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Business News of Sunday, 18 July 2021

Source: www.ghanaweb.com

PIAC outlines wrongful lodgements of petroleum revenues into GRA accounts as its biggest challenge

The Public Interest and Accountability Committee (PIAC) The Public Interest and Accountability Committee (PIAC)

• PIAC has issued a paper for August 2020 on Ghana's Management and use of Petroleum Revenue

• Among its challenges, it said wrongful lodgements were made into wrong accounts

• Other challenges included the recurring noncompliance in the reported expenditure of the MoF to the PRMA requirement to spend at least 70 percent of the ABFA on Public Investment Expenditure


The Public Interest and Accountability Committee (PIAC), Ghana’s petroleum revenue watchdog, has said that the wrongful lodgment of the petroleum revenues in the Ghana Revenue Authority accounts, was one of its biggest challenges in the month in review.

It stated, in its latest issue paper for August 2020, that “Among the myriad of challenges that confronts the effective implementation of the PRMA is the recurrence of wrongful lodgment of petroleum revenues/ receipts into GRA accounts, contrary to the dictates of the Petroleum Revenue Management Act (PRMA).”

Citing a specific example, the PIAC document showed how an amount of US$13.52 million was wrongfully paid in 2017, and into the wrong account.

“For instance, an amount of US$13.52 million, which was wrongfully paid into GRA’s account in 2017 has only recently been transferred into the PHF as required by the PRMA, according to GRA. The practice re-occurred in 2019, though rectified in the same year.

“This denies the PHF the needed resources for development financing. The recurring noncompliance in the reported expenditure of the MoF to the PRMA requirement to spend at least 70 percent of the Annual Budget Funding Account (ABFA) on Public Investment Expenditure is another challenge,” it said.

Other challenges it encountered within the period were the recurring noncompliance in the reported expenditure of the MoF to the PRMA requirement to spend at least 70 percent of the ABFA on Public Investment Expenditure, and, the implementation of the Law relates to the recurrence of unutilized ABFA.

PIAC urged for government to expedite action on its recommendations to ensure the efficient management and use of the country’s oil revenue.

PIAC which is an independent statutory body mandated to promote transparency and accountability in the management of petroleum revenues in Ghana was established in 2011.

This year, PIAC is celebrating its 10th year anniversary with the theme ‘Strengthening Citizens’ Ownership and Understanding of PIAC and Its Oversight of Petroleum Revenue Management.

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