Business News of Tuesday, 26 August 2025

Source: www.ghanaweb.com

Public Accounts Committee grills YEA over rent hike

Malik Basintale is the CEO of YEA Malik Basintale is the CEO of YEA

The Youth Employment Agency (YEA) has come under scrutiny by the Public Accounts Committee (PAC) of Parliament for several infractions, including a sharp rent increase, failure to remit pension contributions, and the payment of unearned salaries flagged in the Auditor-General’s 2024 report.

The Chief Executive Officer of the YEA, Malik Basintale, together with the agency’s Finance Director, Benjamin Otto, its internal auditor, and officials from the Ministry of Youth Development and Empowerment, appeared before the committee on August 22, 2025.

When questioned about the sharp rise in rent over the years, the YEA CEO explained that the increment resulted from a transfer by the Ministry of Works and Housing, which handed over management of the property to K&A Developers.

This compelled YEA to pay rent to the private managers.

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He noted that a rent agreement was signed between YEA and K&A Developers Limited, the private managers of the Olympic House, which houses the agency.

According to the Auditor-General’s report, YEA’s expenditure on rent and service charges increased from GH¢3.2 million in 2023 to GH¢5.5 million in 2024, a 72.65% rise.

Committee Chairperson, Abena Osei-Asare, described the increment as “unacceptable,” stressing that no negotiations were conducted before agreeing to the charges.

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In response, Basintale admitted that the arrangement was draining state resources and disclosed that the agency was in talks with the Chief of Staff to secure a permanent office to eliminate rent costs.

PAC has therefore referred the matter for further investigation, particularly the role of the Ministry of Works and Housing in the transfer of a state property to a private entity.

On pensions and unearned salaries, the Auditor-General cited YEA for failing to remit over GH¢1.7 million in Social Security and pension contributions on salary arrears between January and July 2024.

The Finance Director, however, explained that the arrears had since been cleared, with receipts submitted to both SSNIT and GLICO. Auditors confirmed the payments.

The report also revealed that the agency paid unearned salaries totaling GH¢161,222 to 26 staff, some of whom had vacated their posts. Management said it had written to 11 of the affected staff to refund the sums and pledged to refer non-compliant cases to the police, while 15 of the beneficiaries remain at post.

PAC members described the recovery rate as slow and warned they might hold management personally liable if the outstanding sums were not retrieved.

SSD/MA

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