Three Ketu District Assembly Officials cited for misuse of monies

Denu, July 22, GNA-Three former officials of the Ketu District Assembly, including the former District Chief Executive (DCE) have been cited by an audit investigation report for wanton disregard for laid down financial procedures in the administration of the district. The report, which was discussed at an emergency general meeting of the assembly on Friday at Denu noted that the Assembly's finances had been distressed as a result.

"The failure of the Assembly to adhere to guidelines for the utilization of the HIPC Funds, for example, and award of contracts had derailed the financial operation of the assembly," the report said. The three former officials are Mr Linus Coffie, DCE between 2000 and 2004, Mr Geoffrey Tsikata, Finance Officer, (DFO) and Mr Divine Ayidzoe, District Coordinating Director (DCD) now on Transfer to the Greater-Accra Regional Coordinating Council.

Mr Ayidzoe at a recent general meeting of the assembly before his transfer stated that he acted according to the dictates of his superior officer, apparently in reference to the former DCE, when explanations were being sought from him about financial and contracts transactions in 2004.

The District Assembly at a General Meeting in June this year ordered audit investigations into the account of the district assembly for 2004.

The investigation was to determine how a 750 million cedis HIPC Grant meant for the Keta District Assembly in 2004 but which the National Investment Bank (NIB) wrongly credited to Ketu's account was disbursed.

It was also to establish who authorized award of 13 extra HIPC projects to the tune of 2.1 billion cedis in excess of available funds and aside the two projects the Ministry of Local Government and Rural Development (MLGRD) approved for execution that year.

The order for investigations was prompted by the disclosure by the current DCE, Mr Justice Cudjoe at a general meeting in June this year at Denu that the NIB had withheld Ketu's 2006 HIPC Grant to use it in offsetting Keta's 750 million cedis wrongly credited to Ketu in 2004, which increased Ketu's grant that year to 1.5 billion cedis.

Mr Cudjoe said the bank, on detecting the error converted it into a 750 million cedis overdraft for Ketu, with an interest, which according to the audit report accrued to 35.074 million cedis as at June this year.

The report stated that the assembly denied receiving any extra funds when the bank detected the error in investigations into the whereabouts of the funds by the Controller and Accountant General's Department (CAGD).

The report said the 750 million cedis was used for 20 pieces of 29-inch Toshiba Television sets at 6.8 million cedis per set for selected schools in the district, payment of interim certificates to five contractors amounting 502,482,754.72 cedis and other transactions amounting to 122,395,973.92 cedis in excess of about 10,878,229.42 cedis.

The report, which said it visited 13 out of 20 schools listed to have received the set, said it found the purchase of the set to be in contravention if the guidelines for the utilization of HIPC Funds, as "the regulation did not include the provision of TV sets". It also found that most of the recipient schools were still without electricity or secured offices, living most of the sets being kept by the heads of the schools in their homes without the target groups benefiting.

The report advised that the Assembly must always approve of contracts fully including the performance grants and bank guarantees before the payment of mobilization fees, noting that "ineffective supervision of contractors led to undesirable situations in the past". It also advised that the Assembly focused on priority projects duly approved by the MLGRD and the assembly's Tender Board to promote sound financial management.

Meanwhile the Assembly had ordered that the three former officers listed by the report be surcharged with the 35 million cedis interest on the 750 million cedis.

The Assembly however, queried the reporting ability to determine whether the contract sum listed against the projects had been fully settled or not as all the 13 projects remained uncompleted. The emergency meeting of the Assembly however, ended abruptly when the members refused a request by the high table led by Mr Cudjoe, the DCE, to approve of new bylaws before they were presented with copies at a later date.

In a comment Mr James Avedzi, Ketu-North Member of Parliament said the assembly was not exercising its powers effectively and demanded that something needed to be done at this time to deter other officials who would mismanagement the finances of the assembly.

Later in an interview with the GNA Mr Avedzi said the attitude of the former DCE by awarding contracts to the tune of 2.1 billion cedis on his own showed he was a dictator and asked government to help wipe out officials with such tendencies.

Mr. Francis Dzineku, Acting Presiding Member decried as untenable the comment by the former DCD that he acted under orders of his superior stating that as a technocrat he should have stood his grounds for the correct thing to be done. 22 July 06