The latest report by the Auditor-General has uncovered seven irregularities at Ministries, Departments and Agencies (MDAs) in 2020.
The state in the report has lost more than GH¢12.8 billion to a host of irregularities at Ministries, Departments, and Agencies (MDAs).
1. On contract irregularities, GH¢89,807,321 can not be accounted for, this according to the report mainly relates to delay in construction projects in the various Public Boards, Corporation and other Statutory Institutions.
The report urged Managements to strengthen controls over contracts and ensure that funds are available in order to engender speedy completion of earmarked projects.
 2. Procurement irregularities also cost the state GH¢846,134,269, these irregularities occurred as a result of Managements’ non-compliance with the provisions of the Public Procurement Act 2003, (Act 663).
Out of the total irregularities, US$39,000,000.00 (GH¢224,647,800) represented award of contract without following due processes by Management of Bulk Oil Storage and Transportation Company Limited (BOST).
The report recommended that Managements of the various Institutions should undertake procurement transactions strictly in accordance with the provisions of the Public Procurement Act as amended.
3. Cash irregularities recorded GH¢1,802,692,515, the report said it is related to the misapplication of funds, nonretirement of imprest, payments not authenticated, payment of Board Allowances to Council Members without Ministerial approval, cash locked up in non-performing investments. Out of the total figure of GH¢1,802,692,515 cash irregularities, GH¢442,730,876.74 represented cash locked up in non-performing investment by SSNIT.
These occurred as a result of poor oversight responsibility and nonexistent controls. Other contributory factors were finance officers’ failure to properly file and keep records, Management’s failure to ensure the security and safety of vital documents, non-maintenance of returned cheque registers, Management’s inertia in complying with procedures stipulated in the Public Financial Management Act, and poor accounting systems.
Managements of the Public Boards, Corporations and other Statutory Institutions have been asked to strengthen
Report of the Auditor-General on the Public Accounts of Ghana – Public Boards, Corporations and Other Statutory Institutions for the year ended 31 December 2020 6 supervisory controls over their finance officers, and ensure that
they adhere to the provisions of the Public Financial Management Act, 2016 (Act 921). I also recommended the authentication of all payment vouchers, prompt payment to bank and full retirement of accountable imprest on due dates.
4. Outstanding Debts/ Loans Recoverable - GH¢10,067,170,560
These irregularities represent trade debtors, staff debtors and outstanding loans. Included in this figure is an amount of GH¢5,487,969,144.11 due from customers for power supplies in respect of Forex Power Sales, Local Power Sales, Mines Power Sales, Other Local Power Sales, Government MDA’s Power Sales, and other Power Related Recoverables as at 31 December 2019. Absence of effective debt collection policies, non-existence of credit controls to recover the debts and Management’s indifferent posture towards loan recovery contributed significantly to these anomalous conditions.
Also, improper maintenance of records on debtors, the absence of debtors’ ageing analyses, non-documentation of agreements stipulating the terms and conditions of loans, failure to ensure that loans are repaid and Management’s non-compliance with rules and regulations accounted for these irregularities.
The report recommended that the Management of Public Boards, Corporations and other Statutory Institutions should strictly adhere to rules and regulations with regards to debts management. They should also put in place proper policies for the management of loans and other receivables as well as ensuring that loans and debts are repaid on due dates to avoid or minimise the occurrence of bad debts.
 5. Payroll Irregularities - GH¢9,574,765
These lapses were caused by the failure of Management to exercise due diligence, and the laxity of officers in charge of payroll validation in reviewing payment vouchers to ensure salaries were paid to only those who were entitled as well as payroll-related irregularities.
They were also caused by Management’s failure to notify banks to stop the payment of unearned salaries. The Controller and AccountantsGeneral’s Department also did not promptly delete names of separated staff when notified to do so. In other instances, Management also did not transfer statutory deductions in respect of SSF contribution.
Contained in the total irregularity of GH¢9,574,765 is an amount of GH¢4,168,263 attributed to Ghana Railway Company Limited in respect of outstanding 1st and 2nd tier pensions contribution due from Management of Ghana Railway Company Limited to SSNIT and other pension scheme managers.
The report therefore advised the Management Teams of the affected Institutions to promptly notify the bankers of the separated staff to withhold and pay to Government chest all unearned salaries. I also recommended that officers in charge of payroll should exercise due care in the discharge of their duties as well as ensuring that 1st and 2nd tier contribution for their employees are promptly and regularly transferred to the various pension schemes.
6. Tax Irregularities – GH¢29,201,677
The Tax irregularities related to failure to pay statutory tax deductions on due dates, and non-deduction of applicable taxes. They also related to transacting business with non-VAT registered persons or entities. Out of the total tax irregularities of GH¢29,201,677,] an amount of GH¢12,449,542 is attributed to Architectural and Engineering Services Limited (AESL) for unremitted P.A.Y.E and VAT deducted.
The report recommended that the Finance Officers should strictly adhere to the tax laws to ensure that all tax revenues are promptly collected and paid to the applicable revenue agencies. Stores Irregularities - GH¢11,591,519
7. Stores Irregularities - GH¢11,591,519
These irregularities include non-documentation of store items, lack of awareness of officers assigned to store duties and inadequate supervision. Included in the sum of GH¢11,591,519 is an amount of GH¢11,581,019 worth of electrical materials that were given out on loan to eight (8) beneficiary Companies. These materials were issued out between 2014 and 2018 without any specific terms of agreement.
The report recommended for the strengthening of controls over store management and accounting, and also recommended strict adherence to Rules and Regulations that govern the effectual conduct of public financial business.
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