Disallowances, surcharges: Game changer in public accounting

Once again, the cycle of public accounting is here, and the Public Accounts Committee (PAC) is unveiling some of the excesses with our public accounting.

On Tuesday, February 8 and Wednesday, February 9, at the sitting of the committee, the administration of Ghana’s resources by agencies under the Ministry of Finance (MoF) and the Ministry of Health (MoH) came up for review.

The Customs, Excise and Preventive Service (CEPS), under the MoF, failed to account for 97 confiscated vehicles.

The vehicles were among 1,719 vehicles confiscated and auctioned.

In the case of the Korle Bu Teaching Hospital (KBTH), management of the hospital was directed to pay GH¢123, 577.44 in two weeks.

This is money for items procured that could not be accounted for.

The Pantang Nursing and Midwifery Training College was also directed to liaise with INTERPOL to help trace one Afia Nyakoa, a former tutor to refund GH¢59,000 as unearned salaries.

More excesses in public finance administration and management will be revealed as sitting continues.

Such yearly reviews of public finances reveal the untoward acts and inaction in the society.

The PAC sittings afford the opportunity to heads of public institutions to clarify their actions in administering public resources.

The sittings also introduce openness in the processes of public financial accounting.

However, it usually ends within the confines of the room where the committee sits.

Sometimes, the consternation by some members of the committee to the responses given and the public shock, remains just those: consternation and shock.

No remedial action is taken; and several billion cedis continue to be wasted, misappropriated and squandered yearly.

In 2020, Ghana lost GHC 2,053,176,449.85 as a result of such financial irregularities, (Occupy Ghana, a civil society group-Daily Graphic Monday, February 14, 2022, page 46/47)

It was, therefore, heartening when on June 14, 2017, Occupy Ghana petitioned the Supreme Court to redress the trend of wastage in the administration of public resources.

In Occupy Ghana v Attorney General, the court emboldened the Auditor General's function of disallowance and surcharges under Article 187 (7) (b) of the Constitution.

Disallowance is the state refusing to admit and pay for expenditure that is not done according to budget.

Surcharges are penalties on the money misspent or misappropriated.

Unfortunately, we are unhappy that more than half of audit recommendations made to institutions are not implemented.

Furthermore, we are dissatisfied with the fact that since 2019 and after the SC ruling, there has been no issuance of disallowance or surcharge by the Auditor General.

Surcharges and disallowances are described as game changers in the fight against corruption.

Indeed, the new regime clearly exacts from dubious office holders the misappropriated funds.

It clearly initiates a refreshing regime in public service, where those failing to be responsible are made to pay for their excesses and lapses.

The Daily Graphic hopes that the Auditor General applies disallowances and surcharges for the recovery of public resources that can go a long way to push the country’s development efforts.

In the same vein, the Daily Graphic cautions heads of public institutions and ministers not to shield public officers who misspend public funds.

We must all take an interest in the work of the Auditor General to save resources for development.