Auditor-General uncovers GH¢1.4bn irregularities …Tax alone contributed 88%

The Auditor-General has detected more than GH¢1.4 billion financial irregularities in the accounts of Ministries, Departments and Agencies (MDAs) for last year.

The infractions constitute 30.63 per cent or GH¢331.1 million jump over the GH¢1.1 billion discovered in 2021, raising fresh concerns on measures being taken to curb such financial irregularities which often feature in the public accounts of most government agencies.

The rise in irregularities captured in the latest Auditor General’s report on MDAs is a departure from the downward trend in the last five years and has started increasing again.

From GH¢5.6 billion in 2018, the irregularities declined consistently to GH¢1.1 billion in 2021, before rising again in 2022.

The irregularities were mainly in the form of tax, cash, indebtedness, loans, advances, payroll, stores, procurement, rent and contract.

The Auditor-General, Johnson Akuamoah Asiedu, told the Daily Graphic that the report on MDAs as well as others numbering 16, had been made available to Parliament in compliance with the constitutional requirement.

Tax irregularities formed 88.3 per cent of the total financial infractions reported. Included in this tax irregularity was GH¢327.64 million due from 18 Oil Marketing Companies (OMCs) who defaulted in paying their rescheduled debt between January and December 2022.

Also, an amount of GH¢361,68 million was owed by 2,557 registered value added tax (VAT) traders during the year of assessment.

The report indicated that the irregularities could be attributed mainly to failure on the part of the Ghana Revenue Authority (GRA) to pursue the OMCs and register VAT traders by applying the relevant measures and sanctions against defaulters.

“I recommended that the Commissioner-General, GRA, should strengthen monitoring and supervision of staff.

He should also take steps to improve efficiency in their tax collections and follow up on overdue taxes while applying sanctions as prescribed by the tax laws,” it said.

Cash irregularities

Total cash irregularities noted during the period amounted to GH¢57.5 million which represented 4.1 per cent of the total irregularities.

These irregularities which cut across MDAs were attributable to the underlisted infractions including unapproved disbursements, unpresented payment vouchers, unaccounted revenue and unsupported payment vouchers.

Others are funds to the bank not credited, non-lodgement of public funds and embezzlement of funds.

Included in the total cash irregularity of GH¢57.5 million was an amount of GH¢300,007.16 paid on 56 payment vouchers (PVs) but were not presented for examination during the reviewed period.

The report maintained that in the absence of the payment vouchers and supporting documents, the chief executive officer and the director of finance should be made to pay.

 Total indebtedness, loans and advances accounted for GH¢89.7 million, representing 6.4 per cent.

A significant amount of these irregularities was GH¢1.8 million owed by 72 farmers who received farm equipment on credit basis under the Ministry of Food and Agriculture’s Brazilian More Food Programme.

“I recommended that the chief director should ensure that the head of tractor accounts recovers the outstanding amount of GH¢1.8 million from the beneficiaries,” the report stated.

Payroll irregularities amounted to GH¢14.3 million and it was included in the total payroll irregularities which was GH¢1.9 million being unearned salaries paid to 95 unknown names from an institution under Ministry of Health (MoH).

The Auditor-General therefore asked that there should be the recovery of the total amount by the Regional Health Director and the Medical Director without delay.

Stores, procurement and rent

Stores and procurement irregularities contributed GH¢321,950.

Included in these irregularities was GH¢250,650 relating to items such as office furniture, computers and accessories which were not supplied by the contractor.

“I recommended that the Regional Fire Officer should ensure that the contractor supplies the items or refunds the amount of GH¢250,650,” the report indicated.

Rent contributed GH¢2.1 million which included GH¢648,464 due from seven institutions who rented government facilities but defaulted in the rental payment.

It also consisted of GH¢306,255 due government from 29 occupants of government bungalows and flats and GH¢234,374 due the government from four banks and one non-bank entity as ground rent for operating automated teller machines (ATM).