The 2022 Auditor-General’s report has revealed significant financial irregularities amounting to more than GH¢15.1 billion in various public boards, corporations, and statutory institutions. This represents a reduction of 13.86 per cent (GH¢2.4 billion) from the previous year’s figure of GH¢17.48 billion.
It is important to note that the irregularities consist of more than GH¢15 billion that can be recovered, representing 99.69 per cent of the total, and an administrative infraction of GH¢47.28 million, making up the remaining 0.31 per cent. The recoverable amount includes outstanding debts, loans, amounts recoverable, cash, payroll, procurement, tax, stores, and contracts. On the other hand, the administrative portion is comprised of procurement irregularities and other procedural infractions in public financial management.
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The report highlights the need for strict implementation of the Auditor-General’s recommendations to ensure financial discipline in managing public resources. It also indicates that irregularities have been a recurring issue in public boards and corporations from 2018 to 2022, totaling over GH¢53.87 billion during this period.
While the number of irregularities decreased from GH¢17.5 billion in 2021 to GH¢15.1 billion in 2022, there is still a concerning trend. The report shows that most irregularity categories decreased last year compared to the previous year, even though more institutions (113) were audited in 2022 than in 2021 (101).
The administrative irregularities, mainly arising from procurement, overdue payables, and delayed payments to suppliers, do not signify a loss of funds. However, they do indicate areas where improvements in public financial management practices are needed.
For instance, the report identifies significant amounts due from various organizations, such as $741.93 million from customers of Ghana National Gas Limited Company, including Bui Power Authority, Ghana National Petroleum Corporation (GNPC), and the Northern Electricity Distribution Company (NEDCo). These amounts are related to inter-governmental agency debts, trade debtors, staff debtors, outstanding loans, and cash locked up in non-performing investments.
The report attributes the irregularities to factors such as the absence of effective debt collection policies, inadequate credit controls, poor record-keeping on debtors, lack of documentation for loan agreements, failure to ensure timely loan repayments, and non-compliance with rules and regulations by management.
To address these issues, the report recommends that management of public boards, corporations, and statutory institutions strictly adhere to rules and regulations regarding debt management and implement proper policies for managing loans and other receivables. Additionally, they should ensure timely repayment of loans and debts to minimize bad debts.
Cash irregularities, totaling GH¢23.51 million, were also identified, involving misapplication of funds, unauthorized payments, and payment of board allowances to Council Members without ministerial approval. Poor oversight responsibility and nonexistent controls contributed to these cash irregularities, along with the failure to properly file and keep records by finance officers.
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Overall, the Auditor-General’s report underscores the importance of improving financial management practices, oversight, and adherence to regulations in public institutions to safeguard public funds and promote financial accountability and transparency.
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