The Auditor-General’s report on the public accounts of Ghana, public boards, corporations and other statutory institutions for the period ended 31 December 2020, has revealed a total amount of ¢12.85 billion irregularities equivalent of $918.28 million was committed in 2020.
According to the AG report, these irregularities was committed by public boards, corporations and other statutory institutions.
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The report alluded that the irregularities include outstanding debtors, cash irregularities, payroll irregularities, tax irregularities, procurement irregularities, stores irregularities and contract irregularities.
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From the report, the total irregularities figure of ¢718.08 million in 2016 increased to ¢12.002 billion in 2017. The irregularities declined by ¢8.99 billion in 2018 to ¢3.007 billion.
However, the total irregularities increased by 81.8% from the 2018 figure of ¢3.007 billion to ¢5.46 billion in 2019.
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During the period ending 31st December, 2020, the total irregularities recorded a 135% or ¢7.387 billion rise from ¢5.468 billion in 2019 to GH¢12.85 billion in 2020.
This was occasioned mainly by a surge of GH¢5.207 billion or 107% in outstanding debtors/loans/recoverable component of the total irregularities for the period ending 31st December 2020.
The Auditor General Report said these irregularities represent trade debtors, staff debtors and outstanding loans.
Included in the figure is an amount of ¢5.487 billion due from customers for power supplies in respect of Forex Power Sales, Local Power Sales, Mines Power Sales, Other Local Power Sales, Government Ministries, Departments and Agencies Power Sales, and other Power Related Recoverables as at 31 December 2019.
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The Auditor-General Report further said the 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 Auditor-General recommended that Management of Public Boards, Corporations and other Statutory Institutions should strictly adhere to rules and regulations with regards to debts management.