Members of the PAC raised serious concerns about the continuous mismanagement of resources disbursed to state institutions particularly the Regional Coordinating Councils, Metropolitan, Municipal and District Assemblies.

The PAC, which is chaired by Deputy Minority Leader, James Klutse Avedzie, is sitting in Tamale reviewing the Auditor General’s 2015/2016 report of public institutions.

Authorities of all public institutions in the three regions of the north are expected to appear at the Committee’s one-week sittings.

Hon. James Klutse Avedzi decried some public office holders neglect of the Financial Management Acts, and called for attitudinal change.

According to him the Auditor General’s previous reports revealed how some state institutions’ internally generated funds and government subventions were misused.

“Public officers who are spending money or advising heads of departments to part with money meant for the people of this country must be guided by the various regulations.”

The Ketu South Legislator served notice that the Committee wouldn’t hesitate to recommend punitive sanctions on duty bearers found misappropriating public funds.

The Member of Parliament for the Bunkprugu constituency, Solomon Boar, called for the forensic audit of abandoned GETFund sponsored projects at the Tamale Technical University (TaTU).

“The GETFund projects at the TaTU have consistently been captured in the annual Auditor General’s report since 2012, but nothing seems to be done about the completion of the said projects,” he lamented.

As a Deputy Northern Regional Minister, Solomon Boar said the abandoned projects were awarded ten years ago.

“I believe that the projects which were started ten years ago, would have given the university and its entire structure a major face-lift if they had all been completed on schedule by now. The failure to complete the projects on schedule by the contractors has caused a lot of public concern.”

The interim Vice Chancellor of the TaTU, Professor Abdulai Salifu Asuro, explained that there were five different GETFund sponsored projects at various levels of completion at the university.

These projects, he said are, “The Vice Chancellor’s Residence, Girls Hostel, Library and two other edifices.”

Professor Asuro defended the contractors saying, “I think that the contractors could not be entirely responsible for the delay, and lack of funds could be a major factor.”

The Member of Parliament for Builsa South Constituency, Dr. Clement Apaak, expressed disquiet about authorities of the Nandom District Assembly’s decision to operate a bank account in faraway Wa Township.

“In this day and age it should be possible for the Nandom District Assembly and for that matter all Metropolitan, Municipal and District Assemblies in Ghana to operate bank accounts in their respective jurisdictions.”

He insisted that, “MMDAs should have an option of opening bank accounts closer to them as it enables them to bring closer their activities to the people whom they are serving.”

“Mr Chairman, I think that the Assembly has to look at the option of establishing an account in a bank in Nandom whether it is rural or not. Because as a district, I believe that it is time that you bring your activities closer home. I must say I am a bit disappointed that today we have Nandom District Assembly still saving or having accounts in Wa.”

Appearing before the Committee, authorities of the Wa East District Assembly failed to explain why the Assembly recorded completely zero revenue in the 2014 fiscal year, clearly captured in the Auditor General’s report.

A member of the Committee and MP for Komenda Edina Eguafo Abrem, Samuel Atta Mills, accused some civil servants of being corrupt than politicians as it is widely perceived.

“Whenever we read about corruption, the first people they look at are we the Parliamentarians. Now the public should know that when we talk about corruption we’re talking about civil servants, not the politicians.”

The PAC is expected to end its sittings in the Northern Sector by the close of Friday February 16, 2018, and move to the Brong Ahafo Region.

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By: Abdul Karim Naatogmah/citifmonline.com/Ghana

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The LI seeks to also carve some municipalities from other assemblies, and also elevate some existing districts to municipality status.

The infographics below capture features of a Metropolitan, Municipal and District Assemblies, as specified in Ghana’s Local Government Act.

In terms of population, for instance, a Metropolitan Assembly is expected to have over 250, 000 people living within its jurisdiction.

Municipalities are supposed to have a population size of about 95,000, whilst about 75,000 are expected within a district.

A Metropolitan, which is the biggest among the assemblies, also has 16 departments, Municipal, 13 and districts 11.

Below are the infographics summarizing the features of the MMDAs:

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By: Godwin A. Allotey & Melvin Clottey/citifmonline.com/Ghana
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The post Distinct features of MMDAs [Infographic] appeared first on Citi 97.3 FM - Relevant Radio. Always.

The amount according to the Auditor General’s report, was from financial weaknesses in cash, tax, payroll, procurement, rent and contract irregularities as well as outstanding debts and loans.

The Health Ministry according to the report, recorded the highest financial irregularity of more than Ghc25 million.

[contextly_sidebar id=”cifpVgx0l8BJaHeinK2g6IcoQ9SVIoLC”]Payroll irregularities contributed significantly to the figure, as almost Ghc600, 000 unearned salaries were paid.

On the payroll irregularities, the report said “This was due mainly to payments of unearned salaries to separated staff, as a result of delays in deleting their names from the payroll, and delay in transferring unclaimed pensions and salaries to government chest by the banks.”

The Auditor General further recommended that, coordination between Finance and Human Resource Units within MDAs be intensified for prevention of such situations “as well as recovery of unearned salaries paid to unauthorized personnel.”

The Deputy Minister for Health, Kingsley Aboagye Gyadu, in a Citi News interview after the hearing on Wednesday, said that every ministry will device a mechanism to retrieve all such monies.

“This issue of unearned salary and infractions are almost always common. The unearned salaries are losses to the state, but unsupported payments meant that when the auditors were there, they didn’t see the supporting documents. When we are talking about supporting documents we mean invoices, vouchers, receipts were not provided to the auditors at the time they were doing the audit. But like we said, subsequently they have been provided, the auditors have looked at it and they are okay.”

“With regards to the unearned salaries, I’m going to meet the facilities that had that problem; we will find a way of getting the people to pay back to the government,” he added.

Ghana loses millions yearly

Reports from the Auditor General’s Department had shown that the country loses millions every year through the activities of MDAs, as well as the Metropolitan, Municipal and District Assemblies.

This compelled pressure group, OccupyGhana, to drag the Auditor General to the Supreme Court for an order, directing the Auditor General to surcharge persons who cause such financial infractions.

According to Occupy Ghana, a thorough study of the Auditor General’s report revealed that, between 2003 and 2014, the total losses the state incurred in “irregularities” arising from Government Ministries, Departments and Agencies was about GH¢2,448,968,912.29.

Retrieve ‘looted’ state cash – Supreme Court orders Auditor General

The Supreme Court in June 2017, ordered the Auditor General to, with immediate effect; begin surcharging persons found to have misappropriated monies belonging to the state.

By: Godwin Akweiteh Allotey & Caleb Kudah/citifmonline.com/Ghana
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The study is line with government’s proposal for the government‘s plans to carve out four more regions from the existing ten.

[contextly_sidebar id=”omUovi6lHRosMgf5K2Rl7XIMXZjsa7vP”]President Akufo-Addo last week inaugurated a nine-member Commission of Enquiry to collate data on the creation of the regions.

Following this, the Electoral Commission has said it will carry out the study to inform the creation of the new districts.

In a memo from the Director of Electoral Services to all Regional Directors, the commission said it has constituted 10 teams for each of the regions, to be headed by the Commission member responsible for the region.

The teams will be made of Directors and Senior Officers from the Head Office, as well as regional directors and their deputies.

They are expected to hold consultations with Chief Executives of the local assemblies, and their presiding members, members of parliament for the affected areas, and opinion leaders.

The field study is to consider the population dynamics in the respective regions, the geographical or physical features of the areas, their economic viability, as well as ethnic and community interests.

It will also consider social infrastructure, and the centrality and accessibility of the capital.

The teams are expected to make proposals for the split of bulky electoral areas especially in the sub-metros.

It is however unclear whether the deputy chairpersons of the Commission in charge of operations and corporate service; Sulley Amadu and Georgina Opoku Amakwah, will be available for the two-week exercise given that they are yet to resume from their forced leave.

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By: Sixtus Dong Ullo/citifmonline.com/Ghana

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Speaking to Citi News’ Duke Mensah Opoku, the Akim Swedru Member of Parliament (MP) implored the Local Government Ministry to probe the intent of the Regional Coordinating Council, and if found culpable, sanction those behind the circular.

[contextly_sidebar id=”0jfSWfZfzCelDNhFTumnEm5aVhCjlMbl”]“We have to investigate to ascertain the purpose. We need to know the rationale for taking that money… So we need to establish that fact first. And if we are able to establish that fact, then the culprits could be sanctioned,” he added.

His comments follow the emergence of a circular that directed Northern Regional MMDCEs to contribute GHc5, 000 each towards the visit of the President; a directive that has since been withdrawn.

Osei Nyarko further described the directive as disgusting.

“For me it’s disgusting. The president hasn’t instructed anybody [to do that]. Government machinery has its own budget. This is not the first time the president is touring the country, he went to the Western Region – he never asked anybody to make any contribution.”

He explained that anytime a president embarks on such trips “he comes with his housemen; and everything that he needs, state protocol has taken care of all those things.”

Group slams Northern RCC over directive

A Local Governance Think Tank, Centre for Local Governance Advocacy, on Monday also called for sanctions against the Northern Regional Coordinating Council for demanding the GHc5,000 each from the 26 assemblies in the region, to support the President’s tour of the area this week.

Speaking to Citi News, the Deputy Executive Director of the Centre, Gladys Naadu Tetteh, said the demands from the Coordinating Council were unfortunate, and steps must be taken to discourage such a practice from becoming the norm.

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By: Godwin Akweiteh Allotey/citifmonline.com/Ghana
Follow @AlloteyGodwin

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Speaking to Citi News, the Deputy Executive Director of the Centre, Gladys Naadu Tetteh, said the demands from the Coordinating Council were unfortunate, and steps must be taken to discourage such a practice from becoming the norm.

[contextly_sidebar id=”zuMVOsmT3B71kgFot7PkSt27xGKoqZdG”]According to her, when the president visits MMDAs, they often overspend and in several cases overstate their expenditure.

Per the new local government Act, the Regional Coordinating Councils (RCCs), are supposed to receive a percentage of the Common Fund to undertake their activities.

She insisted that, if the president is coming to their region, the RCCs should use their percentage of the common fund and not burden the districts.

“When the president visits MMDAs, they overspend and even though sometimes they spend much less, they quote higher figures. So even though the RCC directive to the MMDA is not good, for me I think we should discourage that. Definitely, the presidency has their budget. This is coming from the RCC. It is the RCC which is the coordinating body within the region which is asking the Assemblies to pay. Per the new Local Government Act, they are supposed to get a percentage of the common fund to undertake their activities or operations. So they should not burden the assemblies with all their other expenses,” she said.

“Probably because the president would be moving through the district, you know the assembly too would be a little petty probably (that’s what I suspect), that’s why this amount of money is being requested. If they have received it and the letter has gone to them then the RCC needs to be talked to, I won’t use the word sanctioned, but I think they need to be talked to, to take a second look at some of the things they are doing in the region,” she added.

‘Don’t pay for President’s trips’

Meanwhile, the Northern Regional Minister, Salifu Saeed, has directed all Metropolitan, Municipal and District Assemblies (MMDAs) in the region to disregard a circular which requested them to pay Ghc5,000 each to fund President Nana Addo Dankwa Akufo-Addo’s three-day official visit beginning October 6.

The Minister in an official statement copied to citifmonline. com implied that, his office did not endorse the earlier memo.

The statement however admitted that, the Metropolitan, Municipal and District Chief Executives’ caucus in the region, voluntarily made the earlier proposal which his office did not endorse.

Salifu Saeed has therefore dismissed the earlier memo which went viral on both mainstream and social media.

According to him, the President’s trip is to be fully sponsored by the Presidency.

The Local Government Ministry has also denied asking the Regional Coordinating Council; to contribute that amount after it emerged that a circular had been sent to all district assemblies.

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By: Michael Ogbodu /citifmonline.com/Ghana

The post Group slams Northern RCC over botched ‘payment’ for Nana Addo’s trip appeared first on Citi 97.3 FM - Relevant Radio. Always.

The construction of residential buildings in inappropriate locations in the region, was brought under the spotlight following recent floods in capital Kumasi, which displaced hundreds of people.

[contextly_sidebar id=”LR3r7e0JPce1QGAgwFiJ2sqXqd0hwYIQ”]The Regional Coordinator of NADMO, Kwabena Senkyire, told Citi News that experts in the various MMDAs, have to ascertain that lands which have been requested are available, and have not been earmarked for other projects before permits are issued.

“The technocrats at the various District Assemblies, if somebody comes to request for a permit to build on a waterway, they have to go and assess the kind of the land they are requesting. They have to go and ascertain if it is or not close to waterways. We shouldn’t buy lands from watersides or places demarcated for schools and sanitary sites.”

Officials of NADMO blamed the floods on people building on waterways, and described the incident as man-made, a claim which has been denied by the residents, who maintain it is as a result of the poor construction of the bridge over the drain.

The disaster organisation is yet to provide relief items to the affected people, but Kwabena Senkyire revealed that a report would be sent to the headquarters in Accra from where the items would then be allocated and distributed.

He also questioned the work of the MMDAs, saying they should be playing major roles in the relief efforts given the amounts of money they receive from residents in taxes and fees.

“It’s our responsibility to send the report to Accra and we have done it. We have done everything, but we are going to send it to the national headquarters on Monday. Whatever is going to be dispersed or whatever we are going to give to the victims will be determined by [headquarters],” he stated.

“But what about the District Assemblies that they have been paying taxes to; property rates, land rates – what are they also doing for these people.? We are embarking on education. When there’s something available for the victims, we’ll give it to them. After all, it’s not for NADMO, it’s for the people.”

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By: Edwin Kwakofi/citifmonline.com/Ghana

The post Inspect sites before issuing permits – NADMO to MMDAs appeared first on Citi 97.3 FM - Relevant Radio. Always.

The Minister in an official statement copied to citifmonline. com implied that, his office did not endorse the earlier memo.

[contextly_sidebar id=”VnZteGnoaHBMDUmyK54e0U70DAfaNgzd”]The statement however admitted that, the Metropolitan, Municipal and District Chief Executives’ caucus in the region, voluntarily made the earlier proposal which his office did not endorse.

Salifu Saeed has therefore dismissed the earlier memo which went viral on both mainstream and social media.

According to him, the President’s trip is to be fully sponsored by the Presidency. The announcement about the payment became public after citifmonline.com sighted a copy of the leaked circular.

Don’t pay for Nana Addo’s visit – O.B Amoah to MMDAs

Meanwhile, the latest decision by the Northern Regional Minister to the MMDAs, comes after a Deputy Local Government Minister, O.B. Amoah, stated on the Citi Breakfast Show, that his outfit was unaware of the directive.

He also asked the MMDAs not to pay the amount.

What has been the practice?

Assemblies bearing part of the cost for presidential visits is not new.

Although the presidency has its own budgetary allocation, assemblies in all successive governments are often forced to bear part of such cost for the president’s trips, despite the huge financial challenges most of them are faced with, which hampers development.

Sadly, most of these assemblies have not received their full budgetary allocations from the Central Government, and they also generate very little on their own.

Below is the official statement.

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By: Abdul Karim Naatogmah/citifmonline.com/Ghana

The post MMDAs won’t pay for Nana Addo’s trip – Regional Minister appeared first on Citi 97.3 FM - Relevant Radio. Always.

Out of a total of GHc 33,392,496.94 released to the assemblies in the Greater Accra Region in 2016, GHc 1,589,612.14, representing 4.76% was not properly accounted for according to the report.

iWatch Africa’s assessment of the Auditor General’s report also revealed that, out of a total GHc 352,286,432.22 allotted to all 216 Assemblies, GHc 70,173,645.97, representing 19.92% was not properly accounted for.

Assemblies in the Volta Region mismanaged most of the funds that were allotted them.

Out of a total of GHc 39,846,537.39 released to the twelve Assemblies in the Volta Region in 2016, GHc 13,428,234.45, representing 33%, was not properly accounted for.

This finding is alarming, especially as the current administration expects 85% of local government budget for 2017 to be funded by donors.

Below is an infographic report:

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Source: iWatch Africa

The post Regional Ranking: How MMDAs mismanaged Common Fund cash [Infographic] appeared first on Citi 97.3 FM - Relevant Radio. Always.

The amount shows a 32 per cent (almost GH¢17 million) increase in the 2015 financial irregularities of the assemblies that the Auditor-General’s Report pegged at almost GH¢53.2million.

[contextly_sidebar id=”17XSbcN5dBeZttnF3CZ50kAUWP5qFdUx”]According to the 2016 Auditor-General’s Report titled: “Management and Utilisation of District Assemblies’ Common Fund and other Statutory Funds” for 2016, the management and members of staff of assemblies continued to violate measures put in place to safeguard the public purse.

“Management and staff of the assemblies continued to violate rules and regulations, policies, procedures and directives which had been put in place to ensure the economic, effective and efficient management of public resources made available to MMDAs,” the report, signed by the Auditor-General, Mr Daniel Y. Domelevo, said.

A ritual
In what has become a ritual of malfeasance sent to Parliament by the Auditor-General annually with little to show in the form of punitive actions against offenders, the report laid the blame at the doorstep of the Ministry of Local Government and Rural Development and management of the various assemblies.

“The state of affairs in the management of resources by MMDAs again did show the lack of interest and dedication to duties and responsibilities, as well as commitment on the part of the Ministry of Local Government and Rural Development and management of MMDAs in the implementation and enforcement of my audit recommendations towards mitigating infringements of the laws.

“I also attributed the situation to the non-imposition of sanctions to minimise the violations. I reiterate that effective supervision, monitoring and enforcement of existing statutory and regulatory frameworks, together with imposition of sanctions should be made paramount to curb the infractions.

“I once again employ the Ministry of Local Government and Rural Development and management of the MMDAs to impose sanctions where necessary to serve as a deterrent to others,” the report said.

The 2016 Report was released yesterday on the heels of a recent announcement by the Auditor-General that the properties of even dead people who received or took funds from the public purse wrongly would not be spared, as it begins surcharging persons and organisations implicated in the annual Auditor-General’s reports.

Eleven people have so far been surcharged for their involvement in financial irregularities that drain the state’s coffers.

According to the report, the violations persisted in spite of the Audit Service’s recommendations with regard to compliance with the financial regulations and other existing public financial management laws.

It observed that the “management letters on the interim and final audits which formed the basis of this report, revealed recurring internal control weaknesses and lapses under our key audit areas of cash management, contract administration, procurement and stores management and tax administration all of which are highlighted in this report.”

Cash irregularities
Cash irregularities totalling GH¢32,684,459.20 was recorded by the 216 assemblies.

Under this category, 93 assemblies were involved in unsupported payments worth a little over GH¢21 million; 18 assemblies recorded unretired imprest of GH¢ 540,301; 12 misapplied funds worth GH¢1.5 million; 13 could not account for GH¢543,294; 11 could not present payment vouchers valued at a little over GH¢1.4 million; one assembly disbursed GH¢305,037 of a Member of Parliament’s (MPs) share of the common fund without the legislator’s approval and another paid GH¢ 626,655 without expenditure warrant.

Contract irregularities
According to the report, a total amount of GH¢26,839,675.97 was noted as contract irregularities from the audits.

Out of the amount, 11 assemblies spent GH¢ 7,030,573 on abandoned projects; completed projects not in use cost 12 assemblies GH¢3,726,675; delayed/unexecuted/ poorly executed projects cost GH¢ 9,224,876; 18 assemblies spent a little over GH¢1.5 million on maintenance and repairs without works orders; four assemblies made GH¢352,475 in the overpayment of contract sum, while four assemblies paid GH¢308,247 without monitoring reports.

Three other assemblies paid a little over GH¢1million for projects that were not in their annual action plan; two assemblies spent GH¢1 million on contracts in which there was no submission of contract documents or no contract agreement, while two assemblies paid GH¢150,776.90 for non-existing projects.

Procurement
The report also stated that during the year, procurement and stores irregularity amounted to GH¢10,341,200.67.

It showed that 24 assemblies paid more than GH¢2.6 million on what the report described as uncompetitive procurement; 36 of them spent almost GH¢3million on purchases from non-VAT registered entities; 16 spent GH¢1,093,947.98 on unaccounted fuel; seven failed to account for more than GH¢1 million worth of items distributed, while two paid GH¢480,000 for single-sourced contracts not executed.

Tax irregularities
Tax irregularities with a total value of GH¢308,310.13 were identified in some assemblies, the report said.

Here, 18 assemblies failed to remit GH¢158,147 in taxes withheld; the failure of 26 assemblies to withhold taxes cost the state coffers GH¢122,401; seven assemblies were involved in the payment of VAT without VAT receipts valued at GH¢ 26,567.

District finance officers in trouble
Fourteen district finance officers of 14 assemblies—Asante Akim Municipal, Bekwai Municipal, Ejisu Juabeng Municipal, Offinso Municipal, Adansi South District, Afigya Kwabre, Asante Akim South, Atwima Mponua District, Bosome Freho District, Offinso North District, Sekyere Afram Plains District, Sekyere East District and Sekyere Kumawu District were reported to have violated Part IX, Sections 13 and 14 of the Financial Memoranda for Assemblies as they failed to substantiate payments totalling GH¢1,899,826.19 with the requisite expenditure documents such as invoices, receipts of payees and statements of claims.

The report recommended that in “the absence of the appropriate supporting documents, the amount involved should be recovered from the coordinating directors and finance officers of the assemblies.”

The report also indicated that the Kumasi Metropolitan Assembly (KMA) failed to enforce Section 39 of Part IX of the Financial Memoranda (FM) for MMDAs which demanded that all imprest should be retired at the end of the financial year.

However, the Director of Waste Management and the MP for Manhyia South failed to retire a total amount of GH¢43,908 in imprests three to five months after undertaking supposed activities on behalf of the assembly.

“The tendency that the amount was not used in furtherance of the assembly’s activities cannot be ruled out,” it said.

The report recommended that “failure to retire the imprest amount, advance accounts should be opened in the name of the two imprest holders and the amount recovered accordingly from any entitlements due them.”

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Source: Graphic Online

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