Deficiencies in the operations of metropolitan, municipal and district assemblies (MMDAs) created avenues for some officials of the assemblies to mismanage funds and resources valued at approximately GH\u00a2 70.1 million, the 2016 Auditor-General\u2019s Report on the assemblies has revealed.<\/p>\n
The amount shows a 32 per cent (almost GH\u00a217 million) increase in the 2015 financial irregularities of the assemblies that the Auditor-General\u2019s Report pegged at almost GH\u00a253.2million.<\/p>\n
[contextly_sidebar id=”17XSbcN5dBeZttnF3CZ50kAUWP5qFdUx”]According to the 2016 Auditor-General\u2019s Report titled: \u201cManagement and Utilisation of District Assemblies’ Common Fund and other Statutory Funds\u201d for 2016, the management and members of staff of assemblies continued to violate measures put in place to safeguard the public purse.<\/p>\n
\u201cManagement 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,\u201d the report, signed by the Auditor-General, Mr Daniel Y. Domelevo, said.<\/p>\n
A ritual<\/strong> \u201cThe 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.<\/p>\n \u201cI 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.<\/p>\n \u201cI 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,\u201d the report said.<\/p>\n 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\u2019s reports.<\/p>\n Eleven people have so far been surcharged for their involvement in financial irregularities that drain the state\u2019s coffers.<\/p>\n According to the report, the violations persisted in spite of the Audit Service\u2019s recommendations with regard to compliance with the financial regulations and other existing public financial management laws.<\/p>\n It observed that the \u201cmanagement 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.\u201d<\/p>\n Cash irregularities<\/strong> Under this category, 93 assemblies were involved in unsupported payments worth a little over GH\u00a221 million; 18 assemblies recorded unretired imprest of GH\u00a2 540,301; 12 misapplied funds worth GH\u00a21.5 million; 13 could not account for GH\u00a2543,294; 11 could not present payment vouchers valued at a little over GH\u00a21.4 million; one assembly disbursed GH\u00a2305,037 of a Member of Parliament\u2019s (MPs) share of the common fund without the legislator\u2019s approval and another paid GH\u00a2 626,655 without expenditure warrant.<\/p>\n Contract irregularities<\/strong> Out of the amount, 11 assemblies spent GH\u00a2 7,030,573 on abandoned projects; completed projects not in use cost 12 assemblies GH\u00a23,726,675; delayed\/unexecuted\/ poorly executed projects cost GH\u00a2 9,224,876; 18 assemblies spent a little over GH\u00a21.5 million on maintenance and repairs without works orders; four assemblies made GH\u00a2352,475 in the overpayment of contract sum, while four assemblies paid GH\u00a2308,247 without monitoring reports.<\/p>\n Three other assemblies paid a little over GH\u00a21million for projects that were not in their annual action plan; two assemblies spent GH\u00a21 million on contracts in which there was no submission of contract documents or no contract agreement, while two assemblies paid GH\u00a2150,776.90 for non-existing projects.<\/p>\n Procurement<\/strong> It showed that 24 assemblies paid more than GH\u00a22.6 million on what the report described as uncompetitive procurement; 36 of them spent almost GH\u00a23million on purchases from non-VAT registered entities; 16 spent GH\u00a21,093,947.98 on unaccounted fuel; seven failed to account for more than GH\u00a21 million worth of items distributed, while two paid GH\u00a2480,000 for single-sourced contracts not executed.<\/p>\n Tax irregularities<\/strong> Here, 18 assemblies failed to remit GH\u00a2158,147 in taxes withheld; the failure of 26 assemblies to withhold taxes cost the state coffers GH\u00a2122,401; seven assemblies were involved in the payment of VAT without VAT receipts valued at GH\u00a2 26,567.<\/p>\n District finance officers in trouble<\/strong> The report recommended that in \u201cthe absence of the appropriate supporting documents, the amount involved should be recovered from the coordinating directors and finance officers of the assemblies.\u201d<\/p>\n 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.<\/p>\n However, the Director of Waste Management and the MP for Manhyia South failed to retire a total amount of GH\u00a243,908 in imprests three to five months after undertaking supposed activities on behalf of the assembly.<\/p>\n \u201cThe tendency that the amount was not used in furtherance of the assembly\u2019s activities cannot be ruled out,\u201d it said.<\/p>\n The report recommended that \u201cfailure 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.\u201d<\/p>\n –<\/p>\n Source: Graphic Online<\/p>\n","protected":false},"excerpt":{"rendered":" Deficiencies in the operations of metropolitan, municipal and district assemblies (MMDAs) created avenues for some officials of the assemblies to mismanage funds and resources valued at approximately GH\u00a2 70.1 million, the 2016 Auditor-General\u2019s Report on the assemblies has revealed. The amount shows a 32 per cent (almost GH\u00a217 million) increase in the 2015 financial irregularities […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,11],"tags":[5882,3,222],"yoast_head":"\n
\nIn 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.<\/p>\n
\nCash irregularities totalling GH\u00a232,684,459.20 was recorded by the 216 assemblies.<\/p>\n
\nAccording to the report, a total amount of GH\u00a226,839,675.97 was noted as contract irregularities from the audits.<\/p>\n
\nThe report also stated that during the year, procurement and stores irregularity amounted to GH\u00a210,341,200.67.<\/p>\n
\nTax irregularities with a total value of GH\u00a2308,310.13 were identified in some assemblies, the report said.<\/p>\n
\nFourteen district finance officers of 14 assemblies\u2014Asante 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\u00a21,899,826.19 with the requisite expenditure documents such as invoices, receipts of payees and statements of claims.<\/p>\n