The latest Auditor-General’s reported has revealed that payroll irregularities amounted to GH¢8.24 million as of December 2021.
These, according to the report, were caused by the failure of management to exercise due diligence, and the tolerance of officers in charge of payroll validation in reviewing payment vouchers to ensure salaries were paid to only those who were entitled as well as payroll related irregularities.
The report also added that there were also caused by management’s failure to notify banks to stop the payment of unearned salaries.
“The Controller and Accountant-General’s Department also did not promptly delete names of separated staff when notified to do so. In other instances, Management also did not transfer statutory deductions in respect of PAYE taxes and SSF contributions”, it mentioned.
According to the report, an amount of GH¢2.99 million attributed to Ghana Broadcasting Corporation in respect of avoidable pending judgement debt due to the termination of appointment of a former Director-General, judgement debt for the failure to pay long service award to employees, payment of unearned salaries and the late payment of 1st and 2nd tier pension contributions.
The Auditor General’s report therefore advised the management teams of the affected Institutions to promptly notify the bankers of the separated staff to withhold and pay to the government chest all unearned salaries.
It also recommended that officers in charge of payroll should exercise due care in the discharge of their duties as well as ensuring that 1st and 2nd tier contributions for their employees are promptly and regularly transferred to the various pension schemes.
Procurement irregularities
Procurement irregularities in 2021 amounted to GH¢306.76 million.
These irregularities, the report said, occurred as a result of managements’ non-compliance with the provisions of the Public Procurement Act, 2003 (Act 663) as amended.
Out of the total irregularities, GH¢219.35 million represented items procured without recourse to the Public Procurement Authority (PPA) by the Electricity Company of Ghana.
The report again recommended that managements of the various Institutions should undertake procurement transactions strictly in accordance with the provisions of the Public Procurement Act as amended.
Tax irregularities
The Tax irregularities related to failure to pay statutory tax deductions on due dates, and non-deduction of applicable taxes.
They also related to transacting business with non-VAT registered persons or entities.
Out of the total tax irregularities of GH¢23.57 million, an amount of GH¢23.19 million was attributed to ECG for delayed remittance of P.A.Y.E and withholding taxes and the non-deduction of withholding taxes and withholding VAT.
The report recommended that the Finance Officers should strictly adhere to the tax laws to ensure that all tax revenues are promptly collected and paid to the applicable revenue agencies on due dates.
Contract irregularities
These are mainly related to the payment for construction projects not undertaken by various Public Boards, Corporations and other Statutory Institutions.
Included in the irregularities figure of ¢283.77 million is an amount of $36.89 million (¢221.568 million) paid by the Social Security and National Insurance Trust (SSNIT) to a contractor in excess of work performed on a project.
The report therefore urged managements to strengthen controls over contracts and ensure that funds are available in order to engender speedy completion of earmarked projects and ensure that payments are made for work done.
