Auditor- General stops C5.4m payment for contracts by Mnistries, MDAs

Mr. Daniel Domelevo, Auditor-General

Mr. Daniel Domelevo, Auditor-General

The Auditor-General has prohibited the payment of about GHȼ 5.4 billion as supposed government debt for contracts undertaken by the various Ministries, Departments and Agencies (MDAs).

According to the him, while there was lack of relevant documentation such as invoices and procurement records to substantiate the payment of claims, other bills presented had already been paid for.

Additionally, the rejection was also premised on the fact that some goods had not been supplied to the contracting agencies while others were projected cost of contracts yet to be awarded.

Mr. Daniel Yaw Domelevo, the AG, disclosed this at a press briefing in Accra yesterday to officially release the 2017 Auditor General’s Report spanning financial year ending December 31, 2016.

It was to ascertain the genuineness of outstanding commitments government owed following claims that it was indebted to the tune of GH ȼ11 billion which was more than its budgetary allocation.

The Ministry of Finance in the 2017 budget hearing had indicated that the outstanding liabilities with its associated cost would negatively have an impact on government finances and reduce its ability to execute development projects.

The report revealed that after the validation exercise to match up figures submitted to the MoF by the various MDAs, a total of GHȼ 6,331,326,592.29 was certified for payment out of liability cost of GHȼ 11,810,579,603.55.

This means that a total of GH ȼ 5,479,253,011.26 has been spared to be invested into other governmental projects.

The report attributed the discrepancies to attitudes including poor records keeping, weak internal auditing including non-certification of liabilities by internal auditors, award of contracts with unfavorable contract terms and lack of effective monitoring of contracts.

It was also appalled that some MDAs were ignorant of their statutory obligation to protect the public purse by producing records of transactions in line with the Financial Administration Regulations, 2004.

The report recommended among others that government pays close attention to internal auditing in the public sector to ensure that practitioners became staff of the Internal Audit Agency to minimise the risk of wrongful payments and expenditure.

It also called for the necessary disciplinary actions to be taken against public officers who presented fraudulent and unsubstantiated claims to the Ministry of Finance for payment.

Mr. Domelevo in a media interview vowed to activate all ‘the powers’ within his mandate to deter public servants from misusing public funds.

He said that the era of leaving issues to the wind was over as he was going to vigorously apply the law including seeking a fiat from the Attorney General to prosecute persons who misuse public funds.





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