The 2022 Auditor-General’s report on the Public Accounts of Ghana revealed that approximately ¢1.412 billion were recorded as financial irregularities in that year.
This figure represents an increase of ¢332 million compared to the ¢1.080 billion reported in 2021.
The financial irregularities encompass various categories, including Tax Irregularities (¢1.247 billion), Cash Irregularities (¢57.471 million), Indebtedness/Loans/Advances (¢89,744 million), Payroll Irregularities (¢14.254 million), Stores/Procurement Irregularities (¢321,950), Rent Irregularities (¢2.142 million), and Contract Irregularities (¢556,333).
Tax Irregularities
Tax irregularities accounted for a significant portion of the total financial infractions, amounting to ¢1.247 billion, which constituted 88.3% of the reported cases.
This figure included a sum of ¢327.63 million owed by 18 Oil Marketing Companies (OMCs) that defaulted in paying their rescheduled debt between January 2022 and December 2022.
Additionally, ¢361,677 million was found to be owed by 2,557 registered VAT traders during the assessment period.
The report attributed these irregularities mainly to the Ghana Revenue Authority’s failure to take appropriate measures and sanctions against defaulters among the OMCs and registered VAT traders.
In response to these findings, the Auditor-General advised the Commissioner General of the Ghana Revenue Authority (GRA) to enhance the monitoring and supervision of staff to address these issues effectively.
Cash Irregularities
The sum of ¢57.471 million accounted for 4.1% of the total irregularities and constituted the total cash irregularities during the period. These irregularities were observed across various MDAs and were attributed to several factors, including unapproved disbursements, unpresented payment vouchers, unaccounted revenue, unsupported payment vouchers, funds not credited to the bank, non-lodgement of public funds, embezzlement of funds, and unretired imprest.
In light of the absence of payment vouchers and supporting documents, the Auditor-General recommended that the Chief Executive Officer and the Director of Finance be held responsible for repaying the money.
Indebtedness/Loans/Advances
Total Indebtedness/Loans/Advances amounting to ¢89.744 million represented 6.4% of the total irregularities.
A significant amount of these irregularities was ¢1.763 million owed by 72 farmers who received farm equipment on credit basis under the Ministry of Food and Agriculture’s Brazilian More Food Programme. 24.
The report recommended that the Chief Director ensure that the Head of Tractor Accounts recovers the outstanding amount of ¢1.763 million from the beneficiaries.
Payroll Irregularities
An amount of ¢14.254 million was recorded as payroll irregularities during the reviewed period.
Within the total payroll irregularities, ¢1.922 million represented unearned salaries paid to 95 unidentified individuals from an institution under the Ministry of Health.
In response to these findings, the Auditor General recommended that the Regional Health Director and the Medical Director promptly initiate the recovery process for the full amount.
The audit covered the period from January 2022 to December 2022.
The audit objectives included reviewing the internal control and internal audit functions to assess the risks associated with the management and utilization of public resources. It also aimed to determine the presence of fairness and integrity in administrative decision-making and interactions with stakeholders.