TIG Post

Tag: Consolidated Fund

  • Stop diverting funds allocated to NHIA to Consolidated Fund – Gov’t told

    Stop diverting funds allocated to NHIA to Consolidated Fund – Gov’t told

    A Pharmacist and Research Fellow at the Ghana Centre for Democratic Development (CDD-Ghana), Kwame Sarpong Asiedu, has warned the Akufo-Addo government about the imminent danger of continuing to divert funds allocated to the National Health Insurance Authority (NHIA) into the consolidated fund.

    In an interview on Joy FM’s Super Morning Show, Asiedu stated that this diversion threatens the sustainability of healthcare services in Ghana, as hospitals require these funds to operate effectively.

    “We know from parliamentary documents that they [NHIA] had only 6% of releases in a particular year. We also know that this government has capped the funding they can receive even though citizens are making the statutory payment. When you go and buy anything, you pay for your NHIS levy among the taxes but they are not receiving the money so they also can’t pay.

    “Our health system is 75 to 80% dependent on forex because a lot of the consumables are imported whether they are being used in hospitals, pharmacies, and medical laboratories. So they are losing money, because if you’ve not been paid since October of last year what was the dollar then and what is the dollar now? The true value of whatever service you [hospitals] gave has reduced,” he said on Wednesday.

    Mr. Asiedu further indicated that this financial strain on health facilities threatens Ghana’s commitment to achieving universal health coverage by 2030, a key component of the Sustainable Development Goals (SDGs).

    He warned that health facilities may be compelled to refuse patients who present NHIA cards, instead requiring upfront payment before providing care. Asiedu believes this move would undermine the efforts invested in attaining universal health coverage.

    “Ghana has signed up to provide universal health coverage to all citizens by 2030 as part of the SDG. The key thing about this universal health coverage is that finance should not be a barrier to the obtaining of healthcare. It doesn’t mean that healthcare shouldn’t be paid for, but it means, at the point of need, you shouldn’t be denied access because of lack of funds.

    “So the worst case scenario is that Ghana wouldn’t be able to achieve this goal because that fundamental requirement that money should not be a barrier is not being met. So, basically we are paying lip service. With the way things are going with the NHIS, in a while, you’ll go to private hospitals and healthcare providers won’t be able to provide healthcare when you come with NHIA card,” he projected.

    The CDD-Ghana fellow also noted that citizens’ plight would worsen, given the current high inflation and cedi depreciation, if they are forced to resort to out-of-pocket payments for healthcare.

    Mr. Asiedu called for an immediate cessation of the fund capping, arguing that the government should prioritize healthcare funding over the consolidated fund, especially in an election year.

    “Government has been collecting the NHIS taxes. This has nothing to do with the IMF because when we buy something, we pay the NHIS tax, so all what government needs to do is to send the money back to where it belongs which is the NHIA.

    “Give the money back to NHIA so that they can use it to do what they are supposed to. It is a very easy fix, but the complication is that, if they do that there will be a massive hole in the consolidated fund and they are prioritising the consolidated fund in an election year at the expense of our health and expected life span.”

  • Auditor-General pays GH¢9.5m into Consolidated Fund

    Auditor-General pays GH¢9.5m into Consolidated Fund

    The Auditor-General has transferred GH¢9.5 million, obtained from disallowed expenditures highlighted in various reports, into the Consolidated Fund.

    This brings the total amount transferred to the Consolidated Fund to GH¢19.5 million during the 2023 fiscal year from the special account, known as the ‘Auditor-General’s Recoveries Account,’ established at the Bank of Ghana (BoG) in June 2022. As of the end of December 2023, the account had accumulated over GH19.7 million.

    The funds recovered are associated with expenditure disallowances related to unearned salaries and other financial recoveries reported to Parliament through various Auditors-General’s reports.

    Protecting public purse

    The Auditor-General, Johnson Akuamoah Asiedu, revealed to Graphic Online/Daily Graphic in Accra last Wednesday that the dedicated account was established with the specific goal of safeguarding public funds. It serves to monitor the real-time progress of recoveries made through expenditure disallowances.

    “The Auditor-General’s Recoveries Account was opened at the Bank of Ghana in June 2022, mainly to receive unearned salaries and allowances recovered,” he said. 

    Mr Asiedu said that until June 2022, the Auditor-General’s recommendations for recoveries of unearned salaries had always been directed into the Controller and Accountant-General’s Suspense Account (CAGSA). However, he said the CAGSA could not provide real-time information on those recoveries, making efforts of enforce the rules on surcharging and disallowances appear to be yielding fewer positive results. 

    “It is in the light of this that the Auditor-General’s Recoveries Account was opened to track and report on recoveries made in implementing audit recommendations with regard to unearned salaries and allowances,” Mr Asiedu said. 

    Infractions

    Each year, the Auditor-General’s reports to Parliament were often replete with issues of infractions in the use of public funds. 

    Article 187(7)(b) of the 1992 Constitution provided that in the performance of its functions, the Auditor-General might disallow any item of expenditure which was contrary to law and surcharge the amount of any expenditure disallowed upon the person responsible for incurring or authorising the expenditure. 

    Disallowance of expenditure normally leads to the Auditor-General recommending recovery from individuals, public officers and institutions that committed infractions. 

    It was through the same process of disallowing expenditure contrary to law that the service recovered over GH¢2.2 billion between 2017 and 2020.

    Timely reports

    Mr. Asiedu mentioned that the Auditor-General’s Office had fulfilled the constitutional requirement by submitting 22 audit reports to Parliament in 2023. He highlighted that the effective measures implemented at the Audit Service under the current administration have consistently yielded positive outcomes.

    This has facilitated the Auditor-General’s ability to submit audited reports to Parliament within the constitutional deadline for three consecutive years. As a result, 18 audit reports were presented in 2021, 15 reports in 2022, and 22 reports in 2023, underscoring the significance of timely production of audited reports.

    Appreciation

    The Auditor-General expressed appreciation to the government and the Minister of Finance for the timely release of funds to the Audit Service to facilitate the discharge of its constitutional mandate.

    “I also thank the staff of the Audit Service for their diligent and dedicated work.

    “The Audit Service will continue to promote good governance, transparency, accountability and probity in the country’s public financial management system,” Mr Asiedu added.

  • COVID-19 Trust Fund concludes operations, transfers GHC7.4m to Consolidated Fund

    COVID-19 Trust Fund concludes operations, transfers GHC7.4m to Consolidated Fund

    The COVID-19 Trust Fund established to mobilise support to complement the government’s efforts in the fight against the pandemic has completed its work and paid the remaining GHC7.4 million into the Consolidated Fund.

    During its operational period of three and a half years, the fund garnered a combined total of GHC65,467,911.71, which encompassed both monetary contributions and in-kind donations. Out of this sum, GHC58,020,508.91 was allocated and utilized for significant projects, programs, activities, and interventions.

    The Chairperson of the fund, Justice Sophia A.B.Akuffo,who made this known to journalists at the offices of the fund within Jubilee House in Accra, said the payment was in accordance with Section 23 of Act 1013 establishing the fund.

    The seven-member Board of Trustees inaugurated by President Nana Addo Dankwa Akufo-Addo on April 8,2020, was charged with the responsibility to manage the contributions received, both in cash and in kind.

    It was also to support those who were directly engaged in the combat of the pandemic,and those infected with or afflicted by the COVID-19 disease, particularly the socially needy and vulnerable.

    Justice Akuffo explained that the trust contracted the Ghana AntiCorruption Coalition (GACC) to conduct a study on the governance structure, sources of funding and legal regime at a cost of GH¢150,600.00.

    That,she explained,was to ensure that a future institution could function on a broader basis as a conduit for receiving and managing resources to support the management or combat of any future medical emergency similar to the COVID– 19 pandemic.

    Public Records

    She added that an amount of GHC27.7 million had been paid to the Public Records and Archives Administration Department (PRAAD) to keep and all the relevant records of the Trust Fund for future referencing by any member of the public who desired to conduct research into the Trust Fund.

    “The Fund has also made an additional contribution of GHC361,693.45,as a top-up (arising from price escalations) to the initial amount given to Cape Coast Teaching Hospital to ensure the completion of the rehabilitation of their Isolation Centre,” she added.

    Furthermore,the Noguchi Memorial Institute for Medical Research (NMIMR) and the Veterinary Services Directorate of the Ministry of Agriculture were supported with a total amount of GHC7.5 million to purchase reagents through the Ministry of Health to enhance testing for the virus during the heat of the pandemic.

    Support

    Justice Akuffo announced that the fund provided various support towards construction,rehabilitation and equipping of COVID-19 care management centres,isolation centres, hospitals and other medical facilities to the tune of GHC8,637,280.56.

    The beneficiaries,she stated,were the National Infectious Disease Centre in Ga East,Pantang Hospital,Cape Coast Teaching Hospital and the Greater Accra Regional Hospital.

    She commended Ghanaians for their generosity.

    She explained that 85 per cent of all contributions to the fund came within the first three months of its establishment.

    Justice Akuffo said the fund acquired and distributed PPE to a cumulative total value of GH¢22.1 million to 56 regional,municipal and district hospitals; COVID-19 Care Management Centres,Isolation Centres; eight Testing Centres; and about 226 CHPS compounds across the length and breadth of the country.

    She also included the support given to the School Reopening  Committee to procure PPE for distribution to students in tertiary institutions.