Auditor-General recovers unearned salaries; GHS 11.52m retrieved as disallowance
Ghana’s Auditor-General’s Recoveries Account, designed to capture disallowed unearned salaries and allowances, has amassed a staggering GH¢11.52 million in just over a year. The specialized account, established at the Bank of Ghana in June last year, aims to ensure real-time monitoring of recoveries made through expenditure disallowances and safeguard the nation’s public finances.
Of the substantial sum collected, GH¢10 million has been seamlessly transferred from the account into the Consolidated Fund, underscoring the importance of this initiative in preserving fiscal integrity.
The Auditor-General, Mr. Johnson Akuamoah Asiedu, revealed the impressive figures during an exclusive interview with the Daily Graphic in Accra. He asserted that the establishment of the dedicated account was instrumental in tracking and reporting on recoveries related to unearned salaries and allowances, which had previously been directed to the Controller and Accountant-General’s Suspense Account (CAGSA). However, the CAGSA proved incapable of providing real-time information on recoveries, impeding effective enforcement of rules on disallowances and surcharges.
Article 187(7)(b) of Ghana’s 1992 Constitution grants the Auditor-General the authority to disallow any expenditure that violates the law and to surcharge the responsible parties accordingly. Despite facing challenges in enforcing these regulations, some surcharges have been successful, leading to significant recoveries. Notably, the Auditor-General’s office managed to recover GH¢67.32 million from public officers, individuals, and institutions found to have committed financial infractions in the course of their duties, according to the Special Audit Report on Disallowance and Surcharge.
Mr. Asiedu elucidated the difference between disallowances and surcharges, with disallowances resulting in recommendations for recovery from individuals or entities responsible for financial infractions. Surcharges, on the other hand, often lead to legal proceedings, involving thorough forensic examinations to gather admissible evidence. He further outlined the meticulous process of issuing a notice of intention to surcharge, granting the affected party 14 days to respond. In cases where satisfactory evidence is not provided, a surcharge certificate is issued, followed by an additional 60 days for the affected party to contest the decision. Unresolved cases are then handed over to the Attorney-General for prosecution.
As part of their commitment to enhance recovery efforts, the Auditor-General’s office continues to prioritize staff training in gathering audit evidence acceptable in court. Additional avenues have also been adopted to retrieve all recoverable disallowed expenditures, including unearned salaries and allowances. All other recoveries are directed to audited entities and the Ghana Revenue Authority in line with recommendations in various Auditor-General reports.
Mr. Asiedu expressed gratitude for the government and the Ministry of Finance’s prompt release of funds, which have enabled the office to carry out its mandate effectively. He reiterated the service’s unwavering commitment to promoting transparency, accountability, and probity in Ghana’s public financial management system.
