AG reveals financial irregularities to the tune of GHS 1.4bn in 2022
The 2022 Auditor-General on the Public Accounts of Ghana has brought to light a concerning revelation, with financial irregularities amounting to ¢1.412 billion for the year 2022. This figure marks a staggering increase of ¢332 million compared to the previous year’s recorded irregularities of ¢1.080 billion.
According to the report, tax irregularities constituted the lion’s share of the infractions, accounting for ¢1.247 billion or 88.3% of the total financial mismanagement reported. Among the notable tax irregularities, a significant portion of ¢327.63 million was attributed to 18 Oil Marketing Companies (OMCs) that defaulted in paying their rescheduled debts during the assessment period.
Additionally, the report highlighted an alarming amount of ¢361.677 million owed by 2,557 registered Value Added Tax (VAT) traders, further exacerbating the revenue collection challenges faced by the Ghana Revenue Authority (GRA). The report pointed to a lack of adequate measures and sanctions against defaulters as the primary reason for the persistence of these irregularities.
Cash irregularities, amounting to ¢57.471 million, accounted for 4.1% of the total infractions and affected multiple Ministries, Departments, and Agencies (MDAs). Unapproved disbursements, unpresented payment vouchers, unaccounted revenue, and other questionable transactions were among the identified issues. The Auditor-General strongly recommended that the Chief Executive Officers and Directors of Finance take immediate action to repay the misappropriated funds, considering the absence of proper payment vouchers and supporting documentation.
Furthermore, the report highlighted a concerning trend in indebtedness, loans, and advances, amounting to ¢89.744 million, representing 6.4% of the total irregularities. Of note, an outstanding amount of ¢1.763 million was owed by 72 farmers who received farm equipment on credit under the Ministry of Food and Agriculture’s Brazilian More Food Programme. The Auditor-General called for stringent measures to ensure the recovery of the outstanding amount from the beneficiaries.
Payroll irregularities, totaling ¢14.254 million, raised further alarms. Notably, ¢1.922 million was erroneously paid as unearned salaries to 95 individuals from an institution under the Ministry of Health. The report emphasized the urgent need for the Regional Health Director and the Medical Director to take swift action in recovering the total amount without delay.
The audit, which covered the period from January 2022 to December 2022, aimed to assess the risk associated with the management and utilization of public resources while ensuring fairness and integrity in administrative decision-making and stakeholder interactions.
As the report sheds light on the magnitude of financial irregularities, it underscores the pressing need for the Ghana Revenue Authority to enhance its monitoring and supervision of staff, particularly in dealing with defaulters. Furthermore, the identified cases of misappropriation demand prompt action to recover the misused funds and strengthen internal control mechanisms across government agencies.
In light of these findings, the authorities are urged to prioritize transparency, accountability, and robust oversight in managing public funds, safeguarding the economic wellbeing of the nation and bolstering investor confidence.
