PFM Act: Internal Audit Agency pushes for sanctions on non-compliant public institutions to curb expenditure
The Internal Audit Agency (IAA) has urged the Ministry of Finance to wield sanctions against heads and governing boards of public institutions found in violation of the Public Financial Management Act.
This strategic move aims to rein in government expenditure and preclude budget overruns, according to Dr. Oduro-Osae, the Director-General of the IAA.
With the recent revelation of financial irregularities amounting to approximately ¢15 billion across state institutions, the 2022 Auditor General Report has underscored the urgency for stricter fiscal control.
Dr. Oduro-Osae made these assertions during the Institute of Chartered Accountants Ghana’s Post Mid-Year Budget Forum, where he advocated for the public naming and shaming of entities failing to submit required internal audit reports.
Emphasizing the impending repercussions for non-compliance, Dr. Oduro-Osae cautioned public sector accountants to exercise diligence, lest their organizations endure punitive measures imposed by the Ministry of Finance.
In tandem with its accountability drive, the IAA has uncovered a disconcerting trend of divergent birthdates among public sector workers, a practice that facilitates the inclusion of ‘ghost’ names on the government payroll, causing financial inefficiencies.
Dr. Oduro-Osae articulated the IAA’s proactive approach in curtailing these misappropriations, shifting the focus from post facto recovery efforts to the prevention of fiscal abuse.
While the Ministry of Finance is diligently working to rectify discrepancies within the government payroll system, the broader implications of such financial discrepancies necessitate sustained vigilance in streamlining the national fiscal landscape.
