MMDCEs MUST STUDY PUBLIC PROCUREMENT, FINANCIAL MEMORANDA August 30, 2011
BY PETER ATOGEWE WEDAM
ISD-BOLGATANGA MUNICIPAL
The Chairman of the Public Accounts Committee [PAC] of parliament Hon. Albert Kan-Dapaah, has urged all Municipal, Metropolitan and District Chief Executives [MMDCEs] to study and grasp Ghana’s prescribed public sector accounting systems and the financial memoranda of state. They should also be educated on public procurement and the need for due diligence in receiving and usage of public resources.
The PAC Chairman was delivering his closing remarks at Bolgatanga after the committee reviewed the Auditor General’s report on 31 municipal, metropolitan and district assemblies from the Upper East, Upper west and Northern regions. The two-day sitting cross-examined the accounts and expenditures of the assemblies covering the period 2005 to 2007.
Hon. Kan-Dapaah explained that the essence of the committee’s sittings in the regions is to reach out to many members of the public in order to make them appreciate and understand the work of the PAC of parliament. He said having uncovered several instances of financial indiscipline such as unsubstantiated payments, misappropriation and misapplication of state funds at the various assemblies, it is now the duty of the audit report implementation committees at the various assemblies to ensure that offending officers are sanctioned and made to pay back with interest all state monies they either misapplied or diverted.
According to Hon. Kan-Dapaah, the Auditor General’s report indicated that the state lost GH c1.2 million in the Northern region and about GH c338,000.oo in the Upper East region whilst in the Upper West region, GH c920,000.oo was lost all resulting from misappropriation and misapplication of public funds without recourse to the financial memoranda of state.
For instance, the Zabzugu-Tatale District of the Northern region made advance payments of GH c29,233.oo to contractors without bank guarantee whilst it made unauthorised payments of GH c7,263.oo without the signature of the authorising officer. Hon. Kan-Dapaah who was unhappy with the level of lose internal control measures at the assemblies, also rated the Zabzugu-Tatale district as the second district with high number of queries in the Northern region.
The East Mamprusi district also in the Northern region was found liable for paying GH c14,000.oo to a contractor for the supply of furnishing items which were not delivered within the agreed contract time frame but rather at a later date at higher cost which the assembly paid the difference. The PAC questioned the DCE, Mr. Adam Imoro why his assembly made such huge payments for no job done.
Assisted by his district coordinating director, Mr. Imoro explained that the assembly pressed the contractor who then supplied the items including five TV sets with corresponding TV stands, five queen size mattresses and beds, two cylinders and accessories, air conditioners among others adding that he inspected the items and was satisfied with their quality. But PAC members chastised the DCE saying the district engineer or public works officer was the right technocrat to examine the items. Meanwhile, the East Mamprusi district further made unsubstantiated payments of GH c218,282.oo.
In another revelation, the Lawra district in the Upper West region could not account for GH c21,432.oo which it lost through loans and advances while unsubstantiated payments of over GH c10,000.oo was also revealed but the DCE, Mr. Samson Abu said over GH c26,000.oo of total monies lost have been recovered as at July 31, 2011. At this instant, Hon. John Akologo Tia a member of PAC advised the DCE to publish the names of all defaulters and follow it with court action to recover all monies owed to the state.
In the Upper East region, the auditor general report disclosed that Bolgatanga Municipal Assembly lost over GH c16,000.oo in unrecovered loans but the Municipal finance officer Alhaji Abdul Mumuni Jaswinde told the PAC as at December 24, 2010, all the assembly recovered all monies lost through irregularities. However, the assembly was tasked to recover every dime it gave out to beneficiaries under the poverty alleviation fund to the tune GH c75, 000.oo
Other districts in the Upper East region including the Kassena-Nankana East district was found to have made unsupported payments of GH c97,526.24 while the Bongo district, which had only one query told the PAC that it was able to recover all monies lost through rents, impresses and advances totaling GH c2, 142.oo with an outstanding balance of only GH c25.oo.
BY PETER ATOGEWE WEDAM
ISD-BOLGATANGA MUNICIPAL
The Chairman of the Public Accounts Committee [PAC] of parliament Hon. Albert Kan-Dapaah, has urged all Municipal, Metropolitan and District Chief Executives [MMDCEs] to study and grasp Ghana’s prescribed public sector accounting systems and the financial memoranda of state. They should also be educated on public procurement and the need for due diligence in receiving and usage of public resources.
The PAC Chairman was delivering his closing remarks at Bolgatanga after the committee reviewed the Auditor General’s report on 31 municipal, metropolitan and district assemblies from the Upper East, Upper west and Northern regions. The two-day sitting cross-examined the accounts and expenditures of the assemblies covering the period 2005 to 2007.
Hon. Kan-Dapaah explained that the essence of the committee’s sittings in the regions is to reach out to many members of the public in order to make them appreciate and understand the work of the PAC of parliament. He said having uncovered several instances of financial indiscipline such as unsubstantiated payments, misappropriation and misapplication of state funds at the various assemblies, it is now the duty of the audit report implementation committees at the various assemblies to ensure that offending officers are sanctioned and made to pay back with interest all state monies they either misapplied or diverted.
According to Hon. Kan-Dapaah, the Auditor General’s report indicated that the state lost GH c1.2 million in the Northern region and about GH c338,000.oo in the Upper East region whilst in the Upper West region, GH c920,000.oo was lost all resulting from misappropriation and misapplication of public funds without recourse to the financial memoranda of state.
For instance, the Zabzugu-Tatale District of the Northern region made advance payments of GH c29,233.oo to contractors without bank guarantee whilst it made unauthorised payments of GH c7,263.oo without the signature of the authorising officer. Hon. Kan-Dapaah who was unhappy with the level of lose internal control measures at the assemblies, also rated the Zabzugu-Tatale district as the second district with high number of queries in the Northern region.
The East Mamprusi district also in the Northern region was found liable for paying GH c14,000.oo to a contractor for the supply of furnishing items which were not delivered within the agreed contract time frame but rather at a later date at higher cost which the assembly paid the difference. The PAC questioned the DCE, Mr. Adam Imoro why his assembly made such huge payments for no job done.
Assisted by his district coordinating director, Mr. Imoro explained that the assembly pressed the contractor who then supplied the items including five TV sets with corresponding TV stands, five queen size mattresses and beds, two cylinders and accessories, air conditioners among others adding that he inspected the items and was satisfied with their quality. But PAC members chastised the DCE saying the district engineer or public works officer was the right technocrat to examine the items. Meanwhile, the East Mamprusi district further made unsubstantiated payments of GH c218,282.oo.
In another revelation, the Lawra district in the Upper West region could not account for GH c21,432.oo which it lost through loans and advances while unsubstantiated payments of over GH c10,000.oo was also revealed but the DCE, Mr. Samson Abu said over GH c26,000.oo of total monies lost have been recovered as at July 31, 2011. At this instant, Hon. John Akologo Tia a member of PAC advised the DCE to publish the names of all defaulters and follow it with court action to recover all monies owed to the state.
In the Upper East region, the auditor general report disclosed that Bolgatanga Municipal Assembly lost over GH c16,000.oo in unrecovered loans but the Municipal finance officer Alhaji Abdul Mumuni Jaswinde told the PAC as at December 24, 2010, all the assembly recovered all monies lost through irregularities. However, the assembly was tasked to recover every dime it gave out to beneficiaries under the poverty alleviation fund to the tune GH c75, 000.oo
Other districts in the Upper East region including the Kassena-Nankana East district was found to have made unsupported payments of GH c97,526.24 while the Bongo district, which had only one query told the PAC that it was able to recover all monies lost through rents, impresses and advances totaling GH c2, 142.oo with an outstanding balance of only GH c25.oo.
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