2021 A-G report: Over GHC1 billion lost to irregularities at MDAs

The 2021 Auditor General’s report has disclosed that the state lost some GH¢1,080,913,824 to various irregularities at the Ministries Departments and Agencies.

This figure, is however, a significant drop in the GHc 2,053,176,449 recorded in 2020.

The irregularities according the to report “represent either losses that had been incurred by the State through the impropriety or lack of probity in the actions and decisions of public officers or on the other hand, the savings that could have been made, if public officials and Institutions had duly observed the public financial management framework put in place to guide their conduct and also safeguard national assets and resources”.

Findings of the report

The report revealed that, of the GH¢1,080,913,824 lost it irregularities in 2021, GHC 989,026,225 which translates to some 91.5% of the total losses was attributed to tax irregularities, an increase from the GHC694,386,436 recorded for tax irregularities in 2020.

This figure is mainly attributed to some GH¢402,804572 due from 28 Oil Marketing Companies (OMCs) who defaulted in paying to GRA their rescheduled debt
between January 2021 to December 2021 and a further GH¢249,800,802.00 in Outstanding duties and taxes on Oil lifted that 17 OMCs between January 2021 and December 2021, did not pay on 29,995,530 litres of oil they lifted to the Ghana Revenue Authority, Customs Division.

Additionally, total contract irregularities of GH¢1,559,424 was reported with GH¢1,188,816.00 of the figure being interest paid on delayed payments for contract certificates raised. This figure would be the a rather significant drop in the GHC171,364,190 worth of contract irregularities uncovered in 2020.

Also, a total amount of GH¢45,763,607 which represented 4.23 percent of the total irregularities was lost to cash irregularities.

These cash irregularities range from infractions such as unapproved disbursements, unpresented payment vouchers, unaccounted revenue, unsupported payment vouchers, funds to bank not credited, non-lodgement of public funds, misapplication of funds and unretired imprest.

The remaining irregularities are; Payroll irregularities amounting to GH¢5,583,498.00 which included some unearned salaries totalling GH¢1,501,740.00 paid to 146 officers of 47 Institutions under Ministry of Health, rent irregularity of GH¢7,710,925.00 which included GH¢600,013.00 due from government workers from 13 Health Institutions who defaulted in the payment of rent and US$993,600.00 due government from 48 occupants of the United Nations Development Programme (UNDP) flats, Total Indebtedness/Loans/Advances due the state amounting to GH¢30,758,576 represented 2.8 per cent of the total irregularities and Stores and procurement irregularities noted during the period amounting to GH¢511,569.00.