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Introduction
The 2023 Auditor General’s report on Ghana’s public sector exposes several financial irregularities and mismanagement. The report covers the 2022 financial year of fiscal indiscipline across government institutions, from unauthorised payments to procurement lapses. As a result, the call for stringent oversight and reform has never been more urgent.
Consequently, DUBAWA dives into the details and gives highlights of the audit report, which aims to steer the nation towards greater accountability and transparency. Key public institutions, including the Electricity Company of Ghana (ECG), the Ministry of Gender, Children and Social Protection, and the National Secretariat of Ghana School Feeding Programme, will be examined.
Ministry of Gender, Children, and Social Protection
Under this ministry is the Livelihood Empowerment Against Poverty (LEAP) Management Secretariat. This secretariat implements a social intervention initiative launched by the Government of Ghana in 2008. The programme aims to provide financial assistance and social support to the country’s poorest and most vulnerable households. The primary goal of LEAP is to reduce extreme poverty by providing direct cash transfers to households living below the poverty line.
The report disclosed that the secretariat was uncooperative in providing the financial data necessary to evaluate expenditures. Additionally, it highlighted that the secretariat failed to remove beneficiaries whose socioeconomic status had improved, resulting in the disbursement of GH¢396,620 to individuals who no longer qualified for the programme.
“We also noted that LMS did not conduct reassessments of LEAP beneficiaries as required. Despite identifying positive impacts of the programme, LMS failed to graduate or exit beneficiaries even when their socioeconomic status had improved. This led to payments of GH¢396,620.00 to beneficiaries who no longer qualify to be on the programme,” the report said.
The report also revealed that the secretariat disbursed over GH¢80,000 to 44 caregivers of deceased beneficiaries.
“We found that LMS paid cash grants to caregivers of deceased beneficiaries in one-member households, resulting in payments to 44 deceased beneficiaries amounting to GH¢84,480.00.”
National Secretariat of Ghana School Feeding Programme
Launched in 2005, the Ghana School Feeding Programme now provides meals to over 4 million students in 12,000 public basic schools, spanning all 216 districts nationwide. The aim is to provide pupils daily access to meals to encourage more children to attend school and increase enrolment. The audit, covering the period from 2017 to 2022, raised significant concerns about the nutritional value of the food provided by the caterers. It found that the meals served were often insufficient to meet the pupils’ dietary needs and that some caterers did not use wholesome ingredients to prepare the meals.
“We found during our visit to the schools that food served by the cooks was not adequate to sustain the pupils through the instructional period or school day. We found during our visits to the schools that not all the caterers used wholesome food items to prepare meals,” the report revealed.
The report also revealed a financial irregularity, resulting in an overpayment of GH¢2.3 million to non-contract food suppliers.
“Regarding payment, we noted that wrongful payments were made to caterers who were not under contract for the Programme to the tune of GH¢274,235.29, and an outstanding GH¢831,776.00 realised from the sale of the Caterer Application Forms was not accounted for,” the report revealed.
In its recommendation, the Auditor-General urged the National Coordinator to implement measures to identify, retrieve, and recover all outstanding overpayments and wrongful payments made to caterers.
Electricity Company of Ghana
Despite its efforts, the Electricity Company of Ghana (ECG), tasked with power distribution and ensuring payments for power usage, has faced significant challenges. The Auditor General’s report highlighted discrepancies in accounting for power consumption and procurement processes.
According to the report covering operations from 2017 to 2021, ECG failed to prioritise Value for Money in procuring meters. It was found that ECG had entered into 50 contracts for the procurement of over 800,000 meters and related accessories without complying with the Public Procurement Act.
The report recommended that ECG immediately subject all procurement activities to the requirements of the Public Procurement Act. Additionally, it advised the Head of the Procurement Unit to closely monitor the delivery schedule of meter contracts and promptly re-award any delayed contracts to prevent meter supply shortages.
Conclusion
The Auditor-General’s report calls for strict implementation of its recommendations to enhance financial discipline and mitigate future irregularities. The findings highlight systemic issues in financial management and procurement, requiring comprehensive reforms to improve accountability and governance in the public sector.
