Financial irregularities flourish as PAC’s recommendations are shelved

A study conducted by the Ghana Anti-Corruption Coalition (GACC) has revealed that recommendations made by the Public Accounts Committee (PAC) of Parliament over the years have not been implemented by metropolitan, municipal and district assemblies (MMDAs).

This is because the reports of the committee do not get to the MMDAs and even if they do, they arrive after many years have elapsed. 

In addition, there is no feedback from the PAC regarding the submission of final reports to the audited organisations.

These have contributed to the flourishing of financial irregularities at the MMDAs, totalling GH¢6,187,846 from 2005 to 2007 and GH¢6,011,248.19 in 2011.

Disclosing this at the launch of a report on the study, Dr Patrick Osei-Kufour, a consultant at the University of Cape Coast, said: “The management of the MMDAs and the Audit Report Implementation Committees (ARICs) stated that they hardly ever received PAC reports, let alone follow up on them.

“The critical issue is the persistent non-compliance with the laws and regulations guiding the management of public accounts in Ghana.”

According to the report, titled: “Beyond the PAC Report: What Next?”, challenges facing the implementation of PAC reports included their intermittent nature, their irregular tabling on the floor of Parliament, the lack of will power on the part of the MMDAs to sanction officers cited for financial impropriety and poor record keeping by the MMDAs.

The report covers a first study conducted in 2011 and another in 2014. They spanned 2005 to 2011, a period of six years. 

Financial Irregularities

Quoting the Auditor-General’s report on the accounts for MMDAs for December 31, 2011, Dr Osei-Kufour said 71 MMDAs processed and made payments amounting to GH¢2,910,715.96 to individuals and organisations,  without accounting for them with relevant supporting receipts and invoices.

He listed some of the irregularities cited in some PAC reports as unsubstantiated payments, unauthorised contract variations, taxes not withheld, procurement irregularities, misapplication of the District Assemblies Common Fund and the award of contracts above authorised thresholds.

Recommendations

A seven-point recommendation proffered by the GACC to deal with the non-submission and application of PAC reports included the institution of capacity programmes for ARIC members, as stipulated in Section 30 (1) of the Audit Service Act, 2000 (Act 584), as well as a reconstitution of the membership of ARICs.