Auditor-General’s recoveries hit GH¢31.5m - Money transferred to Consolidated Fund

The Recoveries Account created by the Auditor-General to streamline the collection of disallowed unearned salaries and other recoverable funds has accumulated GH¢31.5 million as of the end of last month. 

The money accruing to the account created in June 2022 at the Bank of Ghana (BoG) has since been transferred to the Consolidated Fund also held by the BoG.

The achievement marks a significant milestone in the nation’s efforts to enhance financial accountability and transparency.

The Recoveries Account was introduced as part of broader reforms by the Auditor-General’s Department to improve the recovery of misappropriated or unlawfully retained public funds.

Disallowed unearned salaries and allowances, which are imposed on public officials and institutions found to have caused financial loss to the state, are among the key sources of revenue for the account.

The initiative aims to ensure that such recoveries are efficiently collected, managed and utilised for national development.

The Auditor-General, Johnson Akuamoah Asiedu, in an interview with the Daily Graphic in Accra, highlighted the success of the special account, stating that it had simplified the process for recipients of such fees to comply with their financial obligations.

“The Recoveries Account has made it easier for individuals and institutions to pay recoverable amounts. It has also improved transparency and accountability in the management of public funds,” Mr Asiedu said.

He explained that GH¢31.5 million recovered so far underscored the effectiveness of the account in curbing financial malfeasance and recovering lost state resources.

The Auditor-General indicated that the transfer to the Consolidated Fund was in line with constitutional requirements to support national budgetary allocations and development projects.

The transfer aligned with Article 176 of the 1992 Constitution, which requires that all public revenues be paid into the Consolidated Fund, except as otherwise provided by law.

Recoveries

Mr Asiedu said the account had become a critical mechanism for ensuring that individuals and institutions found culpable in audit reports were held accountable and that the state recovered what was rightfully due it.

He further explained that the account was necessitated by the challenges previously faced in recovering surcharges and other funds.

“Before the introduction of the Recoveries Account, the process of recovering funds was often cumbersome and inefficient.

Delays in payments and lack of a centralised system made it difficult to track and manage recoveries.

This account has streamlined the process, making it more transparent and accessible,” the Auditor-General said.

Mr Asiedu also revealed that his office was working closely with other state institutions, including the Office of the Attorney-General, to amend the laws on surcharge to make it more implementable.

“We are committed to pursuing all outstanding recoveries and ensuring that those who have caused financial loss to the state are held accountable.

This is not just about recovering funds; it is about restoring integrity to public financial management,” the Auditor-General said. 

Public concerns

Despite the successes, challenges remain as some stakeholders have raised concerns about delays in the adjudication of cases involving surcharges, as well as the need for stronger enforcement mechanisms to ensure compliance.

Others have also called for greater public awareness and education on the importance of the Recoveries Account and its role in promoting accountability.

In response to the concerns, the Auditor-General assured the public that his office was working to address the bottlenecks in the recovery process.

“We are continuously collaborating with relevant stakeholders to improve efficiency. Our goal is to ensure that every pesewa spent is accounted for and used for the benefit of the people of Ghana,” Mr Asiedu said.

Article 187(7)(b) of the 1992 Constitution provides that in the performance of its functions, the Auditor-General might disallow any item of expenditure which is contrary to law and surcharge the amount of any expenditure disallowed upon the person responsible for incurring or authorising the expenditure.

Until June 2022, the Auditor-General's recommendations for recoveries of unearned salaries had always been directed to the Controller and Accountant-General's Suspense Account (CAGSA).

However, the CAGSA could not provide real-time information on those recoveries, making efforts to enforce the rules on surcharging and disallowances appear to be yielding less positive results.

In light of that challenge, the Auditor-General's Recoveries Account was opened to track and report on recoveries made in implementing audit recommendations on unearned salaries and allowances.

As of June 2023, the Auditor-General’s Recoveries Account received disallowed unearned salaries and allowances of more than GH¢11.52 million, out of which GH¢10 million was transferred into the Consolidated Fund.

As of the end of December 2023, the Auditor-General had remitted GH¢9.5 million retrieved from disallowed expenditures captured in different reports into the Consolidated Fund, bringing to GH¢19.5 million the total amount transferred into the Consolidated Fund during the 2023 financial year.

Every year, the Auditors-General’s reports to Parliament are replete with issues of infractions in the use of public funds.

In a 10-year study of the reports, the Daily Graphic gathered that irregularities in the accounts of public institutions amounted to a GH¢99.57 billion loss to the state.