‘There was no wrongdoing in use of YEA funds’

The Ministry of Employment and Labour Relations (MELR) has defended the transfer of part of the Youth Employment Agency’s (YEA) budgetary allocation to pre-finance Ghana’s participation in the International Labour Organisation (ILO) Conference in 2015.

A statement from the ministry in reaction to some official documents circulating in the media about financial demands the ministry made on the agency said the ministry was clothed with the law in making the demand.

Accra-based Joy FM, which broke the story, said the sector minister, Mr Haruna Iddrisu, made “financial demands” on the YEA to finance his foreign travels.

The story said on two occasions, the minister requested GH¢129,089 and GH¢900,7545.68 for travels to ILO meetings in Geneva, Switzerland. 

But, the ministry’s statement, signed by Mr Iddrisu, explained that the money was not meant for the minister but to finance the country’s official delegation to the ILO Conference.

“It is normal practice within the Ghana Public Service for Ministries to depend on their agencies when they are in financial distress and can sometimes borrow for subsequent reimbursement subject to releases from the Ministry of Finance.

“Ghana’s participation in the ILO Conference and the official government delegation was officially sanctioned and approved by the office of the Chief of Staff by a letter dated May 18, 2015 to include social partners viz employers, representatives of organised labour and Members of Parliament,” the statement said.

Oversight responsibility
The MELR exercises oversight supervision over the YEA.

According to the ministry’s statement, in 2014 and 2015, the total receipts from the YEA to the ministry amounted to GH¢1,029,835.

“However, part of the expenditure was vired, contingent on the expectation of some payments and releases from the Ministry of Finance.

“This is in accordance with the Financial Administration Regulation (FAR) 2004 (LI 1802).

“We are not in breach of the law and we acted within the parameters of the YEA Act 2015 (Act 887), the PPA Act, 2003 (Act 663) and FFA, 2004 (Act 654),” the ministry explained.

It added that an amount of GH¢2 million had been budgeted for the ministry in 2016.

Disbursement of money
The ministry also indicated how the money it borrowed from YEA was disbursed.

“It is to be noted that the $230,960.43 had 50 per cent of it used for the payment of subscription arrears owed ILO and that of the African Regional Labour Administrative Centre (ARLAC), which amounted to $69,706 pending reimbursement by the Ministry of Finance, which was outstanding and in arrears,” the ministry said in the statement.

It said failure to pay the annual ILO and ARLAC subscriptions would have resulted in Ghana losing its voting rights at the 104th ILO Session in Geneva in June last year.

On how the rest of the amount was used, the ministry explained that it was spent to cover travel expenses of the 16-member Ghanaian delegation which included staff of the ministry, agencies of the ministry, some MPs from Parliament’s Select Committee on Employment and other social partners.

The statement said at the appropriate time, the activities of the YEA would be audited as required by law and the agency would respond to the audit findings accordingly.

Request to Finance Ministry
It stated that the MELR had requested the Ministry of Finance to reimburse it for the pre-financed activities.

“Finally it must be put on record that no vehicles have been purchased by the YEA for use by the MELR,” it added.