…As management pay monies to ‘ghost’ staff, companies
Posted: The Chronicle Thursday, January 29, 2009.
By Charles Takyi-Boadu
By Charles Takyi-Boadu
Though the management of Tema-based stevedoring company, Golden Gate Services Limited (GGSL), headed by Mr. Bennet Aboagye have embarked on an intensive face-saving media campaign over the last couple of days to safeguard its interests, there are still lingering questions of financial impropriator hanging on its neck.
A forensic audit report conducted by Messrs. Baffour Awuah and Associates at the instance of the Auditor-General continues to unearth damning findings on the activities and operations of the company.
In the course of its investigations, the auditors detected that huge amounts of monies mostly in dollars denominations had gone unaccounted since management could not reconcile the amounts involved with any documentary evidence whatsoever.
For instance, it was uncovered that during the period of February 23, 2005 to December 20, 2007, cash withdrawals totalling US $184, 354.03 were made from various bank accounts of GGSL, allegedly to pay salaries of the company’s staff.
However, a review of the company’s payroll, salary vouchers and a statement of account on the sale of dollars presented to the auditors by management revealed that for the period under review, the payment of management and staff salaries were made from cedi bank accounts of GGSL through the bankers of the management and staff.
The auditors were therefore unable to obtain documentary evidence from management on how the amounts involved were paid and to whom they were paid to.
In the absence of any documentary evidence to prove the otherwise of its findings, the auditors recommended that the amount of US $184, 354.03 should be recovered from the company’s Commercial and Administrative Manager, Mr. Rudolf Engmann.
Additionally, an amount of US $85,000.00 was alleged to have been exchanged for cedi equivalent from Index Link to pay for the wages of Ghana Dock Labour Company (GDLC).
However, there was not a single document to either confirm or prove that GDLC indeed received either the US $85,000.00 or its cedi equivalent.
It was again recommended that Mr. Engmann be made to refund the amount involved.
Similarly, management of GGSL failed to account for a total cash withdrawal of US $83, 500.00 allegedly paid as ‘special stevedore consultancy fees’ on five vessels during the period of December 2005 to December 2006 since management could not provide any documentary evidence in that regard.
It also emerged that from the period of June 13, 2002 to November 20, 2007 management of the company withdrew a total amount of US $187, 439.11 from various GGSL bank accounts, including those of the Tema branches of Standard Chartered Bank, Ecobank and Stanbic Bank.
However, management could not provide any documentary evidence to account for the total of US $187, 439.11 withdrawn.
In the absence of the documentary evidence to account for the amounts withdrawn from the various GGSL accounts, the auditors therefore recommended that the total amount of US $187, 439.11 should be recovered from the company’s Commercial and Administrative Manager, Mr. Rudolf Engmann who is also the officer in charge of accounts.
Also, between the period of July 2004 and December 2004, management of GGSL issued seven cash cheques totalling US $150, 880.00 which was cashed by the company’s staff and debited GGSL Tema branch of Merchant Bank account number 0250358016.
Management of the company could however not provide the auditors with any documentary evidence, such as payment vouchers and other relevant documentation to account for the total amount of US $150.880.00.
It therefore proved difficult for the auditors to confirm actual payment in order to ascertain the beneficiaries of the amounts withdrawn.
Besides, the investigations revealed that the transactions were not recorded in the out-going cash/cheques register.
Further, the auditors observed in the course of their investigations that management of the company issued two cash cheques totalling US $23, 500.00 which were cashed at the GGSL Tema branch of Merchant Bank account number 00001/01/002516/61 between June 10, 2005 and November 30, 2007.
That notwithstanding, it was detected that there were no payment vouchers and relevant supporting documentation to confirm actual payment, whilst the transactions were not captured in the outgoing/incoming cash/cheques registers.
This became evident since the cash withdrawals or corresponding cedi equivalent was not captured in the company’s statement on sale of dollars made available to the auditors.
Further, management could not explain and or provide any documentary evidence whatsoever to account for the total amount of US $23,500.00 cashed from the bank.
It was also unable to provide the auditors with any documentary evidence such as payment vouchers and other supporting documentations to confirm actual payments and to whom the amounts were paid.
In the absence of documentary evidence to account for the total amount involved, the auditors recommended that the amount should be recovered from the company’s Commercial and Administrative Manager.
Meanwhile, the Managing Director of GGSL and the Commercial and Administration, Messrs. Bennet Aboagye and Rudolf Engmann have sought to ridicule the forensic audit report verbally but without any substantial and substantive documentary proof to back their positions.
A forensic audit report conducted by Messrs. Baffour Awuah and Associates at the instance of the Auditor-General continues to unearth damning findings on the activities and operations of the company.
In the course of its investigations, the auditors detected that huge amounts of monies mostly in dollars denominations had gone unaccounted since management could not reconcile the amounts involved with any documentary evidence whatsoever.
For instance, it was uncovered that during the period of February 23, 2005 to December 20, 2007, cash withdrawals totalling US $184, 354.03 were made from various bank accounts of GGSL, allegedly to pay salaries of the company’s staff.
However, a review of the company’s payroll, salary vouchers and a statement of account on the sale of dollars presented to the auditors by management revealed that for the period under review, the payment of management and staff salaries were made from cedi bank accounts of GGSL through the bankers of the management and staff.
The auditors were therefore unable to obtain documentary evidence from management on how the amounts involved were paid and to whom they were paid to.
In the absence of any documentary evidence to prove the otherwise of its findings, the auditors recommended that the amount of US $184, 354.03 should be recovered from the company’s Commercial and Administrative Manager, Mr. Rudolf Engmann.
Additionally, an amount of US $85,000.00 was alleged to have been exchanged for cedi equivalent from Index Link to pay for the wages of Ghana Dock Labour Company (GDLC).
However, there was not a single document to either confirm or prove that GDLC indeed received either the US $85,000.00 or its cedi equivalent.
It was again recommended that Mr. Engmann be made to refund the amount involved.
Similarly, management of GGSL failed to account for a total cash withdrawal of US $83, 500.00 allegedly paid as ‘special stevedore consultancy fees’ on five vessels during the period of December 2005 to December 2006 since management could not provide any documentary evidence in that regard.
It also emerged that from the period of June 13, 2002 to November 20, 2007 management of the company withdrew a total amount of US $187, 439.11 from various GGSL bank accounts, including those of the Tema branches of Standard Chartered Bank, Ecobank and Stanbic Bank.
However, management could not provide any documentary evidence to account for the total of US $187, 439.11 withdrawn.
In the absence of the documentary evidence to account for the amounts withdrawn from the various GGSL accounts, the auditors therefore recommended that the total amount of US $187, 439.11 should be recovered from the company’s Commercial and Administrative Manager, Mr. Rudolf Engmann who is also the officer in charge of accounts.
Also, between the period of July 2004 and December 2004, management of GGSL issued seven cash cheques totalling US $150, 880.00 which was cashed by the company’s staff and debited GGSL Tema branch of Merchant Bank account number 0250358016.
Management of the company could however not provide the auditors with any documentary evidence, such as payment vouchers and other relevant documentation to account for the total amount of US $150.880.00.
It therefore proved difficult for the auditors to confirm actual payment in order to ascertain the beneficiaries of the amounts withdrawn.
Besides, the investigations revealed that the transactions were not recorded in the out-going cash/cheques register.
Further, the auditors observed in the course of their investigations that management of the company issued two cash cheques totalling US $23, 500.00 which were cashed at the GGSL Tema branch of Merchant Bank account number 00001/01/002516/61 between June 10, 2005 and November 30, 2007.
That notwithstanding, it was detected that there were no payment vouchers and relevant supporting documentation to confirm actual payment, whilst the transactions were not captured in the outgoing/incoming cash/cheques registers.
This became evident since the cash withdrawals or corresponding cedi equivalent was not captured in the company’s statement on sale of dollars made available to the auditors.
Further, management could not explain and or provide any documentary evidence whatsoever to account for the total amount of US $23,500.00 cashed from the bank.
It was also unable to provide the auditors with any documentary evidence such as payment vouchers and other supporting documentations to confirm actual payments and to whom the amounts were paid.
In the absence of documentary evidence to account for the total amount involved, the auditors recommended that the amount should be recovered from the company’s Commercial and Administrative Manager.
Meanwhile, the Managing Director of GGSL and the Commercial and Administration, Messrs. Bennet Aboagye and Rudolf Engmann have sought to ridicule the forensic audit report verbally but without any substantial and substantive documentary proof to back their positions.
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