Posted: The Chronicle Thursday, April 30, 2009
ByCharles Takyi-Boadu
The Auditor General has uncovered what appears to be massive financial malpractices at the School Feeding programme, following the forensic audit it conducted into its operations. A final report signed by Mr. Augustine R. K. Boadu, the Deputy acting Auditor General (AG), on behalf of the AG, a copy of which has been intercepted by The Chronicle has implicated certain individuals at the Secretariat, including the Senior Accountant, one Ebenezer Kwesi Donkor for his negligence and poor record keeping which has resulted in the loss of huge sums of money to the state.
The report, which is dated April 23, 2009, covered the period of April 1, 2006, to December 31, 2007.
The Senior Accountant, according to the report,
could not provide for audit, payment vouchers covering GH ¢18, 094.08 (¢180.9 million) to support entries in the cash book due to weak management control and security over vital official documents. The Accountant only managed to present receipts totalling GH ¢10,585.53 (105,845,279.00), leaving a balance of GH ¢9,598.67 (¢95,986,721.00) which is yet to be accounted for. Mr. Kwesi Donkor, however, told the auditors that the head office operated a standing imprest of GH ¢500.00. Out of this amount, he said the Executive Chairman handled GH ¢400.00 while he administered the remaining GH ¢100.00.
The Senior Accountant added that the unaccounted for balance of GH ¢9,598.67 included an amount of GH ¢1,800.00 which was sent to the regions to enable the Monitoring Officers meet petty expenses.
Though he claimed he could provide documents for payment vouchers covering transactions totalling GH ¢18,094.08 (180.94 million) to support entries in the cash book, the Senior Accountant, Mr Kwesi Donkor could also not provide any such document for audit. In the absence of the disbursement records to support transactions, the auditors recommended that the Senior Accountant should immediately refund the amount of GH ¢18,094.08 to chest.
On his part, the Executive Chairman explained to the auditors that he used the imprest on protocol, press conferences, entertainment of foreign guests, fuel, transportation, etc., and provided the team with receipts to back his claims. However, the auditors recommended that Management should investigate the matter and ensure immediate accountability of the amount of GH ¢9,598.67.
During the period under review, the report noted “the National Secretariat of the GSFP withheld 5% of taxes totalling GH ¢117, 177.36 or GH ¢1.17 billion from payments to suppliers and failed to remit the amount collected to the Commissioner of the Internal Revenue Service as required by Section 87 (1) of Act 592.
Management however attributed the delay in remitting the tax collections to the IRS to the late release of funds from the Ministry of Finance and Economic Planning and pressure from suppliers to be paid for goods supplied, urging management to “immediately remit the GH ¢177, 177.36 to the Commissioner of IRS and strictly adhere to the tax laws in future.
At the same time, payment vouchers covering GH ¢151,016.02 (¢1.51 billion) worth of goods and services contracted did not have documents supporting the transactions and, therefore, asked that the Senior Accountant produces the documents for subsequent review to avoid being surcharged.
It was also detected that management paid Messrs. Afrique Link limited GH ¢203, 303.75 for the supply of 10, 770 trays of tomato paste.
Though the amount included a VAT component of GH ¢23.424.75, the report indicated that management did not ensure that company accounted to the VAT Secretariat for the VAT amount collected. It therefore recommended that management follow up for the official VAT receipt from Afrique Link limited, whilst an imprest amounting to GH ¢20, 183.20 was not adequately accounted for, blaming the Senior Accountant of the Secretariat for not keeping an imprest cash book to transactions, neither was there a storekeeper to take charge of purchases made.
The object of the audit was to ascertain whether funds released and Store items received by the Secretariat were properly accounted for in the programme’s books of account and standard accounting and administrative procedures were followed in running the affairs.
It was also to ascertain whether internal and monitoring controls were effectively working at the Secretariat and whether its assets were in its name, secured and safeguarded.
This followed an earlier report commissioned by Messrs. Price Waterhouse Coopers in 2006 which raised questions of underhand dealings in the already-struggling School Feeding Programme.
The findings of that report smacked of fear of insecurity since it revealed acts of corruption, inappropriate award of contracts, forged signatures, inflated school enrolment figures and maladministration.
In the course of its investigations, the auditors evaluated the adequacy and effectiveness of internal control, management, procurement, payroll and programme activity as well as stores and inventory management.
It was, however, realized that for the 43 months (October 2004 to April 2008) that Dr. Amoako Tuffuor worked as head of the GSFP, he was not paid any salary, even though the Ministry of Local Government, Rural Development and Environment fixed his salary at GH ¢3,834.00 per month, as was indicated in a letter dated.
It was came to light that the former Executive Secretary was advanced GH ¢1,000.00 every month, pending payment of his salary.
It will be recalled that on April 2, 2008, the Committee for Joint Action (CJA) went to town with the findings of the said report, describing its content as amounting to wanton corruption and stealing. The CJA’s concern was that funds amounting to ¢363,549, 000 that the Secretariat of the programme claimed to have transferred to ten districts were not received by those districts.
According to the pressure group, the extent of corruption, maladministration, nepotism and patronage was so excessive that the programme has not only become a complete shamble, but also part of the New Patriotic Party’s (NPP) project for the massive looting of the nation’s coffers. In order to save the programme from total collapse, the Committee called for the dismissal of Dr. Kwame Amoako Tuffuor.
It also asked government to set up an independent investigation public enquiry to investigate the activities and operations of the programme. In effect, the CJA said all those who are known to have committed fraud or other criminal offences should be prosecuted. This latest report, however, appears to have exonerated Dr. Amoako Tuffuor, as no specific adverse findings were made against him.
The Auditor General has uncovered what appears to be massive financial malpractices at the School Feeding programme, following the forensic audit it conducted into its operations. A final report signed by Mr. Augustine R. K. Boadu, the Deputy acting Auditor General (AG), on behalf of the AG, a copy of which has been intercepted by The Chronicle has implicated certain individuals at the Secretariat, including the Senior Accountant, one Ebenezer Kwesi Donkor for his negligence and poor record keeping which has resulted in the loss of huge sums of money to the state.
The report, which is dated April 23, 2009, covered the period of April 1, 2006, to December 31, 2007.The Senior Accountant, according to the report,
could not provide for audit, payment vouchers covering GH ¢18, 094.08 (¢180.9 million) to support entries in the cash book due to weak management control and security over vital official documents. The Accountant only managed to present receipts totalling GH ¢10,585.53 (105,845,279.00), leaving a balance of GH ¢9,598.67 (¢95,986,721.00) which is yet to be accounted for. Mr. Kwesi Donkor, however, told the auditors that the head office operated a standing imprest of GH ¢500.00. Out of this amount, he said the Executive Chairman handled GH ¢400.00 while he administered the remaining GH ¢100.00.
The Senior Accountant added that the unaccounted for balance of GH ¢9,598.67 included an amount of GH ¢1,800.00 which was sent to the regions to enable the Monitoring Officers meet petty expenses.
Though he claimed he could provide documents for payment vouchers covering transactions totalling GH ¢18,094.08 (180.94 million) to support entries in the cash book, the Senior Accountant, Mr Kwesi Donkor could also not provide any such document for audit. In the absence of the disbursement records to support transactions, the auditors recommended that the Senior Accountant should immediately refund the amount of GH ¢18,094.08 to chest.
On his part, the Executive Chairman explained to the auditors that he used the imprest on protocol, press conferences, entertainment of foreign guests, fuel, transportation, etc., and provided the team with receipts to back his claims. However, the auditors recommended that Management should investigate the matter and ensure immediate accountability of the amount of GH ¢9,598.67.
During the period under review, the report noted “the National Secretariat of the GSFP withheld 5% of taxes totalling GH ¢117, 177.36 or GH ¢1.17 billion from payments to suppliers and failed to remit the amount collected to the Commissioner of the Internal Revenue Service as required by Section 87 (1) of Act 592.
Management however attributed the delay in remitting the tax collections to the IRS to the late release of funds from the Ministry of Finance and Economic Planning and pressure from suppliers to be paid for goods supplied, urging management to “immediately remit the GH ¢177, 177.36 to the Commissioner of IRS and strictly adhere to the tax laws in future.
At the same time, payment vouchers covering GH ¢151,016.02 (¢1.51 billion) worth of goods and services contracted did not have documents supporting the transactions and, therefore, asked that the Senior Accountant produces the documents for subsequent review to avoid being surcharged.
It was also detected that management paid Messrs. Afrique Link limited GH ¢203, 303.75 for the supply of 10, 770 trays of tomato paste.
Though the amount included a VAT component of GH ¢23.424.75, the report indicated that management did not ensure that company accounted to the VAT Secretariat for the VAT amount collected. It therefore recommended that management follow up for the official VAT receipt from Afrique Link limited, whilst an imprest amounting to GH ¢20, 183.20 was not adequately accounted for, blaming the Senior Accountant of the Secretariat for not keeping an imprest cash book to transactions, neither was there a storekeeper to take charge of purchases made.
The object of the audit was to ascertain whether funds released and Store items received by the Secretariat were properly accounted for in the programme’s books of account and standard accounting and administrative procedures were followed in running the affairs.
It was also to ascertain whether internal and monitoring controls were effectively working at the Secretariat and whether its assets were in its name, secured and safeguarded.
This followed an earlier report commissioned by Messrs. Price Waterhouse Coopers in 2006 which raised questions of underhand dealings in the already-struggling School Feeding Programme.
The findings of that report smacked of fear of insecurity since it revealed acts of corruption, inappropriate award of contracts, forged signatures, inflated school enrolment figures and maladministration.
In the course of its investigations, the auditors evaluated the adequacy and effectiveness of internal control, management, procurement, payroll and programme activity as well as stores and inventory management.
It was, however, realized that for the 43 months (October 2004 to April 2008) that Dr. Amoako Tuffuor worked as head of the GSFP, he was not paid any salary, even though the Ministry of Local Government, Rural Development and Environment fixed his salary at GH ¢3,834.00 per month, as was indicated in a letter dated.
It was came to light that the former Executive Secretary was advanced GH ¢1,000.00 every month, pending payment of his salary.
It will be recalled that on April 2, 2008, the Committee for Joint Action (CJA) went to town with the findings of the said report, describing its content as amounting to wanton corruption and stealing. The CJA’s concern was that funds amounting to ¢363,549, 000 that the Secretariat of the programme claimed to have transferred to ten districts were not received by those districts.
According to the pressure group, the extent of corruption, maladministration, nepotism and patronage was so excessive that the programme has not only become a complete shamble, but also part of the New Patriotic Party’s (NPP) project for the massive looting of the nation’s coffers. In order to save the programme from total collapse, the Committee called for the dismissal of Dr. Kwame Amoako Tuffuor.
It also asked government to set up an independent investigation public enquiry to investigate the activities and operations of the programme. In effect, the CJA said all those who are known to have committed fraud or other criminal offences should be prosecuted. This latest report, however, appears to have exonerated Dr. Amoako Tuffuor, as no specific adverse findings were made against him.
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