Yes, let me invite the Hon Minister for Lands and Natural Resources.
Hon Deputy Minister for
Finance, you will be the last speaker on that so please hold on.
But please, let us be a bit
snappy; a lot of people want to contribute so let us be brief so that we can give the opportunity to other Hon Members to also contribute.
Yes, Hon Minister?
Minister for Lands and
Natural Resources (Mr Samuel
Abdulai Jinapor)(MP): Thank you, Mr Speaker for the opportunity to contribute to this Statement which I find very important and consequential on
the developmental aspirations of our country.
Mr Speaker, the Statement
made bothers on matters of
accountability and the protection
of the public purse of our country.
I think that the Hon Member who
made the Statement has thrown
out a lot of thought-provoking
issues which we all have to pay
attention to. And for me, the
fundamental point which this
Statement puts before, us as a
House is, how do we protect the
public purse? How do we protect
the resources of the people? And
Mr Speaker, if you would allow
me, as the celebrated Prime
Minister of the United Kingdom
(UK) Margaret Thatcher said that
there is really nothing like public
funds, it is all your taxes; it is your
moneys. And so, the composite
concept of public funds, in her
view, does not exist; it is the
taxpayers' money, and therefore, the matters that Auditor-General
superintends over and works to
protect, relates to the taxes of the
people; the money of the
Ghanaian people. That is very
important.
Mr Speaker, I think one of the
key things we all have to pay
attention to is, what kind of system
do we have to protect the
taxpayers' money? Is it robust enough; is it fullproof? Is it
capable of identifying leakages,
lapses, embezzlements,
misapplications, misappropriation
of funds? Is it capable as it stands
today? The Auditor-General's Department and allied agencies,
are they capable of protecting the
public purse? I think it is a
fundamental issue we have to pay
attention to.
Mr Speaker, in many cases, the
attention is always paid to political
actors and what they do or what
they do not do. But I would like to
insist that we must look at these
matters from a broader
perspective. Ghana Education
Service at the local level; Ghana
Health Service at the local level;
the various public agencies and
entities we have in our country
from the unit to the district, to the
regional and to the national level;
how are financial transactions
conducted? Is it, for instance,
possible for a director of a
Government department to pile up
the payroll with say, ten or twenty
people, and on a monthly basis,
the pay that is paid from the
Consolidated Fund gets into his
private pocket?
So, the capacity of the Auditor-
General, wherewithal of the
Auditor-General to be able to
audit public funds is, for me, the
most important and we have to
pay particular attention to that:
does it meet international best
practices for instance? Why is it
the case that in some jurisdictions
if you attempt to embezzle public
funds you would be found out and
found out so easily but in our
country, it is not so the case?
Mr Speaker, and then, also, the
case of enforcement. And the Hon
Member who made the Statement
highlighted that, and I think that
my senior Hon Colleague from the
other Side has also spoken to that;
the issue of enforcement. And I
believe that every day, citizens are
becoming frustrated and
nauseated by the situation of
Public Accounts Committee,
conducting hearings and all them
- hearing about these billions of dollars siphoned and yet, at the
end of the day, people are not held
accountable, and moneys are not
retrieved. I would like to suggest
that it gets back to the system that
we have in place. And we have to
interrogate the system.
Mr Speaker, I would like to
make the final point, and I think of
all the points I have made, that
final point for me, is more
fundamental; which is that as - in all respect and with all modesty, as
a student of the Fourth Republican
dispensation and politics, I have
seen it too many times almost
without exception. These matters
are always looked at from the
political lenses. And so, when they
say so much has been embezzled,
what unfortunately, and with
respect, many of us in this House
would begin to ask is, when did it
happen? We are more interested in
when it happened than how it was
embezzled; how come it was
embezzled; what can we do to deal
with it.
Mr Speaker, the question of
when it happened, with the
greatest of respect, is totally
inconsequential. If it happened
under the First Administration of
the Fourth Republic, it is an
embezzlement; if it happened in
the Second Republic, it is an
embezzlement; if it happens
today, it is an embezzlement. And
I would want to submit to the
House that arising out of this
Statement, we probably should
begin to interrogate and examine
the situation we have today and
develop a framework which is
colour-blind to the time of the
occurrence of embezzlement or
malfeasance and deal with
embezzlement as it is regardless of
when it took place.
Mr Speaker, I would like to
conclude by saying that this
Statement is very important and
profound because at the end of the
day, all the matters we talk about
as a country, and our
developmental aspirations and the
goals we set for ourselves would
not be realised if we do not get full
proof, water-tight systems which
would check embezzlement,
malfeasance, misappropriation,
misapplication of public funds.
And I think we should do that
across the board devoid of
partisanship.
Mr Speaker, with these few
words, I thank you for the
opportunity to contribute to the
Statement.
Mr Suhuyini A. Sayibu (NDC
- Tamale North): Thank you
very much, Mr Speaker, for the
opportunity to contribute to a very
well written Statement. Despite
some few disagreements, I
actually agree with most of the
issues that have been captured by
the Hon Member who made the
Statement. I also wish to associate
with earlier contributions on how
improving internal audit can help
fight corruption.
Mr Speaker, since the Internal
Audit Agency Act, 2003 (Act 658)
was passed, many have called for
its review and in some cases, a
total overhaul to ensure that it
serves the purpose of doing a pre-
corruption investigation of
preventing corruption instead of
doing a post-analysis of corrupt
activities that occur. This is
because clearly, what it seems to
do now is to close the stables after
the horses have bolted and that is
why it is important that we look at
how much we have gained since
the passage of this Act and its
implementation.
I have seen a number of
research reports that have shown
that the impact of the Agency so
far has largely been in the area of
financial discipline and public
sector accountability improvement.
So, we have been able to ensure that
there is some level of financial
discipline in the public sector
because of the existence of the
Internal Audit Agency. Again, it
has also improved upon
accountability by way of letting us
know how much we misapply.
Mr Speaker, but should that be
our focus? Should our focus not be
on how to prevent the
misapplication and the
malfeasance that are reported
year-in-year-out? That is why I
agree with those who are calling
for an overhaul of the Agency.
That would make it possible for it
not to just do post-corruption
analysis but would also engage in
preventing corrupt practices.
Mr Speaker, it is clear that an
independent and competent
Internal Auditor who has integrity
can help reduce corruption. This
can also be achieved when you
have a political system that makes
it possible for people who have the
knowhow to be independent and
to so act without fear, and to also
show the integrity they have
without the fear of political witch-
hunting. I hate to use the current
example that is readily available
where an Auditor who was termed
to be courageous, independent and
demonstrated integrity, had to be
forced to proceed on leave even
though he did not deserve to go.
Mr Speaker, no matter how
much I agree that we need to
overhaul our existing Act to make
these Internal Auditors
independent, show integrity and
demonstrate competence, if the
political environment does not
promote such virtues, we are not
going to achieve much from that
undertaking.
Mr Speaker, with these few
words, I would like to once again
commend the Hon Member who
made the Statement and associate
with calls to overhaul Act 658 of
the Internal Audit Agency to make
it more relevant to prevent
corruption instead of the post-
rationalisation approach that it has
adopted over the years.
Thank you.
Mr Mohammed H. Tuferu
(NPP - Nanton): Thank you very much, Mr Speaker, for the
opportunity. I would also want to
associate myself with earlier
contributors to the Statement ably
made by the Hon Member for
Amasaman on the auditing
function.
If you look at the structure and
arrangement of the role of auditing
in Ghana in our financial
management system, everything
has been done so well that we have
the external auditors to do external
auditing and the Internal Audit
Agency Act, setting up auditing
functions in all Government
establishments. Functionally,
internal auditors are supposed to
report to the Audit Committees of
the various institutions but
administratively, they report to the
head of the entity.
Mr Speaker, if you peruse the
Audit Reports that come before
the Public Accounts Committee
(PAC), one wonders why with all
these arrangements, we still have
infractions bordering on cash, tax,
contracts and stores management
even though we have these
structures in place to check that.
Yesterday for example, at the
PAC sitting on the 2020 Audit
Report, there was a report of tax
irregularity and the Ministry of
Finance was supposed to provide
a response to it. Normally, when
they conduct the external audit,
auditees are given one month to
respond to the initial observations
made by the Auditors. If within
the one month, the auditee is not
able to provide the information - Even though sometimes the
information is available but the
fact that the auditee is unable to
report to the Auditors within the
30 days, however relevant the
information is to inform whatever
report the Auditors are supposed
to make, they would go ahead and
publish their report.
So, at the PAC, they come with
a very good response which if it
was available before the Auditors
put their reports together, they
would not have included such in
their reports. For example, the
Ministry of Finance was charged
that they failed to pay tax to the
tune of GH¢2.3 billion, included
in the cash irregularity report by
the Auditor, only for us to be
given a very good explanation that
it was additional oil entitlement.
They were supposed to provide
this information to the Auditors
before they finalised their reports
but they did not. Yesterday
however, it appeared that it was
not actually a tax irregularity.
So, the point I am trying to
make is that most of the issues that
are reported as tax and cash
irregularities and other
irregularities are just basic things
that they needed to provide to the
Auditors before they finalised
their reports but they were not able
to do so. Maybe, a cashier was
supposed to take receipts upon the
issuance of cheques but failed to
do so. So, it falls under cash
irregularities and it is all over the
place as cash and stores
embezzlement when in actual fact,
an officer failed to perform his
duty to enable the Auditor
conclude his report as he should.
Mr Speaker, basically, most of
the things that are reported to us as
cash, tax or payroll irregularities
are actually failure on the part of
officers to perform their duties as
they should. So, the institutions
are really doing well and need to
be encouraged. There should be
more training for officers
performing duties in the area of
finance so that they would be able
to minimise most of the
weaknesses we have in the
system.
Thank you very much, Mr
Speaker, for the opportunity.
Mr Samuel O. Ablakwa
(NDC - North Tongu): Mr
Speaker, I am grateful for the
opportunity to contribute to this
Statement. In doing so, kindly
permit me to commend the Hon
Member who made that Statement
for drawing attention to this all-
important issue.
Mr Speaker, the point has been
emphasised about the need to
work on our auditing systems; the
need to ensure that our auditing
agencies are independent and
empowered to carry out their
work.
Mr Speaker, when we put the
challenge of corruption in context
on our continent, we would come
to terms with how important this
Statement is. According to the
African Union, Africa loses
US$140 billion annually to
corruption. When this is put in
further context that is the Gross
Domestic Product (GDP) of
virtually all African countries.
Only five African countries have
GDPs that exceed US$140 billion.
That is scary. I have also read
reports from the Ghana Integrity
Initiative that puts the financial
lost to corruption in Ghana to an
average of US$3 billion annually.
That amount far exceeds what the
Government of Ghana intends to
raise from the vexed and much
talked about E-Levy.
Mr Speaker, the matter we are
discussing is a very important one.
If our Continent would break free
from the shackles of
underdevelopment, unemployment,
deprivation and excruciating
economic hardships that our people
have to contend with, that forces
that youth of our country to embark
on that dangerous, perilous and
tortuous journey across the Sahara
Desert and travel with those
dangerous dingiest on the
Mediterranean Sea just in search
of greener pastures, then we need
to take the matter of plucking the
loopholes to fight corruption more
seriously than we have.
Mr Speaker, in our part of the
world, the fight against corruption
has become “fighting my opponent's corruption” and it appears that successive
governments are all guilty. Since
the return to multiparty
democracy, perhaps, we could
single out two former presidents;
President John Agyekum Kufuor,
who had the courage to prosecute
a Cabinet Minister, the Hon
Mallam Issah who was eventually
jailed. Then President John
Dramani Mahama, who
prosecuted a former Hon Minister
and a former Hon Member, Mr
Abuga Pele, who was pardoned
only recently by the current
President.
Mr Speaker, apart from these
two former presidents, no other
president has taken on their own
appointees, prosecuted, sent them
to the court and ensured that they
accounted for publicised
corruption. We wait for a new
government to come to power and
then the government then looks
back at what transpired before
they came to power. So, the fight
against corruption is not really
about what has happened now and
the no nonsense attitude and
intolerant posture against the
canker so that this US$140 billion
which the African Union said that
we have lost would be addressed.
Mr Speaker, we must be regime
blind. We must be nonpartisan
when it comes to the fight against
corruption. If what happens today
is wrong, it should be considered
as wrong and must be dealt with
immediately and timeously. It
should not be about corruption
becoming a tool to beat one's political opponent but because we
want to uproot the canker and we
want to deal with it.
Mr Speaker, we also know that
in addition to empowering the
audit agencies, there are a number
of legal reforms that we must be
bold to confront. Our assets
declaration regime is not the best.
Elsewhere, all politically exposed
persons associated with political
office holders are also made to
declare assets and it is done
publicly. Our assets declaration
regime is one that has proven to be
most ineffective when it comes to
the fight against corruption. First
of all, it is not public and secondly,
spouses and associate close allies
are not covered. The best practice
is to make it public and it is to rope
in as many allies, close associates
and spouses as much as possible.
Mr Speaker, we also need to
confront the matter to do with
conflict of interest. We cannot
succeed in a corruption fight if a
person is an Hon Minister and in
the person's sector companies that he or she has shares in and he or
she is a director in, could do
business and profit and yet we say
that that is allowed and accepted.
That is a big joke and a sham.
We cannot fight corruption if
we do not have very stringent
conflict of interest laws that
outlaws the practice where a
person could be a public official
and have companies that he or she
is associated with and still do
business in that sector. It does not
matter if the company is so
reputable or has all the credentials
but once the person would be the
one to award the contract and is
associated to the company, that
company must be disqualified or
that person must leave that public
office.
Mr Speaker, we must raise
these matters and call for high
standards. As a country, we must
be concerned about how we are
faring on the corruption
perception index. All of these
weak systems of poor assets
declaration regime and abysmal
conflict of interest environment -
this ecosystem that seem to
facilitate corruption feeds into the
corruption perception index. With
the latest one released by
Transparency International,
Ghana scored only 43 out of 100.
Out of the 49 countries that we
assessed, only five countries
crossed 50 out of a score of 100.
So, Africa is stagnated.
If we know how countries such
as Seychelles, Cape Verde and
Mauritania have done it to be able
to cross 50, we could also do it
because it is about the personal
integrity of leadership. Seychelles
actually scored 70. Do we really
mean what we say when we say
we would protect the public purse
and that we would fight
corruption? Do we really mean it
or we just meant that we would
use it to beat political opponents?
Mr Speaker, it comes back to
personal integrity and sincerity of
leadership. We could have all the
laws and carry out all the reforms
but if those who would man these
institutions do not have high
personal integrity, we would not
make the impact that we must
make and we would mark time
and stagnate as we have done on
the CPI currently, which must be
of concern to all of us.
Mr Speaker, finally, this House
also has a role to play when it
comes to strengthening the
auditing systems. There is a
provision in our Constitution
which we have not as at now,
applied ourselves to.
Mr Speaker, with your
permission, I quote article 187(6)
of the 1992 Constitution, which is
a provision under the Auditor-
General:
“Parliament shall debate the report of the Auditor-General
and appoint where necessary,
in the public interest, a
committee to deal with any
matters arising from it.”
Mr Speaker, since the inception
of the Fourth Republic, this House
has not implemented this
provision. So, as we discuss audit
reforms and strengthening the
Audit Service, as an institution,
we must also carry out an
introspection and see how we can
elevate our role and help fight this
canker which has robbed this
continent and the youth in
particular, the opportunities and
economic transformation that
continues to elude us.
It took only 30 years for the
Asian Tigers to transform their
societies and they are as
developed as they are. This is the
30th year since we promulgated the
1992 Constitution. We cannot
keep marking time; we must be
bold and sincere about the
corruption fight, and once we are
sincere and we are prepared to
bring to bear with high personal
integrity, we shall succeed.
Mr Speaker, I would like to
commend the Hon Member who
made this Statement for bringing
this very important Statement to
our attention.
Mr Kwabena Okyere Darko-
Mensah (NPP - Takoradi): Mr
Speaker, thank you for giving me
the opportunity to add my voice to
the Statement ably made by Hon
Afrifa on “Enhancing Audit
Function towards Reducing
Irregularities, Infractions and
Corruption in Public Institutions”.
Mr Speaker, I believe that this
is apt and is in order, especially in
the times that we are in. I have had
the special privilege of discussing
these issues with the Accountant-
General because I believe that that
is where the infractions start. To
the extent of asking him that for
those of us with the Local
Government and Rural
Development, the Assemblies
should be enabled to recruit their
own accounting staff so that when
they make these infractions or
create problems, they can be
properly sanctioned at that level.
In a situation where everything,
including appointments are done
in Accra, people come to the
Districts, do the wrong things and
then they are transferred to other
Districts to go and create the same
problems there. Therefore, it
becomes very difficult and
embarrassing when Hon
Ministers, spending officers, chief
directors are summoned in Accra
and asked questions that
sometimes precede them, and in
oftentimes too, they even find it
difficult to defend.
Mr Speaker, I believe that it is
time that as a country, we start
doing things differently, and we
cannot do things differently if we
do not take bold decisions. In
Ghana and Africa, we are aware of
some of the transfer pricing issues
that occurs making us lose huge
sums of money.
In our own country, asset
declaration, as everybody is aware
of, is not very effective. It is not
effective because we do not want
to make it effective. People give
excuses that when one's nephews, nieces and friends or even the
public know how much you own,
they might come and kill you.
Mr Speaker, I believe that we
can enhance it no matter how it is.
For that purpose, I do believe that
it is time every Ghanaian declared
his or her assets so that this
business of assets moving from a
public figure to an unknown
person can always be correlated
and the situation where people
transfer assets to their far away
friends can be checked. In a
situation where we are all
behaving and believing that it is
only about thousand public
servants or figures who are in that
bracket, that would not solve any
problem.
In this country and elsewhere,
we have people who make so
much money and are supposed to
pay so much taxes but they decide
not to pay those taxes. As far as
they keep those taxes with them
which are considered government
money.
And it is for that reason we
should be able to ensure that every
Ghanaian declares their assets so
that when we are connecting the
dots, we can do so well, so that all
the moneys due the State come to
the State. In so doing when we are
doing audits, we can even add
lifestyle audit to make sure that
people who are not expected to
own a certain type of property or
asset, either liquid or physical or
tangible or intangible, we would
be able to connect the dots
together, and when they know that
we are connecting the dots
together, we would be able to
claim for the country what belongs
to it.
Mr Speaker, there is a very
beautiful Table on page 7 of the Statement, which relates to the Report of the Auditor-General on
the Public Accounts of Ghana, Ministries, Departments and other Agencies for the year ended 31st December, 2020.
It is very instructive to note that
when we look at 2016 - I am looking at ‘Cash Irregularities' - ‘for 2016, the cash irregularities is about GH¢2 billion. If we go to 2017, it reduced from GH¢2 billion to GH¢190 million and then it goes further to 2020 to about GH¢34 million. So, clearly, it shows that for public institutions, cash irregularities - which is one of the major problems I have, there seems to be an improvement in the way it is managed.
Mr Speaker, when we take tax
irregularities, I believe that these are statements in the Report that basically show that some of the public institutions are not paying either the withholding taxes to the Ghana Revenue Authority (GRA) and so on.
If we also take loans, debts and
advances, these are basically moneys that have accrued to staff of these agencies and I believe that if we also take, for instance, payroll, there seems to be some kind of management that is going
on but I was shocked when it came to stores, procurement and contracts. If we look at the figures compared to what we are seeing with the cash irregularities, one would clearly see that the problem is not really at the procurement area but rather at the lower levels where little cash irregularities are taking place.
Mr Speaker, I see cash
irregularities as stolen money and
I would like to use this
opportunity to request Mr Speaker
to give a directive so that when the
Public Accounts Committee
(PAC) looks at this Report, we can
actually go after those who have
actually stolen moneys from our
institutions back to Government
chest. This is because if we look at
the other ones, they are basically
not stolen but this is real cash that
has been stolen and I believe that
we should be able to do so.
One of the other issues; the
Hon Member who made the
Statement clearly said which I
would like to bring to your
attention is that of prevention. I
believe that prevention is always
better than cure and so, what can
we do to enable or enhance the
work of the internal auditor to
prevent the rot before the external
auditors come in to pick their
report?
Mr Speaker, I believe that it is
time we gave them a certain level
of empowerment that they can use
in preventing certain transactions
from taking place in the
Assemblies or in Government
institutions even before they
become a problem for the external
auditors or the Auditor-General's
Department to come and do
investigations.
Mr Speaker, with these few
words, I believe that this
Statement is apt and it is very
important that we support them
going forward.