Any seconder?
Yes, Hon Member for Fanteakwa South?
Ranking Member of the
Committee (Mr Kofi Okyere- Agyekum): Mr Speaker, I rise to second the Motion on the Report of
the Public Accounts Committee on the Report of the Auditor-General on the Pubic Accounts of Ghana (Public Boards, Corporations and other Statutory Institutions) for the period ended 31st December, 2019.
Mr Speaker, I would make few
comments, particularly, on the
irregularities in relation to GRIDCo.
If we look at paragraph 7.1.4 on page
13 of the Report, among the
irregularities particularly noted with
GRIDCo is the non-existence of
Transaction Service Agreement
(TSA) or customer agreements. It
reads:
“The audit revealed that the company did not have a signed
Transmission Service Agreement
(TSA) with eight customers and
power generators, although its
accounting and finance manual
requires a contract to be in place
for transmission services
rendered. Also, TSAs for seven
customers had expired and have
not been renewed.”
Again, Mr Speaker, if we look at
paragraph 7.1.4.2 - Long Outstanding Trade Receivables, GH₵234,338,331 of trade receivables have not been
collected by GRIDCo, and it is also
part of the contract irregularities.
2019 Auditor-General's Report on PBC & Other Statutory Insts.
Mr Speaker, again, GRIDCo is
cited in paragraph 7.1.4.4 on page 14,
and here, the infraction is “No On- lending Agreement between Volta
River Authority (VRA) and GRIDCo
in Respect of Assets and Liabilities
Transferred”. It reads:
“The audit observed that there was no on-lending agreement
between VRA and GRIDCo in
respect of facilities that VRA
borrowed funds to construct and
transferred to GRIDCo. The
asset was recognised as long-
term liabilities in GRIDCo's accounts.
The Auditor-General advised
Management to engage VRA
and the Ministry of Finance to
conclude an on-lending
agreement, stating the terms of
the facility.
Management revealed to the
Committee that Government
converted the entire amount of
GH₵614,203,518 to equity but failed to pay dividend due to
cashflow challenges”.
Mr Speaker, I think that this is a
matter that must be taken seriously so
that GRIDCo would pay dividends to
GRA and therefore, Government.
Again, there is another one where
there is a dispute between the Bui
Power Authority and GRIDCo on the
amount of indebtedness, and the
Auditor-General has recommended
that this matter, which involves about
GH₵28.96 million, be resolved so that whoever the amount is due can
have it.
Mr Speaker, with these few
words, I second the Motion.
Question proposed
Mr Murtala Muhammed
Ibrahim (NDC — Tamale Central): Mr Speaker, I rise to
support the Motion for the approval
of the Report of the Public Accounts
Committee on the Report of the
Auditor-General on the Pubic
Accounts of Ghana (Public Boards,
Corporations and other Statutory
Institutions) for the period ended 31st
December, 2019.
Mr Speaker, as part of the
irregularities identified by the
Committee, one irregularity that
attracts my attention, and which is of
tremendous concern to me, and I
believe to many of our Hon
2019 Auditor-General's Report on PBC & Other Statutory Insts.
Colleagues, is the procurement
irregularities.
If we check paragraph 6.1.4., it
indicates that these irregularities
occurred as a result of Management's non-compliance with the provisions
of the Public Procurement Act, 2003
(Act 663) and the total irregularities
amounted to US$3 million, which is
GH₵13,530,000. The Auditor- General, once again, recommended
that Managements of the various
institutions should undertake
procurement transactions strictly for
the adherence of Act 633.
Mr Speaker, these institutions
have legal departments, and the legal
departments were conscious of what
the law says, yet they disregarded this
law and engaged in such actions. It is
the view of the Auditor-General and
my humble opinion that such
institutions should take the necessary
steps to ensure that we do not have a
repeat of this. Having served in the
Committee — at least this is my second year in this Parliament, for all
the problems or infractions that are
identified, the institutions appear
before the Committee and promise
that we would not have a repetition of
same, yet the next Report we take, the
same infractions occur.
Another irregularity has to do
with contract irregularities. If we
look at paragraph 6.1.7., it indicates
that these mainly related to
overpayment of contracts, absence of
signing of contract agreements,
failure to comply with tendering
procedures, delay in construction,
ineffective control over contracts,
and absence of transparency. These
are serious infractions, but once
again, these institutions that engage
in such infractions are conscious of
what the law says. In this country,
people have served jail terms for
engaging in such infractions, yet we
find heads and boards of such
corporate institutions engaging in
same with alacrity.
Mr Speaker, I would like to
specifically look at the Volta River
Authority (VRA) Resettlement Trust
Fund and the need for investment
policy. If you check paragraph 7.1.3.,
it indicates that the auditors' review of the financial records of the VRA
Resettlement Trust Fund showed that
the Board, over the period, invested
some funds in various financial
institutions with the intention of
earning returns to complement the
2019 Auditor-General's Report on PBC & Other Statutory Insts.
major sources of funding for the
organisation, yet they did so without
any documented policy on invest-
ment. In this country, we have had
people who served jail terms because
they had very clear intentions to
invest for the purposes of supporting
the institutions they headed. The
simple reason was that there was no
legal backing for such investments,
even though they had very clear
minds and good intentions to
generate some revenue for the
institutions. This cannot be different
from those decisions and actions
taken by those people for which
reason they were jailed by our courts.
Mr Speaker, my last point has to
do with the capacity of those who
manage some of these institutions.
Repeatedly, we have called for the
capacity of those who manage some
of those institutions to be upped, yet
this call seems to be falling on deaf
ears. It is about time the Committee
and Parliament took a position and
demanded that the capacity of those
heading such institutions, particularly
those managing such investments,
should be taken seriously. If we do
not do that, we would lament anytime such Reports are presented.
I humbly suggest that Parliament
should take a decision in approving
this Report, that the institutions
should be forced to ensure that they
build the capacity of those who
handle such very critical and
important portfolios within those
institutions.
Mr Speaker, with these few
words, I thank you for giving me the
opportunity to contribute to the
approval of the Report.
Majority Leader (Mr Osei
Kyei-Mensah-Bonsu): Mr Speaker,
I crave your indulgence to make few
observations because I would have to
step out. First, I rise to add my voice
to those who have spoken ahead of
me to adopt the Report of the Public
Accounts Committee on the Report
of the Auditor-General on the Public
Accounts of Ghana.
Mr Speaker, this one relates to
public boards, corporations and other
statutory institutions for the period
ended 31st December, 2019. The
other day when you were not in the
Chamber, I raised a few matters, and
I intend to hammer on just one or two.
Mr Speaker, first, these Reports
from the Auditor-General relate to
public accounts, public boards,
corporations and other statutory
institutions. We realise that there are
2019 Auditor-General's Report on PBC & Other Statutory Insts.
issues relating to improprieties on the
part of all these institutions, public
boards and corporations. These
matters have come before us for
Parliament to take a position on them.
Incidentally, there are Hon Members
of Parliament serving on the boards
of these corporations and the Entity
Tender Committees of these
corporations.
The Auditor-General has told us
that there are cash irregularities, payroll irregularities, and procure-
ment irregularities, and Hon
Members serve on these Entity
Tender Committees. Have they ever
reported cases of malfeasance to us?
There is none that I know of.
Officially, we have not seen anything
from our representatives on these
boards. These matters have come to
us, and Parliament would have to take
a position on them. What does it
mean? How does it translate or affect
the work being undertaken by our
representatives on these corporations
and public institutions?
Mr Speaker, the time has come
for us, as a House, to take a decision on Hon Members of Parliament serving on public boards. There are Hon Members who serve on these boards and public institutions, and I believe that at any given time, if one
raises these matters, they may think that it is going against them. I think it is the institution that they represent, which is Parliament — How do we become part of the commission of these cases of malfeasance and improprieties and come to preside over the Reports and then take a decision on them? What should we do?
I believe the time has come for
us to really interrogate this matter, and take a firm decision as to whether it is right for Hon Members of Parliament to continue to serve on boards and corporations, especially on the Entity Tender Committees, and then we have these Reports come to us on cases of serious improprieties and malfeasance. What do we do? That is my first observation.
The second relates to an issue
that I raised in respect of the setting up of the Committee as prescribed by article 107 of the 1992 Constitution. As I reminded the House the other time, at the time the Hon Minister for National Security, Mr Albert Kan- Dapaah, was chairing the Public Accounts Committee, this matter came up strongly and the House decided to follow-up, to set up that Committee in the public interest. Mr
2019 Auditor-General's Report on PBC & Other Statutory Insts.
Speaker, it was suggested to us that that Committee should be established on the lines of the Committee as provided for under article 278(1)(c) of the 1992 Constitution.
Mr Speaker, while you were not
here the other day when I raised it, I
would indicated to Hon Members that
it was important that we had this
Committee established before this
Meeting adjourns sine die on the
Wednesday, 21st December, 2022.
Mr Speaker, I would go back to
that issue and invite you to have a
meeting with Leadership to
deliberate on the way forward on this
matter before we liaise with the Chief
Justice to have this Committee
established before we adjourn. This is
because we keep adopting these
Reports and we keep seeing cases of
malfeasance, yet, we are unable to
take a firm decision on them apart
from these Audit Implementation
Committees that exist in the various
Ministries, Departments and
Agencies (MDAs). We should be
bold on this.
Mr Speaker, as I said, I would
invite you to call for a meeting
involving Leadership for us to
interrogate this matter and take a firm
position on it, then liaise with the
Chief Justice so we know what to do
before we adjourn sine die on
Wednesday, 21st December, 2022.
Mr Speaker, having said so,
there are a few observations — Again I look at the bullet numbered 6.0 of
the Committee's Report. There, we are told that the total irregularities
stood at GH₵5.46 billion which included US$4.86 million dollars to
be paid at that time at the rate of
GH₵5.68 to US$1.
Mr Speaker, if those who are
obliged to pay have not paid yet and
have to pay now, they should be
made to pay the current rate of the
cedi equivalent of $1 which is,
officially, GH₵14.35. That is what they should be paying and not the
recommended rate, in 2019, of
GH₵5.68. And it applies to all other currencies: the Pound Sterling and
the Euro — one who was required to pay €299,202.40 —
Mr Speaker, then we are told that the total irregularities declined by GH₵8.9 billion from the figure in the year 2017 which was GH₵12 billion to only GH₵3 billion in the year 2018. That was very significant. However, it climbed up again by 81.8 per cent. What is the reason for that?
2019 Auditor-General's Report on PBC & Other Statutory Insts.
Maybe the Committee should have informed us on what really caused the dramatic climb back of the irregularities from GH₵3 billion to GH₵5.68 billion. That is a climb back by 81.8 per cent. What really occasioned that? Maybe the Committee should have furnished us with further and better particulars about that aside just noting that it climbed up by that margin. What really was the reason for it? Because if we have to propose cures, we must know what occasioned that but I think the information given us is a bit deficient with respect to the causes.
Mr Speaker, again, the
procurement irregularities is my prime concern. As I said, I am not too sure that any of our Members of Parliaments (MPs) who were serving on the Procurement Entity Tender Committees (ETCs) have made any report to us about instances or cases of malfeasance wherever they are and that really puts them in a very precarious position. So, let us take a firm decision on these matters because, last week, the Report from the Public Accounts Committee carried the same thing, that is, procurement irregularity where we have MPs serving and I think we should come clean on this, lest, the public may take us on as being complicit in these matters.
Mr Speaker, let us interrogate it and see whether or not, subsequent
to that we may not have to amend the Public Procurement Act, 2003 (Act 663) which obligates depopulating
the populating of certain Entity Tender Committees by MPs.
Mr Speaker, I thank you very much.