A new report released by Imani Ghana titled “Imani’s Fiscal Recklessness Index” has revealed that financial irregularities cost Ghana GHS 5.9 billion from 2012 to 2014 due to failure to adhere to rules and regulations pertaining to debt management.
According to the report, the irregularities were mainly due to violations of rules, flagrant disregard for the financial administration regulations and the Public Procurement Act, non-adherence to tax laws and procedures, and failure to strengthen controls.
The report which ranked Financial Irregularities for MDAs, Boards of Public Corporations, Polytechnics and Pre-University Institutions also pointed out that cash irregularities under the same period amounted to GHS 985,181,733.74 representing 16.5% of total irregularities.
“These were mainly due to gross violations of the financial administration regulations and also poor accounting systems,” the report explained.
Outlining some more reasons, the report stated that, consistent non-recourse to procurement committees and provisions provided in the Public Procurement Act amounted to GHS 119,714,853.29 representing 2.02% of total irregularities.
Focusing on Tax irregularities, it revealed that failure to adhere to tax laws resulted in MDAs losing GHS 290,749,374.37, representing 4.8% of total irregularities.
“Contract irregularities due to failings in strengthening controls and non-compliance with tendering procedures, amounted to GHS 322,940,570.12 representing 5.4%”, it said.
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By: Lawrence Segbefia/citibusinessnews.com/Ghana