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Mon, Dec

GHANA SAVED GHC132M FRAUD

Business & Economy

An audit conducted by the Nana Akufo-Addo administration has revealed a whopping sum of GHC131, 958,407.51 could have gone to the dogs had the baton of governance not changed in December 2016.

An audit conducted by the Nana Akufo-Addo administration has revealed a whopping sum of GHC131, 958,407.51 could have gone to the dogs had the baton of governance not changed in December 2016.

 

In yet another litany of fraud associated with the exited National Democratic Congress administration under John Mahama, the watchful new administration has succeeded in saving the nation an amount of GHC132m with regards to claims that the government owed the Energy Ministry.

The revelation came up in the Auditor General’s Report on MDA liabilities as at 31 December 2016.

The Energy Ministry had asserted that it  contracted Mes-Bre Ltd for the supply of Pole Top Accessories  in October 2014 at a contract value of GH¢39,557,911.21.

According to the Ministry, Government was indebted to MesBre Ltd an amount of GH¢6,172,509.00 as at 31 December 2016, for part execution of the contract.

“To ascertain the veracity of this claim, we reviewed all the transactions including the invoices and payments relating to Mes-Bre Ltd. and noted that two payments totalling GH¢36,498,132.40 per PV Nos.  MoP/HQ/AS/IL/15/0021 and MOP/HQ/AS/IL/16/009 made up of GH¢21,498,132.40 and GH¢15,000,000.00 respectively were processed on GIFMIS and paid to Mes-Bre Ltd,” the report read.

It added that further reconciliation with management revealed that the actual balance in favour of Mes-Bre was GH¢1,079,678.81 and not GH¢6,172,509.00 as claimed.

The Ministry also claimed that government owed Busi & Stephenson Ghana Ltd GH¢1,540,689.12 for partial delivery of the contract and in ascertaining the validity of indebtedness to the Ministry of Finance to Mes-Bre Ltd for the supply of Pole Top Accessories, “the Ministry presented an amount of “GH¢6,172,509.00 as at 31 December 2016, for part execution of the contract”.

“It was realized that two payments “totaling GH¢36,498,132.40 per PV Nos. MoP/HQ/AS/IL/15/0021 and MOP/HQ/AS/IL/16/009 made up of GH¢21,498,132.40 and GH¢15,000,000.00 respectively were processed on GIFMIS and paid to Mes-Bre Ltd.

Further reconciliation with management revealed that the actual balance in favour of Mes-Bre was GH¢1,079,678.81 and not GH¢6,172,509.00 as claimed,” the report stated.

The Ministry again said government owed one company by name Byes & Ways Ltd an amount of GH¢28,404,803.80 for the supply of Wooden Poles and Stay Blocks.

However, a review in connection with the transaction reviewed that the amount of GH¢25million was paid on 16 December 2016 leaving an outstanding amount of GH¢3,404,803.90.

“We therefore rejected the liability of GH¢28,404,803.80,” the report noted.

Another claim was an amount of GHC6, 104,732.33 in relation to government’s indebtedness to Best Link Eng Ltd.

“To ascertain the genuineness of the assertion we reviewed the relevant documentations and noted that the entire amount was paid in two installments.  On the 30 November 2016, MoF issued a Warrant No 1631187 amounting to GH¢2million to effect the payment of GH¢198,419.33 among others on 28 December 2016.  A second Warrant No. 1632474 for GH¢6,998,000.00 was also paid through the GIFMIS system to cover the invoice amount of GH¢5,906,313.00 among others,” the report stated.

To this end, the Auditor General indicated that it had rejected the total claim of GH¢6,104,732.33 declared as liability as at 31 December 2016.

The report also rejected a claim of GH¢25,460,000 and recommended for a recovery of GH¢2,101,383.75. This was in relation to an amount of GH¢25,460,000 for UCL Ltd for the supply of Aluminum Conductors under NES at a contract value of GH¢35,460,000 in March 2016.

On TOR, a claim of GH¢72,000,000 submitted by Ministry on behalf of TOR on the plant stabilisation and profitability as government liability as at 31 December 2016 was also rejected.

“To ascertain the authenticity of the claim we requested for the relevant supporting documents which the MoEn could not produce except a GIFMIS PV extract referenced. In the absence of further documentation we rejected the claim of GH¢72, 000,000,” it read.

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