Audio By Carbonatix
Crime Analyst Ransford Nana Addo Jnr has described the GH¢68.7 billion arrears and payables scandal as deliberate acts rather than administrative oversights, urging Parliament, the Attorney-General and state agencies to probe deeper into the beneficiaries of government contracts.
Speaking on JoyNews on March 11, Mr Nana Addo Jnr said the audit report should be seen only as the beginning of the investigative process.
“First of all, let me say that the audit report is not an end in itself. A lot of work still needs to be done. Who were the beneficiaries of these funds? When were these companies established? Were they even in existence when the contracts were announced?” he asked.
He warned that some companies may have been created solely to access government contracts.
“I would not be surprised if some of these companies were registered just within the period these projects were announced. Many of these businesses did not exist before the projects,” he said.
Although forming a company shortly before bidding for a contract is not illegal, he described the practice as a red flag that requires closer scrutiny.
“It is not a crime, but it signals a need for thorough investigation. Ghana is 69 years old. We cannot award contracts to companies that appear overnight just to secure a project,” he added.
Mr Nana Addo Jnr stressed the importance of tracing the ownership of such companies, noting that individuals with political influence or connections could be among the main beneficiaries.
“These are not administrative lapses. These are deliberate acts intended to make money that should have gone to the state,” he said, adding that such practices have occurred under successive governments.
He also questioned whether the issue would have come to light without a change in government.
“If there hadn’t been a change in government, would this have come to light the way we see it today? My answer is no. The people in these institutions know what is right. This is why a thorough investigation is crucial to ensure accountability,” he said.
Background
Parliament has referred a special audit report on GH¢68.7 billion in government arrears and payables to the Public Accounts Committee (PAC) for investigation after the exercise uncovered suspected irregularities, falsified records and questionable payment claims.
According to the report, the Ghana Audit Service, in collaboration with international professional services firms Ernst & Young (EY) and PricewaterhouseCoopers (PwC), conducted a verification and validation exercise on arrears submitted to the Finance Ministry by various ministries, departments and agencies.
The audit focused on unpaid Interim Payment Certificates (IPCs), invoices and Bank Transfer Advices (BTAs) owed to contractors and suppliers.
In total, claims amounting to GH¢68.7 billion were presented for verification. However, the audit found that GH¢8.1 billion of the claims could not be validated and were therefore rejected.
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