The Public Accounts Committee (PAC) of Parliament, last Friday, grilled officials of the Youth Employment Agency (YEA) over a sharp increase in office rent payments, failure to remit pension contributions and payment of unearned salaries as part of infractions flagged by the Auditor-General’s 2024 report.

Appearing before the committee were the Chief Executive Officer of YEA, Malik Basintale; the agency’s Finance Director, Benjamin Otto, its internal auditor and officials from the Ministry of Youth Development and Empowerment.

High rent

At the centre of the hearing was a rent agreement between YEA and K&A Developers Limited, the private managers of the Olympic House, which houses the agency.

According to the Auditor-General’s report, the YEA’s expenditure on rent and service charges rose from GH¢3.2 million in 2023 to GH¢5.5 million in 2024—a 72.65 per cent increase.

Committee members questioned why the agency continued to pay such high amounts without seeking cheaper accommodation.

The chairperson of the committee, Abena Osei-Asare, described the increment as “unacceptable,” emphasising that no negotiations were conducted before agreeing to the charges. 

Mr Basintale explained that the Works and Housing Ministry had transferred management of the property to K&A Developers, compelling YEA to pay rent to the private managers.

He, however, conceded that the arrangement was draining state resources and disclosed that the agency was in talks with the Chief of Staff to secure a permanent office to eliminate rent costs.

The committee flagged the infraction for further investigation, specifically the role of the Ministry of Works and Housing in the transfer of the state’s property to be managed by a private entity. 

Pensions, unearned salaries

Beyond the rent controversy, YEA was cited for failing to remit over GH¢1.7 million in Social Security and pension contributions on salary arrears between January and July 2024.

The Finance Director, however, told the committee that the arrears had since been cleared, with receipts submitted to both SSNIT and GLICO. The auditors confirmed the payments.

The agency was also queried for paying unearned salaries amounting to GH¢161,222 to 26 staff, some of whom had vacated their posts. While 15 of the affected staff remain at post, YEA admitted it had written to the rest to refund the respective sums and pledged to refer non-compliant cases to the police.

The members of PAC, unimpressed with the slow pace of recovery, threatened to hold management personally liable if the sums were not retrieved.

In another development, the agency paid GH¢37,413 in unearned salaries to its Nkwanta South Municipal Director, Felix Owusu Gyimah, after he assumed the role of Municipal Chief Executive.

YEA has since agreed to deduct the amount from his salary in instalments, though the committee insisted that the refund should include interest.

Other infractions, Reforms

Additional queries included the wrongful payment of GH¢21,000 in allowances to seven officers who had abandoned their posts in Tuobodom, and withholding tax shortfalls on rent payments to private facility managers.

Mr Basintale assured the committee that internal control systems were being strengthened, with training for district directors and monitoring officers, to prevent future lapses.

He also acknowledged challenges in beneficiary validation and promised reforms to reduce the burden on staff, particularly for those who travelled long distances for monthly verification.

“When I took over, we realised that we had inherited assets and liabilities.

It was in our interest to streamline the processes at the YEA… there are the new reforms we've brought on board, and we shall ensure that they are strictly adhered to,” he said.