The Auditor-General is raising issues with what he calls poor financial due diligence by some state institutions.

This is because it has emerged that some of these state institutions are facing difficulties retrieving money lodged with some of the collapsed financial institutions.

According to the audited report covering 2020, the University of Cape Coast’s investment portfolio revealed that it could not access its funds of GH¢9,123,532.57 invested with First Banc and Gold Coast Fund Management.

Securities and Exchange Commission (SEC) on November 8, 2019, revoked the licenses of these investment companies casting doubt on the University’s ability to get the money back.

The Auditor-General attributes the lapse to insufficient due diligence performed on these companies before the investment and warns that the University stands the risk of losing the GH¢9,123,532.57 investment.

The report recommends that Management pursues recovery of the investments from First Banc and Gold Coast Fund Management receivers through the Securities and Exchange Commission.

The University of Cape Coast, in response, said it has written to PricewaterhouseCoopers (PwC) receiver of the affected fund management Companies on procedures required to claim the lock-up investment.

It further indicated that the affected fund management Companies have proceeded to court, and the University is awaiting the determination by the court to see the way forward.

The Northern Electricity Company (NEDco) has total collections of GH¢1,743,877.02 lodged at the Tisuugtaaba Community Bank Ltd and GN Bank Ltd but were not transferred to GCB Bank Power Sales and security Deposit accounts as required by the company’s own internal arrangement.

According to the report, these anomalies occurred because the banks were in a financial crisis.

Again, the Area Finance Officer’s ineffective follow-ups to insist on monthly transfers contributed to the anomaly.

This, the report says has an unfavourable financial implication on the Company and Management stands the risk of losing the funds.

NEDCo, in the report, has written to Tisuugtaaba Community Bank Ltd. to transfer the amounts to NEDCo.

Several follow up visits according to the entity, have also been made. However, the bank has not been able to transfer the amounts to NEDCo accounts.

Management, the report said, has filled the required forms and submitted them to the liquidator of GN Bank.

However, NEDCo has not had any information about when the funds would be released, even though Management keeps pursuing the funds.