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.
- Halt operations in Tano Nimiri Forest Reserve – Lands Ministry tells Chairman ‘Wontumi”s mining company
- Mankessim murder: Accused persons allegedly confess to killing 2 more people
- SIM re-registration: National Security has warned Akufo-Addo against blockage – Deputy Minority Whip
- Police confirm another murder orchestrated by Mankessim suspects
- Video of alleged ‘galamsey’ men in gun battle with authorities emerges on social media
- Banking Sector Clean-up: We should have allowed institutional disciplines to work – Alhassan Andani
- Prosecution is an attempt to tarnish his reputation – Danadams Pharmaceuticals CEO lawyers
- State TV off-air amid gunfire in Burkina Faso
- Banking sector crisis was not systemic – Alhassan Andani
- GRA set to roll out E-invoicing from tomorrow October 1
- Show commitment to ‘galamsey’ fight by prosecuting Akonta Mining firm – John Jinapor dares government
- UK-based Hendon Golf Club donates to develop juvenile golf in Ghana
- Kuneli releases new single ‘Make I Know’
- ‘A well-deserved honour’ – Bawumia eulogises Dr. Addo Kufuor as new Chancellor of KTU
- Dog owners, breeders to raise 5k doses of anti-rabies vaccine for free vaccination in Ashanti Region
- ECG extends weekend working hours due to vending challenges
- 23 senior high schools attend WiSTEM KNUST Stanbic girls’ camp
- Invest in Africa’s climate adaptation transition – One.Org invites world’s wealthiest countries to support Africa
- Insecurity, self-doubt and fear nearly crushed my dreams but I triumphed – UPSA Law School valedictorian
- I won’t think twice about a Ghana call-up – Salis Abdul Samed
- Directive for Chairman Wontumi’s mining firm to stop work not enough, A-G must step in – OccupyGhana
- Ibrahim Gusau elected Nigeria Football Federation president
- Ghanaian footballer in the US dies in car crash
- Sadiq Abdulai Abu resigns as CEO of 3Music Networks
- I didn’t do music for fame, I wanted to inspire people – Zahara