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Kumbungu District validates Staff of a School that never exists and are Paid Salaries – OSP

21st May 2024

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Ferdinand | EducationGhana | May 21 | Kumbungu District validates Staff of a School that never exists and are Paid Salaries – OSP

The OSP uncovers fraudulent salary payments to a non-existent school by the Kumbungu District Education Directorate. Learn about the investigation’s findings and implications for Ghana’s public sector payroll.

The Office of the Special Prosecutor (OSP) has revealed a startling discovery in its ongoing audit of the government payroll system in Ghana’s Northern Region.

Specifically, the investigation uncovered that the Kumbungu District Education Directorate has been validating and paying salaries to staff of a school that never existed within the district.

This fraudulent activity was part of a broader investigation into payroll discrepancies involving educational institutions under the Ghana Education Service (GES) and the Tamale Teaching Hospital.

Non-Existent School in Kumbungu District

The OSP’s audit revealed that the Kumbungu District Education Directorate has been disbursing salaries to employees purportedly working at a non-existent school. This fraudulent practice highlights significant lapses in the payroll validation processes within the district.

Unauthorized and Inactive Validators

The investigation also found that the payroll system was plagued by the use of unauthorized and inactive validators. Many validators continued to process payrolls despite being deceased, retired, or transferred. This misuse of credentials exacerbated the issue, leading to unearned salaries and financial losses.

Ghost Names and Unearned Salaries

The initial phase of the OSP’s investigation identified and blocked several “ghost names” on the payroll, resulting in the immediate uncovering of GH¢2,854,144.80 in unearned salaries. The broader investigation saved the government a total of GH¢34,249,737.6 for the 2024 financial year by removing these and other irregular entries from the payroll.

Impact and Future Implications

The findings from the OSP and CAGD’s joint effort underscore the need for stringent oversight and reform in payroll management within Ghana’s public sector. The uncovering of such significant fraud points to systemic weaknesses that must be addressed to prevent future financial malfeasance.

Recommendations for Reform

Strengthen Payroll Validation Processes: Implement robust checks to ensure that all validators are authorized and active. Regular audits should be conducted to verify the existence and operational status of all entities receiving government funds.
Enhance Inter-Agency Collaboration: Foster continued cooperation between agencies like the OSP and CAGD to maintain rigorous oversight of public sector payrolls.
Implement Advanced Technology Solutions: Utilize modern technology and data analytics to detect and prevent payroll fraud. Systems should be designed to flag suspicious activities and validate personnel credentials automatically.

The revelation that the Kumbungu District Education Directorate was validating and paying salaries to staff of a non-existent school is a stark reminder of the critical importance of accountability and oversight in public sector financial management.

The joint efforts of the OSP and CAGD have not only uncovered significant fraud but also set a precedent for future financial integrity initiatives. By addressing these systemic issues, Ghana can ensure that public funds are used effectively and transparently for the benefit of its citizens.