Significant Savings Uncovered: OSP and CAGD’s Joint Effort Saves Ghana GH¢34 Million

By
Ellis Ferdinand
-
COLA TEACHERS NOMINAL CAGD NaBCO WORKERS TEACHERS

Ferdinand | EducationGhana | May 21 | Significant Savings Uncovered: OSP and CAGD’s Joint Effort Saves Ghana GH¢34 Million

 

The OSP and CAGD’s joint investigation saves Ghana GH¢34 million by identifying and blocking ghost names on the government payroll. Learn about the findings and future implications.

The Office of the Special Prosecutor (OSP) and the Controller and Accountant General’s Department (CAGD) has announced substantial savings for Ghana totalling GH¢34,249,737.6 for the 2024 financial year.

This remarkable achievement stemmed from an extensive audit and investigation into the government payroll system in the Northern Region, including educational institutions under the Ghana Education Service (GES) and the Tamale Teaching Hospital.

Identifying and Blocking “Ghost Names”

The initiative started in January 2024, when the OSP proactively identified and blocked several “ghost names” on the payroll. These ghost names represented non-existent employees who were erroneously or fraudulently receiving salaries. This decisive action immediately led to the discovery of unearned salaries totaling GH¢2,854,144.80.

Phase 1 Investigation Findings

The joint investigative report detailed the findings in Phase 1, Volume 1, released on Monday, May 20. The report emphasized the crucial role of inter-agency collaboration in uncovering discrepancies that might have otherwise gone unnoticed. The combined efforts of the OSP and CAGD not only addressed immediate financial irregularities but also set a precedent for future savings.

Statement from OSP and CAGD

In a press release issued on May 20, the OSP and CAGD highlighted the significance of their joint efforts. They stated that by blocking an amount of GH¢2,854,144.80 and removing deceased, retired, and missing individuals from the Government Payroll, they saved the Republic an amount of GH¢34,249,737.6 for the 2024 financial year.

Payroll Management Concerns

The investigation revealed alarming issues with the payroll management system in the Northern Region. The OSP uncovered an unexpectedly high number of unauthorized and inactive validators managing the payroll for GES and the Tamale Teaching Hospital. Disturbingly, the credentials of deceased and retired validators were still being actively used in the validation process.

They stated, “The blockade of the amount of Two Million Eight Hundred and Fifty-Four Thousand One Hundred and Forty-Four cedis Eighty pesewas (GH¢2,854,144.80) and the removal from Government Payroll of the corresponding deceased, retired, post vacators, the missing, and those whose whereabouts are unknown has saved the Republic an amount of Thirty-Four Million Two Hundred and Forty-Nine Thousand Seven Hundred and Thirty-Seven cedis Six pesewas (GH¢34,249,737.6) for the 2024 financial year.”

Misuse of Validator Credentials

The investigation revealed issues with the payroll management system in the Northern Region. The OSP discovered a high number of unauthorized and inactive validators managing the payroll for GES and the Tamale Teaching Hospital.

Deceased and retired validators’ credentials were still being actively used in the validation process.

Misusing credentials raised significant concerns about the integrity of the payroll validation procedures. The report noted that most management units were validating persons using unauthorized and inactive validators’ credentials, pointing to serious flaws in the current system and highlighting the need for immediate reforms.

The report noted, “Most of the management units were found to be validating persons using unauthorized and inactive validators’ credentials. This misuse of credentials points to serious flaws in the current system and highlights the need for immediate reforms.”

The issue of Kumbungu District GES

The OSP indicated, that in the case of the Ghana Education Service, the Kumbungu District Education Directorate validates and pays salaries to staff of a school that never existed in the district.

Future Implications

The successful collaboration between the OSP and CAGD underscores the necessity of inter-agency cooperation in combating financial malfeasance and ensuring fiscal accountability. By addressing these issues head-on, the agencies have set a robust framework for maintaining financial integrity within Ghana’s public sector.

The findings from the OSP and CAGD’s joint investigation mark a significant step towards improving the financial management of Ghana’s public institutions. The savings of GH¢34,249,737.6 for the 2024 financial year are just the beginning, with potential for further savings in future years. This initiative demonstrates the power of collaborative efforts in safeguarding public funds and ensuring they are used for the benefit of all citizens.

 

 

 

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