The Auditor-General’s Recoveries Account, established to facilitate the collection of disallowed unearned salaries and other recoverable funds, has accumulated GH¢31.5 million as of the end of last month.
The account, created in June 2022 at the Bank of Ghana (BoG), has since transferred these funds to the Consolidated Fund, also held by the BoG. This achievement marks a crucial step in strengthening financial accountability and transparency.
As part of broader reforms, the Auditor-General’s Department introduced the Recoveries Account to enhance the retrieval of misappropriated or unlawfully retained public funds. Unearned salaries and allowances, imposed on public officials and institutions responsible for financial losses to the state, serve as key revenue sources for this account. The initiative ensures efficient collection, management, and utilization of these funds for national development.
Speaking to the Daily Graphic in Accra, Auditor-General Johnson Akuamoah Asiedu highlighted the success of the initiative, noting that it has simplified the process for individuals and institutions to fulfill their financial obligations.
“The Recoveries Account has made payments more accessible while improving transparency and accountability in public financial management,” Mr. Asiedu stated.
He emphasized that the GH¢31.5 million recovered so far demonstrates the effectiveness of the system in curbing financial mismanagement and reclaiming state resources. The transfer of funds to the Consolidated Fund aligns with constitutional requirements, ensuring that public revenue supports national budgetary allocations and development projects.
Strengthening Recovery Efforts
Mr. Asiedu described the account as a crucial tool for holding accountable those flagged in audit reports. Before its establishment, recovering surcharges and other funds was a cumbersome process, plagued by delays and a lack of a centralized system. The new approach has streamlined recoveries, making them more efficient and transparent.
The Auditor-General further disclosed that his office is collaborating with other institutions, including the Office of the Attorney-General, to revise surcharge laws and improve enforcement mechanisms.
“Our commitment extends beyond just recovering funds; we aim to restore integrity to public financial management,” he affirmed.
Challenges and Public Concerns
Despite its successes, challenges persist. Stakeholders have raised concerns about delays in adjudicating surcharge-related cases and the need for stronger enforcement measures. Calls have also been made for increased public awareness on the role of the Recoveries Account in promoting financial accountability.
Responding to these concerns, Mr. Asiedu reassured the public that efforts are underway to address inefficiencies in the recovery process. “We are continuously engaging stakeholders to enhance efficiency. Our priority is to ensure that every pesewa is accounted for and used in the best interest of Ghanaians,” he stated.
The Evolution of the Recoveries System
Previously, the Auditor-General’s recommendations for recovering unearned salaries were directed to the Controller and Accountant-General’s Suspense Account (CAGSA). However, the lack of real-time data hindered enforcement efforts. To address this, the Recoveries Account was introduced to improve tracking and reporting on recoveries from audit recommendations.
By June 2023, over GH¢11.52 million in disallowed unearned salaries and allowances had been deposited into the account, with GH¢10 million transferred to the Consolidated Fund. In December 2023 alone, GH¢9.5 million was remitted, bringing the total transfers for that financial year to GH¢19.5 million.
Audit reports presented to Parliament annually highlight persistent financial irregularities in public institutions. A 10-year review by the Daily Graphic revealed that such infractions have cost the state approximately GH¢99.57 billion.
