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PAC queries Labour Ministry over missing GH¢223,000 vehicles

PAC queries Labour Ministry over missing GH¢223,000 vehicles

The Public Accounts Committee (PAC) of Parliament has raised serious concerns over the disappearance of two vehicles reportedly procured by the Ministry of Labour and Employment more than a decade ago, as well as the accumulation of interest on delayed payments linked to the transaction.

The issue emerged during the committee’s examination of the Auditor-General’s special audit report on GH¢68.7 billion government arrears, which flagged a payment claim amounting to GH¢223,127.

According to the audit report, the amount relates to the procurement of two Nissan Tiida saloon cars that cannot currently be traced. Auditors also noted that the Ministry failed to provide adequate supporting documentation for the transaction, raising concerns over accountability and record management within the institution.

Appearing before the committee on May 18, the Ministry’s Director of Finance, Mary Ninson, admitted that records connected to the procurement could not be located.

She explained that the vehicles were “supposedly” purchased in 2011, but the Ministry currently lacks sufficient documentation to verify the transaction or confirm the whereabouts of the vehicles.

Mrs. Ninson told the committee that Ministry officials had already informed the Auditor-General during the audit process that the relevant records were missing.

According to her, some payments linked to price adjustments for other procurement items had been made over the years, but delays in settling outstanding balances resulted in the accumulation of interest charges.

She indicated that the Ministry of Finance had been informed about the situation and the growing liabilities arising from delayed payments.

The Director of Finance further revealed that records relating to the procurement of two-horsepower air conditioners were also missing, making it difficult for the Ministry to validate the claims associated with those purchases.

She explained that after concerns were raised during the audit, auditors contacted the relevant institutions and suppliers for clarification. However, no official responses or original records were received.

When committee members questioned how the Ministry attempted to verify claims related to the vehicles, Mrs. Ninson disclosed that the Ministry engaged Japan Motors and other relevant parties after the issue surfaced during the audit process.

According to her, the Ministry was only able to obtain photocopied documents, with no original records available to support the transaction.

Mrs. Ninson stressed that original documentation remains a critical requirement in validating government payments and procurement claims.

She noted that photocopies alone are insufficient for authorizing payments, especially in cases involving public funds and unresolved procurement issues.

“Without key supporting documents, including invoices and original records, the Ministry cannot validate or approve any payment for settlement,” she stated before the committee.

The PAC also examined another procurement-related infraction involving claims for price adjustments on two Toyota Hilux automatic pickup vehicles.

An amount of GH¢30,000 was flagged as accrued interest resulting from delayed payment for the vehicles.

Mrs. Ninson acknowledged that the amount represented interest charges the Ministry was expected to pay due to the delay in settling the procurement costs.

Members of the Public Accounts Committee expressed concern over the apparent breakdown in documentation and record-keeping systems within the Ministry, warning that such lapses undermine transparency and accountability in the management of public resources.

The committee is expected to continue its review of the matter before making a final determination and possible recommendations regarding the outstanding claims and missing assets.

The Auditor-General’s special audit into government arrears has exposed several irregularities across multiple state institutions, including unsupported claims, delayed payments, missing records and procurement breaches amounting to billions of Ghana cedis.

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