The 2021 Auditor General’s report revealed that the Social Security and National Insurance Trust (SSNIT) has paid contractors for no work done with contract irregularities discovered totalling GH¢283,778,072 22.
In its 2021 report, the Auditor-General’s Department indicated that included in the irregularities figure of GH¢283,778,072 is an amount of US$36,890,553.79 (GH¢221,568,355) paid by the Social Security and National Insurance Trust (SSNIT) to a contractor in excess of work performed on a project.
“These mainly relate to the payment for construction projects not undertaken at various public boards, corporations and other statutory institutions. I, therefore, urge the managements to strengthen controls over contracts.”
2021 Auditor General’s report
The Auditor-General’s report, meanwhile, called on managements of government institutions to “ensure that funds are available in order to engender the speedy completion of earmarked projects and ensure that payments are made for work done”.
Government yet to settle public sector SSNIT contributions
The 2021 Auditor-General’s Report further revealed that Government is yet to settle public sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT), amounting to GH¢4.33 billion.
The report is therefore, recommending that management should liaise with the Controller and Accountant General’s Department and the Ministry of Finance on the payment plan for defraying the outstanding debt. It also wants management to explain to public workers that SSNIT already has a payment plan with the Ministry of Finance to ensure that the outstanding debt is paid.
The report mentioned that government has so far made some efforts to settle the indebtedness, citing the year 2020 in which two bonds totaling ¢1 billion were received as part payment of the indebtedness.
The report further noted that 10 out of 45 unlisted equity companies SSNIT invested in, have not been paying dividend to the Trust for some years now.
“We noted that 10 out of 45 unlisted equity companies SSNIT invested in, have not been paying dividend to the Trust for the past 10 years. The total investment value of the ten companies stood at GH¢150.30 million.
“According to management and from our reviews, these investments were all legacy ones. Management however, provided the following explanations and actions that they are currently pursuing to normalize the situation.”
2021 Auditor General’s report
The report therefore recommended that management should assess the operations of the companies to ascertain the reasons behind the poor performance and take strategic decisions that would safeguard the interest of the Trust.
Some Notable SSNIT Investments
The 2021 Auditor General’s Report pointed out that, Golden Beach Hotel Limited, which is one of the companies SSNIT invested so much in, continues to record losses, hence their inability to declare and pay dividends. However, the report explained that the recent weak performance has been due to the impact of the COVID-19 pandemic.
“The Trust is at an advanced stage in the process of seeking a strategic investor, and a transaction adviser has been working on the selection process.”
2021 Auditor General’s report
According to the report, another company which SSNIT has equity stake in is CDH. The report stated that the company is not doing well as two key subsidiaries, Ivory Finance and CDH Asset Management have been liquidated and licenses withdrawn by their respective regulators during the financial sector clean-up.
The report noted that SSNIT stake has been for sale since 2014 but there has been no offer for the past five years.
Bayport Financial Services Limited is also SSNIT’s investment. The report indicated that the company has not paid dividends since the merger between CFC Savings and Loans and Bayport Financial Services in 2016, mainly because of the integration of the operations of the two companies.
“Integration has been completed and staff downsized. Currently, the company has a positive Income Surplus so looking forward to paying dividends when it records profit; monitoring the company’s current progress.”
2021 Auditor General’s report
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