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23 August 2017

42 NVTI staff blow GH₵30,856 loan cash

A loan amount worth GH₵32,582.04 that was advanced to 42 staff of the National Vocational Training Institute between 2011 and 2012 has still not been recovered, a 2015 report of the Auditor-General on the public accounts of Ghana has revealed.

The amount, according to the report, was released from the NVTI’s internally generated fund (IGF).

Twelve out of the 42 officers who were granted the loans have since paid back only GH₵1,725.64, leaving GH₵30,856.40 in arrears as at December 31, 2012.

The report however, did not disclose how much was granted each of the 42 officers.

The delay in recoveries ranges between one and two years period.

What is so alarming, the report further revealed, was the fact that the twelve officers servicing private loans were granted additional advances, thereby making it very difficult for the Controller & Accountant General (C&AG) to deduct the loan money from their salary at source.

“The foregoing situation which contravened the above Regulation 113(1) of FAR, 2014 (L.I.1802) and Regulation 112 of the FAR was made possible due to management’s lack of vigilance to determine staff who have contracted private loans from companies which were being deducted at source by C&AG from their salaries. It was therefore not possible to effect the deduction through C&AG as they had exceeded the maximum deductions of 40% from staff salaries.

“The lapse could be attributed to management’s failure to apply Regulation 112 (b) of the FAR, 2004 by ensuring that beneficiaries make direct payments in anticipation of the commencement of deductions by the Controller and Accountant-General. Besides, the defaulters prefer servicing the private loans rather than the advances since management did not put any pressure on them,” the report in part stated.

According to the report, the non recovery of the loan amount resulted in a huge debtors’ balance of GH₵110,784.94 as at end of the 2012 financial year.

The delay in payment of these debts, it further stated, has also deprived other staff of the loan facility.

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