The Wa East District Assembly has been set aback with over 114,996.54 Judgement Debt over some Lapses in an Award of a CHPS Compound Project.
This was Revealed in Report of the Auditor General on the Management and Utilisation of the District Assemblies Common Fund and other Statutory Funds for the year ended 31 December 2022.
Section 7 of the Public Financial Management Act, 2016, Act 921 requires a principal Spending Officer to in the exercise of duties under this Act; establish an effective system of risk management, Internal control and Internal Audit in respect of the resources and transaction of the covered entity.
The Wa East District Assembly awarded construction of 1no CHIPs compound, Gudayiri to Samaha Ent., on 24/3/2016 at a contract sum of GH¢199,980.98. The project
was completed on 24th of July 2016.
The total amount of GH¢117,386.73 was paid leaving outstanding balance of GH¢82,593.25 but the assembly was unable to pay leading to the Wa high court awarding a judgement debt of GH¢114,996.53.
The outstanding balance together with the judgement debt was paid from the District Assembly’s common fund Account.
The Finance Officer explained that the payment of the judgment debt resulted from lack of funds and the delay in the release of the common fund.
Non-payment of outstanding balance of GH¢82,593.25 in spite of our recommendation in the 2021 Auditor General’s report, has led to the Assembly being slammed with a judgement debt of GH¢114,996.53
The Auditor General’s Report recommended that the Chief Executive and Coordinating Director whose inaction resulted in this avoidable loss of funds should be sanctioned. We also recommended that the judgement debt should not be paid from the Common Fund account but from IGF.
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