PAC Ghana Refers KATH, Ridge Hospital, and 10 Others to Attorney General for Prosecution

Introduction

In a bold move to enforce fiscal accountability in Ghana’s public sector, the Public Accounts Committee (PAC) of Parliament has referred 12 entities—including two major hospitals, Komfo Anokye Teaching Hospital (KATH) and Ridge Hospital—to the Attorney General’s office for prosecution. This action follows the entities’ failure to recover specified financial losses highlighted in the Auditor-General’s reports within a strict 30-day deadline.

Understanding the PAC Ghana referral process is crucial for grasping how parliamentary oversight combats financial irregularities like unretired imprest, unearned salaries, and questionable payments. This development underscores Parliament’s commitment to the Public Financial Management Act and Article 187(5) of the 1992 Constitution, signaling a shift from administrative queries to potential criminal charges against responsible officers.

For citizens, public servants, and stakeholders tracking Ghana Auditor General reports and accountability measures, this case highlights the consequences of non-compliance in Ministries, Departments, and Agencies (MDAs). Reported on November 3, 2024, by Life Pulse Daily, the referral involves tens of millions of Ghana Cedis in state losses, emphasizing the need for transparent financial recovery in public institutions.

Analysis

The PAC Ghana’s decision marks a significant escalation in enforcing public sector accountability. During a committee sitting on November 3, 2024, Ranking Member Samuel Atta-Mills, MP for Komenda-Edina-Eguafo-Abrem, firmly stated that entities failing to retrieve lost funds within 30 days would face referral to the Attorney General for prosecution. “It’s just that straightforward,” he emphasized, adding that some might prefer “sitting in court.”

Background on the Auditor-General’s Role

The Auditor-General of Ghana, through annual reports on public accounts, identifies irregularities such as unretired imprest (advances not accounted for), ghost salaries (unearned payments), and dubious expenditures. These reports, mandated under the 1992 Constitution, form the basis for PAC scrutiny. Assistant Auditor-General Michael Addo updated the committee, noting that despite directives post-hearings, the 12 entities had not fully recovered the funds one month later.

Why KATH and Ridge Hospital?

Komfo Anokye Teaching Hospital (KATH) and Ridge Hospital, key pillars of Ghana’s public healthcare system, are among the referred entities. Their inclusion highlights vulnerabilities in healthcare MDAs, where financial mismanagement can directly impact service delivery. The full list spans various MDAs, with total losses estimated in tens of millions of Ghana Cedis.

PAC’s Enforcement Mechanism

PAC operates as Parliament’s watchdog, examining Auditor-General findings and issuing recovery directives. Non-compliance triggers referrals to the Attorney General, transforming audit discrepancies into prosecutable offenses under Ghanaian law. This process educates public officers on the gravity of fiscal irresponsibility.

Summary

Ghana’s PAC has decisively referred 12 public entities, including KATH and Ridge Hospital, to the Attorney General due to unmet 30-day financial recovery deadlines from Auditor-General flagged losses. Key infractions include unretired imprest and unearned salaries. This step invokes constitutional powers to pursue prosecutions, aiming to recover state funds and deter future violations across MDAs.

Key Points

Practical Advice

For public officers and MDAs navigating PAC Ghana referrals and Auditor-General audits, proactive compliance is essential. Here’s pedagogical guidance:

Steps for Financial Recovery

1. Immediately review Auditor-General reports for flagged items.
2. Conduct internal audits to trace unretired imprest and irregular payments.
3. Submit recovery plans to PAC within deadlines (e.g., 30, 60, or 90 days).
4. Document all retrievals with verifiable receipts and reconciliations.
5. Train staff on Public Financial Management Act requirements to prevent recurrence.

Best Practices for MDAs

Implement digital tracking systems for imprest and salaries. Regular reconciliations reduce risks of Ridge Hospital financial irregularities or similar issues. Engage internal auditors early to align with PAC directives, fostering a culture of transparency.

Points of Caution

Non-compliance with PAC recovery orders carries severe risks:

• Criminal Prosecution: Personal liability for officers, leading to court appearances and potential imprisonment.
• Financial Penalties: Surcharges for losses, plus interest.
• Reputational Damage: Especially for vital institutions like KATH, affecting public trust in healthcare.
• Escalation: PAC may extend referrals to 60- or 90-day defaulters, as hinted by Atta-Mills.
• Audit Frequency: Expect intensified scrutiny in future Auditor-General cycles.

Officers should avoid underestimating directives; historical PAC cases show consistent enforcement.

Comparison

This PAC referral echoes prior actions but escalates in scope. In 2023, PAC referred several MDAs for similar Auditor-General findings, recovering over GH¢500 million but prosecuting fewer high-profile cases. Unlike routine queries, the inclusion of flagship hospitals like KATH and Ridge Hospital amplifies visibility.

Past vs. Current Referrals

Compared to education sector referrals, healthcare cases like this prioritize service continuity, urging faster AG action.

Legal Implications

Applicable under Ghanaian law, this referral leverages Article 187(5) of the 1992 Constitution, empowering PAC to recommend prosecutions for Auditor-General confirmed losses. The Public Financial Management Act (Act 921) criminalizes failures in fund accountability, with penalties including fines, imprisonment, and surcharges.

Prosecution Process

The Attorney General must evaluate PAC and Audit Service evidence, potentially charging under sections on misappropriation (e.g., Section 179 of Criminal Offences Act). Culpable officers face trials in High Court, with appeals possible. Successful cases mandate fund restitution, deterring KATH prosecution-like scenarios.

Constitutional Safeguards

Defendants retain rights to fair hearings, but PAC’s prima facie evidence strengthens AG cases. This upholds separation of powers while ensuring fiscal discipline.

Conclusion

The PAC Ghana referral of KATH, Ridge Hospital, and 10 entities to the Attorney General represents a pivotal moment in public financial accountability. By addressing Auditor-General flagged irregularities head-on, Parliament reinforces the rule of law, protects taxpayer funds, and sets a precedent for MDAs. As prosecutions unfold, expect heightened compliance, fund recoveries, and improved governance. Stakeholders must prioritize transparency to avoid such escalations, ultimately benefiting essential services like healthcare.

This case educates on the interplay of audit, oversight, and justice in Ghana’s democracy, promising a more accountable public sector.

FAQ

Sources

• Life Pulse Daily: “PAC refers KATH, Ridge Hospital and 10 others to AG for prosecution” (Published November 3, 2024).
• Ghana Audit Service Reports (Annual Public Accounts).
• 1992 Constitution of Ghana, Article 187(5).
• Public Financial Management Act, 2016 (Act 921).
• Parliament of Ghana Official Records (PAC Sitting, November 3, 2024).