PAC Refers UEW to Attorney General Over GH₵28 Million Honorarium Irregularity

Introduction

In a significant development in Ghana’s public finance oversight, the Public Accounts Committee (PAC) of Parliament has referred the University of Education, Winneba (UEW) to the Attorney General (AG) for potential prosecution. This action stems from a GH₵28 million honorarium payment lacking proof of work performed. Discovered during the PAC’s review of 2024 financial statements of public universities, this UEW financial irregularity highlights ongoing challenges in accountability within Ghana’s higher education sector.

This article provides a detailed, pedagogical breakdown of the PAC UEW referral, explaining key processes, roles, and implications. Optimized for clarity, it covers the GH₵28 million UEW honorarium scandal, PAC’s directive, and steps toward recovery and prosecution, helping readers understand public financial audits in Ghana.

Analysis

The PAC’s scrutiny of public university finances revealed that UEW allocated GH₵28 million from its budget as honorarium payments without adequate justification or evidence of labor executed. Honorarium in this context refers to compensatory payments for services, typically requiring documentation like timesheets or deliverables—none of which were provided here.

Background on PAC’s Role

The Public Accounts Committee (PAC) in Ghana’s Parliament is tasked with examining government accounts, including those of public institutions like universities. Established under the Standing Orders of Parliament, PAC ensures fiscal transparency and combats misuse of public funds. During its 2024 review, PAC identified this anomaly in UEW’s statements, prompting deeper investigation.

UEW’s Internal Response

UEW management established an internal disciplinary board to probe the issue. The board recommended disciplinary actions against involved parties and mandated refunds. However, one year post-investigation, no funds have been recovered. Vice-Chancellor Professor Stephen Jobson Mitchual explained during a PAC hearing that reminders were issued, but non-compliance led to referral to the Economic and Organised Crime Office (EOCO) for enforcement.

Hearing Dynamics

Finance Officer Mr. Senyo Akorli questioned the internal probe’s dual purpose: punishment versus recovery. The Vice-Chancellor affirmed both objectives but noted recovery failures, justifying EOCO’s involvement. PAC Chairman Dr. Cassiel Ato Forson emphasized escalation, stating the referral to the AG would aid resolution and potential prosecution.

Summary

To encapsulate the PAC UEW AG referral: During a parliamentary review of 2024 public university finances, PAC uncovered UEW’s unverified GH₵28 million honorarium expenditure. Despite internal disciplinary measures and EOCO engagement, no recovery occurred. PAC has now directed prosecution via the Attorney General, underscoring zero tolerance for financial mismanagement in Ghana’s public sector.

Key Points

Practical Advice

For public institutions like universities facing similar financial audits, adherence to best practices is crucial. Here’s pedagogical guidance grounded in Ghana’s public financial management framework:

Document All Expenditures

Maintain verifiable records for every payment, including honorarium. Use standardized forms compliant with the Public Financial Management Act (Act 921), detailing services rendered, hours worked, and approvals.

Implement Robust Internal Controls

Establish audit committees and whistleblower policies. UEW’s disciplinary board is a model, but pair it with timelines for recovery, e.g., 90-day refund mandates with automatic EOCO referrals.

Prepare for PAC Scrutiny

During hearings, provide clear reconciliations. Finance officers should anticipate questions on investigation intents, as Mr. Akorli did, to demonstrate accountability.

Training for Staff

Conduct regular workshops on the Auditor-General’s guidelines for public universities. Emphasize that unverified payments risk PAC referrals and AG prosecution.

These steps mitigate risks in public university financial management, ensuring compliance and protecting institutional reputations.

Points of Caution

Financial irregularities like the UEW honorarium case carry severe repercussions:

Audit Vulnerabilities

Budget reallocations without justification expose institutions to PAC flags. Always cross-verify with the Controller and Accountant-General’s Department (CAGD) protocols.

Recovery Delays

Internal reminders often fail, as seen at UEW. Non-response prolongs issues, inviting EOCO and AG involvement—avoid by enforcing legal recovery mechanisms promptly.

Reputational Damage

Public hearings amplify scrutiny, impacting donor confidence and enrollment in universities. Proactive transparency prevents escalation.

Personal Liability

Officials risk personal prosecution under the Public Procurement Act (Act 663) for unauthorized expenditures.

Comparison

This UEW case mirrors prior PAC interventions in Ghana’s public sector. For instance, in 2023, PAC probed similar irregularities at the University of Ghana, leading to recoveries but no prosecutions. Unlike those, UEW’s persistent non-recovery prompted AG referral, highlighting PAC’s evolving enforcement.

Compared to private sector audits, public university cases under PAC involve parliamentary oversight, amplifying consequences. In 2022, Kwame Nkrumah University of Science and Technology (KNUST) faced PAC over procurement lapses, resulting in surcharges—UEW’s honorarium lacks even that resolution.

Broader context: Ghana’s Auditor-General’s 2023 report flagged GH₵14 billion in irregularities across MDAs; university cases like UEW’s represent 0.2%, yet underscore systemic issues in higher education funding.

Legal Implications

As this matter is referred to the Attorney General, potential charges fall under Ghanaian laws governing public funds:

• Public Financial Management Act (Act 921): Prohibits expenditures without appropriation; violations attract fines or imprisonment.
• Anti-Money Laundering Act (Act 1044): If intent to defraud is proven, EOCO/AG can pursue.
• Criminal Offences Act (Act 29): Sections on stealing by persons in public office (e.g., Section 131) apply to unrecovered honorarium.

Prosecution requires AG’s discretion under Article 88 of the 1992 Constitution. Past precedents, like PAC-referred cases against Metro Mass Transit officials, resulted in convictions, signaling likely pursuit here. UEW officials must cooperate to mitigate personal liability.

Conclusion

The PAC’s referral of UEW to the Attorney General over the GH₵28 million honorarium marks a pivotal enforcement in Ghana’s fight against public financial mismanagement. It reinforces PAC’s watchdog role, urging universities to prioritize verifiable spending. As proceedings unfold, this case will likely set precedents for accountability in public higher education. Stakeholders should monitor AG updates, emphasizing that transparency safeguards public trust and resources.

For deeper insights into PAC public university audits or UEW financial scandal updates, stay informed through official channels.

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