Authorities in Ghana unearthed a significant payroll fraud scheme in the country’s Northern Region, saving the government an estimated 34.2 million Ghanaian cedis (GHS) for the 2024 fiscal year.
A joint investigation by the Office of the Special Prosecutor (OSP) and the Controller and Accountant General’s Department (CAGD) exposed a system riddled with vulnerabilities and irregularities. The probe focused on employees working in educational institutions managed by the Ghana Education Service (GES) and the Tamale Teaching Hospital.
The investigation identified a disturbing trend of unauthorized and inactive individuals serving as validators within the payroll system. This lax oversight allowed for the creation of fictitious entities, like a non-existent primary school in the Kumbungu District, which appeared to have a salaried staff.
Furthermore, the probe uncovered a substantial amount – GHS 2,854,144.στήματα (Greek for “systems”) in unearned salaries paid to individuals categorized as “ghost names.” These included deceased employees, retirees, those no longer employed, or individuals whose whereabouts were unknown.
Taking Action, Reaping Rewards
By promptly blocking these fraudulent payments and removing the “ghost names” from the payroll, Ghana successfully prevented further losses. This decisive action translates to a projected saving of GHS 34.2 million for the current fiscal year.
The investigation’s success extends beyond immediate financial gains. By plugging these leaks in the system, the government can allocate saved resources towards legitimate purposes, potentially including salary adjustments for deserving employees in the future.
The OSP-CAGD collaboration serves as a strong message against corruption and mismanagement within Ghana’s public sector. The exposed vulnerabilities highlight the importance of robust oversight mechanisms and data verification processes to ensure efficient and transparent payroll administration.
Following a joint investigation, Ghanaian authorities identified and addressed significant vulnerabilities within the government payroll system in the Northern Region. The probe, conducted by the Office of the Special Prosecutor (OSP) and the Controller and Accountant General’s Department (CAGD), exposed a system susceptible to fraud and irregularities.
Focus on Education Sector
The investigation specifically targeted employees working in educational institutions managed by the Ghana Education Service (GES) and the Tamale Teaching Hospital. This focus area reflects the potential for inflated payrolls within large government agencies.
A critical finding of the investigation was the presence of unauthorized and inactive individuals serving as payroll validators. This lax oversight allowed for the creation of fictitious entities, like a completely fabricated primary school with salaried staff.
Perhaps the most concerning aspect of the unearthed scheme was the significant amount – GHS 2,854,144.80 – in unearned salaries paid to individuals categorized as “ghost names.” These included deceased employees, retirees, individuals who had left their positions, or those whose whereabouts were unknown.
Taking Decisive Action, Saving Millions
The Ghanaian government took swift action to address the exposed vulnerabilities. By blocking fraudulent payments and removing “ghost names” from the payroll, they successfully prevented further losses. This decisive action translates to a projected saving of GHS 34.2 million for the current fiscal year.
The positive impact of the investigation extends beyond immediate financial gains. By plugging the leaks in the system, the government can allocate saved resources towards legitimate purposes, such as potential salary adjustments for deserving employees. More importantly, the collaboration between the OSP and CAGD sends a strong message against corruption and mismanagement within the public sector. The exposed vulnerabilities underscore the need for robust oversight mechanisms and stringent data verification processes to ensure efficient and transparent payroll administration.
Source: Graphic Online
