SSNIT made a loss of US$11,794,109 from the liquidations of three of its investments The Social Security and National Insurance Trust (SSNIT), according to the Auditor-General’s report on the public accounts of Ghana, public boards, corporations and other statutory institutions for the period ended 31 December 2020, made a total loss of US$11,794,109 from the liquidations of three of its investments with a total cash outlay of US$14,768,153.00.
The A-G has urged the management of SSNIT to investigate the nonperformance of the investments to ensure value for money and ensure that officers whose actions led to the loss are appropriately sanctioned.
Also, management of the Trust could not retrieve an outstanding loan balance of GH¢146,964,641.07 from the Ghana Road Fund as of 31 December 2019.
This, according to the audit report, was partly due to the Trust’s inability to put in place strict measures to ensure that the Ghana Road Fund issue a Letter of Authority to the Ghana Commercial Bank and the Bank of Ghana, to pledge and place a lien on the Road Fund Accounts to recover the monthly instalment in line with paragraph 11.0 of the loan agreement.
Furthermore, management of the Trust could not provide the supporting documents for GH¢140,198,668.12 debt disclosed in the 2019 Trial balance as the Government of Ghana’s portion of student loan.
Additionally, the Management of the Trust could not collect from the Ministry of Finance the divestiture proceeds of US$626,522.47 from the Divestiture Implementation Committee (DIC) since 2012.
This was the proceeds due the Trust after the sale of its 13.60% equity stake in Subri Industrial Plantation Limited (SIPL) to Plantation Socfinaf of Belgium.
Despite the requirement of Section 90 of the Public Financial Management Act 2016, the Trust has not received any returns in the form of value appreciation or dividend in its investments in nine listed and six unlisted equities (Companies) with a total paid-up consideration of GH¢63,174,927.73 and US$65,892,842.09 respectively.
The A-G has, thus, urged the management to take an effective decision on the companies to avoid further loss and investigate the nonperforming investments of the 15 Companies and ensure value for money is achieved.
Contrary to Section 1 of the Value Added Tax Act, 2013 (Act 870), the audit report disclosed that CCL Property Management Limited, which is 100% owned by SSNIT, could not pay the outstanding tax liability of GH¢5,371,230.00 due to its failure to charge respective VAT on its services. "We recommended to […]
