• About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • Citi TV
Thursday, May 26, 2022
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Coronavirus
  • Infographics
  • Livestream
  • Videos
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Coronavirus
  • Infographics
  • Livestream
  • Videos
No Result
View All Result
Citinewsroom - Comprehensive News in Ghana
No Result
View All Result

Auditor-General indicts KMA for using Common fund to settle GHS670,000 judgment debt

Delali Adogla-BessabyDelali Adogla-Bessa
August 17, 2021
Reading Time: 2 mins read
ShareShareShareShare

The Kumasi Metropolitan Assembly relied on the District Assembly Common Fund meant for developmental projects to settle judgment debts totalling GHS670,720.78 to four contractors in 2020.

According to an audit report released by the Auditor-General on the use of the District Assembly Common Fund, the payments followed legal action the contractors initiated against the assembly.

“In all the four cases, the Assembly defaulted in payment of contractual obligations which the contractors (Kerecom, Osbon, Sapsco and Saboadu) sought legal action and the court awarded judgment debts in favour of the contractors,” the report said.

The report noted that the assembly had gone foul of section 7 of the PFMA, 2016 (Act 921) which notes that “a Principal Spending Officer of a covered entity shall ensure the regularity and proper use of money appropriated in that covered entity.”

The assembly was unable to honour payment obligations to the contractors by the due dates, and also failed to negotiate for Alternative Dispute Resolution instead of court settlement.

This resulted in the payment of the judgment debts, the report surmised.

“The use of DACF funds to pay judgment debts which were not budgeted for deprived the Assembly of funds to execute projects in the Metropolis,” the Auditor-General’s audit report added.

The Auditor-General’s department thus recommended that the penalty paid for the default should be refunded from the Assembly’s IGF account into the DACF account.

“Management should in future negotiate for arbitration to resolve contractual disputes,” it added.

One other assembly also fell short of section 7 of the PFMA, 2016 (Act 921).

The Birim Central Municipal Assembly used an amount of GHS 234,200.00 from its Common Fund allocation to settle judgment debt.

This occurred because the Assembly unilaterally suspended the construction of a three-storey 18-unit classroom block at Akim Oda Presby School as far back as August 2001.

As such, the contractor, Messrs Petrado Ltd, took the Assembly to court and was awarded the judgment debt.

In this case, the report also noted that the use of DACF funds to pay judgment debts deprived the Assembly of funds to provide amenities for the communities.

ShareTweetSendSend
Previous Post

Audit reports shouldn’t just be a ritual, prosecutions must follow – Ali-Nakyea

Next Post

Kasoa: Teenagers who allegedly killed 11-yr-old boy confess to killing pregnant woman

Related Posts

Police insignia
News

Police probe killing of KMA guard at Kejetia bus terminal

April 11, 2022
News

Use Auditor General’s reports to fight corruption – GPCC to Special Prosecutor

February 9, 2022
Top Stories

Minority warns of dire consequences due to non-disbursement of Common Fund

December 17, 2021
Kumasi Metropolitan Assembly
News

GH¢240,000 BRT money used to pay assembly members’ ex-gratia repaid – KMA

November 9, 2021
Top Stories

Government owes Common Fund over GH¢2 billion – Minority

October 21, 2021
News

KMA Assembly Members ‘overwhelmingly’ confirm Sam Pyne as Mayor despite earlier threats

October 5, 2021
Next Post

Kasoa: Teenagers who allegedly killed 11-yr-old boy confess to killing pregnant woman

TOP STORIES

‘The money is sitting in our account’ – Adutwum on $1.2M World Bank cash

May 26, 2022

Special Prosecutor probes Sir John’s alleged unlawful acquisition of state lands

May 26, 2022

‘I’ll return to serve my people, I’m taking care of my son in US’ – Adwoa Safo

May 26, 2022
Load More
ADVERTISEMENT
Citinewsroom – Comprehensive News in Ghana

CitiNewsroom.com is Ghana's leading news website that delivers high quality innovative, alternative news that challenges the status quo.

Archives

Download App

Download

Download

  • About Us
  • Contact Us
  • Photo Gallery
  • Privacy Policy
  • Terms of Use
  • Citi TV

© 2021 All Rights Reserved Citi Newsroom.

No Result
View All Result
  • Home
  • News
  • Business
  • Sports
  • Showbiz
  • Coronavirus
  • Infographics
  • Livestream
  • Videos

© 2021 All Rights Reserved Citi Newsroom.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT