KMA uses GH¢240k BRTCash to pay ex-gratia     

The weak financial standing of the Kumasi Metropolitan Assembly (KMA) has compelled management to misappropriate funds from the Bus Rapid Transit (BRT) accounts for the payment of ex-gratia to Sub-Committee members and Assembly members.

The Chronicle has stumbled on evidence that members of the 6th Assembly of the Kumasi Metropolitan Assembly (KMA) have reportedly been paid a total of GH¢240,071.00 in ex-gratia.

The said payment was captured in an audit of the Internally Generated Funds (IGF) accounts of the Kumasi Metropolitan Assembly (KMA) for the period January 1, 2020 to December 31, 2020.

On the year under review, the KMA had two Metro Coordinating Directors in the persons of Samuel Donkor and Kwadwo Akuamoah Boateng; two Finance Officers, namely, Daniel Kofi Kankam (January-June 2020, and David Adjei Abbam (July-December 2020), and two heads of Revenue, namely David Adjei Abbam (July-December 2020) and Eugene Asante-Koranteng (July-December 2020).

According to the report, which identified financial indiscipline and mismanagement under the supervision of various officials, an amount of GH¢240,071.00 was advanced from the Bus Rapid Transit (BRT) funds for the payment of allowances and ex-gratia to Sub-Committee and Assembly members.

The report also indicated that three payment vouchers covering GH¢57,881.07 were not pre-audited before payments were made.

The audit report also detected that the KMA transacted 67 businesses without Value Added Tax (VAT) invoices involving an amount of GH¢556,498.05, an indication that either the businesses were not VAT registered, or evaded charging VAT with the KMA’s connivance.

It was also detected that the total payment of GH¢61,113.20 for building works and vehicle repairs were not supported by works orders and certificates of satisfactory work done.

The Metro Finance Director was unable to provide 11 payment vouchers for GH¢167,346.34 for the inspection of the audit team. He (Finance Officer) also made payment of GH¢13,540.00 without payment vouchers, the report indicated.

The KMA, however, raised GH¢20,952,314.52 (87.30%) from its traditional sources, against a budget of GH¢24,000,000, and that even though it budgeted to spend GH¢35,882,023.01 from its IGF, it ended up with an actual expenditure of GH¢34,729,199.63, resulting in a positive variance of GH¢1,152,823.38.

The auditors attributed the lapses to inadequate internal controls and non-compliance with the financial rules and regulations.

The report further suggested that the Metro Coordinating Director must ensure that the amount of GH¢240,071.00 was refunded into the BRT bank account, because the situation had deprived the BRT off the needed funds for its programmes and operations.

The Regional Auditor, Alhassan Z. Mahama, recommended that the KMA deals with VAT registered entities or persons, as well as strictly adhere to provisions of the Public Financial Management Regulation and Stores Regulations in future.


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