It has been established that an amount totalling GH¢7,472,504.22 in the name of Provident and Rent Funds invested since 2015 with GN bank by the Cocoa Research Institute of Ghana (CRIG) has been locked up due to the liquidation of the bank.
This was revealed in the 2020 report of the Auditor General on the Public Accounts of Ghana – Public Boards, Corporations, and Other Statutory Institutions.
According to the report, ‘’Our review of the Institute’s investment portfolio file disclosed that an amount totalling GH¢7,472,504.22 in the name of Provident and Rent Funds invested since 2015 with GN bank have been locked up due to the liquidation of the bank’’.
It noted that the Institute could lose the amount involved if stringent measures are not taken to recover the same.
Also, the report recommended that the Director, Dr I. Y Opoku and Accounts Manager Mr Samuel Anim Sarfo should liaise with the official liquidator to enable them to recover the investment, failure of which the matter should be referred to the legal directorate of the Board for redress.
The report stated that the Management responded that, they have filed documents for claim from the Receiver and expecting to recover the locked-up funds.
*Abandoned Projects*
‘’We noted during project inspection that ten residential accommodations made up of eight (8) senior and two (2) junior staff houses project have been abandoned by Ghana Cocoa Board since 2011’’ the report quoted.
It stated that ‘Our quest to know the reason for abandonment from the Principal Works Superintendent disclosed that, the project was awarded at Ghana Cocoa Board Head office and a copy of the bill of quantity was not made available to them to determine the contractor’s name, contract sum, approved works to be carried out, and whether the contract sum has been fully paid for or not’’.
‘’The award of contract, mode of payment, project inspection and supervision is done by Cocoa House instead of the Institute, hence they could not determine the percentage of completion and whether the abandoned projects are fully paid for’’.
It added that’’ the current situation could lead to higher future completion cost and loss of revenue to the Institute.
Also, staff has been denied official accommodation. We urged Management to liaise with Head Office to get the team all the documents covering the contracts for our scrutiny’’.
The report indicated that the Management said two out of the eight residential staff quarters namely B17 and B25 have been awarded on contract by COCOBOD and works are ongoing, adding that the remaining six residential staff quarters are currently at the tendering stage’’.
A defect on a COCOBOD Renovated Building
‘’We noted that bungalow No. 13 located at the manager’s residential area ‘B’ renovated by Ghana Cocoa Board and handed over to the Institute had various defects such as faulty doors, leakage in the sewage system, unpainted areas, improper fixing of doors, lack of kitchen cabinet, etc’’ the AG Report stated.
It continues that ‘’our interactions with the Principal Works Superintendent disclosed that the project was awarded at Ghana Cocoa Board Head office to Messer K.Againai Company Ltd. The supervising officer at the works department said that the contractor did not corporate with them when he was informed of the various defects. The situation could lead to payment for shoddy works done’’.
The Management was urged to recall the contractor to the site to rectify- the defects and also the retention amount should not be paid to the contractor until the defects are rectified.
The Management responded that the renovation of bungalow No.13 is currently within the defect liability period and the contractor has been recalled to the site to remedy the defect, also the retention amount will not be released until after the defects have been remedied by the contractor.
BY Daniel Bampoe