President Nana Akufo-Addo
PRESIDENT AKUFO-Addo has finally released details of his government’s expenditure rationalisation measures, reducing spending by almost half of all budget approvals.
In a letter dated April 19, signed by Akosua Frema Osei-Opare, Chief of Staff, the President ordered a 30 per cent cut in the budgets approved by the boards of state-owned enterprises (SOEs).
He also directed state institutions to adhere to the additional directives and guidelines issued by the Minister of State in charge of Public Enterprises and the State Interests and Governance Authority (SIGA) in relation to the policy (which applies to SOEs).
The President further directed that all cabinet memos that require additional funding above the appropriated budget of a covered entity should be accompanied by a written clearance by the Minister for Finance, clearly indicating the source of funds within the appropriation for the requested programme or activity.
Fuel Allocations
He also announced a 50% cut in fuel allocations to all ministries, departments and agencies (MDAs), metropolitan, municipal and district assemblies (MMDAs), and state owned enterprises (SOEs), including political appointees, with effect from April 1, 2022.
“This directive applies to all methods of fuel allocation, including the issuance of fuel coupons, electronic cards, chit systems, and collections from fuel depots,” it added.
Vehicle Purchases
Government, earlier, directed all heads of MDAs, MMDAs, and SOEs to reduce their 2022 budget for the purchase of vehicles by 50 per cent, and ensure strict compliance with the policy to buy locally assembled vehicles, except in special circumstances.
Foreign Travels
A moratorium (suspension) has also been placed on foreign travel by public officers, except those for critical and/or statutory programmes approved by the Chief of Staff.
Meanwhile, a template/checklist has been sent to all MDAs to be filled by all covered entities, as well as questions that will guide the approval of foreign travels.
It also called for the full disclosures on the cost of attending the programme, and whether it has been budgeted for by the MDAs, MMDAs or SOEs.
“If answers to all the above questions are met in the affirmative, then the request, together with relevant documents and evidence, may be submitted to the Chief of Staff for consideration,” it mentioned.
Frema Osei-Opare has since issued a strong warning to all heads of covered entities that subsist on public funds to take note, and ensure strict compliance with the directives issued by cabinet at its first special meeting held on Monday, March 21, 2022.
Ghost Names
Government also urged all heads of MDAs and MMDAs to undertake a headcount of all their staff to validate the existence of persons on the payroll.
It said, “All MDAs have been asked to submit a monthly verification report of staff on payroll to the Director-General of the Internal Audit Agency (IAA) by the 15th day of the ensuing month (with copy to the Controller and Accountant-General).
“All heads of MDAS, MMDAs, and SOEs are equally required to review the existing programmes and projects, and advise the Office of the Chief of Staff and the Minister for Finance on any programmes or projects that are no longer relevant to the achievement of the organisational objectives by May 31, 2022.”
A joint team from the Office of the Chief of Staff and Ministry of Finance have been mandated to validate such responses.
No New Institutions
Furthermore, another moratorium has also been placed on the establishment of new public sector institutions.
All sector ministers and heads of MDAs, MMDAs, and SOES have been directed to ensure that no new institutions are established either locally or abroad until further notice.
“If it is extremely necessary to establish new institutions, the relevant laws as contained in Section 100 of the PFM Act, 2016, Act 921, should be complied with,” it said.
Heads of MDAs, MMDAs, and SOEs have further been asked to ensure that budgetary resources are used to complete ongoing projects, whilst new projects are required to comply with the requirements of the Public Financial Management (Public Investment Management Regulations, 2020,L.I. 2411).
Meeting Expenses
The Chief of Staff has also directed all heads of MDAs, MMDAs, and SOEs to ensure that expenditure on meetings and
conferences are reduced by 50 per cent.
BY Charles Takyi-Boadu