KMA Boss Orders Forensic Audit Of Accounts

…. As He Uncovers More Rot At Assembly

From Sebastian R. Freiku, Kumasi

SADDLED WITH Judgment debts to the tune of GHc6, 427,287.75 and other stock pile of debts amounting to GHc119, 213,333.22 as at 31st December2016, the Kumasi Metropolitan Assembly (KMA) has decided to set up a Special Audit Team to investigate the genesis of the debts.

The mayor of Kumasi,  Osei Assibey Antwi, said in his first Sessional Address at the second ordinary meeting of the second session of the 7th Kumasi Metropolitan Assembly last Thursday that, whilst referring to a summary report of KMA’s Financial Liabilities that the outstanding

debts were accumulated over several years.

Following, the Mayor has indicated that the KMA shall take the necessary steps to unravel the mysteries surrounding such debts.

This debt is said to have been borne out of court cases bordering on the failure of the Assembly to meet its financial obligations to contractors and service providers who had performed their side of the contracts between 1992 and 2012 and abrogation of contracts.

As a result, the Assembly was faced with an imminent slap of a ‘fierifacias’ (fi fa) to attach our physical assets to judgment creditors, whilst an amount of GHc1,235,017.62 had already been garnisheed to pay two of the judgment creditors between January and August 2016.

Details of the debt were mentioned as GHc321,550.59 for Common Fund Contractors and Suppliers, GHc3,599,717.05 for IGF Suppliers, GHc855,564.42 for IGF Contractors, GHc63,833,626.73 for Waste Management Service Providers and GHc50,602,874.43 for Judgment Debt Creditors.

Mayor Osei Assibey Antwi has, therefore, affirmed that: “A Special Audit Team will be set up to investigate how such issues came about in the first place, since “We cannot just sweep such unacceptable incidents under the carpet”.

He added that, the KMA would seek legal opinion, including the option of Alternative Dispute Resolution (ADR) to deal with all the outstanding court cases, as well as be guided by the provisions of the Public Financial Management Act 2016 (Act 921).

The Act seeks to “regulate the financial management of the public sector within a microeconomic and fiscal framework to define responsibilities of persons entrusted with the management and control of public funds, assets, liabilities and resources.

“And also to ensure that public funds are sustainable and consistent with the level of public debt; to provide for accounting and audit of public funds and to provide for related matters.”

The aim is to avoid further financial leakages and thus protect the public purse and ensuring the judicious use of public funds for the good of our Metropolis.

The Mayor of Kumasi expressed worry that within a space of three months, from October to December 2016, KMA’s judgment debt stock rose from GHc6,427,287.75 to GHc50,602,874.43  and it is likely to increase, as other judgments might be given in favour of the plaintiffs in the pending cases.

He said, apart from the Sapso Construction Limited judgment debt over alleged non-payment for the construction of market stores at various locations on Build, Operate and Transfer basis

(BOT), all the other judgment debts arose out of waste management contracts.

 Osei Assibey Antwi was worried that the action and inaction of some Members and other staff of the Assembly have brought the KMA, which development, he noted, serves as a great deterrent to potential investors and must not be allowed to happen again.

Referring to the Rattray Park, touted as the modern recreational park, at an estimated cost of US$4.5 Million, the Mayor indicated that the Assembly’s financial records show that an

overall budgetary allocation for this project for the period, 2013 -2016 was GHc5,278,674.40 and that total payments made in respect of various lots of the project, as at 31st December,

2016, totaled GHc5,068,964.01 or US$1,267,241 using a conservative rate of GHc4 to a dollar, an indication  that about US$3.2million, far less than the US$ 4.5million was declared as the cost of construction.

The Mayor stressed the need for a forensic audit to establish the actual cost of the project in the face of the fact that some of the facilities that would attract more patronage are either not installed or are inadequate to satisfy the demand of the patrons.

He cited the lack of variety of materials and space to accommodate the different age ranges at the Children’s playground and that the equipment at the gym section are not only inadequate but are also exposed to the vagaries of the weather, while installed CCTV cameras are not functioning to monitor what happens at the various sections of the park, in case there is an emergency.

Meanwhile, the Mayor has assured that the KMA would develop a strategy, including a marketing plan that will turn around the fortunes of the park and make it more viable.

Pix: Osei Assibey Antwi – KMA boss

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…. As He Uncovers More Rot At Assembly From Sebastian R. Freiku, Kumasi SADDLED WITH Judgment debts to the tune of GHc6, 427,287.75 and other stock pile of debts amounting to GHc119, 213,333.22 as at 31st December2016, the Kumasi Metropolitan Assembly (KMA) has decided to set up a Special Audit Team to investigate the genesis […]

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