Nzema East Assembly orders forensic audit into GH¢2m Ghana Gas cash

A committee set up by the Nzema East Municipal Assembly in the Western Region to investigate the alleged missing GH?2 million donated by the Ghana National Gas Company has presented its report to the Assembly.

Following the discovery of a complex trail of expenditures, conflicting accounts and unresolved financial claims, the committee, chaired by the Presiding Member (PM) has recommended that a forensic audit be conducted on the disbursement and utilisation of the GH?2 million Ghana Gas donation to further verify and confirm that all individuals, contractors and organisations that received payments were indeed eligible and deserving.

Although the committee’s findings revealed no evidence of wrongdoing or misappropriation, the proposed forensic audit, according to the report, would serve as an additional layer of assurance to validate the accuracy of transactions and the authenticity of beneficiaries.

The audit, the report added, should also help establish a clear link between the payments made, the supporting documents provided and the actual works or services executed.

“This process will reinforce confidence that the funds were utilised for their intended developmental purposes and in line with the Assembly’s financial regulations.”

According to the committee, the recommendation is intended not as a suspicion of malfeasance, but as a proactive transparency measure to strengthen accountability systems, enhance public trust and provide credible confirmation that the Ghana Gas donation was properly managed.

Current MCE Denies Authorising Any Spending

The sitting Municipal Chief Executive (MCE), Herbert Kuah Dickson, appearing before the committee, told members that he had no hand in the disbursement of the GH?2 million donation, explaining that all withdrawals were made before he assumed office.

He noted that upon taking office, he only met “existing financial records, payment vouchers and bank statements” detailing how the money had been spent.

These documents, he said, were prepared under the previous administration and formed the basis of his understanding of the expenditure trail.

A key revelation from his testimony was that part of the funds was used to renovate the official MCE bungalow, works completed while the former MCE was still in office.

He stressed that no further spending had occurred under his tenure, assuring the committee of his commitment to transparency and prudent management, especially as the Assembly expects an additional GH?1 million from Ghana Gas.

Former MCE Confirms Receiving GH?110,000 – But Claims GH?801,656 Still Owed

In sharp contrast, the former MCE, Eric Essien, distanced himself from the original disbursement of the Ghana Gas funds, saying the money hit the Assembly’s account after he had exited office.

However, he admitted receiving GH?110,000 as reimbursement for renovation works on the MCE’s official residence, an amount he claims he personally pre-financed.

According to him, the Municipal Coordinating Director (MCD) initially released GH?50,000 explaining that GH?400,000 had been reserved for a Dialysis Centre project.

The former MCE said this explanation was unacceptable, insisting that he personally funded the Dialysis Centre construction on behalf of the contractor, US Global.

Following persistent follow-ups, he received an additional GH?60,000 bringing the total to GH?110,000.

The former MCE also made a startling disclosure: the Assembly, he alleged, still owes him GH?801,656 for various projects he said he personally funded during his tenure, a figure he claimed excludes several other unfunded initiatives.

He provided what he described as documentary proof, but the committee noted that it could not verify the authenticity of the documents presented.

He also rejected allegations that Ghana Gas funds were used to honour memos he signed, insisting that if that were the case, he should have been the direct beneficiary, since he personally financed most of those activities.

He further denied any link between the GH?2 million and the Banso-Asonti Road Project, stating that the road was fully funded by the Government of Ghana under the District Roads Improvement Programme (DRIP).

The Municipal Coordinating Director

During his appearance before the committee, the Municipal Coordinating Director, who serves as the administrative head and chief spending officer of the Assembly, acknowledged that he authorised the majority of the payments made from the Ghana Gas donation.

He explained that the funds were primarily utilised to cover the Assembly’s administrative and operational expenses.

These included the furnishing of the Assembly’s conference room, the procurement of essential office equipment and the settlement of outstanding financial obligations, which he deemed necessary to clear before the assumption of duty by the new administration.

He further indicated that the Assembly was still expecting the remaining GH?1 million from the Ghana National Gas Company Limited. According to him, the outstanding amount, once received, would be directed towards the implementation of some infrastructure development projects and other related programmes aimed at improving public service delivery within the municipality.

The Coordinating Director emphasised that the disbursement and utilisation of the funds were carried out in accordance with established administrative practices and financial management procedures of the Assembly.

He firmly denied any allegations of misappropriation or diversion of funds for personal benefit, maintaining that all expenditures were made in the interest of the institution.

CONCLUSION

The committee concluded that no portion of the GH?2 million Ghana Gas donation was misappropriated or used for personal benefit. However, it noted that a portion of the funds was misapplied, having been spent largely on administrative activities rather than the developmental projects originally proposed.

The committee therefore recommended stronger internal controls, clearer separation of donor and Internally Generated Fund (IGF) accounts, and strict adherence to donor guidelines to restore confidence and accountability.

It also clarified that allegations of misappropriation circulating in sections of the media are unfounded, stressing that no evidence of embezzlement or personal misuse was found. While the Assembly acted within its administrative discretion, the committee noted that this was done without full alignment to the approved project proposal.

 

 

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