HomeNews'Was the Auditor-General clueless?' – Kennedy Nyarko Osei questions CAGD's defence of...

‘Was the Auditor-General clueless?’ – Kennedy Nyarko Osei questions CAGD’s defence of report on GH¢11bn Accra-Kumasi Expressway Fund

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The Ranking Member of Parliament’s Select Committee on Roads and Transport and Member of Parliament for Akyem Swedru, Kennedy Nyarko Osei, has questioned the Controller and Accountant-General’s Department (CAGD) over its explanation regarding the GH¢11 billion earmarked for the proposed Accra-Kumasi Expressway project.

His reaction follows a statement issued by the CAGD in response to concerns surrounding the accounting treatment of the funds after issues were raised based on the Auditor-General’s report.

The CAGD maintained that the funds have not been spent but remain lodged in a dedicated Bank of Ghana account in line with approved accounting procedures.

According to the Department, the Accra-Kumasi Expressway is one of the government’s flagship infrastructure projects.

To facilitate its implementation and avoid the funding challenges that have plagued major infrastructure projects in the past, the government established the Accra-Kumasi Expressway Limited as a Special Purpose Vehicle (SPV) through the Ghana Infrastructure Investment Fund (GIIF).

The Department explained that the company is classified as a State-Owned Enterprise (SOE) for funding and accounting purposes.

It noted that after Parliament approved the concession agreement, proceeds from the Annual Budget Funding Amount (ABFA) and mineral royalties were earmarked in the 2025 Budget to finance the project.

According to the CAGD, the approved funds were subsequently transferred from the Consolidated Fund into a dedicated Bank of Ghana account, adding that while the transfer is reflected in the Central Government’s accounts, no payments have been made to contractors and no construction works have been financed from the money.

“The funds have not been paid to any contractor or spent on construction works. They remain in the dedicated Bank of Ghana account pending project execution,” the Department stated.

It further clarified that the ongoing right-of-way clearing being undertaken by the Ghana Armed Forces is a separate preparatory exercise and is not being financed from the earmarked project funds.

However, Mr. Nyarko Osei said the CAGD’s response raises even more questions instead of providing clarity.

He has questioned whether the Department was suggesting that the Auditor-General was unaware of the status of the funds.

“Is the CAGD saying that the Auditor General was clueless about this funds? This response even raises more concerns about the whole issue,” he stated.

The Akyem Swedru MP also questioned why the CAGD had taken it upon itself to respond to issues arising from audited accounts already submitted to Parliament by the Auditor-General.

“Since when did it become the responsibility of the CAGD to respond to audited accounts which have been submitted by the Auditor General to Parliament?” he asked.

Mr. Nyarko Osei argued that rather than disputing the Auditor-General’s findings, the Controller and Accountant-General’s Department should provide detailed information on the movement and current status of the funds.

“The CAGD should rather give details of when these monies were transferred to the said account at the Bank of Ghana and how much of these monies have been expended so far,” he said.

He further called on the Minister for Finance, Dr. Cassiel Ato Forson to make public the full details relating to the GH¢11 billion, including how the funds have been managed.

“I expect the Finance Minister to publish the full details of this GH¢11 billion and how it has been expended,” he demanded.

Mr. Nyarko Osei also challenged the Department’s interpretation of the Auditor-General’s report, questioning whether it was suggesting that the Auditor-General could not distinguish between government allocations and actual expenditure.

“Is the CAGD saying that the Auditor General doesn’t know the difference between expenditure and allocations? Since when did an expenditure line item captured in the Auditor General’s report become the same as Government allocations?” he queried.

The exchange adds a new dimension to the debate over the accounting treatment of funds set aside for the Accra-Kumasi Expressway project, with calls for greater transparency over the management of the earmarked resources.

By 1960news.com

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