The Auditor-General (A-G) reports that, the Social Security and National Insurance Trust (SSNIT) lost US$11,794,109 to non-performing investments.
The report explains that the loss was from the liquidations of SSNIT’s three investments with a total cash outlay of US$14,768,153.
The A-G, in the light of that huge financial loss, urged the management of SSNIT to investigate the nonperformance of the investments for all with the aim of ensuring value for money and ensuring that officers whose action led to the loss are appropriately sanctioned for the loss.
The report, also said management of the Trust could not retrieve an outstanding loan balance of GHS146,964,641.07 from the Ghana Road Fund as at December 31, 2019, and “this was partly due to the Trust’s inability to put in place strict measures to ensure that Ghana Road Fund issued a Letter of Authority to the Ghana Commercial Bank and Bank of Ghana to pledge and place a lien on the Road Fund Accounts, to recover the monthly instalment in line with paragraph 11.0 of the loan agreement.
“Furthermore, management of the Trust could not provide the supporting documents for GHS140,198,668.12 debt disclosed in the 2019 Trial balance as the Government of Ghana portion of student loan.
“Additionally, the management of the Trust could not collect from the Ministry of Finance, the divestiture proceeds of US$626,522.47 from the Divestiture Implementation Committee (DIC) since 2012. This was the proceeds due the Trust, after the sales of its 13.60 percent equity stake in Subri Industrial Plantation Limited (SIPL) to Plantation Socfinaf of Belgium.
“Despite the requirement of Section 90 of the Public Financial Management Act 2016, the Trust has not received any returns in the form of value appreciation or dividend in its investments in nine listed and six unlisted equities (Companies) with a total paid-up consideration of GHc63,174,927.73 and US$65,892,842.09 respectively,” the A-G report explained.
The compilation of the report spanned one year.
By: Umar Sheriff Musah
