GH¢442.7m SSNIT funds locked up in non-performing investment – Audit Report

• The report stated SSNIT did not receive any returns from two of the companies for investments made since 2005

• The Auditor-General has called for the strengthening of supervisory controls

The 2020 audit report has revealed that the Social Security and National Insurance Trust (SSNIT) has more than ¢440 million locked up in non-performing investments.

The report stated that the amount is out of ¢1.8 billion of cash irregularities it uncovered.

“Cash irregularities related to the misapplication of funds, nonretirement of imprest, payments not authenticated, payment of Board Allowances to Council Members without Ministerial approval, cash locked up in non-performing investments.

“Out of the total figure of GH¢1,802,692,515 cash irregularities, ¢442,730,876.74 represented cash locked up in non-performing investment by SSNIT,” the report read.

The report continued: “These occurred as a result of poor oversight responsibility and nonexistent controls. Other contributory factors were finance officers’ failure to properly file and keep records, Management’s failure to ensure the security and safety of vital documents, non-maintenance of returned cheque registers, Management’s inertia in complying with procedures stipulated; in the Public Financial Management Act, and poor accounting systems.”

The Auditor-General has called for the strengthening of supervisory controls over public boards, corporations and other institutions’ finance offices so that they can adhere to the provisions of the Public Financial Management Act.

The Social Security and National Insurance Trust, SSNIT, has lost over US$ 11 million due to the liquidation of three companies.

This for the period ended 31 December 2020 found that SSNIT liquidated three companies with a total investment of US$14.7 million.

The audit report revealed that, SSNIT did not receive any returns from two of the companies for investments made since 2005.

“We noted from our review of investment files that, the Trust liquidated three companies with a total investment of US$14,768,153.00. The Trust had not received any returns from the companies for its investment for the past 15 years. The loss from the liquidations amounted to US$11,794,109,” the report said.

Management of SSNIT has been urged by the Auditor-General to “investigate the non-performance of the investments with the aim of ensuring value for money and ensure that effective feasibility studies are carried out before investing.”