The Public Interest and Accountability Committee (PIAC) has disclosed that the government has utilized petroleum earnings to settle judgment debt for the first time since oil production began.
PIAC stated an amount of GH12.4 million was utilized to cover arrears in multiple sectors, including roads and railways, and called the situation unacceptable.
The Committee determined that, despite the Finance Ministry disbursing the Annual Budget Funding Amount (ABFA) to the District Assemblies Common Fund (DACF), there was no report on the amount's use in a report on petroleum revenue management for the year 2021.
The Roads and Highways Ministry spent GH787,618,706.73 on renovations, rehabilitation, asphaltic overlay, upgrading, and other significant maintenance projects, according to the report.
"While praising the Ministry of Roads and Highways for the numerous road projects in various phases of completion around the nation, the Committee considers it appropriate to highlight the settlement of a judgment debt of GH12,275,426.01 during the period under review."
"PIAC desires to emphasize that payment of the judgment debt is irregular," it added, "and urges on Ministries, Departments, and Agencies using the ABFA to guarantee efficient allocation, responsible usage, and effective monitoring of spending as required by the PRMA."
According to PIAC, the Railway Development Ministry received GH87,612,219.67 for the Ghana-Burkina Faso Railway interconnectivity project, feasibility studies on various railway projects, and railway asset inventory and acquisition, among other things.
Recommendations
The Finance Ministry shall give a breakdown of payments to the District Assemblies Common Fund and submit this to the Committee, according to PIAC.
"In coordination with relevant organizations, the Ministry of Finance shall adopt suitable standards for the use and reporting of the ABFA disbursed to the DACF."
Meanwhile, the Petroleum Commission was praised for canceling four of the current 18 petroleum agreements due to non-performance.
"PIAC asks the Commission to guarantee that International Oil Companies (IOCs) adhere to their minimal labour responsibilities."
"PIAC urges the GNPC to increase its efforts to recover loans from the government and its agencies to guarantee that the Corporation's work program is not jeopardized by non-implementation," according to the report.
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