Tag: Alhaji Mumuni Bawumia


Greed and corruption as corporate bodies and top executives in Ghana siphon off state funds

During the Atta Mills-Mahama led administration, there was massive back-log in non-payment of salaries of workers in Ghana. More than ten thousand nurses and teachers remained unpaid for more than two years. Doctors and pharmacists were also victims of non-payment of salaries. Many more workers are weeping for similar reasons. There is a problem of non-payments of monies meant for national health insurance scheme (NHIS) drug providers and also service providers and food suppliers for school feeding programme for so many years. Yet huge salaries paid to top executives each month get to their accounts without fail.

Indeed under the previous NDC government, a lot of financial wastage occurred in the system. Millions of Ghana cedis spilled like leaked oil and no action was taken by Mahama’s administration to retrieve these monies squandered by individuals and companies.

Former CEO of Cocobod Dr Opuni

Mahama’s government voted GHc1.8 billion to Cocobod to purchase 800 tons of cocoa beans. Dr Opuni, who was then the Chief Executive Officer, bought only 300 tons. He was never queried about what happened to the rest of the money until the NPP came to power. He was immediately relieved of his appointment and corruption charges were preferred against him. His dismissal led to a startling revelation of amazing salaries received by certain CEOs in Ghana. Some of these are more than three or four times the salary received by the President.

The CEO of Cocobod, Dr Opuni takes home a whopping amount of GHc77,000 which is 770 million old cedis monthly! This does not include allowances, free fuel supply and free accommodation. The CEO of Bank of Ghana earns GHc89,000 every month, allowances and other benefits excluded. Let us see the monthly salaries of other CEOs in other corporate organisations: the CEO of Ghana Revenue Authority takes home a cool GHc85,000 each month plus allowances and other benefits. The Boss of SSNIT is paid each month GHc76,000, while the Director and CEO of Agricultural Development Bank (ADB) pockets GHc85,000 as his monthly salary excluding allowance and other benefits. The boss of National Investment Bank (NIB), takes home GHc65,000 and the CEO of BOST receives GHc62,000. The list continues with the boss of Tema Oil Refinery (TOR) also receiving GHc52000. The CEO of Ghana Commercial Bank (GCB) is paid “only” GHc55000. The list is just endless. These above-mentioned CEOs have top security men in their homes who are either policemen or staff from top security companies. They have three or four cars at their disposal. They have cooks, drivers, gardeners and cleaners. This group of people are paid by the companies. I believe you all agree with me that with such huge salaries allotted to top executives, it is not surprising that the government was unable to pay certain groups of workers like doctors, nurses, teachers and others who have not been paid for more than two years.

Ghana National Petroleum Corporation (GNPC) is a licensed distributor of petroleum related activities in Ghana. It is an agency responsible for the importation of crude oil and petroleum. When the GNPC was established to replace the Ministry of fuel and power, it was the objective of the government of Ghana to supply reliable and adequate supply of petroleum in Ghana and the discovery and exploration of crude oil in its territories. GNPC grew steadily in the area of oil production. However, after five years of the corporation’s existence, there was vast misuse of Ghana’s oil revenue on a large scale. There was complete absence of transparency and accountability in awarding oil blocks among others and denying Ghanaians the full use of the oil resource. A big chunk of the money accruing lands in the pockets of top executives. The top executives turned GNPC into a den of robbers, grabbing whatever money that came handy. Consequently, the chief executive of the corporation was arrested and tried at the fast track court on three counts of wilfully causing financial loss to the state to the tune of GH¢230,000 which he, on behalf of PNDC guaranteed a loan for Valley Farms a private company, and one count of misapplying public funds. He is said to have misappropriated GHc2million of GNPC funds to buy shares in Valley Farms. He was found guilty on all counts and sentenced to five years in prison.

Greed and corruption by the board of trustees at the Social Security and National Insurance Trust (SSNIT) have put the future of both formal and informal workers in jeopardy. According to the Association of Accountable Governance (AFAG), they foresee a bleak and miserable pension benefit for retirees. This is because the current board of trustees of SSNIT have sold and are aggressively selling off what is left of their investments. Where a chunk of the money will go is anybody’s guess.

Not long ago, workers shares in First Atlantic and Merchant banks were sold. The Trust hospital was sold and SSNIT Guest house was also put for sale. It is a known fact that National Trust Holding Company (NTHC) is a company that has been blacklisted by 2007 auditor’s report as unfit to manage public funds. It is, however, very unfortunate and disheartening that SSNIT has sold the scheme of the informal sector to NTHC, a blacklisted company. AFAG organized the workers in a mammoth meeting to protest against the board at SSNIT who are selfish and self-seeking at the expense of workers livelihood.

Indeed greed and corruption among top executives and corporate bodies have condoned corruption for a very long time. Ghanaians are waiting to see if greed and corruption will persist under Nana Addo‘s government or be relegated to history. Bribery, over-invoicing, gargantuan salaries and sole-sourcing are difficult problems hanging on the heads of Ghanaian governments like the sword of Damocles. Those guilty of such greed and corruption includes DVLA, the Police and customs and passport office. Very often, monies paid at these places are not backed by receipts. This means such monies land in the pockets of the personnel. A survey conducted by Ghana Integrity and anti-corruption consortium confirmed the afore-mentioned bodies as worst off when it comes to bribery and corruption. DVLA and the passport office deliberately delay the issue of driver’s licenses and passports. They have created around the offices those they call, ”goro boys.” These boys are working for the top officials. A driver’s license that will take you three months or more to get is obtained for you within a day or two by a ”goro boy” at five times the normal cost. Guess who gets all these monies. The top officials, of course.

Will the surprise visit by Alhaji Mumuni Bawumia to the passport office help to reduce corruption? Is Nana Addo eager and fully prepared to fight greed and corruption? Is he willing to prosecute the corrupt officials of the past government? Nana Addo’s government is just three months old and I believe all he can achieve or do to get all stolen monies into state coffers lies within the womb of time.

By Stephen Atta Owusu
Author: Dark Faces at Crossroads