The Honourable Minister
Ministry of Youth and Sports
Accra
1st June, 2015
Dear Sir,
Re: Request for Information and Update on NYEP/GYEEDA (ref. Article 21(f) of the
Constitution)
We trust this letter finds you well and in very good health.
After careful and extensive study of the Report of the Auditor-General on the Public Accounts of
Ghana, Ministries, Departments and other Agencies (MDAs), for the year ended 31 December 2013
(“Report”) our interest has been drawn to the portion of the Report that focuses on your Ministry,
particularly under Part III, paragraphs 1629-1716, at pages 426-446. This portion of the Report
covers the audit of the erstwhile National Youth Employment Programme/Ghana Youth
Employment & Entrepreneurial Development Agency (NYEP/GYEEDA). Particularly with respect
to its business engagement with certain entities that are set out in the Report, the Auditor-General
makes very serious findings of fact in respect of the operations of NYEP/GYEEDA.
Based on the Report and information that has been available to the public, we, as citizens of Ghana,
write, invoking our RIGHT TO INFORMATION under Article 21(f) of the Constitution, to
respectfully demand from you the following information and documentation:
1.
2.
3.
4.
5.
A copy of the report of any investigation or inquiry that your Ministry has
commissioned into these matters, among others,
Copies of all Memoranda of Understanding or other written agreements, if any, entered
into between NYEP/GYEEDA and the entities that are the subject matter of the
specified portion of the Report,
Details (including amounts and dates) of all public funds paid or given to the said
entities,
Details of any parliamentary approvals obtained above, specifically for the CST funds
given directly to NYEP/GYEEDA by the Government, the budget overrun by
GYEEDA, and the “loans” to the entities listed below, and
Details (including amounts and dates) of all payments made by the said entities to date.
Our request for the above information is informed by our reading of the Report, and three main
causes for concern that we have identified.
1.
Use of Public Funds outside the Consolidated Fund
Our first concern is that, according to the Report, the funds used to establish and run the then
NYEP, were at all times public funds, namely Communications Service Tax revenue received by
the Ghana Revenue Authority and paid directly to the then NYEP, without even having been paid
first into the Consolidated Fund. Sir, you are aware that under Article 176 of the Constitution, all
government revenues and/or monies must be paid into the Consolidated Fund before they are
disbursed. Article 176 provides specifically as follows:
(1)
There shall be paid into the Consolidated Fund, subject to the provisions of
this article,
(a)
all revenues or other monies raised or received for the purposes of, or
on behalf of, the Government; and
(b)
any other monies raised or received in trust for, or on behalf of, the
Government.
(2)
The revenues or other monies referred to in clause (1) of this article shall not
include revenues or other monies,
(a)
that are payable by or under an Act of Parliament into some other
fund established for specific purposes; or
(b)
that may, by or under an Act of Parliament, be retained by the
department of Government that received them for the purposes of
defraying the expenses of that department.
It is obvious that the exceptions provided in clause 2 of the Article did not apply to
NYEP/GYEEDA. That is why we find it surprising that as at the date of the Report, a total of
GH¢136,820,153.15 had been disbursed to NYEP/GYEEDA in a clearly unconstitutional manner.
2.
Unapproved Budget Overrun
Our second concern is that according to the Report, GYEEDA was provided with public funds in
excess of its statutory budgetary provision of GH¢20,000,000 for 2012, to the tune of a colossal
GH¢199,311,753, released through your Ministry’s accounts. Sir, a budget overrun is only
permitted under Article 179(8) of the Constitution if “a supplementary estimate showing the sum of
money required, … [has been] laid before Parliament for its approval.” Absent any such
parliamentary approval, any and every budget overrun is a breach of Article 178(2) the
Constitution, which provides as follows:
No monies shall be withdrawn from any public fund, other than the Consolidated
Fund and the Contingency Fund, unless the issue of those monies has been authorised
by or under the authority of an Act of Parliament.
3.
Suspicious Business Transactions with Selected Organisations
Our third concern has to do with business transactions involving public funds, with certain selected
companies or organisations, namely Asongtaba Cottage Industries Limited, RLG Communications
Limited, Zeeera Group Company, Craftpro Limited, New Vision Consult, Ghana Young Artisans
Movement, Jioogiwu Agriculture Training Centre, Centre for Development Partners, Ghallywood
African Film Village, Goodwill International Group/MDPI, and Seiwa Engineering Works; and it is
to these that we now turn:
I.
Asongtaba
With respect to this company, the Report notes three separate transactions that are of
concern to us:
(i)
under a Memorandum of Understanding dated 12th October 2009 and entered
into between NYEP/GYEEDA and this company, public funds of
GH¢7,185,475 were paid as the contract sum for the training of 10,000 youth
in dressmaking, bead making, drum making and carving. However, according
to the Report, 3,000 youth “were not trained,” so that the company owed an
amount of GH¢1,843,225 out of the total amount of public funds paid to it;
(ii)
under another MOU dated 2nd December 2009, the same company was to
train 17,000 youth in smock making, tie & dye, soap making, carpentry &
(iii)
joinery. Although public funds of GH¢25,620,075.25 were paid to the said
company, the company had done no work as at the date of the Report;1 and
the company was given various “interest-free loans” from public funds,
totalling GH¢42,268,520, supposed to be paid back within 27 to 72 months.
As at the date of the Report, there had been no repayment and, what is worse,
two cheques written to pay a total of GH¢1,795,958.24 of the total
indebtedness had been dishonoured upon presentation (which in itself is an
issue that raises significant legal concern.)
II.
RLG Communications
According to the Report, under an MOU dated 23rd July 2012, this company was to recruit
and train 30,000 youth in phases, in an ICT module, for a total contract sum of
GH¢51,000,000. Having received public funds totalling GH¢4,498,593, the company was
then given additional public funds to the tune of GH¢25,500,000 to train the first half of the
targeted beneficiaries. However, curiously, the initial payments were not taken into account,
and therefore not deducted from the GH¢25,500,000 when it was paid. The effect was that
the company was overpaid to the tune of GH¢4,498,593 as at the date of the Report. The
Report directed that the amount of the overpayment should be refunded, noting that although
the company had admitted this debt and given a written undertaking dated October 2013 to
refund the amount of the overpayment, it had failed or refused to do so, in spite of numerous
reminders.
III.
Zeera Group
With respect to this company, the Report notes three separate transactions that are of
concern to us:
(i)
the company raised a voucher for the payment of GH¢8,549,949 in respect of
work done. However, inexplicably, it was paid public funds of
GH¢11,053,450, leading to an overpayment of GH¢2,503,501;
(ii)
the company was also given public funds totalling GH¢4,931,630.66, for
alleged road maintenance module work, which the Report considered invalid,
a clearly wrongful payment;2 and
(iii) the company also received GH¢986,704.40 of public funds as an advance
payment of a road maintenance module. A balance of GH¢641,358.74
remained outstanding and payable as at the date of the Report.
IV.
Craftpro
By an MOU, this company received public funds of GH¢8,171,308.75 as “interest-free
loan,” out of which GH¢7,958,807.39 remained unpaid as at the date of the Report.
V.
New Vision Consult
This entity also received public funds totalling GH¢642,925 as “interest-free loans,” out of
which GH¢527,925 remained unpaid as at the date of the Report.
VI.
Ghana Young Artisans Movement
This entity owed GYEEDA GH¢75,000 in public funds, which was to be repaid over 6
years. As at the date of the Report, no payment had been made, with the unsubstantiated
claim or explanation that the loan had been converted into working tools for beneficiaries.
1
The Report directed that the total of GH¢27,463,300.25 be refunded immediately plus interest at
the then current Treasury Bill rate of 22% p.a.
2
The Report demanded a refund of these sums with interest at 22% p.a.
VII. Jioogiwu
This entity was given public funds of GH¢73,290 as a “set-up fund” (a clear euphemism for
an unauthorized loan), to be repaid within 3 years. As at 31st August 2013, a balance of
GH¢53,490 remained unpaid.
VIII. Centre for Development Partners
Public funds of GH¢300,000 were given to this entity as an “interest-free loan”, and no
repayment had been made as at the date of the Report.
IX.
Ghallywood African Film Village
This entity received public funds totalling GH¢1,320,000, also described as “set-up funds,”
and no repayment had been made as at the date of the Report.
X.
Goodwill International Group/MDPI
These entities received public fund totalling GH¢15,133,596.05 for consultancy services
and oil & gas training supposed to have been provided. The Report concluded that the
training and consultancy services allegedly provided could not be substantiated as there
were no available documents to support the claims. Similarly, an alleged refund of
GH¢9,194,000 of that amount to the Government, by the World Bank could not be verified.
XI.
Seiwa Engineering Works
This entity received public funds of GH¢278,000 as an advance payment to manufacture,
supply and install 40 sachet water production machines, but had failed to supply them.3 The
Report also recommended that the same entity be surcharged with the cost of 19 polytanks
not supplied under an MOU dated 8th December 2009.
We note with deep concern that at all times material and relevant to these matters, NYEP/GYEEDA
had not even been established under any Act of Parliament and did not have separate existence
under the law from the Government. It therefore remained a part of the Government and at worst an
“alter ego” of the Government. All of its acts were therefore to be the acts of the Government.
It is obvious from the foregoing that the Republic of Ghana is owed by these entities, public funds
to the tune of GH¢107,312,363.35, which remained unpaid as at the date of the Report. What is
worse, the concepts of “interest-free loans” and “set-up funds” out of public funds offend Article
181(1) of the Constitution, which demands that the granting of loans out of any public fund or
account can only be by the Government, and with the approval of a resolution supported by the
votes of a majority of all the members of Parliament. It is therefore obvious that the grant of alleged
loans out of public funds was yet another flagrant breach of the Constitution, unless your Ministry
can produce documentation to the contrary.
Under Article 41(f) of the Constitution, OccupyGhana and its members, as citizens of Ghana, have
a duty “to protect and preserve public property and expose and combat misuse and waste of public
funds and property.” It is obvious to us from the above that there has been a blatant misuse and
waste of public funds, and we consider it our constitutional obligation as citizens to take all lawful
steps to expose and combat this.
We are also aware that your Ministry has commissioned some investigations or inquiry into these
matters, among others, and that you may have in your possession, the report of the investigation or
inquiry.
3
The Report directed the recovery of that amount with interest at 22.8% p.a.
We believe that as citizens, we have an undeniable and inalienable right under Article 21(f) of the
Constitution to information, subject only to the conditions provided or recognised by the
Constitution. We are thus entitled to request and receive all the information and documentation
surrounding the above issues and transactions, including the report of the investigation
commissioned by your Ministry.
Therefore, as a first step to ensuring that these public funds are fully repaid and recovered in a
manner that is fair and equitable to Ghana, we hereby invoke our Article 21(f) right to information,
and demand from you, the following information and documentation:
1.
2.
3.
4.
5.
A copy of the report of the investigation or inquiry commissioned into these matters,
among others,
Copies of all Memoranda of Understanding or other written agreements, if any, entered
into with the above mentioned entities,
Details (including amounts and dates) of all public funds paid to the above entities,
Details of any parliamentary approvals obtained above, specifically for the CST funds
given directly to NYEP/GYEEDA, the budget overrun by GYEEDA, and the “loans”
listed above, and
Details (including amounts and dates) of all payments made by the above entities to
date.
Kindly provide the information and documentation requested herein within 14 days of the date of
this letter, failing which we shall have no other option but to commence legal proceedings against
the Republic, represented by the Attorney-General, in the enforcement of our Constitutional right to
information.
Yours in the service of God and Country
OccupyGhana
cc.
The Attorney-General
Attorney-General’s Department
Accra
The Auditor-General
Accra
The Chief of Staff
Office of the President
Accra
The Speaker
Parliament
Accra
The Majority Leader
Parliament
Accra
The Minority Leader
Parliament
Public Accounts Committee
Parliament
Accra
Public Interest and Accountability Committee
Parliament
Accra