Omanghana
The Auditor-General of Ghana has uncovered illegal pension payments totaling GH¢7,571,114.77 made to four deceased pensioners between 2017 and 2024, exposing major weaknesses in the country’s pension payroll verification system.
The discovery was made during a comprehensive audit of the payroll records of the Controller and Accountant-General’s Department (CAGD), which revealed that pension accounts belonging to deceased individuals remained active for several years, allowing public funds to continue flowing into unauthorized accounts.
Audit Reveals Failure in Pension Verification
According to the audit findings, pension authorities failed to properly verify the continued eligibility of beneficiaries through regular life certificate checks.
As a result, pension payments continued to be deposited into accounts belonging to individuals who had already died, creating significant financial losses to the state.
The Auditor-General noted that the failure to promptly update pension records and remove deceased beneficiaries from payroll systems created an avenue for prolonged illegal payments.
Millions Paid After Pensioners’ Deaths
The audit identified four cases involving deceased pensioners whose accounts remained active after their deaths.
GH¢4 Million Paid After Death of Pensioner
The largest case involved a pensioner who died on June 22, 2018, but whose pension payments continued until March 2024.
Over the six-year period, the state paid a total of GH¢4,028,198.81 into the inactive account, despite the beneficiary no longer being alive.
Seven-Year Payment Leakage
Another pensioner passed away on December 3, 2017, but the account remained active until April 2024.
During the seven-year period, a total of GH¢1,821,388.94 was paid out improperly.
Additional Illegal Payments
The remaining two deceased pensioners collectively received GH¢1,721,527.02 after their deaths before their payroll records were eventually frozen.
Together, the four cases resulted in a total financial loss of GH¢7,571,114.77.
Recovery Measures Begin
Following the discovery, the Auditor-General has directed authorities to take immediate steps to recover the misappropriated public funds.
The commercial banks holding the affected accounts have been instructed to freeze all transactions linked to the accounts to prevent further withdrawals.
Over GH¢4 Million Already Recovered
Authorities have already recovered a significant portion of the funds.
A total of GH¢4,324,800.75 has been retrieved and transferred into the Auditor-General’s Recoveries Account at the Bank of Ghana.
The remaining balance of GH¢3,246,314.02 is still being pursued.
Officials Face Possible Surcharge
The Controller and Accountant-General’s Department has been given a deadline to recover the outstanding funds from the beneficiaries’ estates or relatives connected to the accounts.
The Auditor-General warned that failure to recover the remaining amount within the specified period could result in responsible officials being personally surcharged.
Officials responsible for validating pension payroll records may therefore be required to personally repay any outstanding funds deemed unrecovered due to administrative negligence.
Calls for Stronger Payroll Controls
The findings have renewed concerns about weaknesses in Ghana’s public payroll management systems and the need for stronger verification mechanisms.
The Auditor-General emphasized the importance of regular audits, improved data-sharing systems, and stricter monitoring processes to prevent deceased persons from remaining on government payrolls and causing further financial losses to the state.
The case highlights the need for stronger accountability measures to protect public resources and ensure that government funds are paid only to legitimate beneficiaries.
Source: Omanghana
