Audit Report: UCC’s over GHS9 million have been locked up in defunct fund management companies
An Auditor-General reports reveals that UCC has over GHS9 million locked up in defunct First Banc and Gold Coast Fund Management
One of Ghana’s public universities in the Central Region, the University of Cape Coast has a sum of GH¢9,123,532.57 locked up in two defunct fund management companies, First Banc and Gold Coast Fund Management, following the revocation of their licences.
This was revealed in the 2020 Auditor-General’s report on the public accounts of public boards, corporations, and other statutory institutions
Johnson Akuamoah Asiedu, Acting Auditor-General, has blamed the situation on what he describes as poor financial due diligence in the university, a situation which he found to be prevalent in other state institutions. He advised that, if the university fails to immediately take steps to recover the money, it risks losing it.
The Management of the university has since been asked to pursue the recovery of their investments from the receivers of First Banc and Gold Coast Fund Management through the Securities and Exchange Commission (SEC).
Management of UCC has also responded to the Auditor-General during the probe, saying it had written to the receiver of the defunct fund management companies, PricewaterhouseCoopers (PwC) on steps to claim the lock-up investment.
The management also noted that they were awaiting the determination by the court to see the way forward since the fund management companies have gone to court on the revocation of their licences.
It was also observed that 14 projects valued at GH¢78,928,271.14 fully funded from the Internally Generated Fund (IGF) of UCC have been delayed for periods ranging between two and eight years. Of these projects, seven were between the completion’s stages of 87% and 99%.
As such, the Auditor General recommended that the Management of the university should ensure early completion of the projects to save the projects from further deterioration.
Again, the university did not have legal title to five of its properties valued at GH¢8,580,000 belonging to the School of Medical Sciences.
The report reveals that, though the properties were occupied by the School of Medical Sciences and formed part of the university’s assets in the 2019 financial statements, the university did not have legal titles to such properties.
On this matter, the recommendation was that the “management take immediate steps to secure title deeds for the affected properties in order to avoid losses that may arise as a result of disputes.”
In relation to this was the issue of tenancy, where the report has noted that management of the university did provide the tenancy agreement between the UCC and the Ghana Hostels Limited for the occupancy of 5.009 acres of the University’s land.
Therefore, management has been charged to provide any Memorandum of Understanding (MoU) or Rent Agreement between the university and Ghana Hostel Limited for audit review.
By: Stella Annan | myactiveonline.com Twitter @activetvgh
