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Auditor-General report: University of Ghana invests GHC 456K with unaccredited financial institution

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The Auditor-General has directed the management of the University of Ghana to redeem an investment it made with Libert Asset.

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The Auditor-General, in its 2020 report, disclosed that the College of Health Sciences and the School of Medicine and Dentistry (SMD) of the University invested a total amount of GH¢456,199.08 in Liberty Asset which, is not a commercial bank and does not meet any minimum capital requirements of Bank of Ghana.

The Auditor-General says that the action by CoH and SMD was contrary to the University’s own Financial Regulations and Governance.

“Policy 1301 of the University Ghana Financial Regulations Governance provides that the Finance and General Purposes Committee is responsible for approving a Treasury Policy Statement setting out a strategy and policies for cash management, investments, and borrowings.

In this regard, the Vice-Chancellor issued a policy instruction referenced UG/VC/01/01 and dated 4 October, 2018
which states, “all Units in the University will now be required to invest with only commercial banks that have met the minimum capital requirements of the Bank of Ghana,” the report mentioned.

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The report also mentioned that “there was no evidence of due diligence report available to continue investment with Liberty Asset in terms of its risk profile.”

“The situation has the tendency to increase the financial risk exposure of the University,” the report warned.

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The Auditor-General has recommended to Management of the University that it strengthens its investment oversight activities on treasury management and ensure strict adherence to the policy instruction on investments

“Furthermore, any investment amount lost by the University may be disallowed and surcharged against the affected officers in accordance with Article 187 of the 1992 Constitution of Ghana and Section 18 of the Audit Service Act 2000, Act 584,” the report added.

University of Ghana management, responding to this said that the GHC 456K investment was “made before the Vice Chancellor’s instruction issued on 4 October 2018. The investment was being rolled over as efforts made to call in the investment were not successful”

The University insisted that due “processes were followed before the investment was made”

“Liberty Asset is currently under receivership and follow-ups are being made. Investment Committee has been reconstituted and has issued guidelines on investments as of February 2020 pending the finalization of the investment policy. This is to ensure that such incidences do not recur,” University authorities added.

Click here for the 2020 Auditor-General’s Report


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