The Social Security and National Insurance Trust (SSNIT) has challenged the Auditor-General to produce signed documentary proof that shows it guaranteed a loan facility for the Intercity State Transport Company (ISTC) from the Agriculture Development Bank (ADB)
According to SSNIT, the only part it played in the acquisition of that facility was the fact that it did not raise any objection.
“There is no document that SSNIT signed to guarantee that loan and the auditors should produce any such evidence if it really exists.”
Director General for SSNIT, Dr. John Ofori Tenkorang, threw the challenge when the entity took its turn at the sittings of the Public Accounts Committee of Parliament on Wednesday, February 1.
Report of the Auditor-General on the accounts of Public Boards, Corporations and other statutory institutions for the period ended 31 December 2020 cited SSNIT for guaranteeing ISTC to take a loan of US$17 million from ADB Bank to procure 100 buses to augment its fleet.
According to the report, the implication of the guarantee is that in the event of ISTC’s default in payment of the loan, SSNIT would be called upon to pay.
The audit indicated that contrary to Section 91 of the Public Financial Management Act,
2016, (Act 921) that requires the Board of Directors of a public corporation governed by this Act to ensure the efficient management of the financial resources of the public corporation including the collection and receipt of sums of money due to that public corporation, the ISTC has also not presented its audited Financial Statements over the years to SSNIT as a majority shareholder while SSNIT has also not received any dividends from ISTC on its 80% majority shareholding investment.
The Trust, it said, also failed to recover various loans and shareholder advances given to ISTC and that as of 31/12/19 ISTC did not make payments on any of the 3 loans it contracted.
The Auditor-General urged management to monitor the performance of the US$17.5 million loan to avoid possible repayment by SSNIT and to take appropriate measures to ensure Pensioners’ funds invested in ISTC yield returns.
In response, however, Dr. Tenkorang noted that when the $17.5 loan facility was being entered into by STC it contacted SSNIT but the Board flatly declined the request as there were outstanding loans that have not been paid and would not have been prudent to extend further loans to the company.