Rot at GIISDEC: Internal Auditor, Finance Director on police enquiry bail over massive 'chop chop'

The Deputy CEO in charge of Operations at the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), Kwame Addo Asirifi, has confirmed the petition by some staff regarding salary discrepancies at GIISDEC.

He revealed this to a reporter in a telephone conversation on Thursday, April 4, 2024, stating that he reported the anomalies regarding salary discrepancies to the Criminal Investigation Department of the Ghana Police Service this year.

"I am aware of the concerns raised by the staff. I have personally reported the matter to the CID of the Police Service, and the Internal Auditor (Francis Bekoe) and the Finance Director (Prince Ofoso Baakoh) were arrested and are on Police enquiry bail because it's criminal," he revealed.

Background Information reaching this reporter indicates that the Ghana Integrated Iron and Steel Development Corporation (GIISDEC) has been embroiled in the mismanagement of public funds, with accusing fingers being pointed at top management.

Documents available reveal that increases in employees’ salary failed to reflect in the salaries of beneficiaries. The difference in the increment, running into several million Ghanaian cedis, cannot be accounted for.

In the documents intercepted, GIISDEC, at its inception, sought the assistance of the Fair Wages and Salaries Commission (FWSC) to develop a compensation plan, a salary structure which was benchmarked with the Ghana Integrated Aluminum Development Corporation.

However, a letter dated December 7, 2020, regarding the compensation structure issued by the Ministry of Finance (MoF) for staff Conditions of Service, annulled the earlier arrangement with FWSC. As a result, staff were subsequently placed on Step 1 of the Ministry of Finance compensation structure with the instruction not to vary the same for two years. Financial Clearance was then given to 48 staff, including all the government executive appointees, with a total monthly compensation package of GHC 528,816, which remained the same from September 2020 to December 2021.

Further checks of the document show that in 2022, workers detected that staff compensation had risen to GHC 681,204, an average increase of 28.82%, but staff salaries remained unchanged.

Investigations into the matter revealed that the Director of Finance used Step 3 of the MoF Salary Structure throughout the 2022 fiscal year for staff compensation package, a situation which compelled the workers to ask questions.

When the salary discrepancies were brought to the attention of management, the Director of Finance, Prince Ofosu Baakoh, on behalf of Chief Executive Officer (CEO), Kwabena Bonsu Fordwor, and the Deputy Chief Executive Officer, Finance and Administration, Nicholas Andoh, acknowledged the discrepancies but was quick to explain that it was an arrangement to cater to some twenty (20) contract staff who do not have Financial Clearance, as well as other payments for goods and services.

This explanation did not go down well with the staff as they felt disrespected and cheated. According to the staff, in the books of the Ministry of Finance, they (workers) have been migrated from Step 1 salary structure to Step 3, but in actual fact, they are being paid by the management of GIISDEC using Step 1.

The document further revealed that the difference in compensation that was not added to the qualified staff in 2022 alone was a staggering GHC 1.832 million. The said documents that Metrotvonline has also confirmed indicate that the exact amount of money was allegedly captured in the Internal Audit Agency (IAA) preliminary audit report.

What is more disturbing is that in 2023, the Step 3 salary structure had an upward adjustment by 15% for compensation requests which was granted and approved by MoF. Meanwhile, workers were still paid using Step 1, denying them what was rightfully theirs.

Some concerned employees who felt let down began to speak, and it has been confirmed that the total monthly compensation throughout the year 2023 stood at GHC 791,414, a reflection of a 49.66% increment between 2020 and 2023; however, staff salaries remained the same over the period in question. Compensation analysis computed for the year 2023 established that a staggering amount of GHC 1.45 million had not been distributed to staff, with the same excuse given by management.

These matters compelled GIISDEC staff to report the issue to the Criminal Investigation Department (CID), which led to the arrest of the Director of Finance, Prince Ofosu Baakoh, and Internal Auditor, Francis Bekoe, by the Financial Forensic Unit of the Police CID.

This portal also chanced upon a letter dated March 14, 2024, in which a staff of GIISDEC directed his solicitors to petition the Board, drawing their attention to illegal deductions amounting to over GHC 400,000 from his salary, and asked that the same be paid back to him. But this petition appears to have fallen on deaf ears, signaling a legal battle and potential judgment debt.

Again, another disappointed and unsatisfied staff told this reporter of a letter he presented to the Office of the Special Prosecutor to investigate what he called “fraudulent dealings” of some top members of the company.

Amidst this turmoil, it has come to light that the corporation has been operating without proper oversight, with no board meetings held for three consecutive quarters, leaving GIISDEC in an “auto-flying mode.” The last time the board met was in the second quarter of 2023, inside sources told this reporter.

As the situation unfolds, calls for accountability and transparency have intensified. These concerned staff of GIISDEC are directing the Chief Executive Officer to rectify outstanding payments and implement a fair compensation structure based on MoF guidelines.

All attempts to reach the CEO, Kwabena Bonsu Fordwor, to seek clarity on the matter have proved futile.