... Audit team tasks him to retrieve ¢122m Accra, Sept. 6 (Chronicle) -- THE AUDIT team that inspected the financial management of the Kumasi Metropolitan Assembly (KMA) has cited Dr. Richard Anane then Member of Parliament for Bantama and currently the Minister for Road Transport as one of the looters of the KMA.
The auditors reported that at the request of Dr. Anane, a total of ¢122 million from the parliamentary Constituent Fund (MPs Common Fund) was lodged with two banks for the purpose of granting credits to micro, medium and small scale entrepreneurs.
The amount was paid in three bits of ¢50 million and ¢ 35 million to the Asafo branch of the Women's World banking and ¢37 million to the Santasi branch of the Atwima Kwanwoma Rural branch between November 2003 and December 2004.
The beneficiary groups included Kwadaso Onyame Tease textiles, Kokode/Atasomanso Palm Kernel Producers. Kwadwaso Onua Do Textiles, Amanfrom Best Friend Textiles and Dichemso and Tanoso Women's Group.
The selection of beneficiaries and approval of loans, according to the audit report “was unilaterally done by Dr. Anane without recourse to the Assembly's Credit Approval Committee” contrary to Part IV, section V of the Revised Guidelines for the Utilization of District Assembly Common Fund.
The said guidelines enjoin Assemblies to establish a Committee of five to examine loan applicants and ascertain that they are citizens of the District Assembly before passing on their applications to the managing bank.
According to the audit report, there was no evidence of any loan recovery agreement between the MP and the groups, which had been misinterpreted by the beneficiary groups to mean that the monies were non-refundable grants.
The auditors have recommended that the Assembly (KMA), in collaboration with Dr. Anane, ensures proper mechanisms for the recovery of the ¢122 million.
They were quick to attribute the situation to the inability of Mr. Maxwell Kofi Jumah, the then Chief Executive Officer to submit half yearly progress reports on the operation of MPs' accounts to MPs in accordance with Part 3, section 8 of the Revised Guidelines for the Utilization of the DACF.
The report, issued in Accra on June 29, 2005 for the attention of the management of the KMA, revealed also that the former CEO of KMA simply did not carry out this requirement between 2002 and 2004.
“The breach of this provision in the guidelines thus rendered the review and monitoring functions of the MPs ineffective” the 39-page draft audit report stated.