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CAGD Teams Up with OSP to Investigate and Prosecute Payroll Fraud

The Controller and Accountant General’s Department (CAGD) is partnering with the Office of the Special Prosecutor (OSP) to investigate and prosecute individuals implicated in widespread payroll fraud, following growing concerns over financial mismanagement in the public sector.

The move comes in response to findings in the 2024 Auditor-General’s report, which flagged numerous irregularities in government payroll operations, including unearned salary payments, unauthorized responsibility allowances, and salary overpayments.

Speaking before Parliament’s Public Accounts Committee on Monday, Controller and Accountant General Kwasi Agyei emphasized the need to shift beyond merely recovering funds, advocating for punitive action against offenders.

“We shouldn’t just stop at recovery,” Mr. Agyei told lawmakers. “There’s always relief when money is retrieved, but that shouldn’t be the end of the story. There must be accountability.”

Mr. Agyei explained that audit trails within the government’s Oracle-based payroll system allow for precise identification of those responsible for the disbursement and receipt of irregular payments. He noted that the system captures data such as staff IDs and transaction timestamps, enabling investigators to trace wrongdoing with relative ease.

“We are working in collaboration with security agencies, including the Special Prosecutor,” he said. “Once the audit identifies recipients, we can verify and build a case. With time and due process, those found culpable will face the law.”

The joint initiative marks a more aggressive stance by Ghanaian authorities to address persistent inefficiencies in public payroll administration, which continue to cost the state millions of cedis annually.

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