The Public Accounts Committee (PAC) is concerned about the Ministry of Finance’s decision to pay over US$449,000 (GH¢5.39 million) to rent office space for the Millennium Development Authority (MiDA) at the Accra Financial Centre.
The rental agreement, signed on December 20, 2022, with Agridev Real Estates Limited, comprised 434m² of office space for two and a half years.
However, as of December 2023, only US$180,301.89 (GH¢1.78 million) has been paid, leaving an 11-month arrears from February to December 2024.
PAC members questioned why such a large sum had been committed for a 20-person staff organization that does not generate revenue, arguing that the government might have instead purchased a site for long-term use.
When asked about the arrears, Ministry of Finance officials admitted that the rent was not entirely paid.
They claimed that a portion of the contract’s security deposit had been turned into payment, but they could not provide specifics about how much had been cleared and how much remained due.
The Committee, chaired by Hon. Abena Osei Asare, MP for Atiwa East, voiced dissatisfaction that Finance Ministry officials had not been fully briefed on the problem despite the audit report being in circulation for months.
Deputy Minister of Finance, Thomas Nyarko Ampem, assured the Committee that the contract had been terminated due to its high cost.
“We have taken a firm decision to discontinue the rent arrangement because we agree with the auditors that it is unsustainable. We are working with the Public Works Department to secure cheaper accommodation for MiDA. We will also provide the Committee with detailed arrangements on how the outstanding arrears will be cleared,” he said.
Meanwhile, Davis Ansah Opoku, MP for Mpraeso, has asked the Ministry to establish clear procedures to prohibit MDAs from engaging into similar pricey leasing arrangements.
“This is not the first time we are seeing such cases. Some MDAs continue to rent high-cost facilities even when government-owned offices are available. The Finance Ministry should consider issuing a directive to stop this trend,” he reiterated.
The PAC has instructed the Ministry of Finance to provide it with a detailed analysis of payments made thus far, outstanding arrears, and dates for debt repayment to ensure the issue does not reappear in future audit reports.
Source: newsthemegh.com