Payment of Penalty for Late SSNIT Contributions – GH¢5,616.40

Contrary to Section 7 of the Public Financial Management Act, 2016 (Act 921), which requires Principal Spending Officers to ensure the regularity and proper use of public funds, the audit revealed that the Berekum East Municipal Assembly incurred a total penalty of GH¢5,616.40 due to delays in remitting SSNIT contributions for casual workers. The penalty arose from two separate instances:
GH¢2,616.40 for delayed contributions from June to December 2022, paid on 5th July 2023.
GH¢3,000.00 for delayed contributions from January to July 2023, paid on 12th October 2023.
The penalties were paid out of the Assembly’s Internally Generated Funds (IGF).

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Berekum East Municipal Assembly

Citation Source
Report Department Category Date
2023 Audit Report Finance Financial Mismanagement 23 Oct. 2024

Citation Impact

Waste of Public Funds: The penalty payments represent avoidable costs that could have been channelled into essential services or development projects.
Poor Payroll Management: Indicates weaknesses in the payroll administration and financial control processes.
Reputational Risk: Repeated delays in statutory payments may damage the Assembly’s credibility with institutions such as SSNIT and other stakeholders.

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