Avoidable Garage Fees Due to Seizure of Official Vehicle – GH¢9,180.00

In contravention of Section 52 of the Public Financial Management Act, 2016 (Act 921), which mandates Principal Spending Officers to ensure proper control systems over assets under their care, the Tatale/Sanguli District Assembly allowed a vehicle to be seized by Japan Motors in Tamale due to nonpayment of an outstanding bill of GH¢85,260.98 for repairs on two vehicles, including a Nissan Hardbody Vehicle (GN 8829-18).
The vehicle was seized and remained in the custody of the repair company, incurring avoidable garage fees of GH¢30.00 per day for each day the vehicle was held. By December 2023, the accumulated garage fee amounted to GH¢9,180.00.

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Tatale

Citation Source
Report Department Category Date
2023 Audit Report Transport/Asset Management Financial Mismanagement 23 Oct. 2024

Citation Impact

Unnecessary Financial Loss: The Assembly incurred avoidable garage fees due to the delay in settling the outstanding repair bill. These charges could have been avoided had the payment been made promptly.
Mismanagement of Assets: The seizure of the vehicle highlights poor management of official assets and inadequate oversight over outstanding liabilities.
Reputational Damage: The Assembly's failure to address its financial obligations led to unnecessary penalties, which can damage its reputation and create a precedent for neglecting payments.
Resource Wastage: The failure to manage payments in a timely manner resulted in avoidable costs that could have been better used for other pressing needs in the Assembly.

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