Author: Kwaku GhanaMPs

The Minister of Employment and Labour Relations, Hon. Ignatius Baffour Awuah, is set to meet key stakeholders in the pension industry regarding the refund of outstanding 4% Tier 2 contributions to the Social Security and National Insurance Trust (SSNIT).

The discussion is expected to begin this month. Indeed, the 2022 Auditor-General’s report highlighted SSNIT’s inability to fully retrieve the 4% contributions from the Tier 2 Fund Managers. These fund managers were entrusted with managing the funds on behalf of contributors following the enactment of the National Pension Act, 2008 (Act 766).

This came to light when the Director-General of SSNIT, Dr. John Ofori-Tenkorang, appeared before the Public Accounts Committee (PAC) of Parliament today to answer questions relating to the findings raised by the Auditor-General in its 2022 reports.

With the enactment of the National Pensions Amendment Act, 2014 (Act 883), a total of 105,124 contributors from both public and private sectors had already made contributions to SSNIT. These contributors, whose 4% contributions were managed by private fund managers, are now retired and receiving full pensions from SSNIT.

As of the beginning of 2021, the fund managers owed SSNIT GH¢483,365,156.60. However, only GH¢6,076,705.05 was received by SSNIT in 2021, leaving an amount of GH¢477,288,451.55 yet to be retrieved from the fund managers.

Dr. Ofori-Tenkorang noted that the Trust is making significant progress to retrieve all outstanding funds owed SSNIT.

Appointment of Auditors for subsidiaries

The Auditor-General’s report further indicated that 10 sampled subsidiaries of the Trust appointed their own  auditors to audit their financial statements contrary to Article 187 of the 1992 Constitution and Regulation 204 of the Public Financial Management Regulations, 2019 (L.I. 2378).

In his response, Dr. Ofori-Tenkorang stated that the Trust’s subsidiaries operate as independent limited liability companies in accordance with the Companies Act, 2019 (Act 992) with powers to appoint their auditors.

“Pursuant to the Companies Act, it is the Board of Directors of the company that has the mandate to appoint auditors on behalf of the shareholders. We have communicated this legal opinion in writing to the Auditor-General and we are waiting for a formal response”, he added.

However, the Auditor-General disagreed with the SSNIT DG’s position, prompting the Chairman of the Committee, Mr. James Klutse Avedzi, to intervene accordingly and resolve the matter.

“The Auditor-General audits the public accounts of Ghana and the same Auditor-General audits the accounts of Public Boards, Corporations and other Statutory Institutions. So, per that provision in the Constitution, the Auditor-General audits the accounts of SSNIT”.

“Now, SSNIT owns a company, which is a limited liability company governed by the Companies Act. So directly, the Auditor-General cannot audit that private company. So whatever decision is taken, (by the company) it’s incorporated into SSNIT’s accounts which is audited by the Auditor-General. So, there is no need for the Auditor-General to audit the subsidiaries”, Mr. Klutse Adedzi clarified.

 Overpayment of Advance Mobilisation

Regarding the advance payments of 15% contract sum threshold as stipulated in the Public Financial Management Regulations, 2019 (L.I. 2378), the Deputy Director-General of SSNIT, in charge of Investment and Development, Mr. Kofi Bosompem Osafo-Maafo, noted that the Trust accepts the recommendations.

He added that Management has put in measures to ensure that subsequent payments do not exceed 15% of the contract sum threshold.

The Chairman of the Committee enquired from the auditors if they were satisfied with the response provided by SSNIT and the representatives of the Auditor-General acknowledged that they were satisfied with the response.

Need to increase investible funds to the Treasury Sub-Asset Portfolio

The Auditor-General in its report advised SSNIT’s Management to increase the investment outlay in the Treasury Sub-Asset Portfolio to surge its liquidity reserve to support the Trust.

The Chairman of the Committee, Mr. Klutse Avedzi sought to know whether SSNIT has complied with this recommendations from the Auditor-General.

In his response, the Director-General of SSNIT said “the recommendation is well taken. The only reason we have fallen below threshold happened in years where we have not received adequate contributions. But we are committed to ensuring we have healthy liquid treasury portfolio that will solve the liquidity ratio problem”.

Ghanamps.com

Rt. Hon, Speaker of Parliament, Alban Sumana Kingsford Bagbin, has stated that, the January 2024 Standing Orders of Parliament offers an opportunity to address the evolving needs of Ghana’s dynamic and hybrid parliamentary democracy.

According the Speaker, the processes and procedures in the House is challenged, with time and practice exposing the gaps and deficiencies in the November 2000 Standing Orders.

He further indicated that, the present composition of the House has brought those gaps and deficiencies into sharper focus even though, those deficiencies surfaced as far as the early 2001.

“We must start aligning the conduct of business in the House with the evolving and changing trends and requirements of our Parliament. We need to know how to apply and cope with the January 2024 Standing Orders which has replaced the 2000 Orders. These are some of the reasons we are here today. As we say in Africa, “When the drummers alter their beats, the dancers must adjust their steps” he added.

Speaker made this statement in his opening address at the orientation workshop for Members of Parliament and Procedural Staff on the new Standing Orders in Ho, over the weekend.

He stated that, the attendant composition of the House has brought to the fore several challenges with the old Standing Orders.

 These led to diverse interpretations of some procedures and practices, constant and acerbic verbal one-upmanship on the floor of the House, increased tensions, near fisticuffs, and eventually, including the pronouncement of the Supreme Court regarding the November 2000 Standing Orders.

The current Standing Orders of Parliament which came into effect on the 2nd of January 2024 assures for effective and efficient performance of Parliament and Parliamentarians.

The Speaker indicated that, the Parliament of Ghana’s Standing Orders are deeply rooted in the 1992 Constitution of the Republic of Ghana and drawing on the Darwinian concept of a “living organism.” It is a dynamic document that continues to evolve and therefore, the metaphorical representation of a “living Constitution” is a testament to its capacity to adapt to society’s ever-changing needs, reflecting the evolution of laws, policies and preferences. He borrowed the words of Laurent Fabius, the former Prime Minister of France, “The revision of legal documents may not be without imperfections, but at least it won’t be rigid. It will be a necessary step towards building the institution and country we desire.”

He advised Hon. Members of Parliament, to approach their work with diligence and innovation, given the fact that Parliament is confronted with an increasing level of public distrust, which must be tackled through their approach to work. To him “The 2020 general elections presented incontrovertible evidence of this and alerted us to the potential future shifts and turns in our country’s socio-political landscape”.

The Deputy Majority Leader and MP for Effutu, Hon Alexander Kwamina Afenyo-Markin in his remarks on behalf of the Majority Leader indicated that, the only weapon for an MP is the rules book (Standing Orders) and cited himself as example that, when he entered the chamber in 2013 and found himself fumbling, the only saviour was the rules book.

He therefore, advised his colleagues that, the only way to survive and stand on your feet and make meaningful contributions on the floor of the chamber in the midst of all intimidation is to stand firm and indicate that, you are within the rules.

He was therefore of the opinion that his colleagues should not take the rules for granted. “For the outgoing MPs, do not forget about the rules book as you are likely to come back and for those who would be retained, take the rules seriously”. He advised.

The Minority Chief Whip and MP for Adaklu, Hon. Kwame Governs Agbodza congratulated the Rt. Hon. Speaker for spearheading the revision of the Standing Orders and bringing it into operations. He was of the opinion that, the orientation will address members concerns and bring them up to speed on the new provisions and the rationale behind them. He entreated his colleagues to commit their attention to all the facilitators.

In his welcome remarks, the Clerk to Parliament, Mr. Cyril Kwabena Oteng Nsiah, indicated that, since the commencement of the previous Orders, Parliaments have been confronted with contemporary challenges such as the Covid-19 pandemic; institutionalization of mechanisms to promote the Open Parliament Concept; the hung nature of the Eighth Parliament, which is the first of its kind since the inception of the Fourth Republic, presented a number of novel situations and challenges that were not clearly provided for under the previous Standing Orders.

He mentioned some of the practices and procedures that has been introduced in the new Orders which includes the recital of the National Pledge on the first day of Sitting for each week, the conduct of a roll call of Hon. Members of Parliament, at each sitting of the House, at the behest of the Rt. Hon. Speaker. He added that, Parliamentary Committees have increased from thirty-one (31) to forty-four (44) to emphasise the new focus and direction of the House, as part of efforts to expand and improve parliamentary oversight of activities of state actors.

Ghanamps.com

Parliament’s Committee on Selection is to recompose various Committees in the wake of President Nana Akufo-Addo’s reshuffling of his Minister for the first time under his eight (8) years mandate.

According to the Speaker of Parliament, there is the urgent need for the Committee on Selection to do their work immediately in other to aid the Appointment Committee to do its work.

Rt. Hon Alban Kingsford Sumana Bagbin further noted that the House should take action so that the president’s re-composition of his government can be worked on.

Ghanamps.com

Mr Kennedy Agyapong and Sly Tetteh, lawmakers for Assin Central and Bortianor-Ngleshie Amanfrom, respectively have made peace after they nearly engaged in a brawl in Parliament on Tuesday, February 13, 2024.

Deputy Majority Leader Alexander Afenyo Markin invited the two of them into his office where they settled their differences.

They were seen in a video having a hearty conversation amidst laughter.

Ghanamps.com