PURC blows Gh¢99k on X’mas hampers
The amount, the audit report held, was spent in violation of the Financial Administration Regulation (FAR).
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The report attributed the development to "the absence of a mechanism in place to ensure that such advances were retired promptly."
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When queried about the decision to spend GH¢99,663 on Christmas hampers, the PURC responded saying: the hamper purchases were undertaken and distributed to beneficiaries during the 2012 Christmas and New Year break. The retirement could only take place in 2013.
The report recommended that Management of PURC should put in place a mechanism to ensure that advances are retired promptly.
--Pro-poor water programmes--
The audit report said there was no Legislative Instrument (L.I.) establishing the pro-poor water programme being undertaken by the PURC.
"It did not not have a separate office nor bank accounts, as such PURC acts on its behalf and charges management fees of 25% of the levies due Pro-Poor Water Programmes," the report noted.
Receipt for the pro-poor water programme went up by 8.7 percent from GH¢4,639, 238 in 2011 to GH¢5,042,326 in 2012, as a result of an increase in inflows from Electricity transmission, the report said.
“Total expenditure also increased by 409.8 per cent from GH¢927,848 in 2011 to GH¢4,730,209 in 2012,” it added.
Acquisition of software and ancillary service
The audit report also focused on a contracted entered into between the PURC and Power Systems Energy Consulting of USA on June 8, 2012 for the supply of software for the Commission’s operations and to provide Ancillary Services.
The details of the contract include: Software cost, 400,000.00; Ancillary pricing services;208,440.00 and 15%Withholding Tax: 107,731.76.
It observed that only 50% of the software cost had been paid leaving 50% outstanding as at the end of 2012.
It also noted that the total cost of the Ancillary Service have been paid and expended accordingly.
"However, the Commission did not withhold taxes amounting to US$107,371.76 on the payments made to Power Systems and Energy Consulting of USA contrary to Section 8 (2) of Internal Revenue Act 2000 (Act 592)," the audit report said.
It advised the commission to be abreast with the tax law and act accordingly.
"We also recommended that management should put in place measures to remit the 50% of the total sum of US$107,371.76 which is due to the tax authority and pay the outstanding amount immediately it falls due," the reported further added.
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