UG debunks claim of overstating employee compensation by GH¢59m

The University of Ghana (UG) has rejected claims of irregularities in a recent payroll audit report by the Auditor-General.

The report stated that the university oversaw GH¢59.2 million in inflated salary payments.

Prof. Samuel Simpson, UG's Acting Deputy Internal Auditor, spoke on behalf of management. He called the claims misleading and lacking context.

He explained to Myjoyonline that "the numbers alone don't tell the full story."

According to him, there are processes behind these figures that the report overlooks. He argued that suggesting the university overstated employee compensation is incorrect.

UG asserts that what auditors labeled as "overstatements" were legitimate uses of internally generated funds (IGF). These funds supplemented government payroll allocations.

Prof. Simpson provided an example for clarity. If the government pays for two staff members but UG needs five, they can use IGF for three additional staff.

He questioned whether this should be considered savings or transparency. He emphasized that it is not fraud to use IGF for necessary staffing.

Prof. Simpson assured that all expenditures are properly documented by the university.

He noted many aspects missing from the auditor’s report, including processes and engagements involved. He firmly stated there was no payroll fraud as alleged in the release.

UG management plans to issue an official statement soon regarding their position.

Meanwhile, the Auditor-General's report addresses broader financial recoveries from 2020 to 2023 recommendations. This includes disallowances and payroll savings up to December 31, 2024.

Overall, GH¢38.9 billion was flagged for recovery by the Auditor-General, but only GH¢12.7 billion has been retrieved so far—about 32.6%.