…..As his PAC scrutiny & A-G’s referral surface
The Ghana Broadcasting Corporation (GBC), under the leadership of Director-General, Prof Amin Alhassan, has plunged into a financial and ethical crisis, following revelations of a staggering loss of eight million, four hundred and forty-eight thousand, five hundred and ninety-seven Ghana cedis (GH¢8,448,597).
This has left many questioning, why the GBC boss, who disclosed that he relied on a verbal discussion with officials at the Public Procurement Authority (PPA) for some of his procurement- in violation of the Public Procurement Act- would have his appointment renewed by the National Media Commission (NMC).
The amount represents an alarming 3,020.5percent increase in losses, compared to a relatively minor deficit of two hundred and seventy thousand, seven hundred and forty-nine Ghana cedis (GH¢270,749) in 2021.
GBC’s total income, also declined by 3.5 per cent to eighty-one million, sixty-one thousand, eight hundred and ninety-four Ghana cedis (GH¢81,061,894) in 2022, down from eighty-four million, forty-four thousand, four hundred and twenty-nine Ghana cedis (GH¢84,044,429) in the previous year.
These figures were disclosed in the Auditor-General’s audit of GBC’s 2022 financial statements, which were subsequently reviewed by Parliament’s Public Accounts Committee (PAC).
The report attributes the losses to unchecked expenditure, procurement breaches, and questionable spending. A significant factor was a sharp drop in internally generated funds, especially from airtime sales, which heavily impacted overall revenue.
On the expenditure front, GBC’s total expenses rose by 6.2 per cent to eighty-nine million, five hundred and ten thousand, four hundred and ninety-one Ghana cedis (GH¢89,510,491) in 2022, from eighty-four million, three hundred and fifteen thousand, one hundred and seventy-eight Ghana cedis (GH¢84,315,178) the previous year.
The increase was mainly due to rising personnel costs, further exacerbating the Corporation’s financial strain.
The audited statements, prepared under Prof Alhassan’s supervision, are crucial in assessing the Corporation’s performance over the past four years.
Non-current assets declined by 1.8 per cent to one hundred and six million, seven hundred and six thousand, three hundred and ninety-six Ghana cedis (GH¢106,706,396), down from one hundred and eight million, seven hundred and nine thousand, and twenty-one Ghana cedis (GH¢108,709,021), primarily due to depreciation.
Current assets also dropped by 3.4 per cent to thirty-one million, eight hundred and thirteen thousand, three hundred and fifty-two Ghana cedis (GH¢31,813,352), reflecting reduced cash and bank balances, critically affecting liquidity.
Meanwhile, current liabilities rose by 7.7 per cent to seventy-four million, seven hundred and nine thousand, and sixty-six Ghana cedis (GH¢74,709,066), mainly due to increased trade creditors. This further weakened GBC’s financial position, with the current ratio deteriorating from 0.5:1 in 2021 to 0.4:1 in 2022—highlighting the Corporation’s struggle to meet short-term obligations.
The Auditor-General’s report, also raised serious concerns over GBC’s procurement practices. According to Section 43 of the Public Procurement Act, 2003 (Act 663), public entities must solicit quotations from multiple suppliers to ensure transparency and competition.
However, GBC management was found to have authorised payments totalling five hundred and thirty-three thousand, nine hundred and twenty Ghana cedis and twenty-seven pesewas (GH¢533,920.27) without the required alternative quotations or Board approval for single-source procurement—an apparent violation of procurement law.
In response, the Auditor-General recommended sanctions under the Procurement Act for those responsible for these breaches. The report underscored the need for stricter adherence to procurement regulations in future operations.
GBC management acknowledged the Auditor-General’s recommendations and pledged to improve compliance and procurement processes.
The audit pinned the Corporation’s mounting losses primarily on surging operational costs—especially a notable increase in personnel expenditures, including salaries and benefits. While revenues stagnated, GBC’s financial haemorrhaging intensified, raising concerns of fiscal mismanagement.
As a result, the PAC has taken the unprecedented step of referring Professor Alhassan to the Attorney General for prosecution over the procurement violations.
This marks a firmer stance on accountability and mismanagement within state institutions.
Adding to the controversy, the report revealed that two hundred thousand Ghana cedis (GH¢200,000) in public funds were spent renovating Professor Alhassan’s official residence.
The revelation, which emerged during his appearance before PAC on 15 August 2024, attracted sharp criticism and has resurfaced following his reappointment by the National Media Commission (NMC). Critics condemned the expenditure as reckless amidst GBC’s financial crisis.
The PAC stressed the gravity of the Auditor-General’s findings, arguing that GBC’s conduct reflects a broader culture of impunity in public sector spending.
“Taxpayer funds cannot be treated as a private purse,” one committee member asserted. The call for prosecution underscores growing demands for accountability amid Ghana’s economic challenges.
This development has reignited debate over governance in state-owned enterprises, with civil society organisations urging reforms to curb wasteful spending and ensure strict adherence to procurement laws. Analysts warn that similar crises may engulf other public institutions without tighter oversight.
The Attorney General’s decision on whether to press charges against Prof Alhassan will be closely monitored, as it could set a new precedent for accountability in the public sector.
Appearing before the Public Accounts Committee (PAC) of Parliament regarding the Auditor-General’s report on GBC, ending December 31, 2022, Prof. Alhassan faced intense questioning over alleged procurement violations totalling GH₵533,920.27, prompting the Committee to recommend his referral to the Attorney General for prosecution.
The session, marked by heated exchanges, centered on GBC’s failure to comply with procurement laws in purchasing goods and services, including air travel, hotel bookings, and a vehicle for the Director-General.
A member of PAC and Member of Parliament (MP) for Tano North in the Ahafo Region, Freda Akosua Prempeh, flagged multiple payments made without competitive bidding and approval for single-source procurement, as mandated by law.
She highlighted a final instalment payment for a vehicle procured for the Director-General in April 2021, demanding clarity on whether proper processes were followed. Prof Alhassan defended the purchase, insisting the vehicle was one of seven acquired through advertised tenders and committee evaluations.
He dismissed the audit report’s reference to a final payment as an error: “We provided full documentation to auditors. The entire procurement process was lawful.”
However, PAC Vice Chairperson, Samuel Atta Mills, challenged the DG’s claims, noting discrepancies in his explanations.
“If procurement was properly done, why is this flagged?” he questioned, emphasizing that auditors had flagged the transaction in a management letter. However, the Director General maintained that GBC had responded to auditors, disputing the issue’s inclusion in the final report.
The hearing took a contentious turn, when Prof. Alhassan cited GBC’s use of a “barter system” for services like airline tickets and hotel accommodations, arguing that such arrangements fall outside procurement laws.
“Procurement law does not cover barter,” he stated, claiming verbal confirmation from the Public Procurement Authority (PPA)”, but Atta Mills rebuffed this, demanding specific legal provisions that the Director General could not immediately provide.
“You’re now changing your story,” Atta Mills retorted, highlighting a video wall procurement allegedly awarded without competition.
Under pressure, Prof. Alhassan admitted some procurements were later regularized post-audit but insisted most barter deals were legitimate.
Dissatisfied with the responses, Atta Mills moved to invoke Section 92 of the Public Procurement Act, which mandates sanctions for breaches.
“We’ll recommend prosecution. Let the courts decide,” he declared, instructing the committee Clerke to forward the case to the Attorney General.
Freda Prempeh further pressed for documented PPA approval of the barter policy, but Prof. Alhassan acknowledged only a verbal discussion with PPA officials and conceded no written evidence existed.
The referral underscores mounting pressure on state agencies to adhere to fiscal accountability amid Ghana’s economic challenges.
The Attorney General’s office is expected to review alleged procurement breaches, including single-source violations and irregular payments, which could carry legal consequences for GBC’s management.
The GBC case highlights persistent tensions between Parliamentary oversight and state entities’ operational practices. The PAC vows to enforce procurement compliance more strictly.
