Probe auditors of defunct UT, Capital banks—Auditor General

The Auditor-General, Daniel Yaw Domelevo, has called for the prosecution of all auditors found culpable in the recent collapse of local banks in the country.

Stakeholders within the banking sector have been calling for the internal and external auditors of collapsed UT and Capital Banks, as well as, the auditors of struggling uniBank to be held partly responsible for the collapse or difficulties encountered by the banks.

Speaking to Citi Business News, Mr. Domelevo said it was important that systems are put in place to prevent unscrupulous management members and internal auditors from causing the collapse of private and public institutions.

“If the internal auditors knew about the control challenges or the operational difficulties which the institution was going through and they did not bring it to the fore, they are culpable. They should therefore be punished together with other officers who are culpable.”

Mr. Domelovo also called on internal auditors to be proactive by engaging the senior management of institutions with issues when they arise.

Remunerations for auditors

On the subject of remunerations, the Auditor General called on stakeholders to make sure that a proper remuneration system is implemented to further motivate the auditors.

He however called on the auditors to focus on being professional.

Meanwhile Mr. Domelevo, also called for the appointment of all internal auditors of public institutions to be done by the Internal Audit Agency.

This, according to the Auditor-General, will give internal auditors the freedom to carry out their duties without fear or favour of their institutional heads.

Mr. Domelovo explained that the current system which allows public institutions to employ their own internal auditors, makes it easy for heads of such institutions to engage in corrupt activities.

Mr. Domelevo stated that it was important to protect the independence of internal auditors to ensure they protect the public purse.

“All I’m trying to say is it is good to have the internal auditor independent from the principal spending officer or chief director. This is so that when they have observations which affect the chief directors themselves the chief directors do not go to town against them with threats of transfers and demotions.”

He added that by taking away the appointment of internal auditors from the institutions they work for, internal auditors become emboldened.

“If we take the internal auditors away like the external auditors, then the chief directors can’t threaten them with transfers and demotions, making the auditors free.”

That Auditor-General, Daniel Yaw Domelovo was speaking on the sidelines of the 2018 Annual Internal Audit and Governance Conference. The conference which is on the theme “Impact of Leadership on Institutional Governance”, is being used to highlight the importance of Internal Auditors to the success of organizations.

About IIA Ghana

IIA Ghana is a professional association dedicated to the promotion and development of the practice of internal auditing in Ghana. It is a full-fledged member institute (#265) of the Global Internal Audit family. IIA Ghana was formally registered in April 2001 in Ghana under the Professional Bodies Registration Decree, 1973 (NRCD 143).

As a knowledge-sharing platform, IIA Ghana has maintained very close links and collaboration with the Internal Audit Agency of Ghana to ensure the active  and mandatory development and practice of internal audit as a key function in the Public Service of Ghana. IIA Ghana provided representatives on many Audit Report Implementation Committees in Ghana’s Public Service.

IIA Ghana is governed by an elected nine-member council supported by the immediate Past-President of the Institute who is an ex-officio member. A number of working Committees, chaired by Council Members, have been instituted to support the governance of the Institute.

By: Bobbie Osei/citibusinessnews.com/Ghana

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