Government-funded revenue collection operation shows massive inefficiency as collectors’ salaries outweigh revenue by over 1,200%
The 2024 Auditor General’s Report has exposed a concerning revenue collection inefficiency at the Bole Assembly, where 13 revenue collectors were paid GH¢73,510.80 in salaries while generating only GH¢5,440.00 in revenue during the fiscal year.
The report reveals that the Assembly’s revenue collection operation resulted in a net loss of GH¢68,070.80, effectively costing the government over GH¢12 for every cedi collected. This represents a collection efficiency rate of just 7.4%, far below acceptable standards for public sector revenue generation.
The audit highlighted particularly troubling individual cases. Jacob Polley, a Higher Revenue Inspector who received the highest gross salary of GH¢38,303.76, managed to collect only GH¢4,440.00 in revenue, creating a deficit of GH¢33,863.76. Similarly, Revenue Inspector Aminata Yakubu, with a gross salary of GH¢35,207.04, collected merely GH¢1,000.00, resulting in a GH¢34,207.04 shortfall.
The remaining 11 collectors, whose individual details were not disclosed in the extract, collectively contributed zero revenue while drawing salaries from the public purse.
The Auditor General’s findings indicate potential violations of Regulation 46 of the Public Financial Management Regulations, 2019 (L.I. 2378), which mandates that the Principal Spending Officers that is the Municipal Coordinating Director and the Municipal Finance Officer ensure that non-tax revenue collection is conducted “efficiently and effectively.”
The report noted that the Assembly relies entirely on central government funding to pay these collectors’ salaries, raising questions about the sustainability and justification of the current revenue collection structure.
The Auditor General has recommended that Assembly management “exercise strong oversight on the activities of the collectors to maximize the efficiency of revenue collections.” However, the scale of the inefficiency suggests more fundamental reforms may be necessary.
The findings raise broader questions about revenue collection practices across Ghana’s local assemblies and the need for comprehensive performance monitoring systems to ensure public resources are utilized effectively.
The Bole Assembly has not yet responded to requests for comment on the audit findings or outlined plans to address the identified deficiencies.
