The Controller and Accountant General, Kwasi Kwaning-Bosompem, has announced that effective March 2024, all public sector employees must obtain a National Identification Card (Ghana Card) or risk not receiving their salaries.
This directive follows the public sector payroll system’s strategic synchronisation with the National Identification Authority’s (NIA) database. The integration is to sanitise the payroll, ensure its purity and ultimately eradicate the presence of ghost names through real-time validation and verification of personnel.
The anticipated outcome is a reduction in financial losses attributed to disbursements for unauthorised individuals or fictitious entities on the payroll.
The move signifies a concerted effort to streamline public finances and foster fiscal responsibility within the country.
He said: “The menace of unapproved names has long been a matter of concern and a threat to our national development. These unapproved names, popularly called ‘ghost names’, not only drain our limited resources but also undermine the trust and confidence that citizens have in payroll governance. It is our responsibility as custodians of public funds to ensure that every penny is spent wisely and reaches those for whom it is intended”.
To this end, Mr. Kwaning-Bosompem noted that the linkage – connecting our payroll system directly to the NIA database – marks a significant step toward tackling the issue head-on. He expressed confidence that the move will establish an unbreakable bond between an individual’s identity and their presence on the payroll.
By implementing this linkage, he said, the Controller and Accountant-General’s Department (CAGD) will be able to identify and eliminate discrepancies and irregularities; guaranteeing that authentic employees receive their rightful compensation.
“Furthermore,” he said, “it will eliminate the problem of ‘ghost names’, allowing us to redirect funds to crucial sectors of the economy.”
Additionally, it will enhance the payroll system’s efficiency, reducing the administrative burden and eliminating any need for manual verification – thereby promoting transparency and accountability, while instilling confidence in citizens that their taxes are being utilised effectively.
Mr. Kwaning-Bosompem was speaking at the initiative’s launch, and urged all stakeholders to support efforts aimed at sanitising the public sector payroll. He also encouraged all government employees on the payroll to register and obtain their national identification card.
“The linkage between the national payroll and NIA database has not come to replace existing payroll controls and protocols. It is just there to enhance all these controls and make it possible for us to have a credible database that is being used by the government of Ghana. This is to ensure that only legitimate persons working in their units are on their payroll vouchers. We must be reminded of the offences and penalties as stipulated in Section 96 of the PFM Act,” he stated.
Vice President Dr. Mahamudu Bawumia, also speaking at the event said: “The reason this is very important is that for the longest time government has faced a problem of ‘ghost workers’ on its payroll”.
This practice, he noted, is pervasive and very costly to the state, leading to the introduction of bureaucratic procedures to address payroll fraud.
“As part of the controls embedded in government’s mechanised payroll system, new entrants are required to undergo a biometric verification process to activate their information on the national payroll system and facilitate the monthly payment of salaries,” he stated.
The Vice President reiterated that there are several functions of the NIA card. He also added that the linkage’s objective is to make it mandatory for the Ghana Card to be used as a means of validation for newly recruited employees; and also, the re-verification of existing employees and pensioners on government’s mechanised payroll system.
Speaking on behalf of the finance minister, Dr. Mohammed Amin Adam, Minister of State at the Ministry of Finance, noted that this development will address the issue of payroll integrity and save resources which would otherwise be spent on ‘ghost names’ due to irregularities.
He stated that this will eliminate the need for regular payroll audits, which should save the country a significant amount of money. Furthermore, this development will contribute to the efficiency of payroll administration and support economic development.
