The Internal Audit Agency (IAA) is advocating for a legislative overhaul to enhance its control over internal auditors in public institutions, aiming to reduce financial leakages and strengthen public sector accountability.
Dr. Eric Oduro Osae, Director-General of the IAA, emphasized that without such reforms, the persistent irregularities in public institutions will continue unchecked.
Speaking at a media training workshop organized by the Ghana Anti-Corruption Coalition (GACC) in Accra on August 19, 2024, Dr. Osae highlighted the limitations of the current framework, where internal auditors are directly answerable to their institutional superiors.
This structure, he argued, compromises their ability to effectively safeguard against financial mismanagement and corruption.
Dr. Osae urged the government to prioritize amendments to the IAA Act, which would establish internal auditors as independent entities with the necessary resources and autonomy. “Auditors should be the first line of defense against corruption and irregularities,” Dr. Osae stated. “But as long as they remain subordinate to the very authorities they are auditing, systemic issues will persist.”
He also criticized Ghana’s reactive approach to corruption, which tends to address issues only after they occur, rather than preventing them. “We need to shift from a post facto approach to one that emphasizes prevention,” he said, advocating for a robust internal audit system to maintain fiscal discipline and ensure the effective use of public funds.
Additionally, Dr. Osae pointed out that the IAA’s lack of prosecutorial powers limits its ability to hold wrongdoers accountable, a role currently reserved for the Attorney-General’s office. He proposed that the IAA be granted prosecutorial authority as part of the constitutional reform of the IAA Act.
This push for legislative reform comes at a critical time for Ghana, as the country continues to face challenges in public financial management. The IAA believes that enhancing the independence and effectiveness of internal auditors is crucial for preventing financial abuses that have long eroded public trust.
The GACC training workshop aimed to improve journalists’ understanding of the Auditor-General’s reports, which have consistently uncovered significant irregularities in areas such as cash management, procurement, and contract execution, leading to the misappropriation of billions of cedis. Executive Secretary of the GACC, Mrs. Beauty Nartey, emphasized the media’s role in promoting transparency and accountability, calling for improved training to ensure accurate coverage of the Auditor-General’s findings and recommendations.
