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Government in agreement with seven
banks for the provision of on site collections
Accra, Dec. 21, Ghanadot/GNA - Government on Friday signed
an agreement with seven commercial banks for the provision
of on site and daily collection banking services to selected
Ministries, Departments and Agencies as a means to reduce
the incidence of revenue leakage due to fraudulent
receipting and handling of cash.
The Minister of Finance and Economic Planning, Mr Kwadwo
Baah-Wiredu, representatives of the seven commercial banks
and the MDAs signed the agreement.
The Ghana News Agency and 14 other MDAs, are to participate
in the pilot phase of the arrangement.
Mr. Baah-Wiredu said the measure was to improve the level of
public financial management in the area of domestic resource
mobilization, increase the share of Non-Tax Revenue as a
percentage of domestic revenue from the current 6 per cent
to between 10-12 per cent.
Besides, the arrangement by government will improve the
collection mechanism, improve risk management and ensure a
more efficient and timely transfer as well as prevent the
appropriation of collections without legislative approval.
Under the term of the agreement, the bank would pay into the
consolidated fund, the daily collection of monies within 48
hours.
Mr. Baah-Wiredu said initial assessment of the workings of
the arrangement in the Driver Vehicle and Licensing Agency
and the High Court in Accra, where the arrangement had been
piloted since 2006 showed almost a 50 per cent jump in
revenue collections.
Mr. Daniel Gyimah, Managing Director of National Investment
Bank, said with improved information Technology systems and
facilities for weekly reconciliation of accounts with the
Bank of Ghana, the participating banks would be able to pay
the monies within 48 hours.
Mr. Christian Sotti, Controller and Accountant General,
warned that banks that would not stick to the transfer terms
would have their contracts abrogated.
GNA
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