The 2020 Auditor-General’s Report has revealed that African University College of Communication Limited (AUCC) has failed to pay a GH¢4.7million agreed buy-out of 30 percent stake of the AUCC owned by Activity Venture Capital Trust Fund (AVCTF).
According to the Report, this had denied the Trust Fund of its share of GH¢1,410,000.00, being 40 percent of its share of the amount, as per an agreement on the distribution of returns amongst the shareholders of Activity Venture Finance Company (AVCF).
The Auditor-General, therefore, entreated Management of the Trust Fund to pursue AVFC to ensure the recovery of the GH¢1,410,000.00 as its share in AUCC.
The Trust Fund, which became operational in 2006 is unable to effectively execute its mandate as the driving force of the private sector of the Ghanaian economy since the National Reconstruction Levy Act, 2001 (Act 597), its primary source of funding, was repealed in early 2007.
It said since the abolishment of the National Reconstruction Levy Act, the Trust Fund has had to rely on the Ministry of Finance for irregular and inadequate funding to date.
The report urged the Board of Trustees to liaise with the Sector-Minister to set up an alternative statutory funding source for the Trust Fund.
It asked the Board of Trustees and the Management of the Trust Fund to push for the release of the budgetary allocation reserved for the Fund.
The Auditor-General’s report further indicated that the Ministry was unable to meet the Trust Fund’s annual operational budget since the abolishing of the National Reconstruction Levy Act, 2001 (Act 597).
It, therefore, urged the Board of Trustees to liaise with the Sector-Minister to set up an alternative statutory funding source for the Trust Fund.
Meanwhile, two former staff of the Securities and Exchange Commission, who resigned in 2015 and 2016 financial years respectively had an outstanding loan of GH¢15,788.16 as of the end of the year 2019.
The report recommended to Management to ensure that the outstanding balance was collected or consider seeking approval from Parliament for the write-off of the amount through the Board.