Ghana Cylinder Manufacturing Comp. paid Blay & Assocs. ¢96k legal fees without VAT invoices, receipts – 2021 A-G’s report

The 2021 Auditor-General’s report has said a review of the contract agreements of the Ghana Cylinder Manufacturing Company, disclosed that a total of GH¢96,000 was paid to Blay & Associates “for the period under review for legal services, but not supported with monthly invoices, VAT invoice and receipts”.

The A-G said his office “recommended that the management should, in the future, ensure that all the necessary documentations are attached to payment vouchers before payment”.

Also, the report said contrary to Section 91(1) of Public Financial Management Act, 2016 (Act 921), “our review of the debtors’ ledger disclosed that various customers owed the company an amount of GH¢767,050.52 and GH¢562,575.55 as of 31 December 2019 and 2020, respectively”.

“We recommended to the management to strengthen the debt recovery process of the company”, noting: “We further urged the management to use possible legal debt recovery procedures to recover the debts to avoid bad debts”.

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“We noted that the company defaulted in meeting its financial obligations to various institutions as and when they fall due”, the report noted.

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“We recommended that the management should restructure the operations of the Company and negotiate all its liabilities to allow for favourable payments terms”, it said.

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