The Chief Executive Officer of the Ghana Cylinder Manufacturing Company (GCMC), Frances Essiam, has revealed how Board members of the company in 2017 unilaterally determined their allowances that saw increments of up to 200%.
Appearing before Parliament’s Public Accounts Committee sitting last week, Madam Essiam disclosed that when the Board of Directors met on Thursday, September 21, 2017, just after their induction, they determined their monthly fees and sitting allowances.
In her explanation, the Chief Executive indicated that management informed the Board members that the existing allowance was GH¢500 before their appointments but the board refused to listen and effected its increments.
According to her, she was compelled to seek clarification from the Energy Ministry which indicated that Ministry in consultation with the Finance Ministry is responsible for determining board allowances.
“Mr Chairman, they threw us out of the room, me and my HR then who was taking their minutes. I apologize on behalf of the management but we believed when it came to board issues, I should be saying it this way.”
Earlier, the Member of Parliament for Tamale Central, Murtala Mohammed had raised concerns over the failure of the company to honour its tax obligations to the state.
He pointed out that Section 117 (1) of the Income Tax Act 2015, Act 896 makes failure to pay income tax on the due date without reasonable excuse an offence.
“You haven’t been able to honour your tax obligations and yet you increase the allowances of the board members, some up to 200%. And you think that this law should not be applicable? Is it deliberate? If you could tell this committee because I didn’t see any clear reasons given,” he said.
The Auditor-General’s 2018 Report on the Public Accounts of Ghana, Public Boards, Corporations and other Statutory Institutions reports that contrary to the tax laws, the company did not withhold taxes on the sitting allowances paid to the Board members, which denied the government a tax revenue of GH¢4,400.00.
Source: thenewsroomonline.com