Corruption Unveiled: GIISDEC CEO, Deputy CEO F & A and Director of Finance under Fire for Financial Irregularities and Mismanagement

In a shocking revelation, the Ghana Integrated Iron and Steel Development Corporation (GIISDEC) has been embroiled in a scandal involving mismanagement of funds and blatant corruption at the highest levels of leadership.

Documents available to Metro TV revealed series of dubious financial practices, including increase in employees’ salary which does not in any way, reach the benefactors, the difference running into millions of Ghanaian cedis, which is unaccounted-for.

According to an intercepted document, Ghana Integrated Iron and Steel Development Corporation (GIISDEC) at its inception sought the assistance from the Fair wages and Salaries Commission (FWSC) to develop a compensation plan, a salary structure which was benchmarked with Ghana Integrated Aluminum Development Corporation.

However, a letter dated December 7, 2020 for compensation structure issued by Ministry of Finance (MoF) for staff Condition of Service, annulled the earlier arrangement with FWSC. Following that, Staff were subsequently placed on Step 1 of the Ministry of Finance compensation structure with the instruction not to vary same for two years. It was the time Financial Clearance was given to 48 staff including all the Government executive appointees, with a total monthly compensation package of GHC 528,816, which amount stood same between September 2020 to December 2021, this reporter gathered.

Further scrutiny of the document shows that in 2022, workers detected that staff compensation had risen to GHC 681,204, an average increase of 28.82% but staff salaries remain unchanged. Further investigation into the matter revealed that the Director of Finance used Step 3 of the MoF salary Structure throughout 2022 fiscal year in requisition for staff compensation package, a situation which compelled the workers to ask questions.

When this detected discrepancies in salary was brought to the attention of management, the Director of Finance Prince Ofosu Baakoh, on behalf of Chief Executive Officer Kwabena Bonsu Fordwor and the Deputy Chief Executive Officer, Finance and Administration Nicholas Andoh, acknowledged the discrepancies but was quick to explain that it was an arrangement to cater for some twenty (20) contract staff who do not have Financial Clearance, as well as other payments for goods and services.
This explanation did not go down well with the staff as they felt disrespected and cheated. Reason being that, in the books of the Ministry of Finance, the workers have been migrated from Step 1 salary structure to Step 3, but in actual fact, these workers are being paid by management of GIISDEC using Step 1. (Find MoF approved salary structure below)

The document revealed that the difference in compensation not remitted to the qualified staff in 2022 alone was a staggering GHC 1.832 million. Multiple sources informed this reporter that the exact amount of money was allegedly captured in Internal Audit Agency (IAA) preliminary audit report.

What is more worrying is, this reporter found out that in 2023, the Step 3 salary structure was upwardly adjusted by 15% for compensation request which was granted and approved by MoF. Unfortunately, workers were still paid using Step 1, denying them what was rightfully theirs.

Anonymous concerned employees who spoke to this reporter confirmed that the total monthly compensation throughout the year 2023 stood at GHC 791,414, a reflection of 49.66% increment between 2020 and 2023, however, interestingly staff salaries remained the same. Compensation analysis computed for the year 2023 established GHC 1.45 million not distributed to staff. Once again, when the staff confronted the management. the previous excuse was given. “The difference is used to settle compensations of 20 contract workers and other expenses”

“There was a stalemate recently over compensation issues between the Chief Executive Officer and the general staff. You will recall that 25% increment on salaries was applied and granted by MoF for the whole 2023 year. In our application for first quarter compensation request this year, CEO told workers in a staff meeting that his finance team cannot apply for the 25% increment, even on the Step 1. According to him, that was a verbal directive he received from Director of Compensations from MoF”

“Hence, first quarter application for compensation was sent using step 1. A ridiculous decision one can hardly understand. This means workers have not seen at least, a marginal increase since the year 2020” said a staff who pleaded anonymity.

The above illegal deductions from workers’ salary, compelled a member of GIISDEC staff to report the issue to the Criminal Investigation Department (CID) which led to arrest of Director of Finance prince Ofosu Baakoh and Internal Auditor Francis Bekoe by Financial Forensic Unit of the Police CID.

This reporter also chanced on a letter dated March 14, 2024, which a staff of GIISDEC caused his solicitors to petition the Board, drawing their attention to an illegal deductions amounting to over GHC400,000 from his salary, and asked that same be paid back to him as he rightfully earned. But this petition has fallen in death ears, signaling a legal battle and potential judgement debt.

Another angry and disappointed staff told this reporter in confidence a letter he presented to the Office of Special Prosecutor to investigate what he called “fraudulent dealings” of some persons in management position.

It is also emerging that workers at GIISDEC no more receive their salary monthly as the CEO allegedly unilaterally changed the salary due day from monthly to quarterly. “As we speak, our compensations are not in since January. It has been changed from monthly to quarterly, so I’m here with no money. It is sad” a dejected worker said.

Another troubled worker explained “Yes And it’s all deliberate. They starve you for 3 months, so by the time you receive the salary, you’re too hungry to complain. We’re in April but have yet to receive January salary. Can you imagine?”

Another damaging concern raised by the anonymous concerned employees, has to do with issuance of financial clearance for the replacement of twenty staff members, despite only six resignations being recorded since inception of GIISDEC, of which three have since been successfully replaced following due process. This discrepancy raises serious questions about potential underhand dealings within the GIISDEC and Ministry of Finance.

The Financial Clearance letter which is available to this reporter, is dated 31st January, 2024, has a signature of a Deputy Minister for Finance Abena Osei-Asare and copied Minister of Finance, Minister of State, MOF, Deputy Minister, MOF, Chief Director, MOF, Ag, Director of Budget, MOF, The Controller and Accountant-General, The Auditor-General, The Head, CPMU, MOF and the CEO, GIISDEC. (Find image below)

This current move is raising much concern among the workers since there has only been three vacancies, and the requirement is to fill only existing vacancies. To some of these worried workers, the move is only going to overburden the budget of GIISDEC while fearing continuous perpetration of fraud on the state.

Amidst this turmoil, it has come to light that the corporation has been operating without proper oversight, with no board meetings held for three consecutive months, leaving GIISDEC in an “auto-flying mode.” The last time the board met was in second quarter of 2023.

As the gravity of the situation unfolds, calls for accountability and transparency have intensified. These concern staff of GIISDEC are directing the Chief Executive Officer to rectify outstanding payments and implement a fair compensation structure based on MoF guidelines.

Additionally, they are calling for an urgent investigation to uncover the truth behind the financial clearance for staff replacements.

With administrative chaos and allegations of malpractice rampant within GIISDEC, they believe there is the need for a leadership reshuffle to restore integrity and trust in the corporation’s operations.

The scandal at GIISDEC serves as a stark reminder of the critical importance of transparency and accountability in public institutions.

All attempts to reach the CEO, Kwabena Bonsu Fordwor, Deputy CEO Finance and Administration Nicholas Andoh and Director of Finance Prince Ofosu Baakoh to respond to these allegations, proved unsuccessful.

We shall however update our readers as soon as we hear from them.