The Public Accounts Committee (PAC) has raised concerns about the Ministry of Finance’s decision to commit over US$449,000 (GH¢5.39 million) to rent office accommodation for the Millennium Development Authority (MiDA) at the Accra Financial Centre.
The tenancy agreement, signed on 20 December 2022 with Agridev Real Estates Limited, covered 434m² of office space for two and a half years. However, as of December 2023, only US$180,301.89 (GH¢1.78 million) had been paid, leaving arrears of 11 months covering February to December 2024.
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PAC members questioned why such a huge amount had been committed for a 20-member staff organisation that is not revenue-generating, suggesting that the government could have instead purchased a property for long-term use.
When asked about the arrears, officials from the Ministry of Finance admitted the rent had not been fully paid. They explained that part of the security deposit in the contract had been converted into payment, but could not provide full details of how much had been cleared and how much remained outstanding.
The Committee, led by its Chair Hon. Abena Osei Asare, the MP for Atiwa East, expressed frustration that Finance Ministry officials were not fully briefed on the issue despite the audit report being in circulation for months.
Deputy Minister of Finance, Thomas Nyarko Ampem, assured the Committee that the contract had since been abrogated due to its exorbitant cost.
“We have taken a firm decision to discontinue the rent arrangement because we agree with the auditors that it is unsustainable. We are working with the Public Works Department to secure cheaper accommodation for MiDA. We will also provide the Committee with detailed arrangements on how the outstanding arrears will be cleared,” he said.
Meanwhile, MP for Mpraeso, Davis Ansah Opoku, advised the Ministry to set clear policies to prevent MDAs from entering into similar expensive rental agreements.
“This is not the first time we are seeing such cases. Some MDAs continue to rent high-cost facilities even when government-owned offices are available. The Finance Ministry should consider issuing a directive to stop this trend,” he urged.
The PAC has directed the Ministry of Finance to furnish it with a full breakdown of payments made so far, the outstanding arrears, and timelines for clearing the debt to ensure the matter does not resurface in future audit reports.