PAC Instructs Ghana Cylinder Company To Remit Tax Indebtedness To GRA

Chief Executive Officer

The Public Account Committee(PAC) of Parliament has instructed the Ghana Cylinder Manufacturing Company(GCMC) to as a matter of urgency remit a total of Ghc111,651.28 within the next 14 days whiles urging management to ensure productivity.

The said amount was captured by the 2018  Auditor General’s report as an  irregularity by the company against the tax laws of the country through the non- remittance of withholding tax on goods and services between 2014 and 2017 by the company to the Ghana Revenue Authority (GRA).

Chairman of the Committee, James Klutse Avedzi initially gave the company seven days to remit the said amount but yielded to the 14 days plea by the Chief Executive Officer of the company, Ms Frances Asiam to enable her outfit settle the debt owed the state.

From the report, the Auditor General discovered that the board of GCMC had as at Thursday, 21 September, 2017, determined and approved monthly fees and sitting allowances for themselves in contravention with Section 194(1) of the Companies Act 1963.

According to the report, the monthly allowances of officials were increased from Ghc 650.00 for Chairman and GHSGHS550.00 for members to Ghc 3000 for Chairman GHS3000.00 and Ghc2000.00 respectively.

The sitting allowance was also increased from Ghc600.00 for Chairman and Ghc500.00 for members to Ghc1000.00.

Subsequently, the board members were paid sitting allowances and monthly fees totaling Ghc2,400.00.

Other infractions cited by the Auditor General’s report against the company include the payment of a total amount of Ghc 52, 400.00 unapproved allowances to the Board of Directors, purchases of Ghc 357, 747.26 not accounted for, failure to withhold taxes on Board members allowances Ghc 4,400.00, unaccounted impress of Ghc 10,000.00, unplanned procurement and non-existence of procurement unit, inappropriate method of procurement among others.

Responding to the Committee’s disappointments as to why such infractions should  occur under her watch, the CEO, Madam Frances Asiam assured of her commitment to right the wrongs of the past in other to make the company liquid.


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