Management of the University of Education, Winneba, has been asked to take necessary steps to retrieve all monies it invested with Akyepim Rural Bank together with the accumulated interest.
The Auditor-General’s report for 2020 disclosed that the tertiary institution invested over GHC 1.8million with the bank which were not rolled over nor repaid on the maturity date which fell on 30th September 2016.
According to the report, persistent request for refunds by the University was not heeded to by the Bank.
The absence of an investment policy to guide the investment of the University has been blamed for the situation.
The Auditor-General warns that this gap could lead to loss of the funds to the University.
In the report, the management of the university was asked to ensure that a comprehensive investment policy is drawn up for approval by the University Council.
Per the report, the University explained that it had a longstanding working relationship with the Akyempim Rural Bank until the Bank started facing liquidity challenges in 2015.
They added that steps have already been taken steps to ensure the security of the university’s investments with the bank.
The University says that legal action has already been taken to recover the fixed deposit investments as well as any outstanding balances on the University bank accounts with the Bank.
“The matter is pending in Court and so far, GH¢10,000 had been paid,” the report says.
Inactive Bank accounts
The Auditor-General also raised concerns over the status of the university’s bank accounts at its Winneba, Kumasi, and Mampong campuses.
The report disclosed that thirteen accounts of the University have been inactive for the past couple of years and will be treated as dormant by the banks.
It warned that the Bank may dishonour cheques issued for funds from the dormant accounts and may restrict access to account details.
University management has been advised to either close the bank accounts or ensure the active use of them as soon as possible if it is needed to transact business.