PAC Grills YEA Over GH¢5.5m Office Space, Salary Breaches

The Public Accounts Committee (PAC) of Parliament has raised serious concerns over financial irregularities at the Youth Employment Agency (YEA), including ballooning rent payments, failure to remit pension contributions, and the payment of unearned salaries flagged in the Auditor-General’s 2024 report.

Appearing before the committee on Friday were the Chief Executive Officer of YEA, Malik Basintale; the agency’s Finance Director, Benjamin Otto; its internal auditor; and representatives from the Ministry of Youth Development and Empowerment.

At the centre of the hearing was a rent deal between YEA and K&A Developers Limited, private managers of the Olympic House—the agency’s headquarters. The Auditor-General reported that YEA’s expenditure on rent and service charges jumped from GH¢3.2 million in 2023 to GH¢5.5 million in 2024, a 72.65% increase.

PAC chairperson Abena Osei-Asare described the increment as “unacceptable”, criticising management for failing to negotiate better terms or explore cheaper alternatives.

In response, Mr Basintale explained that the Ministry of Works and Housing had handed management of the building to K&A Developers, obliging YEA to pay rent to the private entity. He admitted, however, that the arrangement was unsustainable and disclosed that discussions were underway with the Chief of Staff to secure a permanent office to end recurring rent costs.

The committee flagged the matter for deeper investigation, particularly the role of the Works and Housing Ministry in transferring management of a state-owned property to private hands.

Beyond rent, YEA was cited for failing to remit GH¢1.7 million in SSNIT and pension contributions on salary arrears between January and July 2024. The Finance Director told the committee that the arrears had since been cleared, with receipts submitted to SSNIT and GLICO—an assertion auditors confirmed.

The agency was also queried for paying GH¢161,222 in unearned salaries to 26 staff, including individuals who had vacated their posts. While 15 of the staff remain at post, YEA said it had written to the others demanding refunds and pledged to involve the police if they failed to comply.

PAC members, dissatisfied with the pace of recovery, warned that management could be held personally liable if the funds were not retrieved promptly.

In another instance, the committee discovered that Felix Owusu Gyimah, YEA’s Nkwanta South Municipal Director, continued to receive GH¢37,413 in unearned salaries after assuming a new role as Municipal Chief Executive. YEA has agreed to deduct the money from his current salary in instalments, but PAC insisted the refund must include interest.

Additional irregularities cited included wrongful allowance payments of GH¢21,000 to seven officers who abandoned their posts in Tuobodom and withholding tax shortfalls on rent payments to private facility managers.

In his defence, Mr Basintale said YEA was strengthening internal controls to curb future lapses, including training for district directors and improved monitoring systems. He admitted that the agency faced challenges in validating beneficiaries, which created loopholes exploited in payroll management.

“When I took over, we realised that we had inherited assets and liabilities. It was in our interest to streamline processes at YEA. There are new reforms we’ve brought on board, and we shall ensure they are strictly adhered to,” he told the committee.

PAC has directed YEA to expedite recovery efforts and provide periodic updates on progress, stressing that accountability in the management of public funds remains paramount.

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