Pursue receivers for locked up funds - Auditor-General to University of Cape Coast

BY: Suleiman Mustapha
University of Cape Coast
University of Cape Coast

The 2020 Auditor-General’s report has revealed that the University of Cape Coast could not access over GH¢9 million it invested in two failed investment companies, First Banc and Gold Coast Fund Management due to the lack of due diligence on those firms.

It has therefore recommended to the management of the university to pursue the recovery of the money or risk losing GH¢9,123 million.

The Securities and Exchange Commission (SEC) on November 8, 2018, revoked the licences of over 50 investment companies, including First Banc and Gold Coast investment firms.


“We recommended to Management to pursue the recovery of the investments from the receivers of First Banc and Gold Coast Fund Management through the Security and Exchange Commission”, the 2020 Auditor-General’s report stated.

“We attributed the lapse to insufficient due diligence performed on these companies before the investment”, it added.

Management response

But the university’s management in response indicated that it had written to PricewaterhouseCoopers (PwC), receiver of the affected fund management companies to recover the amount.

It further indicated that the affected fund management companies had proceeded to court and the university was awaiting the ruling of the court to determine its next action.

University’s account

In a related audit of the university’s accounts, it was established that the university granted study leave with pay to Mr Michael Ayikwei Quarshie, an officer of the university, to pursue further studies. However, he failed to return and serve the university after completing his programmes of study.

Further review disclosed that out of a total amount of GH¢17,563.42 owed by him, the university has recovered a total amount of GH¢14,000.00 with a difference of GH¢3,563,42 yet to be recovered.

The Auditor-General in its 2020 report, recommended that the management pursue the affected officers and their guarantors to refund the total amount of GH¢3,563, 42 to the university, failing which the total amount of GH¢GH¢3,563, 42 should be recovered from the Vice-Chancellor.

“We recommend that Training and Development Committee members be held for their failure to ensure due diligence before granting the study leave”.

Management, in response, indicated that the affected officers had agreed on a payment plan with the university’s management to settle the debt.