Government And Selected Commercial Banks Signed Agreement For The Provision Of On Site Banking Services For MDAs

Government and seven commercial banks have signed an agreement for the provision of on-site daily collection banking services for selected MDAs to improve efficiency in revenue collection.

It is expected to also improve risk management and a more efficient and timely transfers. Under the terms of the agreement, the banks are to locate a collection facility at the premises of an MDA where the collection warrants it.

They are also to locate a bank at one central point where there is a cluster of MDAs collecting non tax revenue or internally gernerated funds; provide mobile collection services daily to some selected MDAs; locate one payment point in each regional administration and provide daily collection service for MDAs outside the Regional Administration area.

In a speech before the signing, Hon. Kwadwo Baah-Wiredu noted that the new arrangement will ensure that collections are promptly paid into the consolidated fund after receipt by banks. This will reduce the incidence of revenue leakage due to fraudulent receipting and handling of cash.

"The new arrangement will also prevent the appropriation of collections without legislative approval and streamline the introduction of on-site banking service to MDAs and ensure that it is done properly and orderly within existing laws", he added.

He explained that under the terms of engagement the banks will among other things required to transfer all moneys collected on behalf of the MDAs into designated accounts within 48 hours.

They are further required to provide real time access to MDAs , Ministry of Finance and Economic Planning and the Controller and Accountant General for verification.

He cautioned that there are likely to be teething problems, and urged them to cooperate with each other for the project to be a success.

"There are a lot of challenges facing our Ministry in the area of revenue collection and I am confident that we can collaborate with you in some of these areas to improve revenue generation and consequently the livelihood of the people of this country".

The Controller and Acccountant General, Mr. Christian Sottie appealed to the banks not to reneged on the agreement to transfer the funds within 48 hours as agreed.

He said this new project was part of the reforms being undertaken by his office to make their service efficient, client service friendly and reiterated that monies would be properly accounted for.

He disclosed that next year workers would be paid with biometric smart cards all in a bid to ensure efficiency and accountabilty.

Mr. Daniel Gyimah, MD of the National Investment Bank on behalf of the Banks assured government of the banks commitment and cooperation to the project adding that they expected the same from the MDAs.

On site banking was introduced as a pilot project at the DVLA headquarters and the High Court Accra in 2006. the Trust Bank and the HFC Bank were involved in these pilots.

Initial assessment has revealed that both banks recorded an increase of over 50% in revenue collections as compared to cash received by cashiers and lodgers.

The Banks involved in the new arrangement are, Ghana Commercial Bank, National Investment Bank, Merchant Bank, The Trust Bank, HFC Bank, Fidelity Bank and Prudential Bank.

The MDAs are Ministry of Water Resources, Works and Housing; Ministry of Trade, Industry, PSD and PSI; Ministry of Interior; Lands Commission; Ghana Immigration Service; Registrar Generals Department; Driver and Vehicle licensing authority; Births and Deaths Registry; Land Title Registry and Ghana News Agency.

The rest are; Geological Survey Department; Land Valuation Board; Department of Parks and Gardens; Survey Department; and the Judicial Service.

The MDs of the the various Banks and the Hon. Minister signed the agreement whiles the Chief Executive officers of the MDAs present witnessed the agreement.
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