The results of the forensic audits ordered by the JAK's Administration, in line with its zero tolerance for corruption crusade, are out. And they are mind-boggling, to say the least. A few top officials in the 11 state enterprises and agencies audited caused a total loss of at least One Trillion and three hundred billion cedis (?1,291,224,819,168.00) to their institutions and ultimately to the state of Ghana.

According to a copy of an 11-page document, entitled "Forensic Audit Report- Summary of Findings" that The Heritage has seen, the reasons for the colossal loss are mostly negligence and deliberate fraud. In one instance ?3.44 billion ($400,000) was transferred to a company for no service rendered. The institutions audited include the State Insurance Company (SIC), Electricity Company of Ghana (ECG), Social Security & National Insurance Trust (SSNIT), Tema Oil Refinery (TOR) and National Insurance Company (NIC).

The others are the Ghana Water Company (GWCL), Divestiture Implementation Committee (DIC), Ghana Heavy Equipment Limited (GHEL), Ghana National Petroleum Company (GNPC), the Ghana Reinsurance Commission and the Bulk Oil Storage and Transport (BOST).

The GNPC topped the list as the institution where the greatest financial loss to the state occurred. It breasted the tape with ?686.6bn. The single largest loss also occurred at the GNPC; it was ?344 billion ($40m) as a result of the derivatives loss to Societe General Bank, allegedly undertaken without Board approval.

The other components of the loss at GNPC were $38 million (alleged "reckless purchase of rigs without Board approval); $1.0 million (investment in Valley Farms Limited without Board Approval) and ?7.2 billion (disbursement of an advance from CHD Financial Services without Board approval). One person is alleged by the report to have occasioned all the losses.

The second largest loss occurred at SSNIT where ?370,365 billion and DM 2.78 million went down the drain in 14 different transactions. They included ?528,671 million (payment of variation cost in excess of approved amount); $594,000 (over pricing of property - Massillia House - procured from CFAO by Obotan Developers Ltd); $120,000 (inappropriate payment of real estate agency fee in relation to Obotan Developers Ltd); ?74 billion (mismanagement at Wahome); $15 million (short delivery of about 230 rooms paid for by SSNIT at Golden Beach Hotels); $330,000 (double payment to Financial and Legal Consultants of Golden Beach Hotel and $60,000 (double payment to the same Financial and Legal Consultants of the same Golden Beach Hotels).

Others are ?77 billion (issuance of credit guarantees to Vanef for acquisition of STC without Board approval, without a proper asset and business valuation); ?1.751 billion (loans to Ogua Hotels Ltd without Board approval and without any loan agreement). DM2.78 million (credit guarantees to BMK Particle Board without approval of SSNIT Board); ?15 billion (SSNIT staff seconded to manage Bridal Trust rather ran down the company through misapplication of loans); ?450 million (untimely disposal of 1.0 million shares of Aluworks, close to dividend payment) and ?120 million (placement of the Aluworks share proceeds on call for seven weeks leading to financial loss to SSNIT).

The rest are: ?2.29 million (under payment of share subscription by SIAT Ghana Ltd); ?1.08 billion (underpayment of share subscription in SIAT by Africa Tiger Mutual Fund); $370,505 (wrongful payment of success fees and other supposed start up costs to CTAC); $2.0 million (over pricing of equipment at BEESBLOCK); $765,000 (alleged lack of evidence that Regimmannuel Gray paid up its share subscription in BEES BLOCK); ?5.7m (default on SSNIT loan to FIDAN Construction Ltd and 100 percent provision for bad debt without recourse to collateral); $144,381 (manipulation of the bid process for purchase of computers & accessories); ?63.6 million (payment in excess of acquired shares in Grand Regency Hotel); ?1.35 billion (non payment of share contribution by partner in Grand Regency) and ?528 million (excess payment to project consultants on Legon Students Hostel).

The third place was taken by the SIC, with a loss of ?71,757 billion over three transactions: ?67 billion (excessive recklessness in underwriting of Credit Guarantee Bonds); ?257 million (former Board Chairman used position to benefit from a credit guarantee and has defaulted in repayment ) and ?4.5 billion (procurement of "Arrive Alive" playing cards at inflated price and without board Approval)

Fourth in the league of causers of financial loss to the state is TOR which recorded a total of ?67.719 billion in four transactions: $4.0 million ( award of contract for steam Boiler Plant without tender and without Board authorization and possible inflation of contract); $1.002 million (award of contract for construction of storage tanks to an uncompetitive bidder); ?942,333 (glass reinforced pipes fund to be defective after installation and final payment to supplies) and $1.2 million /?113,753 (award of hedging contract to UBS without board authorization).

The Ghana Reinsurance Company placed fifth with a total loss of ?46.957 billion from four transactions: ?3.3 million (investment in Meridian BIAO without Board approval); ?360 million (illegal investment in Celltel company); $28,500 (loss of commission on Ghana Airways Insurance Cover) and $17,637 (procurement of computers at inflated prices)

Sixth on the list is the DIC which smeared itself with ?20.426 billion from four transactions: ?120 million payment of 12 months sitting allowance to Board members though there were only three sittings in the year); $400,000 (transfer of money to Goldshield Contact Service Ltd for no services provided); $369,292/?29.651 million (release of excessive sum of money for Pan African Investment Summit without Board approval) and $1,081 million /?4.362 billion (excessive amounts paid to particular companies for adverts).

The ECG placed 7th with losses of ?13.956 billion from seven transactions: $1,218 million (award of contract for meters without Board approval and excessive mark up of the cost); ?67,070 (over pricing of Cable Lugs by supplier); ?61,409.61 (over pricing of tyres by supplies), ?25,371 (over pricing of tyres by supplier), ?67,754.61 (over stocking of tyres); ?20,021.95 (unfair pricing and overstocking of tyres) and $4,794.4/?31.5 million (unfair pricing and overstocking of protective clothing). There were also system losses of ?256 billion per year.

Eighth on the list is GWCL which saw losses of ?10,623 billion from four transaction: ?5.3 billion (excessive purchase and over pricing of stationery to last between 2-110 years); ?2.0billion (over pricing of American Khaki and suiting materials); ?3.0 billion (over pricing of domestic half inch pipe meters) and ?323 million (over payment for cast iron pipe fittings)

The Insurance Commission placed ninth with a total loss of ?1.409 billion from four transactions: $96,500 (change of Ghana Airways reinsurance brokers for a personal commission); $28,500 (loss of commission by Ghana Reinsurance over the Ghanair change of broker); 253.346 million (over payment to supplier of stickers and Return Forms); ?806 million (excessive expenditure on private property of NIC officials) and Volvo Car (GR 4588) former Commissioner is holding the car on his own authority).

The BOST placed 10th with a loss of ?1.268 billion from four transactions: ?501 million (non-invoicing of oil products to oil marketing companies); ?245 million (non-deduction of with-holding tax from payments to suppliers); ?469 million (haulage claims without delivery Notes and waybills) and ?44 million (non-delivery of Assets Register despite payment)

At the bottom is the GHEL with a loss of ?821.473 million from four transactions; $18,505.5 (payment of foreign medical bills without Board approval);' ?193 million (payment of monthly directors' fees from Nov. 1998 to October 2000 though there were only two meetings during the period); ?25,094.67 (over payment for supply of materials) and ?118 million (wrongful payment of director's fees from March 1997 to July 1998).

The auditors' recommendations ranged from prosecution of the officials involved, including a former Minister; retrieval/refund of monies, disciplinary/sanctioning of officials and blacklisting of companies/suppliers.