Audit flags procurement, financial control irregularities in National Cathedral project

A management letter issued by Deloitte Ghana has flagged extensive procurement breaches, financial irregularities, and internal control deficiencies in the financial management of the National Cathedral of Ghana project between 2021 and 2023.

The findings raise fresh questions over accountability and transparency in the handling of the state-supported project.

According to the audit report addressed to the Board Chairman of the National Cathedral of Ghana, Deloitte noted numerous instances where the project failed to comply with statutory procurement regulations, internal financial controls, and basic accounting practices.

The report cites single-source procurement of key consultants, failure to constitute a proper procurement committee as required by law, and multiple breaches of the Public Procurement Act. These lapses, the report indicated, contributed to significant disparities in the financial records and exposed the project to the risk of financial mismanagement.

One of the major issues identified involves discrepancies in payments made to Sir David Adjaye & Associates Limited, the project’s principal architect. Deloitte’s audit found inconsistencies between the amounts confirmed by the Office of the President and those declared by the architect. For example, while the Office of the President confirmed payments totaling GHS 113 million, Adjaye & Associates’ records reflected over GHS 117 million – a difference of GHS 4.9 million.

Additionally, portions of the contract value listed under “Mobilisation” and “Use/After Care” totaling $2.7 million lacked detailed scope of work, raising questions about value for money. The audit also highlighted $12.4 million in variation orders for additional work – including a 350-seater restaurant and a Bible Museum extension – which had no formal signed agreements, in breach of the original contract terms.

Deloitte’s letter further criticized the project’s financial management for making payments before contracts were executed. “Payments made by the Government before the signing of the official contract could lead to the dereliction of duties on the part of the Design Team, as there is no agreement in place to enforce or check compliance,” the report noted.

Concerns were also raised over expenses related to Cary Summers and The Nehemiah Group, consultants hired for the project. The Nehemiah Group’s contract, initially signed for one year in March 2020, was not formally renewed despite continued payments after the expiration date. Deloitte noted that over $523,000 had been paid to the group post-contract expiration without ratification.

The audit criticized spending on fundraising events in the US, amounting to over $110,000, which yielded no tangible financial returns. Management defended this as part of a long-term strategy targeting major donors.

Furthermore, the report identified weaknesses in revenue reconciliation, particularly around donations made via mobile money, with discrepancies between records provided and actual deposits traced. Some GHS 38 million in failed or reversed transactions were not properly accounted for.

Deloitte’s letter emphasized that the project lacks effective internal controls as per the COSO framework, with material uncertainty surrounding its status as a going concern given outstanding debts of GHS 343 million to contractors and no significant funding inflows since 2022.

The auditors recommended immediate corrective actions, including reconciling all outstanding financial discrepancies, securing proper procurement approvals, and strengthening financial oversight mechanisms.