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AUCC fails to pay GHS4.7m as buyout of Venture Capital Trust Fund’s 30% stake – A-G report

It has emerged that the African University College of Communication Limited (AUCC) failed to make payment on the agreed amount of GHS4.7million as a buyout of Activity Venture Capital Trust Fund’s (AVFC) 30 per cent stake in AUCC, denying the Trust Fund its share of GHS1,410,000.00 (40%) per the agreement on the distribution of returns among the shareholders of Activity Venture Finance Company (AVCF).

This was contained in the Auditor-General’s report on the public accounts of Ghana, public boards, corporations and other statutory institutions for the period ended 31 December 2020.

The auditor-general has, thus, entreated the management of the Trust Fund to pursue AVFC to ensure the recovery of GHS1,410,000.00 (40%) of their share in AUCC.

According to the report, the Trust Fund, which became operational in 2006, is unable to effectively execute its mandate as the driving force of the private sector of the Ghanaian economy since the National Reconstruction Levy Act, 2001 (Act 597), its primary source of funding, was repealed in early 2007.

“Since the abolishment of the National Reconstruction Levy Act, the Trust Fund has had to rely on the Ministry of Finance for irregular and inadequate funding till date,” the report stated.

The A-G has, therefore, urged the Board of Trustees to liaise with the Sector-Minister to set up an alternative statutory funding source for the Trust Fund.

Furthermore, in the interim, the Board of Trustees together with Management have been advised to push for the release of the budgetary allocation reserved for the Trust Fund.

The A-G also noted that the Ministry of Finance is unable to meet the Trust Fund’s annual operational budget since the abolishing of the National Reconstruction Levy Act, 2001 (Act 597) and urged the Board of Trustees to liaise with the Sector-Minister to set up an alternative statutory funding source for the Trust Fund.

Source: Classfmonline.com

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