The audited financial statements of the Ghana Trade Fair Company Limited for the year ended 31 December 2020, have revealed that the state-owned firm has not paid end-of-service benefits amounting to GH¢1,695,731.71 2792.
Article 38 of the Collective Agreement between the Ghana Trade Fair Company Ltd and the Public Services Workers’ Union of GTUC states, “The modes by which an employee may leave the service of the Company with entitlements shall be as follows: i. On being declared redundant; ii. On reaching voluntary or compulsory retirement; iii. On being retired from the service on grounds of physical or mental incapacity; iv. On appointment being terminated after five (5) years of continues service other than summary dismissal; …”
Article 39 further states, “With reference to Article 38, at the time of leaving the service, an employee is entitled to an End-of Service Benefit of one and half (1½) months gross salary times the number of years served”.
“We noted from the review of the ledgers that the company owed 22 former employees end-of-service benefits as of 31 May 2020, which is currently under mediation with the Public Service Workers Union and GTFCL.
The report noted that the management of the Ghana Trade Fair Company Limited said the termination of the services of the affected employees, coupled with financial challenges, caused the irregularity.
“The unlawful termination of the service of the affected employees has exposed the Company to possible legal penalties and reputational risk. Additionally, some of these former employees have sued the company demanding their accrued benefits”, the report added.
The Audit Service urged the management and the Board “to corporate with the mediation process to resolve the impasse with the affected employees toward the liquidation of the debt to avoid prolong legal battle and penalties for the company”.
The management of the Ghana Trade Fair Company Limited responded that its “legal representation is fully co-operating with all stakeholders for a peaceful settlement of the matter as advised”.
report noted that the management of the Ghana Trade Fair Company Limited said the termination of the services of the affected employees, coupled with financial challenges, caused the irregularity.
“The unlawful termination of the service of the affected employees has exposed the Company to possible legal penalties and reputational risk. Additionally, some of these former employees have sued the company demanding their accrued benefits”, the report added.
The Audit Service urged the management and the Board “to corporate with the mediation process to resolve the impasse with the affected employees toward the liquidation of the debt to avoid prolong legal battle and penalties for the company”.
The management of the Ghana Trade Fair Company Limited responded that its “legal representation is fully co-operating with all stakeholders for a peaceful settlement of the matter as advised”.
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