A special audit of the Social Security and Housing Finance Corporation (SSHFC) has found that board members received D5.398 million in duplicate payments over a 30-month period, in breach of corporate governance rules for state-owned enterprises.
The audit, which covered January 2022 to June 2024, was presented to the National Assembly’s Public Enterprise Committee. It revealed that board members were paid both monthly allowances and sitting allowances at the same time, a practice auditors said contravenes the Code of Corporate Governance for state-owned enterprises.
According to the report, monthly and sitting allowances, normally reserved for the board chairman and the managing director, were extended concurrently to board members.
Interviews with the managing director, board secretary and board chairman confirmed that the payments were made, with officials acknowledging they were unaware that the arrangement violated governance rules.
Auditors said the dual payments resulted in unnecessary financial outflows, limiting funds available for the corporation’s operational needs.
The audit recommended that the managing director and board chairman take steps to recover the payments and introduce training to ensure board members and senior management understand financial and governance regulations governing state-owned enterprises.
In its response, management said sitting allowances are paid only for extraordinary meetings and are limited to committee members and invited officers attending subcommittee sessions, adding that the practice aligns with corporate governance standards.
Management also said a formal board charter would be developed to clarify meeting schedules, allowance payments and other operational matters. The charter is expected to be approved by the line ministry and implemented by July 2025.
While noting that some payment practices may reflect past arrangements, the audit maintained that the duplicate disbursements, amounting to about D5.4 million, constitute a serious governance breach.
The report added that during a meeting on March 3, 2025, involving auditors, the National Audit Office and SSHFC management, officials agreed to discontinue sitting, emergency and other allowances for board members while maintaining monthly allowances.
However, auditors said recovery of the duplicate payments had not been completed at the time the report was finalised.
By Adama Makasuba
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