Eric Adjei, Chief Executive Officer of the National Entrepreneurship and Innovation Programme (NEIP), has raised concerns over irregular payment practices within the organization, revealing that some staff members with official appointment letters were being compensated through allowances rather than proper salaries.

In an interview, Mr. Adjei disclosed that upon assuming office, he uncovered documents indicating that some staff were entitled to a three-month severance package.

However, he found the arrangement questionable, given that these employees were not formally recognized under the Public Service Commission or Civil Service.

“Upon arrival at the office, I sighted a document that indicated the staff would receive a severance for 3 months,” he said.

According to him, the financial arrangement bypassed NEIP’s official budget. “I know that all the people in that office are being paid from the presidency. So if you can recruit people internally and pay them, there should be a compensation in the budget line of NEIP, which we don’t have. It is operational monies they bring. So indirectly, the money supposed to be used to run NEIP is being used to pay such people,” Adjei explained.

He emphasized that the affected staff were outside the scope of public sector employment frameworks. “They are not either under the Public Service Commission or Civil Service. And so when I saw this, I said this is wrong,” he added.

Following his review of financial records, Adjei discovered that payments made to these individuals were recorded as allowances, despite the issuance of appointment letters. “When I checked the records at the Finance Department, the people that had appointment letters, if paid, it was captured as allowance. Who can keep receiving allowance for seven years in a government job when appointment letters have been issued?” he questioned.

Adjei also raised concerns about potential tax violations within the arrangement. “Every salary worker pays withholding tax. Because they were paid as allowance, they weren't paying tax to the government,” he pointed out.

NEIP Suspends Staff Amid Ongoing Legal Review

In light of these revelations, the NEIP has announced the suspension of staff as management works to address employment irregularities and legal complications.

A statement from the organization cited challenges with staff formalization and legal restrictions on the use of operational funds for staff payments. “The legal implications surrounding employment issues prevent the use of operational resources for staff payments,” the notice read.

Effective Monday, 24th February 2025, all staff have been directed to stay away from work until further notice, as management seeks to resolve the issue. “Once these issues are adequately addressed, management may recall specific staff members whose services are deemed necessary,” the statement clarified.

Additionally, employees holding NEIP property have been instructed to return all items to the HR Officer by close of business on Tuesday, 25th February 2025. The notice warned that “failure to return any organizational property will be treated as an act of theft.”

The NEIP has extended its appreciation to staff for their understanding and cooperation during this challenging period.