Eric Adjei, Chief Executive Officer of the National Entrepreneurship and Innovation Programme (NEIP), has exposed concerning financial irregularities within the organization, revealing that some suspended employees had been receiving payments without fulfilling their tax obligations to the government.

In an interview, Mr. Adjei explained that upon taking office, he discovered a document outlining plans for affected staff to receive a three-month severance package.

However, his investigation raised red flags when it became apparent that these individuals were being compensated through allowances rather than formal salaries—despite holding official appointment letters.

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

Adjei noted that these staff members were not officially classified under the Public Service Commission or Civil Service and questioned the legitimacy of using operational funds to pay them.

“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,” he stated.

Highlighting the lack of formal employment recognition, Adjei said, “They are not either under the Public Service Commission or Civil Service. And so when I saw this, I said this is wrong.”

Further investigations revealed that although these employees had appointment letters, their payments were classified as allowances rather than salaries.

“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.

The NEIP boss emphasized the tax implications of this arrangement, stressing that employees receiving allowances were not subjected to the same tax obligations as salaried workers.

“Every salary worker pays withholding tax. Because they were paid as allowance, they weren't paying tax to the government,” Adjei stated.

NEIP Responds with Staff Suspension Amid Legal Scrutiny

In response to these discoveries, the NEIP has suspended staff members while management works to address the legal and administrative challenges surrounding employment formalization.

In a statement, the organization explained that legal restrictions prevent the use of operational funds for staff payments under the current circumstances.

“The legal implications surrounding employment issues prevent the use of operational resources for staff payments,” the notice stated.

The suspension, which took effect on Monday, 24th February 2025, directs all staff to refrain from reporting to work until further notice. Management has indicated that only staff whose services are deemed essential may be recalled once the situation is resolved.

“Once these issues are adequately addressed, management may recall specific staff members whose services are deemed necessary,” the statement added.

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

The NEIP has expressed gratitude to staff for their understanding and cooperation as the organization works to resolve the matter.