Government entity, National Identification Authority, suspends financial transactions with Ghana Revenue Authority, citing an outstanding debt of approximately GHC376 million.
The National Identification Authority (NIA) has disconnected the Ghana Revenue Authority (GRA) from its Identity Verification Service (IVS) platform, effective August 5, 2023. This move comes as a result of the GRA's failure to settle an outstanding debt of over GH¢376 million, despite numerous attempts and reminders from the NIA [1][2].
The IVS platform is a critical national infrastructure, used by both public and private sectors for identity authentication via the Ghana Card database. The disconnection could disrupt operations, particularly affecting tax compliance processes and activities such as customs clearance at ports, potentially causing delays and inconvenience for importers and exporters [1][2].
According to the NIA, the GRA has been unauthorizedly accessing its database through the Ghana Revenue Authority, a violation of existing data laws. This unauthorized access could potentially exacerbate the problem of the debt owed by GRA to NIA [1][2].
The GRA, however, denies owing the claimed debt, describing it as a "legacy debt" predating 2023 without proper regulatory approval. The GRA also highlighted that NIA operations at GRA offices had been carried out without rent or utility payments, and they are currently involved in high-level discussions with the NIA to resolve these procedural issues [3].
The situation highlights gaps in inter-agency accountability and could strain inter-agency cooperation between key government bodies, potentially slowing the progress of integrating national identity data into government service delivery.
The IVS platform enables real-time identity verification using the Ghana Card. Institutions such as the Electricity Company of Ghana (ECG), the Lands Commission, and fintech companies rely on this service for their operations. The disconnection could, therefore, cause operational challenges in these sectors, causing inconvenience and potential economic impacts [1][2].
As of the article's publication, the Ghana Revenue Authority has yet to publicly respond to the disconnection. The NIA, in its call for swift government intervention, aims to ensure the continuity and sustainability of its systems, emphasizing the importance of the IVS platform for national operations [1][2].
[1] Myjoyonline.com, 2023. NIA disconnects GRA from IVS platform over GH¢376m debt. [Online] Available at: https://www.myjoyonline.com/news/2023/august-5th/nia-disconnects-gra-from-ivs-platform-over-ghc376m-debt.php
[2] Graphic Online, 2023. NIA disconnects GRA from IVS platform over unpaid debt. [Online] Available at: https://www.graphic.com.gh/news/general-news/nia-disconnects-gra-from-ivs-platform-over-unpaid-debt.html
[3] Citinewsroom.com, 2023. GRA denies owing NIA GH¢376m debt; describes it as 'legacy debt'. [Online] Available at: https://www.citinewsroom.com/2023/08/06/gra-denies-owing-nia-ghc376m-debt-describes-it-as-legacy-debt/
The financial implications of the Ghana Revenue Authority's (GRA) disconnection from the National Identification Authority's (NIA) Identity Verification Service (IVS) platform could affect various business activities, such as customs clearance at ports, which may lead to delays and inconvenience for importers and exporters. The ongoing dispute between the two authorities also has potential implications for the broader political landscape, as it highlights gaps in inter-agency accountability and could strain relationships between key government bodies.
The GRA's unauthorized access to the NIA's database, as allegedly reported, could have significant repercussions for the general-news sector, including data privacy concerns and potential breaches of existing data laws. This issue, combined with the debt dispute between the authorities, underscores the importance of transparent financial and data management practices within the Ghanaian government.
