Electronic Salary Payment Voucher System and the Prevention of Payroll Fraud in Ghana: a Study of the Controller and Accountant General Department

Abstract

A plethora of payroll fraud activities have bedeviled Ghana’s public sector over the years. This led to the introduction of innovative and technology driven mechanisms to curb the incidence of payroll fraud in the public sector by the Controller and Accountant General Department (CAGD). This study thus examined the effect of electronic salary payment voucher system on the prevention of payroll fraud in the Ghanaian public sector. The study specifically sought to evaluate the effect of biometric identification number, bank verification number and electronic transfer system on the prevention of payroll fraud. The study adopted a quantitative method and a survey design to carry out the study. A sample of two hundred and seventy (270) respondents using a quota sampling technique were used in the study by administering questionnaires. The study found that electronic systems of payment – biometric identification and bank verification numbers and electronic transfer system – are not statistically significant to the prevention of payroll fraud in Ghana. The study recommends that government agencies and bodies expedite action on the adoption of electronic payment voucher systems in the remuneration of workforce.