NEIP management clarifies suspension of entire staff

The National Entrepreneurship and Innovation Programme (NEIP) has temporarily suspended some of its staff due to irregularities in their employment and compensation. Management clarified that the suspension is not a dismissal but a necessary step to ensure compliance with public financial regulations and prevent further legal violations.

According to NEIP, as of December 2024, there were 32 staff members at the organization who were not designated as presidential staffers. However, in January 2025, 12 of these employees left without formally notifying leadership, having become aware of the irregularities surrounding their appointments. Investigations revealed that their employment letters did not specify salary levels or grades, creating ambiguity in their compensation packages. Instead of receiving structured salaries, the affected staff members were paid allowances, a practice that violates Ghana’s labour laws.

NEIP also disclosed that there were no budgetary provisions for staff salaries. Consequently, the previous management resorted to using operational funds to pay these allowances, a move that contravenes the Public Financial Management Act. In addition, for the past six years, the previous administration failed to pay SSNIT contributions for the affected staff, constituting a serious legal breach.

In an effort to rectify these financial and legal infractions, the current management has initiated steps to obtain financial clearance and integrate staff into the government payroll system. However, the complexity of the issues has made the resolution process challenging. To avoid perpetuating these irregularities, NEIP decided to temporarily suspend the staff while working towards a permanent solution.

Management emphasized that this decision was not a dismissal but a corrective measure to ensure compliance with financial regulations and proper employment practices.