Rejoinder: PAC raises red flag over LEAP Mobile Money mode

Our attention has been drawn to a publication on your network “www.myjoyonline.com” on Thursday, 21st January, 2016, which was captioned ‘PAC raises red flag over LEAP Mobile Money Mode’.

In the said publication, the Chairman of the Public Accounts Committee (PAC) of parliament, Hon. Kwaku Agyemang Manu expressed concern that the adoption of mobile money mode of cash transfer to the beneficiaries of the Livelihood Empowerment Against Poverty (LEAP) Programme by the Ministry of Gender Children and Social Protection (MoGCSP) may encounter accountability challenges.

We wish to state that electronic payment mechanisms including mobile money mode have comprehensive audit trails for all such transactions. The audit trail of transaction addresses issues of accountability.

With specific reference to mobile money, we wish to draw the Chairman’s attention to the fact that, every single mobile money transaction is traceable and recorded. Mobile money transactions involve two fundamental processes: sending of funds through e-money and receiving of funds by the recipients. The sending of funds by mobile money is done by transfer of funds from the Ministry’s bank accounts to the mobile money trust account of the mobile money organisation. From the mobile money trust account, the funds are converted to electronic funds in favour of the Ministry’s mobile money wallet. From the Ministry’s mobile money wallet, each beneficiary household’s wallet is credited.

These transactions are linked to the banking system through the trust account of the mobile money organisation and are therefore recorded and traceable, thus enabling accountability and traceability. The cash out transactions of beneficiaries from agents are also system recorded and traceable.

The Ministry used the mobile money mode of MTN, the Point of Sale (PoS) mode of Aya Technologies, and the E-zwich platform of GhIPSS to deliver LEAP grants to beneficiaries during the e-payment piloting process. The piloting is over, and after a competitive tendering process, the GhIPSS has been selected and contracted as the main payment service provider for the LEAP programme. GhIPSS is expected to be using the E-zwich platform to deliver cash to all LEAP beneficiaries by April 2016.

The E-zwich platform of GhIPSS uses biometric fingerprint system of verifying beneficiaries before cash payment is made to them. This system is linked to the banking system, ensuring that every transaction is recorded and traceable.

Aside the security that comes with the E-zwich system, it also ensures that the extremely poor beneficiaries who hitherto were financially excluded become included in the financial system of the country.

Finally, we wish to state that, there is no system that better assures transparency, security, accountability, and robustness than an e-payment system with biometric means of validating recipient of cash.

We hope that this rejoinder would be given the same publicity it deserves just as the statement from the PAC Chairman.

Issued by the LEAP Programme
Department of Social Development
Ministry of Gender, Children and Social Protection (MoGCSP)


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