Benjamin Komla Kpodo, the Deputy Ranking Member on the Local Government Committee of Parliament, has accused the government of owing the District Assemblies Common Fund (DACF) an amount exceeding GH¢6 billion. He attributed this debt to delays by the Ministry of Finance in releasing funds to the DACF.
Kpodo emphasized that the Finance Ministry’s failure to disburse the common fund on a quarterly basis violates the Constitution. He raised these concerns during a parliamentary session discussing the proposed formula for distributing the DACF for the year 2024.
“The Ministry of Finance has been violating the Constitution. Article 252(2) clearly states that the disbursement should be done on a quarterly basis, which they were not doing. As we speak now, the Common Fund is owed some GH¢3.5 billion over the past two years.”
He said in 2023, the debt had risen by another GH¢3 billion, adding “so, I don’t know where the Ministry of Finance is keeping the money meant for the District Assemblies Common Fund.”
The DACF plays a crucial role in supporting local governance and development projects at the district level. However, the delay in releasing funds has reportedly created financial challenges for district assemblies, hindering their ability to carry out essential services and projects.
Kpodo’s allegations highlight the importance of timely disbursement of funds to local governments to ensure effective service delivery and development at the grassroots level.
In response, Deputy Finance Minister Abena Osei-Asare affirmed the government’s commitment to settling the arrears.
“I want to clarify that we do owe the Common Fund some arrears, and we are diligently working to ensure that these funds are paid. However, I want to emphasize that we have not violated the Supreme Court’s ruling, and I want to make that clear.
“We have appeared before the Finance Committee to explain the methodology used in determining revenue figures for the DACF. Therefore, we are in compliance with the Supreme Court’s ruling.
“Nevertheless, I want to reassure the House that we are dedicated to collaborating to clear any outstanding debts owed to the DACF,” she stated.
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