The government is facing criticism over its alleged failure to disburse over GH¢6.5 billion owed to the District Assemblies Common Fund, as revealed by Benjamin Kpodo, Ho Central Member of Parliament.
The MP, who is also the Deputy Ranking Member of the Local Government Committee of Parliament, highlighted that the Ministry of Finance’s delay in releasing funds, in violation of constitutional mandates for quarterly disbursements, has left the Common Fund significantly underfunded.
Speaking in Parliament during discussions on the proposed DACF distribution formula for 2024, Mr Kpodo stressed the urgent need for the government to fulfil its financial obligations to local authorities.
“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 being owed some GH¢3.5 billion over the past two years”, Mr Kpodo said.
“For 2023, the debt has again risen by another GH¢3 billion. So, I don’t know where the Ministry of Finance is keeping the money meant for the District Assemblies Common Fund,” he added.
In response, outgoing Deputy Finance Minister Abena Osei-Asare acknowledged the arrears owed to the Common Fund and pledged the government’s commitment to resolving the outstanding debt.
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