Alex Emmanuel Nti a financial engineer and an economist has warned that the delay in payment of the common fund to the various district Assemblies by the government will devalue the money when paid.
Speaking on Plan B FM’s afternoon current affairs show dubbed EBAANOSEN, the economist stressed that looking at the rate prices of goods and services are increased in the country recently will not help the District Assemblies to have value for money when disbursed.
“How much was a bag of cement and iron rods last six months, so if an Assembly wants to construct a CHP Compound or a classroom block for a community and you delay the payment of the Fund to the Assemblies to be released to the construction firm, it will affect the company’s plans and working time which will eventually lead to shoddy work” he added.
Earlier this week the minority in parliament threatened to boycott businesses brought to the House by the Ministry for Finance if funds allocated to the District Assembly Common Fund (DACF) are not paid with immediate effect.
Speaking to the media on Tuesday, March 28, 2023, the minority bemoaned the delay in the release of the statutory funds describing it as a clear breach of the law.
“They are already in breach of the delivery in terms of when they are supposed to get this done. By the end of 2018, whatever you have collected in tax revenue should have been fully paid to Common Fund in terms of the 5%, so we can only say immediately because you are already in breach of the law. That is why we are saying that if he refuses, we will not do any business from the Ministry of Finance,” MP for Adaklu, Kwame Governs Agbodza said.
The District Assembly Common Fund is established by the District Assembly Common Fund Act 1993, (Act 455) under Article 242. The purpose of setting up this fund is to provide resources to support the developmental activities of the local government. It is a fund created out of the Consolidated Fund to channel resources from the central government to the local governments for development.
The District Assemblies Common Fund (DACF) is a pool of resources created under section 252 of the 1992 constitution of Ghana. It is a minimum of 5% of the national revenue set aside to be shared among all District Assemblies in Ghana with a formula approved by Parliament. It is a Development Fund that enables the use of the nation’s wealth throughout Ghana to the benefit of all citizens.
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