Deputy Ranking Member on the Local Government Committee of Parliament, Benjamin Kpodo, has disclosed that the government is indebted to the District Assemblies Common Fund to the tune of over GH¢6 billion due to the delay in the release of funds by the Finance Ministry since the days of Ken Ofori-Atta.
Joseph Osei-Owusu, the First Deputy Speaker of Parliament, indicated that the House, may need to confront the Finance Ministry, if it does not provide clarity on its indebtedness to the District Assembly Common Fund by the conclusion of June 2024.
According to the Ho Central MP, the Ministry of Finance, has violated the Constitution by failing to disburse the statutory Common Fund quarterly.
He made this known in a contribution to the report on the proposed formula for distributing the DACF for the year 2024 in Parliament.
“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.
“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.”
Despite reassurances from Deputy Finance Minister, Abena Osei-Asare, regarding the government’s commitment to settling these arrears, Osei-Owusu, insists on tangible evidence and a reconciliation of financial figures.
Emphasizing the urgency of the situation, Osei-Owusu, demanded a comprehensive report by the end of June.
He stressed the importance of resolving these outstanding arrears promptly to ensure that the financial needs of the assemblies are met efficiently.
“I have listened to the Minister of Finance designate but I want to see evidence and be satisfied that the figures put out by Kpodo and the Ministry of Finance have been reconciled and we can put our hearts to it that these are the exact figures, otherwise, we will have to stand against the Ministry of Finance. Because when it comes to the Common Fund, we must assert our authority as a House.
“So, we are looking forward to a report and I hope that by the end of June, we will have a report and all the arrears will be available and the assemblies will get sufficient funds.”
Abena Osei-Asare, on her part, assured the House of the government’s commitment to settle the arrears.
“I want to put on record that, Mr Speaker, yes, we do owe the Common Fund some arrears, and we are working very hard to make sure we pay those moneys. But I want to also put on record that we haven’t defaulted, or we Headlines haven’t gone against the Supreme Court’s ruling.
“That is a fact and that I should put on the table. We have come to Finance Committee to explain how we arrive at revenue numbers for DACF. So I just want to put that on the table that we haven’t gone against the ruling of the Supreme Court. But I want to assure the House that we will work together to make sure we clear any outstanding that we have with DACF.”
