In Two Years Ghana loses GH2.7M In Revenue
A research conducted by First News, has revealed that persistent contract irregularities has led the Metropolitan and Municipal Assemblies (MMDAs) in Greater Accra to suffer revenue losses of over GH?2.7 million.
The report which examined the degree of transparency and accountability in the disbursement and utilisation of the District Assembly Common Fund in 2023, uncovered losses in taxes, cash transactions and contract irregularities.
The assemblies did not comply with financial management standards, procedural and administrative blunders and lack of relevant training for the staff of the assemblies.
It said cash irregularities in the Adenta Municipal was GH?1,206,400, while Ashiaman Municipal hit GH?1,152,931 and Dangbe West was GH?71,203 with Dangme East at GH?35,916.84.
Contract irregularities resulted in revenue loss in Dangme East was GH?40,958.95, with Dangbe West recording GH?192,105.89 and Tema Municipality losing GH?14,738.
On tax irregularities, the study implicated Adenta Municipal to have caused a GH?7,290 revenue loss and Accra Metropolitan Assembly losing GH?3,793.50.
The tax irregularities included withholding taxes, not deducted or remitted, purchases from non-VAT registered entities and payment without VAT invoices as well as failure to collect property rate.
The differences arise from mandatory expenditures incurred on behalf of the Assemblies, by Ministry of Local Government and Rural Development (MLGRD).
The study observed that the District Assembly Common Fund Secretariat, over the years, has been making unsubstantiated and un-receipted deductions.
It said low level of MMDAs? compliance with financial management standards was leading to several irregularities in cash, procurement, contract and tax.
It said unsupported payments, failure to properly account for funds, overdue advances, misappropriation of funds, unvouchered payments, unretired imprests and unpresented payment vouchers constitute cash irregularities.
It said contract irregularities covered overpayment of mobilisation, unapproved variation and failure to tender or unapproved contract.
Others are retention irregularities and contract register irregularities, abandoned projects, non utilised completed projects and Monitoring and Evaluation irregularities.
The study said some MMDAs staff also had low capacity and weak understanding of the financial administration regulations of Assemblies? and the Local Government Act.
It noted that the fund has made significant contributions to human resource and infrastructural development; however, there are challenges with disbursement and utilization which needed to be addressed.
The report, therefore, recommended to MLGRD and the Administrator of the DACF to minimize the level of deductions made from the DACF.
It called on the MLGRD to establish effective monitoring systems to follow up on the recommendations of the Auditor General.
Punitive measures should also be taken against key officials of the Assemblies, who fail to enforce financial standards and regulations, the report said.
The Municipal chief for Sunyani in the Bono Region, Ansu Kumi in an interview said they have introduced an electronic device to help check revenue leakage.
By: Michael Sarpong Mfum
