The Legislative Instruments seeing to their creation are yet to mature, thus the proposed districts are not yet to be recognized on government books to receive budgetary allocations by way of seed money.

[contextly_sidebar id=”NJ9TbN68VZsQU8srGzyCwSFflRv4LTcd”]”The fact is that, you can’t even say anything for the new districts. The same parliament will ask: where are the districts? We have not approved any districts. So until the LIs mature, you cannot ask for any money for any district,”  the Minister for Local Government and Rural Development, Hajia Alima Mahama noted to Citi News.

However, Hajia Mahama explained to Citi News that the new districts, when formally recognized, will draw funding from the District Assemblies Common Fund to start their activities.

“We will stake seed money from the District Assembly Fund to start the districts. So we explained to the committee that we cannot budget for districts because they are not yet there. The LI is not yet in place. The formula [for the allocation] will come before Parliament, so we will meet with the economic management committee, and put it in the formula, and the formula will come to parliament for approval.”

The Akufo-Addo government presented the LI for the creation of 38 new districts and municipal assemblies to Parliament in November.

The LI is to mature in 21 sitting days from Thursday, November 16, 2017, when it was laid.

The government is hopeful that the creation of these new districts will deepen Ghana’s democratic processes and boost the decentralization system.

Speaking to journalists after presenting the LI, Hajia Alima Mahama, said: “We’ve decided that we need to deepen our democratic process and decentralization system. There are some districts that have grown. We started district assemblies in 1988, the population of some of the district assemblies have even doubled. And the essence of our local governance system is to ensure that all persons in the district participate in the governance system and feel part of it. So we’ve decided to increase the number of districts, the districts that are big, divide them into other districts,” she added.

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By: Duke Mensah Opoku & Delali Adogla-Bessa/citifmonline.com/Ghana

The post 2018 budget won’t cater for new districts – Minister appeared first on Citi 97.3 FM - Relevant Radio. Always.

Out of a total of GHc 33,392,496.94 released to the assemblies in the Greater Accra Region in 2016, GHc 1,589,612.14, representing 4.76% was not properly accounted for according to the report.

iWatch Africa’s assessment of the Auditor General’s report also revealed that, out of a total GHc 352,286,432.22 allotted to all 216 Assemblies, GHc 70,173,645.97, representing 19.92% was not properly accounted for.

Assemblies in the Volta Region mismanaged most of the funds that were allotted them.

Out of a total of GHc 39,846,537.39 released to the twelve Assemblies in the Volta Region in 2016, GHc 13,428,234.45, representing 33%, was not properly accounted for.

This finding is alarming, especially as the current administration expects 85% of local government budget for 2017 to be funded by donors.

Below is an infographic report:

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Source: iWatch Africa

The post Regional Ranking: How MMDAs mismanaged Common Fund cash [Infographic] appeared first on Citi 97.3 FM - Relevant Radio. Always.

“…instead of a lean government, we have lean kenkey at a higher price, these are the issues which the….government and its activists should be tackling instead of seeking to divert attention with threats, intimidation, assaults, car-snatching, seizure of lorry parks and toilet grabbing”. Nana Addo Dankwa Akufo-Addo, May 2009.

The above statement from Nana Akuffo Addo was made after John Atta Mills, the then President, was accused of appointing a bloated government of 74 Ministers in2009.

On March 15, 2015. Daily Guide, Communication Director of NPP, Nana Akomea, accused John Mahama of illogical appointments after his total ministerial appointment was 85 Ministers.
He categorically stated,“….it is intriguing that a social democratic party like the National Democratic Congress(NDC) has abandoned its ‘lean government’ promise in the wake of the socio-economic crisis in the country………..what Ghana needs is institutional reforms and not illogical ministerial appointments.”

The New Patriotic Party, NPP led by Nana Akuffo Addo, in opposition, ridiculed NDC government under Mills and Mahama on the size of their government. They vehemently argued that, the ‘bloated’ NDC government was a waste of Ghana’s public purse.

So on January 7, 2017, as contained in his inaugural address, President Akuffo Addo vowed to protect the public purse during his administration.According to him, public service is not an avenue for politicians to milk the state adding that he will ensure value for money.

Moreover, few weeks after President Nana Akufo-Addo touted the prospects of the country’s economy that the National Democratic Congress(NDC) had left for the current government to manage, the President has made a sharp U-turn on his State of the Nation’s Address saying Ghana’s “economy is in bad shape.”

Where is the lean Cow?

Ghanaians believed the President, hoping that for the first time in the political history of Ghana, Ghanaians shall experience a very “leaned” government like that of a Somalian cow. Some experts even touted the ability of Nana Akuffo Addo in the possibility of creating less than 23 Ministries to efficiently run Ghana’s economy. After all, Ghana’s public purse is in bad shape and must be protected.
The first full list of ministers of the NPP government defied all projections of governance and political experts.

Eventually, Ghana our beloved country through a political In Vitro fertilization is pregnant with 110 (one hundred and ten) political cocktails of ministers. When you add one Special Assistant each plus 50 spokespersons, the real size of NPP government will be 270 appointees. This is beyond a bloated government: it is an obesity of a government.

Even the political neutrals are dumbfounded and confounded with this In Vitro pregnancy of a government. However, the chief linguist, Hamid Mustapha, assured us that they never promised a lean government. The question is, did they also promise Ghanaians an obese (Obolo) government? Does it not hold to reason that if you continue to ridicule your neighbour for marrying an obese woman, it is naturally obligated and expected of you to introduce your lean wife to your neighbours?

Mustapha Hamid further stated in his press conference held on the March 15, 2017, that, the economy is so bad that the only way Ghana can be run efficiently is to impregnate government with a 110 ducklings that will waddle and ‘duckle’ with Ghana’s public purse ‘perficiently’.

The point is, a Lean Government refers to “the application of lean production or principles and methods to both identify and then implement the most efficient, value added way to provide government services.”

So, where on earth can you equate obesity to efficiency apart from more ‘efficient’ hands being dipped into the public purse?

Kwaku Anase’s GHC1.56 Billion Cash Cow to the Office of Government Machinery (The Presidency)

The NPP, led by Nana Akuffo Addo, during his campaign told Ghanaians that one district one dam, one district one factory, will be private sector led. In other words, the NPP has lined up private investors that will move into the districts to begin the industrial revolution of Ghana. This posture was defended by the Minister of Finance, Ken Ofori Atta, during his vetting by the Appointment Committee where he reiterated that these initiatives shall not be funded by government money.

However, after an alarm was raised concerning the GHC1.56 billion budget allocation for 2017 to the Presidency, the largest in the history of Ghana, the song to the funding of these projects changed. I heard Kwaku Kwarteng protesting that a billion of this money is meant for the these initiatives. So, where are the private investors that will carry the machines to go and dig the dams for the farmers to fetch to water their crops? Or the Agotime-Kpetoe Kete(Kente) investors that are ready to invest in Kpetoe? Have they been ferried away by Korle Lagoon flood? Or the GHC1.00 billion shall be used for conferencing and trekking to the offices of the private sector businesses by the presidential initiatives ministers?

In addition to this, the 7.5% Common Fund allocation meant for the development of Local Assemblies has been reduced to 5%. The difference is the amount forwarded to the Presidency to confuse Ghanaians that the government has raised additional money to support the District Assembly Common Fund which is already legally theirs.

This strategy is an epitome of a Kwaku Ananse story. Ananse, after roasting four fingers of plantain, distributed each to his four sons. He later on asked each of his sons to share half of his plantain with him. That’s how Ghana’s public purse is being protected.

Indeed, the obesity of a lean public purse.

Shalom

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By: Kofi B. Kukubor

The post The obesity of a lean public purse [Article] appeared first on Citi 97.3 FM - Relevant Radio. Always.

Per the constitution, not less than 5 percent of national revenue is to be allocated to the Common Fund for disbursement to various assemblies, but over the years, payments delay, thus affecting development at the local level.

[contextly_sidebar id=”mrLrZeHzIXce5QXGWLWXRS43it1hH6C6″]Appearing before the Appointments Committee of Parliament on Tuesday, Irene Naa Toshie Addo said a combination of extensive lobbying and borrowing from banks to fill the gap can deal with the problem.

Naa Torshie said, she will lobby “the Finance Minister and keep on pushing…and I’m going to involve Parliament—Finance, committee, local government committee, leadership.”

“I will be knocking on your doors; you have to help, if given the nod, to make sure the money comes in and the right amount comes in. That is very important… If I’m given the nod, once we have the power to be able to invest some of the money to be able to accrue some interest, I’m looking at, with the permission of my minister, bringing certain proposals like this to Parliament to find out whether or not in certain circumstances, just to keep the timelines so that there is no disappointments so that they can plan and manage their areas…I’m thinking about innovative things like that, maybe being allowed at certain times to borrow money for them and pay when the fund comes in,” she added.

Naa Torshie Addo also stated that, the government’s one million dollar per constituency programme, could affect the formula for the distribution of the Common Fund.

“…Directly, it will not affect the formula but as time goes on, it could affect the formula. When you look at basic needs, the districts that have more schools and hospitals are given less, while those who have less are given more. So with the coming in of this money, if people build more schools, hospitals, among others, they get less of the DACF. But that is not to say that they should build more schools. It could affect it in the long-term.”

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By: Duke Mensah Opoku/citifmonline.com/Ghana

The post Naa Torshie advocates borrowing by MMDAs from local banks appeared first on Citi 97.3 FM - Relevant Radio. Always.

This was contained in a letter addressed to the Speaker of Parliament, Prof. Aaron Mike Oquaye, to get her approved through the due parliamentary procedure.

Naa Torshie Addo, if approved, will replace Kojo Fynn, the former administrator who was relieved of his post by President Akufo-Addo earlier this year.

The District Assemblies’ Common Fund is a pool of resources created under Article 252 of the 1992 constitution of Ghana. The pool is provided with at least 5% of the national revenue, set aside to be shared among all District Assemblies in Ghana with a formula approved by Parliament.

Although the constitution does not state explicitly that allocations from the fund be made to MPs or regional coordinating councils, the country currently allocates a fraction of the fund to MPs and Regional Coordinating Councils.

Meanwhile, the Speaker of Parliament has referred the nomination to the Appointments Committee for consideration and a report to be issued later.

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By: Jonas Nyabor/citifmonline.com/Ghana

The post Naa Torshie Addo appointed as Common Fund administrator appeared first on Citi 97.3 FM - Relevant Radio. Always.

The government in its 2017 budget statement and economic policy indicated that it will cap all statutory funds at 25% to finance the one-district-one-factory and free SHS policies.

[contextly_sidebar id=”Qyp9kIdy8q7sXhEVADJn3wmKi9j4zNko”]This means that  7.5% of all total revenue of the country that goes to the District Assemblies Common Fund (DACF) will be slashed down to 5% if this is implemented.

But Cassiel Ato Forson believes 25% cap on statutory funds such as the District Assembly Common Fund would affect the release of funds to contractors handling various projects.

This he said would result in an increase in non-performing loans in the banking sector.

Speaking to Citi News, the Ajumako Enyan Essiam lawmaker said government should have consulted widely before reaching its decision.

“…If care is not taken we will see a new scenario where the banks are seeing a lot of government contractors not getting paid and therefore they are not servicing their debt. There is a likelihood that we are going to see a lot of non performing loans in the banking sector. ..that is why I said it was prudent for them to have engaged them and agreed on the moratorium…so they can have the revenue  and then use it to service those things because the impact on the economy might be very dangerous.. “

Reducing statutory fund allocations will slow dev’t – Avedzi 

Before the budget presentation, the Deputy Minority Leader in Parliament, James Klutse Avedzi, had kicked against the possible review of the law to reduce the allocation of statutory funds.

Mr. Avedzi had argued that, a likely downward review of allocations as they have gathered, would negatively impact development.

Mr. Avedzi, as an example, explained that “if you want to reduce the Assembly common fund from 7.5 percent to 5 percent, what it means is that about one-third of what is going to the assembly will no longer go there. So if the Assembly had 1.5 million, this assembly will only receive 1 million.”

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By: Marian Ansah/citifmonline.com/Ghana
Follow @EfeAnsah

The post Capping statutory funds will affect banking sector – Ato Forson appeared first on Citi 97.3 FM - Relevant Radio. Always.