The Ghanaian Ministry of Finance (MoF) has expressed serious concern to the Administrator of the District Assemblies Common Fund (DACF) over the protracted delay in transferring over \bm{\text{GHS}181.8} million meant for Metropolitan, Municipal, and District Assemblies (MMDAs). The funds, which include a \bm{\text{GHS}170.1} million allocation for MMDAs’ sub-consolidated accounts and \bm{\text{GHS}11.7} million for the DPAT Secretariat, are part of the District Assemblies Common Fund – Responsiveness Factor Grant (DACF-RFG) for the implementation of the District Performance Assessment Tool (DPAT) VI activities in 2023.
The MoF, referencing a December 12, 2023, request from the Ministry of Local Government, Decentralisation and Rural Development (MLGDRD), noted that the funds have not yet reached the beneficiaries, a situation which is hindering the progress of work and effective operations of the MMDAs.
This continuous delay is proving detrimental to Ghana’s decentralisation agenda and is now actively threatening current and future support from Development Partners (DPs). The Ministry highlighted that the transfer of all funds from the previous DPAT cycle is a prerequisite for DPs to commit new financing. A stark consequence of the non-transfer is the Swiss Government’s reluctance to execute a new grant financing agreement of CHF 22 million, CHF 6 million of which is intended for DPAT VII activities in 2024. This reluctance stems from the fact that a CHF 4 million disbursement made by the Swiss Government in December 2022, along with the corresponding Government of Ghana contribution for DPAT VI, has not yet been transferred to the MMDAs.
The Ministry of Finance warned that this failure to disburse funds calls into question the government’s commitment to signed bilateral cooperation agreements. The MoF stated that Ghana, currently navigating an IMF programme for fiscal consolidation and economic recovery, cannot afford to lose such potential grant funds intended to support local economic development.
Ruth Abla ADJORLOLO
