The Public Financial Management Network (PFM Network), a network of 49 CSOs across the country committed to responsible and efficient use, safeguard and transparency in public funds welcomes the budget statement read by the Honorable Minister of Finance.

The PFM Network is worried about inadequate action to deal with financial irregularities at the district level. The Budget statement under the Ministry of Local Government and Rural Development did not see any rigorous steps being outlined to deal with financial irregularities in the management of District Assemblies common fund and other statutory funds.

It will be recalled that in 2016 the Auditor General reported that some officials of the Assemblies mismanaged funds and resources to a financial value of approximately GH¢70,173.645.97 and again GH¢40.93 million in 2017. The total, amounting to over GH¢110 million is enough to finance activities in 2019 under 1D1F and Ghana Asset Management Company, given their GH¢95,000,000 and GH¢3,800,000 allocation respectively.

Taking inspiration from the implementation of a Performance Based Grant System (PBGS) known as the District Development Facility (DDF) in 2008, District Assemblies were assessed on indicators using the Functional Organizational Assessment Tool (FOAT). Assemblies that performed satisfactorily were financially rewarded to implement their Medium-Term Development Plans (MTDPs) and Annual Action Plans (AAPs) which contributed to the advancement of the socio economic development of citizens.

The FOAT, which has now transitioned into District Assemblies’ Performance Assessment Tool (DPAT) must be used during a budgetary season like this to “bite” Assemblies who have mismanaged financial resources in the year preceding the budget reading.

PFM Network believes that any serious attempt to discourage corrupt behavior must start from the critical stage as the Budget Allocation.

It is our hope that by the time the appropriation bill is ready the Finance Minister would be taking measures like our proposal to withhold allocation to MMDAs cited for financial irregularities in the 2016-2017 Auditor General’s Report to fine tune the budget.

We are confident that when such a rigorous measure like this is taken, duty bearers of MMDAs would quickly take steps to resolve financial mismanagement practices within their jurisdiction.

Salifu Freeman Kanton

(SIGNED)

Policy Analyst