Premix funds accountability exercise tracks GH¢4.6m
The government has intensified efforts to strengthen accountability and financial oversight within the premix fuel distribution system.
Consequently, an ongoing nationwide Premix Fuel Accountability and Bookkeeping Exercise with Landing Beach Committees (LBCs) has accounted for GH¢4.67 million in the Community Development Fund.
The exercise forms part of broader reforms being implemented to improve transparency, financial discipline and the management of the Community Development Fund, which is derived from 53 per cent of the margins generated from the sale of subsidised premix fuel and earmarked for development projects in fishing communities.
The accountability exercise follows findings from a special audit, instituted by the Ministry of Fisheries and Aquaculture as part of the government’s bid to reflect its ‘Reset Agenda’ for key sectors.
The audit, which covered the period 2016 to 2024, revealed the need for the accountability series after uncovering financial irregularities, unauthorised transactions, weak record-keeping and weaknesses in the management of the Community Development Fund in some communities.
Data compiled by the National Premix Fuel Secretariat show that 167 LBCs have so far been covered under the latest phase of the accountability exercise, with records from 34 committees fully verified.
Out of the amount accounted for by the Landing Beach Committees, GH¢4.18 million represents current payments verified during the exercise, while GH¢486,566.22 represents balances brought forward from previous accounting periods.
Outcomes of the exercise
The Administrator of the National Premix Fuel Secretariat (NPFS), Ebow Mensah, described the exercise as a major intervention aimed at restoring confidence in the management of the Community Development Fund.
“This exercise goes beyond financial reconciliation. It is about promoting transparency, accountability, and responsible stewardship of resources intended to improve the lives of people in fishing communities,” he said.
He said it also provided the Secretariat with a clearer understanding of financial management practices at the community level, while identifying gaps that require corrective action, capacity building and stronger oversight.
Mr Mensah said steps had been taken to prevent a recurrence of the irregularities identified through the audit and the ongoing accountability exercise.
“These include stronger monitoring, improved account verification, bookkeeping support, compliance checks and closer collaboration with Metropolitan, Municipal and District Assemblies (MMDAs),” he added.
The exercise has revealed a number of operational challenges confronting some Landing Beach Committees.
In several districts, records are yet to be fully verified because changes in bank account signatories have delayed access to account statements and affected reconciliation processes.
The monitoring teams also observed that some committees are yet to deposit Community Development Fund proceeds because they are awaiting introductory letters from their respective MMDAs to facilitate the opening of bank accounts.
Additionally, several committee members demonstrated limited understanding of bookkeeping procedures and bank documentation requirements, particularly in relation to bank statements and account reconciliation.
Mr Mensah stated that the findings highlighted the need for continuous training and support to strengthen financial management systems within Landing Beach Committees nationwide.
The Secretariat cautioned all Landing Beach Committees to strictly adhere to L.I. 2233, which governs the operations of the premix fuel distribution system.
It said committees must ensure that all proceeds due to the Community Development Fund were properly deposited, recorded and used only for approved community development purposes.
The Minister of Fisheries and Aquaculture, Emelia Arthur, has consistently emphasised the importance of accountability in the premix fuel distribution system, describing transparency and proper financial management as essential to the development of fishing communities and the sustainability of the fisheries sector.
