‘Seek approval for financial agreements that exceed a year’
The Minister of Finance, Mr Ken Ofori-Atta, has asked metropolitan, municipal and district assemblies (MMDAs) to refrain from entering into agreements that bind them financially for more than one year without the prior approval of the Minister of Local Government and Rural Development.
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Per the directive, the MMDAS must also desist from any such agreement that will put a financial liability on the central government.
In a speech read on his behalf by the Greater Accra Regional Minister, Mr Ishmael Ashitey, at the launch of the Greater Accra Regional Composite Budget for 2018-2021 in Accra, Mr Ofori-Atta explained that the government had a key interest in dealing with inefficiencies and waste in government spending, for which reason the Public Financial Management Act 2016 (Act 921) would be strictly enforced.
The budget hearing was attended by representatives of the Ministry of Finance, MMDAs and some traditional leaders in the region.
Compensation budget
Mr Ofori-Atta also asked both political and administrative leaders at the local level to adhere to the guidelines for recruitment and replacement of staff and the elimination of ‘ghost names’ to help lessen the burden of the compensation budget on the country’s resources.
However, to ensure a credible compensation budget for 2018, he indicated that “the ministry had forwarded templates to all MMDAs to capture compensation-related data”.
He urged them to attach great importance to the request to ensure that the completed templates were submitted to the Fiscal Decentralisation Unit (FDU) for further action by the end of September.
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Revenue mobilisation
On revenue mobilisation, he asked MMDAs to step up their revenue mobilisation strategies to reduce over-dependence on the central government’s revenue transfer.
He said: “The regional coordinating councils will continue to monitor internally-generated revenue activities at the MMDAs.”
The minister stated that MMDAs were allowed to borrow within the country or up to a limit determined by the Finance Minister, in consultation with the Minister of Local Government and Rural Development.
He cautioned that the law permitted sanctions, including jail sentences, on officers who wrongfully or recklessly handled public funds, and urged MMDAs to desist from those activities.
He commented on the refusal of some MMDAs to present part of their internally-generated funds (IGFs) to departments of the assemblies.
“MMDCEs should note that the policy of using at least 20 per cent of total IGF on capital investment is still in force,” Mr Ofori-Atta stated.
Quick Read
The Greater Accra Coordinating Council has launched the 2018-2021 Composite Budget Hearing in Accra.
