Over 100 MMDAs owe Ghc9.4b in unpaid retention amount

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The executive summary of the Auditor General’s report for the year ending December 31, 2015 has revealed that some 116 Metropolitan, Municipal and District Assemblies (MMDAs) out of 201 owe a total of Ghc 9,428,730.92 as at the end of 2015.

The bulk of the Assemblies’ debts were deposits made to the Assemblies and unpaid retention amount.

According to the report, the Coordinating Directors of  Sefwi Akontonmbra and Suaman Assemblies and their finance officers willfully diverted Ghc 150,981.00 lands revenue into private bank accounts.

In view of this, the Auditor general has recommended that, managements should report the matter to the police for the necessary actions to be taken to revive the stolen monies.

Total Income 2015

About 201 MMDAs out of the 216 in 2015 accrued a total income of Ghc 1,228,259, 398.30, the income sources remained unchanged and comprises of internally generated revenues and external inflows.

The internally generated funds accounted for 17.9% of the incomes on the average amounting to Ghc 219,769,349.4, while the external inflows were district Assemblies common fund allocations, government grants for salary payments accounted to budgetary support to decentralised department, and grants from Ghana’s development partners.

Internal Generated Funds

The IGF collections continued to decline across board mainly because management did not involve their finance and administration subcommittees to review rates to be paid as well as devise effective measures for collecting unpaid revenue.

The AG has said that, the general weaknesses in accounting for value books and revenue collected also contributed to the low record of IGF collections.

Operational Result

A total expenditure of the 201 Assemblies amounted to Ghc 1,095,075,584.65 as against a total income of the Ghc 1,228,269,398.30 as a result, a net surplus of Ghc 133,183,813.65 was recorded.

Some 18 Assemblies however recorded a total deficit of Ghc 8,640,697.91 in their operations.

Assets

The assets of the MMDAs comprise of cash resources with the banks, investments in shares and interest bearing banking products in financial institutions and unredeemed loans granted under the poverty alleviation funds as well as uncovered advances with staff of the Assemblies.

The total bank balance of the 201 Assemblies as at 31 December 2015 was Ghc 277,568,523.80 with none of the Assemblies ending the year with net overdrawn bank balance. The bulk of the bank balances were held by the metropolitan and municipal Assemblies.

Liabilities

116 of the 201 Assemblies owed a total of Ghc 9,428,730.92 as at the end of the year in review. The bulk of the Assemblies’ debts were deposits made to the Assemblies and unpaid retention amount.

Source: Emmanuel Kwaku Ansah

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