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Friday, May 23, 2025

Govt Breaches Local Governance Act – Minority

Frank Annoh-Dompreh

 

The Minority in Parliament has accused the Mahama-led administration of gross violations of the Local Governance Act, 2016 (Act 936), following the government’s failure to release statutory funds due to Metropolitan, Municipal, and District Assemblies (MMDAs) nearly six months into the fiscal year.

The Minority Chief Whip, Frank Annoh-Dompreh, has accordingly expressed deep concern over what he described as the government’s “deliberate breach” of its statutory obligations, warning that the situation is jeopardising local governance and crippling development at the grassroots level.

Speaking at a press briefing in Parliament yesterday, Mr. Annoh-Dompreh said, “This administration stands in clear breach of Act 936 of the Local Governance Act. Not a single pesewa of the District Assemblies Common Fund (DACF) has been disbursed since the year began, despite a clear allocation of GH¢7.51 billion stated in the 2025 budget.”

Quoting page 72 of the 2025 Budget, the Member of Parliament (MP) for Nsawam-Adoagyiri pointed to item 388, which confirms the approved allocation, stating, “Yet, nearly six months into the year, not even a penny has been paid. This is not only illegal but also in direct violation of a court ruling which stipulates that the DACF must be disbursed quarterly.”

Beyond the DACF, the Minority revealed that other key statutory funds have also been withheld, including the National Health Insurance Fund (NHIF) and the Ghana Education Trust Fund (GETFund).

“The NHIF, with an allocation of GH¢9.92 billion, has not received any disbursement. GETFund, allocated GH¢4.1 billion, is also yet to see a single release,” Mr. Annoh-Dompreh stated.

The MP expressed frustration that despite the introduction and increase of several revenue-generating taxes, including the Growth and Sustainability Levy – raised from 1% to 3% – the government has failed to make the corresponding payments into these legally mandated funds.

“We are collecting more in taxes, yet the government is failing to meet its most basic statutory obligations. It raises the question: where is the money?” he quizzed.

The Minority Chief Whip further criticised any claims that delays in appointing or confirming Metropolitan, Municipal, and District Chief Executives (MMDCEs) were behind the situation.

“Even in the absence of confirmed MMDCEs, coordinating directors and regional ministers are legally empowered to act. That excuse doesn’t hold,” he insisted.

The MP lamented the operational paralysis now faced by many assemblies across the country, intimating, “Assemblies are being denied the financial oxygen they need to function. Development projects are stalled. Workers are demoralised. Local governance is under siege.”

He noted that the newly appointed Common Fund Administrator is currently idle, with no resources to distribute. “We’ve spoken with the Common Fund Administrator. He is simply sitting in his office, unable to perform his duties because the funds haven’t been released,” Mr. Annoh-Dompreh asserted.

The MP emphasised that this trend represents a dangerous precedent, especially coming from a government that once criticised similar delays while in opposition.

“Ironically, when they were not in power, they were vocal about delays in DACF payments. Today, they are doing worse,” he said.

He added that the Minority had supported the passage of the 2025 Budget in good faith, participating in the laying of over 40 motions, but now feels betrayed by the government’s failure to implement its own fiscal promises.

“We supported the budget process because of our patriotic duty. But now, something deeply worrying is creeping into our governance system—an intentional disregard for statutory commitments,” he stated.

With Parliament set to resume next week, the Minority is demanding that the Finance Minister appears before the House to provide a full explanation for the delay and a definitive timeline for releasing the funds.

“This is not about politics. This is about the law. This is about the welfare of our people. If these funds are not released immediately, we will explore all options available to us, including legal and parliamentary actions,” he concluded.

By Ernest Kofi Adu, Parliament House

 

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