The Auditor-General’s reports over the past five years show that revenue collectors’ salaries at several metropolitan, municipal and district assemblies (MMDAs) exceeded the amount of internally generated revenue they mobilised during the period under review.
The Daily Graphic’s monitoring of the reports over the past five years found that MMDAs spent GH¢22.4 million on salaries for revenue collectors between 2021 and 2025, while the officers generated only GH¢10.26 million from property rates, fees, licences and other revenue components.
The reports on the Accounts of District Assemblies showed that in many instances, individual revenue collectors earned annual salaries of between GH¢50,000 and GH¢90,000, but mobilised only GH¢6,000 to GH¢40,000 in revenue, exposing significant inefficiencies in revenue collection.
The practice, which contravenes Section 52 of the Public Financial Management Act, 2016 (Act 921), undermines value for money in the use of public funds and results in avoidable financial losses for the assemblies.
Despite repeated warnings and recommendations by the Auditor-General to address persistent inefficiencies in revenue mobilisation, the desired impact has remained disappointingly limited over the past five years.
Many of the affected MMDAs have continued to retain revenue collectors whose salaries exceed the amount of revenue they generate, despite repeated audit recommendations to address the anomaly.
Affected assemblies
The identified assemblies included Asunafo South, Berekum, Dormaa Central, Berekum West, Dormaa West, Talensi, Builsa South, Jomoro, Adansi Asokwa, Asokore Mampong, Kumasi Metropolitan Assembly (Manhyia South Sub-Metro), Sekyere Central, Dormaa East, Banda, Nkoranza South, Pru West, Bodi, Mampong, Kwadaso, Atwima Kwanwoma, Kumasi Metropolitan Assembly (Subin Sub-Metro), Nhyiaeso Sub-Metro, Upper Denkyira East, Agona West, Abuakwa South, Aowin, Afigya Kwabre South, Ahafo Ano North, and Ahafo Ano South East.
Others were Amansie Central, Bosomtwe, Old Tafo, Suame, Awutu Senya, Twifo Hemang Lower Denkyira, Fanteakwa South, Upper West Akim, Chereponi, Kpandai, Gushegu, Garu, Amenfi West, Sefwi Wiawso, Twifo Atti Morkwa, Assin Fosu, Assin South, Agona East, Asikuma-Odoben-Brakwa, Mfantseman, Ajumako-Enyan-Essiam, Yilo Krobo, and Abuakwa North.
The remaining assemblies were Atiwa West, Ayensuano, Kwahu East, Kassena-Nankana, Bongo, Bawku West, Nabdam, Bibiani-Anhwiaso-Bekwai, Juaboso, Bia East, Sefwi Akontombra, Upper Denkyira West, Abura-Asebu-Kwamankese, Effutu, Nsawam-Adoagyiri, Suhum, Afadzato South, Ketu South, Kpando, Shama, and Suaman.
Analysis of the data showed that in 2021, 163 revenue collectors at 31 assemblies were paid GH¢3.04 million in salaries but mobilised only GH¢1.63 million in revenue, resulting in a shortfall of GH¢1.41 million.
The trend continued in 2022 and 2023, when collectors at 22 and 13 assemblies respectively generated only 55.02 per cent and 43.68 per cent of the salaries paid to them, leading to shortfalls of GH¢1.49 million and GH¢1.34 million respectively.
The situation deteriorated further in 2024, as 245 revenue collectors at 55 assemblies received GH¢11.74 million in salaries but collected only GH¢4.78 million, creating the highest shortfall of GH¢6.96 million over the period.
Although the number of affected assemblies reduced to 14 in 2025, the inefficiency persisted, with 55 collectors paid GH¢2.84 million in salaries while they generated only GH¢1.49 million in revenue, leaving an excess cost of GH¢1.35 million.
The findings raise fresh concerns about the effectiveness of revenue mobilisation systems at the assemblies and the need for stronger oversight to ensure value for money in the collection of internally generated funds.
Experts’ views
A tax practitioner and lawyer, Albert Kungmaa Ziem, in an interview with the Daily Graphic in Accra, stated that the findings highlighted a serious breach of a fundamental principle of tax administration, which required the cost of collecting taxes to remain lower than the revenue generated.
He explained that it was economically unjustifiable for assemblies to spend more on revenue collection than they realised.
“If the state has to spend GH¢22.4 million to collect GH¢10.26 million, then administratively it is very irregular. The state would have been better off allowing the people to keep that money rather than spending more to collect less,” he said.
Mr Ziem stressed that the problem was not the absence of revenue opportunities at the local level but weak monitoring and accountability mechanisms.
“I don’t think there is no revenue to be collected. The issue is monitoring and accountability. The possibility is cash suppression because much of the cash collected is not properly accounted for,” he added.
Mr Ziem stated the need for stronger oversight, merit-based recruitment and continuous training of officials responsible for local revenue mobilisation to improve efficiency and value for money.
“We should train and retrain the revenue collectors, recruit the right people based on competence instead of nepotism, and strengthen monitoring. If we do that, many of these infractions can be eliminated,” he said.
Mr Ziem further stressed that assemblies should embrace digital revenue collection systems and performance-based incentives to reduce leakages and improve collections.
“We have simple technologies that can transmit payment information instantly to the office, making it difficult to suppress revenue. Assemblies should also consider commission-based incentives so collectors are rewarded based on what they mobilise rather than fixed salaries,” he explained.
Weak incentives
For his part, Dr Richard Fiadomor, President of the Chamber for Local Governance (ChaLoG), a civil society organisation (CSO), explained that the recurring inefficiencies stemmed from weak incentives for revenue collectors, many of whom were paid regardless of their performance.
He said that because salaries were guaranteed, many collectors lacked the motivation to maximise internally generated funds.
“If the structure were such that the more you collect, the higher the percentage you get under a commission system, the situation would have been different.
“But currently, the revenue collectors do not see themselves as direct beneficiaries of the revenue they collect, and that is why they do not give of their best,” he said.
Dr Fiadomor stressed that assemblies should make greater use of private revenue collectors, as permitted under existing local government laws, to improve efficiency and accountability.
He said stronger oversight by the central government and the election of metropolitan, municipal and district chief executives would also strengthen local revenue mobilisation.
“If the central government had taken these audit findings seriously, we would not have seen the same irregularities recurring from 2021 to 2025.
“Elected chief executives would treat revenue generation as a priority because they would be directly accountable to the people who voted for them,” he added.
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