The Minister for Local Government and Rural Development, Dan Botwe, has written a letter to President Nana Akufo-Addo in which he has strongly fingered Irene Naa Torshie Addo-Lartey, Administrator of the Districts Assemblies Common Fund.
Mr Botwe’s letter is over what he described as her refusal to cooperate with his Ministry in the equitable disbursement of District Common Funds in a style which would be in the best interest of government.
“It is instructive for His Excellency to note that this Ministry has not had the expected level of cooperation from the Office of the Administrator of the District Assemblies Common Fund.
“In the past two years and three months since I have been in the Ministry, efforts to get the Office of the Administrator of District Assemblies Common Fund to align with the Ministry in the strategic determination of the beneficiary Districts of such allocations have not been successful,” an unhappy Minister Botwe, noted in his letter to the President, dated Monday, July 10, 2023.
He continued: “Even more worrying is the fact that as the Ministry responsible for the MMDAs we are not involved, engaged or consulted in any form by the Administrator of the District Assemblies Common Fund in the development of the formula proposed to Parliament.
“We are of the view that, government would be more efficient in the utilization of such resources if we align the decision making process with all relevant stakeholders.”
Mr Botwe argued that his Ministry, by law, has the mandate to provide a coordinating and supervisory role over the activities of the MMDAs and to guide their development activities, therefore, the mandate to determine which Districts receive such support and special attention lies with the Ministry.
“We are of the firm belief that the trigger for distribution should be initiated by the Ministry, on behalf of government, to ensure it sits well within the broad government strategy,” he added.
Mr Botwe argues further: “Annually, the Administrator of the District Assemblies Common Fund proposes the formula for distribution of the District Assemblies Common Fund to the Parliament of Ghana.”
Once the approval is done, the Administrator of the District Assemblies Common Fund has the function under section 129 of the Local Governance Act, 2016 (Act 936) to “administer and distribute money paid into the Common Fund among the District Assemblies in accordance with the formula approved by Parliament.”
Section 126 (3) of the same Act states; The Minister shall in consultation with the Minister responsible for Finance, determine the category of expenditure of the approved development budget of District Assemblies that must in each year be met out of amounts received by the District Assemblies from the District Assemblies Common Fund.
Part of the approved formula/allocation are activities like;
- National Projects
- Special Projects
- Distressed District Support
- Reserve funds
The Ministry holds the view that, when it comes to the above activities in the approved formula, the Administrator of the District Assemblies Common Fund does not have the authority to determine the distribution unilaterally, as it must sit within a broad strategic framework of Government.
“As the supervisory Ministry of the Local Governance Act, 2016 (Act 936) and the Ministry responsible for coordinating the MMDAs, we are of the view that the mandate to determine which Districts receive such support and special attention, lies with the Ministry. We are of the firm belief that the trigger for distribution should be initiated by the Ministry, on behalf of Government, to ensure it sits well within the broad government strategy.
“Even more worrying is the fact that, as the Ministry responsible for the MMDAs we are not involved, engaged or consulted in any form by the Administrator of the District Assemblies Common Fund in the development of the formula proposed to Parliament.
“We are of the view that, Government would be more efficient in the utilization of such resources if we align the decision making process with all relevant stakeholders.
“It is instructive for His Excellency to note that this Ministry has not had the expected level of cooperation from the Office of the Administrator of the District Assemblies Common Fund. In the past two (2) years and three (3) months, since I have been in the Ministry, efforts to get the Office of the Administrator of District Assemblies Common Fund to align with the Ministry in the strategic determination of the beneficiary Districts of such allocations have not been successful.
“In the meantime, the Ministry has requested from the Office of the District Assemblies Common Fund Administrator, details of the disbursement done so far from the approved allocations to enable the Ministry align and strategize to aid equity and strategic development of the MMDAs.
“However, the Office of the District Assemblies Common Fund Administrator has since refused to respond to my letter. (Copy of letter attached).
“In Conclusion, this Ministry is of the view that the trigger for the utilization of the activities and allocations stated above can and should only be done by the Minister for Local Government, Decentralization and Rural Development, on behalf of Government to ensure consistency with Government’s aspiration for development of the MMDAs.”
I count on your continued support.
SIGNED,
DANIEL BOTWE (MP)
MINISTER
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