Accra: Metropolitan, Municipal and District Assemblies (MMDAs) that have met the necessary reporting requirements are set to receive their second-quarter District Assemblies Common Fund (DACF) transfers this week. Most assemblies have complied, although four assemblies still need to fulfill the conditions to access their funds.
According to Ghana News Agency, Mr. Michael Harry Yamson, the Administrator of the DACF, announced this development during the National Dialogue on Decentralisation and Responsive Governance in Accra. He stated that funds for compliant assemblies are ready for transfer, while those that have not met the requirements must wait until they submit the necessary returns. "Everybody else will get their money between Friday and the following Friday, and those who don't comply, just wait. Your money is at the Central Bank and whenever you comply, you'll get it," he said.
Mr. Yamson highlighted that the DACF has strengthened its compliance mechanisms to ensure assemblies submit their financial returns through the Integrated Financial Management Information System (GIFMIS) before transfers are made. This measure aims to enhance financial accountability and ensure public funds are released to assemblies meeting the required reporting standards.
He further emphasized that in the first-quarter transfer process, some assemblies delayed compliance, expecting the DACF to release funds despite failing to submit the required returns. The DACF, however, maintained that compliance is necessary before funds can be released.
Additionally, Mr. Yamson urged assemblies to bolster their internally generated funds (IGF), stating that excessive dependence on DACF transfers could hinder sustainable local development. He suggested that assemblies could increase revenue through property rates, market levies, and other charges linked to economic activities within their jurisdictions.
Mr. Yamson noted that stronger local revenue mobilization is part of proposals to transform Ghana's decentralization system and reduce assemblies' reliance on central government transfers. The DACF is considering mechanisms to incentivize assemblies to increase their revenue while rewarding those that make efforts to expand their economic base.
The Fund is also pursuing reforms to improve transparency through digital systems, including the Intellects platform, which consolidates financial and operational information on assemblies. This system allows the DACF to monitor returns, bank reconciliations, and development projects, with project information tracked to electoral areas. The system ensures that assemblies in arrears are held accountable until they achieve full compliance.
Mr. Yamson explained that the reforms are designed to make accountability an integral part of local governance and ensure public resources lead to sustainable development. Additionally, he announced the launch of the Community Partners Fund, aimed at mobilizing additional resources from citizens, the diaspora, corporate bodies, and international organizations to support local development.
The ultimate goal is to move Ghana's decentralization system beyond dependence on grants towards stronger fiscal, administrative, and political autonomy for local governments. Mr. Yamson called for collaboration among Parliament, government institutions, development partners, assemblies, and citizens to ensure decentralization delivers meaningful development at the local level.
The two-day dialogue was themed "Resetting Democratic Decentralisation for Accountable Public Service Delivery and Accelerated Local Development" and brought together regional ministers, Metropolitan, Municipal and District Chief Executives (MMDCEs), traditional leaders, local government experts, development partners, civil society organizations, and other stakeholders.