Ghana’s local governance and essential services are teetering on the brink, as the Mahama-led administration stands accused by the Minority in Parliament of illegally withholding billions in statutory funds.
This comes amidst a period of increasing taxes, raising serious questions about the government’s fiscal priorities and commitment to public welfare.
At a press conference on Thursday, Minority Chief Whip Hon. Frank Annoh-Dompreh decried the government’s failure to release crucial funds like the District Assemblies Common Fund (DACF), the Ghana Education Trust Fund (GETFund), and the National Health Insurance Fund, nearly six months into its term.
Statutory funds
Annoh-Dompreh lamented the stark reality: “It is surprising that after almost six months, out of the allocation of GH¢7.7 billion [for DACF], not even a penny has gone to the Assemblies.” He emphasized that this isn’t just a delay, but a “clear violation of Act 936 of the Local Governance Act” and a direct defiance of a court order for quarterly disbursements.
Despite the GH¢7.5 billion allocated to the DACF in the 2025 Budget, Metropolitan, Municipal, and District Assemblies (MMDAs) have received nothing. “The entire first half of the year has passed, and nothing has been paid,” the MP stated, confirming that the Common Fund Administrator is effectively without work.
The situation is equally grim for other vital sectors. The National Health Insurance Authority (NHIA) has seen its GH¢9.92 billion allocation untouched, and the GETFund, with GH¢4.1 billion earmarked for education and scholarships, has also received zero disbursements. Even Parliament itself is awaiting its second-quarter releases.
Annoh-Dompreh questioned the government’s rationale, especially given recent tax increases. “You have increased the Growth and Sustainability Levy from 1% to 3%. VAT on non-life insurance has gone up. You have introduced new taxes and collected them, yet you are flouting statutory payment laws.”
He suggested the delay might be a deliberate attempt to artificially boost the cedi’s stability and present a misleading picture of fiscal health.
The MP stressed the profound “devastating effects” on the most vulnerable citizens who depend on these funds for essential services like boreholes, farming support, school fees, and basic healthcare. The complete non-payment of the Social Investment Fund (SIF) further exacerbates the crisis at the district level.
The Minority warns that they will not be silent as the government “takes advantage of first-year goodwill to evade accountability,” vowing to press for the immediate fulfillment of these legal and financial obligations.
By Osumanu Al-Hassan/thenewsbulletin24.com