Metropolitan, Municipal and District Assemblies (MMDAs) have squandered GH¢79.6million (GH¢79,637,897.24) of Common Fund money received in 2018.

The amount represents 194.6 percent increase over the GH¢40.9 million (GH¢40,929,999.54) squandered in 2017.

The findings bother on violations of rules, regulations, and directives, which had been put in place to ensure efficient management of resources.

These are contained in the report of the Auditor-General on the management and utilisation of District Assemblies' Common Fund and other statutory funds for the year ended December 31, 2018.

The report which has been dated June 10, 2019, and signed by Daniel Yaw Domelevo Auditor-General has been presented to parliament.

The report blamed the findings on lack of commitment on the part of the management of Assemblies in the implementation and enforcement of my audit recommendations towards mitigating infringements of the laws as well as non-imposition of sanctions to minimise the violations.

Allocations of GH¢460m Common Fund to MMDAs

In compliance with Section 129 (b) of the Local Governance Act, 2016 (Act 936), the Administrator of District Assemblies Common Fund disbursed a total amount of GH¢460,000,004.14 to the 254 Assemblies last year.

GH¢96.4 deducted at source for Assemblies’ Service Providers

Of this amount, GH¢96,419,133.24 was deducted at source in favour of the Assemblies’ Service Providers.

This represented a 1.92 per cent decreased in funds inflow to the Assemblies as compared to 2017 where 80.96 per cent of the funds allocated was transferred by the Administrator to the MMDAs.

GH¢47.1m cash irregularities

According to the report of the Auditor-General, cash irregularities in the sum of GH¢47,139,747.82 occurred at 225 Assemblies.
These included funds not accounted for, payments not properly supported with relevant documentation to authenticate the transactions, unretired funds among others.

GH¢7.3m Procurement/stores irregularities

The report found that procurement and stores regularities recorded by the Assemblies amounted to GH¢7.3m (GH¢7,356,299.95).

This represents 202 per cent increase over GH¢2.4 million (GH¢2,437,094.30) recorded in 2017.

“Even though some of these irregularities did not result in outright losses, they represented violations of the Procurement Law and Financial Administration Regulation that did not ensure that the Assemblies obtained value for the resources expended,” it stated.

GH¢452,983.31 Tax irregularities

The Auditor-General’s report discovered tax irregularities with a total value of GH¢452,983.31 in 70 Assemblies.

Contract irregularities

The audits encountered contract irregularities such as completed projects not in use, projects which were either abandoned or their execution significantly delayed.

Others were in respect of payments for construction works with no evidence of execution.