Tepa (Ashanti), 24th June 99 ?

The government will not pay the salaries of the staff of Town and Area Councils, Mr Kwamena Ahwoi, Minister of Local Government and Rural Development, announced on Tuesday.

This is because the town and area councils are expected to keep 50 per cent of revenue they collect and use them as salaries.

Mr Ahwoi was answering questions after addressing the Ahafo-Ano North district assembly at Tepa as part of his visit to the district.

He explained that if government takes up the payment of the salaries of the town and area councils," very soon district assembly members will also be asking for salaries, a situation we cannot meet".

The Minister said the government will not allow its detractors to kill the Poverty Alleviation Fund designed to create access to credit for all hardworking Ghanaians to improve upon their productivity, incomes and standard of living.

He said the NDC promised in its 1996 manifesto to improve on the living conditions of Ghanaians and that it is a social contract for which the policy has been designed.

Mr Ahwoi said the Poverty Alleviation Fund is meant to address unemployment, the rural-urban migration and raising of rural incomes on a countrywide basis.

Over the two-year period of 1997-1998, a total sum of 43 billion cedis should have accrued to the fund in all districts, he said, adding that on the average this means 390.9 million cedis in each district.

The projection for 1999 is that 29.7 billion cedis will accrue to the fund by December 1999. The average per district will be 270 million cedis.

Mr Ahwoi said what is needed is the human factor to make it work and that the human factor is for all Ghanaians who assess the funds to improve their enterprise.

"If the money is used on unproductive ventures such as financial speculation, no benefit would be derived by the community, no employment would have been generated, undue and unfair income would have been earned by the beneficiaries.

"But such activities would not improve food security, reduce poverty and enhance the value of the locality".

Mr Ahwoi said the government will not, however, abort this scheme thereby throwing away the baby with the bathwater, adding "we must make it work and the burden is on all of us to make it work".

"The assembly members, the credit approval committees, the beneficiaries owe it a duty to the nation to diligently pursue the implementation of the scheme", he pointed out.