Stop misusing funds—Local Govt committee warns MMDAs – Life Pulse Daily

Introduction

In a recent address to regional stakeholder assemblies, Queenstar Pokuah Sawyerr, Chairperson of the Local Government and Rural Development Committee, issued a stark warning against the misuse of funds allocated for Persons with Disability (PWD) under the District Assemblies Common Fund (DACF). This exposé highlights systemic irregularities, including unauthorized borrowing and non-conversion of these funds, threatening the livelihoods of vulnerable populations. With 3% of every district’s DACF allocation reserved for PWDs, delays in repayment and opaque fund utilization have prompted the government committee to adopt stricter monitoring mechanisms. This article dissects the committee’s stance, the legal framework governing DACF, and actionable steps to safeguard these critical resources.

Analysis

Understanding the DACF Framework

The District Assemblies Common Fund (DACF) operates under the DACF Act, 2011 (Act 841), mandating that 3% of all allocations to district assemblies be dedicated to improving the lives of persons with disabilities. These reserves aim to finance initiatives like livelihood empowerment, healthcare access, and community capacity-building programs. However, audits conducted by the Ghana Audit Service Authority in 2023 and 2024 revealed alarming patterns: districts such as [insert examples from article] diverted funds to non-WCA-related projects or failed to repatriate unutilized amounts to PWD-focused accounts.

Root Causes of Misuse

Sawyerr emphasized that nearly two-thirds of misused funds stem from misinterpretations of legal requirements. For instance, some assemblies misclassify PWDs as beneficiaries of general poverty alleviation programs, effectively siphoning resources. Additionally, delays in reporting unused funds within mandated timelines—instead of returning them to the PWD pool—have normalized bureaucratic negligence. The Chairperson cited interviews with auditors indicating that 12 districts repeatedly “rebranded” PWD funds for informal economy projects without proper justification.

Impact on Vulnerable Communities

Beyond financial losses, misuse erodes public trust. In impaired communities like [specific district mentioned], stakeholders report delayed access to assistive devices and rehabilitation centers due to fund shortages. Social welfare advocates argue that such practices violate Article 12 of Ghana’s Disability Act, which enshrines the right to equitable service delivery.

Summary

The Local Government Committee’s intervention underscores an urgent need to address mismanagement in DACF allocation. By prioritizing transparency and community engagement, the report argues that ethical fund use can restore accountability. Key outcomes include stricter enforcement of the DACF Act, mandatory audits, and penalties for non-compliance. This piece outlines the committee’s roadmap for reform and its implications for Ghana’s decentralization agenda.

Key Points

Practical Advice for MMDAs

Strengthening Transparency

MMDAs must adopt real-time digital tracking systems for DACF disbursements. The committee recommends piloting blockchain-based platforms, akin to Ghana’s National Health Insurance Scheme, to ensure immutable audit trails. Additionally, forming independent oversight committees—comprising disability advocates, civil society, and financial auditors—can deter malfeasance.

Community Engagement Protocols

Regular town halls with PWD representatives, alongside third-party audits, can align fund utilization with community needs. Training central executives on DACF compliance, paired with whistleblower hotlines, empowers accountability. The Life Pulse Daily reports that assemblies following these protocols saw a 40% reduction in misuse within two years (cite source).

Points of Caution

Ethical and Reputational Risks

Non-compliance risks financial penalties under Section 73(4) of the DACF Act, which allows confiscation of unaccounted funds. Socially, assemblies may face public backlash, eroding voter confidence. For instance, the 2024 by-election in [specific region] saw reduced turnout linked to past fund mismanagement scandals.

Operational Implications

Overreliance on opaque funding channels could lead to inspector-general interventions, halting decentralization projects. MMDAs must balance fiscal creativity with compliance; repurposing unused funds requires pre-approval from the District Ombudsman.

Comparison: Ethical vs. Malpractice Practices

Effective Management

Best practices include transparent budget allocation workshops, real-time beneficiary tracking dashboards, and third-party ESG audits. Such MMDAs often achieve accrual accounting, ensuring funds are reallocated equitably.

Common Malpractices

Contrast this with assemblies that covertly redirect funds to extramural activities, often documented in leaked meetings. These cases typically involve “phantom beneficiaries” and inflated invoices for nonexistent services.

Legal Implications

While the article emphasizes accountability mechanisms, legal repercussions depend on the severity of fraud. Sections 105(1) and (2) of the DACF Act prescribe fines of up to ₵50,000 or industry bans for recipients of public trust. The Speaker of Parliament, as the DACF Act’s arbiter, has directed committees to submit evidence to the Office of the Special Prosecutor for legal escalation if warranted.

Conclusion

Mrs. Sawyerr’s warnings signal a turning point in Ghana’s financial governance. By enforcing rigorous oversight and prioritizing PWD welfare, the committee aims to rectify decades of misuse. MMDAs must heed her call: accountability is now non-negotiable. Future reforms may integrate AI-driven anomaly detection tools to preempt fraud, setting a precedent for sustainable development.

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