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Home Politics

Non-payment of statutory funds: Minority accuses gov’t of jeopardizing local governance and essential services

Osumanu Al-Hassan by Osumanu Al-Hassan
May 22, 2025
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The Minority in Parliament has accused the Mahama-led administration of breaching the law by failing to release key statutory funds nearly six months into its tenure. The delay is jeopardizing local governance and essential services across the country.

At a press conference held in Parliament on Thursday, Minority Chief Whip and Member of Parliament for Nsawam-Adoagyiri, Hon. Frank Annoh-Dompreh, criticized the government for withholding the District Assemblies Common Fund (DACF), the Ghana Education Trust Fund (GETFund), the National Health Insurance Fund, and other constitutionally mandated disbursements.

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“It is surprising that after almost six months, out of the allocation of GH¢7.7 billion, not even a penny has gone to the Assemblies. This clearly violates Act 936 of the Local Governance Act and defies a court ruling that mandates quarterly disbursements,” Annoh-Dompreh stated.

According to the MP, the 2025 Budget allocated over GH¢7.5 billion to the DACF, yet Metropolitan, Municipal, and District Assemblies (MMDAs) have not received any transfers.

“The entire first half of the year has passed, and nothing has been paid. The newly appointed Common Fund Administrator is effectively idle. Our checks at the fund secretariat confirm that no disbursements have been made,” he added.

The situation, he warned, is not limited to the DACF. He revealed that an allocation of GH¢9.92 billion to the National Health Insurance Authority (NHIA) remains unpaid, while the GETFund, with GH¢4.1 billion earmarked for education infrastructure and scholarships, has also seen zero disbursements.

“Even Parliament itself has not received its second-quarter releases. This cannot be explained away by bureaucracy or delayed appointments. These are statutory obligations, and they must be met,” Annoh-Dompreh lamented.

He questioned the government’s fiscal priorities, especially in light of recent tax hikes.

“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 said.

He suggested the delay might be a deliberate strategy by the government to create an illusion of fiscal discipline and cedi stability.

“Is this a ploy to make the books look good while failing to fund critical services? That would be deeply unfortunate,” he said.

The Minority Whip emphasized the human cost of the government’s inaction, pointing out that statutory funds like the DACF support programs for the disabled, poverty alleviation initiatives, water and sanitation projects, and education for needy but brilliant students.

These delays, he said, have far-reaching and devastating effects and the people who suffer are the most vulnerable—those who rely on boreholes, farming support, school fees, and basic healthcare.

He also expressed concern over the complete non-payment of the Social Investment Fund (SIF), another statutory fund designed to strengthen social protection at the district level.

Hon. Annoh-Dompreh issued a terse warning to the government, accusing it of taking advantage of first-year goodwill to evade accountability.

He said, “They are doing all the wrong things in their first year, hoping the public’s goodwill will shield them. But statutory obligations are not optional—they are the backbone of governance. We will not be silent. These laws exist for a reason, and they must be respected.”

The Minority vowed to keep the pressure on until the government fulfills its legal and financial obligations to the people of Ghana.

Tags: essential servicesLocal governancestatutory funds

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