Saturday, 18 November 2017

Ghana: Torshie Addo proposes borrowing to pre-finance activities of MMDAS

Posted On Thursday, 29 June 2017 01:05 Written by
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President Nana Addo Dankwa Akufo-Addo’s nominee for District Assemblies’ Common Fund (DACF) Administrator, Madam Irene Naa, has proposed borrowing from financial institutions to pre- finance the activities of district assemblies. 

This, according to her, would help ameliorate the challenges some districts go through due to delays in the released of the funds.

The former Member of Parliament (MP) for Tema West Constituency, made this known on Tuesday when she appeared before the appointment committee for vetting.

The District Assemblies’ Common Fund is a pool of resources created under Article 252 of the 1992 constitution of Ghana. The pool is provided with at least 5% of the national revenue, set aside to be shared among all District Assemblies in Ghana with a formula approved by Parliament.

Madam Addo told the Committee that she would use a combination of lobbying and borrowing from banks to ensure that Metropolitan, Municipal and District Assemblies (MMDAs) got what was due them for the development of their areas.

“I will be knocking on your doors; you have to help, if given the nod to make sure the money comes in and the right amount comes in. That is very important… If I’m given the nod, once we have the power to be able to invest some of the money to be able to accrue some interest, I’m looking at, with the permission of my minister, bringing certain proposals like this to Parliament to find out whether or not in certain circumstances, just to keep the timelines so that there is no disappointments so that they can plan and manage their areas…I’m thinking about innovative things like that, maybe being allowed at certain times to borrow money for them and pay when the fund comes in,” she said.

Madam Addo also informed the committee that the formula for the distribution of the Common Fund could be affected due to government’s one million dollar per constituency programme.

“It will not affect the formula but as time goes on, it could affect the formula. When you look at basic needs, the districts that have more schools and hospitals are given less, while those who have less are given more. So with the coming in of this money, if people build more schools, hospitals, among others, they get less of the DACF. But that is not to say that they should build more schools. It could affect it in the long-term”, she said.

When approved by Parliament, she will replace Kojo Fynn, the former administrator.

Read 91 times Last modified on Thursday, 29 June 2017 01:58

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