?265 Billion Released To District Assemblies

A total of ?265.3 billion was released by the Ministry of Finance as District Assemblies Common Fund for this year. This is an improvement on the ?188.7 billion released by the ministry for the same purpose in 2001. Mr Kwadwo Baah-Wiredu, the Minister of Local Government and Rural Development, who disclosed this in an interview in Accra, said the New Patriotic Party (NPP) Government has been very consistent with the release of the funds since it assumed office.

He said the commitment of the government to enhance the speedy development of rural areas has resulted in the speedy release of the funds to the Administrator of the Common Fund for distribution to the various assemblies. He said he delay in the appointment of an administrator for the fund delayed releases to the various assemblies but said this has been sorted out since his appointment. Mr Baah-Wiredu, however, said the opportunity to explain to the public the difference between the Common Fund and the Heavily Indebted Poor Countries (HIPC) funds. He said whereas the Common Fund represents five per cent of national resources, HIPC funds are those from the country?s creditors which should have been used to service debts but has been agreed by the creditors that the money should be used for development projects.

Mr Baah-Wiredu also disclosed that the ministry is to pursue major legislative reforms of the various local government acts and legislation next year. He said the review is to address the shortcomings of the various legislation to enhance easy administration at the local level. He mentioned Acts 54, 544 and 462 as well as Legislative Instrument 1989 as some of those to be reviewed. He explained that since their enactment, several problems have been identified with regard to their interpretation and implementation which have at times held back the administration of the various assemblies. Mr Baah-Wiredu did not, however, mention the shortcomings.