“Chop Chop” in Mills Government

By Sammy Agyei

Ninety five out of 170 Assemblies have been indicted by the Auditor - General for engaging in procurement and contract irregularities, among others, in a Report dated September, 2011 and submitted to Parliament in accordance with Article 187(5) of the Constitution.

In the Eastern region, the Upper Manya Krobo, Suhum Kraboa Coaltar and Akuapem South Assemblies have been accused of awarding contracts valued at Gh?426,413.11(over 4.2 billion cedis) without entering into formal contract agreements with the contractors.

The Akuapem South Municipal Assembly, for instance, was further cited for overpaying three contractors Gh?121,741.69 while awarding various contracts valued at Gh?841,690.90(over 8.4 billion cedis), without going through tender, in clear violation of the provisions of the Public Procurement Act 2003, Act 663. In the Greater Accra region, unsubstantiated Common Fund deductions at source in only two Assemblies, Ashiaman and Adenta, amounted to Gh?2,285,034.34(over 20 billion cedis). According to the Auditor-General, the financial management of Metropolitan, Municipal and District Assemblies (MMDAs) were "characterised by widespread and persistent violation of statutory and legislative provisions, as well as policies and procedures established to ensure effective and efficient administration of the MMDAs." In a Report on the management and utilisation of the District Assemblies’ Common Fund and HIPC Fund by the MMDAs, the Auditor General exposed the Assemblies and the Ministry of Local Government and Rural Development, stating that "the existing unsatisfactory state of affairs is due mainly to the lack of commitment...and lukewarm attitude towards effective management and monitoring of resources of the MMDAs."

Citing procurement and contract irregularities, among others, the Auditor General indicts 95 Assemblies across the country with the Ashanti region topping with 27 Assemblies. The Ashanti Region is followed by followed by Volta region with 17 Assemblies. In the case of the Volta region, 16 out of 18 Assemblies had even failed to submit financial statements for a number of years, prompting the Auditor General to call for severe sanctions. 12 Assemblies in the Central region and 11 in the Western region follow in that order.

The Auditor-General disclosed further "that during the 2009 financial year under review, deductions made from the DACF allocations of the MMDAs by the Administrator totalled over Ghc85 million out of gross allocation of Gh?192, 195,549.22.”