I used Common Fund to buy khebab for your parents - NDC MP blasts branch executive

A video of Theresa Lardi Awuni, the Member of Parliament for Okaikwei North Constituency under the National Democratic Congress (NDC), has recently gone viral.

In the 31-second video, the MP is heard hitting out at a branch executive believed to be from her party.

The video captures a visibly agitated Lardi Awuni, addressing a gathering of individuals, believed to be NDC sympathizers.

She takes the opportunity to explain the context that led to her outburst, detailing that the branch executive had questioned her over the use of the Common Fund allocated to the constituency on a platform they both belong.

The MP, evidently displeased is heard saying, "A branch executive in this constituency, three days ago went to write on the platform, that what does the MP use the Common Fund for?

“I used it to buy khebabs for your mother and father... is Common Fund personal money given to us? I haven’t even seen some before, they don't give it to me directly."



What is District Assembly Common Fund (DACF)

The District Assembly Common Fund is established by the District Assembly Common Fund Act 1993, (Act 455) under Article 242.

The purpose of setting this fund is to provide resources to support the developmental activities of the local government. It is a fund created out of the consolidated fund to channel resources from the central government to the local governments for development.

The District Assemblies Common Fund (DACF) is a pool of resources created under section 252 of the 1992 constitution of Ghana.

It is a minimum of 5% of the national revenue set aside to be shared among all District Assemblies in Ghana with a formula approved by Parliament. It is a Development Fund which enables the use of the nation’s wealth throughout Ghana to the benefit of all citizens.



Purpose of the DACF

a) The Fund is to ensure equitable distribution of the national resources for the development in every part of Ghana.

b) To Improve Housing Schemes.

c) To support sanitation management

d) It is to strengthen decentralization and to promote Sustainable self-help development communities.

e) To improve upon primary health care delivery in all parts of Ghana

f) It is to improve the country’s educational facilities, and to ensure quality education

g) The Fund supports Community policing.
Sources of money into the fund

The District Assembly Common fund is financed from the following sources:

a) A minimum of 5% of total tax revenue is transferred quarterly into the fund.

b) Income from investment of the fund

c) Donations and Grants

Expenditures Charged on the fund

a) Disbursement to MMDAs/MPs

b) Disbursement to RCCs

c) Direct expenditures on behalf of MMDAs (reserves)

d) Administrative expenses directly related to funding administration (audit fee, bank charges etc.)

Approved areas of spending the share of DACF by the MMDSs:

a) Economic Ventures(Energy, Markets, Agriculture, Services roads etc.

b) Social services(Education, health, Water, Sports and Recreation, Self-help projects, Educational Activities etc.)

c) Administration (capacity building of DA staff and Assembly members, Accommodation, office Equipment etc.

d) Environment(Sanitation, Disaster management)

e) MPs common fund

Administration of the District Assembly Common Fund/ Functions of the Administrator

The fund is administered by the DACF Administrator appointed by the president. The DACF Administrator has the following mandatory functions:

a) Propose formula annually for the allocation and distribution of the common fund to the MMDAs

b) Allocate and distribute the common fund quarterly based on the approved formula to the various MMDAs

c) Report in writing to the MOF on how the fund was distributed and utilized by the various MMDAs; and

d) Perform any other functions required by the President of the Republic

Benefits of the District Assembly Common Fund (DACF)

a) The fund aims at creating jobs for all through programmes such as cottage industries.

b) It seeks to get more people to gain access to improved shelter through the housing.

c) Through the fund, health facilities are expanded and improved to make health delivery accessible to many people

d) Through the fund numerous school buildings and structures have been constructed for the increasing needs of the population.

e) The fund encourages and supports communities that make effort to initiate their own development projects (Community Initiated Programme).

Challenges of the Administration of the DACF

a) Delay in the release and disbursement of the fund to the MMDAs

b) Government interference in the allocation and disbursement of the fund

c) Inadequacy of funds

d) Misappropriation and financial malpractices at the MMDAs level

e) Over-reliance on the fund by some district assemblies. Retarding innovative financing.

Financial Report by the DACF Administrator

The Administrator of the common fund is obliged to submit to parliament, an annual report on the activities undertaken during the preceding fiscal year. The report should include information on the manner in which the monies lodged in the common fund has been distributed and the report of the Auditor-General on the accounts

The financial report of the common fund is basically made up of Income and Expenditure Account and then a statement of financial position showing the financial state of the fund.

AM/SARA

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