Assembly reviews projects

The introduction of the VAT system in Ghana has forced the Agona District Assembly (ADA) to review school projects already earmarked for execution

Addressing the Assembly at its third two-day meeting, the District Chief Executive of ADA, Dr. Charles Kumsah said the District Administration in consultation with relevant committees drew up a budget and presented it through its executive committee to the General Assembly which approved it for implementation. The Assembly has implemented decisions that has to do with the purchase of items and equipment, plus payment for contractors referred to the Assembly by Central Government.

Dr Kumsah however, lamented that they have to review the school projects in view of the deduction by Central Government of the sum of C22 million for the purchase of a Pajero for the Assembly, and the introduction of the VAT.

Dr Kumsah explained that when the Assembly worked VAT on bills of quantities they had from the Architectural and Engineering Services Corporation (AESC), they realised they

had grossly underestimated the projects. "For example, Essusu Methodist Primary School which was initially estimated to cost C6 million went up to as much as C27 million with AESC estimates and when we added VAT, the figure was quite big". As a result, electoral areas that were earmarked for certain projects would rather have them implemented under the 1995 District Common Fund than under the 1994 Common Fund of C300.3 million.