Assemblies to access private capital soon

Takoradi, June 20, GNA - Mr Stephen Asamoah Boateng, Minister of Local Government, Rural Development and Environment has announced that district; municipal and metropolitan assemblies would be assisted to access long-term credits.

He said this could be done only if the Local Government Finance Act and the special financing intermediary were restructures through the Municipal Finance and Management Initiative (MFMI). This was contained in a speech read on his behalf at the opening of a two-day workshop for district chief executives, coordinating directors, budget and planning officers from the Western and Central regions.

He said the revised Local Government Act of 1993 would develop a sustainable, vibrant and reliable local credit market for the various assemblies; to enable them meet the unfulfilled infrastructure projects. The Minister said the new bill would also introduce the establishment of a Municipal Finance Authority with a mandate to mobilise resources from both internal and external sources and channel them into productive development and also manage the resources. He said the MFMI would improve revenue and financing strategies of the assemblies and link them up with financial institutions. Mr Philip K Nkrumah Shama Ahanta East Metropolitan Chief Executive, who chaired the function, said the new bill would assist the assemblies to borrow and invest in income generating projects that would create wealth and employment for their people.

He said the assemblies would minimise their reliance on central government for financial support to meet their recurrent and other expenditures. 20 June 07