MMDAs cautioned against entering into liability agreements

Metropolitan, Municipal and District assemblies (MMDAs) have been cautioned to desist from entering into financial agreements that would bind them for more than a year and create liability for government.

Mr Ken Ofori-Atta, the Minister of Finance, said those agreements, without prior written approval from the Minister of Local Government and Rural Development, may result in a contingent liability on the Central Government.

This was in a speech read on his behalf at the Composite Budget Hearing of the Agona West Municipal Assembly at Agona Swedru in the Central Region.

Mr Ofori-Atta said the Government would not tolerate inefficiencies and waste in spending, adding that there would be strict enforcement of all relevant financial laws and regulations.

He said the new Public Financial Management Act 2016 (Act 921) mandates MMDAs to, among other things, take measures to address all infractions reported by the Auditor General.

He expressed the hope that they would support efforts of the Government to control huge wage bills and free up more resources for infrastructural development and improve service delivery.

The Finance Minister stated that the support of both political and administrative leadership at the local level was needed, particularly relating to recruitment, replacement and elimination of ghost names.

He said as part of efforts towards ensuring a more credible Composite Budget for 2018, the Ministry of Finance had forwarded a template to all MMDAs to capture the necessary data.

Mr Ofori-Atta called on them to step up revenue generation and reduce the dependence on Central Government transfers for their developmental projects.

He, therefore, charged regional ministers, and metropolitan, municipal and district chief executives to lead the crusade to improve revenue generation.Dr Eric Akobeng, the Head of Budget at the Assembly, said the Assembly was doing everything possible to encourage revenue collectors and other staffs to improve on the Internally Generated Fund.

He said it had taken data of stores, buildings and other unmovable assets through street and property naming to help rake in more revenue.