The Internal Audit Agency and the Centre for Local Governance Advocacy have launched the 2023 Public Financial Management Compliance league table for Metropolitan, Municipal, and District Assemblies to rank and assess the appropriation of funds and resources by MMDAs in the country.
The 2023 Public Financial Management Compliance league table assessment is based on the 2022 financial year. Out of the 261 MMDAs in the country, only 11 passed the 50% pass mark.
All six metropolitan assemblies scored above the national average of 22%, but below the 50% pass mark.
The Auditor General in its 2022 report indicated a 48% increment in irregularities at the Local Government level. In an interview with Joy Business, the Director General of the Internal Audit Agency, Dr. Eric Oduro Osae, said the situation is very worrying and needs urgent attention.
“There’s something going on in the system. This is not to say that we are happy about the performance because when you look at the 261 assemblies, only 225 submitted their documents for assessment; what happens to the rest of the assemblies. We also noted that only 11 passed the 50% which is serious and this is about only 4% of local government”.
“So if only 4% have good financial management systems, then it should be a course for us to worry,” he said.
Dr Oduro Osae also called for the strengthening of control systems at the local government level to improve the management of public funds in order to send a positive signal to the International Monetary Fund on Ghana’s quest for assistance.
A senior development planning officer, Samuel Seth Passah, who represented the Local Government Minister, Dan Botwe, called for the sanctioning of poor-performing MMDAs to increase compliance.
The PFM League Table is expected to ultimately inject discipline among public institutions, reduce corruption and improve transparency and accountability.
The MMDAs were urged to be more accountable in the use of public funds to provide effective and efficient service delivery to the citizenry and to deliver on their mandate as stated by law.
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