…94 Assemblies Caught in Web of Ghost Projects, Missing Trucks & Stolen Cash
The 2024 audit of Ghana’s District Assemblies Common Fund (DACF) has revealed alarming levels of financial mismanagement across the country’s local governance structures, with over half of the net inflow to Metropolitan, Municipal, and District Assemblies (MMDAs) lost to irregularities.
According to the Auditor-General’s report, GH¢205.9 million representing 56.6% of the GH¢363.9 million net disbursement to the Assemblies was unaccounted for. The losses stem from a range of infractions, including unauthorized cash payments, abandoned contracts, procurement lapses, sanitation service failures, and tax violations.
The total DACF allocation for the year stood at GH¢520 million, but GH¢156.1 million was deducted at source for service providers, leaving the Assemblies with GH¢363.9 million. Of this, auditors found that GH¢184.9 million was lost through contract irregularities alone, with 94 Assemblies implicated.
These included payments for unexecuted works, stalled infrastructure projects, and completed facilities left idle.
Cash-related infractions amounted to GH¢17.6 million, with 86 Assemblies cited for misapplication of funds, unsupported expenditures, and disbursements made without proper documentation.
In several instances, auditors found no payment vouchers or budgetary approval for the spending.
Procurement and store irregularities, though smaller in scale, were widespread. Sixteen Assemblies failed to account for fuel, equipment, and supplies some of which were reported stolen or left unused. Items such as deep freezers and sanitation tools were procured but never deployed.
Sanitation management contracts with Zoomlion Ghana Limited (ZGL) also came under scrutiny. Despite quarterly deductions from the DACF, ZGL failed to deliver 32 skip trucks and 176 containers, and did not replace 38 broken-down trucks and 164 damaged containers across 128 Assemblies. The report noted that multiple Assemblies had formally raised concerns with ZGL, but received no response.
Tax irregularities were recorded in 39 Assemblies, involving failure to remit withheld taxes to the Ghana Revenue Authority (GRA), non-deduction of statutory taxes, and VAT payments made without valid invoices. These lapses expose Assemblies to penalties and undermine national revenue collection efforts.
The audit paints a troubling picture of systemic weaknesses in Ghana’s decentralised financial architecture. Poor oversight, weak internal controls, and disregard for procurement and financial regulations continue to erode the effectiveness of the DACF as a tool for local development.
The Auditor-General has recommended the recovery of misappropriated funds, disciplinary action against responsible officials, and a comprehensive overhaul of contract and financial management systems. With over half of the Fund’s inflow lost, the findings are likely to fuel calls for deeper reform in the governance of Ghana’s local authorities.