Hon Frank Annoh-Dompreh
Nsawam/Adoagyiri

Mr Speaker, I rise pursuant to Standing Order 93(1), and with your leave and the indulgence of the House, I raise a matter I consider to be of urgent public importance, and further pray for some consequential directives in this regard.

Mr Speaker, I have painstakingly investigated this matter and on my own come to some conclusion. However, I do not hold a complete repository of knowledge, hence I want to air the matter and get the buy-in of Members and for us to come to some good conclusion on this matter.

Mr Speaker, last year, as the practice has been, this House passed the 2025 District Assemblies Common Fund Formula, and the variables involved – Mr Speaker for want of time, I do not have to go through it – are defined in this document. The overarching subject area matters that the Fund was meant to deal with. Then, subsequently, we got hold of a document that, Mr Speaker, with your leave, is captioned as “Approval of Guidelines for Utilisation of the District Assemblies Common Fund for the Year 2025”, emanating from the Ministry of Local Government, Chieftaincy and Religious Affairs. This is not a Regulation; it is a guideline. We have also taken time to look at the Local Governance Act, 2016 (Act 936) which gives some powers to the Minister for Local Government Chieftaincy and Religious Affairs to issue some regulations.

However, the Act does not permit the Minister to redirect and also give specific allocation in terms of percentages, how the funds should be allocated. That power is exclusively given to this House by Article 252. Hence, there is a question of our powers being eroded away. There is a concern about separation of powers, the Executive veering its hand into our authority and powers given to us by this Constitution.

Mr Speaker, just to conclude on this matter, the guidelines give some eight areas with percentages and the total sums up is 100 per cent. Government Flagship Programme, design and construction of the 24-Hour Economy Model Market for which twenty-five per cent has been allocated or earmarked. They allocated these percentages to these: Health Facility which is at least two CHPS compounds, 10 per cent; educational facilities, 10 per cent; Water, a minimum of 10 boreholes, 10 per cent; environmental sanitation, solid and liquid waste management, 10 per cent; administrative including monitoring and evaluation, 5 per cent; school furniture, 10 per cent; and the completion of legacy project, 20 per cent. All these sum up to some 100 per cent.

However, if one looks at allocation in the Statement and the formula that was approved, the guideline is a significant departure from the formula that was approved by this House. So, I think we may be setting a very dangerous precedent. Also, our constitutional powers eventually may be eroded and we would be setting a bad precedence for the future. Hence, this has been my preliminary investigation report that I found.

I am amenable to an absolute investigation by a Standing Committee of this House to come out with the facts and for us to give finality to the same matter. So, Mr Speaker, I would not want to further drag this matter. I appeal to you to consequentially refer this matter to the Standing Committee on Local Government and Rural Development, for them to investigate thoroughly and come and apprise this House on same matter. This is for us to either adopt the Report of the Committee, take a decision or otherwise.

Mr Speaker, it is to firm up and to confirm our parliamentary jurisprudence and also to give meaning to separation of powers. What is meant to be done by Parliament cannot and should not under any circumstance be compromised for any other arm of government or agency of state. This is fundamental, important and I make this point devoid of any paranoid mind. But just to say that we must get to the bottom of this matter as a House and to give finality to this matter once and for all.
I thank you, Mr Speaker, for the treasured space.

Hon Ayariga Mahama
Bawku Central

Mr Speaker, this matter is easily settled by just reading the Constitution and nothing more.

The Article 252 of the Constitution says:

“1. There shall be a fund to be known as a District Assemblies Common Fund.
2. Subject to the provisions of this Constitution, Parliament shall annually make provision for the allocation of not less than five per cent of the total revenues of Ghana to the district assemblies for development and the amount shall be paid into the District Assemblies Common Fund in quarterly instalments.”

Mr Speaker, the task of Parliament is simple and it is to make sure that not less than 5 per cent of the total revenues is allocated to the districts. So, our obligation is to make sure, that amount is set aside for the district assemblies.

Then the subclause 3 says: “3. The moneys accrued to the District Assemblies in the Common Fund shall be distributed among all the District Assemblies on the basis of a formula approved by Parliament.”

So, we ensure that five per cent is allocated. Then, we ensure that there is a formula for distributing the money to the districts by way of a formula. That is a formula that we approve. The formula basically takes into consideration certain factors such as, whether you are a metropolitan or a district assembly, whether you are a municipality, your population, your landmass, whether you are a rich or poor municipality, all those are in the formula. Now that is the formula that is brought to us for us to distribute. When that is done by Parliament, we have finished our job.

Now at the district assembly level, what the Government and the Ministry for Local Government, Chieftaincy and Religious Affairs decide with them— Ultimately, it is their decision as assemblies. But the central government gives them guidelines on how to spend the money. Mr Speaker, I do not see how that, compared to what we saw in this country, where a significant chunk of the money was squandered in Accra. Not too long ago, when the moneys were squandered in Accra and the assemblies got absolutely close to nothing—This Government now says 80 per cent of the money must hit the accounts.

Mr Speaker, I am the Chairperson of the Committee on Independent Constitutional Bodies and as Chairperson, we have records of how moneys were spent in the last eight years. If he wants us to conduct an enquiry into this matter in this House, we would do it, so that the whole country will see how the moneys were squandered.

Mr Speaker, it is a known fact and that is the basis of the promise of the National Democratic Congress (NDC) in its manifesto, that 80 per cent of the money must hit the accounts of the assemblies. As we have it now, 80 per cent of the money is sent directly to the assemblies. The record is there and they are using it. All these guidelines seek to do is to make sure that when moneys are sent there, the abuse of the money, which we saw at the central level, is not visited on the money at the district level. So, we do not just want to give money to the assemblies, then they would do whatever they want with the money.

That is why Government has sent guidelines to the District Chief Executives (DCE) to build schools, markets, CHPS compounds, kindergartens, drill a certain minimum number of boreholes and then deal with the environment. Then a certain amount should be spent on sanitation. These are the core items contained in the guidelines.

Indeed, if citizens see that the monies that are sent to the assemblies are indeed used to address these issues, they would continue to support the assemblies and to pay their property rates so that more development can come. There is nothing absolutely wrong with these guidelines. He has not shown any legal provision that has been violated.

In any case, in this House, we were here when even the amount that was to be given to the assemblies, were not given. What did we do? We went to the Supreme Court. Do you think that giving guidelines to the assemblies to use moneys properly violates the Constitution? There is another avenue. It is not the business of this House to investigate those matters. We are not the Supreme Court; we are not the ones to interpret the Constitution.

So, if they think that there is a constitutional violation, they should go to court. Ask for the policy, ask for the directives, ask for the guidelines. I can assure them that the guidelines have been sent. We do not need any investigation. I can confirm that the guidelines have been sent. So, if they are asking that we should do investigation to find out whether it is true, I am saying that it is true, that guidelines have been sent to the Assemblies and the details of the guidelines are exactly what they read So, the only issue for determination is whether those guidelines are legal or illegal. That is the only issue for determination. That is the only issue for determination and they know where to go and seek that determination. They know where to go to.

We went there, and we got a ruling that showed us how the allocation to the District Assemblies should be computed. Including oil revenue. We went to court. They are free to go to court. This is a court that is impartial. This is a court that will give a verdict in favour of even the Minority and they would come to this House and celebrate the verdict. So, they are free to go to this same court.

Mr Speaker, we have issued guidelines to the Assemblies, we will issue it next year, we will issue it the year after, and we will monitor to ensure that they comply by those guidelines. Because this is the surest way to ensure that when monies are sent to the Assemblies, those monies are indeed used for the welfare of the people. Because there is a practise where monies are sent to Assemblies, and a chunk of the money is spent on administrative expenses.

District Chief Executives (DCEs), Chief Directors, Directors, are always running to Accra to attend a seminar and they are drawing on that money. So, at the end of the year, when we do the computation, we find out that the monies sent to the Assemblies, have all been consumed on administrative matters, on travels, on conferences, and et cetera. That is why this Government is saying, no, when we send 80 per cent of the money to them, we expect them to build this number of schools, this number of CHPS compounds, drill this number of boreholes, and construct a market. These are the standard things that you must do with the money and the debt, the projects that the previous government commenced and left, a percentage of it must be used to pay for the expenses of those projects. Then they can only spend a small fraction of the money for administrative expenses, not more than five per cent.

Mr Speaker, I now know Assemblies that are getting close to 10 times what they ever got when the New Patriotic Party (NPP) was in government. The records are there as well. I do not think that there is an issue. We have issued the guidelines. There is no denying that we have not issued guidelines. We have issued guidelines. The guidelines are as indicated by him. He is free to go to court and challenge the guidelines. I do not think this House should waste its time setting up a committee to enquire and investigate any matter. Nobody is denying anything.

Hon Abdul Aziz Fatahiya
Savelugu

Mr Speaker, we are Members of Parliament sent by our people as representatives, so our interest is to speak on behalf of our constituents.

The Statement raised by the Minority Chief Whip is a very serious Statement. We should look at it from that angle. Mr Speaker, this House has a convention where we pass a formula. The Common Fund Administrator accompanied by the Minister will come to this House, present his formula to us and give us what exactly the money will be used for item by item, project by project. We passed it and, in fact, we get the resources to monitor exactly what has been presented to us on behalf of the people, to be sure that what the Government, through the Administrator and the Minister, has said is the correct thing.

Mr Speaker, if after all this, we now have a situation where an administrative fiat by the Minister, outside what Parliament itself has agreed and is aware of and is known to, is approved and the attention diverted completely from what Parliament has said, I think that it is a very serious matter. We all know and we have acknowledged that it is a good thing they have done to send the resources to the district; that is not in contention.

Last year we said it and this year we have said it. In fact, during the debate of the formula we all acknowledged it. So, it is not something new to anybody that we are sending the resources down. The previous government for which I served as Minister decided to cap Common Fund and Ghana Education Trust Fund (GETFund) and use some of the resources to do things in Accra like buying District Road Improvement Project (DRIP) equipment that my good Friend, the Minister for Roads and Highways, is now using, building 100 courts for the Judiciary for the first time and different other things. But that is alright.

That is the decision by the Government then. I think that what he has said, that we have a formula that is known to this House, and that we have also gone to inform our constituents that this amount of money will be used for this up to 100 percent, which of them are we now going to monitor? Are we going to monitor the new administrative expenditure or what Parliament has passed? I believe that the Minister and the Administrator will have helped themselves if they had included this administrative fiat into the formula. This is the first time and the House should not allow anybody—

Mr Speaker, guidelines are issued not in deviation to what the House itself has passed; that is the difference. If we read exactly what has been said, it is completely different from what this House has passed; that is the difference. Mr Speaker, the guidelines have always been very simple: stick exactly to what the House has passed and the formula. That is exactly what it is. If the Minister had decided to do that, I would not have a problem and that has always been the case.

Mr Speaker, the point I am just making is that we should not belittle the point that the Minority Chief Whip has made. It is a very serious point and it boils down to exactly our core business. Because Mr Speaker, if something can be passed in this House and as a Minister, I go outside and do a different thing and the House takes no exception to it, then what is the use of bringing the formula here? Why should we bring the formula? Why should we pass the formula?

Mr Speaker, the District Assembly Fund is not just Common Fund alone. In fact, there is the Common Fund, there is Internally Generated Funds (IGF), there are several funds, there are bonds— [Interruption] The Majority Leader is the Leader of the House, I beg him. For Common Fund, the formula of expenditure is passed in this House, but the others are not. So, there is a need for the Minister in consultation with the Minister for Finance to give guidelines as to how IGF and bonds can be spent. Otherwise, the assemblies would just spend it anyhow. That is what they are talking about. But for Common Fund, it is Parliament that directs the assemblies as to how to spend. That authority is given by Parliament—

Mr Speaker, all I am saying is that the issue raised by the Member is very serious. That the powers of Parliament are eroded by a new directive that is at variance with what we passed in this House. What do we do? Are we supposed to let it pass, set a precedent, or pretend that we did not see anything wrong with it? That is the crux of the matter.