The Chamber of Local Governance (ChaLoG) has called on government to ensure the prompt release of the District Assemblies Common Fund (DACF) to enable Metropolitan, Municipal, and District Assemblies (MMDAs) execute development projects without unnecessary delays or cost escalations.
According to the Chamber, persistent delays in disbursement undermine Ghana’s decentralization agenda, stall capital projects, and inflate contract costs due to variations in pricing.
In interaction with the media, President of ChaLoG, Dr. Richard Fiadomor, warned that the irregular release of the DACF disrupts planning and often forces assemblies to resort to alternative funding sources to complete abandoned projects.
“The delays are a problem. In 2024, not even a dime was paid to the districts. So, projects that were supposed to be done at that time had to be postponed, and when the funds finally come, the cost of those projects is going to go up.
The more the delay, the more there are variations in the projects. Because the common funds are supposed to be used for capital development, it affects the districts because at the time the funds are released, the money cannot be used for what it is meant to be used for,” Dr. Fiadomor explained.
Responding to calls for a fixed quarterly disbursement timetable, he stressed that the Common Fund Administrator cannot guarantee payments since releases depend on the Ministry of Finance. He therefore emphasized the need for systemic reforms to ensure predictable and timely funding.
“The reason why the central administrator cannot give a fixed timetable is that he too has to wait for the central government to pay the 5% to the fund. So even if he projects to release the funds on a quarterly basis, it will be contingent on the release by central government,” he added.
