The Chamber of Local Governance (ChaLoG) has called on government to ensure the timely release of the District Assemblies Common Fund (DACF), warning that persistent delays are crippling development projects across Metropolitan, Municipal, and District Assemblies (MMDAs).
President of ChaLoG, Dr. Richard Fiadomor, said prolonged disbursement gaps force projects to stall for months, only to resume at inflated costs.
“In 2024, not even a dime was paid to the districts. Projects that were supposed to be done had to be postponed, and when the funds finally come, the cost of those projects is going to go up,” he noted.
He stressed that irregular releases undermine Ghana’s decentralization agenda, delay capital projects, and drive up contract costs due to price variations.
“The more the delay, the more there are variations in the projects. At the time the funds are released, the money cannot be used for what it is meant to be used for,” Dr. Fiadomor said.
On calls for a fixed quarterly disbursement schedule, he explained that the Common Fund Administrator is unable to guarantee payments since releases depend on the Ministry of Finance.
“He too has to wait for the central government to pay the 5% to the fund. Even if he projects to release the funds quarterly, it will be contingent on the release by central government,” he added.
