Ministry of Finance orders DAC to allocate GH¢181 million to beneficiaries of the Responsiveness Factor Grant

Finance Minister Mohammed Amin Adam has urged the Office of the District Assemblies Common Fund (DACF) to swiftly disburse the allocated GH¢181,837,022.00 to beneficiaries of the DACF-Responsiveness Factor Grant (RFG) for the District Performance Assessment Tool (DPAT) VI.

He expressed concerns over delays in fund transfers to the Metropolitan Municipal District Assemblies (MMDAs), citing potential risks to bilateral cooperation agreements and the Ministry’s goal of mobilizing resources for local development through decentralization.

In a statement dated February 27, 2024, Mr. Adam underscored the significance of these grant funds amid the country’s efforts to navigate an International Monetary Fund (IMF) program for fiscal consolidation and economic recovery.

He clarified that the Ministry received a letter dated December 12, 2023, from the Ministry of Local Government, Decentralization, and Rural Development (MLGDRD), requesting the DACF Office to allocate GH¢181,837,022.00; GH¢170,142,722.00 to the Sub-consolidated accounts of the MMDAs and GH¢11,694,300 to the DPAT Secretariat for DPAT VI activities.

He expressed worry over the delay in the beneficiaries receiving these funds, which is impeding the progress and effective functioning of the MMDAs.

Mr. Adam highlighted that a prerequisite for Development Partners (DPs) committing funds to the DACF-RFG was the prompt transfer of funds intended for the previous DPAT cycle (both GoG and DP contributions) to the MMDAs for their planned activities.

He noted that the ministry had received concerns from its development partners regarding the delayed transfer of funds to MMDAs, which jeopardizes current and future DP support to the DACF-RFG.

For example, the Finance Minister mentioned that the Swiss Government was hesitant to execute a new grant financing agreement of CHF22 million, including CHF6 million for DPAT VII activities in 2024, because the CHF4 million disbursed in December 2022, along with the corresponding Government of Ghana (GoG) contribution for DPAT VI activities in 2023, had not yet been transferred to the MMDAs.