MMDAs mismanged GH¢70,173,645.97 in 2016 [Infographic]

The Management and Utilization of Common Fund and other statutory funds for the 2016 financial year are not significantly different from those of previous years. Management and staff of the Assemblies continued to violate rules and regulations, policies, procedures, and directives etc. which had been put in place to ensure the economic, effective and efficient management of public resources made available to MMDAs.

MMDAs are responsible for irregularities of GH¢70,173,645.97 for the year 2016 which represents a 32% rise of GH¢16,955,282.83 over the 2015 figure of GH¢53,218,363.14. The Auditor General Report (2016) revealed that; recurring internal control weaknesses and lapses under cash management, contract administration, procurement and stores management and tax administration are the major cause of these irregularities. However, most of the irregularities are due to cash management, about 47 % of monies that lost via the MMDAs is through cash management while the least is through tax administration (0.44 %).

Components of MMDA’s Irregularities

Irregularity	Amount (GH¢)	Percent (%)
Cash Management	32684459.2	46.58
Contract Management	26839675.97	38.25
Procurement & Store Management	10341200.67	14.74
Tax Administration	308310.13	0.44
Total	70173645.97	100

Refer to the infographic below for further details

 

 

 

 

 

 

 

Causes of the continuous increase in irregularities among MMDAs

• Poor attitude, interest, and dedication to duties and responsibilities
• Recurring internal control weaknesses
• Poor commitment on the part of the Ministry of Local Government and Rural Development and management of MMDAs in the implementation and enforcement of audit recommendations towards mitigating infringements of the laws.
• Non – imposition of sanctions to minimise the violations

Recommendations to curb/reduce irregularities among MMDAs

• Effective supervision and monitoring
• Enforcement of existing statutory and regulatory frameworks, together with the imposition of sanctions should be made paramount to curb the infractions.
• The Ministry of Local Government and Rural Development and management of the MMDAs to impose sanctions where necessary to serve as a deterrent to others.

Credit: Moro Seidu |  iWatch Africa