Ghana lost GH¢66m due to irregularities committed by MMDAs in 2021

A total amount of GH¢66,130,366.12 was lost by the state from irregularities committed in 2021 by the Metropolitan, Municipal, and District Assemblies (MMDAs).

This is a revelation by the 2021 Auditor General’s report.

According to the report on the Management and Utilisation of the District Assemblies Common Fund (DACF) and other Statutory Funds for the year 2021, the irregularities bothered on violation of Laws, Regulations, and Guidelines, and also management override of internal controls instituted to ensure effective and efficient utilisation of resources.

The irregularities mainly included misappropriation, unaccounted funds, payment of judgment debts, overpayment of contract sums, and abandoned and completed projects not used.

The total irregularities decreased to GH¢66,130,366.12 compared to GH¢77,147,260.10 in 2020.

The report indicated that cash irregularities occurred at 102 Assemblies in the sum of GH¢7,511,747.85.

“They involved the application of earmarked funds on unrelated programmes, funds disbursed without accountability, misapplication of funds, overpayment of contract sums, and payment for services not rendered.”
“The Assemblies continued to rely on Common Fund and other earmarked funds for their recurrent expenditure due to inefficient mobilisation of internally generated funds.”

The report further noted that there were instances, where funds disbursed, were not supported with relevant supporting expenditure documents.

The report recommended the recovery of all misapplied funds from the Assemblies’ IGF accounts into the Common Fund accounts.

“We also recommended recovery of unaccounted funds, overpayments, and payments for services not rendered from the Coordinating Directors, Finance Officers, and other defaulting officers with
sanctions to make mismanagement of public funds unattractive.”
Find a breakdown of the infractions below;