The Public interest and Accountability Committee (PIAC) has revealed that the District Assembly Common Fund (DACF) did not received any disbursement in the first half of 2021.
According to PIAC, funds to be allocated to DACF, as a result of the Supreme Court’s decision on the budgeted Annual Budget Fund Amount (ABFA), was not disbursed.
“An amount of GH¢ 129.26 million, representing 5 per cent of the budgeted ABFA, was allocated to the DACF, following the decision of the Supreme Court of Ghana in the case of Kpodo, MP and Another verses the Attorney-General.
“Notwithstanding the allocation, there was no disbursement to the DACF in the first half of the year.”
Public interest and Accountability Committee
These findings were disclosed by PIAC in its Semi-Annual Report on the management and use of Ghana’s petroleum revenues for the first half of 2021.
Meanwhile, the report stated that instead of withdrawing from the Ghana Stabilisation Fund (GSF), the Government utilised an amount of GH¢ 40.17 million from the Treasury Main Account to shore up the ABFA in the first quarter.
Also, the Ghana Infrastructure Investment Fund (GIIF), as the report states, has been reinstated to receive funding from petroleum revenue.
“The Earmarked Funds Capping Realignment Act, 2017, which discontinued allocations to GIIF for infrastructural development has been amended to restore petroleum revenue funding to GIIF.”
Public interest and Accountability Committee
The PIAC semi-annual report
This report as disclosed by the committee is in “fulfilment of Section 56 of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815)”.
The Committee, since its establishment in September 2011, has exercised its oversight responsibility of monitoring and evaluating the management of Ghana’s petroleum resources by the government and stakeholder institutions.
In compliance with provisions of the Petroleum Revenue Management Act (PRMA), 2011, the Committee prepares statutory Semi-Annual and Annual Reports.
These reports, PIAC unveiled, aim at keeping Ghanaians and other interested stakeholders regularly informed about the management and utilisation of the country’s petroleum revenues.
The 2021 PIAC Semi-Annual Report covers the period January to June and encompasses a broad range of issues associated with petroleum revenue management such as information on production.
These issues also include liftings, total revenues accrued and allocated by Government, ABFA utilisation and the management of the Ghana Petroleum Funds, Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF)).
Recommendation by the committee
PIAC reiterated its recommendation in previous reports that the Minister for Finance should grow the GSF to position it to better serve its purpose of shoring up ABFA expenditure when there are revenue shortfalls in the Budget.
Also, PIAC recommended to the Ministry of Finance that, there is the need for the Supreme Court decision on funding of the DACF with petroleum revenues to find expression in the PRMA.
This, the report disclosed is being reviewed, with the necessary provisions as was the case with the ABFA and GIIF.
As disclosed by PIAC, this recommendation will enhance direct implementation and monitoring of ABFA-funded projects at the Subnational level.
“It is the expectation of the committee that the public will find time to read the report and provide feedback during the PIAC public engagements and also reach out to the Secretariat via its various contacts, including social media channels.”
Public interest and Accountability Committee
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