The Coalition of District Assembly Members has accused third parties of mismanaging and misappropriating property rate revenue collected on behalf of assemblies across the country.

The Coalition claimed that the Ghana Revenue Authority (GRA) and Digital City Solutions (GCS), which were allegedly contracted without proper authorization to levy and collect property rates, have not adhered to the terms of their agreement.

Consequently, the Coalition submitted a petition to the Office of the Special Prosecutor (OSP), urging an investigation into the collection and disbursement of property rates by these third parties from early 2023 to the present.

Speaking on behalf of the Coalition, Mawunyo Agbe, also requested an audit of the accounts to ensure transparency.

“We are formally requesting the Office of the Special Prosecutor to initiate a thorough investigation
into the total property rate revenues collected by GRA and DCS, and scrutinize how these funds are allocated to the Assemblies.
“According to section 144 of the Local Governance Act, 2016 [Act 936], District Assemblies are the sole authorities for levying property rates. The involvement of GRA in this process seems to contradict this provision, raising legal and procedural concerns concerning the involvement of the third party in revenue collection”.
Mawunyo Agbe

Mr. Agbey pointed out that Section 146 (1) of the Local Governance Act, 2016 [Act 936] states, “A District Assembly may appoint any person or company as an agent to collect rates on behalf of the Assembly, in accordance with conditions prescribed by the Assembly.”

He emphasized that this provision has not been met by any Assembly in the country, highlighting a significant oversight in the management of property rate collections.

To comply with this requirement, the Coalition indicated that, there must be a resolution from the General Assembly or an agreement made by the General Assembly to delegate the collection of property rates to a third party.

Outsourcing Property Rate Collection to Improve Efficiency

Furthermore, Mr. Mawunyo Agbe explained that Section 146 (1) of the Local Governance Act, 2016 allows District Assemblies to outsource the collection of property rates to private entities or third parties, enhancing the efficiency of revenue collection.

As a result, the agreement was deemed illegal for the Municipal and District Chief Executives to sign on behalf of the Assemblies.

He also pointed out that the third parties have failed to deposit the agreed 70% of the revenue collected between early 2023 and 2024 into the designated bank accounts of the Assemblies.

He added that “checks so far have revealed irregularities and non-compliance by the GRA and DCS with the illegal agreement.”

“The financial challenges facing the Metropolitan, Municipal, and District Assemblies are urgent and require immediate action since this action seems to be a looting system that crippled the assemblies to be financially on their knees.
“Ensuring proper management and distribution of property rate revenues collected by GRA and DCS is critical for the effective operation of these local bodies and the well-being of the communities they serve. We trust that the Special Prosecutor’s office will address this matter with the urgency”.
Mawunyo Agbe

Mr. Agey highlighted the financial mismanagement and misallocation of property rate revenue, which have led to significant financial constraints for the Assemblies.

According to him, these constraints are hindering their ability to effectively administer services and meet the needs of their communities.

Mr. Agbey noted that the Assemblies have been unable to pay the ex-gratia for the 8th Assembly Members due to these financial difficulties.

Additionally, he pointed out a troubling lack of transparency, as there is minimal information available regarding the mobilization and disbursement of property rate revenues.

This, he indicated, raises concerns among stakeholders about the accountability and governance of financial resources.