Ghana's Auditor-General has identified financial breaches amounting to GHS12.9 million at the District Assembly Common Fund (DACF). This significant finding, detailed in the Auditor-General’s 2025 report, highlights critical lapses in the management of public funds intended for local development projects.
The irregularities primarily involve two major issues. First, GHS10.7 million was paid as advance mobilization for 13 contracts across various districts, but these projects have experienced delays ranging from 13 to 60 months. Second, the DACF Administrator awarded a GHS2.2 million contract to Lampas Company Limited, exceeding the GHS100,000 approval threshold without referral to the Central Tender Review Committee.
These breaches underscore persistent challenges in Ghana's public financial management system. The Public Financial Management (PFM) Act, designed to ensure prudent use of state resources, was violated by the advance payments. Such actions undermine value for money and delay essential infrastructure and services for citizens. This situation is not isolated, as previous Auditor-General reports have often highlighted similar issues across various state institutions, pointing to a systemic problem in adherence to financial regulations.
The Auditor-General's report specifically condemned the GHS10.7 million in advance payments. It stated that these payments undermined value for money because funds remained unutilized for extended periods. The report also noted that the contracts and advance mobilization securities had expired, exposing the funds to non-recovery and potential loss. For the GHS2.2 million contract, the Auditor-General recommended holding the Administrator liable for any losses due to the procurement breach.
Looking ahead, the Auditor-General recommended that the Common Fund Administrator assess the status of the 13 delayed contracts. The Administrator must also ensure the recovery of funds where projects cannot be implemented. This situation will likely intensify calls for stricter enforcement of public financial management laws and greater accountability from public officials. Decision-makers and civil society organizations will closely monitor the government's response to these findings and any subsequent actions taken against those responsible.
The GHS2.2 million contract awarded to Lampas Company Limited was for digital data services. These services were meant to support evidence-based decision-making for DACF-funded projects. The contract included software setup, staff training, and data collection costs. GHS1.3 million of this contract sum has already been paid, despite the procedural breach. The Auditor-General emphasized that non-compliance with procurement law compromises transparency, fairness, and value for money.
Major Ashirifie, a financial expert, commented on the Auditor-General’s report. He stressed the need for annual assessments of how public funds are utilized by Ministries, Departments, and Agencies (MDAs). Major Ashirifie urged Civil Society Organizations to pressure the government to enforce public financial management laws. He also criticized the practice of ratifying procurement processes only after they are flagged by the Auditor-General, advocating for its abolition. He stated, "We need to clear that thing. It’s not working. We need to emphasise that ratification is not working. You have to do the right thing now, or you face the consequences."
The lack of response from the District Assemblies Common Administrator, Michael Harry Yamson, when contacted by The Fourth Estate, further complicates the situation. This silence raises questions about transparency and accountability within the institution. The public will expect clear answers and decisive action to prevent future financial irregularities and protect taxpayer money.