Naa Torshie Promises Transformation Of DACF
Madam Irene Naa Torshie Addo, the nominee for the position of the Administrator of the District Assemblies Common Fund (DACF), has proposed a new measure to resolve challenges facing the payment of the assemblies’ fund.
According to her, should Parliament give her the nod, she would consult the House to allow her borrow from banks to end the recurrent challenge of the delay in the payment of the assemblies' share of the Common Fund.
Appearing before the Appointments Committee of Parliament yesterday, the former member of Parliament (MP) for Tema West, indicated that if there was extensive lobbying and borrowing from banks, issues about delay in payments would be a thing of the past.
Responding to a question from the MP for Odododiodioo constituency, Mr Nii Lante Vanderpuje, on how she would ensure there are no delays in the payments of the DACF, Madam Naa Torshie stated that she would lobby Parliament to allow her borrow from banks to settle that.
“I intend, among other things, to lobby Parliament on that. I have some proposal that I intend bringing to Parliament. For example, I'm looking at a system where Parliament will allow me, if I'm given the nod to borrow money from banks; if not all of it, part of it.
“I will be knocking on your doors; you have to help, if given the nod, to make sure the money comes in, and the right amount comes in. That is very important…
“If I'm given the nod, once we have the power to be able to invest some or part of the money for it to accrue some interest, I'm looking at, with the permission of my Minister, bringing certain proposals like this to Parliament to find out whether or not, in certain circumstances, just to keep the timelines so that there is no disappointment, so that they can plan and manage their areas…I'm thinking about innovative things like that; maybe being allowed at certain times to borrow money for them and pay when the fund comes in,” she added.
The question followed delays in the Common Fund disbursements to the assemblies over the years, affecting development at the district level, as the constitution demands that, at least, five percent of national revenue is to be allocated to the DACF for disbursement to the various assemblies
Naa Torshie Addo also stated that the government's one million dollar per constituency programme, could affect the formula for the distribution of the Common Fund.
“…Directly, it will not affect the formula, but as time goes on, it could affect the formula. When you look at basic needs, the districts that have more schools and hospitals are given less, while those who have less are given more. So, with the coming in of this money, if people build more schools, hospitals, among others, they get less of the DACF. But that is not to say that they should build more schools. It could affect it in the long-term,” she remarked.
Per the 2016 formula for the distribution of the District Assemblies Common Fund, 7.5% of the total national revenue is set aside into the fund and distributed to the 216 districts across the country.
Part of the fund is then disbursed directly to the District Assemblies, in accordance with the approved formula. This is referred to as 'direct transfers.'
The MMDAs use the funds for projects and programmes determined by their respective assemblies.
Meanwhile, Mad Irene Naa Torshie is certain this year’s implementation of the one million dollars per district government policy could affect the distribution of the DACF.
By Maxwell Ofori, Parliament House