Assemblies paid GH¢22.4m to revenue collectors who generated only GH¢10.26m – Audit reports

Auditor-General’s reports covering the past five years have revealed major inefficiencies in revenue mobilisation at several metropolitan, municipal and district assemblies (MMDAs), with some assemblies paying revenue collectors more in salaries than the funds they generated.

An analysis of the reports found that between 2021 and 2025, MMDAs spent a total of GH¢22.4 million on salaries for revenue collectors, while the officers mobilised only GH¢10.26 million from property rates, licences, fees, and other internally generated revenue sources.

The audit reports on the Accounts of District Assemblies indicated that in several cases, individual revenue collectors received annual salaries ranging between GH¢50,000 and GH¢90,000 but generated only between GH¢6,000 and GH¢40,000 in revenue.

The situation, according to the Auditor-General, violates Section 52 of the Public Financial Management Act, 2016 (Act 921), and raises concerns about value for money in public expenditure, as assemblies continue to incur avoidable losses through ineffective revenue collection systems.

Despite repeated recommendations from the Auditor-General to correct the trend, many affected assemblies have failed to implement measures to improve efficiency, with some continuing to retain collectors whose earnings far exceed the revenue they generate.

The affected assemblies included Asunafo South, Berekum, Dormaa Central, Berekum West, Dormaa West, Talensi, Builsa South, Jomoro, Adansi Asokwa, Asokore Mampong, Kumasi Metropolitan Assembly (Manhyia South Sub-Metro), Sekyere Central, Dormaa East, Banda, Nkoranza South, Pru West, Bodi, Mampong, Kwadaso, Atwima Kwanwoma, Kumasi Metropolitan Assembly (Subin Sub-Metro), Nhyiaeso Sub-Metro, Upper Denkyira East, Agona West, Abuakwa South, Aowin, Afigya Kwabre South, Ahafo Ano North and Ahafo Ano South East.

Other assemblies cited in the reports were Amansie Central, Bosomtwe, Old Tafo, Suame, Awutu Senya, Twifo Hemang Lower Denkyira, Fanteakwa South, Upper West Akim, Chereponi, Kpandai, Gushegu, Garu, Amenfi West, Sefwi Wiawso, Twifo Atti Morkwa, Assin Fosu, Assin South, Agona East, Asikuma-Odoben-Brakwa, Mfantseman, Ajumako-Enyan-Essiam, Yilo Krobo and Abuakwa North.

The remaining assemblies were Atiwa West, Ayensuano, Kwahu East, Kassena-Nankana, Bongo, Bawku West, Nabdam, Bibiani-Anhwiaso-Bekwai, Juaboso, Bia East, Sefwi Akontombra, Upper Denkyira West, Abura-Asebu-Kwamankese, Effutu, Nsawam-Adoagyiri, Suhum, Afadzato South, Ketu South, Kpando, Shama and Suaman.

The audit findings showed that in 2021, 163 revenue collectors across 31 assemblies received GH¢3.04 million in salaries but generated only GH¢1.63 million, creating a shortfall of GH¢1.41 million.

In 2022 and 2023, the problem persisted, with collectors in 22 and 13 assemblies respectively generating only 55.02 per cent and 43.68 per cent of the salaries paid to them. The resulting shortfalls were GH¢1.49 million and GH¢1.34 million respectively.

The situation worsened in 2024 when 245 collectors from 55 assemblies were paid GH¢11.74 million but mobilised only GH¢4.78 million, leaving a deficit of GH¢6.96 million — the highest recorded during the period.

Although the number of affected assemblies dropped to 14 in 2025, inefficiencies remained, with 55 revenue collectors receiving GH¢2.84 million in salaries while generating only GH¢1.49 million, resulting in an excess cost of GH¢1.35 million.

The findings have renewed calls for reforms in local revenue mobilisation systems, with experts arguing that stronger monitoring, accountability and performance-based mechanisms are needed to ensure public funds are used effectively.

A tax practitioner and lawyer, Albert Kungmaa Ziem, told the media in Accra that the situation represented a breach of a basic principle of tax administration, which requires the cost of collecting revenue to remain lower than the amount collected.

He described it as economically unjustifiable for assemblies to spend more money collecting revenue than they eventually receive.

“If the state has to spend GH¢22.4 million to collect GH¢10.26 million, then administratively it is very irregular. The state would have been better off allowing the people to keep that money rather than spending more to collect less,” he said.

Mr Ziem argued that the challenge was not a lack of revenue opportunities at the local level but weaknesses in monitoring and accountability.

“I don't think there is no revenue to be collected. The issue is monitoring and accountability. The possibility is cash suppression because much of the cash collected is not properly accounted for,” he added.

He called for improved training, stronger supervision and merit-based recruitment of revenue collectors to address persistent challenges.

“We should train and retrain the revenue collectors, recruit the right people based on competence instead of nepotism, and strengthen monitoring. If we do that, many of these infractions can be eliminated,” he said.

Mr Ziem also urged assemblies to adopt digital revenue collection platforms and introduce performance-based incentives to reduce leakages and improve collections.

“We have simple technologies that can transmit payment information instantly to the office, making it difficult to suppress revenue. Assemblies should also consider commission-based incentives so collectors are rewarded based on what they mobilise rather than fixed salaries,” he explained.

President of the Chamber for Local Governance (ChaLoG), Dr Richard Fiadomor, also attributed the recurring problem to weak incentives within the revenue collection system.

He said many collectors lacked motivation because their salaries were guaranteed regardless of their performance.

“If the structure were such that the more you collect, the higher the percentage you get under a commission system, the situation would have been different.

“But currently, the revenue collectors do not see themselves as direct beneficiaries of the revenue they collect, and that is why they do not give of their best,” he said.

Dr Fiadomor suggested that assemblies should explore the use of private revenue collectors, as permitted under existing local government laws, to improve accountability and efficiency.

He further called for stronger supervision from central government and reforms that would make metropolitan, municipal and district chief executives more accountable for revenue performance.

“If the central government had taken these audit findings seriously, we would not have seen the same irregularities recurring from 2021 to 2025.

“Elected chief executives would treat revenue generation as a priority because they would be directly accountable to the people who voted for them,” he added.