31.01.2008 Business & Finance

Assembly approves estimates for projects, including GH¢200,000 for bungalow

By Accra Mail
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The Obuasi Municipal Assembly (OMA) has approved the use of GH¢200,000 from the projected GH¢400,435 revenue from AngloGold Ashanti in property rates this year, to complete a new residency for the Municipal Chief Executive (MCE).

The approval followed a hot debate during discussions of the Assembly's 2008 budget estimates.

Whilst a section of the members argued that the amount was too much for the project and that part of the proposed expenditure should be used to fund the Obuasi Horsey Park stores project, others held that embarking on the residency project in phases would eventually raise its total cost and that the amount should be expended to complete it once and for all.In all, the assembly approved the amount of GH¢1,654,526 for capital and development projects, expecting to mobilised a chunk of the money from AngloGold Ashanti property rate, internally generated fund, mineral royalties, District Assemblies' Common Fund (DACF) and HIPC relief fund.

It is expected that the DACF alone would contribute GH¢1 million towards capital and development projects.

Most of the assembly members criticized the government's mandatory provisions in the utilization of the DACF. This year alone, it is estimated that the Assembly would lose GH¢475,000 from its share of the common fund on the mandatory provisions.

The provisions included human capacity building, National Youth Employment Programme, self-help projects, district education fund and scholarship scheme, support to sub-district structures and district response initiative on HIV/AIDS.

Others are malaria prevention, support for the physically challenged, sports and culture and contingency.

Mr Joseph Kwadwo Boampong, the Municipal Chief Executive, said the Assembly hoped to generate total revenue of GH¢2,373,098, out of which GH¢718,572 would be used for recurrent expenditure.

The assembly projected to mobilise GH¢881,820 from its internal sources in 2007, of which it collected GH¢866,898, representing 98.31 per cent.

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