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Statutory Funds Frozen While Taxes Rise – Minority Calls Out Mahama for ‘First-Year Fiscal Deception’

Prosper AGBENYEGA by Prosper AGBENYEGA
May 22, 2025
Reading Time: 4 mins read
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The Minority in Parliament is raising red flags over the non-payment of key statutory funds nearly six months into the tenure of President John Mahama’s administration, describing the delay as unlawful and detrimental to local governance and essential services.

Addressing a press conference in Parliament on Thursday, Minority Chief Whip and Member of Parliament for Nsawam-Adoagyiri, Frank Annoh-Dompreh, accused the government of flouting provisions of the Local Governance Act and other statutory obligations by failing to release the District Assemblies Common Fund (DACF), GETFund, National Health Insurance Fund, and other constitutionally mandated disbursements.

“It is surprising that for all these almost six months, out of the allocation of 7.7 billion [cedis], not even a penny has gone to the assemblies,” Annoh-Dompreh declared.

“First of all, it is in breach of Act 936 of the Local Governance Act. You also do know there has been a court ruling that these payments should be done quarterly.”

Citing specific provisions in the 2024 budget, the MP noted that item 388 allocates over GH¢7.5 billion to the DACF, yet the Assemblies remain starved of funds.

“The whole of this year, not even a penny has been paid,” he emphasized. He also revealed that the newly appointed Common Fund Administrator was “sitting idle,” and confirmed that checks at the fund secretariat and other relevant institutions proved no releases had been made.

Beyond the DACF, Annoh-Dompreh expressed alarm at the government’s failure to release funds allocated to other critical statutory bodies:

“There is also the Health Fund—specifically the NHIA. An allocation of some GH¢9.92 billion was made. My check tells me no amount has been paid,” he stated. “Then there’s GETFund. A GH¢4.1 billion allocation was made. Again, nothing has been paid.”

Parliament, too, has not received its second-quarter releases. “Even before we started this press conference, I checked on accounts. Nothing has been paid,” he added.

Annoh-Dompreh said the Minority cannot remain silent as these violations persist, stressing that these statutory funds are “the oxygen” for assemblies to function.

“You cannot cite any reason as a defense. You can’t say that because we have not confirmed DCEs, therefore Coordinating Directors or Regional Ministers cannot act. We do not understand,” he said. “It’s mandatory. It’s backed by law.”

He further criticized Finance Minister Dr. Cassiel Ato Forson, saying the least he can do is ensure the laws are respected.

“Everybody’s pointing fingers at the Finance Minister. The framers of our laws in their wisdom tagged these payments as statutory because they relate to basic necessities of life—health, education, local governance,” he said. “And once they are statutory, they must be respected.”

Mounting Public Burden Amid Rising Taxes

The Minority Whip expressed bewilderment at the government’s inability to meet its financial obligations despite introducing a raft of tax measures.

“Don’t forget, the Growth and Sustainability Levy was increased from 1% to 3%. VAT on non-life insurance has also been increased,” Annoh-Dompreh noted.

“You’ve introduced taxes, you’ve collected these taxes, and yet you are flouting the statutory payments the law mandates you to pay.”

He accused the Mahama-led administration of deliberately holding back on expenditure to create an artificial impression of sound fiscal management.

“Is it the case that we want the books to look good, the cedi to look strong, and therefore we won’t spend?” he asked rhetorically. “I find this very unfortunate. We are sounding a note of caution.”

Broader Implications

He stressed the real-life impact of the government’s inaction, saying the delay is undermining services for the vulnerable.

“Persons with disabilities, poverty reduction, boreholes, support to farmers, needy but brilliant children—these are what the common fund supports,” he said. “The effect is broad, far-reaching, and grinding.”

Annoh-Dompreh also raised concerns over the non-payment of the Social Investment Fund (SIF), another statutory allocation meant to bolster social welfare initiatives at the district level.

“Not even a penny has been paid. And I challenge them. The provisions, the allocated funds, are all in the budget,” he asserted.

“The Evil of First Year Governance”

The MP suggested that the government is taking advantage of the initial goodwill granted it by the public.

“They are doing all the evil things in their first year while they still enjoy goodwill,” he said. “But statutory payments cannot be categorized as one of your evil deeds.”

“This cannot be entertained,” he warned. “We will continue to speak to the issues and raise the concerns. It’s about the welfare of our people. It’s about the breach of our laws. And it’s not for nothing that these laws were passed—they are passed to be respected.”

Tags: 'First-Year Fiscal Deception'FrozenMahamaStatutory FundsTaxes Rise
Prosper AGBENYEGA

Prosper AGBENYEGA

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