An audit findings have revealed that the management of the Kumasi Metropolitan Assembly (KMA) during the year 2020 disbursed GH¢683,386.57 in excess of the limit of 20% of their District Assembly Common Fund allocations on administration expenditure.
The Assembly disbursed GH¢1,519,812.63 on administration instead of 20% of GHC 827,426.06 thus incurring excess of GH¢683,386.57 over disbursement on administration.
It explained that the said disbursement was contrary to the guidelines issued by the Ministry of Local Government and Rural Development for the utilisation of the fund.
The report, issued after the management of the KMA, had failed to respond to queries from the findings as required by law, recommended that the Metro Coordinating Director, Mr. Akuamoah Boateng and the finance officer, Mr. David Abbam Adjei should transfer the total
amount of GHC683,386.57 from the Internally Generated Fund (IGF) account to the District Assembly Common Fund (DACF) account to fund development of the Metropolis.
The audit inspection has also disclosed that GH¢670,720.78 from KMA’s Development Fund was used for the payment of judgment debts, contrary to Section 7 of the Public Financial Management Act 2016 (Act 921),which stated that a principal spending officer of a covered entity shall ensure the regularity and proper use of money appropriated in that covered entity.
The auditors noted that the KMA management used the DACF allocations to settle judgment debts totaling GH¢670,720.78 to four contractors namely Kerecom Co. Limited, Sapso Construction Limited, Saboabu Enterprise and Osbon Enterprise after it (KMA) had defaulted in the payment of contractual debts, which culminated in legal actions.
The report noted that the excess use of DACF on recurrent or administrative expenditures denied the citizenry infrastructural projects and attributes the ensuing Development to lack of effective control to curtail expenditure and the availability of funds in the DACF.
Meanwhile, the KMA management, in reacting to previous publication by The Chronicle, regarding the audit findings has said the management letter from the Audit Service remains confidential.
In a terse press release signed by Henrietta Afia Konadu Aboagye, the Public Relations officer on behalf of the Chief Executive Officer of the KMA stated that, “for Audit purposes the management letter still remains confidential until management has fully responded to the
observations made and the Auditor-General has published the final Audit report”.
Meanwhile,Ernest Best Anane reports that the KMA has been selected as one of 50 champion cities in the 2021 Global Mayors Challenge competition.
Mr. Osei Asibey Antwi, the Mayor of Kumasi, who announced this at a Town Hall meeting towards the preparation of the 2022-2025 Medium Term Development Plan, said the selection of Kumasi by Bloomberg Philanthropies as one of 50 champion cities means that the city of Kumasi stands the chance of winning US$ 1 million come November, 2021 should they sustain the hard work they invested in the preparation for the proposal.
He disclosed that, it is an indication that management’s continuous engagements with Assembly members in fashioning out solutions to common problems are laudable and not time wasting.
The Mayor explained to the gathering that Section 82 of the Local Governance Act, 2016, Act 936 designates MMDAs as planning authorities for their areas of authority for the purposes of national economic planning which gives power and authority to the Metropolitan,
He stated that, the Kumasi Metropolitan Assembly is in the process of preparing its MTDP 2022-2025 Medium Term Development Plan,based on the National Medium Term Development Policy Framework titled “An Agenda for Jobs, Creating Prosperity and Equal Opportunities for all,”prepared by the National Development Planning Commission and based on the Government’s Coordinated Programme of Economic and Social Development.
The KMA boss underscored that he is aware that the Metropolitan Planning Coordinating Unit (MPCU), the Planning Task force, as part of the development planning processes has undertaken extensive community consultation at the Town Council level to seek inputs from the citizens, with regards to their key development challenges and aspirations and to create community ownership and support for the implementation of the plan.
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