GH C129.26m of ABFA allocated to District Assembly Common Fund yet to be disbursed – PIAC report

The Public Interest and Accountability Committee (PIAC) has disclosed that an amount of ¢129.26 million, representing 5% of the budgeted Annual Budget Funding Amount (ABFA), allocated to the District Assembly Common Fund (DACF), following a directive by the Supreme Court, have not been disbursed.

This was contained in the latest findings of the 2021 Semi-Annual Report of the Public Interest and Accountability Committee. 

The findings also found the government guilty of utilizing an amount of ¢40.17 million from the Treasury Main Account to shore up the ABFA in the first quarter, instead of withdrawing from the Ghana Stabilisation Fund (GSF).

“An amount of ¢129.26 million, representing 5% of the budgeted ABFA, was allocated to the DACF, following the decision of the Supreme Court of Ghana in the case of Kpodo and Another versus Attorney-General. Notwithstanding the allocation, there was no disbursement to the DACF in the first half of the year”, it explained.

The report also observed that the Earmarked Funds Capping Realignment Act, 2017, which discontinued allocations to GIIF for infrastructural development has been amended to restore petroleum revenue funding to GIIF.

It reiterated its recommendation in previous reports that the Minister for Finance should grow the Ghana Stabilisation Fund (GSF) to better position it to serve its purpose of shoring up Annual Budget Funding Amount (ABFA) expenditure when there are revenue shortfalls in the Budget.  
 
The PIAC recommended to the Ministry of Finance that, there is the need for the Supreme Court decision on funding of the District Assembly' Common Fund (DACF) with petroleum revenues to find expression in the Petroleum Revenue Management Act (PRMA), which is being reviewed, with the necessary provisions as is the case with the ABFA and Ghana Infrastructure Investment Fund (GIIF). 

According to the PIAC, this will enhance direct implementation and monitoring of ABFA-funded projects at the Subnational Level. 

It stressed that it is the expectation of the Committee that the public will find time to read the Report and provide feedback during PIAC public engagements and also reach out to the Secretariat via its various contacts, including social media channels.    

The Committee also urges the media to obtain a copy of the 2021 PIAC Semi-Annual Report from its website for further analyses of the issues raised. 
 
These recommendations are contained in the publication done on the website of PIAC www.piacghana.org. ok of the Semi-Annual Report on management and use of petroleum revenues for the first half of 2021

This is in fulfilment of Section 56 of the Petroleum Revenue Management Act (PRMA), 2011 (Act 815). 

Since its establishment in September 2011, PIAC has exercised its oversight responsibility of monitoring and evaluating the management of Ghana’s petroleum resources by the government and stakeholder institutions. 

In compliance with provisions of the Petroleum Revenue Management Act (PRMA) Committee prepares statutory Semi-Annual and Annual Reports, which aim at keeping Ghanaians and other interested stakeholders regularly informed about the management and utilization of the country’s petroleum revenues. 

Since its establishment in 2011, the Committee has published a total of 20 Reports –10 Semi-Annual and 10 Annual. 

The 2021 PIAC Semi-Annual Report is being published three weeks after the statutory date of 15th September, which is earlier than in the past. 

This was achieved as a result of the continuous collaboration between PIAC and its stakeholders, especially on the timely exchange of information. 

The 2021 PIAC Semi-Annual Report covers the period January to June and encompasses a broad range of issues associated with petroleum revenue management such as information on production, liftings, total revenues accrued and allocated by Government, ABFA utilization, and the management of the Ghana Petroleum Funds (Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF)).

 It also examines other issues pertinent to the performance of various institutions charged with responsibilities in the PRMA.  

The Committee notes with commendation the provision of ABFA utilization data by the Ministry of Finance for this Report, which has not been the trend in recent years.

 Freeman Koryekpor Awlesu Greater Accra Region