A series of official letters has shed light on a dispute over Ghana’s District Assemblies Common Fund (DACF) that left millions of cedis undisbursed to local governments.
The documents, released by the Ministries of Local Government and Finance, reveal that funds earmarked for Metropolitan, Municipal, and District Assemblies (MMDAs) were fully approved and available—but were not released because of administrative inaction by the Common Fund office under Irene Naa Torshie.
In mid-2023, Local Government Minister Dan Botwe escalated concerns to President Nana Akufo-Addo after repeated attempts to secure disbursements failed. The letters describe how stalled fund transfers were preventing local officials from carrying out planned projects, affecting infrastructure, community programs, and essential services.
Even after a December follow-up, the Ministry received no action from the Common Fund Administrator. This prompted Finance Minister Dr. Mohammed Amin Adam to issue a stern reminder, highlighting that GH¢181 million intended for districts, plus additional allocations for DPAT VI programs, had not reached their destinations. The letter warned that continued delays could disrupt development work and threaten Ghana’s standing with international partners.
The repercussions extended beyond the districts. Development partners, including the Swiss Government, reportedly expressed hesitation in committing new grants worth CHF 22 million for upcoming projects, citing incomplete transfers from the previous cycle. The letters warn that Ghana risked losing critical external support due to the failure to release approved funds.
Politically, the issue has stirred controversy. While Irene Naa Torshie publicly claimed that the government blocked funds, the documents indicate that her office was the actual bottleneck, preventing districts from accessing resources needed for local development. Party members have criticized her actions, suggesting that stalled projects may have influenced voter sentiment in local constituencies.
These letters provide an official trail that contradicts public assertions and underscore the importance of timely fund disbursement to support local development.
