The First Deputy Speaker of Parliament, Hon Freddie Blay has ruled out any possibility for Members of Parliament (MPs) to review the District Assemblies' Common Fund (DACF) law towards baring themselves from taking a share of the Fund.

In his view, "It will be very difficult to convince MPs to make a change in the law" because some MPs need the fund to survive in the political arena.

The allocation of part of the DACF to MPs has been a source of controversy, mainly between District Assemblies (DAs) and MPs. This controversy was once more the focus of discussions at the 6th Public Agenda workshop on Decentralisation which was organised in Accra on Thursday. It was under the theme: "The MPS share of the District Assemblies' Common Fund and the Challenge of Development at the Grassroots."

Arguments revolved around the constitutionality or otherwise of allocating part of the Common Fund to MPs.

When discussions came to a crunch, Hon. Blay who is also the Convention People's Party's MP for Ellembele dared, "If it is unconstitutional, test it at the Supreme Court."

The 1992 Constitution of Ghana, in Article 252 provides that Parliament shall annually make provision for the allocation of not less than five percent (now 7.5%) of total revenues of Ghana to the District Assemblies for development; and the amount shall be paid into the District Assemblies Common Fund (DACF) on quarterly installments. This is reinforced by provisions in the Local Governments Act, 1993 (Act 462) and the District Assemblies Common Fund Act, 1993 (Act 455).

Article 295 (1) of the Constitution defines District Assemblies to include a Metropolitan and Municipal Assembly whereas a District is defined by the Local Government Act, Act 462 of 1993 as "meaning the area of authority of DA and includes a municipality and Metropolitans."

Although the above definitions do not mention constituencies which are the domain of MPs, the 2007 DACF Utilization Guidelines mandates that 10% of each MMDA's share of the DACF to be retained as a Reserve Fund. Out of the 10% "Reserve Fund", the "MPs' Parliamentary Constituency Fund" constitutes 6%.

Consequently, the legality of the guidelines, developed by the Ministry of Local Government, Rural Development and Environment (MLGRDE) in collaboration with the Ministry of Finance and Economic Planning (MOFEP) in accordance with Section 9 of the DACF Act 1993, Act 455 has also come under scrutiny with a call for its abolition.

The argument is that the intention of the Constitution with regards to the DACF is clear; the DACF is meant for DAs and not MPs.

However, Hon Blay contested at the forum that if there are any arguments over the allocation, they should be advanced with regards to accountability. According to him, "The issue is accountability."

In his opinion, more legitimate questions about whether the MPs are using the funds efficiently and transparently to execute projects that are of prime importance to the people should be asked, rather than arguing over whether or not it is constitutional to allocate part of the fund to MPs.

Hon. Modestus Ahiable, a former MP stated, "I am clear in my mind that the money is meant for development." According to him, elsewhere, MPs are involved in development and that can be replicated here in Ghana.

He pointed out that in any case, the allocations are made into the accounts of the DAs and not the direct accounts of MPs. Furthermore, the MP only identifies a project for execution and the Finance Department of the DA makes payments against the project.

He stated, "It is a fact that other persons other than the Assemblies do spend part of the Fund on behalf of the Assemblies. If it were so why is that of the MPs so disturbing to some people?"

Nonetheless, he noted, "It is advisable to alert the Parliament that the moral issues are so strong that no matter the impact this fund is making in the lives of the people a second look should be taken.

"As a very important arm of government, Parliament should consider a move to allocate to MPs a percentage of the national revenue to replace their share in the contingency fund," he advocated.

Mr. George Kyei Baffour, Chairman for the occasion and former President of the National Association of Local Authorities of Ghana (NALAG) emphasized that MPs’ continued access of part of the DACF is unacceptable.

According to him, the current situation whereby MPs are themselves part of the development institution (DAs) and are themselves the development institution is undesirable. This is a resemblance of conflict of interest.

Supporting his position, Mr. Eric Oduro Osae, Lecturer, Institute of Local Government Studies (ILGS) said, “I am of the view that, MPs as part of the Assemblies are not and should not be allowed to have access to an independent fund that runs alongside the assemblies' development activities.”




Source: Public Agenda