The Internal Audit Office and the Local Governance Advocacy Center have published the 2023 Public Financial Management Compliance League Table for city, city and borough councils to rank and assess the misappropriation of funds and resources by MMDAs across the country. has been launched.
The 2023 Public Financial Management Compliance Ranking Table ratings are based on the 2022 fiscal year. Out of 261 of his MMDAs in the country, only 11 crossed the 50% passing mark.
All six metropolitan councils scored above the national average of 22%, but fell short of the passing score of 50%.
In its 2022 report, the Audit Office noted a 48% increase in fraud at the local government level. The Commissioner of Internal Audit, Dr. Eric Oduro Osae, said in an interview with Joy Business that the situation is very worrying and requires urgent attention.
“There is something going on within the system. If you look at the 261 councils, only 225 have submitted documents for assessment, so this is saying we are satisfied with the performance. What happens to the rest of the assemblies? We also noted that only 11 companies passed the serious 50% mark, which is about 4% of local authorities.”
“So if only 4% have a good financial management system, that’s something we should be concerned about,” he said.
Dr. Oduro Osae also called for the strengthening of management systems at the local government level to improve the management of public funds in order to send a positive signal to the International Monetary Fund regarding Ghana’s request for assistance.
Senior Development Planning Officer Samuel Seth Passer, who represented Local Government Minister Dan Botwe, called for sanctions to be imposed on poorly performing MMDAs to strengthen compliance.
PFM league tables are expected to ultimately bring discipline to public institutions, reduce corruption, and improve transparency and accountability.
The MMDA was called upon to be more accountable in its use of public funds in order to provide effective and efficient services to the public and fulfill its legally mandated mandate.
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