An audit conducted by the Ashaiman Municipal Assembly (ASHMA) has revealed that the immediate past Municipal Chief Executive (MCE), Ibrahim Baidoo, left over GH₵17 million debt.
The assembly is currently facing financial challenges owing to the development.
“Looking at the financial picture, one can tell that all is not well with the assembly. It is therefore my candid opinion that the trend of spending what we do not have must stop,” he stated.
According to the newly elected MCE, Albert Boakye Okyere, the former MCE in his handing over notes, as at December 31, 2016, put the total debt stock at GH₵17,106,858.16 compared to zero debts his predecessor inherited.
The breakdown of the assembly’s indebtedness was given as: District Assembly Common Fund (DACF), GH₵4,647,175.72; District Development Fund (DDF)/Public Private Partnership (PPP), GH₵72,188.30; Urban Development Grant (UDG), GH₵853,755.03; the Greater Accra Metropolitan Area (GAMA), GH₵10,548,839.11 and the Internally Generated Fund (IGF), GH₵984,900.00 – all totaling GH₵17,106,858.16.
According to Mr Boakye Okyere, the commitments had been reduced to GH₵14,725,255.82 as at June 2017.
He further added that the reduction in the portfolio was due to some payments that were made during his period in order to reduce the debts.
Giving the breakdown of some payments, the MCE indicated that the aforementioned debts had been reduced to the following: DACF, GH₵4,284,887.35; DDF/PPP, GH₵142,837.79; UDG, GH₵1,370,778.09; GAMA, GH₵8,857,940.09 and the IGF, GH₵267,812.50, which sum up to a total of GH₵14,924,255.82.
Mr. Boakye Okyere made the revelation during his sessional address at the Ordinary Assembly Meeting held at the assembly in the Greater Accra Region.
According to him, the total revenue generated as at May 31, 2017 stood at GH₵2,465,273.07, representing 11.11% of the annual budgeted revenue of GH₵ 22,198,447.20.
The MCE further added that the actual expenditure for the same period amounted to GH₵3,611,200.55, representing 16.27% of a budgeted figure of GH₵22,188,447.20.
According to Mr Boakye Okyere, the assembly has great potential to mobilize internal revenue to support the provision of socio-economic infrastructure, adding that strategies would be put in place to update the ratable items in the municipality to improve revenue collection.
The MCE revealed that critical evaluation would be conducted to determine components of revenue sources to be out-sourced to the private sector for collection.
He said the debt which has been left by his predecessor had hindered the assembly’s vision, but promised to make Ashaiman, a modern 24-hour sprightly city by 2025.
<<Print>>