Hon. Ahmed Ibrahim Advocates Strong _Oversight_ as MMDAs Receive Historic Transfers — Lessons from Indonesia’s Fiscal Reforms

The Minister for Local Government, Chieftaincy and Religious Affairs, Hon. Ahmed Ibrahim, has urged Metropolitan, Municipal, and District Assemblies (MMDAs) to apply strict fiscal discipline and transparency in managing the historic GHC25 million transfer allocated to each Assembly in 2025. He made the call during the National Capacity Building Programme on Leadership and Governance, IGF-ESG Frameworks, and Public Procurement Management held in Accra in June 2025.

The Minister explained that the move aligns with President John Dramani Mahama’s directive to strengthen local governance and ensure equitable development across districts. He noted that the 2025 allocation marks a significant break from past transfers, representing a direct release of at least 80 percent of the District Assemblies Common Fund (DACF) to the MMDAs, compared to previous years when less than 50 percent reached the Assemblies after central deductions.

Drawing parallels from Indonesia’s early 2000s “Big Bang” fiscal decentralisation, Hon. Ahmed Ibrahim cautioned that sudden large-scale fiscal transfers could lead to inefficiency, weak supervision, and corruption if not properly managed. He cited Indonesia’s experience, where increased transfers without adequate local capacity initially resulted in mismanagement and corruption before reforms later restored stability.

To prevent similar pitfalls, the Minister outlined key oversight measures including the development of utilization guidelines that preserve local autonomy, strengthening monitoring and evaluation systems, and empowering Regional Coordinating Councils (RCCs) to conduct spot checks. He further emphasized the need for Assemblies to report quarterly on the use of funds before additional transfers are made.

Hon. Ahmed Ibrahim also called for transparency through the regular publication of fund utilization reports and citizen engagement via newsletters and local newspapers. He stressed that any MMDAs found misapplying funds would face immediate sanctions to deter misuse and maintain public confidence in Ghana’s decentralisation framework.

He reminded Assemblies that the GHC25 million allocation does not replace their obligation to mobilize Internally Generated Funds (IGFs), but rather complements it. “Accountability must remain at the heart of our governance at all levels. Fiscal empowerment should go hand in hand with fiscal responsibility,” he said.

The Minister reaffirmed government’s commitment to ensuring that the historic transfers strengthen local governance, accelerate grassroots development, and deepen fiscal decentralisation without compromising integrity and accountability.

Source: Darling Maame Efua Cann
MLGCRA Public Relations Unit