Abstract

The establishment of the District Assembly Common Fund (DACF) in 1993 and concomitant percentage set aside for Members of Parliament (MPs) in 2004 aims to support local governments and legislators in pro-poor development activities in their communities and constituencies. In spite of the importance of the MPs’ share of the District Assemblies Common Fund (MPsCF) in financing local level development in Ghana, very little is known about monitoring systems and procedures on the disbursement and utilization of the funds. The study therefore assessed qualitative data derived from interviews with officials from selected Local Government Authorities (LGAs) as well as other key stakeholders in the disbursement and utilization of the fund. The study findings point to the absence of legislative instrument on the management of the MPsCF. Further, monitoring of the fund was a responsibility shared by the LGAs and other external stakeholders. Finally, the effectiveness of monitoring the disbursement and utilization of the MPsCF was strongly influenced by the relationship between the Chief Executive of the Local Government Authority (LGCE) and MPs in the local government area.

Highlights

  • Ghana has a multiparty Parliament which has a deliberative, legislative, resource allocation, monitoring and lobbying role

  • This study focuses on the extent to which internal control systems within Local Government Authorities (LGAs) have impacted the management and utilization of the MPsCF

  • The MPs' share of the District Assembly Common Fund (DACF) plays an important role in local economic development in LGAs in Ghana

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Summary

Introduction

Ghana has a multiparty Parliament which has a deliberative, legislative, resource allocation, monitoring and lobbying role. Whilst there are competing values and interests among the parties in Parliament, there appears to be broad bipartisan consensus over pro-poor policymaking and implementation. This notwithstanding, different parties in parliament have different policy options and strategies in the fight against poverty. With the majority of Ghanaians being poor, parliamentarians tend to be sensitive to popular sentiments and often articulate pro-poor messages from the grassroots. In their bid to win votes, one may say that parliamentarians a lightning rod for poverty-related problems that affect their constituents

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