Adongo calls on minister to account for Covid-19 expenditure before GH₵500m request for drought
The Minister of Finance, Dr. Mohammed Amin Adam on Wednesday August 28, formally requested the release of GH₵500 million from the Contingency Fund to help address the food insecurity threat posed by the ongoing drought in middle and northern belts of Ghana.
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In a letter to Parliament’s Finance Committee, Dr. Amin Adam explained that, with the 2024 Budget already eight months into implementation, the proposed interventions are unplanned expenditures triggered by a ‘force majeure.’ As a result, the government cannot fully fund the GH₵8.36 billion request solely through reallocating existing budget lines.
He further stated that, in light of this, the government is seeking approval from the Finance Committee for the withdrawal of GH₵500 million from the Contingency Fund, in accordance with Article 177(1) of the 1992 Constitution, Section 36(1) of the Public Financial Management Act, 2016 (Act 921), and Section 227(1) of the Standing Orders of Parliament of Ghana.
But in a radio interview on Accra-based Citi FM on Wednesday, the Ranking Member on the Finance Committee of Parliament, Isaac Adongo, said a number of issues must be addressed before the committee can approve the funding.
Mr Adongo who is also the Member of Parliament for Bolgatanga Central, outlined three key areas requiring clarification namely the status of previous financial advances, a detailed breakdown of beneficiaries, and a specific budget allocation for the requested funds.
He recalled that in 2020, during the COVID-19 pandemic, the committee approved a $200 million advance from the Stabilisation Fund to the Contingency Fund, which equated to $1.2 billion at the time due to exchange rates.
The committee is now seeking an update on the status of this advance and its replenishment before considering the new request.
Furthermore, Adongo emphasised the need for a comprehensive breakdown of the GH₵500 million allocation, specifying how the funds would be distributed at the regional, district, and community levels, including details on individual beneficiaries.
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The committee also noted that while the Ministry’s submitted budget outlines a total fiscal implication of GH₵8.36 billion, their current focus is on the GH₵500 million request.
The legislator therefore stressed the necessity of a detailed budget showing the exact application of the GH₵500 million towards drought relief.
He said the committee has not yet made a decision on the request, stating that approval will depend on the provision of the requested data and the insights it provides.
"The committee unanimously agreed that certain compliance issues must be met," Adongo stated, emphasising the importance of transparency and accountability before any funds are approved.