Key Takeaways
- The Auditor-General's reports over the past five years reveal that revenue collectors' salaries at several metropolitan, municipal, and district assemblies (MMDAs) exceeded the amount of internally generated revenue mobilized.
- The practice contravenes Section 52 of the Public Financial Management Act, 2016 (Act 921), leading to significant inefficiencies in revenue collection and avoidable financial losses for the assemblies.
- The affected assemblies have continued to retain revenue collectors whose salaries exceed the amount of revenue they generate, despite repeated audit recommendations to address the anomaly.
The Auditor-General's reports over the past five years have exposed a worrying trend in the way metropolitan, municipal, and district assemblies (MMDAs) handle revenue collection. The reports have consistently shown that the salaries of revenue collectors at several MMDAs have exceeded the amount of internally generated revenue mobilized.
The Daily Graphic's analysis of the reports reveals that between 2021 and 2025, MMDAs spent a total of GH¢22.4 million on salaries for revenue collectors, while the officers generated only GH¢10.26 million from property rates, fees, licenses, and other revenue components.
Background & Context
The Public Financial Management Act, 2016 (Act 921) requires MMDAs to mobilize internally generated revenue to supplement their budget. However, the Auditor-General's reports have consistently highlighted inefficiencies in revenue collection, leading to avoidable financial losses for the assemblies.
Experts have attributed the inefficiencies to weak incentives for revenue collectors, inadequate monitoring and accountability mechanisms, and the use of outdated revenue collection systems.
Key Findings
The Auditor-General's reports have identified several MMDAs that have continued to retain revenue collectors whose salaries exceed the amount of revenue they generate. The affected assemblies include Asunafo South, Berekum, Dormaa Central, and others.
The analysis of the data shows that in 2021, 163 revenue collectors at 31 assemblies were paid GH¢3.04 million in salaries but mobilized only GH¢1.63 million in revenue, resulting in a shortfall of GH¢1.41 million.
Despite repeated warnings and recommendations by the Auditor-General, the desired impact has remained disappointingly limited over the past five years. The situation has deteriorated further in 2024, with a shortfall of GH¢6.96 million.
Broader Implications
The findings raise fresh concerns about the effectiveness of revenue mobilization systems at the assemblies and the need for stronger oversight to ensure value for money in the collection of internally generated funds.
Experts have emphasized the need for assemblies to adopt digital revenue collection systems, performance-based incentives, and merit-based recruitment to improve efficiency and value for money.
Looking Ahead
As the Auditor-General's reports continue to highlight inefficiencies in revenue collection, it is crucial that MMDAs take immediate action to address the anomaly. This includes adopting digital revenue collection systems, strengthening monitoring and accountability mechanisms, and providing incentives for revenue collectors to maximize internally generated funds.
The central government must also take a firmer stance in ensuring that MMDAs comply with the Public Financial Management Act, 2016 (Act 921), and adopt best practices in revenue collection to improve efficiency and value for money.
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