• (1) There shall be a fund to be known as the District Assemblies Common Fund referred to in this Act as "the Common Fund"

      (2) The Common Fund shall consist of all monies allocated by Parliament under section 2 of this Act and any interests and dividends accruing from investments of monies from the Common Fund.

      (3) The allocation made by Parliament under section 2 shall be paid into the Common Fund in quarterly instalments.

      (4) The monies accruing to the District Assemblies in the Common Fund shall be distributed among all the District Assemblies on the basis of a formula approved by Parliament.

      (5) For the purpose of determining the formula under sub-section (4) of this section, the Administrator appointed under section 3 shall within six months after his appointment, and thereafter, within three months after the end of every financial year, submit to Parliament proposals for the formula for the consideration of Parliament.

      (6) Nothing in this section or any other law shall be taken to prohibit the Government or any other bodies or person from making grants-in-aid to any District Assembly.

    • Parliament shall annually allocate not less than five per cent of the total revenues of Ghana to the District Assemblies for development.

    • There shall be appointed by the President acting in consultation with the Council of State and with the approval of Parliament, a District Assemblies Common Fund Administrator referred to in this Act as "the Administrator".

    • No person is qualified to be appointed the Administrator who

      (a) is not a citizen of Ghana;

      (b) has been adjudged or otherwise declared

      (i) bankrupt under any law in force in Ghana and has not been discharged; or

      (ii) to be of unsound mind or is detained as a criminal lunatic under any law in force in Ghana; or

      (c) has been convicted

      (i) for high crime under the Constitution or high treason or treason or for an offence involving the security of the State, fraud, dishonesty or moral turpitude; or

      (ii) for any other offence punishable by death or by a sentence of not less than ten years; or

      (d) has been found by the report of a commission or a committee of inquiry to be incompetent to hold public office or is a person in respect of whom a commission or committee of inquiry has found that while being a public officer he acquired assets unlawfully or defrauded the State or misused or abused his office, or wilfully acted in a manner prejudicial to the interest of the State, and the findings have not been set aside on appeal or judicial review; or

      (e) has not paid all his taxes or made arrangements satisfactory to the appropriate authority for the payment of his taxes; or

      (f) is under sentence of death or other sentence of imprisonment imposed on him by any court; or

      (g) is otherwise disqualified by a law for the time being in force.

    • (1) The Administrator shall hold office for a period of four years and is eligible for re-appointment.

      (2) The salary and allowances payable, and the facilities and privileges available to the Administrator shall be determined by the President in accordance with Article 71 (1) of the Constitution.

    • The Administrator may resign his office by writing addressed to the President and the President may request the Administrator to resign his office or remove him from office for just cause.

    • The Administrator has the following functions-

      (a) to propose a formula annually for the distribution of the Common Fund for approval by Parliament;

      (b) to administer and distribute monies paid into the Common Fund among the District Assemblies in accordance with the formula approved by Parliament;

      (c) to report in writing to the Minister on how allocations made from the Common Fund to the District Assemblies have been utilized by the District Assemblies; and

      (d) to perform any other functions that may be directed by the President.

    • The Administrator may, pending the distribution of monies in the Fund, from time to time invest all or any portion of the monies in the Fund in such securities or in such manner as may be approved by the Minister in consultation with the Minister responsible for Finance.

    • The Minister responsible for Finance shall in consultation with the Minister, determine the category of expenditure of the approved development budget of District Assemblies that must in each year be met out of amounts received by the Assemblies from the Fund.

    • (1) There shall be appointed by the President for the Common Fund such staff as the Administrator may require for the effective implementation of his functions.

      (2) Staff of the Fund shall be public officers.

      (3) The President may delegate his power under this section to the Minister or the Administrator.

    • (1) The Administrator shall keep proper books of account and proper records in relation to the accounts of the Common Fund and the account books and records shall be in a form approved by the Auditor-General.

      (2) The books of accounts of the Common Fund shall at the end of each financial year be audited by the Auditor-General or an auditor approved by him.

      (3) The Administrator shall pay in respect of the audit such fees, if any, as the Administrator and the Auditor-General may agree.

    • (1) Subject to subsection (2) of this section all expenses incurred by the Administrator under this Act shall be a charge on the Consolidated Fund.

      (2) Charges including bank charges on transfers and charges on interest shall be charged on the Common Fund.

    • The Financial year for the Common Fund shall be the same as the financial year of the Government.

    • The Administrator shall within six months after the end of each financial year submit to Parliament a report of his activities during the preceding financial year including the manner in which he has distributed the monies lodged in the Fund and the report of the Auditor-General on the accounts.

    • Any person or District Assembly dissatisfied with the performance by the Administrator of his functions may submit a complaint to the Commission on Human Rights and Administrative Justice.

    • The Local Government Law, 1988 (P.N.D.C.L. 207) as amended and any other enactment in existence immediately before the coming into force of this Act shall have effect subject to such modifications as may be necessary to give effect to the provisions of this Act.

    • In this Act unless the context otherwise requires 3/4

      "District Assembly" includes a Metropolitan and a Municipal Assembly;

      "Fund" means the District Assemblies Common Fund;

      "Minister" means the Minister responsible for Local Government;

      "total revenue" means all revenue collected by or accruing to the Central Government other than foreign loans, grants, non-tax revenue and revenues already collected by or for District Assemblies under any enactment in force.