Government intensifies monitoring of Premix Funds, recovers details on GHc4.6 Million
The Government has intensified efforts to strengthen accountability and financial oversight within the premix fuel distribution system, with Landing Beach Committees accounting for GH¢4,676,011.14 in the Community Development Fund during an ongoing nationwide Premix Fuel Accountability and Bookkeeping Exercise.
The exercise forms part of broader reforms being implemented to improve transparency, financial discipline and the management of the Community Development Fund, which is derived from 53 per cent of the margins generated from the sale of subsidized premix fuel and earmarked for development projects in fishing communities.
The accountability exercise follows findings from a special audit led by the Ministry of Fisheries and Aquaculture as part of Government’s bid to reflect its Reset Agenda for key sectors. The audit, which covered the period 2016 to 2024, revealed the need for the accountability series after uncovering financial irregularities, unauthorized transactions, weak record-keeping and weaknesses in the management of the Community Development Fund in some communities.
According to data compiled by the National Premix Fuel Secretariat, 167 Landing Beach Committees have so far been covered under the latest phase of the accountability exercise, with records from 34 committees fully verified.
Of the total amount accounted for by the Landing Beach Committees, GH¢4,189,444.92 represents current payments verified during the exercise, while GH¢486,566.22 represents balances brought forward from previous accounting periods.
The Administrator of the National Premix Fuel Secretariat, Mr. Ebow Mensah, described the exercise as a major intervention aimed at restoring confidence in the management of the Community Development Fund.
“This exercise goes beyond financial reconciliation. It is about promoting transparency, accountability, and responsible stewardship of resources intended to improve the lives of people in fishing communities,” he said.
According to him, the exercise is providing the Secretariat with a clearer understanding of financial management practices at the community level while identifying gaps that require corrective action, capacity building and stronger oversight.Mr. Mensah said steps have already been taken to prevent a recurrence of the irregularities identified through the audit and the ongoing accountability exercise.
These include stronger monitoring, improved account verification, bookkeeping support, compliance checks and closer collaboration with Metropolitan, Municipal and District Assemblies.
The exercise has revealed a number of operational challenges confronting some Landing Beach Committees.
In several districts, records are yet to be fully verified because changes in bank account signatories have delayed access to account statements and affected reconciliation processes.
The monitoring teams also observed that some committees are yet to deposit Community Development Fund proceeds because they are awaiting introductory letters from their respective Metropolitan, Municipal and District Assemblies to facilitate the opening of bank accounts.
Additionally, several committee members demonstrated limited understanding of bookkeeping procedures and bank documentation requirements, particularly in relation to bank statements and account reconciliation.
Mr. Mensah noted that these findings highlight the need for continuous training and support to strengthen financial management systems within Landing Beach Committees nationwide.
“The exercise is helping us identify areas where committees require additional support in bookkeeping, record management, and compliance with financial procedures. These are critical steps toward protecting community development funds and ensuring they are used for their intended purposes,” he stated.
The Secretariat cautioned all Landing Beach Committees to strictly adhere to L.I. 2233, which governs the operations of the premix fuel distribution system.
It said committees must ensure that all proceeds due the Community Development Fund are properly deposited, recorded and used only for approved community development purposes.
Minister for Fisheries and Aquaculture, Hon. Emilia Arthur (MP), has consistently emphasized the importance of accountability in the premix fuel distribution system, describing transparency and proper financial management as essential to the development of fishing communities and the sustainability of the fisheries sector.
The Secretariat said the exercise remains ongoing and will continue across the country as part of broader reforms aimed at improving governance, strengthening accountability mechanisms and ensuring that community development resources directly benefit fishing communities.
The National Premix Fuel Secretariat also said it will continue to deepen its oversight through the Metropolitan, Municipal and District Chief Executives.
It thanked the MMDCEs for their support and cooperation, noting that their role has been critical to the success of the accountability exercise.
The NPFS believes the exercise is already contributing to stronger financial management practices, improved record keeping and greater transparency within the premix fuel distribution system nationwide.
The Community Development Fund is intended to support community development projects in fishing communities across the country. These include CHPS compounds, schools, drainages, toilet and sanitary facilities, markets and other grassroots development projects that directly serve the needs of local fishing communities.
Under existing regulations, Landing Beach Committees serve as trustees of the Community Development Fund and are required to deposit the proceeds into designated community bank accounts and account for their utilization.
The fund is not meant for private use or unauthorized expenditure. It is intended to finance priority projects that promote grassroots development and improve the lives of people in fishing communities.
However, the audit covering 2016 to 2024 uncovered cases of financial irregularities, weak record-keeping, unauthorized transactions and non-compliance with established financial procedures in some communities.
The ongoing accountability exercise is therefore expected to correct these weaknesses, prevent a recurrence and ensure that Community Development Fund resources are used strictly for their intended purposes.
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