“More than K16.0 million Constitutional Grants went stale and were forfeited back to the state this year.”
.
“This is due to non-submittal of acquittal reports of Constitutional grants which consists of Provincial and District Support Grants (PSG & DSG).”
The Department of Implementation and Rural Development (DIRD) Secretary Aihi Vaki said to qualify for the release of next lot of Constitutional Grants depends entirely on the previous year’s both physical and financial reports.
Mr. Vaki said there were 36 discretionary and 31 non-discretionary components of PSG & DSG that added up to K16, 750,000.00 in 2022 that went stale.
In 2021, there were K6, 250,000.00 PSG and DSG of which 12 discretionary and 13 non-discretionary cheques that had been re-issued, however it will go stale again in September 2023, if not collected by the provinces and districts.
“These PSG and DSG cheques went stale because of the failure by the provincial or district finance managers including their administration and we blame them for not complying,” he said.
He said because of such issues and actions by those in authority, people suffer.
“Districts and provinces must identify gaps in important areas that need serious consideration and intervention, especially at the LLG and ward levels where most of the people live.
“Funds must be spent on intended purposes such as law and order, education and health sectors including other sustainable programs in partnership with local communities to empower and improve their living standards and submitting of acquittal reports to access such development grants are very critical.”
Vaki further challenges public servants at the sub-national administration to comply with the administrative guidelines and financial instructions by submitting all outstanding Provincial and District Services Improvement Program (PSIP and DSIP) dated back to 2018-2022.
“I call up on every implementer at the sub-national administration to use the funds wisely and hand over the report back to us as part of compliance that stipulated under the Public Finance Management Act (2014) because huge development grants were frontloaded to sub-nationals who fail to hand over reports.”
He said this is to ensure accountability, transparency and practice good governance at the sub-national administration.