KMA and Four Other Assemblies Fail to Collect Rent Arrears Totaling Over GH¢681,000
Audit exposes massive rent default as 357 tenants evade payments; assemblies fail to explain glaring omissions, risking asset deterioration
KMA and Four Other Assemblies Fail to Collect Rent Arrears Totaling Over GH¢681,000
The Auditor General’s recent report on the accounts of District Assemblies for the year ended December 31, 2024, has unveiled significant lapses in rent collection by five assemblies within the Ashanti Region.
The assemblies in question; Kumasi Metropolitan Assembly (KMA), Ahafo Ano North District, Ahafo Ano South West District, Atwima Nwabiagya Municipal, and Ejura Sekyedumase Municipal have collectively failed to recover rent arrears amounting to GH¢681,122 from 357 tenants occupying official bungalows and other assembly-owned properties.
According to the audit findings, Ejura Sekyedumase Municipal Assembly acknowledged their failure as an “oversight” during inquiries by auditors from the Ghana Audit Service.
However, the remaining four assemblies, including the KMA, did not provide any explanation for the accumulated outstanding rent.
The Ghana Audit Service report highlighted the violation of Regulation 46 of the Public Financial Management (PFM) Regulations, 2019 (L.I. 2378), which mandates Principal Spending Officers to ensure efficient collection of non-tax revenue.
Breakdown of Rent Arrears per Assembly:
• Ahafo Ano North District: 31 defaulters—assembly bungalows—GH¢17,320
• Ahafo Ano South West District: 49 defaulters—assembly bungalows—GH¢19,622
• Atwima Nwabiagya Municipal: 41 defaulters—assembly bungalows—GH¢40,710
• Ejura Sekyedumase Municipal: 194 defaulters—assembly bungalows—GH¢514,780
• Kumasi Metropolitan Assembly: 42 defaulters—assembly bungalows—GH¢88,690
Auditors cautioned that failure to collect these rents may deprive the assemblies of crucial funds necessary for the maintenance and upkeep of these official properties, potentially leading to their deterioration.
“This could deny the Assemblies funds for maintenance of the buildings leading to deterioration,” the report stated.
In response, the audit service urged the assemblies to take immediate action to recover the outstanding sums.
“We recommended that Management should recover the total rent of GH¢681,122.00 from the defaulters by considering the introduction of pragmatic measures which includes obtaining standing orders to their bankers for monthly payments of the outstanding rent and future ones.
“We also recommended that in future recalcitrant defaulters should be compelled to pay any arrears and be ejected while the properties are re-allocated to those willing to pay,” the audit report added.
Source: www.Kumasimail
