The Upper Denkyira East Assembly has begun repaying an outstanding debt of GHS 1.3 billion owed to the Internal Revenue Service (IRS), a burden that has accumulated over several years under previous administrations.
Municipal Chief Executive (MCE), Mr George Anane Coleman, told the Ghana News Agency the debt was a major fiscal challenge inherited by the current leadership.
“This is a debt that did not occur overnight. It is the result of long years of mismanagement and non-compliance with tax obligations by past leadership,” he said.
Mr Coleman assured that negotiations were ongoing with the Ghana Revenue Authority (GRA) to establish a structured repayment plan.
The debt arose from unpaid withholding taxes, penalties, and interest on statutory payments related to contracts, staff allowances, and internally generated funds, as revealed during a recent audit by the Municipal Finance Office and GRA.
Officials noted that this large liability limited the Assembly’s access to central government support and donor funds, affecting development projects in health, sanitation, and infrastructure.
Mr Coleman explained the repayment would be phased to avoid disruption of essential services. “We have agreed in principle to pay the debt in tranches while intensifying revenue mobilisation, cutting waste, and enhancing financial transparency.”
The Assembly has also launched internal reforms, including improved payment tracking, regular audits of procurement, and staff training on financial regulations to prevent future debts.
The MCE urged citizens to support local revenue collection by paying levies and taxes promptly, stressing that sustainable development requires shared responsibility.
The Assembly’s commitment to clearing the debt signals a new era of transparency and fiscal discipline in its governance and financial management.
