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Internally Generated Funds

Registrar General’s Department (RGD)

Registrar-General’s Dept bags GH¢88m as IGF in 9 months. – News Ghana 18 October 2019

Reference to the above which appeared on News Ghana, one may ask whether it was published in fulfillment of any obligation by law or regulation. If by law or regulation, then why are other institutions not publishing whatever they have bagged from IGF. If not then what is the purpose?
For the sake of fairness and transparency to Ghanaians, I will suggest that institutions be made by law, to publish in detailed, their IGF yearly or mid-yearly.

One may ask what is IGF or an Internal Generated Revenues?

They are monies collected by a government/ institutions from the citizenry of the state through imposition of levies and taxes on facilities, incomes, sale of goods and services, transfers of properties, and other domestic transactions. This is not the same thing as monies collected from duties imposed on imports and other international transactions, also called inland revenue.

Internally Generated Funds also mean funds
not constituting the proceeds of any Loan, Debt Issuance, Equity Issuance, Asset Sale, insurance recovery or Indebtedness.

Institutions are normally given three main revenues sources: locally generated revenues ie IGF (traditional), central government transfers, and Donor Funds.
For example the locally generated revenues (traditional) for the Assemblies, include property rates, ground rent, fees and licenses, commercial undertakings, and service charges.

Some years back in Ghana, some institutions were using all “methods” to generate funds from citizenry especially the private sector. One of such “methods” was to invite companies to register with them and be updated on to their databases as prospective partners to tender for their projects. Some of these invitations appeared in the papers yearly in the form of adverts and the fees ranged from ghc200 to ghc2000 and even ghc5000 depending on the status of the institution (from district assemblies to an oil or gas institutions).
The benefit would be that if one is lucky one would be invited to tender for a project otherwise, well your guess is good as mine. Nothing happened.

Today and recently the scenario has changed, it is the Public Procurement Authority (PPA) that is, by law, collecting the registration fees, and unlike previous situation, the disadvantage here is that PPA is not authorized to invite companys to tender for projects.

The Question.

The question one may ask is why should PPA be mandated to collect registration fees?

However despite this arrangement and PPA’s mode of collecting registration fees payment, where part is paid at the bank and part at their office, one sees it as a rushed arrangement. The Registrar General Department is best suited to collect all such registration fees to cover all companys under one “package” and this would surely raked in more money than what PPA is doing at the moment.

Instead of collecting registration fees PPA should be made to concentrate on their core mandate, which is, to harmonize the process of procurement in the public service to secure a judicious, economic, and efficient use of public funds to ensure that public procurement is carried out in a fair, transparent and non-discriminatory manner while promoting a competitive Local Industry.

One does not have to be always in a hurry to collect monies, especially when that opportunity to collect money from the citizenry has not been very well analyzed.

Arc. Gustav Kwakye.

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