Accra: The Upper Denkyira East Assembly (UDE) has begun paying an outstanding debt of GHS1.3 billion owed to the Internal Revenue Service (IRS). The debt was accumulated over several years under previous administrations.
According to Ghana News Agency, Mr George Anane Coleman, the Municipal Chief Executive (MCE), disclosed in an interview that the debt represents a significant fiscal burden inherited by the current administration. He assured that efforts were underway to negotiate a structured repayment plan with the Ghana Revenue Authority (GRA) to clear the debts.
Mr Coleman stated, "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. However, as a responsible administration, we are taking full responsibility to clean up the books, restore the Assembly's credibility, and ensure future sustainability."
The debt, according to the Assembly's records, stemmed from unpaid withholding taxes, penalties, and interests on statutory payments related to contracts, staff allowances, and internally generated funds. This situation was revealed during a recent audit by the Municipal Finance Office in collaboration with the GRA.
Officials highlighted that the accumulation of such a large debt had affected the Assembly's ability to access certain central government support packages and donor funds, which in turn hindered development projects in health, sanitation, and infrastructure.
Mr Coleman explained that the repayment will be executed using a phased approach to avoid disrupting essential services. "We have agreed in principle to pay the debt in tranches over a period, while intensifying revenue mobilization, cutting waste, and enhancing financial transparency," he noted.
The Assembly has also initiated internal reforms, including tracking payments, regular auditing of procurement processes, and training for staff on financial regulations to prevent future liabilities. As the Assembly progresses with its repayment strategy, the MCE urged citizens to support local revenue collection efforts by paying levies and taxes promptly, emphasizing that development can only be sustained through shared responsibility.
The Assembly's commitment to settling the debt signifies a turning point in its governance and financial management, marking a new era of transparency and fiscal discipline.
