Africa-Press – Ghana. 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.
Mr George Anane Coleman, the Municipal Chief Executive (MCE), made the disclosure in an interview with the Ghana News Agency, describing the debt as a major 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.
He said: “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,” he indicated.
The debt, according to Assembly’s records, stemmed from unpaid withholding taxes, penalties, and interests on statutory payments related to contracts, staff allowances, and internally generated funds.
The situation came to light during a recent audit by the Municipal Finance Office in collaboration with the GRA.
Officials say the accumulation of such a large debt had affected the Assembly’s ability to access certain central government support packages and donor funds, hampering development projects in health, sanitation, and infrastructure.
Mr Coleman explained that the repayment will be done through a phased approach without 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.”
The Assembly has also initiated internal reforms, including tracking of payments, regular auditing of procurement processes, and training for staff on financial regulations to avoid future liabilities.
As the Assembly moves forward with its repayment strategy, the MCE has called on citizens to support local revenue collection efforts by paying levies and taxes promptly, emphasising that development could only be sustained through shared responsibility.
The Assembly’s commitment to settling the debt marks a turning point in its governance and financial management which signals a new era of transparency and fiscal discipline.
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