General News Politics Social

GH¢173m from KGL: Razak Kojo Opoku commends NLA’s GH¢10m transfer, calls for legal reform

31

 

Financial economist and academic Dr Razak Kojo Opoku has commended the current management of the National Lottery Authority (NLA) for transferring GH¢10 million into the Consolidated Fund from the GH¢173 million paid to the Authority by KGL.

Dr Opoku, a former Public Relations Manager of the NLA, says the payment raises questions about the reasons the Authority was unable to transfer funds into the Consolidated Fund under its previous management between 2022 and 2024.

He has argued that the latest payment demonstrates that KGL’s financial arrangements with the NLA are not necessarily the reason for the Authority’s inability to make such transfers during the period under review.

He maintained that the government should consider amending the existing legal framework to require KGL to make its payments directly to the Ministry of Finance, rather than paying the NLA, which subsequently determines how much of the proceeds should be transferred into the Consolidated Fund.

Dr Opoku expressed satisfaction with the current management’s decision to transfer GH¢10 million to the Consolidated Fund out of the GH¢173 million paid by KGL.

According to him, the payment provides an important basis for examining the previous management’s handling of funds received from KGL and its obligations regarding transfers to the Consolidated Fund.

He argued that the development suggests that KGL should not automatically be blamed for the NLA’s failure to make the required transfers during the 2022–2024 period.

His position places the focus on the institutional and financial arrangements governing the receipt, management and transfer of funds generated through the relationship between KGL and the NLA.

Beyond commending the current management, Dr Opoku has proposed a change to the legal framework governing payments made by KGL to the NLA.

He wants the law amended to require KGL to pay the funds directly to the Ministry of Finance, which would then determine the amount of money to be allocated to the NLA.

Under his proposal, the Ministry of Finance would have direct oversight of the funds before deciding how much should be made available to the Authority to support its operations.

Dr Opoku believes this approach would remove the existing arrangement under which the NLA receives payments from KGL and determines how much of the money should subsequently be transferred into the Consolidated Fund.

His recommendation would therefore shift the primary responsibility for receiving the payments and determining the NLA’s allocation to the Ministry of Finance.

The Consolidated Fund is a central component of Ghana’s public financial management system, serving as the main fund into which government revenues are paid, subject to constitutional and statutory provisions.

The debate over payments involving KGL and the NLA raises broader questions about revenue management, institutional accountability and the mechanisms used to ensure that funds due to the state are properly accounted for.

Dr Opoku’s proposal suggests that routing KGL’s payments directly through the Ministry of Finance could strengthen government oversight and make the allocation of funds to the NLA more transparent.

Under such an arrangement, the Ministry would determine the Authority’s funding allocation instead of leaving the NLA to decide how much of the money it receives from KGL should be transferred to the Consolidated Fund.

The proposal would, however, require careful consideration of the existing legal framework, the NLA’s operational funding requirements and the implications of changing the current payment structure.

Dr Opoku’s comments draws attention to the distinction between KGL’s payment obligations and the NLA’s responsibility for handling the funds it receives.

His argument is that the inability to transfer money into the Consolidated Fund under the previous management should not be attributed to KGL without examining the Authority’s own financial management and the arrangements governing the transfers.

By advocating direct payments to the Ministry of Finance, he is calling for a system in which the government’s role in receiving and allocating the funds is more direct.

The proposed reform would require changes to the existing arrangement and a clear determination of how the NLA would be funded under the new system.

For now, Dr Opoku has welcomed the current management’s transfer of GH¢10 million from the GH¢173 million paid by KGL while urging the government to consider amending the law to place the responsibility for receiving and allocating the funds directly under the Ministry of Finance.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *