The 53 per cent community development fund created under Ghana’s premix fuel policy is one of the most direct ways public subsidy is translated into visible benefits for fishing communities. Yet officials say the fund will only deliver its promise if it is carefully protected, transparently managed, and openly accounted for.
Administrator of the National Premix Fuel Secretariat, Ebow Mensah, described the community fund as the “development heart” of the premix system.
“Government spends a lot of money subsidising premix fuel,” he said. “The understanding is simple: when profits are made at the landing beaches, part of that money must come back to develop the community. This is not optional, and it is not a favour.”
Under L.I. 2233, 53 per cent of premix fuel margins is reserved exclusively for fishing communities and must be paid into a designated community bank account. The fund is intended to support projects that benefit the entire community, not individuals or interest groups.
According to Mr Mensah, when the fund is properly managed, its impact is immediate and visible.
“These funds can improve sanitation around landing beaches, support small infrastructure repairs, improve lighting and safety, and strengthen livelihoods linked to fishing,” he said. “When people see real projects, confidence in the premix system grows.”
He warned, however, that weak controls over the community fund expose it to abuse, diversion, and politicisation, which, in turn, threaten the credibility of the entire subsidy programme.
“When the community fund is treated as private money, trust collapses,” he said. “People stop cooperating, conflicts rise, and it becomes harder to justify continued public support for premix.”
As part of the ongoing Premix Accountability Series, landing beach committees in Sekondi, New Takoradi and Abuesi publicly presented bank statements showing where the 53 per cent community share had been lodged and how much had accrued during the year.
“I am impressed,” Mr Mensah said. “They showed us the accounts, they showed the figures, and they demonstrated that the funds are being kept separate for community use.”
He stressed that protecting the community fund also means giving communities a stronger voice in deciding how the money is spent.
“The law expects consultation,” he said. “Communities must be involved in choosing projects, and those projects must be tracked until completion.”
Looking ahead, the Secretariat plans to institutionalise quarterly public reporting at landing beaches so that community members can verify deposits, monitor balances, and agree on development priorities.
“The 53 per cent community fund is one of the strongest pro-community features of the premix policy,” Mr Mensah said. “If we protect it, it delivers development. If we neglect it, it becomes a controversy.”
He added that safeguarding the fund is essential not only for fishing communities but for the survival of the premix subsidy itself.
“Accountability is what keeps the system credible,” he said. “And credibility is what keeps premix alive.”
Poor Records, Not Illiteracy, Fuel Premix Accountability Gaps – Secretariat
Weak record-keeping, rather than lack of education, has been identified as one of the major threats to accountability in the premix fuel distribution system.
Administrator of the National Premix Fuel Secretariat, Ebow Mensah, said inaccurate stock records and incomplete documentation continue to undermine transparency at some landing beaches, even where fuel is available.
“One of the challenges we have identified this year is inaccurate stock recording and incomplete documentation of premix supply and sales,” Mr Mensah said. “This is basic arithmetic. With the barest minimum level of education, anybody should be able to do this correctly.”
He explained that poor records make it difficult for communities to verify how much fuel was received, how much was sold, what profit was made, and how much should accrue to the 53 per cent community development fund required under L.I. 2233.
To address the problem, the Secretariat has introduced a Premix Fuel Returns Booklet, which is now being rolled out to landing beach committees.
“This booklet becomes the sole document covering all premix transactions,” Mr Mensah said. “On the day fuel is received, it is recorded. When it is sold, even if it is sold days later, depending on market days, that is recorded. The profit is shown, the 53 per cent is clearly indicated, and the responsible person signs.”
In addition to the returns booklet, a logbook system has been introduced to track daily activities and strengthen audit trails.
According to Mr Mensah, these controls are designed not only to prevent diversion but also to protect honest committees from suspicion and conflict.
“When records are clear and consistent, communities do not have to guess. They can see the figures, confirm the bank deposits, and decide together what development projects to pursue,” he said.
He added that improving documentation is essential to safeguarding the credibility of the premix subsidy itself.
“If the public begins to see premix margins as private rent rather than community development funds, it becomes difficult to defend the subsidy,” Mr Mensah warned. “Accountability is what keeps the system alive.”