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Government issues Statutory Instrument to strengthen Public Finance Management Act

Finance Minister Margret Mwanakatwe has issued a Statutory Instrument number 42 of 2018 which brings into effect the Public Finance Management Act number 1 of 2018 which has been strengthened.

Minister of Finance Margaret Mwanakatwe
Minister of Finance Margaret Mwanakatwe

In a statement made available to the media, Mrs Mwanakatwe says the Statutory Instrument number 42 of 2018, the Public Financial Management Act (commencement ) order 2018, was gazetted and published by the Government Printer on Wednesday,30th May 2018.

She says it envisaged that with effective enforcement of the Public Finance Management Act no.1 of 2018, transparency and accountability in public finance management in Zambia will tremendously improve.

Mrs Mwanakatwe says incidences of misuse and theft of public resources will also be reduced and ultimately eliminated.

She states that this will have a positive impact on resource allocation and eventually improve public service delivery.

The Finance Minister adds that in accordance with the Act, any person who breaches provisions of the Public Finance Management Act no.1 of 2018 will be fined, suspended, demoted dismissed, or prosecuted, accordingly.

She further states that the Act has been embedded with provisions to facilitate the operation of the Treasury Single Account and the Integrated Financial Information Management Systems.

She explains that in this regard, the Act will provide a platform for further regulation of electronic financial transactions within the framework of Public Financial Management.

Mrs Mwanakatwe says this is in line with the Government’s e-government policy and is expected to reduce operational costs, improve resource allocation, promote efficiency in the management of public resources, and enhance public service delivery.

She adds that with effect from 30th May 2018, the Gazette date for the Public Finance Management Act (commencement) order, 2018, board members of state-owned enterprises and statutory corporations will individually and severally be accountable for their decisions.

She says this is aimed at improving the levels of decision morality, transparency, accountability, and integrity among persons in positions of accountability.

Mrs Mwanakatwe has further stated that the Public Finance Management Act no.1 of 2018 also empowers the Secretary to the Treasury to deal with non-performing Controlling officers and Controlling bodies

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