Errant parastatal bosses to pay for diverting funds Mr Fortune Chasi
Deputy Minister Chasi

Deputy Minister Chasi

Lloyd Gumbo Harare Bureau
Permanent secretaries and heads of parastatals who approve overspending and diversion of money allocated to their ministries and entities will pay back from their pockets as government gets tough on financial mismanagement and discipline.
They will also be held responsible for public property that is lost, destroyed, damaged or misused.
This is in line with the new Constitution on financial management where permanent secretaries and state entities heads are expected to spend money according to the budgetary allocation.

Justice, Legal and Parliamentary Affairs Deputy Minister Fortune Chasi told our Harare Bureau last week that the regulations would either be promulgated through amendment of the Public Finance Management Act or introduction of a new Act in line with Section 308 of the new Constitution.

Section 308 (1) and (2) calls on officials responsible for expenditure of public funds and those in control of public property to ensure public funds are safeguarded and spent on legally authorised purposes and amounts and to safeguard the property to ensure it’s not lost, destroyed, damaged or misused.

Sub section (4) states: “An Act of Parliament must provide for the speedy detection of breaches of subsections (2) and (3) and the disciplining and punishment of persons responsible for any such breaches and, where appropriate, the recovery of misappropriated funds or property.”

The government is in the process of aligning existing legislation to the new Constitution with financial management discipline being top on the agenda.
Over the years the Comptroller and Auditor-General’s Office unearthed massive irregularities and misappropriation of funds running into millions of dollars by ministries and government entities.

“The Constitution now requires that after disciplining and punishing government officials and those in charge of state owned companies for the loss, the next step is recovering of funds or property which in this case means the officials will pay from their pockets,” said Deputy Minister Chasi.

“What this means is that accounting officers like permanent secretaries and finance directors or any other people in control of government bodies like parastatals and local authorities have a big duty to ensure they manage public funds and property well.

“They must confine their expenditure to items that were approved in the budget. If they deviate from the budget they will be running away from the grain of the Constitution and will be contravening it. The same applies to those who may spend money on approved items in the budget but exceed approved amount.”

Deputy Minister Chasi said consultations were still under way to see if the provisions should be added to the Public Finance Management Act as amendments or to be introduced as a new Act.

He said the provisions would eliminate poor financial management in government.
Deputy Minister Chasi said the push for good financial management was influenced by the country’s national objectives as provided on Section 9 of the Constitution in relation to good corporate governance.

“Financial management has been elevated to a high level and the Section (308) represents an effort to ensure that there is a robust financial and property management system in government. The provision has far-reaching consequences and is designed to achieve good financial management through effective and efficient use.

“Permanent secretaries and public sector managers must manage but at the same time will be held more accountable with a view to eliminate waste and corruption in the use of public funds,” said Deputy Minister Chasi.

The new regulations, he said, would also cover procurement with state entities expected to follow the government’s financial management agenda.

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