The Ministry of Finance has refuted claims suggesting that over four hundred and fifty thousand kwacha went missing as a result of the crash of the Integrated Financial Management Information System.
The ministry also says the Government’s commitment to transparency and accountability in the utilization of public resources through implementation of Public Financial Management Reforms is bearing substantial fruit – especially after the enactment of the Public Financial Management Act, 2018.
Ministry of Finance Public Relations Officer Chileshe Kandeta says the Public Financial Management Act, 2018, is now the principal act on public financial management matters.
Mr. Kandeta says since its coming into force, the Act has helped to facilitate easy enforcement of regulations; offered clear guidance on management of financial reforms; and, stipulated offences and penalties related to public resources in both local and central government.
“The Public Financial Management Act, 2018, is also embedded with provisions that have now operationalized the IFMIS and The Treasury Single Account in law. Upon the instruction of the Republican President Mr. Edgar Lungu, and on the guidance of the Minister of Finance, an Internal Audit Oversight Committee has been constituted whose mandate is to make decisions on internal audit reports from Ministries, Provinces and Other Controlling Bodies, and to analyse and give guidance on management reports assigned to respective government institutions by the Auditor General in order to forestall adverse reports in future audits,” he said.
Mr. Kandeta states that the Government of Zambia Internal Audit Oversight Committee is Chaired by the Secretary to the Cabinet and also comprises the Secretary to the Treasury; Deputy Secretary to the Cabinet [Administration]; Controller of Internal Audit – Ministry of Finance; Accountant General – Ministry of Finance; Permanent Secretary [Public Service Management Division – Cabinet Office]; and, Chairpersons of Civil/Public/Teaching/Local Government/Police & Prisons Service Commissions.
He adds that following the upgrading of the Office Controller of Internal Audit to Permanent Secretary Status by the President, the Ministry of Finance is in the process of strengthening the cohesion and functionality of Audit Committees in Ministries, Provinces and Other Controlling Bodies.
“The Ministry is also in the process of developing a Risk Management Framework to ensure that, going forward, we achieve a significant reduction and ultimately, elimination of infringements related to the handling; storage; care; and, utilisation of public resources,” Mr. Kandeta said.
“To put the record straight, the IFMIS developed operational challenges in January, 2018. The funds in question relate to the Zambia Bureau of Standards and the Competition and Consumer Protection Commission [CCPC] under the Ministry of Commerce Trade and Industry, which were fraudulently paid to an individual for the year ending 31st December, 2017,” he added.
The IFMIS, an information technology platform which developed operational dysfunction in January 2018, was restored in some sites in March, 2018.
It became fully operational at the end May, 2018, following its re-installation in all sites [Ministries and Provinces].
“Concerning the over K450, 000 missing funds paid to an individual instead of ZABS and CCPC, suffice to say, the IFMIS is a government wide platform which not only exists at Ministry of Finance but in many other Line Ministries and Provinces as well. One of its most important features is an in-built audit trail configuration,” he added.