Finance law is ‘revolutionary’

Senior government officials and a renowned lawyer have commended the National Assembly for passing  Public Finance Management Bill, calling it a revolutionary in stopping theft of public funds.

Director of Public Prosecutions (DPP) Steven Kayuni said in an interview yesterday that the new piece of legislation, passed in Parliament on Friday to replace the Public Finance Management Act, provides a robust legal framework that will postulate law enforcement ideals.

He said: “It is a sacrilege for public officers to wantonly dip their fingers in public coffers either by themselves or being used as enablers. This law targets public officers who help those outside the public office like contractors to steal from government.

“So, in those scenarios where they did not themselves benefit or no evidence is there of direct benefit but it’s clear that due to their action in office some private individuals benefited by looting public coffers, this law will catch up with them.”

The DPP said Malawi has just created an opportunity to enhance the fight against financial crimes, bleeding and pilferage of government coffers.

In a seperate interview yesterday, Attorney General Thabo Chakaka-Nyirenda said the objective of the Bill was to repeal and replace the Public Finance Management Act (Cap. 37:02) to provide a robust legal framework for transparent, accountable, efficient, effective and responsible management of public resources and matters incidental thereto.

Lawyer Kamudoni Nyasulu, a long time State prosecutor both on full time and part time basis, posted on his Facebook page yesterday that he was excited with the passing of the Bill, adding it was his hope that President Lazarus Chakwera would assent to it before March 31 2022 to show his commitment to its provisions.

He said: “The new law, with 28 provisions and improvements to three provisions that assist investigation and prosecution of financial crimes (fraud, corruption and embezzlement of public funds), is a revolution for the fight against ‘katangale’ and abuse of office.”

The new law, according to notes accompanying it by Clerk of Parliament Fiona Kalemba, brought major changes to the Public Finance Management Act which included the establishment of bodies with clearly spelt out responsibilities in management of public resources.

The piece of legislation has placed responsibilities on the Minister of Finance, ministers, Secretary to the Treasury, controlling officers, chief executive officers and officers, of mobilising, using and accounting for public resources.

The new law establishes the office of the Comptroller of Internal Audit.

It also establishes a framework for parliamentary oversight of budgetary matters, and here, the new law assigns budget oversight functions to the Budget Committee of the National Assembly. The committee is granted power to access all relevant information with an obligation for it to maintain confidentiality.

The new law provides a legal framework for borrowing, issuance of guarantees and management of public debt. This part obligates the Treasury to develop and implement a responsible debt management strategy to guide government borrowing, both locally and internationally.

The Bill adds: “The minister is required to lay out a strategy and government borrowing plans before the National Assembly to ensure checks and balances in the borrowing regime.

“[It also] provides for the establishment of a Debt Retirement Fund to be managed by the Debt Retirement Committee. The fund is aimed at reducing pressure on the national budget as, apart from parliamentary appropriation, the fund will generate resources from other sources to be prescribed by the Minister annually. The fund is ring-fenced and payments can only be made upon approval of the committee and for purposes of repaying public debts.”

The new law also provides for review of the reports and financial statements by the Auditor General (AG) and issuance of AG’s report.

[It also] provides for disciplinary misconduct and criminal offences and prescribes the applicable penalties. The part provides a list of improper conducts which are subject to disciplinary action in accordance with the applicable terms and conditions of employment.

“The Secretary to the Treasury and controlling officers have been given power to take the appropriate disciplinary measures and, where they cannot do so, to submit a recommendation for such action to the appropriate body. The part further prescribes a list of improper conducts which amount to criminal offences and the applicable penalties, upon conviction,” the new law reads.