Institute of Chartered Accountants in Malawi (Icam) and an economist have tipped government on proper management of taxpayers’ money to prevent losses in the forthcoming 2022/23 National Budget.
In an interview on Wednesday, Icam chief executive officer Francis Chinjoka Gondwe said there are several existing loopholes in government revenue collecting institutions that need to be sealed
He asked Treasury to ensure that certain government tax collecting entities are not retaining fees that they collect on behalf of government.
“Such funds should instead be deposited in Account Number One and only get funding from government for their budgeted and approved expenditure like the case with Malawi Revenue Authority [MRA],” said Chinjoka Gondwe.
He cited government agencies such as Malawi Communications Regulatory Authority, Malawi Energy Regulatory Authority, Directorate of Road Traffic and Safety Services, Department of Immigration and Citizenship Services and others that allegedly collect money without adding any value to it.
Chinjoka Gondwe urged government to consider outsourcing collection and receipting of funds to commercial banks in all councils, ministries, departments and agencies (MDAs) to reduce misuse or delays in banking.
Economist Milward Tobias, who is executive director of the Centre for Research and Consultancy, described Icam’s proposals as feasible, especially for the cited institutions and MDAs.
“They may have what is called appropriation in aid where you retain a certain percentage, MRA does that,” he said.
Minister of Finance Felix Mlusu has been soliciting input for the 2022/23 budget framework to ensure inclusivity.