No record for K500m; PAC faults govt on finances

Parliament’s Public Accounts Committee (PAC) has faulted government for failing to demonstrate seriousness in managing public funds.

PAC deputy chairperson Kamlepo Kalua said this in an interview at Parliament Building in Lilongwe on Monday in the wake of revelations that the Accountant General could not explain transactions amounting to K524.8 million for the 2015/16 financial year.

Efforts by Secretary to the Treasury (ST) Ben Botolo to explain that government will soon start penalising public officers involved in the malpractice did not convince the committee either.

Kalua argued that failure by the Accountant General to explain the transactions pointed to continued plunder of public resources at Capital Hill widely known as Cashgate exposed through the September 13 2013 near-fatal shooting of then Ministry of Finance, Economic Planning and Development budget director Paul Mphwiyo at the gate of his Area 43 residence.

Said Kalua: “It is worrisome that problems of financial mismanagement are happening at the office of the Accountant General  which is supposed to be the custodian of our finances, the national purse. I don’t think as a country we can proudly say we are on course in terms of public funds management. We have lost control…”

He described as lack of seriousness the Accountant General’s explanation that the transactions could not be traced due to poor filing system.

In an interview, Botolo said reconciliation is a major issue of concern among government ministries, departments and agencies (MDAs).

However, he said Treasury was working to resolve the challenge through the shift from manual to electronic system.

Said Botolo: “It is unfortunate that even the Accountant General failed to reconcile. As a controlling officer, he should be the first one to reconcile and even the accounts in the Treasury they have to be reconciled.

“The problem is that the people who do these lack induction. Yes, they may be chartered accountants, but without proper public finance management knowledge, the blunders will continue.”

During the meeting with PAC, the Accountant General was tasked to respond to audit queries relating to the purchase of fuel worth K67.7 million that was not recorded in the fuel register; payment without supporting vouchers for K2 million; unjustified subsistence allowances totalling K7.7 million and unclear transactions not recorded in cashbooks amounting to K524.8 million.

In meetings between PAC and MDAs over 2015/16 audit queries, most controlling officers have mentioned poor filing and untrained staff as key challenges contributing to failure to account for public funds.