public finance act to be tightened up by amendment coming in june
10 March 2008
Amendments to the Public Finance Management Act (PFMA) will be tabled during June, Finance Minister Trevor Manuel has announced in reply to a written question from Eddie Trent (DA).
Manuel said he had initiated a review of the PFMA with the objective of among others things “strengthening accountability of departments and public entities to parliament and to align its provisions with that of the Municipal Finance Management Act”. He said the tabling of the amendment Bill had followed extensive consultations.
Commenting on the reply, Trent, who withdrew a private member‘s Bill seeking to amend the Act at the request of the minister, said the aim was to make it compulsory for departments “dragging their heels” on the tabling of annual reports to submit their auditor general‘s report to parliament. The amendment, he said, would allow for the report to be tabled separately.
Trent cited the example of home affairs, which had only submitted its annual report and financial statements this year long after the deadline of August 31, making it difficult for the standing committee on public accounts to do its work within the stipulated time-frames. He said he welcomed the minister‘s announcement as the amendments were long overdue. “The Act is an outstanding piece of legislation, but after eight years problems have arisen with regard to implementation.”
Trent said the amendments would allow for a “higher level of accountability where we begin to be performance-oriented and aspects of government such as fruitless and authorised expenditure and value for money can be monitored more effectively”.
He stressed that while the amendments to the PFMA would assist, “until we start imposing penalties on defaulters as provided in the Act we are not going to get the desired results”.
Trent also cautioned that the legislation should be processed as speedily as possible.