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(DAILY MAIL) Improve budget execution - Kanganja

Improve budget execution - Kanganja
By ANGELA CHISHIMBA

SECRETARY to the Cabinet, Joshua Kanganja, has directed permanent secretaries to improve the execution of national budgets. And Secretary to the Treasury, Evans Chibiliti, has called upon permanent secretaries to start planning for procurement and tendering processes so that the implementation of projects could start as soon as the budget was approved by Parliament.

Dr Kanganja noted that Zambians expected services to be delivered and were in a hurry to see the country develop and move forward. He said this yesterday in Lusaka in a speech read on his behalf by his deputy, Likolo Ndalamei, during the official opening of a workshop for permanent secretaries on Treasury and Financial Management.

“I expect to see a major improvement this year in terms of budget execution, treasury and financial management. At the end of this year, we should receive a positive report that resources released have been properly spent and results achieved,” Dr Kanganja said.

He directed the Ministry of Finance and National Planning to start rating ministries, departments, provinces and spending agencies in treasury financial management and budget execution.

Dr Kanganja said the reports would be examined at the end of each year so that departments which performed poorly would be known and appropriate action taken.

“I therefore call upon all the implementing agencies to quickly put their respective houses in order and ensure that there is effective supervision,” he said.

Dr Kanganja said permanent secretaries should also take appropriate action including disciplinary measures against supervisors who certified shoddy civil work.

He said budget execution remained a major concern of many Zambians and government leaders.

He also said misapplication and misappropriation of funds had continued in spending agencies as attested by the Auditor General’s reports.

Dr Kanganja said there was need to review and examine whether contractors had the required capacities and competencies to effectively execute developmental programmes.

“The budget pronouncements are noble.

However, the real issue is whether implementation will take place in a manner that will achieve positive results and meaningful change to the lives of our people,” he said.

And Mr Chibiliti said government decided to hold the workshop before the approval of the national budget to plan its execution.

He said the treasury was concerned about the poor cash planning in ministries.

He said a number of ministries were still unsure that the Ministry of Finance and National Planning would fund them when they requested for resources at the time they were ready for spending.

Mr Chibiliti said as a result, the ministries made financial requests in advance which however remained unutilised until later.

He said requesting for resources in advance caused unnecessary accumulation of cash balances in commercial banks.

Mr Chibiliti called upon permanent secretaries to prepare budget execution profiles aligned to procurement plans.

He also said the use of electronic cash transfer should be accelerated this year in settling payments.

Mr Chibiliti said those with business contracts with government should be paid through the electronic cash transfer system for amounts exceeding K20 million.

He also said government was concerned about poor performance in many of the civil contracts awarded by the government.

Mr Chibiliti said government would review the way performance bonds for civil works were being given, including that of advance payments to contractors.

He said permanent secretaries should agree on whether it would be better for contractors to fund their works and get paid after they completed the job.

The workshop would come up with resolutions on how to prepare for the implementation of the 2008 budget programmes.

Labels: 2008 BUDGET, JOSHUA KANGANJA

posted by MrK @ 3:07 AM