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STATEMENT BY THE SECRETARY GENERAL DURING STAKEHOLDER CONSULTATIONS FOR THE SADC MODEL LAW ON PUBLIC FINANCIAL MANAGEMENT, WITH LINE MINISTRIES AND REPRESENTATIVES OF ACCOUNTANTS GENERAL Featured

Our Keynote Speaker, Hon. Maureen Hinda- Mbuende,Deputy Minister of Finance ,in the Republic of Namibia, a distinguished Finance practitioner in both private and public spheres

  • Distinguished Gatekeepers and engines of our Ministries responsible for Finance, Economic Development, Good Governance and Institutional reforms, Planning Commissions, and Accountants General of SADC Member States and all Officials in their hierarchy;
  • Mr Daniel Greenberg, Legal Drafter for the SADC Model Law on Public Financial Management;
  • Meeting Facilitator, Mr Jason Rosario Braganza an Economist with over ten years’ experience working on international development in Africa specialising on trade and regional integration; finance for development and tax among others;
  • Representative of Media Organisations;
  • Distinguished Participants;
  • Ladies and Gentlemen;

Dear Colleagues and distinguished participants,

  • Introduction

Allow me to heartily welcome you as representatives of Line Ministries and Accountant General Departments to this consultative event held in the margins of the adoption of the SADC Model Law on Public Financial Management (PFM).

As you may be aware, the Forum is accustomed to engaging in multi-stakeholder consultative sessions prior to the adoption of its Model Laws in view of ensuring that the Model Law is as inclusive as possible taking into account the objective of the Forum to promote participatory democracy through the preparation of its legislative instruments.

In this respect, a series of consultations will be held with stakeholders and it has been deemed appropriate to engage representatives of Line Ministries and Offices of the Accountant General at an early stage in the consultation process in view of harvesting your crucial views on PFM from an administrative and governance perspective.

As you are aware, PFM involves diverse aspects all of which cannot be encapsulated in a single legislation. From procurement of contracts to financial instructions for Government to draw invoices, there is a range of PFM issues which prevail that needs to be mastered by representatives of Line Ministries and Accountants Generals.

You will find that the Model Law addresses PFM from the parliamentary angle, in other words from the effective oversight which may be exerted by Parliament over PFM processes which are conducted by the State through Line Ministries, the Accountant General or other statutory bodies. It is thus within this contextual framework that stakeholders present today should consider the provisions of the Model Law.

When examining the Model Law, you will thus be guided to comment on the interactions between Line Ministries and Accountants General on the one hand, and Parliament on the other hand.

  • Why engage Line Ministries and Accountants General?

I shall now say a few words on the reasons for engaging representatives of Line Ministries and Accountants General today.

It is commonplace that Line Ministries and Accountants General are the implementers of the PFM system. Line Ministries prepare the budget, manage public debt, engage in State expenditures, and monitor the whole system for discrepancies. While Line Ministries also engage in policy on PFM, the Offices of the Accountants General disburse funds and pay to the interested parties pursuant to receiving instructions to that effect. The main fund used by Government, which is often called the Consolidated Fund in many SADC Member States, is managed by Line Ministries with disbursements made by the Accountant General. You will kindly find that the notion of Consolidated Fund, and its management, equally prevails in the SADC Model Law under Part 4.

Line Ministries and the Accountant General both comply with the appropriation ceilings approved by Parliament through Budget legislation and they adhere to the existing PFM framework. These aspects are covered under Part 5 of the Model Law.

In this respect, there can be no better than Line Ministries and representatives of Accountant General Offices to give their constructive views on the existing PFM framework and comment on the SADC Model Law in view of enhancing same for the guiding reference of Member States. Whilst you will note that the Finance Ministry is involved with nearly all Parts of the SADC Model Law, especially Parts 3 to 8, there is also the necessary reporting to Parliament which is conducted through Parliamentary Questions and the tabling of financial reports.

It is apt to add that from a policy perspective, all regulations pertaining to PFM are developed by the Finance Ministry, although the regulations may be mainly for logistical purposes where independent institutions such as the Office of the Auditor General or the Central Bank are concerned.

In addition, I wish to emphasize that Line Ministries will be the principal protagonists involved in the eventual domestication of the SADC Model Law on PFM after its adoption. Hence, it is imperative for representatives present today to understand the main provisions of the Model Law in view of working out how they compare with national legislation, and earmark the areas for improvement which could be made at national level at the appropriate legislative opportunity.

Furthermore, representatives of Line Ministries and Accountant General Offices also interact with Ministers and Parliamentarians, and are best placed to advise them on the reforms which need to take place to improve the PFM framework of Member States. You are permanent advisers and counsellors on PFM processes and since most of you are public officials, you remain unaffected by election cycles and thus stay on to advise successive governments. It

is thus quintessential that you are capacitated on the PFM Model Law well before the legal instrument is adopted and communicated to Member States through their domestic parliaments.

  • Expectations from the audience

Charting the way forward, I would like to mention that today, a presentation will be made by the legal drafter on the PFM Model Law which will cover aspects that relate to Line Ministries and Accountants General. You are invited to engage comprehensively with the presenter and pinpoint any areas for improvement. In addition, you may also wish to submit your comments in writing after the end of the session. Same will considered by the legal drafter in view of alignment with international best practices and eventual incorporation in the Model Law.

You are also invited to comment on the adequacy of the Model Law and to express your views on the significance of this legislative instrument developed under the auspices of the SADC-PF.

  • Way forward in terms of domestication

As mentioned earlier, the Model Law will be progressively domesticated at national level, with Line Ministries and Accountants General playing a crucial role to unpack the Model Law for the understanding of MPs and other stakeholders, as well as facilitate its acceptance at institutional level.

Progressive domestication will also be buttressed by the Forum’s dedicated organ in the form of the Regional Parliamentary Model Laws Oversight Committee (RPMLOC) which consists of MPs who are Chairpersons of all Standing Committees of the Forum. After the adoption of the Model Law, parliamentary Scorecards will be issued to Line Ministries to fill in view of setting a baseline and monitoring domestication progress. Representatives of Line Ministries and Accountant General Offices will thus be called upon to contribute to the Scorecards at the appropriate time.

  • Conclusion

Dear Colleagues and distinguished participants,

I wish to end these introductory remarks by thanking you again for your participation. Ministries and departments such as the Offices of the Accountant Generals are significant scaffolds which tightly fasten together the structure of a healthy parliamentary democracy. If one part of the scaffold falters, the whole structure is put at risk and may threaten to collapse. Your roles are thus pivotal to PFM and your contributions today will likewise constitute important intel that will serve to steer the PFM Model Law to its right destination.

On this thankful note, I wish you all a pleasant session.

Thank you.

Ms. Boemo Sekgoma, Secretary General,

SADC Parliamentary Forum 15th February 2022

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STATEMENT BY THE SECRETARY GENERAL DURING STAKEHOLDER CONSULTATIONS FOR THE SADC MODEL LAW ON PFM LINE MINISTRIES

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O Fórum Parlamentar da Comunidade para o Desenvolvimento da África Austral (SADC PF) foi criado em 1997, em conformidade com o Artigo 9 (2) do Tratado da SADC como uma instituição autônoma da SADC. É um órgão interparlamentar regional composto por Treze (14) parlamentos representando mais de 3500 parlamentares na região da SADC. Consulte Mais informação

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