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STATEMENT BY THE SECRETARY GENERAL DURING STAKEHOLDER CONSULTATIONS FOR THE SADC MODEL LAW ON PUBLIC FINANCIAL MANAGEMENT, WITH REVENUE AUTHORITIES OF SADC MEMBER STATES - 22ND FEBRUARY 2022

SALUTATIONS

  • Thank you- Director of Ceremonies, Ms Caroline Kwamboka, Trustee and Founding Director of African Renaisance and a Member of the PFM TWG;
  • Our Keynote Speaker, Her Excellency Ms. Paulina Mbala Elago, Executive Secretary, Southern African Customs Union (SACU);
  • Distinguished Commissioners and officials from the Revenue Authorities of SADC Member States;
  • Members of the TWG on PFM;
  • Mr Daniel Greenberg, Legal Drafter for the SADC Model Law on Public Financial Management;
  • SADC Citizens following proceedings virtually on various social media platforms;
  • Staff of Parliaments and the SADC Parliamentary Forum;
  • Members of the Media;
  • Distinguished Participants;

I. Introduction

Dear Colleagues and distinguished participants,

It is with immense pleasure that I welcome you all to this Forum event which is being hosted in the margins of the development of the SADC Model Law on Public Financial Management (PFM).

It is not often that we interact with representatives of Revenue Authorities of the SADC region and hence I will say a few words about the Forum before proceeding with the rationale of our engagement today.

As you may be aware, the Forum is an institution of the SADC, representing its parliamentary arm at regional level.

The Forum regroups 15 Member Parliaments of the SADC region, and its overarching objective is to promote inter-parliamentary cooperation and diplomacy through targeted initiatives in view of heightening socio-economic development and democratisation in Southern Africa. PFM forms part of the endeavour of the Forum to promote prudential financial planning, which is a Strategic Objective under its Strategic Plan (2019-2023).

One of the key initiatives of the Forum is to develop Model Laws which act as normative standards that serve as guiding legislative benchmarks for national Parliaments. The development of Model Laws is a testament to the Forum’s belief in the Rule of law, and is paramount to spearhead the domestication of international best practices, hence the rationale behind the development of the SADC Model Law on PFM. 

The Forum has consulted with a series of stakeholders so far and this meeting with Revenue Authorities is crucial to add knowledge and value to the consultative process. 

Thus, thank you for participating and taking the time to interact at this session.

 

II. Why engage Revenue Authorities?

Distinguished Colleagues and Participants,

You will surely concur that revenue of the State is linked with the way public finances are being managed. Without PFM, revenue sources may be reduced or simply dry out.  

It was thus significant for the Forum to consult with representatives of Revenue Authorities since you are on the frontline of the revenue collection process and act as guardians to the State’s coffers.

In addition, the world is shifting from the notion of Revenue authorities being merely a traditional collecting agency to being an active advisory unit on policy including revenue administration, money laundering and the financing of terrorism. Revenue authorities thus have a huge portfolio of tasks which have inroads and linkages with the PFM framework of the State.

Revenue authorities are also recognised as investigatory units which witness the flows of money and are thus well placed to report suspicious transactions which may be harmful to the PFM framework.

Through your reporting lines, you also advise the Ministries of Finance and Economic Development, which formulate policies on PFM from the Executive perspective. 

Today, you are thus considered as an essential part of the PFM framework and your views on the Model Law will be highly valued. 

 

III. Expectations from the audience 

During this Consultative session, we expect that you engage openly and frankly with the legal drafter and the Rapporteurs and address issues of the Model Law which relate to flows of money especially from a revenue standpoint. You may for instance consider the provisions governing Cryptocurrencies under Part 12 and brainstorm about the ways in which revenue will be collected on same, or consider issues relating to Maladministration under Part 11. As revenue administrators, you may also consider the propriety of Part 10 relating to Public accounts and how public accounts should be reported.

It is well understood that different revenue authorities across SADC have different powers and functions, and thus you may identify different areas of the Model Law to engage upon.

 

IV. Way forward for Revenue authorities

Before I end, I wish to state that the Forum will continue to engage on revenue collection beyond the ambit of this consultative process. Indeed, it is expected that Revenue authorities will play a crucial role in domestication of the Model Law by exposing instances of financial maladministration and irregularities in cash flows which the Model Law attempts to eliminate.  Furthermore,  there will be ongoing collaborative opportunities for Revenue authorities to engage with the dedicated organ of the Forum, notably the Regional Parliamentary Model Laws Oversight Committee (RPMLOC) to report on the extent of the domestication process in each Member State in the coming years.

 

V. Conclusion 

As we start the consultative session, we should not lose sight of the fact that for most SADC Member States, revenue collection constitutes the main source of income of the country. It is with these public monies which are deposited into the Consolidated Fund that all expenditures relating to the State are made, and expenditures in turn entail the management thereof by a robust PFM framework.

Without proper revenue collection, the PFM framework would thus be non-existent.  At the same time, PFM also means collecting revenue properly and appropriately accounting for same with the necessary checks and balances. 

Your contributions today will thus go a long way ahead in finalising the Model Law and clearing the path to advocate for PFM reform in Southern Africa. 

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

 

Thank You.

 

Ms Boemo M.Sekgoma,

Secretary General,

SADC Parliamentary Forum

22nd February 2022

**

 

STATEMENT BY THE SECRETARY GENERAL DURING STAKEHOLDER CONSULTATIONS FOR THE MODEL LAW ON PUBLIC FINANCIAL MANAGEMENT, WITH REPRESENTATIVES OF OFFICES OF AUDITORS GENERAL 08TH FEBRUARY 2022

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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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