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26.07.2004 Business & Finance

Public Financial Management reforms on August 27

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Ho, July 26, GNA - The new public financial management reforms will become operational by August 27, this year, Alhaji Fuseini Baba-Seidu, Principal Economic Officer, Ministry of Finance and Economic Planning (MOFEP) said on Monday.

Alhaji Baba-Seidu speaking at a four-day stakeholders workshop in Ho, said the new Financial Administration Act, 2003 (Act 654), the Internal Audit Agency Act, 2003 (Act 658) and the Public Procurement Act, 2003 (Act 663) would ensure prudent and efficient public fiscal management, accountability and enhance transparency and judicious use of public resources.

About 455 participants from the Regional Co-ordinating Council, Ministries, Departments and Agencies (MDAs) and educational institutions in the Volta Region are attending the workshop organised by the MOFEP. Alhaji Baba-Seidu said Act 654, which replaced the Financial Administration Decree, 1979 (SMCD 221) was necessitated by structural changes in government administration and the need to ensure open and efficient utilisation of public finance.

He said the Act provided for the establishment of a Financial Administration Tribunal with the powers of a High Court to try prescribed acts of financial malfeasance.

Alhaji Baba-Seidu said Act 658 on the other hand, sought to strengthen the internal control audit functions of MDAs, Metropolitan, Municipal and District Assemblies (MMDAs).

He said, it makes it an offence and imposes penalties for wilfully suppressing information and documentation books.

Alhaji Baba-Seidu said Act 663 provided for a comprehensive and transparent legal and institutional framework to remedy the old system, which was fraught with weak capacity and inadequate procurement planning and procedures among other things.

The Volta Regional Minister, Mr Kwasi Owusu-Yeboa, urged the participants to take a keen interest in the re-engineering and prudent management of public finance.