Foreign consultants assess public finance management |01 October 2016
Two international consultants are currently in the country to assess the mechanisms and structures in place to manage public funds and identify areas of weaknesses for improvements.
This is the 3rd time that such an assessment is being carried out here – the 1st was in 2008 during the economic reform programme and the 2nd was in 2011.
The Public Expenditure and Accountability (PEFA) framework assessment is being funded under the 11th EDF Technical Cooperation Programme (TCF). The objective is to support government to enhance institutional capacities in identifying and implementing actions in line with the EU-Seychelles cooperation agenda.
During the two weeks that they will be here the two consultants --experts in economics and public finance Jean Marc Philip and Ferdinand Pot will visit different public enterprises to assess their finance management mechanisms.
On Thursday morning the two experts led a training session in the upgraded version of the PEFA framework methodology 2016. Managers of public finance, auditors, accountants and other stakeholders involved with budgeting in different ministries, departments and agencies attended the training session which was held at the STC conference hall.
Damien Thesee the Comptroller General of the Financial Planning & Control Division in the Ministry of Finance Trade and the Blue Economy said the new methodology ‘’will be good for us as it will show us what we need to do based on the weaknesses identified so we know how to improve on our scores’’.
He said the assessment being carried out as well as the training in the new PEFA methodology provide the opportunity to assess achievements made since 2011.
He added that the assessment outcome will result in the formulation of a revised Public Finance Management (PFM) action plan to help improve on areas of weaknesses and poor performances.
‘’Such assessments reinforce public finance management by ensuring best practices are adhered to through transparent and accountability measures , good monitoring and report mechanism ’’, Mr Thesee explained.
The government has a pertinent and credible plan to improve public finance management. Policy orientation continues to lay emphasis on improving PFM as a precursor to macroeconomic stability.
The International Monetary Fund (IMF) in its December 2015 report also recommended that a repeat PEFA be undertaken in 2016, in order to assess progress made in implementing the 2012-2014 PFM Action Plan, and to identify remaining challenges.
The adoption of a revised PFM Action Plan by the end of the year is one of the structural benchmarks retained under the IMF extended arrangement.