New policy to guide expenditures from public funds |22 February 2018

A first policy to guide expenditures and payments for ministries, departments and agencies (MDAs) is now in force to control expenditures from public funds by public sector organizations.

The aim is to ensure transparent and accountable practices in government.

This policy aims to pay suppliers on time, give clear guidance to suppliers, and encourage good practices.

It is also important that the approval and commitment mechanism of each public sector must be run according to strict principles to ensure that the government becomes more efficient and adopts an efficient mechanism to settle payments to its creditors.

Among other areas, the policy provides details on the settlement of payments deadlines, internal processes of MDAs commercial transactions (procurement of goods and services) invoices should be settled within 10 working days (or 14 calendar days) and for small capital projects must not exceed 10 working days (or calendar 14 days). This will allow sufficient time for inspection of projects by the implementing agency.

For large infrastructure projects it must not exceed 15 working days (or 21 calendar days). Since all infrastructure projects are managed centrally by the finance department this should allow the department 7 working days for sample auditing, inspection and processing the payment to Treasury. Treasury will then settle all invoices submitted by the MDAs within 3 working days. Sufficient time should be given to ensure proper scrutiny of the payment vouchers by undergoing the necessary control procedures.

Any payment that is not effected within the payment timeframe will be subjected to an interest charge. The interest charge shall be borne by the respective MDAs through its allocated budget and will become payable for payments not exceeding 30 calendar days.

As per the policy, good commerce principles should follow all transactions; such as where possible a minimum of three quotations must be sought to ensure value for money, among other pre-requisites.