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H.B. 4, 2021.]


Public Finance ManageMent aMendMent





The purpose of this Bill is to amend the Public Finance Management Act [Chapter 22:19] so as to align it with the provisions of the Constitution of Zimbabwe, inter alia, in the following respects:

Clause 1

This clause cites the title to the Bill as the Public Finance Management Amendment Bill, 2021.

Clause 2

New     definitions        of         “assets”,           “grant”, “liabilities”,      “public property”,            “Treasury         memorandum”  and       “virement”        will      be         inserted in            the       principal           Act       by        this      clause.  The      definition          of            Auditor-General will      be         amended           so         as         to         refer     to            the       current name    of         the       office    under   the       Constitution      of            Zimbabwe        and       to         cross-refer         to         the       correct  section in            the       Constitution.                 The      definition          of         “financial            statements”       will      be         replaced by        a          wider    definition.

Clause 3

This clause will provide for a new provision on the objects of the principal Act.

Clause 4

Clause 4 will amend section 4(1) of the principal Act so as to provide for provincial and metropolitan councils and local authorities.

Clause 5

A new Part IIA will be inserted in the principal Act which will provide for Parliamentary            oversight          of         State    revenues           and       expenditure.      A         new            clause   5A        will      provide for        Parliament        to         monitor and            oversee public   finances,           while    the       new      clause   5B        will      state            the       responsibilities  of         a          Parliamentary    Committee        on            budgets and       a          new      clause   5C        will      provide for        the            responsibilities  of         the       Public   Accounts          Committee.

Clause 6

This clause will insert a new subsection (3a) in section 6 of the principal Act which will            require  the       written instructions       issued   by        the       Accounting            Officer  to         be         approved           by        Treasury           and       to         be            submitted          to         the       Auditor-General.

Clause 7

Clause 7 will repeal paragraph (b) of section 7(1) of the principal Act and will substitute new paragraphs (b) and (c). The new paragraph (b) will state the Minister of       Finance’s          duty            as         advising the       government       on        the       allocation          of            public   resources          between ministries, public entities, etc., while the new paragraph (c) will require the Minister        to         provide guidance           on        measures          to            be         adopted by        Government      to         ensure  the       balanced allocation of resources.

Clause 8

A new section 10A will be inserted in the principal Act which will provide for the    office    of            a          Director responsible       for        finance in         each     Ministry.

Clause 9

This clause will replace section 12(8) so as to provide for appeals to be lodged with  the            appropriate       Minister and       for        appeals to         be         submitted          to            the       Auditor-General for comments.

Clause 10

Clause 10 will insert new sections 12A, 12B and 12C into the principal Act.  The new            section 12A      sets      out       the       duties   of         custodians         of            public   funds    and       public   property.           The      management      of            State    assets   is          provided           for        in         the       new      section            12B.                 The      new      section 12C      will      provide for        Treasury            to         impose a          surcharge          on        any       person  who      has       the            responsibility    of         collecting          moneys where   such     moneys are            found   to         be         deficient,          or         where   there    is          a          loss            of         public   moneys, etc.

Clause 11

Section 16        of         the       principal           Act       will      be         repealed and            substituted        by        this      clause.  The      new      clause   will      require  all            revenues           to         be         paid      into      the       Exchequer        Account.

Clause 12

This clause will repeal and replace section 17 of the principal Act and will provide for          the            control of         expenditure       from     the       Consolidated     Revenue            Fund.

Clause 13

Clause 13 will insert new sections 17A and 17B into the principal Act.  The new section       17A            will      require  costs     and       expenses           to         be         direct    charges            against the       Consolidated     Revenue           Fund.               Grants  of            credit    will      be         charged against the       Consolidated     Revenue            Fund in terms of the new section 17B.

Clause 14

Clause 14 will make provision for the appointment of management committees by    an            accounting        officer  under   the       new      section 18(12).

Clause 15

This     clause   will      amend  section 19        of         the       principal           Act       by            deleting the       reference          to         “House of         Assembly”        and            substituting       it          with     “National          Assembly”        in         accordance            with     the       Constitution      and       by        substituting       the       correct            cross-reference  to         the       particular          section of the Constitution.

Clause 16

Section22        of         the       principal           Act       will      be         repealed by        this            clause   and       replaced with     a          provision          which   provides            for            Treasury           to         establish           banking accounts           with     the            Reserve Bank    or         an        authorised         financial           institution.

Clause 17

This clause will amend section 24 of the principal Act so as to provide for issues authorised  to            be         included           in         additional         or         supplementary   estimates            of         expenditure.

Clause 18

Clause 18 will substitute section 27(1), which will provide for the President to authorise       the            issue     of         money  from     the       Consolidated     Revenue           Fund,            during  the       dissolution        of         Parliament,       so         as         to            carry     on        the       services of         Government.

Clause 19

A         new      section 27A      will      be         inserted into      the       principal           Act            by        this      clause.              The      new section       27A      will      provide for            the       preparation       of         estimates          of         revenue and       expenditure.

Clause 20

This     clause   will      amend  section 28(2)    and       (3)        by        deleting “House of            Assembly”        and       substituting       “National          Assembly”        so         as            to         correctly           refer     to         the       chambers          as         cited     in            the       Constitution.                 Section 28(4)    as         amended           will            require  the       Minister of         Finance to         submit  separate estimates          of            revenue and       expenditure       for        each     Commission,     the       office    of            the       Auditor-General,           etc.

Clause 21

Clause 21 will insert new sections 28A, 28B and 28C.  The new section 28A will make provision for the management of budgets and the new section 28B will provide for      the       management            of         cash.                Additional        and       supplementary   estimates          will            be         provided           for in the new section 28C.

Clause 22

 A         new      section 29A,     which   provides            for        Virementing,     will      be            provided           for        by        this      clause.

Clause 23

Section31(1)    of         the       principal           Act       will      be         substituted        in            terms    of         this      clause   and       will      provide for        the       expiry   of            provisions         which   have     been     made    in         an        Appropriation    Act            and       which   have     not       been     expended          in         the       particular            financial           year,     at         the       end       of         that      financial            year.

Clause 24

 This clause will insert a new section 31A in Part IV of the principal Act which will  provide for            the       details  relating to         financial           reporting.

Clause 25

 Clause 25        will      substitute          section 32(1)    which   will      require  directors            responsible       for        finance to         prepare or         cause    to         be            prepared,          the       annual  financial           statements         of         the            particular          Ministry           and       to         submit  the       statements         to            the       accounting        officer.

Clause 26

 Clause 26        will      repeal   and       replace  section 35        of         the       principal            Act.                  The      new      section 35        will      require  accounting            officers to         keep     proper   records of         accounts,          and       to            submit  statements         to         the       Auditor-General and       Accountant-General            within  30        days     after     the       end       of         the       financial            year.                 The      Accountant-General       will      be         required to            prepare financial           statements         on        the       Consolidated     Revenue            Fund    and       to         submit  the       statements         to         the       Auditor-General.

Clause 27

Under this clause a new section 36A will be inserted into the principal Act.  This new            provision          will      require  the       accounting        officer  of         a            constitutional    entity   or         public   entity   to         submit  annual  reports  and            financial           statements         to         the       National           Assembly,         the

Minister of         Finance, the       appropriate       Minister,           the       Accountant-General            and       the       AuditorGeneral.

Clause 28

This clause will replace section 37 of the principal Act, which will provide for financial            statements         to         comply with     the       generally          accepted            accounting        practices           as         approved           by        the       Accountant-General.

Clause 29

Clause  31        will      substitute          section 81        of         the       principal           Act            and       provide for        external auditors.                       The      clause   will            provide for        the       procedure         to         be         followed           by        the            AuditorGeneral in         cases    where   he        or         she       believes that            there    are        irregularities      in         the       management      of         public            moneys.

Clause 30

Section83        of         the       principal           Act       will      be         repealed and            replaced by        this      clause.              The      new      section 83        will            require  the       Auditor-General or         any       independent      auditor to            audit    financial           statements         and       the       provision          sets      out            the       details  required to         be         mentioned         in         the audit.

Clause 31

A new section 84 will be inserted in the principal Act under this clause.  The new section      84            will      provide for        audit    committees       to         be         established        in            Ministries,        statutory           funds, constitutional entities, etc.  The responsibilities of audit committees are detailed in the provision.

Clause 32

This clause will amend section 90(1) so as to provide for the deposit of unclaimed moneys    in            any       bank     account of         a          Ministry,          constitutional    entity,   etc.,            with     the       Treasury.

Clause 33

Clause 33 will insert new sections 90A and 90B.  The new section 90A will provide for            retention           moneys and       the       new      section 90B      will      provide for            the       recovery           of         debts    due       to         the       State.

Clause 34

This     will      insert    a          new      clause   which   would   provide for        transitional            financial           provisions of the Provincial and Metropolitan Councils.


To amend the Public Finance Management Act [Chapter 22:19]; and to provide for matters connected with or incidental to the foregoing.

ENACTED     by        the       Parliament        and       the President                                           of Zimbabwe.

5             1 Short title

This      Act    may                                                                                                                 be    cited                                                                                                                 as      the   Public                                                                                                       Finance Management                                                                                          Amendment      Act,   2021.

 2 Amendment of section 2 of Cap. 22:19

Section        2          (“Interpretation”)           of         the principal                                          Act           is          amended—

(a)                                  by the       insertion           of         the       following definitions—

10                               “assets”   means  resources          controlled         by        an  entity   as         a          result    of         past      events  and  from     which   future   economic          benefits or         service  potential           are        expected           to         flow     to         the  entity;

“Auditor-General” means  the       person  appointed          as         such  in         terms    of         section 310 of the Constitution;

15                               “financial assets”  include deposits,           cheques,           loans,  accounts           receivable         and marketable securities including bonds, notes and shares;

“grant”     means—

(a)                                                                                     an  amount                      of                                                                               money      that      is                       given                                                                                   by      a government                 to                                                                                        a   public

entity          to         be         used     for        a          particular       purpose;           or

H.B. 4, 2021.]

Printed by the Government Printer, Harare

(b)   an        amount of         money  designated        as         such       by        the       Appropriation    Law.

                          “liabilities”     means  present obligations        of         the          entity   arising  from     past      events,  the       settlement          of         which   is          expected           to         result    in          an        outflow
from  the       entity   of         resources          embodying          economic          benefits or         service  potential;

“public           funds”  includes any       money  owned  or          held      by        the       State    or         any          institution         or         agency  of         government,          including          provincial         and       local     tiers          of         government,      statutory           bodies   and          government-controlled   entities;

“public           property”          means  any       property owned          or         held      by        the       State    or         any          institution         or         agency  of         government,          including          provincial         and       local     tiers          of         government,      statutory           bodies   and          government-controlled   entities;

“Treasury       memorandum”  means  an        action   report          by        the       Minister detailing           the actions taken on the recommendations of Parliament arising out of       the          report   of         the       Auditor-General;

“virement”     means  the       application,       as          authorised         by        an        Appropriation    Act,          of         savings on        a          subhead of         a          vote      to         meet     excess   expenditure       on          another subhead or         expenditure       on        a          new      subhead of         the       same    vote;

(b)      by the       repeal   of         the       definition          of         “financial    statements”       and       the       substitution


“financial       statements”       in         relation to—

(a)       the State    finances of         Zimbabwe        means—                           (i)         a          statement          of         cash    receipts and       payments;

(ii)      accounting policies and       explanatory       notes;

(iii)    where       an        entity   makes   publicly available           its    approved           budget, a comparison of budget and actual amounts either as    a          separate additional         financial    statement          or         as         a          budget  column in    the       statement          of         cash     receipts and    payments;         and

(iv)     other         reports  that      the       Accountant-General    may      require;

(b)      a   public   entity   or         statutory           fund     or         a    fund     established        by        or         in         terms    of    this      Act,      means—

(i)       a         statement          of         financial           position;

(ii)      a statement of comprehensive income;

(iii)    a         statement          of         cash-flow;

(iv)     audited or         unaudited          monthly,           quarterly           or         annual  financial


(v)      any      other    statements         that      may      be           prescribed;

(c)       a   fund     established        by        or         in         terms    of         this    Act—

(i)       a         statement          of         financial           position;

(ii)      a         statement          of         financial           performance;

(iii)    a         statement          of         changes in         net           assets   or         equity;










  • a statement of         cash-flow;
  • where an        entity   makes   publicly available           its   approved           budget, a comparison of budget and actual amounts either as  a          separate additional         financial   statement          or         as         a          budget  column in   the       financial           statement;         and

5                                              (vi)      notes,   comprising        a          summary          of           significant         accounting        policies and           other    explanatory       notes;

(c)      in         the       definition          of         “revenues”        by        the          deletion of         “section 101”     and       the       substitution       of          “section 302”.

 3 Amendment of section 3 of Cap. 22:19

10 Section                                                      3   of         the       principal           Act       is  repealed                                                    and  the       following          is substituted—

“3. Object of Act

The          object   of         this      Act       is          to—

(a)                                                                           secure transparency,           accountability                                                                       and   sound                   management

of     the       revenues,          expenditure,      assets   and       liabilities          of         any

15                                                                                                    entity specified           in         section 4(1);

(b)   ensure                                                                                                         public  finances                                                                                                             are managed                                                                                                              in accordance                                                                                                        with      the

principles    set        out       in         the       Constitution.”.

  • Amendment of section 4 of Cap. 22:19

Section 4          (“Application    of         Act”)    of         the       principal           Act            is          amended           in         subsection         20 (1)    by        the       insertion            after     paragraph         (d)        of         the       following          paragraphs—     “(e)            provincial         and       metropolitan      councils;           and                      (f)           local               authorities.”.

  • New Part inserted in Cap. 22:19

The principal                                                                                                           Act      is amended                                                                                                             by      the insertion                                                                                                          after      Part       1                                                                                                                   of      the following                                                                                                       Part—

25 “PART                                                          IIA

ParliaMentary oversight of state revenues and exPenditure

5A Parliament to monitor and oversee Public Finances

(1)        The      National           Assembly         shall,    through          parliamentary    portfolio           committees,      monitor and          oversee expenditure       by        the       State    and       all

30                                                                                                                                                                              Commissions      and                                                                                                              institutions      and                                                                                                                  agencies      of                                                                                                             government      at                                                                                                                      every                                                                                                                      level,

including        statutory           bodies,  government-controlled   entities,          provincial         and       metropolitan      councils and       local          authorities,        in         order    to         ensure  that—

  • all revenue is accounted for;
  • all expenditure       has       been     properly incurred;           and

35                                          (c)           any       limits   and       conditions         on   appropriations   have     been     observed.

(2)        The      Speaker of         Parliament        shall     designate          Parliamentary    Portfolio           Committees       according          to          government       portfolios,         to         examine the       expenditure,          administration   and       policy   of         government       departments.

40                           5B Responsibilities of Parliamentary Committee on Budgets

  • The Speaker of         Parliament        shall     designate          a            Parliamentary

Committee      of         the       National           Assembly         to         deal          with     finance and       budgetary         matters.

  • The Committee established in terms of subsection (1) shall

deal    with     representations  by        commissions     and       other          constitutional    entities as         to         the       funds    to         be          allocated           to         them    in         each     financial          year.

5C Responsibilities of the Public Accounts Committee

(1)      The  Speaker            of                                                                                   Parliament      shall designate           a                                                                                          Public Accounts

Committee      whose   mandate shall     be         to         examine the          financial           affairs   and       accounts           of         Government          Departments,     state     owned  enterprises,       provincial         and metropolitan councils and local authorities.

                             (2) The Committee designated in terms of subsection (1) shall be
responsible       for        examining         all        reports  of         the       Auditor-General.

(3) The Committee performs an oversight role of reviewing the financial    statements         of         Departments      funded  from     public   funds.

5D Parliament to observe standing rules and orders

In         discharging       its        functions          in     terms    of         sections 5A,       5B        and       5C,       the     parliament        shall     pay       due       regard   to         the     standing rules     and       orders.”.

6       Amendment of section 6 of Cap. 22:19

Section 6          (“Treasury        to         manage and       control public            resources”)       of         the       principal           Act       is          amended            by        the       insertion           after     subsection         (3)        of            the       following          subsection—

“(3a)     The      written departmental     instructions       issued   by        the       Accounting       Officer  in         terms    of         subsection        (3)        shall     be         approved           by        Treasury           and        a          copy     of         the       approved           departmental        instructions       shall     be         submitted          to         the        Auditor-General.”.

7       Amendment of section 7 of Cap. 22:19

Section 7          (“Duties and       powers  of         Minister”)         of            the       principal           Act       is          amended           in         subsection            (1)        by—

(a) the repeal of paragraph (b) and the substitution of the following paragraphs—

“(b) to         advise   the       Government      on        the      allocation          of         public   resources          as      between ministries, reporting units, public entities, constitutional entities,          metropolitan      provinces,      local     authorities         and       any       programmes      of         Government      independent      of         the      foregoing;

(c)                                               to        provide guidance           on                  measures                                         that      should  be         adopted by

Government to         ensure  resource allocation      processes,         promote balanced           national      development,    gender  parity   and       equity      responsiveness.”.

8       New section inserted in Cap. 22:19

The      principal           Act       is          amended           by        the            insertion           after     section 10        of         the       following            section—

“10A                     Director responsible     for        finance

(1)   The         day-to-day        operations         of         public   finance systems in

Ministries  shall,    subject to         this      Act,      be     controlled         and       managed           by        a     Director responsible       for        finance, whose   office    shall     be         a          public   office    and       shall     form     part     of         the       Civil     Service, and       who      shall     report     to         the       accounting        officer  appointed          in     terms    of         section 10.

(2)   The         Director responsible       for        finance shall   be         directly accountable       to         the   accounting        officer  of         a          Ministry   for        ensuring           the       performance      and   exercise of         the       functions          of         the   finance office.”.









 9 Amendment of section 12 of Cap. 22:19

Section      12        (“Loss  or         destruction        of         or         damage to     State    property”)         of         the       principal           Act       is          amended     by        the       repeal   of         subsection         (8)        and       the       substitution     of—

“(8)      An   appeal                                                                                                               in   terms                                                                                                                of subsection                                                                                                           (7)      shall      be lodged                                                                                                     with      the appropriate

5 Minister        who,     before   forwarding        it          to         the       Minister,           shall submit  it          to         the       AuditorGeneral for        any       comments         he or         she       may      wish     to         make    thereon.”.

10 New section inserted in Cap. 22:19

The           principal           Act       is          amended           by        the       insertion     after     section 12,       of         the       following          sections—

10                           “12A Duties of custodians of public funds and public property

  • Any person who      is          responsible       for        the       expenditure       of public

funds shall ensure that such funds are spent in accordance with authorised purposes and authorised amounts.

  • Any person who      has       the       custody or         control of         publicproperty

15 shall                safeguard        such     property and       ensure  that      it          is          not          lost,      damaged,          destroyed,         misapplied        or          misused.

12B Management of State assets

(1)        Every   accounting        officer  shall     be         responsible          for        the       assets   of         the       Ministry           for          which   he        or         she       is          accountable.

20                      (2)                                                                                               In carrying           out                                                                                             the responsibilities referred                                                                                           to      in subsection

(1)      every    accounting        officer  shall     ensure  that      proper          control systems exist     for        the       custody and       management          of         the       assets.

(3)  Control  systems  for  asset  management  shall  ensure that

preventive mechanisms are in place to eliminate loss, theft, wastage and

25                                       misuse.

  • Every accounting        officer  shall     keep     asset     records, both        manual

and     electronic,         that      ensure  effective,          efficient,          economical       and       transparent        use of assets.

  • Every accounting        officer  shall     conduct a          periodical        physical 30               verification       of         State

12C Treasury surcharge

(1)      In         this      section—

“a    surcharge”        shall     apply    to         persons who      are        in         the        employment      of         the       State    or         who      were     in         the        employment      of         the       State    at

35                                                                                                                                                                                                      the      time                                                                                                                           of      any                                                                                                               deficiency      in                                                                                                                           or                                                                                                                 improper                                                                                                                  payment      of,                                                                                                                           or

any          payment           not       duly     vouched for        or   loss      or         destruction        of,        public   moneys for   which   they     were     responsible;

“any        reference          to         moneys”           shall     be   construed          as         including          a          reference to tokens, stamps or other such instruments which

40 have a face value or are to be sold for an amount shown on the    face      thereof and,      in   the       case      of         any       deficiency         in         such   instruments,      a          surcharge          in         terms    of   this      section may      be         calculated in relation to the face value of such instruments.

(2)   If—

45   (a)                             it                                                                           appears      to     the                        Treasury                                                                           that      any   person                          to                                                                            whom      the

provisions     of         this      section apply    was      responsible       for—

  • any deficiency         in         the       collection          of         or         accounting         for

public         moneys; or

  • any improper           payment           of         public   moneys; or
  • any payment           of         public   moneys which   is          not       duly         vouched for        and       the       Treasury           is          satisfied that      such         payment           has       resulted in         a          loss      of         public         moneys or         a          further  payment           of         public   moneys in         respect  of         the       same matter; or
  • any deficiency         in         or         destruction        of         public   moneys; and
                                                (v)        an        explanation       satisfactory   to         the       Treasury           is          not,   within  a          period   specified           by   them,    furnished          to         them    with   regard   to         such     irregularity        as   is          referred to         in         paragraph (a);

the Treasury           may      impose a          surcharge          against     the       said      person  the       amount of         any       sums     not       collected           or         accounted         for        or     the       amount of         any       deficiency         in         or     improper           payment,          payment           not       duly     vouched for        or         loss      or         destruction        of     public   moneys, as         the       case      may      be:

Provided           that      no        surcharge          may      be     raised   against any       person  who      has acted in good faith and without gross negligence,

(3)           The      Minister may      at                any                                              time          withdraw          a          surcharge—

(a)       in respect  of         which   a          satisfactory       explanation       has    been     received; or

(b)      if it otherwise appears to him or her that no surcharge should have been made.

(4)    Whenever   the       Treasury           raises    a          surcharge          in      terms    of

subsection  (2)        or         withdraws         a          surcharge          in     terms    of         subsection         (3),       they     shall     immediately      notify   the       appropriate       accounting     officer.

(5)    Any person  who      is          dissatisfied        with     a          surcharge      raised   against him      or         her       by        the       Treasury,          he      or         she       may,     within  a          period   of         one       month      after     he        or         she       has       been     notified thereof or      such     further  period   as         the       appropriate       Minister in      special  circumstances    may      allow,   appeal   in         writing to the Minister against such surcharge, giving his or her reasons as     to         why      he      or         she       feels     that      he        or         she       should  not      have     had       a          surcharge          imposed on him or her.

(6)    An appeal   in         terms    of         subsection         (5)        shall     be      lodged  with     the       appropriate       Minister who      shall     submit  it      to         the       Treasury           for        its        consideration.

(7)    After          considering       an        appeal   in         terms    of         subsection      (5)        the       Treasury           shall—

(a)       reject the appeal; or

(b)      make an order directing that the person concerned be released

wholly or         in         part      from     the       surcharge;          as         may      appear  to         it          to          be just and reasonable.

(8)         A surcharge    raised      by    the Treasury               which         has        not       been

withdrawn or from which the person concerned has not been released in terms         of         section 5          shall     be         a          debt     due       to         the       State.









(9)        The      amount of         any       surcharge          which   has          been     recovered          shall     be         paid      to         the          Consolidated     Revenue           Fund    or         the       account in          respect  of         which   the       surcharge          was      raised.”.

 11 Amendment of section 16 of Cap. 22:19

Section 16        of         the       principal           Act      is                                                    repealed           and       the       following substituted—

“16 Money to be paid into Exchequer Account

(1)    In         subsection         (5)—

5 “small-scale                                                                                           commercial   land”                                                                                                              has      the meaning                                                                                                         given      to      it                                                                                                                  by

section    2(1)      of         the       Rural    District Councils   Act       [Chapter 29:13].

(2)        Subject to         this      section and       section 18(9),   all          revenues           shall     be         paid      into      the       Exchequer          Account.

10                                 (3)        A         receiver of         revenue may,     if          authorised          by        the       Treasury           and       subject to         such          conditions         as         may      be         fixed     by        the          Treasury,          withhold           from     the       Exchequer          Account revenues           which   have     been     collected           and          shall retain revenues so withheld in a deposit account for the purpose of making           refunds of         revenues           or         money  erroneously          brought to         account as

15                                      revenues.

  • Public moneys that      are        not       revenues           shall,    if          so            prescribed,        be         paid      into      the       Exchequer        Account with            effect    from     such     date      as         may      be prescribed.
  • Revenues received from     the       lease     of         a          business or            residential

20 site                 in       small    scale     commercial       land      shall     be         paid      to          the       local     authority           in         whose   area      that          business or         residential         site       is          situated.”.

 12 New section substituted for section 17 of Cap. 22:19

Section      17      of                                                                                                                 the principal                                                                                                           Act      is repealed                                                                                                            and      the following                                                                                                      section      is substituted—

“17 Control of Expenditure and issues from the Consolidated

25                                                   Revenue Fund

(1)        Notwithstanding anything           to         the       contrary          contained          in         any       other    enactment—

(a)   no  payment  involving  a  charge  upon  the Consolidated

Revenue       Fund    shall     be         made    without the       written authority

30                                                                                       of  the       Treasury;

(b)           no                                                                                                    expenditure      of   public                                                                                                       moneys      shall      be                                                                                                         incurred      on     any

service     unless   provision          therefor has       been   made    by        or         in         terms    of         this      Act   or         any       other    enactment.

(2)      The Treasury          may                                                                                    authorise      the    issue            from                                                                                            the Consolidated

35 Revenue          Fund  of         money  appropriated      by        this      Act       or         any          other    enactment         to         any       specific purpose—

  • not exceeding         the       amount so         appropriated;     or
  • where the appropriation     is          made    for        a          specificpurpose

without         specifying         the       amount so         appropriated,     the       amount

40                                                                                                                                                                                       estimated      by                                                                                                                         the                                                                                                                 Treasury      to                                                                                                                           be                                                                                                                  required      for                                                                                                                       such                                                                                                                  purpose.

(3)        The      Treasury           may      authorise           the          issue     from     the       Exchequer        Account of—

  • any amount which   it          considers          appropriate       to         withdraw         from     the       Exchequer        Account for        investments       otherwise         than

through the accounts established in terms of section 22(1) which   form     part      of         the       Exchequer        Account;

  • any public   moneys, that      are        not       revenues,          which   have     been         or         may      be         paid      into      the       Exchequer        Account for         any

(4) Notwithstanding any                                                                                    authority   issued             in                                                                                          terms      of subsection

(2)      or         (3),       the       Treasury           may      limit     or          suspend any       expenditure       authorised         by        such          authority           if,         in         its        opinion, such     action   is          in         the       public   interest.

  • Where, prior     to         the       closing of         the       accounts           of         a       financial           year

which   relate    to         money  appropriated      by        any       enactment,        it          is            found   that

an                                                 amount                                                                          has                                                  been                                                                    improperly                                           charged                                                                       against                                                such                                                                  appropriation,                                           that                                                                           10

amount shall     be         disallowed        and       the       expenditure       recorded            against that

appropriation     in         that      financial           year      shall     be         reduced by        the            amount so


  • Any expenditure disallowed        in         terms    of         subsection         (5)        shall

be                                                   dealt                                                                         with                                                    as                                                                           an                                                advance                                                                           in                                                   terms                                                                           of                                                 section                                                                          25                                                   until                                                                         such                                                  time                                                                           as                                                    the                                                                           15

amount has       been     recovered          or         the       charge  has       been     otherwise            adjusted.”.

  • New section inserted in Cap. 22: 19

The principal                                                                                                           Act      is amended                                                                                                             by      the insertion                                                                                                          after  section                                                                                                              17      of     the                                                                                                       following


“17A Costs and expenses to be direct charges                         20

(1)   Costs            and                                                                                    expenses incurred            in                                                                                    collecting      and managing          the

Consolidated     Revenue           Fund    shall     be         direct    charges against such            fund.

17B Grants of credit on the Consolidated Revenue Fund

  • When an        issue     from     the       Consolidated     Revenue           Fund    or

Exchequer                                          Account                                                                          has                                                  been                                                                     authorised                                               in                                                                        terms                                                   of                                                                          this                                                  Act,                                                                          the                                          Accountant-                                                                           25

General may      by        requisition,        from     time     to         time,    require  the            Minister to

grant    a          credit    on        the       Exchequer        Account not       exceeding         the            aggregate          sum

authorised in terms of the Act.

  • On receipt  of         a          requisition        in         terms    of         subsection         (1),      the

Minister                                               shall                                                                         grant                                                    a                                                                        credit                                                  on                                                                          the                                             Exchequer                                                                      Account                                                 in                                                                    accordance                                               30

with     such     requisition        if          he        or         she       is          satisfied that—

  • the amount has been     lawfully authorised;        and
  • the amount so requisitioned,    together with     any       other    amounts

previously         requisitioned     during  the       financial           year,     does     not

exceed                                       the                                                                               aggregate                                   amount                                                                                   that                                         may                                                                                lawfully                                       be                                                                              authorised.                                      35

  • A credit    granted by        the       Minister in         terms    of         subsection         (2)

shall     constitute          the       necessary          authority           to         the       Reserve            Bank    to         transfer the

amount specified           therein  from     the       Exchequer        Account to         the            Paymaster-

General’s          Account in         accordance        with     the       directions          of         the            Treasury.

  • Statements showing payments          into      and       withdrawals      from     the       40

Exchequer        Account shall     be         rendered           by        the       Reserve Bank    to            the       Treasury

at         such     intervals           and       in         such     form     as         the       Treasury            may      direct.”.

  • Amendment of section 18 of Cap. 22:19

Section      18 (“Establishment                                                                                                     of    other                                                                                                          public  funds”)                                                                                                               of      the principal                                                                                                           Act      is amended

by                                                                          the                                                insertion                                                                     after                                               subsection                                                                    (11)                                                     of                                                                          the                                               following                                                           subsection—                                                     45

“(12)     An       accounting        officer  may      appoint management      committees to         assist    him      or         her       in         the       managing          of         the financial           affairs:

Provided that the roles and responsibilities of these committees are stated in writing     and that      any       fees      paid      to         members           of         such     committees are        paid      in         accordance        with     the       provisions         of         this Act.”.

  • Amendment of section 19 of Cap. 22:19

Section      19        (Anticipated      or         unauthorised     excess   expenditure)      of     the       principal           Act       is          amended—

(a)                        by          the       repeal   of         subsection         (1);

10                       (b)      in         subsection         (2),       by        the       deletion of          “House of         Assembly”        and       the       substitution       of          “National          Assembly”        wherever          it          occurs;

(c)      in         subsection         (3),       by        the       deletion of          “section 103(5)” and       the       substitution       of         “section          307(2)”.

16 Amendment of section 22 of Cap. 22:19

15 Section                                                     22  of         the       principal           Act       is repealed                                                    and the       following          is substituted—

“22 Establishment of banking accounts

(1)      The Treasury         shall                                                                                    establish      an  account          with                                                                                            the  Reserve

Bank or         an        authorised         financial           institution,        to         be        known  as         the       Exchequer

Account       and       such     account shall     be         for        the       deposit of        moneys forming the

20                                                         Consolidated    Revenue           Fund.

  • The Treasury           may,     within  the       Exchequer        Account,            establish           separate accounts for the investment of surplus funds, which accounts shall   be         part      of         the       Exchequer
  • The Treasury           shall     establish           an        account with     the            Reserve

25 Bank               or       an        authorised         financial           institution,        to         be          known  as         the       PaymasterGeneral’s       Account and       such          account shall     be         for        the       disbursement     of          moneys forming the       Consolidated     Revenue           Fund.

(4)        The      Treasury           may      establish           with     a          financial        institution         or         any       similar  body     outside Zimbabwe        or        authorise           the       establishment    therewith

30 of                    such   other    accounts           as         it          may      deem    necessary          or         desirable           for        the       purposes           of          controlling        or         administering    public   moneys.

  • No account shall be         opened with     a          financial           institution    or         other    such     body,    whether within  or         outside Zimbabwe,        for    the       deposit of         public   moneys otherwise          than     in         terms    of    this      Act,      unless   the       written 35 authority       of         the       Accountant-General    has       been     obtained
  • Where an account has       been     opened with     a          financial    institution         or         other    body     in         terms    of         this      section, the    officer  responsible       for        the       administration   of         that      account shall    not       incur    any       overdraft           on        that      account otherwise          than    in         accordance        with     the       written authority           of         the    Accountant-

40                                       General.”.

  • Amendment of section 24 of Cap. 22:19

Section      24        (“Special           warrants           for        issues   to         meet     unforeseen        expenditure”)    of         the       principal           Act       is     amended           by        the       repeal   of         subsection         (3)        and       the     substitution       of—

“(3)      An       issue     authorised         in         terms    of         subsection (1)        shall     be         included           in         45               additional         or supplementary   estimates          of         expenditure       laid       without delay    before   the National           Assembly         and,      if          the       National           Assembly approves           the       estimates,          the       money  must     be         charged upon    the Consolidated     Revenue           Fund    by        an        additional         or supplementary   Appropriation    Act.”.

  • Amendment of section 27 of Cap. 22:19

Section                                                 27(“Issue      of                                                         money                                                         to    carry                                                          on                                                 government    after                                                    dissolution                                                      of       5

Parliament”)      of         the       principal           Act       is          amended           by        the            deletion of         subsection         (1)        and       the

substitution       of—

“(1)  Subject                                                                                                               to subsection                                                                                                          (2),      if      at any                                                                                                          time Parliament                                                                                                          has      been dissolved

before   any       provision          or         sufficient          provision          has       been            made    in         terms    of         Chapter 17

of                                                            the                                                            Constitution                                                      or                                                                  this                                                           Act                                                                   for                                                           the                                                               carrying                                                        on                                                                   of                                                            the                                                            Government                                                      of                                                             Zimbabwe,                                                      10

the       President          may      authorise           the       issue     of         money  from     the            Consolidated     Revenue

Fund    for        the       purpose of         meeting expenditure       necessary          to            carry     on        the       services of

the       Government      until     three    months after     the       National           Assembly            first      meets   after     the


  • New section inserted in Cap. 22: 19 15

The principal                                                                                                           Act      is amended                                                                                                              in      Part     III                                                                                                       (National  Budget)                                                                                                              by      the insertion                                                                                                        before

section 28        of         the       following          section—

“27A Preparation of estimates of revenue and expenditure

  • Treasury shall,    for        each     financial           year,     timeously—
  • prepare a Budget Calendar for the formulation of the National 20

Budget for        the       subsequent        year;

  • prepare the Budget guidelines for preparation of recurrent

and capital budgets;

  • conduct Stakeholder       consultations     for        the       formulation       of

the National Budget.                                                         25

  • The Minister may, through the       appropriate       portfolio           committee

of Parliament, seek the views of Parliament in the preparation and

formulation of the annual budget, for which purpose the appropriate

portfolio committee shall conduct public hearings to elicit the opinions

of                                                             as                                                                many                                                stakeholders                                                                   in                                                            the                                                               national                                                      budget                                                                   as                                                     possible.”.                                                                   30

  • Amendment of section 28 of Cap. 22:19

Section        28        of         the       principal           Act       is amended—

  • in subsection         (2)        by        the       deletion of         “House of Assembly’        and       the

substitution       of         “National          Assembly”;

  • by the       insertion           after     subsection         (2)        of         the following          subsection—     35

“(2a)      The Minister             shall                                                                                   submit  separate          estimates                                                                                       of  revenue

and       expenditure       for        the       following          institutions—

  • each Commission      established        by        the      Constitution;
  • the office of         the       Auditor-General;
  • the National Prosecuting       Authority;         40
  • the Council of Chiefs; and
  • any other institution         established        by        an        Act      of         ”;
  • in subsection         (3)        by        the       deletion of “House of         Assembly’        and       the       substitution       of “National          Assembly”;
  • by the       repeal   of         subsections       (4)        and       (5) and       the       substitution       of         the       following—

“(4)      The      Commissions    and       institutions        whose      estimates          are        submitted in accordance with subsection (2) shall be given a reasonable opportunity           to         make      representations  to         a          parliamentary    committee         as      to         the       funds    to         be         allocated           to      them    in         each     financial           year.”.

  • New sections inserted in Cap. 22: 19

The           principal           Act       is          amended           by        the       insertion     after     section 28        of         the       following          sections—

10                           “28A Budget management

(1)      Treasury           shall—

  • notify State Entities and       commissions     of         approved           budgets         through warrants;
  • upload approved budgets on the Integrated Public Financial

15                                                                                Management   system.

(2)        Every   Accounting       Officer  shall     be         responsible          for        monitoring        his or her budgets through commitment control.

28B Cash management

  • Treasury shall     be         responsible       for        cash     management      and       shall    20 issue expenditure       ceilings to         State    Entities and
  • Every Accounting       Officer  shall     submit  cash     flow     forecasts           to    the

28C Additional or supplementary estimate

(1)      If      in            respect                                                                                            of      any financial          year                                                                                               it      is   found            that                                                                                             the  amount

25 appropriated  by        an        Appropriation    Act       is          insufficient       or         that            a          need     has       arisen   for        expenditure       for        a          purpose to            which   no        amount has       been     appropriated      by        that      Act,      a            supplementary   estimate,           showing the       amount required,           shall     be            laid       before   the       National           Assembly,                     and       the            votes    of         expenditure       shall     be         included           in         a            Supplementary  Appropriation    Bill       to         be         introduced        to         30 the       National           Assembly         to         provide for        the       appropriation     of            those    sums.”.

22 New section inserted in Cap 22: 19

The           principal           Act       is          amended           by        the       insertion     after     section 29        of         the       following          section—

“29A Virementing

35                                 (1)        Whenever         any       money  has       been     appropriated          under   a          vote      of         Parliament        for        a          particular          purpose, the       Treasury           may      authorise          the       application        of         an        expected           saving  on          that      vote      to         meet     an        excess   of         expenditure          on        any       existing subhead of         that      vote      or          expenditure       on        a          new      subhead of that vote.

40                     (2)                                                                                            The Treasury         shall                                                                                     delegate      any accounting      officer                                                                                            to authorise

virements     within  subheads,          subject to         any       restrictions        that      it        may      impose.”.

23 Amendment of section 31 of Cap. 22:19

Section      31        (“Duration        of         appropriation     and       warrants”)         of     the       principal           Act       is          repealed and       the       following          is     substituted—

“31 Duration of appropriation and warrants

Where provision is made in an Appropriation Act, warrant or

authority           issued   in         terms    of         this      Act       for        the       incurring            of         expenditure       on

any       service, such     provision          shall     lapse     and       cease    to         have            effect    at         the       close

of                                                     the                                                                      financial                                                year                                                                           to                                                   which                                                                          that                                       Appropriation                                                                          Act                                                  relates                                                                         and,                                                   save                                                                           as                                                       5

is          otherwise          provided           in         this      Act,      the       unexpended            balance of         any       money

withdrawn        from     the       Consolidated     Revenue           Fund    shall     be         re-deposited

in         the       Exchequer        Account:

Provided      that   where            any                                                                                       amount appropriated       by                                                                                             any provision

of                                                     an                                                                  Appropriation                                            Act                                                                           is                                                specified                                                                           in                                                    the                                                                     Estimates                                                of                                                                    Expenditure                                              to                                                                           10

which such appropriation relates as being required for a grant, then,

unless   the       Treasury           otherwise          directs, the       provisions         of         this            subsection

shall     not       apply    in         respect  of         that      amount or         in         respect  of            the       effect    of         that


  • New section inserted in Cap. 22: 19 15

Part      IV      of                                                                                                                 the principal                                                                                                           Act      is amended                                                                                                             by      the insertion                                                                                                        before  section                                                                                                              32      of     the

following          section—

“31A Financial reporting framework

  • The cash basis of accounting shall be used when recording

and                                              preparing                                                                      financial                                         statements                                                                          for                                                  voted                                                                        funds.                                                 The                                                                       accrual                                                basis                                                                           of                                                     20

accounting        shall     be         used     when    recording          and       preparing            financial           statements

for        funds,   statutory           funds,   statutory           bodies,  provincial         and            metropolitan

councils and local authorities.

  • The Accounting Standards          that      shall     be         ”.
  • Amendment of section 32 of Cap. 22:19 25

Section      32 (“Preparation                                                                                                      and reporting                                                                                                              of   annual                                                                                                     financial statements                                                                                                            by

Ministries”)      is          repealed and       the       following          is          substituted—

“32                                      Preparation        and      reporting          of  annual          financial                                   statements

  • Every director responsible       for        finance shall     prepare or         cause

to                                                     be                                                                      prepared                                                the                                                                        annual                                             financial                                                                     statements                                               of                                                                          the                                                Ministry                                                                     concerned                                                30

and       shall     submit  such     statements         to         the       accounting        officer  in            that      Ministry

and       to         the       Accountant-General       within  thirty    days     after     the       end            of         the       year


  • The financial statements         referred to         in         subsection         (1)        shall

be                                                prepared                                                                           in                                             accordance                                                                         with                                                   the                                                                      Financial                                         Reporting                                                                    Framework                                               as                                                                           35

provided           for        in         section 37.”.

  • Amendment of section 35 of Cap. 22:19

Section          35        of         the       principal     Act                                                         is  repealed and       the       following          is substituted—

“35 Consolidation of Annual Financial Statements

  • Every accounting        officer  of         a          Ministry           shall— 40
  • keep or cause to be kept proper records of account; and
  • submit financial           statements         within  thirty    days     after     the       end

of         the       financial           year      to—

  • the Auditor-General for audit;   and
  • the Accountant-General for            45
  • Unless the       Accountant-General       otherwise          directs, all appropriation     accounts           shall     be         closed   and       the financial           statements         are        prepared           and submitted          to         the       Treasury           within  one month  after     the       end       of         the       financial
  • Within three    months after     the       end       of         each financial           year      the       Accountant-General       shall prepare and       transmit to         the       Auditor-General,           in such     detail    as         the       Accountant-General,      after consultation      with     the       Auditor-General,           considers necessary,         financial           statements         relating to         the

Consolidated Revenue           Fund    and       the       financial           position of         the        State    on        the

10                                                                     last           day       of         that      financial           year.

(4)        Save     as         otherwise          provided           by        this          Act       or         any       other    enactment,        an        officer          administering    a          trust,    fund     or         account shall,          within  three    months after     the       end       of         each          financial           year,     prepare and       transmit to         the          Accountant-General       financial           accounts,          statements          or         returns  in         relation

15 to                    that    trust,    fund     or         account during  that      financial           year          in         such     form     as         the       Accountant-General       may          direct.

(5)        If          in         the       opinion of         the       responsible          Minister it          would   not       be         in         the       public          interest to         publish any       account, statement          or          return   which   is          required to         be         transmitted        to          the       Accountant-General       in         terms    of         subsection

20 (4),                 the     accounting        officer  shall,    on        the       instructions       of          the       Minister given    in         writing, endorse the       account,          statement          or         return   accordingly.”.

27 New section inserted in Cap. 22: 19

The           principal           Act       is          amended           by        the       insertion,     after     section 36        of         the       following          section—

25                          “36A                                                                          Submission      of financial        statements                                                                                     to National         Assembly

(1)        Every   accounting        officer  of         a          constitutional    entity   or         public   entity   shall     submit  to—

(a)           the       National           Assembly         the   annual  report   and       the       audited financial   statements         relating to         the       operations         of   the

30                                                                                                                                                                             constitutional                                                                                                                      entity      or                                                                                                                     public                                                                                                                     entity,      as                                                                                                                         the      case                                                                                                                        may      be,

within     thirty    days     of         the       completion        of   the       audit;

(b)          the  Minister,   the      appropriate          Minister,      the Accountant-

General,  the       National           Assembly         and       the   Auditor-General,           any       other    reports  that      may   be         required in         terms    of         this      Act.

35                                 (2)        Every   accounting        officer  of         a          Ministry          shall,    within  ninety   days     of         the       end       of         the          financial           year,     submit  to         the       respective          Parliamentary    Portfolio           Committee        the       unaudited          annual  financial           statements         of         his        or         her          respective         Ministry.

(3)      The Minister         shall,                                                                                       within   ninety           days                                                                                              of      the     end               of                                                                                              the financial

40 year,               submit to         the       National           Assembly         the       unaudited          consolidated      annual  financial           statements.

  • Every appropriate       Minister shall     within  thirty    days     of         the           tabling  of         the       Report  of         the       Auditor-General thereon           before   the       National

Assembly,       submit  to         the       respective         Parliamentary            Portfolio           Committee        45 the    audited annual  financial           statements            of         his        or         her       respective         Ministry.

  • The Minister shall     submit  to         the       National           Assembly   audited consolidated      annual  financial           statements         within  one           hundred and       eighty   days     of         the       end       of         the           financial           ”.
  • Amendment of section 37 of Cap. 22:19

Section37        (“Financial        statements         and       budgets to         comply with            generally          accepted           accounting        practice”)          is          repealed and            the       following          is          substituted—

“37 Financial statements to comply with Financial Reporting

Framework                                                                                  5

  • The financial statements         required to         be         prepared           in      terms

of         this      Act       shall     be         prepared           in         accordance        with            generally          accepted

accounting        practices           recognised        by        the       Accounting       Standard            Setting

Board   in         Zimbabwe        and       approved           by        the       Accountant-General.”.

  • Amendment of section 81 of Cap. 22:19 10

Section      81 (“External                                                                                                 auditors”)      of     the                                                                                                        principal      Act      is                                                                                                          repealed      and     the                                                                                                       following

is          substituted—

“81 External auditors

  • The Auditor-General shall audit    or         cause    to         be         audited the

financial                                        statements,                                                                      financial                                            systems                                                                          and                                               financial                                                                   management                                              of                                                                           all                                                     15

accounting        officers, receivers           of         revenue;           statutory           funds;            designated        or

specified           public   entities; constitutional    entities; provincial         and       metropolitan

councils; and local authorities.

  • The Auditor-General shall satisfy  himself or         herself  that—
  • all reasonable precautions have been taken to safeguard the 20

collection          of         public   money  and       that      the       provisions         of         this

Act       and       any       other    enactment         relating to         the       accounting        for

public   resources          and       of         any       direction           or         instruction            issued   in

terms of section 78 or departmental instruction referred to in

section                                       6(3)                                                                                 which                                      relate                                                                                 thereto                                      have                                                                                  been                                        duly                                                                               observed;                                       25

  • all payments of         public   money—
    • have been     made    in         accordance        with   proper   authority;


  • have been     properly charged;           and
  • are supported          by        sufficient          vouchers   or         proof    of         payment;          30

(c)    all  moneys  expended  and  charged  to  an appropriation


  • have been applied to the purposes for which the grants

made    by        Parliament        were     intended;          and

  • were expended          in         conformity        with     the   appropriate       35


(d) all reasonable precautions have been taken to safeguard and

control State    property and       all        issues   of         State    property were

made    in         accordance        with     proper   authority.

  • If at         any       time     it          appears to         the       Auditor-General that      any      40

irregularity        has       occurred           in—

  • the collection,         receipt, custody, control or         payment           of public

money; or

  • the receipt, custody, control, issue,    sale,     transfer or         delivery

of                                                                    any                                                         State                                                             property;                                                           45

he      or         she       shall     immediately      bring    the       matter  to          the       notice   of         the       Treasury,          the       appropriate          accounting        officer  or         receiver of         revenue, as         the          case      may      be,        and—

  • the Public   Service Commission,     where   in         his        or         heropinion

the          irregularity        constitutes        misconduct       on   the       part      of         any       member of         the   Public   Service; and

  • the Commander      of         the       branch  of         the       Defence Forces concerned,        where   in         his        or         her       opinion the       irregularity constitutes misconduct or a breach of discipline on the part






of         any       member of         the       Defence            Forces; and the Commissioner-General   of            Police,  where   in         his        or         her            opinion the       irregularity        constitutes            misconduct       or         breach  of            discipline          on        the       part      of            any       member of         the       Police            Force;   and

the Commissioner of Prisons, where in his or her opinion the irregularity   constitutes        misconduct       or            a          breach  of         discipline          on            the       part      of         any       member of            the       Prison   Service; and

(g)           the       Attorney-General,          where   in         his   or         her       opinion the       irregularity        constitutes   a          criminal offence.

20   (h)                                                                                                                the Zimbabwe                                                                                        Anti-Corruption Commission,                                                                                                   where      in     his                                                                                                                  or

her          opinion the       irregularity        constitutes        a   case      of         suspected          corruption.

(4) In the performance of his or her functions in terms of this section, the       Auditor-General          may      order    the       taking   of         measures          to          rectify

25 any                 defects in         the       management      and       safeguarding     of          public   funds    and       public   property and       public   officers          must     comply with     orders   given    to         them in terms of this subsection.

(5)      In     the        performance                                                                                        of      his      or               her                                                                                    functions      in   terms             of                                                                                             this

section,        an        external auditor shall     have     the       same    powers  as         an        internal

30                                                                 auditor        under   section 80(3).”.

30 Amendment of section 83 of Cap. 22:19

Section          83        of         the       principal     Act                                                         is   repealed and       the       following          is substituted—

“83                                   Annual            reports and      audited financial    statements

(1)      The Auditor-General or                                                                                             any independent    auditor                                                                                        shall    audit

35 the                  annual financial           statements         and       return   the       audited          statements         referred to         in         section 81(1)    within          sixty     days     of         receipt  thereof.

(2)      The   annual          report                                                                                           and  audited        financial                                                                               statements  shall—

(a) contain a report on the activities, outputs and outcomes of the        Ministry;

40   (b)                                                                                                             fairly  present                                                                                                             the      state      of                                                                                                            affairs      of     the                                                                                                       Ministry, reporting

unit,        constitutional    entity   or         public   entity   for   which   the       Ministry           is          responsible;

(c)                  include, where   appropriate—

(i) particulars relating to losses arising through criminal

45                                                                                                                                                                                       activities,      and                                                                                                                  criminal      and                                                                                                             disciplinary                                                                                                                     action                                                                                                                     taken;

  • instances of unauthorised     expenditure;
  • instances of irregular           expenditure;
  • instances of fruitless and       wasteful expenditure;
  • recoveries and       write-offs          of         public   resources;         (vi)       any       other    matters as         may      be         ”.

31 Amendment of section 84 of Cap. 22:19                                                      5

Section          84        of         the       principal     Act                                                         is   repealed and       the       following          is substituted—

“84 Audit committees

  • Every Ministry,          statutory           fund,    constitutional    entity,   public

entity  provincial  and  metropolitan  council,  and  local  authority shall

establish an audit committee.                                                                10

  • The responsibilities of an audit committee shall include the


  • to review internal controls, including the scope of the

internal audit    programme,      and       the       internal audit    findings,

and                                           to                                                                             recommend                            appropriate                                                                                 action                                         to                                                                                    be                                         taken                                                                                    by                                           the                                                                                    15

responsible authorities;

  • to ensure that      accounts           are        prepared           in         a          timely  and    accurate

manner and to ensure the prompt publication of the annual


  • to review with     the       Auditor-General or         other    external auditors,           20

as         may      be         appropriate,       the       scope    of         their     audit    plan,     the

system  of         internal audit    reports  and       assistance         given    by

officers or         staff     to         the       auditors and       any       findings and       action

to be taken in connection therewith.

  • An audit    committee—     25

(a)   shall consist of at least three persons, of whom, in the case

of         a          Ministry—

  • one person  shall     not       be         a          member of         the         Public   Service;


  • the majority shall     not       be         persons employed          in         that      30

Ministry,          except  with     the       approval           of         the       appropriate

Minister; and

  • the chairperson shall not be a member of the Public

Service employed          in         the       Ministry;

  • shall meet     at         least     twice    a          year;     and       35
  • may be         established        for        two      or         more    Ministries,        or    public   or

constitutional entities or provincial and metropolitan councils

and       local     authorities         if          the       Treasury           considers          it          to            be         more


  • The composition of the Audit Committee shall promote the 40

principle           of         gender  balance and       equity,  and       the       members           shall            be         appointed

on merit.

  • The Auditor-General,           and       external and       internal auditors,           shall

have the right to attend and participate in the deliberations of the audit

committee.                                                                                         45

  • Upon the       request of         any       auditors,           the       chairperson       of   an        audit    committee         shall     convene a          meeting to         consider any   matter  that      the       auditors believe should be brought to the attention of the responsible authorities.
  • The chairperson of the audit committee shall send or cause to be sent—
    • all notices of audit committee meetings; and
    • all minutes of         audit    committee         meetings;          to         the         Accountant-

General,  Auditor-General,           internal auditors and   external auditors where   appropriate.”.

10          32 Amendment of section 90 of Cap. 22:19

Section      90        of         the       principal           Act       is          amended           by     the       repeal   of         subsection         (5)        and       the       substitution       of—

“(5)      Where  in         relation to         money  notified in         terms    of subsection         (3)        no        claim    is          made    or         a          claim    is dismissed,         any       such     money  shall     become public   money  and

15 be    paid       into      the       Exchequer        Account,           and       no        person  shall have     any       right     of         action   against the       Treasury           or         the State    in         relation to         the       money.”.

33 New sections inserted in Cap. 22:19

The           principal           Act       is          amended           by        the       insertion     after     section 90        of         the       following          sections—

20                           “90A Retention moneys

Any      money  payable by        the       State    under   a          contract which   is          withheld           to         ensure  due          performance      of         that      contract may,     if          the          Treasury           so         authorises,        be charged to the appropriation account relating to that contract and the      money  so          charged shall     be         credited to         a          suspense          account and       may

25 thereafter         be       paid      out       in         accordance        with     the       contract or          as         directed by        the       Treasury.

90B Recovery of debts due to State

(1)        Through           the       Accountant       General or         an          accounting        officer, a          debt      due       to         the          State    may      be—

30                                          (a)           sued     for        and       recovered          by   action   in         any       court    of         competent   jurisdiction at the suit of the responsible Minister;

(b)           subject to         subsection         (2),       set        off   against any       amount due       by        the       State    to   the       person  by        whom   that      debt      is          due.

(2)      In     the              case                                                                                              of      a   set-off             in                                                                                          terms      of paragraph          (b)                                                                                               of subsection

35 (1)                  against a          salary   payable to         a          person  who      remains in          the       employment      of         the       State    or         a          pension, the       debt      may      be         recovered          in         full          or         in         monthly instalments       at         a          rate          fixed     by        the       Treasury.”.

34 New sections inserted in Cap. 22:19

The principal                                                                                                           Act      is amended                                                                                                             by      the insertion                                                                                                              of      a    new                                                                                                         section      94   which                                                                                                       reads—

40                             “94 Financial provisions under Inter-Governmental Framework

  • In accordance with section 301 of the Constitution, not less

than   five      per centum        of         the       national revenues          raised   in         any       financial           year      will be allocated to the local, provincial and metropolitan authorities.

  • The Consolidated     Revenue           Fund    is          hereby  appropriated      for

45                                                    that         purpose.”.

Public Finance ManageMent aMendMent


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