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H.B. 14, 2015.]



Public Finance ManageMent aMendMent





Explanatory Memorandum

This Bill seeks to provide for the amendment of the Public Finance Management Act [Chapter 22:19] the individual clauses of the Bill are explained below:

Clause 1

This clause sets out the Bill’s short title.

Clause 2

This          clause   amends section 10        to         compel accounting        officers to    ensure  systems are in place for planning, budgeting, allocating, and reporting, review of the of the recurrent and capital budgets.

Clause 3

This clause repeals and replaces section 46 with the new section dealing with plans and projections.

Clauses 4

This clause amends section 47 to compel the submission of a budget of estimated revenue    not       less       than     three    months before   the       start     of         the    financial           year.

Clause 5

This          clause   amends section 49        by        inserting           provisions         for    preparation       of         financial           statements         for        each     quarter of    each     financial           year.

Clause 6

Inthis      clause   the       Principal           Act       is          amended           by        the    insertion           of         a          new      section that      undertakes the separation of roles of appropriate Ministries and Public Entities.

Clause 7

Inthis      clause   the       Principal           Act       is          amended           by        the    insertion           of         a          new      subsection         in         section 82    which   focuses on        recommendations           by        an        auditor being    implemented.



Public Finance ManageMent aMendMent





presented by the minister of finance and economic development


To provide for the amendment of the Public Finance Management Act

[Chapter 22:19] and to provide for matters connected with or incidental

5                       to the foregoing.


ENACTED by the Parliament and the President of Zimbabwe.



 1 Short title

10 This Act may be cited as the Public Finance Management Amendment Act, 2015.

 2 Amendment of section 10 Cap. 22:19

Section       10        (“Accounting    Officers”)      of                                                           the           Public   Finance Management     Act

[Chapter 22:19]     (hereinafter       called   the       principal           Act)     is            amended           by        the       insertion           of         15 the following subsection after subsection (3)—

“(4)      Every   accounting        officer, with     regard   to         public   entities and       statutory           funds    for        which   his        or         her Ministry           is          responsible,       shall—

(a)  ensure  that      each     such     public   entity   or      statutory           fund     has       systems in         place for planning, allocating, budgeting and reporting on the use of

  • public resources and that public resources are safeguarded against loss; and

(b)  review  the       recurrent           and       capital  budgets of      each     such     public   entity   or         statutory           fund      and       make    recommendations           to         the      appropriate       Minister

H.B. 14, 2015.]

Printed by the Government Printer, Harare

and recommend to the Minister whether the budgets should be varied,

                          approved or not to be approved;

  • have power to order an investigation to be conducted into the affairs of           each     such     public   entity   or         statutory           fund;
  • have power to call upon any accounting authority of each such entity or 5 fund to provide an explanation on an issue affecting the use of public


  • have power   to         give      directions          which   the           accounting        officer  thinks   necessary          for        the           efficient running of         each     such     entity   or           ”.

 3 Amendment of section 46 Cap. 22:19                                                         10

Section       46        of         the       principal           Act       is                                             repealed      and       substituted        by—

“46 Plans and projections by public entities

The accounting        authority           for    every public  entity                                               shall submit  to         the

accounting     officer  of         the       appropriate       Ministry           and         to         the       AccountantGeneral,       at         least     sixty     days         (or        such     greater  period   agreed  by        the       15 appropriate     Ministry           with     the       Accountant-General)         before   the       start     of         its        financial           year—

  • a projection of revenue, expenditure and borrowings for

that         financial           year      in         the  prescribed         format; and

  • an annual corporate plan in the prescribed format covering 20

the          affairs   of         that      public   entity,  including          its        subsidiaries,      for        the  following          three    financial           years,   and  such     plan      shall     include targets, outputs and  outcomes.”.

 4 Amendment of section 47 Cap. 22:19

Section     47        (“Annual          budgets of         specified           public   entities”)    of         the       principal           Act       is          25 amended       by—

  • the repeal of subsection (1) and the substitution of—

“(1)          The      accounting  authority              for                                                  a            public   entity   shall   submit                to

the appropriate Minister, not less than three months before the start of the     financial           year      of         the       Ministry           (or     other    period   agreed  to         between 30 the    Minister and       the     public   entity), a          budget  of         estimated          revenue and     expenditure       for        that      financial           year      and       an     annual  plan      relating to         that      public   entity,   prepared     in         line      with     the       Government’s   economic     development     plan      for        approval           by        the     appropriate       Minister.”;

  • the insertion of a proviso under subsection (2) as follows— 35

“Provided         that      the       supervising       Ministry      shall     check   before   approval whether the annual corporate plans and budgets of public entities are consistent with the projections and plans referred to in section 46      and       otherwise          comply      with     financial           policies set        by        Government.”.

 5 Amendment of section 49 Cap. 22:19                                                         40

Section    49        (“Annual          reports  and       financial           statements”)    of         the       principal           Act       is          amended           in    subsection         (1)        by—

  • the repeal of paragraph (b) and the substitution of—

“(b)           prepare financial statements              for                                              each          quarter of         each  financial              year

in accordance with generally                     accepted                                                                         accounting                               practice;”;                                                                               45

  • by the insertion           in         paragraph         (c)(ii)    after    “Accountant      General”           of                     “within
  • days after     the       end       of         each    quarter”;

 6 New section inserted in Cap. 22:19

The          principal           Act       is  amended                                                       by           the       insertion           after   section                                                        51           of         the       following

5          section—

“51A Separation of roles of appropriate Ministries and public entities

(1)        The      accounting        authority           and       every          member or         employee          of         a          public   entity,          and       the       accounting        officer  and       every          member of         the       Civil     Service employed          in          an        appropriate       Ministry           responsible       for          that

10                                       entity, shall     not       do        or         suffer   anything           that         compromises     the       supervisory       or         regulatory         role      of         the       Ministry           in         relation to         the       public   entity.

(2)        In         particular,         no        accounting          authority           or         member or         employee          of          a          public   entity,   and       no        accounting        officer          or         member of         the       Civil     Service employed          in         an        appropriate       Ministry           responsible          for        that      entity   shall

15                                       (except           to         the       extent   permitted          by        this         Act       or         the       enactment         constituting       the         public   entity)—

(a)           act        in         any       manner or         receive   any       monetary          or         other    benefit  that   compromises     the       supervisory       or   regulatory         role      of         the       appropriate   Ministry           or         infringes           on        the   autonomy         of         the

20                                                                               public entity;

(b)           being    the       accounting   officer                                                                    or a          member of         the    Civil                                                                  Service

employed in         an        appropriate       Ministry  responsible       for        the       entity   in  question—

(i)         partakes in      the                                                                   management of         the       entity   or dispossesses

25 it                                               of    any       of         its        management       functions,         whether or         not       at       the       invitation          of         the       entity;       or

(ii)        colludes with     the       public   entity       (whether           actively, or         by       incitement, or through acquiescence)  in condoning or concealing any       non-compliance with     this       Act       or         the

30                                                                                                                          enactment     constituting       the                                                                               public        entity;  or

(iii) fails to ensure, to the extent he or she is competent or capable of doing so, the strict separation and accounting for those public resources for which the appropriate

Ministry           is          responsible,       and       those    funds    and       resources

35 for                                             which          the       public   entity   is,         under       the       enactment         constituting       the       public   entity,   responsible;      or

(iv)  accepts or         receives any       monetary       or         other    benefit  inconsistent with the discharge of the appropriate

Ministry’s         supervisory       or         regulatory         role,     including

40                                                                                                                                             (but   not       limited  to)        any                                                                                    payment or         benefit  in         the                                                                                       way

of or in the guise of—

  1. management committee allowances; or
  2. trustee or trustee representative allowances; or
  3. travel allowances, fuel      coupons or         holiday

45                                                                                                allowances;

(c)           being    the       accounting        authority   or         a          member or                     employee   of         the       entity   in         question—

(i)    fails      to         make    timely  disclosures       to         the       appropriate       Ministry       of         all        facts,    matters, transactions       or











commitments   concerning        the          public   entity   that      are          likely    to         have     an          impact  on        the       public          resources          or         financial          interest of         the       State;   or

(ii)      colludes          with     the       appropriate          Ministry           (whether          actively, or         by        incitement,          or         through acquiescence)    in          condoning         or         concealing          any       non-compliance with          this      Act       or         the          enactment         constituting       the          public   entity;  or

(iii)    offers  to         any       person  referred to          in         paragraph         (b)          any       monetary          or          other    benefit  inconsistent          with     the       discharge          of          the       appropriate       Ministry’s          supervisory       or         regulatory          role      including          (but          not       limited  to)        those          payments          or         benefits          referred to         in         that          paragraph.

(3)               Despite anything           to         the       contrary contained          in         this      Act,      or         in         the enactment         constituting       the       public   entity   or in         any       other    law,      no        accounting officer  or         member of         the       Civil     Service employed          in         an        appropriate       Ministry responsible       for        approving         the remuneration     and       allowances        of         any member or         employee          of         a          public entity,   shall     approve such     remuneration     or allowances        without first      obtaining          written clearance          from     Treasury:

Provided           that      if          Treasury           does not       respond within  thirty    days     to         a written request for        clearance          from     the accounting        officer  or         other    member of         the Civil     Service concerned,        Treasury           shall     be deemed to         have     given    its clearance.

(4)               Any      person  who      wilfully or         with gross    negligence        contravenes       subsection         (2) or         (3)        shall     be         guilty   of         an offence and       liable    upon    conviction         to         a fine      not       exceeding         level     ten       or         to imprisonment    for        a          period   not       exceeding five      years    or         to         both     such     fine and       such     imprisonment.

(5)               Every   head     of         an        appropriate Ministry           shall,    in         consultation      with     the Treasury,          formulate          and       implement protocols,         guidelines         and       best      practice directives          to         ensure  the       separation         of roles     between the       Ministry           and       the public   entity   for        which   it          is          responsible in         accordance        with     this      section and good corporate governance principles.

(6)               No        secrecy or         confidentiality   provision in         any       contract or         law       shall     prevent an accounting        authority           or         a          member or employee          of         a          public   entity   from furnishing         to         the       appropriate       Ministry (through           the       accounting        officer  or otherwise)         any       information       concerning        a breach  or         suspected          breach  of         subsection (1),       (2)        or         (3),       and       no        public entity   shall     dismiss or         in         any       other way      penalise the       accounting        authority, member or                     employee          of         the public   entity   for        furnishing         such information.”.

Amendment of section 82 in Cap. 22:19

The      principal           Act       is          amended           in            section 82        by        the       insertion           after            subsection         (3)










of the following subsection—

“(3a)     Where  recommendations           have     been     made    by            an        auditor in         terms    of         this      Act,      the            public   entity   concerned         (except upon    good     cause            shown  to         the       Treasury           for        deferring            implementation of         any       recommendation or         not            implementing    any       recommendation) shall ensure that all recommendations are complied with within time   frames  agreed  with     the            Auditor-General.


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