Latest update January 10th, 2025 5:00 AM
May 03, 2018 News
The Ministry of Communities is streamlining the financial systems of municipalities across the country. It has warned that financial records must be kept in good order and turned over to the Auditor General.
Ronald Bulkan, the Minister of Communities, sounded the warning to treasurers, who are the accountants, paymasters and collectors and financial advisers of the councils.
“The Ministry will provide no shelter nor will we condone this or any act that is contrary to the law,” Bulkan stated.
He pointed out that annual reports are a key instrument of transparent and accountable governance. While this has been a section honoured in the breach in previous years as flagged by the 2016 Auditor General’s Report, Bulkan stated that it should never recur.
He noted Section 177 of Chapter 28:01, which governs municipal and district councils, is clear as to the requirement for the accounts of councils to be made up yearly and submitted to the Auditor General.
“Council’s accounts with all other records ought to be in good order. Section 178 of the same Act makes it abundantly clear who is to be held liable of an offence in the instances of noncompliance – the treasurer,” Bulkan stated.
The Minister pointed out that the system of local government is evolving and being facilitated by a conscious decision of the central government to respect existing constitutional and legislative provisions that allow for the autonomous operation of local organs.
He said that the Ministry recognises that a robust updated financial framework is needed and plans to engage all relevant stakeholders such as the Ministry of Finance, National Procurement and Tender Administration Board, the Auditor General’s office, the Public Procurement Commission and the Local Government Commission among others to develop financial regulations to guide the transition.
However, he stated that this does not mean that central government is abandoning the local organs.
“The Ministry has been and will continue to provide support geared at strengthening the capacities of both the political and administrative arm of councils to aid in the timely realization of the capital town vision of promoting business, driving economic development and giving leadership in our regions,” Bulkan pointed out.
He explained that the new local government agenda as advanced by central government envisages the establishment of “Capital towns” in each region.
According to the Minister, with this new developmental role envisaged for municipalities moving beyond the provision of traditional municipal services such as garbage disposal, the need for a robust financial management system is even greater.
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