Latest update January 17th, 2025 6:30 AM
State funds not to be used for holiday, end of year gift purchases …Financial Secretary warns practice is illegal
The use of Government funds to purchase end of year and holiday gifts is illegal and the Government is seeking to curtail the practice.
Newly appointed Financial Secretary (FS), Michael Joseph, issued a circular on Monday under the subject, ‘Expenditure of Public Funds for Holiday and End of Year Gifts’.
He cautioned Ministries and other budget agencies against such purchases.
The Ministry of Finance is keen to cut down on the use of state funds to purchase gifts.
“It has come to the attention of the Ministry of Finance that several Budget Agencies are proposing to present monetary vouchers and other gifts to staff for the holidays and end of year utilising public funds,” the FS stated.
He reminded Heads of Budget Agencies that this is not permitted under the Fiscal Management and Accountability Act (FMAA) as this has not been budgeted for nor approved.
The FS pointed to Section 16 of the FMAA which states that there shall be no expenditure of public moneys except in accordance with Article 217 of the Constitution.
The FS indicated that for this reason, holiday purchases have never received the approval of the Ministry of Finance, nor have they been presented for the consideration or appropriation by the National Assembly.
Further, the FS noted that any related payment by any Head of Budget Agency is prohibited.
Ministries would have been alerted to the Finance Ministry’s position regarding the use of state funds to purchase gifts.
In the Budget 2019 Circular dated June 28, 2018, Government signaled its concern with the quantity of public expenditure, including the usage of public funds for the purchasing of gifts for staff.
Paragraph 10.8 of the Budget circular stated that gifts and merchandise related to occasion-specific or ministry-specific paraphernalia and gifts must be reduced substantially.
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