Maseru, July 13 — The Public Accounts Committee (PAC) has advised the Ministry of Finance and Development Planning, through the Budget Controller, to adjust spending ceilings or make virement transfers instead of using the Contingency Fund whenever additional funding is required for urgent but non-emergency needs.
The advice was given by PAC Chairperson Mrs. Machabana Lemphane Letsie during the committee’s meeting with the Ministry on Monday. She was referring to the Auditor General’s report on the Consolidated Financial Statements for the year ended March 2023, which showed that four government ministries received Contingency Fund allocations for non-emergency purposes, in violation of Section 114 of the Constitution and Section 5(c) of the Public Financial Management and Accountability Act, 2011.
Mrs. Lemphane Letsie said the allocation of more than M10 million to the Judiciary for the installation of a recording system at Ts’ifa-li-Mali, the purchase of new vehicles and laptops for newly appointed High Court judges, vehicle maintenance, and the re-roofing of High Court offices and chambers did not qualify as emergency or unforeseen expenditure.
In response, the Ministry’s Budget Controller, Mrs. Maleshoane Lekomola-Danziger, acknowledged the need to strengthen the assessment and screening process for requests submitted by ministries.
Mrs. Lekomola-Danziger said the Ministry would develop guidelines to improve the management of Contingency Fund requests.
She further said the legal framework governing the Contingency Fund is mainly provided by the Constitution and that there are currently no specific regulations to guide its implementation.
She emphasised the need to develop and align Contingency Fund Management Regulations to provide greater clarity.
Mrs. Lekomola-Danziger also said the Ministry has adopted a strict approach to the use of the Contingency Fund during the current financial year, adding that the only allocation approved so far has been a fuel subsidy.
According to the Auditor General’s report, other ministries that received Contingency Fund allocations are the Ministry of Defence and National Security, the Ministry of Public Service, and the Ministry of Information, Communications, Science, Technology and Innovation, which received more than M3 million, M22 million and M62 million respectively.
The meeting between PAC and the Ministry of Finance and Development Planning is continuing and is intended to allow the Ministry to respond to issues raised in the Auditor General’s reports for the financial years ending March 31, 2023 and March 31, 2024.
Ends/LP
