Prudent fiscal management of public funds is one of the major reforms undertaken by the Government to ensure statutory bodies conform to best fiscal standards.
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According to the Economic and Development Policies of the 2017 National Budget, there are many statutory bodies being set up and operating without a set of investment parameters or guidelines provided by the Government.
This will now be the subject of a review by the Departments of Finance and Treasury, to review all proposals for the creations of statutory bodies to comply with the best monetary benchmarks.
Part of a Financial Framework Review (FFR), initiated by the Government, deals with public finance management issues regarding statutory bodies. This is because all funds received by statutory bodies, such as fee and charges, must be paid without deduction into the Government’s Consolidated Revenue Fund Account.
Part of the FFR is also the amendment to the Public Financial Management Act (PFMA) 1995, which will guide statutory bodies in their investment decisions and ensure they adhere to the set parameters stated in the amended act.
There are also strict penalties that will be imposed on those entities in breach of the PFMA.