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Auditor exposes govt expenditure problems
By
Gedion Munthali - 14-12-2002 |
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Auditor General Henry Kalongonda has blamed government’s annual overexpenditure on unrealistic budgets and general accounting problems.
Speaking in an interview on Thursday, Kalongonda said some ministries have not reconciled their accounts on time and wondered how accountability would be achieved under such circumstances.
“The crucial problem has been an accounting one. I can tell you that in some ministries reconciliations have not been carried out over a period ranging between one and two years,” said Kalongonda.
He also said because the economy is unstable prices of essential commodities change suddenly, resulting in ministries spending beyond budget allocations.
On the cash budget, Kalongonda said the Treasury gives extra money to some ministries on request, relaxing the system.
He dismissed suggestions that government’s decision to put some senior civil servants on contract to improve effectiveness and efficiency has failed to check overexpenditure.
“The system is a good thing. It is not only happening in Malawi but in several others countries. Since it is just in its infancy we can not see the impact. Lets just give it some time and we will see what it can do,” said Kalongonda.
But Congoma Executive Director Ted Nandolo said that the system of putting senior civil servants on contracts with hefty benefits has failed as government still shows signs of lack of efficiency.
“The recent revelation by the International Monetary Fund and admitted by Minister of Finance Friday Jumbe that there are still slippages in government spending speaks volumes about the failure of the contract system.
“What are they doing? If there are problems let them disclose. The taxpayers can not just continue sponsoring hefty contracts, when we can not notice any change on the ground in terms of how funds are being managed,” said Nandolo. “The system must be revoked. It is just a waste of time.”
Publicity Secretary of the Economics Association of Malawi (Ecama) Osten Chulu said the problem with the contracts is that they are not based on performance.
“What I am saying is that even if the performance of the ministries does not change, the principal secretaries and other senior staff on contract will remain in their positions,” said Chulu, who called on periodical reviews of contracts by an independent body.
“They [contracted staff] must be held accountable on the basis of the performance of their ministries,” said Chulu.
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