‘Public Finance Management Act should be reviewed’

THE Parliamentary Portfolio Committee on Local Government has called for a review of the Public Finance Management Act to criminalise abuse of devolution funds.

This was said by the chairperson of the portfolio committee, Miriam Chikukwa, in Parliament on Monday.

“The Local Government and Public Works ministry should put in place effective mechanisms for monitoring utilisation of devolution funds and follow up visits are needed to devolution by June 2022,” she said.

“The Public Finance Management Act must be reviewed to include a provision that criminalises abuse of devolution funds by June 2022.”

The Treasury releases devolution funds to local authorities to implement various projects such as the construction of clinics and schools.

But local authorities have complained that the funds are being disbursed late.

Chikukwa said Treasury should timeously disburse the funds and called for the funds to be increased.

“The 5% of the national revenues raised in any financial year must be reviewed upwards to 10% to enable development in the communities in the 2023 National Budget and devolution funds must be guaranteed,” she said.

“The Portfolio Committee on Local Government, Public Works, National Housing and Social Amenities must be involved in coming up with a revenue sharing formula to ensure equitable distribution of resources to all provincial councils by June 2022.”

Devolution is provided for under Chapter 12 of the Constitution, as read with section 268 of the charter providing for the establishment of provincial councillors