KANDETA AND CHIKWANDA

By PERPETUAL SICHIKWENKWE-
THE Treasury has released K654.6 million for developmental programmes, operations and debt servicing.
The Ministry of Finance has also established a high-tech VPN-Link to the Bank of Zambia (BoZ) to improve information flow related to the Real-Time-Gross-Settlement System (RTGS) and implementation of the Treasury Single Account (TSA).
Some ministries, provinces and other spending agencies (MPSAs) would benefit from the K654.6 million released.
Ministry of Finance public relations officer, Chileshe Kandeta said ministries of Lands, Mines and Energy Development, Education, Home Affairs, Zambia Police Service, Communication Transport and Works and Supply, Agriculture and Livestock, and the Ministry of Community Development Mother and Child Health were some of the beneficiaries.
Mr Kandeta said the National Road Fund Agency (NRFA) had received K100 million from the Euro Bond proceeds for road infrastructure programmes under the Road Development Agency.
He said the Ministry of Mines, Energy and Water Development received K2.4 million for maintenance of dams.
Mr Kandeta said the Zambia Revenue Authority received K17.8 million for operations, of which K2 million was for performance improvement at the Kasumbalesa border between Zambia and the Democratic Republic of Congo.
A total of K12.8 million has been allocated to the Ministry of Education for tuition fees for Government-sponsored students at the University of Zambia and the Copperbelt University.
“Consistent with sound credit worthiness, sustain investor confidence in the commitment of the Zambian Government to prudent financial governance, and to meet some repayment obligations towards external debt, the Treasury funded K12 million,” he said.
On financial management reforms, Mr Kandeta said the ministry had implemented the direct deposit of non-tax revenue aimed at reducing cash-human contact in the revenue collection process.
“In collaboration with Indo-Zambia Bank, dedicated counter services for implementation of the Direct Deposit of Government’s Non-Tax Revenue System are already operational at passport and citizenship offices in Eastern, Lusaka, Central, Southern and Copperbelt provinces,” he said.
Mr Kandeta said because of the initiative, the ministry had observed a steady reduction in delayed and under-banking which were the two biggest sources of stress in the handling of non-tax revenue collected from the public as levies, fees, fines and toll-fees.
He said in view of the positive progress, the Ministry of Finance was rolling out the programme in Western, Muchinga, Northern, Luapula and North Western provinces.
Mr Kandeta further said in collaboration with Investrust Bank, the system of Direct Deposit of Government’s Non-Tax Revenue has extended to the Ministry of Lands headquarters.
“In conjunction with Barclays Bank, the Treasury has introduced Point of Sale (PoS) terminals at Kenneth Kaunda International Airport, Harry Mwaanga Nkumbula International Airport, Simon Mwansa Kapwepwe international Airport, Nakonde border, and the Road Traffic and Safety Agency offices in Lusaka, and Ndola,” Mr Kandeta said.
He said the ministry was delighted with the positive results recorded so far, especially that non-tax revenue through the implemented payment systems hit Government accounts immediately.
Mr Kandeta said it was clear that as public confidence in the payment reforms grew, public officials would spend more time on their core functions instead of handling cash and getting exposed to the temptation of ‘fiscal sin’.
On the implementation of the treasury single account, Mr Kandeta said the ministry had also established a high-tech VPN-Link to BoZ to improve information flow related to the Real-Time-Gross-Settlement (RTGS) System.
The ministry and BoZ had also established a high-speed information gateway to provide a reliable and real-time information exchange interface between the Integrated Financial Management System (IFMIS) at the Ministry of Finance, and the Real Time Gross Settlement System hosted by BoZ.
To ensure that this initiative was successful, the Treasury is currently developing a code of practice for implementation of the Treasury Single Account System in Government.