State acts to speed up the utilisation of public funds

Government has put in place measures that will next year speed up the utilisation of public funds by government ministries , departments , and spending agencies.

Secretary to the Treasury Evans Chibiliti stated that government has allowed Controlling Officers to commence the tendering process for various project earmarked for next year.

Mr. Chibiliti however said the contracts would only be signed after the budget has been approved in parliament.

He said Controlling Officers have an idea of how much they expect to receive in next year‘s budget following conclusion of discussions with the ministry of finance.

Mr. Chibiliti told journalist in an interview that this process would help in speeding up the implementation cycle which he said is short.

As of this month, about K900 billion meant for various developmental programmes was still laying idle in the Central bank and Commercial Banks.

About K700 billion is held with the central bank while the remaining is in various commercial banks with accounts of Government ministries, departments and spending agencies

He said that the period for implementation which is supposed to be 12 is reduced to about three months because the budget has to be debated and approved and that the tender process also takes about three months.

The Secretary to the Treasury also attributed further delay to tender regulation that requires Controlling Officers to commence the tendering process when the money in available in the accounts.

He however stated that government expected the utilisation of the funds to improve next year following the measure it has pout in place.

Mr Chibiliti stated that government has been concerned this year about the slow pace in the utilisation of the approved funds.

He said the laying idle of funds in the central Bank and Commercial Bank was an indication that programmes have not been undertaken as planned in the budget.

And Mr. Chibiliti says progress has been made on the renegotiating of development agreement in the mining sector.

Mr. Chibiliti, who is chairing the Mining Negotiating Team, said the renegotiating mine agreements is meant to ensure equality in the share of mineral wealth of the country.

He said equality in the sector would enable Zambians to benefit from the mineral wealth of the country.

In another development, the empowerment fund aimed at empowering targeted citizens in selected sectors would be operational next year the Citizen Economic Empowerment (CEE) Chairman Jacob Sikazwe has disclosed.

Government had this year provided about K70 billion as seed money for the fund which shall also provide funding to other empowerment programmes that were being undertaken in various government ministries.

Addressing journalists during a press briefing, Mr.Sikazwe said the fund, which is a revolving fund and not meant for handouts, is a very important pillar of economic empowerment.

He said the commission would work with financial institutions so as to ensure that the resources reach a broad section of the community.

Mr. Sikwazwe however sated that the commission has made submission to the ministry of commerce, trade and industry for a budget allocation for next year which will be within the context of the Medium Term Expenditure Framework (MTEF).

He said the commission would next year commence the implementation of the various programmes targeted at empowering Zambians in sectors that include Mining, Agriculture, Tourism, Manufacturing, Financial services and Information and Communication Technology (ICT).

Other activities the commission would embark on include the effecting preferential procurement for Zambians s harmonisation of the Acts and the completion of the sector codes for the six sectors.

Mr. Sikazwe said various acts that include Zambia Development Agency (ZDA) and Zambia National Tender Board (ZNTB) need to be quickly be harmonised to align them with CEE Act.

‘Work has started on the harmonisation of the various acts and we are expecting the final report from the consultant in January 2008,’ he said.

He further said the commissions drafted the guidelines for the development of sector codes which will be sent to sector next month.

And Mr. Sikazwe says steps are being undertaken to amend legislation on procurement to ensure that preferential procurement is directed at citizens empowered companies.

In the next five years, the commission he said expected 50 percent of all government and private sector procurement to go to empowered companies and that 30 percent of these supplier companies be controlled by women youths and people living with disabilities.

Speaking at the same function Secretary to the treasury Evans Chibiliti said the commission would not give financial support on the mining sector but would put legislation that would ensure Zambians are given preference.

Mr. Chibiliti stated that the sector plays a key role in the development of the country.

And Commerce, Trade and Industry Permanent Secretary Davison Chilipamushi said the commission would need about $500 million to meet the demand of Zambians in need of funds.

Mr. Chilipamushi however stated that the fund is in the next three to four years expected to increase.

Meanwhile the commission‘s secretariat is to be operational new next following the appointment of the majority of the officers.

The CEE chairman disclosed that all remaining appointments that include the Director General would be concluded by mid next month.

Government has established the commission so as to empower targeted Zambians who have been disadvantaged.

The commission has since undertaken various sensitisation programmes in all the nine provinces to education Zambians about the empowerment programmes.