BY SAMIE WAIKORI
Leader of the Official Opposition Group in Parliament, Matthew Wale has raised the seriousness of cash flow, leakages and unfulfilled finance policies the country continues to endure.
Speaking in parliament this week in response to the speech from the throne by His Excellency, Governor General, Sir David Tiva Kapu, on the priority policies of GNUT, Wale pointed out that most of the policies under the government’s 100 days plan, especially on Finance remained unfulfilled.
He revealed that at the heart of government’s public financial management, persistent cash flow problems and leakages continue to undermine stability and the credibility of government’s budget implementation.
This is despite clear commitments under the 100-Day Policy to strengthen public finance management, these issues worsened throughout 2024.
Wale said the measures currently employed, such as stricter monitoring of payroll and procurement, while useful, do not address the root causes, they simply delay or deny expenditure.
“Consequently, ministries have been starved of operational funds affecting the delivery of services, and critical projects have been delayed or abandoned.
“The inability to control leakages and stabilize cash flow fundamentally undermines any claim to economic transformation,” he said.
Wale also noted that although, it is typical government policy cannot be implemented if it is not in the budget.
“In our situation, even if policy has been included in the budget, there is no guarantee that it will be implemented.
“The tail the wags the dog is the persistent precarious cash flows problem that has rendered treasury a hub for the rationing of scarce cash resources.
“The credibility of government promises of economic transformation stand or fall on Treasury’s ability to ration cash.
“In other words, there is a disconnect – a government that cannot manage its own finances cannot credibly promise economic transformation,” he said.
Wale stressed there is an argument to be made for seeking greater efficiencies in the machinery of government, and in the delivery of services.
“However, it seems to me the two most critical leakages that must be addressed are corruption and excessive procurement contracts, and the two may be linked,” he mentioned.
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