Finance Warns Ministries, Agencies

The Ministry of Finance has noted that some Ministries and Agencies may be committing the Government in Contractual obligations which are in excess of the appropriations authorized by the Legislature or without proper observation of the established procurement process, in contravention of the law.

In a release, the Minister for Finance reminded all Ministries and Agencies of their responsibilities and obligations as provided under the Public Financial Management Act of 2009 (PFM Act),  the annual Budget Law, and the Public Procurement and Concessions Act of 2005 (PPC Act) as amended in 2010.

Section 24 of the PFM Act, 2009, sub sections 1-5 specify the legal process by which all Ministries and Agencies may enter into a contractual commitment on behalf of the Government. Section 47 subsections 1-2 of the same Act makes provisions for sanctions for an infringement of any sections of the Act. The PFM Regulations 2010 have also been published to clarify these sections. Section 40 of the PPC Act requires all procuring entities to undertake procurement planning each fiscal year.

“I wish to also remind potential contractors/suppliers of Government that unless the provisions of the PFM Act and the PPC are met, no payments will be made from the consolidated fund as contractual obligations to government. Banks and financial institutions wishing to provide pre-financing to these contractors are also reminded of the legal requirements and its consequences,” the release quoted Finance Minister, Amara Konneh as saying.

The Public Financial Management Act of 2009Section 24 under Contracts and Procurement among other things, states that all purchases of goods and services from suppliers, including capital investments, shall comply with the provisions prescribed in the Public Procurement and Concessions Act of 2005 as amended and its enabling regulations; all contracts, including those established through the simplified Local Purchase Order mechanism, shall be considered commitments of the government; among others.

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