A new proposal aimed at tightening financial controls and enhancing accountability in public fund management seeks to have government ministries and agencies operate separate bank accounts for every development project.
The Public Finance Management (Amendment) Bill, 2025, sponsored by Rongo MP Paul Abuor, seeks to ensure that all funds allocated for specific projects in the national budget are deposited directly into project-based accounts. The move is intended to curb fund diversion – a challenge that often arises when the Treasury introduces supplementary budgets or implements budget cuts.
Abuor explained that the Controller of Budget (COB) will oversee disbursements to these accounts and ensure that quarterly compliance reports are submitted by the respective ministries, departments, and agencies.
“As this responsibility falls squarely within the existing functions of the COB, including authorising withdrawals from public funds and preparing quarterly budget implementation reports, this provision would not result in additional public expenditure,” Abuor said.
The proposed amendment, which has already been approved for publication by the Budget and Appropriations Committee (BAC), seeks to insert a new clause into Section 83 of the Public Finance Management Act, making it mandatory for all project funds to be managed through exclusive accounts.
Besides streamlining fund management, the Bill also proposes to make continuous training for accounting officers and authority-to-incur-expenditure holders a legal requirement. Under the proposal, the National Treasury, working with oversight bodies, will conduct regular capacity-building sessions to strengthen the handling of project accounts.
“In doing so, the Bill embeds this obligation in law and requires Parliament to expressly appropriate funds for its implementation through the national budget, in line with Article 114(3)(c) of the Constitution,” Abuor noted.
He explained that although the existing Public Finance Management Act allows the Treasury to offer financial training, it does not mandate that it is continuous or specialized. The bill aims to address that gap by mandating that officers responsible for managing public funds receive ongoing and specialized training so they can enhance accountability, efficiency, and transparency in implementing government projects.
Should the amendment be enacted, it would be a positive move towards combating financial mismanagement and ensuring that development funds find their way into intended projects and citizens directly.
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