JOIN DRIVERN TAXI AS PARTNER DRIVER TODAY!
Lusaka, Tuesday 13th May, 2014. The Government has made significant progress in the establishment of the Treasury Single Account (TSA) System.The TSA System is an Excellency Model which is designedto improve the Zambian Government’s ability to effectively and efficiently manage public financial resourcesby refining current payment processes and eliminating redundant procedures, therebymaking more effective use of the recent improvements in banking infrastructure across the country.
Commenting on the matter, Secretary to the Treasury Fredson Yamba has affirmed that to ensure Straight-Through Processing (STP) of payments and release of funding from treasury accounts at the Bank of Zambia, Ministries Provinces & other Spending Agencies [MPSAs]willbe compelled to process financial transactions using the Integrated Financial Management Information System [IFMIS].
“This is an immutable position as it is in this way that the Treasury will be able to monitor and evaluate transactions made in respect of expenditure of public resources. Shortcomings will be dealt with resolutely,” he said.
“The people of Zambia are fatigued with incessant negative reports in the handling of public resources.Therefore, upon full implementation, the TSA will enable us to maintain a transaction trail, monitor, control, manage and adequately report on the Government’s cash position so as to ensure effective and efficient management of cash in-flows and out-flows, and optimize the use of public financial resources,” said the Secretary to the Treasury.
Mr. Yamba has confirmed that an electronic interface between GRZ/IFMIS and the Bank of Zambia has been set up and testing of the link has since commenced. He said the link is targeted at facilitating the electronic transfer of funds and the exchange of other payment information needed to ensure the efficient management of public revenues and other resources.The automation process will affect all Government expenditurerelated to:
1. the release of funding from treasury accounts at Bank of Zambia;
2. expenditure approvals between Ministries Provinces and other Spending Agencies on one hand and Treasury and Bank of Zambia on the other; and,
3. bank reconciliations.
Implementation of the TSA System is being coordinated by the Office of the Accountant General, a directorate under the Ministry of Finance.The Ministry of Finance, together with Eastern Province, will be the first to implement the TSA System under a pilot phase. By December 2015, the system will have been implemented in all MPSA’s.Its broad benefits are as follows:
1. Improved cash forecasting; timeliness; and accuracy in reporting cash balances;
2. Improved monitoring and control of public revenues and expenditures;
3. A significant reduction in short-term borrowing activities coupled with a reduction in the cost of financing Government operations; and
4. Efficient transmission of authorized payments from MPSA’s to the Bank of Zambia for settlement via the Real Time Grossing System (RTGS).
//SIGNED//
Chileshe Kandeta
Public Relations Officer
