Govt exposes national purse to fraud risk

Nyashadzashe Ndoro

The Ministry of Finance has revealed that the Public Finance Management System, which facilitates the disbursement of funds to local authorities and service providers, is currently not fully operational.

The system is undergoing upgrades to improve its efficiency, but in the meantime, manual processes are being used to process payments. Hurungwe East legislator Chenjerayi Kangausaru, raised concerns about the timely and transparent disbursement of funds to local authorities and service providers in rural areas, particularly in Hurungwe.

The Deputy Minister of Finance, David Mnangagwa, acknowledged the challenges and assured that the necessary upgrades and tweaks are being made to streamline the payment system. However, Mbizo legislator Corban Madzivanyika, another member of parliament, expressed concerns about the risk of embezzlement of the national purse during this time.

"Are there no opportunities for embezzlement of the national purse during this time when we are using the manual system, especially when disbursing money to local authorities?" he asked.

The Minister reassured that while there are delays, payments are still being processed.

"There is processing in place which might not be desirable at the present moment, but this is being worked on from the technical point of view to make sure that our IT and ICT systems are working efficiently," Mnangagwa said.

The absence of the PFMS system has raised concerns about the vulnerability of the national purse to embezzlement and corruption. The use of manual processes to disburse funds increases the risk of fraud and abuse of public funds. There are fears that the country's financial resources may be exposed to unauthorized use. In an interview, Anold Nyanyiwa, an IT expert said manual processes increase the risk of fraud and abuse of public funds.

He added: "Without a functional PFMS, tracking and monitoring of payments become difficult, leading to reduced transparency and accountability. "Without a centralised system, tracking payments and ensuring that funds reach intended recipients becomes challenging."

Nyanyiwa said the lack of functional PFMS may lead to non-compliance with financial regulations and standards.

"The Minister's assurance that payments are still being processed does not alleviate the concerns, as the lack of a functional PFMS compromises the transparency and accountability of the payment system.

"The upgrade of the PFMS is long overdue, and the government must prioritise its completion to ensure the efficient and transparent management of public funds. Until then, the risk of embezzlement and corruption remains a concern," Nyanyiwa said.

Mnangagwa admitted that there is a "processing in place which might not be desirable at the present moment".

"The system is going through upgrades to make sure that it caters for the whole of Government. Historically and in the past few months, it has been working efficiently for the non-NDS and the rest has been manual. "While there are delays, this does not mean payments are not happening. There is processing in place which might not be desirable at the present moment but this is being worked on from the technical point of view to make sure that our IT and ICT systems are working efficiently," Mnangagwa added.