Minister of Finance: Keen to face any financial corruption and referring  any deviation to judgment

Speed up GFMIS (Automation of Government Accounting) to tighten financial control

Considering the cancellation of article 14 from government accounting law to bridge the gap of disbursement rules breach

The Minister of Finance, Dr. Fayyad Abdel-Moniem emphasized on the government’s keenness to fight financial and administrative corruption, face any wrong or undisciplined  practices and refer any corruption or deviation files to public prosecution.

He said that this keenness is based onimplementation procedures and mechanisms, revealing that the Ministry of Finance holds consultations with international institutions to develop and automate governmental accounting, benefiting from global experiences in this area to impart more transparency and full control on governmental financial management in Egypt.

He referred  that the Ministry of Finance is targeting to automate all the State’s General Budget Programs to take advantage of the successful experience of automation  of collecting public revenues, taxes ,customs duties , financial and effective control on these transactions, noting that South Korea offered to assist Egypt in establishing rules and systems of cash flows automation across Entities of  the State’s Administrative Agency,  developing and automating the budgeting techniques and execution  on the level of budget units affiliated to the Ministry of Finance and across the State’s Administrative Agency .

As for The gaps in the current financial control system,the Minister disclosed that the government is consideringthe amendment of  the Governmental Accounting Law no.127 / 1981 to cancel the article No 14, which allows the competent authorities  to ignore the objections of  financial controller concerning  disbursement operations,especially remuneration , incentives and only disbursement according to the signature of the competent authority without the endorsement by financial controller .

The Minister disclosed that the government is considering the submission of a legislative amendment to oblige all thespecial accounts and funds to apply the rules of financial control according to the governmental accounting,thus not to release for any purpose, except after submitting it to the related financial controller in the entity,in which the special account or fund is affiliated, to adopt the disbursement.

Concerning the accusations of the financial controllers, The  Minister ensured that this is due to the adherence of  financial controllers to apply and implement all laws and legislation governing the execution of the state general budget even if they face some accusations and inconvenience.

The Minister said that strict control systems and rules applied to financial controller, it is legally not allowed to any financial controller to get  remunerations, allowances, or any financial and in kind benefits from the authorities they are mandated to control, he noted that an earlier decree has been issued before the revolution, cancelling any exceptions in this regard.

The Minister added that secondly, the financial controller’s work rulesprovided  that he should constantly moveacross public entities and not to stay more than 5 years in the same authority, beside theybelong to The Ministry of Finance’s financial accounts and directorates sector, the Ministry send financial inspectors in order to practice  financial inspection on public entities and ensure the observance of legal rules of  disbursement operations beside the control of  the Central Auditing Organization, as it is an independent authority,  does not  affiliate tothe Ministry of Finance .

The Minister also indicated that there are deterrent penalties applied when seizing any irregularities and deviations done by financial controller or  public entities, confirming that no one is above the law and accountability.