Public Finance Management Act

Link to law: http://www.parlzim.gov.zw/acts-list/public-finance-management-act-22-19

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ARRANGEMENT OF SECTIONS

PART I

PRELIMINARY

Section

1. Short title.

2. Interpretation.

3. Object of Act.

4. Application of Act.

5. Amendments to Act.

PART II

CONTROL AND MANAGEMENT OF PUBLIC RESOURCES

6. Treasury to manage and control public resources.

7. Duties and powers of Minister.

8. Secretary and Paymaster-General.

9. Accountant-General.

10. Accounting officers.

11. Powers of Treasury in relation to public resources.

12. Loss or destruction of or damage to State property.

13. Financial responsibilities of Ministers.

14. Ministerial directives having financial implications.

15. Reports to be laid before House of Assembly.

16. Money to be paid into Consolidated Revenue Fund.

17. Control of expenditures and issues from Consolidated Revenue Fund.

18. Establishment of other public funds.

19. Anticipated or unauthorised excess expenditure.

20. Investment of money in Consolidated Revenue Fund.

21. Money raised or received to exclude trust funds.

22. Establishment of banking accounts.

23. Accountant-General's warrants.

24. Special warrants for issues to meet unforeseen expenditure.

25. Advances by Treasury.

26. Issue of money to carry on government at beginning of each financial year.

27. Issue of money to carry on government after dissolution of Parliament.

PART III

NATIONAL BUDGET

28. Submission to Parliament of annual estimates of revenue and expenditure.

29. Minister may authorise advances.

30. Withholding of appropriated funds.

31. Duration of appropriation and warrants.144

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PART IV

FINANCIAL STATEMENTS

32. Preparation and reporting of annual financial statements by Ministries.

33. Preparation and reporting of quarterly financial statements.

34. Preparation and reporting of monthly financial statements.

35. Consolidation of annual financial statements.

36. Content of financial statements.

37. Financial statements and budgets to comply with generally accepted accounting

practice.

38. Publishing of reports on financial statements.

PART V

PUBLIC ENTITIES

39. Application of Part V.

40. Public entities that are not prescribed.

41. Accounting authorities.

42. Fiduciary duties of accounting authorities.

43. Assignment of powers and duties of accounting authorities.

44. General responsibilities of accounting authorities.

45. Responsibilities of employees of public entities.

46. Plans and projections by designated corporate bodies.

47. Annual budgets of specified public entities.

48. Information to be submitted by accounting authorities.

49. Annual reports and financial statements.

50. Corporate governance.

51. Reconstruction of designated corporate bodies in certain circumstances.

PART VI

LOANS, GUARANTEES AND OTHER COMMITMENTS

52. Borrowing powers.

53. Purposes for which the Minister may borrow money.

54. Manner of raising State loans.

55. Certain State loans exempt from tax.

56. Proceeds of State loans.

57. Security for State loans and expenses in connection therewith.

58. Repayment of State loans and payment of expenses in connection therewith.

59. Signing of loan agreements.

60. Repayment, conversion and consolidation of loans.

61. Power to give guarantees.

62. Security for guarantees.

63. Payments in connection with guarantees.

64. Loans to designated corporate bodies.

65. Restrictions on borrowing, guarantees and other commitments.

66. Consequences of unauthorised transactions and how to exclude them.

67. Minister to be exempt from certain obligations.

Section145

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

68. Registrar to make entries necessary to give effect to court orders.

69. Forgery of securities.

70. Powers of Minister.

71. Disclosure of information concerning loans and guarantees.

72. Annual, monthly and quarterly reports on loans and guarantees.

73. Interest and repayment of loans to be direct charges.

74. Establishment of sinking funds.

75. Trustees for sinking funds.

76. Payment into sinking funds.

77. Application of moneys in sinking funds.

PART VII

GENERAL TREASURY MATTERS

78. Treasury instructions or directions.

79. Determination of interest rates for debts owing to State.

PART VIII

AUDIT

80. Internal auditors.

81. External auditors.

82. AuditorÕs report on public entities.

83. Annual reports and audited financial statements.

84. Audit Committees.

PART IX

FINANCIAL MISCONDUCT

85. Financial misconduct by accounting officers, etc.

86. Financial misconduct by accounting authorities and employees of public entities.

87. Disciplinary proceedings.

88. Regulations on financial misconduct proceedings.

PART X

GENERAL

89. Abandonment of claims and write-off of public resources.

90. Unclaimed money.

91. Offences and penalties.

92. Powers of Minister to make regulations.

93. Repeals and savings.

SCHEDULE: Application of Reconstruction of State-Indebted Insolvent

Companies Act [Chapter 24:27] to Designated Corporate Bodies.

Section146

NO. 11/2009 PUBLIC FINANCE MANAGEMENT Cap. 22:19147

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

ACT

AN ACT To provide for the control and management of public resources

and the protection and recovery thereof; to provide for the appointment,

powers and duties of the Accountant-General and of his or her staff; to

provide for the national budget; to provide for the preparation of financial

statements; to provide for the regulation and control of public entities;

to provide for the raising, administration and repayment of loans by the

State and for the giving of guarantees in respect of certain loans; to

provide for general treasury matters; to provide for the examination

and audit of public accounts; to provide for matters pertaining to

financial misconduct of public officials; to repeal the Audit and

Exchequer Act [Chapter 22:03] and the State Loans and Guarantees

Act [Chapter 22:13]; and to provide for matters connected with or

incidental to the foregoing.

ENACTED by the President and Parliament of Zimbabwe.

PART I

PRELIMINARY

1 Short title

This Act may be cited as the Public Finance Management Act [Chapter 22:19].

2 Interpretation

In this Act-

"Accountant-General" means the person appointed as such in terms of section 9;

Printed by the Government Printer, Harare

ZIMBABWE148

NO. 11/2009 PUBLIC FINANCE MANAGEMENT Cap. 22:19

"accounting authority" means the person or body referred to in section 41(2);

"accounting officer" means a person who is prescribed to be an accounting officer

in terms of section 10;

"agent", for the purposes of Part VI, means an agent appointed in terms of section

70 (b);

"appropriate Minister", in relation to-

(a) a public entity, means the Minister responsible for administering the

Act by or in terms of which the public entity was established;

(b) a company, partnership or joint venture referred to in paragraph (b) or

(d) of the definition of "public entity", means-

(i) the Minister who, according to the memorandum and articles of

association of the company, the partnership agreement or the

foundational document of the joint venture, as the case may be,

is the Minister who holds the shares or interests on behalf of the

State; or

(ii) in the absence of any indication referred to in subparagraph (i),

the Ministry responsible for the sector of the economy in which

the company, partnership or joint venture carries on its main

activities;

"Appropriation Bill" or "Appropriation Act" means a Bill referred to in section

28(3), or Act resulting from an Appropriation Bill or Supplementary

Appropriation Bill;

"appropriate", in relation to public moneys, means appropriate through an

Appropriation Bill or Act;

"audit committee" means a committee established in terms of section 84;

"bond" means a document issued in pursuance of Part VI acknowledging a debt

and binding the State to pay a specified sum at a stated time or on special

conditions, and includes a debenture or other form of certificate of

indebtedness;

"budgeted", in relation to expenditure, means itemised in the estimates of

expenditure and voted for in an Appropriation Act;

"cancelled", in relation to bonds or stock, means cancelled in terms of section

77(3);

"capital budget", in relation to a public entity, means a programme of capital

expenditure which that public entity proposes to incur or to which it proposes

to commit itself during its financial year, whether or not such capital

expenditure is in respect of projects which will be completed during that

financial year, together with proposals for the financing thereof;

"capital expenditure" means expenditure on any project involving the acquisition

of capital assets such as land, buildings, plant, machinery, fixtures and fittings,

whether such acquisition is additional to, an improvement of or in replacement

of capital assets already held and includes, in relation to a public entity, such

other expenditure as the appropriate Minister and the Minister may designate

prior to the approval or alteration of a capital budget as being capital

expenditure;

"Comptroller and Auditor-General," means the person appointed as such in terms

of section 105 of the Constitution;

"consolidate," in relation to annual financial statements, means to combine the

annual financial statements of every Ministry, reporting unit, public entity

(other than a local authority) and constitutional entity;

"Consolidated Revenue Fund" means the Consolidated Revenue Fund referred to

in section 101 of the Constitution;149

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

"constitutional entity" means-

(a) the Judiciary; or

(b) Parliament; or

(c) the office of the Public Protector; or

(d) the Public Service Commission; or

(e) the Defence Forces Commission; or

(f) the Police Service Commission; or

(g) the Prison Service Commission; or

(h) the Zimbabwe Electoral Commission;

or any other body or commission appointed in terms of the Constitution;

"designated corporate body" means any corporate body or company referred to in

paragraph (a) or (b) of the definition of "public entity" which is designated

or deemed to be designated in terms of section 39;

"director of finance" means a person responsible for the financial affairs of a

Ministry who is directly accountable to the accounting officer of that Ministry;

"discount" means any reduction allowed on an amount of revenue due to the

Consolidated Revenue Fund which is authorised by the Treasury;

"estimates of expenditure" means an official publication of the amounts itemised

by Ministry or other heading that are sought by the Minister to be appropriated;

"financial institution" means-

(a) the Reserve Bank; or

(b) a building society registered under the Building Societies Act [Chapter

24:02]; or

(c) a banking institution registered under the Banking Act [Chapter 24:20]; or

(d) the People's Own Savings Bank established by the People's Own

Savings Bank of Zimbabwe Act [Chapter 24:22];

"financial statements" means-

(a) a statement of financial position; and

(b) a statement of comprehensive income; and

(c) a statement of cash-flow; and

(d) audited or unaudited monthly, quarterly or annual financial accounts;

and

(e) any other statements that may be prescribed;

"financial year", in relation to-

(a) the State or the finances of Zimbabwe, means the period of twelve

months ending on the 31st December in any year;

(b) a public entity or statutory fund, means the period specified under the

Act or memorandum and articles of association or foundational

document, as the case may be, by or in terms of which that public

entity or statutory fund is established;

(c) a fund established by or in terms of this Act, means the period of twelve

months ending on the 31st December in any year or such other period

as may be fixed by the Treasury;

"fruitless and wasteful expenditure" means expenditure which was made in vain

and would have been avoided had reasonable care been taken;

"generally accepted accounting practice" means accounting practices and

procedures that are consistent with this Act and are recognised by the

accounting profession as appropriate for reporting financial information150

NO. 11/2009 PUBLIC FINANCE MANAGEMENT Cap. 22:19

relating to a Ministry, reporting unit, constitutional entity, statutory fund or

public entity;

"local authority" means-

(a) a municipal council, town council, local board or rural district council; or

(b) any other board, council or body which is declared by the Minister, by

notice in the Gazette, to be a local authority for the purposes of this

Act;

"Minister" means the Minister of Finance or any other Minister to whom the

President may, from time to time, assign the administration of this Act;

"officer" or "public officer" means any person-

(a) in the employment of the State or a designated corporate body; or

(b) whose salary is paid from a fund required to be audited by the

Comptroller and Auditor-General other than the Consolidated Revenue

Fund or the funds of a designated corporate body;

"outputs" means goods produced or services provided;

"prescribed" means prescribed by Treasury instructions in terms of section 78, or

by regulations in terms of section 88 or 92, as may be appropriate;

"public entity" means-

(a) any corporate body established by or in terms of any Act for special

purposes;

(b) any company in which the State has a controlling interest, whether by

virtue of holding or controlling shares therein or by virtue of a right of

appointment of members to the controlling body thereof or otherwise,

and includes any company which is a subsidiary, as determined in

accordance with section 143 of the Companies Act [Chapter 24:03],

of such a body;

(c) a local authority;

(d) any partnership or joint venture between the State and any person and

which is prescribed by the Minister for the purposes of the application

of this Act to be a partnership or joint venture;

and unless otherwise specified, refers to a public entity prescribed for the

purposes of Part V;

"public money" means-

(a) revenues; and

(b) all other money received and held, whether temporarily or otherwise,

by an officer in his or her official capacity;

"public resources" means public money and State property;

"quarter" means a period of three months ending on the 31st March, 30th June,

30th September or 31st December in any financial year;

"receiver of revenue" means any person who is prescribed to be a receiver of

revenue;

"reporting unit" means a division, department, agency or other unit of a Ministry

that is independently required to report or account through the accounting

officer of the Ministry concerned to the Secretary or the Comptroller and

Auditor-General in terms of this Act:

Provided that if a constitutional entity is required to report or account

to the accounting officer of any Ministry, that constitutional entity shall be

deemed to be a reporting unit of that Ministry;151

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

"Reserve Bank" means the Reserve Bank of Zimbabwe established by the Reserve

Bank of Zimbabwe Act [Chapter 22:10];

"revenues" means all taxes, fees and other income of the State from whatever

source arising (not being moneys which are required by law to be paid into a

separate fund), including the proceeds of all loans raised by the State which,

in terms of section 101 of the Constitution, form part of the Consolidated

Revenue Fund;

"registrar" means a person appointed in terms of section 70(b) for the registration

of bonds and stock;

"Secretary" means the Secretary responsible for finance and Paymaster-General;

"sinking fund" means a sinking fund established in terms of section 74;

"specified public entity" means a local authority or joint venture referred to in

paragraph (c) or (d) of the definition of "public entity" which is specified for

the purposes of Part V;

"State loan" means a sum of money borrowed in terms of Part VI;

"State property" means property which is owned by the State or property for the

custody and care of which the State is responsible;

"statutory fund" means any fund established by or under any enactment not

including-

(a) a fund established under section 18; or

(b) a fund established by or for the purposes of a public entity which does

not contain public money;

"stock" means stock issued in pursuance of Part VI;

"Treasury" means the Minister or any officer in the Treasury authorised by the

Minister in writing to act on behalf of the Treasury;

"Treasury bill" means a Treasury bill issued in pursuance of Part VI;

"trustees", in relation to a sinking fund, means trustees appointed in terms of section

75.

3 Object of Act

The object of this Act is to secure transparency, accountability and sound management

of the revenues, expenditure, assets and liabilities of any entity specified in section 4(1).

4 Application of Act

(1) This Act, to the extent hereinafter indicated, shall apply to-

(a) Ministries; and

(b) designated corporate bodies and public entities; and

(c) constitutional entities; and

(d) statutory funds.

(2) To the extent that a provision of this Act applies to Parliament, any controlling

and supervisory functions of Treasury in terms of that provision shall be performed by the

Speaker of the House of Assembly.

(3) In the event of any inconsistency between this Act and any other enactment,

this Act shall prevail.

5 Amendments to Act

Proposed legislation directly or indirectly amending this Act, or providing for the152

NO. 11/2009 PUBLIC FINANCE MANAGEMENT Cap. 22:19

enactment of subordinate legislation that may conflict with this Act, may be introduced in

Parliament-

(a) by the Minister only; or

(b) only after the Minister has been consulted on the contents of the proposed

legislation.

PART II

CONTROL AND MANAGEMENT OF PUBLIC RESOURCES

6 Treasury to manage and control public resources

(1) The Treasury shall, subject to this Act and any other enactment-

(a) manage the Consolidated Revenue Fund;

(b) determine the manner in which public resources shall be accounted for; and

(c) exercise a general direction and control over public resources.

(2) The Treasury may by notice to officers concerned issue instructions or directions

in terms of section 78 in relation to matters involving-

(a) the collection, receipt, custody, control, issue or expenditure of public money;

(b) the acquisition, receipt, custody, control, issue, sale, delivery, transfer or

disposal of any State property;

(c) expenditure on any service involving a charge on the Consolidated Revenue

Fund;

(d) the operation of any statutory fund;

(e) the acceptance, on behalf of the State, of any gift, donation, bequest or other

grant of moneys or other property which is made subject to a condition or is

likely to involve a charge on the Consolidated Revenue Fund;

and the accounting therefor.

(3) Instructions or directions issued in terms of subsection (2) may require an

accounting officer or receiver of revenue to issue written departmental instructions to the

officers in his or her Ministry or department relating to any matter referred to in subsection

(2).

(4) Section 21 of the Interpretation Act [Chapter 1:01] shall apply, with the

necessary changes, in relation to the power conferred on the Treasury by subsection (2) to

issue instructions or directions.

7 Duties and powers of Minister

(1) It shall be the duty of the Minister-

(a) to develop and implement a macroeconomic and fiscal policy for Zimbabwe

and he or she shall, for that purpose-

(i) supervise and monitor the finances of Zimbabwe; and

(ii) coordinate international and inter-governmental financial and fiscal

relations;

(b) to advise the Government on the allocation of public resources as between

Ministries, reporting units, public entities, constitutional entities and any

programmes of Government independent of the foregoing.

(2) For the purposes of the full discharge of the duties set out in subsection (1),

the Minister shall ensure that-153

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(a) full and transparent accounts are from time to time and not less than annually

made to Parliament indicating the current and projected state of the economy,

the public resources of Zimbabwe and the fiscal policy of the Government;

(b) systems are established throughout Government for planning, allocating and

budgeting for the use of public resources and approving all requests for the

issue of public moneys prior to their inclusion in any estimates of expenditure

for submission to Parliament in accordance with this Act; and

(c) the control of the House of Assembly over such public resources is maintained

and that transparent systems are established and maintained which-

(i) provide a full account to the House of Assembly for the use of public

resources;

(ii) ensure the exercise of regularity and propriety in the handling and

expenditure of public resources.

(3) For the purpose of effectively supervising the public resources of Zimbabwe,

the Minister shall, subject to this Act and any other enactment, be responsible for the

management of the Consolidated Revenue Fund and the supervision, control and direction

of all matters relating to the public resources of Zimbabwe.

8 Secretary and Paymaster-General

(1) The Secretary shall be responsible to the Minister for ensuring the effective

implementation of this Act.

(2) For the purposes of subsection (1), the Secretary may be consulted by

accounting officers on any matter concerning the application of this Act, and he or she

shall promptly appraise the Minister concerning any defect in this Act which might result

in a diminution of control over public resources, and he or she may, subject to this Act,

give any directions and instructions not inconsistent with this Act which he or she may

consider necessary for the safety, advantage, economy and efficient use of those public

resources.

(3) The Secretary shall ensure that-

(a) there is established and operated an effective system for the collection of

information to ensure timely and effective preparation of the annual estimates

of expenditure for consideration and approval by the Minister and submission

to Parliament; and

(b) such estimates-

(i) are prepared in conjunction with any general or specific directions of

the Minister; and

(ii) reflect, as can best be ascertained at the time, good value for money

and the effective use of public resources.

(4) The Secretary may, for the purpose of subsection (3)-

(a) in writing, from time to time require an accounting officer or any entity

referred to in section 4(1)(b), (c) or (d) to supply such information as he or

she considers necessary for the purposes of section 7, and may specify the

date by which and the manner in which the information required is to be

supplied:

Provided that the Secretary shall, in specifying the date by which

any information is to be supplied, allow a reasonable time for it to be supplied

having regard to the nature of the information being required;154

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(b) in relation to every Ministry and the entities referred to in paragraph (a),

inspect all offices of the Ministry and entities in question and be given access

to them at all reasonable times of the day, and be given all available

information he or she may require with regard to public resources and any

records relating to them.

(5) The Secretary shall also be the Paymaster-General who shall, in that capacity

and subject to the directions of the Treasury, control the issue of public money to Ministries

and departments of the Government, and perform such other functions as the Minister may

prescribe.

9 Accountant-General

(1) There shall be an Accountant-General answerable to the Secretary, whose office

shall form part of the Public Service, and who shall be appointed by the President on the

recommendation of the Public Service Commission for a term of five years and on such

other terms and such conditions as shall be specified in the appointment.

(2) The Accountant-General shall be-

(a) a senior professional accountant or auditor; and

(b) registered as a Public Accountant or Auditor in terms of the Public Accountants

and Auditors Act [Chapter 27:12] for a period of not less than five years.

(3) The Accountant-General shall be responsible to the Secretary for the

compilation and management of the public accounts and the custody and safety of public

resources, and for that purpose the Accountant-General may, in the manner prescribed and

with the prior consent of the Secretary, give such instructions of a general or specific character

to accounting officers as may be necessary for the effectual implementation of this Act.

(4) Without prejudice to the generality of subsection (3), the Accountant-General

shall-

(a) specify for every Ministry, reporting unit or statutory fund, the basis of the

accounting system to be adopted and the classification system to be used,

and ensure that a proper system of accounts is established in each of them,

and that all money received and paid by the Government is brought promptly

and properly to account; and

(b) refuse payment on any voucher in support of a charge on the Consolidated

Revenue Fund which is defective in any way or which contravenes this Act

or any other enactment or instructions properly made or given in pursuance

of the Constitution, this Act or any other enactment for the management of

public money, or that is in any other way unacceptable:

Provided that the Accountant-General may admit or allow any

payment against a defective, lost or destroyed voucher if satisfied with the

explanation given to him or her by an officer; and

(c) report in writing any apparent defect in the control of revenue, expenditure,

cash, stores and other public resources in the care of any Ministry, reporting

unit or statutory fund and any breach or non-observance of regulations,

directions or instructions pertinent to such public resources, which may come

or be brought to his or her attention; and

(d) ensure, in so far as is practicable, that adequate provisions exist for the safe

custody of public moneys, securities, negotiable instruments and financial

statements; and

(e) take precautions by the maintenance of efficient checks, including inspections

against the occurrence of fraud, embezzlement and negligence, in connection

with public resources.155

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

10 Accounting officers

(1) The Minister on the advice of the Secretary shall prescribe an accounting officer

in respect of each expenditure vote, who shall control and be accountable for the expenditure

of money applied to that vote by an Appropriation Act and for all revenues and other public

money received, held or disposed of, by or on account of any Ministry, reporting unit,

public entity or constitutional entity for which the vote provides.

(2) An accounting officer may define in writing the extent to which the powers

and duties conferred and imposed on him or her may be exercised or performed on his or

her behalf by any officer under his or her control, and may give such directions as may be

necessary to ensure the proper exercise or performance of those powers and duties:

Provided that such delegation shall not derogate from the personal accountability

of the accounting officer.

(3) Every accounting officer shall comply with this Act and all instructions that

may from time to time be given by the Accountant-General in respect of the custody and

handling of, and the accounting for-

(a) public resources; and

(b) public stores; and

(c) investments, securities or negotiable instruments, whether the property of

the State or on deposit with or entrusted to the State or to any officer or other

person acting in his or her official capacity.

11 Powers of Treasury in relation to public resources

(1) Notwithstanding anything to the contrary contained in any other enactment,

the Treasury may-

(a) write off any losses or deficiencies of public money or the value of any lost,

deficient, condemned, unserviceable or obsolete State property; and

(b) write off any public resources payable to or receivable by the State or to or

by an officer for the benefit of a fund established in terms of section 18

which in the opinion of the Treasury is irrecoverable; and

(c) write off any public resources payable to or receivable by the State or to or

by an officer for the benefit of a fund established in terms of section 18 if the

difficulties, disadvantages or cost of collection thereof in the opinion of the

Treasury outweighs the value thereof; and

(d) waive or remit any claim by the State against any person or another

government or agency of another government; and

(e) on such terms and conditions as the Treasury may determine, invest or

authorise the investment of any public money held in an account or fund; and

(f) in compliance with section 16(3), make a refund of any revenues or public

resources erroneously brought to account as revenues.

(2) Where any public resources have been written off in terms of subsection (1)(b)

or (c) during any financial year, the Minister shall lay before the House of Assembly, within

thirty days before or not later than thirty days after the end of that financial year, a statement

of the public resources so written off.

(3) Any investment made in terms of subsection (1)(e) shall, when it is realised,

be repaid to the fund or account from which the money was withdrawn for the purpose of

making such investment.

(4) Any refund made in terms of subsection (1)(f) shall be paid out of the

Consolidated Revenue Fund which is hereby appropriated to the purpose.156

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12 Loss or destruction of or damage to State property

(1) If it comes to the notice of an accounting officer that there is any deficiency in,

or destruction of or damage to, State property, he or she shall cause an investigation to be

held into the circumstances of such deficiency, destruction or damage, as the case may be.

(2) If after an investigation in terms of subsection (1) the accounting officer

considers that-

(a) any person is responsible for the deficiency, destruction or damage, being a

person who is or was in the employment of the State at the time of such

deficiency, destruction or damage, as the case may be; and

(b) a satisfactory explanation in respect of the matter has not been furnished;

he or she shall report the matter to the Secretary with a recommendation as to the action

that he or she considers should be taken to recover the cost of the replacement of the

property concerned, if it has been lost or destroyed, or the cost of the repairs thereto, if it

has been damaged, as the case may be, or any portion of such cost.

(3) On receipt of a report in terms of subsection (2) and after considering the

recommendation of the accounting officer and consulting such other bodies or persons as

he or she considers should be consulted, the Secretary may make an order against the

person referred to in subsection (2) requiring him or her to pay to the State an amount equal

to the cost of the replacement of the property concerned, if it has been lost or destroyed, or

the cost of repairs thereto, if it has been damaged, as the case may be, or such portion of

that cost as the Secretary considers to be equitable in the circumstances:

Provided that the Secretary may, before making an order in terms of this subsection,

remit the matter to the accounting officer for further investigation or consideration.

(4) The Secretary shall withdraw an order made in terms of subsection (3) if it

appears to him or her that the order should not have been made.

(5) The Secretary may, by notice in a statutory instrument, delegate the powers

conferred on him or her by subsections (3) and (4) to an accounting officer and in that

case-

(a) it shall not be necessary for a report to be made in terms of subsection (2)

and the powers conferred by subsection (3) may be exercised after the

investigation in terms of subsection (1);

(b) the references in subsections (3) and (4) to the Secretary shall be read as

references to the accounting officer concerned.

(6) For the purposes of this section, property shall be deemed to have been

destroyed where the cost of repairing the damage to the property is estimated to be in

excess of the cost of replacing the property.

(7) Any person who is aggrieved by an order made against him or her in terms of

subsection (3) may, within thirty days after he or she has been notified thereof or such

further period as the appropriate Minister in special circumstances may allow, appeal in

writing to the Minister against such order, giving reasons why he or she feels that the order

should be revoked.

(8) An appeal in terms of subsection (7) shall be lodged with the appropriate

Minister who, before forwarding it to the Minister, shall submit it to the Comptroller and

Auditor-General for any comments he or she may wish to make thereon.

(9) After considering an appeal in terms of subsection (7) the Minister shall-

(a) reject the appeal; or157

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(b) make an order directing that the person concerned be released wholly or in

part from the original order;

as may appear to him or her to be just and reasonable.

13 Financial responsibilities of Ministers

(1) The management and disbursement of public resources allocated to a Ministry

by any Appropriation Act or other enactment shall be undertaken by the accounting officer

in consultation with the appropriate Minister.

(2) In performing his or her duties every Minister shall, in so far as the performance

of these duties impinge on the management and disbursement of public resources, take into

consideration the monthly reports submitted to him or her in terms of Part IV.

(3) An appropriate Minister shall endeavour to ensure that any public entity for

which he or she is responsible complies with this Act.

14 Ministerial directives having financial implications

(1) If-

(a) an accounting officer is directed by a Minister or Deputy Minister to order or

commit a payment which such accounting officer believes he or she is not

authorised to make in terms of this Act or any enactment; or

(b) a receiver of revenue is directed by a Minister or Deputy Minister-

(i) not to collect any public money which such receiver of revenue believes

he or she should collect; or

(ii) to deal with public money in a manner which the receiver of revenue

believes he or she is not authorised to deal with in terms of this Act or

any enactment;

he or she shall submit in writing to the Minister or Deputy Minister, as the case may be, his

or her objections and reasons therefor.

(2) If, after receiving any objections and reasons under subsection (1), the Minister

or Deputy Minister instructs the accounting officer or receiver of revenue, as the case may

be, in writing to do anything referred to in subsection (1)(a) or (b), the accounting officer or

receiver of revenue shall comply with the instruction, and shall immediately submit a written

report thereon to the Minister, the Accountant-General, the Comptroller and Auditor-General

and the Secretary to Cabinet.

(3) If an officer is directed by a superior officer or by a Minister or Deputy

Minister-

(a) to order or commit a payment which the officer believes he or she is not authorised

to make in terms of this Act or any enactment; or

(b) not to collect any public moneys which the officer believes he or she should

collect; or

(c) to deal with public money in a manner which the officer believes he or she is not

authorised to deal with in terms of this Act or any enactment;

the officer shall submit to his or her accounting officer in writing his or her objections and

reasons therefor.

(4) If, after receiving any objections and reasons under subsection (3), the

accounting officer or a Minister or Deputy Minister instructs the officer in writing to do

anything referred to in subsection (3)(a), (b) or (c), the officer shall comply with such

instruction, and shall immediately submit a written report thereon to-158

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(a) the Accountant-General; and

(b) the Comptroller and Auditor-General; and

(c) where the direction that gave rise to the objections was given by a Minister

or Deputy Minister, to the Secretary to the Cabinet;

and shall submit with the report a copy of the instruction concerned.

15 Reports to be laid before House of Assembly

(1) Every Minister shall lay before the House of Assembly-

(a) the annual report and financial statements referred to in Part IV and the audit

report on those statements, within one month after the accounting officer for

the public entity or constitutional entity for which the Minister is responsible,

receives the report; and

(b) the finding of a disciplinary authority, and any sanctions imposed by such

authority, which presided over a case of financial misconduct against an

accounting officer or accounting authority or other person in terms of section

87.

(2) If a Minister fails to lay before the House of Assembly, in accordance with

subsection (1)(a), the annual report and financial statements of the public entity or

constitutional entity, and the audit report on those statements, within six months after the

end of the financial year to which those statements relate-

(a) the Speaker of the House of Assembly shall require the Minister concerned

to give a written explanation to the House of Assembly setting out the reasons

why they were not laid before it; and

(b) the Comptroller and Auditor-General may issue a special report on the delay.

16 Money to be paid into Consolidated Revenue Fund

(1) In subsection (5)-

"small-scale commercial land" has the meaning given to it by section 2(1) of the

Rural District Councils Act [Chapter 29:13].

(2) Subject to this section and section 18(9), all revenues shall be paid into the

Consolidated Revenue Fund.

(3) A receiver of revenue may, if authorised by the Treasury and subject to such

conditions as may be fixed by the Treasury, withhold from the Consolidated Revenue

Fund revenues which have been collected and shall retain revenues so withheld in a deposit

account for the purpose of making refunds of revenues or money erroneously brought to

account as revenues.

(4) Public moneys that are not revenues shall, if so prescribed, be paid into the

Consolidated Revenue Fund with effect from such date as may be prescribed.

(5) Revenues received from the lease of a business or residential site in small-

scale commercial land shall be paid to the local authority in whose area that business or

residential site is situated.

17 Control of expenditures and issues from Consolidated Revenue Fund

(1) Notwithstanding anything to the contrary contained in any other enactment-

(a) no payment involving a charge upon the Consolidated Revenue Fund shall

be made without the written authority of the Treasury;159

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(b) no expenditure of public moneys shall be incurred on any service unless

provision therefor has been made by or in terms of this Act or any other

enactment.

(2) The Treasury may authorise the issue from the Consolidated Revenue Fund of

money appropriated by this Act or any other enactment to any specific purpose-

(a) not exceeding the amount so appropriated; or

(b) where the appropriation is made for a specific purpose without specifying

the amount so appropriated, the amount estimated by the Treasury to be

required for such purpose.

(3) The Treasury may authorise the issue from the Consolidated Revenue Fund

of-

(a) any amount which it considers appropriate to withdraw from the Consolidated

Revenue Fund for investments otherwise than through the accounts

established in terms of section 22(1) which form part of the Consolidated

Revenue Fund;

(b) any public moneys, that are not revenues, which have been or may be paid

into the Consolidated Revenue Fund for any purpose.

(4) Notwithstanding any authority issued in terms of subsection (2) or (3), the

Treasury may limit or suspend any expenditure authorised by such authority if, in its opinion,

such action is in the public interest.

(5) Whenever any money has been appropriated under a vote of Parliament for a

particular purpose, the Treasury may authorise the application of an expected saving on

that vote to meet an excess of expenditure on any existing subhead of that vote or expenditure

on a new subhead of that vote.

(6) Where, prior to the closing of the accounts of a financial year which relate to

money appropriated by any enactment, it is found that an amount has been improperly

charged against such appropriation, that amount shall be disallowed and the expenditure

recorded against that appropriation in that financial year shall be reduced by the amount so

disallowed.

(7) Any expenditure disallowed in terms of subsection (6) shall be dealt with as

an advance in terms of section 25 until such time as the amount has been recovered or the

charge has been otherwise adjusted.

(8) Where provision is made in an Appropriation Act and in an authority issued in

terms of this Act for the incurring of expenditure on any service, such provision shall lapse

and cease to have effect at the close of the financial year to which that Appropriation Act

relates and, save as is otherwise provided in this Act, the unexpended balance of any money

withdrawn from the Consolidated Revenue Fund shall be re-deposited in the Consolidated

Revenue Fund:

Provided that where any amount appropriated by any provision of an Appropriation

Act is specified in the Estimates of Expenditure to which such appropriation relates as

being required for a grant, then, unless the Treasury otherwise directs, the provisions of

this subsection shall not apply in respect of that amount or in respect of the effect of that

provision.

18 Establishment of other public funds

(1) Whenever-

(a) money is appropriated by Act of Parliament for the establishment of a fund

for a particular purpose; or160

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(b) in the opinion of the Minister, it is necessary or desirable for the purpose of

facilitating the accounting for public resources that a separate fund be

established;

the Treasury shall establish a fund for that purpose.

(2) On the establishment of a fund in terms of subsection (1), the Treasury shall

draw up a constitution for the regulation of the affairs of that fund, which constitution-

(a) shall specify the objects of the fund and the money which shall be payable

into that fund; and

(b) shall provide for the payments which may be made out of that fund; and

(c) may provide for such other matters as are considered to be necessary or

desirable.

(3) A constitution drawn up in terms of subsection (2) may be amended from time

to time or replaced as the Treasury thinks fit.

(4) Where a constitution has been drawn up in terms of subsection (2) or amended

or replaced in terms of subsection (3), the Minister shall lay a copy of that constitution or

the amendment to or replacement of that constitution, as the case may be, before the House

of Assembly on one of the ten days on which the House of Assembly sits next after that

constitution was drawn up or after that amendment or replacement of the constitution was

drawn up, as the case may be.

(5) Where a fund has been established before the date of commencement of this

Act, and is operating on that date in accordance with a constitution drawn up by or with the

approval of the Treasury-

(a) that fund shall be deemed to have been established in terms of subsection

(1); and

(b) that constitution shall be deemed to be a constitution drawn up in terms of

subsection (2), but it shall not be necessary to lay a copy thereof before the

House of Assembly in terms of subsection (4); and

(c) if that constitution purported to confer on the fund powers which may only

be exercised by a corporate body and the Minister has, by notice in the Gazette,

declared that the fund concerned shall be a corporate body-

(i) that fund shall be regarded as a body corporate with such powers as

may be conferred upon it by or in terms of its constitution, and shall be

deemed to have become a body corporate with effect from the date on

which the fund was established; and

(ii) any assets or liabilities of that fund shall not be regarded for any purposes

as assets or liabilities of the State; and

(iii) any employee of that fund shall not be regarded for any purposes as an

employee of the State; and

(iv) the provisions of subsection (3), the proviso to subsection (9), and

subsection (10) shall not apply in relation to the constitution of that

fund, but that constitution shall not be amended without the approval

of the Treasury.

(6) Subject to subsection (1), no fund shall be established by an officer in the

employment of the State for the deposit of public moneys unless the establishment of that

fund is authorised by or in terms of this Act or any other enactment.

(7) Where a fund administered by an officer in the employment of the State has

been established in terms of this Act or any other enactment-

(a) there shall be paid into and credited to that fund any moneys which are-

(i) appropriated by Act of Parliament for the purposes of that fund; or161

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(ii) required by any enactment or, in the case of a fund established in terms

of subsection (1), by the constitution thereof, to be paid into that fund;

(b) there may, subject to the approval of the Treasury, be paid into and credited

to that fund any money made available from other sources for the purposes

of that fund.

(8) The Minister may, on such terms and conditions as he or she may fix, make

loans or advances for a period not exceeding three hundred and sixty days to any statutory

fund or fund referred to in this section to enable the functions that should be carried out by

means of the use of the money in that fund to be carried out:

Provided that money loaned or advanced in terms of this subsection shall not be

used for capital expenditure unless the Minister has approved such use.

(9) Notwithstanding anything to the contrary contained in this Act, the receipts,

earnings or accruals of a statutory fund or fund referred to in this section shall be paid into

and form part of that fund:

Provided that, subject to any enactment by or in terms of which the fund is

established or, in the case of a fund established in terms of subsection (1), the provisions of

the constitution thereof, the Treasury may at any time direct that any moneys in such fund

shall be paid into the Consolidated Revenue Fund.

(10) Subject to any enactment by or in terms of which a fund is established or, in

the case of a fund established in terms of subsection (1), the provisions of the constitution

thereof, the Treasury may wind up that fund and shall transfer any moneys in that fund to

the Consolidated Revenue Fund.

(11) Any loan made in terms of subsection (8) shall be paid out of the Consolidated

Revenue Fund which is hereby appropriated to the purpose.

19 Anticipated or unauthorised excess expenditure

(1) If in respect of any financial year it is found that the amount appropriated by

the Appropriation Act to any purpose is insufficient or that a need has arisen for expenditure

for a purpose to which no amount has been appropriated by that Act, a supplementary

estimate showing the sums required shall be laid before the House of Assembly and, when

such estimates have been approved by the House, a supplementary Appropriation Bill shall

be introduced into the House providing for the issue of such sums from the Consolidated

Revenue Fund and the appropriation of those sums, under separate votes for the several

heads of expenditure approved, to the purposes specified therein.

(2) If at the close of accounts for any financial year it is found that money has

been expended-

(a) on any expenditure vote in excess of the amount appropriated for it by an

Appropriation Act; or

(b) for a purpose for which no money has been voted and appropriated; or

(c) on any sub-head of an expenditure vote in excess of the sum assigned thereto

in the estimates of expenditure for the financial year and to which no further

sum has been applied under any provision of this Act;

the amount of the excess expended or not appropriated, as the case may be, shall be included

in a statement of expenditure in excess which shall be laid before the House of Assembly.

(3) Where the House of Assembly, by means of a motion, allows any excess or

any amount expended but not appropriated to stand charged to the Consolidated Revenue

Fund, the sum required to meet such excess or such amount as shall be allowed, shall be

included in a Financial Adjustments Bill introduced to the House of Assembly in accordance

with section 103(5) of the Constitution.162

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20 Investment of money in Consolidated Revenue Fund

(1) Any sums standing to the credit of the Consolidated Revenue Fund may, subject

to compliance with authorised procedures, be-

(a) kept in cash or in such accounts with a financial institution as the Accountant-

General may from time to time determine;

(b) invested with a financial institution at call or subject to notice not exceeding

twelve months, or in an investment authorised by law for the investment of

trust funds and approved by the Minister.

(2) For the avoidance of doubt it is declared that, the investment of the sums

referred to section (1) shall not constitute a withdrawal from the Consolidated Revenue

Fund.

21 Money raised or received to exclude trust funds

(1) In this section "trustee" means an employee of the State appointed as a trustee

of any money or property by operation of the law or under the terms of a will or trust

settlement.

(2) For the avoidance of doubt it is declared that any reference to money raised or

received by the State does not include money held in trust by or under the control of any

court or officer of a court, a trustee, the Attorney-General or any receiver of revenue or any

sums of money held in trust by any other officer for purposes other than the purposes of the

State.

22 Establishment of banking accounts

(1) The Treasury shall establish accounts to be known as the Consolidated Revenue

Fund account and one or more sub-accounts of the Consolidated Revenue Fund, for the

deposit of money forming part of the Consolidated Revenue Fund, and may, within the

Consolidated Revenue Fund account and sub-accounts of the Consolidated Revenue Fund,

establish separate accounts for the investment of surplus funds, which accounts shall be

part of the Consolidated Revenue Fund.

(2) The Treasury may establish with a financial institution or any similar body or

authorise the establishment therewith, of such other accounts as it may deem necessary or

desirable for the purposes of controlling or administering public money.

(3) No account shall be opened with a financial institution or other such body,

whether within or outside Zimbabwe, for the deposit of public moneys otherwise than in

terms of this Act, unless the written authority of the Accountant-General has been obtained

therefor.

(4) Where an account has been opened with a financial institution or other body in

terms of this section, the officer responsible for the administration of that account shall not

incur any overdraft on that account otherwise than in accordance with the written authority

of the Accountant-General.

23 Accountant-General's warrants

(1) The Accountant-General shall, subject to this Act, by warrant under his or her

hand, authorise accounting officers to incur expenditure up to the limits and for the purposes

and subject to the conditions contained therein.

(2) No warrant shall be issued by the Accountant-General unless the sum and purpose

for which it is issued has been included in a warrant issued by the Paymaster-General, and

every warrant issued by the Accountant-General shall be subject to such limits and conditions

as the Minister may determine.163

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(3) The Accountant-General may not make any payment from or accept any charge

in his or her accounts, and an accounting officer may not incur any commitment or

expenditure, unless and until authorised by warrant to do so.

(4) For the purposes of subsection (3), a "commitment" means a contract or other

arrangement providing for a payment.

24 Special warrants for issues to meet unforeseen expenditure

(1) Subject to this section, the President may, by special warrant under his or her

hand directed to the Minister, authorise the issue from the Consolidated Revenue Fund in

advance of appropriation by Act of Parliament of such sums as may be required for the

purpose of meeting expenditure which-

(a) is unforeseen or has not been provided for or has been inadequately provided

for by any enactment; and

(b) in the opinion of the President cannot, without detriment to the public interest,

be postponed.

(2) The total amount of issues authorised under subsection (1) shall not at any one

time exceed five per centum of the total amount appropriated in the last main Appropriation

Act.

(3) An issue authorised in terms of subsection (1) shall be submitted for

appropriation by Act of Parliament on one of the fourteen days on which the House of

Assembly sits next after such issue has been authorised.

25 Advances by Treasury

(1) Subject to this section, the Treasury may make advances to or payments on

account of-

(a) another government;

(b) a trust or other account or fund administered by the State, a Minister or an

officer;

(c) a public entity or person;

(d) any constitutional entity where-

(i) the account or fund to which the cost is to be charged cannot

immediately be ascertained; or

(ii) the Treasury has directed that payment in respect of that entity shall be

made forthwith on receipt of an account relating thereto.

(2) The aggregate amount of the advances or payments made in terms of subsection

(1) which are outstanding at any one time shall not exceed-

(a) such amount as may be prescribed by the Minister; or

(b) five per centum of the total amount appropriated in the last main Appropriation

Act;

whichever is the greater:

Provided that the aggregate amount ascertained in terms of this subsection shall

not include any advances or payments which have been misappropriated.

(3) Save as is provided in subsection (1)(d), no advance or payment may be made

in terms of subsection (1) to meet expenditure for which-

(a) provision is voted in an Appropriation Act; or

(b) a special warrant in terms of section 24 may or should be issued.

(4) The Consolidated Revenue Fund is hereby appropriated for the purpose of

any advance or payment in terms of subsection (1).164

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26 Issue of money to carry on government at beginning of each financial year

(1) Subject to this section, the President may in any financial year, authorise in

advance of the main Appropriation Act for that year the issue from the Consolidated Revenue

Fund of such money as may be necessary to carry on the services of the Government

during the period commencing with the beginning of that financial year and expiring four

months thereafter or on the date of commencement of the main Appropriation Act, whichever

is the earlier.

(2) Immediately the main Appropriation Act comes into operation after any issue

authorised in terms of subsection (1), the issue so authorised shall be deemed to have been

made for the purposes of such Act and shall be accounted for in accordance with the

provisions thereof.

(3) The aggregate of all sums authorised to be issued from the Consolidated

Revenue Fund in terms of subsection (1) shall not exceed one-third of the sums included in

the estimates of expenditure for the preceding financial year that have been laid before the

House of Assembly.

27 Issue of money to carry on government after dissolution of Parliament

(1) Subject to subsection (2), if at any time Parliament has been dissolved before

any provision or sufficient provision has been made in terms of Chapter XI of the Constitution

or this Act for the carrying on of the Government of Zimbabwe, the President may authorise

the issue of money from the Consolidated Revenue Fund for the purpose of meeting

expenditure necessary to carry on the services of the Government during the period beginning

on the dissolution of Parliament and expiring three months after the day on which Parliament

first meets after that dissolution.

(2) An issue authorised in terms of subsection (1) shall be submitted for

appropriation by the House of Assembly in the first Appropriation Act after the issue was

authorised and shall be accounted for in accordance with that Appropriation Act.

PART III

NATIONAL BUDGET

28 Submission to Parliament of annual estimates of revenue and expenditure

(1) The Minister shall lay before the House of Assembly the annual budget for the

forthcoming financial year, not earlier than thirty days before or not later than thirty days

after the start of the forthcoming financial year, stating-

(a) estimates of the revenues, expenditure and financing requirements for the

Government of Zimbabwe for that year;

(b) for each vote of expenditure a statement of the classes of outputs expected to

be provided from that vote during the year and the performance criteria to be

met in providing those outputs.

(2) Notwithstanding subsection (1), if Parliament is dissolved less than three

months before the commencement of any financial year, the estimates for that year may be

laid before the House of Assembly as soon as is possible after the commencement of that

year.

(3) The votes of expenditure contained in the estimates other than statutory

expenditure shall be included in a Bill to be known as an Appropriation Bill which shall be

introduced into the House of Assembly to provide for the issue from the Consolidated

Revenue Fund of the sums necessary to meet the expenditure and the appropriation of

those sums to the purposes specified therein.165

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(4) If in respect of any financial year it is found that the amount appropriated by

an Appropriation Act is insufficient or that a need has arisen for expenditure for a purpose

to which no amount has been appropriated by that Act, a supplementary estimate, showing

the amount required, shall be laid before the House of Assembly, and the votes of expenditure

shall be included in a Supplementary Appropriation Bill to be introduced to the House of

Assembly to provide for the appropriation of those sums.

(5) The Minister may through the appropriate portfolio committee of Parliament,

seek the views of Parliament in the preparation and formulation of the annual budget, for

which purpose the approriate portfolio committee shall conduct public hearings to elicit

the opinions of as many stakeholders in the national budget as possible.

29 Minister may authorise advances

The Minister may, by warrant under his or her hand addressed to the Accountant-

General, authorise the issue of advances from the Consolidated Revenue Fund-

(a) to special funds if those advances are repayable not later than the end of the

financial year in which they were issued;

(b) to public officers, for the purpose of funding approved expenditure, if those

advances are repayable not later than the end of the financial year in which

they were issued.

30 Withholding of appropriated funds

The Treasury-

(a) may withhold from a Ministry any remaining funds appropriated for a specific

function if that function is transferred to another Ministry or any other

institution; and

(b) shall allocate those remaining funds to that other Ministry or institution.

31 Duration of appropriation and warrants

Every appropriation by Parliament of public money for the service of a financial year

and every warrant or other authority issued under this Act in respect of such financial year,

shall lapse and cease to have any effect at the close of that year, and the unexpended balance

of any moneys withdrawn from the Consolidated Revenue Fund shall be repaid to the

Consolidated Revenue Fund.

PART IV

FINANCIAL STATEMENTS

32 Preparation and reporting of annual financial statements by Ministries

(1) Every director of finance shall prepare or cause to be prepared the annual

financial statements of the Ministry concerned and shall submit such statements to the

accounting officer in that Ministry and to the Accountant-General within thirty days of the

year concerned.

(2) The Comptroller and Auditor-General or any independent auditor shall audit

the annual financial statements and return the audited statements to the accounting officer

within sixty days of receipt thereof.

(3) The annual report and audited financial statements shall-

(a) contain a report on the activities, outputs and outcomes of the Ministry;

(b) fairly present the state of affairs of the Ministry, reporting unit, constitutional

entity or public entity for which the Ministry is responsible;166

NO. 11/2009 PUBLIC FINANCE MANAGEMENT Cap. 22:19

(c) include, where appropriate-

(i) particulars relating to losses arising through criminal activities, and

criminal and disciplinary action taken;

(ii) instances of unauthorised expenditure;

(iii) instances of irregular expenditure;

(iv) instances of fruitless and wasteful expenditure;

(v) recoveries and write-offs of public resources;

(vi) any other matters as may be prescribed.

33 Preparation and reporting of quarterly financial statements

(1) Every director of finance shall prepare or cause to be prepared quarterly

financial statements of the Ministry concerned and shall submit such statements to the

accounting officer in that Ministry and the Accountant-General, within fourteen days of

the end of the respective quarter.

(2) Every accounting officer shall submit quarterly financial statements and reports

for submission by the Minister to the appropriate Parliamentary Portfolio Committee, within

sixty days of the end of the respective quarter.

(3) The Accountant-General shall prepare consolidated quarterly financial

statements and shall submit such statements to the Secretary, for presentation by the Minister

to the House of Assembly and to the appropriate Parliamentary Portfolio Committee, within

sixty days of the end of the respective quarter.

34 Preparation and reporting of monthly financial statements

(1) Every director of finance shall prepare or cause to be prepared monthly financial

statements of the Ministry concerned and shall submit such statements to the accounting

officer in that Ministry and to the Accountant-General, within fourteen days of the end of

the respective month.

(2) Every accounting officer shall submit monthly financial statements and reports

for submission by the Minister to the appropriate Parliamentary Portfolio Committee, within

thirty days of the respective month.

(3) The Accountant-General shall prepare consolidated monthly financial

statements and shall submit such statements to the Secretary, who shall publish such

statements or cause them to be published in the Gazette, within thirty days of the next

succeeding month.

35 Consolidation of annual financial statements

(1) Unless the Accountant-General otherwise directs, all appropriation accounts

shall be closed and the final returns submitted to the Treasury within one month after the

end of the financial year.

(2) Every accounting officer or receiver of revenue shall prepare and transmit to

the Accountant-General, within two months after the end of each financial year in such

form as may be required by the Accountant-General and with such explanatory notes as the

accounting officer or receiver of revenue may consider necessary, statements showing

receipts and disbursements of public money, not being public money which was paid into

a separate trust, fund or account (for which special provisions are made under subsection

(4)).

(3) Within three months after the end of each financial year the Accountant-General

shall prepare and transmit to the Comptroller and Auditor-General, in such detail as the167

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

Accountant-General, after consultation with the Comptroller and Auditor-General, considers

necessary, statements of accounts showing the transactions of the Consolidated Revenue

Fund and the financial position of the State on the last day of that financial year.

(4) Save as otherwise provided by this Act or any other enactment, an officer

administering a trust, fund or account shall, within three months after the end of each

financial year, prepare and transmit to the Accountant-General financial accounts, statements

or returns in relation to that trust, fund or account during that financial year in such form as

the Accountant-General may direct.

(5) If in the opinion of the responsible Minister it would not be in the public

interest to publish any account, statement or return which is required to be transmitted to

the Accountant-General in terms of subsection (4), the accounting officer shall, on the

instructions of the Minister given in writing, endorse the account, statement or return

accordingly.

(6) Every accounting officer of a Ministry shall-

(a) keep or cause to be kept proper records of account; and

(b) submit financial statements within sixty days of the end of the financial year

to-

(i) the Comptroller and Auditor-General for audit; and

(ii) the Accountant-General for consolidation.

(7) Every accounting officer of a constitutional entity or public entity shall submit

to the Minister, the appropriate Minister and the Accountant-General, within one hundred

and twenty days of the end of the financial year-

(a) an annual report on the activities of the entity; and

(b) audited financial statements of the entity; and

(c) the audit report on those statements.

(8) Every accounting officer referred to in subsections (6) and (7) shall-

(a) submit to the House of Assembly the annual report and the audited financial

statements relating to the operations of the constitutional entity or public

entity, as the case may be, within thirty days of the completion of the audit;

(b) submit to the Minister, the appropriate Minister, the Accountant-General,

the House of Assembly and the Comptroller and Auditor-General, any other

reports that may be required in terms of this Act.

(9) Every accounting officer of a Ministry shall, within ninety days of the end of

the financial year, submit to the respective Parliamentary Portfolio Committee the unaudited

annual financial statements of his or her respective Ministry.

(10) The Minister shall, within ninety days of the end of the financial year, submit

to the House of Assembly the unaudited consolidated annual financial statements.

(11) Every appropriate Minister shall within thirty days of the tabling of the Report

of the Comptroller and Auditor-General thereon before the House of Assembly, submit to

the respective Parliamentary Portfolio Committee the audited annual financial statements

of his or her respective Ministry.

(12) The Minister shall submit to the House of Assembly audited consolidated

annual financial statements within one hundred and eighty days of the end of the financial

year.168

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36 Content of financial statements

(1) Every financial statement shall state the following amounts and compare such

amounts in each case with the corresponding budgeted amount in respect of the relevant

period-

(a) the actual revenue for the relevant period and for the financial period

concerned to the end of that period; and

(b) the actual expenditure for each vote, distinguishing between capital and

recurrent expenditure for that period.

(2) The Accountant-General may determine-

(a) the format of the statement of revenue and expenditure and the annual

report; and

(b) any other details that the financial statement may contain.

37 Financial statements and budgets to comply with generally accepted

accounting practice

The financial statements required to be prepared in terms of this Act shall be prepared

in accordance with generally accepted accounting practice.

38 Publishing of reports on financial statements

(1) Within thirty days after the end of each month, the Treasury shall publish in

the Gazette a statement of actual revenue and expenditure with regard to the Consolidated

Revenue Fund.

(2) After the end of a prescribed period, but at least quarterly, every Ministry

shall submit to the Treasury a statement of revenue and expenditure with regard to the

Consolidated Revenue Fund, for publication in the Gazette within thirty days after the end

of each prescribed period.

(3) The statement shall specify the following amounts and compare those amounts

in each instance with the corresponding budgeted amounts for the relevant financial year-

(a) the actual revenue for the relevant period, and for the financial year up to the

end of that period; and

(b) the actual expenditure for each vote, distinguishing between capital and

recurrent expenditure, for the relevant period, and for the financial year up

to the end of that period; and

(c) actual borrowing for the relevant period, and for the financial year up to the

end of that period.

(4) The Treasury may determine-

(a) the format of the statement of revenue and expenditure and the annual

report; and

(b) any other details the statement may contain.

PART V

PUBLIC ENTITIES

39 Application of Part V

Subject to section 40, this Part shall apply to public entities specified in-

(a) paragraph (a) or (b) of the definition of "public entity" in section 2 that are171

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

designated by the Minister by notice in a statutory instrument for the purpose

of this Act; and

(b) paragraph (c) and (d) of the definition of "public entity" in section 2 that are

specified by the Minister by notice in a statutory instrument for the purpose

of this Act:

Provided that every corporate body referred to in paragraph (a) of the definition of

"public entity" in section 2, and every company referred to in paragraph (b) of that definition,

which existed immediately before the date of commencement of this Act, shall be deemed

to be a designated corporate body unless the Minister by notice in the Gazette excludes any

such corporate body or company.

40 Public entities that are not prescribed

(1) The accounting officer of a Ministry responsible for any public entity that is

not a designated corporate body or is not specified in terms of section 39(b) shall, within

thirty days of the formation, creation, incorporation or registration of the public entity,

notify the Treasury, in writing, that the public entity is not so designated or specified.

(2) The Minister shall not, in terms of section 39(a), designate the following-

(a) any constitutional entity; and

(b) the Reserve Bank of Zimbabwe referred to in the Reserve Bank of Zimbabwe

Act [Chapter 22:15]; and

(c) the Audit-Office referred to in the Audit Office Act [Chapter 22:18].

41 Accounting authorities

(1) Every public entity shall have an authority which shall be accountable for the

purposes of this Act.

(2) If the public entity-

(a) has a board or other controlling body, that board or body shall be the

accounting authority for that entity; or

(b) does not have a board or other controlling body, the chief executive officer

or the person in charge of that public entity shall be the accounting authority

for that public entity unless the enactment or memorandum and articles of

association or foundational document relating to that public entity designates

another person as the accounting authority.

(3) The Treasury may, in exceptional circumstances, approve or appoint a person

other than one referred to in subsection (2) as the accounting authority for a public entity.

(4) The Treasury may at any time withdraw an approval or instruction made in

terms of subsection (3).

42 Fiduciary duties of accounting authorities

(1) The accounting authority for a public entity shall-

(a) exercise the utmost care to ensure reasonable protection of the assets and

records of the public entity;

(b) act with fidelity, honesty, integrity and in the best interests of the public

entity in managing the affairs of the public entity;

(c) on request, disclose to the appropriate Minister all material facts, including

those reasonably discoverable, which in any way may influence the decisions

or actions of the appropriate Minister in relation to that public entity;172

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(d) seek, to the extent that it is competent for the accounting authority to do so,

to prevent any prejudice to the financial interests of the State.

(2) An accounting authority or (if the accounting authority is a board or other

body) every member of the accounting authority may not-

(a) act in a way that is inconsistent with the responsibilities of an accounting

authority under this Act; or

(b) use the position of such an authority, or any confidential information obtained

as such an authority, for personal gain or to improperly benefit another person.

(3) If an accounting authority is a board or other body, a member thereof shall-

(a) disclose to the other members of the accounting authority any direct or indirect

personal or private business interest that that member or any spouse, partner

or close family relation of that member may have in any matter before the

accounting authority;

(b) withdraw from the proceedings of the accounting authority when the matter

is considered, unless the other members of the accounting authority decide

that the member's direct or indirect interest in the matter is trivial or irrelevant.

43 Assignment of powers and duties of accounting authorities

(1) The accounting authority for a public entity may-

(a) in writing delegate any of the powers entrusted or delegated to the accounting

authority under this Act to an employee of that public entity; or

(b) instruct an employee of that public entity to perform any of the duties assigned

to the accounting authority under this Act.

(2) A delegation or instruction in terms of subsection (1)-

(a) is subject to any limitations and conditions the accounting authority may

impose; and

(b) shall not divest the accounting authority of the responsibility for the exercise

of the delegated power or the performance of the assigned duty.

44 General responsibilities of accounting authorities

(1) An accounting authority for a public entity-

(a) shall ensure that that public entity establishes and maintains-

(i) effective, efficient and transparent systems of financial and risk

management and internal controls;

(ii) a system of internal audit under the control and direction of an audit

committee operating in accordance with sections 80 (which shall apply

to public entities subject to such changes as may be necessary, including

the substitution of the "Public Service Commission" by the accounting

authority in question) and 84;

(iii) an appropriate procurement and provisioning system which is fair,

equitable, transparent, competitive and cost-effective;

(iv) a system for properly evaluating all major capital projects prior to a

final decision on the project;

(b) shall take effective and appropriate steps to-

(i) collect all revenue due to the public entity concerned; and173

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(ii) prevent irregular expenditure, fruitless and wasteful expenditure, losses

resulting from criminal conduct, and expenditure not complying with

the operational policies of the public entity; and

(iii) manage available working capital efficiently and economically;

(c) is responsible for the management, including the safeguarding of the assets

and revenue and expenditure and liabilities of the public entity;

(d) shall comply with any tax, levy, duty, pension and audit commitments

imposed by any enactment;

(e) shall take effective and appropriate disciplinary steps against any employee

of the public entity who-

(i) contravenes or fails to comply with a provision of this Act applicable

to such entity; or

(ii) commits an act which undermines the financial management and

internal control system of the public entity; or

(iii) incurs or permits irregular expenditure or fruitless and wasteful

expenditure;

(f) is responsible for the submission by the public entity of all financial

statements, reports, returns, notices and other information to the House of

Assembly, the appropriate Minister or the Treasury, as may be required by

this Act or the enactment relating to the public entity;

(g) shall comply, and ensure compliance by the public entity, with the provisions

of this Act and any other enactment applicable to the public entity.

(2) If an accounting authority is unable to comply with any of the responsibilities

of an accounting authority under this Part, the accounting authority shall promptly report

the inability, together with the reasons therefor, to the appropriate Minister and the Treasury.

45 Responsibilities of employees of public entities

An employee of a public entity shall to the extent that it is competent for the employee

to do so-

(a) ensure that the system of financial management and internal control

established for that public entity is implemented;

(b) be responsible for the effective, efficient, economical and transparent use of

the financial and other resources of the public entity;

(c) take effective and appropriate steps to prevent any irregular expenditure and

fruitless and wasteful expenditure and any under-collection of revenue due;

(d) comply with those provisions of this Act applicable to the public entity;

(e) be responsible for the management, including the safeguarding, of the assets

of the public entity and the management of its liabilities.

46 Plans and projections by designated corporate bodies

The accounting authority for every designated corporate body shall submit to the

accounting officer of the appropriate Ministry and to the Accountant-General, at least thirty

days (or such greater period agreed by the appropriate Ministry with the Accountant-

General) before the start of its financial year-

(a) a projection of revenue, expenditure and borrowings for that financial year

in the prescribed format; and

(b) an annual corporate plan in the prescribed format covering the affairs of that

designated corporate body, including its subsidiaries, for the following three

financial years, and such plan shall include targets, outputs and outcomes.174

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47 Annual budgets of specified public entities

(1) The accounting authority for a specified public entity shall submit to the

appropriate Minister, at least thirty days before the start of the financial year of the Ministry

(or another period agreed to between the Minister and the public entity), a budget of estimated

revenue and expenditure for that financial year and an annual plan relating to that public

entity, for approval by the appropriate Minister.

(2) The budget shall be submitted to the appropriate Minister through the

accounting officer, who may make recommendations to the Minister with regard to the

approval or amendment of the budget.

(3) A public entity which is required to submit a budget in terms of subsection (1),

may not budget for a deficit, and may not accumulate surpluses, unless it obtains the prior

written approval of the Treasury.

(4) The accounting authority for such public entity shall be responsible for ensuring

that the expenditure of the public entity is in accordance with the approved budget.

48 Information to be submitted by accounting authorities

(1) In this section "significant" means-

(a) in relation to a shareholding in a company, shares equivalent to ten per centum

or more of the total shares of the company; or

(b) in relation to a partnership, trust, unincorporated joint venture or similar

arrangement, an ownership interest equivalent to ten per centum or more in

any such arrangement; or

(c) in relation to any of the matters specified in subsection (3)(d), (e) or (f), of a

magnitude or nature specified by the Treasury in an instruction prescribed

under section 78.

(2) The accounting authority for a public entity shall submit to the Treasury or the

Comptroller and Auditor-General such information, returns, documents, explanations and

motivations as may be prescribed or as the Treasury or the Comptroller and Auditor-General

may require.

(3) The accounting authority for a public entity shall, before it engages in any of

the following transactions, promptly notify and seek the approval of the Treasury and

appropriate Minister in writing, namely-

(a) the establishment or participation in the establishment of a company or

subsidiary by the public entity;

(b) participation to a significant extent by the public entity in a partnership, trust,

unincorporated joint venture or similar arrangement;

(c) the acquisition or disposal of a significant shareholding in a company;

(d) the acquisition or disposal of a significant asset;

(e) the commencement or cessation of a significant business activity; or

(f) any other transaction which involves a significant change in the nature or

extent of its interest in a partnership, trust, unincorporated joint venture or

similar arrangement:

Provided that if the appropriate Minister lodges no objections in writing to any

such transaction within thirty days of being notified thereof, the transaction concerned

shall be deemed to have been approved by the appropriate Minister.

(4) The Minister may exempt in writing any public entity from complying with

subsection (3).175

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49 Annual reports and financial statements

(1) The accounting authority for a public entity shall-

(a) keep full records of the financial affairs of the public entity;

(b) prepare financial statements for each financial year in accordance with

generally accepted accounting practice;

(c) submit the financial statements referred to in paragraph (b) within two months

after the end of the financial year-

(i) to the auditors of the public entity for auditing; and

(ii) to the Accountant-General; and

(iii) if it is a designated corporate body or specified public entity, to the

Treasury;

(d) submit within five months of the end of a financial year to the Treasury, the

appropriate Minister and, if the Comptroller and Auditor-General did not

perform the audit of the financial statements, the Comptroller and Auditor-

General-

(i) an annual report on the activities of that public entity during that

financial year; and

(ii) the financial statements for that financial year after the statements have

been audited; and

(iii) the report of the auditors on those statements.

(2) The annual report and financial statements referred to in subsection (1)(d)

shall-

(a) fairly present the state of affairs of the public entity, its business, its financial

results, its performance against predetermined objectives and its financial

position as at the end of the financial year concerned;

(b) include particulars of-

(i) any material losses through criminal conduct and any irregular

expenditure and fruitless and wasteful expenditure that occurred during

the financial year;

(ii) any criminal prosecution or disciplinary steps taken as a consequence

of such losses or irregular expenditure or fruitless and wasteful

expenditure;

(iii) any losses recovered or written off;

(iv) any financial assistance received from the State and commitments made

by the State on its behalf; and

(v) any other matters that may be prescribed;

(c) include the financial statements of any subsidiaries of the public entity.

(3) An accounting authority shall submit the report and statements referred to

in subsection (1)(d), to the appropriate Minister for him or her to table in the House of

Assembly.

(4) The Treasury may direct that, instead of a separate report, the audited financial

statements of a specified public entity be incorporated in those of a Ministry designated by

the Treasury.176

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50 Corporate governance

Every public entity shall adhere to and implement the principles of sound corporate

governance policies, procedures and practices.

51 Reconstruction of designated corporate bodies in certain circumstances

(1) If in relation to the accounts of any designated corporate body the Comptroller

and Auditor-General certifies in writing to the Minister responsible for that body that the

designated corporate body in question has-

(a) failed to keep proper financial records with the result that the Comptroller

and Auditor-General can form no opinion as to the true state of affairs of the

designated corporate body for the relevant financial year; or

(b) engaged in fruitless and wasteful expenditure for the relevant financial year

with the result that it has incurred a deficit requiring the expenditure of public

money which, in the opinion of the Comptroller and Auditor-General, is

excessive;

the Minister responsible for that designated corporate body may, after affording the

accounting authority of the body in question a reasonable opportunity to make representations

in the matter, request the Minister responsible for the Reconstruction of State-Indebted

Insolvent Companies Act [Chapter 24:27] (No. 27 of 2004) to appoint an administrator for

that designated corporate body in terms of this section.

(2) If in the financial year following that in which the Comptroller and Auditor-

General made a certificate in relation to a designated corporate body in terms of subsection

(1), no administrator was appointed for that designated corporate body and, in relation to

the accounts of that body the Comptroller and Auditor-General again certifies in writing,

this time to the Minister, that the designated corporate body in question has-

(a) failed to keep proper financial records with the result that the Comptroller

and Auditor-General can form no opinion as to the true state of affairs of the

designated corporate body for the relevant financial year; or

(b) engaged in fruitless and wasteful expenditure for the relevant financial year

with the result that it has incurred a deficit requiring the expenditure of public

moneys which, in the opinion of the Comptroller and Auditor-General, is

excessive;

the Minister shall request the appropriate Minister in writing to show cause why the

designated corporate body should not be reconstructed in accordance with this section.

(3) If no written response is made to the written request referred to in subsection

(2), or if the response is not in the Minister's opinion satisfactory, the Minister may, after

consultation with the President, request the Minister responsible for the Reconstruction of

State-Indebted Insolvent Companies Act [Chapter 24:27] (No. 27 of 2004) to appoint an

administrator for that designated corporate body.

(4) The Reconstruction of State-Indebted Insolvent Companies Act [Chapter 24:27]

(No. 27 of 2004) shall apply to a designated corporate body referred to in subsection

(1) or (2)-

(a) to the extent specified in the Schedule; and

(b) notwithstanding anything contained in the enactment or memorandum and

articles of association constituting that body.177

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PART VI

LOANS, GUARANTEES AND OTHER COMMITMENTS

52 Borrowing Powers

(1) The President may authorise the Minister to borrow, subject to this Act, a sum

of money for any purpose considered by the President to be necessary or expedient.

(2) The aggregate of the amounts that may be borrowed in terms of subsection (1)

in any financial year by way of loans raised within Zimbabwe shall not exceed thirty per

centum of the general revenues of Zimbabwe in the previous financial year:

Provided that the limit fixed in terms of this subsection may be exceeded in any

financial year if the Minister obtains the authority of a resolution of the House of Assembly

to do so.

53 Purposes for which the Minister may borrow money

The Minister may borrow money in terms of section 52 for the following purposes

only-

(a) to refinance a maturing debt or a loan paid before the redemption date; or

(b) to finance national budget deficits; or

(c) to obtain foreign currency for any Government undertaking; or

(d) to maintain credit balances on a bank account of the Consolidated Revenue

Fund; or

(e) to regulate internal monetary conditions should the necessity arise; or

(f) any other purpose approved by the House of Assembly by special resolution.

54 Manner of raising State loans

(1) The Minister may, when so authorised in terms of section 52, borrow money,

subject to subsection (3), upon such conditions as he or she may fix.

(2) Prior to borrowing money the Minister shall-

(a) ensure that it is in the public interest to do so; and

(b) ensure that it is consistent with Government economic and fiscal policy; and

(c) satisfy himself or herself that the Government has or is likely to have on

current projections the financial ability to meet all the obligations under the

loan, including future loan payments; and

(d) consult with the Attorney-General and obtain in writing from the Attorney-

General an opinion approving the legal aspects of the loan agreement.

(3) Without derogation from the generality of subsection (1), the Minister may, in

terms of that subsection, borrow by way of-

(a) the issue of bonds or stock; or

(b) the issue of Treasury bills; or

(c) an advance or bank overdraft.

55 Certain State loans exempt from tax

The Minister may fix as a condition of a State loan that the capital and the interest

payable thereon shall be exempt, either in whole or in part, from-

(a) all taxes, present and future; or

(b) any particular tax;178

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payable in terms of any enactment and, if the Minister does so provide, the capital and the

interest payable thereon shall be so exempt:

Provided that the Minister shall not exercise the power conferred by this section in

relation to a State loan where the capital is represented by securities that are registered in

Zimbabwe unless the House of Assembly has, by resolution, approved the exercise of such

power in relation to that particular State loan.

56 Proceeds of State loans

The proceeds of all State loans shall be brought to account in the Consolidated Revenue

Fund or, if the Minister so directs, in the National Development Fund established in terms

of section 18.

57 Security for State loans and expenses in connection therewith

All State loans and expenses or charges incurred thereon or in connection therewith

shall be secured and charged upon the assets and general revenues of Zimbabwe, and all such

securities shall rank equally without priority.

58 Repayment of State loans and payment of expenses in connection therewith

The Minister shall, as circumstances require, pay from the Consolidated Revenue

Fund, which is hereby appropriated to the purpose, moneys required to repay any State loan

and any expenses or charges incurred thereon or in connection therewith.

59 Signing of loan agreements

The Minister may, on such conditions as he or she may determine, authorise in advance

and in writing, another person to sign a State loan agreement when the Minister borrows

money in terms of section 65(2) (a).

60 Repayment, conversion and consolidation of loans

The Minister may, on such terms and conditions as he or she may determine, and, when

necessary, with the concurrence of the lender-

(a) repay any State loan prior to the redemption date of that loan; or

(b) convert the State loan into any other loan; or

(c) consolidate two or more State loans into an existing or new State loan; or

(d) convert the State loan into equity or other securities held by the State.

61 Power to give guarantees

(1) The Minister may, subject to this Part, in such manner and upon such conditions

as he or she thinks fit with the consent of the President, guarantee the repayment of the

capital of, and the payment of expenses or charges incurred on or in connection with-

(a) any indebtedness or other financial obligation raised, incurred or established,

as the case may be, inside or outside Zimbabwe by a person approved by the

Minister for purposes which will, in the opinion of the Minister, promote

employment or the development of natural resources or the tourist industry

or are otherwise in the public interest or in the interest of the economy of

Zimbabwe; or

(b) any indebtedness or other financial obligation raised, incurred or established,

as the case may be, outside Zimbabwe for the purposes of the trustee of the179

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District Development Fund Act [Chapter 29:06] or a designated corporate

body referred to in paragraph (a) of the definition of "public entity" in section

2, or a local authority.

(2) Without derogation from the generality of subsection (1), the Minister may, in

fixing the conditions of a guarantee in terms of paragraph (a) and (b) of that subsection,

require the debtor to provide for all or any of the following matters-

(a) appropriating and duly applying the moneys or other benefits concerned for

the purpose or purposes approved by the Minister in terms of subsection (1)

(a) or (b), as the case may be;

(b) charging on the general income and assets of the debtor or any other income

or assets which may be available for the purpose, the capital of the

indebtedness or other financial obligation concerned and any interest, charges

or other expenses incurred or accrued therein or in connection therewith,

and the repayment to the Consolidated Revenue Fund of any amount paid in

terms of section 63(a);

(c) raising or securing the raising of sufficient money to meet the liabilities

referred to in paragraph (b).

(3) The aggregate of the amounts that may be guaranteed in terms of subsection

(1)(a) and (b) in any financial year in respect of indebtedness or other obligations raised,

incurred or established, as the case may be, within Zimbabwe shall not exceed forty per

centum of the general revenues of Zimbabwe in the previous financial year:

Provided that the limit fixed in terms of this subsection may be exceeded in any

financial year if the Minister obtains the authority by a resolution of the House of Assembly

to do so.

62 Security for guarantees

Any liability of the State in connection with a guarantee shall be secured and charged

upon the assets and general revenues of Zimbabwe, and all such securities shall rank equally

without priority.

63 Payments in connection with guarantees

The Minister shall-

(a) as circumstances require, pay from the Consolidated Revenue Fund, which

is hereby appropriated to the purpose, moneys required to be paid in

connection with a guarantee; and

(b) pay into the Consolidated Revenue Fund-

(i) any sum received by way of repayment of any money paid in terms of

paragraph (a); and

(ii) any fees paid in connection with a guarantee.

64 Loans to designated corporate bodies

(1) Subject to this section, the Minister may, on such terms and conditions as he

or she may fix, make a loan for a period not exceeding three hundred and sixty days to a

designated corporate body for the purpose of enabling that designated corporate body to

perform the functions assigned to it:

Provided that a loan in terms of this subsection to the Agricultural Finance

Corporation (trading as "Agribank") as defined in section 3 of the Agricultural Finance

Corporation Act [Chapter 18:02] may be made for a period not exceeding five hundred

and forty days.180

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(2) The aggregate of the amount of loans made to all designated corporate bodies

in terms of subsection (1) remaining unpaid at any time shall not exceed five hundred

thousand United States dollars or the equivalent in any such currency as the Minister may

prescribe from time to time by notice in the Gazette.

(3) A loan made in terms of subsection (1) shall be paid out of the Consolidated

Revenue Fund which is hereby appropriated to the purpose.

65 Restrictions on borrowing, guarantees and other commitments

(1) A public entity that is designated or specified in terms of section 39 shall not

borrow money or issue a guarantee, indemnity or security, or enter into any other transaction

that binds or may bind that entity or the Consolidated Revenue Fund to any future financial

commitment, unless such borrowing, guarantee, indemnity, security or other transaction-

(a) is authorised by this Act; and

(b) in the case of public entities referred to in paragraphs (a) and (c) of the

definition of "public entity" in section 2, is also authorised by the enactment

which establishes or governs it, so long however as the applicable provisions

relating to this Act are complied with.

(2) The Government may only through the following persons borrow money, or

issue a guarantee, indemnity or security, or enter into any other transaction that binds or

may bind the Consolidated Revenue Fund to any future commitment-

(a) the Minister; or

(b) in the case of the issue of a guarantee, indemnity or security, the appropriate

Minister acting with the concurrence of the Minister in terms of section 61.

(3) A public entity referred to in subsection (1) may only through the following

persons borrow money, or issue a guarantee, indemnity or security or enter into any other

transaction that binds or may bind that public entity to any future financial commitment-

(a) in the case of a public entity referred to in paragraph (a) of the definition of

"public entity" in section 2, the accounting authority for that public entity;

(b) in the case of a public entity referred to in paragraph (b) of the definition of

"public entity" in section 2, the accounting authority for that public entity,

subject to any conditions the Minister may impose;

(c) in the case of any other public entity, the appropriate Minister, with the

concurrence of the Minister in terms of section 61.

(4) The Minister may, in writing, permit a public entity referred to in subsection

(3)(c) or a constitutional entity to borrow money for operational expenses up to a prescribed

limit, including a temporary bank overdraft, subject to such conditions as the Minister may

impose.

(5) A person mentioned in subsection (2) or (3) shall not delegate a power conferred

in terms of that subsection, except with the prior written approval of the Minister.

(6) A public entity authorised to borrow money in terms of subsection (3)-

(a) shall annually submit to the Minister a borrowing programme for the year; and

(b) may not borrow money in a foreign currency above a prescribed limit, except

when that public entity is a company in which the State is the sole shareholder.

66 Consequences of unauthorised transactions and how to exclude them

If a person, otherwise than in accordance with section 65, lends money to a Ministry,

public entity, constitutional entity or statutory fund to which this Act applies or purports to

issue on behalf of such a Ministry, public entity, constitutional entity or statutory fund a181

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

guarantee, indemnity or security, or enters into any other transaction which purports to bind

such Ministry, public entity, constitutional entity or statutory fund to any future financial

commitment, the State and that Ministry, public entity, constitutional entity or statutory fund

shall not be bound by the lending contract or the guarantee, indemnity, security or other

transaction:

Provided that any person wishing to-

(a) lend money to a Ministry, public entity, constitutional entity or statutory

fund; or

(b) enter into any guarantee, indemnity, security or other transaction purporting

to bind such Ministry, public entity, constitutional entity or statutory fund to

any future financial commitment;

may, through the Minister, obtain the written opinion of the Attorney-General on the question

whether such lending, indemnity, guarantee, security or transaction has been entered into

in accordance to section 65, and such opinion shall be conclusive of the question whether

it is so compliant or not.

67 Minister to be exempt from certain obligations

The Minister or a registrar or agent shall not be under any obligation as regards the due

fulfilment of a trust, whether express, implied or constructive, to which bonds, stock or

Treasury bills may be subject, notwithstanding that the Minister, registrar or agent has had

notice that the bonds, stock or Treasury bills are held subject to the trust.

68 Registrar to make entries necessary to give effect to court orders

A registrar shall, upon being served with an order of a court of competent jurisdiction

which relates to a bond or stock or has the effect of vesting a bond or stock in a person, make

all entries in the appropriate register which it is necessary to make for the purpose of giving

effect to the order.

69 Forgery of securities

(1) Any person who-

(a) forges a bond, stock certificate or Treasury bill; or

(b) makes use of or attempts to make use of a forged bond, stock certificate or

Treasury bill with intent to defraud;

shall be guilty of an offence and liable to a fine not exceeding level fourteen or to

imprisonment for a period not exceeding twenty years or to both such fine and such

imprisonment.

(2) For the purposes of subsection (1), a person shall be deemed to forge a bond,

stock certificate or Treasury bill if he or she-

(a) makes a false bond, stock certificate or Treasury bill; or

(b) falsifies a genuine bond, stock certificate or Treasury bill, whether by

alteration, addition, effacement or otherwise;

knowing it to be false with the intention that it shall be used or acted upon as genuine,

whether within Zimbabwe or not, and any bond, stock certificate or Treasury bill so made

or falsified shall be deemed to be forged.

70 Powers of Minister

The Minister may-

(a) establish registries for the registration of bonds or stock;182

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(b) appoint registrars, agents and any other persons necessary for the raising,

issuing, management and repayment of State loans or for the doing of any

act which, in terms of this Act or any agreement relating to a State loan, may

or shall be done by the Minister, registrar, agent or such other person;

(c) make arrangements for-

(i) the conversion and replacement of securities issued in terms of this

Act or a repealed law;

(ii) the payment of interest on State loans;

(d) fix the fees and charges which shall be payable for the giving of a guarantee

or the performance of services for which provision is made under this Act;

(e) provide for any other matter which, under this Act or any agreement relating

to a State loan, is necessary or convenient to be provided for.

71 Disclosure of information concerning loans and guarantees

(1) Where a guarantee is given the Minister shall lay before the House of Assembly

a statement relating to that guarantee on any of the first seven sittings when the House of

Assembly first sits after the guarantee is first given under section 65 (2) (b).

(2) If disclosure of a guarantee in terms of subsection (1) is, in the opinion of the

Minister, likely to bring the national interest into risk, the Minister shall lay the statement

referred to in subsection (1) before the Public Accounts Committee, with the stipulation

that no disclosure of the statement be made by the Committee or any member thereof

without the written leave of the Minister.

72 Annual, monthly and quarterly reports on loans and guarantees

(1) Annual and monthly reports on guarantees that are required to be prepared in

terms of subsection (3) shall list the guarantees given in terms of section 65(2)(b) granted

during the financial year or during a particular month and the cumulative national position

regarding the guarantees.

(2) Annual and monthly reports on State loans that are required to be prepared in

terms of subsection (3) shall disclose information on the loans obtained in the respective

year and month, the loans that have been repaid during that year and month and the total

amount of loans outstanding at the end of that year or month.

(3) The Accountant-General shall prepare the annual and monthly reports referred

to in subsections (1) and (2), together with a quarterly report thereon, and shall submit such

reports to the Secretary within thirty days of the respective month, quarter or year concerned.

(4) Annual and quarterly reports referred to in subsection (3) shall be laid before

the House of Assembly by the Minister within sixty days of the end of the year and quarter

concerned.

73 Interest and repayment of loans to be direct charges

The following payments in connection with loans shall be direct charges against the

Consolidated Revenue Fund-

(a) the repayment of money borrowed by the Minister in terms of this Part; and

(b) the interest payable on money so borrowed; and

(c) any cost associated with such borrowing and approved by the Treasury.

74 Establishment of sinking funds

The Minister, in the case of a State loan raised by means of the issue of bonds or stock-183

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(a) for a period of six years or more, shall, unless he or she is satisfied that

arrangements for the repayment of the State loan are such as not to require

the establishment of a sinking fund, establish a sinking fund;

(b) for a period of less than six years, may establish a sinking fund;

for the purpose of redeeming the State loan.

75 Trustees for sinking funds

(1) For the administration of a sinking fund the Minister shall appoint trustees

upon whom he or she shall, subject to this Part, confer and impose such functions as he or

she may consider expedient.

(2) The Minister may at any time after giving reasonable notice in writing to the

trustee or trustees concerned-

(a) vary the functions of a trustee; or

(b) remove a trustee from office; or

(c) in the event of the removal from office, death or retirement of a trustee,

appoint a trustee in his or her place; or

(d) appoint additional trustees.

76 Payment into sinking funds

(1) The Minister shall pay to the trustees of each sinking fund in each financial

year for the benefit of the fund such amount as he or she may determine, which shall not be

less than-

(a) one and one-half per centum of the nominal value of the bonds or stock

issued in connection with the State loan for which the sinking fund was

established; and

(b) in the case of bonds or stock issued in connection with the State loan for

which the sinking fund was established which have been cancelled, a sum

equal to the interest which would have been payable had the bonds or stock

not been cancelled.

(2) Payments into a sinking fund in terms of subsection (1) shall be made out of

the Consolidated Revenue Fund, which is hereby appropriated to the purpose.

77 Application of moneys in sinking funds

(1) All moneys received by the trustees of a sinking fund, whether paid in terms of

section 76 or arising by way of investment or otherwise, shall-

(a) until required in terms of subsection (4), be invested in bonds, stock or Treasury

bills or stock issued by a local authority or designated corporate body referred

to in paragraph (a) of the definition of "public entity" in section 2; or

(b) be used to purchase, at the earliest favourable opportunity in the opinion of

the trustees, the bonds or stock issued in connection with the State loan for

which the sinking fund was established.

(2) The trustees of a sinking fund may vary any investment made in terms of

subsection (1)(a).

(3) Bonds or stock purchased by the trustees in terms of subsection (1) (b) shall be

cancelled and not re-issued.

(4) When moneys held by trustees of a sinking fund and investments for the time

being representing those moneys are required for the purpose of redeeming the bonds or

stock issued in connection with the State loan for which the sinking fund was established,

the trustees shall deliver the moneys and investments to the State for that purpose.184

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PART VII

GENERAL TREASURY MATTERS

78 Treasury instructions or directions

(1) The Treasury may prescribe or issue instructions or directions to Ministries,

whether individually or collectively, concerning-

(a) any matter that shall be prescribed for Ministries in terms of this Act;

(b) the recovery of losses and damages of public resources;

(c) the handling of, and control over, trust money and property entrusted to the

State or any employee of the State in his or her capacity as such;

(d) the rendering of free services by or on behalf of the State;

(e) the writing off of losses of public resources or amounts owed to the State;

(f) liability for losses and damages of public resources and procedures for the

recovery thereof;

(g) the cancellation or variation of contracts to the detriment of the State;

(h) the settlement of claims by or against the State;

(i) the waiver of claims by the State;

(j) the remission of money due to the Consolidated Revenue Fund, refunds of

revenue and payments from the Consolidated Revenue Fund, as an act of

grace;

(k) the alienation, letting or other disposal of State property;

(l) gifts or donations by or to the State;

(m) the charging of expenditure against particular votes;

(n) the variation of approved budgets by way of virements;

(o) the establishment of and control over public entities;

(p) the improvement and maintenance of immovable State property;

(q) the avoidance of fruitless and wasteful, unauthorised and irregular

expenditure;

(r) the determination of any scales of fees, other charges or rates relating to

revenue accruing to, or expenditure from, the Consolidated Revenue Fund;

(s) the treatment of any specific expenditure;

(t) vouchers or other proofs of receipts or payments, which are defective or

have been lost or damaged;

(u) assets which accrue to the State by operation of any law;

(v) any other matter that may facilitate the application of this Act;

(w) any matter that may be prescribed for all Ministries, public entities,

constitutional entities and statutory funds to which this Act applies by virtue

of section 4 (1);

(x) financial management and internal control;

(y) the determination of a framework for an appropriate procurement and

provisioning system which is fair, equitable, transparent, competitive and

cost-effective;

(z) audit committees, their composition, appointment and functioning;

(aa) internal audit units and their functioning;

(bb) the duties and responsibilities of accounting officers, receivers of revenue

and other persons;

(cc) the issue of receipts;185

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(dd) the reporting of any loss or destruction of or deficiency in public resources;

(ee) the remission or writing off of public money;

(ff) any other matter that may facilitate the administration of this Act.

(2) A Treasury instruction or direction in terms of this section may be limited in

its application to different classes of-

(a) a Ministry, public entity, constitutional entity and statutory fund to which

this Act applies by virtue of section 4(1);

(b) accounting officers;

(c) accounting authorities.

(3) Treasury instructions or directions referred to in subsection (1) shall not come

into force until they are approved by the Minister and published as a statutory instrument

or general notice in the Gazette.

(4) The Treasury may on good grounds approve a departure from a Treasury

instruction or direction referred to in subsection (1) on any condition it deems fit and shall

promptly inform the Comptroller and Auditor-General in writing when it does so.

79 Determination of interest rates for debts owing to State

(1) Subject to any other enactment the Minister, by notice in the Gazette, shall

determine-

(a) a uniform interest rate applicable to loans granted out of the Consolidated

Revenue Fund;

(b) a uniform interest rate applicable to all other debts which must be paid into

the Consolidated Revenue Fund.

(2) An interest rate determined in terms of subsection (1) (b) may differentiate

between different categories of debt.

(3) Where any other enactment empowers the Minister or any other Minister to

fix an interest rate for moneys payable to the State, the notice referred to in subsection (1)

shall not, unless the notice expressly provides otherwise, affect the exercise of such power

under that enactment.

PART VIII

AUDIT

80 Internal auditors

(1) To assist the Treasury in carrying out the duties referred to in section 6, the

Public Service Commission may appoint an officer of the Public Service as an internal

auditor to any Ministry or any reporting unit of a Ministry.

(2) The functions of an internal auditor appointed in terms of subsection (1) shall

be-

(a) to monitor the financial administration and procedures of the Ministry or

reporting unit concerned to ensure that-

(i) proper accounting and bookkeeping transactions and procedures are

carried out; and

(ii) proper accounting records are maintained; and

(iii) adequate internal checks and controls are observed; and

(iv) assets under the control of the Ministry or reporting unit are properly

accounted for; and

(v) instructions and directions issued in terms of section 6 are complied

with; and186

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(vi) generally, that the requirements of this Act are being observed;

and

(b) to assess the cost-effectiveness of any projects undertaken by the Ministry or

reporting unit concerned; and

(c) to perform any other function that may be assigned to him or her by the

accounting officer of the Ministry or reporting unit concerned.

(3) In the performance of his or her functions in terms of subsection (2), an internal

auditor-

(a) shall have free access at all reasonable times to any records, books, vouchers,

documents and public resources under the control of the Ministry or reporting

unit concerned;

(b) shall have direct access to the accounting officer of the Ministry or reporting

unit concerned;

(c) may, without payment of any fee, cause search to be made in and extracts to

be taken from any record, book, voucher or document under the control of

the Ministry or reporting unit concerned;

(d) may call upon any officer in the Ministry or reporting unit concerned to

give, and shall be entitled to receive without undue delay from that officer,

any explanations and information he or she may require to enable him or her

to perform his or her functions.

(4) If at any time it appears to an internal auditor that any offence has been

committed in relation to-

(a) the collection, receipt, custody, control or payment of public money; or

(b) the receipt, custody, control, issue, sale, transfer or delivery of any State

property;

he or she shall immediately bring the matter to the notice of the Treasury, the appropriate

accounting officer or receiver of revenue, as the case may be, and the Comptroller and

Auditor-General.

(5) Whenever an internal auditor has completed any internal audit programme, he

or she shall prepare a report on the financial administration and accounting system in the

Ministry or reporting unit to which he or she has been appointed, and may include in such

report any instances of hindrance or obstruction he or she has encountered in the discharge

of his or her duties, and shall transmit copies of such report to the accounting officer, the

Treasury and the Comptroller and Auditor-General.

81 External auditors

(1) The Comptroller and Auditor-General shall audit or cause to be audited the

financial statements of all accounting officers, receivers of revenue, statutory funds,

designated or specified public entities and constitutional entities.

(2) The Comptroller and Auditor-General shall satisfy himself or herself that-

(a) all reasonable precautions have been taken to safeguard the collection of

public money and that the provisions of this Act and any other enactment

relating to the accounting for public resources and of any direction or

instruction issued in terms of section 78 or departmental instruction referred

to in section 6(3) which relate thereto have been duly observed;

(b) all payments of public money-

(i) have been made in accordance with proper authority; and

(ii) have been properly charged; and

(iii) are supported by sufficient vouchers or proof of payment;187

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(c) all moneys expended and charged to an appropriation account-

(i) have been applied to the purposes for which the grants made by

Parliament were intended; and

(ii) were expended in conformity with the appropriate authority;

(d) all reasonable precautions have been taken to safeguard and control State

property and all issues of State property were made in accordance with proper

authority.

(3) If at any time it appears to the Comptroller and Auditor-General that any

irregularity has occurred in-

(a) the collection, receipt, custody, control or payment of public money; or

(b) the receipt, custody, control, issue, sale, transfer or delivery of any State

property;

he or she shall immediately bring the matter to the notice of the Treasury, the appropriate

accounting officer or receiver of revenue, as the case may be, and-

(c) the Public Service Commission, where in his or her opinion the irregularity

constitutes misconduct on the part of any member of the Public Service; and

(d) the Commander of the branch of the Defence Forces concerned, where in his

or her opinion the irregularity constitutes misconduct or a breach of discipline

on the part of any member of the Defence Forces; and

(e) the Commissioner-General of Police, where in his or her opinion the

irregularity constitutes misconduct or breach of discipline on the part of any

member of the Police Force; and

(f) the Commissioner of Prisons, where in his or her opinion the irregularity

constitutes misconduct or a breach of discipline on the part of any member

of the Prison Service; and

(g) the Attorney-General, where in his or her opinion the irregularity constitutes

a criminal offence.

(4) In the performance of his or her functions in terms of this section, an external

auditor shall have the same powers as an internal auditor under section 80(3).

82 Auditor's report on public entities

(1) In this section, "group accounts" means, in the case of a public entity that is a

holding company, a statement of financial position and statement of comprehensive income

of the holding company and all its subsidiaries.

(2) An auditor shall make a report on the accounts of every public entity examined

by him or her, including every statement of financial position, and statement of comprehensive

income and all group accounts, where appropriate, of a public entity presented to him or her

for audit, and the report shall contain statements as to the following matters-

(a) whether in his or her opinion, the statement of financial position and statement

of comprehensive income or group accounts of the public entity are properly

drawn up to give a true and fair view of the state of the public entity's affairs

at the date of its balance sheet and of its profit or loss for its financial year

ended on that date;

(b) in the case of a public entity registered as a banking institution in terms of

the Banking Act [Chapter 24:24], whether in his or her opinion, the balance

sheet and statement of comprehensive income or group accounts of that public

entity are properly drawn up so as to disclose its state of affairs at the date of

its balance sheet and its profit or loss for its financial year ended on that date.188

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(3) An auditor shall include in his or her report statements which, in his or her

opinion, are necessary if-

(a) he or she has not obtained all the information and explanations which to the

best of his or her knowledge and belief were necessary for the purposes of

the audit;

(b) so far as appears from his or her examination, proper books of account have

not been kept by the public entity;

(c) proper returns adequate for the purpose of his or her audit have not been

received from branches not visited by him or her;

(d) the public entity's statement of financial position and statement of

comprehensive income are not in agreement with the books and returns from

the branches of a public entity.

(4) In the event of the auditor being unable to make a report in terms of subsection

(2) or to make it without further qualification, he or she shall inscribe upon or attach to the

statement of financial position a statement of that fact or of the nature of the qualification,

as the case may be, and he or she shall set forth therein the facts or circumstances which

prevent him or her from making the report or from making it without qualification.

83 Annual reports and audited financial statements

The annual report and audited financial statements of a Ministry, public entity,

constitutional entity or statutory fund shall-

(a) contain a report on the activities, outputs and outcomes of the Ministry;

(b) fairly present the state of affairs of the Ministry, public entity or constitutional

entity, as the case may be;

(c) include, where appropriate-

(i) particulars relating to losses arising through criminal activities;

(ii) instances of unauthorised expenditure;

(iii) instances of irregular expenditure;

(iv) instances of fruitless and wasteful expenditure;

(v) criminal and disciplinary action taken in connection with any of the

foregoing;

(vi) recoveries and write-offs;

(vii) any other matters as may be prescribed.

84 Audit committees

(1) Every Ministry, statutory fund, constitutional entity and public entity shall

establish an audit committee.

(2) The responsibilities of an audit committee shall include the following-

(a) to review internal controls, including the scope of the internal audit

programme, and the internal audit findings, and to recommend appropriate

action to be taken by the responsible authorities;

(b) to ensure that accounts are prepared in a timely and accurate manner and to

ensure the prompt publication of the annual accounts;

(c) to review with the Comptroller and Auditor-General or other external auditors,

as may be appropriate, the scope of their audit plan, the system of internal

audit reports and assistance given by officers or staff to the auditors and any

findings and action to be taken in connection therewith.189

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(3) An audit committee-

(a) shall consist of at least three persons, of whom, in the case of a Ministry-

(i) one person shall not be a member of the Public Service; and

(ii) the majority shall not be persons employed in that Ministry, except

with the approval of the appropriate Minister; and

(iii) the chairperson shall not be a member of the Public Service employed

in the Ministry;

(b) shall meet at least twice a year; and

(c) may be established for two or more Ministries, or public or constitutional

entities if the Treasury considers it to be more economical.

(4) The Comptroller and Auditor-General, and external and internal auditors, shall

have the right to attend and participate in the deliberations of the audit committee.

(5) Upon the request of any auditors, the chairperson of an audit committee shall

convene a meeting to consider any matter that the auditors believe should be brought to the

attention of the responsible authorities.

(6) The chairperson of the audit committee shall send or cause to be sent-

(a) all notices of audit committee meetings; and

(b) all minutes of audit committee meetings;

to the Accountant-General, Comptroller and Auditor-General, internal auditors and external

auditors where appropriate.

PART IX

FINANCIAL MISCONDUCT

85 Financial misconduct by accounting officers, etc.

(1) An accounting officer for a Ministry, reporting unit, public entity, constitutional

entity or statutory fund commits an act of financial misconduct if that accounting officer

wilfully or negligently-

(a) fails to comply with section 10 or a requirement of Part IV; or

(b) makes or permits any unauthorised expenditure, irregular expenditure or

fruitless and wasteful expenditure.

(2) An employee of a reporting unit or a constitutional entity to whom a power or

duty is assigned in terms of this Act commits an act of financial misconduct if that employee

wilfully or negligently fails to exercise that power or perform that duty.

(3) A person employed in the Treasury to whom a power or duty is assigned in

terms of section 6 or Part IV commits an act of financial misconduct if that person wilfully

or negligently fails to exercise that power or perform that duty.

86 Financial misconduct by accounting authorities and employees of

public entities

(1) An accounting authority for a public entity commits an act of financial

misconduct if that accounting authority wilfully or negligently-

(a) fails to comply with a requirement of Part IV or V; or

(b) makes or permits any irregular expenditure or fruitless and wasteful

expenditure.190

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(2) If the accounting authority is a board or other body, every member thereof is

individually liable for any financial misconduct of the accounting authority.

(3) An employee of a public entity to whom a power or duty is delegated or assigned

in terms of section 43 commits an act of financial misconduct if that employee wilfully or

negligently fails to exercise that power or perform that duty.

(4) Financial misconduct is a ground for the dismissal of, or other disciplinary

sanction prescribed under section 87 against, a member or person referred to in subsection

(2) or (3), notwithstanding any other enactment.

87 Disciplinary proceedings

A charge of financial misconduct against an accounting officer or person referred to

in section 85, or an accounting authority or member of an accounting authority or an

employee referred to in section 86, shall be investigated, heard and disposed of in terms of

the statutory or other conditions of appointment or employment applicable to that accounting

officer, authority, person or employee, and any regulations prescribed by the Minister in

terms of section 88.

88 Regulations on financial misconduct procedures

(1) The Minister may make regulations prescribing-

(a) the manner, form and circumstances in which complaints, disciplinary

measures and criminal charges of financial misconduct must be processed or

undertaken and a report thereon made to the Treasury and the Comptroller

and Auditor-General, including a report on-

(i) the particulars of the alleged financial misconduct; and

(ii) the steps taken in connection with such financial misconduct;

(b) matters relating to the investigation of allegations of, and disciplinary

sanctions for, financial misconduct;

(c) the circumstances in which the Treasury may direct that disciplinary steps

be taken or criminal charges laid against a person for financial misconduct;

(d) the circumstances in which a disciplinary board which hears a charge of

financial misconduct shall include a person whose name appears on a list of

persons with expertise in State finances or public accounting compiled by

the Treasury;

(e) the circumstances in which the findings of a disciplinary board and any

sanctions imposed by the board shall be reported to the Treasury and the

Comptroller and Auditor-General;

(f) any other matters to the extent necessary to facilitate the objects of this Part.

(2) In relation to members of the Public Service who perform functions in terms

of this Act-

(a) no disciplinary proceedings may be commenced against any such member

under regulations made in terms of subsection (1) if such proceedings have

been commenced in terms of the Public Service Act [ Chapter 16:04];

(b) if disciplinary measures are commenced against any such member under

regulations made in terms of subsection (1), the outcome of such proceedings

shall be confirmed by the Public Service Commission.191

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PART X

GENERAL

89 Abandonment of claims and write-off of public resources

(1) The House of Assembly may, by resolution, authorise the Minister to the extent

specified in the resolution to abandon and remit any claims by or on behalf of the Government

or any service thereof and to write off losses of public resources.

(2) The Minister may in writing delegate to any officer any powers which he or

she is authorised to exercise by resolution of the House of Assembly under this section.

90 Unclaimed money

(1) Unless otherwise provided for in any other enactment, at the end of each

financial year any money in any bank account of a Ministry, constitutional entity, public

entity or statutory fund that has remained unclaimed for a period of six years from the date

it was payable to any person entitled thereto, shall be deposited with the Treasury.

(2) Any money deposited with the Treasury in terms of subsection (1) shall be

accompanied by such statement setting out such particulars relating to that money as the

Treasury may require.

(3) A notice of a deposit of unclaimed money in terms of subsection (1) that is of

or above a prescribed limit shall be made in the Gazette to enable any person with any

claim to the money to lodge such claim in writing no later than thirty days after publication

of such notice.

(4) Where any money is paid to a claimant in terms of subsection (3) and

subsequently such money is claimed by another person, neither the Treasury nor the State

shall be under any liability to the second claimant by reason of having paid the money to

the first claimant.

(5) Where in relation to money notified in terms of subsection (3) no claim is

made or a claim is dismissed, any such money shall become public money and be paid into

the Consolidated Revenue Fund, and no person shall have any right of action against the

Treasury or the State in relation to the money.

91 Offences and penalties

(1) An accounting officer shall be guilty of an offence and liable upon conviction

to a fine not exceeding level ten or to imprisonment for a period not exceeding five years or

to both such fine and such imprisonment, if that accounting officer wilfully or in a grossly

negligent way fails to comply with section 10 or a requirement of Part IV.

(2) An accounting authority shall be guilty of an offence and liable upon conviction

to a fine not exceeding level ten or to imprisonment for a period not exceeding five years or

to both such fine and imprisonment, if that accounting authority wilfully or in a grossly

negligent way fails to comply with section 42, 44 or 48.

(3) Any person, other than a person mentioned in section 65(2) or (3), who purports

to borrow money or to issue a guarantee, indemnity or security for or on behalf of a

Ministry, reporting unit, public entity or constitutional entity, or who enters into any other

contract which purports to bind a Ministry, reporting unit, public entity or constitutional

entity to any future financial commitment, shall be guilty of an offence and liable upon

conviction to a fine not exceeding level ten or to imprisonment for a period not exceeding

five years, or to both such fine and imprisonment.

(4) Any person who-192

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(a) hinders or obstructs-

(i) the Comptroller and Auditor-General; or

(ii) the Treasury; or

(iii) an internal auditor appointed in terms of section 80;

(b) refuses or fails to produce any information that is in that person's possession

or under that person's control in relation to the financial management,

financial performance or banking activities of a Ministry or in relation to the

management or control of any State property or liability when required to do

so in terms of this Act;

(c) resists or obstructs any person acting in the discharge of his or her functions

in terms of this Act;

(d) without reasonable excuse, refuses or neglects to pay any public money into

a bank account of the State or a Ministry;

(e) without reasonable excuse, refuses or neglects to pay any trust money into a

trust bank account;

(f) makes any statement or declaration, or gives any information required to be

given in terms of this Act, knowing it to be false or misleading or not believing

it to be true;

(g) does any act for the purpose of procuring for another person-

(i) the improper payment of any public money or trust money;

(ii) the improper use of any public resources;

shall be guilty of an offence and liable to a fine not exceeding level six or to imprisonment

for a period not exceeding one year or to both such fine and such imprisonment.

(5) Any person who, under examination by an internal or external auditor in terms

of Part VIII, makes any statement which he or she knows to be false or does not have

reasonable grounds to believe to be true, shall be guilty of an offence and liable to a fine not

exceeding level seven or to imprisonment for a period not exceeding two years or to both

such fine and such imprisonment.

92 Powers of Minister to make regulations

(1) The Minister may make regulations providing for all matters which by this Act

are required or are permitted to be prescribed or which, in his or her opinion, are necessary

or convenient to be prescribed in order to carry out or give effect to this Act.

(2) Without derogating from subsection (1), the Minister may make regulations on

the borrowing of money by or on behalf of public entities referred to in section 65(3)(b)

and (c) and providing for the registration, issue, transfer and payment of interest on bonds

and stocks.

93 Repeals and savings

(1) The Audit and Exchequer Act [Chapter 22:03] and the State Loans and

Guarantees Act [Chapter 22:13] are repealed.

(2) For the avoidance of doubt it is declared that no loan, indemnity, bond, security

or other obligation contracted in terms of the State Loans and Guarantees Act [Chapter

22:13] shall be affected by the repeal of that Act under section (1).

(3) Notwithstanding subsection (1)-

(a) all statutory instruments made under the repealed Acts that were in force

immediately before the date of commencement of this Act shall continue to

be in force thereafter until repealed or replaced under section 92;193

Cap. 22:19 PUBLIC FINANCE MANAGEMENT NO. 11/2009

(b) all funds established in terms of section 30 of the Audit and Exchequer Act

[Chapter 22:03] and all constitutions relating to those funds that were in

force immediately before the date of commencement of this Act, shall

continue in force thereafter until repealed or replaced under section 18.

SCHEDULE (Section 51)

APPLICATION OF RECONSTRUCTION OF STATE-INDEBTED INSOLVENT COMPANIES ACT

[CHAPTER 24:27] TO DESIGNATED CORPORATE BODIES

PART I

DESIGNATED CORPORATE BODIES THAT ARE STATUTORY BODIES

All the provisions of the Act shall, with such incidental changes as may be necessary,

apply, except sections 4; 8; 12; 18(1)(d), (f), (g), (i) and (m); 19; 21; 22; Part V and sections

29; 30(1) and (3); 31; 32; 33 and 34.

PART II

COMPANIES IN WHICH THE STATE HAS A CONTROLLING INTEREST

All the provisions of the Act shall, with such incidental changes as may be necessary,

apply, except sections 4; 8; 12; 30 (1) and (3); 33; and 34(1).194

NO. 11/2009 PUBLIC FINANCE MANAGEMENT Cap. 22:19

I certify that this Bill has been

duly passed by Parliament.

Clerk of Parliament.