Lupari confirms Cash Flow Management Processes to remain in place even with improving Commodity Prices

The Chief Secretary to Government, Ambassador Isaac B. Lupari CBE, has made the point that while global commodity prices might be improving, the public service will continue to maintain reforms that have been introduced over the past year.

“We have procedures in place to ensure that the implementation of the 2016 budget remains on track despite global economic pressures,” Ambassador Lupari said.

“While oil has broken through the US$50 barrier, and overall we are seeing a healthy increase in commodity prices, but we must remain vigilant. 

“As part of proactive cash flow management, we are ensuring that all essential expenditure relating to key priorities of government is funded every week.

“Part of this involves minimizing spending on non-core activities such as the purchase of vehicles and overseas travel, and allowances that are outside of the normal pay policy.

“The Government is further undertaking additional measures to install greater efficiency in the way we do business in the public sector.

“We are undertaking high review of major cost items. 

"This includes office rentals, which we spent K250 million last year. The Prime Minister has directed that we return Government officials to Government buildings and we are in the process of doing this.

“We are reviewing the overrun in salaries from last year that was around K300 million. We are appointing an audit team to clear all payroll systems and identify anomalies.

“I have further instructed that consultancies in the public service will be rationalised and consultants only engaged where there is not an organic capacity in the bureaucracy for these specific skillets.”

The Chief Secretary said as well as continuing to manage spending, the Government is tapping revenue streams that had not been providing sufficient funding.

“We are investigating and reviewing measures for Government revenue collection, in both tax and non-tax areas, as part of 2017 budget preparations.

“As part of this, we are working with the Internal Revenue Commission and Customs to collect outstanding tax liabilities of K2 billion. This is money that belongs to the people for use by the people of this nation and we are bringing it into the system.”

On the issue of foreign exchange availability, the Chief Secretary said the Central Bank is doing everything possible to increase foreign currency availability, but he said some businesses could do more to ease pressure.

“It is important that the private sector, particularly the companies that are keeping their money abroad, repatriate these funds.

“The Government has directed that the Central Agencies Co-ordinating Committee (CACC) investigate exporters in the fisheries and forestry sectors who are keeping funds in overseas accounts. CACC will work closely with forestry and fisheries to make appropriate recommendations to Cabinet.”