The Ministry of Finance and the World Bank have launched a nationwide review of public financial management at local government level, with the aim of improving how resources are managed and services delivered to communities.
The Sub-National Public Expenditure and Financial Accountability (PEFA) Assessment and Public Financial Management (PFM) Review was introduced under the theme, “Strengthening Sub-National Public Expenditure and Financial Accountability Assessment and Public Financial Management Review”.
The launch was attended by officials from the Ministry of Finance, representatives of Metropolitan, Municipal and District Assemblies (MMDAs), the Inter-Ministerial Coordinating Committee on Decentralisation, the Internal Audit Agency, development partners and other government institutions.
Speaking on behalf of the Minister for Finance, Dr. Cassiel Ato Forson, the Chief Director of the Ministry of Finance, Mr. Patrick Nomo, said the exercise should provide a detailed examination of the financial management difficulties facing local assemblies.
He said effective public financial management at national level needed to be supported by strong systems in local government, where people felt the effects of government spending most directly.
Mr. Nomo said the review should not be limited to confirming whether procedures and systems existed. Instead, it should investigate why weaknesses had continued and identify practical ways to resolve them.
He called on assessment teams to look beyond standard checklists and examine the underlying causes of financial management problems. He also said increased transfers to assemblies needed to be matched by deliberate investment in their ability to manage funds responsibly and maintain local infrastructure.
The PFM Review will cover all 261 Metropolitan, Municipal and District Assemblies. Alongside it, detailed PEFA assessments will be conducted in 10 selected assemblies.
The work will assess budgeting, revenue mobilisation, expenditure management, procurement and accountability. Its purpose is to identify shortcomings and produce practical recommendations for improvement.
Mr. Nomo said the success of the exercise would ultimately depend on whether its recommendations were implemented and led to better financial management and tangible improvements for citizens.
Mrs. Janine Walz, Head of Cooperation at Switzerland’s State Secretariat for Economic Affairs (SECO), said the effectiveness of local governance should be judged by the difference it made to people’s lives.
She said sound public financial management was essential to ensuring that public resources supported children’s education, healthcare and other daily needs.
Mrs. Walz reaffirmed Switzerland’s backing for the initiative and urged participating institutions to exchange information openly. She said the process should also be used to strengthen institutional capacity, accountability and public trust.
Mr. Raymond Muhula, Lead Public Sector Specialist at the World Bank Group, said the growing resources being allocated to assemblies must result in improved services for local communities.
He said the assessments would show which parts of existing financial management systems were working effectively and where further improvements were required.
Mr. Muhula described the programme as government-led and reaffirmed the World Bank’s commitment to working with local institutions on practical recommendations to shape policy and improve service delivery.
The exercise is being supported by the World Bank and Switzerland’s State Secretariat for Economic Affairs (SECO), in collaboration with the Inter-Ministerial Coordinating Committee on Decentralisation.
