Collection, management of public finances: Finance minister takes steps to enforce OHADA uniform rules.

In a release signed recently, the government official called on Directors General of government establishments and related agencies to be proactive in the collection of state revenues and management of public finances. 

He also urged them to keep working to in line with the sub regional legal rules on public finance management, enunciated in the OHADA Uniform Act.

In the communique addressed to Directors General of public establishments, Presidents of Regional Councils, Mayors and City Mayors, Minister Motaze outlined the revised provisions of the Organisation for the Harmonisation of Business Laws in the Central African Sub Region, known as OHADA.

The Finance boss reminded them that on October 17, 2023, in Kinshasha, Democratic Republic of Congo, member states of the sub region agreed and put up a legal document to guide the incorporation into the state budget, all revenue receipts not later than three months after such monies have been receipted for.

The provision, Motaze said, is not being respected by many of his collaborators. While stating that it is time to enforce the law, the minister also warned that erring officers will be sanctioned. 

He added that when monies collected are not forwarded or paid as soon as possible into the appropriate state treasury account, government considers such revenues as debts owed it. 

Motaze highlighted that the contents of this provision is contained in Article 30 section 1 of the OHADA Uniform Law.

Specifically, this section states that any revenues received from individuals or corporate entities as moral persons, be they recovery of debts or current payments for services rendered on behalf of the state, need to be entered into the public accounts register and credited to the state budget for the running fiscal period.

The measure, the minister said, is to reinforce the authority of the financial executor so that financial equilibrium, (balance), could be assured between the payer and the public office.

Considering the potential risks that could obtain in such financial transactions, the Minister of Finance calls on public officials to adopt prudent and concrete approaches to revenue collection and recovery of debts owed government.

Motaze underscored the importance of giving pride of place to avoiding negotiated payment of revenues accrued, so that public establishments do not become places for negotiated and installmental payments of government revenues. 

The public registration office was specifically singled out and called to avoid this error so that the registry office does not become a place of delayed payment of public revenues.

Minister Motaze advised the Communal Legislator to reinforce and impose its authority as executor of entitlements, taking into account the strain of preserving financial equilibrium, of the entities that were debited.

In the same letter, the Minister also invited public administrations to put in place mechanisms that prevent the emergence of disparities, by transmitting to hierarchy, on a yearly basis, cases of legal actions emanating from or engaged with associated financial risks. 

This article was first published in The Guardian Post Edition No:3247 of Wednesday October 02, 2024