To enforce compliance, the bill prescribes severe penalties for Accounting Officers and AIE holders who fail to adhere to the rules. Penalties include a 150% surcharge on misappropriated amounts, immediate suspension, dismissal, and prison terms of up to five years
A new bill tabled by Rongo MP Paul Abuor aims to crack down on the misuse of public funds through tougher penalties and stricter oversight mechanisms. The Public Finance Management (Amendment) Bill 2025 outlines measures to ensure funds allocated by the National Treasury are strictly used for approved projects in the national budget.
The proposed legislation mandates that all funds disbursed to ministries, state departments, SAGAs, and parastatals must be deposited into dedicated project-specific accounts. This measure seeks to eliminate delays and mismanagement by ensuring that funds are reserved solely for their intended purposes.
To enforce compliance, the bill prescribes severe penalties for Accounting Officers and AIE holders who fail to adhere to the rules. Penalties include a 150% surcharge on misappropriated amounts, immediate suspension, dismissal, and prison terms of up to five years.
Additionally, oversight mechanisms would be enhanced, with the Controller of Budget required to issue quarterly compliance reports. Monthly expenditure reports from ministries and SAGAs would also be made publicly available to increase transparency.
A digital monitoring platform is proposed to track fund usage in real-time, enabling oversight bodies and the public to access detailed data. Banks found facilitating unauthorized transactions could also face significant penalties and legal repercussions.
The bill also highlights capacity-building initiatives, with mandatory training for public officers on fund management to promote adherence to the new rules. If passed, the bill is expected to significantly reduce the ballooning pending bills, restore public confidence in government processes, and ensure that public funds are utilized effectively.
