Story by Stanley James, Business Editor
TREASURY is tightening screws on funding of devolution projects to ensure local authorities are accountable and utilise money allocated for the development of communities.
The Fiscal Transfer System (IGFTS) administrative manual was launched in Harare this Wednesday to outline treasury agenda in further allocation of resources for devolution projects countrywide.
Information contained in the manual indicates that incompetent local authorities, including those that fail to meet expected standards, will be removed from further funding allocations.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube highlights the importance of the new system in ensuring overall socio-economic development.
“Despite making annual budgetary allocations, undeniably, in the absence of a clear IGFTS manual, a number of challenges were encountered ranging from project conceptualisation, appraisal, implementation, contract management, monitoring and evaluation as well as accounting and reporting, since the inception of devolution budgetary allocations , a number of infrastructure projects have been implemented at lower tiers of government with significant impact being recorded on the lives of the majority,” he said.
With the manual also stating that local authorities which underspend devolution funds will not get further resources, good service delivery is high on the agenda.
“It is incumbent upon all the local authorities to embrace the tenets of the new guidelines in terms of ensuring efficiency while facilitating maximum use of the resources that will in the future help improves the lives of the people and anchor socio economic development,” said the Minister of Local Government and Public Works, Honourable Daniel Garwe.
Government expects the manual to increase the uptake of projects under the devolution agenda.
“Local authorities as defined in sections 274 and 275 of the Constitution have the responsibility of representing and managing the affairs of the people within their jurisdictions. Section 301 (3) further provides that a budget of at least five percent of the national revenues raised in any financial year should be allocated to the provinces and local authorities as their share in that fiscal year, these funds are to be used for the development of the provinces so that no region is left behind. This, therefore, means that local communities should benefit from resources in their areas, the state and all institutions and agencies at every level endeavour to facilitate equitable exploitation of resources,” noted the Chief Secretary to the President and Cabinet, Dr Martin Rushwaya.
The devolution agenda unveiled under the Second Republic seeks to empower local government authorities by ensuring development reaches all parts of the country.
