Friday, April 19, 2013

Sound public financial management required - To prevent corruption


THE acting Governor of the Bank of Ghana, Dr Henry Kofi Wampah, has called for stronger partnership between the government and development partners to work together to achieve a long lasting improvement in the management of public funds.
Dr Wampah explained that a sound public financial management system was a precondition for effectively channelling resources to service delivery, such as basic education and health services, adding that “good public financial management systems can help prevent corruption and foster aid effectiveness.”
The acting governor made these observations when he opened a West African regional course on Public Financial Management (PFM); Budgeting, Planning and Performance in Accra last Monday. The nine-day course is being organised by the West African Institute for Financial and Economic Management (WAIFEM) and the African Capacity Building Foundation (ACBF).
Dr Wampah underscored the importance of good public financial management systems for democratic governance, macroeconomic stability, effective use of resources and poverty reduction.
He said although much had been done to improve the quality of PFM, through the development of medium-term expenditure framework and moves to adopt fiscal responsibility act, a lot remained to be done to achieve the desired results.
“It is even more important that international donors, governments, national and local institutions, including regulators and professional bodies work together in partnership to achieve long-lasting improvements, transparency and accountability in PFM,” he stressed.
The Director General of WAIFEM, Professor Akpan H. Ekpo, said the course was in response to the realisation that economic development and the fight against poverty and corruption could only be enhanced under an environment of good governance and that an efficient framework for transparent management of public finances was key.  
He acknowledged that as a strong PFM framework served as a catalyst for economic growth and development, so should sound PFM structures increase the demand for performance information, improve the efficiency of service delivery and bring accountability to government operations in delivering public goods and services to citizens.
He said poverty reduction was not merely a question of spending more, but instead, using existing resources more effectively, and that could be achieved through effective PFM systems which ensured accountability and efficiency in the management of public resources.
“PFM, thus, continues to play a critical role in contributing to economic stability, nation-building, growth and poverty reduction in our economies,” he said.
Some key topics expected to be covered at the course include; planning, budgeting and financial management in the public sector; fiscal performance and fiscal rules; fiscal policy and economic growth; and public expenditure programme.   
WAIFEM was established as a collaborative sub-regional capacity building organisation in July 1996 by the central banks of the five Anglophone countries of West Africa, namely, the Gambia, Ghana, Liberia, Nigeria and Sierra Leone.
Last year, the board admitted the Central Bank of the Republic of Guinea into WAIFEM.

 

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