Public Finance Act, 2004

2. Jn this Act; unless the contextotherwise requires-­ "accounting officer" means a person appointed as accol.inting officer under section nine; "Accountant-Geneiaj'.',means a person appointed asAccounlmrt­ Short title and comme­ ncement 1n1erpietanon General under section eight; "advance" means any recoverable sum of money issued pursuant to section twenty-seven; "aided project" means any proj eel which is partially financed through a loan, grant, donation or technical assistance and partially financed from public funds pursuant to section twenty-eight; "AppropriationAct"means an Act passed by Parliament authorising the Republic to incur expenditure of public moneys for specific purposes; "appropriations-in-aid" means revenues assigned to and collected by Ministries and departments which they are pemtltted by the Treasury to appropriate against expenditure voted by Parliament; Cap. I Cap.387 Cap. l 132 No. 15 of 2004) Public Finance "appropriate Minister"in relation to a ministry, Government institution, department, agency or statutory cmporation means the Minister to whom responsibility for the ministry, Government institution, department, agency or statutory corporation, as the case may be, is assigned; "Auditor-General"meanstheAuditor-Oeneralappointedpursuant "Audit Committee" means a committet: established under section to the Constitution; twelve; "bank account" means an account opened by Government at a bank into which public moneys"are deposited and drawn; "ConsolidatedFund"means the Consolidated Fund established • "Contingency Fund" means the Contingency Fund established under section thirteen; under section twenty-four; "controlling officer" means an officer designated as such pursuant to section seven; under section ten; "Controller of Internal Audit" means an officer appointed as such ''financial institution" shall have the meaning assigned to it in the Banking and Financial Services Act; "financial year"means the period of twelve months ending on, 31st December in any year; "general revenues" includes moneys accruing to the Republic by way of taxes, licences, import fees, fines, levies and charges, sale of Government property and shares, l oans, donations and grants raised from within or outside Zambia or any other income due \o the R epublic; "Government agency" means any unincorporated person or body of persons to which functions exercisable on behalf of the Republic, i�volving the use of public moneys or stores are delegated by or under any written law; "Government building" means any building owned or occupied or W1der the control of the Republic and used for Government purposes; "head of expenditure" means a head of expenditure shown in the estimates of revenue and expenditure in respect of a financial year approved by Parliament pursuant to the Constitution; "internal audit" means the process ofevaluating and assessing the efficiency and effectiveness of internal control systems; "internal auditor" meaµs an officer appointed as internal auditor under section eleven; "officer" means any public officer; "Privalisalior. R� venue.Account'' has the meaning assigned tu it Cap. J86 by �eciion nvn ofthe Privatisation Act; • Public Finance [No. 15 of . 2004 133 "PublicAccotmts" means all accounts required 1D1derthisAct to be kept by Ministries, Department� or statutocy corporations in respect of transactions involving assets or liabilities of the Republic; "public debt" means financial, material and other resources including guarantees acquired or borrowed by the Govermnent, Government agencies or local authorities in the interest of the Republic; · ' "Public fimds" means funds received by an officer by virtue of the officers employment and includes public moneys; ''public moneys"means moneys received by an officer in the eourseoftheoflicer'semploymentorany otherpersondirectly orindirectlyforthe purposeofGovernmentandincludes all stores, stamps, negotiable instruments, bonds, debentures, investments and other securities raised or received by or on behalfof, or for the benefit of:CtheRepublic; "public stores" means all chattels of whatever nature purchased or donated belonging to or i n possession o(, or under the control of, the Republic and includes plant, vehicles, machinecy and equipment; "statutory corporation" means any body corporate established by an Act of Parliament in which.the Government has a majority or controlling interest, and includes.a Government ' �gency; .. ' "SecretarytotheTreasury"meanstheSecretaryto·theTreasury, appointed under section six;"·· "Treasury Account" means the Treasury Account established under section thirteen; ''Treasury"means the office of Treasury established under section/our; and "working account" means an account established for the purposes defined in section twenty-five of the Act. PARTll MANAGEM£m: OF P�LIC FINANCES

3. (1) The Minister shall, s11bject to the provisions of the Constitution and this Act, have the management, supervision, control and direction of all matters relating to financial planning and the economic management of the R_epublic. Functions of the Minister Cap. I 134 No.15 of 2004] Public Finance . Establishment ofTreasury Functionsand Powers of Treasury (2) Without prejudice to the generality of subsection ( 1) the Minister shall be responsib.le for- (a) preseµting the annual estimates of revenue and expenditure and supplementary estimates to the National Assembly; (b} presenting, half yearly, budget performance reports to the National Assembly; and (c) presenting the annual audited financial report to the National Assembly

4. · (1) There is hereby established the office of the Treasury which shall consist of- (a) the Minister, who shall be the head of tlie Treasury; and (b) the ministry responsible for financial and fiscal matters·. (2) The Minister shall make policy and other decisions of the Treasury, except for those decisions taken under delegation or instnlction in terms ofsectio�six. (3) Powers of the Treasury shall be exercised by the Secretary to the Treasury referred to in section six or such other officer as may be authorised by the Secretary to the Treasury in writing. S. (!) The Treasury shall- (a) promote the Government's national fiscal policy; (b) co-ordinate the macr<H:conomic policy; ( c) manage the national budget preparation process; (d)exercisecontrol overtheimplementationoftheannualnational budget, including any supplementary budgets; ( e) facilitate the implementation of the Appropriation Act; (I) promote and enforce transparency and effective management in respect of revenue, expenditure, assets and liabilities of ministries, Government departments and statutory corporations; and (g). perform such other functions as niay be assigned to the Treasury by or under this Act. (2) The Treasury shall, for purposes of performing its functions under subsection (1 }- (a) prescribe uniform treasury norms and standards; (b}enforcetheprovisions ofthisActandanyprescnbedstandards of generally recognised accounting practices and uniform classification systems, in ministries, departments and statutory corporations; (c) monitor and assess compliance with this Act and any prescnbednorms and standards by ministries, departments and statutory corporations; (d) assist ministries, departments and statutory corporations in building their capacity for efficient, effective and transparent fmancial management; Public Finance [No.15 of 2004 135 ( e) investigate any system of financial management and inl'emal control in anyministly, department or statutory corporation; (j) take appropriate steps to redress any serious or persistent breach of this Act by any ministry, department or smtutory corpoi:ation; and (g) do all such things as are necessary or conducive to the performance ofits functions. (3) In the event of any dispute arising as to whether access to filly account, document, book or record is necessary for the exercise by the Treasury of any functions under this Act or any oilier written law, the dispute shall be referred to the Minister and fue Minister's decision shall be final. (4) Nothing in this section shall be construed as authorizingthe Treasury to issue ins1ructions which contravene the Constitution and Cap. I thisAct. · (5) The Secretary to the Treasury and any other officer authorised by fue Secretary to the Treasury shall be entitled to inspect andhave full access· to all accounts, documents, books and records of any Ministry, departm�t, or statutory corporation as is necessary for the exercise· of fue functions of the Treasury under this Act and shall be given all available information required wifu regard to the moneys and property specified in subsection (1).

6. (1) There shall be a Secretary to the Treasury who shall bea public officer and who shall be appointed by the President. · (2) Toe Secretary to the Treasury shall be the Chief Executive Officer offue Treasury and the Chief Controlling Officer of the Government and shall exercise such functions as provided in this Act or as may be ' authorised, in writing, by the Minister, (3) The Secretary to the Treas11ry shall be responsible for- (a) preparing annual estimates of revenue and expenditurepunmant to the provisions 9f�e Constitution; (b) preparing supplementary estimates of expenditure when the Secretary to the Treasury Cap. I situation so demands; (c) quarterly review oftheperfonnance of the budget and submitting a report thereof to the Minister; (d) preparing the annual consolidated �tatement of assets and liabilities including a �taternent of the public debt of the Republic as well as the consolidated revenue statement; (e) submitting the statements referred to in paragraph ( d) 1o fue Auditor General for examination and certification; (j) consolidation of all audited annual revenue 'statem...'"llts, appropriation accmmts and balance sheets for incorporation in the financial report to be laid before the National Assembly;, 136 No. 15 of 2004] Public Finance (g) releasing of funds from the Consolidated Fund for appropriation by controlling officers; (h) ensuring the irnplementatlon of the recommendations of the Parliamentary Commitu;e.on Public Accounts; (i) preparing the Trcasucy Minute inrespectofthe irnpl!:'lllentation of the recommendations of the Public Accounts Committee for submission to the .Nationa!Assembly; (j) the general management and_ administration , of the Consolidated Fund and other funds established under this Ac� · (k) orening, 'maintaining and closing accounting unit� in mihistries, depamnents and projects; (/} seconding accounting and audit staff to the units referred to inparagraph(k)andenstning that theyperform their duties in accordance with the provisions of this Act and any regulations issued under this Act; (m) ensuring that annual appropriation acc01mts are prepared and submitted promptly by controlling officers to the ·.Auditor-Generalfor certificationandthesameareinclilded in the financial report; (n) ensuring that the annual consolidated balance sheet of assets and liabilities of the Republic and consolidated revenue statements are promptly prepared by controlling officers for certificationbytheAuditor-General; (o) ensuring that consolidated.financial statement for statutory corporations are prepared in accordance with generally recogl)ised accinmting practice for �h financial year,· (p) compiling in accordance with international standards and publishing in the Gazette, financial statistics and aggregations concerning all spheres of Government; (q) maintaining compatible, effective, efficient and transparent financial management information system; (r) ensuring compliance, by officers with the provisions of this Act;and · · (s) providing advice and guidance· on all matters relating to accountiiig policy and genera°! � cial management; . (0 monitormg and inspecting the operations of the decentralised accounting units in ministries arid departments to ensure value for money; (u) providing a regulatory framework for sound financial management to accounting units; and (vJ carryi::!g vut such other fimctions as may be considered neces..sary for proper fmancial rnanagemt'lllof the Republic. Public Finance [No. 1 5 of 2004 137

7. (1) The Secretary to the Treasury shall designate in respect of Controlling each bead ofrevenue or expenditure 'provided for in any financial · · officers year, an officer who shall be a controlling officer. (2) The controlling officer shall be the Chief Accounting Officer in respect of all public moneys collected, received or disbursed and in respect of all public stores received, held or disposed of by or on behalf of the ministry or department or service for which such head is provided. (3) Every controlling officer shall lie charged with the duty of planning and controlling the expenditure of public funds under the controlling officer's control which shall encompass the following: (a) maintenance of an effective, efficient and transparent system of financial and risk management and internal control; (b) maintenance ofa system of internal audit under the control . and direction of an audit committee complying with and operating in accordance with this Act; (c)maintenanceofanappropriateprocurementandprovisioning system-in accordance with the Zambia National Tender Cap. 394 Board Act; (d) maintenance of a system for properly evaluating capital projects; (e) ensuring effective, efficient, economic and transparent nse of the resources under their control; (/) preventing unauthorised, irregular and wasteful expenditure and losses resulting from negligence and criminal conduct; {g) on disc�vering' any unauthorised, irregular or wasteful expenditure, referred to in paragraph(/) immediately report, in writing, particulars of the expenditure to the Secretary to the Treasury; (h) taking immediate, effective and appropriate discipliruuy steps against any officer in the ministry or department who contravenes or fails to comply with the provisions of this Act; and (Q not committing Government to expenditures in excess of money appropriated by Parliament (4) Every controlling officer shall, subject to the provisions of this Act or any other written law and in consultation with the Treasury-- (a) define in writing the extent to which the functions conferred or imposed upon such controlling officer may be exercised or performed by any accounting officer under the control of such controlling officer; and 138 No. 15 of 2004] Public Finance (b) give to every accounting officer referred to in paragraph (a) such directions as may be necessary for ihe proper 'exercise or performance of such functions by the accounting officer. (5) Every controlling officer shall, if so required by the Secretary to the Treasury, certify, subject to such explanation or qualification as may be considered necessary, the couectness of the accounts under the control of the controlling officer and the propriety of any charge shown therein. ( 6) Every controlling officer shall, in respect of each financial year, prepare for the examination and certification of the Auditor-General, a detailed statement ofrevenue and appropriation accounts for each head of expenditure under the controlling officer's control, giving adequate explanations for variations between estimated expenditure and actual expenditure, if any. (7) Upon certification bytheAuditor-General the controlling officer .shall submit forthwith a detailed statement of accounts referred to in subsection (6) to the Secretary to the Treasury for incorporation in the financial report required to be laid before the National Assembly pursuant to the provisions of the Constitution. (8) Every controlling officer shall promptly answer fully all audit queries and observations. (9) Every controlling officer shall collect, account and promptly remit to the Treasury all moneys due to the Government under the responsibility of the controlling officer.

8. (1) There shall be an Accountant-General appointed by the Public Service Commission who shall be the head of the accounting services of the Treasury and shall, subjecno the direction of the Secretary to the Treasury, be responsible for the compilation and management of the accounts and the custody·and safety of public money and public stores of the Goverrunent; and (2� The Accountant-General ;nay give such general or specific directions to accounting officers in relation to the performance of their functionsinaccordance wi1htheprovisions ofthisActoranyregulations that may be made under the Act. Cap. I Accountant­ General Appointment and duties of accounting officers

9. (1) There shall be appointed by the Public Service Commission, as public officers, such accounting officers as shall be necessary for the proper administration of this Act. (2) Subject to subsection (I) an accounting officer shall perform such duties, keep such books and render such accounts as may be prescribed, or as may be directed by the Secretary to the Treasury. Public Finance [No. 15 of 2004 139 . (3) An accollllling officer shall in the perfo1J11a11ce of duties under thisAct- (a) ensure that systems of financial management and i.n1ernal control established for a ministiy, department or statutory corporation are implemented within the area of responsibility of that officer; (b) promote the effective, efficient, economical and transparent use of financial and other resources within that officer's area of responsibility; (c) take effective and appropriate steps to prevent within'lhat officer's area of responsibility, any unauthorised expenditure, irregular and wasteful expenditure; ( d) manage and safeguard the assets of the Republic 1md management of the liabilities within that officer's area of responsibility; (/)'collect, receipt, retain in the accounting officer's custody, issue or pay public moneys whether such moneys are the property of the Republic or are entrusted to. the Republic or to the accounting officer in the officer's capacity either alone or jointly with any other officer orperson.

10. ( 1) There shall be a Controller offutema!Andit appointed by the Public Service Commission who shall 'ix: the head offutemal Audit and shall, in the performance of duties 1mder this Act be subject to the direction of the Secretary to the Treasury. · Internal Audit (2) Subject tosubsection (3), theControllerofinterna!Auditsball be responsible for the internal audit of every ministry, department and statutory corporation. (3) Notwithstanding the provisions of any other written law-and the existence ofinternal auditors in any statutory corporation, the Secretary to the Treasury shall have power to assign internal auditors to carry out special audits in such statutory corporation as the case may be.

11. (!) There shall be appointed by the Public Service Commission, as public officers, such internal auditors as shall be necessary for the proper administration of this Act. Appointment and powers ofintemal auditor (2) In the performance of their duties under this Act an internal auditor subject fo the direction of the controller ofintemalAudit-- (a) shall at all reasonable times have access to all �ccc;,unts, records, books, vouchers and other documents. r�ating to the·accounts' of any statutory corporation, ministry or department; 140 No. 15 of 2004) Public Finance Audit committees (b) may require from the accounting authority of a ministry, department or statutory corporation concerned such information and explanations as may be necessary; and (c) may investigate whether there are adequate measures and procedures for the proper application of sound economic, efficient and effective management of public funds. (3) An internal auditor shall submit reports to the controlling officer and the audit committee and such reports shall be copied to the Secretary to the Treasury and to the Auditor General.

12. (1) There shall be established for each ministry, department and statutory corporation an audit committee which shall perform such functions and exercise such powers in relation to internal audit as are imposed or conferred on th_e.committee by or under this Act. (2) An audit committee shall consist of five. members appointed by the Secretary to the Treasury as follows: ( a) two public officers; and (b) one representative from the Zambia Institute of ChafteFed Accountants; (c) one representative from the Law Association of Zambia; (d) one representative from any other relevant professional body; Provided that an audit committee for a statutory corporation shall be appointed by the Board of that statutory corporation and shall comprise five 111ernbers. (3) The functions of anAudit Committee shall be to-­ (a) receive reports from internal auditors; (b) evaluate and review audit policy; (b) evaluate� managementprocedures­ (i) regarding internal control; and (ii) regarding financial reporting. ( 4) The members of an audit committee shalJ be appointed for a term of three years and may be re-appointed for a further term of three years. (5) A member ofan audit committee shall be paid such 11llowance as the Minister may, by statutory instrument, prescribe. '· ( 6) An audit committee shall meet, for the transactior; ofbusiness, once in every three months at such places and at s1.icli times as the Chairperson may determine. (7) Subject to the other provisions of this Act an audit committee shall regulate its own procedure. : r , Public Finance (No. 15 of 2004 141 Consolidated Fimd Payments from Consolidated Fimd Cap. I Gross Revenues Appropriation PARTID CONTROL CF Pusuc FINANCES

13. (1) There shall be established a Consolidated Fund into which all general revenues and other public moneys accruing to the Treasury shall be credited. (2) The moneys payable to the Consolidated Fund under subsection (1) shall be deposited into the Treasury Account which shall be maintainoo at the Banlc of Zambia.

14. Payments from the Consolidated Fund shall not be made except in accordance with the provisions of the Constitution and this Act

15. (1) Subject to any express direction of the Secretary to the Treasuzy in respect of the operation of any Fund or WorkingAccount established pursuant to section twenty-five all moneys received by any accounting officer shall be deposited not later than the next business day following the day of receipt. (2) All moneys paid into a bank pursuant to sub-section (1) shall be deemed to be public moneys. (3) A controlling officer shall not invest public funds without the written approval of the Secretary to the Treasury and details of all invesbnents made from public funds shall be copied to the Auditor General . ( 4) Any officer who without reasonable cause fails to deposit moneys received as provided under subsection (1) corrµnits an offence and shall be liable on conviction to a fme not exceeding ten thousand penalty units or to imprisonment for a period not exceeding two years, or to both.

16. (1) WhentheArinualBudget hasbeenapproved by theNational Assembly, the Minister shall table an Appropriation Bill to cover the appropriation of funds voted under various heads or expenditure for the financial year. (2) Unless special provision to the contrary is made in any Appropriation Act, every appropriation by the National Assembly of public moneys for the service of any financial year shall lapse and cease to have any effect at the close of that year. (3) Where an Appropriation Act has not come into force at the commencement of any financial year, the President may authorise by provisional warrant the withdrawal of moneys from the Treasury account for the purpose of meeting expenditure n ecessary to carry on the services of the Government until the expiration of four months from the beginning of that financial year or tl1e coming into operation ofthatAct whichever is earlier. 142 No. 15 of 2004) Public Finance Releases of Funds Cap. I ( 4) Any swn so authorised under subsection (3) shall not exceed the sum specified for such service in the estimates presented for the current year or one third of the sums provided in the Appropriation and Supplementary AppropriationActs of the previous year, whichever is the lesser, and shall be set off against the amounts respectively provided in theAppropriationAct upon the same coming into operation.

17. (!) As soon as the.Appropriation Act has been passed by Parliament and the General Warrant has been issued by the President pursuant to the provisions of the Constitution, the Secretary to the Treasury shall- (d) cause to be released from the Treasury Account the amounts becoming payable during the ensuing month of statutory and Constitutional expenditure; and (b) release from the Treasury Account amounts not exceeding in · the whole the sums applied by Appropriation Acts for the supply of goods and services during the financial year. (2) Notwithstanding the issue ofa warrant, the Minister may limit or suspend expenditure, with or without cancellation of the warrant, if in the Minister's opinion financial exigencies or th e public interest so . require. (3) The Secretary totheTreasuryshallwithholdtherelease offunds to a controlling officer or an institution which-· (a) over �onunits Government to expenditures in excess of appropriated funds; or (b) does not submit to the Secretary to the Treasury and the Auditor-General returns including receipts and utilization . of grants or donations contrary to the provisions ·of this Act and accompanying regulations. Releases to be paid to bank accounts Banlc balances at end of financial year Banlc accounts in respect of public moneys

18. All releases.from the_ Treasury to the credit of Government bank accounts at the end of every financial year shall be deemed to be public moneys and shall be paid into the Consolidated Fund unless prior authority has been obtained from the Secretary io the Treasury for their retention in such accounts.

19. All unspent balances standing to the credit of Government · bank accounts at the end of every financial year shall be deemed to b_e public moneys and shall be paid into the Consolidated Fund unless prior authority has been obtained from the Secretary to the Treasury for their retention in such accounts.

20. (I) A person shall not open or close any account in respect of public moneys with any bank without the written approval of the Secretary to the Treasury. (2) A bank shall not permit an account in respect of public moneys to be opened or closed without the written approval of the Secretary to the Treasury. Public Finance [No. 15 of 2004 143 (3) A person shall not pennit a bank account in respect of public moneys to be overdrawn or arrange for an overdraft without the written approval of the Secretary to the Treasury. ( 4) A bank shall not pennit an overdraft to be incurred on any bankaecount in respect of public moneys without the written approval of the Secretary to the Treasury. (5) Allbanksmaintainingaecounts inrespectofpublicmoneys shall submit to the account holders and the Secretary to the Treasury such statements as may be required from time to time. (6) No transfer of public moneys shall be made between accounts at the same bank or different banks without the written approval of the Secretary to the Treasury. (7) Any person who contravenes the provisions ofsubsections (I) and (3) commits an offence and shall be liable to disciplinary action as provided under this Act. (8) Any contravention, by a bank, of theprovisions of subsections (2) or ( 4) may result in all accounts containing public moneys in that bank being closed and transferred to other banks. · (9) The Secretary to the Treasury may delegate functions under this seetion to the Accountant General.

21. All interest accrued on bank accounts and other investments Interest on shall constitute general revenue and shall be paid into the Treasury bank accounts Account. Investments

22. (1) Moneys standing to the credit of the Republic in the TreasuryAccountorwithanyotherbankaccountandnotimmediately required for any other purpose may be authorised to be invested by the Secretary to the Treasurywith·a bank at call or subject to notice not exceeding twelve months or in any of the investments authorised by law for the investment of trustee funds. (2) Where any investment under subsection (1) is realised the proceeds shall be paid by the Treasury to the credit of the Treasury Account. (3) All_ investments made under this section shall form part of the Consolidated Fund. 23, (l )- Any deposit of money, other than public moneys raised or Deposits received which may be deposited with any public officer authorised to receive such deposit, shall not form part of the Consolidated Fund and shall not, except as provided in subsections (2), (3) and ( 4), be applied for any public purposes. (2) Any interest accruing on a deposit, shall not be credited to the Consolidated Fund. 144 No. IS of 2004] Public Finance Contingency Fund (3) Subject t o theother provisions of this section, the Secretary to the Treasury may administer a deposit in such manner as the Secretary to the Treasury thinks fit and may, in any appropriate case, refund a deposit or any part of it to any person entitled to it. (4) A deposit which is unclaimed for over a year shall, subject to any other enactment, cease to be a deposit and accrue to the general revenues proyided that if a genuine claim is received for refund of the deposit, such refund shall be made from the general revenues. (5) Any deposit arising from seizures of money and property sha!l not constitute part of general revenues until such cases are disposed off by courts of iaw or any otherrelevant authorities.

24. (!) There shall be established a Contingency Fund for the pmpose of enabling advances to be made to meet urgent and unforeseen expenditure in accordance with subsection (2). (2) Where the Minister is of the opinion that it is necessary to incur expenditure on any service- (a) which, being a new service, is notprovidedfor inthe estimates ofa particular ministry; _or (b) which will result in an excess of the sum provided for that service in the estimates, and that expenditure cannot, without injury to the public service, be postponed until provision, or adequate provision, as the case may be, is made by Parliament; the Min_ister may, by warrant under the President's ,hand, and in anticipation of approval of supplementary provision being given in Parliament, authorise an advance from the Contingency Fund of the amount required. (3) The Secretary to the Treasury shall issue instructions from time to time for the operation of the Fund. Funds and working accounts

25. (1) W here the Secretary to the Treasury considers it expedient to do so, the Secretary to the Treasury may establish ftmds or working accounts for the purpose of- . (a) the purchase of stores, equipment or livestock for subsequent use or resale; (b) services rendered or to be rendered by any individual and it is desirable to recover the cost of such services from such other department or. individual; or (c) the making of grants or ioans for purposes specified in the estimates of expenditure, or where moneys are made available from any other source for any of the above stated purposes. Public Fina!'ce (No. JS of 2004 14S (2) Each fund or working account established under subsection (1) "shall be credited with its receipts, earnings and _accruals and anymimeys -· (a}appropriatedbyParliamcntforthcpurposesforwhichitwas established; or (b) which otherwise may be· made available for the fund or working account; . may be expended from the fund or working account on the purposes forwhichitwasestablished. . ' . • · · · · · · ·. · .• ' •-•>· (3) The Secretary.to the Treasury may give•directions as to the maimer in which_ any fund or working account established under subsection (1) may be operated. . · ( 4) Except where the Secretaty to the Treasury othezwise directs, the receipts, earnings or accruals of any funds or worldng accounts . ' established pursuant to tliis section or any balBIJ'"" ,;tanding to the credit ofilllY such furid orworlcingaccountattheclose ofthefinancialycar shall not be paid'futo the Consolidated Fund but shall be retained in the fund or working ac�o�t and such.fund or working account shall · ·iiot be closed. .. (5) •'Where the Secretary totheTreasury is satisfied that a fund or . . . . �<lrl!!!JJ. �l!Il!.i;stajl� 'D.1':!"J.' ��on (1) has fulfilled its p� or is not bcing,opcrated _for the purpose for which it was established, the Sccrctary to the Treasury may direct that the fimd or. wqr�g account,1>!: closed and that the.balance outstanding in such · fund or working acc01mt be paid into :the Treasury AcC01UJt for the credit of general revenues . . ,26.' H) . Upon the connnencement ofthisAct; the Minister shall, - bystatutoryinstrument,provideforbalancesstan<!ingto_thecredit of iheTrmsuzy.Accounttogetherwilhallothersmnsstandingtothecredit ofanyotlt«publicaccountoftheGovemmcniofZJunbia whichshall form part of the Consolidated Fwid. . . . (2) Nothing in this sectiql! shall allJllY to any sums of money held · iµ �t by, or under thc'c:onlrol of orly court or officer ofa court, the phblic trustee, the.Adinini��-Oerieral or the Official Rccdveror to any sums of�ey'b.eid in trust by any other officer_fot purposes otherthantl)C pilipoSes ofthe Govemment · . (3) Allmv•etibheldbytheT�orbyany otherpersonon bebi/]f of the Republic on the date Oii which this Act comes into operation shall.if the sanie are not already held on account of the funds held in theConsolidated Fuiid be'deenied to have been mad,;: c,u_t of mo,n_eys from the Consolidated Fund. : : Existing funds 146 No. 15 of 2004) Public Finance Recoverable advances

27. (I) The Secretary to the Treasury may at anytime authorise the issue, .from the Consolidated Fund, of sums of money which may be used for the following purposes: (a) to meet payments due for public services which for reasons the Secretary to the Treasury considers sufficient, cannot presently be charged to any vote; (b) to provide imprest accounts for the use of departments or individuals; (c) to make payments for, and on behalf of another Government or person at the request of such Government or person: Provided that the amounts so paid shall be recoverable from such other Government or person; (d) to make provision for any payment which has been made under any head of expenditure and which has been disallowed as a charge against the head of expenditure in the approved estimates; (e) to advance public moneys to any person where such advance is in the public interest and is- (i) repayable at some future date; · • · . (ii) subsequently chargeable· against any head of • expenditure; or (iii) in part repayable as provided by sub-paragraph (iJ and in part chargeable as provided by sub­ paragraph (ii); andforsuchpmposesseparaterecords(inthisActreferredtoas'.'advances accounts'') shall be maintained: Provided that any such advance shall not be made in anticipation of an.appropriation by the NationalAssembly. (2) Except where the i''i�cretary to the Treasury otherwise directs, any balance outstanding and unpaid in any advance account at the close of any fmancial year shall not be charged to any expenditure vote. Aided projects

28. (1) All moneys received by way ofloans, grants, and donations shall constitute public moneys·and shall be paid into the Treasury Account for the credit of the Consoiidatetl Fund, . . · (2) The Secretary to the Treasury shall make pro�onin.the liudget , ,., ,\ estimates for loans, grants and donations receivable in casli: (3) Where the quantum of the loan, grant or donation referred to in subsection (2) is not known a provision shall be included in the estimates and when the quantum becomes known a.supplementary estimate shall be raised for the amount involved. Public Finance INo. 15 oi .W04 .i47 (4) ·Where loans, grants and donations are receivable in kind, the value of such donations shall be deterrruned and included in the estimates and reflected a� expenditure in the financial ye&r. (5) Moneys'recdved'foispecified priijetts which have been paid into the Treasury Account shall be released when required to the appropriate project bank accowit. (6) The Secretary to the Treasury shall- (a) cause separate and proper books and records to be kept and maintained in respect of all projects and fOl' appropriate audited fll13Ilcial statements to be included in thecfinancial report; and (b) ensure that whenever projects are completed, the project assets including buildings, plant, vehicles,fumiture,fittings and equipment are properly recorded and handed over to Government orofuer appropriate authorities within the time frame provided for in the agreement. Losses of money orstores (7) .Where.no time frame is provided for project assets shall be handed over.within three months from the date of the closure of the project :

1 . (8) Intheabsencebfanyinstnictions'to thecontraryanywiexpended balance standing to the credit of any project accowit shall be paid into the Treasury Account forfiib'.credit o(the Consolidated Fund. , . ! i 1 . Y .·. · • . - . ., . . : . . . . . . -; · ·.:_. · ,·. ·,: · ' :,

29. (1) Where- (a) any public money� have been lost or misappropriated; or (b) any public s tores ' have .l;>een lost, d amaged or · misappropriated, then subjectto the express provisions of this or any other written law,· such loss may, with the approval of the S ecretary to the Treasury, be charged againstmoneys appropriatedbyParliamentforthepurpose. (2) The Secretary to the Treasury shall - (a) have power W:-- (i) write off deficits of public moneys and the value of deficient, damaged, condemned, unserviceable or obsolete public stores; (ii) abandon irrecoverable amounts of revenue, debts and overpayments except where; by any other Act, such power is expressly conferred upon any other public officer in'tespectof any specified class of public revenue, clebts or overpayments; · (iii) write off wmsed accowitable forms including receipt forms which have been lost or damaged on being satisfied that they have not been fraudulently used; or 148 No. 1S of 2004) Public Finance . �� . . (iv) delegate in writing to l!llY officc:;r anypowera which · the Secretary to the Treasury _is authorised to exercise Wider paragraphs (i), (ii)and (iii) setting · out in each case the limits up to which such powers may be exercised; and · · . Failure by controlling officer to perform,· (b) cause details of all write-offs and.aband!)IIDlents effected pursuant to paragraph (a) to be published iii the annual financial report and Gazette. · (3) Where anypublic storesarenolongerrequn:edthe Secretaryto the Treasury, may,-on thereconnnendation of the Board of Survey .direl)t,lhe<lisposal thereofby destruction or sale by public_ auction, or public tenderandpaymentoftbeproceeds ofsaleifany intothegeneral revenues of the Republic. PARTIV SURCHARGE

30. (1) Subject to the other provisions of this Part, where a c;ontrolling officer fails to perform any financial duties assigned un,der this Act and such failure results in aloss,;if public moneys. a failuni to · collectrevenue duetotheGovemment orinwasfoful(lT wmei:essmj expeoditureofpublicmo�byaministryordepartment, theS¢cretiry to the Treasury shall- .•· . · (a)imposeon such controlling oflica:asun:��to · the loss, wasteful or nugatory.eiqienditure mciirred by .Gov=ment; and . (bJri:commendtotheSecretarytotheCabinet�linaryaction to be taken against the defaulting controllingrifficerwhich · may include -. . · · · · . , .. . · . . (i)an..pp,Oj>li .. te surcbarge; :(ii) a demotion of the controlling officer or both; cir (ili) such other disciplinary action as maybe decided bytheappropriatedisciplinaryauthority . . (2) In additio11 to the disi:iplituiry action referred to in subsection (I) the Secretary to the1reasuty may recommend to the Minister to have the controlling officer replaced: Provided that .before such a. recommendation is made the .controllingofficersba)Jbegiveii/lllopportunitytoµcuipate . oneselfofthe charge.' ' · · . . . . . Surcharge

31. (1) Jf througbany act of :wilful default or gross neglect of duty any officer- . (a) whencver itis�h officer's dutytocollectanymoneysdue ilild, owjng to the Government, the officer fails to collect the same and by reason of such failure such moneys C811IlOt � collected; Public Finance [No. IS.of 2004 149 . ,(b) makes; causes or permits any improper payment of public moneys, or any payment of such public moneys which is not duly authorised· or for which no funds have been provided; (c) causes or permits any loss or deficiency in respect of any · public moneys under the officer's control and for wbich he is botmd to account; (d) causes or permits any damage to or destruction or loss of any public stores; (e) causes or permits any personal injury or damage to property in circumstances which give rise to liability of the Republic to third J)ersons in respect of such injury or damage; (f) causes or permits damage to or loss of any Govern.men! building, or any fixtures, fittings or furniture therein; or (g) makes improper decisions which result in loss of public · moneys or property; that officer shall be liable to the Government in such amount in respect of such failure to collect, improperpayment, loss, deficiency, damage or destruction, as the case may be, as may be determined pllISUllilt to subsection ( 4) and, subject to the provisions of this section, any liability so determined may be recovered at the suit of the Attorney-General in that behalf. (2} If the Secretary to the Treasury is of the opinion that loss has been suffered by the Government because of any act or wilful default or gross neglect of duty of any officer, as referred to in subsection G ), the Secretary to the. Treasury may assess, as attnl,utable to such act, an amount, beingnot greater than the actual loss suffered, and shall forward to the officer, a notice in writing, of the assessment of claiin and of the amount thereof. (3) Within twenty-<me days after the receipt by the officer from the Secretary to the Treasury of a notice of assessment of claim pursuant to subsectiOI) (2), the officer may make representationsto the Secretary to the Treasury, in writing, with respect to- (a) the officer's liability under subsection ( l ); or (b) the ainounfassessed pursuant to subsection (2) attnbutable to the officer's act of wilful default or gross neglect of duty; and the Secre� to the Treasury shall give due consideration to any representation so made by the officer. (4) If- ·. ( a) after the expiration of twenty-one days from the date upon which notice ofassessment of claim was forwarded to lhe officer, pursuant to subsection (2), the Secretary to the Treesury receives no · representation from the officer pursuant to subsection (3); or 150 No. 15 of 2004] Public Finance (b) after giving due considerationlo any representation made by the officer pursuant to �bsection (3),-the Secretary to the Treasury is of the opinion that the officer should be held liable to the Government as stated in the notice of assessment of claim; the Secretary to the Treasury may determine the amount of the liabilityofthe officerandthe amount assessedpursuanttosubsection (2), or, if the Secretary to the Treasury deems fit, at a lesser amount, and shall make demand in writing upon the officer for payment of the amount so determined. (5) If, after giving due consideration to the representations made by the officer pursuant to subsection (3), the Secretary to the Treasury is of the opinion that the officer did not commit any act of wilful default or gross neglect of.duty in respect of the matters grounding the assessment of claim made pursuant to subsection (2), the Secretary to the Treasury shall cancel the assessment of claim and notify the officer, in writing, of the cancellation. ( 6) Upon receipt of the demand for payment referred to in subsection ( 4), the officer may, in writing- (a) admit liability in the sum stated in the demand for payment; and (b) consent to the recovery of the admitted or agreed sum by equal monthly instahnents by way of deduction from the salary or pension of the officer in a stated monthly sum, to be fixed by the Secretary to the Treasury, not exceeding one-fourth of the monthly salary or pension, as the case may be, of the officer. (7) Where any officer has admitted liability in any admitted or agreed sum and consented to the recovery ofsuch sum as provided by subsection (6), and the officer's employment by the Republic is terminated, whether by resignation, dismissal, death or otherwise, before the entire sum admitted or agreed has been fully recovered the admission of liability shall be deemed to be, and shall have effect as a consent to judgement in favour of the Republic in the amount of any outstanding balanc.e of the admitted or agreed sum remaining unpaid at the date of the termination.of the officer's employment, and such consent to judgement shall be effective in any proceedings brought in respect of the liability against the officer or the officers's legal representatives, as the case may_be. (8) If, after the expiration often days after receipt of the demand for payment referred to in subsection ( 4), the officer has failed to admit liability pursuant to subsection ( 6), the Attorney-General may institute proceedings for the recovery of the amount so ·demanded. Public Finance [No. 1S of 2004 151 Interim and final order of surcharge .. . · (9) Any1rungdonepursuanttothissection shallbewithoutprejudice _t�, the ����h��.�f �i!iciplinai-y actio? over the officer by any lawful authonty m respect of any act of wilful default or gross neglect of duty. \ .. ".32; :_. (1) In any action brought for the recovery from any officer of any liability to the Government under the provisions of section thirty­ one, the court may, at any time after the action is brought, gniilt, on the ex parte application of the Attorney-General, an interim order of surcharge pursuant to subsections (2) and(3). (2) An application for an interim order of surcharge pursuant to subsection ( 1) shall be grounded upon the affidavit of the Secretary to the Treasury setting out-· (a) the facts upon which the claim is founded and exhibiting .copies of the notice of assessment of claim and'i:lemand for payment, issued and forwarded to the officer pursuant to subsections (2) and (3), respectively, of section thirty­ one; and (b) disclose the official status of the officer, the officer's length of service, the officer's monthly salary, and how Jong the officer was employed in the position the officer held at the time when the alleged Joss, incorrect, pay ment deficiency . or damage occurred. (3) An interi� 9rder of surcharge niade pursuant to this section shall empower the Secretary to the Treasury to cause to be deducted from the salary of the officer a slated sum each mon th , not exceeding one-fourth of the monthly salary of the officer, and, pending the final detennination of the action, to apply the deducted sums towaids the liquidation of the amount claimed. (4) If any action, in which an interim order of surcharge was obtained pursuant to this section, is discontinued, or is dismissed by th e court, the interim order shall, upon the filing of the notice of . discontinuance, or upon the judgement of dismissal becoming final, as the case may be, cease to have any force or effect, and the Secretary to the Treasury shall, within twenty-one days thereafter, cause such surns'as had been deducted from the monthly salary of the officer on the authority of the interim order to be refunded to the officer in full. ( 5) Where in any action, in which an interim order of surcharge was obtained pursuant to this section,judgement is decreed in the . amount claimed, orin any lesser amount, and costs, the court may, on the_ application of the Attorney-General, make an order of surcharge in respect of the balance due on the judgement after deducting from the judgement all sums µp to the time of the judgement deducted from the monthly s�lary of the officer pirrsuant to the interim order. 152 No. 15 of 2004) Public Finance . . . ' . .,. , Attachment of propertyof officer as security ( 6) Any order of surcharge made pursuant to this subsection shall be in such terms as the court may consider fit and shall empower . the Secretary to the Treasury to deduct from the salary of the • judgement debtor a stated sum each month, not exceeding one� fourth of the monthly salary of the judgement debtor, until all sums outstanding on the authority of the judgement and costs havt,! been ��� . (7) If on any action judgement is decreed in an amount which together with any costs allowed is less than the total sum de(lucted pursuant to an interim order of surcharge made under this section, the Secretary to the Treasury shall, within twenty-one days after such judgement becomes final, cause to be refunded to the judgement debtor any sum deducted in excess of the amount of the judgement and costs. · - (8) , Where a final order for surcharge made pursuant to this section is in f9rce in respect of any officer, and the employment of the officer by the Republic is terminated, whether by resignation, dismissal, death or ottienyise; the Secretary to the Treasury may, against any moneys payable to the officer by the Government, set . offanybalance:remamingunpaid onthe authorityofthejudgemcnt in respect of which the surcharge order was made. . . (9) .Any judgement decreed pursuant to this sectiOhshall be without prejudice to the exercise of disciplinary action over such officer by any lawful autoority in respect of the act, wilful default or gross neglect of duty giving rise to the action in which suchj udgement was decreed

33. (1) Where an officer steals or converts to the officer's own use any public funds or any public stores and an action is brought · against such officer at the suit of the Attorney-General for the recovery o f such moneys, property or stores or for damages for their loss, the Attorney-General may apply_a parte to the court, either at the time of the institution of the action, or at any time thereafter until final judgement, for an order directing that any property belonging to the officer shall be attached until the further order of th e court, and such order of attachm!!llt shall be executed according to its tenor. (2) Where the property sought to be attached pursuant to subsection (1) is- (a) land, or any interest in land, the application shall contain a description of the land sufficient to identify the same for the purposes of registratioii of the order directing the attachment in the Lands Registry pursuant to subsection ( 4), together with a statement of the interest cf the officer therein required 'lo be attached; • Public Finance [No. 15 of 2004 153 (b) movable personal property, the application shaJI contain a description of the property required to be attached, the estimated value thereof so far as can reasonably be ascertained, and the place where the property may be found; (c) a bank or building society account, the application shaJI contain the name of the bank or building society and the address of the office or branch thereofatwhich the account is believed to be kept and, if the account is not in the name of the officer, the name in which it is kept and a statement of any reason why such account is believed to be the property of the officer; (d) an account in any other financial institution, the application shall contain the name under which such acci:mnt is kept, and if the account is not in the name of the officer, the name in which it is kept and a stateinent of any reason why such account is believed to be the property of the officer; (e) a debt owing to the officer, the application shall contain the name and address of the debtor; and (/) shares in a company, the application:shall contain the name of the company and the address ofits registered office in Z.ambia. (3) In any order directing the attachment of property pursuant to subsection (1), the court may direct the attachment of the whole of the property specified pursuant to subsection (2) or such portion thereof as the court considers sufficient to satisfy any judgement which may be passed in the action. (4) Where the property directed to be attached pursuant to this section is land or an interest in land, such attachment shall be effected by lodging a certified copy of the order directing the attachment in the Registry of Lands and Deeds, for entry in the register, and any such attachment so effected shall bein the nature ofacaveatbytheAttomey­ General in respect of the lands attached, and the provisions of Part VI of the Lands and Deeds Registry Act shaJI apply, with necessary Cap. 185 modification, to such attachment. (5) Where the action brought is one for the return of specific goods claimed to be public stores unlawfully detained by an officer, the order made pursuant to subsection ( 1) may provide that the goods, upon being attached pursuant to the court order, be delivered to the GoYernment to be retained by the Government until the further order of the court: Provided that no such delivery shall be ordered pursuant to this subsection unless the Attorney-General gives an under-taking on behalf of the Government that the goods shali be returned to the officer in the event of the dismissal of the action. • 154 No. 15 of 2004] Public Finance (6) Any attachments made pursuant to this section shall not affect the rights in the attached property of persons who are not parties to the action, and in the event of any claim being preferred to the attached property, the claim shall be investigated in the manner prescribed for the investigation of claims to property attached in execution of a judgement of the court. (7) In all cases ofattachment pursuant to this section, the Court shall, at any time, remove or discharge the order upon the officer furnishing sufficient security to satisfy any judgement whlch may be ordered against the officer in the action together with security for the costs of the attachment. (&)Where in any action in which property is attached pursuant to subsection (1) fmal judgem<ll'!tis decreed - . (a)•in favour of the officer, the court shall remove the attachment, and order, where necessary, the restoration of the property to the officer; (b) in favour of the Attorney-General, the court shall issue execution against the attached property to the extent of the judgement and costs, and upon such execution being effected the attachment shall cease to have any further force or effect. (9) The Attorney-General may at any time, in the prescribed form, consent to the removal from attachment, pursuant to this section, of the whole or any part of any property so attached, and such consent shall have effect according to its tenor. ( I 0) Where the order directing attachment has been registered in respect of any lands pursuant to subsection ( 4) any consent to the removal of such attachment pursuant to subsection (9} in respect of such lands or any part thereof shall be registered and shall have effect as a withdrawal pro ta11to of the attachment of the lands. (11) The provisions ofany Act or rule oflaw suspending any civil remedy in respect of the subject-matter of any criminal proceedings pending the determination of such proceedings shall not apply so as to limit or suspend the obtaining of an order of attachment pursuant to this section. PARTY CONTROL OF STATUTORY CORPORATIONS .

34. (I) Notwithstanding the provisions ofany other written law, the Secretary to the Treasury shall ensure that Government is represented on all boards of directors of statutory corporations. (2) The Board of directors of any statutory corporation referred to in subsection (!) shall furnish the Secretary to the Treasury at the end of every financial year with reports covering the operations of such statuto,y corporations and the corporation's fi.'lllllcial affairs. Representation on statutory corporations • Public Finance (No. 15 of 2004 155

35. Before any grant is released to a statutory corporation the Secretary to the Treasury shall, in writing, set conditions for the appropriation of the grant and the statutory corporation shall comply with the conditions: Conditions fur approriation of grants Provided that if the statutory corporation fails to comply with the conditions, the Secretary to the Treasury may suspend release of further grants to the statutory corporation tn1til such time as the conditions are complied with.

36. The Secretary to the Treasury shall ensure that grants released to statutory corporations are appropriated for the purposes for which they are released.

37. (I) Where on the creation ofa statutory corporation, it becomes necessary for Government assets to be vested in su�h statutory corporation, the Secretary to the Treasury shall arrange for such assets to be valued by a qualified valuer and the value of such assets shall be reckoned as Government's contribution to the accumulated fimd of the statutory corporation. (2) On the transfer ofassets referred to in subsection (I), the value of the assets transferred shall be.reflected in·the fmandal report.

38. (1) The Secretary to the Treasury shall cause to be maintained a record of all moneys invested in statutory corporations and ensure that such statutory corporations are managed efficiently so that they yield reasonable dividends to Government. (2) -For pmposes of subsection (!), the chief executive officer of the statutory corporation shall ensure that financial statements including management reports and returns are submitted to the Secretary to the Treasury on a regular basis. Grants paid to statutory corporations Transfer of assets to statutory corporations Records of Investments in statutory corpora.dons · tobe maintained

39. (I) If at any time it becomes apparent to the Secretary to the Treasury that the operations ofa statutory corporation are not being carried out in an efficient manner, the.Secretary to the Treasury shall bringlhismatter tothenotice oftheBoard ofsuch statutorycorporation. lnefficfont operations of statutory corporations (2) If in spite of bringing the matter to the notice of the Board there is no noticeable improvement in the operations of the statutory corporation, the Secretary to the Treasury shall refer the matter to the Minister and the Minister shall take such action as the Minister may consider necessary.

40. (!) The chief executive officer ofa statutory corporation shall take such steps as are necessary to ensure that the assets of the statutory corporation arc protected against misuse or theft. Protection of assets of statutory a:irporations 156 No. 15 of 2004) Public Finance Protection of Government interest oil . privatisation of statutory corporation Recovery of outstanding moneys Cap.386 Dissolution of statutory corporation - 41. Notwithstandingtheprovisionsofanyotherwritten law, the Secretacy to the Treasury shall ensure that on the privatisation ofa statutory corporation, Government's interests in that statutory corporation are adequa�ly protected and that the proceeds of the sale of the statutory corporation are paid into the Privatisation Revenue Account

42. Where moneys are owing from the sale of a statutory corporation to private investors under the Privatisation Act, the chief. executive officer of the Zambia Privatisation Agency shall ensure that such moneys are recovered and credited to the Privatisation Revenue Account.

43. ( 1) Subject to the provisions of any other written law, in the event of the dissolution ofa statutory corporation which has been receiving grants from Government and where the Board of such statutory corporation has been dissolved the Secretacy to the Treasury shall constitute a Committee consisting ofnot less than three members two of whom shall be Government officers to wind up the affairs of such statutory corporation. r (2) The committee appointed under subsection (I) shall ensure that- (a) the assets of such statutory corporation are properly inventorised, valued and disposed of subject to the instructions of the Secretacy to the Treasury; (b) ensure that all debts due to such statutory corporation are promptly recovered; (c) ensure that the claims of all creditors including employees and tax liabilities, if any, are proved and settled in full; ( d) any balance remaining after the conclusion of transactions referred .to in· paragraphs (b) and (c) is credited to Government revenue; and (e) any asset considered strategic by Government in the public interest reverts to the ownership of the Government at no cost to Government. PARTVI AUDIT

44. (1) Notwithstanding anything to the contrary contained in any written Jaw establishing a statutory corporation with respect to the appointment of an auditor , it shall be the duty of the Auditor• General, at such times as the Auditor-General considers fit, to audit in accordance with the provisions of the Public Audit Act the accounts ofany statutory corporation. (2) In the performance of duty under subsection (I), the Auditor General and any public officer, agent or specialist consultant authorised by the Auditor General shall have access to all the books, records, returr>..s, reports and other documenw relating to the accounts of a statu.oiy corporation as the Auditor General considers necessary. Auditor• Gcnernl to audit accounts of statutory corporations Cap. 378 • • Publi c Finance fNo. 15 of 2004 157

45. ( 1) The Auditor-General shall carry out performance and specialised audits in respect ofa ministry, Government department or statutory corporation as the Auditor General may consider necessary and shall prepare a report on the audit for submission to the National Assembly. (2) In theperfmmanceof duties underthisPart, theAuditorGenera! and any public officer, agent or specialist consultant authorised by the Auditor General shall have- Perfonnance audit (a) access to all books, records, returns, reports and other documents relating to the accounts of any statutory corporation, Government department or institution under • audit examination or inspection; (b) access at any reasonable time of the day to the premises of any statutory corporation, Government department or institution under audit examination orinspection; . (c) power to call for any relevant information froin persons respons1ble for the financial administration o( any statutory corporation, Government department or institution under audit examination or inspection. (3) Notwithstanding anything contained in subsec.tion (2) and subject to subsection (4) the Auditor-General shall not autliorise any agentor specialist consultant- (a) to have access to any books, records, returns, reports or other documents, or to c:mter upon any premises, of any cornpoh�t of the Defence Force or the 2.ambia Security Intelligence Service; or (b) to have access to _any books, records, returns, reports or other docinnents, or to enter upon any premises other than those mentioned in paragraph (a),_ if such access or entry is likely to- . (i) prejudice the security, defence or international relations of the Republic or the investigation or detection of offences; or (ii) involve.the disclosure of any matters or deliberation� ofa secret o� confidential nature of the Cabinet or any su!H:ornrnittee of the Cabin�t the investigation or detetion of offences; or involve the disclosure of any matters or deliberations of a secret or confidential nature ·oi the Cabinet.or any subcommitte of the Cabinet. 158 No. 15 of 2004) (4) Notwiths1anding f.!lb/ic _Finance . snlisection (3), where the circumstances of an audit so require the Auditor-General may, after obtaining the written cohs·ent of the President, authorise an agent or specialist consultant- (aj to have access to the books, records, return, reports or other documents, or to enter upon any premises, of any component of the Defence Force or the Zambia Security Intelligence Se,vices; or (b) to have access to the books, records, returns reports or other documents, or to enter upon any premises other than those mentioned in paragraph (a). • • Auditor General maysecure services of agents or specialist consultmts 0Jp378

46. The Auditor General may in accordance with the provisions of section six ·of the PublicAuditAct, secure the services of agents or specialist consultants to assist the Auditor­ General in the execution of duties under this Act. . Unauthodsed use of public money Consultancy services Cap.394 Restrictions regarding agreements PARTVTI GENERAL PROVISIONS

47. An officer or other person shall not use any public moneys or public stores or other assets for any purpose not authorised by this Act or by any other written law. 48; (I) W here it is considered expedient the Secretary to the Treasury may in accordance with the provisions of the Zambia National Tender Board Act engage the services of consultants to advise on matters not expressly provided for.in this Act. (2) An officer shall not contractor engage a consultant to provide accounting and allied services without the written authority of the Secretary to the Treasury. (3) Any officer who contravenes the provisions of subsection (2) commits an offence.

49. (1) Except where express provision has been made in any other written law for the time being in force, no person representing a ministry, department or statutory corporation shall enter into an agreement or arrangement with any other person, organisation or Government committing the Government to receive or repay moneys pursuant t.o such agreement or arrangement unless s11ch agreement or arrangement is authorised in writing by the Minister. (2) Any person who contravenes the provisions of subsection {!) commits an offence and shall be liable on conviction to a fine not exxeding two thousand penalty writs or to imprisonment for a term not exceeding two years. or to both. Public Finance ., (No. 15 of -2004 159

50. (I) Where the President abolishes a ministry or departmen_t in accordance with the Constitution, the Secretary to the TreaSUI)' shall appoint a committee to examine and value the assets of such ministry or department and make recommendations on the disposal of such assets. (2) The Secretary to the Treasury may, in,-.(!I)Sultation with the MinisterrespoDSible for works and supply, distnbute the assets referred to in subsection (1) among other ministries or departments or seil the assets by public auction or tender. Abolition of Government Departments Cap. I

51. Any person who commits an offence underthisAct forwhich General · pcoal ty no penalty is provided shall be liable, upon conviction, in the case of a first offence, to a fme not exceeding one thousand penalty units or to imprisonment for a term not exceeding two years and, in the case of a second or subsequent offence, to a fme not exceeding three thousand penalty units or to imprisonment for a term not exceeding four years, or to both.

52. (1) The Minister may make such regulations as the Minister Regulations may consider necessary for the proper carrying out of the provisions of this Act. (2) Without prejudice to the generality of subsection (1) regulations made underthissectionmayprovide for- (a) the safety, economy and investment of public moneys and property; _ (b) the collection, receipt, custody, issue,. expenditure, due accounting for, care and management of all public moneys including donor funds and public stores; except where and to the extent otherwise expressly provided in that behalf by any written law; (c) the keeping ofrecords, the examination, inspection and checking of all receipts and payments and the keeping of all necessary books and accounts; ( <V the forms of accounts, books, records and other documents required pursuant to this Act; (e) the purchase, safe custody, issue, sale or other disposal or writing-off of public stores and the proper accounting for, and stock-taking of, such public stores; (/) the preparation and form of estimates of the revenues and · expenditure of_the Republic; · (g) the authorisation ofrates of payment of public funds for specific purposes where such rates of payment are not pro\-ided by this or any other written law; • ' 160 No. 15 of 2004] Public Finance {h) the making of advances to public officers and other persons and the rates and limits of such advances and the rates of interest thereon; (i) the refund to persons of moneys deducted or property seized from them in error; 0) the appointment of persons other than officers as financial or purchasing agents of the Republic; (le) the prompt release of funds for public expenditure; (I) the proper management of the Consolidated Fund; (m} the control and management of investments in statutory corporations; and (n) any other activities related to the foregoing. Savings and transitional Repeal of Cnp. 347

53. (I) ThepersonwhowasservingasSecretal)'toth.eTn,aswy shall upon the commencement of this Act continue t o hold office as if appointed under sectionsixof thisAct. (2) The person who was serving as Accountant-General shall upon the· commencement of this Act continue to hold office as if appointed under section eight of this Act. (3) The person who was serving as Controller of Internal Audit shall upon the commencement of this Act continue to hold office as if appointed under section ten of this Act.

54. The Finance_(Control and Management) Act, 1969 is hereby repealed. • I •