Katsonga faulted on plans to abolish Account No.1
People’s Progressive Movement (PPM) presidential candidate Mark Katsonga has come under fire from economic experts for his plans, meted out during the Tuesday’s presidential debate, that he will abolish government’s consolidated account once voted into power after May 20 elections.
According to the experts, speaking in separate interviews with The Nation yesterday, doing away with account number one, popularly known as account number one, would jeopardise some key critical government obligations such as repaying government debt, statutory expenditure, among others.
The commentators have also said abolishing the consolidated account as envisaged by Katsonga, would imply reviewing the constitution as well as the Public Finance Management Act (PFMA) governing the number one account.
The consolidated fund—established by section 172 of the Constitution and section 28 of PFMA—is where all public money is deposited and from which the Secretary to the Treasury finances the operations of government.
It comprises the consolidated deposit account, consolidated Advance Account and the he Consolidated Revenue Account.
Katsonga repeatedly argued during a presidential debate at the Bingu International Conference Center (Bicc) that he intends to close the number one account and that the central government job we will be just overseeing the account.
Said the PPM president: “Decentralisation should start from account number one. This year’s budget is K640 billion which if decentralise it, each district could get about K22 billion. It’s a pity if you go out there to hear that the council’s budget is K1 million.”
He added: “We have political rhetoric on decentralisation and devolution of power but we have not decentralised not even an inch.”
However, the Economics Association of Malawi (Ecama) executive director Nelson Mkandawire yesterday faulted Katsonga saying what is key is to clean-up the way the consolidated account is managed and not necessarily abolish the account.
Mkandawire said Malawians have witnessed themselves how the account has been abused in the past hence the need for ensuring proper management and accountability over the account ‘as opposed to closing.’
“I don’t think that’s a well-thought idea [closing account number one].The account has various activities and probably we should talk about principals of accountability around it,” he said.
Ministry of Finance Spokesperson Nations Msowoya in an interview said:”I don’t know how certain things can be apportioned at district level if the account is abolished. In any way we are already decentralised. You really need to contextualise such a decision before making a decision wholesome.”
