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Workshop on Public Finance Management Act
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Speeches and Media Releases
 Premier's Office

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 EASTERN  CAPE PROVINCIAL GOVERNMENT

PROVINCIAL WORKSHOP ON THE PUBLIC FINANCE MANAGEMENT ACT

BY PREMIER  M.A. STOFILE

AT FISH RIVER SUN

12TH APRIL 2000



The process of transforming the Public Service to be suitable for the new dispensation will take some time to complete.Indeed the reforms 
in the Public Service will be with us for as long as it exists.New times will continue to demand new approaches and methods.But the 
objective, we hope, will remain the same:to develop the best ways of serving our country.

 The advent of the amended version of the Public Service Act last year was one big step in this process of legal reforms.Even as we work-
shopped the PSA, we kept on referring to its twin that was in the pipeline.The Public Finance Management Act is that much-talked about 
twin.And it has arrived.The purpose of this Workshop, therefore, is to acquaint ourselves with this new member of the family.Relationships 
and roles between ourselves and among ourselves must be clear.As such, this is a very important initiative.

The Act aims at modernising the management of public finances.It attempts to improve the understanding of the responsibilities the various 
managers and executors have for the proper custody and use of public finances.This way, it is hoped, the public will have maximum outputs 
from what is put into the public coffers.It is the desired outcome that this Act should lay firm basis for an effective corporate 
governance framework for the public sector.

Misconduct, lack of discipline and corruption are some of the characteristics that get easily associated with the Public Service.Whilst our 
critics tend to generalise too much in dealing with these, the association itself is not without cause. A culture is visible, wherever one 
goes, where some individuals lack accountability and responsibility for the way they perform their jobs. The relationship between political 
and administrative heads tend to be gray and lead to tensions.This Act attempts to assist in minimising wasteage, corruption and 
misconduct. It also tries to assist political heads and administrative heads to have a better understanding of their roles, at least as 
they relate to the management of public finances.

I want to believe that the whole Act is important for Executive Authorities and HOD, not just for the MEC Finance and the Secretary to the 
Treasury.Having said that, I want to advise administrative heads or accounting officers to pay a special attention to Chapters 5, 7 and 
10.They must have the contents of these chapters in their hearts at ALL times. Perhaps Chapter 7 could only remain in their minds. 
Executive authorities are also advised to keep Chapters 5 and 10 in their minds.But Chapter 7 must be in the heart of each and every 
Executive Authority.

I am aware that most of the Executive Authorities and Accounting Officers are not accountants.That is no excuse at all. We are not called 
upon to be accountants but to be accountable.All senior managers should know how to cause all sections and units of a Department to make 
his/her work as an accounting officer possible.Sitting back and expecting things to be done properly is not going to help.We must be hands-
on, creative and transparent.Above all, we must be diligent and committed.This Act is an important tool to help us achieve these 
objectives.

 Let us lead for South Africa to follow.

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