To prevent corruption, embezzlement, and the mismanagement of public funds, modern financial systems enforce strict statutory oversight controls.
The Public Finance Management (PFM) Legal Framework
Public funds are protected by specialized laws (such as a Public Finance Management Act). This legislation sets clear operational standards for government institutions:
  • The Consolidated Fund: The primary state bank account where all national tax revenues must be deposited. No money can be withdrawn from this fund without formal parliamentary approval via an Appropriation Act.
  • Treasury Single Account (TSA): A unified banking structure that pools all government bank accounts, giving the Treasury real-time visibility into the state’s total cash position and reducing banking fees.

Key Oversight Institutions
  • The Auditor-General: An independent constitutional officer who audits the accounts of all national and local government entities. The Auditor-General publishes annual audit reports for parliament, highlighting cases of waste, unlawful expenditure, or financial mismanagement.
  • Public Accounts Committee (PAC): A parliamentary oversight committee that reviews the Auditor-General’s reports. It has the legal authority to summon government officials to explain financial audit queries and recommend criminal prosecution for misappropriated funds.

 
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