THE Public Accounts Committee (PAC) has expressed concern over increased reductions on budget allocations to government ministries under the Supplementary Appropriation Bill 2024 which before the committee for scrutiny.
PAC has commenced its inquiry into the bill last week and relevant officials from the Ministry of Finance and Treasury appeared before the PAC on Wednesday as part of the inquiry.
The Variation of the Heads is one of the four components of the Supplementary Appropriation Bill 2024.
Speaking at the hearing, PAC Chaiman and MP for Central Honiara, Gordon Darcy Lilo questioned the legality of the format in which the bill is presented and that is increased reduction for various heads to increase other heads.
He said that the concern is whether or not the format is lawful and that the actions taken to reduce other heads and increase the ones that have been selected to be increased is the right thing to do?
“Because what happens is the head expenditures of quite a number of ministries have been reduced and others has been increased, meaning that there’s an effect of supplementation or supplementary provisions being granted to some of the ministries, whilst others have been reduced.
“These questions are raised on the basis of what we consider to be the rightful provisions in Sections 1 and 2 of the Constitution, which does not provide anything about the variation.
“The Public Finance Management Act, Section 53, which is the debit free on the Variation of Appropriation defines the Variation of Appropriation amounts through the process of virement.
“There’s a restriction there on where you can actually vire and that you can only vire within a Head and a from a Sub-Head to another Sub-Head. There’s restriction on virement from Development Budgets and on personal matters,” PAC Chairman Lilo said.
The PAC Chair said PAC has noticed that in the bill, there has been virement/transfer from one Head to another.
Thus, PAC gave time for the representatives of the MoFT to consult the Attorney General (AG) on this issue for some clarifications.
After consulting the AG, Permanent Secretary, Mckinnie Dentana said there are two powers that the Minister can do on the Appropriation Bill and they are virement and preservation.
“According to the AG’s Chamber advise, the power to do variation, which is part of this bill, cannot be performed by the Minister but by Parliament, which approves the appropriation.
“As you have rightly said Mr Chairman, the bill that comes before the committee is the 2024 Supplementary Appropriation Bill 2024.
“What this means is the proposal is just a supplementary to the bill that is before the committee. In other words, it is the parliament that has the power to approve or not approve,” PS Dentana said.
By AGNES MENANOPO
Solomon Star, Honiara
