IMF 2013 report paints gloomy picture on Zambia

The recent [IMF] assessment found a deterioration in Zambia’s Public Financial Management (PFM) , including reporting and quality control. The IMF found that Procurement practices have also deteriorated, with single-source contracts for some large projects. While the rollout of the Integrated Financial Management Information System (IFMIS) has continued, its implementation, as well as that of the Treasury Single Account (TSA), has been weak, and only release-based fiscal data are available. In addition, consolidation of financing data with the Bank of Zambia (BOZ) needs to be improved…”

“.IMF stressed the importance of stepping up PFM reform to support fiscal consolidation and improve budget planning and implementation.
IMF Staff underlined the importance of (i) enhancing budget credibility and consistency between the National Development Plan, Medium-Term Expenditure Framework, and annual budget; (ii) improving fiscal data as well as forecasts by enhancing the macro fiscal framework; (iii) expanding the coverage of the TSA by closing line ministries’ accounts at commercial banks; (iv) improving collaboration between units at the Ministry of Finance, and with the BOZ, to produce fiscal data based on expenditures rather than releases; (v) strengthening IFMIS implementation and controls; and (vi) providing additional resources to the Accountant General’s Department to support these reforms…”

This means that the little improvements recorded in 2012 have been wiped out
(Source: IMF Article 4 Report 2013, Paras 21-22)

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