All Gov’t Collections Must Be Deposited At Central Bank Account- Cabinet

GOOBJOOG NEWS/MOGADISHU: The Federal Government has directed all Ministries, Departments and Agencies to ensure all revenues collected are deposited in the Treasury Single Account (TSA) as mandated by law.

The Prime Minister’s Office in a decree issued today warned against banking any revenues collected by MDAs in any other accounts including in commercial banks except the TSA at the Central Bank.

The directive is in accordance with the Public Finance Management Act (PMF) which obliges all MDAs to deposit any collections including taxes, fines and penalties and all funds received on behalf of the Federal Government at the Treasury Single Account at the Central Bank.

This follows concerns raised regularly by the Auditor General that several MDAs operate different accounts in commercial banks.

The Cabinet also warned MDAs against collecting and spending revenues at source as has been noted by subsequent Auditor General’s annual reports.

Further, the decree warned MDAs against any modification of base tarrifs noting the Minister of Finance is solely empowered to conduct such changes. The MDAs were further directed to ensure all contracts signed by the government must conform with the PMF Act 2019 and Procurement Act 2016 before any renewal.