Govt says it is withholding funding to FIC

MINISTRY of Finance says that it is inconceivable for anyone to suggest that government is impeding the functioning of the Financial Intelligence Centre.

Ministry of Finance spokesperson Chileshe Kandeta stated in a statement yesterday that the public should rest assured that the insinuated manoeuvres allegedly aimed at stifling the operations of the Financial Intelligence Centre (FIC), as some sections of society might want the populace to believe, were non-existent.

“It is, therefore, inconceivable for some sections of society to suggest that the government is impeding the functioning of the FIC, an entity which we created and brought into statutory existence through an Act of Parliament; resulting from our own self-motivated interest to trace, monitor, and eliminate illicit flows in our financial system,” Kandeta stated.

“In the 2017 budget, Parliament approved a total estimate of K30 million for the Financial Intelligence Centre, a grant-aided-institution under the Ministry of Finance, of which 96 per cent was released by end December, 2017. In the 2018 budget, Parliament approved a total estimate of K31.5 million for the Financial Intelligence Centre (FIC). This week, the Treasury has released K2. 625 million to the Centre.”

Kandeta stated that the Ministry of Finance, through various reforms, had taken the lead in ensuring that the government policy of enhancing the performance of fiscal and monetary governance institutions was effectively implemented so that organisations, FIC included, continued to produce high quality performance for the well-being of the country’s financial and public sectors.

“This approach not only helps to position our governance efforts in good standing with our bilateral and multilateral partners in the region and the international community, it also reaffirms our consciousness to the expectations of our people. The 96 per cent funding release to FIC in 2017 certainly reflects the commitment of the government to ensure smooth operations of the organisation,”

Kandeta stated.

“Further, the government has clear communication processes and procedures for line ministries, provinces, and other spending agencies such as FIC. There is a functional board in place at FIC that deals with policy and operational direction of the organisation. Through the board, the centre management submits regular statutory reports on the operations and programmes of the FIC to the government through the Ministry of Finance.”

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