Prime
Treasury phases out use of cheques, cash in govt offices
The Auditor General says the Treasury nowadays doesn't issue cheques and nolonger uses cash in government offices. Photo / File
What you need to know:
- The Auditor General says all government payments are now done electronically
The Treasury has completely phased out the use of cheque and cash payments in government offices, according to Auditor General Lawrence Semakula.
The move, Mr Semakula said during the Treasury Leadership Forum breakfast meeting organised by Standard Chartered Bank in Kampala yesterday, will also eliminate delays in payment of supplies as well as curb the escalating miss use of government cash.
Speaking under the topic Public sector insight, trends, benefits and governance in Treasury and cash management, Mr Semakula, said over the past 10 years government has been working towards improving management of money to achieve timely and accurate financial information for both local and the central government.
“These days we don't issue cheques [and] we don’t have cash in government offices. All payments are done electronically and it is based on the work plan and framework that requires the money to be paid. We release money when payments are due, now we release only in one account,” he said, noting this has been achieved through automation of the financial management process, through which implementation of a single treasury account and e-cash payments have been established.
Mr Semakula also said the Ministry of Finance had implemented limited cash withdrawal measures for government ministries, departments and agencies, which allows an entity to only withdraw Shs40m based on the framework requisition.
In 2020, the Ministry of Finance launched the electronic content management system to improve efficiency and effectiveness of service delivery.
The initiative sought to make operations of Ministry of Finance paper free, transactions to shift online and facilitate quick decision making, safety of documents and transparency.
Digitisation has the potential to dramatically reduce costs, increase efficiency and transparency as well as help Uganda to achieve a cashless economy.
Delay for supplies
Mr Semakula says all payments by ministries departments and agencies are now done through e-cash to minimise delays in payment to service providers.
“The implementation of electronic fund transfers for all government payments has been instituted. All government institutions now apply e-cash for payments based on their framework contracts,” he said.
