By Amb. Emmanuel Mwamba
GOVERNMENT MOPS ALL MINISTRY, PROVINCES AND GOVT AGENCIES MONEY AND REPATRIATES IT TO BOZ
…Ministries, Provinces and Local Government to maintain Zero-Based Balances in accounts at Commercial Banks…
Purpose of the Guidance
The Treasury has observed that Ministries, Provinces and Agencies are
maintaining approximately K12 Billion in various bank accounts at commercial banks on a monthly basis.
In order to enhance effectiveness and efficiency in the
utilization of cash, the Treasury, through consultative process with key
stakeholders, found it necessary to implement stringent cash management
To this effect, this circular has been issued to provide guidance to Ministries, Provinces, and Agencies on cash management arrangements for bank accounts maintained in Commercial Banks.
3.0 Cash Management Arrangement for Commercial Bank Accounts
maintained by Ministries, Provinces and Agencies.
Pursuant to section 7 (z) of the Public Finance Act No. 1 of 2018, the Treasury wishes to provide guidance as below:
3.1 Efective Monday, 30th January 2024, the Treasury shall implement the
ZERO-BASED BALANCE (ZBB) on Government bank accounts in
3.2 All funds in Commercial Bank Accounts to the Credit of MPAs shall be mopped to the Mopping Account at Bank of Zambia.
These funds shall be transferred back to the Commercial Bank Accounts of respective MPAS
upon submission of a request to the Treasury.
3.3 Controlling Officers and Sub warrant Holders should ensure that all requests are
accompanied by proof of certification of works for capital
projects and an approved plan for immediate program with stipulated
timelines for operational programmes.
(See Appendix 1)
3.4 The Treasury shall transfer funds back to Institutions within 48 hours of receipt of such request.