The Ministry of Finance, in collaboration with the World Bank, has launched the Sub-National Public Expenditure and Financial Accountability (PEFA) Assessment and Public Financial Management (PFM) Review to strengthen financial management at the local government level.
Held under the theme, “Strengthening Sub-National Public Expenditure and Financial Accountability Assessment and Public Financial Management Review,” the launch brought together officials from the Ministry of Finance, representatives of Metropolitan, Municipal and District Assemblies (MMDAs), the Inter-Ministerial Coordinating Committee on Decentralisation, the Internal Audit Agency, development partners and other government institutions.
Launching the programme on behalf of the Minister for Finance, Dr. Cassiel Ato Forson, the Chief Director of the Ministry of Finance, Mr. Patrick Nomo, called for a deeper examination of the financial management challenges confronting local assemblies.
He noted that strong public financial management at the national level must be matched by equally strong systems at the sub-national level, where citizens directly experience the impact of the national budget.
Mr. Nomo stressed that the exercise should go beyond determining whether financial management systems and procedures were in place to establish why persistent weaknesses remained and identify practical measures to address them.
He urged the assessment teams to move beyond routine checklists and investigate the root causes of financial management challenges. He further emphasised that the transfer of resources to assemblies must be accompanied by deliberate efforts to build their capacity to manage funds responsibly and maintain local infrastructure to ensure sustainable benefits for communities.
The initiative comprises a PFM Review covering all 261 Metropolitan, Municipal and District Assemblies, alongside detailed PEFA assessments in 10 selected assemblies. The exercise will examine key areas, including budgeting, revenue mobilisation, expenditure management, procurement and accountability, with the aim of identifying gaps and recommending practical improvements.
Mr. Nomo underscored that the ultimate value of the assessment would lie in the implementation of its recommendations, ensuring that improvements in financial management translated into tangible benefits for citizens.
Mrs. Janine Walz, Head of Cooperation at Switzerland’s State Secretariat for Economic Affairs (SECO), reminded participants that the true measure of local governance was the positive difference it made in people’s lives.
She highlighted the importance of effective public financial management in ensuring that public resources supported essential services such as children’s education, healthcare and other everyday needs.
Reaffirming Switzerland’s support for the initiative, Mrs. Walz encouraged participating institutions to share information openly and use the exercise as an opportunity to build institutional capacity, strengthen accountability and enhance public trust.
For his part, Mr. Raymond Muhula, Lead Public Sector Specialist at the World Bank Group, emphasised that the increasing resources allocated to assemblies must translate into improved service delivery for local communities.
He explained that the assessments would help identify areas where existing financial management systems were performing well, as well as those requiring improvement.
Describing the initiative as government-led, Mr. Muhula reaffirmed the World Bank’s commitment to working closely with local institutions to develop practical recommendations that would inform policy and strengthen service delivery.
The exercise is supported by the World Bank and Switzerland’s State Secretariat for Economic Affairs (SECO), in collaboration with the Inter-Ministerial Coordinating Committee on Decentralisation.
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