News
AG upholds supremacy of PFMA over ACA
View(s):The Attorney General has ruled that all state financial transactions must follow the Public Financial Management Act (PFMA).
The AG’s opinion has been conveyed to Speaker Jagath Wickramaratne, who sought a clarification from him on whether it is the Anti-Corruption Act (ACA) or the PFMA that prevails when it comes to governing recruitments and funding of the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). The Speaker sought the clarification from Attorney General Parinda Ranasinghe after CIABOC Director General Ranga Dissanayake informed the Speaker of difficulties he was encountering when enforcing his powers owing to contradictions between the two laws.
The AG has stated that since Parliament is responsible for public finances, all government and semi-government institutions using public funds must follow budgetary proposals submitted under the Treasury, while all recruitments must be through the Salaries and Cadre Commission.
The AG has, however, opined that the CIABOC can still make recruitments to certain positions on its own, while it is also able to spend some funds subject to the powers of the Commission. Nevertheless, expenditure must still be subject to budgetary proposals.
In its interpretation of the ACT, CIABOC says the Act gives the Commission the authority to decide its budget, in consultation with the Finance Minister, and to recruit its staff. However, the Finance Ministry has insisted that all staff cadres and salaries must be made through the ministry. The CIABOC has said such a requirement has prevented it from recruiting a full cadre.
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