The Institute of Chartered Accountants in Malawi (Icam) says it is still pushing for the adoption of the International Public Sector Accounting Standards (IPSAS) in the public sector, an initiative being spearheaded by International Federation of Accountants.
Malawi is among countries yet to fully adopt the system and Icam says it is now engaging government to ensure that Malawi fully implements the standards.
IPSAS are accounting standards used by public sector entities around the world in the preparation of financial statements to improve the quality of general purpose financial reporting by public sector entities.
Marketing and Public Relations Officer at Icam, Patrick Achitabwino, said if fully adopted, the system will help authorities to make informed decision on resource allocation, thereby increasing transparency and accountability.
“It is believed that when we implement the initiative, some of the malpractices in public finance management will not be there anymore,” said Achitabwino.
He said public accountants, just like their counterparts in the private sector, have the task to add value towards growth of the economy. He said the system will help the country to improve on global competitiveness.
He, however, said that the country needs to be aggressive towards spearheading internationally accepted standards to remain competitive on the global market.
“The future of business will be centred on speed and also on alliances and partnerships. organisations or businesses have to transform. The speed at which we are operating is too slow for businesses,” said Achitabwino.
The nation is still nursing brutal wounds from the historic public financial scam dubbed cashgate which saw some politicians and business people conniving with some civil servants to loot public coffers.
This among others, led to the indefinite closure of budgetary support from Malawi’s key development partners.