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Treasury lauded on digital payments

FUDZULANI—We are catching up

The ICT Association of Malawi (Ictam) has hailed the recent announcement by the Ministry of Finance through the Accountant General’s Department to adopt a paperless system.

In a published notice Wednesday, the Ministry of Finance said, from September 2021, it would no longer be issuing cheques to its clients, but rather the Accountant General’s Department will be processing payments using Electronic Funds Transfers.

Reacting, Ictam President Bram Fudzulani hailed the move, saying it would allow the country to begin moving towards a more technology -based economy.

“It is not like we are reinventing the wheel but we are catching up with what the rest of the world has been doing and it brings in issues of efficiency and transparency because, when you are pushing paperwork, there is a lot of people involved and along the way people will start committing corrupt practices,” Fudzulani said.

He said there is a need to set up reforms and regulations to ensure that people do not hamper the progression into digital systems.

This move follows the rolling out of SAP-based Integrated Financial Management Information System to all ministries, departments and agencies on July 1 2021 and the instruction for all users to go paperless.

“Electronic Funds Transfers (EFT) mode of payment has more advantages because apart from reducing long queues (to those who come to collect cheques) at the department, it will also be efficient as clients will be accessing money instantly,” the public notice reads.

This means that, once payments have been done, the government will remit the money into the beneficiary’s bank registered account.

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