CI-NEWS

Financing decentralization: Treasury DG and Taxation DG take commitments.

2020-02-03

No: 469

Financing decentralization: Treasury DG and Taxation DG take commitments.

Moh Sylvester Tanghongo and Modeste Mopa Fatoing sought to assure Cameroonians at a roundtable that the reforms of modernizing the Treasury Single Account and optimization of budget and local revenue would generate sufficient resources to speed up the implementation of decentralisation.

The implementation of the law to fast track decentralization adopted by Parliament last December will necessitate the availability of funds devolved to the decentralized collectivities in record time. In this connection, reforms are ongoing at the Directorate General of Treasury, Financial and Monetary Cooperation (DGTFMC ) and the Directorate General of Taxation (DGT) in a bid to mobilize the funds to speed up the implementation of decentralization.

Moh Sylvester Tanghongo, DG of DGTFMC and Modeste Mopa Fatoing, DG of DGT, sought to assure Cameroonians at a roundtable on 30 January 2020 that the reforms of modernizing the Treasury Single Account and optimization of budget and local revenue would generate sufficient resources to speed up the implementation of decentralization.

The roundtable which had as theme “Fiscal consolidation and economic recovery in a context to speed up the implementation of decentralization”, was coordinated by Gilbert Didier Edoa, Secretary General at MINFI, on the first day of the annual conference of senior officials of central, devolved and external services of the Ministry of Finance. Two major presentations delivered by the Director of the Treasury, Tela Samuel, on “Modernisation of the Single Account and Financing of Decentralization”, and Nomo Maximilien, research officer at the Directorate General of Taxes, on “Dematerialisation of procedures and optimization of budget and local revenue” set the tone for the roundtable. Other members of the roundtable panel were Moh Sylvester Tanghongo, Director General of the Treasury; Mopa Modeste Fatoing, Director General of Taxation; David Abouem A Tchoyi, former minister and consultant on decentralization; and Prof. Jean Claude Leuwe, Inspector General at the Ministry of Decentralisation and Local Government (MINDDEVEL).

Speaking ex cathedra on the subject, David Abouem A Tchoyi, former minister, and now consultant, said for decentralisation to succeed, the territorial collectivities must have added value. He expressed regret that the money transferred to them did not come on time and when it was available, it was not enough. The support by the state to councils and local authorities, he said, must be optimal, especially as most of the councils hardly attain the 45 percent target of revenue collection.

As a solution to this predicament, the DG of treasury said following reforms carried out on the Single Treasury Account, sub accounts would be created for the various local authorities. He announced that the decentralisation account was being filled up on a quarterly basis from which the local collectivities can draw.

Quizzed on how the deadlines for the payment of bills and funds to finance decentralization can be reduced, Moh Sylvester said if government funds stashed away in commercial banks are repatriated, this problem would be resolved. He explained that up to 2016 before the various crises set in payments were done in 60 days. This coupled with the pressure of financing structural projects weighed down on the treasury, leading to some payments today delayed to 150 days.

The treasury DG said despite the “conjunctural elements” that have led to the extension of payment deadlines, it was still possible to adjust the unique account to serve the local collectivities.

He expressed joy that the ministry of decentalisation had put in place a working group to discuss the management of its own sub account.

Moh Sylvester said the repatriation of over 400 billion FCFA idling in commercial banks would lead to a more optimal management of the Single Account for the benefit of Cameroonians.

For his part, Mopa Modeste, taxation DG, expressed joy that dematerialization of operations has led to a jump in tax revenue over the last 13 years which is effectively centralized and paid to the local collectivities. He said there was need for collaboration between the local authorities and fiscal administration to resolve conflicts of competence over collection of local revenue. He said quite often when the local authorities had their way, there was a drop in collection and the taxes collected were not paid on time for centralization and redistribution to the local authorities.

On the question of the security of dematerialisation operations, he said they were minimal but on a few occasions they had been detected and resolved.

In a question and answer session that ensued, questions were raised about the training of treasury staff in ethics, the training of mayors and the high cost of maintaining franking machines.

Responding to these worries, the DG of taxation said there was a reform in view of moving towards the electronic stamp rather than the machine stamp.

For his part, the treasury DG said personnel of his directorate were constantly being trained for quality of service.

He said though “conjunctural arrangements” like AfCON put pressure on the treasury’s single account, he is convinced the arrangement in place is good for speeding up decentralization. Reforms underway as demanded by the IMF, he said, would make the Treasury Single account pass muster.

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Financing decentralization: Treasury DG and Taxation DG take commitments.