{UAH} FRANK; THIS IS THE INSTRUMENT THE THIEVES WANT TO INCREASE FROM 1.5 BILLION TO 2.2 BILLION

Frank,

A second report was also prepared, it's massive, 75 pages in analog speak.

These are points 6 to 8 from the MOU.  These thieves run out cash mid year, and the NSSF to cook the books.

Here you go;

6. Government remains committed to addressing constraints affecting the business climate by 

stepping up infrastructure development, mainly on energy and roads. 

I. Performance Under the PSI 

7. As at end-June 2013, all quantitative assessment criteria were observed, while structural 

benchmarks were broadly achieved. The indicative targets on tax revenues and expenditures on 

poverty alleviating sectors for end-June 2013 were not met by small margins. Government is 

undertaking remedial measures to improve revenue collection and tax administration as well as 

addressing implementation capacity of the Ministries, Departments and Agencies (MDAs). 

8. Significant progress has been made on achieving the structural benchmarks set from July to 

December. Government carried out the first stage of recapitalization of the BoU with marketable 

securities in May. Government remains committed to improving the management of public finances. 

Although with some delay, there is ongoing work on the VAT gap analysis in consultation with FAD. 

All central government entities are now covered by the Integrated Personnel and Payroll System 

(IPPS). Test runs are being undertaken on the functionality of the system, and it is expected that 

payment of salaries will be run through the IPPS starting in April 2014. The benchmark on rolling out 

the Integrated Financial Management System (IFMS) to cover all central government votes has been 

achieved ahead of schedule. The first phase of implementation of the Treasury Single Account (TSA) 

was completed in October 2013 by consolidating the central government accounts. Next steps 

include establishing cash management and debt management units. However, the structural 

benchmark on submitting to cabinet regular quarterly reports on unpaid bills of nine ministries 

based on data for the previous quarter was delayed because a mechanism of clear 

sanctions/penalties was being put in place. This awaits passing of the new Public Financial 

Management Bill. This bill is being considered by parliament, and consultations with the relevant 

stakeholders and the public are ongoing. 

Viele GruBe

Robukui