Hon. Changkuoth Bichiock, the Chairperson of the Finance Committee - COURTESY

The National Assembly has passed the Public Financial Management and Accountability Act 2011 (Amendment) Act, 2024 disallowing the cabinet from acquiring loans before its approval.

The Public Financial Management and Accountability Act 2011 (Amendment) Act, 2024 also mandates the National Revenue Authority as the only institution to collect taxes all over the country and distribute the percentages to the states.

Changkuoth Bichiok Reth, the Chairperson of the Finance and Economic Planning Committee says the parliament inserted new subsections in the acts to regulate the acquisition of loans and taxes

Regarding loans, he said should first present the intent to acquire a loan before entering into any agreement with any lender of a credit facility.

After any agreement, the lender of a credit facility in question shall not disburse the fund before the approval of the parliament.

” The committee recommend the addition of sub-section 3 of section 35 (a) to read as follows:

“Any lender of a credit facility that has not received approval from the assembly shall cease such approval before securing the loan or disbursement of such fund.

“This means the minister of finance cannot go ahead without presenting to the parliament first before they go and acquire a loan because it has to be passed by the parliament and the parliament has to approve that and then now they can continue to do the agreement,” he said.

On tax-related matters, the lawmakers said it recommended that the South Sudan Revenue Authority should be the only body to collect taxes for the government.

This, Bishiok said, is to improve the collection of government revenues.

” The committee recommend the addition of a new sub-section 7 of section 21 to read as follows: to improve the collection of government revenue, the South Sudan Revenue Authority shall be the only body that collects taxes for the government and distributes the percentages to the states and administrative areas accordingly. “

The passing of the crucial bill comes after the executive secured a 738 million US dollar loan from the Ethiopian government to construct roads to connect the northern part of the country to the neighbouring country.

The May 29, 2024 loan process was not tabled before the August House before the deal which the parliament ratified on Tuesday.