PESHAWAR: The Khyber Pakhtunkhwa Local Government Department has failed to develop a financial management system for the Town Municipal Administrations (TMAs) despite the passage of four years.
The provincial Finance department has refused to provide further support to the LG Department, advising it to directly negotiate with the Accountant General for an extension of the current system.
The Local Government Amendment Act of 2019 approved the development of a financial management system for the TMAs. The existing personal ledger account was to be replaced, but the personal ledger account is still in use, requiring extensions from the Accountant General with the permission of the Department of Finance.
At present, the personal ledger accounts of all TMAs in the province are frozen, affecting their financial affairs. According to sources, a high-level meeting has decided that the Local Government Department will request an extension for the personal ledger account until June 2024. The LG department will contact the Accountant General directly for this purpose.
In addition, the LG Department will ensure the necessary legal protection for the implementation of the financial management system in all TMAs in the province by June 2024.
