Government Applies E-payment System to Effectively Adjust Expenditures
Vice Minister for Treasury Affairs Confirms:
Applying e-payment system delivers a message to the international financial community that "Egypt is keeping abreast with technology"
Finance Minister Mr. Amr Al-Garhy announced that all the State authorities, Special Funds and Accounts should end using paper checks by the 30th of November and would apply instead an e-payment system and the Treasury Single Account (TSA). As many as 61 thousand accounts for 2650 accountancy units would be closed across all the State's bodies.
This was announced by Mr. Al-Garhy at his lately held conference at the premises of the Ministry of Finance with the attendance of Vice Minister for Treasury Affairs, Dr. Mohammed Maait; Head of General Budget Sector, Mr. Mohamed Abdel Fattah; Head of Financing Sector, Mr. Abou Bakr Abdel Hameed; Head of Final Accounts Sector, Mr. Abdel-Naby; Head of Economic Authorities and Units Budget Sector, Mr. Ahmad Abdallah; Head of Accounts and Financial Directorates Sector, Mr. Emad Awaad; Head of E-Finance Co., Mr, Ibrahim Sarhan; and other officials at the Ministry of Finance.
Mr. Al-Garhy noted that employees at the Ministry and other state authorities had been working for almost 15 months to apply the TSA and the GFMIS systems, and they were well trained and equipped with the necessary devices to embark on the new systems. The GFMIS was the second step forward transferring the government to an electronic platform through linking both systems together as not to allow the execution of any payment except through these venues, he added.
Ministry of Finance finished 50% of the measures required for the automation of general budget and the whole target would be realized by the 31st of March 2018. 225 thousand transactions were executed via e-payment systems in last November up from 1000 transactions in last July, he added.
In collaboration with E-Finance Co., an Egyptian public entity owned by the National Investment Bank, the Ministry succeeded in implementing e-payment system with the highest degree of accuracy and professionalism, Mr. Al-Garhy stressed. He also pointed out that any newly applied system might encounter some challenges and difficulties at its threshold; however, the budget automation system recorded the highest rate in enforcing financial discipline and proved its ability not to be infiltrated by even a small sum.
On his part, Dr. Mohamed Maait, Vice Minister for Treasury Affairs, noted that the electronic transfer of all the government transactions and the substitution of paper checks with e-payment systems were indeed real challenges due to the different techniques and work environments required in the new systems. He underlined the great efforts executed and vast investments implemented by the government to successfully alter to the new e-payment system, noting that such move proved to the international financial institutions that Egypt was keeping abreast with the technological financial advances.
The next phase will target the installation of an electronic surveillance screen at the bureaus of the ministers or governors so as to enable them to instantly monitor financial transactions executed over the general budget, added Mr. Maait.
Head of E-Finance Co., Mr. Ibrahim Sarhan, said that 2009 witnessed the kick-start of the e-payment system and that nearly 50 thousand public employees were well trained to operate and deal with the new system. He also hailed the efforts of the Ministry of Finance in implementing and enforcing the new system across the different public entities.