A new regulation has been announced to permit the utilization of credit cards for government office expenses. The objective of the regulation, which has been published in the gazette and is effective from today, is to provide government offices with options in cases where transactions cannot be carried out via internet banking or the internet.
As per the regulation, a specific form needs to be submitted to the Ministry of Finance. The form should include details like the purpose of card usage, the credit limit required, and nominee details. Additionally, the form must be accompanied by an information form about the financial institution issuing the card and a copy of the nominee’s ID card.
The regulation also mandates that councils should apply for credit cards via the Local Government Authority (LGA). Upon approval of the Financial Controller, the credit card application shall be submitted to the Financial Institute with the Ministry of Finance’s consent. Expenditures incurred by authorized offices through the issued cards are governed by financial regulations, and the details of such expenses should be submitted to the Ministry of Finance.
Furthermore, the regulation authorizes the Ministry of Finance to set the credit limit of the cards issued to government offices. Any expenditure exceeding the prescribed limit necessitates written approval from the Ministry.
The Ministry of Finance has also detailed the procedures to be followed in case of any violation and under which circumstances the card issued under the rule will be prohibited. Consequently, the Financial Controller is empowered to alter the nominee of the card or seize and revoke the card if it is misused.