In a bid of the Cambodia government to enhance national financial accountability and strengthen effective management in public institutions, Ministry of Finance on Monday signed a memorandum of understanding with commercial bank, Acleda, to handle government’s budgetary and revenue transaction, including the payment of government salaries in Kandal and Banteay Meanchey provinces.

“Using the commercial banking system to manage its national revenue and expenditure transactions is designed to enhance financial accountability and increase effective management in public finance,” said Aun Porn Moniroth, Finance Ministry Secretary of State, quoted by the Cambodia Daily as saying.

Providing commercial banking services for two provinces will be implemented from July 1. The government chose Acleda to be partner to handle revenue transaction because the bank has its networks throughout the country. If successful, this pilot program will be expanded to five provinces.

Revenue and expenditure transactions are currently executed through the National Bank of Cambodia (NBC).

Vong Bunintreavuth, deputy director of the National Treasury of Cambodia, quoted the Phnom Penh Post as saying that the decision to switch to ACLEDA was intended to “make public financial management accountability more effective, especially in relation to national revenue and expenditures management”.

NBC Director General Tal Nay Im acknowledged Sunday that ACLEDA had a much wider network, as the NBC only has branches in provincial towns. “It will be easier than to do the transactions with the central bank,” the Post continued.

“It will help keep track of where the dollar comes from and ends up. It will help create more accountability,” said In Channy, CEO of Acleda bank, quoted by the Cambodia Daily as saying.

Presently, Acleda bank is the leading commercial banks in Cambodia, consisting of 229 branches and 6,900 staff across the country.

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