The Government has introduced new regulations to strengthen oversight of approximately $490 million in government-funded grants allocated across ministries in 2026.
The Public Financial Management (Grants) Regulations 2026 were recently gazetted, Minister for Finance and Treasury Rexon Ramofafia announced.
Made under Section 82 of the Public Financial Management Act 2013, the regulations provide an interim framework for managing and monitoring government grants.
The move follows regulatory and control gaps identified in recent audit reports, including the Office of the Auditor-General’s audit of the Economic Stimulus Package (ESP).
Previous audits found that public and donor-funded discretionary grants lacked a standardised administrative framework.
This contributed to fragmented administration, unsupported expenditure and millions of dollars in public funds remaining unaccounted for over the years.
In a statement, the Government says the interim regulations require the ministry secretary to prepare an administration manual to guide grant delivery until a comprehensive regulatory framework is established.
The framework covers six stages of grant administration: application, approval, disbursement, project implementation, acquittal and final certification.
Ramofafia said the regulations form part of a broader public financial management reform agenda for 2026 and 2027.
Key reforms include:
– Accelerating reforms in policy-based budgeting, government accounting and cash management. The roadmap aims to achieve full operational maturity by 2028, build fiscal buffers ahead of the planned introduction of Value-Added Tax (VAT) on 1 January 2028, and keep public debt below the statutory ceiling of 35 per cent of GDP.
– In 2027, the Ministry plans to work with international experts to assess its readiness for artificial intelligence and introduce automated machine-learning processes. These will support daily bank reconciliations, financial reporting and fraud detection. The initiative was announced by the Prime Minister.
– The Government now rejoins the Extractive Industries Transparency Initiative (EITI), strengthen risk-based mining audits and begin developing a legislative framework for a Sovereign Wealth Fund by mid-2027. The fund would channel mineral revenues into designated accounts.
– The reforms include reviewing and bringing special funds under Ministry of Finance and Treasury oversight, piloting electronic procurement, establishing a Ministry accountability unit and aligning Dynamics 365 budget presentations with GREAT Coalition policy priorities.
Ramofafia said the interim regulations also require the development of a comprehensive, permanent grants framework.
Work has already begun with support from independent technical assistance provided by Australia.
He said his ministry is consulting government agencies and the Attorney-General’s Chambers while drafting the permanent grants regulations and new Budget Regulations.
Both are targeted for completion and gazettal by the end of 2026.
“Grants are public monies provided to achieve specific economic and social policy outcomes,” Ramofafia said.
“Recipients must demonstrate transparent utilisation and tangible development impacts.
“This reform reflects our government’s commitment to transparency, accountability and responsible management of public resources.”
