Wednesday, 13 February 2002 I SERIES — Number 7

REPUBLIC GAZETTE

OFFICIAL PUBLICATION OF THE REPUBLIC OF MOZAMBIQUE

2nd SUPPLEMENT

NATIONAL PRESS OF MOZAMBIQUE

NOTICE

The matter to be published in the "Republic Gazette" must be submitted in a duly authenticated copy, one for each subject, which must contain, in addition to the necessary indications for this purpose, the following endorsement, signed and authenticated: For publication in the "Republic Gazette".

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TABLE OF CONTENTS

Assembly of the Republic:

Law No. 9/2002: Creates the State Financial Administration System.

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ASSEMBLY OF THE REPUBLIC

Law No. 9/2002

of 12 February

The current State Financial Administration System is based on legal norms dating back more than one hundred years, notably the Financial Regulations, which date from 1901, and the Public Accounting Regulations, from 1881.

The need for reform to introduce legislation and management models more suited to the current needs of public treasury administration has determined the occasional adoption and implementation of some measures.

In fact, since 1997, efforts have been made to modernize areas such as the State budget, indirect taxes, customs, among others, with the aim of improving the budget programming and execution system, harmonizing the indirect tax system and the customs tariff with the systems in force in the countries of the region in which Mozambique is inserted, and outlining registration circuits in the area of public accounting, aiming to make them more efficient, effective, and transparent.

Thus, it being necessary to establish in a more comprehensive and consistent manner the basic principles and general rules of an integrated financial administration system for the organs and institutions of the State, under the provisions of paragraph 1 of Article 135 of the Constitution of the Republic, the Assembly of the Republic determines:

TITLE I

State financial administration system

CHAPTER I

General provisions

ARTICLE 1 (Object)

1. The State Financial Administration System is created, hereinafter referred to as SISTAFE.
2. SISTAFE comprises the following subsystems: a) State Budget Subsystem; b) Public Accounting Subsystem; c) Public Treasury Subsystem; d) State Patrimony Subsystem; and e) Internal Control Subsystem.
3. SISTAFE establishes and harmonizes rules and procedures for the programming, management, execution, and control of the public treasury, in order to allow its effective and efficient use, as well as to produce integrated and timely information concerning the financial administration of the organs and institutions of the State.

ARTICLE 2 (Scope of application)

1. This Law applies to all organs and institutions of the State.
2. The preceding paragraph includes State institutions with administrative and financial autonomy, as provided for in Article 6 of this Law.
3. This Law also applies to local authorities and State enterprises, except regarding the rendering of accounts, which is governed by specific legislation.

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ARTICLE 3 (Objectives of SISTAFE)

SISTAFE aims to: a) establish and harmonize rules and procedures for the programming, management, execution, control, and evaluation of public resources; b) develop subsystems that provide timely and reliable information on the budgetary and patrimonial behavior of the organs and institutions of the State; c) establish, implement, and maintain an accounting control system for budgetary and patrimonial execution, adequate to the needs of registration, information organization, and performance evaluation of actions developed in the field of financial activity of the organs and institutions of the State; d) establish, implement, and maintain an efficient and effective internal control system and internationally accepted internal audit procedures; e) establish, implement, and maintain a system of procedures adequate to the correct, effective, and efficient economic conduct of activities resulting from programs, projects, and other operations within the scope of the programmed planning outlined and the intended objectives.

ARTICLE 4 (Fundamental principles)

SISTAFE is governed, among others, by the following principles: a) financial regularity, by which the execution of the State budget must be carried out in harmony with current norms and by complying with established deadlines; b) legality, which determines the full observance of current legal norms; c) economy, on the basis of which a rational use of resources made available and better treasury management must be achieved; d) efficiency, which translates into the minimization of waste to achieve the outlined objectives; e) effectiveness, which results in obtaining the desired effects with the adopted measure, seeking to maximize its impact on economic and social development.

ARTICLE 5 (Administrative autonomy)

The general regime for the financial administration of the organs and institutions of the State is administrative autonomy, understood as the capacity granted to State services and organisms to practice definitive and executory administrative acts, within the scope of their respective current administrative management.

ARTICLE 6 (Administrative and financial autonomy)

1. The exceptional regime for the financial administration of the organs and institutions of the State is administrative and financial autonomy, understood as the capacity recognized by law to a public entity, endowing it with its own powers to practice definitive and executory administrative acts, within the scope of its respective current administrative and financial management.
2. The organs and institutions of the State may only have administrative and financial autonomy when this is justified for their adequate management and, cumulatively, their own revenues reach a minimum of two-thirds of their total expenses.
3. For the purposes of the provisions of this article, own revenues do not include resources from the State budget, namely the results of current and capital transfers, from social security budgets, from any other organs or institutions of the State endowed or not with administrative and financial autonomy, and revenues from donations or bequests.
4. The attribution of the exceptional regime, based on the verification of the requirements provided for in this article, as well as its cessation, under terms to be regulated, is the competence of the Government, except in cases where the law expressly defines otherwise.

CHAPTER II

Organization and functioning of SISTAFE

ARTICLE 7 (Organization)

1. SISTAFE comprises a set of organs, subsystems, norms, and administrative procedures that make it possible to obtain revenue, realize expenses, and manage the State patrimony, including its applications and corresponding registration.
2. SISTAFE also comprises the obtaining and management of revenues that do not determine alterations to the State patrimony.

ARTICLE 8 (Coordinating organ)

The direction and coordination of SISTAFE belong to the Minister who superintends the area of Finance.

ARTICLE 9 (Economic year)

1. The economic year, within the scope of SISTAFE, coincides with the civil year.
2. The following are considered in the respective economic year: a) revenues collected therein; b) expenses paid therein; c) expenses to be paid therein when regularly incurred.

TITLE II

SISTAFE subsystems

CHAPTER I

State Budget Subsystem

SECTION I

Organization and competences

ARTICLE 10 (Organization)

The State Budget Subsystem, abbreviated as SOE, comprises all organs or

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institutions that intervene in budgetary and financial programming and control processes and also covers their respective norms and procedures.

ARTICLE 11 (Competences)

It is the responsibility of the organs and institutions that make up the SOE: a) prepare and propose the necessary elements for the preparation of the State Budget; b) prepare the draft Budget Law and its justification; c) evaluate the budget drafts of the organs and institutions of the State; d) propose necessary measures so that the State Budget begins to be executed at the start of the economic year to which it relates; e) prepare, in coordination with the Public Treasury Subsystem, the programming related to budgetary and financial execution, by observing the provisions of this Law and its complementary regulation; f) evaluate changes to the State Budget; g) evaluate the processes of budgetary and financial execution.

SECTION II Budget

ARTICLE 12 (Object)

The State Budget is the document in which revenues to be collected are forecast and expenses to be realized are fixed in a given economic year, and has as its object the pursuit of the State's financial policy.

ARTICLE 13 (Principles)

1. In its preparation and execution, the State Budget observes, among others, the following principles and rules: a) annuality, under which the State Budget has an annual validity and execution period, without prejudice to the existence of programs that imply multi-year charges; b) unity, on the basis of which the State Budget is only one; c) universality, by which all revenues and all expenses that determine alterations to the State patrimony must be obligatorily inscribed in it; d) specification, according to which each revenue and each expense must be sufficiently individualized; e) non-compensation, through which revenues and expenses must be inscribed in an unliquidated form; f) non-earmarking, by virtue of which the product of any revenues cannot be allocated to cover specific expenses, except for the exceptions provided for in the following paragraph 2; g) balance, on the basis of which all expenses forecast in the budget must be effectively covered by revenues inscribed in it; h) publicity, in conformity with which the Budget Law, revenue tables, and expense tables, as well as other economic and financial information deemed pertinent, must be published in the Republic Gazette.

2. The principle of non-earmarking is excepted in cases where: a) by virtue of administrative and financial autonomy, revenues must be allocated to a specific purpose or to a specific institution or institutions; b) financial resources are from specific public credit operations; c) resources result from donations, inheritances, or bequests in favor of the State with a specific destination; d) resources have, by special law, a specific destination.

3. An exception to the principle of specification is the inscription in the State Budget of a provisional allocation, under the management of the Minister who superintends the area of Finance, in order to allow its allocation, at an opportune and timely moment, to the realization of unforeseeable and unavoidable expenses.

ARTICLE 14 (Revenues)

1. Public revenue constitutes all monetary or in-kind resources, whatever their source or nature, made available to the State, with the exception of those in which the State is merely a temporary depositary.

2. No revenue may be established, inscribed in the State Budget, or collected except by virtue of law, and even if established by law, revenues may only be collected if they are forecast in the approved State Budget.

3. The revenue amounts inscribed in the State Budget constitute minimum limits to be collected in the corresponding exercise.

ARTICLE 15 (Expenses)

1. Public expense constitutes any expenditure of monetary or in-kind resources, whatever their origin or nature, spent by the State, with the exception of those in which the beneficiary is obliged to replace them.

2. No expense may be assumed, ordered, or realized without being legal, duly inscribed in the approved State Budget, having a place in the corresponding budgetary line, and justified regarding its economy, efficiency, and effectiveness.

3. Expenses may only be assumed during the economic year for which they have been budgeted.

4. Budgetary allocations constitute the maximum limit to be used in the realization of public expenses, in the corresponding exercise.

ARTICLE 16 (International contracts and agreements)

1. The signing of international contracts and agreements that imply the assumption of financial responsibilities for the State or involve fiscal matters require prior authorization from the Minister who superintends the area of Finance, even if such expenses have an allocation in the State Budget.

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2. The lack of authorization from the Minister who superintends the area of Finance determines the nullity of the contract or agreement, and therefore no foreign exchange transfer may be licensed within the scope of any null contract or agreement.

ARTICLE 17 (Staging of contractual charges)

Commitments resulting from laws, treaties, or contracts already signed by the organs and institutions of the State that involve expenses in more than one economic year must present the multi-year staging of their respective charges, associated with their respective budgetary framework, in such a way that the settlement of the charge is guaranteed in the allocation of the year in which the payment of the respective staged amount is determined.

SECTION III Program-based budget

ARTICLE 18 (Regime)

1. Without prejudice to its specification according to organic, territorial, economic, and functional classifications, the expenses that make up the State budget may be structured, in whole or in part, by programs.

2. With the aim of rationalizing preparation and strengthening the control of budgetary management and execution, the structure of budgetary programming is composed of programs, measures, and projects or actions.

ARTICLE 19 (Budgetary programs)

1. The budgetary program includes the expenses corresponding to a set of measures or projects or actions of a multi-year nature that contribute, in an articulated and complementary manner, to the realization of one or several specific objectives, relating to one or more public policies, necessarily including as an integral part a set of indicators that allow evaluating the economy, efficiency, and effectiveness of its realization.

2. The budgetary program may be executed by one or several managing entities.

3. For the purpose of the provisions of the preceding paragraph, the managing entities of budgetary programs are considered to be all organs and institutions of the State, including services and organisms with administrative and financial autonomy, competent to realize the expenses comprised in those programs.

4. Each budgetary program may be divided into measures, and there may be programs with a single measure.

5. Budgetary programs that are not divided into measures are divided into projects or actions, and there may be programs with a single project or action.

6. Projects or actions, integrated or not in measures, may be created during the execution of the State Budget.

ARTICLE 20 (Measures)

1. The measure comprises expenses of a budgetary program corresponding to projects, or actions, or both, well specified and characterized, which articulate and complement each other and contribute to the realization of the objectives of the program in which they are inserted.

2. The measure is executed by a single managing entity.

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3. Each measure is divided into projects or actions, which appear in an informational annex, and there may be measures with a single project or action.

4. The project or action corresponds to basic units of realization of the program or measure with strictly defined budget and calendarization, capable of, when executed, immediately giving rise to evaluable results.

SECTION IV Preparation of the budget proposal

ARTICLE 21 (State Budget)

1. The preparation of the State Budget is annual and is the competence of the Government.

2. In the annual preparation of its programs and budgets, the Government must take into account their compatibility with multi-year investment budgets, considering all planning outlined in the preparation of these.

3. The programming and execution of the State Budget must be treated at current prices.

ARTICLE 22 (Budget proposals of the organs and institutions of the State)

1. The organs and institutions of the State present to the Ministry that superintends the area of Finance, within legally defined deadlines, their budget proposals, aiming at the actions to be developed within the scope of their functions.

2. The budget proposals referred to in the preceding paragraph include, based on the budget guidelines fixed by the Government, through the Ministry that superintends the area of Finance, the quantitative limits, as well as the objectives to be achieved, to appear in the State Budget proposal.

ARTICLE 23 (Budget classification)

1. It is the responsibility of the Government to approve and maintain an organizational classifier of State revenues and expenses, whose structure obeys the following rules: a) budgetary revenue is classified according to economic, territorial, and resource source criteria; b) budgetary expense is classified according to organic, territorial, economic, and functional criteria.

2. The economic classification, both of revenue and expense, comprises the following two categories: a) current; and b) capital.

ARTICLE 24 (State Budget Proposal)

1. The State Budget proposal observes strict conformity with the economic-financial policy and the annual program of the Government.

2. The State Budget proposal is composed of the articles of its respective draft Budget Law and respective maps.

3. The budgetary maps referred to in paragraph 2 of this article comprise: a) global maps of revenue forecasts, expense limits, and deficit financing;

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b) maps of current and capital revenue forecasts, of central and provincial scope, classified according to organic, territorial, and resource source criteria;

c) maps of current expense limits, of central and provincial scope, classified according to organic, territorial, economic, and functional criteria;

d) map of capital expenses, of central and provincial scope, classified according to organic, territorial, economic, functional, and resource source criteria.

4. The Government also presents to the Assembly of the Republic, with the State Budget proposal, all necessary elements to justify the budgetary policy, namely:

a) the Government's Economic and Social Plan;

b) the preliminary balance of the execution of the State Budget of the current year;

c) the justification of the revenue forecast and the fixing of expense limits;

d) the demonstration of the global financing of the State Budget with discrimination of the main resource sources;

e) the list of all organs and institutions of the State, as well as all autonomous institutions, public enterprises, and local authorities;

f) the budget proposal of all organisms with administrative and financial autonomy, local authorities, and State enterprises.

SECTION V Presentation of the budget

ARTICLE 25 (Presentation)

The Government submits by September 30 of each year to the Assembly of the Republic the proposal of the State Budget referred to in paragraph 1 of Article 21 of this Law.

ARTICLE 26 (Approval of the State Budget)

1. The Assembly of the Republic deliberates on the draft Budget Law proposal by December 15 of each year.

2. Once the State Budget is approved, the Government is authorized to:

a) proceed with the management and execution of the approved State Budget, adopting measures considered necessary for the collection of forecast revenues and the realization of fixed expenses;

b) proceed with the capture and channeling of necessary resources, always taking into account the principle of the most rational possible use of approved budgetary allocations and the principle of best treasury management;

c) proceed with the opening of public credits to meet the budgetary deficit;

d) carry out credit operations by anticipation of revenue, to meet temporary treasury deficits.

3. Once the State Budget is approved, deputies and Committees of the Assembly of the Republic may not take legislative initiatives that involve an increase in expenses or a decrease in revenues.

ARTICLE 27 (Non-approval of the Budget)

1. If the proposal of the State Budget is not approved, the previous economic year is reinstated, with the limits defined therein, including adjustments verified during that year, thus remaining in force until the approval of a new State Budget.

2. The maintenance in force of the reinstated State Budget, under the terms of the preceding paragraph, covers the maintenance of the authorization for the collection of revenues and realization of expenses forecast therein, except those whose regimes would only remain in force until the end of the respective exercise.

3. The realization of expenses forecast in the reinstated State Budget must obey the principle of utilization by twelfths of the funds fixed therein.

SECTION VI Execution of the State Budget

ARTICLE 28 (Rules for execution)

To begin budgetary execution, the Government approves the provisions that prove necessary, without prejudice to the immediate application of the norms of the State Budget Law that are directly executable.

ARTICLE 29 (Execution of revenues)

The execution of revenues comprises the following three phases:

a) issuance and administrative procedure for verification of the occurrence of the fact generating the corresponding obligation;

b) settlement, calculation of the amount of revenue due and identification of the respective debtor;

c) collection, action of collecting, receiving, or taking possession of the revenue and subsequent delivery to the Public Treasury.

ARTICLE 30 (Realization of expenses)

1. The realization of expenses comprises the following three phases:

a) eligibility, administrative act of verification, registration, and commitment of the value of the charge to be assumed by the State;

b) settlement, determination of the value actually to be paid and issuance of the competent payment order;

c) payment or delivery of a sum of money to the holder of the expense document.

2. Expenses that are judicially recognized in the current exercise, belonging to previous exercises but not settled in them, are paid in the adequate rubric of the State Budget of that current exercise.

3. The realization of expenses under the regime of cash advances, called working capital fund, may be authorized, to meet expenses whose values are of small amount and for which the normal process of expense realization is dispensed with.

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4. It is incumbent upon the Government to approve, both the maximum limits for the expenses referred to in the

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previous paragraph, both the budgetary appropriations subject to this regime, as well as the regulation regarding their granting, application, and accounting.

ARTICLE 31 (Expenses Payable)

Regarding the period of the current fiscal year, the following rules must be observed:

a) expenses payable are those liquidated and unpaid until December 31;

b) expenses payable must be cancelled if they are not paid after one year has elapsed.

ARTICLE 32 (Cancellation of Expenses and Revenues)

1. The value of the cancelled expense reverts to its respective appropriation in the fiscal year.

2. When the cancellation of the expense value occurs after the closing of the respective fiscal year, the cancelled value is considered revenue of the year in which the cancellation takes effect.

3. The restitution of revenue collected improperly, when it occurs in the respective year of its collection, is carried out in that year, by cancelling the value in the respective budget line item.

4. The restitution of revenue collected improperly, when it occurs in subsequent years, is carried out in an appropriate budget line item for expenses of the year in which it occurs.

ARTICLE 33 (Liquidated and Uncollected Revenues)

The values related to contributions and taxes and other fiscal credits of the State, liquidated and uncollected within the originating financial year, constitute active debt and are incorporated into a separate account, at the end of the fiscal year, by public accounting.

ARTICLE 34 (Budgetary Amendments)

1. The amendments to the limits fixed in the State Budget are made by law, upon a duly justified proposal by the Government.

2. The Government may carry out budget increases in the State Budget, using, for this purpose, the provisional appropriation provided for in paragraph 3 of Article 13 of this Law, provided that they are duly justified.

3. It is also within the competence of the Government to redistribute funds within the limits established by the Assembly of the Republic.

4. The transfer of funds from one State body or institution to another must be treated in the State Budget as credit to the former and debit to the latter.

ARTICLE 35 (Periodic Information)

1. The Government provides semi-annual information on the execution of the Economic and Social Plan and the State Budget to the Assembly of the Republic, within 45 days after the semester.

2. The Government also provides quarterly information to the Assembly of the Republic on the execution of the State Budget, which must be published in the Official Gazette.

SERIES I — NUMBER 7

CHAPTER II Public Accounting Subsidiary System

SECTION I Organization and Competencies

ARTICLE 36 (Organization)

The Public Accounting Subsidiary System, abbreviated as SCP, comprises all State bodies and institutions that intervene in the processes of budget execution, collection, recording, monitoring, and processing of transactions capable of producing or that produce modifications in the State's Patrimony, and also covers their respective norms and procedures.

ARTICLE 37 (Competencies)

It is incumbent upon the bodies or institutions that make up the SCP:

a) to draft and propose norms, technical procedures, reports, and statements, as well as their respective methodology and periodicity, with a view to harmonizing and standardizing accounting;

b) to draft and keep updated the chart of accounts;

c) to carry out the execution of the State Budget;

d) to monitor and evaluate the systematic and timely recording of all transactions;

e) to draft the periodic information reports to be presented by the Government to the Assembly of the Republic;

f) to draft the General Account of the State.

SECTION II Accounting Bookkeeping

ARTICLE 38 (Object)

1. Public Accounting aims to produce and maintain records and evidence of transactions carried out by State bodies and institutions and their effects on the State's patrimony.

2. Accounting maintains analytical and synthetic records of the assets, rights, and obligations comprising the patrimony of the State bodies and institutions covered under Article 2 of this Law.

ARTICLE 39 (Principles and Specific Rules)

Public accounting respects, among others, the following generally accepted principles:

a) consistency, on the basis of which accounting procedures from one fiscal year to the next should not be altered;

b) materiality, according to which the information produced presents all relevant elements that allow for the monitoring of the use of public resources;

c) comparability, in accordance with which the recording of operations observes the norms determined throughout the life of the respective bodies or institutions, so that the data produced can be compared over time and space;

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d) timeliness, by which information must be produced in a timely and useful manner to support decision-making and management analysis.

ARTICLE 40
**(Digraphic Principle)**

The criterion used for the recording of administrative acts and facts, within the scope of SISTAFE, is the digraphic principle or the double-entry method.

ARTICLE 41
**(Recording Regime)**

The adopted accounting recording regime is the mixed regime, applying the cash regime for revenues and the commitment regime for expenses.

ARTICLE 42
**(Currency)**

The bookkeeping of administrative acts and facts is carried out in national currency.

ARTICLE 43
**(Accounting Statements)**

The Government prepares, at the end of each fiscal year, the Balance Sheet, Budget Control Statements, Statement of Results, and the Accounting Inventory.

ARTICLE 44
**(Depreciation and Reinstatement)**

All State patrimony is depreciated and reinstated in accordance with applicable legislation and generally accepted accounting rules.

SECTION III
General Account of the State

ARTICLE 45
(Object)

The General Account of the State aims to evidence budgetary and financial execution, as well as to present the result of the fiscal year and the evaluation of the performance of State bodies and institutions.

ARTICLE 46
(Principles and Specific Rules)

1. The General Account of the State must also be prepared with clarity, accuracy, and simplicity, so as to enable its economic and financial analysis.
2. The General Account of the State must reflect the observance of the degree of compliance with the principles of financial regularity, legality, economy, efficiency, and effectiveness in obtaining and applying public resources made available to State bodies and institutions.
3. With a view to reflecting the financial situation and the results of budget execution of State bodies and institutions, the General Account of the State must be prepared based on generally accepted accounting principles and rules.

ARTICLE 47
(Content)

The General Account of the State must contain complete information regarding:
a) revenues collected and expenses paid by the State;
b) financing of the budget deficit;
c) third-party functions;
d) balance of the movement of funds entered and exited from the State Treasury;
e) financial and patrimonial assets and liabilities of the State;
f) advances and their regularization.

ARTICLE 48
(Structure of the General Account of the State)

1. The General Account of the State must contain the following basic documents:
a) the Government's report on the results of budget management for the fiscal year;
b) the overall financing of the State Budget with discrimination of the status of financing sources;
c) the balance sheet;
d) the Budget Execution statements, comparing budgetary forecasts with collected revenue and those with liquidated and/or paid expenses, according to the classification provided for in paragraphs 1 and 2 of Article 20 of this Law;
e) the statement of results;
f) the notes to the financial statements;
g) the statement of financial assets and liabilities existing at the beginning and end of the economic year;
h) the annual consolidated statement of fund movement by treasury operations.

2. The Government presents, as an annex to the General Account of the State, the consolidated inventory of the State's patrimony.
3. The Government must also present, as an informational annex to the General Account of the State, a summary of revenues, expenses, and balances for each institution with administrative and financial autonomy.

ARTICLE 49
(Accounts of Autonomous Institutions)

Institutions with administrative and financial autonomy must deliver to the Ministry of Planning and Finance the information referred to in paragraph 3 of the previous article, by March 31 of each year.

ARTICLE 50
(Deadlines)

1. The Government must present the General Account of the State to the Assembly of the Republic and the Administrative Court by May 31 of the year following that to which the said account relates.
2. The Report and Opinion of the Administrative Court on the General Account of the State must be sent to the Assembly of the Republic by November 30 of the year following that to which the General Account of the State relates.
3. The Assembly of the Republic reviews and approves the General Account of the State, in the session following the delivery of the Report and Opinion by the Administrative Court.

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SERIES I — NUMBER 7

CHAPTER III
Public Treasury Subsidiary System

SECTION I
Organization and Competencies

ARTICLE 51
(Organization)

The Public Treasury Subsidiary System, abbreviated as STP, comprises the set of State bodies and institutions that intervene in the processes of programming, resource capture, and management of payment means, and also covers their respective norms and procedures.

ARTICLE 52
(Competencies)

It is incumbent upon the State bodies or institutions that make up the STP, namely:
a) to ensure financial equilibrium;
b) to administer financial and movable assets;
c) to draft financial programming;
d) to draft statistics on public finances;
e) to manage the single account;
f) to propose the formulation of public expenditure financing policy and provide for its execution;
g) to manage internal and external public debt;
h) to carry out and manage public credit operations.

SECTION II
Public Treasury

ARTICLE 53
(Object)

The Public Treasury, comprising the rights, guarantees, and obligations of State responsibility, aims to draft financial programming, disbursements, and payments related to budgetary and financial execution.

ARTICLE 54
(Principles and Specific Rules)

1. The administration of the Public Treasury is governed, among others, by the following principles:
a) treasury unity, according to which all public resources must be centralized with a view to greater management capacity, within the principles of effectiveness, efficiency, and economy;
b) treasury equilibrium, by which resource inflows must be equal to or greater than resource outflows;
2. The collection of all revenues must be carried out in strict observance of the principle of treasury unity.
3. Treasury unity covers all funds of fiscal and extra-fiscal origin and those resulting from legally authorized credit operations.

ARTICLE 55
(Single Account)

1. The Single Account is a pyramid-type bank account, with the necessary sub-accounts, through which both the collection and receipt of revenues and the payment of expenses are moved, regardless of their origin or nature.
2. The opening of bank accounts in which any State body or institution is the sole holder is prohibited.
3. In the construction of the Single Account, it is incumbent upon the Government to define and determine the most appropriate ways for its implementation, with a view to better treasury management and the superior interests of the State.

ARTICLE 56
(Public Debt)

1. Public Debt comprises financial obligations assumed by virtue of laws, contracts, agreements, and the realization of credit operations.
2. Public Debt is divided into:
a) Internal Public Debt, that which is contracted by the State with public or private law entities, with residence or domicile in the Country, and whose payment is due within national territory;
b) External Public Debt, that which is contracted by the State with other States, international organizations, or other public or private law entities, with residence or domicile outside the Country, and whose payment is due outside national territory.

CHAPTER IV
State Patrimony Subsidiary System

SECTION I
Organization and Competencies

ARTICLE 57
(Organization)

The State Patrimony Subsidiary System, abbreviated as SPE, comprises the State bodies or institutions that intervene in the processes of administration and management of the State's patrimonial assets and also covers their respective norms and procedures.

ARTICLE 58
(Competencies)

1. It is incumbent upon the bodies or institutions that make up the SPE:
a) to coordinate the management of the State's patrimonial assets;
b) to organize the register of the State's immovable assets;
c) to draft annually the consolidated physical inventory map and variations of the State's patrimonial assets;
d) to periodically compare physical inventories with their respective accounting values;
e) to propose relevant regulatory norms and instructions regarding the State's patrimonial assets.
2. The inventory and management of the State's patrimony is the responsibility of the entity where the patrimonial assets and rights are located, in accordance with current legislation.

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SECTION II
State Patrimony

ARTICLE 59
(Object)

The State Patrimony aims to coordinate and manage the State's patrimonial assets, organize information related to the inventory of said assets, and draft the respective inventory.

ARTICLE 60
(Principles and Specific Rules)

The State Patrimony is governed, among others, by the following principles and rules:
a) public domain assets and private domain assets for special use by the State are unseizable and inalienable;
b) the State's patrimonial assets are evaluated according to specific criteria to be fixed by the Government;
c) the acquisition and alienation of the State's patrimonial assets is carried out through public tender, with legal exceptions reserved;
d) the criteria and rates of depreciation and reinstatement of the State's patrimonial assets are subject to specific legislation.

ARTICLE 61
(Patrimonial Variations)

1. Patrimonial variations constitute acts or effects that produce alterations to the State's Patrimony, such as the obtaining and granting of credit, acquisition or alienation, and depreciation or appreciation of the State's patrimonial assets.
2. It is incumbent upon the Government to define the criteria for depreciation and appreciation of the State's patrimonial assets.
3. Any and all patrimonial variation must comply with legal determinations applicable to each case.

CHAPTER V
Internal Control Subsidiary System

SECTION I
Organization and Competencies

ARTICLE 62
(Organization)

The Internal Control Subsidiary System, abbreviated as SCI, comprises the bodies and entities that intervene in the inspection and auditing of the processes of collection, receipt, and use of public resources, and also covers their respective norms and procedures.

ARTICLE 63
(Competencies)

1. It is incumbent upon the bodies or entities that make up the SCI to carry out activities verifying the application of established procedures and compliance with legality, regularity, economy, efficiency, and effectiveness, with a view to good management in the use of resources made available to State bodies and institutions.
2. The Government, through the Minister who oversees the area of Finances, may submit State bodies and institutions to independent, punctual, or systematic auditing.

SECTION II
Internal Control

ARTICLE 64
(Object)

Internal control aims to:
a) supervise the correct use of public resources and the accuracy and fidelity of accounting data;
b) guarantee, through supervision, the uniform application of accounting rules and methods;
c) verify compliance with applicable legal norms and procedures.

ARTICLE 65
(Principles and Specific Rules)

Internal control is governed by the principles of independence and impartiality, as well as by the principles and rules of international auditing organizations applicable.

TITLE III
Final and Transitional Provisions

ARTICLE 66
(Liability Regime)

1. Officeholders, civil servants, and State agents and other public entities are financially, disciplinarily, criminally, and civilly liable in accordance with the law for infractions committed in the scope of the exercise of their budgetary or financial execution functions.
2. The State and other public legal entities are civilly liable for damages caused to third parties, in accordance with the law.
3. Authorities who order the receipt of any direct or indirect contributions, of whatever nature, not authorized by law, and officials who, by their own act or in compliance with superior orders, proceed to collect unauthorized contributions or taxes, or do so for an amount higher than due, knowing thereof, are punished with the penalty applicable to the crimes of extortion or arbitrary imposition of contributions, provided for in the Penal Code.
4. Any public official who, through negligence, commits an act contrary to or omits an act defined in this Law, will be subject to disciplinary action in accordance with the General Statute of State Civil Servants.
5. Without prejudice to the disciplinary or criminal liability applicable to the case, the State has the right of recourse against any public official who causes, by their act or omission, losses to the State.

104-(12)                                                                 SERIES I — NUMBER 7

ARTICLE 67
**(Regulation)**

1. It is incumbent upon the Government to regulate this Law within a period of 180 days from the date of its entry into force.
2. The Government must create the necessary conditions to, within a period of one year from the date of entry into force of this Law, initiate the implementation of SISTAFE.

ARTICLE 68
**(Entry into Force)**

This Law enters into force on January 1, 2002.

ARTICLE 69
**(Repeal)**

All previous legislation contrary to this Law is hereby repealed.

Approved by the Assembly of the Republic, on December 17, 2001,
The President of the Assembly of the Republic, **Eduardo Joaquim Mulémbwè**.

Promulgated on February 12, 2002.
Publish.
The President of the Republic, **JOAQUIM ALBERTO CHISSANO**.

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Price — 4 140,00 MT
NATIONAL PRESS OF MOZAMBIQUE