The Ministry of Finance has clarified that the $18.5 million held in M-PAiSA and MyCash accounts at the end of July 2022 was retained to support future Government digital payments, with the balance now reduced to about $3.18 million.
Permanent Secretary for Finance Shiri Gounder said the funds had subsequently been used for programs including inflation mitigation payments, bus fare subsidies and back-to-school assistance.
The clarification follows concerns highlighted in the Compliance Audit Report over the $18.5 million remaining with the two service providers after the completion of a Government assistance program.
Mr Gounder said M-PAiSA and MyCash had become important components of Government’s payment infrastructure, with almost $500 million disbursed through the platforms since 2020.
“Given that M-PAiSA and MyCash have become a key feature of our payment platform, we need to ensure that sufficient cash balances are maintained in these digital wallets to meet our payment needs,” he said.
“This is same as how Government maintains funds at the commercial banks for its daily operations.”
Mr Gounder said the digital wallets effectively served a similar purpose to bank accounts used for Government payments.
“Since the end of July 2022, Government has used the M-PAiSA and MyCash funds for payment of inflation mitigation payout, bus fare subsidy and back to school support,” he said.
“The current balance as of July 2026 stands at around $3.18 million.”
The Standing Committee on Public Accounts had noted in its review of the Compliance Audit Report that $18,511,428 remained with the service providers following the completion of the program.
The audit said the Ministry had advised that the Permanent Secretary approved retaining the funds for future initiatives, but auditors could not sight documentary evidence authorising the retention.
Mr Gounder, however, said proper controls and records were maintained in accordance with Government’s financial rules and regulations.
“Records are well maintained and easily available for reconciliation and audit verification and a standard operating procedure exists as to how digital wallet funds will be utilised and captured in the Government accounts,” he said.
He also said the Ministry had raised the matter with the Office of the Auditor-General during the audit process.
“The Ministry had clarified the above with the Office of the Auditor-General during the audit exit meeting, however, it seems that this was not explained appropriately in the audit report,” Mr Gounder said.
