COCA: 23% of Budget Lost to Corruption
Parliament has revealed the embezzlement of over YR4 billion in current expenditures in the government’s budget. This was stated in a report issued by the Special Parliamentary Committee and the Central Organization for Control and Auditing, who were charged with reviewing the accounts. The violations were specifically found in the independent and supplemental budgets of special funds in 2005.
The report confirmed that those bodies did not institute the repeated recommendations of Parliament to reduce expenditure. This corruption demonstrates how the government incorrectly estimated its budget figures when it prepared both independent and supplementary budgets.
In terms of cash expenditures, the report indicated that the authorities are not able to exploit budgets, but that leaders of the authorities are keen to abuse current expenditures. The Committee also noted that these authorities have not been able to increase their revenues. This reflects a lack of coherence in revenue collection.
In terms of special funds, the report revealed that the aggregate of abused resources in 23 funds exceeded YR22 billion. This constitutes some 23 percent of the total budget funds (YR71 billion).
Corruption occurred in the Fund for Maintenance of Roads and Bridges, the Social Fund for Development, the Military Fund, and the Retirement Fund, all of which are under the auspices of the Interior Ministry. Also included in this list were the funds for Caring and Rehabilitation of Handicapped People and the fund for Encouraging Agricultural and Fish Production.
The report noted that some authorities’ incomes increased due to their investments in treasury bills and bank deposits. The report reveals that this increase of capital income is not a result of increased performance of those authorities, but of rising interest on treasury bills, as well as an increase in currency interest rates during 2005.
The authorities spend money freely because of their financial independence. There are no regulations governing the allocation of funds in expenses, wages or bonuses. The report suggested that a policy to rationalize expenditure should be enacted to prevent further embezzlement of public funds.
