Wasting public funds: perception of the Local Authorities

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Publishing date: Wednesday, 03 June 2015
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Abstract

In 2010-2014, Moldova’s Court of Accounts issued 46 decisions based on its audit reports aimed to evaluate the management of public funds and assets by local authorities of level I and II from over 20 districts of the country. Wrongdoings identified in these reports address the following four topics:

  • Administration of budget revenue at rayon/district level;
  • Administration of budget expenditures at rayon/district level;
  • Management of public assets and ensuring its integrity;
  • Bookkeeping and financial reporting.

It is important to note that out of the total annual value of irregularities identified by the Court in its reports of about 8 billion MDL, more than a third were committed by local authorities, while the type of irregularities remained virtually unchanged during the last five years. At the same time, the level of compliance with the Court of Accounts recommendations from local authorities has not seen any significant evolution, remaining at around 40% of all recommendations.

According to answers from questionnaires distributed to local authorities, the main causes of irregularities related to the management of public funds occur most often due to the lack of competence in managing incomes and expenditures and the public assets, inconsistency of the legal framework, lack of a clear separation of responsibilities between local stakeholders and to corruption.

 

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Tags: Natalia Chitii

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