By: Nghiinomenwa Erastus
Lack of fiscal transparency is a breeding ground for corruption and incompetence, whether in the public or private sector, revealed U.S. Chargé d’Affaires, Jessica Long.
She spoke during the launch of the Institute of Public Policies Research, book on fiscal transparency in Namibia – Keep Your Eyes on the money.
Long said she had observed the relationship between fiscal transparency and corruption throughout her career in countries worldwide – including the USA.
She said weak fiscal transparency could enable corruption and misappropriation of public funds, erode public trust in the government.
“Eventually contribute to cultural tolerance of dishonesty under the excuse that ‘everyone is doing it,” explained Long.
Moreover, a lack of transparency presents a threat to democracy and the rule of law worldwide.
After all, state revenue comes from taxpayers, businesses, ordinary citizens (via standard taxes on goods and services), public services, and regulations.
Democratic states, in particular, must put governance mechanisms in place to ensures that public finances are managed sensibly and in a transparent and accountable manner.
Long has acknowledged that increasing fiscal transparency is a challenge for all governments – no matter the country’s size, age, or wealth.
However, she noted that is an exercise that all democracies must continuously undertake to stay healthy and accountable to their citizens.
Tasking the two-state, established democracies like the United States and Namibia cannot rest on their laurels.
“We must constantly push ahead to ensure greater transparency and fewer footholds for corruption or poor use of public resources,” said Long.
She added that it is ultimately up to the citizens of Namibia, the media, the government, civil society, and others to ensure the implementation of IPPR researchers’ recommendations.
MOF AND PARLIAMENT ARE INADEQUATE
Researchers Dietrich Remmert, Martha Nangola, and Ndeshi Fikameni highlighted in the book that effective and efficient management of state finance constitutes a crucial duty of any government.
“Without functional public services would severely hamper the society’s overall economic and social development,” the researchers wrote.
Moreover, the citizens would see little value in contributing to the government coffers.
According to the researchers, the finance ministry and parliament head competent fiscal management with resources management and oversight in the public sphere.
The researchers’ analysis has shown that the mechanism Namibia is currently utilizing is inadequate in ensuring high-level transparency and accountability regarding the use of public monies.
“There is adequate evidence that this issue is also affecting Namibia’s public sector,” the book read.
The book highlighted that reforms are called for on how states manage and account for their public finance.
One approach is to make government budgeting processes more transparent and inclusive- a reform advocated by the International Budget Partnership (IBP).
Secondly, to involve the supreme auditor more in the fiscal management, various states developed and expanded the audit activities of their respective supreme audit institutions.
The researchers have found that international evidence suggests that public and stakeholders engagement opportunities improve governance outcomes in areas of public concern.
However, Namibia and other countries score poorly on fiscal transparency and accountability based on the IBP’s Open Budget Survey.
Furthermore, the book has indicated that Namibia performed poorly on budget openness, but the country is also doing badly in fiscal oversight.
The book revealed that stakeholder engagement opportunities in Namibia on public finance management and oversight are minimal.
Moreover, they primarily consist of essential consultation, the researchers found.
As for public engagement, in general, it is non-existent apart from occasional public parliament committee meetings questioning representatives of public entities on how used the money.
IPPR has revealed that they have done a study, and there is apparent demand among stakeholders for meaningful public engagement.
“There is an urgent need for the OAG, MoF, and the Parliament to improve transparency and accountability with regards to public finance,” the researchers stated.
The researchers have also recommended that the country auditing body, MoF, and parliament raise more awareness on the importance of transparency and accountability in fiscal management.
The legislators also advised considering mechanisms that could compel public entities to improve fiscal management and controls.
They added that a national priority should be an overall focus on raising competence level, accountability, and ethical conduct within the public service. Email: erastus@thevillager.com.na
