IMF in a move to curb misuse of COVID-19 funds

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The International Monetary Fund (IMF) is putting in place measures to curb the misappropriation of coronavirus funds.

The world’s biggest monetary institution says in the wake of the COVID-19 pandemic, it is maintaining its commitment to address governance and corruption vulnerabilities in member countries.

“The IMF is working to balance the need for immediate COVID-19 financing against appropriate accountability and transparency to ensure, as best as possible, that financial help reaches those in need,” notes the world body.

IMF emergency financing is provided in upfront, outright disbursements, and IMF says there is much less scope for attaching traditional conditions.

However, the IMF says it is working on the following measures to promote transparency and accountability, and ensure its resources are used for their intended purpose:

Asking member authorities to commit in their Letters of Intent to ensuring that emergency assistance is used for the very urgent purpose of resolving the current crisis and not diverted for other purposes.

See to it that Letters of Intent are published by the member country and are also available on the IMF website.

“Assessing which public financial management, anti-corruption, and anti-money laundering measures we can ask members to put in place without unduly delaying urgently-needed disbursements,” adds the IMF.

For example, the IMF has asked member countries requesting emergency assistance to commit to (i) enhanced reporting of crisis-related spending.

IMF is also calling member states to undertake and publish independent ex-post audits of crisis-related spending.

This also include ensuring procurement transparency by, for example, publishing procurement contracts.

IMF adds that preventing conflicts of interest and corruption can be achieved by publishing the beneficial ownership information of firms awarded procurement contracts.

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One Response to IMF in a move to curb misuse of COVID-19 funds

  1. Lelo lelo, Thank You IMF to put these measures. It can go into campaigns.

    Jordan chulu
    May 13, 2020 at 1:51 am
    Reply

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