Covid-19: FMO launches initiative to monitor partners’ support to Mozambique

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Covid-19: FMO launches initiative to monitor partners’ support to Mozambique

2:50 CAT | 09 Jul 2020

File photo: Lusa

The Budget Monitoring Forum announced yesterday the launch of an initiative entitled “Response to Covid-19 with the Accounts Right”, a strategy that aims to ensure that the support the country is receiving in the face of the pandemic “really reaches the most needy”.

“With the initiative, the Budget Monitoring Forum [FMO] will assess the coherence of Government intervention within the scope of the response to Covid-19 strategy, including the monitoring of procurement processes and the tracking of public expenditure in the provinces and in districts,” a note distributed by the NGO yesterday (Wednesday 08) reads.

At stake are amounts that will be made available to the country by international partners in the face of the Covid-19 pandemic, including a loan of US$309 million (almost €273 million) from the International Monetary Fund (IMF).

The IMF loan, which the country has already received, represents about half of the US$700 million financial support Mozambique expects to receive from partners in the fight against the pandemic caused by the new coronavirus.

The FMO, which brings together several civil society organisations, demands a space for the monitoring of funds.

The platform met the IMF in May to discuss mechanisms to ensure the Mozambican government’s accountability in managing the loan, after the NGO sent a letter to the international body.

During the meeting, the IMF clarified that the agreement with the Mozambican government for the loan includes the publication of large public procurement contracts, and the carrying out and publication of audits on expenses incurred, stating that the rest of the process is the government’s responsibility.

Representatives of Mozambican civil society organisations expressed their dissatisfaction, stressing the need for an external inspection of public tenders.

“The participation of civil society in monitoring the response to Covid-19 is essential, not only for the measures adopted by the IMF to be effective, but also to stimulate an environment of good governance, vital for improving trust in the government-cooperation partner relationship,” the note adds.

The government asked partners for support on March 23 in Maputo, to cover the fiscal deficit caused by the pandemic in the 2020 State Budget (OE), as well as to finance the fight against the disease and provide support to the poorest.

IMF support will be provided through the rapid credit facility (RCF) and an additional US$28 million through an IMF grant from the Catastrophe Containment and Relief Trust.

In its announcement on April 24, the IMF clarified that “the RCF resources will fall due only after the production, export and tax revenues of liquefied natural gas have started”.

The IMF also takes into account the government’s promises to publish audits on the use of funds and relies on the Bank of Mozambique’s progress in improving management and auditing capacities, according to recommendations made by a mission in December 2019.

Source: Lusa