Follow the money: how we helped establish a watchdog in Mozambique

Democracy can help contrast corruption and enable fair distribution of resource by making information about government accounts available to the public. This is why we are working with the parliament of Mozambique to help them monitor spending.

The country is developing very rapidly by tapping into a wealth of natural resources such as gas. Revenues must be accounted for and used wisely to improve the lives of Mozambicans.

WFD is uniquely placed to deliver high quality technical support in this field:

  • Our work to help establish parliamentary budget offices in the Western Balkans is one of our greatest achievements to date and encouraged other countries to adopt similar initiatives.
  • We partnered with the Scrutiny Unit in the Westminster Parliament and the Financial Scrutiny Unit in the Scottish Parliament to share UK experience providing technical analysis.

The importance of setting up a body to monitor public money in Mozambique was identified in various evaluations, especially following the International Monetary Fund debt scandal that emerged in 2013.

Initially, the office will focus on providing technical analysis of the Budget as well as studies on national economy issues including public debt.
At the centre of our approach is encouraging learning between similar institutions that WFD helped establish over recent years.

Practices and expertise from countries such as the UK are not all immediately replicable and, for new watchdogs to succeed, a change in culture is necessary. This requires time and support from other institutions nationally and internationally.

“Many parliaments in the world have this technical support mechanism and this leads to positive parliamentary performance in the oversight of public finances, so I think that Mozambique is not an island and has to be part of the world.”

Moisés Mondlane, Technical Cabinet staff

In April, we brought together the Serbian Parliamentary Budget Office and the technical unit responsible for economic analysis in the legislative assembly of Mozambique for a workshop in Maputo.

Comparing notes with Serbian colleagues was something the Mozambican experts found very useful. Abdala Luís, a local trainee with the technical unit commented: “Our colleague from Serbia has shown us the main ways to produce quality analyses that will impress in a positive way our MPs and make us a credible unit. We learned that infographics are the best products to show our MPs; they do not have much text, instead focusing on graphics and some description that is appropriate for MPs’ use, as Members do not have time to read much.”

No matter where in the world you are working on financial analysis, similar challenges emerge. As Nenad Jevtovic from the Serbian parliament explains: “A common problem is how to attract the attention of MPs”. Crunching numbers submitted to parliament for approval in a timely manner is also very important to the success of newly established budget offices.

Serbian researchers helped their peers by suggesting a possible way forward: “It is very important to work step-by-step. In the first five months [of the programme], the Technical Cabinet should develop basic reports and infographics on budgetary analysis. After five months trainees will start to prepare detailed analysis on fiscal and economic issues,” Mr Jevtovic explained.

“Our goal is to provide technical support to the Committees to effectively carry out the public financial oversight of the Executive,” commented Mr. Atanásio Chacanane, Director of the Technical Cabinet. “The Technical Cabinet will provide better service to Members and its impact will benefit Mozambican society,” he continued.

Moisés Mondlane, staff of the Technical Cabinet added: ‘This unit will help MPs make sure that allocated resources are being used properly. Many parliaments in the world have this technical support mechanism and this leads to positive parliamentary performance in the oversight of public finances, so I think that Mozambique is not an island and has to be part of the world.’

The WFD Mozambique mission, which helped establish a Parliamentary Study Centre in 2011, is now focusing on support for Mozambican parliamentary staff to help legislators follow the money and in this way, help all ordinary Mozambicans benefit from economic growth.

(Photo: Nenad Jevtovic, a researcher from WFD supported Parliamentary Budget Office in Serbia, shares his experience providing analysis to MPs with counterparts in Mozambique.)
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Moving Mozambique away from its violent past

A legislative sector approach can help move Mozambique away from its violent past

By George Kunnath, WFD’s Regional Director for Europe and Africa

The legacy of the independence struggle and subsequent civil war in Mozambique still influences and shapes many aspects of its governance. The signing of the Rome General Peace Accord which ended the civil war in 1992 was supposed to bring an end to the war and start the process of healing the country. The 1990 constitution provided for a multi-party state and paved the way for the 1994 elections. The 2005 constitution went further, providing for the establishment of provincial assemblies. These, however, have limited powers over provinces’ administration, which is overseen by central government appointees. The main strength of the Provincial Assembly is its power to approve the Provincial Government’s programme and oversee its implementation.

According to the constitution, Provincial Assemblies should have been established within three years of the constitution’s adoption. Yet it was not until 2009 that Mozambique had its first elections for Provincial Assemblies. The ten new assemblies were underfunded, ill -equipped and their staff lacked training and skills to adequately support their members. Most of the assemblies still haven’t got a permanent home, but rent space from other government departments.

They also don’t have the technical skills to effectively scrutinise the Provincial Governments’ programmes and budgets. They lack the necessary support needed to conduct effective oversight. All Provincial Assembly members are part-time (except the Assembly President). Some tend to hold full-time jobs in the public sector – the very institution they are supposed to oversee.

The assemblies are also hampered by the vast geography of each province, compounded by poor transport infrastructure, which makes the task of oversight very difficult. However, it is important to recognise that provincial assemblies do hold a key to ensuring political representation in Mozambique. Their significance is only likely to increase as Mozambique goes down the route of decentralisation.

Since 2009, the relationship between the two main parties in Mozambique has continued to deteriorate. In 2013, Mozambique National Resistance (RENAMO) leader Alfonso Dhlakama revoked the 1992 Rome peace agreement and returned to the bush. Former president Armando Guebuza and Dhlakama negotiated a new peace agreement that would secure the 2014 elections when RENAMO succeeded in winning three provincial assemblies – but claimed victory in six.

They subsequently introduced a constitutional amendment which would have allowed for devolution of political powers to provinces. The proposed amendment would allow the winning party to appoint provincial governors. Having had the constitutional amendment defeated in Parliament, RENAMO threatened to take control in those provinces by force. The dominant Mozambique Liberation Front party (FRELIMO) responded to the threats by attempting to disarm RENAMO. The country has since seen an increase in armed conflict between the two parties.

Mozambique has had steady economic growth and is one of Africa’s fastest growing economies following the recent discovery of new natural resource deposits. The country still remains one of Africa’s poorest nations and can ill afford another protracted civil war. The population is also wary of further conflict after the last war. Citizens would like to see their leaders demonstrate greater political maturity in negotiating peaceful solutions.

In this tense political context, it is important for the donor community and democracy partners to bring the focus back to making the institutions of Mozambique’s democracy work effectively and responsively to the citizen’s needs. It equally importantly needs to demonstrate that the decentralised legislative structures at national, provincial and municipal levels can function and bring about equitable levels of development across the country.

For this to happen the donor community must consider working together to support a single legislative sector initiative to strengthen the provincial and national assembly. Mozambique’s neighbour South Africa is a great example of how a sectoral approach has helped to develop national and provincial legislatures. A sectoral approach also provides value for money and looks holistically at the long-term developmental needs of the growing legislative sector.

The Mozambican constitution also requires the President of the Assembly of the Republic to promote institutional relations between the Parliament and the Provincial Assemblies. The current President does this through the Speaker’s Conference, a meeting between the presidents of the provincial and national assemblies. This forum could be made more effective and play a much more important role in guiding the legislative sectors development.

Another plus for the sectoral approach has been the establishment of the parliamentary training centre, Centro de Estudos e Formação Parlamentar (CEFP), in 2013 with the support of WFD. The Centre’s new strategy is to encourage greater sharing of experience between the assemblies and support ongoing capacity building.

Finally, the donor community must explore ways to encourage the development of the institution of the opposition within assemblies. One cannot expect to develop mature opposition parties without supporting them with the research and skills needed to develop effective policies or to hold the government to account. Donors need to examine the current level of support provide to party factions in parliament and the provincial assemblies. Respecting the role that the opposition plays in an effective assembly is an important part of the culture of a mature democracy.

Armed conflict should never be an option in a democracy.

Photos:

George Kunnath, Regional Director Europe and Africa visits the construction site of the new Maputo Provincial Assembly in Matola accompanied by the Assembly’s President, Joao Muringano Matola.

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Four presidents, one challenge: The fight against corruption in 2016

By George Kunnath, WFD’s Regional Director for Africa and Europe

Many viewed the dismissal of Tanzania’s anti-corruption chief last month as a sign that new president John Magufuli is determined to make progress in tackling the plague of institutionalised corruption. He’s not alone: Mozambique, Nigeria and Ukraine also have new leaders prepared to confront this enormous challenge head-on. But Filipe Nyusi, Muhammadu Buhari, Petro Poroshenko and Magufuli face a tougher battle than they might care to admit – and should look to strengthen their parliaments if they want to accelerate progress.

I’ve travelled to all these countries in recent months and have seen first-hand how much the stakes have been raised. Expectations are high because rising levels of corruption within the state have been matched, in recent years, by a new mood of anticipation that something will change.

These four leaders have arrived at this point of reckoning because of a number of factors. Firstly, their population is far more educated and connected through social media than ever before. While corruption was widespread in the past, it was easier for those in power to hide the extent of the problem. Nowadays freedom of information legislation, freer press, social media, the internet and television have brought the realities of the scale of the problem into the average citizen’s home.

Secondly, their societies have become more integrated into the global community. Their citizens travel abroad and return home wondering why their country’s leaders can’t be held to higher levels of transparency and accountability. People are using terms like ‘global standards’ and ‘European values’. They are also able to do more analytical comparisons. Their citizens and civil society organisations are asking why a neighbouring country can build better roads at half the cost as their government’s latest road projects. They’re less trusting of the answers being provided by their governments.

Societies that once applauded the corrupt as smart and resourceful businessmen are now looking for new leaders and role models with values of integrity and accountability. Civil society continues to demand that people holding public office declare their personal assets. How politicians respond to the declaration process is becoming an indicator of personal integrity.

Thirdly, the mono-economies which flourished under oil, gas or natural resource revenues have come crashing down with the drop in global oil prices. It was easy to overlook the cost of corruption when there was significant wealth to pave over the losses; with the oil price halved, governments have to use every dollar wisely. Nigeria has just introduced zero-based budgeting which will force every department to cost and justify every expenditure. This exercise should save the state millions in wasteful excesses. After hearing that some audit queries have remained unanswered for years, the president ordered all ministries to respond to queries within 24 hours.

Fourthly, presidents whose administrations were seen as highly corrupt have been replaced. In Tanzania the ruling CDM retained power yet again, but their reputation was so badly damaged that the party fought their campaign by promoting their presidential candidate and his name above the party brand. Most people will watch the new president to determine if he has the power to reform the party or whether the party elite will be allowed to continue their old practices. So far the signs are positive and the average Tanzanian is optimistic. Magufuli is seen as someone who is closer to the people and is likely to withstand the influences of the handful of wealth elite that control large portions of the economy.

With all this momentum behind pressures for change, surely there’s a case for optimism?

It’s true there are reasons to be cheerful – but we shouldn’t forget that breaking from the past is going to be hard for all of these leaders.

In many of these countries the laws necessary to fight corruption are either outdated or non-existent. But they are essential to prevent the loopholes by which criminal activity continues. In Ukraine, Poroshenko recently signed a new law on party funding, hoping to break the link between the oligarchs and political parties by introducing state support to parties. This is a significant development to reduce the influence that the oligarchs have over elected officials.

For the last 12 years Nigeria has been trying to pass an Audit Law that would provide the legal framework for the Auditor General to publish his work quickly and effectively. There are expectations that the new parliament will finally pass this law, which has already made it through its first reading in the House of Representatives. The indication is that there is political will to see the bill become an act.

Having the laws on the statute book may not change much, as the bad cultures which need changing are often deeply embedded. Laws are often wilfully ignored with impunity. Unless these new leaders swiftly develop precedents and make clear statements about their expectations, the old culture will resurface preventing any chance for long-term reform.

Often it’s a people problem. In many cases the previous presidents ensured their supporters were placed in positions of influence to protect the interests of the outgoing government. Replacing these figures can be complex, as they are able to undermine the new government.

Having the desire to make the change but lacking a decent alternative will be a challenge, too. In Mozambique low skill levels within the administration remain an obstacle to driving through reforms. Ill-equipped ministerial officials are left to negotiate with experts from global corporations rushing to exploit Mozambique’s resources. The parliament should scrutinise these complex deals, but it too lacks expertise.

Parliamentarians also have a choice to make in these countries. They must decide to consciously reposition themselves on the side of the people and support institutional reforms. Parliaments have to lead from the front, demonstrating a higher level of transparency and openness in their affairs. If the integrity of the leaders who create the laws is in question, how likely is it that the people will respect these laws?

One way that parliaments can lead is by establishing transparency and openness committees like the one established in the Kosovan Parliament. This committee consists of members, parliamentary staff, civil society, media and government officials who are looking at the challenges of making the parliament more open and determining positive steps that can be taken.

It goes without saying that we wish Presidents Nyusi, Buhari, Poroshenko and Magufuli all the best as they forge their presidential legacy. Their decisions – including the extent to which they empower their parliaments to do this work for them – will determine how they are assessed in the history books, however.

These four leaders, elected on a promise to tackle corruption, all realise their legacies will be determined by how they tackle the problem. They have pledged to combat those who divert state resources away from development into the hands of a few elites, and will be judged on their results. Let’s see how they do in 2016.

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