By Judith Ugwumadu | 23 September 2014
The European Commission must focus its budget support programme for post-disaster reconstruction on public finance management functions and reforms, auditors said after finding some projects designed to stabilise the economic and social situation in Haiti were performing poorly.
A report published today by the European Court of Auditors revealed that European Union support for rehabilitation after the 2010 earthquake in Haiti was well designed overall, but the programmes were not implemented well and the link between relief, rehabilitation and development was insufficient.
The auditors stated: ‘In common with other donors, the commission faced serious obstacles in its efforts to support rehabilitation. It was confronted by the difficult challenge of having to manage its aid in partnership with weak national authorities while seeking to ensure rapid aid.
‘However, the commission could have improved its management of some factors under its control.’
Of the 13 Haiti aid programmes examined, the auditors found 10 had delivered, or were likely to deliver their planned outputs, although almost all experienced delays. Three programmes achieved limited progress, including the general budget support (GBS) programme.
This programme provided Haiti €44m for budget support and a further €3m for complementary actions, such as technical assistance or support for the production of national statistics.
According to ECA, the programme provided much-needed Treasury resources to help rehabilitate essential state functions in the aftermath of the earthquake. But the finance agreements were not properly disbursed because of slow progress in economic governance.
Auditors also said unsatisfactory progress in PFM reform meant no further disbursements were made by the commission and other budget support donors in 2013.
The report added: ‘Some progress was underway on PFM, such as the creation of a unique Treasury account or the establishment of 10 public accountant posts.
‘Nevertheless, more than two years after the start of this second 10th EDF [European Development Fund] funded GBS programme, there was not yet an appropriate and realistic PFM reform programme with well-defined and accepted priority actions and milestones.’
The ECA recommended that during operations in the context of a post-disaster or fragile situation the commission should, when providing budget support, focus on PFM functions and reforms.
Where appropriate, it said, the commission should set out shorter term measures for safeguarding EU funds against waste, leakage and inefficiency.
Other ECA recommendations included: improved risk management and the adoption of a common strategy to ensure greater synergy between emergency aid, rehabilitation and development.
