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Viewing cable 08BAMAKO236, MALI'S INPUT ON REPORT ON FISCAL TRANSPARENCY

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Reference ID Created Released Classification Origin
08BAMAKO236 2008-03-06 08:54 2011-08-25 00:00 UNCLASSIFIED Embassy Bamako
VZCZCXRO6971
RR RUEHMA RUEHPA
DE RUEHBP #0236/01 0660854
ZNR UUUUU ZZH
R 060854Z MAR 08
FM AMEMBASSY BAMAKO
TO RUEHC/SECSTATE WASHDC 8845
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHLMC/MCC WASHINGTON DC 0110
UNCLAS SECTION 01 OF 02 BAMAKO 000236 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ECON PREL ML
SUBJECT: MALI'S INPUT ON REPORT ON FISCAL TRANSPARENCY 
 
REF: STATE 016737 
 
BAMAKO 00000236  001.2 OF 002 
 
 
In response to reftel, Embassy's input on the 
Congressionally-mandated report on fiscal transparency in 
countries receiving USG assistance is provided: 
 
-- Is the host country's budget made public? 
 
Yes, it is made public annually. 
 
-- If so, through what medium? 
 
The GOM publishes a complete volume following the approval of 
the budget at the National Assembly. 
 
-- Are all revenues and expenditures included in the 
publicly-available budget? 
 
Yes, they are included in the budget. 
 
-- How meaningful and accurate is the information? 
 
We believe that it is meaningful and accurate; the IMF must 
approve the drafted document prior to its adoption. 
 
-- If a country is weak on fiscal transparency is it due to 
capacity or lack of will? 
 
The higher levels of the Malian government have expressed a 
will to improve transparency, but complain of a lack of 
capacity to provide oversight over the entire process. 
USAID's programs help in capacity building.  Also, the GOM 
would like to conduct audits more frequently, but lacks the 
trained accountants and resources.  The Auditor General has 
requested more training on several occasions to improve their 
services. 
 
-- Are there any USG programs to strengthen the host 
country's capacity to develop sound fiscal policies and that 
support transparency and good governance? 
 
USAID Mali's Shared Governance Program works directly with 
elected mayors, local government officials and civil society 
organizations to develop financial management systems, 
including tax revenue tracking, budget development and 
tracking, and accounting systems.  The approach uses local 
radio stations to reinforce transparency and ensure that 
residents of the communes are fully aware of how their taxes 
are being used.  The program has already demonstrated some 
success in increasing tax revenues for local communities. 
 
-- Are there other donor countries or multilateral 
institutions providing assistance in these areas? 
 
The Canadian and German development agencies have similar 
programs (based largely on the USAID Shared Governance 
model).  Other donors, including the Dutch, European Union, 
French and the World Bank support Malian financial management 
programs through budgetary support. 
 
-- Has the country volunteered for the IMF to report on the 
country's compliance with standards and codes covering fiscal 
transparency? 
 
Yes, the IMF reported on Mali's compliance with standards 
covering fiscal transparency in February 2002. 
 
The IMF reported that "Mali has made progress in recent years 
in increasing the transparency of government operations.  The 
legislative base underlying the budget is very extensive. 
Some modern developments in budgeting, such as the 
preparation of program budgets that focus on government 
objectives, have become institutionalized as part of budget 
preparation (although the organic budget law has not been 
modified to include the tendency toward focusing on budget 
outcomes).  The budget document presents a clear description 
of the fiscal and economic outlook, although a full-fledged 
medium-term budget framework has not yet been developed. 
Mali's Finance Committee of Parliament plays an important 
role in examining budget estimates. 
 
"Good quality monthly data on central government expenditures 
on a payments orders basis are available within ten days 
after the end of a month.  However, longer delays are 
experienced in obtaining fully comprehensive fiscal data, 
especially for foreign-financed projects.  Most periodic 
fiscal reports are not published, but interested observers 
generally may obtain them.  Internal audit institutions are 
quite effective -- they have revealed past irregularities, 
which are being addressed by a high-level anti-corruption 
committee.  In contrast, the external audit agency is 
particularly weak and annual accounts of government are 
 
BAMAKO 00000236  002.2 OF 002 
 
 
examined with many years' delay because of insufficient 
resources."  (Note: the Auditor's General office was created 
in 2004, following this report, and has been more effective 
at uncovering irregularities.) 
 
The Malian authorities state that they are committed to 
improving fiscal transparency further.  The IMF proposes 
that, apart from speeding up the production of monthly fiscal 
reports, efforts should focus on four areas, prioritized as 
follows: (i) establish an effective external audit office and 
further strengthen internal audit; (ii) improve further the 
budget preparation process; (iii) address weaknesses in the 
legal framework governing the budget; and (iv) provide the 
public with more information on government finances. 
MCCULLEY