Solomon Islands : IMF concerned with lack of transparency over CDF
Quoting the Island Sun newspaper – 31 July 2018
“THE International Monetary Fund (IMF) has expressed concern over the lack of transparency around the Constituency Development Fund (CDF).
“This is the second time the IMF raised concern about the fund, largely contributed to by the Republic of China (Taiwan).
“A team from the IMF has been in the country holding discussions on the 2018 Article IV Consultation.
“Announcing some of their key finding, team leader Mrs Alison Stuart, said what the CDF is spent on and how well this fund is spent is not clear to the people.
“Stuart said while it is important that this fund helps rural areas, it’s hard to know how effective it is being used. IMF concerned with lack of transparency over CDF.”
“She said greater transparency of the CDF would improve accountability and help identify remaining gaps in the provision of services to the rural areas.
“Stuart encourages the government to follow principles that are already set out by the Commonwealth.
“ Among other things, these principles include transparency of fund and accounting for how the fund is used. She said following Commonwealth principles can help everyone to understand if this fund is utilised well.
“Stuart said this will help provincial, national and donors to see what level in the service provision gap that needs to be lled. “Since there is no transparency in this fund and so it is dicult to see how fund is used,” Stuart said.
“She said if there is transparency, issues around how funds are used can be alleviated. CDF is used in other economy. It is an alternative method of delivering services to rural areas.
“This fund is higher than what goes through the provincial government. Stuart said the CDF Act needs to be passed in parliament so as to help address some of the issues.”
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