IMF audit still shows cracks

At first glance, the International Monetary Fund’s (IMF) May report on government accounting practices in Lebanon reads almost as one would expect: While the ministry of finance, and ministries in general, are making measured “progress” towards meeting internationally recognized standards, significant problem areas remain.
Thus, even as the IMF pointed to several positive steps taken in recent years – including new budget classifications that drill down on expenses, regular fiscal reports, a computerization of records and a centralization of accounts at the Treasury – the world body said flatly that Lebanon still falls short when it comes to multi-year budget projections, independents auditing and, perhaps most significantly, the inclusion of otherwise off-budget items like the Council for Development and Reconstruction.
However, as one top level ministry of finance official pointed out, despite all the bad news, it is important to note that the IMF was specifically asked by the Lebanese government to evaluate the countries finances – a move which means that the country will make the recommendations and analysis publicly available.
“Look, nobody would have expected an excellent report,” said the official. “By all means there are problems in our public expenditures.
“But you have to realize that we asked for this. We identified the problem areas for the IMF team in order to make it is clear that the MoF is disclosing a lot of things all the time and that we have the intentions to reform.”
What’s more, the official noted, the 2005 budget that was submitted a few days before the assassination of MP Rafik Hairi, actually addressed a number of problem areas identified later in the May IMF report, including the addition of CDR municipalities, tobacco revenues and Electricite du Liban to the budget framework
“We didn’t accomplish everything…. A multiyear budget and a budget process where ministers cannot easily amend the rules will both take a new law. But an external audit is in the works, as one example, and I would generally say that it was a budget which employees, for the first time, actually wanted.”