Financial Crime World

NGOs Anticipate Anti-Corruption Strategy to be Finalized in 2019

YEREVAN, Armenia - As development partners continue to support governance activities in Armenia, NGOs are expecting the country’s Anti-Corruption Strategy and Action Plan to be finalized and published by the end of this year.

Development Partners Support Governance Initiatives

According to a recent report by the Asian Development Bank (ADB), many governance initiatives supported by development partners include anti-corruption aspects. However, there is no formal forum for development partners and the Government of Armenia (GoA) to discuss these issues, leading to bilateral discussions and thematic group meetings.

ADB’s Assistance Program for Armenia

The ADB’s 2019 assistance program for Armenia consists of 21 separate operations, with road transport, energy, and urban transport being the main sectors. The bank’s use of country systems is “partial,” meaning it is used for budgeting and treasury functions but not for accounting and reporting.

Governance Risks and Risk Management Plans

A summary of governance risks and risk management plans highlights 25 major risks, with 11 considered “high-risk.” Mitigation actions and related indicators are proposed to address these risks.

Focus Areas for Operational Assistance

  • Strengthening internal audit functions and payroll controls in public finance management (PFM)
  • Supplementing the e-procurement system with a new unit price database module
  • Supporting the GoA in preparing a diagnostic to assess anticorruption activities and capacities

Need for Continued Support

The report emphasizes the need for continued support for policy reforms and institutional strengthening in areas such as:

  • Public finance management (PFM)
  • Public procurement
  • Anticorruption
  • Separating business and politics

Sector Assessments

Brief sector assessments have been prepared by the ADB for its four priority sectors:

  • Road transport
  • Urban transport
  • Urban infrastructure
  • Education

These assessments provide preliminary overviews of governance issues in these areas, including main challenges, relevant government strategies, external assistance provided by the ADB and other development partners, and selected results from the ADB’s Country Partnership Strategy (CPS) 2014-2018 final review.

Conclusion

The report concludes that the ADB should continue supporting policy reforms and institutional strengthening in the areas of PFM, public procurement, and anticorruption, while also focusing on promoting private sector growth and separating business and politics.