Financial Crime World

Transparency and Accountability in Ecuador: A Diagnostic Report

Introduction

The Fundación Ciudadanía Democrática (FCD) has released a comprehensive diagnostic report on the current state of transparency and accountability in Ecuador. The report covers four key areas: electoral transparency, fiscal and budgetary transparency, public procurement transparency, and transparency in public services.

Electoral Transparency

Key Challenges

  • Institutional weakness of the National Electoral Council (CNE), with insufficient financial and human resources.
  • Limited access to electoral data and lack of a registry for electoral candidates.

Reforms Needed

  • Publish detailed information on public finances
  • Improve access to electoral data
  • Create a registry of electoral candidates

Fiscal and Budgetary Transparency

Key Challenges

  • Limited fiscal transparency, with unclear budget allocation processes and lack of disclosure of state-owned assets.
  • Inadequate parliamentary control over public finances.

Reforms Needed

  • Improve publication of detailed financial information
  • Enhance parliamentary control over public finances
  • Strengthen the National Treasury’s oversight capacity

Public Procurement Transparency

Key Challenges

  • Importance of public procurement transparency to prevent corruption.

Reforms Needed

  • Implement a transparent online registry for all government contracts.
  • Improve auditability.
  • Establish an independent contracting agency.

Transparency in Public Services

Key Challenges

  • Gaps in recruitment processes, particularly at high levels.

Reforms Needed

  • Implement merit-based selection processes for public officials.
  • Enhance transparency of assets and interests.
  • Regulate conflicts of interest.

Conclusion

The report emphasizes the importance of institutional and individual capacity building to promote transparency and combat impunity. Specific reforms proposed include:

  • Updating the Law on Transparency and Access to Public Information (LOTAIP)
  • Strengthening oversight in the judiciary and law enforcement
  • Adopting measures to incorporate international standards to control money-laundering

Methodology

The FCD research team consulted various institutions, media websites, public institutions, and reliable portals related to the subject. They worked with consultancy firm Multienlace headed by Ec. Mauricio Pozo Crespo for economic and fiscal analysis, supported by PADF.