Mali’s Expenditure Chain: A Slow, Complex, and Vulnerable Process

A recent study has shed light on the inefficiencies and vulnerabilities in Mali’s public expenditure chain, which is crucial for effective financial management. The process involves various stages, from commitment to payment, but bottlenecks and red tape have created a system that is slow, complex, and vulnerable to fraud.

Receipt of Goods or Services: A Prolonged Process

One of the major obstacles in the expenditure chain is the receipt of goods or services. In Mali, receiving committees examine all deliveries exceeding CFAF 2.5 million, involving multiple stakeholders, including the stock accountant, appropriations manager, and representatives from the General Directorate of Administration of Government Assets. This process can take months to complete.

Accountant’s Verifications: Redundant and Time-Consuming

Another issue is that accountants’ verifications are redundant and duplicate efforts already carried out by financial controllers. This excessive number of verifications could be reduced by better task sharing among controllers, payment authorization officers, and accountants.

Circulating “Hard-Copy Files”: A Vulnerable Process

The circulation of hard-copy files is also a major concern. After being recorded in the PRED3 information system for commitment, expenditure files are transported from department to department, often by motorcycle, which results in the risk of loss or falsification of documents or collusion between carriers and recipients.

Administrative and Accounting Phases: A Time-Consuming Process

The administrative and accounting phases of the expenditure chain take around two months to complete. This process includes verification of invoices, payment authorization, and financial reporting. The study found that suppliers and government employees are often paid late, which can impact the quality of goods and services provided.

Public Perception: A Negative View

Malians generally perceive the public expenditure chain as slow, complex, and vulnerable to fraud. Civil society organizations and chambers of trade have expressed suspicions of corruption among public spending stakeholders, while the press has reported on the inefficiencies and lack of transparency in the process.

Empirical Evidence: Fraud and Mismanagement

The Office of the Auditor General has confirmed many examples of inappropriate use or misappropriation of public funds. The study found that 17 units were audited, with detected financial losses amounting to CFAF 49.39 billion, including CFAF 35.25 billion resulting from fraud and mismanagement of expenditure execution.

Conclusion

The inefficiencies and vulnerabilities in Mali’s public expenditure chain highlight the need for reforms to improve transparency, accountability, and effectiveness in government spending.