Financial Crime World

Compliance Risk Management Crucial for Mongolia’s Health Sector

Mongolia’s health sector is facing significant compliance risks that need to be mitigated to ensure effective project implementation, according to a risk assessment and management plan released by the Asian Development Bank (ADB).

Key Areas of Concern

The ADB has identified several key areas where compliance risks are prevalent:

  • Public Financial Management: Weak budget credibility at the sector level, lack of medium-term action plans to guide resource allocation, and limited capacity for procurement officers to carry out their duties fairly and transparently.
  • Procurement: Limited capacity for procurement officers to carry out their duties fairly and transparently, and a need for regular training on procurement processes and supervision and monitoring for staff involved in procurement.
  • Anticorruption: Corruption is pervasive and requires additional support to strengthen institutional capacity and effectiveness.

Risk Management Plan

To mitigate these risks, the ADB has developed a risk management plan that includes several key measures:

  • Public Financial Management:
    • Medium-term action plans to guide resource allocation
    • Improved budget credibility at the sector level
    • Regular training for staff involved in procurement
  • Procurement:
    • All procurement to be carried out by the Ministry of Health (MOH) and coordinated by the project implementation unit (PIU)
    • Assistance in contract bidding and evaluation procedures
    • Regular training on procurement processes and supervision and monitoring for staff involved in procurement
  • Anticorruption:
    • Encouraging good governance, accountability, and transparency in project operations
    • Assisting MOH and implementing agencies to ensure effective anticorruption measures are in place

Conclusion

The report highlights the importance of compliance risk management in Mongolia’s health sector and recommends a range of measures to mitigate these risks. The ADB has committed to providing support to strengthen institutional capacity and effectiveness to help address these risks and ensure successful project implementation.