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Cambodia’s Governance Risk Assessment Reveals Widespread Corruption and Weak Public Financial Management

Phnom Penh, Cambodia - A comprehensive assessment of Cambodia’s governance risks has found widespread corruption and weaknesses in public financial management to be major threats to development effectiveness.

Report Highlights Major Risks

The report, prepared by the Asian Development Bank (ADB) under its Second Governance and Anticorruption Action Plan (GACAP II), assesses the country’s risk profile across three key governance pillars: public financial management, procurement, and combating corruption. The assessment drew on recent diagnostic studies and extensive dialogue with government officials, development partners, and non-governmental organizations.

  • Corruption is rampant, with widespread bribery and embezzlement compromising the integrity of public institutions.
  • Public financial management is weak, with inadequate budget planning and monitoring allowing for wasteful spending and misappropriation of funds.

Urgent Reforms Needed

The report calls for urgent reforms to address these risks and improve governance in Cambodia. Recommendations include:

  • Strengthening public financial management systems
  • Improving procurement practices
  • Increasing transparency and accountability in government operations

“We need to take immediate action to tackle corruption and strengthen public financial management,” said a senior ADB official. “Only by addressing these risks can we ensure that development resources are used effectively and efficiently to benefit the Cambodian people.”

Coordinated Approach Needed

The report also highlights the need for a more coordinated approach to governance risk management, with greater involvement from government agencies, civil society, and international partners.

“Cambodia’s first GACAP II assessment is a crucial step forward in improving governance and reducing corruption,” said another ADB official. “We look forward to working closely with the Cambodian government and other stakeholders to implement the recommendations and achieve better development outcomes.”

Future Plans

The report is expected to inform policy reforms and program design at both national and sectoral levels, as well as guide the preparation of sector-specific risk assessments and management plans.

References

  • ADB (2006) Second Governance and Anticorruption Plan (GACAP II)
  • ADB (2008d) Guidelines for Preparing Country-Level Governance Risk Assessments
  • Ministry of Economy and Finance (2010) Cambodia Public Expenditure Financial Accountability Assessment