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Ecuador Urged to Increase Transparency in Political Finances

A recent report has called on Ecuador’s government to increase transparency in political financing, recommending that parties and candidates publish detailed information about who is funding them, how much they are receiving, and how the funds are being spent.

The Report’s Findings

The report, conducted by Fundación Ciudadanía y Desarrollo (FCD) with the support of the Pan American Development Foundation (PADF), highlights several key issues:

  • Ecuador loses close to $4 billion annually due to tax evasion.
  • Only 2.3% of GDP is invested in health.
  • Corruption in public procurement has resulted in losses of between $600 million and $1.5 billion.

Recommendations

The report makes the following recommendations:

Transparency in Political Finances

Parties and Candidates

  • Publish detailed information about funding sources, amounts received, and how funds are spent on their websites.
  • The Comptroller General’s Office should publish this information on its website in a timely manner, ideally before elections.

Strengthening Government Agencies

Coordination and Oversight

  • Strengthen coordination among government agencies to ensure better auditing and oversight.

Public Procurement Reform

Regulatory Change and Transparency

  • Implement comprehensive regulatory reform of the National Public Procurement System.
  • Provide online public access to contract information.

Institutional Strengthening

Technological Innovation and Whistleblower Protection

  • Strengthen institutional capacity through technological innovation and whistleblower protection.

Judicial Independence and Corruption Prevention

Regulation Update and Money Laundering Reform

  • Update regulations on transparency and access to public information.
  • Reform laws to prevent money laundering and penalize interference in whistleblower cases.

Contact Information

Mark L. Schneider, senior adviser (non-resident) with the Americas Program and Human Rights Initiative at the Center for Strategic and International Studies in Washington, D.C., contributed to this report. The full report is available online in Spanish only, while an English language executive summary can be accessed here.