Ensuring policy compliance with the requirements of donors is a crucial precondition for sustaining preferential treatment. This ensures the sustainability of donor funding on a continuous basis. There are, however, important considerations that ensure compliance and sustainability. It is crucial to understand donor requirements in detail and in clear terms. It is important to read contracts and agreements to avoid ambiguity before signing them. In particular, parties to the agreement have to carefully review the terms and conditions specified in the funding agreement. The concerned officials in Ethiopia used to pay attention to reporting deadlines for performing activities with respect to earmarked expenditures. Also, they give due attention to disallowed expenses as specified in donor guidelines. The reason behind this note is to check for abuse of external resources by corrupt personnel associated with the implementation of projects.
The remedy for abuse of resources is a preemptive measure that leaves no opportunity for loopholes in performance of project activities. It is, therefore, important to clarify expectations by those closely involved in donor financed projects. In case of ambiguous requirements, it is critical to communicate with the donor for the purpose of clarification. Ambiguity leaves the door open for abuse of donor funds by irresponsible implementers of projects. To keep ambiguity at bay, it is a precondition to keep detailed notes of any verbal communications. These have to be confirmed and documented by the concerned parties in writing. It is usually common to prepare internal policies and procedures for the purpose of aligning with donor policies. Here, alignment does not mean willingness to be guided by donors. All parties to an agreement have to maintain their positions with marginal submission.
When aligning with donor requirements, it is important to ensure the policies and programs of the Ethiopian government have to be respected. In this regard, policies and procedures need to be carefully aligned with the preconditions of the donor. Sector programs and projects funded by donors need specific guidelines for the management of projects. This includes financial management and reporting that comply with donor standards. Donors have to maintain certain standards of disbursement, purchase of materials required for specific projects, and qualified staffs responsible for project management. The project staffs have to deliver performance report periodically to both implementing government agencies and donors. A joint assessment of these reports determines the future of the project. If the management of the project abuses resources earmarked for a specific project, it may be terminated by any party to the project agreement.
It is obvious that when the objective of a development project is not fully achieved as per agreement, it may be due to lack of capacity to manage it. Before a project begins to be implemented, it is required to conduct a training program for capacity building. It is also a precondition to train staff on donor requirements and internal policies. Lack of knowledge regarding these requirements is an impediment for project implementation. There is, therefore, a need to conduct regular workshops related to the project. Most Ethiopian staffs assigned to run a project are carefully selected before the project is conducted. Most donors, including UN agencies in Ethiopia, give prior attention to the placement of trained and qualified staffs to the projects they do finance. Moreover, they ensure that refresher courses are offered on the job to keep everyone updated and knowledgeable about project management. These efforts are also accompanied by skill development for execution, monitoring and evaluation of performed activities.
Activity and financial reports are based on documentation and records kept in an orderly manner. Keeping thorough records of all decisions, activities, and transactions related to the project is a necessary condition. The project management group has to use an approach for documenting and storing in a systematic manner. This practice would help in facilitating simple retrieval and review of the progress of work. It is also critical to the trail auditing of project performance. This ensures the existence of a clear audit performance report for follow-up. Trailing all financial transactions and reports is crucial for ensuring the effective performance of projects. It is also advisable to conduct regular review meetings with stakeholders and reconcile accounts to prevent discrepancies. This procedure helps to prevent misuse of resources and ensures the prevention of abuse of power in the future. Regular monitoring breaks the cycle of corruption and abuse of authority.
It is becoming necessary to monitor and evaluate project activities on a regular basis. A regular review of these activities helps to identify misuse of resources in good time and prevent it. There is a need to establish a regular monitoring of projects before they begin to be implemented. This helps to regularly check compliance by project managers with donor requirements. Any breech in this process will have to be immediately corrected by the concerned local authority and the donor. This should be done systematically using tools such as checklists, which are useful to identify activities that are listed in the project document. Compliance with the checklist is absolutely necessary to detect any negligence of duties. Matrices and dashboards are also objective means of tracking the progress of project activities.
Internal audits, if conducted periodically as prescribed in the project document, they help to identify any disorder and lack of compliance as early as possible. Based on reports of internal audit, it may be possible to immediately take corrective actions to address any reported errors. Measures have to be taken against the persons responsible for these errors. Negligence to take appropriate steps in line with the terms and conditions of the agreement may abort the project. In this regard, reporting and communication has to be timely, factual and free from any prejudice. The report has to be prepared and submitted in line with donor conditions agreed upon. Both donors and implementers of projects have to ensure these reports are accurate and complete. They have to adhere to the donor policies and requirements. This practice has been observed in projects implemented in Ethiopia.
It is one of the requirements of donors to maintain open communication with local project implementing agencies. This practice contributes to transparent communication on both sides. Transparency is an important means of controlling abuse of donor resources within recipient countries including Ethiopia. Periodic reports on any issues or deviations related to donor financed projects should effectively be used for the purpose of taking corrective actions. In any project, there is an assumption of risks that may impede proper implementation. There is, however, risk management technique that helps to identify possible threats of implementation. It is crucial to identify potential risks that could impede compliance with donor requirements. In this situation, there is a requirement to develop a risk management plan to minimize or mitigate these risks. This leads to the development of contingency plans for handling unexpected problems and challenges that may arise suddenly during project implementation.
Policy compliance involves legal and ethical considerations in donor financed projects. This requires adherence to laws and regulations of the government of Ethiopia which are related to development plans and programs. These laws and regulations guarantee compliance with local, national, and international laws related to donor project. To avoid illegal operations that lead to irresponsible wastage of resources, including abuse of funds and materials, both the government and donors enter into agreements. In so doing, they consult legal experts to understand and apply pertinent and relevant regulations. In this respect, it is absolutely necessary to apply ethical standards to keep at bay corrupt practices. It is, therefore, useful to maintain high standards in the management of all project activities in Ethiopia. The modality is just to address any ethical concerns promptly, effectively and transparently. In so doing, government implementing agencies may ensure good standing with their donors. This modality of operation ensures and secures funding for projects.
Guaranteeing policy conformity with donor requirements is critical for ensuring good relationships with donors. This helps to make the sustainability of funding certain. There are certain factors that ensure compliance with donor requirements. In this regard, it is important to carefully understand and review the terms and conditions outlined in the funding agreement. Both the donor and responsible government authority must pay attention to reporting deadlines and specific donor guidelines. Periodic reporting of activities by inspectors ensures that a project is implemented in line with agreement entered between the concerned parties. The inspection reports help to identify misuse and abuse of donor resources in time. Based on inspection reports immediate and corrective actions have to be taken by the implementing agency and the donor. In this respect, policy compliance has to be ensured to avoid the discontinuation of funding. Donor funds flow into Ethiopia in foreign exchange for employing skilled project managers and staff from the local labor market. These funds are used to support development projects in the country as per the agreement entered.
Editor’s Note: The views entertained in this article do not necessarily reflectthe stance of The Ethiopian Herald
BY GETACHEW MINAS
THE ETHIOPIAN HERALD SATURDAY 29 JUNE 2024
