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2007 Assessment

Vanuatu: Integrity Indicators Scorecard

Vanuatu: Integrity Scorecard Report > Sub-Category: Budget Processes
Indicators		Score
37	Can the legislature provide input to the national budget?	83
38	Can citizens access the national budgetary process?	58
39	In law, is there a separate legislative committee which provides oversight of public funds?	100
40	Is the legislative committee overseeing the expenditure of public funds effective?	38

Indicator and sub-Indicator Details

Can the legislature provide input to the national budget?

37a: In law, the legislature can amend the budget.

Score:

YES

Comments:

References: Public Finances Act, Section 17 (Supplemenatry Estimates), Section 18 (Provision for Urgent & Unforseen Expenditure) - www.paclii.org/vu/legis/consol_act/pfa123/

37b: In practice, significant public expenditures require legislative approval.

Score:

100

$Scoring Criteria :: 100 Score Criteria: All significant government expenditures (defined as any project costing more than 1% of the total national budget), must be approved by the legislature. This includes defense and secret programs, which may be debated in closed hearings. 50 Score Criteria: Most significant government expenditures (as defined) are approved by the legislature, but some exceptions to this rule exist. This may include defense programs, an executive\'s personal budget, or other expenses. 0 Score Criteria: The legislature does not have the power to approve or disapprove large portions of the government budget, or the legislature does not exercise this power in a meaningful way.$

Comments:

References: Manager - Insolvency, Legal and Compliance Dept.

37c: In practice, the legislature has sufficient capacity to monitor the budget process and provide input or changes.

Score:

100

Comments:

References: Manager - Insolvency, Legal and Compliance Dept.

Peer Review Comments: Legislators may be very inexperienced and not have resources (human, technical and financial) to draw on. This is one of the critical challenges for governance and implementing governance reforms.

Peer Review Comments: A shortage of skill, capacity and experienced staff does have some negative impact on the ability to adequately perform all budgetary oversight functions (see AusAID Drivers of Change Report 2007).

Can citizens access the national budgetary process?

38a: In practice, the national budgetary process is conducted in a transparent manner in the debating stage (i.e. before final approval).

Score:

100

Comments: The national budgetary process is usually conducted in a transparent manner in the parliament. It is done usually at the end of the year around November. Some decision making occurs behind closed doors but the majority of the budgetary process has always been done in public through formal parliamentary sessions, which are broadcast live on the national radio.

References: Manager - Insolvency, Legal and Compliance Dept.

Peer Review Comments: NIS report and other references suggest this is not the case, and that some decision making is done in secret.

38b: In practice, citizens provide input at budget hearings.

Score:

100

Comments:

References: Manager - Insolvency, Legal and Compliance Dept.

38c: In practice, citizens can access itemized budget allocations.

Score:

100

Comments:

References: Manager - Insolvency, Legal and Compliance Dept.

Peer Review Comments: Details are provided when the budget is tabled before parliament.

In law, is there a separate legislative committee which provides oversight of public funds?

39: In law, is there a separate legislative committee which provides oversight of public funds?

Score:

YES

Comments:

References: Public Accounts Committee - Public Finances & Economic Management Act www1.worldbank.org/publicsector/pe/BudgetLaws/VANUATU1998PFEMActFinalVersion.doc

Is the legislative committee overseeing the expenditure of public funds effective?

40a: In practice, department heads regularly submit reports to this committee.

Score:

100

Comments:

References: Manager - Insolvency, Legal and Compliance Dept. www.transparency.org.au/documents/vanuatu.pdf (pages 19-20)

40b: In practice, the committee acts in a non-partisan manner with members of opposition parties serving on the committee in an equitable fashion.

Score:

100

$Scoring Criteria :: 100 Score Criteria: The committee is comprised of legislators from both the ruling party (or parties) and opposition parties in a roughly equitable distribution. All members of the committee -- including opposition party members -- are able to fully participate in the activities of the committee and influence the committee\'s work to roughly the same extent as any other member of the committee. 50 Score Criteria: The committee is comprised of legislators from both the ruling party (or parties) and opposition parties although the ruling party has a disproportionate share of committee seats. The chairperson of the committee may be overly influential and curb other members\' ability to shape the committee's activities. 0 Score Criteria: The committee is dominated by legislators of the ruling party and/or the committee chairperson. Opposition legislators serving on the committee have in practice no way to influence the work of the committee.$

Comments: Members of Parliament from both opposition and government make up PAC.

References: Manager - Insolvency, Legal and Compliance Dept. www.transparency.org.au/documents/vanuatu.pdf (pages 19-20)

40c: In practice, this committee is protected from political interference.

Score:

100

$Scoring Criteria :: 100 Score Criteria: This committee operates independently of the political process, without incentive or pressure to render favorable judgments on politically sensitive issues. Investigations are rarely praised or criticized by political figures. 50 Score Criteria: This committee is usually independent but is sometimes influenced by negative or positive political incentives. This may include public praise or criticism by the government. 0 Score Criteria: This committee is commonly influenced by personal or political forces or incentives. This may include conflicting family relationships, professional partnerships, or other personal loyalties that ultimately influence the committee\'s behavior and decision-making. Negative incentives may include threats, harassment or other abuses of power by the government.$

Comments:

References: Manager - Insolvency, Legal and Compliance Dept. www.transparency.org.au/documents/vanuatu.pdf (pages 19-20)

40d: In practice, when necessary, this committee initiates independent investigations into financial irregularities.

Score:

100

Comments: Investigation is normally carried out by the Ombudsman Commission.

References: Manager - Insolvency, Legal and Compliance Dept. www.transparency.org.au/documents/vanuatu.pdf (pages 19-20)

Peer Review Comments: The Committee's terms of reference do not include independent investigations into financial irregularities, but where they believe irregularities have occurred they may notify relevant agencies such as the Ombudsman and the Auditor General.