Editorial | Real-time audits warranted

The decision by the auditor general (AuG) to conduct real-time audits of foreign aid to Jamaica in the aftermath of Hurricane Melissa is a welcome move that need not add bureaucracy to, or delay, the distribution of relief to people in need, as some might fear.

Ongoing audits, rather than reviews years down the road, are likely to limit the siphoning of resources by corrupt actors, thus ensuring that more of it reaches people for whom it is intended, or used for broader national recovery.

People tend to behave better when they know they are being watched.

However, even as this newspaper expects public officials to, insofar as possible, operate in accordance with the rules, and to be transparent and accountable in their actions, we appreciate that in times of crisis some normal regulatory regimes are inevitably relaxed.

But they ought not to be exploited. Indeed, it is in this context that the auditor general, Pamela Monroe Ellis, has indicated that her office will conduct its audits, using international rules and best practices.

When Melissa, an intense Category 5 storm, struck western Jamaica a fortnight ago, it caused at least 32 deaths, damaged or destroyed tens of thousands of homes, displaced more than 30,000 people, and ripped up public infrastructure.

The initial estimate of the damage was over US$6 billion, or nearly a third of Jamaica’s GDP. But that figure is likely to rise significantly, especially when the non-direct impact of the hurricane on the economy is taken into account.

Foreign governments, international agencies and private individuals have responded to the crisis by sending, or promising, relief and longer-term recovery assistance to Jamaica.

Prime Minister Dr Andrew Holness has established various government committees to coordinate the receipt and deployment of the aid under the umbrella of the National Disaster Risk Management Council. The Office of Disaster Preparedness and Emergency Management is the secretariat for the NDRMC.

The Government has also established a website to be a central hub for global donations.

It is a sad fact, borne out in many international reports and analyses, that disaster and humanitarian relief are often exploited for corruption.

REALITY AND PERCEPTION

While there is no firm agreement on the amount of humanitarian assistance that is lost to corruption (figures range from a low of two per cent to upwards of 20 per cent), a Transparency International Helpdesk report last year concluded that it is a problem in reality and perception.

Said the report: “. .. It is clear that corruption has a negative impact on the quality and quantity of international humanitarian assistance delivered to populations in need.

“According to a survey conducted as part of the 2022 study The State of the Humanitarian System , only 36 per cent of aid recipients agreed that aid reached those who needed it most. This suggests that affected populations perceive widespread corruption and mismanagement in the delivery of IHA (international humanitarian assistance) and that the diversion or theft of resources supplied by aid agencies is a ‘top concern for communities’.”

Limiting corruption in relief assistance is important in two respects. The first and most obvious one is that getting relief to where it is required most ameliorates individual suffering and gets communities back on their feet, allowing people to get along with their lives as best as they can. That eases the burden on governments.

But if citizens believe that relief assistance is being unfairly or corruptly administered, or stolen by public officials – either by direct theft, graft or kickbacks – it diminishes trust in the State, which weakens the capacity of the government to effectively manage recovery. The first, and most important, obligation of governments, is, in addition to efficiency – honesty and trustworthiness. They must clearly eschew corruption.

This approach demands accountability and transparency, supported by effective oversight. Which is the framework within which the real-time audit announced by Ms Monroe Ellis fits.

Said the auditor general: “Specifically, the audit seeks to determine whether internal controls were adequate to prevent any potential fraud, waste and abuse of public resources during disaster response and recovery, by assessing whether:

a. proper IT controls exist over www.supportjamaica.gov.jm website;

b. proper accounting and record-keeping of all donations (including funds and supplies) received and distributed to affected individuals by the GoJ;

c. procurement activities complied with the applicable laws, regulations and guidelines.”

Importantly, the audits will be conducted in accordance with the Guidance on Auditing Disaster Management (GUID 5330), issued by the International Organisation of Supreme Audit Institutions .

GUID 5330 recognises the urgency and fluidity associated with disaster environments, thereby requiring auditors to tailor approaches to suit the circumstances, with a greater focus on areas of higher risk of fraud, waste, or mismanagement, rather than attention to minutiae. The outcomes of such audits should help governments to improve systems and build resilience.

But importantly, when public officials know they are being watched, they are likely to be more restrained with their hanky-panky.