## Checking the Receipts from Pandemic-Related Spending

_IMF Blog, May 20, 2021_

## Source details

**Canonical URL:** [Checking the Receipts from Pandemic-Related Spending](https://www.imf.org/en/blogs/articles/2021/05/20/blog-052021-checking-the-receipts-from-pandemic-related-spending)

## Other formats

- [Markdown version](/en/blogs/articles/2021/05/20/blog-052021-checking-the-receipts-from-pandemic-related-spending/index.md)
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## Bibliographic details
- Authors: Chady El Khoury, Jiro Honda, Johan Mathisen, Etienne Yehoue
- Published: May 20, 2021

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### Context and purpose
- Governments provided lifelines to people and firms to combat the pandemic and its economic fallout; transparency and accountability are important to support effectiveness.
- IMF stance: "spend what you must, but keep the receipts."
- IMF pressed for better governance through greater transparency and sought specific governance measures for countries receiving IMF financing during the crisis.

### IMF-required governance measures
- Commitments include:
  - Publish pandemic-related procurement contracts.
  - Publish beneficial ownership of companies awarded these contracts.
  - Publish COVID-19 spending reports and audit results.
- Tailoring and safeguards:
  - Measures are tailored to country circumstances and the severity of corruption risks.
  - All recipient countries commit to undertake a Safeguards Assessment to ensure the central bank can provide reliable information and transparently manage IMF funds.

### Implementation progress (one year into the emergency response)
- Publication of contract information:
  - Most commitments have or are in the process of being met, including in the Dominican Republic, Guinea, Nepal, and Ukraine.
  - In some countries, capacity constraints limit progress; IMF provides capacity development support.
- Beneficial ownership publication:
  - Purpose: deter corruption and facilitate detection of conflicts-of-interest by requiring bidding companies to provide names of people with effective control ("beneficial owners") to procurement agencies for publication.
  - Implementation status: "only half of the countries (including Benin, Ecuador, Jordan, Malawi, and Moldova) having implemented this commitment or made substantial progress toward it."
  - Positive spillovers: commitments prompted some countries, such as Kenya and the Kyrgyz Republic, to adopt the reform permanently (beyond pandemic-related spending).
- Audits of emergency spending:
  - Typical deadline for ex-post audits: "3-12 months after the end of the fiscal year."
  - It is too early to assess implementation—most audits are in preparation based on existing systems.
  - Early action examples: Jamaica, Honduras, Maldives, and Sierra Leone have conducted risk-based, real-time audits.
  - IMF support: stepping up capacity development to help supreme audit institutions and improve retrievability of information.
- Reporting of pandemic-related spending:
  - Most countries are, or will shortly begin, publicly reporting on execution of this spending.
- Safeguards Assessments:
  - Being undertaken rapidly, "with the pace of these assessments doubling after the pandemic’s onset."

### Tackling deeper governance and anti-corruption challenges
- Longer-term engagement:
  - Emergency measures are not silver bullets; deeper vulnerabilities are addressed under the IMF’s broader "2018 Framework for Enhanced Fund Engagement on Governance."
  - Focus areas in the 2018 Framework: multi-year IMF lending arrangements, annual health checks of IMF member countries, and capacity development.
- Examples of reforms under multi-year IMF financing arrangements:
  - Fiscal governance: Ecuador, The Gambia, Jordan, Liberia, Rwanda, and Senegal.
  - Anti-corruption and anti-money laundering frameworks: Angola, Armenia, Republic of Congo, Kenya, and Tunisia.
  - Financial sector oversight and central bank governance: Liberia and Ukraine.
- Capacity development:
  - IMF staff will continue to provide tailored capacity development through technical assistance, training, and webinars.

### Transparency and accountability beyond IMF financing
- Practices in non-recipient and other countries:
  - Comprehensive spending portals: Brazil, Colombia, Costa Rica, France, and Peru.
  - Frequent external audits: South Korea.
  - Emergency procurement guidelines: Spain.
  - Detecting conflicts-of-interest via beneficial ownership and disclosures: Romania.
- IMF engagement channels:
  - Through Article IV consultations and policy dialogue, IMF staff discuss transparency and accountability in pandemic-related spending in countries such as Poland, the United Kingdom, and the United States, and on fiscal, monetary, and financial sector measures more generally.

### Building on progress and next steps
- Sustained country engagement on governance and anti-corruption is necessary to support effective implementation of pandemic reforms and beyond.
- IMF priorities and actions:
  - Implement the 2018 Framework, which addresses governance issues beyond anti-corruption, including fiscal governance, financial sector oversight, central bank governance, market regulation, rule of law, and anti-money laundering frameworks.
  - Continue tailored capacity development to address varying implementation capacity across countries and measures.
  - Take stock of progress in implementing the 2018 Framework in mid-2022 to assess continued IMF support for strengthening governance.
- Enablers of success:
  - High-level political ownership of reforms.
  - International cooperation.
  - Joint effort with civil society and the private sector.
  - Sustained implementation over an extended period.
- Outlook: Progress is not easy but is achievable and essential for fostering stronger and more inclusive economic growth.

*Source: IMFBlog, "Checking the Receipts from Pandemic-Related Spending", May 20, 2021.*

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## Content in this bundle

- **Implementation status of governance commitments on crisis-related spending_To depts.docx**
  - [Implementation status of governance commitments on crisis-related spending_To depts.docx (Markdown version)](/-/media/files/topics/governance-and-anti-corruption/implementation-status-of-governance-commitments-on-crisis-related-spending-may-2021.pdf.md){rel="alternate" type="text/markdown"}
  - [Implementation status of governance commitments on crisis-related spending_To depts.docx (PDF)](/-/media/files/topics/governance-and-anti-corruption/implementation-status-of-governance-commitments-on-crisis-related-spending-may-2021.pdf){rel="external" type="application/pdf"}

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## References

- [عربي](https://www.imf.org/ar/News/Articles/2021/05/20/blog-052021-checking-the-receipts-from-pandemic-related-spending)
- [Español,](https://blog-dialogoafondo.imf.org/?p=15692)
- [日本語](https://www.imf.org/ja/News/Articles/2021/05/20/blog-052021-checking-the-receipts-from-pandemic-related-spending)
- [Português](https://www.imf.org/pt/News/Articles/2021/05/20/blog-052021-checking-the-receipts-from-pandemic-related-spending)
- [transparency and accountability](https://blogs.imf.org/2020/07/28/corruption-and-covid-19/)
- [spend what you must, but keep the receipts](https://blogs.imf.org/2020/04/15/fiscal-policies-to-contain-the-damage-from-covid-19/)
- [governance measures](https://www.imf.org/en/About/Factsheets/Sheets/2020/04/30/how-imf-covid19-financial-help-is-used)
- [Safeguards Assessment](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/43/Protecting-IMF-Resources-Safeguards)
- [2018 Framework for Enhanced Fund Engagement on Governance](https://www.imf.org/en/Publications/Policy-Papers/Issues/2020/07/15/Progress-In-Implementing-The-Framework-For-Enhanced-Fund-Engagement-On-Governance-49576)
- [Ecuador](https://www.imf.org/en/Publications/CR/Issues/2020/12/23/Ecuador-First-Review-Under-the-Extended-Arrangement-Under-the-Extended-Fund-Facility-and-49980)
- [The Gambia](https://www.imf.org/en/News/Articles/2021/04/01/pr2196-gambia-imf-staff-completes-virtual-mission-for-the-second-review-of-the-ecf)
- [Jordan](https://www.imf.org/en/News/Articles/2021/03/30/pr2193-jordan-imf-staff-and-jordan-reach-staff-level-agreement-on-the-second-review-under-eff)
- [Liberia,](https://www.imf.org/en/Publications/CR/Issues/2021/01/07/Liberia-First-and-Second-Reviews-Under-the-Extended-Credit-Facility-Arrangement-Request-for-49995)
- [Rwanda](https://www.imf.org/en/Publications/CR/Issues/2021/01/04/Rwanda-Third-Review-Under-the-Policy-Coordination-Instrument-Press-Release-Staff-Report-and-49984)
- [Senegal](https://www.imf.org/en/News/Articles/2021/04/29/pr21117-senegal-imf-staff-reach-agreement-on-3rd-review-pci-and-new-18-month-financing-arrangement)
- [Angola,](https://www.imf.org/en/Publications/CR/Issues/2021/01/19/Angola-Fourth-Review-Under-the-Extended-Arrangement-Under-the-Extended-Fund-Facility-and-50024)
- [Armenia](https://www.imf.org/en/Publications/CR/Issues/2020/12/16/Republic-of-Armenia-Third-Review-under-the-Stand-By-Arrangement-and-Modification-of-49961)
- [Republic of Congo](https://www.imf.org/en/Countries/COG)
- [Kenya](https://www.imf.org/en/News/Articles/2021/02/15/pr2140-imf-and-kenyan-authorities-reach-staff-level-agreement)
- [Tunisia](https://www.imf.org/en/Publications/CR/Issues/2021/02/26/Tunisia-2020-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-50128)
- [Ukraine](https://www.imf.org/en/Publications/WP/Issues/2021/04/23/Assessing-the-Macroeconomic-Impact-of-Structural-Reforms-in-Ukraine-50345)
- [Poland](https://www.imf.org/en/Publications/CR/Issues/2021/02/05/Republic-of-Poland-2020-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-50066)
- [United Kingdom](https://www.imf.org/en/Publications/CR/Issues/2020/12/18/United-Kingdom-2020-Article-IV-Consultation-Press-Release-Staff-Report-Staff-Supplement-and-49971)
- [United States](https://www.imf.org/en/Publications/CR/Issues/2020/08/07/United-States-2020-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-49650)

_Source: https://www.imf.org/en/blogs/articles/2021/05/20/blog-052021-checking-the-receipts-from-pandemic-related-spending_