Infographic // Moldova: Audit highlights inefficient use of external funds
More than €2.63 billion in external funding was allocated to the Republic of Moldova between 2022 and 2023.
However, a recent report by the Court of Accounts reveals significant shortcomings in the management of these funds. The audit identified several critical issues, including a confusing legislative framework, inadequate project evaluation indicators, and weaknesses in internal controls.
Key findings of the audit:
- Fragmented and contradictory legislation: The regulatory framework is fragmented and contradictory, hindering clear assignment of responsibilities among the involved units. This has resulted in confusion during the organization and evaluation of activities.
- Inadequate project monitoring: Project evaluations relied on indicators that did not align with the SMART principles, making it challenging to track progress and meet targets.
- Ineffective internal controls: While internal control systems have been established, they are often ineffective. This has resulted in suboptimal utilization of financial resources and the failure to meet planned goals.
Allocation of external funds:
- 46.38% (€1.22 billion) was allocated to budget support.
- 30.14% (€792.9 million) was allocated to investment projects.
- 23.48% (€617.7 million) was allocated to technical assistance.
To enhance the management of external funds, the Court of Accounts has recommended establishing a unified, non-contradictory regulatory framework to clarify roles and responsibilities. Furthermore, the Court recommends implementing efficient monitoring methods based on well-defined indicators to accurately track project progress. Additionally, the Court recommends implementing more robust mechanisms to minimize waste, mitigate risks, and optimize the utilization of funds.
The Court of Accounts emphasizes the need for swift and effective reforms to ensure transparency and efficiency in the use of public funds. The full report, which includes nine strategic recommendations, is available.
Translation by Iurie Tataru
