Report No. PID9647

Project Name Tanzania-Accountability, Transparency & ...

Integrity Project

Region Africa Regional Office

Sector Other Public Sector Management

Project ID TZPE70544

Borrower(s) UNITED REPUBLIC OF TANZANIA

Implementing Agency

Address OFFICE OF THE CHIEF SECRETARY/HEAD

OF PUBLIC SERVICEState House, P. 0. Box 9120, Dar es Salaam,

Tanzania

Contact Person: Mr. M. Y. C. Lumbanga,Chief Secretary, Head of Public

Service

Tel: (255-22) 2116679

Fax: (255-22) 2113425

Environment Category C

Date PID Prepared December 6, 2000

Projected Appraisal Date September 15, 2000

Projected Board Date January 31, 2001

1. Country and Sector Background

2.1 OverviewAs the Chief Secretary and Head of the Public Service statesin the foreword to the National Framework on Good Governance (NFGG): "The

Government of Tanzania has given governance issues the highest priority in

recent years as it is aware that the continuing development problems in

the country could be associated with difficulties of management in the

public sector that are reflected in financial mismanagement, corruption,

low level service provision, tax evasion and unnecessary bureaucratic

procedures". This perspective is underpinned by a broad view that: (i)

governance encompasses political, economic, administrative/managerial and

social dimensions, and (ii) a participatory approach is imperative

considering the close correlation between development and good governance.

As stated in Governance: The World Bank's Experience (1994), good

governance implies predictable, open policy making; a bureaucracy with

professional ethos; an executive arm of government accountable for its

actions; and a strong civil society participating in public affairs; and

all behaving under the rule of law. This partnership of the central

government, local governments, private sector and civil society is

illustrated in Figure 1 below contained in GOT's framework for good

governance. Figure 1: Partnership for Good GovernanceSource: GOT, The

National Framework on Good Governance, December 1999In this broad

perspective, the main sector issues, as elaborated in the following

paragraphs, generally fall under the following headings:inefficient and

ineffective public service delivery; corruption;weak legal and judicial

systems;gaps in procedures and controls for public expenditure management

and more broadly financial accountability;poor management of information

including records and data; andweak oversight and watchdog institutions.

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2.2.1 Inefficient/ineffective public service delivery and lack of

accountability of public service institutionsBy mid-1980s the capacity and

performance of the public service of Tanzania had declined to lowly

levels. There was serious shortage of personnel with professional skills.

Civil servants' morale, motivation and discipline were low because of a

downward spiral in real incomes over an extended period, political

interference and failure to observe merit principles in appointments, and

collapsing management systems and controls. In tandem, poor choice of

policies and development strategies had resulted in the deterioration of

the national economy, as characterized by negative or low economic growth,

large fiscal deficits and high rates of inflation. Consequently, delivery

of most public services (education, health, water, agricultural extension,

etc.) by early 1990s was below the standards achieved by early 1970s.

Following a series of structural adjustment programs in the past decade,

Tanzania has in the last few years achieved a comparatively impressive

level of macroeconomic stability and growth. The country has this year

qualified for multilateral debt relief under the Highly Indebted Poor

Country (HIPC) initiative. However, the quality of public services remains

extremely poor, and the capacity of public institutions is still very low.

Government, with support of the Bank and other development partners, is

addressing these problems through various projects for the development of

specific sectors (education, health, water, agriculture, roads, urban

infrastructure, etc.), and cross-cutting reform programs for public

service, public finance, decentralization and local government. The

development objective of the Public Service Reform Program (PSRP),

supported by an IDA credit (3300-TA) is to improve efficiency and

effectiveness of public service delivery of the Government's economic and

social programs on a continuous and sustainable basis through

institutional reforms and capacity building measures. The

decentralization and Local Government Reform Program (LGRP), launched in

1997 and supported by several development partners, is geared to enhance

efficiency, effectiveness, transparency and accountability in the delivery

of basic social services through devolution of planning and

decision-making authority, and resources from the central government to

local governments.2.2.2 CorruptionThe problem of corruption in Tanzania

was recognized as long ago as 1966 when Government established a Permanent

Commission of Enquiry (Ombudsman) to check abuse of power by public

officers. Furthermore, in 1971, Parliament enacted the Prevention of

Corruption Act, and on this basis the Prevention of Corruption Bureau

(PCB) was established in 1975. Still, as explicitly acknowledged in the

National Anti-Corruption Strategy and Action Plan (NASCAP - November 1999)

for Tanzania, corruption in the public and private sectors has reached

endemic proportions. The government further states that it views the

corruption scourge as public enemy number one. A 1996 Presidential

Commission of Enquiry on Corruption (Warioba Commission) determined that

the high level corruption is caused by several factors, including: (i)

greed and abuse of power; (ii) poor discipline; (iii)deficiencies in

management systems, procedures and controls; (iv) weak legal and judicial

systems; (v) weak oversight and watchdog institutions (among these, the

Permanent Commission of Enquiry, the Prevention of Corruption Bureau

(PCB), the Controller and Auditor General (CAG), Parliament, and the mass

media); (vi) political interference; and (vii) low public awareness. The

NASCAP is coherent and holistic. It is underpinned by the principles of

zero-tolerance, the commitment of political leaders, prevention, public

awareness, and institution building. Its seven priority areas are: (i) the

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rule of law and legal framework: This component of the strategy and action

plan aims to facilitate the review of sectoral laws and creation of

conditions necessary for restoration of confidence in the Judiciary and

law enforcement agencies;(ii) financial discipline and management: The

objectives include to curb misuse, waste and loss of Government

resources;(iii) procurement: The aim is to ensure strict adherence to

efficient and transparent administration of tendering and procuring goods

and services so that value for money is realized; (iv) public education,

awareness and sensitization of their rights: The strategy involves

development and implementation of information and education programs that

create awareness of how corruption harms the economy, and ultimately

undermines the fabric and values of society; (v) public service reform:

This will target the transformation of public service officers to

accountable" servants of the public;(vi) whistle blowers and witness

protection: The aim is to launch a campaign to encourage citizens to

volunteer information on corrupt practices to enforcement agencies and to

protect them from victimization by the corrupt; and(vii) the mass media:

The mass media will be encouraged and supported to report corruption

incidences and elements without fear or favor, and to publicize the harm

of corruption to the innocent, the poor and the weak in Tanzania.2.2.3

Weak legal and judicial systemUpholding the rule of law through efficient,

fair and transparent administration of justice is the bedrock for the

promotion and maintenance of social peace and stability of the state. It

is also crucial in ensuring an enabling environment for development and

prosperity of the nation (Chief Justice of Tanzania, October 1999).

However, the peace and stability that Tanzanians have enjoyed over the

years cannot be attributed to the efficacy of its legal and judicial

system. Neither is the system enabling for private sector development. The

quality of legal and judicial services remains of low standards, as

reflected by:(a) inordinate delays in resolving disputes and dispensing

justice;(b) very limited access to legal services for the majority of the

citizens;(c) corruption and other unethical conduct of officers in the

legal system;(d) the legal system is significantly outdated and not

responsive to either social, political, economic and technological

changes, or to increasing resource constraints over the years; and (e)

limited public trust in the legal and judicial system. The problems and

constraints underlying the weakness of the legal and judicial system

are:(i) the legal and regulatory framework is fragmented, excessively

bureaucratic and outdated.(ii) weak management and coordination of legal

sector institutions;(iii) low competence, morale and integrity of public

sector legal personnel;(iv) inadequate numbers of professionally-trained

legal personnel;(v) constrained administrative independence of the

Judiciary;(vi) ignorance and poverty of the majority of the citizens which

deny them access to legal and judicial services; and (vii) excessively

limited, poorly furnished and equipped, and poorly maintained work

environment in all public sector legal institutions.Government has over

the past year developed a comprehensive Legal Sector Reform Program

(LSRP). The seven components of this program are targeted at the problem

areas outlined in the previous paragraphs. The key features of the Medium

Term Strategy and Action Plan (2000-2005) for this program

include:Government's commitment to enhanced funding of the Judiciary and

other public legal sector institutions;emphasis on relatively low-cost and

early impact interventions;strong inter-agency collaboration as a crucial

element to the overall successful implementation of the program;strategic

planning by legal sector institutions; and a program that complement and

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link with such other public sector reforms, such as the PSRP, LGRP and the

NASCAP.2.2.4 Gaps in procedures and controls for public expenditure

management and more broadly for financial accountabilityGovernment has

over the past decade persistently endeavored to improve its systems and

practice of public expenditure management. However, the outcomes of these

efforts are mixed. With regard to budget management, the imposition of a

strict cash control regime has enabled the securing aggregate control over

total public expenditure, consistent with revenue raising capacity and

borrowing constraints. As a result, fiscal deficits have been within set

targets in recent years, and there is macroeconomic stability. At the

same time, budget reform through Public Expenditure Reviews (PER),

implementation of a Medium Term Expenditure Framework (MTEF) and

introduction of performance budgeting (linked to a public service

improvement strategy under the PSRP) are underway. These latter

initiatives aim at allocative and operational efficiencies of the

Government's expenditure programs.In accounting for public expenditures,

the central thrust of reform has been the implementation of a transparent

computerized integrated financial management system (IFMS). IFMS

(PLATINIUM-based system) has now been successfully installed in all

ministries, and is currently being rolled out to agencies, ministries and

districts. In this, Tanzania is a pace setter in the Sub-Saharan Africa

region.However, the procedures and controls for public expenditure

management are still conspicuously weak in three important areas: (i)

procrument; (ii) internal audit; and (iii) OCAG: (i) ProcurementThere

has been no comprehensive and authoritative set of public procurement

statutory controls, regulations and procedures over the years.

Consequently, as well elaborated in the report of the Presidential

Commission of Enquiry Against Corruption (1996), there has been rampant

corruption and waste in the procurement of goods and services by some

public officers. While there have been some public procurement reform

initiatives since mid-1990s, little, if any, real progress has been

attained.The NASCAP emphasizes the need for procurement reforms. As

result, a draft Public Procurement Bill and draft "Regulations for

Procurement of Goods and Works" have been completed. However, the Bill

has not yet been presented to Parliament for enactment. This can be

anticipated to happen after the new Parliament convenes in early 2001. In

any case, besides the finalization and implementation of the new statutory

and regulatory framework, improving public procurement on a sustainable

basis will require considerable and sustained efforts in capacity

building for this public service function. (ii) Internal AuditAn

effectively performing internal audit function supports and reinforces the

internal controls for safeguarding proper custody, use and accounting for

the resources of any organization. While the GOT has had an Internal Audit

Department in the Ministry of Finance (MOF) and other ministries, the

function has never been effectively carried out. Three main factors

explained this situation. First, the system and procedures for internal

audit are nowhere documented to guide the officers responsible. Second,

the function is poorly staffed in terms of both quality and numbers of

personnel. Thirdly, and probably the most important, there was limited, if

any, demand for regular internal audit reports by public service managers.

There are plans to strengthen the internal audit function under the

ongoing Government Accounts Development Project (GADP) which has for

several years been implemented with support from SIDA and DFID. (iii)

Mandate and Capacity of the Office of the Controller and Auditor General

The OCAG is established in the Constitution to promote and safeguard

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financial accountability in the custody and use of public resources. The

Exchequer and Audit Act of Parliament requires the CAG to certify that:

all revenues due are collected and deposited into a consolidated fund; all

monies are drawn out of the consolidated fund on the basis of specific

provisions in the Constitution or as appropriated by an Act of Parliament;

the monies disbursed have been applied to the purpose for which they were

appropriated; and there has been compliance with the prescribed financial

rules, procedures and regulations. In all these respects, the capacity and

performance of the OCAG have remarkably improved in recent years. This has

been made possible by the technical assistance received from a number of

development partners, and especially DFID. However, the performance of

the OCAG is still significantly constrained in three important respects.

Firstly, the mandate of the office has traditionally provided for the

restricted function of checking compliance and did not allow for value for

money audits, which considerably reduces the value of the function.

Secondly, while the CAG has been constitutionally empowered to make

independent decisions and report directly to Parliament, the office is

denied independence of operation because it wholly depends on the MOF (its

primary auditees) for funding and the Civil Service Department (CSD) for

staff appointments and compensation. Thirdly, in part as a consequence of

the second, the office has too limited a number of skilled personnel to

carry out its audits on an efficient, effective and timely basis.

Government has acknowledged the need to address these constraints. In the

National Framework on Good Governance (December 1999), it is stated that

to improve financial accountability as well as control of value for money

in government spending, there has to be an effective external audit

capacity. Also, Government has embarked on changing the Exchequer and

Audit Ordinance with a view to, inter alia, granting the OCAG operational

autonomy and giving the mandate to carry out value for money audits. There

are also indications that DFID and other development partners (SIDA?) are

willing to support capacity building in the OCAG. (iv) National Board of

Accountants and Auditors (Marius/Brian Falconer to add) (v) Poor

management of records, data and informationIn the 1999 Tanzania Assistance

Strategy (TAS) report, a five year policy and strategic framework for the

national development agenda, the GOT has well described the current

situation, constraints of the management of records, data, information and

communication and the implications of the poor performance in this area.

Records management systems are mostly obsolete and overwhelmed by the

newly emerging requirements for speed and consistency. Paper-based

systems have almost broken down and the gradual build up of redundant

paper is causing severe retrieval problems, with high costs in terms of

wasted office accommodation, equipment and staff time. Information cannot

be located when required; financial audits cannot be carried out

effectively; and the success or failure of development initiatives cannot

be fully evaluated for timely adjustments. Consequently decision-making

and effectiveness of public service managers at all levels are impaired by

lack of accurate, reliable and timely information. Furthermore, in absence

of information, accountability and transparency cannot be achieved, and

corrupt and unethical practices are difficult to unearth and follow up.On

the other hand, a lot of data and information is produced, analyzed and

disseminated by various agencies in the Government, the NGOs, the private

sector and donor community. However these efforts are not coordinated. As

a result, important information is not adequately analyzed and

disseminated, and has limited use. In 1995, with technical assistance of

DFID, Government started the implementation of a project to begin to

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address the problems of records management within the framework of the

PSRP. The pilot phase of this project has now come to an end, and a

second phase is under design with DFID support. All indications are,

however, that the task at hand, including the development of the necessary

infrastructure may exceed the resource envelop of a single development

partner. In the TAS, Government has defined a more comprehensive strategy

to address the issues of data and information quality, availability and

communication. Among the measures proposed are the following key

ones:strengthening key data collection, processing and analyzing

institutions. Targeted institutions would include the National Bureau of

Statistics (which has been relaunched as an autonomous agency), other

MDAs, Ministries, Departments and Agencies, NGOs and advocacy

agencies;continuing with the creation of new efficient and effective

paper-based record systems;developing of a national records center and

reinforcing the existing National Archives;modernizing information and

communications systems in government offices; andintroducing electronic

records systems and establishment of an appropriate framework for managing

public records. (TAS, pp. 23/24).2.2.5 Weak oversight and watchdog

institutions (OWIS)Historically, compared to other countries in Africa,

Tanzania has led the way in the establishment of oversight institutions

for good governance. In 1966, it was the first developing country to

legally establish the office of Ombudsman (Permanent Commission of

Enquiry, PCE) then following a Scandinavian approach. Also, Tanzania was

a pioneer in legislating the Prevention of Corruption Act in 1971, and

establishing a national anti-corruption squad (PCB) in 1975. Again in

l9XX, the country set an example in introducing a leadership code of

ethics, and establishing an Ethics Secretariat whose executive officer is

Judge of the High Court. These institutions were additional to the more

conventional ones, i.e., the Police, Criminal Investigations Department,

Director of Public Prosecutions (DPP), the CAG, and Parliament and its

Committees, etc. Yet, in spite of this multiplicity of institutions, the

country continues to face serious governance problems. Evidently, these

oversight institutions have been and remain weak. These weaknesses emanate

from the common maladies that have afflicted other public institutions,

including: underfunding of operations, inability to recruit and retain

well qualified and strongly motivated officers, overlapping mandates that

give rise to conflicts, absence of the necessary collaboration and

coordination of the institutions, etc. Hence, the Government's programs

for good governance, and particularly those for anti-corruption and legal

sector reform specifically target to rationalize the mandates and

functions of these institutions, strengthen their capacities and improve

coordination of their operations. Government has also recognized that in

pursuit of good governance, it is not enough to strengthen only public

sector institutions. In The National Framework for Good Governance,

Government states that civil society institutions (i.e. NGOs, CBOs,

religious societies, trade unions, charities, clubs, cultural groups,

sports associations, special interest groups, professional associations,

academic and research institutions, etc.) constitute a strong instrument

for the effective participation and involvement of the people in

decision-making, and social, political and economic development

activities. Also, civil society organizations have a crucial role in

informing and sensitizing the people, and thereby strengthening public

demand for accountability by leaders and services providers.In the same

document, it is recognized that civil society organizations in the country

have considerable capacity weaknesses, in areas of problem analysis,

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advocacy, outreach, networking, management, revenue raising,

accountability and responsiveness. A recent independent review concluded

that civil society organizations in Tanzania are very weak even as

compared to those in other East African countries [Joel Barkan,

2000].Professor Mukandala, in a paper presented in June 2000 [Stakeholders

Workshop on Accountability and Transparency], points out a key factor

that underlies weaknesses in the civil society organizations, and the

implications for accountability in the country. According to Mukandala

most of the past and ongoing reform programs have concentrated on the

supply side of the accountability equation, i.e., getting the state side

"to be accountable to the public". However, this approach can work only

as long as it continues to be reinforced by the (external) donors of the

accountability programs. Continued accountability of state institutions in

the long run will require strengthening of the institutions that represent

the demand side of the accountability equation, i.e., civil society

organizations, the mass media organizations and political parties.These

conclusions imply the need for more innovate and inclusive

donors-supported approaches to strengthening institutions for good

governance. Government has called for measures to promote civil society

organization's effectiveness for good governance (NFGG, p.13). However,

the challenge of designing and implementing an efficient and effective

program to strengthen the demand side institutions in the accountability

equation remain. 2.3 The Government Strategic FrameworkAs described in the

NFGG, the strategic framework for building good governance chosen by the

GOT is multi-point and comprehensive, focusing on the following:(a)

Participation of the people in decision-making for social, political and

economic development; (b) Legal and regulatory framework for private

sector development;(c) Constitutionalism, the rule of law, administration

of justice and protection of human rights;(d) Gender equity;(e)

Accountability, transparency, and integrity in management of public

affairs;(f) Electoral democracy; and(g) Greater public service

capabilities to deliver services efficiently and effectively. This

holistic approach reflects the understanding that attainment of good

governance at the national level entails a wide front of inclusive

strategic measures that cover central and local governments, the private

sector and the civil society. Furthermore, this comprehensive strategic

framework underscores the linkages among the various areas of focus. It

is, nonetheless, thereby feasible to formulate specific strategies and

action programs, such as has been done with the NASCAP and LSRP, without

loosing sight of the ultimate goal and the complementarity of the proposed

interventions.

2. Objectives

In recent years, the Government of Tanzania (GOT) has embarked on an

ambitious reform agenda: public service (PSRP), public finance (PFRP) and

local government (LGRP). In addition, it has just defined, in close

collaboration with its development partners (DPs), comprehensive

anti-corruption and legal sector reform (LSRP) programs. This holistic

strategic approach to improve its governance system is reflected in "The

National Framework on Good Governance" (GOT, December 1999). IDA would

like to support these efforts through a program that would complement the

assistance presently provided for ongoing reforms by other development

partners and by IDA itself. The proposed operation is designed as a

comprehensive program that assumes the participation of several

development partners (DPs). IDA is already informed of overall donor

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interest in supporting all the program's components described in the

present document. IDA will work closely with these DPs to define how best

to join forces to maximize the benefits for Tanzania's good governance

agenda.The primary objective of the Accountability, Transparency and

Integrity Program (ATIP) is to support the implementation of Tanzania's

strategic framework for good governance. ATIP aims at improving outcomes

and impacts of development programs on the poor by enhancing the quality

of governance. This will be done through: (i) strengthening the legal and

judicial systems; (ii) enhancing public financial accountability; (iii)

strengthening oversight and watchdog institutions (OWIs), particularly,

supporting the drive to combat corruption; and (iv) improving

coordination, management and monitoring and evaluation (M&E) of

Government's programs aimed at enhancing transparency and integrity for

greater accountability. The IDA project would support these four

components and would seek to complement other DPs' programs/projects in

these areas.

3. Rationale for Bank's Involvement

The Bank's support is important in the following manner:First, in February

1998, the Bank conducted a comprehensive anti-corruption mission in

Tanzania at the request of President Mkapa. The main findings of the

mission are taken into account in the implementation of the key ongoing

reforms such as the PSRP; other crucial elements of a program to enhance

transparency and accountability such as procurement would form part of the

proposed operation.Second, this support is more encompassing and therefore

preserve the comprehensiveness of the Government's good governance

initiative. Without this more comprehensive approach, it is highly

doubtful that there will be any appreciable and sustainable progress in

this area for the foreseeable future. While several developement partners

have either indicated or confirmed their support to the program, important

components and subcomponents of the program would remain unfunded without

Bank support. Third, Bank's participation in the Government's good

governance program could be expected to reinforce the commitment of the

other development partners: (i) the Bank's involvement will strengthen

dialogue with Government on the sector and program issues and will test

Government's commitment to institutional changes; and (ii) the prospects

of timely realization of the outcomes and impact of the project are

considerably raised by Bank's participation in support of the program

through the proposed project. It appears also that the Bank is the only

partner so far willing to put the major effort that will be required to

tackle public procurement reforms. It is hoped that by showing some

leadership in this area that other partners would join this effort.Fourth,

through the proposed project, Bank will advance and sustain the outcomes

realised through the FILMUP such as (i) work commenced on institutional

development in the legal sector and in the training and regulation of

accounting and finance professionals; (ii) legal sector reforms and

updating of important laws such as the Companies Ordinance that has yet to

be presented to Cabinet; and (iii) strategic plans for the regulatory

environment and the development of the accountancy profession.Fifth, the

areas to be addressed through the proposed project will address some of

the key issues identified as bottlenecks to enhanced growth of the

Tanzania economy, as reflected in the CAS and the recently concluded PSAC.

4. Description

The Project will have four main components, as follows: (a) Strengthening

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legal and judicial system (b) Enhancing public financial accountability

(c) Strengthening oversight and watchdog institutions (d) Program

management and coordinationStrengthening legal and judicial systemThe

project will support select components or sub-components of the

Government's medium term strategy and action plan for the LSRP in

collaboration with other DPs. Technical assistance, including

consultancies, training, computers and other office equipment and

vehicles, and publishing and disseminating materials contribute to

achieving the following key outputs:an updated and modernized legal and

regulatory framework; greater independence of the judiciary;strengthened

management and coordination of legal sector institutions;enhanced

competence, motivation and integrity of personnel;improved pre-service

training of legal professionals;better access to justice for the poor and

the disadvantaged; and improved work environment for legal and judicial

officers.In addition, the project will fund civil works/rehabilitation

costs for select high priority structures in the legal sector,

possibly:Chambers for the Court of Appeal judges;The Law School;

andPrimary and districts magistrates courts.Enhancing public financial

accountabilityThe project will support activities leading to five key

outputs contributing to greater financial accountability:An effectively

functioning transparent public procurement system. Major interventions to

be supported in this area will include: drafting new laws, regulations,

procedures and controls that will govern procurement by all public

agencies; facilitating local training institutions to develop a curriculum

and capacity to train a procurement cadre for the public service; and

other capacity building measures to establish procurement units in MDAs

and to contract out services.An effectively functioning internal audit

system. Development of the internal audit function now considerably lags

behind the milestone development that the country has made in other facets

of public financial accountability. The project will support the design

and implementation of a cost-effective internal audit system.

Interventions will include consultancies, training, computers and other

office equipment and vehicles. It is envisaged that work in this area

would be done in close collaboration with SIDA.An OCAG that is independent

for staffing and funding, and performs its functions with efficiency and

effectiveness. Attaining the independence of the OCAG is already leveraged

in the recently approved PSAC (?). The project will make available the

assistance needed to improve the capacity of the office through training

of staff in new and modern audit techniques (especially audit of computer

systems and value for money audits), equipping the OCAG's offices in the

districts, and procuring transport to facilitate travel to remote rural

service delivery centers for audit.Enhanced standards and effectiveness of

the accounting profession in the country. Under the just closed FILMUP

(IDA Cr. No. 2413-TA), the Bank provided support for strengthening and

consolidating the key institutions for development of the accounting

profession in Tanzania. In particular, technical assistance, training and

other capacity building measures, and investments in infrastructure were

provided to accountancy and finance training institutes, and the National

Board of Accountants and Auditors (NBAA) which has the statutory mandate

to develop and regulate the accounting profession in the country. Still,

the accounting profession needs to be further developed in Tanzania.

Furthermore, preliminary findings of the Implementation Completion Report

(ICR) of the FILMUP indicate the need for additional assistance,

especially for the NBAA, to sustain the outcomes realized under that

project. Studies carried out during FILMUP's extension also confirmed this

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need. The ATIP will make available this support to the NBAA and the

accounting profession in general.Effective records management and

information dissemination systems in MDAs. In the past four years, the

GOT has piloted a program for improving records management in MDAs through

two successive projects funded by DFID under the PSRP. However, the

scope and coverage of this project have been limited to registry systems

in some MDAs. Furthermore, while the evaluations of these DFID projects

have clearly identified the need for a National Records and Archives

Center in order to develop a sustainable public service records management

system, the funds to build this center have not yet been available. The

ATIP will provide: (i) on a demand-driven basis funds for the

implementation of MDAs' strategies and action plans for development of

their records management and information systems (this will be within the

same strategic framework for improving the MDA's service delivery

standards under the PSRP), and (ii) support to the construction and

equipping of the National Records and Archives Center.Strengthening

oversight and watchdog institutions (OWIS)This component aims at

strengthening the demand side of the accountability equation. In this

regard, at this stage of project development, it is clear that technical

assistance will be needed under the project to, as a priority, rationalize

the mandates, roles and functions of the plethora of public OWIs that have

been established over the years (see section B. 2.26).It is, nonetheless,

anticipated that among the public OWIs that will receive technical

assistance to build their capacity and improve their performance are: (i)

the Prevention of Corruption Bureau; (ii) the relevant Committees of the

Parliament (and Parliament?); and (iii) the MDAs will also be supported to

implement their anti-corruption and action plans on a demand-driven

basis, provided that the MDAs meet specific criteria. The project will

also provide technical assistance to develop and strengthen the operations

of civil society organizations that are active watchdogs on public

accountability. The plan is to deliver this support on a demand-driven

basis. In this context IDA would integrate in its approach lessons

learned from others presently involved in supporting IEC for civil

society, e.g., the Netherlands, UNDP, EU and others.Program Management and

CoordinationThis component has three sub-components:First, strengthening

program management and coordination. The project will provide the

technical assistance and means needed to ensure that the "Accountability,

Transparency and Integrity" coordination unit that Government has decided

to establish in the Office of the Chief Secretary/ Head of the Public

Service functions efficiently and effectively. Second, independent

Monitoring and Evaluation (M&E) of public accountability. The project will

fund contracts for developing and maintaining a cost-efficient system for

the M&E of public accountability by an independent agency. Third, a Fund

for Enhanced Accountability and Transparency (FEAT). The project will

establish and operate this fund as a vehicle through which all the various

demand-driven interventions will be supported under the project. Areas for

such interventions that have already been identified include support to:

(i) MDAs in developing their records management and information

dissemination systems, and implementing their anti-corruption action

plans, and (ii) develop and strengthen the watchdog functions of civil

society organizations.

Strengthening legal and judicial system

Enhancing public financial accountability

Strengthening oversight and watchdog institutions

Program coordination and management

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5. Financing

Total ( US$m)Total Project Cost 100

6. Implementation

The project will be implemented over a five year period. It is envisages

that capacity for financial management and procurement will need to be

built for the implementation of ATIP. The project will be overseen by the

coordination unit in the Office of the Chief Secretary. Specific

arrangements are as follows:4.1 A coordination unit under the Chief

Secretary/Head of the Public Service: The project's design places the

primary responsibility for implementation with the leadership and

management of the various institutions. Accordingly, the Chief Executives

and Permanent Secretaries of beneficiary institutions will be responsible

for the implementation in their respective organizations. However, the

office of the Chief Secretary will need to be strengthened to take on a

more active role in coordinating DP activities in the areas of good

governance including anti-corruption.4.2 A program management support unit

in the Ministry of Justice and Constitutional Affairs: The GOT launched

in December 1999 a comprehensive legal sector reform program. To give

impetus to the reform program, a legal sector reform steering committee

chaired by the Chief Justice was instituted; and inter-agency task forces

(ITTs) established to spearhead each of the key areas of the legal sector

reform program. In addition, it was decided to set up a Program

Management Support Unit in the Attorney General's Chambers. The unit

will: (i) provide technical, secretariat and other administrative support

to the Steering Committee and the ITTs, (ii) monitor and report on

progress in the implementation of legal sector reforms, and (iii)

publicize the activities and changes in the legal and regulatory

framework.4.3 Coordination with other reform programs through the IMTC and

the IMWG: The overall coordinating mechanism for the reforms (public

service, local government and sectors) is the responsibility of the

existing committee of all Permanent Secretaries (Inter-Ministerial

Technical Coordination--IMTC) chaired by the Chief Secretary/Head of

Public Service. An inter-ministerial working group chaired by the Director

Operations, PCB, provides technical coordination for the implementation of

the NACSAP.4.4 Monitoring and evaluation arrangements: The coordination

unit in the Chief Secretary's office will provide: (i) leadership for the

implementation of the GOT's good governance agenda; (ii) active monitoring

of various GOT and DP programs; and coordination with the ongoing reform

programs. Monitoring and evaluation will cover output and outcome

assessment responding to public expectations for accountability,

transparency and integrity. Through integrity and public service delivery

surveys improvements will be monitored. The results will be widely

disseminated to the public as part of the effort to empower citizens to

demand greater accountability from the public service. (Need to look at

overall M & E issue and capacity).4.5 A demand-driven flexible funding

mechanism: To operationalize the approach of predominantly demand-driven

interventions (see section B 3.2 above), a flexible fund for capacity

building will be put in place. The fund will have two windows: (i) support

ministries in the implementation of their action plans for

anti-corruption; and (ii) empower civil society to demand accountability,

transparency and integrity from Government. The window that supports

ministries will be closely linked to the performance improvement model

being implemented as part of the PSRP. The other window will provide

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access to funds for IEC (information, education and communication)

activities by civil society organizations aiming at educating the civil

society with respects to its rights and obligations to demand

accountability from public institutions. Clear guidelines to access these

funds will need to be developed. The latter window will have to be closely

coordinated with activities being undertaken by the Local Government

Reform Program.

7. Sustainability

Factors likely to be critical for the sustainability of project benefits

include:(a) Sustaining the political will and commitment of the top

leadership to attain good governance, and particularly persist with and

strengthen the fight against corruption;(b) Incentives for the public

service managers to implement this project, as well as other complementary

reform programs and projects;(c) Adequate Government funding of the public

legal and judicial institutions in line with the recent categorization of

the sector among the priorities under the MTEF.

8. Lessons learned from past operations in the country/sector

Among the key lessons learned and reflected in the proposed project design

are the following: [see FILMUP ICR](a) A comprehensive approach is more

efficient and has more sustainable outcomes. The excess of small,

disjointed interventions by several development partners has often

resulted in overlapping, waste, and overburden on GOT's capacity and

yielding limited sustainable outcomes. Therefore, the proposed project is

embedded in the Government's holistic framework for building good

governance.(b) Strengthening the demand side of the accountability

equation is crucial. To complete the accountability cycle, and therefore

achieve timely and sustainable outcomes, it is important to strengthen the

OWIs and civil society organizations that promote demand for public

accountability.(c) Mainstreaming implementation in the agencies

responsible for good governance. Evaluations of Bank projects have

confirmed that the enclave/ project implementation unit (PIU) is not

consistent with sustainable capacity building and sustainability of

project outcomes. Furthermore, with such enclave arrangements, it is

difficult to foster and sustain any strong commitment and support in the

leaders and managers of the good governance agencies. Therefore the

implementation roles and functions for the various components of the

proposed project will be the direct responsibilty of designated officers

within the agencies responsible for good governance. (d) The need for

effective M&E. Without an effective M&E system, there is a pitfall that

failure of project inputs to yield the expected outputs and outcomes will

go undetected. Also, in the abscence of the M&E key outputs and outcomes

indicators, there is no objective basis for proper accountability to the

project beneficiaries. (e) The value of effective information, education

and communication (IEC) interventions. Besides implementing the actions

that contribute directly to the project outputs, it is considered

benefitial for both accountability and sustainability of the project

outcomes to have regular communication with the beneficiaries to inform

and educate them on the objectives of the Government program and the

inputs and outputs in the project implementation.

9. Program of Targeted Intervention (PTI) N

10. Environment Aspects (including any public consultation)

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Issues None

11. Contact Point:

Task Manager

Denyse E. Morin

The World Bank

1818 H Street, NW

Washington D.C. 20433

12. For information on other project related documents contact:

The InfoShop

The World Bank

1818 H Street, NW

Washington, D.C. 20433

Telephone: (202) 458-5454Fax: (202) 522-1500

Web: http:// www.worldbank.org/infoshop

Note: This is information on an evolving project. Certain components may

not be necessarily included in the final project.

This PID processed by the InfoShop during the week ending December 8, 2000.

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