Large amounts to combat COVID19 and mitigate its socio-economic impacts.

According to the IMF, approximately USD 9 trillion has been mobilized in the form of direct budgetary expenditures and global support mechanisms. Funding for response plans generally accounts for a significant share of GDP. It represents 1.5 percent of the GDP for Madagascar. Health-related expenditures are only the 4^th largest component of the PMDU budget (Multi-sectoral Emergency Plan).

Graph 1: Health expenditures in Africa

Graph 2: PMDU budget (in USD million)

Delay in setting up and operationalizing the COVID-19 response fund.

Following the civil society and donors’ recommendations, a COVID-19 response fund was adopted in July 2020[1]. This fund refers to the resources dedicated to financing urgent actions in the fight against the pandemic. The operationalization of the fund depended on the establishment of the steering committee, which was only operational eight months after the fund was passed by the Government Council. In the meantime, the Ministry of Economy and Finance (MEF) published financial reports on the use of COVID-19 funds in December 2020.[2]

Risks of corruption in times of health emergency

Articles 38 and 39 of the CMP[3] come into force: it is possible to award public contracts over the counter or in restricted tender in times of health emergency. The MEF’s COVID-19 reporting recorded 124 public contracts which amounted 11 billion Ariary. Corruption scandals have been noted: the famous “candy” story within the Ministry of National Education and suspected favoritism in the allocation of materials and equipment. The Malina network recently broke the omerta on the juicy mask markets[4]. South Africa went through a series of scandals involving 600 corporate cases relating to contracts for the supply of equipment, social assistance and food distribution as well.

Measures to mitigate corruption risks

To mitigate these risks of corruption, it is interesting to take the following measures:

• In the long term:
  • The revision of Law 91-011 of 18 July 1991 on exceptional situations;
  • Mapping the risks of corruption specific to the health sector;
  • Strengthening citizen participation;
  • Implementing a law on the protection of journalists and whistleblowers and an Access to Information Act:
  • Strengthening judicial control in emergencies (Supreme Constitutional Court (HCC), Court of Auditors and Administrative Tribunals) and interventions by anti-corruption institutions (BIANCO, SAMIFIN, PAC);
  • Improving the synchronization of SIGFP and SIGMP (computerized system of public finance/contract management);
• In the short term:
  • Identifying or pre-marking all expenses related to the fight against the COVID-19 pandemic;
  • Excluding non-COVID-19-related expenses;
  • Strengthening the organizational framework for data consolidation between ARMP or Public Procurement Regulatory Authority (SIGMP), MEF and sector ministries;
  • Better actors’ involvement following the example of the CSI (Committee for the protection of integrity) and the State Inspectorate General;
  • Continued transparency efforts through the publication of monthly financial reports on the use of COVID-19 funds.

[1] Decree No.2020-725 creating the COVID19 response fund.

[2] http://www.mef.gov.mg/reportingcovid

[3] Public Procurement Code

[4] https://malina.mg/fr/article/omerta-sur-le-juteux-marche-des-masques-anti-covid-