The Institute of Economic Affairs (IEA), Ghana Parliament’s Role In The Fight Against Corruption By DR. ALBERT KAN-DAPAAH Director of Centre for Public Accountability, University of Professional Studies, Accra Former Chairman, Public Accounts Committee, Parliament of Ghana Abstract In the late eighties and early nineties Ghana embarked on an agitation for Good Governance. We demanded: Human Rights, Media Freedom, Law and Order, Personal Liberties and Parliamentary Democracy. These were the governance challenges at the time. Today, we have achieved virtually all of these demands. Democracy is well planted in our dear country. Consequently, there has been a paradigm shift in our governance challenges, which includes ensuring financial accountability in the public sector. In broad terms, this paper discusses the role of Parliament as the key accountability institution in the fight against Corruption. It also examines the relevance of the Public Financial Management (PFM) system in the fight against corruption, and reveals that key accountability mechanisms are not allowed to operate in the budget cycle; and the specific oversight roles of parliament have not been performed effectively. The paper concludes with some solutions to the anomalies. 1This paper was prepared for the Institute of Economic Affairs, Accra, Ghana. The conclusions of this paper are those of the author. About Us CONTENTS 1.0 PFM and The Budget Cycle.................................................................................................6 2.0 The First Phase of the Budget Cycle....................................................................................7 The Institute of Economic Affairs (IEA) Ghana was founded in October 1989 as an independent public policy institute dedicated to the establishment and strengthening of 2.1 Recommendations...........................................................................................................10 a market economy and a democratic, free and open society. It considers improvements in the legal, social and political institutions as necessary conditions for sustained 3.0 The Second Phase of the Budget Cycle.............................................................................12 economic growth and human development. 3.1 Recommendations...........................................................................................................11 The IEA supports research and promotes and publishes studies on important economic, socio-political and legal issues in order to enhance understanding of public policy. 4.0 The Third Phase of the Budget Cycle................................................................................13 Further information may be obtained from; 4.1 Recommendations..........................................................................................................14 The Institute of Economic Affairs, 5.0 The Fourth Phase of the Budget Cycle..............................................................................15 P. O. Box OS 1936, Osu, Accra, Ghana. Tel: +233-0302-244716/+233-0307-010714 5.1 Recommendations........................................................................................................17 Fax: +233-302-222313 Email: [email protected] 6.0 The Oversight Role of Parliament.....................................................................................17 Website: www.ieagh.org www.facebook.com/ieagh 7.0 Conclusion.........................................................................................................................22 www.twitter.com/IEAGHANA 8.0 References.........................................................................................................................24 2015 Copyright Printed in Ghana. All rights reserved. No part of this work may be published, used or reproduced in any manner without written permission of the publisher except in the case of brief quotations in critical articles and reviews. Publication of this work signifies that The Institute of Economic Affairs regards it is a competent treatment worthy of public consideration. The findings, interpretations and conclusions of this paper are entirely those of the authors, and should not be attributed to The Institute of economic Affairs or any organisations that support it. The research and publication has been made possible with funding from the International Development Research Center (IDRC) and the Think Tank Initiative (TTI) The Institute of Economic Affairs, Accra Ghana 3 About Us CONTENTS 1.0 PFM and The Budget Cycle.................................................................................................6 2.0 The First Phase of the Budget Cycle....................................................................................7 The Institute of Economic Affairs (IEA) Ghana was founded in October 1989 as an independent public policy institute dedicated to the establishment and strengthening of 2.1 Recommendations...........................................................................................................10 a market economy and a democratic, free and open society. It considers improvements in the legal, social and political institutions as necessary conditions for sustained 3.0 The Second Phase of the Budget Cycle.............................................................................12 economic growth and human development. 3.1 Recommendations...........................................................................................................11 The IEA supports research and promotes and publishes studies on important economic, socio-political and legal issues in order to enhance understanding of public policy. 4.0 The Third Phase of the Budget Cycle................................................................................13 Further information may be obtained from; 4.1 Recommendations..........................................................................................................14 The Institute of Economic Affairs, 5.0 The Fourth Phase of the Budget Cycle..............................................................................15 P. O. Box OS 1936, Osu, Accra, Ghana. Tel: +233-0302-244716/+233-0307-010714 5.1 Recommendations........................................................................................................17 Fax: +233-302-222313 Email: [email protected] 6.0 The Oversight Role of Parliament.....................................................................................17 Website: www.ieagh.org www.facebook.com/ieagh 7.0 Conclusion.........................................................................................................................22 www.twitter.com/IEAGHANA 8.0 References.........................................................................................................................24 2015 Copyright Printed in Ghana. All rights reserved. No part of this work may be published, used or reproduced in any manner without written permission of the publisher except in the case of brief quotations in critical articles and reviews. Publication of this work signifies that The Institute of Economic Affairs regards it is a competent treatment worthy of public consideration. The findings, interpretations and conclusions of this paper are entirely those of the authors, and should not be attributed to The Institute of economic Affairs or any organisations that support it. The research and publication has been made possible with funding from the International Development Research Center (IDRC) and the Think Tank Initiative (TTI) The Institute of Economic Affairs, Accra Ghana 3 IEA IEA Ghana The Role Of Parliament In The Fight Against Corruption The Role Of Parliament In The Fight Against Corruption Ghana THE ROLE OF PARLIAMENT IN THE FIGHT AGAINST CORRUPTION Klitgaard (1998) has explained the link between Corruption and Accountability in a formula which shows that: In the late eighties and early nineties, Ghana embarked on an agitation for Good Governance. The demands were for Human Rights, Media Freedom, Law and Order, Personal Liberties and Corruption = Monopoly + Discretion - Accountability. Parliamentary Democracy. These were the governance challenges at the time. Today, all of these demands have virtually been achieved. Democracy is well planted in the country. Consequently, He argues that one tends to find corruption when an organization or person has monopoly power there has been a paradigm shift in our governance challenges. over the delivery of a good or service. He explains that the monopoly power is made worse when the organization or person also has the discretion to decide who will receive it and how much that Amoako-Tufuor (2008) rightly observed that there are four key governance challenges now. person will get in an environment where there are no sufficient mechanisms to ensure that the These are: organization or person is accountable. 1. Curbing the excesses of Government. According to this model, combating corruption begins with designing better systems, reducing or 2. Ensuring transparency in Governance. regulating monopolies, clarifying official discretions and enhancing transparency. There are 3. Ensuring Participation and Inclusion in Governance and practical difficulties with these recommendations though. Reducing monopolies in the delivery 4. Ensuring Financial Accountability in the Public Sector. of public goods and services is not easy in practice neither is it easy to clarify official discretion with detailed or codified