A coalition of civil society organizations has urged Sierra Leone’s government to improve public debt transparency, advocating reforms to the 2011 Public Debt Management Act. Key recommendations include establishing a debt ceiling, enhancing audits, and ensuring public access to detailed debt information. These measures aim to promote responsible borrowing, good governance, and the country’s sustainable development goals.
A collective of civil society groups has issued a position paper on August 5, 2024, calling for the Sierra Leone government to enhance transparency and accountability in its public debt management practices. The document outlines essential reforms to the 2011 Public Debt Management Act, focusing on responsible borrowing and fostering sustainable development in the nation.
Titled “A Call to Strengthen It Using the Legal Framework,” the position paper stresses the critical need for comprehensive debt information disclosure. The authors advocate for the government to encompass all forms of public debt, including contingent liabilities, guarantees, and on-lending to ensure a holistic view of the country’s financial commitments.
A significant recommendation involves the creation of a public debt ceiling linked to GDP or domestic revenue, intended to regulate expenditures and avert excessive debt accumulation. Additionally, the paper calls for routine external and internal audits of public debt along with strengthened parliamentary oversight on crucial documents like the Medium-Term Debt Strategy and Debt Sustainability Analysis.
Central to the document’s themes are transparency and public accessibility to debt-related information. The position paper urges the Ministry of Finance to make comprehensive debt reports publicly available, detailing the loan terms on its website. It also encourages the elimination of confidentiality clauses in agreements, unless concerning security.
Civil society organizations, including the National Democratic Institute and the Budget Advocacy Network, emphasize that these reforms are vital to promote good governance and mitigate risks of unsustainable debt. They express commitment to collaborating with government bodies and international stakeholders in enhancing the legislative framework governing public debt.
The collective emphasizes that increased transparency and accountability in debt management will educate the public, curb corruption, and contribute to Sierra Leone’s sustainable development objectives.
The call for improved debt transparency stems from ongoing concerns about the management of public finances in Sierra Leone. The existing Public Debt Management Act of 2011 has been criticized for lacking stringent requirements for accountability and oversight. Civil society organizations advocate that enhanced debt transparency is necessary for effective governance, fiscal responsibility, and achieving sustainable development goals, which are pivotal for the nation’s future economic stability.
In summary, the coalition of civil society organizations is pushing for significant reforms to public debt management in Sierra Leone. Their recommendations include establishing a debt ceiling, conducting regular audits, and ensuring transparency in financial reporting. By advocating for these improvements, they seek to foster good governance, inform citizens, and align with sustainable development strategies.
Original Source: politicosl.com
