The US warned that Nicaragua did not meet the requirements of fiscal transparency and demanded the audit


The US warned that Nicaragua did not meet the requirements of fiscal transparency and demanded the audit of cooperation funds with the Maduro regime.

The "Financial Transparency 2021" report is a State Department-requested document by Congress that exposes how governments around the world invest in their budgets and tax revenues.

In Nicaragua, the Daniel Ortega regime failed to meet the US State Department's requirements for fiscal transparency last year. According to the annual report released this Friday, the budgets released by the Nicaraguan Executive did not offer a substantial overview of planned expenses or sources of income.

The report "Fiscal Transparency 2021 "is a document requested by the US Congress from the State Department that exposes how the world's governments invest their budgets and income generated by taxes.

The document evidences the extent to which executives meet the minimum transparency requirements and offers a window to citizens on their administration. It also helps establish market confidence and sustainability.

The State Department concluded that 74 of the 141 countries met the minimum requirements for financial transparency in 2020, and 67 did not. Within the latter and Nicaragua, the region's nations indicated are El Salvador, Ecuador, Haiti, and the Dominican Republic.

In the case of the Ortega regime, the brief maintains that "publicly available budget documents did not provide a substantially complete picture of the government's planned revenue and expenditure streams. Some information on debt obligations was publicly available. Still, information on contingent debt and state corporate debt guaranteed by the government was not available," he said.

He then underlined that budget documents were not prepared by internationally accepted principles. The government did not break down expenditures to support the president's office. That large major state-owned companies did not have audited financial statements available to the public.

"Allocations and profits of some state-owned companies were included in the budget on a net basis, but most state-owned companies, including Albania, Nicaragua, and Venezuela's state-owned oil companies, have not been audited. indicated; while emphasizing that "the supreme audit entity did not comply with international standards of independence and did not audit the budget executed by the government ."

The State Department report noted that the criteria and procedures by which the national government grants contracts or licenses for the extraction of natural resources were described in the law." However, it is not clear if the process used in practice to grant adjudications has been consistent with the law."

Finally, the document gave some recommendations to improve the fiscal transparency of the country. The Ortega regime should :

- Prepare budget documents by internationally accepted principles;

- Detailing the allocations and income of state enterprises;

- Publication expenses to support the office of the president;

- Post income, expenses, and debt obligations outside the budget;

- Ensure that the supreme audit entity complies with international standards of independence;

- Make full audit reports available to the public for major and large state-owned companies; conduct a full audit of the budget executed by the government; Y

- Make the audit reports available to the public within a reasonable period.