Regional States will be given the right to carry out audits on budget subsidies and other financial assistance themselves, if new draft legislation tabled to parliament last Tuesday becomes law.

The draft proclamation called the Single Audit Proclamation was criticised by some MPs, who said it violates Ethiopia's constitution.

Articles 94 sub article 2 of the constitution stated the federal government shall have the power to audit and inspect emergency grants, rehabilitation and development assistance, loans and subsidy grants by the central government to federal states.
According to Article 7 of Sub-article 2 of Proclamation no 68/1989, this auditing power should be carried out through the office of Federal Auditor General.

As a result, the federal auditor reviews the annual report that the Ministry of Finance and Economic Development submits to it concerning federal government receipts and expenditures, assets and liabilities, including budgetary subsidies and special grants, extended from the federal government to regional governments.

But the proposed proclamation gives the authority to regional audit offices, saying uniform audit practice and procedures are applied to the regional audits.

Deputy Representative of Government Expenditure Administration and Control Affairs Standing Committee, Meles Tilahun, says the proclamation is issued based on a research finding during the implementation of Business Process Reengineering.

Thus, he said the proclamation prevents the possibility of one account being audited by both offices of the federal and regional auditor generals.

And he refutes the suggestions made by opposition MPs that the proclamation is against the constitution.

The federal government's power emanates from regional states willingness to share their power, not the other way around, he said, adding regions have the right to spend federal government development support in whichever they like. And so do they have the right to audit it, he said.

Opposition MPs said this idea invokes the memory of the famous speech made by the Prime Minister, almost two years back.
Prime Minister Meles said the regional administrations have the authority "that could go as far as burning the money they received as subsidies from the federal government if they wished to do so."

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