The public debt auditing and overseeing commission

ECUADOR - In Brief 09 Jan 2018 by Magdalena Barreiro
The Comptroller General is conducting an audit to public debt contracted between 2012 and 2017. The scope of the analysis covers domestic and external debt including Chinese loans and oil facilities despite the claim from the government that this financing does not constitute debt but just a pre-paid crude oil sale. This audit has several objectives among which establishing the real amount of debt and its ratio to GDP to establish the compliance with the legal ceiling of 40% is one of the most important, together with determining the legality of several procedures and legal articles issued by the Ministry of Finance to make those agreements operative during the mentioned period. To accompany this examination, the Comptroller General has asked the technical collaboration from eleven experts from different areas (economic, finance, and legal) among whom I have been nominated. After the first meeting held yesterday, it results clear that this process will result in important legal consequences such as the need to change the debt/GDP ratio and the elimination or change of the mentioned procedures and legal articles. If administrative responsibilities from public officers acting during the period of analysis is established, there might also be necessary the intervention of the Public Prosecutor.Whatever the findings and recommendations of this audit, unilateral default of any of the contracts is not considered neither sought. The ultimate goals are to gain transparency in public debt information and estimation and to return to sound and responsible financing practices.

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