Tuesday, January 02, 2007

New System for the Special Allowances

One of the many things that needed cleaning up is finally getting swept away, reports the Taiwan News:

The Cabinet hopes the new system will help dispel any doubts over the system's viability and keep a clear accounting of the public funds.

Several government agency heads, including Ma, were charged with misuse of their special allowances in 2006, not only causing a stir and denting Ma's reputation for integrity, but also casting doubt on the process.

Political commentators and opposition parties suggested that the system itself was at fault because it put officials in a position where they could be seen as embezzling public funds without realizing they were doing so.

Under the old system, the heads of agencies had half of their special allowances remitted directly to personal accounts or handed over in cash or by check for their discretionary use without further accountability.

Most officials had no idea how much of these funds they used on public tasks, nor did many return any unused portions of the funds to national coffers.

As a result, the Cabinet-level Directorate-general of Budget, Accounting, and Statistics announced a new special allowance procedure in November 2006 to take effect January 1, requiring officials to submit receipts or invoices as well as written documents to prove their expenditures were related to public business before they can be reimbursed from their special allowance.

As long as officials could download public money directly to their own accounts and not give receipts, the System was practically begging them to be corrupt. No question that this is an important step forward in cleaning up the island's officialdom.

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