Doha, December 17 (QNA) - Representatives of international government bodies and civil society organizations said combating corruption is a fundamental condition for economic growth and national recovery.

The remarks came during a session on building coalitions to fight corruption and advance reforms in Asia and the Pacific, held as part of the Conference of the States Parties to the United Nations Convention against Corruption, hosted in Doha from December 15 to 19.

Yao Deng, legal counsel in the International Monetary Fund IMF's governance and anti-corruption division, said corruption's impact is "deep and direct," particularly on small businesses. It undermines domestic revenue mobilization, distorts public spending, weakens institutions, and ultimately limits economic growth.

She explained that the IMF adopted a governance framework in 2018 to guide its work in this area, strengthening efforts across three pillars: economic surveillance, lending, and preventive development. These efforts laid the foundation for a preventive governance diagnostic tool, designed to assess vulnerabilities and provide prioritized recommendations.

So far, the IMF has completed 25 governance diagnostics worldwide, with a focus on African countries, publishing 17 reports. The diagnostics analyze weaknesses across six government functions: public financial management, central bank governance, financial sector oversight, market regulation, rule of law, and anti-money laundering and counterterrorism financing.

Deng said governance diagnostics are typically conducted within the fund's support programs and take no less than four months to complete. She emphasized that the process requires strong national ownership and close, ongoing cooperation with local authorities. The official underscored the importance of analyzing political economy dynamics to understand power structures and networks of influence in each country.

Deng highlighted case studies including Sri Lanka, which in 2023 completed Asia's first comprehensive governance diagnostic under an IMF-supported program. The study found that integrated governance reforms could boost GDP by more than 7 percent, linking governance improvements directly to economic recovery. The reforms included passing an anti-corruption law, activating an anti-corruption fund, publishing asset declarations, and adopting asset recovery legislation.

She also cited Zambia, which published its diagnostic in 2022 followed by an outreach mission to support implementation, and Ghana, which introduced institutional reforms such as stronger legal frameworks for anti-corruption, conflict-of-interest declarations, whistleblower protections, and criminal case management.

Deng concluded that the IMF works closely with civil society after publishing reports, stressing the importance of engaging communities, especially youth, in tackling governance challenges and promoting integrity.

Chethiya Goonesekera, Sri Lanka's President's Counsel and Commissioner of the Commission to Investigate Allegations of Bribery or Corruption, said his country has become the first in Asia to be selected for an IMF governance diagnostic, carried out under the $3 billion extended facility program.

Goonesekera explained that the diagnostic aims to identify weaknesses in combating corruption, strengthen governance systems, and support economic recovery and financial stability, while reaffirming the state's commitment to transparency and accountability.

He noted that the economic crisis of 2022 revealed deep imbalances, with inflation reaching about 70 percent, foreign reserves falling to nearly $20 million, and public debt rising to 128 percent of GDP, alongside severe shortages of basic goods. The IMF considered weak governance and structural corruption among the main factors that exacerbated the crisis.

Goonesekera added that the diagnostic represents a comprehensive assessment of corruption risks across state institutions, covering public financial management, government procurement, rule of law, anti-money laundering and counterterrorism financing, beneficial ownership transparency, and governance of public enterprises, and the final report was released in December 2023.

He said the process relied on a detailed analytical methodology, including reviews of government data, assessments of legal and institutional frameworks, identification of weaknesses in anti‑corruption measures, and broad consultations with the central bank, treasury, and other agencies. Recommendations were prioritized in line with international governance standards.

The results highlighted critical gaps, including weak procurement systems, broad discretionary powers, insufficient internal controls, major financial risks in infrastructure institutions, and shortcomings in cash management and financial reporting.

Goonesekera confirmed that the government has already begun major governance reforms, including updating the 2006 procurement law, issuing new procurement guidelines, adopting a national e‑procurement system, mandating standardized invoicing, strengthening transparency requirements, and making conflict‑of‑interest declarations compulsory.

He stressed that these steps form a cornerstone for the transition period of 2024-2025, contributing to a more transparent and stable state and reinforcing public and international confidence in Sri Lanka's economy.

Meanwhile, Josepine Pitmur of Papua New Guinea's DJAG organization highlighted an institutional action plan to combat corruption, describing it as a program tailored for agencies that emphasizes awareness and independent oversight of project implementation.

She pointed to government measures that have built trust and strengthened cooperation between state and non‑state actors, noting a series of joint leadership partnerships. Such arrangements often take the form of memorandums of understanding that clarify mandates and expectations among all parties, enabling coordinated activities and addressing shared concerns. In this context, Papua New Guinea proposed in 2025 the creation of a financial aid oversight unit to enhance transparency. (QNA)