AMAN discusses governance in investment management in local authorities
AMAN calls for empowering local authorities, promoting the development dimension in municipal investments, and updating the legal framework governing them
Ramallah – The Coalition for Integrity and Accountability (AMAN) held a discussion session on a draft study on governance in the management of investments in local authorities, with the aim of producing practical recommendations to help local authorities improve their management of these investments, and promote the values of integrity and transparency and activate formal and community accountability in their management. The session was attended by representatives from the General Administration for Complaints in the Council of Ministers, the Ministries of Local Government and Finance, the Municipalities Fund, the Financial and Administrative Control Bureau, the Land Authority, the Union of Local Authorities, and various municipalities.
Issam Haj Hussein, Executive Director of the Aman Coalition, opened the session by emphasizing the importance of the role of local authorities in crisis and disaster management, citing the experience of the Gaza Strip as one of the examples that highlights the urgent need to empower these authorities in emergency situations. He noted that local authorities face significant challenges, most notably financial crises, which affect their ability to develop resources and improve the level of services provided to citizens. He noted that these investments are public funds and are therefore subject to the principles of governance and integrity, calling for clear regulations to govern this area, especially given its overlap with other sectors such as the private sector.
The need for a legal framework to regulate local authority investments
Researcher Raeda Kandil reviewed the study, highlighting its main conclusions, namely the lack of a legal framework to regulate local authority investments and a clear and explicit definition of the concept of "investment," which leaves room for interpretation and speculation. Although the Private Sector Partnership Law was issued in 2022, it does not provide comprehensive provisions to ensure transparency and governance. Local authorities also lack clear guidelines for managing their investments, whether on their own or in partnership, which limits their development effectiveness.
Greater attention is needed to achieve the development objectives of investment projects
Participants in the session agreed on the importance of municipalities paying greater attention to achieving the development objectives of investment projects, rather than focusing solely on increasing revenues. They stressed the need to address gaps in the legislative and legal framework, which remains insufficiently regulated and does not respond to the requirements of effective investment management, thereby increasing the risks associated with it. The participants also stressed the importance of developing detailed procedural guidelines to improve the governance of local investments, prepared in partnership between the Ministry of Local Government, the Municipal Development and Lending Fund, the Union of Local Authorities, and the municipalities themselves, with the aim of raising awareness and empowering technical and administrative staff.
The recommendations also stressed the need to strengthen official and community accountability by activating the role of citizens and oversight institutions in monitoring projects and providing effective channels for receiving complaints and objections. They also recommended the need to integrate anti-corruption measures into investment operations, assign specialized staff in each authority, strengthen institutional cooperation with the Anti-Corruption Commission, and develop monitoring and early detection mechanisms to ensure fair and transparent governance in the management of local investments.
