FINANCIAL CONTROL TO BE EFFECTED UNDER A NEW SCHEME
Control over the legal spending of funds from the budget and from the EU will be effected under a new scheme. It will be regulated not by one, but by three legislative acts that will supersede the effective law on the state and internal financial control. As the BANKER weekly has already written, the bills are under draft by an expert panel from the Finance Ministry and stipulate a clear differentiation between the auditing and inspection activities of the Agency for Internal State Financial Control (AISFC). In that connection, the Government made a decision on Thursday (October 13) to withdraw the draft bill for amendments to the State Internal Control Act, moved in by the former cabinet. Under the government strategy for the improvement of internal state control, approved at the end of NMSII's mandate, the National Assembly should adopt laws for the state financial inspection and internal audit and for the financial management and control in the public sector.According to unofficial information, the rulers intend to reappoint some of the experts from the AISFC as auditors with the respective ministries. And the audits will be carried out by financial inspectors with a directorate, that will be set with the AISFC for the purpose. It is not yet clear if the scope of financial control would be broadened. The draft bill, withdrawn by PM Stanishev's Cabinet, stipulates that inspections can be made in commercial companies, even if the State's participation in them is 1 per cent. Under the currently effective legislation, that is possible only if the State's participation exceeds 34 per cent.