There have been delays in the disbursement of funds under certain compacts of the Millennium Challenge Corp., the U.S. Government Accountability Office has noted.
MCC has acknowledged the lags and said it was working alongside partner countries to minimize and eradicate the delays.
According to the GAO report, MCC did not meet its December 2009 disbursement target for compacts with Armenia, Benin, Cape Verde, Georgia, Ghana, Honduras, Lesotho, Mali, Mongolia, Morocco, Mozambique, Namibia, Tanzania and Vanuatu.
“MCC acknowledged that the pace of its disbursements, in some cases, is slower than projected by the general financial plans development when individual compacts were signed. These lags are attributed to a number of factors being addressed by MCC and our partner countries,” MCC Vice President for Compact Planning Patrick Fine wrote in his letter responding to the GAO report.
Fine outlined in his letter several steps MCC is doing to address the lag times, such as conducting more project feasibility work during the compact development process as well as establishing and mobilizing Millennium Challenge Accounts early.
MCC also requires partner countries to update their financial plans on a quarterly basis, Fine added. He explained that this would give MCC quarterly projections it can use as basis for annual commitment targets and disbursement.
“These changes have significantly improved MCC’s disbursement performance against the corporate targets over the past two years without compromising its oversight model,” Fine said.