OMAN RESPONSE TO FISCAL TRANSPARENCY REPORT

UNCLAS MUSCAT 000176 SIPDIS SIPDIS STATE FOR NEA/ARP, NEA/RA, EEB/IFD/OMA E.O. 12958: N/A TAGS: EAID ECON PREL MU SUBJECT: OMAN RESPONSE TO FISCAL TRANSPARENCY REPORT REF: STATE 16737 Per reftel request, Embassy Muscat submits the following updated statement for Oman: The government of Oman is generally committed to fiscal transparency and accountability. Fiscal reporting requirements for the government are enshrined in the Statistical Law of 2001. On the first of the year, the Minister of National Economy presents the government's budget to the public and the numbers are subsequently reported by the media. This information is also available on the Ministry of National Economy's website. There is a commitment to report accurate information, though there are figures that are not accessible to the public, such as capital expenditures for national security, actual oil revenues, and surplus amounts that are transferred to Oman's reserve funds, including the State General Reserve Fund and the Oman Investment Fund. Government procurement is becoming more transparent in Oman. The government is currently finalizing a revised tendering law to comply with the provisions of the U.S.-Oman Free Trade Agreement (FTA),which requires Oman to conduct procurement covered by the FTA in a fair, transparent, and non-discriminatory manner. Oman advertises tenders in the local press, international periodicals, and on the Tender Board's website. Results of tender competitions are also posted on the Internet. Oman implemented its first audit law in 1985, with subsequent revisions promulgated in 1991 and 2000. Under the latest revision, the State Audit Institution (SAI),an autonomous body, is empowered to review the expenditures not only of government ministries, but also of majority government-owned companies, government pension funds, public authorities, and entities granted government concessions to exploit natural resources. The SAI's president enjoys ministerial-rank status, and the body reports directly to the Sultan. It produces both an annual report and audit statements of those entities it reviews. The SAI participates in conferences sponsored by international audit organizations. In December 2005, the International Monetary Fund (IMF) issued a report on Oman's observance of standards and codes. The report found that "Omani authorities have strongly committed to adhering to internationally accepted standards and good practices in statistics." While the report further noted that "Oman's macroeconomic statistics are broadly adequate for effective surveillance," it provided recommendations to strengthen the quality of statistical reporting. There are no U.S. Government-sponsored programs that promote accurate disclosure of revenues and expenditures in the national budget. End Statement. GRAPPO