The delay in receiving quarterly injection of about $1.5 million from Taiwan has hurt some local businesses that are awaiting payments from the Marshall Islands government for work completed or materials supplied in the July-to-September period last year.
After weeks of delay, the report was delivered by the Ministry of Foreign Affairs to the Taiwan Embassy in Majuro earlier this week, and will be transmitted to Taipei for review, said Taiwan Embassy officials Wednesday.
Once the review by the Foreign Ministry in Taipei is complete, Taiwan will release fourth quarter — October-December 2010 — funding to the Marshall Islands, said Taiwan Ambassador George T.K. Li.
Taiwan is ratcheting up its accountability requirements for aid that in the past was provided with few strings attached. “The funding was used for construction and other projects,” Li said. “Taipei needs to see the progress and results, then it can remit funds for the fourth quarter of 2010.”
Taiwan annually provides about $10 million to the Marshall Islands, with which it has maintained diplomatic ties since 1998. About $4 million is provided as funding for the government’s national budget and the balance goes to support a variety of projects, from repairs of the government’s capital building to frequent subsidies for the government-owned national air carrier, Air Marshall Islands.
Taiwan funding amounts to nearly eight percent of the country’s annual budget of $130 million.
The report on use of Taiwan funds for the July-September period was completed by the Ministry of Finance on Friday and delivered to Foreign Affairs, said Minister Jack Ading. He said the delay was due to having to collect information from outer island local governments because the Taiwan funding supported many projects on the outer islands, and this took more time to get the data.
Li presented the fourth quarter 2010 “budget support” for the Marshall Islands government of $1 million to Ading on January 6, but the check did not include the quarterly portion of “project” funding that is usually included as part of the quarterly handover of funds. Project funding amounts to about $1.5 million per quarter. “There are a number of continuing projects (receiving ongoing funding),” Li said. “We need to know the results of the work on these projects.”
Li said the reporting requirements are part of accountability and transparency for government funding.
