Quarterly Performance and Financial Report: Public Accountability Activity (PAA) in Honduras

The project aims to contribute to fighting corruption and impunity by building strong accountable institutions, improving procurement, and strengthening public expenditure management. The purpose of PAA is to foster transparency and accountability and the implementation of anti-corruption legal frameworks, thereby improving the business-enabling climate in Honduras to promote a level playing field for investment. The project is aligned with the Plan of the Alliance for Prosperity of the Northern Triangle (A4P) and Open Government Partnership (OGP) Third Action Plan (2016-2018). The project's objectives include improving transparency and effectiveness of public spending, institutionalizing public-private dialogue on transparency, fiscal policy, and anti-corruption issues, and professionalizing the civil service. The country context in Honduras is marked by turmoil following the November 26 election amid allegations of fraud by the opposition and violent protests. However, Juan Orlando Hernandez (JOH) took office for a second term on January 27, 2018, in relative calm, and his government has been recognized by the international community. The government's credibility is weakened by the election fraud allegations and recent cases of corruption. The government has invited the opposition and civil society to a national dialogue and requested mediation by the UN. The elections gave the reigning party, Partido Nacional (PN), control of the executive and 61 out of 128 seats in Congress, where agreements have been reached with members of small parties to ensure that the PN will have support of a majority of congress. The two main opposition parties have large representations, but these are effectively out-flanked by the PN with minority support. The new cabinet is emerging, with one of the first appointments being the new Secretary of Finance, Ms. [Name]. The government has also announced its commitment to transparency and anti-corruption, with JOH stating that honesty and transparency will be a key pillar of his new term. The government has also requested the support of the OAS with the MACCIH's Accompaniment Mission to strengthen its institutions. The PAA project has several key activities, including improving transparency and effectiveness of public spending, institutionalizing public-private dialogue on transparency, fiscal policy, and anti-corruption issues, and professionalizing the civil service. The project has also established a new scheme for the acquisition of medicines with UNOPS of the United Nations. The project's progress is being monitored, and the report comments on the country situation and project work until January 31, 2018. The project's budget information is also provided, including a summary of grant implementation and appraisal, problems encountered and proposed remedial actions, subcontractor progress, and private sector alliances tracking systems. The report highlights the challenges faced by the project, including the election crisis and the delay in critical counterpart meetings, but also notes the progress made and the commitment of the government to transparency and anti-corruption.