FLASH
Shkruar nga Pamfleti
The World Bank is skeptical about the government's initiative to make earthquake and flood insurance mandatory. The world's top monetary institution raises concerns about the way the Fund that will administer the scheme is planned to be built and operate.
“The draft law proposes the establishment of the Fund as a state-owned joint-stock company represented by the Ministry of Finance. We have previously shared our concerns with the Ministry on such a model. We recommend the structure of a Fund managed by a professional technical operator, instead of a Joint-Stock Company, and we would like to point you to the model of the Mandatory Earthquake Insurance Pool in Turkey ,” the World Bank states.
The World Bank emphasizes that it has previously shared its concerns with the Ministry of Finance and recommends that the Fund not function as a joint stock company, but be managed by a professional technical operator.
"The CIP is a unique public institution established by a law dedicated to providing earthquake insurance in residential areas in Turkey. It is neither a joint-stock company nor a typical public entity, and is exempt from the standard regulations governing state-owned enterprises, public financial management, auditing, and procurement. Instead, it operates under its own legal and procurement framework," the World Bank said, A2CNN reports.
The international institution emphasizes that the choice of legal structure is critical to ensuring that the Fund is independent, credible and efficient.
“The choice of legal structure is critical to ensuring that the Fund is independent, credible, and efficient, with clear rules for public accountability but with operational flexibility. Ministerial oversight should ideally focus on strategic objectives rather than day-to-day management. As currently designed, the proposed structure could become bureaucratic, with several administrative layers, and highly dependent on government direction, which could limit the Fund’s professional capacity and operational independence, ” the World Bank said.
The World Bank warns that without an independent and professional structure, the Fund risks losing credibility and not functioning properly in the event of emergencies.
Lini një Përgjigje