12 December 2008 by Integral Auditing Commission for Public Credit of Ecuador (CAIC)
The incalculable damage caused to the country’s economy and the people of Ecuador by public borrowing, omnipresent as a pressure-submission system, and the consequent commitment of public resources to deliver its service, whether or not available, prompted the national government to adopt the first decision and so far unique in Latin America to create an audit to establish the legitimacy, legality and relevance of the loans, negotiations and renegotiations, which also brought responsibilities and shared responsibility of lenders, social impacts, economic and environmental impacts, and, above all, allowing the accumulation and weight of fundamentals for the country to initiate and sovereign and remedial actions regarding all payments made and future payments as well.
In that context, the Constitutional President of the Republic, Economist Rafael Correa Delgado, ordered the creation of the Audit Commission for Integrated Public Credit (CAIC), with the involvement of domestic and foreign social organizations, universities and research institutions and development.
After a year of hard preparatory work, which involved difficulties in gathering information especially given the period of thirty years due to cover the audit, the CAIC herewith presents an Executive Summary of the final report prepared after thorough examination by its members and teams of professionals formed for the purpose.
The substantive part of the audit lies in the results that contain evidence in each section of the Ecuadorian debt, structured as follows:
I. GENERAL CONSIDERATIONS
The charge of the contracting debts and the audit
The presidential decision, the executive decree enacting and the CAIC creation
II. RESULTS OF THE AUDIT BY PIECES OF THE DEBT
JURIDICAL ANALYSIS OF THE COMMERCIAL DEBT
Credits for debt reduction (Plan Brady) and modernization / privatization
Credits that financed sectorial programs
Credits utilized in the multipurpose project
“JAIME ROLDÓS AGUILERA” implemented by CEDEGE
SECTION IV :
INTERNAL PUBLIC DEBT
EXECUTIVE DECREE No. 472)
AN AUDIT OF SECTORAL LOANS: OBJECTIVES AND RESULTS
NAMES OF PERSONNEL AND INSTITUTIONS WHICH COLLABORATE IN THE COMPREHENSIVE AUDITING OF THE ECUADORIAN DEBT