local government legislative councils are also paid by the state in the same

manner. The decisions made by these legislatures, including the budgets, have
to be approved by the state legislature.

73. The revenue sharing between the states and the localities is not transparent
and local governments do not know the amounts assigned to their locality.
While the LGA assigns some sources of revenues to local governments, the
taxes are regulated and collected by the state authorities. The opportunities for
participation of the residents of the locality in the decision making is very
limited as in any case, the real decisions are made at the state levels. Thus the
congruence of the interventions of the local governments with the local
priorities is not ensured, contrary to the goals of decentralization.

74. Going forward, it would be essential to strengthen the autonomy and

capacity of local governments, make the revenue sharing mechanism more
transparent and predictable, and most importantly ensure the broad participation
of the local population on the decision making in local government. The
population should elect the most powerful local government official, the
Commissioner. With regard to local participation, the success of Community
Development Fund (CDF) projects financed by the MDTF provides useful
lessons for local governance in Sudan. The CDF funds projects identified by
communities as their priorities. The role of the communities in the selection and
implementation of these projects and the collaboration with the local
government authorities have contributed to successful implementation and bode
well for the sustainability of the projects. These CDF supported programs have
demonstrated that local governments can work effectively with communities
and citizen participation at all levels of the project participation enhances the
service delivery from the projects.

4.4 Combating Corruption

75. In the 2010, Corruption Perceptions Index provided by Transparency
International, Sudan ranks 172 out of the 178 countries in the survey. Whether
this assessment is right or wrong is not the important issue. The point is that
there is perception out there that Sudan is among the most corrupt countries in
the world, an image that does not foster Sudan's efforts to attract foreign direct
investment, and obtain debt relief and concessional assistance. Furthermore, in
the Sudan Productivity and Investment Climate Survey (PICS) in 2008, private
firms in Sudan cited political instability, lack of transparency and economic
uncertainty as the top three constraints to growth. Strong commitment by the
government to address the reality and perceptions of lack of transparency is
crucial for the growth and poverty reduction agenda.
76. Transparency and accountability in the management of public affairs and
private firms are fundamental for good governance. These influences the reality
and perceptions of lack of transparency as in the absence of transparent and
accountable institutions, lack of transparency is likely to thrive, and besides,
proper assessments based on facts cannot be made and perceptions are like to
differ, and most likely worse than reality. Sudan needs to build open and
participatory governance institutions to underpin its growth and poverty
reduction efforts.

77. Three mechanisms have been introduced to enhance transparency and

accountability in relation to state public finances and to work as preventive tools
to combat corruption. The Illicit and Suspected Enrichment Act of 1989
provides for an annual updating by the government officials of the sources of
any increases in their wealth. That Act established an office of the public
prosecutor to oversee the implementation of its provisions. The National Audit
Chamber Act of 2007 mandated the Chamber to review the financial
performance of the government including revenue collection and expenditures
in comparison to the budget approved by the national and