Announcement of Madagascar Receives IDA Credit for Training of Accountants and Auditors on June 4, 1981

. . FOR IMMEDIATE RELEASE .• world Bank 1 S-18 H Street N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE NO. 81/95 June 4, 1981 MADAGASCAR RECEIVES IDA CREDIT FOR TRAINING OF ACCOUNTANTS AND AUDITORS The International Development Association (IDA) has approved a credit of SOR 9.4 mill ion ($11 .5 mill ion) to Madagascar for a project to provide the country with more commercial accountants and auditors. IDA is the World Bank's affiliate for concessi9nary lending. The project includes measures to develop a suitable legislative framework for the accounting and auditing sector, and aims to increase the level of expertise in these professions. In addition to developing appropriate legislation, the project provides for the establishment and strengthening of educational, training, and professional institutions·. • Funds from the IDA credit wil 1 finance the establishment of an accounting training ceater, the Centre de Formation en Comptabil ite, in Antananarivo, as wel 1 as books, course materials; supplies, services, and equipment required for the center's operations for six years. Madagascar's national audit company, RINDRA, established in April 1979, will receive technical assistance for on-the-job training of its staff in internal audit procedures and control, examination of documents and records, special investi- gations, taxation, preparation of accounts statements, and report writing. RINDRA's internal organization will also be strengthened through a program of staff recruit- ment, execution of professional assignments, negotiation with clients, and fee co 11 ect ion. Training and technical assistance will also be provided under the project to about six to eight private management consulting and auditing firms, to increase their capacity to assist commercial enterprises which need to improve their accounts and management reporting. In addition, the government will undertake a feasibility study of the establishment of a public management consulting company. Malagasy commercial enterprises are expected to benefit from more efficient management, planning, and financial control re~ulting from this project. The IDA credit is for 50 years., including 10 years of grace, and is interest- free, except for a service charge of 3/4 of iz per annum, to cover IDA's adminis- trative costs. The credit will be committed when funds are available . • NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing at the time of n~gotiation of the credit. FORM NO. 1121 (5-76) T E CHN I CA L DAT A • PROJECT: Accounting and Audit Training COUNTRY: Madagascar TOTAL COST: $14.2 mill ion IDAFINANCING: SOR 9.4 million ($11.5 million), standard IDA terms OTHER FINANCING: Government of Madagascar, RINDRA, and private local enterprises, $2. 7 mi 11 ion IMPLEMENTING ORGANIZATIONS: -Ministere de 1 'Economie et du Commerce Antananarivo, Madagascar Telex. 22339 -RINDRA - Malagasy Audit Organ·ization Antananarivo, Madagascar PROJECT DESCRIPTION: The project will provide'the country with more qualified accountants and auditors through: (a) preparation of appropriate legislation, to require enterprises to prepare audited accounts in accordance with specified standards under a national accounting code; (b) establishment and operation of an accounting training cente~, the Centre de Formation en Comptabilit~ and provision of books, supplies and equipment; (c) training and supervisory services to assist the • Malagasy Nationa1 Audit Company (RINDRA); and (d) training and technical assist e for Malagasy management consulting firms, and a feasibility study for the establishment of a public mana~ement con~ulting firm. PROCUREMENT: Contracts for books, training aids, office equipment, and vehicles will be awarded in accordance with the government's normal procurement procedures. CONSULTANT~: A total of 520 man-months of consultant services will be required. • ECONOMIC RATE OF RETURN: n.a. ESTIMATED COMPLETION DATE: 1988 - 0 -