Fiscal Control in Venezuela: Legal Framework
**Article 43: Competent Bodies for Fiscal Control**
The competent bodies to exercise fiscal control, in accordance with the Constitution of the Bolivarian Republic of Venezuela, the laws, and ordinances, are:
- The Comptroller General of the Republic
- The State Comptrollers
- The Comptrollers of the Municipalities
- The Comptrollers of the Districts and Metropolitan Districts
Sole Paragraph: The fiscal control bodies, the National Superintendency of Internal Audit, and the highest authorities of the bodies and entities referred to in paragraphs 1 to 11 of Article 9 of this Act may exercise their supervisory powers by relying on reports, opinions, and technical studies issued by auditors, consultants, and independent professionals, qualified and registered by the Comptroller General of the Republic, subject to the regulations issued about the latter. In the case of external fiscal control bodies, they may coordinate with the entities controlled so that they pay all or part of the cost of the work.
**Article 44: Comptrollers of States, Districts, and Municipalities**
The Comptrollers of the states, districts, metropolitan districts, and municipalities shall exercise control, supervision, and oversight of revenues, expenses, and assets of the organs and centralized and decentralized entities under their control, in accordance with the law. For such purposes, they shall enjoy functional and administrative autonomy.
**Article 45: Powers of the Comptroller General**
Without prejudice to the powers of the Comptroller General of the Republic, exercising appropriate supervision of a public entity against another comprises the promotion and monitoring of the implementation and operation of internal control.
**Article 46: Scope of Audits and Investigations**
The Comptroller General of the Republic and the other organs of external fiscal control, within their areas of competence, may conduct audits, inspections, audits, surveys, studies, and investigations of any kind and nature in entities or bodies under their control to verify the legality, accuracy, truthfulness, and correctness of their operations. They will also assess compliance and the results of policies and administrative actions, effectiveness, efficiency, economy, quality, and impact of their management.
**Article 47: Access to Information**
Officials of the Comptroller General of the Republic and other external fiscal control bodies referred to in Article 43 of this Act, accredited to perform a control, will have free access to the headquarters and units of entities and bodies subject to the performance. They will have access to any source or system of information, records, instruments, documents, and information necessary for the performance of their functions and the authority to request such information and documents.
Public sector entities subject to control are required to give the representatives of the auditing firms, consultants, or independent professionals, with proper credentials to perform an action, all necessary information regarding the operations explicitly specified by the external fiscal control body contractor.
**Article 48: Binding Recommendations**
The recommendations contained in the reports of any audit or inspection activity, with the permission of the Comptroller General of the Republic or of other holders of external fiscal control bodies, each within the scope of its powers, are binding and therefore mandatory for entities subject to control. However, before making an appropriate recommendation, the highest authorities of the entities to whom they are addressed may apply, by letter, for a review of the recommendations and propose a replacement. In this case, fiscal control officials may ratify the original recommendation or agree to the proposal for substitution.
**Article 49: Coordination of Control Actions**
The Comptroller General of the Republic shall coordinate control actions with the other organs of fiscal control authorities and bodies mentioned in paragraphs 1 to 11 of Article 9 of this Act, within the scope of its powers.
**Article 50: Suspension of Proceedings**
Without prejudice to the preceding article, when the Comptroller General of the Republic orders or practices a performance of control, the other fiscal control bodies should refrain from initiating proceedings. If any is still being conducted, it will be suspended, and they will transmit to it the precautions as may be requested.
**Title II: National Fiscal Control System**
**Chapter IV: Accounts**
**Article 51: Obligation to Report**
Those who administer, manage, or keep resources of authorities and bodies mentioned in paragraphs 1 to 11 of Article 9 of this Act shall be required to form and report the results of their operations and management, in the form, opportunity, and before the national fiscal control, as determined by the Comptroller General of the Republic, by resolution published in the Official Gazette of the Bolivarian Republic of Venezuela. Those who administer or keep, for and on the order of those bodies and agencies, resources belonging to others have the same obligation. Accountability means the obligation to demonstrate formal and material correctness of the administration, management, or custody of resources.
**Article 52: Internal Control and Accountability**
Those who administer or manage resources for any purpose that affects the performance of public interest from authorities and bodies mentioned in paragraphs 1 to 11 of Article 9 of this Act, in the form of transfers, subsidies, contributions, or other similar forms, are required to establish a system of internal control and accountability for the results of their operations and management in accordance with the resolution specified in the preceding article. Managers who engage in irregularities in the management of these funds will be subject to the penalties and remedies in this Law.
**Article 53: Accountability Before Leaving Office**
If the person responsible for rendering accounts ceases to hold office before the opportunity set for training and accountability, prior to removal from office, they are also obliged to form it and make it, in accordance with the provisions of Article 51 of this Law.
**Article 54: Failure to Render Accounts**
If, for whatever reason, the person forced to form and pay the bill fails to do so, the fiscal control body shall order the formation of the same by officials or employees of the appropriate administrative unit, subject to the penalties provided in this Act.
When the formation of the account is made by officers or employees other than the person obligated to surrender it due to the death of the latter, their heirs and the guarantors or their heirs are entitled to intervene therein.