Itaipu dam accounts to undergo external auditing

Brazil and Paraguay will submit the accounts of  hydroelectric dam Itaipu Binacional to external auditing in order to bring more transparency to the company. The decision was made official on August 22 and announced today (Aug 28) by the Foreign Ministries of Brazil and Paraguay.

The details on how the auditing should be carried out—which may have the work of auditors from other countries
—will be settled through diplomatic agreements.

“With a view to improving management and bringing about transparency, Itaipu’s board of directors believes it is vital to have an external inspection mechanism,” the document reads.

The move is believed to help the two countries scrutinize its bookkeeping, budgeting, and property, as well as compliance with the law.

Agreement

In a note, the two ministries reported that “the two directors-general at Itaipu—General Joaquim Silva and Luna (Brazil), and Ernst Bergen (Paraguay) agreed that the firm should be inspected externally.”

The ministries explained that Itaipu Binacional is special as it is governed by international public law and a treaty signed by Brazil and Paraguay, with equal power of decision making on both sides.

“The management of the firm’s resources and territory is jointly and equally conducted by Brazilians and Paraguayans, who share equal parts and ideals,” the document says.