This speech was given by the Comptroller General before an International Conference on Managing Tsunami Relief Funds in Jakarta, Indonesia on April 25, 2005. The reason we're here today is because of one of the worst natural disasters in modern times. The earthquake and tsunami that struck on December 26 affected not just a single city or a single province but an entire region, from Indonesia to India and from Sri Lanka to Somalia. So far, nearly 300,000 people are either dead or missing, and we'll probably never know the final number. Another million or more people are believed to be homeless. To put things into perspective, the deadly tidal waves produced by the eruption of Krakatoa in 1883 are estimated to have killed fewer than 40,000 people. The real issue for this conference is where do we go from here. In my view, the ongoing tsunami relief efforts present national governments, relief organizations, and the international community--including supreme audit institutions--with both challenges and opportunities. Clearly, the main challenges are to deliver the relief aid to its intended recipients, to reconstruct roads, bridges, and other life-sustaining infrastructure, and to assure donors that their money has been well spent. The U.S. government has provided help both in the form of cash pledges and the rapid deployments of U.S. military forces and equipment immediately after the disaster. During a six-week stint, the U.S. Navy hospital ship Mercy provided medical assistance to thousands of sick and injured people. At about the same time, the carrier U.S.S. Abraham Lincoln, also known as the "grey angel," was sent to the northwestern coast of Sumatra to deliver food, water, and other aid to some of the worst stricken areas. Helicopter crews flew more than 1,700 missions to deliver relief up and down the island. Understandably, much of the tsunami relief so far has targeted the most urgent problems. Right now, aid workers are focused on assessing and repairing damaged buildings and infrastructure, addressing shortages of basic necessities, and combating illness and disease. But the tsunami also produced a number of long-term challenges that must be addressed. For example, some of the heaviest damage occurred at coastal fishing villages. Their residents are among the poorest in the region. With their boats and other equipment destroyed, many of them have no way to earn a living. We're going to have to help get these folks get back on their feet so that they can support themselves and their families. After all, idle hands and minds can also be a source of discontent and instability. We're also going to need to address the tsunami's enormous environmental impact. The surge of saltwater damaged fragile ecosystems, poisoned wells and fields, and destroyed sewage treatment plants. Reversing this damage will take time and money. Partnering for progress across institutional and geographic lines will be essential to better leverage resources that, while significant, are not unlimited. New alliances will be essential to achieving lasting and positive results.

The challenge before us is how best to oversee the billions of dollars in relief money and ensure that it provides the maximum return on investment. As I just mentioned, partnering will be essential, but it'll take partnering based on three key principles. These principles are incentives, transparency, and accountability. We'll have a chance to talk about these principles in greater detail in the break-out sessions, but a few related thoughts are appropriate at this time. The first key principle I'm going to talk about is the need for incentives. Whenever large amounts of money are at stake, it's essential to have mechanisms in place to ensure that public officials follow prescribed procedures and spend funds appropriately. In the case of the continuing tsunami relief and reconstruction efforts, I would also strongly encourage the use of ongoing risk assessments to monitor and test various activities. Real-time financial and performance auditing has the advantage of spotting mistakes as they occur. This helps to correct mistakes before they get out of hand and prevents similar mistakes from happening in the future. Government agencies and donor organizations may want to arrange for technical expertise to maintain quality control over materials and construction techniques. Such vigilance can make a difference. The second key principle is transparency. Whether we're talking about public aid money or private donations, it's essential to have periodic public reporting on the receipt, obligation, and spending of funds. The Internet is a particularly powerful tool to enhance transparency. These simple measures can enhance oversight of resources, prevent duplication of effort, and help to target funds where they're needed most. Given the large amounts of aid money that have been pledged, the nations affected by the tsunami may want to consider a similar approach. The third key principle is accountability. It's essential to carry out both financial and performance audits of disaster assistance efforts. In the case of tsunami relief funds, oversight by both national and local accounting firms can be helpful in providing access, institutional knowledge, and insights into local languages and business practices. These accounting firms can also be called on to provide additional financial and management oversight of high-risk reconstruction efforts. Beyond the three key principles of incentives, transparency, and accountability, I think the tsunami relief efforts could also benefit from one of the central lessons of the reconstruction effort in Iraq. That lesson is that it's crucial to identify your security needs and establish a stable and secure environment for reconstruction efforts. When it comes to the tsunami relief and reconstruction effort, it's crucial that we get it right. Supreme audit institutions from both donor and recipient countries have an important role to play in ensuring that we do so.