Review of the Termination of the Millennium Challenge Corporation Compact with Madagascar

We recommend that the Millennium Challenge Corporation's Vice President for Compact Implementation determine the status of and collect the remaining funds in MCA-Madagascar's bank account.

We recommend that the Millennium Challenge Corporation's Vice President for Compact Implementation include in the Guidelines for Program Closure of Millennium Challenge Compacts procedures to address the advances, accrued interests, and security deposits in the MCAs' accounts after compact closeout.

We recommend that the Millennium Challenge Corporation's Vice President for Compact Implementation prepare guidance that implements a process to identify and collect value-added tax payments improperly made to compact countries.

Recommendation #4 -WITHDRAWN
Recommendation No.4: We recommend that the Millennium Challenge Corporation's Vice President for Compact Implementation collect the $3.8 million
value-added tax owed by the Government of Madagascar.

We recommend that the Millennium Challenge Corporation's Vice President ofthe Compact Implementation Department issue guidance clarifying how compacts address value-added tax as it relates to the sale ofassets during early terminations.

We recommend that the Millennium Challenge Corporation's Vice President for Compact {sic} include specific requirements on removing sensitive data in the next iteration ofthe Program Closure Guidelines.

We recommend that the Millennium Challenge Corporation's Vice President for Compact Implementation revise the nongovernmental Organizations Selection Form to include a requirement that each Millennium Challenge Account request legal
documentation when considering nongovernmental organizations as recipients of compact property for future project closeouts.

We recommend that the Millennium Challenge Corporation's Vice President for Compact Implementation, when considering compact termination in the future, establish procedures to require that each Millennium Challenge Account transfer assets only to nongovernmental organizations that have the funding and human capital capacity to continue the compact objectives.