Identifier
Created
Classification
Origin
03ABUDHABI552
2003-02-02 13:33:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:
THE MONEY PIT: FISCAL IRREGULARITIES IN THE UAE
how-tonull Diana T Fritz 06/05/2007 10:40:34 AM From DB/Inbox: Search Results Cable Text: CONFIDENTIAL SIPDIS TELEGRAM February 02, 2003 To: No Action Addressee Action: Unknown From: AMEMBASSY ABU DHABI (ABU DHABI 552 - ROUTINE) TAGS: ECON, EFIN, PGOV Captions: None Subject: THE MONEY PIT: FISCAL IRREGULARITIES IN THE UAE Ref: None _________________________________________________________________ C O N F I D E N T I A L ABU DHABI 00552 SIPDIS CXABU: ACTION: ECON INFO: AMB POL DCM P/M Laser1: INFO: FCS DISSEMINATION: ECON CHARGE: PROG APPROVED: CDA: TWILLIAMS DRAFTED: ECON: CCRUMPLER CLEARED: NONE VZCZCADI480 RR RUEHC RUEHZM RUEAWJA RUCPDOC RUEATRS RHEHNSC RUEAIIA RHEFDIA DE RUEHAD #0552 0331333 ZNY CCCCC ZZH R 021333Z FEB 03 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 8207 INFO RUEHZM/GCC COLLECTIVE RUEAWJA/DOJ WASHDC RUCPDOC/USDOC WASHDC RUEATRS/TREASURY DEPT WASHDC RHEHNSC/NSC WASHDC RUEAIIA/CIA WASHDC RHEFDIA/DIA WASHDC
C O N F I D E N T I A L ABU DHABI 000552
SIPDIS
STATE FOR EB, NEA/ARP AND NEA/RA
DOJ FOR T. GREENBERG
COMMERCE PASS TO C. LOUSTAUNAU
TREASURY PASS FEDERAL RESERVE
NSC FOR J. MYERS
E.O. 12958: DECL: 02/02/2013
TAGS: ECON EFIN PGOV TC
SUBJECT: THE MONEY PIT: FISCAL IRREGULARITIES IN THE UAE
C O N F I D E N T I A L ABU DHABI 000552
SIPDIS
STATE FOR EB, NEA/ARP AND NEA/RA
DOJ FOR T. GREENBERG
COMMERCE PASS TO C. LOUSTAUNAU
TREASURY PASS FEDERAL RESERVE
NSC FOR J. MYERS
E.O. 12958: DECL: 02/02/2013
TAGS: ECON EFIN PGOV TC
SUBJECT: THE MONEY PIT: FISCAL IRREGULARITIES IN THE UAE
1. (U) Classified by Charge D'Affaires Tom Williams for reasons 1.5
(b) and (d).
2. (U) The UAE federal government's top financial control body -- the
Abu Dhabi
Audit Department -- announced publicly on February 1 that the federal
coffers had
received only USD $107,000 of the USD $9 million in fees expected to be
collected by
the federal ministries and other official departments in 2002. The
Audit Department
noted that the Interior and Economy Ministries, in particular, failed
to collect and
transfer significant revenues from fees of government services
rendered.
3. (U) The Audit Department cited the Ministry of Economy for failing
to collect
fines from foreign companies that delayed the registration or renewal
of their
commercial licenses in violation of federal law. The Ministry of
Interior also did
not collect fines paid for traffic violations from the individual
Traffic and Civil
Defense Departments in the northern emirates. For its part, the
Ministry of Health
increased its fee schedule for services at some health centers in
mid-2002, but did
not collect the amended fees from patients for the latter half of the
year.
4. (U) In contrast, the Audit Department noted that some departments
of
Naturalization and Residency did collect the appropriate fees in 2002,
but
"accidentally" transferred the funds to local governments instead of
the federal
government.
5. (C) Comment: Although an Audit Department official intimated that
theft and
embezzlement were suspected in some of the cases in the northern
emirates (he noted
that these cases had been referred to the Attorney-General) the fiscal
irregularities
probably owe more to the confederation's institutional inability to
systematically
collect and transfer revenue to the feds, rather than malfeasance. It
is unusual for
the government to publicize such derogatory information; we can only
surmise that Abu
Dhabi, which foots the bill for the increasingly large federal budget,
would like to
see federal institutions do a better job -- however small and symbolic
-- of helping
pay their way. End comment.
Williams
SIPDIS
STATE FOR EB, NEA/ARP AND NEA/RA
DOJ FOR T. GREENBERG
COMMERCE PASS TO C. LOUSTAUNAU
TREASURY PASS FEDERAL RESERVE
NSC FOR J. MYERS
E.O. 12958: DECL: 02/02/2013
TAGS: ECON EFIN PGOV TC
SUBJECT: THE MONEY PIT: FISCAL IRREGULARITIES IN THE UAE
1. (U) Classified by Charge D'Affaires Tom Williams for reasons 1.5
(b) and (d).
2. (U) The UAE federal government's top financial control body -- the
Abu Dhabi
Audit Department -- announced publicly on February 1 that the federal
coffers had
received only USD $107,000 of the USD $9 million in fees expected to be
collected by
the federal ministries and other official departments in 2002. The
Audit Department
noted that the Interior and Economy Ministries, in particular, failed
to collect and
transfer significant revenues from fees of government services
rendered.
3. (U) The Audit Department cited the Ministry of Economy for failing
to collect
fines from foreign companies that delayed the registration or renewal
of their
commercial licenses in violation of federal law. The Ministry of
Interior also did
not collect fines paid for traffic violations from the individual
Traffic and Civil
Defense Departments in the northern emirates. For its part, the
Ministry of Health
increased its fee schedule for services at some health centers in
mid-2002, but did
not collect the amended fees from patients for the latter half of the
year.
4. (U) In contrast, the Audit Department noted that some departments
of
Naturalization and Residency did collect the appropriate fees in 2002,
but
"accidentally" transferred the funds to local governments instead of
the federal
government.
5. (C) Comment: Although an Audit Department official intimated that
theft and
embezzlement were suspected in some of the cases in the northern
emirates (he noted
that these cases had been referred to the Attorney-General) the fiscal
irregularities
probably owe more to the confederation's institutional inability to
systematically
collect and transfer revenue to the feds, rather than malfeasance. It
is unusual for
the government to publicize such derogatory information; we can only
surmise that Abu
Dhabi, which foots the bill for the increasingly large federal budget,
would like to
see federal institutions do a better job -- however small and symbolic
-- of helping
pay their way. End comment.
Williams