FOLLOW-UP TO EVIAN SUMMIT ANTI-

UNCLAS SECTION 01 OF 02 ACCRA 000056

SIPDIS

AIDAC

WASHINGTON FOR U/S LARSON, E SPC. ASST. ANNE PENCE
(647-9546),EB/IFD/OIA D/DIR MARTHA KELLY OR TIM HAUSER
(736-4365/4246, AND INL/C DAVID LUNA OR JOHN BRANDOLINO
(776-4910/4556)

E.O. 12958: N/A
TAGS: EAID KCOR PGOV ECON EINV EPET ETRD GH
SUBJECT: FOLLOW-UP TO EVIAN SUMMIT ANTI-
CORRUPTION/TRANSPARENCY DECLARATION: IDENTIFICATION OF
PILOT COUNTRIES

REF: SECSTATE 2003 345287


1. Summary. Anti-corruption and transparency are
critical issues in Ghana. While the G-8 program could
add value to on-going anti-corruption and transparency
initiatives in Ghana, and while we think Ghana could
ultimately participate successfully, the timing is not
good for including Ghana as one of the pilot countries.
2004 is an election year and the Government of Ghana
(GoG) is heavily engaged in advancing the Ghana Poverty
Reduction Strategy (GPRS) and developing and
implementing its various sector strategies. It is
unlikely the GoG could make the necessary commitments
to ensure it would serve as a successful pilot partner.
We are eager to learn more about the program and would
encourage Ghana to participate in the program once it
gets underway. We have consulted with our in-country UK
counterparts, including the Deputy High Commissioner
and DFID. They support this conclusion. End Summary.


2. Post would probably have no difficulties in getting
the GoG to sign onto such a pilot program. However,
implementing such an initiative will face a number of
hurdles. For one, it may be difficult to have the GoG
assign personnel with the time and skills to engage on
this to ensure that all of the GoG's responsibilities
are implemented. Moreover, there will likely be
internal resistance within the civil service to
following through on such an initiative. In the case of
the Extractive Industries Transparency Initiative
(EITI),DFID indicates that the GoG has made a number
of promises, but the government institutions are
lagging behind in the implementation. Furthermore, DFID
fears that if Ghana is selected as a pilot country that
the efforts under the G-8 anti-corruption and
transparency initiative would duplicate efforts already
underway in their current EITI project in Ghana.


3. Since 2004 is an election year, the GoG would be
more than happy to showcase any transparency efforts
that put them in a positive light but will be less than
eager to showcase efforts that reflect badly on them.
The GOG would likely put a positive spin on its
participation and use the efforts to win political
favor. The challenge would be to ensure that there is
real substance behind any actions the GoG is pushed to
take.


4. Current and ongoing anti-corruption and transparency
activities include the following:
World Bank and DFID program in Public Financial
Management;
Country Financial and Accountability Assessment in
2001;
World Bank (supported by DFID) program on
procurement reform;
World Bank governance and anti-corruption program;
US Treasury Tax Administration Program;
USAID funded wide area network and case management
system for the Commission on Human Rights and Justice
(CHRAJ);
USAID program to increase capacity of civil
society organizations to work with local government to
improve government accountability and responsiveness to
citizens, through public hearings on programs, budgets,
corruption, and tendering;
DFID governance and anti-corruption program;
DFID EITI project;
DFID public financial management and reform
program;
DFID civil service reform program;
GTZ good governance program;
Netherlands training for national audit offices;
and
Netherlands anti-corruption capacity building for
municipalities.

cipalities.


5. It is critical that any anti-corruption initiative
in Ghana add value to existing initiatives, including
World Bank support to the implementation of the Public
Procurement Act and the Country Procurement Assessment
Review (CPAR) Action Plan and the Ministry of Finance
and Economic Planning's (MoFEP) Short Term Action Plan.
Furthermore, there are a range of issues that need to
be addressed to improve the overall anti-corruption and
transparency environment. These include the following:
Developing equitable and meaningful wage policies;
Passing comprehensive anti corruption legislation
- encompassing a reasonably comprehensive and
unambiguous definition of bribery and corruption,
credible access to information and whistle-blower
encouragement and protection laws, and clear guidelines
on conflict of interest;
Strengthening the independence and capacity of
constitutional and statutory oversight bodies;
Promulgating and enforcing credible asset
set
declaration regulations, especially ones that conform
to international best practices (such as easy
verifiability and easy monitoring); and
Initiating public service reforms with a view to
redressing the culture of secrecy, promulgating a
credible wage policy.


6. While the G-8 initiative appears to be a very
interesting program, the timing is unfavorable for
including Ghana as a pilot country. However, we are
anxious to know more about the program and would very
much like Ghana to participate once it gets underway.
If Ghana is selected for either the pilot or the
mainstream program, it will be critical to have
sufficient funds to provide for technical assistance,
training and management oversight. USAID/Ghana has no
resources to draw upon for such a program. Additional
funds will be required to provide the appropriate
program inputs and oversight.

YATES