COLOMBIAN MILITARY SPENDING MORE TRANSPARENT THAN

UNCLAS SECTION 01 OF 02 BOGOTA 007832 SIPDIS E.O. 12958: N/A TAGS: MOPS ECON KCRM CO SUBJECT: COLOMBIAN MILITARY SPENDING MORE TRANSPARENT THAN EVER, BUT FIGHT AGAINST GRAFT MUST CONTINUE REF: A. BOGOTA 011331 ¶B. BOGOTA 6598 -------------- SUMMARY -------------- ¶1. (U) Vice-Minister of Defense Eastman praised the results of the Security and Democracy Foundation (FSD) and the Latin American Security Defense Network (RESDAL) study of transparency in Colombia's defense budgeting and spending released on 9 August, while acknowledging that more needs to be done. The study concluded that a series of internal reforms, such as restructuring the defense sector to better address the internal armed conflict, and the appointment of civilians to high level defense ministry positions, have made defense spending more efficient and transparent. Surprising results of the study include that Colombia has fewer soldiers per capita than Chile or Spain, and that Colombia's spending per soldier is only average for Latin America. The study also offers several recommendations to reduce corruption and improve transparency, such as the creation of a legal framework for the defense sector and the centralization of purchases. End Summary. -------------- MAIN POINTS FROM THE STUDY -------------- ¶2. (U) On August 9, The FSD, an independent, well-respected security think tank, and RESDAL, a regional security network, presented findings on transparency in Colombia's defense budgeting spending over the past decade. The study indicated that a series of important recent security and defense innovations at the national level have garnered significant benefits. The Ministry of Defense (MOD) has restructured the defense sector to better address Colombia's armed conflict; appointed civilians to high level defense positions; created the Presidential Department for Defense and Security to coordinate and supervise policy implementation; formed counterinsurgent brigades; developed a cadre of professional soldiers; and established the Justice and Security Unit in the Department for National Planning, which has helped fortify the participation of civilians in the formulation of defense budgets. ¶3. (U) Despite the GOC's efforts to increase its public security budget, deficiencies still exist, according to the study. Troop levels are insufficient even for a country at peace. Colombia has fewer soldiers per capita than Chile and Spain; Colombia's spending per soldier is average for Latin America, despite its active conflict; and military spending, including pension costs, as a percentage of GDP reaches only 3 percent (most recent Embassy reporting indicated that the Colombian Congress approved a 7 percent increase this year in military spending over 2004). -------------- STUDY RECOMMENDATIONS -------------- ¶5. (U) The study proposed a series of recommendations to further the MOD's reform process: - Legal Framework: The most important reform, according to the study, would be to create a legal framework for the defense sector that clearly defines the responsibilities of each department. - Centralize Spending: To reduce corruption, measures such as centralization of purchases and the reorganization of logistics will help improve transparency. - Streamline Spending: The fusion of the Armed Forces' (Army, Navy, and Air Force) budgets would contribute to the overall simplification of management and execution. Moreover, the National Police, which falls under the MOD but operates as an independent ministry, should later be included in an overall defense budget. - Training: Train the Ministry of Defense Executive Unit's administrative and battalion personnel responsible for the daily budgeting for the defense sector to reduce costs and increase efficiency. - Information Sharing: In the medium term, every group should integrate with the Integrated System of Financial Information (SIIF),a computer program designed to help integrate information sharing and public finances. The SIIF could assist in facilitating internal control and help conduct necessary auditing. - Reorganization: The Ministry of Defense's Internal Control Office should report directly to the Office of the Minister instead of the Vice Minister. - Congressional Leadership: Congress needs to assume greater leadership on topics related to security and defense. The creation of a parliamentary commission that is dedicated exclusively to those topics could help increase participation, elaboration, approval, and budget monitoring. Moreover, by getting Congress more involved, the GOC could better prioritize its Democratic Security policy. -------------- VICE MINISTER OF DEFENSE'S RESPONSE -------------- ¶6. (U) Vice Minister of Defense Jorge Mario Eastman appeared with the think tank presenters and praised the results of the study. He acknowledged the need to continue moving forward with reforms the MOD has developed over the past decade. Eastman argued that increasing public approval of the military and police force (75 percent and 64 percent, respectively) was the result of the progress made in the recent years. Eastman explained that the MOD has been working hard to address corruption and offered the example of the MOD's efforts to modernize its logistics system. He also cited the unprecedented recent discussion in Congress of the purchase of the Brazilian "Super Tucanos" military planes, which he said signals the MOD's commitment to increase transparency in such high level purchases. WOOD