Identifier
Created
Classification
Origin
05DHAKA603
2005-02-09 10:07:00
UNCLASSIFIED
Embassy Dhaka
Cable title:  

AMBASSADOR AND USAID DIRECTOR MEET WITH FINANCE

Tags:  BG PREL PGOV EAID 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS DHAKA 000603 

SIPDIS

E.O. 12958: N/A
TAGS: BG PREL PGOV EAID
SUBJECT: AMBASSADOR AND USAID DIRECTOR MEET WITH FINANCE
MINISTER ON MILLENNIUM CHALLENGE ACCOUNT

UNCLAS DHAKA 000603

SIPDIS

E.O. 12958: N/A
TAGS: BG PREL PGOV EAID
SUBJECT: AMBASSADOR AND USAID DIRECTOR MEET WITH FINANCE
MINISTER ON MILLENNIUM CHALLENGE ACCOUNT


1. SUMMARY: On February 6, Ambassador, USAID Director, and
PA officer (note taker) met with Finance Minister Saifur
Rahman to discuss the Millennium Challenge Account (MCA).
The USAID Director presented a list of benchmarks, developed
by the Mission, directed at assessing Bangladesh's
commitment to ending corruption. These included an
effective anti-corruption commission, improvement in
transparency of government, reform of oversight and policy
institutions, and adoption and implementation of
international norms.


2. The FM complained that some "thoroughly corrupt"
countries did receive MCA funds; AMB acknowledged this but
stressed that they had made visible and strong efforts to
combat corruption in their countries. The USAID Director
added that USAID AdministratorDirector-General Natscios, as
a Board member of the Millennium Challenge Corporation
(MCC),does want to supportsupported Bangladesh's bid but
corruption is standing in the way. The USAID Director noted
that of 16 criteria for MCA eligibility, Bangladesh is
"solid" on 11, but needs to show sincere, strong, and
measurable efforts on three or four other criteria.


3. He noted that despite common perception, Transparency
International's corruption perception index is not the
primary basis for the decision, saying that MCA MCC gauges
efforts and looks at numerous other data sources and reviews
countries' meaningful progress in fighting corruption. He
also pointed out that the Anti-Corruption Commission is not
a solution to the problem of corruption. For the government
to demonstrate its support for anti-corruption efforts, it
must avoid the creation of committees and commissions and
take realistic, progressive steps.


4. The USAID director noted that of 16 criteria for MCA,
Bangladesh is "solid" on 11, but needs to show sincere,
strong, and measurable efforts on three or four other
criteria.


4. The FM acknowledged that the Anti-Corruption Commission
is not working the way it should and that it is crippled by
internal arguments to the extent that it cannot work
coherently. The existing staff is problematic, the chair is
unwilling to agree to take steps to correct the infighting,
and he feels that moving them to a new commission would be
putting "old wine into new bottles."


5. While many points from the list were discussed, some key
reactions from the FM are:
The requirement to disclose publicly the accounts of
development projects seemed to be the most unpalatable.
The FM discussed at length his perception that a Human
Rights Commission (HRC) was unnecessary since human rights
are guaranteed in the preamble to the Constitution,
,
"jealously guarded" by the Court, and too many commissions
can "paralyze progress." He promised to look into
establishing an HRC and said he would not "write it off"
although he believes it is not necessary.
He prefers to establish an Office of the Ombudsman
before working toward HRC.
The FM noted that he has discussed the Freedom of
Information Act (FOIA) with the Law Minister and has studied
a copy of India's FOIA.
He described the Official Secrets Act as "rubbish" and
said that he would like to see it removed.


6. The Finance Secretary was proposed as a point of contact
for the USAID Director to use in MCA discussions. The FM
reiterated his unhappiness with MCA funding. AMB and USAID
Director cited President Bush's remark that corruption is a
big obstacle in developing countries.

THOMAS