INTER-INSTITUTIONAL SEMINAR UNREALISTIC ON

UNCLAS SECTION 01 OF 02 KINSHASA 000205

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: PGOV PREL PINS KDEM EFIN ECON CG
SUBJECT: INTER-INSTITUTIONAL SEMINAR UNREALISTIC ON
ELECTIONS FINANCE

REF: KINSHASA 183


1. (U) Summary: The Elections Finance Committee of the Feb
2-4 Inter-Institutional Seminar highlighted the $100 million
gap in funding for elections in the DRC. While committee
discussion tended to focus on increased funding from the
international community, plenary debate concentrated on
general criticism of the government for thus far coming up
with a paltry $2.1 million contribution to a process
estimated to cost $285 million. Final recommendations urge
the GDRC to up its contributions to about $28 million, or 10
percent of the total. At the end of the seminar, Electoral
Commission President Malu Malu told the Ambassador that he
understands the government has already upped its planned
contribution to $15 million in response to the criticism, and
pressure will be maintained to do more. End summary.

Looking for Funding Everywhere
--------------


2. (U) The Elections Finance Committee of the Feb 2-4
Inter-Institutional Seminar highlighted the $100 million gap
in funding for elections in the DRC. Not one minister was
present at the Feb 3 meeting, though, the Minister of Budget
did address the opening plenary on Feb 2. Little to no
emphasis was placed on utilization of funds already released
by donors. Focus was squarely placed on increasing funding
from the international community to fill the financing gap,
despite general acrimony over the GDRC's embarrassing $2.1
million contribution to an elections process estimated to
cost $285 million.


3. (SBU) EU Ambassador Carlo di Filippi forcefully rejected
the delegates' attempts to blame donors for not providing
more funds. He cited the 40 million euros the EU has already
released and also told the delegates that actions should be
taken with the money already available instead of waiting for
additional funding to begin programs.

Recommendations
--------------


4. (U) The Committee initially developed several
recommendations, none of which dealt with elections planning
or utilization of money already disbursed. They included
looking for new sources of finance (i.e. from the
international community),cutting spending in the GDRC (e.g.
for official missions abroad),accelerating the delivery of
funds promised by donors, and accelerating the disbursement
of funds from the GDRC budget to the Independent Electoral
Commission (CEI). A recommendation was also made during the
course of the day that top officials in the GDRC donate 10
percent of their salaries to election financing.


5. (U) The recommendations as presented to the plenary
session on Feb 4 included the following:

--The GDRC and the Parliament should make elections a budget
priority for 2005 and should increase its contributions to 10
percent (or $28 million) of the total elections cost.

--The GDRC needs to decrease government expenses in order to
increase its contribution to elections. Savings of
approximately $9 million and $5.5 million can be made on
foreign missions and institutional spending, including the
Presidency's budget, respectively.

--The Ministries of Finance, Budget and Public Works should
make available and/or rehabilitate buildings throughout the
country country for use by the Independent Electoral
Commission (CEI).

--The GDRC should seek new sources of income, such as taxes
on non-essential products like beer and cigarettes, as well
as requesting voluntary contributions by the population.

--The GDRC needs to accelerate budget mechanisms to give CEI
access to "sovereign" (national) fund.

--The CEI should try to revaluate and rationalize expected
electoral expenditures to reduce expenditures.

Comment
--------------


6. (SBU) While the Committee's discussion seemed to
disproportionately focus on the international community
funding, plenary discussion in the opening and final phases
of the Seminar featured heavy criticism of the GDRC's
inadequate funding support to-date. Indeed, the Committee
recommendation to target a roughly $28 million contribution
made it onto the final Seminar proposals, along with various
other suggestions for funding schemes through assessments on
senior officials, cutbacks in other parts of the GDRC budget,
and a system to handle voluntary contributions. Malu Malu's
report that the government is already working to increase its
funding reflects a beneficial effect already of this
pressure. The real import of the Committee's discussion and
the Seminar generally, was to begin to involve
parliamentarians, and by extension the press and public, into
work addressing specific questions regarding the nuts and
bolts of election preparations. Public dialogue regarding
elections from the time of the Sun City accord until now has
progressed little beyond platitudes, and the Seminar marks a
conscious effort of parliamentary leaders and the Electoral
Commission to draw in political leaders to look at the
specifics of what already has been done, and of more
importance the substantial work that still remains, and the
financial costs associatied with it. End comment.


7. (U) Bujumbura minimize considered.
MEECE