BUDGET FOR HAITIAN ELECTIONS SWELLS AFTER DELAYS

UNCLAS PORT AU PRINCE 002959

SIPDIS

SENSITIVE

STATE FOR WHA/CAR
DRL
S/CRS
SOUTHCOM ALSO FOR POLAD
STATE PASS AID FOR LAC/CAR
INR/IAA (BEN-YEHUDA)
TREASURY FOR MAUREEN WAFER

E.O. 12958: N/A
TAGS: PGOV PREL KDEM HA
SUBJECT: BUDGET FOR HAITIAN ELECTIONS SWELLS AFTER DELAYS

REF: PAP 2941


1. (SBU) MINUSTAH and the OAS are preparing, but have not
finished, an updated elections budget that accounts for the
new electoral calendar (reftel). The draft budget, which
includes input from both the OAS and MINUSTAH totals roughly
USD 74 million. It would make MINUSTAH,s overall share of
the budget just under USD 60 million and the OAS' share
roughly USD 14 million. CEP Director Jacques Bernard told
Poloff he thought the 74 million figure was on the "high
end." Based on Bernard's conversations with MINUSTAH, he
estimated that recent delays would add at least USD 10
million to the elections budget. However, he said previous
MINUSTAH budgets lacked detail and were thus difficult to
assess.


2. (SBU) Additional elections costs and unmet donor pledges
will create a cash flow problem after the January 8 first
round. Because the EU has not disbursed Euro 8 million of
its pledged contribution, the UN has only received roughly
USD 46 million of the 56.6 million pledged. (Note: An EU
officer said comments by the EU chairman that EU aid would be
cut off as a result of recent delays was an empty threat.
Such a decision would have to be taken by all 25 EU members,
and given strong support from some members, notably France,
he felt it unlikely that the EU would make any move to cut
off funding. He expected 95 percent of the Euro 8 million to
be disbursed during the week of December 5. End Note)
Nonetheless, according to MINUSTAH elections chief Gerard
LeChevallier, the UN has enough money to take the process
through to the first round, but will need additional funds
shortly thereafter.


3. (SBU) Comment: Bernard's estimate that the budget overrun
will be at least 10 million reflects estimates of the growing
deficit in the past weeks. However, the actual deficit
remains unclear; the OAS and MINUSTAH have been unable to
produce a detailed, itemized budget, even at CEP DG Bernard's
request. Instead they continually debate and blame one
another for overruns and delays. The Core Group should
consider that UN head quarters audit MINUSTAH's elections
budget in order to produce a clearer picture of the budget
needs.
KERST