NEW MINISTER OF HEALTH: LET'S COOPERATE TO IMPROVE

C O N F I D E N T I A L SECTION 01 OF 02 BAGHDAD 001978 SIPDIS SIPDIS E.O. 12958: DECL: 06/11/2016 TAGS: EAID ECON PGOV IZ SUBJECT: NEW MINISTER OF HEALTH: LET'S COOPERATE TO IMPROVE HEALTHCARE AND THE MINISTRY Classified By: Ambassador Zalmay Khalilzad for reasons 1.4 (b) and (d). ¶1. This cable contains an action request for Embassy Doha. Please see paragraphs 6 and 7. ¶2. (C) SUMMARY: Ambassador and Embassy staff met on May 27 with Dr. Ali Al-Shamari, the new Minister of Health. Minster Al-Shamari expressed a desire to work closely with Embassy officials to finish construction on much needed health infrastructure and to provide up-to-date training for Iraqi health professionals. The Minister also stated his intention to work with Embassy officials to build his ministry's capabilities and reform inefficient and corrupt practices, including the operations of Kimadia, a state-owned pharmaceutical enterprise operated by the Ministry of Health. Based on Minister Al-Shamari's previous experience and his willingness to cooperate, we are hopeful of a positive relationship, although we are wary of his Sadrist affiliation. END SUMMARY. ¶3. (C) Ambassador, EconCouns, Health Attache, and IRMO/Health and Human Services representative met on May 27 with Dr. Ali Al-Shamari, the new Minister of Health. Minister Al-Shamari is a Shi'a with Sadrist affiliation. He is 44 years old and graduated from Kufa Medical College in 1987, after which he trained in internal medicine for approximately nine years at Khadamiya Hospital in Baghdad. Some of Minister Al-Shamari's instructors have informed us that he was an outstanding student and a cooperative and reasonable individual. After finishing his training in Baghdad, Minister Al-Shamari resided for an unknown period of time in Syria. He most recently practiced medicine at the Qatari Ministry of Health in Doha, where his family still lives (strictly protect). (COMMENT: It is interesting that a Sadrist politician would have his family living in a Wahabi country, albeit a broad-minded one. END COMMENT.) -------------- Building Better Healthcare -------------- ¶4. (C) Al-Shamari stated that Iraq's health situation is "chaos" and that "conditions are terrible." He told us that completion of the planned 142 new healthcare centers is vital to improving Iraq's healthcare capabilities, and he expressed concerns about the status of the incomplete healthcare centers. (NOTE: 122 centers remain incomplete. END NOTE.) Ambassador explained to the Minister that we have terminated the contract to build the centers due to the contractor's (Parsons) poor performance, but that we look forward to cooperating with the Minister to ensure the speedy completion of the remaining construction. Minister Al-Shamari pledged his cooperation and agreed with the Ambassador that a team should be formed immediately to create a plan to resolve pending construction problems within the next week. The Minister informed us that Deputy Minister Amar Al-Saffar would continue in his position and could be instrumental in developing a sound plan on this issue. (COMMENT: DM Al-Saffar's involvement may not be conducive to results. He has told us that Ambassador "negotiates with terrorists" and "should leave the country." He has also been adamant that U.S. reconstruction money "is not a gift" but "is owed to Iraq." END COMMENT.) ¶5. (C) Ambassador also informed Al-Shamari that we are planning to stop construction of the $70 million Basrah Maternity and Children's Center unless security at the construction site can be stabilized. The project is 25 percent complete at this point, and security costs are absorbing 20 percent of its budget. Al-Shamari responded that he believes the Basrah center is an important project for improving Iraq's healthcare capabilities and that he wants to cooperate to ensure its completion. ¶6. (C) The Minister expressed a desire to work with us to get better education and training for Iraqi doctors and healthcare professionals. Health Attache informed the Minister that we have approximately $7 million to send Iraqi medical professionals to the United States for training and experience in modern techniques and medicines. The Minister expressed his appreciation for this assistance, discussing his experience in Doha and the value of outside training for Iraqi doctors. He also asked Ambassador to assist in arranging a visit between Minister Al-Shamari and the Qatar National Health Authority to discuss health issues. ¶7. (C) ACTION REQUEST: Embassy Baghdad requests Embassy Doha assistance in arranging a visit between the Qatar National Health Authority and Minister Al-Shamari. Please contact Ken Meyer, Economic Officer, to assist with arrangements; email: BAGHDAD 00001978 002 OF 002 MeyerKL(at)state.sgov.gov, phone: 914-822-2786 (U.S. number). END ACTION REQUEST. -------------- Building a Better Ministry -------------- ¶8. (C) Al-Shamari said he wants to improve Ministry operations by placing more technical experts at key Ministry positions. The Ministry would benefit, he added, from having a more ethnically and religiously diverse workforce. This would be a welcome difference between Al-Shamari and the previous Minister, who has been criticized (both by Iraqis and foreign observers) for hiring people for key Ministry positions based on their political affiliation. Ambassador explained our National Capacity Building initiative and expressed our willingness to assist the Minister by providing training and resources for technical experts within the MoH. ¶9. (C) Minister Al-Shamari also told us that he intends to reform Kimadia, an MoH-operated state-owned enterprise (SOE) that is responsible for providing the bulk of pharmaceuticals to Iraqi hospitals. He shares with former Health Minister Mutalib and Inspector General Adel the belief that Kimadia is corrupt. (NOTE: Kimadia recently barred pharmaceutical company Eli Lilly from participating in a drug tender, reportedly because Eli Lilly does business in Israel. The Coalition Provisional Authority had discussed plans to privatize Kimadia, although the process never took root. END NOTE.) ¶10. (C) The Minister told us that he believes that healthcare subsidies in Iraq are too high and burden the federal budget. He said he wants to change the subsidy system, charging Iraqis a minimal co-payment in order to free up government funds for more productive uses. -------------- Encouraging Signs -------------- ¶11. (C) COMMENT: Based on Minister Al-Shamari's professional experience and his stated desire to cooperate openly with Embassy officials, we are hopeful of developing a positive relationship with him. We are especially encouraged by his belief that Kimadia is a serious problem within the MoH and by his desire to reform it. We are also encouraged by his stated view that healthcare subsidies are hindering economic development. However, it remains to be seen whether his Sadrist affiliation will negatively affect his initial willingness to cooperate and his desire to staff the MoH with competent technocrats. END COMMENT. KHALILZAD