Afghanistan Border Management Initiative - Fueling

UNCLAS SECTION 01 OF 06 KABUL 001975 SIPDIS SIPDIS DEPT FOR ISN/ECC PVANSON, ACHURCH, KCROUCH AND JLCOLLINS; CBP/INA FOR JKELLY; DOE/NNSA FOR RSTUBBLEFIELD; DOC FOR ELOCKWOOD-SHABAT; DOT FOR APARAMESWARAN; SECDEF FOR MHOFFMANN, FLIGHT, AND RVIERKANT; NSC FOR AHARRIMAN AND KAMEND; CUSTOMS FOR US CUSTOMS AND BRODER PROTECTION E.O. 12958: N/A TAGS: PGOV EFIN PREL AF SUBJECT: Afghanistan Border Management Initiative - Fueling the Program KABUL 00001975 001.4 OF 006 This is an Action Request - See paragraph 8. -------------- SUMMARY -------------- ¶1. (SBU) The International Border Management Advisory Team (IBMAT) visited Afghanistan April 9 to 17 and conducted an assessment of overall border management activities in Herat province. The IBMAT team corroborated earlier assessments indicating an overall lack of GoA initiative, poor coordination between GoA border and customs officials and inconsistent border policies and procedures. The Embassy's Afghan Reconstruction Group (ARG) will incorporate the team's recommendations into an international action plan to prod the GoA to aggressively continue border management reform. We will work with the Finance Ministry and donor community to create a border management task force (BMTF) to focus specifically on the border management initiative from an international perspective led from behind by the United States. The proposed staffing for such a BMTF is outlined in paragraph 6. Many of the staff would come from other donors and Coalition (CFC-A) assets. However, a modest increase in Mission oversight is required to keep this effort on track. An estimated USD 9.4 million is needed immediately to fund an adequately resourced BMTF for the next 18 months (USD 4.9 million in 2006, USD 4.5 million in 2007)to manage the program (personnel=USD 6 Million) and implement immediate corrective facility and design actions at four priority Afghan border crossing points. -------------- -------------- IBMAT VISIT TO HERAT PROVINCE - FINDINGS AND FOLLOW-UP -------------- -------------- ¶2. (SBU) The IBMAT team traveled to Herat along with representatives from the ARG, CSTC-A, CFC-A, Bearing Point (USAID),the German Police Program Office (GPPO),Guardia di Finanza of Italy and the Afghan Ministries of Commerce, Interior and Finance. In Herat the IBMAT linked up with local GoA officials, the Finance Ministry's Management Intervention Team (MIT) for customs specific information, the 6th Brigade commander for border police specific information and the Regional Training Center (RTC) commander for RTC capabilities information. The primary task of the IBMAT was to conduct an assessment at Islam Qalah (the major border control point on the Iranian border),Towraghundi (on the Turkmen border) and Herat focusing on best practices, policies and procedures, infrastructure and equipment, customs operations, immigration, trade facilitation, and illegal cross-border trade (counter-narcotics, etc.). ¶3. (SBU) The IBMAT assessment team made the following initial findings regarding border management and customs issues (the team's full report will be issued in Washington): -- disparity and irregular payments of salaries to both the Afghan Border Police (ABP)and customs police, -- 15% literacy rate of police and customs recruits, -- lack of SOPs, regulations, roles and responsibilities for KABUL 00001975 002.4 OF 006 -- lack of first line and middle management structure, -- lack of ethics and integrity training, -- rampant low level corruption at border control points, -- "turf battles" between ministries and no interagency cooperation, -- lack of training in the customs ranks and little or no advanced training in the police ranks, -- archaic immigration law with ad hoc legal decisions, -- lack of infrastructure for proper passport control/customs inspections and processes, -- lack of adequate physical, procedural and personal security mandates, -- insufficient access or proper identification control, -- poor customs facility design or control that allows unauthorized access, passport control avoidance, theft, revenue leakage and outside influence from private businesses and individuals, -- rampant customs irregularities of submission of false documents, under valuation, diversion of collected revenue, -- lack of resource management with little or no accountability, -- lack of inspectional tools, training and oversight, -- improper warehousing, transfer and transportation control of cargo, -- dysfunctional brokerage system favoring trader interference and influence, -- ineffective and inefficient traffic control and customs- controlled space, -- inadequately equipped facilities and workforce, -- poor communications and inadequate automated systems, and -- handwritten records with little or no dissemination. ¶4. (SBU) GoA officials who accompanied the IBMAT team were alarmed by what they saw at the BCPs. Subsequent individual meetings between the ARG Chief of Staff, Deputy Finance Minister Shahrani, Director General of Customs Awad and Ministry of Commerce Senior Advisor Haqiqi led to the following proposals and actions. (NOTE: Deputy Minister of Finance and Customs Farhad was not available for the assessment team visit, a sign that his personal position in the ministry may be in jeopardy. Deputy Minister Shahrani is considered a likely replacement. We expect that several of the proposals will require broader policy dialogue within KABUL 00001975 003.4 OF 006 the GoA, which we will encourage, at the Ambassadorial level if necessary. -- Deputy Finance Minister Shahrani will request a presidential decree naming a single ministry, recommended to be the Finance Ministry, to be the lead ministry for GoA Border Management activities; -- Deputy Finance Minister Shahrani will request a presidential decree closing the minor border crossing points to commercial traffic. (Note: This process has been initiated with the Ministry of Foreign Affairs.); -- Deputy Finance Minister Shahrani will support an increase in budget to fund customs operations and provide incentives (better compensation, rewards for uncovering undervalued cargo, etc.) and continual improvement of border management programs to wean them from donor reliance; -- Col. Ayub, commander of the 6th Brigade of the border police with responsibility for the Herat, Islam Qalah and Towraghundi area, would be given a copy of the MOU between the Ministry of Interior and the Ministry of Finance defining roles and responsibilities of each at the BCPs; -- Col. Ayub, being told that the ABP were not responsible for assuring the performance of customs officials, agreed to limit his operations to tasks identified in the MOU and not interfere with customs officials. (Note: As a subsequent follow-up to this action, Deputy Minister Shahrani met with MoI Minister Muqbal to implement this decision.),and; -- A joint MoI and MoF team will travel to Islam Qalah by 1 May to define and agree on physical areas of responsibility of the customs officials, customs police and ABP. -------------- STAFFING A BORDER MANAGEMENT TASK FORCE -------------- ¶5. (SBU) The Embassy (ARG)-led BMI has insufficient customs and border expertise to successfully critique and support the GoA to implement reform efforts or rapidly assess the best knowledge/skill set needed to provide prompt corrective action to border security and customs operational concerns. We propose an international Border Management Task Force (BMTF) concept be resourced to manage the program over the next 18 months. The task force would be initially managed by the ARG and would report progress to the Department, DOD, affected Afghan ministries and the involved donor community. We would propose to expand the international make-up of the existing BMI efforts by seeking BMTF leadership and participation from the wider donor community. The BMTF would have a goal of placing the entire BMI in GoA control within 18 months. (Comment: To be effective, the BMTF will require a GoA lead agent with the appropriate authority to enforce inter-ministerial cooperation and autonomy to direct necessary changes in GoA activities regarding border management activities. This requirement would be partially accomplished upon signature of the first Presidential Decree mentioned in paragraph 4.) KABUL 00001975 004.4 OF 006 ¶6. (SBU) The BMTF would incorporate international donor and Afghanistan-based USG personnel where possible. The structure as currently envisioned is estimated to require nine full time positions, two part time (not funded by this proposal) and two support positions in Kabul and 12 observers/mentors for the top four BCPs for a period of 18 months. The approximate cost of these positions would be USD 6 million over the 18 month period split into USD 1.5 million in 2006 and USD 4.5 million in 2007. The positions would be as follows: -- BMTF Program Director (full time): Directs and leads the BMI activity. Required skills include management of complex projects and high level of interpersonal skills. A background in Customs would be a significant advantage. We see this position as being filled by an international person from a country or organization (e.g. Germany, EC) already involved in Border Management issues. -- Deputy Director and Lead Planner (O-6 from CFC-A full time): Performs planning function and provides back-up for the Program Director. It should be filled by an experienced planner with project management experience. -- GoA Coordinator (CFC-A part time): Maintains on- going working relationships between the Task Force and the Ministries of Interior, Finance, Commerce and others as required. This position would be part time and could be filled by CFC-A's PMI Finance Ministry liaison. -- Trade Facilitation Coordinator (USAID part time): Ensures that policies, practices and procedures addressed as part of BMI implementation are consistent with long range plans to facilitate trade between Afghanistan and its regional neighbors. This position would be part time and could be filled by a USAID Bearing Point Ministry of Commerce advisor. -- Customs System Design and Implementation Coordinator (full time): Expert familiar with all aspects of immigration and customs. Once a specific customs "model" is agreed by the GoA, an immigration and customs expert from a country using the chosen "model" would be the best fit. (This could be a USG official from DHS, but this determination would be made later.) -- Finance/Metrics and Donor Coordinator (full time): Researches and advises on sources and applications of funds for BMI related activities including sustainment, equipment and capital facilities. Recommends potential sources of funding necessary to fill voids identified in the sources/applications exercise. Establishes and reports on metrics to indicate progress in process and results. Ensures that donor pledges and commitments are identified, rationalized and applied according to BMI goals. This position could be filled from international donor sources. -- Border Police Systems and Integration Coordinator (full time): Expert familiar with all aspects of Border Police requirements, the interface between Customs and Border Police and can recommend system changes. This position could be filled with a German national detailed from the Police Training Program (GPPO). KABUL 00001975 005.4 OF 006 -- Pilot Project Coordinator (full time): Alternate Customs system expert to ensure pilot project at Islam Qalah is effectively executed and also provide guidance during each new BCP roll out. This could be a detailee from the US Army Corps of Engineers (USACE) or CFC-A. -- Infrastructure Coordinator (full time): Preferably from US Army Corps of Engineers (USACE) or CFC-A) who can maintain oversight and synchronization of all infrastructures and delivery of trained personnel at each BCP. -- Field LNO (full time): Alternate financial expert and on site reporter of BCP activities. This could be a detailee from the US Army Corps of Engineers (USACE) or CFC-A. -- EXBS Advisor (part time): Expert with focus on EXBS activities. This position already exists within the Embassy -- Observers/mentors (12 full time): Phased into the BMTF as the BCPs are aligned with correct policies and procedures. These contract personnel would be the collective consciousness of the system, based at the BCPs, to develop and enforce ethical behavior and conformance to GoA initiatives. -- Support Staff ( 2 full time): Secretary and Interpreter/Translator. -------------- ACTION PLAN: INFRASTRUCTURE SUPPORT -------------- ¶7. (SBU) To effect rapid change in border management and customs revenue collection, the BMTF would need to aggressively move to improve the top four BCPs (Islam Qalah, Towraghundi, Towrkham and Shir Khan Bandar) with appropriate facilities layout, traffic and goods flow and standard operational capabilities. Rapid implementation at Islam Qalah would occur over the next 3 to nine months and include the following: key components to regulate and control pedestrian and vehicular traffic (USD 1 million),training of customs officials and customs police in cooperation with the Italian government (USD 500,000),inspection equipment (lighting, cameras, tools, etc) (USD 1 million) and other BCP infrastructure to ensure the protection of collected revenue (USD 500,000). At Towraghundi additional traffic control would be installed (USD 300,000) and office capacity for customs officials on Commerce Ministry land (USD 100,000). Infrastructure at Towrkham has recently been completed by the European Commission and only minimal incremental infrastructure expenditure should be required. Shir Khan Bandar infrastructure is fully funded by JIASC and European Commission. As the program develops additional donors will be solicited to contribute to the entire BMI infrastructure effort. (8) (SBU) ACTION REQUESTED- FUNDING OF USD 9.4 MILLION FOR BMTF AND INFRASTRUCTURE. Washington Agencies are advised that the BMTF will require USD 9.4 million to move forward on the BMTF personnel actions and the necessary facility, equipment and personnel training requirements at the four KABUL 00001975 006.4 OF 006 top BCPs. This includes security costs that will be complemented by Forward Operating Bases (FOBs) being built and managed by Dyncorp. The figures are based on the state of existing infrastructure and current levels of international donor commitment, and will complement current and anticipated levels of donor commitments. -------------- COMMENT -------------- (9) (SBU) The BMI addresses all aspects of border management but with a core focus on customs revenue. GoA customs collections in the Afghan year 1384 (21 March 2005 to 20 March 2006) were approximately USD 190 million, representing almost 50 per cent of total GoA revenues. The measures described above are estimated to provide an increase in annual customs revenue of at least USD 50 million or a payback of the requested funds within one year of their receipt. When applied country-wide (over a five year plan),the overall revenue increase can be expected to be in the area of USD 400 million (the magnitude of this potential increase is estimated by various donors to be between USD 200 million and USD 600 million). The security aspects will also be important although they are more difficult to quantify. NEUMANN