INDEPENDENT ELECTION COMMISSION FACES

UNCLAS SECTION 01 OF 02 KABUL 000043

SIPDIS

SENSITIVE

DEPT FOR SA/FO AMBASSADOR QUINN, S/CT, SA/A
NSC FOR AHARRIMAN, KAMEND
CENTCOM FOR POLAD, CG CFC-A, CG CJTF-76
STATE PLEASE PASS USAID
USAID FOR AID/ANE, AID/DCHA/DG
TREASURY FOR APARAMESWARAN

TAGS: PGOV PREL PINR KDEM AF
SUBJECT: INDEPENDENT ELECTION COMMISSION FACES
CHALLENGES



1. (SBU) Summary. The United Nations Development
Program faces a USD 11 million shortfall from the 2005
Wolesi Jirga and Provincial Council elections and an
additional 2.9 million for transition support to the
new Afghan Independent Election Commission (IEC)
Without additional assistance, the UNDP may sell off
election assets to meet its debts. More importantly the
IEC will not have the financial support it needs to
become a credible, functioning national election
commission and the international community may shoulder
an even greater burden to fund and administer future
elections in Afghanistan. End Summary.

Election Budget Shortfall Greater than Expected
-------------- --


2. (SBU) With the inauguration of the National
Assembly on December 19, the Joint Electoral Management
Body (JEMB) dissolved and the Independent Electoral
Commission (IEC) assumed all powers to administer and
oversee electoral processes. While only three weeks
old, the IEC is already facing serious budgetary and
operational challenges. The UNDP, which oversees the
election project on behalf of donors, faces
unanticipated costs in both the budget for the 2005
parliamentary elections and in the transition and
capacity-building budget for the new IEC.


3. (SBU) Higher-than-expected costs for ballot
production and transportation increased the total cost
for the 2005 Wolesi Jirga and Provincial Council
elections by USD 9 million (from USD 159 million to USD
168 million). Combined with the unfunded amount from
the election budget of USD 2.1 million, the total 2005
election deficit will be around $11.1 million that must
now be covered by the UNDP. The deficit is primarily
owed to UNOPS, a sub-contractor to UNDP, responsible
for election personnel, procurement, logistics,
supplies, and equipment.


4. (SBU) The IEC also needs an additional USD 2.9
million in order to cover its own costs until March 20,
when the GOA is expected to take over annual
operational costs. The USD 2.9 million would cover
salaries for IEC staff (national and 34 provincial
staff),limited operational costs, 4 to 6 international
experts, and electoral administrative training and
civic education projects. This budget does not cover a
future voter registration pilot project, annual
operating costs, or the necessary delimitation of
district and municipal constituency.

Transfer of Assets to IEC Begins
--------------


5. (SBU) An earlier agreement with UNDP and UNOPS that
election assets would be transferred to the IEC, the
provincial election offices, provincial councils, and
the parliament has begun to be implemented. However,
election commissioners have expressed concerns that
computers, vehicles and phone equipment may be sold off
to cover the deficit before the national and provincial
IEC offices are adequately equipped. They also
expressed a concern that governors in each province
have been entrusted with the equipment and there are
reports that equipment is missing. UNOPS also decided
not to transport back to the Kabul the thousands of
chairs, tables and voting screens used to equip the
26,000 polling stations. Instead, they are writing a
proposal to UNDP to give these election assets to the
"best community recipient" in each province and
district. However, the best community recipient may be
determined by UNOPS not to be the election offices or
the provincial councils. Embassy and USAID election
advisors are now in discussions with UNOPS to ensure
that election assets are offered first to the
provincial election offices or the provincial councils.

Land Dispute on the Horizon
--------------


6. (SBU) The final challenge currently for the IEC is
a land dispute - not an uncommon problem in
Afghanistan. UNOPS built eight buildings on a large
parcel of land supposedly owned by the Government of
Afghanistan. However, a dispute has arisen between the
President's office and several ministries about the
land title. The IEC received a letter of eviction from
the Ministry of Power and Water recently and the
Education and the Mines and Industry Ministries have
also laid claim to the land. The Election Commissioners
are looking to President Karzai to settle the land
ownership dispute.

Comment: Additional Aid to IEC Will be Needed
--------------


7. (SBU) These debts threaten to cripple the IEC
before it has a chance to get of the ground, and could
lead to additional GOA funding requests for future
elections and current capacity-building projects, if
not addressed soon. Without a functioning IEC, the
international community may be asked once again to
support administrative costs, and possibly administer
elections currently being discussed for 2006 or 2007.
The United States contributed USD 40 million in direct
support to the 2005 UNDP election budget and $500,000
to the IEC's transitional budget. Thus far, only the
US and UNDP have made a donation for the IEC's
transitional operations (UNDP has contributed
$400,000). The US will also provide an estimated USD 2-
3 million in in-kind support (such as technical
assistance, a resource center, public outreach, and
training) over the next year to the IEC and its
subsidiary bodies via its democracy development
implementing partners such as NDI, IRI, TAF and IFES.
The needs for the IEC are real, but we have already
supplied the lion's share of the funding. It is now
time for the other international donors to fill the
gap. End Comment.


8. (SBU) Note: A December 19 letter from SRSG Jean
Arnault to Ambassador Neumann requested donors pony up
an additional USD 16 million, as well as solicit funds
to cover the past deficits. The Ambassador will
respond with a letter acknowledging Arnault's request,
noting the importance of elections and the IEC,
reminding the SRSG of the large contributions we have
already made, but making no/no new commitments. End
Note.

NEUMANN