Identifier
Created
Classification
Origin
06PARIS2207
2006-04-04 17:42:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Paris
Cable title:  

UNESCO: EXECUTIVE BOARD CONSIDERS DG'S PLANS

Tags:  AORC BR UNESCO 
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041742Z Apr 06
UNCLAS SECTION 01 OF 03 PARIS 002207 

SIPDIS

FROM USMISSION UNESCO PARIS

SENSITIVE

STATE FOR IO/UNESCO KELLY SIEKMAN
STATE FOR L JUDITH OSBORNE
STATE FOR IO/S LISA SPRATT

E.O. 12958: N/A
TAGS: AORC BR UNESCO
SUBJECT: UNESCO: EXECUTIVE BOARD CONSIDERS DG'S PLANS
FOR "REORIENTATION" OF TROUBLED BRASILIA OFFICE


UNCLAS SECTION 01 OF 03 PARIS 002207

SIPDIS

FROM USMISSION UNESCO PARIS

SENSITIVE

STATE FOR IO/UNESCO KELLY SIEKMAN
STATE FOR L JUDITH OSBORNE
STATE FOR IO/S LISA SPRATT

E.O. 12958: N/A
TAGS: AORC BR UNESCO
SUBJECT: UNESCO: EXECUTIVE BOARD CONSIDERS DG'S PLANS
FOR "REORIENTATION" OF TROUBLED BRASILIA OFFICE



1. THIS IS A GUIDANCE REQUEST, SEE PARA 2.


2. (SBU) SUMMARY AND INTRODUCTION: AT THE MARCH 29-31
MEETING OF THE FINANCIAL AND ADMMINSTRATIVRE EXPERTS'
GROUP, A MEMBER OF UNESCO'S LEGAL OFFICE SAID THAT HIS
OFFICE HAD ADVISED THE SECRETARIAT THAT CERTAIN
ACTIVITIES IN WHICH UNESCO IS SUB-CONTRACTING WORKERS
FOR BRAZILIAN GOVERNMENT MINISTRIES MIGHT CONSTITUTE A
LEGAL RISK FOR THE ORGANIZATION, GIVEN THE FACT THAT
SUCH SUB-CONTRACTING PRACTICES HAVE GIVEN RISE TO
CHARGES BROUGHT BY A BRAZILIAN PROSECTOR AGAINST THE
HEAD OF THE UNESCO OFFICE AND THE UNESCO DG. THE
SECRETARIAT REPORTED THAT UNESCO PLANNED TO CONTINUE

SIPDIS
SUCH ACTIVITIES THROUGH 2007, GIVEN THE LIMITED
CAPACITY OF THE BRAZILIAN GOIVERNMENT TO FULFILL THESE
FUNCTIONS. ANOTHER MEMBER OF UNESCO'S LEGAL STAFF
CONFIDED TO THE U.S. DELEGATION THAT THE CONTRACT
CONDITIONS AND CONTRACTING PARTIES INVOLVED IN THE
CONTINUING ACTIVITIES ARE DIFFERENT FROM THOSE THAT
HAVE GIVEN RISE TO LEGAL CHARGES, WITHOUT SPECIFYING
HOW, EVEN WHEN PRESSED; BUT HE ALSO ACKNOWLEDGED THAT
HIS OFFICE HAD ADVISED THE SECRETARIAT TO LIMIT RISK BY
DISCONTINUING THE CONTRACTS.


3. (SBU) MISSION REQUESTS GUIDANCE ON WHETHER IT IS
ADVISABLE TO PRESS THE ISSUE at the executive board OF
WHETHER THESE PROGRAMS PRESENT A LEGAL RISK AND SHOULD
thus BE DISCONTINUED; AND IF SO, WHEN. IF THIS IS
DESIRABLE, MISSION REQUESTS LANGUAGE TO AMEND THE
CURRENT VERSION OF THE DRAFT REOSLUTION (174 EX/21,
CURRENT VERSION IN LAST PARA OF THIS MESSAGE.) ANY U.S
ATTEMPT TO INSERT SUCH LANGUAGE LIKELY WILL BE
FORCEFULLY COUNTERED BY BRAZIL. AN AMERICAN,
RREPORTEDLY ONE OF THE TWO CANDIDATES STILL IN THE
RUNNING FOR THE POST OF DIRECTOR OF THE BRASILIA
OFFICE, WOULD BE IN AN IDEAL POSITION TO EVALUATE THE
SITUATION AND ENACT REFORMS - IF HE WERE TO BE CHOSEN.
THIS APPOINTMENT WOULD PROBABLY REQUIRE THE APPROVAL OF
THE BRAZILIAN DELEGATION TO UNESCO, CHARY OF ANY MAJOR
CRITICISM OF THE BRASILIA OPERATION. END SUMMARY AND
INTRODUCTION.

U.S. PRESSES FOR ACCOUNTING/REFORMS AT BRASILIA OFFICE
-------------- --------------


4. (U) THE CURRENT SESSION OF UNESCO'S EXECUTIVE BOARD

WILL TACKLE THE ISSUE OF UNESCO'S TROUBLED BRASILIA
OFFICE; AGENDA ITEM 19 PRESENTS THE OPPORTUNITY TO
DEBATE "THE REPORT OF THE DIRECTOR GENERAL ON THE
ACTIVITIES AND THE RESULTS OF THE UNESCO OFFICE IN
BRASILIA" (174 EX 21). THIS ITEM HAS ALREADY BEEN
DISCUSSED AT THE F/A EXPERTS' GROUP MEETING (MARCH 29-
31) AND IS ON THE AGENDA OF THIS WEEK'S FINANCIAL AND
ADMINISTRATIVE (F/A) COMMISSION AND PROGRAM AND
EXTERNAL RELATIONS (P/X) COMMISSION AS WELL.


5. (U) IN ADVANCE OF THE FINANCIAL AND ADMINISTRATIVE
(F/A) EXPERTS' MEETING, THE U.S AND ITS GENEVA GROUP
PARTNERS DECIDED TO PRESS OTHER MEMBER STATES TO ADD
SUBSTANCE TO THE DRAFT DECISION PROPOSED BY THE
SECRETARIAT (PARA 40 DOCUMENT 174/EX 21),INCLUDING TO

SIPDIS
EXPRESS "CONCERN WITH ADMINISTRATIVE, FINANCIAL AND
OTHER WEAKNESSES" AND TO REQUEST THE DIRECTOR GENERAL
TO REPORT BACK ON BRASILIA OFFICE REFORM EFFORTS AT THE
FALL 2006 EXECUTIVE BOARD. THE GENEVA GROUP SUCCEEDED
IN INCLUDING SUCH LANGUAGE IN THE VERSION OF THE DRAFT
RESOLUTION THAT WILL BE FORWARDED TO THE F/A AND P/X
COMMISSIONS THIS WEEK (APRIL 6-11),ALONG WOITH
LANGUAGE RECOMMENDING THAT THE DECENTRALIZATION PROCESS
AND THE SECRETARIAT'S ACTION PLAN ON EXTRA-BUDGETARY
FUNDS BE INFORMED BY LESSONS LEARNED VIA THE BRASILIA
OFFICE. (TEXT AT LAST PARA OF THIS MESSAGE) HOWEVER,
THE BRAZILIAN OBSERVER TO THE F/A EXPERTS' GROUP
SIGNALED THAT HE WOULD PRESS FOR A MORE "BALANCED"
RESOLUTION AT THIS WEEK'S F/A AND P/X COMMISSIONS THAT
WOULD HIGHLIGHT WHAT HE DESCRIBED AS PRAISEWORTHY
PROGRAMS INITIATED BY UNESCO'S BRASILIA OPERATION.

AS SOME THORNY LEGAL ISSUES PERSIST
--------------


6. (U) AT THE MEETING OF THE F/A EXPERTS' GROUP, LEGAL
ISSUES AROSE THAT HAD NOT BEEN DEALT WITH IN THE DG'S
REPORT ON THE BRASILIA OFFICE. AS THE PELIMINARY REPORT
OF THE F/A EXPERTS' MEETING HIGHLIGHTS: "SOME MEMBERS
ASKED THE LEGAL ADVISOR ABOUT THE COURT CASE REFERRED
TO IN THE REPORT. THE LEGAL ADVISOR INFORMED THE GROUP
THAT THERE IS A CIVIL ACTION ALLEGING ACTS OF
ADMINISTRATIVE IMPROPRIETY THAT SEEKS APPLICATION OF
SANCTIONS AGAINST HIGH RANKING FORMER OFFICIALS OF A
PUBLIC AGENCY IN BRAZIL, AS WELL AS UNESCO AND ITS
FORMER REPRESENTATIVE IN THE COUNTRY, FOR ALLEGEDLY
CAUSING EXTENSIVE LOSSES TO THE PUBLIC COFFERS OF
BRAZIL. THE CIVIL ACTION HAS BEEN SUSPENDED, PENDING A
DETERMINATION BY BRAZIL'S SUPREME COURT AS TO WHETHER
UNESCO HAS IMMUNITY FROM LEGAL PROCESS IN THIS CASE
(NB: THE PROSECUTOR IS ARGUING THAT UNESCO'S IMMUNITY
DOES NOT APPLY, AS IT WAS ACTING IN A FIELD OUTSIDE OF
ITS MANDATE). ANOTHER MEMBER ASKED IF IT WOULDN'T BE
OPPORTUNE IN THIS CONTEXT TO END IMMEDIATELY ALL
ONGOING PROJECTS OUTSIDE OF UNESCO'S COMPETENCES. THE
LEGAL ADVISOR STATED THAT THE LEGAL OFFICE ADVISED THAT
ANY PROJECTS THAT WOULD NOT COMPLY WITH THE BRAZILIAN
LEGISLATION BE TERMINATED EXPEDITIOUSLY. THE
REPRESENTATIVE OF THE DIRECTOR GENERAL (HEAD OF FIELD
OFFICES) INDICATED THAT A TRANSITION STRATEGY IS
NECESSARY TO PERMIT A PROGESSIVE TRANSFER OF THE
ACTIVITIES OF THE PROJECTS IN QUESTION TO CONCERNED
AUTHORITIES, IN ORDER NOT TO DETRACT FROM PROGRAMS OF
NATIONAL IMPACT.


7. (SBU) U.S. MISSION OFFICERS QUESTIONED ANOTHER
REPRESENTATIVE OF THE LEGAL ADVISOR'S OFFICE ON THE
LEGAL RISK POSED BY CONTINUING THE SUB-CONTRACTING
ACTIVITIES IN AREAS OUTSIDE OF UNESCO'S MANDATE
(INCLUDING HEALTH). HE ACKNOWLEDGED THAT HIS OFFICE
HAD ADVISED THE SECRETARIAT TO MINIMIZE ITS EXPOSURE TO
RISK BY DISCONTINUING THE CONTRACTS, BUT SAID THAT THAT
THE CONTRACT CONDITIONS AND CONTRACTING PARTIES
INVOLVED IN THE CONTINUING ACTIVITIES ARE DIFFERENT
FROM THOSE THAT HAVE GIVEN RISE TO LEGAL CHARGES. WHEN
PRESSED, HOWEVER, HE DID NOT OFFER MORE DETAIL ON HOW
THESE CONTRACTS DIFFERED.


8. (U) AT A SUBSEQUENT SESSION OF THE F/A EXPERTS'
MEETING, THE LEGAL ADVISOR WHO IS MOST CLOSELY
FOLLOWING THE BRASILIA DOSSIER CLARIFIED HIS POSITION.
HE SAID THAT IT WOULD BE A MISTAKE TO CHARACTERIZE
BRASILIA OFFICE ACTIVITIES AS "ILLEGAL" - THE TERM
"CONTRARY TO BRAZILIAN LAW" WOULD BE MORE EXACT, HE
SAID. IT IS FOR THAT REASON THAT AN APPROACH THAT
MINIMIZES RISK IS IMPORTANT: "WE CANNOT JUDGE WHETHER A
WINDING DOWN OF CURRENT OPERATIONS WOULD BE ACCEPTABLE
TO A BRAZILIAN PROSECUTOR."


9. (U) TEXT OF RESOLUTION ADOPTED BY THE F/A EXPERTS'
GROUP:

THE EXECUTIVE BOARD,

HAVING CONSIDERED DOCUMENT 174 EX/21, IN THE LIGHT OF
DOCUMENTS 174 EX/27, 174 EX/29 AND 174 EX/INF.4

NOTING THE SCALE AND IMPORTANCE OF THE OPERATION
MANAGED BY THE UNESCO BRASILIA OFFICE

CONCERNED WITH THE ADMINISTRATIVE, FINANCIAL AND
PLANNING WEAKNESSES OF THE MANAGEMENT OF THE
EXTRABUDGETARY ACTIVITIES BY THE UNESCO BRASILIA OFFICE
AND IN PARTICULAR WITH THE INADEQUACY OF INTERNAL
CONTROLS AND COMMUNICATIONS WITH HEADQUARTERS RECALLS
THE IMPORTANCE FOR ACTIVITIES AT FIELD LEVEL TO BE IN
LINE WITH UNESCO'S OBJECTIVES DEFINED IN THE C/4 AND
C/5

TAKES NOTE OF THE ACTIONS TAKEN AND PLANNED BY THE
DIRECTOR-GENERAL TO REORIENT THE OPERATIONS OF THE
UNESCO OFFICE IN BRASILIA AND TO REMEDY THE
DEFICIENCIES IN THE MANAGEMENT OF THE OFFICE AND
MONITOR THE SCOPE OF THE OPERATIONS;

INVITES THE DIRECTOR-GENERAL TO CONTINUE TO IMPLEMENT
HIS ACTION PLAN FOR THE REORIENTATION OF THE UNESCO
OFFICE IN BRASILIA IN ACCORDANCE WITH DECISIONS 174
EX/. AND 174 EX/. AS WELL AS THE RECOMMENDATIONS FROM
BOTH IOS AND THE EXTERNAL AUDITOR AND TO REPORT BACK TO
ITS 175TH SESSION.

REQUESTS THE DIRECTOR-GENERAL TO ENSURE THAT PROPOSALS
FOR UNESCO'S ACTIVITIES IN BRAZIL ARE CONSISTENT WITH
AN OVERALL STRATEGY FOR DECENTRALIZATION, AS PART OF
THE RATIONAL DELIVERY OF PROGRAMMES AGAINST UNESCO'S
PRIORITY OBJECTIVES; AND THAT LESSONS LEARNED FROM THE
EXPERIENCE IN BRASILIA SHOULD BE TAKEN INTO ACCOUNT IN
FURTHER DEVELOPING THE DECENTRALIZATION STRATEGY.

ALSO REQUESTS THE DIRECTOR-GENERAL TO TAKE FULL ACCOUNT
OF THE LESSONS DERIVED FROM THE EXPERIENCE IN BRASILIA
INCLUDING THE SPECIFIC RISKS INVOLVED WITH SELF-
BENEFITING FUNDS WHEN DEVELOPING THE OVERALL STRATEGIC
VISION AND ACTION PLAN CALLED FOR IN DECISION 174 EX/.
PARA. .

OLIVER