NORWAY-FUNDED CORRUPTION EXPERT ADVISES MALAGASY

UNCLAS ANTANANARIVO 000523

SIPDIS

SENSITIVE
SIPDIS

STATE FOR AF/E MBEYZEROZ

E.O. 12958: N/A
TAGS: PGOV PHUM ETRD PREL ECON NO MA
SUBJECT: NORWAY-FUNDED CORRUPTION EXPERT ADVISES MALAGASY



1. (SBU) SUMMARY: Fredrik Galtung of the organization "tiri: Making
Integrity Work" provided donors and anti-corruption officials a
briefing May 25 following extensive consultations in Madagascar. He
identified judicial reform as the top priority for any substantial
improvement on transparency and integrity. In addition, he
highlighted the weaknesses of journalists and NGOs who could
potentially play a role in reducing corruption. Noting that a
degree of transparency is typically a prerequisite for economic
growth, Galtung called on the Malagasy to move beyond measuring
"activities" to measuring the "impact" of their policy. END
SUMMARY.

Judicial Reform Desperately Needed
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2. (SBU) Norway-financed corruption expert Fredrik Galtung of "tiri:
Making Integrity Work" (www.tiri.org) briefed top officials from the
Committee to Safeguard Integrity (CSI),the Independent
Anti-Corruption Bureau (BIANCO) and donors May 25 about findings
from his consultations. He identified judicial reform as
Madagascar's top priority in order to make any real progress in
combating corruption. Galtung noted that the special "chaine
penale" which was established to handle corruption was a good first
step, but must be reinforced. He described the rest of the judicial
system as totally ineffective, emphasizing that the USD 14 million
budget for the entire Justice Ministry, including prisons, was
barely a quarter the size necessary to be effective.


3. (SBU) Elaborating on judicial failures, Galtung reported that
private sector operators "feared the Malagasy justice system" and
"avoided the courts at all cost." Without rule of law, protection
of investment, enforceability of contracts, and a level playing
field, Galtung concluded, economic development is virtually
impossible.

Weak Journalism and NGOs
--------------


4. (SBU) After the judicial system, Galtung identified weaknesses in
the media and civil society as obstacles to real progress toward
transparency in Madagascar. Journalists, he reported, are biased,
report cases only in return for payment, and are unwilling or unable
to practice investigative journalism. Likewise Madagascar's NGOs
are effective in limited areas related to the fight against
corruption, notably education and awareness activities. Galtung
argued that BIANCO and CSI cannot be effective alone as government
institutions, NGO advocacy and legal action against corrupt
practices are also key ingredients for success. He noted an
important risk in currently-funded activities: if awareness is
raised among Malagasy, but there is no action, no prosecutions,
people will quickly become frustrated.

Do Donors Have Long-Term Vision?
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5. (SBU) Galtung asked rhetorically if Madagascar's partners in the
donor community have a sufficiently long-term vision to battle
corruption. He commended Norway, USAID, and others for supporting
BIANCO and CSI, but emphasized it us ultimately the GOM that must
fund anti-corruption activities. He used examples from Hong Kong,
Singapore, France, and the United States to explain that governments
of advanced economies do not curb corruption simply for the prestige
or reputation for transparency. In fact the main motivation is that
good governance and fair economic practices are generally
prerequisites for economic growth.

COMMENT: Test of Rhetoric or Reality
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6. (SBU) Galtung's counsel did not fall on deaf years, as CSI
President Bakolalao Ramanandraibe and BIANCO Director General Rene
Ramarozatovo are two of the best-qualified senior officials in
government. Bako is a former magistrate with a strong legal
background and Ramarozatovo is a Lieutenant-General in the Malagasy
Army. The context and timing of Galtung's visit are interesting in
terms of the political will to fight corruption. The same week the
International Monetary Fund launched an audit of President
Ravalomanana's TIKO company to investigate unpaid import taxes
estimated at up to 13 billion Ariary (USD seven million). BIANCO
and an international accounting firm will conduct the audit of
TIKO's records back to July, 2006. While Galtung's presence is a
positive sign, the outcome of the audit may go further in separating
the reality from the rhetoric in the GOM's anti-corruption efforts.
END COMMENT.

MCGEE