GUATEMALA'S NOMINEE FOR 2008 SECRETARY'S AWARD FOR

UNCLAS GUATEMALA 002101 SIPDIS SIPDIS DEPT FOR WHA/CEN DEPT ALSO FOR G/IWI ANDREA BOTTNER E.O. 12958: N/A TAGS: KWMN PREL KPAO PHUM KDEM ECON KJUS GT SUBJECT: GUATEMALA'S NOMINEE FOR 2008 SECRETARY'S AWARD FOR INTERNATIONAL WOMEN OF COURAGE REF: STATE 126072 ¶1. Embassy is pleased to nominate Carolina Roca, Superintendent of the Guatemala Tax Authority (SAT),as Guatemala's "Woman of Courage" for the 2008 Secretary's Award (reftel) in recognition of her outstanding courage and leadership in modernizing the SAT and advocating for tax reform in Guatemala. Roca has been notified of the nomination. ¶2. Biographical information: Full Legal Name: Lesbia Carolina Roca Ruano de Obiols Title: Superintendent Institution: Guatemala Tax Authority (SAT) Address: SAT Tower, 7th Avenue 3-73, Zone 9, Guatemala City, Guatemala Telephone: (502) 2362-7567 Email: croca@sat.gob.gt Date of birth: April 15, 1956 Country of birth: Guatemala Citizenship: Guatemala Passport Number: 005233910 ¶3. Justification for award selection: As Superintendent of the Guatemala Tax Authority (SAT),Carolina Roca, 51, holds one of the most visible and most challenging public offices in Guatemala. Among her principal accomplishments during her administration was modernizing the SAT and instituting tax reform. Prior to her appointment in January 2005, the SAT was beset by serious institutional problems, including corruption, persecution of taxpayers, lack of vision, inefficiency, and a negative public image. Her predecessor was sentenced to 30 years in prison for money laundering, fraud, and extortion, and other SAT personnel were prosecuted for acts of corruption. As Superintendent responsible for the collection and administration of taxes and customs, Roca has spearheaded institutional, legal, and cultural reforms to improve the culture of compliance in a country historically resistant to tax collection. By the end of 2007, Roca will have increased tax revenues by 31.2 percent since December 2004, despite the loss of various sources of revenue and the reduction of tariffs. Her strategy has focused on expanding the tax base, facilitating compliance, strengthening audits, and creating strategic alliances to facilitate commerce. Under her leadership, the total number of individual and corporate taxpayers increased from 404,588 in 2004 to 441,349 in September 2007. Roca also implemented a process to professionalize, modernize, and strengthen customs operations. When appointed Superintendent in 2005, customs operations were fraught with systemic problems, including discretionary and irregular processes, lack of trained and reliable personnel, and insufficient technology and information systems. Roca dismissed 50 percent of the customs staff for corruption or incompetence, and hired and trained new personnel. Roca's efforts have resulted in significant reduction in customs clearance time and improvement in safety standards in international trade, including promotion of the Container Security Initiative (CSI) program at Guatemalan ports. In addition, her tenure has produced improved compliance with Free Trade Agreement customs commitments, reduced corruption, and improved customer service. Earlier this year, Roca collaborated with the U.S. Department of Treasury to strengthen SAT's capacity to audit oil imports, and to establish and train a criminal investigative unit within SAT. Her ongoing commitment to transparency and enhanced container security has facilitated licit international trade. Roca strives to meet international standards of excellence in tax administration through legal, technical, and financial independence, a visionary strategy, and a good management team. In the context of Guatemala's violent environment, where tax collection and customs inspection are potentially life-threatening, Roca's determined efforts to change the culture of compliance and to strengthen democratic governance have been heroic, meriting international recognition. Roca obtained a B.A. in economics from San Carlos University and a Masters degree in Public Administration from Harvard University in 1990. She served as Vice Minister of Finance 1993-94 and Vice Minister of Energy and Mines in 2004. In January 2005, she was appointed Superintendent of the Guatemala Tax Authority. ¶4. Ambassador's comment: As the above indicates, Carolina Roca has done a superlative job as SAT administrator. I want to highlight in particular the element of personal courage in her services. Taking on Guatemala's entrenched legal and not-so-legal business interests and overhauling a notoriously corrupt bureaucracy is not only a multifaceted achievement but a risky one. The "occult powers" here are not hesitant to employ violence, including murder, to combat efforts such as those undertaken by Roca. Implicit recognition of this danger is the assignment of a round-the-clock security detail and follow car for Roca. She has paid, and continues to pay, a personal price for her public service. But the only way forward for Guatemala is through the leadership and bravery of women (and men) such as Carolina Roca. Derham