ANTI-CORRUPTION STRATEGY: AUDITOR GENERAL

UNCLAS KINGSTON 000394 SIPDIS SENSITIVE SIPDIS STATE FOR INL/LP (BOZZOLO),INL/C (KOHN) AND WHA/CAR (BUDDEN) JUSTICE FOR OPDAT (LIPMAN) TREASURY FOR OTA (BORAKOVE) E.O. 12958: N/A TAGS: KCOR KJUS PGOV JM SUBJECT: ANTI-CORRUPTION STRATEGY: AUDITOR GENERAL ¶1. (SBU) BEGIN SUMMARY: IN ACCORDANCE WITH THE EMBASSY'S PLAN TO PROMOTE ANTI-CORRUPTION MEASURES, ACTING NARCOTICS AFFAIRS DIRECTOR (NASDIR) CALLED ON JAMAICA'S AUDITOR GENERAL, ADRIAN STRACHAN, IN ORDER TO GET A BETTER UNDERSTANDING OF HIS ROLE IN COUNTERING CORRUPTION BY PUBLIC OFFICIALS. NASDIR PRAISED STRACHAN'S EFFORTS EARLY IN THE YEAR TO BRING IRREGULARITIES IN GOVERNMENT ACCOUNTS TO THE ATTENTION OF PARLIAMENT AND THE PUBLIC. STRACHAN OFFERED SUGGESTIONS ON HOW THE U.S. SHOULD PROCEED. END SUMMARY. ¶2. (SBU) MEETING WITH AUDITOR GENERAL (AG) ADRIAN STRACHAN ON MARCH 5, NASDIR INFORMED HIM OF THE EMBASSY'S INTEREST IN PURSUING A MORE PRO-ACTIVE APPROACH IN HELPING THE GOJ ATTACK THE PROBLEM OF CORRUPTION. REFERRING TO LOCAL MEDIA ATTENTION WHICH WAS BEING GIVEN TO THE INCSR'S STATEMENTS ABOUT CORRUPTION IN JAMAICA, STRACHAN URGED THE USG TO CONTINUE TO MAKE STRONG COMMENTS ON TRANSPARENCY, ACCOUNTABILITY AND RULE OF LAW. HE (AND OTHERS IN AND OUT OF GOVERNMENT) BELIEVES THAT EXTERNAL "PULL" HELPS TO SENSITIZE THE GOVERNMENT TO THE NEED FOR CHANGE, FOR COMPLIANCE WITH LAWS AND REGULATIONS; AND NOT JUST PAY LIP SERVICE TO SUCH THINGS. ¶3. (SBU) STRACHAN EXPLAINED THAT HE ALSO SITS ON THE INTEGRITY COMMISSION, WHICH MONITORS THE INTEGRITY OF PARLIAMENTARIANS, AND THE CORRUPTION PREVENTION COMMISSION (CPC),WHICH IS TO ENSURE THAT PUBLIC SERVANTS ARE NOT CORRUPT. HE SUGGESTED THAT BOTH COULD BENEFIT FROM OUR ATTENTION. THE CPC HAS BEEN HAMSTRUNG BY LACK OF GOVERNMENT BUDGET SUPPORT, ALTHOUGH THEY HAVE ASKED FOR INCREASED STAFF IN THE ANNUAL BUDGET DUE IN APRIL. CPC NEEDS, HE SAID, TO DEVELOP A CAPACITY TO DO INVESTIGATIONS. HE ENCOURAGED US TO MEET WITH THEM AND PERHAPS PROVIDE TRAINING. COMMENT: THE DIRECTOR OF PUBLIC PROSECUTIONS ALSO POINTED OUT THE NASDIR THAT CPC NEEDS ATTENTION. SO FAR, ALL THEY HAVE BEEN ABLE TO DO IS RECEIVE FINANCIAL DISCLOSURE REPORTS FROM PUBLIC OFFICIALS. EVEN COMPLIANCE WITH SUBMISSION OF THE REPORTS HAD BEEN A PROBLEM. WITHIN THE PAST YEAR, CPC DECIDED TO FILE LEGAL CHARGES AGAINST PERSONS WHO FAILED TO SUBMIT THEIR REPORT. AS A RESULT THE REPORTS WERE FILED AND CHARGES WERE DROPPED. NASDIR UNDERSTANDS THAT THESE REPORTS ARE NOT ANALYZED FOR SUSPECT INFORMATION WHICH WOULD LEAD TO INVESTIGATIONS. THEY ARE SIMPLY FILED. END COMMENT. ¶4. (SBU) THE AG SUGGESTED THAT THE GOJ SHOULD ADDRESS THE ISSUE OF CONFLICT OF INTEREST AND PRODUCE A STRONG CODE OF ETHICS LAW WHICH PROVIDES SERIOUS PENALTIES FOR VIOLATIONS. IN PARTICULAR, HE INSISTED ON A LAW THAT CLEARLY MAKES IT A PUNISHABLE OFFENSE WHEN OFFICIALS FAIL TO COMPLY WITH EXISTING LAW. COMMENT: THAT POINT CAME TO THE EMBASSY'S ATTENTION IN JANUARY, WHEN STRACHAN EXPOSED "IRREGULARITIES" IN THE OPERATION OF THE UNIVERSAL ACCESS FUND COMPANY LTD. IT IS A GOVERNMENT-OWNED COMPANY THAT COLLECTS THE UNIVERSAL SERVICE LEVY FROM TELECOMMUNICATIONS COMPANIES AND IS SUPPOSED TO MANAGE THESE FUNDS THROUGH DISBURSEMENTS TO CABINET-APPROVED PROJECTS. THE AG EXPOSED THAT FUNDS WERE NOT PROPERLY MANAGED (THEY WERE NOT DEPOSITED INTO THE GOVERNMENT'S GENERAL FUND) AND, IN SOME CASE, NOT EVEN COLLECTED. HE SAID THESE ACTIVITIES WERE IN VIOLATION OF SECTION 114 OF THE CONSTITUTION AND SECTION 7 OF THE FINANCIAL ADMINISTRATION AND AUDIT ACT. IN RESPONSE, THE MINISTRY OF INDUSTRY, TECHNOLOGY, ENERGY AND COMMERCE RECOGNIZED THAT THEY WERE BREAKING THE LAW, BUT STATED LEGISLATIVE CHANGES WERE REQUIRED IN ORDER TO EXEMPT THE LEVY FROM THE BUDGET PROCESS. END COMMENT. ¶5. (SBU) HITTING AT A WIDESPREAD PROBLEM EXPERIENCED BY MOST OF THESE CORRUPTION-MONITORING BODIES, THE AG INDICATED THESE COMMISSIONS, HIS OFFICE, AND THE CONTRACTOR GENERAL'S OFFICE MUST HAVE ACCESS TO A LESS POLITICIZED SOURCE OF OPERATIONAL FUNDING. AT PRESENT, REQUESTS FOR FUNDING ARE DECIDED BY THE MINISTER OF FINANCE. IN THE UK, THE SYSTEM SEEMS TO WORK BETTER, BECAUSE THESE INDEPENDENT BODIES GO DIRECTLY TO A PARLIAMENTARY COMMITTEE TO OBTAIN FUNDING. COMMENT: CREATING A PARLIAMENTARY COMMITTEE HERE IN JAMAICA IS SOMETHING THE EMBASSY WILL EXPLORE WITH OUR BRITISH COLLEAGUES. END COMMENT. ¶6. (SBU) CONCLUSION: AS THE TITLE IMPLIES, THE AG AUDITS THE BOOKS OF JAMAICA'S PUBLIC BODIES, INCLUDING PARISH COUNCILS. HE HAS AN AUTHORIZED STAFF OF 173 WITH ONLY 15 VACANCIES. ACCORDING TO STRACHAN, HE IS NOT HURTING FOR LACK OF BUDGET SUPPORT. HE HAS BEEN OUTSPOKEN IN EXPOSING WRONG-DOING. THE PROBLEM, AS HE SAYS, IS THERE IS LITTLE HE CAN DO OTHER THAN EXPOSING THE WRONG-DOING. THE LAW AUTHORIZING THE AUDITOR GENERAL FUNCTION PROVIDES FOR A MAXIMUM PENALTY OF J$5000 (US$77) UPON CONVICTION IF SOME ONE REFUSES TO COMPLY WITH HIS REQUESTS FOR DOCUMENTS, TESTIMONY, ETC. LACK OF STRONG PENALTIES AND, IN MOST CASES, WEAK BUDGET SUPPORT ARE COMMON PROBLEMS FACED BY INDEPENDENT, WATCHDOG ENTITIES. IT APPEARS THAT THE GOJ IS IN NO RUSH TO STRENGTHEN THESE ENTITIES. JOHNSON