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