Resolving Bulgaria's Unpaid Parking Tickets; Advancing our

UNCLAS SOFIA 000940 SIPDIS DEPT PASS TO USAID WASHDC SIPDIS SENSITIVE BUT UNCLASSIFIED E.O. 12958: N/A TAGS: EAID PREL PARM BU SUBJECT: Resolving Bulgaria's Unpaid Parking Tickets; Advancing our MSP Goals ¶1. (SBU) This is an action request, see para 3. ¶2. (SBU) In June, the Department sent a diplomatic note to the Bulgarian Embassy requesting the GOB pay USD 316,082 in accumulated parking tickets by September 1, or lose USD 449,951 in USG assistance for FY07. In reviewing the available data, Post is uncertain that these figures are accurate. Before proceeding to any withholding of assistance monies, we should reconcile what seems to be confusing and contradictory recordkeeping. Moreover, as Bulgaria is not receiving FY07 USAID assistance; any cut would have to come from Bulgaria's FMF account, which we are using to build the capabilities of our Bulgarian ally for missions in support of U.S. and coalition operations in Iraq and Afghanistan. ¶3. (SBU) ACTION REQUEST: Post requests Washington's assistance in ascertaining the true value of outstanding fines owed by the GOB. The Bulgarian Ambassador to Washington has indicated her willingness to work with her government to get this money paid. Post has, and will continue to, vigorously pursue this matter. To achieve maximum traction, it is essential to determine precisely what Bulgaria actually owes, and what we have previously withheld. With that information, we can turn to the larger policy question whether it is in our interests to decrease U.S. military assistance to an ally standing by us in Iraq and Afghanistan. Competing Accounting -------------- ¶4. (SBU) Post has been unable to reconcile the available data as to what Bulgaria actually owes in unpaid fines and penalties. An F-provided spreadsheet outlines accumulated DC and NYC parking fines from FY98 to FY07, totaling USD 409,047. Calculating at 110 percent in order to determine the assistance withholding figure, that spreadsheet shows USD 449,952 as a balance due. It also shows that USG assistance to Bulgaria over the same period was reduced by USD 133,869, to leave Bulgaria currently owing USD 316,083 to clear its arrears. Unfortunately, this spreadsheet is confusing and contradictory. Some data fields appear to show fines earned in that discrete year, while other data fields in the same column appear to show accumulated totals. It shows withholding for years 1998, 1999, 2000, 2001, 2002, 2005, and 2006 but not for 2003 and 2004. Interestingly, F's chart shows those USD 56,232 and USD 266,387 under the column "Balance Due" for those years, with no entries under withholdings. But, we suspect that these figures may have been mis-entered in the wrong column. ¶5. (SBU) A different F spreadsheet shows assistance to have been withheld from FY 2001 through FY 2006 - including both FY 2003 and ¶2004. But, USAID/Bulgaria has a slightly different set of numbers. According to those spreadsheets, both USAID/Bulgaria and F show the same withheld amounts for 2001 (USD 710),2002 (USD 107,496),2003 (USD 56,232),2004 (USD 266,387) and 2005 (USD 17,683). In 2006, USAID/Bulgaria's records indicate USD 68,000 was withheld, while F's chart only shows USD 4,098 in deductions. The first F spreadsheet shows Bulgaria owes USD 316,083. The second F spreadsheet shows USD 452,786 was withheld from FY01-FY06; and USAID figures show USD 516,508 was withheld from FY01 through FY06. Both the latter figures are above what Bulgaria is shown to owe in fines and penalties. ¶6. (SBU) We request that Washington re-certify the numbers and reconcile the USAID and F numbers. With a clean sheet, we can credibly go to the Bulgarians that they make good on what they owe New York and District. Military Aid for an Ally in Iraq and Afghanistan -------------- --- ¶7. (SBU) Once we have accurate numbers, we can then determine if additional funds must be withheld. If that is the case, we must determine whether it is in U.S. national interests to tap into the FMF account at a time when we are using that to bolster our ally's capability to contribute in Iraq and Afghanistan. USAID is not providing assistance to Bulgaria with FY07 funds; and naturally there is no FY07 USAID assistance to cut. Any withholding would come from Bulgaria's Foreign Military Financing (FMF). Our FMF assistance goes to improving Bulgaria's capabilities to work with U.S. and NATO forces in its missions in Iraq and Afghanistan. Cutting FMF at the USD 316,083 level would effectively remove provision of three HMMWVs from our assistance to Bulgaria - HMMWVs which Bulgaria would deploy to fulfill its Iraq and Afghanistan missions. HMMWVs were a key topic in President Bush's June meetings in Sofia. Embassy Sofia recommends strongly that we scrub our numbers for accuracy and then have an inter-agency policy discussion before looking to the FMF account for any withholding. KARAGIANNIS