FISCAL TRANSPARENCY IN DJIBOUTI

UNCLAS DJIBOUTI 000236

SIPDIS

DEPARTMENT FOR AF/E, AF/EPS AND EEB/IFD/OMA

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: EAID ECON PREL DJ
SUBJECT: FISCAL TRANSPARENCY IN DJIBOUTI

REF: STATE 16737


1. (U) The following is Embassy Djibouti's response to reftel
questions on fiscal transparency in Djibouti.


2. (SBU) The Government of Djibouti is showing increasing commitment
to transparency and accountability but needs capacity building and
continued support from the IMF and other international
organizations. The government of Djibouti makes its annual budget
public through the Official Journal, which is also available on the
Internet. The publicly-available budget includes all revenues and
expenditures, and is reasonably meaningful and accurate. However,
the budgeting process is not completely transparent.


3. (SBU) Djibouti's 1992 Constitution allowed for the establishment
of an independent body in charge of transparency and accountability.
However, this did not become a reality until 1997, when the
government of Djibouti created the Chambre des Comptes et de
Discipline Budgetaire (Chamber of Accounts and Fiscal Discipline,
CAFD) in response to a serious economic crisis and increased
pressures from the IMF. By 2000 the CAFD was staffed and
operational, and it published its first report in 2002.


4. (SBU) The CAFD has the authority to audit all public
establishments and implement necessary legal sanctions. In reports
published in 2002 and 2004, it has flagged cases of lack of
transparency and accountability in governmental agencies. A
2005-2006 report is currently being finalized.


5. (SBU) In addition to the CAFD, the "Inspection General D'Etat"
(State General Inspection, SGI),created in 2003 under the authority
of the Prime Minister, is charged with enforcing proper utilization
of human and material resources in the public sector. In its first
report, published in 2007, the SGI highlighted the need for a
strategy to improve accountability and management, and urged strict
enforcement of existing anti-corruption rules and regulations.


6. (U) In 2006, Djibouti's SGI was a founding member of the "Forum
des Inspections generales d'Etat d'Afrique" (African Forum of
Inspector General Offices, FIGE). FIGE, which brings together
Inspector General Offices from ten African countries to share best
practices, is headquartered in Djibouti.


7. (U) USAID currently provides assistance to both the SGI and the
CAFD under the Democracy and Governance Program. In 2007, USAID
support provided capacity-building and technical assistance to
enhance transparency and oversight. USAID provided two consultants
to the CAFD to review its mandate, train twenty-one magistrates, and
provide English instruction and English-language materials. UNDP
and the African Capacity Building Foundation also support the SGI.

SYMINGTON