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