ANTI-CORRUPTION EFFORT GAINING TRACTION

UNCLAS KABUL 001973 SENSITIVE SIPDIS STATE FOR SCA/FO, SCA/A, S/CRS STATE PASS TO USAID FOR AID/ANE, AID/DCHA/DG NSC FOR JWOOD OSD FOR SHIVERS CG CJTF-101, POLAD, JICCENT E.O. 12958: N/A TAGS: PGOV AF SUBJECT: ANTI-CORRUPTION EFFORT GAINING TRACTION ¶1. (U) President Karzai and his team have taken several positive steps to combat corruption in the wake of the Paris Donors Conference, including publishing a comprehensive anti-corruption strategy and establishing a wholly new watch-dog office against future corruption. Encouragingly, a June 2008 World Bank review described Afghanistan's public financial management system as better than average for low-income countries, and, in some areas, better than average for middle-income countries. -------------- AFTER THE PARIS DONORS CONFERENCE -------------- ¶2. (U) The Azimi Commission delivered its report to Karzai in mid-July. The 200-page report comprehensively describes the problem of governmental corruption, identifies remedies, assigns remedial responsibilities to ministries and agencies, and sets target dates for corrective actions. The report is the GIROA's anti-corruption strategy. ¶3. (SBU) Karzai last week decreed the "High Office for Monitoring" law. It authorizes the High Office of Monitoring the Implementation of the Anti-Corruption Strategy, which includes special tribunals and designated anti-corruption prosecutors. A July 28 implementation decree established the office and, simultaneously, disestablished the totally ineffective General Independent Administration for Anti-Corruption (GIACC). -------------- ON-GOING -------------- ¶4. (SBU) Measures initiated by the Afghan government prior to Paris: -- The Ministry of Finance has increased its Internal Audit Department staff from 18 in 2005 to 127. New staff are trained in basic accounting and auditing, and supervised by qualified auditors. -- Over the past several months, Karzai has replaced the most corrupt and ineffective third of the Ministry of Interior's senior leadership and decided to rationalize the Afghan National Police chain of command to facilitate supervision of mid-level officials' performance and probity. -- The Independent Directorate for Local Governance has introduced personal probity and technical competence as criteria for the selection of governors. -- In 2007, the Supreme Court adopted the Regulation of Judicial Conduct, the country's first modern code of ethics. WOOD