MCC MEETING ON PROGRESS OF THRESHOLD COUNTRY PLAN IN

UNCLAS KAMPALA 000610 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PHUM KDEM UG SUBJECT: MCC MEETING ON PROGRESS OF THRESHOLD COUNTRY PLAN IN UGANDA ¶1. (U) Summary: Millennium Challenge Corporation (MCC) Vice President Maureen Harrington told senior Ugandan officials on April 17 that progress on the Threshold Country Plan (TCP),improved indicators for political rights, and stabilization of anti-corruption indicators would be needed for Uganda to be eligible for MCC compact status. End Summary. ¶2. (U) On April 17, Maureen Harrington, Millennium Challenge Corporation (MCC) Vice President for Policy and International Relations, the USAID Mission Director, the USAID TCP Managers, and the Department of Justice Advisors met with the Government of Uganda's State Ministers for Finance and Ethics and Integrity and the heads of Uganda's accountability agencies implementing the TCP to discuss progress and issues related to TCP implementation. ¶3. (U) The State Minister for Ethics and Integrity, Dr. Nsaba Buturo, expressed the Government's appreciation for the MCC program and that it was happy to be a partner with the U.S. Government in the fight against corruption. The Government briefing highlighted several accomplishments made under the TCP since its beginning in September 2007. These included the USG's purchase of much needed equipment, training for investigators and prosecutors, the development of an information education and communication strategy on anti-corruption, and the contracting of 17 audits of public procurement in government ministries or local governments. The Minster of State for Finance, Fred Jachan Omach, informed VP Harrington that the Government has included its USD 2.2 million contribution to the TCP in the July 2008 budget. ¶4. (U) Harrington was impressed by the Government's progress, and apparent ownership of TCP by the anti-corruption agencies. With regard to possible Uganda eligibility for an MCC Compact, she noted that Uganda performed well on the indicators this year but has not performed consistently well on the control of corruption indicator. She told the GOU officials at the meeting that she felt the MCC board would look for consistent performance on the control of corruption indicator. She also stated that the MCC board was looking closely at Uganda's indicator on political rights. Harrington stated that both of these indicators are important factors taken into consideration by the MCC Board in determining compact eligibility. In addition, other Government efforts to fight corruption outside of the TCP, such as following through on reports from investigations on the misappropriation of the Global Fund, would be necessary. ¶5. (SBU) Comment: Those responsible in the Government for implementing Uganda's MCC TCP have demonstrated ownership of the program and have eagerly begun implementing Program-supported activities. If this trend continues, we expect that the program can achieve its objective of building institutional capacity to detect and prosecute those involved in corruption in public procurement. We hope that the Ministers relay VP Harrington's warning that the MCC board would be scrutinizing the willingness of the GOU to address major corruptions scandals involving high level Government officials and political rights issues. In meetings with GOU counterparts, Post will continue to link these indicators and the Government's own financial commitment to the possibility of Ugandan obtaining an MCC Compact. BROWNING