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