Identifier
Created
Classification
Origin
08NDJAMENA509
2008-10-31 11:30:00
UNCLASSIFIED
Embassy Ndjamena
Cable title:  

IMF DELEGATION TO VISIT CHAD AS "STAFF MONITORED

Tags:  ECON EFIN PREL PGOV IMF IBRD MASS US CD 
pdf how-to read a cable
VZCZCXRO0018
OO RUEHGI RUEHMA RUEHROV
DE RUEHNJ #0509 3051130
ZNR UUUUU ZZH
O 311130Z OCT 08
FM AMEMBASSY NDJAMENA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6554
INFO RUCNFUR/DARFUR COLLECTIVE PRIORITY
RUEHTRO/AMEMBASSY TRIPOLI PRIORITY 0497
UNCLAS NDJAMENA 000509 

SIPDIS

E.O. 12958: N/A
TAGS: ECON EFIN PREL PGOV IMF IBRD MASS US CD
SUBJECT: IMF DELEGATION TO VISIT CHAD AS "STAFF MONITORED
PROGRAM" FOR 3RD AND 4TH QTR 2008 FOUNDERS

REF: A. A) NDJAMENA 493

B. B) NDJAMENA 431

SENSITIVE BUT UNCLASSIFIED

UNCLAS NDJAMENA 000509

SIPDIS

E.O. 12958: N/A
TAGS: ECON EFIN PREL PGOV IMF IBRD MASS US CD
SUBJECT: IMF DELEGATION TO VISIT CHAD AS "STAFF MONITORED
PROGRAM" FOR 3RD AND 4TH QTR 2008 FOUNDERS

REF: A. A) NDJAMENA 493

B. B) NDJAMENA 431

SENSITIVE BUT UNCLASSIFIED


1. (SBU) IMF RESIDENT REPRESENTATIVE JOSEPH KARANGWA TOLD
AMBASSADOR OCTOBER 30 THAT THE IFI WILL SEND AN
"OVERSIGHT DELEGATION" TO CHAD EARLY NEXT MONTH EVEN THOUGH
THE FUND'S AMBITIOUS PLAN TO PUT CHAD ON A "STAFF MANAGED
PROGRAM" FOR THE SECOND HALF OF 2008 HAS FAILED. THE
REASON FOR THE FAILURE WAS POOR GOC PERFORMANCE WHICH DID
NOT PERMIT THE FUND TO CERTIFY COMPLIANCE WITH THE MINIMAL
BUDGETARY DISCIPLINE REQUIREMENTS IT HAD AGREED WITH CHAD
IN JULY 2008.


2. (SBU) KARANGWA SAID THAT CHAD'S GENERALLY OPAQUE
"EXTRAORDINARY SECURITY EXPENDITURES" ACCOUNT, WHICH THE
GOC ESTIMATED LAST JULY AT FCFA 90 BILLION FOR THE
AUGUST-DEC 2008 TIME PERIOD, IN FACT WILL BE NEARLY DOUBLE
THAT SUM. THIS WOULD MAKE IT IMPOSSIBLE FOR THE "STAFF
MONITORED PROGRAM" TO CONTINUE. THE IMF HOPES TO OVERSEE
CHAD'S PERFORMANCE FOR THE REMAINDER OF 2008 AND WORK WITH
CHAD ON ITS 2009 BUDGET, IN THE HOPE THAT CHADIAN
PERFORMANCE CAN IMPROVE ENOUGH TO MERIT A MORE NORMAL
RELATIONSHIP WITH THE FUND STARTING IN 2009.


3. (SBU) KARANGWA STRESSED THAT THE IMF HAS TRIED VERY
HARD TO REESTABLISH A NORMAL WORKING RELATIONSHIP WITH THE
GOC, BUT THAT CHAD'S PERFORMANCE HAS BEEN AS DISMAL IN 2008
AS BEFORE. THE "EXTRAORDINARY SECURITY EXPENDITURES" HAVE
BEEN THE MAIN VILLAIN, BUT CHAD CONTINUES MORE GENERALLY TO
RESORT TO "EXTRA-BUDGETARY SPENDING" ON DUBIOUS,
ILL-PREPARED AND ILL-COORDINATED PROJECTS; DECISION-MAKING
ON SPENDING HAS OFTEN BEEN SHORT-CIRCUITED BY PRESIDENTIAL
FIAT; "DIRECT CONTRACTING" HAS RESULTED IN ABUSES OF ALL
SORTS; AND THE INFRASTRUCTURE MINISTRY WIELDS TOO MUCH
AUTHORITY OVER AREAS IN WHICH IT LACKS EXPERTISE AND
OVERSIGHT. KARANGWA SAID THAT THE IMF WOULD MAKE ANOTHER
EFFORT TO REESTABLISH A GOOD WORKING RELATIONSHIP WITH
CHAD, BUT THAT SOME CONCRETE PROGRESS ON THE CHADIAN SIDE
WOULD BE ESSENTIAL FOR SUCCESS IN THIS ENDEAVOR.


4. (SBU) KARANGWA SAID THAT THE IMF MADE NO JUDGMENTS ON
WHAT KIND OF MILITARY SPENDING WAS APPROPRIATE FOR CHAD OR
EVEN HOW MUCH FUTURE GOC MILITARY SPENDING SHOULD BE. BUT
FUTURE MILITARY PURCHASES, SUCH AS THAT OF STRATEGIC AIR
PURCHASES LIKE THE U.S. C-130JS, SHOULD BE PART OF THE
GOC'S BUDGET PLANNING AND SUBJECT TO BUDGET DISCIPLINE.

--------------
COMMENT
--------------


5. (SBU) THE IMF HAS BEEN A VERY GOOD FRIEND TO CHAD,
DEMONSTRATING REAL UNDERSTANDING REGARDING CHAD'S CRITICAL
CURRENT SITUATION AND TROUBLED HISTORY, THE MILITARY
THREATS IT FACES, AND THE NEED FOR EXTRAORDINARY SPENDING
ON SECURITY AND DEFENSE. BUT WE WONDER IF THE FUND CAN
CONTINUE TO EXPEND EFFORTS AND RESOURCES ON CHAD ABSENT A
SERIOUS AND SUSTAINED GOC COMMITMENT TO IMPROVING ITS
BUDGETARY PERFORMANCE.
NIGRO