FISCAL TRANSPARENCY IN SURINAME

UNCLAS PARAMARIBO 000099 SIPDIS SIPDIS EEB/IFD/OMA FOR ANDREW SNOW AND RICHARD FIGUEROA, WHA/EPSC FOR LISA KUBISKE, WHA/CAR FOR JACKIE ROSHOLT E.O. 12958: N/A TAGS: EAID ECON PREL NS SUBJECT: FISCAL TRANSPARENCY IN SURINAME REF: SECSTATE 16737 ¶1. (U) The following response is keyed to reftel; government fiscal matters are largely transparent in Suriname. Q: Does Suriname receive foreign assistance from the United States? A: Yes. Q: Are there relevant laws and regulations in Suriname governing the public disclosure of revenues and expenditures in national budgets? A: Yes. Q: Adequacy of those laws and regulations, and the extent to which implemented? A: The laws are adequate, and the budget is printed annually and available to the public. A separate volume on final expenditures is also printed annually, and sent immediately to stakeholders. Q: Programs and activities sponsored by the USG to promote accurate disclosure of revenues and expenditures in the national budget, and the results of those programs and activities. A: (See below.) Also, at regular intervals, the GOS Ministry of Planning requests information from donors regarding the programs and activities undertaken or planned. These programs are noted in the Government,s annual budget presentations to the Parliament. Additional questions: Q: Is the host country,s budget made public? A: Yes. Q: If so, through what medium (e.g., publication, internet)? A: The budget is discussed and debated openly by government officials and members in parliament in publicly held parliamentary sessions attended by media and members of the general public. Subsequent to final approval, the Government publishes the final budget. Copies may be purchased from the Ministry of Finance. Q: Are all revenues and expenditures included in the publicly-available budget? A: No. As in most countries, the budget for certain activities (e.g., intelligence activities and some military spending) are not made public. Q: If the revenues and expenditures are available in a publicly-available budget, how meaningful and accurate is the information? A: The information is accurate; however, budgets are sometimes not sufficient to meet the needs of the ministries to which the budget is allocated. Thus, the Government of Suriname relies on the international donor community to supplement, and in some cases assume responsibility for, some 
services and development. In addition, expenditures do not always match targets. However, after spending for the year is complete, the state Accounting Council complies and publishes a report on actual expenditures the following year. Q: If a country is weak on fiscal transparency is it due to capacity or lack of will? A: Suriname suffers from a lack of trained professionals. The financial investigative unit remains understaffed; however, the government has demonstrated a willingness to promulgate new laws that address money laundering, fraud, corruption, and assets forfeiture, and the Ministry of Justice and Police has demonstrated a commitment to investigate and prosecute these types of cases, even when they involve government officials. Q: Are there any USG programs to strengthen the host country,s capacity to develop sound fiscal policies and that support transparency and good governance? A: USG assistance programs promote good governance by focusing on transparency and accountability in bilateral projects, especially in law enforcement and justice, as well as in military assistance and training. Military assistance programs and INL-funded law enforcement support require "end-use monitoring." The Surinamese institutions receiving USG assistance through these mechanisms are generally compliant with these "end-use" requirements. A, cont'd: Suriname is developing modern laws to address money laundering, assets forfeiture, fraud, and corruption, and has demonstrated a willingness to address these issues through the legal system. In 2007, cases proceeded against former and current government officials, with one case resulting in fines and imprisonment. In addition, the former Minister of Transportation, Communication, and Tourism was forced to resign in 2007 over allegations that official ministry funds were used to organize her birthday party. No prosecution has resulted from that case. Q: Are other donor countries or multilateral institutions (e.g. the EU or World Bank) providing assistance in these areas? A: The Government of the Netherlands historically is the largest donor in Suriname. A large portion of current Dutch funding is targeted at institutional development and capacity-building. The IDB has just announced the second phase of its decentralization program, designed to develop institutional capacity at the district and local levels of government. Q: Has the country volunteered for the IMF to report on the country,s compliance with standards and codes covering fiscal transparency? A: No report is available on the IMF web site at www.imf.org/external/np/rosc/rosc.asp. SCHREIBER HUGHES