JORDANIAN RED CRESCENT ECLIPSED BY ALLEGATIONS OF

UNCLAS AMMAN 000526 SIPDIS, SENSITIVE DEPARTMENT FOR PRM/ANE, GENEVA FOR RMA E.O. 12958: N/A TAGS: PREF EAID UNHCR IZ JO SUBJECT: JORDANIAN RED CRESCENT ECLIPSED BY ALLEGATIONS OF CORRUPTION REF: AMMAN 0410 ¶1. (SBU) Summary: The NGO International Relief and Development (IRD) has told PRM that it intends to sever its relationship with the Jordanian Red Crescent (JRC) over its belief that the organization was deliberately double-billing donors for services. As part of an independent inquiry, Post has determined that JRC requested and received funding for operations in the Marka and Hashimi JRC clinics from IRD. Additionally, JRC requested and received funding from the German and French Red Cross for the same clinics. German and French Red Cross officials in Jordan confirmed that their organizations, unaware of the IRD funds, funded 100 percent of the Marka and Hashimi clinic operations at JRCQs request. Post recommends that USG partners review all past transactions with JRC to ensure the proper use of USG funds. Post further recommends that no PRM partner enter into a fiscal agreement with JRC, at least until the allegations of mismanagement are clarified. End Summary. ¶2. (SBU) On January 8, 2009, RefCoord met with Nick Stevens of International Relief and Development (IRD)(protect) as part of regular monitoring and evaluation of the PRM-funded IRD primary health care projects. JRC plays a key role in the project, managing and staffing six health centers in which the IRD project takes place. Stevens said that he had evidence that JRC was billing IRD for operations in the Marka and Hashimi JRC clinics, which were already paid for by other donors and would therefore limit IRD dealings with JRC in the future. ¶3. (SBU) On February 3, and 4 respectively, Post spoke with representatives of the French and German Red Cross in Jordan. The Red Cross organizations confirmed that JRC requested and received funding from their organizations for operations in the Hashimi and Marka clinics. When they learned that IRD funded the same activities, Both the French and German Red Cross approached IFRC with the irregularities. ¶4. (SBU) According to Robert Guzman of the French Red Cross, IFRC Program Coordinator Andreas Fabricius, responsible for monitoring the JRC refugee program for IFRC, brought these irregularities to the attention of IFRC leadership in January 2009. Upon learning of the irregularities, IFRC Director Ahmed Gizo formally requested an explanation of the fiscal aberrations from JRC President Hadid in January 2009. At the date of this report, JRC had not responded to the request. President of JRC, Dr. Hadid expressed to Gizo his anger that IFRC had made public accusations against JRC. (Note: In previous conversations with RefCoord, Gizo had expressed concerns about JRC management controls and the professionalism of its administrative staff, but he did not mention evidence of wrongdoing. End note.) IFRC management asked Fabricius, who uncovered the possible wrongdoing to relocate to Syria (Note: Fabricius left Amman for reassignment to Syria on February 4, 2009. End note). Guzman saw Fabricius' reassignment as an attempt to placate Dr. Hadid of JRC. Post was unsuccessful in our attempts to contact Fabricius to confirm his involvement. ¶5. (SBU) Recommendations: Given the multiple, credible sources on alleged JRC wrongdoing and IFRC-Jordan apparent knowledge of JRC management issues, RefCoord recommends that IRD headquarters review all financial transactions with JRC and document all payments made in fiscal year 2008 to JRC for services in the Marka and Hashimi clinics. IFRC should be asked to account for any discrepancy found in the way USG funds were allocated to JCS supported clinics. IFRC should present the result of any internal audit through IFRC headquarters to RMA Geneva. Visit AmmanQs Classified Web Site at http://www.state.sgov.gov/p/nea/amman BEECROFT