CATHOLIC RELIEF SERVICES SHUTS DOWN

C O N F I D E N T I A L ASMARA 000446 SIPDIS DEPT FOR AF/E AND DRL GEORGIANNA PLATT FOR USAID LONDON AND PARIS FOR AFRICA WATCHERS E.O. 12958: DECL: 12/30/2019 TAGS: EAID PREL PGOV ER SUBJECT: CATHOLIC RELIEF SERVICES SHUTS DOWN REF: ASMARA 437 Classified By: Ambassador Ronald K. McMullen for reason 1.4(d). ¶1. (C) Catholic Relief Services (CRS) will close its doors by February 2010, reducing to three the total number of international NGOs in Eritrea. The Ministry of Labor and Human Welfare (MLHW),which oversees NGO operations, recently mandated CRS to end its operations because it could not "meet the standards of the NGO proclamation," according to Mr. Aynalem, who has been working at CRS for seven years and is one of three staff members left at the office. The standard in question is the minimum operating budget of two million USD (reftel). (Note: Although Lutheran World Federation is also believed to be in danger of closing for the same reason, the office has not admitted to receiving a letter mandating them to do so. End Note). ¶2. (C) The CRS attempted to intervene with the MLHW decision on several occasions, Mr. Aynalem told Poloff. The CRS Regional VP of Overseas Operations sent a letter to the MLHW that went unresponded. The president of CRS sent a request to the Eritrean government (GSE) as well, requesting the office not be forced to shut down. The efforts proved fruitless, however, and CRS is simply biding its time. ¶3. (C) The staff has been reduced to a program officer (Mr. Aynalem),the finance manager, and a driver. The MLHW is in the process of collecting CRS's remaining property: vehicles, furniture, computers, and other office equipment. Aynalem told Poloff the office is awaiting the arrival of a representative from the regional office who will assist with procedures for the final paperwork. He expects this process to be completed by February 2010. Aynalem, who has been with CRS for seven years, told Poloff he is unsure why the GSE chases out the NGOs, since it is the people who suffer as a result. Mr. Aynalem mused, however, that CRS could return if the office could meet the budget requirements. However, this would require the MLHW to specifically allow the NGO to start up operations once more. ¶4. (C) COMMENT: It is unlikely the MLHW will grant permission for CRS to open its doors once more, even if the budget requirement is met. The CRS regional office must be aware of this fact, hence the numerous attempts it made to keep the office from closing down. Nonetheless, without international donors to fund its operations, future prospects for CRS are bleak. McMullen