Identifier
Created
Classification
Origin
09MASERU409
2009-11-18 06:57:00
UNCLASSIFIED
Embassy Maseru
Cable title:  

LESOTHO HAS THE "BEST PERFORMING OTA PROJECT IN THE WORLD"

Tags:  PREL TRSY LT 
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VZCZCXRO1113
RR RUEHMR
DE RUEHMR #0409 3220657
ZNR UUUUU ZZH
R 180657Z NOV 09
FM AMEMBASSY MASERU
TO RUEHC/SECSTATE WASHDC 4481
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHMR/AMEMBASSY MASERU 4915
UNCLAS MASERU 000409 

SIPDIS

DEPARTMENT FOR AF/S AND INR; TREASURY FOR DIRECTOR OF OTA, MIKE
RUFFNER AND BILL REMINGTON

E.O. 12958: N/A
TAGS: PREL TRSY LT
SUBJECT: LESOTHO HAS THE "BEST PERFORMING OTA PROJECT IN THE WORLD"

-------
Summary
-------

UNCLAS MASERU 000409

SIPDIS

DEPARTMENT FOR AF/S AND INR; TREASURY FOR DIRECTOR OF OTA, MIKE
RUFFNER AND BILL REMINGTON

E.O. 12958: N/A
TAGS: PREL TRSY LT
SUBJECT: LESOTHO HAS THE "BEST PERFORMING OTA PROJECT IN THE WORLD"

--------------
Summary
--------------


1. Ambassador Rob Nolan and Mike Ruffner, the visiting director
of the Department of Treasury's Office of Technical Assistance
(OTA),met with the Minister of Finance on Friday, November 13.
The discussion focused on the various projects which the OTA has
undertaken in the Kingdom. OTA is very pleased with its Lesotho
projects, and the director's visit to Lesotho came because he
wanted to see for himself the Lesotho projects, which his
Washington staff describes as the "best performing project in
the entire world."

-------------- --------------
Minister explains delays, reaffirms commitment to Treasury's work
-------------- --------------


2. Dr. Timothy Thahane, Lesotho's Minister of Finance, indicated
in the meeting that he has made a personal commitment to get the
public finances of Lesotho sound and strong before he leaves
office. He repeatedly expressed his appreciation to Treasury
for all the support they have given the Government of Lesotho.
He also mentioned that the next budget, which will be presented
to the public in April 2010, will prioritize strengthening the
financial sector. To that end, he expressed a strong desire
that current and future OTA projects focus on building capacity;
training the local staff to take over initiatives; and leaving
behind an infrastructure that is sustainable once OTA advisors
have departed. Thahane reassured Director Ruffner that his
concerns about delays in the development of the country's
Financial Investigative Unit (FIU) are unnecessary. Things
might take a little longer in Lesotho, he said, but they have to
follow a certain procedure, and starting things off correctly
means that there should be no problems once the FIU becomes
operational.

--------------
Lesotho is a good partner for OTA
--------------


3. OTA has several projects on-going in Lesotho. One of the
unique features of OTA's involvement in Lesotho has been the
source of funding. Current OTA projects in Lesotho are funding
by the United Kingdom's Department for International Development
(DFID). Projects include an anti-money laundering system, which
resulted in a comprehensive anti-money laundering act which
established the FIU; engagement with the Debt Management working
group and development of a debt management manual; and an audit
management process, including development of standard operating
procedures for audits. As evidenced by the anti-money
laundering law and the concrete products which have been
produced, all these programs have been highly successful.


4. In addition, it is likely that an OTA budget advisor will be
posted to Lesotho in early 2010 to provide "budget and financial
accountability technical advisory services" to the Minister of
Finance, as well as the Ministry of Finance's budget controller
and staff. The budget advisor would work in the areas of budget
analysis and development, budget execution monitoring and
evaluation, capacity building of the department of budget, cash
management training, and other areas that the Ministry
identifies. The advisor would be funded by OTA, under the
oversight of the U.S. Ambassador, and under the supervision of
the OTA associate director for budget and financial
accountability.
--------------
Comment
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5. Post is extremely grateful to OTA for the work that they have
done to strengthen the Lesotho Revenue Authority. We support
the Minister's priority of strengthening the financial sector
and encourage a more transparent budget and taxation process.
We also welcome the addition of an OTA budget advisor to our
growing Mission team. Lesotho is a country of relatively low
levels of corruption and very low levels of revenue collection.
We hope that OTA's assistance will help to increase levels of
revenue collection while at the same time, creating a more
transparent system which will make it even more difficult for
unscrupulous individuals to take advantage of this economically
challenged nation.

NOLAN