UNRWA'S SYRIA CHIEF FRETS ABOUT FINANCES

C O N F I D E N T I A L DAMASCUS 000050

SIPDIS

LONDON FOR LORD, PARIS FOR NOBLES

E.O. 12958: DECL: 01/14/2020
TAGS: KDEM KPAL SOCI PREL PREF PHUM SY
SUBJECT: UNRWA'S SYRIA CHIEF FRETS ABOUT FINANCES

Classified By: CDA Charles Hunter for Reasons 1.4 (b) and (d).


1. (C) SUMMARY: United Nations Relief and Works Agency's
(UNRWA) Syria Country Representative Roger Hearn told
Staffdel Marcus January 9 that his organization's "surreal"
financial situation is so dire, due mostly to donor fatigue,
that it requires immediate attention and may entail "a
complete reconfiguration of the way UNRWA works in Syria."
Responding to the first of two perennial congressional
concerns regarding UNRWA, Hearn said his organization was
looking into whether UNRWA could use a bank other than the
Commercial Bank of Syria, designated by the U.S. Treasury
Department as a financial institution of "primary money
laundering concern," to pay its employees. He also noted
that he hoped to direct a curriculum review effort at UNRWA
schools to ensure textbooks are not promoting extremism. END
SUMMARY.

"SURREAL" FINANCIAL SITUATION


2. (C) UNRWA Country Representative Roger Hearn told us
January 9 he inherited a severe crisis when he took over
UNRWA's Syria operations in October. Hearn said without
significant financial reform, "the possibility exists of a
complete reconfiguration this year of the way UNRWA works in
Syria." Hearn described the funding problems of UNRWA's
Syria office as "surreal," noting that even if he fired half
the staff the organization would only incur additional debt
due to indemnities.


3. (C) UNRWA's biggest challenge at the moment is donor
fatigue as the organization marks 60 years of serving
Palestinian refugees in Syria, NOW numbering over 470,000
according to official estimates. In addition, Hearn said
donors are also spreading their money to other worthy refugee
causes such as assistance to Iraqis. The country director
stated that his initial efforts at financial reform generated
some "hate mail," from both Syrians and people within the
organization, charging him with abandoning the needs of
Palestinian refugees.


4. (C) Despite UNRWA's significant financial challenges,
Hearn remained optimistic the organization's efforts will
continue in Syria partly because "the Syrians won't let UNRWA
in Syria die; it's too important to them politically."
However, it was possible his office would have to scale back
some efforts unless a long-term solution is found.


5. (C) Responding to the first of two concerns on Staffdel
Marcus' agenda, Hearn relayed that upon his arrival he had
read a note from the organization's legal counsel regarding
UNRWA's use of the Commercial Bank of Syria, designated by
the U.S. Treasury Department as a financial institution of
"primary money laundering concern" under the USA Patriot Act,
to pay its local employees. UNRWA chose the bank because it
has branches and ATMs in cities across the country. UNRWA's
lawyers are looking into whether an alternate bank could be
used which also has branches in several major Syrian cities,
and that Beirut-based Bank Audi is one possibility. Hearn
pledged to keep the Embassy apprised of progress on this
subject.


6. (C) Turning to his mission's substantive work, Hearn
related that one of his goals this year is to direct a
curriculum review at schools run by UNRWA in Palestinian
camps. While he stressed no evidence existed that
objectionable material was being used at the schools, he said
the move was wise "to make sure we are not educating a
generation of extremists." Hearn said he expected this
effort to commence shortly.




HUNTER