DCM RAISES MISSING USDA PROGRAM FUNDS WITH AG MINISTER

UNCLAS GUATEMALA 000015

SENSITIVE
SIPDIS
C O R R E C T E D COPY CAPTION
USDA FOR ASSOCIATE ADMINISTRATOR BREWER AND DEPUTY ADMINISTRATOR SHEIKH

E.O. 12958: N/A
TAGS: EAGR PREL GT
SUBJECT: DCM RAISES MISSING USDA PROGRAM FUNDS WITH AG MINISTER


1. (SBU) SUMMARY: Agriculture Minister Mario Aldana admitted to
DCM January 12 that his ministry had mistakenly overlooked
deadlines in the execution of USDA's Food for Progress program
funds approximating $4.1 million. He committed to providing
Ambassador McFarland a letter and plan of action indicating these
projects would be resurrected as quickly as possible. DCM made
it clear to Aldana that the United States wished to continue as a
strong partner with the Government of Guatemala on food security
issues, but this could only happen if the USG could be assured
funds would be used in an appropriate manner. Aldana told DCM he
would seek to accompany either Vice President Espada, or President
Colom, during their upcoming visits to Washington, and DCM
encouraged him to seek appointments with his USDA counterparts, and
to personally assure them he will account for the missing funds and
get the projects back on track. End Summary.




2. (SBU) DCM, accompanied by Foreign Agricultural Service (FAS)
Attache Eilks and FAS Agricultural Specialist Tay, called on
Minister of Agriculture Mario Aldana and his team of experts
January 12 to discuss several USDA funded projects that were to be
executed by the Ministry of Agriculture (MAGA). MAGA has received
the equivalent of $15 million to support various Food for Progress
(FFP) projects to include institutional training, institutional
support and agricultural development activities. In exchange for
the funds, the GoG of agreed to execute the projects on time and
fully account for the money spent. Post became aware that a number
of the projects had been halted since May 2009. Specifically,
$4.1 million that had been provided through FFP, had not been
executed. Further, the funds did not appear to be accounted for
within the Ministry. Ministry officials offered a number of
excuses for the lack of execution of the projects when the issues
was raised.




3. (SBU) Aldana agreed that USDA programs were extremely important
particularly since experts predicted greater food security and
environmental challenges in the future. He acknowledged that
internal budgetary issues, coupled with poor planning within MAGA,
had brought us to the current situation. DCM and FAS Specialist
Tay accepted the Minister's apology, but noted it was more
important to get the money back and get the programs up and running
again. Foreign Agriculture Service Associate Administrator John
Brewer and Deputy Administrator Pat Sheikh raised the issue
December 9, 2009, in frank terms with Aldana, but while he claimed
to understand the problem then he made no apparent efforts to
resolve it.




4. (SBU) DCM suggested MAGA draft a letter from the Minister to the
Ambassador specifically outlining how MAGA plans to reactivate the
programs that were halted. DCM assured Aldana that the USG desired
to be a strong partner with the GoG as it faces serious food
security challenges. In addition, he reminded the Minister that
USG agriculture programs in Guatemala had a historically been
successful over the years, and suggested this latest problem should
not be allowed to jeopardize that legacy. Aldana agreed and asked
our Agriculture Specialist to work with his team on the letter and
the action plan. In a brief aside, DCM again pressed Aldana to
make good on his commitment to get the programs up and running
before President Colom, Vice President Espada, and Ambassador
McFarland leave for upcoming visits to the U.S. Aldana said he
would and added he would seek to accompany either the President or
the Vice President in order to meet with USDA officials.




5. (SBU) COMMENT: We do not believe Aldana stole the money. Many
ministries, including MAGA, have seen their budgets drastically
reduced. Couple that with bureaucratic inefficiencies, and the
creation of an almost parallel system to manage the First Lady's
Social Cohesion program, and one could see how mistakes could be
made. The money was likely moved to a general government account,
possibly to cover expenses elsewhere, and the FFP programs were put
on hold. Aldana recognizes that Guatemala's dire food security
situation, and need for even greater support from the international
community, means the GoG can ill afford to jeopardize its
relationship with donors by mishandling international aid. FAS
will follow up with the Minister to make sure he fulfills his
commitment. End Comment.
MCFARLAND