VZCZCXRO3486
PP RUEHPW
DE RUEHBUL #3089/01 3360541
ZNR UUUUU ZZH
P 010541Z DEC 08
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 6264
INFO RUCNAFG/AFGHANISTAN COLLECTIVE PRIORITY
RUEKJCS/OSD WASHINGTON DC PRIORITY
RUEKJCS/JOINT STAFF WASHINGTON DC PRIORITY
RHMFIUU/HQ USCENTCOM MACDILL AFB FL PRIORITY
RUEAIIA/CIA WASHINGTON DC PRIORITY
RHEFDIA/DIA WASHINGTON DC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC

UNCLAS SECTION 01 OF 03 KABUL 003089 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR SCA/FO, SCA/A, S/CRS, INL/AP 
STATE PASS TO USAID FOR AID/ANE, AID/DCHA/DG 
NSC FOR JWOOD 
OSD FOR USDP EDELMAN AND WILKES 
CENTCOM FOR CG CJTF-101, POLAD, JICENT 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PINS AFIN AF
SUBJECT:  ATMAR LEADS DONORS TO FUNDING DECISIONS ON ANP 
 
KABUL 00003089  001.2 OF 003 
 
 
¶1. (SBU) Summary.  On November 18, in Minister Atmar's first LOTFA 
Steering Committee meeting, he steered the group to decisions to 
fund an increase to ANP salaries, initiate a pilot project to test 
incentive pay in targeted medium- and high-threat ANP districts, 
reach a settlement on how to handle deceased and disabled ANP whose 
pensions continue to be paid as salaries by LOTFA, and examine how 
to handle the LOTFA food allowance that is due to expire during the 
next GIRoA fiscal year.  In conducting the meeting, Atmar was 
delicate when appropriate, but more decisive when it became 
necessary.  In all cases, his priorities aligned with those of the 
U.S., a positive sign for future cooperation.  End summary. 
 
---------- 
Background 
---------- 
 
¶2. (U) The Law and Order Trust Fund for Afghanistan (LOTFA) was 
created in May 2002 as a means of collecting contributions from 
international donors to pay police salaries and other remuneration. 
It stands apart from the GIRoA central budget, but donors are in the 
process of coordinating future funding with the Ministry of Finance 
(MOF) so that it can incorporate donor-sponsored programs into its 
budget forecasting for out-years.  There are two primary LOTFA 
bodies, the Steering Committee (SC) chaired by the Minister of 
Interior and composed of donors and police policy-focused 
international organizations such as the European Police Mission 
(EUPOL) and the United Nations Assistance Mission in Afghanistan 
(UNAMA), and a LOTFA Donors Working Group for informal coordination 
and preparation for SC meetings.  The last SC meeting was in 
February 2008. 
 
------------------ 
Atmar Takes Charge 
------------------ 
 
¶3. (U) MOI Minister Mohammad Hanif Atmar co-chaired the LOTFA SC 
meeting with UNAMA's Deputy Special Representative Bo Asplund. 
After noting that he "suffers from a crisis of expectations" due to 
the high hopes that others have placed on him, Atmar assured donors 
that the change in administration at MOI would not only honor 
previous consensus agreements but also accelerate reforms.  The 
first challenge would be fighting corruption and establishing a 
system of transparency and accountability, one that includes 
merit-based appointments. 
 
¶4. (SBU) The most awkward (and enlightening) moment came right in 
the beginning when Atmar began to review the Minutes of the last 
Steering Committee meeting.  He asked Deputy Minister Mohammad 
Haider Basir, a holdover from the Zarar era, to provide a status 
report on implementation of rank reform, a report requested of MOI 
at the February meeting.  Basir admitted after some hesitation that 
rank reform had gone nowhere because officers wouldn't accept it. 
Atmar then clarified that 4,000 officers had in fact accepted NCO 
rank positions, and 248 were separated.  (Note.  Nonetheless, all 
rank reformed ANP officers selected for retirement or separation 
remain on the payroll.  End note).  CSTC-A MG Robert Cone said that, 
frankly, the rank reform timeline was embarrassing.  The process had 
gone much too slowly, and it needed to be concluded as soon as 
possible.  Atmar said he would consult with CSTC-A and EUPOL and get 
back to the group. 
 
------------------- 
ANP Salary Increase 
------------------- 
 
¶5. (U) The first issue for discussion and decision was a proposal to 
increase ANP salaries by $20 to match an ANA increase.  The LOTFA 
Donors Working Group had discussed the issue at length without 
coming to a conclusion.  Deputy Minister of Finance Waheedullah 
Shahrani offered that the Cabinet had already agreed to the salary 
increase with the understanding that the USG would fund the first 
year increase in addition to its other LOTFA commitments.  Atmar 
acknowledged the concerns of some LOTFA members regarding the 
long-term sustainability of increased ANP costs but strongly stated 
that security had to be the number one priority for the GIRoA 
because without it, "there would be no state to sustain."  Invoking 
the London Compact, he said that the State would not be able to 
support itself for many years to come, and suggested sustainability 
 
KABUL 00003089  002 OF 003 
 
 
must take place at a more strategic level.  He said that pay parity 
with the ANA was absolutely essential and that the ANP should not be 
singled out to make a point on fiscal sustainability.  Ultimately, 
the decision was made to approve the $20 salary increase effective 
the first of next month. 
 
------------- 
Incentive Pay 
------------- 
 
¶6. (U) The next proposal suggested creation of a 6-month pilot 
program to provide incentive pay to ANP who serve in medium- and 
high-threat FDD districts and meet other specific criteria.  This 
initiative parallels the ANA's $2 per day combat pay allowance and 
is another means of maintaining pay parity between the two.  The 
pilot program hopes to facilitate recruitment, assist with 
retention, reduce absenteeism, encourage deployment of recruits 
nationally, and assist in completing the process of rank reform, 
while at the same time ensuring that sufficient controls are in 
place to prevent corruption and diversion of ANP remuneration. 
However, only ANP who meet all of the following criteria would 
qualify for incentive pay:  1) physically working in designated 
medium- and high-threat districts (as identified by Voter 
Registration Threat Assessment), 2) must be rank reformed and 
serving in Tashkil-authorized positions, 3) must have ID badges and 
be enrolled in the Electronic Payroll System (EPS), and 4) must have 
completed FDD training.  At the moment, districts in 13 high-threat 
provinces (most in the south and east) and 4 provinces considered 
medium-threat would qualify for this benefit.  The estimated cost 
for the 6-month pilot program is $6 to $8 million.  The U.S. 
(through CSTC-A) offered to cover costs for the pilot program, but 
still asked for International Community (IC) contributions. 
 
¶7. (U) Minister Atmar stated that both the MOI and the Cabinet fully 
supported the proposal and appreciated the offer of U.S. funding. 
After a short conversation the proposal was approved. 
 
----------- 
Martyrs Pay 
----------- 
 
¶8. (U) Under the current 1387 Tashkil and in previous years, ANP 
killed or permanently disabled in the line of duty remained on the 
payroll and their families accrued the benefit under a specific 
Presidential decree.  Atmar's Martyrs Salary Regularization 
proposal, as approved by the Cabinet, would essentially move those 
costs out of LOTFA and into the central government's pension plan, 
while freeing up the 3,000 slots held by deceased ANP to bring in 
new recruits.  The Minister made it clear that this would not 
address the problem of "ghost" police who remain on the rolls but do 
no work, which he said was his responsibility to ferret out and fix. 
 Two complications are that the number of killed in action continues 
to grow, and the number of permanently disabled is unknown. 
 
¶9. (U) After further discussion and clarification of the various 
elements of the proposal, the group decided that LOTFA would pay the 
"salaries" of deceased ANP, as calculated at the end of the current 
Tashkil, through the next fiscal year ending March 2010, after which 
the GIRoA would pick up those costs under its pension scheme.  The 
estimated cost of covering "martyrs pay" for 3,000 deceased ANP for 
one year is $5.2 million.  Unfortunately, by March 2009 that number 
will be significantly higher.  In addition, over the last 3 months 
of the current fiscal year the MOI will review those ANP considered 
wounded or disabled, and those found to be unfit to serve will be 
offered pensions paid for by the MOF in the 1388 Tashkil. 
 
-------------- 
Food Allowance 
-------------- 
 
¶10. (U) Under LOTFA, each ANP gets a food allowance of 100 Afghanis 
per day ($2.00), but the LOTFA Project Document stipulates that the 
allowance should be phased out during Tashkil fiscal year 1388.  MOI 
argued that with the increase in the cost of living, especially 
regarding basic food commodities, the current allowance is not 
sufficient to feed the average ANP and does not provide the required 
caloric intake.  Additionally, the ANA currently gets 120 Afghanis 
per day.  The MOI proposed that the food allowance be increased 
 
KABUL 00003089  003 OF 003 
 
 
immediately to 159 Afghanis ($3.18) through the end of the current 
fiscal year, at which point the situation would be reassessed.  In 
the meeting, Gen. Bashir said the total cost through the rest of 
this fiscal year would be $5 million (Note.  The actual cost at 
82,000 ANP for the final 4 months of this fiscal year would be 
almost $12 million.  End note). 
 
¶11. (U) The MOF said it could not pick up the cost of increasing the 
food allowance.  Since there was some urgency to reach a decision 
and the larger Steering Committee could not do so, the group charged 
a sub-group of the LOTFA Donors Working Group to come up with a 
proposal within one month. 
 
-------------- 
Other Business 
-------------- 
 
¶12. (U) In other business, the SC decided unanimously to invite the 
International Police Coordination Board (IPCB) to join the SC, 
albeit without voting authority on matters of substance.  Because 
the meeting had gone on for almost 3 hours, the group decided to 
waive a presentation on LOTFA's financial status and 
accomplishments.  Those charts show that the police remuneration 
account faces a shortfall of more than $18 million for the fiscal 
year ending March 2009 (budget of $189.2 million vs. pledges of 
$171.1 million).  The largest pledges for the current year are from 
the U.S. ($50 million), Canada ($19.8 million), and Germany and the 
Netherlands (each at $13.9 million).  Of note, the EC, which has 
pledged $10.4 million for the current year, has a carryover of $43.5 
million from previous years that has not been spent due to 
conditionalities placed on those funds by the donor. 
 
¶13. (SBU) Comment.  The LOTFA SC was a good measure of Minister 
Atmar's political acumen.  He began the meeting by walking around 
the room and shaking everyone's hand.  He then expressed his 
appreciation for the contributions of the donors, adding that he 
would expect much more to come.  He also made a point of honoring 
the memory of those ANP who had died or been disabled while serving 
their country, an issue that may be close to his heart due to his 
own disability (Atmar lost a leg in fighting during the Soviet 
occupation).  At one point, the EC representative made a series of 
negative comments, stating there was no guarantee of another 2-year 
LOTFA agreement (the current one expires August 2010), no guarantee 
of future IC funding for police salaries, and that all new 
requirements for funding should be viewed in light of Afghan 
"sustainability."  Atmar provided a strong response - the London 
Compact assumed that the State would not be able to support itself 
for years to come and that international partners would have to 
provide such support; we need a strong ANP to be able to increase 
national revenue; it was unfair to single out the ANP for a test of 
fiscal sustainability; and that if the decision is left to the 
GIRoA, whether police salaries are paid out of LOTFA or the central 
Afghan budget, "hard decisions will be made in favor of security." 
When Atmar asked if there was consensus to approve the increase in 
ANP pay, the EC representative tried to protest but could not do so 
before Atmar called the decision final.  End comment. 
 
DELL#