VZCZCXRO8224
PP RUEHBZ RUEHGI
DE RUEHGI #0007/01 0141649
ZNR UUUUU ZZH
P R 141649Z JAN 10
FM AMEMBASSY BANGUI
TO RUEHC/SECSTATE WASHDC PRIORITY 1123
INFO RUEHBZ/AMEMBASSY BRAZZAVILLE 0261
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHKH/AMEMBASSY KHARTOUM 0364
RUEHKI/AMEMBASSY KINSHASA 0377
RUEHLC/AMEMBASSY LIBREVILLE 0276
RUEHNJ/AMEMBASSY NDJAMENA 0565
RUEHFR/AMEMBASSY PARIS 0554
RUEHYD/AMEMBASSY YAOUNDE 0541
RUEHGI/AMEMBASSY BANGUI 1420

UNCLAS SECTION 01 OF 02 BANGUI 000007 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR AF/C 
FOR EB/IFD/OMA BRIANA SAUNDERS 
 
E.O. 12958: N/A 
TAGS: AID EAID ECON EFIN PREL CT
SUBJECT: CAR:  IMPROVEMENTS IN BUDGET TRANSPARENCY EVIDENT 
 
REF: A. A - 10 STATE 1923 AND PREVIOUS 
     ¶B. REF: B - 09 BANGUI 204 
 
¶1. (SBU) SUMMARY: This is a response to Ref A.  The Central 
African Republic (CAR) made commendable strides to address 
budget transparency in 2009. Though there is still much ground 
to cover, the government, with the help of the international 
community, is making concerted efforts to increase its control 
of spending and precision of data. These improvements lead Post 
to support a waiver for the CAR in 2010. END SUMMARY. 
 
 
¶2. (U) The following current programs fall under SFOAA 
regulations: 
 
-- The U.S. Defense Attache's Office occasionally sends Central 
African military officers to training through the International 
Military Education and Training Program. This training does not 
normally include a budgeting or fiscal component. 
 
-- USAID funding of a USD 2.75 million Road Rehabilitation 
Project between the Central African towns of Bozoum and 
Bossangoa. 
 
--USAID funding of a USD 2.5 million Property Rights and 
Artisanal Diamond Development (PRADD) project in support of 
Kimberley Process goals. 
 
 
¶3. (U) The CARG publishes its annual budget each year. Copies 
are made available to interested citizens and observers, though 
a lack of resources prevents the Government from distributing 
the document widely. 
 
 
¶4. (U) There have been no events in the last year that effected 
fiscal transparency. 
 
 
¶5. (U) In 2009, the CARG adopted a number of measures to 
increase its budget's transparency as well as bringing revenues 
and expenditures under tighter control: 
 
--  In 2009, the government closed 51 bank accounts managed by 
individual ministries in commercial banks and consolidated the 
accounts into a single treasury account in the Central African 
Regional Bank (BEAC). Customs receipts are directly transferred 
to BEAC as well. 
 
-- Only the Director of the Treasury may now issue checks from 
the treasury. 
 
-- All budget and treasury operations from 2007 and 2008 are 
being transferred to a computerized system that will be reviewed 
by both a Court of Account and the National Assembly. While 
there are some technical difficulties and institutional foot 
dragging, experts think this process will be completed by the 
end of 2010. 
 
-- In January 2009, the government declaring assets of ministers 
and senior civil servants upon entry into office. Full 
compliance with the rule has been achieved. Unfortunately, it is 
not required that those same individuals make a declaration upon 
leaving office. 
 
-- According to the World Bank, the government is adhering to 
EITI's criteria, having just published data from 2006. 
 
 
¶6. (U) In September 2009, Post engaged the CARG on fiscal 
transparency (Ref B). DCM discussed the need for greater 
responsibility and accountability in the budget with senior 
officials at the Ministry of Foreign Affairs and Finance who 
agreed that while positive steps had been taken, there is still 
much work to do. On a separate occasion, the DCM renewed the 
USG's message to the CAR Minister of Commerce in a discussion 
about MCC eligibility. 
 
 
¶7. (SBU) The CARG has made solid steps in 2009 and should be 
commended for doing so. The new engagements taken by the 
government have not closed all the loopholes, but they are 
 
BANGUI 00000007  002 OF 002 
 
 
building a foundation from virtually nothing when the government 
reengaged with the WB, IMF and other international organizations 
in 2005. There are still serious shortfalls in budget execution, 
controls on exactly how spending it carried out, and corruption 
outside of the budgetary process. This necessitates close 
monitoring by the international community and continued will by 
the CARG to curb excesses. Yet it remains Post's conviction that 
the Ministry of Finance is making positive steps toward 
increasing fiscal transparency and should be supported in its 
efforts by granting a waiver to the CAR for 2010. 
COOK