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Lucia A Keegan  11/08/2006 02:48:02 PM  From  DB/Inbox:  Lucia A Keegan

Cable 
Text:                                                                      
                                                                           
      
C O N F I D E N T I A L        PARIS 07098

SIPDIS
cxparis:
    ACTION: UNESCO
    INFO:   POL ECON AMBU AMB AMBO DCM SCI

DISSEMINATION: UNESCOX
CHARGE: PROG

APPROVED: AMB:LOLIVER
DRAFTED: DCM:AKOSS
CLEARED: NONE

VZCZCFRI014
OO RUEHC RUEHBR
DE RUEHFR #7098 3001703
ZNY CCCCC ZZH
O 271703Z OCT 06
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2652
INFO RUEHBR/AMEMBASSY BRASILIA 1703

C O N F I D E N T I A L PARIS 007098 
 
SIPDIS 
 
FROM USMISSION UNESCO PARIS 
 
DEPARTMENT FOR IO/UNESCO, IO/FO, WHA/BSC, L/UNA 
 
E.O. 12958: DECL: 10/27/2016 
TAGS: UNESCO SCUL BR
SUBJECT:  (U) USUNESCO - MORE INFORMATION ON BRASILIA OFFICE 
 
 
¶1.  (U) Classified by USUNESCO DCM Andrew Koss for reason 1.4 (d) 
 
¶2.  (C) Assistant Secretary Powell delivered her talking points 
on Brasilia to Director-General (DG) Matsuura during their 
meeting on October 24.  Following that meeting, Ambassador 
Oliver had a private session with the DG to discuss unconfirmed 
reports that the External Auditor was postponing his 
investigation of Brasilia in order to first investigate issues 
relating to ADG Peter Smith's management reform initiative.  In 
a follow up phone call to Ambassador Oliver on October 25, the 
DG told her that her concerns were unfounded and that the 
External Auditor is continuing to focus on Brasilia as a top 
priority.  He also told the Ambassador that he will be 
overseeing the entire investigation himself. 
 
¶3.  (C) Secretariat sources informed the Mission on October 20 
that the new UNESCO External Auditor, Philippe Seguin of France, 
had aggressively started to audit the Education Sector 
management reform, including the contract with the management 
consulting firm Navigant, rather than begin work on assessment 
of problems at the Brasilia office.  During the Executive Board, 
the derogation used by the DG and ADG Peter Smith to issue the 
Navigant contract came under sharp questioning from South 
Africa, India and Benin, though the comptroller pointed out that 
the DG's power to issue a derogation is clearly set out in the 
Organization's financial regulations. 
 
¶4.  (C) However, according to the DG, Brasilia is still the top 
priority and there will be a UNESCO mission to Brasilia in 
mid-November.  Although we are assured that the issues 
surrounding Brasilia will be thoroughly investigated without 
delay, we do not yet know exactly who will be on the Mission. 
 
¶5.  (U) Mission will deliver the Silverberg-Matsuura letter to 
the DG, as soon as final text is received and will ask for more 
details about the composition of the mission to Brasilia and the 
involvement of the External Auditor. 
 
¶6. (C) Comment.  There may be political motivation behind the 
External Auditor's move.  We were told that the Brazilian 
ambassador and External Auditor were supposed to have lunch 
during the Executive Board, but a direct link between the lunch 
and the investigation while plausible, would be strictly 
speculation.  As we reported septel those countries that pushed 
strongest for the audit of the Education Sector were those that 
most ardently supported Brazil's effort to prevent further 
evaluation of the Brasilia office.  The ambassador of Benin who 
was chairing the meetings that discussed Brasilia and the 
education reform was anxious to move things along quickly when 
the discussion was about Brasilia (though the meeting ended up 
lasting over two hours) but sanctimoniously said during the 
discussion of the education reform that he would not abide gray 
areas in UNESCO's financial management.  Peter Smith has invited 
scrutiny of his reform plan, and while he may not have expected 
the aggressiveness of the External Auditor, the education reform 
will go forward. 
Oliver