VZCZCXYZ0000
RR RUEHWEB

DE RUEHKG #0394/01 0801418
ZNR UUUUU ZZH
R 211418Z MAR 07
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC 4512
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC

UNCLAS KINGSTON 000394 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR INL/LP (BOZZOLO), INL/C (KOHN) AND WHA/CAR 
(BUDDEN) 
JUSTICE FOR OPDAT (LIPMAN) 
TREASURY FOR OTA (BORAKOVE) 
 
E.O. 12958: N/A 
TAGS: KCOR KJUS PGOV JM
SUBJECT: ANTI-CORRUPTION STRATEGY:  AUDITOR GENERAL 
 
 
¶1.  (SBU) BEGIN SUMMARY:  IN ACCORDANCE WITH THE EMBASSY'S 
PLAN TO PROMOTE ANTI-CORRUPTION MEASURES, ACTING NARCOTICS 
AFFAIRS DIRECTOR (NASDIR) CALLED ON JAMAICA'S AUDITOR 
GENERAL, ADRIAN STRACHAN, IN ORDER TO GET A BETTER 
UNDERSTANDING OF HIS ROLE IN COUNTERING CORRUPTION BY PUBLIC 
OFFICIALS.  NASDIR PRAISED STRACHAN'S EFFORTS EARLY IN THE 
YEAR TO BRING IRREGULARITIES IN GOVERNMENT ACCOUNTS TO THE 
ATTENTION OF PARLIAMENT AND THE PUBLIC.  STRACHAN OFFERED 
SUGGESTIONS ON HOW THE U.S. SHOULD PROCEED.  END SUMMARY. 
 
¶2.  (SBU) MEETING WITH AUDITOR GENERAL (AG) ADRIAN STRACHAN 
ON MARCH 5, NASDIR INFORMED HIM OF THE EMBASSY'S INTEREST IN 
PURSUING A MORE PRO-ACTIVE APPROACH IN HELPING THE GOJ ATTACK 
THE PROBLEM OF CORRUPTION.  REFERRING TO LOCAL MEDIA 
ATTENTION WHICH WAS BEING GIVEN TO THE INCSR'S STATEMENTS 
ABOUT CORRUPTION IN JAMAICA, STRACHAN URGED THE USG TO 
CONTINUE TO MAKE STRONG COMMENTS ON TRANSPARENCY, 
ACCOUNTABILITY AND RULE OF LAW.  HE (AND OTHERS IN AND OUT OF 
GOVERNMENT) BELIEVES THAT EXTERNAL "PULL" HELPS TO SENSITIZE 
THE GOVERNMENT TO THE NEED FOR CHANGE, FOR COMPLIANCE WITH 
LAWS AND REGULATIONS; AND NOT JUST PAY LIP SERVICE TO SUCH 
THINGS. 
 
¶3.  (SBU) STRACHAN EXPLAINED THAT HE ALSO SITS ON THE 
INTEGRITY COMMISSION, WHICH MONITORS THE INTEGRITY OF 
PARLIAMENTARIANS, AND THE CORRUPTION PREVENTION COMMISSION 
(CPC),WHICH IS TO ENSURE THAT PUBLIC SERVANTS ARE NOT 
CORRUPT.  HE SUGGESTED THAT BOTH COULD BENEFIT FROM OUR 
ATTENTION.  THE CPC HAS BEEN HAMSTRUNG BY LACK OF GOVERNMENT 
BUDGET SUPPORT, ALTHOUGH THEY HAVE ASKED FOR INCREASED STAFF 
IN THE ANNUAL BUDGET DUE IN APRIL.  CPC NEEDS, HE SAID, TO 
DEVELOP A CAPACITY TO DO INVESTIGATIONS.  HE ENCOURAGED US TO 
MEET WITH THEM AND PERHAPS PROVIDE TRAINING.  COMMENT:  THE 
DIRECTOR OF PUBLIC PROSECUTIONS ALSO POINTED OUT THE NASDIR 
THAT CPC NEEDS ATTENTION.  SO FAR, ALL THEY HAVE BEEN ABLE TO 
DO IS RECEIVE FINANCIAL DISCLOSURE REPORTS FROM PUBLIC 
OFFICIALS.  EVEN COMPLIANCE WITH SUBMISSION OF THE REPORTS 
HAD BEEN A PROBLEM.  WITHIN THE PAST YEAR, CPC DECIDED TO 
FILE LEGAL CHARGES AGAINST PERSONS WHO FAILED TO SUBMIT THEIR 
REPORT.  AS A RESULT THE REPORTS WERE FILED AND CHARGES WERE 
DROPPED.  NASDIR UNDERSTANDS THAT THESE REPORTS ARE NOT 
ANALYZED FOR SUSPECT INFORMATION WHICH WOULD LEAD TO 
INVESTIGATIONS.  THEY ARE SIMPLY FILED.  END COMMENT. 
 
¶4.  (SBU) THE AG SUGGESTED THAT THE GOJ SHOULD ADDRESS THE 
ISSUE OF CONFLICT OF INTEREST AND PRODUCE A STRONG CODE OF 
ETHICS LAW WHICH PROVIDES SERIOUS PENALTIES FOR VIOLATIONS. 
IN PARTICULAR, HE INSISTED ON A LAW THAT CLEARLY MAKES IT A 
PUNISHABLE OFFENSE WHEN OFFICIALS FAIL TO COMPLY WITH 
EXISTING LAW.  COMMENT:  THAT POINT CAME TO THE EMBASSY'S 
ATTENTION IN JANUARY, WHEN STRACHAN EXPOSED "IRREGULARITIES" 
IN THE OPERATION OF THE UNIVERSAL ACCESS FUND COMPANY LTD. 
IT IS A GOVERNMENT-OWNED COMPANY THAT COLLECTS THE UNIVERSAL 
SERVICE LEVY FROM TELECOMMUNICATIONS COMPANIES AND IS 
SUPPOSED TO MANAGE THESE FUNDS THROUGH DISBURSEMENTS TO 
CABINET-APPROVED PROJECTS.  THE AG EXPOSED THAT FUNDS WERE 
NOT PROPERLY MANAGED (THEY WERE NOT DEPOSITED INTO THE 
GOVERNMENT'S GENERAL FUND) AND, IN SOME CASE, NOT EVEN 
COLLECTED.  HE SAID THESE ACTIVITIES WERE IN VIOLATION OF 
SECTION 114 OF THE CONSTITUTION AND SECTION 7 OF THE 
FINANCIAL ADMINISTRATION AND AUDIT ACT.  IN RESPONSE, THE 
MINISTRY OF INDUSTRY, TECHNOLOGY, ENERGY AND COMMERCE 
RECOGNIZED THAT THEY WERE BREAKING THE LAW, BUT STATED 
LEGISLATIVE CHANGES WERE REQUIRED IN ORDER TO EXEMPT THE LEVY 
FROM THE BUDGET PROCESS.  END COMMENT. 
 
¶5.  (SBU) HITTING AT A WIDESPREAD PROBLEM EXPERIENCED BY MOST 
OF THESE CORRUPTION-MONITORING BODIES, THE AG INDICATED THESE 
COMMISSIONS, HIS OFFICE, AND THE CONTRACTOR GENERAL'S OFFICE 
MUST HAVE ACCESS TO A LESS POLITICIZED SOURCE OF OPERATIONAL 
FUNDING.  AT PRESENT, REQUESTS FOR FUNDING ARE DECIDED BY THE 
MINISTER OF FINANCE.  IN THE UK, THE SYSTEM SEEMS TO WORK 
BETTER, BECAUSE THESE INDEPENDENT BODIES GO DIRECTLY TO A 
PARLIAMENTARY COMMITTEE TO OBTAIN FUNDING.  COMMENT: 
CREATING A PARLIAMENTARY COMMITTEE HERE IN JAMAICA IS 
SOMETHING THE EMBASSY WILL EXPLORE WITH OUR BRITISH 
COLLEAGUES.  END COMMENT. 
 
¶6.  (SBU) CONCLUSION:  AS THE TITLE IMPLIES, THE AG AUDITS 
THE BOOKS OF JAMAICA'S PUBLIC BODIES, INCLUDING PARISH 
COUNCILS.  HE HAS AN AUTHORIZED STAFF OF 173 WITH ONLY 15 
VACANCIES.  ACCORDING TO STRACHAN, HE IS NOT HURTING FOR LACK 
OF BUDGET SUPPORT.  HE HAS BEEN OUTSPOKEN IN EXPOSING 
WRONG-DOING.  THE PROBLEM, AS HE SAYS, IS THERE IS LITTLE HE 
CAN DO OTHER THAN EXPOSING THE WRONG-DOING.  THE LAW 
AUTHORIZING THE AUDITOR GENERAL FUNCTION PROVIDES FOR A 
MAXIMUM PENALTY OF J$5000 (US$77) UPON CONVICTION IF SOME ONE 
REFUSES TO COMPLY WITH HIS REQUESTS FOR DOCUMENTS, TESTIMONY, 
ETC.  LACK OF STRONG PENALTIES AND, IN MOST CASES, WEAK 
BUDGET SUPPORT ARE COMMON PROBLEMS FACED BY INDEPENDENT, 
WATCHDOG ENTITIES.  IT APPEARS THAT THE GOJ IS IN NO RUSH TO 
STRENGTHEN THESE ENTITIES. 
JOHNSON