VZCZCXRO0050
RR RUEHLN RUEHVK RUEHYG
DE RUEHDBU #0590/01 1090342
ZNR UUUUU ZZH
R 190342Z APR 07
FM AMEMBASSY DUSHANBE
TO RUEHC/SECSTATE WASHDC 0095
INFO RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RUCNCIS/CIS COLLECTIVE
RUEHBUL/AMEMBASSY KABUL 2058
RUEHNE/AMEMBASSY NEW DELHI 2065
RUCNDT/USMISSION USUN NEW YORK 1432
RUEHVEN/USMISSION USOSCE 1949
RUEHBS/USEU BRUSSELS 1199
RUEHDBU/AMEMBASSY DUSHANBE 1751

UNCLAS SECTION 01 OF 03 DUSHANBE 000590 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM TI
SUBJECT: DAS FEIGENBAUM VISITS NEW ANTI-CORRUPTION AGENCY 
 
DUSHANBE 00000590  001.2 OF 003 
 
 
¶1.  (U)  SUMMARY:  At the top of the agenda for many Tajik 
officials is attracting private business to Tajikistan. 
However, Tajikistan's current legal and regulatory environment, 
infested with corruption, deters American businesses.   In a 
meeting with Sherkhon Salimov, Director of the new State Agency 
on Anti-Corruption and Financial Control April 13, SCA Deputy 
Assistant Secretary Evan Feigenbaum explained that an 
anti-corruption agency in Tajikistan can only help to attract 
American businesses, if it can weed out corruption in an 
effective, transparent and public manner, and at every level. 
END SUMMARY. 
 
WHAT DOES THE ANTI-CORRUPTION AGENCY DO? 
 
¶2.  (SBU)  Salimov openly admitted that corruption is so endemic 
in Tajik society that even President Rahmon has acknowledged it 
is a problem and the people have demanded the government address 
it.  However, Salimov also confessed that the problem is 
daunting and the new agency cannot possibly cut out all 
corruption in society.  The government is in the process of 
drafting legislation that defines the anti-corruption agency's 
mandate.  The agency has two primary priorities: the first is to 
examine expenditures of state finances and resources, the state 
budget and its credits and loans.  The second is to wage an 
anti-corruption campaign. 
 
¶3.  (U)  The agency is tasked with preventing corruption, 
investigating corruption cases and processing the cases through 
the judicial system if applicable.   Its scope will affect all 
fields of life from businesses to public associations, state 
agencies and individuals.  It aims to expose obstacles created 
by government agencies and will investigate what causes and 
leads to corruption.  To prevent corruption within the 
anti-corruption agency itself, the general prosecutor's office 
will have some oversight.  The agency will report to the 
president's office. 
 
¶4.  (U)  Salimov emphasized that the anti-corruption agency is 
responsible to the people.  The agency plans to educate the 
people on their rights and will set up a division to help 
individuals take their cases to the courts.  By educating and 
empowering the people, Salimov says, they will begin to demand 
and exercise their rights and freedoms. 
 
WHY BUSINESSES DON'T COME TO TAJIKISTAN 
 
¶5.  (U)  Deputy Assistant Secretary Feigenbaum encouraged 
Salimov and the anti-corruption agency to investigate corruption 
on every level including among high level government officials. 
In order to develop a robust relationship between Tajikistan and 
private American businesses, inspections, bribes, and 
overregulation are the types of obstacles the Tajik government 
needs to tackle.  He explained that the perception among 
American businesses is that in Tajikistan there is a range of 
corruption starting from the militia on the street who pull 
motorists over for bribes to local people who want to start a 
business but are obstructed by inspection after inspection. 
International businesses are primarily concerned with 
individuals or government agencies who want a piece of their 
contract and large-scale organized corruption. 
 
¶6.  (U)  Feigenbaum also noted over-regulation as an impediment 
to investment, citing a World Bank report on "Doing Business" 
indicating it takes over 60 days to open a business in 
Tajikistan.  The hardest challenge for the government is to find 
the right balance between loosening constraints to encourage 
growth and removing obstacles that prohibit productivity. 
Feigenbaum recommended to Salimov that prosecuting corrupt 
individuals or organizations from the senior levels in a 
transparent, open and public way would teach others a lesson and 
send a strong message to the people that the government would 
not tolerate corruption. 
 
¶7.  (U)  Salimov generally agreed with Feigenbaum's comments and 
stated the agency will go after all individuals guilty of 
corruption regardless of rank or government branch. 
 
¶8.  (SBU)  COMMENT:  It is still too early to tell whether 
Salimov (himself rumored to be corrupt during his days as a 
Dushanbe prosecutor) and the new agency will have any positive 
impact.  Salimov and the Tajik government know well that 
international governments, donor agencies and businesses want 
 
DUSHANBE 00000590  002.2 OF 003 
 
 
them to actively fight corruption, but until the agency 
institutes real legislative and regulatory changes and goes 
after high-level government officials, corruption will remain an 
obstacle to economic development and democratic progress.   END 
COMMENT. 
SUBJECT:  DAS FEIGENBAUM MEETS WITH NEW ANTI-CORRUPTION AGENCY 
 
¶1.  (U)  SUMMARY:  At the top of the agenda for many Tajik 
officials is attracting private business to Tajikistan. 
However, Tajikistan's current legal and regulatory environment, 
infested with corruption, deters American businesses.   In a 
meeting with Sherkhon Salimov, Director of the new State Agency 
on Anti-Corruption and Financial Control April 13, Deputy 
Assistant Secretary Evan Feigenbaum explained that an 
anti-corruption agency in Tajikistan can only help to attract 
American businesses, if it can weed out corruption in an 
effective, transparent and public manner, and at every level. 
END SUMMARY. 
 
WHAT DOES THE ANTI-CORRUPTION AGENCY DO? 
 
¶2.  (SBU)  Salimov openly admitted that corruption is so endemic 
in Tajik society that even President Rahmon has acknowledged it 
is a problem and the people have demanded the government address 
it.  However, Salimov also confessed that the problem is 
daunting and the new agency cannot possibly cut out all 
corruption in society.  The government is in the process of 
drafting legislation that defines the anti-corruption agency's 
mandate.  The agency has two primary priorities: the first is to 
examine expenditures of state finances and resources, the state 
budget and its credits and loans.  The second is to wage an 
anti-corruption campaign. 
 
¶3.  (U)  The agency is tasked with preventing corruption, 
investigating corruption cases and processing the cases through 
the judicial system if applicable.   Its scope will affect all 
fields of life from businesses to public associations, state 
agencies and individuals.  It aims to expose obstacles created 
by government agencies and will investigate what causes and 
leads to corruption.  To prevent corruption within the 
anti-corruption agency itself, the general prosecutor's office 
will have some oversight.  The agency will report to the 
president's office. 
 
¶4.  (U)  Salimov emphasized that the anti-corruption agency is 
responsible to the people.  The agency plans to educate the 
people on their rights and will set up a division to help 
individuals take their cases to the courts.  By educating and 
empowering the people, Salimov says, they will begin to demand 
and exercise their rights and freedoms. 
 
WHY BUSINESSES DON'T COME TO TAJIKISTAN 
 
¶5.  (U)  Deputy Assistant Secretary Feigenbaum encouraged 
Salimov and the anti-corruption agency to investigate corruption 
on every level including among high level government officials. 
In order to develop a robust relationship between Tajikistan and 
private American businesses, inspections, bribes, and 
overregulation are the types of obstacles the Tajik government 
needs to tackle.  He explained that the perception among 
American businesses is that in Tajikistan there is a range of 
corruption starting from the militia on the street who pull 
motorists over for bribes to local people who want to start a 
business but are obstructed by inspection after inspection. 
International businesses are primarily concerned with 
individuals or government agencies who want a piece of their 
contract and large-scale organized corruption. 
 
¶6.  (U)  Feigenbaum also noted over-regulation as an impediment 
to investment, citing a World Bank report on "Doing Business" 
indicating it takes over 60 days to open a business in 
Tajikistan.  The hardest challenge for the government is to find 
the right balance between loosening constraints to encourage 
growth and removing obstacles that prohibit productivity. 
Feigenbaum recommended to Salimov that prosecuting corrupt 
individuals or organizations from the senior levels in a 
transparent, open and public way would teach others a lesson and 
send a strong message to the people that the government would 
not tolerate corruption. 
 
¶7.  (U)  Salimov generally agreed with Feigenbaum's comments and 
stated the agency will go after all individuals guilty of 
 
DUSHANBE 00000590  003.2 OF 003 
 
 
corruption regardless of rank or government branch. 
 
¶8.  (SBU)  COMMENT:  It is still too early to tell whether 
Salimov (himself rumored to be corrupt during his days as a 
Dushanbe prosecutor) and the new agency will have any positive 
impact.  Salimov and the Tajik government know well that 
international governments, donor agencies and businesses want 
them to actively fight corruption, but until the agency 
institutes real legislative and regulatory changes and goes 
after high-level government officials, corruption will remain an 
obstacle to economic development and democratic progress.   END 
COMMENT. 
JACOBSON