VZCZCXRO1234
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHAN #0523 1511245
ZNR UUUUU ZZH
R 311245Z MAY 07
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC 4866
INFO RUCNSAD/SADC COLLECTIVE
RUEHNY/AMEMBASSY OSLO 0008
RUEHLMC/MILLENNIUM CHALLENGE CORP
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS ANTANANARIVO 000523 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR AF/E MBEYZEROZ 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM ETRD PREL ECON NO MA
SUBJECT:  NORWAY-FUNDED CORRUPTION EXPERT ADVISES MALAGASY 
 
 
¶1. (SBU) SUMMARY:  Fredrik Galtung of the organization "tiri: Making 
Integrity Work" provided donors and anti-corruption officials a 
briefing May 25 following extensive consultations in Madagascar.  He 
identified judicial reform as the top priority for any substantial 
improvement on transparency and integrity.  In addition, he 
highlighted the weaknesses of journalists and NGOs who could 
potentially play a role in reducing corruption.  Noting that a 
degree of transparency is typically a prerequisite for economic 
growth, Galtung called on the Malagasy to move beyond measuring 
"activities" to measuring the "impact" of their policy.  END 
SUMMARY. 
 
Judicial Reform Desperately Needed 
---------------------------------- 
 
¶2. (SBU) Norway-financed corruption expert Fredrik Galtung of "tiri: 
Making Integrity Work" (www.tiri.org) briefed top officials from the 
Committee to Safeguard Integrity (CSI), the Independent 
Anti-Corruption Bureau (BIANCO) and donors May 25 about findings 
from his consultations.  He identified judicial reform as 
Madagascar's top priority in order to make any real progress in 
combating corruption.  Galtung noted that the special "chaine 
penale" which was established to handle corruption was a good first 
step, but must be reinforced.  He described the rest of the judicial 
system as totally ineffective, emphasizing that the USD 14 million 
budget for the entire Justice Ministry, including prisons, was 
barely a quarter the size necessary to be effective. 
 
¶3. (SBU) Elaborating on judicial failures, Galtung reported that 
private sector operators "feared the Malagasy justice system" and 
"avoided the courts at all cost."  Without rule of law, protection 
of investment, enforceability of contracts, and a level playing 
field, Galtung concluded, economic development is virtually 
impossible. 
 
Weak Journalism and NGOs 
------------------------ 
 
¶4. (SBU) After the judicial system, Galtung identified weaknesses in 
the media and civil society as obstacles to real progress toward 
transparency in Madagascar.  Journalists, he reported, are biased, 
report cases only in return for payment, and are unwilling or unable 
to practice investigative journalism.  Likewise Madagascar's NGOs 
are effective in limited areas related to the fight against 
corruption, notably education and awareness activities.  Galtung 
argued that BIANCO and CSI cannot be effective alone as government 
institutions, NGO advocacy and legal action against corrupt 
practices are also key ingredients for success.  He noted an 
important risk in currently-funded activities:  if awareness is 
raised among Malagasy, but there is no action, no prosecutions, 
people will quickly become frustrated. 
 
Do Donors Have Long-Term Vision? 
-------------------------------- 
 
¶5. (SBU) Galtung asked rhetorically if Madagascar's partners in the 
donor community have a sufficiently long-term vision to battle 
corruption.  He commended Norway, USAID, and others for supporting 
BIANCO and CSI, but emphasized it us ultimately the GOM that must 
fund anti-corruption activities.  He used examples from Hong Kong, 
Singapore, France, and the United States to explain that governments 
of advanced economies do not curb corruption simply for the prestige 
or reputation for transparency.  In fact the main motivation is that 
good governance and fair economic practices are generally 
prerequisites for economic growth. 
 
COMMENT:  Test of Rhetoric or Reality 
------------------------------------- 
 
¶6. (SBU) Galtung's counsel did not fall on deaf years, as CSI 
President Bakolalao Ramanandraibe and BIANCO Director General Rene 
Ramarozatovo are two of the best-qualified senior officials in 
government.  Bako is a former magistrate with a strong legal 
background and Ramarozatovo is a Lieutenant-General in the Malagasy 
Army.  The context and timing of Galtung's visit are interesting in 
terms of the political will to fight corruption.  The same week the 
International Monetary Fund launched an audit of President 
Ravalomanana's TIKO company to investigate unpaid import taxes 
estimated at up to 13 billion Ariary (USD seven million).  BIANCO 
and an international accounting firm will conduct the audit of 
TIKO's records back to July, 2006.  While Galtung's presence is a 
positive sign, the outcome of the audit may go further in separating 
the reality from the rhetoric in the GOM's anti-corruption efforts. 
END COMMENT. 
 
MCGEE