VZCZCXRO4880
RR RUEHGI RUEHMA RUEHROV
DE RUEHKH #1696/01 3050507
ZNR UUUUU ZZH
R 010507Z NOV 07
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC 9014
INFO RUCNFUR/DARFUR COLLECTIVE

UNCLAS SECTION 01 OF 02 KHARTOUM 001696 
 
SIPDIS 
 
SENSITIVE, SIPDIS 
 
DEPT FOR AF/SPG, AF/EPS, S/CRS, AF SE NATSIOS 
DEPT PLS PASS USAID FOR AFR/SUDAN, AND ALSO PASS USAID 
 
E.O. 12958: N/A 
TAGS: PREL PGOV EAID CDC SU
SUBJECT: CPA Fiscal Oversight Chairman shows independence 
 
 
¶1.  Summary:  As Coordinator of the Wealth Sharing Working Group, 
Embassy organized a special AEC plenary October 24 featuring Dr. 
Mohammed Osman Ibrahim, Chairman of the GOS's Fiscal and Financial 
Allocation and Monitoring Commission (FFAMC).  The presentation was 
organized to seek additional insight concerning the role, duties, 
and performance of the FFAMC, particularly given the challenges 
faced by the Wealth Sharing Working Group in finalizing its two-year 
progress report on CPA implementation.  There was a good turnout for 
the information session, with representatives from all the 
Coordinators' embassies, and most of the observer organizations. 
The Wealth Sharing Working Group's matrix on the wealth sharing 
provisions of the CPA was formally adopted by the AEC at its October 
30 plenary (to be reported separately), and will be presented by the 
AEC Chairman to the President of Sudan.  End Summary 
 
¶2.  Dr. Ibrahim's 30-minute PowerPoint presentation demonstrated 
that the FFAMC is indeed functioning.  It has made a good start in 
monitoring the various wealth-sharing provisions of the CPA, its 
main function.  However, in responding to questions from the SPLM, 
he stated that his commission was still waiting for information from 
various GOS bodies, especially the Ministry of Finance.  As long as 
the GOS delays providing this information (especially in regard to 
oil revenues), the FFAMC will have difficulty fulfilling its 
duties. 
 
¶3.  The question and answer phase following the presentation opened 
with a question from the SPLM: why isn't the FFAMC publishing all 
the figures related to the allocation of oil revenues, not just the 
amount allocated to the Government of Southern Sudan (GoSS), but the 
larger amount going into the national coffers?  Chairman Ibrahim 
replied that his Commission had not yet published any information 
regarding oil revenues.  It has submitted a request for such 
information to the Ministry of Finance as part of a list of other 
information requests, in a letter dated September 2, 2007.  The 
FFAMC is still awaiting a response from the Finance Ministry. 
 
¶4.  The SPLM then followed up with other questions relating to 
transparency.  It asked whether the Finance Ministry was usurping 
the FFAMC's duties by publishing itself the information on oil 
revenues and determining the allocation of those funds.  Dr. Ibrahim 
replied forthrightly that "I share your concerns completely."   He 
said the FFAMC should have a protocol with the Finance Ministry, 
consonant with the Wealth Sharing Protocol and the Sudanese 
Constitution, delineating how the two bodies are to cooperate.  He 
thanked the SPLM for their points, saying he would raise the issues 
in the Commission's talks with the Finance Ministry. 
 
¶5.  In response to an SPLM question regarding how the FFAMC was 
acting to implement the Panel of Experts' recommendations, Ibrahim 
said that the recommendations had been passed to the office of the 
Presidency, since it was up to the Presidency to distribute 
government functions.  One of the major duties of the FFAMC, he 
added, is to monitor all sources of national revenue, all of which 
should go into the National Revenue Fund (NRF).  The FFAMC should 
also monitor how the funds are distributed, and how they are 
utilized after allocation at each level of government. 
 
Equal Opportunity for Southerners? 
---------------------------------- 
 
¶6.  Responding to a pointed question from the SPLM on why there were 
no Southerners among his staff members sitting behind him in the 
conference room, Dr. Ibrahim said that he did have one staff member 
from the South.  He assured the audience that every job on the FFAMC 
is open to all applicants on the basis of merit, with no 
discrimination made on the basis of race, religion, geographical 
origin. 
 
Following the Money not made easier by the GOS 
--------------------------------------------- - 
 
¶7.  The SPLM noted that the Chairman himself had drawn attention to 
the fact that the national government is taking a larger percentage 
of oil revenues from the South than it was entitled to under 
provisions of the CPA.  (Note: The CPA prescribes 55.2% to the 
national government, while actual transfers are 61.6%). Dr. Ibrahim 
confirmed that fact, adding that the SPLM was correct in stating 
that the FFAMC should act in a monitoring capacity over the Ministry 
of Finance, and the latter must act according to the percentages 
clearly enumerated in the Wealth Sharing Protocol and the CPA. 
 
¶8.  The NCP delegation addressed this issue, claiming that the 
reason for the discrepancy was the result of the signing of peace 
accords for Darfur and the East.  Those agreements had fiscal 
implications, burdening the national government with additional 
responsibilities and expenses, he said.  In reply to this assertion, 
Chairman Ibrahim said flatly that "I hope that explanation is 
correct."  He stressed again that the NCP and the Finance Ministry 
are obliged to follow the clearly-stated percentages.  He again 
noted that the FFAMC is awaiting a reply from the Ministry of 
 
KHARTOUM 00001696  002 OF 002 
 
 
Finance.  "It is the FFAMC's responsibility to provide answers" in 
the interests of transparency, he said. 
 
¶9.  Bringing the meeting to a close, DCM Powers thanked Dr. Ibrahim 
for the candor with which he had replied to questions.  He 
summarized the proceedings, saying that it was obvious to the entire 
AEC that the FFAMC faces great challenges, which Dr. Ibrahim and his 
staff were acting to meet. 
 
Comment 
------- 
¶10.  AEC members, particularly the international observers, took 
note of Dr. Ibrahim's forthrightness, and his spirit of 
independence.  He did not hesitate to endorse SPLM concerns, or to 
state that the GOS was not abiding by some terms of the CPA.  He 
described how the Finance Ministry is impeding the FFAMC's work by 
not responding in a timely manner to his requests for meetings and 
for information.  Dr. Ibrahim has extensive past experience as an 
official of the National Finance Ministry.  He was enthusiastic in 
responding to our request that he address the AEC, and stated that 
he took the need for transparency in his role as FFAMC chairman 
quite seriously.  His replies demonstrated that he understands that 
he can use the concerns expressed by the AEC as leverage in his 
discussion with the GOS.  Going forward, we will be looking for 
additional ways to support the FFAMC. 
 
 
FERNANDEZ