VZCZCXYZ3054
RR RUEHWEB

DE RUEHBO #0838/01 0652255
ZNR UUUUU ZZH
R 052255Z MAR 08
FM AMEMBASSY BOGOTA
TO RUEHC/SECSTATE WASHDC 1685
INFO RUEHCV/AMEMBASSY CARACAS 0054
RUEHLP/AMEMBASSY LA PAZ MAR LIMA 5979
RUEHZP/AMEMBASSY PANAMA 1349
RUEHQT/AMEMBASSY QUITO 6630

UNCLAS BOGOTA 000838 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
EEB/IFD/OMA FOR ASNOW AND RFIGUEROA; WHA/EPSC FOR PMAIER 
 
E.O. 12958: N/A 
TAGS: EAID ECON PREL PGOV CO
SUBJECT: COLOMBIA: REPORT ON FISCAL TRANSPARENCY 
 
REF: STATE 16737 
 
¶1. (U) The following information responds to request in 
reftel. 
 
Colombian Government Efforts 
---------------------------- 
¶2. (SBU) Under the administration of President Alvaro Uribe, 
the Colombian government (GOC) has made significant progress 
on increasing accountability and transparency.  Nevertheless, 
a lack of institutional capacity, narcotics-trafficking and 
guerrilla violence, remain a threat to Colombia's long-term 
democratic security, financial standing, and ability to 
attract and maintain foreign investment. 
 
¶3. (SBU) The GOC has taken significant steps to streamline 
government procurement, increase transparency in public 
expenditure, and ensure accountability in government 
programs.  In 2003, the GOC launched the "Colombia Online' 
program, aimed at improving transparency, efficiency, and 
clarity in procurement practices by making public the terms 
of reference of bidding processes, eliminating onerous 
registration costs, and updating inventories and accounting 
information in real time.  Today, the Unified Contracting 
Portal (Portal Unico de Contracion) website 
(www.contratos.gov.co) contains detailed information on all 
scheduled government bids.  Under Law 80, the GOC has 
eliminated exemptions to open and full competitions, 
incorporated public audiences in the award process, and 
mandated  preliminary studies to evaluate the viability of 
works. 
 
¶4. (SBU) The GOC also makes public on the internet both the 
approved national budget as well as amendments to the budget 
made during the fiscal year.  The published data includes 
both revenues and expenditures, in detail with regular 
updates.  The GOC tax administration has implemented an 
extensive program since 2005 to improve the efficiency, 
transparency and effectiveness of its collection system.  Due 
in part to this effort, the GOC recorded a 14 percent 
increase in tax revenues in 2007. 
 
¶5. (SBU) In 2007, the Presidential Anti-corruption Program 
launched the Visible Audits Program aimed at involving 
beneficiaries and local governments in the review of public 
investments in health, potable water, education and housing. 
The GOC held more than 150 public audiences countrywide in 
2007 with a similar number planned in 2008.  This initiative 
has succeeded in improving the transparency and efficiency of 
these investments, as well as allowed the identification of 
specific cases of corruption. 
 
¶6. (SBU) The GOC continues to move forward with other 
measures that promote transparency, including its March 2007 
announcement to join the Extractive Industries Transparency 
Initiative (EITI) and the successful partial privatization of 
the state-owned hydrocarbons company Ecopetrol.  Amid these 
measures at the national level, the central government has 
begun strengthening efforts in increase accountability at the 
departmental and municipal levels where a significant portion 
of revenues are transferred under constitutional mandate and 
where narcotics-trafficking and guerrilla violence remain a 
threat to local governments and populations. 
 
IMF Reporting 
------------- 
 
¶7. (SBU) The IMF has reported periodically on Colombia's 
compliance with standards and codes covering transparency, 
including in the areas of data dissemination, payments 
systems, fiscal expenditures, and securities regulation. 
 
U.S. Assistance 
--------------- 
 
¶8. (U) The U.S. Agency for International Development (USAID) 
supports the government's commitment to fiscal accountability 
and transparency through diverse projects aimed at 
institutional strengthening, increased public awareness and 
improved internal controls.  Between 2000 and 2006, 
USAID/Colombia's Transparency and Accountability Program 
supported the design and implementation of standards for 
public entities to ensure the effective implementation of 
internal controls. 
 
¶9. (U) The USAID Transparency and Accountability Program has 
 
supported 500 citizen oversight groups, through micro-grants, 
and the creation of 6 participation centers to monitor 
provision of public of public services and works.  In 
cooperation with the National Planning Department, USAID is 
currently providing technical assistance for two pilot 
efforts of Results-Based Budgeting for two Colombian 
government agencies:  the Colombian Family Welfare Institute 
(ICBF) and the Colombian National Highway Institute (INVIAS). 
 Both agencies included this budgeting methodology in their 
2008 budget final decree. 
Brownfield