VZCZCXRO0465
RR RUEHROV
DE RUEHKH #0353/01 0701503
ZNR UUUUU ZZH
R 101503Z MAR 08
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC 0158
INFO RUCNIAD/IGAD COLLECTIVE

UNCLAS SECTION 01 OF 02 KHARTOUM 000353 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KSCA OTRA EAID CDC SU
SUBJECT: TRANSPARENCY AND ABYEI OIL ARE TOP AEC WEALTH SHARING 
WORKING GROUP PRIORITIES FOR MID TERM EVALUATION 
 
REF:  KHARTOUM 258 
 
¶1.  (U) Summary:  The Wealth Sharing Working Group (WSWG) 
coordinated by the US Embassy met March 5 to identify concerns to be 
addressed in the AEC's Mid Term Evaluation (MTE).  The AEC Chairman 
must present the MTE to President Al-Bashir on or before July 8 
according to a "Terms of Reference" document approved by the CPA 
parties.  The Working Group enumerated its concerns in a draft 
skeleton outline prepared to guide the drafting process.  End 
Summary 
 
¶2.  (U) The March 5 meeting was a follow-on to the WSWG meeting of 
February 17 (reported reftel).  The earlier meeting was aborted due 
to the absence of an SPLM representative empowered to speak on 
behalf of the issues. 
 
WSWG Agrees items to address in MTE 
----------------------------------- 
 
¶3.  (U) Acting as Chairman of the WSWG, DCM Powers requested that 
the parties indicate those issues they deem to be the most important 
and most critical to be addressed in the MTE.  Among the topics 
agreed for the MTE: 
 
-- General Plan:  The sides agreed to use as a basis for its report 
the matrix that WSWG contributed to the two-year Factual Report 
completed November 2007.  The MTE should be in narrative form, and 
should be more analytical in nature, identifying shortcomings and 
solutions. 
 
-- Accentuate the Positive:  The NCP rep stressed that the report 
should not merely identify shortcomings, but also should acknowledge 
successes.  The NCP rep pointed out that one of the purposes of the 
AEC is to make unity attractive by implementing the CPA, and he 
argued that this can best be done by highlighting successes. 
 
-- Transparency in oil income distribution:  This was the SPLM's 
most pressing concern.  The SPLM is dissatisfied with the 
methodology for calculating and distributing income and suspects it 
is being chronically short-changed. 
 
-- Role of the Fiscal and Financial Allocation and Monitoring 
Commission (FFAMC):  The WSWG will invite the FFAMC Chairman to 
brief on developments since his last presentation to the working 
group in 2007.  In particular, the NCP wishes to query whether the 
Government of Southern Sudan (GOSS) has cooperated in supplying 
requested information to the FFAMC.  (Note:  In his previous 
appearance, the FFAMC Chairman had criticized in particular the 
National Ministry of Finance for its lack of cooperation. End note.) 
 The NCP insisted that the FFAMC should monitor not just 
distribution of revenues by the GNU to the GOSS, but by the GOSS to 
Southern state and local governments as well.  The SPLM responded 
that the latter duty is the job of the Southern Sudan FFAMC (a body 
the NCP believes is not contemplated in the CPA). 
 
-- Evaluation of work of other GNU bodies:  These include the 
Finance Ministry, the National Petroleum Commission, and the Joint 
Technical Commission.  As appropriate, the WSWG will attempt to 
schedule visits to these bodies. 
 
-- Evaluation of work of GOSS bodies:  The NCP insists the GOSS 
should be evaluated as well.  The SPLM did not object - its 
representative volunteered that the GOSS Ministry of Finance should 
be examined in particular. 
 
-- Abyei Oil Revenues:  As expected, this proved the most 
contentious issue of the WSWG meeting, and will likely feature 
prominently in the MTE, despite objections by the NCP.  The NCP 
insisted that all aspects of Abyei be addressed within the Three 
Areas Working Group.  Other parties (including the UK and Dutch 
representatives, who coordinate the Three Areas WG) argued that 
Abyei must be addressed by the WSWG since it cuts across working 
group boundaries.  The UK representative, in particular, urged that 
the most prudent course would be to deposit Abyei's oil income into 
an escrow account awaiting a final resolution of the Abyei question. 
 The NCP claimed the area's oil revenues are being distributed 
according to Abyei's current status as part of Southern Kordofan. 
 
-- Consultations with Communities and Environmental Impact of 
Drilling Activities:  The SPLM recalled that the Factual Report had 
noted that more needed to be done on consultations with communities 
affected by the oil industry.  The UK representative argued that an 
expert consultant should be hired (a step that the AEC Chairman has 
asked all WG's to consider) to make both of these evaluations. 
Merely having the WSWG "parachute in for a visit" was inadequate, 
she said. 
 
¶4.  (U) The WG members approved a draft work plan for the next few 
months, concentrating on preparation of the MTE.  As WG Coordinator, 
Embassy Khartoum will draft a "skeleton outline" incorporating the 
above concerns for discussion at the WSWG's next meeting on 
 
KHARTOUM 00000353  002 OF 002 
 
 
Wednesday, March 12. 
 
¶5.  (U) Comment:  We were pleased with the collegial and 
constructive approach taken by the parties at the March 5 meeting. 
The issues of oil income distribution and transparency, not to 
mention income from the Abyei oil fields, will be contentious 
issues.  Finalization of the MTE by July 9 is an ambitious 
undertaking.  This is all the more so in view of the SPLM's 
limitations with respect to capacity.  We expect that one of the 
most difficult problems in the weeks ahead will be ensuring SPLM 
representation.  GNU Minister Kosti Manibe is often the SPLM's 
one-man show on AEC issues, but he is spread thin.  In fact, we 
encountered some resistance getting him to commit to the March 5 
meeting if none of his other colleagues was available.  The 
Norwegian Government's offer to fund an SPLM cadre to devote 
full-time attention to AEC issues may help resolve this problem, but 
it is unclear when that step will be implemented, and will not 
substitute for active engagement by the SPLM.  What is clear is that 
the SPLM needs to identify a capable deputy for Manibe, a point 
which we will make directly with the SPLM. 
 
FERNANDEZ