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Viewing cable 09KHARTOUM428, ADDING INSULT TO INJURY - GNU DEMANDS EXORBITANT SEVERANCE

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Reference ID Created Released Classification Origin
09KHARTOUM428 2009-03-26 15:06 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Khartoum
VZCZCXRO0861
OO RUEHGI RUEHMA RUEHROV RUEHTRO
DE RUEHKH #0428/01 0851506
ZNR UUUUU ZZH
O 261506Z MAR 09
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3375
INFO RUCNFUR/DARFUR COLLECTIVE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE
RHMFISS/CJTF HOA
UNCLAS SECTION 01 OF 04 KHARTOUM 000428 
 
DEPT FOR AF A A/S CARTER, SE GRATION, AF/SPG, AF/E, IO, PRM 
NSC FOR MGAVIN AND CHUDSON 
DEPT PLS PASS USAID FOR AFR/SUDAN, USAID/W DCHA SUDAN 
ADDIS ABABA ALSO FOR USAU 
 
SENSITIVE 
AIDAC 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID ASEC PGOV PREL PREF KPKO SOCI AU UNSC SU
SUBJECT: ADDING INSULT TO INJURY - GNU DEMANDS EXORBITANT SEVERANCE 
PAY FROM EXPELLED NGOS 
 
REF: A) KHARTOUM 405 
     B) KHARTOUM 318 
     C) KHARTOUM 313 
     D) KHARTOUM 311 
     E) KHARTOUM 306 
     F) KHARTOUM 299 
 
--- --- 
SUMMARY 
--- --- 
 
1. (SBU) BEGIN SUMMARY.  On March 22, the Government of National 
Unity (GNU) Ministry of Labor issued a "ministerial decree," arguing 
that expelled non-governmental organizations (NGOs) had infringed on 
laws and regulations regarding the humanitarian work in Sudan (an 
accusation used by the Humanitarian Aid Commission to justify its 
expulsion of 13 INGOs), and ordering the expelled agencies to pay an 
additional six months of severance pay to local Sudanese staff. 
NGOs estimate that paying an additional six months on top of the 
severance required by law would cost NGOs approximately $60 million 
dollars.  Noting the potential precedent the payments would set, 
partners encourage a swift and coordinated donor response.  Post 
continues to engage with UN staff and NGOs at field and headquarters 
levels and monitor the situation closely.  END SUMMARY. 
 
--- --- --- --- --- --- --- --- --- --- --- --- -- -- -- 
THE GNU EXPANDS ITS HORIZONS OF HARASSMENT AND EXTORTION 
--- --- --- --- --- --- --- --- --- --- --- --- -- -- -- 
 
2. (SBU) In a March 19 letter from the GNU Ministry of Labor, the 
Sudanese government cited the expelled NGOs for infringing on laws 
and regulations controlling the humanitarian work in Sudan and 
decreed that the expelled agencies pay an additional six months of 
severance pay, due to aggressive termination of Sudanese staff. 
(NOTE:  According to NGOs, it remains unclear whether the payment 
applies to all staff, including staff employed on a fixed-term basis 
or staff receiving ad hoc incentives, and the aid agencies are 
afraid to ask for clarification.  END NOTE.)  Since early March, the 
GNU Humanitarian Aid Commission (HAC) also has insisted that 
organizations provide severance funds to the GNU HAC for 
distribution to local staff and encouraged Sudanese staff members to 
demand additional severance pay from the organizations.  As a 
result, NGOs report a growing hostility from national staff towards 
managers, both international staff members and national field 
coordinators acting on behalf of the partners in remote locations. 
Fueled by the GNU HAC and Labor Office, some national staff believe 
that managers are deliberately resisting payment of the additional 
severance because the latter are "thieves" or are reluctant to pay 
what the staff believe the organizations rightly owe them.  (NOTE: 
Field staff report a general presumption from the GNU HAC and 
national staff that the NGOs are infinitely resourced and paying the 
additional severance will have little consequence.  END NOTE.) 
Noting the potential precedent and lasting impact such a decision 
could have on remaining humanitarian, transition and development 
operations throughout Sudan, implementing partners encourage a swift 
and coordinated response, particularly to prevent individual 
organizations from making decisions that will impact the entire 
foreign assistance community throughout Sudan for the near future. 
 
 
3.  (SBU) The INGO Steering Committee estimates that the GNU 
decision will cost NGOs a total $60 million for severance payments 
(in addition to an estimated $40 million in seized and stolen 
assets.)  Some NGOs report that the new requirements will render 
their organizations insolvent resulting in forcing them to file for 
bankruptcy in Sudan.  This would  entitle the organizations to sell 
their program assets to pay off debts. (NOTE: This plan is 
problematic because the GNU continues to hold many of the project 
assets that organizations would need to sell in order to pay 
severance pay and other program close-out costs. UN DSRG Ameerah Haq 
told CDA Fernandez on March 26 that Sudan has now agreed to return 
at least some of the seized assets as soon as next week, over the 
objections of HAC, as a small concession to the UN.  END NOTE.) 
 
4.  (SBU) On March 23, the 13 expelled international organizations 
submitted a letter of appeal to the GNU HAC Registrar Ahmed Adam, 
protesting the GNU decision and highlighting the NGOs rights under 
current Sudanese law.  In addition, the organizations cited the 1997 
Sudanese Labor Law, which states that dissolution or liquidation of 
the entity is sufficient grounds for cancelling the contract of an 
employee according to the normal notice period, and does not 
constitute aggressive termination.  Finally, the NGOs underscored a 
commitment to compensate staff members for the abrupt loss of 
 
KHARTOUM 00000428  002 OF 004 
 
 
employment in accordance with the 1997 Labor Law and individual 
organizational policies.  They asked for GNU assistance in enabling 
the groups to make such severance payments without further delay. 
The March salaries are due for payment to local employees in the 
coming days.  However, although NGOs are prepared to pay the month's 
salary, GNU HAC staff at each agency are refusing the organizations' 
efforts to pay staff, believing that the GNU Ministry of Labor 
decision is legally binding.  While expressing a formal but polite 
appeal to the GNU, NGOs were also very clear that the termination of 
their program operations was beyond the organizations' control, as 
it had been taken in direct response to an order from the Sudanese 
government.  Following receipt of the appeal, Adam will decide 
whether to implement the GNU Ministry of Labor decree or to overturn 
the ruling.  (NOTE: In a conversation with the USAID Legal Advisor, 
a prominent Sudanese attorney agreed that that additional six-months 
severance payment is not consistent with the Labor Act of 1997 as 
applied to this case.  He explained that the termination was an "act 
of state" and not an illegal termination as asserted by the Ministry 
of Labor.  He added that, although it pre-dates the current labor 
law, the termination of workers in the brewing industry in 1983 when 
the Government banned alcoholic beverages may provide some 
precedent.  The attorney was not very optimistic, however, that an 
appeal would succeed, and he admitted that Sudanese courts, while 
generally adhering to rule of law in cases involving two private 
parties, are unlikely to rule against the GNU. END NOTE) 
 
--- --- --- --- --- --- --- --- --- --- -- - 
USAID STAFF MEET WITH NGO STEERING COMMITTEE 
--- --- --- --- --- --- --- --- --- --- -- - 
 
5. (SBU) On March 23, USAID staff met with Mark Simmons, chair of 
the NGO Steering Committee to discuss the current situation and USG 
efforts to assist the organizations.  According to Simmons, the GNU 
letter directly accused NGOs of "infringement on laws and regulation 
controlling the humanitarian work in Sudan" and noted that the 
infringement led to termination of contracts.  (NOTE:  Because the 
letter directly accused NGOs of breaking Sudanese law, the 
organizations decided to fight the decision as they believe that to 
stay silent would have been equal to admitting guilt when the NGOs 
do not think they have violated Sudanese law.  In addition, partner 
staff note that the letter was the first occasion of the GNU's 
written accusations against the NGOs.  END NOTE.) 
 
6.  (SBU) NGOs argue the expulsions were a political rather than a 
legal decision.  On March 23, international media  noted NGO reports 
that the expulsions were pre-planned by the GNU, using the March 4 
International Criminal Court (ICC) announcement as a smoke-screen. 
Simmons pointed out that several of the expelled organizations had 
gender-based violence programs and had already been subjected to 
months of GNU harassment regarding those projects.  Simmons also 
highlighted instances of the GNU HAC contacting Sudanese staff of 
the expelled NGOs to encourage the employees to ask for an 
additional six months of severance pay from the organizations.  In 
addition, NGOs report that GNU officials have harassed two lawyers 
representing the organizations, and one of the lawyers departed 
Sudan as a result. 
 
7.  (SBU) According to NGO estimates, the new GNU policy of 
requiring NGOs to provide an additional six months on top of the 
base severance payment (in some cases up to 12 months of severance 
pay) will cost the NGOs and international donors up to $60 million 
for severance packages.  This is in addition to approximately $40 
million they estimate in lost program assets, if they are not 
returned.  (NOTE: Preliminary estimates by USAID indicate that, 
based on the figures provided by NGOs in the field, the severance 
pay decree could cost USAID upwards of $10 million.  USAID continues 
to conduct an analysis on the numbers, and will share additional 
information as it becomes available.  END NOTE.) 
 
8.  (SBU) Under Sudanese law, the humanitarian assets taken from 
NGOs must be transferred for humanitarian work.  Although the GNU 
HAC mandate includes humanitarian work, USAID staff note concerns 
that the close links between the GNU HAC and GNU security agencies 
mean that millions of dollars of humanitarian assets could be used 
to support the GNU security services.  Indeed, USAID staff caution 
that GNU HAC has become so closely linked to GNU National Security, 
particularly since early March, that a firm distinction would be 
very difficult to make. USAID staff are also concerned that much of 
the equipment taken by HAC is licensed by the U.S. Department of 
Commerce Bureau of Industry and Security (BIS). This includes such 
equipment as computers and software programs, GPS equipment, 
satellite phones and radios.  BIS requires that such licensed 
equipment be removed from the country or destroyed unless BIS 
 
KHARTOUM 00000428  003 OF 004 
 
 
approves its transfer. Post will be monitoring very closely to see 
if Minister Ahmed Haroun's assurance today to Ameerah Haq on this 
issue has any merit. 
 
9.  (SBU) In addition to holding NGO program assets, GNU HAC 
officials continue to demand that departing organizations deliver 
all severance pay to the GNU HAC, which will then transfer the funds 
to Sudanese staff members.  (NOTE: USAID staff and implementing 
partners are understandably skeptical and concerned about paying 
tens of millions of dollars to Sudanese government officials, who 
have not necessarily lived up to their commitments to date.  END 
NOTE.) 
 
---------------------- 
WHAT IS A DONOR TO DO? 
---------------------- 
 
10.  (SBU) Although NGOs understand that the international donor 
community is also somewhat paralyzed and dependent on the latest 
developments in an ever-changing situation, the organizations are 
looking to the donors for additional support, advocacy, and advice. 
If NGOs begin to pay severance pay, some NGOs anticipate problems 
delivering the severance to local staff in remote locations.  NGOs 
have asked U.N.-African Union Mission in Darfur (UNAMID) to deliver 
the money; however, UNAMID has declined to assist.  As a result, 
NGOs ask that international donors encourage the UN to facilitate or 
assist with such transfers. . 
 
11.  (SBU) Given the current situation, NGO staff hope to see the 
international donor community push back on the GNU's exorbitant 
severance pay demands, negative rhetoric, seizure of assets, and its 
control of remaining programs and partners.  The NGO Steering 
Committee suggested that donors issue a public statement confirming 
that the Minister of Labor's decree is not legally binding, thereby 
removing some of the pressure from NGO staff subjected to increased 
harassment and pressure from Sudanese colleagues.  Finally, NGO 
staff hope to see the international community advocate for the 
much-needed humanitarian programs and space throughout Sudan. 
(NOTE:  Because the UN's "Track One" does not officially conclude 
until April 3, donors must use caution regarding discussions with 
NGOs so as not to give the appearance of moving ahead too quickly. 
END NOTE.) 
 
--- --- 
COMMENT 
--- --- 
 
12.  (SBU) The question remains whether the international community 
and donors wish to continue supporting the life-saving operations in 
Sudan, or whether the operating environment is too treacherous and 
uncertain, and void of respect for humanitarian space and 
operations, to effect any positive change. If the international 
community and donors come to the latter conclusion, are they 
prepared for the likely steady deterioration in the humanitarian 
environment that will occur in Darfur and elsewhere in Sudan 
following the cut-off of such life saving assistance?  In recent 
days, the tone of engagement has shifted and NGO staff now find 
themselves subjected to intra-staff hostility rather than external 
forces including GNU security officials and other external actors. 
(NOTE: Thanks to ongoing inflammatory rhetoric, the GNU authorities 
have found alternative ways to continue to pressure NGO staff--now 
harassment is an "inside job" rather than one that requires direct 
engagement from government agencies. END NOTE.)  Should the 
international donor community wish to stay engaged in Sudan, the 
March 19 GNU letter offers an opportunity for international 
governments to engage on behalf of their citizens and their 
long-standing, well-funded aid operations.  When the Sudanese 
government confiscates an American staff member's passport or seizes 
a USAID partner's office and communication equipment, it is taking 
property that belongs to the US government.  If donors wish to stay 
in Sudan, the international community must develop conditions and 
standards that the GNU has to meet and continue to abide by, both 
for the safety of the aid workers, as well the people the agencies 
serve. Just such a question served as the topic of discussion in an 
initial core group donor meeting between Haq and key donors 
(including the U.S.) on March 25 (septel). 
 
13.  (SBU) Most tragically, the GNU's latest maneuver to essentially 
extort money from well-meaning donors and international 
organizations further denies the people in marginalized areas of 
Sudan $100 million dollars in life-saving health care, food, clean 
water, nutrition, and shelter that will be used to pay what is 
essentially a form of blackmail. While the regime has now softened 
 
KHARTOUM 00000428  004 OF 004 
 
 
its tone and taken some very minor steps back from its decision, the 
negative fallout of the expulsions continues. 
 
FERNANDEZ