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Viewing cable 09PORTAUPRINCE265, AMBASSADOR HOSTS DISCUSSION OF CORRUPTION

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Reference ID Created Released Classification Origin
09PORTAUPRINCE265 2009-03-10 17:19 2011-08-26 00:00 UNCLASSIFIED Embassy Port Au Prince
VZCZCXRO5474
OO RUEHQU
DE RUEHPU #0265/01 0691719
ZNR UUUUU ZZH
O 101719Z MAR 09
FM AMEMBASSY PORT AU PRINCE
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9719
INFO RUEHZH/HAITI COLLECTIVE
RUEHBR/AMEMBASSY BRASILIA 2245
RUEHMN/AMEMBASSY MONTEVIDEO 0330
RUEHSA/AMEMBASSY PRETORIA 1987
RUEHMT/AMCONSUL MONTREAL 0383
RUEHQU/AMCONSUL QUEBEC 1368
RUEATRS/DEPT OF TREASURY WASHDC
RUCOWCV/CCGDSEVEN MIAMI FL
RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL
UNCLAS SECTION 01 OF 02 PORT AU PRINCE 000265 
 
SIPDIS 
 
STATE FOR WHA/CAR, DRL, S/CRS, INR/IAA 
SOUTHCOM ALSO FOR POLAD 
STATE PASS AID FOR LAC/CAR 
TREASURY FOR MAUREEN WAFER 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM ECON HA
SUBJECT: AMBASSADOR HOSTS DISCUSSION OF CORRUPTION 
 
REF: PORT AU PRINCE 065 
 
PORT AU PR 00000265  001.2 OF 002 
 
 
1. (SBU) Summary: Government and civil society 
epresentatives at an Ambassador-hosted discussion oncurred 
that corruption in Haiti is ubiquitous nd requires stiffer 
laws, expanded education andtraining, partnership between 
the government and private sector, ongoing civil society 
involvement and continuing help from foreign donors.  End 
smmary. 
 
2. (SBU) The Ambassador hosted a lunch a her residence 
January 28 to discuss anti-corrupion efforts with 
representatives from the governmnt, the private sector, and 
NGOs.  Present were mos Durosier, General Director of the 
Anti-Corrution Unit (ULCC) of the Ministry of Economy and 
Finance; Jean-Ostricht Hercules, Director of the Financial 
Intelligence Unit (UCREF) of the Ministry of Justice and 
Public Security; mango exporter Bernard Craan; Kesner Pharel, 
economic journalist and radio talk-show host; Marilyn Allien, 
Director of the Heritage Foundation for Haiti (the Haitian 
arm of Transparency International); and Anthony Pascal, Head 
of the Citizen Observatory of Government Action.  Joining the 
Ambassador from the Embassy were the Political and Economic 
Counselors and the head of USAID's Office for Governing 
Justly and Democratically (GJD). 
 
3. (SBU) Allien of Heritage observed that bribery occurred at 
all levels of government and the economy, including in public 
schools.  Her foundation is encouraging the use of government 
identification badges as a deterrent to corruption.  Citizens 
should be able to identify officials against whom they lodged 
complaints of corruption.  Bernard Craan noted that Haitian 
parents with children in public schools spend 40 percent of 
their income on education.  This private sector leader 
admitted there is a high level of tax evasion in Haiti. 
Craan recalled that the private sector in late 2007 had 
proposed to President Preval an incentive plan to induce tax 
delinquents to pay up.  The government would give businesses 
one year to declare and pay back taxes on their concealed 
past income, plus a penalty lower than that prescribed by 
current law.  Following that one-year grace period, the 
government would investigate vigorously and impose a penalty 
higher than the current legal level on tax delinquents.  The 
private sector had also proposed a 20 percent flat income tax 
rate to encourage greater tax compliance by individuals. 
 
4. (SBU) Craan disputed Anthony Pascal's assertion that 
corruption resulted from low salaries and mass unemployment. 
(Note: Unemployment in Haiti is estimated at anywhere between 
60 and 90 percent, depending upon whether one includes 
informal sector activities as employment. End note.)   Craan 
believed that corruption was the product of weak state 
institutions that posed no effective counterweight to the 
strong private sector.  The most damaging institutional 
weakness lay in the judiciary.  Journalist Pharel referred to 
the draft anti-corruption bill that had yet to be submitted 
to the legislature, which would define and establish specific 
penalties for acts of corruption.  Jean-Ostrict Hercules of 
UCREF said that it was fine to improve the law, but 
enforcement of existing Haitian laws remained generally weak. 
 The corruption ''crisis'' was systemic.  Raising the 
salaries of judicial officials would not in itself reduce 
corruption.  Haiti needed the political will to reform the 
judicial system and exert consistent pressure on all sectors. 
 He claimed that the 1987 constitution subordinated the 
judicial system to the executive branch.  The government used 
the ''good conduct discharge'' which all judges are required 
to obtain after leaving office to pressure judges: the latter 
knew the government could fabricate evidence of financial or 
other wrongdoing after they left office if they resisted 
pressure to decide cases as the government wanted. 
 
5. (SBU) Journalist Kesner Pharel said that an independent 
press was a critical control mechanism against corruption, 
and that Haiti's press needed to be stronger.  He conceded 
that trying cases in the Haitian press was not fair to the 
accused.  Anthony Pascal pointed out that Haiti's criminal 
code dated from 1935 and needed reform to take account of 
modern forms of corruption.  The USAID GJD Section head noted 
 
PORT AU PR 00000265  002.2 OF 002 
 
 
the importance of civil society initiatives:  people had 
organized demonstrations that had helped Parliament pass 
anti-kidnapping legislation, and something similar was needed 
for corruption.  ULCC Director Durosier argued that Haiti 
needed a change in the mentality that tolerated corruption. 
Haiti needed laws to raise the costs of corrupt acts.  The 
country should implement ''control mechanisms'' to check 
corruption, give civil servants anti-corruption training, and 
educate students against corruption in education, i.e. the 
widespread practice of cheating. 
 
6. (SBU) Bernard Craan replied that Haiti needed not just new 
laws but long-term reform of institutions and a state-private 
sector ''national pact'' against corruption.  Durosier of 
ULCC said his organization had completed an anti-corruption 
strategy for 2010-18, which they had discussed with 
stakeholders and submitted to the government.  ULCC was 
awaiting World Bank review and approval of 10 project 
documents contained in the strategy.  Hercules noted that 
with the help of USAID, UCREF had installed an Integrated 
Financial Management System (IFMS) in 43 separate government 
offices in Port-au-Prince, which gave ULCC the ability to 
track government expenditures, including those of the 
Presidency. 
 
7. (SBU) Durosier went on to say that the World Bank had 
recommended contracting the Basel Institute on Governance to 
provide GOH officials anti-corruption training.  The main 
recipients would be judges and prosecutors, few of whom were 
currently capable of handling a corruption case.  Haiti's 
Magistracy School needed to introduce a core course on 
corruption.  The ULCC would also compile a compendium of all 
Haitian laws pertaining to corruption.  Finally, it would 
continue its anti-corruption public awareness campaign. In 
relation to Haiti's asset disclosure law for public 
officials, Durosier noted that his office had received only 
113 asset declarations thus far, including only one from a 
member of parliament.  (Note: we do not know the total number 
of officials subject to this law.  End note.) 
 
8. (SBU) The Ambassador noted that anti-corruption programs 
such as the IFMS would continue as a core element of USG 
assistance to Haiti. 
 
9. (SBU) Comment:  The USG is currently investing USD 4.7 
million in FY 06, 07, and 08 funds in 1) continuing and 
expanding the IFMS that involves the GOH, private sector and 
USG; 2) providing substantial support to the Heritage 
Foundation for Haiti, and 3) extending small grants for 
innovative civil society proposals that combat corruption and 
promote public accountability. 
SANDERSON