VZCZCXRO9259
PP RUEHDBU RUEHPW
DE RUEHBUL #0922/01 1041237
ZNR UUUUU ZZH
P 141237Z APR 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 8370
INFO RUCNAFG/AFGHANISTAN COLLECTIVE PRIORITY

UNCLAS SECTION 01 OF 02 KABUL 000922 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: KDEM PGOV PREL AF
SUBJECT: ELECTION CAMPAIGN FINANCE REGULATIONS 
 
¶1. (U) SUMMARY: The Independent Election Commission (IEC) on 
March 25, released the regulation on campaign financing for 
the August 2009 presidential and provincial council 
elections.  The regulation limits who can contribute, and 
lays out clear guidelines on how candidates must track 
incoming and outgoing cash flows. The regulations also 
promote transparency by requiring use of the formal banking 
sector and require a level playing field for GIRoA resources. 
This new regulation is a substantial improvement over its 
counterparts for the 2004 and 2005 elections.  The as-yet 
missing element in the 2009 regulation is an enforcement 
mechanism, now under discussion with the newly-formed 
Electoral Complaints Commission (ECC).  END SUMMARY. 
 
THE ELECTORAL LAW: NOT ENOUGH ON ITS OWN 
---------------------------------------- 
 
¶2.  (U) The current regulation expands on Article 53 of the 
Electoral Law, which details electoral offenses.   Article 53 
details finance-related electoral offenses as: offering or 
receiving payment or other benefit for the purpose of 
influencing the electoral process; making use of funds 
originating from illegal activities; and making use of 
foreign funds for the purpose of influencing the electoral 
process. Article 53 does not address mechanisms to create a 
system for tracking contributions or articulate enforcement 
mechanisms. 
 
SPELLING OUT WHO CAN CONTRIBUTE 
------------------------------- 
 
¶3.  (U) Under the 2009 regulation, only individual Afghan 
citizens and political parties registered with the Ministry 
of Justice and endorsing at least one candidate are eligible 
to contribute to campaigns.  At this time around 100 
political parties are registered and more may register before 
the election.  The regulation treats loans for use in a 
campaign as contributions and values donations of goods or 
services at the market worth of the gift.  The regulation 
highlights that any government support or provided public 
resources must be equally available to all candidates.  It 
defines public resources as "funds, materials, equipment, 
services, facilities, and property, including paid time and 
services provided by public employees or by the people 
employed by the government." Candidate security is 
specifically not considered a campaign contribution. 
 
REQUIRING CLEAR RECORD KEEPING 
------------------------------ 
 
¶4.  (U) The new regulations place significant emphasis on 
pushing campaign finance into public view and the formal 
banking sector.  The IEC will publish the names of 
individuals who donate over 50,000 Afs (USD 1057) on the IEC 
website to ensure visibility on the source of funding. 
Before the campaign period opens on June 16, each candidate 
must designate a financial agent to the IEC and open a bank 
account specifically for campaign funds.  Details of the 
account, which cannot overlap with others the candidate may 
hold, must be provided to the IEC.  Candidates must deposit 
monetary contributions exceeding 5000 Afs (USD 105) and pay 
expenses over that amount from the account. 
 
¶5.  (U) After voting day, candidates will have up to 30 days 
to submit a report tracking all incoming and outgoing funds 
used by their campaign.  Failure to submit a complete report 
is an electoral offense subject to the ECC which may prevent 
standing in future elections, but does not specify whether 
failure to report will disqualify a victor from taking 
office.  For contributions over 5000 Afs, reports must note: 
1) the actual amount, or for goods and services, market 
value; 2) the date of receipt; 3) the name and contact 
information of the contributor; 4) the nature of the 
contribution. Every expense of more than 5000 Afs must show: 
1) the expense amount; 2) the date of payment; 3) an 
explanation of the cost; 4) the name and contact information 
of the recipient.  Information about contributions and 
expenses valued at less than 5000 Afs should be provided in a 
consolidated report of all such contributions and should be 
accompanied by an original logbook. All reports must be 
accompanied by receipts. 
 
PROGRESS SINCE 2004, 2005 
------------------------ 
 
¶6.  (U) In 2004, the campaign finance regulation was 
introduced late, just prior to the campaign period. For the 
2005 elections, the Joint Electoral Management Body (JEMB) 
issued guidelines limiting the amount candidates could spend 
during electoral campaigns and requiring candidates to 
document and keep a record of all campaign incomes and 
expenditures.  With some 6000 legislative candidates, the 
 
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JEMB never conducted a systematic review to determine 
compliance with the regulation.  The JEMB final report on the 
2005 elections recommended for greater monitoring, including 
random checks, of campaign financing. 
 
 
STILL MORE WORK TO DO 
--------------------- 
 
¶7.  (SBU) We will continue to work with the IEC and the ECC 
on articulating the investigation and enforcement mechanisms 
and planning for a transparent assessment process.  In any 
case, government oversight and regulation of the formal 
banking sector requires strengthening in order to ensure a 
sound and transparent financial system.  Ultimately, the 
success of the regulations will lay with how well the ECC 
implements a careful review of campaign interactions and how 
well the courts enforce the electoral law. 
RICCIARDONE