VZCZCXRO2779
OO RUEHGI RUEHMA RUEHROV RUEHTRO
DE RUEHKH #0730/01 1590739
ZNR UUUUU ZZH
O 080739Z JUN 09
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3919
INFO RUCNFUR/DARFUR COLLECTIVE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE
RHMFISS/CJTF HOA
RUEHBS/AMEMBASSY BRUSSELS 0066
RUCNDT/USMISSION USUN NEW YORK 0323
RUEHGV/USMISSION GENEVA 0138
RUEHSUN/USUN ROME IT

UNCLAS SECTION 01 OF 03 KHARTOUM 000730 
 
DEPT FOR SE GRATION, S/USSES, AF A/S CARSON, AF/C 
NSC FOR MGAVIN 
DEPT PLS PASS USAID FOR AFR/SUDAN 
ADDIS ABABA ALSO FOR USAU 
BRUSSELS FOR PBROWN 
GENEVA FOR NKYLOH 
UN ROME FOR HSPANOS 
NEW YORK FOR DMERCADO 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ASEC PGOV PREL KPKO SOCI AU UNSC SU
SUBJECT: NGO AFFILIATES UPDATE 
 
REF: A) KHARTOUM 593 
 
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SUMMARY 
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¶1.  (SBU) Since mid-May, European affiliates of three expelled U.S. 
non-governmental organizations (NGOs) have begun official procedures 
to commence (or expand, in the case of one of the affiliates) 
humanitarian operations in Sudan in line with agreements reached 
with the USG.  On June 4, U.S. Embassy and USAID staff met with 
Government of National Unity (GNU) Ministry of Foreign Affairs (MFA) 
and Humanitarian Aid Commission (HAC) officials to discuss progress 
on the implementation of the Special Envoy's early April framework 
and outstanding points of contention.  Despite initial delays, 
implementation of the "affiliate arrangement" has started to gain 
momentum since late May, with the government issuing eight visas for 
NGO advance teams and agreeing to process affiliate registrations 
within seven days of official receipt. 
 
¶2.  (SBU) However, Post notes several points of disagreement between 
U.S. and GNU officials on elements of the framework, namely the 
timeframe that staff who previously worked for expelled NGOs can 
work in Sudan and the disposition of expelled NGO assets.  GNU 
officials view the Special Envoy's framework as only applying to the 
transfer of U.S.-funded assets from American NGOs to affiliates or 
remaining NGOs, an interpretation that Embassy and USAID officials 
reject.  Post plans to continue to raise these concerns with GNU 
officials during weekly monitoring meetings to ensure that affiliate 
NGOs can commence operations as quickly as possible to meet 
humanitarian needs.  End Summary. 
 
-------------------------------------- 
Tracking the Special Envoy's Framework 
-------------------------------------- 
 
¶3.  (SBU) On May 31, MFA and HAC officials met with Embassy 
officers, including USAID, to review progress on the Special Envoy's 
framework.  The framework - termed an "agreement" by the GNU - 
permits inter alia the three largest expelled U.S. NGOs - CARE, Save 
the Children/U.S. (SC/US), and Mercy Corps - to provide their 
experience and resources to a fully-independent, but affiliated, NGO 
that would register as a new organization  (or that is already 
registered in the case of one) in Sudan.  During an earlier  meeting 
that same day,  Embassy and USAID staff noted a number of 
outstanding issues suggesting that the GNU was not meeting 
commitments, including delays issuing visas for NGO assessment 
teams, lack of clarity on registration timelines, and the 
disposition of expelled NGOs' assets.  The GNU agreed to consult at 
higher-levels (through the intervention of Presidential Advisor Dr. 
Ghazi Salahudin with HAC and presumably with the National 
Intelligence and Security Service --NISS) during the week, after 
which the group reconvened on June 4 to review progress. 
 
--------------------------------------------- - 
NGO Registrations - GNU Agrees to "Fast-Track" 
--------------------------------------------- - 
 
¶4.  (SBU) On  June 4,  Director of the GNU HAC NGO Section and 
Director General of the Joint Procedures Center Ahmed Adam reported 
that the HAC had received the Mercy Corps affiliate's official 
registration packet and planned to finalize the registration "within 
three or four days," placing the deadline for completion on or 
around June 7.  Adam said t once the HAC receives the CARE 
affiliate's official registration packet in Khartoum, the government 
will complete the registration process within seven days.  (Note: 
CARE submitted the package to the Sudanese Embassy in Geneva on June 
¶3.  End Note.)  Adam's commitment to process registrations within 
seven days of official receipt is a significant development; during 
previous  meetings, the HAC said  affiliate NGO registration would 
take two months, as "agreed during the May discussions with Dirk 
Dijkerman." 
 
¶5.  (SBU) However, registration is only the first step for the NGOs 
to become operational.  Following registration, affiliate NGOs will 
have to negotiate country agreements, as well as technical 
 
KHARTOUM 00000730  002 OF 003 
 
 
agreements (TAs).  (Note:  Regarding the fourth expelled 
organization in the Special Envoy's framework, AECOM, USAID and the 
GNU Ministry of International Cooperation have agreed to sign an 
Implementation Protocol on June 8 following approvals from the 
governors in the Three Areas, which would allow AECOM to immediately 
begin implementing its vital on-going recovery and conflict 
resolution programs in the Three Areas.  End note.)  TAs can take 
considerable time to negotiate and finalize at the state and federal 
levels, and provide the basis for determining authorized staff 
levels and assets for NGO programs.  As such, program staff cannot 
obtain entry visas without the inclusion of an approved TA.  Per Ref 
A, as part of the "Sudanization" of humanitarian programs announced 
by Sudanese President Omar al-Bashir in March, the HAC is requiring 
NGOs to partner with a local NGO in addition to line ministries.  To 
date, the HAC has refused to sign  TAs for least two USAID NGO 
partners due to lack of an identified local NGO partner. 
 
-------------------------------------------- 
Visas for Advance Teams:  Two Steps Forward? 
-------------------------------------------- 
 
¶6.  (SBU) From  May 12- 28, affiliate staff from SC, CARE, and Mercy 
Corps submitted initial entry visa applications for advance teams to 
conduct assessments and commence program start-up procedures. 
However, until mid-May, this process stalled, with NGO staff unable 
to obtain visas.  However, following intervention by Special Envoy 
Gration at high-levels of government, the process has begun to 
proceed rapidly.  During May 28-June 2, the government issued visas 
to six SC staff and 3 CARE staff, and since May 29, four of the SC 
staff and two of the CARE staff have arrived in Sudan.  On May 31, 
the HAC informed CARE that the government would expeditiously 
process the visas for the remaining CARE affiliate staff who have 
not previously worked in Sudan.  On June 4, the HAC confirmed this 
to Embassy and USAID staff, adding that visas would also be approved 
for Mercy Corps staff in Nairobi and Washington.  The HAC and MFA 
noted that security had "black-listed" all individuals who had 
previously worked for explelled NGOs in Sudan  They said  such staff 
could only work in Sudan on a temporary basis pending  visa 
approval.  Embassy representatives noted the framework did not 
specify a limited timeframe for such NGO  staff to work in Sudan. 
They underscored the framework's intention was to allow staff with 
critical expertise and/or technical skills to assist affiliates to 
implement programs.  USG and GNU officials agreed to raise this 
issue with their respective authorities. 
 
------------------------------------ 
Transfer of Assets:  Two Steps Back? 
------------------------------------ 
 
¶7.  (SBU) On the issue of disposition of expelled NGO assets, the 
HAC reported that for the purposes of the Special Envoy's framework, 
the government was focused only on the transfer of U.S.-funded 
assets from American agencies, including SC/US, CARE, Mercy Corps, 
CHF International, the International Rescue Committee, and 
PADCO/AECOM, to European affiliates or remaining NGOs.  However, 
USAID also funded French NGOs Action Contre La Faim and 
Solidarities.  USAID grant regulations also apply to the disposition 
of these two NGOs' assets.  Under their interpretation of the 
agreement, GNU counterparts insisted that only U.S. NGO assets would 
be considered as a part of the framework, and noted that the HAC 
would decide on the transfer of assets from one NGO to another 
through TAs.  After considerable discussion of USAID grant 
requirements, the government agreed to be "flexible" on this issue. 
 
 
¶8.  (SBU) In addition to discussing U.S.-funded assets, USG 
officials underscored that the disposition of assets is an issue for 
other donors, and noted that Special Envoy Gration's intention was 
to include other donors and the UN in the issues discussed.  In 
response, the MFA welcomed other donors to take the same initiative 
as the USG and "send their own special envoys."  In this regard, 
four major donors, the U.S., United Kingdom, Canada, and the 
European Commission have come together to submit a letter of concern 
regarding the disposition of assets and severance payments following 
the early March expulsions.  On May 27, the donors signed the letter 
and subsequently delivered a note verbale to the MFA, requesting a 
 
KHARTOUM 00000730  003 OF 003 
 
 
meeting with the Ministry of Humanitarian Affairs (MHA) to present 
and discuss the contents of the letter.  However, the MHA has 
refused to meet with all donors at the same time, requesting 
separate bilateral discussions instead.  For their part, donors are 
insisting on a group meeting to address this issue. 
 
-------------------------- 
Building National Capacity 
-------------------------- 
 
¶9.  (SBU) With regard to the USG's commitments under the framework, 
MFA and HAC officials raised the issue of building Sudanese national 
capacity.  Adam noted that Sudanese Presidential Advisor and new 
Darfur Coordinator Dr. Ghazi Salahudin had requested clarification 
on how the USG intends to build this capacity, and inquired whether 
capacity building could occur through transfer of assets to 
government institutions.  (Note:  In a subsequent meeting with the 
USAID Mission Director, HAC Commissioner-General Hassabo Mohamed 
Abdelrahman and Ahmed Adam also raised th)s issue, noting that the 
HAC plans to provide USAID a proposal on building national capacity. 
 End Note.) 
 
-------- 
Comment 
-------- 
 
¶10.  (SBU)   After standing idle for approximately two weeks (while 
the GOS reviewed and finally approved public talking points 
explaining that affiliates of expelled NGOs would be entering Sudan 
to begin providing humanitarian assistance) some positive movement 
on the Special Envoy's framework is taking shape, namely on the 
issuance of initial entry visas for advance teams and affiliate NGO 
registrations.  In addition, Dr. Ghazi Salahudin has reacted quickly 
to feedback received from the Special Envoy's office and tasked his 
colleagues in the HAC and MFA to implement the specifics of the 
framework expeditiously.    Per the framework understanding with the 
GNU, assets should be transferred not only from expelled American 
NGOs, but also from all expelled U.S.-funded NGOs to remaining NGOs 
and/or affiliates.  Adam's assertion that assets would only be 
transferred to affiliates based on the size of the proposed program 
poses a further concern, as it allows the HAC the freedom to 
interpret which assets are essential for NGO operations and could 
possibly lead to further delays in commencing operations.  Despite 
Adam's parting assurance that the HAC will be flexible on the 
question of seized assets, this issue will require additional 
follow-up to ensure that the affiliate NGOs will have the resources 
they need to quickly commence operations once they have 
international and local staff in place. 
 
WHITEHEAD