VZCZCXRO6072
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMR RUEHRN
DE RUEHKI #0961 2941443
ZNR UUUUU ZZH
R 211443Z OCT 09
FM AMEMBASSY KINSHASA
TO RUEHC/SECSTATE WASHDC 0239
INFO RUCNSAD/SADC COLLECTIVE
RUEHXR/RWANDA COLLECTIVE
RUEATRS/DEPARTMENT OF TREASURY WASHINGTON DC

UNCLAS KINSHASA 000961 
 
SENSITIVE 
SIPDIS 
 
EEB/IFD/OMA FOR BSAUNDERS 
 
E.O. 12958: N/A 
TAGS: EAID ECON EFIN PREL CG
SUBJECT:    DEMARCHE DELIVERED: ENCOURAGING CENTRAL 
            GOVERNMENT BUDGET TRANSPARENCY 
 
REF:        (A) STATE 98111; 
        (B) KINSHASA 320 
 
¶1.  Econcouns delivered ref A points on October 15 jointly to the 
Ministry of Finance's Chief of Staff, Georges Wembi Loambi, and the 
Ministry of Budget's Deputy Chief of Staff, Onesime Kukatula. 
Neither GDRC official was aware of the restrictions contained in the 
FY 2009 Appropriations Act concerning budget transparency, but spoke 
at length regarding continuing efforts by the GDRC to improve both 
budget transparency and overall public financial management. 
 
¶2.  (SBU) Kakutula provided EconCouns with an extensive overview of 
the budget formulation and execution process, stressing that 
transparency was ensured through a number of instruments and 
policies.  The budget, Kakutula noted, has its basis in the DRC's 
broader development framework, including the government's Poverty 
Reduction Strategy Paper (PRSP) and President Kabila's Cinq 
Chantiers (or priority areas).  These in turn are implemented 
through the GDRC's Priority Action Plan (PAP).  This framework was 
developed in coordination with international partners and civil 
society.  The drafting of the budget, overseen by the Ministry of 
Budget, includes participation from all stakeholders: ministries, 
other public agencies, and civil society.  Information on the draft 
budget is available through a number of public documents, including 
manuals and circulars that explain the procedures.  In addition, a 
general summary of the draft budget (Expose General du Project du 
Budget de L'Etat, in French) is published annually and widely 
available. 
 
 
¶3.  (SBU) Once approved by the Council of Ministers, the budget is 
submitted to the National Assembly for debate. (Note:  Opposition 
members raised tough questions of the Prime Minister about the 
execution of the 2009 budget during this year's National Assembly 
debate on the budget.  Post will report septel on the draft 2010 
budget.  End note.)  The budget is publically available both in 
print form and on the Ministry of Budget's website. The Ministry of 
Budget is required by law to submit quarterly reporting on the 
execution of the budget to the National Assembly. 
 
¶4.  (SBU) Improving the transparency and efficiency of public 
financial management remains a priority for the GDRC.  In early 
2009, the GDRC launched an inter-ministerial Working Group on Public 
Finance Reform (Comite d'Orientation des Reformes des Finances 
Publiques or COREF, in French) to support the implementation of key 
public finance reforms.  A number of donors, led by the World Bank, 
are supporting enhanced public financial management, including 
improved budget transparency and execution. In addition, the IMF is 
working closely with the GDRC to improve public spending, which is 
reported monthly to the IMF. A coordination committee has been 
established by the Ministry of Finance and the Congolese Central 
Bank to ensure harmonization of expenditures.  A number of specific 
reforms to improve public financial management, including specific 
actions on budget formulation and execution, will be included in a 
new IMF Poverty Reduction and Growth Facility (PRGF), now 
anticipated to be approved in November. 
 
¶5.  (SBU) Comment:  The GDRC, with support from donors, has taken a 
number of important steps to improve the public financial 
management, including enhanced transparency and efficiency of the 
budget process.  The Deputy Chief of Staff is correct to note that 
the budget is publically available and that the process is largely 
Qthe budget is publically available and that the process is largely 
participatory.  The challenge within public financial management 
lies more with the government's limited capacity to effectively 
execute the budget as well as coordinate among what is an unwieldy 
bureaucracy.  These are areas where donors, including the United 
States, continue to support the GDRC in its efforts to implement 
these critical reforms. 
End comment.