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Viewing cable 09PHNOMPENH816, ENCOURAGING CENTRAL GOVERNMENT BUDGET TRANSPARENCY

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Reference ID Created Released Classification Origin
09PHNOMPENH816 2009-10-30 09:21 2011-07-11 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Phnom Penh
VZCZCXYZ0006
PP RUEHWEB

DE RUEHPF #0816 3030921
ZNR UUUUU ZZH
P 300921Z OCT 09
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC PRIORITY 1327
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0821
UNCLAS PHNOM PENH 000816 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS AND EEB/IFD/OMA - B. SAUNDERS 
 
E.O. 12958: N/A 
TAGS: PREL EFIN EAID ECON CB
SUBJECT: ENCOURAGING CENTRAL GOVERNMENT BUDGET TRANSPARENCY 
 
REF: STATE 81177 
 
SENSITIVE BUT UNCLASSIFIED 
 
1.  (SBU) SUMMARY:  Pol/Econ Chief October 22 delivered 
reftel demarche to the Ministry of Economy and Finance 
(MoEF), reiterating that improvements in budget transparency 
would be a key focus in future years.  The MoEF highlighted 
the ministry's diligent implementation of the Public 
Financial Management Reform (PFMR) program as a positive 
development, as well as growing cooperation with the National 
Assembly, the Ministry of Planning and the line ministries. 
However, the lack of capacity to implement a transparent 
national budget that conforms in all respects with 
international standards remains a major obstacle for the 
Cambodian government.  The MoEF acknowledged its recent 
agreement to receive technical assistance from a U.S. 
Treasury advisor on the budget, and promised to coordinate 
closely on developments in the national budget planning and 
implementation process. END SUMMARY. 
 
2.  (SBU) Pol/Econ Chief highlighted the concern for both 
budget income and expenditures, given that Cambodia takes at 
least two years to account for budget expenditures.  Chan 
Sothy, Director of the MoEF Department of Investment and 
Cooperation, took on board the need to achieve concrete 
improvements in budget transparency and highlighted recent 
efforts in the PFMR, Phase 2, which was launched in December, 
2008 for another five years.  Chan observed that Cambodia had 
only emerged from conflict in 1998 and that the Khmer Rouge 
in the mid-1970s had eradicated the country's capacity to 
deal effectively with a national budget.  Nonetheless, he 
asserted that the RGC was committed to budget transparency 
and would provide the Embassy with information about its 
progress. 
 
3.  (SBU)  COMMENT:  This demarche was coordinated closely 
with a newly arrived U.S. Treasury Officer who will be 
working directly with the MoEF on budget issues.  We have 
received excellent initial cooperation from the MoEF since 
the technical advisor's arrival on October 19.  We expect to 
see continued good cooperation from the MoEF in the months 
ahead, and an accurate report of the challenges Cambodia 
faces in achieving budget transparency and the iterative 
improvements made in reaching that goal. 
RODLEY