VZCZCXRO6867
RR RUEHROV
DE RUEHKH #0571 1050752
ZNR UUUUU ZZH
R 140752Z APR 08 ZDK
FM AMEMBASSY KHARTOUM
TO RUEHC/SECSTATE WASHDC 0551
INFO RUCNIAD/IGAD COLLECTIVE
UNCLAS KHARTOUM 000571
SIPDIS
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL KSCA OTRA EAID CDC SU
SUBJECT: FFAMC CHAIRMAN UPBEAT ON CPA IMPLEMENTATION AT AEC SESSION
SKIPPED BY SPLM
REF: 07 KHARTOUM 1696
1. (SBU) SUMMARY: Dr. Mohammed Osman Ibrahim, Chairman of the
GOS's Fiscal and Financial Allocation and Monitoring Commission
(FFAMC), spoke to a special plenary session of the Assessment and
Evaluation Commission (AEC) April 10, updating a report he presented
last October (REFTEL). Most oil revenue owed to the South is being
transferred, while the Northern states are being shortchanged. The
Chairman noted a lack of cooperation from the various States of
Southern Sudan, which have not been providing requested information
on transfers of oil revenue that they receive via the GOSS. One
point of contention between the GoSS and the GNU appears to have
been cleared up: The Chairman said the two sides have agreed on a
means of collecting national revenues (customs and taxes) in the
South. Despite pledging to have a representative at every AEC and
working group session to help prepare the Mid-Term Evaluation (MTE)
of the CPA process, no one from the SPLM attended special session of
the FFAMC. END SUMMARY
BIG SUMS BEING TRANSFERRED; NORTHERN STATES LOSE OUT
--------------------------------------------- -------
2. (U) The April 10 plenary was organized by the US in its capacity
as Coordinator of the Wealth Sharing Working Group. The FFAMC is
one of the primary monitoring bodies created under terms of the CPA,
and is tasked with providing transparency in the Wealth Sharing
provisions of that agreement. Dr. Ibrahim provided up-to-date
information on transfers of oil revenues under the CPA. The
allocation of revenue by the GNU to the GoSS for calendar 2007 was
2.798 billion Sudanese pounds (about $1.4 billion USD); the
"deficit" (arrears) in payments was three percent, or 81.5 million
pounds ($40.75 million USD). The Northern States were the big loser
with the biggest deficit, receiving only 76% of the 3.09 billion
pounds ($1.5 billion USD) they were entitled to under the formulas
of the CPA.
FFAMC SAYS IT IS RECEIVING GENERALLY GOOD COOPERATION
--------------------------------------------- --------
3. (U) Chairman Ibrahim said that the cooperation his agency is
receiving from the GoSS and the GNU is fairly good. Asked to
identify any agencies which have not been providing adequate
cooperation in providing information, he singled out only the
separate state governments of Southern Sudan. The States have not
been filling out the questionnaires with the information on the
transfers they receive via the GoSS. Ibrahim noted that it was to
the states' benefit to provide this information.
4. (SBU) COMMENT: The FFAMC Chairman painted a generally positive
picture of CPA implementation, which has improved since his last
visit five months ago. The trend is towards greater cooperation
from the GNU (particularly the Ministry of Finance). During his
last presentation, he singled out that Ministry as not being
receptive to FFAMC requests for information. According to the
FFAMC's data, the GNU is providing the lion's share of oil wealth
owed to the GoSS. This time, the shortcomings appear more on the
side of the South. The lack of cooperation by the Southern States
may be the result more of a lack of organizational capacity of the
states rather than a refusal to fulfill terms of the CPA. However,
it could also reflect a decision imposed by the GOSS; whether the
FFAMC has the right to monitor the transfers of funds once they have
been delivered to the GoSS is a point of contention between the GOSS
and the GNU.
FERNANDEZ