US embassy cable - 04ROME2222

UNCLAS  ROME 002222 
 
SIPDIS 
 
 
FROM U.S. MISSION IN ROME 
 
USAID FOR AA/DCHA WINTER, DCHA/FFP LANDIS AND NOVICK 
STATE FOR PRM/MLANGE, IO/EDA KOTOK, AF/C AND AF/S 
USDA/FAS FOR CHAMBLISS 
GENEVA FOR USAID/KYLOH 
NSC FOR JDWORKEN 
MONTREAL FOR USICAO 
 
E.O. 12958: N/A 
TAGS: EAID, AORC, PREF, EAIR, WFP, AVIATION 
SUBJECT: WFP AIR OPERATIONS 
 
REF: ROME 2196 
 
1. Summary.  WFP is addressing the findings of the 
external auditor regarding air operations in advance of 
its next Executive Board meeting.  End summary. 
 
2. Review of the WFP's Air Operations, a Report of the 
External Auditor, was presented but not discussed at the 
Annual Session of the WFP Executive Board in late May 
2004 (reftel).  Instead, the Executive Board decided to 
take up the audit findings at its Executive Board meeting 
in October 2004.  Meanwhile, WFP is working to 
consolidate all UN humanitarian air operations for 
itself, OCHA, UNICEF, and UNHCR while it addresses 
reported deficiencies in financial and safety controls. 
 
3. WFP charters a wide variety of and large number of 
aircraft.  Essentially a medium-sized airline operation 
comparable in size to Virgin Atlantic, Easyjet, Egyptair, 
and Ryanair, WFP runs as many as 60 aircraft flying some 
60,000 hours per year and manage an average of 20 
strategic airlifts using specially chartered, large wide- 
bodied aircraft per year.  In addition, the National 
Aviation Authorities of the countries where WFP charters 
aircraft do not properly oversee the aircraft flying for 
WFP.  Therefore, because of its unusual risks, WFP has 
become particularly focused on creating an appropriate 
organizational structure with clear lines of authority to 
accommodate its expanded air operation responsibilities. 
 
4. The external auditor's report follows the November 
1999 WFP Kosovo air crash, a subsequent investigation 
into the accident by the Inspector General of Civil 
Aviation, France, a later review of the safety of WFP's 
air transport operations by the International Civil 
Aviation Organization (ICAO) in November 2000, and a 
report on the ICAO review prepared by consultants for WFP 
in August 2001. 
 
5. Since the external auditor's team performed field 
visits, e.g., Afghanistan in December 2002, Lokichoggio 
in April 2003, Angola in May 2003, and West Africa in 
July 2003, WFP has acted on many but not all of the 
report's recommendations. 
 
6. WFP is taking action to address the external auditor's 
nine findings pertaining to improving cost recovery, 
consolidating air operations, identifying financial 
liabilities, and evaluating and adjusting insurance risks 
through a reorganization that places responsibility for 
air safety oversight at the apex of WFP's management 
structure. 
 
7. For example, the auditor's first recommendation, that 
WFP improve budgetary controls to ensure the adequacy and 
availability of funding, is resulting in greater focus on 
debt management, particularly for WFP's air operations in 
Sudan.  Regarding recommendation eight, that WFP review 
the status of all MOUs with government authorities on air 
operations, WFP has completed a review of its operations 
in Afghanistan, the Horn of Africa, Sudan (North and 
South), Burundi, Angola, and Chad, and it is currently 
reviewing the air operation in the Congo. 
 
8. As alluded to in paragraph 6 above, recommendation 
five is particularly important.  The auditor recommends 
that as a matter of priority WFP should adopt 
comprehensive aviation standards and procedures and put 
in place arrangements to ensure compliance with the 
standards on a continuing basis.  This recommendation 
arises from comments in the ICAO report on the need for 
improved air standards, aviation management, 
communications and safety.  WFP has designated its Deputy 
Executive Director (Operations) as the responsible 
official for air safety and standards and, as recommended 
by ICAO, that air transport be recognized as a special 
technical service reporting to the Director of Transport 
and Procurement similar to Ocean Transport Service.  Such 
an organizational change is meant to ensure that regional 
 
and country officials, who do not have a background in 
air operations, are outside the chain of command and 
cannot jeopardize matters pertaining to air safety and 
the management of air operations. 
 
9. The US Mission appreciates the attention WFP is giving 
to its air operations, including air safety.  In view of 
the considerable potential liability of WFP's air 
operations and the seriousness of the external auditor's 
findings, US Mission staff will continue to engage WFP 
regarding its commitment to necessary improvements in its 
enlarged air operations.  In doing so, we will expect to 
participate actively and constructively about this topic 
in the October meeting of WFP's Executive Board. 
 
10. A copy of the external auditor's report is available 
on WFP's webpage at www.wfp.org by clicking on executive 
board, documents, annual, and the information note, 
Report of the External Auditor on Management Matters 
(WFP/EB.A/2004/INF/8-A).  Hall 
 
 
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	2004ROME02222 - Classification: UNCLASSIFIED