US embassy cable - 05DHAKA603

UNCLAS DHAKA 000603 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BG, PREL, PGOV, EAID 
SUBJECT: AMBASSADOR AND USAID DIRECTOR MEET WITH FINANCE 
MINISTER ON MILLENNIUM CHALLENGE ACCOUNT 
 
1. SUMMARY:  On February 6, Ambassador, USAID Director, and 
PA officer (note taker) met with Finance Minister Saifur 
Rahman to discuss the Millennium Challenge Account (MCA). 
The USAID Director presented a list of benchmarks, developed 
by the Mission, directed at assessing Bangladesh's 
commitment to ending corruption.  These included an 
effective anti-corruption commission, improvement in 
transparency of government, reform of oversight and policy 
institutions, and adoption and implementation of 
international norms. 
 
2.  The FM complained that some "thoroughly corrupt" 
countries did receive MCA funds; AMB acknowledged this but 
stressed that they had made visible and strong efforts to 
combat corruption in their countries. The USAID Director 
added that USAID AdministratorDirector-General Natscios, as 
a Board member of the Millennium Challenge Corporation 
(MCC), does want to supportsupported Bangladesh's bid but 
corruption is standing in the way.  The USAID Director noted 
that of 16 criteria for MCA eligibility, Bangladesh is 
"solid" on 11, but needs to show sincere, strong, and 
measurable efforts on three or four other criteria. 
 
3. He noted that despite common perception, Transparency 
International's corruption perception index is not the 
primary basis for the decision, saying that MCA MCC gauges 
efforts and looks at numerous other data sources and reviews 
countries' meaningful progress in fighting corruption.  He 
also pointed out that the Anti-Corruption Commission is not 
a solution to the problem of corruption.  For the government 
to demonstrate its support for anti-corruption efforts, it 
must avoid the creation of committees and commissions and 
take realistic, progressive steps. 
 
4. The USAID director noted that of 16 criteria for MCA, 
Bangladesh is "solid" on 11, but needs to show sincere, 
strong, and measurable efforts on three or four other 
criteria. 
 
4. The FM acknowledged that the Anti-Corruption Commission 
is not working the way it should and that it is crippled by 
internal arguments to the extent that it cannot work 
coherently.  The existing staff is problematic, the chair is 
unwilling to agree to take steps to correct the infighting, 
and he feels that moving them to a new commission would be 
putting "old wine into new bottles." 
 
5.  While many points from the list were discussed, some key 
reactions from the FM are: 
      The requirement to disclose publicly the accounts of 
     development projects seemed to be the most unpalatable. 
    The FM discussed at length his perception that a Human 
Rights Commission (HRC) was unnecessary since human rights 
are guaranteed in the preamble to the Constitution, 
, 
"jealously guarded" by the Court, and too many commissions 
can "paralyze progress."  He promised to look into 
establishing an HRC and said he would not "write it off" 
although he believes it is not necessary. 
    He prefers to establish an Office of the Ombudsman 
before working toward HRC. 
    The FM noted that he has discussed the Freedom of 
Information Act (FOIA) with the Law Minister and has studied 
a copy of India's FOIA. 
    He described the Official Secrets Act as "rubbish" and 
said that he would like to see it removed. 
 
6. The Finance Secretary was proposed as a point of contact 
for the USAID Director to use in MCA discussions.  The FM 
reiterated his unhappiness with MCA funding.  AMB and USAID 
Director cited President Bush's remark that corruption is a 
big obstacle in developing countries. 
 
THOMAS