US embassy cable - 05LIMA3497

UNCLAS LIMA 003497 
 
SIPDIS 
 
STATE FOR IIP/G/WHA (CBARONE), IIP/T/ES (GCHRISTISON), INFO 
WHA/PDA (SLEBENS/MDCONNERS/GADAMS), WHA/PD (GGALLEGOS), WHA/AND 
(JMONSERRAT) 
 
E.O.12958: N/A 
TAGS: OIIP, PE 
SUBJECT: PROGRAM REPORTING: SPEAKER "THE IMPORTANCE OF ETHICS IN 
PUBLIC SERVICE AND FINANCIAL DISCLOSURE REPORTING OF GOVERNMENT 
OFFICIALS IN THE FIGHT AGAINST CORRUPTION"-- TRACKER 24270 
 
 
1.   Hiram Morales Lugo, Executive Director of the Puerto Rican 
Office of Government Ethics, and Vivian Sanes, Director of the 
Financial Reports Auditing Bureau of the same office, visited 
Peru from 21-22 July to conduct a workshop on financial 
disclosure reporting.  The purpose of the program was to exchange 
experiences on financial disclosure regulations, standards of 
conduct, and other ethical matters with a group of 35 
representatives from the Peruvian Comptroller's Financial 
Disclosure Reporting Bureau, who are responsible for reviewing 
all financial disclosure reports for most public servants and 
politically appointed officials.  This program was part of Post's 
efforts to aid the Peruvian government in their anti-corruption 
initiatives and also to follow-up on a program conducted with 
Barbara Mullen-Roth in November 2004.  So far, Post has seen 
excellent results.  Currently the Comptroller's office is 
proposing legislation that would overhaul the financial 
disclosure reporting form. 
 
2.   During their stay in Lima, Mr. Morales and Ms. Sanes 
conducted a two-day intensive workshop at the Comptroller's 
National School and had a representational lunch, hosted by ACAO, 
with key PAS anticorruption contacts.  The first day of their 
program, Mr. Morales  gave a lecture to over 200 representatives 
from the private and public sector on the importance of ethics, 
transparency and good governance.  The second day, he had a press 
interview with Official Gazette El Peruano (Lima daily 
circulation 12,900), which was published on page 6 of its 1 
August edition. 
 
Mr. Morales and Ms. Sanes developed a well-structured program, 
which included topics such as the receipt, registration and 
auditing of financial disclosure forms, the powers and mechanisms 
to lift bank confidentiality, officials who must file the forms, 
information contained in the forms, the laws that regulate them, 
the criteria used to select the financial reports to be audited, 
the software used, and practical cases.  During their 
presentations, they highlighted the importance of exchanging 
information with other government institutions and stressed that 
training was essential in preventing, detecting, investigating, 
and punishing acts of corruption.  Before closing the workshop, 
Mr. Morales applauded the accomplishments made by the Peruvian 
Comptroller's Office since his last visit in June 2002.  He also 
encouraged them to continue improving the financial disclosure 
system to provide a useful tool for detecting and preventing 
conflicts of interest as well as possible cases of illicit 
enrichment. Mr. Morales and Ms. Sanes' ample experience and 
knowledge allowed them to provide thorough explanations and to 
respond all questions from the audience. 
 
3.   Results: As a result of Post's cooperation with the 
Comptroller's Office, a bill has been introduced in Congress to 
modify the Constitution to give the Comptroller General access to 
government officials' confidential bank and tax information.  A 
second bill, to establish an annual fixed dated when public 
servants must file their financial disclosure forms and to 
require that public servants file reports within 30 days of their 
termination date, will be presented to Congress later this year. 
This bill will also set up administrative sanctions such as late 
filing fees for those who fail to submit their reports or submit 
them without meeting the established terms and conditions. 
 
4.   U.S. support: Program was funded with FY05 I bucks. Our 
appreciation to IIP/T/ES, Gretchen Christison for her close 
coordination with post.  Post highly recommends Mr. Morales and 
Ms. Sanes and will request follow-up DVCs with them. 
 
STRUBLE