US embassy cable - 05BOGOTA7832

UNCLAS SECTION 01 OF 02 BOGOTA 007832 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: MOPS, ECON, KCRM, CO 
SUBJECT: COLOMBIAN MILITARY SPENDING MORE TRANSPARENT THAN 
EVER, BUT FIGHT AGAINST GRAFT MUST CONTINUE 
 
REF: A. BOGOTA 011331 
 
     B. BOGOTA 6598 
 
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SUMMARY 
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1. (U) Vice-Minister of Defense Eastman praised the results 
of the Security and Democracy Foundation (FSD) and the Latin 
American Security Defense Network (RESDAL) study of 
transparency in Colombia's defense budgeting and spending 
released on 9 August, while acknowledging that more needs to 
be done.  The study concluded that a series of internal 
reforms, such as restructuring the defense sector to better 
address the internal armed conflict, and the appointment of 
civilians to high level defense ministry positions, have made 
defense spending more efficient and transparent.  Surprising 
results of the study include that Colombia has fewer soldiers 
per capita than Chile or Spain, and that Colombia's spending 
per soldier is only average for Latin America. The study also 
offers several recommendations to reduce corruption and 
improve transparency, such as the creation of a legal 
framework for the defense sector and the centralization of 
purchases. End Summary. 
 
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MAIN POINTS FROM THE STUDY 
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2. (U) On August 9, The FSD, an independent, well-respected 
security think tank, and RESDAL, a regional security network, 
presented findings on transparency in Colombia's defense 
budgeting spending over the past decade.  The study indicated 
that a series of important recent security and defense 
innovations at the national level have garnered significant 
benefits.  The Ministry of Defense (MOD) has restructured the 
defense sector to better address Colombia's armed conflict; 
appointed civilians to high level defense positions; created 
the Presidential Department for Defense and Security to 
coordinate and supervise policy implementation; formed 
counterinsurgent brigades; developed a cadre of professional 
soldiers; and established the Justice and Security Unit in 
the Department for National Planning, which has helped 
fortify the participation of civilians in the formulation of 
defense budgets. 
 
3. (U) Despite the GOC's efforts to increase its public 
security budget, deficiencies still exist, according to the 
study.  Troop levels are insufficient even for a country at 
peace.  Colombia has fewer soldiers per capita than Chile and 
Spain; Colombia's spending per soldier is average for Latin 
America, despite its active conflict; and military spending, 
including pension costs, as a percentage of GDP reaches only 
3 percent (most recent Embassy reporting indicated that the 
Colombian Congress approved a 7 percent increase this year in 
military spending over 2004). 
 
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STUDY RECOMMENDATIONS 
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5. (U) The study proposed a series of recommendations to 
further the MOD's reform process: 
 
- Legal Framework: The most important reform, according to 
the study, would be to create a legal framework for the 
defense sector that clearly defines the responsibilities of 
each department. 
 
- Centralize Spending: To reduce corruption, measures such as 
centralization of purchases and the reorganization of 
logistics will help improve transparency. 
 
- Streamline Spending: The fusion of the Armed Forces' (Army, 
Navy, and Air Force) budgets would contribute to the overall 
simplification of management and execution.  Moreover, the 
National Police, which falls under the MOD but operates as an 
independent ministry, should later be included in an overall 
defense budget. 
 
- Training: Train the Ministry of Defense Executive Unit's 
administrative and battalion personnel responsible for the 
daily budgeting for the defense sector to reduce costs and 
increase efficiency. 
- Information Sharing: In the medium term, every group should 
integrate with the Integrated System of Financial Information 
(SIIF), a computer program designed to help integrate 
information sharing and public finances.  The SIIF could 
assist in facilitating internal control and help conduct 
necessary auditing. 
 
- Reorganization: The Ministry of Defense's Internal Control 
Office should report directly to the Office of the Minister 
instead of the Vice Minister. 
 
- Congressional Leadership: Congress needs to assume greater 
leadership on topics related to security and defense.  The 
creation of a parliamentary commission that is dedicated 
exclusively to those topics could help increase 
participation, elaboration, approval, and budget monitoring. 
Moreover, by getting Congress more involved, the GOC could 
better prioritize its Democratic Security policy. 
 
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VICE MINISTER OF DEFENSE'S RESPONSE 
----------------------------------- 
 
6. (U) Vice Minister of Defense Jorge Mario Eastman appeared 
with the think tank presenters and praised the results of the 
study.  He acknowledged the need to continue moving forward 
with reforms the MOD has developed over the past decade. 
Eastman argued that increasing public approval of the 
military and police force (75 percent and 64 percent, 
respectively) was the result of the progress made in the 
recent years.  Eastman explained that the MOD has been 
working hard to address corruption and offered the example of 
the MOD's efforts to modernize its logistics system.  He also 
cited the unprecedented recent discussion in Congress of the 
purchase of the Brazilian "Super Tucanos" military planes, 
which he said signals the MOD's commitment to increase 
transparency in such high level purchases. 
 
WOOD