Cablegate: Award Letter for U.S. Contribution to the Un


DE RUEHC #5266 1692204
O 172203Z JUN 08



E.O. 12958: N/A

1. This is an action request. The Department instructs
USUN to deliver the award letter in para 2 below to the UN
Electoral Assistance Division (EAD) as soon as possible.
Original will follow via fax that includes authorizing
signature. USUN should advise EAD that the funds will be
transferred upon Department's receipt of EAD's authorization
of the award letter. End action request.

2. Begin text of letter:

Dear Mr. Jenness,

As a follow-up to our letter dated June 9, 2008, under the
authority contained in the Foreign Assistance Act of 1961, as
amended, the U.S. Department of State hereby grants the sum
of $1.35 million dollars to the United Nations Trust Fund for
Electoral Assistance to support election observation for the
June 27 election in Zimbabwe.

This award is effective and obligation is made as of the date
of counter-signature of this letter by the United Nations,
reflecting its acceptance of the terms stated in the
Attachment to this letter. Please sign the original and all
enclosed copies of this letter to acknowledge your acceptance
of this award and the terms and conditions set forth herein,
and return the original to my office immediately.

Again, we thank you for your efforts in supporting the AU and
SADC in their mission to observe the run-off election in
Zimbabwe. We look forward to your report on how these funds
contributed to AU and SADC efforts.


Kristen Silverberg

Terms and Conditions

For the United Nations

Funds Citation:

Attachment ) Terms and Conditions

These funds are to be used to support the rapid deployment of
election observers from the African Union (AU) ($850,000 USD)
and the Southern African Development Community (SADC)
($500,000 USD) for the second round of Zimbabwe,s
presidential elections scheduled for June 27, 2008.

The United Nations shall advise the U.S. if any funds remain
after the completion of the Zimbabwe presidential elections
project so that the U.S. can provide instructions regarding
the use of those funds.

This award shall remain in effect until the Trust Fund
completes its work on the Zimbabwe presidential elections
scheduled for June 27, 2008, and all expenses are paid. This
award may be terminated by either party. In the event of
termination, any funds obligated hereunder must be returned
to the Department of State, except for funds committed
pursuant to a legally binding transaction. Such committed
funds shall continue to be subject to the terms of this
agreement until fully disbursed or returned to the Department
of State if they will not be disbursed.

U.S. funds or other support under this award are not to be
provided to individuals or organizations associated with
terrorism, illicit drug traffickers, or those known to assist
or collude with drug traffickers.

Funds provided herein should not be taxed. The United
Nations should seek to ensure that commodities purchased by
the Trust Fund with funds provided under this agreement are
exempt from taxes, including value-added taxes and customs
duties. To the extent that the UN Trust Fund does not have
adequate immunity from taxation, it should seek agreement
from the beneficiary entity that taxes will not be imposed.
Should any such value-added taxes or customs duties be
assessed and not refunded by any beneficiary entity, the
United Nations shall include this information in its
financial reports to the Department of State.

U.S. law does not permit recipients of these U.S. assistance
funds to earn interest on these funds. Should the United
Nations earn interest on these funds, the United Nations
shall provide a year-end accounting along with a certified
check made out to the United States Treasury for the amount
of the interest earned.

The United Nations agrees to provide the U.S. Government with
a final report on activities carried out under this award,
including accounting for funds to sufficiently substantiate
charges to the Trust Fund. The reports shall be submitted to
the U.S. Mission to the United Nations in New York for
forwarding to the Department of State.

It is understood that financial records, including
documentation to support entries on accounting records and to
substantiate charges against these funds, will be maintained
in accordance with the United Nations, usual accounting
procedures, which must follow United Nations System
Accounting Standards (&UNSAS8). All such financial records
must be maintained for at least three years after the final
disbursement of funds under this award in accordance with
United Nations document retention policies.

The account in which these funds are held will be audited,
applying established procedures under appropriate provisions
of the United Nations Financial Regulations and Rules.

U.S. funds should be utilized in a manner that respects the
human rights and dignity of persons. U.S. funds or support
under this grant shall not be provided to any security forces
(including police) where there is credible evidence that such
unit has committed gross violations of human rights. The
United Nations can request information from the Department of
State to help establish whether there is such evidence with
respect to prospective recipients of assistance.

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