Cablegate: Program Reporting: Speaker "the Importance of Ethics In

This record is a partial extract of the original cable. The full text of the original cable is not available.

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

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