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### Viewing cable 06PARIS2207, UNESCO: EXECUTIVE BOARD CONSIDERS DG'S PLANS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06PARIS2207 | 2006-04-04 17:42 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Paris

`

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

    041742Z Apr 06

` `

    UNCLAS SECTION 01 OF 03 PARIS 002207

    SIPDIS

    FROM USMISSION UNESCO PARIS

    SENSITIVE

    STATE FOR IO/UNESCO KELLY SIEKMAN
    STATE FOR L JUDITH OSBORNE
    STATE FOR IO/S LISA SPRATT

    E.O. 12958:     N/A
    TAGS: AORC BR UNESCO
    SUBJECT:  UNESCO: EXECUTIVE BOARD CONSIDERS DG'S PLANS
    FOR "REORIENTATION" OF TROUBLED BRASILIA OFFICE

    ¶1.  THIS IS A GUIDANCE REQUEST, SEE PARA 2.

    ¶2.  (SBU) SUMMARY AND INTRODUCTION:  AT THE MARCH 29-31
    MEETING OF THE FINANCIAL AND ADMMINSTRATIVRE EXPERTS'
    GROUP, A MEMBER OF UNESCO'S LEGAL OFFICE SAID THAT HIS
    OFFICE HAD ADVISED THE SECRETARIAT THAT CERTAIN
    ACTIVITIES IN WHICH UNESCO IS SUB-CONTRACTING WORKERS
    FOR BRAZILIAN GOVERNMENT MINISTRIES MIGHT CONSTITUTE A
    LEGAL RISK FOR THE ORGANIZATION, GIVEN THE FACT THAT
    SUCH SUB-CONTRACTING PRACTICES HAVE GIVEN RISE TO
    CHARGES BROUGHT BY A BRAZILIAN PROSECTOR AGAINST THE
    HEAD OF THE UNESCO OFFICE AND THE UNESCO DG.  THE
    SECRETARIAT REPORTED THAT UNESCO PLANNED TO CONTINUE

    SIPDIS
    SUCH ACTIVITIES THROUGH 2007, GIVEN THE LIMITED
    CAPACITY OF THE BRAZILIAN GOIVERNMENT TO FULFILL THESE
    FUNCTIONS.  ANOTHER MEMBER OF UNESCO'S LEGAL STAFF
    CONFIDED TO THE U.S. DELEGATION THAT THE CONTRACT
    CONDITIONS AND CONTRACTING PARTIES INVOLVED IN THE
    CONTINUING ACTIVITIES ARE DIFFERENT FROM THOSE THAT
    HAVE GIVEN RISE TO LEGAL CHARGES, WITHOUT SPECIFYING
    HOW, EVEN WHEN PRESSED; BUT HE ALSO ACKNOWLEDGED THAT
    HIS OFFICE HAD ADVISED THE SECRETARIAT TO LIMIT RISK BY
    DISCONTINUING THE CONTRACTS.

    ¶3.  (SBU) MISSION REQUESTS GUIDANCE ON WHETHER IT IS
    ADVISABLE TO PRESS THE ISSUE at the executive board OF
    WHETHER THESE PROGRAMS PRESENT A LEGAL RISK AND SHOULD
    thus BE DISCONTINUED; AND IF SO, WHEN.  IF THIS IS
    DESIRABLE, MISSION REQUESTS LANGUAGE TO AMEND THE
    CURRENT VERSION OF THE DRAFT REOSLUTION (174 EX/21,
    CURRENT VERSION IN LAST PARA OF THIS MESSAGE.)  ANY U.S
    ATTEMPT TO INSERT SUCH LANGUAGE LIKELY WILL BE
    FORCEFULLY COUNTERED BY BRAZIL.  AN AMERICAN,
    RREPORTEDLY ONE OF THE TWO CANDIDATES STILL IN THE
    RUNNING FOR THE POST OF DIRECTOR OF THE BRASILIA
    OFFICE, WOULD BE IN AN IDEAL POSITION TO EVALUATE THE
    SITUATION AND ENACT REFORMS - IF HE WERE TO BE CHOSEN.
    THIS APPOINTMENT WOULD PROBABLY REQUIRE THE APPROVAL OF
    THE BRAZILIAN DELEGATION TO UNESCO, CHARY OF ANY MAJOR
    CRITICISM OF THE BRASILIA OPERATION.  END SUMMARY AND
    INTRODUCTION.

    U.S. PRESSES FOR ACCOUNTING/REFORMS AT BRASILIA OFFICE
    --------------------------------------------- ---------

    ¶4.  (U) THE CURRENT SESSION OF UNESCO'S EXECUTIVE BOARD
    WILL TACKLE THE ISSUE OF UNESCO'S TROUBLED BRASILIA
    OFFICE; AGENDA ITEM 19 PRESENTS THE OPPORTUNITY TO
    DEBATE "THE REPORT OF THE DIRECTOR GENERAL ON THE
    ACTIVITIES AND THE RESULTS OF THE UNESCO OFFICE IN
    BRASILIA" (174 EX 21). THIS ITEM HAS ALREADY BEEN
    DISCUSSED AT THE F/A EXPERTS' GROUP MEETING (MARCH 29-
    31) AND IS ON THE AGENDA OF THIS WEEK'S FINANCIAL AND
    ADMINISTRATIVE (F/A) COMMISSION AND PROGRAM AND
    EXTERNAL RELATIONS (P/X) COMMISSION AS WELL.

    ¶5.  (U) IN ADVANCE OF THE FINANCIAL AND ADMINISTRATIVE
    (F/A) EXPERTS' MEETING, THE U.S AND ITS GENEVA GROUP
    PARTNERS DECIDED TO PRESS OTHER MEMBER STATES TO ADD
    SUBSTANCE TO THE DRAFT DECISION PROPOSED BY THE
    SECRETARIAT (PARA 40 DOCUMENT 174/EX 21), INCLUDING TO

    SIPDIS
    EXPRESS "CONCERN WITH ADMINISTRATIVE, FINANCIAL AND
    OTHER WEAKNESSES" AND TO REQUEST THE DIRECTOR GENERAL
    TO REPORT BACK ON BRASILIA OFFICE REFORM EFFORTS AT THE
    FALL 2006 EXECUTIVE BOARD.  THE GENEVA GROUP SUCCEEDED
    IN INCLUDING SUCH LANGUAGE IN THE VERSION OF THE DRAFT
    RESOLUTION THAT WILL BE FORWARDED TO THE F/A AND P/X
    COMMISSIONS THIS WEEK (APRIL 6-11), ALONG WOITH
    LANGUAGE RECOMMENDING THAT THE DECENTRALIZATION PROCESS
    AND THE SECRETARIAT'S ACTION PLAN ON EXTRA-BUDGETARY
    FUNDS BE INFORMED BY LESSONS LEARNED VIA THE BRASILIA
    OFFICE.  (TEXT AT LAST PARA OF THIS MESSAGE) HOWEVER,
    THE BRAZILIAN OBSERVER TO THE F/A EXPERTS' GROUP
    SIGNALED THAT HE WOULD PRESS FOR A MORE "BALANCED"
    RESOLUTION AT THIS WEEK'S F/A AND P/X COMMISSIONS THAT
    WOULD HIGHLIGHT WHAT HE DESCRIBED AS PRAISEWORTHY
    PROGRAMS INITIATED BY UNESCO'S BRASILIA OPERATION.

    AS SOME THORNY LEGAL ISSUES PERSIST
    -----------------------------------

    ¶6.  (U) AT THE MEETING OF THE F/A EXPERTS' GROUP, LEGAL
    ISSUES  AROSE THAT HAD NOT BEEN DEALT WITH IN THE  DG'S
    REPORT ON THE BRASILIA OFFICE. AS THE PELIMINARY REPORT
    OF  THE F/A EXPERTS' MEETING HIGHLIGHTS:  "SOME MEMBERS
    ASKED  THE LEGAL ADVISOR ABOUT THE COURT CASE  REFERRED
    TO  IN THE REPORT. THE LEGAL ADVISOR INFORMED THE GROUP
    THAT   THERE  IS  A  CIVIL  ACTION  ALLEGING  ACTS   OF
    ADMINISTRATIVE  IMPROPRIETY THAT SEEKS  APPLICATION  OF
    SANCTIONS  AGAINST HIGH RANKING FORMER OFFICIALS  OF  A
    PUBLIC  AGENCY  IN BRAZIL, AS WELL AS  UNESCO  AND  ITS
    FORMER  REPRESENTATIVE  IN THE COUNTRY,  FOR  ALLEGEDLY
    CAUSING  EXTENSIVE  LOSSES TO  THE  PUBLIC  COFFERS  OF
    BRAZIL. THE CIVIL ACTION HAS BEEN SUSPENDED, PENDING  A
    DETERMINATION BY BRAZIL'S SUPREME COURT AS  TO  WHETHER
    UNESCO  HAS  IMMUNITY FROM LEGAL PROCESS IN  THIS  CASE
    (NB:   THE PROSECUTOR IS ARGUING THAT UNESCO'S IMMUNITY
    DOES NOT APPLY, AS IT WAS ACTING IN A FIELD OUTSIDE  OF
    ITS  MANDATE). ANOTHER MEMBER ASKED IF IT  WOULDN'T  BE
    OPPORTUNE  IN  THIS  CONTEXT  TO  END  IMMEDIATELY  ALL
    ONGOING  PROJECTS OUTSIDE OF UNESCO'S COMPETENCES.  THE
    LEGAL ADVISOR STATED THAT THE LEGAL OFFICE ADVISED THAT
    ANY  PROJECTS THAT WOULD NOT COMPLY WITH THE  BRAZILIAN
    LEGISLATION    BE    TERMINATED   EXPEDITIOUSLY.    THE
    REPRESENTATIVE OF THE DIRECTOR GENERAL (HEAD  OF  FIELD
    OFFICES)  INDICATED  THAT  A  TRANSITION  STRATEGY   IS
    NECESSARY  TO  PERMIT  A  PROGESSIVE  TRANSFER  OF  THE
    ACTIVITIES  OF  THE PROJECTS IN QUESTION  TO  CONCERNED
    AUTHORITIES, IN ORDER NOT TO DETRACT FROM  PROGRAMS  OF
    NATIONAL IMPACT.

    ¶7.  (SBU) U.S. MISSION OFFICERS QUESTIONED ANOTHER
    REPRESENTATIVE OF THE LEGAL ADVISOR'S OFFICE ON THE
    LEGAL RISK POSED BY CONTINUING THE SUB-CONTRACTING
    ACTIVITIES IN AREAS OUTSIDE OF UNESCO'S MANDATE
    (INCLUDING HEALTH).  HE ACKNOWLEDGED THAT HIS OFFICE
    HAD ADVISED THE SECRETARIAT TO MINIMIZE ITS EXPOSURE TO
    RISK BY DISCONTINUING THE CONTRACTS, BUT SAID THAT THAT
    THE CONTRACT CONDITIONS AND CONTRACTING PARTIES
    INVOLVED IN THE CONTINUING ACTIVITIES ARE DIFFERENT
    FROM THOSE THAT HAVE GIVEN RISE TO LEGAL CHARGES.  WHEN
    PRESSED, HOWEVER, HE DID NOT OFFER MORE DETAIL ON HOW
    THESE CONTRACTS DIFFERED.

    ¶8.  (U) AT A SUBSEQUENT SESSION OF THE F/A EXPERTS'
    MEETING, THE LEGAL ADVISOR WHO IS MOST CLOSELY
    FOLLOWING THE BRASILIA DOSSIER CLARIFIED HIS POSITION.
    HE SAID THAT IT WOULD BE A MISTAKE TO CHARACTERIZE
    BRASILIA OFFICE ACTIVITIES AS "ILLEGAL" - THE TERM
    "CONTRARY TO BRAZILIAN LAW" WOULD BE MORE EXACT, HE
    SAID.  IT IS FOR THAT REASON THAT AN APPROACH THAT
    MINIMIZES RISK IS IMPORTANT: "WE CANNOT JUDGE WHETHER A
    WINDING DOWN OF CURRENT OPERATIONS WOULD BE ACCEPTABLE
    TO A BRAZILIAN PROSECUTOR."

    ¶9.  (U)  TEXT OF RESOLUTION ADOPTED BY THE F/A EXPERTS'
    GROUP:

    THE EXECUTIVE BOARD,

    HAVING  CONSIDERED DOCUMENT 174 EX/21, IN THE LIGHT  OF
    DOCUMENTS 174 EX/27, 174 EX/29 AND 174 EX/INF.4

    NOTING  THE  SCALE  AND  IMPORTANCE  OF  THE  OPERATION
    MANAGED BY THE UNESCO BRASILIA OFFICE

    CONCERNED   WITH  THE  ADMINISTRATIVE,  FINANCIAL   AND
    PLANNING   WEAKNESSES   OF  THE   MANAGEMENT   OF   THE
    EXTRABUDGETARY ACTIVITIES BY THE UNESCO BRASILIA OFFICE
    AND  IN  PARTICULAR  WITH  THE INADEQUACY  OF  INTERNAL
    CONTROLS  AND COMMUNICATIONS WITH HEADQUARTERS  RECALLS
    THE  IMPORTANCE FOR ACTIVITIES AT FIELD LEVEL TO BE  IN
    LINE  WITH UNESCO'S OBJECTIVES DEFINED IN THE  C/4  AND
    C/5

    TAKES  NOTE  OF  THE ACTIONS TAKEN AND PLANNED  BY  THE
    DIRECTOR-GENERAL  TO  REORIENT THE  OPERATIONS  OF  THE
    UNESCO   OFFICE   IN  BRASILIA  AND   TO   REMEDY   THE
    DEFICIENCIES  IN  THE  MANAGEMENT  OF  THE  OFFICE  AND
    MONITOR THE SCOPE OF THE OPERATIONS;

    INVITES  THE DIRECTOR-GENERAL TO CONTINUE TO  IMPLEMENT
    HIS  ACTION  PLAN FOR THE REORIENTATION OF  THE  UNESCO
    OFFICE  IN  BRASILIA IN ACCORDANCE WITH  DECISIONS  174
    EX/.  AND 174 EX/.  AS WELL AS THE RECOMMENDATIONS FROM
    BOTH IOS AND THE EXTERNAL AUDITOR AND TO REPORT BACK TO
    ITS 175TH SESSION.

    REQUESTS  THE DIRECTOR-GENERAL TO ENSURE THAT PROPOSALS
    FOR  UNESCO'S ACTIVITIES IN BRAZIL ARE CONSISTENT  WITH
    AN  OVERALL STRATEGY FOR DECENTRALIZATION, AS  PART  OF
    THE  RATIONAL  DELIVERY OF PROGRAMMES AGAINST  UNESCO'S
    PRIORITY OBJECTIVES; AND THAT LESSONS LEARNED FROM  THE
    EXPERIENCE IN BRASILIA SHOULD BE TAKEN INTO ACCOUNT  IN
    FURTHER DEVELOPING THE DECENTRALIZATION STRATEGY.

    ALSO REQUESTS THE DIRECTOR-GENERAL TO TAKE FULL ACCOUNT
    OF  THE LESSONS DERIVED FROM THE EXPERIENCE IN BRASILIA
    INCLUDING  THE  SPECIFIC  RISKS  INVOLVED  WITH   SELF-
    BENEFITING FUNDS WHEN DEVELOPING THE OVERALL  STRATEGIC
    VISION AND ACTION PLAN CALLED FOR IN DECISION 174  EX/.
    PARA. .

    OLIVER

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