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Diplomacy in Action

Andean Counterdrug Initiative


International Narcotics and Law Enforcement: FY 2003 Budget Justification
Bureau for International Narcotics and Law Enforcement Affairs
May 2002
Report
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                            Bolivia

Budget Summary ($000)

FY 2001 Actual

FY 2002 Estimated

FY 2003 Request

52,0001

81,000

91,000

1This total does not include $110 million of FY 2000 Plan Colombia Emergency Supplemental funding.

Objectives

  • Promote strong, cohesive democratic government institutions capable of stopping narcotics production and trafficking in Bolivia;
  • Eliminate the production and export of coca and cocaine products from Bolivia through the eradication of illicit coca, increased interdiction, and the establishment and encouragement of sustained economic growth in the Chapare and the Yungas regions to reduce the impact of the drug trade on the Bolivian economy: and
  • Strengthen and improve the efficiency of the Bolivian criminal justice system.

Justification

Despite setbacks in the Yungas, Bolivia continues to be the model for the region in coca eradication, with 92 percent of Chapare coca eliminated by December 2000. Once one of the world’s largest coca producers, Bolivia now produces substantially less coca leaf and cocaine than Colombia or Peru because of the success of an integrated strategy of eradication, interdiction and alternative development. However, implementation of Colombia’s "Plan Colombia" and successful eradication programs in Colombia and Peru have caused coca leaf prices to rise in Bolivia. The result is coca replanting in the Chapare at a rapid pace. The Government of Bolivia (GOB) has maintained a strong eradication force in the Chapare for that reason, and has eradicated over 7,000 hectares of coca that was mostly replanted after January 2001.

The cocaine industry in Bolivia continues to be dominated by small trafficking organizations that manufacture and distribute cocaine base in multi-hundred kilogram quantities per month. However, a highly effective chemical interdiction program forced Bolivian traffickers to rely on inferior substitutes and recycled solvents, causing the purity of Bolivian cocaine to be greatly reduced. This contributed significantly to Bolivia’s becoming a transshipment zone for higher quality Peruvian cocaine products en route to Brazil and other Southern Cone countries.

In the Yungas, forced eradication operations that were planned during 2001 did not take place because violent opposition by militant cocaleros caused the GOB to reassess its policy. Resources for eradication were, therefore, shifted to increased interdiction operations in that region, particularly on the borders, and to revitalize the General Directorate for the Legal Trade of Coca (DIGECO). These enhanced initiatives will help to ensure that legal coca grown in the traditional zone in the Yungas is only traded at the legal market, and not diverted to illegal cocaine production.

Counternarcotics alternative development support is conditioned on the elimination of illegal coca through forcible means (Chapare—where all coca is illegal) and voluntary agreements (Yungas—where Bolivian law allows up to 12,000 hectares of legal coca cultivation for traditional use), and offers viable options to its cultivation. There are now 114,000 hectares of licit crop cultivation in the Chapare and direct technical assistance has been provided to nearly 10,000 Chapare families since the initiation of the current alternative development project, CONCADE, in 1998.

FY 2003 Program

In FY 2003, additional INL resources, together with increased GOB political will, will support Bolivian efforts to eliminate the remaining illegal coca in Bolivia, halt exportation of cocaine, increase interdiction of essential chemicals and cocaine products, foster alternative economic development, lead to more successful prosecutions of narcotics-related cases, and improve the quality of investigations into alleged human rights violations. Bolivia remains one of the poorest countries in the hemisphere with a per capita GNP of less than $1,000 in 2000. Without USG assistance, Bolivia would be unable to support the present level of counternarcotics and alternative development programs.

FY 2003 will begin just after the inauguration of a new Bolivian presidential administration. While Plan Dignidad, former President Banzer’s five-year plan to eliminate illegal coca cultivation and remove Bolivia as one of the world’s largest suppliers of cocaine will be completed, its successes must be consolidated to ensure that coca cultivation and drug trafficking do not regain a foothold in Bolivia. The FY 2003 budget request reflects the required level of support needed to sustain counternarcotics operations in two distinct regions. In the Chapare, coca replanting is ongoing, and must be stopped, while in the Yungas, where many displaced narcotics traffickers from the Chapare have relocated, we are expanding efforts to control the legal coca market and the illegal diversion of coca for cocaine processing. Violent ambushes of eradication forces in the Chapare and interdiction forces in the Yungas in 2001 highlight the need to significantly increase both manpower and commodity resources in these volatile regions.

In FY 2003, INL will continue to support twenty-six counternarcotics programs in Bolivia (e.g., training, equipment and technical assistance). They can be grouped into four distinct areas: 1) Narcotics Law Enforcement /Eradication Operations; 2) Alternative Development/Economic Incentives; 3) Administration of Justice/Rule of Law; and 4) Drug Awareness/Demand Reduction. In addition, funding will also be used for INL’s Program Development and Support costs.

Narcotics Law Enforcement and Eradication Operations Projects

support civilian police units responsible for the conduct of counternarcotics law enforcement and the protection of military units dedicated to coca eradication and counternarcotics support operations. Increased support will enable the Office of the Vice Minister of Social Defense to enhance counternarcotics programs and activities. Oversight and support in the Yungas will be particularly difficult, and will require the Vice Ministry to expand its regional support structure. Police units receiving U.S. support include the Special Force for the Fight Against Narcotics Trafficking (FELCN), with its uniformed interdiction force (the Police Rural Mobile Patrol Units or UMOPAR) and the Special Prosecutors of Controlled Substances that are assigned to these units. Greater coverage of the Yungas, Beni/Pando, east and south Bolivia regions will require additional FELCN and UMOPAR personnel and facilities. Construction of three new UMOPAR bases is anticipated in FY 2003.

With U.S. support, the Financial Investigation and Analysis Group (GIAF), which investigates all forms of money laundering, will expand by 150 percent to 20 personnel and add two regional offices in Cochabamba and Santa Cruz. Also supported under this project are the Ecological Police, who will have an expanded security role for the military units that carry out eradication operations as militant cocaleros in the Chapare continue to attack and ambush GOB forces; DIRECO, which will need to increase its presence in the Chapare and the Yungas to negotiate coca eradication agreements, verify measurements of (forcefully or voluntarily) destroyed fields; and the Joint Eradication Task Force that will maintain over 1,600 military, police and civilian personnel responsible for eradication operations in the Chapare. INL will also provide support for the Office of Professional Responsibility, which, owing to increasingly violent confrontations between cocaleros and police, will need to conduct more investigations of allegations of corruption and human rights violations by narcotics police.

INL will support four Bolivian military units dedicated to providing transportation and logistical support to the police via air, land and river. The Red Devils Task Force (RDTF) consists of Bolivian Air Force units operating UH-1H helicopters and small fixed wing aircraft used in eradication/enforcement operations. The Black Devils Task Force (BLDTF) provides pilots and mechanics to fly and maintain three C-130 and one King Air aircraft used to transport police and heavy equipment, and pre-stage fuel in areas not accessible by road. The Blue Devil Task Force (BDTF), a Bolivian Naval unit with law enforcement authority, is responsible for maintaining a military-counternarcotics law enforcement presence on all rivers and waterways in Bolivia to deny narcotics traffickers the use of fluvial transportation and to make arrests and seizures. The army Green Devil Task Force (GTDF) provides extensive ground mobility and logistical support to the police.

Forced eradication operations in the Yungas will not take place because of a policy shift by the GOB after violent encounters with armed, militant cocaleros in 2001. The Yungas is a particularly hostile region in which illegal coca cultivation occurs at very high altitudes and remote areas where the present inventory of helicopters cannot operate. The GOB has determined that controlling the legal coca market in the Yungas, significantly increasing interdiction and precursor chemical control operations, and enhancing border control, particularly along Bolivia’s shared border with Peru, will prevent the diversion of legal coca to illegal cocaine production in this region. The reformed General Directorate for the Legal Trade of Coca (DIGECO), responsible for controlling and closely monitoring the legal coca market in the Yungas to prevent diversion to illicit markets, will play a major role in this respect. Expanded INL support for interdiction, particularly along border areas, will be key to heading off an influx of drug trafficking activity resulting from the implementation of Plan Colombia. Increased support for the Controlled Substance Prosecutors, and re-establishing support for the Seized Assets Directorate (discontinued in 1998 due to inefficiency and corruption, but now refocused under the Minister of Government) are also part of this strategy. The chemical investigative unit, GISUQ, will have 85 members (a 42 percent increase) to control the growing problem of international transit of precursor chemicals through Bolivia.

In order to carry out these new initiatives, additional improvements to a GOB military airstrip in the Yungas to enable the C-130B aircraft to fly in supplies and personnel will be needed. In addition, ground transportation will be required to move resources to areas where counternarcotics operations are taking place. The Inter-American Development Bank has dubbed the road traversing the Yungas the world’s most dangerous road. Aside from tricky hairpin turns, the rocky and rutted road is seldom wider than 11 feet, necessitating its closure at either end by soldiers to allow only one-way traffic during varying times of the day. Counternarcotics operations as well as alternative development programs will require that we continue to support infrastructure improvements, including road and bridge construction and upgrades.

Traditional operational support requirements for equipment procurement, salary supplements, fuel and vehicle maintenance continue to generate substantial funding requirements that INL will aim to meet in FY 2003. These and logistical support requirements will increase as the GOB provides enhanced coverage of the Yungas, Beni/Pando and east and south Bolivia, to stem the tide of Peruvian cocaine products being transshipped through Bolivia and prevent the importation of precursor chemicals from neighboring countries such as Argentina, Brazil and Chile.

The success of interdiction efforts will continue to be dependent upon effective intelligence gathering and analysis. Therefore, procurement of communications equipment, accessories and spare parts necessary to maintain and expand secure communications is especially critical to eradication and interdiction forces that face the possibility of violent ambushes and attacks from coca growers and traffickers in the Chapare and Yungas. The Special Intelligence and Operations Group (GIOE) will grow by nearly 30 percent to meet the challenges of, and provide intelligence support for, increasingly complex and sophisticated counternarcotics operations.

INL expects to provide funding to enable the new canine training facility in Cochabamba to increase 20 percent to 70 teams in FY 2003 to meet increasing demand of interdiction operations. The International Anti-Narcotics Training Center (Garras Del Valor) will increase its faculty and broaden its curriculum to include more varied professional police training aimed at increasing efficiency and operational effectiveness. The International Waterways Law Enforcement Training School will expand in FY 2003 to handle more BDTF students and to broaden its curriculum to include more law enforcement and leadership classes. The BDTF budget for FY 2003 will support completion of a multi-year effort to overhaul the fleet of supply ship and patrol craft, the upgrading and replacement of antiquated equipment and modest personnel increases. It also anticipates instituting a yearly purchase of Zodiac patrol boats and 40 hp motors to replace aging equipment.

The expansion of interdiction operations in the Yungas region and along the borders will accelerate normal wear and tear of a rapidly aging fleet of USG-provided vehicles. Support for two new vehicle maintenance facilities in the Yungas will be increased. Slow and difficult ground transportation in the Yungas will also require increased reliance on the three C-130 and one King Air aircraft. Funding for fuel and vehicle spare parts, previously covered by Foreign Military Financing (FMF), is now provided by INL. The small amount of FMF funding requested for Bolivia in FY 2003 will used solely to procure training, weapons and ammunition that can be funded only from U.S. military sources.

The Alternative Development/Economic Incentives Project

will support broader implementation of alternative development activities in the Chapare and the Yungas through the Counternarcotics Consolidation of Alternative Development Efforts Project (CONCADE) and the Yungas Development Initiative (YDI). These INL-funded, USAID-administered projects directly contribute to projected net coca reduction and prevention of coca replanting by targeting development assistance to communities, business organizations and municipal governments that fully support GOB objectives. Yungas development activities will be geared to reducing net coca cultivation below the legally permitted level of 12,000 hectares. Although CONCADE has reached 10,000 families thus far, farmer needs for technology transfer, credit and productive infrastructure are surpassing our ability to provide them. Eradication figures for the first half of 2001 provide overwhelming evidence that some Chapare families are either reverting to coca production or planting more new coca in the absence of licit alternatives. In the Yungas, cocalero resistance to forced eradication in 2001 caused setbacks in GOB negotiations to reduce coca in southern Yungas in exchange for alternative development assistance. As YDI efforts become increasingly dependent upon negotiated reduction, absent forced eradication efforts, additional resources to foster economic and political incentives will be necessary.

The Administration of Justice/Rule of Law Project

is dedicated to the full reform of the Bolivian criminal justice system to increase transparency, accessibility, efficiency and effectiveness in combating crime and protecting individual rights. With the Code of Criminal Procedure (CPP) implemented in 2001, the Administration of Justice Project in FY 2003 will support GOB efforts to enact complementary legislation, carry out institutional reforms required by the CCP and increase the legal community and general public’s understanding of the CCP. FY 2003 resources will also support improved policing, investigations and prosecutions through programs designed to improve collaboration between prosecutors and police, and the development and equipping of the Forensic Investigative Institute. The support provided will result in the implementation of institutional reforms required by the CCP, including the provision of appropriate training for all judges and prosecutors, the enactment of five of seven proposed complementary laws for the CCP, and the resolution of all cases prosecuted under the previous legal system.

Drug Awareness/Demand Reduction Programs

in FY 2003 will involve an expanded public affairs strategy designed to promote USG interests on drug issues by providing accurate information on counternarcotics policies and drug awareness themes to the media and by enhancing the professionalism of the media (especially on drug-related themes). The consolidation of counternarcotics program successes will require the Bolivian public understanding that the cultivation of coca and its processing into cocaine is a serious problem for Bolivia, and that interdiction, eradication and alternative development programs are part of an integrated strategy to get Bolivia out of the coca/cocaine circuit.

Program Development and Support

funds are used for the salaries and benefits of U.S. and foreign national direct hire and contract personnel, International Cooperative Agreement Administrative Support Services (ICASS) costs, field travel and other administrative and operating expenses for program planning, design, implementation, monitoring and evaluation.

Effectiveness Measurements

    • The residual coca is eliminated (and new plantings prevented) in the Chapare and illegal coca is eliminated in the Yungas;
    • Viable, licit employment and income-earning alternatives for 8,000 additional families who have been growing coca in the Chapare are created;
    • The value of licit produce leaving the Chapare increases to $80 million in value and 300,000 metric tons in volume from the FY 2000 levels of $44 million in value and 200,000 metric tons in volume;
    • The availability of water, sanitation, electricity, education, health care, roads and market linkages in the Yungas is improved;
    • The size of the illegal coca sub-economy and the amount of coca exports is decreased;
    • The number of arrests and successful prosecutions of major drug traffickers is increased;
    • Interdiction operations along Bolivia’s borders is substantially increased to head off increasing influx of drug trafficking activity resulting from the implementation of Plan Colombia;
    • The number of cases completed in the criminal courts within the legally prescribed time periods is increased;
    • The number and amount of seizures of cocaine and other illicit coca derivatives, precursor materials, and assets of the coca trade are increased; and
    • The awareness of the local populace of the dangers of drug abuse and trafficking to Bolivia’s economy and society is increased.

    Bolivia

    INL Budget

    ($000)

     

    FY 2001

    FY 2002

    FY 2003

    Narcotics Law Enforcement

         

    Ground Operations Support

    8,873

    16,030

    13,080

    UMOPAR, GIOE, GISUQ, GIAF, K-9, Training Center, FELCN and OPR

         

    Air Operations Support

    5,000

    7,000

    8,000

    Red Devils, Black Devils, UH-1H Conversion

         

    Blue Devils Task Force

    900

    2,240

    1,200

    Green Devils Task Force

    4,200

    4,730

    6,020

    Field Support and Infrastructure

    1,000

    1,800

    2,500

    Seized Assets

    400

    600

    800

    Controlled Substance Prosecutors

    1,200

    1,400

    1,600

    Subtotal

    21,573

    33,800

    33,200

    Eradication Operations

         

    DIGECO, DIRECO, Ecological Police and JFT

    6,888

    9,380

    9,800

    Administration of Justice1

    2,000

    4,000

    3,500

    Alternative Development

         

    Alternative Development

    18,000

    29,000

    38,500

    Balance of Payments

    Subtotal

    18,000

    29,000

    38,500

    Drug Awareness/Demand Reduction

    800

    1,000

    1,930

    Program Development and Support

         

    U.S. Personnel

    550

    800

    865

    Non-U.S. Personnel

    999

    1,100

    1,190

    ICASS Costs

    340

    450

    495

    Program Support

    850

    1,470

    1,520

    Subtotal

    2,739

    3,820

    4,070

    Total

    52,0002

    81,000

    91,000

    1 This is an INL-funded and USAID-administered program.
    2 This total does not include $110 million of FY 2000 Plan Colombia Emergency Supplemental funding.

    Brazil

    Budget Summary

    ($000)

    FY 2001 Actual

    FY 2002 Estimated

    FY 2003 Request

    2,0001

    6,000

    12,000

     

    1 This total does not include $3.5 million of FY 2000 Plan Colombia Emergency Supplemental funding.

    Objectives

    • Promote a strong legal structure for narcotics law enforcement and money laundering control;
    • Reinforce Government of Brazil (GOB) efforts to improve the institutional capabilities of the Federal Police to disrupt the activities of major trafficking organizations, interdict illegal drugs and control precursor chemicals;
    • Support programs to enhance the ability of the criminal justice system to investigate and successfully prosecute drug traffickers; reduce money laundering and dismantle international criminal organizations;
    • Promote improved cooperation and coordination between federal and state law enforcement authorities; and
    • Increase public awareness of the dangers of drug trafficking and drug abuse, and enhance the effectiveness of Brazilian organizations seeking to reduce the domestic demand for drugs.

    Justification

    Brazil shares its borders with the three major drug source countries in the region and the sparsely populated Amazon region comprises more than one half of the country. The implementation of Plan Colombia has increased concern over the potential spillover of narcotics activity into Brazil. The country’s long, porous borders, its well developed communications infrastructure and banking system, and the presence of major international air and sea ports, continue to make it a desirable transit route for illicit narcotics bound for the U.S. and European markets. These factors, coupled with increasingly successful enforcement efforts in neighboring countries, contribute to a growing drug transit problem in Brazil.

    In response to these concerns, Brazil, in late 2000, implemented Operation COBRA, an ambitious Brazilian government inter-agency effort that allocates greater resources in the Amazonian border area for security and illegal narcotics control. INL has increased its counternarcotics support to Brazil, in the context of the Andean Regional Initiative, largely with assistance for Operation COBRA.

    FY 2003 Programs

    The increased resources requested for Brazil will support Brazilian programs designed to combat the growing problem of cross-border narcotics trafficking, such as Operation COBRA. These programs are consistent with the Administration’s objectives for the Andean Regional Initiative for Colombia and the bordering countries. INL resources will also reinforce Brazilian efforts to combat money laundering and promote effective public awareness/demand reduction programs.

    The FY 2003 request for the Narcotics Law Enforcement Project will provide operational support and equipment to the Brazilian Federal Police, Division of Drug Enforcement (DRE) to conduct more effective investigations and interdiction operations against international narcotics cartel leaders and their associates. The project will also assist the counternarcotics activities of the Brazilian National Public Safety Secretariat (SENASP) and local police forces, and promote improved coordination of counternarcotics activities within Brazil’s law enforcement community. Project funds will be used to procurement riverine craft, motors, vehicles, communications equipment, computers and GPS systems.

    While the Narcotics Law Enforcement Project supports DRE operations (including air mobility) countrywide (including the Amazon and northern border regions), the project is focused on assistance to the DRE as it relates to Operation COBRA. The aim of Operation COBRA is to strengthen the law enforcement presence and control in the Amazonian border area. INL support to Operation COBRA in FY 2003 will include assistance for aircraft operations, maintenance and repair. The project will also contribute to the establishment of a Brazilian Federal Police Fluvial/Counternarcotics Operations Center in the Amazon that will complete the Amazon Surveillance System (SIVAM), an integrated air- and land-based radar system scheduled to become operational in mid-2002. The center will facilitate comprehensive surveillance and interdiction of narcotics traffickers operating over waterways, land and air, using resources such as riverine and maritime platforms integrated into the SIVAM network.

    This project will build on previous USG training provided to Brazil. Training in FY2003 will address the need to develop a strong legal structure for narcotics and money laundering control and will include courses in arms trafficking and witness protection programs. Recipients of training to combat money laundering will include members of the Finance Ministry’s Council for the Control of Financial Activities (COAF), which is responsible for the enforcement of Brazil’s money laundering statutes. The project will also assist Brazil’s efforts to improve communications and cooperation between federal and state law enforcement authorities.

    The recognition of the seriousness of the increase in drug use in Brazil, particularly among young people, has led to the passage of drug legislation that emphasizes demand reduction. In FY 2003, the Drug Awareness/Demand Reduction Project will increase support for demand reduction programs through the National Anti-Drug Secretariat (SENAD), focusing on the production of a national survey of narcotics abuse patterns and on drug education programs. The project will also further increase public awareness of the drug problem and build public support for counternarcotics efforts by providing grants to individual state drug councils, federal and state government agencies; university educational research and treatment groups; and private organizations and youth programs.

    Program Development and Support funds provide the necessary resources for salaries and benefits of U.S. and foreign national direct hire and contract personnel, International Cooperative Administrative Support Services (ICASS) costs and other general administrative and operating expenses for program planning, design, implementation, monitoring and evaluation.

    Effectiveness Measurements

      • Increased number and amount of cocaine seizures;
      • Increased number of drug-related, money laundering arrests and prosecutions;
      • Successes in dismantling major cartel operations;
      • Increased, and more effective, GOB presence in the Amazon region that deters illegal drug activities;
      • Increased drug awareness and decreased illicit drug demand; and
      • Improved public support and political will for law enforcement efforts.

      Brazil

      INL Budget

      ($000)

       

      FY 2001

      FY 2002

      FY 2003

      Narcotics Law Enforcement

           

      Commodities

      780

      4,300

      9,000

      Training

      200

      300

      450

      Other Costs

      400

      600

      1,400

      Subtotal

      1,380

      5,200

      10,850

      Drug Awareness/Demand Reduction

      200

      300

      600

      Program Development and Support

           

      U.S. Personnel

      120

      150

      160

      Non-U.S. Personnel

      50

      60

      70

      ICASS Costs

      110

      140

      160

      Program Support

      140

      150

      160

      Subtotal

      420

      500

      550

      Total

      2,0001

      6,000

      12,000

      1 This total does not include $3.5 million of FY 2000 Plan Colombia Emergency Supplemental funding.

      Colombia

      Budget Summary ($000)

      FY 2001 Actual

      FY 2002 Estimated

      FY 2003 Request

      48,0001

      380,500

      439,000

       

      1 This total does not include $838.5 million of FY 2000 Plan Colombia Emergency Supplemental funding.

      Objectives

      • Eliminate the cultivation of coca leaf and opium poppy;
      • Strengthen Government of Colombia capabilities to disrupt and dismantle major drug trafficking organizations and prevent their resurgence;
      • Destroy the cocaine and heroin processing industries and stop the diversion of licit chemicals into illicit channels;
      • Strengthen Government of Colombia capabilities to establish the Rule of Law throughout its territory, reducing the numbers of Illegal Armed Groups.

      Justification

      INL funding supports Government of Colombia (GOC) efforts to counter the illegal narcotics industry and the threat that drug cultivation, production, and trafficking poses to the stability of Colombia’s democracy and economy, and to counter the threat such activities present to the security, health, and well being of U.S. citizens at home and abroad. The $48 million of the FY 2001 Colombia program budget was supplemented by $1.3 billion in FY 2000 Emergency Supplemental provided by the U.S. Congress in support of Plan Colombia, of which $838.5 million went for assistance to Colombia alone. This supplemental funding continues to be used to meet critical Colombian needs for helicopters, base security improvements, justice sector reform, human rights protection, and expanded counternarcotics alternative development assistance.

      Requested FY 2003 funding will allow the U.S. and GOC to build upon the initial successes of the Plan Colombia assistance package. In 2001, the aerial eradication program had a banner year and spray planes treated over 84,000 hectares of coca. This represents an increase of 78 percent over the 2000 total and a 54 percent increase over the previous record year for eradication, 1998. Interdiction programs in Colombia also exceeded expectations in 2001. The three battalions of the Colombian Army (COLAR) Counterdrug (CD) Brigade destroyed 21 cocaine-processing laboratories and over 800 cocaine base laboratories, more than doubling the goals set for the COLAR CD Brigade. The COLAR CD Brigade also provides valuable ground support for aerial eradication missions and has limited the hostile ground-fire that spray pilots often encounter otherwise. Similarly, the Colombian National Police (CNP) Directorate of Anti-Narcotics (DIRAN) surpassed their own yearly goals with the destruction of 63 cocaine-processing laboratories, over 334 cocaine base laboratories and 5 heroin laboratories.

      Plan Colombia efforts in 2001 created an Early Warning System to prevent massacres and forced displacement, provided assistance to thousands of Colombia’s internally displaced, and supported protection and justice sector reform programs that helped improve Colombia’s human rights climate. GOC political will to combat the narcotics trade was demonstrated by the extradition of 23 Colombians to the U.S., a seven-fold increase in the number of extraditions over the previous year.

      USAID supported medium- and long-term alternative development programs concentrated in Putumayo and Caqueta, the areas of Colombia’s densest coca cultivation. In the Putumayo Department, 33 voluntary coca eradication agreements were signed with 37,000 families for the eradication of as many hectares of coca. Nevertheless, the security threat and lack of viable economic infrastructure in the Putumayo pose formidable obstacles. In recognition of these problems, the GOC and USG plan to refocus alternative development during FY 2002 and FY 2003 to initiate voluntary eradication agreements with entire communities that require the immediate eradication of coca; to emphasize infrastructure development, as opposed to crop substitution; and to expand activities beyond southern Colombia to neighboring departments where a greater number of legal economic activities already exist and have shown a potential for success.

      FY 2003 Programs

      FY 2003 funding will build upon this positive progress with counternarcotics assistance for the DIRAN and other CNP elements, the National Narcotics Directorate (DNE), the National Plan for Alternative Development (PNDA), elements of the Colombian Military (COLMIL) involved in counternarcotics, and other Colombian government entities. It will also provide operational funds to dismantle narcotics trafficking organizations by strengthening those institutions responsible for the investigation of crimes, evidence gathering, arrests, prosecutions, asset seizures, and other law enforcement actions—including programs to stop the diversion of licit chemicals into illicit channels. Other project activities include improving coordination of CNP and military counternarcotics actions, completing infrastructure support programs, supporting counternarcotics alternative development, improving the security of Colombia’s ports and airports, and sustaining public awareness and education projects. Rule of Law projects will include continuing support to the CNP to reestablish public security in the rural areas, strengthening the planning and management capability of the civilian Ministry of Defense, and encouraging members of the Illegal Armed Groups to leave the battlefield and be reinserted into society.

      The programs requested in the FY 2003 budget are integrated into, and supportive of, Plan Colombia, the GOC’s comprehensive national strategy for peace and control of the narcotics trade. Plan Colombia’s objectives are realistic, but long term and President Pastrana’s successor is likely to employ a similarly balanced approach to Colombia’s counternarcotics problems after the 2002 elections. This budget request recognizes the interrelated nature of Colombian counternarcotics efforts and the peace process, and will sustain the incomplete, yet tangible progress, underway on both fronts.

      The principal focus of the INL-funded counternarcotics program is support for the counternarcotics activities CNP DIRAN and the COLMIL’s counternarcotics initiatives, particularly those of the COLAR CD Brigade and the COLAR Aviation Brigade. USG assistance will concentrate on discouraging Colombian cultivators or would-be cultivators of illicit crops through a combination of eradication, interdiction and alternative development programs. Aerial eradication continues to be the safest, most cost-effective law enforcement mechanism to deter cultivation, and in 2003 spray planes will be called upon to be able to cover all of Colombia’s illicit cultivation zones. While the spray program had a record year in 2001, the well-publicized GOC February through November cessation of spraying in Putumayo—and subsequent extensive replanting there—reconfirmed the lesson that comprehensive and repeated spraying is the best way to prevent growers from playing the odds and investing in coca once more. Importantly, record spray numbers in 2001 came despite the fact that the number of spray planes did not increase markedly from the year before. The program expects to have eight new spray planes procured with FY 2000 Emergency Supplemental funds) operational in late CY 2002 which should help the Colombian government develop a sufficiently robust aerial eradication capacity that, combined with a strong alternative development program, will convince farmers that continuing to grow illegal crops is both uneconomic and futile. On October 4, 2001, the GOC signed into law a new compensation process for legal crops sprayed in error. This process will provide for faster investigation and resolution of complaints and will boost the credibility of the spray program. The GOC will direct the process with funds provided by the USG.

      The United States will continue to encourage coordinated operations between the CNP and COLMIL—and particularly with the COLAR CD Brigade and the Marine Riverine Units to produce a substantial net decrease in illicit cultivation and simultaneous destruction of cocaine production and trafficking facilities. With the process of standing up a second CD Brigade, due to begin in 2002, and an expansion of the Marine Riverine units, the GOC will be ready to expand CD Brigade operations beyond the southern departments of Putumayo and Caqueta and into other drug producing regions. Funds will be directed at on-going training and equipment needs for these units and support for the helicopters required to provide air mobility for the brigades to fulfill their mission. The effort in southern Colombia will also rely heavily upon the expansion of the DIRAN Air Service and Airmobile Companies and the establishment of Forward Operating Locations (FOLs) for the various public security elements involved in counternarcotics operations. Simultaneously, the U.S. will continue to support the DIRAN’s opium poppy eradication campaign, which aims to reduce the poppy crop to negligible levels. The United States will also continue support to Colombia’s alternative development efforts in areas where illegal drug crops are grown. USG assistance to this project will reinforce eradication efforts by providing viable alternatives for small farmers currently dependent on illicit cultivation and help those persons displaced by counternarcotics efforts.

      The United States will also provide continued support for CNP operations aimed at the destruction of emerging narcotics trafficking syndicates through the arrest and prosecution of syndicate leaders and the confiscation of their assets, and to discourage money-laundering activity. Similarly, funding will support projects to improve the efficiency of Colombia’s court and prison systems. Finally, U.S. assistance will sustain GOC drug awareness and education programs that seek to dissuade Colombians from engaging in illegal drug use and trafficking.

      The Support to the Colombia National Police Project supports the DIRAN units involved in eradication and law enforcement interdiction operations. The FY 2003 request is slightly less than that of the previous year. This decrease is made possible by successful institution building within the DIRAN. Funding will allow the CNP to continue to play a central role in the effort to combat the narcotics trade as close to the source as possible and recognizes that eradication and interdiction operations will require the capacity to extend operations beyond traditional growing areas. The expansion of eradication efforts will again require substantial support for the CNP Air Service, including aircraft parts and maintenance, aviation fuel and lubricants, herbicide and other aviation-related support costs. These include pilots and rotary- and fixed-wing maintenance and logistics technicians funded by INL. INL funding will be used to upgrade DIRAN intelligence aircraft, and procure additional helicopters and/or fixed-wing aircraft. In addition, INL will provide funding for a variety of DIRAN operating costs, including such items as maintenance and fuel for INL-supplied and CNP-owned vehicles, office supplies and equipment, maintenance of communications and other equipment, utility costs, and minor facilities maintenance and repair.

      The Support to the Colombia Military Project will provide assistance to military units that provide support for DIRAN aerial eradication efforts and conduct independent counternarcotics operations. Chief among these needs will be the COLAR Aviation Brigade. In addition to the understandable demand for ammunition and fuel, there will be a demand for spare parts and maintenance, complicated by the fact that three distinct platforms are in use: UH-1N, Huey II, and UH-60. Additionally, there is a continuing need to train replacement pilots.

      This project will also provide money to train, equip, and sustain a second COLAR CD Brigade while providing some operational support for the first. In order to do their jobs, CD Brigade members will need a sustained supply of field and communications gear, as well as weapons and ammunition. Continued training support is also needed so that new troops can be readied to replace those lost to attrition. This unit, like its predecessor, must be vetted by the U.S. Embassy, which will also have continuing end-use monitoring and human rights monitoring obligations that will require sustained USG funding.

      The Narcotics Interdiction Project will provide INL funding to support the Air Bridge Denial program (assuming program approval) and a dedicated C-130 unit to provide airlift support to the DIRAN and COLMIL for CN operations. Funding will be increased for the Colombian Navy and its Marine branch in order to continue and expand their counternarcotics campaign on the rivers and the coast. The vast majority of cocaine departs Colombia on small vessels, such as fishing and go-fast boats. Equipment, training, and technical assistance will be provided to Colombian riverine and coast guard harbor patrol programs.

      The Alternative Development Program is an INL-funded, primarily USAID-administered program implemented in carefully selected drug growing regions. The project works in conjunction with PNDA, the GOC’s alternative development program, and aims to implement a full array of sustainable counternarcotics activities, including the cultivation of alternate legal crops, infrastructure expansion, environmental management, and program monitoring support. Alternative development and related social development programs are time and resource intensive, and will be implemented in combination with eradication operations. Programs to provide licit employment alternatives to former cultivators of drug crops will be expanded to areas where the security situation permits, and where there is a greater possibility of sustainable licit economic activity. Increased funding levels for alternative development and social programs will be required as eradication operations expand in scope and intensity. Ongoing projects continue to demand resources even as new areas are added to the program.

      The Support For Democracy Project will support a variety of USAID implemented programs. Given the fundamental importance of human rights to the INL program in Colombia, projects in the area of judicial reform, particularly programs meant to enhance the physical protection of witnesses, judges and human rights workers, will require continued support. The same is true for Colombia’s human rights investigative units. In addition to the support for these investigative units, funding will continue to be provided to improve the physical security of human rights monitors and activists. Funds will continue to be provided to the United Nations High Commissioner for Human Rights to assist its local offices, and for human rights monitoring efforts of both the Colombian Government and the U.S. Embassy.

      The Assistance to Vulnerable Groups Project will extend support to people displaced by violence as well as displaced populations resulting from the destruction of illicit narcotics activity in areas where alternative development has little chance for success. USAID and the Department of State’s Bureau of Population, Refugees and Migration will continue to provide assistance to internally displaced persons. This assistance is provided primarily through grants to international organizations such as the International Committee of the Red Cross and UNICEF. These efforts are coordinated with PNDA and other elements of the Government of Colombia.

      The Promote the Rule of Law Project will continue the justice sector reform programs designed to establish Fiscalia HR units, fight corruption, enhance the capability to go after financial crime and money laundering, and improve prison and port security. Rule of law funding will continue to re -establish a CNP presence in zones of conflict, as public security is the first step to reestablishing government control throughout Colombia. This funding will also continue assistance to programs that promote the reinsertion of former illegally armed actors into lawful Colombian society and continue institution building reforms within the Ministry of National Defense. This project will also fund community based Drug Awareness and Demand Reduction programs and support efforts to publish and disseminate narcotics education and prevention materials; design and implement public drug awareness campaigns; and sponsor conferences and visits in support of the above activities.

      Program Development and Support

      funds provide required resources for salaries, benefits and allowances of permanently-assigned U.S. and foreign national direct hire and contract personnel, short-term TDY assistance, and other general administrative and operating expenses for program planning, design, implementation, monitoring and evaluation.

      Effectiveness Measurement

        • Reduced flow of illegal narcotics from Colombia to the U.S.;
        • Sharp reduction of illicit crop cultivation will be achieved;
        • The GOC will move toward Colombian self-sufficiency in managing eradication programs targeted at all illicit cultivation;
        • The GOC will have developed more effective institutions capable of carrying out the full range of law enforcement activities necessary to prevent narcotics traffickers from using Colombia as their center of activity;
        • Emerging narcotics trafficking organizations will be dismantled;
        • Colombian institutions will be stronger and more capable of combating corruption and intimidation and of expediting proceedings against drug traffickers; and
        • The GOC will have achieved successes in the seizure of major trafficker assets and in the disruption of money laundering activities; and
        • The GOC will have improved public security in the rural areas of Colombia.


        Colombia

        INL Budget

        ($000)

         

        FY 2001

        FY 2002

        FY 2003

        Support to the Colombia Military

           

         

        COLAR CD Brigades

        1,900

        9,650

        25,000

        COLAR Aviation Brigade

        69,000

        76,250

        Subtotal

        1,900

        78,650

        101,250

        Narcotics Interdiction

         

         

         

        Colombian Air Force

        14,000

        15,000

        Colombian Navy

        500

        11,350

        32,250

        Subtotal

        500

        25,350

        47,250

        Support to the Colombia National Police

        39,950

        134,100

        120,500

        Support for Democracy1

        24,000

        24,000

        Alternative Development1

        500

        56,500

        54,500

        Assistance to Vulnerable Groups2

        34,000

        45,500

        Promote the Rule of Law

             

        Expand Fiscalia Human Rights Units

        10,000

        Follow-On Financial Crimes

        1,000

        10,000

        Anti-Kidnapping Strategy

        3,600

        5,000

        Bomb Squad/Explosive Database Center

        1,750

        Prison Security/Drug Rehabilitation Training

        2,300

        Cellular Intercept Switch Project

        750

        Ministry of Defense Human Rights Reform

        2,500

        1,200

        Illegal Armed Groups/Reinstatement into Society

        2,000

        2,000

        Protection of Human Rights Workers

        2,500

        1,000

        Protection of Witnesses, Prosecutors and Judges

        1,500

        1,000

        DNE and Demand Reduction

        550

        500

        500

        Culture of Lawfulness Program

        300

        100

        300

        Reestablish Public Security in Conflicted Zones

        4,000

        9,000

        Subtotal

        850

        22,500

        40,000

        Program Development and Support

             

        U.S. Personnel

        1,375

        1,680

        1,750

        Non-U.S. Personnel

        776

        1,326

        1,330

        ICASS Costs

        475

        725

        900

        Program Support

        1,674

        1,669

        2,020

        Subtotal

        4,300

        5,400

        6,000

        Total

        48,0003

        380,500

        439,000

        1 These are INL funded and USAID administered programs.
        2 These are INL funded and PRM and USAID administered programs.
        3 This total does not include $838.5 million of FY 2000 Plan Colombia Emergency Supplemental funding.

        Ecuador

        Budget Summary ($000)

        FY 2001 Actual

        FY 2002 Estimated

        FY 2003 Request

        2,2001

        25,000

        37,000

         

        1 This total does not include $20 million of FY 2000 Plan Colombia Emergency Supplemental funding.

        Objectives

        • Increase the effectiveness of existing highway checkpoints and add new ones at critical locations in areas bordering Colombia;
        • Strengthen counternarcotics enforcement and military units in northern border areas to improve overall border security and effectiveness of narcotics interdiction operations;
        • Develop communications networks to improve operational coordination and better exploit drug intelligence;
        • Develop institutional capabilities to interdict illegal drugs and controlled chemicals, prosecute traffickers, and seize illicit drug assets;
        • Improve Ecuadorian National Police control of airports, seaports, and land routes used by traffickers to transport illegal narcotics and diverted precursor chemicals;
        • Constrain the growth of the coca/cocaine economy;
        • Increase licit income and employment opportunities; and
        • Increase citizen satisfaction with the performance of local democratic institutions.

        Justification

        With the acceleration of drug eradication and interdiction programs in neighboring Colombia, it is anticipated that Ecuador could be drawn increasingly into conflict with the narcotics-insurgent groups that control the Colombian drug crop cultivation regions and, as a result, will face an even greater threat to its internal stability. The security situation along Ecuador’s northern border, particularly in Sucumbios province where most of Ecuador’s oil wealth is located, has continued to deteriorate due to increased Colombian guerrilla, paramilitary and criminal violence, as well as increasing social unrest fueled by chronic and increasingly high levels of poverty. As fiscal constraints in Ecuador have restricted the government’s funding for the police, the Ecuadorian National Police (ENP) will need additional assistance to confront the increased drug trafficking and cultivation threat on its northern border. The Ecuadorian military, which is responsible for northern border security and supports the ENP in counternarcotics operations, will require sustained logistical support in order to increase its northern border presence and operational readiness. Perhaps less obvious is the need of the vulnerable population of the northern border areas to strengthen its licit economic base and community infrastructure, which will help to build public support for local democratic institutions and enable the community to better resist the pressures of criminal elements and the illicit coca/cocaine economy.

        The ports through which drugs transit Ecuador are also an important part of the USG counternarcotics focus in country. Ecuador is a major staging and transshipment area for drugs and precursor chemicals due to its geographical location between two major cocaine source countries, Colombia and Peru, with cocaine and heroin entering primarily by truck on the Pan-American Highway. Narcotics traffickers exploit Ecuador’s porous borders and poorly controlled seaports to consolidate smuggled drugs into larger loads for bulk shipment to the United States and Europe hidden in containers of legitimate cargo. Precursor chemicals imported by ship into Ecuador and precursors produced in Ecuador are diverted to cocaine processing laboratories in southern Colombia.

        In July 2001, the new Ecuadorian criminal justice procedural code entered into force. The new code fundamentally transforms the country’s legal system from an inquisitorial to a more accusatorial-style system. The purpose of the reform is to strengthen the criminal justice system and speed up the process by converting to oral trial procedures. Under the new system, the roles of police, prosecutors, judges and other elements of the legal system are profoundly changed. This criminal justice reform requires extensive USG technical assistance to retrain judges, prosecutors, police and other components of the criminal justice system. The USG has initiated a new project establishing a judicial police-training program, which will strengthen forensic and criminal investigative skills. Related USG efforts to train judges are on going.

        FY 2003 programs

        Spillover effects from Colombia will continue to threaten the internal stability of Ecuador over the next two years, while ongoing GOE fiscal constraints severely restrict GOE budgetary support for the police. USG support to the ENP, as well as to alternative development, selected components of Ecuador’s military, and Ecuador’s national drug commission (CONSEP), is essential to confront the increased drug trafficking and cultivation threat on its northern border.

        The Narcotics Law Enforcement Project will expand the range of ENP operations to confront the growing narcotics trafficker and insurgent threat on its northern border and support the efforts of the ENP to professionalize its personnel. USG assistance will enable the ENP to further develop communications networks to improve operational coordination and better exploit drug intelligence, will provide aircraft to enhance police mobility and, emphasizing support for counternarcotics units in the northern border areas, will procure additional supplies and equipment; fund facilities construction, security and other upgrades, and provide vehicle maintenance and other assistance. The project will expand police training programs to include interdiction training, courses on investigative techniques and other subjects, which will professionalize and train counternarcotics police units in their new roles in the accusatorial style criminal justice system. A U.S. police advisor position will be established to provide technical assistance on investigative techniques and intelligence collection. In addition, the project will develop and implement a public affairs strategy to support the USG’s counternarcotics objectives.

        The Northern Border Security Project will provide counternarcotics assistance to the Ecuadorian military in order to strengthen their capacity to provide security in northern border areas and to improve coordination and logistical cooperation with the ENP. This project includes procuring communications equipment, expanding and upgrading the ground transportation fleet, purchasing small coastal patrol craft for the Ecuadorian Navy, and providing fuel and operational support for Ecuadorian Army helicopters used in counternarcotics missions. Additionally, the project will provide counternarcotics training courses for the Ecuadorian Army and Navy, and develop and implement a public affairs strategy to support USG security assistance programs.

        The Port Security and Control Project will focus attention on achieving better control of the air and seaports in this country. The bulk of cocaine and heroin from Colombia and Peru that transits Ecuador is smuggled out of seaports and airports concealed in shipments of legitimate cargo being exported to the U.S. and Europe. Currently the ENP, responsible for the physical inspection of all outbound and inbound cargo, has the capability to inspect only a small percentage of outbound cargo. The Sea and Airport Control Project will assist the ENP with new equipment and technological tools to physically inspect export containers and bulk cargo in the ports, and operational support to the canine units, essential to the sea and airport inspection service. The project will provide operational support and training in container inspection techniques, profiling, exploitation of intelligence and information systems, to ENP port inspection units at the planned new cargo inspection facilities in Manta, Machala and Esmeraldas. It will also establish data telecommunication links between seaport/airport ENP inspections units and the Guayaquil Information Center (JICC—linked to DEA/EPIC), to exchange investigative information and facilitate profiling techniques against suspicious export shipments and shippers, developing JICC databases to interconnect with the Quito ENP/Anti-Drug Division Intelligence Center. The advisory presence of a U.S. Customs Inspector will strengthen ENP coordination with the Ecuadorian Navy and Customs, which will lead to an increase in intelligence sharing and operational effectiveness.

        The Alternative Development Project will be administered by USAID. USAID will intensify work with the GOE and other partners to support alternative, licit production options that will create a protective barrier along Ecuador’s increasingly vulnerable northern border. The economy of this region has simply escaped the control of the GOE in recent years and increasingly has provided direct support for illicit activities based in Colombia. A USG agreement with the International Organization for Migration (IOM) initiated in FY2001 a chain of community infrastructure projects across the three principal border provinces of Sucumbios, Carchi and Esmeraldas. FY 2003 alternative development funding will help initiate productive activities in these provinces and in Napo and Orellana provinces, which are increasingly vulnerable to cross-border influence from Colombia. The project will focus on agricultural programs, construction and rehabilitation of productive and social infrastructure, and strengthening local governments and civil society organizations, including, as needed, assistance to mitigate the effects of refugee influx from the conflict in Colombia. The project will also publicize USG-funded development work in the northern border region.

        The Drug Policy and Legal Reform Project

        will support the national drug commission (CONSEP), which is responsible for drug policy development and coordination, operating a chemical control program and anti-money laundering unit, promoting drug prevention campaigns, and managing properties seized from drug traffickers under the asset forfeiture provisions of Ecuador’s drug laws. It has primary responsibility for certifying drug treatment and rehabilitation programs in Ecuador and for developing drug education and prevention campaigns. CONSEP’s comprehensive national drug strategy assigns clear roles to government agencies and military services in the fight against drug trafficking. Currently, CONSEP is coordinating a government-wide effort to reform the existing Ecuadorian National Drug Law (Law 108). Reforms proposed include broadening the scope and definition of money laundering as that derived from any illicit activity, and authorizing the use of controlled deliveries, electronic surveillance and other modern law enforcement techniques. The project will reinforce technical assistance given to CONSEP by OAS/CICAD to reform this law, will provide funding for additional computer equipment for the CONSEP chemical control unit and provide training assistance to the money-laundering unit. The project will also expand assistance to the CONSEP drug prevention and education programs to generate greater political support for tougher law enforcement actions against drug traffickers. In addition, the project will provide additional training and operational support to strengthen CONSEP in its policy development and coordination role.

        Program Development and Support

        funding is used to pay for administrative and operating expenses for program planning, design, implementation, monitoring and evaluation. These expenses would include, but are not limited to, salaries, benefits and allowances of U.S. and foreign national direct hire and contract personnel, field travel and International Cooperative Administrative Support Services (ICASS) costs.

        Effectiveness Measurements

          • Voice and data systems will link the two ENP counternarcotics information centers in Quito and Guayaquil with interdiction units at key highway checkpoints and provincial counternarcotics offices;
          • Police training programs including courses in investigative techniques, forensic science, evidence collection and handling, chain of custody, and working as a team with prosecutors will have reached all investigative personnel in the judicial and counternarcotics police;
          • Counternarcotics police will all have sufficient appropriate equipment to fulfill their responsibilities effectively and safely;
          • Seizures of illicit drugs will increase by at least 10 percent;
          • Ecuadorian military forces will have extended security patrols throughout the northern border area and will perform them with greater frequency;
          • The GOE and the general public will have a clearer understanding of the threat drug trafficking poses to their own society, and the need to combat it forcefully;
          • New coca cultivation will remain minimal;
          • Employment and incomes from licit activities will increase; and
          • Citizen satisfaction with the performance of local governments and community infrastructure will increase.


          Ecuador

          INL Budget

          ($000)

           

          FY 2001

          FY 2002

          FY 2003

          Narcotics Law Enforcement

               

          Law Enforcement Support

          1,200

          5,500

          4,000

          Northern Border Security

          5,815

          15,250

          Port Security and Control

          450

          3,000

          1,000

          Subtotal

          1,650

          14,315

          20,250

          Alternative Development1

          10,000

          16,000

          Drug Policy and Legal Reform

          27

          35

          50

          Drug Awareness/Demand Reduction

          25

          35

          50

          Program Development and Support

               

          U.S. Personnel

          158

          275

          300

          Non-U.S. Personnel

          35

          40

          60

          ICASS Costs

          116

          150

          200

          Program Support

          189

          150

          90

          Subtotal

          498

          615

          650

           

          _____

          ______

          ______

          Total

          2,2002

          25,000

          37,000

          12 This total does not include $20 million of FY 2000 Plan Colombia Emergency Supplemental funding. This is an INL funded and USAID administered program.

          Panama

          Budget Summary ($000)

          FY 2001 Actual

          FY 2002 Estimated

          FY 2003 Request

          1,3631

          5,000

          9,000

           

          1 This total does not include $4 million of FY 2000 Plan Colombia Emergency Supplemental funding.

          Objectives

          • Assist the Government of Panama (GOP) to implement a comprehensive strategy for criminal justice system reform and modernization via an integrated program, training, and technical assistance plan;
          • Confront transnational organized crime by increasing the institutional capabilities of the Government of Panama to investigate and prosecute criminal activities; seize and forfeit assets; and, dismantle drug and arms trafficking, alien smuggling, terrorist and other criminal organizations;
          • Enhance GOP ability to interdict maritime shipments of illicit drugs, chemicals and weapons, counter alien smuggling and control its airports, seaports, and land routes so as to detect and deter smuggling;
          • Assist the GOP to combat money laundering and other financial crimes and coordinate effectively with international partners; and
          • Assist Panama to develop successful strategies to deter drug use and increase public awareness of the dangers of drug abuse.

          Justification

          As a neighbor of the largest cocaine-producing country, Panama serves as a crossroad for the transshipment of narcotics and other illicit goods. International drug shipments are trafficked through Panama destined for the U.S. and Europe. An ineffective criminal justice system that is undermined by corruption and inadequate maritime, airport, and border controls all contribute to Panama’s vulnerability to transnational organized crime. In addition to drug trafficking, criminal groups engage in money laundering, chemical diversion, arms and stolen vehicle trafficking, alien smuggling and other criminal activities. The steady flow of illicit drugs has taken a toll on Panamanian society by increasing domestic drug abuse.

          Panama is an attractive site for money laundering operations due to its dollar-based economy and large, sophisticated banking and trading sectors. In 2000, the Financial Action Task Force (FATF) determined that Panama was not cooperating effectively with other governments in this area, in part because of institutional weaknesses. As a result of the passage of new legislation and increased prosecutions, Panama was subsequently removed from the FATF list of non-cooperating nations. However, Panama continues to need technical assistance to support its efforts to implement the new legislation and to dismantle the many criminal and terrorist groups engaged in money laundering.

          INL funds are used to support programs and activities critical to the Panamanian national strategy’s success and our shared law enforcement objectives. Technical assistance and equipment provided by INL to law enforcement agencies at the border and in airports has increased the GOP’s capability to interdict drugs. Furthermore, INL has supported interdiction efforts through assistance to the Joint Information and Coordination Center (JICC) that enhanced information sharing and cooperation between U.S. and GOP law enforcement agencies. INL funds have played a key role in interdiction successes of the National Maritime Service (SMN) by providing training, technical assistance and equipment upgrades.

          FY 2003 Programs

          A Criminal Justice Sector Enhancement Project will assist the GOP to develop and implement an integrated strategy for modernizing and improving the criminal justice system. It will focus on helping the GOP develop short-, medium- and long-term training plans for Panamanian judicial, prosecutorial and law enforcement sectors. The project will concentrate on both the management and operational aspects of judicial, prosecutorial and law enforcement training while promoting law enforcement training integration. A case tracking system to improve the effectiveness of the court system, reduce pre-trial detention, and increase accountability will also be developed. These efforts are central to improving the management and execution of criminal justice in Panama while raising the standards of professionalism.

          The Narcotics Law Enforcement Project

          will provide commodities and training to support the Panama National Police (PNP), the National Maritime Service (SMN), and the National Air Service (SAN). These projects will strengthen the ability of the GOP to detect, deter and arrest traffickers, terrorists, and alien smugglers and to interdict drug and precursor chemical shipments. Another project will provide infrastructure, equipment and training for airport and border control facilities to enhance control of the entry of aliens into the country, including drug traffickers and smugglers by improving the skills, mobility, command & control, and communications of GOP law enforcement agencies.

          Further support to improve the capability of the Panamanian law enforcement agencies will be provided to the Joint Information Coordination Center (JICC), the national criminal statistics and analysis agency (CONADEC), and the newly established Andean Region Precursor Chemical Intelligence Center (ARPCIC) to enhance the GOP’s intelligence infrastructure, enabling the security forces to better investigate narcotics trafficking activities. Support to the Public Ministry’s Elite Vetted Unit, Technical Judicial Police (PTJ) and the PNP will increase the GOP’s ability to investigate, arrest, and prosecute Colombian drug kingpins and other organized criminals, and to interdict increased amounts of drugs, precursor chemicals and stolen vehicles. A project to support the recently established Financial Investigations Unit and Panamanian prosecutors will provide training in the detection, investigation and prosecution of sophisticated money-laundering cases. A port security project will be developed to increase the interdiction of illegal goods passing through the Colon Free Zone and Panama’s other ports of entry.

          The NAS will provide support to the Central American Permanent Commission for the Eradication of the Illicit Production, Traffic, Consumption and Use of Narcotic Drugs and Psychotropic Substances (CCP). The CCP was created as an entity within the Central American Integration System (SICA) to develop a regional approach to combat drug trafficking and other transnational crimes. INL funding will strengthen Panama’s leadership role by providing training to Panama’s representative to the CCP.

          The Drug Awareness and Demand Reduction Project will includes Civic Education Prevention and Demand Reduction components. The Civic Education Prevention Project will help curb the spread of drug abuse, crime and violence, and reinforce the rule of law by changing societal attitudes toward crime and corruption. Key activities will include the mobilization of community leaders and education officials, the development of lesson plans and their incorporation into high school curriculums, and teacher training. The Demand Reduction Project consists of working with health and education agencies and NGOs to promote drug abuse prevention, treatment and increased public awareness. The project will help the GOP to develop successful strategies to deter drug use and monitor and evaluate the effectiveness of school drug control strategies.

          Program Development & Support

          funds will provide resources for salaries and benefits for U.S. and foreign national direct hire and contract personnel, International Cooperative Administrative Support Service (ICASS) costs and general administrative and operating expenses for program planning, design, implementation, monitoring and evaluation.

          Effectiveness Measurements

            • Increased effectiveness of criminal justice institutions and personnel as measured by improved performance of personnel, enhanced investigations of official corruption, improved case tracking systems and reductions in pre-trial detention times;
            • Improved curriculum and teaching methods at police training academies, as demonstrated by an increase in the capabilities of graduates;
            • Increased number and importance of traffickers arrested and successfully prosecuted as a result of GOP investigations or cooperative bilateral or regional law enforcement efforts;
            • Increased intelligence and operational coordination of the SMN and SAN as demonstrated by an increase in successful joint interdiction operations against drug trafficking, the diversion of precursor chemicals and other international criminal activities;
            • Increased number of arrests of narcotics traffickers, alien smugglers, terrorists and other criminals entering Panama by air, sea and land;
            • Increased detection and prevention of precursor/essential chemicals diversions (as measured by actions taken on import/export licensing); and
            • Increased public awareness of the dangers of drug abuse, increased community involvement in preventing drug use, and decreased drug use and violence among youth.


            Panama

            INL Budget

            ($000)

              

            FY 2001

            FY 2002

            FY 2003

            Law Enforcement Support

                 

            Commodities

            400

            1,955

            3,000

            Training

            153

            1,200

            2,000

            Other Costs

            300

            900

            1,800

            Subtotal

            853

            4,055

            6,800

            Criminal Justice Sector Enhancement

            100

            150

            750

            Drug Awareness/Demand Reduction

            100

            150

            700

            Program Development and Support

                 

            U.S. Personnel

            170

            250

            270

            Non-U.S. Personnel

            0

            110

            118

            ICASS Costs

            91

            225

            290

            Program Support

            49

            60

            72

            Subtotal

            310

            645

            750

             

            _____

            _____

            _____

            Total

            1,3631

            5,000

            9,000

            1 This total does not include $4 million of FY 2000 Plan Colombia Emergency Supplemental funding.

            Peru

            Budget Summary ($000)

            FY 2001 Actual

            FY 2002 Estimated

            FY 2003 Request

            48,0001

            142,500

            135,000

             

            1 This total does not include $32 million of FY 2000 Plan Colombia Emergency Supplemental funding.

            Objectives

            • Build host nation capabilities that foster the institutionalization of policymaking and policy coordination and ‘Peruvianize’ all aspects of counternarcotics law enforcement and alternative development efforts;
            • Reduce, and ultimately eliminate, the cultivation of coca and opium poppy and the trafficking of drugs in Peru; and
            • Support economic reforms that eliminate the illicit coca cultivation economy.

            Justification

            The principal goal of the U.S. counternarcotics strategy in Peru is to reduce, and ultimately to eliminate, the production and processing of opium poppy and coca. This goal is consistent with the President’s National Drug Control Strategy and the Andean Regional Initiative (ARI), which seeks to deny traffickers the ability to spillover from one country to another as law enforcement successes eliminate established drug cultivation and operational areas. USG assistance is focused on helping the GOP develop an institutional capability to carry out an integrated counternarcotics program including law enforcement, opium poppy and coca reduction, alternative development, public awareness and demand reduction. A consistent INL focus on institutionalization over the years has led to ‘Peruvianization’ of most helicopter operations and maintenance, while USAID has supported Peruvian design and implementation of alternative development programs. The GOP has facilitated institutionalization by creating a cabinet-level counternarcotics agency, called CONTRADROGAS, to provide a Peruvian interagency coordination mechanism on drug matters.

            In coordination with CONTRADROGAS, the USG counternarcotics program provides training, equipment and technical assistance to Peruvian government agencies charged with implementing counternarcotics-related programs, including law enforcement programs to disrupt coca and opium poppy cultivation, wholesale purchase, industrial-scale processing, and export of refined coca products. There is also a focus on dismantling narcotics trafficking organizations, and supporting judicial processes that will lead to the arrest and successful prosecution of key trafficking figures, and the seizure of their assets. USG alternative economic assistance programs are aimed at developing local governments, agricultural credit, rural infrastructure (such as roads), improved farming practices (such as disease control), and access to national and international export markets.

            Despite the political turmoil of the last two years created by the collapse of the Fujimori government, the subsequent legislative appointment of the interim Paniagua government, and the democratic election of the Toledo government in 2001, Peruvian counternarcotics efforts have sustained the law enforcement and coca reduction gains of the last six years. However, new counternarcotics challenges confront the Toledo government. Intensified counternarcotics efforts in Colombia, along with significant Bolivian coca cultivation reductions, have restored Peruvian coca leaf prices to profitable levels for coca-growing communities. Previously abandoned coca fields are being rehabilitated even as forced eradication of coca and alternative development projects continue to make gains in many of the same areas. There is also increasing evidence of a resurgent Shining Path presence in coca growing areas—a complication for alternative development efforts. The Toledo government’s ability to respond to these challenges is impeded by a national economy in recession, 30-40 percent budget cuts for the police and armed forces, as well as a series of floods and earthquakes that left thousands homeless during 2001.

            In 2001, there was further anecdotal reporting of Colombian traffickers encouraging Peruvian farmers to cultivate opium poppy by providing funds and seed. Although no reliable statistics exist on the extent of opium poppy cultivation, the Peruvian police eradicated 26 hectares in 2000. As of November 2001, 150 hectares of opium poppy had been discovered and eradicated. FY-2002 funding will be used to initiate a serious effort to quantify the amount of opium poppy in Peru and to develop the logistical means to reach and eradicate these fields—many of which are in heavily cloud covered, mountainous areas away from roads.

            The current suspension of the air-bridge denial program, due to the accidental shoot-down of an American missionary aircraft by a Peruvian fighter in April 2001, has raised concerns that there are no longer any deterrents to trafficker use of aerial transportation to move drugs and money internationally. USG policy review reports on this subject have emphasized that reinforced procedures and safeguards against the innocent loss of life must be in place before consideration is given to restarting the air-bridge denial program. As of January 2002, no decision had been made on whether to restart the program.

            FY 2003 funding marks a significant turning point in the scale of U.S.-Peruvian counternarcotics law enforcement, drug crop reduction and alternative development. Prior to FY 2002, funding limitations precluded the GOP from pursuing interdiction, eradication and alternative development in several areas simultaneously. With the additional funding requested in FY 2003, the GOP will be able to decrease coca cultivation in several source valleys and intercept coca movement in both the source and transit zones. Greatly increased funding for alternative development will address both long-term infrastructure building, and immediate emergency assistance to generate family income lost to eradication of coca fields. A major program of upgrading aircraft for law enforcement and eradication operations will provide the necessary airlift capability to reach high altitude opium poppy fields and to carry large numbers of personnel to outlying trafficking areas. FY-2003 funds will also allow the Peruvian police to recruit more counternarcotics officers to increase its presence in coca growing areas, intensify operations against drug trafficking organizations, road and river transport of drugs and precursor chemicals, and enhance intelligence collection efforts.

            FY 2003 Programs

            Forced eradication of coca seedbeds and mature coca is the main focus of the Coca and Opium Poppy Eradication Project. In 2001, this program was responsible for eradicating over 6,000 hectares of coca, which offset an increase in coca cultivation attributable to rising coca leaf prices and the elimination of the Bolivian Chapare region as an illicit commercial coca-growing center. The program uses a two-pronged approach to coca and opium poppy eradication. First, it ensures that coca-growing communities that have signed alternative development agreements remain committed to coca reduction, and also boosts the appeal of alternative development for coca farmers; and second, it provides for a labor force to forcibly eradicate coca cultivated in national parklands and other areas not covered under Peruvian alternative development plans.

            The FY 2003 budget will allow increased USG support for expanding opium poppy eradication efforts. Opium poppy eradication occurs in remote high altitude areas that will require significant resources to transport and re-supply law enforcement and eradication workers implementing this program. In FY 2002 and FY 2003, the existing 14 USG-owned Huey UH-1H helicopters will be retrofitted, in phases, to Huey IIs that will provide the greater lift capability needed for this effort.

            In order to make significant inroads against hard-line coca cultivating communities, including the Huallaga and Monzon areas, FY 2003 funds will greatly expand the number of full-time Peruvian coca reduction workers affiliated with the Peruvian Coca Reduction Agency (CORAH), and cover their operating and transportation costs to outlying coca and opium poppy areas. Coupled with an enhanced alternative development program, the bilateral coca reduction strategy seeks to reduce Peruvian coca cultivation from a 2000 baseline of 38,700 hectares, to 24,000 hectares in 2003.

            An affiliated organization of CORAH, called CADA (Coca Survey and Verification), provides a means to verify the extent of coca reduction within communities, which is a critical condition of continued alternative development funding. In 2003, it will also take on duties to assist in verifying licit crop development in coca growing areas. The CORAH civil construction unit, which is a subset of the main project, provides counternarcotics law enforcement and military agencies with construction and facility improvement capabilities in outlying areas. Demand for both CADA and CORAH construction has been high: CADA statistical information is being used by the international community, such as the OAS Drug Commission, to prioritize its alternative development projects; and CORAH construction services have allowed the police and navy to establish riverine forward operational bases in key coca cultivation areas.

            The Alternative Development Project will develop alternative sources of legal income and employment for coca-growing communities that are subject to coca reduction or that voluntarily agree to eradicate their coca plants. Since 1995, the alternative development program has invested approximately $85 million for improved social infrastructure, potable water systems, rehabilitated road systems, new bridges linking key production areas to the market, support to farmers for licit crops, and local government rebuilding. As a result of the USAID alternative development program, many communities, which were previously dependent on the coca economy, have made a sustainable transition to licit agricultural production. In 1999, the farm-gate value of licit crops surpassed the value of coca in three coca-cultivating areas (Central Huallaga, Pichis-Pachitea, and Aguaytia). While the value of licit crops was 10 percent higher than coca at the beginning of 2000, this trend is threatened by the near quadrupling of coca leaf prices as alternative development funds lag behind demand, and aerial interdiction efforts weaken due to a lack of tracking assets. USAID is negotiating a new agreement with the GOP to implement a revised five-year alternative development strategy that will go through 2006. As part of this strategy, FY 2003 funds will concentrate on expanding alternative development programs in the Huallaga and Apurimac-Ene river valleys. USAID will also expand its efforts to develop licit market opportunities by encouraging private sector companies to sign sales agreements, fund advances for crop harvesting and processing, and create new agribusinesses with former coca farmers for licit crop production.

            The FY 2003 programs seek a licit crop increase of 10 percent in program areas, a significant increase in the percentage of families in coca-growing areas receiving basic services and a measurable increase in family income. By achieving these goals, the current levels of coca reduction can be locked in, negative spillover cultivation effects from the successful Colombian aerial spray eradication program can be minimized, and the Government of Peru can enforce coca reduction in key coca growing areas with the assurance of minimal social unrest.

            In coordination with this effort, INL, the U.S. Department of Agriculture, and the drug office of the Organization of American States (OAS/CICAD) sponsor a joint Alternative Crop Research and Extension Project. This project will continue to perform field research into coffee and cacao diseases, with a focus on finding ways to increase yields in alternative development areas and develop international markets. The U.S. private sector has responded favorably to these efforts, and has provided supplementary personnel and funds for expert marketing and scientific assistance. The FY 2003 funding request will support the dissemination of the practical research results to alternative development farmers throughout the region.

            Narcotics Law Enforcement Project

            efforts are structured around the Anti-Drug Directorate (DIRANDRO) of the Peruvian National Police, which conducts airborne operations against major trafficking facilities in outlying areas, develops intelligence and cases against major trafficking organizations, and takes the lead in drug-related precursor chemicals and counternarcotics riverine operations. DIRANDRO has operating units in several key narcotics trafficking areas, training bases at Mazamari and Santa Lucia, a joint riverine training school in Iquitos, and investigators in major urban areas. The narcotics field support subproject provides essentially all costs, except salaries, for training, equipping and operating DIRANDRO units and personnel, including units which are deployed on the rivers, units investigating trafficking, financial crimes, and chemicals trafficking and a major violators unit. DIRANDRO has formed operational task forces with other Peruvian agencies, such as Customs, to address increasing road and maritime port drug trafficking within Peru. In FY 2003, major law enforcement operations are planned for the coca-growing valleys, opium poppy cultivation highlands, as well as the transit zones, to sever the links between traffickers and drug-producing areas. Some of these new interdiction initiatives require cooperation between DIRANDRO, the Peruvian Air Force (FAP) and the Peruvian Coast Guard, in which DIRANDRO would be called upon to take the law enforcement lead when participating in multi-agency air and riverine operations.

            The Counternarcotics Aviation Support Project covers operating and maintenance costs for the National Police Aviation Division (DIRAVPOL), which provides general aviation support for the entire PNP. It provides pilots, aircrews, and support personnel for 14 U.S.-owned UH-1H helicopters, 5 U.S.-owned K-Max, heavy-lift helicopters and 14 Peruvian owned Mi-17 helicopters, which support coca eradication and law enforcement actions in the field. FY 2003 funds will support the counternarcotics operations of the U.S. owned helicopters, providing fuel, maintenance, hangars and warehousing, aircraft rental when needed, and operational support for DIRAVPOL personnel. A high priority for FY 2003 under this project to modify 14 Bell UH-1H helicopters to Huey II configuration. The Huey II will provide a heavier lift capability for larger ground operations, make river-borne helicopter float operations feasible, improve search and rescue capabilities and allow police to reach inaccessible opium poppy cultivation areas for survey and eradication purposes. Funds will also be used to operate the USG-owned C-27 and C-208 cargo aircraft that support forward operating locations from which the Peruvian Air Force and DIRANDRO conduct ground and aerial intercept operations throughout the country. The long-term objective is to leave behind a GOP-financed organization that can plan and execute strategically important and intelligence-based counternarcotics operations on a national basis.

            The Armed Forces Counternarcotics Support Project will provide FY 2003 funds to support Peruvian Navy joint riverine operations with DIRANDRO in and around northern and eastern Peru (the Iquitos and Pucallpa areas). It will also provide some funding to begin addressing a growing maritime trafficking threat along the Peruvian coast. If there were a decision to restart the air-bridge denial program in Peru, FY 2003 funds would support an expanded FAP air-bridge effort with enhanced safeguards against loss of innocent life. Elements would include outfitting Peruvian-owned fixed-wing aircraft with specialized sensor packages, renovating FAP Tucano and A-37 aircraft to intercept trafficking aircraft, and supporting the establishment of forward operating locations for FAP and DIRANDRO in Iquitos, Pucallpa, Tarapoto and Puerto Maldonado. Support costs include training for pilots and mechanics, facility improvements, spare parts for aircraft and boats, and a search and rescue capability. A primary performance indicator would be driving coca leaf prices down from an average of $3.30 per kilo in 2000, down to $1.00 per kilo in 2003.

            The Administration of Justice/ Prosecutors Project supports a unit of GOP prosecutors that has been granted special national jurisdiction to accompany police and military narcotics law enforcement operations to interrogate suspects and witnesses, take charge of evidence, supervise destruction of illegal facilities such as laboratories or airstrips, and prepare cases to be carried to trial. This project will continue support for the national narcotics prosecutors, provide training to personnel of the judicial branch that handle these cases, and provide selected jurisdictions with adequate resources to handle heavy narcotics caseloads.

            The Counternarcotics Policy and Institutional Development Project provides support to the cabinet level agency (CONTRADROGAS) charged with coordinating and directing the overall counternarcotics efforts of the Government of Peru. In FY 2003, this project will support the further development of national drug control policies, make contact with multilateral and bilateral donors, and enhance communication and coordination between the various GOP counternarcotics agencies.

            Drug Awareness and Demand Reduction Project

            activities will focus on providing the Peruvian public with information about the harmful personal and societal effects of cocaine production and abuse, conducting surveys on drug abuse to identify groups requiring assistance, and supporting educational fora for prevention and treatment professionals. This project will continue to provide assistance to drug awareness institutions, and the Ministry of Education, to support drug awareness, abuse prevention and treatment programs.

            The Program Development and Support account funds salaries and expenses of U.S. and foreign national direct hire and contract personnel, International Cooperative Administrative Support Services (ICASS) costs and general administrative and operating expenses for program planning, design, implementation, monitoring and evaluation.

            Effectiveness Measurements

              • A reduction in the amount of coca and opium poppy cultivated;
              • The immobilization of cocaine production and transportation organizations;
              • The implementation of reforms in the Peruvian justice system;
              • The development of viable alternatives to the illegal coca economy, including implementation of comprehensive macroeconomic policy reforms and projects in and outside of coca-growing areas; and
              • An increase in the awareness of the local population of the dangers of drug abuse and drug trafficking to Peru’s economy and society.

              Peru

               

              FY 2001

              FY 2002

              FY 2003

              Narcotics Law Enforcement

                   

              Law Enforcement Support

              2,800

              12,200

              10,700

              Aviation Support

              7,910

              36,430

              29,000

              Riverine Support

              1,500

              2,800

              2,500

              Subtotal

              12,210

              51,430

              42,200

              Coca and Opium Poppy Eradication

              4,700

              5,000

              5,000

              Alternative Development1

              27,000

              67,500

              69,000

              Armed Forces Counternarcotics Support

              100

              13,900

              13,900

              Air Force, Navy and Coast Guard

                   

              Administration of Justice/Prosecutors

              250

              600

              700

              Policy and Institutional Development

              50

              200

              200

              Drug Awareness/Demand Reduction

              1,000

              1,000

              1,000

              Program Development and Support

                   

              U.S. Personnel

              750

              790

              835

              Non-U.S. Personnel

              773

              815

              860

              ICASS Costs

              622

              710

              725

              Program Support

              545

              555

              580

              Subtotal

              2,690

              2,870

              3,000

               

              ______

              ______

              ______

              Total

              48,0002

              142,500

              135,000


              1

              Venezuela

              Budget Summary ($000)

              FY 2001 Actual

              FY 2002 Estimated

              FY 2003 Request

              1,2001

              5,000

              8,000

               

              1 This total does not include $3.5 million of FY 2000 Plan Colombia Emergency Supplemental funding.

              Objectives

              • Improve Government of Venezuela (GOV) ability to reduce the quantity of drugs transiting Venezuela;
              • Enhance GOV ability to control the diversion of precursor chemicals;
              • Support institution building in national police organizations and assist the GOV to implement judicial reform; and
              • Promote successful investigation and prosecution of money laundering cases.

              Justification

              Colombian narcotics traffickers exploit neighboring Venezuela’s position on the Caribbean to route illicit drugs going to the U.S. As Plan Colombia is implemented, the growing aggressiveness of narcotraffickers operating in Venezuela demonstrates the importance of expanding programs to counter narcotics trafficking and its ramifications. Most of the large containerized shipments of cocaine seized in Florida in the last ten years originated in Venezuelan seaports. Poorly regulated border crossings permit the transport of illicit drugs by land and river from Colombia to these seaports where they are put into containers. Smaller quantities of drugs reach the U.S. from Venezuela by air couriers and air cargo on frequent commercial flights, while smaller aircraft and "go-fast" boats from Colombia use Venezuelan air space and territorial waters to deliver and receive drugs in the Caribbean. Venezuela also exports chemicals used in the manufacture of narcotics to Andean drug source countries, and has a modern financial sector that is a target for the laundering of drug proceeds.

              Against the upsurge in activity of Colombian narcotrafficking organizations operating in Venezuela, the GOV has attempted to pass expansive new counternarcotics legislation, refine the focus of its small force of criminal investigators and public prosecutors, and work with the USG toward the development of improved intelligence, investigative, interdiction and judicial capabilities. The GOV has an established National Financial Intelligence Unit to counter money laundering, and participates actively in multilateral money laundering control organizations such as the Caribbean Financial Action Task Force and the Egmont Group of Financial Intelligence Units. Venezuela cooperates closely with DEA in a worldwide operation against the trafficking in chemicals used in illegal drug production.

              FY 2003 Programs

              The Narcotics Law Enforcement Project will target the principal weak points in the flow of drugs through Venezuela with special attention given to port and border point-of-entry security, mobile inspections, airport, riverine, and coastal security, and intelligence fusion and analysis. The increased level of drug seizures in Venezuela, and information about narcotrafficking organizations that will come to light through these operations, will increase the effectiveness of future interdiction efforts. A Precursor Chemical Control subproject will assist the GOV in monitoring inbound chemical and in preventing the diversion of essential precursor chemicals to Colombia and other drug source countries. By providing training, equipment, advisory and organizational/procedural assistance, the GOV capabilities to disrupt and dismantle narcotrafficking organizations operating in Venezuela will be greatly enhanced.

              The Administration of Justice Project will provide training to Venezuelan investigators, prosecutors and judges, with heavy emphasis on institutional development. This segment will continue current assistance aimed at converting court systems to an oral adversarial system of justice, with specific training on more efficient means to successfully prosecute drug and organized crime cases.

              The Money Laundering Project will improve the monitoring procedures of Venezuelan financial institutions and increase the reporting of suspicious financial transactions, with the goal of developing evidence for the prosecution and sentencing of organized crime figures guilty of financial crimes. As part of the overall strategy to reduce all aspects of narcotrafficking organizations’ operations in Venezuela, the project will work with the GOV National Financial Intelligence Unit (UNIF) to improve GOV ability to detect and investigate money-laundering occurring in the country’s financial institutions, and will engage private sector financial institutions and businesses that handle large sums of cash. Project funding will provide technical assistance, technology for improved electronic sharing between enforcement and financial entities, and training.

              The Drug Awareness and Demand Reduction Project will raise public awareness of the dangers of drug consumption to the individual, family and society; the threat of organized crime to the safety, security and prosperity of Venezuela; and the necessary and desirable role of a range of law enforcement activities to counter organized crime. The goal of this project is to reduce drug consumption and enhance public support for law enforcement efforts against narcotrafficking organizations. Support for this public outreach will include funding for public awareness activities, advisory assistance, equipment for non-government organizations and youth groups and, specifically, assistance to National Commission Against the Illicit Use of Drugs (CONACUID), the GOV entity responsible for promoting better coordination among government law enforcement organizations combating drugs, drafting and promoting counternarcotics legislation, and coordinating the national demand reduction efforts.

              Program Development and Support

              Effectiveness Measurements

                Venezuela

                INL Budget

                ($000)

                 

                FY 2001

                FY 2002

                FY 2003

                Narcotics Law Enforcement

                     

                Law Enforcement Support

                525

                2,475

                5,300

                Chemical Control

                25

                325

                300

                Subtotal

                550

                2,800

                5,600

                Money Laundering

                100

                400

                300

                Drug Awareness/Demand Reduction

                50

                400

                440

                Administration of Justice

                50

                760

                1,000

                Program Development and Support

                     

                U.S. Personnel

                174

                214

                224

                Non-U.S. Personnel

                40

                40

                40

                ICASS Costs

                120

                196

                206

                Program Support

                116

                190

                190

                Subtotal

                450

                640

                660

                 

                _____

                _____

                _____

                Total

                1,2001

                5,000

                8,000

                1 This total does not include $3.5 million of FY 2000 Plan Colombia Emergency Supplemental funding.

              • Enhanced understanding of the structure of narcotics trafficking organizations and an increase in number of successful prosecutions of key narcotics traffickers;
              • Reduced level of corruption within the legal system;
              • Increased number of successful money laundering investigations and successful prosecutions; and
              • Decreased drug consumption and increased popular support and political will for law enforcement action against narcotics trafficking organizations.
              • funding covers the cost of salaries and benefits of U.S. and foreign national direct hire and contract personnel, International Cooperative Agreement Support Services (ICASS) costs and other administrative and operating expenses for program planning, design, implementation, monitoring and evaluation.
                This is an INL funded and USAID administered program. This total does not include ESF funds transferred to INL for alternative development projects.
                2This total does not include $32 million of FY 2000 Plan Colombia Emergency Supplemental funding.

                INL Budget

                ($000)



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