UNCLASSIFIED ISP-I-18-18 Office of Inspections May 2018 Inspection of Embassy Addis Ababa, Ethiopia BUREAU OF AFRICAN AFFAIRS UNCLASSIFIED UNCLASSIFIED May 2018 OFFICE OF INSPECTIONS Bureau of African Affairs Inspection of Embassy Addis Ababa, Ethiopia What OIG Found ISP-I-18-18 What OIG Inspected  At the time of the inspection, new leadership at Embassy OIG inspected Embassy Addis Ababa’s Addis Ababa had started taking steps to address executive direction, program and policy significant challenges in policy implementation and implementation, management controls, and resource management. resource management operations.  The 2017 Annual Chief of Mission Management Control Statement of Assurance did not identify multiple internal What OIG Recommended control deficiencies in the Management and Consular This report includes 30 recommendations. OIG Sections. made 27 recommendations to improve  The embassy denied visas to special immigrant visa Embassy Addis Ababa’s resource applicants on the basis of incorrect criteria that did not management, information management, comply with Department of State policy. foreign assistance, public diplomacy, consular,  Embassy Addis Ababa’s warehouses lacked sufficient and political-economic programs and controls to prevent access by unauthorized personnel. operations; 1 recommendation to the Bureau  The embassy did not address serious safety deficiencies at of African Affairs related to management many of its leased residences. controls; and 2 recommendations to the Bureau of Overseas Buildings Operations  The embassy did not protect personally identifiable related to embassy safety programs. information when destroying visa records.  Embassy Addis Ababa did not document grants files or In its comments on the draft report, the obtain regional bureau approval for certain grants in Department concurred with all 30 accordance with Department of State standards. recommendations. OIG considers the  The Department lacked an adequate plan to ensure the recommendations resolved. The Department’s seismic adequacy of embassy residences despite Addis response to each recommendation, and OIG’s Ababa being at high risk for earthquakes, and Embassy reply, can be found in the Recommendations Addis Ababa did not inform the embassy community section of this report. The Department’s about seismic risks documented in a Bureau of Overseas formal written responses are reprinted in their Buildings Operations report. entirety in Appendix B. UNCLASSIFIED UNCLASSIFIED CONTENTS CONTEXT ............................................................................................................................................................................ 1 EXECUTIVE DIRECTION ................................................................................................................................................. 2 Tone at the Top and Standards of Conduct ..................................................................................................... 2 Equal Employment Opportunity ........................................................................................................................... 2 Execution of Foreign Policy Goals and Objectives ......................................................................................... 3 Adherence to Internal Controls ............................................................................................................................. 3 Security and Emergency Planning ........................................................................................................................ 4 Developing and Mentoring Future Foreign Service Professionals .......................................................... 5 POLICY AND PROGRAM IMPLEMENTATION........................................................................................................ 6 Political-Economic Section ...................................................................................................................................... 6 Federal Assistance and Grants ............................................................................................................................... 7 Public Diplomacy ........................................................................................................................................................ 7 Consular Affairs ........................................................................................................................................................ 10 RESOURCE MANAGEMENT ...................................................................................................................................... 12 General Services ....................................................................................................................................................... 13 Facilities Management ........................................................................................................................................... 19 Human Resources.................................................................................................................................................... 20 Financial Management .......................................................................................................................................... 22 Information Management and Information Security ................................................................................. 23 RECOMMENDATIONS ................................................................................................................................................ 27 PRINCIPAL OFFICIALS ................................................................................................................................................. 35 APPENDIX A: OBJECTIVES, SCOPE, AND METHODOLOGY........................................................................... 36 APPENDIX B: MANAGEMENT RESPONSES ......................................................................................................... 37 APPENDIX C: FY 2016 STAFFING AND FUNDING BY AGENCY ................................................................... 49 ABBREVIATIONS ........................................................................................................................................................... 50 OIG INSPECTION TEAM MEMBERS ....................................................................................................................... 51 UNCLASSIFIED UNCLASSIFIED CONTEXT Ethiopia is the second most populous nation in Africa with 102 million inhabitants, of whom 65 percent are age 25 or under. Ethiopia also has one of the world’s fastest growing economies, averaging 10.5 percent gross domestic product growth over the past decade, largely driven by state-run infrastructure and agricultural development. Approximately 80 percent of the population works in agriculture. Ethiopia remains extremely poor, and improving food security is an important priority. The U.S. foreign assistance program in Ethiopia is one of the largest in the world, totaling $1,013,086,229 in FY 2016, according to the U.S. Agency for International Development’s (USAID) U.S. Overseas Loans and Grants report. It includes funds for food assistance, health and HIV/AIDs, agriculture, development assistance, and military aid. In the 2 years prior to the inspection, the United States contributed $840 million for emergency food aid for 8.5 million people affected by an El Nino-induced drought. Despite these challenges, Ethiopia has made important strides in development. The number of Ethiopians living in extreme poverty declined from 55 percent in 2000 to 34 percent in 2011. Over the past two decades, Ethiopia cut child mortality in half, more than doubled the number of people with access to clean water, and reduced the incidence of malaria and HIV/AIDS. Critical to peace and stability across the Horn of Africa region, Ethiopia plays a key role in challenging the al-Shabaab terrorist organization in Somalia and helping mitigate conflicts in Sudan and South Sudan. It is Africa’s largest peacekeeping contributor. Ethiopia also hosts an estimated 850,000 refugees, primarily from South Sudan and Somalia. Internally, Ethiopia is a one-party state, and the government tightly controls the political, economic, and security environment. A state of emergency, declared in October 2016 to repress unrest in the Oromia and Amhara regions, resulted in more than 25,000 people detained and more than 600 killed. The state of emergency also affected embassy operations with periodic internet outages and travel restrictions. While the government lifted the order in August 2017, it continues to severely restrict the rights of civil society, media, and the political opposition. Embassy Addis Ababa’s principal bilateral areas of focus, as articulated in its January 2017 Integrated Country Strategy (ICS), include protection of American citizens, strengthening democratic institutions and human rights, spurring broad-based economic growth and development, and advancing regional peace and security. At the time of the inspection, Embassy Addis Ababa was authorized 177 U.S. direct-hire personnel, 1,124 locally employed (LE) staff members, and 44 eligible family members. The new embassy compound, constructed in 2012, also hosts the U.S. Mission to the African Union. The embassy’s FY 2016 budget was $21,908,029. Other agencies represented at the embassy are the Departments of Agriculture, Commerce, Defense, and Justice, USAID, and the Centers for Disease Control and Prevention. ISP-I-18-18 1 UNCLASSIFIED UNCLASSIFIED OIG evaluated the embassy’s policy implementation, resource management, and management controls consistent with Section 209 of the Foreign Service Act.1 The companion classified inspection report discusses certain aspects of the embassy’s policy implementation program, as well as the security program and issues affecting the safety of mission personnel and facilities. EXECUTIVE DIRECTION OIG assessed Embassy Addis Ababa leadership on the basis of 37 interviews that included comments on the Ambassador’s and the Deputy Chief of Mission’s (DCM) performance, 158 staff questionnaires, and OIG’s review of documents and activities during the course of the on- site portion of the inspection. Tone at the Top and Standards of Conduct The Ambassador arrived in Addis Ababa in October 2017, just 3 weeks before the on-site portion of the inspection. A career member of the Senior Foreign Service, he previously served as the Executive Director of the Bureau of African Affairs. He spent much of his career in Africa, including tours as management officer in Embassies Harare, Zimbabwe; Windhoek, Namibia; Conakry, Guinea; and Djibouti, Djibouti. The DCM, who arrived in July 2017, also has extensive African experience, including having served as the Deputy Director for Southern African Affairs and fulfilling assignments in Mauritius, Zambia, and Ghana. In the short time they had been at the embassy, the Ambassador and the DCM had established productive working relationships, both with each other and with their staff. American and LE staff consistently told OIG about the Ambassador and the DCM’s inclusive and collaborative styles and approachability, traits that are in keeping with the Department of State’s (Department) leadership principles in 3 Foreign Affairs Manual (FAM) 1214. Shortly after his arrival, the Ambassador held a well-received town hall meeting for the embassy staff, during which he discussed his goals for the U.S. relationship with Ethiopia and the employees’ roles in achieving them. The DCM held a weekly “open house” meeting in an open area of the embassy for any employee who had an issue he or she wanted to address with him. Working with the community liaison officer, the DCM had suggestion boxes placed throughout the embassy and replied to the queries through a weekly embassy newsletter. Equal Employment Opportunity OIG found that the embassy’s Equal Employment Opportunity (EEO) program met Department requirements in 3 FAM 1514.2. OIG interviews indicated that U.S. and LE staff members understood who to contact with issues and what procedures were available to resolve complaints. Counselors told OIG they had good access to the Ambassador and the DCM. The Embassy EEO Counselors Committee chairperson received training at the Department’s Foreign Service Institute, and subsequently briefed American and LE supervisors on how to address issues. The embassy also posted EEO notices and information in the chancery. 1 See Appendix A. ISP-I-18-18 2 UNCLASSIFIED UNCLASSIFIED Execution of Foreign Policy Goals and Objectives The embassy prepared its 2017 Integrated Country Strategy in accordance with 18 FAM 100. The former DCM, while serving as Chargé d’Affaires, ad interim, coordinated the ICS preparation, which included input from all concerned embassy sections. The Department approved the final version in January 2017. The Ambassador and the DCM incorporated the ICS goals into their meetings with embassy staff. At the time of the inspection, the Ambassador had yet to present his credentials of accreditation to the Ethiopian Government. However, he immediately began engaging with the host government by attending two meetings with the prime minister and hosting the cultural minister at his residence. One of his first public addresses resulted in a call from the Minister of Foreign Affairs thanking him for his comments. During his first 3 weeks at post, he traveled to the Grand Ethiopian Renaissance Dam, a development project on the border with Sudan, and visited refugee camps with the U.S. Permanent Representative to the United Nations. The Ambassador indicated in staff meetings that he wanted the Political-Economic Section to develop a more strategic approach to travel and reporting, based on existing ICS goals and objectives. He stated his goal was to include Public Affairs Section events and humanitarian, USAID, and Peace Corps projects in travel and reporting plans. Embassy Needed Executive Coordination of Foreign Assistance Programs OIG found that the coordination of foreign assistance programs in Ethiopia did not meet Department standards in 1 FAM 013.2g(6), which states that a chief of mission should direct and coordinate all foreign assistance programs, including those implemented by other embassies or Washington. OIG could not identify any coordination efforts that regularly involved Washington, D.C.-based stakeholders, even though Department and other Washington, D.C.-based offices implemented more than 90 percent of foreign assistance funding in Ethiopia. In addition, OIG found that the embassy’s coordination of the President’s Emergency Plan for AIDS Relief, or PEPFAR, which received $157 million in FY 2017 foreign assistance funding, was insufficient. Embassy officers told OIG that prior to the arrival of the new Ambassador and DCM, embassy leadership did not focus on the embassy’s interagency working groups on foreign assistance implementation. At the time of the inspection, the Ambassador and the DCM had yet to develop their approach for coordinating the embassy’s foreign assistance. OIG did not make a recommendation, but advised the Ambassador and the DCM to ensure the programs are coordinated in accordance with Department guidance. Adherence to Internal Controls The embassy did not report any significant deficiencies on the 2017 Annual Chief of Mission Management Control Statement of Assurance, dated August 2017.2 However, OIG identified 2 According to Department guidance for the FY 2017 Statement of Assurance process, a significant deficiency is one or more management control issues that are less severe than a material weakness, yet important enough to merit ISP-I-18-18 3 UNCLASSIFIED UNCLASSIFIED serious deficiencies in grants oversight; consular operations; property management; the purchase card program; safety, health, and environmental program management; and human relations operations, as discussed later in this report. The DCM told OIG he became concerned about management controls before he arrived at post. After arriving and learning more about some of the embassy’s ongoing management challenges, he was concerned that the draft 2017 Statement of Assurance listed no significant deficiencies. However, the Bureau of African Affairs told him the deficiencies he raised with them did not reach the level of significant deficiencies required to be reported in the statement. Therefore, he signed the document while Chargé. However, because of his concerns, the DCM has focused on strengthening management control practices since his arrival at post in July 2017, and, upon his arrival in October 2017, the Ambassador supported those efforts. For example, the DCM resumed ICASS meetings after an 18-month lapse. He also assigned a new Inter-Agency Housing Board chair, reinstituted required Safety, Health, and Environmental Management meetings, and stopped home-to-office transportation for unauthorized staff members. The DCM told OIG that while the embassy was making progress on addressing the deficiencies described later in this report, much still needed to be done. The arrival, in summer 2017, of several key Management Section officers also helped the embassy leadership’s efforts. These positions had been vacant before being filled by a senior General Services Officer, a Financial Management Officer, a Facilities Manager, and an experienced Human Resources Officer. The DCM complied with requirements in 9 FAM 403.9-2(D)d. and e. and 9 FAM 403.10-3(D)(1) to regularly review the Consular Section chief’s visa adjudications, meeting 100 percent of the required standard from July to October 2017. Security and Emergency Planning The Ambassador and the DCM conducted their security responsibilities in accordance with 12 FAH-1 H-721. The Regional Security Office drafted new security directives for the Ambassador’s signature, which were in the clearance process during the inspection. In addition, the DCM chaired the embassy’s Emergency Action Committee, which met as needed to discuss emergency preparedness and security-related developments, and the Ambassador and the DCM met with the Regional Security Officer weekly. The embassy was up to date on all required drills and exercises except one, which is discussed in the companion classified report, and the Ambassador and the DCM participated in the drills. Overall, OIG confirmed that Embassy Addis Ababa conducted its security program in accordance with Department standards and guidance. However, OIG identified deficiencies related to physical security, the local guard force, and residential security, which are discussed in the companion classified report. attention by the Department. The guidance recommends, based on management’s judgment, that the deficiency or deficiencies be included if they represent significant weaknesses in the design, implementation, or operation of management control that could adversely affect the Department’s ability to meet its program and management control objectives. ISP-I-18-18 4 UNCLASSIFIED UNCLASSIFIED Memorandum of Agreement between Chief of Mission and Department of Defense Was Outdated The embassy had not submitted to the Department an updated security memorandum of agreement between the Chief of Mission and the geographic Department of Defense Combatant Commander. According to 2 Foreign Affairs Handbook (FAH)-2 H-116.4, chiefs of mission are required to provide an updated security memorandum of agreement annually to the Department’s Office of Management Policy, Rightsizing, and Innovation or upon the arrival of a new chief of mission. The Ambassador had not had time to update the agreement during the short time since his arrival. The lack of an updated memorandum of agreement could lead to confusion over security responsibility for some Department of Defense personnel. Embassy Addis Ababa should update the memorandum of agreement between the Commander, U.S. Africa Command, and Chief of Mission, Embassy Addis Ababa, for security and force protection of Department of Defense elements and personnel in Ethiopia, in accordance with Department guidelines. (Action: Embassy Addis Ababa) Better Earthquake Preparedness Needed Embassy planning for earthquake preparedness needed improvement. The Bureau of Overseas Buildings Operations (OBO) rates Addis Ababa in the highest category for earthquake risk. Those issues, with recommendations to address the deficiencies, are discussed in more detail in the Resource Management section of this report. OIG also advised the embassy on actions it could take immediately, such as educating employees on how to make their residences as safe as possible. Developing and Mentoring Future Foreign Service Professionals At the time of the inspection, the DCM, in coordination with the DCM for the U.S. Mission to the African Union, had restarted the inactive mentoring program for First- and Second-Tour employees, in accordance with 3 FAM 2242.4. He hosted an off-site session to discuss how best to establish a formal organization and opened the group to First- and Second-Tour personnel from all agencies at post. The new program provided opportunities for group members to attend country team meetings, briefings from selected embassy visitors, and attendance at mission functions. Appropriate Reviewing Officer Was Not Assigned for Untenured Generalist Officers’ Evaluations The embassy had not assigned an appropriate reviewing officer for untenured Foreign Service generalist officers’ evaluations.3 According to 3 FAM 2243.2-1b, the DCM is required to exercise personal oversight in establishing responsibilities of the entry-level officer candidates and serve 3 Untenured generalist officers are Foreign Service officer career candidates in management, consular, public diplomacy, economic, and political areas of expertise. ISP-I-18-18 5 UNCLASSIFIED UNCLASSIFIED as their reviewing officer, unless another appropriate counselor can be designated. However, Embassy Addis Ababa did not have other officers at the appropriate grade level. Supervisors of the untenured generalist officers were unaware of this requirement. Lack of an appropriate reviewing officer for untenured officers may place them at a disadvantage for tenure and promotion. Embassy Addis Ababa should assign an appropriate reviewing officer for all untenured Foreign Service generalist officer evaluations. (Action: Addis Ababa) POLICY AND PROGRAM IMPLEMENTATION Political-Economic Section OIG reviewed the Political-Economic Section’s policy implementation, reporting and advocacy, commercial promotion, Leahy vetting,4 end-use monitoring,5 and grants management. OIG also reviewed the section’s administration of Department foreign assistance, which funded the embassy’s programs to assist refugees, combat trafficking in persons, advance regional environmental priorities, expand the rule of law, and support civil society. Department assistance also funded peacekeeping programs for Somalia and military education and training for Ethiopian forces, administered through the embassy’s Office of Security Cooperation. OIG found that the section’s operations conformed to Department requirements, with the exceptions discussed below. Political-Economic Section Worked to Advance ICS Goals Despite Staffing Gaps The Political-Economic Section worked to advance ICS goals through its advocacy and reporting efforts, despite operating for much of 2017 with several staffing gaps. According to the embassy, two eligible family member reporting positions were vacant due to the Department’s hiring freeze.6 In addition, the section chief and office management specialist were temporarily transferred to the Front Office to fill staffing gaps. To fulfill its responsibilities with reduced staffing, the section worked with the American Chamber of Commerce and the Foreign 4 The Leahy Amendment to the Foreign Assistance Act of 1961 prohibits the Department of State from furnishing assistance to foreign security forces if the Department receives credible information that such forces have committed gross violations of human rights. See 22 USC 2378d. 5 The Department requires that certain property purchased with foreign assistance funds be monitored to ensure it is used for its intended purposes. In general, equipment valued at more than $2,500 or items designated as defense articles or dual-use items are subject to this requirement. End-use monitoring fulfills the requirements of Section 484(b) of the Foreign Assistance Act of 1961 and Section 40A of the Arms Export Control Act. See 22 U.S.C. § 2991(c) and 22 U.S.C. § 2785 6 A government-wide hiring freeze was first announced by the Office of Management in Budget on January 23, 2017. While most positions were frozen and could not be filled if vacant, the Secretary approved specific exemptions to the hiring freeze to ensure the Department was able to meet critical needs. During the inspection, the Secretary announced that beginning in January 2018, he would give greater authority to the bureaus to strategically manage the exemption process and fill vacant positions through lateral reassignments and internal promotions. In addition, he stated he would authorize each of the regional bureaus to fill 1,500 priority eligible family member positions abroad in FY 2018, to meet the Department’s security, health, and safety requirements. ISP-I-18-18 6 UNCLASSIFIED UNCLASSIFIED Commercial Service to support and advocate on behalf of U.S. businesses. Department offices and other agency representatives consistently described embassy reporting as valuable, citing in particular its reports on internal stability, Somalia, Sudan, and border issues. Federal Assistance and Grants Foreign Assistance Grant Files Were Not Documented Properly OIG found that the Political-Economic Section followed good management practices in conducting multiple outreach efforts that expanded the number of new grant applicants and completing pre-award site visits for potential grantees that were rated highly by a grant review panel. However, OIG found that the section did not follow all grants administration requirements outlined in the Department’s May 20, 2017, Federal Assistance Directive, for its FY 2017 grants. OIG reviewed all 19 awards in FY 2017 for PEPFAR, the Ambassador’s Special Self Help program, and the Julia Taft Refugee Fund, totaling $383,670. None of the awards included the award budget (Form SF-424A), and the awards that needed regional bureau approval had not received it, as required by Federal Assistance Directive Chapters 2 and 3, respectively. Section staff told OIG they were unaware of the requirements. OIG also identified other deficiencies, including missing Grants Officer Representative designation letters, no monitoring plans, and awards not entered into the Grants Data Management System. An OIG spot check of FY 2018 award files showed that they included the required documents, but did not have regional bureau approval for those awards needing it. By not obtaining required regional bureau approval, the bureau cannot ensure that the awards align with regional goals and priorities. During the inspection, OIG advised section employees on current federal assistance policy requirements. Embassy Addis Ababa should document Federal assistance awards in accordance with Department standards. (Action: Embassy Addis Ababa) Public Diplomacy The Public Affairs Section used a diverse range of public diplomacy tools and programs to advance ICS goals. OIG found the Public Affairs Officer responsibly managed resources and promoted collaboration with other sections and agencies. OIG reviewed the section’s strategic planning, reporting, knowledge management, leadership, cultural programs, and alumni outreach and found they complied with Department standards. However, OIG identified deficiencies in the section’s media engagement, grants administration, and American Spaces management, as discussed below. ISP-I-18-18 7 UNCLASSIFIED