[Congressional Record Volume 154, Number 92 (Thursday, June 5, 2008)]
[Senate]
[Pages S5199-S5200]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                MILLENNIUM CHALLENGE CORPORATION FUNDING

  Mr. GREGG. Mr. President, I had the fortunate opportunity to travel 
to Africa and South America over the Easter recess, and I want to take 
a moment to share some of my observations with my colleagues.
  Mali receives significant U.S. foreign assistance totaling $45 
million in fiscal year 2007, $55 million in fiscal year 2008--and $461 
million in Millennium Challenge Corporation, MCC, funding.
  While Mali appears headed in the right direction, I worry that the 
MCC is going down the wrong path, specifically by funding a $90 million 
renovation project for Bamako airport's runway and terminal. I 
understand that this project may have been formulated through a 
consultative process, but it seems to me that it should be funded 
through the African Development Bank or by private investment. I expect 
the MCC to justify to the State, Foreign Operations Subcommittee the 
necessity for U.S. taxpayers to fund the airport project, and to 
consult on the reprogramming of funds required by the derailed $90 
million industrial park project.
  The funding disparity and contrast between our traditional 
development agency--the U.S. Agency for International Development, 
USAID--and the MCC was glaring in Mali. Where USAID--could benefit from 
a slight increase in overall funding, the MCC was struggling to 
determine how best to reprogram $90 million. I am very concerned that 
MCC may not live up to its billing as a more effective aid delivery 
program, and its deep pockets may create unintended opportunities for 
corruption.
  I had the opportunity to visit the U.S. Embassy and learned of the 
loss of air conditioning for a lengthy period of time which was a 
burden to American and local staff. This is not the first time I've 
heard of problems at our newly built embassies, and I encourage the 
State Department to make sure that no patterns exist at these 
facilities because of subpar contractors or equipment.
  Like Mali, Nigeria receives significant U.S. assistance primarily 
through a new initiative, the President's Emergency Plan for AIDS 
Relief, PEPFAR. Assistance in fiscal year 2007 totaled $350 million and 
$491 million in fiscal year 2008, of which $282 million and $410 
million are for HIV/AIDS activities, respectively.
  On paper, Nigeria is wealthy country with significant oil reserves, 
and, we were told, an estimated $57 billion in an excess crude account. 
Corruption is unfortunately a cancer that stymies development and 
political progress in that country; Transparency International's 
Corruption Perception Index, 2007, ranks Nigeria 147th out of 179th.
  Nigeria is a PEPFAR focus country, with a 3.9 percent prevalence rate 
among adults. Given Nigeria's significant natural resources, it is 
imperative that the AIDS Coordinator begin a process of transitioning 
from U.S. to Nigeria-funded programs. America can help the Government 
of Nigeria spend its health dollars, but I question the efficacy of 
U.S. funding for HIV/AIDS programs in that country. I will have more to 
say on this issue when the Senate considers the reauthorization of 
PEPFAR, perhaps later this year.
  Namibia is also a PEPFAR focus country, and received $86.9 million in 
fiscal year 2007 and $103 million in fiscal year 2008 for HIV/AIDS 
programs. Unfortunately, other programs for Namibia, specifically 
support for democracy activities, has been in steady decline over the 
past few fiscal years and is being zeroed out. Given that the ruling 
SWAPO party is no longer a monolith, and splinter parties are forming, 
the Administration's reduction in assistance to Namibia may be ill 
timed and ill advised.
  My staff and I are exploring ways to ensure that sufficient funding 
exists for non-HIV/AIDS programs for Namibia, including immediate 
support for domestic election monitoring activities in that country, 
and like Nigeria, I encourage PEPFAR personnel to explore sustainment 
strategies for U.S.-funded HIV/AIDS programs.
  I am also concerned that the United States is not supporting enough 
exchange programs with countries in Africa. I intend to increase these 
programs in upcoming appropriations bills.
  South Africa is also a PEPFAR focus country and received $398 million 
in fiscal year 2007 and $547 million in fiscal year 2008 HIV/AIDS 
funding. South Africa is running a budget surplus--in this case 
totaling $2.4 billion.
  I am very pleased that our U.S. Ambassador understands the need for 
South Africa to assume greater financial responsibility for HIV/AIDS 
programs, and it is unfortunate that certain South Africa government 
officials have not been aggressive in addressing this issue. Any future 
support for HIV/AIDS programs in South Africa should be conditioned on 
the development and implementation of sustainment strategies to ensure 
that the Government of South Africa assume the care for its infected 
populations.
  Crime remains a significant challenge to everyone in South Africa, 
and given the increased personnel requirements associated with PEPFAR, 
it may make sense to allow the use of PEPFAR funds for administrative 
and operational expenses at the U.S. Embassy, including for security 
purposes. New initiatives create increased desk

[[Page S5200]]

and office space needs, and I've asked my staff to take a closer look 
at this issue in anticipation of marking up the fiscal year 2009 State, 
Foreign Operations Appropriations bill.
  I also intend to continue to work with Secretary of State Rice on 
resolving travel issues impacting members of the Africa National 
Congress, which is an unnecessary irritant in U.S.-South African 
relations.
  Finally, although Argentina is not a major recipient of U.S. foreign 
assistance--some $2 million was provided in fiscal year 2008--relations 
between our countries have been historically good. I encourage my 
colleagues to continue to follow counterdrug and counterterrorism 
developments in that country--and region.

                          ____________________