The following members of the Board were present:

Arab Fund for Economic and Social Development: Ms. Mervat Badawi, Director Technical Department (acting representative).
International Monetary Fund: Mr. Bert E. Keuppens, Senior Advisor.
United Nations: Mr. Jean-Pierre Halbwachs, Assistant Secretary-General, Controller.
World Bank: Mr. Fayezul Choudhury, Vice-President and Controller.

Also in attendance were the following:

International Monetary Fund:

Mr. Chris Hemus, Deputy Chief, Finance Department
Ms. Mary Hoare, Officer

United Nations:

Mr. Jayantilal Karia, Director, Accounts Division,
Ms. Arpana Mehrotra, Adviser/Coordinator on IAMB matters
Mr. Moses Bamuwamye, Finance Officer

World Bank:

Mr. Charles McDonough, Director, Accounting Department,
Mr. W. Ofosu Amaah, Vice President and Corporate Secretary

1. The meeting was opened at 11.00 am by the Secretary General, of the United Nations.

In his opening remarks, the Secretary-General stressed that the IAMB had an important responsibility as an independent oversight body. He added that its independence could not be stressed enough and that it was fundamental to honoring the trust that the international community had placed in it. He noted that the Security Council had referred to it as the "eyes and ears of the international community", and that in view of privileges and immunities conferred on the funds of the DFI by the Security Council, this responsibility was even heavier.

2. The member from the United Nations, Mr. Jean-Pierre Halbwachs was chosen as the Chair of the Board for the first year.

Rules of Procedure

3. The members discussed the rules of procedure to govern the Board. The members agreed that it was important that the rules be adopted as soon as possible and that they be kept simple. It was agreed that the member from the IMF would circulate a working document to the members of the Board.
   
   
4. Two issues were considered critical in addressing the rules of procedure: confidentiality and transparency. Since the Board would make public the documents of the IAMB, there was a need to set guidelines in addition to the provisions of the rules of procedure, to ensure that appropriate information concerning the Board's work was made publicly available while ensuring the protection of sensitive and confidential information.

Observers

5. The appointment of observers was discussed. It was agreed that, consistent with its terms of reference, the Board should determine the number and qualifications of the observers. It was also agreed that among the observers would be one selected from nominations by the Coalition Provisional Authority (CPA), and two selected from nominations by the Iraqi Governing Council, preferably including, in respect to the latter, someone from the Iraq Supreme Audit Authority.
   
   
6. It was agreed that the Chairman, after consultation with other members, would request the CPA to submit a list of three names, and the Iraqi Governing Council to submit a list of five names for consideration by the Board. The IMF representative agreed to look into the status of the Iraqi Supreme Audit Authority and report to the board accordingly.

Secretariat

7. It was agreed that prevailing circumstances did not allow for the Secretariat to be established in Baghdad at this point in time.
   
   
8. It was decided that the Secretariat would be small, drawn as appropriate from member organizations, with one local professional staff in Baghdad. It was also decided that the experience and qualification of the staff would be determined by the Board. As for the local staff, it was agreed that the candidate would be an Iraqi national seconded from the Iraq Supreme Audit Authority. The representative of the IMF is to look into this matter further. The Chair agreed to circulate a draft on the qualifications and duties of the Secretariat staff.
   
   
9. It was agreed, as specified in the Terms of Reference that the costs associated with the running of the secretariat would be shared equally among the member institutions. This would continue to reinforce the spirit of independence with which the Board is expected to operate. It was also decided that incidental costs that are not material would be absorbed by the member institution providing the services.

External Auditors

10. The "Draft Statement of Work" for the external auditors was received from the CPA. It was agreed that the Board will undertake an expeditious review of the scope of work, in order that it may respond to the CPA as soon as possible.
    
    
11. Members agreed to share with each their comments and suggestions on the draft before the next meeting.

Briefings to the Board

12. The Board agreed on the necessity of requesting briefings from the CPA to improve their understanding in a few areas of special relevance to an evaluation of the Statement of Work. The initial areas suggested, with others to be identified, included :

DFI in general
Link of Programme Review Board (PRB) disbursements to actual programs delivered
Procurement process of CPA
How CPA undertakes oil and gas sales
Role of CPA's internal audit.

13. It was agreed that the Chair, in consultation with the Board, would contact the CPA in this regard.

IAMB Documentation

14. It was noted that transparency was critical to the smooth operation of the Board. Creation of an IAMB website therefore, would be explored. The IMF representative agreed to examine the feasibility of such a website and to report to the Board.

Communication

15. The Board agreed that the IAMB should speak with one voice, and that all communications from the Board will be made by the Chair following consultation with the members. This however, would not prevent the other Board members from providing routine information on the IAMB and its work.

Other Matters

16. The Board decided that its next meeting would be held on Monday 22 December 2003 at the World Bank in Washington DC.
    
    
17. The Board agreed to issue a press release on its meeting.
    
    
18. The Board also agreed that a draft agenda would be circulated among the members for their review before the next meeting.
    
    
19. The meeting was adjourned at 4.30 P.M.

* * * * * *