Pub. L. 112-74, div. I, tit. VII (as amended)

7031.(a)Limitation on Direct Government-to-Government Assistance.—(1)Funds appropriated by this Act may be made available for direct Government-to-Government assistance only if—(A)each implementing agency or ministry to receive assistance has been assessed and is considered to have the systems required to manage such assistance and any identified vulnerabilities or weaknesses of such agency or ministry have been addressed; and(i)the recipient agency or ministry employs and utilizes staff with the necessary technical, financial, and management capabilities;(ii)the recipient agency or ministry has adopted competitive procurement policies and systems;(iii)effective monitoring and evaluation systems are in place to ensure that such assistance is used for its intended purposes; and(iv)no level of acceptable fraud is assumed.(B)the Government of the United States and the government of the recipient country have agreed, in writing—(i)on clear and achievable objectives for the use of such assistance; and(ii)that such assistance should be made on a cost-reimbursable basis.(2)In addition to the requirements in subsection (a), no funds may be made available for such assistance without prior consultation with, and notification to, the Committees on Appropriations: Provided, That such notification shall contain an explanation of how the proposed activity meets the requirements of paragraph (1): Provided further, That the requirements of this paragraph shall only apply to direct Government-to-Government assistance in excess of $10,000,000 and all funds available for cash transfer, budget support, and cash payments to individuals.(3)The USAID Administrator or the Secretary of State, as appropriate, shall suspend any such assistance if the Administrator or the Secretary has credible information of material misuse of such assistance, unless the Administrator or the Secretary determines and reports to the Committees on Appropriations that it is in the national interest of the United States to continue such assistance.(4)Not later than 90 days after the enactment of this Act and 6 months thereafter, the USAID Administrator shall submit to the Committees on Appropriations a report that—(A)details all assistance described in subsection (a) provided during the previous 6-month period by country, funding amount, source of funds, and type of such assistance; and(B)the type of procurement instrument or mechanism utilized and whether the assistance was provided on a cost-reimbursable basis.(5)The USAID Administrator shall submit to the Committees on Appropriations, concurrent with the fiscal year 2013 congressional budget justification materials, amounts planned for assistance described in subsection (a) by country, proposed funding amount, source of funds, and type of assistance.(b)National Budget and Contract Transparency.—(1)Limitation on funding.—None of the funds appropriated under titles III and IV of this Act may be made available to the central government of any country that does not meet minimum standards of fiscal transparency: Provided, That the Secretary of State shall develop minimum standards of fiscal transparency to be updated and strengthened, as appropriate, to reflect best practices: Provided further, That the Secretary shall make an annual determination of progress or no progress for countries that do not meet minimum standards of fiscal transparency and make those determinations publicly available in an annual Fiscal Transparency Report.(2)Minimum standards of fiscal transparency.—For purposes of paragraph (1), minimum standards of fiscal transparency shall include standards for the public disclosure of budget documentation, including receipts and expenditures by ministry, and government contracts and licenses for natural resource extraction, to include bidding and concession allocation practices.(3)Waiver.—The Secretary of State may waive the limitation on funding in paragraph (1) on a country-by-country basis if the Secretary reports to the Committees on Appropriations that the waiver is important to the national interest of the United States: Provided, That such waiver shall identify any steps taken by the government of the country to publicly disclose its national budget and contracts which are additional to those which were undertaken in previous fiscal years, include specific recommendations of short- and long-term steps such government can take to improve budget transparency, and identify benchmarks for measuring progress.(4)Assistance.—Of the funds appropriated under title III of this Act, not less than $5,000,000 should be made available for programs and activities to assist the central governments of countries named in the list required by paragraph (1) to improve budget transparency or to support civil society organizations in such countries that promote budget transparency: Provided, That such sums shall be in addition to funds otherwise made available for such purposes.(c)8 U.S.C. 1182 noteAnti-kleptocracy.—(1)Officials of foreign governments and their immediate family members who the Secretary of State has credible information have been involved in significant corruption, including corruption related to the extraction of natural resources, shall be ineligible for entry into the United States.(2)Individuals shall not be ineligible if entry into the United States would further important United States law enforcement objectives or is necessary to permit the United States to fulfill its obligations under the United Nations Headquarters Agreement: Provided, That nothing in this provision shall be construed to derogate from United States Government obligations under applicable international agreements.(3)The Secretary may waive the application of paragraph (1) if the Secretary determines that the waiver would serve a compelling national interest or that the circumstances which caused the individual to be ineligible have changed sufficiently.(4)Not later than 90 days after enactment of this Act and 180 days thereafter, the Secretary of State shall submit a report, in classified form if necessary, to the Committees on Appropriations describing the information regarding corruption concerning each of the individuals found ineligible pursuant to paragraph (1), a list of any waivers provided under subsection (3), and the justification for each waiver.