NIGERIA: DEALING WITH UN MISSION DEBT

C O N F I D E N T I A L ABUJA 001306

SIPDIS


E.O. 12958: DECL: 06/08/2007
TAGS: AMGT OFDP KREC NI
SUBJECT: NIGERIA: DEALING WITH UN MISSION DEBT

REF: (A) SECSTATE 84936 (B) USUN 1113


CLASSIFIED BY AMBASSADOR HOWARD F. JETER FOR REASONS 1.5 (B)
AND (D).



1. (C) During the course of a June 1 meeting with MFA
Permanent Secretary (Ambassador) T.D. Hart, Ambassador Jeter
presented a letter describing the need for the GON to address
immediately the potentially embarrassing issue of the
Nigerian UN Mission's outstanding debt to ConEdison. The
Ambassador also told Hart that he had spoken with Nigeria
Permrep Arthur Mbanefo recently, who was very concerned about
the severe embarrassment this issue might cause Nigeria.
Jeter said that we concurred and therefore were aproaching
the GON quietly to urge that this matter be dealt with
promptly.



2. (C) Ambassador Hart said he appreciated the concern with
which the USG has handled this issue. He described Permrep
Mbanefo's past efforts regarding this issue, but added: "The
Ministry of Finance has not been entirely sympathetic to our
needs." Hart did not go into details, but emphasized that
funds had been made available by the Ministry of Finance to
settle that particular bill, and said he expected payment to
be made in the coming week.



3. (C) Jeter mentioned a separate problem gleaned from his
conversation with Mbanefo concerning Nigeria's outstanding
Mission phone bill in excess of USD 400,000. Hart said that
this debt had been incurred during the Abacha Administration
and that funds were not available in the Ministry's regular
allocation to pay for it. Hart emphasized, however, that the
GON would pay its debts. He said that he was working with
the Presidency and the Ministry of Finance to obtain adequate
funds to honor debts, and to meet the pressing needs of
Nigerian Missions around the world. The Permsec was
optimistic that funds would be made available soon to address
any other outstanding debts of the Nigerian Mission to the
UN.



2. (C) Comment: There are a substantial number of
Abacha-era debts that are still outstanding. The Obasanjo
Administration does appear to be trying to pay most of them.
The problem is that almost all of these debts were incurred
without authorization and in many cases without funds having
been made available. The Permsec's assertion that the
ConEdison bill would be paid in the following week may be
accurate; however, Nigeria's very slow track-record on
releasing money from the Ministry of Finance, even after an
expenditure has been approved, would indicate a longer delay.


Jeter