SOUTHERN SNAPSHOTS - WEEK OF SEPTEMBER 1, 2003

C O N F I D E N T I A L SECTION 01 OF 02 LAGOS 001862

SIPDIS


LONDON FOR GURNEY, PARIS FOR NEARY


E.O. 12958: DECL: 09/01/2008
TAGS: PREL PGOV KDEM ELAB PINR NI
SUBJECT: SOUTHERN SNAPSHOTS - WEEK OF SEPTEMBER 1, 2003


REF: LAGOS 1823 AND PREVIOUS


Classified By: CONSUL GENERAL ROBYN HINSON-JONES FOR REASONS 1.5 (B) AN


D (D).


Anambra: Impeachment Panel ignores Court injunction



1. (U) The Impeachment Panel set up by the Anambra State
government to investigate Deputy Governor Okey Udeh's role in
the July 10 failed attempt to forcefully remove Governor
Chris Ngige from office has ignored an order of the federal
High Court in Abuja restraining it from further consideration
of the Udeh case. Presiding Judge of the High Court Wilson
Egbo-Egbo ruled on August 26 that all proceedings and actions
in connection with the impeachment proceeding must be stayed
indefinitely. On August 28, two days after the High Court
order, the Panel met then announced on August 29 that it
would ignore the Abuja Court's ruling because that court
lacked jurisdiction to rule on matters concerning impeachment
proceedings. Udeh has filed a contempt of court charge
against the Panel and his lawyer has, in addition, petitioned
the Nigerian Bar Association to intervene based on what he
terms the Panel's "abuse of profession and due administration
of justice." No date has yet been set for a hearing on the
charges of contempt.



2. (C) Comment. The judicial wrangling that has surrounded
this crisis from its beginning indicates that a resolution to
the crisis in Anambra State that will be acceptable to all
parties will be hard to come by. The Obasanjo
administration, after initial neutral statements, now has
gone silent and appears willing to remain neutral while the
crisis lasts. Defying a court injunction as the Impeachment
Panel has done seems a sure indication that Anambra State
wants to test the strength of Nigeria's fledgling democracy.


Abia: "Action Governor" Orji Kalu addresses Nigerian group in
Houston



3. (U) Abia State Governor Orji Kalu, in a speech to the Abia
State National Association meeting in Houston, told the
audience how he thought some of the problems in the State
could be addressed. According to Kalu, the State is in a
financial bind because the Ministry of Finance and its Debt
Management Office have taken almost USD 90 million from
Abia's 2003 federal allocation to service debt of over USD
600 million that the GON says is Abia's part of the national
debt. The State has protested the accuracy of both amounts,
and Kalu blames the huge amounts going to debt service for
Abia's inability to provide its citizens with their share of
the "dividends of democracy" such as regular, on time payment
of worker salaries, and provision of usual government
services such as infrastructure repairs. The Governor touted
Abia's "numerous economic potentials and rich local
entrepreneurships" as great opportunities, and suggested this
area should be explored by foreign investors, especially
American private businesses. He went on to say that the US
and other advanced countries should assist Nigeria with
investment and technical support to stabilize and grow its
economy. He concluded, saying, "Whatever happens to Nigeria
will have adverse effects on democracy in Africa, and,
indeed, in the whole world. The international community,
particularly America, has a moral duty to work to sustain
democracy in Nigeria."



4. (C) Comment. Orji Kalu is one of the Peoples Democratic
Party's (PDP) stars in the southeast. He has the personal
support of President Olusegun Obsanjo who was the first to
dub Kalu the "Action Governor" because he was so quick to
initiate major growth and re-building programs for Abia state
after his election in 1999. In 2002 Kalu was embroiled in a
bitter and protracted fight with his Deputy Governor,
Enyinnaya Abaribe, that saw Abaribe and his supporters in
the State Assembly barricaded in the House of Assembly and
without pay for several months. When Abaribe decided to
challenge his boss and also run for Governor, Kalu appointed
another Deputy and easily won re-election. On a visit to
Abia State, PolOffs were impressed with the condition of the
infrastructure and government facilities in and around the
State capital of Umuahia. Kalu was a successful businessman
before entering politics. There have already been calls by
several organizations in Abia for him to run for the
Presidency in 2007. It is too early to tell whether Kalu is,
himself, "testing the waters" for a run at the Presidency or
whether these are merely attempts by admiring supporters to
put him forward as a "favorite son" candidate. End comment.


Another nationwide strike is threatened



5. (U) Renewed talks between the GON and the Nigerian Labor
Congress (NLC) on the 12.5 per cent pay raise for public
sector workers ended in a deadlock this week. The NLC has
threatened to commence a nationwide strike action on October
1 if the pay raise isue is not resolved by that date.
Central to thenegotiation between the GON and labor is a
goverment offer of between four and six per cent as aganst
the 12.5 pe
cent earlier promised by Presidnt Obasanjo.
The GON negotiating team, led by Secetary to the Government
of the Federation of Nigria, Ufot Ekaete, said that the
nation's economycannot withstand paying the promised 12.5
percent. Ekaete said that money even to pay the four per
cent still on the table, would have to be part of a
supplementary budget now in preparation and soon to be sent
to the National Assembly.



6. (C) NLC Assistant General Secretary Denja Yakub told
PolSpec that the NLC will not settle for anything less than
the 12.5 per cent promised by Obasanjo. He said the Congress
is prepared to commence an indefinite industrial action to
force the GON to honor its promises. He said, "They can not
continue to take us for a ride. We are prepared to do
anything to protect the rights of Nigerian workers."



7. (C) Comment. The NLC now appears to be fighting many
battles at the same time. It has only recently warned that
it will declare a nationwide strike action should the GON
further increase the price of petroleum products. The
Congress has also protested an alleged plan by the Nigeria
National Petroleum Corporation (NNPC) to lay off
approximately 2,000 workers. It is not clear presently what
the GON's strategy will be to stave off another nationwide
strike less than two months after a week-long NLC strike to
protest a fuel price hike nearly shut down the country.
HINSON-JONES