Identifier
Created
Classification
Origin
04DJIBOUTI1562
2004-12-08 07:39:00
CONFIDENTIAL
Embassy Djibouti
Cable title:  

BUDGETARY SESSION OPENING INDICATIVE OF FRICTION

Tags:  ECON EFIN PGOV PREL EPET PHUM DJ 
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080739Z Dec 04
C O N F I D E N T I A L SECTION 01 OF 02 DJIBOUTI 001562 

SIPDIS

LONDON, PARIS FOR AFRICA WATCHER

E.O. 12958: DECL: 12/08/2014
TAGS: ECON EFIN PGOV PREL EPET PHUM DJ
SUBJECT: BUDGETARY SESSION OPENING INDICATIVE OF FRICTION
BETWEEN PARLIAMENT AND GOVERNMENT


Classified By: Pol/Econ Erinn C. Reed for reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 DJIBOUTI 001562

SIPDIS

LONDON, PARIS FOR AFRICA WATCHER

E.O. 12958: DECL: 12/08/2014
TAGS: ECON EFIN PGOV PREL EPET PHUM DJ
SUBJECT: BUDGETARY SESSION OPENING INDICATIVE OF FRICTION
BETWEEN PARLIAMENT AND GOVERNMENT


Classified By: Pol/Econ Erinn C. Reed for reasons 1.4 (b) and (d).


1. (U) Summary: On November 29th, the Djibouti National
Assembly officially opened its second session, known as the
budgetary session, for 2004 in a ceremony presided over by
Prime Minister Dileita Mohamed Dileita. The ceremony, in
which PM Dileita and National Assembly President Idriss
Arnaoud Ali spoke, was attended by government officials,
members of the Diplomatic corps, and UN agencies. The PM's
speech highlighted the accomplishments of the 2004 budget and
enumerated several significant line items for fiscal year

2005. He also commented on current economic and political
events in Djibouti, regional issues, and international
concerns. President of the National Assembly, Idriss Around
Ali's speech was slightly critical, lamenting the small
amount of time given by the government to study the 2005
budget. Ali also touched on upcoming reforms to invigorate
the work of the National Assembly. End Summary.


2. (U) On the opening of the budgetary session of the
National Assembly, November 29th, Prime Minister Dileita
Mohamed Dileita's commentary on the performance of the
Djiboutian economy was positive. He said despite climbing oil
prices and the dollar's slump compared to the Euro,
Djibouti's economy sustained its current level during 2004.
Inflation was kept to three percent. Dileita also enumerated
the government's hopes for the 2005 budget, citing four major
projects that will be started during the fiscal year.
Consolidating macroeconomic stability, launching economic
growth, improving of human resources in education and health,
and developing of socioeconomic infrastructures were named as
key priorities for the Government.


3. (U) According to Dileita, the 2005 budget is 43 billion DF
(approx. 243 million USD). He also projected national growth
to climb to as high as 3.5 percent. Dileita commented that

projected budget savings will be reinvested in improving the
capital-city through a clean-up campaign with a budget of 700
million DF (3.9 million USD). Rehabilitation of urban
infrastructures will comprise 315 million DF (1.8 million
USD). Finalizing the Ali Sabieh cement factory through
self-investment will take 1 billion DF (5.7 million USD).
Social spending is also expected to rise substantially due to
education, health and labor measures.


4. (U) An 18 billion DF (101 million USD) program to
construct schools and hospitals will be financed by foreign
funding, including a new hospital for Balbala. The Cite Hodan
housing project began by the Abu Dhabi Fund will be expanded
from 842 units to 1842 units. Industrial projects such as the
cement and ceramic factories in Ali Sabieh will also be
launched. Rehabilitation of the road between Tadjourah and
Obock is also slated for 2005 funding. Dileita also stated
that planned rehabilitation of roads inside the city's
commercial center has just begun and the Arta- Dikhil road
construction has just been completed.


5. (U) Dileita stated that due to the trust of international
partners, public investments are growing. He cited examples
of public projects to be done in 2005 including the
construction of the Doraleh oil terminal, the regional
livestock exportation center, the commercial center and
housing development in Haramous, and construction of new
international hotels. According to Dileita, these ventures
would also lead to road improvements around the projects.


6. (U) The speech of Idriss Arnaoud Ali, the President of the
National Assembly, was somewhat critical towards the
government, specifically mentioning the late passage of the
budget to the Parliament. He lamented that budget discussions
would not have sufficient time due to time constraints before
the end of the years. (Note: The government had previously
said that the budget proposal would not be delivered on time
because it had to be approved by IMF specialists. The budget
was not approved until the night before the opening ceremony
of the session. End Note.) Ali requested the government stop
the habit of delaying important proposals like the budget
because the MP's needed to discuss it thoroughly before
expediting it.


7. (U) Ali, who seems to have the will to make changes,
openly stated his regret for the dilapidated state of the
National Assembly's building. He took the opportunity to
announce that Parliament will move to the "Palais du Peuple"
(the government convention center) until the new parliament
building is completed. (Note: This project is being financed
by a loan from Iran and is expected to take one year to
complete. End Note.) Ali also announced establishment of an
Ad Hoc commission backed by an international expert to
examine ways to improve the functioning of the parliament.


8. (C) Comment: The Ad Hoc commission Ali refers to is part
of a project financed by the UN Program for Development
(UNDP). As part of this project, the National Assembly has
brought in a former French MP, who used to be a
constitutional professor, to serve as a consultant.
Reportedly, he threw out almost every article of interior
house rules and said that the work of a parliament was not
understood at all in Djibouti. The MPs were doing merely a
minute-by-minute record of the government's laws and this is
not what their work should entail. He said among the 65 MPs,
only 15 would stand as good parliamentarians in western
standards. He also commented even in the French parliament
only 55 out of 577 are considered truly effective.


9. (C) Comment cont. On December 6th, the Minister of Finance
reportedly told UNDP Country Representative that the French
consultant was requested to leave Djibouti within 24 hours.
This request came after the consultant criticized the
government's habit of giving the Parliament only bureaucratic
tasks, such as approving the budget, while neglecting the
more important aspects of Parliamentary duties. The
consultant is reportedly not being asked to leave after
UNDP's Country Representative told the Minister of Finance
that the National Assembly would first need to be consulted,
as the consultant works now for the National Assembly. End
Comment.
RAGSDALE