Identifier
Created
Classification
Origin
05KINSHASA1678
2005-10-07 10:04:00
CONFIDENTIAL
Embassy Kinshasa
Cable title:  

NEW CAST OF CHARACTERS FOR GDRC PARASTATALS

Tags:  PGOV ECON EMIN KCOR CB 
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C O N F I D E N T I A L KINSHASA 001678 

SIPDIS

DEPT PASS TO USTR (WJACKSON),OPIC

E.O. 12958: DECL: 09/20/2015
TAGS: PGOV ECON EMIN KCOR CB
SUBJECT: NEW CAST OF CHARACTERS FOR GDRC PARASTATALS

Classified By: ECONOFF WBRAFMAN FOR REASONS 1.4 B and D.

C O N F I D E N T I A L KINSHASA 001678

SIPDIS

DEPT PASS TO USTR (WJACKSON),OPIC

E.O. 12958: DECL: 09/20/2015
TAGS: PGOV ECON EMIN KCOR CB
SUBJECT: NEW CAST OF CHARACTERS FOR GDRC PARASTATALS

Classified By: ECONOFF WBRAFMAN FOR REASONS 1.4 B and D.


1. (C) PolCouns met in September with Ngoba Maloba, the
former CEO of the Congolese electricity company SNEL, who was
replaced in the August 5 realignment of the directors of most
of the major Congolese parastatals. Although Maloba
complained bitterly that he was the victim of &political
deals,8 his position had been in jeopardy since October
2004, when he and others, including then-Presidental Chief of
Staff Boshab, were accused of appropriating several millions
of dollars from a payment made by the government of the
Republic of the Congo. (Note: Boshab subsequently lost his
job in November 2004, and was replaced earlier this year by
former Minister of Foreign Affairs Leonard She Okitundu. End
Note.)


2. (C) Interestingly, Maloba did not deny his involvement in
the misappropriation of funds, but merely noted that various
GDRC Ministers (including the Ministers of Energy and
Portfolio) routinely collect ten percent of all payments made
to SNEL. He said that usually these funds are distributed
quarterly, based on SNEL,s accounting of its receipts.


3. (C) Intense political debate culminated in the August
shuffle of most of the top management and boards of directors
of 30 of the parastatals. The restructuring parceled out
control of the parastatals (including cash cows such as SNEL,
the national insurance agency, and the diamond parastatal) to
the transitional government's factions.


4. (U) The restructuring drew fire from members of almost
every political faction, most of whom felt that some other
group got bigger or better positions. The numbers, however,
do not support these complaints. The MLC (VP Jean-Pierre
Bemba's party) and the RCD/Goma (VP Azarias Ruberwa's
faction) each control six parastatals. RCD/Goma has SNEL in
its portfolio, as well as OFIDA, the customs agency. The PPRD
(President Kabila's party) controls no fewer than ten
enterprises. VP Yerodia's "political opposition" component
(allied with the PPRD) controls five of the 30 restructured
parastatals, and VP Z'ahidi Ngoma's Civil Society is in
charge of four. Among noteworthy changes are the shifts of
Victor Kasongo, CEO of CEEC (precious minerals/metal
evaluation authority) to Okimo (gold mining) and his
replacement by a MLC party member. The MLC now controls most
of the diamond industry positions. Gecamines (copper, cobalt,
nickel, zinc mining),MIBA (diamond mining) and Lignes
Aeriennes Congolaises (Congolese airline) are among those
parastatals whose management the Presidency did not
restructure.
MEECE