GOVERNMENT $144M IN ARREARS ON WAR BONUSES,

UNCLAS ABIDJAN 001255

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: MARR PGOV PREL EFIN IV
SUBJECT: GOVERNMENT $144M IN ARREARS ON WAR BONUSES,
POSSIBLY AFFECTING MILITARY MORALE

REF: ABIDJAN 1111


1. (SBU) While the payment of regular salaries is current
for both civil servants and military personnel (which
includes the FANCI, the Gendarmerie and the National Police)
as of October 31, 2006, according to sources within the
Ministry of Defense, the Government of Cote d'Ivoire is 12
months or USD 144 million (CFA 72 billion) in arrears for the
payment of "war bonuses" which have been accruing since
September 2004. The scheduled payment should be USD 12
million (CFA 6 billion) per month on war bonuses, but in
reality the war bonus payment is always partial and usually
15 days late.


2. (SBU) So-called "War Bonuses" are ostensibly paid
semi-monthly to all military personnel, including the FANCI,
the National Police and the Gendarmerie, as a reward for
their service during a time of war. Front line troops are
paid $360 monthly, while non-front-line troops earn $180.
However, budgetary pressures on the Treasury have resulted in
the reduction of the bonus by 50% (hence the arrears). "New
Recruits," those recruited after August 2002 specifically to
serve for the war effort, were paid only the war bonus, not a
regular salary, and in practice were receiving very small
amounts, if anything, given the arrears. As of March 2007,
the government plans to pay these new recruits a net salary
of USD 200 per month rather than the war bonus.


3. (SBU) Housing - The National Police, FANCI and the
Gendarmerie are allotted a rent allowance by the government
as part of their salary package. The government is committed
to paying rent allowances on a quarterly basis, but due to
administrative processing delays landlords do not normally
receive the money for at least two months after the close of
the quarter and the delays are causing a steady accumulation
of arrears - for the police, rent arrears for July, August
and September 2006 amounted to USD 3 million (CFA 1.5
billion). Lieutenant Colonel Richard Yapi, Assistant
Director of Finance at the Ministry of Defense, claims that
the government does not owe any rent arrears to the military
or the Gendarmerie, but he does acknowledge that there are
some administrative delays.


4. (SBU) Comment: The growing accumulation of arrears in war
bonuses and housing payments is fueling frustration among the
military rank and file as evinced by the recent takeover of
Plateau bridges by new Gendarmerie graduates (reftel). It is
a problem that President Gbagbo and his supporters will have
to keep an eye on as they can ill afford an erosion of their
support among the security forces. End comment.
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