NEW DEVELOPMENTS ON LEADERSHIP CHANGE AT JEDDAH

UNCLAS JEDDAH 000499

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E.O. 12958: N/A
TAGS: PGOV PREL SA
SUBJECT: NEW DEVELOPMENTS ON LEADERSHIP CHANGE AT JEDDAH
CHAMBER OF COMMERCE AND INDUSTRY



1. (U) Summary: During a meeting with the Jeddah Economic
Forum (JEF) Project Manager, CG and Commercial Attach
learned of new developments at the Jeddah Chamber of Commerce
and Industry (JCCI),most importantly, additional factors
contributing to the removal of the Chairman. The recent
moves have prompted changes to the JCCI,s entire management
structure. Moreover, due to these leadership changes, the
project manager expects major problems with this year's JEF.
End Summary.


2. (U) On July 15 Consul General (CG) and Commercial Attach
(CA) met with Mr. Berhan Haily, the Project Manager for the
Jeddah Economic Forum (JEF).


3. (U) Mr. Haily detailed the latest news/activities from
the Jeddah Chamber of Commerce and Industry (JCCI),most
importantly the removal of Chairman Abdullah Yahyta
Al-Mouallimi and the appointment of Saleh A. Al-Turki to
replace him. The JCCI Board had asked Chairman Al-Mouallimi
to remove Amr Anani, the Chairman of the JEF. The Board was
not pleased with Chairman Anani because he was too
independent, too liberal, and too western oriented.
Additionally, the Board asked Al-Mouallimi to remove the
Secretary General, Mohammed Al-Sharif. Mr. Al-Mouallimi did

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not make the changes fast enough for the Board's satisfaction
and a power struggle began with JCCI Board Member, Saleh
Al-Turki. Mr. Haily said that in the power struggle of egos,
Saleh Al-Turki won. The Board will soon announce the
appointment of a group of four (4) Secretaries General.
(Note: CA later spoke with Mr. Haily and learned that Mr.
Sami F. Bahrawi was named the new Chairman of the JEF and
that the position title of Secretary General has been
eliminated. The Board just announced that there are now five
(5) general managers instead of four (4) Secretaries General.)


4. (U) When asked by the CG if the recent high profile
elections and appointments of women to the Board of Directors
had anything to do with this upheaval, Mr. Haily said no, and
that the women's elections were a force unto themselves. It
was something that most everyone agreed upon that the time
was right for women to be on the Board. He also said that
Madhawi Al-Hassoun and the other women support Al-Turki.


5. (U) Mr. Haily told the CG that he does not know what Al
Turki will try to achieve as the Chairman because in the past
he has proven to act impulsively These unspecified past
actions and the way that they were carried out, according to
Mr. Haily, will negatively affect the image, confidence,
reputation, trust and decision-making processes of the JCCI
and alienate the small and medium size JCCI member
businesses.


6. (U) Mr. Haily feels that the JEF will also be negatively
impacted because the previous speakers came through the
personal contacts of the Chairman. For the next JEF,
Chairman Anani had already been in contact with U.N.
Secretary General ) Kofi Annan, President of Ghana ) Jerry

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Rawlings, Bono, Oprah, Colin Powell and others. The program
was to focus on Africa, with Innovation and Change as the
theme. The planning for this program will be halted since
Chairman Anani will no longer be involved. The new Chairman,
Saleh Al-Turki, must now begin the difficult task of planning
of a new program ) including the topic/focus and speakers,
with only a short time for its development.


7. (U) Mr. Haily said that the speaker's budget for the JEF
is $1.4 million. He said that last year Al Gore received
$150,000, Steve Forbes $87,000, Cheri Blair $50,000, and
former German Chancellor Gerhard Schroeder &less than
$50,0008. These fees were largely to cover transportation
for the guests, their bodyguards and other related expenses.
The fees were not payment for addressing the JEF.


8. (U) When asked what we should expect from Abdullah Yahyta
Al-Mouallimi and Amr Anani now, Mr. Haily said that he
expects both to retire to quiet, private lives, away from
high profile activities.


9. (U) Bio Note: Mr. Haily, who is of Ethiopian descent,
studied in the U.S., at the University of Maine and Columbia
University. He is fluent in English and is very comfortable
with Americans. He has lived in Jeddah for the past 20
years. He also said that he plans to leave Jeddah shortly
for England, where he will begin studies for a Ph.D. After
obtaining the degree, he plans to return to his home in
Ethiopia.

Gfoeller