GABON AND SAO TOME MISCELLANY 16-22 MARCH

C O N F I D E N T I A L LIBREVILLE 000192 SIPDIS SIPDIS LONDON AND PARIS FOR AFRICA WATCHERS KINSHASA PASS BRAZZAVILLE E.O. 12958: DECL: 03/23/2016 TAGS: PGOV GB TP SUBJECT: GABON AND SAO TOME MISCELLANY 16-22 MARCH Classified By: POLITICAL OFFICER GLENN FEDZER FOR REASONS 1.4 (B) AND (D) ¶1. (C) GOG Boosts Fuel Prices. Gabon announced an increase in retail fuel prices of 5.5 percent May 15, satisfying demands from fuel distributors but angering taxi drivers. Distributors were concerned their margins were being squeezed because of price caps at the pump; taxi drivers for their part are concerned it may be difficult to pass on the increases to public. The increase did nothing to address the IMF's concern (Libreville 167) that price controls for products leaving the refinery cost the government 130 million dollars in 2005 and may cost 180 million in 2006, but provided benefits mostly to Gabon's wealthier citizens. ¶2. (C) Ambassador to US center of controversy between Sao Tome President and Government. The Sao Tome Government announced to the press March 10 its dissatisfaction with the appointment of former Foreign Minister Olvideo Pequeno to be Sao Tome's new Ambassador to the United States, and the opening of embassies in Washington and Abuja. According to the statement, the moves did not follow proper procedure. The government also complained that funding for the two embassies and the ambassador was not in the budget approved by the National Assembly. (This echoes complaints made when funds donated by the government of Morocco were spent outside budgetary processes.) Prime Minister Maria do Carmo Trovoada told the Embassy that article 82 of the constitution did give the president the authority to appoint ambassadors, but only following a proposal from the Government; instead, President Menezes arranged everything quietly and without authorization. Asked why she raised the issue now (in the middle of an election campaign) rather than when the nomination was made months ago, Trovoada claimed she never saw a request from the Foreign Ministry or a response from the U.S. Government. She said she had told the President there were no funds to cover expenses at these two posts. (Note: The Embassy understands that Taiwan has provided start-up funding for both embassies.) ¶3. (U) Disgruntled Military Retirees Torch Trucks and Cars. Military retirees set fire and destroyed at least four logging trucks and damaging others on Gabon's major road to �A;the interior March 7, and are likely behind the burning of six vehicles in Libreville March 20. The retirees have been periodically staging demonstrations (including blocking the main road into Libreville February 13) to push for greater benefits from the government. Security forces arrested 21 demonstrators March 8, and Government spokesman Rene Ndemezo Obiang called on demonstrators to give the government time to resolve the problems; the retirees, for their part, demanded the release of their comrades, noting that resorting to barricades was the sole means to make oneself heard in Gabon. Violence broke out again March 20 in Libreville, with culprits damaging shop windows as well as burning cars. The attacks occurred in the district containing opposition leader Pierre Mamboundou's Libreville residence. Police later sealed off Mamboundou's compound and confiscated computers and files; Mamboundou fled to the South African Embassy (septel). ¶4. (U) Gabon Checking Dead Birds for Avian Flu. Ndjole residents reported finding dead birds in their town the evening of 18 March. Without any clear explanation for the deaths, the residents decided to report their discovery to the Ministry of Health. The ministry dispatched a team to initiate a process to verify if the deaths were an outbreak of Avian Flu. Coincidentally, Gabon is hosting a regional conference on Avian Flu sponsored by the World Health Organization (WHO) that started Monday 20 March. Participants in the conference do not appear to consider the funding of dead birds in Gabon a cause for particular immediate concern. ¶5. (SBU) Opposition Members Demand Joint Meeting With President. Leaders of six opposition parties, including Presidential Candidate Zacharie Myboto of the UGDD, are pressing demands for a joint meeting with the President to discuss irregularities with the electoral system. The group, which notably does not include Pierre Mamboundou, has also demanded the presence of international mediators. The Government has refused the demands, offering instead for the President to meet with opposition leaders separately and without international mediators. The story was given fairly prominent coverage on page three of the Government-controlled daily "L'Union." A representative of the UGDD asserts that Mamboundou is not a signatory because he is more interested in creating "big spectacles" in public. ¶6. (U) Oil Block Agreements Signed Sao Tome is set to receive $28.5 million in signature block bonuses (out of a total of $200 million) from blocks two, three, and four of the Joint Development Zone (JDZ). Although Sao Tome normally receives 40% of revenues from the JDZ, Environmental Remediation Holding Company (ERHC) is exempt from paying signature bonuses; the amount ERHC would normally pay is deducted from Sao Tome's share. This is a consequence of the renegotiation of a 1997 agreement between Sao Tome and ERHC. Block Two Block Three Block Four Total Block Price: $70 million $40 million $90 million $200 million Nigeria $42 million $24 million $54 million $120 million Sao Tome $7 million $8 million $13.5 million $28.5 million ERHC $ 21 million $8 million $22.5 million $51.5 million (non-payment lost to Sao Tome) WALKLEY