SALEH FEELS PRESSURE TO REFORM, RESPONDS WITH

C O N F I D E N T I A L SECTION 01 OF 02 SANAA 000537

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/01/2016
TAGS: PREL PGOV KMCA KMPI YM
SUBJECT: SALEH FEELS PRESSURE TO REFORM, RESPONDS WITH
DRAMATIC GESTURES

REF: A. SANAA 342

B. SANAA 146

C. SANAA 522

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Classified By: Ambassador Thomas C. Krajeski for reasons 1.4 (b) and (d
).


1. (C) SUMMARY: Yemen's recent cabinet reshuffle was brought
about by, among other factors, coordinated pressure for
reform by donor countries. On February 8, Post met with
President Saleh, together with the Germans, British, and
Dutch. The delegation pressed Saleh for specific actions to
fight corruption, improve public tenders and protect press
freedom, among other reforms. Saleh reacted angrily to donor
involvement in Yemeni affairs, but agreed to consider
suggested reforms. Two days later, Saleh announced the
cabinet shuffle and instructed new members to implement a
reform agenda. Time will tell if the reforms have legs, but
early indications are positive. END SUMMARY.

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Donors Join Together to Push for Reforms
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2. (C) Political insiders had been predicting a cabinet
reshuffle in Yemen for over a year, but when the President
decided on February 11 to replace 15 ministers, it came as
something of a surprise. (Ref A) There were undoubtedly a
number of factors that led to the decision, including
upcoming elections and the recent prison escape of 23
convicts. By most accounts, however, one of the primary
factors in the President's decision was the need to respond
to the concerns of donor countries on reform measures.


3. (C) On February 8, three days before the change of
government, Ambassador and DCM joined chiefs of mission from
the United Kingdom, the Netherlands, and Germany, in a
meeting with President Saleh. The ambassadors raised with
Saleh the need for specific actions in fighting corruption,
to include inviting international observers for international
tenders. They also pressed Saleh to prosecute acts of
aggression against the press and to lay the ground for free
and fair elections. The British ambassador presented the
points as recommendations, designed to help the ROYG improve
its performance with the Millennium Challenge Corporation and
the World Bank. The reform suggestions were drawn from an
open dialogue process between donors and the ROYG. (Ref B)

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Saleh: "I'm Easily Agitated"
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4. (C) In what appeared to be a well-rehearsed performance,
Saleh accused the British Ambassador of intervening in
Yemen's internal affairs and stormed out of the meeting,
muttering loudly about "British colonialist attitudes." When
the four ambassadors prepared to leave, however, he invited
them back one by one to clarify his position. Saleh said:
"I'm a Bedouin, and am easily agitated. I get angry when
people dictate to me." DCM discussed the issue of
international observers at the High Tender Board in more
detail, explaining that the donors had no intention of
infringing on Yemen's sovereignty but only wanted to help
improve Yemen's credibility internationally. DCM compared
such measures to Palestinian elections, in which the United
States didn't like the outcome, but could not question the
legitimacy of the process. Saleh appeared willing to
consider such a prospect, and promised to have his advisors
look at the donor proposals.

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Harsh Rhetoric but Promising Changes
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5. (C) Following the meeting, Saleh made a number of
statements to the press rejecting any conditionality to
foreign aid. Nevertheless, in his first speech to the
Cabinet, the President placed tendering reform at the top of
his list of priorities. He also agreed to remove himself as
the head of the Supreme Judicial Council, one of the primary
objectives of Yemen's Millennium Challenge Threshold Plan.
By replacing Deputy Prime Ministers Ahmad Sofan and Alawi
al-Salami, Saleh also removed the two officials most
associated with public tendering and budgeting controversies.


6. (C) In a February 27 meeting with Econoff, ROYG officials
shared a number of other positive signs of progress. Deputy
Minister of Finance Dr. Mohammed al-Mansoob said the new
Finance Minister had given him control of key budget reforms,
formerly the domain of Salami's son-in-law. He also said the

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minister was already firing some of the most notoriously
corrupt officials in MOF. The well-respected Minister of
Local Administration, Sadeq Abu Ras, was charged to head up a
committee to finalize critical procurement reforms. The
Ministry of Planning, together with the Ministry of Oil, are
taking steps to join the Extractive Industries Transparency
Initiative. (Ref C) Mohammad Al-Sabry, Chief Economist at
the President's Office, said that all of these moves are a
direct response to donor pressures. The best thing the
donors can do a this stage, continued Sabry, is to continue
pushing for specific reform measures over the next six months
leading up to elections.

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Is Yemen a Partner for Reform?
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7. (C) COMMENT: New faces in the Cabinet do not by themselves
constitute progress on reforms. Many ROYG officials caution
that the new government could prove to be little more than a
caretaker government before the next elections. In addition,
one important holdover from the previous cabinet is PM
Bajammal, the godfather of some of the most corrupt deals to
date. Nevertheless, the initial indications are that the
President is responding to outside pressure and has charged
his Cabinet with implementing long-delayed changes. Despite
Saleh's demonstrative rhetoric against foreign intervention,
he appears to recognize the imperative of advancing reforms
in order to qualify for support from the World Bank, MCC, and
others. Changes in key ministries have altered the political
landscape, and the coming months will offer a litmus test for
whether Yemen is a true partner for reform. END COMMENT.
Krajeski