GUINEA BUSINESSMEN REFORM WITHOUT CONTE CRONY

UNCLAS CONAKRY 001203 SIPDIS SIPDIS TREASURY FOR OFFICE OF AFRICAN NATIONS TREASURY FOR USED IMF AND USED WORLD BANK COMMERCE FOR SALIHA LOUCIF E.O. 12598: N/A TAGS: ECON EFIN PGOV GV SUBJECT: GUINEA BUSINESSMEN REFORM WITHOUT CONTE CRONY ¶1. (U) SUMMARY. On October 25, the Conseil National du Patronat Guineen (Patronat),the organization of employers in Guinea, unanimously reorganized their organizational structure to solidify the legitimacy of its current president, Youssouf Diallo. END SUMMARY. ¶2. (U) Earlier this year, the Patronat was headed by the self-proclaimed richest man in Guinea, Mamadou Sylla. After Sylla was arrested for embezzlement from the Central Bank, he took what he now characterizes in a radio interview as a 'vacation' from the Patronat. In the meantime, the vice-president at the Patronat, Youssouf Diallo, took over as president. The charges against Sylla were later dropped; however, Diallo stayed on as president, and continued to occupy the Patronat offices. ¶3. (U) Sylla was reportedly able to convince President Conte to have the government rescind the lease on the offices, and have Conte's personal guard forcibly remove the Diallo loyalists from the Patronat offices. Neither man has been willing to let go of their claims to the presidency of the Patronat. This has led to the current situation whereby there are two Patronats currently operating in Guinea; the Diallo Patronat and the Sylla Patronat. ¶4. (U) On October 25, the Diallo Patronat called a extraordinary national assembly of its members for the express purpose of approving a resolution to legitimize Diallo as President. The resolution annulled the previous resolution of January 2005, which had declared Sylla as president; demanded the return of USD 1.6 million allegedly embezzled from the Patronat by Sylla; called for the construction of a new office for the Patronat; and gave a vote of confidence to Youssouf Diallo as the legitimate president of the Patronat. ¶5. (U) COMMENT. This resolution comes at the same time that local press is reporting that the Minister of Justice has re-opened the criminal case against Conte crony Mamadou Sylla. It also follows Conte's recent dismissal of Sylla as the honorary president of the ruling Party for Unity and Progress (PUP) (reftel),which suggests that Sylla's support base may be eroding. However, the fact that Sylla, as president of the Patronat, attended the Economic Community of West African States first business forum in Accra last week indicates he still retains some support in the business community. That Sylla has been able to maintain a separate Patronat indicates that he has some staunch supporters at least within the economic community, although it is not clear who they are and what their stakes may be - a question the Embassy continues to explore. END COMMENT. CARTER