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