GOB PERSISTS AGAINST CORRPUTION AT STATE ELECTRICITY

UNCLAS COTONOU 000888

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR AF/W (DBANKS)
PARIS FOR D'ELIA

E.O. 12958: N/A
TAGS: PGOV ENRG BN
SUBJECT: GOB PERSISTS AGAINST CORRPUTION AT STATE ELECTRICITY
COMPANY

REF: COTONOU 477


1. (U) Summary. The GOB's State Audit Office (IGE) unveiled a report
detailing widespread corruption and mismanagment at the Benin
Electric Energy Corporation (SBEE),Benin's state-owned electricity
company, during a Council of Ministers' meeting on November 10,

2007. The allegations of corruption extend to 18 Beninese
officials, including two former Executive Directors of the Benin
Electric Energy Corporation (SBEE) who now sit in the National
Assembly, and the former Minister of Mines, Energy and Water
Resources under the Kerekou regime. President Yayi now must ask the
National Assembly to lift the two accused deputies' immunity. In
spite of President Yayi's known commitment to cracking down on
corruption, critics said that there is little chance the Assembly
will lift its members' immunity given the resulting implications for
the rest of the Assembly. End Summary.


2. (U) According to the IGE's report, which covered the period
between January 2004 and July 2007, 18 officials from the Ministry
of Mines, Energy and Water Resources, the Public Procurement
division, SBEE and two notaries were involved in corruption,
including financial and administrative mismanagement, illegal awards
of public procurement contracts, illegal transfers of money,
improper payments, over billing customers and bribery. Most
strikingly, the report concluded that corruption extended to the
highest levels of the SBEE and the GOB. The report accused Kamarou
Fassassi, former Minister of Mines, Energy and Water Resources under
President Kerekou, Celestine Adjanohoun and Luc Da Matha Santana
(also spelled Sant'Ana),former executive directors of SBEE of
criminal acts and mismanagement of the SBEE which led to Benin's
energy crisis.

4.(U) Adjanohoun and Santanta are both deputies in the National
Assembly and members of President Yayi's political movement, Force
Cowry for an Emerging Benin (FCBE). They both benefit from immunity
from any prosecution while serving as deputies. Consequently, the
Council of Ministers recommended that President Yayi request the
National Assembly lift Adjanohoun and Santana's immunity so that a
prosecutor may question them. Fassassi, as a former minister, must
be tried before Benin's High Court of Justice after the consent of
the National Assembly. If the National Assembly approves the
decision, Fassassi will be the second former minister to be
prosecuted by the High Court of Justice following Alain Adihou, the
former Minister of Institutional Relations, who has been imprisoned
since last year.


4. (U) Either of these actions requires supermajorities in the
National Assembly. Lifting a deputy's immunity requires the assent
of three-quarters of the deputies. A two-thirds majority is
required to bring a former minister before the High Court of
Justice. As President Yayi's FCBE has 46 out of 83 seats in the
National Assembly, he will need to work with other parties to bring
these individuals to justice.


6. (U) This is President Yayi's second request to the National
Assembly to lift Adjanohoun and Santana's immunity (Reftel). He
asked the National Assembly earlier this year to lift their immunity
to allow the IGE to question them. His request was rejected by the
National Assembly at that time on procedural grounds. Now,
following the IGE report, the President believes he is on firmer
ground with his request. Many public commentators doubt the Assembly
will change its opinion now as it would set a precedent which could
expose any deputy to prosecution. The lack of well-defined
procedures to lift immunity could allow the Assembly to again cite
procedural irregularities in a decision to not lift Adjanohoun and
Santana's immunity.


7. (SBU) Comment: President Yayi's decision to move against
Adjanohoun and Santana, deputies in his alliance, and Fassassi, who
was the first political leader to endorse him in the presidential
election run-off, illustrates his commitment to fight corruption.
These moves also go some way torward putting to rest a perception
which was spreading in Cotonou that President Yayi's allies were
exempt from criticism. It does remain doubtful, in light of the
Assembly's prior refusal to lift immunity, that Adjanohou, Santanta,
and Fassassi will face justice in the near future. End Comment.

BROWN