SIERRA LEONE INAUGURATION - ASSISTANT SECRETARY

C O N F I D E N T I A L SECTION 01 OF 02 FREETOWN 000688 SENSITIVE SIPDIS DEPARTMENT FOR AF/W ADDIS FOR AMBASSADOR CRAWFORD E.O. 12958: DECL: 11/20/2017 TAGS: ECON PREL PGOV SL SUBJECT: SIERRA LEONE INAUGURATION - ASSISTANT SECRETARY FRAZER MEETS WITH PRESIDENT KOROMA AND FINANCE MINISTER CAREW REF: A) FREETOWN 00675 B) FREETOWN (OPENING OF PARLIAMENT) Classified By: Ambassador June Carter Perry for reasons 1.4 (b) and (d) ¶1. (C) Summary. Assistant Secretary Jendayi Frazer, as the U.S. representative to the inauguration, met with President Koroma on inauguration day. Koroma reaffirmed that he will focus on efforts to fight corruption, strengthen justice and the rule of law. Assistant Secretary Frazer replied that the U.S. looks forward to working with Sierra Leone on a range of global issues including security, human trafficking, and maritime piracy. A pending agreement on a SOFA would help on this cooperation. The Assistant Secretary said the AU position on three seats on the Security Council with veto power is not feasible and asked Koroma to share the U.S. view with other African nations. President Koroma indicated he would like to visit the U.S. in early 2008. End Summary. ¶2. (C) President Ernest Bai Koroma met with Assistant Secretary Frazer on the morning of November 15, immediately before the commencement of the official presidential inauguration ceremony. Also present at the meeting were the Minister of Finance, David Carew, and the Minister for Presidential Affairs, Alpha Bakarr Sahid Kanu. Assistant Secretary Frazer was accompanied by Ambassador Perry, DCM Pratt and Poloff. Expectations are High -------------- ¶3. (C) President Koroma welcomed the Assistant Secretary to the celebrations and provided a brief summary of what he intends to focus on as he takes up the reins of government. He emphasized that he believes he has a mandate to move forward on economic issues and to take a strong stand against corruption. He noted that the expectations of the Sierra Leonean population are very high, and that the new government faces the need to make progress in the near term. ¶4. (C) A/S Frazer welcomed the President's commitment to fight corruption and supported his focus on economic issues. She noted that the U.S. Treasury Department is a potential source of training for anti-corruption efforts. On the economic side, the Assistant Secretary observed that the MCC process offers opportunities for Sierra Leone and observed that Ambassador Perry has experience in the MCC process in Lesotho. Ambassador Perry noted that a team from the USAID regional hub is set to visit Freetown in early 2008 to assess possibilities for increased trade. Assistant Secretary Frazer reaffirmed U.S. support for adherence to the democratic and development principles of the Peace Building Commission. She also mentioned the importance of institutionalizing reforms and making free markets work. The Assistant Secretary raised the topic of the AU position that three seats on the Security Council, with veto power, be assigned to African countries. Secretary Frazer noted this was not feasible and asked Koroma to raise the U.S. view with other African nations. ¶5. (C) The Assistant Secretary affirmed that the U.S. wants to work with Sierra Leone on a range of global issues including security, fighting human trafficking, and maritime piracy. A pending agreement on a SOFA with Sierra Leone would help on this cooperation, Ambassador Perry noted. ¶6. (C) President Koroma stated that he would like to visit the U.S. early in 2008. He had been invited to attend a dinner sponsored by the Sullivan Foundation in early December, but had not been able to accept the invitation due to scheduling conflicts. Finance Minister has a Tough Job -------------- ¶6. (C) Assistant Secretary Frazer met separately with David Carew, the newly appointed Minister of Finance. Carew comes from the private sector, having worked his way up to head the consulting firm KPMG's Sierra Leone operations. Although he has only been minister for a short time, Carew noted that working in government is quite different from the private sector and expressed frustration at the bureaucratic process and the number of entrenched civil servants who can act as a roadblock to change. ¶7. (C) The Minister said that, because the GOSL is facing a severe budget shortfall, he is looking at ways to improve revenue collection. Among the options being considered are renegotiating the agreements with mining companies and introduction of a Value Added Tax (VAT). The Minister has been consulting with the IMF on these moves, and believes that the revision of mining contracts can be justified because of increases in mineral prices and that this type of revision is permissible under the original agreements. There is also ongoing coordination with the IMF on introduction of a VAT, and the plan is that the new tax will take effect in the fourth quarter of 2008 or the first quarter of 2009. ¶8. (U) Assistant Secretary Frazer did not have a chance clear on this message before departing Freetown. PERRY