GOG DISPATCHES DELEGATION TO KAMSAR IN

C O N F I D E N T I A L SECTION 01 OF 02 CONAKRY 000651 SIPDIS E.O. 12958: DECL: 10/30/2018 TAGS: EMIN ECON PGOV ASEC GV SUBJECT: GOG DISPATCHES DELEGATION TO KAMSAR IN ANTICIPATION OF RIOTS REF: CONAKRY 0480 Classified By: POL/ECON CHIEF SHANNON CAZEAU FOR REASON 1.4 B AND D ¶1. (C) SUMMARY. The GoG sent a delegation to Kamsar and Boke on October 28 and October 30 in an effort circumvent mass demonstrations planned to begin November 1. The local population is threatening to destroy the railroad if their demands for running water and electricity are not met by October 31. According to a contact, the GoG plans to permanently authorize a monthly expense to cover the cost of the additional generator fuel needed to supply electricity to the surrounding areas. END SUMMARY. ¶2. (C) On October 30, Poloff met with Tidiane Diallo, a former USAID employee who accepted a senior position at the Guinean Ministry of Mines in late August. Diallo was on his way to Kamsar and Boke as part of a government delegation sent to negotiate with local civil society leaders and CBG (Guinean Bauxite Company) in anticipation of large-scale demonstrations scheduled to take place beginning November 1. Diallo provided Poloff with a copy of the GoG's proposed agreement. (NOTE. The Guinean Government owns a 51 per cent share of CBG, which provides well over half of the government's annual revenues. END NOTE). ¶3. (C)Although Diallo said that he now works for the Ministry of Mines, he told Poloff that he would not be representing the GoG during the negotiations. Instead, he plans to advocate on behalf of a local civil society organization, CADI Boke, which he helped create a few years ago. Diallo, who is originally from Boke, said that when he told the minister of mines the same thing, the minister reportedly told Diallo that he needed to wear two hats. "I told him that I would only be wearing one hat, and that I would be representing the people," Diallo said. ¶4. (C)Diallo said that the Guinean Government has made at least $5 billion in profits since CBG initially went into business under Sekou Toure, but that almost nothing has been invested back into the local community. He pointed out that the citizens' demands for running water and electricity are reasonable, especially given the environmental degradation they have had to endure over the years. Referring to local citizens' plans to organize mass demonstrations and possibly destroy the local railroad beginning November 1 if demands are not met, Diallo said that the GoG "is taking the situation very seriously because it cannot afford to lose the revenue stream." ¶5. (C) In order to meet immediate demands for water and electricity, Diallo said that the minister of mines has authorized CBG to spend 86 million GnF (about $18,000) to purchase fuel for the generators. Diallo mentioned that since the GoG is the majority owner of CBG, the minister of mines sits as the head of the board of directors. According to Diallo, the minister also plans to permanently authorize a $16,000 monthly expense to cover the additional costs for the fuel necessary to supply the neighboring towns and villages with electricity and water. However, Diallo said the minister had not yet determined who would be responsible for this expense (the GoG or CBG). ¶6. (C)Diallo said that CBG, and the GoG by association, are responsible for the strained relationship between the company and the local population. Offering an example, Diallo said that CBG is required to turn over $500,000 annually to the local government as compensation for the mine's environmental impact, a sum that is distributed directly j)QC'other local infrastructure," Diallo said. ¶7. (C)Beyond the local corruption, Diallo said that CBG was cheating the local population before the funds were ever released. According to Diallo, CBG gave the $500,000 at an exchange rate of 1000 GnF to $1.00. (NOTE. The current exchange rate is roughly 4,800 GnF to $1.00). "Instead of paying the $2.5 billion GnF they should have been paying, they were only handing over 500 million GnF," Diallo said. He added that this particular situation was the main impetus behind establishing his civil society organization, CADI Boke. The group was able to successfully stop the practice last year, and has since established the exchange rate as 4,000 GnF to $1.00 for 2008. In addition, Diallo said that CADI Boke worked with local authorities to agree on a CONAKRY 00000651 002 OF 002 specific spending plan that includes building new schools and health centers, and maintaining the local railroad. ¶8. (C)Diallo mentioned that controversial millionaire Mamadou Syllah, who is also from Boke, has also been trying to involve himself in the CBG issues in an attempt to "cleanse his reputation." According to Diallo, Syllah has been calling the minister of mines and generally pressuring the GoG to resolve the situation. Diallo added that Syllah is only a minor player, but that he is capitalizing on his close relationship with the president to try and pressure the minister, and thereby emerge as the local hero. (NOTE. Mamadou Syllah was arrested in late 2006 for embezzling more than $22 million. President Conte's intervention in his case sparked the nationwide labor strike in early 2007. END NOTE). ¶9. (SBU) The program manager for the Embassy's local guard program, who also has contracts with Bechtel and Global Alumina (located in Boke) informed RSO on October 29 that a massive demonstration may take place as early as October 31. As a result, all Bechtel and Global Alumina personnel are prohibited from traveling through Boke on October 31. A later update from the same contact indicated that the GoG sent an initial delegation to Kamsar on October 28 in an attempt to negotiate a mutually satisfactory agreement. The Conakry delegation included the President of the National Assembly, Aboubacar Sompare, and other unidentified high-level officials. Sompare reportedly asked the population to be patient through the end of 2008. -------------- COMMENT -------------- ¶10. (C) There have been frequent demonstrations in Kamsar in recent months over the lack of electricity and water. The last demonstration in August turned violent when Ousmane Conte's (the president's son) bodyguards injured three youths after firing into a crowd of protestors (reftel). The GoG will be looking to try and appease the local population as quickly as possible in order to avoid unrest. According to Diallo, CBG's revenue stream is the foundation of the government's national budget. END COMMENT. RASPOLIC