SCENESETTER FOR PRESIDENT YAYI'S TRIP TO THE U.S.,

C O N F I D E N T I A L SECTION 01 OF 02 COTONOU 000408

C O R R E C T E D C O P Y - (FIXED FORMATTING ERRORS)

SIPDIS

DEPARTMENT FOR AF/W:DBANKS/ESPRUILL
DEPARTMENT PLEASE PASS TO USAID AND PEACE CORPS
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E.O. 12958: DECL: 07/11/2018
TAGS: OVIP EAID EAGR PGOV PREL PINR EFIN LY BN
SUBJECT: SCENESETTER FOR PRESIDENT YAYI'S TRIP TO THE U.S.,
JULY 15-21, 2008

REF: A. BROWN/BANKS E-MAIL OF 7/9/2008

B. COTONOU 396

C. COTONOU 349

D. COTONOU 348

E. COTONOU 262

F. COTONOU 255

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Classified By: Ambassador Gayleatha B. Brown. Reasons 1.4 (b&d).


1. (SBU) Summary: Benin,s President Boni Yayi travels to
Washington, D.C., July 15-21, 2008, primarily for talks with
the World Bank and the IMF and to seek assistance for plans
to energize the country,s agricultural sector and to
follow-up on earlier requests for food aid. His request for
meetings with USG officials is linked to several issues of
concern, including a growing problem in the agriculture
sector, implementation of the MCA Compact, and efforts to
curb corruption. Yayi also wishes an opportunity to
demonstrate strong US/Benin ties as he continues to struggle
at home to achieve economic growth and good governance
objectives. A successful visit to Washington would raise his
political capital at home where a stalemate in the National
Assembly is blocking essential legislation and on the African
continent where he hopes to strengthen his position as a
regional player in the wake of hosting the 10th CEN-SAD
Summit. End summary.


2. (U) President Boni Yayi of Benin will meet with World Bank
and IMF officials during his July 15-21, 2008 visit to
Washington, D.C. In addition, he has requested appointments
with President Bush, Secretary Rice, Director of Foreign
Assistance Fore, Millennium Challenge Corporation (MCC) CEO
Danilovich, and Peace Corps Director Tschetter. His
delegation includes: Pascal Irenee Koupaki, Minister of
State for Economic Forecasting, Development and the
Evaluation of Public Action; Roger Dovonou, Minister of
Agriculture, Animal Husbandry, and Fishing; and S. Lawani,
Minister of Finance.

//STALEMATE AT HOME//


3. (U) The strong political coalition that secured President
Yayi,s election in March 2006 is crumbling. Although Yayi
won a majority of the communes in the April 2008 municipal
elections, his desire to create a single list of candidates
from his Force Cowry for an Emerging Benin (FCBE) movement
drove a number of National Assembly deputies from his
governing coalition. Those deputies and others from
opposition parties now hold a majority in the National
Assembly, blocking key Government of Benin (GOB)-sponsored
legislation. This includes the new penal and civil codes
that are instrumental to the implementation of USG-funded
projects such as the Women,s Justice and Empowerment
Initiative (WJEI).


4. (U) The anti-corruption fight also has stalled. The GOB
has had little success in its pursuit of high-profile
corruption cases against alleged corrupt, former government
officials. For example, the Supreme Court recently ordered
the release without bond of Sefou Fagbohoun, a powerful
opposition party leader whose case had long lingered with no
action. The GOB had accused Fagbohoun of embezzlement and
mismanagement of the privatized gas parastatal SONACOP. He
promptly took his place in the National Assembly, a position
won from a jail cell and where he now has parliamentary
immunity. Yayi,s efforts earlier to convince the parliament
to lift immunity in another case also failed.


5. (U) In addition, President Yayi is under pressure over
rising consumer prices. Workers peacefully protested on July
10 against the high cost of living related to food prices.
To make matters worse, the GOB is running short of funds used
to subsidize prices of key commodities to the consumers (Ref
F). President Yayi organized a June 24 briefing for donors
on the problem, explaining that GOB efforts to reduce the
prices of foodstuffs and construction materials, through
subsidies and cuts in import duties and VAT, have cost the
GOB FCFA 48,248,478,989 (approximately USD 114,877,331.)

//LIBYA LEAVES BENIN WITH A WHOPPING CEN-SAD BILL//

6.(C) To make matters worse, Libya did not keep a promise to
provide substantial funding to help defray GOB expenses for
the recent 10th CEN-SAD summit in Cotonou, according to
President Yayi. He told the Ambassador on July 3 that
instead of the expected USD 10 million contribution from
Libya, the GOB received only USD 3 million, most of which
went to pay the Libyan delegation's living and lodging

COTONOU 00000408 002.4 OF 002


expenses (including Mr. Khadaffi's tent). The Chief of Staff
at the Finance Ministry confirmed that Libya's contribution
totaled FCFA 1,255,675,958 or approximately USD 3 million.
Moreover, to facilitate Libyan financed, private-sector
construction of 69 luxury villas for the CEN-SAD summit, the
GOB recouped prime land near the Cotonou airport from private
owners and gave generous tax breaks for the project. Yayi
said that of the promised 69 villas, the Libyans only built

40. The Foreign Minister told the Ambassador that contrary
to Khadaffi's wishes, Benin did not press Khadaffi's
controversial position on African unity (Ref D) at the recent
AU meeting in Egypt - a testimony, he said, to Benin's
independence.

//GOB ISSUES FOR DISCUSSION IN WASHINGTON//


7. (SBU) Per Ref A, MFA Americas Acting Director told post
that President Yayi,s issues for discussion with USG
officials include:
USG:
- agricultural development; food crisis; transformation of
the Cotton industry; OPIC
- international cooperation: CEN-SAD, G-8 resolutions
- climate change
- democracy in Africa
- MCA Compact (delays in implementation related to the Port
of Cotonou and the Access to Justice Program, efforts to curb
corruption and related laws, and additional funds for the
current Compact and a Compact II)
- recent dismissal of the Port Director that is not expected
to derail Port reforms
- tour d,horizon on USAID programs (health, education and
WJEI) and
- assistance in arranging a meeting with Bill Gates.
World Bank/IMF: Post expects President Yayi,s talks to
focus on budgetary assistance, the status of Benin,s
structural adjustment reforms and release of donors, 2008
budget support funds.


8. (SBU) Comment: President Yayi,s visit to the United
States presents an opportune time for USG officials to
reiterate support for his stance against corruption and
encourage concrete action to arrest and try corrupt
officials. The GOB also needs to fully engage in the
President,s Malaria Initiative (PMI) by committing the
requisite personnel for implementation of the program. In
some respects, Yayi is between a rock and a hard place.
Crippling defections from FCBE in the National Assembly
hamstring GOB efforts to move forward on key economic and
social legislation, thus hampering his ambitious program for
growth and development and ability to meet the high
expectations for change of the electorate.

BROWN