"WE HAVE THE WILL AND THE ENERGY" - GOSL MAKES

C O N F I D E N T I A L SECTION 01 OF 02 FREETOWN 000560

SIPDIS

DEPARTMENT FOR AF/W (JHUNTER/ESPRUILL)
DEPT PLEASE PASS TO MCC (MCHAKA/MHARRINGTON/SKRAHAM)

E.O. 12958: DECL: 12/01/2018
TAGS: EAID PGOV PREL SL
SUBJECT: "WE HAVE THE WILL AND THE ENERGY" - GOSL MAKES
CASE FOR MCC

REF: FREETOWN 552

Classified By: Ambassador June Carter Perry for reasons 1.4 (b/d)


1. (C) Summary: Presidential Affairs Minister Alhaji Alpha
Kanu paid a surprise call on Ambassador Perry on November 28
to advocate for Sierra Leone's inclusion in the Millennium
Challenge Corporation (MCC) program. He informed the
Ambassador that he visited the MCC offices on November 24 to
discuss Sierra Leone's progress related to its FY09
scorecard, stating that it does not reflect current
realities. Ambassador agreed with his assessment, noting
improvements in several critical areas, such as
anti-corruption. Kanu requested that Ambassador make a plea
to the MCC for Sierra Leone to be given serious consideration
for eligibility at the December board meeting. Post strongly
supports Sierra Leone's interest and eventual inclusion in
MCC. We also view the government's significant interest as an
opportunity for the USG to not only advocate for responsible
and effective development in key areas, but to also push for
movement on critical issues that are currently stagnant, such
as the unsigned Status of Forces Agreement. End Summary.

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INCREMENTAL PROGRESS
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2. (SBU) Kanu was understanding of the time-lag between the
statistics that can be collected for the scorecard and
present-day. That said, he pointed out several areas where
significant improvements have been made, such as the
strengthening of the Anti-Corruption Commission and passage
of the revised law, the creation of an environmental
protection agency, and a renewed focus on land rights. This
progress, he said, is just the beginning of much larger
changes to be implemented as part of the President's
transformational vision. Kanu stated that the MCC categories
and indicators match the government's priorities, and he is
pleased that this scorecard reinforces that they are on the
right-track.


3. (U) Kanu informed Ambassador that the President has
established an MCC task force, which Kanu chairs, to ensure
that Sierra Leone positions itself to take full advantage of
the program. Besides Kanu, the task force includes key
ministers, such as Foreign Affairs and Finance. He hopes that
the task force and relevant line-ministries will receive
technical assistance in the future, to further assist with
harmonizing government policies and activities against the
MCC indicators.

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ONGOING DIALOGUE AND EFFORT
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4. (U) Ambassador informed Kanu that she engages regularly
with MCC leadership about Sierra Leone's position. Ambassador
Perry discussed the progress Kanu noted during October
sessions with Ambassador Danilovich and MCC staff. She
thanked Kanu for his continued interest in the program, and
for the President's pro-active stance in creating the task
force. She also noted that the new USAID program (PAGE) for
Sierra Leone, totaling $13 million, will assist the
government in such areas as agriculture sector development,
environmental conservation, and health. Through USAID's
implementing partners, in conjunction with the Government of
Sierra Leone (GoSL),this program will make a marked
difference on the MCC indicators of concern. The Ambassador
said she would be happy to reiterate this message to the
MCC's leadership before their December board meeting. She
would again request a technical assessment visit to Sierra
Leone and recommend that an interim grant be considered in
the future.

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QUID PRO QUO: ENCOURAGING ACTION ON PENDING ISSUES
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5. (C) Ambassador used the opportunity of the impromptu visit
to bring her concerns about the pending NGO policy to Kanu's
attention. Certain provisions, including the proposed
taxation of expatriate NGO employees, are of concern to the
USG. Further, a recent letter from American Refugees
Committee (ARC),which alleged that the GoSL is trying to
appropriate profits from its micro-finance operation, raised
red flags at post and in Washington (septel to follow). Kanu
was aware of both issues, and quickly informed Ambassador
that "double-taxation" is not their intent, nor is the
inappropriate seizure of NGO assets. He felt certain that the

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ARC situation is a "misunderstanding" and "miscommunication"
on the part of GoSL, and will quickly be resolved.


6. (C) Ambassador will follow-up with Kanu to remind him of
several other pending issues before the GoSL and President.
In particular, the much-delayed and much-needed Status of
Forces Agreement has languished on the Attorney General's
desk for months, despite approval on all sides for signature.
A request for expulsion of two alleged narcotics traffickers,
who were indicted in New York, is also pending a decision
from the President (reftel).

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COMMENT
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7. (C) For the upcoming board meeting, Post strongly urges
that MCC make a commitment to sending the director of
threshold programs to Sierra Leone for consultations and
assessments as soon as possible. This would encourage the
President's new task force, and provide them with valuable
information about moving forward. Concurrently, post will
continue to support the prioritization of activities that
address the weaknesses identified by the MCC indicators.
(Note: Post recognizes that with a change of administration,
current support programs such as the MCC may be re-evaluated,
but believes USG technical assessment of Sierra Leone's
further development would be useful. End note.)


8. (C) Cont: Kanu was extremely forward in his approach
during the meeting, from arriving at the embassy with less
than an hour's notice to entreating the Ambassador for her
assistance multiple times. He was also quick to accept the
Ambassador's position on the various topics raised, such as
the ARC issue. He made several references to inclusion in MCC
being "for the good of the party," before quickly
backstepping and saying "for the good of the country" (Note:
Kanu is an important member of the APC party. End note.). No
doubt he recognizes the political goldmine the MCC
represents, and how the President and APC would benefit if
Sierra Leone enters into a compact agreement before the 2012
elections. Kanu has not been post's primary interlocutor on
this issue in the past, but as the President's close advisor
and de facto mouthpiece, his new and intense interest
demonstrates that the MCC is one of Koroma's top priorities.
Post can use the MCC as a substantial "carrot" to push the
GoSL to action on other important bilateral issues. End
Comment.
PERRY