CNDD PRESIDENT DEMANDS "DONATIONS" FROM BUSINESSES

UNCLAS CONAKRY 000327 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: ECON EFIN PGOV PREL ASEC GV SUBJECT: CNDD PRESIDENT DEMANDS "DONATIONS" FROM BUSINESSES TO SUPPORT INFRASTRUCTURE ¶1. (U) Summary: CNDD President Moussa Dadis Camara held a mandatory meeting for all large businesses operating in Guinea at the Palais du People on Saturday, June 6, to solicit "donations" for Guinea,s water and electricity sector. The President gave businesses 72 hours to commit direct funding for CNDD infrastructure programs or risk being forcibly closed. End Summary. -------------- PARTICIPATION PREVENTS CLOSURE -------------- ¶2. (U) On June 5, Dadis announced that he would hold a meeting for all large enterprises in Guinea the next day to discuss solutions to Guinea,s electricity and water problems. In a proclamation read over national radio, Dadis threatened closure for all absent companies. Pol LES attended and estimated total attendance at between two and three thousand. ¶3. (U) In an erratic, ten minute speech delivered two hours late at the Palais du People, Dadis angrily demanded that all companies pledge an unspecified amount of funding to the CNDD to create a reliable water and electricity system throughout Guinea. Hurling insults, he insisted that the private sector has a responsibility to the Guinean people. He also threatened to raise licensing fees for companies to generate revenue for infrastructure development. ¶4. (U) Dadis spoke favorably of many Lebanese companies working in Guinea who already gave large donations to the CNDD, and encouraged others to follow suit. Before closing the meeting, he said that there would be no talk about democracy until everyone in Guinea had electricity and water, at which a segment of the audience clapped. He then opened the floor to a question and answer period, calling on the Minister of Environment to come to the microphone. However, after the Minister had said only a few words, Dadis abrubtly cut him off, saying that the discussion was over. ¶5. (U) Some of the companies in attendance made large monetary pledges to government officials after the meeting, while others fought the demands in a session with the Prime Minister directly after Dadis, speech. At the end of the meeting, however, no company rejected the demands outright. ¶6. (SBU) The Guinean Director of Global Alumina complained to Pol LES that Dadis, actions would drive investment out. He wrote Dadis, comments off as "just nonsense," but said that his speech was an embarrassment to Guinea. Other business leaders from Orange, Cellcom, and Rio Tinto had similar comments and saw Dadis, latest actions as indicative of the government,s growing intervention in the private sector. -------------- COMMENTS -------------- ¶7. (SBU) According to participants, Dadis was highly insulting, argumentative, and menacing. While he may be legitimately seeking funds to support infrastructure, it is also likely that he is trying to publicly demonstrate that he is doing something to address the electricity crisis, which has worsened significantly in recent weeks. However, Dadis, approach suggests that he has no idea of what is required. The problem is much more complicated than simply flipping a switch or buying more generators. The economic community s seeming willingness to contribute funds on demand is consistent with how businesses have been dealing with the CNDD - they keep opening their pocketbooks in the hope that the CNDD will eventually leave them alone. END COMMENT. RASPOLIC