CNDD PRESIDENT PUBLICLY FIRES HEAD OF CUSTOMS,

UNCLAS CONAKRY 000328 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: ECON EFIN PGOV PREL ASEC GV SUBJECT: CNDD PRESIDENT PUBLICLY FIRES HEAD OF CUSTOMS, DENOUNCES LABOR DEMANDS AS UNPATRIOTIC ¶1. (U) Summary: CNDD President Moussa Dadis Camara held a televised meeting on June 8 to discuss the economic and financial situation in Guinea and dissuade labor unions from striking. Several ministers detailed the budgetary restraints of the government and stressed the importance of revenue collection in the public and private sectors. Dadis then publicly fired the Head of Customs for requesting health and salary benefits for his employees, which Dadis called unpatriotic demagoguery. END SUMMARY. -------------- NO MONEY, NO RAISES -------------- ¶2. (U) In a televised meeting (at the Palais du Peuple) intended to dissuade workers, unions from striking, leaders from the Central Bank, Ministry of Finance, and the directors of the customs and budget offices spoke of grave financial troubles in Guinea. ¶3. (SBU) The Head of the Central Bank revealed that the Bank holds a mere $22 million in reserves as a result of corruption in the former regime (Comment: The Vice Governor of the Central Bank told Pol/Econ Chief in March that the Bank had $86 million in reserves at the end of December, just after the Coup. End Comment). The Minister of Finance echoed this analysis and encouraged the CNDD to collect all unpaid taxes and licensing fees from companies operating in Guinea. ¶4. (U) Mamadi Toure, the Director of Customs (appointed by Dadis after the Coup),used his time at the meeting to detail recent increases in revenue and request salary support and health benefits for his workers. In response, Dadis publicly berated Toure and questioned both his transparency and his patriotism. He then fired Toure on the spot and replaced him with the Deputy Director a member of the CNDD, Alpha Yaya Diallo. ¶5. (U) The rest of the three hour event continued with fiery and erratic speeches by Dadis on patriotism and vague economic plans. According to Dadis, the government is battling the economic problems left behind by the former government and as a result, cannot provide higher salaries for any public workers. He further argued that labor union demands are both selfish and unpatriotic. He closed the meeting by stating that continued questioning of the CNDD would make the country fall apart like "Sierra Leone and Liberia." -------------- COMMENTS -------------- ¶7. (SBU) The televised event was widely watched in Conakry. Dadis, threats of civil degradation and discussion of patriotism revealed a new approach to quelling worker,s unions. It is likely true that the CNDD lacks the funds to meet labor demands, but Dadis, rhetoric may not deter the unions. In many cases, unions are not asking for new or additional benefits. Rather, they are demanding that previous commitments be honored. Dadis, handling of critical economic issues and the continued lack of electricity and water are drawing increasing criticism from the population. End Comment. RASPOLIC