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.


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NO MONEY, NO RAISES
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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."

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COMMENTS
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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