CNDD HARASSMENT OF BANKING SECTOR IMPEDES

C O N F I D E N T I A L CONAKRY 000348

SIPDIS
SENSITIVE

E.O. 12958: DECL: 06/16/2019
TAGS: PGOV PHUM PREL ASEC GV
SUBJECT: CNDD HARASSMENT OF BANKING SECTOR IMPEDES
INVESTMENT

Classified By: ECONOFF BWARNER FOR REASONS 1.4 (B) AND (D)


1. (C) Summary: A meeting with Jerome Dagnaud, the Director
General of an international commercial bank operating in
Guinea, revealed significant harassment of the banking sector
by the CNDD during the last two months. Individuals working
in the banking sector are frequently summoned by the CNDD to
solicit monetary "contributions" for various GOG social
projects. Actions taken by the military junta appear to be
paralyzing international investment to Guinea. END SUMMARY.


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BANK EXECUTIVES SUMMONED TO CAMP ALPHA YAYA
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2. (C) According to Jerome Dagnaud, the Director General of
an international commercial bank, the CNDD convened several
meetings in May and June to solicit monetary "support" from
banks. The first of these meetings was announced on the radio
on a Sunday night at 9pm in an erratic proclamation by CNDD
President Moussa Dadis Camara. Although Dadis demanded that
all bank executives be at Camp Alpha Yaya by 8am the next
day, none of them heard the speech and the meeting was
unattended.


3. (SBU) A few hours later, each bank executive was visited
at his office by gendarmes who demanded their presence at the
camp by 8am on Tuesday and threatened their security. Upon
arrival at Camp Alpha Yaya on Tuesday, the bankers were
placed in a holding facility for petty criminals, where they
waited six hours for Dadis.



4. (C) Arriving at the meeting with Tiegboro Camara, the
Secretary of State for Special Services, Anti-Narcotics, and
Organized Banditry, Dadis proceeded to rant at the delegation
for their absence the day before. He and Camara continued to
berate the bankers for supposedly disrupting the economy and
stealing from the Guinean people. Dadis demanded that the
banks repay the Guinean people for their supposed wrongdoings
by giving donations to the CNDD. The tirade lasted nearly two
hours before the bankers were given an opportunity to speak.


5. (C) Later, one of the members of the delegation asked
that they be notified by letter or phone for the next
meeting; Dadis refused and dismissed the group. Mr. Dagnaud
and other members of the banking community were summoned to
the camp on two subsequent occasions and rebuked for events
that took place decades ago. Each time, they waited for hours
for Dadis and in a holding room with various criminals. The
CNDD continues to summon bank officials to the camp to
intimidate the financial sector. Mr. Dagnaud sarcastically
noted, "we are not impressed."


6. (C) Mr. Dagnaud complained that Dadis,s erratic actions
and the CNDD,s infringement on private industry is
paralyzing investment activity in Guinea. He also noted that
investors fear Guinea,s unstable government whose policy and
leadership could change at any moment. Though most companies
with investments in Guinea are not fleeing yet, they are
halting expansion plans or new investment as a part of a
"wait and see" approach to the CNDD.


7. (C) International companies are having a particularly
difficult time with the current government, Mr. Dagnaud
pointed out, because they cannot just "contribute" to CNDD
social programs without consent from their home office.
Dadis, demands for infrastructure donations from several
economic actors (reftel) have made companies, corporate
headquarters very wary of the investment climate in Guinea.


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COMMENT
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8. (SBU) The investment climate in Guinea has become
increasingly unstable under the CNDD. Investors are worried
that contractual arrangements can be easily dissolved or
completely ignored. Serious commercial inquiries at banks
have nearly disappeared, creating a revenue shortfall for
many of Guinea,s lending institutions. Such revenue
reduction for banks could severely limit the already meager
borrowing ability of Guineans, and further erode the economic
stability of the country. END COMMENT.
RASPOLIC