PAPA KOLY'S RISE TO THE TOP

UNCLAS SECTION 01 OF 02 CONAKRY 000422 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: ECON EMIN ENRG EAGR EINV PGOV SENV PREL GV SUBJECT: PAPA KOLY'S RISE TO THE TOP REF: A. CONAKRY 00377 ¶B. CONAKRY 00407 ¶1. (SBU) Summary: Papa Koly Kourouma, the Minister of Environment and Sustainable Development, is gaining power in the CNDD government. Although he was appointed to this position during the Conte regime, Papa Koly began asserting his power under the CNDD and taking over several key roles at the Ministry of Mines. A close friend to CNDD President Moussa Dadis Camara, as well as a fellow Forestiere, Papa Koly closed down several mines and threatened others, causing many mining companies to fear the stability of their contracts. END SUMMARY. -------------- The Dadis Connection -------------- ¶2. (SBU) A former travel agency owner and manager of bankrupt airline Air Afrique, Papa Koly was appointed as Minister of Environment and Sustainable Development in May 2008 under Lasana Conte,s regime. Papa Koly was not a close ally to Conte and was appointed under former Prime Minister Ahmed Tidiane Souare. During Conte,s regime, environmental concerns did not take precedence and environmental degradation continued without government intervention. Papa Koly stayed mum on environmental issues while reaping the benefit of mining concessions. ¶3. (SBU) The December 23rd coup d,etat brought with it a new role for Papa Koly. According to several sources in the mining community, he is a close friend of and schoolmate of Dadis and is often seen visiting Camp Alpha Yaya outside of normal business hours. It is said that Papa Koly,s mother and Dadis, mother are somehow related. They are both Forestiere from the same tribe and both speak the same mother tongue. ¶4. (SBU) In the past month, Papa Koly has shut down Ashanti Gold,s (SAG) mining facility due to environmental degradation (reftel) and the BSG Resources Limited (BSGR) for alleged water pollution associated with the mining project. He also threatened to halt the operations of Cru Gold and Guinea Alumina, arguing that the environment is suffering to the tune of millions of dollars. In a recent trip around the country, Papa Koly toured several mines, threatening many of them with high cost &environmental rehabilitation8 plans. -------------- An Inconvenient Realization -------------- ¶5. (SBU) Many of the international mining companies argue that they have exceeded environmental regulations contained in Guinea's mining codes and that Papa Koly,s threats are an extralegal form of harassment. Individuals at the Ministry of Mines (MOM) have argued that Papa Koly,s involvement in the mining sector is both counterproductive and unfounded, and that the Ministry of Environment has continually refused to review the environmental codes created by the MOM. ¶6. (SBU) Mahmoud Thiam, the current Minister of Mines and Energy, seems to be losing power to Papa Koly,s whims. A former Vice President at l,Union des Banques Suisses in New York City and an American citizen, Thiam spent most of his life abroad and studied at Cornell University. Despite his deep experience in finance and business, Thiam seems to have little influence over decisions in the mining or electricity sectors. During Dadis, widely publicized campaign for water and electricity (reftel),Thiam was absent from all major meetings and press events. Mining companies have complained to EconOff that they are unsure of who they should be directing their questions to at this point - the technocratic Thiam, or the influential Papa Koly. Without a direct line of power, they say, it is difficult to navigate CNDD decision making. ¶7. (SBU) COMMENT: Papa Koly is an example of increasing power and influence among Forestiere in the CNDD. His association with Dadis has given him virtual impunity in decision making. His growing power has sent shockwaves through the mining community, as many fear that they could be next in his line of closings. They are also beginning to recognize a trend that could weaken the ability of the Ministry of Mines to negotiate on their behalf. CONAKRY 00000422 002 OF 002 ¶8. (SBU) Although the mining industry may be damaging Guinea,s vulnerable ecosystem, the recent closings and threats not only violate mining laws and regulations, but they also seem to be for personal gain. Papa Koly has repeatedly refused requests for company-run environmental programs, instead demanding that money be paid directly to the Ministry of Environment. Many sources speculate that they will never see the environment, funds come back in the form of programs, but that they will surely find their way into Papa Koly's own bank account. BROKENSHIRE