ARRESTS, APPOINTMENTS, AND MACHINATIONS: A

S E C R E T SECTION 01 OF 04 CONAKRY 000076

SIPDIS
SENSITIVE

E.O. 12958: DECL: 01/28/2019
TAGS: PGOV PHUM EINV PREL BIOS KIPR GV
SUBJECT: ARRESTS, APPOINTMENTS, AND MACHINATIONS: A
POLITICAL ROUNDUP FOR 19-26 JANUARY

CONAKRY 00000076 001.2 OF 004


MINIMIZE CONSIDERED FOR AMEMBASSY TRIPOLI

REF: A. 08 CONAKRY 776

B. CONAKRY 064

C. CONAKRY 070

Classified By: ECONOFF T. SCOTT BROWN FOR REASONS 1.4 (B) AND (D)


1. (U) SUMMARY. Politics in Guinea continue to be fluid since
the coup d'etat on 23 December 2008. Given these
circumstances, post will transmit as needed roundups of
presidential appointments, military arrests, and any other
political machinations. END SUMMARY.

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"THERE IS NO LAW IN CONAKRY"
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2. (SBU) The Spanish Ambassador told Charge that military
officials recently arrested four Spanish businessmen who
claimed to be in Conakry to purchase gold. The Ambassador
said the military suspected the Spaniards of being Latin
American narcotics traffickers, even though the men stated
that they have frequently traveled to Guinea in the past to
buy gold. Soldiers took the men to Camp Alpha Yaya. When
the Spanish Ambassador requested a consular visit at the
camp, a guard refused the request, saying: "Since the coup,
the constitution is suspended. There is no law in Conakry."
Two of the men were subsequently released after having been
denied food for over 48 hours; two are still in custody.


3. (SBU) The British Ambassador told Charge that military
officials helicoptered to a gold mining camp near Siguri in
Upper Guinea and demanded that the camp turn over all their
stores of gold for an audit. When the mining officials in
charge of the vault refused, the soldiers arrested them and
took them to Conakry "to speak with the president." A CNDD
spokesperson later said that the raid was part of an ongoing
investigation of the unnamed company, but did not say if the
military had released the detainees.

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ARMY HOLDS TELECOM COMPANY OFFICIALS FOR RANSOM
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4. (C) On 20 January 2008, soldiers arrested an Israeli
businessman from the headquarters of the American
telecommunications company Cellcom. According to a contact
close to DATT, the soldiers claimed that they were sent by
the Minister Secretary General of the Presidency, Major
Keletigui Faro. The soldiers arrested the company's CFO, Mr.
Shai Arbas, without explaining the charges against him.
Contact stated that he thought that the incident was likely
initiated by a former Cellcom employee who had a grievance
against Arbas.


5. (C) Though the military later returned Arbas to his
company headquarters after he agreed to unstated military
demands, soldiers again raided Cellcom on 22 January when the
company did not comply. During the raid, Minister of
Security Toto Camara arrived on the scene and ordered the
soldiers to depart, which they did. At a later meeting,
Executive Director of Cellcom Avi Zeidenberg told Charge that
the dispute concerned unpaid severance wages owed to several
former Cellcom employees. DCM raised this issue with the
prime minister on 23 January, and made clear the U.S. views
this type of activity by the military as unacceptable. The
PM apologized for the raids, and promised to issue a
statement threatening disciplinary action on any soldier who
takes part in such activity (ref C).


6. (C) In a related but separate incident, a contact told
DATT that soldiers detained a Franco-Senegalese director of
telecommunications company Intercel on 19 January. Contact
said the arrest involved a dispute over funds owed to the
government, and reported that the company paid approximately
$600,000 by check for his release. Soldiers reportedly held
the employee for a day at Camp Alpha Yaya so that the check
could clear at the Central Bank, and then released him
sometime on 21 January.

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COCA-COLA REPS ALSO SHAKEN DOWN
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7. (C) On 26 January, military officials arrested several
directors of Bonagui Corp., a subsidiary of Coca-Cola, after
an employee told police that he had been wrongfully
terminated several days earlier. Heavily armed soldiers
appeared in the company's office and requested that the
General Manager, Financial Manager, and Human Resources
Manager accompany them to Camp Alpha Yaya. After
interrogating the company officials for several hours, the
soldiers finally released them without making a final
assessment of the case.

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SUMMONSES ISSUED AS AUDIT COMMITTEE BEGINS WORK
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8. (U) Over the past two weeks, an audit committee began
spearheading investigations into a variety of alleged
misdeeds by political power players and other well known
economic actors. Minister of Defense Sekouba Konate heads
the committee, which is composed of both of soldiers and
civilians. At their behest, military officials detained and
escorted the following individuals and groups to Camp Alpha
Yaya, reportedly to justify their outstanding balances with
the Central Bank of Guinea or alleged misuse of funds.

-- Mamadou Sylla, controversial tycoon with close ties to
late President Conte - $22 milllion in overcharges and
additional GNF 16 billion ($3.3 million) in irregular Central
Bank withdrawals.

-- Managing Director of the Guinean electric utility EDG -
GNF 6 billion ($1.25 million) for irregular loans from the
bank BNP Paribas.

-- Idrissa Thiam, former Protocol Director at the Presidency
- $40 million in missing funds donated by Kuwait. According
to a contact, Thiam had originally not planned to honor the
CNDD summons; however, military officials arrested one of
Thiam's sisters, whom the CNDD released when Thiam presented
himself at the camp.

-- Managing Director of Rusal, the Russian mining giant - GNF
67 billion ($13.9 million) in funds owed to the state.

-- Alseny Barry, sugar importer with close ties to former
Prime Minister Lansana Kouyate, and Mamady Kourouma, rice
importer - $14 million for irregular loans from the bank BNP
Paribas.

-- Baidy Aribot, ex-Minister of Youth and Sport -
mismanagement of GNF 70 billion ($14.5 million) in funds for
the 2008 African Nations Cup in Accra.

-- Ousmane Dore, former Minister of Finance - mismanagement
of GNF 25 billion ($5.2 million) for Guinea's 50th
Anniversary of Independence celebration.

-- Abdoul Aziz Soumah, former official at the Islamic League,
and Sekouba Conde - GNF 9.7 million ($2 million) in missing
funds associated with the 2006 hadj.

-- Several business owners connected to the International
Bank for Africa in Guinea (Banque Internationale pour
l'Afrique en Guinee - BIAG),including Mamadou Sylla and the
owners of the large Conakry supermarket SuperBobo - GNF 17
billion ($3.5 million) of mishandled funds connected to the
bankruptcy of the bank.

-- Board of Directors of the Alumina Company of Guinea (ACG)
- GNF 67 billion ($13.9 million) in mishandled funds.

-- Adinand Aboukhalil, the Lebanese owner of lottery firm
Lonagui-PMU Guinee - GNF 4 billion ($833,000) in overdue
taxes and fees.

-- Elhadj Gale Hann, transport and fuel magnate - GNF 1.7
billion ($354,000) in missing funds.

-- Sylla Mariador, hotel owner; Guelguedji Barry, sugar and
rice importer; and Alpha Amadou Diallo, rice importer - GNF
17 billion ($3.5 million)


9. (SBU) As of 27 January, most of the individuals summoned

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had been released pending further investigation. The CNDD
announced that charges had been dropped against Dr. Ousmane
Dore, Baidy Aribot, and all involved in the BIAG affair.
Idrissa Thiam is still in custody at Camp Alpha Yaya.

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CHINESE DRUG COUNTERFEITERS ARRESTED
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10. (U) On 21 January, military officials announced the
arrest of three Chinese charged with peddling fake,
French-branded pharmaceuticals. The men reportedly
manufactured the drugs using flour as a primary ingredient.
A CNDD spokesperson said that an investigation into the
matter is currently pending (ref C).

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RIO TINTO AND BSRG ORDERED TO HALT OPERATIONS
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11. (S) On 20 January, the CNDD ordered mining giant Rio
Tinto and rival mining company Benny Steinmentz Resource
Group (BSRG) to halt all operations on the disputed Simandou
claim in southeastern Guinea. During the late President
Conte's administration, the GoG had revoked Rio Tinto's
rights to the Simandou claim. Rio alleged that corrupt
practices by BSRG had led to the revocation (ref A).
According to sources, an audit commission will investigate
the rival claims and make a determination in the matter,
though the CNDD has not announced a timetable for a final
decision.

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NEW MINISTER OF MINES SAYS CONTRACTS WILL NOT BE REVISED
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12. (U) On 21 January, new Minister of Mines Mahmoud Thiam
announced that the military junta would not revise any mining
contracts currently in force. This statement apparently
contradicts a previous presidential pronouncement vowing a
thorough audit and potential revision of mining agreements
between the state and private stakeholders. Taking many
observers by surprise, the minister said that contracts would
only be reviewed for compliance, as "Guinea is a state that
signed contracts which carry the force of law between the
signatories." (NOTE: In the days following the announcement,
Embassy has received no information that the junta reversed
this decision. END NOTE.)

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LIBYA DONATES GENERATORS AS KOUYATE RETURNS TO CONAKRY
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13. (S) Libya recently donated two large electrical
generators, each with a 640 KW generating capacity, to the
CNDD, along with the cargo aircraft that was used to
transport them. The generators are reportedly worth $2
million each. Press sources speculated that the generators
would be used to provide power to the outer suburbs of
Conakry. A DATT contact tied the arrival of the generators
to the return of former Prime Minister Lansana Kouayte, who
might claim credit for securing the generators, and use the
resulting boost in his popularity to reenter the political
fray (ref B).

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APPOINTMENTS AND BIO NOTES
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14. (U) Minister of Mines - Mahmoud Thiam. Thiam is a
Guinean expatriate who left Guinea when he was approximately
two years old after his father was detained at the infamous
Camp Boiro prison. Raised in France and Belgium, Thiam later
studied at Cornell. He pursued a career in investment
banking at Merrill Lynch before accepting a position at UBS
in New York, where he was eventually promoted to the rank of
vice president. He is reportedly highly skilled in financial
matters, and apparently obtained his appointment due to his
professional relationship with Prime Minister Kabine Komara.
Thiam has spent almost all of his life outside Guinea. He is
married with two or three children.


15. (C) Head of Mining Funds (Fonds Minier) - Laye Keira.
Keira, a Malinke, is is the half-brother of notorious

CONAKRY 00000076 004.2 OF 004


hardliner and former Minister Secretary General for the
Presidency Alpha Ibrahima Keira. Laye Keira replaced Tidiane
Diallo, a Puehl who worked for many years at the USAID
Mission in Conakry. Keira is reportedly close to former
Finance Miniser Ibrahima Kassory Fofana. (COMMENT: While
officially the Fonds Minier is a public body that supports
geological research and finances the Ministry of Mines thanks
to annual payments of $5 million from CBG, it has in the past
been used as a private slush fund for the Minister of Mines
and other public officials. END COMMENT.)


16. (U) Minister of Pre-University Education - Kaba Rougui
Barry. A Puehl, Barry is a well respected political figure
and one of the most prominent female politicians in Guinea.
Barry became a force in politics at 53 years old when she was
elected mayor of Conakry's Matam district, and was the first
woman to hold a mayorship after the GoG legalized political
parties in 1990. Her reelection in 1996 reportedly irritated
President Conte, who attempted to block her from taking
office. In 2001, Barry joined the opposition Union of
Republican Forces (UFR) party, but only after the GoG passed
a law requiring mayoral candidates to join political parties.
In March 2004, she was arrested and imprisoned for 44 days
after being accused of plotting a coup. After leaving
office, she founded her own humanitarian NGO, and is
perceived as outspoken on the social and political future of
the country. In November 2008, she told the press that she
might run for president. Her nomination replaces the
previous minister of pre-university education, Hadja Aisha
Bah, who had been appointed by the CNDD on 14 January.


17. (SBU) Minister of State Monitoring - Al-Hassan Onipogui.
Onipogui, a Forestier from Macenta, is a former inspector
general for mines (1992-1996) and reportedly very close to
Dadis Camara. In this role, Onipogui will monitor various
states that the government holds in mining companies such as
CBG. Prior to joining the government, Onipogui had planned
to start a mining consultancy after he learned that he had
not been chosen as Minister of Mines. A fawning press
article recently described him as "...one of the new class of
patriotic intellectuals who have integrity and are
incorruptible." He has studied abroad in Canada, France, and
Morocco.

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COMMENT
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18. (C) Outwardly, the military junta appears to be making
good on its promises to "clean up Guinea," but the CNDD's
tactics raise significant human rights concerns. Recent
events suggest that soldiers plan to use the ongoing audits
as justification for harassment, kidnapping, and financial
shakedowns. Recent appointments seem to have come from a
variety of rival factions, supporting previous reports that
the CNDD remains internally divided, with players promoting
individual interests over a common vision for moving the
country forward. END COMMENT.
RASPOLIC