UNCLAS COTONOU 000254

SIPDIS

DEPT FOR AF/W ACOOK
LONDON FOR PETER LORD
PARIS FOR BKANEDA

E.O. 12958: N/A
TAGS: PGOV PREL PINR BN
SUBJECT: BENIN: PRESIDENT YAYI FIRES MINISTER OF FINANCE AND MAKES
MINOR CABINET CHANGE

REFERENCE: A) 08 COTONOU 750 AND PREVIOUS; B) COTONOU 246


1. SUMMARY: On June 9, President Yayi dismissed his Minister of
Economy and Finance, Soule Mana Lawani, because he had issued a 2008
ministerial decree granting incentives bonuses to health workers,
without getting the prior approval of the government. On June 12,
Yayi appointed by decree Idriss Daouda, a former National Director
of the Central Bank of West African States(BCEAO) in Cotonou, as the
new Minister of Economy and Finance. He switched portfolios between
the Ministry of Agriculture, Animal Husbandry and Fishing, Roger
Dovonou, and the Ministry of Industry, Gregoire Akofodji. Besides,
Yayi increased responsibility for the Minister of State, in charge
of Economic Forecasting, Development and Public Action, Irene
Koupaki, by tasking him with coordinating governmental action. While
Lawani's dismissal was linked to a professional blunder, changes in
the other three ministerial portfolios reflected a rather minor
technical reshuffle. END SUMMARY.



2. Following local press news that President Yayi fired his Minister
of Finance and Economy, Soule Mana Lawani, on June 8, the Council of
Ministers confirmed the dismissal on June 9. According to the
Council of Ministers' report, the President dismissed Lawani just
because he issued in 2008, together with the former Minister of
Health Kessile Tchalla (He left Yayi's Cabinet in the 2008
reshuffle), a ministerial decree to entitle incentive bonuses to
public health workers without the prior approval of the Council of
Ministers, a decree that appeared to be inconsistent with a 1986 law
governing civil servant status in Benin. Additionally, the
non-payment of the incentive bonuses to health workers prompted them
into protest marches and slowdown strikes that had paralyzed the
health sector for months (Ref B) President Yayi appointed Koupaki as
the acting Ministry of Finance and Economy. On June 14, the Minister
of Justice and Spokesman of the Government, Victor Topanou said, on
TV, that the Ministry of Finance and Economy had committed a serious
professional blunder by issuing the decree since its application
would incur about 16 billons CFA expense, roughly USD 32, Million
for the National Treasury, a significant amount which the government
can hardly pay because of the budget constraints it is facing.


3. On June 12, President Yayi issued Presidential Decree No 2009-260
to confirm Lawani's departure from his cabinet and to bring changes
to his cabinet. He appointed Idriss Daouda as the new minister of
Finance and Economy to replace Lawani. BEGIN BIO NOTE: Daouda served
in 2006 as Governor Alternate on the IMF Boards of Governors. From
2006 to 2007 he was the National Director for Central Bank of West
African States (BCEAO) in Cotonou. He also worked at the BCEAO
Headquarters in Dakar, Senegal, where he made acquaintance with Yayi
Boni who was also working at the bank. He retired in 2007. Post will
provide further details on Daouda as they are available. END NOTE.

The Minister of State, in charge of Economic Forecasting,
Development and Public Action, Irene Koupaki, has become the
Minister of State, in charge of Economic Forecasting, Development,
Evaluation of Public Policies and Coordination of governmental
Action. The Minister of Agriculture, Animal Husbandry and Fishing,
Roger Dovonou, has taken over the portfolio of Industry while
Gregoire Akofodji, the Minister of Industry has been appointed
Minister of Agriculture, Animal Husbandry and Fishing.


4. Change in the denomination of Koupaki's ministry implies an
increase in responsibility since he will now be coordinating the
other 29 remaining ministries, a kind of "Super Minister." Though
President Yayi officially reiterated his confidence in him by
increasing his portfolio, everyone contends that Koupaki has played
a leading role in his cabinet since Yayi appointed him in 2006.


5. In an effort to implement the incriminated decree and satisfy
health workers' demands, the government decided to take exceptional
measures (since this unexpected expense is not covered by the 2009
budget) to secure payment to workers effective June 9, 2009. Payment
will be spread over two years and paid by installments, representing
respectively 50, 25, and 25 per cent of the incentive bonuses owed
to workers.


6. COMMENT: Some observers say that President Yayi might have well
authorized the two Ministers to issue the Ministerial Decree in
2008, when health workers' protests reached a climax, a piece of
information difficult to check. Nevertheless, the dismissal of
Lawani demonstrates that Yayi is still committed to implementing the
Good Governance Charter he adopted in 2006, and which consists of
ten cardinal principles including responsibility, transparency and
accountability. END COMMENT.

RAWLINGS