UNCLAS SECTION 01 OF 02 COTONOU 000341

SIPDIS

DEPT FOR AF/E JKNIGHT; AF/W ACOOK;
LONDON FOR PETER LORD
PARIS FOR BKANEDA

E.O. 12958: N/A
TAGS: PGOV PREL BN
SUBJECT: BENIN NATIONAL DAY: PRESIDENT APOLOGIZES PROMISING TO FIGHT
CORRUPTION

REF: (A) COTONOU 310 (B) COTONOU 124; (C) COTONOU 101;
(D) COTONOU 44; (E) 08 COTONOU 802; (F) 08 COTONOU 657;
(G) 08 COTONOU 146


1. SUMMARY: In his National Day speech on August 1, 2009, President
Yayi explained his measures to strengthen democracy and foster
economic progress, including constitutional review, reinforcement of
constitution-based institutions, the reorganization of the
multi-party system, and the implementation of electoral and
administrative reforms (Ref D). Yayi said human resources, economic
potential, and infrastructure developments would help mitigate the
effect of the global financial crisis on Benin. He pledged to combat
corruption by ending impunity. In a subsequent televised interview,
the President spoke about the political and economic challenges
facing Benin. He blamed former Minister of Finance and Economy,
Soule Mana Lawani, for CEN-SAD related corruption, denied any
personal involvement, but accepted moral responsibility for it (Ref
A). Many felt President Yayi showed humility and willingness to
engage in dialogue, while reiterating his commitment to fighting
corruption. END SUMMARY.


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STRENGHTENING DEMOCRATIC GOVERNANCE
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2. On the 49th anniversary of Benin's independence on August 1,
President Yayi reiterated his commitment to preserving democratic
and economic gains made since Benin embraced democracy in 1990. He
added that his government worked towards improving existing and
creating new democratic institutions through constitutional review
(Ref G). This includes the appointment of members to the High Court
of Justice, the Economic and Social Council, and the High Authority
for Media and Communication. Yayi also mentioned the recent creation
of a Mediator of the Republic, a body charged with resolving
conflicts that oppose the administration and citizens. Yayi cited
several reforms and objectives, like creating the Computerized Voter
Registry (LEPI) (Ref E), restructuring the National Autonomous
Electoral Commission (CENA), administrative reform, and
implementation of the Opposition Act (Ref C).


3. According to the president, the constitution-based multiparty
system, as implemented by politicians, disrupts the functioning of
democracy. Ben

in has hundreds of political parties without a
political platform. The majority of these parties fail to support
democratic governance; very few field candidates in legislative
elections and are represented in the National Assembly. Yayi pledged
to reform the current multi-party system to allow political parties
to play a more efficient role.

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TACKLING ECONOMIC CRISIS
--------------


4. President Yayi emphasized the global financial crisis as a
challenge to Benin's economic performance. He underscored the
effects of the shrinking global market, the fall in prices of
primary products, and the decrease in direct foreign investment and
aid. Yayi included that the depreciation of Nigeria's currency (the
Naira) caused by a decrease in oil production reduced Nigerian
demand for Beninese goods and trans-shipment services. To address
these challenges, Yayi proposed that policies focus on the
development of human resources, infrastructure, and economic
potential (Ref D). He announced the creation of a joint committee
focused on mitigating the mid and long-term impact of the financial
crisis in Benin. He discussed the need for the GOB to set realistic
prices for government supplied commodities like water and
electricity, after a failed attempt to contain price inflation
through subsidies. The GOB subsequently had to increase water and
electricity prices. Yayi stressed efforts to support the private
sector and also encouraged public-private relations.

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COMBATING CORRUPTION
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5. President Yayi advocated for good governance, highlighting the
importance of transparency and accountability in the management of
state funds. He pledged to improve good governance and end impunity.
During the press interview, Yayi denounced former Minister of
Finance and Economy, Soule Lawani in connection with the CEN-SAD
high-profile corruption case (Ref A). Yayi explained that he
personally ordered an investigation by the State Audit Office (IGE).
He decided to publish the investigation findings, denying
allegations that international partners had urged him to do so. Yayi
admitted he was surprised and disappointed by Lawani's involvement,

COTONOU 00000341 002 OF 002


and confirmed Lawani had failed to conform to public contract
regulations. Yayi added that an Independent Investigative Commission
has been established to pursue further investigations.


6. Because a member of his cabinet was implicated, President Yayi
accepted moral responsibility for the CEN-SAD corruption case.
However, he denied involvement in any alleged misappropriations of
state funds, and confessed the CEN-SAD case shocked and disgraced
him. Yayi formally apologized to the Beninese public stating that
political haste at times leads to poor decision making.

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COMMENT
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7. President Yayi's interview generally received positive reactions.
Politicians feel he showed great humility and frankness. The public
hailed him for his open-mindedness and for his political courage as
he addressed "thorny" issues. Yayi is the first Beninese president
to publicly make frank statements on a high-profile case in which
members of his cabinet are allegedly involved. Very few observers
believe the president's speech and interview are just
electioneering. An analysis of the content of the August 1st speech
and interview reveals overall consistency with Yayi's stated
political agenda.

BOUSTANI