Mysterious Mining Monies: Opposition, Media Open

UNCLAS NIAMEY 000552 DEPT FOR AF/W, AF/RSA AND AF/PDPA LISENBY PLS PASS TO USAID FOR AFR/W ACCRA ALSO FOR USAID/WA PARIS FOR AFRICA WATCHER SIPDIS SENSITIVE E.O. 12958: N/A TAGS: PGOV EMIN KCRP SOCI NG SUBJECT: Mysterious Mining Monies: Opposition, Media Open Pandora's Box Involving President's Family Ref: a) Niamey 00527, b) Niamey 00521, c) Niamey 00511, Niamey 00378 ¶1. (SBU) Summary: Niger's independent newspapers this week carried the story of a multi-million dollar mining deal involving President Tandja's son. Long a concern of the political opposition and civil society, the issue of transparency and mining concessions again surfaces during the week preceding the August 4 constitutional referendum. This story, if verified, would confirm previous opposition allegations of corruption and provide further ammunition in their attempts to block President Tandja's plans to remain in power during the final days in the run up to the referendum. End summary. Letters Reveal $5m Concession for Pres. Tandja's Son -------------- -------------- ¶2. (U) On July 27, several newspapers, including "Le Canard Dechaine," "Opinions," and "Le Democrate" featured a copy of a purported memorandum of agreement between Multimedia Communication SARL and the son of the President, Hadia Toulaye Tandja on the one hand, and Africa Resources (an Australian mineral firm) on the other hand, detailing the creation of a company called "Niger Uranium Ventures SA." In this transaction, signed on January 23, 2008, the Manager of Multimedia Communications SARL, a reported political and business crony of the president's family, and H.T. Tandja received a commission of USD 5 million plus 25 percent of the new company's shares. ¶3. (U) Independent media also released a second agreement signed by the same parties on the same day allocating the cash and shares received in African Uranium, a local company established to hold the uranium exploration rights to the "Terzemasour 3 Permit." UK-listed Brinkley Mining was the foreign investor in African Uranium through wholly owned BMP7. According to public information on the Brinkley website: "In accordance with the terms of a put option held by the Company's Nigerien partner, BMP7 acquired in July 2008 the remaining 30 per cent of African Uranium for a price of US$1.75 million." (Note: Use of such forward put options on shares held in exploration companies could provide an ongoing source of illicit income to Nigerien "partners" which could be at risk if the dealings were reviewed. End note.) Corruption in Mining Sector a Key Opposition Complaint -------------- -------------- ¶4. (U) On July 18, during the fifth convention of the Nigerian Party for Democracy and Socialism (PNDS),Niger's main opposition party, PNDS leader Mahamadou Issoufou alleged that the ruling class is involved in corruption in the mining sector (ref A). He said, "Corruption has plagued the uranium sector, where the allocation of exploration permits was used by some well-identified individuals who pocketed well-known commissions...the marketing of uranium constitutes further evidence of the business fever that has caught the regime." Reacting to these allegations, President Tandja stated in Hausa during a recent press conference that he was "clean," and dismissed the opposition leader's words as "mere political accusations." Comment: -------------- ¶5. (SBU) Reportedly President Tandja was resistant to the National Assembly's move in January to create a commission to investigate the allocation of mining permits and management of revenues deriving from mineral concessions. Some analysts speculate President Tandja feared deputies intended to investigate his family and friends who were beneficiaries of such permits (ref D). These concerns may have contributed to his decision to dissolve the National Assembly on May 26 (ref D). ¶6. (SBU) The political opposition and private media apparently intend to score important points in their fight against President Tandja's referendum plans in the few remaining days before the referendum on August 4. Some suggest other political scandals are yet to be revealed. End comment. ALLEN