DE RUEHRY #0395/01 1891606
ZNY CCCCC ZZH
R 081606Z JUL 09
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC 3838
INFO RUEHZK/ECOWAS COLLECTIVE
RHEFDIA/DIA WASHINGTON DC
RHMFISS/HQ USAFRICOM STUTTGART GE C O N F I D E N T I A L SECTION 01 OF 02 CONAKRY 000395
E.O. 12958: DECL: 03/16/2019
SUBJECT: DADIS ORDERS POST-MORTEM AUDIT
Classified By: POLOFF BRIANA WARNER FOR REASONS 1.4 (B) AND (D)
1. (SBU) Summary: The CNDD released a communiqu on July 5
detailing plans to begin a comprehensive audit of the last 25
years of governance in Guinea. Habib Hann, Vice President of
the Strategy Bureau in the Office of the President, helped
launch the project in order to investigate past corrupt
practices as well as "deal with" those who damaged Guinea,s
economy. END SUMMARY.
Post-Mortem Witch Hunt
2. (U) The CNDD issued a communiqu on July 5 calling for a
comprehensive audit of governance in Guinea over the past 25
years. According to the communiqu, the audit will
investigate all government ministries, former prime
ministers, mining companies, infrastructure projects, project
finance deals, the petroleum sector, and defunct Air Guinee.
Though focusing on corruption during the Conte regime, the
audit will also look into the practices of the CNDD since the
3. (U) The communiqu also expressed CNDD interest in
soliciting international bids to execute the audit. The
bidding process is to start this week and will end when the
CNDD deems appropriate. While contracts will be open to all
international bidders, the audit commission in consultation
with the Office of the President will determine the winner.
From Wall Street to Camp Alpha Yaya
4. (SBU) EconOff met with Habib Hann, Vice President of the
Strategy Bureau in the Office of the President, to discuss
the CNDD communiqu. Hann, a CNDD sympathizer and friend of
several CNDD leaders, allegedly returned to Guinea after the
coup to "keep the country from going sideways." As a former
Vice President at Goldman Sachs and Assistant Vice President
at JPMorgan in New York City, Hann was well versed on U.S.
policy toward Guinea as well as the complicated process that
goes into international contract bidding and audits.
5. (SBU) Hann told EconOff that the CNDD would like to hold
this audit as a way to expose all of the wrongdoings of the
former regime. He thinks that it is important that Guineans
see how poorly the former government was managed. When asked
why it was useful to audit a government after they have lost
power, Hann said that the CNDD owes it to the Guinean people
to tell them "the truth" about what happened under Conte. He
believes that the audit section that deals with the CNDD will
also reveal to Guineans that the junta government is serious
about combating corruption and has the will to improve
6. (SBU) He suggested that the findings of the audit would
be used to "clean up" the perpetrators of corruption from the
Conte regime. He also hopes that the audit will investigate
what he believes to be improper commercial concessions made
to mining companies. Pointing to Rusal, a Russian metal
mining company operating in Guinea, Hann argued that the
despite the Ernst & Young contract valuation of $250 million
USD, the Guinean government demanded $15 million USD in
concessions. He said many similar contracts were improper and
need to be revisited under this audit in order to uncover
such discrepancies. With a detailed review, he believes, the
Guinean Government will be justified in revoking several
commercial contracts in the mining sector.
7. (SBU) Hann ironically went on to argue that he hopes that
this audit commission will instill confidence in
international investors that the Guinean government no longer
engages in corruption or favoritism. It will also prove to
them, he thinks, that the Government of Guinea is focused on
the mining sector and hopes to make the investment process
easier and less corrupt to sustain operations.
Independent Auditors Chosen by the Junta Government
8. (SBU) When EconOff asked if the audit could be used
against CNDD adversaries, Hann said that the independent
nature of the audit would eliminate any such political
involvement. According to Hann, the international bids will
be chosen by an independent audit commission. Though CNDD
CONAKRY 00000395 002 OF 002
leader Moussa Dadis Camara will have final say over who is
awarded the contract, Hann does not see this as an
insurmountable obstacle to independence.
9. (SBU) Hann had few answers about the intended timeline
for the audit commission and few concrete details on how the
CNDD plans to execute this massive project. He said that they
cannot develop any notion of a time line until they get the
professional advice of the international bidders.
10. (C) Dadis and the CNDD used the legacy of corruption
under Conte as a means to garner popular support when they
came into power. As the CNDD becomes more unpopular, they are
falling back on populist actions to regain power and distract
from elections. By arresting former political figures and
revoking commercial contracts, Dadis may hope to be seen as a
leader battling corruption. However, it is very possible that
this audit will be used to harrass and apprehend political
adversaries from the former regime and anyone else deemed a
threat to the CNDD.
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