VZCZCXRO9206
OO RUEHMA
DE RUEHMA #0047/01 1401534
ZNR UUUUU ZZH
O 201534Z MAY 09
FM AMEMBASSY MALABO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0497
INFO RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEHMD/AMEMBASSY MADRID IMMEDIATE 0122
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEHMA/AMEMBASSY MALABO 0568

UNCLAS SECTION 01 OF 02 MALABO 000047 
 
SENSITIVE 
SIPDIS 
 
EEB FOR S. GALLOGLY 
 
E.O. 12958: N/A 
TAGS: ECON EPET ENRG KCOR EK PGOV PINR
SUBJECT: REPORTS OF DEATH OF EITI IN EQUATORIAL GUINEA GREATLY 
EXAGGERATED 
 
¶1. (U) This message contains an action request.  Please see para 
13 below 
 
 
 
¶2.  (SBU) On May 19, we met with Extractive Industries 
Transparency Initiative (EITI) Coordinator (and Vice Minister of 
Economy) Francesca Tatchoup to discuss the state of play.  From 
her perspective things are generally on track but she continues 
to struggle with World Bank (WB) Technical Assistance (TA) 
provided in the form of two international consultants.  Related 
issues surround civil society's participation in the process. 
Despite time pressures she remains optimistic of Equatorial 
Guinea's drive to gain EITI membership by 2010. 
 
 
 
¶3.  (SBU) The week of May 4 saw a great deal of EITI-related 
activity.  Industry representatives made presentations to EG 
civil society group, the multi-stakeholder group met to discuss 
terms-of-reference draft for the reconciler, and scope of EITI 
reporting.  A meeting of industry, government and civil society 
also met to discuss the Terms of Reference (TOR).  On Thursday 
May 7, the Coordinator and the primary WB consultant met with 
the Ministerial Committee (comprised of the Ministers of 
Finance, Energy and Planning).  This was the first meeting of 
the WB consultant with this committee.  Tatchoup indicated that 
her advice to the consultant to calibrate her presentation for 
the ministers' level went unheeded, with the consultant 
approaching ministers as though she were still dealing with EG's 
poorly developed and unsophisticated civil society. 
 
 
 
¶4.  (SBU) According to the Coordinator, the ministers became 
frustrated by the technical-level presentation, asserted control 
and began to probe the WB consultant about possible connections 
between EITI (chaired by Peter Eigen) and a recent French court 
case brought against EG's president by Transparency 
International, an NGO originally founded by the same Mr. Eigen. 
Ultimately, the WB consultant, who the coordinator suspects has 
little experience dealing at the ministerial level, was able to 
convey a trimmed version of the presentation to the Committee. 
One of the results of the difficult meeting was a decision of 
the group to report out to the Council of Ministers, i.e., the 
Prime Minister and his entire cabinet or 26 members. 
 
 
 
¶5.  (SBU) WB consultants apparently assumed this was a death 
sentence for EITI in EG, and reported such back to headquarters. 
 However, on Tuesday, May 12 the Coordinator and the EITI 
Ministerial Committee presented its report to the Council, which 
was attended by President Obiang.  Discussion of the EITI/TI 
connection continued in this meeting.  In remarks to the group, 
Obiang is reported to have suggested that the ministers look 
beyond that issue, that the two things were separate, and that 
EITI should be pursued for its own merits and as a matter of 
EG's own interests.  Portions of this meeting were carried on 
national TV.  The Council concluded its meeting with instruction 
to Coordinator/Ministerial Committee to proceed with its work. 
 
 
 
Nuts and Bolts 
 
----------------- 
 
¶6.  (SBU) Both industry and the government state they are 
prepared to move forward, though minor issues remain.  These 
include the question of use of aggregated versus disaggregated 
data, reporting period and confidentiality of source 
documentation.  Once these issues are clarified, the TOR and 
hiring of a reconciler will take place. 
 
 
 
¶7.  (SBU) The problem of the Civil Society (CS) stake-holder 
element is likely to remain.  One problem is that of EG 
government support for CS's participation.  We were told the 
government understood and expected that others -- such as the 
EU, WB and/or INGO's such as Revenue Watch -- would support CS 
participation in the process.  That has not been the case.  CS 
complains at each opportunity (included to the U.S. Embassy) 
that they are not receiving subsidies for their work in the 
process, and threaten to withdraw if funds are not available. 
 
MALABO 00000047  002 OF 002 
 
 
The EG government, aware of its reputation for co-opting 
opponents, has provided modest support but is reluctant to 
provide such subsidies out of fear it would be misconstrued. 
The WB, meanwhile, is pushing for such subsidies despite the 
peculiar optic it would present. 
 
 
 
¶8.  (SBU) Another issue is the divisive nature of CS itself and 
a drawbridge mentality among its members.  The WB has encouraged 
a few local, non-EITI-affiliated NGOs to participate in meetings 
despite their original reluctance to be included in the process. 
 One NGO in particular seems to have attracted the support of 
the primary WB consultant, who regularly invites its director to 
meetings.  Other CS members object to this "outsider."  The WB 
consultant has also pushed for changes in the self-elected 
leadership structure of the CS group, another point of friction 
within the group. 
 
 
 
¶9.  (SBU) The EU plans to conduct two major seminars for CS in 
coming weeks -- one on the validation process and another on 
interpretation of the results once available.  The local office 
tells us that funds are finally available to support CS 
training, which will relieve part of the subsidy issue. 
However, local representative tell us the EU will not provide 
support (i.e., travel and per diem) for participation in 
official meetings.  Travel costs to/from Malabo (island) and 
Bata (continent) are not insignificant. 
 
 
 
¶10.  (SBU) The draft TOR has been updated and ready for review. 
The next key step is to assemble the National Committee (i.e., 
the multi-stakeholder group of government, CS and industry) to 
approve the TOR and hire a Reconciler.  The Coordinator hopes to 
complete this activity by the end of May. 
 
 
 
¶11. (SBU) COMMENT:  CS was always going to be the most difficult 
part of the EITI process in EG.  To assemble the 15-member group 
at all in EG's weakly developed CS sector required cobbling 
together an odd mix of religious groups, political parties and a 
handful of willing local NGOs.  Now that the process is getting 
traction, and the CS sector is developing further, there is 
opportunity to augment the group down-range.  Trying to do so 
now, which may be what the WB (and even the EU) would like to 
do, is likely to cause confusion that would halt the process. 
 
 
 
¶12.  (SBU) COMMENT CONTINUED: It might also be useful to signal 
to the GREG whether we think it prudent to subsidize CS in this 
process.  Doing so would give them cover from critics who might 
protest later.   International TA that is more comfortable and 
affective in dealing at the ministerial level may also be 
useful, especially as we come to a necessary final decision by 
the Cabinet/Council of Ministers.  The WB appears not to fully 
appreciate the consensus-based decision process within the EG 
government. 
 
 
 
¶13.  (SBU) ACTION REQUEST:  Complications with the EITI process 
here caused Coordinator Tatchoup to miss a recent opportunity to 
meet with EEB EITI experts on the margins of the recent EITI 
International Secretariat and Board meeting with National 
Coordinators.  However, she would still like to do so, 
preferably during the July timeframe and has request the embassy 
facilitate such a meeting.  Request Department guidance 
regarding EEB availability for such a meeting. 
SMITH