VZCZCXRO9477
PP RUEHLMC
DE RUEHCO #0477/01 1800915
ZNR UUUUU ZZH
P 290915Z JUN 07
FM AMEMBASSY COTONOU
TO RUEHC/SECSTATE WASHDC PRIORITY 9626
INFO RUEHLMC/MILLENIUM CHALLENGE CORP WASHDC
RUEHZK/ECOWAS COLLECTIVE
RUEHFR/AMEMBASSY PARIS 1111

UNCLAS SECTION 01 OF 02 COTONOU 000477 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR AF/W (DBANKS) 
PARIS FOR D'ELIA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KCOR KMCA BN
SUBJECT: BENIN: UPDATE ON EFFORTS BY THE GOVERNMENT OF BENIN AND 
BENINESE CIVIL SOCIETY TO COMBAT CORRUPTION 
 
 
¶1. (SBU) SUMMARY: In conjunction with President Yayi's program to 
fight corruption in the administration and advance good governance 
in the country, the Front of National Anti-Corruption Organizations 
(FONAC) has accused two former Executive Directors of the Benin 
Electric Energy Corporation (SBEE), who are members of the National 
Assembly, as well as several officials of the Benin Water 
corporation (SONEB), of mismanagement and embezzlement of public 
funds. These allegations, which come at the same time that the 
National Assembly is considering an anti-corruption bill, have 
caused a major stir in Beninese political circles. END SUMMARY 
 
FONAC ACCUSES TWO PARLIAMENTARIANS 
---------------------------------- 
 
¶2. (U) On June 20, the Front of National Anti-Corruption 
Organizations (FONAC) held a press conference during which the 
organization's Vice-president and Spokesman, Jean Baptiste Elias, 
accused two former Executive Directors of the Benin Electric Energy 
Corporation (SBEE).  The two officials, Ms. Celestine Adjanohoun and 
Mr. Luc Da Matha Santana, both of whom were elected to the National 
Assembly in the March 2007 legislative elections, are accused of 
having improperly awarded a private procurement contract worth $6 
million (3 million CFA).  The company which received the contract is 
alleged to have received all the money due it under the contract 
without having delivered all of the equipment and services required. 
FONAC said further investigations revealed that this company, in 
collusion with SBEE officials, did not pay taxes on the profit 
earned under the contract to the Benin Internal Revenue Service, 
resulting in a loss of $4.4 million (223 million CFA) to the 
national treasury.  In addition, FONAC alleged that the contract 
violated Benin's Public Procurement Act, which stipulates that the 
maximum amount for private contracts must not exceed $80,000 (40 
million CFA). 
 
¶3. (U) FONAC also accused Ms. Adjanohoun and Mr. Da Matha Santana of 
having ordered a payment to a Cote d'Ivoire-based company that had 
supplied the SBEE with electrical equipment, even though a court 
decision had ruled against this payment because the company had 
refused to give the Beninese intermediary the commission it owed him 
on the deal.  Both Ms. Adjanohoun and Mr. Da Matha Santana have 
publicly denied all allegations, arguing that SBEE awarded the 
concerned contract in accordance with the provisions of the Public 
Procurement Act in force in Benin. 
 
¶4. (U) At the same press conference, Mr.  Elias also made 
allegations against several officials of the Benin Water Corporation 
(SONEB) who are accused of fraudulently transferring $66,000 
(33,000,000 CFA) from SONEB's accounts to the account of a private 
company which did not offer any services to the SONEB. 
 
PRESIDENT YAYI MEETS WITH THE FONAC 
------------------------------------ 
 
¶5. (SBU) In response to FONAC's public accusations, President Yayi 
met on June 21 with key FONAC members to seek more details on the 
cases.  The two corruption cases represent a major challenge for the 
President because both of the accused officials were elected to the 
National Assembly under the umbrella of President Yayi's political 
coalition.  Some commentators considered Yayi's meeting a 
demonstration of his personal interest in these particular cases and 
his commitment to crack down on corruption, but the President's 
office has made no announcement on its attitude toward the cases, or 
if it will take any actions vis a vis the accused.  (NOTE:  The fact 
that Mr. Da Matha Santana and Ms. Celestine Adjanohoun are members 
of the National Assembly makes their cases more complicated, since 
their parliamentary immunity would have to be revoked before any 
legal actions could be taken against them. END NOTE.) 
 
NATIONAL ASSEMBLY EXAMINE ANTI-CORRUPTION BILL 
--------------------------------------------- 
 
¶6. (U) Meanwhile, an anti-corruption bill recently introduced by the 
Government under an emergency procedure intends to incorporate the 
provisions of the 2003 UN Convention against Corruption into Benin's 
legal framework.  Benin's existing anti-corruption legislation 
consists of international conventions, a few provisions of the 
Constitution, the Penal Code, and a wide range of domestic decrees 
against corruption.  However, existing legislation does not provide 
adequate penalties for perpetrators and in any case has rarely been 
enforced.  The proposed bill seeks to correct these deficiencies. 
The Government describes the bill as a comprehensive draft that 
covers issues including money laundering, conflict of interest, and 
public procurement.  Most importantly, it provides for penalties 
ranging from one year imprisonment to a life sentence for 
perpetrators, depending on the seriousness of the offense.  The 
Office for Political Analysis (CAPAN) of the National Assembly, 
 
COTONOU 00000477  002.2 OF 002 
 
 
along with FONAC and other partners, has organized a seminar for the 
deputies to learn more about the issue and to familiarize them with 
the anti-corruption bill. The President of the National Assembly, 
Professor Mathurin Nago, stated the Assembly would examine the bill 
and make its passage a top priority. 
 
¶7. (SBU) COMMENT: The adoption of this bill by the National Assembly 
would be a significant step forward in the fight against corruption. 
The decision to pursue passage of the bill through an emergency 
procedure is a joint decision of the President of the National 
Assembly and the executive branch.  However, the President's 
political will alone is not sufficient to achieve his goal of good 
governance, if judicial branch does not support him by aggressively 
pursuing cases of alleged corruption.  Perceived immunity from 
prosecution has always been at the heart of the problem of 
corruption in Benin. 
 
HOLTZAPPLE