VZCZCXRO6488
PP RUEHMA RUEHPA
DE RUEHCO #0931/01 3411002
ZNR UUUUU ZZH
P 071002Z DEC 07
FM AMEMBASSY COTONOU
TO RUEHC/SECSTATE WASHDC PRIORITY 0038
INFO RUEHLMC/MILLENIUM CHALLENGE CORP WASHDC
RUEHZK/ECOWAS COLLECTIVE
RUEHFR/AMEMBASSY PARIS 1206

UNCLAS SECTION 01 OF 02 COTONOU 000931 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR AF/W (DBANKS) 
PARIS FOR D'ELIA 
 
E.O. 12958: N/A 
TAGS: PGOV KCOR KMCA BN
SUBJECT: STATE AUDIT OFFICE SPEARHEADS FIGHT AGAINST CORRUPTION 
 
REF: (A) COTONOU 888 (B) COTONOU 512 (C) COTONOU 477 
 
COTONOU 00000931  001.2 OF 002 
 
 
¶1. (U) SUMMARY: The State Audit Office or "Inspection General 
d'Etat" (IGE) recently assumed a higher profile with investigations 
of Benin's state electricity company (Ref A) and the former state 
fuel company. On December 4, PolOff and the Political Assistant met 
with Jacques Alidou Kousse, the State Auditor General, and his staff 
to learn more about the IGE's role in fighting corruption.  Kousse 
and his colleagues briefed Post's team on the efforts the IGE has 
made in the fight against corruption in spite of its resource 
constraints. PolOff reiterated the importance the USG placed on 
fighting corruption. 
 
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THE IGE AS A PERSONAL INITIATIVE OF PRESIDENT YAYI 
--------------------------------------------- ----- 
 
¶2. (U) The IGE began its life through a decree issued by President 
Yayi in July 2006.  It took the place of Office for the Moralization 
of Public Life (Cellule de Moralisation de la Vie Publique) which 
was established by the government of former President Mathieu 
Kerekou, and widely known to be ineffective. The IGE, which operates 
autonomously under the supervision of President Yayi, is tasked with 
controlling and auditing all state companies and services, local 
government agencies, national public agencies with a public service 
mandate and public-funded companies to ensure that they comply with 
the laws that govern their financial management.  When the IGE 
discovers serious misconduct during one of its investigations it 
passes the results to the GOB's Council of Ministers (the equivalent 
of the USG Cabinet) for further action. 
 
-------------------------- 
THE IGE FUNCTIONS WELL ... 
-------------------------- 
 
¶3. (U) Mr. Alidou said that the IGE is composed of 10 seasoned 
auditors, 6 auditor assistants and 4 judicial police officers. 
According to Alidou, each of his auditors is a well-trained expert 
in the field. He underlined that IGE's auditors fully comply with 
international standards for auditing public bodies and follow strict 
in-house guidelines for performing their tasks.  Alidou explained 
that the IGE has, since its inception, mostly pursued cases which 
have been passed to it by President Yayi for investigation.  He 
stated that the IGE's actions in 2008 will be governed by an action 
plan concentrating on auditing the GOB's public procurement 
function. 
 
4.(U) The IGE's investigations continue to bear fruit as they 
uncover past corruption in Benin's publicly owned enterprises. 
Alidou stated that in the recent investigation of the Benin Electric 
Energy Corporation (SBEE), the state-owned electric company, the IGE 
discovered evidence of over billing and the creation of false 
companies (Ref A).  The IGE also investigated SONACOP, the partially 
privatized state fuel company, and discovered embezzlement including 
under billing with associated kickbacks and "off the books" payments 
to company officers. 
 
------------------------- 
...WITH A FEW CONSTRAINTS 
------------------------- 
 
¶5. (U) Alidou expressed the need for the IGE to acquire a software 
program which would improve the IGE's auditing capacity and the 
speed at which it could conduct audits. The IGE could use more 
personnel as well to accomplish its investigations.  In addition to 
the investigations the IGE performs it is also tasked with drafting 
the annual action plans for the IGF (Financial Audit Office) and the 
IGSEP (Civil Service Audit Office.  Alidou underscored that all 
three audit offices need to increase their collaboration.  Alidou 
asked for USG support for the IGE's work. 
 
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COMMENT 
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¶6. (SBU) Comment: The IGE plays a prominent role in President Yayi's 
anti-corruption crusade.  Its work, while well done, is hampered by 
a lack of resources in both human and technical terms.  Part of the 
$18M Access to Justice project component of the USG's MCC program 
will address some of the IGE's institutional constraints.  The 
activities include training new and existing personnel, reinforcing 
the IGE's ability to supervise the courts, advise court staff, and 
identify unethical behavior; and developing training materials that 
will strengthen the IGE overall.  However, additional USG support 
for the IGE would be beneficial to ensuring that public corruption 
decreases with a consequent support for democratic governance.  The 
GOB needs to improve the link between the IGE's investigations and 
 
COTONOU 00000931  002.2 OF 002 
 
 
criminal prosecutions of the corrupt officials exposed by the IGE to 
effectively illustrate the end of impunity in Benin. End Comment. 
 
BROWN