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DE RUEHOS #0364/01 2600733
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O 160733Z SEP 08
FM AMCONSUL LAGOS
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0164
INFO RUEHZK/ECOWAS COLLECTIVE
RUFOADA/JAC MOLESWORTH AFB UK
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEWMFD/HQ USAFRICOM STUTTGART GE

UNCLAS SECTION 01 OF 02 LAGOS 000364 
 
SENSITIVE BUT UNCLASSIFIED - HANDLE ACCORDINGLY 
SIPDIS 
 
DOE FOR GPERSON,CHAYLOCK 
TREASURY FOR DFIELDS, AIERONIMO, RHALL 
DOC FOR 3317/ITA/OA/KBURRESS 
DOC FOR 3130/USFC/OIO/ANESA/DHARRIS 
STATE PASS USTR FOR USTR AGAMA 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
 
E.O. 12958: N/A 
TAGS: PGOV PREL NI
SUBJECT: NIGERIA: BAYELSA STATE MOVES ON GOVERNMENT 
TRANSPARENCY, SUSTAINABLE DEVELOPMENT 
 
REF: A. LAGOS 328 
     ¶B. ABUJA 1600 
 
¶1. (SBU) Summary: Dimieri Von Kemedi, Head of the Due Process 
and eGovernance Bureau for Bayelsa State told Poloffs in 
conversations on June 11, July 12 and August 1 that during 
Governor Timipre Sylva's (People's Democratic Party) first 
year in office his Bureau has taken concrete steps to ensure 
transparency and promote sustainable development. 
Accomplishments include establishing a government procurement 
office with trained personnel; eGovernance functions for 
budget, procurement, human resources and project management; 
a State Strategy for Sustainable Development, and a Budget 
Expenditure and Transparency Board which includes members of 
civil society. In addition, according to Kemedi, Bayelsa 
state plans to seek a Standard and Poors rating, upgrade 
state accounting standards, and ensure reliable electrical 
power in order to attract international investment. End 
Summary. 
 
Progress toward Transparency and Accountability 
--------------------------------------------- -- 
¶2. (SBU) The Government Procurement office, a unit of the Due 
Process and eGovernance Bureau which Kemedi heads, is now 
staffed and operating.  Earlier in the year, Kemedi arranged 
for several top staff members to undergo in-depth training in 
government procurement processes in the U.K.  The eGovernance 
office of the Bureau is also well underway, Kemedi said. The 
eGovernance function will allow greater management of 
government transactions and will allow officials to see the 
status of funds in various accounts at any given time.  In 
February, Bayelsa requested bids for eGovernance 
infrastructure, hardware and installation, network 
engineering, and applications including e-procurement, human 
resources, and project management.  Experts from Australia 
and the U.K. evaluated the bids, and a professional system 
with roots in Nigeria costing Naira 900 million was selected. 
Kemedi stressed that this was a Nigerian solution, not 
something imposed by the World Bank or foreign donors. 
 
¶3. (SBU) In addition, Bayelsa is setting up a Budget 
Expenditure Transparency Board which will enable citizens to 
become more involved in monitoring government revenue and 
spending. The Budget Transparency Board will oversee the 
expenditures of the state and take note of and discuss areas 
where there are weaknesses.  Training and capacity building 
in budget monitoring for NGOs will also be conducted, he 
said. 
 
Development Plan Includes Local Governments 
------------------------------------------- 
 
¶4. (SBU) The second major accomplishment is the preparation 
and publication of the Bayelsa State Strategy for Sustainable 
Development, which was subsequently circulated for comment. 
On June 11, Kemedi told Pol-Econ Chief that he had been 
working with an international foundation that provided help 
with initial concepts, and drafts of some elements of the 
overall strategy, which will include the local government 
area level, he said.  The draft will be presented at a public 
meeting for feedback.  Kemedi hopes to hire an expert 
economist who will help guide the Bayelsa Internal Revenue 
Service (BIRS) and strengthen policy formulation and 
execution, especially with respect to expenditures. 
 
Bayelsa to Seek Standard and Poors Rating 
----------------------------------------- 
 
¶5. (SBU) The State consulted with HSBC about raising capital 
to undertake major development projects such as an airport, a 
deepwater supply base, similar to the Accor base in Port 
Harcourt, and a deepwater port.  According to Kemedi, HSBC 
advised the State that certain prerequisites must be 
fulfilled. Among these is a Standard and Poors or Fitch 
rating for the State, which the State is now seeking. In 
 
LAGOS 00000364  002 OF 002 
 
 
addition, Kemedi wants to ensure that the State's accounting 
standards reach an international level, because he believes 
that this will also favorably influence investors. 
 
Work Under Way to Solve Power Problem 
------------------------------------- 
 
¶6. (SBU) Kemedi also told Poloffs August 1 that the State was 
well on the way to increasing the supply of electric power. 
To increase output, the State has ordered a gas turbine. In 
addition, the State, which has always had its own 
transmission network, is installing new equipment to upgrade 
the existing system.  Kemedi believes that when everything is 
finished (no completion date given), Bayelsa will have 
sufficient power to entice companies thinking of leaving 
Nigeria to instead relocate to Bayelsa. 
 
¶7. (SBU) Comment: Kemedi, a long standing contact of the 
Mission, reportedly was recruited by Governor Sylva based on 
his work leading the "Our Niger Delta" NGO. Kemedi's work to 
date appears to have put in place a valid environment for 
improving transparency and accountability in Bayelsa State 
government. 
BLAIR