VZCZCXYZ0003
PP RUEHWEB

DE RUEHAN #0778 3290944
ZNR UUUUU ZZH
P 240944Z NOV 08
FM AMEMBASSY ANTANANARIVO
TO SECSTATE WASHDC PRIORITY 1797

UNCLAS ANTANANARIVO 000778 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR AF/FO AND AF/E 
DEPT FOR EB 
 
E.O. 12958: N/A 
TAGS: ECON EFIN PGOV CN
SUBJECT: 
SUBJECT:  Comoros Political Fight Puts IMF Deal In Jeopardy 
 
¶1. (SBU) SUMMARY:  The Union of the Comoros (GOC) has taken steps to 
obtain approval December 15 for emergency IMF assistance, but 
opposition leaders of Grande Comore and Moheli are not willing to 
cooperate for the good of the country.  END SUMMARY. 
 
¶2. (SBU) Foreign Minister Jaffar told the DCM November 20 the GOC 
had taken several steps to qualify for IMF Emergency Post Conflict 
Assistance (EPCA).  On a recent tour of the Gulf, they secured 
pledges from Kuwait and Saudi Arabia, as well as interest from 
others, to raise the USD 20 million required to pay down domestic 
arrears.  Union salaries and new hires have been frozen.  In the 
near future, the number of Ministries is to be reduced from 15 to 
eight.  All of this, FM Jaffar concluded, to demonstrate to the IMF 
that the Comoros is serious about qualifying for the EPCA and 
eventually getting into a Program.  According to FM Jaffar, the IMF 
Board will meet to discuss the Comoros December 15 - he asked the 
United States vote in favor of the EPCA. 
 
¶3.  The island government of Anjouan, led by pro-Sambi "president" 
Toybou, has followed suit, freezing spending.  In contrast, Grande 
Comore island "president" Abdouwahabi reshuffled his cabinet and 
expanded the number of ministers.  President Sambi invited all three 
island executives to Moroni for talks November 19; in particular to 
talk about steps to qualify for the EPCA.  Both Grande Comore and 
Moheli refused. 
 
¶4.  Further complicating matters, on top of recent talks of 
referendum (REFTEL), President Sambi on November 8 replaced the 
Director Generals of several state-owned enterprises and agencies in 
Moheli (hospital, utility, petroleum, and customs).  He also removed 
the Gendarmes serving as Moheli island "president" Ali Said's body 
guards and replaced them with a Union presidency security 
detachment.  President Sambi's bold move alienated not only Ali 
Said, but also his opposition allies the Grande Comore island 
president and National Assembly President.  By unilaterally 
replacing these directors, Sambi asserted Union authority over state 
enterprises.  This has long been a key point of contention in the 
"competencies" (federal authorities) issue. 
 
¶5.  COMMENT:  The GOC is virtually bankrupt, eight months behind on 
salaries and barely able to pay fuel imports (and that only with 
help from Arab friends).  Debt payments are a tremendous budget 
burden, thus the GOC's efforts to meet IMF requirements for the 
EPCA.  The GOC tells us the six-month EPCA would lead to a Poverty 
Reduction and Growth Facility under which, with good performance, 
the Comoros could finally qualify for Heavily Indebted Poor 
Countries (HIPC) and Multilateral Debt Relief Initiative (MDRI) debt 
forgiveness.  Other donors, notably France and UNDP, are concerned 
the GOC may not qualify for the EPCA, thus jeopardizing all 
international development efforts in the Comoros.  END COMMENT. 
 
MARQUARDT