VZCZCXRO7262
RR RUEHMA RUEHPA
DE RUEHMV #0090/01 0281804
ZNR UUUUU ZZH
R 281804Z JAN 09
FM AMEMBASSY MONROVIA
TO RUEHC/SECSTATE WASHDC 0732
INFO RUEHZK/ECOWAS COLLECTIVE

UNCLAS SECTION 01 OF 03 MONROVIA 000090 
 
SIPDIS 
 
DEPT FOR AF/W AND CA/OCS/CI/ADOPTIONS 
 
E.O.12958: N/A 
TAGS: PGOV PREL EAID EINV KCRM CACS LI
SUBJECT: LIBERIA: PRESIDENT CALLS FOR CONTINUED REFORM IN THIRD 
STATE OF THE NATION ADDRESS 
 
¶1. (U) SUMMARY.  In her third State of the Nation Address before a 
joint session of the National Legislature January 26, President 
Sirleaf summarized the achievements of her government in 2008 and 
called for Liberia to "sustain this progress" in 2009.  She vowed to 
continue the fight against corruption.  She thanked donors for debt 
relief and contributions to all four Poverty Reduction Strategy 
(PRS) pillars, and asked for their emergency support in fighting the 
army worm infestation.  She called the United States Liberia's "key 
partner" and lauded us for the return of Peace Corps, the opening of 
the American International School of Monrovia, Security Sector 
Reform, and for according Liberia Millennium Challenge threshold 
status.   She announced a moratorium on all international adoptions 
until the GOL can introduce more safeguards for adopted children. 
Finally, she declared a reduction in business and personal tax rates 
in order to make Liberia's investment climate more attractive during 
the global financial crisis.  The full text of speech can be found 
on the Executive Mansion website at: 
http://www.emansion.gov.lr/doc/2009_Annual_Me ssage.pdf 
END SUMMARY. 
 
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CORRUPTION 
---------- 
 
¶2. (U) President Sirleaf said the GOL's greatest challenge in 2009 
would continue to be the fight against corruption.  She reiterated 
that the recent increase in press stories on corruption was not 
indicative of an increase in actual corruption, but rather a sign of 
a truly free press that is ready to expose dishonest officials.  She 
lauded the Anti-Corruption Commission (ACC) and the General Auditing 
Commission for their work in 2008 and asked the Legislature to 
continue supporting them.  She also asked the Legislature to pass 
the Code of Conduct for Public Servants, a pending amendment to the 
Public Procurement and Concessions Commission Act, and a forthcoming 
asset freeze provision in the Penal Code as soon as possible. 
Sirleaf announced she has set up a committee to inspect county 
development project funding and asked the county legislative 
caucuses to continue their oversight of the projects but to stop 
interfering in their implementation.  The President said the 
Ministry of Justice would be working with the Judiciary to set up a 
special mechanism for handling corruption cases expeditiously. 
Finally, she vowed that 90% of all GOL employees will be paid by 
direct deposit by April 2009. 
 
------------------------------ 
U.S. ASSISTANCE AND INVESTMENT 
------------------------------ 
 
¶3. (U) President Sirleaf said President Bush's February 2008 visit 
was historic for Liberia and thanked USAID for fulfilling the 
promise he made for 10,000 desks and one million books.  She called 
the return of Peace Corps proof that Liberia was on the right 
development track and expressed her gratitude for Liberia's 
designation as a Millennium Challenge Account threshold country. 
Sirleaf thanked us for our contribution to Peace and Security Pillar 
(see paragraph 6).  She praised the opening of the American 
International School of Monrovia and, looking at the Chief Justice, 
called for an end to harassment of the school by "questionable 
judicial" activity.  She said Delta Airlines' planned direct flight 
to Monrovia could bring new investment from the United States. 
 
----------------------- 
MORATORIUM ON ADOPTIONS 
----------------------- 
 
¶4. (SBU) Sirleaf unexpectedly announced a moratorium on all 
international adoptions until a special committee she created looks 
into the "gross mismanagement" by both U.S. personnel at the 
American-run Acres of Hope NGO and GOL officials who lured children 
with living parents into orphanages and sometimes sexually abused 
them.  She said the adoption program will be suspended until 
regulations for adoptions have been strengthened and vowed to submit 
a comprehensive National Social Welfare Policy and National Adoption 
Act to the Legislature by the end of the year. 
 
-------------------------- 
POVERTY REDUCTION STRATEGY 
-------------------------- 
 
President Sirleaf thanked donors for their assistance to the four 
pillars of the Poverty Reduction Strategy (PRS) and highlighted GOL 
achievements made under each one. 
 
-- PEACE AND SECURITY 
 
¶6. (U) Sirleaf thanked the United States for our contribution to 
Peace and Security Pillar through the Security Sector Reform 
program.  She noted that the Armed Forces of Liberia reached its 
full strength of 2,057 soldiers in 2008 and that the 
re-establishment of the Coast Guard was underway.  She was grateful 
 
MONROVIA 00000090  002 OF 003 
 
 
for the training that led to the activation of the Emergency 
Response Unit (ERU) of the Liberia National Police (LNP) and pledged 
that all 500 ERU officers would be operational by the end of 2009. 
She noted that there is approximately one police officer for every 
1,000 Liberian citizens and said she would look for assistance to 
help recruit and train more officers.  She vowed to submit the 
Liberian National Security and Intelligence Act to the Legislature 
sometime this session. 
 
-- ECONOMIC REVITALIZATION 
 
¶7. (U) Sirleaf highlighted the sharp improvement in economic 
indicators - GDP, GOL revenue, foreign reserves, and exports - under 
her administration.  She said the global financial crisis was a 
"mixed curse" for Liberia, with lower costs of imported food and 
fuel outweighing lower export revenues from rubber.    Calling 
agriculture the key to economic development, she said the crisis 
provides incentive for Liberians to boost domestic food production 
(and reduce the $200 million spent on rice imports last year) and 
offered five acres of land to any Liberian willing to move out of 
Monrovia to farm.  Sirleaf thanked the donors for committing to debt 
relief and vowed to keep Liberia on course towards the HPIC 
completion point.  She also called on the Legislature to ratify 
several concession agreements, including with Buchanan Renewable 
Power ($150 million), China Union mining ($2.6 billion), and 
forestry concessions.  While applauding foreign investment in the 
extractive industries, she noted weak growth by Liberian businesses, 
and criticized cumbersome and corrupt procedures at the port.  (See 
paragraph 11 for more one the investment climate.) 
 
-- GOVERNANCE AND RULE OF LAW 
 
¶8. (U) Under Governance and Rule of Law, Sirleaf said steps would be 
taken in 2009 to speed up the lethargic judicial process.  A 
magistrate would be assigned to the Monrovia Central Prison to 
expedite hearings for pre-trial detainees.  She said she looked 
forward to the official opening of "Criminal Court E" in the coming 
weeks in order to tackle the large backlog of rape and gender-based 
violence cases.  She also said the Ministry of Justice would crack 
down on "professional jurors" who leapfrog from case to case in 
search of fees.  (Note: Juries earn most money from bribes rather 
than the paltry official remuneration. End note.) 
 
-- INFRASTRUCTURE AND BASIC SERVICES 
 
¶9. (U) Stating that roads and bridges were the highest priority 
identified by Liberians in the PRS county consultation process, 
Sirleaf promised substantial upgrades in 2009.  After thanking China 
for its road construction work thus far, Sirleaf said systematic 
work on all of the streets in Monrovia would begin in two weeks and 
would be finished in two years.  She also promised work on specific 
rural primary roads and some farm-to-market roads.  Sirleaf said the 
GOL did not have the funds to rehabilitate the country's five ports 
but would offer a Build Operate and Transfer (BOT) scheme to 
interested foreign companies.  She vowed to dismiss port employees 
for theft and said better security at the port would reduce freight 
costs and thus the price of imported goods on the Liberian market. 
She said 11,000 affordable housing units would be constructed in 
2009 and praised revival of the state-owned Liberia 
Telecommunications Corporation "that will compete with the private 
GSM companies." 
 
------------------------------------------- 
DECLARATION OF EMERGENCY AGAINST ARMY WORMS 
------------------------------------------- 
 
¶10. (U) Sirleaf declared a state of emergency in Bong County and 
other areas affected by the army worm caterpillars.  She instructed 
the Ministry of Finance to make funds available quickly to help 
fight the insects' progression and provide relief to those who lost 
their crops, and called on foreign partners for rapid assistance. 
 
--------------------------- 
IMPROVED INVESTMENT CLIMATE 
--------------------------- 
 
¶11. (U) President Sirleaf has long stressed the need to improve the 
business climate in order to support investment.  She called on the 
legislature to pass revisions of the Investment Code, the Revenue 
Code and the Public Financial Management Act and announced new tax 
reductions.    She said the revised Labor Code would include an 
increase in the minimum wage, (which is currently 25 cents an hour 
or $2 per 8-hour day). 
 
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COMMENT 
------- 
 
¶12. (SBU) The Sirleaf Government has made impressive progress 
towards its development goals in 2008, including the adoption of an 
 
MONROVIA 00000090  003 OF 003 
 
 
inclusive Poverty Reduction Strategy, debt relief, and security 
sector reform.  The challenge will be to sustain this progress into 
2009 as she begins the second half of her six-year term.  The 
low-hanging fruit has been gathered and the remaining challenges - 
such as seriously tackling corruption, reforming the judicial 
system, and attracting new investment amidst the global financial 
crisis - will be more difficult.  Sirleaf, however, seems to be 
enthusiastically up for the challenge.  She did not hesitate to 
point fingers and announce politically tough initiatives.  Her 
particularly hard-hitting statements on corruption will set the tone 
for the coming year.  We eagerly await her promised imminent Cabinet 
reshuffle to find out whom she thinks is worthy of bringing along on 
the journey.