VZCZCXRO6564
PP RUEHMA RUEHPA
DE RUEHCO #0341/01 2181243
ZNR UUUUU ZZH
P 061243Z AUG 09
FM AMEMBASSY COTONOU
TO RUEHC/SECSTATE WASHDC PRIORITY 1061
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHFR/AMEMBASSY PARIS 1507
RUEHLO/AMEMBASSY LONDON 0463

UNCLAS SECTION 01 OF 02 COTONOU 000341 
 
SIPDIS 
 
DEPT FOR AF/E JKNIGHT; AF/W ACOOK; 
LONDON FOR PETER LORD 
PARIS FOR BKANEDA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL BN
SUBJECT: BENIN NATIONAL DAY: PRESIDENT APOLOGIZES PROMISING TO FIGHT 
CORRUPTION 
 
REF: (A) COTONOU 310  (B) COTONOU 124; (C) COTONOU 101; 
(D) COTONOU 44; (E) 08 COTONOU 802; (F) 08 COTONOU 657; 
(G) 08 COTONOU 146 
 
¶1. SUMMARY: In his National Day speech on August 1, 2009, President 
Yayi explained his measures to strengthen democracy and foster 
economic progress, including constitutional review, reinforcement of 
constitution-based institutions, the reorganization of the 
multi-party system, and the implementation of electoral and 
administrative reforms (Ref D). Yayi said human resources, economic 
potential, and infrastructure developments would help mitigate the 
effect of the global financial crisis on Benin. He pledged to combat 
corruption by ending impunity. In a subsequent televised interview, 
the President spoke about the political and economic challenges 
facing Benin. He blamed former Minister of Finance and Economy, 
Soule Mana Lawani, for CEN-SAD related corruption, denied any 
personal involvement, but accepted moral responsibility for it (Ref 
A). Many felt President Yayi showed humility and willingness to 
engage in dialogue, while reiterating his commitment to fighting 
corruption. END SUMMARY. 
 
 
----------------------------------- 
STRENGHTENING DEMOCRATIC GOVERNANCE 
----------------------------------- 
 
¶2.  On the 49th anniversary of Benin's independence on August 1, 
President Yayi reiterated his commitment to preserving democratic 
and economic gains made since Benin embraced democracy in 1990. He 
added that his government worked towards improving existing and 
creating new democratic institutions through constitutional review 
(Ref G). This includes the appointment of members to the High Court 
of Justice, the Economic and Social Council, and the High Authority 
for Media and Communication. Yayi also mentioned the recent creation 
of a Mediator of the Republic, a body charged with resolving 
conflicts that oppose the administration and citizens. Yayi cited 
several reforms and objectives, like creating the Computerized Voter 
Registry (LEPI) (Ref E), restructuring the National Autonomous 
Electoral Commission (CENA), administrative reform, and 
implementation of the Opposition Act (Ref C). 
 
¶3.  According to the president, the constitution-based multiparty 
system, as implemented by politicians, disrupts the functioning of 
democracy. Benin has hundreds of political parties without a 
political platform. The majority of these parties fail to support 
democratic governance; very few field candidates in legislative 
elections and are represented in the National Assembly. Yayi pledged 
to reform the current multi-party system to allow political parties 
to play a more efficient role. 
 
------------------------ 
TACKLING ECONOMIC CRISIS 
------------------------ 
 
¶4. President Yayi emphasized the global financial crisis as a 
challenge to Benin's economic performance. He underscored the 
effects of the shrinking global market, the fall in prices of 
primary products, and the decrease in direct foreign investment and 
aid. Yayi included that the depreciation of Nigeria's currency (the 
Naira) caused by a decrease in oil production reduced Nigerian 
demand for Beninese goods and trans-shipment services. To address 
these challenges, Yayi proposed that policies focus on the 
development of human resources, infrastructure, and economic 
potential (Ref D). He announced the creation of a joint committee 
focused on mitigating the mid and long-term impact of the financial 
crisis in Benin. He discussed the need for the GOB to set realistic 
prices for government supplied commodities like water and 
electricity, after a failed attempt to contain price inflation 
through subsidies. The GOB subsequently had to increase water and 
electricity prices. Yayi stressed efforts to support the private 
sector and also encouraged public-private relations. 
 
-------------------- 
COMBATING CORRUPTION 
-------------------- 
 
¶5. President Yayi advocated for good governance, highlighting the 
importance of transparency and accountability in the management of 
state funds. He pledged to improve good governance and end impunity. 
During the press interview, Yayi denounced former Minister of 
Finance and Economy, Soule Lawani in connection with the CEN-SAD 
high-profile corruption case (Ref A). Yayi explained that he 
personally ordered an investigation by the State Audit Office (IGE). 
He decided to publish the investigation findings, denying 
allegations that international partners had urged him to do so. Yayi 
admitted he was surprised and disappointed by Lawani's involvement, 
 
COTONOU 00000341  002 OF 002 
 
 
and confirmed Lawani had failed to conform to public contract 
regulations. Yayi added that an Independent Investigative Commission 
has been established to pursue further investigations. 
 
¶6.  Because a member of his cabinet was implicated, President Yayi 
accepted moral responsibility for the CEN-SAD corruption case. 
However, he denied involvement in any alleged misappropriations of 
state funds, and confessed the CEN-SAD case shocked and disgraced 
him. Yayi formally apologized to the Beninese public stating that 
political haste at times leads to poor decision making. 
 
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COMMENT 
------- 
 
¶7. President Yayi's interview generally received positive reactions. 
Politicians feel he showed great humility and frankness. The public 
hailed him for his open-mindedness and for his political courage as 
he addressed "thorny" issues.  Yayi is the first Beninese president 
to publicly make frank statements on a high-profile case in which 
members of his cabinet are allegedly involved. Very few observers 
believe the president's speech and interview are just 
electioneering. An analysis of the content of the August 1st speech 
and interview reveals overall consistency with Yayi's stated 
political agenda. 
 
BOUSTANI