VZCZCXRO6151
RR RUEHBZ RUEHDU RUEHGI RUEHJO RUEHMA RUEHMR RUEHPA RUEHRN RUEHTRO
DE RUEHLC #0467/01 2931447
ZNR UUUUU ZZH
R 201447Z OCT 09 ZDK
FM AMEMBASSY LIBREVILLE
TO RUEHC/SECSTATE WASHDC 1485
INFO RUEHZO/AFRICAN UNION COLLECTIVE

UNCLAS SECTION 01 OF 02 LIBREVILLE 000467 
 
C O R R E C T E D  C O P Y (PARA 2 NAME CORRECTION 
HUGHES ALEXANDRE BARRO CHAMBRIER) 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR AF/C KORTE 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM KCOR GB
SUBJECT: GABON: ALI BONGO ARRESTS KEY PLAYERS IN REGIONAL BANK 
SCANDAL 
 
LIBREVILLE 00000467  001.3 OF 002 
 
 
¶1.  (SBU) Summary:  Newly installed Gabonese President Ali Bongo 
Ondimba recalled Philibert Andzembe, the Governor of the Central 
Bank of Central African States (BEAC), who is Gabonese, in the wake 
of revelations about the $82 million financial scandal.  Press 
sources are reporting that two other Gabonese officials implicated 
in the scandal and closely tied to former President Omar Bongo, were 
arrested in Libreville on October 20.  Bongo's swift action against 
the corrupt officials sent a clear signal that he intends to 
implement changes at home and maintain Gabon's stature in the 
region.  End Summary. 
 
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IMMEDIATE ACTION AGAINST CORRUPT OFFICIALS 
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¶2.  (U) President Ali Bongo's first Council of Ministers meeting 
resulted in the announcement of a number of significant changes in 
how government business will be conducted.  The most immediate and 
visible action taken was the recall of Philibert Andzembe, the 
current BEAC Governor, who is Gabonese.  Bongo has since announced 
his replacement, Hughes Alexandre Barro Chambrier, who previously 
served at the International Monetary Fund and was deputy minister for 
forestry. Gabon also announced it would facilitate the ongoing 
investigation into the role of Gabonese officials in $82 million 
scandal, including QVhuQscandal, Armand Brice Ndazamba and 
Maurice Moutsinga were reportedly arrested in Libreville, according 
to press sources. 
 
- - - - - - 
BACKGROUND 
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¶3.  (U) The BEAC, headquartered in Yaounde, Cameroon administers the 
Central African economic zone.  Gabon, Cameroon, Chad, Equatorial 
Guinea, the Republic of Congo, and Central African Republic use a 
French-backed currency (F CFA) pegged to the Euro.  Since its 
inception, the Governor of the BEAC has always been a Gabonese 
citizen, in large part because Gabon had held the largest reserves 
in the bank. 
 
¶4.  (U) In 2009, a BEAC audit discovered losses of an estimated $43 
million in poor investments and $39 million in the diversions 
through its external office in Paris between 2004 and 2008.  The 
diversion of funds was traced to fraudulent checks, wire transfers, 
and use of pension funds to make property investments in Gabon and 
France.  Armand Brice Nzamba, a Gabonese official at BEAC's external 
office in Paris allegedly signed over 300 checks and deposited them 
at the Champs d'Elysees branch of Societe Generale Bank, a prominent 
French bank.  Maurice Moutsinga, the former Director of Accounting 
and Budgetary Control at BEAC's Yaounde headquarters, covered up the 
transfers through false accounting.  Many other senior bank 
officials from other member states have also been implicated in the 
scandal.  The French Government also announced its own 
investigation. 
 
¶5.  (U) In April 2009, in response to the audit, the regional heads 
of state suspended all investment operations until further notice as 
a "protective measure."  The summit communiqu did not mention the 
losses incurred, but stated that steps were being taken to "to 
protect the credibility and stability of the Central Bank." 
 
¶6.  (U) On September 13, a Jeune Afrique article entitled "Hold Up 
at the BEAC" exposed BEAC's problematic management under Philibert 
Andzembe and the embezzlement of funds by numerous officials, 
including prominent Gabonese.  In late September, Andzembe publicly 
admitted that the information in the article was partially true.  He 
expressed concern that some of the findings of the ongoing 
investigation were leaked prior to its completion.  Several 
investigations into individual officials were launched and many of 
the BEAC employees involved were suspended, dismissed, or have 
resigned.  They could face criminal prosecution. 
 
¶7.  (U) Andzembe, who became BEAC Governor in July 2007 only 
acknowledged the diversion of funds that occurred prior to his 
taking office.  However, Andzembe is also under scrutiny for poor 
investment decisions that were made without the consultation of 
member states during his tenure.  Andzembe's predecessor, Jean-Felix 
Mamalepot's role in the diversion is also being investigated. 
 
¶8.  (SBU) Andzembe's recall and the two arrests come at a time when 
other countries are questioning Gabonese management of the BEAC. 
Equatorial Guinea, which is now the largest depositor in the BEAC, 
with 52% of its holdings, is reportedly interested in taking over 
leadership of the bank.  Gabonese mismanagement of the BEAC could 
open the door to another country taking over the top slot at the 
 
LIBREVILLE 00000467  002.2 OF 002 
 
 
next BEAC summit in Bangui at the end of November. 
 
- - - - 
COMMENT 
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¶9.  (SBU) Ali Bongo's quick action against Gabonese BEAC officials 
surprised some observers because those implicated were close to his 
father.  However, Bongo promised to fight corruption and the BEAC 
scandal was undermining Gabon's regional stature.  Bongo also may 
have felt he had to act quickly to control the scandal's damage 
ahead of the November heads of state summit in Bangui. 
REDDICK