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Viewing cable 07DAKAR1522, THE COST OF A NEW GOVERNMENT: CARS, HOTEL, AND A NEW SENATE

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Reference ID Created Released Classification Origin
07DAKAR1522 2007-07-23 15:55 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Dakar
VZCZCXRO0107
PP RUEHMA RUEHPA
DE RUEHDK #1522 2041555
ZNR UUUUU ZZH
P 231555Z JUL 07
FM AMEMBASSY DAKAR
TO RUEHC/SECSTATE WASHDC PRIORITY 8838
INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHLMC/MCC WASHDC PRIORITY
RUEHZK/ECOWAS COLLECTIVE
UNCLAS DAKAR 001522 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
DEPARTMENT FOR AF/W AND AF/EPS 
TREASURY FOR DO/GCHRISTOPOLUS 
 
REF:  DAKAR 1454 
 
E.O. 12958: N/A 
TAGS: EFIN ECON PGOV PREL SG
SUBJECT: THE COST OF A NEW GOVERNMENT: CARS, HOTEL, AND A NEW SENATE 
 
 
1.  (SBU) Summary.  A June 30 report in the daily "Wal Fadjri" that 
the Government of Senegal (GOS) was planning to spend CFA 2.250 
billion (USD 4.5 million) to purchase Chinese "Hover" brand SUVs for 
the 150 newly elected Deputies, was confirmed by reliable sources at 
the Ministry of Finance.  The President of the National Assembly, 
Macky Sall, has already signed the purchase order from a local 
dealership representing the Chinese auto company.  On July 4, The 
National Assembly passed a bill to speed up the creation of the new 
100-seat Senate.  Further, the GOS has also plans to build a new 
"five-star" hotel for the Deputies by December 2008.  The opposition 
press and public are asking where the money will come from for these 
extra expenditures and if the Wade is serious about fighting poverty 
and improving the country's economic performance.  Moreover, rumors 
persist that Wade has ordered a new Presidential plane.  End 
Summary. 
 
GOS TO SPOIL THE DEPUTIES AND SENATORS 
-------------------------------------- 
2.  (U) While Senegal is trying to sort out a CFA 22 billion (USD 44 
million) budget deficit, is in arrears on payments to many suppliers 
and contractors, and is considering new subsidies for basic food 
items, the press and opposition are deriding the purchase of new 
cars for MPs to "facilitate" their activities around the country. 
Not only will this purchase gouge USD 4.5 million from an already 
strained budget but the deal also includes a monthly 1,000-liter 
gasoline allowance to members of the National Assembly Boards, worth 
approximately USD 632.88 at current retail prices.  For many 
Deputies, this will be their second luxury vehicle in four years. 
In 2003, the GOS purchased the then 120 MPs Mitsubishi "Pajero" 4WDs 
at a cost of CFA 2.640 billion (USD 5.280 million).  While in 
session, the Deputies are housed, at no cost, in a hotel and the GOS 
is now reportedly planning to build a new "five-star" version at an 
estimated cost of CFA 10 billion (USD 20 million). 
 
3.  (U) The GOS is about to re-establish a 100-seat Senate, 65 of 
whom will be directly appointed by Wade and the other 35 will be 
elected by an electoral college of 15,000 members consisting of the 
members of the parliament and of the regional and local councils 
(largely dominated by Wade's PDS party).  The Senators compensation 
package includes: new cars, a monthly gasoline allowance and a 
monthly salary of at least CFA 1 million (USD 2000). 
 
A STRONG REACTION - BUT NO IMPACT 
--------------------------------- 
4.  (SBU) While criticizing the PDS for purchasing new cars without 
any public debate, the press and opposition party leaders are 
questioning how the GOS can afford all these perks for a National 
Assembly with a reputation for nonperformance.  Even PDS members 
cannot help but note the contrast between this pampering of Wade's 
political supporters and recent campaign promises to seriously 
address Senegal's pressing development needs.  Though these perks 
may facilitate the electoral strategy of the PDS and help maximize 
the party's control over Senegal's legislative branch, many 
commentators have questioned whether the "ruling class" standard of 
living is attuned to a country whose 2006 national per capita income 
was USD 550.  They argue that scarce public funds could be better 
spent on higher priority areas rather than creating jobs and 
benefits for the political class.  When the news of the vehicles 
purchase was first reported, the Senegalese Consumer Association 
(ASCOSEN) marched in protest at this action in the face of the high 
cost of living and the increasing prices for basic commodities. 
 
COMMENT 
------- 
5.  (SBU) This fiscal crisis is compounded by recent reports that 
over the past two years the opaque "Presidency" budget was secretly 
used to purchase a new Airbus worth CFA 50 billion (USD 100 million) 
for a presidential jet.  The political opposition is publicly 
outraged by the PDS's manipulation of the budget and the "man on the 
street" appears ready to push back:  a government which can purchase 
new fancy cars and build new hotel for the Deputies, enlarge the 
national assembly, and create a Senate should be able to give "him" 
more as well.  This is one reason why the Minister of Commerce 
decided not to attend the July 8-19 AGOA Forum in Accra and 
concentrate on new subsidies for rice, bread, milk, and gasoline 
(Reftel).  End Comment. 
 
6.  (U) Visit Embassy Dakar's Intranet site at: 
http://dakar.state.gov/htdocs/section/econSec tion.aspx and Embassy 
Dakar's SIPRNET Web site at http://www.state.sgov.gov/p/af/dakar 
 
Smith