US embassy cable - 05DJIBOUTI680

C O N F I D E N T I A L DJIBOUTI 000680 
 
SIPDIS 
 
STATE FOR AF, AF/E, AND DRL 
 
E.O. 12958: DECL: 07/18/2015 
TAGS: PGOV, EFIN, PHUM, DJ 
SUBJECT: ANTI-CORRUPTION SHAKE-UPS AT FINANCE MINISTRY 
 
Classified By: Pol/Econ Erinn C. Stott for reasons 1.4 (b) and (d). 
 
1. (C) New Minister of Finance Ali Farah Assoweh has launched 
a wide-spread operation to "clean-up" his Ministry of some 
"bad habits" in what appears to be a serious anti-corruption 
campaign. Some directors have been suspended and a judicial 
inquiry has been launched. 
 
2. (C) The Director of Customs, Elmi Isman Yonis, has been 
suspended from his position and is now in custody. 
Reportedly, 92 million Djibouti Francs (approx. $520,000) are 
missing from "merchandise taxes" owed by traders. It is 
believed the director awarded "favors" to some well-known 
traders by reducing taxes for products they legitimately owed 
in exchange for a kick-back. Traders Abdoul Karim Al Gamil of 
the Al-Gamil grocery chain and Mahamoud Ibrahim of the 
Napoleon Bonaparte Grocery stores are the main traders from 
whom the Finance Minister is seeking a payment of back taxes. 
The amount is said to equal 70 million DF (approx. $395,000). 
Some officials in charge of customs for the Port and Airport 
were also suspended in what is being described as an effort 
to dismantle a network. 
 
3. (C) The Director of State Property, Ali Djama Abdi, has 
also been removed from his position. Around 20 million DF 
(approx. $113,000) are said to be missing from deals in which 
public lands were sold to private entities and money was 
deposited in the public treasury. The Minister of Finance 
also spoke with accountants working in all Djiboutian 
embassies abroad last week to remind them to respect 
procedures. He reportedly warned them that impunity would no 
longer exist in the Ministry of Finance. Rumors say that some 
directors in public companies have been the subject of audits 
by finance inspectors since this shake-up began last week. 
 
4. (C) Comment: In a conversation with Ambassador, Director 
of the International Monetary Fund's office in Djibouti, 
Emmanuel Kumah, (strictly protect), who works very closely 
with the Minister of Finance, confirmed removal of the 
Director of Customs. Kumah said he was told by the Minister 
the Customs Director was removed for "insubordination." Yet, 
the Minister affirmed a long-standing irregularity in 
payments from Customs to the Treasury. He told Kumah it was 
now a judicial matter. Kumah also heard from other sources 
about the removal of the Director of State Property. He said 
that Finance inspectors had indeed been sent to both offices. 
Embassy will follow-up with a more detailed investigation of 
the matter. End Comment. 
RAGSDALE