US embassy cable - 05KINSHASA1678

C O N F I D E N T I A L KINSHASA 001678 
 
SIPDIS 
 
DEPT PASS TO USTR (WJACKSON), OPIC 
 
E.O. 12958: DECL: 09/20/2015 
TAGS: PGOV, ECON, EMIN, KCOR, CB 
SUBJECT: NEW CAST OF CHARACTERS FOR GDRC PARASTATALS 
 
Classified By: ECONOFF WBRAFMAN FOR REASONS 1.4 B and D. 
 
1. (C) PolCouns met in September with Ngoba Maloba, the 
former CEO of the Congolese electricity company SNEL, who was 
replaced in the August 5 realignment of the directors of most 
of the major Congolese parastatals. Although Maloba 
complained bitterly that he was the victim of &political 
deals,8 his position had been in jeopardy since October 
2004, when he and others, including then-Presidental Chief of 
Staff Boshab, were accused of appropriating several millions 
of dollars from a payment made by the government of the 
Republic of the Congo.  (Note:  Boshab subsequently lost his 
job in November 2004, and was replaced earlier this year by 
former Minister of Foreign Affairs Leonard She Okitundu.  End 
Note.) 
 
2. (C) Interestingly, Maloba did not deny his involvement in 
the misappropriation of funds, but merely noted that various 
GDRC Ministers (including the Ministers of Energy and 
Portfolio) routinely collect ten percent of all payments made 
to SNEL. He said that usually these funds are distributed 
quarterly, based on SNEL,s accounting of its receipts. 
 
3. (C) Intense political debate culminated in the August 
shuffle of most of the top management and boards of directors 
of 30 of the parastatals.  The restructuring parceled out 
control of the parastatals (including cash cows such as SNEL, 
the national insurance agency, and the diamond parastatal) to 
the transitional government's factions. 
 
4. (U) The restructuring drew fire from members of almost 
every political faction, most of whom felt that some other 
group got bigger or better positions. The numbers, however, 
do not support these complaints.  The MLC (VP Jean-Pierre 
Bemba's party) and the RCD/Goma (VP Azarias Ruberwa's 
faction) each control six parastatals. RCD/Goma has SNEL in 
its portfolio, as well as OFIDA, the customs agency. The PPRD 
(President Kabila's party) controls no fewer than ten 
enterprises.  VP Yerodia's "political opposition" component 
(allied with the PPRD) controls five of the 30 restructured 
parastatals, and VP Z'ahidi Ngoma's Civil Society is in 
charge of four. Among noteworthy changes are the shifts of 
Victor Kasongo, CEO of CEEC (precious minerals/metal 
evaluation authority) to Okimo (gold mining) and his 
replacement by a MLC party member. The MLC now controls most 
of the diamond industry positions. Gecamines (copper, cobalt, 
nickel, zinc mining), MIBA (diamond mining) and Lignes 
Aeriennes Congolaises (Congolese airline) are among those 
parastatals whose management the Presidency did not 
restructure. 
MEECE