US embassy cable - 05NDJAMENA1760

C O N F I D E N T I A L  NDJAMENA 001760 
 
SIPDIS 
 
 
LONDON AND PARIS FOR AFRICA WATCHERS, TREASURY FOR OTA, 
ENERGY FOR GPERSON AND CGAY 
 
E.O. 12958: DECL: 12/11/2015 
TAGS: CD, ECON, EFIN, ENRG, EPET, PGOV, Oil Revenue Management 
SUBJECT: GOC-WORLD BANK STILL DUKING IT OUT ON OIL LAW 
REVISIONS, TREASURY ADVISOR'S STATUS STILL UNCLEAR 
 
REF: NDJAMENA 1707 AND PREVIOUS 
 
Classified By: Economic/Consular Officer Jitu Sardar for reasons 1.4 (b 
) and (d) 
 
1.  (C)  SUMMARY:  Even though some Chadian ministers remain 
optimistic about a compromise with the World Bank, President 
Deby reiterated the GOC's right to move forward with revising 
its oil revenue management law in a combative speech at 
ceremonies in Fada in northern Chad on December 10.  Because 
the GOC had yet to send an invitation letter to the IMF and 
World Bank, the IMF decided to hold off sending its technical 
assessment mission to Chad.  We continue to pursue the issue 
of permitting our Treasury Advisor to begin work at the 
College.  While GOC ministers maintain it could be resolved 
within the next few weeks, other viewpoints indicate that GOC 
officials may not be so quick to agree to the advisor's 
placement in the College.  END SUMMARY. 
 
- - - - - - - - - - - - - - - - - - - 
GOC OFFICIALS OPTIMISTIC OF COMPROMISE 
- - - - - - - - - - - - - - - - - - - 
 
2.  (SBU)  GOC officials stated to us last week that the 
Government believes a resolution can be reached with the 
World Bank on the revisions of the revenue management law. 
Minister of Plan, Economy, and Development Mahamat Hassan 
told the Ambassador on December 8 that the GOC is ready and 
willing to negotiate with the World Bank.  He noted that 
President Deby's comments in the RFI interview November 28 
reflected the Government's frustration with the World Bank, 
and the GOC's view of its sovereign right to make decisions 
on its oil revenues. 
 
3.  (SBU)  Hassan stated that the Chadian delegation that 
visited Washington for the September World Bank-IMF meetings 
left with a deep sense of frustration that the World Bank had 
not acknowledged its concerns.  Unmet expectations over 
benefits of oil, he argued, were creating deep social 
tensions among the population.  Hassan noted that a rupture 
with the Bank would not be helpful.  He pointed out that the 
GOC was painfully aware of this fact following the suspension 
of its IMF PRGF program in 2004. 
 
4.  (SBU)  President of the Revenue Management College 
Abdoulaye Lamana told the Ambassador December 8 that he was 
optimistic about resolving the dispute between the GOC and 
the World Bank.  Lamana stated that government officials, 
including the Prime Minister, told him the GOC would be 
prepared to negotiate an agreement on this front.  Lamana 
noted that direct dialogue needed to take place at higher 
political levels in both organizations.  While Lamana 
understand the reasoning for the World Bank to send a 
technical assessment mission to Chad, political dialogue 
needed to occur with senior World Bank and GOC officials. 
 
- - - - - - - - - - 
DEBY REMAINS DEFIANT 
- - - - - - - - - - 
 
5.  (U)  President Deby reaffirmed his determination to push 
through revisions in the oil law in a speech at a rally in 
the northern city of Fada on December 10. He claimed oil 
revenues would continue to be managed transparently and with 
the goal of reducing poverty.  In provocative terms, he 
asserted that he would never allow the World Bank or any 
other outsider to interfere with his country's sovereignty. 
 
 
- - - - - - - - - - - - - - - - - - - - - - - - 
IMF PULLS ITS ASSESSMENT TEAM FOR THE TIME BEING 
- - - - - - - - - - - - - - - - - - - - - - - - 
 
6.  (SBU)  IMF Representative Wayne Camard told the 
Ambassador on December 12 that the IMF had decided to pull 
its technical assessment mission, following a failure by the 
Prime Minister's office to formally invite a joint World 
Bank/IMF team to Chad.  Camard stated that his headquarters 
could no longer wait for the GOC's response, while a team 
 
 
that could be used for other assessment missions was put on 
stand-by. 
 
- - - - - - - - - - - - - - - - 
TREASURY ADVISOR STATUS ON HOLD 
- - - - - - - - - - - - - - - - 
 
7.  (SBU)  Concerning the status of U.S. Treasury Advisor 
Linda Gregory, who has yet to be able to begin work at the 
College, GOC ministers told the Ambassador that they would 
try to resolve her status as quickly as possible.  Minister 
of Plan Hassan offered a time frame of ten days for a final 
resolution to Gregory's status.  He said that the issue did 
not have to wait for action in the National Assembly on 
revising the oil law.  He promised to consult with the 
Foreign Ministry and work out an agreement on the terms of 
reference of her contract. 
 
8.  (SBU)  Following their meeting on December 2 (see 
reftel), Minister of Finance Abbas Tolli told the Ambassador 
on December 9 that a letter with the GOC's proposed revisions 
to the terms of reference in the Treasury Advisor's contract 
would be sent shortly.  College President Lamana added in his 
meeting with the Ambassador that we should wait until the 
debate concerning the oil revenue laws begins on December 20, 
as he felt the GOC would solidify its position on the oil law 
revisions, the status of the Revenue Management College, and 
the position of the Treasury Advisor. 
 
9.  (C)  While comments from these senior officials seem 
promising, other informal comments reveal that the GOC is 
hesitant to allow Gregory to begin her work in the College. 
In addition to comments made by the Ministry of Plan's 
Director of Plan (see reftel), former Minister of Finance 
Nadjiam Djaibe told the Embassy on December 9 that misguided 
officials were under the impression that the Treasury advisor 
would actually work for the World Bank, and thus were 
hesitant to allow her to assume her position.  At the same 
time, GOC officials feared permitting scrutiny that could 
impede the flow of resources for President Deby's immediate 
objectives (i.e., elections, preserving security, and paying 
salaries).  As a result, GOC officials would continue to 
stall on Gregory's position, according to the former Finance 
Minister. 
 
- - - - 
COMMENT 
- - - - 
 
10.  (C)  If, as the two Ministers suggest, the issue of the 
terms of reference of our Treasury Advisor's contract can be 
separated from that of the revision in the oil law, we are 
hopeful the matter can be resolved soon.  Otherwise it could 
drag on much longer.  Unfortunately, the status of the 
position will unavoidably be caught up in the bigger debate 
over the oil law and Chad's relations with the World Bank. 
We will keep on top of the issue. 
WALL 
 
 
NNNN