Guinea's Conte snubs prime minister over Libya deal

Sat Apr 5, 2008 7:53am EDT

CONAKRY, April 5 (Reuters) - Guinea's President Lansana Conte has annulled a Libyan investment deal signed by Prime Minister Lansana Kouyate, in the latest sign of tensions between the veteran leader and the consensus premier.

A presidential decree read on state television late on Friday cancelled the acquisition by a Libyan state company of stakes in three hotels in the West African state, the world's largest bauxite exporter.

"The president apparently decided it was not normal to exonerate the Libyans from all tax during 10 years, according to the texts signed by the prime minister," said a source at the finance ministry.

Kouyate was appointed in 2007 with range-ranging powers under a deal to end union-led anti-government protests in which more than 130 people were killed.

Relations between Kouyate and the ruling clique surrounding the ailing, octogenarian Conte have been tense, flaring in January when Conte abruptly dismissed a cabinet minister allied to the prime minister, snubbing his authority.

That sparked a day of rioting in the coastal capital Conakry and a general strike was only averted after Kouyate himself intervened to negotiate with unions. (For full Reuters Africa coverage and to have your say on the top issues, visit: africa.reuters.com/ ) (Reporting by Saliou Samb; editing by Daniel Flynn and Sami Aboudi)




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