RULING PARTY DEVELOPING FISSURE; GOVERNMENT

C O N F I D E N T I A L SECTION 01 OF 02 LILONGWE 000728

SIPDIS

E.O. 12958: DECL: 08/02/2014
TAGS: PGOV KDEM PINR MI
SUBJECT: RULING PARTY DEVELOPING FISSURE; GOVERNMENT
GAINING IDENTITY

REF: LILONGWE 719

Classified By: Pol/Econ Officer Peter W. Lord, reasons 1.5 (b/d).

SUMMARY
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1. (C) With former President and United Democratic Front
(UDF) Chairman Bakili Muluzi's return from his overseas
holiday and President Bingu wa Mutharika's continuing display
of independence (reftel),a fissure in the ruling UDF is
quickly forming between Muluzi's old guard and Mutharika's
recent converts. A UDF heavyweight's arrest and the
President's overly frank new Chief of Staff have left party
members drawing lines and choosing sides. Judging from
Muluzi's trenchant comments upon his August 1 arrival, the
UDF did not anticipate Mutharika would bring with him changes
to the party or its mode of operation. All the while,
government is slowly developing an identity independent of
the ruling party, a completely novel distinction in Malawi.
END SUMMARY.

UDF HEAVYWEIGHT ARRESTED FOR ALLEGED CORRUPTION
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2. (C) Just before President Muluzi's return to Malawi from a
three-week overseas holiday, the Fiscal Police, a specialized
branch of the Malawi Police Service, arrested Muluzi loyalist
and United Democratic Front (UDF) heavyweight Humphrey Mvula
on July 30 for alleged fraud and corruption. Mvula,
well-known for financing other members of Muluzi's inner UDF
circle and for leading the party's militant youth wing, was
reportedly organizing and financing Muluzi's August 1
welcome-home reception designed to "up stage" President
Mutharika. UDF Secretary General and Muluzi stalwart Kennedy
Makwangwala termed Mvula's arrest a "political witch-hunt"
and condemned government's investigation into Shire Bus
Lines, the parastatal where Mvula is CEO. Mvula has since
been released on bail, amid rumors that Muluzi loyalists in
the UDF have formed a taskforce to discredit the Mutharika
government.

CHOOSING SIDES
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3. (SBU) Two Mutharika supporters in the UDF, calling
themselves "concerned citizens," released a press statement
on July 27 castigating the "UDF big wigs" for not supporting
Mutharika. The statement also called the rumored formation
of a UDF taskforce against Mutharika "shocking and
disappointing." In response, Makwangwala issued a press
release on July 31, calling for a stop to the "outrageous"
allegations of corruption and to the "unfair" remarks about
Muluzi. The statement concluded by denying that UDF gurus
were against the President or that an anti-Mutharika
taskforce had been formed.

HEADS BUTT: NG'OMA VS. MAKWANGWALA
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4. (SBU) Tensions between Makwangwala and newly-appointed
Chief of Staff Ken Ng'oma formalized when Ng'oma reportedly
filed legal proceedings against Makwangwala for defamation.
Ng'oma, who quickly became popular with civil society and
opposition political parties for publicly denouncing the
Muluzi administration's "gross mismanagement" of public
funds, has angered many senior UDF officials with his
frankness. Makwangala, defending the UDF and Muluzi,
publicly called for Ng'oma's silence on July 30, following a
UDF National Executive Committee (NEC) meeting where it was
decided Ng'oma needed to stop "cleaning the party's dirty
linen in public."

MULUZI WARNS UPON HIS RETURN
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5. (SBU) At an August 1 rally immediately upon his return to
Malawi, Muluzi directed comments to a notably absent
Mutharika, saying "there cannot be a government led by an
independent President." Continuing his admonishment, Muluzi
said such a President would not have the support of
Parliament, and "there is no way to run government with a
disgruntled Parliament." Muluzi also declared, "Anyone who
does not have a heart for the UDF should pack their luggage
and go." In his brief address, Muluzi said he will take a
three-week national trip to "revitalize the UDF," where, he
said, he will continue his signature cash handouts, which
many UDF supporters have criticized Mutharika for ceasing.
UDF Regional Governor for the South John Chikakwiya commented
to journalists that it was "a relief to the party faithful"
to have Muluzi back in the country. Throughout the address,
Muluzi was flanked by Vice President Cassim Chilumpha, UDF
heavyweights, and members of other parties that form the
UDF's working majority in Parliament, a coalition that Muluzi
engineered.

COMMENT
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6. (C) Muluzi clearly thought Mutharika would have to yield
to him because Mutharika needed the Muluzi-orchestrated
working majority in Parliament to run government. However,
Mutharika seems confident that genuine reform will win him
enough political support in the House to implement his
agenda. With fear of corruption convictions spreading
through the UDF old guard, the ruling party's fracture will
continue to grow. Meanwhile, the leadership struggle in the
UDF, though chaotic for the party, is creating a noticeable
separation between government and the ruling party, a
distinction that did not exist during Dr. Banda's regime or
Muluzi's two terms in office.
RASPOLIC