PRESIDENT FIRES SENIOR MINISTER, WEAKENS

C O N F I D E N T I A L LILONGWE 000773

SIPDIS

STATE FOR AF/S
STATE FOR INR/AA

E.O. 12958: DECL: 09/06/2010
TAGS: KDEM PGOV TBIO MI
SUBJECT: PRESIDENT FIRES SENIOR MINISTER, WEAKENS
GOVERNMENT COALITION

REF: LILONGWE 649

Classified By: Ambassador Alan Eastham for reasons 1.4 (b) and (d)


1. (SBU) Summary: Irrigation and Water Development Minister
Gwanda Chakuamba, one of the most powerful politicians in
Malawi, has left the government. As a head of a governing
coalition partner, he could take some of the 15 MPs from his
Republican Party (RP) out of government with him,further
weakening an already shaky coalition. Chakuamba, who has
been at the center of a number of corruption accusations, had
already decided to resign when the President preemptively
fired him September 7th. End Summary.

CHAKUAMBA AND MUTHARIKA
--------------


2. (C) Chakuamba, who has also been serving as the
Vice-President of President Mutharika's Democratic
Progressive Party (DPP),had come in third in 2004's
Presidential election. He then joined a government coalition
with the understanding that RP members would receive a set
number of Ministerial positions, Ambassadorial posts, and
parastatal board slots. Mutharika has continually failed to
meet the terms outlined in that and other agreements with
Chakuamba over decision making in government and the DPP.


3. (C) In August 2004 Chakuamba was demoted from Minister of
Agriculture (Reftel) to Minister of Irrigation and Water.
This dropped him from the number three position to number
five in Cabinet. Chakuamba has not been happy about the
demotion, and on Monday September 5 told the Minister of
Finance that he was planning to quit. (Note: Though demoted,
Chakuamba was able to keep the $150,000 car he bought for
himself as agriculture minister. The press has reported that
the change of license plate number from MG 3 to MG 5 was
another irritant to Chakuamba. End note.)

CHAKUAMBA AND CORRUPTION
--------------

4. (C) Shortly after his appointment as Agriculture Minister
in mid-2005, Chakuamba went to South Africa to investigate
the possibility of a GOM purchase of maize for the
anticipated hunger crisis. He was abruptly called back from
this mission, amid allegations that he had been negotiating a
deal for his personal profit. The allegations have not been
substantiated, but no grain deal ensued from his trip.


5. (SBU) A second story revolves around Chakuamba's alleged
purchase of a $150K BMW with drought-relief money. The
Anti-Corruption Bureau is investigating Chakuamba's purchase,
while he was Minister of Agriculture, of the BMW for personal
use. The Malawian press has made a controversy of the car,
pointing out that $150K would feed thousands of Malawians
through this year's food crisis.

POLITICAL REPERCUSSIONS
--------------

6. (SBU) While he is not an MP, Chakuamba brought the 15
Republican Party MPs into the government coalition last year.
However, RP Caucus Chair Aaron Sangala told Embassy
officials that the 15 RP MPs are still officially a part of
government. He says they will remain so at least until their
caucus the week of September 19th, when the party will decide
what course to follow.


7. (U) Former Deputy Minister for Transport and Public Works
Sidik Mia has been appointed the new Minister of Irrigation
and Water Development. Mia had previously served as the
Deputy Minister. Rashid Gaffar, MP from Blantyre, will
replace Mia at the Ministry of Transport.

COMMENT
--------------


8. (C) While one source says at least 13 of the 15 MPs will
resign from government, it remains to be seen how many RP MPs
will follow Chakuamba out of government. A number of the MPs
are in Deputy Minister or Minister positions, and it is
doubtful they would give up the salaries and perquisites of
high government office. If a significant number of RP MPs
were to leave government, it could cause major headaches for
Mutharika's already small coalition in Parliament.


9. (C) After Chakuamba's decision to quit, Mutharika had
little choice but to fire him. However, it seems that with
even rudimentary political finesse the entire situation could
have been avoided. End Comment.
EASTHAM