LEADERSHIP GAP IN ECONOMIC MINISTRIES

UNCLAS KINSHASA 001658 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EFIN ECON PINR PGOV PDEM KCOR CG ELECTIONS SUBJECT: LEADERSHIP GAP IN ECONOMIC MINISTRIES REF: A. KINSHASA 1616 ¶B. KINSHASA 1465 ¶C. KINSHASA 1448 ¶1. (SBU) In its final months, the transitional government is facing a large economic leadership void. On October 14 a presidential decree announced several new ministers and vice ministers, as well as the resignation of numerous parastatal managers. All positions affected are held by factions of the transitional government other than those loyal to President Kabila, as his factions' nominees were approved October 11 (reftel A). All the ministry changes are to fill vacancies left by those elected to the National Assembly, as noted in reftel B. While some of the resigning parastatal officials are also accepting National Assembly seats, some removals appear to be to create vacancies that political factions can give out as last-minute political plums. These moves will cost the GDRC significant sums it can ill afford. ¶2. (U) The list of appointments and resignations is noteworthy more for its size and impact than for the inclusion of any particular person. The decree names 16 new ministers (of 36 ministries) and 12 vice ministers, and announces the resignation of 26 managers from 21 parastatals (reftel A). When combined with October 10 nominations, the changes impact all but one of the ten Economic-Financial Commission (EcoFin) ministries under Vice President Jean-Pierre Bemba's responsibility. (The lone exception is the Ministry of Trade,) ¶3. (U) The appointees in key economic and financial ministries: Ministry of Plan: Minister Gerard Ntumba (MLC) Ministry of Budget: Minister Jean-Claude Molipe (MLC) Vice Minister Kena wa Tshimanga (RCD-G) Ministry of Economy: Minister Moise Nyarugabo (RCD) Ministry of Mines: Minister Mathieu Kalele Kabila (political opposition) Ministry of Portfolio:Minister Balamage Nkolo (RCD-G) Vice Minister Leonard Kahenga (MLC) Ministry of Public Administration: Minister Charlotte Twamba Anzelani (civil society) Ministry of Agriculture: Minister Romain Nimy (MLC) Ministry of Energy: Minister Augustin Ngozi Ngolu (PPRD) Ministry of Finance: Minister Gaby Bolenge (MLC) ¶4. (U) Resignations among government agencies and parastatals include: the CEEC (diamond evaluating authority),OFIDA (customs authority),SONAS (monopoly insurance parastatal), COHYDRO (petroleum parastatal),OCPT (Office of Post and Telecommunications),SNEL (electricity parastatal),OKIMO (gold mining parastatal) and REGIDESO (water authority). ¶5. (SBU) The changes will negatively affect already extremely loose fiscal discipline and the DRC's over-stretched budget. The only notable continuity is at the Ministry of Finance; Minister Marco Banguli, who did not win a National Assembly seat, will continue in his post, but he will have a new Vice Minister. In addition to having lame-duck officials with little experience, the cost of providing mandatory severance packages to the departing officials will be high. Each is entitled to severance compensation equal to six months salary, plus a variety of other benefits. (Note: Ministers official base salaries are USD 4000 per month, Vice Ministers receive about USD 3000 per month, while the salaries of parastatal managers are as high as USD 10,000 per month. End note.) ¶6. (SBU) Comment. The last-minute reshuffling will have a negative impact on an already shaky government budget. It will both weaken already weak ministries and enable appointees from the various transitional factions to grab what they an in the final weeks of the transitional government. End comment. MEECE