Identifier
Created
Classification
Origin
06NAIROBI284
2006-01-23 01:22:00
CONFIDENTIAL
Embassy Nairobi
Cable title:  

CORRUPTION IN KENYA: LET THE FIREWORKS BEGIN

Tags:  PGOV ECON EFIN KCOR KE 
pdf how-to read a cable
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C O N F I D E N T I A L NAIROBI 000284 

SIPDIS

SIPDIS

STATE FOR AF/E
TREASURY FOR ANN ALIKONIS

E.O. 12958: DECL: 01/09/2030
TAGS: PGOV ECON EFIN KCOR KE
SUBJECT: CORRUPTION IN KENYA: LET THE FIREWORKS BEGIN

Ref: 05 Nairobi 5103

Classified By: John F. Hoover, Economic Counselor. Reason
1.4 (d)

C O N F I D E N T I A L NAIROBI 000284

SIPDIS

SIPDIS

STATE FOR AF/E
TREASURY FOR ANN ALIKONIS

E.O. 12958: DECL: 01/09/2030
TAGS: PGOV ECON EFIN KCOR KE
SUBJECT: CORRUPTION IN KENYA: LET THE FIREWORKS BEGIN

Ref: 05 Nairobi 5103

Classified By: John F. Hoover, Economic Counselor. Reason
1.4 (d)


1. (C) Summary: It is widely expected that a newspaper
serial exposing in gory detail evidence of grand scale
corruption in the administration of Kenyan President Mwai
Kibaki will begin the week of January 22. If so, it will
likely destabilize an already fragile administration.
Kibaki appears aware of the coming storm, and has already
taken half-steps to preempt the bad news. Whether he uses
(or is forced to use) the coming revelations to at long
last enforce a semblance of political accountability within
the leadership class remains to be seen. End summary.


2. (C) Post remains in regular contact with Mugo Githongo,
the brother of Kenya's former "anti-corruption czar" John
Githongo. The latter resigned from his post in February
2005 and has been in self-imposed exile in the UK ever
since. As detailed reftel, Githongo is now ready to go
public with everything he knows about high-level corruption
in the Kibaki administration in connection with the now
infamous Anglo-Leasing scandals and other similar grand-
scale procurement scams worth hundreds of millions of
dollars.


3. (C) Mugo Githongo told Econ/C January 21 that the
Nation, Kenya's largest daily newspaper, will publish a
series of articles the week of January 22 which will reveal
the contents of his brother's extensive dossier of evidence
of wrongdoing and cover-up at the highest levels of the
Kibaki administration in 2003 and 2004. Post is privy to
the 19-page summary of the 90-plus page dossier upon which
the series will be based.


4. (C) Also privy to the summary dossier for several weeks
at least are President Kibaki and Aaron Ringera, Director
of the Kenya Anti-Corruption Commission (KACC). Seemingly
cognizant of the imminent expose, Ringera announced on
January 19 that in consultation with Kibaki, the KACC would
be re-questioning Vice President Moody Awori (under whose
Home Affairs docket the Anglo-Leasing scandals unfolded),

Finance Minister David Mwiraria, Justice Minister Kiraitu
Murungi, and former Internal Security Minister Christopher
Murungaru. All of the latter publicly proclaimed their
innocence and welcomed the opportunity to clear their
names.


5. (C) In another apparent attempt to get out in front of
the coming storm, Kibaki invited the press to an offsite on
January 19 and 20 where he lectured all ministers,
assistant ministers, and permanent secretaries on "the
imperative that you act with honesty and impartiality." At
the offsite, the assembled cabinet team will sign both
performance contracts and letters of engagement committing
them to adherence to a new KACC-drafted ministerial code of
conduct in order "to enhance collective responsibility,
ethics, and results from government."

-------------- --------------
IMF Worried, but Thinks Kibaki Will Turn it Around
-------------- --------------


6. (C) In a meeting with the Ambassador January 20,
International Monetary Fund Country Director Godfrey
Kalinga expressed dismay at the re-emergence of the Anglo-
Leasing scandal, and seemed clearly worried that Githongo's
imminent revelations will put at risk a scheduled February
22 IMF Board vote on the second review of Kenya's $325
million Poverty Reduction and Growth Facility. Kalinga the
previous day had had a long heart-to-heart meeting with
Kibaki, the upshot of which, according to Kalinga, is that
Kibaki sees the handwriting on the wall and will within one
week be asking the ministers implicated by the Githongo
dossier to step down from their jobs.

--------------
Brits Think Otherwise
--------------


7. (C) Kalinga's perspective is contradicted, however by
second-hand reports from a high-level UK delegation that
met with Kibaki on January 16. Reports from that meeting
have Kibaki evading opportunities to make a strong
commitment to adherence to the new code of conduct.
Indeed, one British High Commission contact present said
Kibaki was outright dismissive of the code. Kibaki also
indicated the government would not be releasing any time
soon the Goldenburg Commission Report, which documents the
largest scandal in the previous administration of Daniel
arap Moi, but which also apparently implicates a number of
currently prominent political figures, including Education
Minister George Saitoti.

--------------
Comment
--------------


8. (C) One way or another, it appears we are set for some
fireworks in the coming days and weeks. The Githongo
dossier will not only embarrass the Kibaki administration,
but is likely to destabilize it. While the IMF Country
Director believes Kibaki has finally seen the light and
will soon dismiss key allies in his Cabinet, we are far
less sanguine. This is indeed a golden opportunity for
Kibaki to regain public trust by dismissing suspect
ministers and going on the offensive against corruption.
If sincere in so doing, he would position himself strongly
for re-election in 2007. But Kibaki has had a number of
similarly golden opportunities to show such leadership in
the past and each time failed.


9. (C) A better bet is that Kibaki, in tandem with the
KACC's Ringera, will announce new investigations into the
Anglo-Leasing scandals as a way to placate public outrage
in the short-run, and then use the results of those hush-
hush investigations (which might be conveniently delayed
for many months) to exonerate members of his administration
in the long-run. For many, this won't be enough nor
should it be. If Kibaki again refuses to instill political
accountability by dismissing suspect ministers, then Kenya
could be headed for yet another severe bout of political
instability, dysfunctional governance, and donor dismay.
BELLAMY