PRIME MINISTER MITCHELL RESHUFFLES GRENADA CABINET

C O N F I D E N T I A L BRIDGETOWN 000581

SIPDIS

SIPDIS

STATE FOR WHA/CAR
SOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 05/10/2017
TAGS: ECON ELAB GJ PGOV PREL
SUBJECT: PRIME MINISTER MITCHELL RESHUFFLES GRENADA CABINET

Classified By: DCM Mary Ellen T. Gilroy for reasons 1.4(b) and (d).


1. (C) SUMMARY: At a May 6 New National Party (NNP) rally,
Prime Minister Keith Mitchell announced a change in several
cabinet portfolios, including the creation of a new ministry,
effective May 15. He did not call parliamentary elections,
as had been widely expected. His decision caught the
opposition National Democratic Congress (NDC),which had been
preparing for new elections, by surprise. The cabinet
reshuffle may bring some welcome changes to Grenada's
government, especially in the areas of economic development
and trade. END SUMMARY.


2. (C) Although Grenada's elections are not constitutionally
due until November 2008, rumors were rife that Mitchell would
call elections shortly after Cricket World Cup (CWC),
assuming it was a resounding success. With the CWC generally
viewed as a disappointment in Grenada and the region,
combined with increasing gasoline prices and the looming
reinstatement of the unpopular value added tax on October 1,
Mitchell revised his strategy and settled for plan B, a
cabinet reshuffle. He made his announcement at a May 6 NNP
rally, surprising many Grenadians, and especially the
opposition NDC.


3. (C) Having completely misread the political tealeaves,
the NDC had spent the previous several weeks preparing for
early elections. NDC leadership has been hammering away at
the Mitchell government for its alleged failures, including
the CWC. Their miscalculation and surprise were the likely
cause of their nearly 24-hour "radio silence." When the NDC
finally recovered, they tried to spin the cabinet reshuffle
as a "reflection of a deepening crisis within the
government."


4. (U) Mitchell's cabinet reshuffle and the creation of a
new ministry will take effect on May 15, 2007. The new
cabinet line-up is as follows (Note: A copy of the new
cabinet portfolios was e-mailed to WHA/CAR and Embassy
Bridgetown on May 9. End Note.):

a) Prime Minister Mitchell will also serve as the Minister
for Finance. Mitchell did not say whether he will appoint a
junior minister to run the day-to-day operations at the
Finance Ministry, as he has done with the two other
ministries in his portfolio, national security and youth
development. (Comment: Neither of the current two junior
ministers in the PM's Ministry appear to be qualified to
handle Finance. End Comment.)

b) Brenda Hood: Minister of Communication, Works and
Transport (formerly Minister of Tourism, Civil Aviation,
Culture and Performing Arts).

c) Clarice Modeste-Curwen: Minister of Tourism, Civil
Aviation, Culture and Performing Arts (formerly Minister of
Communication, Works and Transport).

d) Elvin Nimrod: Minister for Foreign Affairs, Attorney
General, and Minister for Carriacou and Petit Martinique
Affairs. He will lose the Ministry of Legal Affairs, and his
International Trade portfolio will move to the newly created
Ministry of Economic Development and Planning.

e) Claris Charles: Minister for Education and Labour will
add the Ministry of Legal Affairs to her portfolio (also the
NNP Secretary).

f) Einstein Louison: Minister in the Prime Minister's
Ministry (i.e., Junior Minister) with responsibility for
National Security. He loses the Business and Private Sector
Development portion of his portfolio to the new Ministry of
Economic Development and Planning.

g) Anthony Boatswain: Minister for Economic Development and
Planning (former Minister of Finance). His newly created
ministry will handle: business and private sector
development, domestic and international trade, and
concessions. It will incorporate the Grenada Industrial
Development Corporation (GIDC),the Micro Enterprise Unit,
and the Physical Planning Unit from the former Ministry of
Finance.

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

5. (C) Facing a string of unfavorable economic news,
Mitchell calculated that he would have a hard time holding on
to his one seat majority in parliament if he called early
elections. Catching the opposition flat-footed will give
Mitchell some reprieve, especially since the NDC spent so
much political capital convincing their supporters that early
elections were inevitable. The cabinet reshuffle may also
bring some welcome changes. Assuming the creation of the new
Ministry of Economic Development and Planning is well thought
out and implemented, having a minister focused on trade and
economic development issues could be a positive development.
Several local business leaders have told Charge that they
would love to see clearer standards for planning purposes, as
well as consistent enforcement. Boatswain is well regarded
and considered to be relatively honest and fair, but he is
also quite shy. He has a reputation for being incorruptible,
which should be an asset, but it remains to be seen whether
he can not only assume control of the undoubtedly lax
physical planning unit, but bring it up to snuff.


10. (C) The stated reason for reducing Elvin Nimrod's
responsibilities was to allow him to devote more time to
Carriacou and Petit Martinique affairs (his home
constituency). When trade was part of Ministry of Foreign
Affairs, there was one trade officer who tried to do
everything, not very successfully, and Nimrod was not
especially interested. He may also not have liked the
managerial aspects of running the Ministry of Legal Affairs.
He is, however, a lawyer, which Claris Charles is not, and so
retains the Attorney General (AG) position. There have been
a number of snide comments made on local talk shows that
Nimrod will actually let Special Advisor to Cabinet Hugh
Wildman do all the AG work. Mitchell tried to appoint
Wildman, a Jamaican by birth but citizen of Grenada, as AG
last year but was rebuffed by Parliament. (Note: Wildman is
in the final stages of receiving a U.S. immigrant visa in
Kingston. End Note.) Claris Charles has demonstrated
excellent managerial ability at the Ministry of Education and
Labour. She is very dynamic and likes a challenge. Charles
is disliked in some quarters for being too strong a woman and
she can be abrasive. However, she is probably the most
competent minister Mitchell has.
OURISMAN