TANZANIA: AS CORRUPTION SCANDALS SWIRL, GOLDEN

C O N F I D E N T I A L SECTION 01 OF 04 DAR ES SALAAM 001500

SIPDIS

SIPDIS

DEPT FOR AF/E MBEYZEROV, AF/RSA FOR MHARPOLE
AID WASHINGTON FOR AF OFFICE
MCC FOR KFICKENSCHER, MKAVANAGH
LONDON AND PARIS FOR AFRICA WATCHERS

E.O. 12958: DECL: 11/08/2017
TAGS: PGOV PREL TZ
SUBJECT: TANZANIA: AS CORRUPTION SCANDALS SWIRL, GOLDEN
BOY'S LUSTRE DIMS

REF: A. DAR ES SALAAM 1267

B. DAR ES SALAAM 1037

C. DAR ES SALAAM 1009

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Classified By: Deputy Chief of Mission D. Purnell Delly for
reasons 1.4 (b) and (d).


1. (SBU) Summary: Confronted with a rising tide of
corruption allegations, and government refusal to addrss
them, opposition anger has erupted here in a series of bold
corruption charges leveled at some of the most senior figures
in Kikwete's administration. Over the past several weeks,
frustration has also been building among the Tanzanian
electorate, as opposition leaders, the media, and even a
handful of respected "old guard" ruling party members have
called for the resignation of those accused, including the
Minister of Energy, Minister of Infrastructure, and the
Governor of the Bank of Tanzania. President Jakaya Kikwete
has remained surprisingly silent in the face of these
allegations, and lack of genuine action is beginning to take
a toll on his popularity, and the patience of donors. End
summary.

The "List of Shame"
--------------


2. (SBU) In the midst of the fallout created by suspension of
opposition Member of Parliament Kabwe Zitto (Ref A),the
Parliament's deputy opposition leader, Dr. Wilbrod Slaa, and
other opposition leaders began to make bold corruption
allegations against senior GOT officials. On September 15,
Dr. Slaa, who is also Secretary General of the CHADEMA party,
presented the "List of Shame" at a packed rally in Dar es
Salaam. With the list, Slaa and other opposition leaders
presented detailed accusations of grand corruption against
eleven senior GOT officials, and assured the public that they
had sufficient evidence to prove their claims.


3. (U) Those named in the "List of Shame" were: President
Jakaya Kikwete; former President Benjamin Mkapa; Prime
Minister Edward Lowassa; Minister of Energy and Minerals
Nazir Karamagi; Minister of Infrastructure Development Andrew
Chenge; Minister of Industry, Trade, and Marketing Basil
Mramba; Bank of Tanzania Governor Daudi Balali; Member of
Parliament and CCM Treasurer Rostam Aziz, Member of
Parliament Nimrod Mkono; Ministry of Finance Permanent
Secretary Gray Mgonja; and Ministry of Water Permanent

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Secretary Patrick Rutabanzibwa. The list described

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embezzlement of USD 1 billion through the use of false
contracts, shell companies, bribery, nepotism in awarding
contracts, land grabbing, and other corrupt practices in
deals involving a total of USD 3 billion.

Bold Move by One Newspaper
--------------

4. (SBU) Early media coverage described the rally and the
nature of the opposition's allegations, but did not publish
the names of the officials involved, citing legal concerns.
(Note: Members of the press told Embassy officials privately
that they feared that a provision of Tanzania's recently
enacted anti-corruption law would be interpreted to penalize
them if they published the allegations. End note.) However,
on September 19, a local Swahili newspaper published the list
in its entirety, and in doing so opened the floodgates to a
torrent of press reporting on grand corruption at the highest
levels of Tanzanian government that has continued for almost
eight consecutive weeks.

CCM Reaction: Denials, Jibes, and Threats
--------------

5. (SBU) The ruling Chama Cha Mapinduzi (CCM) party
immediately responded to the opposition's allegations with
indignation and hostility. At a September 18 press
conference, Minister of State for Political Affairs and Civil
Society Relations Kingunge Ngombale-Mwiru warned the
opposition against "making statements... with the pure aim of
inciting the public against their elected government." He
added: "Opposition officials are forgetting that the freedom
they are enjoying is not available in other countries. It is

DAR ES SAL 00001500 002.2 OF 004


in Tanzania where they can today say and do what they want
because CCM is tolerant." Other cabinet level officials
released similar statements, insisting that the accusations
were intended to incite hatred and weaken national unity, and
decrying the opposition as powerless and "without mandate."QfL'qQ?QfOfficials from President Kikwete down have repeatedly told
critics that anyone possessing evidence of wrongdoing should
report it immediately to the Prevention and Combating of
Corruption Bureau (PCCB),where investigations will be
initiated. (Note: Within the past week, the Director of
PCCB, Edward Hosea, has himself been the subject of
corruption allegations. Moreover, among the individuals
named in the "List of Shame" are officials on the list of
"untouchables" whom PCCB leaders have privately told the
Embassy they are forbidden to prosecute, such as former
President Mkapa (Ref B). End note.) Prime Minister Edward
Lowassa told crowds at a CCM rally that individuals named by
the opposition "have the option" to step down during
investigations, but would be considered innocent by the
government unless proven guilty.


7. (SBU) CCM also began to counter the allegations through a
nationwide series of rallies. The party has taken advantage
of the timing of external events, such as the release of the
new Transparency International corruption perception index
(which saw Tanzania rise to a more favorable ranking),and
announcement of various forms of donor support (including the
Millennium Challenge Compact),in an attempt to assure the
public that the international community views Tanzania as
largely free of graft. (Note: We attribute the modest rise
in Tanzania's corruption index to two factors: press
reticence to publish allegations of corruption which has
given way to a much more open press environment and therefore
greater corruption reporting over the past year; and, the
resulting lag in the indicator. These indicators measure
perception, and what we have seen unequivocally here over the
past year is a deepening cynicism on corruption among not
only donors, but Tanzanians on the street. End Note.)


8. (SBU) In the weeks that followed the publication of the
list, several of the accused announced that they planned to
sue Dr. Wilbrod Slaa or anyone else who made false
allegations against them for defamation. Slaa responded by
welcoming the opportunity to prove his claims in court. To
date, none of the accused have filed suit.

Kikwete Reaction: No Response, Avoids Press
--------------

9. (C) On the same day the opposition released the "List of
Shame," President Kikwete departed Tanzania for his two and a
half week trip to the U.S. Despite public speculation that
he might cut his trip short to attend to the growing discord,
he remained abroad and did not respond to any allegations.
Upon his Oct. 3 return, he uncharacteristically refused to
speak to reporters who met him at the airport. He also
seemingly disregarded the expectation that he address the
allegations against him at a State House press conference,
and remained silent.


10. (SBU) On October 11, ten days after his return from New
York, President Kikwete addressed the general allegations of
corruption (although not those specifically leveled against
him). Speaking at a church fundraiser, he warned the
Tanzanian people, and especially politicians, against
"turning themselves into spies, investigators, prosecutors,
and judges," claiming that this would lead the country toward
instability. Kikwete stated that he was personally taking
action against corruption in Tanzania, including corruption
in his party, and that each allegation of corruption would be
thoroughly investigated in accordance with Tanzanian law.
(Note: Three CCM members of parliament have been turned over
to be investigated by the PCCB for their involvement in
corrupt practices during recent internal CCM party elections.

DAR ES SAL 00001500 003.2 OF 004


End note.)


11. (SBU) Three days later, Kikwete appeared to pass the buck
on tackling corruption to the PCCB. During an Arusha rally,
Kikwete told crowds that the PCCB is "at liberty to
investigate and arrest anybody. If they don't, then it will
be their own weakness. I have nothing to do with that."
After returning from Italy and France on October 24, he did
not address the issue until the CCM Congress on November 3.
There, in an address to CCM and opposition politicians
broadcast nationwide, President Kikwete reiterated that CCM
was not a party that would tolerate corruption, and that his
administration was committed to addressing the issue.

Public Reaction: Disappointment, Frustration, Signs of Dissent
-------------- --------------

12. (SBU) For several weeks following the release of the
"List of Shame," the media focused on the unfolding drama
between accusers and accused, while the public appeared to
reserve judgment until the President spoke out or announced a
plan of action. However, in the absence of any action,
public sentiment has turned increasingly negative. An
opposition alliance urged the President to order those
accused to step down in order to allow investigations to take
place; many civil society groups have voiced similar views.
In the press, headlines lamenting corruption in government
(e.g., "Nation sinking deeper into graft," "Graft: The major
bane of Tanzania") have become commonplace. At nationwide
rallies, CCM leaders have received a less-than-positive
response to their "innocent until proven guilty" rhetoric,
with crowds in Mbeya booing Prime Minister Lowassa at one
such rally.


13. (SBU) On the October 14 anniversary of the death of
founding president Julius Nyerere's death, crowds at memorial
events carried placards calling on the GOT to follow the late
president's example as ethical leader, and media coverage of
the anniversary bemoaned the nation's current problems with
corruption. On the same date, a respected former aide to
Nyerere, Joseph Butiku, decried corruption within the GOT,
and called on those named on the "List of Shame" to resign.
The late president's son, Makongoro Nyerere, also voiced
concerns about the allegations against the current
leadership. In the past, this anniversary has been an
occasion to evaluate the country's progress, but never before
has the assessment been so dour.

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

14. (C) Initially playing on outcry over the suspension of MP
Kabwe Zitto, the Parliamentary opposition has successfully
unleashed the public's frustration over corruption in the
ruling party. While it remains unclear whether this
frustration will translate into support for opposition
candidates in the next elections, it is very clear that CCM
will not be able to silence allegations against senior
government leaders and anger over perceived misuse of public
resources unless the party either a) takes action against
corruption at the highest levels of government, or b) resorts
to forms of censorship and/or intimidation of the press that
will not be received well by the electorate. We do not
expect to see President Kikwete resort to the latter; indeed,
he has been responsible for fostering a far more robust press
environment than his predecessor, Benjamin Mkapa. We have
praised him for this.



15. (C) Kikwete is now in a position where he must either
confront his allies for their corrupt practices (which could
open him and his party to further allegations),or confront
an electorate that increasingly disillusioned in him and his
government. Kikwete, indeed, is at a turning point, not only
with his electorate, but with donors (which we will report
septel). At the CCM Congress on November 3, Kikwete spoke
out strongly against graft in his own party, and engineered a
reshuffle of the CCM Central Committee (the party's most
powerful organ). In the last several days, there has been
modest movement on at least one high-profile corruption case,
and Parliamentary interest in opening a public inquiry into

DAR ES SAL 00001500 004.2 OF 004


another. But rhetoric and modest steps are one thing, and
genuine resolve to fight corruption and punish perpetrators
is another. We will know the latter when we see it, and so
will the Tanzanian people; and we have not seen it yet.
GREEN