SURPRISING ZAMBIAN CABINET SHUFFLE

C O N F I D E N T I A L SECTION 01 OF 02 LUSAKA 000492

SIPDIS

C O R R E C T E D C O P Y (CLASSIFIED BY LINE)

SIPDIS

E.O. 12958: DECL: 04/24/2017
TAGS: PGOV PINR ZA
SUBJECT: SURPRISING ZAMBIAN CABINET SHUFFLE

REF: A. LUSAKA 448

B. LUSAKA 246

C. 06 LUSAKA 1407

LUSAKA 00000492 001.4 OF 002


CLASSIFIED BY: AMBASSADOR MARTINEZ REASON 1.4 B & D


1. (C) Summary. President Mwanawasa announced several
changes to Cabinet Minister appointments on April 23, only
seven months into his second term of office. The greatest
shock was the removal of Angela Cifire as Minister of Health.
Cifire will be replaced by Brian Chituwo, who previously
served as Health Minister and Education Minister in
Mwanawasa's first term. Mwanawasa also announced that Deputy
Foreign Minister Mike Mulongoti would fill the vacant
Minister of Information and Broadcasting Services position
held by Vernon ("V.J.") Mwaanga, who was sacked earlier in
the month (Ref A). The President also swapped the portfolios
of the Ministers of Commerce, Trade and Industry with
Energy and Water, and named a new Minister of Science and
Technology, and Minister of Gender and Women in Development.
Although the naming of a new Information Minister was
anticipated, the other changes surprised and mostly
disappointed many observers in Zambia. The USG loses a
hardworking partner in Cifire's sacking and an effective
Foreign Ministry contact with Mulongoti's promotion; however,
Chituwo is well and favorably known to us, and we expect the
new Commerce, Trade and Industry Minister to be a strong
collaborator on Millennium Challenge Account issues. End
summary.

Announcement of Cabinet Changes: A Complete Surprise


2. (U) In an unexpected announcement made on the evening of
Monday, April 23, President Levy Mwanawasa dropped his
charismatic Minister of Health Angela Cifire, replacing her
with Dr. Brian Chituwo, who served most recently as Minister
of Science and Technology, after having been both Education
and Health Minister. The President named Deputy Foreign
Minister Mike Mulongoti to succeed sacked Minister of
Information and Broadcasting Services Vernon (V.J.) Mwaanga,
noting the tremendous confidence he had in Mulongoti's
ability and leadership qualities.


3. (U) In a direct job swap, the President appointed Felix
Mutati to be Minister of Commerce, Trade and Industry and
Kenneth Konga to be Minister of Energy and Water. He named
Minister of Communications and Transport Peter Daka to
replace Chituwo as Minister of Science and Technology,
Minister of Gender and Women in Development Sarah Sayifwanda
to replace Daka, and promoted Deputy Minister of Youth,
Sports and Child Development Patricia Mulasikwanda to replace
Sayifwanda. The two Deputy Minister positions, at Foreign
Affairs and at Youth, Sports and Child Development, were not
filled.


4. (SBU) Local papers carried quotations from letters of
appointment that suggest areas for priority attention. For
example, the President's letter to Brian Chituwo asked the
new Health Minister to "ensure that abolition of user fees
(for basic health services) did not result in the
deterioration of the quality of health care currently being
provided in the rural areas." The letter also directed
Chituwo to make sure that medicines and other medical items
were procured efficiently and transparently, to avoid
shortages of critical drugs in health institutions, and to
"ensure that an attractive reward package for core clinical
staff, namely, doctors, nurses, pharmacists and laboratory
technologists is put in place" to attract staff to work in
rural areas. Comment: Many of the President's requests on
health issues require extra resources that are not available.
End comment.


5. (SBU) The President highlighted the importance of
"internal trade" and citizen's economic empowerment to the
new Minister of Commerce, Trade and Industry, Felix Mutati,
who, prior to being Minister of Energy and Water, was Deputy
Minister of Finance. He asked Kenneth Konga to devote
attention to the Rural Electrification Program to improve
access to electricity around the country, to address with
urgency the need to make parastatal oil refinery Indeni
operated more profitably and efficiently, and to expedite
ongoing expansion programs for hydroelectric power
generation. He also encouraged the new Minister of
Communications and Transport Sarah Sayifwanda to conclude
speedily the matter of establishing a national airline, to
ensure that the private concession Railway Systems of Zambia
performed "to expectations," and to finalize a Cabinet
(decision) memorandum on the liberalization of the
international voice gateway (IVG). Comment: Aside from the
IVG liberalization, the other tasks mentioned by the
President focus on the continuation or expansion of
government control of the economy, with negative implications
for private sector development. End comment.


LUSAKA 00000492 002.4 OF 002


A Mystery--Why Drop Cifire?


6. (C) Mwanawasa announced his second term Cabinet lineup in
October 2006 (Ref C),and seven months into the term seems
early to be making so many changes, following two prior
dismissals, with cause (Refs A, B). Cabinet Ministers told
the Ambassador that they too were stunned by the President's
announcement. Angela Cifire's dismissal in particular is
surprising, puzzling and disappointing. The President
offered no explanation for dropping her as Health Minister,
but it is possible that he might comment further when he
swears in the new Ministers. Cifire was highly regarded by
the Diplomatic Corps. She has been a vocal critic of
mismanagement in the Ministry and over time could have helped
to effect needed reforms. On April 19, at Livingstone
General Hospital, Cifire made widely-publicized comments
chastising Health Ministry personnel over their abuse of
grants, allowances and other emoluments. At an event with
the Ambassador on April 20, Cifire echoed these concerns, and
noted that she would not accept such payments herself. She
also expressed frustration at the inability of the Ministry
to provide basic maintenance on health facilities provided by
donors. Such outspokenness could be one reason for her
demise.


7. (C) Another possible scenario is that she confronted the
Permanent Secretary of Health, Simon Miti, with concerns
about inefficiencies, or worse, malfeasance. The Auditor
General and Miti have recently battled very publicly over
Miti's possible mismanagement of public resources and his
refusal to cooperate with the Auditor General's office on a
required annual audit. Miti serves as personal physician to
the President, has strong connections to and influence with
the First Lady and State House, and has long been rumored
(but never proved) to be involved in corrupt dealings with
health funds. He would be the likely victor in any power
struggle (although he reportedly had a stalemate with former
Minister of Health Sylvia Masebo, who has her owns strong
base of political support at State House). Cifire had
already caused Miti some embarrassment by opening major
meetings (including several with donors) without him when he
was tardy. Cifire's successor, Dr. Brian Chituwo, is
well-regarded and has already proved himself a capable Health
Minister. However, he is not politically strong, and will
not be in a position to take on the Permanent Secretary.

A Big Opportunity--Mutati


8. (C) Felix Mutati is bright, articulate, and extremely
competent. Although Mutati's departure from the Ministry of
Energy and Water will likely result in less pressure on
electricity parastatal ZESCO to improve its performance
(under the amiable but ineffectual Kenneth Konga),his
presence at Commerce, Trade and Industry means the USG has a
stronger partner to engage with on implementation of the
Millennium Challenge Account Threshold Program, particularly
in dealing with the new Zambia Development Agency.

A Loss at Foreign Affairs--Mulongoti


9. (C) Mike Mulongoti is a knowledgeable and proactive
interlocutor, and has been the Mission's principal high-level
point of contact at the Foreign Ministry since his
appointment last year. Foreign Minister Sikatana is
mercurial and prone to incoherent rambling. Mulongoti's
departure will leave a vaccum at the top levels of MFA, but
he will be a useful "inner circle" contact in the Cabinet.
He is a solid choice for the Information Minister position:
he is not only a skilled speaker, but also a consumate
politician with sterling MMD credentials.


MARTINEZ