Identifier
Created
Classification
Origin
07MASERU19
2007-01-12 12:29:00
CONFIDENTIAL
Embassy Maseru
Cable title:  

FINANCE MINISTRY INTACT DESPITE POLITICAL SHENNANIGANS

Tags:  PREL PGOV LT 
pdf how-to read a cable
VZCZCXRO6734
PP RUEHRN
DE RUEHMR #0019/01 0121229
ZNY CCCCC ZZH
P R 121229Z JAN 07
FM AMEMBASSY MASERU
TO RUEHC/SECSTATE WASHDC PRIORITY 2535
RUEHLMC/MILLENNIUM CHALLENGE CORP PRIORITY
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
RUEHMR/AMEMBASSY MASERU 2881
C O N F I D E N T I A L SECTION 01 OF 02 MASERU 000019 

SIPDIS

SIPDIS

FOR AF/S

E.O. 12958: DECL: 1/11/2017
TAGS: PREL PGOV LT
SUBJECT: FINANCE MINISTRY INTACT DESPITE POLITICAL SHENNANIGANS

REF: (A) 06 MASERU 626 AND PREVIOUS (B) 06 MASERU 560

MASERU 00000019 001.2 OF 002


CLASSIFIED BY: JUNE CARTER PERRY, AMBASSADOR, EXEC, STATE.
REASON: 1.4 (b),(d)




CLASSIFIED BY: JUNE CARTER PERRY, AMBASSADOR, EXEC, STATE.
REASON: 1.4 (b),(d)



----
Summary
----

C O N F I D E N T I A L SECTION 01 OF 02 MASERU 000019

SIPDIS

SIPDIS

FOR AF/S

E.O. 12958: DECL: 1/11/2017
TAGS: PREL PGOV LT
SUBJECT: FINANCE MINISTRY INTACT DESPITE POLITICAL SHENNANIGANS

REF: (A) 06 MASERU 626 AND PREVIOUS (B) 06 MASERU 560

MASERU 00000019 001.2 OF 002


CLASSIFIED BY: JUNE CARTER PERRY, AMBASSADOR, EXEC, STATE.
REASON: 1.4 (b),(d)




CLASSIFIED BY: JUNE CARTER PERRY, AMBASSADOR, EXEC, STATE.
REASON: 1.4 (b),(d)



--------------
Summary
--------------


1. (C) In an extremely frank January 10 discussion with
Ambassador Perry, Lesotho's Finance Minister Tim Thahane
demonstrated his underlying suspicions of Trade Minister Malie's
and Foreign Minister Moleleki's ambitions and how they might
contribute to a more unsettled national election than necessary.
Thahane brushed aside his primary election loss, charging his
candidacy to "hometown/village" supporters who had sought him
out -- not the other way around. When asked if he would
continue as the GOL's chief financial guru and overseer of the
Millennium Challenge Account's (MCA) core team in Lesotho,
Thahane asserted the Prime Minister had already asked him to
stay on if the ruling LCD party wins and that former
Communications Minister Thabane, who has formed a new "ABC"
opposition party, would also want him as Lesotho's top financial
expert. Whatever the outcome, Thahane seemed confident that his
talents and good ties to donors would be in demand. Our
observation is that the "politicos" in the Cabinet accept the
Finance Minister's recommendation out of respect for his
intellect, not out of any political ties. U.S. interest in
reducing poverty and promoting growth appears unthreatened as
long as the country's top technocrat maintains his hold, since
it appears both the ruling party and opposition are deeply
committed to quickly moving the MCA process along. End Summary.

--------------
Internal LCD Competition and Rabble Rousing Opposition
--------------


2. (C) Thahane responded to our query about potential
instability during the February 17 election by emphasizing the
importance of the international community engaging three high
profile politicians: Charismatic Foreign Minister Monyane
Moleleki, LCD Executive Secretary and Trade Minister Mpho Malie,
and former Communications Minister Thomas Thabane. He fingered

Thabane and Moleleki as spoiling for a fight. In his opinion,
Moleleki's January 2006 "assassination attempt" had never been
proved, in part because the FOMIN would still not release his
medical records nor make available his "attacked" vehicle.
(Septel to follow.)


3. (C) As we have reported, Moleleki blamed both Thabane and
the expelled Libyan Ambassador for his assault. He has ridded
himself of the Libyan Ambassador (no surprise) and is looking
for a way to prove "criminality" on Thabane's part -- a point
the FOMIN has shared with us for over a year. Thahane saw only
seeds of potential unrest in continuing loud rallies and weekly
press volleys between these two egotistical political survivors.
Malie and Moleleki, the Finance Minister alleged, were
promoting certain candidates for parliament who would form the
base for each man's political future. Thahane himself would not
have to run to remain or be re-appointed as a Minister; he could
be named to the Senate. His views about Malie's recent public
comments, that the Trade Minister was "stepping back" from
active government involvement, have been tempered by Malie's
stated interest in remaining active in the LCD. Thahane did
underscore a point ABC leader Thabane has made: The ruling
party has become too comfortable with its power and perks.
(Comment: Nevertheless, Thabane still has the disputed Mercedes
(Ref B) parked in his driveway while calling for more attention
to the poor and downtrodden Basotho. There has been a rumor in
the diplomatic community that Minister Thahane was overheard
saying he "could" support ABC Leader Thabane. End Comment)

--------------
Washington Visit and MCC Implications
--------------


4. (C) Thahane's December meetings in Washington with the
Basotho and U.S. MCC teams were described as successful. The
Minister was aware of the areas where the GOL needed to provide
additional information; he said he had received Cabinet approval
on responding. We asked if the elections would have any impact
on the work schedule. He responded that (a)the technical work
by senior level personnel would continue uninterrupted at

MASERU 00000019 002.2 OF 002


Finance and other ministries regardless of any changes, and (b)
that he expected to remain as Finance Minister in any event.
Thus, major negotiations and work would continue with little, if
any, impact on the pace of progress. He believed the Vienna
Donors Conference (mid-January) would resolve the Metolong Dam
multi-partner coordination. Regarding the elections, Thahane
encouraged continued donor engagement with political parties to
stress the importance of a smooth process during the pre and
post balloting periods.

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


5. (C)The Minister appeared to be very confident that he would
be called upon as the country's leading expert on all things
financial as the sole official with global IFI experience. We
were encouraged by his commitment to take his senior staff with
him to many international fora, thus training the next
generation of Basotho leaders in his field. Thahane had shared
with us in late 2006 his lack of desire to stand for election
and mused about completing the MCA compact by May as he
contemplated where he might be after that time. We have heard
from good sources that he may now have dual Lesotho/U.S.
citizenship, thus reinforcing his own musings about a possible
mid-year departure despite the PM's and others' offers. We
strongly recommend as accelerated an MCC process as possible to
complete due diligence and compact signing given some degree of
uncertainty regarding his personal timing, but we have also been
assured by opposition ABC leader Thabane (septel) that key donor
programs, notably the MCA, would continue apace no matter the
election results. End Comment.
PERRY