Identifier
Created
Classification
Origin
08LUSAKA441
2008-04-17 12:16:00
CONFIDENTIAL
Embassy Lusaka
Cable title:  

GRZ (STILL) DELIBERATING ON CRITICAL

Tags:  KCOR PGOV PREL KMCA ZA 
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VZCZCXRO0639
PP RUEHDU RUEHMR RUEHRN
DE RUEHLS #0441 1081216
ZNY CCCCC ZZH
P 171216Z APR 08
FM AMEMBASSY LUSAKA
TO RUEHC/SECSTATE WASHDC PRIORITY 5717
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHLMC/MILLENNIUM CHALLENGE CORP 0067
RUEATRS/DEPT OF TREASURY WASHDC
C O N F I D E N T I A L LUSAKA 000441 

SIPDIS

SIPDIS

STATE FOR AF/S
TREASURY FOR OTA/ENF

E.O. 12958: DECL: 04/15/2022
TAGS: KCOR PGOV PREL KMCA ZA
SUBJECT: GRZ (STILL) DELIBERATING ON CRITICAL
ANTI-CORRUPTION MEASURES

REF: A. 07 LUSAKA 537

B. 06 LUSAKA 985

Classified By: Ambassador Carmen Martinez for Reasons 1.4(b) and (d)

C O N F I D E N T I A L LUSAKA 000441

SIPDIS

SIPDIS

STATE FOR AF/S
TREASURY FOR OTA/ENF

E.O. 12958: DECL: 04/15/2022
TAGS: KCOR PGOV PREL KMCA ZA
SUBJECT: GRZ (STILL) DELIBERATING ON CRITICAL
ANTI-CORRUPTION MEASURES

REF: A. 07 LUSAKA 537

B. 06 LUSAKA 985

Classified By: Ambassador Carmen Martinez for Reasons 1.4(b) and (d)


1. (C) Summary. In a wide-ranging conversation with DCM and
Poloff on anti-corruption topics, Cabinet Secretary Kanganja
noted little progress on anti-money laundering, but said that
Cabinet is currently considering a National Anti-Corruption
Policy, as well as guidelines governing the use of seized
assets. Although Kanganja is seemingly conversant with, and
committed to, fighting corruption, his anti-corruption status
reports are mere reiterations of what he and other GRZ
officials have communicated for the past years and lend truth
to rumors that senior members of Mwanawasa's government do
not share his interest in fighting corruption. End Summary.


2. (U) On April 10, DCM and Poloff met with Secretary to the
Cabinet Joshua Kanganja to discuss Zambia's anti-corruption
strategy, areas of U.S. cooperation, and the status of key
legislation. The DCM shared Mission views on what an
effective anti-corruption strategy should include, such as a
capacity to combat financial crime, public sector financial
management accountability, and judicial reform. He also
pointed to the need for new legislation, including asset
disclosure, freedom of information, asset forfeiture, plea
bargaining, whistleblower protection, anti-money laundering
(AML),and procurement laws. The DCM emphasized that
Zambia's access to the Millennium Challenge Account and its
success in attracting foreign investment are directly linked
to its performance on anti-corruption.


3. (SBU) Kanganja acknowledged USG assistance in drafting
anti-corruption legislation, but admitted that he had not yet
seen the bills. Regarding AML, Kanganja said "we are already
working on it" and pointed to the re-activation of an
inter-agency working group. Kanganja said that the Ministers
of Finance, Home Affairs, and Justice were reviewing the
adequacy of Zambia's existing AML law and whether the
Financial Investigations Unit, located at the Drug
Enforcement Commission (DEC),rules out the need for a
Financial Intelligence Unit (FIU). The DCM underscored the
need for an internationally compliant AML regime and pointed
out that, due to lack of GRZ progress, the USG had not
renewed the contract of a USG resident advisor offering AML
technical assistance. (Note: The DEC's Financial
Investigations Unit is an enforcement unit that does not
perform the full functions of an FIU. It has little access
to banking information, and lacks officers capable of
analyzing financial data. End Note.)


4. (SBU) Kanganja said that the National Anti-Corruption
Policy had been presented to Cabinet for approval, but had
been withdrawn in order for the Minister of Justice to make
revisions. (Note: The Policy was submitted to Cabinet in
January 2007, according to UK diplomats. End Note.)
Kanganja projected that it would be resubmitted presently.
The DCM said that he hoped the document would include
provisions for enacting new laws and for implementing the
United Nations Convention Against Corruption. Kanganja
affirmed that it would. He also remarked that the Cabinet
would shortly approve a policy governing the use of seized
assets. He said that the Task Force on Corruption had seized
assets in Zambia valued at approximately USD 3.5 million and
that the funds would be applied to projects of public
benefit. (Note: Per ref B, Kanganja made similar promises
to Ambassador in a meeting on asset disposal almost two years
ago, in which he said the GRZ was doing "all it could" to
dispose of the assets quickly. End Note.)


5. (C) Comment: Although Kanganja appears to be conversant
with, and committed to, fighting corruption, his status
reports--that the GRZ is still deliberating--are mere
reiterations of what GRZ officials have communicated over the
past years (see reftels). Until these key anti-corruption
measures are implemented, it will continue to appear that the
GRZ is better at telling donors what they want to hear, than
making needed progress. These delays also lend credence to
rumors that senior members of Mwanawasa's government do not
share his commitment to fighting corruption and are, for
example, profiting from the rental incomes of seized
properties in affluent Lusaka neighborhoods. It is
disappointing--and perhaps telling--that these measures,
which require little more than political will to be
implemented, are languishing.
MARTINEZ