PRESSING FOR PROGRESS ON ANTICORRUPTION FRONT

C O N F I D E N T I A L SECTION 01 OF 02 LUSAKA 000020

SIPDIS

E.O. 12958: DECL: 01/07/2019
TAGS: KCOR SNAR PGOV ZA
SUBJECT: PRESSING FOR PROGRESS ON ANTICORRUPTION FRONT

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Classified By: Ambassador Donald Booth for Reasons 1.4(b) and (d).


1. (SBU) Summary: At long last, the Zambian Government
(GRZ) is addressing several important anti-corruption issues,
such as the establishment of a Financial Intelligence Unit
(FIU),the enactment of anti-corruption legislation, and the
approval of a national anti-corruption strategy. In a
January 7 meeting with the Ambassador, lead anti-corruption
officials acknowledged USG assistance in combating corruption
and identified additional areas of need, including training
for government investigators, prosecutors, and judges, and
technical assistance in the development of an internationally
viable anti-money laundering regime. The Anti-Corruption
Commission (ACC) representatives also suggested that Zambia's
rule of law would be strengthened by disbanding the Task
Force on Corruption and enhancing the ACC's own capacity to
address complex financial crime and petty corruption. End
Summary.


2. (SBU) On January 7, Ambassador Booth met with Acting ACC
Director General Rosewin Wandi and other senior ACC
officials. Wandi raised the issue of anti-money laundering
(AML),noting "renewed government commitment" in light of a
recent Eastern and Southern African Anti-Money Laundering
Group (ESAAMLG) peer review that found Zambia deficient of an
FIU that meets international standards. She said a GRZ
inter-agency task force had begun developing an AML plan of
action that was likely to move forward in 2009. Wandi
speculated that the Drug Enforcement Commission (DEC),which
is responsible for AML enforcement and which had previously
opposed the creation of an administrative intelligence unit,
would no longer be an obstacle to AML progress, given the
dismissal (on corruption charges) of former DEC Commissioner
Chitoba. She acknowledged previous U.S. Treasury OTA AML
assistance, which she regretted the GRZ had been ill-prepared
to utilize fully, and said the GRZ would welcome additional
OTA support. On AML, Ambassador said he would try to arrange
additional assistance once a proper FIU is established.


3. (SBU) Wandi announced that the ACC will shortly release
its strategic plan for 2009, which includes provisions for
implementing international conventions against corruption and
calls for an enhanced legal framework. Ambassador Booth
noted that the USG had supported the preparation of five
bills -- asset forfeiture, asset disclosure, evidence,
whistleblower protection, and plea bargaining -- that are
still pending Cabinet approval. (Note: These five pieces of
legislation address many of the provisions of the UN and AU
conventions and protocols against corruption. In 2007, USAID
encouraged ACC former Director General Nixon Banda to
champion the bills, thereby effectively putting into effect
the anti-corruption conventions. End Note.) Although Wandi
was unaware of the status of the pending legislation, she
pointed out that the ACC would lobby for the speedy approval
of the bills.


4. (C) The Ambassador inquired into the National
Anti-Corruption Policy, which has languished for the past two
years pending Cabinet approval. The ACC officials thought it
likely that the policy would be approved by June 2009, now
that the Justice Ministry was finally "being responsive."
(Note: According to Embassy contacts, Justice Minister
George Kunda previously had blocked the policy's approval,
for reasons unknown. End note.) The policy affirms the
ACC's role as the lead GRZ anti-corruption agency,
strengthens its authority to coordinate with other government
offices, and identifies important steps that the GRZ must
take to prevent corruption, including the passage of a
whistleblower protection law and the introduction of wider
asset disclosure requirements. The Ambassador emphasized the
need for Zambia to make continued progress in fighting
corruption in order to maintain its eligibility for a
Millennium Challenge Account compact.


5. (U) Wandi expressed appreciation for USG assistance
through the Millennium Challenge Account Threshold Program,
the U.S. Treasury Office of Technical Assistance (OTA),and
the International Law Enforcement Agency (ILEA) training
facility in Gaborone. She noted that the GRZ had taken full
ownership of the Integrity Committee concept, which the USG
had helped develop, and was rolling this out in five more
government institutions. She also offered her thanks for
training material prepared by a former OTA resident advisor
and pointed out that the modules had become part of the ACC's
standard training curriculum for new investigators. Wandi
expressed her hope that a Millennium Challenge Account
compact could contain funding provisions for anti-corruption.
According to Wandi, the ACC's budget allocation was
insufficient. Additionally, the GRZ had withheld operational
funds during the past five months due to global economic

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crisis-related budget constraints, the state funeral for
former President Mwanawasa, and the October presidential
by-election.


6. (SBU) Wandi explained that although the ACC had in recent
years focused more on public campaigns to prevent corruption,
the ACC's pending strategic plan places equal emphasis on
investigations and prosecutions. To increase its
effectiveness, she pointed to the need for ongoing
educational programs and inquired into the possibility of
increased participation in ILEA courses. Wandi also
identified opportunities for strengthening Zambia's
judiciary, which is the primary cause for delays in
prosecuting cases. She recommended the creation of a
fast-track legal chamber to handle corruption cases and
underscored the value of training subordinate, high, and
supreme court judges to better understand and handle
sophisticated financial criminal matters.


7. (SBU) Regarding the Task Force on Corruption, an ad hoc
body established by former President Mwanawasa to prosecute
acts of corruption committed by senior officials during the
administration of his predecessor, President Chiluba, Wandi
suggested that it was ineffective to have a "parallel" law
enforcement body that had accomplished little at great public
expense. She suggested that the GRZ should consider
disbanding the Task Force, or incorporating it into the ACC.
She noted, however, that the ACC had learned from the Task
Force's multidisciplinary approach (the Task Force consists
of officers seconded from numerous law enforcement offices,
government ministries, and the Bank of Zambia),and said that
the ACC intended to emulate this approach.


8. (C) Comment: Although Wandi's comments may be
well-intentioned, her forecast for GRZ anti-corruption
progress in 2009 may be overly optimistic. There is no
indication to suggest that Cabinet has become more
forward-leaning in the new Administration. Justice Minister
Kunda's influence -- and ability to stall anti-corruption
decisions in Cabinet -- has only increased with his
appointment to the Vice Presidency in November 2008.
Although it is in President Banda's interest to honor his
campaign promises to continue his predecessor's (now
celebrated) anti-corruption agenda, Banda's weakness within
his political party may preclude any meaningful leadership on
his part. Notwithstanding Cabinet's reluctance to move
forward on several relatively straightforward decisions and
its seemingly ambiguous commitment to stamping out
corruption, Post will continue to press for needed reforms
and encourage stronger ACC leadership in achieving its 2009
objectives.

BOOTH