ZAMBIAN COMMUNICATIONS AND TRANSPORT MINISTER

C O N F I D E N T I A L LUSAKA 000220


E.O. 12958: DECL: 03/30/2019
TAGS: PGOV ZA
SUBJECT: ZAMBIAN COMMUNICATIONS AND TRANSPORT MINISTER
UNDER INVESTIGATION

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


1. (SBU) Summary. Communications and Transport Minister
Dora Siliya is embroiled in a public tribunal launched by
former Communications Minister William Harrington and members
of civil society. The Zambian Government (GRZ) continues to
support Siliya, who is alleged to have circumvented tender
procedures and engaged in corruption in the award of three
government contracts. To the general public, the tribunal
provides proof of persistent and pervasive corruption within
the GRZ, despite the government's protracted anti-corruption
campaign. It also serves as a gauge of President Banda's
commitment to fighting corruption. Lack of progress on our
"Open Skies" agreement is likely due to Siliya's
preoccupation with the ongoing investigation. End Summary.

Tribunal Probes Corruption Allegations


2. (U) In late February, former Communications and Transport
Minister William Harrington, along with ten civil society
organizations, petitioned Acting Chief Justice Irene
Mambilima to appoint a tribunal to investigate Siliya for
abuse of office. Mambilima acquiesced to the request and
formed a four-person tribunal composed of Supreme Court Judge
Dennis Chirwa (chair),Supreme Court Judge Peter Chitengi
(member),High Court Judge Evans Hamaundu (member),and
Deputy Director of Subordinate Courts Maka Phiri (secretary).
The tribunal commenced its work on March 2 and is scheduled
to submit its findings on April 12.

Allegations


3. (U) Siliya faces allegations that she engaged in
corruption and circumvented tender procedures in the award of
three government contracts:

--RP Capital: Acting against the Attorney General's advice,
Siliya awarded a two million dollar contract to RP Capital
Partners of Cayman Islands to evaluate Zamtel assets in
preparations for the semi-privatization of the state-owned
telecom company. Siliya is alleged to have awarded the
contract without following tender procedures.

--SELEX: Siliya allegedly cancelled a duly-awarded contract
by the Zambian National Tender Board to Thales Air Systems of
South Africa for the supply, delivery, and installation of
radar systems at Lusaka and Livingstone airports.
Subsequently, Siliya awarded the contract to the Italian
SELEX Sistemi Integrati.

--Saro Engineering: Siliya reportedly received a personal
refund of 12.5 million Kwacha (approximately USD 2,200) as a
"kick-back" for the purchase of two hand pumps, valued at
five million Kwacha, from the Zambian-based Saro Engineering.

Friends on High


4. (SBU) Despite compelling evidence that Siliya
over-stepped her authority and abused her office, senior
government leaders, including President Banda and Vice
President Kunda, have rushed to her defense, publicly
announcing that Siliya had not been involved in any
wrongdoing. At the outset of the case, the President
described Siliya as "too smart for her accusers." On
numerous occasions, Vice President Kunda unequivocally
proclaimed Siliya's innocence.


5. (SBU) Siliya's high-level support is countered by a
groundswell of public disapproval. Many local political and
legal experts express skepticism that the tribunal will be
conducted freely and independently. State House's statements
appear to implicate the President more than vindicate Siliya.
On March 19, a tribunal witness testified that the
President's son, Henry Banda, had been working for or on
behalf of RP Capital.


6. (SBU) Some accuse President Banda, who dismissed two
deputy ministers for alleged insubordination on February 26
(the day the tribunal was launched),of attempting to
intimidate civil servants from cooperating in the tribunal.
Meanwhile, the government has not launched a criminal
investigation into allegations against Siliya, but rather has
commenced a police inquiry into the suspected leaks to the
press that precipitated the case.


7. (C) Several civil society representatives told Emboff
that Chief Justice Ernest Sakala, who had been on medical
leave when the petition was filed, returned to office upon
receiving news of the approved petition. The civil society
representatives also relayed that Chief Justice Sakala
revised the composition of Mambilima's tribunal to consist of
members who would be more sympathetic to Siliya. They also
referred to widely circulating, yet unconfirmed, rumors that
President Banda and Chief Justice Sakala are cousins and that
Siliya is the Chief Justice's niece.

Double Standard


8. (SBU) The case comes on the heels of the bankruptcy of
Zambian Airways, a privately owned company that was
essentially shut down because Siliya and the Banda
Administration refused to show flexibility with regard to the
payback period of unpaid airport fees and taxes. Rather than
let the company, whose owners include the owner of the daily
independent (and blatantly anti-Banda) newspaper and the Task
Force on Corruption lead prosecutor, slide quietly into
insolvency, the GRZ launched three parallel criminal
investigations to ascertain whether the airline abused loans
it had received from the Zambian Development Bank.


9. (C) Comment. To many observers, the GRZ's and Siliya's
principled stance regarding Zambian Airways' debts appears
hypocritical in light of the accusations against Siliya.
Government's heavy-handedness toward Zambian Airways,
compared to its defense of -- and possible implication in --
other acts of alleged corruption suggest that the GRZ is
willing to abuse the private sector for its own political and
economic advantage. The tribunal will serve as a gauge for
measuring the extent to which the current Administration
truly intends to confront corruption, as well as President
Banda's commitment to respecting the independence of the
judiciary and the processes for upholding the rule of law.

BOOTH