BANDA GOVERNMENT: RESIGNED TO CORRUPTION

C O N F I D E N T I A L SECTION 01 OF 03 LUSAKA 000295

SIPDIS

E.O. 12958: DECL: 04/22/2019
TAGS: KCOR PGOV ZA
SUBJECT: BANDA GOVERNMENT: RESIGNED TO CORRUPTION

REF: LUSAKA 220

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


1. (C) Summary: Communications and Transport Minister Dora
Siliya resigned from office shortly after a tribunal
published the findings of its corruption probe. Although
discredited, Siliya is far from disgraced. The recalcitrant
and impenitent minister has announced her intention to appeal
the tribunal pronouncement. President Rupiah Banda, whose
support of Siliya has raised suspicions of his own
involvement, accepted Siliya's resignation regretfully and
with no acknowledgement of Siliya's fault. Instead, Banda
leveled the blame at the Attorney General's Office, pointing
to its imminent reorganization, fired the procurement
authority head, who had testified against Siliya, and
replaced the procurement authority board. The new board
consists primarily of members of his cabinet. Civil society
and opposition leaders continue to call for the resignation
of Vice President George Kunda, Siliya's unfaltering
protector and a perceived obstacle to progress on the
anti-corruption front. None of this bodes well for Banda's
campaign promise to maintain his predecessor's
anti-corruption campaign -- the firing of the procurement
authority head indicates his transition from passively
ignoring corruption to actively undermining anti-corruption
efforts. The Task Force on Corruption faces the threat of
disbandment, while the Anti-Corruption Commission (ACC)
dithers in response to acts of intimidation and interference.
End Summary.


2. (SBU) On April 16, a tribunal that had been launched to
investigate three acts of impropriety by Communications and
Transport Minister Dora Siliya (reftel) published its
findings. The judges determined that there was insufficient
evidence to support two of the charges, but found Siliya
guilty on the third:

--Charge One: Siliya allegedly cancelled a duly-awarded
contract by the Zambia Public Procurement Authority (ZPPA).
The judges determined that Siliya had attempted to nullify
the contract (unsuccessfully),but that attempting to do so
does not constitute a punishable offense.

--Charge Two: Siliya allegedly sought reimbursement for
supplying money for bore hole equipment in Petauke District
above the cost of the equipment. These allegations were
refuted by a witness, who produced receipts that showed she
had paid for the bore hole construction, not merely the
equipment. (These receipts were not lodged with the Petauke
Council until after the case was publicized.)

--Charge Three: Siliya circumvented tender procedures in
awarding a contract to RP Capital Partners of Cayman Islands
to evaluate Zamtel assets in preparation for the
semi-privatization of the state-owned telecom company. On
this charge, the tribunal found Siliya guilty of not
following tender procedures, committing GRZ funds above that
which she is entitled and without Cabinet approval,
incorrectly signing a government contract (in lieu of the
Finance Minister),ignoring the Attorney General's legal
advice, and amending a contract after it had been cleared by
the Solicitor General (adding a payment clause of USD 2
million).


3. (SBU) The tribunal, launched by former Communications and
Transport Minister William Harrington and ten civil society
organizations, consisted of a series of witnesses who were
examined by the complainants' counsel and cross-examined by
Siliya's defense counsel. Although resembling criminal
proceedings, the tribunal was the result of a civil society
petition (rather than a police investigation) and had, as its
sole mandate, to examine (rather than prosecute) the
allegations levied against Siliya. Consequently, the civil
society paladins had little on which to build their case --
no evidence acquired by subpoena or forensic examination. As
the witnesses could offer no proof that Siliya had received
financial benefit from her misconduct, the tribunal could not
establish that she had breached the Parliamentary and
Ministerial Code of Conduct Act. Nevertheless, the tribunal
showed that by ignoring the Attorney General's advice and
interfering in the tender procedures, Siliya violated the
Zambian Constitution as well as the Cabinet Handbook. The
judges presented their findings to President Banda without
offering recommendations on a course of action.


4. (C) Within 24 hours of submitting her resignation, Siliya
announced her intention to seek a judicial review of the
tribunal findings. Despite having served as a witness and
having had the opportunity to cross-examine each witness,

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Siliya claimed that she "never had an opportunity to rebut
the claim that she breached the Constitution." Perhaps
relying on the favorable coverage of her trial by the
State-run newspapers, she insinuated that the tribunal had
vindicated her by establishing that she did not breach the
Parliamentary and Ministerial Code of Conduct. Siliya's
statement that "this finding clearly demonstrates that in the
execution of my duties as Minister and Member of Parliament,
I did not gain a pecuniary advantage" seems to suggest that
either she did not read the 109-page tribunal report, or
expects few others to have done so. Quite the opposite, the
judges found Siliya's conduct to be "suspicious," and
suggested that it was "too much of a coincidence" that Siliya
introduced RP Capital to the Ministry. (Comment: Indeed,
the tribunal report shows that Siliya had pursued the RP
Capital contract with a zeal atypical of a GRZ official. End
Comment.) Siliya's resignation preserves her political
prospects for another cabinet posting, something that would
have been legally prohibited in the event of her firing.


5. (C) President Banda, who announced at the outset of the
tribunal that Siliya would outsmart her opponents, has been
tainted by his unwavering support and apparent involvement.
During the tribunal, one witness testified that the
President's son, Henry Banda, was associated with and
operating on behalf of RP Capital. Rather than issue a
statement of warning to other would-be wayward cabinet
members as his predecessor frequently did, Banda neglected to
assign any blame whatsoever to Siliya, referring to her as a
"helpless, accused person." Instead, he directed his
criticism at the Office of the Attorney General, because the
legal opinion of the Attorney General (AG),Mumba Malila,
appeared on one occasion to have been at variance with the
advice of his deputy, Solicitor General Dominic Sichinga.
Banda announced his intention to reorganize the office,
something that UK colleagues suggest the President had been
hoping to do for some time in order to rid Cabinet of the
sometimes overly stalwart AG. (Note: The AG has another
year to serve on his three-year contract and terminating his
contract early would require Banda's direct involvement.)
Sichinga told emboff that he and his colleagues fear that
they will be treated as political scapegoats for Siliya's
wrongs. He noted that he will be meeting with Banda in the
days ahead to discuss the tribunal and the President's plans
to reorganize the office. Task Force on Corruption Lead
Prosecutor Mutembo Nchito told emboff that State House's
"anger" with the Solicitor General stems from Kunda's
annoyance that Sichinga, whom Kunda appointed as Solicitor
General, is not more beholden to him.


6. (C) Within one week of being presented with the
tribunal's findings, Banda fired ZPPA Director General David
Kapitolo, who testified against Siliya at the tribunal. In
his letter of dismissal, the President failed to provide a
reason for dismissing Kapitolo one year before the conclusion
of his contract, although the public consensus is that Banda
is lashing out at Kapitolo for both testifying in the case,
as well as resisting Siliya's efforts to interfere with the
procurement process. Civil society and opposition leaders
have called for the reinstatement of Kapitolo, as well as the
resignation of Vice President and Justice Minister George
Kunda, who consistently stood behind Siliya. Banda replaced
Kapitolo with former Ministry of Education procurement chief
Samuel Chibuye, who is rumored to have illegally tendered
supplies to Banda's family members. Banda also disbanded the
entire ZPPA Board, replacing the "independent" regulatory
body's board members with elements from his political circle,
including ministers of finance, works and supply, energy,
agriculture, and local government and housing as well as his
cabinet secretary.


7. (C) Civil society representatives told emboff that ACC's
investigation of Siliya has been cut short by government
interference. Emboff has received similiar reports of GRZ
intrusion, including information that Vice President Kunda
recently threatened to "turn the State machinery against" the
acting ACC chief for refusing to interrupt its corruption
probe of the Food Reserve Agency. According to a UK
representative who works closely on ACC capacity building,
former President Mwanawasa had at times inquired into ACC
investigations, but had always done so in writing and with
some level of transparency. He observed that State House now
intervenes more frequently and "without a paper trail." In
not so many words, ACC investigators confirmed this to emboff
and also noted that their institution's operational funding
is down by 80 percent, prohibiting most of their work. Task
Force prosecutor Nchito told emboff that Banda had identified
as the next ACC Director General a former Task Force on
Corruption prosecutor who distinguished himself at the Task
Force by his courtroom incompetency and his allegiance to

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State House.


8. (C) In a separate, but also disturbing development, the
GRZ suggested that it intends to disband the Task Force on
Corruption, which Banda's predecessor established to
prosecute high-level corruption in the Chiluba
Administration, including former President Chiluba himself.
Nchito opined to emboff that the single greatest challenge to
the Task Force is no longer the inefficiency of the
judiciary, but the government itself. He said Banda had
aligned himself with Chiluba in order to discredit the Task
Force in advance of the upcoming, July 20 ruling on the
Chiluba case. According to Nchito, Banda fears that a ruling
against Chiluba would set a precedent for his own indictment
and prosecution when he one day departs office. Referring to
the multiple (criminal) investigations into Zambian Airways'
recent insolvency, Nchito (Zambian Airways' former chief
executive) acknowledged that this was part of Banda's and
Chiluba's strategy to damage his reputation and derail the
anti-corruption cases. He said he hoped the investigations
would lead to a court case to expose its lack of merit. He
expressed some concern, however, that the GRZ would order his
arrest pending its investigation of Zambian Airways in order
to interfere with the progress of the Task Force cases that
he is prosecuting.

9, (C) Comment: Although President Banda deftly painted
himself into a corner by offering Siliya his vocal and
unwavering support, he shows little discomfort at being
there. Instead of containing the scandal or distancing
themselves from it, he and his Vice President amplified it by
implicating themselves further. Within hours of dismissing
Kapitolo, Banda appointed a new ZPPA Director, described by
civil society organizations as more "user friendly" to State
House. The appointment of a new ZPPA head and board, and the
government's careless handling of the Siliya affair, suggests
a domestic agenda directed by Banda's personal interests and
efforts to consolidate his control over his party, the
Movement for Multiparty Democracy (MMD). Whatever public
confidence former President Mwanawasa had managed to accrue
through his anti-corruption campaign is quickly ebbing away.
Banda's competing desires for legitimacy and respect (from
Zambian voters, his party, and the international community
alike) on the one hand, and the illegitimate and ill-begotten
spoils of office on the other, require much more political
adroitness and sophistication than he or his subordinates
have so far demonstrated.

BOOTH