Maravi

Rupiah explains his corruption stance

Rupiah explains his corruption stance
By Chibaula Silwamba
Wed 07 Sep. 2011, 13:59 CAT

UNITED STATES embassy in Lusaka confidential cables released by Wikileaks have revealed why President Rupiah Banda has taken a soft stance on corruption. According to the cables, President Banda told World Bank vice-president that he could not take robust anti-corruption stance because he has multiple constituencies to satisfy.

And the cables revealed that immediate-past World Bank country manager Kapil Kapoor said President Banda's "friendship" with the late Frederick Chiluba could be because the former president had incriminating information on the incumbent or he was funding President Banda's 2011 re-election campaign.

Meanwhile, the cables revealed that the US government regarded Vice-President George Kunda as an obstacle to progress in fighting corruption.

Accoridng to cables prepared by Michael Koplovsky, then US embassy charge d'affaires, dated October 5, 2009, President Banda told the World Bank vice-president that he was committed to fight corruption but he was being "pulled in different directions".

"During a late September meeting on the margins of UNGA United Nations General Assembly in New York, IBRD Africa vice president told the Zambian leader, his trade minister Felix Mutati and State House economic advisor Richard Chembe that Banda needs to deal with the perception that he is soft on corruption," the cables read.

"Banda said it would be easier for him to tackle Zambia's corruption problems and the associated perception when and if he is re-elected to a full five-year term in 2011. Banda insisted that he did not fire Taskforce on Corruption leader Max Nkole; he simply decided not to renew his contract. When pressed for the reasons why, Banda responded that he 'needed people who are loyal' to him."

The cables revealed that Banda said he appreciated the private engagement he had with the donors' troika - the Netherlands, World Bank and United States - heads of mission and wished to keep that channel open. The cables revealed that Kapoor recounted the New York conversation during a well-attended donors' meeting in Lusaka on October 1, 2009 despite leaks of sensitive information, ostensibly from somebody within that group.

"Kapoor noted that Banda usually ultra-sensitive to criticism in the media did not raise recent leaks to the Zambian press. Kapoor speculated on the political pressures to which Banda alluded and concluded that Banda's new 'friendship' with the recently acquitted former president Chiluba is because Chiluba has incriminating information on Banda, has funding for Banda's re-election campaign, can deliver the remote swing Luapula Province in the 2011 elections, or a combination of the three."

In another cable prepared by Koplovsky dated May 28, 2009, the diplomat revealed that Sweden and the Netherlands's freezing of their development assitance to Zambia's health sector reflected mounting donor anxiety, not so much at corruption itself but the Banda-government's seemingly tepid response to it.

Koplovsky stated that seized with the idea that other donors would slash their funding, President Banda summoned numerous heads of diplomatic missions to State House on May 26, 2009 to reassure them of government's on-going commitment to fighting corruption.

Koplovsky stated that during the meeting, the diplomatic and donor community called for decisive government action to improve transparency of public procurement and financial management. He stated that these developments presented an opportunity to the diplomatic community, which had the government's full attention and which may be better poised to secure long-awaited government buy-in on several anti-corruption priorities, including anti-money laundering.

He stated that the Swedish charge d'affares and European Commission representative scolded Banda and his ministers on sector-specific policies and processes related to their development aid.

Koplovsky stated that the head of the UK's Department for International Development (DFiD) and the Dutch ambassador appealed to President Banda to demonstrate his commitment to fight corruption and establish the government's bonafides as a responsible and responsive government.

He said the Dutch ambassador sought to convey that Zambia's attractiveness as a partner and aid recipient was contingent upon its commitment to upholding corruption.

Koplovsky stated that President Banda agreed on the importance of introducing legislative and instutitutional reforms that would strengthen government's ability to prevent and prosecute corruption.

Koplovsky stated that President Banda said he hoped cooperating partners would be satisfied and would resume their aid, adding that "even if cooperating partners do not resume aid flows Zambia would still hold all to account".

"President Banda referred to justice minister and vice-president George Kunda as the coordinator of GRZ's anti-corruption efforts (despite Kunda's reputation as an obstacle to progress in fighting corruption). Kunda noted that the implementation of the newly passed anti-corruption policy is a governmen priority," Koplovsky stated.

"With regard to the Taskforce on Corruption which former president Levy Mwanawasa established to prosecute high-level corruption committed during the Chiluba presidency, Kunda suggested that it has concluded most of its cases (comment: this is not entirely true, given that most cases are in the appeal stage before the High Court) and the GRZ should now build the capacity of the Directorate of Public Prosecutions and ACC Anti Corruption Commission rather than fund the Taskforce in perpetuity."

Koplovsky stated that corruption had weakened public confidence in government but the Banda-administration had made significant progress in its anti-corruption campaign.

He stated that The Post reporters had played an important role in bringing new cases to light and placing pressure on the government for action and guiding the public towards zero tolerance of corruption.

"Although there is much cause for concern, Zambia has made significant strides in its anti-corruption campaign, which today features relatively independent judges, capable prosecutors, vigilant journalists and vocal civil society organisations," Koplovsky wrote.

He stated that numerous developments over the past six months had set government watchdog organisations ablaze with allegations that President Banda was at best not committed to and at worst interfering with the government's fight against corruption.

"They claim he is taking the country 'back to the Chiluba era' renown for the scale of national plunder and depredation of government assets that took place during the presidency of Frederick Chiluba (1991-2001)," Koplovsky wrote.

Among corruption scandals mentioned in the cables include the Dora Siliya-Zamtel-RP Capital saga, single sourced government's US $53 million mobile hospital deal with China, President Banda's friendship with Chiluba and Regina, Henry Kapoko -Ministry of Health saga, former ministry of finance permanent secretary and current ambassador to Japan Wamundila Mbikusita Lewanika's personal interest in a contracted public financial management project. Koplovsky wrote that on May 26, the executive director of the Economics Association of Zambia (EAZ) told embassy officials that these corruption incidents were "but the tip of the iceberg".

The cables stated that President Banda's sons were rumoured to be involved in extremely diverse business deals including the RP Capital sole source contract. Koplovsky stated that, at present, many donors remained skeptical that the Zambian government would follow through its pledges.

"This tension points to a growing distrust between the donor missions and a country that may have grown too complacemnt as a 'donor darling' and recipient of huge amounts of foreign assitance," Koplovsky wrote.

"Although these strains may not break apart European-Zambia partnership, it does not bode well for Zambia's ability to draw in development assistance at the same proportions, let alone foreign investment. At every available opportunity, including during foreign minister Kabinga Pande's June meetings in Washington, it is worth noting that Zambian progress on anti-corruption is essential to the effectiveness of official development assistance and Zambia's own economic prosperity and poverty alleviation objectives."

Koplovsky stated that now that the diplomatic community had the government's attention, it was imperative to send a clear message on what type of specific reforms would best improve government accountability.

"Certainly, some of these reforms should focus on the transparency and efficiency of public procurement and financial management. However, broader legislative and institutional reforms, including whistleblower protection, asset disclosure and asset forfeiture laws and enhanced and well-funded, independent watchdog agencies, as well as robust and independent media are also vital," wrote Koplovsky.

In another cable dated November 30, 2009, then US ambassador to Zambia Donald Booth stated that on November 24, 2009, President Banda met and told him, representatives of the Dutch and World Bank that the donor community would "be sorry" if one of his political rivals wins the presidency in 2011 and would realise what a democrat he Banda was after he is gone.

"He intimated that his political rivals lacked his democratic credentials and cautioned that the donor community 'would be sorry' if they got into power," the envoy wrote. Ambassador Booth said President Banda blamed the lack of progress in many areas on inertia and that it was difficult to get his ministers to embrace "new ideas".

Ambassador Booth said the donor troika chief of missions told President Banda that it was critical that Zambia's 2011 elections be seen as credible and true expression of people's will.

"Banda agreed on the need to prevent violence," the cable reads in part. Ambassador Booth wrote that during the same meeting, President Banda took the opportunity to defend himself against recent allegations of impropriety and his government's perceived backsliding on democratic ideals.

"President Banda seemed very relaxed and engaged throughout the one-hour meeting. He often referred to the difficulty he has had winning Cabinet support for what he considers necessary reforms and shared how minister of home affairs Lameck Mangani and police chiefs had defended restrictive tactics based on outdated national security arguments," Ambassador Booth revealed.

"Banda's inability to rally his Cabinet behind him is telling, as he has never had the full support of the MMD leadership following former president Mwanawasa's death and his by-election win."

In a December 9, 2009 cable, Ambassador Booth stated that President Banda sacked then Attorney General Mumba Malila over the Dora Siliya saga and Dr Rodger Chongwe's US $5.9 million compensation claim. "Comment: President Banda committed a tactical error by doing a favour for a friend but blamed the blunder on his AG after news of Banda's intervention in the Chongwe case leaked to the press," wrote Ambassador Booth.

Labels: CORRUPTION, DONALD BOOTH, DONORS, KAPIL KAPOOR, RUPIAH BANDA, WIKILEAKS

posted by MrK @ 5:25 PM