US embassy cable - 04LILONGWE728

C O N F I D E N T I A L SECTION 01 OF 02 LILONGWE 000728 
 
SIPDIS 
 
E.O. 12958: DECL: 08/02/2014 
TAGS: PGOV, KDEM, PINR, MI, Political, President, United Democratic Front 
SUBJECT: RULING PARTY DEVELOPING FISSURE; GOVERNMENT 
GAINING IDENTITY 
 
REF: LILONGWE 719 
 
Classified By: Pol/Econ Officer Peter W. Lord, reasons 1.5 (b/d). 
 
SUMMARY 
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1. (C) With former President and United Democratic Front 
(UDF) Chairman Bakili Muluzi's return from his overseas 
holiday and President Bingu wa Mutharika's continuing display 
of independence (reftel), a fissure in the ruling UDF is 
quickly forming between Muluzi's old guard and Mutharika's 
recent converts.  A UDF heavyweight's arrest and the 
President's overly frank new Chief of Staff have left party 
members drawing lines and choosing sides.  Judging from 
Muluzi's trenchant comments upon his August 1 arrival, the 
UDF did not anticipate Mutharika would bring with him changes 
to the party or its mode of operation.  All the while, 
government is slowly developing an identity independent of 
the ruling party, a completely novel distinction in Malawi. 
END SUMMARY. 
 
UDF HEAVYWEIGHT ARRESTED FOR ALLEGED CORRUPTION 
--------------------------------------------- -- 
2. (C) Just before President Muluzi's return to Malawi from a 
three-week overseas holiday, the Fiscal Police, a specialized 
branch of the Malawi Police Service, arrested Muluzi loyalist 
and United Democratic Front (UDF) heavyweight Humphrey Mvula 
on July 30 for alleged fraud and corruption.  Mvula, 
well-known for financing other members of Muluzi's inner UDF 
circle and for leading the party's militant youth wing, was 
reportedly organizing and financing Muluzi's August 1 
welcome-home reception designed to "up stage" President 
Mutharika.  UDF Secretary General and Muluzi stalwart Kennedy 
Makwangwala termed Mvula's arrest a "political witch-hunt" 
and condemned government's investigation into Shire Bus 
Lines, the parastatal where Mvula is CEO.  Mvula has since 
been released on bail, amid rumors that Muluzi loyalists in 
the UDF have formed a taskforce to discredit the Mutharika 
government. 
 
CHOOSING SIDES 
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3. (SBU) Two Mutharika supporters in the UDF, calling 
themselves "concerned citizens," released a press statement 
on July 27 castigating the "UDF big wigs" for not supporting 
Mutharika.  The statement also called the rumored formation 
of a UDF taskforce against Mutharika "shocking and 
disappointing."  In response, Makwangwala issued a press 
release on July 31, calling for a stop to the "outrageous" 
allegations of corruption and to the "unfair" remarks about 
Muluzi.  The statement concluded by denying that UDF gurus 
were against the President or that an anti-Mutharika 
taskforce had been formed. 
 
HEADS BUTT: NG'OMA VS. MAKWANGWALA 
---------------------------------- 
4. (SBU) Tensions between Makwangwala and newly-appointed 
Chief of Staff Ken Ng'oma formalized when Ng'oma reportedly 
filed legal proceedings against Makwangwala for defamation. 
Ng'oma, who quickly became popular with civil society and 
opposition political parties for publicly denouncing the 
Muluzi administration's "gross mismanagement" of public 
funds, has angered many senior UDF officials with his 
frankness.  Makwangala, defending the UDF and Muluzi, 
publicly called for Ng'oma's silence on July 30, following a 
UDF National Executive Committee (NEC) meeting where it was 
decided Ng'oma needed to stop "cleaning the party's dirty 
linen in public." 
 
MULUZI WARNS UPON HIS RETURN 
---------------------------- 
5. (SBU) At an August 1 rally immediately upon his return to 
Malawi, Muluzi directed comments to a notably absent 
Mutharika, saying "there cannot be a government led by an 
independent President."  Continuing his admonishment, Muluzi 
said such a President would not have the support of 
Parliament, and "there is no way to run government with a 
disgruntled Parliament."  Muluzi also declared, "Anyone who 
does not have a heart for the UDF should pack their luggage 
and go."  In his brief address, Muluzi said he will take a 
three-week national trip to "revitalize the UDF," where, he 
said, he will continue his signature cash handouts, which 
many UDF supporters have criticized Mutharika for ceasing. 
UDF Regional Governor for the South John Chikakwiya commented 
to journalists that it was "a relief to the party faithful" 
to have Muluzi back in the country.  Throughout the address, 
Muluzi was flanked by Vice President Cassim Chilumpha, UDF 
heavyweights, and members of other parties that form the 
UDF's working majority in Parliament, a coalition that Muluzi 
engineered. 
 
COMMENT 
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6. (C) Muluzi clearly thought Mutharika would have to yield 
to him because Mutharika needed the Muluzi-orchestrated 
working majority in Parliament to run government.  However, 
Mutharika seems confident that genuine reform will win him 
enough political support in the House to implement his 
agenda.  With fear of corruption convictions spreading 
through the UDF old guard, the ruling party's fracture will 
continue to grow.  Meanwhile, the leadership struggle in the 
UDF, though chaotic for the party, is creating a noticeable 
separation between government and the ruling party, a 
distinction that did not exist during Dr. Banda's regime or 
Muluzi's two terms in office. 
RASPOLIC