US embassy cable - 05LILONGWE341

UNCLAS SECTION 01 OF 02 LILONGWE 000341 
 
SIPDIS 
 
STATE FOR AF/S ADRIENNE GALANEK 
STATE PLEASE PASS TO MCC/KEVIN SABA 
STATE FOR EB/IFD/OMA FRANCES CHISHOLM 
STATE FOR EB/IFD/ODF LINDA SPECHT 
TREASURY FOR INTERNATIONAL AFFAIRS/AFRICA/BEN CUSHMAN 
JOHANNESBURG FOR FCS 
MCC FOR KEVIN SABA 
 
E.O. 12958: N/A 
TAGS: ECON, KCOR, PREL, KMCA, MI, Economic 
SUBJECT: MALAWI SCORES FIRST BIG CORRUPTION WIN 
 
REF: 2004 LILONGWE 1110 
 
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SUMMARY 
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1. The mayor of Blantyre, Malawi's largest city, was 
convicted of theft yesterday.  The Blantyre Magistrate's 
Court sentenced John Chikakwiya to three years in prison for 
stealing MK400,000 ($3,700) of funds solicited from a local 
merchant for city road repairs.  This is the first conviction 
of a major political figure since President Bingu wa 
Mutharika's anti-corruption campaign began nearly a year ago. 
 
 
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A MULUZI LOYALIST AND UDF BIGWIG 
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2. Chikakwiya is among the most loyal supporters of former 
President Bakili Muluzi in his ongoing political battles with 
Mutharika.  In addition to being mayor of Blantyre, 
Chikakwiya is the United Democratic Front's (UDF) regional 
governor for the Southern Region, the country's most populous 
and the party's home territory.  Mutharika quit the UDF 
earlier this year to form the Democratic Progressive Party, 
the split arising from UDF's tolerance for corruption and 
Muluzi's efforts to control the government through the party. 
 
3. Significantly, Chikakwiya was indicted by the Director of 
Public Prosecutions rather than the Anti Corruption Bureau, 
and he was convicted of theft rather than corrupt practices. 
 This means that the Bureau, and the newly overhauled Corrupt 
Practices Act, have yet to prove themselves.  But the 
presiding magistrate went out of his way in the court 
pronouncement to say that he would have convicted Chikakwiya 
for abuse of office had he not convicted under the more 
serious charge of theft. 
 
 
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NICE TIMING 
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4. The conviction comes just as the donors and opposition 
were beginning to express scepticism over the seriousness--or 
competence--of Mutharika's anti-corruption campaign.  Only 
days before, the British high commissioner was widely quoted 
as saying there has not been much to show for the fight 
against corruption.  And as Muluzi's loyalists have cried 
persecution, other opposition parties have openly accused 
Mutharika of shielding UDFers from past crimes in exchange 
for political loyalty.  The only other big case to come to 
trial, that of Humphrey Mvula, ended last month with 
acquittal on a legal technicality. 
 
5. Despite its failure to get convictions in big corruption 
cases, the administration appears to have been working 
quietly to remove opportunities for corruption.  The Ministry 
of Finance has been implementing improved financial controls 
and procurement procedures in the line ministries, and well 
as dramatically tighter reporting requirements.  In the past 
week, the government has also announced that it has begun 
reorganizing the boards of several parastatals in the 
communications sector, including both television companies 
and the communications regulatory authority.  While these 
measure do not grab headlines, they are likely to have a 
substantive effect on waste, fraud, and abuse in government. 
 
 
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COMMENT 
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6. Chikakwiya's conviction is a qualified victory for 
Mutharika's anti-corruption drive.  On the one hand, it is 
politically important, because it strikes at one of Muluzi's 
closest political cronies.  And it is the first major court 
win for the president's legal team. On the other hand, ithe 
offense was small compared with the multimillion-dollar 
ministerial scandals involving unbuilt school buildings, 
misappropriated famine relief, and fleets of overvalued 
government vehicles.  Added to which, the Chikakwiya case was 
as easy a win as government prosecutors could expect, 
Chikakwiya's being a particularly clumsy crime.  The highest 
profile cases, which will be much harder to prosecute and 
about which the average Malawian harbors deep resentment, are 
yet to come. 
GILMOUR