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Viewing cable 06DARESSALAAM696, TANZANIA: ANTI-CORRUPTION DRIVE MARKS KIKWETE'S

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Reference ID Created Released Classification Origin
06DARESSALAAM696 2006-05-02 09:15 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Dar Es Salaam
VZCZCXRO0468
PP RUEHDU RUEHJO RUEHMR
DE RUEHDR #0696/01 1220915
ZNR UUUUU ZZH
P 020915Z MAY 06
FM AMEMBASSY DAR ES SALAAM
TO RUEHC/SECSTATE WASHDC PRIORITY 3835
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY PRIORITY
RUEHJB/AMEMBASSY BUJUMBURA PRIORITY 2369
RUEHKM/AMEMBASSY KAMPALA PRIORITY 2748
RUEHLGB/AMEMBASSY KIGALI PRIORITY 0799
RUEHLO/AMEMBASSY LONDON PRIORITY 0241
RUEHNR/AMEMBASSY NAIROBI PRIORITY 0047
RUEHFR/AMEMBASSY PARIS PRIORITY 0150
UNCLAS SECTION 01 OF 04 DAR ES SALAAM 000696 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT AF/E FOR B YODER, C PELT, AF/RSA FOR J NAY, M HARPOLE 
ALSO AF/EPS FOR M NORMAN, T HASTINGS 
DRL/PHD FOR K GILBRIDE, DRL/CRA FOR S CRAMPTON 
USAID FOR AF/W OFFICE 
PASS TO MCC OFFICE FOR G BREVNOV, L BLACK 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM ECON EAID TZ
SUBJECT: TANZANIA: ANTI-CORRUPTION DRIVE MARKS KIKWETE'S 
FIRST 120 DAYS IN OFFICE 
 
REF: A. DAR ES SALAAM 0498 
     B. DAR ES SALAAM 0298 
 
Summary 
-------- 
1. (SBU) As Jakaya Kikwete passed the 120-day mark of his 
presidency, he continued to wage a sustained and very public 
attack on alleged corruption, urging probes into persons and 
institutions that for years enjoyed apparent immunity from 
scrutiny under previous administrations.  The press carried 
reports that the government has frozen the foreign bank 
accounts of former Prime Minister Sumaye, and the Tanzanian 
ambassador to Rome is being recalled to face corruption 
charges.  Kikwete has given new life to the Public Corruption 
Bureau, and Parliament has picked up on his message, calling 
for several new investigations into alleged corrupt 
practices, including those of Madam Mkapa, wife of the former 
President.  Kikwete is also urging the press to step up and 
become a more effective institutional watchdog of Tanzanian 
democracy.  We believe, however, that the jury remains out. 
While these are all highly encouraging signs, the ultimate 
success of Kikwete's anti-corruption drive will be measured 
by hard numbers -- the number of those relieved of their 
posts, and the number of those investigated, prosecuted, 
convicted, and jailed.  End summary. 
 
Words into Action 
----------------- 
2. (U) Over the past four months, the Kikwete 
administration's anti-corruption campaign has moved beyond 
words to action including: 
 
-- March 4, President Kikwete appointed a new Inspector 
General of Police (IGP) with strong credentials who 
immediately began restructuring the police force in an effort 
to halt a wave of bank robberies and other high-stake crimes 
that had been plaguing Dar es Salaam and Zanzibar for the 
past six months. 
 
-- March 8, twenty-eight persons, many of them influential 
businessmen, suspected of financing or encouraging the crime 
wave were identified by the police; several had been 
important Kikwete campaign supporters.  Two of these 
businesspersons were arraigned March 7 and are currently out 
on bail pending completion of police investigations. 
 
-- March 31, the GOT formed a special task force composed of 
the Tanzanian Peoples Defense Force, the Directorate of the 
Tanzanian Intelligence Services and the Police Force to 
intensify the war on crime. 
 
-- In March, Tanzania's Ambassador to Italy, Prof. Costa 
Mahalu, was relieved of his duties, stripped of diplomatic 
immunity, and ordered to return to Dar es Salaam to cooperate 
with the ongoing Public Corruption Bureau's (PCB) 
investigation into missing funds of nearly USD 2 million that 
were earmarked to purchase a new Tanzanian Embassy in Rome. 
 
-- The PCB is also probing the operations and finances of 
SIMU 2000, an offshoot of the Tanzania Telecommunications 
Company Ltd (TTCL), that was formed after TTCL was 
privatized.  Allegations abound that SIMU was incorporated 
illegally by certain high-placed officials. 
 
-- April 10, the Minister of State for Regional 
Administration and Local Government, announced the PCB would 
begin a review of suspect local authority contracts and 
examine the source of the amassed wealth of many district 
council directors and other local officials. 
 
Public Corruption Bureau Given "Teeth" 
------------------------------------- 
3. (U) In his monthly address to the nation on March 31, 
President Kikwete challenged the Public Corruption Bureau 
(PCB) to accelerate its anti-corruption efforts; he told the 
Bureau to probe deeply and "send directly to me the list of 
the highest-placed culprits" that PCB investigations 
uncovered.  Allegations of corruption at all levels of the 
 
DAR ES SAL 00000696  002 OF 004 
 
 
GOT have persisted for years.  The Public Corruption Bureau 
was created during the administration of Benjamin Mkapa to be 
the GOT's lead anti-corruption agency with a mandate to 
investigate cases of corruption and refer them to the courts. 
 
4. (SBU) Prior to the Kikwete's tenure, the PCB was 
frequently accused of being ineffective by the press and NGO 
watchdogs.  As reported in post's 2005 Human Rights Report, 
the prosecution of corruption cases was excruciatingly slow, 
with the PCB often taking up to two years to investigate a 
single case.  Only about five percent of the corruption cases 
referred to PCB regional offices made it to a court of law. 
From 1995 to mid-2004, the PCB received 10,319 reports of 
corruption and investigated 9,507 allegations; only 357 cases 
were prosecuted and a mere 48 led to conviction.  During 
2005, no high-level government leaders were tried on 
corruption charges. 
 
5. (SBU) Since January 2006, the PCB has responded to the 
President's anti-corruption call and begun to flex its 
muscles.  The PCB is proactively investigating not only 
possible misuse of funds by the former Tanzania ambassador to 
Italy, but systematically reviewing the contracting history 
of local and district councils.  Contracts and tenders as 
well as construction projects and revenue collection will all 
be examined.  The investigations will extend to whether 
wealth of certain local officials was obtained through 
corruption or other illegal means.  Should this top-down PCB 
investigation on the order of Mizengo Pinda, the Minister of 
State for Local Government, uncover any misdeeds, it is 
unlikely the findings will languish for two or more years 
before court action begins.  April 13 Dar es Salaam press 
reports indicate that the PCB also recently initiated 
scrutiny of three sitting ministers and one deputy minister 
(no names yet public); some are being asked to explain the 
source of large sums of money in their personal bank accounts. 
 
6. (U) In a district level meeting in Kilimanjaro district on 
April 5, President Kikwete reiterated that the "leading 
public enemy" is graft.  He targeted in particular civil 
servants who demand bribes for the services they are supposed 
to give people free of charge and warned: "The days for such 
officials are numbered." 
 
New IGP Determined to Change Police Force Image 
--------------------------------------------- - 
7. (SBU) As Kikwete took office, the police force was under 
intense scrutiny for corrupt practices, particularly in face 
of a wave of armed robberies over the past six months.  The 
Tanzanian and Zanzibar police forces have been severely 
underpaid, with the policemen's monthly salaries often 
deposited late, thus increasing the temptation to take 
bribes, "rent out" weapons to robbers, or, in the worst 
cases, become guns for hire.  In a high-profile January 2006 
case, fifteen Mainland police officers were accused of the 
murder of four Dar es Salaam gemstone dealers.  As of April 
8, ten of these officers had been arrested and are being held 
in pre-trial detention. 
 
8. (SBU) The new Inspector General of Police (IGP), Said 
Mwema, appointed by President Kikwete on March 3, moved into 
his position with impressive credentials.  A former Regional 
Police Commissioner in Mbeya, he had headed up the regional 
Interpol office in Nairobi, Kenya since 2003.  Working 
proactively from the moment he took the helm of the Tanzanian 
police force on March 4, the IGP developed a plan to reduce 
corruption opportunities for police officers.  Mwema asked 
for and received from the GOT an earmark of approximately USD 
3 million as an incentive fund for the police force.  The 
monies first will settle the arrears in police officers' 
salaries, with the remainder to be used for allowances and 
incentive pay. 
 
9. (U) The IGP announced April 4 the formation of a special 
unit to monitor the activities of police officers to "stamp 
out any elements who collude with gangsters."  In addition, 
Mwema said the GOT has set up a reward fund of USD 40,000 to 
compensate citizens for tips that lead to solving a crime; 
 
DAR ES SAL 00000696  003 OF 004 
 
 
tips can be reported by phone or through a new interactive 
website.  In a April 7 announcement, the IGP published phone 
numbers of all Regional Police Commissioners and encouraged 
the public to use the numbers to report crimes or suspect 
activities. 
 
Press Rising to the Occasion 
---------------------------- 
10. (SBU) During a March 9 visit to the Ministry of 
Information and Communications, Kikwete told journalists 
their responsibility is to maintain a high standard of 
excellence.  He then directed his Cabinet to "give 
journalists the information they need to keep the public 
informed" about what each ministry is doing.  Kikwete's 
attitude is in noticeable contrast to that of the Mkapa 
administration, where few reporters had access to ministry 
officials and many GOT officials would only answer written 
questions from the media, sending their responses weeks or 
months later.  Since President Kikwete took office, several 
daily and weekly journals have taken a much more aggressive 
stance in reporting on corruption in parastatals 
organizations or by individuals, including: 
 
-- Calling for probes into the financial transactions of both 
the National Social Security Fund (NSSF) and the Public 
Servants Pension Fund (Note: Allegations abound that these 
pension funds have been invested in dubious deals, possibly 
jeopardizing citizens' retirement benefits. End note.); 
 
-- Exposing possible mismanagement by the Tanzanian Ports 
Authority including gross embezzlement and the purchase of 
obsolete machinery at extremely high prices; 
 
-- Closely scrutinizing the Tanzanian Revenue Authority for 
possible financial mismanagement; and 
 
-- Reporting that foreign bank accounts of the Prime Minister 
under former President Mkapa, Frederick Sumaye, have been 
frozen by the GOT pending investigation and could be worth 
over USD hundreds of millions of dollars. 
 
The "Real Debate" 
------------------ 
11. (SBU) The reaction to this investigative reporting by the 
accused persons or agencies has been predictably swift. 
Yusuf Manji, the Corporate Director of Quality Plaza, who was 
implicated by the press as involved in suspect NSSF deals, 
has sued Reginald Mengi, an important media owner, for USD 10 
million over "false allegations" made by Mengi's newspaper. 
PM Sumaye reacted similarly, suing the owners of the weekly 
"Tanzania Leo" for USD 10 million as well for its report on 
his finances, and demanding an apology. 
 
12. (SBU) While these actions are clearly intended to 
intimidate the press, the editorial pages of the newspapers 
have not remained silent.  The April 2 "Sunday Citizen" 
editor commented on Yusuf Manji's suit against media-owner 
Mengi thusly: "It would indeed be a sad venture if the media 
that has found new life under the new, vibrant President were 
to be cowed by unwarranted litigations and sent back to dark 
days of reporting only that which politicians say."  The 
editor of "This Day" called April 7 for the press and the 
public to stay focused on the key issue: "As these two 
businessmen war in the civil courts, the public must not be 
swayed from the real debate--pension funds must explain how 
they invest people's retirement benefits." 
 
Parliament Speaks Up 
-------------------- 
13. (SBU) The newly-elected and expanded 323-seat parliament 
has also become more vocal on corruption during the third 
Parliamentary session (March 27 to April 10).  Several 
committees initiated investigations into: 
 
-- The high construction costs of the new Bank of Tanzania 
building which could reach nearly six times the original 
estimates.  While the project overseers claimed that much of 
the inflated cost is due to a slide in the value of the 
 
DAR ES SAL 00000696  004 OF 004 
 
 
Tanzanian shilling, Members of Parliament (MPs) are asking 
for thorough scrutiny of apparently-excessive cost increases; 
 
-- Finance and Economic Committee began an investigation into 
how former First Lady Anna Mkapa's NGO--the Equal Opportunity 
for All Trust Fund (EOTF)--was allowed to purchase a cashew 
nut factory in Mtwara contrary to the law.  As a tax-exempt 
NGO, EOTF is not permitted to own or operate businesses; and 
 
-- On April 3, the Parliament called for an investigation 
into the use of the Tanzanian Social Action Fund (TASAF) 
created in 2003 to carry out poverty-alleviation projects. 
While the previous Parliament had approved TASAF Phase 2 in 
May 2005, the new MPs are now calling for a probe into 
allegations that district council officials may have misused 
the fund to construct houses or buy cars.  Both ruling party 
and opposition MPs are concerned over suspect auditing 
procedures and that a high proportion of the TASAF funds went 
to pay for advisors and consultants rather than create jobs 
or micro-finance projects. 
 
Quick response from executive side 
---------------------------------- 
14. (U) On April 4, the executive branch responded to the 
MP's call for a TASAF investigation: the Minister of State on 
Policy and Coordination, Juma Akukweti, reaffirmed the 
government's determination to fight poverty and to take tough 
measures against local officials who impede the 
implementation of TASAF.  Akukweti announced that in Phase 2, 
district commissioners would no longer chair committees that 
administer TASAF funds: "From now on the council financial 
committees would manage all projects; if anything goes wrong, 
the entire committee would be responsible," Akukweti stated. 
 
Comment 
------- 
15. (SBU) Kikwete's vocal calls for action against corruption 
have not only sparked greater independence and investigative 
reporting in the press, but strengthened the institutional 
voice of Parliament.  This, we think, bodes well for 
Tanzania's liberal democracy.  From the time of President 
Nyerere, Tanzania's Executive branch has dominated, while the 
Legislative and Judicial branches wielded little influence 
and the press was largely silent on issues of corruption. 
Thus, the checks and balances of a thriving, liberal 
democracy remained weak.  Kikwete appears to be laying the 
beginnings of a foundation to strengthen democratic 
institutions.  If his efforts extend into the judicial 
system, widely acknowledged as corrupt and inefficient, this 
would bode well not only for Tanzania's democracy, but also 
for its business and investment climate. 
 
16. (SBU) The litmus test for corruption, however, will 
remain the hard numbers of arrests and convictions.  On this, 
the jury remains out.  To date, while many investigations 
have commenced, no high-placed officials or GOT agencies have 
been charged with graft, misuse of funds or other wrongdoing. 
 
RETZER