VZCZCXRO1898
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHLG #0866/01 3250706
ZNR UUUUU ZZH
R 210706Z NOV 07
FM AMEMBASSY LILONGWE
TO RUEHC/SECSTATE WASHDC 4815
INFO RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE

UNCLAS SECTION 01 OF 02 LILONGWE 000866 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR AF/S ELIZABETH PELLETREAU 
DEPT PLEASE PASS TO USTR FOR F LIZER 
MCC FOR MALIK CHAKA 
 
E.O. 12958: N/A 
TAGS: PGOV ECON KMCA MI
SUBJECT: MALAWI - MCC'S TRANSPARENCY INTERNATIONAL ACTIVITY PROVES 
TIMELY 
 
 
LILONGWE 00000866  001.2 OF 002 
 
 
¶1. (SBU) SUMMARY:  President Mutharika and other government leaders 
expressed public disappointment and frustration with the 2007 
Transparency International (TI) corruption perception ratings for 
Malawi.  Mutharika's main criticism was that TI had no local 
representation and was dealing with old information.  A timely 
activity of the Millennium Challenge Corporation (MCC) threshold 
country program supported a consultative process and stake-holders 
conference Nov. 13-14 regarding the possible formation of a new 
Transparency International (TI) chapter.  Far from a knee-jerk 
reaction, the conference was the culmination of a year-long effort 
to restart a local chapter to ensure that local voices are heard in 
future ratings exercises conducted by TI.  A task force is currently 
reflecting on the results of the stake-holders conference and will 
present recommendations regarding the formation of a TI/Malawi 
chapter in January 2008.  The Ambassador secured the support of 
President Mutharika and other senior GOM officials for this 
initiative.  End summary. 
 
TI Gets the President's Attention 
--------------------------------- 
 
¶2. (U) Malawi's 2007 Transparency International (TI) "Corruption 
Perception Survey" raw score remained un-changed from last year, but 
Malawi's numeric ranking vis-`-vis other countries included in this 
year's index slipped.  Goaded by slanted reporting in the local 
press, numerous government officials, including President Mutharika, 
suggested that this was due in part to TI using outdated data and 
including more countries in this year's index.  Shortly after the 
score was released, the President stated that he wanted to invite 
the president of TI to the country to evaluate for himself the 
progress the country is making in combating corruption.  As this 
occurred in the month immediately prior to the long-planned 
MCC-sponsored public TI events, mission leadership consulted closely 
with MCC's partner Casals and Associates to create an environment in 
which the government and the press would be receptive and positive 
about TI.  The Ambassador met with the President, Finance Minister 
Gondwe, Economic Planning and Development Minister Kalebe, and 
Foreign Minister Banda in early November to brief them on 
USG-supported efforts to re-establish a TI chapter in Malawi and to 
request that they support it.  All of them, but most importantly 
President Mutharika, welcomed this important U.S. support for TI. 
 
 
The Once and Future TI Chapter 
------------------------------ 
 
¶3. (U) TI previously had a chapter in Malawi but it was 
de-accredited by the Berlin TI Secretariat in March 2006 due to 
financial troubles, and was officially disbanded by the board in May 
¶2007.  In November 2006, a Malawi delegation participated in an 
International Anti-corruption Conference held in Guatemala with MCC 
support and returned with an interest in resurrecting TI in Malawi. 
The group subsequently worked with MCC implementing partner Casals 
and Associates (C&A) to determine the steps necessary to re-start a 
TI/Malawi chapter.  C&A, the TI Secretariat in Berlin, civil society 
representatives engaged in anti-corruption initiatives in Malawi, 
and the National Implementation Steering Committee (the committee 
charged with developing Malawi's national anti-corruption strategy), 
agreed on a two-phased approach that included consultations with 
stakeholders and a follow up conference as the first steps to 
re-establishing the chapter. 
 
¶4. (U) With TI releasing its survey at the end of September and the 
consequent reaction of the government throughout October, the plan 
to hold the TI stakeholder consultations and conference in early 
November proved extremely timely.  TI representatives from its 
Secretariat in Berlin and its Kenya chapter convened a conference in 
 
SIPDIS 
Lilongwe on November 13-14.  Nearly 100 participants from civil 
society, media, private sector, and government attended the first 
day of the conference and engaged in frank and thoughtful dialogue. 
The second day was attended by civil society representatives.  The 
groups determined that given the number of civil society 
organizations already working on governance and anti-corruption, any 
TI/Malawi chapter should complement, and not compete, with their 
work.  A task force was formed to undertake additional consultations 
with stakeholders and come up with recommendations for the 
appropriate form and structure of a future TI/Malawi chapter.  Their 
recommendations will be presented to civil society stakeholders in 
January 2008. 
 
¶5. (SBU) Comment: The conference succeeded not only as a gauge of 
the feasibility of reinstating the Malawi TI chapter, but also as an 
opportunity for the government to present to TI representatives the 
strides it has made in fighting corruption.  By reinventing the 
local TI chapter through a careful consultative process, MCC is 
helping to create a lasting TI presence that can accurately portray 
 
LILONGWE 00000866  002.2 OF 002 
 
 
the corruption situation in Malawi and help to hold the government 
accountable - a concept with which the Government of Malawi 
concurs. 
 
EASTHAM