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DE RUEHWD #0331/01 2891651
ZNY CCCCC ZZH
P 151651Z OCT 08
FM AMEMBASSY WINDHOEK
TO RUEHC/SECSTATE WASHDC PRIORITY 0119
INFO RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP PRIORITY

C O N F I D E N T I A L SECTION 01 OF 03 WINDHOEK 000331 
 
SIPDIS 
 
AF/S 
 
E.O. 12958: DECL: 10/15/2018 
TAGS: KMCA PGOV ECON WA
SUBJECT: AMIDST ACCUSATIONS, NAMIBIAN GOVERNMENT BACKS MCA 
 
REF: WINDHOEK 302 
 
WINDHOEK 00000331  001.2 OF 003 
 
 
Classified By: Classified By: Charge d'affaires, a.i. 
Matt Harrington; reasons 1.4 (b) and (d) 
 
- - - - 
Summary 
- - - - 
 
¶1. (C)  Beginning September 18, the SWAPO Party Youth League 
(SPYL) began leveling unfounded accusations that certain 
senior Namibian government officials were planning to sell 
off Etosha National Park to the United States Government 
using the recently signed Millennium Challenge Account (MCA) 
compact.  Soon after, other SWAPO affiliated groups, like the 
National Union of Namibian Workers (NUNW), joined SPYL in 
making dubious claims against the MCA compact.  Despite 
considerable press coverage, it took nearly three weeks for 
senior government officials to begin refuting the 
allegations.  The Prime Minister and Minister of Health have 
indicated to Charge that the Government remains committed to 
ensuring Parliament ratifies the Compact, while both 
acknowledged that the SPYL and other political opportunists 
have generated considerable confusion over the MCA-Namibia 
program.  End Summary. 
 
- - - - - - 
The Charges 
- - - - - - 
 
¶2. (C)  On September 18, SPYL Secretary for Economic Affairs 
Viekko Nekundi accused Minister of Works and Transport Helmut 
Angula and Minister of Youth and Culture Willem Konjore of 
planning to use the MCA compact to sell Etosha National Park 
"to the Americans."  Nekundi called on both ministers to 
resign.  (Note: During Namibia's two-year-long MCA compact 
negotiations, Angula was the government's lead negotiator as 
Director General of the Namibian Planning Commission (NPC), 
while Kanjore was Minister of Environment and Tourism. 
Within days, the SWAPO-affiliated National Union of Namibian 
Workers (NUNW) joined the SPYL in its charges against Angula, 
Konjore, and MCC. 
 
¶3. (C)  Early on the accusations against MCC included few 
details beyond the unsubstantiated claim that the two 
ministers wished to "auction off some of (Namibia's) national 
assets."  As the charges became more specific, the press 
revealed that MCA's critics had received a leaked draft of 
the MCA Program Implementation Agreement (PIA) that is 
currently under negotiation.  The critics distorted language 
in the Compact and the draft PIA to support their claim that 
the USG would purchase Namibia's "natural treasures."  The 
critics focused on the Compact's language exempting MCC from 
taxation and legal liability, the requirement that private 
tour operators and conservancies be granted concessions 
around Etosha and other parks, and the supremacy of the MCA 
compact over Namibian law (except for the constitution).  The 
SPYL and NUNW disregarded that the provisions on granting of 
concessions were consistent with GRN policies aimed at 
helping poor communities and their conservancies share in the 
dollars that flow into Namibia's most popular tourist 
attractions. 
 
- - - - - - - - - - - - 
The Government Reaction 
- - - - - - - - - - - - 
 
¶4. (C)  For nearly three weeks, few senior government 
officials - other than Minister Angula who was largely 
defending himself - openly refuted SPYL's and NUNW's 
accusations.  Finally, on October 8, the Director  General of 
the National Planning Commission, Peter Katjavivi, held a 
press conference to clear the air.  Katjavivi read a long 
statement explaining the detailed negotiations that led to 
the Compact, and underscoring that the projects included had 
been identified and advocated by the Government.  The 
Director General asserted that there were "no hidden agendas, 
no sinister plans" in the MCA program.  The journalists in 
attendance asked reasonable questions about the substance of 
the Compact, while a contingent of SWAPO Youth League members 
seemed more interested in casting aspersions on the agreement 
than in clarifying their own concerns. 
 
¶5. (C)  While all media outlets have covered the story, the 
government's New Era newspaper and National Broadcasting 
Corporation have generally given more coverage to the SPYL's 
accusations, without seriously questioning the SPYL's motives 
or adequately checking their claims.  But, on October 14, 
Prime Minister Nahas Angula (brother of the accused Minister 
Helmut Angula) criticized the state media's approach to the 
 
WINDHOEK 00000331  002.2 OF 003 
 
 
story.  The Prime Minister told a New Era journalist "What 
makes the situation worse is that government media is the one 
reporting on the agreement and the U.S. government could 
think that the public debate is being orchestrated by 
government."  He added government media was "being 
mischievous and I do not know who they are trying to 
embarrass." 
 
- - - - - - - - - 
The Insider View 
- - - - - - - - - 
 
¶6. (C)  During an October 14 meeting on a separate topic with 
the Charge and PEPFAR coordinator, Minister of Health ) and 
SWAPO Politburo member ) Richard Kamwi raised the SPYL's 
criticisms of the MCC Compact.  Namibia is a democracy and 
its citizens are free to express their opinions, he said, but 
the SPYL are not part of government and do not represent the 
views of government.  He advised us that President Pohamba 
would chair a Politburo meeting on October 16 with the SPYL, 
and Kamwi said he planned to speak strongly in support of the 
MCA compact, noting all the assistance the United States had 
provided under the U.S. President's Emergency Plan For AIDS 
Relief (PEPFAR).  The Minister predicted that the outcome of 
that meeting might be a public statement reiterating the 
GRN's commitment to the Compact.  He surmised that some 
Ministers and MPs might oppose the Compact, but the 
"majority" would support it. 
 
¶7. (C)  On October 15, the Charge met with Prime Minister 
Angula to gauge the state of the government's commitment to 
the Compact.  He was accompanied by the MCC Country Director 
and econoff.  Angula echoed his public comments that the 
negative stories in the press were "unfortunate" and that he 
was "not sure of their origin."  He added that the 
accusations were meant to "whip up emotion" and "elevate the 
profile" of certain individuals.  He remarked with a smile 
that Namibia is preparing for national elections in 2009. 
Angula explained that he had no issue with debating the 
merits of the MCC program, calling such talk "a part of 
democracy."  But, Angula stressed, he was angry that someone 
had leaked the draft PIA document. 
 
¶8. (C)  The Prime Minister explained that many people see the 
MCC compact as just about Etosha, but stressed that people 
must understand that Etosha is just one component of a much 
broader program.  He argued that the controversy has 
generated a lot of confusion about the MCA Compact.  He added 
that many parliamentarians and members of the public are 
misinformed about the MCA program and that the criticisms 
must be refuted in "simple and easy to understand language." 
 Emphasizing his point, he noted that President Pohamba had 
called him with questions about how and why the Compact 
superseded Namibian law.  Charge praised Angula's remarks in 
the interview published in that day's New Era and encouraged 
him and other senior officials to continue to speak out in 
favor of the Compact.   Angula noted that he had given 
another interview that morning to a New Era journalist and 
agreed with Charge's suggestion that the MCC Director speak 
with the media on background to clear up any lingering 
misconceptions.  The Charge shared with the Prime Minister a 
copy of a two-page fact sheet providing key details of the 
Compact and specifically addressing some of the criticisms 
leveled at the document.  The Prime Minister noted that he 
would be meeting with the SWAPO parliamentary caucus the 
following day to discuss the Compact, and that our fact sheet 
would be very helpful background for that discussion. 
 
¶9. (C)  Angula noted that Parliament would begin discussion 
of the Compact on October 23 and that ratification remained 
likely in the coming weeks - as planned.  He added, though, 
that the recent controversy would mean that the PIA will 
undergo much greater scrutiny.  Asked whether an approved PIA 
was necessary for ratification, Angula replied that 
finalization of the PIA would be helpful, but not absolutely 
necessary for ratification. 
 
- - - - 
Comment 
- - - - 
 
¶10. (C)  The accusations against MCC appear related to two 
primary factors: an internal struggle within the ruling SWAPO 
party as well as more specific concerns by the leaders of the 
state-owned Namibian Wildlife Resorts (NWR).  The 2007 
departure of former SWAPO heavyweight Hidipo Hamutenya to 
form his own party exacerbated divisions within SWAPO, with 
many hardliners (including the SPYL and NUNW leadership) 
accusing  Ministers Angula and Konjore of being RDP 
sympathizers. 
 
WINDHOEK 00000331  003.2 OF 003 
 
 
 
¶11. (C)  Further, NUNW leaders have accused Angula and 
Konjore of trying to sabotage government-owned enterprises. 
Managing Director of the government-owned Namibian Wildlife 
Resorts (NWR) -) and former leader in the SPYL -- Tobie 
Aupindi claimed that private concessions were aimed 
specifically at hurting his company, since NWR would be 
required to begin paying concession fees along with its 
non-government competitors.  Currently, NWR enjoys a monopoly 
on lodges and night time access in Etosha and other national 
parks. 
 
¶12. (C)  It is difficult to assess how much resonance the 
SPYL's public campaign has had among MPs. Both PM Angula and 
Politburo member Richard Kamwi seemed convinced that a 
majority of parliamentarians remain supportive of the 
Compact, but they and other senior officials clearly have 
some work to do in clarifying some misconceptions, both 
within SWAPO and among members of the public. End Comment. 
HARRINGTON