The ZIMBABWE Situation Our thoughts and prayers are with Zimbabwe
- may peace, truth and justice prevail.

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FinGaz

      Govt angers IMF Rangarirai Mberi

      Staff Reporter
      4/28/2005 7:14:53 AM (GMT +2)

      THE International Monetary Fund (IMF)'s patience with Zimbabwe is
wearing thin after it emerged this week that Harare is seeking to block next
week's scheduled visit by the Fund .

      The ill-advised stalling for time by the government is likely to cause
new rifts with the Fund only three months ahead of a key decision on
Zimbabwe's future in the IMF.
      The bid to buy time also comes at a time when the increasingly
ostracised Zimbabwe can hardly afford to further stiffen the hands of the
international monetarists.
      The country, which is facing a severe crisis of confidence, is
desperate for balance of payments support while its credit rating has been
reduced to junk status - a red flag that has not escaped the attention of
the international financier community.
      Impeccable sources in Washington, who indicated that the Fund had been
miffed by the latest development, told The Financial Gazette yesterday that
the Zimbabwe government is pushing the IMF to postpone a series of meetings,
under the IMF's routine Article IV consultations, which had been scheduled
to open next Wednesday.
      According to the sources, the government through the Ministry of
Finance headed by Hebert Murerwa, has told the Fund that because it recently
split the former Finance and Economic Development Ministry into two separate
ministries, government was "not yet ready" to meet the four-member IMF team.
The IMF was not however, convinced and is said to have dismissed this as a
flimsy excuse.
      "They (government) said because of the split, they are still settling
in and cannot meet the IMF," our source said.
      Zimbabwe will be expelled from the IMF at the Fund's next board
meeting in July unless the country can speed up payments of its arrears to
the Fund and show more commitment to economic reforms.
      However, the reluctance by government to meet the IMF as per the
initial arrangement is being interpreted as arrogance and intransigence in
Washington, and is likely to negatively influence the IMF board's decision
on Zimbabwe.
      The IMF had been originally scheduled to first meet the Reserve Bank
of Zimbabwe, which is facing the tough task of convincing the global lender
that the reforms pledged at the last meeting seven months ago remain on
course.
      Yesterday, the RBZ public relations department denied it was unable to
meet the IMF.
      "As the central bank, our books and activities are ready for
inspection by whoever, whenever. As such, we are ready to meet the IMF any
time, but you should understand that the programme has to be cleared by our
parent ministry," a spokesman said.
      "We have made a lot of strides in engaging the IMF so it is not true,
certainly not on our part, that we are not ready to meet them (IMF)."
      The Article IV consultations are mandatory for all members of the IMF.
Sharmini Coorey is head of the planned IMF delegation, while other members
are Paul Heytens, Sonia Munoz and Sanket Mohapatra.
      Apart from meeting the RBZ and government, the team also plans to meet
officials from the Zimbabwe Congress of Trade Unions, the Confederation of
Zimbabwe Industries, the Central Statistical Office and the opposition
Movement for Democratic Change.
      After meeting the RBZ on Wednesday, the IMF team had been scheduled to
meet officials from the Grain Marketing Board
      To Page 27

      and the Agricultural Marketing Authority, the controversial new body
that government has said will be responsible for marketing all agricultural
products.
      On May 11, the IMF team was to hold a meeting with debt laden power
utility, the Zimbabwe Electricity Supply Authority and also meet the
Zimbabwe Stock Exchange.
      The IMF itinerary says the group will meet with the Office of the
President on May 13 to discuss the issue of land reform, corruption and
monopolies. It is not clear from the itinerary whether the team will meet
President Robert Mugabe himself.
      President Mugabe is a strong critic of the IMF, but he last year met
Abdoulaye Bio-Tchane, IMF's director for the Africa Department, in a
conciliatory meeting that contrasted with President Mugabe's past threats to
cut ties with the Fund.
      Latest events come also weeks after Siddharth Tiwari, a deputy
director in the African Department at the Fund gave some guarded optimism on
Zimbabwe's progress in turning around the economy. Tiwari told journalists
in Washington that Zimbabwe had shown some willingness to undertake reforms,
but he said the government needed a more "comprehensive programme that
revives economic activity in Zimbabwe".
      The IMF's February decision to postpone a decision to expel Zimbabwe
from the fund came on the back of the RBZ's promise to step up quarterly
repayments to US$5 million from US$1.5 million. Progress in restraining
inflation, which peaked at 622 percent in January last year but which now
stands at 123 percent, had also assuaged the IMF.
      However, the IMF noted that Zimbabwe's payment of US$16.5 million
since the previous review fell well short of its expectations. As of
February 15 this year, Zimbabwe's arrears to the IMF stood at Special
Drawing Rights (SDR)202 million, or US$306 million, representing 57 percent
of its IMF quota.

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FinGaz

      CIO in charge of grain distribution

      Njabulo Ncube
      4/28/2005 7:15:25 AM (GMT +2)

      ZIMBABWE, grappling with a serious grain deficit threatening an
estimated two million people, has put the State Security Ministry firmly in
charge of the importation and distribution of maize - a pointer to the
gravity of the situation.

      Government sources said members of the Central Intelligence
Organisation (CIO), the country's secretive security agency, which falls
under the State Security Ministry, were now directly involved in the
day-to-day distribution of grain and other cereals.
      The ministry, they say, is scouting for grain and cereals from as far
afield as East and West Africa, mainly Tanzania and Ghana, following
indications that supplies were drying up in traditional source markets.
      South Africa has been Harare's major supplier of white maize, while
Zambia has banned grain exports until it is satisfied with an audit of how
much grain had been harvested in the past agricultural season.
      Zimbabwe has to import at least 1.2 million metric tonnes of maize and
200 000 metric tonnes of wheat and beans.
      Didymus Mutasa, the newly appointed Minister of State Security, told
The Financial Gazette yesterday his ministry was geared for the mammoth task
of sourcing grain for the nation, which is now left with 60 000 metric
tonnes of maize.
      Mutasa said it was not news that his ministry was now directly in
charge of the importation and distribution of grain.
      "For a very long time the ministry has been doing that (importing and
distributing food)," he said. "It is not just recent. It has been a
long-standing issue, but I know you are raising it because we are now
visibly on the ground ensuring that no one starves as indicated by the
President (Robert Mugabe)," he added.
      According to the government, at least US$420 million is needed for the
immediate importation of grain and cereals.
      Added Mutasa: "There's nothing sinister, the ministry (of state
security) does such national duties all the time."
      The country needs 1.8 million metric tonnes of grain annually to meet
domestic needs, at an average of 150 000 tonnes per month. A further 500 000
tonnes is required to replenish strategic reserves.
      Renson Gasela, the Movement for Democratic Change shadow minister of
lands and agriculture, said: "Maize is now being treated like a security
item where the country must be kept in ignorance. This is evidenced by the
total militarisation of GMB (the Grain Marketing Board)."

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FinGaz

      Govt crack team raids NGOs

      Njabulo Ncube
      4/28/2005 7:16:09 AM (GMT +2)

      A GOVERNMENT crack team has, in recent weeks, swooped on several
non-governmental organisations (NGOs) suspected of engaging in subversive
activities, as the increasingly paranoid state steps up its fight against
perceived external enemies.

      While the government described its actions as "routine checks" on the
panicky NGO sector, sources said the days could be numbered for some
foreign-funded agencies because of the draconian NGO Act that is yet to be
signed into law.
      They said the swoop on NGOs could be part of an audit that might
inform the Ministry of Public Service, Labour and Social Welfare of industry
players that should close shop once President Robert Mugabe accedes to the
controversial NGO Act.
      The government, which in 2001 made it illegal for political parties to
receive foreign funding, says external forces were using NGOs as conduits in
their bid to bankroll opposition parties, particularly the main Movement for
Democratic Change.
      President Mugabe, whose ruling ZANU PF secured a disputed two-thirds
majority in last month's polls, accuses Britain, the United States of
America and Australia of funding NGOs with the intention of destabilising
his government as retribution for its decision to seize land from the
minority whites and redistributing it to the landless black majority.
      The controversial NGO Act, rushed through Parliament last year will,
among other things, bar NGOs from receiving foreign funding for governance
programmes. Most NGOs depend on foreign funding for most of their projects.
      According to the National Association of Non-Governmental
Organisations (NANGO), an inter-departmental probe team appointed by Public
Service Minister Nicholas Goche, under the Private Volunteer Organisations
(PVOs), is doing the rounds and carrying out investigations around various
aspects of their operations.
      NANGO, a coalition of civic society organisations operating in
Zimbabwe, has issued an alert advising sector members of unannounced raids
and inspections by a government probe team officials claim includes members
of the dreaded Central Intelligence Organisation (CIO).
      "The terms of reference of the inspecting officers is as follows:
inspect the affairs and activities of PVOs and to examine all documentation
relating to the registration of PVOs relating to thereof in particular, the
registration status of the PVOs, the constitution of the board, whether the
activities of the sponsored or funded are within the mandate of the PVO and
foreign currency transactions for pledge to conversion into local currency",
reads part of the alert.
      NANGO officials yesterday confirmed a probe team visited their offices
last Tuesday where they were asked to produce their books of accounts.
      "They seemed to be particularly interested in foreign currency from
donors and where and what rate we
      converted the money," said an NGO executive whose organisation is one
of about 15 raided by the government probe team in the past month.
      It is an offence for anybody to liquidate foreign exchange on the
non-official markets. Several prominent individuals and companies have been
arraigned before the courts on charges of violating the exchange control
regulations.
      Didymus Mutasa, the Minister of State Security responsible for the
CIO, said although he had not sanctioned the investigations, he suspected it
was a routine exercise by the government to keep tabs on NGOs.
      "I don't know about the raids but the investigations could be
 routine," said Mutasa. "Some of these NGOs have been up to no good. So I
don't think there is anything wrong with the government getting to know the
core of their busy," he said. "Has anyone been arrested? I don't think so.
This is just normal business."
      Goche could not immediately comment yesterday as his office said he
tied in a meeting when this newspaper called to ascertain the authenticity
of the claims of the country's NGO sector.
      According to the NANGO alert, the probe team has also been tasked to
examine the books of accounts and other documents relating to the financial
affairs of PVO including sources of income, structures of expenditure and
verification of activities implemented on the ground

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FinGaz

      Mawere in million rand deal

      Rangarirai Mberi
      4/28/2005 7:17:11 AM (GMT +2)

      FUGITIVE businessman Mutumwa Mawere, wanted in Zimbabwe on allegations
of externalising $300 billion is far from being finished as information
coming from his base in South Africa reveals he has paid R6.5 million for a
controlling stake in Krohne Limited, a company owned by one of the world's
largest instrumentation and control firms.

      Mawere, still fighting desperately to save his vast Zimbabwe assets
from state seizure, has agreed a deal with Krohne AG under which the German
company will sell a 50.1 percent equity stake in Krohne Limited, its South
Africa operation, to Mawere's Africa Heritage Investment (AHI).
      A Memorandum of Understanding was signed on April 14 in Hannover,
Germany, by Michael Dubbick on behalf of Krohne AG, Marco Rudelli for Krohne
Limited and Mawere, on behalf of AHI.
      Krohne Limited, incorporated in South Africa where Mawere is based, is
a wholly owned subsidiary of Krohne AG, a company registered in Switzerland,
that is in turn wholly-owned by Krohne GmbH & Co, incorporated in Germany.
      Mawere, confirming the deal, said the black economic empowerment (BEE)
deal would add value to Krohne, which has wide applications in mining, oil,
gas and allied industries.
      "This transaction should be seen in a much broader context than normal
BEE deals. We are cognisant (of the fact) that taking a majority stake in
any company carries enormous obligation on our part to significantly add
value to Krohne (Pty) Limited."
      The deal means that Krohne Limited, which until Mawere came in, was
foreign-controlled after 38 years in South Africa, will now join South
Africa's BEE bandwagon.
      Large white-owned companies in South Africa are lining up to sign on
black empowerment groups, both to comply with state requirements on black
ownership and also to attract business from a growing black elite.
      Mawere has not made public his plans for the instrumentation and
control company, but it is possible that he intends to exploit Krohne's
involvement in mining to gain a foothold in South Africa's lucrative mining
industry. Apart from mining, Krohne also serves industries in the
petrochemical, food and beverage, water, power generation and manufacturing
sectors.
      The Krohne deal comes as government presses ahead with the takeover of
Mawere's numerous interests in Zimbabwe. The government, accusing Mawere of
failing to repatriate proceeds from the export of asbestos from Shabani
Mashava Mines, has appointed chartered accountant Afaras Gwarazimba to
nationalise Mawere's businesses.

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FinGaz

      Dabengwa, Sibanda on collision course

      Felix Njini
      4/28/2005 7:18:26 AM (GMT +2)

      DUMISO Dabengwa, the former PF ZAPU intelligence supremo who retired
from the government in 2000, is on a collision course with former war
veterans boss Jabulani Sibanda over the restructuring of the ex-freedom
fighters body.

      The clash between the former home affairs minister and the deposed
Zimbabwe National Liberation War Veterans' Association (ZNLWA) chairman
comes as a three-member committee headed by Dabengwa is about to seek
approval from the ruling ZANU PF's supreme decision-making body - the
politburo - before proceeding with the re-organisation of the vocal group.
      Heads are expected to roll in the politically motivated clean-up of
the war veterans' body, which spearheaded the violent land seizures of 2000,
partly blamed for Zimbabwe's current economic woes.
      Dabengwa, retired army general Solomon Mujuru and retired commander of
the Zimbabwe Defence Forces, general Vitalis Zvinavashe, were mandated by
President Robert Mugabe to restructure the ZNLWA - a key constituency in
ZANU PF's scheme of things.
      War veterans are seen as the force that saved ZANU PF from defeat at
the hands of the Movement of Democratic Change (MDC) in June 2000 when they
made land reform a campaign tool for the ruling party. A firm grip over the
rag-tag group , therefore, is critical for ZANU PF.
      The restructuring, ostensibly aimed at unifying the fighters of
Zimbabwe's liberation struggle and thrashing out concerns to do with their
benefits, has provoked the ire of Sibanda, whose contempt for senior ZANU PF
leaders in Matabe-leland is well-documented.
      Sibanda, suspended from ZANU PF last year for four years for alleged
indiscipline, is against the impeding restructuring, which he equates to
interfering with the ZNLWA's affairs.
      The acid-tongued war veteran alleged that Dabengwa, a former member of
the ZIPRA War Council, and his colleagues wanted to plant their surrogates
within the structures of the ZNLWA.
      It is widely believed that President Mugabe, who has hinted he will
retire at the end of his term in 2008, has given Dabengwa a blank cheque to
reorganise ZANU PF in Matabe-leland, a former PF ZAPU stronghold that has
remained largely elusive to ZANU PF even after the merger of the two
parties.
      "They want to obliterate the association. The President (Mugabe) has
succumbed to pressure from Dabengwa and Mujuru who want to control war
veterans, but we were neither by the party (ZANU PF) . . . nor by
government- we founded ourself," Sibanda said.
      "We had war veterans who had been reduced to destitution at Renkini,
Mbare Msika, Mutare and yet they (Dabengwa, Mujuru and Zvinavashe) did
nothing. Now they are spending more of their time pursuing policies of
elimination so that they remain leaders. We will not have anything of that
sort," Sibanda said.
      Dabengwa, who retired from President Mugabe's Cabinet after losing the
Nkulumane seat to MDC vice-president Gibson Sibanda in 2000, scoffed at
Sibanda's accusations.
      The former home affairs minister, who alleged the ZNLWA despised
commanders of the 1970s liberation struggle that brought Zimbabwe's
independence in 1980, said Sibanda was "mentally deranged".
      "There are many mad people in this world and he (Sibanda) is one of
them," Dabengwa said. "From the beginning, the war veterans said they did
not want senior commanders when they formed that association. But that is
their problem," Dabengwa added.
      Sibanda has previously accused the ZANU PF leadership in Matabeleland
of "destroying ZANU PF".
      Sibanda's deputy, Joseph Chinotimba, was also suspended from ZANU PF's
provincial co-ordinating committee and stopped from participating in the
party's primary elections to chose candidates for the March 31 polls.
      Chinotimba was accused of attending the Tsholotsho meeting that led to
the suspension of six party provincial chairmen who were said to have
planned to scuttle the appointment of Joice Mujuru to the position of ZANU
PF and national vice-president.

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FinGaz

      Maize imports continue despite 'bumper harvest'

      Njabulo Ncube
      4/28/2005 7:19:06 AM (GMT +2)

      DESPITE claims that Zimbabwe realised an all-time high maize harvest
of 2,4 million tonnes in the 2003/2004 agricultural season, the erstwhile
regional breadbasket has been importing grain in the past nine months to
augment depleted stocks, a report by the Famine Early Warning System
(FEWSNET) reveals.

      At least 102 000 metric tonnes of maize, 17 000 metric tonnes of rice
and 17 000 metric tonnes of beans had been imported into the country through
informal cross border trade between July 2004 and last month, according to
the report.
      The latest revelations come as it also emerged Harare needs a
staggering US$420 million for maize imports to cover a serious grain deficit
estimated to be 1.2 million metric tonnes between April 2005 and the next
harvest in March 2006.
      Zimbabwe, which last week held stocks of about 60 000 tonnes, had
together with Malawi and the Democratic Republic of the Congo been active
participants in the informal trade of maize grain, a staple food in most
southern African nations.
      The country, which last year refused international food aid claiming
it had enough to feed its starving rural population, imported 13 000 metric
tonnes mainly from Zambia in the nine months.
      During the same period, it also imported unspecified tonnages of rice
and beans from Zambia, now home to a number of white commercial farmers who
left Zimbabwe in the wake of the land reform programme meant to benefit the
landless black majority.
      The government acquired about 4 500 commercial farms from white
farmers for redistribution to nearly 140 000 landless blacks. However,
statistics at hand show that for the past five years since the onset of land
reform, the new farmers have failed to feed the nation hence an upsurge in
the importation of grain by both the formal and informal sectors from
neighbouring countries.
      Harare has also in recent weeks inc-reased imports from South Africa
where it is understood to be purchasing white maize at US$120 per tonne.
      Malawi, another southern Africa nation reeling from severe
drought-induced food shortages blamed on poor rains, also emerged a bigger
dabbler in the maize informal trade than Zimbabwe, procuring a total of 71
000 metric tonnes, mostly from Mozambique.
      "The flow of trade was in the expected direction as both Malawi and
Zimbabwe had cereal deficits whereas the major exporters-Mozambique and
Zambia-had above average harvests," the FEWSNET report said, adding informal
maize exports into Zimbabwe could have been much higher had the country not
imposed restrictive taxes and levies, which only favoured the state-owned
Grain Marketing Board (GMB).
      The GMB is the country's sole trader of grain and as such it is a
criminal offence for anyone to trade in grain.

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FinGaz

      Cheap talk from chameleon Moyo!

      Mavis Makuni
      4/28/2005 7:20:00 AM (GMT +2)

      Look who is talking! Former chief government propagandist and tireless
tormentor and persecutor of journalists, Professor Jonathan Moyo, has been
opining at great length on the demerits of a government-controlled media.

      He was quoted in the press last week speaking disparagingly about the
revival of the Ministry of Information following the latest cabinet
reshuffle. The ministry, which had existed since independence, was abolished
in 2000 , apparently on Moyo's advice, to be replaced by a department of
information and publicity in the President's Office
      Moyo was quoted at length by a weekly paper deriding the revival of
the ministry, which is headed by former diplomat Tichaona Jokonya, as a
"disorganisation" and the upgrading of the department he formerly headed as
a "backward movement".
      Moyo, who was toppled from his hitherto-seemingly-unassailable
position over his role in the Tsholotsho debacle, said Jokonya and his
deputy, Bright Matonga, had been thrown into a difficult situation in which
there was "an old-fashioned Information Ministry located in a modern
information-based society"
      Moyo pooh-poohed the latest development further by stating, "Things
have changed and government ownership of newspapers has become an anathema
to democracy.
      "The whole thing is just not on. ZANU PF must move on with the times."
      What breathtaking hypocrisy and shameless opportunism! Only a short
six months ago, Moyo was furiously defending and frantically promoting the
government actions and policies he is now blasting.
      Why should his sanctimonious posturing be taken seriously when it is
clear he is afflicted by a serious bout of sour grapes?
      His stewardship of the information portfolio ushered in the darkest
and most tragic period for the journalism fraternity since 1980. It was
marked by the enactment of archaic and totalitarian laws under the draconian
Access to Information and Protection of Privacy Act (AIPPA).
      Moyo was the most vociferous defender and ruthless enforcer of these
harsh laws which resulted in the closure of newspapers and the arrest,
intimidation and relentless harassment of media practitioners.
      His determination to silence the private press and turn the state
media into total government propaganda tools caused unprecedented upheavals
and untold suffering. Hundreds of journalists decreed to be 'unpatriotic' or
unwilling to toe Moyo's self-serving line were martyred at the altar of his
expediency by way of his endless and vindictive "restructuring exercises" at
state- owned media organisations. There was no subtlety to Moyo's promotion
of a purely personal agenda as he swaggeringly bullied and shouted down any
stakeholders who disagreed with him. With Moyo acting as the main polarising
force, the media environment in Zimbabwe degenerated into a noxious "dog eat
dog" scenario. Moyo crafted a divide-and-rule approach in which media laws
were so shamelessly selectively applied that regardless of the situation,
public media practitioners could do no wrong while their private media
counterparts were to be mocked, harassed and arrested on the flimsiest of
pretexts.
      And if the truth be told, Moyo's tenure as feared information czar
earned the government of Zimbabwe legions of enemies and saddled it with an
unpopularity and notoriety that will take years to shake off.
      It may take even longer to re-orient those journalists who had become
too accustomed to operating as "their master's voice" to uphold the
standards and ethics of the profession once again.
      It is against this background that Moyo's latest hypocritical
outpourings cannot go unchallenged. Most people do not object to Moyo's
views on the dangers of a government controlling the media in a democracy.
      In fact, most stakeholders agree with him. What puts most people off
is Moyo's brazen opportunism, particularly so soon after changing hats to
revert to being a rabid critic of the ruling party. The question they ask is
why it is alright for Moyo to now express these views when he left no stone
unturned as information minister to force compliance with the conditions he
now describes as "anathema to democracy".
      Remember this is the same man who regularly mocked the government's
critics as "enemies of the state" or agents of foreign powers and interests.
      Moyo was once the most well-placed person in the entire country to
advise President Mugabe and his government on how to deal with the media and
how to mount an effective propaganda campaign designed to influence people
and win friends.
      But what did Moyo do when he had this golden opportunity? Far from
pointing out to the government that laws should not be enacted to protect it
but rather that it existed to protect the laws, the disgraced former
minister played a pivotal role in imposing a repressive agenda on a
bewildered nation.
      Is Moyo saying everything was hunky-dory as long as he was in charge
but is suddenly amiss because Jokonya has taken over?
      The new minister has made a good start by re-establishing dialogue
with editors from both the private and public media. Hopefully, these
contacts will continue until relations improve to at least pre-Moyo levels.
For the necessary healing and reconciliation to happen, Moyo should be the
last person to offer any advice.
      The most telling sign that his current utterances are not influenced
by any moral underpinnings is his apparent belief that merely calling the
portfolio he once headed a department automatically made it better than a
ministry.
      What is in a name? Moyo wreaked greater media havoc and caused more
grief in the five years he headed the Department of Information and
Publicity than his six predecessors did in the preceeding 20 years when they
headed a full-fledged ministry.
      Hopefully, some lessons have been learnt and Jokonya will endeavour to
avoid repeating the excesses of the Moyo era.
      The $64-million question that remains unanswered however, is why and
how Moyo got away with his shenanigans for so long when his credentials as a
political chameleon were a matter of public record.
      Consider for a moment if Moyo would be singing his current tune if
President Mugabe had given his blessing (which Moyo sought) to the former
spindoctor's decision to stand as an independent in Tsholotsho in the
general elections held last month?

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FinGaz

      Whither MDC?

      Hama Saburi
      4/28/2005 7:20:40 AM (GMT +2)

      THE court of public opinion is sharply divided over the Movement for
Democratic Change (MDC)'s decision to dump Thabo Mbeki, the South African
leader and mediator in the Zimbabwe crisis, as the opposition party's
frustration deepens.

      The MDC, desperate to ratchet up pressure on President Robert Mugabe's
government following what it said was "a stolen election", alleges Mbeki
helped ZANU PF secure a disputed two-thirds majority in the March 31 polls.
      "We won't talk to the South Africans as if they are mediators because
we have realised they are funding ZANU PF and engaged it in strategies on
how to win a two-thirds majority," a local weekly quoted MDC
secretary-general Welshman Ncube as saying.
      South Africa has not responded to these specific allegations except to
say the MDC remained an important partner in the resolution of the Zimbabwe
question.
      Mbeki, at the centre of trying to find a solution to Zimbabwe's
polarised political situation, had tried to push President Mugabe's
increasingly isolated government towards political reforms, but his "quiet
diplomacy" fell flat on its face.
      The MDC and its sympathisers also believe Mbeki betrayed Zimbabweans
by endorsing "flawed" elections in spite of concerns raised by the
opposition.
      They said the South African leader's objective had been to give
legitimacy to President Mugabe's regime despite concerns such as opposition
candidates not having equal access to state media and voter registration
lists allegedly having as many as two million illegitimate names.
      The MDC, unhappy it has lost three disputed elections to the ruling
ZANU PF since its launch in September 1999, has turned to Mauritius
President and Southern African Development Community (SADC) chairman Paul
Berenger for help.
      Political analysts say the main opposition party, which won 41 out of
the 120 contested seats in the disputed March elections, has realised it
cannot continue to keep its faith in Mbeki, whom it alleges has shown his
allegiance to the ruling ZANU PF.
      ZANU PF won 78 seats, while dismissed former government spin-doctor
Jonathan Moyo won rural Tsholotsho constituency as an independent.
      It is also in the interest of the MDC, the analysts said, for the
world to know the party has lost confidence in Mbeki so that non-partisan
brokers can be seconded to help salvage the Zimbabwe crisis.
      They said ZANU PF, facing fresh waves of fuel and food shortages, had
little choice but negotiate with the MDC, which it alleges fronts for
Western countries opposed to the Zimbabwe government's controversial land
reforms.
      Yet others think the MDC might have moved one step forward and three
backwards by ditching Mbeki, who commands Africa's largest economy which is
also Zimbabwe's largest trading partner.
      "As an observation, there is no way a government which is
collaborating with the existing government in Zimbabwe and is a member of
SADC can say the opposition party is better than the ruling party. It is
undiplomatic to say that," said political analyst Heneri Dzinotyiwei.
      "The strategy to follow is a quieter diplomacy to understand and brief
them (the South Africans) more about developments in Zimbabwe and pushing
them to adopt a neutral stance," added Dzinotyiwei.
      Dzinotyiwei says he believes the MDC took a narrow view in its
analysis because South Africa is merely interested in rescuing the situation
in Zimbabwe and safeguarding its own interests.
      The elections, said Dzinotyiwei, were one of the many issues of
concern to Pretoria, with Mbeki's role being that of facilitator.
Zimbabweans, he said, should provide answers to their own problems.
      "South Africa has recognised the problems in Zimbabwe and that in
itself is a significant posture showing they do realise there are issues to
be resolved," he said. "There is no way a country which is our neighbour
cannot be relevant for us in resolving our crisis".
      Other analysts said the MDC may still be trying to find its feet after
the March 31 election loss and may have acted too soon without considering
the consequences of its actions. They said the decision to dump Mbeki could
have been rushed as the MDC tried to justify its loss, being contested in
the Electoral Court, to its mainly urban electorate that has religiously
supported the party since its birth.
      The analysts said losing South Africa's backing could leave the party
with no real friends in the sub-Saharan region, adding that President Mugabe
appeared to have a soft spot for Mbeki that could work in the MDC's favour
in the bid to end its deadlock with ZANU PF.
      President Mugabe's other ally Sam Nujoma of Namibia has retired.
      ZANU PF sympathiser and political analyst Augustine Timbe said the
decision to ditch Mbeki would not benefit anyone, including the ruling
party, because it polarised the political process.
      He said Berenger would not help the MDC either because SADC, which he
leads, had already endorsed the poll result.
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FinGaz

      Mashonaland East gets plum jobs in new government

      Staff Reporter
      4/28/2005 7:21:17 AM (GMT +2)

      IF THERE was any doubt as to where the power now lies within ZANU PF,
then a look at Mashonaland East wou-ld provide a handy clue.

      Of the 13 elected Members of Parliament in Mashonaland East, 12 have
been handed plum government positions - including seven "development
 cabinet" seats - while one is reportedly tipped for a diplomatic post.
      President Robert Mugabe has also appointed four deputy ministers from
the 13 MPs.
      Long serving diplomat Tichaona Jokonya, MP for Chikomba, was President
Mugabe's surprise choice for the Ministry of Information and Publicity.
      Herbert Murerwa, the MP for Goromonzi, has been appointed Finance
Minister, while the blundering controversial man from Hwedza, Aeneas
Chigwedere who many felt should have been dumped after running down the
country's education system, was retained as Minister of Education, Sport and
Culture.
      Sydney Sekeramayi (Marondera East) Ambrose Mutinhiri (Marondera West)
David Parirenyatwa (Murehwa North) and Olivia Muchena (Mutoko South) have
all been appointed ministers. Ray Kaukonde, the MP for Mudzi East, was
appointed Masho-naland East governor.
      Joel Biggie Matiza of Murehwa South was appointed Emmerson Mnangagwa's
deputy at the newly-created Ministry of Rural Housing and Social Amenities.
Phineas Chihota, the representative for Seke constituency, was given the
deputy minister's post at the Ministry of Industry and International Trade.
      David Chapfika of Mutoko North was retained as deputy Finance
Minister, while Kenneth Mutiwekuziwa, MP of the avidly ZANU PF constituency
of Uzumba-Maramba- Pfungwe, is the deputy minister of Small and Medium
Enterprise Development.
      The only figure from Mashonaland East that did not make it into
government is Mudzi West's Aqualina Katsande, who The Financial Gazette has
heard is being earmarked for a diplomatic posting.
      Compare Masho-naland East's good fortune with the sorry plight of
Masvingo. The vast province could only send two of its own MPs into cabinet;
Minister of State for Indigenisation and Empowerment Josiah Tungamirai of
Gutu North, and former Foreign Affairs chief Stan Mudenge, who has been
given the less glamorous job of Minister of Higher and Tertiary Education.
      Not even President Mugabe's own province of Mashonaland West can
compare with Mashonaland East.
      Mashonaland West has six cabinet and deputy ministers, including
Patrick Zhuwawo, deputy minister of Science and Technology.
      Mashonaland Central, long regarded as the bedrock of ZANU PF support,
also pales in comparison to Mashonaland East. The province boasts of Vice
President Joice Mujuru, and four ministers. One of them, ZANU PF's political
commissar Elliot Manyika, is a minister without portfolio, while Chen
Chimutengwende is head of the hazy Ministry of Public and Interactive
Affairs.
      The easy explanation will be that the distribution of top government
posts is a mere coincidence. Still, conspiracy theorists in ZANU PF, with
memories of the bitter battle for the Vice Presidency evidently still
playing at the back of their minds, do not see it as a mundane coincidence.
      "There is a deliberate strategy to reward the (Solomon) Mujuru camp,"
a ZANU PF insider claimed this week. "How else can you explain it?"
      Mujuru, a cunning senior soldier in the ZANLA liberation war army,
hails from Jokonya's Chikomba constituency.
      "General", as Mujuru is known in ZANU PF circles, has long been seen
as the kingmaker of ZANU PF politics.
      Mujuru led a robust faction - dubbed the "Chikomba Mafia"- that won
his wife the post of Vice-President, cementing his position as one of ZANU
PF's most influential figures.
      In case President Mugabe retires as promised in 2008, Joice Mujuru has
the best possible shot at the President's chair among all her potential
rivals.
      President Mugabe told The Jakarta Post in Indonesia last week that he
would step down at the end of his current term, claiming though that he
would not follow the lead of several of his retired regional colleagues in
appointing a successor.
      But judging by the configuration of his cabinet, bursting at the seams
with Mujuru's backers, ZANU PF officials now concede that President Mugabe
could never make it any clearer on who he wants to succeed him.
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FinGaz

      Madiro sacked

      Felix Njini
      4/28/2005 7:21:59 AM (GMT +2)

      SUSPENDED ZANU PF Manicaland provincial chairman Mark Madiro has been
sacked from his job as the party's director for finances as the ill-fated
Tsholotsho meeting continues to haunt those who attended it.

      Madiro and five other provincial chairmen were suspended from ZANU PF
for five years following allegations that they had planned to oust the ZANU
PF leadership when they attended the meeting, held at Dinyane School in
Tsholotsho.
      It is alleged the meeting was meant to block Joice Mujuru's rise to
the position of ZANU PF and national vice-president. It was also charged the
meeting sought to rally the provincial leadership in the six provinces
behind former ZANU PF secretary for administration Emmerson Mnangagwa as the
co-vice president.
      The former Manicaland provincial chairman, who was handed his
dismissal letter on Wednesday last week by the ZANU PF secretary for finance
David Karimanzira, said he was not bitter about his ejection, saying he had
served the party well during his time.
      "Eighteen years in that department is long enough. I have served the
party for a long time," Madiro said without elaborating on the circumstances
surrounding his dismissal.
      Sources, however, said the booting out of Madiro, long considered a
protégé of Mnangagwa, was also meant to lessen the presidential hopeful's
grip on ZANU PF's finances.
      Madiro denied ever being linked to Mnangagwa, saying he had worked in
the finance department as a professional cadre and "I did not choose whom to
work under".
      Karimanzira refused to disclose to The Financial Gazette the reasons
for sacking Madiro.
      "That is not an issue which we can discuss in the newspaper,"
Karimanzira said.

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FinGaz

      ANZ, MIC meet on Daily News

      Staff Reporter
      4/28/2005 7:22:26 AM (GMT +2)

      THE Media and Information Commission (MIC) meets the Associated
Newspapers of Zimbabwe (ANZ), publishers of the closed Daily News and The
Daily News on Sunday, tomorrow to finalise the publishing company's
application for a licence.

      The ANZ, which fought a protracted, 18-month-long legal wrangle
following the closure of its two titles in September 2003, won a Supreme
Court ruling earlier this year to launch a fresh application for a licence
with the MIC.
      ANZ chief executive Samuel Sipepa Nkomo refused to give details of
tomorrow's meeting but confirmed that MIC chairman, Tafataona Mahoso, had
invited the company for a meeting.
      "It is difficult to speculate but what I can only say is MIC has
invited us over and we are meeting them on Friday (tomorrow)," Nkomo said.
      The meeting between the ANZ and the MIC comes at a time the new
Minister of Information and Publicity, Tichaona Jokonya, has been hailed for
his conciliatory tone in dealing with the media - both private and public.
      Jokonya, who has pledged to lift the living, working and professional
standards in the media, recently said the government would cultivate a
cordial working relationship with the industry.
      President Robert Mugabe, basking in the glory of a two-thirds majority
in the just-ended parliamentary polls, recently hinted that no newspaper
would be denied a licence.
      Four newspapers - The Daily News, The Daily News on Sunday, The
Tribune and The Weekly Times - have closed shop since September 2003 for
various reasons under the draconian Access to Information and Protection of
Privacy Act.
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FinGaz

      Water woes worsen property plight

      Property Reporter
      4/28/2005 7:42:39 AM (GMT +2)

      HARARE, facing a dearth of new property developments, is making it
even more difficult for fresh projects to take off because of the city
fathers' failure to correct water woes dogging the capital.

      Since December last year, the former "Sunshine City" has experienced
erratic water supplies, with suburbs such as Msasa Park and Mabvuku going
for several weeks without the precious resource.
      Apart from the health hazards posed by the water crisis, property
industry players said the cost could even be more.
      Tavenganiswa Mabikacheche, chairman of the Estate Agents Council
(EAC), said the crisis, blamed on a shortage of water purification chemicals
and old pipes bursting at alarming frequency, has become too prevalent.
      The EAC boss said the water woes had derailed work that was currently
underway, while at the same time scaring away potential developers of new
industrial, commercial and residential properties.
      He said most developers operated on shoestring budgets and could not
afford to continuously fork out salaries and wages while losing productive
hours due to work stoppages caused by the water crisis.
      Mabikacheche said the current water reservoir serving Harare had
failed to cater for the needs of the city. It was therefore unlikely, he
said, that new housing developments could draw water from the same source.
      There was, therefore, need to upgrade the current water system, said
Mabikache-che, adding: "There is an outcry over shortages of serviced land.
Developers might have land but, due to water
      problems and poor funding, they would not be able to service their
land."
      Divine Homes, a local property developer, urged partnership between
the public and private sectors in tackling the water crisis.
      An official with the company said the partnership should develop
Kunzvi Dam, a massive alternative water source for Harare that has been
stalled for the past few years because of lack of funds.

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FinGaz

      And now to the Notebook . . .

      4/28/2005 7:56:13 AM (GMT +2)

      Apart? Are things really falling apart? What do you think? They are,
are they not? CZ should be forgiven for thinking so because everywhere he
looks, all he sees is nothing but cracks - huge cracks for that matter -
emerging everywhere.

      So show cause why CZ cannot believe that things are just beginning to
fall apart?
      We know it is always good - in fact commendable - for men to put on
brave faces even in the middle of a crisis they have no capacity whatsoever
to manage, but in our case we look like we are in a real mess and wading
deeper into it.
      It is a fact that we have run out of food no matter what Mzala Joe and
his other "super-patriots" may wish us to dream.
      It is a fact that we have run out of fuel. It is a fact that we can no
longer afford importing power. It is a fact that in Harare water is now a
luxury for many. It is a fact that we have run out of common sense . . . and
this explains why we can no longer tell the difference between left and
right, black and white, heaven and earth etc, etc. It is a fact that we have
run out of sound leaders - hence the recycling, re-recycling,
re-re-recycling and the re-re-re-recycling of the same old people. We have
literally run out of anything worth bragging about. What we have in
abundance is land. We have lots of it. And patriotism. Lots of it too.
Arrogance. Heaps and heaps of it. Sovereignty. A surfeit and a half.
      But we still have untold difficulties making the land productive. The
best we can do is shout slogans from rooftops but revolutions are not made
on slogans alone.
      As of the other rainbow goodies: arrogance, patriotism, sovereignty
etc . . . they are mere rainbows . . . and don't put butter on bread. No one
will eat them, or even exchange them for the forex we so badly need so is it
wiser than that proverbial overjoyed fool boasting that the moon is his?
      So do you see why we are in a fix. An ostrich mentality will work, but
there is a point beyond which realities on the ground will demand that we
quit fantasising and face the truth and it is at this point that we are
getting at.
      We can accuse anyone of doing this and that to sabotage other efforts,
but the truth is that all this is vainglorious and cynical . . . unless we
make genuine efforts, we will always remain in a fix.
      Good news?
      There seems to be good news coming from the former department of
information . . . now upgraded to a full-blown ministry . . . news that the
new minister, a career diplomat this time around, seems to regret the way
things have been made to be by his predecessor, the Professor himself.
      There can be no better news than this especially if is true that he is
saying AIPPA is open to changes. Every well meaning Zimbo will like it.
These are some of the benefits that come with a change in faces. If only the
Great Uncle could do this to all ministries!
      Anyway no one will begrudge the new minister if he would disagree with
his predecessor's management style to the extent of reversing some of the
crazy things that the Professor did . . . starting with getting rid of some
of those sclerotic bootlickers foisted on public media houses!

      This is CZ's Notebook. Next time!

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FinGaz

      $4 trillion needed for key imports

      Rangarirai Mberi
      4/28/2005 7:32:44 AM (GMT +2)

      ZIMBABWE, overburdened by a severe hard currency crisis, needs to
raise nearly US$580 million (about $4 trillion at the official exchange
rate) over the next seven months to fund critical fuel, power and wheat
imports.

      The Financial Gazette learnt this week that the bill is in addition to
the US$420 million that Zimbabwe needs to meet immediate maize imports,
which includes the US$125 million needed urgently to buy 500 000 tonnes of
maize to replenish the gravely depleted strategic grain reserve.
      It has since been established that the government has drawn up a
budget to import 260 000 tonnes of wheat, which will cost Zimbabwe US$75
million.
      Zimbabwe has set a monthly import requirement of US$60 million for
fuel imports from April to October, which will bring the total fuel import
bill over the following seven months to US$420 million.
      In addition to the fuel requirements, the government is also looking
to raise money for a US$84 million electricity bill from April to October,
the sum of a monthly requirement of US$12 million over the seven-month
period. This brings the total required for grain and energy imports to
US$579 million.
      There has been no official comment as to how government plans to meet
the urgent import bill, but early indications are that the government will
once again muscle in on the money market for cash to buy the foreign
exchange required.
      Such a move would further swell its domestic debt, which rose $4
trillion in one month to $7.2 trillion on April 15.
      The government is already running a large deficit, having budgeted
spending of $27.5 trillion on revenues of $23 trillion. However, government
will now have to bust the budget to buy grain and stave off starvation while
also importing energy to keep industry running.
      These new figures will widen the budget deficit and raise alarm that
the country's central bank-led economic reforms could be thrown into danger.
      The government is increasingly desperate to stem a further
deterioration in the fuel and power supply situation in Zimbabwe. Fuel
queues have been getting longer as suppliers run out of foreign currency to
pay for petroleum imports, while power shortages sank to
      To C4
      From C1
      new lows last week with large swathes of Harare's industrial and
commercial areas losing power for days. Power monopoly the Zimbabwe
Electricity Supply Authority (ZESA) however, insisted this week that the
outages were a result of a loss of 100MW after a fault on the supply line
from the Democratic Republic of the Congo power utility Snel, one of the
parastatal's key regional suppliers.
      Zimbabwe has to pay upfront for most of its imports due to its poor
credit history.
      The new import bill is an omen that demand for foreign currency will
see a steep rise over the coming months, adding renewed pressure on the
Zimbabwe Dollar.
      The local unit, already left vulnerable by weak foreign currency
earnings from tobacco - traditionally Zimbabwe's most reliable earner of
foreign exchange - has continued to slide against major currencies.
      At the official biweekly foreign currency auction, demand for foreign
exchange has continued to outrun supply, while the value of the Zimdollar
has eroded significantly on the parallel currency market since January.
      Tobacco prices opened depressed this season on increased world supply,
causing a walkout at the country's top auction floors. Prices have since
inched higher, but economists say the proceeds of the 85 million kg crop are
unlikely to provide enough cover for Zimbabwe's larger than expected import
bill.
      Zimbabwe's grain requirements have risen sharply over the past quarter
after the government conceded to poor harvests after earlier claims that its
controversial land reforms would deliver a bumper harvest this year.
Zimbabwe expects a harvest of 600 000 tonnes in the 2004/5 season, well
short of earlier official projections of a 2.4 million tonne yield.

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FinGaz

      Chinese suitor ditches unattractive ZISCO

      Felix Njini
      4/28/2005 7:35:41 AM (GMT +2)

      PERENNIAL loss-maker, the Zimbabwe Iron and Steel Company (ZISCO), is
likely to remain firmly stuck in difficulties as it emerged this week that
its prospective Chinese partner has pulled out of negotiations to rescue the
giant steelworks.

      The Financial Gazette can reveal that Shougang International Trade and
Engineering Corporation of China, which could have doled out a US$200
million lifeline, has ditched the largely state-owned ZISCO.
      The negotiations for a capital equity swap deal between the
Redcliff-based ZISCO and Shougang have come unstuck despite indications of
increasing trade preferences between Zimbabwe and the populous Asian state.
      Sources said Shougang had opted out fearing huge losses on its
investments because of the country's precarious coal and electricity supply
situation, which has been compounded by the lack of a reliable rail network.
      "The negotiations were stalled, but we hope to revive them. The
Chinese demanded assurances that they would want a sustainable supply of
coal, electricity and a reliable rail link before they sink in any of their
money," confirmed ZISCO managing director Gabriel Masa-nga. "This however,
is not peculiar to Shougang as every other investor who has expressed
interest in ZISCO has pulled out, citing the same reasons".
      Shougang has had a long-standing relationship with ZISCO dating back
to the 1990s when the Chinese firm constructed Blast Furnace Number Four,
which is ZISCO's lifeline.
      The decision by Shougang has however, made ZISCO rue pulling out of
negotiations with UK-based LNM Holdings Group, the world's second largest
steel maker.
      Masanga is on record saying ZISCO would not go to bed with "Indian or
British investors" saying LNM would not be a suitable partner for the
company.
      Operating at less than 50 percent capacity, ZISCO requires around 1
200 tonnes of coal a day. The steel giant can consume up to 2 000 tonnes of
coal a day, when operating at full throttle.
      Hwange Colliery Company's inability to supply adequate coal to
industry and the lack of capacity at the National Railways of Zimbabwe has
added to the woes at ZISCO.
      "The problem is that ZISCO does not own the coal fields, neither does
it have a transport system and this is a cause for concern," Masanga said.
      He added that hopes were high that ZISCO could revive its bid to
entice the Chinese firm, banking on the Parastatal Local Authorities
Restructu-ring Programme (PLARP) blue-print. PLARP is central bank
brainchild intended to reverse the flagging fortunes of state-led
corporations.
      "We are hoping to sell them this new project, PLARP, and see how they
view it. Maybe we can move forward again," Masanga said.

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FinGaz

      'Power crisis will worsen situation'

      Felix Njini
      4/28/2005 7:37:00 AM (GMT +2)

      THE local industry, already limping owing to the current economic
recession, might sink deeper into crisis because of the resurgence of
electricity cuts, analysts told The Financial Gazette this week.

      The power outages that hit industry last week invoked memories of 2003
when production almost ground to a halt following a severe hard currency
crunch that crippled the Zimbabwe Electricity Supply Authority's (ZESA)
capacity.
      Sources said ZESA was struggling to secure foreign currency needed to
import about 100 mega watts of electricity from Snel of the Democratic
Republic of the Congo (DRC).
      This has resulted in the power utility suffering energy shortfalls.
      The electricity cuts, said analysts, could derail efforts to turn
around the economy.
      Zimbabwe National Chamber of Commerce president, Luxon Zembe, said
power cuts would further reduce industry's capacity from the current 60
percent.
      He said: "This is going to hit hard the supply of goods and services
and further cause shortages on the market".
      Zimbabwe is currently grappling with shortages of basic commodities
ranging from staple maize, cooking oil and sugar among other things.
      "The Reserve Bank of Zimbabwe has been trying to make sure ZESA has
adequate foreign currency for imports, but the authority itself has done
nothing to build its capacity. Demand is increasing as supply is going down
and the situation will be worse in 2007," said Zembe.
      Regional power suppliers are expected to run out of excess electricity
to export in 2007.
      Obert Nyatanga, the ZESA general manager corporate affairs however,
said the current blackouts were a result of a transmission failure in the
DRC.
      He said the power utility is being allocated enough foreign currency
(US$4.5 million a month) to import electricity and has been pre-paying all
its imports. He admitted, though, that the authority did not have money to
buy spares and repair generators.
      ZESA said it has lost 450 MW due to generator failures at its Kariba
Power Station.
      "We should be having 250 MW of internal reserves, but we do not have
those. We have no money to buy critical spares and maintain our generators
but the current problem is emanating from a transmission failure in Luano in
the DRC," Nyatanga said.
      Insiders however, said the real problem was that of lack of foreign
currency. They said Snel, which has previously threatened to switch off ZESA
over non-payment of electricity imports, had cut off supplies to Zimbabwe
over non-payment.
      "If they have the money, why can't they get the power from elsewhere -
is Snel the only exporter in the region?
      "There is no money, they failed to properly balance their books . .
 .," said the source.
      Nyatanga defended ZESA, saying the regional suppliers, HCB of
Mozambique and ESKOM of South Africa had also run out of surplus power to
export.

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