New currency baffles Zimbabweans

Zim Online

Wed 2 August 2006

      HARARE - Zimbabwean shops and businesses on Tuesday were slashing
zeros on their prices as the country started adjusting to a redenominated
currency introduced by the central bank but ordinary people pondered whether
this signalled that the country's economic fortunes were improving.

      Reserve Bank of Zimbabwe chief Gideon Gono announced a set of hawkish
measures on Monday, including slashing three zeros from its currency and
introducing "a new family of bearer cheques" in a bid to arrest surging
money supply growth and inflation.

      Bearer cheques are a form of temporary currency first introduced by
Gono three years ago when Zimbabwe faced an acute shortage of banknotes.

      Ordinary Zimbabweans - most of whom were battling to come to terms
with the new dispensation, dubbed "Operation Sunrise" by Gono - said the
move to introduce new bearer cheques could create confusion.

      "Does this mean that prices are going down?" asked Michael Chikoto, a
private security guard at a shop in Harare's central business district. When
told prices will not be going down, Chikoto retorted: "So what is the fuss
all about, why are they wasting money printing notes which do not have a
better value than the ones we have?"

      The security guard is one of hundreds of ordinary citizens who were
battling to comprehend the redenominated currency, with many clearly
unconvinced that the new money would help improve their lives or the economy
in general.

      Gono announced the move saying this would bring back dignity to the
Zimbabwe dollar, which is losing its value faster than any other currency on
earth.

      Analysts and business leaders said the move would in the interim help
curb money supply growth but more drastic measures were needed if the
central bank was to sustain its latest project.

      The central bank chief says out of $43 trillion circulating in the
economy, only $15 trillion can be accounted for in the formal market,
meaning that the rest was being stashed away in private homes and used to
finance deals on a thriving but illegal black-market for basic commodities
in short supply in Zimbabwe.

      Yesterday, the police mounted roadblocks around the capital searching
for foreign currency in car trunks and in some cases asking women to open
their handbags.

      "To a certain extent, yes that will work but that will only be a short
term solution. What the country needs to do is to start generating its own
foreign currency to ease pressure on the demand for forex, which is fanning
the black market," Harare-based economist James Jowa said.

      Most shops had already changed to the new system by mid-day yesterday
with some saying most consumers were still grappling with the new
dispensation. They said what made it worse was the fact that between now and
August 21, when the old notes will be phased out, the country will be using
a dual money system.

      And to illustrate the level of confusion, some retailers in the second
largest city of Bulawayo were refusing to accept the old money arguing it
was no longer valid, according to the Consumer Council of Zimbabwe (CCZ).

      "We have received such complaints on a larger scale and what we are
saying to those retailers is that they are violating the rights of
consumers. They should cease to behave the way they are doing and accept the
money that has been in use since it is still valid," said Farai Muchekezi,
an official at the CCZ's Bulawayo office.

      In the meanwhile, the central bank went into overdrive running
full-page advertisements in local newspapers and frequent commercials on
radio and television, calling the new notes "our little heroes".

      The state-owned Herald ran a front page list of major basic
commodities with the old and new prices after the conversion, as part of
efforts to help consumers, but shop workers were adamant that the concerted
effort to market the new money was still to bear fruit, adding that many of
their customers were still to get used to the new denomination system.

      "Most people are still to come to terms with the new system but we are
already compliant and its actually easy when you get used to dropping the
three zeros," a till operator at a major chain store in Harare said.

      But it was business as usual for foreign currency black market traders
saying they were now more cautious after police stepped up their crackdown
against the dealers.

      Gono devalued the local currency to $250, under the new system or $250
000 with the old currency, a rate that is still a fraction of the prevailing
black market rate.

      Analysts said although the controls on cash movement were welcome,
holders of the money were likely to move the funds from foreign currency and
fuel dealings to other assets such as property and stock market.

      They however questioned the rationale behind the new notes when the
central bank is planning to introduce a new Zimbabwe currency in the near
future. Gono said the new currency would be introduced without prior warning
and the public would have seven days to get rid of their old notes.

      "I think it shows a man using trial and error to fix the economic
problems but there are critical structural issues which need to be
addressed, such as the issue of confidence in the economy, recognising
property rights and the country's image abroad as an unsafe investor
destination," leading economic consultant John Robertson said.

      But for now, Chikoto, like many other Zimbabweans have to cope with
three less zeros on their currency. "Anyway they are in charge, there is
little we can do but to accept what they have put in place for us," he said
with a resigned shrug. - ZimOnline

Opposition says Mugabe is the zero that must go

Zim Online

Wed 2 August 2006

      HARARE - Zimbabwe's splintered main opposition Movement for Democratic
Change (MDC) party on Tuesday temporarily set aside internal squabbles to
unite in condemning new monetary changes introduced by Reserve Bank of
Zimbabwe governor Gideon Gono.

      The central bank chief on Monday slashed three zeroes from the local
currency and devalued the dollar by 60 percent in a bid to bring Zimbabwe's
economy back on the rails.

      But economic experts have dismissed the monetary changes as inadequate
to rescue the economy and the two factions of the MDC weighed in with
criticism for Gono describing his latest measures to right the economy as
meaningless.

      Playing on Gono's move to slash three zeros from the currency, the
finance spokesman of the larger faction of the MDC, Tapiwa Mashakada, said
the only one "big zero" that Zimbabwe needed to get rid of to put things
right was  none other than President Robert Mugabe himself.

      "It is not the zeroes that are at the core of the Zimbabwean crisis.
The MDC believes it is not simply the zeros that must go. Mugabe is the big
zero and he must go," said Mashakada in a statement to the Press.

      The MDC accuses Mugabe of ruining what was once one of Africa's most
vibrant economies through repression and wrong policies such as his chaotic
and often violent seizure of white farms that destabilised the mainstay
agricultural sector, causing severe food shortages.

      Mugabe, who has ruled Zimbabwe since its 1980 independence from
Britain, denies mismanaging the country and instead claims that its problems
are because of sabotage by Western governments opposed to his seizure of
white land for redistribution to landless blacks.

      The leader of the smaller faction of the MDC, Arthur Mutambara, in a
separate statement dismissed Gono's monetary reforms as "meaningless and
irresponsible."

      Mutambara said Zimbabwe's economic crisis stemmed from a crisis of
governance and legitimacy and could not be resolved by merely addressing
symptoms of the crisis.

       He said: "The crisis has lead to the total collapse of the
organisation and management of our national economy which has led to the
acute inability to deliver basic public and social services.

       "Any macroeconomic initiative that does not address the totality of
these foundational issues is meaningless and irresponsible."

      Both Gono and Finance Minister Herbert Murerwa were not available to
respond to criticism from the country's biggest opposition party.

      Mashakada said by removing the zeroes on Zimbabwe's currency, Gono was
following exactly in the footsteps of failed countries such as Angola,
Argentina and Peru, where the same measures "failed to rescue unwanted and
doomed  governments desperate to enhance their political fortunes."

      The MDC came closest to removing Mugabe and his ruling ZANU PF party
from power in elections in 2000 and 2002, losing by narrow margins amid
claims by local and international election observers that the government
rigged the  ballots.

      The party split into two rival factions last year after failing to
agree on what strategy to use to unseat Mugabe. MDC founder Morgan
Tsvangirai leads the larger of the opposition party's two factions. -
ZimOnline

South Africa blames Zimbabweans for rising crime

Zim Online

Wed 2 August 2006

      JOHANNESBURG - A South African government minister, Charles Nqakula,
on Tuesday said most violent crimes reported in the country were being
perpetrated by Zimbabweans and Mozambicans.

      Nqakula, who is the Safety and Security Minister, told journalists in
Pretoria yesterday that the South African government was putting in place a
revamped plan to fight violent crime in the country.

      "Cabinet has endorsed a recommendation to commission a study on the
matter by the Institute for the Study of Violence and Reconciliation. Draft
terms of reference are being formulated for presentation to Cabinet," he
said.

      Four South African police officers were gunned down in central
Johannesburg about two months ago in a violent shoot-out with armed robbers.
Eight armed robbers among them Zimbabweans, Mozambicans as well as locals
also died during the shootout.

      The South African media and police have often blamed the rise in
violent crimes on former Zimbabwean soldiers fleeing economic collapse at
home.

      Zimbabwe's ambassador to South Africa, Simon Khaya Moyo, has however
rejected such assertions saying such reports by the media promoted
xenophobia against foreigners. - ZimOnline

Judge's defamation lawsuit hearing enters second day

Zim Online

Wed 2 August 2006

      HARARE - The case in which former Judge President and now Supreme
Court Judge Paddington Garwe is suing the privately-owned Zimbabwe
Independent for defamation entered its second day at the High Court
yesterday with more witnesses giving evidence.

      Garwe wants The Independent - one of the few remaining non-government
controlled newspapers in Zimbabwe to pay  him Z$75 billion (Z$75 million
under new currency) in damages after the paper alleged in a story almost two
years ago  that the then Judge President had attempted to ignore court
assessors and wanted to unilaterally pass judgment in the  treason trial of
opposition leader Morgan Tsvangirai.

      The newspaper claimed that Garwe was forced to postpone handing down
the judgment he had allegedly written after the two assessors demanded
recorded transcripts of court proceedings.

      Tsvangirai was subsequently cleared of charges of plotting to kill
President Robert Mugabe after Garwe ruled that state's chief witnesses, a
self-styled Canadian-based political consultant, Ari Ben Menashe had given
conflicting and unreliable evidence.

      Garwe told the High Court yesterday that The Independent's report was
false and personally hurt him causing him to sue for damages.

      The former head of the High Court had initially sued the paper for Z$1
billion before revising upwards the figure citing Zimbabwe's sky high
inflation.

      The Independent, owned by Johannesburg-based publisher Trevor Ncube,
is cited as the first respondent. The editor of the paper Vincent Kahiya and
his reporter Augustine Mukaro are second and third respondents respectively.

      Mukaro will be the first to be cross examined today followed by Kahiya
later in the day. - ZimOnline

City council says government-built houses are substandard

Zim Online

Wed 2 August 2006

      MASVINGO - The city council in the southern Masvingo city on Tuesday
condemned houses built for victims of a controversial government urban
clean-up exercise as unfit for human habitation.

      The about 150 houses were built under an ambitious housing project,
dubbed Operation Garikayi, launched by President Robert Mugabe's government
after it destroyed shanty towns and city backyard cottages in an urban
renewal exercise that the United Nations says left at least 700 000 people
homeless.

      Only 50 houses built in Masvingo's Runyararo suburb  have been
occupied leaving at least a hundred houses unoccupied as residents shun the
houses which still do not have running water, electricity or sewerage
systems, a year after they were built.

      The opposition Movement for Democratic Change (MDC)-led city council,
banned any further work on the two-roomed houses which it said were
substandard and were built without any approved plans.

      "All the houses built under this scheme have no approved building
plans. It is not possible to allow any developments or extensions on any
house under the project," read part of the council minutes.

      The latest council resolution will certainly place the council on a
collision course with Local Government and Housing Minister Ignatious Chombo
who is in charge of the housing construction programme.

      "I am yet to be formally advised of the resolution. But our position
is very clear. We are urging people with their own resources to extend their
houses built under the scheme," said Chombo when asked for comment
yesterday.

      The Zimbabwe government, which is battling a severe six-year old
economic crisis, has struggled to finish the houses and has in turn resorted
to handing over incomplete houses to beneficiaries. - ZimOnline

ICC sees nothing wrong with Harare poking its fingers in local game

Zim Online

Wed 2 August 2006

      HARARE - The International Cricket Council (ICC) sees no problem with
the government appointing the majority of the Zimbabwe Cricket board
members, amid growing fears over political influence in the running of the
game in the country.

      ICC chief executive Malcolm Speed, speaking to the media in Harare at
the end of a fact-finding mission in Zimbabwe, said government involvement
in the game was not abnormal in cricket culture elsewhere.

      Zimbabwe Cricket's controversial draft constitution proposes to
empower the government, through the sports minister, to appoint seven of the
union's 12 board members.

      "We have seen the draft, and yes, the minister has the power to elect
seven board members," Speed said. "It's not  abnormal in cricket culture for
government to have influence over cricket administration. We do not
prescribe to our members how they should be governed."

      He added: "Each member has a different structure and different
culture. We have been consistent with our policy. There are similar
arrangements with our other members.

      "In Pakistan the president appoints board members. There is in fact a
one-man board there. In Sri Lanka the government also appoints board
members."

      The government took over Zimbabwe Cricket when the Sports and
Recreation Commission dissolved the union's substantive board and replaced
it with an interim one in January following bitter administrative squabbles.

      The delegation to Harare, including new ICC president Percy Sonn, met
Zimbabwe Cricket officials as well as disgruntled stakeholders who have been
pleading with the world body to intervene in the Zimbabwe crisis.

      The ICC delegation was, however, non-commital on Zimbabwe's readiness
to resume Test cricket in January as scheduled.

      Zimbabwe gave up their Test status in January after almost all their
experienced players quit the national team in the heat of the crisis.

      Speed said Zimbabwe could return in six or up to 18 months, but the
ICC will have the final say on the country's preparedness.

      "Ultimately it will be a decision of the ICC board but there will be
an evaluation first," Speed said.

      Sonn urged Zimbabwe to play more longer-version games and also pledged
the ICC would help the country rebuild its national team.

      "We encourage that Zimbabwe play more multi-day games," Sonn said.
"There is a need to play more longer-version games. Whatever support the ICC
shall give it shall give."

      The ICC leaders could, however, not divulge details of their mission
in Harare, only saying they had had "good  meetings" and will hand over
their findings to their board.

      Meanwhile, Zimbabwe face Bangladesh in the third of their five-match
one-day international series at Harare Sports  Club today. The two sides are
tied 1-1 after their double-header at the weekend. - ZimOnline

Complete Pandemonium

Today - the day after Gideon Gono, the Governor of the Reserve Bank,
announced the reduction of the numerical values of the Zimbabwe dollar by
three digits, has been characterized by chaos and confusion.

Barclays Bank and Beverly closed their doors; Standard Bank traded but
advised their clients to write Cheques using the new denominations with the
endorsement "Revalued" on the cheque. Zimbank simply traded as normal -
refusing to issue the new currency. Major firms closed for the day to try
and sort themselves out before reopening. Others refused to accept Cheques
and the "old currency" which technically now is illegal tender. Others
simply continued trading as if nothing had happened.

Everywhere the business community was trying to sort out what to do - close
their accounts, take stock, get balances from the Bank and then reopen with
a new set of accounts and data on their computers. How to work the new
numbers with Cheques still coming in and both types of currency in
circulation?

The new notes have not put in an appearance yet but it is clear that when
they do this will create yet more confusion - they are in the following
denominations (all paper "bearer bonds": -

1 cent, 5 cents, 10 cents, 50 cents, 1 dollar, 5 dollars, 10 dollars etc. up
to 100 000 dollars. The first note is worth 10 "old" dollars, the last is
worth 100 million "old" dollars. The cost of printing the smaller notes,
which will be virtually worthless, must have been at least 50 new dollars
per note (50 000 "old" dollars) so the loss on this operation must run to
many billions of "old" dollars. A complete waste of money as the only unit
that makes any sense is the 1 dollar note and even then this is so small as
to be a nuisance. The 100 000 note will attract the forgers big time!

It is clear there was very little consultation and planning for this huge
exercise. I am told the Police have desended on Beitbridge in force to stop
people bringing the missing trillions back into the country! I feel sorry
for all who must now go through the hoop at the border posts. What a waste
of time and energy.

One immediate casualty - the parallel market has gone crazy, the dollar is
trading at 80 000 to 1 on the Rand, 750 000 to 1 on the US dollar and over a
million to the pound Sterling. It is still moving and goodness knows where
it will end. The slashing of interest rates will force surplus money into
the stock market and we can also expect equitiesd to go into the
stratosphere. Fuel is trading in a confused market at 600 000 "old" dollars
today.

Eddie Cross
1st August 2006

MDC (Mutambara) Response to RBZ Monetary Policy

31st July 2006

On The Statement

The statement by the RBZ governor is a welcome document of imaginative and
innovative monetary initiatives. We congratulate the central bank team for
their hard work and creativity. However, the context and environment in
which these ideas are raised is poisoned and dysfunctional rendering them
ineffective. Furthermore the statement addressed symptoms and not causes of
the Zimbabwean economic crisis. The macro-economic fundamentals were
essentially not addressed. In addition, the remedies offered were neither
long term nor sustainable.

The Zimbabwean economic meltdown is rooted in a crisis of political
governance and legitimacy. The crisis has lead to the total collapse of the
organization and management of our national economy which has led to the
acute inability to deliver basic public and social services. In addition,
Zimbabwe has become a globally isolated pariah and failed state with a
debilitating impact on the performance of business enterprises and public
institutions. Any macroeconomic initiative that does not address the
totality of these foundational issues is meaningless and irresponsible. Thus
the RBZ missed an opportunity to begin a national debate on the causes of
the Zimbabwean economic crisis.

The RBZ governor's obsession with sanctions as a cause of our economic
challenges should be rejected with the contempt that it deserves. The
biggest imposer of sanctions on Zimbabwe is the ZANU(PF) government; through
misrule, dictatorship, inept economic policies, misguided foreign policy,
corruption, and sheer incompetence. These sanctions must be lifted first
before we ask other nations to lift measures that they have imposed on us.
The statement should have clearly identified government incompetence,
mismanagement, lack of economic vision and capacity as major causes of the
economic crisis. Instead it dwelt on secondary and symptomatic issues, while
shielding the regime.

A major flaw of the monetary policy is a single variable approach to
economic analysis. Inflation is separately identified as enemy number one,
corruption as the second one. Other cancers are disjointedly identified as
currency devaluation, exchange rate instability, poor agrarian productivity,
and lack of investment. Monetary policy frameworks are then developed
separately for each area. This is completely unsound and ineffective. These
economic variables are interconnected and inter-dependent. What is required
is a multi-variable economic analysis and policy formulation that take into
account the inter-connectedness of these different issues.

While we appreciate the objective of removing the three zeros in the
currency, to celebrate this policy as a "zeros to hero" project is in
extreme bad taste. There is nothing to celebrate. Zimbabwe is a failed
state, and this policy seeks to tinker with the periphery of a national
disaster. We reject any attempts to create false hope, and buy more time for
the Zimbabwean dictatorship. While we appreciate the efforts to protect the
value of the Zimbabwean currency, we are apprehensive about the use of
ZANU(PF) youths to guard Zimbabwean borders. Illegitimate tools of
repression cannot be used in pursuit of any positive national effort.  Even
the extensive use of our police and armed forces in all these initiatives
smacks of the militarization of our society that has become the hallmark of
this ZANU(PF) dictatorship. There has to be another way.

Zimbabweans should not be hoodwinked into believing that the RBZ statement
represents any hope and salvation. At best it buys the corrupt and
incompetent ZANU(PF) government some reprieve. However, the revolution is
coming. The people of Zimbabwe will not accept anything short of total
political and economic liberation.

The Way Forward

The way forward for Zimbabwe requires more players than the RBZ. In fact, an
inclusive, all stakeholder approach is required. Zimbabweans must address
the foundational issues of institution building, and deepening of democratic
values and principles in all sectors of our society. We need to develop and
live a new democratic culture. This will create the basis for sustainable
change that has both form and substance. A new, people-driven democratic
constitution is a critical pre-requisite to set the national terms of
reference. The process of making that constitution must give confidence to
all Zimbabweans that the outcome will reflect their will. A contested
document is no foundation for stable governance. Key elements of this
constitution should include; effective and functional separation of powers,
executive accountability to the legislature, entrenched independence of the
judiciary, a fair and transparent electoral framework, strong and effective
protection of  fundamental freedoms, liberties and human rights, ensuring
institutional capacity for such protection.

We need to stop the economic decline and the suffering of millions of
families in our country. The starting point is developing an economic
recovery and a stabilization program. A holistic approach that involves all
stakeholders and takes into account all economic factors must be the basis
of a multi-variable economic model for Zimbabwe's survival. There is also
need for economic structural reform, underpinned by economic transformation
that involves integration and coordination of the informal and formal
sectors. There is also need for effective macro-economic policy coordination
that systemically links monetary and fiscal policies. The NEDPP is
completely inadequate, ill conceived and does not present a meaningful
starting point.

Honest assessment of our current predicament and taking ownership of our
challenges will be the starting point. The ZANU(PF) regime is in self-denial
and does not appreciate the extent of our problems.

There is need to develop a medium term economic stabilization strategy which
will focus on fiscal discipline, poverty alleviation, viable social security
programs such as housing, healthcare, education, job creation,
infrastructural rehabilitation, and local authorities capacity building.

Zimbabwe needs a National Economic Vision and a National Economic Strategy.
Where do we want the Zimbabwe economy to be in 20 years? What are we going
to do, in order take Zimbabwe to this destination economy? Beyond recovery
and survival we need to develop long term strategic initiatives, with sector
specific programs, that enable Zimbabwe to emerge as an industrialized,
technology driven, competitive nation, fully integrated into the global
economy. We should use the existing capacity of Zimbabweans and their
natural resources to compete through the design and construction of new and
innovative products on the world market. While building upon our national
core competencies such as agriculture, mining and tourism, emphasis should
be on focused manufacturing and leveraging new technologies. Some of these
new technology platforms are cheaper and lend themselves better to countries
with poor infrastructure than advanced countries. Hence, there is a unique
opportunity for Zimbabwe to run where others walked. We can thus, leap-frog
from the current economic crisis into the globally competitive and
knowledge-based economy. Zimbabwe needs an effective science and technology
strategy, rooted in regional integration and linked to forces of
globalization.

There is need to implement investor confidence building measures in order to
increase trade and investment. Of paramount importance is the respect for
property rights, rule of law, predictability and certainty of laws, and
consistency in the application of regulations. The economic strategy should
then be driven by extensive domestic investment (local and Diaspora),
foreign direct investment (FDI), processed exports, value adding economic
activities, business growth, and economic empowerment. There is need to
engage our strategic partners in Africa, Europe, Asia and the Americas for
investment, partnerships and global outsourcing opportunities. Under
globalization there is no country that can thrive without dealing with the
international community including the multilateral institutions such as the
IMF and World Bank. We know that historically, these two specific
institutions have espoused anti-African and anti-poor people policies. What
is critical is to engage these institutions with the view to extract
favourable arrangements for our country. In the current global economy, the
IMF is ostensibly a gatekeeper. If they are not involved with your country,
there is no investment and trade that will occur there. We cannot go it
alone.

We need to engage everyone in the world community of nations. This misguided
and bankrupt Look East Policy must be rejected with the contempt that it
deserves. How can we look East when the East is looking West? The Chinese,
Singaporean, Malaysian, and Japanese economies are heavily dependent on, and
linked to, the USA and European economies. Zimbabwe needs strategic thinkers
who look everywhere for opportunities, not unimaginative despots typical of
failed and pariah States who seek economic opportunities from one
geographical location, out of desperation and lack of choice.

Zimbabwe's resource base and human capital (local and Diaspora) must be
mobilized and leveraged to benefit Zimbabweans. With a deliberate strategy
of beneficiation (value adding economic activities) we should build new
factories, create economic opportunities and attract investors for further
development. All our minerals must be processed locally and exported as
refined products. For example we need to build refinery plants and secondary
industries for our platinum, gold, and copper. In most developing economies,
remittances from, and economic involvement of the Diaspora have become key
strategic initiatives. We should seek to ensure that our fellow citizens in
the Diaspora have a meaningful role to play in the development of their
country by leveraging their remittances, expertise and networks. However,
there is no taxation without representation. We must allow people in the
Diaspora to vote in all national elections.

Our country is uniquely endowed with natural wonders such as the awesome
Victoria Falls and the majestic Great Zimbabwe. As we return to the
international fold there is need to drive, optimize, and leverage the
tourism sector. We should make our currency valuable again, reduce the cost
of living for the suffering families and stop corruption and misuse of
money.  We need radical transformation to good governance with able and
efficient government at all levels in both the private and public sectors.
We should bring stability and prosperity to our country, which has been lost
in the years of decline and economic collapse.

We should ensure a fair, secure and effective use of land with new
strategies that will make the land green again. What is required is a
democratic and participatory framework that seeks to achieve equitable,
transparent, just, and economically efficient distribution and use of land.
This must have emphasis on productivity, food security and self-sufficiency.
Collateral value of land must be guaranteed by establishing security of
tenure through the provision of title or 99 year leases. Land should never
be used as an instrument of political patronage. With an effective land
revolution in Zimbabwe land owners should be motivated towards beneficiation
where emphasis is placed on secondary agriculture. Under this philosophy, we
should encourage exporting processed agricultural products and not raw
materials. For example; Export clothes not cotton, tinned vegetables not raw
vegetables, flour not wheat, and furniture not timber. Instead of selling
raw materials we should sell value added or finished products. This will
facilitate entrepreneurship, job creation, and thus ensure income for
Zimbabwean families and guarantee prosperity and food security for all.

In all these economic strategic initiatives, the underpinning and central
organizing values should be fiscal discipline, productivity, efficiency,
innovation, creativity, beneficiation and excellence.

This Zimbabwean economic mandate requires generational intervention. History
will never forgive give us if we do not step up to the plate, and rise to
the challenge. We must reclaim our rights, be masters of our own destiny,
and be the change we seek in our country.

Arthur G.O. Mutambara

MDC President

MDC (Tvangirai) Response to RBZ Monetary Policy

FROM THE OFFICE OF THE SECRETARY FOR ECONOMIC AFFAIRS.

            MDC
            44 Nelson Mandela Avenue,

            Tel: 011  803453  758036 Harare

31st July 2006

Incompetence and Impotency

If Zimbabweans needed fresh evidence that the Zanu PF regime does not
understand how modern economies work, does not have a clue about what to do
to fix Zimbabwe's staggering problems and is totally impotent when it comes
to addressing these issues, the policy statement by the Minister of Finance
and the Governor of the Reserve Bank provides ample such evidence.

The Minister tinkers while Zimbabwe burns and the Governor steps through a
magic mirror into a fantasy world that is entirely of his own imagination.

The MDC has stated on many previous occasions that the collapse of the
Zimbabwe economy can only be halted and reversed if we undertake the
following with immediate effect: -

1.                We agree to setting up an interim administration to
oversee the return of the country to the rule of law and democratic
sovereignty.

2.                We collectively negotiate a new people driven constitution
to replace the existing one and hold free and fair elections under
international supervision to restore legitimacy to the Zimbabwean
government.

Until we are in a position to resume inflows of finance and support from the
international community and adopt more orthodox fiscal and financial
policies, there can be no halting of the steady decline currently taking
place in all sectors of the economy.

As far as the details of the two statements are concerned the MDC comments
as follows: -

GDP Decline.

Since 1997, the Gross Domestic Product of Zimbabwe has declined
progressively and continuously. It did so in 2005 and we expect the economy
to shrink by a further 7 per cent in the current year.

The Fiscal Deficit

The IMF brought to the countries notice the massive deficit in the national
fiscus in 2005 of an estimated 63 per cent. This must be compared to the
maximum sustainable budget deficit of 3 to 5 per cent observed by most
countries. The Minister of Finance has done nothing to address this issue
except to be a little more honest than he was in 2005. The accumulated
domestic debt of government at Z$43 trillion must be added to the estimate
of parastatal debt of Z$73 trillion - giving rise to an astonishing figure
for total government domestic debt of Z$116 trillion.

This confirms Zimbabwe's status as a deeply indebted country and with our
external debt now standing at almost US$4 billion with over US$2,2 billion
in arrears Zimbabwe simply has no chance of either servicing such debt or
redeeming it for many decades to come.

Of grave concern is the fact that the Minister has made no attempt to
redress this issue or to halt the explosive growth in debt. This will
inevitably lead to inflationary pressures being maintained in Zimbabwe and
present inflation rates can only accelerate still further until more robust
and substantial measures are taken.

The Absurd Monetary Situation.

The decision by the Reserve Bank to slash three digits off the national
currency and to replace all existing currency in 21 days is a welcome, if
stop gap, measure. The MDC hopes that the necessary administrative action to
support such a radical step has been carried out in advance of this
announcement or the long suffering Zimbabwean population is going to be
faced to yet more chaos and confusion.

Tax Measures

The decision to raise the tax free limit from Z$7 million to Z$20 million a
month is a belated attempt to redress the impact of inflation on individual
incomes. MDC has argued that the tax threshold should be adjusted on a
regular basis and in line with the assessed poverty datum line. Under the
Ministers new tax regime, people earning significantly less than the PDL
(Z$68 million a month) will pay tax at the maximum rate. This is simply
another example of the depths to which Zimbabwe has sunk in the past 26
years.

Corruption.

The main source of corruption and theft in Zimbabwe remains the State
administered system of under valuing exports in local currency and in the
wholesale theft and expropriation of private assets. Mr. Gono is right to
identify corruption as a major problem and one of the key areas that require
the attention of the State. However, he fails to recognise that the Reserve
Bank, an institution that he manages and directs, is in fact the main source
of corruption in the country.

Inflation.

It is clear to all except those in privileged enclaves, that inflation
continues to accelerate and that there is absolutely no way that this can be
halted and reversed under the very conditions being created by these chaotic
and piecemeal reforms. The massive reduction in interest rates will further
devalue our capital stock and the massive expansion in money supply dictated
by the unmanageable budget deficit, will only foster inflation and decay.

Conclusion

Inflation, shrinking economic output and declining foreign earnings are
strangling Zimbabwe's economy. None of the measures announced by the
Minister of Finance or the Governor of the Reserve Bank will halt that
process. The key to progress remains political rather than economic and
monetary tinkering and time is not on our side.

M Hove

Secretary for Economic Affairs.

Panic As Many Rush to Beat 21-Day Deadline

The Herald (Harare)

August 1, 2006
Posted to the web August 1, 2006

Harare

THERE was panic yesterday as people rushed to deposit their old bearer
cheques at banks ahead of the deadline set by the Reserve Bank of Zimbabwe
(RBZ) yesterday.

People have until August 21 to deposit their old bearer cheques and switch
to the new ones which came into effect yesterday.

Some carried carrier bags and trunks full of bearer cheques to the banks
ahead of today's deadline to freely deposit the maximum deposit of $100
million.

Few clients were trying to withdraw money, while a many were queuing to
deposit bulk cash.

At the Commercial Bank of Zimbabwe, Angwa Street Branch, a customer who
refused to be named was seen depositing cash that was stashed in two trunks.

Stanbic Bank, Samora Machel Branch, had a long queue of customers who were
depositing cash while there was a smaller one for withdrawals.

At the Barclays Bank of Zimbabwe, Samora Machel Branch, there was confusion
as customers jostled to bank their money. Some customers who had failed to
catch up with the banking hours were locked outside, as the rush continued.

Govt spending may wreck Zimbabwe c.bank rescue plan

Reuters

      Tue Aug 1, 2006 5:14 PM GMT

By MacDonald Dzirutwe

HARARE (Reuters) - Plans by Zimbabwe's central bank to boost slumping
exports and tame rampaging inflation with radical changes in monetary policy
will fail unless the government reins in flagrant spending, analysts say.

Central bank governor Gideon Gono has devalued the local dollar by 60
percent, slashed interest rates and allowed exporters to keep most of their
foreign exchange earnings in a renewed bid to revive the country's ailing
economy.

In a package of measures unveiled on Monday, he also provided badly-needed
respite for gold miners, which account for a third of Zimbabwe's exports and
most of its foreign exchange income.

But analysts said the changes would prove futile unless the government curbs
the pace it is spending the money it is forced to borrow from local
financial markets -- a trend which has pushed inflation up to nearly 1,200
percent, a world record.

They also said it was crucial to halt the booming trade in an illegal
foreign exchange market, which dwarfs its legitimate counterpart and where
the Zimbabwe dollar had traded at a fifth of its official value.

"The biggest challenge is excessive government spending and parallel market
trading, which are fuelling money supply growth -- that is the biggest
threat to plans to rein in inflation," James Jowa, a Harare based economist,
told Reuters.

Gono's decision to slash interest rates by 550 percentage points to 300
percent -- reversing almost equally hefty hikes so far in 2006 -- was
motivated partly by the need to ease the government's service costs,
analysts said.

The domestic debt owed by President Robert Mugabe's government shot up to
Z$46 trillion by June 30 from Z$15 trillion at the start of the year.
External debt stands at $4 billion.

MEASURES MAY BE FUTILE

Zimbabwe is shunned by international donors because of its controversial
economic policies, including the seizure of white-owned commercial farms for
blacks -- a step which critics say helped create the worst crisis since
independence in 1980.

During the past eight years, the southern African country's economy has
shrunk by 40 percent, while exports have dived from $2.5 billion to $1.7
billion in 2005.

Finance Minister Hebert Murerwa predicted the economy would grow by 0.3-0.6
percent this year after shrinking 2.7 percent in 2005, but his growth
estimates for 2006 have been steadily revised down and analysts predict
another contraction.

They also are sceptical that steps to make life easier for exporters in
general and gold miners in particular would help quash illegal trade in
foreign exchange.

Gono said exporters would be allowed to keep 70 percent of their earnings,
and sell 30 percent to the central bank at the official exchange rate, which
was devalued by 60 percent to 250 to the U.S. dollar on Monday, when the
currency was also redenominated.

Previously they were obliged to spend 70 percent within 30 days on essential
inputs which had to be purchased with foreign exchange, before changing the
remainder into Zimbabwe dollars.

Gold producers were also told on Monday they would be treated like all other
exporters, after being forced to surrender their gold to a central bank
subsidiary. They were then paid 60 percent of their money in Zimbabwe
dollars and the remainder in foreign currency.

"This is a welcome move for exporters but what is critical is how
sustainable the exchange rate will be," said Pattison Sithole, the head of
the Confederation of Zimbabwe Industries.

"It should not be seen as a one off event and as industry we want a market
driven exchange rate to remain viable," he added.

Zimbabwe's central bank has devalued the country's dollar five times since
January 2004, from 4,200 Zimbabwe dollars to an effective rate of 250,000 to
the U.S. dollar following the introduction of a controlled auctions and a
partial float system early in 2006.

The central bank has openly admitted it is printing money to deal with
soaring inflation, but says trillions of Zimbabwe dollars were stashed in
private homes to fund black market deals.

Gold miners saw a measure of hope in Gono's rescue package.

"We are happy because we are now able to plan for capital development and a
good base has been set for increased production," said David Murangari, the
chief executive of Zimbabwe's Chamber of Mines.

"The retention of foreign currency is what the industry has been asking
for," he added.

Analysts said another key issue was what the central bank would do with a
$2.5 billion in capital injection Gono said the country had received in the
second quarter of 2006.

Most of the money will probably come from China, which Zimbabwe is
increasingly leaning on for financial aid, but the money was unlikely to
have arrived yet, they said.

"If it is true the money could be used in generating more electricity,
importing fuel and agriculture inputs and only then can we start talking of
an economic recovery," Jowa said.

Electoral Court Nullified - Full Text Of Justice Malaba's Judgment

The Herald (Harare)

OPINION
August 1, 2006
Posted to the web August 1, 2006

Harare

LAST week, the Supreme Court ruled that the Electoral Court that was set up
to hear election petitions, was improperly constituted and hence was void
and the judgments it made were nullities. The ruling understandably
generated debate in many quarters, with some claiming that the verdict would
precipitate a constitutional crisis and others saying it would have no
bearing on the Constitution or composition of Parliament. We reproduce the
full text of Justice Malaba's judgment below as a precursor to our own
analysis.

Judgment No SC25/06

Constitutional Application No. 160/05

(1) CLAUDIOUS MARIMO (2) MOVEMENT FOR DEMOCRATIC CHANGE v

(1) THE MINISTER OF JUSTICE LEGAL & PARLIAMENTARY AFFAIRS

(2) THE ATTORNEY GENERAL

(3) THE CHIEF JUSTICE

(4) HERBERT MURERWA

SUPREME COURT OF ZIMBABWE

SANDURA JA, CHEDA JA, ZIYAMBI JA, MALABA JA & GWAUNZA JA

HARARE, JANUARY 12 & JULY 25, 2006

E Matinenga with him E Mushore, for the applicants

V Mabhiza with him C Muchenga, for the respondents

MALABA JA: This is an application in terms of s 24(1) of the Constitution of
Zimbabwe ("the Constitution") for redress of an alleged contravention of
Declaration of Rights contained in ss 18(1) and 18(9) of the Constitution.

The right guaranteed to any person under s 18(1) is the right to protection
of the law whilst that entrenched in terms of s 18(9) is the right to a fair
hearing within a reasonable time by an independent and impartial court
established by law.

The first applicant was a candidate for election as a member of Parliament
for Goromonzi Constituency in the general election held on 31 March 2005. He
was sponsored by the second applicant, ("the MDC"), which is a registered
political party. The seat for Goromonzi Constituency was won by the fourth
respondent, who was a candidate in the general election sponsored by the
Zimbabwe African National Union-Patriotic Front ("Zanu-PF").

The parliamentary elections were conducted in terms of the Electoral Act
[Chapter 2:13] ("the Act") which came into operation on 1 February 2005.
Section 161 of the Act established a new court called the Electoral Court
("the Court") with jurisdiction to hear and determine election petition and
other matter in terms of the Act.

Section 162 (1) of the Act provided for the appointment of persons to
preside over the court. It reads as follows:

"162 (1) The Chief Justice shall after consultation with the Judge President
appoint one or more judges of the High Court to be Judge or Judges as the
case may be, of the Electoral Court."

Section 172 of the Act provided that

"172 (1) A decision of the Electoral Court on a question of fact shall be
final

(2) A decision of the Electoral Court on a question of law may be the
subject of an appeal to the Supreme Court."

On 15 April 2005 the first applicant filed a petition with the court
challenging the validity of the election of the fourth respondent as a
member of Parliament for Goromonzi Constituency. Fifteen other candidates
sponsored by the MDC who had lost the election to candidates sponsored by
Zanu-PF filed petitions challenging the results in their respective
Constituencies.

On 5 May 2005 the Chief Justice, acting in terms of s 162 (1) of the Act
appointed five Judges of the High Court to preside over the court to hear
and determine the election petitions. On 23 May the applicants made the
application to the Supreme Court attacking the constitutional validity of s
162(1) of the Act. They alleged that the Electoral Court was a "special
court" as defined in s 92(4)(b) of the Constitution.

The applicants contended that Parliament ought to have provided that persons
to preside over the court had to be appointed in the manner prescribed under
s 92(1) of the Constitution. It was their argument that s 162(1) of the Act
was inconsistent with s 92(1) of the Constitution. For that reason, they
contended that s 162(1) of the Act and the appointments of the judges of the
High Court to preside over the court were void. The first applicant alleged
that because of the Constitution invalidity of s 162(1) of the Act and the
appointment of the judges to preside over the court the rights guaranteed to
him under s 18(1) and 18(9) of the Constitution were likely to be
contravened should the hearing of his election petition commence.

Section 92(1) of the Constitution reads:

"92(1) The power to appoint persons to preside over a special court shall
vest in the President after consultation with the Judicial Service
Commission; provided that Parliament may provide that the Chief Justice may,
after consulting the Judicial Service Commission, appoint a person holding
the office of judge of the High Court to preside over a special court for
such period as he may specify."

A "special court" is defined in s 92(4) of the Constitution to mean:

"(a) the Administrative Court established by s 3 of the Administrative Court
Act [Chapter 7:07]

(a1) the Fiscal Appeal Court established by s 3 of the Fiscal Appeal Court
Act [Chapter 23:01]

(a2) The Special Court for Income Tax Appeals established by s 64 of the
Income Tax Act [Chapter 23:06]

(a3) any court or other adjudicating authority established by law which
exercises any function that was vested in a court referred to in paragraph
(a), (a1) or (a2) on the date of commencement of the Constitution of
Zimbabwe Amendment (No 15) Act, 1998.

(b) any court or other adjudicating authority established by law other than-

1. a local court; or2. a court established by or under a disciplinary law
or3. a court established by or under an Act of Parliament for the
adjudication of small civil claims;

if there is no right of appeal directly or indirectly from a decision of
that court or adjudicating authority to the Supreme Court or the High Court.

(c) any court or other adjudicating authority established by law which is
declared by that law to be a special court for the purposes of this
section."

The application was served on the Chief Justice on 31 May. He appears to
have accepted the validity of the contention advanced by the applicants
because he thereafter consulted the Judicial Service Commission and the
Judge President on the appointment of the Judges of the High Court to
preside over the court. On 1 June 2005, a letter was sent to each of the
judges who had been appointed on 5 May. It reads:

"It has been brought to my attention that some of the litigants in the
electoral petition are unhappy about your previous appointment as a judge of
the Electoral Court because the Judicial Service Commission was not
consulted in terms of s 92(1) of the Constitution. In the event of my
appointment of you as a judge of the Electoral Court on 5 May 2005 not being
in accordance with the law it is hereby revoked.

Please be advised that I, in my capacity as Chief Justice of Zimbabwe and
after consultation with the Judge President and the Judicial Service
Commission have appointed you as a Judge of the Electoral Court with effect
from this day the 1st June 2005".

Acting on the authority of the letter of appointment some of the judges
refused applications by the petitioners to suspend the hearing and
determination of the election petitions pending determination of this
application. They also refused requests by the petitioners to refer the
question of the contravention of the declaration of rights arising in that
court to the Supreme Court for determination in terms of s 24(2) of the
Constitution.

It was contended on behalf of the applicants that the re-appointment of the
judges on 1 June 2005 was also invalid because there was no Act of
Parliament authorising the Chief Justice to appoint the judges of the High
Court after consulting the Judicial Service Commission and the Judge
President. It was further argued that the insistence by the Judges presiding
over the court to hear and determine the election petition and the refusal
to refer the question of the contravention of the Declaration of Rights
which had arisen in those proceedings to the Supreme Court for the
determination violated the petitioners' right to the protection of the law.

The applicants sought by way of relief a declaratory order in these terms

"It is declared that

1. The Electoral Court established by s 161 of the Electoral Act [Chapter
2:13] falls within meaning of a "special court" as defined by s 92(4) of the
Constitution.

2. Accordingly the manner of appointment of judges to it as provided in s
162(1) of that Act be and is hereby declared to be inconsistent with s 92(1)
and s 18 of the Constitution.

3. The initial appointments made by the third respondent to the Electoral
Court without consulting the Judicial Service Commission on the specific
appointments are accordingly invalid.

4. Additionally, any appointments made by the third respondent to the
Electoral Court without specifying the period of the appointment are
invalid.

5. All appointments made by the third respondent to the Electoral Court
after consulting the Judicial Service Commission without Parliament having
provided for the same are also declared to be inconsistent with s 92(1) and
hence s 18 of the Constitution and are accordingly invalid.

2. It is ordered that:

1. The appointments made by the third respondent to the Electoral Court,
whether made in accordance with s 162 of the Electoral Act [Chapter 2:13] or
made on 1 June 2005 are a nullity and set aside."

Only the first and second respondents filed opposing affidavits. The first
respondent is the Minister responsible for the administration of the Act.
The second respondent was cited because s 24(6) of the Constitution gives
him a right to be heard by the court on the question whether any law is in
contravention of the Declaration of Rights arising for determination in any
proceedings before it.

The contention advanced by the respondents in opposing the application was
that the Electoral Court was not a "special court" as defined in s 92(4) of
the Constitution. The argument was based on the fact that s 172(2) of the
Act gave to a party who felt aggrieved by a decision of the court on a
question of law a right of appeal to the Supreme Court. There was a right of
appeal from a decision of the Court to the Supreme Court (so went the
argument). The contention was therefore that Parliament was not obliged, in
the exercise of legislative power to provide for the appointment of persons
to preside over the court after consulting with the Judicial Service
Commission. Consequently the respondents denied that there was any
inconsistency between s 162(1) of the Act and s 92(1) of the Constitution.

The first question for determination is whether on a true interpretation of
s 172(1) of the Act there was no right of appeal from a decision of the
Electoral Court within the meaning of s 92(4)(b) of the Constitution. An
affirmative answer to the question will establish as a fact the applicants'
contention that the Electoral Court is a "special court" for the purposes of
s 92(1) of the Constitution.

A right of appeal is a matter of substantive law. The fact of its
non-existence can only be established on the construction of the statute by
which the court from a decision of which it is alleged that no right of
appeal was created. In this case the fact to be established requires proof
of a negative statement to the effect that there is no right of appeal for a
decision of the Electoral Court. The contention advanced on behalf of the
respondents to the effect that the Electoral Court is not a "special court"
because s 172(2) of the Act gives a party aggrieved by a decision of that
court a right of appeal on a question of law does not assist in the proof of
the negative fact in s 92(4)(b) of the Constitution.

New coalition to challenge ruling party

[ This report does not necessarily reflect the views of the United Nations]

HARARE, 31 Jul 2006 (IRIN) - Zimbabwean opposition political parties,
churches and civil society groups appear to have taken the first step in
forming a broad alliance to confront the ruling ZANU-PF party.

The alliance, dubbed 'Save Zimbabwe', invited a cross-section of Zimbabwean
society to debate the best way forward to end the political and economic
crises facing the country at a convention at the weekend organised by the
Christian Alliance, a multi-denominational grouping.

ZANU-PF was invited but did not attend the event because, according to
justice minister Patrick Chinamasa, "we do not want to be told what to do".
The government has a healthy majority in parliament, although the opposition
has questioned the fairness of past polls.

Morgan Tsvangirai, president of the anti-senate faction of the opposition
Movement for Democratic Change (MDC), and Prof Arthur Mutambara, president
of the pro-senate faction, met in public for the first time since the MDC
split over support for the reconstitution of the senate in 2005, and pledged
to forge an alliance to unseat the ruling party. Zimbabwe is provisionally
set to hold presidential elections in 2008.

The two leaders were joined by the presidents of other political parties,
who have promised to form a united front. "We now make a pledge that we just
don't speak unity within the opposition but that we act the unity. We as the
political leaders are the ones who can unite or divide the people," said
Tsvangirai.

Mutambara said he was prepared to surrender his presidency under a broad
alliance, on "condition that we return to the founding values of the MDC,
which include non-violence and respect for the constitution." Details of how
the coalition would be formalised are yet to be finalised.

The convention passed four resolutions: the need to form a unified
broad-based platform in the fight for democracy; the urgent need to come up
with a new constitution; the adoption of a democracy charter ensuring
equality among all Zimbabweans; the need to engage regional and
international organisations in creating a better understanding of the
Zimbabwean crises, with a roadmap for forcing the government to the
negotiating table.

"There is need for sustainable democratic confrontation and mass resistance
to create a situation where the government is compelled to talk to its
people to resolve the crisis. These should include resistance, targeted
towards bread-and-butter issues through boycotts, stayaways, defying unjust
laws, demonstrations and prayer marches," read part of the resolution.

Benjamin Mkapa, a former Tanzanian head of state, has been asked by regional
leaders to help find a solution to the divide between President Robert
Mugabe and an opposition that rejects the legitimacy of his government.
Delegates said they saw no problem with Mkapa acting as mediator, although
it was important that he meet a cross-section of Zimbabwean society and not
view the Zimbabwean crisis as a bilateral impasse between London and Harare.

According to President Mugabe, the crisis in the country stems from a
confrontation between Zimbabwe and Britain, the former colonial power, which
he alleges controls the MDC.

However, Jacob Mafume, of the pro-democracy Crisis Coalition, disagreed that
talks with London were needed. "It is not the people of Britain who have
inflation pegged at more than 1,000 percent; it is not the people of Britain
who have the shortest lifespan in the world. It is the people of Zimbabwe
who need to be engaged," Mafume told IRIN.

fd/he/oa

[ENDS]

Rival Zimbabwe Opposition Factions Take Step Towards Unity

VOA

By Jonga Kandemiiri & Ndimyake Mwakalyele
      Washington
      31 July 2006

Zimbabwe's political opposition has taken steps to establish a unified front
with the reconciliation of rival Movement for Democratic Change leaders
Morgan Tsvangirai and Arthur Mutambara this past weekend. The two men
embraced and shook hands at a Harare meeting and pledged to work together to
unseat the ruling party.

Mutambara said at the event, organized by the church humanitarian group
Christian Alliance, that he was ready to relinquish his post if the party
renounced violence and respected its constitution, implying he would be
willing to acknowledge Tsvangirai's seniority as the founding president of
the Movement for Democratic Change.

Tsvangirai called other opposition party leaders to the podium: Wurayayi
Zembe of the Democratic Party, Paul Siwela of the ZAPU Federal Party and
Daniel Shumba of the recently formed United People's Party. Tsvangirai told
his fellow politicians that as political leaders they have the power to
unite or to divide Zimbabwe's people.

Reporter Jonga Kandemiiri of VOA's Studio 7 for Zimbabwe asked analyst Farai
Maguwu of the Civic Alliance for Democracy and Governance if the opposition
has a chance of coming to power in Zimbabwe now that it seemingly has
united.

Parliamentary Liaison Officer Herman Honekom of the Africa Institute of
South Africa said the Christian Alliance had more success in bringing the
MDC leaders together than a similar meeting in Bulawayo last week organized
by the Bulawayo Agenda, because the church is perceived as more neutral than
that civic group.

Tsvangirai's call for unity is based on the realization that the parties are
much stronger together than they are apart, according to Honekom.

Residents of Harare welcomed the decision by opposition leaders to work
together. From the capital, correspondent Netsai Mlilo reported.

China, Zimbabwe to strengthen military ties

Xinhua

      www.chinaview.cn 2006-08-01 03:39:47

          HARARE, July 31 (Xinhua) -- China and Zimbabwe will strengthen the
military ties in the coming years in a bid to quicken the modernization of
the armed forces of the two countries, a Chinese military officer said here
on Monday.

          "The Chinese army will provide more assistance to the Zimbabwe's
defense forces in military materials and personnel training," Tian Jianjun,
military attache of the Chinese Embassy in Zimbabwe, said at a reception to
celebrate the 79th anniversary of the founding of the Chinese People's
Liberation Army held in Zimbabwe's capital city of Harare.

          In May this year, the Chinese military donated machines and
construction equipment worth of 1.5 million U.S. dollars to the Zimbabwe
Defense Forces. In 2005, China provided the armed forces for Zimbabwe with
39 military trucks and educational and medical equipment worth of more than
3 million U.S. dollars.

          Starting from 1960s, China has begun to help Zimbabwe to train
military officers. Every year since then, at least 20 Zimbabwean officers
have received various kinds of training in China.

          According to an agreement signed between the military forces ofthe
two countries, Zimbabwe will send 55 officers to China to receive military
and technical training in the period between 2006and 2007.

          Zimbabwe Defence Forces (ZDF) commander General Constantine
Chiwenga spoke at the reception, hailing the strong friendship between the
two armies.

          More than 100 people, including senior Zimbabwean officers,
military attaches of many foreign embassies to Zimbabwe and the members of
the Chinese military training team attended the reception. Enditem

Zimbabwe scraps system of guaranteed prices for gold

Business Report

August 1, 2006

By From Bloomberg

Johannesburg - Zimbabwe, Africa's fifth-biggest gold producer, had abolished
a system of guaranteed prices for producers of the metal, the country's
central bank governor said yesterday.

"With immediate effect, gold producers will face the world market gold
prices at the ruling market exchange rate, with no element of top-up gold
support prices," said Gideon Gono.

Prior to yesterday, gold producers received a guaranteed price in Zimbabwean
dollars from the central bank, which was higher than the world gold price
when translated at the official exchange rate.

The central bank has the right to buy all gold mined in the country. The
higher price partially compensated producers who buy spares and fuel at
higher black market rates.

Gold production fell 31 percent in the first half of 2006, Gono said.

Producers will also be allowed to keep 75 percent of earnings in foreign
currency accounts to meet running costs and will be forced to convert the
rest at the official rate.

Zimbabwe gold production had more than halved in the past three years after
the government imposed below-market prices, said the Zimbabwe Standard,
citing Chamber of Mines president Jack Murehwa.

Gold production fell to 11 tons from 24 tons due to the government's failure
to set competitive market rates, it said. Zimbabwean producers have to sell
their output to the central bank, which pays prices less than those offered
in the open market.

Zimbabwe's economy has shrunk every year since 2000 when President Robert
Mugabe began seizing white-owned commercial farms to redistribute to black
subsistence farmers.

To address this, Zimbabwe devalued its currency by 60 percent at the weekend
and slashed interest rates to pull the economy out of a six-year recession.

The currency was cut to Z$250 a US dollar from Z$101 following the
devaluation and after three zeros were knocked off the currency, said Gono.
The bank reduced its benchmark lending rate to 300 percent from 850 percent.

"These are extreme measures," said Goolam Ballim, the chief economist of
Standard Bank Group. "They are aimed at maintaining some sense of policy
pragmatism, but are unlikely to have a material impact on the economy."

Transcript of SW Radio Africa's Programme 'Hotseat', the 4th part of the discussion

SW Radio Africa Transcript

Transcript of SW Radio Africa's Programme 'Hotseat', the 4th part of the
discussion  in which Violet Gonda continues to talk with Tendai Biti,
Secretary General of the Tsvangirai MDC and Professor Welshman Ncube,
Secretary General of the Mutambara MDC and with Dr Lovemore Madhuku,
Chairperson of the National Constitutional Assembly.

Broadcast on August Tuesday August 1st 2006

Violet:  Thank you for joining us on the programme where we are talking to
opposition officials Tendai Biti and Professor Welshman Ncube and the
National Constitutional Assembly Chairperson, Doctor Lovemore Madhuku.  This
Tuesday, the three panellists discuss the challenges facing the
pro-democracy movement, and in particular, the relationship between the
opposition and civil society.  It has been said that the split in the MDC is
causing divisions in civil society.  So, I start by asking Dr Madhuku what
is the relationship between the two MDC's and civil society?

Dr Madhuku: There is no division in civic society at the moment and the
relationship between civic society and the two groups is very clear.  The
two MDC's are part of what we are calling, or, what everyone would describe,
as the pro-democracy movement in Zimbabwe.  We have obviously different
understandings over certain issues, and a number of important issues but at
the moment, we would want to see a situation where the two MDC's, alongside
other political parties and the Churches, the Trades Unions and so forth, we
work together towards getting some solution towards the crisis in the
country.   We would want to see a situation where we perhaps agree on, I don't
want to use the word 'road map', because it has been used by Tendai and I
may be accused of being closer to them, but the kind of understanding we
would want to see.  So, there is no division in civic society.  There are
different perceptions here and there and also a media obsession with wanting
to align civic groups with one or the other MDC group, but, I think in
reality there are no divisions.  There are, of course, from time to time,
emotive responses to certain issues on the basis of what is happening on a
day to day basis.

Violet:  Professor Ncube what is your comment on this as it's also reported
that your party had threatened to sponsor a parallel civil society in
Zimbabwe because of the allegations that the current bodies had sided with
the Tsvangirai faction?

Professor Ncube:  Well, as far as I know we have not threatened to sponsor
any parallel thing. We are a political party, we are not civil society.
There are some of our members who are in civil society who might hold views
which might be different from the dominant views in civil society.  Our
gripe with civil society is not that one individual or an organisation feels
that it is closer to this or that political party.  Our problem with civil
society at the moment has been what we might have been calling the deafening
silence on the values and principles for which civil society is supposed to
be fighting.  Here we are talking, for instance, of the issue of violence.
When we talk about violence in the opposition, when we monitor violence as
civil society, we must be monitoring all the violence which is taking place
perpetrated by ZANU PF and violence which is perpetrated by other actors
other than ZANU PF and condemning it and not turning a blind eye to it.
And, for us, civil society is about a new constitution.  Why are you about a
new constitution, for instance the NCA, the Lawyers for Human Rights and so
forth?  Why are they about that?  Because they are driven by democratic
values and for us it is important to continuously remind civil society, for
civil society to remind itself, that the space that it wants for civil
society, the democracy that it is fighting for, it must be insisting on that
democracy, it must be insisting on the observance of those values across the
board, including opposition political parties.  And, that is the point that
we have been making, and we get very, very worried when political parties in
the opposition and the ruling party want to reproduce themselves through
civil society.  You go to a ZINASU Congress; you find that a political party
is a sponsoring candidate for ZINASU.  You go to the University of Zimbabwe
you find political parties sponsoring candidates for the SRC at the
University of Zimbabwe, and so forth and so on.  So when you see a civil
society which is gearing itself to be an extension of a political party then
you have a problem.  Civil society must be there to play a critical role
regardless of which political party is in government.

Violet:  And, Tendai is it useful for political parties to align themselves
with civic society or with civic groups?

Tendai Biti: Well, the thing is, it's not about alignment; it's about
accepting the reality that civic society; and I'm talking about the
Pro-Democracy component of civic society, because not all civic society is a
society or is civil.  I think there are some that are collaborating with the
establishment, and there are some that are as much an integral part of the
exploitation of the people by the regime.  So it's not about alignment but
it's about working together either in a united front or in a popular font to
use Trotskyite language, in other words working towards common goals that
you want to achieve, and you can either do it on a broad general democratic
front, for instance we want a new constitution, or, you can target specific
micro issues, for instance a rates boycott in Kadoma and so forth.  And,
clearly, clearly, civic society in the democratic sense and political
parties in the democratic sense, require each other, and, as I said earlier
on, Zimbabwe is an unprecedented crisis of a Failed State.  The State itself
has surrendered all its responsibility towards the delivery of social
services, the delivery of economic conditions that allow citizens to
reproduce themselves on a day to day basis; I can give you millions and
millions of statistics.   In that case, it is quite clear that political
parties and civic society are in one end; we are in the sub-society, we are
in one end and the government and the State are in the other, and clearly,
all of us, I think, in civic society, have a new vision and that vision is a
new Zimbabwe and a new beginning, a re-start if you like.  And, if that is
the case, if that is the common denominator, surely, surely there must be a
basis of vertical and horizontal alliances.   So, in my respectful opinion,
civic society and political parties need each other, but I agree that
political parties do not have a right of determining the content and
programme of civil society and vice versa.   I think a lot of the problem
that has afflicted the position is: a) the 12th of October situation has not
helped.  Secondly, I think there is, if you don't engage in meaningful
political, physical, intellectual activity to which I think there has been a
gap, you will tend to fight each other internally; whether you are civic
society, whether you are political parties and so forth.  And, if civic
society and political parties are not generating activity on the ground,
they reduce themselves to airport activists, they reduce themselves to 4x4
activists, then you have a very crippled movement, either the political
movement or the civic society movement.   And, those two crippled pillars
cannot form a symbiotic relationship that has got synergies and chemistry,
and, I think that as civic society and political parties, we need to look at
ourselves in the mirror and say 'have we done justice to the dream and
hypothesis and adjectival process of a new Zimbabwe.  I've no doubt; mark my
words, that we owe it to future generations.  All of us are suffering.  Just
go into a supermarket and you get raped by prices!  $30 million will not buy
you anything.  The average Consumer Council or ZCTU minimum poverty salary
is now $60 million.  The average salary to the 10% of the population in
Zimbabwe that is employed is $8 million and 80% of our population are
surviving on US $1 a day and surely I think it shocks many of our friends
elsewhere that how are we coping and how are we normalising this clearly
abnormal situation.  I think future generations are going to laugh at us and
say 'look, what were you doing when things were burning; inflation in real
terms was 2500%, when the budget deficit as a percentage of Gross Domestic
Product was an unprecedented 60%, where were you?'  And, personally,
personally, I don't want not to have an answer, and I don't want to
rationalise my own failure on things that are subjective, things that are
temporal and things that can be addressed, and, I think we owe it to
ourselves to address those problems.

Violet: But, Tendai, do you agree that there is now a situation between the
civic groups and opposition parties that is not so different you know from
the ZANU PF approach that takes the view that if you don't support them, you
are the enemy?

Tendai Biti:  well, I mean, the organisation that I represent has not
accused any civic society, any body, any organisation in Zimbabwe that does
not agree with us as a sell out.   I think one of the things we are trying
to cultivate is tolerance and I think that for political parties, it is very
important not to be seen to be arrogant and it's very important not to want
to have your ideas and principles reproduced.  I am a genuine democrat and
as far as I'm concerned, the more the plural voices, the more the rainbow
voices, the better but I will not adopt a fascist approach in respect of how
civic society, and anyone else for that matter, should relate to us.  I
think that, in my view, what should define the relationship of political
parties and civic society is to not what we say, but what do we.   And, what
we must be doing right now, I've already said, is to have programmes on the
ground that are consistent with our aspirations.  And, as far as I'm
concerned, what defines our aspirations is the Zimbabwean crisis, is the
fact that we need food, we need jobs and we need Anti-Retrovirals, we need
to fight the collapse in our public health system.  That is the bottom line
and most of all, of course, we need a new constitution and we need some road
map to legitimacy.  To me, that is critical.

Violet:  Let me come back to Dr Madhuku.  Is there tolerance in civil
society bearing in mind that you are reported to have made statements
aligning yourselves to the Tsvangirai MDC because of the numbers, you know,
after the MDC split?

Dr Madhuku:  Ah, well, I think there has been a misunderstanding of what I
said at the time that this problem arose.  I think what I made clear was
that as a country we would have preferred one MDC and if there was going to
be a way of resolving it, and at the time I thought that the numbers game
was going to be an important way of reaching some settlement; some
resolution.  We didn't want a divided MDC.  And I made comments implying
that if we were to go by numbers then those with more numbers were supposed
to take the day.  But, some people challenged me that certain numbers were
more on the Tsvangirai group than on the others.  But, you would be taking
us back; it doesn't tell us what the effect of civic society relations and
political parties is.  What I would want to emphasise is; we should move
forward on the basis of what we believe we should do, in this case, it is to
advocate for an open democracy, we work together with different groups.  The
statements I made at the time of the split were made at the time to try and
contribute to how we could resolve the situation then.

Violet:  You know, it's been said that when somebody comes up with a plan on
how to remove the Mugabe regime then these divisions in the opposition will
disappear.  Do you agree that this is the problem; that no one has a plan
for removing Mugabe?

Dr Madhuku: Well, I think there is a plan, perhaps it has not been defined
but I agree with you that as soon as we agree to a programme, as soon as we
have a programme that we all support, the differences will go away.  That's
my view and that's been shared by many people.  If we have a direction and a
direction such as now being suggested that we should all advocate for a new
constitution, push Mugabe to embrace constitutional reforms then free and
fair elections under a new constitution.  If that were to be accepted as the
way forward, I believe that people in the MDC led by Morgan, people in the
MDC led by Arthur Mutambara and various other groups will all join hands and
work together.  The only difficulty I still see is that in the process of
fighting to achieve what we want to achieve, there are these elements that
come in, and some take the view that 'well, let's not focus on those
elements, let's just focus on the removal of Mugabe's system and so on.'
And, if you listen to Professor Ncube he seems to be saying that even in the
process, as we go through the process of trying to achieve what we want,
these side effects that come in should be addressed.  And, that is what
creates, I think, the differences that you have seen.  Some of us, in civic
society in particular, we have been accused of like what he refers to as
'silence', we would be pained by what is happening but at the same time feel
that 'well, let's not divert our attention, let's keep on focusing on a
particular thing, and there is a genuine difference of approach there.  How
far we take into account issues that arise in the process of us achieving a
broader goal; these things that come in.  Some believe those things,  small
things which I believe are small; are big enough to warrant our focus on
them.  Where others feel that 'well, these things that arise are not big
enough to warrant our focus, let's keep focusing on that broad agenda'.
And, perhaps we might need to discuss that, not in this programme, but as we
sit around together, Professor Ncube and others to discuss this.

Violet:  We have two more segments left with Tendai Biti, Professor Welshman
Ncube and Doctor Lovemore Madhuku.  It's a known fact that there's a major
crisis being faced in Zimbabwe but the question for many is why the
pro-democracy movement has not been able to capitalise on so many government
failures.  Join us next Tuesday when the panellists discuss the issue of the
road map to democracy and mass action.

South African police use rubber bullets against Zimbabweans

      By Tichaona Sibanda

      1 August 2006
      Police in South Africa last week resorted to using brutal force in
their quest to flush out illegal immigrants allegedly blamed for the recent
upsurge in serious crimes.As police intensified their campaign against well
armed gangs of robbers in Johannesburg, their conduct in some of the raids
is likely to come under mounting scrutiny.

      Eyewitnesses to one such raid said police stormed a block of flats,
Citrine court in Bellavista, Johannesburg and indiscriminately fired rubber
bullets into flats occupied by Zimbabweans. Windows were shattered and doors
smashed as heavily armed police fired at the unarmed civilians.

      Our correspondent in Johannesburg Thuso Khumalo said most of the
immigrants claimed they were wrongfully arrested and made to endure hours of
inhumane treatment at the hands of the special forces.

      'This block of flats houses many people from Zimbabwe and reports
suggest the raid was planned to target illegal Zimbabwan immigrants,'
Khumalo said.

      Human rights lawyers have already expressed concern at the excessive
force used and have complained to the authorities over some of the tactics.
Many of those arrested during last week's midnight raids included women and
children who were forced to lie face down and naked in sub-zero
temperatures.

      Over 350 people were picked up in the raids in an operation rolled out
by the police three weeks ago in an effort to curb the escalating cases of
high profile robberies. Human rights lawyers have also stressed the need for
an independent body to check and ensure accountability for the police
actions.
      SW Radio Africa Zimbabwe news

Fuel Subsidies For A2 Farmers Removed

The Herald (Harare)

August 1, 2006
Posted to the web August 1, 2006

Harare

THE Reserve Bank of Zimbabwe has removed fuel subsidies for A2 farmers but
has retained the facility for A1 farmers in a bid to thwart rampant dealing
by large-scale farmers.

A1 farmers receive small amounts of fuel compared to A2 farmers who have
been receiving huge amounts of subsidised fuel and selling it on the black
market.

Yesterday, RBZ Governor Dr Gideon Gono said the facility would now be
availed to A1 farmers only, as they really needed the fuel.

Both A1 and A2 farmers were buying the fuel at $11 000 per litre while the
general public has been buying fuel at between $500 000 and $600 000 per
litre.

The subsidised fuel has been subject to abuse, especially by A2 farmers some
of whom bought thousands of litres only to resell at the parallel market.

"Our national development policies should ensure that agriculture is a
viable business that is attractive to the investing public through the
removal of subsidies on inputs, but paying the subsidy on the output end
through compensatory pricing policies on the farm outputs.

"Such financing schemes must, however, increasingly wean farmers away from
over-dependency on Government, leaving targeted support only to specific
vulnerable groups, such as A1 farmers," said Dr Gono.

He said it was also important for Government to urgently implement
recommendations of the land reform audit, in order to clear any grey areas.

"Stabilisation of the agriculture production also requires that greater
efforts continue to be placed to fight crime on the farms currently being
perpetrated by a few who are bent on tarnishing the virtues of the land
reform programme."

Zanu PF must stop taking rural folks for a ride

New Zimbabwe

By Onismus Manungo
Last updated: 08/01/2006 05:20:59
IT IS appropriate to respond to weekend statements by Francis Nhema, Tourism
Minister, when he addressed a campaign meeting in Binga for the forthcoming
rural district council elections.

Nhema is the MP for Shurugwi where I come from and is regarded in political
circles as a 'Young Turk'. Sadly for our generation which Nhema belongs to,
we are witnessing the disastrous consequences of the Zanu-PF school of
cronyism and patronage that has severely incapacitated those we view as the
leaders of tomorrow. In this respect, we can only look into the future with
great pessimism in the event that Zanu-PF succeeds in perpetuating its
tyrannical rule at all costs.

In the words of Nhema and of course his Zanu-PF party, "Binga does not have
a Member of the House of Assembly, Senators and councillors who have the
capacity to spearhead development and as a result, the district is lagging
behind and it will not take an outsider to address this."

It is the Minister's second remark that caught my attention and the subject
of my response to his utterances. He said: "This is a problem that we need
to address in these forthcoming rural district council elections. We need to
win all the wards for the ruling party and be in charge of the council so
that Government programmes can be implemented."

According to Nhema & Co, the capacity of an individual to initiate and
spearhead development is a prerogative of those in Zanu-PF. To substantiate
this Zanu-PF philosophy, Nhema blatantly proclaims that government
programmes can only be implemented if the ruling party wins all the wards
and take charge of the council. Nhema acknowledges that Binga is lagging
behind and locates the reason in the failure by the people of the area to
vote for the ruling party. It doesn't take a fundi to conclude that it is
government policy to stifle development in areas controlled by the
opposition. If we look around our country today and look at the pattern of
development of any kind, the trend is evidence that certain regions have
been systematically short-changed. Over the years there has been an outcry
from Matabeleland politicians, notably Welshman Mabhena, on the lack of
serious commitment by the government to bring meaningful development to the
region. Practical examples include the Zambezi Water Project that remains a
pipe dream to this day and the Bulawayo- Nkayi road-surfacing project.

It is my duty as a citizen to protect the interests of the poor souls of
Binga by calling 'sin' by its name. It is abominable for government to
abdicate from its constitutional obligation to the people on the grounds of
their political affiliation. Zanu-PF has shown over the years that the
accommodation of opposing views in its political space cannot be tolerated;
as a result they have invested heavily in fighting the opposition since the
days of Zapu at the expense of tangible development. If the resources
invested in fending off the opposition since independence could be
quantified, I am quite positive the figures will be frightening.

Where I reside in the Diaspora, the opposition controls the local council
and the MP also belongs to the opposition. You can only marvel at the way
the operations of local government complement government initiatives and
policies to the extent that you never notice the existence of party
politics. Yes, they will grill each other in parliament but when it comes to
issues at the heart of the people they cooperate. This level of political
maturity is still distant to the African political amphitheatre and the
likes of Francis Nhema should be at the forefront of nurturing a culture of
inclusiveness rather that to become hostage to the machinations of a
political coterie that is past its sell by date.

Only last week another so called 'Young Turk", Chief Fortune Charumbira, was
busy spewing gibberish at a chiefs banquet in the resort town of Kariba that
all traditional chiefs will ensure a Zanu-PF victory in the forthcoming
rural district council elections.

These Zanu-PF hypnotized politicians masquerading as traditional chiefs were
busy treating themselves to three-course meals while their subjects were in
distress. It is this degree of self-aggrandizement that the winds of change
blowing over our country seek to obliterate. History records that the wishes
of the people have always prevailed, just as the spirit of the liberation
struggle brought us independence, in the same vein our resilience in
tackling repression will indeed restore our long lost independence. The
Nhemas and Charumbiras of the Zanu-PF fame must brace themselves for a rude
awakening because the state of our economy is a catastrophe beyond the
capacity of Zanu-PF.

Why is it that when it's election time, the Nhemas, Charumbiras and their
lot become hyperactive and thereafter dump the people only to re-emerge
towards another election? I was recently home in Shurugwi where Nhema is the
MP, and having been there three years back; I was shocked with the current
state of the roads and the growth point (Tongogara) that now resembles a
disused tobacco barn. So, it now seems like even where Zanu-PF is political
totem, things are falling apart. I find it rather naïve for Nhema to sell
his party to the Binga folk who when they visit relatives in Shurugwi where
he is MP they see no difference and are told by their kith-and- keen that
things were better under Smith.

There is also a tendency in Zanu-PF circles during election time to use the
names of departed heroes to gain political capital. In Binga Nhema asserted,
"We all know that the people of Binga have always been behind (the late Vice
President Dr Joshua) Nkomo and actively participated in the liberation
struggle but I do not understand how they will desert their home for alien
parties."

Here again, Nhema is not being honest with the truth when he professes not
to understand why the people of Binga vote for the opposition, none knows
better than him given his relationship to the late Father of the Nation. If
the truth be told, given the current situation obtaining in our country, our
fallen heroes must be turning in their graves. And another point of
correction for the MP, we do not have alien parties in Zimbabwe, maybe in
the eyes of Zanu-PF. Yes, the people of Binga played a huge role during the
struggle and Nhema has no justification to assume they should blindly
support Zanu-PF as if they (Zanu-PF) have a monopoly on the liberation
struggle. The struggle was a collective effort and we recognize the
sacrifices of the leaders but not to the extent of allowing the gains of the
struggle to be reversed to the Stone Age. Posterity would judge us harshly
if we allow such to happen.

The message for Zanu-PF is to stop taking people for a ride especially the
vulnerable folk in the rural areas. You can continue to peddle falsehoods on
the causes of the current crisis that has reduced our people to paupers
(which in the Zanu-PF you refer to as surmountable challenges) but people
are not foolish, they know the absolute truth on the location of the causes
of their suffering and so allow them to freely express they wishes. No
amount of coercion is sustainable in the long term and sooner rather than
later the much-desired change will usher in a novel political dispensation
and consequently economic recovery and stability.

Onismus Manungo is a concerned Zimbabwean citizen and writes from the UK

Budiriro residents call for removal of Mugabe and illegal Harare Commission

      By Tererai Karimakwenda

      31 July 2006
      At a meeting organised by the Crisis Coalition last Thursday the
residents of Budiriro resolved to demonstrate peacefully for the removal of
the illegal commission running Harare and called for Robert Mugabe to go.
They also urged civic and opposition leaders to lead from the front and
resolved to boycott the exorbitant rates being charged by the commission.
Israel Mabhoo, vice chairman of The Combined Harare Residents Association
who was one of the panellists, told us these strong opinions were expressed
despite the presence of Zimbabwe republic police. He said he was proud to
see that most of the participants were women of all ages who showed interest
in the affairs of the country.

      The other panelists were Dr. John Makumbe, political commentator and
UZ lecturer and Itai Zimunya from the Crisis in Zimbabwe Coalition. Mabhoo
said over 200 residents participated in the public meeting. He said they
expressed their opinions without fear, regarding everything from the
liberation struggle to the Makwavarara led commission running the capital.

      Regarding Mugabe, Mabhoo said the Budiriro residents made it clear
they want him to go. They said the liberation struggle was not won by
ZANU-PF alone but it involved all Zimbabweans who sacrificed. The subject
then turned to the recent street protests organised by CHRA during which
several CHRA officials were arrested. Mabhoo said Dr. Makumbe explained how
officials including Mabhoo himself had been leading the protests from the
front. In response the Budiriro residents urged civic leaders and opposition
officials who are calling for mass protests to follow the CHRA example. They
said they want to see top officials on the street leading the masses during
any protests they call for.

      As for the illegal commission running Harare. The residents resolved
to boycott rates because there is poor service delivery and no
accountability for the large sums of money being collected. They also plan
to organise peaceful demonstrations at City Hall calling for the removal of
the commission. Mabhoo said they intend to stay at City Hall until their
demands are met. Refuse collection is one of the services that the residents
complained about the most. Mabhoo said they resolved to dump their garbage
at the local district offices and urged other areas to do the same.
      .

      SW Radio Africa Zimbabwe news

ZESA cheating customers by estimating bills

      By Tererai Karimakwenda

      31 July 2006
      The Zimbabwe Power Supply Authority (ZESA) is reported to be making a
lot of money by generating bills for electricity that do not reflect the
customers' usage and using threats to shut off power as a way to force them
to pay. Due to corruption and a lack of resources the power company is
failing to send workers out to read the electric meters that determine how
much power was used within a given period. Instead ZESA officials are
billing residents using estimated figures that are supposed to be based on
the previous billing amount. But residents in Harare's low and high density
areas say the numbers are so inflated they more than double the actual meter
readings. Many of them cannot afford to pay and as a result their power has
been turned off. ZESA is demanding even more money to turn the power back
on.

      One of our contacts in Tafara told us that ZESA is also not sending
out bills regularly. Her family recently went for 2 weeks without
electricity while trying to find out how much they owed. She told us Harare
residents afraid of losing power are having to visit the ZESA head office to
get information. But officials there simply tell them they do not know what
they are talking about or that the billing department made a mistake.

      The queues at ZESA offices are said to be very long and the process
very frustrating.

      It is largely believed that the parastatal has no paper to print the
bills and lacks other resources, which are affecting administrative
procedures. We reported last week that the town of Bindura had lost its
water supply because the pumps were damaged when power was switched back on
after load shedding by ZESA. Our contact in Tafara reports that household
items like televisions and refrigerators are being damaged as well due to
load shedding. People are being advised to turn off all electric equipment
when the power goes off.

      The Tafara area is hit by power cuts so often that our contact laughed
when we asked about it. She said it seems no-one at ZESA is using their
common sense because they get power sometimes at night while they sleep. It
is then turned off during the day when they need it. Many businesses are
losing valuable production time due to these unpredictable power cuts.
Corruption at ZESA is so rampant the directors have been replaced several
times within the last few years.

      .

      SW Radio Africa Zimbabwe news

Youth militia harassing travellers and stealing money at border posts

      By Tererai Karimakwenda

      1 August 2006
      There is deep concern over the role of the youth militia squads that
have been deployed at border posts by the government. Reserve Bank governor
Gideon Gono announced during his mid-term monetary review this week that the
youth would be stationed at all border crossings to monitor the illegal
movement of money. The RBZ chief said the youth would work along with the
Zimbabwe Republic Police and immigration officials. But according to our
Bulawayo correspondent Themba Nkosi travellers using the Beitbridge border
post say the youth militia were deployed there weeks ago and have been
harassing people and stealing money. Nkosi added that he has heard many
complaints from people who say the youth extort money from illegal border
jumpers.

      Nkosi spoke to two travellers who crossed into Zimbabwe from South
Africa 2 weeks ago. They told him that groups of youth militia in the
notorious green uniforms that earned them the name "green bombers" were
already stationed at Beitbridge at that time. They also remembered that most
of the youth spoke Shona and did not understand any English or Ndebele. The
pair allege that the youth were boisterous and were harassing people for no
apparent reason. They were also searching cars and checking passports
without any immigration officials present. Nkosi said this is how they get
the opportunity to blackmail travellers and demand money for safe passage.

      In the past the violent behaviour of the youth militia during
elections and at public demonstrations and opposition rallies has caused
much controversy. There is much documented evidence of their brutal
activities yet very few, if any at all, have been prosecuted. Life in their
youth camps has been reported to be grim. It has been alleged that there is
very little food but plenty of alcohol and drugs provided by the government
to keep them aggressive. Nkosi said it is feared that their new role at
border posts created with the blessing of the RBZ chief Gono will spell doom
for many travellers.

      Nkosi reports that the new currency introduced by Gono this week has
caused much confusion in Bulawayo. He said the bank tellers and shop owners
do not understand it yet and the touts on minibuses are having great
difficulty converting to the new standards.

      SW Radio Africa Zimbabwe news

JAG Open Letter Forum No 434

Please send any material for publication in the Open Letter Forum to
jag@mango.zw with "For Open Letter Forum" in the subject line.

---------------------------------------------------------------------------

Letter 1

Dear JAG,

Goodness Gumdrops...have you seen the new CFU license fees? Non Operators -
36million, people like us (i.e. small) 365million...and if you are Really
Big and Important, 1.3Billion...that's if you pay by the 1st October, It all
goes up if you don't.  Well now is the time when the Faithful are counted.
Have a good day,

Anonymous

---------------------------------------------------------------------------

Letter 2

Dear Family and Friends,

Parliament re-opened on Tuesday this week but all attempts to watch the full
event on state run TV were in vain. There was a
power cut just a few minutes after the special repeat broadcast began and
the night went dark and quiet - again. Those few brief minutes however had
been more than enough to raise eyebrows. A number of "cultural reforms" have
been undertaken by Zimbabwe's parliament, which now resembles a safari
lodge. A stuffed leopard and two antelope heads hang on the walls and a
leopard skin adorns the ceremonial chair used by Mr Mugabe. Two enormous
elephant tusks now frame the Presidential chair and it was between these two
great teeth that Mr Mugabe stood to address the House. Near him sat
Mrs Mugabe on a high backed green leather chair, which had been carefully
placed on a striking zebra skin. Hardly had these images registered and
before the speech began, the electricity went off.

The images of our leaders sitting amongst elephants and kudu, zebra and
leopard are particularly ironic now as the country plunges back in time and
people ravage the environment in order to survive. Our lavishly decorated
safari parliament is about as far away from the reality of life in Zimbabwe
as you can possibly imagine.

Every morning the sound in urban and rural Zimbabwe is that of wood
chopping. All day every day you see lines of women walking with bundles of
great long tree branches balanced on their heads and men with hand carts and
wheel barrows piled high with newly chopped indigenous wood. All day, every
day and in every direction you see smoke. Some is from urban
householders cooking outside on open fires. More is from incessant
uncontrolled fires streaming across the horizon, consuming everything in
their path. Seeing the massive amount of wood collecting and looking at
horizons permanently smudged with smoke, you cannot help but wonder how
Zimbabwe's wildlife can possibly survive this unrelenting attack on the
environment. Grass for grazers is reduced to ash, leaves for browsers is
burnt out and trees for shade, shelter and habitat are felled. Undoubtedly
the abundance and variety of birds, reptiles, mammals and insects is under
severe threat as the assault on our environment continues unchecked.

The reality of life in Zimbabwe has been shocking in the last week. In my
home area the electricity was cut for over 29 working hours during the week.
The price of a loaf of bread shot up from one to two hundred thousand
dollars overnight. The foreign currency rate soared on the black market with
one British Pound selling for one million Zimbabwe dollars.

Appreciating cultural reforms of elephant tusks and leopard skins is a world
away from bread we can't afford, bills we can't pay and hours and hours on
end when we cannot work or conduct our business as the electricity is off.
Reality in Zimbabwe draws ever further away. Until next week, thanks for
reading, love cathy 29 July 2006 Copyright cathy
buckle http://africantears.netfirms.com My books "African Tears" and "Beyond
Tears" are available from: orders@africabookcentre.com ;
www.africabookcentre.com

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