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Zimbabwe central bank chief defends printing of money

Zim Online

Fri 4 August 2006

      BULAWAYO - Zimbabwe central bank governor Gideon Gono has defended
Harare's decision last year to print money to repay the International
Monetary Fund (IMF) saying the practice was normal the world over whenever
countries were emerging from conflict and needed cash to rebuild.

      Gono, who was responding to charges by business leaders that the
government's decision to print money to pay the IMF and salary increments
for civil servants fuelled inflation, said the Reserve Bank of Zimbabwe
(RBZ) would not hesitate to switch the printing machines on again in future
for as long as the money was used to rebuild the economy.

      "The printing of money for the productive sector is not inflationary,
but only becomes inflationary when the money is used for speculative
purposes," Gono said in an address last Wednesday to a congress of the
Confederation of Zimbabwe Industries underway in the city of Bulawayo.

      Inflation, which critics blame on the RBZ's habit of printing
worthless paper money and over-expenditure by the government, is pegged at 1
184.6 percent, the highest such rate in the world.

      Both Gono and his boss President Robert Mugabe label inflation
Zimbabwe's enemy number one.

      But the RBZ governor said there was nothing sinister about Zimbabwe
printing money because Mugabe's controversial land redistribution programme
over the past six years was a revolution and the government needed cash to
finance rebuilding and development progammes in the post-conflict period.

      "There is nothing sinister with Zimbabwe doing likewise (printing
money) since the country is coming out of a conflict and the land reform
exercise was an agricultural revolution and to support the post conflict
period the country had to print money," Gono said.

      Economic experts say the chaotic and often violent land redistribution
exercise under which the government seized productive white-owned farms and
parceled them out to landless black peasants destabilised the mainstay
agricultural sector, worsening Zimbabwe's economic crisis, rated by the
World Bank as the worst in the world outside a war zone.

      The farm seizure programme is also blamed for causing severe food
shortages in Zimbabwe because the government failed to give inputs support
and skills training to black villagers allocated former white farms, leading
to a 60 percent drop in food output since the land reform programme began in
2000.

      Gono said there was need to support black farmers with inputs and the
government had no option but to print more money to support the farming
sector.

      The RBZ chief, who earlier this week announced a raft of monetary
reforms including re-denominating the currency which he also devalued by 60
percent, cited several cases of countries that had printed money in the past
to shore up productive sectors of their economies.

      "During the post 1945 period, several countries in Europe resorted to
printing money to support the re-construction period and countries like
Germany, South Korea, Russia and China all printed money to support
development projects," said Gono.

      Mugabe's government, which is battling its worst ever economic crisis,
printed more than Z$20 trillion which it used to buy foreign currency to pay
outstanding debt to the IMF. The multilateral money lender had threatened to
expel Zimbabwe if the southern African country had failed pay up.

      The government also this year printed another $61 trillion to pay
unbudgeted salary increments for civil servants, which analysts say could
only help push inflation that some say could surge beyond 1 500 percent
before year-end.

      Hyperinflation is one of many severe symptoms of Zimbabwe's economic
crisis that has also spawned shortages of fuel, electricity, essential
medicines, hard cash and just about every basic survival commodity.

      Critics blame the crisis on repression and wrong policies by Mugabe.
But the 82-year old President, who has ruled Zimbabwe since the country's
independence from Britain in 1980, denies mismanaging the country and says
its problems are because of economic sabotage by Western governments opposed
to his seizure of white land. - ZimOnline


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Central bank embarks on new currency education campaign

Zim Online

Fri 4 August 2006

      HARARE - Officials from the Reserve Bank of Zimbabwe (RBZ) yesterday
fanned out across the country educating citizens about a new currency
introduced this week, amid reports that in some parts of the country people
were refusing to take the new money.

      In sweeping currency reforms that also included a 60 percent
devaluation of the dollar, the RBZ slashed three zeroes from every banknote
and said it would introduce a new "family of bearer cheques" with less
zeroes by August 21.

      Bearer cheques are promissory notes first introduced by the RBZ three
years ago at the height of cash shortages in Zimbabwe. They are not official
legal tender but are used in the same way as money.

      The RBZ said the currency changes are meant to bring stability and to
lessen the burden for Zimbabweans who were experiencing enormous
inconvenience because of bearer cheques with too many zeroes.

      Retail shops and residents in the two biggest cities of Harare and
Bulawayo this week appeared to be fast adjusting to the new currency.

      But in some parts of the country there has been a lukewarm response,
with for example some public transport operators and informal businesses in
the eastern border town of Mutare refusing to take the new currency.

      Public transporters in Mutare, the country's fourth biggest city, said
the new currency had proved to be a real headache especially because the old
money was still in circulation.

      "We charge $70 000 (of the old notes) per single trip. Tell me, how
much change should I give someone who hands in $500 of the old notes?

      "It's causing headaches so we have just resolved as operators here to
accept the old notes only until further notice," said Naison Bhudhura, a
commuter omnibus operator.

      ZimOnline reporters also tried to buy from shops using the new
currency but found no takers as most indigenous-owned shops refused to
accept the money.

      "I don't even know how to convert my prices to suit this new currency.
I will wait a bit until the dust settles and everything is explained to us.
Otherwise, for now, I am only accepting the old money," said Marlon Matari,
who runs a clothing shop in the city.

      Only larges supermarkets and departmental stores in Mutare were
accepting the new currency.   An economist with a Mutare commercial bank,
Edson Marongo, said hesitation by people in the city and in some parts of
the country to use the new currency was understandable because the RBZ had
not taken time to fully explain the currency changes before implementation.

      "The bank just ambushed people with the new notes and everyone is
still trying to come to grips with it. They now have to win the confidence
of especially the informal economy so that the money can start circulating
smoothly," he said.

      The informal economy has grown almost at the same pace that the formal
economy has shrunk and now employs more people as well as providing more
goods and services than the formal economy.

      With confusion threatening to derail the currency reforms, the RBZ was
said to have dispatched more than half of its workforce out to smaller towns
and rural areas to explain how the new money works as well as advising
people on how to dispose of the old money.

      "Our teams are holding meetings with people in rural areas at central
points such as shopping centres or even under trees while in urban areas
they are moving around sticking posters explaining the new currency
measures," said an RBZ official who did not want to be named.

      The police - who have installed roadblocks in major towns arresting
people found with larger amounts of the old money than is permitted by the
law - have also been roped in the RBZ's information a campaign, with large
posters explaining the new changes pasted on walls at most police stations
across the country.

      RBZ governor Gideon Gono was not immediately available for comment on
the matter. But the central bank chief on Tuesday toured wholesalers,
supermarkets and banks in Harare to personally ensure they were accepting
the new money as well as complying with the new currency regulations. -
ZimOnline


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Protesters want UN to act on Zimbabwe report

Zim Online

Fri 4 August 2006

      JOHANNESBURG - At least 300 Zimbabweans on Thursday marched to the
United Nations (UN) offices in Pretoria demanding that the world body acts
on recommendations put forward by a UN special envoy over last year's
clean-up exercise.

      The march, which was organised by the Crisis in Zimbabwe Coalition and
the South African Women's Institute of Migration (SAWIMA), comes a year
after UN special envoy Anna Tibaijuka compiled a damning report on the
housing demolitions.

      The protesters said they wanted the UN to act on the recommendations
of the report after President Robert Mugabe government ignored Tibaijuka's
recommendations.

      The demonstrators also urged the African Union and South Africa to
exert their influence to help end a six-year old political crisis in
Zimbabwe.

      The UN said at least 700 000 were left without shelter after Mugabe
sanctioned the demolition of houses and backyard shacks in urban areas in
what he said was an attempt to clean-up cities and towns and smash an
illegal foreign currency market.

      The home demolition exercise directly affected another 2.5 million
people, according to the UN report.

      Tibaijuka said the military-style campaign, dubbed Operation
Murambatsvina, had violated the rights of the poor and recommended the
prosecution of the brains behind the exercise.

      She also recommended that Harare compensates all those whose property
was demolished during the campaign. Zimbabwe rejected the recommendations
outright. - ZimOnline


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Latest Currency Move Increases Chaos



Business Day (Johannesburg)

August 3, 2006
Posted to the web August 3, 2006

Sarah Hudleston
Johannesburg

THE Zimbabwe business community is feeling the fallout from the radical
devaluation of the Zimbabwean currency by the country's reserve bank. This
saw the Zimbabwean dollar lose 60Percent of its value following the issuing
of a complete new set of notes.

While it will make life easier for Zimbabweans forced to carry around piles
of cash to pay for shopping, critics say the government's initiative
"Project Sunrise", is wholesale theft and is solely aimed at boosting the
country's depleted statutory reserves.

Zimbabweans are allowed to bank up to a total of Z$100m in old notes before
August 21. Companies are limited to banking Z$5bn, except for established
companies with high cash turnovers such as supermarkets who can exceed this
figure.

And while many banks are unable to cope with people wishing to change their
money before the August 21 deadline, Zimbabwe's police force has set up
roadblocks on the main routes, searching cars and confiscating large amounts
of cash from people carrying more than Z$5m.

According to an eyewitness, one motorist had Z$8bn confiscated in Gweru.

Zimbabwe also has stepped up surveillance at border posts by its tax
authority and the police to investigate and intercept the "illegal" import
and export of local currency.

This, says Reserve Bank governor Gideon Gono in his monetary policy
statement issued on Tuesday, is because the authorities can account for only
$Z10-trillion of the Z$43-trillion in circulation.

In the meantime, the cash that is pouring into the banks is boosting the
country's statutory reserves and is a ploy to dig Zimbabwe out of a hole,
says accountant Nicola Watson.

"While in theory the changes could be good, but there are going to be a lot
of people, particularly in the rural areas, who are not going to be aware of
the new regulations and find that the cash they have is worthless," she
said.

Roy Bennett, the Johannesburg-based national treasurer of the main
opposition the Movement for Democratic Change agrees that the new changes
are in effect a form of theft. "It just shows that Gono is desperate. The
government has completely lost economic control."

However, some people welcomed the changes.

Mike Garden, MD of Softrite Harare, which manages companies' payrolls, said
he welcomed the new controls.

People should not be forced to carry around large amounts of cash as it made
them targets for criminals, he said.

But instead of quelling the parallel currency market, the monetary changes
have boosted it. Harare-based economist John Robertson said now that
exporters were allowed to keep their foreign currency, money for the
parallel market is going to be in short supply.


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New currency already in short supply as Zimbabweans convert, convert, convert


      By Tererai Karimakwenda

      3 August 2006
      Zimbabweans trying to get rid of their old money before the 21 st of
August, as stipulated by Reserve Bank gGvernor Gideon Gono this week, are
finding it is not going to be easy at all. It is reported that the new
bearer cheques are already in short supply and some people were receiving
old cheques at the banks. It is not clear why this is happening just days
after Gono announced that 3 zeros would be dropped from Zimbabwe's currency
and gave people 21 days to convert their old notes. Police, youth militia
and RBZ officials are reported to be manning road blocks at all major entry
points leading to the capital. There have been many reports that these teams
are confiscating foreign currency and Zimbabwean dollars, illegally.

      Our Harare correspondent Simon Muchmewa reports that bank officials
have already started informing people converting their old money that they
can only accept amounts that are less than the maximum allowed by the new
regulations. Muchmewa said they do not seem to have enough of the new
currency to meet the huge demand. He witnessed several incidents in Harare
banks where people expecting to withdraw cash in the new currency were given
old notes and refused to accept them. He added that in the end they had to
accept whatever they were given because they needed money for daily living.

      Muchemwa told us there is also chaos in the shops, on the streets and
on the minibuses. He said people are trying to get rid of old money by
spending it before the 3 week deadline but street vendors as well as shop
owners are refusing to accept it. This is because they also have to find
ways to get rid of it themselves or chance losing it. Muchemwa said there
are arguments everywhere regarding money because nothing seems to be clear
and no-one seems to have the answers.

      Muchemwa described how people are being subjected to extremely
embarrassing and inhumane treatment by money squads as they claim to be
searching for excessive amounts of cash. He talked to several individuals
who alleged that they had lost all the forex they were travelling with at
road blocks leading to Harare. The search squads are said to be benefiting
from the situation and have become a law unto themselves.

      SW Radio Africa Zimbabwe news


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Moves To Cut 21-Day Changeover Period



The Herald (Harare)

August 3, 2006
Posted to the web August 3, 2006

Harare

THE Reserve Bank of Zimbabwe (RBZ) will seek powers from the Ministry of
Finance to reduce the 21-day changeover period the nation had been given to
exchange the old family of bearer cheques for the new ones that were
introduced effective August 1.

Reserve Bank governor Dr Gideon Gono said it had come to the apex bank's
attention that some people and businesses (who were hoarding cash) were
"trying to beat the system" that had been put in place before the expiry of
the changeover period.

"The Reserve Bank might seek to invoke powers to shorten the time and simply
say that's the end," he told delegates attending the three-day Confederation
of Zimbabwe Industries (CZI) annual congress in Bulawayo.

According to the central bank, there was less than $15 trillion out of the
$43 trillion circulating in the formal economy, with between $10-$15
trillion suspected to have been smuggled out of the country.

The RBZ boss said the bank had not consulted industry when it initially
announced the changeover period and would seek powers to reverse it as
business had suggested the period was too long and should at maximum, have
been seven days.

Some countries that had undertaken similar currency reforms had even had a
changeover period in a single day, he told the delegates.

"After all, it's normal that businesses are supposed to have been banking
the money anyway," he said.

The governor, however, said the central bank might be forced to
geographically extend the changeover period to give a chance especially to
those living in the rural areas to hand in back the old notes.

He warned certain sections of the community well known for stashing at home
cash from their business operations, that Reserve Bank officials would be
"knocking at their doors".

The central bank would soon employ youths, "give them adequate training" and
empower them to visit companies checking if they had proper banking
accounts, he said.

In the future, he said, officials tasked with licensing business operations
should make it a prerequisite that every business must have a bank account
first before being granted a licence.

Meanwhile, banking institutions in the capital were being kept busy with
individuals and corporates rushing to exchange the old notes for the new
ones before the expiry of the 21-day changeover period.

Threshold for depositing of old bearer cheques has been set a maximum of
$100 million and $5 billion (of the old cheques) for individuals and
corporates respectively.

Announcing the introduction of the new family of bearer cheques, which began
circulating in the economy on Tuesday, the central bank said the old notes
would cease to be legal tender on August 21.


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Security Minister Mutasa accused of intimidating magistrates in Chinamasa case


      By Tererai Karimakwenda

      3 August 2006

      Magistrates in Manicaland have refused to try Justice Minister Patrick
Chinamasa, citing intimidation by the State Security Minister Didymus
Mutasa. It is no secret that the independence of the judiciary in Zimbabwe
has been compromised for years now but this is the first time that all
magistrates in a province have turned down a case, due to interference by a
government official. As Justice Minister Chinamasa runs the courts, yet he
is facing charges of obstructing the course of justice. He is being accused
of trying to influence key witnesses in political violence incidents that
occurred in Mutasa's Makoni North constituency during the run-up to the 2005
parliamentary elections.

      But the chief magistrate Herbert Mandeya withdrew the charges before
plea on Tuesday after the state claimed that not a single magistrate in
Manicaland province was willing to hear the case. Lawyer Innocent Gonese,
who is the shadow Justice Minister in the Tsvangirai MDC, told us the
magistrates informed an open court that they had been intimidated by
Minister Didymus Mutasa. They said the powerful minister also accused them
of being members of the MDC. According to the Financial Gazette newspaper
Mutasa this week denied intimidating the magistrates. He reportedly said:
"They are lying about me and I don't even know that person saying those
things at all."

      Gonese told us these developments are very disturbing and gave us an
update on the case. He said: "What has now happened is that there has been a
separation of trial. The co-accused are now facing the judge. One of the
persons with whom they were jointly charged has been removed from remand and
the state will proceed by way of summons. And from previous experience
sometimes that actually sounds the death of that particular case." Gonese
said this reinforces that there is no rule of law, no democracy and no
separation of powers in Zimbabwe. And he added that this reflects badly on
ZANU-PF.

      Gonese also expressed deep concern for the witnesses in this case. He
said: "The trial of the minister has failed to take off. And at the rate
that this has been going it may take a long time before the matter actually
comes up for trial and during that period you never know what might have
happened to the witnesses. Witnesses can die. Witnesses can relocate."
Gonese also said that it was now going to be difficult to ask the witnesses
to testify twice on the same subject.

      Observers have said Mutasa's threats to the judiciary appear to be a
way of rewarding Chinamasa for interfering with witnesses in his own
violence case in which he was exonerated. Gonese said he views all these
developments as a reflection of the internal struggles within ZANU-PF which
have created two camps vying for power after Mugabe leaves office.

      Late Thursday several reports said that Attorney General Sobusa Gula
Ndebele had roped in a retired magistrate Phenias Chipopoteke to handle the
matter. A judiciary officer confirmed that the matter has been set down for
August 8 and 9. Chipopoteke said he was approached to take up the matter and
agreed. A report on the New Zimbabwe website says Gula Ndebele had been
angered that the magistrates had refused to preside over Chinamasa's trial
without first having notified him and this had resulted in Chinamasa getting
off the hook.

      SW Radio Africa Zimbabwe news


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Retired magistrate takes over Chinamasa trial

New Zimbabwe

By Staff Reporter
Last updated: 08/04/2006 02:27:44
ZIMBABWE'S Attorney General Sobusa Gula Ndebele has moved swiftly to
resuscitate the collapsed trial of Justice Minister Patrick Chinamasa.

Chinamasa appeared to have escaped an obstruction of justice trial this week
after magistrates in Manicaland province refused to preside over the case
following threats from State Security Minister, Didymus Mutasa.

Ndebele has roped in a retired magistrate Phenias Chipopoteke to handle the
matter that has been set down for August 8 and 9, the judiciary officer
confirmed Thursday night.

Chipopoteke said: "I was approached to take up the matter and I agreed."

Sources said Gula Ndebele had been angered that the magistrates had refused
to preside over Chinamasa's trial without first having notified him
resulting in Chinamasa -- accused of attempting to block the prosecution of
Mutasa's supporters on violence charges -- getting off the hook Tuesday.

Mutasa's 23 supporters face violence charges relating to an attack on
Mutasa's rival, James Kaunye, in the 2005 Zanu PF primary elections. Kaunye
is a war veteran and a member of Zanu PF's Manicaland Provincial
Coordinating Committee.

The two were vying for the Makoni North constituency.

Legal sources told New Zimbabwe.com Thursday that "it was not surprising"
that Ndebele had intervened. He is said to be at odds with Chinamasa on a
number of issues, and is generally inclined to sympathise with Kaunye, a
former colleague in military intelligence.

Chinamasa denies Kaunye's claims that he tried to bribe him so that he
doesn't cooperate with the prosecution team as their star witness.

In his defence outline, Chinamasa said he would say he approached Kaunye as
alleged but he will say the purpose of the 2004 visit was to "cultivate an
atmosphere of peace and camaraderie among party members in Makoni district."

Chinamasa added that he had suggested to Kaunye the need for a meeting with
Mutasa -- something he claims was accepted by the former, but rejected by
the latter.

Chinamasa will say: "Kaunye seems to harbour hatred against all people whom
he perceives as Minister Mutasa's allies and he will fight and try to
destroy them."

Chinamasa will further tell his trial, in which he is jointly accused with
four other men, that Kaunye saw him as "an extension of Minister Mutasa and
it is not difficult to see the witness's motive for lying."


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Entrenched Corruption Undercuts Democratic Development in Transitional Countries

Freedom House
 
Press Release FOR IMMEDIATE RELEASEContact: Amanda Abrams 
 
 
Washington, D.C., and Nairobi, Kenya,August 3, 2006

A new study finds that entrenched corruption remains a principal obstacle to democracy in transitional countries throughout the world.  The study, Countries at the Crossroads 2006, was issued by Freedom House today. 

The study examines the state of governance in 30 countries in which democratic institutions remain fragile or which are ruled by authoritarian governments. Countries at the Crossroads measures four areas of governance: accountability and public voice; civil liberties; rule of law; and anticorruption and transparency. In almost every country included in the survey, the lowest scores were recorded for corruption and a lack of transparency. The study further noted that since 2004, when this group of countries was last evaluated, a lack of progress or, in many cases, an outright decline in performance on combating corruption was evident.  The poor corruption performance held across geographical regions and governing systems.    

"This study clearly shows that corruption is a pervasive problem throughout the world and a major obstacle to the strengthening of democratic institutions," said Freedom House Executive Director Jennifer Windsor. "The report is telling us that those who support democracy must continue to search for policy solutions that can increase transparency and hold governments genuinely accountable," she added.

Zimbabwe, Azerbaijan, Yemen, Kazakhstan and Bahrain were the five weakest performers on the anticorruption measure.  Zimbabwe was the worst performer of all 30 countries in this category. The Zimbabwe report observes that "the primary interest of the Mugabe government is to retain power through a system of patronage that includes access to both state and private assets. The ruling ZANU-PF party owns a wide range of businesses, allowing party elites to profit personally."

The report found that countries such as South Africa and Kenya, which have relatively sound performance in terms of accountability and public voice, nevertheless posted low scores for corruption.

Even in states where reform opportunities have emerged, the challenges of implementation have been daunting.  In Ukraine, for instance, the report finds that the exposure of corrupt institutions that followed the Orange Revolution "was not accompanied by a change in the structural incentives for politicians and civil servants to blur the line between private and public interests."

"These reports illustrate that sound democratic institutions do not emerge spontaneously after credible elections," said Sanja Tatic, managing editor of Countries at the Crossroads. "Even most reform-oriented governments find it extremely challenging to root out corruption and transform key state institutions," she added.

The report's anti-corruption and transparency section analyzes a government's performance in fighting corruption by evaluating the existence of laws and standards to prevent and combat corrupt practices, investigating the enforcement of such measures, and examining overall governmental transparency.

The study also noted increased constraints on press freedom in some countries where corruption is most rampant. A properly functioning press plays a vital role in increasing public access to government activities, exposing corruption and airing debates about how it can be best addressed.

"The news media are a prime target of corrupt regimes, which seek to keep their activities hidden in the shadows," said Christopher Walker, Director of Studies at Freedom House and co-editor of Countries at the Crossroads.

The survey presented a number of other significant findings:

  • Respect for the rule of law has dramatically declined across the survey since 2004, with decreased scores in nearly half of the countries examined.
  • Torture in police custody remains the most pressing human rights problem in more than half of the countries examined.
  • Countries that have achieved particular improvement in the past two years include Kyrgyzstan, Georgia, Morocco and Ukraine. Those that have declined the most are Nepal, Zimbabwe and Nigeria.
  • In nearly two-thirds of the reports, experts' recommendations emphasize a need to balance the political playing field, especially in the context of election campaigns, where incumbents often dominate and prevent the press from providing useful information to the public. 

Countries at the Crossroads is an annual report that provides detailed written analysis and comparative statistics, as well as recommendations presenting suggestions for policy action, on two sets of thirty states. Each set is evaluated every two years. This year's report examines Armenia, Azerbaijan, Bahrain, Cambodia, East Timor, Jordan, Morocco, Nicaragua, Nepal, Nigeria, Georgia, Guatemala, Guyana, Indonesia, Kazakhstan, Kenya, Kyrgyzstan, Malawi, Malaysia, Pakistan, Yemen, Ukraine, Sierra Leone, South Africa, Sri Lanka, Tanzania, Uganda, Venezuela, Vietnam and Zimbabwe.

The findings are available in essay form as well as in a package of charts and graphs, and country narratives are available online.

Freedom House, an independent private organization supporting the expansion of freedom throughout the world, has been monitoring the state of political rights and civil liberties around the globe since 1972.


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Mkapa must deliver us from shadow of fist

New Zimbabwe

THE talk in Zimbabwe these days is of a supposed political initiative
steered by former Tanzanian President, Benjamin Makapa, aimed at restoring
damaged relations between Harare and London in particular and the the
Western nations in general.

While it is true that relations between Zimbabwe's recalcitrant ruler and
the rest of the world are currently bad, it is generally false to assume
that Zimbabwe's problems lie squarely with the bad relations.

The truth is that Zimbabwe's problems are more of an indegenous nature
characterised largely by political misconduct on the part of the first
person, sheer thuggery, rapacity, obduracy and the general disregard for the
common people's right to political choice.

The supposed initiative rests upon an upside down premise because it assumes
that if Mugabe begins to fly to Europe freely with his retinue, nomarlcy
would return in Zimbabwe.

It disregards the fact that total political reform will have to occur in
Zimbabwe if we are to start speaking of any return to international
acceptance.

Those who have purchased wholesesale into the fallacy in question ignore the
fact that the Mkapa initiative lends credence to the false claim that Mugabe
and the Zimbabweans are victims of foreign devils. President Mugabe is
evidently happy with this false notion because it absolves him of any wrong
doing and places the blame on the door on an imagined enemy.

Yet the reality remains that once Mugabe abandons his quarrelsome brand of
politics characterised by brazen brutality, the thuggish silencing of
political
opponents, banning of basic legitimate means of protest, closure of
newspapers, seizure of private property, theft, bench-packing, corruption,
murder and many other related evils, Zimbabwe would have firmly set itself
on the route to international recognition.

It is, however, saddening to note that some people who otherwise should be
respected and have a moral obligation to side with the victims of autocracy
and economic incompetence that is emblematic of Mugabe's rule are actually
tumbling over one another in a scramble to be heard first in the support of
this still-born initiative.

Witness how they ignore the self evident fact that Mugabe was being
dishonest when he said Kofi Anan had purchased into his explanations on the
way forward on Zimbabwe and that he had blessed the Mkapa initiative.

If there is a person who knows that Mugabe is his own enemy, and therefore
nobody's victim, that person is Annan.

Therefore, it is hard to imagine, let alone believe, that he would have
bought into the fallacy that Zimbabwe's route out of this mess is via talks
with London.

To allow Mugabe to continue peddling the "false fight" he has erected
between himself and London will be to allow him to pull wool over our faces
at the risk of letting him squirm off the hook.

Mugabe's tactic is to impress it upon his gullible supporters and the lost
"African patriots" that his problems began with Britian's neo-colonial
machinations. It is his idea to win sympathy from people who will naturally
side with him since Zimbabwe is a former British colony.

Why should Mkapa waste time and resources shuttling between Harare and
London when the easiest way is for Mugabe to abondon his autocratic ways?
The fact of the matter is that Mkapa should start a project of delivering
Zimbabwe from under the shadow of the fist which has been cast over her for
the last 26 years.

He must tell his fist-waving and air-punching friend to do himself and
Zimbabwe a service by abondoning his totalitarian project characterised by a
gross and brazen disregard for the entire package of internationally
accepted norms of political conduct.

He should abondon his behavior which is totally rejected by modern
conscience and has visited upon us varieties of moral degradation.

This is why it is understood why London has refuted the idea of talks with
Mugabe. It would be a political blunder for Tony Blair to accept this
approach towards a better Zimbabwe because he would be helping Mugabe's
claims that he is reposnible for Harare's woes.

Mugabe dug his own hole. Zimbabwe's inflation is not high because anybody in
London pushed it that high. Things are generally upside down in Zimbabwe
because political legitimacy is lacking and it is so because Mugabe's
government has an outright and renowned diregard for other people's
fundamental right to make personal choices without being accosted by any
liberation war hero.

Isn't it clear that a peaceful Zimbabwe where rights of all are respected,
where political crime is punished, where law enforcement agents are
politically neutral, where judges are not puppets and the security agents
are professional, a person like Mugabe would not survive?

Mugabe's destructive political profile explains the character of a person on
a mission to create conditions under which he will thrive characterised by
violence, deception, insults, quarells and swearing.

That is why he is always thumping rostrums, punching invisible enemies with
a clenched fist issuing unsolicited ripostes trying to convince people that
he is fighting anybody.

It is not wholly offiside to suggest that the symbol of Mugabe's rule should
be a clenched fist dangling menacingly over Zimbabwe with a dark shadow cast
across the entire country with terrified people being sent helter-skelter.

Mkapa should know that instead of us living under the fear of a neo-colonial
demon, we are living under the shadow of an angry and paranoid master's
fist.

Mthulisi Mathuthu is a Zimbabwean journalist and New Zimbabwe.com columnist.
He is currently on leave writing a book. Views expressed here are his own.
He can be contacted at: thuthuma@yahoo.com


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British politicians wary of deporting Zimbabweans home


      By Tichaona Sibanda

      3 August 2006
      Thereis a glimmer of hope for over 15 000 failed asylum seekers from
Zimbabwe who face immediate deportation from the UK following indications
from influential British politicians that the issue needs to be looked at
carefully before the forced returns begin. Despite the Home Office on
Wednesday winning the right to send them back home, top politicians from the
Labour, Conservative and Liberal Democrat parties are uncomfortable with the
British government sending people back to a brutal regime whose intolerance
to different political views is well documented.

      The Home Office indicated soon after the judgement that enforced
returns to Zimbabwe could begin as early as next month but influential
Shadow Home Office secretary for the Conservatives David Davies on Thursday
issued a statement urging for restraint and more scrutiny on the issue.

      Although all political parties and government are not in dispute with
the Asylum and Immigration Tribunal ruling, there is growing concern among
many British MPs that the Zimbabwean issue of asylum seekers needs to be
looked at differently.

      As such, senior members of the MDC will be meeting for an urgent
Indaba Thursday night to try to bring a political dimension to the issue.
Frantic efforts are now well underway to engage politicians from all parties
to try and negotiate a political decision to halt the removals.

      Harris Nyatsanza, a human rights activist who has barely slept the
last four days, is spearheading this initiative after spending up to 20
hours per day canvassing for support from British members of Parliament.

      'Firstly politicians here respect the rule of law and as such they
agree with the outcome of the court decision. However they feel
uncomfortable to see the British government sending people to Zimbabwe as
everyone knows the type of government that is in power there,' Nyatsanza
said.

      He added that almost every MP he has discussed this issue with
sympathises with the failed asylum seekers, including the British public who
have also voiced their concern during radio and television talk shows.

      'This is a good start, at least we have the support of many British
people who have been debating the issue on both radio and television and we
also have the support of influential British MPs, including those from the
Labour government. What we need to do now is to approach this politically
since the legal route has come to an end,' said Nyatsanza.

      SW Radio Africa Zimbabwe news


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MDC election expert deported by immigration authorities


      By Lance Guma

      3 August 2006
      The man credited with rigging several elections for Robert Mugabe has
engineered the deportation of Topper Whitehead, a computer expert who helped
the opposition MDC build up evidence of the rigging. Last month the
Registrar Generals office led by Tobaiwa Mudede refused to renew Whitehead's
Zimbabwean passport and instead issued him with a Prohibited Immigrant (PI)
order, signed last year. This follows a long history of harassment in which
the election expert has had his home ransacked by police this year under the
pretext they were looking for subversive materials. The raid however saw
security officials confiscating valuable evidence that the MDC wanted to use
in the election petitions.

      The weekly Financial Gazette quotes Home Affairs Minister Kembo Mohadi
saying, "it is not in the public interest for me to disclose the reasons why
I deemed Roland Whitehead to be an undesirable inhabitant or visitor to
Zimbabwe.' The paper also quotes the Chief Immigration officer Ellasto
Mugwadi as saying they had confiscated his travel documents after he
surrendered his passport voluntarily to the Registrar General offices. 'He
had taken South African citizenship and as we speak he is in South Africa,'
Mugwadi claimed.

      In an interview with Newsreel David Coltart, a member of the MDC legal
team that worked with Whitehead, described the deportation as 'malicious.'
He explained that allegations of Whitehead having dual citizenship were not
true as he only used a temporary South African passport for travel to Zambia
to take up a job opportunity. This happened because authorities delayed the
renewal of his Zimbabwean passport. Coltart described Whitehead as a fine
patriotic Zimbabwean who had done a lot for his country, adding that
deportations of this nature should be reserved for people like drug dealers
and not someone like Whitehead.

      Whitehead was a key member of the MDC electoral challenge team and his
efforts alongside others culminated in the auditing of the 2002 presidential
election ballots between August and November last year. Mudede was found in
contempt of a court order that sought the handing over of these ballot
boxes. By deporting Whitehead, Mudede has got his revenge, Coltart said.

      SW Radio Africa Zimbabwe news


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Currency, tariffs stunt Zimbabwe mobile firms

Reuters

      Thu Aug 3, 2006 2:46 PM GMT

By Stella Mapenzauswa

BULAWAYO (Reuters) - Zimbabwe has been left behind in a booming mobile phone
industry in Africa as a recession and foreign exchange crunch hampers the
three operators' ability to expand their networks, a leading industry
official said.

"In terms of penetration rate, we are the lowest in Africa. The market
potential is currently estimated at 30 percent. Sitting at 6 percent we have
just scratched the surface," said Douglas Mboweni, chief executive of
leading operator Econet.

In Zimbabwe, crippled by an eight-year recession, customers wait months for
mobile phone SIM cards to come on the market, and most are forced to buy
them at nearly 10 times the official price on the thriving black market.

"It is about forex injection. We can make all the Zimbabwe money we want,
but unless we have the forex we will not do much expansion because the
inputs ... are forex denominated," Mboweni told an annual congress of
business leaders in the southern city of Bulawayo late on Wednesday.

Local mobile firms are also saddled with a heavy load of international
traffic -- forcing them to pay out scant foreign currency to counterparts in
recipient countries -- because Zimbabwe's low tariffs made it cheaper to
make international calls than most other parts of the world.

"At 14 cents a minute we are the lowest in the region in terms of tariffs.
Kenya is around Kenya 40-50 cents ... South Africa around 20 cents. Zimbabwe
today is a dumping ground for traffic," Mboweni said.

An unreliable telecommunications system has worsened the lot of Zimbabwean
companies struggling to survive in a harsh economic climate that has seen
some fold under soaring inflation and frequent electricity cuts.

Officials say local firms are operating at about 30 percent capacity on
average.

"With no communication you cannot do business. There is actually a stumbling
block," said Callisto Jokonya, president of the Confederation of Zimbabwe
Industries.

Last month Econet, which has about 57 percent of the local subscriber share,
said it aimed to increase subscribers by more than two-thirds to 800,000
after securing a $20 million network expansion loan from the Cairo-based
African Export-Import Bank.

Econet competes with two other operators, privately owned Telecel Zimbabwe,
which has 17 percent of the local market, and state-run Net*One with 26
percent.


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'CSC Privatisation Not So Soon'



The Herald (Harare)

August 3, 2006
Posted to the web August 3, 2006

Harare

THE proposed privatisation of the Cold Storage Company (CSC) could take much
longer than expected as the beef producer is yet to secure potential
investors, seven months after the Government announced plans to offload the
loss-making parastatal.

It was only last week that CSC chief executive Mr Ngoni Chinogaramombe
revealed that the company had "just" commenced discussions with potential
investors under the company's privatisation programme.

Sources within the company indicated that it has been an uphill task to
scout for potential investors mainly due to its unhealthy financial position
and poor performance.

"It has been difficult for us to get investors as soon as we had
anticipated," said sources.

"But we hope things are now taking shape and by the end of December, we
would have completed our privatisation programme," they said without
elaborating.

Mr Chinogaramombe was also equally not at liberty to give more details on
the potential investors.

"We have just commenced discussions with prospective investors into CSC in
the context of the company's privatisation programme and given the nature of
the discussions we find it strategic not to unduly appear in the media,
especially talking about our problems," was all he could say.

In December last year, Finance Minister Dr Herbert Murerwa said new partners
would be brought into CSC, as part of Government efforts to resurrect the
privatisation policy.

By courting new investors and subsequently listing on the Zimbabwe Stock
Exchange, CSC intends to raise fresh capital. Production levels have
plummeted over the years due to a combination of drought and a string of
in-house challenges.

The company has been failing to pay workers while several farmers terminated
beef

supplies, resulting in the company operating at 20 percent capacity.

CSC has the potential to generate US$40 million annually, but exports to the
lucrative EU market were suspended indefinitely following a foot-and-mouth
outbreak in Matabeleland.

The parastatal earned a paltry US$325 000 from canned products last year.


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20 Countries Expected For Malaria Conference



The Herald (Harare)

August 3, 2006
Posted to the web August 3, 2006

Harare

DELEGATIONS from almost 20 African countries are expected to converge in
Zimbabwe for the annual East and Southern Africa malaria conference later
this month.

The malaria review and planning conferences were effective in sharing best
practices and peer review mechanisms among countries.

The meeting will bring together representatives of national malaria control
programmes of Botswana, Comoros, Eritrea, Ethiopia, Kenya, Madagascar,
Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Uganda,
Tanzania, Zambia and Zimbabwe.

Partners and multilateral agencies supporting malaria control such as World
Health Organisation (WHO), United Nations Children's Fund, the African Union
regional economic community health desk, malaria research institutions, the
private sector, non governmental organisations and other stakeholders, were
also expected to participate at the meeting. In a statement, WHO country
office said the meeting, scheduled for August 14 to 18 in Harare, was aimed
at providing a forum for reviewing, sharing experiences, and planning
interventions to accelerate access to malaria prevention and treatment
towards achieving the Millennium Development Goals.

The theme for this year's malaria conference is "East and Southern
Africa --Accelerating Malaria Prevention and Treatment".

Other objectives of the conference were to review country progress,
performance and challenges in implementing the 2005/2006 country malaria
control plans as well as to update country drug policy profiles and
implementation of drug and malaria in pregnancy policies in East and
Southern Africa.

The meeting would appraise the implementation of indoor residual spraying
and insecticide treated nets programmes with the aim of improving community
access to the interventions as well as finalise and identify strategies for
accelerating malaria prevention and treatment in the 2006/2007 country
action plans.

While malaria is largely preventable and curable, it has remained a leading
cause of death in the country.


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Molebatsi unrepentent on Zim remarks

Mmegi, Botswana

      RYDER GABATHUSE
      Staff Writer
      8/3/2006 3:02:24 PM (GMT +2)

      FRANCISTOWN: Tswapong North MP Oreeditse Molebatsi is steadfast that
his comments last Friday on Zimbabwe were fair even if they differ with his
party position.

      "I don't think that even the Botswana Democratic Party (BDP)
government is happy with our relations with Zimbabwe. The government
continues to lose a lot of money as a result of its relations with
Zimbabwe," observed Molebatsi.

      He insisted that Zimbabweans are not good neighbours. "I don't take
them to be good neighbours, no matter how I look at them." Last week Friday,
Molebatsi shocked some of his BDP colleagues when he told Parliament that
Zimbabweans are not good neighbours and Botswana should stop any relations
with the country if it wants to excel in economic growth.

      He was debating a motion by Palapye MP, Boyce Sebetela, that called on
Parliament to request government to develop and implement a national citizen
contractors' skill and capacity rating system to guide procurement
preference schemes.

      BDP MPs, Sebetela, Shoshong MP Duke Lefhoko and Francistown-West MP
Tshelang Masisi supported Molebatsi's statement. Molebatsi, who is formerly
an employee of the Botswana Railways (BR) says recently over 1 000 BR
employees lost their jobs because of the attitude of the government of
Zimbabwe.

      In particular, he cited the diversion of transit goods from the
Francistown-Bulawayo route to the Bulawayo-Beitbridge route, which has
negatively affected BR profits.

      "Today, a lot of things are expensive in the country because of the
mode of transport of bringing goods into the country from South Africa.
There is a heavy movement of trucks along the major roads which results in
road accidents," he said. He was worried that costs of maintaining major
roads are high because of the volume of trucks on the roads.

      "Given this picture, Zimbabweans are not good neighbours." He was
worried that the government was silent on the employment of a foreign CEO of
the BR who is from Zimbabwe for that matter. He expressed a worry that the
Zimbabwe on government continues to show that they do not want anything to
do with Botswana yet Botswana accommodates them as simple as that.

      "We've got to do something as a country if we want to catch up on the
economic front and we should not go down with Zimbabwe," he stressed.
Explaining the BDP position on its relations with Zimbabwe, BDP deputy
executive secretary, Fidelis Molao told Mmegi yesterday that Molebatsi's
comments do not necessarily reflect those of the party.

      "I don't think the party can go to that level. I believe that we have
a policy of good neighbourliness with Zimbabwe and other neighbours," said
Molao. He indicated that it was unfair to judge Botswana's relations with
Zimbabwe basing on isolated incidents perpetrated by individuals. Asked how
he could reconcile the party's position versus Molebatsi's comments.

      "I think if this can be an issue it will be tackled internally. He is
an MP and was speaking from Parliament and so far nobody has raised an issue
on his comments." Molao observed that it was unfair that the MP was painting
Zimbabweans with the same brush. "As a country, we better allow the law to
take its course on those that are bent on breaking it."

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