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Worn out fire equipment compromises safety at Zim airports

Zim Online

by Wayne Mafaro  Friday 21 December 2007

HARARE - Aged and worn out firefighting equipment at Zimbabwe’s airports
frequently breaks down, compromising the safety of travellers and airport
staff, according to the Civil Aviation Authority of Zimbabwe (CAAZ).

In an internal document that was shown to ZimOnline on Thursday, the CAAZ
said most of the fire engines and ambulances at airports including at the
country’s main Harare International airport were long past their designed
lifespan.

The confidential document titled: “2008 Proposed Capital Projects Budget”
says the CAAZ planned to spend US$4.5 million buying replacement fire
tenders and ambulances from an unnamed French company.

“The objective of the project is to replace the existing fleet which has now
passed their useful life and most of them are out of service. This current
fleet is breaking down regularly which is not safe for airport operations as
this often results in the airport being downgraded,” CAAZ said in the
document dated October 25, 2007.

The CAAZ did not say how it planned to raise the required foreign currency,
which is in critical short supply in the country, but said the French
supplier was expected to deliver fire engines and ambulances between January
and July 2008 and on condition all payments were done timeously.

Previous such deals between foreign suppliers and President Robert Mugabe’s
government or its agencies have collapsed after Harare failed to pay due to
an acute shortage of hard cash that has seen Zimbabwe also fail to import
food, essential medicines, fuel and electricity.

The foreign currency crunch is one of the most visible signs of Zimbabwe’s
deep recession that first set in 1999 after the International Monetary Fund
withdrew financial support following differences with Mugabe over fiscal
policy and other governance issues.

The economic crisis picked up pace after Mugabe began seizing white-owned
land in 2000 for redistribution to landless blacks. The controversial farm
seizures destabilised the mainstay agricultural sector, which saw production
plunging by about 60 percent to leave the country short of food.

Mugabe’s farm seizures also hit hard Zimbabwe’s once impressive
manufacturing sector that had depended on a robust farming sector for orders
and inputs.

Most of Zimbabwe’s industries have since the beginning of farm seizures in
2000 either scaled down operations to below 30 percent of capacity or shut
down altogether, in a country where unemployment is more than 80 percent. –
ZimOnline


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China to supply engine kits to state-owned bus firm

Zim Online

by Cuthbert Nzou  Friday 21 December 2007

 HARARE – China is to
supply engine kits for the refurbishment of buses for state-owned Zimbabwe
United Passenger Company (ZUPCO), as Beijing bolsters ties with President
Robert Mugabe’s government that is shunned by Western countries. In addition
to engines, China will also supply several buses to ZUPCO which services
some of Zimbabwe’s remotest rural areas that are known for backing Mugabe
and his ruling ZANU PF party.

Local Government Minister Ignatius Chombo told ZimOnline that the deal was
aimed at ensuring reliable transport in rural arrears.

“We have ordered 100 engines from China to refurbish our old AVM and DAF
buses. So far we have refurbished five buses," said Chombo, who strongly
rejected allegations that provision of buses to rural travellers was a ploy
by ZANU PF to curry favour with voters ahead of key elections next year.

Chombo did not say how much the deal that is being financed by the Reserve
Bank of Zimbabwe is worth.

ZUPCO public relations manager Richard Mlambo did not respond to questions
e-mailed to his office despite having acknowledged their receipt.

The public transporter is among several companies in which the state is a
major shareholder or is sole owner that economic analysts and the
International Monetary Fund have urged the government to fully privatise and
save cash.

Mugabe’s government has cultivated relations with China as part of a new
"Look-East" policy adopted after a fall out with Western countries that have
imposed targeted sanctions on the Harare administration as punishment for
failing to uphold human rights and democracy.

China - on a drive to expand economic links with Africa - has since 2000
paid particular attention to Zimbabwe, selling Mugabe's government fighter
aircraft and agreeing to a number of business deals in exchange for mining
and other concessions.

Beijing has however been accused of casting a blind eye to human rights
abuses by Mugabe’s government and other rogue regimes in Africa such as in
Sudan in its bid to gain access to their raw materials. - ZimOnline


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Mugabe, Msika clash over Sibanda

Zim Independent

Constantine Chimakure/ Dumisani Muleya

VICE-PRESIDENT Joseph Msika reportedly remonstrated with President
Robert Mugabe at the high table where they were sitting last week during the
closing session of the Zanu PF congress as tempers flared over militant war
veterans leader Jabulani Sibanda’s bid to address the gathering against the
party’s decision to bar him.

This came as more evidence emerged this week that Mugabe was
unprocedurally endorsed as the party’s presidential election candidate next
year.

Senior politburo members who were seated close to the scene of the
drama in which Msika and Zanu PF chair John Nkomo almost walked out of the
congress in protest at Sibanda’s actions said the fiery ruling party deputy
leader lashed out at Mugabe in remarks that left him shaken. The public
brawling by officials also shook onlookers.

When Sibanda tried to hijack the congress, Msika turned to Mugabe and
said: "This is your rubbish, we warned you that this boy is undisciplined
and look at what has happened. I can’t take this rubbish, I’m going. John
let’s go."

Those who witnessed the unprecedented incident — which was broadcast
live on state television — at close quarters said Msika and Nkomo then
hastily left their seats and walked a few steps as they tried to leave the
congress. Members of the politburo and other dignitaries who were seated
close to Mugabe had stood up as the congress descended into pandemonium.

Sensing danger and furious at the chaos, Mugabe jumped out of his seat
and charged towards where Nkomo had been sitting while conducting
proceedings. He grabbed the microphone and ordered: "All of you sit down."
Silence quickly descended.

Sources said last week’s extraordinary congress was unconstitutionally
convened by the politburo which has no powers under the current Zanu PF
constitution to do so.

Zanu PF legal affairs secretary Emmerson Mnangagwa told his party’s
politburo on November 28 that last week’s congress was convened by the
politburo apparently in May. In terms of the Zanu PF constitution, the
politburo has no powers to convene an extraordinary congress.

This was compounded by revelations last week that provisions of the
annual Zanu PF conference were deliberately "mixed up" with those of
congress through Article 6 (30) (3) of the constitution to secure Mugabe’s
confirmation.

It was also said congress had unprocedurally "endorsed" Mugabe through
a confirmation process without the usual nomination procedures. This was
said to be clearly unprocedural and unconstitutional.

Exhibiting fury and shock after intervening to prevent Msika and Nkomo
from walking out, Mugabe then addressed the congress, saying what was going
on was unacceptable.

"What a terrible ending to a harmonious, beautiful, absolutely proper,
legal congress…What will the media say?" Mugabe said. He said the media
would report there was chaos and confusion at the congress. Mugabe also said
the party would not tolerate indiscipline and narrated developments around
the Sibanda saga.

However, he was also at pains to avoid an outright attack on Sibanda,
prompting senior party officials to claim that there was a plot — after Zanu
PF officials had agreed the war veterans leader would not speak — to allow
him to make an address through the back door.

It is understood Zanu PF leaders, including politburo members such as
Emmerson Mnangagwa and Didymus Mutasa, wanted Sibanda to address the
congress despite the party’s decision to block him. Sources said Mugabe by
an act of commission or omission was also responsible.

Mugabe and Mnangagwa had of late been defending Sibanda who organised
the "million man" march to secure the president’s endorsement as candidate
in next year’s elections. Msika and Nkomo, among other top party officials,
have been attacking Sibanda. They even boycotted his march.

The sources said Nkomo and Msika were further irked by Sibanda and the
women’s league’s attempts to have them and other politburo members censured
by Mugabe for failing to turn up for the march.

War veterans and the women’s league reportedly convened a meeting at
the Zanu PF headquarters on December 5 to review the million man march and
agreed that the ex-PF Zapu leaders were against the endorsement of Mugabe.

"The meeting took close to two hours and it was agreed between the war
veterans and the women’s league that the failure by Msika and Nkomo to turn
up for the march reflected that there were divisions in the presidium on
Mugabe’s candidature," one of the sources said. "Sibanda made it clear that
Msika and Nkomo were against the president and as such should be disciplined
for being disrespectful to Mugabe, the politburo and the central committee."

The sources said a series of meetings were held last weekend to pacify
Sibanda and the disgruntled war veterans.

At one of the meetings in Harare on Friday night, the sources said,
Mnangagwa reportedly assured Sibanda of Mugabe’s backing and told war
veterans to continue campaigning for the re-election of the octogenarian
leader.

"Mnangagwa made it abundantly clear that Mugabe was happy with the
work of the war veterans," one of the sources said. "The war veterans were
told not to make public announcements denouncing Nkomo and Msika and to
remain loyal to Mugabe.

Mnangagwa roped in Sibanda and the war veterans in September to
spearhead Mugabe’s campaign to win the party’s endorsement.

This week, Sibanda placed an advertisement in The Herald pledging the
war veterans’ loyalty to Mugabe and congratulating him for his endorsement.

"This endorsement comes on the heels of the million men/women march
which visibly and successfully showed that President Mugabe enjoys the total
support of the people of Zimbabwe," read the advertisement. "We affirm our
support for your candidacy and pledge total mobilisation of the people to
turn out in their numbers in the March 2008 elections to ensure your and
Zanu PF’s resounding victory."

Zanu PF divisions over Sibanda were clearly manifested in the party’s
politburo meeting on October 24 when the issue was discussed at length.

The Zimbabwe Independent — which was discussed at the politburo
meeting on September 5 because of exclusive stories it is getting from Zanu
PF meetings — at the time reported on politburo clashes over Sibanda.

More evidence on this was provided to the paper this week showing the
divisions were more serious than initially thought. At the October 24
politburo meeting, Mutasa introduced the Sibanda issue, saying there were
questions regarding campaigns and "procedural correctness" of the war
veterans.

Mugabe quickly came in and said Sibanda was leading the war veterans
across the country to demonstrate their solidarity with him. He said he had
addressed one of their gatherings. Mugabe said Sibanda was however linked to
various party activities in Bulawayo, but he was not sure about the status
of his case as the war veterans leader claimed to have appealed against the
recommendation to expel him from the party.

Msika told the same politburo meeting that the Sibanda issue was "very
delicate and disturbing". He said he preferred it should not be discussed.
Msika also said he was not aware of Sibanda’s appeal against expulsion and
as a result he stood expelled. He said Sibanda was "causing a lot of
confusion" in Bulawayo and splashing money like confetti. Politburo member
Solomon Mujuru said Sibanda was being funded by government to wreak
political havoc.

Dabengwa, Mujuru, Thenjiwe Lesabe, Angeline Masuku and Sikhanyiso
Ndlovu also condemned Sibanda’s activities, while Vitalis Zvinavashe and
Naison Ndlovu supported him.


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Disastrous start to cash roll-out

Zim Independent

Jesilyn Dendere/ Bernard Mpofu

THE Reserve Bank’s project to introduce higher denominated bearer
cheques yesterday got off to a disastrous start after the bank failed to
deliver cash to financial institutions.

Thousands of people were unable to get cash amid revelations that the
central bank only started distributing the new bearer cheques to banks well
after normal banking hours.

By last night officials from banks were still at the central bank’s
cash office trying to get their allocations.

"We only started getting cash at about 4pm," said a managing director
with a local commercial bank.

The central bank introduced $250 000, $500 000 and $750 000 bearer
cheques and demonetised the $200 000 note claiming it was being hoarded by
cash barons. Some banks were yesterday still issuing the $200 000 bearer
cheques which go out of circulation at the beginning of next year. Long
queues were still evident yesterday with most banks turning away clients who
wanted to withdraw cash.

At ZB Bank along Rotten Row, people were being admitted into the hall
in small numbers to avoid commotion to withdraw old notes.

A source at the RBZ said the new bearer notes were being dispatched to
the rural areas first before being distributed to urban branches.

The crisis continued yesterday as pressure mounted on central bank
governor Gideon Gono to name the barons who he has accused of hoarding cash.

Gono on Wednesday said the bank was aware of people holding on to cash
for speculation.

He offered to name and shame the barons, whom he said included
high-ranking officials, to parliament.

Gono said he felt let down by senior politicians who were hoarding
large sums of cash.

Stakeholders have called on the Finance and Budget Parliamentary
Portfolio Committee to immediately convene and invite the governor to name
names. Last night Gono told the Independent that the central bank had
already started pursuing the barons.

"It’s part of the strategy to deal with the barons and so far it’s
working," Gono said.

He said the bank had sent a team to Masvingo to investigate some
barons who had moved $2 trillion from Marondera on Wednesday night. On the
cash crisis, Gono said the situation would improve by today because there
were "some issues that had to be sorted out".

"It will not take a day. Our people have to be patient," he said.

The Arthur Mutambara-led MDC faction yesterday called on the
chairperson of the Parliamentary Committee on Finance and Budget David Butau
to immediately convene the committee and summon Gono to name the cash
barons.

"The MDC parliamentary caucus strongly believes that this is a serious
matter which needs urgent attention given the magnitude of the national cash
crisis and therefore calls on the Parliamentary Committee to expeditiously
deal with this matter in the interest of the nation," MDC parliamentary
spokesperson Priscilla Misihairabwi-Mushonga said.


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Consultation with Hussein was privileged - Charamba

Zim Independent

Lucia Makamure

THE Secretary for Information and Publicity, George Charamba, this
week filed a notice of opposition in the Supreme Court maintaining that
prominent Harare lawyer Terrence Hussein is guilty of unethical conduct for
representing a client challenging the Broadcasting Services Act (BSA) which
he allegedly helped to craft.

Hussein is representing Ndabenhle Mabhena who is challenging the
constitutionality of some sections of the BSA.

In the court papers, Charamba said he could not produce confidential
information he gave to Hussein during the crafting of the Act as that would
result in the information becoming public.

"Confidential information should be treated as such or else the term
will lose its meaning if such information becomes public," Charamba said in
his supporting affidavit. "Consultations with Mr Hussein were intimate and
extensive. They made Hussein come in contact with the soul and thinking of
government on the policy issue."

Charamba said he had no objection if another lawyer was assigned to
the case instead of Hussein.

"Information and thinking behind any policy and law is treated as
privileged and therefore confidential. The point is that the respondent’s
lawyer had access to confidential information through the transaction that
the ministry had with him and for that reason he cannot exploit it against
us. We have no objection to some other lawyer handling the matter,"
explained Charamba.

Last month, former Information and Publicity minister Jonathan Moyo
lodged an affidavit with the same court in which he claimed that Hussein did
not receive any "protected or confidential" information from his office at
the time.

"At no time during the same period did Mr Hussein receive in writing
or otherwise from me or from anyone else in my office any protected or
confidential information or official secret," Moyo said in the court papers

Charamba said contrary to Moyo’s claims he was responsible for the
crafting of the BSA.

"As regards Professor Moyo’s affidavit, I submit that I maintain what
I stated in my main affidavit and I have no reason to lie. Furthermore, I
wish to state that I together with my junior then, Betty Dimbi, we were
responsible for researching and drafting the broad principles which guided
the drafting of the Broadcasting Services Act. I was responsible for
extrapolating from various broadcasting laws of different jurisdictions the
principles which underpin the current law." said Charamba.

Charamba said that work on the broadcasting law started in 1997.

"In fact work of this area started way back in 1997 whilst I was at
Cardiff University at which I specialised in Broadcasting Media Studies
among other areas.

"Contrary to Moyo’s claim, I was closely associated with the whole
drafting process including holding consultative meetings with the Cabinet
Committee on Legislation."

The Supreme Court is yet to make a ruling on Charamba’s application to
have Hussein recuse himself from the case between the government and
Mabhena.


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Shortages cripple prisons

Zim Independent

Constantine Chimakure

ZIMBABWE’S 65 prisons have been hit by a critical shortage of food
that has culminated in some inmates suffering from malnutrition and a
medical condition called pellagra, among a plethora of other problems facing
the country’s penal system due to inadequate funding.

In a damning report on the funding of the Zimbabwe Prison Service
(ZPS) to parliament, the Justice ministry said it was battling to feed and
buy uniforms for over 25 000 inmates throughout the country.

The country has 43 prisons and 22 satellite jails.

The ZPS said it was allocated slightly above $149 trillion in the 2008
budget against its request for $286 trillion — 52% of what it bid for.

As a result, the ministry said prisons would not be able to adequately
pay for goods and services, military procurement, maintenance of equipment
and buildings; staff transfers and programmes, acquisition of fixed capital
and funding of Sadc prisons games next year.

The ministry said under the goods and services subhead, the ZPS had
requested $64,8 trillion and was allocated $63,8 trillion and this would
impact drastically on the well being of both prisoners and officers.

"This item is the most problematic as it takes care of the basics such
as food, clothing, medication, bedding and toiletries," read the report.
"From our bids against the allocation it shows that we have a deficit of $10
432 845 600 000 and this will impact negatively on the procurement of
rations for prisoners."

The ministry said the ZPS this year struggled to feed inmates
resulting in malnutrition in prisons.

"During the 2007 fiscal year we have been struggling to provide
prisoners with barest food items, that is sadza and cabbage (soup of
cabbage) without cooking oil. The unbalanced diet has led to malnutrition
and to a medical condition called pellagra," the report read. "Malnutrition
put a strain on the (prisons’ department of) medical supplies and services,
which is also under- funded."

Pellagra is avitamin deficiency disease caused by dietary lack of
niacin (vitamin B3) and protein.

The ministry said rations took the bulk of the allocation of the ZPS’
institutional provisions since the prices of basic commodities were always
on the upward trend leaving very little for other essential such as medical
supplies, clothing, bedding and toiletries.

The ministry said uniforms for both inmates and officers have never
been adequate for a long time now.

Most prison officers, the ministry added, have not received a full
complement of their uniforms for the past five years and the uniforms they
have were totally worn out.

Those who have been recruited during the same period have not received
trench coats, jerseys, barathea suits and caps.

"Some of the uniforms such as the barathea suits, caps and
accountrements require foreign currency to be procured," the report read.
"As for inmates the situation is even worse since inmates exchange the same
clothes when they go for courts or to gangs thereby exposed to infectious
diseases."

The report said there was also shortage of blankets in the prisons.

"Blankets purchased for the past years have not been enough to cater
for even one prison complex…The few blankets that may be available will
force many inmates to share a blanket, which may result in nefarious
activities taking place," the report added.

It said the lack of tissue paper in prisons had resulted in the
blockages of drainage system and sewerage pipes as inmates resort to using
pieces of torn blankets.

"Paying for utilities will remain a mammoth task given the hikes in
water, electricity, rates, and other service charges. Water and electricity
cuts will remain the order of the day during 2008 fiscal year," the ministry
said.


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Mugabe suspends new land offers

Zim Independent

Augustine Mukaro

PRESIDENT Robert Mugabe has ordered Lands minister Didymus Mutasa to
suspend the issuance of new land offer letters until contested land
acquisition cases are concluded.

According to a report of a meeting on December 4 between Mutasa and
Zanu PF Mashonaland West provincial leadership, Mutasa said Mugabe
instructed him to stop the issuance of offer letters and not invalidate
those he had already signed.

The meeting was called to discuss grievances concerning the continued
farm acquisitions in the province and was attended by Zanu PF secretary for
information and publicity Nathan Shamuyarira, politburo member Webster Shamu
and President of the Senate Edna Madzongwe, among others.

"His Excellency, President Mugabe had only instructed him (Mutasa) to
stop the signing of new offer letters and not to invalidate old offer
letters," read the report.

The continued issuance of offer letters had created confusion in the
farming community with white farmers defying eviction notices and contesting
them in courts, delaying the processing of the cases.

There are more than 5 700 land acquisition court challenges throughout
the country still to be finalised.

The confusion had also sparked friction between Vice-President Joseph
Msika and Mutasa.

Msika was against the continued invasion of productive white-owned
commercial farms while Mutasa wanted a further removal of the remaining
farmers.

The Zanu PF Mashonaland West provincial leadership last month
recommended the nullification of Mutasa’s recent offer letters and eviction
of all new beneficiaries allocated farms unprocedurally because they were
disrupting production.

It also recommended that over 70 white farmers remaining in the
province should be allowed to continue farming since they had good working
relations with the local communities.

However, Mutasa is said to have told the meeting that state organs
vetted the white farmers.

"The vetting of white farmers to remain on land was done by relevant
authorities and Ministry of lands in consultation with local leadership and
that a consolidated list was then used to consider which white farmers to
remain," the report read. "He (Mutasa) showed the meeting signatures of
those who had recommended these offer letters." They were Mashonaland West
chief lands officer Farukai Chikomba, provincial war veterans chairman
Mashava Mugwagwa, Zanu PF provincial chairman John Mafa, and Governor Nelson
Samkange."

Mutasa’s vetting exercise ruled that only six farmers should remain on
land, while the provincial leadership had recommended 73. Shamuyarira had
told the meeting that as provincial leaders and politburo members they were
not being consulted when land allocations were being implemented, hence
their decision to approach Msika to address the anomaly.

"He (Shamuyarira) disclosed that as a province they are not there to
derail the land reform, but to further enhance it through an all-inclusive
systems that recognise the inputs of those at provincial level," the report
read.

Shamuyarira conceded that as a province they had carried out their own
vetting exercise of white farmers to remain on the land outside the mandate
of Mutasa’s ministry.

He said it was their belief that they were assisting Mutasa’s ministry
and not derailing the land reform.

Turning to the acquisition of Rydings Farm, upon which a private
primary school was built, acquired by the government and allocated to Mutasa’s
personal lawyer Gerald Mlotshwa, the Lands minister said everything was done
above board.

"Furthermore it was revealed during the meeting that Rydings Farm was
a haven of hostile displaced anti-Zimbabwe political elements of the white
community and that its allocation to Mlotshwa was not a unilateral act by
minister Mutasa, but was done after thorough consultation with the same
provincial leadership which has gone to town condemning it," the report
added.

The acquisition of the farm affected almost 200 pupils, but the school’s
board of trustees applied for an urgent relief order from the High Court
barring Mlotshwa from interfering with the school’s operations.

At the end of the meeting, there was agreement that offer letters
issued by Mutasa were the only legal documents that authenticated land
ownership and should be respected.


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Farmers fail to access inputs

Zim Independent

Augustine Mukaro

THE 2007/8 agricultural season publicised as "the mother of all
agricultural seasons" could turn out to be the worst season ever as farmers
fail to access the necessary inputs on time for planting, experts have
warned.

Reports coming from most provinces show that farmers have been forced
to plant an estimated 40% of the area normally put under crops because of
the shortages of seed, fertiliser, draught power and equipment, threatening
prospects of a bumper harvest next year before it even starts.

Despite the best spell of wet weather since the cyclones of 2000, the
mechanisation programme equipment is still stored at a number of government
premises while farmers fail to till the land. In Chiredzi hundreds of
ploughs lie idle in the rural council yard.

Fertiliser and seed companies said they had no capacity to satisfy the
national requirement due to lack of foreign currency and unrealistic prices.
There is also a critical shortage of pesticides and other chemicals.

Zanu PF central committee report presented at the party’s
extraordinary congress last week exposed vast differences between what the
farmers require to produce enough food and the resources made available by
government.

The report said local seed houses made available around 28 450 tonnes
of seed. This is enough to cover 1,2 million hectares compared to the
targeted 3,2 million hectares of land. The quantity account for only a third
of what the country requires.

Government said it was going to address the shortfall through
importing the seed from Zambia, Botswana and South Africa.

To date a mere 794 tonnes of seed have been imported from Zambia, the
report said.

The report noted that serious shortages were in the fertiliser section
with local producers not in a position to fully exploit their capacity due
to unviable prices, shortages of phosphates, foreign currency, coal and
power.

"The fertiliser industry are prepared to produce 53 950 tonnes of
Compound D between October and December and 46 714 tonnes of Ammonium
Nitrate (AN) between September and February 2008 subject to immediate
availability of foreign currency amounting to US$12 million for spare parts
and raw materials, an improvement in electricity supplies and a reviewed
price," the central committee report said.

The country requires 720 000 tonnes of compound and 774 000 of AN each
season.

The report said government would bridge the gap through imports of
fertiliser from China and South Africa.

Government has issued permits to the Reserve Bank of Zimbabwe to
engage Insthona for the immediate importation of 50 000 tonnes of urea and
41 000 tonnes of compound D.

Insthona is the company which brought substandard fertiliser into the
country resulting in the firing of the then Agriculture secretary Simon
Pazvakavambwa.

Last year Intshona supplied about 800 tonnes of the substandard
fertiliser, prejudicing the country of up to US$300 000.

The report said the supply of fuel, coal and electricity remained
critical.

However, farming experts said the situation on the ground throws into
disarray all government prospects of a quick fix to the free falling
agricultural sector and the economy at large.

Experts say government efforts to boost production would not yield any
positive results under the current legislative set-up and the continued farm
invasions, which have created uncertainty for investors to embark on
business expansions.

"The situation continues to be untenable unless farm-grabbing and
farming implements seizures by top government officials at the expense of
ordinary farmers, power blackouts and unavailability of inputs are
addressed," one expert said. "Nationally agricultural output has predictably
declined further relegating government efforts to a national joke."

He said the major constraint to increased productivity was the
uncertainty of tenure in the agricultural sector where farmers are evicted
on a daily basis.

Continued acquisition notices, disruptions, acts of violence on farms
and lack of land-based collateral were some of the problems farmers face."

The chaotic land reform programme, which from inception has been
condemned by international donors as unworkable and a recipe for disaster,
has turned out to be just that. Over the past six seasons production in all
facets of agriculture has plummeted, dragging the economy down with it.

Farmers have estimated production to have fallen by 70%, resulting in
the country surviving on food handouts and grain imports to bridge food
deficits.

Experts said farming activities require proper financing, planning and
expertise which have been conspicuously absent since the inception of the
land reform programme seven years ago.

Analysts attributed the continued slide of production to inherent
policy contradictions from government officials as causing confusion on the
ground. The confusion has sparked serious row between the Ministry of Lands
and provincial leadership.

The ministry continues to issue offer letters while the provinces
sought to boost production with the remaining white farmers not being
disrupted. From the inception of the fast-track land reform white commercial
farmers clinging on to the land were considered to be the primary obstacles
to the success of the exercise.


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Army says can try coup suspect

Zim Independent

Lucia Makamure

AN army jury has ruled that it has the jurisdiction to court martial
Albert Matapo, who is at the centre of an alleged foiled military coup
against President Robert Mugabe, on charges that he deserted from the army.

Judge Advocate Captain Anderson assisted by Lieutenant Colonel
Mkwananzi, Major Badza, Major Moyoweshumba, Major Mutembo and Major Kurambwi
a fortnight ago said the court martial should proceed once the prosecution
produces evidence that Matapo ran away from the army.

Matapo is facing treason charges with five other men accused of
plotting a coup against President Robert Mugabe’s government and has been in
police custody since May.

The ruling came barely a few days after Matapo’s lawyers, Warara &
Associates, filed an application in the High Court to stop the army from
proceeding with the court martial, arguing that their client did not
complete military training.

The lawyers also wanted the army to provide documentation to
substantiate their claim against Matapo.

A court martial is a military court that deals with disciplinary and
misconduct cases by soldiers and is presided over by a Judge Advocate, who
by law should be a member of the force.

Charles Warara of Warara & Associates told the Zimbabwe Independent
last week that army prosecutor Major Gumbura was last Friday not sure
whether he would provide the required documents when the case commences on
January 28.

"The court made it clear that the case can only proceed if the army
provides documents on Matapo’s alleged desertion, but Gumbura told the court
he was not sure he was going to find the documents," Warara said.

The documents needed include a roll call from the Zimbabwe School of
Infantry, a report of the officer who first reported of Matapo’s absence
from his base and copies of the last pay advice issued by the Zimbabwe
National Army to the accused.

The court also wants an affidavit by an officer who made follow-ups on
Matapo at his given address within 90 days after he deserted.

"What puzzles me is the fact that it took the army 16 years to track
my client when he was employed by the government for a considerable time,
said Warara. "Matapo worked for the government under the Ministry of
Education as a teacher and later worked for the Public Service and all that
time the army failed to charge him for desertion," added Warara.

Matapo’s lawyer said since his client did not complete army training,
the question before the courts would be the constitutionality of bringing a
recruit before a court martial.

"My client did not finish basic military training and failed the cadet
training course and we now want to know if he as a recruit can be trialled
before a court martial on desertion charges, said Warara.


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Kenyan election aspirants in land grab

Zim Independent

TWO Kenyan rights groups urged voters on Wednesday to scrutinise
candidates running in this month’s national election, saying some contenders
were guilty of land grabbing.

Protected areas and land belonging to state-owned companies worth some
34,5 billion shillings (US$550,7 million) were illegally given away since
around 1961, according to a report by the Kenya National Commission on Human
Rights (KNCHR) and the Kenya Land Alliance.

Some 15 parliamentary aspirants were named in the report as having
acquired land illicitly.

"Ours is basically to ask that we vote wisely," Odenda Lumumba of the
Kenya Land Alliance told a news conference.

"Even if they are elected, we still have a battle to ensure that they
are not again appointed as ministers, because one of them could easily land
at the Ministry of Lands."

A 2004 report commissioned by President Mwai Kibaki found that top
politicians, including Kenya’s first two presidents, grabbed huge tracts of
public land for political patronage and recommended that they be tried and
the land returned.

Among the political figures cited in Wednesday’s report were Defence
minister Njenga Karume and a firm belonging to the family of opposition
presidential candidate Raila Odinga.

The company is said to have bought land for a molasses plant at about
a tenth of its value, paying 33,000 shillings per acre.

Karume, a close Kibaki ally, is said to have acquired 1 000 acres of
land at about 2 600 shillings an acre, then sold it back to the government
at about 186 000 shillings per acre.

"We have a problem if our political class cannot even acknowledge that
they got things illegally, irregularly," KNCHR chairman Maina Kiai said.

"The best way to move forward is for them to come forward and say: ‘We
are sorry, we regret it, we’ll pay the market value, then we can begin the
process of reconciliation."

Odinga and Karume were not immediately available for comment.

On December 27, Kenyans vote in what is likely to be the east African
country’s tightest contest in 44 years of independence.

Many say the closeness of the race shows how democracy has advanced
since independence from Britain in 1963, but others worry that it heightens
the potential for fraud and violence in a campaign marred by chaos and vote
buying allegations.

One man was killed and four cars torched in election violence in
different parts of western Kenya, newspapers say. — Reuters.


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Media must input in Aippa changes

Zim Independent

This is a letter sent to parliament by the Zimbabwe Union of
Journalists in response to the passage of the Access to Information and
Protection of Privacy Act (Aippa) Amendment Bill this week.

Dear Honourable members

WE acknowledge and welcome the fact that Zanu PF and the Movement for
Democratic Change have at last seen the need to engage and seriously
dialogue on issues affecting our country.

We are encouraged that the two parties have found time to sit down and
look at contentious laws that have a detrimental effect to our democratic
aspirations and general development of Zimbabwe.

As a professional and trade union body representing 98% of practising
journalists in Zimbabwe, we are also encouraged to realise that both sides
of Parliament have now publicly acknowledged the flaws in Aippa and have
closely looked at the law and made recommendations for amendments.

We however, are extremely disturbed by the fact that none of the
negotiators saw it fit to consult stakeholders in order to come up with
amendments that are owned rather than imposed on the media industry. We
realise that some of the information which the negotiators were given in
respect to the situation in the industry was certainly coloured to meet
certain ends.

We are encouraged that the period for newspaper licence renewal may
move from two to five years but still we don’t see any reason why we should
keep on our statutes a section of law that will hold the industry and
investors at ransom. We urge that once a licence is granted, it must stay as
it is for investors in other sectors of the economy.

We have also looked at the proposal to establish another statutory
media regulatory body and we want to appeal to the parties involved to have
a serious reconsideration of this. Statutory regulation of the media has
never worked in any democratic society.

Statutory regulation of the media is actually anti-democratic. In fact
in Africa, south of the Sahara, Zimbabwe is the only country moving in this
direction. Uganda has for the past 10 or so years tried to insist with
statutory regulation but their story has been one of dismal failure.

No one, including the Ugandan government has any confidence in the
project. For seven years, the Uganda Media Council received just three
complaints from the public. Compare that with the successful self regulatory
Media Council of Tanzania which is the envy of the world. It receives at
least 24 complaints every month. Very senior government ministers including
the Prime Minister have used the Tanzanian Media Council to complain against
the media.

Today, media houses in Uganda have launched their own self-regulatory
body.

We also wish to remind honourable members of Parliament that Zimbabwe
has subscribed to a number of international conventions that are against
statutory regulation of the media. It is important to note that Zimbabwe is
one of the countries that founded the famous 1991 Windhoek Declaration which
among other things upholds media diversity, pluralism and independence.
Media independence is not possible if government regulates the media through
statutes.

We also note the Banjul Declaration of 2002 of Principles on Freedom
of Expression in Africa of the African commission on Human and People’s
Rights which states that "effective self regulation is the best system of
promoting high standards in the media".

May I also remind you that the media, out of its own volition and
consistent with the spirit of the principles that Zimbabwe subscribe to,
undertook a three-year project to establish the Media Council of Zimbabwe.
Contrary to sentiments from certain sections, the self-regulatory body was
established after wide consultations that involved every single newsroom in
the country, every single media house, every single editor, the civil
society, the Parliamentary Portfolio Committee on Transport and
Communication, the Ministry of Information and Publicity, representatives of
different political parties to include the MDC and Zanu (PF) in every
province, the Zimbabwe National Editors’ Forum which represents private
media editors, the Zimbabwe Association of Editors, which represents all
state media editors.

All these parties endorsed the idea of a self-regulatory body. We have
correspondences to this effect from the Parliamentary Portfolio Committee
which we engaged on numerous occasions and indeed afforded them an
opportunity to
share the Tanzanian experience with an expert from that country. The
Ministry of Information and publicity was the first to be approached at the
time of the late Dr Tichaona Jokonya and we worked with them on the project
until the time of its launch.

A constitution of the Media Council of Zimbabwe was drafted and
endorsed by virtually all parties and the Parliamentary Committee and the
Ministry of Information had inputs into this. A code of conduct is in place
and this was also endorsed by all journalists and stakeholders. Elections
were held and a board put in place and the secretariat with an executive
secretary will be in place before the end of the year.

There has therefore been massive work to this project and it is a
tragedy for a new project to be formulated without benefiting from the
experiences of the other. The inclusion of the media council in the
amendments is an acknowledgement of our efforts to establish a media council
in the country.

It is also important to note that media councils throughout the world
are based on consensus building, understanding and respect. An imposed
regulatory body in the
media will find itself shunned and alone.

We therefore kindly ask for Parliament to afford the industry to make
an input into the amendments before it. Otherwise we will have to go back
again to the drawing board.

The spirit in these negotiations has been that the ruling party and
the opposition have found each other; we urge that this extends to finding
the people as well.

Thank you.

Matthew Takaona,

ZUJ President.


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I'm shocked by Gono - Hativagone

Zim Independent

Bernard Mpofu

ZIMBABWE National Chamber of Commerce President Marah Hativagone
yesterday accused the Reserve Bank of playing a blame game on the current
cash crisis.

Reacting to remarks by central bank boss Gideon Gono on Wednesday that
the business sector was part of a syndicate involved in illicit cash deals,
Hativagone said the "blame game" was "counter-productive".

Announcing a new family of bearer cheques — $250 000, $500 000 and
$750 000 — Gono said the cash crisis was a result of cash deals by the
business sector and cash barons, among them senior government officials and
politicians.

Gono said out of $67 trillion the central bank had injected into the
market, only $2 trillion could be accounted for.

In a live broadcast on the introduction of the new bearer cheques,
Gono blamed business for illegal monetary activities in what seemed to be an
apparent reaction to Hativagone, who earlier on Wednesday said the cash
crisis was affecting the business sector.

"This morning I saw a businesswoman on TV complaining and almost in
tears (about the cash shortages),"said Gono. "How can you remove the speck
in one’s eye when there’s a log in your own."

But Hativagone yesterday said she was surprised that her morning
interview on ZBC TV’s Business Today programme had sparked a row with the
central bank chief.

"I am shocked. I was not crying at all but advocating for my
constituency whom for the past two weeks was criticising me for not making a
public statement regarding the cash shortages," she said.

Turning to the introduction of the new family of bearer cheques,
Hativagone described it as a welcome development, but said it was a shift
from what Gono had earlier told the country.

She said the business sector had expected Gono to come up with a new
currency as he suggested last month.


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Agonising year for business

Zim Independent

Kuda Chikwanda

EVERY manager had a terrible 2007 but none could have been so stressed
as the one who ran National Foods, one of Zimbabwe’s biggest food
processors. It was probably one of the most agonising years for Natfoods
which had to struggle with price controls on virtually every product it
produces. The government made sure that everything that National Foods
produces, from salt to stock feeds, was controlled. As the year closes
Natfoods’s management can at least heave a sigh of relief for having managed
to keep the company open during the trying times.

The listed company was almost crippled during the disastrous July
price blitz as the vast majority of its commodities are controlled products.
Even though government later backtracked, the damage had been done and
Natfoods was left counting its losses.

When another listed giant Innscor Africa took over about 50% equity in
the conglomerate, it was widely agreed that Natfoods had to change the
structure it adopted in 2003 to survive.

The second major restructuring in four years took place as the company
sought to rationalise its structure, decentralise and make it a leaner and
more efficient entity.

The exercise lasted 90 days and saw the company devolve from six units
into 10 Strategic Business Units (SBUs).

These new units will each have their own board of directors. They will
be allowed to operate their own books of accounts as opposed to the 2003
structure in which decision-making and finances were centralised.

"The goal was to increase efficiency, unlock value and ultimately
turnaround the company," Natfoods spokesman, Golden Chekenyere said.

"We aimed to create more focus and empower the leaders appointed, and
also give them autonomy to run the SBUs and have them totally committed to
their SBUs. They will have the freedom to run those units, their own bank
accounts and cheque books."

Innscor assumed management control from South African food giant Tiger
Brands, which became the second largest shareholder after Innscor with
26,08%.

The new divisions are Oil and Malt, Stockfeeds, Milling, Natpack,
Retail, Pre-packs, Natfoods Distributors, Retail, Properties, Transport and
the Botswana Milling.

"We took that decision on September 6 and gave ourselves three months
to turnaround the company and I think we will sing a different tune, that of
success in 2008," Chekenyere said. Natfoods is not the only company that
struggled this year.

Beneath Chekenyere’s optimism one can still detect uncertainty.

This is the same uncertainty gripping all industrialists in Zimbabwe.

The year 2007 has been extremely challenging for the business
community. Zimbabwe National Chamber of Commerce (ZNCC) president Marah
Hativagone said: "2007 is definitely a year we would all love to forget".

Since the start of the year, inflation maintained its upward spiral
starting off the year at just over a 1 000% and with the last known figures
recorded at 14 840%.

Compounding the problem has been the Central Statistical Office (CSO)
which has been under orders to sit on inflation figures for most of the
year. CSO only managed to announce inflation for six months in 2007.

Financial planning and reporting thus became a challenge in Zimbabwe’s
hyper-inflationary environment without inflation figures. Banking
institutions appealed to the Reserve Bank of Zimbabwe (RBZ), which released
inflation figures in April after a two-month embargo.

Hardly two months later as dwindling energy supplies further crippled
the struggling economy, government came up with the infamous directive that
forced all companies to revert to prices prevailing as of June 18.

Shops failed to re-stock as the business community could not buy at a
higher price from suppliers to sell to consumers at below cost.

Food and commodity shortages set and several companies shut their
doors to the public. Large retail companies like OK Zimbabwe and TM incurred
huge losses while their executives were arrested for overcharging. Some are
still facing trial.

In just two weeks, OK lost about $38 billion while TM lost between $35
billion and $40 billion.

Natfoods lost $18 billion on salt it imported from Botswana — charges
which the company strenuously denied despite admitting that they had indeed
incurred serious losses on many of its product lines.

National Tyre Services (NTS) suspended a lucrative contract to supply
tyres for another listed entity, Delta. Markro Mega Centre was hit hard when
police officers forced it to reduce its prices to ridiculous levels.

Bakers were forced to incur losses of between $15 000 and $20 000 a
loaf while Schweppes said they had made massive losses since the government
June 18 decree.

Bigger companies announced that they were "restructuring" but a closer
look showed that they were actually down-sizing. Smaller companies simply
went bankrupt.

Companies were forced to embark on strategies to ensure their
survival. Some of these strategies have been nothing short of just beating
authorities at their own game.

The importation of luxury goods has been one of the ways that have
helped businesses survive. Imported goods are not subject to price laws.

Expensive commodities have now flooded shops and because of the
rapidly depreciating Zimbabwean dollar, these commodities have been
considerably more expensive than locally manufactured ones.

This has prompted threats of a new price blitz and heightened
uncertainty in the business sector.

Efforts by the Reserve Bank of Zimbabwe (RBZ) to intervene and salvage
something out of the crisis have largely been unhelpful.

The central bank introduced the Basic Commodities Supply-Side
Intervention (Bacossi) facility in September to offer cheap funding to
affected business and allow them to return to full productivity.

However, much of the money accessed under Bacossi has found its way
onto the stock market where it has fed a bull run. This is because the
Zimbabwe Stock Exchange (ZSE) has been offering good returns above inflation
in the wake of the RBZ’s refusal to offer better interest rates.

"Much of that money has not found its way to Small and Medium
enterprises. So while some companies have accessed it, not all companies
along the production chain managed to get it, and that explains why some
companies are not producing," Hativagone said.

Over $10 trillion was injected in Bacossi together with US$13,2
million.

But one thing remains certain — without concrete measures to right the
situation, companies are set to endure another agonising year in 2008, while
Natfoods may be forced, yet again, to embark on another restructuring
exercise.

Businesses will need to find new strategies for next year. Its
promising to be no better than 2007.


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RBZ investigates NGOs

Zim Independent

Kuda Chikwanda

THE Reserve Bank of Zimbabwe (RBZ) is planning to launch an
investigation into Foreign Currency Accounts (FCAs) belonging to
Non-Governmental Organisations (NGOs) in its bid to hunt down those who
traded on the parallel market.

The investigation will start early January when the central bank
interviews the non-governmental organisations.

Sources told businessdigest that the NGOs will be called to the
central bank for "routine" interviews to explain how they liquidated their
foreign currency earnings.

The NGOs have since been informed by the central bank to prepare
supporting documentation detailing how they liquidated their foreign
currency during the year.

"We were told that we would attend interviews to explain and verify
our foreign currency liquidation. The interviews are in January," said a
senior official with one NGO.

"We saw it coming. At my organisation we are covered, most of us have
our receipts. We warned a number of other NGOs to be prepared, if they are
caught off-guard then is will be unfortunate," the official said.

The move has sparked a rush by affected NGO employees who have made a
beeline for Botswana, South Africa, Zambia and Mozambique to return with
receipts to give to the central bank as supporting documents to justify
their liquidations. Businessdigest spoke to employees at a Harare-based NGO
who were preparing to make a visit to Botswana to get receipts and cover
their trails.

"I am going to Botswana to get those receipts. If I don’t I will be
charged with dealing on the parallel market," said one of the employees.

National Association of Non-Governmental Organisations (Nango) chief
executive officer, Cephas Zinhumwe, said he was not aware of the
developments.

"I will comment when the issues are out, when they are indeed called
to the interviews," Zinhumwe said.

RBZ governor, Gideon Gono, was not available for a comment as he was
said to be in meeting over the cash issue. The central bank believes that
some NGOs could be the source of the foreign currency that is being traded
on the parallel market.


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Customer no longer 'king'

Zim Independent

Bernard Mpofu/Jesilyn Dendere

DID anyone ever imagine being asked to bring a coat hanger to the dry
cleaner’s shop or container to the grocery shop for milk or cooking oil
purchases? It’s happening here and a lot of other things too.

Expecting mothers should bring their own water for sanitary purposes
in buckets when they go to give birth at rural health centres. That is not
all. Patients at public hospitals are being asked to bring drips, surgical
gloves, dressing and syringes.

Coupled with this egregiousness, many service providers have now
permanently forgotten the courtesy of saying thanks to clients or
apologising for delays. The customer is no longer king. It is the simple
shopkeeper, petrol attendant or security guard who has become a god.

There is correlation between the deterioration in service delivery and
the current decay in this economy. In an environment of shortages, those
providing a service or selling goods which are scarce have developed a
measure of arrogance that has resonated in all sectors of the economy.

We have witnessed waiters harassing diners complaining about bad food
or delays in service. It’s take it or leave it, or worse still, get out of
here! Customers are now expected to be grateful to shop attendants or a
security guard who wield the power to ensuring food on one’s table or
inflicting the pain of a breadless breakfast. It’s the client who now has to
bow, curtsy, smile and say thank you to the shopkeeper.

For an ordinary Zimbabwean, 2007 will go down as the year that saw a
relentless erosion of basic customer service delivery in virtually all
business sectors.

Tales of meanness, shortchanging customers and the unfriendly attitude
from shop assistants have not only become a reflection of the country’s
ailing economy in its eighth year of crisis but also a seemingly popular
culture that has relegated shoppers to mere beggars.

There was no explanation or apology when supermarkets withdrew
complimentary plastic carrier bags from supermarkets. Not to be outdone,
hoteliers have joined the trail, with latest observation showing that most
of them are charging accommodation and breakfast separately ahead of the
Christmas holidays.

"We have resolved to this new pricing model as a way of matching our
rates with the prevailing economic environment," said an employee with a
city hotel. "As you know, our pricing system has been curtailed by
authorities and this makes it increasingly difficult for us to offer these
additional services at no cost."

"Zimbabwe Tourism Authority should shift from its marketing strategy
characterised by a plethora of events that are marked with pomp and fanfare
and evaluate critical issues of service delivery offered by its members",
said one tourism player.

"Frequent power cuts are adversely reflecting an unreceptive ambience
at most hotels and lodges in Masvingo and Manicaland and if this goes
uncorrected we will suffer. No tourist would want to part with money for a
blacked-out hotel that has no television or air conditioner," he said.

Fast food outlets have also become part of service delivery
short-changers. The month of November saw several pizza outlets changing
their packaging to unattractive polythene bags from traditional packaging
boxes. Opaque beer drinkers have not been spared from this culture of
disservice as seen by most beer outlets around the country requesting
patrons to bring empty containers in different forms and shapes.

Despite hygienic shortcomings posed by these operational changes,
consumer watch groups are merely calling for consumers to "report such
anomalies".

Providers of key amenities, especially quasi-government organisations
including power utility Zimbabwe Electricity Supply Authority has become so
desperate that it asks residents to raise money to buy spare parts and
components for broken down equipment.

"Recently we were asked to contribute a $1 million towards purchasing
a fuse and transformer oil when an electrical fault developed on our power
grid," said Brighton Kwanisai of Chizhanje area in Mabvuku.

On the other hand the lethargic culture of the police has reportedly
seen police acting swiftly to emergency cases only when guaranteed of smooth
logistical plans by those reporting the cases. This lack of swiftness has
also brought horrific experiences that have become typical of the appalling
conditions that continue to deteriorate unabated.

"It was so traumatising to share a house with a decomposing body that
had been left for days because police did not have transport to carry the
body to the nearest mortuary. Well-wishers had to assist in carrying the
corpse and washing powder was used to get rid of the pungent smell", said a
resident of Makomo area in Epworth.

Walking into an up-market apparel shop a notice that reads: "We regret
that from October 8 we are no longer able to offer credit" welcomes you.
Interestingly, glued next to this notice is another that seems reminiscent
of the June price blitz. "No bulk purchases permitted," it reads.

This has become the trend with most clothing stores that are
traditionally known for their credit facilities. For them, suspending this
universally applied way of selling is only a ripple effect of the prolonged
cash crunch and inflationary pressures. Sadly for would-be buyers, the
festive holidays will not be filled with customary merriness, as they will
have to fork out several millions of dollars in cash to buy clothing
outfits. It costs more than $55 million to purchase a formal shirt while
ladies outfits cost around $40 million.

Responding to written questions relating to deteriorating standards,
an official from the Consumer Council of Zimbabwe said the consumer watch
group’s activities were geared towards monitoring retailers and bankers.

"CCZ officer Tawanda Danda said that the "free fall" on service
delivery stemmed from the lack of human resources resulting from massive job
cuts, poor business ethics and "profiteering".

Efforts to get comment from Retailers Association of Zimbabwe
president, Willard Zireva were fruitless.

Meanwhile, a leading chain store has suspended its annual promotion
that had become synonymous with a surprise Christmas present for winners.
Bon Marché has for the first time withdrawn the French Connection promotion
in unclear reasons. However, inside sources say the move had been
necessitated by the mid-year arbitrary price controls that almost paralysed
the economy.


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Zimbabweans scrounge for food, money

Zim Independent

Paul Nyakazeya

IN the first half of 2007 the shops had food but most people did not
have money. The reason was that most people earned below the poverty datum
line.

Their salaries were not enough to buy the basic commodities.

Midway through the year (June) the same people could not find food,
even if they had the cash.

The reason was that government had cracked down on retailers and
manufacturers purportedly to deal with businesses that were profiteering.

Four months into the second half of the year the situation changed
again.

This time there was neither food nor money. The reason this time was
that banks had run out of cash and the shops were yet to recover from the
June price blitz.

The central bank was blaming cash barons whom it said were holding on
to money to buy foreign currency on the parallel market.

Most Zimbabweans will remember 2007 as probably the toughest year
since Independence.

It was a year when they had to scrounge for food even though the
country had not experienced a drought.

It was a year when they spent the longest time queuing for food
because government had cracked down on the manufacturers and retailers.

It was the year when their standard of living plunged to the lowest
levels because of the economic crisis.

For the first time in the history of this country people were asked to
bring their own bandages and syringes to hospitals.

For the fist time Zimbabweans were asked to bring their own containers
to buy milk from reputable retailers like Spar.

For the first time people could not find Coca-cola in the shops.

People in the rural areas were cut off from towns because of the
transport crisis that characterised this year. For most people however 2007
will be remembered as the year the cost of living skyrocketed as the
Zimbabwean dollar continued to lose value against major currencies. It will
probably be the worst Christmas holiday ever for most Zimbabweans.

Perhaps one measure that can clearly illustrate how miserable life was
in 2007 is the cost of living. Inflation galloped to 14 840% during the
year. In January inflation was around 1 593,6%. This means that 2007
witnessed a massive spate of price increases for all basic commodities.

A survey conducted by businessdigest revealed that two litres of
cooking oil which was being sold at $6 780 in January rose to $450 000
before being reduced to $220 000 after government ordered all retail outlets
to slash prices.

By yesterday the same quantity of cooking oil was going for $9,5
million.

A loaf of bread which cost $780 in January is now being sold above $1
000 000, but this week most bakers were still pushing for a further review.

A 10kg bag of mealie meal which cost $1 300 at the beginning of the
year is now going for between $4,5 million and $5 million.

Consumer Council of Zimbabwe director Roseline Siyachitema said
speculative tendencies this year resulted in most retailers increasing their
prices in line with inflation.

"It was a terrible year for consumers as prices of most basic
commodities were being increased, largely due to speculative behaviors. No
consumers had it easy this year," said Siyachitema.

Genesis Bank group economist, Brains Muchemwa, said price increases
this year were "astronomic" and consumers felt the pinch as their salaries
were not increasing inline with the rate of increases.

"There should be a pricing system which takes into consideration the
cost build up of commodities as most prices were unjustified," said
Muchemwa.

Independent economist, John Robertson, said prices could increase at a
faster rate next year as "business try to cushion themselves against rising
production costs caused by the fall of the dollar against major currencies".

Inflation opened the year at 1 593,6% before rising to 1 729,9% and 2
200,2% in February and March respectively before touching 3 713,9% in April.

The figure rose further to 7 251,1%, 7 634,8% and 6 592,8% in May,
June and July.


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Why Zimbaweans do not bank cash

Zim Independent

By Nhlanhla Nyathi

CASH is the simplest method of payment and means of settlement for
virtually any type of transaction.

There is no latent risk associated with a cash transaction unlike
other forms of payment such as cheques, electronic transfers and many other
information technology-backed systems that can go wrong.

Most forms of payment disadvantage either party in a transaction as
goods are sometimes released after the seller confirms credit of funds in
their bank account or sometimes goods are released without confirmation of
payment having gone through the account. Such an arrangement requires a
certain level of trust as one party in the transaction has the upper hand
over the other.

It is clear why cash is a favoured method of settlement especially in
developing countries facing financial challenges in rolling-out costly IT
infrastructure to support cashless transactions.

In Zimbabwe like any other country, cash is used on a daily basis
albeit in higher proportions because of the effects of the
hyper-inflationary environment that has eroded the purchasing power of the
Zimbabwe dollar because of the economic recession.

This could justify the running of the printing press now and again by
the Reserve Bank of Zimbabwe (RBZ) to compensate for eroded buying power of
money in circulation. Although the hyper-inflationary environment as
indicated by the October inflation rate of 14 840%, can in part explain the
high demand for cash, the informalisation of the Zimbabwean economy ushered
in by the economic recession pursuant to the shutdown and scaling down of
operations by many multi-national companies (MNCs) has had a hand in the
shift in modus operandi of the whole economy resulting in the high usage of
cash.

MNCs and large local corporate entities dominated the commercial
trading environment. MNCs were well organised and set a strict corporate
culture based on transacting with bona-fide banking institutions that
partnered them in their long-term growth strategies. Consequently all
financial transactions were handled by their personal bankers to facilitate
servicing of loans and to maintain a banking track-record for future loan
appraisals.

In addition, banking institutions had access to foreign currency and
well developed International lines of credit, encouraging MNCs to bank all
their sales revenues to access the foreign currency.

The era of the economic recession heralded the shut-down and scaling
down of operations by most MNCs ushering in the era of the informalisation
of the Zimbabwean economy.

The informal sector was characterised by small business operations,
the main objective of which was to fill the gap left by the closure of MNCs.
For Zimbabwe, the informal sector was the only viable option as MNCs and
foreign direct investment was not forthcoming due to negative international
perception.

Unfortunately the informalisation era brought with it new
complications associated with the fact that most of the new entrepreneurs
did not have adequate capital to effectively replace MNCs. The corporate
culture of yester-year broke down with the informalisation of the economy as
most of the entrepreneurs tried to make ends meet with little working
capital and with virtually no access to the privileged personalised banking
MNCs used to have.

Most people in the informal sector do not have business accounts with
commercial banks or deliberately operate out of the banking system to evade
the Zimbabwe Revenue Authority tax net.

Those who had business accounts maintained them for the sole purpose
of clearing the odd cheque received once in a while. Consequently, the
corporate culture of yester-year has transformed to that of fragmented
entities more inclined to use cash in their daily dealings because of the
lack of access to the total banking package.

There is no need to deposit sales revenues because the informal sector
has no loans to service and no hope of accessing other investment banking
services offered by financial institutions.

The privilege previously enjoyed by MNCs through personalised banking
has become a pipe-dream for the informal sector, resulting in many financial
transactions being undertaken outside the banking system.

The prohibitively low withdrawal limits imposed by the RBZ further
exacerbated the need to keep cash outside the banking system. Many people
knew that if they deposited cash, difficulties would be experienced in
withdrawing it because of the unworkable daily limits placed on withdrawals
and yet the cash was needed on a daily basis to purchase foreign currency
that had found its way to the parallel market.

Press reports indicating that $65 trillion is missing from the banking
system came as no surprise. The informalised Zimbabwe does not need to
deposit cash because it simply circulates outside the banking system to buy
foreign currency used in the importation of trading stock and thereafter,
the stock in trade is sold for cash to the public.

It is a vicious cycle that operates efficiently outside the banking
system. If foreign currency was available in the banking system, there could
be a motive to deposit all savings as part of the effort of accessing
foreign currency.

As it stands, foreign currency is in the illegal parallel market,
outside the banking system and the Zimdollar, which is the primary agent
used to buy hard currency, once withdrawn from the banking system will keep
circulating outside the banking system chasing dwindling foreign currency
inflows.

The amount of local dollars needed to purchase hard currency will keep
increasing in line with the depreciation of the Zimbabwe dollar on the
parallel market, further putting pressure on the RBZ governor to print more
cash.

Plans by the RBZ governor, Gono, to initiate the second phase of
slashing zeros and subsequently introducing new bearer cheques through
operation Sunrise 2 will not stop the vicious cycle.

Cash barons will slowly build up their cash piles outside the banking
system through their various business empires and get back to business as
usual. This has become a business culture in the informalised Zimbabwe.

The wait-and-see attitude adopted by the RBZ governor to the current
cash crisis only serves to strengthen people’s resolve to remove money from
the banking system and keep it in their homes. Zimbabwe has fundamentally
changed since the onset of the economic recession and will only normalise
once foreign currency becomes available through the formal banking system.

Even the introduction of higher denominations will not help the
situations. It seems that barons are here to stay unless and until Zimbabwe
sorts out its economic mess.

Nyathi is a director of LCE Capital, a private firm trading in the
United Kingdom and Zimbabwe. He can be contacted on 0912 250 092.


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Zim's ICT development lags behind

Zim Independent

Boldwill Hungwe

THE 2006 World Economic Forum’s Global Information Technology report
ranked Zimbabwe last among Southern African economies that are developing
Information and Communication Technology (ICT).

The Harvard scale of ICT usage was employed in determining grades and
Zimbabwe was rated 2,4 on a scale of five.

Moreover, the sector is still on stage 2 of the HUG scale which is a
model used by Harvard University to measure ICT development level of a
country.

The low rating seems to fly in the face of the initiatives that
government claims to have taken in order to enhance the development of ICTs
in Zimbabwe.

The question then is how that National ICT policy framework in
September could make Zimbabwe’s position better on the ICT development
ratings?

While the government’s move can be viewed by many as positive, more
certainly needs to be done to improve the political and economic environment
for ICTs to develop.

The government’s position on ICTs, on a verbal note, exposes its
determination to do so.

"Zimbabwe will be counted among other developing countries that have
embraced ICTs and whose people’s lives have been transformed by the
development of communication technologies," Information minister Sikhanyiso
Ndlovu was quoted as saying in a local daily.

What is left is the government’s commitment to see to it that such a
proposition won’t lie idle like many polices that fell short of
implementation.

Much has been said about President Mugabe’s sourcing and distribution
of computers in schools and the rural electrification programme that the
government has embarked on.

Some quarters have applauded that as a huge promotion for ICTs in
Zimbabwe.

Given the present political and economic challenges the country is
facing, it is highly unlikely such an endeavour will yield positive results
for ICT development unless urgent measures are taken to improve some areas.

Zimbabwe has limited access to ICTs owing to several reasons.

A Zimbabwe e-readiness survey report 2005 says ICTs access is hampered
by high tariffs for using the infrastracture and ICT services.

Zimbabwe relies heavily on imported electricity. The power generated
locally is not able to meet the demand, the report said.

The report says the legal framework is another major threat to the
development of the ICT sector.

Critics have noted with concern that provisions of the Broadcasting
Services Act of Zimbabwe and the Interception of Communication Act pose a
huge threat to the development of ICTs.

The Postal and Telecommunications Regulatory Authority of Zimbabwe is
also the biggest impediment to the development of ICTs.

Zimbabwe’s regulatory bodies lack coherent policy framework to guide
the ICT sector, the e-readiness report said.

"While Zimbabwe has committed itself to fulfilling the TRIPS
Agreement, it lacks cyber laws in its legal framework to address e-commerce
issues such as on-line contracts and digital signatures" the report said.

"Like any other country, for example USA has the Patriot Act. The
problem comes on the interpretation and implementation of the laws, with
some laws having been applied impartially," said Brian Mukudzavu, a local
ICT expert.

Some have criticised the defective application of the law by the
regulatory bodies.

Critics say BAZ and Protraz were not functioning properly because of
political interference.

They said the two organisations have shown that government is not
interested in reforming the laws that govern communication and ICTs in
Zimbabwe.

"The government considers the telecommunications as a strategic
industry and that’s why it took so long for government to issue mobile
operating licenses to independent players."

Mukudzavu said Zimbabwe’s laws don’t outrightly promote the
development of ICTs,

He said so far BAZ had not issued a license to independent radio
players even though it was established to do specifically that.

"Licensing should be done taking convergence into divergence as the
case with Zimbabwe at the moment," said Mukudzavu.

There is concern in business circles that investors will continue to
shun Zimbabwe and opt for other neighbouring countries like South Africa and
Botswana because of their investor friendly laws.

Botswana has already embarked on extensive public consultation to
liberalise its communication related industries and move towards
convergence.

The ICTs sector has also been affected by the inflationary
environment. Products such as mobile phone lines are scarce and most find
their way onto the black market where they are sold at exorbitant prices.

International renowned IT companies have left the country because of
the economic problems.

"IBM and Microsoft left the country because the economy is not
performing but that in itself cannot be an excuse for not excelling in the
field of ICTs," said Mukudzavu.

Skilled IT personnel are also leaving the country for neighbouring
countries like Namibia, South Africa and Botswana.

"Companies are no longer investing in training of staff in fear of
losing them to brain drain," said a director with a local ICT distribution
company.

Tafadzwa Nyoni, a Zimbabwean IT expert based in Namibia, said he left
the country because of the underperforming economy. He felt he was also not
growing professionally because of the lack of development in the sector.

"I could not continue to live on peanuts while I am aware of the value
of my potential in IT which is well respected in Namibia when it comes to
remuneration" he said.

Zimbabwe also has high levels of piracy in the ICT sector. There is
need to increase the bandwidth. Mukudzavu, made an appeal to ISPs not to
charge people using local traffic and try to do mirroring of international
websites.

The e-readiness report also suggested recommendations that if applied
could help in the development of ICTs.

Appropriate policy interventions, the report said, could be
established to ensure ICTs are fairly made available to disadvantaged groups
and rural communities.

The tariff structure could be rationalised to make it more affordable
to subscribers, the report said.

There is need to "encourage full utilisation of existing communication
infrastructure in order to minimize underutelised capacity which constitutes
wastage of investment resources" the report stated.

While there is a strong consensus that the recommendations in the
e-readiness report are important in developing ICT in Zimbabwe, analysts say
the declining economic and political environment will continue to impact
negatively on the sector.

Hungwe is the chief photo-journalist for the Zimbabwe Independent.


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Miracle survivals in 2007

Zim Independent

By Martin Tarusenga

WITH all the problems that have come with Zimbabwe’s economic crisis,
it is surprising that many companies have still managed to pull through
2007.

I remember a launch meeting that I had with a director of one listed
company in January. He was quite worried about the year ahead.

"Tell me how we are going to survive this year?" he asked me. I could
tell that this was not just a "social question".

It was a veiled business enquiry meant to extract some free advice on
the strategies that he could implement to make sure that his company at
least lasts until the end of the year.

He had obviously asked the same question to many other people. The
idea, I believe, was to gather as much information as possible in order to
come up with a plan. As the conversation progressed I could see that his
main worry was the management of treasury.

He had every reason to be concerned about that area because inflation
was showing signs that it will not stop galloping anytime soon. At the time
of writing this article inflation was about 14 840%. The company has not
performed exceptionally well but at least it did not fold.

In such an environment survival is the main goal of every company.

The past year was probably the toughest for most companies in
Zimbabwe. It required a certain degree of financial dexterity to survive.

Managers and directors had to deal with revenues that lose purchasing
power before they are received. At the same time there was increasing
corporate financial obligations which included increasing staff costs and
foreign currency-denominated expenditure for corporate capital equipment.

All these came on the back of government’s hard line position against
staff downsizing. Companies just had to keep their workers or face the wrath
of the government which has unfortunately deluded itself to believe that
there was a grand plan to change the regime.

Exchange controls and regulations were made even stiffer to create
government-captive financial/capital markets. Price controls ate into
corporate margins and profits.

It was a crisis in every respect. The regulators did not make it any
better.

The RBZ for instance requires 35% of any foreign currency that
corporations earn — with the additional condition that any remaining foreign
currency in an FCA must be used within a month of being deposited or else it
is forfeited to the RBZ.

Regarding financial obligations price controls put a lid on how much
corporates could earn from local sales. Staff costs were however less easy
to control because of legal and political issues.

What’s worse, overdraft and other loan facilities were hard to come by
as banks became reluctant to lend in the face of biting inflation,
controlled lending rates and high credit default risk.

The ZSE as a source of corporate finance remained limited to those
wealthy corporations. Credit, debit cards and other forms of convenient
electronic payment systems were still limited to the middle to upper class.

The RTGS system in Zimbabwe has recently shown its lack of capacity to
handle the influx of settlements as economic actors pushed to reduce
exposure to the Zimbabwean dollar in a reaction to RBZ threat to render any
excess liquidity valueless.

Despite the hostile economic environment there was clear evidence of
residual economic activity which showed that it was almost resistant to the
politically induced economic crisis.

One wonders how these activities could have succeeded in being so
resistant. Treasury departments must be working very hard. What stands out
against the inhibitive economic fundamentals deriving from the said controls
and regulations are emergent economic activities outside of the politically
selfish controls and regulations.

The evasion of the controls is of course to be expected from all
rational people including even the selfish crafters of these regulations.

Simple arithmetic tells us this is the case with proceeds from the
export of primary goods like minerals and agricultural product which rarely
find their way back into the economy.

The same applies to export proceeds of accounting, actuarial, and
other tertiary skills exports that Zimbabwean companies and individuals
provide.

The battle for survival by rational welfare-maximising economic actors
against all forms of government inhibitive controls has intensified. No
government in the world has ever won a battle against the market.

As corporations seek to survive they will need forex to buy the
foreign currency to buy capital equipment.

Equally, the corporation will need to keep local currency to pay the
restless local staff and local suppliers.

Treasury departments in Zimbabwe are obviously working ingeniously to
keep the corporates afloat through correct levels of liquidity, maintenance
of appropriate lines of credit and using accurate forecast models.

One apparent way Zimbabwean corporations are meeting their forex
obligations is partner with foreign companies say in the UK that specialise
in taking say the pound sterling in exchange for paying out the Zim dollar
to beneficiaries in Zimbabwe at the prevailing parallel exchange rates.

Such companies include those that operate legally within the RBZ money
transfer agency framework. Partnerships with such companies, "legal" or
otherwise enable the local corporation to raise forex from the foreign
company.

Forex telegraphic transfers can be made by the foreign company for
purchases of desired imports.

The other apparent method of raising forex is for the corporations to
raise forex directly from the domestic parallel market in exchange for the
Zim dollar. The forex can be sourced from incoming tourists, Zimbabweans
working abroad and those who have decided to make a living smuggling forex.

Individual forex money brokers have also been doing brisk business
especially at Road Port where in theory they operate outside of the
prescribed exchange controls.

We are in reality, a dollarised economy hanging onto a useless
Zimbabwean dollar for the sake of selfish politicking.

The hard cash raised from such parallel market deals ends up in legal
FCA’s where they are cleared within the stipulated periods to offshore
accounts that the RBZ will never ever track.

Another way is to buy Old Mutual shares at the ZSE and sell them at
the LSE. It appears treasury departments just need to be technically
compliant for their corporations to keep afloat.

Such efforts to evade government controls are not necessarily new to
Zimbabwe. Restrictions on dollar lending and borrowing in New York in the
1960s and 1970s coupled with stringent reserve requirements contributed to
the emergence of the now popular Euro-dollar markets.

In the face of controls similar to those in Zimbabwe, investors in
Venezuela buy shares of Venezuelan stocks like their renowned CanTV and sell
them in New York for US dollars.

Markets are forever the winners, always a step ahead, and authorities
in developed economies have since learnt to simply work with them.

Tarusenga is principal consultant with systemics consulting. Contact
Mtarusenga@aol.com. Tel: 0912 889 716.


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Property market still subdued

Zim Independent

Paul Nyakazeya

THE property market remained subdued this year, with prospects of
recovery remaining weak on the back of increasing inflationary pressures
which persisted throughout 2007.

According to a Knight Frank’s Africa Report of Property for 2007,
there were minimal residential developments in the country this year with
"residential development activity mainly focused on the servicing and
subdivision of land".

The first half of last year saw the property market playing second
fiddle to other investment vehicles such as the money market and the stock
market.

This trend continued until government embarked on a controversial
price blitz in June.

Eric Shilton of Real Homes said property sector was hampered by
government’s bureaucratic system which made it impossible for developers to
put up new structures.

"The cumbersome bureaucratic system has seen property playing second
fiddle to other investments markets. The regulations have made transactions
in the property sector slower."

He said many residential properties were not completed because of the
cost of building materials. Other costs in the construction sector have gone
up as well.

"Potential homeowners are less optimistic about property market
prospects in the coming year (2008) as evidence by the reduction of house
and building which were completed this year," Shilton said.

Real Estate Institute of Zimbabwe (REIZ) said for the eighth year
running, there were no major developments on the property market due to the
unstable economic environment and hyperinflation.

"Demand for space to let, particularly commercial, continued to shrink
as companies downsized on space requirements," REIZ said.

"Rentals, although increasing in sympathy with inflation, were still
way below regional levels and at the levels they are, are not good enough to
attract new developments."

REIZ said current office rentals were under US$1 per square metre
compared to between US$5 and $10 per square metre in the region.

"Rental returns for property owners were severely being affected by
inflation-driven building operating costs, in particular rates, water and
security," REIZ said.

"The tenant, in deciding to take up space, looks at the total
occupation costs and we now have in the majority of cases instances where
operating costs exceed rentals by up to one and a half times," REIZ said.

REIZ said there was an acute shortage of houses and flats to let,
contributing to the steep rise in rentals.

"In the case of houses and flats to let, one particular supply side
bottleneck is the much talked about Residential Rent Regulations which
caused institutions to shy away from housing as this sector had poor returns
due to controls."

Properties remained priced beyond many potential buyers in a market
where the bulk of the country’s working class no longer qualify for bank
loans or mortgages.

"High inflation has led to the dollarisation of prices whereby the
market considers residential property values in US$ terms even though
transactions can only be legally undertaken in Zimbabwe dollars," said
Knight Frank in a report.

"In terms of local currency, values have risen by over a 4 000% since
the beginning of the year," Knight Frank said.

A standard medium-density house, which cost between $150 million and
$200 million in January last year, is now priced above $100 billion.

A standard three bed-roomed house in the high-density areas now cost
over $50 billion from $60 million in January.

Some houses in low density areas are prices at over a trillion
dollars.

Figures obtained from Southbay Real Estate indicate that, rentals in
Harare had also significantly gone up.

Rentals for residential properties for medium and low density houses
were pegged at between $150 000 and $300 000 in January but are now at above
$100 million.

Most home owners are now charging their rentals in foreign currency.

The trend of quarterly rent reviews became the norm as property owners
sought to cushion themselves from the galloping inflation. The year saw a
decline in industrial output.

"Although the prevailing poor economic environment has led to a
decline industrial output, there are no vacancies in Harare and Bulawayo,"
said Knight Frank.

Knight Frank said occupier demand during the year from emerging small
enterprises was very strong for small industrial units (200-500sq m).

"Institutional interest in industrial property investment however has
waned over the last few years, reflecting a perception that the sector will
continue to decline in the short to medium-term."

Knight Frank said high quality retail space is fully let with not
major developments in the pipeline.

"As with offices, institutions are showing strong interest in suburban
retail space although, due to lack of supply, this can only come in the form
of new developments," said Mazarire.

According to information gathered from the country’s four building
societies; Central African Building Society, Beverley, Intermarket and FBC
Building Society most mortgage applications were turned down because the
applicants did not meet the income requirements.

Compared to other investment, the property seems to have benefited
from the price blitz.

With other sectors struggling due to price controls investors seemed
to have found an option in the form of the property sector.

This growth came in the form of prices and no new structures.

However, even that recovery was not enough to surpass the growth on
the stock market.

According to the Genesis Bank group economist, Brains Muchemwa, the
unlisted property market to date has gained an average of 80 000% against
inflation rate year to September at 3 576%.

"The property sector, though a huge disappointment when compared to
other asset markets in Zimbabwe, has been exuberant on the back of
increasing money supply, foreign currency shortages and dwindling influence
of the construction industry since 2002," Muchemwa said.

Muchemwa said the fact that properties were trading at a huge discount
means that unlisted property market in Zimbabwe remains a very attractive
market.


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Surviving power outages the smart way

Zim Independent

I AM a nomad. If conditions at a particular place are not conducive to
grafting, I go find somewhere else to work. However, that’s not always
desirable — or even practical.

One situation that comes up frequently in Harare during the rainy
season (well, whatever season), is the loss of power. Now, depending on when
the magetsi (power) goes and you have work to do, you can either call it a
day and hit the pub, or suck it up and get to work. Yeah it’s possible to
get work done in a power-cut — if you have the right stuff beforehand.

There are four basic requirements for spending the working day without
AC power:

Some kind of phone, either a corded landline or cell, or both

A laptop (or many, if you’re a rich bugger) with spare batteries;

Some form of Internet connectivity; dial-up, CDMA or preferably
broadband;

Non-perishable food you can get to without opening your fridge.

A phone seems like a given for a worker, but it’s especially important
in a power-cut. Given how popular cordless phones are these days, you should
always keep a hard-wired handset around; those default red PTC sets are
perfect. Even if you’re landline free, make sure you have a mobile with
either a fully charged battery or a spare.

A laptop is also a given for today’s workers. What may not be obvious
is the need for extra batteries. Now, I know how hard it can be to get any
thing out of the accounts for accessories (I once had to sweat bullets just
for a USB mouse), but remember most laptops won’t last much more than a
couple of hours on batteries. Extra batteries give you extra runtime in a
power-cut.

Of course, a phone and laptop don’t mean jack if you have no way to
get online. I have broadband using a USB modem, so my "net"works even with
no power (the USB modem draws power from the laptop batteries). If you’re
not so lucky, you have to settle for dialup speeds using an analogue modem.

You can replace a phone and laptop with a higher-end smart phone. They
often include support for email and web browsing. While the form factor of
these device can be awkward to deal with, in a pinch they frequently do the
biz.

Finally, you need chow. It’s hard to get any work done under any
conditions if your basic needs aren’t met. Make sure you have non-perishable
food readily accessible; last thing you want to do is open the fridge,
causing cold air to be let out (don’t want the perishables going bad).

Being able to work powerless is not for everyone. It’s not practical
for some jobs or locations; neither is it cheap. However, with the resources
and preparation, it can be done.

Right, where did I put my maputi?

Your Internet junkie,

Yoshi.


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Congress ignored economic crisis

Zim Independent

Orirando Manwere

LAST week’s Zanu PF extraordinary congress, which endorsed President
Robert Mugabe’s candidacy for the 2008 presidential election, failed to
address the political and economic crisis facing the country and exposed the
party’s continued abuse of sate resources to remain in power, analysts have
said.

Zanu PF, the analysts say, continues to cling to power due to vote
buying, corruption and exploitation of ordinary party members.

They alleged that Mugabe secured his endorsement after distributing
cars and farming equipment to traditional chiefs and party members and used
war veterans through their leader Jabulani Sibanda last month to organise
the so-called million man march to garner support for him.

Ironically, the analysts observed that Mugabe told the congress to
fight corruption and vote buying to ensure election of the right candidates
for legislative and council elections.

Mugabe said it was the election of party candidates that often
presented problems in the ruling party as prospective leaders resorted to
vote buying.

The congress came at a time when the country is experiencing its worst
economic crisis, coupled with an unprecedented cash crunch which central
bank governor Gideon Gono, in his address to congress, blamed on unnamed top
government and ruling party officials.

Despite the remarks by Gono on inherent corruption by the party and
government officials, the congress failed to adopt practical measures to
curb the rot except appealing to "all citizens to combat corruption wherever
it occurs" as one of the congress resolutions.

The analysts said the ruling party’s congress had failed to address
"bread and butter" issues affecting the country and exposed the leadership’s
double standards in ensuring their continued stay in power.

University of Zimbabwe (UZ) political scientist John Makumbe said the
nomination and endorsement of Mugabe was clearly undemocratic and could not
be compared to this week’s ANC congress in Polokwane where members freely
chose leaders through secret ballot and public debate.

"Prior to the Zanu PF congress, members were coerced to endorse
Mugabe. They were not allowed to choose alternative candidates as happened
at the ANC congress. This clearly demonstrates that Zanu PF is an
authoritarian party where incumbent leaders ensure that they remain in power
by hook or crook," he said.

Makumbe said the congress had failed to come up with concrete measures
to combat corruption following Gono’s allegations that top government
officials were behind the current cash shortages.

He said the congress had also failed to review economic policies to
arrest the current crisis.

Another UZ political scientist Eldred Masunungure said it was
unfortunate that Zanu PF had also roped traditional leaders, who are
supposed to be apolitical, into divisive politics.

"Remarks by Chief Fortune Charumbira that traditional leaders were
behind President Mugabe because he had given them cars, tractors and land
clearly show how the ruling party has continued to abuse state resources to
get support," Masunungure said.

"I don’t think Chief Charumbira sprang a surprise. He and the rest of
the traditional leaders have been openly pro-Zanu PF.

"They have become part and parcel of Zanu PF and they have been
entangled in the Zanu PF gravy train."

Instead, Masunungure argued, traditional chiefs must have been
unifying factors in their areas of jurisdiction.

"They have become partisan because of the (material) things they are
being given by government. How do you expect them to allocate farming
implements and inputs to people who do not support Zanu PF in their areas?
There is now a "Zanufication" of society," he added.

In a solidarity message to the congress, Charumbira — who is the
president of the Chiefs Council — said the traditional leaders were happy
with Mugabe and they would "go out in full force" to mobilise communities to
vote for him in the 2008 elections.

Said Charumbira: "In the run up to the congress, some people from the
opposition were asking me if I would be attending the Zanu PF congress. I
don’t understand why they would ask such a question.

"Why don’t they understand that Cde Mugabe and Zanu PF were
responsible for reclaiming the land that had been stolen from us?

"You can not be called a chief when you have no land. We will die with
you. Chiefs have two responsibilities, to fight for their subjects and fight
for their country."

He said the notion that traditional leaders should be apolitical was
"hogwash" and chiefs from Zimbabwe would not allow it to deter them from
supporting Zanu PF in its agrarian reforms.

Chief Charumbira said chiefs were surprised that the MDC had
"smuggled" the issue of the "role of chiefs" on to the agenda of the
inter-party talks.

"Chiefs have been given cars and tractors under government schemes and
the right to work with those in charge of Operation Maguta (a food security
programme spearheaded by security forces) in the allocation of agricultural
equipment procured by the Reserve Bank of Zimbabwe under the farm
mechanisation programme," Charumbira said.

Commenting on corruption, Masunungure said the congress had failed to
act upon Gono’s remarks because the top leadership was involved.

Gono told delegates to the congress that some of the cash barons who
have caused the serious shortage of cash in the country were senior
government and ruling party officials abusing their mandate to lead the
implementation of its programmes.

Masunungure said if the government was committed to fighting
corruption, there should be arrests and prosecutions of the culprits.

"Instead, nothing has happened. Ordinary people including Zanu PF
supporters are suffering, as they cannot access cash from banks. The
congress shied away from discussing and coming up with concrete measures to
address this problem. Zanu PF supporters left the congress angry," said
Masunungure added.

Speaking at the congress, Zanu-PF Mashonaland East provincial chairman
Ray Kaukonde challenged Gono to produce a list of the alleged cash barons so
that they could be brought to book.

"We want to ask what is causing these people not to be arrested…I hope
heads will roll on this issue because people are suffering and production is
at a standstill as they queue for their hard-earned cash," said Kaukonde.

National Constitutional Assembly chairperson Lovemore Madhuku said
Zanu PF could not talk about combating corruption because "the whole Zanu PF
machinery is corrupt".

He said the invitation of Gono to address members of the ruling party
at its special congress was in itself an act of corruption and abuse of
personnel from state institutions.

"Zanu PF can not talk about curbing corruption.

"You need a completely new political leadership guided by a new
democratic people-driven constitution to deal with that and the rest of the
factors affecting our country," said Madhuku.


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Strike action paralyses judiciary system

Zim Independent

Lucia Makamure

ALBERT Matapo, one of the six men accused of plotting to topple
President Robert Mugabe in May, is certainly going to spend the festive
season in remand prison as a result of the current strike by magistrates and
prosecutors.

His bid to file an application for refusal of further remand fell by
the wayside, as the courts could not hear it due to the industrial action
and it will probably be heard next year if the magistrates resume work.

Matapo’s lawyer Charles Warara said he wanted the courts to free his
client and join his family and enjoy the festive season as he was convinced
that he did not commit treason as alleged by the state.

"We wanted to make an application for refusal of further remand but we
cannot as long as the magistrates and prosecutors are not at work," said
Warara.

Matapo is just one of the many suspects who have been denied their
right to speedy justice as enshrined in the constitution because of the
strike.

For the first time in Zimbabwe’s 27 years of Independence, magistrates
and judicial officers went on strike in protest at poor working conditions
and low salaries thereby denying litigants and accused persons their right
to swift justice in the courts.

The industrial action that is in its eighth week has virtually
paralysed operations at the magistrates courts throughout the country with
law experts saying criminal courts have been turned into remand
institutions.

Regional magistrates, who did not join the strike, are dealing only
with remand cases.

Besides dealing with criminal cases the magistrate courts also handle
civil cases such as solemnising marriages, maintenance issues and
appointment of executors.

Prominent lawyer Alec Muchadehama said the situation at the courts has
become desperate as they have been reduced to remand institutions.

"Since the strike started in October the courts have been failing to
handle court applications, sentences and acquittals and other judicial
procedures, but now they are
only dealing with remands," said Muchadehama.

In an interview with The Zimbabwe Independent, Muchadehama said the
judiciary is the weakest arm of the state since it has no money of its own
and relies on handouts from others which therefore robs it of its
independence.

"Their substance depends on the Public Service Commission which itself
doesn’t have money and can choose when to or not to give them money," said
Muchadehama.

Muchadehama bemoaned the losses that have been incurred due to the
strike.

"How does one quantify the loss to clients who have paid their lawyers
to go to courts and the time that has been lost yet no one has come forward
to explain to the nation why they are being denied their basic human
rights," Muchadehama said.

He added that all that is happening at the courts mirrors that the
country has lost respect for the rule of law.

"It is high time that someone challenged the government for infringing
on the basic rights of people. The government has an obligation to explain
to people on what is happening at the courts," added Muchadehama.

Last week at least 150 lawyers signed a petition calling the
government to address the grievances of the striking magistrates,
prosecutors and court support staff.

The petition was handed to parliament on Monday in recognition of the
International Human Rights Day.

The human rights lawyers said they were concerned with the continued
violation of human rights.

"Zimbabwe Lawyers for Human Rights and its undersigned members and
some of its partners’ members note with concern the continued violation of
human rights with impunity by the government of Zimbabwe, and its refusal to
address the country’s long standing human rights concerns," said the lawyers
in the petition.

In the petition, the lawyers said the strike was making life difficult
for suspects and those in remand.

"The on-going strike by the magistrates, prosecutors and the court
support staff has made the lives of suspects and those on remand difficult,"
the lawyers said.

"Because the courts are not working, the prisoners at police stations
are not taken to court within the stipulated time limits, or at all.

"Those in custody continue to be deprived of their rights to liberty
and trial within a reasonable period, all because the government is broke
and unable or unwilling to give the court officials remuneration that
enables them to live in dignity."

The human rights lawyers called upon the government to improve the
working
conditions and salaries of judicial and legal officers.

"The government is called upon to award decent salaries to and improve
the working conditions of the affected judicial and legal officers."

Earlier this year in January Justice Rita Makarau took a swipe at the
government for neglecting the judiciary when she officially opened the 2007
legal year.

"It is wrong by any measure to make the judiciary beg for its
sustenance. It is wrong to make the judiciary beg for resources from any
other source. Yet, if I do not do so today, the judiciary shall continue to
operate without computers, without adequate stationery and shall continue to
use libraries that the Chief Magistrate has aptly described as varying only
in their degrees of uselessness," said Makarau in her speech.

The judiciary also happens to be one of the hardest hit government
departments by the brain drain.

The UN Guidelines on the Role of Prosecutors adopted by the Eighth
United Nations Congress on the Prevention of Crime and the Treatment of
Offenders, Havana, Cuba, August 27 to September 7 1990 expressly and without
reservation state that reasonable conditions of service of prosecutors and
adequate remuneration should be facilitated and made available by
governments.

This is so as to improve access to justice and fair treatment,
restitution, compensation and assistance for victims of crime.

The year ends on a low note as a number of suspects who include
suspected criminals and traffic offenders who are in custody awaiting trial
will greet the New Year behind bars as the government has robbed them of
their basic rights to a fair trial within a reasonable time as enshrined in
the United Nations Declaration of Human Rights.


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Beyond human rights violations

Zim Independent

By Alex Magaisa

RECEIVED wisdom attributes the collapse of Zimbabwe to rampant abuse
of human rights. So pervasive is this view that the language of human rights
dominates every facet of discourse on Zimbabwe.

That the human rights perspective is so dominant is testament to the
great efforts of the human rights movement both in and outside Zimbabwe.

The result is that challenges to the power and legitimacy of the
Mugabe regime are invariably predicated on human rights violations.

That may well be true but to the extent that it obfuscates other
grounds upon which the authority of the regime can be effectively
challenged, the human rights narrative has been limiting.

In other words, it is important to appreciate that there are other
ways of attributing the collapse of Zim