http://www.theindependent.co.zw/
Thursday, 03 December 2009 20:10
THE Zanu PF
negotiating team in the current round of talks with two MDC
formations has
angered its party leaders after making critical concessions
on the media
without consultation, in a move which could see President
Robert Mugabe's
party losing its grip on the public media.
The situation has
triggered uproar in Zanu PF which has left the party
divided on contentious
issues at the negotiating table, while reinforcing
the main MDC faction's
leverage in the increasingly problematic talks.
Sources close to the
talks said Zanu PF negotiators Nicholas Goche and
Emmerson Mnangagwa, who
was standing in for Patrick Chinamasa while he was
out of the country,
surprised even MDC negotiators when they gave in on the
media reforms. MDC-T
has tabled a number of proposals on media changes
including reforms of
public newspapers under the Zimpapers group and the
state broadcaster ZBC.
The party also wants sweeping reforms of media laws.
Sources said
Zanu PF negotiators were backtracking on several other
outstanding issues on
the talks agenda. The agenda has 27 items, 21 new
issues and six old ones.
Negotiators have already ploughed through 15 items,
agreeing on 12 of those,
while disagreeing on three.
The negotiators have clashed on the
Roy Bennett, Johannes Tomana and Gideon
Gono issues and for now agreed to
shelve the disputes until they have
finalised all other matters. An
agreement has been reached on sharing of
provincial governors and what is
left is working out dates for the
implementation of the
decision.
Talks gathered momentum this week after the arrival of
South African
President Jacob Zuma's facilitation team comprising Charles
Nqakula, Mac
Maharaj and Lindiwe Zulu. The team arrived on Sunday and left
on Tuesday
after meeting GPA principals and their party
negotiators.
The team wanted to be updated on the talks, focusing on
the agenda,
progress, problems and timeframes. Sources said all parties were
impressed
by the Zuma team which has shown a different facilitation approach
and
attitude from former President Thabo Mbeki's group. The South African
team
briefed Zuma on their findings on Wednesday. Sadc executive secretary
Tomaz
Salomao is in Harare.
However, the talks have thrown Zanu
PF turmoil amid accusations that
negotiators were incompetent or were
selling out. The issue has been
brought to Mugabe's attention for a decisive
intervention.
"When the talks resumed last week Zanu PF negotiators,
who included Goche
and Mnangagwa, were badly overrun by MDC-T
representatives Tendai Biti and
Elton Mangoma," a source said. "They were
outflanked on many issues, leaving
Zanu PF exposed at the talks," a source
said. "While MDC-T negotiators
brought documents to support their positions,
Zanu PF negotiators came
empty-handed. This left the Zanu PF team at sixes
and sevens, hence the
urgent call for the party leaders to intervene to
prevent disaster."
Sources said Mugabe was alerted on the lacklustre
showing of his party's
negotiators at the weekend and steps were being taken
to address the
situation which has already been partially rescued by
Chinamasa's return.
Chinamasa's return would mean Mnangagwa's retreat to the
background. MDC-T
negotiators were disappointed because they said Mnangagwa
was open-minded
and progressive, but Zanu PF officials accuse him of
"selling out".
When the media issues were tabled last weekend, Zanu
PF negotiators, whose
performance was described as ranging from the
perfunctory to the
incompetent, surprisingly gave in on MDC-T proposals to
re-establish the
Mass Media Trust to run Zimpapers. They also agreed that
ZBC must be run by
a board appointed by parliament's Standing Rules and
Orders Committee from a
list supplied by the portfolio committee on the
media.
The Mass Media Trust was formed in 1980 when the then new
government bought
the Zimpapers stable from South Africa's Argus Group to
house the majority
shares in the newspaper group on behalf of the Zimbabwean
public. It acted
as a buffer between the government and the company which is
listed on the
Zimbabwe Stock Exchange.
However, government has
always run over the trust to ensure direct
interference in Zimpapers. The
situation deteriorated at the turn of the
millennium when the Mass Media
Trust was virtually disbanded to give
government a free hand to illegally
interfere in the running of the company,
especially regarding its editorial
policy.
Government officials from the Ministry of Media, Information and
Publicity
are known to be interfering with the company's management and its
editorial
departments. Earlier this year there were reports of government
officials
seizing cash and fuel from Zimpapers for their own use. Officials
also often
prescribe to editors directly and indirectly on what to write and
not write.
The proposal to restore the Mass Media Trust to protect
Zimpapers, agreed to
by negotiators last week although Zanu PF officials in
government are
resisting it, is designed to curb such illegal
practices.
Zanu PF negotiators also agreed last week to turn state
broadcaster ZBC into
a public broadcaster. Currently ZBC, a state
broadcaster which many in the
media say must be transformed into a genuine
public broadcaster, is
functioning like a propaganda mouthpiece for the
former ruling party or a
faction of it at least. During election periods
Zanu PF virtually privatises
and monopolises ZBC for self-serving propaganda
purposes.
Dumisani Muleya
http://www.theindependent.co.zw/
Thursday, 03 December 2009
20:02
AT a time when Zimbabwean households and industry are experiencing
persistent power cuts of up to 20 hours daily, Zimbabwe is exporting power
to Namibia at a discounted tariff to meet requirements of a US$50 million
sweetheart deal which has worsened the power crisis.
Under the
deal signed in March 2007, Namibia, which provided Zimbabwe with a
loan of
US$50 million, is supposed to receive 180 megawatts for a minimum of
five
years as part of a power purchasing agreement between Zesa and Namibia's
power utility, Nampower.
The US$50 million was meant to refurbish and
expand Hwange Power Station to
levels that would have resulted in a
"significant" reduction in power-cuts
throughout energy-crisis-hit
Zimbabwe.
But even after the huge capital injection, the power plant
is in a
precarious state. Generation has remained low, plagued by machine
breakdowns, coal shortages and structural defects. Notwithstanding all this,
Zimbabwe still has to supply power to Namibia.
The Zimbabwe
Independent understands that the deal between NamPower and Zesa
states that
Zimbabwe will "meet its part of the bargain" regardless of the
electricity
generation in the country.
"If they (Zesa) cannot generate the power
to supply us, they still must find
the power elsewhere to fulfil their part
(of the agreement)," NamPower
managing director Paulinus Shilamba was quoted
as saying in the media last
year.
Namibia started receiving power
from Zimbabwe in January last year as Hwange
Power Station was hit by
breakdowns. Sources at Zesa have said in instances
where the power station
is down, Zesa has been forced to import power and
pay wheeling costs to
satisfy the deal.
"We have had situations where we cannot import
power to feed into our
national grid as priority is given to Namibia," a
source said. "The benefits
(of the deal) to Zimbabwe at the moment are not
there."
But Zesa boss Ben Rafemoyo defended the deal. "With regards
to the NamPower
deal, people should look at the basis of the transaction. We
(Zimbabwe) did
not have foreign currency and they did (Nambia). The
refurbishment needed to
be done," said Rafemoyo.
Rafemoyo said in
the event of increased capacity by industry "it was mostly
likely that
households would not have electricity during the day to ensure
industry
operates, but the opposite would occur during the evening".
The
aberrations in the Nampower deal come amid real threats of a disaster
waiting to happen at Hwange where it is feared an unstable ash dam wall is
in danger of collapsing and completely destroying the power station during
the current rainy season.
According to a report by the World Bank
released last month, failure to
urgently attend to the problem could result
in the destruction of the entire
power plant which is situated in a valley
directly below the dam wall.
"This would result in a loss of 450 MW
at current generation levels to the
system with disastrous consequences to
the Zimbabwean economy," reads the
report compiled at the request of the
Ministry of Finance for technical
assistance.
The World Bank said
the country needs US$135 million for emergency
rehabilitation of Hwange. Out
of that US$6 million is required to secure the
unstable ash
dam.
The Kariba Dam south wall meanwhile is also in "urgent need of
rehabilitation to ensure dam wall safety", the report said.
This
would involve refurbishment of the floodgate mechanism and
strengthening of
the plunge pool to prevent further erosion backwards to the
dam
wall.
"This work is extremely urgent to ensure that dam wall safety
is not
compromised," the World Bank said.
The estimated cost for
rehabilitation of Kariba south amounts to US$84
million.
According to the report, the transmission infrastructure
was in a poor state
of repair and requires huge investment to rehabilitate
and reinforce the
network to an acceptable level. The cost for transmission
emergency
rehabilitation amounts to US$561 million.
Besides this
Zesa Holdings is saddled with a US$428 million debt which it is
battling to
settle.
The power utility's cash woes are compounded by "unrealistic"
tariffs over
the years in comparison to the viable rates levied by other
utilities in the
region.
Cash problems at Zesa Holdings also mean
the country faces uncertainty over
future supply of power considering that
the power utility has a daunting
task to raise US$385 million for emergency
power needs.
Zesa Holdings' external debt stands at US$317 million while its
internal
debt is at US$111 million.
Regional power utilities are
reportedly reducing supplies to Zesa Holdings
due to technical problems and
non-payment of debts.
Zesa is said to be getting about 100MW from
Cahora Bassa in Mozambique and
50MW from Snel in the Democratic Republic of
Congo.
The power utility's spokesperson Fullard Gwasira on Tuesday
said the
national grid had lost 160MW that were being imported from
Mozambique due to
a technical fault on that country's
network.
The World Bank said there has been a decline in Zesa's
operational,
commercial and financial performance since 1997 when the power
supplier
collected 97% for accounts due.
Zesa currently collects
an estimated US$20 million a month from its
customers, representing a 49%
rate in account settlement by customers, but
this is hardly enough to cover
its payroll.
Apart from low collections and sub-economic tariffs, the
general downturn in
the economy and lack of access to financing has
contributed to the power
utility's huge financial
distress.
"Zesa's trade creditor arrears from power imports are about
US$98 million,
of which US$69 million is over due by more than 128 days.
Zesa's external
debt arrears stand at about US$317 million (domestic arrears
at about US$111
million)," said the World Bank.
Zimbabwe has a
capacity to generate about 1 960MW of which about 1 000MG of
non-firm power
generation is available for production. Zimbabwe imports an
average of 300MW
from the region.
No new power generation stations have been built in
the country since Kariba
in the early 1960s and Hwange thermal power station
which was completed in
1986.
Most households and industries in
Zimbabwe are limited to less than 18 hours
of electricity supply daily
because of lack of investment in power
generation.
Only about 30%
of the country has access to grid electricity.
Despite advances in
technology, power experts said a lead time of up to five
years is needed to
build a power station.
The current power shortage also stems from
failure by government to
implement numerous power generation
projects.
In its System Development Plan approved by government 19
years ago, Zesa was
to build a new power station at Batoka Gorge between the
Victoria Falls and
Kariba. Like Kariba, it was to have a north and south
bank stations.
Batoka, which was to be a run-of-the-river station,
had been planned to take
into consideration environmental concerns. There
was no need to dam the
river. Batoka was to be built in conjunction with
expansion at Kariba to use
the water optimally.
However, the
Batoka project ran into problems as the Zambian government was
not keen on
it then because its economy was unstable and was unwilling to
undertake a
project with a neighbour they accused of short-changing them
during the
sharing of the Central African Power Corporation (Capco) assets.
Capco was
the predecessor to the national power utilities of the respective
countries.
About US$1,6 billion was needed for the north and
south bank power stations
in 1996.
The next project in the system
was the expansion of Hwange by adding two new
generators. To be known as
Hwange 7 and 8, the project was to be financed by
the World Bank and tenders
had been adjudicated when government decided the
tenders be given to YTL, a
Malaysian construction giant.
The problem was that the YTL was not a power
station construction firm.
The plan later changed. Hwange was to be
privatised by selling it to YTL.
The sale eventually fell through because
YTL insisted they could not inherit
a US$800 million loan used to refurbish
the station and improve its
operational efficiency provided by the World
Bank.
The default plan was Sengwe in Gokwe north where there are coal
reserves to
last for the next 100 years. Sengwe was to be developed by
mining giant Rio
Tinto and the power station was to be built by National
Power of the UK.
It had been planned that Sengwe would then generate
power to replace the
capacity which would have been generated by Batoka and
an expanded Hwange.
The souring of relations between Zimbabwe and
Britain after 1997 got in the
way and Sengwe was never built. Plans for gas
turbine runners to generate
power in Lupane south also suffered the same
fate. The project was initially
linked to the British and later to the
Chinese before it fizzled out.
The old thermal power stations built
in the late 1940s in Harare, Bulawayo
and Munyati, despite their
refurbishment in the mid-1990s, are too expensive
to run and are almost
obsolete.
Zesa does not have funds to buy coal and bring it all the
way from Hwange.
Rafemoyo told the Zimbabwe Independent that
depending on the site, type of
generation station and amount of work, a
power station takes between four to
seven years to
construct.
Paul Nyakazeya
http://www.theindependent.co.zw/
Thursday, 03 December 2009 19:58
ZANU PF Women's League
boss Oppah Muchinguri is reportedly planning to fight
from the floor at the
party's congress next week against the nomination of
Vice-President Joice
Mujuru as the party's second secretary ahead of her.
Sources in the party
told the Zimbabwe Independent this week that the
congress was likely to be
stormy because of increased factional fighting
escalated by last month's
nomination of the presidium.
There are two main factions in Zanu PF
fighting to succeed octogenarian
President Robert Mugabe. Defence minister
Emmerson Mnangagwa's camp is
entangled in a bitter struggle for power with a
faction led by former army
general Solomon Mujuru.
Mnangagwa's
camp was ruthlessly crushed in last month's Zanu PF presidium
nominations.
The majority of the 10 Zanu PF provinces sided with
the Mujuru camp and
nominated Joice Mujuru and John Nkomo as the party's
co-vice presidents and
Simon Khaya Moyo as chairperson.
Mnangagwa
wanted Nkomo and Muchinguri as vice-presidents and Kembo Mohadi as
chairperson.
The sources said apart from Muchinguri's blazing
guns, party secretary for
administration Didymus Mutasa with the backing of
senior politicians in
Manicaland and Mashonaland West province wanted the
congress to overturn the
nomination of Moyo as party chairman citing
procedural irregularities.
Muchinguri, the sources said, has been
mobilising resources and support to
mount a challenge against Joice Mujuru's
nomination on the basis that it was
irregular.
"Muchinguri has
been to South Africa to mobilise resources to reverse Mujuru's
nomination,"
a senior politburo member said. "She has been all over the
provinces seeking
support. She feels the nomination was un-procedurally
done."
The
Women's League boss was nominated vice-president by Masvingo province,
which
later withdrew its support for her after results from other provinces
showed
Mujuru had won in more than five provinces.
The move by Masvingo, the
sources said, was irregular and should not have
been allowed.
In
the case of Mutasa, the sources said, he would contend at the congress
that
he failed to garner the required support after provinces were made to
believe that the chairmanship was reserved for ex-PF Zapu members in line
with the 1987 Unity Accord.
Apart from that, provinces such as
Mashonaland Central and Mashonaland West
had initially nominated Mutasa
chairperson before making a U-turn.
In Mashonaland West, Mutasa's
supporters this week claimed that politburo
members misinformed the party
that the province had nominated Moyo when it
had selected
Mutasa.
Mashonaland Central switched to Moyo claiming that their
decision was in
line with the unity accord.
Secretary for lands
in Mashonaland West, Themba Mliswa, and Chief Zvimba on
Novermber 27 met
Mugabe at the Chinhoyi University of Technology graduation
ceremony and
complained about the unprocedural way Chombo handled the
nomination of the
chairperson of the party.
Mugabe, the sources said, had since
confronted one of the politiburo members
seeking explanation.
Mutasa this
week confirmed that Manicaland, the province he hails from,
wanted the
Wednesday politburo meeting to deal with how Moyo was nominated
chairperson.
He said the province felt that the nomination was
not done properly because
many provinces had the misconception that the
party chairperson should hail
from the Matabeleland
region.
"There is no written law in the party which states that the
party chairman
should come from the Matabeleland provinces," Mutasa told the
state-controlled media. "Manicaland province therefore feels that the
nomination for the chairmanship was not done properly. On the nomination
date, some provinces altered and delayed their nominations and we feel that
this was unfair."
The politburo discussed the nomination of the
presidium but no final
decision was made. Deliberations on the matter are
expected to be held at
another politburo meeting next Wednesday. The meeting
will mark the
beginning of the five-day congress in the
capital.
In Masvingo the first nomination of Muchinguri as Zanu PF
vice-president
ahead of Joice Mujuru left the party split down the
middle.
War veterans and members of the Mujuru faction have resolved
that the
provincial executive led by Lovemore Matuke be axed for backing
Muchinguri.
At the weekend, party members led by politburo member
Celina Pote staged
demonstrations in Chiredzi calling for Matuke's executive
committee to
vacate office because it was allegedly fanning factionalism in
the party.
Muchinguri was not reachable for comment at the time of
going to press.
Constantine Chimakure
http://www.theindependent.co.zw/
Thursday, 03 December 2009
19:56
CONSTITUTIONAL and Parliamentary Affairs minister Eric Matinenga
yesterday
urged Zimbabweans to talk openly about the devolution of power to
provinces
saying there are “no scared cows” in the constitution-making
process.
However, he said devolution of power should not be mistaken for
secession
from the country.
“Issues of devolution of power cannot
be ignored and people should openly
discuss them when crafting the new
constitution,” Matinenga said.
“Devolution of power should not be
mistaken with secession.”
Matinenga was in Bulawayo to drum up
support for the constitution-making
process that has been stalled by
financial constraints.
He said the current 1979 constitution agreed
at the Lancaster House talks
should be replaced soon as it was a colonial
document.
The constitution has been amended 19 times since the
country’s Independence
in 1980 and critics say most of the changes have only
helped to entrench
President Robert Mugabe and Zanu PF’s stranglehold on
power.
Participants at the meeting said there was need for devolution
of power as
that empowers everyone.
“Devolution of power is long overdue
in Zimbabwe and it should not be taken
as a new phenomenon,” said one
participant It is pronounced worldwide. That
is the only way to empower
certain communities which for now are not
benefiting from natural
resources.”
Participants said the call for the devolution of power
should not be taken
as a Matabeleland issue because it would benefit every
province.
Several leaders from the region said it had lagged behind
in development yet
it is endowed with several natural
resources.
On whether the global political agreement timeframe for
the crafting of the
new constitution would be met, Matinenga said the
parliamentary select
constitutional committee is “performing
badly”.
“The three principals are also concerned on the delays and
they are
discussing the possibility of extending the timeframe without going
to
parliament,” said Matinenga.
Outreach programmes are set to
commence on January 4 but the 560 people
earmarked to collect information
were still to be trained, the minister
said.
Nqobile Bhebhe
http://www.theindependent.co.zw/
Thursday, 03 December 2009
19:20
YOUTH Development minister Saviour Kasukuwere this week admitted
that his
ministry violated public service job recruitment regulations when
it hired
13 000 youths just before last year's bloody presidential election
run-off
to work nationwide as ward officers. Appearing before parliament's
public
accounts committee on Monday, Kasukuwere said his ministry had
between May
and June 2008 employed 13 000 youths, not 10 277 as first
revealed by the
Comptroller and Auditor-General, Mildred Chiri, in her
report to the House
last month.
"He admitted before the committee
that the procedures (in hiring the youths)
were violated and the ministry
was regularising," a senior member of the
committee said.
The
regulations violated included the failure by the Public Service
Commission
to advertise for the posts and also failure to open personal
files for the
hired youths.
The ward officers did not have bank accounts to receive
their salaries,
rather the ministry used an imprest account from which money
could be paid
in advance to the youths.
"This was fraught with
potential fraud risks," the committee member said.
Officials from the
Finance ministry who also attended the meeting admitted
that they had erred
by failing to check the list of employees before
releasing funds for their
payment.
"The Public Service Commission was culpable for the ghost
workers because
they waived proper procedures and abdicated their
responsibility to the
Youth ministry, even to the extent of waiving O-Level
requirements," another
committee member said.
As reported by the
Zimbabwe Independent in October, Chiri in her report
exposed gross abuse of
state resources by top government officials and the
unlawful recruitment of
the youths.
Kasukuwere then accused the audit report of having many
inaccuracies and
said he would make an official response once the ministry's
accounting
officer was through with their own audit.
The
parliamentary committee is compiling a full report on the recruitment of
the
youths with remedial recommendations and this report would be tabled in
parliament before year-end.
Meanwhile, minister for Public
Service Professor Eliphas Mukonoweshuro
yesterday told the Independent that
results of a pilot human resource audit
in the civil service done in Harare,
Midlands and Chitungwiza was expected
to be out early next
week.
Mukonoweshuro said: "In those areas there was nothing out of
the ordinary.
There's nothing that they were able to evaluate that would
raise eyebrows."
He said delays in the compilation of the audit were
because of the training
of numerators that starts today and will continue
into the weekend, while
the main audit will start on
Monday.
Wongai Zhangazha
http://www.theindependent.co.zw/
Thursday, 03 December 2009
19:17
BOTSWANA a fortnight ago intercepted cigarettes worth US$3,1
million from
Zimbabwe that were to be smuggled to Asian countries such as
India and
China. The smugglers allegedly used undesignated entry points to
Botswana
and were confronted by the police at Tshesebe but managed to escape
leaving
the contraband behind.
Botswana police found 108 boxes
with 54 000 cartons of Derby cigarettes, 133
boxes containing 66 500 cartons
of Pacific cigarettes, and 128 boxes
containing 64 000 cartons of Sevilles
cigarettes.
Sources at Plumtree Border Post on Tuesday said smuggling
through the main
border post and several illegal entry points was rife as
"truck drivers are
well connected".
"Smuggling of cigarettes has
been on the increase since September but we
only hear about it when they are
arrested in Botswana" said the source.
Drivers would produce fake
declarations forms to immigration officials for
their smooth passage, said
the source.
"A worrying trend has developed in that smugglers only
come on certain days
when they know (immigration officials) who would be on
duty," the source
said. "Secret operations to identify culprits at the
border were once
conducted but no one was caught as information
leaked."
Matabeleland South police spokesperson Tafanana Dzirutwe
declined to comment
on the case saying it was a "diplomatic issue that can
be handled in Harare".
Botswana is fast becoming a prime route for a
cigarette smuggling syndicate
to Asian countries and South
Africa.
Finance minister Tendai Biti on Wednesday expressed concern
over high rates
of smuggling, mainly at Beitbridge Border
Post.
Adam Molai, executive chairman of Savanna Tobacco, the
manufacturer of
Pacific and Derby cigarettes, professed ignorance on the
smuggling of his
company's brands.
"Unfortunately I'm not aware
of this incident but I can comment on cigarette
smuggling in general," Molai
said in a written response to questions from
the Zimbabwe Independent.
"There is no product in the world, that I'm aware
of, that is smuggled as
much as cigarettes. In a quest to circumvent paying
high excise duties
prevailing in their countries of origin, various players
choose to attempt
to smuggle cigarettes to try and make super profits."
He said due to
resource constraints, his company was not represented in most
markets it
exports to and relied on third parties to distribute its
brands.
"Whilst we take stringent measures to verify the authenticity
of all
customers buying through extensive due diligence processes that also
include
the embassies of the countries whose citizens are buying from us, we
cannot
vouch for the veracity of the information we get from them," Molai
explained. "In addition to the due diligence process we undertake, we also
escort every truck carrying our brands to the point of exit to ensure that
our export documents are acquitted by Zimra given that cigarettes are an
excisable product. This also serves the purpose of ensuring that the goods
being exported have left the Zimbabwean territory as we remain liable for
local excise duties until our cigarettes have left Zimbabwe."
The
scourge of smuggling, he said, also included counterfeiting of
cigarettes.
"As recently as last year our Pacific brand, like all
other established
brands, fell victim to counterfeiters in South Africa,"
Molai said. "Should
you go to the informal markets in Botswana, Zambia and
South Africa you will
find large volumes of Madison, Kingsgate or Everest.
These cigarettes are
not exported by BAT Zimbabwe, but still end up on the
market in Botswana,
South Africa, and Zambia."
Nqobile Bhebhe
http://www.theindependent.co.zw/
Thursday, 03 December 2009 18:59
THE
commander of the Zimbabwe Defence Forces, Constantine Chiwenga, last
week
intervened in the war veterans association dispute and ordered the
cancellation of a congress that was planned by a faction of the ex-freedom
fighters. Information to hand shows that leaders of the two factions of the
Zimbabwe National Liberation War Veterans Association (ZNLWVA) were last
Friday summoned to Defence House, Harare, by Chiwenga and told to stop
wrangling.
Chiwenga intervened because war veterans are considered a
reserve army.
Zanu PF factionalism spilled into the war veterans association
with the two
main feuding camps in the party fighting to wrestle control of
the former
guerrillas considered an integral cog of Zanu PF's survival
machine.
Retired army general Solomon Mujuru and Defence minister Emmerson
Mnangagwa
lead separate factions fighting to succeed President Robert
Mugabe.
War veterans aligned to Mujuru are pushing for the removal of its
current
leadership chaired by Jabulani Sibanda and deputised by Joseph
Chinotimba.
Retired Colonel Basten Beta is tipped to take over from Sibanda,
while
former war veterans secretary-general Endy Mhlanga, Douglas Mahiya and
Moffat Marashwa are among those reportedly vying for top posts in the
ZNLWVA.
Beta's camp had last weekend called for a congress in Chinhoyi to
elect new
ZNLWVA leaders, but it was cancelled after the intervention of
Chiwenga.
"Chiwenga summoned us to his office last week and asked us not to
go ahead
with the congress," Mhlanga told the Zimbabwe Independent. "We
agreed that
by going ahead with the congress against the wish of the current
leadership,
it will be tantamount to running a parallel structure."
The
Beta camp is baying for Sibanda's ouster arguing that his leadership has
failed to represent war veterans and allowed the ex-freedom fighters to be
abused by politicians during the chaotic 2000 land reform programme, yet the
majority of them did not benefit.
War veterans who spoke to the
Independent this week said there were fissures
in the association because
former fighters were not happy with how they were
treated after leading farm
invasions countrywide.
The camp against Sibanda is also accusing the war
veterans' leadership of
clinging to power and failing to hold congresses in
almost a decade.
Mujuru was part of a committee that was appointed by Mugabe
in 2004 to
restructure the war veterans association.
The committee was
also made up of the late Vitalis Zvinavashe and Josiah
Tungamirai, and
Dumiso Dabengwa. The war veterans however said dislodging
Sibanda would be a
tall order because he enjoyed the backing of Mugabe.
"Sibanda will not be
easy to dislodge, he has the support of Mugabe and his
trump card is his
ability to organise war veterans at grassroots level and
those are the
people who count as they are in the majority compared to war
veterans in
urban areas," said one war veteran.
Sibanda last year led the so-called "one
million men march" and also
mobilised war veterans in the violent and
controversial 2008 presidential
runoff campaign to secure the presidency for
Mugabe.
Efforts to contact Sibanda and Chiwenga for comment were
fruitless.
Loughty Dube
http://www.theindependent.co.zw/
Thursday, 03 December 2009
18:55
FORMER Nkayi MP Abednico Bhebhe has instructed his lawyers to file
a High
Court application to compel President Robert Mugabe to call for
by-elections
in vacant constituencies throughout the country. Bhebhe was
expelled from
parliament alongside two other legislators after the MDC-M
wrote to the
House asking for their dismissal on allegations of being
sympathetic to
Prime Minister Morgan Tsvangirai-led formation of the
party.
The ex-lawmaker told the Zimbabwe Independent this week that
if his court
application succeeds, by-elections would be held in over 20
constituencies,
some of which have gone for over a year without
representatives in both the
House of Assembly and
Senate.
Thamsanqa Khumalo, the lawyer representing Bhebhe, confirmed
that he was
working on the case.
"I have instructions from my
client to pursue the matter on the holding of
by-elections, but I cannot
shed any details at the moment," Khumalo said.
Bhebhe said he would
seek a court order compelling Mugabe and the Zimbabwe
Electoral Commission
(ZEC) to call for the by-elections.
"Parliament has long notified
President Mugabe of the existing vacancies in
constituencies that need
by-elections but he has not acted on that," he
said. "Since he is the one
who is supposed to proclaim the by-elections,
this lawsuit will target him
and ZEC."
At law, Bhebhe argued, Mugabe should call for a by-election
within three
months of being notified of a vacancy.
Loughty
Dube
http://www.theindependent.co.zw/
Thursday, 03 December 2009
17:16
THE earth is parched but pregnant clouds hang, threatening to burst
into a
downpour anytime. In anticipation of the cloudburst the people run in
all
directions for shelter, screaming joyously for the relief the rain will
bring.
This is in Epworth, a sprawling settlement southeast of
Harare.
On a dusty football pitch is a group of middle-aged women
having a good time
playing soccer, ignoring the threat from the
sky.
It is not just an ordinary group of women, they are soccer
champions. They
may not be as prominent as soccer teams such as Gunners or
Dynamos whose
players don designer label jerseys and football boots, but
they have changed
a lot of people's lives - not only in their community but
nationwide.
The team - ARV Swallows named after antiretroviral
therapy - has so far won
three soccer competitions.
In the middle
of the pitch, an outstanding voice could be loudly heard
barking
instructions. The voice belongs to ARV Swallows captain nicknamed
China.
China, whose real name is Janet Mpalume, and her teammates
live positively
with HIV and Aids and have defied all odds by fighting the
stigma and
discrimination still associated with the pandemic through
football.
Mpalume (32) tested positive in 2007 after she fell sick for a long
time.
She said: "I accepted it, and I made my status public. Coming
out in the
open helped me to be where I am now. When I tested positive my
CD4 count was
131 but now it has been boosted to 469."
People
with a CD count below 350 are entitled to get the life-prolonging
ARVs.
She said she went public to fight the stigma and
discrimination associated
with HIV and Aids in her
community.
"Soon after announcing my status, some people refused to
share a cup I would
have used, or take anything I would have touched,"
Mpalume narrated to the
Zimbabwe Independent on Tuesday -World Aids Day. "It
was painful for me but
through football we have managed to tone it down in
Epworth, even now when I
am drinking a fizzy people rush to share it with
me."
She said the community initially did not take the ARV Swallows
seriously
because some of its players were deemed not fit to kick the ball
because of
illness.
The team, according to Mpalume, is sending a
strong message nationwide that
women should not see themselves as victims of
the HIV and Aids disease, but
champions in the fight against the
pandemic.
Issues of major concern raised during the World Aids Day
were the worsening
plight of children and women living and affected by HIV
and Aids.
According to the Zimbabwe Demographic and Health Survey
women constitute 54%
of people living with HIV and Aids in the country and
HIV prevalence is
higher among females aged 15-49 years (21,1%) than males
(14,5%).
A study recently conducted by the University of Zimbabwe put
HIV as the
number one cause of maternal deaths.
A report jointly
done by Unicef and the Central Statistical Office said 100
children below
the age of five years have been dying daily in the past five
years due to
preventable diseases of which HIV and Aids topped the list.
This was a 20%
increase from 1990.
Two thirds of infected children urgently
requiring ARVs were reportedly
failing to access treatment and there was
negligible coverage of HIV
treatment for children in the critical first two
years of life.
Over 75% of about one million orphaned and vulnerable
children in the
country were reportedly not receiving any form of formal
external support
from government, private, religious, charity or
community-based
organisations.
Gladys Chiwome-Mudondo, Women and
Aids Support Network (WASN) advocacy
manager, said there were biological and
social reasons for higher HIV
prevalence among
woman.
Chiwome-Mudondo said: "The first reason could be the
biological make up of a
woman in relation to the way organs are positioned
in a woman's body. If a
woman has unprotected sex with a man she is more
likely to be in more
contact with the fluids than the man.
"There
are reasons to do with sex and sexuality. Very few women can set
their own
decisions for example deciding to use the condom during
intercourse, there
is also very few prevention devices for women. The female
condom has proved
unpopular with women due to poor marketing. Other issues
have to do with
poverty which makes women more vulnerable."
She advised women not to
look down upon themselves but fight for their
rights so that they protect
themselves against HIV and Aids.
Founder of Women Empowerment Group
in Epworth Farai Makoni said there was no
need to apportion blame when one
tests positive, but map the way forward for
a healthy life and fight the
stigma.
His organisation has initiated a project to rehabilitate
commercial sex
workers in the neighbourhood.
Makoni said: "The
objective was to support and change the lives of women who
were doing sex
work by introducing to them other means of survival that they
could engage
in so that they change their behaviour. By networking them with
different
organisations we introduced them to small businesses like
cross-border
trading and opening their own market stalls. Some have even
gone into
preaching and peer education."
"Their campaigns have brought positive
results in the community and of late
we get fewer cases of gender violence
and sexual abuse being reported at our
offices. Some of the sad cases are of
fathers who are raping their children.
It is a major concern
here."
Unicef country representative Peter Salama this week said
women and children
remain the missing face of HIV and Aids response in the
country and called
for scaling up of the Prevention of Mother to Child
Transmission services
and HIV and Aids treatment for women and
children.
Salama said: "HIV and Aids is the number one cause of death
for pregnant
women and children in Zimbabwe. In an era of massive funding
and attention
for HIV treatment such a situation is
unacceptable.
"We can not talk of universal access when mothers and
children have little
access to basic services and continue being denied HIV
services."
But for the ARV Swallows playing football in the rain is
part of the fight.
Wongai Zhangazha
http://www.theindependent.co.zw/
Thursday, 03 December 2009
16:12
FORMER Zupco chief executive officer (CEO) Gwinyai Chikowore was
last year
sent on forced leave on allegations of financial impropriety
involving
nearly US$1 million which the bus company had generated between
February and
May. The Zupco board resolved to relieve Chikowore of his
duties, allegedly
for failing to deposit the money into the company’s bank
account, as well as
buying “sub-standard” bus accessories. Only US$210 000
was found in the
company’s account.
Chikowore was sent on leave
with full benefits until the expiry of his
contract last
December.
Analysts questioned the move to continue paying Chikowore
when there were
serious allegations against him. They argued that the
decision reflected
poor corporate governance at Zupco.
Last week
Happymore Mapara, the group CEO of Aico Africa Ltd, left the
company with a
golden handshake estimated to be US$1 million.
Mapara also left with
top-of-the-range vehicles as part of the settlement
after falling out with
key shareholders in the company after auditors —
KPMG –– produced a damning
report on the company’s operations.
Among the findings of the audit
were shocking underhand deals.
Many companies and parastatals have
over the years paid senior managers
golden handshakes even when they would
have committed fraud or acts of
misconduct.
Huge severance
packages are also rampant in South Africa where most
executives in
parastatals are rewarded for running down state institutions.
A case in
point is that of the South African Broadcasting Corporation (SABC)
ex-CEO
Dali Mpofu who was forced out of the company and later paid huge sums
of
money as a severance package.
This was despite the fact that during
Mpofu’s tenure, SABC suffered huge
losses and is currently looking for R1,2
billion for recapitalisation.
Questions have been asked why companies
give these golden handshakes. Are
minority shareholders consulted when such
decisions are reached? Why would
such companies opt to pay out such large
sums of money at the expense of
declaring a dividend to
shareholders?
Institute of Chartered Accountants in Zimbabwe (ICAZ)
CEO Sonny Mabheju said
paying out golden handshakes if not properly managed
could lead to
corruption.
“People can underperform knowing very
well that if they get dismissed, they
will still get a golden handshake,”
Mabheju said. “This prejudices
shareholders and other stakeholders in that
they can be stuck with a
non-performer who will cost a fortune to get rid
of.”
ICAZ is one of the major accounting bodies in the country and in
Africa.
“It is important in all these (golden handshakes) cases to
ensure that the
legal aspects are got right at the time of employment to
avoid further
problems at the point of termination,” Mabheju
said.
Economist Eric Bloch said the paying out of a golden handshake
depends on
whether or not the executive has a contractual entitlement, and
charges are
of substance.
“If the latter, no golden handshake
should be paid unless and until the
executive has been cleared of the
charges, except if contractual obligations
render it obligatory that payment
be made,” Bloch said.
Bloch said unless the golden handshake is of
such magnitude as to have a
material impact upon the company, there is no
obligation to consult
shareholders, the decision being in the purview of the
board of directors,
except if the recipient is a director, in which event it
is generally
mandatory that approval be sought of shareholders in general
meeting.
Some analysts said golden handshakes should be inline with
good corporate
governance.
Economist Brains Muchemwa said good
corporate governance requires that
payment only be made if contractually
prescribed or the charges of improper
conduct are unfounded or if the
recipient is a director. Payment should be
approved in terms of the charges
being laid down.
“Non-compliance with that constitutes corruption,”
Muchemwa said.
Mabeju said although good enterprise governance would
require a manager to
comply with corporate governance and make the company
achieve good business
governance it is necessary for the company to ensure
that these are included
in the employment contract for them to be used as a
basis for termination
without complying with the contract of
employment.
“Otherwise a golden handshake may need to be paid to save
the company from
further loss and avoid being sued by the employee for
breach of contract
unless negligence or gross incompetence can be proved,”
Mabeju said. “Where
an employee is guilty of improper conduct, the employer
has a right to
charge them of that misconduct. The employer needs not to
resort to paying
a golden handshake to get rid of the employee in the
circumstances unless
negligence or gross incompetence is
proved.”
Mabheju said there may be instances where the contract is
silent on
performance.
“It may be improper to terminate that
contract on performance-related
issues,” he said.
The Australian
government this year outlawed excessive “golden handshake”
payments amid
outrage over huge bonuses collected by company executives.
Under new
legislation, termination payouts would require shareholders’
approval, and
curbs on severance pay could be linked to job losses.
“Golden
handshakes, particularly when companies have not performed or where
workers
are being retrenched, are simply a means of rewarding failure and
are
absolutely unacceptable,” Australian treasurer Wayne Swan told the
Australian parliament in March. “So we are sending a very clear message to
corporate Australia — your actions are under scrutiny.”
Current
Australian laws allowed company directors to receive termination
payments of
up to seven times their total annual remuneration, which is
often much more
than base pay, before shareholder approval is required.
The
Australian government’s crackdown came amid outrage in the United States
after insurer AIG granted huge bonuses to employees who brought the giant
firm to the brink of collapse.
Swan called the payouts “frankly
sickening”.
“What we have seen for the past decade, under laws we
have inherited from
the former government, is the retirement gold watch
replaced by a truckload
of gold bullion,” said Nick Sherry, Australia’s
corporate governance
minister.
The move will extend the rules to
cover a wider range of executives and will
place criminal penalties on those
who flout the law. The government’s
productivity commission also held a
nine-month inquiry into executive
remuneration and
bonuses.
Paul Nyakazeya
http://www.theindependent.co.zw/
Thursday, 03 December 2009
18:47
FINANCE minister Tendai Biti has warned banks to increase lending
to
productive sectors or face the music in a clear sign that government has
lost patience with the financial sector. Presenting the 2010 National Budget
before parliament on Wednesday, Biti said following a surge in bank deposits
to $1 billion in October from $475,5 million in April, banks should shift
from a “conservative to aggressive” lending position to support key
economic drivers — agriculture, manufacturing and mining.
Of the
deposits, long-term deposits accounted for about US$15,8 million,
with the
balance in short-term deposits.
Biti’s warning comes a week after Reserve
Bank governor Gideon Gono last
Friday threatened foreign-owned banks with
unspecified action if they
continued with the current lending
pattern.
“However, given the short-term nature of deposits, financial
institutions
were forced to structure their lending in short-term credit
financing
largely comprising 90 days at effective annualised lending rates
ranging
from 8% to 16%, which remains too expensive compared to the regional
average
lending rate of 7%, Biti said.
The increase in deposits, the
minister said, should see the loan-to-deposit
ratio spiking to 80% from
current levels of 50%.
“Of the total lending, the distribution, manufacturing
and agriculture
sectors collectively received about 70,6% of total loans and
advances as at
30 October 2009… If persuasion does not succeed we will
employ the powers we
were given in terms of Section 31 of the Banking Act.
It is unacceptable and
it doesn’t encourage savings. We are imploring the
banking sector to listen
to the words of wisdom.”
Banks pay an interest
of between 0-3% on savings while the prime lending
rate is between
8-16%.
Referring to cash-rich foreign-owned banks that surpassed next year’s
US$12,5 minimum capital requirements for banks, Gono said the central bank
was “deeply concerned at the continued extreme aversion to lending by some
banks which are holding vast amounts of deposits without extending loans to
the productive sector of the economy”.
“These banks, mainly those with
foreign ownership have not taken heed of our
moral calls to the banking
sector for them to be more supportive of the
productive sectors of the
economy through lending,” Gono said.
Meanwhile Barclays bank recently pledged
to raise their lending commitments
by year end.
Bernard Mpofu
http://www.theindependent.co.zw/
Thursday, 03 December 2009 18:44
INDIGENOUS
banks, which showed a lot of potential and promise a few years
ago, now
survive on crumbs as the country's four big banks now account for
more than
half of business. Latest banking figures show that deposits were
at US$1,016
billion in October with the traditional big banks, Barclays,
CBZ, Stanbic
and Standard, accounting for 61%. This leaves the other 14
financial
institutions scrambling for about US$390 million.
This situation is
worsened by the fact that close to 90% of the funds are
transitory, lasting
less than 30 days within the coffers of the financial
institutions.
While the indigenous banks, the nouveaux riche at
the turn of the century,
have met the minimum capital requirements with CFX
Financial Services and
the Zimbabwe Allied Banking Group (ZABG) being the
odd institutions out,
their future continues to be
uncertain.
Analysts said while the bulk of business has since the
introduction of
multiple currencies been going to the big banks, it may be
premature to rule
out the indigenous financial institutions.
An
economic analyst said it was not clear where the indigenous banks were
heading but was quick to point out that the biggest bank, in terms of loans,
deposits and other banking activities and aspects was CBZ which is an
indigenous bank.
"We need to look at what is happening in other
countries and at the same
time ask the question why the big banks are
getting that business," said the
analyst. "If you look at Trust Bank (one of
the banks which faced
difficulties and was incorporated into ZABG), you
would realise that they
were very flexible and very innovative, coming up
with different products
which made them the dominant bank. This means that
indigenous banks still
have a future if they are innovative though the
playing field is tilted
against them."
This innovation saw Trust
Bank as well as all the other banks which were
established in the 90s taking
over business from the traditional banks which
were not
flexible.
At its peak, Trust Bank took banking to the people,
offering to collect
money from shops and industries instead of the
traditional banking procedure
where money is taken to the
banks.
Other innovative products included the Century Bank and OK
Zimbabwe
partnership, the link between the retail outlets under Meikles
namely
Barbours, TM Supermarket and Greatermans and Kingdom
Bank.
However, at the moment the indigenous banks are faced with
serious liquidity
problems and cannot come up with innovative products as
they are worried
about their own survival.
Another analyst with
serious interests in the banking sector who asked for
anonymity said it
would take time before the indigenous banks recaptured the
market share as
the banking public does not have confidence in them.
"It is not only
the big corporates which have moved from the small
indigenous banks but the
individuals as well mainly because they suffered in
2004 and 2005 when their
funds were locked in financial institutions," said
the
analyst.
"The issue of confidence would take time and it is also up
to how the banks
move to the market, not the other way round, which would
determine the time
it would take before they reclaim the market
share."
Banking sectors in other countries were changing with
non-banking activities
being incorporated, yet in Zimbabwe even those banks
with foreign parentage
had continued to do business in the usual way giving
room for those
innovative enough to take up the
space.
Leonard Makombe
http://www.theindependent.co.zw/
Thursday, 03 December 2009 18:41
TWO
important events took place in the country in the last seven days. First
was
the signing of the Bilateral Investment Promotion and Protection
Agreement
(Bippa) between South Africa and Zimbabwe on November 27. This was
followed
by the National Budget Statement that was presented on Wednesday.
The Bippa
was supposed to be a defining moment for foreign investors.
This has not
been the case as it is already entangled in controversy even
before
implementation.
In South Africa, for example, the signing of Bippa
did not generate as much
excitement as anticipated.
South African
farmers who lost land during reforms in Zimbabwe argue that
the agreement
ignored their property rights. But they failed to persuade a
South African
court to stop the signing of the agreement.
However, the court ordered
the South African government to protect the land
rights of its citizens in
Zimbabwe and also to respect the rulings of a
regional court on the same
issue.
Back home it does not seem that all parties in the inclusive
government
freely supported the signing of Bippa.
That such a
seemingly important event could only get low key publicity in
state media
could be a sign that the agreement did not get everyone's
blessings
particularly those long accused of disrespecting private property
rights. If
the Bippa could unsettle some people, especially those with a
penchant to
reap where they did not sow, then investors must view it as a
positive
concession provided that it is respected.
The country's problem in
the past was not the lack of bilateral investment
agreements, but rather the
wanton disregard of these contracts. Several
farmers were evicted from their
farms despite the fact that Bippas existed
between their countries and
Zimbabwe.
This week, for instance, the German embassy reportedly wrote to
the Zimbabwe
government requesting it to stop the takeover of a farm owned
by a German
national. An investment protection agreement exists between the
two
governments.
On the budget, it is encouraging to note that
Finance minister Tendai Biti
did not change course in proposing economic
policies that are friendly to
industry. When he presented his statement in
July the state media accused
him of being anti-poor.
Lately, the
minister has been vilified for failing to provide funds for the
2009/10
farming season. Considering all that pressure Biti could have easily
buckled
under and constructed a populist budget.
The budget was production
oriented although some of the targets are unlikely
to be met because of lack
of resources. Projected revenues of US$1,4 billion
look overly optimistic.
Currently, tax collections per month amount to US$90
million which
translates to US$1 080 million annually.
Equally the projected 40% growth
in mining for 2010 is unrealistic
considering that the sector needs huge
capital outlays for it to operate
optimally and the forecast tobacco crop of
200 million kilograms also looks
overly optimistic.
Considering
the existing consumption culture it remains to be seen how
investment and
savings can grow from 4% of gross domestic product to the
projected 14,3%.
As noted in the presentation 85% of the population is the
poor whom Biti
described as "the submerged and drowning".
Another 13% whom the minister
classified as the "floating or dog-paddling
middle class" is not much better
off than the poorest class. The income
streams for these groups are low and
most of it is spent on basic
commodities.
Very little, if any, is
saved and, better still, invested. Indirect taxes
such as Vat, excise and
customs duties are likely to remain the main sources
of fiscal revenue for
the next few years until industry fully recovers. In
2009 Vat and customs
duties contributed 65% of the cumulative revenues of
US$685 million. Direct
taxes on corporate and individuals contributed below
19%.
The
fiscal discipline that resulted from strict adherence to cash budgeting
is
commendable considering a past of uncontrolled spending. Cumulative
revenues to October amounted to US$685 million against expenses of US$640,8
million.
This implies a surplus of US$44,2million. The adverse impact
of restricted
spending on service delivery by government ministries and
departments cannot
be underscored but that has to be accepted as the
reality. There is no money
to spend. In the 2010 budget expenditure bids
amounted to US$12 billion
against possible maximum collections of
US$1,4billion. The discipline
employed in the current year has to be carried
into the future despite huge
expectations from government
units.
The Zimbabwe Stock Exchange is expected to become competitive
now that
transactions costs are to be lowered from 7,5% on both purchase and
sale to
3,21%. The average in the region is 3,5%. In addition, the decrease
of
withholding tax on dividends to 10% from 15% is expected to further
enhance
the attractiveness of the local bourse. The other positive measure
for the
market is the reduction of basic corporate tax from 30% to
25%.
Notwithstanding these few notable positives from the budget the
year ahead
is not expected to be smooth. The country still faces what Biti
termed
"humongous" problems chief among them a lack of funding. The global
political agreement should be fully implemented to restore confidence among
the providers of capital. Without that the budget projections will only be a
wish list.
Ranga Makwata
http://www.theindependent.co.zw/
Thursday, 03 December 2009 18:39
"NEW
stamps, stamp-impressed paper, cheque forms and bank notes" have pushed
Zimbabwe's all commodities exports to South Africa to a new high of US$200
million as government projects a decline in exports. Information made
available by the Central Statistical Office (CSO) has shown that commodities
exports to the country's major trading partner grew US$272 million in
October compared to US$57 million recorded in January. This was buoyed by
"paper" exports.
Nickel ores followed a distant second accounting for 10%
of exports made
during the period under review.
Nickel ores and
concentrates; semi manufactured gold; tobacco and monetary
gold were also
among the top foreign currency earners in the same month.
Granite, air pumps,
table linen of cotton, electric conductors and chewing
gum among other
commodities were the least contributors, accounting for
0,01% of the
exports.
Imports according to the CSO figures dropped to US$217 million from
US$302
million recorded at the beginning of the year. Petroleum oils; "other
personal effects"; vehicles and maize seed were the major commodities
imported from South Africa.
Trade between Zimbabwe and Zambia according
to CSO figures shifted in favour
of the latter as shown by declining exports
and an increase in imports from
the northern neighbour. Zimbabwe imported
commodities worth US$10,7 million
from Zambia compared to US$6 million in
imports.
Exports to Britain jumped from over US$2million in January to
US$13,8
million in October after Mozambique. Zimbabwe according to official
statistics continued to be a net importer of Chinese products as reflected
by US$6 million exports while exports accounted for US$500 million in
October.
Finance minister Tendai Biti told parliament during the budget
presentation
this week projected a slump in trade.
"The country's exports
shipments over the period January to October 2009 are
expected to decline by
17,7% from US$1,2 billion to US$1 billion, primarily
reflecting a decline in
agricultural exports," Biti said.
"Imports are expected to decline by 15%
from US$1,5 billion to US$1,3
billion over the same period." After admitting
that the manufacturing sector
would fail to meet the 60% capacity growth
projected in the Short Term
Emergency Recovery Plan, Zimbabwe will continue
to be a major importer of
food, electricity and fuels, chemicals,
manufactured goods and machinery.
Independent economic and planning
consultant, Daniel Ndlela said government
should restore the country's
dilapidated infrastructure and uphold property
rights to promote trade. On
whether Zimbabwe's return to the Commonwealth
would boost trade between
Harare and London, he said: "Surely joining the
Commonwealth has nothing to
do with increasing trade volumes at least
directly since Zimbabwe was not on
trade sanctions with the UK, the EU or
the rest of the world. A quick
addition of the figures shows that in the
recent months - August, September
and October -Zimbabwe has exported more to
the UK than we have imported from
there, which is a good sign."
Bernard Mpofu
http://www.theindependent.co.zw/
Thursday, 03 December 2009
18:35
FINANCE minister Tendai Biti has proposed a five-basis point rise
in mining
royalties for precious minerals as government attempts to boost
revenue
generated by the sector.
This comes after the Chamber of
Mines of Zimbabwe last month challenged
initial plans by the ministry of
Economic Planning and Investment Promotion
to raise the quantum of royalties
up to 10%.
Presenting the 2010 National budget this week, the
treasury minister said he
made the decision after considering buoyant prices
of precious minerals on
the world market.
Currently, royalties on
precious metals, that is, gold and platinum, are
levied at a rate of 3% of
the gross market value. "The international price
of gold increased from an
average of US$800 per ounce in November 2008 to
about US$1 280 in November
2009, whilst, the price of platinum moved from
US$870 per ounce to about
US$1 450 per ounce during the same period," Biti
said.
"In order
for the nation to benefit from the exploitation of these
non-renewable
natural resources, I propose to increase the rate of royalties
on precious
metals from 3% to 3.5% with effect from January 1 2010."
He added
that with effect from next year the Zimbabwe Revenue Authority
would replace
the Minerals Marketing Corporation of Zimbabwe in collecting
the levies.
This would be the second change in the last 10 years since
Fidelity
Refineries was suspended from collecting the revenue in
2004.
According to a draft Medium-Term Plan (2010-2015) - a policy
document that
is expected to succeed the Short Term Emergency Recovery
Programme (which
expires this December - government planned a ten-fold
increase in royalties
charged on foreign-owned mining companies exploring
base metals. Proceeds of
the mining levies according to the draft plan would
be channelled towards a
yet to be established sovereign fund to hedge the
sector from exploration of
the finite mineral
resources.
Bernard Mpofu
http://www.theindependent.co.zw/
Thursday, 03 December 2009
17:24
ZIMBABWE’S total debt including arrears was at US$5,4 billion as at
October
31 2009 Finance Minister Tendai Biti said on
Wednesday.
Cabinent has been deeply divided over the debt and arrears
clearance
strategy proposals currently under government consideration, as
Zimbabwe
battles to extricate itself from a huge debt trap.
“The
country’s total debt including arrears as at October 31 2009 was
US$5,417
billion. Of this amount external payment arrears were US$3,839
billion,”
Biti said when presenting the 2010 National Budget
“Government arrears alone
are US$2,34 billion whilst parastatals accounted
for US$895 million, Reserve
Bank, US$568,8 million and private sector
US$34,4 million,” he said.
The
division between Zanu PF and Movement for Democratic Change ministers
has
left Biti’s debt-relief proposal facing stiff resistance from his
colleagues
who claim it is “ill-advised”.
Biti had produced a comprehensive document on
debt and arrears clearance
which is under government discussion.
The
proposal sparked a fierce row among cabinet ministers. The situation is
fuelled by clashes over the International Monetary Fund (IMF)’s US$510
million liquidity bailout for the country.
Biti and Reserve Bank governor
Gideon Gono as well as ministers are fighting
over the control and
utilisation of the money.
Zimbabwe currently needs up to US$10 billion for
economic recovery. It is
officially estimated the country needs US$45
billion for the next 10 years
to recover to 1997 gross domestic product
(GDP) levels.
In his document, Biti had proposed four debt and arrears
clearance options
which entail using internal revenue inflows,
resource-based debt
restructuring, Paris Club debt-rescheduling, and the
Heavily Indebted Poor
Country Initiative (HIPC) for consideration by
cabinet. He however suggested
that HIPC was the best option because the
other options did not offer
Zimbabwe a “holistic and viable approach to its
debt and arrears problem”.
Biti has been proposing that Zimbabwe should adopt
HIPC because it has some
advantages which could reduce the country’s debt
burden by 90% after full
delivery of debt relief.
He is on record saying
it is based on the experiences of 35 countries for
which packages have
already been approved and debt servicing declined by
2,5% of GDP between
1999 and 2007.
Biti argues debt relief would reduce constraints on economic
growth and
poverty imposed by the debt-servicing burden.
He said before
adopting HIPC, eligible countries were on average spending
slightly more on
debt than on health, education and other social services.
Biti further says
the huge debt overhang is increasing Zimbabwe’s
credit-risk profile while
undermining investment and growth.
The IMF will this month review Zimbabwe’s
overdue debt as it emerged that
the country is failing to cooperate on
payments to the global lender.
Zimbabwe owes the IMF special drawing rights
89 million (about US$139
million) from the Poverty Reduction and Growth
Facility Exogenous Shock
Facility (PRGF-ESF) Trust.
The country was
recently allocated US$510 million by the IMF as part of a
bail out package
for all the institution’s members in response to the global
financial
crisis.
But Biti and Reserve Bank governor, Gideon Gono have differed on how
the
money should be deployed. Biti says if used recklessly the money would
worsen Zimbabwe’s foreign debt.
According to a recent IMF paper — Review
of the Fund’s Strategy on Overdue
Financial Obligations — three countries
namely Zimbabwe, Somalia and Sudan
remained in protracted arrears to the
fund as at the end of June 2009.
Protracted arrears are those that have been
outstanding for six months or
more.
Two members, Somalia and Sudan, have
accumulated arrears dating back to the
mid-1980s and account for 18% and 75%
of total arrears to the fund
respectively.
Zimbabwe, which has been in
arrears to the PRGF-ESF Trust since February
2001, accounts for the
remaining 7 %.
Paul Nyakazeya
http://www.theindependent.co.zw/
Thursday, 03 December 2009 17:05
ZIMBABWE’S
drinkers will not pop and gulp as much as they would have wanted
to in the
new year following government plans to raise excise duty on
spirits. Finance
minister Tendai Biti on Wednesday doubled the “sin duty”
charged on heavy
alcoholic beverages as government battles to raise revenue
in the coming
year.
But it will not be entirely gloom and doom for boozing
Zimbabweans this
season. Biti also granted a US$400 tax-free bonus, a
gesture analysts say
will fatten workers pockets ahead of the
season.
“Honourable members would recall that during the Mid-Term
Fiscal Policy
Review I announced an upward review of excise duty on spirits
from 15% to
20%,” Biti told parliament.
He added:
“Notwithstanding the upward review, the rate of excise duty
remains
relatively low compared to levels obtaining in the region. I,
therefore,
propose to increase the rate of excise duty on spirits from 20%
to 40%, with
effect from January 1 2010. Furthermore, measures to strengthen
anti-smuggling will be put in place.” The proposed increase on excise duty
will double prices of spirits currently as low as $3 for a 750ml
bottle.
After experiencing a not-so merry festive season last year
due to
hyperinflation and a liquidity crisis, prices will be determining
factor in
choosing the plethora of spirits currently stocked in supermarkets
and
bottle stores across the country.
“Excise duty collections
amounted to US$44,6 million against a target of
US$42, 6 million. Major
contributors to this revenue head include fuel,
beer, wines and spirits
which accounted for US$37,5 million,” Biti added.
“The bulk of excise
duty collection was contributed from fuel and growth in
volumes of beer, as
a result of increased capacity utilisation from 25% in
January to about 75%
by September 2009 for these sub-sectors.”
Already retailers and
departmental stores are singing jingle bells in
anticipation of more
sales.
Apart from introducing sin duty on booze, Biti also had
pleasant news for
the economy projecting Zimbabwe’s economy would grow by 7%
next year.
Bernard Mpofu/Chris Muronzi
http://www.theindependent.co.zw/
Thursday, 03 December 2009
17:03
GROWTH projections of 10% in agriculture next year and the
subsequent season
can only be achieved if resources are made available on
time, players in the
sector have said in response to the 2010 National
Budget proposals announced
on Wednesday by Finance minister Tendai Biti.
Agriculture is expected to
grow by 10% next year after a cumulative decline
of 85,7% since 2002.
Budget allocations of US$55 million for the 2009/2010
agricultural season
would not be enough to revive the sector thus more
resources should be made
available for the 2010/2011 season which may become
the defining season.
Director of the Zimbabwe Farmers' Union, Aaron Zacharia,
said apart from
making more funds available, it was also imperative that
there were policy
changes to encourage investment in the sector.
"It is
not just the money that we should be looking at but policies as well.
We
want policies which would lead to the development and revival of the
sector," said Zacharia. "We want policies which would give value to the land
so that the farmers would be able to borrow from the financial institutions
against the value of their pieces of land."
It was also important that
the budget highlight how compensation for the
former farm owners was going
to be made as a way of concluding the land
reform issue, said
Zacharia.
"We also need to note that any economic revival would be
underpinned by a
resuscitation of agriculture and at least 10% of the budget
should go to
agriculture if we are to achieve the projected growth levels in
gross
domestic product," said Zacharia. "However, if we allocate only 5% of
a very
small budget to agriculture, then we have to work very hard to
achieve the
growth levels."
At least US$847,6 million is required to fund
agriculture next season with
the bulk of the amount going towards tobacco,
but this is still below the
US$1 billion plus which is required to have a
successful farming season.
Area under tobacco during the 2010/2011 season is
expected to grow to 75 000
hectare with a 200 million kg yield up from the
65 million kg this season.
This, Biti said, would require up to US$600
million.
Small-scale farmers, who used to contribute close to 70% of grain in
the
country, would get support to the tune of US$95,3 million while at least
one
million vulnerable rural households would get maize seed, compound
fertiliser as well as ammonium nitrate.
Past vice-president of the
Zimbabwe Farmers' Union Edward Raradza said the
budget allocations were
welcome if followed.
"We are happy with the allocation but they should be
fully implemented if we
are to meet the targets which have been set,"
Raradza said. "We would be
very comfortable if resources were made available
on time as this would
enable farmers to plan. We hope that seed, fertiliser
and chemicals are
available by October for the next season."
Extension
services would also be revived with the procurement of vehicles,
motorcycles
and bicycles for use by workers.
Generally, the agriculture sector is faced
with serious problems with
farmers holding on to their produce, citing
uncompetitive prices against a
background of very high productive
costs.
This presents a paradoxical situation as the buyers are not prepared
to pay
more than US$170 per tonne of maize, for example,
yet farmers
would incur losses if they sold their crops for anything less
than US$250
per tonne.
High productive costs mean locally-produced crops are not
competitive, not
only within the country, but in the
region.
Leonard Makombe
http://www.theindependent.co.zw/
Thursday, 03 December 2009
17:10
"IF it was all up to me, Jomic's power would be increased by 200%,"
said
MDC-T provincial chairman Morgan Femai.
He was taking up a theme
raised by a participant at the first interparty
provincial leadership
conference convened by the Joint Monitoring and
Implementation Committee
(Jomic) in Harare on November 27 2009.
Other party
representatives to the conference echoed the same view.
They wondered why
Jomic, given its centrality to the subsistence of the
inclusive government,
did not have a legal instrument conferring on it power
to enforce its
decisions or at least to compel the parties to the GPA to
adhere to its
provisions.
To me the comments showed not only growing awareness of
the limitations
imposed on Jomic but also frustration with the slow pace of
transition by
the coalition government from bickering over power-sharing to
substantive
policy issues.
As one participant observed, while people
talked glibly about low rate of
inflation, price stability and the abundance
of goods in the shops, very
little of this made sense to ordinary people who
were unemployed and could
not afford the goods. It's a recipe for
chaos.
The conference was itself historic in several ways. For the
first time Jomic
managed to bring to one venue at least 30 delegates each
from the three
political parties to the global political agreement
(GPA).
The provincial chairpersons sat shoulder to shoulder at the high
table while
the delegates competed to ask questions after presentations by
Jomic members
Innocent Chagonda, Frank Chamunorwa and Oppah
Muchinguri.
The participants told their leaders point-blank that it
was politicians who
were responsible for much of the violence plaguing
society.
There were however differences over whether the process of
national healing
should start at the top and cascade to grassroots
structures or the reverse.
It was evident though that there is still a lot
of tension in the
communities. There is uncertainty about whether what is
needed is mere
restorative or retributive justice for those still smarting
from the
violence they suffered ahead of last year's
elections.
One could sense latent anger in the conference if it
appeared that one
political party was being allowed to ask more questions
than others. For
some strange reasons, the delegates chose to sit as close
as possible to
fellow comrades so that they could "caucus" about issues
being raised by
their "opponents".
At some point there was
grumbling when one of the delegates used the word
"comrades". I don't know
how Zanu PF has managed to appropriate that word to
itself. I remember
Winston Churchill using it in one of his great speeches
during the Second
World War to refer to Britain's allies. The row died down
when delegates
were reminded that they also use the word at their party
meetings.
There was unanimity on the need to form interparty
liaison committees to
spread the gospel of peace and unity. All the parties
fully endorsed the
GPA.
What I however found sad was that for the
majority of the delegates the
so-called outstanding grievances were what
they read in the newspapers and
none of the issues which affect them on a
daily basis such as power outages,
water shortage, unemployment and a
shortage of drugs in hospitals, which to
me more closely reflect the slow
pace of economic turnaround envisaged under
Article 3 of the
GPA.
Instead, everyone was an expert on pirate radio stations while
the other
camps had enough ammunition to explain the reasons for their
existence!
One could also not miss the usual confusion about
democracy when it comes to
dealing with biased local newspapers and TV and
radio stations. There is a
meeting of the minds of all the parties. Editors
are the problem. This is
evident from the way everyone thinks the only way
to "correct" the problem
is "talk" to them.
In a democracy you
don't talk to editors. It is the politicians who must
convey the right or
correct message. You cannot fight for democracy by
muzzling the media unless
they go out of their way to fan or incite
violence, hate speech or racial or
ethnic hatred.
The real tragedy we have in Zimbabwe is that media
themselves have abandoned
ethical principles to align themselves with
political parties. Thus one
political party sees nothing wrong with abusive
language or racist speech in
the papers so long as it is directed at their
opponents or rivals and get
furious when the same language is used against
them in some other paper.
They want that paper shut down or to have the
editor "talked" to, an
expression which has very sinister connotations for
freedom of expression.
Nothing better illustrated the hostage
mentality between Zanu PF and MDC-T
than the issue of agricultural inputs
and the land audit on the one hand,
and how to use the US$510 million from
the World Bank on the other. Suddenly
everyone put on their true
colours.
Zanu PF delegates accused Finance minister Tendai Biti of trying
to sabotage
economic recovery by refusing to release money for agricultural
inputs.
MDC-T delegates felt excluded from farming and seemed to believe the
money
had been released to their party, not the coalition
government.
So why should their party finance agriculture before a land
audit which must
yield them free farms? Some kind of grievance, some kind
of war!
Talking about colours, I believe it did help a lot that the
parties did not
bring with them party regalia to the conference. There were
also loud calls
for delegates not to chant party slogans. It was even
suggested that party
slogans calling for the death or killing of political
rivals were
anachronistic and in desperate need for "change", a word the MDC
formations
have appropriated as stealthily as the open
palm.
Finally, it was time for a hearty meal and the spirit of
camaraderie was
revived. Political foes who before the conference were
wagging fingers at
each other were hugging and holding hands like homeboy
rivals who have just
met in a foreign country. It was a sight well worth to
behold. We hope it
holds. We have more such meetings lined up.
To
those who insist that Jomic should have "teeth" our prayer is really for
Zimbabweans to have more brains than teeth. Too "much teeth" often disposes
one to violence.
Joram Nyathi is Jomic communications
manager.
By Joram Nyathi
http://www.theindependent.co.zw/
Thursday, 03 December 2009 16:21
SO,
there are now 27 items to be adjudicated by the South African mediators,
as
distinct from the eight that dominated the agenda a few weeks ago in
Mozambique. Muckraker doesn't want to get bogged down here in all these
issues. Suffice it to say many could be dealt with on the basis of what was
agreed in last year's Global Political Agreement and in the January Sadc
summit in Pretoria.
The Herald's informants are trying to make a
distinction between issues and
"real issues". The MDC-T, for one, it says,
has refused to call for the
lifting of sanctions and done nothing about
"illegal broadcasts of hate
messages into Zimbabwe from outside the
country".
Meanwhile, the MDC-T's land-audit proposal is seen as an attempt to
reverse
land reform.
Zanu PF is evidently terrified of anything that
would expose the greedy
chefs who have acquired more than one farm for
themselves. But there will be
no lifting of sanctions until Zanu PF stops
behaving badly. No Western
country will support a rogue regime whose members
help themselves to other
people's property under the guise of addressing
historical anomalies.
The whole point of Sadc's intervention was to
prevent a gang of political
barons in Zimbabwe from blocking reform and
creating a regional crisis.
Members of the gang are among the chief land
grabbers and have invented the
fiction that "pirate" radio stations are
pumping "hate messages" into
Zimbabwe.
It doesn't say what these
so-called "hate messages" are. Only that the MDC-T
is supplying these
stations with "false data to discredit President Mugabe
and his
party".
Zanu PF doesn't need the MDC-T to do that.
In reality these
stations are simply providing the public with the facts
they need to make up
their own minds on what is happening in the country. In
other words
providing a variety of viewpoints.
The GPA is quite clear on this. Once ZBC
starts offering an impartial and
professional service, there will be no need
for external stations. But the
minister cannot bring himself to make a
public statement that journalists
working for these stations will not be
subject to reprisals if and when they
return home. Nor does he or his
underlings seem able to insist on improved
standards at the national
broadcaster.
The South African mediators are said to be unimpressed with the
mushrooming
of new issues. The answer is simple. Stick with what was agreed
in the first
place. Or is that asking too much?
We were interested to
note the Mail & Guardian's comments on the appointment
of Menzi Simelane
as South African Attorney-General (National Director of
Public
Prosecutions). This is a "thoroughly unsuitable" appointment, the
paper
said, given Simelane's role in the demise of the Scorpions, his bid to
frustrate the arms deal investigations, and disastrous interference in the
Jackie Selebi investigation.
The M&G referred to President Zuma's
"curious choice" of the prosecutions
chief in the light of former
parliamentary Speaker Frene Ginwala's "damning
findings about Simelane's
dishonesty and lack of integrity".
Ginwala chaired an enquiry into Simelane's
predecessor Vusi Pikoli's fitness
for office following his suspension by
Thabo Mbeki.
Pikoli came out of Ginwala's inquiry unscathed, but others
weren't so lucky.
The Public Service Commission had reportedly recommended
that the Justice
minister take disciplinary action against Simelane. But it
later changed its
mind and instead he was appointed to high
office!
It is good to see our friends in the South African media
exercising such
robust vigilance over the appointment of unsuitable and
partisan individuals
to the top office in the prosecution
service.
Ginwala slammed Simelane in her final report, calling him arrogant
and
condescending. She labelled his evidence before her inquiry as
"contradictory and without basis in fact or in law" and blamed him for
suppressing the disclosure of information, according to the M&G last
week.
Constitutional expert Prof Pierre de Vos, the M&G notes, wrote in
his blog
that the NDPP must be a "fit and proper person" with due regard to
his
"experience, conscientiousness and integrity to be entrusted with the
responsibilities of the office concerned".
"Unfortunately we know from
the report of the Ginwala inquiry that Simelane
is not honest. Neither is he
reliable, nor does he possess the necessary
truthfulness and uprightness
required by the (NPA) Act," De Vos said.
When a country gets it wrong in
appointing its chief law officers, we would
add, it leaves the system open
to manipulation and partisan interference.
That in turn subverts public
respect for the office which is crucial to its
proper functioning. The South
Africans will learn the hard way!
Simelane, by the way, went to Prince Edward
School.
It was inevitable perhaps that the cowards who write for the
Herald's
opinion columns should take pot shots at two genuine heroes of
Zimbabwe's
struggle for democracy, Jenni Williams and Magodonga
Mahlangu.
These two Woza women were honoured in a ceremony at the White House
for
their courage and determination in exercising their right to demonstrate
against injustice and tyranny.
President Barack Obama said the women of
Woza had shown that they can
"undermine their oppressors' power with their
own power, that they can sap a
dictator's strength with their own".
Then
we saw in the usual places occupied by the regime's spokesmen
statements
that the duo didn't really represent the women of Zimbabwe.
"Mahlangu and
Williams, like the poor women they pay to march, are black
faces to the
white man's agenda," we were told by the all-too-familiar
letter-writers'
club in Munhumutapa Building and other such spooky hideouts.
This disgraceful
case of sour grapes, published last Friday, seeks to
denigrate two
incredibly brave women who have stood up for human rights and
been treated
abominably by a vicious state. And if their courage inspires
nothing but
spitting indignation from the cowards in our midst, let them
spit and rant.
It simply exposes them as the sore losers they are.
The visit of the
World Cup to Harare last Thursday evening provided some
amusing moments for
those present or watching on TV. Zanu PF turned it into
a party-political
rally, waking up the poor old chiefs and requiring them to
attend. The First
Family was also present at what was clearly seen as a
soccer highlight even
though Zimbabwe had not actually scored.
Many ministers also thought it would
be a good idea to attend although David
Coltart had difficulty getting
himself noticed. Finally, in desperation, he
thrust out his hand as the
president walked past to make his speech. That
did the trick. He even
managed to exchange a couple of words as the
president moved on,
smiling.
Walter Mzembi certainly got noticed with his funny little joke
about the
Victoria Falls. He was often asked which country the Falls
belonged to, he
said. It was like a beautiful woman asleep, he suggested.
Her backside was
in Zambia and her front in Zimbabwe.
Well, this was
clearly the funniest joke the president had ever heard. He
threw back his
head and roared uncontrollably with laughter. Grace was
equally
amused.
At risk of sounding prudish, Muckraker thought the joke a tad
off-colour and
that Mzembi was at risk telling it, especially with the first
kids present.
But it went down so well nobody could complain. In fact Mzembi
could well
find himself promoted in the next cabinet reshuffle, especially
after all
that praise-singing he managed to squeeze in!
We hope Happison
Muchechetere was listening to the national anthem. It was
totally ruined by
ZTV's poor sound control. In fact the technical side of
the broadcast was a
disaster. And this came after Muchechetere's indignant
claims of
professionalism recently in response to criticism from the MDC-T.
Please
Happison, it is now 30 years you have been getting technical help
from the
Germans, the Iranians and everybody else. Can't you do a simple
outside
broadcast? What we need is less Zanu PF propaganda and more
elementary
journalism and broadcasting skills.
Last Friday the Herald carried a
headline entitled "PSC to weed out parallel
appointees". It was based on a
statement by PSC chairman Dr Mariyawanda
Nzuwah. It was clearly aimed at the
MDC-T.
Shouldn't the heading have read "PSC to weed out partisan,
unprofessional
appointees"? That includes those advertising their
credentials in the
Herald.
There are so many of them this may take a
while. One of these unprofessional
appointees was telling Herald readers
that "ministers, as political
figureheads, had no authority to recruit their
own staff".
It hadn't occurred to this ubiquitous spokesman that the MDC-T
was only
forced to cast its net wider because the existing pool of senior
officials
was so badly contaminated with people like him!
http://www.theindependent.co.zw/
Thursday, 03 December 2009 16:17
LAST
week, with intense governmental and state-media acclaim, and in the
presence
of many of Zimbabwe's and South Africa's business leaders, a
long-awaited
Bilateral Investment Promotion and Protection Agreement
(Bippa) was entered
into between Zimbabwe and South Africa. Spokesmen for
both governments
heralded the conclusion of the Bippa as a stupendous action
which would
reinforce the close ties between the two countries, would be a
major
catalyst for Zimbabwean economic recovery, and especially so as it
would
motivate very considerable South African investment into Zimbabwe.
It
is indisputable that investment is a key element of a substantive
recovery
of Zimbabwe's long distressed and greatly oppressed economy.
Sadly,
however the governments of Zimbabwe and South Africa are deluding
themselves, and are striving to delude others, by their contentions that the
execution by them of last week's Bippa will considerably facilitate
investment into Zimbabwe.
The hard and tragic fact is that most
potential investors from South Africa
consider the Bippa to be a non-event,
and that it will accord no protection
to any investments they would make in
Zimbabwe.
The potential investors are fully aware that, progressively
over the nearly
30 years of Zimbabwean independence, many Bippas have been
entered, in the
main (but not exclusively) with numerous countries within
the European
Union.
But they are aware that those Bippas did
absolutely nothing to protect the
nationals of those countries from the
expropriation of their farms in
Zimbabwe in which they had extensively
invested over many years.
Not only were they not given their lawful
entitlement of Bippa protection,
but they suffered the loss of their farms,
their crops, their homes, their
moveables, and many other assets, without
any compensation from Zimbabwe, to
which they were lawfully
entitled.
Moreover, in many cases, the expropriation of their investments
was effected
with brutal force and violence, in contemptuous disregard for
the
fundamental principles of law and order, justice and international norms
of
human rights.
Zimbabwe has demonstrated such disdain for its
Bippa obligations that the
authorities have not only stood idly by whilst
those obligations were being
blatantly disregarded but, in innumerable
instances, have been part and
parcel to the violent theft of land and all
the assets thereon.
Zimbabwe has sought to justify such theft by
recurrent specious allegations
that the actions were naught but reversal of
prior theft of the land by
evil, self-enriching colonialists, and by
legislating state acquisition,
redistribution and resettlement of the
lands.
Even if there was substance to those governmental contentions
and
allegations, government apparently espouses the concept that "two wrongs
make a right". In trying to substantiate that philosophy, it steadfastly
denies any compensatory obligations, categorically stating that any
compensatory obligations are those of the former colonial power.
It
does so without distinguishing between those lands which have been
occupied
and utilised in the pre-colonial era, and those that were wholly
unoccupied
and devoiAd of usage.
Zimbabwe's government pursues its land policies
with flagrant scorn not only
for the Bippas entered into by it, but also
with arrogant unconcern for
determinations by regional and international
courts.
Rulings by those courts that the lands be restored to those
ousted from
them, or that full and just compensation be paid, have been
studiously
ignored by the government, save for spurious statements
dismissing the
authority of the courts.
In the main, government has
stubbornly even failed to acknowledge such court
determinations but, when
rarely commenting thereon, have challenged the
validity of the rulings on
grounds that the expropriation of the lands was
merely a righting of a
previous wrong, and was wholly in accord with
prevailing
law.
Concurrently, it has denied that the courts have any
jurisdiction to hear
the cases, let alone determine upon them,
notwithstanding Zimbabwe's
obligations to recognise jurisdiction in terms of
its United Nations and
Sadc memberships.
Therefore, the general
reaction of South Africa's investor community is that
the newly-executed
Bippa will, in practice, yield no investment protection.
Admittedly, South
Africa's Industry minister, Rob Davies, who attended the
Bippa signing
ceremony, contended otherwise, and highlighted imminent
investment funding
into Zimbabwe by the Industrial Development Corporation
of South Africa, and
by the Development Bank of Southern Africa (although,
as South African
governmentally influenced bodies, such investment is not
reflective of
private sector investor perceptions).
The reservations and concerns
of potential South African investors are
further intensified by the
recurrent Zimbabwean government statements on
intended indigenisation and
economic empowerment policies. Whilst, almost
without exception, foreign
investors are supportive of the principles of
indigenisation and economic
empowerment, they are not prepared to be reduced
to the roles of junior
partners in investments funded and developed by them.
Recent
statements that not less than 51% of all foreign-owned companies must
be
owned by indigenous Zimbabweans give no confidence to potential investors
that Zimbabwe is a desirable investment destination. Nor do reported
statements by Zimbabwe's Economic Planning and Development minister, by its
Finance minister, and by its Mines minister, of intended massive escalations
in rates of mining royalties, encourage investment into Zimbabwe's mining
sector, despite its vast potential.
Similarly, the very one-sided
Zimbabwean labour legislation, and the extreme
confrontational nature of
much of Zimbabwe's trade unions and labour force,
does not constitute an
incentive to invest in Zimbabwe. Investment security
is grievously in
jeopardy when there is a massive divide between employers
and labour, when
there are recurrent threats of industrial action by labour,
and when
productivity is markedly jeopardised.
If the Zimbabwean government
wishes to attract South African (and other)
investment, which it should do
if it has any real concern for the wellbeing
of Zimbabwe and its people, it
needs belatedly to honour all its Bippas.
It needs to comply with the
rulings of regional and international courts, to
make good on its
innumerable Bippa defaults, and demonstrate its intent to
fulfil any and all
obligations that it has under the international
agreements to which it is a
party.
It needs to reform and modify its programmes of land acquisition,
redistribution and resettlement to those as are just and equitable, and
productive. It needs to demonstrate, beyond any doubt whatsoever,
compliance with, and enforcement of, law and order and respect for property
and for human rights.
If it does so, South African investment
into Zimbabwe will be very
substantial, and will contribute greatly to
Zimbabwean economic success. If
it does not, then last week's Bippa signing
will prove to be an investment
non-event, for investment inflows from South
Africa, and elsewhere, will be
minimal.
http://www.theindependent.co.zw/
Thursday, 03 December 2009
16:48
MOST sub-Saharan African countries’ budgets are donor funded. This
is not to
say that these countries are poor. The tragedy is what Professor
Paul
Collier calls the “resource curse”.
The resource curse is
occasioned by the failure of governments to benefit
from the revenue
dividends of their resources or wealth — the failure to
plan during economic
booms for worst cases in the near future.
In many ways the
2010 National Budget bemoans this resource curse for
Zimbabwe.
The
Budget statement reveals clearly that Zimbabwe’s revenues have been
hamstrung by the mining sector which has not been contributing to the
national fiscus.
Imagine all the platinum, gold, chrome, nickel and
diamond mines that we are
all proud of. Yet to think that no cent is
contributed to the treasury is
quite shocking.
We need to unlock
value from our wealth and increase our fiscal space.
Unfortunately, the
Budget statement fell short of outlining measures to deal
with this
situation.
However, what is more instructive is that for the first time
the truth has
been exposed. Going forward we trust that Chiadzwa Mines will
be used to
define a new policy which will enable the mining sector to be the
anchor of
our national revenue. The thrust of the 2010 Budget is a working
thrust.
The Budget is underpinned by a steady improvement in the
macroeconomic and
fiscal space.
A growth of 4,7% in 2009 which is
forecast to increase to 7% in 2010 and an
average inflation rate of 0,9%
gives a good macroeconomic landscape to
launch a growth trajectory which the
2010 Budget does.
Given the slow but sure return of banking confidence as
shown by total
deposits of over US$1 billion in 2009, I think all is set for
the growth of
the economy in 2010. Hence the 2010 Budget is dubbed:
Stabilisation with
Equitable Growth and
Reconstruction.
Significant allocations have been made to the key
enablers of growth which
are infrastructure and energy (US$52 million);
transport (US$26,3 million);
rural electrification (US$5,5 million) and
agriculture. However, lip service
was paid to export
promotion.
In the 2010 Budget poverty eradication has been underlined
as another major
theme. In this regard, the 2010 budget focuses on pro-poor
growth.
As the Finance minister put it, 85% of our population can be
classified as
the “drowning poor”. This large number of “drowning poor”
constitute part
of what Paul Collier calls the global “bottom billion”.
These people live on
less than a dollar a day. It is therefore important to
note that the Budget
tries to address the plight of millions of Zimbabweans
through allocations
to the housing guarantee fund, agricultural inputs as
well as health and
education.
In addition, the newly created vote
of US$8 million set aside for
constituency development funds will also help
leverage development in
constituencies. This is a revolutionary
initiative.
The 2010 Budget also puts more money into the people’s
pockets. Paye has
been slashed from 37% to 35% for the highest paid tax
bracket. The tax-free
threshold has been increased from US$150 to US$160 and
the first US$400 of
bonus is now exempted from taxation. Corporate tax has
been reduced from 30%
to 25%.
I think this is a commitment towards
reducing the rate of taxation which is
one of the highest in the world.
These reductions may appear modest but to
me they are significant given the
narrow revenue base. In 2009, the treasury
only managed to collect US$685
million out of a revenue target of over
US$700 million.
Duty
concessions on small pickup trucks (25%) and small vehicles with engine
capacity of less than 1500cc (25%) as well as on basic commodities will also
boost SMEs and increase food supply into the country. All these are positive
measures.
However, the biggest challenge the US$1,4 billion
Budget still faces is how
to deal with employment costs which already
constitute over 60% of the total
budget against a background of subdued
earnings. The only solution is to
grow the cake — that is increase
GDP.
\
The present revenue structure where corporate tax only accounts
for a mere
4% is worrying. This can only tell us that the so-called
improvement in
capacity utilisation is just nominal and
superficial.
As long as Vat constitutes 39%, customs duty 26% and Paye
15% of revenue, it
means that the economy is structurally pointing towards
consumption. We need
to increase domestic savings in order to create
investable surplus. Domestic
savings are key to growth.
In fact the
so-called Asian Miracle was premised on high savings of over 30%
of GDP. We
also need to restore normal relations with the international
community so as
to pave way for new investment which is critical for growth.
Finally,
we are happy to see that the Special Dra wing Rights, instead of
just lying
idle are now being channelled towards supporting the real sectors
of our
economy, notably agriculture.
We hope that ministries will now formulate
specific strategies to implement
the 2010 budget in a manner which spurs
growth and reduces poverty. Overall,
I think the Budget brings confidence
into the economy.
However, the Ministry of Finance should consult more widely
in future,
especially parliament.
Mashakada is deputy
secretary-general of the MDC-T.
http://www.theindependent.co.zw/
Thursday, 03 December 2009
16:44
FINANCE minister Tendai Biti on Wednesday tabled in parliament the
2010
National Budget which can be broadly described as
regenerative.
The Budget was announced a year after the signing of the
global political
agreement between Zanu PF and the two MDC formations and
the subsequent
formation of the inclusive government in February which gave
a much-needed
boost to confidence in the country.
The
official introduction in January of multi-currencies in the country's
payments system saw the economy slowly and painfully emerging from a
vegetative state.
The economic "little green shoots", to use
Biti's language, must be nurtured
and the momentum for growth and stability
must continue to rise next year.
This can only be achieved by a
stimulative budget like the one Biti
announced on Wednesday.
By
definition a National Budget is a plan of revenue and expenditure that
provides the development priorities of a country.
Given the
global economic crisis and that Zimbabwe had just emerged from a
bruising
internal political conflict, Biti crafted a growth-oriented Budget
framework
which should be implemented to the letter if the country is to
sustain the
recovery momentum.
Biti told the House that his US$2,2 billion Budget
was meant to "save the
drowning vulnerable and poor groups" by developing
and creating a functional
economy capable of consolidating the Short Term
Emergency Recovery Programme
objectives, generating adequate investment in
the country's productive
sectors as well as infrastructure and guaranteeing
improved delivery of
public services.
The 2010 National Budget,
the minister said, would deal with the challenges
through a vehicle he
termed Reconstruction with Equitable Growth and
Stability. In short, he
said, "a pro-poor broad-based and inclusive
development framework". The
budget puts strong emphasis on education,
health, and social services and
the continuation of "a strict and
disciplined macro-economic stabilisation"
programme.
The harsh macro-economic environment, which was the order
of the day in the
past decade, compounded the vulnerability of the poor.
This was worsened by
the scourge of HIV and Aids that has claimed many
breadwinners leaving
children wallowing in abject poverty under the custody
of grandparents.
Speaking on social protection programmes in the
budget, Biti said the HIV
and Aids pandemic has seen an increase in
child-headed households where
elder children are forced out of school to
look for jobs so that they can
look after the needs of their siblings.
School dropouts up to grade five are
at 38% detrimental to the country's
developmental goals and objectives.
In response to this, Biti
allocated US$23 million towards social protection
programmes run by the
Ministry of Labour and Social Welfare.
The vote would go towards
supporting 160 000 secondary school students under
the Basic Education
Assistance Module (Beam) basing on US$30 a term.
Cooperating partners
of Beam have committed US$25 million earmarked to
support 625 000 primary
school-going children.
"This level of support bears testimony to the
goodwill our cooperating
partners have towards the people of this country.
The rest of the allocation
is targeted towards supporting the disabled, the
elderly, and the
chronically ill and other vulnerable groups under various
programmes.
Biti should be commended for coming up with broad-based
policies that
mitigate or minimise the effects of the global financial
crisis on the
vulnerable and marginalised sections of
society.
The parliamentary portfolio committee on the budget, finance
and investment
promotion had proposed to Biti that he adopt a pro-poor and
gender-sensitive
National Budget framework placing emphasis on labour
intensive strategies to
absorb the large reserve pool of labour, while at
the same time promoting
macroeconomic stability to protect
incomes.
Robust growth must be translated into employment growth
which is the key
nexus between growth and poverty reduction. The key pillars
of this growth
are infrastructure development, export promotion, investment
social
investment.
Economic growth on its own does not necessarily
ensure poverty reduction. It
only leads to poverty reduction when
accompanied by rapid growth of
productive and remunerative employment. Most
countries that have succeeded
in reducing poverty have followed strong
employment- creation policies.
"Heavy investment in the human capital
of the poor will yield two benefits
on poverty reduction," the portfolio
committee said. "It will increase
economic growth and it will make growth
more pro-poor. In the High
Performing Asian economies, high human capital
accumulation spurred economic
growth and poverty reduction". So did family
savings which there is no sign
of here. Zimbabwe clearly has a lot of work
to do to catch up with its Sadc
neighbours. Biti's Budget at least provides
a start.
http://www.theindependent.co.zw/
Thursday, 03 December 2009 16:23
THEY are
God’s Lost Generation: there is no sparkle in their eyes and they
walk like
the elderly with stooped shoulders; a shadow hovers over their
heads. In the
school grounds other children frolic about chasing all sorts
of balls and
flying insects, jumping over water puddles. They watch
withdrawn, eyes
cadaver-like. The radiance of childhood is missing; they don’t
know whether
they will live.
Their eyes mist over as they look at the surreal
world. Does reality exist
for them? The affected behaviour of their peers
and their teachers worsen
the stigma making them feel the kind of
inferiority they can never overcome.
The childhood confidence other children
exude is alien to them in its place
a void left by the lack of love and hope
and spirituality. They feel God’s
curse.
They are orphans and
they are also HIV positive; and painfully, most already
have full-blown
Aids.
December 1 was World Aids Day, celebrated with pomp and
circumstance round
the globe. Truckloads of money and goodwill were pledged
and a very good
number of people have vowed to dedicate their lives to the
orphans.
But it is my view that these children, victims of the sexual
liberty and the
moral indifference born of the disillusionment and perennial
civil strife
that visited Zimbabwe in the years of its political and
economic decay need
much more.
A few weeks ago I visited Jonas
Clinic in Seke about 35 km south of Harare
where 50 families received food
handouts from the Jesuit Relief Fund which
operates from Silveira House in
Chishawasha.
Each of the children, mostly orphaned through Aids, and
living in
child-headed families received 10kg of maize, 5kg of corn-soya
blend, 4kg of
beans and 750ml of cooking oil. The corn-soya blend is a
nutritious powder
that can easily be made into porridge.
The
Jesuits, among other projects assist Aids orphans and people living with
Aids. The programme’s main thrust is to provide supplementary food
assistance and help the orphans with their educational requirements by
providing school fees and stationery. The programme also teaches the orphans
life skills such as dressmaking, leatherwork and
blacksmithing.
Another intervention is to provide sanitation by
building toilets in the
homes of child-headed families.
The
programme benefits 1 500 people in Seke Rural, Marondera Rural and
Svosve
areas.
It works through District Aids Action Committees which
identify the orphans
and helps distribute the food and monitor the payment
of school fees and the
procurement of stationery.
The greatest
challenge the project faces, however, is the high numbers of
children
needing assistance.
In this area the Jesuits are assisting only 50 people
although there are a
lot more in need but they simply do not have the
resources to help more
people.
The programme is looking at
supporting child-headed families by giving them
inputs such as seed and
fertilisers — and skills — so that they could
produce their own food through
gardening and cropping.
I talked to Gogo Margret Marimbi who looks
after six orphans. She was very
happy with what the Jesuit fathers were
doing but her tale was as sad as
they come.
“Three of my children
and their spouses died of Aids leaving six orphans
with me. Besides running
a small garden I have no other means of fending for
the children so this
project is a godsend.”
She said she sold the vegetables from the
garden at Jambanja market in Seke
township about an hour’s walk from her
home. “But what I get is not much.”
Accompanied by her grandson
Wilson Marimbi, who is 10 years old but looks
six, Gogo Marimbi said two of
her grandchildren had full-blown Aids so
besides feeding them she also had
to take them to Chitungwiza General
Hospital now and then where they got
their anti-retroviral treatment.
Nursing sister Mary Munemo, who runs
Jonas Clinic, said the incidence of
orphans who are also living with Aids is
very high.
She said the clinic catered for 18 000 people in 20 wards
of whom 800 were
Aids orphans. The number could be higher but there was
still a lot of denial
among some people.
Sharon Chipere (35) who
brought her HIV-positive son Bradwell said there
were many cases in her
village of people who attributed their children’s
illnesses to witchcraft
but more and more people were becoming aware of the
prevalence of HIV and
Aids.
She said she hoped more and more people would, like the
Jesuits, come
forward and help the people living with and
Aids.
“Because of the ARVs my son has to take he has developed a huge
appetite so
there is never enough food in the house. I wish more and more
organisations
would come forward and help us with
food.”
Chengetai Munzvekure who is 15 but looks 10 said she was a
Form 1 pupil at
Chikonde Secondary School but had difficulty attending class
because she did
not have school uniforms and shoes.
Kudos for the
Jesuits and all the other organisations that are helping
children orphaned
with Aids especially those who are HIV positive or have
full-blown
Aids.
However, I have this nagging feeling that these children need
something else
over and above the food, the clothing, the skills and the
latrines; and I am
not taking away anything from the
philanthropists.
How can they be made to come to terms with the shadow of
death that hangs
above their heads? It is this threat more than the
stigmatisation that makes
their lives miserable, empty and meaningless. The
next intervention in the
fight against HIV and Aids should address the
hollowness of these children’s
existence. They deserve dignity, equality and
justice.
Nevanji Madanhire