The ZIMBABWE Situation | Our
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AMNESTY INTERNATIONAL
PRESS
RELEASE
AI Index:
AFR 46/002/2005 (Public)
News Service
No: 020
28 January 2005
Embargo Date:
28 January 2005
00:01 GMT
Zim Independent
The best thing to happen to ZimbabweMOROKA village, a few minutes’ drive into Botswana from Ramokgwebane border post, is only termed a village because it is under the administration of a kgotla run by Headman Jakalasi.
My grandfathers and uncles
have been citizens of that village since the early fifties. Only in 1979, the
eight-kilometre stretch from Francistown was a dusty track patronised by old
404s and donkey-drawn scotch-carts. On either side of this ancient highway, one
would see fragile pole- and-mud huts strewn over wide areas of semi-arid
terrain, occasionally punctuated by under-developed maize and sorghum crops.
Large herds of cattle and well-fed donkeys were a common sight across the roads,
posing a deadly hazard to unsuspecting motorists from the “wealthy” Rhodesian
side.
Today, the reverse is true. This past holiday season, my nocturnal encounter
with the village was an astounding revelation. It was like driving through
Warren Park in its early days — scattered but well-built brick-under-tile houses
with electric lights flickering defiantly from fascia boards. By the time I got
to my uncle’s house, I had already been treated to a spectacle of a well-stocked
supermarket, satellite dishes and running water in homes of what may be termed
“messengers” in Harare.
Rural electrification at its best! I agonised over how long the Zanu PF
government had promised to tar the road from Chachacha via Tongogara to my
primeval Mudzengi village kwaNhema, in Shurugwi.
Time-warped electoral promises have pacified villagers since 1980, who
probably by now struggle to find transport to the provincial hospital — simply
because bus companies are tired of risking their hard-won assets on the rugged
roads of rural areas. Perhaps the only thing that illuminates these forgotten
places is either a solitary light from the chief’s bedroom — a symbol of our
government’s “highly successful” rural electrification programme — or tungsten
lamps dangling from verandahs of bottle stores at “growth points” — Zanu PF’s
euphemism for glorified tuckshops. What a joke!
It turns out that Moroka village is one example of how public accountability,
democracy and respect for citizens combine to form a potent potion of economic
development. Mind you, I have not even mentioned anything of Lobatse, Mahalapye
and Gaborone.
When cross-border travellers comment on how the South African police and
their Tswana counterparts abuse Zimbabweans, I usually chip in with a very
simple analysis. In our own country, citizens are arrested, charged, convicted
and then brought to court to formalise the process. They are sometimes
incarcerated for months on end in remand prison without being brought to trial.
I also remind the critics of the Tswana and South African justice systems
that in our country, we need permission from local police to express public
opinion, hold meetings and distribute political messages. We cannot appear on
television or talk on radio unless we sing praises of the government.
In fact, if we so much as venture to criticise the president, there is a
suitable charge for that too. Therefore the burning question is: if our own
government or system is so spiteful of human rights, why should Tswanas and
South Africans respect us? Who will respect you if you do not respect yourself?
My submission is that all that glitters in Botswana is in fact not just
diamonds, but a high degree of accountability, respect for citizens’ rights,
political sanity, tolerance and good old love for other people. The vengeance
and ridicule characterised by our own political discourse is alien to Botswana.
I know it not from speculation, but through direct experience.
On their television, members of different political parties discuss openly.
At bars, they share jokes, beer and sarcasm. They display their party livery
without fear — which I cannot say of Zimbabweans in Mashonaland Central where
Zanu PF warlords mention words like enemy, no-go area, destruction etc — words
that have no space in the vocabulary of civilised democracies.
I am sure that many of our brothers, sisters and mothers who I saw standing
in the blazing sun at the border post in Plumtree are Zanu PF supporters. I
salute their business acumen, but would echo the conscience of a Tswana
immigration officer who, when there is a problem in their documentation, would
shout: “Go back to your country and work there. Isn’t it you who say President
Robert Mugabe is the best thing that ever happened to Zimbabwe? So what do you
want here? Buyela kogae! Go back to your country.” A harsh reality.
The bare facts are that where a government is accountable, responsible and
democratic, the gains are massive. Firstly, everyone wants to invest in that
country. This creates more jobs and a higher sense of individual security.
Secondly, markets and monetary “emotions” remain bullish and consumers keep
spending, resulting in higher everything — per capita gross domestic product,
foreign reserves, standards of life.
In our case, we border-jump because the risk of being caught and whipped at
the kgotla is less threatening than being perpetual social rejects at home. In
its own ugly way, we deserve a whipping, because we play ball in the
wrong camp — a hostile corner.
I would really care less if this talk sounds like from one whose self-esteem
is well below sea level. I represent five million plus Zimbabweans citizens who
either have no jobs at homes or clean pigsties and old people’s homes in
Pholokwane and Leytonstone. If you do not agree, that is entirely your
prerogative.
Zimbabwe right now is at the bottom of the competitive rung while Botswana is
flying high. For some reason, Sir Seretse Khama left a legacy of decency that
has had a domino effect on his successors. In one way, the bloodless transition
from being a British protectorate to an independent republic paid dividends,
unlike our own version of outright military conquest that left nationalists with
a hangover for haematoid murals on the front doors of political competitors.
Both Zimbabwe and Botswana are in the fast lanes, but while ours is towards
destination self-immolation, theirs is towards stardom. We have a choice to
stand and watch, or slow down and learn.
Ngwenya is a Harare-based marketing executive.
HOW Zimbabwean secondary school students pass their School Certificate or General Certificate of Education Ordinary and Advanced Level examinations at the end of each year in some of Bulawayo’s working-class suburbs could easily be compared to trying to mount a galloping horse with one’s arm tied behind their back.
The problem is not much of
student-to-teacher ratio brought about by a phenomenal expansion of schools
which is routinely touted by the Zanu PF government as one of its major success
over the past 25 years. Neither is it due to lack of professionalism or low
morale among teachers over dispiriting working conditions and low pay, but
something more daunting.
Hard-pressed parents of high school students in Bulawayo’s working class
suburbs are not pouring honey on books like Jews of the ghetto used to do so
that their children appreciate learning is sweet. Neither is the government
pouring money on textbooks to spice up students’ education and allow them to
learn more effectively.
Students are forced to go to great lengths to complete each assignment given
by their teachers due to a critical shortage of textbooks. The high cost of
imported textbooks spawned by a steep depreciation of the Zimbabwean dollar
against major international currencies has nettled poor and middle-class parents
alike. It is now commonplace to come across a class of 40 pupils sharing only
five prescribed textbooks in Zimbabwe’s urban and rural secondary schools.
“We have devised a cluster system where five or more pupils who live near
each other share a prescribed textbook on a rotational basis,” says Magadelene
Ngwenyama, a teacher at a school in one of Bulawayo’s working class suburbs of
Luveve.
Sharing textbooks among so many students also diminishes a book’s lifespan.
Like other high schools, students living in the same section of the working
class suburbs share a single textbook to do their homework. Teachers cannot copy
a whole lesson involving a lot of figures and tables on a single chalkboard they
also share with another class and still give instructions in an allotted
35-minute lesson.
“That is impossible,” Ngwenyama, who teaches accounting, says, adding: “The
school managed to buy only two prescribed textbooks this term because parents
resist levy increases proposed by the school committee to raise enough money to
augment textbook stocks.
“It is so frustrating to both the teacher and the students,” she says with a
sigh of resignation.
A skewed populist policy grounded on putting a lid over levy and fee
increases by the ruling Zanu PF government to endear itself with the electorate
mismatched by dwindling resource allocation threatens to unhinge an erstwhile
praiseworthy effort by the state.
The Education Sport and Culture ministry gives schools grants for textbooks
from its budget allocation each year but the cost of replacing torn ones has
risen dramatically over the years, forcing at least five pupils to share one
textbook. Parents and guardians have to buy textbooks at enormous cost as well.
“School textbooks and exercise books are expensive for us that depend on a
monthly pension,” bemoaned 70-year old pensioner Trynes Sibindi, who fends for
his two grandsons at high school that were bequeathed to him by a son who died
three years ago.
But parents seem to have found a good bedfellow in Education minister Aeneas
Chigwedere who has rebuked school committees and headmasters for raising levies
and fees to meet escalating administration costs without his ministry’s consent.
Last year the ministry suspended several headmasters and ordered some schools
to close for ignoring a ministry directive not to increase fees or levies.
Others, particularly white-dominated schools, were penalised and accused of
attempting to maintain elitism. Concerned parents, keen to give their children
the best education they can, took the ministry to court over the issue.
For instance, a single set of imported, prescribed textbook costs almost half
the monthly salary of a general worker and unless parents scour used textbook
vendor stalls littered along the city’s pavements, there is little hope for them
to buy new ones. Some enterprising parents have tried to photocopy textbooks but
still the costs for doing so are prohibitive.
“We charge $75 000 levy for a term and are the cheapest,” says a bursar at
Magwegwe secondary school who refused to be identified. “Others such as
Sikhulile in the same suburb charge $300 000,” she added.
A term’s levy charged at Magwegwe secondary school is half the price of a
literature textbook such as Shakespeare’s Macbeth or Twelfth Night and a third
of the price charged for a Thomas Hardy paperback, Far From the Madding Crowd.
Ngwenyama says: “Our job as teachers is like bricklayers expected to
construct a house without being given the bricks.”
But despite all the shortcomings in the administration of education,
Zimbabwe’s education is highly rated in the Sadc region, attracting students
from almost all neighbouring countries each year, although critics say this is
more for what the education used to be than for what it is now.
In addition to the debilitating and morale-sapping shortage of textbooks,
Zimbabwe has lost thousands of its trained teachers and other professionals to
neighbouring countries while general school infrastructure is collapsing.
THE ruling on the inquest into the death of Johanna MaFuyane, the wife of the late national hero and veteran politician Joshua Nkomo, is expected to be made public today (Friday) amid allegations that her death was not due to natural causes.
Coroner and provincial
magistrate for Bulawayo, John Masimba, is expected to hand down the judgement
having gathered evidence from 11 witnesses during the inquest last year. This
followed a request by the Nkomo family for an inquest after suspecting foul play
in events surrounding her death.
Ten witnesses including the late MaFuyane’s personal bodyguards, state
security agents and doctors who attended to her when she was taken to hospital
testified in a case that has been before the courts for the last 14 months.
Nicholas Collen Shava, MaFuyane’s driver and a key witness in the case, died
before testifying at the inquest. Doctors who testified in the case include
Etwell Mari, Stanford Mathe and Chandisaita Tarumbwa.
The ruling in the case was supposed to be made last week but public
prosecutor Bongani Walter Dube told the court that the ruling would be made
today as court transcribers had taken too long to transcribe the record of the
court proceedings.
“The delay in coming up with the judgement in this case was due to the fact
that transcribers working on recording and transcribing court proceedings took
long and this did not give the magistrate enough time to write his judgement,”
Dube said.
He said the process was now completed and the presiding magistrate was ready
to make his ruling.
MaFuyane died at the Roman Catholic-run Mater Dei hospital in Bulawayo after
she collapsed at her Matsheumhlophe home on June 3 2003. She was declared a
national heroine and buried at Heroes Acre.
Dr Mari, who attended to her when she was brought into hospital, told the
court that she did not have a heartbeat and her eyes were fixed when she arrived
at the hospital suggesting that she could have been dead on arrival.
In a letter written to the courts by MaFuyane’s eldest daughter, Thandiwe, on
July 4 2003 seeking an inquest into her mother’s death, the Nkomo family says
they were worried by the “grey areas” in the matter.
A summary of a sudden death report in the possession of the Independent
indicates that she died of asphyxiation, due to the forcing of large amounts of
water down her throat.
WITH less than eight weeks to go before the European Union reviews its targeted sanctions against President Robert Mugabe and his officials, investigators in Britain and the United States are working flat out to track assets held by those under review.
The Zimbabwe Independent
heard this week that the Jersey Financial Services Commission, in conjunction
with the Joint Financial Crimes Unit, has intensified its search for funds that
could be held in offshore accounts by Mugabe and his cronies in the Channel
Island.
Financial investigators believe members of Zanu PF have used proceeds from 25
years’ access to the national treasury to buy houses and other real estate in
the UK, the US and elsewhere.
While the investigators have revealed that proof of ownership has probably
been hidden several layers deep beneath “shell corporations” and intermediaries,
the investigators think the expertise and records exist to make tracking
possible.
The commission on its website has listed Mugabe, his wife Grace, and 95
ministers and advisers as “politically exposed persons” who require scrutiny by
banks to ensure there was no “reputational risk” to the institutions.
“Politically exposed persons” are identified with what the commission calls
“potentate risk”, a term given to the risk associated with providing financial
and business services to officials of countries tainted by “corruption, bribery,
scandals and scams”.
“President Mugabe and his associates clearly fit the definition of a
‘politically exposed person’ as defined in the commission’s guidance issued in
the Anti-Money Laundering Guidance Update,” the commission said.
The Independent understands that as yet, no-one has been able to quantify the
scale of the assets in question, and some may be a great deal more difficult to
locate than others.
The commission, which regulates Jersey’s 250 trust companies, 150 investment
firms, 70 banks and 30 fund administrators, said financial institutions should
“review files” to determine whether any links existed with the listed
individuals.
Jersey is a self-governing British dependency, which has grown to become
prosperous because of “offshore” bank accounts held there.
EU and US officials have of late been intensifying the trawling of financial
institutions for possible holdings by political and military leaders of the
Zimbabwean regime.
But the commission seems doubtful.
“We have no reason to suppose Jersey is being used for this.”
But it also said: “Nevertheless, regulated institutions should review their
files to determine whether or not they have any connection with any of the named
individuals. They will then wish to satisfy themselves that they know the
customers concerned and have taken any appropriate action to address any
reputational risks that may arise.”
THE Famine Early Warning System Network (Fewsnet) has placed Zimbabwe on the high priority list. The country needs urgent food assistance to save 5,8 million people from starvation, the network says.
In its latest report
released on Wednesday, the United Nations forecasting arm classified Zimbabwe
amongst priority nations such as Somalia, Eritrea and Ethiopia.
The report said in Somalia there were about 1,8 million people in need of
food, Eritrea, 2,2 million and Ethiopia 8,2 million.
“Staple food availability is declining as market prices continue to rise,”
the report said.
On Zimbabwe it said: “High inflation and the Grain Marketing Board monopoly
are exacerbating the situation. While cereals are still available in urban
areas, continuing erosion of real incomes makes them unaffordable to many.”
Although Zimbabwe officially says that it no longer requires food assistance,
the UN has constantly said that the country is in need of food aid.
“Zimbabwe has imposed restrictive trade barriers that make both formal and
informal trade unattractive to most traders,” the report said.
The Grain Marketing Board was faced with logistical problems and was unable
to supply the country with maize, Fewsnet said.
“As a result, the GMB has had to ration supplies, leading to widespread
scarcities, a booming black market and high retail prices that are beyond the
reach of some Zimbabweans,” it said.
Last month Fewsnet said maize prices on the parallel markets continued to
rise, limiting the ability of deficit households to buy enough food to satisfy
their needs. It warned that levels of malnutrition were expected to rise between
January and March.
“In most urban centres staple cereals continue to be available. But a smaller
proportion of urban households are able to purchase sufficient food due to the
continued erosion of real incomes,” Fewsnet said.
“Food-insecure households in both urban and rural areas are responding
through reducing their consumption. Over time, levels of malnutrition and
related diseases are expected to rise, peaking in the January to March 2005
period.”
Fewsnet said its targeted feeding programmes currently allowed by government
could not adequately address the food insecurity problem facing both urban and
rural communities in Zimbabwe.
“The humanitarian community in Zimbabwe needs to find fresh ideas, palatable
to both the government of Zimbabwe and the donor community, to expand the
limited working space in which they are currently forced to operate,” the report
said.
THE opposition Movement for Democratic Change (MDC) said yesterday it had prepared a dossier to be submitted to a Southern African Development Community (Sadc) delegation which was expected in the country last night.
The Sadc delegation of
lawyers from South Africa, Lesotho and Namibia — countries which form the
regional body’s troika for politics, defence and security that monitor elections
— is due to assess whether Zimbabwe is complying with election guidelines
adopted in Mauritius last August.
The troika’s chairman is President Thabo Mbeki who has been at the forefront
of resolving Zimbabwe’s political and economic crisis.Mbeki and other Sadc
leaders are racing against time to ensure Zimbabwe holds a free and fair
election in March.
The Sadc team is scheduled to examine Zimbabwe’s electoral laws and
institutions to see if they have been sufficiently adapted to facilitate a free
and fair election. Some Sadc countries want the United Nations to be involved in
Zimbabwe’s election.
Sadc leaders are anxious for Harare to comply with the regional bloc’s
principles governing democratic elections in the region.
The Sadc protocol stipulates that member states should hold regular, free and
fair elections.
It encourages the establishment of “all-inclusive, competent and accountable
national electoral bodies staffed by qualified personnel” as well as competent
legal entities to arbitrate in the event of disputes arising.
The Sadc protocol also demands that for elections to succeed political and
civil liberties such as freedom of assembly and expression must be upheld.
Parties should also be given equal access to the public media to campaign.
Member states are encouraged to prevent electoral fraud and cheating.
Zimbabwe has enacted two new laws in a bid to comply with the Sadc rules.
A purportedly independent commission has been set up. Voting will be done in
one day instead of two and the counting of votes will be done at polling
centres.
However, the MDC says the electoral reforms are cosmetic and piecemeal. MDC
leader Morgan Tsvangirai has been travelling in Africa and Europe to mobilise
the international community to bring pressure to bear on Zimbabwe to hold a
genuine election.
The MDC’s dossier says the legal framework and political environment are
hostile to a free and fair poll.
MDC legal affairs secretary David Coltart said the dossier would be submitted
to the Sadc team so it could understand the situation on the ground.
“We have a comprehensive document which we will submit to them on the current
situation,” he said.
The dossier says the environment is not conducive for free and fair
elections. It cites a series of legal and political factors that would make it
impossible for Zimbabwe to hold a legitimate election.
The MDC document says laws such as the Public Order and Security Act, the
Access to Information and Protection of Privacy Act, and Broadcasting Services
Act were restrictive.
It also says political intolerance and violence were still high, while
political and civil liberties were being curtailed. The dossier indicates that
repression and human rights abuses would militate against a free and fair
election.
OPPRESSIVE, dictatorial, autocratic, despotic, authoritarian, totalitarian, cruel, repressive, brutal, tyrannical, lawless, bloodletting, restrictive and intolerant.
The list can go on and on.
Do these words describe George W Bush’s Republican party, Tony Blair’s Labour
party or Robert Mugabe’s Zanu PF?
I wish Information minister Jonathan Moyo was ready to answer but pity he is
wallowing in the mire!
Tjiliwa wa Lugondo,
Plumtree.
WHILST I look forward to the return of Heath Streak and the other so-called rebels into the Zimbabwe Cricket fold, I would urge them to think very seriously about the timing of their comeback.
I suggest that if they do
come to some form of agreement with the ZC, they only make themselves available
after the Zimbabwe Cricket tour to South Africa. Should four, five or however
many are chosen, play against the Proteas, they will be in a no-win situation as
it is highly unlikely that any of them will shine against a strong South African
side, particularly after having not played regular first-class cricket for
almost a year now.
Any Zimbabwean test team, irrespective of the make-up will more likely than
not, be thrashed by the South Africans. This being the case, it will give ample
ammunition to Peter Chingoka, Ozias Bvute and the local media to say: “You see
we should have stuck with the youngsters who at least beat Bangladesh in the
One-Day Internationals and who are gaining experience game after game rather
than having these rebels back who perform no better.”
Conveniently forgetting the difference in strength between Bangladesh and the
Proteas, let the youngsters pit themselves against our neighbours to the south
in the Tests and ODIs and only then can the cricket fraternity gauge how far
they have come in terms of experience.
Trevor Blyth,
Harare.
WHILE the state media may want to downplay the achievements made by MDC president Morgan Tsvangirai during his trips abroad, the truth is that he and his delegation have covered a lot of ground.
Zambian president Levy
Mwanawasa was recently quoted by a local weekly calling for UN involvement in
the forthcoming Zimbabwean parliamentary election by sending monitors and
observers. It is crucial that the UN intervenes as Zimbabwe under President
Mugabe has never held free and fair elections.
There were acts of violence against PF Zapu members in 1985. In 1990 Patrick
Kombayi, then a Zimbabwe Unity Movement (Zum) official, was almost shot dead by
the late vice-president Simon Muzenda’s bodyguard.
The culprit was convicted and sentenced by the courts only to be pardoned by
President Mugabe.
Many Zanu PF parliamentarians walked their way to parliament over dead
bodies.
A good number of results for the 2000 parliamentary election were nullified
by the High Court because there was evidence that Zanu PF candidates had used
violence to steal the election — evidence that the elections were not free and
fair.
Had it not been for the Supreme Court, which made sure that the appeals
against the nullifications were put on hold, some of the Zanu PF MPs who lost
cases in the High Court could have lost their seats.
The above analysis is just to prove the point that there have never been free
and fair elections under President Mugabe in Zimbabwe, contrary to what he and
Zanu PF may want the world to believe. That is the reason why the MDC president,
the entire MDC leadership and all the progressive forces of Zimbabwe should try
their best to educate Sadc, Africa and the international community on the
reality regarding the state of democracy in Zimbabwe.
If the truth be told, it is the MDC which has to be credited with peace
prevailing in the country. Had it not been for the position taken by the party
leadership that the party would not participate in the 2005 parliamentary
election if Sadc guidelines on elections are not adhered to, hundreds of people
opposed to Zanu PF could have been murdered by now.
This happened in the 2000 parliamentary election, in the 2002 presidential
election and in most of the parliamentary by-elections held after 2000. Zanu PF
tried in vain to contain its sponsored thugs for fear that its violent nature
would be exposed to the world.
Peace-loving Zimbabweans should in turn reward the MDC for its stance which
has seen the reduction of violence by voting for its candidates in the March
election should the party finally agree to take part.
If the MDC is able to contain violence before it assumes power, Zimbabweans
are guaranteed of peace with an MDC government in charge.
Development only takes place in a peaceful environment and that is the reason
why all peace-loving Zimbabweans should rally behind the MDC.
While the party should continue to prepare for the election, a decision on
whether to participate or not should only be made just before the sitting of the
nomination court.
If the decision is made before a careful analysis is made, Zanu PF will
resort to violence and the electorate will be confused if the MDC withdraws its
participation after initially making a commitment to participate.
I also call on the UN secretary- general Kofi Annan to seriously consider the
Zambian president’s advice and assemble monitors and observers for the
forthcoming election.
Mwanawasa is closer to Zimbabwe and it is apparent he knows what the
environment in Zimbabwe is like.
Benjamin Chitate,
Harare.
I ADDRESS this letter and appeal to you (the editor) in as much as I do to every Zimbabwean across all political, social or religious divides, to look critically at corruption in this country in the same way the world should have looked at the Tsunami effects had we been forewarned of its coming.
It’s not Zimbabwean by
origin as Zimbabweans have naturally and culturally been a very honest people.
It’s foreign culture and let’s know who is bringing it to fight it. Some of
those we call friends may not be true friends, but the worms;
It has killed all our societal values from the core;
It has pervaded deeply all our lives economically, socially, politically
and religiously and is about to explode;
It’s no longer a cancer in government, private sector, Zanu PF/MDC, etc,
but in us all;
It’s the reason why we cannot unite as Zimbabweans as it has brought
economic hardships and consequently the political divide;
Whoever our true enemy is, is using this strategy to keep us down, out of
international focus (economic development), divided and draining our resources;
It’s the reason why our productive sectors and capacity have collapsed as
everyone is discouraged from working hard where others make quick bucks without
a sweat;
It’s the reason behind inflation as our productive sector has been killed
and our foreign currency drained, paying for the huge corruption commissions in
forex;
It’s the reason for service provision collapse in both government and
private sectors as solutions provided under corruption are no genuine solutions
but bubble-gum cover-ups;
It’s the reason for retrenchments as orgnisations are robbed of both
solutions, time, confidence and zeal on the part of the innocent workers, their
hard-earned money, etc;
Perpetrators of corrupt deals usually resign after ruining companies and
leave innocent workers to face the bubble-gum solution without enough funding;
Payments for these deals are being made into foreign currency accounts
(FCAs) in the form of holidays and school fees payments abroad, vehicle
purchases, etc which are generally luxuries to the beneficiary and rarely come
back to build the country;
It erodes all sense, objectivity and rationale in the way organisations are
run;
Innocent workers and the general citizenry witness corruption as it is
committed but keep quiet due to fear, non-concern and ignorance of the effect on
them;
We can go on, but all we are highlighting is look out for it.
Now that everyone (the government, private sector, war veterans, who have
always been against corruption from what I know of true war veterans), war
collaborators, the two political parties and general public in the country are
ready to fight this worm, let’s all rally together as Team Zimbabwe to fight our
common enemy.
Part of our strategy can be:
To establish an anti-corruption levy (hoping it will not be corruptly
abused) in every company or organisation to reward the fighters;
Establish a column in every publication to expose the scourge daily (please
editors!);
Reward adequately the judiciary, police (law enforcers) and everyone to
minimise temptations;
To use this as the key campaign theme for all aspiring candidates across
the political divide in the coming election. This will scare away corrupt
candidates from whichever party;
Security organs to put up alert access points countrywide to receive and
respond to information on corruption;
Let’s talk about it everywhere, homes, churches, on the roads, workplaces.
Sendekera Murambatsvina,
Harare.
JANUARY 24 was the anniversary of the freeing of prisoners from Auschwitz concentration camp where one-and-a-half million Jews were slaughtered.
The United Nations
honoured the day. Secretary-general Kofi Annan told the world that evil can only
prosper when good people remain silent. I have not heard him say much about
Zimbabwe!
Human rights activist and Auschwitz survivor Elie Wiesel addressed the UN
with a heart-rending account and plea to the world to ensure that evil is never
allowed to prosper.
It made me ashamed that President Mugabe likened himself to Adolf Hitler who
was responsible for this greatest atrocity ever committed.
As he continued with his speech, I became sick that I was a Zimbabwean, a
people who cannot stand up to a dictatorship that kills and tortures its
citizens. I became revolted at the Zanu PF cadres, police and civil servants who
carry out the wishes of a leadership that employs evil ways to stay in power.
Wiesel told us that the inmates at Auschwitz were not elated when they saw
their saviours. They felt they had been tortured as much by the world that stood
by and did nothing as by their tormentors. It is up to everyone of us to stand
up to evil, whether we are Zimbabwean, Zanu PF or not.
Only when we do this can the world be a better place for our children.
A McCormick,
Harare.
THE Reserve Bank of Zimbabwe (RBZ) has agreed that exporters who in the past sold their hard currency in exchange for Zimbabwe dollars, can now retain more than half of it in their local foreign currency accounts.
This means that local
exporters will no longer have to dispose of their earnings at the official rate
of $824 to the US dollar.
“We are pleased that under the carrot and stick framework, exporters are
responding to the initiative remarkably well, with the bulk of export proceeds
now being repatriated within 30 days effectively allowing producers to retain
100% of their earnings in foreign currency accounts (FCAs) free of any surrender
requirements at the government priority sector rate of $824/US$,” RBZ governor
Gideon Gono said in his monetary statement on Wednesday.
“As of December 2004, 75% of export proceeds were repatriated within 30 days,
effectively benefiting exporters through 100% retention of inflows in FCAs. This
was up from a proportion of 26,6% of export proceeds which came in with the
30-day period in January 2004.”
He said exporters would now be able to retain 70% of their earnings in their
foreign currency accounts and surrender the remainder at the auction rate, on
condition that they repatriated the funds within 90 days.
In the past, exporters were forced to dispose of all their foreign currency
earnings to the central bank in exchange for local currency within a 60-day
period, with at least a tenth of the money sold at $824 against the greenback.
The new policy shift is in line with suggestions made by industrialists to
the central bank.
Gono also told indigenous banks that they would be subjected to a new
stricter auditing system that will come into effect from March.
Gono’s comments come in the wake of numerous complaints from mostly
indigenous bankers that they should be subjected to a less stringent set of
supervisory rules compared to the established banks.
“We thus reject the notion and misplaced expectation that the Reserve Bank
should treat one class of banking institutions using a different, softer
accountability scale, while treating another class with bare knuckles in defence
of depositors’ security,” he said.
“This will not happen in the Zimbabwean financial sector and any current or
future players in the sector by whatever description, connection or origin, will
have to abide by one scale of the supervision, accountability and responsibility
standards that are primed to international best practices.”
He said with effect from March 1, the central bank would also introduce
“independent computer-based auditing packages to interrogate financial databases
at banking institutions to validate their accuracy and validity”.
Last year at least seven local banks were placed under the management of
curators, which resulted in loss of confidence in the industry.
The central bank said it was also going to disburse $10 trillion in domestic
debt over the next two years as it overhauls parastatals and drives inflation
down.
Gono said the country’s annual inflation rate was set to subside from
three-digit levels to between 20% and 30% by the end of 2005.
By December Zimbabwe’s inflation rate was 133%, down from 620% at the start
of 2004.
Since 2000, the country’s economy has shrunk by 30%.
“Our inflation is still the highest in the world and this remains a scar on
our face,” Gono conceded this week.
“In 2005 we expect inflation to end at between 20% and 30%,” he said. This is
a revision from the target Gono set last year for a 2005 year-end rate of
between 50% and 60%.
The central bank also reviewed the gold price from the current $92 000 per kg
to $130 000 with effect from February 1 this year.
Gono said that the Homelink initiative last year alone remitted US$54,8
million, dwarfing most traditional inflows.
“For the economy to operate smoothly, the country needs monthly inflows of at
least US$250 million or US$3 billion annually,” he said.
ZIMBABWE can increase sugar output by nearly 50% if allowed greater access to the European Union (EU) market to compensate for expected loss of revenues from planned sugar reforms, an industry official said.
The EU is planning reforms
which will cut preferential prices for sugar from African, Carribean and Pacific
producers (ACP) by about 40%, and has proposed more access to offset likely
falls in revenue.
Zimbabwe Sugar Association secretary Steve Frampton said on Wednesday that
Zimbabwe’s quota would not be reduced as a result of the reforms, but a price
cut would still hit the industry hard.
“For us there will be a reduction in prices and we will be happy for any sort
of compensation that will come, so we are looking forward to increased access to
the EU market,” Frampton said.
“We are saying we have the capacity to expand production to 620 000 tonnes if
allowed to increase exports.”
The southern African nation — expected to emerge from a five-year recession
this year — has two export preferential agreements with the EU allowing it to
sell 56 024 tonnes of white sugar to the trade bloc.
Former European colonies in the ACP — which includes Zimbabwe — supply the
EU, the world’s biggest sugar purchaser, with 1,6-1,7 million tonnes of the
commodity each year under preferential deals at above-market prices.
The EU has sketched out plans to compensate poor countries for any loss in
revenue, but some nations say this may not be enough for producers who export
all their sugar and import to meet local demand.
Zimbabwe’s total export figures for 2004 are not yet available, but the
country met its EU quota last year and in 2003 exported a total of 124 300
tonnes.
Besides sugar exports to the EU, Zimbabwe also has a 12 000 tonne quota to
the United States and ships sugar to India, Malaysia, Egypt, Canada and South
Africa.
Sugar production fell 16% to 422 300 tonnes last year after some cane farmers
failed to plant because their land had been earmarked for seizure by the
government.
In 2000 President Robert Mugabe’s government began seizing white-owned farms
in a policy that has disrupted commercial agriculture and been partly blamed for
food shortages in the country since 2001.
But he argues that the land reforms were necessary to correct imbalances
brought about by nearly a century of colonial rule which saw white farmers
getting about 70% of the country’s fertile land.
Zimbabwe’s major sugar producers include Hippo Valley Estates, owned by Anglo
American Zimbabwe, itself a subsidiary of miner Anglo American and Triangle Ltd
— which is owned in turn by South Africa’s Tongaat-Hulett and Anglo American.
Mkwasine Estates is jointly owned by Hippo Valley Estates and Triangle
Limited.
A Hippo Valley spokesman said the sugar producer was negotiating with the
government after Mkwasine and its estates were earmarked for compulsory seizure
by the government.
Hippo produced 236 116 tonnes of sugar in 2003 and although last year’s
figures were not available, the spokesman said production for this year would
not be much different from past years. — Reuter.
THE recent collapse of CFX Bank and the holding company after a due diligence had been carried out has brought the role of auditing firms under scrutiny.
Their ability to
effectively carry out their duties as curators and financial managers has been
questioned. With this in mind, the Zimbabwe Independent sent questions to the
current president of the Institute of Chartered Accountants of Zimbabwe, Eric
Bloch, on the role played by auditors in the collapse of some financial
institutions. The following are the questions presented to him and his answers
on the issue.
Q: What role have auditing firms played in the collapse of financial
institutions in the light that they have found nothing sinister in the audited
accounts of banks, and are such firms competent enough to handle audits of large
financial companies?
A: Chartered accountants are very extensively trained in all facets of
auditing and all audit personnel of firms undertaking audits receive extensive
training. The conduct of audits is invariably subject to comprehensive
monitoring and review by qualified audit partners and audit managers.
No evidence has been forthcoming to indicate, at this time, that any of the
troubled financial institutions had been subject to defective audits, or that
auditors had played any role in the collapse of such institutions. However, as
explained above, it is not practically and realistically possible for audits to
expose financial mismanagement, abuse and frauds in instances where collusion
between personnel of the financial institutions override normally effective
internal control systems, or in instances of sophisticated and exceptionally
well concealed frauds (and especially so when such frauds are found upon highly
skilled forgery of documentation of a nature which must be perceived to be prima
facie genuine).
The institute has no reason to doubt the competence of Zimbabwe’s firms of
chartered accountants to handle financial institution audits, but has taken and
will take appropriate action in any instance where it is established that such
competence does not exist.
Q: What is the cause of the failure to detect abnormalities in the financial
statements of the collapsed financial institutions?
A: The failure to detect abnormalities in financial statements of collapsed
financial institutions has, in so far as we know to date, been occasioned by
such institutions having had necessary internal control procedures in place to
an extent required to satisfy auditors, but collusion between personnel of such
institutions and/or highly skilled forgeries and computer engineered frauds
cannot always be detected or that it becomes evident that the internal control
procedures have effectively been over-ridden.
Q: Auditing firms have been accused of rubberstamping accounts of failed
institutions. What is your comment?
A: No evidence has been forthcoming to corroborate the allegation, and the
institute has no reason to consider that there is any substance or validity to
the allegation.
It appears that, to all intents and purpose, auditors are being made
“scapegoats” when, in reality, the fiscal mismanagement and abuses, and diverse
frauds were pursued in ways as successfully circumvented the apparently good and
sound international procedures of the institutions, and the auditors’
evaluations of such procedures and systems, primarily by recourse to advanced
and high-level collusion and forgeries within the institutions.
Q: Will auditing firms as curators be able to turn around the fortunes of
failed financial institutions, having failed to detect frauds and financial
irregularities?
A: Many chartered accountants have developed extensive business and
managerial skills and therefore are very suited to fulfil posts as curators,
judicial managers and the like. In doing so, they have to determine whether the
relevant entity has sufficient inherent substance and purpose as necessary to
recover from its troubled financial circumstances, after determining the extent
of the institution’s negative circumstances and based thereon to identify
alternative opportunities and measures to achieve such recovery.
Their expertise is such that whilst not all financial institutions can be
effectively salvaged due to the extent of damage sustained, others can be
restructured effectively and restored to viable and secure operations by
recourse to that expertise.
THE move to open the Zimbabwe Allied Banking Group (ZABG) looks set to cause a legal furore because the inclusion of three financial institutions — Barbican Bank, Royal Bank and Trust Bank — was done arbitrarily in breach of regulations.
The Reserve Bank of
Zimbabwe disregarded the provisions of the Troubled Financial Institutions
(Resolution) Act.
Former directors and shareholders complain that the central bank lynched its
own laws in its hurry to open the ZABG.
Among crucial issues disregarded by the RBZ is the provision to seek
confirmation from a High Court judge before amalgamating the banks.
There was no effort to inform former directors of the move to take over their
banks as required by some sections of the Troubled Financial Institutions
(Resolution) Act. The central bank was also supposed to issue a proper statement
to announce the inclusion of the three banks in the ZABG.
Analysts said the central bank acted arbitrarily because it had become too
powerful and no longer accountable to anyone. They said this type of decision by
the central bank was unprecedented.
In a statement last week, the RBZ announced that Barbican, Royal and Trust
Bank would become the first financial institutions to be swallowed into ZABG.
It said Intermarket had been left out because of its ongoing merger talks
with an unnamed financial institution while Time Bank had a pending court case
with the central bank.
Also not explained was whether such criteria had been arrived at in
consultation with shareholders and former directors and ordinary depositors.
Former bank owners and shareholders said they were not informed of the
take-over of their banks.
It is this huge discretionary power by the central bank that has created
resentment in the financial sector amid allegations that the RBZ was getting too
powerful.
The analysts said the RBZ had transformed itself from a mere regulatory
authority to a player and referee in the operations of the financial sector.
This has seen the bank spreading its tentacles into all facets of the sector.
They said this was not good for corporate governance.
Through amendments of standing regulations and/or creation of new ones, they
said, the RBZ has now put a dead man’s grip on the financial sector.
Over the past 12 months several laws have been passed to give the RBZ more
sweeping powers. The Financial Laws Amendment Act passed last year gives the
Reserve Bank of Zimbabwe powers to be the licensing and regulatory authority of
asset managers, unit trusts, microfinance and money-lending companies.
This is in addition to the Troubled Financial Institutions (Resolution) Act,
which gives it the power to take over collapsed banks without due compensation
to shareholders and former directors.
The RBZ’s influence has also spilled into fiscal policy issues, rendering the
Ministry of Finance and Economic Development almost irrelevant.
In January last year the central bank also took over the registration of
banks, a role previously reserved for the Ministry of Finance. The RBZ is now
the registrar, supervisor and controller of banks.
The analysts say the central bank has arrogated to itself too much power and
is diverting from its core business of regulating the financial services sector
and defining the monetary policy of the country.
It has also gone into bureau de change business of buying foreign currency
directly from the market. It announced that it would go directly into the market
to buy foreign currency under its Homelink initiative. A company in which the
RBZ has a majority shareholding has already been formed with Gono as the
chairman.
There is also a prospect of the central bank venturing into retail banking
through the “troubled” Zimbabwe Allied Banking Group (ZABG) where it has a large
shareholding together with the government.
Analysts say control on the banking sector has also been widened to include
human resources issues. The RBZ now wants to be directly consulted in the
appointment of key staff in the banking sector.
According to the new plan, the central bank will scrutinise the CVs of the
top three personnel in each department. The RBZ will also be involved in the
appointment of chief executives and senior management of banks.
This week Gono promised to tackle virtually every sector, including
parastatals which he accused of gross inefficiency.
He will also intervene in the governance of local authorities. The two
sectors were allocated $10 trillion for their turnaround plans.
All this, analysts say, has made the RBZ too dominant whilst its venture into
the direct purchase of forex and entry into the retail banking through ZABG
compromise corporate governance.
Bankers have questioned the powers and impartiality of the RBZ as a monetary
authority.
Dr Alex Magaisa, a law lecturer at the University of Nottingham in the UK and
a regular columnist of the Zimbabwe Independent, said the RBZ was now too
powerful.
He said the bank was getting too involved in the affairs of individual banks
and might expose itself to legal liability if something went wrong.
“The RBZ is becoming too powerful. More important, however, is that by
getting actively involved in individual institutions’ affairs, the RBZ might
expose itself to legal liability in case something goes wrong as a result of
their interventions,” said Magaisa.
“The best scenario is that an independent supervisory authority should be
created so that it concentrates solely on the supervision of financial markets
generally and leaves the central bank to focus on the key monetary policy
duties.
He said while there was nothing particularly wrong in the supervisor being
the authority responsible for registration, the question was whether the RBZ
would behave any differently from the ministry.
This means that the central bank now has unilateral powers to decide on the
fate of any bank without any alternative for the banks to challenge its actions.
The issue in which the troubled Time Bank has dragged the RBZ to court is a case
in point. There are now serious doubts about the impartiality of RBZ in its
future dealings with Time Bank after the case has been concluded.
Its effort to control the recruitment policy of banks is also open to abuse
by the central bank.
“The idea of playing a role in the recruitment obviously makes the chosen
ones indebted to the governor and this might compromise both the RBZ’s
supervisory role and the executive’s independence which is very important in
corporate governance,” Magaisa said.
Others said the recent move by the reserve bank to open MTAs under the
Homelink brand did not augur well for the sector. They said the central bank was
usurping roles initially meant for the private sector. The Reserve Bank is now a
full-time operator of several foreign currency exchange outlet around the
country.
Their Homelink outlets are already competing directly with private banks and
other money transfer agencies. To consolidate its grip on the foreign currency
trading the RBZ has since formed Homelink Pvt (Ltd) in which the bank would have
majority shareholders.
“Playing the leading role in the buying of foreign currency from the public,
the Reserve Bank is transcending its actual role. What then becomes the role of
private banks,” asked an economist with a local bank. “The playing field in the
purchase of foreign currency is no longer level. What guarantee do we have that
their policies would be fair. It is now the referee and the player in the
financial sector,” he said.
There are also reservations that the government’s move to venture into retail
banking through the ZABG can also compromise the central bank’s role. They say
it is against basic corporate governance for the central bank to operate a
retail bank as what is happening with ZABG. This means that the RBZ is literally
jostling for customers and business with established banks.
THE country’s gross domestic product (GDP) growth for 2005 is expected to decelerate by minus 3,5% from last year’s minus 6,4%, Finhold has said. “There is going to be a decrease in the rate of decline of GDP growth but the figures remain negative,” an official at Finhold said.
This is contrary to
Reserve Bank of Zimbabwe (RBZ) governor, Gideon Gono’s claim that the economy
will register positive GDP growth.
“We anticipate a GDP growth of between 3% and 5% this year,” Gono said while
presenting his monetary policy statement for the fourth quarter, 2004 on
Wednesday.
In his monetary policy statement for the third quarter to September 30, Gono
also forecast 2005 GDP growth of 4%.
Economic analyst John Robertson said there was going to be a shrinkage of GDP
this year.“The governor’s forecast GDP growth figure of between 3% and 5%
totally contradicts evidence on the ground,” he said.
He said there was confusion and uncertainty about government plans in the
mining sector, tourism was weak while the manufacturing sector was declining.
Over the past four years, the major contributors to the country’s GDP, namely
agriculture, manufacturing and tourism have been in free-fall since government
embarked on the controversial land reform programme.
Tobacco production, formerly the country’s major foreign currency earner, has
gone down by 58% during the same period.
Maize production has also decreased by 72%, according to the Commercial
Farmers Union.
Manufacturing has declined by more than 35%.
At its peak, tourism contributed 6,5% to total GDP while agriculture and
manufacturing contributed 16% and 18% respectively.
GDP is one of the key components of measuring the country’s economic
performance.
Zimbabwe is in its sixth year of economic recession, which was sparked by the
violent seizure of white commercial farms in 2000.
Gono is however optimistic that GDP growth will return to positive territory
because of the combined effects of the concessional financing facility and
increased foreign currency availability.
He said the rapid decline in inflation and improved confidence in the
productive sector would help boost the economy.