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Politburo poll stance jeopardises unity govt

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:03

Faith Zaba

ZANU PF is in a state of confusion over election timelines after its
politburo insisted on Wednesday that general polls would be held this year
contrary to the agreement of the coalition government’s tripartite
negotiators.
The three political parties’ negotiators had agreed on polls being held
sometime in 2012 after full implementation of the election roadmap.

The politburo’s latest stance could jeopardise ongoing GPA negotiations and
undermine Sadc’s mediation role.

Zanu PF negotiators Patrick Chinamasa and Nicholas Goche were instructed by
the politburo to revise the agreed GPA timelines and ensure that the roadmap
was fast-tracked to allow for holding of elections this year.

Agreed issues on the roadmap include lifting of sanctions, completion of the
constitution-making process, media reforms, rule of law and amendments to
electoral laws, among others. Timelines for security sector reforms remain
in dispute since Zanu PF insists that Zimbabwe’s security sector is highly
professional and respected worldwide.

Politburo insiders told the Zimbabwe Independent that President Robert
Mugabe set the tone of the meeting by stating that he wanted elections held
this year triggering a flurry of endorsements from his followers.

“The president spoke first and said elections should be held this year and
everyone else agreed. There were no opposing views,” said one source.
This is not the first time Zanu PF has come up with a position contrary to
that taken by its negotiators together with their counterparts from the two
MDC formations.

In August 2010 the negotiating teams came up with an implementation matrix
with timelines on 23 agreed issues which were rejected by the politburo. The
Zanu PF bigwigs insisted that they were no longer going to make any more
concessions until sanctions were removed.

They were adamant that implementation of agreed issues should all be done
simultaneously with the lifting of sanctions.

Asked why the politburo differed with its mandated negotiators, Zanu PF
spokesman Rugare Gumbo said there were no contradictions, divisions or
confusion within the party over elections.

“We appealed to our negotiators to try and cut down the timelines. There is
no contradiction at all. The timelines are too  long and we want them
shortened,” said Gumbo.

On the negotiators’ response to the party’s push for elections this year,
Gumbo said: “There was no response. The decision was unanimous. I don’t know
how they are going to go about it, but the party is concerned that the
timelines are too long.”

The constitution-making process has been stalling due to funding problems
and bickering between the political parties, but Gumbo said it was possible
to craft a draft if timelines were shortened.

“We stand by our party position that elections will be held this year. That
position has not changed,” insisted Gumbo.

However, two senior Zanu PF officials have already publicly declared that
elections could not realistically be held this year.

Chief negotiator Chinamasa said three months ago: “It’s my opinion that it
is not possible to hold elections this year.”

The party’s legal guru Emmerson Mnangagwa told the UK’s Sunday Telegraph
that if a referendum was held in October, elections could only be possible
in February next year.

Mugabe has been pushing for elections this year saying he was fed-up with
the inclusive government and the GPA. His position is strongly backed by the
country’s security chiefs and party hawks whose views are widely articulated
by politburo member Jonathan Moyo.


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Military moves on Mugabe succession

http://www.theindependent.co.zw/

Friday, 15 July 2011 07:59

Dumisani Muleya

PRESIDENT Robert Mugabe’s simmering succession power struggle is
intensifying amid clear indications that for the first time a new group
involving military strategists and politicians within the party is seriously
gathering ground, sensing leadership change on the horizon.
The emergence of this group straddling Zanu PF and state structures could
change the succession dynamics and possibly the outcome as Mugabe nears the
end of his long political career due to old age and health problems.

Zanu PF insiders say there are serious manoeuvres on succesion because those
with information now know very well that the party is on its last legs and
Mugabe is inching towards the exit even though the new group wants him to
first win a term of office before he retires and goes by natural causes.

Extensive briefings of the Zimbabwe Independent  by Mugabe’s advisors and
Zanu PF insiders show the new group is gathering around Zimbabwe Defence
Forces (ZDF) commander General Constantine Chiwenga and Zanu PF politburo
members who have lost confidence in the two main traditional party factions
to provide a potential successor to Mugabe.

Zanu PF is dominated by two main factions led by retired army commander
Solomon Mujuru and heavyweight Emmerson Mnangagwa. These camps are however
fluid and members keep shifting and changing depending on the situation and
circumstances. Zanu PF has resultantly become a study of confusion due to
these factions and factions within factions.

“The situation is moving and changing fast,” a senior Zanu PF official said.

“Those strategically positioned in Zanu PF know that Mugabe is on his way
out due to old age, health issues and internal pressure. As a result they
are fighting everywhere you find them. Clashes are now to be found at the
politburo, central committee, and other lower levels of the party. In
government, there are divisions in cabinet and parliament, as well as in key
state institutions. The fights around the succession issue are going on.”

Zanu PF spokesman Rugare Gombo yesterday said there were no factions in Zanu
PF.

“We will see it (third faction) when it emerges. There are no factions in
Zanu PF. Mnangagwa himself said it when he said that he was number 12 in the
party. The general line I can give you is that it is the party that leads
the country and not the other way round (he was referring to the military
producing a candidate),” Gumbo said.

In recent years those touted as potential successors to Mugabe include
Mujuru, Mnangagwa, Sydney Sekeramayi, and more remotely John Nkomo, Simon
Khaya Moyo, Gideon Gono and Saviour Kasukuwere. However, Chiwenga’s mention
has become a dramatic and stunning proposal in the growing list of potential
successors.

Sources said influential political and state institutional players warming
towards Chiwenga include Attorney-General Johannes Tomana, Zanu PF politburo
member Jonathan Moyo, Police Commissioner-General Augustine Chihuri, and
Brigadier-General Douglas Nyikayaramba, among others. Moyo reportedly has
open doors to all these people.

Chiwenga enjoys support of the Joint Operations Command (JOC) – which brings
together the army, police and intelligence service chiefs, although internal
rivalries are rife. Indications are that JOC is the main body behind Zanu
PF, something which gives Chiwenga a springboard if he later chooses to join
the Mugabe succession race.

Nyikayaramba recently told the Independent that the military would want to
see Mugabe die in office. However, when it comes to who will succeed him the
army would first of all weigh the candidates before deciding to support one
of them or fielding its own. Chiwenga is being bandied about as the
potential candidate for the new group.

Another credible source said the view that Chiwenga must be fielded as an
alternative candidate was “growing and gathering momentum”.

This has riled mainly members of the Mujuru faction who do not want to
entertain the idea. Senior members of the Mujuru faction, which has
Sekeramayi and Kasukuwere as potential candidates, say they would block
Chiwenga if he dares join the succession race.

Mnangagwa, who recently said he has no ambitions to become president, is
said to be close to army commanders now as Defence minister, although they
do share the same vision of the way forward.

Sources said whereas army commanders want elections this year to ensure
Mugabe secures a new term for Zanu PF while still relatively fit and are
hostile to Prime Minister Morgan Tsvangirai as alternative future leader of
the country, Mnangagwa is not totally opposed to him.
While army top commanders were fiercely anti-Tsvangirai, Mnangagwa recently
said since he was Defence minister in 2009 he found the prime minister “a
very sound, sober person and have no problem with him”.

A few years ago Mnangagwa was linked to a soft landing plan for Mugabe
involving Tsvangirai and a retired army colonel. The Mujuru faction also
largely has no problems with Tsvangirai. Zanu PF factions need an alliance
with MDC-T to elect a successor in parliament in the event that Mugabe goes
before his tenure is finished.

Sources said people who want Chiwenga, who has been improving his education
at the University of Zimbabwe (UZ) studying political science, are pulling
out all the stops to prepare the ground for him. Chiwenga’s supporters are
said to be trying to build a political and social base for him using
military and party structures.

Chiwenga, who is reportedly 55, has strong liberation struggle credentials,
hence moves to make him an alternative successor to Mugabe. He joined Zanu’s
armed wing Zanla in 1973 and became a member of the general staff the
following year before joining the high command and operating as deputy
commissar in 1978 until Independence in 1980.

After Independence, he became 1 Brigade commander in Bulawayo, commander of
5 Brigade in 1984, Brigadier-General at army headquarters, Major General and
Chief of Staff and then Lieutenant-General and Zimbabwe National Army
commander in 1994 and ZDF commander in 2003.

A number of ZDF officers are also studying at UZ, while key state
institutions are managed by retired soldiers who may provide a soft landing
for Chiwenga if he enters the race. Although Chiwenga has a solid military
base to launch a political career from, he does not have a social base.

Sources said behind the scenes various succession permutations are being
discussed. While all sorts of scenarios are being painted, it has always
been feared someone could emerge to take power, claiming that he expresses
the will of the people, pays whatever price is necessary to obtain the
loyalty of the security forces and sets about eliminating rivals to
consolidate himself.


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Army, Chinese form private military companies

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:10

Faith Zaba

THE army is now running private joint-venture companies in the agricultural
and mining sectors with Chinese businesses which will be run on a commercial
basis.
In a recent interview with the Zimbabwe Independent, Commander of 3 Infantry
Brigade in Manicaland, Brigadier-General Douglas Nyikayaramba, who chairs
the agricultural production companies, said the Zimbabwe Defence Forces
would soon officially launch the private military companies.

“We can’t just be crybabies. We need to find innovative ways of overcoming
the challenges the country is facing,” he said.

Nyikayaramba added that: “Besides empowering our farmers, besides ensuring
that there is productivity and coming up with mitigatory measures that can
avert conflict in our country, we are also ensuring that the country is
liquid because there is a lot of money that is coming in to fund these
projects from our strategic partners. We are contributing in a very big
 way.”

He, however, refused to delve into the mining companies, saying there is
another top general responsible for that operation.

Nyikayaramba said the agricultural production companies would be operating
on a commercial basis and would export their produce to the region.

“We are putting on the table in terms of the joint ventures our land and our
skills — that is human resources. Our friends are coming in with the money
and equipment. The joint venture is a 50% share ratio,” Nyikayaramba said.

He said they would then pay a dividend to the state, which is the main
shareholder.

“We decided that we were not just going to sit and watch from a distance. To
us it was just going to be a recipe for disaster in future. We wanted
sufficient food to be produced in the country and a solution to ensure that
we are able to feed the whole population,” Nyikayaramba said.

“As you are aware — a hungry nation is an angry nation — and that can become
a precursor for any potential conflict, be it intra conflict or whatever
conflict that you might have. The commanders sat down and decided that we
needed to put some intervention so that we can be able to assist our farmers
to increase their productivity on their farms and by so doing enhance
production and thereby avert possible conflicts.”

He said their objective in setting up the companies was to win a war without
having to fight one by making such economic interventions.

Nyikayaramba said they would target idle land which was given to farmers,
who due to lack of funding were unable to fully utilise their land. In turn,
the resettled families would have a stake in the joint ventures.

He said the farmers would provide labour and be given a share of the
profits, calculated on the basis of the value of their pieces of land.

Nyikayaramba said they were targeting areas which concentrated mainly on
maize production and turning them into cotton growing farms.

“The critical intervention that we had to come up with, seeing to it that
government had no capacity after forming the inclusive government, was to
look East by way of creating joint ventures, private companies that go into
the business of carrying out farming activities but using idle land which
our farmers have. Our farmers then become part owners of that joint
 venture,” he said.

Nyikayaramba said currently there were several companies operating in
Midlands, Manicaland and Mashonaland West provinces.

He said one of the companies was running a pilot project in Mashonaland West
and another in Midlands.

Nyikayaramba said in the coming season, they were going to increase the
hectarage under cotton to 100 000 ha and then to 200 000 ha next year.
“We are also responsible for marketing that cotton and exporting it so that
we get revenue.  We also want to ensure that we break that cotton monopoly,
to give our farmers the correct price for their quality of cotton,” said
Nyikayaramba.

He said the other agricultural production company is based at Arda Assisi
farm in Zvimba, which is a demonstration project, assisting farmers within a
radius of 150 kilometres.

“The idea is to retain the rural dimension of Arda, which is to assist rural
farmers with agricultural development. This is why we based it there as a
demonstration project in Mashonaland West.

“We are also operating another joint venture at Chinhoyi University. There
are 30 tractors, 10 combine harvesters which have just arrived from China
and several planters. People think it is government mechanisation programme,
but it is not. It is a private military company - a joint-venture project,”
said Nyikayaramba.

He said they were also looking at getting large farms of at least 3 000 ha,
which were allocated to A1 farmers. They would build modern houses around
the farms, leaving each household with one hectare each for personal use.

Again, the military would use the farmers as labourers and pay them a
certain profit-sharing ratio, according to the value of their
land.

He said they were also planning on setting up another company that would
focus on sugarcane production in the Zambezi valley and another to go into
fisheries and livestock production.


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Abuse fears as Zanu PF seeks youth service revival

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:25

Wongai Zhangazha

IF ordinary Zimbabweans were asked to define the national youth service,
terms such as “green bombers” and “Zanu PF militia” would come to mind.
In an ideal society the national youth service is uniquely suited to
effectively address many of the social issues facing young people in a
country, such as academic underachievement, the lack of training
opportunities for young people and their escalating trend toward anti-social
behaviour.

The programme is meant to contribute quality personnel at the entry level to
public and private organisations as well as to tertiary institutions.

This type of model has worked in countries such as the US, Jamaica, Kenya,
Nigeria, Germany, Denmark, Malaysia and Mexico, but in Zimbabwe youths are
trained on a politically partisan basis.

Instead of being oriented with life skills, youths enrolled at the Zanu PF
manned training camps are schooled in intolerance and violence toward
opponents.

Graduates of the programme have earned global notoriety and are widely
associated with all afflictions Zimbabwe went through in last decade.

When the youth service programme was initially suggested, Zimbabweans were
made to believe that it was premised on five core values, which were to
promote national identity, unity, oneness, patriotism, self-reliance,
discipline and vigilance against crime.

The nation was told the programme would impart the youths with productive
work culture through on-the-job experience and meaningful exposure to the
world of work.

But Zimbabweans were exposed to the brutality the 80 000 youths, who
graduated between 2001 and 2007, were trained in. The training centres were
officially closed in 2007 owing to financial constraints.

Youths have expressed interest in participating in a national youth service
training programme that seriously practises self-reliance, entrepreneurship
and imparts the true history of Zimbabwe without disseminating Zanu PF’s
ideology and promoting marginalisation as an ideal way to empower them.

This follows plans by Youth Development, Indigenisation and Empowerment
minister Saviour Kasukuwere to reintroduce the national youth service this
year.

The proposal awaits cabinet approval.

In a document titled “National Youth Service Training Programme in Zimbabwe”,
Kasukuwere proposes the immediate implementation of a massive training of
youths from pre-school to tertiary institutions.

The document says the programme should be re-launched to reorient young
people so that they learn about Zimbabwe’s “revolution, pre-colonial
political systems, colonialism, Chimurenga wars and the post-colonial state”.

His aim is to churn out 300 000 graduates annually.

Kasukuwere says the youths would be recruited voluntarily and trained to
acquire survival skills and do community service, while preaching “peace,
tolerance, justice, equality and democracy”.

He says the ministry would “use its structures, district and ward youth
officers, schools, churches, clubs and communities” to ensure the programme
succeeded.

Social commentator David Takawira supports the idea of national youth
service only if it embodies the true virtues of patriotism and remains non
partisan.

Takawira said: “An ideal national youth training is one that personifies
true virtues of patriotism at the same time equipping young people with
essential knowledge, skills and competencies for national development and
sustainable livelihoods. But equally important, the training should not be a
para-militia hoax nor should it be exploited as machinery for propagating
hatred.”

According to the National Association of Non-Governmental Organisations
(Nango) report titled “A Critical Review of The National Youth Service
Programme in Zimbabwe 2011”, the weakness of the service was that language
used is subject to manipulation.

Recruitment was done through Zanu PF district party offices, the curriculum
discriminated against marginalised and other interest groups, there was a
militarised style of running the programme, widespread allegations of sexual
and drug abuse, lack of funding and the absence of exit opportunities.

Innocent Katsande of Zimbabwe Youth Council, which represents over 200
organisations, said politics should stay out of the national youth service.

“Youths spoke extensively of demilitarising the national youth service and
the need of some form of liberty. They were totally against being treated
like a military academy. Most importantly, they want it to focus seriously
more on capacity building skills and sexual reproductive health. They want
real survival skills that are current to real life issues and to enable them
to participate, and for it to incorporate Zimbabweans from all backgrounds,”
Katsande said. Nango recommends that an independent commission to facilitate
the delivery of the curriculum with guidance from the two education
ministries should be set up.

“Experts are supposed to be identified by the commission to design and
deliver the publicly accepted curriculum with input coming from young people
and other stakeholders. There is also need to introduce productive
activities such as agriculture at training centres which will ensure supply
of produce as well as income for the camp.”


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Scepticism persists over full GPA implementation

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:17

Paidamoyo Muzulu

WHEN negotiators dutifully announced that the coalition government partners
had struck a deal on the timeframe leading to fresh elections as agreed
under the GPA, the nation must have reacted with general scepticism.
In the 30 months that Zanu PF and the two MDC formations have been working
together, the only part of the GPA the three parties have fully implemented
is legalising their stay in office.

None of the 21 out of the 27 outstanding issues has seen the light of day.
Among the outstanding issues are the constitutional reforms, media reforms,
electoral reforms, security sector reforms, land audit, and repeal or
amendment of Aippa and Posa.

Deputy Prime Minister Arthur Mutambara wrote a letter to the Sadc-appointed
facilitator and South African President Jacob Zuma on August 5, 2010
appraising him on the GPA process, which included implementation timeframes
for outstanding issues that had supposedly been thrashed out.

According to Mutambara’s correspondence, the three principals reviewed the
implementation matrix for agreed GPA issues at a meeting on June 8, 2010.
Among the issues the principals agreed to implement within a month from
August 4, 2010 are media reforms which call for regularisation of the
Broadcasting Authority of Zimbabwe board, appointment of a new ZBC board and
constituting the Media Trust.

It was also agreed that Jomic and a Cabinet Re-engagement Committee would
deal with the external radio stations issue by appealing to foreign
governments hosting them to shut them down.

A Land Audit Commission should have been set up within a month while a land
Tenure System guaranteeing security of tenure and collateral value of land
should have been done within two months.

The issue of ministerial mandates dealing with the assignment of Acts,
establishment of the National Economic Council and national heroes should
all have been resolved by the end of September 2010.

Constitutional commissions to expedite the regularisation of the Zimbabwe
Human Rights Commission and appointment of the Anti-Corruption Commission
were to have been implemented immediately according to the letter Mutambara
wrote to Zuma.

Amendments to the Electoral Act should also have been completed as their
timeframe was agreed as immediate.

However, not a single agreed issue and timeframes forwarded to Zuma has been
implemented.

The Livingstone Sadc Troika in March gave the negotiators a fresh impetus to
return to the negotiating table and thrash out GPA implementation
timeframes.

With the assistance of Zuma’s facilitation team, the negotiators resumed
their talks and cobbled up a timeframe leading to fresh elections.

However, the tired negotiators’ roadmap still has to be endorsed by the
three principals, further eroding any hopes of it being done this year.

Crisis Coalition in Zimbabwe chairman Jonah Gokova was sceptical of the
coalition partners’ sincerity in implementing the agreement.

“Our experience with the GPA negotiations has shown that Zanu PF has no
qualms with giving in to certain concessions but dithers on implementation,”
said Gokova. “We can celebrate the agreement, but we should expect problems
in the implementation. We should find ways to manage Zanu PF from dragging
its feet to make sure things happen.”

Gokova warned that there were elements “against full implementation of the
GPA” and it was incumbent upon Zimbabweans to find ways to manage them.
Gokova’s comments come in the wake of recent statements by senior security
officers denigrating leaders from the MDC formations. Prime Minister Morgan
Tsvangirai challenged the officers to retire and join politics.

Such pronounced tensions between the army and the MDC may spell doom for
free and fair elections after the orgy of state-sponsored violence that
accompanied the 2008 presidential runoff.

Constitutional Law expert and National Constitutional Assembly chairman
Lovemore Madhuku said there was nothing to celebrate as the negotiators were
continuing on their merry-go-round.

“There is nothing new in what they said,” said Madhuku.

“They did not produce any timetable leading to fresh elections. It’s only
timeframes and we know they will not implement anything when one examines
what has happened in the past. They simply said everything hinged on the
constitutional review process which in itself is not clear when it will be
brought to an end,” he said.

Media Centre director Earnest Mudzengi believes the negotiators have only
agreed on peripheral issues and skirted around the core issues such as
security sector reforms.

“I think they will implement the minimal reforms they agreed on but without
security sector reforms and re-composition of the Zimbabwe Electoral
Commission, the changes will not produce an undisputed election result,”
Mudzengi said.

South Africa and Sadc have played a crucial role in keeping the partners on
the long and arduous road to reforms meant to pave the way for fresh
elections.

Relations between the coalition partners reached their lowest ebb in March
when the two MDC formations complained to Sadc about the resurgence of
state-sponsored violence against their supporters and selective application
of the law by police following the arrest of opposition leaders.

This was in the aftermath of the incarceration of leading opposition
negotiators Moses Mzila Ndlovu and Elton Mangoma on trumped up charges. The
Sadc Troika on Politics, Defence and Security took the extraordinary
decision to save the wobbling coalition from collapsing by calling for the
immediate cessation of violence and political harassment, use of hate speech
and any other action that contradicted the letter and spirit of the GPA.

The dithering in implementing the GPA in full affirms statements by senior
officials in the coalition government that the status quo would continue
until 2013.

Deputy Premier Arthur Mutambara has on several occasions told parliament
that the GPA and coalition agreement has no expiration date but would
continue until the next election.

His argument is that politicians should give the economy time to recover and
the full implementation of the GPA to create a conducive environment for
holding a credible election.

For now the country looks resigned to its fate, ululating and waiting for
the politicians to deliver. The wait is getting longer and the patience is
wearing off to the extent that the populace is “normalising” the abnormal.


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Goche defends tender award to SA firm

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:16

Nqobile Bhebhe

TRANSPORT, Communications and Infrastructural Development minister Nicholas
Goche has defended the awarding of the multi-million dollar Plumtree-Mutare
highway modernisation deal to a South African firm without going to tender.
Goche told the Zimbabwe Independent last week that there was no need for the
State Procurement Board to float a tender for the mega project because the
contracted firm was a highly reputable company.

South Africa’s construction and engineering entity Group Five was awarded
the contract to refurbish the Plumtree-Mutare road at an estimated cost of
US$206,6 million without going to tender and raising eyebrows within
government.

The project entails the upgrading of three artery roads: the
Plumtree-Bulawayo, Bulawayo-Harare and Harare-Mutare trunks along with new
tolling points which would also be constructed to replace existing toll
gates which Goche described as “shells”.

“Why tender? If someone brings his own money to do something, do you take
them to tender and include people with no money in the process?” asked
Goche.

Goche said the highway is not undergoing dualisation but modernisation,
rehabilitation and expansion of the Harare-Plumtree and Harare –Mutare
routes.
He confirmed that the Zimbabwe National Road Authority( Zinara)  and Group
Five were finalising terms of a joint venture saying “all the documents are
in order after which the actual work will start”.

The project, set to cover about 800 km of road, involves the rehabilitation
of some road sections, resealing, road markings and road furniture.

Group Five entered into an agreement with Zinara and set up a special
purpose vehicle called Infralink, which is owned 70% by the principal
contractor and 30% by Zimbabwe’s road authority, to implement the road
construction and modernisation projects.


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RBZ should recover US$2m given to AMG — Parly

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:15

Paidamoyo Muzulu

THE Reserve Bank of Zimbabwe (RBZ) should recover the US$2 million it gave
AMG  Global to acquire a 100% stake in T&N (UK), which holds the Shabanie
Mashaba Mines Holdings share warrants registered in the UK after its failed
acquisition bid in the English courts, parliament heard on Wednesday.
SMMH is owned by embattled South African based businessman Mutumwa Mawere.
The company was put under administration by Justice minister Patrick
Chinamasa in 2004 after Mawere was accused of corruption and externalisation
in relation to mining receipts from the two mines.

Chinamasa used the contentious Reconstruction of State Indebted and
Insolvent Act to wrestle control of Mawere’s sprawling empire whose flagship
was the Shabanie and Mashaba Mines.

The minister had a flopped bid to gain possession of SMMH share warrants in
the UK after securing US$2million from the central bank to purchase SMMH
share warrants from T&N which holds them as surety against Mawere’s debt.

Mines and Energy Portfolio Committee chairman Edward Chindori-Chininga
recommended that the “RBZ should collect the funds (US$2 million) advanced
to AMG to acquire T&N rights in respect of SMMH as AMG lost its bid to gain
control of SMM Holding in the UK Courts and surrendered the Bearer Share
Warrants in accordance with the UK court decision”.

The committee has asked Chinamasa on three occasions to avail the share
warrants proving the purchase of the said shares, but he has failed to do so
despite repeated assurances to the committee.

“Three letters signed by the clerk of parliament were delivered to the
minister and signed for but there has not been any response to date,” the
report said.
Chindori-Chininga’s committee also recommended that the executive does a due
diligence audit of SMM and its associated companies after it was placed
under reconstruction since the administrator seems to have stripped the
companies of assets in an opaque manner.

“The executive should carry out an audit specifically looking at: disposal
and sale of assets claims, mining equipment and material from AA mines,
disposal and sale of associated companies, legal and professional fee costs
that relate to payments made to the administrator and legal advisor under
Reconstruction of SMM.”

State-appointed administrator Arafas Mutausi Gwaradzimba is alleged to have
disposed of mining claims, houses and other mining equipment belonging to
SMM and illegally paid himself substantial amounts.

“The administrator had disposed some company assets such as mining claims
(gold claims) and several subsidiary companies of SMM whilst Mawere was
still under specification. During the enquiry, the committee came across
information relating to the application of the payments that were made in
Zambia to the administrator Gwaradzimba by TAP Building Products, a company
registered in Zambia that was placed erroneously under reconstruction only
to be removed after a court challenge by African Resources Ltd, the
shareholder of the company,” the report said.

Gwaradzimba was paid US$345 000 and made payments of about US$700 000 to
(Edwin) Manikai and other TAP board members.

Shabanie and Mashaba mines have since collapsed under the administration of
Gwaradzimba and the mines are flooded. Employees have gone for years without
pay and no investor seems interested in investing in the contested mines.


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Storm over Constituency Fund reports

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:12

Brian Chitemba

BULAWAYO MPs have failed to produce reports on the use of the Constituency
Development Fund (CDF) amid a storm over use of the fund by legislators and
councillors.

Only one of the province’s 12 lawmakers could account for the public funds
as calls for investigations into the abuse of the fund grow louder.

Permanent Secretary in the Ministry of Constitutional and Parliamentary
Affairs Virginia Mabiza and a team of accountants descended on Bulawayo this
week to follow up on the use of the fund following widespread complaints
that some MPs abused the money.

All MPs were asked to produce reports showing detailed use of the money, but
only Makokoba MP and Deputy Prime Minister Thokozani Khupe submitted a
report. The other MPs failed to submit reports and have been given a week to
comply.

The reports would pave way for an audit on the use of the CDF in Bulawayo
where development has remained a pipe dream.

Finance minister Tendai Biti set up a CDF for developmental projects whereby
each constituency would receive US$50 000. MPs were reluctant to apply for
the fund, with some taking up to six months, resulting in Constitutional and
Parliamentary Affairs minister Eric Matinenga begging them to apply so they
could sponsor community developmental initiatives.

According to sources who attended the meeting, Mpopoma MP Samuel Sandla
Khumalo, Samuel Sipepa Nkomo (Lobengula), Reginald Moyo (Luveve), Seiso Moyo
(Nketa), Senator Gladys Moloi and Felix Mafa Sibanda (Magwegwe) — all of
MDC-T, had no proof of how they used the CDF. Thabitha Khumalo of Bulawayo
East did not attend the meeting.

Sipepa Nkomo is one of the MPs who was sucked into a bitter wrangle with
residents’ associations and councillors, who accused the legislator of
abusing the fund. He denied the allegations saying he bought chairs and
books for schools in his constituency.

The Bulawayo Progressive Residents Association has called on the
Anti-Corruption Commission to investigate the alleged misuse of the CDF.

Matinenga said some MPs had not submitted returns because they were ignorant
on how to account for the money but the Bulawayo meeting was part of efforts
to conscientise the lawmakers on public funds accountability.

The CDF is administered by a committee of councillors, chiefs and senators
who are ex-officio members.


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Jonathan Moyo in bid to gag the Independent

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:11

Wongai Zhangazha

ZANU PF politburo member Jonathan Moyo has threatened to take legal action
to gag the Zimbabwe Independent from republishing articles he penned for the
newspaper attacking President Robert Mugabe and his party.
In a letter to this newspaper through his lawyers Hussein Ranchhod & Co on
Wednesday, Moyo said republication of his articles was unlawful.

“We refer to the article by our client titled “Mugabe puts nation’s survival
at great risk” published in your newspaper dated 8 July 2011,” the letter
read. “The copyright in this work vests with our client and reproduction
thereof can only be done with express permission.

“This permission to publish as you have done was not sought nor granted and
as such the republication is unlawful. We hereby require an apology for your
action together with an understanding not to further infringe his copyright
within five days of this letter,” wrote Moyo’s lawyer Terrence Hussein.
“Should we not hear from you, we will institute proceedings for damages
without further notice.”

The threat follows republication of an article Moyo wrote for the Zimbabwe
Independent in 2006 attacking Mugabe as a national security threat.

The Editor-In-Chief of Alpha Media Holdings (AMH), the publishers of the
Independent, NewsDay and The Standard, Vincent Kahiya, yesterday said:  “I
was editor of the Zimbabwe Independent when Moyo submitted articles to me
for publication. The publication of the op/ed was by mutual consent and
there were no special provisos around copyright. It is curious that Moyo now
seeks to stop us from republishing articles which he personally delivered to
the newsroom or sent by courier.

“As a newspaper, one of our major tasks is to record history. Moyo’s
articles are an important part of our history and attempts to use the law to
block us from publishing them is tantamount to airbrushing that part of
history. Moyo has often defended his sharp political commentary over the
years and should continue to do so even in changed political circumstances.

“The quest therefore to gag the Independent is akin to disowning a part of
himself. We will not lend ourselves to his self-serving project by yielding
to his demands.”

The Independent becomes the second newspaper to be threatened by Moyo to
stop republishing his articles on Mugabe and Zanu PF.
The former Information minister is claiming US$60 000 in damages from the
Daily News for reproducing his articles.

Moyo is arguing that the Daily News immediately stop publishing his archived
content because the paper does not have his authorisation.
In its defence, the Daily News says the articles are publicly available on
Moyo’s blog, prof-jonathan-moyo.com.

Constitutional law expert Lovemore Madhuku yesterday said the issue did not
need a magician to understand the Copyright Act

Madhuku said: “It’s a political line not a legal line. What he wants to do
is to silence newspapers, which is what he is good at threatening. You
should understand that copyright of books is different to copyright of
newspapers.

“The moment he agreed that his work be published by a newspaper he gave up
his rights, unless he had earlier done a special negotiation with the
publisher. If it was surely a copyright breached then why is he demanding an
apology? Once your copyright has been violated there is no time for an
apology but just dealing with the law.”

Senior Associate Editor at AMH and Zimbabwe National Editors Forum chairman
Iden Wetherell said newspapers should be free to publish material that is
already in the public domain, particularly when it was originally published
in one of their own publications.

“Under the terms of the GPA we are currently campaigning to open up the
media, not muzzle it,” he said. “Newspapers need to stand up to threats of
any sort.”

Media activist Ernest Mudzengi said Moyo’s letter to stop the republication
of his articles was a sign of desperation.

“I think this man Jonathan Moyo has become desperate and his letter is part
of the desperation. These articles have been published before in the
Zimbabwe Independent and there is nothing wrong with republishing them. He
is simply showing his cowardice and threatening newspapers.”

Media Institute of Southern Africa director Nhlanhla Ngwenya said Moyo’s
letter was another attempt to stifle the freedom of the press.

“It is a clear attempt to block information that he dims distasteful and an
indirect way to intimidate the media into self-censorship,” he said.


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Time Bank offers govt US$5 billion facility

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:13

Reginald Sherekete

TIME Bank of Zimbabwe Ltd has submitted an innovative proposal for a US$5
billion syndicate loan facility to government to pay restive civil servants
and settle Zimbabwe dollar deposits trapped in the financial system.
The bank, which has re-invented itself from being a commercial bank to an
investment bank, submitted the proposal to the Ministry of Finance last week
on the strength that the facility would resolve some of the country’s
multifaceted economic challenges arising as a result of the introduction of
a multi-currency system in February 2009.

The 25-page proposal in the possession of the Zimbabwe Independent was sent
to Finance minister Tendai Biti’s office and copied to Nelson Sambureni, the
chairperson of the National Joint Negotiating Council. The council comprises
of government proxies and representatives from all the civil servants’
unions.

The proposed syndicate loan is based on the creation of what Time Bank
called the 4th money (near money), which is part of the proposed M4 category
of money. The 4th money created by the bank will be additional money supply
from intended time deposits and will be linked to gilt-edged bonds offered
by government on the back of the loan. Technically, 4th money is the
securitised credit to government which is converted into time deposits with
banks.

Currently, Zimbabwe has three distinct categories of money — M1 (liquid
money comprising notes, coins plus all demand deposits), M2 (comprising all
the elements in M1 plus all other short-term and medium-term deposits with
banks with a tenor of less than 90 days) and M3 (combination of Ml, M2 plus
all long-term deposits with banks with tenors less than six months).

M4 will utilise the function of money as a store of value and standard of
deferred payments much more than its function as a medium of exchange.

The syndicate loan targets payment of better salary increases across the
board to the country’s over 220 000 civil servants over a two-year period as
well as the settlement of Zimbabwe dollars deposits that were trapped in the
financial system when the country’s economy migrated into a multi-currency
regime.

According to the bank, the objective is to competitively remunerate the
civil servants without recourse to the risk-averse multilateral lenders and
the facility would go a long way in lessening the government’s burden.

Civil servants have since dollarisation been threatening to strike over poor
salaries, averaging about US$150 per month, US$350 less than the poverty
datum line. Government has been pleading bankruptcy, saying its revenues
were inadequate to meet the workers’ otherwise genuine demands.
The proposed syndicate loan, if accepted, would rope in government, a
syndicate of banks led by Time Bank, Zimbabwe dollar depositors and civil
servants.

Under the loan, the supplier of goods or services becomes the creditor or
lender and the resultant supplier credit is securitised. The supplier credit
loans are mobilised from suppliers of goods and services, including
suppliers of labour services and such loans are then advanced to government.
Time Bank will act as a lead bank and mobilise participating banks to
securitise the government debt and trade it on the inter-bank market,
thereby improving liquidity on the inter-bank market, which is currently
depressed.

To activate the process, according to Time Bank, the civil servants or the
Zimbabwe dollar depositors would be required to open a time deposit account
with any of the participating banks.

After a syndicate loan has been signed, the Zimbabwe dollar depositor or the
civil servant would have his/her account credited as part of the settlement
plan. The said credit would constitute disbursements to which the government
will acknowledge its indebtedness by issuing Promissory Notes (Treasury
Bonds) physically or electronically to Time Bank.

Inadvertently, the syndicate loan becomes the financiers while the
government becomes the debtor. In other words, the government would have
fully honoured its obligations to the civil servants and Zimbabwe dollar
depositors once this has been done and will now be indebted to the
syndicate.

The terms of the syndicated loans include a tenor period of 10 years with
interest payable half-yearly at an interest rate of 8% per annum.  The loan
is subject to an arrangement fee of 2% and an annual syndicate management
fee of 0,5%.

A sinking fund will be set up by government with the lead bank where
deposits will be made into the account over a 10 year period in preparation
for settlement of the 10 year treasury bills/ bonds. The fund will earn
interest of 5% per annum and can be used to redeem TBs should a holder opt
for early payment.

Civil servants or the Zimbabwe dollar depositor would be able to withdraw
from the facility as and when cash becomes available at each bank. But
pending such withdrawal, the beneficiaries would earn a 5% interest per
annum on their balances.

The bank said the syndicate loan is the only practical solution towards
rewarding civil servants as well as restoring property rights of people who
have not been paid their Zimbabwe dollar deposits in banks.

“In other words, the solution restores the property rights of big and small
investors, including ordinary people who may be vulnerable during the
implementation of various economic measures. Hence the solution improves
confidence in the banking sector and the country in general,” the bank said
in its executive summary.

“In the final analysis, it may result in more cash circulating in the formal
economic sectors as ordinary people deposit more money in banks instead of
keeping it in the informal sector.”

The bank described the syndicate loan as feasible, affordable and
appropriate innovation that can stimulate the country’s economy.

“People who can supply their goods and services on credit, in an illiquid
environment are the source of economic turnaround, and the syndicate loan
harnesses such efforts by ordinary people, ordinary creditors, into a big
positive economic force,” said the bank as part of its recommendation.

In order to avoid the emergence of a parallel market, Time Bank proposed
that the resultant treasury bonds should be issued to banks only and they
should not be issued to non-banks or members of the public.

Time Bank said the loan will enable growth with equity. Civil servants, the
bank said, could use their time deposits as security for personal loans.


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CandidComment: Failure of Medium Term Plan would be no mystery

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:24

THE Mystery of the Vanishing Diamonds Money sounds like a title that
Franklin W Dixon, author of The Hardy Boys investigative series, would pen
were he alive to come to Zimbabwe. This will become clearer as we progress
with our article, if it isn’t already.
The Zimbabwe Medium Term Plan launched last week will be a talking point for
quite some time to come for the obvious reason that much of the future of
Zimbabwe’s economy hinges on its implementation. We draw your attention once
more to the keyword, implementation. As we have mentioned before, Zimbabwe,
in spite of the substantial brain drain it has suffered over the last
decade, is still not short of a critical mass of intellectuals and academics
that can come up with sound strategies to carry the country forward. But
crafting strategy and formulating policy is one thing, and implementing the
policy or stratagems quite another.

The acid test of the unity government, in case its actors don’t realise it,
is the successful turnaround of this economy. Here’s an opportunity for the
current government to transform from being a government of national
disunity. Deputy Prime Minister Arthur Mutambara pointed out that there was
need for political will, if this policy is not to join its colleagues in the
garbage cans of this country. However, one sees the policy as looking at too
many relatively farfetched preconditions being mentioned as the pillars of
its success, while underplaying one of the most obvious ones, the mineral
resources, particularly diamonds.

There is much talk about attracting foreign direct investment, which in my
view has always been a trickle, and about attracting lines of credit. As for
lines of credit, we should remember that we are somewhat robbing Peter to
pay Paul. By this I mean the country is already saddled with a US$9,3
billion plus debt and if our politics come in the way again, we may not have
the opportunity to value add to repay Peter. Thus we may end up in deeper
debt.

Enough of the scepticism. Nevertheless, this brings us to the more important
point of our resources coming to our aid. Is it a good coincidence that at
the time we’re supposed to be getting out of our worst economic downturn,
suddenly there is a solution in the form of alluvial diamonds? For some of
us lesser mortals this is a God-given incidence, and we should take
advantage of it. The MTP says we may produce more than 121 million carats by
2015, from a base of eight million currently. Sources in the Chiadzwa
diamond fields say this can translate into US$100 000 - US$200 000 a month
in the current year, from the six companies that currently operate in that
area.  We shall not work out the mathematics of monetary output of these but
suffice it to say, our debt can have been wiped out easily by the end of the
MTP.

But this all appears to be wishful thinking as there appears to be no real
step towards resolving the diamond issue. The KP process will keep going
backwards and forwards for as long as there is no uniform statement on this
resource from the GNU. The mere fact that Zanu PF and the MDCs are fighting
over the diamonds already suggests that there is already conflict over the
diamonds. In our analogy we still need Frank and Joe Hardy to solve the
mystery of the proceeds of the diamonds that have already been mined. And
yes, Zimbabwe’s enemies in the KP process, real or imagined, can easily
point to this fact.


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Editor'sMemo: We’ll not be intimidated into silence!

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:21

DONTOPEDALOGY is a term which was coined by Britain’s Prince Philip meaning
a “talent for putting one’s foot into one’s mouth”.
We had a classical demonstration of it last week by former Information
minister Jonathan Moyo. He is gifted with putting his foot into his mouth!

In a long, intellectually bankrupt article in the publicly-owned Sunday
Mail, Moyo went ballistic accusing Alpha Media Holdings (AMH) and myself in
particular of being Western-funded and corrupt after we dared challenge his
unsubstantiated assertion that Prime Minister Morgan Tsvangirai was a
“national security threat”.

Moyo was also angry because we had exposed his duplicity by reproducing an
article he wrote in the Zimbabwe Independent in 2006 accusing President
Robert Mugabe of putting the “nation’s survival at great risk”.

Clearly motivated by anger and malice, Moyo made scurrilous accusations
against me, AMH and other private media players without good reason.
Needless to say, all Moyo’s claims were false and malicious, but we will not
sink to his level and subject readers to a mudslinging contest. All we can
say is if Moyo wants to know whether we are “A-Level school dropouts” or not
he must ask the editor of the Sunday Mail who published his article. He
knows us better which is why it is baffling that he could publish lies when
he knows the facts very well.

In fact, it became clear during the course of the week what Moyo’s problem
was. Reading our Editor’s Memo last week, it would have been difficult to
understand what had provoked Moyo, not until his lawyers this week sent a
letter to us demanding that we stop reproducing his articles which we first
published to start with!

While lawyers are dealing with the issue, we would like to state clearly and
categorically we won’t be intimidated into silence by anyone.

For the record, as the Independent we hold no brief for anyone, any
political party or organisation for that matter. We don’t even hold a brief
for our publisher — our paymaster — on his personal political views! We hold
ourselves accountable only to our readers and people of this country. It is
refreshing that our publisher agrees with this.

It has been and will remain our resolve as a newspaper to be a platform of
good journalism where competing views from all stakeholders are given space
to “inform, educate and entertain” — to use that journalism cliché — our
various publics. We are a market place for ideas. We will continue as we
have done in the past to publish all sorts of stories and shades of opinions
guided by our professional ethics and standards.

Moyo is one of the columnists who have written for the Independent over many
years. Despite his vitriol, we gave him an opportunity to write for us when
he had something useful to say. We will continue to carry stories and
opinions across the political and social divide.

At the Independent we have an open-door policy.  Without fear or favour, we
will continue to write the good, the bad and the ugly of the Zimbabwe story
to deepen press freedom as well as political and civil rights as part of our
contribution to building a democratic and prosperous Zimbabwe.


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IndependentComment: Wicked witch-hunt

http://www.theindependent.co.zw/

Friday, 15 July 2011 08:19

SOMETIMES it’s not easy for editors to write with feigned calm and
dispassion on stirring subjects such as accidents, human rights abuses,
rape, war atrocities or even political witchhunts against journalists.
However, journalism ethics demand a professional approach no matter how
emotive the issue.

Last Sunday Zanu PF political recidivist (he has learnt nothing and
forgotten nothing from his ugly past) Jonathan Moyo, a notorious media
hangman, scaled new heights of vituperation against the private press,
particularly the Zimbabwe Independent, its editor and journalists.

Moyo’s abusive piece — with a stream of consciousness narrative — was
pathetic. It claimed, for instance, the Independent was part of “sponsored
regime change media”; editors and journalists were “high school dropouts
without A-Level”; there was a three-million pounds anti-Zimbabwe media
campaign; journalists were “brown-envelope seekers”; and there was
unprofessional and unethical journalism in the independent media funded by
the West.

The 2 827-word rambling tirade read like “a tale told by an idiot, full of
sound and fury signifying nothing”.

Moyo’s gripe was thinly-disguised: He was angered by the inconvenient
reproduction of his 2006 acerbic article in the Independent lambasting
Mugabe. He was also furious his threadbare opinions on “national security”
had been crushed.

In order to justify his grotesque views and hate-mongering, Moyo resorted to
despicable tired propaganda techniques including ad hominem (attacking one’s
opponent personally instead of their argument), ad nauseam (tireless
repetition of a line to get it accepted as truth), false dilemma (you’re
either with us or against us), flag-waving (justifying awful actions on
grounds of patriotism), name-calling, obfuscation, half-truths and even
outright lying.

Moyo, who has an exaggerated sense of self-importance and pretends to be the
most educated and omniscient Zimbabwean when it is clear this is wishful
thinking, had the temerity to call journalists “A-Level drops outs,
uneducated, ignorant, unqualified, inexperienced etc. Yet he knows this is
cheap nonsense.

Editors and journalists are employed on the basis of their education,
training and experience. The editor of the Sunday Mail, where Moyo wrote his
appalling diatribes, knows this very well. Moyo, who ruined the public
media, shouldn’t masquerade as a media expert. He is not qualified to
lecture us simply because he is not an authority or a professional. He must
talk about things he knows about and not just waffle hysterically.

What is the bigger picture in all this? Moyo wants a throw-back to the era
of political repression, newspaper closures and hounding of journalists. He
is on a witch-hunt against journalists exposing his shameless hypocrisy.

But journalists won’t be intimidated by this raging political bully. That is
why at the Independent we will continue, guided by professional and ethical
standards, to expose political hypocrisy, state brutality and abuse of
power, among other evils, no matter what Moyo says. He can rant and rave all
he wants but we won’t be deterred.

Moyo wants the media shackled. He is coming up with a reductionist and
simplistic comparison between what is happening at News International
(closure of News of The World and the fallout) in the UK due to the
phone-hacking scandal and the situation here to throw journalists into a
chamber of horrors again.

Moyo, who has pathological narcissism and delusions of grandeur, is in a
desperate bid for power and trappings of office.

In that regard, he is now even prepared to resort to revisionism and
bootlicking, claiming his criticism of Mugabe was “affectionate”. Does Moyo
think saying Mugabe is a liability or could lose an election to a donkey is
affectionate? Who is he trying to fool?

Moyo is trying to advertise himself as a super nationalist and patriot yet
he squandered by running away from the struggle an opportunity to fight and
leave a positive — not fascist — legacy. He demonises NGOs but worked for
the CIA-linked Ford Foundation where he left under a cloud of corruption and
fraud allegations. What sort of hypocrisy is this?

Unless he is a quack professor, Moyo should know there is a world of
difference between a chameleon and cockroach. He must not be intellectually
dishonest to settle scores. Doesn’t he know chameleon also describes “a
person who changes their behaviour or opinions according to the situation”?
(Oxford English dictionary). Who fits this description?

And how does Moyo confuse the phrase facing “political death” and a literal
death wish for someone when even those suffering from arrested intellectual
development would know the difference. After all has been said and done,
Moyo’s wicked agenda must be exposed and rejected.

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