2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27123-mpofu-misleads-nation-on-diamond-sales.html
Thursday, 01 July 2010 21:05
MINES minister Obert Mpofu,
already facing serious accusations from the World Diamond Council of lying
about the Chiadzwa diamonds, has got himself into further trouble by misleading
the public over cabinet’s position on the controversial issue, fiercely debated
by ministers this week.
Information obtained from
high-level sources shows that contrary to Mpofu’s claims in the state media on
Wednesday, cabinet did not approve the sale of the Chiadzwa diamonds. Zimbabwe
has stockpiled nearly four million carats of diamonds valued at about US$ 2 billion.
“Cabinet did not approve the
sale of Marange diamonds,” a senior government minister said. “The truth of the
matter is that the issue was referred to the cabinet committee on Chiadzwa. How
can cabinet approve the sale of the Chiadzwa diamonds when the KPCS (Kimberley
Process Certification Scheme) has not been concluded?”
The cabinet committee on
Chiadzwa includes ministers Tendai Biti, Welshman Ncube, Elton Mangoma,
Emmerson Mnangagwa and Mpofu.
Another minister said Mpofu was
“economical with the truth” in claiming cabinet had approved diamond sales.
“It’s not true that cabinet approved the sale of Chiadzwa diamonds. The issue
is still under consideration both by the cabinet committee and the KPCS.”
One minister said the principle
of selling was agreed to but the issue was referred to the cabinet committee to
clear remaining hurdles before renewed exports.
Mpofu was quoted in the Herald
on Wednesday claiming cabinet had approved the sale of the controversial
Chiadzwa diamonds which have triggered a global storm of protest and hectic
lobbying.
“It was clear from the meeting
that cabinet agrees with immediate sale of our diamonds,” Mpofu was quoted as
saying. “We need to come up with a mechanism of proceeding with this process.
The mechanism will be transparent and accountable.”
However, several ministers
asked about the issue this week said that was not true.
Local and international human
rights groups have been mobilising against the sale of the Marange gems which
they describe as “blood diamonds” because of alleged human rights abuses at the
Chiadzwa fields. They say human rights violations must end first and the
diamonds must be sold transparently for the benefit of the country, not
individuals.
The issue has also sucked in
big diamonds producers around the world, especially those under the KPCS.
A KPCS meeting in Tel Aviv,
Israel, last week ended in a stalemate over whether Zimbabwe could resume
diamond exports from the troubled Marange area. Mpofu and his delegation were
unhappy with the deadlock, while the civil society coalition working with the
KPCS welcomed the outcome.
The Tel Aviv meeting broke up
without agreement after through-the-night talks. However, Mpofu came home
claiming Zimbabwe had been allowed to sell its diamonds, an assertion rejected
by the World Diamond Council president Eli Izhakoff as false.
The Chiadzwa diamond debate has
also left cabinet deeply-divided. There have been several clashes over this
issue, including on Tuesday.
President Robert Mugbe and his
Zanu PF ministers say Zimbabwe must be allowed to sell because it has fulfilled
KPCS procedures, but Prime Minister Morgan Tsvangirai and Deputy Prime Minister
Arthur Mutambara and their ministers say all necessary procedures must be met
first before the sale of the diamonds.
Zimbabwe’s fate on whether to
sell the diamonds now through the KPCS would be decided at the World Diamond
Council meeting in St. Petersburg in Russia on July 14/15.
Izhakoff said there were
burning issues on the table for the meeting, mainly the Zimbabwe matter.
“Our industry will gather at
the World Diamond Council annual meeting to reconfirm our commitment to ethical
trading and to the eradication of conflict diamonds from our distribution
chain,” Izhakoff recently said.
“As the past year has
demonstrated, we will not be assembling in St. Petersburg simply to pay lip
service to the values upon which the organisation was founded. The ongoing
situation in countries like Zimbabwe and the dedication of our industry to
operate in a transparent and principled manner means that there are burning
issues on the table, which we will discuss and for which we will formulate
strategies.”
Efforts to get Mpofu’s comment
last night were in vain as he was not answering his mobile phone. - Staff
Writer.
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27119-mpofu-slur-leaves-kp-further-polarised.html
Thursday, 01 July 2010 20:33
A LATE-NIGHT brainstorming
session in Tel Aviv to break a deadlock on the status of Marange diamonds
handed Zimbabwe’s Mines minister Obert Mpofu a golden opportunity to attack his
most vocal critics - while at same time leaving the Kimberley Process (KP) even
more polarised on the matter.
The case of arrested diamond
activist Farai Maguwu provided the Israel meeting with the twist that shifted
events. Apart from affecting Marange stones certification, Maguwu’s predicament
also left civil society organisations, Partnership Africa Canada (PAC) and
Global Witness, key NGO members of the KP, battling against bribery allegations
from Mpofu.
For Mpofu and many watchers,
the Israel meeting was expected to rubber-stamp green light recommendations
made by Abbey Chikane, a founding chairman of the organisation who was
appointed by the KP to monitor Marange diamonds. The KP is a joint government,
business and civil society group of 75 members formed to stem trade in diamonds
mined in conflict situations, or those used to fund conflict and controls over
90%of the alluvial diamond market.
The meeting in Tel Aviv
centered on Zimbabwe and turned out to be a battleground over Marange diamonds
after Chikane’s recommendations for the immediate export of the controversially
mined stones split KP members.
From the outset of the debate
on Tuesday, it emerged that Chikane’s report would struggle for approval after
Canada, the United States, Australia, representatives of the European Union and
civil society groups such as Partnership Africa Canada (PAC) and Global
Witness, raised objections. Information from the meetings indicates that the
arrest and subsequent ill-treatment of Maguwu came back to haunt Zimbabwe,
whose fight for the certification of Marange diamonds was near after Chikane’s
recommendations. Because KP decisions require consensus, mediation and
last-minute efforts to avoid a historic KP stalemate became fraught after
Western nations and civil society dug in their heels on rejection of Chikane’s
recommendations.
“Civil society groups were
adamant that Marange diamonds would not get KP approval at a time when one of
their own, Maguwu, was still in prison and struggling with legal fees,” a
source familiar with the meeting told the Zimbabwe Independent. “It would have
sent a wrong picture of the KP as a toothless body. Civil society groups, with
the support of countries such as the US and Canada were concerned that human
rights abuses would continue in Marange if Maguwu’s case was not resolved at
the meeting.
“His arrest could deter other
rights activists from monitoring Marange, which would leave the fields with a
potential of escalating into some sort of war zone, a situation that would make
it easy for diamonds mined in traditional war zones such as the Democratic
Republic of Congo to be mixed with those from Marange to avoid detection.”
As debate raged on into Tuesday
evening, with no consensus in sight, KP chair Boaz Hirsch, an Israeli, stepped
in. As the clock ticked to midnight on Tuesday, with efforts heading for a
deadlock, two groups gathered separately to brainstorm.
One group included Hirsch, the
chair of the Working-Group on Monitoring, Stephane Chardon, president of the
World Diamond Council, Eli Izhakoff, and Sheldon Moulton, a country
representative from South Africa.
NGOs, led by Global Witness and
PAC and a representative from the United States met separately. It is at this
meeting where what has become Mpofu’s biggest weapon emerged. During
deliberations, like most discussions related to Zimbabwe at the meeting, the
issue of Maguwu’s troubles came up. A suggestion was then made within the group
that Zimbabwe should be asked to set aside one percent of the net revenues from
the Marange mines to help strengthen civil society in Zimbabwe and pay for
costs such as Maguwu’s legal fees.
This was around 3am on
Wednesday, two-and-a-half hours before breaking after the fruitless discussions.
The NGO group however dropped the idea when they met again on Thursday
mid-morning following Hirsch’s extension of the plenary.
“It was too late. Mpofu had
somehow got wind of the proposal and chose to fully exploit it upon returning
home,” said a source.
Global Witness and PAC this
week both rejected Mpofu’s claims, but confirmed the issue had at one time come
up for discussion during the brainstorming sessions.
“The idea was never formally
put on the negotiation table by civil society groups, or anyone else, and at no
point in the informal discussions was it posited as a condition for the
resumption of diamond exports,” said PAC’s Alan Martin.
While KP members say they are
committed to breaking the Zimbabwe impasse at a meeting scheduled for July 14
and 15 in St Petersburg, the bribery claims have heightened fears that the
Zimbabwe issue could tear the KP apart.
“The Kimberley Process managed
to salvage some of its credibility last week by refusing to endorse a
resumption of exports from Marange. Zimbabwe seems intent upon damaging the
scheme further with this latest slur,” said Martin.
Farai Mutsaka
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27117-little-progress-in-maguwu-probe.html
Thursday, 01 July 2010 20:32
POLICE yesterday blamed the
director of the Centre for Research and Development, Farai Maguwu, and his
lawyers for delaying the completion of investigations into allegations that he
authored a false document on the goings-on at Chiadzwa diamond fields.
Investigating officer Inspector
Henry Dowa told the Harare Magistrates Court that very “little progress had
been made” because Maguwu and his defence team were refusing to give the
investigating officer access to a laptop which was recovered at his house.
“He (Maguwu) said he would want
the authority of the board of directors and all five board members are out of
the country,” Dowa said. “One is in Japan, another in the United Kingdom,
another in Canada while the fourth was in South Africa. It is very difficult to
get in touch with them to get the authority to access the laptop. It is a very
difficult task to look for somebody in Japan or South Africa without a specific
address.”
However, Maguwu’s lawyers led
by Beatrice Mtetwa said access to the laptop was not an issue as the charges
facing Maguwu emanated from the document which was already before the courts
and it was unnecessary to look for further documents in the laptop.
Harare magistrate Donald
Ndirowei is expected to make a ruling on Maguwu’s bail application today.
Dowa said they would have
completed the investigations by June 22 as he had promised the court, if it had
not been for the delay by the accused and his defence team and failure to get
statements from other witnesses.
The witnesses who Dowa wanted
to record statements from include the South African-based Kimberley Processing
monitor Abbey Chikane who was given the incriminating document. Three other
witnesses, whose residential addresses are unknown, would also assist Dowa with
investigations.
“I am not having problems
(recording a statement from Chikane) but he is very mobile. I missed him as he
had gone to Israel and he would soon be going to Russia. It should be noted
that before I go, there are certain procedures that I have to go through, for
example Cabinet approval.”
Mtetwa said the investigating
officer should not have gone on a “state-sponsored holiday in South Africa” as
it was not necessary.
“Chikane’s statement is
irrelevant,” Mtetwa said. “His (Chikane’s) document is not forming the basis of
the charge Maguwu is facing. It is inconceivable that an officer of 25 years
experience would go to South Africa without proper appointment. He did not
provide any evidence that he went to South Africa.”
In response, Dowa said he had
used his police identification to travel to South Africa as his passport had
expired but he offered to call a superior he travelled with as evidence that
they went to that country.
Mtetwa roundly criticised the
investigating officer for trying to record a statement from Chikane when he had
failed to do the same locally as the document from where the charges emanate
was allegedly authored by Assistant Commissioner N Mawere.
Inspector Dowa had not recorded
a statement from N Mawere or the Mines ministry official from whom he got the
document.
Mtetwa added that on June 23,
the state said Dowa was in South Africa yet the investigating officer said he
returned from that country on June 21.
“This discrepancy was because
the state had done nothing towards further investigation,” she said.
Mtetwa said Dowa should have
made an “elementary e-mail enquiry” to ascertain where the three other
witnesses were as they could have been in the country or even in the courtroom.
Dowa insisted that the procedure
required that the police inform Interpol if there are any extra-territorial
investigations to be undertaken and they had done so though he would not
provide evidence in court.
Mtetwa asked why the police had
not investigated allegations of abuse and torture as ordered by the court.
She said the trend was that
Dowa was involved in cases of abuse and torture as he had been sent back from a
United Nations Mission in Kosovo on similar accusations.
Dowa said it was not true that
he was sent back or recalled but had fallen ill while in Kosovo prompting his
return and he had medical cards to prove that.
Leonard Makombe
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27115-furore-over-us100m-coal-mining-project.html
Thursday, 01 July 2010 20:30
A PLANNED US$ 100 million coal
mining project in Gwayi is threatening surrounding wildlife conservancies as
well as raising fears it will pollute the Gwayi-Shangani dam, which is viewed
as Bulawayo’s solution to water problems.
Liberation Mine, a joint venture
firm between Zimbabwean and South African investors, was granted a licence to
prospect for coal-bed methane on February 22 and has been clearing vast tracks
of land for coal extraction.
The community and players
involved in the dam construction fear that activity on the coal fields will
affect wildlife and the water project.
Maxwell Sibanda, an official
with Gwayi Conservancy Association, yesterday said due to the extensive usage
of chemicals such as benzene in coal mining, the Gwayi-Shangani Dam and its
green belt that sustains a wide array of wildlife could be a casualty.
“What is more worrying is that
the environment impact report is not yet out, but exploration work is underway.
We fear that chemicals used in mining could seep through to the dam site and
contaminate the water. This would require extensive use of water purification
chemicals,” said Sibanda.
He added that once the water
was contaminated, downstream agricultural industries such as fisheries, which
sustain local communities, would collapse.
“It is common knowledge that
fish cannot survive in contaminated water, so the fish industries might fail to
take off,” Sibanda said.
Regarding wildlife, Sibanda
said coal dust would affect the growth of vegetation, while noise associated
with mining activities could force animals that include a large herd of
elephants to flee.
“Another worry is on
vegetation,” he said “Coal dust is known to affect the growth of trees just
like in Hwange. Animals here are now used to the vegetation, hence any
disturbance is likely to have an effect on eating habits of animals resulting
in them migrating,” he said.
Villages in the vicinity of the
mine site include Kana Block, Mazwa, Hangano and Chimwara.
A safari operator in the area
said: “We are not sure of how far the mine would stretch as we are getting
conflicting reports. Two weeks ago Liberation Mine officials told us that they
are taking up about 6 500 hectares, but on Monday it emerged during a meeting
that 16 545 hectares is under the mining concession.
“Now some safari operators
would have their revenue affected as animals are expected to flee the area due
to noise from the mine. We need explanations.”
Safari operators say they
average US$ 100 000 in earnings per hunting season which lasts three months.
A stakeholders’ meeting, that
would involve safari operators, Zimbabwe National Chamber of Commerce (ZNCC)
Bulawayo chapter Affirmative Action Group (AAG), Bulawayo City Council and
government is on the cards to discuss the issue.
Liberation Mining’s Hangano
concession covers a total of 16 545 hectares with coal reserves estimated to be
1, 5 billion tonnes with a lifespan of between 15 to 20 years of open-cast
mining.
Liberation Mine has set a US$
100 million budget for mining coal in Gwayi and its South African partners,
LontohCoal, have already released US$ 2 million for the project.
The company expects to start
mining by year-end and go full throttle during the first quarter of 2011.
The mine is targeting producing
100 000 tonnes of coal monthly.
A Liberation Mine spokesman
yesterday confirmed that they were yet to get an environmental assessment
impact certificate although workers were already on the ground.
“On the environmental
assessment impact, that is work in progress as our consultants are currently on
site,” the spokesman said.
“We expect the report to be out
in two weeks time, but now we are conducting exploration drilling, taking out
samples of the product.”
He said concerns on the
potential of the project to affect the Gwayi-Shangani water project would be
clarified by the report.
LontohCoal, which says it plans
to list on the Johannesburg Stock Exchange by November, is a specialist mining
exploration finance company with investments in coal, gold, iron ore, nickel
and platinum.
National Parks and Wildlife
Management Authority director-general Vitalis Chatenga could not be reached for
comment at the time of going to press last night.
Water Resources Minister Samuel
Sipepa Nkomo told the Zimbabwe Independent yesterday that he would engage the
Mines ministry over the project’s potential effect on the Gwayi-Shangani Dam
project.
Nqobile Bhebhe
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27113-zim-to-press-for-sanctions-removal-.html
Thursday, 01 July 2010 20:28
ZIMBABWE wants a complete
removal of sanctions without any conditionality by the European Union (EU)
because of the progress government says it has made in implementing the global
political agreement (GPA), a cabinet minister said this week.
Regional Integration and
International Cooperation minister Priscilla Misihairabwi-Mushonga told the
Zimbabwe Independent before leaving for Brussels on Tuesday that the meetings
today with EU officials would seek to clarify issues raised by the bloc on the
lack of progress in implementing the GPA.
She, however, said they were
not going to Brussels to beg or behave like “schoolchildren”, but would merely
state achievements made so far by the inclusive government and the vision they
have to improve the economy.
“We are not doing what we are
doing to get approval from the EU or for the EU to say good girls and boys, but
we are doing it for ourselves - this is for our society and the society we want
to build,” she Misihairabwi-Mushonga said.
“We are not going there to be
like schoolchildren; we are going there to say this is the society we would
want to build. We will ask them if they want our partnership as is in the
Cotonou Agreement. If they want then we will all of us define what kind of
partnership we should have.”
The government delegation,
which also includes Justice minister Patrick Chinamasa and led by Energy
minister Elton Mangoma, will meet with EU Foreign policy tsar Baroness Ashton,
director-general for development Stefano Manservisi, and Commissioner for
Development Andris Piebalgs.
“We have agreed on a common
position - we want the sanctions to be completely removed,
Misihairabwi-Mushonga said.
“We know the general issues
that the EU has raised. We are going to deal with these issues. We are going to
clarify issues raised and talk about the progress we have made so far.”
“We will tell them this is a
process and there is never a time when we can reach 100% implementation. But
what we have done is indicative of the progress made and our commitment. We
have made progress - we will talk about freedom of information and the commissions
we have set up.”
Government has set up a
Zimbabwe Media Commission which has now licensed four dailies, Alpha Media
Holdings’ NewsDay, Modus Publications’ Daily Gazette, and ANZ’s Daily News
which was shut down by the government in 2003 for allegedly violating
provisions of the Access to Information and Protection of Privacy Act.
ZMC has also given the green
light to the Mail and to the Zimbabwe Congress of Trade Unions to change the
frequency of its publication, The Worker, from a monthly to a weekly.
In addition to the media
commission, the government has also set up a Human Rights Commission chaired by
Reg Austin, a law professor and former Commonwealth secretariat’s head of legal
and constitutional affairs division; and an electoral commission headed by
Simpson Mutambanengwe, a former Zimbabwean Supreme Court judge, who was serving
as acting chief justice in the Namibian Supreme Court.
It has also embarked on the
constitution-making process, which has so far been marred by chaos, confusion,
and violence.
The EU re-engagement dialogue
process was launched by Prime Minister Morgan Tsvangirai last June.
The meetings will be held under
the Cotonou Agreement, which is a comprehensive partnership agreement between
developing countries and the EU. The European Development Fund (EDF) is the
main instrument for providing EU aid for development cooperation in ACP
(Africa/Caribbean/Pacific) states under the agreement.
The Zimbabwe delegation hopes
to convince the EU through its body language, which it says would show that
there is harmony within government.
In February the EU renewed its
sanctions against Zimbabwe for another year, citing lack of progress in
implementing the power-sharing agreement.
The three political parties are
still to agree on the appointments of Reserve Bank of Zimbabwe governor Gideon
Gono, Attorney-General Johannes Tomana, and provincial governors, the
swearing-in of Deputy Agriculture minister-designate Roy Bennett, security
reforms and opening up of airwaves, among other issues.
Faith Zaba
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27109-constitution-making-off-to-false-start.html
Thursday, 01 July 2010 20:21
A DECISION to black out news
coverage of public views offered to constitution-making process outreach teams
has shackled the coalition government’s attempt at drawing up a new governance
charter for the country. In addition, violence and logistical shortcomings have
left hordes of outreach members stranded. The constitution-making project, a
key component of Zimbabwe’s agreed but unimplemented democratic reforms, has
endured a two-week start of horror.
Copac’s decision this week to
stop journalists from reporting on the public’s contributions during official
outreach hearings has reinforced suspicion that the coalition government could
manipulate the constitution-making process.
Journalists’ unions say Copac’s
decision to muzzle the media smells of an attempt by coalition government
partners to forge a deal that could result in a negotiated settlement of
cornered politicians.
Zimbabwe Journalists for Human
Rights (ZJHR), a grouping of scribes formed to fight for reporters’ rights and
security at the height of the State’s often violent onslaught on the media,
described the move to silence the media as “repressive and typical of agents of
political parties hell-bent on excluding the media from its activities to
escape public scrutiny and accountability”.
Dumisani Muleya, ZJHR
spokesman, said his group viewed the ongoing constitution-making process as
worse than any of the previous efforts the country has had in the past.
“We demand that Copac operates
in an open and transparent manner. This actually highlights the grave concerns
we have been having about this flawed and opaque constitution-making process.
It is an opaque body driven by narrow and partisan party political interests as
opposed to the public interest,” said Muleya.
Foster Dongozi, elected
secretary-general of the Zimbabwe Union of Journalists at a disputed congress
earlier this year, said his organisation would take up the matter with Copac.
“We believe a process such as
the crafting of a constitution should withstand any test of credibility and
that can only be achieved if the process is made as transparently as possible.
Allowing the media to act as the public’s eyes and ears is the surest way of
achieving transparency,” said Dongozi.
The treatment of journalists
covering the outreach programme is turning out to be reminiscent of the old
days preceding the formation of the coalition government.
Police detained two
Mutare-based journalists, Sydney Saize and Chengetai Murimwa, who were
conducting their professional duties of covering the outreach in Mutare South.
Saize and Murimwa were released after two hours of interrogation. They say they
now fear for their security after police took down their residential addresses,
ID numbers and vehicle details.
This same week, MPs from both
Zanu PF and its coalition partner, Prime Minister Morgan Tsvangirai’s MDC-T
party, drove off a news crew of photo journalists in Marondera on Monday. The
journalists left without footage, leaving unions to question the credibility of
the process given the secrecy surrounding it.
Problems affecting the process
continued this week.
Outreach team members for
Matabeleland North were yet to start consultative meetings in Lupane and other
areas in the province as they were still holed up at Hwange Safari Lodge.
Villagers in Lupane told the
Zimbabwe Independent on Wednesday that no single meeting had taken place so
far.
“We heard that Copac members
are at Hwange Safari Lodge where they are still undergoing training on how to
approach villagers and how to use equipment,” said a Kusile Rural District
council official.
In Gwai, villagers said they
were yet to be informed on the venues and dates for the meetings.
In interviews this week,
villagers here said Zanu PF activists, who had been holding meetings in the
area had moved to a door-to-door campaign coaching villagers on what to say
during outreach hearings. The villagers said the activists warned them that
they would use footage captured by Copac cameras to witch-hunt those who would
sway from the party position.
Civil society groups have been
reporting regular cases of violence, intimidation and disruptions since the
outreach started.
Police, which had promised 350
officers, five per outreach team prior to the start of the process, had failed
to deploy resulting in rowdy gangs which rights activists and groups claim are
supporters of President Robert Mugabe’s party disrupting meetings. These
developments have confirmed rights groups monitoring the situation and media‘s
concern of slack security.
Police commanders Innocent
Matibiri and Faustino Mazango told the Parliamentary Portfolio Committee on
Defence and Home Affairs in May that they could not guarantee security for the
outreach programme because of resource shortages.
This was after the
Constitutional Parliamentary Committee (Copac) refused to pay US$ 3 million
demanded by the law enforcement agents for outreach expenses. Police later
reluctantly agreed to provide security, and reduced manpower from 1 000 to 350
officers.
Nqobile Bhebhe/Farai Mutsaka
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27107-villagers-coached-to-back-kariba-draft.html
Thursday, 01 July 2010 20:21
THE issue of gay rights has
taken centre stage in the constitution outreach programme with Zanu PF
reportedly telling villagers in Mashonaland West that any constitutional
provisions outside what is in the controversial Kariba draft will promote same
sex marriages and homosexuality. Villagers in President Robert Mugabe’s rural
home in Zvimba, 110km west of Harare, and neighbouring Chitomborwizi in Makonde
district now strongly believe that those calling for a people-driven
constitution, who are opposed to the Kariba draft, want to include the issue of
gay rights in the new constitution.
Zanu PF, the villagers allege,
is using homosexuality, something which they know people - particularly those
in rural areas - are strongly opposed to, to make sure that they parrot what is
in the Kariba draft.
Villagers claimed that Zanu PF
campaigned for the Kariba draft, written by the three political parties in the
inclusive government, during meetings prior to the constitution outreach
programme.
Villagers in Chief Chirau’s
area, also known as Kawondera village in Zvimba, say that they were addressed
by soldiers three weeks ago, who told them that they should demand a
constitution with an executive president who has far-reaching powers to appoint
without any consultation.
The villagers refused to be
named for fear of being victimised for adopting what might be perceived as
“anti-Zanu PF” positions on the constitution.
An elderly woman, who had been
waiting for almost two hours for an outreach meeting at Kawondera primary
school, which was later postponed to Saturday, derided a constitution that
promotes gay rights.
“Masoja akati addresser three
weeks ago. Vakatiudza kuti vanhu ava varikuda zveconstituation nyowani isiri
yeku Kariba, varikuda kuti tibvume zvechingochana. Ah kana ndiwe mwana wangu,
zvingaite here kuti ini ndidanane nambuya ava (Q)
Kwete hatidi izvozvo. (We were
addressed by soldiers three weeks ago. They told us that those opposed to
Kariba draft want the new constitution to allow for homosexuality. My child,
how can I have a lesbian relationship with this old woman (Q)
We say no to that),” she said.
A youth wearing a red cap and a
Zanu PF t-shirt with Mugabe’s picture, which he referred to as “hembe yenyika”
(Zimbabwean outfit) questioned why Zimbabwe was drafting another constitution
when the three political parties wrote and agreed to the Kariba draft.
“We don’t understand why they
want another one when there is already Kariba draft,” he said. “My sister, even
if we are in rural areas we know that there was a constitution written in
Kariba and now what’s wrong with it (Q)
We want that one, not the one
that they want to write now promoting homosexuality.
“We say No to homosexuality,
they want me to marry another man - to pay mombe yehumai (bride price) Ahhh,
haizviite (we can’t do that),” he said with a look of disgust.
Zanu PF wants the old executive
system comprising a powerful executive president, two vice presidents and a
cabinet as advocated in the Kariba draft. It has said no to having a prime
minister.
The villagers were not willing
to talk about bread and butter issues and were afraid to openly discuss the
executive arms of government.
It was clear that there had
been some form of intimidation.
Another elderly woman, also
from Kawondera village, refused to even hear any questions regarding what kind
of an executive arm of government she preferred.
“Handikwanise kutaura nyaya
iyoyo (I can’t talk about that issue). Tichangoita ivo zvavanoda (we are just
going to do whatever they want),” without clarifying whose wishes she was
referring to.
“Handikwanise kutaura
zvirimumoyo mangu asi kuti ahh zvavanenge vataura ndizvozvo - Izvozvo zviri
muKariba ndizvozvo zvacho. (I can’t say what is in my heart except that
whatever they want me to say - what is in Kariba, that is that),” she added
after being pressed to state her preferences.
Women said they could speak
openly on issues to do with the elderly, orphaned children and widowed women.
They want gender equality,
which should mean a 50-50 ratio even in government and cabinet.
The women said the constitution
should stipulate that a grant, either in cash or food aid, be given by
government to the elderly, orphaned and unemployed widowed women, while the
youths were more concerned about government creating job opportunities and
ensuring that there are more vocational training centres. The Zimbabwe
Independent attended one meeting at Chitomborwizi primary school where
villagers seemed to parrot the responses prepared by Zanu PF in its 95-page
document on its position.
One particular woman in a
purple hat appeared like the spokesperson for the group, with only four youths
opposing most of the positions, particularly those related to having an
executive president with excessive powers.
She spoke first and another
person would second, while the rest would vote in support.
Whenever people spoke on issues
regarding appointments to commissions or other arms of government, they would
say “the executive president should” or that they should go back to the
situation before the inclusive government where there was no need for any
consultation.
On the judiciary, the group of
about 40 people agreed that the judiciary should remain as it was and that
Supreme Court decisions should not be challenged.
They said the appointment of
judges and the Judicial Service Commission should be done by the “executive
president”, while the youths preferred a commission appointed by parliament to
select judges without any input from the president.
The villagers said the
executive president should appoint the attorney-general, auditor and
comptroller-general, ombudsman, Reserve Bank governor, Public Service
Commission, Anti-Corruption Commission, Media Commission, Electoral Commission,
Human Rights Commission, Truth and Justice Commission, Gender Commission and
Land Commission. In addition, the villagers said the president should appoint
heads of the police, defence forces, prisons services and cabinet.
All these appointments, they
said, should be done by the president without consultation, as is prescribed in
the Zanu PF’s document.
Responding to a question on
whether parliament or a standing order committee of parliament should approve
cabinet appointments, Zanu PF said: “There is no need for parliamentary
approval of the President’s appointments of cabinet ministers since the president
is popularly elected directly by the people.”
The youths opposed this, saying
that would give too much power to one person without any checks and balances,
to which there were interjections.
On transitional mechanisms, the
villagers agreed that one of the two vice presidents, who would be acting at
that time should take over for 90 days after which he/she should call an
election.
“President vakarwara kana kufa
(if the president is sick or if he dies), the acting president should take over
for 90 days and not the prime minister - one of the two vice presidents,” said
the woman in the purple hat.
The villagers said they did not
want a prime minister because it was “foreign” and not African as there was
none on the continent.
Faith Zaba
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27099-diamonds-does-kimberley-process-work.html
Thursday, 01 July 2010 20:12
THE Kimberley Process came into
effect 10 years ago to stem the flow of rough diamonds used by rebel movements
in Africa to finance wars against legitimate governments.
So has it worked (Q)
Critics insist it has not. Some
diamonds avoid the Kimberley Process, they say, questioning the efficacy of the
system.
Diamonds have fuelled decades
of conflicts in countries such as Angola, Ivory Coast, Sierra Leone and the
Democratic Republic of the Congo.
A report from the campaign
group Global Witness says much of this is still going on in parts of Africa.
In Zimbabwe, the military and
political elite are allegedly exploiting the country’s diamond wealth, often by
using force, Global Witness says.
But Ernest Blom, of the World
Federation of Diamond Bourses, argues that the Kimberley Process has succeeded
in its aim to stop diamond mining which funds wars.
“As far as Zimbabwe is
concerned, we have supposed human rights abuses which I think is out of the
ambit of the diamond industry,” he says.
The Global Witness report
claims that between 100 and 200 miners were killed in the Marange area in
eastern Zimbabwe in 2008, as the army imposed military control over the fields.
And according to Human Rights
Watch, Zimbabwe’s military is forcing children and women to work at the mines,
whilst also torturing and beating local villagers in the Marange area - claims
dismissed last week by Home Affairs minister Kembo Mohadi as “lies”.
Human rights campaigner Farai
Maguwu was arrested at the beginning of June for allegedly giving false
information about the Chiadzwa diamond fields to Kimberley Process monitor
Abbey Chikane.
“Soldiers have been accused of
illegal panning activities and they are primarily responsible for mining the
diamonds, which are being exported through undesignated points to neighbouring
countries and the rest of the world,” Magawu recently asserted. “There have
been reports and overwhelming evidence of serious human rights abuses taking
place in the Chiadzwa diamond fields.”
Whenever an official from the
Kimberley Process visits the diamond fields there is an upsurge in violence,
whereby the soldiers victimise ordinary civilians who they accuse of illegal
panning, he explained.
“Women have been gang-raped by
soldiers and police and these substantiated allegations are very unacceptable
and show that Zimbabwe is not complying with the minimum standards of the
Kimberley Process,” Maguwu said. “Our officers go to the fields and neighbouring
areas surrounding the diamond fields, investigate the abuses and get sworn
affidavits from the victims in the company of a lawyer.”
Maguwu said there were no
reports from other mines and that the bone of contention is Chiadzwa.
“The Minister of Mines, Obert
Moses Mpofu, has openly flouted Zimbabwe’s tender regulations by clandestinely
forming companies and giving them licences to mine such a rich public resource
that can solve half of our economic problems,” Maguwu maintained.
Global Witness has concluded
that the main beneficiary has been Zanu PF and its supporters.
The Kimberley Process has told
the government not to sell any diamonds from Marange until they have obtained a
certificate, but illegal smuggling of diamonds gets them out of Zimbabwe through
Mozambique and South Africa.
Investigations suggest that
most of those diamonds find their way to Dubai and Lebanon, where they end up
being mixed with diamonds from legitimate sources and they are then sold to
western buyers.
Zimbabwe’s army has denied the
allegations and Mpofu has declined to be interviewed about the allegations.
In February, President Robert
Mugabe threatened to leave the Kimberley Process after Zimbabwe was given until
last month to prove that its mines were properly run.
The Kimberley Process
Certification Scheme (KPCS) imposes extensive requirements on its
diamond-producing member states to enable them to certify shipments of rough
diamonds as “conflict-free”.
With a certificate of
provenance, it is therefore possible to trace the origin of every single gem
stone.
The crisis in Zimbabwe is
undermining international efforts to eradicate conflict diamonds.
Concerns about the
effectiveness of the Kimberley Process have led to the resignation of one of
the officers who set up the system.
“I could no longer, in good
faith, contribute to pretence that failure is success,” says Ian Smilie. “It
was a very simple idea. If you want to be part of the legitimate diamond trade
you have to be in the Kimberley Process. Any diamond exported from a country
has to have a Kimberley certificate. There has to be an audit trail and you
have to say where a diamond came from.”
But Smilie has become
frustrated at the Kimberley Process’s inability or unwillingness to come to
grips with some very serious problems.
In the three countries which
had the most terrible wars, Angola, Sierra Leone and the Democratic Republic of
the Congo, the government’s internal controls are very weak, he says.
“The government in Congo has no
idea where 40% of its diamonds come from - they could be coming from Angola or
Zimbabwe or even from Mars,” Smilie says.
Zimbabwe is a member of the
Kimberley Process, so if they do not agree you cannot move forward.
“We haven’t figured out how to
stop car theft, which has been going on for 110 years, and we know there will
always be theft, but when you have a regulatory system that refuses to come to
grips with obvious cases then you have a serious problem,” Smilie says.
“If the US, which is the
biggest consumer of diamonds in the world, says ‘listen, if the Congo is unable
to enforce the minimum provisions we will no longer allow the importation into
the United States from the Congo until they clean up their act’, you would see
a huge amount of action take place in the Congo.”
Although there can never be a
cast-iron guarantee about the provenance of diamonds, Blom of the World
Federation of Diamond Bourses believes the public can rest assured that the
Kimberley Process is a robust system that works most of the time.
“We want to give comfort to the
consumer that the diamonds they have bought have come from legitimate sources
and they can wear it with pride and with love,” he says. - BBCOnline.
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27083-devolution-and-its-benefits-for-zim.html
Thursday, 01 July 2010 19:51
AS the much-awaited
constitutional outreach programme finally kicks-off, one thematic area that
looks set to dominate the public hearings is that of systems of governance,
particularly the decentralisation of administration and devolution of power
from Harare to regions or provinces.
Virtually every party claims to
support devolution. Strangely, the main parties, namely Zanu-PF, MDC, MDC-T and
Zapu, seem to mean different things by “devolution of power”. This could be due
to lack of understanding of what devolution really is, or the usual pretence
and lack of sincerity by politicians.
It is clear Zanu PF and MDC-T’s
version of devolution as enunciated by their officials and in press reports, is
basically not devolution, but some sort of decentralisation or deconcentration
of power. Zapu and MDC’s versions of devolution are in my view meaningful,
comprehensive, clear and sincere.
The only commonality across the
various party positions on systems of governance is that after 130 years of a
unitary, centralised state, now is the time to decentralise.
Decentralisation is
fundamentally an argument about governance. Decentralisation was sparked by
close to 130 years of highly authoritarian rule and centralised governments,
starting from the days of Cecil John Rhodes up to date. Generally, it is argued
that centralised governments encourage centralised administrative structures
which are major obstacles to people’s participation. These administrative
structures retain control over decision-making, resource allocation, and the
information and knowledge required if people are to play an effective part in
development activities.
Similarly, the planning of
development programmes and projects is often centralised and planning procedures
discourage local involvement. Government planners are invariably a professional
group who do not concede their practice to the local level. Most planning takes
place in ministries in urban areas and there is rarely any genuine desire to
devolve this responsibility effectively to the local level. According to
Oakley, a development scholar, indeed it would be argued that in most Third
World countries administrative structures are invariably centralised and, by
definition, essentially anti-participatory.
It is clear from the ongoing
debate that some powerful people in the inclusive government are hostile to the
whole notion of reducing central control, devolving decisions to local level
and supporting demands made by people for the kinds of radical changes that
might be required. Evidence suggests that few governments have willingly
devolved bureaucratic controls to the local level.
According to the Human
Development Report (1993) decentralisation can take several forms; it might for
example be horizontal or vertical. Horizontal decentralisation disperses power
among institutions at the same level. For example a government’s spending
decisions, rather than being concentrated in an all powerful Finance ministry,
might be spread across different ministries.
Vertical decentralisation is
more powerful. It allows some of the powers of government to be delegated
downwards to low tiers of authority. This vertical decentralisation can itself
take three forms. The first one is deconcentration: this is limited to passing
down only administrative discretion to local offices of central government
ministries. It involves the transfer of workload and selected administrative or
decision-making authority and responsibility from the headquarters to lower
field-level officials within central government ministries or public agencies.
“It involves the transfer of
authority for specific decision-making, financial and management functions by
administrative means to different levels under the same jurisdictional
authority of the central government”.
Although it does result in some
dispersal of power, few decisions can be taken without reference to the centre.
In the case of Zimbabwe, an
example would be the Ministry of Home Affairs, which has de-centralised the
issuance of birth and death certificates, passports, identity cards and
marriage certificates to provinces and districts, or the issuance of vehicle
licence discs at post offices and local authority offices. However, one may
still have to go to Harare for some services. In any case, passports are still
printed in Harare and the superiors in Harare have final say on any matter.
The other form of
de-centralisation is delegation. This involves delegating some authority and
decision-making powers to local officials, but central government retains the
right to overturn local decisions and can at any time take these powers back.
In our case, minister Ignatius Chombo has overturned countless resolutions made
by elected councillors in virtually every other local authority. Delegation therefore
is the transfer of government decision-making and administrative authority
and/or responsibility for carefully spelt out tasks to institutions and
organisations that are either under government’s indirect control or
semi-independent. Most typically, delegation is by the central government to
semi-autonomous organisations not wholly controlled by the government but
legally accountable to it.
The third and most important
form of decentralisation is devolution. This is the granting of decision-making
powers to local authorities and allowing them to take full responsibility,
without reference back to central government.
Through devolution, en-
tral government relinquishes
certain functions or creates new units of government that are outside its
direct control. Devolution in its purest form has certain fundamental
characteristics:
=Local units of government
are autonomous, independent and clearly perceived as separate levels of
government over which central authorities exercise little or no direct control.
=Local governments ha-
ve clear and legally
recognised geographical
boundaries within which they exercise authority and perform public functions.
=Local governments ha-ve
corporate status and the power to secure resources to perform their functions.
=Devolution implies the need to “develop local governments as
institutions” in the sense that they are perceived by local citizens as
organisations providing services that satisfy their needs and as governmental
units over which they have some influence.
Devolution is an arrangement in
which there are reciprocal, mutually beneficial, and coordinate relationships
between central and local governments.
Development scholars argue that
decentralisation involves the transfer of authority and power to plan, make
decisions and manage resources, from higher to lower levels of the
organisational hierarchy, in order to facilitate efficient and effective
service delivery. Decentralisation deals with the allocation between centre and
periphery of power, authority, and responsibility for political, fiscal, and
administrative systems. De-concentration progressively decreases central
control and increases local discretion. Devolution is associated with more
democratic governance and a means to enact and deepen democratic participation.
Democratic decentralisation may
be promoted for a number of reasons; administrative, fiscal, political or
others. The justification for the adoption of some form of decentralisation is
to promote democratic governance and participatory approaches in development.
Among the reasons often given is to bring government closer to people and
enhance their participation and interaction with local government officers in
the affairs of the locality.
The UNDP (1998) points out that
decentralisation or decentralising governance should not be seen as an end in
itself; it can be a means for creating more open, responsive, and effective
local government and for enhancing representational systems of community-level
decision making. By allowing local communities and regional entities to manage
their own affairs, and through facilitating closer contact between central and
local authorities, effective systems of local governance enable responses to
people’s needs and priorities to be heard, thereby ensuring that government
interventions meet a variety of social needs.
Having explained what
decentralisation and devolution are, I go further to lay bare the form of
devolution that Zapu wants. Our party basically wants the country to be divided
into five provinces/regions, namely Mashonaland, Masvingo, Midlands, Manicaland
and Matabeleland. Each province/region should have its own elected
premier/governor and mini-government. The regional governments will have
control over natural resources and environmental issues in their areas of
jurisdiction. Each province should also have its own parliament/assembly,
judiciary system, and revenue raising system.
Zapu believes five provinces as
opposed to the current 10 would be viable. We wonder what benefit the division
of Matabeleland into North, South and Bulawayo, and Mashonaland into East,
West, Central and Harare has helped, except to create five more vacancies for
governorship.
Under devolution, there would
still be a central government to maintain territorial integrity and control
crucial affairs such as defence, national security, foreign affairs, and
international trade. Also, we would still sing the same national anthem, fly
the same flag, have one head of state and commander-in-chief, one currency, and
have one national sports team.
A National Executive Authority
including the president, deputy president, Speaker of the House of Assembly,
the prime minister and the elected provincial governors of the five provinces
shall run the country.
The National Executive Authority
will be the supreme decision making body of Zimbabwe. Its duties will be to
advise the president on the meaning and implication of old and new legislation
before he/she signs it into law; advise the president on all matters of
national interest and concern; and advise the president on all senior national
government appointments, including appointments of people to constitutionally
entrenched institutions.
Opponents of devolution have
mischievously misrepresented it as federalism or secession. South Africa, which
adopted devolution, is undoubtedly the most prosperous and democratic African
state. In fact, secessionist and tribalistic tendencies are stronger in unitary
states with strong centralised systems like Zimbabwe.
=Methuseli Moyo is the
spokesman for Zapu. He can be contacted
at methumoyo@yahoo.co.uk .
By Methuseli Moyo
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/local/27085-devolution-could-worsen-regional-disparities.html
Thursday, 01 July 2010 19:51
CALLS for devolution in the
constitution-making process have brought to the fore complaints from
resource-rich regions which feel that central government is robbing them to
develop preferred provinces.
The centralised government
model has failed to develop all areas equitably, leading to uneven development
which is evident as one travels in any direction from the capital city.
Uneven development has largely
affected areas in the west of the country, especially the Matabeleland
provinces, and this has prompted political parties, civil society and pressure
groups from that area to advocate devolution in the new constitution.
They argue that political power
and resource allocation decisions are controlled in the capital and there was
very little that trickled down to the areas further away from Harare,
especially in their direction.
Matabeleland has been sidelined
from development and certain projects which could have eased specific problems
have either been ignored or stalled. An example is the Matabeleland Zambezi
Water Project, which was expected to ease water problems and boost agriculture
in the otherwise dry area, but has been stalled for decades.
Matabeleland-based political
parties, civic organisations and pressure groups argue that with devolution,
authorities at a lower level would be granted statutory powers.
These authorities at a lower
level would have powers to draw up budgets and allocate resources based on the
need of each area. Zimbabwe’s experiment with decentralisation as a development
model can be traced back to the establishment of the Provincial Governors and
Administration Act.
Not much was achieved and 11
years later the then Local Government minister, John Nkomo, came up with the 16
principles on decentralisation as a way of dealing with regional development
within the decentralised framework, which, like most of the country’s policies
and policy statements, gathered dust in the corridors of power.
Analysts said calls for
devolution were a clear sign that there has been uneven development in the
country and some areas were now frustrated hence they would want to seize the
constitutional moment to seek redress.
John Makumbe, a political
science lecturer at the University of Zimbabwe, said devolution in the country
could face problems because of the size of the country (measuring 380 590
square kilometres) but it was worth a try.
“The real reason why there is a
call for devolution is that the experience of governance has seen the
development of other provinces and the neglect of others,” said Makumbe. “This
is a result of the bitter history of marginalisation of provinces. You can see
that companies are relocating from Bulawayo to Harare and if you look at the
capital city, you see very tall buildings but in other cities buildings have
only one floor.”
Another analyst, Ibbo Mandaza,
an academic and former top civil servant, concurred, saying calls for
devolution had to do with “the nasty period in post-independent Zimbabwe,
including Gukurahundi”.
During Gukurahundi an army
brigade was deployed to the western parts of the country to contain dissidents
but ended up killing civilians between 1982 and 1987.
“It also has something to do
with the unresolved national question in Zimbabwe and it has to be addressed,”
said Mandaza. “Today it is Matabeleland saying this and tomorrow it will be
Masvingo or Manicaland. It is sad that the leadership has shown that it has
failed to address the issue.”
Devolution, analysts added,
could be a very strong instrument for enhancing and achieving sustainable
development in all provinces unlike now when only the Mashonaland provinces
appear to have benefited since Independence.
Morgan Jeranyama, programme
manager at the Non State Actors Forum, said devolution would allow for
empowered regional development if all the requisite factors, including human,
material and financial resources, become available in the regions.
“We must stop just thinking of
the benefits with respect to budgetary or financial resources only,” said
Jeranyama. “The material, natural, financial and technological resources may be
abundant but when the right human resource is not present, the expected
benefits will not be realised.”
Jeranyama added that while it
was true that a lot of development programmes failed to take effect because the
regional plans have not received sufficient budgetary support from the centre,
the whole issue required extreme caution as devolution in the absence of
adequate resources would not change situations.
“Yes, devolution can be a
strong instrument for enhancing and achieving sustainable development,”
Jeranyama said. “I must warn though that if not properly managed, the model can
result in greater regional imbalances and glaring inequalities. The results
would therefore be quite opposite to what is intended.”
Mandaza echoed the same
sentiments, saying if not handled carefully, devolution could “exacerbate the
problem and lead to secessionism,” that is when regions break away from central
government and establish autonomous states.
“But if it was going to be done
along the lines of devolution in the United States then there would be no
problem,” Mandaza said. “The real fear is the fragility of the state. African
states are in the making and there is no nation state. This means that though
the states may have authority, there is no consensus.”
State fragility emanates from
the failure by many leaders in post-colonial Africa to build nations based on
consensus as evidenced by uneven development and rule by coercion which prompts
secessionist tendencies, as has been seen in Sudan where the southern parts
want to disengage from the north.
Jeranyama added that there are
regions that are richly endowed with natural resources and have the capacity to
generate a lot of revenue which they can plough back and in the process achieve
faster development and growth.
“The argument here is that
these regions view collection of the revenue by the centralised system and the
subsequent redistribution to other regions as an impediment to their own fast
growth,” said Jeranyama. “They consider the centralised system as a short-changing
one. These regions see great benefit from being allowed to raise and use those
revenues without the central government interfering.”
While central government has a
distributive function, the history of uneven development in Zimbabwe has seen
regions richly endowed with resources underwriting the development of other
areas.
Areas with mineral resources,
for example Manicaland, have functioned as a source, with the processing and
marketing of the minerals concentrated in the capital which then would create
employment opportunities in the surrounding areas.
Leonard Makombe
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/business/27061-fidelity-in-us500-000-loss.html
Thursday, 01 July 2010 19:24
ZSE-LISTED Fidelity Life
Assurance (FLA) made a US$ 500 000 unrealised loss in the first five months of
the year on the back of subdued trading conditions worsened by uncertainty
surrounding empowerment regulations and tight liquidity. The unrealised loss
resulted from the fall of the FLA share price.
FLA MD Simon Chapereka on
Monday told businessdigest that the company made the unrealised loss between
January and May after its share price tumbled owing to lacklustre trade on the
market.
In February the company
incurred a US$ 73 000 loss in investment income after citing low trade that
resulted from controversy surrounding indigenisation regulations gazetted in
January.
Investment income is capital
derived from premiums which insurance companies invest on equities before
paying out matured policies.
“We made an unrealised loss of
about US$ 500 000 on the ZSE between January and May because of a fall in share
prices,” said Chapereka on the sidelines of the company’s annual general
meeting on Monday.
FLA shareholders approved a
reduction in authorised share capital from the initial target after management
cited “prohibitive” administration costs.
This decision means that an
initial move to increase share capital from 100 million ordinary shares of a
nominal value of US$ 0, 01 each to 500 million shares was dropped for a new
plan that would double the authorised share capital for a reduced nominal value
of US$ 0,001 per share.
The businessdigest understands
that management sought shareholders’ approval after the registrar of companies
charged US$ 327 000 in administration costs. But the revised authorised share
capital would see the company being charged US$ 10 000.
“At the last Extra Ordinary
General Meeting of the company, members approved an increase in the authorised
share capital of the company from 100 million ordinary shares of a nominal
value of US$ 0, 01 each to 500 million ordinary shares of a nominal value of
US$ 0, 01 each. The cost of administering the shares has become prohibitive and
as such the company will require shareholders’ resolve, with or without
amendment,” said company secretary Nyaradzo Matindike before the annual general
meeting.
“The balance of the authorised
but unissued ordinary shares of the company, after the proposal, be placed
under the control of the directors for an indefinite period, to be issued in
compliance with the terms of the company’s Memorandum and Articles of
association and the regulations of the Zimbabwe Stock Exchange, provided that
no issue will be made which would effectively transfer the control of the
company without prior approval of the shareholders in a general meeting.”
This development comes after
FLA went on the market to raise US$ 1,7 million through a private placement to
boost its underwriting capacity. The insurance industry is on a confidence
building drive after years of hyperinflation eroded insurance policies.
Initially, the company was seeking US$ 2,5 million but had to review the figure
downwards due to liquidity challenges prevailing on the market.
Despite losses made on the ZSE,
Chapereka said the company’s micro finance arm performed beyond expectations
after it made US$ 1,7 million advances against a US$ 1 million target. He said
lending was expected to hit the US$ 2 million mark by weekend. - Staff Writer.
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/business/27059-coffee-output-plummets.html
Thursday, 01 July 2010 19:21
ZIMBABWE’S coffee production
has hit a record low since Independence following the chaotic land reform
exercise that reduced coffee growing estates to four from 120.
Statistics gathered after a
high level coffee stakeholder conference held last week in Mutare show that
organic coffee production mostly in Zimbabwe’s Eastern Highlands pl-unged to
300 tonnes in 2010 from a peak production of 15 000 tonnes in 1990 when farmers
raked in US$ 37,5 million from sales.
Production has been in freefall
for the past 10 years, signalling a threat to the livelihood of both commercial
and communal farmers in Manicaland and some parts of Marondera.
Addressing the conference,
outgoing European Commission (EC) head of delegation, ambassador Xavier Marchal
said the coffee sector fell after newly resettled farmers replaced the coffee
tree with the staple maize crop.
Coffee farmers need at least
four years to harvest the cash-crop.
“Today the coffee sector is
moribund, with 300 tonnes produced in 2010. A sheer embarrassment, particularly
for thousands of communal farmers who want to improve their livelihoods and
income, and become part of the prestigious world fraternity of growers of what
is called the “black gold”, in partnership with commercial coffee farmers,”
said Marchal.
“Unless there is immediate
intervention with a sustainable business plan, Zimbabwe will no longer be able
to produce fine Arabic Coffee. But with good immediate political will and
serious technical foundations, it is not an impossible goal to reverse this
trend.”
Arabic coffee was originally
brought to the country by members of the Moodle Trek in the 1890s, making it a
comparatively new crop to Zimbabwe. The crop nearly died out in the 1920s when
disease destroyed most of the small plantations, resurging in 1958 and
establishing itself in the 1960s.
The EC, according to Marchal,
contributed US$ 9, 2 million towards the STABEX fund, a compensatory finance
scheme to stabilise export earnings of the African, Caribbean and Pacific
countries. The EC, however, suspended assistance to Zimbabwe in 2006 after it
became apparent that beneficiaries of the controversial land reform exercise
were felling the coffee tree to grow maize.
Coffee Growers Association
chairman, Charles Taffs, this week told businessdigest that frequent farm
disruptions and a breakdown in the rule of law were affecting coffee
production.
“Most of the coffee growing
estates were taken over during the land reform exercise. Until we restore our
record on property rights, production will continue to be on the decline. We
now have four estates from 120,” said Taffs who also doubles as Commercial
Farmers Union vice president.
Ethiopia is the only African
country in the top 10 of coffee producing countries led by Brazil and Colombia.
Bernard Mpofu
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/business/27057-fraud-on-the-increase.html
Thursday, 01 July 2010 19:21
AT least 1 500 corporate crimes
were reported through the Deloitte Tip-offs Anonymous facility in the first
quarter of this year, indicating an increase in the prevalence of fraud.
Deloitte Tip offs Anonymous is
an independently managed ethics and fraud hotline service offered by Deloitte
risk advisory that allows an organisation’s stakeholders, particularly its
employees, customers, suppliers as well as members of the public to use
confidential and free channels of communication to report unethical activities
occurring within an organisation.
Speaking at a workshop on
managing the business risk of fraud through internal control systems, Deloitte
regional manager (risk advisory) for Zimbabwe, Zambia and Malawi, Willie Majo
expressed concern over the increasing number of fraud cases.
“Fraud, theft, embezzlement
abuse and corruption have reached alarming levels in all sectors of the
economy,” Majo said “The impact and risk of fraud is now much higher than
before. Between January and March 2010 more than 1 500 reports have been made
to the hotline,” he said.
He revealed that 25% of the
reports were on theft, 22% on fraud and 15% on corruption. The retail sector,
Majo said, accounted for 29% of the reports while the manufacturing sector made
up 14% with the banking sector accounting for 8% of the reports.
Majo said the risk had greater
impact since the adoption of multi-currencies last year because the currency’s
value remained stable unlike in 2008 where the value of the Zimbabwe dollar was
continuously eroded by inflation.
He said the major challenge
they faced since they introduced the facility was resistance from some company
executives who feared exposure through the facility.
Kudzai Kuwaza
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/business/27053-parastatal-performance-poser-for-moyo.html
Thursday, 01 July 2010 19:12
MINISTER Gorden Moyo is the new
patriarch appointed to shepherd state enterprises and parastatals. He is
expected to hit the ground running. Alas, that ground is infested with booby
traps.
Changing the fortunes of the
perennial under performing of state owned enterprises (SoEs) is no Disneyland
stuff, given the bone-deep nature of institutionalised profligacy and
misgovernance. Is Moyo being asked to flog a dead horse (Q)
Failure to de-mine the booby
traps will condemn the minister’s mission dead on departure.
From the get-go he has to budget
for the spectre of turf wars. His ministry potentially creates two centres of
power. Moyo has legal brick walls to contend with. Current laws mandate and
empower the SoE line minister to appoint and disappoint board members and set
their remuneration. Let us consider the Air Zimbabwe Corporation Act Chapter
13.02 to illustrate the poser. Part II 5(1) states that “The board shall
consist of six members of whom the others shall be appointed by the minister
after consultation and in accordance with any direction the president may give
him”.
Will the state enterprises and
parastatals minister have the guts to castrate the powers of the relevant line
ministers and deftly deal with “any direction the president may give him” (Q)
As they say, no guts no glory.
Some heavyweight punching is inevitable, for without influence on who gets into
and out of the SoEs boards, the SoEs minister’s revival agenda will remain a
pipe dream. Imminent pressure to shorten the channel between policy and
delivery might force the minister to take the bull by its horns, pushing for
amendments of acts governing SoEs and calling the employ of international
governance benchmarks as a spring board. Pushing for such amendments will
inevitably set the reformist minister on a collision course with line ministers
and possibly the presidency itself.
The Organisation for Economic
Co-operation and Development (OECD), a body comprising of “30 democracies” came
up with the OECD Guidelines on Corporate Governance of State Owned Enterprises,
currently the widely accepted international benchmarks on governance of SoEs.
The minister may turn to these guidelines in a bid to push a parastatal
governance reform agenda. Most likely, reference will be made to Chapter II
(The State Acting as Owner), particularly sections D and E.
Section D of Chapter II states
that “The exercise of ownership rights should be clearly identified within the
state administration. This may be facilitated by setting up a coordinating
entity or, more appropriately, by the centralisation of the ownership
function”. Section E of Chapter II states that “The co-coordinating or
ownership entity should be accountable to representative bodies such as the
parliament and have clearly defined relationships with relevant public bodies,
including the state supreme audit institutions”.
In my opinion, Moyo should push
for a Bill enabling the formation of a central SoE authority and the adoption
of an SoE governance code crafted along the lines of the OECD guidelines,
niftily steering final arbitration towards parliament. Taking the route of
amending specific acts governing each parastatal will more than likely give
rise to legislative and procedural logjams. Moyo could also, nimbly enter into
alliance with his finance counterpart to push for parastatals’ submission of
comprehensive remuneration schedules as part of statutory obligations.
Should the minister succeed in
getting over foreseeable legislative hurdles and selling the governance reform
proposals, space will be created to modernise our archaic and inadequate SoE
governance guidelines. At present, the SoE line minister is both the
nominations and remuneration committee. Statutes in force are silent on the
issue of board committees. Modern governance practices specifically provide for
the setting up of specialist board committees. From an HR standpoint, the key
to ensuring good performance is conducting rigorous and professional selection,
induction and rewarding of best talent. At board level a similar approach is
inescapable. With dearth of strategic talent, Moyo might have to turn to
children of the diaspora to improve the depth and width of the pool of
candidates from which to populate the boards of over 70 SoEs. However, for now,
the law does not allow non-residents to serve on boards of SoEs. Hopefully, any
statutory reforms will be alive to this legal hurdle.
Moreover, no formalised
procedures for evaluating the performance of board members of SoEs are provided
for in the current SoE acts. Performance evaluation is very critical. Utterances
from a recently “red-carded” minister, claiming that no agreed targets existed,
provide an object lesson. From an HR perspective, the utterances are very
disingenuous and serve to justify the minister’s dismissal. If the minister
were the captain of the Ghanaian soccer team, he would be happy to play the
entire 90 minutes without knowing which goal his team was attacking! This is
playing to the gallery. Likewise, SoE boards that play to the gallery must be
axed. Steve Covey gives the pillars of a good performance management system
namely: desired results, guidelines, resources, accountability and
consequences. Bemoaning lack of resources yet you’re not sure of desired
results is self-condemnation.
Moyo’s predecessor’s report
card is uninspiring, chiefly because he took a management approach to weighty
matters. Managers serve to maintain systems designed by others. His
mourner-in-chief tag, earned through habitual lamenting non-cooperation from
line ministries, suggests he could have been punching above his weight. His 11
somewhat-over-70-something salary schedule gathering success rate bolsters this
view. The SoE ministry needs an architect and not a maintenance manager.
Operation Bagration, a military
offensive masterminded by Russian generals, deftly executed in the summer of
1944, was a major turning point in World War II. Hitler’s armies were occupying
almost all of Eastern Europe, en route to Russia. In the face of an imminent
German onslaught, one Russian general came up with a daring plan that defied military
logic. According to the cunning plan, Russian armies and armoured tanks would
secretly approach through Belyorussia via an expansive swamp! That involved
Russian armies felling logs to pile over the swamp creating several highways of
skillfully layered logs. Special mat-like shoes for walking through swamps were
made, after learning the technology from natives living around the area.
Though Hitler’s intelligence
picked information about an impending attack, his army generals gave all
possible positions and directions, from which the Russians could approach,
except the swamps. The Russians succeeded in moving over tanks and men,
springing a summer surprise on the Germans, routing Hitler’s armies in the
blitz. That summer campaign repulsed the Germans from Eastern Europe,
culminating with the recapture of Poland, a key milestone, in the liberation of
Europe from Hitler’s then tightening octopus grip.
I read a sarcastic piece from
leadership expert John Maxwell titled Ten strategies for flogging a dead horse.
Suggested strategies include conferences to discuss how to make a dead horse go
faster and pretending the dead horse was not really dead. That the horse is
dead or not is for the minister to ascertain.
Moyo needs Operation Bagration
thinking to move through parastastal swamps.
In our African heritage it is
said orphans should take heed when parents counsel their children. Here is
hoping ‘orphans’ are listening.
=Has the Minister been
called to flog a dead horse (Q)
Feedback to
brettchulu@consultant.com .
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/business/27051-zim-mineral-wealth-no-match-for-debt.html
Thursday, 01 July 2010 19:08
ZIMBABWE’S mining wealth will
not provide sufficient resources to settle the country’s external debt even if
the government mortgaged its future fiscal revenues from the sector, the
International Monetary Fund (IMF) has said.
The IMF, in a comprehensive
commissioned report titled Zimbabwe: Challenges and Policy Options after Hyper
Inflation, said the country should focus on sound policies and debt relief if
it were to achieve growth sustainability.
The government has maintained
that the sale of diamonds would change the fortunes of the country but the
latest report commissioned by the IMF and based on various models discounts
this claim and encourages better policies instead.
Zimbabwe has stockpiled over
four million carats of diamonds worth about US$ 1,7 billion.
Zimbabwe’s external debt is US$
4,6 billion which is 104% of the country’s gross domestic product (GDP), a
level which is considered unsustainable.
“More importantly, the
government would not be able to generate significant primary non-mineral
surpluses to ensure its inter-temporal solvency in the foreseeable future,”
said the international financial institution in the report released last week.
“Going forward, a strategy
focusing on sound policies and debt relief would help achieve external and
growth sustainability in at least three ways.”
Zimbabwe needs sound policies
to support macroeconomic sustainability and economic growth and assist the
country “establish the track record needed for debt relief from official
creditors”.
The IMF said debt relief would
immediately increase Zimbabwe’s net wealth by reducing its debt obligations and
increasing the value of mining wealth through a reduction in country risk.
Should this happen, then
government would have access to fresh financing at lower costs, a development
that would create room for much-needed public investment. The move would also
facilitate growth in both mining and non-mining sectors.
Even the much hyped diamonds
would not do much as the extraction of the mineral is still subject to
certification and international price movements.
Diamond mining, like any other
business venture in Zimbabwe at the moment, is also very expensive as
operational costs are still very high, driven largely by the price of
utilities.
It is estimated that Zimbabwe
would produce as much as 1,1 million carats of diamonds this year and would
fetch an average US$ 100 per carat.
Diamond production would more than
double in two years’ time to around 2,4 million carats, the IMF added.
Diamond extraction costs vary
widely depending on the type of mining and the Zimbabwe Chamber of Mines
estimates that for a rich alluvial deposit, the cost per carat varies between US$
3 and US$ 10 while for a kimberlitic deposit the costs could be as high as US$
50 to US$ 70 per carat.
“Because a large share of
Zimbabwe’s diamond deposits is of the alluvial type, we assume extraction costs
of US$ 10 per carat under the optimistic scenario,” said the IMF. “Under a 17%
discount rate, we estimate the gross present value (GPV) of mineral resource
export receipts, including diamond proceeds, at US$ 9, 2 billion under an
optimistic scenario and US$ 3 billion under the more conservative staff
scenario.”
Apart from diamonds, gold and
platinum are the other minerals with a potential to earn the country
significant revenue streams, but they are also weighed down by high extraction
costs.
The Zimbabwe Chamber of Mines
estimates that the extraction costs for the two metals would be around US$ 502
per ounce if economies of scale were realised.
Per ounce costs would decline
after significant increases in production but at the current low production
levels, the costs of production in both gold and platinum are significantly
higher: US$ 800 per ounce for gold and US$ 1 000 per ounce for platinum.
Leonard Makombe
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/business/27045-tobacco-rebound-could-go-up-in-smoke.html
Thursday, 01 July 2010 18:59
POOR prices, shortage of
wrapping paper and high input costs threaten the rebound of tobacco production
next season, farmers have said. Farmers are holding on to their tobacco,
anticipating an increase in prices as a kilogramme was fetching an average US$
0, 90 throughout June.
Acting chief executive officer
of the Tobacco Association of Zimbabwe, Wilfred Nhemwa, said poor finance was
also hampering preparations for the next season.
“Farmers are now forced to sell
their crop at very low prices as they prepare for the next season,” said Nhemwa.
“We are hoping to see a change in the prices (both this season and next
season). The inputs are still very high as a bag of Compound D costs between
US$ 30 and US$ 35 while Ammonium Nitrate is between US$ 25 and US$ 30.”
Nhemwa said the prices were out
of reach for most of the farmers and it does not compare very well with the
prevailing cost in Malawi, for example, where a bag sells for US$ 7.
Government has also tried to
rebound the crop by providing subsidised fertiliser through the Grain Marketing
Board (GMB), which farmers said is not readily available.
Lovegot Tendengu, executive
director of the Farmers Development Trust (FDT) said inputs, unlike in the
previous seasons, were available at a reasonable cost and insisted that anyone
could get fertiliser and other inputs from the GMB.
“The Grain Marketing Board
(GMB) is offering fertiliser at US$ 15 per 50kg bag,” said Tendengu. “This is a
significant reduction on the US$ 38 charged per bag last year. We should
appreciate that fertiliser cost US$ 91 two seasons ago and stop complaining.”
Nhemwa said farmers would not
have complained of poor prices if cheaper inputs had been made available.
“There has to be a balance
(between the floor prices and input costs) if the production of the crop is to
rebound,” added Nhemwa.
Farmers have also faced serious
shortage of wrapping paper, leading to cases where growers would fail to
deliver the crop to the auction floors.
At least 77 million kgs of
tobacco are expected to go through the auction floors this season after the
Tobacco Industry and Marketing Board (TIMB) revised output upwards from the
projected 65 million kgs.
At 77 million kgs, Zimbabwe has
increased production on the 56 million kgs sold last season, setting the
foundation for a possible rebound but farmers said there could be stagnation as
a result of the problems faced this season.
Tobacco accounts for more than
50 % of agriculture exports in the country, translating to 30% of total
exports. Tobacco also makes up 10% of the country’s gross domestic product.
Based on the 2001 tax rate, the
crop, if grown on large scale farms which accounts for the bulk of the crop
produced, tobacco generates an estimated US$ 132 in government revenue for
every hectare that is put under the golden leaf.
The large scale commercial
farms produce an average of 2 500 kgs of tobacco per hectare put under the
crop.
Leonard Makombe
>
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/business/27041-zims-economic-recovery-stalls.html
Thursday, 01 July 2010 18:40
ZIMBABWE’S economic recovery
has stagnated and needs major policy measures to move the country forward, the
president of the Confederation of Zimbabwe Industries (CZI), Joseph Kanyekanye
has said.
Capacity utilisation increased
from an average 10% in 2008 to an average 32, 3% last year but it has stagnated
between 20% and 40%, Kanyekanye said.
He said while there was an
element of stabilisation, following the adoption of multiple currencies last
year, there was a threat of stagnation or even a reversal of the gains realised
so far “if some significant growth enablers such as power are not addressed
urgently”.
“Day to day operations of
business have largely stabilised and some few businesses are reporting improved
capacity utilisation especially those who are dynamic or have foreign
investors,” said Kanyekanye. “The major constraint is the absence of money to
fund both recurrent and capital expenditure. The few lines of credit available
are expensive to sufficiently address this problem.”
As such, Zimbabwe has to
realign policies and posture to deal with a crippling national debt and
perceived risk profile in order to attract funding and foreign direct
investment.
“We should realise that until
the reported returns from our Marange diamonds can be channeled to economic
recovery, we will need foreign funding for our economic recovery,” said
Kanyekanye. “A lot of service oriented companies have no business, but their
rates are too high. Quasi-government institutions responsible for these
utilities ought to be realigned to render service at acceptable rates to
customers.”
These quasi-governmental
institutions have to go through a painful adjustment in their internal systems
and this includes the unsustainable wage and salary bills which can cause an
unintended inflation spiral.
He added that industry had made
submissions requesting additional power for at least 18 hours during weekdays
as a way of boosting production. Some industries went for as much as three days
without electricity, added the CZI chief.
Kanyekanye said they had
participated in the formulation of the Mid-Term Fiscal Policy review and their
thesis was that it should be premised on mobilisation of internal resources
than relying on external funding as the country was let down last year.
The Short-Term Emergence
Recovery Programme, the first economic policy document last year, had
anticipated a lot of donor support which never materialised, leaving the
country in a deficit.
Kanyekanye, however, said
policy makers should not adopt policies which would upset the current
route to recovery, citing the
case of Indigenisation and Economic Regulations which “brought confusion in the
country.”
“This (Indigenisation
Regulation) did a lot of harm to monies which were coming into the country via
the stock exchange,” said Kanyekanye. “This has dried up and is cause for
concern."
He said industry wants the
empowerment policy implemented in a manner that is friendly to business and
that does not cause alarm.
Industry, Kanyekanye said, was
not against broad-based black economic empowerment but the manner in which it
was done.
“Suffice it to say that
industry is not the enemy of government but rather we complement each other and
above everything else we want this country to succeed,” he added . “We hope and
trust that the authorities will take our considered advice to work policies in
the context of government clusters and ensure henceforth that any policy
initiatives must be cluster consistent within government itself and perhaps
incorporate views from industry.”
CZI said they had always had an
eager ear from the Finance Ministry and their recommendations had been included
in major policy documents after the inauguration of the Government of National
Unity.
“Consultations between
government and business should ideally be used to bridge differences rather
than to consolidate them in the odd situation where they do occur,” said the
CZI president.
Kanyekanye added that most
companies needed to be recapitalized, a challenge given the prevailing
liquidity crunch.
Leonard Makombe
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/business/27043-import-ban-spurs-chicken-shortage.html
Thursday, 01 July 2010 18:56
THE Zimbabwe Poultry
Association has said production of day-old chicks is expected to increase in
the coming weeks. This comes after a ban on imported chickens increased demand
for chicks.
Poultry farmers lobbied
government to impose a ban on imported meat claiming that the meat was produced
from genetically modified methods, currently outlawed in this country.
Government in April responded
to the calls by introducing a three-month protectionist policy barring imported
chickens.
ZPA chairman Solomon Zawe this
week said the policy was good for the local industry which until the ban was
facing serious competition from relatively cheaper imports mainly from South
Africa and Brazil.
Imported chickens cost as low
as US$ 5 for a 2kg bird while local producers demand as much as US$ 7 for the
same bird.
“Shortages are in the short
term and resulted from a high demand that came after the ban. We, however,
expect more than 600 000 day old chicks in the coming week or two. This ban
gave us confidence although some of our members were not fully geared to meet
the high demand at the time of the ban. We now have the capacity and our
abattoirs are producing an average of 40 000 birds per week,” Zawe said.
He blamed some retailers for
putting “unrealistic mark-ups” saying the average producer price for a chicken
per kilogramme is between US$ 2, 16 and US$ 3.
Zawe added that some producers
are improving capacity following a scaling down of operations during the
hyperinflationary period of 2008 when stock feed supplies were erratic.
On the contrary, a group
identified as Concerned Chicken Producers have pressed the panic button, saying
Zimbabwe could be on the brink of a protein deficit. The group also says the
ban on imports would result in high cost of locally-bred birds.
“Animal protein availability in
Zimbabwe is now approaching crucially low volumes,” the group said. “Not only
have retail prices risen in the absence of competition, but chicken meat is becoming
short and, as expected, a small illicit market in imports has sprung up.
Despite an apparent seasonal decline in off take, Zimbabwe’s chicken producers
are now far off the mark in servicing demand. Estimates out of the industry
would suggest production levels are currently averaging 1,900 tonnes per month
versus consumer demand of near 3,500 tonnes per month in the formal market.”
“If the GMO card is played
across the spectrum of all foods and it was possible to police this, the
reality is that Zimbabwe’s supermarket shelves would be empty once more,” it
said. - Staff Writer.
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/comment/27105-comment-paying-the-price-for-disastrous-populism.html
Thursday, 01 July 2010 20:19
THE election of Julia Gillard
as the new prime minister of Australia last week might have gone unnoticed by
many Zimbabweans, most of whom are yet to appreciate the lessons to be drawn
from the manner in which she came to power.
Gillard replaced Australian
Labor Party leader Kevin Rudd who was swept to office in 2007 on a wave of
popular support but then lost it all by seeking to impose a 40% super-profits
tax to be levied on mining conglomerates such as BHP Billiton, Rio Tinto and
Andrew Forrest.
Rudd had miscalculated by
assuming that average voters would see the tax as hitting only the bottom line
of billionaire miners rather than the broader Australian economy. The public
saw it as damaging populism.
The fall of Rudd should be a
lesson to President Robert Mugabe and his cronies who are crafting laws to loot
companies under the guise of indigenisation.
The ill-conceived
self-enriching measure comes after the disastrous results of the land reform
programme that saw the national economy contract by as much as 40%, inflation
vaulting to over 231 000 000%, per capita GDP dropping by 40%, agricultural
output falling by 51% and industrial production by 47%. Direct foreign
investment all but evaporated.
Mugabe clearly refuses to learn
from his own mistakes which he touts as a victory for the people of Zimbabwe.
He continues to forge ahead with disastrous policies that can only hurt
Zimbabweans more.
Australians hold their leaders
to account when they promise to “soak the rich” in a way that smacks of crude
demagoguery and manifestly fails to serve the country’s interests. We should do
the same.
Indigenisation is proving a
disaster as investors head for the exits while ministers pretend that companies
are conforming with the new regulations. But Mugabe and his gang are blind to
the danger of killing the goose that lays the golden egg.
Only this week we read in the
state media that Presidential Affairs minister Didymus Mutasa made a brazen
threat against New Dawn Mining Corporation after it bought an 89% stake in a
Zimbabwean mine, contending that the transaction had strategic implications of
major national interest. In the process, Mutasa threatened all manner of probes
against the investors.
Mutasa is quoted as saying: “It
is manifestly wrong and indefensible for foreigners to play casino with
Zimbabwean assets in this way, whichever way one chooses to look at this
transaction, be it political, legal, economic or social.”
Mutasa behaves as if he is not
part of a government that has spent more than US$ 30 million on foreign trips
trying to lure investors to Zimbabwe. In fact, the claim that foreigners are
playing casino with local resources are misdirected because it is the likes of
Mutasa and his principals who are playing casino with the lives of Zimbabweans.
It is obvious that Zimbabwe needs whatever morsel of investment that comes its
way. After all, investors have an array of choices when it comes to committing
their resources and at this rate it is unlikely that Zimbabwe will be one of
them.
Already Mutasa and his cronies
have proved their adeptness at the casino with the country’s diamonds as the
Finance ministry has confirmed what everybody suspected, that the diamonds were
benefiting only a few well-connected individuals.
We draw comfort from the fact
that we are not the only sane voice out there. The Confederation of Zimbabwe
Industries shares our view that business is not the enemy of government. CZI
boss, Joseph Kanyekanye is quoted elsewhere in this paper as saying; “This
(Indigenisation Regulation) did a lot of harm to monies which were coming into
the country via the stock exchange. This has dried up and is cause for
concern.”
Kanyekanye added: “Suffice it
to say that industry is not the enemy of government but rather we complement
each other and above everything else we want this country to succeed.”
President Mugabe, like Rudd, is
miscalculating by assuming that average voters would see his policies as
hitting only the bottom line of business rather than the broader Zimbabwean
economy. The public will see it as damaging populism.
2010 07 02 -
The Zimbabwe Independent
2010 07 02
http://www.theindependent.co.zw/comment/27103-editors-memo-eu-mission-impossible.html
Thursday, 01 July 2010 20:17
THE Zimbabwe-European Union
(EU) re-engagement meeting is on in Brussels today with little hope that the
union will lift sanctions against the Harare regime given its failure to
address its democratic deficits. Energy minister Elton Mangoma is leading a
three-member delegation made up of Justice minister Patrick Chinamasa and
International Cooperation minister Priscilla Misihairabwi-Mushonga on a mission
impossible.
Mangoma’s task to convince the
EU to lift all forms of sanctions and measures in line with the September 2008
global political agreement (GPA) is a mammoth one because the inclusive
government has failed to meet benchmarks set by the bloc. Moreover, it is
failing to fully consummate the GPA.
Mangoma, Chinamasa and
Misihairabwi-Mushonga’s mandate is to convince the EU to lift sanctions
against a backcloth of the
appointment of constitutional commissions and the licensing of new newspapers.
They would argue that these developments exhibit Zimbabwe’s commitment to
deliver democracy, albeit at a glacial pace.
The sanctions were imposed on
Zimbabwe after it flagrantly violated provisions of the Cotonou Agreement to
uphold respect for all human rights and fundamental freedoms based on the rule
of law and transparent and accountable governance in line with other
obligations under international human rights treaties.
For the sanctions to be lifted
the EU set various benchmarks we were supposed to meet, among them the full
implementation of the GPA - a product of our own negotiations that gave birth
to the inclusive government in February 2009.
That we have failed to
consummate the GPA demonstrates the lack of seriousness of our leaders and
their quest to cling tenaciously to positions that do not move the country
forward. In fact they threaten to plunge us into civil strife.
Unless there is the will to
address our democratic deficits, it will be foolhardy for anyone to yearn for
the EU, Australia and the United States to lift the embargoes.
Reports of political
intimidation and violence during the current constitution-making outreach
programme are of great concern to the EU and other progressive organisations
such as the Commonwealth. Why are we failing as a nation to put an end to all
forms of political intimidation, including farm seizures, and ensuring
prosecution of perpetrators (Q)
Some politicians see short-term
gains from these heinous acts at the expense of the country.
We need to robustly address our
democratic and human rights deficits if the sanctions are to go. One way of
doing that, and which will cost us nothing, is the abrogation of provisions of
the Public Order and Security Act relating to the conduct of political
activities such as public meetings and demonstrations, which is limiting the
freedom of association and which is used as an instrument of political
repression. Sadc’s Mauritius terms for elections which underline public
participation are also violated by Posa.
While government has through
the Zimbabwe Media Commission licensed new newspapers, little has been done to
free the mass media. Airwaves remain the preserve of the publicly-owned but
state-controlled ZBC with no indication as to when private broadcasters would
become operational.
If sanctions are to go
government should abrogate the Access to Information and Protection of Privacy
Act and Criminal Law (Codification and Reform) Act to ensure freedom of
expression. There is also need to withdraw charges against journalists in the
country and guarantee those in exile a safe return.
These are government sanctions
against the media that could be immediately lifted if the political will was
there.
Other benchmarks to be met
include the immediate implementation of all court rulings, ensuring an
independent audit of the land reform, and enforcement of all bilateral
agreements on the promotion and protection of investments.
The Fishmongers Group, made up
mainly of EU member states, which met in Oslo on June 1 was unequivocal on what
benchmarks Zimbabwe should meet before sanctions can be lifted and
balance-of-payments support and lines of credit extended to it.
From this it can be seen the
ball is in our court to have the sanctions lifted. Otherwise, Mangoma’s mission
will be stillborn.
By Constantine Chimakure
2010 07 02 -
The Zimbabwe Independent
2010 07 02
Thursday, 01 July 2010 20:12
THE Constitutional
Parliamentary Committee (Copac)’s order barring journalists from reporting on
official proceedings of the outreach programme threatens to return Zimbabwe to
the dark days of muzzling the media.
Copac’s fears that news reports
on official proceedings would influence the content of the planned new
constitution ring hollow. The outreach programme is one of the most critical
processes in the constitution- making project. Public views gathered from this
process are expected to form the core content of this country’s new governance
charter. Conducting such an important process under the cover of darkness would
be criminal and further dents Zimbabweans’ waning trust in Prime Minister
Morgan Tsvangirai and President Robert Mugabe’s union.
Why Copac would want to keep
views expressed by the public under wraps fuels suspicion that some underhand
political dealings are at play. And this government’s record of abandoning
legitimate processes for under-the-table dealings makes it all the more
frightening. The inclusion in the Zimbabwe Media Commission of people who
failed parliamentary select committee interviews held in the presence of
journalists is instructive.
Already several journalists
have been barred from covering some of the outreach meetings which spells doom
for fair and factual coverage of the outreach process. Without official access
to information, journalists will resort to sourcing stories from politicians,
most of whom are obviously biased. The results could be disastrous.
The constitution-making
process, a key project in laying the foundation for stabilising the country’s
polarised population, is worryingly a complete mess. Banning journalists from
reporting on this shambolic exercise only compounds the problem.
The violence, intimidation and
imposition of views recorded during the first two weeks of this critical
process have not come as a surprise to many. The media and civil society had
forecast this situation.
It was only too predictable,
especially following the dismal failure of the chair-warming national healing
organ to drive a meaningful programme to heal the wounds inflicted on the
population as a result of decades of state-sponsored violence.
Much of the chaos affecting the
outreach programme could have been avoided if Copac had taken the media and
civil society’s warnings more seriously. But then these politicians don’t
learn.
Muzzling the press will not
change the reality that this process has been hijacked for political expediency
and that horse-trading between Zanu PF and the two MDC factions is inevitable.
Zimbabwean journalists have for the past decade been working in one of the
world’s most difficult and dangerous environments, characterised by violence,
intimidation and arrests and exclusion from official events.
The coalition government or at
least its formation had filtered hope that the
media environment would change.
Copac’s blackout dims this hope, and renews fears that Zimbabwean authorities
prefer to keep the population in the dark. Copac joint chairman Paul Munyaradzi
Mangwana, as a former Information minister, should know better than to stop
journalists from covering events. That is their job.
Partners in this failing
coalition government tried something similar when they were negotiating the
power-sharing arrangement. The result was unbalanced, uninformed and distorted
reporting that did not help Zimbabweans one bit.
By Farai Mutsaka
2010 07 02 -
DIAMONDS
By: Reuters
1st July 2010
JOHANNESBURG
Global miner Rio Tinto said on
Thursday it had not suffered significant loss from Zimbabwe's ban on diamond
exports and the interruptions to shipments from the country were limited.
Zimbabwe banned all diamond
exports on May 28 until stones from the government's controversial Marange
fields were certified by industry regulators.
"The ban has caused
limited interruption to shipments," a Rio spokesman told Reuters by email
in response to questions. "There has been an impact (on finances) but it
is not significant for Rio Tinto," he said.
"Rio Tinto is in
discussions with the government of Zimbabwe and is hopeful of resolving the ban
shortly."
Rio Tinto owns 78% in Murowa
mine, which produced 124 000 ct last year.
Murowa, together with privately
owned River Ranch, are both certified to export diamonds by the Kimberley
Process (KP) certification scheme, an international initiative to ensure trade
in diamonds does not fund violence.
Zimbabwe is in a dispute with
the KP over the Marange diamonds but this week said it would soon start exports
of the stones after regulators from 70 countries failed last week to agree to
suspend trade in diamonds from Zimbabwe.
Rights activists allege serious
abuses by security forces deployed by the Zimbabwean government to stop illegal
diamond digging after up to 30 000 panners descended on the poorly secured
Marange fields in 2006.
Early this year, Zimbabwe's
unity government spooked investors when it published rules that force
foreign-owned companies to sell at least 51% shares to locals.
A government minister recently
said the rules had been revised to encourage investment.
"We are encouraged by the
approach of the new government but seek greater clarity around the investment
environment before investment decisions can be considered," the Rio Tinto
spokesman said.
Edited by: Reuters
2010 07 02 -
http://www.news24.com/Africa/Zimbabwe/Zim-gay-activist-denies-charges-20100701
2010-07-02 08:15
Harare
A Zimbabwean gay rights
activist on Thursday pleaded not guilty to breaching censorship laws when he
appeared before a magistrate's court accused of possessing pornography.
Ignatius Muhambi, an accountant
for Gays and Lesbians of Zimbabwe, and office administrator Ellen Chademana
were arrested in a police raid at the association's offices in May.
Both are free on bail, and
Muhambi formally entered a plea of "not guilty" in court on Thursday.
Prosecutor Memory Mugabe said
police found pornographic material during the raid on the office.
"A search was done in the
office and one pornographic DVD and pornographic booklet was recovered from the
office being used by the accused," Mugabe told the court.
Mugabe said both contained
graphic images of men having sex.
At the time of their arrest,
the two also had been accused of insulting President Robert Mugabe, but that
charge was not read out in court.
Homosexuality is illegal in
Zimbabwe, although GALZ is allowed to operate.
President Mugabe, no relation
to the prosecutor, has railed against the gay community for more than a decade,
once calling gays "worse than pigs and dogs".
In March, he said efforts to
include gay rights in a new constitution were "madness".
Neighbouring South Africa is
the only nation on the continent that gives equal rights to gays.
Mhambi's trial resumes on
Monday while Chademana's case will begin on Wednesday.
- AFP
2010 07 02 -
http://www.news24.com/SouthAfrica/News/2-000-apply-for-asylum-daily-20100701
2010-07-02 08:07
PRETORIA
Over 2 000 foreign immigrants
apply for refugee status or asylum across the country each day, Deputy Home
Affairs Minister Malusi Gigaba said on Thursday.
Briefing the media in Pretoria,
he however said he was not aware of any asylum seekers specifically from the 32
countries taking part in the World Cup.
There were seven home affairs
offices across the country, but the department was looking at introducing
refugee facilities at borders so immigrants would not have to travel to city
centres.
SA the country of choice
According to a United Nations
report, South Africa was the country of choice for refugees, specifically those
from Botswana, Mozambique, Zambia and Tanzania.
"Police officers deal with
large numbers of people, many of which are economic migrants," he said,
adding that because of low or mid-level skills the asylum-seekers were unable
to get employment in their own countries.
There were about 1 000
applications daily at the Musina border post, "hundreds" in
Johannesburg, up to 800 in Pretoria and "large numbers" in Cape Town.
In Port Elizabeth and Durban however applications were negligible.
The other office in Marabastad,
Pretoria was frequented mainly by Zimbabweans seeking asylum.
In addition to its seven
offices the department was looking at opening a new one in Bloemfontein and an
additional one in the Western Cape.
- SAPA
2010 07 01 -
http://www.thezimbabwemail.com/zimbabwe/5537.html
01 July, 2010 11:35:00
Obert "Chiadzwa"
Mpofu - "The issue of selling the diamonds was never discussed in
Cabinet," said MDC Minister.
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JOHANNESBURG
A statement by Zimbabwe's
mining minister, Obert "Chiadzwa" Mpofu, that the Cabinet had
approved the sale of diamonds from the controversial Marange fields has been
dismissed by another minister as "lies" and accused the Mines
Minister of getting out of control
"It was clear from the
meeting that Cabinet agrees with the immediate sale of our diamonds,"
Mpofu told The Herald daily newspaper in an interview. He had just returned
from a gathering of the Kimberley Process Certification Scheme (KPCS)
an international initiative
designed to stem the flow of conflict diamonds - in Tel Aviv, Israel.
A cabinet minister and member
of Prime Minister Morgan Tsvangirai's Movement for Democratic Change (MDC), who
declined to be identified as protocol prevented him from discussing cabinet
meetings with the media, told IRIN: "The issue of selling the diamonds was
never discussed in Cabinet."
The MDC formed a unity
government with President Robert Mugabe's ZANU-PF in 2009 after violent
elections that saw ZANU-PF lose its majority in parliament for the first time
since independence from Britain in 1980.
The MDC minister commented:
"He [Mpofu] has taken to misleading Zimbabweans and the world on the
diamond issues. First, he lied that the recent meeting in Israel had resolved
that Zimbabwe could sell its diamonds, when no such decision had been reached.
Now, he is telling the world that the Cabinet has resolved to sell the
diamonds, when no such decision has been taken."
The KPCS meeting in Tel Aviv
was dominated by the issue of Zimbabwe, but failed to find any resolution to
the sale of diamonds from Marange, which has been the scene of alleged human
rights abuses, including the military using adults and children as forced
labourers. In 2008 hundreds of "illegal" miners were reportedly
killed and many others beaten and raped in an operation to clear the 66,000
hectare area of diggers.
The KPCS, formed in 2002, meets
twice a year, bringing together governments, the diamond industry and NGOs to
police the trade in "blood diamonds". Its 49 members represent 75
countries, covering about 99.8 percent of global production.
The World Federation of Diamond
Bourses (WFDB) said in a statement after the Tel Aviv meeting that "diamonds
originating from Marange should not be purchased until approved by the
Kimberley Process Working Group on Monitoring. As no approval has yet been
given, any member found doing so will be subject to WFDB disciplinary
procedures."
The World diamond Council will
hold an unprecedented mini-summit at its July 2010 annual meeting in St
Petersburg, Russia, to try to break the impasse over Zimbabwe.
Andy Bone, director of
international relations at the De Beers diamond company, told IRIN that should
Zimbabwe go ahead and sell Marange diamonds, it would have "very serious
consequences for the KP and Zimbabwe", and urged all sides to continue
engaging in dialogue, "which is vitally important to millions of people
around the world [in the diamond industry]."
The Marange diamond fields are
said to be some of the richest finds in a century; Zimbabwe has reputedly
amassed a stockpile of four million carats of diamonds worth about US$ 1.7
billion, which they have been unable to sell on the international market
because of the KPCS ban.
Annie Dunnebacke, a campaigner
for Global Witness, a UK-based NGO that was among the prime movers in the
creation of the KPCS, and now monitors international trade in conflict diamonds,
told IRIN that the Zimbabwe question had led to civil society "constantly
assessing [the KPCS] ... And if we step away, it's pretty much the end of it
[the KPCS]."
"The fact that Zimbabwe
did not walk away from the KP, and that Mpofu sat in a room [in Tel Aviv] in
discussions for more than 10 hours until six in the morning seems to suggest
Zimbabwe has a lot to lose as well," she said.
2010 07 01 -
http://www.thezimbabwemail.com/zimbabwe/5536.html
01 July, 2010 10:01:00
By Methuseli Moyo
“We used Makoni to stop both
the old man and Tsvangirai; whose track record we did not feel would make him a
good president.
INTERIM ZAPU leader who was
Robert Mugabe's Home Affairs Minister during farm invasions Dumiso Dabengwa
says losing 2008 independent presidential candidate, Dr Simba Makoni was “a
braai stick” he used to stop both Mugabe and Morgan Tsvangirai from winning a
majority to change the course of events.
Dabengwa made the remarks while
addressing ZAPU branch executive representatives at Gwamayaya communal lands in
Nkayi North in Matabeleland North province on Wednesday, June 29. Gwamayaya is
250kms north of Bulawayo. The event was attended by ZAPU Council of Elders,
ZAWU and ZAPU Youth Front members from six wards.
Dabengwa said after failing to
convince Mugabe to step down for a younger leader in Zanu-PF, and the failure
by Tsvangirai to accommodate the other faction of the MDC, he was convinced
that a one-on-one election between the two would have more disastrous
consequences for the country, no matter who won.
Simba Makoni....A mere braai
stick
“We used Makoni to stop both
the old man and Tsvangirai; whose track record we did not feel would make him a
good president. UMakoni wayeludlawu lokos’inyama. Nxa usuqedile ukosa inyama
uyalulahla udlawu uzidlele inyama yakho (Makoni was a braai stick. You put away
the braai stick when you have finished roasting and then enjoy your meat,” said
the former Zipra intelligence supremo to cheers from the branch executives.
Dabengwa said it was apparent
that Tsvangirai would be like Mugabe after winning, “in his attitude and
actions” because he wanted MDC-T to dominate, even to the extent of failing to
accommodate the other faction of the MDC.
He added that his hope was that
the then mediator to the Zimbabwe crisis, former president Mbeki of South
Africa would broaden the talks to include civil society, churches, all parties
and war veterans after the elections for a more sustainable solution, but he
did not. “He (Mbeki) continued to confine the talks to the three parties. That
was a mistake. That is why there is no progress in the Inclusive Government.
You needed all the forces to be included.”
Dabengwa added that the
post-election scenario had resulted in a much safer political environment
though, hence now was the time to revive ZAPU. “We achieved our aim of stopping
both devils from being in power alone. We are now eating the braai. That is why
ZAPU is back. Let us enjoy the braai. It is now anyone’s game and we are in
with a very strong chance,” he said.
Dabengwa said ZAPU belonged to
all the people of Zimbabwe. “Nkomo did not form ZAPU, like (Ndabaningi)
Sithole, (Enos) Nkala, (Robert) Mugabe and others formed Zanu. That is why
Mugabe does as he pleases because he thinks the party and the country belong to
him. ZAPU belongs to the people.”
Party supporters told Dabengwa that
there were Zanu-PF, MDC, and MDC-T agents going around decampaigning ZAPU
saying Dabengwa would go back to Zanu-PF.
ZAPU elder Mrs Thenjiwe Lesabe
assured them that “ZAPU is back for good”.
“ZAPU is back and in serious
business. Even Mugabe knows that. That is why he conveniently avoids ever
mentioning the words ZAPU and Dabengwa because he knows very well what that
means. He would rather castigate his partners in government, not ZAPU. Dabengwa
assisted Mugabe, under Nkomo’s orders, to come back to Zimbabwe from Ghana
during the sixties. They have no answer to ZAPU. Mugabe was made publicity
secretary for ZAPU. Waye njengo Methuseli (He was like Methuseli),” she said,
referring to the ZAPU spokesperson Methuseli Moyo, who was also present.
“I am proud to be lead by real
hero and soldier Dumiso because I know him very well. He was never Zanu-PF in
his heart even during the Unity Accord period. He would have joined Zanu when
he was imprisoned for five years during Gukurahundi. Zanu promised him freedom
within minutes if he left ZAPU and joined Zanu, but he and his late fellow
Zipra commander Mafela (Lookout Masuku) would rather die in prison than join
Zanu,” Mrs Lesabe said.
On his release from prison,
Dabengwa refused to join the unity government until Nkomo, his
commander-in-chief, ordered him to do so, Mrs Lesabe added.
“Most of us were very excited
about being ministers and riding the new Mercedes Benz, but Dabengwa was not
impressed. It took an order from his commander-in-chief to join Zanu, and being
the soldier he is, he obeyed that order but his heart was not in Zanu. Nkomo
told him “lala ngenxeba mfanami, iZanu izaqeda abantu,” (pretend you don’t feel
your hounds my boy, Zanu will kill all the people (if we don’t join them).”
Mrs Lesabe said she, Dabengwa
and other ZAPU elders wanted to lay the foundation of the party, and then let
the younger generation takeover.
Giving a vote of thanks, a
community leader said the people were happy ZAPU was back. “We were like
children who watch their mother bring different men at home and call them dad,
but they know their real father. Siyamaz’ubaba (we know our real father),” he
said.
One of the ZAPU elders
dramatized the excitement when he said he had brought his son to the event
“just to have a glimpse of the man that even Mugabe fears”.
“I have been telling him about
Dabengwa and what a brilliant soldier he was, and that even Mugabe fears him.
My son insisted on coming along with me to see that man (Dabengwa),” said,
pointing to his son, who looked in his late 30s.
A kraal head interrupted
proceedings at one time and asked to be allowed to walk over to the VIP tent
and shake “the heroes’ hand”, and said afterwards he would now die peacefully.
- (ZimEye, Zimbabwe)
2010 07 01 -
http://www.thezimbabwemail.com/zimbabwe/5535.html
01 July, 2010 09:10:00 Peta
Thornycroft
Johannesburg
The motor-mouthed rogue Justice
Minister Patrick Chinamasa, of the ZANU-PF Party is the Europe for talks.
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Mugabe’s targeted sanctions fate
One of Zimbabwe President
Robert Mugabe's closest lieutenants is at the European Union to discuss lifting
travel and financial restrictions on the ZANU-PF Party and some of its
companies.
Zimbabwe Justice Minister
Patrick Chinamasa, of the ZANU-PF Party, along with members of Prime Minister
Morgan Tsvangirai's Movement for Democratic Change, and a smaller MDC faction,
are meeting with European Union officials in Brussels.
They are discussing
eight-year-old travel and financial restrictions against Zimbabwe President
Robert Mugabe's ZANU-PF Party and some government institutions judged to have
financially supported ZANU-PF.
The meeting follows months of
negotiations to have the European Union travel ban waived for Chinamasa. During
the past decade, the European Union, the United States and other Western
nations have imposed restrictions against Mr. Mugabe and his close allies for
alleged political repression and human-rights abuses.
Mr. Mugabe says the
restrictions, which he calls sanctions, have caused the collapse of Zimbabwe's
economy. Most financial analysts in the private sector in Harare say the
economy collapsed because Zimbabwe's main foreign currency earner, agricultural
exports, ended when Mr. Mugabe began seizing productive white-owned farms that
grew most of the valuable crops.
South Africa, the Southern
African Development Community and the African Union have called for an end to
the restrictions imposed by the E.U. and the U.S.
One of the restricted companies
is the state's Zimbabwe Mining Development Corporation, which is in joint
ventures with two mining companies extracting rough stones from controversial
diamond fields in southeastern Zimbabwe.
According to Israeli diamond
analyst, Chaim Even-Zohar, even if the international regulator certifies those
rough stones for export, few international banks would be able to authorize
payment for them, because of the E.U. and U.S. restrictions.
The visit by the Zimbabwe
delegation to the European Union is part of the outstanding issues of the
political agreement that underpins the 16-month old unity government. The
agreement committed the three political parties to ensure the E.U. and U.S.
restrictions were lifted.
European Union diplomats in
southern Africa say there are differing views on retaining the Zimbabwe
restrictions among its 35 member states. VOA
2010 07 01 -
http://www.thezimbabwemail.com/zimbabwe/5534.html
01 July, 2010 09:01:00
Next month, the Minister of
Finance, Tendai Biti will announce his mid-year economic statement.
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The Role of the Diaspora to
Zimbabwe’s reconstruction revisited - By Lloyd Msipa
Next month, the Minister of
Finance, Tendai Biti will announce his mid-year economic statement. Prime
Minister Morgan Tsvangirai’s Newsletter spoke to the Minister to find out which
issues are likely to influence the review.
Q: Minister, kindly update us
on the first half economic performance (Q)
Tendai Biti: The first quarter
of the year was very challenging. The economy went through a period of sickness
and there were a number of key things that were the architects of that
sickness. First, was the issue of lack of capital. Lack of capital in the form
of foreign direct investment which was affected in particular by the
publication of the indigenisation regulations.
The regulations had a major
effect on the capacity of the economy to attract investment and an immediate
multiplier of capital flight. We had huge capital flight in the first quarter
of the year and that manifested itself sharply and acutely on movement of share
prices on the stock market. The prices were depressed and continue to be
depressed.
The second deficit of capital
was in respect of lack of lines of credit. There were no lines of credit in the
economy in the first half of the year impacting on the cost of money, interest
rates shot up to as high as 70 percent. This money was short term, 90 day
facilities. This affected the capacity of industries to recover. We aimed at 60
percent capacity utilization by December 2010, but this does not look likely.
The third aspect of lack of
capital was the Vote of Credit, that is, budgetary assistance from donors and
partners. As I indicated in my statement at the end of April, we had only
received US$ 2.9 million out of a target allocation of US$ 810 million.
The fourth challenge was inflationary
pressure from a target regime of under one percent to the current 6.1 percent.
Inflation offsets economic reward. The fifth challenge was the lack of fiscal
space. We had a situation where 70 percent of Government revenues went towards
salaries, which salaries were in fact challenged because the average salary for
civil servants is US$ 150.
So we had a situation where
civil servants went on strike but we had no capacity at all to improve their
salaries. The other challenge had to do with bank supervision while the
capacity to attract cheap credit to Zimbabwe was also a challenge in the first
half. I made a trip to China and I came back empty handed and part of the
problem is Zimbabwe’s US$ 6 billion debt. We have to deal with this as a matter
of urgency.
The bottom line is that the
first quarter of 2010 was a very challenged one. There were spikes that were
put in the path of economic recovery, challenges that threatened to derail even
the little stabilization matrix that we had put in place this year. What it
means is that the mid-term statement which I will be delivering in July is
going to be very critical.
The good thing is that in the
second quarter of the year, there are clear indications that we have reversed a
number of the distortions that occurred in the first quarter of the year.
Q: What is really affecting
this economy (Q)
Biti: We have structural and
non-structural issues that are affecting this economy. The biggest structural
issue that is affecting this economy is a false accumulation model that is
based on economic activity that doesn’t generate sufficient rent, which is
profit or surplus. When an economy cannot develop sufficient surplus then it
cannot develop. The false accumulation in Zimbabwe is premised on agriculture
and mining. We are producing goods in raw value, there is no value addition and
the same applies to mining.
We have to move to an
accumulation model that creates surplus. So technology must come into it, value
addiction and increased manufacturing too. Unless and until this economy
fundamentally graduates from these non-rent accumulation models, we have got a
problem. The second accumulation model is a capital deficit, a capital
kwashiorkor, a marginal disinvestment that has taken place in this economy
since 1965, since the Unilateral Declaration of Independence (UDI).
There has been marginal
disinvestment and we are paying the price for that in the form of a collapsed
infrastructure and enablers. For instance, if you look at the electricity
sector, Kariba was built in the 1950s, after that there was no major investment
in electricity. And yet there has been marginal disinvestment from this economy
and that is a problem. So we have got a 45 year deficit of marginal capital
disinvestment in the country.
What it means is that the
current infrastructure is hardly different from the infrastructure that was
there in 1965, whether we talk of roads, railway any other sectors.
The third major challenge is
technology. We are 23 years behind in technological development. There are some
companies in Zimbabwe that are using outdated software. There’s technological
kwashiorkor in this country. The other major structural issue is to do with our
politics. We have got a cyclical political base. We go through cycles of
crises, every short-term period we encounter a political bomb.
When politics is too cyclical
it affects the economy. We have not delinked our politics from the economy so
much so that when politics sneezes, the economy does not just catch a cold but
goes straight into intensive care. Part of the solution to these structural
issues is to have a common vision. This country does not have a common vision.
That is why at any given time the decision making in Government is dialectic,
that is reflective of an absence of a common vision.
This makes our task here at the
Ministry of Finance difficult. But we are not despondent and there will be
critical answers that we will provide in the mid-term statement.
Q: How are we performing in
terms of revenue collection (Q)
Biti: We have met our target of
US$ 120 million revenue collection per month but this economy for it to be
normal we must collect about US$ 300 million per month. The reason why we are
not able to collect the kind of revenue we need is because of the marginal
disinvestment and the net effect of the disinvestment is that this economy has
been terminal. It has slowly been dying.
Q: But Minister, how can we
fail to raise only US$ 300 million per month when ZMDC and the Mines Ministry
have confirmed selling diamonds (Q)
Biti: The Government of
Zimbabwe has not received a single cent from diamond sales. It’s important that
we get a certificate from the KP. Our diamonds cannot be categorized as blood
diamonds. Blood diamonds are conflict diamonds and used to fuel conflict as in
Liberia and Sierra Leone. That is not the case in Zimbabwe.
However, this is not to say
that there are no issues of non-compliance around the KP process, alleged
issues around forced labour, human rights abuses, smuggling and inconsistent
records between what has been exported and what is alleged to have been mined.
There is a legal dispute with ACR. All these issues must be resolved in the
context of the KP process.
The KP must allow us to sell
our diamonds, but must then come to Zimbabwe to help resolve these issues. It
will be very unfortunate if the KP does not allow us to sell the diamonds
because they will be punishing the people of Zimbabwe. We can’t pay for
electricity, we can’t pay our civil servants and yet we are sitting on one of
the finest find of alluvial diamonds in the history of mankind.
You cannot punish ordinary
citizens because of the omissions and commissions of the elite political
leadership. If you have issues with an elite political leadership allow
diamonds to be sold but reign in on the political elite because they will still
sell diamonds outside the KP at the expense of the poor. Myself, sitting in
this cold office will feel the heat because I have to pay civil servants and
pay for electricity and other Government expenses.
Whatever mistakes that have
been committed in the past must provide lessons for the KP and Zimbabwean
authorities to come up with a new matrix that avoids the omissions and
commissions of the past. The KP must help us to stop smuggling, and to ensure
that whatever is sold, Government will receive a chunk and how to come up with
an investment model that benefits the communities around the diamond fields.
Q: As a lawyer, how does the
ACR legal issue affect the sale of diamonds from Chiadzwa (Q)
Biti: As a disciple of the rule
of law, I believe court orders must be respected. We are in this struggle for
the rule of law, democracy and justice, so there should be no excuse for breach
of the rule of law.
Q: Have the ghost workers been
removed from civil service payroll (Q)
Biti: The audit is being
conducted by the Minister of Public Service and we want this to be completed so
that we rationalize the numbers on the payroll.
Q: Minister Biti, in the past
you have complained about parastatals milking the fiscus, what is the position
now (Q)
Biti: The majority of
parastatals are ill-run. They are being treated like little kingdoms. The
disaster at Noczim proves beyond reasonable doubt that these entities are
little fiefdoms of inefficiency and arbitrage.
Q: Let us talk about
corruption, Minister. Is there anything that the Government is doing to contain
corruption (Q)
Biti: There is fundamental
institutional corruption in this economy. I’m afraid that we have legitimised
corruption and the culture of impunity. People get away with murder. The
solution goes beyond the legal solution because you can have 20 anti-corruption
commissions in Zimbabwe but you cannot stop corruption. You need to deal with
the structural issues that are at the epicentre of corruption. We need to deal
with the corruption drivers. Some of the problems are shortages in this
non-performing economy.
This creates distortions and
shortages and that is when middlemen arise. We have to deliver and match
demand. We are now used to shortcuts. There are so many people who now have
false role models, where you find a crook driving a Hummer, and you think
that’s a role model. Our value system has been debased and this must be
corrected.
2010 07 02 -
http://www.zimonline.co.za/Article.aspx?ArticleId=6176
by Patricia Mpofu
Friday 02 July 2010
PAUL MANGWANA . . . Joint
chairman of the parliamentary committee leading the constitutional reform
process
Harare
Reports that villagers
attending meetings on the drafting of a new constitution are reading from
scripts allegedly prepared by President Robert Mugabe’s ZANU PF party have
plunged Zimbabwe’s constitutional reforms deeper into controversy.
Rights groups accused ZANU PF
of coaching villagers what to say and said in some areas Mugabe’s party had
appointed some of the villagers to speak on behalf of the rest. The selected
spokespeople were reading from prepared notes when responding to questions by
constitutional outreach teams, according to rights groups.
One of the country’s leading
rights groups, ZimRights, said its representatives attending outreach meetings
at Matepatepa Country Club and Number One Play Center in Bindura, Mashonaland
Central province observed suspected ZANU PF supporters reading from scripts
written for them by their party.
ZimRights said: “Both meetings
were characterised by high levels of tension between opposing party members.
That participants had to rely on party written scripts to make contributions is
a serious cause for concern given that a constitutional making process must be
non-partisan and people-driven.
“Clearly in this case people
are being denied a right to freely air out their views.”
The Crisis in Zimbabwe
Coalition (CZC) that brings together several civil rights and pro-democracy
groups said at one meeting at Sikosana primary school in Makonde district in
Mashonaland West province only five people were making contributions with the
rest of the more than 1 000 villagers present sitting in silence.
“There was no debate at all,
those that participated were referring to position papers that had been
distributed by their parties with the rest of the people merely acting as
cheerleaders,” the CZCZ said in a report.
The exercise to gather the
views and ideas of the public they want included in a proposed new constitution
began last week. But there is mounting doubt on the credibility of the outreach
programme, amid reports of serious administrative glitches, resurgent political
violence and intimidation largely blamed on ZANU PF militants and the security
forces.
ZANU PF and the armed forces
want the new charter based on a controversial draft constitution known as the
Kariba Draft prepared by Mugabe’s party and the then opposition MDC parties of
Prime Minister Morgan Tsvangirai and his Deputy Arthur Mutambara.
The 2007 Kariba Draft - that
the MDC parties now oppose - retains a strong presidency and allows Mugabe to
stand for another two terms in office.
ZANU PF denies that its
supporters are committing violence and intimidation, while the Constitutional
Parliamentary Committee (COPAC) that is leading the reforms yesterday vowed to
press ahead with the exercise saying it was making progress despite the
teething problems it had faced.
“Although there were challenges
when the process started, there has been some progress in areas where meetings
have been held,” COPAC joint-chairman Paul Munyaradzi Mangwana told journalist
at a press briefing in Harare on Thursday.
Mangwana, who is a member of
ZANU PF, said logistical problems that had seen meetings canceled were being
addressed with stationery and recording equipment delivered to the provinces
for use by the outreach teams.
But Mangwana said the COPAC was
still battling for resources to keep the reforms going.
“One of our major challenges
continue to be that of funding,” said Mangwana. “We still have limited
resources and this is what is hampering our process. We have brought this to
the attention of the government and donors. We are currently working on a
supplementary budget.”
The cash-strapped coalition
government is unable to raise resources for the exercise and is banking on the
United Nations Development Programme to mobilise funds from international
donors.
Douglass Mwonzora, another of
the three COPAC chairmen, said the commission would review the performance of
the secretariat to try and improve management of the reforms.
Unconfirmed reports suggested
the commission might dismiss the secretariat it blames for poor management of
the outreach exercise.
Mwonzora, a member of
Tsvangirai’s MDC party, said: “We are currently reviewing the outreach and
everything associated with it, ranging from preparations to duties of the COPAC
staff to find out what actual went wrong.”
The proposed new constitution
is part of reforms agreed by Mugabe, Tsvangirai and Mutambara that are meant to
entrench democracy in Zimbabwe.
The coalition government is
expected to call fresh elections once a new constitution is in place although
there is no legal requirement for it to immediately do so.
Zimbabweans hope a new constitution
will guarantee human rights, strengthen the role of Parliament, as well as
guaranteeing civil, political and media freedoms.
ZimOnline
.
2010 07 02 -
http://www.zimonline.co.za/Article.aspx?ArticleId=6175
by Own Correspondent
Friday 02 July 2010
Harare
Zimbabwe police want to
interview Kimberley Process monitor to the country Abbey Chikane in connection
with charges against a top rights activist they accuse of communicating false
statements prejudicial to the state.
A senior police officer Henry
Dowa, investigating the case against Centre for Research and Development (CRD)
director Farai Maguwu, said he travelled to South Africa to meet Chikane but
did not find him because the monitor was away in Israel attending a KP meeting.
"I went to South Africa, I
missed him (Chikane)" Dowa told the court during a bail application by
Maguwu on Thursday.
"He had gone to Israel to
attend a conference. I (wanted) a statement regarding the conservation he had
with Maguwu and the documents he was given," the police said in the first
official confirmation that police want to use information given to the monitor
by Maguwu as evidence against the activist.
Maguwu, whose CRD has exposed
smuggling and other illegal activities at the controversial Marange diamond
mines, was arrested more than three weeks ago after he allegedly wrote reports
detailing rights abuses by security forces at the diamond field. He faces up to
20 years in jail if found guilty.
The activist was arrested days
after meeting Chikane who was in the country to assess whether operations at
Marange met the diamond regulator’s standards.
The CRD boss allegedly handed
Chikane a top state secret document detailing cases of rights abuses by
soldiers and police stationed at Marange. The KP monitor handed the document to
the Zimbabwean government triggering a chain of events that eventually led to
Maguwu’s arrest.
The KP last week failed to
reach consensus on Chikane’s recommendations that Zimbabwe should be allowed to
export Marange diamonds because it had met all conditions set by the regulator.
The magistrate will make a
ruling on the bail application today.
ZimOnline
.
2010 06 29 -
BOOKMARK ASR
dated 29 JUNE 2010
JAG’S NEW OFFICE
ALL FARMERS PLEASE BE ADVISED
The JAG Trust is on the move.
Our premises of the past eight years have been renovated and sold and we are
moving to more aesthetically pleasing and quieter surrounds.
As of the 1st JULY 2010, we
will be at our new offices at No 2, Routledge Street, MILTON PARK.
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