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"Resolve Issues Then Certify Zimbabwe Diamonds"

2010 07 01 -

http://changezimbabwe.com/index.php?option=com_content&task=view&id=2980&Itemid=2

Written by CZ Correspondent

Friday, 02 July 2010

Finance Minister Tendai Biti has repeated his assertion that the government has not received a single cent from diamond sales, begging the question, where did the money go (Q)

But to rescue the country from its current plight, he said, the Kimberley Process (KP) must quickly help Zimbabwe resolve the current problems around its diamonds so that she can begin exporting diamonds ethically, he said.

While Zimbabwe's diamonds should not be equated to the “blood diamonds” of Liberia and Sierra Leone, he said, there were issues of non-compliance which must be resolved in the context of the KP process.

He mentioned alleged issues around forced labour, human rights abuses, smuggling, inconsistent records between what has been exported and what is alleged to have been mined and the legal dispute with African Consolidated Resources, a British company in which former Army Commander Tapfumaneyi Mujuru is also said to have interests.

All these issues, he said, had to be resolved and it was important that Zimbabwe receive 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.”

He had been asked how Zimbabwe was failing to raise the $ 300 million per month revenue that is required for the civil service to run efficiently, yet the Zimbabwe Mining Development Corporation and the Mines Ministry had confirmed that they had sold diamonds. He is currently collecting less than half of that.

Biti said the Government “has not received a single cent from diamond sales... The KP must allow us to sell our diamonds, but must then come to Zimbabwe to help resolve these issues (forced labour, rights abuses, smuggling, inconsistent records and the legal dispute).

He did not mention the illegal allocation of mining rights to two companies which seem to be controlled by Zanu (PF) and military bigwigs.

“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.”

“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.”

On the ACR legal issue, Biti only said, 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.” For the rest of this interview and more stories from the Prime Minister's newsletter Go To This Link

Last Updated ( Friday, 02 July 2010 )


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Cops investigate NRZ US$ 15 million fraud

2010 07 01 -

http://www.zimbabwemetro.com/news/cops-investigate-nrz-us15-million-fraud/

Metro Staff Writer on Jul 2nd, 2010 and filed under Local News.

Nkululeko Sibanda

Thursday, 01 July 2010 20:33

Bulawayo police are investigating a £10 million fraud case at the National Railways of Zimbabwe (NRZ) involving some of the rail firm’s senior executives in what could showcase the free-for-all situation at parastatals.

Gibson Boston Siziba, a senior auditor with the NRZ yesterday filed a police report implicating the state-owned rail firm’s finance director Patrick Bondayi and former police commander Frank Msutu, who is NRZ senior manager for security operations.

According to the police report (IR 4737/10), Bondayi allegedly worked in cahoots with other yet to be named officials in the finance department to misappropriate funds through over-invoicing of spare parts. Bondayi was suspended three months ago to facilitate investigations when details of the alleged heist surfaced.

Police and NRZ auditors are now keen to trace the whereabouts of the money, with indications that the funds could be held in offshore accounts. Police also believe the £10 million could just be the tip of the iceberg, and are launching a wider investigation.

Police spokesperson, Inspector Mandla Moyo, confirmed that officers at Bulawayo Central Police Station were handling the case.

“I can confirm that a report was made to the Bulawayo Central Police station where an official at the NRZ allegedly misappropriated funds amounting to over US$ 15M. Already, investigations are under way. That is all I can say at the moment,” Moyo said.

A separate case was reported on Msutu’s alleged failure to act on cases of fraud reported to him. According to initial report 4738/10, Msutu was alerted of the fraudulent activities involving senior managers at the parastatal but he allegedly sat on the cases.

“Sometime in April 2010, the now accused was handed over a case of serious fraud by the audit department of the National Railways of Zimbabwe (NRZ) to investigate and bring to book the accused (Bondayi),” reads the police record.

“The accused failed dismally to do anything in his capacity as security officer, even bringing the matter to the police for further investigations. (As a result of his actions) The accused defeated the

course of justice. The accused had no right to defeat the course of justice or protect the accused for fraud involving 10 million pounds.”

NRZ sources said the audit team descended on the parastatal three weeks ago and has been combing the company’s books following reports of massive plunder.

A number of senior managers could soon be arrested as police act on the results of the audit report, NRZ sources said.

Efforts to get a comment from the NRZ general manager, Mike Karakadzai proved fruitless yesterday.

NRZ, once a carrier of choice for low-budget travellers, is facing collapse because of alleged mismanagement and poor revenue generation.


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Biti says KP must allow Zimbabwe to sell diamonds

2010 06 28 -

http://zimbabwereporter.com/politics/1245.html

28 June, 2010 11:13:00 By Staff Reporter

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Finance minister Tendai Biti

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HARARE Tendai Biti, the Zimbabwean Finance Minister and secretary-general of the Movement for Democratic Change (MDC), has said the Kimberley Process must allow Zimbabwe to sell its diamonds, pleading that the unity government urgently needed money to pay civil servants and pay for electricity and other governmental expenses.

Biti was quick to clarify that the diamond sector must make extra efforts to police trade in Zimbabwe diamonds, but must allow the country to sell its diamonds on humanitarian grounds, saying excesses by the political leadership should not be used as basis to punish ordinary Zimbabweans who deserve to enjoy the US$ 1.7 billion monthly windfall projected from the sale of diamonds.

"Our diamonds cannot be categorized as blood diamonds," Biti said. The Finance minister was speaking in a recorded Q and A with the Prime Minister's newsletter. He said excesses recorded that soldiers killed over 200 civilians during the bloody Operation Hakudzokwi to seize control of the Marange diamond fields, should be forgiven and we move on. "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." Kimberley Process is a powerful watchdog body set up to stamp out trade in conflict diamonds. Biti bemoaned the state of the economy with its low revenue base and 70 per cent of the meagre collections being swallowed by wage payments, and said money from diamonds can help improve the economic situation of Zimbabwe. He said the economy needs technology, value addition and better manufacturing.

Zimbabwe's once-vibrant economy was shattered by a decade of world-record hyperinflation that has left half the nation dependent on international food aid, while unemployment was last estimated at 94 per cent.

"The KP must allow us to sell our diamonds, but must then come to Zimbabwe to help resolve these issues," Biti said.

"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."

The World Diamond Council is worried that gems from Zimbabwe were mined amid violence in violation of rules established to curb so-called conflict diamonds that fuel civil wars. Biti said: "The Government of Zimbabwe has not received a single cent from diamond sales. It’s important that we get a certificate from the KP. 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 ave been mined." The Kimberley Process, under which governments issue certificates to legitimate diamond exports, has helped reduce illicit diamonds to less than one percent of the total, the diamond industry and activists say.

Biti, the person seen as most likely to succeed Morgan Tsvangirai as leader of the MDC, also complained about corruption in high places in the wide ranging interview. Biti said the economy has gone through a period of "sickness". He bemoaned shortages of capital which were worsened by the publication of the controversial indigenisation regulations, and lack of 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," said Biti. He warned of resurgent inflation, and bemoaned the limited 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." Zimbabwe government workers marched through the capital in February in a job boycott against low wages, in a sign of growing impatience with the country's unity government.

"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."

The unity government formed 16months ago to end a protracted political crisis says it needs at least $ 10 billion to reverse a decade of economic decline, but is struggling to get foreign aid.

Zimbabwe Reporter 2010 C


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COPAC bosses face axe over chaos

2010 07 02 -

The Financial Gazette

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http://www.financialgazette.co.zw/top-stories/4670-copac-bosses-face-axe-over-chaos.html

Friday, 02 July 2010 14:55

Levi Mukarati and Kudzai Bare

Staff Reporters

HEADS are set to roll at the Constitution Select Committee (COPAC) as it emerged this week that the Management Committee of the constitution-making process is seething with anger over the chaos characterising the exercise. Compounding the situation are reports of politically-motivated violence and intimidation in and around the country during the COPAC-led outreach exercise.

Several civil society organisations monitoring the outreach programme have released reports chronicling incidents of violence in Mashonaland Central, Midlands, Masvingo, Manic-aland and Matabeleland provinces.

Sources privy with the outreach process said the COPAC secretariat, specifically national coordinator, Peter Kunjeku, faced an uncertain future over the way he and his team handled the logistical aspects of the exercise.

Kunjeku’s fate hinges on the decision of the COPAC Management Committee which met yesterday to discuss the logistical problems threatening the smooth running of the constitution-making process.

The COPAC secretariat is accused of poor management, which has seen some members of the outreach teams stranded due to lack of transport and accommodation while several public meetings have failed to takeoff after COPAC officials could not turn up.

Eric Matinenga, the Minister of Constitutional and Parliamentary Affairs, yesterday said concerns had been raised within COPAC and from the outreach teams over the poor management of the exercise.

Douglas Mwonzora, one of the co-chairpersons of COPAC, said the committee responsible for the outreach met on Tuesday to review progress on the consultative process with a view to ringing some changes.

“We are currently reviewing the outreach and everything associated with it, ranging from preparations to duties of the COPAC staff to find out what actually went wrong,” said Mwonzora.

“We are going to meet again as the select committee over the issue of management of the process, but we are not targeting an individual,” he said.

Contacted for comment on his looming axing, Kunjeku professed ignorance saying he was not aware that his job was on the line.

Some members of the outreach teams are reported to have been booted out of hotels after COPAC and its major financer - the United Nations Development Programme - failed to pay for their accommodation.

Three civil society members shadowing the outreach process, were on Sunday allegedly assaulted by ZANU-PF agent provocateurs, sustaining varying degrees of injuries.

The monitors were deployed by the Zimbabwe Peace Project, the Zimbabwe Election Support Net-work and the Zimbabwe Lawyers for Human Rights, which have dispatched a total of 420 independent monitors.

In separate reports, the Zimbabwe Human Rights Association (ZimRights) reported violence in Mudzi District in Mashonaland East where four huts allegedly belonging to suspected Movement for Democratic Change supporters were torched adding that in Manicaland Province, two monitors -Tapera Mavhe-revhedze and Godfrey Nyarota and driver, Cornelius Chengu - were arrested last week and charged under the Access to Information and Protection of Privacy Act. There are accusations that ZANU-PF supporters have been seen reading from prepared scripts during outreach meetings specifically at Matepatepa Country Club and Number One Play Centre in Bindura, Mashonaland Central .

“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 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 absence of the police at both meetings did not help matters either,” said ZimRights in its latest report.

In another report, Crisis in Zimbabwe Coalition, said it had noted with concern that participants were being intimidated.

The organisation cited an incident at Sikhosana Primary School in Makonde District in Mashonaland West, attended by about 1 200 people on June 28 where only five participants contributed.

“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,” reads part of the organisation’s latest report on the COPAC outreach programme.

Monitors have also reported lack of participation in Matabeleland South where COPAC outreach teams arrived late at most venues.

COPAC teams in Matabeleland South, according to reports, were accused of censoring the views of the public.

Discussion or any talk of the early 1980s disturbances in the province was allegedly “outlawed” during the outreach exercise in some of the areas of Matabeleland South.

In Sadza and Manyarira areas in Mashonaland East, Crisis in Zimbabwe Coalition claimed that the district administrator “was moving around in an unmarked white vehicle coaching people on what to say just before the COPAC meetings started in different wards. The truck was seen at Manyere and Rupere primary schools.”


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Siege mood grips MDC-T

2010 07 02 -

http://www.financialgazette.co.zw/top-stories/4672-siege-mood-grips-mdc-t.html

The Financial Gazette

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Friday, 02 July 2010 15:24

Dumisani Ndlela, Staff Reporter

SENIOR Movement for Democratic Change (MDC-T) members were reported to be stampeding into the safety of party leader and Prime Minister Morgan Tsvangirai’s patronage network after a shock Cabinet reshuffle last week which left perceived power contenders scurrying for cover.

Political analysts and commentators said Prime Minister Tsvangirai, who for long had watched as his party lurched from crisis to crisis in protracted power struggles that triggered a split in 2005, has abandoned diplomacy for a head-on battle with internal rivals as the party faced an elective congress next year.

But in the process, the Machiavellian among the party’s faithful were now jostling to keep company with Tsvangirai as a siege mood enveloped Harvest House, the MDC-T headquarters, following the reshuffle.

“It’s now clear who represents the future - it’s Tsvangirai and we might see those who had rallied around other personalities coming back to seek favour with the party president,” a source said.

Alois Masepe, a political analyst and veteran of Zimbabwe’s opposition politics, said Tsvangirai was now battling to bring cohesion into the strife-torn party, which recently dismissed a number of its youths who had assaulted key party executives for allegedly campaigning for Biti ahead of the party’s elective congress.

The youths, obviously backed by some key power brokers within the party, now part of an inclusive government along with President Robert Mugabe’s ZANU-PF and another MDC formation led by Deputy Prime Minister, Arthur Mutambara, accused the party directors of stifling Tsvangirai by directing party financial resources towards projects that propped up Biti’s standing within MDC-T structures.

Tsvangirai dismissed Energy and Power Development Minister, Elias Mudzuri, a former Harare executive mayor hounded out of Town House by ZANU-PF, which replaced him with a commission led by Sekesai Makwavarara. Fidelis Mhashu, who had been a Housing Minister, was also sacked, together with two deputy ministers, to concentrate on reviving party structures in Chitungwiza.

Masepe said the politically alert would position themselves around Tsvangirai “for a future in politics”.

Insiders and sources closely watching developments in the party, said Mudzuri suffered not for backing Biti, but for personally cultivating a following within the party that threatened cohesion.

“As a former mayor, he had a following of his own and a standing as a potential leader of the MDC-T,” a source said, indicating that as party organising secretary, Mudzuri had won the hearts of different provincial structures and was poised for the limelight, although he came nowhere closer to threatening Tsvangirai’s incumbency.

Tsvangirai said the dismissed Cabinet ministers had failed a performance review after 16 months, but insisted they were being redeployed to the party to reinvigorate its structures.

But MDC-T insiders said Biti had been the target.

Tsvangirai moved Theresa Makone, seen as part of an elite circle of advisors together with husband Ian Makone, who is Tsvangirai’s permanent secretary - and gatekeeper - in government, from public works to the more powerful Home Affairs, where she will be co-minister with ZANU-PF's Kembo Mohadi.

Before the formation of the inclusive government, there had been a protracted fight for control of the ministry, until an agreement to share the portfolio was reached.

Jameson Timba, part of the team of influential advisors around Tsvangirai, was promoted from deputy minister to Minister of State in the Prime Minister’s Office, taking over from Gorden Moyo who was reassigned to another ministry.

Even when it was clear that the MDC-T party was ravaged by internal power struggles between him and Biti, Tsvangirai had initially kept his sword aimed at external foes in a bid to portray that he is clearly in charge and unchallenged.

“I am shocked by the energy and the magnitude of the efforts to undermine our agenda,” Tsvangirai told reporters in May, blaming outsiders on the eruption of violence at Harvest House, in a fight that apparently pitted his own supporters as well as those of party secretary-general, Biti, the combative former student leader who is currently Minister of Finance in the inclusive government.

Describing reports of a power struggle between him and Biti as “sustained attempts to divide the person of the secretary-general and myself, the office of the secretary-general and that of myself”, Tsvangirai maintained: “The SG and I have been comrades in this struggle for many, many years and have stood together throughout this time and we will not allow the enemies of real change to succeed in derailing the people’s cause.”

But the reshuffle came as a potentially devastating hammer blow to Biti, who has so far not reacted to reports that Tsvangirai could be spoiling for a head-on battle with him.

One analyst said the Prime Minister was trying to “smoke Biti out, to force him to declare his ambitions or his loyalty”.

Although Biti survived, he was nonetheless “punished through proxies”, said University of Zimbabwe political scientist, Eldred Masunungure, who is also executive director of the Mass Public Opinion Institute.

Masunungure said about the reshuffle, “Tsvangirai is now going for the hammer.”

He said Tsvangirai was sending a message to Biti in the hope that his party's secretary-general would “be able to decode (the message) and act accordingly”, describing those that were purged from Cabinet as “collateral damage”.

The first sign that Tsvangirai was determined to deal with Biti’s perceived ambition for power was when he diluted Biti’s powers as secretary-general last month, some weeks after the violence that rocked his party, and awarded them to his deputy, Tapiwa Mashakada.

Party insiders said this had been done to allow Biti to concentrate on his demanding government role as Minister of Finance, and allow Mashakada, who had been instrumental in the rejuvenation of the party, control of party administration.

However, Mashakada, who had been left out of Cabinet appointments at the formation of the inclusive government last year, was rewarded with a post as Minister of Economic Planning, taking over from a Tsvangirai confidante, Elton Mangoma, who replaced Mudzuri.

It has been suggested that the appointment of Mashakada into Cabinet was meant to spite Biti, who is said to have advised against his appointment into Cabinet last year.

Masepe said Tsvangirai had made a strategic mistake when he appointed Biti into Cabinet, together with Mudzuri and MDC-T secretary for information, the verbose former youth leader, Nelson Chamisa.

These, he said, are the party’s foot soldiers and so it was inappropriate to incorporate them into temporary government structures.

“There’s now this perceived power struggle between power players,” said Masepe.

“He’s now paying the price for his mistakes. There is an election next year and the party structures are not there.”


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Outreach - Chiefs up in arms over status

2010 07 02 -

http://www.financialgazette.co.zw/comment/4646-outreach-chiefs-up-in-arms-over-status.html

The Financial Gazette

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Friday, 02 July 2010 14:05

Open Forum with Joram Nyathi

ZIMBABWE is still sorely divided. The divisions go beyond political parties and elections. They go beyond the spat between politicians and some NGOs. A meeting of the Council of Chiefs hosted by the Joint Monitoring and Implementation Committee (JOMIC) on June 10 2010 in Harare, itself historic for the issues raised, exposed a lot of divisions between the chiefs and the government. More accurately, it revealed a lot of anger by the chiefs against the government, and also the hostility which exists between the chiefs and political parties in the government.

JOMIC itself, which has held more meetings since then with hundreds of traditional leaders in Masvingo, Gweru and Mutare, is getting more than its own fair share of attacks. We have more meetings lined up in Matabeleland, Mashonaland West, Central and East. So far JOMIC has held meetings with at least 400 traditional leaders at four venues in June alone.

The original aim was for JOMIC to organise meetings with traditional leaders as a follow up to our historic inter-party provincial workshops held last year and earlier this year. We felt it was vital to involve traditional leaders in our efforts to end inter-party violence and general hostility among Zimbabweans along party lines. This should also help in national healing, the constitution-making process and in achieving transitional justice. Traditional leaders are closer to the communal people than JOMIC can ever hope to be, and wield a lot of influence in their communities.

So far the meetings have been a no-holds-barred affair. We can only hope that this has a cathartic effect on the traditional leaders. For our part, the meetings are a historic platform for traditional leaders to air their deeply felt grievances we never knew existed. They describe themselves as a “wounded institution” which is under threat, especially under the new constitution where they say they are unfairly under-represented.

So, first things first. The traditional leaders are bitter that they were never involved in the negotiations which resulted in the signing of the Global Political Agreement (GPA), which in turn gave birth to the new government. That explains why Article 14 which refers to traditional leaders is so barren, they complain. They were never given a platform to give their input. In a nutshell, they have been treated with contempt.

There is more. The traditional leaders view the inclusive government as an affair between the parties to the GPA. Why was it necessary, they ask, to approach them only now, almost two years since the inauguration of the inclusive government in February 2009 (Q)

Why were they never consulted from the beginning (Q)

Where was JOMIC all along, they wanted to know (Q)

The politicians must have something up their sleeve.

The political parties have accused them of supporting one political party or alternatively, of partisan distribution of food assistance, without being given a chance to respond, they said. The truth, they pointed out, lay elsewhere. They did not support a political party. They supported causes.

As chiefs who had lost their lands or were displaced by the colonial regimes, it was only natural for them to support a party which championed their cause - the restoration of their powers and their lands. In short, to them, the liberation struggle was not about political office. It was about restoring their dignity. They have lost their traditional authority over their people and natural resources which are being exploited by foreigners while government, for its part, has failed to provide them with transport, decent roads and accommodation.

They are bitter that their status in society has been undermined at every stage. The post-independence government has done no better than the colonial one in trying to strip them of their powers. The inclusive government is the worst because, they point out, “they want to consign us to the dustbin of history. They are waging a war against traditional leaders”.

So far as they are concerned, Zimbabwe’s problems are neither political nor economic. They are a manifestation of the erosion of our “values and lack of national identity” as demonstrated by a lack of respect for traditional institutions as represented by chiefs. They are the repositories of culture and traditional values, yet they see a determination by politicians to sideline them.

The chiefs have expressed anger that the local political leadership appears to revere the Queen of England and King Mswati more than they do their own chiefs. Instead of politicians engaging them to resolve problems affecting the country, the traditional leaders wondered aloud why they only read about Zimbabwe’s problems being referred to foreigners in the form of SADC and President Jacob Zuma.

The traditional leaders are dismayed that after being excluded from active politics through the Traditional Leaders Act, they are also being shunted out of the constitution-making process.

While many interest groups have muscled their way into the various outreach teams, chiefs have been left clutching at straws without any one representing their interests. Why, they ask, are NGOs, whose constituency is never known, being allowed more representation at the expense of traditional leaders who command huge rural constituencies and are very popular (Q)

The traditional leaders warn that it is futile for any institution to dream of ending problems of violence without their direct involvement. It is their role, they say, to spearhead peace-building initiatives and national healing, but they are either being sidelined altogether or simply being ignored despite their close connection to the perpetrators and victims of violence.

They say the problem is that once government appears to ignore them, people in turn treated them with contempt. They are viewed as a cultural relic, hence, the crisis of “values and identity”.

Their unanimous position is that elections are not a priority because they will not resolve the country’s problems. The environment is not yet conducive for fresh elections, they say, given their divisive nature. What should be given priority is national healing led by traditional leaders.

The irony is really that the same political parties which agree with traditional leaders about a hostile political and legal landscape are at the same time posturing about the need for elections now. It is the political parties which are divided on whether elections are the ultimate answer to the nation’s problems.

There are those who feel an election will end the power struggles in government. Others however counsel caution, observing that conditions on the ground are not conducive for a violence-free election. Talk of elections pushes party activists into the trenches, thus undermining the national healing process which should guarantee free elections. There is a danger of political parties playing to the gallery over election now, but knowing these will be judged neither free nor fair, thus leading to more sterile negotiations and squabbles which can only take us to the past decade.- Joram Nyathi is JOMIC communications manager.


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Delay in ratifying Bippa costs Mwana Africa - (BIPPA)

2010 07 02 -

http://www.chronicle.co.zw/inside.aspx?sectid=9873&cat=8

Byo Chronicle

Friday, July 02, 2010

Business Reporter

Delays by South Africa to ratify the Bilateral Investment Promotion and Protection Agreement (Bippa) with Zimbabwe is stalling disbursement of a US$ 10 million loan facility advanced by the Industrial Development Corporation of South Africa to refurbish Mwana Africa’s Freda Rebecca gold mine.

Mwana Africa agreed to a finance facility with the IDC last November and in March, the corporation’s board approved the final terms of the facility to fund the second phase of the mine’s refurbishment exercise.

However, Mwana Africa said it had not been able to drawdown on the loan because South Africa had not ratified the Bippa between the two countries.

The Bippa was signed on 27 November last year and ratified by the Zimbabwe Government in May.

“Drawdown of the facility remains subject to certain conditions, most notably the provision by the Export Credit Insurance Corporation of South Africa of political risk insurance for the facility, which is itself subject to ratification of the Bilateral Investment Promotion and Protection Agreement between Zimbabwe and South Africa.

“The agreement is aimed at providing security of tenure to South African investments in Zimbabwe, and Zimbabwean investments in South Africa. The agreement was signed by the respective governments on 27 November 2009, and was ratified by the government of Zimbabwe on 11 May 2010.

“In South Africa, the agreement has been adopted by the Portfolio Committee on Trade and Industry in the National Assembly and by the Select Committee on Trade and International Relations in the National Council of Provinces. Mwana expects that, in the coming weeks, the instrument will be put forward for adoption by the South African parliament, after which notice of the agreement’s ratification will complete the process,” Mwana Africa said in a statement accompanying its results for the year ending 31 March.

It said the company was also waiting for the Reserve Bank of Zimbabwe’s External Loans Co-ordinating Committee to approve the mortgage charge over the land on which Freda Rebecca plant is built and the operation of offshore accounts.

“Mwana Africa is working with the ELCC and IDC to agree amendments to the security package, compliant with the current exchange control regulations in Zimbabwe,” said the company.

It said it would also undertake a programme to assess the mine’s lifespan as access to the second tranche of the loan required reserves that last at least 10 years.

Gold production at Freda Rebecca is expected to rise from 30 000 ounces a year to 50 000 ounces once the second phase of the refurbishment is completed.

The mine reopened in October last year after years under care and maintenance.

Since its re-opening, almost 12 000 ounces of gold have been mined.

Meanwhile, Bindura Nickel Corporation has prepared plans for the resumption of operations at its Trojan mine and concentrator, Mwana Africa chief executive Mr Kalaa Mpinga has said.

In a statement accompanying the results, he said preparatory work had started in areas critical to the resumption of operations which require limited expenditure.

“Further plans have been drawn up to restart and enhance the efficiency of BNC’s other mines, smelter and refining assets. In addition, the company continues to assess the potential to develop the Hunters Road project,” he said.

BNC was placed under care and maintenance in 2008.


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Detained diamond abuse investigator denied bail

2010 07 02 -

http://www.swradioafrica.com/news020710/diamond020710.htm

SW Radio Africa news - The Independent Voice of Zimbabwe

By Lance Guma

02 July 2010

Harare Magistrate Donald Ndirowei on Friday succumbed to state pressure and denied bail to diamond abuse investigator Farai Maguwu. The director of the Centre for Research and Development has been locked up in remand prison for nearly 4 weeks, while police and prosecutors play cat and mouse games to prolong his detention. Mugabe’s regime accuses him of publishing ‘false’ reports on human rights abuses committed at the diamond mines in Marange.

The magistrate accepted what has been described as frivolous claims from the investigating officer Detective Inspector Henry Sostein Dowa, that he needed more time to investigate the matter. Dowa claims he tried, but failed to meet ‘key witness’ Abbey Chikane, the Kimberly Process monitor accused of reporting Maguwu to the police. Defence lawyers are adamant Dowa lied that he had gone to South Africa to meet Chikane, because the KP monitor was actually attending a meeting in Israel at the time.

The lawyers were also able to show that Dowa does not even have a passport and they had called his Zimbabwean mobile phone number during the time he claimed he was in South Africa. Each time the phone rang and Dowa deliberately cut the line. Dowa in his defence claimed he received assistance from the South African police to travel there without documentation.

Another excuse thrown up by the police was their claim that they had engaged INTERPOL (the international police organization) to investigate the whereabouts and identity of people who allegedly corresponded with Maguwu. These "extraterritorial investigations" needed time, they argued.

Beatrice Mtetwa, one of Maguwu’s lawyers, is said to be already working on an appeal. ‘The general basis is that the ruling is removed from the evidence led in court and the unchallenged testimony by Farai, the contradictory and self-destructive testimony by Dowa and the fact that no proof of any pending relevant investigation was tendered,’ the lawyers will argue.

Another member of the defence team, Tinoziva Bere, said; ‘We have reached a stage where the state gets all it asks of the court and the accused suffers in jail. We have also reached a stage where it matters not what the arguments or evidence reveal, the stakes are so high, nothing matters. It is disappointing but not discouraging. As long as nothing kills him, one day they will have to watch him walk free.’

Bere was particularly damning about what he called the silence of the two MDC parties, in the coalition government with ZANU PF. ‘It is just sad that by joining a government, some people who used to care about human rights and were victims themselves have now forgotten that people are more important than balancing a budget with ‘blood diamonds.’


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Ministers Mutasa and Makone try to free arrested relative

2010 07 02 -

http://www.swradioafrica.com/news020710/mutasa020710.htm

SW Radio Africa news - The Independent Voice of Zimbabwe

By Lance Guma

02 July 2010

Just a week after being sworn in as co-Home Affairs Minister in the MDC-T cabinet reshuffle, Theresa Makone has got herself into a compromising situation by trying to assist another minister get his son released from police cells. It is alleged that Makone and Presidential Affairs Minister Didymus Mutasa went to Mbare, Matapi and Stodart police stations in Harare to demand the release of Mutasa’s son Martin.

Forty-seven year old Martin Mutasa, notorious ZANU PF activist Themba Mliswa and George Marere were all arrested on Monday after trying to seize shareholding worth US$ 1 million from a company owned by white businessman Paul Westwood. The trio threatened Westwood to cooperate, claiming they had authority from Mugabe and Indigenization Minister Saviour Kasukuwere to take over 50 percent of his Noshio Investments Limited.

While human rights activist Farai Maguwu is fast approaching 4 weeks in remand prison over cooked up charges, Makone appeared to prefer spending her energy trying to help secure the release of the son of a ZANU PF Minister. Police officers complained that both ministers had tried to ‘intimidate’ them into releasing Martin. Although Martin and his colleagues were granted US$ 400 bail each, the state invoked the notorious Section 121 of the Criminal Procedure and Evidence Act to keep them locked up for another 7 days.

The embarrassing incident will do little to assure people who expressed misgivings about Makone landing the job as co-Home Affairs Minister. Much has been made of her close friendship to Jocelyn Chiwenga, the wife of army general Constantine Chiwenga. In 2007 Makone told the Zimbabwe Independent newspaper that Jocelyn was her ‘long-standing friend’. Many will remember that Chiwenga’s husband, apart from being a member of the murderous Joint Operations Command, vowed never to salute Morgan Tsvangirai if he ever won presidential elections.

Meanwhile political commentators have said the incident involving Minister Mutasa’s son points to heavy factional fighting within ZANU PF’s. Themba Mliswa, one of those arrested with Martin this week, has accused police commissioner Augustine Chihuri of being the most corrupt person in the country. Mliswa is a nephew to Mutasa and the fissure lines are there for all to see. It’s believed different factions control different arms of state security like the CIO, police, army and prisons. Theresa Makone involving herself in these factional fights does not send a good message on behalf of the MDC-T.

Efforts to get comment from Makone were in vain as Newsreel was told cabinet ministers from the MDC-T were in South Africa, for a workshop.


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SA farmer arrested & evicted from Chipinge farm

2010 07 02 -

http://www.swradioafrica.com/news020710/safarmer020710.htm

SW Radio Africa news - The Independent Voice of Zimbabwe

By Alex Bell

02 July 2010

Yet another South African farmer in Zimbabwe, meant to be protected by a bilateral investment protection agreement, has been evicted from his farm, following his unlawful arrest and detention on Thursday.

Mike Odendaal has faced worsening intimidation on his Chipinge property by land invaders, who last month took over his Wolwedraai farm and barred him from entering the property. His home has been vandalised, his property has been looted and his workers have all been forced to flee. Odendaal was eventually forced to seek the intervention of the courts and was last week granted a High Court order giving him the right to remain on the farm.

Commercial Farmers Union (CFU) Vice President, Charles Taffs, told SW Radio Africa on Friday that Odendaal was only allowed to return to the property on Wednesday to collect some personal belongings, mainly furniture. But he was promptly arrested the next day on allegations of occupying the farm “illegally” despite the court order, which also ordered the land invaders to leave. Odendaal was eventually released without charge after the intervention of South African Embassy officials, but remains barred from entering the farm.

At least 18 farmers, all with court protection, have been targeted by land invaders in recent weeks, with the CFU saying ZANU PF’s Didymus Mutasa is directly responsible for the intensified onslaught. Mutasa last month ordered a group of villagers in Chipinge, who are illegally occupying a coffee plantation, to ignore a court ruling ordering them to vacate the land. The Chipinge Magistrates Court had ordered that the 300 who had moved on to the property should vacate the estate because it was not gazetted for resettlement under Robert Mugabe’s land ‘reform’ programme. But Mutasa ordered the villagers to disregard this legal ruling, and in the weeks that followed, other court orders were also snubbed by land invaders.

“The situation has become almost laughable,” Taffs said. “The police are compromised, the courts are compromised. It’s out of control and we’re all at the mercy of a handful of politicians who are taking what they want.”

Odendaal is also one of a number of South African farmers in Zimbabwe who have been caught up in the wave of farm attacks by land invaders in recent weeks, despite an agreement between the two countries that is meant to protect South African owned land. The Bilateral Investment Protection and Promotion Agreement (BIPPA) was signed by both countries last year, but has only recently been ratified. But legally the BIPPA will only come into force 30 days after both countries have notified each other that they have fulfilled their “respective constitutional requirements for entry into force.” The exchange of notifications has not yet taken place, so the BIPPA is not yet in force.

South African civil rights imitative AfriForum has threatened legal action against its government for refusing to aid its citizens in Zimbabwe. The group’s legal team had last month written a letter to the South African Department of Trade and Industry demanding intervention on behalf of South African farmers. That letter was ignored.

AfriForum’s CEO Kallie Kriel told SW Radio Africa on Friday that the government’s refusal to help the farmers is a “disgrace.” He explained that court papers will be ready next week, which will ask the court to force the government to honour its responsibility to protect its citizens in Zimbabwe.

“The government’s only reaction has been to invite Robert Mugabe to watch the FIFA World Cup,” Kriel said. “We could have expected some stronger action from the government towards the man who is responsible for the violations facing our citizens.”

The ongoing farm attacks and the government’s refusal to honour various BIPPAs with different countries, means Zimbabwe remains devoid of meaningful investment, and even critical aid is now under threat. Germany’s government said on Friday that it will cut off aid to Zimbabwe unless land invaders are removed from a farm owned by a German national. Germany said, in a protest note to the Zimbabwe foreign ministry, that the occupation of the property owned by German investor Heinrich von Pezold, violates an investment agreement between the two countries. The note said Germany “will not be in a position to support a government which tolerates the blunt theft” of the land where houses, equipment and US$ 120,000 worth of corn, the staple food, had been looted.

The note issued by the German Embassy explained that an armed mob stormed the estate last month and held two farm managers hostage in their homes. Police arrived later but “did not endeavour to end the hostage taking. Property rights should be dealt with in court and not by applying raw violence,” it said. The German government called on the authorities to end the occupation of the property, and said that the situation had created large financial losses for von Pezold, the largest German investor in Zimbabwe.


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Germany threatens to cut off aid to Zimbabwe over attempts to seize German-owned farm

2010 07 02 -

http://blog.taragana.com/business/2010/07/02/germany-threatens-to-cut-off-aid-to-zimbabwe-over-attempts-to-seize-german-owned-farm-75866/

By Angus Shaw, AP

July 2nd, 2010

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Protests at seizure of German-owned Zimbabwe farm

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HARARE, Zimbabwe - Germany’s government said Friday it will cut off aid to Zimbabwe unless illegal and violent occupiers are removed from a farm owned by a German national.

In a Friday protest note to the Zimbabwe foreign ministry, Germany noted the occupation of the eastern Zimbabwe property owned by German investor Heinrich von Pezold violates a decade-old investment agreement between the two countries.

Germany said the farm seizure and looting on the property could imperil aid. Last year, Germany gave $ 50 million to independent aid groups in the southern African country.

The note said Germany “will not be in a position to support a government which tolerates the blunt theft” of the land where houses, equipment and $ 120,000 worth of corn, the staple food, had been looted.

An armed and alcohol-drinking mob stormed the estate June 18 and held two farm managers hostage in their homes, the note issued by the German Embassy said.

Police arrived later but “did not endeavor to end the hostage taking. Property rights should be dealt with in court and not by applying raw violence,” it said.

The German government called on authorities to end the occupation, and noted that the situation had created large financial losses in food crops, timber and tea and coffee operations for von Pezold, the largest German investor in Zimbabwe.

Ripened coffee worth $ 500,000 was rotting on the bushes, the note said.

Germany’s government also said the occupation violated international law and demonstrated a lack of commitment from senior Zimbabwean officials to honor investment agreements.

In Berlin, the German foreign ministry said in a statement Friday the European nation ceased giving direct aid to Zimbabwe’s government in 2002 but continued to provide humanitarian aid through nongovernment and civil society organizations.

Humanitarian charities in Zimbabwe say their foreign aid goes toward food supplies to the needy and improving health, education and other government services that collapsed in the country’s economic meltdown in years of political and economic turmoil.

Farmers’ organizations also protested the arrest Thursday of South African national Mike Odendaal for allegedly not vacating his farm in southeastern Zimbabwe under an eviction notice.

Odendaal was released by police and was leaving his land at Chipinge, 400 kilometers (250 miles) southeast of Harare, on Friday, headed for South Africa.

On June 26, he had won a High Court ruling that struck down the eviction, allowed him to stay on the farm and ordered authorities to remove illegal occupiers.

Deon Theron, head of the Commercial Farmers Union in Zimbabwe, said Odendaal had “had enough” after months of threats and legal wrangling.

“This again shows a total disrespect for the law,” Theron told The Associated Press.

The South African support group AfriForum said South African officials in Zimbabwe and in South Africa ignored pleas from Odendaal and other South Africans forced from land protected by bilateral trade and investment deals.

“It leaves a bitter taste in the mouth when one sees that the South African government turns its back on its own citizens who are subject to human rights violations in Zimbabwe,” the group said in a statement.

Often violent land seizures began in 2000, disrupting the agriculture-based economy. Some 300 white farmers remain on their land and more than half of them are facing eviction orders.

About 4,000 have been forced from their farms since 2000 under a program President Robert Mugabe insisted was to correct colonial era imbalances in land ownership. Many prime farms were allocated to Mugabe cronies and still lie idle.


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Robert Mugabe's Justice detained in Germany

2010 07 02 -

http://www.thezimbabwemail.com/zimbabwe/5541.html

02 July, 2010 08:48:00

By Tichaona Sibanda

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Rogue Justice Minister Patrick Chinamasa was part of a three-member ministerial delegation that flew to Brussels via Germany.

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Justice and Legal Affairs Minister Patrick Chinamasa was detained for almost three hours at Germany’s Munich airport on Thursday, when he was on his way to attend the European Union-Zimbabwe talks in Brussels, Belgium.

Chinamasa was part of a three-member ministerial delegation that flew to Brussels via Germany. The other two are head of delegation Energy Minister, Elton Mangoma and International Cooperation Minister, Priscilla Mishairabwi-Mushonga.

The duo had to delay their departure to Brussels waiting for Chinamasa to be cleared by Germany authorities to proceed to Belgium. A source in Brussels told SW Radio Africa that immigration officials in Munich were not expecting Chinamasa to pass through the city, following a glitch with the route their plane took.

Initially the three ministers were expected to change planes in Frankfurt after flying from Johannesburg. Authorities in Frankfurt knew of Chinamasa’s arrival and he had already been cleared to proceed to Brussels. The Justice Minister is on a travel ban of EU countries and needed a special dispensation from the EU to travel to Brussels.

Zimbabwe and the EU began talks on Friday to try to revive relations, strained for the past decade over Robert Mugabe’s controversial rule and blotted human rights record.

The talks were initially planned for April but were cancelled because the delegation could not fly out of Harare because of the Icelandic volcanic eruption that spewed ash across European skies, forcing cancellation of flights.

Relations between Brussels and Harare took a hit following the holding of the violence-marred presidential poll, ‘won’ by Mugabe in 2002. The EU and its Western allies condemned the election as a fraud and imposed visa and financial sanctions against Mugabe and his top allies in ZANU PF and in the military.

ZANU PF hope to use the talks with the EU to push for lifting of these targeted sanctions on the ruling elite, but analysts do not see Brussels scrapping these punitive measures, until calls for more political and democratic reforms in Zimbabwe are heeded.

The EU has consistently said that it was not appropriate yet for sanctions to be removed, saying the pace of reforms was too slow. Analysts told us the Zimbabwe delegation will find it hard to push for the removal of sanctions when Mugabe and ZANU PF were hindering progress by failing to implement issues already agreed upon in the Global Political Agreement.

Mugabe has complicated the situation by persistently dragging his heels on issues already resolved. When inter-party negotiators to the GPA concluded their talks on April 3, they submitted a detailed document titled ‘implementation matrix’ to their principals.

A source told us the document outlines issues which negotiators agreed upon and recommends how the issues should be implemented.

Negotiators in the talks included Chinamasa and Nicholas Goche for ZANU PF, Tendai Biti and Mangoma for the MDC-T, and Welshman Ncube and Misihairabwi-Mushonga for the MDC-M.

It is believed negotiators from the three parties have also raised concerns at the slow pace to implement issues they agreed upon. They insist that had the principals acted, the process would have significantly moved forward and enhanced chances of the EU looking positively at the request by ZANU PF to lift targeted sanctions.

Human rights lawyer Dewa Mavhinga urged the unity government to commit to human rights reforms saying the power-sharing pact provides a framework for change, but commitment to its implementation is lacking.

‘The issue of sanctions is more of a rhetorical exercise rather than something of substance. The failure to introduce reforms of the police, army and security forces, or address impunity are real obstacles that need to be addressed urgently,’ Mavhinga said.

He said the government must give as much attention to securing human rights reforms as they are to seeking the removal of targeted sanctions


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EU demands 'concrete progress' on Zimbabwe rights

2010 07 02 -

http://www.google.com/hostednews/afp/article/ALeqM5jGYHIzMV5PtfQKCfB-14Pegdtm4A

(AFP)

BRUSSELS

The European Union called on Zimbabwe on Friday to make "concrete progress" in meeting long-delayed political and human rights reforms after holding talks with Zimbabwean ministers.

EU foreign affairs chief Catherine Ashton and Development Commissioner Andris Pielbags met with ministers representing three political parties from Harare's power-sharing government.

"The EU appreciates some progress made implementing the Global Political Agreement in Zimbabwe," Ashton said in a statement, referring to the February 2009 power-sharing deal between President Robert Mugabe and his former rival Morgan Tsvangirai.

Ashton said Brussels "remains ready to continue the dialogue and to respond flexibly and positively to any clear signals of further concrete progress."

Relations between Zimbabwe and the European Union were strained 10 years ago by elections marred by violence and widespread allegations of human rights abuses by Mugabe's government.

In February, the EU renewed sanctions against Mugabe and his inner circle for another year, citing a lack of progress in implementing political and human rights reforms.

Despite the sanctions, the 27-nation bloc has provided 180 million euros (226 million dollars) to Zimbabwe for health, education, food security and governance, said a statement from Brussels.

The EU will release another 20 million euros in aid in the coming days, a commission official said.

The delegation from Harare included Energy Minister Elton Mangoma, Justice Minister Patrick Chinamasa and International Cooperation Minister Priscilla Misihairambwi-Mushonga.

The two sides held "open and constructive discussions with the ultimate objective of progressing towards normalising relations between the European Union and Zimbabwe," the EU said in a statement.

"It was also agreed to intensify the dialogue in Harare," it said.

Copyright © 2010 AFP. All rights reserved.


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Obert Mpofu accused of lying

2010 07 02 -

The Financial Gazette

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http://www.financialgazette.co.zw/top-stories/4668-obert-mpofu-accused-of-lying.html

Friday, 02 July 2010 14:52

Clemence Manyukwe

Political Editor

DIAMONDS from Chiadzwa fields remain banned as it emerged that Mines and Mining Development Minister, Obert Mpofu, misrepresented facts when he told the nation last week that the Kimberley Process (KP) had given Zimbabwe the green light to export its black-listed gemstones at its meeting in Israel. Following the Israel gathering, Mpofu said the meeting ended with a nod for Zimbabwe to sell the diamonds from the disputed fields, resulting in Cabinet on Tuesday giving its own approval for export.

The KP has since said there is no resolution for the resumption of exports, adding that a mini summit of the major diamond stakeholders is on the cards to deal with the matter once again after the Tel Aviv indaba ended in a stalemate. Marange diamonds have assumed a bad reputation after reports of the murder, maiming and rape of civilians in the area some of whom were involved in illegal panning activities, smuggling and more recently illegal exports that have not benefited the Treasury.

At the back of other countries such as Sierra Leone that plunged into civil war as a result of greedy politicians fighting to gain control of the mineral wealth, there are also fears that pickings from the fields may fuel conflict between ZANU-PF and the Movement for Democratic Change formations as the country looks set for another general election next year.

A fall-out between powerful ZANU-PF factions has also been cited when President Robert Mugabe, in power since independence in 1980, bows out of the party leadership.

The revelations that a ban is still in force come at a time when the United States is ratcheting up pressure on the government by warning that it strongly opposes any diamond exports before the KP reaches consensus on the issue.

Last month the KP gave a notice to all its members to report any shipment of Marange diamonds that might come to their attention and be on the look-out for stones from the same area that maybe laundered through the use of false documentation.

Zimbabwe has a stockpile of over four million carats of diamonds worth nearly US$ 1,7 billion from the Chiadzwa fields, with potential revenue of nearly US$ 2 million per month.

As the saga drags on, representatives of two watchdogs that have been campaigning for the retention of a ban on the gems, have accused Mpofu of lying that they had attempted to bribe him by demanding part of the proceeds from Chiadzwa diamond exports in exchange for support at the Israeli summit.

The two organisations - Partnership Africa Canada (PAC) and Human Rights Watch said the minister, whom PAC questioned his accumulation of wealth last month, which the minister maintains is not ill-gotten, was in a bid to distract attention from alleged organised smuggling and human rights violations at the disputed fields.

However, it was the KP that exposed a major difference with Mpofu on what really transpired at the meeting.

“The centre of attention, however, was the KP minimum standards implementation at the Marange diamond fields in Zimbabwe. The meeting convened in light of the second report of the KP monitor to Zimbabwe. In question was the continued implementation of the Joint Work Plan (JWP), agreed upon at the plenary meeting in Swakopmund, Namibia, in November 2009 . . . The Intercessional could not reach consensus regarding the implementation of the JWP and the work carried out by the KP monitor to Marange. As such, the meeting ended in an impasse,” said the KP.

The organisation added that KP chair, Boaz Hirsch, declared an impasse after a night-long discussion that ended in the morning the following day, resulting in him calling for another meeting to attempt to resolve the differences.

“This situation is unprecedented in the Kimberley Process me-eting, but all parties are committed to further engagement. The KP is based on a partnership between governments, the diamond industry and the civil society.

“I am committed to that end and I have asked Mr Izhakoff (World Diamond Council chair) to jointly convene within the WDC Annual Meeting coming July 14th-15th, in St Petersburg, a mini-summit of the KP major stakeholders.

“In the meantime deliberations will continue in order to find a consensus-based resolution,” the KP quoted its chair as saying.


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Fraud allegations taint Brazil visit

2010 07 02 -

The Herald

2010 07 02

 

http://www.herald.co.zw/inside.aspx?sectid=20751&cat=8

 

EVER since world football number one team Brazil came to Zimbabwe, there have been accusations of fraud, illegal dealings and embezzlement of funds involving up to a whooping US$ 60 billion.

The country is agog with gossip over deals that were cut by the organisers that include ZTA, ZIFA and Government. France, Spain and Argentina, who had undertaken to visit Zimbabwe at their point of exit from the World Cup finals in South Africa riding on the successful visit by Brazil, have since refused to come sighting the media reports on how the Brazilian visit has been marred by the alleged financial scandal.

Isdore Guvamombe (IG) talks to one of the alleged fraudsters, Zimbabwe Tourism Authority chief executive Karikoga Kaseke (KK) over the allegations and refusal by the other three teams to come to Zimbabwe.

IG: The country is awash with allegations that there was massive fraud of up to $ 60 billion by yourself and other senior official at ZTA, the Zimbabwe Football Association and in Government when the Samba Boys came to town (Q)

KK: That is an insult. It is sad and defamatory. That figure is atrocious and astronomic. It is mere hallucination! I have read that figure in the newspapers and in online publications and I have wondered where the stories are coming from.

When Brazil came, everything was done above board and we have records to prove that.

But before I answer to the allegations of fraud, the people of Zimbabwe need to know the real facts and events that led to Brazil coming.

If I stole that kind of money or if anyone of us stole that kind of money that person would be richer than Bill Gates! I must be in Forbes Magazine of the rich. Our national budget is less than US$ 2 billion dollars so that would be our national fiscus for 60 years.

That is an insult to us all. Is this how the media wants to pay us back for bringing Brazil (Q)

The truth of what happened is there and I am setting the record straight today.

IG: Is it true that you paid Brazil US$ 1,8 million in appearance fees (Q)

KK: Again that is not true. I will give you the real figure as I explain what happened. In fact, we paid Brazil US$ 750 000 but it started very high, in British pounds form.

IG: What happened (Q)

KK: We wanted to bring musician Akon as part of our celebrity host programme and three young men, Graylard Chabarika, Eusorf Mawoni and Cosmas Zvenhamo of AlexanderEthan Company, came to my office and told me that they knew someone working with the Brazilians, who could link us and make the team come to and camp in Harare, ahead of the World Cup finals.

So we abandoned Akon and said let us look at Brazil, as the number one world soccer celebrity. We had also targeted England, Spain and Argentina. It was all about rebranding Zimbabwe.

IG: How did these three come to talk about Brazil from nowhere (Q)

KK: They initially wanted to help us bring singer Akon for US$ 180 000 but we did not have that kind of money for Akon. They then told me that they knew someone called Paul Leisagang, who could make Brazil come to Zimbabwe.

Paul works for Kentaro, a company that has exclusive marketing rights for Brazil football team for the 2010. These three boys said they wanted US$ 100 000 success fee if they managed to help us bring the Brazilians to Zimbabwe and we agreed.

IG: Success fee (Q)

KK: Yes, that is what they called it but you can call it anything or commission, whatever.

IG: So you paid them when Brazil eventually came (Q)

KK: Yes, we paid them as per agreement and you can confirm with them. Chabarika’s number is 0912928139, Eusorf’s number is 0912936409 and Zvenhamo’s number is 0914312596. They will tell you what happened. I am clear about what transpired. But this is beside the point. I want to explain all the monies involved so that you see that neither myself nor Minister Mzembi and Rushwaya stole anything.

IG: Explain.

KK: The three men I mentioned before, then phoned me late one night in November last year and told me that Paul wanted to talk to me and that he wanted them to fly to South Africa. I made arrangements with my own money to have these guys fly to South Africa to see Paul. While there, Paul talked to me on the phone and told me that I was supposed to present Zimbabwe’s bid within 48 hours.

I had to pay for my travel to South Africa. What pains me is that I used my own money because I did not have Cabinet authority. I never recovered the money. I repeat, I used my own money. While in South Africa, Paul made me phone the Brazilian officials and talk to them over the phone from America for an hour and once again I used my money. It is at that stage that they agreed to listen to my proposal. They never believed we had enough security neither did they believe we have a good hotel to host their team.

IG: What was the proposal (Q)

KK: That we host Brazil for a two-week training camp and that we have Rainbow Towers and that they play our national team and two other teams of Brazil’s choice. They said they wanted 2,5 million pounds.

IG: Pounds or US dollars (Q)

KK: Pounds. That is when we invited Paul to Zimbabwe to negotiate for the package. At this point, we roped in the Cabinet Committee on 2010. At the meeting there were mixed feelings about the money involved.

Minister Mzembi said the money required was too much and we started further negations. Paul then told us that the match would be self-funding because of TV rights and gate takings. We said we did not have the kind of money still because our country was poor. The figure then changed to US$ 2 million and then to US$ 1,8. It was now US dollars. We met in January three times about these figures. The number of matches then also changed to one and the figure changed to US$ 1,3 million.

IG: When did ZIFA come in (Q)

KK: We brought in Zifa CEO Rushwaya at this stage and it is sad that after the good job she did in negotiating downwards, she is rubbished and called a thief. It is Rushwaya who showed the Kentaro team that Zimbabwe had no money.

Qatar had a US$ 5,5 bid on the table for the Samba boys but were sold out by their climate. Tanzania and Malawi had their lucrative bids. But Rushwaya came with her usual attitude that if the Brazilians do not want to go down to US$ 750 000 they could as well go to another country. She was strong and resolute. The negotiating team then agreed on $ 750 000 but removed television rights. She negotiated in two days. This is when we decided that Rushwaya signs the agreement on our behalf because we thought it the right thing. We still think it was right.

IG: Who paid the US$ 750 000 (Q)

KK: It was tough. We had been given a close deadline and we did not have the money. I went with Minister Mzembi to CBZ and they opened a special account for us. CBZ said they would take all the gate takings if they paid for us and we agreed. So the gates were manned by CBZ not ZTA, not ZIFA or anyone. CBZ paid for the plane that brought the Brazilians US$ 90 000. The Brazilians refused to use Air Zimbabwe, they said they did not want a Boeing 737 200 but preferred a new model. They hired a South African plane.

IG: Who else contributed (Q)

KK: NetOne paid US$ 20 000 to the CBZ account. Delta paid US$ 50 000 into the ZTA account for entertainment costs. We used this to pay the musicians who played at the Brazil game and paid for the PA system. Zimplats paid US$ 128 000 into the special account. The gate takings raised US$ 645 000 after removing charges like cashiers. We had to pay US$ 10 000 to public works to clean the stadium after the match. The stadium was donated for free by the Government. So the fans paid US$ 645 000 as gate takings. The fans paid for the game. ZTA had to pay the remaining US$ 58 000 to CBZ to make them retain their US$ 750 000. Zimbabwe’s soccer fans paid for Brazil. The fans literary brought Brazil here! The total corporate sponsorship was a mere US$ 198 00.0. If it were not for Brazil, we would have made profit. We wanted to charge the rest of the stadium US$ 15 but they said your people are poor. Make them pay US$ 10.

IG: What did Benjani Mwaruwari pay in the upkeep of our national team (Q)

KK: Nothing! He was actually paid an appearance fee like other players. People are telling lies. Benjani paid virtually nothing!

IG: There is also another allegation that you personally stole US$ 500 000 from people that registered their houses in anticipation for an influx of World Cup tourists (Q)

KK: That is silly. Here is a list of the 309 people who registered their houses for 2010. They each paid US$ 10 for registration, which is less than the cost of inspecting the houses. The receipts are there. They are free for inspection. Where did the US$ 500 000 figure come from (Q)

Go and ask those who paid for their houses. ZTA charged them a mere US$ 10 registration. You must know that ZTA is an organisation that has a proper accounting system.

I am former chief executive of another parastatal, I am former Permanent Secretary of a Government Ministry and you think I cannot put in place accountability.

ZTA has a board of governors and you cannot expect it to be run like an informal organisation. How can US$ 500 000 go missing from ZTA unaccounted for (Q)

isadore.guvamombe@zimpapers.co.zw


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Indigenisation - Defiant firms face prosecution

2010 07 02 -

The Herald

2010 07 02

 

http://www.herald.co.zw/inside.aspx?sectid=20756&cat=1

 

Herald Reporter

Companies and businesspersons that failed to comply with Indigenisation and Economic Empowerment Regulations decreeing that they submit proposals on how they intend to comply with the law face prosecution.

Those found in contravention with the law will either face jail time, fines or both.

In an interview yesterday, the legal advisor in the Ministry of Youth, Indigenisation and Economic Empowerment, Mrs Theresa Chifamba, said Government will ensure everyone gets the relevant forms and submit them or be taken to court.

The deadline was June 30, 2010 after it was twice extended. In a separate interview, Indigenisation Minister Saviour Kasukuwere said the law must be complied with.

He said over 600 companies, including big manufacturing and mining houses, had submitted their proposals.

"The law is very clear and those who did not comply would be prosecuted because they must be aware that they are in breach of the law," he said

The minister urged all companies that had not yet communicated with his offices to do so because the deadline would not be further extended. Mrs Chifamba also added that some companies had for individually asked for deadline extensions and these had been granted.


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Chombo saves mayor’s job

2010 07 02 -

The Herald

2010 07 02

 

http://www.herald.co.zw/inside.aspx?sectid=20766&cat=1

 

By Takunda Maodza

MDC-T cannot fire Victoria Falls Mayor Nkosilathi Jiyane because he is performing his duties satisfactorily, Local Government, Rural and Urban Development Minister Ignatius Chombo has said.

In an interview yesterday, Minister Chombo warned the Morgan Tsvangirai-led formation to desist from bringing internal party squabbles into local governance issues.

MDC-T has been trying to push out Mayor Jiyane and replace him with a former commercial farmer called Mr Larry Cummings, who is understood to be a major party financier.

However, the law does not allow a party to boot out a mayor.

Yesterday, Minister Chombo said, "Councillor Jiyane cannot be punished for performing his duties well. As the ministry, we want a complete separation of party political activities and governmental functions.

"If MDC-T councillors disagree with the mayor, they cannot bring party fights in council chambers. The main function of a mayor and his councillors is to provide service delivery.

"Political arrangements are out of this. As far as governmental activities are concerned, Clr Jiyane has performed well."

Sections 54(1) and 54(2) of the Urban Councils Act states: "The President may require a mayor to vacate his office if he has been guilty of any conduct that renders him unsuitable as mayor, or is mentally or physically incapable of carrying out the functions of his office.

"The Minister may suspend a mayor whom he suspects on reasonable grounds of having been guilty of conduct referred to (above) or against whom criminal proceedings have been instituted for an offence in respect of which a sentence of imprisonment without option of a fine may be imposed."

The ministry has since written to the Victoria Falls town council directing that Mayor Jiyane remain in office.

Minister Chombo said, "We have instructed the Secretary for Local Government, Rural and Urban Development (Mr Killian Mpingo) to instruct the Victoria Falls town clerk and council that the functions of council should proceed unhindered.

"We heard that an instruction from somewhere was given that no full council should be held in Victoria Falls," Minister Chombo said.

He said only he, as the minister, and only on good grounds, could stop full council meetings.

"If MDC-T councillors in Victoria Falls are no longer interested in service delivery, they are free to resign. The secretary has instructed that Clr Jiyane stays and works normally.

"If he makes errors as mayor, due process will take its course. Kangaroo courts are not allowed. Councillors in Victoria Falls are warned to work in the interests of the people.

"If they fail to attend to their duties we will be glad to remove them from office and elections will be held," Minister Chombo said.

Councillors have accused the mayor of incompetence and have established a four-member team to probe him.

There are efforts in the MDC-T formation to dismiss him from office since Mayor Jiyane is one of the longest serving MDC-T councillors in Zimbabwe.

Last month, MDC-T councillors passed a vote of no confidence in him and his deputy, Cllr Patricia Mwale.

The probe team, which is led by Hwange East legislator, Mr Thuse Sansole, has submitted a report on its findings to MDC-T’s national secretary for local government Mr Sessel Zvidzai.

Mr Zvidzai is also Local Government, Rural and Urban Development Deputy Minister.

Investigations show MDC-T wants Mr Cummings to take over the mayorship.

Sources said Mayor Jiyane had refused to "compensate" Mr Cummings after he lost his safari business during the land reform programme by giving him a prime commercial stand in Victoria Falls.

MDC-T is also not happy that the mayor has attended State functions officiated by President Mugabe.


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NGOs’ violence claims dismissed

2010 07 02 -

The Herald

2010 07 02

 

http://www.herald.co.zw/inside.aspx?sectid=20765&cat=1

 

Herald Reporters

The Parliamentary Select Committee has dismissed reports by some non-governmental organisations that the constitutional outreach programme has been marred by violence and intimidation.

Some sections of the media have claimed that outreach monitors were assaulted in Mashonaland Central.

"The general atmosphere has been conducive and meetings have been held in an environment of peace. No incidences of violence have been recorded. We are seeing national healing in the process, with members of different political parties sitting together and speaking their minds out," said Copac co-chairperson Cde Munyaradzi Paul Mangwana (Zanu-PF) at a Press conference yesterday.

He also said there were no people called "outreach monitors" - a term some NGO workers have been using to describe themselves.

"The problem I have is identifying an outreach monitor. We did not accredit outreach monitors; they have no relationship with us."

MDC representative Mr Gaule added: "We do not have any monitors, why should it be monitored?"

Cde Mangwana castigated some NGOs’ attempts to derail the programme for their selfish reasons.

"The level of polarisation has led some people to form organisations that survive on lies. They will continue to perpetuate those lies. However, those who continue to perpetuate those lies will eat humble pie in the fullness of time," he said.

Mr Douglas Mwonzora (MDC-T), another co-chairperson, said they would soon start accreditation of genuine individuals and organisations to observe the outreach.

In a separate interview, Cde Mangwana yesterday said too few youths were participating in the constitution-making process.

"This is very disappointing as the constitution is really theirs. Strategies are being formulated to find out how the youths can be incorporated more in the process. Political parties have also been urged to engage their youth wings," he said.

Meanwhile, on Wednesday UNDP and Treasury released more money for the outreach.

The programme had been dogged by financial constraints, which resulted in outreach teams being evicted from hotels.

The money is for fuel, hired vehicles and accommodation. Copac had forwarded a US$ 2 million budget to the management committee for "unforeseen" expenses.

Yesterday, Copac national co-ordinator Mr Peter Kunjeku said: "UNDP on Wednesday released US$ 70 000 for fuel and US$ 970 000, which is a 50 percent down-payment for hired vehicles. They have also released quite a substantial amount for hotels where outreach teams will be staying. Treasury has released US$ 400 000 for our administrative purposes."

Despite a slow start, several well-attended meetings have been held in various provinces.

Midlands has held 52 meetings, Masvingo has had 30, while Mashonaland West and East have had 31 and 50 respectively.

The others are Mashonaland Central (51), Matabeleland North and South (35 and 36) and Manicaland (61).


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Diamonds run in Chiadzwa’s family

2010 07 02 -

The Herald

2010 07 02

 

http://www.herald.co.zw/inside.aspx?sectid=20767&cat=1

 

Crime Reporter

Jailed diamond dealer Newman Chiadzwa’s wife was last Thursday fined US$ 700 by a Mutare magistrate after she was found in possession of diamonds worth over US$ 18 million.

Palister Chiadzwa (38) was found guilty of breaching the Precious Stones Act following her arrest in 2006.

Her husband is serving a five-year jail term and was fined US$ 132 000 after he was convicted of illegally possessing 43 028 diamonds of varying sizes by a Mutare magistrate.

Last Thursday, Palister was fined US$ 700 or seven months in jail with hard labour.

On October 14, 2006 police detectives on patrol in Marange received information that Palister was illegally dealing in diamonds at Zengeni Business Centre.

They put her under surveillance for some time before approaching Palister, who was sitting in her green Toyota Prado.

A search was conducted and the detectives discovered 2 462 diamonds worth US$ 18 658 280 in her handbag.

She was arrested and the diamonds were forfeited to the State.

CID Border Control and Minerals Unit spokesperson Detective Assistant Inspector Godfrey Mubaiwa yesterday confirmed the case and sentence.

Palister’s husband, Newman, was thrown behind bars in March and is appealing against both his conviction and sentence.

In June, High Court judge Justice Yunus Omerjee threw out Newman’s application for bail pending review.

Newman, who once laid claim to the title "Chief Chiadzwa", has 12 previous criminal convictions, some of them dating back to 1971.

The crimes ranged from hawking to illegal possession of gold and diamonds.

In 2008, he was convicted of illegally possessing diamonds while he was out on bail after being charged with a similar crime earlier.

Newman rose to national notoriety in 2009 when he reportedly lied to a visiting Kimberley Process Certification Scheme team that there were mass graves in Chiadzwa.

He reportedly made the claims in the guise of "Chief Chiadzwa", a non-existent title as the area is led by a headman who falls under Chief Marange’s jurisdiction.

Newman, however, recanted that claim and apologised a few months before he was jailed for his crimes.


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Feathers fly over tipper tender

2010 07 02 -

The Herald

2010 07 02

 

http://www.herald.co.zw/inside.aspx?sectid=20769&cat=1

 

Municipal Reporter

Harare City councillors were on Tuesday night at each other’s throats over allegations of corruption and bias in awarding a tender for the supply of two tipper trucks.

Councillors alleged that Paza Buster, the company awarded the tender, belonged to an unnamed senior Zanu-PF official and should therefore not get the tender.

This prompted Mayor Muchadeyi Masunda to call a vote to decide the matter.

Twenty-five councillors voted to award the contract to Total Motor Mart while seven supported Paza Buster.

The procurement board had recommended Paza Buster based on its price of US$ 349 600 for the two Isuzu tipper trucks and a proven track record in timeous delivery of orders.

The company has supplied 20 refuse compactors and six tipper trucks for the waste management department. It services the vehicles free of charge.

But the majority felt Total Motor Mart with its price of US$ 377 793,88 was the best.

The company supplies Mann vehicles. The two tipper trucks are required by the engineering department for road repairs.

The councillors did not name their colleagues who they accused of being induced to award the tender to Paza Buster.

Clr Girisoti Mandere questioned why Paza Buster was getting the contract soon after it won another one to supply refuse collection trucks.

Clr Julius Musevenzi added his voice: "We are now smelling a rat. On what basis did the committee select Paza Buster?"

Clr Warship Dumba supported his colleagues saying Paza Buster was causing them headaches.

"Something is happening here," he said. Clr Tungamirai Madzokere said the directors of Paza Buster should be named.

His comments followed the councillors’ caucus meeting agreement that seemed to infer that the company was linked to Zanu-PF officials.

Mr Masunda at first had ruled that the matter be referred back to the procurement board but the chairman of the board, Clr Masiye Kapare, refused and said the house should decide.

A vote was called to decide the matter with 13 councillors in favour of referring the matter to the committee while 20 said the full council should make a decision.

The last vote was for which company should get the tender.

Yesterday the managing director of Paza Buster, Mr Paul Chenjerai, said the company was a family business owned by him and his two brothers, Andrew and Ronald.

"We also work with Mr Isaac Jiri as our manager. We own the company. This company has been given to a lot of people. But to put the record straight, I am the managing director, Andrew is the financial director while Ronald does the marketing," he said.

Mr Chenjerai said it would be in the interest of everyone if the council could verify ownership of the company before tarnishing names of individuals.

After the full council meeting officials were adamant that the councillors were indeed benefiting from the tenders.

"There is no more parking space here at Town House. They all have vehicles," said an official.


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Ministers, police clash over Mutasa’s son

2010 07 02 -

The Herald

2010 07 02

 

http://www.herald.co.zw/inside.aspx?sectid=20772&cat=1

 

By Innocent Ruwende and Freeman Razemba

PRESIDENTIAL Affairs Minister Didymus Mutasa and Home Affairs co-Minister Theresa Makone on Wednesday went to Mbare, Matapi and Stodart police stations allegedly demanding the release of Mutasa’s son.

Martin Mutasa (47) was arrested on Monday along with businessman Temba Mliswa (38) and George Marere (36) for allegedly seizing shareholding worth US$ 1 million in a company.

Mliswa is a nephew to Minister Mutasa.

Three other people - including a director of the company and his wife - have since been arrested on the same charges.

Martin Mutasa, Mliswa and Marere appeared before a Harare magistrate yesterday.

However, according to police, on Wednesday Ministers Mutasa and Makone tried to "intimidate" officers into releasing Martin Mutasa.

Chief police spokesperson Senior Assistant Commissioner Wayne Bvudzijena yesterday said: "The Zimbabwe Republic Police views seriously the behaviour of the two ministers which sought to interfere with police work, particularly as the ministers sought to protect accused person facing charges of wantonly seizing property outside the law and threatening others."

Snr Asst Comm Bvudzijena said the behaviour contravened Section 184 (1) of the Criminal Law (Codification and Reform) Act by defeating or obstructing the course of justice.

The law states that any person who "by an act of omission, causes judicial proceedings to be defeated or obstructed, intending to defeat or obstruct the proceedings or realising that there is a real risk or possibility that the proceedings may be defeated or obstructed; or;

"Knowing that a police officer is investigating the commission of a crime or realising that there is a real risk or possibility that a police officer may be investigating the commission or suspected commission of a crime, and who, by any act or omission, causes such investigation to be defeated or obstructed, intending to defeat or obstruct the investigation or realising that there is real risk or possibility that the investigation maybe defeated or obstructed;

"Hinders or disturbs a police officer in the execution of his or her duty, knowing that the police officer is a police officer executing his or her duty or realising that there is a real risk or possibility that the police officer may be a police officer executing his or her duty; shall be guilty of defeating or obstructing the course of justice."

Snr Asst Comm Bvudzijena would not disclose what action they were taking against the ministers.

Martin Mutasa, Mliswa and Marere yesterday appeared before Harare magistrate Mr Don Ndirowei to answer to fraud charges.

They were granted US$ 400 bail each, but will remain in custody after the State invoked Section 121 of the Criminal Procedure and Evidence Act.

The section empowers the State to keep suspects in remand prison for seven days while it considers appealing against the granting of bail.

The trio is represented by lawyer Mr Charles Chinyama of Chinyama and Partners while Mrs Phyllis Zvenyika prosecuted.

Minister Mutasa made an appearance at the courts in the company of his lawyer, Mr Gerald Mlotshwa.

Three others - Hammarskjold Banda, his wife Brendaly and Alfred Mwatiwamba - last Friday appeared in court on the same charges and are out of custody on US$ 100 bail.

Mliswa, who is the vice president of the Affirmative Action Group, is accused of misrepresenting to businessman Paul Westwood that President Mugabe and Youth, Indigenisation and Empowerment Minister Saviour Kasukuwere had given them the go-ahead to take over 50 percent of his company, Noshio Investments Limited.

Westwood held 50 percent of the company that is valued at US$ 2,1 million while one of the accused, Banda, owned the other half.

The State alleges that in October 2009, Westwood and Banda had a dispute over alleged misappropriation of funds by Banda’s wife, Brendaly, who was the company’s finance and human resources manager.

She had reportedly withdrawn US$ 25 000 without Westwood’s knowledge.

The company resolved to suspend Brendaly in October, a decision that did not go down well with Banda.

It is alleged the husband and wife connived with Martin Mutasa, Mliswa, Marere and Mwatiwamba to seize control of the company.

The State says in August 2009, Banda borrowed US$ 100 000 from Mliswa at 5 percent interest per month.

He, however, allegedly failed to repay the loan at the agreed rate.

Mliswa is said to have demanded that he surrender his Noshio shares to him to offset the debt.

On December 18, Mliswa, Martin Mutasa, Mwatiwamba, Brendaly and a Nigel Murambiwa allegedly went to Noshio Investments offices claiming Minister Kasukuwere had allowed them to take over the company.

Mliswa is alleged to have claimed President Mugabe was aware of the takeover and it was in line with Government policy.

The five allegedly told Westwood they had taken 50 percent of the company’s shares and threatened him with death if he resisted.

The State says Mliswa called a meeting with Noshio workers during which he informed them he had assumed control and warned them against taking orders from Westwood.

It is alleged that Mliswa further threatened Westwood, who stopped visiting the company premises after bouncers were hired to man the entrance.

As a result, the State alleges, Westwood lost shareholding worth US$ 1 050 000.


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Zim has capacity to increase coffee production - Marchal - (European Union, Ambassador Xavier Marchal)

2010 07 02 -

The Herald

2010 07 02

 

http://www.herald.co.zw/inside.aspx?sectid=20729&cat=8

 

Business Reporter

Zimbabwe has the capacity to increase coffee production if the industry stabilises and become self-sustaining, the outgoing Head of Delegation of the European Union, Ambassador Xavier Marchal has said.

Ambassador Marchal said there are opportunities for growth, which should attract and promote new entrants into the sector.

He said increased production would create employment and improve standards of living.

"Zimbabwean commercial farmers are certainly among the best in the world, should coffee be "teamed up" with other very valuable crops such as macadamia nuts or avocados.

"Today the coffee sector is moribund, with 300 tonnes produced in 2010, which is not good for thousands of communal farmers who want to improve their livelihoods and income," said Mr Marchal.

He added that unless there is an immediate intervention with sustainable business plan, Zimbabwe would no longer be able to produce fine Arabica coffee.

The country’s coffee production dropped to its lowest levels registering 300 tonnes in 2010 as farmers shifted to less demanding crops such as maize.

Zimbabwe reached its peak in the 1990s after producing 15 000 tonnes of coffee. The country has a milling capacity of 50 000 tonnes of green coffee annually.

It takes about seven years for a coffee plant to start producing, which makes it less attractive for most farmers.

EU’s involvement in supporting small-holder coffee producers of the Honde Valley started in 1982 and the climax of the support has been the establishment of the coffee mill in Mutare designed for small holder farmers.


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Bindura Nickel set to resume operations

2010 07 02 -

The Herald

2010 07 02

 

http://www.herald.co.zw/inside.aspx?sectid=20731&cat=8

 

Business Reporter

PAN-AFRICAN resources company Mwana Africa says it will this year resume operations at Trojan Nickel Mine and the concentrator at Bindura Nickel Corporation.

Group chief executive Mr Ka-laa Mpinga said SRK Consulting is preparing a report on the restart plans and the group is evaluating strategic and financing options for the project.

"We have advanced plans for the resumption of operations at the Trojan Nickel Mine and concentrator, including proposed off-take terms," said Mr Mpinga.

The only integrated nickel mine, smelter and refinery complex in Southern Africa, BNC has the potential to become a processing centre for materials produced throughout the region.

"Our plans to restart mining at Trojan and the production and sale of 7 000 tonnes of nickel per year in concentrate are at an advanced stage," added Mwana chairperson, Mr Oliver Baring.

Mr Mpinga commented that the company remained confident that BNC would be brought back into successful production, and would return to being an important contributor to the group and to the country’s economy.

Turning to Freda Rebecca gold mine, the group said the mine returned to commercial production in October 2009, in time to benefit from a record high gold price and 8 550 ounces of gold were produced in the six months to March 31, 2010 and a further 3 447 ounces have been produced.

In March 2009, Mwana announced that it would undertake a two-phase refurbishment programme at the mine.

"We now look forward to a return to production in line with the planned 30 000 ounces a year of gold from phase one.

"In addition, Mwana would use the US$ 10 million facility approved by South Africa’s Industrial Development Corpora-tion to implement the second phase of the mine’s refurbishment programme, which was planned to increase output to about 50 000 ounces of gold a year."

Despite BNC remaining on care and maintenance throughout the year, and production from Freda Rebecca commencing only in the second half of the year, the group’s principal operations generated revenues of 18,8 million pounds.

At BNC, sales of in-process materials were concluded as part of the company’s strategy to realise cash from existing working capital positions while the care and maintenance programme continues.

The Freda Rebecca gold mine generated revenue of 6 million pounds.

Group loss for the year before tax was 14,4 million and net cash outflow during the year from the group was 3,7 million pounds.

Commenting on the new indigenisation regulations, Mwana Africa said in the past it had taken steps towards indigenous economic empowerment at its BNC and Freda Rebecca mine.

These include BNC’s listing on the Zimbabwe Stock Exchange and Mwana’s commitment to sell 15 percent stake in Freda Rebecca to a local partner.

The Government is seeking to make foreign companies with a market capitalisation of over US$ 500 000 to dispose of at least 51 percent of their shares to indigenous Zimbabweans.

Mr Mpinga said mining was unique in the scale of its need for capital investment, and its potential to contribute significantly to the country’s economic recovery.

"We are confident that, across the country, solutions will be found that balance both the need to attract investment to Zimba-bwe and the responsibility of the mining industry to support the economic development of the whole country," he said.

Mwana also operates in South Africa, Botswana, Ghana, Angola and the Democratic Republic of Congo.

The company’s placing of 88.3 million shares in March 2010 raised approximately 8,4 million pounds after expenses.

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