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- may peace, truth and justice prevail.

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FinGaz

      COSATU lobby Mugabe ouster

      Godfrey Marawanyika
      6/26/03 10:01:04 AM (GMT +2)

      President Thabo Mbeki's much criticised delicate foreign policy on
Zimbabwe goes under a litmus test with the powerful and militant Congress of
South African Trade Unions (Cosatu) positioning itself to aggressively push
the South African leader to force President Robert Mugabe, currently
balancing on a political knife-edge, from power and call for an interim
government as a precursor for the ushering in of new political dispensation.

      The move by the South African labour union, a key ally of the ruling
African National Union (ANC) during the liberation of the country, was
unanimously agreed on May 28 and 29, at a meeting convened in Johannesburg
to actively support calls by the Zimbabwe Congress of Trade Unions (ZCTU)
and other stakeholders, "for an interim government in Zimbabwe and the
drafting of a new constitution on the basis of which fresh elections should
be conducted"

      Before the ink is even dry on the paper on which its resolution is
written, Cosatu is already mobilising its Northern Province affiliates to
organise mass demonstrations around the Beitbridge area to highlight the
plight of the Zimbabwean people.

      The Northern Province lies just after the Limpopo River which borders
Zimbabwe and South Africa, its biggest trading partner. One Cosatu official
said the dates for the demonstrations were yet to be fixed as "we are
waiting for some issues to be addressed from there (Zimbabwe)" without
elaborating. The demonstrations are set to spill-over into Zimbabwe.

      According to confidential information obtained by this paper, Cosatu's
leadership resolved at their Johannesburg meeting that they would shortly be
sending a fact-finding mission into Zimbabwe comprising of all its
affiliates, before cracking its whip on Mbeki to deal with Zimbabwe's crisis
and force a re-run of Zimbabwe's presidential election. This follows their
meeting with the ZCTU in Johannesburg last month.

      "I can confirm that Cosatu met President Mbeki last month and they
talked about Zimbabwe, where the President explained his positions", said
the South African presidential spokesman Bheki Khumalo. He however professed
ignorance over the planned demonstrations scheduled for the Northern
Province.

      George Charamba, the permanent secretary in the Department of
Information and Publicity in the President's Office and his boss, Jonathan
Moyo were both said to be out of the office yesterday.

      Willard Chiwewe, responsible for Special Affairs in the President's
office said, " People protesting against their governments, I don't think
that is consistent with their Pan Africanist position. Instead Cosatu could
learn a lot from the solidarity that European Union or American labour
organisations have. They will be out of the way of the Pan Africanist view
which President Mbeki has been doing"

      Sources from Johannesburg indicated that Zimbabwe's issue, which had
been simmering under within the ANC's ruling block, could boil over,
exposing that the alliance has not been singing from the same song sheet
over efforts to curtail a long-standing crisis in Zimbabwe.

      President Mbeki has come in for a flak over his silent diplomacy at a
time there has been a chorus for a radical push to effect a regime change in
Zimbabwe.

      Calls for megaphone diplomacy and decisive action on Zimbabwe come at
a time when there is an ill-feeling within both the ruling Zanu PF and the
Movement for Democratic Change (MDC) over each party's sincerity in the
aborted talks to find a negotiated settlement to the country's still
unfolding crisis. The protagonists of the negotiated settlement felt that
the political impasse is a millstone around the country' neck.

      While it is widely believed that a negotiated settlement could avert
further trauma so far suffered by Zimbabweans in the country's increasingly
violent political divide, both the MDC and Zanu PF, led by what observers
feel are the country's biggest political egos, Morgan Tsvangirai and
President Mugabe respectively, have been playing hardball.

      President Mugabe under whose stewardship the economy has collapsed
into a recessionary heap has all along been exploiting the power of
incumbency, and always reminds his critics that his ruling Zanu PF fought
for the liberation struggle.

      The MDC however argues that although the war of liberation was
important, it is now of the past and will not be a rallying point for the
future. Given the sweeping nature of the economic melt-down, the MDC has
been tapping into a deep well of disenchantment of Zimbabweans frustrated
with social depravation.

      The decision by Cosatu, which was taken by its executive committee, is
expected to break the crucial alliance between Mbeki's government and
Cosatu. Cosatu's leadership is intent on taking Mbeki hostage over his quiet
diplomacy on Zimbabwe, which has been widely criticised as ineffective in
dealing with the country's political and economic crisis.

      "Cosatu will lobby the South African government to pressurise
President Mugabe..to accede to the demands by trade union movement for
democracy, restoration of rule of law and free political activity," the
Cosatu executive declared in minutes obtained by The Financial Gazette.

     The Cosatu executive said it had a "historical duty" to help find a
solution to Zimbabwe's problems and ensure democracy and free political
activity.

      Cosatu confirmed their position on the planned demonstrations on
Tuesday this week.

      "This will not in any way affect our relationship with the ANC at all.
I believe President Mbeki is arguing for the same political settlement in
Zimbabwe. So our stance will not affect our relationship with the government
since we are working for the same solutions", said Patrick Craven, a Cosatu
spokesman who could not however say when the planned demonstrations would
take place.

      "The resolution that was taken by Cosatu was a result of our meeting
with them last month. After the meeting that's when they came with that
position and I must say we are very much humbled by their response since we
come from the family of both regional and international labour unions", said
Wellington Chibhebhe, the seretary general of the ZCTU.

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FinGaz

      IMF injects US$135 mln for regional tourism

      Staff Reporter
      6/26/03 10:12:41 AM (GMT +2)

      ZIMBABWE, which was early this month suspended from the International
Monetary Fund (IMF), is expected to benefit from the fund’s US$315 million
injection into a regional tourism project, a South African tourism operator
said.

      The funding will help transform Zimbabwe’s tourism infrastructure, and
could be a major boost to the country’s tourism industry, which has
experienced a serious slump in international arrivals due to an unstable
economic and political environment.

      Kenneth Small told The Financial Gazette during the re-launch of the
Elephant Hills Intercontinental Hotel in Victoria Falls last week that the
southern African region would get US$250 million in resort projects in the
next five years.

      The funding will come from the World Bank and IMF and will help in
transforming resort areas.

      "The project will see one million jobs being created in the tourism
industry and this will go a long way towards promoting black empowerment
programmes," he said.

      Small said that US$115 million would be used for the establishment of
10 transfrontier parks in the next five years.

      Currently, there is the Kruger Transfrontier Park encompassing
Mozambique, Zimbabwe and South Africa.

      Mozambique has already received US$20 million from the joint IMF/World
Bank initiative.

      Zimsun Leisure chief executive officer, Shingi Munyeza, said the
project would see a major uplifting of the local tourism sector, which is
experiencing a slump because of political instability and the economic
crisis.

      The projects will also see an increase in tourist arrivals from two
million to 6.5 million a year and the introduction of 60 charter flights by
2010.

      Zimsun group chairman, Eben Makonese, said the government has also
been offering export incentives that will help in sustaining the project.
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FinGaz

      Natfoods destroys GMO maize

      Staff Reporter
      6/26/03 10:06:18 AM (GMT +2)

      THE government has directed National Foods Limited to destroy all the
genetically modified (GMO) maize at the firm’s plant in Bulawayo.

      Livestock producers say the grain which is to be destroyed could be
used as stock-feed to save cattle in a region where nearly 50 000 cattle
have perished in Matabeleland South alone due to the drought.

      The Financial Gazette is informed that since Monday, a total of about
3 000 tonnes of the GMO maize had by yesterday been dumped in several
disused mine shafts at Turk Mine. This has disappointed cattle farmers, many
of them peasants battling to source stock-feed.

      National Foods last year won a multi-million dollar World Food
Porgramme (WFP) contract to mill 13 000 tonnes of GMO maize meal to feed
hungry Zimbabweans.

      Obert Mpofu, the governor and resident minister of Matabeleland North,
confirmed in an interview that the government had directed that the GMO
maize be destroyed. Mpofu said the state felt the residue was not even fit
as stock feed.

      "It’s an agreement between us (government), and National Foods.

      "The GMO maize is being milled in a quarantined place as per the
agreement reached between us and the two parties in the deal. We will not
allow that stuff to be carelessly disposed off. GMO foods are not good for
us Africans," said Mpofu.

      President Robert Mugabe reluctantly allowed WFP and other relief
agencies to distribute GMO maize meal owing to serious food shortages caused
by poor harvests blamed on the drought and the chaotic land reform.

      About six million people in Zimbabwe are dependent on the
food-hand-outs mainly from WFP.

      Farmers that spoke to this newspaper queried the government’s decision
not to allow the farmers to acquire the destroyed GMO maize to feed cattle,
ostriches and other livestock.

      Ian Kind, the managing director of National Foods, could not
immediately comment yesterday as he was said to be attending several
meetings.

      Sources at National Foods told this newspaper that the maize was being
transported to the disused mine shafts at Turk Mine by 10 30-tonner trucks.

      "There is a local firm that won the contract to move and dispose the
stuff. The government does not want it to be fed to cattle or for it to leak
into fields," said a National Foods official.

      "The government allowed WFP to feed hungry villagers with GMO maize
meal, why not allow us to feed our dying cattle with the maize which is very
good stuff for the animals. If the people are eating GMO maize, why not the
cattle," a farmer from Turk Mine who witnessed the dumping of the GMO maize
told this newspaper.

      Mpofu expressed concern that farmers were now aware where the maize
was being dumped.

      "In fact we wanted it to be a secret. I am surprised that they have
discovered it. No-one except the authorities is supposed to know where the
stuff is being destroyed because we don’t want to contaminate our beef or
fields," said the governor.

      "People might abuse the stuff and then we are in trouble. We don’t
like these GMO foods and we are not alone in this in Africa," he said.

      The refusal by the government to allow farmers to use GMO maize as
stock feed comes at time when the price of stock feed has gone up by 40
percent.

      A 50-kilogrammes bag of cattle feed now costs $9 847 compared to $7
000 a bag two weeks ago.

      Zambia has refused relief agencies to ship in GMO maize.
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FinGaz

      Sharp interest rate cut on the cards


      6/26/03 10:06:56 AM (GMT +2)

      A DRASTIC interest rate cut that could see lending rates plunging to
around 30 percent is on cards, in what would mark a drastic shift in
monetary policy.

      Treasury sources said the central bank, which had been pushing for
interest rates reflective of the level of inflation, was under pressure to
reign in lending rates that are creeping towards 100 percent.

      The Reserve Bank of Zimbabwe (RBZ) is now mulling slashing the Repo
Rate, which is reflective of the cost of money accessed from the bank. At
the last tender, the rate was around 56 percent.

      A repo is conducted through the normal tender system, whereby
institutions offer to sell Treasury Bills (TBs) back to the RBZ on the basis
that they would repurchase them the following day.

      It is a way of getting overnight cover through the use of TB holdings
as opposed to merely borrowing.

      By lowering the rate, banks would gradually cascade their lending
rates downwards.

      "Much of the pressure is coming from politicians who are concerned
that resettled farmers could fail the nation if they don’t access cheap
funds.

      "You are aware, that most of the farmers are already failing to access
funds raised from agribonds and cheap loans provided to exporters and the
productive sectors," said a treasury source.

      The source said: "The current interest rate regime is unsustainable.
There is no economy that can take-off with interest rates as high as 100
percent."

      Last year, outgoing RBZ governor, Leonard Tsumba, said the bank would
pursue a dual interest rate policy.

      Under the new policy, low interest rates were applied on export and
productive sectors with non-essential or consumptive borrowing attracting
market determined rates.

      Tsumba was hoping that low interest rates would stimulate economic
growth, while market-determined rates would discourage speculative
borrowing.

      The economic meltdown has however, continued and so has consumptive
spending.

      In the absence of the economic recovery trust fund that should have
been established before March this year, activity in industry has remained
depressed.

      The trust was expected to boost production in industry.

      A reduction in interest rates would spur activity on the Zimbabwe
Stock Exchange, which has been on a bull-run despite the depressing economic
outlook.

      Investor interest on the money market would shrink because of negative
returns.

      The construction sector would also pick up as more and more people
would start to access loans.

      A reduction in interest rate would also lessen the burden on
borrowers, particularly those on mortgage. — Staff Reporter
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FinGaz

      Beleaguered workers allege corruption at commission

      Nelson Banya
      6/26/03 10:10:12 AM (GMT +2)

      MORALE at the Forestry Commission is reported to have reached its
lowest ebb following allegations of corruption, mismanagement, and
profligacy leveled against the top management by workers at the strategic
parastatal.


      The workers have also complained of what they termed "harassment at
the hands of the commission’s general manager, Enos Shumba."

      Workers at the parastatal, which has been hit by a spate of
resignations, have since written to Environment and Tourism Minister,
Francis Nhema, to register their displeasure at how the commission is being
run.

      "We as employees of the Forestry Commission have tried to raise the
irregularities within the organisation to both the chairman and the board
but it has become clear that the chairman has decided to ignore our
concerns.

      "This has led to frustration and a drop in the overall morale in the
organisation, which is evidenced by the recent spate of resignations. We are
now raising the same issues with you, our minister, because we feel only you
can correct the rot," reads the letter to the minister, which was left
unsigned for fear of reprisals.

      Nhema was yet to respond to the workers’ letter, dated May 9 2003, by
the time of going to press and efforts to seek his comments proved futile.

      The workers wrote to FC chairman, Langford Chitsike last year to
complain about several issues bedeviling the organisation, but did not get
any response, prompting them to seek the minister’s intervention.

      Problems at the commission have reportedly led to the resignation of
five senior managers since late last year to date, as frustration took its
toll, the workers alleged.

      Contacted for comment, Chitsike dismissed the workers’ allegations,
saying if there were any grievances against management, workers knew the
proper communication channels.

      "You have to be mindful of the fact that some people take pleasure in
creating things, but we are always prepared to listen and the workers know
that I have sent out a communique asking them to come out in the open if
they have any grievances.

      "There is no question of victimisation by management because as a
board, that is why we are here and have committees at board and management
level to deal with problems, although we will always let management run the
affairs of the commission without undermining their authority.

      "You talk about letters, which had no addresses and are unsigned,
which makes it difficult to communicate with people who are not prepared to
come out in the open in spite of our preparedness to listen and address
their concerns," Chitsike said.

      He professed ignorance at any resignations from the commission, saying
that he only knew of suspensions pending investigations of some officers.

      Efforts to contact commission general manager Enos Shumba failed as he
was said to be locked in a meeting with senior Forestry Commission
management.

      Complaints against preferential treatment of workers mounted following
last August’s advance of a R25 000 (about $ 175 000 at the time) medical
loan to a junior worker linked to a senior manager, when the rest of the
workers could access medical loans not exceeding $10 000.

      The worker in question has since left the commission’s employ without
repaying the loan, workers alleged.

      It is also alleged that the commission acted in contravention of the
country’s exchange control regulations by sanctioning the repair of a
commission vehicle assigned to one senior manager in Francistown, Botswana,
at a cost of P27 000, with the payment being effected following a
misrepresentation to the Reserve Bank of Zimbabwe.

      "We would like to add that we are aware that the foreign currency to
pay for the vehicle was applied for using the reason that the vehicle had
broken down in Francistown on official duty — a total lie," the workers
wrote to the Chitsike.

      It is believed the truck was ferried to Botswana for the repairs.

      Workers also accused management of circumventing tender procedures in
the procurement of computer technology for the commission at a price
significantly higher than that prevailing in the market at the time.

      Corruption and mismanagement of state enterprises have been blamed for
persistently draining the fiscus instead of boosting revenue, in spite of
operating in strategic areas of the economy with virtual monopoly status.

      The trend looks set to persist, as the government has virtually
shelved the privatisation of state enterprises
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FinGaz

      Blackie’s lawyer registered

      Staff Reporter
      6/26/03 10:11:09 AM (GMT +2)

      THE High Court yesterday registered Michael Hellens, a top South
African lawyer who will represent former High Court judge, retired Justice
Fergus Blackie, in the case in which the retired judge is facing corruption
charges.

      Justice Lavender Makoni granted temporal permission for Hellens to
practice law in Zimbabwe as he defends Justice Blackie, arrested in
September last year, in a criminal trial which opens at magistrates court
next week.

      Blackie, who retired from the bench last July, faces charges of
defeating or obstructing the course of justice, or alternatively breaching
the Prevention of Corruption Act arising from his alleged "unprocedural"
handling of an appeal by a woman convicted of stealing some money from her
employer.

      Blackie is alleged to have committed the offence when he quashed an
effective one-year jail term imposed by the magistrates court on the woman,
Tara White, without the concurrence of Justice Rita Makarau, with whom he
had heard the appeal.

      Blackie made headlines in July last year when, in his last case on the
bench, he convicted Justice Minister Patrick Chinamasa on two charges of
contempt of court and sentenced him to a three-month jail term and a $50 000
fine.

      Chinamasa appealed against both conviction and sentence on the basis
that he was out of the country when his trial took place and the High Court
ordered a fresh trial, but the trial has not yet taken off.

      Contempt of court charges against Chinamasa arose from his criticism
of a six-month jail term imposed by Justice Mahomed Adam in 1999 on three
Americans found in illegal possession of arms.

      Chinamasa, then as the country’s attorney general, described the
sentence as too lenient to induce a sense of shock.
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FinGaz

      Mugabe seen staying put until 2005

      Cyril Zenda
      6/26/03 10:13:51 AM (GMT +2)

      PRESIDENT Robert Mugabe, whose political career has been shaken by
social unrest triggered by poor economic performance, is unlikely to throw
in the towel before helping his party regain lost ground during the 2005
parliamentary elections.
      The result of the election, which is only about two years away, would
have a big influence on the political future of the ageing ZANU PF leader,
who has been living like an outcast since winning the disputed presidential
election last year.

      In the past, Mugabe has hinted that he was ready to step down after
wrapping up the catastrophic land reform exercise that has reduced Zimbabwe
from being the region’s bread-basket into almost a net importer of
agricultural commodities.

      The land reform, which has been followed by two audits so far and
sentiment by Mugabe that he would quit, are turning out to be a political
gimmick.

      Political analysts said there was no way the former bush war leader,
who has been at the helm of ZANU PF for nearly three decades, could call it
a day just about a year and a half before a key election.

      The 2005 parliamentary election could have serious effects on his
revolutionary party.

      "I don’t think he is likely to step down in the near future until he
get the assurance that his party is in a sound position to win any election
in the future.

      "My own prognosis is that Mugabe will not go until he is satisfied
that his party has regained its vibrancy and relevance — even in urban
areas — that it is in a position to win any election, be it presidential,
parliamentary or council after he is gone," University of Zimbabwe political
science lecturer, Eldred Masunungure said.

      Speculation has been rife since late last year that Mugabe was not
eager to complete his six-year presidential term that he won in a disputed
March 2002 election.

      So strong has been the speculation that it has even drowned sporadic
denials issued in the government media by Information Minister Jonathan
Moyo.

      Although Mugabe’s departure could be good for the country and the
southern African region, which is beginning to feel the contagious effects
of his misrule, there is the downside that needs to be managed properly.

      Any immediate departure by the 79-year-old leader could have cathartic
effects on his party and this could jeopardise its campaign to regain lost
political ground.
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FinGaz

      Rough ride awaits Mugabe’s successor

      Clemence Munyukwi
      6/26/03 9:50:45 AM (GMT +2)

      All roads seem to lead towards a baptism of fire for the ZANU PF
candidate who will vie for the presidency when President Robert Mugabe
finally decides to let go his grip on power.

      The ruling party’s poor record as well as our current leader’s shadow
are likely to hand him a rough ride in his attempt to journey to State
House.

      Conscious of a trend where former heads of state are made to account
for their past role, Mugabe is likely to opt for a man with soiled hands so
as to make any future prosecution impossible.

      Considering present day Zimbabwean politics, such a person will most
likely come from the party’s inner circle, a circle of men and women who
stand accused of presiding over the destruction of a once-promising nation.

      It is in that same circle where people who have been declared
unwelcome in most capitals around the globe can be found. What this means is
that his appeal to the outside world will be compromised as most will
perceive him in accordance with the "smart" sanctions he faces.

      The sanctions, which virtually signify an entry of one’s name in a
particular country’s black book, will act as a badge of shame, a badge
licensing the world to take a dim view of him.

      Suspicious of any traits rubbing off from Mugabe, the world is also
likely to maintain a distance until it is convinced that the individual is
not only pre-occupied with winning elections, but also has the capacity to
break away from ZANU PF’s terrible ways.

      Reception from Zimbabwe’s voters is not likely to be any better. A
replay of Kenya’s recent elections seems to be on the cards. A political
novice not versed in Kenya’s underworld of graft, Uhuru Kenyatta lost all
the same because of his connection with Moi.

      People sensed that the former KANU leader might have continued to pull
the strings from his retirement home. And Mugabe is no different from Daniel
arap Moi. So any signs that Mugabe may want to control from behind will only
result in his successor’s rejection.

      But in Zimbabwe’s case the jingle goes much deeper than that of East
Africa because the candidate will be coming from the dreaded ZANU PF.

      People are not likely to forget soon that it was under the ruling
party that a lot of sad things happened to Zimbabwe: lifetime savings were
eroded, democracy was suspended and alarm bells ignored.

      Secrecy was exalted, lying was perfected and criminals roamed free.
Hard workers migrated, activists exiled and professionals forced out. Again
and again the ravages went on. Corruption reached its peak, hatred reached
dizzy heights and propaganda became the highlight. In all that madness
children starved, youths lost hope and adults suffered.

      But under such conditions can it be said there is totally no hope for
any future ZANU PF candidate? It appears as if that depends on that
individual’s preparedness to make heavy compensations for his party’s past
blunders.

      It should be appreciated that Zimbabwe’s problems are of gigantic
proportions, yet they require simple answers. Like an onion, they are
layered but as is the case with the same onion; it is easy to get to their
core.

      They only need a leader who is a path-breaking individual and the
ruling party ought to know that. The individual must be prepared to branch
off from the present system which fails to realise that opposition political
leaders are spokesmen for a huge chunk of our Zimbabwean citizens.

      The present route of antagonising each other has only led the country
to the wilderness. Zimbabwe will be best served if it does not have
politicians who damn the consequences just because they know they have the
prowess to survive under harsh conditions.

      A Mikhail Gorbachev, minus his unnecessary mistakes, might prove to be
the calibre of an individual to take over the reins in the ruling party only
for the reason of preventing the country from going beyond redemption.

      It will not only be in the party’s interests, but it will also be in
the national interests; for it will prevent prolonged political friction.
Faced with a defining moment in their country’s history, the hardliners and
geriatrics in Russia’s Communist Party saw the need to pass on the baton to
a younger man less tied to an empty ideology.

      Whether he later won or lost, others still consider him a hero because
he saw the need for a nation of free people. After all what more can
Zimbabwe want except its own versions of Perestroika and Glasnost.

      Clemence Manyukwe is a journalism student.
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FinGaz

      And now to the Notebook . . .


      6/26/03 10:14:26 AM (GMT +2)

      The Great Uncle, in his accustomed wisdom, finally decided to dissolve
the ZESA board at a rally in rural Matabeleland over the weekend. Yes, here
in Zimbabwe if you do not follow the Great Uncle’s perorations at party
rallies, at the Heroes Acre and at the Harare International Airport, you
miss out a lot because all important policy announcements are made at such
events.

      But the Great uncle did not tell the nation whether his brother-in-law
Sydney Gata who had arrogated to himself God’s powers at ZESA would also be
clearing his drawers to make way for new brooms.

      Zimbabweans reeling from power-cuts have every reason to wish him well
in his future endeavours. To every pig comes his Martinmas!

      If the Great Uncle was so impressed with Gata’s performance, no one
would begrudge him if he would second this Gata fellow to turn around his
collapsing pig project at his Kutama home.

      The reason the Uncle gave for dissolving the board was that there were
serious disagreements which had stalled the all important rural
electrification programme.

      Surely there were bound to be disagreement on a board chaired by
someone who thought and acted like he had a private line to God. More
importantly, there were bound to be serious disagreements if there were some
right-minded people on this board because there is no worse madness than
taking power from productive sectors of the economy to pottering rural
chiefs in exchange for their people’s votes. Talk about economic sabotage?

      After all the noise about Justice Ben Hlatshwayo’s right to occupy
this farm in Mashonaland West, CZ is of the opinion that wherever possible,
judges should strive to stay clear of controversies because in the event of
some people getting aggrieved, they should confidently turn to our courts.
This becomes a bit awkward when a member of the judiciary is involved in the
wrangle.

      In our tradition, it is taboo for a woman to nurse a baby and be
pregnant at the same time.

      There are dozens of other farms that are equally good that the good
farmer-cum-judge could have moved to while Made and the farm owner sorted
each other out, unless he had an interest in the farmhouse itself or any
such other readily available infrastructure.

      It is also important to note that on some of these controversial
farms, some war veterans and people like our own national physical fitness
trainer Themba Mliswa may lose their tempers and end up beating people. If
the honourable judge would be caught in the cross fire and get beaten
thoroughly, the Press will simply report that a High Court Judge was beaten
thoroughly, and this would not be good for his office.

      The great fisherman

      After a busy week excoriating soccer supporters for not doing enough
to support the national team, making generous sponsorships, and finally
coming to the rescue of the national team by sky-jacking an Air Zimbabwe
plane to take the stranded team to Mali, over and above his routine duties,
the Prime Minister of Zimbabwe was surely tired.

      He decided to go to the resort town of Kariba to chill out with his
family and at the same time do the other thing he knows best — fishing.

      For about four hours, the family was in tears as the cussed boat
started playing yo-yo right in the middle of the lake. We just hope there
was a small radio on the capsizing boat to give his family the consoling
"Rambai makashinga" jingles to keep them from losing any more hope. Anyway,
that is what songs are for. They are there to cushion us when we sit on the
hard bench called suffering.

      More counterparts

      CZ is angry with Dr Made. Our "counterparts" from Mozambique were here
this week and he was not given the chance he previously requested to take
them around and show them what the "successful" new farmers are doing with
the land.

      He would have taken the delegation no further than the farms owned by
his colleagues at Herald House, to see for themselves what A2 models farmers
are doing.

      Hopefully the Cde-Dr will not hog the next delegation of
"counterparts" that comes in the country to see for themselves what we are
good at.

      cznotebook@yahoo.co.uk
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FinGaz

      Most new farmers won’t benefit from Arab bank project

      Staff Reporter
      6/26/03 9:43:24 AM (GMT +2)

      THE bulk of newly resettled farmers would be left out in the
disbursement of the US$5 million ($4.12 billion) facility advanced by an
Arab bank to the Agricultural Bank of Zimbabwe (Agribank).

      Analysts said the criteria that would be used in disbursing the
much-needed funds marginalise most farmers settled under the controversial
land reform.

      The facility is only open to net exporters, while repayments would be
made in United States dollars.

      Most newly resettled farmers grow crops for domestic consumption hence
they are not net exporters.

      They also lack the capacity to access foreign currency unless they get
government’s support.

      Unfortunately, it is the new farmers who require cheap funding to buy
inputs and agricultural equipment.

      The Arab Bank for Economic Development in Africa (BADEA), threw a
lifeline to Agribank recently, when it extended the facility.

      Private entrepreneurs in the agricultural and food processing sectors
would be the main beneficiaries.

      In a statement, Agribank said that as a condition to qualify for the
fund, only projects substantially owned by Zimbabwean citizens would be
considered.

      Borrowers can access a minimum of US$50 000, which is $41.2 million on
the inter-bank rate.

      The bank will finance 10 percent of the required loan, while the BADEA
would contribute about 50 percent of the total project. The beneficiaries
would meet the balance.

      The loan capital that will be entered in the bank’s books and loan
covenants will be made available to beneficiaries in US dollars.

      All applicants will subject to a processing fee of $100 000.

      In addition, establishment fees will be at one percent of the
principal amount.

      The under-capitalised Agribank has a non-performing loan book, owing
to its exposure to commercial farmers displaced by the government’s
controversial land redistribution exercise.

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FinGaz

      Woes dog tobacco industry

      Staff Reporter
      6/26/03 9:45:12 AM (GMT +2)

      THE tobacco industry, already facing dwindling production levels
caused by the haphazard land reform, could be headed for total collapse
because of poor prices, industry players said last week.

      Farmers attending the Zimbabwe Tobacco Association (ZTA) annual
congress, which ended in Harare last week said prices fetched from the three
auction floors were too low in Zimbabwe dollar terms because of the skewed
exchange rate.

      Industry players are virtually subsidising the tobacco industry
because returns cannot match rising production costs.

      "Tobacco cannot sustain the subsidy. ZTA should take all possible
measures to avoid the imminent destruction of the Zimbabwe tobacco growing
industry," said Duncan Miller, ZTA president.

      Miller said Zimbabwe is expected to produce 85 million kg of tobacco
in the next farming season, compared to 168 million kg produced last season.

      Tobacco farmers at the 43rd ZTA annual congress were unanimous that
sustainable solutions would be required to avert the industry’s collapse.



      Output, which has fallen drastically because of the controversial land
reform, could further plunge into a deep hole if the government maintains
the exchange rate at current levels.

      Farmers are paying nearly $2500 for every United States dollar sourced
on the parallel market yet their receipts are liquidated at $824 to the
greenback.

      "We resolved that the ZTA lobby the relevant authorities to ensure
that funds are made available to procure direct crop inputs such as
fertiliser, fuel and chemicals," said Silas Magomo, a representative of
tobacco growers in Mashonaland Central.

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FinGaz

      Mugabe needs to be persuaded

      Taungana Ndoro
      6/26/03 9:49:06 AM (GMT +2)

      Many factors are at present indicating that President Robert Mugabe is
now too exhausted to endure another day in the office. The wear and tear of
being head of a deteriorating state is set to catch up with him sooner
rather than later.

      The many national and international wars he is battling in are not the
kind a human being of flesh and blood can sustain for long. Sadly, some of
the wars are against the wrong people and the wrong systems.

      Mugabe knows, better than any of us, that his time is up. He can be
compared to an AIDS victim who has lived with and fought against HIV since
the late 90s but now the virus is taking its toll and the victim knows
better than the doctor, that his days are numbered.

      But just like an AIDS victim, the old man never wants to go down in
mortification and shame. He does not want to be stigmatised and entirely
blamed for his shortcomings and those of the nation.

      This is why Mugabe reacted ruthlessly towards the MDC’s ‘final push’.
Deep down he is clamouring to step down but he does not want to go in
disgrace and distress.

      It is evident now that the hyperbolic slogan, "the land is the economy
and the economy is the land" has finally been exposed for the malfunctionary
propaganda that it is.

      Even though we now have the land, our economy remains a laboratory
test-tube example that land without good governance renders a state
inhabitable.

      This explains why we are now being coaxed to endure hardships through
the anthem of "Rambai Makashinga."



      The effect of Mugabe’s prolonged reign is that it has made him a devil
in the eyes of the ordinary Zimbabweans because he has presided over an
inflationary climate that has eroded their hard-earned savings and rendered
a simple personal budget a thing of the past.

      The greatest economic crisis in Zimbabwe today is boisterous inflation
that, like a wild fire on a windy day, is totally out of control.

      The situation, which is Mugabe’s greatest undoing at the moment, is
reminiscent of Germany’s grotesque hyperinflation of 1923, when a
wheelbarrow full of money could not buy a newspaper, making it cheaper to
wrap vegetables in bank notes than newspaper.

      Those who had taken a 20-year insurance policy in 1903 and had made
the payments faithfully only managed to buy a loaf of bread with the money
when the policy matured in 1923.

      A student at Freiburg University ordered a cup of coffee at a cafe.
The price on the menu was 5 000 marks. He had two cups. When the bill came,
it was for 14 000 marks.

      "If you want to save money," he was told, "and you want two cups of
coffee, you should order them both at the same time."

      We also have probably heard the story about the workers being paid
every few hours, and of the workman who took a wheelbarrow full of paper
money to the store to buy bread. He parked it outside (after all, who would
bother stealing it?) while he went in to see if any bread was available.
When he came out, he found the money dumped on the ground, and the
wheelbarrow stolen!

      The mark was finally revalued on December 1, 1923 at the rate of 1 000
000 000 000 old marks to one new mark, or one trillion to one.

      When I was a history student in high school, the 1923 German situation
seemed to me like the figment of some bizarre Jewish historian’s
hallucinations — little did I know that exactly 80 years after the German
catastrophe, my homeland would be singing the blues.

      It’s not surprising these days that as one picks a commodity from the
supermarket shelf, an attendant follows behind changing the price such that
the next time one wants to buy the same commodity, it would have most
probably doubled in price.

      I had the opportunity to go down South last weekend and I should
confess that buying something that had a price tag for one unit of the
currency was so exciting. With just R500 a Zimbabwean can have a weekend of
a lifetime in South Africa.

      It’s a pity Mugabe is feeding the country to the sharks by blindly
holding onto power until kingdom come. The crisis of having Mugabe at the
helm of a smouldering nation is that it will allow capitalists to manipulate
the situation knowing that fingers will always be pointed at State House.

      We will never know the level of corruption, let alone the extent of
the black market as long as Mugabe is President. The real culprits will only
be exposed when they can no longer point a finger at Mugabe.

      Mugabe must just give Zimbabwe a chance to start afresh while it still
can. It’s unfortunate that we made Mugabe what he is today.

      No one is born a dictator. Dictators are manufactured. We never
seriously criticised him where we knew he could have acted better. We took
long to earnestly censure him hence he amassed so much power that it will
take nothing short of persuasion to do away with his runaway megalomania.

      Someone, anyone especially within the ruling party in 1995 at least,
should have advised that Mugabe’s time was up but instead no one dared to
and now we must be cognisant of the fact that Mugabe might never leave
office voluntarily if we do not guarantee his safe exit.

      He needs to be assured that he will not meet the fate of others before
him such as Milosevic, Chiluba, Mussolini, Nicolae Ceausescu, Mobutu Sese
Seko, Suharto and the rest of them.

      They say power corrupts and absolute power corrupts absolutely. And
for Mugabe, a man of many caps, the cap of absolute power seems to fit
perfectly.

      Zimbabwe is a ship lost at sea and only a change in the captaincy will
save us from being wrecked in the economic and political storm.

      For the good of the nation, the cases against both Mugabe and Morgan
Tsvangirai must be dropped to enable dialogue to commence.

      Mugabe needs to be persuaded to allow someone else, not necessarily
Tsvangirai, to take the wheel lest we all perish at sea.

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