http://www.thezimbabweindependent.com
Thursday, 04 June 2009 21:52
THE United
States Congress has started hearings on the removal of
sanctions imposed on
Zimbabwe in 2001 over political repression and a series
of policy
disputes.
This comes as Prime Minister Morgan Tsvangirai
prepares to visit
Europe and the US to lobby for funding for economic
recovery and lifting of
the sanctions.
Tsvangirai, who
has called for the removal of the "restrictive
measures", is expected to
meet senior European Union (EU) leaders and US
President Barack Obama
during his visit this month. He is also expected to
meet British Prime
Minister Gordon Brown. Finance minister Tendai Biti this
week called for the
lifting of the sanctions by the West. Biti will next
week address the World
Economic Forum in Cape Town, focusing on Zimbabwe's
reconstruction.
After Biti's recent return from Washington and
London, he told cabinet
that US officials had indicated that the Obama
administration would provide
humanitarian assistance to Zimbabwe while
Congressional hearings on
sanctions went on.
Zimbabwe has
formed a ministerial team which is currently engaging the
EU on sanctions
under Article 8 of the Cotonou Agreement, a pact between the
EU and African,
Caribbean and Pacific group of states signed in 2000.
Article 8
dialogue encompasses a regular assessment of developments
concerning respect
for human rights, the rule of law and governance.
Sources said
hearings on the Zimbabwe Democracy and Economic Recovery
Act (Zidera) have
now started in the US and this could lead to the partial
lifting of
financial sanctions imposed under this law. It is said the US is
willing to
remove economic sanctions, but not those targeted at President
Robert Mugabe
and his cronies, or their companies.
Sources said US
Congressman Donald Payne was in Zimbabwe last week and
held talks with
Mugabe, Tsvangirai and deputy Prime Minister Arthur
Mutambara on sanctions,
among other issues.
The sources said Payne, chairman of the
sub-committee on Africa and
Global Health of the committee on Foreign
Affairs and co-founder of the
Congressional Black Caucus, discussed possible
ways sanctions could be
lifted or scaled down.
It is said
the US is prepared at this stage to remove financial
restrictions on
Zimbabwe so that it can provide the country with economic
aid.
At the moment Washington can only provide humanitarian
assistance due
to Zidera.
Sources said Obama could soon
issue an executive order to deal with
the matter to enable the US to help
out Zimbabwe. Tsvangirai is expected to
push for such action. Sources said
Tsvangirai could be able to secure up to
US$700 million from the US during
his forthcoming visit. He is also expected
to extract significant donations
from the EU states. A multi-donor trust
fund has been formed to help
Zimbabwe.
However, donors have set conditions around political
and economic
reforms before they release any money. So far Zimbabwe has only
been able to
secure just over US$1 billion. The country is looking for US$10
billion in
the next three years for economic recovery. Cabinet has approved
the
commercialisation and privatisation of state companies in a bid to raise
funds for economic recovery.
Zimbabwe has appealed to Sadc
countries to firm up on their pledges
for funding, while they step up their
campaign to get sanctions lifted.
The US and EU sanctions have
worsened Zimbabwe's economic crisis
triggered by government's unbudgeted
expenditures, the DRC war, land
invasions as well as mismanagement and
corruption.
Zidera was passed by the US Congress at the end of
2001. It was
introduced by Senators Bill Frist and Russ Feingold and was
then sponsored
by Jesse Helms, Hillary Clinton, Joseph Biden and Frist
himself. Senate
passed the Bill on August 1 and the House passed it on
December 4. Former
president George Bush signed it into law on December
21.
Under Zidera, unless the US president gives an order, the
Secretary of
the Treasury has to instruct the US executive directors in each
international financial institution to oppose giving Zimbabwe loans, credit
or guarantees.
Zidera forbids the cancellation or reduction
of the country's
indebtedness to Washington or any international financial
institution which
includes multilateral development banks and the
International Monetary Fund.
Multilateral development banks
referred to include the International
Bank for Reconstruction and
Development, International Development
Association, International Finance
Corporation, Inter-American Development
Bank, the Asian Development Bank,
the Inter-American Investment Corporation,
the African Development Bank,
African Development Fund, European Bank for
Reconstruction and Development,
and Multilateral Investment Guarantee
Agency.
The
Multilateral Investment Guarantee Agency is important in
underwriting loans
between governments.
BY DUMISANI MULEYA
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
21:39
IN a desperate bid to raise funds to revive the comatose economy,
cabinet has approved a commercialisation and privatisation plan which will
take different forms as part of a rationalisation, reconstruction and
transformation agenda.The country needs close to US$10 billion to rivitalise
its battered economy and so far has received close to US$1
billion.
Minister of Finance Tendai Biti (pictured) told the
Zimbabwe
Independent on Wednesday that government would access different
state assets
and decide on the model which they will use either to
commercialise or
privatise them.
"Cabinet has approved the
process of commercialisation and
privatisation. This includes how it will be
done, timing and objectives,"
Biti said.
Biti said the process
had been divided into different categories and
classified state enterprises
under each of the groups to ensure maximum
benefit for the
country.
He said there are some high-value state companies
which had huge
potential but need capitalisation and good
management.
These categories include companies such as TelOne,
POSB, power
stations, Zisco and National Railways of
Zimbabwe.
He also said there are some strategic high-value
enterprises which
however are seriously draining the fiscus such as Air
Zimbabwe.
"These would need compre-hensive commercialisation
and partnership
plans to be revived," Biti said.
Biti
further said there are some strategic high-value state
enterprises which
were currently dormant but had a potential if they could
be revived. These
include companies such as the Cold Storage Company and
Arda.
"Government should consider various options to revive
and resuscitate
these companies," Biti said.
He indicated
that some of the companies needed to be commercialised
and privatised at the
opportune time to ensure government gets maximum
benefit.
Biti said government was determined to ensure that com-mericlaisation
and
privatisation plan succeed because it was an integral part of the
economic
recovery programme Sterp. At the official launch of the 100-day
work plan
for the inclusive government Economic Planning and Investment
Promotion
minister Elton Mangoma said government would not embark on a
"wholesale"
privatisation drive of undercapitalised public utilities.
"Our
focus is not on wholesale privatisation," he said.
The minister
said government would, however, "develop stra-tegies" to
ensure that "key
parastatals" such as Zesa and the National Railways of
Zimbabwe operate
efficiently.
According to the 100-day plan document, public
sector reforms would
include civil service and Reserve Bank reforms and the
Public Finance
Management System and the Results Based Management System.
Steel
manufacturing company Zisco, according to the action plan document,
would
complete relining of one of its blast furnaces in 90
days.
Zisco has over the years been a target of investors
wishing to take
full control of the underutilised firm.
"There would be parastatals that require reforms...where there is
general
agreement the public will know.
Selling assets at low prices does
not bring any benefit either to the
country or anybody," Mangoma
said.
BY PAUL NYAKAZEYA
http://www.thezimbabweindependent.com
Thursday, 04 June
2009 21:37
PARLIAMENT has no mandate to call for by-elections in vacant
constituencies.
Austin Zvoma, the clerk of parliament, said
this on Wednesday in
reaction to claims made to the Zimbabwe Independent
last week by the
Zimbabwe Electoral Commission (ZEC) deputy chief elections
officer, Utoile
Silaigwana, that the "role of calling for by-elections lies
with parliament
and they have to notify us of the need to hold
by-elections".
"These utterances do not reflect the correct legal
position with
regard to the filling of vacancies in the membership of
parliament," Zvoma
said.
He said it was not the role of
parliament to call for the by-elections
or to give ZEC a proclamation for
the polls.
"The role of the presiding officers of parliament is limited
to
notifying the commission and the president of vacancies. It is the
president
who has the role, in terms of the (Electoral) Act, of publishing
notices in
the Government Gazette ordering new elections," Zvoma
said.
"Currently there are seven vacancies in the membership of
parliament,
and both the ZEC and the president were notified of each of
these vacancies
as they rose as required by Section 39(1) of the Electoral
Act."
The vacant House of Assembly constituencies are
Gokwe-Gumunyu (left
vacant after the death of a Zanu PF MP), Matobo North
(vacant after
incumbent Lovemore Moyo was elected Speaker of the House of
Assembly),
Guruve North (vacant after the death of Zanu PF lawmaker) and
Bindura North
(resulting from the death of the Zanu PF
legislator).
Vacant Senate seats are Chegutu (vacated by Edna
Madzongwe on election
as Senate President), Chiredzi (vacated by Titus
Maluleke on appointment as
provincial governor for Masvingo) and Gokwe South
(vacated by Jaison Machaya
on appointment as provincial governor for
Midlands). -- Staff Writer.
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
21:37
HIGH Court Judge Bharat Patel yesterday postponed to today the
case of
four freelance journalists challenging the legality of the Media and
Information Commission (MIC).
Patel postponed the matter after
lawyers representing the
respondents --- Media, Information and Publicity
minister Webster Shamu, the
ministry's permanent secretary George Charamba,
MIC executive chairperson
Tafataona Mahoso and Prime Minister Morgan
Tsvangirai -- said they had
received court papers too late on Wednesday to
get instructions from their
clients.
Shamu, Charamba and
Tsvangirai were represented by the
Attorney-General's office, while Mercy
Chizodza appeared for Mahoso.
The four freelance journalists,
Stanley Gama, Valentine Maponga,
Stanley Kwenda and Jealous Mawarire, filed
an urgent chamber application on
Wednesday arguing that the MIC was
abolished in January 2008 after the
amendment to the Access to Information
and Protection of Privacy Act
(Aippa).
The journalists,
through their lawyer Selby Hwacha, argued that the
MIC was null and void and
had no legal basis to require them to register
with it to cover the ongoing
Comesa Summit at Victoria Falls.
Last week, the MIC announced
that journalists wishing to cover the
Comesa summit should register with
it.
"Unless this honourable court intervenes urgently,
applicants and the
general public will suffer irreparable harm," said Hwacha
in the certificate
of urgency.
During yesterday's brief
hearing, Justice Patel quizzed the counsel
for the respondents as to whether
a postponement to today would serve any
purpose to the journalists given the
urgency of the application and the fact
that the Comesa Summit had already
commenced.
The judge also enquired whether the arguments for
the respondents
would be legal or factual stating that the latter had no
relevance to the
proceedings as the question was whether the statement
published in the
Herald of June 2 regarding the status of the MIC was either
correct or
incorrect at law.
He later ruled that the matter
be postponed to today and be heard
without regard to whether or not the
counsel for respondents would have
received instructions by
then.
Meanwhile, Shamu and Charamba last week summoned state
media editors
and instructed them to limit their coverage of
Tsvangirai.
The editors were summoned to Shamu's office on
Thursday and given a
tongue-lashing and warned that they should scale down
on Tsvangirai's
coverage or face dismissal.
Editors
summoned were those from the Sunday Mail, the Herald, the
Chronicle, the
Sunday News, Kwayedza and the Zimbabwe Broadcasting
Corporation.
Media deputy minister Jameson Timba was not
invited to the meeting
with the state editors.
Sources said
Shamu and Charamba were livid over the positive stories
Tsvangirai and
cabinet ministers from his party were getting in the state
media, especially
on television.
"The two made it clear to the state editors that
it was unacceptable
for them to cover Tsvangirai on a daily basis and
ordered that the state
media should ignore his activities. Instead they were
instructed to increase
coverage of activities by ministers from Zanu PF in
the all-inclusive
government," said one of the sources.
The
sources said Shamu and Charamba told the state editors that the
stories they
carried implied that the success of the all-inclusive
government was only
driven by the two MDCs and not Zanu PF.
Charamba is said to
have warned the state editors to desist from
covering statements from the
MDC ministers as policy.
Efforts to get comment from Shamu and
Charamba were in vain last
night.
BY NQOBILE BHEBHE AND LOUGHTY
DUBE
http://www.thezimbabweindependent.com
Thursday, 04 June
2009 21:32
THE 25-member parliamentary select committee on the
constitution will
from next Saturday embark on provincial public hearings on
the crafting of a
new constitution amid reports that US$36 million is needed
to bankroll the
process.
Parliament's Standing Rules and Orders
Committee this week approved
the US$36 million budget for the
constitution-making process and forwarded
it to government, which is
battling to mobilise financial aid to revive the
country's comatose economy.
Donors have expressed interest in funding the
process.
Co-chairpersons of the committee -- Paul Mangwana and Douglas
Mwonzora -- on
Wednesday said it was the prerogative of government to source
the funds for
the cumbersome process that would result in a new supreme law
for the
country by September next year.
"As a select committee we have
come up with a working budget for the
whole process and the Committee on
Standing Rules and Orders has since
approved it," Mangwana said. "At present
the draft budget is with the
government and it is yet to be
approved."
According to the Global Political Agreement (GPA)
signed last
September by President Robert Mugabe, Prime Minister Morgan
Tsvangirai and
Deputy Prime Minister Arthur Mutambara, the select committee
should convene
an "all-stakeholders" conference within three months after
its appointment.
The public consultation process, the pact
reads, should be completed
no later than four months after the stakeholders
conference.
"The draft constitution shall be tabled within
three months of
completion of the public consultation process to a second
all-stakeholders
conference," reads the GPA.
"The draft
constitution and the accompanying report shall be tabled
before parliament
within one month of the second all-stakeholders
conference." The draft and
the accompanying report would then be debated and
if necessary amended in
parliament within one month, before it is gazetted
and a referendum
conducted within three months.
Mangwana said the select
committee had decided to embark on provincial
public hearings starting on
June 13. The hearing would last 30 days.
Zimbabweans in the
diaspora, he said, would be consulted through
embassies, but it would be
subject to the availability of recourses. A
website would also be created
for them to contribute their views.
The views gathered during
the hearings would be tabled at the first
all-stakeholders conference in
July to be attended by over 5 000 delegates
drawn from the country's 10
provinces.
Mangwana said the hearings would take place at ward
level in the
country's 210 House of Assembly
constituencies.
"On average each constituency has 10 wards and
a minimum of three days
of consultations a ward would be set aside," he
said. "This should provide
ample time to gather the people's
views."
The views would be forwarded to thematic committees
that would sift
through the data and come up with a draft constitution
within three months,
which will be tabled before a second all-stakeholders
conference.
The draft and the accompanying report would then be
debated and if
necessary amended in parliament within one month, before it
is gazetted and
a referendum conducted within three months.
In the event that the draft is approved in the referendum, it shall be
gazetted within a month of the date of the plebiscite and should be
introduced in parliament not later than a month after the expiration of a
period of 30 days from the date of the gazetting.
Asked on
the relevance of the Kariba draft which is stated in the GPA
as a reference
document, Mwonzora said it was "just like any other document
that has been
submitted to us for consideration".
Mwonzora said the committee
has since its appointment in April
received draft constitutions from the
Margaret Dongo-led Front for Democracy
in Zimbabwe, the National
Constitutional Assembly (NCA), MDC-T and Law
Students
Association.
Earlier in the week, Constitutional and
Parliamentary Affairs minister
Eric Matinenga had told journalists in the
capital that when Mugabe said the
Kariba draft should be the basis for
consultations "he was just expression
his opining which is not
binding".
Mugabe recently told his Zanu PF politburo that the
Kariba draft,
which leaves the powers of the president in tact, would be the
basis of the
constitution-making process.
Mugabe wants the
Kariba draft because it retains the executive
presidency.
Section 78 of the secret Kariba draft says executive authority would
be
vested in the president and cabinet which is similar to the current
Lancaster House constitution's Section 7 before the 19th
amendment.
The president would remain the head of state and
government, as well
as commander in chief of the defence
forces.
Section 88 of the Kariba draft says there will be two
vice president
but does not have a provision for a prime
minister.
Zimbabwe is currently governed under the 1979
constitution agreed at
the Lancaster House talks in London.
The constitution has been amended 19 times since the country's
Independence
in 1980.
An attempt to introduce a new constitution between
1999 and 2000
failed after the NCA and other civil society organisations,
backed by a
nascent MDC, successfully campaigned against a
government-sponsored draft.
A fierce political battle is
expected when the draft goes to a
referendum, with the NCA and the Zimbabwe
Congress of Trade Unions having
already said they would campaign against it
because it will not be a
people-driven product.
However,
Mwonzora was optimistic that the draft would get the nod of
Zimbabweans at a
referendum.
"The difference between 1999 and 2009 is that we have an
inclusive
government. We have a major political force which was in
opposition, now in
government," he said.
BY NQOBILE
BHEBHE
http://www.thezimbabweindependent.com
Thursday, 04 June 2009 21:29
MDC vice-president Gibson Sibanda has lost his ministerial post in the
inclusive government after failing to secure a parliamentary seat within
three months of his appointment to cabinet.
Plans by the three
principals to the global political agreement -
President Robert Mugabe,
Prime Minister Morgan Tsvangirai and Deputy Prime
Minister Arthur Mutambara
- to create a non-constituency seat either in the
House of Assembly or
Senate for Sibanada hit a brickwall.
The former president of the
Zimbabwe Congress of Trade Unions was
appointed one of three Ministers of
State for National Healing and
Reconciliation on the strength that he would
find a constituency within
three months as stipulated in the constitution.
The grace period lapsed on
May 19.
Clerk of Parliament
Austin Zvoma this week told the Zimbabwe
Independent that Sibanda was yet to
become a legislator and that there was
no notice to indicate a vacancy he
could fill.
"Sibanda is not a member of parliament and I have
not been informed
that there is a vacancy in any of the two houses," Zvoma
said. "For him to
be a member he has to secure a seat. Failure to secure a
set might affect
his position as a minister since he has to secure one
within three months of
his appointment."
The MDC exhausted
the slots it had of appointing non-constituency
lawmakers when the inclusive
government was formed.
Sibanda, however, still has a chance to
bounce back into cabinet if
one of his party's MPs agrees to take up a
gubernatorial or diplomatic post
in the coming months and allow him to
contest for the vacant seat.
Sources within the MDC said the
party was still weighing three options
for Sibanda.
The
sources said one option would be for the party to appoint Mangwe
MP Edward
Mkhosi as governor of Matabeleland South and give Sibanda an
opportunity to
contest in that constituency.
The sources said the second
option would see Insiza North MP Siyabonga
Malandu appointed a diplomat to
make room for Sibanda.
Tsvangirai a fortnight ago announced
that as part of the deal to solve
outstanding issues in the GPA, the three
principals had agreed that out of
the five available diplomatic vacancies,
the MDC-T would get four and the
MDC one.
The sources said
the third option the MDC-M had was to appoint the
party's director of
elections, Paul Themba Nyathi, as the governor of
Matabeleland South and
fire one of the suspended MPs and allow Sibanda to
contest in the vacant
constituency.
The suspended MPs are Abednico Bhebhe (Nkayi
South), Njabuliso Mguni
(Lupane East), Norman Mpofu (Bulilima East), Maxwell
Dube (Tsholotsho South)
and Thandeko Zinti Mkandla (Gwanda
North).
"The party leadership is still weighing the options
(but) all options
however are not safe as there is a chance Sibanda might
not win if
challenged by an independent candidate," said one of the
sources.
The source said the most viable option the party had
was to appoint
Malandu as a diplomat and let Sibanda contest in his
constituency.
The source said Sibanda was respected in Insiza
South since he came
from the area.
MDC spokesperson Edwin
Mushoriwa referred all questions pertaining to
Sibanda's case to the party's
deputy secretary-general Priscilla
Misihairabwi-Mushonga who was not
reachable for comment.
However, the sources said it will be
catastrophic for the Mutambara
faction to fire the MPs it suspended for it
risked losing the constituencies
to the same individuals if they stood as
independents.
"This has been made clear to Mutambara that he
risked losing some of
the seats the party has if he approved plans to fire
the suspended MPs,"
said another source.
BY LOUGHTY
DUBE
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
21:23
THE high-profile trial of four of the 16 human rights and MDC-T
activists accused of plotting to destabilise the country and overthrow
President Robert Mugabe's government opens in the High Court on
Monday.
MDC-T Mashonaland West women's assembly chairperson
Concillia
Chinanzvavana, Zvimba South district chairperson Fidelis Chiramba,
district
women assembly secretary Violet Mupfuranhewe, and district youth
chairperson
Collen Mutemagau face charges of contravening provisions of the
Criminal Law
(Codification and Reform) Act.
The four are part
of 16 human rights and MDC-T activists who claimed
that they were abducted
by state security agents between October and
December last year on
allegations of banditry.
In the case of Chinanzvavana,
Chiramba, Mupfuranhewe and Mutemagau,
the state alleges that between July
and October 30 2008 in Banket, the four
acting in common purposes,
unlawfully and intentionally recruited Tapera
Mupfuranhewe and other MDC-T
youths to undergo military training in Botswana
"for the purpose of
committing acts of insurgency, banditry, sabotage or
terrorism" in the
country.
According to the summary of the state case, the
accused "incited" the
youths to undergo the military training under a
programme dubbed the
National Youth Symposium Training.
"The accused did this through mostly holding meetings at accused two
(Chiramba)'s house where a high turnout of people numbering to a hundred
would attend, and accused one (Chinanzvavana) would address these meetings
in the presence of all the other accused," read the
summary.
At one of the meetings, the state alleges,
Chinanzvavana said Mugabe
should be removed from power because he had
contributed to "the hunger,
poverty and unemployment" people were
experiencing.
"Amongst other people the accused managed to
recruit one Tapera
Mapfuranhewe to undergo military training in Botswana.
Interviews were
conducted at Harvest House's second floor", the summary of
the case read.
"At the time Tapera Mupfuranhewe went for the interview there
were a total
of 51 other interviewees of whom 48 were males and three were
females. The
interview was conducted by a Ms Ncube and a Professor
Malvern."
The state further alleges that the military training
was conducted at
Okavango Training Camp in Botswana and "two of the
instructors answered to
the names of Tole and Vusa".
The states
would call seven witnesses, among them a senior Central
Intelligence
Organisation officer, Asher Walter Tapfumaneyi, police Senior
Assistant
Commissioner Simon Nyathi and Chief Superintendent Peter
Magwenzi.
On June 29, the second case of alleged insurgency
would be heard in
the same court.
Regis Mujeye, freelance
journalist Shadreck Andrison Manyere, Prime
Minister Morgan Tsvangirai's
former aide Gandhi Mudzingwa, MDC-T security
director Kisimusi Dhlamini and
party members Zacharia Nkomo, Chinoto Zulu,
and Mapfumo Garutsa, would be
facing five counts of twice bombing Harare
Central Police Station, Manyame
River Bridge and Rail Bridge and Harare CID
headquarters at Morris
Depot.
The last case would be tried in the High Court on July
20.
Manuel Chinanzvavana, Zimbabwe Peace Project director
Jestina Mukoko,
Audrey Zimbudzana, Brodrick Takawira and Pieta Kaseke would
stand trial on
allegations that between April 2008 and October 31 2008 they
recruited
Ricardo Hwasheni to undergo military training in Botswana for
purposes of
banditry in Zimbabwe.
Meanwhile, the full bench
of the Supreme Court would on June 25 hear
the case of Mukoko and other
political abductees in which they complain that
their constitutional rights
were infringed by their alleged abduction last
year, lengthy unlawful
detention, treatment during detention [including
torture] and the State's
failure to take appropriate action against those
responsible while at the
same time vigorously pursuing criminal charges
against the
abductees.
The court would be asked to stop the prosecution of
the abductees
until the case against their alleged kidnappers had been fully
investigated
and prosecutions mounted against those
responsible.
BY CONSTANTINE CHIMAKURE
http://www.thezimbabweindependent.com
Thursday, 04
June 2009 21:20
SHORTLY after taking to the podium, following hours of
being showered
with praise in song and speeches, MDC-T leader Morgan
Tsvangirai exercised
his authority when he ordered party members not clad in
party regalia to do
so. In no time there was a sea of red T-shirts in the
hall.
The venue was Andy Millar Hall at the Exhibition Park,
Harare, where
over 500 delegates had crammed in to attend the party's ninth
annual
conference.
Among some high-ranking party officials that
were caught unawares by
Tsvangirai's instruction were party secretary of
Defence and co-Home Affairs
minister Giles Mutsekwa, Science and Technology
minister Heneri Dzinotyiweyi
and party policy secretary Eddie
Cross.
Despite complying with the instruction, the party
members saw this
gesture as an icebreaker by their party leader before
officially opening the
conference.
Having had a turbulent
relationship lately with civic organisations
and white commercial farmers
who have propped up the MDC since its infancy,
party chairman Lovemore Moyo
acknowledged the presence of Commercial Farmers
Union president Trevor
Gifford and National Constitutional Assembly chairman
Lovemore
Madhuku.
Although not present during the opening of the conference,
the MDC-T
also welcomed former United Kingdom legislator Kate Hoey. For a
party that
has lately exposed the simmering tension within the inclusive
government,
Tsvangirai needed more friends than foes.
"The
coming years will test our strength and friendship. They will
test our
commitment to our ideals as the journey ahead will not be easy but
it is a
journey that we must complete," he said.
"It is these ideals
that tell me that a land reform programme must
empower the majority of
Zimbabweans without victimising any of our citizens
and it must ensure food
self-sufficiency. It cannot be based on racist
persecutions that leave
productive land fallow and our people hungry."
After
Tsvangirai's remarks, Gifford told the Zimbabwe Independent on
the sidelines
of the conference that "two thirds of those (farmers) removed
from farms no
longer wish to farm but require a dignified exit where full
compensation for
losses and damages are paid according to international law".
At
a tea break, delegates were provided with a breakfast served by a
local
hotel. The quality of party regalia and the food served pointed to
substantial funds splashed on this annual meeting designed to provide a
reality check for the decade-old party.
Seemingly
countering threats of discrediting the constitutional reform
process now in
place following uproar among some civic society
organisations, Tsvangirai
warned that not taking part in the reform exercise
could be self-destructive
for some organisations.
"There is no point in emphasising the
importance of process instead of
content at this strategic moment; this
could be suicidal," Tsvangirai said.
A day after stating his
position on the controversial
constitution-making process, the MDC-T
softened its position in an attempt
to mend relations with civil society
partners.
It declared in its resolutions: "Now therefore it is
resolved that the
conference calls for the transitional government to take
on board concerns
by the civic society on the process and ownership of the
constitution-making
process initiated in the Global Political Agreement. The
party shall
actively participate and mobilise actively in the
constitution-making
process and further more shall work with civic society
in reaching some
understanding on the process."
The
September 15 power-sharing agreement tasks a 25-member
parliamentary team
formed earlier this year to spearhead the reform exercise
against a backdrop
of resistance from civic society organisations such as
the National
Constitutional Assembly led by Madhuku.
"Concerned and
frustrated" by delays by the new government to convene
a meeting of the new
National Security Council, of which Tsvangirai would be
a member, the MDC-T
conference demanded the transitional government "move
urgently" to ensure
transformation of state institutions. The council
replaced the Ian
Smith-initiated Joint Operations Command which was attended
by service
chiefs.
The MDC-T leadership demanded the immediate resignation
of central
bank chief Gideon Gono and Attorney-General Johannes Tomana in
the "public
interest".
The dispute over the reappointment
of the two has been referred to
regional mediators that brokered the
power-sharing pact between Mugabe,
Tsvangirai and Arthur Mutambara of the
MDC.
The MDC challenged government to urgently address the
welfare of
victims of politically-motivated violence despite a lack of
"legal framework
for the national healing" process.
"Noting the reference of GPA outstanding issues to Sadc, conference
calls
for the immediate convening of an extraordinary summit of Sadc to
urgently
deal with the outstanding issues," the party's resolutions
read.
While MDC secretary-general Tendai Biti, backed by the
party's top
leadership, was announcing the resolutions to the press, party
supporters
were toyi-toying at the Glamis Stadium which is adjacent the
hall.
Most of the supporters anticipated an update from Tsvangirai
regarding
the inclusive government.
Unfortunately for them that
was not to be.
A lunchtime rally that was scheduled after the
two day conference was
cancelled.
BY BERNARD MPOFU
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
21:14
PRESSURE groups continue to push for broader reforms in the
country's
judiciary and penal system, which is saddled by a critical
shortage of food,
and in many instances, resulting in inmates contracting
and dying from
treatable diseases.
Today, a fund-raising
function will take place in Harare to raise
funds for Chikurubi Maximum
Security Prison inmates.
To deal with problems affecting the
judiciary and the country's
prisons, the inclusive government under its
100-day plan has set out three
key areas for the Ministry of Justice and
Legal Affairs - meeting the needs
of prisoners; operationalising the
Judicial Service Commission; adhering to
minimum standards and best
practices; and the needs of justice delivery
institutions.
Zimbabwe Independent reporter Bernard Mpofu on Wednesday caught up
with
Deputy Justice minister Jessie Majome at her Harare office to examine
the
state of the country's judiciary and the penal system, among other
things.
Below is the interview.
Mpofu: What happened to the judicial
reforms government embarked on a
few years ago?
Majome:
Several reforms were made through the Judicial Service Act a
few years ago.
The Act would see the streamlining of the judicial system in
effecting a
prudent separation of powers between arms of government. The Act
has not
been operationalised to date and that has become one of our key
results
areas in this inclusive government.
Once the Act is implemented
we would see the magistracy being moved
from the Public Service Commission
to the Judicial Service Commission.
Mpofu: Why has it taken so
long to operationalise the Act?
Majome: Currently we are
assessing the cost of implementing this Act.
This is an old Act that was
passed when we were still dealing with the
Zimbabwean dollar, but that has
since changed.
Mpofu: There was also the Attorney-General
(AG)'s Bill. What became of
it and what reforms we envisaged in the draft
law?
Majome: The AG's Bill reached a second reading in
Parliament and then
lapsed. Its general objective was similar to the
Judicial Service Act in
that it intended to achieve human resources and
financial reforms.
Mpofu: A lot of questions have been asked on
the autonomy of the AG's
office from political manipulation given that the
office falls under the
Justice ministry and also that the AG sits in both
cabinet and parliament.
What is your take on that?
Majome:
The configuration of the role and functions of the Attorney-
General in this
country is one of the most primitive compared to other
jurisdictions.
Sometimes there is a conflict between the public duty of the
office and
serving the national interest. It can be difficult to strike a
balance
between being the government's chief legal advisor and being a
political
appointee. The prosecuting function of that office brings that
conflict to
the fore.
The AG sits in cabinet and how easy would it be for
the same AG to
prosecute a fellow member of cabinet? I think the AG would be
compromised.
In countries like Uganda and Canada, there is no AG, but in our
case what
difference is there between the AG and the minister in terms of
their
administrative structures?
What we are seeing in
Zimbabwe is a demonstration of failure to
adequately configure the AG's
office in relation to other legal and
political functions in light of the
public interest.
In other jurisdictions they recognised this
conflict and create an
office of an independent prosecuting authority. This
was not captured in the
lapsed Bill.
Notwithstanding this,
our Constitution (Section 76 subsection 7 and 8)
attempts to manage that
conflict by stating that the AG's prosecuting
function shall be independent
from the direction and control of any other
person and
authority.
Mpofu: We understand that six inmates died last week
at Mutimurefu
Prison in Masvingo. Can you confirm this and what is
government doing to
address the dire situation in prisons throughout the
country?
Majome: That has not been brought to my attention but
we have high
rate of deaths in prisons. It is so high that three weeks ago
we had 970. We
are certainly above 1 000 and that is
unacceptable.
Government is seeking assistance because we have been
failing to feed
and clothe inmates. The International Committee of the Red
Cross has offered
assistance to our major prisons - Chikurubi, Harare
Central and Khami
prisons.
Unfortunately we expect the
death rate to go up because of a drop in
temperatures because of shortages
of clothing and blankets.
Mpofu: How many people are
incarcerated at the moment?
Majome: Presently we have 14 500
inmates across the country. Our
capacity is 17 000 so we are not overcrowded
in the mathematical sense but
from a qualitative sense we are because the
needs of inmates are not being
adequately looked at.
Mpofu:
Turning to farming, the Commercial Farmers Union accuses the AG's
office of
"fast-tracking" the prosecutions of white farmers who are still on
the land
despite winning a case at the Sadc Tribunal. What do you say to
this?
Majome: The AG has the prerogative on whom to
prosecute and the
ministry has no control over this prosecuting
function.
Mpofu: We understand that a report by police
Commissioner-General
Augustine Chihuri to co-Home Affairs minister Giles
Mutsekwa outlining the
arrest of Independent senior journalists has been
copied to your office. Can
you confirm this and give us details of the
report?
Majome: It has not been brought to my office as I
speak.
Mpofu: What is your position on the handing out of
different perks to
the judiciary by the Reserve Bank instead of the Judicial
Service
Commission?
Majome: This demonstrates the necessity
of ensuring the independence
of the judiciary through establishing and
maintaining an institution that is
adequately resourced and ultimately
independent. That is why we would want
to operationalise the Judicial
Service Act.
Mpofu: What do you say to the current state of our
courts which seem
to be lacking proper maintenance?
Majome:
Our courts as institutions in the justice delivery system are
not presently
in a state that allows them to administer law and justice. We
have
difficulties in accessing basic equipment and supplies. Recording
equipment
for example is in a dysfunctional state and we have also been
losing a lot
of skilled labour. The state of courts does not invite
confidence in the
justice system.
The working conditions of officers not spared
from the present failure
by government to provide resources for the
ministry. This has impact on
morale and performance of these
workers.
We need to take drastic action to unclog backlogs that
result from
challenges in the justice system.
Mpofu: On a
scale of one to 10, how do you rate the ministry's
achievements since the
formation of the inclusive government?
Majome: We have a lot of
work to do. I'm not sure whether we are at
three. Most of our targets in the
100-day plan require capital and at the
moment funds coming from the
Ministry of Finance are not adequate.
http://www.thezimbabweindependent.com
| Thursday, 04 June 2009 21:08 |
|
THE Common Market for Eastern and Southern Africa (Comesa) is holding its Policy Organs meetings and the 13th Summit of Heads of State and Government in Victoria Falls, on June 8 under the theme “Consolidating Regional Economic Integration through Value Addition, Trade and Food Security.” From June 2-4 the Council of Ministers deliberated on a number of issues affecting the Comesa region, including the current negotiations with the European Union on concluding Economic Partnership Agreements (EPAs).
Trade liberalisation has so far discouraged intra-regional trade in Africa as the reduction of tariffs, which reduce the preference margins given to other African countries, reduce the incentives for intra-regional trade.
|
http://www.thezimbabweindependent.com
Thursday, 04 June 2009 17:57
LEADERS of Africa's largest regional trade
bloc, the Common Market for
Eastern and Southern Africa (Comesa), have been
meeting at Victoria Falls
since May 28, to prepare for the launch of a
Customs Union (CU).
Comesa, which has 19 member states, has been
working on having a CU as
a follow-up to a Free Trade Area (FTA) launched in
2000.
A total of 14 countries have been participating in the FTA,
which,
according to the bloc, has seen intra-regional trade levels growing
from
US$3 million at the time of the launch, to over US$9 million as at
December
2008.
This trade is mainly in goods produced in
FTA participating countries
and doesn't attract duty among members who are
signed up.
FTA involves elimination of trade barriers between
member states only
and is suitable for complementary
structures.
The other stage of economic integration will be a
common market which
aims to facilitate the movement of factors of production
such as capital,
labour, goods and services between the
members.
Questions have however been raised in Zimbabwe on
whether the local
industry was ready for a free trade area? How will the
country's economic
performance affect the CU and FTA? Will the country's
economy improve under
the new developments? What problems is the Customs
Union likely to face? Is
the bloc ready for a single
currency?
Economic analyst Eric Bloch said how Zimbabwe
benefits would depend on
how the CU constitutive legislation was
drafted.
"Will it become effective immediately, or on a future
date and, if the
latter, when? Will it be introduced on a phased basis, or
applicable to all
goods from inception? What will be the formulae for
determining country of
origin?" said Bloch.
However,
pending greater detail of the CU becoming available, Bloch
said: "In
principle, provided that the CU is effectively and realistically
structured,
it will be beneficial for the member states of Comesa, and will
progressively diminish the economic disparities between some of the
countries.
"Zimbabwe's industry will benefit from the CU to
a very considerable
degree, and very rapidly, subject to it being able to
access adequate
recapitalisation, and government timeously procuring the
rehabilitation of
parastatals infrastructures."
ZB
Financial Holdings economist Andrew Chirewo said the bloc appeared
not ready
for a FTA given that the DRC, Ethiopia, Seychelles, Swaziland and
Uganda
still needed to confirm membership as they have not been
participating in
the FTA.
"Moreover, intra-Comesa trade has generally been very
low, averaging
just 5% of that in 2007. However, FTAs and Customs Unions are
very much
workable when there is economic stability within member countries,
an
example being the Southern African Customs Union (Sacu) agreement between
South Africa, Botswana, Lesotho, Namibia and Swaziland," Chirewo
said.
"As such, the successful implementation of the Global
Political
Agreement in Zimbabwe, coupled with a return to stability in the
DRC and
Madagascar, should add some impetus for the sustainability of a
Customs
Union within Comesa," he added.
Chirewo said the
Customs Union could offer an opportunity for the
resuscitation and
recapitalisation of some companies via relatively cheaper
access to raw
materials and capital goods.
"In fact, local industries can, to
some extent, benefit from the
Comesa FTA/CU through elimination of uneven
competition especially those
local companies with low capacity utilisation
levels," said Chirewo.
"In addition, some benefits may be
derived from joint agriculture,
mining and manufacturing ventures, given the
bloc's intention to uplift
value addition within member states, whilst other
benefits could be derived
from the establishment of a regional payments
system as well as enhanced
investment guarantees through bloc trade pacts,"
Chirewo said.
However, much of Zimbabwe's trade is conducted
with South Africa,
which is not a Comesa member.
"An FTA/CU within
the Sadc, where most trade is conducted, would be
more advantageous to the
local industry than in the Comesa," said Chirewo.
Coronation
Financial Services financial analyst Lance Mambondiani said
intra-regional
trade would be an essential vehicle for the promotion of
diversification and
establishment of linkages between production units in
Zimbabwe and different
African countries.
He said the establishment of a free trade
zone in Zimbabwe may mean
the country will not be subjected to half-backed
and ill-thought out
economic policies such as price controls. Economist
Brains Muchemwa said
there was never a right time when every member country
would be prepared but
that some countries needed fast reforms for the common
good.
"After years of strangulation, the local industry is not
in the best
shape to compete, but will gain more largely from cross-border
financing
opportunities and fairer exposure to markets with higher spending
power as
Zimbabwe has the lowest GDP per capita in the bloc at less than
$380 per
capita," said Muchemwa.
On the need for a single
currency, Muchemwa said: "Some countries such
as Zimbabwe still lack fiscal
discipline by a huge margin, whilst civil wars
and poor governance stalk 40%
of the member states. The cocktail of these
issues work hard against smooth
implementation of a single currency," he
said.
Bloch said
in the long-term, a common currency would probably be
functional, but can
only be introduced when intra-member economic
disparities have been
minimised.
"Zimbabwe can benefit from Comesa by virtue of
considerable
enhancement of exports. These include access to certain primary
products
required by the manufacturing sector and collaboration on energy
generation,
water procurement among other things," Bloch
said.
Economist David Mupamhadzi told the Zimbabwe Independent
on Tuesday
that the issue of timing for the Customs Union was critical but
that given
the economic differences of member countries there would never be
a right
time when everyone would be ready.
"The (economic)
disparities cannot delay the launch of a Customs
Union. As long as there is
commitment from the member countries to work
towards clearing the
outstanding hurdles, then some of some of these hurdles
can be cleared after
the launch," said Mupamhadzi.
Mupamhadzi said local industry
was "clearly not yet ready for a free
trade zone".
"In fact
given the magnitude of problems that our industry is facing,
there are no
immediate gains that the country will benefit from this
process. The economy
is still fragile and cannot compete with the region,"
he
said.
Mupamhadzi said hyperinflation had virtually destroyed
the Zimbabwe
economy, and its competitiveness.
"For Zimbabwe this
could be another lost opportunity, as the country
does not have much to
bring to the table. However, for other regional
economies they will
definitely capitalise on this and try to maximise on the
various
opportunities that they can get from Zimbabwe," Mupamhadzi
said.
Mupamhadzi said given the sorry state of the economy,
Zimbabwe might
want to seek temporary exemptions from the full application
of specified
provisions of the treaty.
"However, the
country should be given tight deadlines to put its house
in order," he
said.
BY PAUL NYAKAZEYA
http://www.thezimbabweindependent.com
Thursday, 04 June
2009 20:28
THE Minister of Information Communication Technology, Nelson
Chamisa,
yesterday ordered TelOne to stop disconnecting fixed telephone
lines for
clients who have failed to pay bills he said were
exorbitant.
Chamisa said he concurred with complaints made that the
charges were
beyond the reach of many and said his ministry had written to
the Postal and
Telecommunications Regulatory Authority (Potraz) advising it
to revise
downwards the telephone charges.
"We have told TelOne
not to disconnect telephones and they have to
comply," Chamisa told
journalists in the capital. "We have also advised
Potraz of the latest
development."
He said his ministry was working with Potraz and
TelOne to
"investigate the exorbitant bills and the billing
trend".
"Potraz is currently reviewing the tariffs. By July 1
we would have
announced new tariffs, which would definitely be lower. All
tariffs should
be at par with what the region is charging," Chamisa
said.
He said the country's telecommunications tariffs were the
highest in
the region.
Most fixed phone clients have expressed
dismay on the charges, which
in some cases are way beyond their
salaries.
TelOne started disconnecting customers last month
after clients
declined to settle bills arguing that the company was charging
unreasonably
high tariffs that were based on estimates.
The
clients also maintained that the authority was billing them in
foreign
currency backdated to January, whereas TelOne was only granted
permission to
trade in foreign currency on February 2 by the Reserve Bank.
According to TelOne, average local telephone usage per month at a
household
level is 200 units, which translates to 600 minutes.
Assuming
one was calling a cellphone at the local rate of US$0,19 a
minute, the
average bill should be US$96. Calling another landline phone
costs
US$0,07.
Clients are however said to be receiving bills that
are between US$300
and US$400.
A Senior Bulawayo High Court
judge, Justice Maphios Cheda, last Friday
granted a provisional order to 27
private companies that had approached the
court arguing that tariffs charged
by the parastatal were unrealistic and
should have their phones
reconnected.
Earlier this week, TelOne acting public relations
executive Collin
Welbesi insisted that his company was
authorised
to charge in foreign currency in January.
He said the January
and February bills were reduced by 30% in an
effort to cushion
customers.
"The bills that our customers are receiving are not
estimated bills
but are based on actual usage," Welbesi said in a statement.
"Acting in the
public interest and faced with the need to strike a balance
between
affordability of service and our viability, the regulator reduced
our tariff
from US$0,10 a minute to US$0,07 a minute with effect from March
15 2009.
However, TelOne backdated this tariff reduction to March 1 2009 for
the
benefit of our customers."
Meanwhile, Chamisa said the
term of the Zimpost board had expired and
his ministry was working on
appointing a new one soon. -- Staff Writer.
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
20:28
FINANCE minister Tendai Biti will next week on Friday address the
World Economic Forum in South Africa focusing on Zimbabwe's reconstruction
under the inclusive government.
The World Economic Forum will
provide a big opportunity for Biti to
explain the country's economic
recovery plan which is contained in Short
Term Emergency Recovery Programme
(Sterp) and appeal for funding and
technical assistance needed to rebuild
the country's economy.
Biti will address the meeting on Friday
morning. He will be part of a
panel which includes Deputy South African
president Kgalema Motlanthe and
Kingdom Meikles Africa group chief executive
officer Nigel Chanakira.
The moderator of the panel will be
Group Digital Business Manager and
TV Host, Royal Media Services, Kenyan
Julie Gichuru.
He will be expected to address the following
questions: How are
Zimbabwean and African leaders addressing the crisis in
the country? What is
the roadmap for reconstructing what was once one of
Africa's success
stories? Should the international community lift sanctions
and provide
development assistance to Zimbabwe?
Deputy
Prime minister Arthur Mutambara is also expected to address the
same forum
on Wednesday next week on the topic "Investing in Zimbabwe".
In an interview this week, Biti said he will be take the opportunity
to
explain the depth of the Zimbabwean crisis and the amount of
reconstruction
work that needs to be done.
"As a matter of fact I would like
to make the world and regional
leaders appreciate and understand the
situation in Zimbabwe. The extent of
decline and failure of the economy is
so serious that it was tantamount to
an economy that had just emerged from
war," said Biti.
"We need a comprehensive stabilisation
programme in the mould of a
mini Marshal Plan instead of just getting
humanitarian assistance which all
goes in to consumption. We need huge
reconstruction and transformation
assistance," Biti said.
Biti said a lot of work needed to be done before Zimbabwe start
bottoming
out of the doldrums and reach the stage it was at before 2000.
He said the consequences of failing to revive the economy would be too
ghastly to contemplate.
"The inclusive government is a very
fragile experiment. It can only
work and succeed if there is economic
recovery and delivery. We need to
ensure that it succeeds," he
said.
Biti said for the inclusive government to succeed there
will be need
to attend to outstanding issues and reforms.
"The outstanding issues must be addressed with urgency and reforms
introduced. We need to stop the arrest of journalists, lawyers, judiciary
officers, political activists and human rights defenders. We also need to
start implementing the global political agreement in full," Biti
said.
"We need to see more newspapers, radio and television
stations in
Zimbabwe. This is the only way we can succeed and we will
explain all these
issue to the world in Cape Town next week," said
Biti.
BY PAUL NYAKAZEYA
http://www.thezimbabweindependent.com
Thursday, 04 June 2009 20:19
LONZIM Plc is planning to set up a passenger airline to service
Zimbabwe and
regional routes in a move that could give Air Zimbabwe serious
competition.
The national airline has been experiencing
operational and financial
problems.
LonZim director and chief
executive officer Geoffrey White said
funding for the project, which will
cater for both passenger and freight
operations, had been
allocated.
"LonZim has allocated funding to establish a
franchise in Zimbabwe of
Lonrho's regional aviation company, Fly540, and is
working to obtain the
necessary flying permissions and Air Operators
Certificate to start a
domestic and regional focused airline for both
passenger and freight
operations," said White when announcing the interim
financial results for
the period ending February 28.
However, he would not disclose the amount the project would cost and
the
regional routes that they intend to fly.
The inclusive
government has indicated its desire to liberalise air
transport policies in
a bid to attract foreign airlines under the Open Skies
Policy enunciated in
the Short Term Emergency Recovery Programme.
Only seven
airlines are currently serving the country out of 45 that
existed in
1996.
Reputable airlines like British Airways, Qantas, Virgin
and Lufthansa
have since stopped flying directly into
Zimbabwe.
Airlines that have left the country include Austrian
airlines,
Swissair, Air India, Air France, Air Portugal, Egyptian Airline,
Royal Swazi
airline, Air Seychelles, Air Tanzania, Ghana Airways, Air Uganda
and Air
Cameroon.
"Recently we have seen some very positive
progress made in Zimbabwe as
international support for the country grows. We
are positive that the
investment potential in Zimbabwe remains strong and
that the country has a
very bright future as it looks to re-establish its
presence as one of the
major economies on the African continent," he
noted.
Meanwhile, White said LonZim will continue to focus on
commercial
opportunities in Zimbabwe and the Beira
corridor.
He said the company will continue to invest in
industries that the
board believes will show strong and speedy recovery when
Zimbabwe begins
economic growth.
White said the focus for
each company has been to retain quality staff
and the capabilities necessary
to grow and gain market share as and when
Zimbabwe
recovers.
"Each company is well positioned to do so, and with
LonZim backing,
the portfolio of investments is strategically placed to be
able to benefit
from the recovery," White said.
BY NQOBILE
BHEBHE
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
20:19
SOUTH AFRICAN businessman Cyril Ramaphosa's Shanduka Group has
joined
the bandwagon of investors jockeying for business interests in
Zimbabwe,
businessdigest has established.
Ramaphosa's group is
said to have held talks with Econet Wireless to
acquire the company's
shareholding in Mutare Bottling Company, an investment
the mobile group
considers a non-core asset.
The Shanduka group, which already has
interests in bottling and
beverage sectors in the region, is said to have
conducted a due diligence
examination of Mutare Bottling and was keen on
snapping up the business.
But Delta Corporation has been linked
to the bottling asset in the
past few weeks after Shanduka appeared on the
scene.
While Delta is keen on having Mutare bottling under its
portfolio,
analysts say the beverage group has a bargaining chip in the form
of its
non-core Ariston investment, a cast away asset Econet is seemingly
interested in.
Analysts feel the Shanduka bid could suffer
after Delta and Econet
began talks.
Other sources said
Delta was no longer interested in a share swap deal
proposed by Econet
Wireless opting for cash deal than a scrip one.
But Econet is
less likely to pay cash for Ariston. Econet acquired
Mutare bottling last
year.
The Shanduka Group is a leading black-owned and managed
Investment
Company established in November 2000.
Their
investment portfolio comprises Resources, Financial Services,
Property,
Energy, Beverages and Industrial & General.
Millennium
Consolidated Investments (MCI) is the exclusive Ramaphosa
investment
vehicle, which was incorporated in March 2001. He is the chairman
of MCI as
well as the single largest shareholder in the company.
Ramaphosa is a member of the advisory boards of the Sanlam Development
Fund
and the AIG Africa Infrastructure Fund, the Deputy Chairman of Rebserve
Holdings Limited, Chairman of Johnnic Holdings Limited and a board member of
SAB plc, First Rand Limited and SASRIA.
BY CHRIS
MURONZI
http://www.thezimbabweindependent.com
Thursday, 04
June 2009 20:11
ZIMBABWE'S gold output fell by 49% last year owing to
an operating
environment the Chamber of Mines described as "dismal and
gloomy".
Zimbabwe produced 3 576 tonnes of bullion last year
compared to 7 018
tonnes in the prior year, the chamber said.
"During the year 3 576 tonnes was produced compared to 7 018 tonnes
reported
in 2007, a decline of 49%,"according to the Chamber of Mines annual
report.
David Murangari, Chamber of Mines president,
attributed the fall in
gold production to a difficult operating environment
last year.
"The performance of the Zimbabwean mining industry
in 2008 is best
described as dismal and gloomy," Murangari
added.
Zimbabwe's gold mining industry has been hard hit by the
country's
economic meltdown as more mines stopped
operations.
Speaking at the Chamber of Mines Annual General
Meeting (AGM) held
last week in the capital, a departure from the
traditional Victoria Falls
venue, Prime Minister Morgan Tsvangirai said the
mining sector presented the
country with a ready opportunity to attract
significant investment.
"Government has a window of opportunity
to prepare a conducive policy
environment by mid 2010. that could see
Zimbabwe's mineral sector attracting
between six billion and 16 billion in
exploration and mine development
investment during 2011-2018 period," he
said.
According to Murangari the majority of mines need to be
recapitalised.
"Most mines operated under extremely difficult
macro-economic
conditions for the first nine months of the year. Most
importantly, there is
dire need for recapitalisation of the industry... the
current world
recession was something that we in Zimbabwe had not
anticipated," said
Murangari.
Gold earnings in the first
half of the year also declined to US$62
million compared to US$94 million
earned the previous year.
Although gold sector earnings have
declined, platinum production
increased by 8.5% in 2008 compared to
2007.
Annual platinum output increased from 5 085,74kg in 2007
to 5 495,10kg
in last year.
Gold miners are still to be
paid US$30 million for gold deliveries
made to the central bank last
year.
BY CHRIS MURONZI
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
20:07
WHEN Rainbow Tourism Group (RTG) majority shareholder Nicholas
Van
Hoogstraten's dispute with the hospitality group's directors' started in
2005, it was evident that at least one party would end up a
loser.
Last week, only one director out of the eight that Van
Hoogstraten
(64) wanted to leave, was voted off the board.
For
some RTG board members and shareholders who questioned Van
Hoogstraten's
corporate politics, "reason prevailed over madness" at the
group's AGM last
week. But Van Hoogstraten left the meeting with the typical
'I-will-be-back
look' and his guns are still loaded and can shoot anytime.
But
what is the story behind this dispute?
RTG, a former 100%
government owned company, has gone through major
changes in shareholding
over the past decade, beginning with privatisation
and listing on the
Zimbabwe Stock Exchange in November 1999.
At that stage the
major shareholders to emerge were Accor Afrique, a
French hospitality group
(35%); the Government of Zimbabwe through the
Ministry of Mines, Environment
and Tourism (30%); the National Investment
Trust (10%); RTG Employee Share
Ownership Scheme (5%); NSSA (18%) and the
public (18%).
In
2002, in an effort to raise finance for the procurement of fuel
from Libya,
government sold 14% of its stake in RTG to the Libya Arab
Investment Company
(LAAICO), reducing its shareholding to 16%.
In 2004, the RTG
found itself saddled with a heavy foreign currency
debt and bleak prospects
of short-term recovery due to the prevailing
business
environment.
It went to the shareholders to raise funds through
a rights issue. At
this point two significant shareholders, Accor (35%) and
LAAICO (14%) were
not in a position to support the rights
issue.
Government got NSSA to support the rights issue through
a warehousing
arrangement.
The rights issue brought in a
new dominant shareholder, Van
Hoogstraten, who since then has been in
dispute with the RTG board demanding
control of more than the 34% he managed
to acquire of the RTG shareholding.
The
dispute
As RTG searched in its shareholder register for
shareholders who could
provide it with a confirmation in support of its
rights issue as part of the
underwriting requirement by the bankers, the
name Messina Investments
cropped up.
The owner/director of
Messina Investments was Van Hoogstraten, with
extensive business interests
in Zimbabwe.
He was approached to give his written support for
the rights issue
whereupon he insisted that he would not do free work for
the banks. He said
he would support the rights issue to the tune of $25
billion out of the $80
billion required.
However, he could
only give his support through an underwriting
agreement where he could at
least earn a fee for his services.
When the $25 billion was
still not enough for the RTG bankers (ZB
Bank) to grant the global
underwriting, Van Hoogstraten was persuaded to
increase his underwriting to
$40 billion.
The new agreement was then ceded to CBZ Bank who
had by that time
agreed to be co-underwriters.
The rights issue
circular then had two underwriters, namely CBZ
Holdings (which was backed by
the Messina Investments agreement) and ZB
Bank. The two banks shared the
underwriting in equal proportions.
At the close of the rights
issue, the shares not taken up were split
equally between CBZ Holdings for
onward submission to Messina Investments or
any other company under Van
Hoogstraten, and Zimbank which was then taken up
by Terra Partners through a
Barclays Bank nominee vehicle.
This resulted in the following
shareholdings structure - Messina and
Other Companies (Banhams, Edwards
Nominees) (34%), Terra Partners (a
UK-based investment fund) (28%), NSSA
(12%), Accor Afrique - South Africa
(10%), Ministry of Mines, Environment
and Tourism (4%), LAAICO (4%), RTG
Employee Share Ownership Scheme (2%) and
the public (6%).
According to documents to hand it was the
split of the rights issue
shares that angered Van
Hoogstraten.
He alleged massive fraud by RTG directors and
demanded that the board
step down en masse.
Since the
underwriting agreement entitled both parties to arbitration
in the event of
a dispute, the matter went for arbitration in 2006 before
retired Justice
McNally.
The arbitration ruled in favour of the RTG
board.
In 2007 Van Hoogstraten attended the RTG AGM and
demanded a poll vote
of all the resolutions including the approval of
accounts, appointment of
directors and auditors.
Van
Hoogstraten lost on this issue with 60% votes against his 34%.
In 2008, the RTG issued the AGM notice with a special resolution for
approval of a share option scheme. Van Hoogstraten was against this motion
and wrote to express his disapproval and threatened to sue the company if
the scheme was implemented.
The shareholders present, voted
unanimously in favour of the scheme.
However, management has not implemented
the scheme as it was hoped that Van
Hoogstraten could be positively engaged
on the issue.
In March Van Hoogstraten wrote to the company
demanding a resolution
for the removal of all RTG directors at the AGM which
was held last week.
Banhams Investments' reason for requiring
the removal of the entire
RTG board was that they had "little or no
knowledge of business or in
particular hospitality
business.
He had proposed that Grace Muradzikwa be removed as
non -executive
chairperson of RTG. He is also proposing that seven directors
be removed.
The seven are Paschal Changunda (group finance director), Canaan
Dube,
Charmaine Rose Daniels, Godfrey Manhambara, Yarden Mariuma, Elliot
Nyoni and
Chipo Mtasa, the chief executive officer.
Going
forward
Economic analysts said more drama was expected between
Van Hoogstraten
and the RTG board. Van Hoogstraten has enough shares to
appoint about three
directors, given that AFRE appointed two with half the
number of shares he
has.
Indications are that he will
appoint those directors and one of them
may be appointed chairman since
there is no board chairman at the moment
following the resignation of Grace
Muradzikwa.
Muradzikwa who is rumored to be heading for Uganda
to head
NicozDiamond's subsidiary, did not offer her self for
re-election.
In the event that there are shares on offer, Van
Hoogstraten is likely
to buy them and become a major shareholder with over
50%. Some shareholders
and investors will therefore be held hostage over
something they have no
control over.
Against such a
background, it would be important for the directors and
Van Hoogstraten to
find a common goal to end the dispute.
BY PAUL NYAKAZEYA
http://www.thezimbabweindependent.com
Thursday, 04 June
2009 20:07
AS the South African rand continues to firm against the
American
dollar most shops in Harare are now using the exchange rates
prevailing in
South Africa for trading.
When the country
adopted multiple currencies in January, the exchange
rate was
US$1:R10.
On Wednesday morning the rand was trading at 8,07 to the
US dollar.
A survey within the central business district showed
that most retails
shops are now displaying the exchange rates prevailing at
a particular time,
but there are a lot of disparities as to which exchange
to use each day.
Some shops use an exchange rate of 9,5or 7,9
while others are still
using an exchange rate of 1:10.
Economists this week urged businesses to monitor the exchange rates in
South
Africa daily to avoid-short changing customers.
Said economic
analyst Eric Bloch: "The international exchange rates
prevailing at a given
time should be used in all transactions. When the 1:10
rate was used the
rand was slightly weaker but now it has gained against the
dollar."
The firming of the rand has been attributed to
increases in the prices
of gold and platinum on the international on
market.
On Wednesday gold was trading at US$985 per
ounce.
Bloch added that the anticipated cash windfall during
the 2010 World
Cup was also behind the recent firming of the rand. South
African will also
be hosting the Confederation Cup from June 14 to
28.
Also the global economic meltdown is affecting the strength
of the
dollar.
Economists Witness Chinyama told
businessdigest that initially
businesspeople in Harare where not
"particular" about the exchange rates.
"Not much thought was
given to the exchange rates prevailing in South
Africa when we adopted the
rand as currency of reference. But that is now
changing as the rand is
gaining against the dollar," said Chinyama.
"The fact that the
dollar is popular and readily available it made the
1:10 rate sustainable.
But people in the southern parts of the country have
noticed that they could
make gains by using the official rates in South
Africa, hence the gradual
change in Harare."
Illegal foreign currency dealers in Bulawayo
are flocking to Harare to
"mop up" the few remaining rand in
Harare.
South Africa's RMB analyst John Cairns was recently
quoted in his
foreign currency report saying that optimism over the global
economy was
surging, risk-taking continues to rise and fears over a return
of inflation
was leading to an ongoing slide in the US
dollar.
"This all suggests downside for US dollar against the
south African
rand, but importers have reacted strongly to the governor's
verbal
intervention on Monday and this surge of orders is clearly keeping
the rand
from following its compatriot currencies
stronger."
This week Minister of Finance Tendai Biti said a
decision to
officially use the rand would be made by the end of the
year.
"One of the options is to join the rand monetary union.
We will also
consider continuing with the (current) regime of multiple
currencies or
bring back the Zimbabwean dollar and re-denominate it either
with the rand
or the US dollar," he said.
Parallel market
foreign currency dealers however have resurfaced as
banks are struggling
with low deposits. The street dealers are moving back
to reclaim a market
they had dominated since the local currency lost value
against major trading
currencies.
Even when the foreign currency supply was constant
there is still a
market for "cross selling" different
currencies.
Banks are said to be offering lower rates for the
US dollar to rand
conversions while the parallel market was offering better
rates.
BY NQOBILE BHEBHE
http://www.thezimbabweindependent.com
Thursday, 04 June 2009 20:04
COUNTRIES
in the Comesa Customs Union will not charge tariffs on
capital goods and raw
materials imported from outside the bloc.
Comesa has defined
capital goods as those used to produce other goods
while a raw material
applies to products that have not undergone any form of
processing.
Semi-processed goods and finished products will
attract duty of 10 and
25% to create a level playing field for manufacturers
and producers in the
region.
An intermediate product is one
requiring further processing before it
can be used while a finished product
does not need any further processing.
According to a Comesa document, member
countries had adopted a Common
External Tariff for goods imported from
outside the 19-member trade bloc.
Trade on goods produced in
member countries is duty-free under the
Free Trade Area set up in
2000.
The newsletter said the FTA, while beneficial to members, did not
provide a level playing field in agricultural and manufacturing
sectors.
"It is not possible to foster and promote regional
production of goods
in sectors where producers outside the region are more
competitive for a
variety of reasons. Nearly all economies in Comesa are
small with nascent
and fairly fragile industries that require
nurturing."
The newsletter said the customs union would protect
upcoming companies
from competition from bigger and older
industries.
It said the union would also facilitate increased
regional
cross-border trade in goods and services.
"Companies will find it easier to establish and operate in other
Comesa
countries; companies will easily list on multiple stock exchanges
across
Comesa, goods will be traded easily and more confidently."
Comesa believes that the Customs Union will also go some way in
reducing
poverty in member countries as enhanced production to meet market
demand
will create wealth directly and indirectly.
Trade between
Comesa member countries has risen from US$3 billion in
2000 before the FTA
was formed to more than US$15 billion last year.
The trading
bloc has a population of 400 million, creating an enormous
opportunities for
businesses in the member countries. -- comesa.int
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
20:03
PRIME Minister Morgan Tsvangirai says solidarity and unity of
purpose
will help the region realise meaningful benefits from several
arrangements
at the international level that have so far eluded the
citizens.
He has therefore called on leaders to take firm decisions
regarding
the stalled WTO negotiations and provide leadership and direction
for the
remainder of the Economic Partnership Agreement (EPA)
negotiations.
He added that trade preferences alone are inadequate to
address the
development challenges that the region face. EPAs must,
therefore, offer
more than just trade preferences.
"The
EPAs must induce increased economic activity and sustainable
development for
the region, the Prime Minister said. We cannot continue to
be sources of raw
materials and commodities for industrial development in
the north. We cannot
continue to produce what we do not consume and consume
what we do not
produce,"
He revealed that the top priority for Zimbabwe will
be the
opportunities presented in the Comesa region because of the
favourable
trading terms and conditions developed by the organisation over
the past
decade.
Specifically, he said Zimbabwe looks forward
to playing its part
within the Comesa region. Currently, Zimbabwe is only
utilising less than
20% of its installed national capacity in all sectors
and as it seeks to
engineer its recovery and to restore utilisation of its
productive capacity,
the country will be looking for opportunities elsewhere
in the region.
Tsvangirai was further gratified to note that
non tariff barriers to
trade, which have the capacity to threaten the smooth
flow of goods across
the borders, are being reported and negotiated, through
an NTB Monitoring
and Reporting System that also covers Sadc and EAC. -
Comesa.int
http://www.thezimbabweindependent.com
Thursday, 04
June 2009 19:59
FINANCE Minister Tendai Biti last week ordered the
Zimbabwe Stock
Exchange (ZSE) to seek written approval from his ministry for
all trade
involving government -- owned shares.
This comes
after the ZSE issued a circular to the country's
stockbrokers and dealers to
seek permission from his ministry for any trade
in government owned shares
in line with Section 18 of the Audit and
Exchequer Act.
Analysts view the directive as a bid to control the Reserve Bank of
Zimbabwe
which had over the years assumed control of the sale and
acquisition of
stocks on behalf of government at the height of the country's
economic
crisis.
Sources say Biti was annoyed by parcels of government
shares sold
reportedly at the behest of the central bank since February to
local and
foreign investors arguing that the stocks the bank sold had been
non core.
Biti is also said to have argued that the central
bank neither had the
authority nor the permission of government when the
transactions went
through.
Biti cited instances where
shares owned by the government went under
the hammer on the ZSE without the
approval of his ministry and said the
conduct was unlawful.
Speculation swirled on the market last month after huge parcels of
Dairibord
Zimbabwe Limited Holdings (DZL) and AICO stock were offloaded on
the market
amid rumours that government was behind the sell-off. A
stockbroker
confirmed receipt of a circular this week and described volumes
of DZL
Holdings and AICO shares sold since February as "huge" but could not
confirm
if these had been government shares.
ZSE chief Emmanuel
Munyukwi could not be reached for comment at the
time of going to print
while Biti according to reports denied involvement.
Analysts
believe Biti, who has publicly clashed with Reserve Bank of
Zimbabwe
governor Gideon Gono over his role in printing money to allegedly
keep the
economy alive through provision of concessionary funding to
government
institutions and a handful of private companies, could be using
the law to
keep his rival in check.
Biti is said to be after Gono's scalp
but this could prove an uphill
task after President Robert Mugabe and
service chiefs last week vouched for
the central bank head as an honest and
patriotic servant of the nation.
BY CHRIS MURONZI
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
20:50
THE European Union should not bar Zimbabwean government officials
from
travelling within its territory regardless of political affiliation in
the
spirit of the inclusive government, Minister of State Gorden Moyo was
reported in the Sunday Mail as saying last weekend.
This was in
reference to the intention of Mines minister Obert Mpofu
to accompany Prime
Minister Morgan Tsvangirai to a mining conference in the
UK. Moyo called for
"less restrictive measures" from EU member states.
Meaning lift
sanctions.
Later in the same story the Sunday Mail said "the EU
targeted measures
were imposed since 2002 on President Mugabe and senior
members of his
government in response to Harare's implementation of the land
reform
programme".
Among those targeted are six journalists from
the state media, we were
told.
These are no doubt the same
journalists who are misleading readers
into believing sanctions were a
response to land reform. This is a
convenient myth designed to portray an
heroic Zanu PF as victims of Western
penalties for restoring land to the
people.
In fact EU sanctions were imposed in 2002 in response to the
expulsion
from Zimbabwe of Pierre Schori who headed the EU's election
monitoring
mission. The measures had nothing to do with land and everything
to do with
political violence and electoral manipulation.
This is
all known to state journalists but they continue to repeat the
lie that EU
sanctions stemmed from land reform. And then they wonder why
people like
Moyo are having difficulty getting the sanctions lifted.
On Tuesday
the Herald ran a front-page story claiming British
pensioners in Zimbabwe
were destitute because of "hyperinflation spawned by
illegal
sanctions".
Exactly how the British were responsible for printing money
-- the
root cause of inflation -- and then spending it hand over fist was
not
explained in this latest bout of delusional journalism.
Nor did
the Herald tell the paper's readers that Zimpapers pensioners
have not been
paid a cent since dollarisation. But the paper did manage to
reproduce Peta
Thornycroft's article in the Telegraph on the plight of
pensioners word for
word. None of them ascribed their woes to sanctions.
That was entirely
Herald fiction.
And we wonder how many readers know that Arthur-Jim
Patsanza died a
pauper after all those years of loyalty to
Zimpapers.
Meanwhile, while Moyo is pleading with Britain to let
Mpofu in,
Tafataona Mahoso is occupying acres of space in the same edition
of the
Sunday Mail to denounce the inclusive government. He speaks for the
reactionary clique in government that has been prominent of late attempting
to block reform measures by the new government including media
reform.
They have been emerging from the woodwork in the armed forces,
the AG's
office and the civil service to slap down MDC spokesmen and pose as
the
authentic voice of the Zimbabwe government.
These same people
refused to allow Tsvangirai's remarks, made at a
press conference on
resolving outstanding issues in the GPA, to reach the
public until three
days later when a sanitised version appeared.
The EU would in the
circumstances be ill-advised to let these
reprobates in.
They are
in denial about the outcome of last year's election and
believe the MDC must
be thwarted so Zanu PF with its moth-eaten nationalist
agenda can retrieve
power at the next election. Zimbabwe's friends abroad
should not help them.
Let's hope the visiting Swedish delegation speaks out
against vindictive
prosecutions of civic activists, lawyers and journalists
and explains to
those responsible that Sweden will not indulge misrule.
Mpofu for instance
not so long ago made his opposition to the inclusive
government
clear.
And let us not forget that he presides over Mining and
Indigenisation
legislation calculated to deter would-be investors. It is
difficult in the
circumstances to see why Moyo is campaigning for him to go
to the UK. Mpofu
and the gang around Mugabe should only be admitted to
Europe and the US when
they have stopped blocking change and locking up
lawyers and journalists.
And the six state journalists bleating at Kariba
about how unfair sanctions
have been to them should stop lying about why
those sanctions were imposed
in the first place and play a useful role in
liberating the public media
from the arthritic grip of Mugabe's
henchmen.
Evidence of Zanu PF's failure to embrace change was
available last
Thursday when deputy information secretary Ephraim Masawi
announced the
formation of five politburo committees to deal with matters
such as
ideology, research and succession.
Firstly, it is difficult
to believe that this Stalinist body still
exists anywhere outside of North
Korea. And secondly that dead wood such as
Didymus Mutasa will be busying
himself with the party's "ideology", whatever
that is apart from greed and
corruption.
"The party wants to claim a huge stake in the inclusive
government
when it comes to economic issues," Masawi said. "We want to make
sure that
the party has a bigger say as far as government is
concerned."
In other words they want to dream up new ways to plunder
the economy,
reverse reform and inflict further damage on the
country.
The whole point of the GPA was to remove Mugabe from the path
of
destruction and let new hands get to work. But obstinacy and meddling
still
prevail. Those making a public nuisance of themselves should not be
rewarded
by the EU.
By the way, where did the visiting French
business delegation get the
idea that there had been reforms in the media?
Tsvangirai perhaps? Their
embassy?
Please would all visitors
consult the media as to what "improvements"
have taken place rather than
indulge in wishful thinking.
There have been absolutely no improvements
whatsoever and any perusal
of the state media will show how far we have to
go. Tuesday's lead letter in
the Herald ("Good riddance to McGee, Pocock")
illustrates the dangers of a
suborned media, allowing official comment to
masquerade as public opinion.
There was Webster Shamu claiming a few
weeks ago the government press
was fair and balanced. What planet is he
living on?
Masawi says it was "alright" for President Mugabe to
appoint Gideon
Gono and Johannes Tomana because it was in accordance with
the constitution.
But is it OK if Mugabe appointed them in
contravention of an agreement
he had reached with the other two
principals?
The GPA is abundantly clear on the need for joint approval
of all
senior appointments. The constitution doesn't come into it. The fact
is
Mugabe has appointed two senior officials without consulting the other
two
principals as he was pledged to do. This is about his
sincerity.
But Gono must draw comfort from the fact that he has the
support of
Joseph Chinotimba. Gono was doing "a fantastic job", Chinotimba
said.
Our question is: Can a Reserve Bank governor survive when all
he's got
for support are delinquent war vets and party hacks?
Does
this really speak well of his standing, either at home or abroad?
We
would call it the kiss of death. Thanks Joe. That should finish him
off.
There is a more serious issue at stake here. Who in Zanu
PF is
blocking an audit of RBZ, a public asset, on the pretext of shielding
Gono?
Since when has the central bank fallen under the ambit of Zanu PF
structures?
Meanwhile, Tendai Biti, who has done a good job in
exposing Gono's
flawed tenure at the RBZ, has lost the plot on the sanctions
issue.
Can he not see how the state media have seized on the issue to
mislead
the public on Mugabe' record? We are now being led to believe, with
Biti's
help, that the country's current predicament has nothing to do with
land
seizures, arbitrary arrests, repression, corruption and
mismanagement.
Why is he allowing his partners in office to get away
with this
campaign of dishonesty without saying a word? Has he been bought
or does it
just look like it?
A word of principle from him would
not go amiss. Dozens of people
still face trumped up charges and had to
undergo months of incarceration and
abuse. Has he forgotten all this so
soon?
And what about people facing the most appalling violence and
intimidation on farms?
Please Tendai, less foolishness. Not a
single person in the current
power structure has confessed to their crimes
and you are running round
claiming the West is being unfair. Ask Jestina
Mukoko and Shadreck Manyere
about unfairness!
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
20:44
STRONGLY supported by Sadc, Prime Minister Morgan Tsvangirai,
Minister
of Finance Tendai Biti, Minister of Economic Planning and
Development, Elton
Mangoma and diverse others of the "inclusive" government
have appealed to
the international community to discontinue their economic
sanctions imposed
upon Zimbabwe.
Those appeals are founded upon
a well-considered recognition that the
desperately needed economic recovery
is severely hindered by the economic
sanctions.
Admittedly,
there are various myths which the pre-inclusive government
political
hierarchy repeatedly disseminated about international economic
sanctions.
The first of such myths was that such sanctions were
imposed years
ago, as malicious acts of resentful former colonists who
wished to
recolonise Zimbabwe and were resorting to imposition of sanctions
in order
to demolish the economy and thereby facilitate recolonisation, and
as acts
of revenge for Zimbabwe's pursuit of its land reform programme. In
reality,
with one solitary exception, no economic sanctions were imposed on
Zimbabwe
until early 2008.
That exception was the US's
promulgation of the Zimbabwe Democracy and
Economic Recory Act, which
includes that until full democracy is restored in
Zimbabwe, the US
representative to the International Monetary Fund (IMF)
must veto any
provision of funding to Zimbabwe. However, in practice that
is a façade
sanction, for the IMF's constitution precludes any advances
to countries
in payment default, and Zimbabwe's debt arrears have been of
such
magnitude for many years that the IMF could not have provided
funding to
Zimbabwe, even had the US's legislation not been enacted.
Save
for that enactment by the US, no country had imposed economic
sanctions
upon Zimbabwe until 2008, although many donor countries
discontinued or
diminished developmental aid (in the main being fearful
that the funds would
be abused and diverted from intended purposes), and
numerous private
sector financial institutions ceased to provide lines of
credit to
Zimbabwe, solely because they perceived Zimbabwe as an
extremely high
risk borrower, from whom repayments were improbable.
However, it was
convenient for the then government to allege the existence
of sanctions, and
to attribute the economy's progressive demise to those
mythical sanctions,
thereby avoiding admission of own culpability for that
demise.
A second myth, recurrently promoted by the
pre-inclusive government,
was that the sanctions were illegal. The fact that
such (non-existent, until
2008) sanctions had not been determined by the
United Nations did not render
them illegal. There is no law, international
or otherwise, which bars any
country from determining which countries
should be recipients of its aid
largesse, or which countries may not
receive funding from private sector
entities, or be trading partners.
Any country has the sovereignty to
decide whether it should, or should not,
transact with any particular other
country. But this did not deter the Zanu
PF government from recurrently
contending the existence of "illegal
sanctions". And these two myths were
only some of the many propagated by the
previous government, and still
contended by the leadership of Zanu PF and
their sycophants.
However, in 2008 the European Union, diverse
Commonwealth countries,
and others did impose economic sanctions, supporting
the "targeted"
sanctions that they had previously applied against the key
members of the
Zanu PF government, and others closely connected to
them.
The targeted sanctions precluded those subjected to them
from
travelling to the imposing countries, and in numerous instances barred
the
children of such named persons from education in those countries. (Of
course, the "victims" of the targeted sanctions readily circumvented the
sanctions by travelling to countries not imposing such sanctions - and
especially to the Far East, by recourse to nominees, trusts and other
facades to disguise whence investments were coming, and the like, but
such circumventions did not diminish their resentment for the sanctions,
or their endless diatribes against those imposing them).
Unfortunately, the economic sanctions that were ultimately introduced
against Zimbabwe, whilst possibly an indirect contributant to the coming
into being of the Global Political Agreement (GPA), which was the catalyst
for the creation of the inclusive government very greatly exacerbated
the Zimbabwean economic decline. One must necessarily ponder whether
indirectly motivating the necessary change of government could not have
been otherwise achieved, without intensifying economic collapse to such
an extent that over seven million Zimbabweans are now so impoverished as to
be subject to extreme, health-jeopardising, malnutrition, with thousands
dying monthly from starvation and health-related consequences of that
malnutrition.
And this is particularly so as those which
the sanctions were
intended to oust from political rulership have not
suffered, and do not
suffer, from the prevailing economic morass. With
rare exception, they
have accumulated such wealth within, and in some cases
outside, Zimbabwe
that they have in no manner had any deterioration in
lifestyle.
They continue to reside in massive, multi-roomed
mansions, travel
in fleets of modern, executive style motor vehicles,
travel widely
internationally, are never without electricity, water,
telecommunications or
other utilities, and maintain as luxurious a
lifestyle as previously. This
they do, whilst the majority of the
population are experiencing extreme
suffering, are greatly in want, and very
many are homeless.
Concurrently, the entirety of Zimbabwe's
infrastructure has been
collapsing, be it the healthcare resources,
education, energy generation,
water purification and distribution, roads, or
anything else.
Commerce and industry, mining, tourism and all
other economic sectors,
deprived of access to essential foreign currency
funding, and of
requisite infrastructural support, and afflicted by
pronounced
hyperinflation, was progressively reduced to the threshold of
near total
collapse, and unemployment soared to almost 90% of the
employable
population.
Whilst all these tragic developments
were not wholly caused by
international policies and actions, nevertheless
the sanctions have been a
significant contributant to the intensified
contraction and demolition of
the economy.
Since the
inclusive government came into being, it has been vigorously
focused upon
bring about the critically necessary economic recovery. Almost
immediately
after its formation, it launched a Short Term Emergency Recovery
Programme
(Sterp), and it is now engaged in formulating a medium and
long-term
programme for economic recovery and development.
Concurrently,
it is pursuing other much needed, long overdue
reforms, including
development of a new, democratic constitution,
revitalisation of
agriculture, restoration of harmonious international
relationships, and
much else.
As with any government, it is not doing everything
right, and it is
also still in a learning curve, but it is striving to
achieve a Zimbabwean
metamorphosis. However, economic recovery is a
prerequisite for almost all
it has to do, and the continuance of
international economic sanctions is a
gargantuan constraint on it attaining
that which is so desperately needed.
If the international
community wishes the inclusive government to
succeed, if that community
wishes to see progressive decline in the
horrendous poverty and suffering of
most Zimbabweans, if it really cares, it
must now speedily bring economic
sanctions to an end.
The prejudice and harm of those sanctions
to the population of
Zimbabwe far outweighs any political influences they
may have.
The international community must now put humanitarian
needs ahead of
political tactics.
BY ERIC BLOCH
http://www.thezimbabweindependent.com
| Thursday, 04 June 2009 18:44 |
|
OUR country has gone through an unprecedented economic downturn over the past decade. The related challenges affecting our industries, public institutions and citizens include the following: high country risk, unavailable and unaffordable infrastructure (water, power, roads/railways, telecoms), low capacity utilisation, low production, under-capitalisation, economic stagnation, skills drain and rampant unemployment.
This is the democratic, prosperous and globally competitive Zimbabwe we seek to establish. In pursuit of this vision the role of the state must be clearly redefined as that of an enabler and facilitator. The private sector and civic society are the doers. More significantly, we must recast and rethink our understanding of sovereignty, away from the traditional emphasis on ownership of non-performing assets to the ability to effectively and efficiently deliver high quality and affordable services to both citizens and institutions. Delivery and not ownership should be the operative word in both the private and public sectors.
Noting that PPPs were urgently required in order to refurbish and develop Zimbabwe’s infrastructure and for long term economic development, the workshop recommended that an enabling environment for PPP implementation should be developed without further delay. Participants made the following specific recommendations:
The opportunities identified in the workshop discussions will underpin the success of almost all areas of the economy. Allowing private funding and efficient management coupled with on-shore profit retention will ensure quick implementation leading to economic resuscitation. Allowing private funding and efficient management coupled with on-shore profit retention will ensure quick implementation. We will struggle unnecessarily to progress as a nation towards a higher quality of life. In pursuit of a peaceful, democratic and prosperous Zimbabwe we must redefine the essence of sovereignty, from the traditional emphasis on ownership of assets. The ability to deliver high quality and affordable services to the citizens should be the core of dignity and sovereignty as a nation.
More significantly, in non-infrastructure business ventures such as mining, manufacturing, and agriculture, the government is ill-equipped to go it alone. The participation of private money is critical in both infrastructure and non-infrastructure State ventures.
We need a national paradigm shift from the ownership mantra to the delivery doctrine. In developing the PPP-driven infrastructure strategy it is imperative to acknowledge and leverage the interdependences between different sectors. Hence a holistic and integrated approach that unlocks synergies should be adopted between related industries. For example, the challenges facing Zisco, Hwange, NRZ, and Zesa cannot be resolved separately for each business enterprise. A comprehensive and all-embracing strategic solution that involves all four institutions together with the Ministry of Water is core and critical.
For example the PPP intervention in the Zimbabwe energy sector cannot be sound and effective without taking into account the energy needs and capacity of the rest of Sadc. Under globalisation, characterised by regional economic blocks, the region and the globe have become the only units of sustainable analysis. PPPs must be alive to this reality.
The specific sector proposals are not meant to be imposed on line ministries, but rather to generate interest and possibilities. These suggestions should be evaluated, improved or rejected. In the event of rejections better alternatives must be proffered. Not doing anything is not an option. We must all close ranks in this grand endeavour to resolve our infrastructural challenges, boost capacity utilisation, drive industrial production, improve public sector performance, and thus achieve shared economic growth and job creation.
BY ARTHUR MUTAMBARA |
http://www.thezimbabweindependent.com
Thursday, 04 June 2009
18:29
THE hysteria in Zanu PF ranks over calls by the two formations of
the
MDC for Gideon Gono's re-appointment as Reserve Bank governor to be
rescinded was predictable.
It was unfortunate that a number of
Zanu PF luminaries including
President Robert Mugabe chose the funeral of
Gono's late brother Peter Gono
as an occasion to vent their vitriol. Not
surprisingly there were thinly
veiled threats of violence if calls for
Gono's removal persisted.
Mourners were subjected to eulogies about
Gono from Mugabe, Justice
Minister Patrick Chinamasa, Mashonaland Central
governor, Martin Dinha and
Air Vice-Marshall Henry Muchena.
The Global Political Agreement (GPA) clearly states that all senior
government appointments have to be made with the consent of the three
principals, namely Mugabe, Morgan Tsvangirai and Arthur
Mutambara.
These appointments include those of the Reserve Bank
governor and
Attorney-General. In the post-GPA era, Mugabe cannot make these
appointments
unilaterally.
This would be in breach of the
letter and spirit of the GPA.
Mugabe, to whom the concept of
good faith is apparently alien,
proceeded to extend Gono's contract which
was due to expire in December 2008
for a full five-year
term.
Later he appointed Johannes Tomana as Attorney-General
without
consulting Mutambara or Tsvangirai. In both cases he breached the
GPA and he
knows it. This is what the dispute is all about. Although it is
an exercise
in futility the MDC has every right to refer it to Sadc as the
guarantor of
the GPA.
To divert attention from the nub of the
issue, extraneous matters like
the liberation war and the land reform
process are now being introduced.
This is a smokescreen designed to hide the
simple fact that in the cases of
Gono and Tomana Mugabe acted outside the
terms of the GPA.
To justify their opposition to Gono's removal
they cite his record of
success as governor. "He saved the nation from
collapse" has become the
refrain. He defeated Western attempts to effect
regime change through the
imposition of sanctions. He is a pillar of the
revolution.
No amount of lies, propaganda and threats can hide
the indubitable
fact of Gono's abysmal failure as Reserve Bank governor. His
politically
motivated reckless ventures into areas outside the mandate of a
central bank
governor accelerated Zimbabwe's calamitous economic meltdown.
What criteria
do Gono's defenders use to assess his record?
One of the most important responsibilities of a Reserve Bank chief is
to
keep inflation low and protect the value of the national currency. When
Gono
was first appointed in 2003 the Zimbabwe dollar, though on a
precipitous
downward trajectory, still had some value. Six years later on
Gono's watch
it was officially pronounced dead.
All his efforts at slashing
zeros and other gimmicks failed. After
years of non-stop printing of money
while the economy was shrinking the
inevitable happened. The currency was
printed to worthlessness. It is common
knowledge that a lot of the money
Gono printed found its way into the
currency black market through an army of
shady dealers. This fuelled
inflation and eroded the value of the Zimbabwe
dollar at an alarming rate.
The Reserve Bank was by far the
biggest player on the black market but
the authorities saw it fit to arrest
and prosecute people who did the same
to survive either as individuals or
businesses. Some of these people still
languish in exile.
When Gono took over the reins at the RBZ inflation was high but had
not
reached hyperinflationary levels. He called inflation the number one
enemy
and vowed to "tame the beast". He flattered to deceive in his first
few
months by bringing inflation down. But sober economists warned that
without
tackling the root causes of inflation the battle against it would be
lost.
They were proven right. The last time official
figures were released
in July 2008 inflation stood at 231 million percent.
Later it was
unofficially estimated at levels of billions and trillions.
This is now
hailed as success.
Gono usurped functions of
cabinet ministers with Mugabe's sanction. He
is praised by his backers for
funding the Farm Mechanisation Programme. What
were the results? It
certainly did not increase agricultural production.
Today a large percentage
of Zimbabweans are dependent on food aid and
agricultural production
continues to plummet. But in the Orwellian world
that Zanu PF politicians
inhabit abject failure and success are synonymous.
Sanctions
are now the scapegoat for everything that has gone wrong in
Zimbabwe. Yet
when Gono took over he did not think that sanctions would be
much of a
problem. He pompously pronounced repeatedly that "failure is not
an option".
He was immediately dubbed the "Saviour" and "Mr Turnaround" by
his admirers
mesmerised by his televised monetary policy pronouncements.
Parliament and cabinet were marginalised with its members reduced to
cheerleaders. Gono's position as de facto number two to Mugabe was cemented
when he became the official dispenser of largesse. Even judges got plasma
television sets from "your governor". The few who were not impressed could
only sulk in private. They could not afford to openly go against a Messiah
who had the total backing of the chef de grande.
Gono had
become Mugabe's Rasputin. Sanctions would be defeated by Gono's
genius. His
out-of-the-box brand of economics would see Zimbabwe through
hard times.
Furthermore, Mugabe's visionary "Look East Policy" would see
billions of
dollars worth of investments from China and other parts of Asia
flood
Zimbabwe.
Planes were dispatched to Beijing and Hong Kong to
pick up tourists
who could not wait to visit wonderful Zimbabwe. The West
could go to hell.
After all China the rising superpower was Zimbabwe's
friend. It did not
occur to Gono and his master that China and other
successful Asian countries
were not in the business of bailing out countries
which mismanaged their
affairs. While the daydreaming went on in Harare the
economy was in free
fall. The results are plain for all to
see.
Yet people are told to stand up and salute
Gono.
Advocate Dinha must take credit for uttering a truth that
was
unfortunately buried in all the garbage that was spewed out. Attacking
some
Zanu-PF leaders now calling for Gono's removal he said,
"Kunyanya-nyanya
veparty yedu, takabatsirwa musangano neReserve Bank," (Our
party was
assisted by the Reserve Bank). Gono placed the resources of the
Reserve Bank
and the state at the disposal of Zanu PF.
Mugabe is fond of saying Gono saved Zimbabwe. What he means is that he
saved
Zanu PF. But in so doing he destroyed Zimbabwe. This is not to say he
was
solely responsible but he has a lot to answer for. Not only did he save
Zanu
PF but he allegedly lined a few pockets of movers and shakers in that
party.
This explains the loud clamour for his retention.
Gono must do
the honourable thing. He must resign. The majority of
Zimbabweans have no
confidence in him. -- The Zimbabwe Times.
http://www.thezimbabweindependent.com
Thursday, 04 June
2009 21:03
US president Barack Obama has so far stuck to his electoral
script on
foreign policy: a tough military approach in Afghanistan,
tough-talking with
Israel and a positive conversation with the Muslim
world.
North Korea's nuclear antics make a necessity of the uneasy
relationship with Russia and China. He keeps a distant reconnaissance over
Africa where cash is the preferred weapon.
So far it is not
clear that the increased army in northern Afghanistan
will achieve as
spectacular a result as Pakistan has done in the past two
weeks of military
offensive against the Taliban and other militants in the
Swat Valley; Iraq
is bound to remain as problematic as Afghanistan while
Israel exploits its
stranglehold over American politics to do as it
pleases -- which is to be
stubbornly opposed to the two-state concept in
Palestine.
Not even the name Robert Mugabe poses enough threat to warrant his
personal
scrutiny in Southern Africa. Secretary of State Hillary Clinton, in
a recent
interview, was forced to say "it was in the best interest of
everyone" for
Mugabe to go after a desperate reporter pressed her on whether
the US would
"like to see President Mugabe go first before you can come in?"
PM Morgan Tsvangirai was not so indulgent when put under similar
pressure
over the appointments of Johannes Tomana and Gideon Gono and claims
of fresh
farm invasions. "We can't all be preoccupied with Gono and Tomana
at the
expense of all the issues that the country is facing," he retorted.
He said
"so-called farm invasions" had been "blown out of proportion".
"He is behaving like Mugabe," was the loaded epithet from a betrayed
white
farmer.
Compared to Finance minister Tendai Biti's attitude
towards Gono,
Tsvangirai's brusque response is not only tame and elegant but
his attitude
the antithesis of Biti's. Since coming face to face with the
reality of
office, Tsvangirai appears to have adopted "quiet diplomacy" as
his modus
operandi, much to the chagrin of those who believe they control
him.
To Biti Gono is the ultimate evil -- the al qaeda who
should at the
very least be "ring-fenced" from normal society.
Otherwise he should face a firing squad. It's all got a chilling
effect,
especially when one considers that those who had the weapons and
training to
shoot their way into State House in 1980 were less vulgar in
their words.
You sense here the recklessness of someone whose impulses are
alien and
external to the Zimbabwean political spirit of reconciliation or
accommodation.
Yet the quarrel over Gideon Gono's position
as RBZ governor needn't
have reached this wretched state where the MDC-T now
appears at times under
pressure to recant as Zanu PF uses Gono as a rallying
point to mobilise
political forces which had been retired since the signing
of the memorandum
of understanding in July last year.
There
appears to be an unhealthy desire to try and please external
influences.
This often takes the form of a desire for vengeance where even
financial
fraudsters who would still face trial in hell for their crimes in
the 2004
credit crunch now want Gono for lunch.
Two weeks ago I tried to
explain this phenomenon in the context of the
South African transition from
Thabo Mbeki to a "new era" of Jacob Zuma. To
achieve this feat, the ANC is
supposed to obliterate its legacy of 15 years
since 1994 just to bloat out
the Mbeki name. What needs to be retained is
the legend of Nelson Mandela's
"racial harmony".
But the same propertied class which supported
Mbeki's removal now
faces the dilemma of a Zuma presidency posing a greater
threat to its
interests if he opts to meet the expectations of his mainly
impoverished
black electorate.
We all know the source of
pressure from Biti's irritated outburst
against the West's "ahistorical"
demands earlier this week. Tsvangirai's
abrasive retort against
preoccupation with Gono and Tomana bears the same
symptoms of impatience
with being pushed around in the name of money.
Biti told the
importunate anti-Gono league the man had been
"ring-fenced". But that will
not appease them. Biti should never have taken
up their fight in the first
place. Now they behave exactly as they please --
setting their own
benchmarks and terms about the lifting of sanctions and an
end to violence.
There is nothing Biti can do beyond shadow boxing with
Gono.
Yet the MDC could have acted differently to obviate
the current
credibility crisis in which the leadership must blow hot and
cold on the
deleterious effects of Western sanctions on the Zimbabwean
economy which all
along it pretended never existed.
African
politicians must learn to appreciate the contribution of those
who have made
sacrifices in their era before them. That is an invaluable
lesson we miss
from Western democracies as we pursue personal vendettas.
What
Mugabe and Gono needed to leave their respect bases was not
public
denunciation or threats of execution by a firing squad. They needed
an
acknowledgement of their contribution from well-meaning
Zimbabweans.
Perhaps I was still too young in 1980 but I don't
recall the trial of
individuals or businesses who helped the Rhodesian Front
bust UN sanctions!
Why is it today the MDC-T's unenviable task to raise a
firing squad? Is it
being honestly suggested that all Zimbabweans should
have waited for the
nation to "crash and burn"?
Having
acknowledged Gono's role, the next step was for the MDC to
explain how the
new recovery thrust called for a new image and a new
thinking.
For the MDC to pretend that all those who came before it did nothing
but
destroy the country was naive.
And those who were promising manna
appear to have been hit by a
tsunami their economic prophets could not
foretell. America is enough
headache for Obama to worry about
Zimbabwe!
BY JORAM NYATHI
http://www.thezimbabweindependent.com
Thursday, 04 June 2009 21:01
THERE is a controversial debate raging in and outside Zimbabwe about
whether
Western countries should lift existing sanctions -- some call them
restrictive measures -- or keep them in place until the inclusive government
initiates political and economic reforms.
The debate seems to
be causing realignment of opinions, with Zanu PF
and the MDC increasingly
singing from the same hymn sheet and others, mainly
in civil society,
mobilising against any relaxation so long as repression
persists.
Finance minister Tendai Biti fuelled the debate this week when he
repeated
his plea that Western countries must lift sanctions to facilitate
economic
recovery. The story was first carried in the foreign press and
later picked
up by the Herald. Biti had previously said the same thing after
visiting
Washington and London.
Prime Minister Morgan Tsvangirai has
urged Western countries to lift
the "restrictive measures". President Robert
Mugabe and Zanu PF ministers
have for years been calling for the removal of
the sanctions. To them, all
problems in Zimbabwe were caused by
sanctions.
Responding to a Herald story on Tuesday headlined
"Sanctions hit local
British pensioners", the British embassy in Harare said
the Herald continues
to "peddle gross distortions and
misinformation".
The embassy said there are no UK or EU
sanctions on Zimbabwe. It said
the current "EU measures" are carefully
targeted against 243 individuals and
organisations responsible for the worst
excesses of the previous regime with
regard to human rights abuses,
political violence, corruption, hate speech
and undermining the rule of law.
These measures have no adverse effect on
ordinary people, it
claimed.
"The economic collapse of Zimbabwe and its
infrastructure is the
result of the ruinous policies of the previous
regime," the embassy said.
It's a problem of the politics of
deception. Most of the major players
in this issue have been battling each
other on the basis of propaganda, lies
and deception. First, Mugabe and his
cronies have been claming sanctions
caused the economic and social problems
that Zimbabwe faces today.
Yet the facts speak for themselves.
Zimbabwe's current economic crisis
(note: there were fundamental problems of
a structural nature before) began
in 1997, with the dramatic collapse of the
Zimbabwean dollar after the
government made huge unbudgeted payouts to war
veterans. This was worsened
by the DRC war in which Zimbabwe intervened from
1998 to 2002.
The political conflict attendant upon the
constitutional reform
process between 1999-2000 and the establishment of the
MDC in 1999 also
worsened the situation. This was aggravated by the land
invasions which
started in 2000 and persist up to this day. There were also
company
invasions and seizures. Underlying all this was Mugabe's disastrous
policy
failures.
There is no straight line on such debates
but in brief this should
establish the context and genesis of the current
economic crisis. By the
time the EU imposed "targeted sanctions" in 2002
over the dispute over
presidential election observers, the crisis was
already very serious.
There were all sorts of shortages, mainly
forex and thus impacting on
critical imports such as fuel and drugs, and the
economy was fast
collapsing.
By 2002 when sanctions were
imposed, Zimbabwe was no longer getting
funding from the IMF and World Bank
due to mounting arrears. Donors were
pulling out over land reform. Former
South African president Thabo Mbeki and
counterparts had started to
intervene in 2000 after realising the
consequences of Mugabe's ill-advised
policies would be too ghastly for
Zimbabwe and the region. In other words,
the damage was already done.
The Zanu PF assertion that
sanctions created the economic crisis is
false. The truth is there are
targeted sanctions and these have worsened
the crisis.
Tsvangirai and his followers have also been dishonest. Before they
were in
government, they argued there were no sanctions but now openly admit
there
are. The fact is the sanctions which the MDC initially downplayed have
tentacles that spread to institutions such as IMF and World
Bank.
The IMF recently admitted this. The measures closed
funding and lines
of credit for Zimbabwe. Local companies and individuals
still can't trade
with the West. However, the sanctions are only limited.
Zimbabwe is still
able to export and import essentials even from the
West.
Tsvangirai's and Biti's remarks on sanctions have exposed
the
duplicity of the MDC leaders. The other deception is that the EU has not
imposed sanctions on Zimbabwe. It has. The only difference is the scope of
these measures. It doesn't help for the British embassy to say there are no
sanctions.
Going forward, it's clear these sanctions must
be removed. It has now
been widely established that they don't serve a
useful purpose. Their
negative impact clearly far outweighs their benefit.
At the same time the
repression which continues to stalk the land must be
admitted and removed.
Economic recovery is impossible so long as property
rights are under threat
and investors scared off.
http://www.thezimbabweindependent.com
Thursday, 04 June
2009 20:56
WE have often warned that Reserve Bank governor Gideon Gono
- by
hanging on to office - was parking himself into a tight spot where he
would
become a hostage to Zanu PF's crocodilian ideals.
President Mugabe's declaration last month that Gono was not going
anywhere,
and the concomitant support from Zanu PF places the governor in an
invidious
position. He has taken the poisoned chalice and asked for a
refill.
In his successive monetary policy statements he
painstakingly tried to
proclaim his independence from Zanu PF's projects by
attacking damaging
policies like land grabs and price
controls.
He was aware of the toxicity of an open alliance with
Zanu PF but
always spoke glowingly of his principal, President Mugabe. While
there is no
real distinction between Mugabe and Zanu PF, Gono has been
careful not to be
identified as a party cadre. Instead he tried to be a
unifying force for
Zimbabweans. He pushed for a political settlement as a
solution to the
country's economic decline.
"The economy
and politics are inextricably intertwined such that it
does not make sense
for anyone to expect the RBZ to somehow fix the national
economy and turn it
around for the better while political players continue
to play bickering
games over the way forward," he said in a newspaper
interview last
December.
"Therefore, I cannot imagine let alone proffer any
way forward in
terms of reviving the economy given the current situation
that is not based
on and informed by a political economy of national
unity.
As such, the only way forward for our country is for
Zimbabweans to
come together and to speak with one voice to foster a
national consensus
that puts the country's interests first.
"For sometime now my team and I at the RBZ have been calling for a
social
contract and a spirit of national healing as the pillars of the way
forward
not just in our national economy but also in our national politics,"
he
said.
The irony of it is that political players today are
bickering over his
continued stay in office. He has become a symbol of
division and negative
political contest. He is doomed.
He
believed at the time that he would strike the right chord with his
opponents
in the MDC-T, thus guaranteeing his political survival. That is to
say that
under the inclusive government, he expected endorsement from the
MDC-T, a
party he has been very careful not to condemn.
That endorsement
would have cleansed him of all the accusations that
have shadowed his tenure
at the central bank. Like his principal Robert
Mugabe, Gono badly needed the
MDC to give him thumbs up. Like a politician
he now has to preoccupy himself
with legitimacy and not competence.
He remains unwanted within
the MDC-T. He has to settle for Mugabe's
kiss of death for comfort. Mugabe
has become the governor's protector. The
president is prepared to face off
with anyone who thinks that Gono should
go.
Mugabe's recent
bold declaration that Gono is not going anywhere
created a new political
phenomenon of the Gono factor in Zanu PF's politics.
Political creatures
linked to Zanu PF have been creeping out of the woodwork
to make
proclamations and threats in the name of Gono. These include war
veterans
leader Joseph Chinotimba who threatened to remove white farmers
from the
land if Gono's persecution continued.
"As war veterans, we are
saying those whites whom we had allowed to
remain in the farms should leave
with immediate effect - immediately!
"We can only allow them to
remain on condition that they drop the
issue of Gono and (Attorney-General
Johannes) Tomana leaving their jobs."
There have been toadying
statements from Zanu PF politicians,
resettled farmers, Doctors for
Development, the military, war collaborators
and other institutions with
close links to Zanu PF.
These are Gono's new best friends it
seems. It does not exactly make
him the flavour of the month.
In essence, the latest solidarity messages in support of the RBZ
governor
now firmly place him in the league of Zanu PF fall guys, including
those
accused of causing disruptions on the land. Gono may not want to be
associated with Chinotimba's boisterousness but the governor will now find
it very difficult to extricate himself from his current invidious position
in which he has become an appendage of Zanu PF. He cannot openly condemn
Chinos either!
Then there were disclosures by Mashonaland
Central governor Martin
Dinha that Gono helped Zanu PF. And this is supposed
to endear him to all
Zimbabweans especially MDC-T
supporters?
If anything, Gono has become the rallying point for
Zanu PF which has
largely been rudderless since the formation of the unity
government. Zanu PF
will now try to use the spat over Gono's candidature as
RBZ governor as the
new form of political contestation with the MDC-T in the
same way Mugabe's
party has used the land issue and lately sanctions to try
and drum up
support. The focus will no longer be on his role as RBZ governor
but a
political football. Where will it land I wonder!
BY
VINCENT KAHIYA