FinGaz
Nkululeko Sibanda Staff
Reporter
IT IS 5:45am on a chilly Thursday morning when 75-year-old
Mkhunjulwa Ndlovu
wakes up and drags himself out of his makeshift pole and
dagga hut.
He looks up to the sky, hoping to see evidence of possible
rain. But today,
the skies are, once again, clear.
He prays audibly, "Oh
God, I lay my life in your hands. Come to our rescue.
Look, dear Lord, your
sky that you created is clear and there are no signs
of any rains falling
soon."
After the short prayer, he begins his daily, tiring journey to his
field,
his mind still clouded with apprehensions over his fate should the
rains
fail again.
He inspects what is left of his maize crop. Slowly, he
grabs his hoe and
starts weeding around the wilted stalks.
Ndlovu, a
resident of the Maphisa area of Kezi district in Matabeleland
South, has
given up hope that the rains will come in time to save his crops.
"The rains
appear to be very far away. We have been
surviving on food handouts. Donors
have been coming to our rescue and we
hoped that this time around, the
heavens would open up and rescue us from
having to rely on handouts," says
Ndlovu.
In this drought-prone Matabeleland South district - as in most areas
of
Zimbabwe - evidence of the government's claims of a bumper harvest this
cropping season is nowhere to be seen.
The predicament of villagers in
Maphisa has been worsened by government's
failure to repair the road linking
the area to Bulawayo, just 120km away,
where stocks of imported maize are
kept for distribution to other parts of
the region.
The villagers ask
about reports gleaned from radio broadcasts, that there
are adequate grain
stocks in the country. They ask when any of that food
will reach
them.
Ndlovu cannot recall when residents in the area last received food
aid.
He says, however, that some well-wishers rounded up all the elderly
people
in the area last September and treated them to an early Christmas
party. The
Good Samaritans also handed out food hampers.
"They came here
and took us to Maphisa Growth Point where they gave us food.
It was
only
for that day and that was the last we heard of people wanting to
help.
"We have communicated our worries to district administrators and other
officials but they all seem to be in the dark about what is happening. We
are now pinning our hopes on the Almighty," Ndlovu said.
Miriam
Mkhwananzi, a home-based caregiver in the area, said if there was no
further
assistance from either the government or the donor community, there
was a
high likelihood that many elderly people could starve to death.
"We have so
many elderly people here and they are unable to till the land
even if the
rains come. There should be a scheme to collect grain for these
vulnerable
groups of people. If that is not done, there is a high risk that
these
people could die," said Mkhwananzi.
She said efforts had been made to
approach the Grain Marketing
Board for a special
dispensation allowing
vulnerable groups to be charged a discounted price for
maize.
However
local GMB officials advised the villagers to lodge their appeal with
the
parastatal's head office in Harare.
But nobody in this arid district can
afford a bus ride to Bulawayo, let
alone Harare.
"We are not even
guaranteed that if we travel to Harare to present our
appeal, it would
be
accommodated. The GMB management here says it cannot help us with that
kind
of
request and we wonder whether travelling to Harare can bring us joy or
more
misery," said Mkhwananzi.
FinGaz
Clemence Manyukwe Staff
Reporter
THE government has deployed the army, the Central Intelligence
Organisation
(CIO) and the police to monitor fuel stations supplied by the
National Oil
Company of Zimbabwe (NOCZIM).
But there is one little
problem. These service stations rarely receive the
commodity.
This
disclosure is made in a parliamentary report tabled before the senate
this
week.
The Parliamentary Portfolio Committee on mines, energy, environment and
tourism report said: "A national oil taskforce, comprising soldiers, police,
CIO and other government agents has been set up to ensure the smooth running
of business at these service stations. Your committee noted that these
designated sites are not allowed to sell any fuel other than that from
Noczim."
"However," the MPs reported, "the biggest challenge is that
these stations
can go for months on end without the commodity. So how are
they supposed to
break even?"
The committee said Noczim was fortunate to
have received fuel under the
US$50 million BNB Paribas deal, brokered by the
Reserve Bank of Zimbabwe and
Bindura Nickel Corporation last year. But the
committee said the deal "was a
drop in the ocean."
Submissions made to
the parliamentary committee indicated that from January
to November 2006,
Noczim received enough foreign currency to procure a
quarter of the national
fuel requirements for the year. However,
Noczim-supplied service stations
remained dry, and the committee has
recommended stricter monitoring to
ensure this fuel is not diverted to the
black market.
According to the
committee, Zimbabwe needs US$100 million per month for
fuel.
The
committee said there was a lot of suspicion between the government and
multinational oil companies.
"The ministry of energy was not willing to
engage in dialogue for a
different pricing formula on Direct Fuel Import
(DFI) fuel because it
strongly believed this would be tacit approval of the
parallel market or
devaluation of the dollar," the report said.
FinGaz
Clemence Manyukwe Staff
Reporter
GOVERNMENT will export 10 000 tonnes of sugar from Hippo Valley
Estates to
raise foreign currency for grain imports, it has
emerged.
The move comes despite recent claims by a Parliamentary
portfolio committee
that producers were exporting 70 percent of the
country's sugar output,
worsening shortages on the domestic market.
Producers deny the charges.
GMB acting chief executive Samuel Muvuti said
there was nothing wrong with
exporting sugar.
"This is trade, like any
other trade. Any country can export whatever it can
export," Muvuti
said.
Muvuti however denied that the proceeds of the sale would be used to
import
maize, saying instead that they would be used to pay off debts owed
to
foreign grain suppliers.
"We owe a lot of people money and the money
(from sugar sales) can offset
those debts," Muvuti said.
Muvuti gave no
details on where the government intends to export the sugar,
or how much
grain the GMB has so far imported.
It was not immediately possible to get
comment from Hippo Valley, the
country's largest sugar producer, owned by
South Africa's Tongaat-Hullett.
In January, government approved a 117 percent
hike in the price of sugar in
a move it said that was aimed at improving
sugar supplies.
At the time, the Zimbabwe Sugar Association (ZSA), which
represents cane
farmers, sugar millers and refineries, had said the industry
was under
serious threat due to significant cost increases and a capped
sugar price.
The Parliamentary Committee on Lands and Agriculture last year
recommended
an audit of land ownership in the lowveld, where they feared
corruption in
the allocation of farms was threatening sugar
output.
Previously, the ZSA has denied government charges that its members
were
involved in sugar illegal exports, saying the Ministry of Industry and
International Trade controlled all export of sugar. Any export is
agreed
at the beginning of each milling season, in April.
The country
consumes an average of 158 000 tonnes per month.
FinGaz
Zhean Gwaze Staff
Reporter
Department refers citizens to NGOs
Zimbabwe's social welfare
delivery system is close to collapse due to a lack
of funding by the fiscus,
welfare groups say.
Faced with an inflation rate of 1 593.6 percent,
depleted grain stocks and
rising unemployment, the Department of Social
Welfare has been forced to
refer vulnerable groups to aid institutions, many
of which are hamstrung by
financial constraints resulting from donor
pull-out.
Although Social Welfare department director Mhishi could not be
reached for
comment, welfare associations confirmed that they had not
received any
assistance from the department this year, despite an increase
in the number
of needy cases.
Public Service, Labour and Social Welfare
Permanent Secretary Lancaster
Museka said the department had received a
grant of $24.5 million from the
budget, a fraction of the $18 billion it
requested for 2007.
"We are feeling the pinch like everyone else in the
country. The
effectiveness of social welfare depends on the performance of
the economy.
All ministries are competing for resources," Museka
said.
The United Nations Children's Fund (UNICEF) estimates that one in four
Zimbabwean children is orphaned, while more than two million more are
regarded as vulnerable.
A joint Zimbabwe Vulnerability Assessment
Committee - comprising the World
Food Programme (WFP), Southern Africa
Development Community institutions,
non-governmental organisations and the
government - estimates that more than
1.4 million children are in immediate
need of food aid.
Opposition Movement for Democratic Change (MDC) secretary
for Labour and
Social Welfare shadow Minister Paurina Mpariwa, who toured
the homes of
vulnerable people in the country this week, said most
institutions were
under funded and could no longer provide basic
needs.
"The economy is failing to facilitate any welfare. Feeding schemes
have
ceased to exist and the Social Dimensions Fund is no longer available,
"
Mpariwa said.
However, through the joint financial efforts of donor
agencies like the
United Kingdom Department for International Development,
New Zealand AID,
the Swedish International Development Agency and the German
Government,
vulnerable people are getting some assistance.
Under an
agreement between UNICEF, the government and 21 non-governmental
organizations, about US$70 million will be earmarked for child
welfare.
More than 3 000 metric tonnes of grain were distributed to at least
500 000
people through the WFP.
But aid agencies say the number of people
needing relief will increase once
government authorises the group's feeding
programme.
Aid workers also say the fixed exchange rate is eroding the value
of aid
money.
The local currency is pegged at 250 to the US dollar on the
official market,
but fetches about $7 000 on the parallel
market.
FinGaz
Christella Langton Staff
Reporter
ZIMBABWE'S huge US$800 000 spending on a corruption survey is
wasteful as
most culprits are already known, the head of a leading
anti-corruption group
says.
Government recently announced the
Ministry of State Enterprises,
Anti-Monopolies and Anti-corruption is to
embark on a survey on corruption.
The exercise will cost US$800 000, of
which government would account for
US$450 000 while the remainder would be
funded by donors.
But Goodwill Shana, head of anti-corruption group
Transparent International
Zimbabwe (TIZ), said yesterday that although the
survey was welcome,
priority should be given to targeting known culprits for
prosecution.
"The priority is to deal with the cancer right now by taking
immediate
action on known culprits. We are trying here to take stock in a
room that is
on fire; we should first put out the fire, and then
stock-take," said Shana.
Shana said a survey was "politically safer" for the
Ministry, as taking
action against corruption means confronting top
political figures.
The survey's promoters say it will investigate perceptions
that corruption
is rampant only in the public sector and would look at the
effects of a
consolidated piece of legislation dealing specifically with
corruption.
"Unless one carries scientific research into the levels, the
different
mutations and the perceptions of society about corruption,
anti-corruption
policy formulation becomes an uphill task," said the
Minister of State for
State Enterprises, Anti-Corruption and
Anti-Monopolies, Samuel Undenge.
University of Zimbabwe (UZ) social sciences
lecturer Claude Mararike will
lead the survey, which will run over eight
months. The survey will poll 500
000 people.
FinGaz
Njabulo Ncube Chief Political
Reporter
Opposition seeks court order to hold rallies
THE Movement for
Democratic Change (MDC) will file an urgent application in
the High Court
today to compel the government to lift the ban on political
rallies. The
court action comes as political tensions continue to escalate
following the
arrest of 50 protesters yesterday and as labour unions press
ahead with
plans for a nationwide strike.
The application by the Morgan Tsvangirai
camp of the MDC will be its second
in three days. On Tuesday, the opposition
party applied to have Police
Commissioner Augustine Chihuri and six of his
top lieutenants charged with
contempt for defying a court order sanctioning
the holding of an MDC rally
in Highfield a fortnight ago.
Legal counsel
for the MDC, Selby Hwacha of Dube, Manikai and Hwacha, told
The Financial
Gazette yesterday: "It is an urgent application seeking to
have Home Affairs
Minister Kembo Mohadi set aside the prohibitions. We want
the prohibitions
to be declared null and void. The intention is to have
these reversed after
firstly dealing with the minister as stipulated under
the Public Order and
Security Act (POSA)."
Hwacha said the legal team representing the MDC lawyers
was collecting
evidence showing that police caused the violence that rocked
Highfield and
other high-density Harare suburbs on February 18.
"We want
to prove that it was not the opposition supporters but the police
that
started the whole chaos," he said.
Police last week outlawed rallies and
demonstrations in Harare and other
parts of the country that are regarded as
opposition strongholds, in
reaction to growing unrest over the
economy.
Using teargas, batons and water cannons, police scuttled a rally
that
opposition leader Morgan Tsvangirai was to hold at Zimbabwe Grounds in
Highfield to launch his 2008 presidential election campaign in defiance of a
High Court order barring them from interfering with the rally.
This week,
MDC lawyer Jessie Majome, filed an urgent court application to
have police
charged with contempt of court. Majome warned that failure by
the courts to
charge the police would be seen as tacit approval of state
repression and
would dent public confidence in the judiciary.
"Take note that an urgent
chamber application is made to the honourable
court on the grounds that the
respondents are in abject contempt of court
after having violently violated
an order of the honourable court of 17
February 2007, granted on an urgent
basis," reads part of the application.
Justice Anna-Mary Gowora had granted
Tsvangirai an order allowing his party
to proceed with the meeting. However,
heavily armed police and ZANU PF youth
militias sealed off the Zimbabwe
Grounds venue, setting off violent clashes
with opposition activists that
left scores injured. At least 40 protesters
were arrested.
"The order
interdicted the respondents and the Minister of Home Affairs
(Kembo Mohadi),
from unlawfully interfering with, disrupting or prohibiting
the applicant's
rally that was critically timed for 18 February 2007 and
which still
requires to be conducted urgently, and in any case by 17 March
2007 in terms
of the Applicant's lawful political programme," said Majome.
Apart from
Chihuri, the five other respondents cited in the application are
Chief
Superintendent Thomsen Jangara, the Officer Commanding Harare South,
an
Inspector Manyere, Assistant Inspectors Chingoruro and Moyo,
officer-in-charge, Machipisa Police Station, and an Inspector Bangamu.
In
her certificate of urgency, Majome said if the order sought by the MDC
were
not granted, police would continue to unlawfully and with impunity
suppress
the opposition party's right to organise politically and launch a
campaign
for a presidential election, which in terms of the Constitution
must be held
by March 11, 2008.
Said Majome: "If the order sought by the Applicant is not
granted, the
Applicant will be unable to conduct its watershed rally whose
purpose is to
launch its Presidential Campaign which it was supposed to have
done on 18
February 2007, but was prevented by the respondents' aggravated
and violent
contempt of court."
"The esteem for the administration of
justice in the eyes of the public will
be shaken and therefore suffer
irreparable harm if the honourable court does
not react swiftly and
decisively to the naked contempt of court of the
respondents because of the
fever-pitch level of public interest in the
brazen and arrogant defiance by
the respondents of the honourable court's
order."
Majome said the timing
of the MDC's rally was of the essence in terms of its
political programme
and any stoppage would derail the Tsvangirai camp's
lawful political
programme. The MDC lawyer said Jangara's objection to the
holding of the MDC
rally on February 18 was communicated too late after the
opposition party
had made final preparations, expecting "500 000 supporters
to
attend".
Elias Mudzuri, the party's organising secretary, said in an
affidavit
backing the application that Chihuri's conduct "ranks amongst the
most
brazen species of contempt of court . . . Their (police's) reaction
certainly brings the administration of justice into disrepute and undermines
the authority of the honourable court in the eyes of the public."
As
opposition groups seized upon rising political temperatures, the National
Constitutional Assembly (NCA) yesterday caught police off guard and staged
demonstrations in Harare, Bulawayo, Gweru, Mutare and Masvingo against the
police ban. The NCA, which had vowed to defy the ban, said 50 protesters
were arrested.
The Zimbabwe Congress of Trade Unions (ZCTU) announced
plans for a series of
national protests next week, saying it would ignore
threats by State
Security Minister Didymus Mutasa that any such action would
be "met with the
full wrath of the law".
FinGaz
Nkululeko SibandaStaff Reporter
THE ZANU PF politburo will
decide whether to allow the Zimbabwe National
Water Authority (ZINWA) to
take over water supplies in Bulawayo, a member of
the party's top body
says.
In a rare show of unity of purpose, ZANU PF heavyweights from
Matabeleland
have joined forces with Executive Mayor Japhet Ndabeni-Ncube
and the
MDC-dominated city council to oppose the planned ZINWA
takeover.
A decision by cabinet has given the water authority the greenlight
to assume
jurisdiction over water supplies in all cities and towns,
ostensibly to
lighten the burden for local authorities.
In an interview
on Tuesday, ZANU PF politburo member Dumiso Dabengwa said
while he
appreciated ZINWA's position, it was clear that the issue of water
supplies
"was beyond the authority's mandate". The politburo would therefore
discuss
the matter "at the appropriate platform."
"We held a meeting with officials
from the ministry (of water resources) who
were here a few weeks ago. They
told us that they were acting on a mandate
that was given to the authority
by the government.
"We told them that we saw no problem with the cabinet
directive, but we
hastened to highlight to them that since the order was
given to them from a
higher office, we as members of the ZANU PF politburo
would seek to discuss
the matter at the relevant platform, and that is at
politburo level," said
Dabengwa.
He said there could have been an
oversight when the cabinet made the
decision to transfer jurisdiction over
water supplies to ZINWA.
"This matter is not about simply taking over the
water supply from the city
of Bulawayo. There are very serious issues that
have to be dealt with before
the actual handover-takeover.
"One has to
look at issues of assessing infrastructure currently being used
to supply
water, evaluation of the infrastructure, as well as assessing
other water
provision channels that were being exploited by the local
authority.
"All
that is the homework that ZINWA still has to do before talking about
the
actual takeover of water supplies."
Dabengwa also said ZINWA had been tasked
with ensuring that the completion
of the Mtshabezi dam and that the
upgrading of aquifers near the city was
speeded up.
FinGaz
Clemence ManyukweStaff
Reporter
THE High Court has upheld the suspension of Chitungwiza
Executive Mayor
Misheck Shoko by Local Government Minister Ignatius Chombo
on the grounds
that he did not file an appeal against his dismissal within
the stipulated
period.
Chombo suspended Shoko last year on
allegations of incompetence, but Shoko,
who was elected on an opposition MDC
ticket in 2002, challenged the move,
saying it was politically
motivated.
In her ruling, judge president, Justice Rita Makarau said: "In
terms of the
rules, the first applicant must have filed his application for
review within
eight weeks of the date of the decision (to suspend him).
According to my
calculation, the eight-week period expired around February
19 2006. The
application before me was filed on March 6 2006, a week after
the expiry of
the eight-week period."
The judge said since the court was
dismissing Shoko's application on grounds
not raised by Chombo, there would
be no order pertaining to legal costs.
Shoko is the third elected opposition
mayor to be suspended by Chombo after
Elias Mudzuri of Harare and Misheck
Kagurabadza of Mutare. Chombo was the
sole respondent in the legal suit,
while Shoko, Collin Gwiyo, a councillor
in Chitungwiza, as well
as the
Chitungwiza Residents and Ratepayers Association, were the
plaintiffs.
Shoko had sought an order declaring that sections of the
Urban Councils Act
that Chombo invoked were unconstitutional. Shoko also
argued that due legal
process was not exhausted when he was suspended.
Chombo's actions were
"grossly unreasonable and motivated by political
malice", he said.
FinGaz
Kumbirai Mafunda
Senior Reporter
THE United Nations (UN) has launched a US$215 million
appeal for food aid
for Zimbabwe, amid grim projections that this season's
grain yields will
only represent half the nation's annual
requirements.
Zimbabwe requires about 1.8 million tonnes of maize to meet
its annual
domestic consumption needs but world crop monitoring agency, the
United
States Department of Agriculture Foreign Agricultural Service (USDA)
warned
this week that the country will only realise 850 000 metric tonnes.
This
would leave a deficit, obliging Zimbabwe to import food, exerting
further
pressure on what is left of its depleted foreign currency
reserves.
"Zimbabwe's 2006/07 corn crop plantings were delayed by weather and
input
shortages. As a result both the crop and the area planted will not be
up to
expectations. At this stage a crop of 850 000 metric tonnes from 1.3
million
hectares is expected, marginally lower than the 900 000 metric
tonnes
harvested in 2005/06 from a similar area planted. This will again be
well
short of domestic requirements," reads part of the latest USDA report,
entitled Zimbabwe Grain and Feed Update.
The USDA crop warning came as
the UN said it needed US$215 million to enable
its agencies to feed close to
two million Zimbabweans facing starvation. In
its latest humanitarian
appeal, the UN said more Zimbabweans are seeing
their livelihoods eroded by
an economic crisis that has further undermined
food security.
Out of the
UN's total appeal, US$62 million will go towards food aid
requirements. The
agricultural sector appeal is US$53 million. The rest will
be earmarked for
health, education, economic recovery, water and sanitation,
shelter and
non-food items.
In an executive summary of its appeal, the UN says the most
acute
humanitarian needs include
those of the populations affected by
food insecurity and cholera outbreaks,
and homeless groups affected by the
fast-track land reform programme, the
controversial Operation Murambatsvina/
Operation Restore Order - which the
UN says left more than 700 000 people
without shelter and jobless - and
victims of more recent evictions.
"The
2007 Consolidated Appeal aims to save lives, mitigate the impact of the
humanitarian situation on vulnerable populations, enhance positive coping
mechanisms and provide transitional support for the most vulnerable
populations at the household and community level. The Consolidated Appeals
Process (CAP) acts as a bridge between humanitarian assistance and
transitional support, and more sustainable initiatives undertaken by
development organisations. To this end, a total of 53 appealing agencies,
including UN organisations, national and international NGOs, community and
faith-based organisations, are requesting a total of US$215 million to
implement programmes and projects as part of the 2007 CAP," reads the UN
appeal.
Zimbabwe's controversial seizure of thousands of commercial farms
for
resettlement has been blamed for the country's food crises. Following
the
collapse of commercial agriculture after the land seizures, which began
in
2000, foreign aid groups have, through the World Food Program (WFP), fed
millions of starving Zimbabweans each year.
FinGaz
Staff
Reporter
RIOZIM has reported a 4 percent dip in output from its jointly
owned Murowa
diamond mine, and said record quarterly gold output in the
fourth quarter at
Renco Mine had failed to prevent a fall in total annual
gold production.
Murowa Diamond Mine, jointly owned by Rio Tinto and
ZSE-listed RioZim, saw
2006 production down to 240 026 carats from 251 000
carats of diamonds in
2005. RioZim told shareholders the fall was a result
of a weaker surface ore
body and worsening power cuts. RioZim said the
diamond dip had been
expected.
"This decline (in diamond output), which
was due to the exhaustion of the
richer surface ore body, had been predicted
and advised in 2005. The decline
in production was however exacerbated by
contractor plant breakdowns and
ZESA load shedding."
RioZim owns 22
percent of the diamond mine, while Rio Tinto, the former
parent company,
owns the remaining controlling stake. RioZim's share of the
diamond profits
was $485 million, up from $172 million in 2005.
The company was on a project
to mitigate the effects of the ore body
depletion with depth on the existing
operation to be implemented in
February.
RioZim said gold production at
Renco for 2006 was 740kg, lower than 753kg in
the previous year, hit by a
53-day breakdown of its primary mill. Gold
output in the fourth quarter, at
244kg, "was the highest quarterly output
for a while", the company
said.
RioZim is on a US$120 million expansion plan to lift output, but last
week,
there were fresh suggestions of a government takeover after President
Mugabe
made remarks in a state television interview that some took as
meaning
government would nationalise all diamond mining in the
country.
However, Nick Cobban, a spokesman for Rio Tinto, told Bloomberg:
"The word
nationalise wasn't used.''
RioZim chairman Eric Kahari warned
in a report to shareholders last year
that business at the mine would start
winding down in 2009 without the
planned expansion.
FinGaz
Stanley Kwenda Staff
Reporter
Parastatals stir to life once a year, to congratulate
president
PRESIDENT Robert Mugabe celebrated his 83rd birthday last
week with
elaborate feasting at State House and Gweru's Mkoba Stadium, where
he was
presented with a range of unusual gifts, including a bus, a stuffed
crocodile and a heifer.
And, as if failure to fete the head of state
would attract the death
penalty, bankrupt state companies led a stampede to
flight gushing
advertisements in the press..
Some of the struggling
parastatals that fell over each other to be the first
to have their
congratulatory messages published were the National Railways
of Zimbabwe
(NRZ), the Zimbabwe Electricity Supply Authority (ZESA), and the
Zimbabwe
Water Authority (ZINWA). Ziscosteel said it had been "inspired" by
the
President's wise leadership, the Zimbabwe United Passenger Company
(ZUPCO)
wished him "a longer journey", and the National Oil Company of
Zimbabwe
(NOCZIM) concluded its message with its rather comical motto:
"NOCZIM:
Fuelling the nation".
But the newspapers had nothing to complain about, as
the flood of birthday
messages meant easy pickings for them. A full page
advertisement in a
broadsheet costs $6 million while an equivalent placement
in a tabloid goes
for $4 million . The cost of a half- page advertisement is
enough to cover
the salaries of 10 senior teachers.
The glut of messages
provided an insight into how essential political
patronage is, for business
in Zimbabwe.
But the controversy over the huge costs notwithstanding, it was
the contents
of the advertisements that really caught the eye. Most of the
messages had
more to do with grovelling to the President than merely wishing
him a happy
birthday.
The Ministry of Higher and Tertiary Education,
which was recently on the
receiving end of critical remarks by the
President, posted a message
reading: "We humbly request Your Excellency to
exude more light to guide the
entire nation, including students in higher
and tertiary education. Let the
joy that comes with this celebration follow
you as you provide visionary
leadership to Zimbabwe."
The Ministry of
Local Government, Public Works and National Housing waxed
lyrical: "Wind
blows from all angles and at many speeds, weathering wood,
smoothing edges,
but Gushungo, you have been able to withstand all gales."
The Harare City
Council was "inspired by your visionary leadership" in its
bid to turn
around "the fortunes of Harare."
Parliament said: "As a revolutionary,
outstanding nationalist, you are a
role model to progressive forces
throughout the world. You have also
championed the causes of the downtrodden
everywhere through your dynamic
leadership. Gushungo, yours is a shining
example of a life worth
celebrating."
The ZANU PF Harare province placed
its congratulatory message in The Herald
on Tuesday, almost a week after the
birthday, probably as an afterthought.
Some messages were in bad taste.
An
individual took out an advertisement asking the President to celebrate
his
birthday by arresting opposition leader Morgan Tsvangirai: "Makorokoto
baba.
Sungai chematama icho, chishamwari chaBush naBlair, Tsvangirai.
Sungai."
An aptly named company, Wack Industries, said: "Mukuru mukuru
hanga haigari
bvunde."
"What else would one want from a leader blessed
with Solomon's wisdom, Cde
Bob you are the best," proclaimed another
personal tribute to President
Mugabe.
Then came the Grain Marketing Board
(GMB), which tended to confuse happy
birthdays and welcomes. Said Samuel
Muvhuti: "All of us are happy to welcome
our new Minister of Agriculture Cde
Rugare Gumbo. We wish you limitless
success in your new office as we work
together to ensure national food
security."
But the prize goes to The
Herald. The paper was literally speechless. So it
published a picture of a
bronze bust of the President, saying only icons
could describe his
contribution to Zimbabwe, because it was "immense and
cannot be captured in
finite syllables". Hailing the President's "enduring
legacy of principled
oratory", the paper declared : "The celebration of the
President's birthday
is a celebration of life."
FinGaz
Personal
Glimpses with Mavis Makuni
I REMEMBER once reacting with incredulity upon
reading a story in an
international newspaper about a study that had been
commissioned by the
mayor of an obscure small town somewhere in
Europe.
The mayor, who was either an ardent advocate of gender
balance or a crafty
campaigner for the female vote for his next bid for the
job, had ordered a
study to be conducted to establish whether it was true
that the majority of
the males in the town did not help their wives with
household chores. I
could not believe that this mayor was causing money to
be spent to establish
a reality that was already self-evident. All he would
have needed to do to
satisfy his curiosity was to visit a number of families
at random without
prior notice to see for himself what went on. I felt that
the budget he
allocated for research to be conducted would have been better
spent if he
had earmarked it for the establishment of subsidised day care
centres or
free laundry or house cleaning services. Availing such services
to the
town's harassed and overworked housewives would have been more
meaningful
than confirming an already self-evident truth.
I experienced a
similar sense of disbelief recently when it was announced
that the Ministry
of State Enterprises, Anti-Monopolies and Anti-Corruption
is to spend US$800
000 on a baseline survey on graft. The survey was
officially launched by the
new head of the ministry, Samuel Undenge, who was
appointed to the portfolio
when President Robert Mugabe undertook a mini
reshuffle of his unchanging
cabinet recently. Undenge said his ministry
would provide the necessary
support to ensure success in the implementation
of the baseline survey.
"Whatever solutions we come up with to fight
corruption, for them to be
effective, they have to be based on findings of
scientific empirical data,
hence the need for such research," a
state-controlled newspaper quoted
Undenge as saying.
The survey is reportedly expected to define corruption in
the Zimbabwean
context, analyse existing legislation and the institutional
framework
"forming part of the anti-corruption mechanism and its
effectiveness in
achieving the objective of fighting corruption in public
life." I find all
this hard to believe in the prevailing suffocating
situation in Zimbabwe
where one could see corruption and avarice with one's
naked eyes closed. In
these untenable circumstances, the top priority should
be to tackle the
rampant cases of impropriety that have been exposed so far
rather than
divert attention from them by embarking on a study that has a
foregone
conclusion. The survey will take almost a year to complete, during
which
time the ministry will no doubt fold its hands while the looters of
national
wealth and resources redouble their activities.
Since its
establishment almost four years ago, this ministry has proved to
be a big
letdown because of its failure to tackle corruption in the public
sector.
Events since the first Anti-Corruption Minister, Didymus Mutasa, was
appointed in 2002, have lent credence to public complaints that the
government's anti-graft crusade is in fact a charade designed to shield
corrupt fat cats in officialdom.
Since the crackdown was launched, only
relatively small fish and petty
offenders from the private sector have been
netted despite the existence of
well known scandals involving top
politicians and government ministers.
During Mutasa's tenure the multiple
farm ownership racket, the looting of
the War Victims' Fund and the abuse of
the VIP Housing Scheme were already
public knowledge but there was no
attempt to bring the culprits to book.
Instead of sending out a clear signal
that he would sink his teeth into his
new assignment without fear or favour,
Mutasa made the confounding statement
on national television that all those
who knew they were involved in corrupt
activities should approach his
ministry and "confess their sins". If these
wrongdoers gave themselves up
before the ministry went after them, their
sins would be forgiven.
Naturally, in the midst of the copious rhetoric and
hype that surrounded the
launching of the government's anti-graft crusade,
even a fool would have
found it difficult to believe such a cock-and-bull
story. Mutasa was
obviously buying time so as to do nothing about corruption
in high places.
Not surprisingly, he was reshuffled from the ministry
without recording a
single success. He never gave the nation feedback on the
response to his
call for confessions so that the public could have an idea
how many
influential and powerful crooks had been let off the hook.
His successor,
Paul Mangwana's tenure as the head of the ministry was
characterised by the
unearthing of even more shocking corruption involving
government and ruling
party bigwigs. The new scandals included the looting
of equipment from
Kondozi Farm, the abuse of subsidised farm inputs and
fuel, the corrupt
allocation of stands to relatives and friends under the
Garikai/Hlalani
Kuhle hosing scheme, the looting of ZISCO, illegal gold
mining and the
hottest one, the diamonds racket.
Details about the involvement of ministers
and other high- ranking
government and ruling party officials in these
corrupt activities have been
reported extensively in the press. Even the
head of state, President Robert
Mugabe, has conceded on several occasions
that the hands of some of his
ministers are not clean. He memorably
complained at a ruling party meeting
one time that he was surrounded by
thieves. In a television interview to
mark his 83rd birthday recently, he
complained some more about some of his
ministers being involved in the
illegal mining of gold and diamonds and
focusing only on enriching
themselves.
But incredibly, Mangwana, like Mutasa before him, remained
catatonic in the
face of this mounting evidence of corruption in the
corridors of power.
Mangwana's "outstanding" achievements during his tenure
include organising
anti-corruption workshops, marches and jingles. At one
anti-corruption
workshop in October 2005, Mangwana was quoted as saying:
"There should be no
preferential application of the law since no individual
should be above the
law on the basis of their relations with the powerful
and mighty or the
filthy rich, let alone on the basis of their political
affiliation." One
wonders what Mangwana has to say today after spending two
years engaging in
subterfuge so as to avoid confronting the scourge that has
enabled the
powerful and influential to enrich themselves beyond their
wildest dreams at
the expense of the rest of the people.
And now we have
Undenge starting his tenure as Anti-Corruption Minister by
virtually
declaring an indefinite truce in the anti-graft war before he has
even
settled down in the portfolio. It is almost guaranteed that during the
next
year or so when the baseline survey is underway, nothing will be done
about
the old and new cases of corruption in the public sector. And before
we know
it, it will be time for another cabinet reshuffle and a new minister
will
move in to start all over. In five or six years' time, nothing will
still
have been done. Instead, the greedy will have become bolder in their
looting
of national resources that should benefit all Zimbabweans. The $800
000 to
be spent on the baseline survey is money down the drain. It would be
more
plausible to earmark those funds for a more worthy cause, such as
reviving
the health delivery system.
FinGaz
QUESTION
(Q): Who are the NBA? ANSWER (A). The NBA is an umbrella
organisation for
all bread manufacturers in Zimbabwe and is an affiliate of
the Confederation
of Zimbabwe Industries (CZI).
At the peak of membership in 1998 it had a
total membership of around 700.
This number has since gone down to about 300
due to closures and other
reasons mainly related to viability. The industry
is currently facing
serious viability problems and its future hangs in the
balance, with
capacity utilisation now less than 30 percent.
Q: In your
opinion, what can be done to save the industry from collapse?
A: The baking
industry is an agro-based industry and its survival is
anchored on three
basic pillars, which are:
1. Availability of raw materials (wheat). The
industry requires plus 400 000
metric tonnes of wheat per year in order to
supply adequate bread to the
nation. For three years now wheat production
has fallen far short of this
target. The solution lies in making the bakery
industry participate in the
agrarian reform programme by funding wheat
farming through contract farming.
For the industry to do this, we need to
capacitate the industry first by
giving them viable prices for their product
so that they are able to plough
back their profits into wheat farming.
2.
While bread remains a controlled commodity, 90 percent of bread input
costs
are not controlled. Applications for bread price reviews have either
not
been readily understood or in most cases not speedily dealt with. This
had
often resulted in bakers having to incur huge operational losses.
Government
must seriously consider removing controls on bread in line with
what they
have done on wheat where the Grain Marketing Board (GMB)'s subsidy
had been
withdrawn.
3. Availability of spares and machinery. These require foreign
currency,
which is not available. However those industry members with free
funds must
be allowed to import machinery duty free.
Q: Have you raised
these concerns with the responsible authorities and, if
so, what was the
response?
A: The issues have constantly been discussed or raised with the
authorities
and we believe efforts are being made to address some of
them.
Q: You are pushing for another price increase less than two months
after
being awarded another price review. Why didn't you anticipate the cost
build-ups for the sake of price stability?
A: I do not think we can talk
of price stability in an inflationary
environment such as we have in this
country, where prices change by the
hour. However, the fact of the matter is
that the price that was gazetted in
December 2006 coincided with a decision
to remove the GMB's wheat subsidy,
which pushed the price of flour from $120
000 per tonne to $610 000 per
tonne. The reviewing committee on bread
pricing appears to have focused its
attention on flour only and failed to
take into account other input costs,
which had gone up quite considerably.
This resulted in the committee
awarding a bread price that was far less that
the cost of manufacturing
bread at the time, hence bakers' request for
another price review soon after
the gazette under notice was
announced.
Q: Apart from the pricing issues, are there no other variables
that your
industry can play around with to make bread affordable to the
consumer, such
as reducing unnecessary overheads?
A: The industry
continues to determine and implement various cost cutting
measures and it is
precisely because of these innovative efforts that we are
still able to
provide some semblance of service to the consumers despite the
problems the
industry is experiencing. Ours is no mean feat and history will
one day bear
evidence that we tried all in our power to keep bread on the
shelves against
odds that would have dismayed many an industry. The
situation could be less
painful if government were to make available cheaper
fuel to the industry as
it has done to farmers.
Q: At the price levels proposed by your association,
are you not running the
risk of getting to a stage where consumer resistance
can start to creep in,
thereby destroying the sector?
A: I am aware that
any producer runs the risk of consumer resistance if his
or her product
becomes too expensive. However, bread in Zimbabwe remains the
cheapest in
the region in terms of pricing. Bread in most countries costs an
equivalent
of US$1 and in South Africa bread costs five rand. The point to
consider is
to come up with a balance between affordability and viability.
We firmly
believe that people should be paid reasonable wages to be able to
at least
afford food. The closure of a production plant due to viability
problems
does not help the cause of consumers, as it is them who suffer when
the
product is not available in the first place. There is need to have
policies
that protect the vulnerable groups against the vagaries of
inflation other
than price controls. Other countries provide meal coupons
for such groups
or, alternatively, the rich subsidise the poor.
Q: We are aware that there
are two bakeries operating in your industry
producing bread at well below
the gazetted price. How come these bakeries,
facing the same problems, are
selling at these prices?
A: Officials from the institutions that you have
alluded to have attended
our meetings in the past and are in full agreement
with the costing model
that we use when seeking a price adjustment. I cannot
comment as regards to
their marketing strategies and various discounting
methods they avail to
their customers, as it is normal that a company may
choose to make a loss in
order to position themselves in the market. Suffice
to say that our industry
views competition as healthy and we welcome the
arrival of any new
competitors.
Q: There is talk that your push for a
price increase could be a political
move, meaning it is meant to raise
people's anger against the government.
A: Nothing could be more mischievous
than that and I think that kind of
nonsensical talk should be dismissed with
the contempt it deserves. Quite
the contrary, the baking industry in the
past is one of the few industries
that have kept their machines running
during stayaways. We have done so not
because of any political
considerations but purely because we believe we are
a critical service
industry whose commodity is essential to the health and
indeed livelihoods
of our populace.
Q: A survey by the Consumer Council of Zimbabwe (CCZ) came
up with
astounding revelations that none of the major bakeries is in
conformity with
the prescribed weight of bread, which is 700 grammes.
Recently CCZ chairman
Phillip Bvumbe gave your members three days to rectify
this anomaly. Has
this been done?
A: As an association we recognise the
CCZ's role and we have engaged them on
the issues they raised and I am happy
to say they now appreciate the serious
problems surrounding bread as a
product. For the record, let me point out
that the current general malaise
in the bread industry arises from the cost
of producing the standard loaf
which has risen to more than $1 600 before
overheads are included. This is
the same loaf that should be sold at a
controlled price of $722. One way out
of the present impasse is to allow the
introduction of various brands of
bread that accommodate consumer choices in
terms of affordability, quality
and tastes.
Q: It has not just been the question of weight alone, but other
issues such
as packaging, the quality of the bread itself.
A: The NBA is
not proud of the quality of bread on the market. The standards
have
continued to deteriorate over the years and we are working hard as an
association together with the authorities to improve the situation. I must
say though that bread as a product is a function of many inputs; a defect in
any one input can result in a poor product. I am positive that the issue of
quality can easily be addressed once the problem of cost of inputs and
availability is addressed. One sure and quick way to improve quality is to
free the market and allow competition. Those with poor products will soon
find themselves without customers.
Q: You have been throwing around
figures relating to your costs structures.
How do we know that these are not
thumb suck figures?
A: The NBA has conducted its business in a very
transparent manner. Each
figure that we have put across to government has
been backed by an official
receipt or invoice from reputable companies and
these can be verified.
Q: What are your views on the proposed social
contract?
A: The NBA buys into that and we stand ready to cooperate and play
our part
if and when we are called upon to do so.
FinGaz
Comment
BY March 2006,
in a move that stirred controversy and political ridicule,
the Reserve Bank
of Zimbabwe (RBZ) had paid a cumulative US$210 million in
General Resources
Account (GRA) funds that the country owed to the
International Monetary Fund
(IMF).
The objective of the politically opposed payment was to
placate the IMF and
avert what could have been an inglorious exit from the
most influential
international lender through expulsion. The regaining of
Zimbabwe's voting
and other related rights was, at that juncture and in
essence,
inconsequential. To that end, the repayment achieved its goal. The
IMF did
not slam the door on Zimbabwe.
But that the IMF did not take any
precipitous action against Zimbabwe did
not mean that the country was out of
the woods, which is why the cautious
monetary authorities warned at the time
that the paint was still wet for
Zimbabwe to lean against the wall. Critical
balance of payments remained on
ice, voting rights were not restored and
Zimbabwe, with all its payments
difficulties, was not eligible for the IMF's
Multilateral Debt Relief
Initiative which last year benefited, among others,
countries such as Benin,
Bolivia, Burkina Faso, Cambodia, Ethiopia, Ghana,
Guyana, Honduras,
Madagascar, Mali, Nicaragua, Niger, Rwanda, Senegal,
Tajikistan, Uganda as
well as Zimbabwe's fellow SADC member states,
Mozambique, Tanzania and
Zambia.
And predictably, the Fund, which lends
to countries with balance of payments
problems, last week maintained its
suspension of financial assistance to
Zimbabwe mainly because the country
has failed to implement sound economic
reforms. But a lot is said by the
unsaid. And what the IMF implied but did
not declare openly was that
Zimbabwe is no longer part of its global plans
not only because of its
failure to implement austerity measures but also
because of its pariah
status.
Despite Zimbabwe's political posturing, we have consistently warned
against
a fallout with the IMF, which is why we categorically stated, in our
comment
of January 12, 2006 that Zimbabwe should swallow its pride and seek
a deeper
rapprochement with the Bretton Woods institution.
Yes, the
Zimbabwean government, if the utterances of Cabinet ministers are
anything
to go by, considers the IMF a self-appointed international central
bank or a
powerful and disapproving political institution - a lap dog of the
US
government's cowboy capitalism. A US government pawn or not, the fact
remains: the IMF is a powerful and influential international player whose
opinions of any given country are respected and influence foreign investor
decisions. And Zimbabwe's increasing isolation and the foreign investor
stampede for the exits should be seen against this
background.
Admittedly, considering the country's external support
requirements, what
the IMF itself can give Zimbabwe as balance of payments
support could be the
proverbial drop in the ocean. But its very presence is
widely seen as a seal
of approval and could therefore trigger a massive
inflow of external funds.
Thus the Fund is a necessary evil Zimbabwe should
embrace. In any case, the
end will justify the means.
It is instructive
to note that most countries under the IMF are currently
not borrowing from
the institution. Still, these countries, big and small,
cherish and
jealously guard their membership of the IMF. This is precisely
because of
the direct signalling effect such continued membership has to the
investor
community.
Not only that but such membership is also particularly important
for
troubled economies such as Zimbabwe because more and more donor and
other
humanitarian funds are being indexed on an individual country's
standing in
global financial institutions, of which the IMF is a critical
one.
Is this so difficult for the Zimbabwean authorities to understand? Why
then
are they digging in their heels on the implementation of broad and
sound
structural reforms around the management of the budget deficit,
interest and
exchange rates, all of which impact on inflation and the
stability of the
economy in general?
In any case, it is not as if
Zimbabwe would swallow IMF proposals hook, line
and sinker. The Fund does
not have effective authority over the domestic
policies of its members. It
is in no position to force a member country to
spend more on hospitals or
less on buying military aircraft or constructing
grandiose presidential
palaces. There is always room for consultations so
that at the end of the
day, the specifics of the reform programme adopted,
are the respective
members'.
If this is so, why is it so difficult for Zimbabwe to normalise its
relations with the Fund to open the doors for the country's re-integration
into the broader community of nations? After all, metaphorically speaking,
no country is an island. That's the bottom line.
FinGaz
National Agenda with
Bornwell Chakaodza
Governor paints a picture of a profoundly depressing
scenario
IF there is one thing that stands out reflecting the general
decay in our
country and the extent to which all segments of the Zimbabwean
economy are
in shambles and urgently in need of drastic surgery, it is the
dossier of
despair that was presented to the Parliamentary Portfolio
Committee on
Defence and Home Affairs by the Reserve Bank of Zimbabwe
governor Gideon
Gono on Tuesday this week.
Add to that the more than 80
percent unemployment in the country, the daily
price increases of most goods
and services, the continued suspension of
Zimbabwe by the International
Monetary Fund (IMF), the extension of
sanctions against the country because
of its poor human rights record
including the recent crackdown on opposition
parties and the ban on
political rallies and peaceful demonstrations - then
you have a picture of a
country that is profoundly depressing.
Giving
oral evidence on Tuesday before the Committee already referred to,
Gono went
to great lengths in painting a picture of government departments
and
parastatals that are now universally acknowledged to be terminally ill.
Said
the central bank governor:
"I would receive an SOS from the National Oil
Company of Zimbabwe, saying
there was no fuel; and the next hour, another
urgent call from the Ministry
of Health and Child Welfare, requesting for
funds to import drugs.
"In the next hour I would receive a call from Air
Zimbabwe, saying they had
not paid their aviation fees. They would say,
Governor, we have no Jet A1
fuel and we have no money to feed the people on
the plane.
"The next is a call at 4pm from ZESA Holdings saying, Governor, in
the next
one hour if you don't give us money, the nation will be in
darkness.
"Towards 5pm, I get a call which says the National Railways of
Zimbabwe
(NRZ) has no money which it requires to ferry coal from
Hwange"
The central bank chief concluded: "The list goes on and on and I
could wail
where you are crying."
Money, money, money, money to do this
and that, but nowhere to be found. Not
that it can not be found, no. It can
be. But because of the intransigency
and useless bravado of the political
leadership which believes that they
alone must eat and eat, the money for
the rest of us mere mortals can not be
found. The mindset of those in power
might not be that easy to change but
they must realise that the
long-suffering people of Zimbabwe are paying the
price for their meaningless
macho and bravado.
How does one explain a situation in which a Cabinet
minister says in the
same paragraph, if not the same breath, that the recent
extension of
sanctions against Zimbabwe by the European Union is a non-event
but that the
suffering of ordinary Zimbabweans is a direct result of these
"illegal"
sanctions. The word "illegal" not mine but his.
Is this not
indicative of a government which is totally confused and does
not know what
to say, how to respond to the EU and what solutions to try to
hammer
out?
Hear once more what another Cabinet minister said not a long time ago,
2004
to be precise: "What you are saying is," he told a Congress of Zimbabwe
Industries (CZI) meeting," let us go back to the conditionalities of the IMF
and the World Bank, no, we are doing well without them".
Again, is this
not indicative of this government's failure to understand
what business is
all about and what drives investment? Without attracting
foreign direct
investment, is there any hope of turning around the fortunes
of this
country? The answer is obviously a big No.
Without balance of payments
support from both the IMF and the World Bank,
can the war on inflation be
won, really won? The answer again is a big No.
Without a global outlook on
our part and becoming part and parcel once again
of the community of
nations, can we survive as a country, small as we are?
The answer is a big
NO.
Why then should Sikhanyiso Ndlovu, the new Minister of Information and
Publicity, the man who dismissed the extension of sanctions by the European
Union as a non-event fail to see the massive contradiction when in the same
breath he attributes the suffering of Zimbabweans to the same
sanctions?
Why should Samuel Mumbengegwi, the new Minister of Finance, of all
portfolios and of all people be so illiterate financially and business-wise
as not to understand and appreciate the linkages between high expenditure
and the poor performance of export sectors on the one hand and the lack of
balance of payments support on the other. The mind boggles - really boggles!
And to think that these two gentlemen are in charge of the finance and the
public relations arms of government. Ah! The mind really boggles!
Is it
any wonder therefore that we are not going anywhere as a nation with
such
custodians of critical portfolios of government. I find it quite
worrying
that we have such pilots piloting our country in such critical
areas.
Genuinely worried! The point that needs to be made here is that
without
acknowledging and addressing the root causes of our predicament, the
current
crisis will not go away. We need, as a country and as a government,
to face
this brutal truth.
In this hyperinflationary environment of ours, costs of
production as well
as the prices of goods and services will continue to
skyrocket. Real wages
will continue to fall exponentially. Real incomes will
continue to stagnate.
It does not matter what salaries you come up with to
cushion teachers,
nurses, doctors, the judiciary, civil servants as a whole
and indeed
employees in the private sector and elsewhere - you can never
cushion them
enough from the ever-rising cost of living. This is the plain
truth and only
a fool can not appreciate this.
The old mantra on the part
of the government and ZANU PF that we can go it
alone or that the Look East
policy is bearing fruit is not only misguided
and naïve but downright
untrue. It is apparent and clear to everybody that
we have no choice but to
engage constructively both internally and
externally. It might be a bitter
pill to swallow for President Mugabe and
some elements in ZANU PF but this
bitter pill must be swallowed for the sake
of Zimbabwe.
I am all for
going to Namibia as a friend and fellow Southern African
country but at the
same time I know for sure that economic and
business-wise, I get very little
if not nothing from there. Politically and
perhaps personally, I will gain
something but then people in Zimbabwe as
elsewhere around the world do not
eat politics - even for a minute.
Zimbabwe must now move on. Improving the
working conditions and salaries of
all employees across the board is okay
but is no different from offering a
few bandages here and there. What we
need is a cure for the disease. As
Governor Gideon Gono rightly put it to
the Parliamentary Portfolio Committee
on Defence and Home Affairs: "This
nation needs to go back to the basics and
ask whether it is doing justice to
future generations."
Are we indeed doing justice to the future generations of
this country after
we are all gone? I think we all know what needs to be
done to take Zimbabwe
out of this current abyss of political and economic
despair.
borncha@mweb.co.zw
FinGaz
Economic Viewpoint with
Vincent Gwarazimba
THE ZANUPF government never fails to come up with
surprises that are mostly
desperate attempts to save face from a failed land
reform initiative. Below
is a chronicle of surprises that are well
documented.
First was the land reform exercise itself. Embarked as a
desperate attempt
to save declining support and revenge against a
constitutional referendum
loss. As a result the land reform was often
chaotic, violent and partisan.
War veterans and ZANU PF supporters went on
the rampage, destroying a sector
so important to our agro-based economy. If
the objective of the land reform
was to redress the imbalance in land
ownership, surely ZANU PF had all the
time to do it since 1980. Why 2000?
Why that year, month, day, hour and why
at all use violence? As patriotic
citizens we have a right to know the
emotions behind this violent behaviour.
What happened with land reform was
not a national agenda but expediency
driven by a natural violent group of
people hiding behind the
Chimurenga.
The second surprise was the introduction of the agrarian reform,
launched
and advertised amidst pomp and fanfare. It is surprising that there
are some
of us who purport to be patriotic but connive with destroyers of
our very
livelihoods, providing song and dance to speed up the destruction.
This
agrarian reform, giving farmers finance and inputs without
accountability
was indeed a surprise. A surprise to those who abide by the
law and "manna
from heaven" for thieves and corrupt officials. It was
evident at the time
the agrarian reform was launched that massive properties
went up in the
leafy suburbs of major towns. Money and inputs for
agricultural production
was diverted to urban development. Hence the finance
and the inputs failed
to produce enough food for the nation. Now the same
ZANU PF government has
withdrawn support for A2 farmers. These farmers have
to stand on their own.
These are interesting developments as these are the
same farmers who abused
the input and finance support. After all they are of
little significance in
the ZANU PF support base.
Another surprise was
Operation Maguta. Members of the armed forces whose
mandate is to provide
security to the country (now that we are threatened by
the West) are drafted
into agricultural production. Why should the army get
into farming when land
reform harnessed "competent" Zimbabweans into
farming? What has happened to
the perceived planting of four million
hectares of maize by the new farmers?
What has happened to the projected
"doubling of tobacco and wheat
production?" These are questions which can
only be answered by the
government.
Certainly this is a government not answerable to its people but
to itself.
As we can see now Operation Maguta has failed to produce enough
food.
Instead government is forcing people to deliver their maize to the
Grain
Marketing Board (GMB) and claim this is a result of the operation. It
is
important to note that when the nation produced two million tonnes (prior
to
land reform) of maize, it was not from a single operation like Maguta,
but
from efforts spread across the country, coming from individual farmers
who
had the motivation to farm.
Now we have another eyebrow-raising
surprise. ZESA is going into contract
farming. While the motive - to
generate foreign currency - is noble, the act
is a sign of desperation and
lack of trust. ZESA is a power utility not an
agricultural organisation.
What makes ZESA think they can succeed where ARDA
failed? If government
wanted more direct production of tobacco, ARDA is
there but because the
latter has become a part of the ZANU PF and is riddled
with corruption, it
will be a waste of public money to finance it. But alas,
ZESA has failed to
generate and supply adequate power to the country (their
core business), so
why go into agricultural production? Agriculture is even
more complicated
than power generation. ZESA will need to set up an
agribusiness division,
hire experts in tobacco agronomy, offices and
vehicles and all this will
cost money. If ZESA's nemesis is coal supply,
this money could be channelled
to Hwange Colliery as a loan to increase
production. This adventure is a
further indication that in its panic, ZANU
PF is running around like a
headless chicken.
ZESA is now also involved in tourism in a joint venture
with the National
Parks Authority all in the name of generating foreign
currency to pay for
power. The answer does not lie in imports. The solution
lies in sanity and
more refined thinking. Running a country needs sobriety
and responsibility.
Another new surprise is that of TelOne venturing into
agriculture to
generate foreign currency. From phones to agriculture, that
will be a
mammoth task. Surely the nation needs a break from this
circus.
The private sector is also encouraged to get involved in contract
farming.
For which crops? Not maize and wheat unless the government does
away with
Statutory Instrument 235A of 2001. The SI qualifies who should buy
and move
maize and wheat, the Grain Marketing Board. These are food security
crops
and the trade monopoly as specified by the SI restricts production.
Why
should the private sector contract farmers to produce crops which they
cannot move or trade in and crops which they are very likely to lose if the
ZANUPF government decides to apply the standing law (statutory
instrument).
ARDA is an organisation well positioned for national food
security with a
potential of over 50 000 hectares of land at it disposal and
yet it can
hardly make an impact on production. The ZANUPF government has
thrown money
into the organisation but not a cent of the money can be
accounted for.
If these people were working hard and were an accountable to
the
organisation, there is no doubt ARDA could be playing its national role
in
food security. Perhaps these professionals are posted elsewhere but are
paid
by ARDA. The only responsible authority who can stop our speculation on
what
is happening at ARDA is the former Minister of Agriculture, whose
failure as
CEO of ARDA is well documented.
lDr Vincent Gwarazimba is MDC
Deputy Secretary for Lands and Agriculture
The Zi mbabwe Economics Society
articles are coordinated by Lovemore
Kadenge. He can be contacted on email
lovemore.kadenge@gmail.com, +263
91
980 016.
FinGaz
No Holds Barred with Gondo
Gushungo
I HAVE said it time without number. The ruling ZANU PF
government, most, if
not all of whose members should be subjected to an
impartial wealth probe,
is selling us a bill of goods, that it is committed
to curbing deep-seated
corruption.
To the uninitiated, all I am saying is
that the government has been making
us believe something that is not true
about its much-vaunted anti-corruption
drive.
It might have succeeded for
some time to maintain a façade of determined
effort to rid the country of
the corruption scourge. But it is now easy to
drive a coach and horses
through those claims. If anything, for the
government, which is always keen
to keep a lid on anything that stinks,
corruption in high places is
something it wants a veil drawn over. Forget
its political posturing to the
contrary.
Examples abound. But just to cite one, let me focus on the
long-standing
economic free-for-all in the mining sector where the country
is losing a
shocking US$50 million a week through the smuggling of diamonds,
gold and
other precious minerals. It is like a feeding frenzy in a zoo. And
for as
long as I can remember, the culprits, whose abuse of political power
knows
no bounds, have always enjoyed unfettered impunity.
Almost two
years ago, this paper reported on a spate of mysterious robberies
involving
platinum from Zimplats and Mimosa Platinum Mines as well as nickel
from
Bindura Nickel Corporation. Most of these happened in South Africa. The
hijackings of mineral cargo from Zimbabwe in neighbouring South Africa was
blamed on sophisticated syndicates with an ability to re-export the platinum
matte abroad.
Accusing fingers were pointed at local company officials
and the untouchable
influential politicians known to be corrupt to the dregs
of infamy but have
always got away with murder. The frequency of the heists
and the seemingly
inconclusive investigations gave credence to such
accusations. The
government's deafening silence did not help matters either.
While silence
cannot be misquoted, it can as sure as hell be misinterpreted,
as is the
case with the latest wave of disruptive farm invasions.
Then
last year Obert Mpofu told Parliament that ZISCO was a cesspit of
corruption. The story was picked up by almost every publication. But he was
hauled over the coals by his colleagues in ZANU PF including the insecure
and ill-poised writer of The Other Side column in The Herald, the
hail-fellow-well-met Nathaniel Manheru who is right next to the centre of
power. The government apologists were falling over each other to dismiss the
reports on ZISCO, sourced from the Parliament of Zimbabwe, as inaccurate,
biased, superficial and sensationalised, seemingly oblivious of the fact
that the truth will out.
I have no brief for Mpofu. And as I have said
before, he is one of the many
senior government officials who sometimes lack
the gumption to realise the
implications of their gaffes. But it is
inconceivable that he could
deliberately lie to Parliament. And at the risk
of repeating myself let me
say, predictably, like an oil spill, the ZISCO
scandal has been slowly
spreading, tarring a growing list of all those
enjoying the sweet crumbs of
power falling from the high table.
And
before anyone could say Jack Robinson, we have yet another attempt at
denial
of the involvement of senior politicians in the illicit gold and
diamond
mining. But this is hardly surprising. Denying the obvious is as
natural to
the ruling ZANU PF politicians as it is for crabs to walk
sideways.
In
the case of illegal gold and diamond mining, no less a person than the
police number two man, Deputy Commissioner Godwin Matanga testified before
the Parliamentary Portfolio Committee on Mines, Environment and Tourism, not
only that politicians, MPs and ministers are involved in illegal gold mining
activities but that they are also interfering with the clampdown on the
racket, code-named Chikorokoza Chapera. Matanga would not have made such
serious accusations without incontrovertible evidence. Smoking guns are
lying everywhere. The small-scale miners themselves said as much.
And a
senior Reserve Bank of Zimbabwe official, Mirirai Chiremba saw to it
that
journalists were barred from a hearing where he was giving oral
evidence to
the same committee on Operation Chikorokoza Chapera. He claimed;
"Because of
the nature of my job I do not think it is suitable to have the
Press here. I
do not wish to say anything that will cause instability in the
country . . .
"
What exactly was he saying other than that the establishment, responsible
for the stupefying complex, pattern of deceit, fraud and criminality
characterising all sectors of the economy was afraid of what might come out
in the wash? Yet we have the acting chairperson of the portfolio committee,
Tsitsi Muzenda saying: "Honestly they (RBZ) are saying there are really no
godfathers . . ."
Ave Maria, Mother of Jesus Christ! Pardon my French but
how absurd,
ludicrous and preposterously insincere can one get? Chiremba's
message was
clear. The issue was politically sticky and he did not want to
open a
Pandora's box. Which part of that did Muzenda not understand or
thought we
did not understand that she needed to interpret it for us?
She
could've fooled us. But such political machinations betray a lack of
unshakeable political will to deal with corruption. The lack of political
commitment to fight corruption can also be explained by the paucity of
action from the Anti-Corruption Commission, which has been sitting idly with
seeming impotence. Thus I have previously gone as far as saying that under
the ZANU PF government, the Commission is a sheer waste of time and
resources.
And I have my reasons. By compromising the principle of
equality before the
law through giving directives on prosecutorial and
investigative decisions
in corruption cases from above, the government is
unwittingly putting
quicksand under the feet of the Commission. It is
therefore not surprising
that some corrupt politicians tried to trip the
Commission up at its very
first step.
Hence the sinking feeling that
despite the noise surrounding the plunder of
the country's mineral wealth,
the case will be swept under the carpet, just
like the abuse of the VIP
Housing and the financial jiggery-pokery that went
unpunished at the War
Victims Compensation Fund.
Yes, government claims that it will pursue
corruption in gold and diamond
mining to its full expression. Chance would
be a fine thing! That's what I
say. You don't believe me? Then let's wait
and see. Other than the nobodies
arrested so far, how many ministers, MPs
and politicians will be brought to
account? Or are they so clean?
Police chiefs contravened POSA
EDITOR - "Police ban political
rallies for 3 months in Harare South
Districts and Mbare", read a headline
in a daily paper last week. The police
officials announcing the ban, Tsitsi
Sadzamari, a superintendent and a Chief
Superintendent Thomsen Jangara went
on to quote sections of POSA which allow
them to effect this condemned piece
of legislation.
Section 27 of POSA states in part: "If a regulating authority
for any area
believes on reasonable grounds that the powers conferred by
sections 25 and
26 will not be sufficient to prevent public disorder being
occasioned by the
holding of public demonstrations or any class thereof in
the area or any
part thereof, he may issue an order prohibiting, for a
specified period not
exceeding one month, the holding of all public
demonstrations or any class
of public demonstrations in the area or part
thereof concerned."
Now to show how ill-informed these top police officials
are, they banned
political rallies for three months but they quote the said
section
mentioning categorically "not exceeding one month".
So where did
they get these powers to extend this ban to three months? It
just goes to
show show how the police and whoever is behind them are
illiterate and a law
unto themselves.
Not even this government has the power to amend the
country's laws
willy-nilly without Parliament's approval.
It's
undemocratic and unconstitutional for police to be allowed to ban and
effect
changes to our laws with impunity as they have proved time and again
that
they are incapable of enforcing them, let alone interpreting these
laws.
Livison Kahondo
Australia
------------
Not all is
lost for Zimbabwe
EDITOR - While I completely agree with
Pasi's sentiments in The Financial
Gazette of February 22 2007, let me say
there is a lot of hope for Zimbabwe.
It might look as if we have an
insurmountable problem ahead of us but it's
not the case. It would make
sense to look at countries like Bolivia which
around 1985 had an inflation
rate of 101 000 percent. Yes, it indeed was 100
times more than ours but
they were able to fix it just like we can.
Let us also remember that like us
they didn't have the support of the World
Bank or the IMF. No foreign bank
saw it feasible to lend them any money.
They also faced numerous sanctions
from the West as we are facing today.
They had to go through what they
called "the shock effect" to control
hyperinflation which we are
experiencing today. They forced their inflation
to drop to six percent in a
short period by doing a few things which we can
do as well to tame this
beast.
First, they encouraged the free market system where the law of demand
and
supply takes charge. In this venture you have to get rid of price
controls,
a move which will be initially painful for consumers but in the
long run it
will benefit them because goods will be available and
competition will lead
to falling prices. Secondly, they encouraged respect
for property rights and
the rule of law. Thirdly, they discouraged
bureaucracy which is tedious and
shackles development. They made the fight
against corruption, which is our
biggest enemy in Zimbabwe, their number one
priority.
Also, they encouraged entrepreneurship because the environment was
now
ideal. This would increase employment, among other benefits to the
economy.
The safer political environment also meant foreign investors were
more
willing to invest in the country.
However, here is where Zimbabwe
has a dilemma. Zimbabwe would not have been
able to push for respect for
property rights because the average Zimbabweans
did not have any property to
begin with. Before land distribution there were
no property rights to
protect because nobody had any property given that 70
percent of the
population is in the rural areas.
Thus the land was already unfairly
distributed as children of colonisers
inherited farms which could be the
size of a small suburb or town. They
would then pass on this land from
generation to generation. While this was
going on, we were passing poverty,
stress and disease from generation to
generation.
Instituting propety
rights in such a scenario would not have served any
purpose. What was needed
was equitable distribution of wealth first. Now
that this has been
reasonably achieved, the government needs to ensure the
law protects the
propety that people have acquired.
There is now need for a safe political
environment to attract much-needed
foreign investment. We now need to
encourage free enterprise and promote
entrepreneurship. Price controls
should be abandoned and the law of demand
and supply should take its course.
All it takes is effort from the
government and for the population to hang
on. The economy right now is a
picnic as compared to what Bolivia and
Argentina went through. Believe me,
there is salvation at the end of the
tunnel.
Martin Majaji
United States
--------------
No need for
a 'pocket scientist' here
EDITOR - let's say you have US$3 in
cash, and let's pretend that the bank
rate is 250:1 and the "other" rate is
6 100:1. And let's say you actually
have access to US$ cash from the Reserve
Bank of Zimbabwe because you are .
. . well, just because. It does not take
a "pocket scientist" to work out
that from your US$3 you will have to make
just four trips to the bank . . .
and you have US$1 million!
Show me a
business which can turn $3 into $1 million with just four trips to
the bank.
With zero output, zero costs, zero employees, zero taxes, and zero
benefit
to society. And in hard curency too!
With such efficient money growth, I
think it was a very wise move not to
devalue the "official" rate! Imagine
the loss of potential earnings.
S
Herring
Penhalonga
---------------
Peace of the
grave
EDITOR - I was disgusted by Vice-President Joseph
Msika's fatuous speech at
an "election" rally in Chiredzi when he said there
has been peace in
Zimbabwe for the past 15 years. This is the peace of the
grave. How can
someone in control of his full faculties talk of peace when
inflation is
running at 1 600 percent?
These people were not fighting for
so-called independence. It was a fight
among the political parties for
power. ZANU was formed in 1963 by those who
felt they were going to be left
out by Joshua Nkomo in a future government
then. It has taken the people
almost 20 years for the penny to drop and
realise that these nationalists
are nothing but lazy people working for
their self-interest.
In 1993
former Chief Justice Enoch Dumbutshena, then leader of the Forum
Party, was
exasperated and shocked about the docility shown by the people of
Zimbabwe
who were unable to anticipate the despotism of their so-called
liberators.
It is the people who created a one-party state for themselves
in the
euphoria of independence. There is a saying that "People get the
government
that they deserve". There was never any altruism in crossing the
border to
join the forces fighting against imperialism.
The nationalists
got a chance to create their own personal militias who are
now the military
and law enforcement organs. These organs are no more than
branches of the
ruling party. We now have a binary society worse than we had
during the
colonial era.
The ZANU PF secretary for finance, Richard Hove, was quoted as
saying that
people should get their priorities right by saving scarce
foreign currency
instead of buying luxury cars which are so common on our
streets. He should
be telling that to the military chiefs who are spending
money on luxury
vehicles, among other possessions. And then to his boss,
President Mugabe,
that it is crass to have such an over-the-top motorcade.
Ian Smith used to
use one vehicle and one driver when he was in power. It is
suggested by this
government that a certain Peter Chikumba is going to turn
the fortunes of
Air Zimbabwe because of his experience. What a load of
rubbish. How can he
turn around an airline where the only passengers are the
bloated
presidential entourages on shopping junkets?
What really is
Msika's function in government? What does he do in a typical
working day?
This is the kind of people who are earning huge salaries for
doing
absolutely nothing.
S Chimbindi
United Kingdom