The ZIMBABWE Situation Our thoughts and prayers are with Zimbabwe
- may peace, truth and justice prevail.

Back to Index

Back to the Top
Back to Index

Zim Independent

Moyo bowled out
Dumisani Muleya
IN a major climbdown yesterday government lifted its ban on 13 British
journalists covering England's five-match one-day international cricket
series against Zimbabwe now due to start in Harare tomorrow.

The dramatic retreat by Information minister Jonathan Moyo, whose department
initially tried to bar the 13 journalists representing Britain's main media
houses, came against a background of yet another clash between the state and
the ruling Zanu PF's warring information departments.

The two departments engaged in a major public spat in May over a Sky News
television interview with President Robert Mugabe.

Moyo battled in vain to stop the interview as Nathan Shamuyarira, who heads
the ruling party's information machinery, worked to bring the crew in.

Sources said while Moyo's department tried to bar the journalists this time,
claiming it was still checking their credentials, Shamuyarira was prepared
once again to overrule it.

After intense negotiations between Zimbabwe Cricket (formerly the Zimbabwe
Cricket Union) and the England and Wales Cricket Board (ECB) yesterday
morning, Moyo finally made a volte-face to allow Sky News, the BBC, the
Daily Telegraph and Sun journalists to enter the country. His antics, seen
as part of an ongoing campaign against the international media, delayed the
first match from today to tomorrow. England are due to arrive this morning.

Moyo's department retreated after England threatened to boycott the series.
Last year England boycotted its one-day cricket World Cup fixture against
Zimbabwe due to security concerns after a political row between Harare and
London over repression and human rights abuses.

Observers believe Moyo calculated his department would get away with banning
the journalists on Tuesday because England would find it difficult to
withdraw so close to their arrival scheduled for Wednesday evening.

"Moyo unwittingly provided the ECB with a pretext for withdrawal just as
they thought they were finally locked into the series," a cricket source
said yesterday. A number of key personalities were pressed into securing a
government retreat, it transpires.

"Zimbabwe needed the series to communicate an impression of normalcy," the
source said.

As a result the journalists were given conditional access into the country
after the Information department backed off claiming it had been unable to
find their names on their organisation's websites.

"Inquiries have now been completed and the outstanding 13 journalists have
been cleared on the understanding that they will be coming to exclusively
cover the cricket matches, not to meddle in the politics of Zimbabwe," the
department said in what was widely seen as a face-saving formula.

The statement reflected the state's concern that the journalists might write
about the situation in Zimbabwe.

The banned journalists were part of 55 reporters who had applied for

permission to cover the matches. Only 42 had been accredited.

However, Shamuyarira's department thought nothing would be achieved by
banning the journalists, except feeding negative publicity about government.

He yesterday wrote to Sky News inviting it to the country. While Moyo was
anxious to restrict journalists' coverage, Shamuyarira gave them freedom to
also cover politics.

"I am faxing to let you know that Sky News Broadcasting has been granted
permission to cover the Zimbabwe/UK (England) cricket matches and the 4th
Zanu PF National People's Congress to be held from 1-5 December 2004,"
Shamuyarira said.

"You will be accredited for 14 days. It is however unfortunate that it will
not be possible for you to interview Simon Mann as he is a prisoner."

Mann is a jailed former British Special Air Services commander who was
arrested in March in Harare together with 69 other alleged mercenaries
Back to the Top
Back to Index

Zim Independent

Mugabe to crack whip
Staff Writers
PRESIDENT Robert Mugabe is today expected to read the riot act to Zanu PF
Bulawayo provincial leaders over simmering dissent within his party
following divisive elections last weekend.

Mugabe is due to meet senior Zanu PF Bulawayo politicians to tackle the
infighting which intensified after Sunday's controversial nomination of new
party leaders ahead of a potentially explosive congress which starts on
Wednesday.

Zanu PF deputy national commissar Sikhanyiso Ndlovu yesterday confirmed
Mugabe would be in Bulawayo to deal with the widening divisions in the
party.

Sources said Mugabe is expected to deal with the problem of war veterans
chairman Jabulani Sibanda who was suspended by the politburo for attacking
senior party leaders but remains active.

Mugabe is also expected to resolve the exclusion of politburo heavyweights
Dumiso Dabengwa and Ndlovu from the central committee.

A group of ex-combatants led by former war veterans secretary-general Andrew
Ndlovu yesterday met in Bulawayo to prepare a dossier of complaints to be
submitted to Mugabe.

Ex-war veterans' leaders want the current command structure changed while
Bulawayo bigwigs want the party's provincial executive council chaired by
Themba Ncube dissolved.

Mugabe is expected to grill the Bulawayo Zanu PF provincial leaders on why
they ignored a politburo circular despatched after last Thursday's emergency
meeting to nominate a woman among the two vice-presidents.

Bulawayo was the only province which defied the circular. The crisis meeting
to contain the power struggle follows an unprecedented 16-hour Zanu PF
politburo session on Wednesday. Sources said the meeting was characterised
by open hostility.

Losers claimed rules were subverted during the nominations. Winners rejected
the allegations.

The meeting agreed to look into the complaints case by case without changing
the nomination results. Debate centred on last Thursday's politburo
resolution, the manner of nominations, vote-buying and congress. -
Back to the Top
Back to Index

Zim Independent

Budget highlights

Income tax-free threshold

From $9 million to $12 million

Tax-free bonus

From $100 000 to $5 million

Credits for disabled

From $120 000 to $500 000

Proposed vehicle benefits

1 500cc - $2 280 000

2 000cc - $4 200 000

Over 3 000cc - $7 200 000
Back to the Top
Back to Index

Zim Independent

Reserve Bank gave Zanu PF $800m
Vincent Kahiya
RESERVE Bank of Zimbabwe governor Gideon Gono is probing the disbursement of
$800 million to a Zanu PF shelf company by the RBZ last year.

In an interview this week, Gono said he was not aware of the transaction
until the Zimbabwe Independent brought it to his attention. The transaction
did not take place during his tenure as governor. He however said the
central bank was not washing its hands of the matter as he takes
responsibility for "all transactions" done by his predecessors.

The Independent has it on good authority that Gono on Tuesday summoned
prominent lawyer Edwin Manikai as part of the probe into the disbursement of
the loan. Manikai's legal firm, Dube, Manikai & Hwacha, has been fingered in
the report as being instrumental in the formation of the briefcase company,
Smoothnest, which allegedly received the $800 million from the RBZ.

The RBZ has been disbursing loans under the productive sector facility (PSF)
to distressed companies to boost productivity. A Zanu PF politburo report on
the party's enterprises cites Smoothnest as the recipient of a loan from the
Reserve Bank. There is no RBZ facility catering for such a disbursement.

It is not clear whether the party, through Smoothnest, has repaid the RBZ
loan.

The report, compiled by a team probing the party's decaying business empire,
says Smoothnest, described in the document as a "shelf company", applied for
and got the money when Zanu PF was preparing to raise funds for its
conference held in Masvingo in December last year.

The four-member team which prepared the report interviewed the party's
secretary for administration Emmerson Mnangagwa who made the startling
revelation about the loan from the central bank

"Zanu PF wanted to raise $2,1 billion for the Masvingo conference and
requested the money from the party company (M&S Syndicate Pvt Ltd)," the
report says.

"There were 38% shares in Southern Africa Reinsurance Company and the party
decided to offer the shares for sale. (The shares were however not sold.) A
shelf company (Smoothnest) was then formed by Dube, Manikayi (sic) & Hwacha.
Smoothnest applied to the Reserve Bank and they were given $800 million,"
the report said.

Gono this week said under normal circumstances the RBZ "does not advance
loans to individuals but transactions were made through financial
institutions".

"The central bank also advances loans to (the) government of Zimbabwe. Based
on this observation, a transaction such as this one would be an anomaly," he
said.

The curious loan from the central bank is one of numerous murky deals
highlighted in the report, which has caused serious ructions in the ruling
party.

Party sources this week said there were also concerns that the money raised
from the RBZ might not have been used to finance the staging of the
conference. The report, in a rather intricate way, explains how the party
also raised money from other sources over and above the $800 million.

"$1 billion was also paid to Smoothnest by First Bank as a loan and the
money was deposited into the NDH Special Investment Account where it raised
$811 million which was withdrawn by Mr D Pandya (a director of several Zanu
PF-linked companies)," it said.

"Cde (David) Karimanzira (secretary for finance) managed to raise $1,2
billion from donations, so the $811 million which was withdrawn was
re-invested (in) NDH and raised $38 million."

This arrangement is also curious as Smoothnest also warehouses Zanu PF
shares in both First Bank and NDH. This means a bank in which Zanu PF has
major influence extended a loan to a Zanu PF company, Smoothnest. The money
was deposited into NDH where Zanu PF also holds sway and yielded $811
million. The interest was reinvested to produce an additional $38 million
interest. Thus the party raised $849 million in interest from a loan
provided by First Bank in which Zanu PF held a 27% stake.

Meanwhile, the RBZ is expected to name and shame companies which accessed
PSF funds and converted part of the loans into dividends to shareholders.
Gono this week confirmed a number of companies cutting across all sectors of
the economy had diverted RBZ loans to pay dividends.

"An example of this development is the payment of dividends where PSF loans
have been called back in full and are due for payment by 30 November 2004,"
said Gono.

"Both the Reserve Bank and issuing commercial banks have the joint
responsibility of ensuring that borrowed funds are used for their intended
purposes."
Back to the Top
Back to Index

Zim Independent

Diplomats petition govt on property seizures
Augustine Mukaro
EUROPEAN Union diplomats whose nationals have lost properties due to the
land reform programme have petitioned President Robert Mugabe and Reserve
Bank governor Gideon Gono to urgently resolve the problem.

Highly-placed sources in the agricultural sector said diplomats had
forwarded a list of properties they want delisted and to have invaders
evicted.

"Diplomats in conjunction with the Commercial Farmers Union have written to
government to urgently delist some properties, especially those protected
under Bilateral Investment Promotion and Protection Agreements (Bippa)," one
farmer said.

This development comes at a time when one of the country's biggest mixed
cropping ventures, Highbury Estate in Mashonaland West, is reportedly under
siege from ruling Zanu PF chefs.

Highbury Estate is protected under a Zimbabwe/Belgian Bippa and has been
producing wheat, tobacco, maize, citrus and cattle. The estate is owned by
Zimcor Ltd, a subsidiary of Conafex SA. Conafex is listed on the London,
Luxemburg and South African stock exchanges. It is one of the largest mixed
crops/cattle estates still left in private hands.

Zimbabwe has Bippas with several European Union countries, four of them
ratified by President Robert Mugabe. The agreements bind Zimbabwe to protect
the investments and properties of other countries from arbitrary
expropriation. Government has generally reneged on these agreements
resulting in strained relations with a number of important states.

The worst affected country is South Africa which had over 200 farmers across
the country. Most of them have lost their properties since the government
embarked on the controversial land reform programme in 2000. The farmers
have made numerous representations to their government without success.

In June South African Foreign minister Nkosazana Dlamini-Zuma was quoted in
the media as saying farms owned by South Africans were secure.

Expropriation of properties owned by South Africans has however continued in
the south-eastern Lowveld where sugar estates are under threat.

Government has also ignored a report by Special Affairs minister for Lands,
Land Reform and Resettlement John Nkomo, urging the state to avoid seizing
land protected by international accords.

Five plantations owned by Border Timbers, the country's largest timber
producer, have been acquired. Borders Timbers' land seized by the state
includes Tilbury, Cambridge, Imbeza, Mahugara and Walmer estates.

The company's sawmills process more than 35 million logs each year, and it
also runs a veneer factory.

The seizure of the land is in violation of an agreement between Zimbabwe and
Germany. The German-Zimbabwe Bippa was signed in 1995 by representatives of
both governments to protect Border Timbers' properties and assets from
expropriation.

Zimbabwe gave assurances to Germany that Border Timbers' land would not be
targeted for seizure.

In addition to the timber plantations, the government has also taken over
Aberfoyle Estates, a major tea exporter, and Eastern Highlands Plantations,
one of Zimbabwe's few producers of washed Arabic coffee.
Back to the Top
Back to Index

Zim Independent

RBZ secures US$50m fuel lifeline
Godfrey Marawanyika
THE Reserve Bank of Zimbabwe (RBZ) has secured a US$50 million line of
credit to import fuel, central bank governor Gideon Gono said this week.

This comes at a time when a number of fuel importers have been accused of
misappropriating foreign currency allocated to them to import fuel by the
RBZ. This has led to erratic fuel supplies that have caused major
disruptions to the transport sector and industry.

Gono said the RBZ was now dealing with 67 firms out of the registered 103.

"The central bank has in recent weeks secured lines of credit for fuel from
both regional and international financial institutions to amounts in excess
of US$50 million," Gono said.

"However, the problem of fuel in Zimbabwe is not that of financial resources
but of logistical constraints."

He did not disclose the names of the financiers.

The country has been experiencing fuel problems with importing firms blaming
the crisis on a shortage of foreign currency and transport constraints.

The situation was worsened by a decision by Sasol of South Africa to stop
fuel exports two months ago. Although Sasol has now reversed its decision,
the suspension of supplies greatly affected parts of the Midlands, and
Matabeleland North and South.

Gono would not be drawn into saying whether the country needed so many fuel
importers in the face of forex constraints and referred all enquiries to the
Ministry of Energy and Power Development. Energy permanent secretary Justin
Mupamhanga declined to comment.

"However, there are reforms taking place in the sector that should iron out
logistical constraints," Gono said without elaborating.

This week a number of fuel merchants were up in arms against the Petroleum
Marketers Association of Zimbabwe (PMAZ) for allegedly diverting $1 billion
for fuel imports into bank accounts.

Feuding between indigenous and established fuel merchants has also worsened
problems in the sector and affected the operations of the PMAZ.

Problems in the sector have been exacerbated by the shortage of foreign
currency which has to be accessed through the auction system.

Gono said investigations of the fuel sector for abuse of foreign currency
were still on-going.
Back to the Top
Back to Index

Zim Independent

Zim in platinum promo
Chris Goko
ZIMBABWE'S central bank is next week expected to hold roadshows in South
Africa to explain to platinum miners the essence of its enhanced platinum
sector regime (EPSR) which comes into effect in February.

The campaign, which involves Reserve Bank of Zimbabwe (RBZ) governor Gideon
Gono, will also see Zimbabwe trying to sell the idea of joint-venture
projects between existing platinum group metals (PGM) processors and
yet-to-be identified local part-ners.

It has been learnt that the team will try to market the idea of 50:50 joint
ventures in which the country's three platinum miners - Anglo American
Corporation, Mimosa and Zimbabwe Platinum Mines (Zimplats) - will take on
board emerging local consortiums in new projects.

Anglo, owners of the US$90 million Unki, and Impala Platinum Mine, which
controls Zimplats, are the world's leading platinum producers.

The expected roadshows in Johannesburg and Cape Town come at a time when
Zimbabwean monetary authorities have announced that they want full
beneficiation of the country's US$300 billion PGM treasure - the second
largest deposits in the world after South Africa.

Analysts said government's anticipated explanation on EPSR and its
implications for existing and future investment in PGM would greatly help
allay fears of security of foreign investments in the country.

Under Gono's new platinum measures, marketing of PGMs has been ceded to the
state while miners' offshore accounts have been abolished in return for
"special local foreign currency accounts".

The shock October announcement prompted platinum players to urgently tackle
the government for further clarification on the issue.

Apart form that, PGM companies were also unnerved by the demand voiced by
President Robert Mugabe and others that mining multinationals should give
49% of their investments to local empowerment groups.
Back to the Top
Back to Index

Zim Independent

Sixth land audit committee appointed
Augustine Mukaro
INTRACTABLE problems associated with the controversial land reform programme
have forced government to appoint a sixth land audit committee to recommend
the way forward.

The new committee will be led by the Department of Policy Implementation in
the Office of the President and Cabinet. It will work with the Ministry of
Special Affairs responsible for Lands, Land Reform and Resettlement to
assess productivity on allocated farms, availability of critical farm
equipment and maximum farm sizes.

Policy Implementation minister Webster Shamu said his committee would not
necessarily be auditing the land reform but assessing whether cabinet
instructions had been implemented.

"We accept that there were problems in the implementation of the land
reform," Shamu said. "Our duty now is to identify those problems and
facilitate their corrections. It is the duty of the government to ensure
that whatever was wrongly done is corrected. We will not hesitate to take
action in consultation with the Lands and Agriculture ministries."

Sources said the new committee's probe was equivalent to an audit because it
would seek to resolve issues such as occupation of peri-urban farms.

Farmers who spoke to the Zimbabwe Independent described the exercise as
another waste of resources considering the confusion on farm allocations.

A succession of audit committees, inquiries and taskforces have revealed
serious irregularities in the land reform exercise but little has been done
to address these problems.

First to be appointed was a parliamentary audit. After the MPs' team,
another committee led by former Land Reform minister Flora Bhuka was
appointed. It revealed gross irregularities in the programme, especially the
violation of the one man, one farm principle.

Prominent politicians were allegedly implicated in the grabbing of farms for
themselves. Results of the Bhuka report were never made public by
government.

Another audit committee led by former cabinet secretary Charles Utete
uncovered similar problems. The Utete committee shot down government claims
that it had resettled 300 000 and 54 000 farmers under models A1 and A2
respectively.

Only 27 000 farmers had been settled under the A1 scheme and 7 000 under A2,
it said.
Back to the Top
Back to Index

Zim Independent

NGOs get 6-month reprieve
Godfrey Marawanyika
THE government has given Non-Governmental Organisations (NGOs) a six-month
grace period to regularise their operations once the controversial NGOs Bill
is passed by parliament.

The latest development comes amid claims in the NGO sector that government
has targeted 15 organisations for closure.

The NGOs reportedly on government's hit list include the Zimbabwe Civil
Education Trust, Zimbabwe Election Support Network, Combined Harare
Residents Association, Crisis in Zimbabwe, Humanistic Institute of
Development Co-operation with Developing Countries, National Constitutional
Assembly, Media Institute of Southern Africa, Zimbabwe Liberators Platform,
Zimbabwe Lawyers for Human Rights, Amani Trust, Zimbabwe NGO Human Rights
Forum, Bulawayo Agenda and Women of Zimbabwe Arise.

Government has however dismissed the allegations that its Bill on the
registration, regulation and funding of NGOs is target-specific.

Public Service and Social Welfare minister Paul Mangwana said although the
Bill was silent on the period NGOs should take to align their operations
with the law, those that were operating legally would be given time to
adjust to the new legislation.

"Organisations that were already legally operating under the Private
Voluntary Organisations (PVO) Act or as registered trusts have got six
months to regularise their operations. That list (of 15 NGOs targeted) is
not true because that is just speculation," he said.

"We are not targeting anybody. If those organisations by their virtue deal
with human rights organisations, they fall under this category but they are
not targeted at all," Mangwana said.

The proposed legislation will repeal the PVO Act and seeks to make it
illegal for NGOs involved in issues of governance, such as voter education,
to receive foreign funding.

The Bill will also outlaw the registration of foreign NGOs whose "sole or
principal objects involve or include issues of governance".

The proposed law will have a huge bearing on the ability of affected NGOs to
operate since most of them are foreign-funded, analysts complain. This
includes the critical area of food distribution.

Director of the National Association of Non-Governmental Organisations
(Nango) Jonah Mudehwe said he was aware the government was targeting
particular institutions but would not name them.

"The minister has been very open that there are some NGOs which are
targeted, particularly those involved in issues of governance and human
rights. Unfortunately I cannot say anything on that particular list,"
Mudehwe said.

On Wednesday, legislators referred the NGOs Bill to the Parliamentary Legal
Committee for assessment after MDC MPs objected to some of its causes.
Back to the Top
Back to Index

Zim Independent
CHRA calls for rates boycott
Augustine Mukaro
THE Combined Harare Residents Association (CHRA) has urged its members to
boycott paying rates and other council obligations to protest government's
arbitrary appointment of a commission to run the city's affairs, the
Zimbabwe Independent has gathered.

CHRA said it would also seek an urgent High Court injunction to stop Local
Government minister Ignatious Chombo from appointing the commission.

Chombo's commission will be made up of members from the Johannes Tomana and
James Kurasha committees which will be bolstered by acting mayor Sekesai
Makwavarara.

Tomana's committee, which comprised four members, investigated and
recommended the firing of Harare's opposition MDC executive mayor Elias
Mudzuri for alleged misconduct. Mudzuri was popularly elected Harare mayor
in 2002.

The Kurasha committee had five members who included ruling Zanu PF top
functionaries Tony Gara, Tendai Savanhu and Harare Province's acting
administrator Bernard Chahuruva.

Chombo plans to appoint a commission because the committee which currently
exists alongside a handful of Zanu PF councillors cannot pass a budget since
it has not been officially installed as the authority in charge of Harare.

CHRA chairman Mike Davies confirmed the call for a boycott saying it was the
only weapon residents could use to force government to call for elections in
Harare.

"We called for the boycott since Mudzuri's dismissal," Davies said.

"We repeat that age- old principle: no taxation without representation."

In a statement to the Independent, CHRA saidgovernment could not afford to
have democratically-elected representatives at Town House because they would
open a can of worms.

"Chombo once more displays his disrespect for the laws passed by his own
party," CHRA said.

"The city belongs to the residents of Harare who fund its operations through
their rates and other financial contributions," it said.

"As such it is up to all residents to reject the imposition of another Zanu
PF commission by withdrawing all support for the municipality until we
regain the power that is ours. The law is very clear on our rights to elect
an executive mayor and council."

CHRA said if a commission was to be appointed its terms of reference should
be to facilitate mayoral elections and not to assume the duties of an
elected council.

The association also said when a democratically-elected council was restored
at Town House, it would press for the creation of an investigation committee
to expose nepotism, corruption and mismanagement and examine the collusion
of senior municipal officials in the theft of residents' democratic rights.

Zanu PF is expected to appoint party apparatchiks to the commission to run
the affairs of Harare City Council within 21 days. The commission would be a
direct U-turn by Chombo, who in April ruled out such a set-up claiming that
he had "seconded competent and experienced personnel to help the city
improve service delivery".

Back to the Top
Back to Index

Zim Independent

Legal committee blocks Bill on president
Gift Phiri
THE ruling Zanu PF party's bid to push through parliament harsh new
legislation that makes it an offence for anyone to make an abusive statement
about President Robert Mugabe or an acting president has been blocked by the
Parliamentary Legal Committee (PLC).

Zanu PF wanted to criminalise the utterance of an "abusive, indecent, or
obscene statement" through the Criminal Law (Codification and Reform) Bill.

The proposed law, part of a slew of Bills that government wants passed into
law before December 1 when Zanu PF begins its National People's Congress,
was described as unconstitutional by the PLC.

The PLC, chaired by the Movement for Democratic Change (MDC)'s Professor
Welshman Ncube, said the Bill was in contravention of the Declaration of
Rights.

But with its overwhelming parliamentary majority, Zanu PF attempted to
suspend parliament's standing orders, which requires a three-week delay to
redraft the laws and bring them in line with the constitution.

It was resolved that a decision on the Bill be deferred to give members more
time to properly consider its provisions. The PLC said provisions of clauses
22, 33, 37, 46 and 182 (2) of the Bill were ultra vires the Bill of Rights.

Clause 33(2) (b) of the Bill sought to make it illegal for anyone to make
abusive, indecent or obscene statements about or concerning the president or
an acting president or the president's office.

The Bill said any person in contravention of this provision "shall be guilty
of undermining the authority of or insulting the president and (is) liable
to a fine not exceeding level six ($400 000 fine) or imprisonment for a
period not exceeding one year or both".

However, the committee raised objections saying this provision was
unconstitutional.

"It is your committee's finding that, given the nature of the Presidency in
Zimbabwe, which is a public elected political office, to ring-fence that
office against criticism amounts to derogation from fundamental freedoms
protected by the Constitution, particularly with respect to the freedom of
expression," Ncube said.

The PLC, which also comprises Zanu PF MP Kumbirai Kangai and the MDC's
Innocent Gonese, said an abusive statement could not be criminalised in a
political context.

It said although indecent and obscene statements could be properly
criminalised, clause 33 (b) which criminalises "abusive" statements was
unconstitutional. Clause 22 attempts to further restrict citizens' right to
freedom of expression, assembly and association by outlawing boycotts, civil
disobedience or resistance to any law.

"A provision that seeks to derogate from these fundamental freedoms cannot
be constitutional unless it is one of the exceptions provided for in the
constitution," Ncube said.

"In consequence your committee finds clause 22(1)(b) unconstitutional to the
extent that it can be read to mean threats of civil disobedience if
unaccompanied by threats of force are criminal."

Clause 37 unduly restricts the right of persons to participate in public
gatherings, meetings and demonstrations, which are legitimate means of
exercising their freedoms protected by sections 20, 21 and 22 of the
constitution.

Clause 46 gives a list of acts that are prohibited. These include making
noise, playing a musical instrument or a wireless in a public place,
shouting or screaming in a public place or interfering with the peace and
quiet of the public.

Ncube said the specific limitations to human conduct were "unconstitutional,
extreme and unjustifiable".

"The provisions of clause 46 are also in violation of Section 20(1) of the
constitution which protects freedom of expression in that they criminalise
the possible use of this freedom to express legitimate criticism of the
police force," Ncube said.

Clause 182(2) of the Bill criminalises refusal to testify in a court
proceeding for whatever reason.
Back to the Top
Back to Index

Zim Independent

Zanu PF 'abusing' parliamentary majority
Staff Writer
ZANU PF is using its parliamentary majority to bulldoze through the House of
Assembly patently unconstitutional Bills against the advice of the
Parliamentary Legal Committee, it has emerged.

Parliament has of late been disregarding adverse reports prepared by its own
legal committee which is chaired by Professor Welshman Ncube of the
opposition Movement for Democratic Change !MDC). The MDC has two MPs while
Zanu PF has one on the committee which advises parliament on the
constitutionality of Bills.

Despite the committee's numerous adverse reports, Zanu PF has used its
parliamentary majority to pass a number of controversial laws.

Recently the ruling party suspended parliament's standing orders, which
require a three-week delay to redraft Bills that have attracted adverse
reports to bring them in line with the constitution. Lately Zanu PF has
resorted to dividing the House and voting to get around such adverse
reports.

The committee, which includes the MDC's Innocent Gonese and a Zanu PF
backbencher Kumbirai Kangai, seems to have created political difficulties
for the ruling party.

According to parliamentary procedure, the legal committee is required to
examine every Bill and statutory instrument (SI) to ascertain whether they
are constitutional or not and report to the House.

In the absence of a negative report from the committee within a specified
period, parliament can proceed on the assumption that the Bill or SI in
question does not contravene the constitution.

If the legal committee considers that a Bill or SI contravenes the
constitution, and parliament accepts this recommendation, the House "shall
not pass" the proposed legislation or its offending sections. If the
offending provision is redrafted, it must be resubmitted to the legal
committee and the process repeated.

Constitutional law expert Dr Lovemore Madhuku said the disregard for
parliamentary procedure on adverse reports demonstrated the ruling party's
contempt for democratic norms.

"It shows Zanu PF's disrespect for the constitution," Madhuku said.

"The ruling party would never respect constitutional provisions that stand
in the way of their political plans."

The legal committee last week produced adverse reports on a number of
measures, including the Non-Governmental Organisations Bill, the Zimbabwe
Electoral Commission Bill and the Criminal Law (Codification and Reform)
Bill. In all three cases, the legal committee found clauses that contravened
freedoms and rights enshrined in the constitution.

Heated debate between the ruling Zanu PF and the MDC last week saw an
adverse report on electoral reforms prepared by the Parliamentary Legal
Committee being thrown out by 75 votes to 37. The committee said clauses in
new electoral reforms dealing with voter education and the banning of
foreign funding were unconstitutional.

The NGOs Bill was on Wednesday pushed through parliament against the
recommendations of the legal committee amid tough opposition to 12 clauses
of the Bill which were found to be unconstitutional. -
Back to the Top
Back to Index

Zim Independent

War camps and the battle plans
Dumisani Muleya
THE ruling Zanu PF's leadership nomination process ahead of next week's
congress has run its dramatic course and produced an outcome which has
changed the plot of President Robert Mugabe's heated succession race.

The selection of Mugabe, Joseph Msika, Joyce Mujuru and John Nkomo to occupy
the party's top four elected positions came against a background of vicious
wrangling among the party's political gladiators grouped in two camps.

Zanu PF insiders say the groups, one led by the party secretary for
administration Emmerson Mnangagwa and the other by politburo big shot,
Retired General Solomon Mujuru, were locked in a power struggle to secure
nomination of their candidates.

The political combat was characterised by behind-the-scenes manoeuvres,
backbiting and sometimes open bickering. The sources say the infighting
manifested itself in the form of tussles over land, clashes in the media, at
meetings and in parliament.

The squabbling left Zanu PF deeply divided into warring political factions.
Although membership of the camps overlapped, there were movers and shakers
on both sides.

Mnangagwa's group - coalesced around the so-called South-South Coalition
which encompassed Midlands, Matabeleland, Masvingo and Manicaland - included
Zanu PF secretary for legal affairs Patrick Chinamasa, information and
publicity deputy secretary Jonathan Moyo, and senior party members such as
July Moyo and Shuvai Mahofa.

Insiders say the camp's masterplan had an ethnic arrangement from the
current Zanu PF Unity Accord structure. It placed Mugabe on top to represent
Zezurus, Women's League chairperson Thenjiwe Lesabe to represent Ndebeles,
Mnangagwa Karangas and Chinamasa Manyikas. Lesabe was understood to have
been dragged in.

Masvingo governor Josiah Hungwe, Agriculture minister Joseph Made, Transport
minister Chris Mushowe and his deputy Andrew Langa, Foreign Affairs deputy
minister Abednico Ncube and Minister of State in the Vice-President's Office
Flora Bhuka were part of this camp.

Zanu PF MPs Jorum Gumbo, Pearson Mbalekwa and Kindness Paradza, among many
others, were also in the group. War veterans chairman Jabulani Sibanda, his
deputy Joseph Chinotimba, and Bulawayo war veterans chairman Themba Ncube
were included.

Former Matabeleland North provincial medical director Dr Ruth Labode, who is
close to Jonathan Moyo, was also linked to the group. The camp managed to
draw into its fold six Zanu PF provincial executive council chairmen: Themba
Ncube (Bulawayo), Jacob Mudenda (Matabeleland North), Mike Madiro
(Manicaland), Lloyd Siyoka (Matabeleland South) and Daniel Shumba
(Masvingo).

However, Mudenda's and Madiro's provinces defected to the Mujuru camp at the
eleventh hour to deliver the final blow against Mnangagwa who eventually
lost to Joyce Mujuru in the race for the vice-president's post left vacant
after the death of Simon Muzenda last year.

General Mujuru's grouping comprised a number of political heavyweights such
as Defence minister Sydney Sekeramayi, politburo bigwigs Dumiso Dabengwa and
Josiah Tungamirai, State Security minister Nicholas Goche, party commissar
Elliot Manyika and nearly all other provincial governors.

It also had sympathisers in the form of Msika, Nkomo, Home Affairs minister
Kembo Mohadi, Zanu PF deputy national commissar Sikhanyiso Ndlovu and
virtually all other former PF Zapu stalwarts. Zanu PF spokesman Nathan
Shamuyarira was also seen as generally associated with it.

The group commanded the support of Zanu PF chairmen in Mashonaland East (Ray
Kaukonde), Mashonaland Central (Chen Chimutengwende), Mashonaland West
(Philip Chiyangwa) and Harare (Amos Midzi) although Chiyangwa was seen as a
Mnangagwa backer.

Mugabe remained neutral and above the fray as the cliques wrestled for
power. His intervention only came after the politburo decided last Thursday
at an emergency meeting that one of the two vice-presidents would have to be
a woman.

He only intervened decisively on the side of women who supported Joyce
Mujuru a day before the nominations. Mugabe took a firm stand this week in a
bid to suppress rising dissent and factionalism stemming from the process.

In a thinly-veiled attack on senior party officials, Mugabe threatened to
deal with sulking top members involved in acts of destabilisation.

He said he would deal with "divisive elements" in the upper ranks of his
deeply split party. He also said he would crackdown on "greedy" officials,
"crooks" and "cunning knaves" bribing voters and those who wanted to "grab
bread from other people's mouths".

Both camps used a variety of means, including "donations" and alignment with
the media, to win votes.

Donations in cash and kind seem to have angered Mugabe this week who accused
his officials of using money, including some sourced from "white
imperialists" with British connections, to bribe voters.

Mnangagwa's camp last Thursday descended on Dinyane Secondary School in
Tsholotsho, Matabeleland North, for a prize-giving ceremony, which sources
said was a strategic meeting. Mnangagwa was supposed to be the guest of
honour. Moyo was also supposed to attend.

However, Mnangagwa and Moyo failed to attend due to the emergency politburo
meeting in Harare. Chinamasa was despatched to officiate. He urged people in
Tsholotsho to vote for Moyo in the forthcoming Zanu PF primary elections.

Six Zanu PF chairmen, ministers, deputy ministers, MPs, a governor, war
veterans and party functionaries attended the ceremony where there was a
cascade of donations.

Mnangagwa led by example when he donated, in absentia, $10 million to buy
computers for the computer laboratory, Langa donated $5 million, Shumba gave
two computers to the school, while Abedinigo Ncube and Hungwe donated 100
bags of cement each for the construction of a classroom block.

Labode donated shelving material and Bulawayo businessman Delma Lupepe
donated $5 million. Mudenda donated a water pump and Bhuka a television set.
Some made pledges.

Mnangagwa's camp two weeks ago organised a similar prize-giving ceremony at
Ntalale Secondary School in Gwanda where Siyoka declared his executive would
not support Mujuru. He got suspended for it after members of the Mujuru camp
in the province reacted angrily.

That reaction, coupled with a botched interview with a local weekly which
angered a lot of people, apparently triggered a chain of events which led to
Mnangagwa's downfall.
Back to the Top
Back to Index

Zim Independent

Sorry plight of rural schools ignored
Own Correspondent
A CHARM offensive apparently targeted at luring support among high school
students who will come of suffrage age by the March general election has
obliged President Mugabe to travel to some remote parts of the country in
the past few months donating computer equipment.

Each hand-over ceremony provides an opportunity for Mugabe to capture the
attention of rural voters among both the students and villagers who throng
these events.

Ironically too, the in vogue donations seem to counterweigh Information
minister Jonathan Moyo's bid to thwart information dissemination through the
Internet.

Yet Zimbabwe's rural primary school infrastructure is crumbling, gnawed to a
point of dereliction by decades of neglect. The schools are stretched to
breaking point by increased enrolment without financial resources to match.

A visit to most rural primary schools reveals cracked walls and floors,
peeling paint, sagging rafters, unglazed windows and dilapidated structures.

The rot has been accelerated by an education policy that reposed
responsibility for the upkeep of buildings in community self-help projects
run by poor rural peasants.

In instances where donors have lent a hand by providing building material,
the schools have fared better.

More importantly, policies tilted heavily in favour of upgrading and
expanding secondary schools to bridge gaps in national human resources
shortfalls as a result of the brain drain in commerce and industry has come
back to haunt education administrators and policy makers.

One of the resolutions the ruling Zanu PF party in Matabeleland North made
this week ahead of the party's National People's Congress could throw the
decrepit educational facilities in the province a lifeline.

"We want the congress to pass a resolution compelling government to improve
the education facilities in the province," said party provincial chairman
Jacob Mudenda.

"Most buildings at primary schools in rural areas have become a hazard to
work in and pose a threat to both pupils and teachers," says retired
educationist, Polife Simelani.

"It is a miracle that some of the classroom blocks have not yet collapsed on
pupils."

Except for a few modern houses built from donor funds, teachers at rural
primary schools have learnt to live with sharing ramshackle accommodation.

Simelani blames former students associations for some of the woes faced by
rural primary schools. He says these associations have tended to identify
themselves with the secondary or high schools they attended whenever they
raise funds for improvement of infrastructure.

"There are numerous students associations. Most of them want to improve
conditions at the last secondary schools they attended. None seem to want to
identify themselves with the needy primary schools which are in various
states of dereliction," says Simelani.

Besides, the nominal per capita grant that the Education ministry disburses
to schools annually for each child falls woefully short of the education
requirements for a primary school child.

The grant disbursed by the ministry based on each school enrolment is meant
to cover books and stationery as well as maintain school infrastructure.

Because the grant is too small, serious shortages of textbooks and other
reading materials have become a common feature at rural schools.

Primary school textbooks now cost between $50 000 and $100 000 each, while
exercise books range from $3 500 to $7 500.

Although Education minister Aeneas Chigwedere has acknowledged the per
capita grant disbursed to each school for acquiring textbooks is
insufficient he has blamed schools for not maximising grant disbursements.

"The money may not be adequate but the major problem is that schools do not
take care of the books," Chigwedere said. "Most of the books are stolen and
resold on the black market."

Poor peasants are expected under the Education Act to form school
development committees and associations empowered to raise funds through
levies for the maintenance of school buildings. But problems arise when
other parents opt to enrol their children at more distant schools, which
charge less, to avoid paying increased levies.

"Every morning I see children run past my school to the next one that is
eight

kilometres away because it levies a lesser development fee than we do," says
Titus Gwelutshena, a teacher at a primary school in Nkayi.

In a worse position are farming communities, particularly those displaced by
the land reform programme together with newly resettled farmers. Parents
have watched helplessly as their primary school children cram into former
tobacco barns where lessons are conducted under stifling conditions.

In Chigwedere's Wedza constituency tobacco barns at Chad, Chirume and

Bolton farms have been converted into makeshift classrooms.

Yet the Education ministry has always received a lion's share of allocation
in the national budget. In fact the ministry has only expended 21% of its
2003-2004 budgetary allocation.

Officials in the ministry say 94% of its national budget appropriation goes
towards teachers' and administrators' wage bill.

Hundreds of rural schools built decades ago by missionaries scrambling to
evangelise rural communities claim a membership stake and a sphere of
influence within the communities they operated in. Most of these have
retained their vintage without additional buildings since then, making them
susceptible to damage by strong winds and prone to collapsing.
Back to the Top
Back to Index

Zim Independent

Editor's Memo

A volte-face

THE momentum from Grande Baie, Mauritius, has been lost after Sadc chair
Paul Berenger this week adopted the line of least resistance on Zimbabwe.

Having laid down the regional bloc's benchmarks on the holding of free and
fair elections at the summit in August, Sadc heads appeared set to usher in
a new era of electoral accountability of their members to each other.

"As this new charter itself reminds us, really free and fair elections mean
not only an independent electoral commission but also include freedom of
assembly and absence of physical harassment by the police or another entity,
freedom of the press and access to national radio and television, and
external and credible observation of the whole electoral process," Berenger
said then.

"And with free and fair elections due in Zimbabwe at the beginning of next
year, we can already start preparing for the normalisation of relations
between Sadc, the European Union and the United States of America," he said.

But Berenger made a volte-face this week on Sadc's role. He is now singing
from the same hymn sheet as South African president Thabo Mbeki. The hymn
"Quiet Diplomacy" has found a new chorister.

In an interview with SABC this week, Berenger lashed out at
interventionists, whom he accused of arrogance. He said there should be a
mission to assess the situation on the ground.

Sadc has in the past demonstrated a marked reluctance to undertake such a
mission.

"I am hopeful ... we must succeed together. The purpose as I said is not to
be disrespectful, to bully people around, to interfere in an unacceptable
way - the idea is to amongst us as brothers and sisters in the Sadc region
help each other to move together to implement this charter."

Berenger's assertion is affirmation that Sadc leaders will not raise loud
complaints about the NGOs Bill and contentious electoral legislation because
the leaders should "not interfere in an unacceptable way".

That hopeless posturing has been glorified under the high-sounding policy
called quiet diplomacy. We said in August that the electoral charter would
be a major test of Sadc's commitment to its own peer review mechanism.

They have failed, which was only to be expected.

But more saddening, the effect of that hands-off posture is to block the
proactive among Western democracies from voicing their objections to human
rights violations and electoral fraud.

But Sadc, as the custodians of the electoral charter - hailed as an African
innovation in the holding of free and fair elections - has a role to play in
ensuring that Zimbabwe adheres to the precepts of the election document.

MDC leader Morgan Tsvangirai who is on an international drive to advertise
the Sadc norms and President Mugabe's non-compliance with them, has remained
hopeful - albeit incongruously - that Mugabe is in a fix. Tsvangirai's
Tuesday message this week begs a number of questions on his reading of the
Zimbabwean situation less than four months before the general election in
March.

"The Robert Mugabe regime is feeling the heat," Tsvangirai says. "The regime
has run out of options. The ruse they sold to the world and the relentless
propaganda they poured onto the people can no longer hold."

The heat has been there on Mugabe since the disputed polls in 2000 and 2002.
The international community has screamed itself hoarse about poor
governance, the absence of the rule of law and repression. Like a camel in a
desert, Mugabe appears to be coping well with the heat.

The heat Tsvangirai alludes to does not appear hot enough to burn the skin
on the octogenarian leader's back. It is business as usual. Zanu PF will
push through parliament the NGOs and Electoral Bills. It will continue to
punish people uttering even mildly critical things about the president. It
will crush all demonstrations by civil society. It will not open the
airwaves to the opposition, neither will it repeal Posa or Aippa. This
status quo will not evaporate before March next year.

Mugabe has already started campaigning for the party with computers. His
party, he told us this week, has been infiltrated by "crooks" (what a
confession!) and there is "beginning to be conflict" among its leaders.

Will the MDC take advantage of this seemingly fractious scenario to gain
ground?

The political situation is very fluid. Tsvangirai - on his round-the-world
tour - could be missing an opportunity to mobilise before the election.

Tsvangirai still has to convince his supporters who cannot demonstrate or
wear party T-shirts that "the regime is severely under pressure at home".

"Pressure from the people is creating political victories for a free and
fair election; every week these incremental victories are serving to
strengthen our optimism that a free and fair election may indeed be possible
next year."

Hope you are right about this Morgan!

His optimism will be put to the test next month when the party is expected
to meet to assess the political climate before deciding on whether to
participate in the election or not. That is three months before polling. A
decision has to be made and fast too. People need to know where the party
stands. The long suspense is slowly turning into confusion about what the
MDC is planning.

"We shall be guided by the people, using raw facts on the ground on how far
the regime has sought to implement the spirit of Mauritius," Tsvangirai
says. It would be surprising if voters share his confidence that Mugabe will
bow to pressure.
Back to the Top
Back to Index

Zim Independent

Mugabe's ethnic jigsaw puzzle deepens

Dumisani Muleya

THE ruling Zanu PF's convoluted succession struggle has dramatically shifted
to another level of intensity after the nomination of a new set of leaders
to a somewhat repackaged pecking order, analysts say.

This has set the stage for a fierce showdown for President Robert Mugabe's
plum position, which could be sooner rather than later if this week's events
are anything to go by.

Political analysts think the bruising succession battle showed, more than
anything else so far, that the contours of Mugabe's regime, its substance of
power and authority, as well as leadership continuity, are difficult to
define or take for granted.

Mugabe got a clean sweep by securing 100% of the provincial executive
councils' votes without any challenge, his first vice-president Joseph Msika
70%, second vice-president Joyce Mujuru 60% and chairman John Nkomo 60%.

Mujuru - who had the backing of the powerful Women's League and her
influential husband, retired General Solomon Mujuru - shocked Zanu PF
secretary for administration Emmerson Mnangagwa, until now widely regarded
as Mugabe's heir apparent, when she came out on top.

Analysts say the outcome of last weekend's Zanu PF selection process - which
changed the direction of the succession plot but not the matrix of power -
proved that ruling party politics are currently in a dangerous state of flux
and thus unpredictable.

They say the succession issue is still yet to be resolved as the current
fight was largely over crumbs from Mugabe's table and not the real substance
of power.

University of Zimbabwe political analyst Eldred Masunungure said the power
struggle in Zanu PF was far from over. He said it would continue until
outstanding political, ethnic and regional issues were adequately resolved.

"Definitely the political complexion of the Zanu PF succession struggle has
changed but the issue still remains unfinished business. Notwithstanding
Mujuru's nomination, the succession issue still has to be resolved," he
said.

"We may well be seeing the beginning and not the end of the issue."

Another analyst, Professor Brian Raftopoulos, said although Mujuru's
nomination was a "masterstroke" by those who wanted to shut out Mnangagwa,
the succession crisis would for sometime remain simmering.

"For now Mugabe's position still remains unassailable because he is not
under open challenge and no one has the capacity to do so, but the question
of who will take over from him still lingers," he said.

"The nomination of Mujuru was a masterstroke for Mnangagwa's rivals but
those who lost, including the Young Turks such as Patrick Chinamasa and
Jonathan Moyo, might still want to fight back to recover lost ground."

Zanu PF, which its critics say presides over an authoritarian political
system, has been grappling with the succession problem for a long time now.

Mugabe seems unable or simply unwilling to disentangle the issue. His
critics say he is using it as part of his flimsy explanations to cling onto
power.

Authoritarian regimes have generally been considered to be fragile in that
they are unable to cope with adversity, resolve internal conflicts, respond
to shifting interests and demands, and to ensure a smooth succession in
leadership.

Zanu PF fits this description except that it has always worn a democratic
mask, which has however now fallen irretrievably.

Masunungure said although Mnangagwa, who is also Speaker of parliament, was
outmanoeuvred by his rivals, the succession fight would still rumble on.

"Mnangagwa was outmanoeuvred but he might still attempt to regain lost
ground maybe through irregular political machinations. So Mugabe now has to
manoeuvre fast, carefully and craftily to ensure cracks in his party which
were widened due to the nominations do not continue widening," he said.

"The resolution of the issue of one of the vice-president's positions has
created others problems around the succession struggle which is a
continuation of past power struggles dating back to the liberation war."

Masunungure said the Zanu PF nominations created other problems with an
"ethnic character".

"Problems with an ethnic character have emerged due to changes in Zanu PF's
arithmetic. The ascendancy of Mujuru who hails from the same Mashonaland
region as Mugabe sharpens ethnic contradictions in the party," he said.

"The implications and repercussions of this might create a resurgence of
other problems. A Pandora's box has been opened and a fluid situation
created. So before Mugabe quits he has a lot of homework to do if he wants
to leave Zanu PF at peace with itself."

Masunugure said the exclusion of the Karanga and Manyika people from the
Zanu PF presidium might create a groundswell of tribal and regional
discontent.

"In terms of ethnic representation at the top the Karangas might feel
injured about what appears to be marginalisation of a large ethnic bloc," he
said. "The Manyikas who have been longing for recognition and the need to
rise to the apex of power for a long time might think they have again been
left on the periphery of the political kingdom. They might feel aggrieved."

Ethnic friction has been existing for sometime before and after Independence
in 1980 but suppressed through various methods, including violent ones.

But now times have changed and sophisticated ways have to be found to deal
with the problem before it becomes unmanageable.

Mnangagwa's group was said to have factored in this ethnic consideration in
its masterplan which accommodated four major groups, Zezuru, Karanga,
Manyika and Ndebele.

Insiders claim that the camp wanted Mugabe to represent Zezurus, Women's
League chairperson Thenjiwe Lesabe to stand for Ndebeles, Mnangagwa to
represent the Karangas and Chinamasa, Zanu PF secretary for legal affairs
who lost to Nkomo, to stand for the Manyikas.

Moyo, who is Zanu PF deputy secretary for information, who was reportedly
aligned to the Mnangagwa camp, was earmarked to become secretary for
administration, July Moyo secretary for security and Shuvai Mahofa secretary
for commissariat in the politburo.

However, Mugabe appears to still value the Unity Accord as opposed to the
delicate ethnic balancing arrangement. He said in August that he still
wanted two vice-presidents to honour the agreement.

Analysts say the crash by pretenders to the throne and opportunists riding
on Mnangagwa's bandwagon showed that Zanu PF was still firmly in the grip of
the old guard.

The nominations also showed, they say, no one in Zanu PF is guaranteed of a
position, except Mugabe himself, at least in the meantime. They further
indicated that seniority and experience in the hierarchy might in the future
not be the only decisive factors in the contest for power.

Credibility and leadership qualities, which are terribly lacking in most
Zanu PF politicians, may become the crucial prerequisites.

The cliché that there are no permanent friends and enemies but only
permanent interests in politics was also proven true by the outcome of the
Zanu PF polls as some officials joined hands with their hitherto
adversaries - for instance Mnangagwa and Moyo - to achieve a common
objective, which was to win power.

Back to the Top
Back to Index

Zim Independent

Comment

Mujuru wins despite media blackout
WHILE official spokesmen had been claiming on Saturday that reports of Joyce
Mujuru assuming the vice-presidency were a "media construct", reality
appears to have intruded with her official nomination for the post on
Sunday.

President Mugabe's confirmation that the politburo would back a woman
candidate came on the same day as his media spokesmen were claiming Mujuru's
"robes" had been "stolen" by newspapers such as the Zimbabwe Independent
which had reported on her likely elevation once a woman candidate had been
given the nod by the

ruling party's decision-making body.

Mujuru had not even been consulted, it was haughtily suggested, as the names
of rival candidates were aired.

ZTV interviewers had on Friday been clumsily rubbishing the Independent's
story. But by Sunday it had been confirmed and Mujuru emerged from the
provincial executive councils as the preferred choice of party barons.

This of course, as we reported, has serious implications for Emmerson
Mnangagwa's ambitions. Only Joseph Msika's premature retirement will now
open a door to the once powerful secretary for administration and Speaker of
parliament who appears to have been ambushed by a faction centred in
Mashonaland provinces but with powerful connections elsewhere. Indeed, he
may have been the victim of an ABM movement - anybody but Mnangagwa - which
explains the dramatic rise of a candidate not known for her political clout
in a party where gender sensitivity does not usually extend much further
than women bearing an impression of President Mugabe on their skirts.

If Msika were to step down, his most likely successor would not be Mnangagwa
but John Nkomo who defeated the Midlands heavyweight and former security
supremo in the battle for the national chairmanship in 1999. He is likely to
attract many of the votes which Mnangagwa has been courting in the western
provinces. Nkomo is also ultimately the candidate of the ABM crowd when the
presidential chips are down.

Patrick Chinamasa's candidacy for the chairmanship - his first election for
anything - was clearly inspired by the opportunists around Information
minister Jonathan Moyo who have been trying to block Mujuru. They saw
Mnangagwa as their best chance of preferment with Thenjiwe Lesabe as the
other vice-president and Chinamasa in the national chairman's seat. Under
this cosy arrangement, that fell apart in Sunday's deliberations, Moyo would
have assumed the influential post of secretary for administration left
vacant by Mnangagwa.

Once again in this struggle we see the public media prostituted by one
faction to head off a challenge from another. The complete absence of a
report in the government press on last Thursday's emergency politburo
meeting which effectively paved the way for Mujuru tells us all we need to
know about media manipulation. The Herald's explanation yesterday that it
was holding onto the story until it could be verified will be believed only
by the very gullible.

How then does the Herald explain its failure to report on Sunday's
nomination results, which saw setbacks for Mnangagwa's backers, in Monday's
edition? Only when party luminaries began to comment on the outcome did the
Herald feel compelled to publish the results.

This comes at a time when the screws are being tightened on the independent
media ostensibly to ensure balanced reporting. The public are evidently
being denied their right to information when that information proves
inconvenient to those controlling media levers. Exactly how Zimbabwe's
sovereignty is protected by partial and unprofessional reporting on matters
which have

a direct bearing on the country's future is difficult to under-stand.

The South African Communist Party recently pointed out, in response to
claims by the leader of the ANC Youth League that Zimbabwe had many
independent publications, there was on the contrary "an abundance of
information indicating a growing and targeted intimidation of independent
journalists and non-governmental media". The trend was "towards greater
repression and less democratic tolerance", the SACP said.

When the public media is so compromised it is unable to inform its readers
of events taking place in the centres of political power, it leaves the
independent press with a particularly onerous responsibility.

That we got it right on Mujuru's promotion while interested parties in the
state machinery were insisting we had got it wrong rests the case for a
media free of official shackles. Meanwhile, Zanu PF MPs who voted for Aippa
have been richly rewarded by those who have used it and abused it for their
own ends.
Back to the Top
Back to Index

Zim Independent

Eric Bloch Column

Democracy key to economic revival
RESERVE Bank of Zimbabwe (RBZ) governor Gideon Gono recently said at the
launch of the African Policy Institutes' Forum (APIF) that the year ahead
would be of mobilising foreign direct investment (FDI). With his virtually
unlimited optimism and positiveness, he proclaimed that "2005 will mark the
beginning of the seven years of plenty".

However, with considerable realism, he qualified his forecast by correctly
saying that we give foreign investors the highest assurance that their
investments will be fully protected from any "obstructive practices by any
untoward elements of society, individuals or groups". He also

acknowledged that Zimbabwe has been hampered by lack of implementation
capacity in both the private sector and in government to fully drive various
economic policies and also that "the confidence of the international
community" must be regained.

The governor is very correct that Zimbabwe has great potential to attract
investment, both FDI and domestic. After all, it has long been proven that
it can have an immensely virile agricultural sector.

Before government virtually destroyed Zimbabwe's agricultural sector, that
sector was the foundation of the entire economy. It provided employment and
a livelihood for many hundreds of thousands of people. It generated vast
amounts of foreign currency needed for a highly import-dependent country,
providing more than two million kg of top quality tobacco, exporting beef,
pork, sugar, citrus, tea, coffee, cotton of world-renowned quality and much
else.

It was the source of the resources of much of the consumer spending that
assured continuing demand for manufactured products flowing out of diverse
Zimbabwean industries. And despite the catastrophic state to which
government has reduced agriculture, with overall output at best equaling
about 30% of former levels, the sector can recover, if government belatedly
acquires the maturity to admit errors and transform.

But Zimbabwe's economic potential does not stem from agriculture alone.
Below its fertile soils, Zimbabwe has a vast, as yet only very minimally
tapped, mineral wealth. That wealth includes the 360 million ounces of
platinum reserves to which the governor referred when addressing APIF,
having a present day potential value of more than US$290 billion.

The same is true of the tourism industry. With the splendour of Victoria
Falls, the grandeur of the Matopos, and abundance of wildlife (although now
being critically eroded by almost wholly uncontrolled poaching and
irresponsibly great numbers of killings by trophy-hungry international

hunters), the beauty of Nyanga, Bvumba and the Save conservancies, the
magnificence of Lake Kariba, and great opportunities of ethnic and
eco-tourism, the potential of Zimbabwean tourism is almost without bounds.

And, despite the ravages of government's ill-conceived acts, Zimbabwe's
manufacturing sector is still the second greatest industrial infrastructure
within the region, capable of being restored to former glory, and more, and
being a key supplier to the population of more than 320 million people
within the region. Moreover, despite the many disasters within the financial
sector during the last year, Zimbabwe nevertheless has a large and viable
financial sector, reinforced by many high-calibre service sector
enterprises.

Notwithstanding, unless there is a dramatic metamorphosis within the arena
of political perceptions, and in the acts and deeds of government, in
contrast to its declarations of intent, the concept that 2005 will herald
marked investment into Zimbabwe's near derelict economy will be nothing but
a concept and unfilled wishful thinking.

Although the tangible components of an investment stimulatory environment
exist, nevertheless an investment conducive and welcoming environment has
yet to be created, for there is much that ails the economy to an extent as
deters investors from even contemplating investment. The missing elements
include that referred to by the governor, that there must be full protection
of investment from "obstructive" practices of society, individuals and
groups.

Government's track record of providing that protection is abysmal. It seized
more than 11 million hectares of agricultural lands, disregarding
international bilateral agreements, contemptuously dismissing that most of
those lands had been lawfully purchased, as distinct from government's
spurious justifications of alleged theft of the land by colonialists. And it
paid no compensation. Instead, it turned vast private sector investment into
zero value, impoverished great numbers, and brought agriculture to its
knees.

Now it is creating widespread fears that it is about to do likewise to the
mining sector. A few months ago the president threatened forced
disinvestments, in favour of the "indigenous" population, of 50% of the
mines. Since then the level of that disinvestment has been reduced to 20%,
but the mining sector is still left in a state of suspension as to its
future.

In turn, this is fuelling investor fears as to government's future
intentions in respect of the manufacturing, distributive, tourism, and
financial sectors. Such an environment does not promote investment. Who will
invest with an expectation that a portion, if not all, of that investment
will be expropriated?

An investor also wishes to know that he will be "the master of his own
destiny". He wants to know that if the investment is fruitful, it is
primarily due to him and his actions, and that if it fails, its failure is
in consequence of circumstances other than as created by government. To that

end, the intending investor seeks economies where there will be a minimum of
state interference into the private sector.

He favours the economies which are heavily deregulated, and driven by market
forces rather than by oppressive and excessive governmental dictates. Such
an economic environment is that which will be necessary if the confidence of
the international community is to be regained, correctly identified by the
governor as an essential.

And international confidence centres upon a combination of the economy
driven by good and sound economic fundamentals and by positive and
constructive monetary and fiscal policies together with an expectation of
continuing political stability, good governance and investment security.

With much foundation, the perspective of most of the international
community, and most of those Zimbabweans endowed with investment
wherewithal, is that whilst the last year has witnessed very pronounced
and - in the main - highly constructive monetary policies, and some
tentative but meaningful moves to towards a substantive fiscal policies, the
other essential ingredients do not exist. Few internationally, and equally
few in the domestic economy, perceive there to be prospects of economically
supportive political stability and good governance.

The overriding view is that for that to exist, and therefore for the economy
to develop and grow and to be attractive to investors, government will have
to demonstrate a genuine adherence to the basic and essential principles of
democracy. To that end, it will have to prove to a sceptical world, that the
forthcoming parliamentary election will be genuinely free and fair.

Back to the Top
Back to Index

Zim Independent

Exporters pocket higher rates
Chris Goko
THE Reserve Bank of Zimbabwe (RBZ) says exporters, mainly horticultural
players, who have been quick to liquidate their export proceeds have been
getting rates way higher than both the official $5 650:US$1 and implied $6
200 rate, it was learnt this week.

Information at hand shows that exporters, managing to repatriate their
foreign currency within the 30-day threshold, have been getting a rate of $7
130 to one greenback.

This is more than $1 000 above the central bank's bi-weekly auctions and
diaspora rate.

In a November 23 paper, Impact Of The Current Exchange Rate System On
Exporters, the bank's economic research division said nearly 70% of
exporters - managing to deliver scarce foreign currency in the shortest
possible time - have been getting rates on their 100% proceeds at above the
$6 200 peg.

Whereas exporters were getting a paltry $824 to the United States dollar
before January 12 this year, they now enjoy a depreciated rate and value of
more than 80%, the paper said.

"Compared to the levels that prevailed at the beginning of 2004, the
surrender requirement at Z$824/US$ has fallen from 25% to 10% for all export
proceeds repatriated within 31-90 days from date of shipment.

"At least 90% of exporters access 90 to 100% of their export proceeds at the
ruling auction or Diaspora rate whichever is higher," it said, adding the
export incentive scheme was markedly enhanced in April, July and November.

A number of exporters have negotiated their payment terms from 90 days to
receiving advance payments - from mainly international debtors - within the
30-day period, meaning those who have been promptly ceding their money in
Zimbabwe are not subject to the measly $824 rate, but higher blended rates.

"Where an exporter accesses the 15% FOB (free on board) export incentive
scheme for every US$1 of exports, the exporter is entitled to a rebate,
which effectively increases the US dollar value of his exports at a higher
blended exchange rate of Z$7 130/US$1 if the proceeds are received within 30
days," said the RBZ.

It said that the proportion of exporters benefiting from this arrangement
rose from 26% in January to nearly 80% by last month.

The analysis also shows that those managing to bring in money within the 31
to 90 day period - through the acquittal of CD1 forms - have been earning $6
511,76 for their dollar and a 90% auction-sale allocation.

While those in the 91 to 100-day bracket receive $2 more than the implied
rate, they cede 85% to the mandatory auctions.

Exporters liquidating their money after 100-plus days, but below 120, are

compelled to surrender 80% of their proceeds at an effective rate of $5
893,52 to the greenback - still markedly higher than the auction rate.

The exporters, who include gold producers, in January retained 50% of their
foreign exchange earnings in foreign currency accounts (FCAs), while 25% was
availed on the auction mechanism at the ruling rate of $3 500 to the US
dollar then.

Observers this week said the central bank's "carrot and stick" measures,
which it says have greatly discouraged illegal dealing in foreign currency,
improved foreign exchange inflows and formalised the key exchange market,
are tantamount to devaluation.

The bank prefers to call the blended rate arrangement a "fair value"
incentive for exporters' survival and competitiveness internationally.

Back to the Top
Back to Index

Zim Independent

Ambitious industrial revival plan on cards
Godfrey Marawanyika
THE government has come up with yet another ambitious six-year
industrialisation plan whose success is hinged on support from broader
business sectors and labour, businessdigest learnt this week.

The 2004-2010 Industrial Development Policy (IDP), spearheaded by Samuel
Mumbengegwi's Industry and International Trade ministry, is founded on the
principle of tripartite participation in decision-making and goal-setting.

Zimbabwe, hit by the sterility of a number of policy blueprints unveiled in
recent years, hopes the IDP would ignite meaningful commercial activity,
arrest massive de-industrialisation and 70% job losses in the economy.

Its strengths, the promoters say, lie in the transformation of primary goods
into processed goods.

The policy also insists on high-growth sectoral development approaches that
the government has singled out the agro chemicals, arts and culture, cement,
clothing and textiles sectors as some of those priority-development sectors.

Also included are the construction, electronics, fertiliser, food,
furniture, jewellery, metals and steel, motor industry, pharmaceuticals,
wood and tobacco manufacturing sectors.

Harare's recognition of labour, largely represented by the Zimbabwe Congress
of Trade Unions (ZCTU), as a key component of the economic thought-process
marks a departure from its tough stance not to involve labour in many policy
issues because of labour-support for political opposition groups.

Reads part of the policy document: "In order to fulfil our vision of the
industrialisation, close co-operation between, business and labour is
imperative.

"Industrialpolicy is found-ed on the principal participation in
decision-making, goal-setting and correspon-ding tripartite acceptance of
responsibility for the successful implementation of the strategy," it said.

While relations have soured to an extent that mainstream labour, led by the
ZCTU, has pulled out of the existent tripartite negotiating forum, the
government has pledged to make appropriate policy interventions.Under the
plan, the government hopes that the private sector will identify, recommend
and implement strategic action plans on a subsector basis.

On the other hand, government also expects labour to mutually support the
industrialisation process through commitment to enhanced productivity and
international competitiveness, which is a veiled plea that labour moves away
from previous calls for damaging countrywide strikes.

"Wage rate increase, which are tied to the corresponding increase in
productivity will duly ensure price stabilisation," the document says.

On its part, government has provided softer productive sector funds (PSF) to
the tune of $2 trillion.

It also says it will continue to explore ways of enhancing tax incentives in
respect of value addition in priority areas.

"...Concessional funds will be provided in the focussed sub-sectors.
Policies that encourage investment in new technologies that modernise
operations and enhance capacity utilisation will be pursued."

Last month, the government also launched the country's fifth economic
recovery paper, which will run for two years.

Government, however, concedes that the existence of bottlenecks of financing
has really affected the productive sectors and the PSF assistance is not
enough.

Back to the Top
Back to Index

Zim Independent

Zimbabwe set to survive IMF chop
Godfrey Marawanyika
ZIMBABWE is likely to escape being axed from the International Monetary Fund
(IMF), as it continues to give positive economic recovery signals by
significantly moving to reduce arrears with the global lender, analysts said
this week.

Harare, which managed to pay US$115,16 million of its IMF debt over the past
year, received a huge boost when African department director Abdoulaye
Bio-Tchane, who visited the country early November - depicted a scenario of
thawing relations between the two parties and tacitly indicated that
Zimbabwe's compulsory expulsion was nearly off.

And at a time Zimbabwe has been actively engaging the IMF, Bio-Tchane said,
after meeting President Robert Mugabe, that the Fund was satisfied with the
country's debt settlement method.

Mugabe, himself a fierce critic of IMF-driven reforms, placed a positive
gloss on Harare's no-choice embrace of its help and this was after years of
strong admonishment of the World Bank partner's principles. He feels its 90s
economic structural adjustment experiment in Zimbabwe is largely responsible
for the near-collapse of the economy - six years in recession and rapidly
contracting.

The anticipated escape also comes at a time Harare was given a six-month
grace period to work and refine its repayment plan to the Fund around June
this year.

Best Doroh, a senior analyst with banking group Zimbabwe Financial Holdings
Ltd (Finhold), said the current move to pay up the IMF debts was welcome,
but more could be done to improve working relations with the key
multilateral funder.

"This is certainly a positive development. If we continue making those
payments it shows that we are serious on mending our relationship with them.

"But we should first pay up our dues and then we would be able to start
talking in terms of accessing funds again," he said.

The Harare-based economic commentator said the existent cordial relations
could only be enhanced or strengthened by more diplomatic work, which
Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono has sharpened.

With the IMF having already expelled fellow African countries such as the
Democratic Republic of Congo, the former Zaire and strife-torn Sudan, the
Fund's executive board was to consider Zimbabwe's expulsion next month.

While local authorities and the IMF representative discussed
macrostabilisation, substantive structural reform and governance issues,
among other cooperation steps, Bio-Tchane's statements that Harare had to
grab "this window of opportunity" proved to be an olive branch.

"I explained (to the president) that the Fund wanted to work with the
authorities to help Zimbabwe achieve its full potential and to integrate the
country more closely with the international community," he said.

"In order for the IMF to help Zimbabwe, the authorities need to seize this
window of opportunity to demonstrate strengthened cooperation with the Fund
before its executive board next considers the issue of Zimbabwe compulsory
withdrawal."

Since 1999, Zimbabwe has attained a bad boy tag from the international
lending community for failing to settle outstanding dues amounting to US$1,2
billion.

Analysts say by failing to service the IMF debt, Zimbabwe was accruing
interest charges to the magnitude of US$16,36 million per quarter.

Bio-Tchane's further comments that "concerted efforts to rebuild relations
with other official creditors" such as the African Development Bank and the
main World Bank will over time lead to greater external financial support -
to sustain Zimbabwean efforts and policies - also give rise to the hope that
the country will escape pariah-status exclusion.

Although the country may escape total economic sanctions, funding will not
resume immediately, the African IMF boss also said.

CFX Merchant Bank business analyst Blessing Sakupwanya said Bio-Tchane's
fact-finding mission was more than an important milestone and, therefore,
Harare's delicate handling of the discussions was likely to hand it an
escape from the chop.

"The visit by the director for Africa department last week was meant to
familirise the institution with what is happening on the ground. The IMF was
mostly concerned with what was happening within the financial sector," he
said.

"Judging by what the director said on Zimbabwe, although he could not
pre-empt (the IMF's December agenda), it is almost certain that Zimbabwe
will not be kicked out.

"From what he (Bio-Tchane) said, they are going to support us with advice,
but in stages, especially in the financial sector," Sakupwanya said.

His views corroborated what Gono said after their meetings: that they had
discussed broad-ranging issues, including financial sector reforms that also
include the formation of the Zimbabwe Allied Banking Group project.

The central bank governor confirmed that they were receiving "informal
advice" from the Fund on a number of issues.

Another central bank official said although they had made headways in
mending relations with the IMF, the country still needed to work on its
creditworthiness.

"A number of investors and financiers always take a cue from the IMF to

either finance or get credit. A number of institutions rely on the IMF," he
said.

As at the end of October this year Zimbabwe's debt to the fund had declined
to US$185,84 million, from a peak of US$301 million at the end of last year.

However, the global financier is still concerned with the problems affecting
the country's financial sector which has led to it revising its intial
growth projection for Zimbabwe.

In May the IMF had anticipated that Zimbabwe's gross domestic product would
grow by 5% next year but because of the problems which rocked the financial
sector during the third quarter it is now projecting that next year's GDP
would only grow by 1%.

Back to the Top
Back to Index

Zim Independent

Desperate Zim mortgages critical assets
Chris Goko/Ndamu Sandu
CHINA last month closed in on investment-starved Zimbabwe, wrenching key
business agreements, including coal mining concessions and platinum refining
deals, businessdigest has learnt.

As well as equity participation, several Beijing investment fronts - mainly
state-linked corporations - are taking positions in greenfield projects such
as tolling of platinum group metals (PGMs).

PGM beneficiation is currently dominated by Anglo American Platinum
(Amplats) and its Zimbabwean peer, Zimbabwe Platinum Mines Ltd (Zimplats)
and another Great Dyke miner Mimosa.

Most of lead producer Zimplats' matte is refined at Implats' Rustenburg
works in South Africa. The Chinese arrangement would be totally new.

Comprehensive investigations by this paper showed that individual
Sino-Zimbabwe contracts had an average lifespan of up to eight years.

While the oriental merchants wrestled a 70% stake in the Chaba coal mining
concession, to be jointly developed with Zimbabwe's power utility Zimbabwe
Electricity Supply Authority (Zesa) which bodes well with China's coal
specialty, authoritative government sources this week said they were also
interested in platinum beneficiation.

Expanding on stand-in Finance minister Herbert Murerwa's pronouncements on
Wednesday that the Chinese were certainly interested in the platinum sector,
the source said: "They may not be coming to dig platinum, but are more
concerned with the refining process."

The Asian economic powerhouse had been driven by vast uses of PGMs in the
Far East region and native China.

China, the sixth largest economy in the world and managing annual growth
rates of nine percent over the last quarter century, has an overheating
economy busting with technical manufacturers.

Despite the fact that no corporeal platinum deal has been signed, the timing
of the Chinese's announced PGM interest coincides with measures - disclosed
by Harare - to further open up the platinum sector, with 50:50 ventures
lined up between existent partners and any interested investors.

To this end, high-level meetings are scheduled for SA next week to expand on
the chosen path.

With the Chinese advances secured by way of barter deals, where Zimbabwe
will export commodities, the China National Aero-Technology Corporation
(Catic) is set to develop Chaba - formerly given to competing Malaysia's
YTL - to provide coal fodder for Zesa's steam generating Hwange plants.

Sydney Gata, the Zesa executive chairman, argues that the independent
development of coal resources not only guarantees a steady supply of product
for electricity generation, but also lower power tariffs in the long-run
because per tonne costs (of coal) would have fallen from US$31.

Gata, who bagged US$143 million of the US$293 million hunt when Wu Bangguo's
men touched down in Harare, will plough the money into rural electrification
and urban distribution networks rehabilitation.

China, whose Huawei Technologies netted an accumulative US$322 million worth
of telecommunications deals, is to immediately invest US$28 million in
state-run Tel*One's expansion, managing director Wellington Makamure said.

Makamure would not say whether the telecomms giant was aiming at taking
stakes, but emphasised that the phased investment would take Zimbabwe's
land-based lines to 1,2 million by 2009.

With a national subscriber base of just 350 000 and the country's
tele-density falling way below United Nations expectations, the wireless
loop investment would see over 150 base stations being installed between now
and 2006.

Unlike Gata, who will repay through commodity exports and part shareholding,
Makamure said his Huawei arrangement was self-financing and that the
five-year Tel *One growth plan would require US$400 million equally shared
in foreign cash and local resources.

Much as he is required to pay a 15% deposit for the first phase expansion,
Makamure would not say whether he would raise local money instruments like
Gata, who has launched electricity bills.

The Chinese, immediately availing US$350 million, are also angling for
investments in agriculture, aviation and railways.

Back to the Top
Back to Index

Zim Independent

Inflation decline - no need for scepticism
By Epifania Gorowa
INFLATION has continued to tumble, with the year-on-year figure for October
registering 209%, some 42,5 percentage points down from September's 251,5%.

As the figure decelerates, it appears there is hope that the central bank's
adjusted forecasts of between 150 and 160% from the previously announced
200% may be attained in December.

However, month-on-month inflation has climbed 10,1% owing to increases in
meat, vegetables and posts and telecommunications prices.

It is clear that there are misconceptions by the general public who remain
baffled as to why inflation is said to be declining when consumer goods are
escalating. The misconceptions have led to the Central Statistical Office
being accused of conjuring up inflation figures.

The Consumer Price Index (CPI) is used in calculating y-o-y and m-o-m
inflation figures, which entails reviewing the percentage change in the
average price of a basket of goods within that current month or year as
compared to the previous year.

The rate of increase in last month's index (10,1%) is lower than the rate
that was witnessed at the comparable period last year (25,3%). Debate has
arisen as to whether the "basket of goods" is sufficient to come up with
accurate information, or some items should not even be included.

To a large extent the country does not possess all the intricate information
requirements that would aid in forecasting inflation, for example the
application of advanced statistical and mathematical methods in search of
economic solutions (econometrics). There is need, therefore, for the
Consumer Council of Zimbabwe to fully educate the public on such issues.

Paraphrasing from the Third Quarter Monetary Review Statement regarding the
war against the "venomous viper" - inflation, progress can be attributed to
increased capacity utilisation, tight money-market conditions and fiscal
discipline.

There certainly has been decreases in the money-supply growth as portrayed
by the figures released (January - 490,9% and August -320,6%) working
hand-in-hand with a tight monetary policy.

However, it's generally believed that the effects of the policy on inflation
can be felt more within the long-run rather than in the short-term.

As for fiscal discipline, this has come in the form of increased efforts in
streamlining expenditure in productive rather than wasteful activities and
raising capacity utilisation.

On the other hand, this week has been the lull before the announcement of
the 2004 Budget which takes the role of a compass in giving direction.

Obviously, there are various expectations from the sectors within the
economy as to whether their pleas have been heard. No doubt large
allocations will go to capital developments seeing that our present
infrastructure still leaves room for great improvements and to the
agricultural sector.

Widening of the tax-band will be applauded by many as it will ease (to a
certain extent) the marauding effects of economic hardships. Recalling the
last budget, the upper limit of the non-taxable band was $2,4 million per
annum whilst currently it's pegged at $9 million per annum.

Approximately $990 billion was allocated to capital developments amid
complaints that it was not enough to carry out all the upgrading and
expansion activities like construction of the Harare-Bulawayo dual
carriageway which to date has only been completed up to Norton.

The question is, do the allocated amounts ever satisfy any sector?

The last budget summed up to roughly $8,74 trillion, and many are wondering
what it will sum up to this time.

I agree totally with those who proclaim that extra attention should be paid
to transport, especially within the urban areas.

 Any opinions expressed reflect the judgement of the author, and do not
necessarily reflect the opinion of Sagit Financial Holdings or any of its
subsidiaries and affiliates.

Back to the Top
Back to Index

Zim Independent

Muckraker

Zanu PF's month of the long knives
HAS Nathaniel Manheru been reading the papers lately? On Saturday he tried
to dismiss Joyce Mujuru's nomination for the post of vice-president. This
was a "media construct", he declared.

The Saturday Herald was made to lead with a little story about a missing
baby being reunited with its family to avoid the seismic movements going on
in Zanu PF that left Manheru, Lowani Ndlovu and Jonathan Moyo with egg all
over their face.

As it turned out, Mujuru didn't need Moyo's newspapers to get the
endorsement she needed. It was left to the Zimbabwe Independent and the
Daily Mirror to scoop Pikirayi Deketeke who thought burying his head in the
sand would prevent the unfolding reality before him.

By Sunday the "media construct" had metamorphosed into the woman candidate
called Mrs Joyce Mujuru. Six provinces had nominated her. The selection of a
woman had the support of the president.

How could Manheru be so far off the mark about "a vigorous debate" going on
under his nose? A case of the wish being father to the thought! With or
without any media coverage, Mujuru still managed to knock out a number of
competitors who thought they had it in the bag.

Then there was what looked like an attempt to push Jonathan Moyo's candidacy
amidst strident complaints that the criterion of seniority is being used
selectively. Why was Moyo being dismissed as a mafikizolo, complained
Manheru bitterly on his master's behalf.

The simple reason Moyo does not feature in the succession debate is that he
doesn't qualify. His overweening control of the state media hasn't managed
to ingratiate him with the top echelons of the party. Instead he has managed
to alienate many of them.

Nobody likes naked ambition, especially when combined with the abuse of
power.

We are also not aware of Moyo's secret admirers who Manheru conjures up. Nor
those who hate him. But we certainly are aware of those who hate his plan to
shut down all private newspapers because he wants only his own voice to be
heard. While he claims to be in favour of "vigorous debate and ideas", he is
in fact a political coward suing papers that expose his hyprocrisy and
closing down those which he can't bully.

Meanwhile, one of Moyo's many surrogates, Cde Under the Surface continues to
sink into irrelevance. He appears to see enemies of Gideon Gono everywhere.

This week he accused the Independent of sabotaging the Zimbabwe Allied
Banking Group initiative. The ZABG is a result of at least seven banks that
have closed down. Some of those banks will also lose their licences whether
Cde Under wants to hear this truth or not. This is just as true whether
Lowani Ndlovu believes his semantics about banks being liquidated or placed
under curatorship. The ZABG is a monument to bad corporate governance and
that has nothing to do with Gono as an individual.

Efforts to paint a rosy picture of the tourism sector don't seem to be
working. If anything, there has been a significant decline since the launch
of the land reform programme. The Sunday Mail's Business section reports the
movement of passengers and cargo airlines in and out of the country "has
declined by 58% and 55% respectively since 1999".

As usual, all is blamed on the "negative perceptions" of the country
portrayed by the local and international media.

What became of the "Come to Victoria Falls, Down in Zimbabwe" video that was
launched with so much fanfare in Victoria Falls and Johannesburg? The
Ruvhuvhuto Sisters were roped in to give the video the illusion of a country
at peace with itself. Nobody believes the propaganda and tourists have
evidently decided to keep their distance until the situation is really back
to normal.

Incidents like the harassment of the Congress of South African Trade Unions
delegation at the beginning of the month can only make a bad situation
worse.

Is December going to be the month of the long knives - or the tall
"knaves" - for Zanu PF? That is if President Mugabe's fire and brimstone
speech in Matabeleland North this week was anything to go by. Leaving aside
for a while his traditional enemies, the MDC and Tony Blair, Mugabe focused
on his own Zanu PF party which he said was riven by infighting for top
positions. He talked of "divisive elements" trying to sway voters using
money and other cunning strategies.

"We are going to congress in the next week and we want delegates to be aware
of these clandestine and cunning knaves," he said.

"There are crooks in the party who want to get posts at whatever cost. The
names will be revealed because they have been using money from white
capitalists, some of them who even have links to Britain."

We hope these are not going to be the same idle threats as we heard last
year about recalcitrant multiple farm-owners. Are we really going to see
action this time round?

Talking about multiple-farm ownership, has there been progress on that
front? Are we to believe that there are untouchables in Zanu PF who can defy
party policy and still call themselves loyal party cadres?

We ask this after government last week announced yet another land audit, a
clear sign that all is not well with the land reform programme. Land
preparations still lag far behind, inputs are reportedly in short supply
while senior party officials are said to be fighting over the occupation of
farmhouses instead of getting on with the business of farming.

We can have as many land audits as there are ministers to undertake them,
but so long as their findings are not implemented simply because they do not
endorse the view of a successful programme, then we are wasting everybody's
time.

Economic commentators can be forgiven for getting their recovery programmes
mixed up. There have been so many of them that it is difficult to know which
one is currently operational.

First we had Esap in 1991, then Zimprest (Zimbabwe Programme for Economic
and Social Transformation) in 1996, Merp (the Millennium Economic Recovery
Programme) in 2000, and Nerp (the National Economic Revival Programme) in
2003.

None of them worked because government allowed populist posturing to take
precedence over fiscal prudence.

Now we have "Towards Sustained Economic Growth" which forms part of the
Macro-Economic Policy Framework for 2005-6.

The Sunday Mail's business reporters think there was something called a
National Economic Recovery Programme in the middle of all this whose "gains"
the current thrust is meant to "consolidate".

Dr Herbert Murerwa, who was the Minister of Finance in 2000 and who dismally
failed to achieve macro-economic stability under Merp, is back in charge on
account of the real Finance minister being unavoidably detained for having a
macro-economic plan of his own.

The main thrust of fiscal policy, Murerwa says, will be focused on
sustaining the current "turnaround".

Will that be the same turnaround he achieved when he was previously Finance
minister, we should ask? Government borrowing will be maintained at levels
consistent with the monetary targets necessary for further reduction in
inflation, he says. Requests for unbudgeted amounts by ministries will not
be supported, he warns.

So who approved the proposed handouts to liberation war detainees and
collaborators? How does that fit into his scheme of things?

Gideon Gono said in his third-quarter statement that such unbudgeted items
would not be countenanced. But then it would appear he was sat on by the
usual suspects because within a week he was saying such expenditures were OK
with him. They wouldn't rock the fiscal boat, he assured the country. And
what else will he be pressed to OK as the election looms?

There is something delusional in the current talk of a turnaround. Companies
are going under every week. And no investor will put his money in a country
where ruling-party supporters can invade his property and seize control, or
where policy, as in the mining sector, is subject to capricious political
intervention.

Zimbabwe has signed a number of bilateral investment agreements with various
countries and scrupulously ignored them all.

Then there is the "master plan for tourism" which Murerwa thinks will do the
trick for a once thriving sector. Aggressive marketing of tourist
destinations and strategic alliances with operators are his answer to
"challenges associated with the perceived country risk".

He would be better advised tackling selective application of the law and
racist rhetoric by the country's leaders. As we said earlier, nobody wants
to visit a rogue state where they could be targeted by government supporters
because of their presumed country of origin. The Bennett case and a new raft
of repressive laws have done more for "negative perceptions" than any
"hostile media" could have done.

What we have now is a chain of self-deception about the economy. One tour
operator, for instance, told the Sunday Mail that the tourism master plan
would give the country an advantage over others in the region. Perceptions
would "certainly change", she ventured. Other players should put in place
plans "to enable them to cope with the huge tourist arrivals" that will be
"triggered by the new recovery plan" and Zimbabwe's designation as an
approved destination by the Chinese government.

All completely delusional of course, but grown-up people are actually
repeating these official mantras as gospel truths.

Thank goodness for Zimsun CEO Shingi Munyeza who had to spell things out for
Pollyanna tour operators.

"Nothing significant has been realised from the Chinese," he reported last
week. "The Chinese travel in volumes but they are not the best of spenders."

Occupancy levels at Zimsun hotels, Munyeza reported, were at 36% compared to
39% in 2003. Meanwhile, Zimsun had to cope with a 700% hike in electricity
bills courtesy of the state-owned power provider, Zesa, which hasn't been
told about the turnaround!

Compare this dose of cold realism to the National Economic Consultative
Forum whose leaders appear ready to swallow anything. An NECF-sponsored
research team headed by Prof Chris Chetsanga, it was reported, recommended
that there was an urgent need to create a sense of patriotism among
Zimbabweans.

This could be achieved, the team said, by "making national and strategic
studies compulsory at all levels to change people's mindsets."

This would include carrying out "ethno-based learning", "citizen orientation
programmes" and making national youth service compulsory.

All this, it was fondly thought, would reduce the brain drain.

Some brains, it would seem, are already drained!

Talking of which, Professor Claude Mararike, despite his elevated title, is
sometimes induced to say some very silly things in the state media. Last
weekend, commenting on President Mugabe's congratulatory message to
President Bush, he pontificated as follows: "Behind the congratulatory
message, the president is saying if the people chose their leader, anyone
with other views has no business to challenge that decision."

What about the thousands of people who were stripped of their right to vote
by manipulation of the voters roll? Don't they have the right to challenge
that decision? What about those candidates who the courts have found were
deprived of their victory by violence or fraud? Did they not have the right
to challenge the outcome?

What does Mararike think he is doing telling us that the only people who
opposed the poll outcome were those "instigated by their financiers and
Western sympathisers"?

Those who lost loved ones or who were the victims of torture and coercion do
not need "foreign instigators" to tell them what to think of Mugabe's
"victory"!

The government media is replete every day with talking heads prepared to
endorse a stolen poll and blame the West for sanctions. But they educate
their kids in Britain and the US and send their families to work there when
life becomes impossible at home. Somebody should ask them to comment on that
little double standard!

We liked the bit in the Sunday News' story about African countries having to
spend a lot of money meant for development in hiring international public
relations consultants to counter negative publicity caused by "meddling"
Western countries.

Firstly, it would seem, these PR firms have difficulty countering the
evidence of a police state coming from Zimbabwe on a daily basis. Ask Woods
& Cohen. Then you have Ari Ben-Menashe causing untold damage to the state's
case by his poor performance in court, not to mention his dubious record.
And the public are asked to foot the bill because the government is
delusional and can't understand where the problem lies!

Meanwhile, the relentless propaganda goes on. This was the heading in the
Southern Times business supplement last weekend: "Botswana's inflation
 soars". And what was the appalling figure: 600%, 200%, 50%?

No. It was 7,7%.

This was alongside an article saying Zimbabwe had unveiled a new policy
framework "to buttress its largely successful new monetary policy to further
accelerate the country's economic turnaround and bring down inflation to
under 10% by the end of two years".

Notable "gains" so far included the increased availability of goods and
services and "the virtual disappearance of the parallel market".

Now that's news!

Back to the Top
Back to Index

Zim Independent

Letters

Come on cowards of the West!

"THE (International) Bar Council noted that after the imposition of the
sentence, Bennett's place of imprisonment was not revealed to his legal
representatives. When they did locate him, they found that Bennett, a family
man, had been stripped and clothed in a soiled prison garment that exposed
his genitalia and buttocks", the statement said.

"The Bar Council and the committee (the Bar Human Rights Committee of
England and Wales, the international lawyers' organisation) deplore such
flagrant and degrading treatment of a prisoner..." (Zimbabwe Independent,
November 12).

"The last time he was detained in Zimbabwe (Gabriel Shumba, human rights
lawyer) he was with a client... when security officers with snarling dogs
burst into the room. During his three days in detention he was hung upside
down and beaten with cables, bound in the fetal position, left to suffocate
in a nylon bag, and subjected to electric shocks for nine hours. He was
photographed naked and writhing in pain", (Globe and Mail, November 4).

"In a statement... South African Archbishop Emeritus Desmond Tutu said: It
is a situation where we cannot stand by watching a tragedy unfold without
becoming complicit through our apathy", Reuter, (Zimbabwe Independent, April
23).

Come on, Koffi Annan, Paul Berenger, the United Nations, Sadc, the United
States, Britain. Forget the Pope, we know he's not interested.

Forget Thabo Mbeki, we know which side he supports. When will you cowards of
the Western World and Africa have the guts to do more than just say
 "tut-tut" and "Deary, deary me?" Free and fair elections in March? Fat
chance.

PNR Silversides,

Harare.

Back to the Top
Back to Index

Zim Independent

Letters

IMF story a ploy to hoodwink us

THE front page story "IMF willing to help Zim", (Herald, November 19) on the
International Monetary Fund (IMF)'s willingness to help Zimbabwe is a
campaign strategy meant to make Zimbabweans believe that there are prospects
for a better life for all Zimbabweans under Zanu PF rule and helps expose
Mugabe's hypocrisy.

Interestingly, the same article makes it clear that the IMF itself cannot
lend any more money, but that the statement by the IMF does help open the
door for Zimbabwe to interested members of the donor community.

The article goes further to say that Zimbabwe needs to rebuild relations
with donors, and that Mugabe stressed the need to lure more investment.

But why did we as a country first strain our relations with the donor
community? Who is the donor community in the first place? Does the donor
community not include countries like the United Kingdom, the United States,
the Netherlands and others? Is this the same message that Mugabe and his
cronies are telling the people? Have we not been told that the 2005
parliamentary elections are anti-Tony Blair?

On an inside page of the same edition was a cartoon of MDC president Morgan
Tsvangirai in bed with a white woman supposedly in Brussels where he is said
to have held meetings.

What is wrong with Tsvangirai going to Brussels if Mugabe himself is
considering restoring relations with the donor community to bring back
investment? This is sheer hypocrisy on the part of Mugabe, (Information
minister) Jonathan Moyo and their mouthpiece, the Herald.

Mugabe and his cronies have told the gullible rural populace that Zimbabwe
can do without the assistance of the IMF.

I saw Emmerson Mnangagwa telling a crowd of Zanu PF supporters that Zimbabwe
has managed the past six years, so it can go it alone.

These are the lies that Zanu PF officials tell ordinary Zimbabweans to
justify

their anti-Blair election when they meet in their central committee and
politburo meetings, yet when they meet with the IMF they tell a different
story.

The latest development seems to suggest that central bank governor Gideon
Gono and Mugabe know very well that relations they are developing with China
and some Asian countries are not good enough to end the country's economic
woes.

The challenge is for the media, civic society, opposition political parties
and all Zimbabweans who want the suffering that we are going through to end,
to tell the true story of what is obtaining on the ground to institutions
such as the IMF and the international donor community.

There is ample evidence to convince the international community of the
Mugabe regime's dictatorial tendencies.

Just a few weeks ago (Local Government minister) Ignatious Chombo was

shown on television saying that chiefs should not sanction rallies by
political parties other than Zanu PF in the rural areas, and that chiefs
should take persons organising such rallies to task.

This is the reason why Justice minister Patrick Chinamasa, Mugabe, the
Herald and all the retrogressive and repressive elements of the Mugabe
regime have had sleepless nights over Tsvangirai's visits to other
countries. They are afraid Tsvangirai will tell Sadc, Africa and the rest of
the world the truth about political developments and the state of human
rights abuse by the Mugabe regime in Zimbabwe.

Mugabe, Chinamasa and the Herald must know that in the same way as there was
need for every positive-minded Zimbabwean to support the liberation struggle
one way or the other, it is also the responsibility of every Zimbabwean,
political affiliation aside, to support efforts to end the Zimbabwe crisis
which is a direct result of bad governance. That is why on some past visits
by IMF officials, they have also met with officials from the MDC.

The IMF and the rest of the international community should never be misled
by Mugabe. His record for human rights abuses is well-known and unless
tangible progress is made in redressing the human rights abuses in the
country, the donor community should continue to press him to stop as a
condition before they can open their doors to him.

To Tsvangirai and the entire MDC leadership, I say never tire. You are the
last hope for the suffering Zimbabweans. God will soon answer the people's
prayers.

Benjamin Chitate,

Harare.

Back to the Top
Back to Index