http://www.theindependent.co.zw
Thursday, 05 November 2009 21:58
IN
a move with damaging implications for investment, Zimbabwe plans to
grab a
51% stake in foreign-owned firms within 60 days of the gazetting of
the
Indigenisation and Economic Empowerment Act regulations, documents in
the
possession of the Zimbabwe Independent show.
The
regulations seek to transfer ownership of any foreign-owned
businesses
valued at US$500 000 or above to indigenous Zimbabweans in terms
of the
Indigenisation and Empowerment Act passed in 2007.
While
the Act has been public knowledge for several years, the
regulations reveal
a hardening of government's approach. The documents spell
out thresholds,
time frames and the process of compliance.
"Any business that
within the 60-day period referred to in subsection
(1) fails to enter into a
transaction that results in 51% or a controlling
interest, as the case may
be, being held by indigenous Zimbabweans shall
within the next 30 days
submit a proposal within the next six months from
the date of publication of
these regulations on how it intends to achieve
compliance with the Act,"
read the regulations.
Companies opposed to the proposed
legislation would be required to
show cause through Indigenisation and
Empowerment minister Saviour
Kasukuwere why they will not be able to comply
with the provisions of the
law.
Upon completion of the
transaction, shareholding should be transferred
inside a month or the
company should show cause to the Indigenisation
minister why the firm failed
to comply.
Three weeks from the date of adoption of the
regulations, the minister
would be empowered to effect a merger or
restructure if indigenous
Zimbabweans fail to acquire the controlling stake
in a related sector in
line with the Competition and Tariff Commission
rules.
But the shareholding in merged or unbundled businesses
will be lower
than 51%, according to the proposed
regulations.
The proposed regulations also state that foreign
investors can only
set up business in this country on the basis that a
controlling stake in the
investment is reserved for indigenous Zimbabweans.
Investors who have
attended successive investment conferences since the
formation of the
inclusive government at the beginning of the year have
spoken out against
government's indigenisation project.
South African mining magnate Patrice Motsepe who led a business
delegation
here in April reminded President Mugabe on the importance of
creating a
conducive environment.
"The critical thing is that the rules of
investment should remain in
place," Motsepe said. "The concern is that there
should be no shifting of
goalposts a few years down the
line."
If the regulations are gazetted without amendments,
government would
need proof of compliance with the empowerment law and carry
out
indigenisation assessment on an annual basis.
Mobile,
tourism, finance, transport, communication and construction
sectors will
need to attain empowerment within three years.
"When one looks
at the schedule," a legal expert who read the schedule
said yesterday, "the
impression one gets is that, for example, banks must in
three years attain a
minimum indigenisation and empowerment quota of 30%
when in fact a bank
should attain 51% by the end of the three years; 39% is
supposed to be
immediate, and the remaining 21% in the three years."
The
expert said the schedule was ambiguous or mum on numerous issues
emanating
from valuation of assets.
The expert questioned how valuations
would be conducted and whether
this would be arrived at using agreeable
formulas.
He asked: "For example, will this (valuation) be done
by asset value
or cash value and who will be evaluating this? What of assets
purchased
through loans? Will this not cause confusion?"
Apart from legal problems, the expert said it is not feasible.
Earlier this year, Kasukuwere told the Independent that government
would
not embark on a chaotic wealth redistribution.
There were
suggestions only a few weeks ago that the legislation would
be softened to
address the concerns of investors. But following the pullout
of the MDC-T
from its partnership with Zanu PF, there appears to be a move
to punish the
MDC-T which favoured changes to the Act.
Zimbabwe embarked on a
land reform exercise to correct historical
imbalances but Zanu PF officials
got the bulk of the prime estates. There
are fears the economy will be
similarly plundered.
Analysts fear the proposals in their
current form will shut the door
on potential investment and could benefit a
handful of politically connected
individuals at the expense of the
economy.
Chris Muronzi
http://www.theindependent.co.zw
Thursday, 05 November 2009
21:48
FORMER Kingdom Financial Holdings Ltd (KFHL) CEO Onias Makamba
got a
US$200 000 golden handshake from the banking group, businessdigest has
established. Makamba was eased out of the bank amid suspicion the executive
could have been siding with a camp controlled by then majority shareholder
in the banking group, John Moxon, at the height of a shareholder dispute in
the merged Kingdom Meikles Ltd.
He was sent on forced leave
in July in a move the market believed to
be a plan by KFHL founder Nigel
Chanakira to pave way for a smoother landing
ahead of a
de-merger.
According to sources, Makamba's problems with
Chanakira emerged after
KMAL announced it would convene an Extraordinary
General Meeting (EGM) after
another shareholder - Econet Wireless -
requested a meeting.
Chanakira is said to have accused Makamba
of concealing "material
information" from him about the de-merger and had to
recall him from the
negotiating process. Further allegations appeared when
the KFHL board sent a
team headed by Makamba to South Africa in July to
negotiate with Moxon, who
stands accused of smuggling US$22,5 million and
millions in rands, to
repatriate the funds back home.
But
market analysts feel that Makamba would have been axed anyhow
after
Chanakira got a 49% stake, the highest the banker has ever owned in
KFHL as
part of the settlement with Moxon.
With Makamba out of the
picture, Chanakira is calling the shots again.
The board,
according to sources, felt that the matter should be
settled "quickly and
fairly".
Ironically, the settlement was reached on October 13,
the same day KML
was meant to hold an EGM to consider de-merging and the
removal of directors
from both KFHL and Meikles boards.
The
EGM was, however, eclipsed by a settlement between Moxon and
Chanakira.
The board, according to the same sources, felt
that negotiations had
taken "considerable" time and needed a "quicker"
settlement.
As part of the separation settlement, Makamba will
also get the
official company vehicle at no cost.
Although the
US$200 000 is a given net cash payment, sources say the
gross payment would
be finalised by KFHL.
But market sources say there could be a
management exodus at the group
after several managers indicated an intention
to leave the growing financial
services group.
Chanakira
faces an uphill task to steer the bank back to its former
status and shake
off market perception linking him to Zanu PF and the state
amid accusations
he sought the services of politicians to settle a
shareholder
dispute.
Moxon was specified earlier this year and is waiting
for government to
revoke the order. He believes Chanakira got him
specified.
Ironically, Chanakira accused his then lawyer and
go-between with
Moxon, Tawanda Nyambirai of negotiating in bad faith in a
draft affidavit
before he fell ill a month ago. -- Staff Writer.
http://www.theindependent.co.zw
Thursday, 05 November 2009
19:24
A MAJOR political battle between Zanu PF and the main MDC wing
which
could further destabilise the already unstable inclusive government is
looming in parliament over the contentious Reserve Bank of Zimbabwe
Amendment Bill. The fight, coming at a time when the power struggle within
the coalition government is intensifying necessitating the current regional
diplomatic intervention, could fuel internal wrangling and widen cracks in
the gradually crumbling arrangement.
Informed sources said
Zanu PF was secretly mobilising to block Finance
minister Tendai Biti's
Reserve Bank of Zimbabwe Amendment Bill seen as
designed to contain and
weaken Reserve Bank governor Gideon Gono whom the
MDC is battling to force
out.
The MDC accuses Gono of destroying the economy through
massive
printing of money which stoked hyperinflation and led to the
decimation of
the local currency. Gono, backed by Zanu PF, however, says he
resorted to
money printing because of financial sanctions imposed by Western
countries
on Zimbabwe at the MDC's urging and has even written a book on the
issue.
But the MDC dismisses the sanctions argument and blames
President
Robert Mugabe's extended years of political repression, human
rights abuses
and economic mismanagement as the real causes of the economic
meltdown.
Sources said Zanu PF ministers and MPs were
mobilising through
parliamentary and party structures as well as other
platforms to block the
Bill which Biti and the MDC are determined to
railroad through parliament to
reform the central bank and ring-fence
Gono.
The sources said the Zanu PF manoeuvres are mainly intended
to prevent
Biti from becoming more powerful and ensure the removal of Gono.
The central
bank governor and his loyalists claim the Bill is draconian,
something which
Biti rejects.
Sources said although Zanu PF
did not have the required numbers in the
House of Assembly to block the
Bill, it would show its opposition to it in
parliament possibly next
week.
Zanu PF's campaign to stop the Bill is however being
undermined by
internal divisions on the issue. S
ome senior
Zanu PF officials who are hostile to Gono, including
Justice minister
Patrick Chinamasa, chairman of the cabinet committee on
legislation, do not
want to bring to a halt Biti's process.
Although the Bill was
cleared by cabinet, Zanu PF now wants to stop it
for political reasons. This
is despite an understanding in the Global
Political Agreement that once a
Bill has been cleared by cabinet all parties
are obliged to support it in
parliament.
Zanu PF's move would be designed to force Biti to
accept amendments to
the Bill before it goes to senate where the party has a
working majority,
boosted mainly by appointed senators and chiefs, to stop
it. Mugabe's party
hopes to block the Bill in senate if its campaign in the
Lower House for it
to be amended fails.
Although the main
MDC defeated Zanu PF in the parliamentary elections
last year, the polls
produced a hung parliament. After factoring in
Constitutional Amendment (No
19) and the Global Political Agreement,
including Jonathan Moyo's return to
his former party, Zanu PF and the MDC-T
more or less have the same number of
seats in the House of Assembly. Zanu PF
has a controversial majority in the
senate.
With all things being equal and if the parties in
government stick to
their understanding that if each one of them loses an MP
or senator, they
virtually replace them without opposition in by-elections
the situation
would reflect that Zanu PF and the MDC-T would have equal
numbers in the
House of Assembly after Moyo moved back to the former ruling
party. The
situation would mean no party could claim numerical superiority
in the House
of Assembly.
Sources said if the MDC-T secures
the support of the MDC-M it might
succeed in pushing the Bill through the
House of Assembly although it would
be blocked in senate. If the two houses
fail to resolve their deadlock in 90
days, the Bill may be presented to the
president for assent in the form in
which it was passed in the House of
Assembly, except for minor changes
required by the passage of time, provided
it then goes on to secure a
majority backing in the Lower House.
The constitution provides that any Bill, other than a money Bill, can
originate in the House of Assembly or senate. It gives powers to the two
houses of parliament to make Standing Orders, jointly or severally, with
respect to the passing of Bills. Each house is free to make any amendments
to any Bill that comes before it. Money Bills can only originate from the
House of Assembly.
House of Assembly and senate Standing
Orders provide that every Bill,
except to amend the constitution, shall
stand referred to the relevant
portfolio commit for at least 14 days upon
its gazetting.
Parliament's Standing Orders also provide that
after its introduction
the Bill shall be referred to the parliamentary legal
committee for 26 days
unless an extension has been granted by the president
of senate of speaker
of parliament. The Bill then goes to the second
reading, committee stage
where amendments may be proposed and finally third
reading. Thereafter it
goes to senate. Ordinary Bills are passed through a
simple majority while
the Bill to amend the constitution needs a two-thirds
majority.
Dumisani Muleya
http://www.theindependent.co.zw
Thursday, 05 November 2009
19:12
MASVINGO urban MDC-T MP Tongai Matutu on Tuesday moved a motion
in
parliament calling for an immediate audit of the voters' roll after
citing
gross inaccuracies and irregularities. The motion was seconded by
Makoni
South MP, Pishai Muchauraya (MDC-T).
This comes a month
after the research and advocacy unit of pressure
group Sokwanele carried an
audit unravelling several anomalies in the
current voters' roll administered
by the Registrar-General's office. The
Zimbabwe Electoral Commission runs
the election.
"Alarmed by the chaotic state of the voters' roll in
Zimbabwe as
evidence by the presence of names of deceased persons,
geriatrics over 100
years old, multiple entries and a multitude of general
inaccuracies . now
this House calls upon the inclusive government to
immediately carry out a
comprehensive audit of the voters' roll to rid it of
all inaccuracies and
irregularities," reads the motion.
Matutu said
government had over the years taken "little action" to
update the voters'
roll arguing that any poll carried out using the current
voters' register
would lack credibility.
The Morgan Tsvangirai-led MDC criticises the
allegedly flawed roll for
being part of Zanu PF's strategy to rig
elections.
Zimbabwe is expected to hold fresh elections after the
current
lethargic constitution-making process.
The Sokwanele audit
identified names of 74 021 voters aged above 100
on the roll used in last
year's harmonised parliamentary and presidential
elections. This figure
raised eyebrows given the country's life expectancy
of below 40 There were
also 82 456 people registered who are aged between 90
and 100, according to
the audit.
"These figures are quite amazing when you consider that
average life
expectancy in Zimbabwe is 34 for women and 37 for men, and in
light of the
fact that the World Health Organisation predicts that only
14,7% of people
live beyond 60 in Zimbabwe," the pressure group observed in
a report titled
"2013 Vision - Seeing Double and the Dead".
The
Sokwanele researchers said they were not able to determine whether
the very
large number of elderly people on the voters roll (over 17% of the
roll
comprises people aged 60 and over) are living or deceased.
The audit
also discovered a "large number of duplicate entries" on the
roll.
The report noted that despite denials by RG Tobaiwa Mudede that there
was no
way identity numbers could appear twice in the same roll, the audit
proved
that several ID numbers, names, addresses, birth dates and other
details
were duplicated.
"Specifically 182 564 instances of duplicate entries
were identified
where people were registered in two or more constituencies
simultaneously,"
the report said.
Bernard
Mpofu
http://www.theindependent.co.zw
Thursday, 05 November 2009
19:11
AT least five in every 10 Ordinary Level pupils might fail to
pursue
careers of their choices after failing to register a minimum of five
subjects in the forthcoming November examinations despite government
extending the deadline to pay examination fees. Official statistics this
week showed that close to 100 000 students may not sit for the Zimbabwe
Schools Examinations Council (Zimsec) 'O' Level examinations due to lack of
funds.
The examinations body is charging US$10 and US$20 per
subject for 'O'
and 'A' levels.
The growing number would limit the
students' chances of securing
formal employment or furthering their studies,
which requires the mandatory
five 'O' Level subjects.
Lazarus
Dokora, Deputy Education minister, on Wednesday told
parliament during
question time that the "modest registration" of candidates
was below
government expectations following the provision of state loans to
finance
poor families.
Government, according to Dokora, extended payment of the
examination
fees to next January.
"Some 132 538 candidates had
registered for a total of 642 004
subjects. The candidature represented 55%
of the entry for 2008 which had
239 434 candidates registered for 1 382 371
subjects. The average number of
subjects per candidate then was six compared
to the current 4,8 subjects.
Thus, a number of candidates failed to register
for the basic minimum of
five subjects", Dokora said.
He however
said the figures would rise as "more entries are received
from outlining
areas of the country which depend on the postal services for
delivery of
their registration forms to Zimsec".
Government, partnering with the
United Nations Childrens' Fund,
assists several school children from the
country's "18 focal districts" with
learning material and school
fees.
"In 2008, some 36 917 candidates registered for 114 829 subjects
in
the 'A' level examinations. So far, this year, some 25 000 candidates had
registered for 72 891 subjects by Friday 30 October," Dokora said. "This
represents 68% of the 2008 candidature. The average of subjects per
candidate stood at 3,1% in 2008 compared to that of 2,9 this year. This
indicates failure by some candidates to register for the expected three
basic minimum subjects at this level." - Staff Writer.
http://www.theindependent.co.zw
Thursday, 05 November 2009
19:09
THREE people believed to be Zimbabweans were arrested in a swoop
in
Leeds, UK, on Wednesday by detectives to smash a suspected £1 million car
fraud and money-laundering scam. Large quantities of cash from selling of
"clocked" high-mileage up-market cars were believed to have been spirited
away to Zimbabwe.
The suspected Zimbabweans were arrested on
allegations of fraud and
money laundering in a joint operation by City and
Holbeck police and Trading
Standards.
The fraud involved buying
high-mileage up-market cars at auction and
turning back the mileometers
before reselling them at inflated prices. It is
thought some of the vehicles
have been sold through trade publications and
car dealers.
Officers
raided five domestic and commercial premises across Leeds on
Wednesday
morning as part of the investigation. They swooped simultaneously
looking
for named suspects, cars with incorrect mileometer readings and
items
believed to be connected with fraud and other offences.
At an address
on Old Lane, Beeston, a 31-year-old man and a
33-year-old woman were
arrested.
In front of the house was a blue 2007-registered Audi S4
estate and a
black VW 4x4 estate. In the driveway was a black Jaguar XK
4,2litre and
parked on the road outside was a silver Audi A8
estate.
In another swoop on a terrace house in Kirkstall Mount,
Kirkstall, a
32-year-old man was also detained. During the raid on car sales
premises in
Wortley, police forced their way into the office.
On
display in the open compound were numerous Mercedes, BMWs including
a
convertible, a Range Rover and other up-market models.
Police
photographed the cars and took details for checks on their
history.
A large amount of vehicle documentation was seized along with a
quantity of
cash. Also recovered was paperwork relating to bank accounts.
Other
addresses in Armley Road, Armley, and Roseville Road, Sheepscar,
were also
raided.
The investigation was partly sparked by the introduction of a
new
police policy in Holbeck and City Division where people arrested in
connection with "acquisitive crime" are subjected to further checks. If they
get positive results investigations under the Proceeds of Crime Act are
triggered. - www.whyshouldthey.com,
http://www.theindependent.co.zw
Thursday, 05 November 2009
19:08
ZANU PF is struggling to raise US$5 million needed to finance its
congress in December, the Zimbabwe Independent has learnt. Highly placed
sources in Zanu PF said the party was in financial limbo and may fail to
raise even half of the required amount.
"Unless there is a windfall
from somewhere, we might see a different
congress than we used to see over
the years," said the source. "The party is
failing to raise the money, and
there are no mechanisms at the moment that
can generate the money for the
congress."
The source said this has forced the party's congress
organising
committees to coerce some civil servants and villagers to donate
money and
foodstuffs.
"Villagers and civil servants have always
been their easy targets.
That's why they are demanding money and maize from
them," one of the sources
said. "That's the only way they can raise the
money, but they might raise
less than half of the US$5 million
needed."
However, Zanu PF secretary for finance David Karimanzira on
Wednesday
denied that the party was compelling civil servants and villagers
to donate
towards the holding of the congress.
He claimed that
preparations for the elective congress were going on
smoothly.
"Do
you read newspapers young man, the party national chairman (John
Nkomo) said
the preparations are on course," said Karimanzira. "I want to
reiterate what
the chairman has said, the preparations are on course."
Nkomo was this
week quoted in the government-controlled media saying
that "everything is
going according to plan".
Asked how the party is mobilising funds in
respect of increasing
reports that some party officials were demanding money
from teachers and
villagers to finance the congress, Karimanzira said:
"There is nothing like
that. We have our own systems to get money. If it's
true that there are
people who are going around demanding money or any other
goods purportedly
for the congress, then it might be some rogue elements in
the society who
are stealing from the teachers and villagers using our
name."
Karimanzira declined to disclose how much the party had so far
raised
saying it was a confidential issue.
With more than 10 000
delegates expected at the congress to be held in
the capital, Zanu PF has
been battling to source enough money and food for
the event.
The
party is known for its extravagant partying at congresses with
more than 120
cattle, goats, pigs, kudus, chickens and tonnes of rice
sourced to feed
delegates at last year's conference in Bindura.
There have been
increasing reports in Mashonaland West province and
areas such as Bikita,
Gutu, Zaka, Mwenezi, Zvishavane and Mberengwa of
teachers and villagers
being coerced to "donate" towards the hosting of the
congress.
Reports say teachers were being asked to pay US$1 each while villagers
were
being forced to donate a bucket of maize per homestead.
The country's
two leading teacher organisations - the Zimbabwe
Teachers Association
(Zimta) and the Progressive Teachers Union of Zimbabwe
(PTUZ) - have
condemned the move.
Tendai Chikowore, Zimta president said her
organisation was worried
about the harassment that association's members
were being subjected to by
Zanu PF.
"I was recently in Chegutu,
Mashonaland West, and many teachers there
told me that they are being forced
to pay US$1 towards the congress,"
Chikowore said. "As an organisation which
represents teachers, we condemn
such behaviour by Zanu PF. If it's a
donation it should be voluntary, no one
should be forced to pay that money.
We will fight it because it is out of
our line of our work."
PTUZ's
secretary-general Raymond Majongwe said his union was still
investigating
the reports and would only act after gathering all the
information.
"We are still doing our investigations, we want to go beyond the
reports,"
Majongwe said. "This can be a criminal clique, a group of youths
who are
looking for money to buy beer and using Zanu PF's name because they
are
known to be fearsome. There are people out there who want to benefit
where
it is completely unnecessary."
Henry Mhara
http://www.theindependent.co.zw
Thursday, 05 November 2009
19:05
THE parliamentary committee on public accounts has recommended to
government to expeditiously reform the functions and operations of the
Comptroller and Auditor-General's office for it to become more effective in
fighting corruption. Tapiwa Mashakada, committee chairperson, on Tuesday
presented to parliament the first report on the state of the office, and
recommended the strengthening of its independence and autonomy.
The
office is a public body established under the Constitution of
Zimbabwe to
carry out investigations and audits of public accounts.
"The committee
came to the conclusion that although the constitution
of Zimbabwe provides
for the independence of the Comptroller and
Auditor-General's office, there
is still more that needed to be done for the
audit office to be able to
realise such independence and supremacy in
reality," reads the report. "The
existing regulatory framework needs to be
revisited as a matter of urgency
to include provisions that guarantee
freedom of the audit office in matters
of budget, employment and
remuneration. There is also need to urgently
address the accounting skill
requirements in the Ministry of Finance as well
as line ministries to ensure
prudent financial management and control as
well as to enhance transparency
and accountability in the use of public
funds and state property."
Under the existing laws, the constitutional
body does not form part of
the public service despite the appointment of the
Comptroller and
Auditor-General by the president in consultation with the
Public Service
Commission.
The constitution and the Audit and
Exchequer Act, which outlines
functions of the office, according to the
committee, do not give the
auditor-general any "sanction powers to compel
ministries and departments to
observe and comply with treasury instructions
and other regulations
regarding submissions of returns".
The report
came a few weeks after Auditor-General Mildred Chiri
released the first
quarter audit exposing corruption in public offices.
The alleged cases
of gross abuse of state resources have however not
been investigated to
date.
The parliamentary committee criticised the failure by government
to
prosecute cases of malpractices often raised by the audit
office.
This, the report stated, impacted "negatively" on the ability
of the
audit office in producing annual reports as well as meeting statutory
deadlines.
The audit office failed to produce annual reports
between 2000 and
2005 after blaming government ministries for keeping a
tight lid on public
records.
Changes to the audit office were
likely to see the office preventing
haemorrhaging of state assets through
graft.
"The committee feels that if the audit reports are to have
desired
impact, the enabling legislation should place an obligation upon the
treasury and accounting officers whose accounts have been qualified to
respond with a remedial action to the Comptroller and Auditor-General's
annual report," the report read.
Meanwhile the Ministry of Finance
intends to repeal the Audit and
Exchequer Act and replace it with two Bills
- the Audit Office, and Public
Finance Management, which the committee said
would address "some of the
challenges" faced by the audit
office.
Bernard Mpofu
http://www.theindependent.co.zw
Thursday, 05 November 2009
19:03
WHAT will a farmer do to have a successful crop, especially at a
time
when loans are hard to access? Farmers, both established and new, are
faced
with a challenge to raise funds to finance their crop after the
Reserve
Bank, which had become a perennial financer of agriculture, ceased
quasi-fiscal operations to focus on its core business.
The central
bank's withdrawal created a huge void that could have been
filled by
financial institutions had it not been for the liquidity crunch,
which has
seen banks failing to raise the requisite funds to support
agriculture.
In other cases there is government support for
agriculture, though
this is limited given the global moves against
protectionist tendencies as
fiscal support for the sector is seen as giving
farmers unfair advantages.
This cropping season is coming at a time
when farmers who had been
receiving huge support would have to source own
resources.
Apart from sourcing own resources, farmers should plan and
critically
analyse the pricing trends so that they make a profit from their
farming
ventures.
For Thomas Nherera, past president of the
Zimbabwe Commercial Farmers'
Union and also an ex-trustee of the Tobacco
Growers' Trust, farming is all
about planning.
"Farmers should plan
realistically and in time if they are to get good
returns on investment.
There is no need why one would have 100 hectares
under a crop when they do
not have the capacity," said Nherera. "It is
better to plan for 10 hectares
and be successful."
This is the advice that comes from a farmer who has
880 hectares he
has been farming in Shamva since 1986.
Nherera said
preparations for the 2009-10 farming seasons were
slightly better than last
year in terms of availability of inputs, but it
would be improper to expect
banks to finance the entire crop.
These banks, he said, were coming
from a situation where they have not
been generating anything and at one
time they "were worse than the man or
woman in the streets".
With
proper planning, farmers would be able to finance their
activities be it
livestock or crops using their own resources.
There are farmers like
Nherera who are into mixed farming and they
make sure that one crop finances
another, eliminating the need for taking up
a loan.
This may be
possible at mature farms where farming activities have
been taking place for
a long time to an extent that there is institutional
memory and planning is
more of recall from this repository.
There are cases where a farmer may
grow maize and soya beans to be
used as stock feeds and the proceeds from
the sale of, say, pigs, would be
used to finance the next crop.
This has been made much more realistic with the use of multiple
currencies.
"One has to look at the annual cash flows before they
make a decision
on the enterprise mix, that is having both livestock and
crops," said
Nherera. "Crops are generally seasonal and they are affected by
many
operational factors such as input prices, commodity prices or
availability
of labour and they are also more sensitive to power shortages
than is the
case with livestock."
On the other hand livestock give
a steady inflow of cash throughout
the year and this keeps the business
going as it takes care of all recurrent
expenditure.
If a farmer
has cattle, then they would use these when they want to
raise cash for other
activities.
It takes a lot of planning and time for a farmer to have
the right
enterprise mix, thus they have to be very patient before they come
up with
the right combination of crops and schedules of cropping.
"Farming is not a short term investment option as you make more
tangible
assets than liquidity," said Nherera. "It is an investment area
where you
should be prepared to bury your investment underground so that it
grows.
Generally, it is an investment option where faith plays a greater
part than
the usual business mathematics."
Unlike with other investment options
where one can make projections as
to the returns for each dollar that is
ploughed in, a farmers' return on
investment is dependent on a number of
factors.
Climatic factors may also wreak havoc on the investment that
is made
and at the same time policy changes may result in the farmer
incurring huge
losses. In agriculture, a policy pronouncement today may have
an impact on a
crop that was planted nine months ago, thus there is huge
risk if there are
inconsistencies.
Nherera said the enterprise
growth patterns in agriculture depended on
the crop or the
livestock.
It takes three years before real returns start showing for a
pig
venture while for tobacco it takes up to five years before the farmer
starts
realising real returns.
Horticulture takes far less, at most
two years, though the margins are
also lower compared to other
ventures.
While it may be easy to finance a crop or livestock for
Nherera, who
has been on the farm for 23 years, there are many new farmers
who are
struggling to get going.
Many have been shocked by the
withdrawal of the central bank and
without a comprehensive financing plan in
place for the 2009-10 season, they
would be forced to either quit farming or
put very small pieces of land
under crops.
This has a bearing on
the economy which is agro-based.
A poor agriculture season may see the
country importing food and
exporting less which will have a serious effect
on the country's currency
reserves which are currently low with less than
three months import cover.
What is certain is that there is a gulf of
difference between
investing in a farming venture and buying stocks in
anticipation of a bull
run because one promises quick returns while the
other requires patience
with the investment at the mercy of the vagaries of
the weather.
Apart from the effects of the unpredictable weather
patterns, faming
entails planning well in advance, commitment and massive
support from
central government as well as financial
institutions.
Leonard Makombe
http://www.theindependent.co.zw
Thursday,
05 November 2009 18:37
THE collapse of the inclusive government will
deprive President Robert
Mugabe of political legitimacy, derail the MDC's
quest for political, social
and economic development and at the same time
worsen the living standards of
the populace, political analysts have warned.
The analysts say the partial
withdrawal from the unity government by the
Morgan Tsvangirai-led MDC three
weeks ago would also erode gains made in
turning around the economy and
political reforms underway since the
formation of the new administration in
February.
Tsvangirai, Mugabe
and the leader of the smaller formation of the MDC,
Arthur Mutambara, the
analysts said, were aware that the failure of the
inclusive government would
not be of benefit to any of them and that
internal dialogue is the answer to
the current dispute.
The MDC-T disengaged from cabinet and the council
of ministers to
protest against Mugabe and Zanu PF's failure to fully
consummate the
September 2008 global political agreement (GPA) that gave
birth to the unity
government and the helter-skelter pace of democratic
reforms.
Tsvangirai's action was also to protest against the indictment
to the
High Court of party treasurer-general Roy Bennett, the reappointment
of
central bank boss Gideon Gono, the hiring of Attorney-General Johannes
Tomana, the delay in the appointment of provincial governors, the continued
harassment and politically motivated prosecution of MDC lawmakers and
activists.
The MDC-T has not attended three cabinet meetings since
the
disengagement.
Soon after announcing the disengagement,
Tsvangirai went on a
week-long diplomatic offensive in southern Africa
drumming up support to
compel Mugabe to honour outstanding issues of the GPA
as outlined in the
Sadc communiqué of January 27.
The premier met
Mozambican President Armando Guebuza, South Africa
President Jacob Zuma, DRC
president and also Sadc chairperson Joseph Kabila
and Angolan leader José
Eduardo dos Santos.
The regional offensive culminated in the Sadc organ
on politics,
defence and security dispatching a ministerial team last week
to review the
GPA in line with the January 27 Sadc communiqué and to deal
with the current
impasse. A full Sadc troika meeting on the deadlock was
held in Maputo,
Mozambique, yesterday.
Sadc, analysts observed,
would not do anything to compel Mugabe to
honour the GPA and deal with the
outstanding issues. The analysts said while
the MDC-T's complaints against
Zanu PF were genuine, Mugabe would not give
in to the party's demands until
the ageing leader's party congress in
December.
The analysts said
Mugabe was aware that without the MDC in government
he would lose political
legitimacy and will not be able to move the nation
forward, but was under
pressure from Zanu PF not to give more concessions.
Zanu PF's politburo
in September declared that it had fulfilled the
demands of the GPA and
challenged the MDC-T to honour its part of the
bargain. The party said the
MDC-T had not done enough to persuade the United
States, Britain and the
West to lift sanctions and stop foreign radio
broadcasts into the
country.
"Mugabe is somehow contemptuous of Sadc leaders, that he has
made
clear through his actions, but at the same time he can not spit in
their
face because they did help him secure legitimacy through the coalition
government at a time of increased pressure for his ouster from the West,"
said University of Zimbabwe political science professor Eldred Masunungure.
"So Sadc is likely to wring some concessions from the old man, reminding him
that a stable Zimbabwe is better for the region but he is unlikely to give
in to all MDC demands because you don't want to go to congress appearing
weak and giving in to your rivals."
Mugabe has since been accused
in Zanu PF circles of being a sell-out
when he inked the GPA with Tsvangirai
and Mutambara. Hardliners in his party
and government are reportedly working
overnight to torpedo the inclusive
government.
Another political
scientist, Michael Mhike, said despite the current
impasse, Mugabe and
Tsvangirai were aware that the inclusive government is
the only solution to
the country's teething political and economic problems.
"Without the
MDC, Mugabe has no political legitimacy," Mhike said. "On
the other hand,
the MDC cannot champion democratic reforms outside the
inclusive government.
If you noticed, all attempts by Zanu PF to make
political gains after the
MDC disengagement have failed and that is why
Mugabe is insisting that talks
are going on to save the unity government."
He said in the event of the
collapse of the government, no fresh
elections would immediately take place
because constitutionally the next
polls are scheduled for 2013.
"The collapse of the inclusive government would be disastrous for the
nation. All gains made in the last nine months will be eroded," Mhike
postulated. "Mugabe will remain in charge of the country while the two MDC
formations would go back to the trenches. Negotiations to save the situation
should continue until an agreement is reached between the
principals."
Kabila, who was in the country this week for a state
visit, was also
of the opinion that there was no substitute to dialogue in
resolving
internal differences.
Drawing parallels to what happened
in his country, Kabila said:
"Political dialogue, entailing compromise and
give and take, had to be
brought to bear in order to defuse
misunderstandings, build confidence, mend
the social fabric and induce
reconciliation. Indeed, accepting to share
power with adversaries, or
granting amnesty to rebels is seldom an easy
decision.
"It can be
politically painful and even dangerous. It takes vision,
wisdom, and, above
all, courage. Looking back, we do not regret having
ridden that, at times
bumpy road. It led us to where we stand today: strong
and tall, as it was
meant to be."
Reports have emerged that besides Sadc nudging Mugabe and
Tsvangirai
to end the current deadlock, the two principals are engaged in
parallel
internal negotiations since last Monday when the protagonists met
and failed
to agree on the way forward.
The parallel negotiations
are spearheaded by prominent businesspeople
and politicians. This explains
Mugabe's weekend statement that Zanu-PF and
the MDC-T were engaging each
other to find a lasting solution to outstanding
issues of the GPA and the
smooth sailing of the unity government.
"We are glad that we are
talking," Mugabe said at the burial of
national hero Misheck Chando in the
capital on Saturday. "We cannot report
it anywhere. The UN says it's your
issue and this is our issue. We settle it
here, it's not for
others."
Internal settling of the impasse also curried favour with the
Sadc
ministerial team that was in the country last week.
"In our
observations we made it clear that the problems have to be
solved first and
foremost by Zimbabweans themselves. We do support the
inclusive government
but we have to show that support by making sure that it
is inclusive in all
instances," said head of the ministerial team Oldemiro
Baloi, who is
Mozambique's Foreign Affairs and Cooperation minister. "The
parties should
intensify their dialogue to come out of the situation and
speed up the
implementation of the GPA. We urge all parties to normalise the
situation as
soon as possible. This is a highly undesirable situation and it
should not
be allowed to stay for long."
Constantine Chimakure
http://www.theindependent.co.zw
Thursday, 05 November 2009
18:21
THE Reserve Bank of Zimbabwe (RBZ) last week started buying bonds
it
had issued to gold miners in February this year after it failed to pay
for
deliveries made by miners. This is a surprise move especially at a time
when
the RBZ governor, Gideon Gono, had confirmed that the central bank had
not
been receiving fiscal support since the beginning of the year.
One company, New Dawn Mining, confirmed selling bonds equivalent to
US$2,2
million in lieu of gold produced and delivered to the Reserve Bank
prior to
the liberalisation of the gold marketing arrangements in Zimbabwe
in early
2009.
Gold miners can now sell their produce to buyers other than
Fidelity
Printers which was the sole buyer of the metal prior to the
liberalisation
of the marketing of the yellow metal.
While New Dawn
Mining confirmed that they had disposed of their bonds,
the Zimbabwe Chamber
of Mines said they were not aware that members had
started selling their
bonds.
"We are not aware of that (the selling of bonds) and as far as
we are
concerned it could be for individual members of the chamber who have
started
selling their bonds," said Christopher Hokonya, the chief executive
officer
at the chamber of mines.
Many gold miners were faced with
collapse when they failed to get
payment for the gold they had delivered to
Fidelity Printers as the central
bank had used the money raised from the
proceeds for other purposes.
RBZ has, since last year failed to pay for
the deliveries made to
Fidelity Printers and many gold producers have
continued to highlight how
this has affected efforts to resume full
production.
At one time, the central bank chief suggested that part of
the US$510
million which was extended to Zimbabwe by the International
Monetary Fund be
used to pay for the outstanding amounts that RBZ owed gold
producers.
This was shot down as Finance Minister Tendai Biti, who said
the money
would only be used through a fiscal instrument such as a budget
and he never
mentioned the payment of outstanding monies for gold
deliveries.
Selling off bonds held in lieu of gold produced would
significantly
improve the cash resources for miners who are struggling to
raise financial
resources to expand operations.
Many gold
producers, like any other industry in the country, have
failed to get
requisite loans both locally and offshore.
Locally it has been
difficult to get loans as the market is in a
serious liquidity
crisis.
New Dawn, for example, said the US$2,238 they received from RBZ
had
increased their cash resources by approximately 90%.
This
amount would allow New Dawn to evaluate opportunities to
accelerate
development at its producing Turk gold mine, as well as to
consider other
development opportunities in Zimbabwe.
Leonard
Makombe
http://www.theindependent.co.zw
Thursday, 05 November 2009
18:19
DESPITE the serious shakiness of the inclusive government,
apparent
from the onset, investors had begun showing renewed interest in the
country
since its formation. The main attraction has been the hope for an
economic
revival emanating from some good polices put in place by the
government. A
recent IMF report hailed the local fiscal authorities' strict
adherence to
cash budgeting as one of the reasons inflation has been
declining. Some risk
takers realise that it is possible to invest in the
country and get a high
risk adjusted return even if political squabbles
persist just so long as the
infighting does not lead to the collapse of the
inclusive government.
The current impasse following the disengagement
of MDC-T from
government has heightened fears that a collapse could result.
This has
stoked speculation that the Zimbabwe dollar could then be
re-introduced. The
emergence of this rumour at a time when the economy has
not only stabilised
but also turned around is unsettling to business and
people alike. It has
been further exacerbated by the fact that despite the
story being widespread
no one in government has come out to dispel it
completely in order to calm
the situation.
For more than seven
months now people have enjoyed the benefit of
transacting using stable
currencies. Prices of some commodities have fallen
with monthly inflation
averaging -1, 01% for the year to date. In 2008,
prices at their peak were
rising by a minimum of 100% everyday. Whereas the
current average wage in
the economy of US$150 is too modest relative to
prices, the truth is that it
has brought much relief to many. There is
little doubt that many people
would rather have the current economic
policies, including multiple
currencies, than revert to the conditions which
prevailed in 2008.
Failure to quickly set the record straight could cause more panic in
the
markets. This could hamper the financial system which was beginning to
see
public confidence improving. Since the impasse began, foreign investors
have
withheld their money while others, particularly locals pulled out their
investments preferring to hold cash instead. From the peak market
capitalisation of US$4,35, 7 billion on October 22 the market has lost
US$630 million by November 4 because of panic selling.
The market
weakness could still continue if the bad news persists as
investors would at
best withhold new funding while at worst may start
disposing off their
investments. With markets elsewhere steadily improving,
the local bourse
could experience a flight of capital to foreign economies
which are more
stable.
Also worrisome is the likely negative impact the impasse and
the
prospect of the return of the Zim dollar could have on the banking
system.
Memories are still fresh of how some people and organisations lost
their
foreign currency from bank accounts after balances were summarily
converted
into Zim dollars without their consent.
This has prompted
some depositors to call in their deposits from
financial institutions. Given
the uncertainty many people prefer to keep
their wealth in cash. Others are
contemplating taking their money offshore
for security reasons. All this
could take banks 10 months back when they
laboured to pick up
deposits.
Without deposits banks cannot give credit to borrowers and
with no
funding, companies will not be able to produce anything. The
economic
revival which had become evident of late could quickly reverse
itself with
ghastly consequences.
The suspension of the Zimbabwe
dollar early this year was almost
unanimously hailed by everyone in the
country. Besides, many had ceased
using it even before then preferring
stable currencies and barter
arrangements. For a long time the fuel coupon
had become the most preferred
medium of exchange because it was easily
convertible into hard currency. In
its last days the Zimbabwe dollar had no
value of its own but was only
valuable if it could be changed quickly into
foreign currency.
Worse, it was not possible to print enough notes to
meet the demand
for cash because of ageing printing equipment. Cash was
being rationed
through the imposition of withdrawal limits.
Those
fortunate enough to have access to cash through the right
connections would
gain from using it to buy foreign exchange on the parallel
market. These
relatively few may welcome the re-instatement of the Zim
dollar so that they
could profit once more. For the rest of the people it
would be an unwanted
returnee.
Ranga Makwata
http://www.theindependent.co.zw
Thursday, 05 November 2009
18:17
AS the country awaits the 2010 national budget economic analysts
say
focus should be on providing incentives to boost local manufacturing
sector,
realignment of tax rates and further tightening of government
spending.
Minister of Finance Tendai Biti, as per tradition, is expected to
present
the budget during the last week of November but disengagement by MDC
-T from
government activities might cause some delays.
Consultations are currently low key.
Speaking to Businessdigest this
week, Eric Bloch, a Bulawayo-based
economic analyst said it was critical for
Biti to announce steps and
incentives that will facilitate
investments.
Bloch said realignment of tax rates should be considered
so that they
match those that are being charged in the region.
"The
tax rates that are being charged in the country are a major
deterrent to
investments and they have also led to a serious brain drain,"
Bloch said.
"The ministry (of Finance) needs to look into these so that the
rates are
similar to those in the region and also as a way of curbing brain
drain."
He also said businesses should not be forced to pay value
added tax by
the 15th day of every month when they only receive money from
their clients
at the end of the month.
He said government spending
should be further curbed.
Bloch said the government should introduce
incentives to motivate
savings in order to restore liquidity in the
financial sector.
Independent economic analyst John Robertson said "a
tough year lay
ahead of the country's economy with efforts of restoring
investor confidence
being critical".
An economic analyst said Biti
faces a Herculean task of crafting a
budget that would not be financed by
taxes and duties paid on beer and
cigarettes.
When presenting a
revised budget early this year Biti lamented the
fact that "indirect taxes
made up of customs and excise duty have
contributed 88% of government
revenue, which means that the government has
been literally sustained by
beer and cigarettes".
An analyst with Kingdom Bank said reviving the
manufacturing sector
was key to the recovery of the economy.
"We
expect the minister to look into the issue of the window period of
the duty
free importation of goods," the Kingdom analyst told
businessdigest.
"The window closes on December 31 and we are hoping
the minister will
ban the importation of all basic goods. The manufacturing
industry is losing
business but local retailers are cashing in on cheap
imported products which
our industries can easily produce," he
said.
"If the government has no immediate use of the money made
available by
the IMF, they should give the money to banks that will be
better placed to
make use of the loan," said the Kingdom Bank
analyst.
Jesilyn Dendere
http://www.theindependent.co.zw
Thursday, 05 November 2009
18:15
MWANA Africa has secured US$10 million funding for Freda Rebecca
Mine
from the Industrial Development Corporation of South Africa. This loan
facility is expected to enable Mwana to accelerate the implementation of the
mine's refurbishment programme which is expected to spur the gold mining
company's output to more than 50 000 ounces of gold per year.
This
makes Mwana Africa one of the few companies to get loans for
expansion of
operations in the country.
"We are delighted that the IDC is supporting
our project, and we are
hopeful that this will be a catalyst for further
investment into the
country," said Mwana Africa chief executive officer
Kalaa Mpinga. "The IDC's
involvement in the project will allow us to
accelerate the implementation of
the second phase of our refurbishment
programme, which is planned to
increase production from the mine to
approximately 50 000 ounces of gold per
year."
Freda Rebecca
resumed operations last month and it is anticipated that
the mine's second
phase of its expansion would be supported by an offshore
loan after the
parent company partly met the financial requirements of the
first phase of
refurbishment.
Funding will be made available in two tranches with the
first one of
up to US$4 million being applied to fund the remaining working
capital
requirements of phase I.
The remainder of the funding will
be applied to the capital
expenditure and working capital requirements of
Phase II.
The loan is repayable in 10 equal instalments over a five
year period
and attracts interest at US$LIBOR plus 5%. LIBOR is interest
rate at which
banks can borrow funds, in marketable size, from other banks
in the London
interbank market. The LIBOR is the world's most widely used
benchmark for
short-term interest rates
This is an almost done deal
with the remaining item being the loan
documentation and fulfilment of
certain customary conditions including the
provision by the Export Credit
Insurance Corporation of South Africa of
political risk insurance.
It is also dependent on the provision of a detailed environmental
management
plan for the mining operations.
Leonard Makombe
http://www.theindependent.co.zw
Thursday, 05 November
2009 18:13
IN the classic film, The Godfather, Vito Corleone refuses to
be cowed
into paying a protection fee by the local Mafia Don. Vito whacks -
a mob
euphemism for murder - the local crime figure and builds the Corleone
family. The association of "protection levies" with the mob is as old as Eve
in the crime world.
On the market, investor protection fees are
paid in the event of a
financial mishap. But the Securities Commission of
Zimbabwe is taking it a
bit literally.
This is because the
commission has been approaching stockbrokers and
demanding "investor
protection fees".
Never mind, the fact that brokers already have an
investor protection
fund administered by the Zimbabwe Stock Exchange
(ZSE).
ZSE chief Emmanuel Munyukwi is very quiet as the commission
reigns.
So far, according to sources, the commission has collected US$2
million from some brokers.
By the time ZSE finally got wind of the
"protection fee" being paid
out by brokers to the commission, millions were
already sitting in a bank
account.
The commission's deputy
chairperson Arthur Charamba confirmed
collecting levies from brokers but
said his CEO would be in a position to
comment further. "The matter has been
referred to the CEO. I am not at
liberty to comment on the legality of the
matter," he said.
A ZSE note to brokers dated October 20 reads: "We
advise that the
committee of the Zimbabwe Stock Exchange disputes the
legitimacy of the
investor protection levy which was gazetted among other
issues under
statutory Instrument 206 of 2009. There is no provision in the
Securities
Act providing for any Investor Protection levy to be paid by
anyone.
"In fact under section 65 paragraph (V) of the Securities Act,
the
rules of the Zimbabwe Stock Exchange shall provide for "security to be
provided by members for the discharge of any liabilities that may arise out
of their dealings on the exchange".
Furthermore, the ZSE says
"under section 121 paragraph (4) of the
Securities Act the Zimbabwe Stock
Exchange Security Fund is to continue in
existence as body corporate which
raises its own charges and levies."
The ZSE went on to advise brokers
that the directive was confirmed at
a meeting held at the Ministry of
Finance by the former acting Registrar of
the Stock Exchange.
The
ZSE added: "It is therefore not within the jurisdiction of the
Commission to
impose levy. The committee of the Zimbabwe Stock exchange has
directed that
all members continue to collect levy but not remit to the SEC
until the
matter has been resolved."
According to sources, the commission did not
take it very well and
decided to pay the exchange a "visit" and inspect the
books of the ZSE Fund.
They brought in an SEC official Tirivavi Nhundu to
inspect the books as
provided for by the law. As it turned out again, SEC
misunderstood the law
on that front as well.
Only a person
"registered as a public auditor" could inspect the books
according to
Securities Act Section 51(2).
The story gets better.
The
would-have-been inspector -Nhundu was sacked years back from his
job at the
exchange for some reason.
Even better.
SEC chief Albert
Chirume ran a broking firm - Momentum in the 90's.
The firm's stockbroker
left him and he could not get a licence to trade on
the market. Despite
efforts to engage the ZSE to get a licence, the ZSE is
said to have turned a
deaf ear to his pleas on the basis that he was not
experienced.
Momentum collapsed thereafter.
Another commissioner Martha Rukuni had a
dream some time back of being
a stockbroker. The ZSE said no to her and now
she is a commissioner in
charge of controlling the stock exchange.
Could there be a conspiracy theory? Maybe not. Just a series of
coincidences.
ZSE has been warned that "if it is found upon
inspection referred to
in subsection (3) that licensed person has not
complied with section fifty
or any relevant rules, the commission shall be
entitled to recover the cost
of the inspection from that person".
KPMG has been appointed by SEC as the auditors. Should there be
anomalies
Munyukwi and company will be fed to the sharks alive.
Chris
Muronzi
http://www.theindependent.co.zw
Thursday, 05
November 2009 19:00
WHETHER the Maputo talks bring some progress on the
GPA issues or not,
29/11 will be a date worth remembering. Coming soon,
Sunday, November 29
will mark the end of a lost decade.
Ten
wasted years. Ten years since the day when the President's
Constitutional
Commission of 1999 gave him its report (which was never
published) called
What the People Said, and their Draft Constitution
ignoring obvious key
elements of that report. This in turn led to the No
vote in the 2000
Referendum.
What the People Said is incontrovertible proof that
an official team,
composed of 150 lawmakers and about 250 others may well
hear and record what
Zimbabwe's people want in their constitution - yet
still not listen to them.
Its 10th anniversary approaches as a
new team, picked by parliament
this time, finally prepares to start its
outreach programme, aiming to ask
Zimbabweans again what they want in their
supreme law.
The anniversary approaches while we are at risk of
suffering the same
mistake.
The 2008 GPA admits the right
to write the constitution vests in the
people yet gives MPs the final word
on a draft for a 2010 referendum. It
makes no promise that MPs will listen
to the people - and it strangely lacks
any promise by the parties and
principals in our legislature to later enact
any draft we may
approve.
Since it was signed we have instead had worrying
statements by a
co-chair in the parliamentary committee and other MPs,
suggesting our
lawmakers will enact into law only what they like
themselves.
So if we say again, as we did in 1999, that we only want 15
Cabinet
members, but they maybe want 65, some have already told us they will
do as
they please.
There's little point in speaking again
if we don't have enough
legislators ready to listen.
Then
there is the "small" problem too that someone chopped out all
reference to
the MPs' process for writing a new draft constitution and to
the 2010
referendum from a Bill for the 19th Amendment, which all parties
and Sadc
had agreed on and MPs had passed, before the Bill got its
presidential
assent - without asking MPs to approve such changes first.
That
has left Zimbabwe's president still able to decide under
statutory powers if
any second constitutional referendum will be held at
all, and if so, when,
and what question he will put to the people.
Given his public
statements, the incumbent's chosen question for us in
2010 may well be "Will
you swallow the Kariba Draft?" His signature on the
whole agreed Bill is a
GPA requirement, which MDC wanted Sadc to insist on
in Maputo. While this
is being withheld, there are problems with government
legality and
legitimacy - and the whole process to get a new constitution
depends on the
will of just one man.
Can we justify spending any time and
money on a fresh round of
consultations if the people's wisdom is likely to
be ignored again? Can we
at least be given first some undertaking by all
involved that this time they
will heed us?
Reminded that
what the people said was ignored before, our present
lawmakers and their
team may opt to reassure the public. As they begin their
outreach they may
quickly and usefully volunteer to make a public pledge to
listen.
If they do not volunteer, shouldn't taxpayers and
others funding this
outreach ask for that public promise first - perhaps
taking 29/11 as a
deadline to judge the ultimate intentions of the new team,
and all the GPA
principals?
Maybe calling 29/11 now our
"listen - lalela- terera" day?
If those now entrusted with
writing the constitution will not even
promise us that all of them, or
two-thirds of MPs at least, will listen this
time to what we say, what can
we expect from them next year?
Is it worth talking to lawmakers who
admit no duty to abide by our
wishes, or to a team if it is reluctant to
accept that their responsibility
is to at least listen?
We
can only guess how different our history might have been had our
last group
of constitution-writers heeded more carefully what they reported
citizens
wanted in What the People Said.
Our current constitution is
many years past its sell-by date. If we
consider what the lost decade has
cost in human and economic terms, we
clearly cannot afford to lose another
decade before we get the institutional
reforms requested in 1999 and
probably still wanted now by most Zimbabweans.
We have to take
note of the lessons of 29/11/1999, and do everything
possible now to ensure
we do not give a new group licence to ignore our
views on the constitution
again.
Is there benefit in asking for public pledges to listen
- lalela -
terera by 29/11?
Yes. Pledges on paper are
harder for leaders and others to break
later.
And any
refusal to give them puts us, and neighbours, on our guard
again.
Surely it's time for all of us to be as pro-active
as possible rather
than re-active in trying to deal with our ongoing
"challenges" here?
Sheila Jarvis is a Harare-based legal
practitioner.
By Sheila Jarvis
http://www.theindependent.co.zw
Thursday, 05
November 2009 18:43
One of the most important rules of photojournalism
is to get your shot
from the front and as close up as possible to the
subject. The Sunday Mail
provided a classic example of how not to do it by
publishing a picture last
weekend of three people on a golf course taken
several metres back.
It was impossible to tell who they were or
indeed that they were
golfers.
The point of the picture was to work
up nationalist indignation that
Morgan Tsvangirai could be playing golf
while "thousands of Zimbabweans were
at the National Heroes Acre laying to
rest veteran nationalist Senator
Mishek Chando".
Leaving aside for
a minute the obvious point that the public no longer
buy Zanu PF's brand of
stale nationalist fervour, would any party leader
want to attend an event
where the president castigates him and his
followers?
Zanu PF has
transformed national functions into party-political
rallies, witness the
posters held aloft at last Saturday's event. It would
in the circumstances
have been difficult to justify Tsvangirai's attendance.
This was not a
national event, whatever its claims to be one. And if
attendance was so
important, where was Grace Mugabe? Muckraker understands
that she was in
Hong Kong.
Munyaradzi Huni's accompanying piece contained all the lies
and
threats we have come to expect from a suborned "public" media. It is
good to
know that the MDC has put this sort of rabble-rousing on its list of
outstanding issues. Zanu PF continues to bleat about sanctions. But what
have they done to change their ways? Why should anybody lift sanctions
against them when they are refusing to lift their sanctions against the
people of Zimbabwe? Abductions and beatings are once again being reported
across the country.
Charges of hypocrisy are being levelled
against the West for
recognising Hamid Karzai as Afghan ruler after his
opponent pulled out.
Is this really hypocrisy? The EU and US have
brought to international
attention the shortcomings in the electoral process
in Afghanistan, saying
they couldn't recognise the outcome of the first
round in the circumstances.
And they admit to the dilemma of an
unsatisfactory outcome in the run-off.
But while there was evidence of
fraud, there was no evidence of abductions
or lawyers being arrested.
Whatever its manifest shortcomings, Afghanistan
is a nation struggling to
adhere to democratic norms, not a rogue state that
metes out the sort of
treatment Jestina Mukoko had to endure. Nor does
Afghanistan have a media
that tries to justify fraud and violence, nor does
it turn away UN officials
investigating torture. Is this what Sikhanyiso
Ndlovu calls "sovereign
rights"?
Another "sovereign rights" exponent, Tafataona Mahoso,
writing in the
Sunday Mail last weekend said Prof Welshman Ncube and
corporate executives
"had long been aware of the claim (US ambassador
Christopher) Dell and the
Centre for Global Development (CGD in Washington)
made in 2005 that the
economic crisis precipitated by the regime-change
onslaught on Zimbabwe in
opposition to land redistribution brought the
living conditions of the
majority of the people back to 1953 levels within
the six year period from
2000 to 2005".
Dell of course said nothing
of the sort. He cited the CGD as saying
Mugabe's policies had plunged living
conditions back to the levels of 1953.
Not quite the same thing is it?
But that's the sort of manipulation we
have to put up with when the "public"
media remains in the arthritic hands
of Zanu PF's publicists.
Let's
remind ourselves that the party that lost the elections last
year continues
to maintain its stranglehold on the public media so it can
"explain" to the
people how they were the victims of an Anglo-American
conspiracy. It won't
even allow the winning party the right of reply.
Losers such as
Mahoso, not content with misleading Sunday Mail readers
as to what a former
US ambassador actually said, has been making scarcely
veiled attacks on our
forthcoming publication, NewsDay.
He was asked on the partisan Media
Watch programme whether it was
legal for other newspapers to carry inserts
of NewsDay before it was
registered.
This is what Mahoso had to
say: "Well, I wouldn't want to speculate.
What I can recommend to viewers is
that they should go back to the year 2002
this time.October (or) November
2002 and read what the Daily News was saying
about media law and how to go
around defeating media laws, violating media
laws. I believe we are in a
similar climate right now and some people are
going to get hurt if they play
around with media laws."
The publishers of NewsDay have been scrupulous
- some would say too
scrupulous - about bringing out their new daily. They
are observing the law
every step of the way. Yet here is Mahoso, with
evidently far fewer
scruples, threatening them.
People are "going
to get hurt" are they? It was useful to have those
remarks on the record
ahead of the Maputo summit.
By what authority does the malevolent
Mahoso speak on this matter?
What position does he hold in the media
hierarchy apart from his claims to
expertise at an interview that didn't go
too well a couple of months ago?
Perhaps Minister Webster Shamu can
explain. Is Mahoso Zanu PF's
spokesman on media reform?
And what
should we make of journalists inciting officials to take
action against
their colleagues? We thought editors agreed at the Unesco
round table that
such behaviour was unacceptable. And then they squeal about
sanctions!
How in the circumstances Mugabe could tell reporters
at Harare airport
on his way to Uganda recently that all outstanding issues
had been addressed
defies logic. At least the Sadc troika pointed out that
there were still
issues to be resolved, something Zanu PF is in denial
about. Slowly their
story about Joseph Kabila paying a "reciprocal visit" to
Mugabe had to be
re-spun as a GPA review visit as the original line began to
sink under the
weight of its own contradictions.
We expected the
Sadc troika visit to be accompanied by pleas to lift
sanctions and for
"pirate" radio stations to be closed. But as the MDC-T
pointed out in their
submission, all that was needed was for Zanu PF to
fulfil the GPA
requirement for external broadcasters to be readmitted and
registered.
Which part of "readmitted and registered" don't they
understand?
Then we had claims that during his tour of the region to
explain the
breakdown of the GNU, Tsvangirai had only been given a few
minutes here and
there by heads of state.
So who was feeding these
lies to the gullible state media? Somebody
who wasn't even there, we
gather.
We are pleased to note that this deceitful "source" has himself
been
tabled as an outstanding issue which is where he belongs.
Meanwhile, has anybody managed to point out to General Constantine
Chiwenga
that the B52 was an American bomber used in the Vietnam war, not a
"fighter
plane"? He made the remarks last Friday when paying tribute to
Senator
Chando.
We are surprised Air-Vice Marshall Henry Muchena didn't correct
him on
this point!
It was amusing to witness the wriggling that
went on last week over
the expulsion of UN official Manfred Nowak. Ministers
couldn't see him
because they were too busy with the Sadc troika mission, we
were told.
So Zimbabwean ministers can't do more than one thing a day?
And when
they next complain against Western attempts to damage the country's
reputation, will they consider this episode? Nowak was prevented from
entering the country even though Tsvangirai had said he would host the
visiting UN rapporteur on torture.
Nowak summed it up rather neatly
when he arrived back in Johannesburg.
"I think it sheds light on the
present power structure of the unity
government," he said, "if the prime
minister invites me for a personal
meeting and his office is not in a
position to clear my entrance to the
country."
Nowak said he had
never been treated so rudely by any government and
would recommend that the
UN Human Rights Council take action against
Zimbabwe.
Another own
goal. Well done lads! But where was the MDC in all this?
Shouldn't
Tsvangirai have been at the airport to be filmed trying to receive
Nowak?
And then slamming Nowak's detention as a gross infringement of the PM's
authority, and thereby the authority of the GNU as a whole? This was a
photo-opportunity begging to happen.
The MDC, it must be said,
never miss an opportunity to miss an
opportunity!
By the way,
has anybody noticed how the Sadc Pretoria communiqué of
January 27 requiring
the parties to resolve the Gono/Tomana dispute has
become a mere "press
statement" which doesn't have to be fulfilled beyond
Mugabe's statement that
the appointments are "irreversible"?
A letter to the Herald's editor
from a suspicious character styling
himself "Patriotic Observer", occupying
the spot usually reserved for
Munhumutapa concoctions, was on Monday
attacking "scandalous claims" in the
Standard regarding the GPA. He
attempted to lay down the new line that Zanu
PF cannot be expected to uphold
a mere "press statement" and that therefore
there will be no change in its
stance.
All very revealing! And thanks to Prof Arthur Mutambara for
this
unambiguous statement: "Zimbabweans do not deserve to continue to be
punished with biased media. The people deserve plurality and diversity. What
is happening is poisonous and uncalled for."
Just as bad is the
uniformity imposed on state-media journalists who
are obliged to refer to
sanctions as "illegal" and to Nowak's visit as
"gate-crashing" - not just
once or twice but every time they mention it.
What does that tell us
about political manipulation of a captive
press?
And please tell us
that rumours of fake interviews with Zanu PF
luminaries are not true.
Question and answer sessions are written by the
same person, we are told,
the interviewee, not the interviewer. Surely not!
Zanu PF has been
complaining about the cost of certain reforms such as
constitutional reform
and the land audit. But how much does it cost to
liberate the media? Reform
in this sector would take the form of investment
as new players come in.
Above all it would enable Zimbabweans to make an
informed choice on
constitutional and electoral matters which they are
currently
denied.
Meanwhile, what has happened to the Zimbabwe Media Commission,
nominations for which were submitted to the president weeks ago? Why is
there no movement there? The sound of foot-dragging is deafening.
Could Henry Muradzikwa please clarify matters for us?
http://www.theindependent.co.zw
Thursday, 05 November 2009
18:39
AFTER Zimbabwe belatedly attained Independence in 1980, the
country
enjoyed economic recovery and growth for four years. However,
thereafter
for almost 25 years it has been in almost continuous economic
morass, save
for a few distressingly brief intermissions when some
relatively minimum
economic upturns materialised.
The most
pronounced of these upturns were from 1994 - 1997 when, very
reluctantly,
and several years later than declared intent, government
implemented the
Economic Structural Adjustment Programme. Of the quarter of
a century of
almost constant economic decline, the most pronounced
deterioration
commenced in late 1997, and continued until the end of 2008.
Throughout the prolonged period of the decimation of the economy,
government
steadfastly denied any culpability, and endlessly sought to
attribute fault
to circumstances beyond its control.
More often than not, it
contended that the emaciation of the economy
was due to the intentional,
malevolent actions of others.
Over the years it vociferously
claimed that any and all of Zimbabwe's
economic ills were consequences of
actions of Britain, the US and various
Commonwealth countries, motivated by
a desire that Zimbabwe be recolonised.
It blamed those of Caucasian origin
in general, and commercial farmers,
industrialists and others in commerce,
political opponent, and others, with
the sole exception that from time to
time it also attributed the economic
ills to climatic conditions and other
acts of God.
From 2002 onwards it intensified its diatribes of
vitriolic
attributions of blame for the deteriorating economic conditions to
the
international community and in particular, inflation to the Bretton
Woods
institutions (IMF and World Bank), and to the British/American
political
leadership (especially Tony Blair and George Bush).
It sought to give credibility to its contentions by recurrent
reference to
allegedly "illegal" economic sanctions. This was with a
dogmatic flouting
of the facts that the reason for the international
financial institutions
ceasing to provide funding to Zimbabwe was that they
were constitutionally
barred from doing so, due to the magnitude of Zimbabwe's
default in
servicing its debts to them.
They also steadfastly and studiously
ignored the fact that until 2008,
none of the "sanctions" were of economic
nature, but were solely targeted at
specific individuals within Zimbabwe's
political and governmental hierarchy.
In addition, they
conveniently disregarded that there was nothing
illegal in the imposition of
sanctions, targeted at individuals or
otherwise, for any country has the
right to determine who may enter the
country, who may possess assets
therein, and whether or not to trade with
such countries as they deem
fit.
However, the Zimbabwean government was constantly
determined to defuse
any suggestion that it was the catalyst of Zimbabwe's
economic woes, and it
was convinced that the majority of Zimbabweans were
sufficiently gullible as
to be misled by government's contentions of
Machiavellian actions by
Zimbabwe's supposed enemies.
The
reality was, and still is, that the Zanu PF government that
existed until
the establishment of the so-called "inclusive" government was
almost wholly
the cause of all that debilitated the economy.
The collapse
was triggered, and continued, by intense governmental
profligacy, with
expenditure vastly in excess of means, by widespread
corruption, by
ill-conceived policies which deterred investments, by
defective service
delivery of parastatals, by excessive economic regulation,
and much
else.
That destruction of the economy was thereafter
exacerbated by ill
conceived, and grievously mismanaged, land acquisition,
redistribution and
resettlement policies which almost annihilated
agriculture, which was the
foundation of the economy.
As if all
these calamitous actions did not suffice, government then
further demolished
the economy by resorting to endless abuse of the
international community,
thereby alienating the goodwill and support which
could have considerably
facilitated economic recovery.
Government contemptuously
repudiated all international community
willingness to aid a Zimbabwean
economic resurrection, resorting to
unmitigated disregard for obligations
under Bilateral Investment Promotion
and Protection Agreements (Bippas), to
human rights abuses, and to
indifference for the fundamental principles of
justice, maintenance of law
and order and compliance with international good
governance norms.
It did so for long (almost a quarter of
century), that inevitably it
must be assumed that it did so deliberately and
intentionally, perceiving
the economic quagmire as a justification for
authoritarian rule, in turn
enabling endless retention of
power.
That the people it had been elected to serve were
being subjected to
horrendous suffering, misery, ill-health, malnutrition
and, for many,
life-endangerment, was irrelevant: all that mattered to it
was its own
ongoing national domination and
self-enrichment.
Then, in 2009 the "inclusive" government was
established. That was
not because Zanu PF wished it to be, and it certainly
did not welcome it.
It was because it eventually perceived no alternative
but to yield to
regional demands and pressures.
That it was
impelled to do so, rather than voluntarily, was evidenced
by its initial
prolonged resistance to concluding a power sharing
agreement, and thereafter
for many months it has failed to implement much
that it had agreed to do.
It was clearly resentful of the Global Political
Agreement, and has
continuously strived to comply with its provisions
minimally.
Nevertheless, the inclusive government brought
about cessation of the
economy's endless downward slide to a significant
extent because most of the
more substantive economic ministries ceased to be
in the hands of Zanu PF,
and constructive economic policies began to be
pursued.
Monolithic hyperinflation was halted, and Zimbabwe
began to enjoy
deflation. Commodity shortages diminished, and government
spending was
massively curtailed. The endless printing of unsupported money
ceased, and
economic deregulation progressively pursued. Vigorous efforts
were made to
restore harmonious international relations.
The economic recovery in 2009 has been minimal, as against that which
is
desperately needed, but nevertheless is a significant change from the
never-ending previous decline.
But the sharing of power is
transparently anathema to Zanu PF, which
deeply hankers for total resumption
of its authority and power. There can
be no other credible explanation for
its continuing failure to fulfil many
of its obligations under the
GPA.
It continues to hinder and obstruct the full implementation of
the
GPA, undoubtedly hoping that the inclusive government will cease to
exist.
But doing so is yet again a criminal destruction of the
economy, with
absolute disinterest that as a result widespread suffering
will continue to
be the lot of most Zimbabweans.
Eric
Bloch
http://www.theindependent.co.zw
Thursday, 05
November 2009 18:57
I FELT very sad when I read the article by Allister
Sparks in the
Business Day October 31 edition (which the Zimbabwe
Independent carried on
October 30) headed "Time for Zuma to stand up to
Mugabe". Though I have
never met him, I know that Sparks is a senior and
experienced South African
journalist. Because of this I have always expected
that he would
consistently respect the truth in everything he
wrote.
However, the article to which I have referred contains a
plethora of
untruths, which he told to advance a particular
agenda.
Then President of South Africa (Kgalema) Motlanthe, and
other Sadc
leaders did not "pressure" Tsvangirai and his MDC to "enter the
power-sharing government" with President Mugabe, Zanu PF and the MDC
(Mutambara).
All they did was to insist that the three
parties to the Zimbabwe
Global Political Agreement (GPA) should implement
their own agreement to
form an inclusive government. This decision was
directed at the three
signatories of the GPA, not merely the MDC. Contrary
to what Sparks says,
there was absolutely no "range of critical issues"
which President Mugabe,
arising out of the GPA, had not
met.
Like other readers, I would appreciate it if you gave
Sparks the space
in your newspaper to detail which these "critical issues"
were and what
President Mugabe had done, constituting what Sparks describes
as "playing
games".
The outstanding issue the MDC-T had
raised during the negotiations as
blocking the formation of the inclusive
government was the allocation of the
Ministry of Home Affairs, and not a
"range of critical issues".
The Sadc summit decided that this ministry
should be co-managed by two
ministers, one each from Zanu PF and the
MDC-T.
In this regard Sadc only supported a suggestion that had
been made by
Tsvangirai, accepted by the other two Zimbabwe negotiating
parties and
incorporated into the agreement about the distribution of
cabinet
portfolios.
To respond to the argument that the
Home Affairs arrangement would not
work, Sadc undertook to review this, as
well as the functioning of the
inclusive government in general, after six
months.
The Sadc Troika of the organ on politics, accompanied
by members of
the facilitation team, visited Zimbabwe last week precisely to
honour this
undertaking. The team would have visited Zimbabwe in September
but due to
pressing commitments in their respective countries it was decided
that the
team would undertake the exercise towards the end of October
2009.
Responding to the presentation of the MDC-T, Sadc said
that the issue
of the appointment of the governor of the Reserve Bank and
the
Attorney-General should be considered by the inclusive
government.
These appointments were made legally, before the
inclusive government
was formed. Once the contractual terms of the
incumbents in these positions
came to an end, the president of the republic
had a legal obligation to
appoint the required successors. In this regard
there was no requirement and
there could be no requirement that he should
consult private citizens, even
if these were leaders of political parties.
Indeed, nowhere does the GPA
mention the two positions in
question.
The GPA made no provision for the consultation which
the MDC-T and
Sparks claim was required. Rather, it said that once the
inclusive
government was formed, consultation with regard to senior
government
positions would take place among the parties in government
regardless of the
constitutional provisions empowering the president to make
the relevant
appointments.
Sadc accordingly said that the
Reserve Bank and Attorney-General
appointments should be considered by the
inclusive government. This was
because it recognised the fact that these
appointments could not be made
conditional to negotiation by political
parties.
Since the formation of the inclusive government
without regard to the
constitutional prerogatives of the president and
therefore to respect the
GPA, new appointments of ambassadors and senior
public officials have been
negotiated through the inclusive
government.
The same would have happened with regard to the
governor of the
Reserve Bank and the Attorney-General if the inclusive
government was in
place at the time when, legally, these appointments had to
be made.
With regard to the Joint Operational Command of the
security organs to
which Sparks refers, and contrary to what he says, there
is no requirement
in the GPA that this structure, normal in many countries,
should be
disbanded.
The GPA prescribes that overall
civilian supervision and direction of
the security establishment should be
exercised by a statutory National
Security Council (NSC), presided over by
the president and the prime
minister, serving respectively as the chair and
deputy chair of the NSC.
The MDC-T drafted the legislation to
give effect to this GPA
provision, cabinet and parliament accordingly
approved the legislation,
authorising the establishment of the NSC, which
has been done.
With regard to the security establishment
especially relating to what
was the contentious Ministry of Home Affairs,
which is responsible for the
police, your readers need to know that MDC
co-Minister of Home Affairs,
Giles Mutsekwa, has stated firmly, in public,
that the ministry is working
well.
Sparks has an obligation
to explain to your readers what President
Mugabe has done or not done,
relative to the implementation of the GPA,
which leads him to insult the
President as "Tricky Bob", alleging that "he
could not be trusted to honour"
the letter and the spirit of the GPA.
Sparks should also give
your readers the information he has, which has
led him to come to the
conclusion that the MDC (Tsvangirai)
treasurer-general, Roy Bennett is
facing "trumped-up charges of terrorism",
and is therefore innocent of the
charges preferred against him.
Alternatively, I am certain that Bennett
would appreciate it immensely, as I
would, if Sparks were to give evidence
during Bennett's High Court trial,
demonstrating with the facts obviously at
his disposal, that the charges
against Bennett are entirely
malicious.
This would help to assert the rule of law, and
challenge the
pernicious tendency towards the subversion of the principle
and practice of
due process, in many instances based on the politicisation
of criminal
misconduct.
What does Sparks mean when he
writes about "Mbeki's apologists" and
urges President Zuma and the South
African government to take action "if
Mugabe doesn't implement the GPA fully
and tries to rule alone"? Exactly
what has President Mugabe done or not
done, relative to what is prescribed
in the GPA, which justifies his
characterisation by Sparks as "the errant
president", with whom President
Zuma, "as guarantor", must "deal firmly"?
It is clear to me
that Sparks is committed to the achievement of a
particular agenda with
regard to Zimbabwe. Perhaps regime change as espoused
by the West. It is
very unfortunate that, rather than openly and honestly
stating his
objectives, as any honourable person should, he relies on the
propagation of
falsehoods to disguise his intentions.
The real outstanding
issues in the implementation of the GPA are:
Removal of illegal sanctions
imposed by the European Union and the United
States; Cessation of pirate
radio broadcasts by the West denigrating the
inclusive government by
indulging in hate messages; and the
constitution-making process which the
donor community is keen to hijack.
Simon Khaya Moyo is
Zimbabwe's ambassador to South Africa.
Simon Khaya
http://www.theindependent.co.zw
Thursday, 05 November
2009 18:55
THE International Monetary Fund which was the in the country
last
month to assess progress made in the implementation of government's
economic
policies projected that GDP would grow 3% this year and that
inflation would
remain restrained at 6%. The IMF verdict on the economy has
been celebrated
by officialdom as an endorsement of the current order by the
Bretton Woods
institution. State papers last week led with headlines that
the "country was
on the right track". But it is too early to celebrate.
There is a caveat to
the IMF's conclusions on the health of our economy. The
assumption on
economic growth is predicated on the fact that "there are no
policy
reversals or disruptive political developments" in the
country.
The IMF said for the economy to continue on the growth
path next year,
"political stability, fiscal prudence, improved governance,
stepped up
efforts to address intensifying macroeconomic risks, wage
restraint and
strengthening in the business climate are
essential".
IMF head of delegation to the Zimbabwe mission,
Vitaliy Kramarenko,
summed up what needs to be done: "The key challenge
going forward is to
build the necessary support for policies that would
ensure sustainability of
the nascent economic recovery and improvements in
living conditions for
Zimbabweans."
He is right. Our
current modest growth and newfound stability are
built on very shaky
foundations and the risk of Zimbabwe sliding back to the
madness and
violence of last year are real as cited in the report which said
the outlook
for next year was subject to "significant uncertainty and the
balance of the
risk to the uncertainty is slanted to the downside".
The IMF,
considering the situation on the ground at the moment, is
right to conclude
that growth next year could be hamstrung by a possible
deterioration in the
political situation, a potential emergence of liquidity
and solvency
problems in the banking sector and insufficient progress in
maintaining the
rule of law and property rights.
The tell-tale signs of this
instability have not evaporated since the
formation of the inclusive
government at the beginning of the year.
In fact lately there is
greater evidence of this potential for
instability. The failure to implement
key facets of the GPA and the
subsequent partial withdrawal of the MDC from
government, the arrest of
lawyers on spurious charges, continued farm
invasions and the now-so-boring
but damaging attritional war of egos between
Finance minister Tendai Biti
and central Bank governor Gideon Gono have
conspired to sabotage growth
potential and recovery.
The
failure especially to fully consummate the GPA is a major threat
to
political stability in this country. We have also noticed an unfortunate
trend lately. Instability in the government of national unity has provoked
delinquent behaviour in Zanu PF and with it arms of government under the
stewardship of the party. The detention and deportation of UN torture expert
Manfred Nowak is a case in point.
Civic society leaders
including Zimbabwe Election Support Network
staff have been arrested on
allegations of holding political meetings
without informing the police. We
ask what happened to assurances made by
Home Affairs co-minister Giles
Mutsekwa in July regarding public gatherings?
The message is clear here: If
the MDC pulls out of the GNU, then we will
behave badly whatever the
consequences, Zanu PF seems to be saying.
As long as there is
no quick settlement to the current political
morass, we are going to witness
more incidents of damaging behaviour by the
state in the name of sovereign
rights. Already a lot of damage has already
been done to the detriment of
investor confidence which was beginning to
gather pace. We are relapsing
into a state business would not want to
invest. We seem to be making a
valiant effort to reclaim the bad-boy status
we had until
recently.
The IMF in its report warned of the danger of this
relapse. The fund
said political uncertainties could result in a "sudden
stop of capital
inflows, higher than expected domestic credit growth or an
adverse terms of
trade shock could trigger a disorderly balance-of-payments
adjustment with a
concomitant negative impact on financial system stability,
revenues and
growth".
Our credit risk has continued to
deteriorate. Those offering lines of
credit are circumspect of the risk
inherent here. Any banker will testify to
the punitive premium on risk
imposed by international financiers. Since the
withdrawal by the MDC-T from
the GNU the premium has gone up and acts
abridging fundamental basic rights
raise the risk.
The net effect of this high-country-risk is the
unattractive costs of
borrowing. Capital is expensive and industry cannot
borrow to reopen
factories or improve capacity utilisation. Economies are
built around
credit. It is fundamental to spurring business activity and
improving
national savings.
Our politics are embarrassingly
delinquent at the moment. It is not
good for business and is a good setting
for social unrest as long as
industry and commerce cannot create jobs to
absorb thousands of youths who
can easily be bought to crush skulls and
terrorise political opponents.
There is a lot of hype about the
upcoming budget and the government
has started to talk about a successor
economic programme to Sterp but all
this will come to nothing as long as we
have politicians behaving badly in
our midst.
http://www.theindependent.co.zw
Thursday, 05
November 2009 18:44
PRESIDENT Robert Mugabe has since the partial
pullout of the MDC from
government exhibited his usual intransigence to the
full consummation of the
global political agreement that gave birth to the
inclusive government in
February. The octogenarian leader has fallen prey to
the trappings of power
and those of Zanu PF to the extent that he has become
a prisoner of
hardliners in the party whose sole mission is to torpedo the
nine-month-old
government.
He has been forced to toe a line he
knows is against the letter and
spirit of the GPA and the Sadc Communiqué of
January 27, which set timelines
for the formation of the inclusive
government and outlined sticking points
of the unity pact that needed to be
resolved.
He has allowed brinkmanship among propagandists in his
government
offices and Zanu PF to spin the yarn to Zimbabweans that his
party had
fulfilled requirements of the GPA and that it was now up to Prime
Minister
Morgan Tsvangirai and the MDC to ensure the lifting of US, British
and
Western sanctions and put an end to international radio broadcasts into
the
country.
I find Mugabe's mastery of double-speak dumbfounding
at best,
particularly in the past three weeks of the MDC's disengagement. On
the one
hand he rubbishes Tsvangirai and his party whilst on the other
speaks
glowingly about the achievements of the inclusive
government.
Just last Friday, Mugabe went ballistic and was just short
of serving
divorce papers on the MDC after telling Zanu PF's central
committee meeting
in the capital that Tsvangirai and his party were not a
"true and genuine
partner".
What was striking about his utterances
was his questioning of the
sincerity of the MDC - to the inclusive
government - when everyone in the
know is aware that the smooth sailing of
the government is being hamstrung
by Zanu PF's intransigence.
"We
must no longer trust those who pretend to be in the inclusive
government and
have jumped in and out of it," Mugabe told the central
committee. "They can
never be true and genuine partners and have proved to
be dishonest. We,
however, want to assure that we will not allow the
situation to continue
like that."
He went further to claim without any hint of evidence that
the MDC was
being "driven by Rhodesians who want to come back and take back
the land".
"They are also driven by their European sponsors. They are
agents of
Europe, they want regime change," Mugabe added.
Mugabe's
utterances was dissembling spin meant to pacify hardliners in
Zanu PF who
accused him of selling out by inking a unity pact with
Tsvangirai and the
leader of the smaller formation of the MDC headed by
Deputy Prime Minister
Arthur Mutambara.
The 85-year-old Mugabe wants to be seen in his party
as principled man
who does not crack under pressure ahead of Zanu PF's
December congress. He
has become a prisoner of the hardliners who secured
his presidential
re-election last year through a violent campaign of
unprecedented
proportion.
A day after his utterances at the central
committee meeting, Mugabe
was a changed man telling everyone who cared to
listen at the burial of
national hero Misheck Chando that Zanu PF and the
MDC were engaging each
other to find a lasting solution to the latest
impasse. The tough talking of
Friday had gone and it seemed national
interest had apparently dawned on
him.
"We are glad we are
talking," said Mugabe. "We cannot report it
anywhere. The UN says it's your
issue and this is our issue. We settle it
here, it is not for
others."
Indeed, the current impasse should be resolved internally, but
with
the assistance of Sadc who are the guarantors of the GPA.
Mugabe should not allow hardliners in government and Zanu PF to
imprison him
because of their quest to safeguard their interests at the
expense of the
nation.
He should constantly remind the hardliners that their push for
the
failure of the inclusive government is completely misplaced.
The GNU should not be allowed to collapse and we hope that Sadc and
the
African Union will ensure this.
One of the country's leading political
scientists, Professor Eldred
Masunungure, told me on Wednesday that the
inclusive government is Sadc's
baby and it will not allow the baby to
suffocate.
"Sadc was rather delinquent in the first 12 or so months of
the GPA
and had even washed its hands of this matter but it has come back
with a
bang and Sadc has woken up from its deep slumber," Masunungure said.
"This
explains the surge in activity by Sadc and its organs. So, the
inclusive
government will be rescued. Further, the principals themselves
have no
incentive to see the government collapse and have every disincentive
to see
it collapse. Even the un-reformable hardliners in both camps know
that there
is hardly any future in a premature death of the coalition
government. So,
rest assured that the life of the inclusive government is
not in grave
danger. The government will wobble along to the finish line,
perhaps to the
consternation of many."
We hope
so!
Constantine Chimakure