Army deployed for Zanu PF campaign

http://www.theindependent.co.zw

Thursday, 04 November 2010 21:38

SERVING military officers and other security agents have been deployed to
Zanu PF, including at the party’s headquarters in Harare, to revive the
party’s crumbling structures ahead of anticipated elections next year.

President Robert Mugabe is feverishly pushing for elections next year
despite resistance from senior party officials in Zanu PF and the MDC
formations in the inclusive government.
Mugabe has said he wants the referendum on the new draft constitution in
March next year and national elections in June. This has put him into
conflict with the constitutional parliamentary select committee which wants
the referendum on June 30.

The constitution-making process is riddled with chaos, confusion and
violence, making it highly improbable that the process will be completed by
March next year.

Informed sources this week told the Zimbabwe Independent that Mugabe is
trying hard to form a consensus in his party for elections. In the meantime,
Mugabe and his cabal grouped around the Joint Operations Command (JOC),
which brings together the army, police and intelligence chiefs, have been
working hard on the ground for elections.

Sources said a group of soldiers — code-named Boys on Leave — has been
deployed to work with Zanu PF to rebuild and renew the party’s collapsing
structures. The team is led by Air Force of Zimbabwe Air Vice-Marshal Henry
Muchena. Muchena is said to be working with a team of 300 army officers who
are scattered around the country. Former Central Intelligence Organisation
(CIO) director internal, Sydney Nyanhongo, is also part of the team and is
now working directly with Zanu PF.

The army helped out Mugabe mainly during the presidential elections in 2002
and 2008. The Zanu PF politburo resolved after the March 2008 elections in
which the party lost control of parliament to MDC-T and Mugabe was defeated
in the first round of polling to use a “warlike” strategy to win the
elections. A campaign of violence and intimidation followed resulting in
MDC-T leader Morgan Tsvangirai pulling out of the polls. State security
service chiefs said they would not respect Tsvangirai even if he won. They
insinuated they could even oust him through a coup if he won.

This came as Zanu PF politburo officials heard from their commissariat
department that the party structures were in shambles countrywide, raising
fears that the party could perform dismally as it did in March 2008. Mugabe
admitted after Zanu PF for the first since 1980 lost control of parliament
that his party was “disorganised, divided, fragmented, fractured and weak”
due to factionalism and imposition of candidates.

Politburo members told the Independent that an extra-ordinary politburo
meeting on Wednesday was shocked after political commissar Webster Shamu
(pictured) revealed that grassroots structures had crumbled and were in a
state of chaos.

Sources who attended the meeting said Shamu told the politburo that Zanu PF
was not ready for elections considering its structures had collapsed due to
failure of the centre to hold and ravages of chronic factionalism. Mugabe
was said to have indicated party structures must be revived as a matter of
urgency.

Previous Zanu PF political commissars, particularly Richard Ndlovu before
the 2008 elections, had repeatedly pointed out that party structures had
gone to rack and ruin, but not much has been done to revitalise them. Zanu
PF officials concede that their party has collapsed into the state and that
is why the army and other security structures are used to prop it up.

“Mugabe’s and Zanu PF’s strategy for elections is very clear,” a senior
government official said.

“The party is going to rely on the state security structures to support its
campaign. Zanu PF structures are very weak and in some places have collapsed
but the party is relying on the use of army and other state security
structures for support, especially during elections.”

Zanu PF government officials and JOC have deployed Muchena and 300 army
officers to help out the party. The current party strategy for elections is
also based on this. Before the constitution-making exercise Zanu PF engaged
Boys on Leave to work for them and they outmanoeuvred the MDC-T and other
parties.”

Muchena, who assumed his current position in the Air Force in 2002 after the
army helped to retain Mugabe during the controversial presidential election
that year, is now based at Zanu PF headquarters in Harare and is working
with six senior officers to re-organise and revive Zanu PF structures.

Sources said Muchena’s team also includes three top commanders stationed at
each of the country’s 10 provinces. These commanders were being assisted
three soldiers per district deployed around the country. Zimbabwe has 59
districts and 1 200 municipalities. The soldiers deployed at district level
were stationed at all the 59 districts.

The sources said the team comprised soldiers who were involved during the
2008 election campaigns. “The soldiers involved are those who joined the
liberation before 1975, which means they are above 40 years and have served
in the army for some time,” a source said.

Muchena’s team is complemented by war veterans and Zanu PF youth militias.
War veterans leader Jabulani Sibanda has of late been roaming the country
campaigning for Zanu PF and causing havoc in his trail. Since 1980 Zanu PF
has always conducted para-military campaigns while other parties engaged in
political campaigns.

Defence Minister Emmerson Mnangagwa, who is also the party’s secretary for
legal affairs, said yesterday the army was not working with Zanu PF.
He said the army did not deploy any officers to the country’s districts for
campaign purposes but that 10% of the army’s 40 000 men were sent out every
month countrywide for national security reasons.

“The army did not deploy any soldiers for campaigning,” he said. “Every
month we deploy 10% of the total force, which is 10% of 40 000, to its bases
geographically dispersed among the different districts for reasons of
national security. It is government policy to deploy soldiers across all the
political districts.

“There are also retired officers countrywide that are allowed to wear their
uniforms on appropriate occasions. So what people see sometimes are retired
soldiers and movement of soldiers being deployed to and coming back,” he
said.

Mnangagwa added that retired army personnel were free to support political
parties of their choice. He gave an example of retired officers like
Tichaona Mudzingwa, Giles Mutsekwa and Martin Rupiya who have chosen to join
MDC-T, while Colonel Christian Katsande and Samuel Mavuti have chosen to
serve in parastatals.

“Likewise, some have joined Zanu PF like Claudious Makova and the late
Vitalis Zvinavashe chose to occupy high offices in Zanu PF. Can you then say
I deployed Mutsekwa to MDC-T?” Mnangagwa asked.

Zanu PF spokesmen however virtually confirmed Muchena and others were
helping out his party. “Muchena could be assisting but he is not fully
employed by the party. He just comes to assist like the likes of (Tafataona)
Mahoso and (Jonathan) Moyo who come here from time to time to assist us.”

Dumisani Muleya

Mnangagwa takes lead in Mugabe succession race

http://www.theindependent.co.zw

Thursday, 04 November 2010 21:31

THE complex saga of President Robert Mugabe’s succession has taken a new
twist with Zanu PF insiders now saying political heavyweight Minister
Emmerson Mnangagwa has gained ground to take over from the ageing leader
after his faction was badly routed by the camp led by retired army commander
Solomon Mujuru at last year’s party congress.

Indications  are that Mnangagwa, renowned for his clandestine political
manoeuvrings, is now recovering and regaining lost ground in a bid to
replace President Robert Mugabe.
Observers thought Mnangagwa’s prospects of succeeding Mugabe were gloomy
after Mujuru’s faction won key party positions in the Women’s and Youth
Leagues and held most posts in the politburo.

Mnangagwa has survived several attempts to pull him down and each time he
has emerged stronger and more threatening to Mujuru’s plans to control Zanu
PF.

Top Zanu PF officials are now convinced that Mnangagwa is being groomed to
take over when Mugabe retires after the next elections, which the president
says must be held mid-2011.

This, sources said, is based on the fact that he is the only Defence
minister that drives around in a mini-motorcade. Former Defence ministers
Sydney Sekeramayi, now security minister, and the late Moven Mahachi never
used a motorcade.

In addition, there is talk that he is using the presidential helicopter, but
Mnangagwa yesterday dismissed this saying he uses an army helicopter when
travelling outside Harare which has similar colours to the one used by the
president.

“It’s not the president’s helicopter but an army helicopter,” he said. “It’s
not true that I am using the presidential helicopter,” said Mnangagwa who
laughed off the suggestion.

But one Zanu PF insider said: “The helicopter issue has been the talk of the
town in Zanu PF. People are convinced that he has already started using the
presidential helicopter — which is a preserve of the president.”

Insiders said alliances and realignments were being created, with most
people of the view that it was better to back one candidate to ensure Zanu
PF’s continued survival in the face of a formidable MDC-T challenge.

“Top party officials have now accepted that it is better to work with the
devil we know,” another insider said. “We have realised that we are better
off fighting MDC as a united party than a fractured one. We have all
realised that if we are not careful, we will end up all losing out if we
continue fighting each other. Our common enemy is MDC.”

The insider added: “We all have interests to protect and what is important
is to get that reassurance from Mnangagwa that our interests will be
protected and that he won’t let down those people who have opposed him all
this time.”

The sources said relations between Mnangagwa and Mujuru have since thawed,
with reports saying the two recently met at the Defence minister’s offices
in the capital to iron out their differences.

“They have a common interest and that common interest makes them want to
work together. I am reliably informed that the two met at Mnangagwa’s
offices not so long ago,” a source said.

However, Mnangagwa scoffed at the allegations that Mujuru had been to his
office to seek his reassurance that he would protect the former army
commander’s interests when he takes over from Mugabe.

Mnangagwa has maintained a low profile, refusing to discuss the succession
issue publicly. He has said all the stores flying around about the
succession were “media speculation”.

“Yes, I met with Mujuru but it was a strictly business meeting,” Mnangagwa
said. “I don’t know where all this is coming from. I have never said I
wanted to be president and yes I had offered myself (for the vice
presidency) when (the late Vice President Simon) VaMuzenda died because I
was the third top senior person from the old Zanu PF at that time. But since
then I have not said anything.”

In November 2004, Mugabe amended the Zanu PF constitution to insert a clause
that one of the vice presidents should be a woman and this was seen as a
ploy to block Mnangagwa, who at that time had the backing of at least six
provinces. Mnangagwa was the party’s secretary for administration
Because of his army and CIO links, Mnangagwa is emerging as one of the most
powerful persons in Zanu PF.

“He is well-connected in the security structures and that helps him a great
deal,” said another insider.

Mnangagwa, the sources said, had managed to close ranks with all top army
officials, with whom he now enjoys cordial relations. These include the
commander of the Zimbabwe Defence Forces, Constantine Chiwenga, who in the
past was linked to Mujuru’s faction.

According to party sources, anyone that commands the support of the security
agencies – the army, intelligence and police – has a head start in the
succession race. Army generals have played a significant role in Zanu PF’s
military establishment during the liberation struggle and after Independence
and as a result retired soldiers, including war veterans, are an important
factor in Zanu PF’s power relations.

For many years, Mugabe’s Zezuru clan has been pushing for Mujuru’s faction
to take over the party’s reins of power, but sources say the Zezurus now
feel that replacing the president with another clansperson could further
divide the party.

“Replacing Mugabe with another Zezuru might be problematic,” another insider
said. “They now want a person not from that clan to replace Mugabe because
they feel that if they put in a Zezuru, there might be resistance from other
members who already have been complaining that other regions are not getting
powerful posts.”

Already the presidium is in the hands of the Zezurus and Ndebele people –
Mugabe, vice-presidents Joice Mujuru, John Nkomo and chairman Simon Khaya
Moyo.

Mugabe has always had a soft spot for Mnangagwa, from a rival clan, the
Karanga. When Mnangagwa lost his Kwekwe seat to MDC in parliamentary
elections in 2000, Mugabe cushioned him by decreeing that he be given the
powerful parliamentary speaker’s post.

Again in 2005, when Mujuru’s camp thought they had finally killed Mnangagwa’s
political career, after his second narrow electoral defeat to the MDC,
Mugabe appointed him rural housing minister, which gave him a platform from
where he could rebuild his political fortunes.

After winning a parliamentary seat in 2008, Mugabe appointed Mnangagwa
minister of the powerful Ministry of Defence.

Faith Zaba

‘Zanu PF structures shambolic’

http://www.theindependent.co.zw

Thursday, 04 November 2010 21:30

ZANU PF structures are in shambles countrywide, the Zimbabwe Independent has
learnt.
Senior Zanu PF members told the Independent yesterday that an extra-ordinary
politburo meeting on Wednesday was shocked after political commissar Webster
Shamu revealed that grassroots structures were in a mess.
Sources who attended the meeting said Shamu told the politburo that Zanu PF
was not ready for elections considering the troubled structures that were
destroyed by factionalism. But President Robert Mugabe instructed Shamu to
put the party structures in order as a matter of urgency.
“Zanu PF is powerful at the top but it doesn’t exist at grassroots level,” a
senior politburo member said. “Shamu gave a damning report during the
politburo meeting that the party was dead at cell and branch levels.”
The source said although Mugabe insisted that Zanu PF has to go for
elections, Shamu suggested that 2011 could not be the most opportune time
for elections.
“It seems the politburo doesn’t have a common view over elections,” one
politburo member said. “Some members might not be open to challenge what
Mugabe say, but we know that all Zanu PF senior officials don’t want
elections.”
Mugabe has said he wants elections by June 2011 after a draft constitution
referendum in March despite calls by civil society and MDC formations for
implementation of democratic reforms first.
Zanu PF’s Women’s League and chiefs have endorsed Mugabe as their candidate
for the elections.
The source said Zanu PF was sharply divided at grassroots level due to
factionalism pitting Vice President Joice Mujuru and Defence minister
Emmerson Mnangagwa who are sucked in a bitter succession battle.
Mugabe, the politburo member said, told the Wednesday meeting that party
officials need to bury their differences and unite in the face of elections.
The politburo members said Mugabe reiterated that he was fed up with the
inclusive government and wanted early elections, which he said he would win.
The president has already started mobilising for elections, observers note,
after reactivating state security agents, army and the police who are
intimidating political opponents in rural areas.
Mugabe has also roped in Big Brother star Munyaradzi Chidzonga and young
musicians to woo youths to help him penetrate urban areas where MDC-T enjoys
support. Zanu PF plans to use apostolic sect members to win the elections
and the party is urging them to register as voters.
Recently, Mugabe pushed for civil servants’ loans to lure the underpaid
workers to rally behind him in the polls.

Brian Chitemba

Diamond saga: A case of deceit, fraud

http://www.theindependent.co.zw

Thursday, 04 November 2010 20:16

DETAILS of why five senior Zimbabwe Mining Development Corporation (ZMDC)
officials and the local representative of Core Mining and Mineral Resources
were arrested this week emerged yesterday, shedding light on the swoop by
police which has left executives in the corruption-ridden mining sector in
shock.
Documents in the possession of the Zimbabwe Independent show that the ZMDC
officials arrested were part of the company’s board select committee which
comprised the then board chairperson (Gloria Mawarire), chairman of the
finance and investment committee (Ashton Ndlovu), a member of the technical
committee (Mark Tsomondo) and the chief executive officer (Dominic
Mubayiwa). Suspended ZMDC company secretary to the board Tichaona Muhonde
was also arrested.
Lovemore Kurotwi, the local representative of Core Mining and Mineral
Resources and deputy chairman of Canadile, was also arrested. They are
facing allegations of fraudulently entering into a joint venture mining deal
with the state-owned ZMDC through dishonest means.
The ZMDC officials who were part of the board select committee were the ones
who conducted due diligence on “approved strategic investors”, South Africa’s
New Reclamation Group and Core Mining and Minerals, which later formed joint
ventures with the state-owned mining company.
The joint venture companies which were controversially given diamond claims
and mining licences in Chiadzwa in Marange district, Manicaland, were
Condurango Investments, which traded as Mbada Diamonds, and Canadile.
Mbada is a joint venture between ZMDC’s subsidiary, Marange Resources, and
New Reclamation Group’s Grandwell Holdings.
Documents show that Mubayiwa, Mawarire, Tsomondo, Muhonde and Ndlovu
conducted a due diligence exercise on New Reclamation and Core Mining and
Minerals from August 4-6 last year.
Mubayiwa, Mawarire, Tsomondo, Muhonde and Ndlovu, as well as Kurotwi were
arrested for fraudulently using the Channel Islands-headquartered
diversified natural resources company, BSG Resources Ltd’s name to obtain a
contract on behalf of Core Mining and Minerals.
The six had claimed that Core Mining and Minerals, in which Kurotwi has
46,23%, was a subsidiary of BSG Resources Ltd when it was not. Kurotwi in
turn had 23% in Canadile.
BSG Resources Ltd has offices in the Channel Islands, London and
Johannesburg.
A senior government official said the fraud was “brazen” but had gone
undetected all along. The Independent had since the beginning of the year
been doggedly investigating this issue and the whole Chiadzwa diamond mining
saga managing to unearth a series of irregularities and controversial
arrangements surrounding the issue.
“The fraud started in March last year when Kurotwi approached Mines minister
Mpofu saying BSGR wanted to mine diamonds in Marange. The minister was
satisfied with BSGR’s credentials and then he referred the issue to Mubayiwa
as chief executive of ZMDC,” a senior government official said yesterday.
“Mubayiwa communicated a lot with Kurotwi over the issue and ended up
recommending Core Mining and Mineral Resources under the guise that it was a
special purpose vehicle for BSGR.”
The official added: “Two memoranda of agreements were prepared, one with
BSGR as the guarantor and the other with Core Mining. BSGR’s guarantee was
said to be US$2 billion. However, it was later realised that Core Mining was
not a BSGR vehicle but Kurotwi’s company. Core Mining had no capital or
equipment.
“It came to Zimbabwe with nothing and started borrowing money as Canadile
from Agribank (US$1,5 million) for mining activities. In the end Kurotwi, as
Core Mining’s main shareholder who was part of Canadile, started reaping
dividends without putting anything on the table. This is where the problem
is. ZMDC officials facilitated this fraud for reasons best known to
themselves and Kurotwi was the beneficiary.”
The whole process was fraught with controversy and possible fraud. The ZMDC
select committee had visited Core Mining offices in Kimberley, South Africa,
on August 6 last year. They meet with Core mining directors and
shareholders.
The ZMDC team’s report of the mission was revealing. It said they found the
Core Mining team “not prepared for boardroom presentations to the select
committee”. The excuse for the abortion of the presentation was that there
was some “communication breakdown” as Core Mining thought the visit was only
for “touring mining operations”.
Core Mining officials told ZMDC that they had a “principal domiciled in
Israel and the principal was responsible for financing the entire project”.
“The Core Mining team emphasised that the principal’s name must remain
confidential,” documents show.
While there, the ZMDC team failed to obtain adequate information on the
project implementation matrix, corporate profile, directors and shareholders’
profiles, company registration documents, information on operations and
other relevant information.  Documents show that it was clear to ZMDC
officials that Core Mining was a dubious company, but all the same it was
given a huge mining contract in Chiadzwa.
“This is where the problem is. ZMDC board select committee members either
did not do their job or were paid to make misleading recommendations.
Kurotwi was part and parcel of all this,” a government official said.
Before they went to South Africa, ZMDC and New Reclamation, as well as Core
Mining and Minerals, had signed memoranda of agreement in July last year for
the exploration and exploitation of diamonds in Marange. The agreements were
transitory for three months within which investors were to mobilise
resources and equipment to fulfill conditions of the agreements.
ZMDC was expected to conduct a due diligence exercise to establish where new
Reclamation and Core Mining had the capacity to mine the Chiadzwa diamonds.
As a result the ZMDC board select committee visited South Africa from August
4-6 last year. In carrying out the due diligence exercise the select
committee relied on the evaluation guidelines which included financial
capacity, technical capacity, management systems, business plan and
understanding of the works required at Marange.
On August 4 last year, the ZMDC board select committee held a meeting with
New Reclamation directors and shareholders at Sandton, Johannesburg.
However, the committee was very clear that New Reclamation, despite
eventually entering into a huge mining deal with ZMDC, was not a mining
house. It said the company is “not a mining house and is currently not
involved in mining, let alone diamond mining”.
“Further, it has no diamond mining as part of its vision and growth
strategy,” the committee said in recommendations to Mpofu last year. The
committee said the only useful quality which New Reclamation had with
regards to mining was that it had “enthusiasm to enter into diamond mining
in partnership with ZMDC”.
During the visit no diamond mining equipment was viewed because it was not
there, save for the company’s claims that it was going to mobilise the
required equipment. So ZMDC had entered into a memorandum of agreement with
a scrap metal company which did not even have mining equipment, let alone
operations and experience.

Dumisani Muleya

Zim slips down World Bank business index

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:17

THE inclusive government yesterday received a vote of no confidence after
the country slipped by one position to 157 in the World Bank Doing Business
Report which measures government’s commitment to create an environment of
doing business easily.
The 2011 report, which covers nine formal sector indicator sets in 183
economies, was compiled by the International Finance Corporation, a private
sector arm of the World Bank.
The Doing Business Report covers the period up to June year-on-year.
The Bretton Woods institution ranked Zimbabwe ahead of Angola and
strife-torn Democratic Republic of Congo in rankings portraying the country
as one of the worst investment destinations in the world.
Singapore maintained pole position in the second year running in a survey
that has been in place for five years. Mauritius was ranked the best
performing country in the region after maintaining the position for two
years.  Zambia on the other hand became the best performer in Sadc after
climbing eight places up the ladder to settle at 76.
Enforcing contracts contributed to the country’s dismal performance as seen
by a drop to 110 compared to 81 recorded last year.
This indicator which critics say reflects Zimbabwe’s appalling record in
upholding property rights is determined by following the evolution of a
payment dispute and tracking the time, cost, and number of procedures
involved from the moment a plaintiff files the lawsuit until actual payment.
Similarly, a slump was recorded in an indicator that measures government
commitment to protecting investors. Out of the nine indicators, the country,
however, improved on dealing with construction permits after it went up the
ladder to position 172 from 175.
Starting a business in the investment-starved nation continues to be a
nightmare. The IFC ranked Zimbabwe 143, two points down from last year’s
position.
It remains to be seen whether this ranking would ring hollow on government
which has been lagging in setting up a one-stop investment centre to
eliminate bureaucratic bottlenecks.
Government has twice this year delayed the restructuring of the Zimbabwe
Investment Authority into an efficient investor-friendly authority.
There was no change on trading across borders and closing business which
rated the country at 168 and 156 respectively.
The indicators, however, do not measure all aspects of the investment
climate such as political and economic stability, corruption, level of
labour skills, proximity to markets, and regulation specific to foreign
investment or financial markets.
In September, visiting World Bank official David Bridgman advised government
to overhaul investment regulations in a move expected to unlock investment
inflows.
“Government should eliminate the waiting period in confirming business
registration at the National Social Security Authority (NSSA) to improve
conditions for starting a business,” Bridgman said.
Apart from NSSA, potential investors have to endure registration and
assessment at local authorities, Registrar of Companies and the
Environmental Management Agency.
“Rwanda and Mauritius show that there is no obstacle to African countries
being counted among the best in the world. Other rapid reformers –– Burkina
Faso, Liberia, and Kenya –– have reinforced lessons on how rapid reform can
be achieved,” Bridgman said.

Bernard Mpofu

Zim banking system remains fragile — IMF

http://www.theindependent.co.zw

Thursday, 04 November 2010 20:55

A VISITING International Monetary Fund (IMF) mission to Zimbabwe has asked
government to immediately step up a restructuring exercise of the
debt-ridden Reserve Bank after warning that the banking system remains
fragile.
The multi-lateral lender said the country’s banking system remains exposed
despite restoration of the central bank’s function of lender-of-last-resort.
Official documents in the possession of the Zimbabwe Independent show that
Vitaliy Kramarenko, head of the IMF team, this week made several pre-budget
submissions to Finance minister Tendai Biti aimed at effectively managing
the fiscus ahead of the presentation of a fiscal policy statement in
parliament later this month.
The IMF team was in the country between October 25 and November 3.
“Efforts aimed at RBZ financial restructuring should be stepped up,”
Kramarenko said. “The RBZ’s financial distress distracts it from focusing on
core functions and continues to adversely affect financial institutions.
There is an urgent need to bifurcate the balance sheet and transfer non-core
assets and liabilities to a properly legislated Special Purpose Vehicle
(SPV), along the lines of recent IMF TA recommendations.”
The IMF said the US$7 million channeled to restore the apex bank’s core
function of protecting the banking system is insufficient to mitigate
financial shocks in the financial services sector. Last week, Biti said
government was ready to increase funding.
“Although the recently created US$7 million liquidity facility at the RBZ
could provide strictly limited “convenience” liquidity to one or two banks,
its size is clearly inadequate for the purposes of emergency liquidity
assistance even to a single institution. This limitation in the use of the
liquidity fund should clearly be communicated to banks,” reads the IMF
document.
The central bank, according to official figures, owes nearly US$1,5 billion
to its creditors. Following the use of multi-currencies last year and
amendments made to the Reserve Bank Act, the bank embarked on a
restructuring exercise that includes non-involvement in quasi-fiscal
activities and massive job cuts.
The systemic risk to bank capitalisation from exposures to the RBZ,
according to the Bretton Woods institution, is high and its containment is
essential to maintaining financial stability.
The mission further advised government to limit on-budget cash expenditures
saying the state could register a US$400 million surplus if it “guards
against expenditure overruns” in the fourth quarter of the year. Government
is this year expecting an 8,1% GDP growth buoyed by a rebound in agriculture
and mining.
On taxes, the IMF team said government should in the medium term focus on
broadening the tax base, a possible reduction in tax rates, and a trade
tariff reform.
Government, Kramarenko said, should “further clarify” the implementation of
indigenisation regulations by speeding the completion of sectoral committees
tasked to advise the state on the empowerment regulations.
In March, Indigenisation and Empowerment minister Saviour Kasukuwere
gazetted empowerment regulations that compel foreign-owned companies valued
at US$500 000 or more to dispose of their controlling interest to black
Zimbabweans over the next five years.
Faced with condemnation both within and outside government, Kasukuwere in
August set up 13 sector- specific committees to review the regulations.
“Despite these recent steps, investment continues to be constrained by
infrastructure bottlenecks, labour market rigidities, lack of security of
land tenure, and insufficient clarity on specific details regarding
ownership under the indigenisation legislation,” Kramarenko said.

Bernard Mpofu

Drought-prone regions face starvation

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:16

RURAL households in Masvingo, Matabeleland provinces and the extreme western
and northern areas are now running out of cereals and they need urgent
government and humanitarian food assistance to avert possible widespread
starvation.
The Famine Early Warning System Network for Food Security Outlook (Fewsnet)
from October 2010 to March 2011 said in the next six months an increased
number of people in areas which were the most affected by poor rains during
the 2009/2010 agricultural season were likely to face starvation.
“As the lean season commences most households in the traditionally grain
deficit provinces of Masvingo, Matabeleland, the extreme western area, and
northern area of the country have run out of their own cereal stocks and are
already reliant on inadequate and erratic maize supplies on the market,”
reads the report.
Fewsnet said the people’s hope now lay with humanitarian and government food
assistance programmes.
“Though there is likely to be an improved supply of basic commodities on the
market throughout the outlook period, prices of basic commodities are
expected to increase, limiting access for the very poor and poor households
in urban areas. These affected households are expected to be moderately food
insecure throughout the outlook period,” read the report.
“The Grain Marketing Board (GMB) grain sales are not very significant across
the provinces, some cereal deficit households prefer buying from traders
whose prices are lower. Despite the limited supplies on the market,
households are also facing access challenges as prices of grains on the
market are picking up and this is expected to prevail through to the next
harvest in April/May. As a result, most vulnerable households will require
food assistance.”
The report said according to an assessment by ZimVAC Rural Livelihoods,
Masvingo, Matabeleland North and Matabeleland South provinces and northern
parts of the country had the highest prevalence of food insecurity due to
the dry spell in the second half of the 2009/2010 cropping season.
“As is expected, a majority of very poor and poor households have run out of
their cereal stocks and are relying more on the market to meet food
requirements.”
“The main shock affecting households in this zone and other parts of the
country is the high cost of agricultural inputs. Farmers might not benefit
from the predicted favourable rains in both halves of the 2010/11 rainy
season if they fail to access the costly inputs. Though inputs are readily
available on the market, a majority of the small-holder farmers are not
likely to afford this.”

Wongai Zhangazha

GNU not investor-friendly

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:15

MOST foreign investors are shying away from Zimbabwe because they do not
view the inclusive government as a genuine power-sharing arrangement,
Development Bank of Southern Africa (DBSA) chief economist Samson Muradzikwa
has said.
Speaking at the launch of the Zimbabwe Independent annual Banks and Banking
Survey in Harare yesterday, Muradzikwa said the real problem facing
Zimbabwean banks and the economy in general was foreign investors shying
away from the country because they see the government of national unity as a
marriage of convenience which could break down at any time.
“It goes without saying that the real problem and challenges (why investors
are not coming to Zimbabwe) is related to the politics of the day,”
Muradzikwa said.
He said issues such as technology, networks, diversified activities, capital
markets and liquidity were only symptoms of the real problem.
“It is a fact, as unpalatable as it may sound, that most foreign investors,
those with the muscle to inject the needed liquidity in to the economy, do
not view the inclusive government as a genuine power-sharing arrangement,
nor do they necessarily bank on the stability and effectiveness of this
government,” said Muradzikwa who was the guest of honour.
Foreign direct investment (FDI) in Zimbabwe totalled US$60 million in 2009,
an increase of $8 million from the US$52 million recorded the previous year,
according to the World Investment Report released in July by the United
Nations Conference on Trade and Development (Unctad).
Communication between President Robert Mugabe and Prime Minister Morgan
Tsvangirai is said to have broken down after the president unilaterally
re-appointed provincial governors, and appointed judges and ambassadors,
among others, which outraged the premier and re-ignited their fierce
rivalry.
Mugabe and Tsvangirai’s relationship is said to have deteriorated further
last week after the prime minister boycotted cabinet for the second time
this month
Mugabe last week said he wants the referendum on the new draft constitution
in March and elections in June next year.
Analysts say his relations with Tsvangirai will almost certainly get worse
towards elections.
“With the prospect of an election and the potential wave of violence this
may unleash, the risk perception and thus investor appetite for Zimbabwe
could be turning negative,” Muradzikwa said.
Muradzikwa said the long term sustainability of the banking sector and the
economy in general depends on foreign direct investments and the resumption
of balance of payments support from the IMF as well as official development
assistance.
“These international capital flows depend on the stability, certainity and
predictability of socio-economic and political conditions,” he said.
Speaking at the same function, FBC Holdings chief executive officer
Livingstone Gwata said monetary authorities and banks should encourage
people to use plastic money given the convenience and safety that is
associated with the system against a background of increased fraud and fake
US dollar notes circulating due to cash transactions.
Gwata said there was an increase in robberies, theft and fraud, which served
to highlight the need for business and the public to revert to using the
banking system and plastic money.
“If there is a country in the world whose payments system need to go totally
electronic, it is Zimbabwe,” Gwata said. “We are using a currency that is
not ours, it is expensive to import, we have no change, there is a high risk
of fake as well as soiled notes, risk of robbery and theft is on the
increase. In the retail network customers are losing their hard-earned money
through getting pieces of paper for change or worse sweets for change.”

Paul Nyakazeya

Govt must not interfere with judiciary: Makarau

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:14

SUPREME Court judge, Justice Rita Makarau, has said government should make
the judiciary more independent by involving parliament in the selection of
judges.
Justice Makarau, who was elevated in May to the Supreme Court bench from the
post of Judge President, told the Zimbabwe Independent this week that
government should create a panel of judges with varied law backgrounds for
the Supreme Court which also operates as the Court of Appeal.
Currently, the president appoints judges after consultation with the
Judiciary Services Commission and according to Amendment No 19 is supposed
to consult Prime Minister Morgan Tsvangirai, which he did not do when he
appointed five judges in May.
The unilateral appointments of judges, together with the recent
re-appointment of provincial governors, appointment of ambassadors, the
Attorney-General Johannes Tomana and Governor of the Reserve Bank Gideon
Gono, has angered Tsvangirai, who has since declared them unconstitutional,
null and void.
“We probably need to have a panel of judges with varied backgrounds in
experience such as businesspersons, media practitioners and so forth,”
Makarau said. “This would make it easier to handle special issues. There are
so many variations which could be used to appoint judges, among them, the
confirmation of appointees by parliament. So long as this is not abused for
political reasons it is the right way to go.”
Makarau accused government of interfering with the judiciary by enacting
laws in parliament that counter court rulings which are not favourable to
the state.
“It is disheartening if you make a decision in court and parliament changes
the law. The judiciary should be accountable to the citizens. We have
unfortunate incidents where parliament changed the law when we had given an
unfavourable decision against the government. This makes the whole exercise
academic as the complainants do not get the relief sought,” Makarau said.
The judge gave examples, which included the constitutionality of prolonged
stay of prison inmates on death row and the legality of the land reform
programme embarked on in 2000.
“Parliament was used to change the law after the courts had ruled that the
prolonged stay of inmates on death row was a violation of human rights. This
was also replicated in cases surrounding the land reform programme on cases
brought forward by members of the Commercial Farmers Union (CFU) who
challenged the process,” she said.
“This development is against the principle of separation of powers between
the three arms of the state. The judiciary should be accountable to the
citizens when it makes decisions.”
In a landmark decision on December 21 2000, the full Supreme Court bench
headed by the then Chief Justice Anthony Gubbay ordered that farm invaders
be removed from the farms they had occupied and that government should
produce a workable land reform programmme in addition to the restoration of
the rule of law on all commercial farms. This essentially required the
removal of all unlawful invaders from commercial farms and the prevention of
further invasions.
However, Statutory Instrument 338 of 2001 amended the Land Acquisition Act
to give government full rights on the land when an acquisition order was
issued, including the rights to survey, demarcate and allocate land for
resettlement.
A provision was included in the Act to make it an offence for an owner or
occupier of the land to interfere with the process arising from effective
occupation.

Paidamoyo Muzulu

Anti-graft officers probed for corruption

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:13

POLICE are investigating three officers of the Anti-Corruption Commission
for allegedly protecting former ZBC finance director Oniyas Gumbo, who
stands accused of fraudulently attempting to wrestle control of a Harare
property company, Assetfin Pvt (Ltd).
Sources in the police told the Zimbabwe Independent this week that a docket
to probe Charles Charuma, Antony Mahwamba and Isaac Takawira had been opened
by the police after an Assetfin director, Paul Chidawanyika, accused the
three anti-graft officials of abusing public office.
The sources said the police had since written to the commission asking
Charuma, Mahwamba and Takawira to give their warned and cautioned statement.
The trio, were at the time of going to press, yet to have recorded their
warned and cautioned statements.
“The three officials are under probe,” a senior police officer said. “We are
treating the matter seriously in view that they have not been cooperative.”
Police spokesperson Wayne Bvudzijena could not be reached for comment at the
time of going to press last night.
The accusations by Assetfin came at a time when the term of office of
current commissioners had ended, amid concerns that the commission had done
little to curb vice. Senior officials at the commission are reportedly
involved in shady deals and blocking investigations.
In a scathing letter dated August 26 to the outgoing commission chairperson
Eric Harid, Chidawanyika alleged that the three officials were blocking the
commission from probing Gumbo for alleged fraud and forgery when he tried to
seize the property firm in 2007.
Chidawanyika and Antony Parehwa, current Assetfin directors, are embroiled
in a bitter ownership wrangle over the company that has also seen top cops
accused of fighting in Gumbo’s corner. Parehwa and Chidawanyika own 50% of
Assetfin through their company Unitime Investments Pvt (Ltd), while the
remainder is owned by Gumbo.
Gumbo allegedly forged a CR14 form and submitted it to the Registrar of
Companies on June 27 2007 purporting that he owned 100% Assetfin. He is
currently facing a criminal trial over the matter at the Harare Magistrates’
Courts.
Chidawanyika said the three officers were aware that his company had made a
corruption report against Gumbo in March 2010 to the commission and that
affidavits were proffered by witnesses.
“This case against Oniyas Gumbo has gone nowhere, but has been suppressed or
interfered with,” wrote Chidawanyika. “The issue to be resolved by the
Anti-Corruption  Commission and other law enforcement agents is CR14 form
(copy attached), forged by Oniyas Gumbo and delivered to the Registrar of
Companies… Criminals should not be allowed to abuse the office of the
Registrar of Deeds and Companies because such office is the custodian of the
property rights of the country.”
Chidawanyika said Charuma, Mahwamba and Takawira were aware that Gumbo had
made misrepresentation and had committed fraud and forgery in a bid to
assume 100% ownership of Assetfin.
“They (officers) have upheld this CR14 form in an attempt to present it as a
genuine document, thereby, favouring Oniyas Gumbo,” he alleged in the
letter. “They have also not taken into consideration affidavits by the
witnesses, which confirm crimes committed by Oniyas Gumbo.  If these
affidavits had been taken into consideration, Oniyas Gumbo’s crimes would
have been exposed before the arrest of Willie Mushayi (deputy registrar of
companies).”
Chidawanyika added: “It appears there is a clear criminal abuse of duty or
obstruction of the course of justice and corruption by them as public
officers.”
He also wrote to the police saying the Anti-Corruption Commission officers
contravened the Criminal Law (Codification and Reform) Act (Chapter 9:23)
because they failed to carry out their duties as public officers.

I will contest 2011 elections –– Dabengwa

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:12

ZAPU president Dumiso Dabengwa says he will challenge President Robert
Mugabe and Prime Minister Morgan Tsvangirai in possible mid-2011 elections
and is optimistic of romping to victory.
The former Zanu PF politburo member, Dabengwa told the Zimbabwe Independent
yesterday that he would contest for the presidency while his party would
field candidates in all constituencies.
He said indications by Mugabe that Zimbabweans would go to the polls next
year was a wake-up call to Zapu to start preparations for the elections.
Last month, the 86-year-old leader told a Zanu PF youth assembly in the
capital that he wanted elections by mid next year to end the shaky inclusive
government he formed with political rival Tsvangirai in February 2009. A
referendum for a constitution is expected in March, followed by elections
before August next year.
Mugabe blames Tsvangirai for the political logjam in resolving the Global
Political Agreement (GPA) sticking points while the premier accuses the
president of violating the pact by making unilateral appointments of senior
officials.
Dabengwa said an election was the only solution to end the political
stalemate created by Mugabe and Tsvangirai and allow Zimbabweans to choose
the next government.
“We are ready to face Zanu PF and any other party because a six months
notice is a reasonable period for a serious party to prepare for polls,”
said the former Home Affairs minister.
Dabengwa led the revival of Zapu after pulling out from the December 22 1987
Unity Accord that was signed between PF-Zapu and Zanu PF, accusing Mugabe
and his allies of marginalising the Matabeleland region.
The former Zipra intelligence supremo was elected Zapu president at the
party’s inaugural congress in September.
Analysts say Zapu can grab a number of parliamentary seats, mostly in
Matabeleland where MDC-T has dominated in polls in the past decade.
Following the revival of Zapu, Zanu PF members left in droves to join the
party.
Dabengwa said his party was an option to many Zimbabweans who were fed up
with MDC-T and Zanu PF’s “confusion and fighting” that has seen the GPA
outstanding issues dragging on for two years.
“We are moving in circles; our colleagues in the inclusive government have
failed to implement the GPA and the only solution is fresh elections,” he
said.

Brian Chitemba

Mixed feelings over PM’s legal threat

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:11

WHILE Prime Minister Morgan Tsvangirai might be applauded by Zimbabweans for
considering taking President Robert Mugabe to the constitutional court for
making unilateral appointments, which he has described as “unconstitutional,
null and void”, constitutional lawyers say the solution to the political
impasse is more political than legal.
The lawyers interviewed by the Zimbabwe Independent, however, differed on
whether there are any legal remedies to Mugabe’s unilateral appointments
with some arguing that the courts cannot question decisions made by the
president and others opposing this school of thought saying Amendment No 19
overrides any laws in the constitution that were inconsistent with the
Global Political Agreement and provisions of the amendment that created the
inclusive government.
In a letter to Sadc facilitator, South African President Jacob Zuma dated
October 7, Tsvangirai said his party was considering taking Mugabe to court
over the “illegal” appointments.
MDC-T sources said the party was seriously thinking about challenging Mugabe
in the Supreme Court over the unilateral re-appointments of provincial
governors and appointments of judges, ambassadors, the Attorney-General and
Governor of the Reserve Bank without consulting Tsvangirai.
The letter to Zuma read: “I am extremely concerned about President Robert
Mugabe’s and his party’s lack of commitment either to the GPA, to the Sadc
resolutions or the constitution and laws of Zimbabwe. I have now resolved
not to recognise any of the illegal appointments made by President Mugabe.”
The letter went on to say: ‘This applies to a significant number of
government positions, including a member of the cabinet (the
Attorney-General), 10 governors and senators, five senior judges of the
Supreme and High Courts, and six ambassadors (including South Africa).
My party will also consider taking legal action on these matters, which will
bring into stark light the constitutional crisis which we now face.”
However, the lawyers, who believe that it might be a waste of time to take
Mugabe to court, pointed to Section 31 (K) of the constitution, which they
said did not allow the courts to enquire into how the president exercises
his discretion.
These lawyers said the section was neither repealed nor amended by
Constitution Amendment No 19 and could therefore not be superseded by an
agreement of political parties.
The section states that: “Where the President is required or permitted by
this Constitution or any other law to act on his own deliberate judgment, a
court shall not in any case inquire into any of the following questions or
matters –– (a) whether any advice or recommendation was tendered to the
President or acted on by him; or (b) whether any consultation took place in
connection with the performance of the act; or (c) the nature of any advice
or recommendation tendered to the President; (d) the manner in which the
President has exercised his discretion.”
It goes on to say where the president is required or permitted by the
constitution or any other law to act on the advice or recommendation of or
after consultation with any person or authority, a court shall also not, in
any case, inquire into the nature of any advice or recommendation tendered
to the president.
The courts, the constitution says, will also not ask the manner in which the
president has exercised his discretion after the consultation.
Constitutional lawyer Lovemore Madhuku said: “Amendment No 19 is not a new
constitution. It is just an amendment of certain sections in the
constitution, it doesn’t override the whole constitution.
“Amendment No 19 has nothing to do with Section 31 (K). It only changes a
few aspects of the constitution. He cannot be taken to court. Read Amendment
No 19 and follow the sections that were changed. It only changed some
sections.”
Madhuku maintained that the solution remains a political one to the
political impasse, which has seen the once good relations between Mugabe and
Tsvangirai break down after the president unilaterally re-appointed the 10
provincial governors, which outraged the premier. Tsvangirai has since the
appointments boycotted two cabinet meetings and the principals have not had
their regular Monday meetings.
However, Advocate Eric Matinenga, who spoke in his personal capacity,
differed saying he belonged to the second school of thought who believe that
Amendment No 19 and the GPA override sections, such as 31K, as long as the
government of national unity is in existence.
Matinenga pointed out that: “If you look at this position now, this
particular Section (31 K) is now overridden by what Amendment No 19 says.
Section 31 (K) would only make sense without Amendment No 19. So what the
president has done is that he has operated outside the constitution,” he
said.
“Look, what he has done is contrary to Amendment No 19, therefore contrary
to the constitution. Whatever one may say, Section 31 (K) is now
inconsistent to Amendment No 19. What has actually happened is that instead
of going to every section of the constitution, sections that are
inconsistent to Amendment No 19 are now of no effect as long as the GNU
still exists.”
Another legal expert with the Media Institute of Southern Africa (Misa-Zim)
Farai Nhende
concurred, saying amendment 19 superseded the constitution.
“In this respect I am guided by the wording under schedule 8 which provides
for transitional amendments and provisions. It is not the GPA that
supersedes any provisions to the contrary but particular provisions clearly
stipulated under Article XX of the Amendment.”
Schedule 8 states that: “For the avoidance of doubt, the following
provisions of the Interparty Political Agreement, being Article XX thereof,
shall, during the subsistence of the Interparty Political Agreement, prevail
notwithstanding anything to the contrary in this Constitution.”
“The import of this statement in my view succinctly deals with the questions
at hand. It makes it clear that while the Amendment 19 remains in force it
shall take precedence over any other constitutional provision inconsistent
thereto,” said Nhende.
“There can also be no doubt that the enactment of this amendment into law
was to give it legal force, which effectively meant that its provisions
could amend certain sections of the constitution; had this not been the
intention then it would have just sufficed to leave the document aptly
termed the GPA without legislating it.”
Article XX of the GPA deals with the framework of a new government, which
states that “the executive authority of the inclusive government shall
invest in and be shared among the President, the Prime Minister and the
cabinet, as provided for in this constitution and legislation.” It also
states that: the president “in consultation with the Prime Minister, makes
key appointments…”
Matinenga pointed out that: “all parties in the agreement are expected to
conduct themselves in high moral ground, working together in the inclusive
government and that there should be willingness to compromise.”

Faith Zaba

Shoot to kill policy should be revised — Experts

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:02

THE police shoot to kill policy is ill-conceived and should be revised
because there are laws to deal with criminals rather than allow the law
enforcement agents to gun-down citizens, security experts have said.

While police say they adopted the strategy to weed out dangerous armed
robbers mainly in Bulawayo and Harare, the policy has seen innocent
civilians losing lives.
Two months ago, Bulawayo police fatally shot Fletcher Tavengwa and injured
his friend Lewis Sanyanga whom they suspected to be armed robbers. Three
weeks after that incident they shot and killed state security agent Trymore
Khosa at a Chicken Inn outlet.
The Khosa killing sparked bad relations between the police and the Central
Intelligence Organisation while residents criticised the police for slaying
Tavengwa.
Police have also shot dead several armed robbers although armed robbery
cases remain rampant, with businesspeople continuing to lose huge amounts of
cash as well as goods.
Security experts say the shoot to kill policy is normally adopted either in
a war-torn country or where outlaws like drug trafficking lords do not
hesitate to fight back the police.
Last month, police Commissioner-General Augustine Chihuri said they would
kill suspected armed robbers. He was reacting to an incident in Bulawayo
where armed robbers shot dead a top cop Lawrence Chatikobo.
Police sources in Bulawayo told the Zimbabwe Independent this week that
Chatikobo was allegedly killed in a revenge mission by a gang sympathetic to
the tragic death of Tavengwa and Khosa.
Former Home Affairs mnister Dumiso Dabengwa suggested that police adopt a
shoot to disarm policy rather than killing people
He warned that armed robbers could not be treated with kids’ gloves but
killing the criminals who did not refuse to surrender their firearms was
wrong.
“Police must shoot the armed robbers in the leg or arms to disarm or disable
them. It’s not right to kill because it gives a perception that there is no
respect for human life,” said Dabengwa.
He said the police should apologise for killing innocent civilians who were
not a threat to the society.
Former police commander in Harare and Masvingo, Emmanuel Chimwanda, said the
shoot to kill policy was not favourable in Zimbabwe where a peaceful
environment is prevailing. He accused the police of recklessness that has
resulted in the death of innocent citizens.
“The shoot to kill strategy can be entertained in a state which is in a
 war,” Chimwanda said. “That policy is good for countries like Colombia and
Somalia where statistics show that police have been attacked,” he said . “We
have laws to deal with criminals in Zimbabwe, that’s why we don’t need
police shooting citizens unless or if they are under attack.”
But police spokesman Andrew Phiri defended the strategy saying the police
would use maximum force to deal with armed robbers.
“We are doing all we can to protect the lives of citizens,” he said.
After the death of Chatikobo, Chihuri said: “The ZRP will not stand akimbo
and watch innocent citizens of this country, let alone police officers,
being decimated by uncouth criminals. To this end, all unscrupulous
elements, be they armed robbers, carjackers and others of that ilk, should
be warned that the ZRP shall not hesitate to shoot to kill any such persons.
Those who live by the sword will die by the sword.”
Chimwanda, however, said it was necessary for the police to ensure they are
targeting the right suspects before firing guns.
Rape and robbery cases, he said, did not require the police to kill the
suspects but in cases where the law enforcement agents needed to protect the
public from notorious gangs’ attacks.
Chimwanda said the question on many minds is why the police are shooting
innocent civilians instead of dealing with dangerous criminals roaming the
streets.
He said the policy should be revoked before many fall victim to the
“ill-conceived” strategy. Only a few people own firearms due to the
stringent laws that allow Zimbabweans to obtain guns.
Police have asked residents to surrender unlicensed and malfunctioning guns
to police stations while those with licensed guns have to report them to the
police who claim to be compiling a new database of firearms in the public
domain.
In Bulawayo, heavily armed police are patrolling the streets to fight the
armed robbers but residents complain of harassment and victimisation. Police
declared an unofficial curfew in Bulawayo following the killing of Chatikobo
by suspected armed robbers at a nightspot.
“Police should use minimum force to deal with citizens and let the law take
its course rather than go on a mission of killing Zimbabweans,” said
Chimwanda, who was dismissed by Chihuri in September 2002 under unclear
circumstances.
Like South Africa, Zimbabwe has become a haven of violent crime since the
introduction of multi-currencies in February last year. A week hardly passes
without an incident of armed robbery in major cities targeting banks as well
as top businessmen.
Some of the prominent robbery cases include Barclays Bank heist in Bulawayo
last year after robbers got away with US$50 000, R126 000 and 500 pounds,
and Kingdom Bank robbery in Graniteside in  Harare where they stole US$10
200.

Brian Chitemba

Mat water woes smokescreen for de-industrialisation

http://www.theindependent.co.zw

Thursday, 04 November 2010 18:55

PERENNIAL water woes in Matabeleland have been used as a smokescreen by
unscrupulous businesspeople from other regions to deliberately
de-industrialise the area, analysts said, accusing some people of buying
companies in the region and stripping them off before relocating to other
cities.

Bulawayo, once the hub of economic activity in the southern half of the
country, has battled with perennial water problems for more than two
decades.
Most companies mainly in the manufacturing and construction industries,
which occupied the once vibrant Belmont Industrial zone, have been forced to
either retrench workers or scale down operations because of the crippling
water shortage in the city. Industrialists say companies here are operating
below 40% of their capacity.
A survey by the Zimbabwe Independent found that although the city was losing
investment opportunities because of other economic problems, water shortages
were the main reason why investors continue to shun the city as an
investment destination.
However, local businesses now feel that there could be sinister motives in
the closure of some firms.
Although water problems, the liquidity crunch and erratic supply of
electricity were not peculiar to Bulawayo, they believe that water shortage
was now being used by business and unscrupulous people from other regions to
scare away investors.
These sentiments have been expressed in several meetings by businesses who
feel that cities, such as Harare and Kadoma, where firms relocate to, also
face water problems.
Nqobizitha Sibanda, Zimbabwe National Chamber of Commerce regional president
on Monday said the water crisis is no longer a valid reason for continued
relocation of firms.
“The water situation  is not an issue anymore… we have seen a worrying trend
in which people from Harare are coming to Bulawayo, buy companies only to
close them and relocate after stripping machinery. They all cite the water
issue,” he said.
Sibanda said he has been to other areas where companies relocate to which
“are far worse than Bulawayo in terms of water reliability”.
“But after relocating they would continue to supply their products here as
they cannot ignore this regional market. We will carry out a comprehensive
study on this issue as we feel it’s deeper than what is being said,” Sibanda
said.
Government, industrialists, politicians and the local municipality agree
that the solution to the water crisis hinges on the construction of the
National Matabeleland Zambezi Water Project pipeline (NMZWP).
Analysts say judging by lack of progress so far, it is highly unlikely that
the project will ever be completed.
Speaking during a stakeholder’s water conference last Friday in Bulawayo,
Prime Minister Morgan Tsvangirai assured participants that government was
committed to the project.
“You have my word, government is committed to this multi-million dollar
project…on funds we have to be creative, as government we need to remove the
risks for those with money to come in and invest.  It would (project) remain
a pipe dream if the risk persists,” said Tsvangirai.
Industrialist Alfred Moyo said it is now apparent that the water issue was a
strategy by some people to disinvest or chase away investors from Bulawayo.
Water shortages in Bulawayo are now a perfect marketing tool that is
employed by crafty business people from other regions to block investment to
the city.  So you have a situation whereby greedy business people tell
investors that Bulawayo is not a viable business
destination,” said Moyo.
He said what is puzzling is that areas where companies are relocating to
also face water challenges which are even worse, said Moyo, giving Harare as
example.
Moyo said the objective is to concentrate businesses in one area to create
an impression to foreign investors that their regions are investor-friendly.
“The water issue has now been over-played to the extent that it now raises
eyebrows.  Many companies left the city but others of similar magnitude
emerged. Therefore I am personally of the view that it was all political to
cite water.”
“The Zambezi pipeline is now further used by unscrupulous business people to
scare away investors from the city to the benefit of other regions,” said
Moyo.
He said government was also an accomplice to this as evidenced by its
reluctance to allocate financial resources for capital projects that would
bring investment to the region.
Joshua Mqabuko Nkomo Airport, Nkayi-Bulawayo road and the state of
Beitbridge border post, said Bulawayo businesses, were examples of
government not showing commitment.
“There is no commitment on the part of government to have the pipeline in
place as there is a lot of bickering with people attempting to gain
political mileage from the project,” he added.
But Tsvangirai told participants that “no one should try to make political
capital from the desperation of the people of this region”.
Chief Executive officer for the Association for Business in Zimbabwe (ABUZ),
Lucky Mlilo also said water was now a convenient excuse to disinvest but
there is a deliberate ploy to destroy industries in the region due to red
tape.
“Bulawayo is not the only place faced with water problems. A situation has
been created to make it difficult to access lines of credit from this end
due to red tape and local investors end up deciding to set up base in
Harare,” said Mlilo.
He said there is need for decentralisation.
While economist Eric Bloch said the project has always been marred by a
misconception that it would only benefit Bulawayo residents, hence its
continued false starts.
“The reality is the Zambezi water project can be more exciting and of more
economic benefit like the Chiadzwa diamonds fields,” he said.
“Zimbabwe could become the fifth strongest economy in Africa out of 51
countries within six years of the project’s completion and use the benefits
of it to initiate other projects in the country.
“Once completed the project would help re-establish Bulawayo as the country’s
industrial hub,” said Bloch.
The project mooted in 1912, has had false starts as successive governments’
have been citing lack of funds.
State Enterprises and Parastatals minister Gorden Moyo said other areas
outside Matabeleland region have long benefited from resources extracted in
the region and money generated from the Marange diamonds funds should be
used to bankroll the project.
“There are resources in this region that have been extracted to develop
other regions. Those regions should now plough back into Matabeleland.
Resources from the Chiadzwa should also be used to make this dream become a
reality,” said Moyo.

Nqobile Bhebhe

Mauritian firm wins bid for Zisco

http://www.theindependent.co.zw

Thursday, 04 November 2010 18:54

A MAURITIUS-based firm, Essar Energy Holdings, has won the bid to acquire a
60% stake in Zimbabwe Iron and Steel Company (Zisco), businessdigest can
reveal.
Essar Energy Holdings was chosen ahead of Sino Zimbabwe Ltd, Jindhal Steel
of India and Sovereign Capitala, a consortium of local and South African
investors.
ArcelorMittal South Africa is said to have pulled out of the bidding race
last month.
Sources close to the deal told businessdigest this week that Essar Energy
Holdings had won the bid to have a controlling stake in Ziscosteel.
“The three principals (President Robert Mugabe, Prime Minister Morgan
Tsvangirai and Arthur Mutambara) have settled for Essar (Energy Holdings).
The Mauritian based company is expected to invest more than US$60 million to
revive Ziscosteel,” an impeccable source said on Tuesday. “An official
announcement should be made next week if all goes according to plans. The
company was chosen ahead of Sino Zimbabwe and Jindal Steel.”
Essar Energy Holdings Ltd operates as a holding company which through its
subsidiaries engages in exploration and production, refining and retailing
of petroleum products. Essar Energy Holdings Ltd operates as a subsidiary of
Essar Global Ltd.
The company is reported to have a market capitalisation of US$10 billion and
is said to be planning a listing on the London Stock Exchange.
Ziscosteel is the largest steel works in the country. Over the years the
company has faced many operational problems and has been dogged by countless
corruption scandals.
As of early 2008, the company was producing less than 12 500 tonnes, way
below the break-even capacity of 25 000 tonnes. It is wholly owned by
government.
Zisco stopped operations after succumbing to serious financial limitations,
which had pushed the firm into selling scrap metal accumulated over 40 years
to survive before finally going down on its knees.
Last week in parliament, Industry minister Welshman Ncube said the sale of
Ziscosteel would be concluded by end of November if the principals ––
Mugabe, Tsvangirai and Mutambara — select a partner from among the three
potential investors shortlisted by his ministry to buy the 60% stake in the
company. Ncube could not be reached for comment yesterday.
Zisco has two major debts, one to a Chinese bank that was due and has been
renegotiated to be paid by end of 2011. The other debt involves US$240
million from a German bank.
Any new investor had to make a commitment to liquidate this debt which has
caused some government properties in Botswana and South Africa to be
attached.
The investor has to put in US$65 million for refurbishment of blast furnaces
four and three and the coke oven. In addition to all this, the investor
should also be in position to pay for government shares when government
divests.
Two weeks ago businessman Philip Chiyangwa was reported to have written to
Mugabe asking him to consider his company to buy the Zisco stake but
analysts say he has no capacity to get the steel maker running again.

Paul Nyakazeya

Political uncertainty threatens 2011 budget

http://www.theindependent.co.zw

Thursday, 04 November 2010 18:49

THE World Bank (WB) has warned that political uncertainty surrounding the
coalition government could undermine Finance minister Tendai Biti’s plans to
craft a budget statement highly expected to map out Zimbabwe’s economic
recovery.
Nginya Mungai Lenneiye, WB country representative on Monday told delegates
attending a budget consultative meeting between government and development
partners that treasury could face  problems in writing a fiscal policy
statement.
Biti  is later this month expected to announce a US$2 billion  budget and a
6,4% GDP growth as government continues to operate under a narrow fiscal
space due to lack of significant lines of credit from multilateral lenders
and limited foreign direct investment.
“In drawing the 2011 budget, the  Finance ministry continues to be faced by
two types of challenges,” Lenneiye said. “First those that lie outside
budget instruments like limitations associated with political reforms and
low implementation capacities in government. Secondly, those that the budget
can address — for example — reducing opportunities for arbitrage in the
economy, tackling unemployment through economic growth, supporting the
recovery of human capacity, and improving budget management.”
The coalition government formed last February has failed to implement a
power-sharing agreement signed in September 2008. The Global Political
Agreement between President Robert Mugabe and his long-time rival Morgan
Tsvangirai and leader of the smaller MDC party Arthur Mutambara is
reportedly on the rocks over sharp ideological differences.
Zimbabwe — currently saddled with a US$6,7 billion  external debt — will
according to the Bretton Woods institution continue to receive support in
the form of “Analytical and Advisory Activities”.
The technical support is primarily financed using both resources from
various donors working under an Analytical Multi-Donor Trust Fund (A-MDTF),
as well as from the World Bank’s own resources.
“A total of US$5 million is expected to be made available by development
partners for the A-MDTF to support knowledge generation, sharing  and
application, as well as responding  to government needs for technical
assistance. In addition, the bank will continue to mobilise funding from
internal resources,   provide modest grants at the moment estimated at
US$23,6 million, for identified project interventions,” Lenneiye said.
Out of this grant, the health delivery system will receive US$15 million;
agriculture US$4,9 million; Beitbridge Town Council water and sanitation
rehabilitation US$2,7 million and piloting public works in safety net
interventions US$1 million.
Apart from the huge debt overhang, Zimbabwe has failed to rehabilitate
dilapidated infrastructure owing to poor performance of the vote of credit.
Official figures show that up to US$250 million was received from the US$810
vote of credit pledged by donors this year.
Biti blamed “lack of clarity or general agreement between government and
donors” for the poor performance of the vote.

Bernard Mpofu

Tobacco sales reach 123m kgs

http://www.theindependent.co.zw

Thursday, 04 November 2010 18:48

AN extra 4,4 million kgs of tobacco was sold during mop-up sales which ended
on October 21, figures released by the Tobacco Industry and Marketing Board
(TIMB) showed this week.
The selling season officially ended on September 3 with an output of 119
million kgs.
“The extra 4,4 million kg were sold through mop up sales which were carried
out at various selling points up to October 21,” said TIMB.
According to the figures released on Tuesday, a record crop of 123,4 million
kgs was sold at the just ended tobacco selling season after the mop up
sales. This year’s production is 110% more than last year’s production of 56
million kgs.
“The increase in tobacco output was attributed to an increase in small scale
growers that constituted 80% of the total registered growers,” TIMB said.
“Mashonaland West province had the highest production in the  2010 marketing
season followed by Mashonaland Central. However, about 11 000 small scale
(A1 + Communal) growers in Mashonaland Central produced more than 16 million
kgs, were as close to 12 000 small scale growers in Mashonaland West
produced slightly above 15 million kgs. This means that small scale growers
in Mashonaland Central had a better yield.”
TIMB said the number of tobacco growers had increased over the last decade
from of  8 500  (average  10  hectares  each)  to  over  51  000  growers
(average 1,3 hectares each), of whom about 42 000 (80%) were small-scale (A1
and communal area) growers.
Virginia tobacco was grown on a total of 67 054 hectares, yielding an
average of I 839 kgs per hectare.
“A better yield has been attained this year as a result of  good rains which
prevailed in 2010 and aided by timeous availability of inputs,” TIMB said.
During the just ended selling season, merchants offered favourable prices at
the beginning of the season and later reduced their prices after eight weeks
of sales.
When deliveries continued to swell beyond the initial projections of 77
million kgs, prices further dropped from the highest average price of
US$3,49/kg to US$2,62/kg recorded at auction floors.
The season ended at an average price of US$2,88/kg, 10 cents below the 2009
average price.
“The highest price which was paid for good grades during the 2010 season was
US$4,96/kg. The lowest price was 0,10 cents per kg which does not change
every year for tobacco fines,” said TIMB.
The record annual average price of US$3,21/kg achieved in 2008 still stands.
Depressed prices realised towards the end of the 2010 season was attributed
to market forces of demand and supply. The lowest average price was offered
in 2005, US$1,61/kg.
“The average price for the 2011 season may also drop slightly as a result of
increased production world over, due to a predicted surplus output and an 8%
decrease in demand of cigarettes in western Europe,” said TIMB.
Last week, the Agricultural Development Bank of Zimbabwe  and FBC Bank Ltd
floated Tobacco Bills worth US$10 million to support tobacco farmers for the
2010/11 season.
Agribank says the money raised will be channeled towards mobilising
financial support for tobacco farmers for the growing, curing and
transportation of the crop to auction floors next year.

Paul Nyakazeya

Banks oppose indigenisation policy

http://www.theindependent.co.zw

Thursday, 04 November 2010 18:47

FIVE out of six banks which made submissions to a government committee on
indigenisation policy have  opposed the mandatory threshold required to
dispose controlling interest to black Zimbabweans, the businessdigest has
learnt.

This follows a rejection on proposals made by the Bankers Association of
Zimbabwe (Baz) to the Financial Services Sectoral Committee tasked with
advising government on the empowerment modus operandi.
The Baz submitted that the sector was already indigenised arguing that 85%
of banks were owned by locals. Eight foreign-controlled banks — Standard
Chartered, Barclays, Stanbic, MBCA, Cabs, Premier, Metropolitan and BancABC—
are targeted for the black empowerment drive. They are part of the 25
operating banking institutions in the country, comprising 15 commercial
banks, five merchant banks, four building societies and one savings bank.
This week businessdigest looks at proposals made by the six banking
institutions — Metropolitan, Premier, Stanbic, Stanchart, MBCA and ZABG.
Metropolitan
Metropolitan is a commercial bank registered in 1999. In July 2007, the
regulatory authorities approved the acquisition of a 60% stake in
Metropolitan by Loita Capital Partners International.  The acquisition by
Loita, according to the bank’s website, was aimed at bolstering its existing
service delivery capabilities, bringing both immediate and long term value
to its customers and shareholders.
The bank, according to a draft report compiled by the Financial Services
Sectoral Committee, advised the committee to use net asset value, discounted
cash floors and the Zimbabwe Stock Exchange market capitalisation as a
valuation method for the empowerment exercise. Metropolitan also opposed the
US$500 000 cap for banks, but instead said government should push the
threshold to US$25 million. The bank is also lobbying government to revise
downward to 40% from 51% shareholding that can be taken up by black
Zimbabweans in foreign-owned firms targeted for empowerment.
Metropolitan advised government to make it mandatory to list all banking
institutions operating in Zimbabwe.
Metropolitan also suggested that “only indigenous banks should mobilise
deposits from pensioners and civil servants”.
Premier Bank
Premier Bank in its submission said it wanted government to make valuations
based on the multiple of book value and multiple of retainable earnings. The
bank was, however, mum on the indigenisation threshold currently at US$500
000. With consistency among all regulatory bodies and ensuring that banks
are strong and uphold high standards of corporate governance, the bank
believes that indigenisation regulations can be effectively implemented
within five years.
On ownership, Premier said locals should have a minimum of 29% shareholding
and a maximum of 49%. The committee recommended a 40% cap on locals.

Stanbic
Stanbic Bank, a traditional foreign bank headquartered in South Africa, says
government should weigh banks based on share capital value as determined by
the Reserve Bank book value. The bank differs with the indigenisation
regulations in many ways. Firstly, it opposes the time limit saying the
compliance period should be 10 years instead of five years. Stanbic also
believes the indigenisation threshold should tally with central bank minimum
capital requirements. Commercial banks are currently expected to meet US$12,
5 million minimum capital requirements.
Standard Chartered
The United Kingdom-headquartered banking group is part of the top four banks
in Zimbabwe in terms of market share and assets. The bank proposed the use
of discounted cash floor analysis as a valuation method. Stanchart was
candid in its proposal. The bank said “banks be exempt(ed) from
indigenisation”.
Instead, it advised government to “use of a scorecard model where
organisations are allowed to meet their indigenisation obligations through a
mixture of elements”.  Seemingly aware that its proposal to spare banks from
the empowerment drive would hit a snag, Stanchart said locals should have a
maximum of 20% shareholding in foreign-owned companies.
The shareholding cap could be equity represented in management of such
companies (share option schemes) and highly skilled Zimbabweans.

MBCA
“Foreign banks should not be indigenised,” is what the bank advised
government. With at least 76% shareholding in the hands of foreign
investors, MBCA believes that the valuation method of the empowerment
exercise should be anchored on the book value of the company. On
indigenisation threshold, the bank said government should ensure the cap
should be three times the minimum capital requirement of each banking
category set by the Reserve Bank.
MBCA  also proposed the following:

    * The financial sector does not face any specific barriers or challenges
with regard to indigenisation as it is already 85% indigenised.

    * Financial sector to play a critical role in mobilisation of funds for
the indigenisation and empowerment programme.

The bank said government should consider investments in venture capital
companies and private equity funds as part of the prescribed assets for
financial institutions.
ZABG
Since the unbundling of the amalgamated banks that made up ZABG, the bank
was thrown into deep waters. ZABG advised government, its majority
shareholder, to apply the discounted cash floor method as a valuation method
for indigenisation. The banking group said foreign owned banks valued at
US$12,5 million should comply with the regulations. ZABG also toes the
government line which compels foreign-owned companies to dispose 51%
interest to black Zimbabweans.  Government, according to the bank’s
proposals, should equally distribute business among the indigenous banks, a
position reportedly held by the Baz.

Bernard Mpofu

Muckraker:Charumbira must have been joking

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:00

IT is nice to open this week’s column with a joke. Our thanks to Chief
Fortune Charumbira for the following: “The president should remain in power
to ensure Zimbabwe became prosperous again.”
That comes under the heading: “He must be joking.”
And it invites the obvious remark which we hope will be asked of every Zanu
PF candidate in any forthcoming poll: “Just how do you think President
Mugabe can achieve in the next five years what he has failed to achieve in
the past 10?”
Please Chief Charumbira, exactly how will this miracle be achieved?

Perhaps Emmerson Mnangagwa has some idea. He has emerged from a long
hibernation to provide this gem of analysis: “The West imposed illegal
economic sanctions on Zimbabwe so that Zimbabweans would revolt against the
Zanu PF government,” he claimed.
The MDC was changing goalposts on the new constitution having “realised”
that they were “defeated by Zanu PF”, he told his rural audience.
So the MDC which won a majority of seats in 2008 has “realised” that Zanu PF
really won after all. When did this epiphany occur?
It is always rather sad to see an intelligent man talking absolute nonsense
because that is what is required of him.
“The price we paid for this country to be independent was just too high,”
Mnangagwa said. “We can’t fail those departed comrades who shed their blood
to see a prosperous Zimbabwe.”
Where is all that prosperity? Can anybody see it apart from him? There are
admittedly a few mansions in Borrowdale. Newspapers recently showed one
built by Zimbabwe Mining Development Corporation boss Dominic Mubayiwa. Is
that the prosperity Mnangagwa means?
Muckraker recalls a song by Marilyn Monroe: “Diamonds are a chef’s best
friend.”
It will be interesting after Mnangagwa has finished spouting daft comments
about neo-colonialists to see whether he is able to keep the military in
their barracks when the next poll is held. That will be the test of his true
worth.

On the lighter side, the Sunday Mail is obviously keen to compete with a
paper from its own stable. It carried the following front-page heading:
“71-year-old grandpa impregnates granddaughter.”
Shouldn’t that be in H-Metro? Or has the Sunday Mail decided the only way to
go is downmarket?

We are following with interest the struggle between Mayor Muchadeyi Masunda
and Minister Ignatius Chombo over the 4 000 ghost workers council wants to
get rid of.
Chombo on the other hand is playing the populist card by saying the
 “workers” should stay.
“These workers have been in council so long,” Chombo says. “They cannot be
dismissed now. Those were loose comments from the mayor.”
So workers who should have been fired years ago should in fact stay because
they have been there so long? That is Zanu PF logic!
Chombo goes further to ask how you distinguish ghost workers from other
workers?
That’s easy. The ghost workers are lying down. Masunda is correct in
describing the council as “a breeding ground” where people are getting
employment without any qualification.
Muckraker recalls a huge recruitment campaign ahead of the 2000 election.
Zanu PF was busy infiltrating its followers whether they were qualified or
not. They were well represented in the Harare Municipal Workers Union, a
jongwe outfit.
Now they want to continue their comfortable life despite doing little or
nothing to deserve it. Just take a look around the city. Rubbish everywhere.
Not a municipal worker in sight.
This can partly be blamed on the absence of a culture of supervision and
maintenance.
But it can largely be laid at the door of Zanu PF officials like Chombo who
interfere in municipal business in order to attract votes.
Masunda must stand up to this damaging meddling. He needs to say two words
to Chombo, one involving sex and the other travel.

The same advice should be tendered to Phillip Chiyangwa. The mayor may think
he is being magnanimous in “letting bygones be bygones”. But in fact he is
compounding municipal misrule.
It is the duty of the Harare city council to uphold the interests of
residents and ratepayers. This has nothing to do with “seeking vengeance” as
Masunda fatuously suggests and everything to do with doing the right thing.
Does that elementary principle have to be spelt out for the mayor?
Thank goodness for Councillor Warship Dumba and his colleagues who
understand perfectly where their duty lies. And that doesn’t include letting
Chombo off the legal hook.

Perhaps the most disgraceful example of wilful misgovernance came last
weekend from Media minister Webster Shamu. He ignored the seriousness of
remarks by Zanu PF activists during the recent outreach programme that
journalists and cartoonists who portray President Mugabe in poor light
should be hanged.
Asked about this delinquency, Shamu said people were allowed to say whatever
they wanted in the new constitution.
“Why would you want me to comment on issues they suggested?”
Because it is the right thing to do Minister, and you should know that.
Any government official in a civilised society would immediately say “those
remarks do not represent my party or government”. But Shamu couldn’t bring
himself to denounce this disgraceful attack on journalists. It seemed all OK
with him.
At least Douglas Mwonzora understood the danger of allowing this hate speech
to find purchase in the new constitution.
The people giving this “evidence” to the outreach programme were no doubt
coached.
Their remarks in Mbare, Budiriro, Mazowe, and Murehwa were identical in
phraseology.
Nobody says that sort of thing spontaneously.
We hope Zanu PF’s Rwandan-style politics will receive a wide circulation so
the rest of the world can see what Zimbabwe’s media fraternity have to deal
with.

The suspiciously nutty professor Arthur Mutambara was at it again last week
at a public policy dialogue meeting. He audaciously claimed that the MDC-T
was now enjoying the trappings of power and was therefore not interested in
the elections next year.
Said Mutambara: “MDC-T is not confident on an election. I am just coming
from parliament (where) ministers, who will remain nameless, were begging
Welshman (Ncube), were begging me saying: ‘What can we do? We can’t have
this election’.
“They were saying: ‘Can you go and talk to this old man (President Mugabe)?’”
MDC-T ministers, when they appear on TV, say ‘we are ready’. Tendai Biti,
Chamisa are enjoying ruling. Do you think they want to go home next year?
You are lying.”
It is common knowledge that Mutambara is one of the biggest beneficiaries of
the GNU after being roundly trounced in Zengeza West in Chitungwiza during
the 2008 elections. He and his colleagues in the MDC-M have the GNU to thank
for their current positions. However, instead of trying to endear himself
with voters by justifying his position, Mutambara has been putting his foot
in his mouth, particularly when he sees the camera is on him.

From waxing lyrical about President Mugabe describing him as “a consistent
leader with organisational capacity and strategic vision” to contradicting
his own party’s position on Mugabe’s unilateral appointment of governors,
Mutambara has become more of a GNU jester than a serious political player.
His party’s spokesman Edwin Mushoriwa is continuously burdened with the task
of distancing his party from the gaffe-prone professor’s diatribes.
It is ironic therefore that Mutambara sees it fit to accuse others of not
wanting the GNU to end when he himself has called for the elections to be
delayed up to 2013.
For a man whose leadership of his party is seriously under threat he seems
to have so much time on his hands to comment on the predicament of others.
We can’t agree more with Nelson Chamisa who described Mutambara as “lost and
mistaken”.
It is sad but true.

Finally, the EU head of delegation Aldo Dell’Arricia has been obliged to
write to the Herald to point out that its story of November 1, “EU accepts
Zim envoy” is incorrect. The actual situation is that the EU has given its
agrément to Zimbabwe ambassador-designate  HE Mrs Muchada, but the decision
about the possible presentation of Mrs Muchada’s credentials to the
president of the European Commission, Mr JM Barroso, has not been taken yet.

Eric Bloch:Bank probe misguided, pointless

http://www.theindependent.co.zw

Thursday, 04 November 2010 18:59

AT a recent 2011 budget consultative meeting, Finance minister Tendai Biti
voiced the government’s concern at the conduct of banks, and intimated
government’s intent to undertake a comprehensive investigation of their
operations.  In particular, government found it unacceptable that there are
liquidity problems, notwithstanding that (as at end of June, 2010) the banks
held deposits of US$1,86 billion, equating to approximately a third of the
country’s annual gross domestic product (GDP), which amounted to US$5,2
billion.  He argued that those deposits sufficed to provide a sufficiency of
currency to meet the country’s needs, and yet these problems persist.  He
also castigated the banks for the magnitude of their charges, which
recurrently erode the depositors’ funds.
The declared intent to conduct an indepth probe into the operations of
Zimbabwean banks is misguided, unnecessary and  pointless. It will lower
the  levels of public confidence in the banking system.  The majority of the
populace is deeply distrustful of Zimbabwean banks because of the recurrent
“borrowing” by the Reserve Bank of depositors’ foreign exchange during
2007/2008. The depositors of those funds were continuously hindered from
accessing their funds.  Thereafter, the distrust was intensified when
Zimbabwe demonetised its currency in 2009. It resulted in most bank account
balances being rendered worthless.  The result has been a deep reluctance of
almost all small, and many medium-sized businesses, to operate within the
banking system.  Instead, they hold their funds in safes in their business
premises (notwithstanding being facilitative of intensifying armed robberies
and of in-house misappropriations of funds), or in suitcases and boxes in
their homes, meeting most payment obligations with the cash held, instead of
bank transfers, cheques, and plastic money.
Moreover, the minister overlooks the fact that, to a very great extent, the
deposits held by the banks, cited by him as being almost US$2 billion, are
naught but book entries, arising from interbank transfers creating interbank
indebtednesses, and not by tangible currency.  The reality is that the gross
inadequacy of currency in circulation is that, to an exponential extent,
that currency flows out of the country to fund imports of the vast range of
commodities not readily available from Zimbabwe’s distressed commerce and
industry.  The insufficiency of currency in circulation is considerably
exacerbated by the magnitude of currency which is held, outside of the
banking system.  The harsh fact is that although the banks hold relatively
substantial deposits from account holders, only a small portion thereof is
represented by actual currency, and this is evidenced by the extreme
difficulty that most banks have in servicing depositor withdrawals, save
when those withdrawals are by way of interbank transfers.
The grievous insufficiency of bank loan funding into the economy is due to
several circumstances.  In the first instance, it must be recognised that
they cannot use the entirety of depositors’ funds to fund loans to
others.Banks are obliged to maintain prescribed statutory reserves and, on
the other hand, they are aware that the overwhelming great majority of the
deposits are of very short duration, with  immediate withdrawals within days
of deposit.  They have no assurance, in the volatile and unstable Zimbabwean
economy, that replacement deposits of equal or greater amounts will be
timeously forthcoming.  A major constraint upon the banks giving loans to
revitalise the economy is the absence of medium and long-term funding, for
the loan funding requirements of most enterprises are not of short duration.
The funds are critically needed as ongoing working capital whilst the
enterprises recover from years of economic oppression, and to finance
expenditure upon the rehabilitation and refurbishment of plant, machinery,
equipment, and the like, and to acquire state-of-the-art technology
resources.
The banks are further greatly constrained by the extent that intending
borrowers are unable to provide appropriate security for repayment of loans.
A consequence of the foolhardy approach to land reform is that the
agricultural sector is deprived of the opportunity of using land as
collateral for loan funding.  Property ownership in that sector has been
legislatively abolished, and notwithstanding that the Minister of Lands,
Herbert Murerwa, intimated government’s intent to accord negotiability to
the so-called 99-year leases, that has as yet not happened (over and above
that most of leases can be summarily terminated by government on three
months’ notice).  Other sector enterprises are also, in very many instances,
unable to provide the banks with adequate security and, as a general rule,
banks cannot risk depositor funds by making substantial advances without
security.
The security circumstances are further worsened by the promulgation of the
Indigenisation and Economic Empowerment Act, and its underlying regulations,
for the resultant of the legislation is that banks are unaware as to who
will be the future controlling shareholders of the borrowers and, therefore,
cannot assess whether those borrowers will be properly, effectively, and
viably managed and controlled, or whether future mismanagement will place in
jeopardy the ability to meet loan service obligations.  Moreover, to be able
to meet the economy’s borrowing needs, the banks must have substantial
access to offshore medium and long-term funding.  However, foreign
financiers are extremely hesitant to make such funding available, deterred
by the Zimbabwean political and economic instability, but also by pronounced
concerns as to the impact of the  indigenisation legislation.
Instead of threatening the banks with probes and investigations, instead of
castigation and vilification, government needs to resort to facilitation of
financial sector recovery and viability.  This necessitates positive actions
for genuine, comprehensive economic recovery, modification of land reform
and of indigenisation legislation, determined reconciliation with the
international community. Substantive efforts are needed to restore national
confidence in the banking system, and in that regard one small step forward
was taken, last week, when government restored the Reserve Bank role as
lender of last resort to the banks.

Eric Bloch

Can Zanu PF survive without using violence?

http://www.theindependent.co.zw

Thursday, 04 November 2010 18:58

WHAT, besides violence, would help Zanu PF win an election? In the past,
Zanu PF has been highly dependent on the army, police, intelligence service,
war veterans and its militia to unleash violence and intimidate Zimbabweans
to vote for President Robert Mugabe and his allies.
However, in the past few months Zanu PF has shown that next year’s elections
would be premised on a new strategy to coerce and persuade the voters. It
has gone full throttle in targeting apostolic sects, taking over the
airwaves, mobilising support from the traditional chiefs and using the
controversial indigenisation policy to woo the electorate for Mugabe, who
has been in power since Independence in 1980.
Zanu PF, which for a long time has been associated with violence, faces a
daunting task as the country goes for another election mid-next year as
suggested by Mugabe.
In a country where Internet penetration levels are below 10%, there are
signs the next elections, unlike in developed countries, would be fought not
in cyberspace, but on the airwaves. Zanu PF has already started playing
unambiguously partisan songs as it readies for the elections.
A new wave of partisan songs, glorifying Mugabe, now enjoys generous and
prime-time airplay. Youths appear to be the target of the songs as the
theme, singers and dancing style appeal to the younger generation.
The setting of the songs, though cross-cutting the rural and urban divide,
leans heavily to the latter, suggesting that the party which traditionally
enjoys support from rural areas may be taking the war to the MDCs’ doorsteps
in the suburbs. Urban areas have been the MDC’s epicentre from where its
popularity has spread over the past decade.
Political analyst and academic Ibbo Mandaza said the playing of songs
glorifying Mugabe and Zanu PF was mainly aimed at “eating away” MDC’s
support.
“The problem is the messages are empty,” said Mandaza referring to the
central theme in the songs. “This is a contest against the MDC. Most of the
programmes and the philosophy in Zanu PF were meant to make sure that they
stay in power forever while the MDC wanted to overthrow Zanu PF.”
Mandaza said it would be difficult to raise the interest of voters and the
biggest problem Zimbabwe is likely to face is a very low voter turnout as
most people are now tired of elections.
Another analyst, Takura Zhangazha, said while the recent move to play
partisan songs could galvanise the youths, it would not mean that this was
going to be successful. It was likely to be a case of spin doctors and
propagandists missing what the voters were seeing.
“The youths have shown a lack of interest in direct politics,” said
Zhangazha. “The recent move may be an attempt at bridging the gap (between
the youths and the older generation) but for Zanu PF, the campaign mantra
has been empowerment and indigenisation. While they may not be able to live
up to their promises, they are building the campaign around this.”
In an attempt to woo the young voters in urban areas, Zanu PF’s
electioneering took a new dimension with Mugabe giving Big Brother Africa
first-runner up Munya Chidzonga $300 000.
Meanwhile, Mugabe has used every opportunity to “explain” what
indigenisation meant saying it was supposed to benefit Zimbabweans. Just
like at the turn of the century when Zanu PF’s election manifestos were
rooted on the land, with the slogan “The land is the economy, the economy is
the land”, the party now has set its eyes on indigenisation.
Many people remain sceptical though as they suspect that the indigenisation
programme, as was the case with land reform, would benefit a few, especially
where there is no clarity on how the ordinary person would get involved.
Zanu PF has also started using apostolic churches and traditional chiefs to
garner support.
Last week, in clear violation of the Global Political Agreement, Mugabe
turned a chiefs’ annual meeting into a Zanu PF party function. This was a
conference which brought traditional chiefs from across the country and Zanu
PF’s heavyweights to Kariba, venue of the meeting.
Presumably, the chiefs, at the end of the annual conference, resolved that
Mugabe be life president and should be Zanu PF’s candidate in future
elections.
This was in clear violation of the GPA where political parties committed
themselves to ensuring political neutrality of traditional leaders as well
as making sure that they did not engage in partisan political activities.
In what has become a trademark, Mugabe was clad in a garb that is worn by
some of the traditional chiefs, reminiscent of what happened earlier in the
year when he put on flowing Johanne Marange robes at the church’s passover
ceremony in July.
Vice Presidents Joice Mujuru and John Nkomo have also addressed the church
members, while Defence minister Emmerson Mnangagwa has also been speaking at
churches.
On both occasions, Mugabe painted a picture of being an ordinary person as
he sought to endear himself with the potential voters.
Most apostolic churches have remained apolitical and the move to appear like
one of them by the president could be aimed at netting from this group. The
numbers game could also be attracting Mugabe as estimates put the total
number of members of apostolic churches at close to four million. Their
geographic spread would benefit a presidential candidate as they are not
concentrated in a single constituency.
Analysts said while Zanu PF appeared to have adopted clean methods of
winning support, the events of the 2008 presidential runoff continued to
cast a shadow leaving many fearing a repeat of the violence.
Godfrey Museka, a Harare based analyst, said it would take a lot of effort
to cleanse Zanu PF of its violent past.
“If you look at that party (Zanu PF), historically even during the
liberation war, they have been using violence to coerce people and I do not
see them surviving without the use of violence,” said Museka. “In most
elections after 2000, physical confrontation has benefited them a lot.”
Mandaza said there was a threat of a low turnout if the elections were held
and it would make sense if they were to take place in 2013 when they are
due. This, Mandaza said, would give time for things to cool down. Holding
elections, though making political sense as it may resolve the current
political impasse, could erase the small economic gains realised since the
institution of the government of national unity last year.
Observers also point out that the environment is yet ripe for free and fair
elections while the administration of an election could be a headache as the
voters’ roll is in a shambles. A national healing process appears to have
petered out somewhere between departure and destination as the communities
which were supposed to reconcile are literally at each other’s throats as
was shown during the recent constitutional outreach programmes in Nyanga and
Makoni.
In the June 2008 presidential run-off, 2 552 373 voters, representing 43,01%
of those registered to participate in an election cast their ballots. This
was a slight increase on the 42,73% turnout during the harmonised elections
three months earlier.
Zanu PF has been accused of manipulating the system, especially voter
registration where mobile units are deployed in the party’s traditional
strongholds especially the rural areas.
Political parties, after the 2008 harmonised elections, bemoaned the state
of the voters’ roll where names of dead people still appeared.

Leonard Makombe

Mugabe’s big election gamble

http://www.theindependent.co.zw

Thursday, 04 November 2010 18:56

PRESIDENT Robert Mugabe is a man generally not known to go back on a
particular statement that he makes in public, no matter how irrational it
may seem. In our current national political circumstances he has indicated,
at least politically, that he is keen to see out the end of the Global
Political Agreement (GPA) via the constitutional reform process in order to
have national elections by the end of June 2011. He reiterated the same
message as recently as at a conference of traditional chiefs in Kariba
towards the end of last month.
The circumstances that have led Mugabe to declare such a seemingly absolute
position are interesting to say the least. In what one can only view as
frustration at what he considers the intransigence of the MDC-T after it
protested the unilateral appointments of governors and ambassadors, Mugabe
decided to take one of the biggest gambles of his latter-day political
career. This is because his decision to announce his intention to ensure
that elections are held by June next year is extremely problematic for his
party and his leadership tenure.
The most evident problem that Zanu PF and Mugabe face if they go through
with holding elections next year is that they are still rather unpopular and
would not necessarily be able to win a free and fair election outright. This
means that it is next to impossible for them to run the country on their own
or would require nothing short of a political miracle within the context of
a free and fair election.
As a follow-up to the first problem, Mugabe has also probably assumed that
he can win an election based on a number crunching game which no doubt his
party has been analysing for a long time now. The intention would be to
target particular numbers of voters in various provinces and districts to
make up a total majority in a presidential vote count and thereby defeat the
MDC-T.  The statistical precedence to be used would be that of the March
2008 elections as to which provinces to target more than others. (Hence the
arrival of Jabulani Sibanda in various parts of Masvingo province.)
Zanu PF supporters and leaders would be given specific voter number targets
for the constitutional referendum in order to measure the capacity of their
party to be able to use such statistical evidence for an eventual general
election  with all the attendant manipulation of electoral regulations which
now include voting per ward as opposed to constituencies. The only problem
is that it might not be as successful as they would anticipate.
The third problem that Mugabe and Zanu PF would face is that if they were to
employ violent tactics in any way similar to those they undertook for the
disputed June 2008 presidential run-off election, it would be extremely
difficult to persuade Sadc and the AU on the legitimacy of the same. This is
because the two regional bodies are not keen on either another inclusive
government when they do not see any reason why this one should be cut short,
particularly because of his anger with the MDC-T. They will ask Mugabe, if
he insists, for a guarantee that if he loses, he will accept the result.
The same bodies are persuaded that unless Zanu PF is clear on its own
succession plan, there is no particular need for it to pull out of the GPA
and subject them to what they consider rather bothersome international
attention. So Mugabe’s dilemma is not only how to persuade Sadc and the AU
of the necessity of his somewhat rash decision two weeks ago, but also
guaranteeing the two regional bodies of the fact that the Zimbabwe Electoral
Commission together with what will remain of the inclusive government can
hold a free and fair election with an internationally credible and
acceptable result. And this will be expected to be a result that will not be
arrived at in a manner similar to the problematic presidential run-off of
June 2008 wherein the military was accused of undue interference.
The fourth gamble that Mugabe has made is that of assuming the full support
of his party structures in an election to be held in less than a year’s
time. If he declares another harmonised election, he would have uncertainly
calculated that his party has the capacity to conduct primary elections for
council, house of assembly and senatorial seats. Add to this the potential
disgruntlement of those sitting councillors, MPs and Senators who might not
easily be willing to have their terms of office shortened unilaterally. So
unless he can muster enough discipline in his own party structures he is
likely to be unable to get their total support over and above the
resolutions of his party’s national conference resolutions in December.
The fifth assumption that Mugabe makes is that his newfound black economic
empowerment policy will gain him enough public sympathy to win what must be
a popular vote by June 2011. Given the shortness of time between now and
then, it is unlikely that the systems of patronage will have spread wide
enough for him to gain the moral support that would make an electoral
difference. By its very nature, an economic empowerment programme via
business/mining/industry is largely elitist and difficult to turn into
popular support except on paper. It is also economically dangerous to
attempt to fast-track such an initiative given the damaging effects it can
have on an already fragile national economy with high unemployment, a weak
state revenue base as well as a foreign currency standing in for a national
one.
All in all, Mugabe’s gamble is a huge political one for himself and his own
party. It is disheartening that his gamble also has serious consequences for
the rest of the country and its citizens.
The gamble by Mugabe is one that is laced with the frustration of being
unable to act unilaterally in government without Sadc, the AU and the rest
of the international community being brought into the fray.  It also means
that following his announcement, he may however still be obliged to accept a
visit by South African President Jacob Zuma on what exactly he means and how
he intends to undertake the same. The difference in this instance might just
be the same.

Takura can be contacted on kuurayiwa@gmail.com This e-mail address is being
protected from spambots. You need JavaScript enabled to view it .

By Takura Zhangazha

Candid Comment: Biti faces another Mission Impossible

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:10

NGINYA Mungai Lenneiye, a World Bank country representative here, made some
important observations this week on some of the hurdles awaiting Finance
minister Tendai Biti when he presents his budget later in the month.
He says Biti faces two types of problems — those  that lie outside budget
instruments like limitations associated with political reforms and low
implementation capacities in government and those that the budget can
address — reducing opportunities for arbitrage in the economy, tackling
unemployment through economic growth, supporting the recovery of human
capacity and improving budget management.
Apart from problems, Lenneiye said Biti needs to negotiate carefully and
conjure some magic trick to make everyone happy.
But like his first fiscal policy last year, his second is fraught with the
same problems as his first. Biti has budgeted about US$2 billion for 2011.
Last year, Biti had hoped the international community would chip in with
US$800 million. But as the year progressed, it became clear the
international community would not loosen its purse strings.
Also problems in the unity government could have contributed to the
unavailability of budget support.
And nothing has changed on the ground to change the international financiers’
position. If anything, disagreements have intensified among the three
principals — President Robert Mugabe, Prime Minister Morgan Tsvangirai and
Deputy Prime minister Arthur Mutambara. Except for health, international
donors and financiers are not keen to part with their money when it comes to
Zimbabwe and understandably so.
Although government’s revenue collections have improved slightly, it is
still not enough to bring smiles at most of the ministries.
But Biti has taken all sorts of ridiculous demands within his stride. A
consultative meeting in Bindura all but confirmed detachment from reality
and general lack of appreciation of the problems facing the economy.
After quantifying demands of various groups in that town alone, Biti says
the figure came to US$8 billion. Now, that is just Bindura.
Such a demand to a treasury that struggles to make a billion in revenue
annually is just plain ridiculous. It would seem all and sundry, are
cognisant of the problems bedevilling the economy and making such demands is
unreasonable. This demonstrates that there is a high level of both arrogance
and ignorance
Against such a background, where capacity utilisation and revenue collection
are low, there is little Biti can do this year that is different from last
year. And it is expecting too much to hope that government ministers will
cut back on travel expenditure when even President Mugabe himself takes 100
people on an international trip. Unless government cuts back on unnecessary
expenditure, the little resources available will be put to waste.
Indeed it’s mission impossible for Biti.

Chris Muronzi

Editor's Memo:Shamu’s astounding dereliction of duty

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:08

ASTOUNDING is the word that aptly describes Media and Information minister
Webster Shamu’s response to proposals made by Zanu PF zealots that
journalists and cartoonists who portray President Robert Mugabe in a bad
light should be hanged.
Shamu told our sister newspaper, NewsDay, that Zanu PF activists agitating
for a clause in the new constitution to hang journalists for exposing Mugabe’s
policy incompetence and inadequacies were entitled to express their views
whatever they were.
The minister even had the cheek to challenge journalists to ask the
activists why they had made that proposal during the constitution-making
outreach programme, instead of seeking his comment.
Shamu’s behaviour is a clear abdication of his duty and mandate as the
minister in charge of media. Instead of taking the opportunity to castigate
such unruly conduct in his party — by those calling for the imposition of a
death sentence on journalists who would be exercising their oversight role
on the president on behalf of the public — the former disc jockey tacitly
endorsed the activists’ proposal, no doubt  for the sake of endearing
himself to the ageing Mugabe.
Hate speech, especially targeted at journalists, should not be allowed in a
country which claims to be a democracy and Shamu should know better. Media
freedom is not only a fundamental right, but also a basic necessity in a
society which has presumably moved on from the Dark Ages. Those who are
against an open and free media are not only hostile to the democratic ethos,
but are enemies of a society which demands transparency and accountability
in the way it is governed.
As Media and Information minister, Shamu should have issued a public
statement condemning the activists’ proposal meant to stifle and silence the
media. He should have dismissed such suggestions with the contempt they
deserve. They were disgraceful and dangerous.
In March, Mugabe met editors from various media stables and spoke of the
need for an open media to uphold the inalienable right to a free press. But
we cannot have a free press when journalists are arrested, tortured,
threatened and some of them hounded out of the country for merely
criticising Mugabe’s style of governance which has reduced this country to a
basket case.
Constitutions are not crafted to deal with current issues like entrenching
Mugabe’s dictatorship and other challenges, but for posterity. Why should
Mugabe be treated like a demi-God?
We challenge Shamu to issue a public statement condemning the Zanu PF
zealots, and clearly state that government will uphold press freedom.
The minister should, as a matter of urgency, demonstrate his sincerity on
media reforms — about which he likes to talk — so as to build a nation whose
foundation is copper-bottomed in an unfettered press.
On another note the country’s electronic media has been dominated by the
publicly-owned, but state-controlled ZBC since Independence and it’s now
time that the monopoly came to an end.
The Broadcasting Authority of Zimbabwe (Baz) should issue broadcasting
licences to private players for plurality in the airwaves. The country
desperately needs more radio and television stations to educate, inform and
entertain the public for the betterment of the nation.
Issuing of electronic media licences should only be done after the Baz board
has been reconstituted to get rid of media hangmen like Tafataona Mahoso who
currently chairs it. Mahoso’s legacy, in regards to the print media over the
last decade, is well documented and a person of such disposition should not
be allowed near any institution to do with the media.
Government should also immediately abrogate or amend draconian laws that
unduly restrict media freedom and plurality, among them the Access to
Information and Protection of Privacy Act, Public Order and Security Act,
Broadcasting Services Act, Official Secrets Act, Prisons Act, Censorship and
Control of Entertainments Act, Courts and Adjudicating Authorities (Public
Restrictions) Act, the Privileges, Immunities and Powers of Parliament Act,
and the Criminal Law (Codification and Reform) Act.
That’s just for starters.

NEVANJI MADANHIRE

Comment: Diamonds: sleaze, bribery and fraud

http://www.theindependent.co.zw

Thursday, 04 November 2010 19:07

THE arrest this week of several senior Zimbabwe Mining Development
Corporation (ZMDC) officials for corruption in connection with the Chiadzwa
diamond mining activities confirms what many people and organisations,
including the Zimbabwe Independent, have been saying for the better part of
the year: that the Marange mining activities are riddled with sleaze,
bribery and fraud.
Police on Tuesday night and Wednesday arrested ZMDC officials who included
suspended chief executive and general manager Dominic Mubayiwa, Tichaona
Muhonde, Gloria Mawarire, Mark Tsomondo and Ashton Ndlovu.
Canadile’s deputy chairman Lovemore Kurotwi was also arrested. They are
facing allegations of fraudulently conning government to secure diamond
mining licences.
The main characters in the whole saga include ZMDC, government’s mining arm.
New Reclamation Group (Reclam) of South Africa and Core Mining and
Minerals (Pty) Ltd are also involved. The two companies were brought into
the Chiadzwa diamond activities by government.
Mbada is a 50/50 joint venture between ZMDC’s subsidiary, Marange
Resources and New Reclamation Group’s subsidiary Grandwell Holdings, while
Canadile Miners is a 50/50 joint venture between Marange Resources and Core
Mining and Minerals. These companies have no verifiable mining experience
but they controversially got the mining contracts.
From day one we blew the whistle at the Independent after investigations
into the Chiadzwa activities and carried a series of articles to demonstrate
that corruption was rife in Marange. We focused on how the mining licences
were issued to dubious South African-based companies without transparency
and accountability. We tried to shed light in the dark corners of the shady
activities of Mbada Diamonds and Canadile Miners.
The whole point was to show that there were irregularities and corruption
surrounding the issuing of licences to these companies. This became
particularly important when government ministers and other officials were
denying wrongdoing.
There were also feverish denials of corruption by government cronies and
hirelings trying to position themselves to pick up the crumbs from Chiadzwa.
It was amazing how some individuals outside government, posturing as
government spokesmen when they are not, even tried to shamelessly defend
stinking corruption. Now the chickens are coming home to roost.
For us as a newspaper, one of our objectives is to understand popular
feeling and to give expression to it; and fearlessly expose corruption both
in the public and private sectors. This is what we have been doing and will
continue to do so.
Those who want to steal other people’s assets, misuse public resources for
personal gain or defend and cover-up corruption will also be exposed. No one
should think because they are well-connected and powerful they can steal,
manipulate the system for self-enrichment and get away with it. Corruption
in all its various forms will be exposed and those involved will be named
and shamed no matter how powerful and influential they think they are.
Since the beginning of the year we said there were dubious mining activities
going on at Chiadzwa. This issue was raised all over the place — including
in cabinet many times — but Zanu PF government officials and their cronies
tried in vain to defend it. Usually those with something to hide or who
wanted to join the looting bandwagon jumped to the defence of Mbada and
Canadile.
It is a fact that Mbada Diamonds and Canadile Miners were given mining
licences without going through a transparent process and procedures. Mbada
and Canadile signed Memorandums of Agreement in July and final agreements in
October last year before they started minting.
Since then they have been massively extracting diamonds in Chiadzwa but
government and the public have not benefited much. Most of the diamond
wealth is not properly accounted for. It’s clear there are serious leakages
due to corruption.
Government should take strong measures to clean up the mining sector which
has been invaded by corrupt officials and opportunists hovering all over the
place. These corrupt elements must know that we are watching them and they
will be exposed sooner rather than later.