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Zim produces weapons in anti-Mugabe plot case

Zim Independent

HARARE - Zimbabwean prosecutors on Thursday produced a list of
more weapons they say were stockpiled by an ex-soldier plotting to
assassinate President Robert Mugabe, delaying his trial, the soldier's
lawyer said.

Peter Hitschmann, a soldier under the former white government of
Rhodesia -- Zimbabwe's name before independence in 1980 -- was arrested in
March with six others including an opposition legislator after police
discovered an arms cache at Hitschmann's home in the eastern border city of
Mutare.

Hitschmann denied the charges.

The trial was due to start on Thursday but was postponed after
the list of extra weapons such as teargas canisters and flares, allegedly
found at Hitschmann's house, caught the defence unaware, Hitschmann's lawyer
Eric Matinenga said.

"Just before the trial opened the prosecution gave me an
additional list of weapons which were allegedly in Hitschmann's house but
which my client is unaware of," Matinenga told Reuters from the trial venue
in Mutare.

Matinenga said in his defence outline handed to court that
Hitschmann was tortured while at an army barrack in Mutare.

"That was part of our defence and the court took note of that,"
said Matinenga. "For example he was viciously kicked in his testicles
resulting in him blacking out," he added, reading from the court
submissions. He did not say who tortured Hitschmann.

Hitschmann is being charged with breaching the country's tough
security laws and could face life in prison if convicted.

The government says the arms cache found at Hitschmann's home
included AK-47 automatic rifles, machine guns, shotguns, pistols, revolvers,
tear gas canisters, flares, thousands of rounds of ammunition and a two-way
radio communications system.

Police say the arms were discovered on March 6, after Mugabe's
82nd birthday celebrations in February, but have also said investigations
into the alleged plot had started earlier.

A Harare High Court in March denied Hitschmann bail arguing that
he was likely to flee.

Hitschmann is a licensed arms dealer but prosecutors say his
licence was strictly for non-military weapons. His defence is arguing that
the retrieved weapons had insufficient firepower to overthrow a government.

The state argues that the weapons were meant to be used to
disrupt Mugabe's 82nd birthday celebrations in Mutare, where the veteran
leader was feted at a stadium by thousands of supporters of his ruling
ZANU-PF party. -- Reuter


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Push Mugabe into quitting, House of Lords urges SA

Zim Independent

BRITAIN'S House of Lords has urged South Africa to renew
systematic pressure on President Robert Mugabe to retire as part of plans to
resolve Zimbabwe's multifaceted problems.

In a wide-ranging recent debate, the Lords said Britain and
South Africa, among other key members of the international community, have a
duty to confront Mugabe over his regime's intensifying acts of repression.
This comes after the recent brutal assault on trade union leaders which
Mugabe said was justified.

Lord Blaker said London and Pretoria should end their silence
over the Zimbabwe situation and speak out against misrule.

"The Government of Zimbabwe is getting more brutally violent day
by day. The courageous opponents of Mugabe's regime have been demonstrating
their opposition more vigorously than ever," Blaker said.

"The campaign against Mugabe is backed by the Zimbabwe Congress
of Trade Unions, the South African trade union organisation Cosatu, Zimbabwe's
National Constitutional Assembly, the Zimbabwe National Students Union, a
statement by the ILO, Women of Zimbabwe Arise - a brave and active group -
and churches, apart from the Bishop of Harare who has been busy collecting
farms."

He said the European Union must maintain sanctions against
Harare to ensure Mugabe does not wriggle off the hook.

"Sanctions are absolutely vital and must continue. If they were
to be removed, the morale of those opposing Mugabe would collapse, as would
their campaign," he said.

"I am told that some members of the EU are a bit wobbly on
sanctions, especially those from southern Europe, although the Scandinavians
are sound." He singled out Portugal as a notable "wobbler".

Blaker said South Africa should act because it had interests
that were at stake in Zimbabwe.

"Many of Zimbabwe's neighbours are suffering economically, such
as South Africa, as well as many others in Sadc," he said. "South Africa
fears Zimbabwe will implode, flooding it with even more immigrants. I
suggest that South Africa could use its dominant position in Sadc to call
for Zimbabwe to be suspended from its membership so long as Mugabe is in
power."

He said Mugabe must also be taken to task through the United
Nations Security Council for his "scandalous operation" of destroying
informal businesses and shanties last year.

Lord Acton asked what Pretoria's policy towards Zimbabwe was in
view of its inconsistent engagement on the issue. Baroness D'Souza said
South Africa and the international community must act collectively to sort
out the situation in Zimbabwe.

"Now is, perhaps, the time to use the full array of legal,
diplomatic and other measures open to the UK and the EU in order to create a
critical mass of international opinion and to support those in Zimbabwe who
bear the unspeakable brunt of repression," she said.

"The Zimbabwean situation has now reached such proportions that
it is appropriate to refer Zimbabwe to the Security Council."

She quoted the Select Committee on Foreign Affairs' report last
year which said: "We recommend that the United Kingdom start a campaign for
the referral of Robert Mugabe to the International Criminal Court for his
manifold and monstrous crimes against the people of Zimbabwe.

"Torture in Zimbabwe is widespread, systematic and severe and
therefore constitutes a crime against humanity," D'Souza said.

"Under the Rome statute of the International Criminal Court,
there is a duty on all those who are signed up to the statute to bring a
prosecution at the court in The Hague. Perhaps now is the time to initiate a
campaign on that."

Baroness Park said the Matabeleland massacres in which 20 000
civilians were killed by the Fifth Brigade between 1982 and 1987 must be
factored in this.

The Earl of Sandwich said Zimbabwe was in crisis largely because
of the actions of "one man who has transformed himself from an acclaimed
idol of the liberation struggle to a ruthless dictator who is well past his
sell-by date".

Lord St John of Bletso said although he had been hopeful, the
Zimbabwe situation continues to deteriorate dramatically.

"There is a popular saying that pessimism is sensible because
pessimists are never disappointed. Unfortunately I have been an optimist for
Zimbabwe, and I have been bitterly disappointed," he said.

Lord St John said Mugabe was now virtually Life President and
was afraid of leaving office because he could be held to account for gross
human rights abuses like former Liberian president Charles Taylor.

He said it was unlikely Zimbabweans would rise against Mugabe
because there was no organised political opposition at the moment.

"There are two reasons why the people will not protest. First,
unfortunately, there is a lack of plausible opposition in the country," he
said.

"The MDC seemed credible in the past but is now deeply-divided
between those who support Morgan Tsvangirai, a man with charisma but
doubtful judgement, and those who support Arthur Mutambara, a man of great
intellect but less popular appeal. Secondly, a remarkable 70%, if not more,
of Zimbabweans live in rural areas where they remain largely unaware of the
government excesses in the urban areas."

Lord Chidgey said Zimbabwe was "sinking down to the level of a
failing and bankrupt state". Lord Astor said Mugabe's regime was currently
being "shored up by collaborators - some guilty, some gullible, some in
Zimbabwe and some in the international community".

Parliamentary Under-Secretary of State, Foreign and Commonwealth
Office, Lord Triesman said people should focus on Zimbabwe's crucial 2008
presidential election to ensure it is free and fair as part of measures to
secure change. - Staff Writer.


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NEDPP choked by political battles

Zim Independent

Ray Matikinye

ALL signs appear to indicate the National Economic Development
Priority Programme (NEDPP), touted as a quick-fix panacea to Zimbabwe's
economic slide, is cloned from Indonesian and Malaysian economic policies of
the 1990s.

But what gives the Zimbabwean version a different hue is that
the economic turnaround blueprint is situated in a volatile political
environment as a result of Mugabe's succession issue.

As the Zimbabwean version drifts towards its December deadline,
it has assumed political dimensions heavily overshadowed by serious
infighting amongst the higher ranks of the ruling Zanu PF party, hindering
whatever progress it was expected to achieve.

Its major thrust to reduce inflation and raise US$2,5 billion
now lies in tatters as Zanu PF's camps battle for supremacy in the
succession race.

Nothing illustrates the evaporation of hope and disillusionment
among legislators more than the belief that NEDPP has failed to lift
Zimbabwe out of the economic rut.

Last week Bikita West MP, Col (Rtd) Claudius Makova doubted
NEDPP's potential when he asked experts in the Economic Development ministry
during parliamentary hearings: "We have moved from programme to programme.
Are you saying this one is a better programme than those implemented before
it?"

But more telling was Makova's reaction on Monday this week when
he expressed fears of being labelled a reactionary critic of government
policies.

"These days it is a political risk to 'see before others have
opened their eyes' lest you are viewed in different light," Makova told the
Zimbabwe Independent.

"You risk burning your fingers. There are others in our
committee who expressed similar dismay and frustration but the reaction by
my peers has been that I have been outspoken and too forthright in
questioning NEDPP. Their remarks portray someone who has trodden where
others fear to go, but I am not the only one who wondered at NEDPP's
achievements so far."

During the mid-term 2006 monetary policy review, Reserve Bank
governor Gideon Gono blamed bureaucratic inertia as one of the drawbacks
that had beset the turnaround programme.

"Often central government has come up with noble projects and
policies, but the same have fallen flat at the implementation stage or have
suffered from policy reversals, indecision and contradictions as ministries
and parastatals fought turf wars at the expense of the nation at large,"
Gono said.

"As long as these vices are not dealt with effectively, all our
efforts at turning around this economy will count for nothing."

What Gono did not disclose was who was responsible for stymieing
progress.

Politicians are beginning to question the benefits of NEDPP,
voicing concerns as to whether the ambitious programme is any different from
others that have been initiated before it.

NEDPP was meant to cut bureaucratic red tape and fast forward
solutions to declining economic performance. It has become bogged down in a
matrix of vicious political infighting over the succession race.

"We have expressed reservations about the sincerity of the
people who have come to brief us on the success the programme has achieved
so far," says Pearson Mungofa, the MDC legislator for Highfield.

"There is nothing tangible that is expected to come out of that
programme and we don't expect any change," Mungofa said. He rued that the
country was losing a lot in the mining sector because there was no clear cut
policy.

"Look at what is happening in Marange," he said. "The Ministry
of Mines is dead. The country could have benefited from the diamonds."

Mungofa was the first black to qualify as a diamond cutter.

NEDPP is anchored in the Zimbabwe National Security Council that
is chaired by President Mugabe, with other appendages such as the National
Economic Recovery Council chaired by Vice-President Joice Mujuru. There are
various committees that cover sectors such as tourism, mining and industry,
among others.

Mungofa said the greatest drawback was that everything had to be
sanctioned by President Mugabe.

"No matter how beneficial the advice given by the committees
under NEDPP, the final say rests with Mugabe. He decides what advice to take
and what not to."

Mungofa said most Zanu PF MPs feared voicing concerns in these
committees because they had to toe the party line for fear of unsettling
party bigwigs.

"Aside from the occasional maverick, Zanu PF MPs seem not
prepared to rock the boat."

Sources close to the NEDPP say rivalry between two camps led by
Solomon Mujuru and the party's legal affairs secretary Emmerson Mnangagwa,
aspiring to outbid each other in the succession race, has hobbled the
process.

"Whatever one camp suggests as a solution to the economic woes
confronting Zimbabwe is shot down by the other just to frustrate that
effort," a source privy to the machinations in the various committees said.
"Each of the two camps is trying to gain competitive edge over the other."

Critics also blame the militarisation of major state
institutions as not helping move the process forward.

"Whenever pertinent questions are asked, the military guys on
the committees are quick to jump up and proscribe them, saying the answers
are security issues," another source said.

Addressing the portfolio committee last week, one of the deputy
directors for economic analysis in the Economic Development ministry,
Thabani Dhliwayo, summed up the mood that reflects NEDPP's failure for
asking incisive questions: "Honourable senators and MPs, you have really put
us in a fix."

He said several factors such as policy reversals, a
business-as-usual approach and lack of a shared vision were militating
against implementing NEDPP.

One striking similarity with the Indonesian experience is that
in the 1990s, the Indonesian regime's increasingly authoritarian and corrupt
practices became a source of much discontent.

Suharto's almost unquestioned authority over Indonesian affairs
slipped dramatically when the Asian financial crisis lowered Indonesians'
standard of living and fractured his support among the nation's military,
political and civil society institutions. After internal unrest and
diplomatic isolation sapped his support in the mid-to-late 1990s, Suharto
was forced to resign from the presidency in May 1998.

Zimbabwe's NEDPP has not yet reached that stage. But it is
already clear the programme has fallen victim to political intrigue and an
absence of will.


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ZDI chief, Kabila own firm at centre of row

Zim Independent

Clemence Manyukwe

PRESIDENT of the Democratic Republic of the Congo (DRC) Joseph
Kabila and the Zimbabwe Defence Industries (ZDI) chief executive Colonel
Tshinga Dube have been named as the owners of a company that is enmeshed in
a pay dispute with 10 local workers for services rendered at a diamond mine
in the central African country.

ZDI is a state-owned weapons manufacturing firm.

The revelation was made last Friday at the Harare High Court by
retired army Colonel Paul Kujoka who was employed at the diamond mine in
2000 as a general manager.

Kujoka made the revelation while giving evidence in a matter in
which one of the former mine workers, Urayayi Sakupwanya, is demanding US$21
000 from businessman Lloyd Hove and a company called Thabs Marketing. It is
not clear how much the other nine workers are owed by the mine owners.

Hove is Thabs Marketing chief executive.

Sakupwanya, who is being represented by Harare lawyer Advocate
Prince Machaya, said he was supposed to be paid a monthly salary of US$5
000.

Under cross examination Kujoka, who described himself as a
"known military man in the DRC after having worked for the ZDI" marketing
arms and ammunition in the Congo, said: "The company is owned by President
Joseph Kabila and Col Dube, the general manager of Zimbabwe Defence
Industries."

Kabila replaced his father Laurent as president after the latter
was shot dead by his bodyguard in January 2001.

"Pascal Unyemba came to the mine from the president's office
(DRC) as a representative of Dube and Associates," he added.

Kujoka said the Zimbabweans were employed by locally-registered
Thabs Marketing that made them sign employment contracts with Dube and
Associates which is registered in the Congo on promises that their United
States dollar salaries would be deposited in Harare at a local bank.

The salaries were never deposited.

Kujoka said Thabs Marketing gave them a guarantee that if
problems arose with Dube and Associates, the local company would bear
responsibility.

Kujoka said at the mine, 65% of income went to Thabs Marketing
while Kabila and Dube's company took 15% of the proceeds.

Two local chiefs, whom Kujoka said received them well in their
community, were given 14% and 5% of proceeds respectively while 1% went to
some commissioners.

"Whereas other stakeholders were given their share in money
form, Dube and Associates demanded diamonds. the distribution was done on a
weekly basis. Every week I gave diamonds to Unyemba for Dube and
Associates," he said.


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Gumbo blames Nkomo,Manyika for deepening cracks in constituency

Zim Independent

Pindai Dube/ Nqobani Ndlovu

ECONOMIC Development minister and Zanu PF MP for Mberengwa East,
Rugare Gumbo, has accused party chairman John Nkomo and political commissar
Elliot Manyika of fuelling divisions in his constituency.

This follows the recent suspension by Nkomo and Manyika of three
Mberengwa District Coordinating Committee (DCC) members believed to be
aligned to Gumbo on allegations of indiscipline.

The three officials are DCC chairman Munyaradzi Ndlovu and
committee members Shiri Masenda and Jetina Matavire.

Gumbo has continued to work with the suspended DCC members in
defiance of Nkomo and Manyika, arguing that their suspension is
illegitimate.

"These people are being victimised by the Midlands provincial
executive that provided false information to the national disciplinary
committee headed by Nkomo," Gumbo said.

"Nkomo and Manyika should leave these people to work for the
party because they are the ones that campaigned for me vigorously to win
elections in 2005. The suspension is illegitimate and they will continue to
work for the party."

When contacted for comment, Nkomo and Manyika confirmed that
they suspended the three DCC members for alleged indiscipline.

The two politburo members maintained that the suspension stands
despite Gumbo's defiance and attempt to belittle the party's disciplinary
committee.

"The suspension still stands," said Manyika. "We don't encourage
those members to work until investigations on their pending cases are
completed."

Nkomo added: "What Manyika has said and did (suspension) is a
decision of the party's disciplinary committee to restructure Mberengwa
following reports of serious divisions in the area."

They however could not be drawn to reveal what action would be
taken against Gumbo for defying the party's disciplinary committee.

The Zimbabwe Independent earlier this year revealed that Gumbo
and Richard Hove, the Senator for Mberengwa-Zvishavane, were at loggerheads
over control of the constituency.

The dispute emanated from the claim that Gumbo wanted to remain
the strongman in the province as a whole. Gumbo was understood to have fired
the original DCC members and replaced them with his right-hand men whom
Nkomo and Manyika have suspended.

According to authoritative sources, the suspension of the three
DCC members aligned to Gumbo is believed to be an attempt to get back at him
for what he did earlier this year. Sources alleged that the bitter suspended
DCC members, with the help of Gumbo, are now de-campaigning Zanu PF Rural
District Council candidates ahead of elections set for tomorrow.


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Soldiers could have deprived govt of 1 200t of wheat

Zim Independent

Augustine Mukaro

GOVERNMENT could have lost close to 1 200 tonnes of wheat worth
almost $260 million after soldiers running the Operation Maguta programme
ploughed into the ground 200 hectares of late planted winter wheat to pave
way for a summer maize crop at Hunyani farm near Chinhoyi.

Farming sources in the Chinhoyi area said the army destroyed 200
hectares of wheat they had planted in August after realising that the crop
would not mature before the onset of the rains. They decided to prepare the
field to plant maize.

Wheat is normally planted before the end of May and must be
harvested before the onset of the rains to avoid losses. The Grain Marketing
Board is buying a tonne of wheat for $217 million. It costs about $450 000
to grow a hectare of the crop.

The farm, which was allocated to Chinhoyi University during the
land reform programme, was taken over by the army last year at the launch of
Operation Maguta.

"Wheat at Hunyani farm was planted in August nearly two months
after the expected planting date," a source from Chinhoyi said. "Wheat is a
five-month crop so planting it in August means harvesting it in January.
From the onset prospects of a maximum yield were very low primarily because
of the late planting, and signs of early rains forced them to disc in the
crop."

Chinhoyi University spokesman Musekiwa Tapera did not deny the
development but referred all questions pertaining to farm operations to the
army.

"I cannot comment on developments at the farm because the army
is running it under Operation Maguta," Tapera said.

Sources said last week on Thursday and Friday tractors could be
seen ploughing through the knee-high wheat crop. The army planted 200
hectares of wheat in August and could have planted up to 400 hectares if
Arex officials had not advised against the move on the basis of late
planting.

Surplus wheat seed which they intended to plant on the extra 200
hectares is still stashed at the farm workshop, a source said.

If the area had been planted on time, an estimated 1 200 tonnes
could have been harvested with an average yield of six tonnes per hectare.


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New equipment to shore up Hwange production

Zim Independent

Lucia Makamure

THE Hwange Colliery Company Ltd commissions its
re-capitalisation programme today after acquiring new machinery.

The company, which has been operating below capacity due to
foreign currency shortages, is set to improve its performance with the
arrival of the new equipment.

The recently acquired Chinese equipment includes coal haulers,
two excavators and a water bowser bought from North
China Industries Corporation (Norinco) at a cost of US$6,3
million.

Cliff Nkomo, spokesperson for Hwange Colliery Ltd, said the
funds to buy the equipment were generated through export proceeds. However,
the commissioning of equipment alone is no guarantee that optimum production
levels will be achieved and maintained as the mine is heavily
under-capitalised.

Some major challenges also faced by the company include working
capital constraints, use of antiquated equipment, water logging of the mine
and inadequate supply of spares.

These problems have resulted in the company's bad performance as
there is inadequate coal supply which is affecting tobacco farming,
performance of the National Railway of Zimbabwe steam engines, the
engineering and manufacturing sectors, electricity generation at ZPC which
has resulted in incessant power outages, and underperfomance of Zisco.

"We aim to raise our production capacity from 180 000 tonnes in
September 2006 to optimum capacity of 400 000 tonnes by December," said
Nkomo.


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Govt loses battle to control prices

Zim Independent

Clemence Manyukwe

GOVERNMENT appears to be losing the battle to control prices
after the High Court on Wednesday nullified directives on the price of
cement, the same day that a magistrate said the Attorney-General's office
was wasting taxpayers' money by failing to prosecute cases against company
executives accused of raising prices illegally.

High Court judge, Justice Bharat Patel, made the order following
an application by Circle Cement (Pvt) Ltd, challenging the specifying of
cement as a product subject to price controls.

"The control of cement in item 5 of the Fifth schedule as read
with Section 7 of the Control of Goods (Price Control) order 2003 (Statutory
Instrument 125 of 2003) is hereby declared ultra vires the control of Goods
(Price Control) regulations 2001 (Statutory Instrument 334/2001) and is
accordingly null and void," read justice Patel's judgement.

Through its lawyer, Terrence Hussein, Circle Cement said it has
previously been charged on nine occasions with the same offence, but all the
matters were withdrawn before plea at the Harare magistrates' court.

Also on Wednesday, Harare magistrate Priscilla Chigumba
acquitted National Foods Ltd, a day after Dairibord Zimbabwe was cleared of
the same offence on prices.In her ruling Chigumba said the AG's office must
mount "credible prosecution of these matters, otherwise it is wasting the
taxpayer's money".

The government is currently divided over the issue of price
controls with Vice-President Joice Mujuru's promise that there would be no
more arrests of business executives being ignored.

On Tuesday the director of research and consumer affairs
in the Industry and International Trade ministry Norman
Chakanetsa, who is facing allegations of increasing the price of bread
without authorisation, appeared in court.

Chakanetsa said Industry and Trade minister Obert Mpofu had
given him permission to raise prices. Chakanetsa's case is continuing in
court.

Price control regulations list seven categories of goods that
the government can control through the Industry and International Trade
ministry.

These are drugs as defined in the Medicines and Allied
Substances Control Act; fertlisers; foodstuffs and beverages other than
alcoholic beverages; food additives, including salt, vegetables and fats;
iron and steel and other refined or unrefined mineral raw materials; fuel
and soaps.


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Gono brings more misery to banking sector

Zim Independent

Dumisani Ndlela

THE Reserve Bank this week forced the lock on banks with a fresh
seven-year bond raid and increased holding thresholds for the five-year
Financial Sector Stabilisation Bonds (FSSBs) which mopped up $65 billion
from the market on take-up last week.

The new bonds, whose take up date is November 17, will mop up
over $130 billion from the market, while the additional thresholds for FSSBs
will take up about $30 billion.

This will mean financial institutions will have locked a total
of $225 billion in the long-term financial instruments. The financial
institutions will be forced to borrow from the central bank at penal rates
to fund short-term obligations.

Dealers said the central bank's initiative, that immediately
sent bank treasurers searching for a solution to an imminent funding crisis,
was likely to plunge the market into massive shortages ahead of huge
maturities in November and December.

The Zimbabwe Independent last week reported that there were
growing banking sector fears of a drastic response by the central bank to
the FSSBs' failure to induce calculated market shortages following take up
of the bills.

The Reserve Bank said in a note to financial institutions that
holding thresholds for the five-year FSSBs had been increased from 10% of
the balance sheet size as at September 30 for commercial banks to 15%, and
from 7,5% for merchant banks to 12,5%.

Financial houses, building societies and discount houses had
their holding thresholds increased from 5% to 10% while asset management
firms, which were compelled to hold bonds amounting to 2,5% of their balance
sheet sizes, are now expected to increase their holding thresholds to 7,5%.

Commercial banks will be compelled to hold Economic
Stabilisation Bonds (ESBs) amounting to 20% of their balance sheets while
merchant banks will have to take up ESBs equivalent to 17,5% of their
balance sheets. Finance houses, building societies and discount houses will
be forced to hold EBSs equivalent to 15% of their balance sheet sizes
respectively.

Asset management firms will be required to hold bonds equal to
12,5% of their balance sheet sizes. The balance sheet sizes used for ESBs
are as at October 31, while the balance sheet sizes used for FSSBs are as at
September 30.

The central bank said it had taken the measures because of the
high liquidity levels over the remaining period this year and beyond.


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Polls bring opposition strength under spotlight

Zim Independent

Ray Matikinye

THE weekend rural district council elections in more than 800
wards should be a major test for contesting opposition parties in the Zanu
PF strongholds only 18 months ahead of the presidential election in 2008.

With Zanu PF having already won 485 wards unopposed, opposition
parties will have to produce a dramatic performance to make significant
inroads into the ruling party's political turf.

Despite their continued failure to break into Zanu PF-dominated
communal lands, the opposition parties have claimed that they are gaining
ground. Ward election results are important because they are nationwide and
cover grassroots constituencies where the majority of voters live.

Spokesperson for the Tsvangirai camp, Nelson Chamisa, said his
party would win in those wards that his party is contesting unless the poll
was rigged.

"The people have been very clear that they are tired of Zanu PF
councillors who have failed to develop their local areas," Chamisa said.

"They are tired of Zanu PF councillors who have engaged in
corrupt activities and abused council equipment and machinery. They are
tired of Zanu PF councillors who have politicised food aid by denying maize
and grain to people of other political affiliations."

Political commentators however expressed reservations about the
possibility of opposition parties making a major dent in Zanu PF's support
base in tomorrow's election.

Head of the department of political administration at the
University of Zimbabwe, Dr Eldred Masunungure, said the outcome of the rural
district council elections would confirm what is already known about the
dynamics of support for the major political parties.

He said no major upsets were expected with probably an exception
in Kadoma mayoral election. The Kadoma Central constituency is currently a
MDC bastion although Zanu PF won it in a by-election after the death of MDC
MP Austin Mupandawana in 2003. The MDC won it back in 2005.

The Morgan Tsvangirai-led MDC has fielded a mayoral candidate
against the incumbent, Fani Phiri of Zanu PF who has held the post since
2002.

Masunungure said whatever the outcome of the weekend elections,
it would not have a bearing on the 2008 presidential election.

Zanu PF national commissar Elliot Manyika this week forecast a
resounding victory for his party, echoing party chairman John Nkomo's
predictions in the party publication, The Voice, that they would win.

Chamisa said the MDC leadership had over the past few weeks
engaged in an intensive nationwide rural campaign to drum up support ahead
of the rural district council elections.

He said they addressed rallies in rural Masvingo, Midlands,
Matabeleland South and Matabeleland North since last week.

Masunungure said the opposition had a long way to go before it
could dent Zanu PF's rural support.

"Unless the opposition can spring a surprise, Zanu PF will
confirm its dominance in rural area in these elections. It has never
launched such a serious campaign in local elections as it did this time."


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We will spill beans: Zisco officials

Zim Independent

Dumisani Muleya

CORPORATE officials interviewed by the National Economic Conduct
Inspectorate (NECI) over the alleged looting by senior politicians at
state-owned steel-making enterprise, Zisco, have threatened to spill the
beans.

Employees of Zisco and its Botswana subsidiaries, Ramotswa (Pvt)
Ltd and Tswana Steel (Pvt) Ltd, as well as investigators of the graft at the
foreign-currency spinning parastatal, told the Zimbabwe Independent this
week that they were ready to reveal the names of top government officials
involved in pillaging the firm.

Industry and International Trade minister Obert Mpofu has
backtracked on promises to expose "underhand dealings" at Zisco.

Investigations by the Independent, including visits to Redcliff
and checks in Botswana, shows that the Zisco scandal is easily the biggest
case of high-level corruption to rock government since Independence in 1980.
Information to hand - including the names of the culprits still undergoing
verification - indicates it involves members of the state presidency,
cabinet ministers, MPs and Zanu PF officials. An editor with a local
newspaper plus company executives are also mentioned.

The NECI findings are contained in three reports, two voluminous
ones dealing with the Zisco situation locally, and the other with the
Botswana dimension to it.

Zisco is one of the largest state-owned enterprises in Zimbabwe.
Its principal activities are the production and marketing of iron and steel.
In the past it signed agreements with several British companies but recently
lost a lucrative US$400 million contract with an Indian company, Global
Steel Holdings.

The Reserve Bank said in July it had saved Zisco from closure by
providing an emergency $2 trillion (old currency) lifeline. Production at
the company had plunged by 88% from 14 200 to 1 600 metric tonnes in
February. The firm is saddled with foreign debts of over US$126 million.

Whistleblowers said they would not allow authorities to sweep
the issue under the carpet when they had provided the investigators with
detailed information which clearly established systematic looting of public
assets and attempts to use Zisco as a vehicle for self-enrichment.

"We are going to release the information when the right time
comes if they continue trying to hide the corruption at Zisco," a senior
Zisco official said. "People from NECI led by their deputy director came to
Redcliff and went to Botswana to probe the issue and we gave them all the
information. So what's the problem?

"If they believe they can manage to conceal corruption and then
blame us for what happens at the company, then they should think twice. We
will expose them sooner rather than later."

Sources said NECI officials got all the information they need to
nail those who were involved in the Zisco graft. The Independent's contacts
in Botswana said three NECI investigators visited that country from July 24
to August 3 last year to gather information.

While there, the NECI detectives went to the Grand Palm Hotel &
Convention Resort in Gaborone where government officials used to squander
Zisco money on expensive drinks and food almost every weekend.

The place, formerly the Grand Palm Hotel Casino Resort, is a
five-star hotel and is located just outside Gaborone.

"The NECI people from Zimbabwe came here and we gave them all
the information, including documents, to show who was booked here, when and
for how long," a source said.

A Zisco official said the raiding of the Midlands-based
parastatal would make all previous government graft cases "look like a
Sunday afternoon picnic when it eventually explodes.

"It is outrageous and we will make sure it is not covered-up,"
the official said. "How can government try to hide corruption which is so
brazen?"

The Zisco looting was done via bid-rigging of contracts and
awarding of large sums of allowances in forex to top government officials
and their cronies who claimed to be doing government business. Zisco also
lost millions in forex due to overpricing by suppliers.

The parliamentary portfolio committee dealing with the issue has
failed to get the NECI report on Zicso, with ministers giving excuses as to
why the report could not be released.


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Zim investment rating tumbles: report

Zim Independent

Dumisani Ndlela

ZIMBABWE'S standing as an investment destination plumbed fresh
depths in a World Bank rating unveiled in Harare yesterday, moving from 145
to 153 on an average weighted ranking of 175 countries.

The country's low rating is an indictment on government policies
as it indicated that the country was among 25 countries "making it more
difficult for businesses".

The ranking comes at a time when the country's monetary and
fiscal authorities have embarked on a whirlwind tour of mainly Asian
countries to lure investors and help turn around the ailing economy which
has suffered a cumulative gross domestic product (GDP) decline of more than
30% between 1999 and 2005.

The rating, contained in the World Bank's Doing Business 2007:
How to Reform report, used 10 criteria for the ranking of countries and
Zimbabwe scored dismally in almost all of them.

Its ranking was the worst on dealing with licences index, where
it moved a notch up to 171 on the current ranking.

Trading across borders obtained the same ranking as last year at
168, with the cost of importing a container pegged at US$4 565, while
starting a business was ranked 137, from 128 last year.

Licensing procedures take up to 481 days, while firing costs are
equivalent to 446 weeks of salaries, according to the World Bank report.

Director liability had a very low ranking at one. The highest
ranking for director liability is at 10, with the United States, where Enron
directors were recently jailed after being held responsible for the collapse
of the company, having scored 9.

Mungai Lenneiye, the new World Bank country manager for
Zimbabwe, said the ranking had not factored in issues of expropriation,
transparency in the tender processes as well as the macro-economic
environment.

Analysts indicated that these factors could have given Zimbabwe
an even more unfavourable score had they been factored into the rating.

Industries that remain in business are operating below capacity.

The report said while Africa had lagged behind all other regions
in the pace of reform, the continent this year ranked third and was behind
only Eastern Europe, Central Asia and the OECD high-income countries.

Two thirds of the African countries made at least one reform,
and Tanzania and Ghana ranked among the top 10 reformers.

"Several countries - including Bolivia, Eritrea, Hungary,
Timor-Leste, Uzbekistan, Venezuela and Zimbabwe - went backward," the report
said.


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Murerwa faces torrid time over 2007 budget

Zim Independent

Shame Makoshori

ANALYSTS said this week Finance minister Herbert Murerwa had to
devise creative strategies for increased revenue collection and impose tight
controls on government expenditure next year to curtail huge deficits.

The analysts' views come as Murerwa, who has held pre-budget
consultations this month, is preparing to unveil his 2007 budget proposals
in parliament next month.

Murerwa last week blamed the current deficit, held responsible
for stoking inflation, on hyperinflation and adjustments to civil servants'
salaries in May.

Analysts said Murerwa should refrain from overtaxing struggling
companies and workers.

University of Zimbabwe Graduate School of Management lecturer,
Isaac Kwesu, told businessdigest fiscal indiscipline in government had
generated huge budget deficits, and there was little prospect Murerwa could
rein in government spending against the background of rampaging inflation.

Murerwa presented a $327,2 trillion ($327,2 billion under the
new currency system) supplementary budget that bloated the 2006 budget to
$451 trillion, from the $123,9 trillion proposed for the year's budget.At
the time the supplementary budget was presented, most government ministries
had spent their budgets and were already in the red.

There are reports that some government departments have already
spent their budgets and are struggling to pay salaries.

Kwesu said such developments made planning for Murerwa's 2007
budget difficult, considering that inflation is projected by the
International Monetary Fund (IMF) to top 4 000% next year. In that case, any
proposal underestimating the high inflation environment is likely to miss
targets within months, creating the danger of quarterly supplementary
budgets.

"High inflation and more price increments will characterise
2007," Kwesu said.

"Murerwa must improve on revenue collection. People are watching
if he will introduce new taxes or increase the existing taxes. The bottom
line is fiscal discipline, which is lacking," said Kwesu.

"Government relies on corporate tax. But this is shrinking
because companies are closing down. Pay As You Earn (PAYE) has been affected
by high levels of unemployment. The main sources of government revenue are
drying up," he said.

Kwesu added that Value Added Tax (VAT) is dependent on consumers'
purchasing power, which has also been eroded by hyperinflation.

Murerwa has therefore little room for manoeuvre.

Government already heavily borrowed on domestic market where the
debt stock increased two fold between July and September 2006 from $50
billion to $119,4 billion due to high deficits.

Economists fear that the situation next year could spark
increased money printing, something that will further fuel inflationary
pressures in the economy.

Kwesu blamed government's poor inflation forecasts for the
continuing recession because it rendered planning difficult. Budgets are
prepared on basis of inflation forecasts and an outturn higher than
projections normally spawns a higher budget deficit.

Kwesu said government had to learn from past mistakes to avoid
highly inflationary budget deficits, the major cause of supplementary
budgets in the country.


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Govt debt for Chinese MA60s attracts US$1,8 million interest

Zim Independent

Paul Nyakazeya

A GOVERNMENT debt accrued from the purchase of Chinese passenger
aircraft has added a US$1,8 million interest bill, according to information
obtained by businessdigest.

The interest is in respect of a US$12 million debt outstanding
after the purchase of two MA60 passenger aircraft by government from China's
state-owned Aviation Industry Corporation of China (Avic) which last year.

The debt, outstanding since April, is understood to have raised
concerns the Chinese might join the league of disgruntled creditors failing
to claim back loans overdue for repayment by Zimbabwe.

Zimbabwe has received funding for projects as well as credit
lines from China under Sino-Zimbabwe deals promoted by President Robert
Mugabe's government under the "Look East" policy.

The Chinese gave Zimbabwe a third aircraft as a token of
appreciation for the purchases.

The third plane was grounded just weeks after it was handed over
to the Zimbabwean government in January.

The interest is likely to increase the stock of the country's
foreign debt, reported to have declined after a payment of outstanding
general resources account arrears to the IMF earlier this year by the
central bank.

According to details obtained from reliable sources, government
had promised to clear its debt with Avic, acquired under a financial
arrangement with the Chinese government, by the end of last year.

But it failed to fulfill its obligation because of acute foreign
currency shortages in the country, although the central bank recently
splurged huge sums of foreign cash on the purchase of vehicles for
government departments and ministries.

Air Zimbabwe spokesman, David Mwenga, refused to comment when
contacted by businessdigest this week, referring all questions to the
Transport and Communications ministry.

Transport minister Chris Mushohwe, and his permanent secretary,
Engineer George Mlilo, could not immediately give any comments, requesting
written questions.


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AirZim reacts to withdrawal of RBZ funds

Zim Independent

Dumisani Ndlela

AIR Zimbabwe became the first state-owned company to react to
the termination of central bank support by hiking airfares for both domestic
and international routes under measures the airline's spokesman said were
meant to sustain operations.

The airline hiked its fares by between 200% and 500% in a move
spokesman David Mwenga said was meant "to make the business viable"
following condemnation of the airline by Reserve Bank of Zimbabwe governor
Gideon Gono who grouped it among "non-performing parastatals".

Gono said Air Zimbabwe, together with the Zimbabwe National
Water Authority, power utility Zesa, the Grain marketing Board, the
Agricultural Research and Development Authority (Arda) and the Zimbabwe Iron
and Steel Company (Zisco) had "developed seemingly perpetual reliance on the
Reserve Bank for support, unacceptably surrendering their cash-flow planning
and survival needs to us".

Sources said key parastatals like power utility Zesa, which had
been restrained from reviewing their tariffs upwards for fear that this
could exacerbate inflationary pressure, were already pressing for a review
of tariffs to sustain operations.

Zesa, which has unsuccessfully battled poor power generation at
its plants, as well as constrained power imports, has always argued that its
problems could be solved by charging economic tariffs to its customers.

This has been dismissed by Gono and government because of the
effects of such economic tariffs on the inflationary situation in the
country, as well as potential social discontent that might arise as a result
of a significant hike in electricity tariffs.

Sources indicated that Zinwa, the water supplier in local
authorities in Harare and surrounding towns and the city of Chitungwiza, was
already seeking authority to increase its charges to survive.

A review of Zinwa's charges had been dismissed by government,
who alleged it was inflationary.

But with Gono's withdrawal of support to the non-performing
parastatals, it is expected that pressure was likely to build up against the
parastatals for an immediate review of charges to maintain viability.

It is expected that line ministries or the various parastatals
were likely to be more receptive to requests for reviews given that their
own resources are depleted and they can not subsidise the loss-making
parastatals.


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Govt domestic debt down

Paul Nyakazeya

Zim Independent

GOVERNMENT'S domestic debt declined to $119,4 billion after
reaching an all time high of $127,4 billion on September 15, central bank
figures revealed this week.

In its recent update of government's debt stock, the Reserve
Bank of Zimbabwe said domestic debt stood at $119,4 billion as at September
30, declining by $8 billion from the record touched on September 15.

Government's domestic debt consists of government stocks,
treasury bills and central bank advances.

Since January this year, domestic debt has been on an upward
trend.

Government said its borrowing had been bloated by food and fuel
imports.

The country, once the region's bread basket, has been dependent
on imports to feed its people due to disruptions caused to the farming
sector by a controversial agrarian reform as well as poor harvests caused by
draught.

Government's domestic debt opened the year at $14,1 billion and
has been consistently rising since then.

With limited or no meaningful sources of offshore support for
the budget, government has aggressively borrowed from the domestic market
where high interest rates have significant increased the domestic debt
level.

A highly inflationary environment has created huge deficits in
the national budget, forcing government to resort to aggressive borrowing.

Last year, the budget deficit out-turn was at 60% of gross
domestic product, according to figures released by the International
Monetary Fund (IMF).

Government had, however, claimed the budget deficit for the year
was a paltry 3% of GDP.

Central bank governor Gideon Gono said in July that government's
debt levels had become unsustainable.

Besides domestic debt, government holds a huge stock of foreign
debt which it has failed to repay because of foreign currency shortages.

The country's total debt disbursed and outstanding (including
arrears)currently stands at US$4 billion.


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Vic Falls airport to undergo facelift

Zim Independent

Shame Makoshori

THE Civil Aviation Authority of Zimbabwe (Caaz) is expected to
start refurbishment and expansion of the Victoria Falls Airport at a cost of
close to $1 billion, businessdigest established this week.

Caaz chief executive officer David Chawota said this week his
organisation would soon issue a tender for the refurbishment and expansion
of the airport.

The tender will be valued at $600 million, Chawota said,
refusing to give additional costs.

Chawota said Caaz had already contracted a company that had
already begun clearing land at the airport ahead of the planned expansion
programme.

"Contractors have moved on site to start clearing the ground and
carry out the enabling work before the actual contraction of the runway
begins," Chawota said.

"We will soon be going to tender to invite bids for the actual
construction of the runway. We expect the company that is clearing the land
complete by the end of the year."

Last week, government injected $600 million for the project,
part of a programme meant to spruce up the image of old airports around the
country before 2010. Completion of the expansion programme is expected
before 2010 when South Africa hosts the soccer World Cup.

President Robert Mugabe's government has indicated that it would
want to take advantage of increased tourist traffic during the hosting of
the World Cup in South Africa.

Tourist arrivals have declined significantly from a peak of 2
250 000 in 1999 to 1 560 000 in 2005 as a result of an unstable political
and economic environment in the country. Victoria Falls International
Airport was opened in 1966. It had had a number of refurbishments over the
years.

The last refurbishment was carried out in 1990.

After the completion of the current expansion and refurbishment
programme, the existing building will become the domestic terminal.

The Victoria Falls airport is a key port of entry for tourists
visiting the Victoria Falls by air.

It handles one domestic and four regional scheduled flights
daily as well as commercial non-scheduled and private charters.

Caaz projects that after the expansion and modernisation of the
airport, it will attract larger airlines with bigger planes. This will
increase accessibility to the resort town by international tourists.

Several airlines had previously indicated willingness to fly
tourists directly to Victoria Falls but had been inhibited by the size of
the airport.

Caaz has also carried out expansion and refurbishment programmes
at the Harare International Airport and similar work is underway at the
Joshua Mqabuko Nkomo Airport in Bulawayo whose commissioning is scheduled
for December.


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Challenging Zanu PF's structures of power

Zim Independent

By Alex T Magaisa

FUNDAMENTAL questions that occupy the minds of most people in
Zimbabwe and beyond who have been frustrated by the economic decline and
increasing poverty are whether it is possible to replace the ruling Zanu PF
and, if so, how that is possible in the face of failures of the commonly
employed methods.

Such approaches, ranging from participation in elections to mass
stayaways and street demonstrations have largely proved ineffectual in
recent years. Despite the visible decline, Zanu PF appears more entrenched
and despair has taken over where once there was hope and expectation.

It appears to me that one of the weaknesses in approaching the
challenge has been a generalisation of the issues at hand, which has led to
the adoption of general and predictable methods and a failure to explore
alternatives. The challenge has been framed as one of taking political power
from Zanu PF without however posing to explore and understand the nature of
Zanu PF's power. "Political power" has been defined generally and taken for
granted yet in reality the nature of political power is multifaceted and
more complex.

Understanding the nature of Zanu PF's power is critical because
it allows an avenue to see its strengths and weaknesses and also open up
space for new alternatives. The question therefore is: from which sources
does Zanu PF draw its power?

Having applied my mind to these questions, I have resorted to
the work of Susan Strange, one of the major voices in international
political economy. Almost 20 years ago, Strange brought great insight, in a
book titled States and Markets, into the nature of power within the
international system.

Power itself is defined simply as one's ability to impose
his/her will on others regardless of their wishes/interests. Strange
identified two kinds of power: first, relational power, which is the power
that one wields to get another person to do something that they would not
otherwise do, and second, structural power, which is the power to shape and
determine the structures within which others operate; the power to set the
agenda and decide how things are done.

It is important within this context to understand how Zanu PF
uses structural power in the way it sets up the framework in which
individuals and entities including political parties and corporate
enterprises operate and relate to each other within the political and
economic landscape. It is understanding the nature of Zanu PF's structural
power that is the focus of this article.

According to Strange, there are four key sources of structural
power, namely production, finance, security and knowledge. Put simply, the
proposition is that structural power reposes in those that are able to:
exercise control of people's security; make decisions and control the manner
of production for survival; control the financial architecture, ie supply
and distribution of finance; and, control the definition, development,
dissemination, storage of and access to knowledge broadly defined to include
information, ideas and beliefs.

Production is probably the most commonly known source of
structural power. Marxists having long argued that power reposes in those in
control of the means of production. The ones that decide the mode of
production and control production levels necessarily have the power over
those with an interest in accessing the means and items of production. They
seek to strengthen and defend their position and establish rules and
institutions to create enclosures that others cannot challenge.

It is within this context that we can see Zanu PF's strategy in
relation to land reform and lately other areas of production such as
industry and the mining sector. Zanu PF knew that in an agro-based economy,
it lacked sufficient control of the production structure.

Instead, the commercial farmers with greater control of the
production structure appeared to favour the new opposition party, the MDC.
It therefore became necessary to break this pattern to avoid having the
power from the production structure residing with the MDC. To be fair, Zanu
PF probably had illusions that the transition from the old to the new
farmers would be smooth but as we now know, these illusions were without
foundation.

Zanu PF's power arising from the production structure would have
been greater today had agricultural productivity been maintained at the
pre-2000 levels. But this did not materialise and while it controls the
means of production, its power from this structure is actually weak because
of low productivity. The only reason why it is important is that it has
managed to deprive others of the opportunity to draw power from this
structure because of its monopoly that is supported by a strong security
structure.

I would also point out that it is within this context that we
can understand Zanu PF's desire to assume greater control of the mines and
is hard on the local industry, setting the prices of essential goods and
therefore levels of production and also its active participation as a
shareholder in local industries.

But it is also important to realise that people are not without
power. For example, while an employer draws power from his control of the
production system on which employees depend for employment and livelihood,
employees can whenever they feel the employer has abused his power, withdraw
their labour or engage in other action that forces the employer to meet
their demands. We have seen however that mass stayaways, strikes or similar
action do not seem to have had the desired effect on Zanu PF power.

This is probably because power from this structure is already
weak anyway as there is no real production to talk about and so Zanu PF
couldn't care less. Withdrawing labour does no more harm to the power from
the production structure, which is already weak. Zanu PF has nothing to lose
in this respect. It would be different however if people engaged in other
parallel forms of production, hereby creating a parallel structure from
which they draw power but Zanu PF has no control. However positive action
such as this is difficult where Zanu PF can deploy power from the security
structure.

The finance structure consists of control over finance,
generally defined. This involves the control and availability of credit and
other financial facilities. Its influence is more defined in advanced
economies but is generally important because it affects the power arising
from other structures - production, knowledge development and security. The
old adage that he who has wealth has power applies with equal force in this
case.

In Zimbabwe we can see the manifestation of Zanu PF's power from
this structure in its tentacles spread across the financial sector,
especially major local banks. It can also be seen in the Reserve Bank's
forays into retail banking (under the cloak of temporary "operations") -
becoming a principal source of finance for industry and agriculture and a
key player via institutions like ZABG. Private institutions have been
forcibly taken over or sidelined by the all-powerful RBZ and in the process
Zanu PF is effectively assuming control of the key sites of the finance
structure thereby seeking to enhance its power.

A question is not often asked - why are there people who appear
to support Zanu PF despite its failings? They are often dismissed as
ignorant and mostly rural folk. People or entities that toe Zanu PF's line
do so not necessarily because they believe in its ideals but only because by
doing so they secure access to facilities within Zanu PF-controlled
financial architecture. They do so because they depend on it - if they had
an alternative they probably would not toe the line. But looked at another
way, if they chose to reject it they would be creating their own parallel
source of power. In this context, the parallel market is no more than a
refusal to succumb to the power of the Zanu PF-controlled financial system.
If all the funds circulating in the parallel market were in the formal
system, it would greatly enhance the power of those in control of the
finance structure.

Then there is the old saying that knowledge is power. It simply
means that those who are able to define and control the development, use,
dissemination and access to knowledge have important structural power. The
control of knowledge involves withholding certain kinds of knowledge from
people thereby keeping them ignorant or feeding them certain kinds of
knowledge that favour the controller.

Knowledge also affects the other three structures - in terms of
enhancing or decreasing security, technology for finance and also for
production. By 1990 Zanu PF had already increased attempts to control the
knowledge structure by enhancing control and interference with academic
freedom at universities via the notoriously controversial University of
Zimbabwe Amendment Act. The same efforts can be seen in the control of
syllabi of key subjects that teach liberation history and also increasing
attempts to take control of the private education sector.

Similarly, re-education programmes and the national youth
service constitute attempts to control knowledge - the spread of ideas that
support a certain position.

More importantly, Zanu PF has maintained control of power
arising from the knowledge structure through a system of closure or
withdrawal of knowledge. This is the context in which we can understand the
media monopoly of the Zimbabwe Broadcasting Holdings, the threats and actual
acts of violence against the Daily News culminating in the continued refusal
to issue a licence, the dominance of Zimpapers.

The question therefore is whether those that oppose Zanu PF's
ways have any strategy aimed at breaking this source of power? The question
knows what sustains the vehicles through which knowledge is developed and
transmitted. The party mouthpieces need revenue from advertisers and
subscribers but how many among these potential advertisers and subscribers
are unwittingly keeping it afloat?

The security structure is probably the most important of all
structures from which Zanu PF draws power. The fact that this is a strong
structure of power for Zanu PF should not take away attention from the other
structures which have their own weaknesses that can be exploited. The
security structure cannot operate on its own, it requires the other
structures and hence it is often deployed to ensure that the other
structures of power remain in existence.

As we have seen, power derived from the security structure can
also be used to support other structures, for example using coercion of the
youth militia to promote certain ideas and beliefs, using the police force
or army to confiscate funds held by individuals, and failing to provide
security to farmers when threatened with violence during the land invasions.
The most brutal use of power from the security structure to coerce
obedience and compliance was the deployment of the notorious
Fifth Brigade in Matabeleland under the guise of suppressing dissident
activity.

It stands to reason therefore that securing power does not lie
in the realm of elections or mere demonstrations but measures that
neutralise the power drawn from the security structure. Given the nature of
the Zimbabwe state and the historical circumstances of its birth it is no
surprise that the centre of power lies in the security structure. Any
attempt therefore to win power requires ways of getting some of that power.

An opposition movement needs some measure of support emanating
from within this structure, in order to draw the necessary power.
Penetrating the security structure could involve making oneself relevant to
the agenda and interests of those that form part of the security structure.
This is not easy but also not impossible. The MDC tried it when some
legislators allegedly tried to woo top military personnel a few years ago,
though their attempt was probably awkwardly executed and therefore failed.

What emerges from the above is that instead of talking of Zanu
PF's power in general terms, it helps to dissect its structures in order to
understand more precisely its strengths and weaknesses, by understanding its
sources of power. Conversely, this helps to unravel the various options and
avenues available to those that seek to challenge its power.

When people have talked about its superior power, they have
largely referred to its power arising principally from the security
structure. They have not specifically considered its power arising from
other structures and the weaknesses that lie therein. When considered in
total, it is easy to see that because of the weaknesses in other power
structures, they have had to be propped up by the security structure.

Notwithstanding the immense power from the security structure,
it is also important to realise that power is reciprocal. It may not be
equal reciprocity but the fact remains that one's power is relevant only to
the extent that he controls things that are required by other people.

In return for their desire for security the people cede power to
those that are able to offer security. Conversely, once that security
becomes a threat or is no longer available, people no longer require it and
may therefore seek alternatives.

The history of Zimbabwe itself is testament to this fact. When
the liberation parties realised that the security offered by the Rhodesian
Front was not in their best interests but had instead become a threat to
their freedoms, they decided to reject that form of security and create an
alternative source of their own.

* Alex T Magaisa is a lawyer based in the UK.


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Already battered economy suffers another blow

Zim Independent

Shakeman Mugari

POLICE last week intensified their crackdown on the business
sector, arresting private-sector executives for allegedly increasing prices
of basic commodities without approval.

The campaign, which triggered fears of a witch-hunt in the
business community, also claimed a senior government official who was
arrested for allegedly approving bread price increases without government
authority.

There are indications that the arrests, which analysts say are
part of government's renewed drive to use price controls as a political tool
to win hearts and minds, have become a fresh ground for political struggle
in Zanu PF currently split over the succession issue.

Analysts say the business leaders are becoming pawns in the
political chess game that has become dirty. Confusion reigns in government
with revelations last week that the crackdown was carried out against
Vice-President Joice Mujuru's assurance to business leaders last month that
no one would be arrested or harassed.

Industry and International Trade minister, Obert Mpofu,
professed ignorance saying he was not on top of the price controls issue and
alleged that a "third force" instigated the arrests of business executives.

"We are really not involved in the pricing issue. It is them in
industry who are in charge and government is not in control. We don't know
what is happening. Talk to them (businesses) about the arrests, they know
better," Mpofu told this paper last week.

What is however clear is that government is seriously thinking
of coming up with all-encompassing measures to control prices.

Over the past six months there has been a systematic trend which
shows that government is becoming increasingly repressive and intolerant
towards the business community.

President Robert Mugabe has on numerous occasions registered his
anger toward businesses that hike prices of goods.

There are now concrete signs that government is planning a
far-reaching project to control prices of basic commodities despite Mpofu
claiming otherwise. Similar controls have failed in the past.

A confidential document in possession of this paper shows that
Mpofu's ministry is heavily involved in what is called the "Price
Stabilisation Committee" whose role will be to control and monitor prices of
basic commodities. The document says that a representative from the Ministry
of Industry and International Trade will chair the committee that will be
charged with the role of approving prices of basic goods.

A representative from the private sector will be the deputy
chair of the committee, says the document, compiled by Mpofu's ministry. It
states that companies that want to increase prices will have to seek
approval from the committee, which will make a decision by consensus.

"For the three controlled products, the committee will submit
their recommendations to the Minister of Industry and International Trade
for tabling before the National Economic Recovery Council (NERC) and
Cabinet."

The committee means that government wants to have control over
prices in almost every sector.

Analysts say the new measures are a sign that government has
failed to revive the economy and would want to divert attention by giving
the impression that they are doing something to protect poor people by
reintroducing price controls. The new measure marks the return of the price
controls, which caused massive shortages of basic commodities when they were
introduced in October 2003.

The price controls gave rise to the black market that thrived on
people who offloaded basic commodities out of the formal onto the informal
market to beat the controls. Thousands of people lost their jobs as
companies were forced to downsize because of the controls. Analysts say the
government seems to have learnt nothing from the destructive effects of the
controls which economists agree fuel the black market and inflation.

Economic consultant Daniel Ndlela said price controls would not
work and they have never worked anywhere. He said the government is refusing
to accept the international trend that show that price controls cannot be
used as a tool to revive an economy.

"They have never worked anywhere but here it's worse because
they are forgetting other economic fundamentals like foreign exchange rates
and interest rates which they are not controlling," Ndlela said.

Ndlela said it was "dangerous and misleading" for government to
control the price of say bread on the pretext that the bakeries are getting
wheat from the Grain Marketing Board at a cheaper prices.

"They are working under the dangerous notion that the end price
of a loaf of bread is a function of wheat only. They are conveniently
forgetting that there is labour, financing cost, spare parts and fuel which
the bakeries are getting at the parallel market rate."

The sad reality is that distortions in the market have resulted
in the current situation where there is more than one price for things like
foreign currency and fuel.

The government insists that fuel costs $320 per litre but
businesses can only find it at more than $1 000. The official price of the
United States dollar is $250 but business is sourcing it at $1 400 because
of the scarcity in the market.

While some privileged companies access the cheap capital from
the Reserve Bank of Zimbabwe at around 20% per annum, others get the money
from the market at rates of 350%.

These distortions in the market are a result of the same price
controls that government is planning to reintroduce.

A new wave of price controls could only lead to more shortages
and company closures while they exacerbate the economic crisis.

Perhaps the sad irony is that Zimbabwe seems to be going back to
the policies that its friends in the East like China and Russia have thrown
in the dustbin. China, Zimbabwe's celebrated ally, tried it without success
from 1949 to 1979, before it started moving towards a free market.

China used to control the price of almost everything from
foreign currency to rubber shoes and TV sets.

In extreme cases people found with foreign currency were put
before a firing squad. The Soviet Union under the communists tried price
controls for almost 60 years before they realised they don't work.

"It's clear that the world is moving toward market-determined
prices," said Ndlela.

"As soon as China allowed the market forces to take charge their
economy started growing. Why Zimbabwe has not learnt from China is amazing."

Other analysts say the new price controls are a sign that
government has lost the war against inflation and wants to shift the blame
to manufacturers.

Economic commentator Eric Bloch said price controls will sound
the death knell for businesses that are already battling with massive
inflation, lack of foreign exchange and the general collapse of the economy.

They will lead to more company closures.

Bloch said government was desperate for political survival and
has turned the heat on businesses to give the perception that they are for
the people.

"The problem is that they (government) know that controls will
not work. They are trying to save the political establishment by peddling
such populist policies to give an impression that they are in control when
in fact they are not at all," Bloch said.

On a broader scale it is clear that there is no consensus in
government on the way forward with regard to the controls.

"There are people in government who know that these policies
will not work but will never speak out because they are too afraid of
offending President Mugabe," said economic commentator John Robertson.

"For instance Finance minister Herbert Murerwa last year spoke
strongly against price controls but has not gathered the courage to push for
their abolition. During a parliamentary portfolio committee hearing in
September last year Murerwa said price controls were causing distortions in
the market.

"We should move away from price controls. They do not help. It
is some of these policies that are creating additional distortions," Murerwa
said.

"We are in a globalised village. There is no country (in the
world) that tinkers with this kind of thing."

Mugabe has shown in his speeches that he is a staunch supporter
of price controls. The irony is that Zimbabwe is returning to discredited
and damaging policies just as it has signed up to a regional protocol on
free trade and investment.


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NEDPP meets inevitable fate

Zim Independent

Comment

ZANU PF MPs have presented us with useful disclosure on the
state of the National Economic Development Priority Programme (NEDPP) which
government told us was a quick-fix plan to extricate the economy from its
current woes.

At its inception, Vice-President Joice Mujuru said NEDPP was a
temporary plan aimed at stabilising the economy through strategies that
should improve food security, increase foreign currency generation, boost
investor confidence, reduce unemployment and reduce both foreign and
domestic debt.

At the Confederation of Zimbabwe Industries Congress in Bulawayo
in August, Mujuru said the programme was beginning to bear fruit although
she was hard-pressed to demonstrate the gains.

On the foreign investment and foreign currency generation front,
central bank governor Gideon Gono has told us that details of the deals are
confidential. It takes a huge leap of faith to believe that there is
anything behind this official subterfuge.

What is very clear though is that the original plan, designed to
raise US$2,5 billion, has failed. Economic Development minister Rugare Gumbo
admitted at a pre-budget seminar that the programme was on the ropes.

"The problem with the NEDPP is that it came as an emergency to
solve the economic crisis facing the country and I agree that we failed to
manage it and therefore it did not bear the desired fruits," he reportedly
said.

"We are human beings and we make mistakes," Gumbo said.

This was in sharp contrast to the optimism generated in
state-media circles at the time of the programme's launch that it was a
panacea which would lead to a complete "turnaround" of the economy.

More pointed attacks on the wonder programme were launched last
Thursday, significantly by Zanu PF MPs, at a parliamentary portfolio
committee meeting at which they quizzed senior officials in Gumbo's
ministry.

Senator Tsitsi Muzenda wanted to know if the NEDPP "is the best
programme because we are good at presenting papers. People out there are
crying because the price of fuel is going up and there is no bread in the
shops".

Bikita West MP retired Col Claudius Makova saw no difference
between NEDPP and past economic programmes.

"How far have we gone in the achievement of the objectives of
the programme?" he asked. "We have moved from programme to programme and are
you saying this programme is a better programme from the ones we have
embarked on, but haven't achieved much?"

The observations by the Zanu PF MPs point to the fact that the
programme has run into troubled waters. Their views undoubtedly resonate
among other senior leaders who have seen through the delusional ruse that
the economy could be turned around in six months.

In May, the government said it required three to four months to
implement the programme and an extra month or so to tie up the loose ends.
We immediately raised the red flag and warned that this was another journey
into infantile self-deception because the task at hand was too great to be
wished away in three months.

The government's thought police were quick to label those
exercising healthy scepticism as detractors, or saboteurs even. We said at
the time there was no prospect of such a programme succeeding so long as the
macro-economic fundamentals remained so badly skewed. These included runaway
state spending and disruptions on the farms.

We have been vindicated. The anxiety about the failure of the
programme is now coming from within Zanu PF itself.

Remarkable also is the fact that the attack on NEDPP is coming
at this late hour in the implementation of the programme. This is a time
when Gumbo, Makova and Muzenda should have been celebrating the achievements
of NEDPP and parading its gains. What happened to the US$2,5 billion target?
How much was actually raised?

Meanwhile, as the programme festers under the dead weight of its
unreformed bureaucracy, policy inconsistencies and outright recidivism by
the state, political hawks in the party have grabbed the initiative to use
the plan as a platform for their power play.

The total confusion at the Industry and International Trade
ministry over price controls illustrates this. The programme is now in the
clutches of powerful politicians who have no interest in putting the economy
right, as the assaults on the business community show, but are instead
focused on political manoeuvring. To say the programme should be
discontinued would be to assume there was a plan in the first place. The
inevitable has happened.


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Partying a trifle too early

Zim Independent

Editor's Memo

By Vincent Kahiya

PRESIDENT Mugabe has finally signed the Sadc Protocol on Trade,
Finance and Investment and government spin doctors were immediately
unleashed to convince us that the protocol would increase investment and end
our misery.

Government could have celebrated too soon because convergence
does not occur at the drop of a hat. It is a painful process that requires
governments to look beyond their borders when they make policies. This is
easier said than done.

Regional leaders have a lot to learn from the steps taken by
Europe towards the introduction of the euro. EU members adopted a set of
criteria agreed to in the Maastricht Treaty. The shift towards a common
currency implied that a set of credible measures had to be agreed and
implemented by all countries in order to coordinate policy and achieve
economic convergence in the bloc. This was a long-drawn process which worked
in the end because member-states were committed to reform to align their
policies with the Maastricht Treaty.

In the mid-1990s the Common Market for Eastern and Southern
Africa (Comesa) excitedly flirted with the idea of a common currency to be
used as legal tender in an envisaged free trade area. The initiative was
dead in the cot as a number of factors militated against the thrust; mainly
failure by member-states to achieve convergence in stability indicators such
as inflation, debt servicing ratio of forex earnings, budget deficits, broad
money supply growth and levels of central bank funding to the central
government.

Achieving convergence in these key indicators remained a dream
as member-states were involved in wars and many were at various stages of
implementing structural reforms or dropping them. The quest by the region to
establish a free trade area and monetary harmonisation failed because the
implementation of the plan was largely premised on the fiction that holding
conferences and authoring voluminous papers on the subject would provide the
glue to bind the states together.

The same kind of naivety could be befalling the Sadc region,
most of whose members are very familiar with the Comesa flop because they
were active participants in the slow death of the plan. The regional leaders
have given themselves until 2008 to come up with a free trade area, a
customs union by 2010 and a common market by 2015.

The idea of the Sadc protocol is to raise the profile of the
region as an attractive investment destination and to harmonise trade.

Leaders meeting in Midrand, South Africa, this week said their
mini-summit was to map the way forward in achieving this evidently arduous
task. Missing in their roadmap to achieve real regional integration and
bringing down barriers to trade is a key ingredient-political stability in
individual member-states.

Chances of real economic convergence in Sadc can be enhanced if
Zimbabwe, which currently sits in the centre of the region like a failing
heart, is committed to reform which will put right the current regime of
shameful indicators.

The indicators are out of kilter with regional standards. The
region also appears powerless to address poor policies in Zimbabwe. There
are price controls on basic commodities and government is pushing for
damaging indigenisation laws in which it wants to expropriate mines and
industry. The state has a monopoly on the trade of grain and other
agro-products.

The land reform programme, the genesis of dissonance in
Zimbabwe, is far from being concluded even when government has maintained
the ruinous plan is over. Worse still, there is a concerted attempt by
Zimbabwe to export its version of land reform to the region.

The current protectionist mindset of the Zimbabwean government
is at variance with the spirit of free trade. As is the case with Zimbabwe's
"participation" in the Nepad initiative, the country would very willingly
tag along with others for the purposes of solidarity with no real benefits
accruing to us.

If anything, Zimbabwe has worked to diverge from the grouping
economically. There is no evidence to suggest that Zimbabwe belongs to any
convergence club in the region and President Mugabe's colleagues are well
aware of that.

Sadc chair and Lesotho premier Pakalitha Mosisili at the summit
almost told us what we already know about the contagion effect Zimbabwe has
in the region.

"... We should not be seen in the light of just the one member
state out of 14 (so) that people will use that as a pretext not to invest in
our region because one member of the family is 'unacceptable' to them," he
told reporters.

"That is unacceptable to us. We are saying we need to be seen in
total as a region, instead of the outside world singling out the one member
and saying because of member X we will not invest in Sadc."

Then what PM? Those uncomfortable questions about Zimbabwe will
be raised by any would-be investor. So the attitude of the region is to tell
investors that "Zimbabwe is one of our not-so-well-behaved cousins and there
is nothing we can do to reform him. As investors you have to put up with his
attitude."

Somehow, we don't think that response will prove sufficiently
alluring!


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Who woke up Munacho Mutezo?

Zim Independent

Muckraker

WHO woke up Engineer Munacho Mutezo? The Minister of State for
Water Resources and Infrastructural Development was having a nice long nap
when suddenly he woke up and started waving his fists around.

Nobody had heard of him before that!

Addressing a police passing out parade, he said the police
should safeguard government's "achievements" since Independence. These
"achievements" presumably include the Kunzvi Dam that was never built and
the Tokwe-Mukosi Dam that after nine years is still not complete.

Other "achievements" include 80% unemployment, a moribund health
system, and a toxic economic climate that has driven three million
Zimbabweans to seek a better future with the "Western imperialists" Mutezo
castigates.

Exactly how the police are expected to safeguard these
"achievements" is a mystery. But perhaps what he meant was more in line with
what President Mugabe said in Cairo recently when he appeared to endorse
police violence against ZCTU demonstrators. Mutezo referred to "fly-by-night
imperialist agents" who were "bent on destabilising our country and
effecting regime change through unwarranted subversive activities and
contrived demonstrations backed by the West".

The security of the nation came first, Mutezo warned. "Our
security forces would not fold their arms while they (imperialist agents)
destroy properties and infrastructure that the government painstakingly
constructed since 1980."

As most of that infrastructure is now in a state of advanced
decay it would be difficult for anybody to "destroy" it. And what evidence
does the minister have of "subversive activities" by "imperialist agents"?
The last time the state tried to make a case against people in Mutare it was
thrown out of court with a strong judicial rebuke to the state agents
responsible for cooking up such charges and arbitrarily arresting people.

Should a minister presiding at a passing out parade of police
officers not be reminding them of their duty to uphold the rule of law;
reminding them that Zimbabweans have rights that need to be protected from
the depredations of paranoid and petulant politicians whose approval of
state violence has given Zimbabwe a terrible reputation for misrule and
repression?

That's what Mutezo should be doing, not parroting the facile
mantras of his malevolent master. When Mutezo has actually achieved
something in his job he might be in a position to speak out on public
occasions. Until then we suggest he goes back to sleep.

Mutezo spoke of a peaceful nation where "the citizens cooperate
with the government".

Evidently, citizens have been letting the government down by not
cooperating with it. They will need to be shown the error of their ways so
that in future they are more cooperative. The government clearly expects the
police to give a lead in this regard.

Mutezo congratulated the police for their role in Operation
Sunrise.

"The ZRP is challenged with the sole mandate to enforce
government policies and ensure compliance by all stakeholders," he said.

"Enforcing compliance" are the key words here.

Former Botswana President Sir Ketumile Masire has published his
autobiography which provides useful insights into what our neighbours think
of us, VOA radio reports. Masire refers to the "political and economic
destruction of Zimbabwe" in recent years. He speaks of the "persecution of
many Africans and the destruction of the capacity of the economy to
function".

The ex-president's book, titled Very Brave or Very Foolish:
Memoirs of an African Diplomat, was published by Macmillan in Gaborone to
coincide with the recent 40th anniversary of Botswana's Independence. Masire
says that his relationship with President Mugabe was chilly from the start
when Botswana maintained a close relationship with Joshua Nkomo, Mugabe's
rival in Zimbabwe's liberation struggle.

Mugabe "appeared to mistrust us", Masire writes. The author says
he hoped relations would improve once Zimbabwe had secured its Independence,
but says those hopes were dashed when Harare imposed duties on imports from
Botswana in what he calls "a violation of our free trade agreement".

Historian Jeff Ramsay, who is also press secretary to Botswana's
current President Festus Mogae, said Masire's book is one of the first
accounts of the liberation period from a senior participant. Attorney
Tafadzwa Mugabe of Zimbabwe Lawyers for Human Rights told VOA that the
criticism from Masire is welcome - but comes when the damage has been done.

Muckraker is pleased to see the Law Society of Zimbabwe
responding to allegations made by Tafataona Mahoso. By publishing it
prominently on its op/ed pages, the Sunday Mail offered a stark contrast
between the rational and measured tones of the LSZ's piece and the maladroit
nationalist posturing that characterises Mahoso's peripatetic column. But
the Sunday Mail does itself no service by allowing youngsters on its staff
to write in defence of Aippa. This simply confirms the widely held view that
some people posing as journalists are in fact state public relations
officers. Defending the arrest and prosecution of their colleagues in the
independent press for the imagined offence of "abusing journalistic
privilege" is not a career-enhancing move and exposes them to charges of
professional castration.

But they did make one significant concession in their fumbling
piece.

"The LSZ and its colleagues have never bothered to educate their
constituents of the good embodied in Aippa," they wrote, "to the worrying
extent that the rest of the populace now view it in the same blinkered
perspective - a draconian piece of legislation."

So, some progress there!

And while we would congratulate the LSZ on exposing Mahoso's
factual errors, the legal body needs editorial help when listing its
functions. Sometimes less is better, a point that Mahoso never seems to
grasp. But he did provide us with a laugh over his claim that Zimbabwe was
winning the image war. Does it seem like that? Anyway, for that to happen he
has got to know what he is talking about. It would be useful for instance to
know the correct name of the independent newspaper that appears on a Sunday.
It is not called the Sunday Standard. And has he ever been to Cape Town?
Afrikaner accents are not common in that part of the country and that great
block of granite is not called Table Bay Mountain, it is called Table
Mountain!

It is this sort of carelessness and ignorance that isolates
Mahoso from those he seeks to lecture in his African Focus column. The image
problem will remain so long as people like him speak for the regime.

The land reform programme, declared officially over in August
2004 by President Robert Mugabe, is still yielding a grim harvest.

This week the Herald reported that the sons of Sunday Mail chief
reporter Emilia Zindi had allegedly murdered Lameck Wonder and tried to
conceal the deed by burning and then burying his remains in a shallow grave.

Zindi is the proud owner of Hippo Valley Farm in Chegutu where
the incident took place. Emilia's sons, Mike and Misheck, reportedly beat
and killed the guard at their farm after he told them an electric
switchboard and a water pump had been stolen.

Emilia is one of many prominent beneficiaries of the often
violent land reform programme during which a number of white commercial
farmers were murdered in cold blood, one of them abducted from a police
station and shot. Emilia is among High Court judges, senior army, police and
CIO officers feasting from this presidential largesse.

A niggling question is how can somebody so badly compromised be
expected to report fairly on the conduct of such an enterprise? How can such
a reporter comment objectively on government policies and failures?

More than that, there were reports recently that Emilia had
commandeered a tractor ferrying oranges to Chegutu and claimed them as her
own. We would love to be enlightened by MIC chair Mahoso on the impartiality
of such embedded journalists.

We notice that Air Zimbabwe has increased its airfares by more
than five times with immediate effect. Just over night people travelling to
London and back must be ready to part with $1 865 000, up from $358 310.

This was perhaps in response to Reserve Bank governor Gideon
Gono's recent announcement that he would no longer give cheap money to
non-performing parastatals. The irony is that the increase was allowed the
same week that managers of several retail shops and wholesalers were
arrested for raising prices of certain commodities "to cover operational
costs". What's going on here?

There is another interesting fact. The trip to London in British
pounds is reportedly around £600. The official exchange rate for the pound
is fixed at an arbitrary $465 in local currency. Yet the new fare of $1 865
000 suggests an exchange rate close to the black market at $3 000 to £1.

Let's hear no more unctuous complaints about the black market.
It's now official.

Agriculture minister Joseph Made has reportedly read the riot
act to Arda. The Herald on Tuesday quoted Made telling Arda senior managers
that those not prepared to work should leave.

Made is reported to have complained that Arda had failed to
increase livestock and crop production because managers spent most of their
time in their offices.

"Time should be spent on the estates and as government we will
not accommodate failure.We will not accept any excuses for failure,"
protested Made.

Made spent many years as head of Arda and should know what he is
talking about. If wasting time in the offices doing nothing is the culture
he fostered over the years he should not expect that to change over night.
If he has since changed, let's see the heads roll.

In a lighter note, Muckraker was amused to hear about the recent
visit of the Russian trade team. Many proved to be shady operators who
couldn't believe their luck. Our informants say they were offered a very
generous package of perks to see Zimbabwe and experience our hospitality.
Some members of the delegation, which included journalists, took this offer
literally and did rather more experiencing than they could afford. They were
particularly keen to film our local talent and demanded "close-up" shots, we
are told.

But very soon the per diems ran out and, amidst angry and noisy
scenes unprecedented at the venerable city-centre hotel, fuelled by torrents
of Vodka, the police had to be called. We are not sure exactly how the
matter was settled except to say the Russians saw quite a lot of Zimbabwe
and its friendly people and have many "Kodak moments" to show their friends back home.


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Price control insanity prevails

Zim Independent

By Eric Bloch

"THERE are none so deaf as those who will not hear". If that is
so, the Zimbabwean government must be the "deafest" of the deaf, for it
obdurately fails to hear whatsoever it does not wish to hear. A key case in
point is whensoever anyone has the temerity to advise government to abandon
its policy of a command economy, and especially so if the advice against
autocratic economic domination relates to the destructive consequences of
price controls.

Although this column has previously addressed the foolhardiness
of price controls, the recent insane pursuit of enforcement of those
controls dictates a revisit to the issue, albeit that government so
dogmatically adheres to its authoritarian rule of the economy, that, despite
the irrefutable evidence of the resultant demolition of the economy, it will
undoubtedly do naught but further intensify the controls, and even more
vigorously seek to enforce compliance.

For more than a century, any country that has sought to impose,
and enforce, price controls has achieved nothing other than to worsen their
economies, inflict greater hardships upon their populations, and massively
fuel inflation. That was the case in Russia ever since the communist
revolution led by Marx and Lenin, and throughout the despotic rule of
Stalin, as also in the many countries that, over the years, constituted the
Soviet Union, prevailing until the dissolution of that Union and the era of
glasnost. Thereafter the economies of those countries progressively
recovered, not solely because of the ongoing minimisation of price controls,
but also diminution of other excessive economic restraints and directions.
The same were the experiences of China, Cuba, Argentina, Bolivia, Tanzania,
and many, many other countries.

Government's motivation for the imposition of price controls,
and its presently ongoing wave of arrests in order to enforce compliance
with the controls, is undoubtedly driven primarily in order to divert the
focus of the economically oppressed population from the fact that it is
government that has progressively destroyed the economy. For a long time the
country's rulers have been able to blame, even if spuriously, Tony Blair,
the European Union, George Bush and USA, whites in general (commercial
farmers in particular), political opponents non-existent sanctions, and many
others. But it is fast running out of scapegoats to blame and, with
inflation in excess of 1 000% per annum, and almost all anticipating it to
rise further, and very markedly, government seeks to save itself, and its
image with the Zimbabwean masses.

To do so, it has no qualms in alleging, even if without
substance, that inflation has been caused by wide-ranging profiteering and
exploitation by manufacturers, importers, wholesalers and retailers. And, to
demonstrate its love, care and concern for the increasingly poverty-stricken
people that it governs, government has turned to intensive actions against
all those that have not complied with its oppressive, unrealistic, and
disastrous price controls. It has resorted to numerous arrests, nationwide,
with especial focus upon those who sell essential commodities such as bread,
sugar, milk, maize meal, and cement. In many instances, pursuing its tried
and proven tactic of effecting arrests on the eve of weekends, so that that
those arrested would have to spend 48 to 72 hours in jail before obtaining
remand, pending trial, government has used the law to circumvent the intents
of the law for justice and equity.

The result has been inevitable. As the controlled prices of the
products have not been realistically assessed, and as they do not move in
alignment with inflation, more and more of the products cannot be produced,
or marketed, without sustaining loses. It is naivety in the extreme to
expect producers to produce goods at costs which exceed the prices at which
they are permitted to sell them.

Doing so is a guaranteed path to bankruptcy. In like manner,
retailers cannot afford to sell goods at less than the combined cost of
their purchase of those goods, and of selling them. The retailer, as with
the producer, is confronted not only by the direct costs attributable to the
commodity, but also to a myriad of other costs (almost all of which are
presently rising continuously), those costs including salaries and wages,
rents, electricity, insurances, financing expenses, and numerous other cost
factors. If the commodities cannot be sold for amounts which will recover
both the direct and indirect costs, losses are the unavoidable result,
ultimately causing the failure of the businesses, with all concomitant dire
consequences upon the owners of the businesses, but also upon all other
stakeholders, including employers, suppliers, customers, and the state
itself.

Of course, no businesses wish for such developments, so as
government steps up its enforcement of its ill-conceived and misguided price
controls, they discontinue the production and sale of the price-controlled
products and, instead, concentrate upon those products as are not the
subject of controls. That results in pronounced scarcities, to the immense
prejudice of the consumers. Illustrative of this circumstance has been the
near total disappearance of bread from the shelves of most bakeries and
supermarkets. The same holds good for most, if not all, of the other
price-controlled products. Almost in the entirety, the scarce commodities
are only available, if at all, from black market sources, at prices far
beyond those which would have been charged had the traditional outlets been
able to sell them without the harebrained controls imposed by government.
Thus, far from curbing inflation and helping consumers, government is
actually fuelling inflation, concurrently with subjecting most to the
distress of not being able to access their needs.

The long-proven, only effect ways of containing prices are to
address the underlying causes of inflation, to motivate increased
productivity, and to stimulate competition. If government would take
constructive measures to generate foreign exchange, so that virile parallel
market (which is a major contributant to inflation) would decline, to
contain its excessive expenditure, to curb corruption, to restore viability
to agriculture, and to achieve parastatal efficacy and viability, inflation
would decline rapidly and substantially. That would play a very major role
in stabilising prices. Most of those measures would also yield significant
productivity improvement in commerce and industry, which would also
contribute materially to achieving price stability. And the creation of a
deregulated economy and on investment conducive environment would enable
intensified private sector competition. That would motivate determined focus
upon containment of costs, and improved operational efficiencies, in order
to resort to competitive pricing.

Dynamic moves by government in that direction, instead of
pursuit of heavy handed legislation, and the ill-considered intent to create
a Price Stabilisation Monitoring Commission, would address pricing issues
for more beneficially, from the point of view of consumers, and of the
economy, and would be productive. In contrast, the present stance and
actions of government in its intensification and enforcement of price
controls is nothing but total lunacy.


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An ethical dilemma wrought by poverty

Zim Independent

Candid Comment

By Joram Nyathi

LET'S face it gentlemen. Who would not want to marry a rich
woman? What woman would not want to get married to a rich man? Let's leave
the debate about love for another day.

These thoughts raced through my mind as I mused over the Madonna
child adoption saga, debate - scandal or humanitarian gesture? Many people
have taken many angles, depending on their view of Madonna herself, not the
plight of 13-month old David Banda, his grieving father Yohane or the moral
issues involved.

It is the ethical dilemma that comes with poverty that I found
most excruciating. Which is what Yohane faced. I have no brief for jealous
groups who claim the adoption was a publicity stunt by Madonna. There are
thousands of children adopted by Western benefactors from around the
developing world every year.

Governments often focus on the ability of the adopting parent to
meet the requirements of the law, safeguard the rights of the child and
having the means to make the child live a life better than he would have led
had he/she been left under conditions where he/she was born.

In the case of David Banda, those opposed to his adoption have
raised rights issues, or that Madonna was allowed to bend the law to
fast-track her plan. There have been extremists saying Madonna should have
"adopted" the whole family. They don't want to acknowledge that she is
funding charities in Malawi already while they watched and did nothing after
Yohane lost his other two children and a wife.

I have no doubt that were it not for the publicity stirred by
Madonna's act of charity or Yohane's decision, many might never have known
about Yohane and the poverty that forced him to surrender his child to an
orphanage. We have become inured to a life of widespread penury.

Protests about culture, our roots and "robbing our cradle" are
foolish humbug by people who watch and laugh at their poor neighbour's
plight and we have thousands of such people in Zimbabwe.

How many of those shedding crocodile tears about African oneness
are helping victims of Operation Murambatsvina as we enter the rainy season?
How many Aids orphans have they sent to school? Why do we have so many
child-headed families when we have a surfeit of pan-African philanthropists
all around us?

One Taonezvi Mararike living in the lap of luxury in America
pompously parades his string of qualifications. He is called a "speech
pathologist, founder, owner and chief executive officer for Total Therapy
Services, LLC, a US-based contract rehabilitation company for speech
therapy, physiotherapy and occupational therapy".

At the end of his article in the Herald this week, he sermonised
about David Banda's adoption with holy indignation: "No wonder why our human
resources are diminishing. From brain drain now it is robbing our cradles."

So what are you doing in America, Mararike? How many Africans
need your services far more than Americans who are already oversupplied?

Mararike appealed to the whole of Africa to be on the lookout
for European predators visiting the continent to rob it of future
specialists the way colonisers ravished the continent. You would think
finally Africa had come of age if you didn't live in these shores to see for
yourself the grinding poverty and black-on-black human cruelty going on
everyday.

These are the same people who watched and did nothing while 20
000 innocent villagers were butchered in Matabeleland and the Midlands in
the early 1980s as if those people did not have the potential to be doctors,
lawyers, teachers, presidents or ministers.

These are the same people who watched and did nothing when over
800 000 Tutsis and moderate Hutus were massacred in 100 days of a satanic
orgy in Rwanda in 1994. These are the same people who everyday talk about
human rights violations in Iraq and Afghanistan that they view through
Western camera lenses but will not dare alert the African Union to what is
happening in Darfur, in Epworth or the plight of women and children dumped
at Hopley Farm outside Harare.

Nobody talks of African oneness when they see the voiceless poor
who can't even afford to give their dead a decent burial. Did I read in the
Herald this week that Zimbabwe's child mortality rate has shot up while we
posture about Banda being taught British culture?

I am not concerned about what Madonna did as much as the cause -
African poverty that I largely blame on our own failure to manage our human
and natural resources and distribute them equitably.

As a continent Africa is very rich in resources but poor in
leadership. That is what has robbed us of our dignity and chased our
children away. For an African man, no matter however improvident, to have to
surrender his child to a charity is the ultimate indignity. That is why
ordinarily we don't put our aged parents in old people's homes.

Yohane Banda reached a point of desperation and none of his
countrymen heard his wailing in the wilderness, not even his relatives.

Finally a foreigner, a woman for that, has robbed him of his
manhood and the whole of Malawi wants to be adopted by Madonna. Zimbabwe
could be next. The issue is not about strong child adoption laws, it is
about making them unnecessary.


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MEd students allege terror at UZ

Zim Independent

WE enrolled with the University of Zimbabwe in February 2005 and
sat for our first semester exams in May/June of the same year.

Results were published during the mid-year break. We resumed
studies in August 2005 and sat for our second semester exams in
November/December 2005.

Drama started to unfold this year when results were out and
about to be published. Results from all other departments in the Faculty of
Education were published except those for Educational Management.

We tried to find out the reason as there was no official
communication. But rumour was that our results were being withheld due to
some irregularities.

We were summoned to the UZ by one A Nyamunokora by telephone and
each one of us appeared individually before a panel of all chairpersons of
departments in the Faculty of Education.

The dean in the faculty, Chipo Dyanda headed the panel. From the
questions and issues they raised, it was not clear whether they were
investigating an exam paper leak or attempts to solicit exam papers.

The hearing was characterised by threats, verbal abuse,
violation of human rights, degradation and gross disrespect of personal
privacy and freedom of association. This was further compounded by the
summoning of students by the ZRP Serious Fraud Section which has confused us
because we have failed to link UZ academic affairs and this arm of the
police.

We were then asked to resubmit our course work assignments to
the same Nyamunokora who told us this was being done to scrutinise our work.

We also understand that lecturers in the Educational Management
department were asked to form a committee to assist Dyanda headed by one Dr
Kapfundo.

The committee's terms of reference were to scrutinise our exam
scripts in order to check for evidence of the allegations. We also
understand that the committee found no irregularities in the exam scripts
and said they saw nothing abnormal.

Dyanda did not take the committee's recommendations purporting
that the lecturers were interested parties. Consequently, the lecturers and
students were warned not to speak to one another and their phones were
subsequently bugged.

Up to now there are no results for MEd (Ed Management), a
programme we should have completed by now. No one is communicating with us.
If we visit the UZ we are referred from one office to the other with each
one professing ignorance of the whole issue.

As students we are very worried, stressed and frustrated.

* UZ Master in Education (Educational Management) students.


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Gono's lessons on how not to run a project

Zim Independent

THE Herald's report on central bank governor Gideon Gono's call
for Zimbabweans to brace for even tougher times ahead made sad reading.

Since his appointment at the Reserve Bank, a litany of
half-baked economic programmes have been formulated and nothing positive has
resulted from their implementation.

The quality of life for ordinary Zimbabweans continues to
deteriorate unabated.

It is interesting to note that Gono's economic cures are
camouflaged with fancy titles to disguise the brutality of their intentions.

Look at the Project Sunrise, the only plausible deduction is
that Gono wanted to relieve the poor populace of their hard-earned money.

The manner by which the project was executed would have been a
tangible lesson for any project management student on how not to run a
project.

Gono is not qualified to proffer advice to Zimbabweans when he
has failed to deliver sound "text-book" economics.

Joseph Mhlanga,

Dublin,

Ireland.


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Dangers of Gono's excessive powers

Zim Independent

THE issue regarding Philip Chiyangwa's Pinnacle Properties
getting a licence to deal in foreign currency to sell properties to
non-resident Zimbabweans shows the extent to which unbridled and
unconstrained power of the RBZ governor can be abused.

Mr (not Dr please!) Gideon Gono said: "It is illegal for any
institution in Zimbabwe, other than Homelink (Pvt) Ltd, to enter into
foreign currency deals for the purposes of purchasing or renting property."

So "it is even illegal for" the RBZ "to enter into foreign
currency deals."

Although we are told that the RBZ are the sole shareholders of
Homelink (Pvt) Ltd, why should the responsibility of dealing in foreign
currency be monopolised by a company not born out of an Act of Parliament?

Following the abolition of money transfer agencies (MTAs),
Homelink should also have been dissolved since it came into being and was
directly linked to the existence of MTAs.

Its website www.homelinkzimbabwe.com says it currently offers
money transfer services.

The transfer of money is an ordinary line of business of banking
institutions. Is it now illegal to do so through them? I am confident that
one's relative can still send money through the banks.

Our legislature seems to be unsophisticated enough to deal with
the RBZ governor each time they call him to appear before a parliamentary
committee.

The legislative research teams seem to be either compromised or
simply incompetent. The MPs allow him to lecture them and unreservedly
respond to his critics without substance.

Typical of a politician, Gono did a newspaper interview speaking
to himself: "I've no political ambitions: Gono", (Herald, October 23).

Reading the questions, one gets a feeling that the governor
crafted his own questions.

An interview is a formal meeting at which a writer or reporter
poses questions to a person from whom material is sought for a newspaper
story, television broadcast, etc.

The newspaper should have informed us that the following are the
responses to the questions sent to the RBZ governor. There was no "voice" of
the interviewer in the interview at all.

Unfortunately, he responded to the questions by going into an
overdrive without ever thinking someone will find it painful to read since
the length of responses was not reader-friendly.

There is also a feeling that the RBZ governor went into a panic
mode if the online reports that he was summoned by the president over the
Chiyangwa deal are true.

The two-page "interview" is just too much for him and normally
we expect such space to be made for the president. He has such an
unrestrained access to the state media - print or electronic.

We have a governor who talks too much! Compare him with his
predecessors Kombo Moyana and Leonard Tsumba; Tito Mboweni of South Africa,
Alan Greenspan or his successor, Ben Bernanke, of the USA.

All of them earned their doctorates of economics! Gono suffers
from an inferiority complex that sees enemies all over.

He requires management by his advisor, Munyaradzi Kereke, who
earned his economics doctorate.

In Japan, the Ministry of Finance is such a powerful
institution. Our governor here has usurped the Ministry of Finance's role in
the economy.

LM,

Harare.


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... and his witless manoeuvres doomed to fail

Zim Independent

CENTRAL bank governor Gideon Gono's assertion that people should
remain optimistic about the economy when the solution to the economic
meltdown is nowhere in sight is surely misplaced and smacks of a governor
who is at his wits' end.

His remarks that it is often the last key on the bunch that
opens the door speaks volumes of a desperate man who is now experimenting
with a battered economy.

Telling us to be proud of Zimbabwean skills that are running
other economies abroad when our own is in desperate need of such skills is
an insult to our intelligence. It is surprising that the governor seems to
be uncomfortable with criticism when it is him who has grown bigger than his
job description of governor of the central bank.

How can he avoid scrutiny when through his overzealousness and
technically deficient policies, he has shaken virtually every establishment
in the country, albeit with no iota of improvement in the country's economic
conditions?

Perhaps a few pointers may help us better understand issues
here. Since his appointment as governor of the central bank, we watched in
trepidation as he closed financial institution after institution.

At the time, non-core activities and non-compliance with
regulations were given as reasons for the closures, so we gave him the
benefit of the doubt and waited.

However, what he and his team did not and still do not care or
realise is that by closing those institutions because of a few bad apples at
the top, they rendered many men and women in the downstream levels jobless.

Given our (Africans') extended family culture, the governor and
his team did not only put hundreds of people on the streets, but he deprived
thousands of people of livelihoods.

With no government policy that has managed to attract meaningful
foreign direct investment to establish factories or companies in order to
lower unemployment levels, suggestions by some that some company/bank
closures may have been motivated by vindictiveness, and perhaps settling of
old scores, no longer appear to be far-fetched.

Through his desire to stamp out the black market, the governor
is widely seen as one of Zanu PF's architects of the ill-conceived Operation
Murambatsvina which destroyed homes and the informal sector, leaving over
800 000 people homeless, penniless and in abject poverty.

That was a wicked policy with no human face at all! And this is
the man who has the audacity to tell Zimbabweans to remain optimistic . my
foot!

Positive mentality among the generality of Zimbabweans does not
come easily when every day we are faced with shortages of basics, price
increases and have no water or electricity, and are led by a solution-dry
and inept government.

It is perhaps necessary to enlighten the governor that it is now
common knowledge that the Zimbabwean economy's two greatest enemies are, in
order of severity:

* The Zanu PF government and

* Inflation.

The characteristics of the number one enemy are dictatorship,
misguided foreign policy, inept economic polices, corruption and sheer
incompetence.

The last two characteristics are a clear endowment of the
Minister of Local Government. I won't say much about the Minister of
Agriculture as he is either almost non-existent or clueless.

The number two enemy, which is the governor's fixation -
inflation - remains a disease in the economy and cannot be cured singularly.
Insatiable government expenditure and low capacity utilisation, both in
agriculture and industry, and the lack of forex have clearly been the main
causes of inflationary pressures and the meltdown.

It is my conviction that by defeating enemy number one the
battle against enemy number two will certainty be decisively won!

In true fashion of a policy maker who is now bankrupt of ideas
and solutions, the governor has resorted to creating scapegoats in the form
of the so-called economic saboteurs for allegedly taking advantage of
imbalances in the economy and abetting the black market.

Could the "guvnor" please tell me who in his/her right mind
would change that ellusive greenback (US dollar) in a commercial bank at
such a "sick" exchange rate when flogging it on the black market will result
in more Zim dollars to put food on the table and to feed many mouths at
home?

In fact, in our current economic quagmire, the black market has
been the hero and the backbone for survival for the majority of Zimbabweans.

The parallel or black market did not just surface suddenly like
a mushroom. It is nature's way of balancing the economic food chain in an
economy fraught with flawed and skewed policies.

Ever wondered why many people the world over have asked how we
are managing to survive under these torrid economic conditions? The black
market is the answer, period!

The governor's new-found love of using security forces to
buttress his battle with the so-called economic saboteurs is interesting as
it shows that, for a supposed technocrat, he has stooped so low in order to
cover up the failures of his concoction of monetary policies.

Some of these security forces have been drafted into the already
bloated central bank structure and their sole purpose has been to
intimidate, harass and even torture businesspeople for putting mark-ups on
goods produced from raw materials whose purchase prices were already
infected by the hyperinflation bug.

This obsession with militarising government institutions in a
bid to solve flawed economic fundamentals is not only witless but doomed to
miserably fail.

To label any Zimbabwean who refuses to be hoodwinked and
intimidated by dictatorial authorities who openly lie in daily state
newspapers as spineless is as gibberish as blaming our economic meltdown on
sanctions.

Don Sahayi (Snr),

Harare.

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