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AG Declines To Prosecute Bennett on Nine Years Ago Charges

http://news.radiovop.com

06/04/2010 12:04:00

Harare, April 06, 2010 - The Attorney General's office has declined to
prosecute MDC treasurer general Roy Bennett on charges of holding to maize
nine years ago in matter that has been described as persecution rather
prosecution.

Bennett was last week served with fresh summons last week at the High Court
where he is on treason trial and he was supposed to appear before a Chipinge
magistrate for breaching the Grain Marketing Board Act.

Chief Law Officer Chris Mutangadura in the AG's office on Tuesday said the
AG's office is no longer pursuing the matter on the grounds that there was
no justifiable reason why the matter was not heard in 2001 when the summons
were issued.

"We are not going to pursue that matter at the moment. We have told Bennett's
legal practitioners to wait to hear from us on the way forward. What we need
to check now is who was holding on to those summons because this is a
straight forward case which could have been dealt with back then," said
Mutangadura.

Bennett's lawyer Beatrice Mtetwa of Mtetwa and Nyambirai said they
approached the AG's office to intervene after realizing that the trial was
not going to go ahead.

"What we did last was to approach the AG (Johannes Tomana) to intervene
because we had not been offered the docket and the witness statements.  The
AG agreed that there was no need for Roy Bennett to travel all the way to
Chipinge when we knew that the trial will not proceed," said Mtetwa.

She said the AG said he will make a determination after going through the
docket which "he is yet to receive from police officers from Chipinge".

The charges against Bennett arose after he allegedly violated the Grain
Marketing Board (GMB) Act for failing to declare 92, 289 metric tones of
maize to the authorities nine years ago.

The State alleges that on October 22, 2001 and at Charleswood Estate
Chimanimani Roy Leslie Bennett wrongfully and unlawfully was found in
possession of 92, 289 metric tones of maize which he did not declare to the
authorities in terms of the GMB act.

According to the Constitution of Zimbabwe any person charged with a criminal
offence shall be accorded a fair hearing within a reasonable time.

Therefore it is a fundamental breach of a person's human rights if
prosecutions are not brought expeditiously against a person accused of
crime. If there is a delay a person accused of a crime may not, for example,
be able to call witnesses in his defence.

Meanwhile David Coltart, secretary for legal Affairs in the smaller Movement
for Democratic Change (MDC) faction and Education Minister was quoted by the
Prime Minister's Website condemning the move to prosecute Bennett on charges
that happened nine years ago.

"In short it is not open to the police to bring charges now when they should
have been brought years ago when the crime was allegedly discovered. The
police cannot keep charges locked away in a drawer to be brought out at an
"appropriate" moment. If a crime has been committed by a person known to the
police then charges should be brought immediately against that person.
Accordingly the prosecution of Senator Bennett at this late stage appears to
be a clear breach of section 18 of the Constitution. The Attorney General
has a duty to explain to the public why it is that this prosecution was not
brought earlier. If he cannot do so then the public will assume that there
has in fact been a breach of section 18 and a denial of a fundamental right
to Senator Bennett."
 


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Gono urges caution on empowerment

http://www.thedailynewszw.com/?p=28613

April 6, 2010

By Our Correspondent

HARARE - Reserve Bank governor Gideon Gono on Monday maintained that the
recently enacted empowerment regulations were susceptible to abuse by
well-heeled officials.

His comments appear to have created tension with the architect of the
regulations, Indigenisation minister Saviour Kasukuwere.

Gono, who was speaking during a tour of his Donnington Farm by visiting ANC
Youth League president Julius Malema, railed against the empowerment
regulations.

He and Kasukuwere have openly clashed over the controversial empowerment
law.

After a tour of Gono's massive farm supposedly to trumpet the land grab as a
success story to the visiting ANC delegation, Gono delivered another
unrestrained attack on the empowerment regulations.

The regulations seek to give foreign owned companies, including banks and
mines, 45 days to submit proposals on how they plan to sell 51 percent of
their shares to black Zimbabweans within the next five years.

"Honourable people," said Gono; "be on the look out for those who would want
to be greedy; those who would use connections to get into factories. Let's
guard against vices that might draw us back. The process cannot benefit the
same people who have benefited over the years."

Kasukuwere fidgeted uncomfortably in his seat as Gono said this.

Gono first attacked the empowerment regulations in an interview with a local
financial weekly, where he said he was against the "content, style and
approach" of the policy.

Gono warned against farm-type "jambanja" (gang violence) this time around.

He was referring to President Mugabe's land grab programme that saw prime
farmland seized from white commercial farmers and redistributed to landless
blacks, but with serious consequences on agricultural production and exports
in the agro-based economy.

"We are all witnesses to what can inadvertently happen when that is allowed
to take place and we cannot be a people who do not learn from yesterday's
implementation shortcomings," Gono said in the interview.

Kasukuwere fought back, accusing Gono of proffering "megaphone advice" and
"seeking relevance."

Kasukuwere also accused Gono of shutting down indigenous-owned banks, saying
the governor had no moral ground to lambast the empowerment regulations.

At Donnington Farm, Kasukuwere, who was chaperoning the visiting ANC
delegation, cut a lonely figure. In his speech, the minister steered clear
of commenting on the regulations.

Informed government officials say Kasukuwere enacted the regulations with
the full support, if not encouragement of President Mugabe.

Prime Minister Tsvangirai has declared the regulations "null and void"
because they were enacted without consultation with him as the global
political agreement and Constitution Amendment No 19 prescribes.

The regulations also bypassed a Cabinet committee that looks at the legality
of regulations before they are gazette.

But Kasukuwere said last week: "I am empowered to publish. When I became
Minister of Indigenisation the Act was already there. What was I supposed to
do, sit around and not gazette the regulations? I only consult when there is
need."

Mugabe himself has wondered why Zimbabweans would be opposed to a scheme
that seeks to empower them.

But critics say the timing of the enactment of the regulations was out as
they came as the country was desperately trying to attract foreign
investors.

Observers say the regulations have dissuaded many investors, who have put
plans to invest in Zimbabwe on ice.

Just last week, the German African Business Association in Hamburg and the
German Southern African Chamber of Industry and Commerce in Johannesburg put
on hold plans to bring German investors into Zimbabwe, describing the
country as a "no go area'' for foreign investors.


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Malema intervenes in Gono, Kasukuwere battle

http://www.zimeye.org/?p=15821

Harare  -  Controversial African National Congress (ANC) youth league
president Julius Malema on Sunday told Youth Development, Indigenisation and
Economic Empowerment Minister Saviour Kasukuwere to respect the Zimbabwe
Reserve Bank Governor Gideon Gono's opinion pertaining the Indigenisation
Act.

Gono and Kasukuwere have clashed seriously over the law with the former
saying it was going to destroy the economy while the later insists that it
was meant to empower the black majority.

Speaking at a ZANU-PF meeting held at Dr Gono's Norton farm Sunday night,
ANC youth leader Julius Malema said Gono was better qualified to oppose the
Indigenization Act because he knew the economy better than Kasukuwere.

"You must understand the role of a Governor; he at all times has a
responsibility of balancing his Act. It  is  him  who must  balance both the
confidence of the people and the investor and  in most  cases you  are
going to fight with  him more than five  times, because  he seeks to
balance  his actions.

"He at times must not sing slogans because he is neutral and during the
execution of his duties he must be patient and ready to take that heat
because he has entered the kitchen. If he cannot take the heat he is
sometimes told to get out and we do not need that to happen.

"If you have areas of disagreements, do not fight through the media", he
said.

Gono said he was not opposed to the Act but was worried by the way it was
going to be implemented.

"We have done a number of empowerment programs over the years which have not
bore the required resources. We have witnesses of good polices that have
failed our people on the altar of implementation. We have people who have
had access to land and they have not had an excellent result and we are
saying that action should not be repeated. We are also sounding a warning
bell to the government that please  be  on the lookout of those who want to
be greedy ,those  who want to use connections to get into  these  factories
and others to just  be smart about  it. We are saying let's guard against
those vices that want to draw us back to where were where, "said Gono.

Kasukuwere maintained that there was no going back in implementing the law.

"Those who are opposed to the Act must go and die. We have no reverse gear
in our gear box. Journalists please emphasize that Kasukuwere has said 50%
in the country's minerals are for us. If there is an insane Zimbabwean who
is opposed to that he must go and die", he responded at the same meeting.


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Kunonga snubs Vice President Nkomo

http://www.swradioafrica.com/

By Violet Gonda
6 April 2010

Anglican parishioners from Harare were barred from going to church this
Easter by the notorious Nolbert Kunonga, the former Anglican Bishop of
Harare. This resulted in at least a thousand Anglicans having to celebrate
Good Friday in the Unity Square Gardens, after being shut out of their
parishes and the Cathedral over Easter, in spite of a court order
instructing the warring factions in the Church to share access to the
property, pending the outcome of the dispute in the courts.

"It was a very moving service, especially when you consider that Jesus
Christ was crucified out of the city, and there we were meeting for Good
Friday outside of our churches and in this case outside of the Cathedral.
For us it was very symbolic," Bishop of Harare Chad Gandiya told SW Radio
Africa on Tuesday.

He said even one of the Vice Presidents tried to appeal to Kunonga but it
just didn't work. "Vice President John Nkomo tried to talk to both of us
together and asked us if we could just work in peace, obviously observing
Justice Makarau's judgement - that we share until such a time the courts
determine the matter that is before them. And I understand that this is the
thinking of most people in government that the law should be upheld, but to
our surprise it wasn't and again as is always the case, the police were
prohibiting us."

The Bishop would not divulge what exactly went on in the meeting with the
Vice President, except to say that the request to share the building was not
accepted by Kunonga. As Vice President Nkomo is dealing with issues of
National Healing and Reconciliation.

Bishop Kunonga was excommunicated by the Church in May 2008 after he tried
to unilaterally withdraw the Diocese of Harare from the regional Anglican
Province of Central Africa. To this day the Bishop refuses to accept this
decision by the Church and also refuses to give up possession of St. Mary's
Cathedral in Harare. His successor is Bishop Gandiya, who has not been
allowed to conduct church services in the diocese.

The disputes have reached the courts, with the High Court ordering both
factions to share church property while the matter is still being dealt
with, but Gandiya's faction is still forced to conduct church services in
the open and Kunonga and the police are in clear violation of the High Court
order.

Anglican parishioners who attended the open mass over Easter said popular
support is with Gandiya, because he still commands huge numbers of
parishioners to his service, including support from respected and retired
Bishops like Peter Hatendi and Sebastian Bakare.

Our correspondent Simon Muchemwa said there were only about 100 church
members loyal to Kunonga in the Cathedral, which was heavily guarded by the
police. He said: "The service was held upstairs and not in the main arena of
the Cathedral because the congregation was small, and this service was held
while hundreds of other Anglican worshipers were forced to worship in the
Unity Square Gardens on Good Friday."

Some observers say Kunonga must have the backing of Mugabe - because without
this he wouldn't have the constant police support that he has access to.

Bishop Gandiya said the tragedy of the whole situation is that people know
there is a law to be obeyed and yet continue to flout it, with the help of
the police.

A frustrated parishioner sent an email to SW Radio Africa saying: "I'm
Anglican and the issue of the persecution of our church here in Harare
Diocese has escalated to ridiculous levels.  We are worshipping outside
locked, empty churches and we are having priests arrested for giving mass,
etc."
 


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Harare considers auctioning diamond fields

http://www.zimonline.co.za/

by Own Correspondent Tuesday 06 April 2010

HARARE - Zimbabwe's government is now considering auctioning parts of the
Chiadzwa diamond field to firms that have applied to mine in the area,
senior government sources told ZimOnline last week.

However the sources said the government was caught up in quandary because
not all of Chiadzwa (also known as Marange) has been surveyed to establish
the value or size of deposits that the state would need to know to be able
to set prices for the various portions of the field to be auctioned.

"We are thinking of auctioning the Chiadzwa diamond fields," a senior
government official said, speaking on condition that his name was not
published.

"The problem is that we do not know the value of the diamonds there. The
major problem with Chiadzwa is that other parts of the area have diamonds
and one area has nothing, so how do you put a proper valuation of the gems
there?"

Currently two firms Canadile Miners and Mbada Investments are operating in
the diamond fields in joint ventures with the government's Zimbabwe Mining
Development Corporation (ZMDC) in line with Kimberley Process (KP)
standards.

Both Canadile and Mbada are said to be just each using 1 000 hectares of the
69 000 hectares the ZMDC has in Chiadzwa.

The source said the firms which will most likely be considered are part of
the 20 from which the government has received applications.

"There is a feeling that although we have shortlisted four firms out of 20
that have applied, if we auction off the area there could be more revenue
for the state," the official said.

"However our biggest worry is that we do not know the value of the diamonds
that in Chiadzwa."

Most of the diamonds in Chiadzwa are classified as alluvial diamonds.

Mines Minister Obert Mpofu was not immediately available for comment.

Chiadzwa is one of the world's most controversial diamond fields with
reports that soldiers sent to guard the claims after the government took
over the fields in October 2006 from British-based Africa Consolidated
Resources that owned the deposits committed gross human rights abuses
against illegal miners who had descended on the field.

Human rights groups have been pushing for a ban on Zimbabwean diamonds but
last November, the country escaped a KP ban with the global body giving
Harare a June 2010 deadline to make reforms to comply with its
regulations. - ZimOnline


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Zim talks are on again

http://www.timeslive.co.za/

Zuma sends his negotiators back
Apr 5, 2010 11:01 PM | By DOMINIC MAHLANGU

President Jacob Zuma is to send his team of negotiators back to Zimbabwe
after power-sharing talks between Zanu-PF and the Movement for Democratic
Change stalled again.

Zuma, who last month visited Zimbabwe as the African Development Community's
chief mediator, set a deadline of March 31 for the political parties to
resolve their differences.

But President Robert Mugabe, MDC leader Morgan Tsvangirai and Arthur
Mutambara, of the breakaway MDC, failed to meet the deadline and gave Zuma's
facilitation team only a verbal update.

Zuma's spokesman, Vincent Magwenya, yesterday said the team was heading back
to Zimbabwe. It hoped to secure a written agreement between all parties.

"The deadline was missed and the negotiators representing the political
parties asked for more time. The president is hopeful that all outstanding
issues will be concluded this week and that a full report will be presented
to him," Magwenya said.

Since the signing of the Global Political Agreement in 2008, Mugabe and
Tsvangirai have blamed each other for the lack of progress in their unity
government. Tsvangirai has blamed Mugabe for reneging on key provisions of
the deal and continuing to undermine MDC ministers.

Mugabe accused Tsvangirai's party of working with the West to impose
sanctions on Zanu-PF ministers and others loyal to him.

The dispute is also about Mugabe's continued refusal to remove central bank
governor Gideon Gono, and attorney-general Johannes Tomana, from their
posts. Mugabe has also refused to appoint the MDC's Roy Bennett as deputy
minister of agriculture.

Magwenya said that though the negotiations were moving at a snail's pace,
Zuma was confident that an agreement on all outstanding issues would be
reached.
 


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Zimbabwe Dairy Industry Seen on Verge of Collapse Following Decade of Land Reform

http://www1.voanews.com/

Zimbabwe's national dairy herd is down to just 22,000 cows from 192,000 in
2000 when supporters of President Robert Mugabe started seizing white-owned
farms

Gibbs Dube & Loirdham Moyo | Washington 05 April 2010

Zimbabwe's dairy industry has declined to the verge of collapse following a
decade of land reform, experts say, with the national dairy herd down to
just 22,000 cows from 192,000 in 2000 when supporters of President Robert
Mugabe started seizing white-owned farms.

Chairman Wesley Tose Sansole of Parliament's Committee on Industry and
Commerce said his panel heard from managers of the state-controlled
enterprise Dairibord Zimbabwe that it is being supplied by just 60 dairy
farmers compared with 215 providers in 2000.

Deliveries have plunged to 38 million liters a year from 138 million liters
of milk 10 years ago.

Sansole told VOA Studio 7 reporter Gibbs Dube that the industry has suffered
because white commercial dairy farms were seized by ZANU-PF militants who
failed to maintain milk-production operations.

He also said chronic electric power outages are also hurting the dairy
industry.

Meanwhile, some newly resettled commercial tobacco farmers are complaining
that they don't have enough laborers to harvest the current crop.

As correspondent Loirdham Moyo reported, farmers in Nyazura and Rusape,
Manicaland province, among other areas, have warned that if tobacco leaves
are not picked in time, the quality of the crop could suffer.


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Sibanda says war veterans got ‘peanuts’

http://www.thedailynewszw.com/?p=28605

April 6, 2010

By Our Correspondent

HARARE – War veterans’ leader Jabulani Sibanda has described as peanuts
payments given to the former freedom fighters by government thirteen years
ago.
He says the payments did not take into consideration the number of years
spent in the struggle.

Sibanda, wrestling for control of Zimbabwe National Liberation War Veterans
Association (ZINLWVA) with Joseph Chinotimba said former liberation war
fighters deserved better than the gratuities they received from government.

“You say war veterans were paid for participating in the struggle,” said
Sibanda. “How much were they paid? How long were they in the struggle? Were
the gratuities consistent with the number of years spent in the struggle? ”

“The answer is no, because war veterans were given peanuts to get them off
the streets where they were demonstrating after 17 years of independence.

In 1997, the government acceded to demands by the ex-combatants and paid
them Z$50 000 each.

“Former Rhodesians are receiving pensions and war veterans receive nothing,”
said Sibanda. “That was gross injustice on the side of the freedom fighters
by a free government that had come into power by the sacrifice of the same.”

Meanwhile, cracks continue to widen within ZINLWVA. Sibanda was re-elected
chairman of the organisation at a congress last month.

But Chinotimba has refused to recognise Sibanda’s leadership.

“We do not even recognise the congress and we do not even believe that it
took place,” said Chinotimba. “If it did then who was the presiding officer?
He (Sibanda) cannot be a presiding officer and the winner.

“It was not the war veterans because the real war veterans’ congress is
going to be held soon.

However, Sibanda, who has been at the helm of the association since 2000,
said the congress was conducted above board. He was retained unopposed.

The elections took place at Chaminuka Training Centre in Bindura.

War veterans have over the years been loyal supporters of President Robert
Mugabe, patron of the association.

The ZNLWA fired one of its top members after he denounced Mugabe for holding
on to power.

Maxwell Marange, who was the association’s chairman in Manicaland Province,
chanted slogans denouncing Mugabe at the Meikles Park in Mutare during a
march organized to support the aging leader’s presidential candidacy in the
2008 elections.

But Marange took everybody by surprise when he took to the podium and
chanted: “Pasi naMugabe! (Down with Mugabe).”

Marange was among Zanu-PF supporters who felt Mugabe was not the appropriate
candidate to stand on behalf of Zanu-PF in the 2008 harmonized poll.

Mugabe went on to lose to Morgan Tsvangirai, the MDC leader. However,
official results suggested Tsvangirai had failed to secure 51 percent of
votes to take over presidency, necessitating a runoff.

Tsvangirai pulled out of the second round citing violence.


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Zanu PF Launches Propaganda Newsletters In Rural Areas

http://news.radiovop.com

06/04/2010 08:28:00

Gutu , April 06, 2010 - Despite enjoying a propaganda monopoly on the public
media, beleaguered Zanu PF party, in its quest to discredit the Movement for
Democratic Change (MDC) party, has launched two newsletters, The Insider,
and The Zimbabwe Today, which are circulated free of charge in rural areas,
and ae being seen as a counter to the MDC publications.

The MDC, under Prime Minister Morgan Tsvangirai, publishes two newsletters,
The Changing Times, for the party, as well as The Prime Minister's
Newsletter, which highlights the party's position and developments in the
inclusive government. The two publications have proved to be a people's
favorite.

Not to be outdone, president Robert Mugabe has so far published two issues
of the two new publications following the closure of the party newspaper,
The Voice, which also churned party propaganda.

Radio VOP recently witnessed the two tabloids - which have the same colours
and masthead as those of the MDC-T - being distributed by Zanu PF youth,
free of charge, to information starved villagers in Domborembavha and
Munyaradzi communal areas in Gutu.

The Insider had a lead story titled, 'MDC paying lip service to corruption'.
The story alleges that the anti corruption drive in the party is targeting
'small fish', amid allegations that Tendai Biti, who is the party secretary
general and Finance Minister in the inclusive government, is involved in a
$13 000 000 scam. Quoting un-named sources, the paper alleges Biti bought
Tsoko lodge in Nyanga from the misappropriated funds from donors which he
held in the absence of MDC-T treasurer general, Roy Bennet, who was in exile
in South Africa and now facing treason charges.

The Zimbabwe Today carried long columns from well known Zanu PF
sympathisers, Reason Wafawarova and Tafataona Mahoso,
denouncing the West over sanctions.

Zimbabwe Today's motto, 'What the man on the streets needs to know about
Zimbabwe', does not live true as some its articles carry difficult words
that would need the reader, the ordinary man in the street, to constantly
consult the dictionary.

Political analyst Takavafira Zhou said he got wind of the two newsletters
being circulated in Masvingo, but rubbished them as a
'desperate attempt by a desperate party'.

"They are trying in vain to discredit the MDC-T, despite having control of
Zimpapers and The Zimbabwe Broadcasting Holdings (ZBH). But I know the
people will no longer buy their propaganda," Zhou said.
 


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South Africa’s hate speech echoed in Zim, by Malema

http://www.swradioafrica.com/
By Alex Bell
06 April 2010

Concern is high after this weekend’s controversial visit by ANC Youth League
(ANC-YL) leader Julius Malema, who used a ZANU PF rally to sing a song
already deemed as ‘hate speech’ by his country’s courts.

Malema visited Zimbabwe as a guest of ZANU PF’s Youth League, to learn
‘lessons’ on nationalisation. The firebrand ANC-YL leader, who rose to
notoriety by stating that he would ‘kill’ for South African President  Jacob
Zuma, addressed a number of ZANU PF rallies over the weekend. It was on this
platform that Malema once again sang the apartheid era protest song ‘Shoot
the Boer’ (Dubula’ibhunu), which a court barred him from singing after
declaring it a form of hate speech.

But this didn’t stop him from singing it in Zimbabwe, where a senior ZANU PF
youth official substituted the word ‘ibhunu’, with ‘Roy Bennett’ -  in
reference to the MDC Treasurer General.

“We are not against whites at all, we are only against those whites who do
not see blacks as human beings,” said ZANU PF youth secretary, Absalom
Sikhosana.

There is grave concern over this echo of Malema’s chosen song, which he has
used to incite and stir up racial tensions in South Africa. The ANC led
government has also declared it would appeal the court decision ruling the
song as hate speech, saying it is a part of the country’s heritage. But
rights groups, such as civil rights initiative AfriForum, have warned that
the singing of the song in recent weeks is increasing racial tensions and
violence.

AfriForum’s Ernst Roets, who has led the legal challenge to force Malema to
stop singing the song, told SW Radio Africa on Tuesday that the song is
encouraging ‘racial polarisation’ and violence. He explained how many of
their members have spoken of increased threats against them, threats that
have only increased since Malema started using the song as his personal
anthem. Roets also expressed concern that at least seven South African
farmers have been killed since Malema first sang the song last month,
echoing statistics that one farmer is killed every two days in South Africa.
Roets however hesitated in linking the murders with the singing of the song.

ZANU PF’s worrying twist on the song came at the same time that racial
tensions almost boiled over in South Africa, after a controversial white
supremacist was murdered over the weekend on his farm. Eugene Terreblance
was killed by two of his farm workers, allegedly in a dispute over pay, but
his far right wing AWB group has accused Malema and the singing of the
‘Shoot the Boer’ song as the real reason behind the murder.

The ANC led government, under the helm of Jacob Zuma, has called for calm
and police have stated that the murder is in no way political. But as Roets
pointed out on Tuesday there has been no condemnation of the song or Malema’s
contempt of court by singing it. Roets said it is gravely concerning that
the country’s leadership refuses to denounce hate speech in this way,
despite what many say are the obvious consequences.

 


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44 perish on roads

http://www.herald.co.zw

Tuesday, April 06, 2010

Herald Reporter

SIX people died yesterday when a Peugeot 504 sedan they were travelling in
burst a tyre and collided with a Masvingo-bound Mhunga bus along the
Harare-Masvingo Road near Lanark Store, about 30km outside Harare bringing
to 44, the road fatalities in one of the bloodiest Easter holidays in years.

Last year 19 people died over the four-day holiday period.

All the passengers on the Harare-bound Peugeot died on the spot while the
injured, who were on the bus, were ferried to Chivhu District and Harare
General hospitals.

The Peugeot was coming from Zinatsa area in Chivhu but it could not be
ascertained if the passengers were related by the time of going to print.

The number of injured people was not immediately confirmed. Ambulances
sounding sirens were seen heading for Harare by late yesterday evening.

Beatrice police spokesman Simon Dube, who was at the scene of the accident,
said the injured were ferried to Chivhu and Harare but did not give further
information, referring The Herald to Harare.

However, eye witnesses said when the Peugeot burst a tyre, another vehicle -
a Mazda 323 - that was travelling behind it tried to avoid a collision and
encroached onto the other lane.

On seeing the Madza in his lane the Mhunga bus driver swerved onto the
opposite lane and ploughed into the Peugeot killing all six on impact.

The bodies were ferried to Chitungwiza General Hospital mortuary where
families who suspect their relatives could have been travelling in the
Peugeot should go and identify the bodies.

The Peugeot was reduced to a mangled wreck, with the engine and gearbox
being detached from the chassis.

Police spokesman Superintendent Andrew Phiri on Sunday said 10 749 tickets
were issued to various traffic offenders while 433 unroadworthy vehicles
were impounded.

Police have attributed most of the accidents to human error with the
remainder blamed on driving without due care and inattention, overloading
and defective vehicles.


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Zimbabwe Power Sharing Partners Review Negotiation Report, But Deadlock Remains

http://www1.voanews.com/

South African facilitator Lindiwe Zulu said her team will have a copy of the
report by Wednesday and review it with President Zuma before returning to
Harare to press the power-sharing parties for broader agreements

Ntungamili Nkomo | Washington 05 April 2010

The three principals in Zimbabwe's troubled power-sharing government have
received a report summarizing the state of talks by their negotiators, who
have again deadlocked on key issues and are expected to meet soon to try to
resolve those so-called outstanding issues with the help of South African
mediators.

Negotiator Elton Mangoma of the Movement for Democratic Change formation led
by Prime Minister Morgan Tsvangirai told VOA on Monday that Mr. Tsvangirai,
President Robert Mugabe and Deputy Prime Minister Arthur Mutambara were
reviewing the report from negotiators for their parties. Mutambara is the
president of a rival MDC formation.

Sources said the report states that negotiators could not agree on the fates
of Reserve Bank Governor Gideon Gono and Attorney General Johannes Tomana,
whose appointments in late 2008 by President Mugabe in the interim between
the September signature of a power-sharing agreement and the formation of a
national unity government has been a bone of contention.

Following mediation by South African President Jacob Zuma in March,
political sources said one of the two men was supposed to step down as part
of the "package of measures" assembled by Zuma, mediator on behalf of the
Southern African Development Community.

President Robert Mugabe and other ZANU-PF officials since then have denied
there was such a deal.

South African facilitator Lindiwe Zulu said her team will have a copy of the
report by Wednesday and review it with President Zuma before returning to
Harare later in the week to push for broader agreements.

Bulawayo-based political commentator Qhubani Moyo told VOA Studio 7 reporter
Ntungamili Nkomo that the only solution may be new national elections - but
this is possible only if a new constitution is put in place.


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MDC youths say Malema provocative

http://www.thedailynewszw.com/?p=28609

April 6, 2010

By Our Correspondent

BULAWAYO - The mainstream MDC youth assembly has described Africa National
Congress (ANC) youth president Julius Malema's remarks during his just-ended
visit to Zimbabwe as provocative.

ANC Youth League leader Julius Malema, left, from South Africa meets with
President Robert Mugabe during his visit to Zimbabwe Monday, April 5, 2010.
Malema, the militant leader of South Africa's ANC youth league, arrived in
Zimbabwe on Friday and addressed several Zanu-PF meetings and a rally before
meeting President Robert Mugabe.

He described MDC as imperialist an organization which the ANC youths would
not befriend.

However speaking to The Daily News on Tuesday, mainstream MDC deputy
national youth chairman, Amos Chibaya, who is also legislator for Mkoba,
dismissed Malema's remarks as unnecessary provocation.

"He just came here to provoke the situation," said Chibaya. "As MDC youths
we respect ANC leaders so much. They are mediators between parties in the
inclusive government here. And for Malema to just come and insult us; it's
just unacceptable.

"Malema should not act as if he is the youth leader to all African political
parties by going around labelling others puppets of the West".

He said they were going to file a complaint with ANC leaders over Malema's
sentiments.

"As the MDC youth assembly, we are going to formally engage leaders of his
party on this issue," he said.

During his four-day visit, Malema toured platinum giant Zimplats in Ngezi
where he was told of proposed black empowerment plans at the mine.

Zimplats and beverages conglomerate Delta are some of the big
foreign-controlled firms that have submitted empowerment proposals in
compliance with government's indigenization regulations.

Indigenisation minister Saviour Kasukuwere described proposals presented to
him by Zimplants as "crazy".

The Indigenisation and Economic Empowerment Act, gazetted in February and
effective from March 1, states that foreign firms valued at a half a billion
dollars or more should cede 51 percent of their shareholding to locals.

Zanu-PF invited Malema to buttress its indigenisation agenda and the
much-criticised regulations.

In South Africa opposition parties have sought to draw a link between the
weekend murder of white supremacist Eugene Terreblanche with Malema's
insistence on singing a liberation song "Dubul' ibhunu", which means "shoot
the Boer."

The song has been banned by the courts but the ANC says it will appeal
against the decision.


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FULL TEXT: KP monitor's Marange report

http://www.zimonline.co.za/

Tuesday 06 April 2010

Kimberley Process Certification Scheme, Fact Finding Mission

By Abbey Chikane, KP Monitor for Marange, Zimbabwe

21 March 2010

Introduction

The author prepared this report to confirm the understanding of the mandate
of the KP Monitor for Zimbabwe. The report is written with a view to
ensuring that the KP Monitor's approach to the implementation of the Joint
work plan is consistent with Kimberley Process, Working Group on Monitoring
expectations. The terms of reference and joint work plan incorporate in this
report provide further details of the KP Monitor's respective
responsibilities and; the fact-finding visit to Zimbabwe facilitated an
on-the-spot assessment of the situation. Further, the fact-finding-visit has
enabled him to determine his approach to the assignment and confirmed his
operational requirements.

The fact-finding-mission occurred from 1-3 March, 2010.

Background

Appointment of the KP Monitor

Abbey Chikane, founder chairman of the Kimberley Process was nominated KP
Monitor for Marange, Zimbabwe by the Kimberley Process Working Group on
Monitoring, in consultation with the current chairman of the Kimberley
Process. Following communication between Mr. Chardon, chairman of the
Working Group on Monitoring, and the Honourable Obert Mpofu, Minister of
Mines and Mining Development, Chikane was accepted by the government of
Zimbabwe.

Understanding the Mandate

The Seventh Annual Plenary of the Kimberley Process Certification Scheme met
from 2 - 5 November, 2009 in Swakopmund, Namibia. At this meeting, the
Plenary adopted an Administrative Decision on a joint work plan aimed at
bringing Zimbabwe's diamond trade into full compliance with the minimum
requirements of the Kimberley Process. This follows acknowledgement by
Zimbabwean government representatives that there have been certain
challenges in complying with the minimum standards of the Kimberley Process
Certification Scheme. The government noted its commitment to urgently
addressing issues identified in the reports of the Working Group on
Monitoring (WGM), Working Group on Statistics and the report of the
Kimberley Process Review Mission to Zimbabwe that took place from 30 June to
4 July 2009.

The joint work plan was developed by Zimbabwe and the Kimberley Process
Certification Scheme to implement recommendations of the Review Mission
(2009). The joint work plan is expected to be supported by technical
assistance from Participants and Observers in the Kimberley Process. Plenary
also urged Kimberley Process Participants and Observers to promote regional
cooperation and outreach in support of this plan. The implementation and
progress of the plan will be reviewed by the Intersessional and Plenary of
the Kimberley Process in 2010.

To oversee and support the implementation of the joint work plan, Plenary
resolved that a Kimberley Process Monitor for Zimbabwe (KP Monitor) be
appointed. As stated in the Joint work plan, the role of a KP Monitor is to
examine and supervise shipments of rough diamonds from the Marange area. The
Joint work plan provides for a supervision of export mechanism under which
exports of Marange diamonds are subject to Kimberley Process verification
and confirmation that those rough diamonds were handled in full compliance
with the minimum standards of the Kimberley Process. The Administrative
Decision also provides for a review mission to assess progress in the
implementation the joint work plan.

Although the terms of reference and joint work plan eloquently explained the
task, the KP Monitor would like to restate his understanding of the
assignment. The main objective of the KP Monitor is to support the
implementation of the Swakopmund Plenary Administrative Decision and Joint
work plan and work with the Zimbabwean authorities towards full compliance
with the minimum requirements of the Kimberley Process Certification Scheme.

The main activities of the KP Monitor involve monitoring the implementation
of the Joint work plan and reporting on a regular basis, with the frequency
of such reporting still to be mutually agreed, to the chairman of the
Working Group on Monitoring with copies to the Kimberley Process chair and
the

Minister of Mines and Mining Development of Zimbabwe. The Kimberley Process
and the government of Zimbabwe have agreed that the KP Monitor will have
full and unhindered access to all relevant diamond production and processing
sites as well as to all stakeholders from the point of mining to the point
of export, including representatives of government, industry and civil
society.

On request, the KP Monitor will prepare an Interim Progress report for the
Kimberley Process Intersessional meeting, to be held in June 2010 and/or for
the preparation of the Kimberley Process Review Mission which will be
conducted in terms of the Joint work plan, as well as a Final report for the
Plenary which is scheduled to convene in November 2010. The calendar for
submitting regular progress reports will be provided to the KP Monitor for
consideration by the Chair of the working group on monitoring.

In addition, prior to each export, the KP Monitor will examine, at the
request of the Zimbabwean Ministry of Mines and Mining Development, diamonds
shipment from any producing areas in the Marange diamond fields to confirm
whether diamonds selected for shipment meet Kimberley Process minimum
requirements and confirm their certification for export.

The KP Monitor will conduct a thorough examination of individual shipments
and their chain of custody to confirm their compliance with Kimberley
Process requirements, according to the following procedure:

- When the KP Monitor assesses that an export shipment has been produced and
prepared in accordance with Kimberley Process Certification Scheme minimum
requirements, the KP Monitor is required to confirm this on the relevant
Kimberley Process Certificate with his signature and stamp, and will
digitally photograph the certificate and shipment. A specimen of the KP
Monitor signature and stamp will be provided to the Kimberley Process Chair
for prior distribution to Kimberley Process Participants.

- When the KP Monitor assesses that an export shipment has not been produced
and prepared in accordance with Kimberley Process Certification Scheme
minimum requirements, the KP Monitor will provide to the Ministry of Mines
and Mining Development specific written indications as to the reason(s),
including any possible means of remediation. Any such proposed export will
be held until the necessary remedial action is completed, after which the KP
Monitor will reexamine the export and, if fully Kimberley Process
Certification Scheme compliant, certify the shipment and sign the Kimberley
Process Certificate.

After each examination, the KP Monitor is required to prepare a specific KP
'export examination report', providing summary conclusions on exports that
have been reviewed against specific Kimberley Process Certification Scheme
requirements. Such KP 'export examination reports' are to be submitted
within one week of the certification examination to the chair of the Working
Group on Monitoring, with a copy to the Ministry of Mines and Mining
Development of Zimbabwe. Pictures of certificates and shipments must be
attached to the 'KP export examination reports'. Finally, the KP Monitor
will perform his tasks under the aegis and supervision of the Kimberley
Process Working Group on Monitoring, and will refer any related issues to
this working group. The KP Monitor may be invited to take part in the
meetings or teleconferences of the working group, at the discretion of the
chair of the working group.

KP Monitor Meetings in Zimbabwe

Courtesy visit to the Ministry of Mines and Mining Development

On 1 March 2010, the KP Monitor arrived in Harare on a three-day visit to
begin the fact-finding mission. He met Mr. Thankful Musukutwa, Permanent
Secretary, Ministry of Mines and Mining Development. At this meeting the
Permanent Secretary proposed a three day programme, including logistics and
resources allocated for the success of the visit. The meeting was followed
by a courtesy visit to the office of the Honourable Obert Mpofu, Minister of
Mines and Mining Development. The Minister assured the KP Monitor that he
would have full access to all relevant government representatives, relevant
diamond production and processing sites as well as to all relevant
stakeholders from mine to the point of export. He reiterated his government's
desire and commitment to comply fully with the minimum requirements of the
Kimberley Process Certification Scheme.

Meeting with KP Joint work plan stakeholders

The KP Monitor then met with officials of numerous state-owned entities and
departments. These included representatives of the Ministry of Mines and
Mining Development (MMMD), Minerals Marketing Corporation of Zimbabwe
(MMCZ), Zimbabwe Mining Development Corporation (ZMDC), the Ministry of
Finance represented by the Zimbabwe Revenue Authority (ZIMRA), Minerals
Unit, and Zimbabwe Republic Police. In addition, industry representatives of
several private companies were present, including Marange Resources, Mbada
Diamonds, Canadile Miners and Global Diamond Valuators, Namibia.

At this meeting, the Permanent Secretary of Mines and Mining Development
introduced the KP Monitor and requested all present to introduce themselves.
He then requested the KP Monitor to present himself to elaborate on the
purpose of his visit. The KP Monitor explained that this was a
fact-finding-mission to Zimbabwe to make preliminary assessments on
operations at the Marange diamond field and to determine his requirements
for technical support in fulfilling his mandate.

Visit to Mbada Diamonds sorting facility

The KP Monitor visited the Mbada Diamonds sorting and valuation facility
housed in a hangar at Harare Airport (referred to as the hangar). The KP
Monitor was received by Dr. Mhlanga, chairman of Mbada Diamonds, chief
executive officer, Mr. Rhuhwaya, and Mr. Dave Kassel, chairman of Reclam, a
company associated with Mbada Diamonds. The Monitor was also received by a
contingent of government department representatives most of whom are
responsible for the monitoring and implementation of the Kimberley Process
Joint work plan.

At Mbada Diamonds, the line management team demonstrated the process of the
movement of diamonds from Marange diamond fields to the Harare sorting and
valuation facility. The team also explained security and control systems at
the facility, chain of custody, as well as policies and procedures for
handling diamonds in and around the 'hangar'. Mbada Diamonds operational
policies and procedures were designed and implemented by Global Diamond
Valuators of Namibia, a consulting firm retained by Mbada Diamonds and
Canadile Miners. Most importantly, management explained and demonstrated
company production pipeline procedures, audit processes, administrative and
document handling procedures.

Findings:

(i) Policies, processes and procedures applied at Mbada Diamonds are world
class on paper and the company needs to build the necessary capacity to
implement them. The company also needs to inculcate a culture of full
compliance with Kimberley Process minimum requirements.

(ii) At the 'hangar' there is an area of the sorting and valuation facility
without cameras. This creates 'blind-spots' and risks breaking the chain of
warrantees. It also creates an opportunity for rough diamonds to be removed
from the security and monitoring control system. The KP Monitor believes
this situation compromises the audit process;

(iii) There is inadequate security around the helicopter landing pad. While
the heli pad is in a secured area, it is also close to a standard fence that
could be ripped apart;

(iv) Representatives of state security agencies present at the 'hangar' do
not seem to be adequately trained or experienced enough to ensure that the
manner in which rough diamonds are handled is fully compliant with Kimberley
Process Certification Scheme minimum

requirements;

(v) There is no visible paper trail to track the movement of rough diamonds
from the safe to cubicles. Management of Mbada Diamonds would like to
believe that the current paper trail is adequate; however the KP Monitor
believes the system can and should be improved.

(vi) The sorting and valuation site requires a senior well-trained and
experienced Diamond Auditor. At present the company has entrusted this
responsibility to a person who does not qualify for the job. However,
management promised they will employ a qualified person to take full
responsibility for implementation of audit policies, processes and
procedures.

Meeting with Global Diamond Valuators

At the end of the Mbada Diamonds visit the KP Monitor requested a
presentation by Global Diamond Valuators Namibia to explain its role and the
nature of contractual relationships between the firm and its clients.
Representatives explained they are retained by Mbada Diamonds and Canadile
Miners as technical advisors to establish policies, processes and procedure
to meet Kimberley Process minimum requirements, particularly the industry
chain of warrantees. In addition, the KP Monitor requested soft and hard
copies of manuals, policies and procedures recommended to Mbada Diamonds and
Canadile Miners. These were provided and are in the custody of the KP
Monitor.

Findings;

(i) Methodologies and tools used by Global Diamond Valuators are consistent
with international best practice, however, there is a possibility that Mbada
Diamonds and Canadile Miners management may receive all the required
knowledge and information but fail to implement systems due to lack of
capacity.

(ii) The duration of the contractual involvement of Global Diamond Valuator
is not certain. This poses a concern on the implementation and
sustainability of the systems.

Meeting with the diplomatic community

The KP Monitor was invited by the Head of Delegation of the European Union
to Zimbabwe, His Excellency, Ambassador Xavier Marchal who hosted a dinner
at his residence for the Heads of the Missions accredited to Zimbabwe from
countries or entities that are Participants in the Kimberley Process
Certification Scheme. Ambassador Marchal advised the Ministry of Foreign
Affairs of the Republic of Zimbabwe through a note verbale that he had
invited Heads of the Missions accredited to Zimbabwe to the dinner. About 20
representatives of participating states and regional economic integration
organisations attended.

In his speech, the KP Monitor explained that he was on a
fact-finding-mission to assess operations at Marange diamond fields and to
determine his staff requirements. In response, members of the diplomatic
community raised a number of issues, including press statements by both
Honourable President Robert Mugabe and Minister Mpofu that the government of
Zimbabwe still had an option to trade diamonds outside the Kimberley Process
Certification Scheme. However, members emphatically shared their commitment
and support for the implementation of the Joint work plan and that revenue
generated from the sale of rough diamonds should be used to rebuild the
Zimbabwean economy and improve the livelihood of its people, particularly
children.

Findings;

Most member countries represented at the dinner fully supported the
implementation of the Joint work plan with some expressing concerns on the
political uncertainty in Zimbabwe.

Visit to Chiadzwa, Marange

On 2 March 2010, the KP Monitor visited the Chiadzwa, Marange diamond fields
for first hand information on mining operations in that area before touring
Forbes, a border post between Zimbabwe and Mozambique. The visit to Forbes
followed claims that diamonds from Chiadzwa were being smuggled through the
borders between the two countries. Chiadzwa, Marange is a group of
diamondiferous, largely alluvial gravel properties in the province of
Manicaland, Zimbabwe. Mining takes place on surfacial alluvial and alluvial
blocks, with open pits hardly reaching three metres depth.

The ground is broken with excavators, loaded into dump trucks using a
backhoe excavator and hauled to the ore bin or stockpile at the plant.

Geologists explain that the ore consists of sands, gravels and pebbles with
minor portions of boulders of conglomerates. All material from the mining
block is processed as discrete batch and thus results can be compared with
the sampling forecast for the block to check the efficiency of the recovery
process. It is estimated that an area of 66 648 hectares (ha) held under 4
special grants that belong to ZMDC. The special grants are identified as
follows:

SPECIAL GRANT NO. AREA COVERED (ha) % OF REA

SG 4718 600 0.90

SG 4719 400 0.60

SG 4720 2100 3.15

SG 4765 63 548 95.35

TOTAL 66 648 100.00

Based on the geological exploration carried out by ZMDC, 11 889 hectares or
18% of the total concession is prospective for diamonds. The remaining 54
759 hectares show low prospects, and further exploration is underway in this
area. The prospective concession area has been demarcated and issued to two
investors with some demarcated but not issued yet.

SPECIAL GRANT NO. AREA COVERED (ha) STATUS

SG 4718 600 Demarcated, not issued

SG 4719 400 Demarcated, not issued

SG 4720 1 100 Issued to Mbada Diamonds

SG 4720 1 000 Issued to Canadile Miners

SG 4765 8 789 Demarcated, not issued

TOTAL 11 889

Aside from the visit to Forbes border post, the KP Monitor's objective was
to (a) identify the total area under the control of ZMDC in Chiadzwa,
Marange, (b) subdivision of resources into manageable areas and (c) assess
mining operation at both Mbada and Canadile mining sites.

Visit to Canadile Miners sorting site

The KP Monitor visited the Canadile Miners sorting and valuation site in
Mutare, Manicaland province.

At the site, the delegation was received by line management and shareholders
of the company. Overall, the sorting and valuation site appeared non
compliant with the Kimberley Process minimum requirements, largely because
their security and monitoring control systems were in-adequate, and diamond
audit systems were equally not up to standard. Understandably, the offices
were only recently occupied and some if not most of their staff had been
recently employed. When the KP Monitor randomly selected an employee, who
happens to be an employee of the MMCZ, for questioning, it became apparent
that he had no idea of activities at the sorting and valuation site, despite
his role as the representative of a state owned entity.

Findings;

(i) Canadile Miners sorting and evaluation site does not meet a voluntary
system of industry self-regulation aimed at facilitating the full
traceability of rough diamond transactions by government authorities;

(ii) Policies, processes and procedures applied at Canadile Miners are world
class in theory and therefore need the company to build the necessary
capacity to implement them. The company also needs to inculcate a culture of
full compliance with Kimberley Process minimum requirements;

(iii) At the sorting and valuation site there is an area without cameras.
This creates 'blind-spots' and risks breaking the chain of warrantees. It
also creates an opportunity for rough diamonds to be removed from the
security and monitoring control system. The KP Monitor believes this
compromises the audit process;

(iv) There is inadequate security around the premises;

(v) Representatives of state security agencies on site are not adequately
trained or experienced enough to ensure that the manner in which rough
diamonds are handled is fully compliant with Kimberley Process Certification
Scheme minimum requirements;

(vi) There is no visible paper trail to track the movement of rough diamonds
from the safe to cubicles. Management of Canadile Miners believes the
current paper trail is adequate; the KP Monitor believes the system can be
improved;

(vii) The sorting and valuation site requires a senior well trained and
experienced Diamond Auditor;

(viii) Back-up of footage from the electronic security system is inadequate;

(ix) Roles and responsibilities of shareholders, management and staff are
blurred and confusing. The KP Monitor was unable to identify the public
office or accounting officer, even though the Managing Director was present
at the meeting;

(x) The KP Monitor deducted, without conclusive evidence, that Canadile
Miners may be encountering financial difficulties. This conclusion, if
correct, contradicts the assertion that the company had committed US$100
million to develop its operation in Marange.

Visit to Mbada Diamonds mining site

The KP Monitor visited the Mbada Diamonds mining site where a relatively
new, but highly mechanised, mining operation was established. The KP Monitor
was received by the same team that met him at the sorting facility; Dr.
Mhlanga, Mr. Rhuhwaya, and Mr. Dave Kassel. The KP Monitor was also received
by representatives of government. At the mine Mbada Diamonds demonstrated
the process of the

movement of diamonds from the mine site to screening, weighbridge, surge
bins, sort boxes, all the way to the lock boxes. The company also
demonstrated health and safety procedures, operational procedure and process
flows. An elaborate security and monitoring control system was demonstrated.
All machines and equipment found at Mbada Diamonds mine site are relatively
new; this includes all mining machinery and equipment. The KP Monitor
concluded that Mbada Diamonds, especially when compared to Canadile Miners,
appears to be funded heavily by a large and established financial
institution.

Findings:

(i) Mbada Diamonds mine is highly geared;

(ii) The company has been mining in the Marange area since late 2009 and
has, stock-piled diamonds;

(iii) Comparing like with like, Mbada Diamonds mine is equipped on par with
medium to large mining operations in Botswana and Namibia. Management
believes the company has built a 'hands-free' mining operation;

(iv) During the visit, security arrangements in and around the mine were
elaborate and highly visible (see section on security situation below);

(v) Operational and geological staff demonstrated knowledge of their mining
operation;

(xi) Representatives of state security agencies present at the mine are not
adequately trained or experienced enough to ensure that the manner in which
rough diamonds are handled meets a voluntary system of industry
self-regulation aimed at facilitating the full traceability of rough diamond
transactions by government authorities;

(vi) The Mbada team (shareholders and management) is intimately involved in
running the business.

Visit to Canadile Miners mine site

The KP Monitor visited the Canadile Miners mining site where a mechanised
mining operation was established. The KP Monitor was received by management
team under a tree where he was briefed about the programme and activities of
the day. Apart from government and parastatal officials, present at the mine
were directors and management of the company. These included, Mr. Rob van
der Merwe, Marco Chioppi, Adrian Taylor, chief executive office, Z Ncube,
Deputy chief executive officer and Gwiba, office Manager. This is the same
team that the KP Monitor had met at the sorting offices.

At the mine Canadile demonstrated the value chain and the process of the
movement of diamonds from mine site to the sorting and valuation office in
Mutare. Canadile machines and equipment at the mine site are 'work in
progress. The splitting of diamonds and non-diamonds is done in a container.
Whilst the KP Monitor was at the mine site, there was construction underway.
The Canadile staff appeared to be working hard to meet Kimberley Process
Certification Scheme minimum standards before the next visit by the KP
Monitor. The Canadile Miners management team has also undertaken to engage
the services of Global Diamond Valuators to expedite implementation of
minimum requirements before the next visit of the KP Monitors and that of
Kimberley Process Review Mission.

Findings:

(vii) Canadile Miners may be experiencing financial challenges;

(viii) The company has been mining in the Marange area since late 2009 and
has stock-piled diamonds;

(ix) Comparing like with like, Canadile Miners mine is currently the size of
a small-scale miner with machinery and equipment that can be moved from one
site to another without much difficulty. ;

(x) During the KP Monitor's visit security arrangements in and around the
mine were sufficient to prevent intrusion;

(xi) The operational and geological staff demonstrated knowledge of their
mining operation;

(xii) Representatives of state security agencies present at the mine are not
adequately trained or experienced enough to ensure that the manner in which
rough diamonds are handled meets a voluntary system of industry
self-regulation aimed at facilitating the full traceability of rough diamond
transactions by government authorities;

(xii) The Canadile miners managing director did not demonstrate active
involvement in running the business. Although he was present, he never
participated in company briefings.

Security at the plant

MBADA

Screened concentrate weighed with truck on a weigh bridge

Weight of concentrate from head feed is captured Weight-o-meters used to
weigh concentrate

Process at DMS double-locked by security and mine management

Process in recovery up to vault is also double locked

Glove boxes have cameras inside to monitor the sorting operation

Sorting operations are hands free

Exporting boxes use self-locking mechanism

Exporting boxes locked with two locks

Access to all diamond areas are controlled by centralised access control
system

Exit from mining area is via an X-ray machine

CANADILE

Count number of scoops from tipper into head feed

Weight concentrate from surge bin recorded again Security personnel on
horses doing rounds

DMS plant is hands free

Conveyor belts screened off with wire mesh

Recovery up to vault is double locked

Glove boxes have cameras inside to monitor the sorting operation

Sorting operations are hands free

Exporting boxes use self-locking mechanism

Export boxes locked with three locks

Access to all diamond areas controlled by centralised access control system

Exit from mining area is via a thorough physical search

Security at the mine

MBADA

Entrances and security exits manned 24 hours

Static security space at 100m intervals

Motorbike units conduct rounds every hour

Dog unit right around the fence area

Control towers Watch towers at corners of the perimeter

CANADILE

Entrances and security exits manned 24 hours

Static security at 100m intervals

Security personnel doing rounds on horses

Night vision cameras along the fence and mining are- linked to central
control tower

Visit to Forbes border post

En route to Harare, the KP Monitor toured the Forbes Border Post. At the
border the delegation was able to briefly meet the head of Zimbabwe Revenue
Agency who explained that she was not authorised to speak on behalf of her
organisation.

Findings:

(i) The government of Zimbabwe has designated Harare International Airport
as the country's official point of export for diamonds and that no border
gate or other exit point was equipped and/or authorised to facilitate the
export of rough diamonds;

(ii) Rough diamonds exported from a border gate or any other domestic
airport is deemed illegal;

(3) On the other hand, the KP Monitor was unable to obtain regulations or
legislation that supports this desired situation. It appears that if a
diamond trader met Kimberley Process minimum requirements and obtained the
Kimberley Process Certificate, he/she could apply for permission to use a
border of his/her choice.

Workshops with Stakeholders in Harare

On 3 March 2010 the KP Monitor arranged one-hour long workshops with
individual key stakeholders at the offices of the Ministry of Mines and
Mining Development. The purpose was to outline individual implementation
plans to prepare templates. The workshop also provided further clarification
for the implementation of the Joint work plan.

Meeting with the Reserve Bank

In a separate meeting with officials of the Reserve Bank of Zimbabwe
(Reserve Bank), two representatives of the bank, Messrs. Manase and Chiremba
explained that as part of the court order, the Reserve Bank was requested to
provide custody for the diamonds in question during the dispute period. The
bank received all the diamonds referred to in paragraphs 3 and 4 of the High
court order in judgment no. HC 6411/07 for safekeeping pending determination
of the appeal noted against the judgment. In fulfilling this request, the
Reserve Bank established a monitoring committee comprising representatives
of the following institutions:

1. Reserve Bank of Zimbabwe

2. Minerals and Marketing Corporation of Zimbabwe

3. Ministry of Mines and Mining Development

4. Office of the President

5. Zimbabwe Republic Police

6. Deputy Sheriff

7. African Consolidated Resources (legal representative)

The Reserve Bank further appointed Mr. Jamal Joseph Ahmed, a diamond
valuator from Premier Diamonds, a company registered in Belgium with offices
in Antwerp. Premier Diamonds was assigned to confirm the weight and value of
the diamonds. members of the monitoring committee were invited to witness
the valuation and sealing of the diamonds. The diamonds were placed in a
trunk and one key was kept by the deputy sheriff and another by African
Consolidated Resources legal representatives. The deputy sheriff also issued
a receipt presented to African Consolidated Resources. The Ministry of Mines
and Mining Development has informed the KP Monitor that its team is
currently seeking legal interpretation of the court order and the
implications.

Meeting with cabinet task force on Marange production

The KP Monitor met with the Zimbabwean cabinet task force on Marange
production. The Task Force was established by government, to monitor
developments in Marange, among other issues. The committee comprises
Honourable Mpofu, Chairman of the Committee and Minister of Mines and Mining
Development, Honourable Biti, Minister of Finance, Honourable Ncube,
Minister of Industry and Commerce, Honourable Mnangangwa, Minister of
Defence, and Honourable Mangoma, Minister of Economic Development and
Investment Promotions.

At this meeting, the KP Monitor briefed the Task force on his activities in
Zimbabwe as part of his factfinding mission. He assured them that Zimbabwe
has the capability and potential to meet Kimberley Process minimum
requirements.

Second meeting with the Minister of Mines and Mining Development

The KP Monitor met the minister at the end of his fact-finding mission. At
this meeting, the KP Monitor informed the Minister that his fact-finding
mission was successful and that he was able to visit every site possible and
met all relevant stakeholders in the time frame provided. The KP Monitor
also informed the minister that he would be preparing a report on his
findings and that a copy would be sent to the minister.

Media Briefing

At the end of the visit, the KP Monitor met members of the media at the
Ministry of Mines and Mining Development. He informed the media that his
mission was accomplished and that he would be reporting to Mr. Stephane
Chardon, chairman of the Working Group on Monitoring who, in turn, would
report to the chairman of the Kimberley Process and the Minister of Mines
and Mining Development, Honourable Obert Mpofu. The KP Monitor ended his
fact-finding mission and returned to South Africa.

Agencies and companies actively involved in mining Marange diamonds

Mining in Zimbabwe is administered and managed by the Ministry of Mines and
Mining Development. Among other issues, the ministry is responsible for
granting mining rights by issuing certificates of registering mining claims,
special grants, mining leases exclusive prospecting orders etc. The ministry
discharges some of its functions through state owned entities such as the
Zimbabwe Mining Development Corporation (ZMDC), a company created by act of
parliament.

Another wholly-owned state entity is the Minerals Marketing Corporation of
Zimbabwe (MMCZ). Its mandate is to sell and coordinate the export of
minerals, for which it receives a commission of (0.875%). It also purchases
rough diamonds from the local market and sell them to diamond manufacturers
and dealers. MMCZ is Zimbabwe's Kimberley Process Certification Scheme
exporting authority. The MMCZ authority is required to keep diamond
production statistics and other related production and export information.

The ZMDC is mandated to invest in the mining industry of Zimbabwe on behalf
of the state. ZMDC operates 26 separate mining companies in Zimbabwe. Some
of its operations include four special grants in the mining area of
Chiadzwa, which are held directly by ZMDC. Together, the company owns
approximately 125 000 hectares of diamondiferous area.

Initially, ZMDC attempted to produce and sell rough diamonds without
partnering with commercial entities. This attempt, which produced 1 366 872
carats over less than three years, was later reconsidered and it was
concluded that joint ventures were the preferred way to grow its technical
and financial capabilities. As at October 2008, the company was allowed to
sell rough diamonds in the open market. An estimated 876 000 carats valued
at US$8,3 million were sold to the open market and a balance of 490 000
carats were kept in stock. Of the US$8,3 million, US$837 000 was paid to the
national fiscus.

Formation of Joint Ventures

Following the Kimberley Process Review Mission, 2009, a report outlining
levels of non-compliance, including the security situation around the
Chiadzwa and Marange diamond fields, the Ministry of Mines and Mining
Development and ZMDC resolved to revise their mining business model. A
decision was taken to consider partnering with commercial mining companies.
According to representatives of the Zimbabwean government, unsolicited
expressions of interest from the mining fraternity were received from
various local and international operators and a file was opened for
applications.

When the government revised its business model, the need arose to select
potential partners. The simplified version of the selection process can be
summarised as follows; prospective investors were selected by the Ministry
of Mines and Mining Development, which was preceded by establishing "a
special purpose vehicle" that represented ZMDC commercial interests. This
company was later named Marange Resources Private Limited (Marange
Resources), a wholly owned subsidiary of ZMDC.

Marange Resources although wholly owned by ZMDC is a private company
registered under Zimbabwe's Companies Act Chapter 24:03. The company was
originally registered as Block Wood Mining and later the name was changed to
Marange Resources.

In July 2009, two companies, namely Core Mining, registered in South Africa
and Grandwell Holdings, registered in Mauritius were considered for joints
ventures with Marange Resources. ZMDC would hold its interests in the joint
venture through Marange Resources. According to a report based on ZMDC oral
evidence to the parliamentary committee on mines and energy, on 8 February
2010, Core Mining Resources is a diamond mining company operating in
Kimberley, South Africa and Grandwell Holdings is a company involved in the
reclamation business with strong a financial and administrative capacity to
put in place a fully fledged mining operation.

Due diligence was conducted on both companies and subsequently the ZMDC
signed a suspensive Memorandum of Understanding with Core Mining and
Grandwell respectively. The report states that the Memorandum of
Understanding with both companies was superseded by the shareholders
agreements signed on 13 and 14 August 2009. The joint venture for Grandwell
was signed on 13 and Core Mining on 14 August 2009.

Issuing special grants

ZMDC then released special grants named 4720 measuring 2100 hectares to Core
Mining and Grandwell Holdings. The special grants were divided in two almost
equal parts. The companies pledged US$100 million investment in the form of
equipment and machinery that would be used for building physical,
processing, water, road and security infrastructure. The agreement also
undertakes to relocate communities within and around the mining fields. An
inter ministerial committee was established to oversee the relocation
programme. This committee included the ministries of local government,
public works, mines and environment.

These joint ventures have resulted in the formation and incorporation of two
distinct companies in which ZMDC (through Marange Resources) has 50% shares.
Grandwell and Marange Resources hold their 50/50 shares in a joint venture
company called Condurango, trading as Mbada Diamonds. Condurango has entered
into a management agreement with joint venture partners, with the
understanding that Condurango will be responsible for the day-to-day running
of the mining operation.

For Core Mining Resources, a new company called Canadile Miners Private
Limited was formed. Unlike Condurango, Canadile Miners partners have agreed
to jointly manage their operations. Both joint ventures have board of
directors. Condurango has ten seats, while ZMDC is allocated five directors
and Grandwell five directors. The chairmanship of the board rotates after
two years. The same arrangement applies to Canadile Miners.

Relocation of affected villagers

A total of 4,207 households have been identified for resettlement to pave
the way for diamond mining operations. Total costs of resettlement have been
calculated by the Ministry of Public Works and Housing at $11,791,644 (Table
1). The investors currently have committed to share the cost equally. New
investors in the area will share the cost on pro-rata. The government has
already identified ARDA Transau farm for resettlement of affected
households. The first phase of the resettlement exercise will see 1,800
households being moved to ARDA Transau farm where each household will get
one hectare for a homestead and half a hectare for crop farming.

The investors have so far built two sample houses at ARDA Transau and sunk
10 boreholes. The existing school and clinic have been renovated. The
investors will install irrigation infrastructure for the settlers.

Small scale miners

The Ministry of Mines and Mining Development is drafting policy and
procedures on handling small scale mining. Among other issues, the ministry
is investigating the roles of each government department and other relevant
key institutions. It is also looking at the definition of small scale miner,
particularly size. To date, no small miner has been licensed to mine. The
ministry indicated that a framework document will be completed by June 2010.
However, mining operations by small miners will begin at a much later stage.

Country internal controls

Mining titles are issued by the Ministry of Mines and Mining Development
(MMMD) after evaluation of the application and due diligence on the
investor. The MMMD carries out periodic mine audits and inspections. The
Zimbabwe Republic Police (ZRP) Minerals Unit also monitors the movement of
diamonds from the mining stage up to the export stage. MMMD and the Minerals
Marketing Corporation of Zimbabwe (MMCZ) are responsible for authorising
exports of diamonds after satisfying themselves that the diamonds comply
with Kimberley Process Certification Scheme requirements. No diamonds can be
exported without the KP certificate.

At the port of exit ZIMRA insists on Kimberley Process certificates being
produced before diamonds can be exported. The diamonds must be sealed and
accompanied by a commercial invoice with the seal number and number of
carats being exported. There is a statutory instrument in place which makes
it mandatory for all diamond producers to comply with minimum Kimberley
Process requirements.

Marange production and sales statistics

For the period October 2006 to 28 February 2010, a production and sales
account of the Marange diamond field is obtainable from the activities of a
number of players as summarised in the table below.

Marange Diamond Field Production Summary, October 2006 to 28 February 2010

Source

Product

volume

(carats) Sales volume (carats) Stock (carats)

Marange

Resources 1,363,566.55 1,083,840.36 279,726.19

Mbada 2,005,298.44 0 2,005,298.44

Canadile 346,551.92 0 346,551.92

MMCZ mop-up 531,222.01 525,167.76 6,054.25

Police/MMMD 25,932.88 25,932.88 472.87

ACR 129,031.87 0 129,031.87

TOTAL 4,401,603.67 1,634,941.00 2,767,135.54

Source:MMMD (2010)

Marange Resources annual production volume, 2007 - 2009

Production Period Diamond recovery (carats)

2007 494,181.95

2008 460,017.20

2009 409,367.40

Total Production 1,363,566.55

Source: MMMD (2010)

Marange Resources Sales Summary, 2008 -2010

Sales Carats

Tender 1 01-Oct-08 101,550.00

Tender 2 01-Mar-09 87,307.09

3,706.63

328,305.01

Tender 3 16-Jun-09 64,305.44

2,445.32

104,260.86

2,005.31

61,028.61

Tender 4 20-Aug-09 17,930.11

30,263.06

73,221.52

Tender 5 27-Jan-10 2,753.73

3,678.18

10,387.95

17,445.83

81,056.81

63,297.66

28,891.24

Total sales 1,083,840.36

Closing stock at 28

February 2010 279,726.19

Source: (2010)

Marange Resources only started sales in October 2008. The slow issuance of
CD1 (currency declaration) forms by the Reserve Bank of Zimbabwe slowed the
export process causing the accumulation of product/stock pile. A paper trail
is available for all transactions entered by Marange Resources. The Ministry
of Mines and Mining Development, through the comptroller and auditor general
is engaging a forensic auditor to reconcile production and sales figures for
Marange diamonds as stipulated in the Joint work plan, Strategic Issue 8.
The exercise will include reconciliation of all diamonds bought by MMCZ and
those from police seizures.

National Production Statistics, 2009

Marange

Resources Mbada Canadile Murrow River Ranch TOTAL

409,367.40 302,115.08 57,537.00 121,863.19 72,617.23 963,499.90

In 2009, Mbada and Canadile only started production in December 2009.

Cooperation and Transparency

In 2009, cabinet set up an inter ministerial task force to oversee Kimberley
Process compliance issues on Marange diamonds, to include investment in the
Marange diamond field and relocation of affected households. The three
political parties to the Global Political Agreement (GPA) are represented in
the inter-ministerial task force whose members include:

Hon O.M. Mpofu (MP) - Minister of Mines and Mining Development, (chair) Hon
T. Biti (MP) - Ministry of Finance

Hon E.D. Mnangagwa (MP) - Ministry of Defence

Hon Professor W. Ncube (MP) - Ministry of Industry and Commerce

Hon E. Mangoma (MP) - Ministry of Economic Development and Investment
Promotion.

In addition, there is the parliamentary portfolio committee on mines and
energy which monitors compliance with best practices. It also monitors the
implementation of relevant legislation and corporate governance by all
players in the diamond industry. A steering committee chaired by the
Ministry of Mines and Mining Development, monitors implementation of the
Joint work plan agreed to with the Kimberley Process Certification Scheme.
Other members of the committee include MMCZ, ZMDC, ZIMRA and ZRP - Minerals
Unit. There is also a committee on border control made up of the ZRP -
Border Control and Minerals Unit, ZIMRA and immigration officials who work
with their counterparts in Mozambique.

A provincial committee chaired by the Ministry of Local Government has been
set up to deal with the relocation process for affected households.

The Committee is made up of officials from:

ˇ Ministry of Local Government

ˇ Ministry of Lands

ˇ Ministry of Public Construction

ˇ Department of Irrigation

ˇ Department of Physical Planning

ˇ District Development Fund

ˇ Environmental Management Agency

ˇ Mutare Rural District Council

ˇ Ministry of Agriculture

ˇ Ministry of Mines and Mining Development

ˇ Zimbabwe Mining Development Corporation

The committee reports to the provincial governor for Manicaland.

Security situation in Marange

Demilitarisation of Marange diamond field appears to be ongoing, in
accordance with the Kimberley Process Administrative Decision and Joint work
plan. As resource areas are demarcated and allocated to joint venture
companies, investors take full responsibility of their areas and are
compelled to secure their areas and operate on hands free auditable systems.
The KP Monitor was informed that there is now complete demilitarisation of
areas under Mbada and Canadile's operations. Both Mbada and Canadile have
secured their areas of operation through physical security barriers (fences
etc) and electronic means.

Industry voluntary self-regulation

The global diamond industry has undertaken to implement a voluntary system
of self-regulation by ensuring an effective internal control system of
diamonds based on the international certification scheme for rough diamonds.
This system includes a chain of warrantees underpinned through verification
by independent auditors of individual companies and supported by penalties
set by industry, which helps facilitate the full traceability of rough
diamond transactions by government authorities. The KP Monitor attempted to
establish levels of compliance by mining companies at Marange diamonds
fields. The results were as follows:

Security situation at Sorting and Valuation facilities

MBADA CANADILE

ˇ Screened concentrate weighed with truck on a weigh bridge

ˇ Count number of scoops from the tipper into head feed

ˇ Weight of concentrate from head feed is captured

ˇ Weight-o-meters used to weigh concentrate

ˇ Weight concentrate from surge bin recorded again

ˇ Security personnel on horses doing rounds

ˇ Process at DMS double-locked by security and mine management

ˇ DMS plant is hand free

ˇ Process in recovery up to vault is also double locked

ˇ Conveyor belts screened off with wire mesh

ˇ Recovery up to vault is double locked

ˇ Glove boxes have cameras inside to monitor the sorting operation

ˇ Glove boxes have cameras inside to monitor the sorting operation

ˇ Sorting operations are hands free

ˇ Sorting operations are hands free

ˇ Exporting boxes use self-locking mechanism

ˇ Exporting boxes use self-locking mechanism

ˇ Export boxes secured with 3 locks

ˇ Exporting boxes are secured with 2 locks

ˇ Access to all diamond areas controlled by centralised access control
system

ˇ Access to all diamond areas controlled by centralised access control
system

ˇ Exit from the mining area is via X-ray machine

ˇ Exit from the mining area is via thorough physical search

Security at the mine

MBADA CANADILE

ˇ Entrances and security exits manned 24 hours

ˇ Entrances and security exits manned 24 hours

ˇ Static security at 100m intervals ˇ Static security at 100m intervals

ˇ Motorbike units conducts rounds every hour

ˇ Security personnel doing rounds on horses

ˇ Dog unit right around the fence area

ˇ Control towers

ˇ Watch towers at corners of the perimeter

ˇ Night-vision cameras along fence and mining area- linked to central
control tower

Landing air strip and security control tower

The KP Monitor visited the well-publicised air strip that is being built in
the area. The mine management team informed the KP Monitor that the airstrip
will be used to transport rough diamonds from the mine to the sorting and
valuation facility in Harare. The KP Monitor was also taken to the security
control tower. The tower is being built on the highest point in the Marange
area.

Matter between Ministry of Mines and Mining Development and African
Consolidated Resources

The KP Monitor was informed by the Ministry of Mines and Mining Development
that African Consolidated Resources Plc, a public company listed on the
London Stock Exchange, has over the past several years, declared a dispute
on mining claims in the Marange diamond fields with the ministry and its
associated institutions. The dispute between the parties culminated into a
High Court ruling in September 2009 with a court order stating the following
(as paraphrased):

ˇ The African Consolidated Resources claims issued to Dashaloo Investments,
Possession Investments, Heavy Staff Investments and Olebile Investments,
which are within the area previously covered by Exclusive Prospecting order
1523 held by Kimberlit Searches are valid and have remained valid since the
date they were originally pegged, and the right granted to a company that is
associated with African Consolidated Resources, shall not apply in respect
of the African Consolidated Resources claims as indicated on Annexure 'B'
(of the application). In that regard it is hereby ordered that Zimbabwe
Mining Development Corporation cease its prospecting and diamond mining
activities in the said area.

ˇ The Court Order further instructs that 129 400 carats of diamonds seized
from African Consolidated Resources offices in Harare January 2007 be
returned to African Consolidated Resources, and the Police be directed to
cease interfering with the African Consolidated Resources prospecting and
mining activities. And that the Ministry of Mines and Mining Development
and/or its associate institutions pay African Consolidated Resources lost on
a legal practitioner and client scale, the one paying the other to be
absolved.

The Ministry of Mines and Mining Development advised that this matter is sub
judice and therefore cannot be discussed in detail until a legal opinion is
obtained from its advisors.

The matter between the ministry of Mines and Mining Development and African
Consolidated Resources is of serious concern. Indications are that the
African Consolidates Resources may file an urgent application to stop
shipment of rough diamonds that were mined from Marange diamond fields. This
action may require Kimberley Process participants and observers to apply
their minds on the matter.

The KP Monitor is of the opinion that the Kimberley Process is mandated by
its participants and observers to ensure that Zimbabwe complies fully with
minimum requirements of the Kimberley Process Certification Scheme. And that
the matter between the ministry of Mines and Mining Development and African
Consolidated Resources is a subject of Zimbabwe's national laws and court
decisions. An attempt to handle the matter outside the courts could easily
draw Kimberley Process participants and observers into a political and
diplomatic disagreement.

The KP Monitor recommends that Kimberley Process should focus on the
implementation of the joint work plan, as envisaged, to ensure that Zimbabwe
is in full compliance with Kimberley Process minimum requirements. In the
event of an urgent application by African Consolidated Resources, Kimberley
Process actions should be guided by a court decision on the matter.

The Way Forward

The following challenges and recommendations are not listed in any
particular order, but focus on issues that may have a negative impact on the
implementation of the joint work plan, directly or indirectly. In listing
these challenges and recommendations, an attempt is made to list only those
that address issues covered in the joint work plan, and relevant to
Kimberley Process minimum requirements.

Challenges Recommendations

ˇ Government agencies have recently deployed civil servants to monitor and
report on the diamond production exports and imports, however, most of these
individuals are not adequately trained or inducted into this new
responsibility

ˇ Ongoing onsite training and coaching be provided to civil servants. Among
other issues, the focus should be on system leakage and audit processes and
procedures. Others may be trained as diamond sorters and valuators.

ˇ Too many government agencies are involved in monitoring and handling rough
diamonds. This poses the danger of diamonds being swapped or stolen in the
process.

ˇ Only the MMCZ, ZIMRA and ZRP should handle rough diamonds. Even with these
three agencies, movement of rough diamonds should be subjected to a
monitoring and security mechanism that can detect the loss or of diamonds.

ˇ ZMDC has issued some special grants and is issuing more such grants.

ˇ ZMDC should accelerate the process of issuing special grants in the
Chiadzwa area since illegal miners may seek to occupy unfenced areas.

ˇ ZRP is permitted by legislation to hold confiscated rough diamonds as
exhibit. The legislation allows ZRP to transport rough diamonds to court as
required.

ˇ Legislation be amended to reduce the risk of diamond swap or loss. In the
event that legislation need not be amended, government may consider the
safe-keeping of rough diamonds at MMCZ (on confiscation and during court
proceedings) and only release them when necessary.

ˇ Zimbabwe Reserve Bank currently holds rough diamonds for safekeeping
pending the court order and Appeal of the court order by the government of
Zimbabwe.

ˇ Zimbabwean Reserve Bank be encouraged to keep rough diamonds only under
extraordinary circumstances, otherwise be discouraged from handling rough
diamonds.

ˇ Mbada Diamonds and Canadile need to increase the chances of providing
accurate rough diamond statistics from production to sorting and valuation.

ˇ These companies be encouraged to install Torex and counting machines at
the mines.

ˇ Mbada Diamonds and Canadile Miners do not have adequate diamond audit
systems.

ˇ These companies need to employ, a full time qualified diamond audit to
increase their chances of complying fully with industry self-regulating
mechanism as agreed by the global diamond industry and Kimberley Process
participants.

ˇ Mbada Diamonds and Canadile Miners have not been able to demonstrate that
their sorting and valuation centres have no blind-spots.

ˇ These companies need to put cameras all around their sorting and valuation
facilities.

ˇ Mbada Diamonds and Canadile Miners claim their sorting and valuation
facilities are fully secured and insured.

ˇ Both companies are requested to submit insurance report from a current
insurer of the sorting and valuation facility stating that the facilities
are fully insured at a value equivalent to the value of its production

ˇ Mbada Diamonds and Canadile Miners claim their electronic surveillance
systems are fully fraud-proof and they guarantee an off-site back-up.

ˇ Both companies are requested to submit an assurance letter certifying that
the electronic security system installed at their sorting and valuation
facilities cover all areas in the facilities and that on request from the
Kimberley Process, they can provide footage of at least three years of
coverage, assuming that their operations continue for such a period.

Other Challenges and Recommendations

In addition, the following additional related challenges and recommendations
should be taken into consideration.

Challenges Recommendations

ˇ Marange diamonds field is a resource-rich region on the one hand but a
politically and economically charged piece of land on the other. The
political and economic leadership in and outside government faces the
challenge of ensuring that revenue generated from the sale of rough diamonds
is used to reconstruct and develop the economy. The challenge is for all
parties

involved to communicate clearly the strategic direction the country would
like to take in exploiting diamond resources in the interest of all people
of Zimbabwe.

The KP Monitor recommends that the Cabinet Task Force on Marange production
must lead an economic strategy aimed at developing and growing the diamond
mining industry in Zimbabwe to create a significant source of revenue for
the state. The strategy will have to be communicated clearly at all levels
of government and industry to solicit the buy in of all key players in the
industry.

The communication of clear messages to communities and other relevant
stakeholders in and around Marange needs to be led by the Cabinet Task Force
and/or its representative bodies.

ˇ Communities in Chiadzwa, Marange are not connected to the mining
activities in the area. They have seen a fence being erected around the
diamond fields, an air strip being constructed, and trucks and bulldozers
working. And they have been informed that they will be relocated. The
national, provincial and local government representatives and their
implementing authorities need to develop an inclusive and well-coordinated
relocation strategy aimed at building consensus on the way in which
relocation should be implemented.

Such relocation of the community may require a well thought out and well
orchestrated plan with involves the participation of all stakeholders,
particularly the local communities and their representatives. It might also
help to remember that the decision to relocate was taken at the height of
the diamond rush and that the circumstances have since changed following the
end of diamond rush.

A national and regional communication strategy and plan is required to
educate and inform the community and all relevant stakeholders on the
rationale, goals and objectives of the relocation.

There must be room for new ideas on the nature of the relocation since this
decision was taken during or around the diamond rush period. New ideas may
include; classification of communities that need to be relocated and
categories of communities such as (a) those members of the community who
would like to secure jobs at the mine (b) those who may want to be paid cash
and start a new life elsewhere; and (c) those who are ready to relocate to a
designated area.

ˇ The government and its associate institutions face a financial crisis, as
a result certain fundamentals are not in place to develop and grow diamond
production in Marange. It might be relevant to consider development
institutions in Africa and the world at large that are mandated to provide
developmental assistance of all types.

The government needs to appoint a team that will research development
institutions such as the African Development Bank, Development Bank of
Southern Africa, Industrial Development Corporation and the European
Community, etc. This takes into account that there are sanctions imposed on
government and government officials.

ˇ The selection of joint venture partners to invest and mine diamonds in the
Marange diamond fields has received much criticism from several quarters.
Numerous documents suggest prospective investors normally apply for grants
and these applications accumulate over time. At a later stage relevant
government institutions process these applications and select some.

The Ministry of Mines and Mining Development may want to consider a more
transparent, credible and predictable system that will enable the ministry
to select applicants for consideration. Such a system will ensure
credibility and accountability in a more transparent and predictable manner.

ˇ The certification and shipment of Zimbabwe's rough diamonds is certainly
going to create a revenue base for the government. The communities where
diamonds are mined are most likely to expect return on the diamond
resources.

The Ministry of Mines and Mining Development may want to consider releasing
statistics on the royalties and company taxes paid to government as well as
dividends declared by the MMCZ annually to demonstrate how the diamond
industry is contributing to the national fiscus. The ministry may also want
to demonstrate how mining in the area is contributing to the development of
infrastructure, job creation, wealth, health and educational development.

ˇ The development of small scale mining is a daunting task for government
due to its complexity and magnitude. The programme that the Ministry of
Mines and Mining Development and other stakeholders have embarked on is
commendable.

The ministry of Mines and Mining Development may want to conduct a benchmark
study on small-scale mining in countries that have similar economic and
mining circumstances. These include Ghana, Sierra Leon and Angola.

ˇ The implementation of the joint work plan Government needs to expedite the
process of requires technical and financial support from participants.
Apparently, that the government has written letters to countries such as
South Africa to solicit technical support engaging these countries to
support speedy implementation of the joint work plan. South Africa and
European Community may be ready to assist government with immediate effect.
The government should direct specific requests for assistance to those
countries that have offered technical assistance, in order to ensure that
areas of greatest need are addressed as a matter of priority.

ˇ Experience has shown that illicit trade in Zimbabwe is most likely to
spill over to its neighbouring countries. There is need for regional
cooperation as recommended by the Working Group on Monitoring and as
foreseen in the joint work plan. Such co-operation may include internal
monitoring controls, security, technology, and coaching and or training. The
DRC as the Vice Chair of the Kimberley Process may wish to consider
championing efforts to promote strengthened regional co-operation, in
consultation with the government of Zimbabwe, in order to ensure that such
regional co-operation is designed to address specific challenges being faced
by Zimbabwe in meeting the minimum requirements of the Kimberley Process
Certification Scheme.

Support for the KP Monitor

ˇ Following the fact-finding-mission, the KP Monitor was able to establish
the magnitude of the tasks ahead and has concluded that to fulfill his
mandate in a professional and diligent manner he needs secretarial and
technical expertise. It would be unrealistic to expect him to fulfill this
task without secretarial and technical support.

Recommendations on the Secretarial and Technical support

ˇ The secretarial support that is required includes the facilitation of
constant communication with all key stakeholders; planning and coordination
of KP Monitor visits to Zimbabwe; compilation of supporting documentation in
preparation for writing periodic reports; monitoring media coverage of the
Marange diamond fields and general administration of the activities of the
KP Monitor. The envisaged secretarial support will ensure that the
collection and, verification of data, as well as certification of
information provided by the Zimbabwean government and industry is accurate.
It will also ensure that periodic reports written by the KP Monitor are
prepared professionally. Additional information may reach the KP Monitor
through sources such as KP Participants, Observers and the Zimbabwean
government.

ˇ The following recommendations are made to expedite the task of the KP
Monitor. The individuals who are recommended are highly competent and are
known professionally to the KP Monitor and with whom the KP Monitor feels
comfortable working. The fact that they are based in the region helps to
keep costs down and makes the co-ordination of regular visits to Zimbabwe by
the KP Monitor easy to co-ordinate, especially in the area of technical
support on site in Marange.

Secretarial

ˇ The KP Monitor recommends Ms. Thuli Magubane, an experienced and
professional project coordinator, be engaged to provide the envisaged. For
the past seven years, she has served the corporate world as an administrator
and coordinator. Her strengths are in establishing programme management
offices (PMOs) designed to administer and coordinate large projects. She has
implemented PMOs in the financial and property industries in South Africa.
Thuli has attended various training courses in programme management office,
project management methodologies and project coordination. For more
information, please consult the resume, which accompanies this report.

Technical

ˇ The KP Monitor recommends Ms. Jennifer Posthumus, an experienced diamond
expert, be engaged to provide the envisaged. With over 20 years of
experience in the diamond industry, Jennifer has sorted and valued large
quantities of rough diamonds into various assortments for optimum yield. In
the past six years, she acquired experience in negotiations with buyers and
sellers in the open market. Jennifer attended various training programmes in
South Africa, Antwerp, London and Israel. She has worked for the De Beers,
group of Companies, including Diamdel, South Africa. Currently, she works
for Degas' Love a rough diamond trading company. Her professional integrity
and ethical standards are beyond reproach. For more information, please
consult the resume which accompanies this report.

Next visit to Zimbabwe

ˇ The KP Monitor is available to visit Zimbabwe from 6 -8 April 2010,
subject to confirmation with chair of the working group on monitoring and
the government of Zimbabwe. The purpose of the visit is to conduct a
thorough examination of individual shipments from any producing area in
Marange and their chain of custody to confirm whether rough diamonds
selected for shipment were produced and prepared in accordance with
Kimberley Process Certification Scheme minimum requirements.

ˇ If compliant, the KP Monitor is required to confirm the certification on
the relevant Kimberley Process Certificate with his signature and stamp, and
will digitally photograph the certificate and shipment. If not compliant,
the KP Monitor will provide to the Ministry of Mines and Mining Development
of Zimbabwe written indications as to the reasons, including any possible
means of remediation. During this period, the shipment will be held until
remedial action is completed, after which the KP Monitor will reexamine the
export and, if fully compliant, certify it and sign the certificate, as
provided in the joint work plan.

ˇ The KP Monitor would like to be accompanied by a diamond expert and a
project coordinator when he visits Zimbabwe.

Conclusion

ˇ The Kimberley Process Certification Scheme remains the only international
system that has successfully responded to conflict resource issues
worldwide. The scheme has successfully and drastically reduced resource
issues on the continent and has contributed to the political and economic
stability of fragile states such as Zimbabwe. The scheme is known for
imposing extensive requirements on its members to enable them to certify
shipments of rough diamonds as 'conflict free' and prevent conflict diamonds
from entering the legitimate global trade.

ˇ Under the terms of Kimberley Process Certification Scheme, participating
states must meet minimum requirements and must put in place national
legislation and institutions; export, import and internal controls; and also
commit to transparency and exchange of statistical data. Participants can
only legally trade with other participants who have also met minimum
requirements of the scheme, and international shipments of rough diamonds
must be accompanied by a Kimberley Process Certificate guaranteeing they are
conflict free.

ˇ The implementation of the joint work plan is critical for meeting these
minimum requirements. - ZimOnline


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Malema and TerreBlanche flip side of same coin

http://www.businessday.co.za/

Published: 2010/04/06 07:49:02 AM

Tim Cohen

timcohen@yebo.co.za

THE slaying of Eugene TerreBlanche is a call to arms, but precisely not the
call to arms that either he or his mirror image, Julius Malema, would ever
issue. His death is a call to arms for the rest of us, the people who are
not seduced by their darkest suspicions, the people who still believe in a
future that will be not defined first and foremost by race, the people who
feel themselves to be the minority but who are actually the majority.

It's a typical South African irony that TerreBlanche, the quintessential
Boer, should be killed at the precise time when Malema is trying to whip up
Zanu (PF)-style hatred about people he describes as "Boers" - in Zimbabwe.
Malema's endorsement of the "Ayesab' Amagwala" song will strike TerreBlanche's
benighted supporters not as a historical artefact but as an explicit
endorsement of farm killings. It's not, of course. It's just the normal,
usual, run-of-the-mill Malema politics at its most typical - pressing into a
grey zone with all the delicacy of an elephant intent on gaining notoriety.

The deeper irony is that TerreBlanche and Malema are flip sides of the same
coin: their techniques, their style, their general ham- fistedness, their
faux-populism, their carefully constructed "outrageousness", their bizarre
media appeal, all come from the same political copybook.

The difference is that TerreBlanche's bubble had long ago been pricked, and
Malema's appears to be inflating at extraordinary speed, with the bewildered
and stunned assistance of the African National Congress's (ANC's) chronic
do-nothing culture.

There was a time when TerreBlanche was as feared at Malema is today. He was
recognised as "extreme", yet he was also given credence as a tip of the
iceberg - a symbol of what Afrikaners would be if they gave in to their
fears.

TerreBlanche always styled himself as a "boer", a farmer, but I once visited
a real farmer whose farm in the Ventersdorp area neighboured that of
TerreBlanche. He told me TerreBlanche was a terrible farmer, and that he
generally farmed nothing.

He also noted with a grin that TerreBlanche did not even study agriculture.
"Hy was a drama student," he revealed.

Far from representing Afrikaners, TerreBlanche was in fact the opposite of
the "nation" he sought to represent; flamboyant, immodest, arrogant, and
generally a klutz - all terrible sins among ever-capable, ever-modest,
ever-resilient, God-fearing farmers. He even struggled to ride a horse.

It's interesting to recall how TerreBlanche collapsed under the weight of
his own falsities. Perhaps this is Malema's ultimate fate. TerreBlanche was
caught having an affair with an attractive, blonde journalist, Jani Allan.
Within his own movement, the affair was a terrible betrayal; he was married,
she was English. So he denied the affair, despite Allan's gushing admission
in her Sunday Times column that, "Right now I've got to remind myself to
breathe ... I'm impaled on the blue flames of his blowtorch eyes."

His denial rebounded on him, and TerreBlanche's extremism came to be
recognised for what it was, a giant paper tiger. TerreBlanche was peddling
hatred, and ordinary people may be intrigued, they may attend his meetings.
The weak-minded might even be inspired. But it takes special circumstances
for hatred to work as political ideology.

One of the things we may have to get used to over the next week or so is the
repeated use of that old Marx quote, "history repeats itself first as
tragedy and then as farce". The problem is that although Terre- Blanche's
death is a personal tragedy, it is not a political tragedy. It's symbolic
not of an attack on farmers, it's an attack on the vulnerable and the
isolated everywhere.

Neither is Malema's repetition of the TerreBlanche methodology a farce. It's
dangerous because the ANC is so scared of itself that it cannot represent
ordinary South Africans who now generally joke about their racial
differences. Racial problems and inequalities exist, but race hatred is an
indulgence of the extremes that belongs to TerreBlanche's generation. He
would do his country its greatest service if he took it with him to his
grave.

- Cohen is a freelance writer.


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Bill Watch 15/2010 - 5th April [No News from Negotiations: ReserveBank Amendment Gazetted]

BILL WATCH 15/2010

[5th April 2010]

The House of Assembly has adjourned until Wednesday 30th June

The Senate has adjourned until Tuesday 16th June

Update on Inclusive Government

The “Agreed Package” announced by President Zuma on 18th March is still shrouded in secrecy, raising the question - did President Zuma really forge an acceptable agreement or is he playing for time until after the FIFA World cup?  On 26th March President Mugabe told the ZANU-PF Central Committee there had been no agreement on the Gono, Tomana and Bennett issues, or on sharing of provincial governorships, and also said “there cannot be any further concessions from us unless the illegal sanctions are gone”. 

Negotiators report ready:  The party teams resumed negotiations on 25th March and presented a “verbal report” on 31st March to the South African facilitation team.  The written report was finished on 2nd April and is being reviewed by the three party principals.  The facilitation team are returning to Harare to discuss it and have said they will insist on broad agreement.  It has already missed the 31st March deadline and this will further delay the comprehensive report which President Zuma is to give to the SADC Organ.  The negotiators have remained tight-lipped about what they have achieved, but Minister Chinamasa has said that the report will list both points of agreement and of disagreements – so it is reasonably clear that points of disagreement remain.  Sources report that unspecified electoral reforms have been agreed but that the Gono, Tomana, Bennett and provincial governors issues have not been resolved. 

Prime Minister wants SADC to break deadlock:  In a statement on 31st March Prime Minister Morgan Tsvangirai praised President Zuma’s “dedication to breaking the impasse” but also said:  “after the most recent round of negotiations it appears that the issues that have stalled progress for more than a year are still being used to avoid creating the open, free and prosperous society that our people demand and deserve.  If this situation continues, I will ask President Zuma to call upon SADC to break the deadlock once and for all.”  [Electronic version of PM’s full statement available on request.]

Indigenisation Regulations

No amendments to the regulations have been gazetted, so the 15th April target date for submission by businesses of completed form IDG01, showing current extent of indigenisation and, if appropriate, indigenisation plans, remains unchanged.  The Minister of Indigenisation and Economic Empowerment announced that changes, if any, would come only after indigenisation plans submitted by businesses under the regulations had been considered by sectoral inter-ministerial committees and the committees had reported on appropriate changes. 

The Regulations are being Examined by the Parliamentary Legal Committee [PLC] which has asked the Speaker for extra time within which to consider the constitutionality and validity of the regulations.  If the PLC reports that provisions in the regulations are inconsistent with the Constitution and if the PLC report is endorsed by the Senate, the offending provisions will have to be repealed by the President unless the House of Assembly resolves they should stand [Constitution, Schedule 4 paragraph 8].  If the PLC reports that the regulations are consistent with the Constitution, but are ultra vires. i.e. beyond the powers conferred on the Minister by the Indigenisation and Economic Empowerment Act, or are otherwise legally unsatisfactory, it will be up to the Minister to decide whether to do something about it – if he does nothing an adverse report would strengthen the case for affected businesses to challenge the regulations in court.  [Veritas Bill Watch commentary on the indigenisation regulations available on request; also available – Zimbabwe Lawyers for Human Rights submission to the PLC and the Portfolio Committee.] 

No Parliamentary Committee Meetings This Week

No Thematic or Portfolio Committee meetings have been scheduled for the week after the Easter break.  Most committees have wound up pending business ahead of the anticipated April commencement of the constitution outreach programme, which will involve nearly all Parliamentarians. 

The State v Roy Bennett: Judgment Postponed to 10th May!

Justice Bhunu was to have given his decision on the defence application for Mr Bennett’s discharge on Wednesday 31st March.  But the judge said his judgment was not ready and postponed the case to 10th May, after the court vacation.  Mr Bennett has now also been summoned to answer charges of contravening the Grain Marketing Act in 2001 – but this appears to be a police initiative not sanctioned by the Attorney-General’s Office, which is to review the docket. 

Farmers Latest Efforts to Have SADC Tribunal Rulings Enforced

A group of dispossessed commercial farmers have applied to the SADC Tribunal for [1] a declaration that Zimbabwe continues to be in contempt of the Tribunal’s earlier orders in the land cases and [2] for an order directing the SADC Summit to take action on Zimbabwe’s failure to uphold the Tribunal’s orders.  [Under the SADC Treaty the Tribunal cannot enforce its orders against a member State; that is a matter for the SADC Summit.]  The Tribunal made a finding of contempt against Zimbabwe in July 2008 and referred the finding to the SADC Summit “for appropriate action”, but the Summit has not yet acted. 

Chiadzwa

Parliamentarians refused access:  the Portfolio Committee for Mines and Energy, under the chairmanship of Hon Chindori-Chininga of ZANU-PF, arranged to visit Chiadzwa last week and travelled to Mutare for the purpose, armed with clearance from the Ministers of Home Affairs.  But the committee was prevented from carrying out its intended inspection of operations, apparently because the Minister of Mines would not grant authorisation for the visit.  

In the Parliamentary Portfolio Committee:  Following the in camera appearance of the Permanent Secretary and Minister before the Parliamentary Portfolio Committee on Mines and Energy the previous week, representatives of the Mbada and Canadile companies appeared before an open meeting of the Committee on 23rd March.  [After initial resistance the Permanent Secretary, the Minister and the company directors eventually recognised the Committee’s right to insist on their presence under the Privileges, Immunities and Powers of Parliament Act.]  

The Kimberley Process Monitor for Zimbabwe, Mr Abbey Chikane, has compiled a report on his fact-finding visit to the country in early March.  One of his observations on the operations at Chiadzwa is: Too many government agencies are involved in monitoring and handling rough diamonds. This poses the danger of diamonds being swapped or stolen in the process.”  [Full report available on request.]

Urban Councils to get Special Interest Councillors

Statutory Instrument 79/2010 [Electronic version available on request.] was gazetted on 2nd April and specifies the numbers of non-voting special interest councillors to be appointed to each of the country’s urban councils by the Minister of Local Government, Rural and Urban Development in terms of section 4A of the Urban Councils Act.  [Section 4A was added to the Act when it was amended in January 2008 as part of the package of reforms agreed by the three political parties ahead of the 2008 harmonised elections.] 

Under section 4A each urban council consists of:

ˇ       one elected councillor for each ward of the council area, and

ˇ       a number of appointed councillors “representing special interests” fixed by Minister for the particular council by statutory instrument, the number fixed not to exceed one quarter of the number of elected councillors.

In statutory instrument 79/2010 the Minister has fixed the maximum possible number of special interest councillors for every urban council, e.g., in  Harare, which has 46 elected councillors, there are to be 11 appointed; in Bulawayo, which has 29 elected councillors there are to be 7 appointed.  

Note: Special interest appointed councillors have been a feature of rural district councils for some years.  The Minister’s appointment of councillors to rural district councils has been criticised as not truly representing special interests, the complaint being that he has simply appointed former ZANU-PF councillors to councils now dominated by MDC-T.  The Minister has claimed his appointees have local government experience that new MDC councillors do not have.  There are no criteria controlling the Minister’s use of the power to appoint special interest councillors.  They hold office “at the pleasure of the Minister” [which means they can be removed by the Minister at any time without any reason given, making it likely that they will follow his instructions].  They do not have a vote at council meetings but otherwise are entitled to participate in the business of the council and to receive the same benefits as elected councillors, e.g., allowances.] 

Legislation Update

Acts:  Four Acts were gazetted this week:

Financial Adjustments Act (8/2009), gazetted and into force 2nd April.  [Passed by Parliament 3rd December 2009]

Public Finance Management Act (11/2009), gazetted and into force 2nd April.  [Passed by Parliament 17th December 2009]  This Act repeals the State Loans and Guarantees Act and the Audit and Exchequer Act, but loans and guarantees previously contracted are not affected and all existing statutory instruments under those Acts continue in force.

Audit Office Act (12/2009), gazetted 2nd April 2010, but not yet in force  [Passed by Parliament 17th December 2009.] This Act will come into force on a date to be fixed by the President by statutory instrument.

Reserve  Bank of Zimbabwe Amendment Act (1/2010), gazetted and into force 31st March 2010.  [Passed by Parliament 9th March 2010.] [Electronic version available on request.]

All Acts of 2009 have now been gazetted. 

Bill in House of Assembly:  Public Order and Security Amendment Bill. [Private Members Bill in second reading stage]

Statutory Instruments: SI 79/2010 provides for Ministerial appointees on all urban councils [see note on Urban Councils get Special Interest Councillors above].  SI 80/2010 provides for customs duty rebates on engine spares, motor vehicles and components for the National Railways.  

 

Veritas makes every effort to ensure reliable information, but cannot take legal responsibility for information supplied

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