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Sadc ‘must rein in rogue regimes’

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:49

Constantine Chimakure in
Johannesburg

THE Southern African Development Community (Sadc), which begins its meetings
this weekend ahead of its annual summit in Luanda, Angola, should revamp its
conflict resolution mechanisms to effectively and emphatically deal with the
political crises in Zimbabwe and other hotspots in the region.
In a communiqué to Sadc at the end of a four-day Southern Africa Civil
Society Forum in Johannesburg, South Africa, on Wednesday, the
non-governmental organisations said the deteriorating political situation in
Zimbabwe, the Democratic Republic of Congo (DRC), Malawi, Swaziland and
Madagascar needed the regional bloc to flex its muscles and rein in the
rogue regimes.

“We call upon Sadc to recognise the DRC, Malawi, Swaziland, Zimbabwe and
Madagascar as problem cases that require the urgent attention of the heads
of states, given the precarious political situation and deteriorating human
rights violations in these countries,” reads the communiqué that was sent to
the Sadc secretariat in Botswana.

“(We therefore call upon Sadc member states to) continue increased
engagement and acknowledge the lack of progress in the ongoing Sadc
mediation processes and call for the review of the Sadc conflict resolution
mechanisms to make them more effective,” the communiqué added.

Zimbabwe has been in a political crisis since 2000. In September 2008, Sadc
facilitated the signing of a global political agreement (GPA) between
President Robert Mugabe’s Zanu PF and the two MDC formations that culminated
in the formation of an inclusive government five months later.

Mugabe was retained as president and his major antagonist, Morgan Tsvangirai
of the main MDC party, became prime minister.

Mugabe and Zanu PF stand accused by the two MDC formations of refusing to
fully consummate the GPA. Several outstanding issues in the pact, among them
the re-hiring of central bank governor Gideon Gono, appointment of
Attorney-General Johannes Tomana and the appointment of provincial
governors, remain unresolved. More sticking issues continue propping up.

Besides the GPA issues, Mugabe and Zanu PF were alleged to have deployed the
military in the countryside to intimidate villagers and perceived supporters
of the MDC ahead of anticipated polls most likely to be held next year.

“We take note of the enhanced engagement of Sadc and the modest advances
made with regard to Sadc mediation processes on political crises in Zimbabwe
and Madagascar,” reads the communiqué. “However, we are seriously concerned
with the lack of progress in Sadc-led mediation efforts in both countries.

“We also note the lack of urgency from Sadc and the African Union with the
evolving political situation in DRC as the country heads to elections,
Swaziland, Zimbabwe, Malawi and Madagascar.” 

In plenary sessions, the executive director of the Sadc Council of
Non-Governmental Organisations, Boichoko Ditlhake, challenged the regional
bloc to isolate Mugabe and Zanu PF for their intransigence to the GPA.

He said Mugabe and his counterparts in the region should desist from
continuing to blame “external forces (entirely) for the crises which are
internally and willfully generated by some of those leaders”.

Ditlhake said the civil society in the region must ensure that Sadc
guarantees free and fair polls in Zimbabwe.

The Zimbabwe government was, during the forum, roundly condemned for failing
to liberalise the public media and stopping hate speech against Mugabe’s and
Zanu PF’s opponents.

The forum called for media reforms across the region, arguing that there was
continued existence of repressive laws and practices in many member states
that negatively affected freedom of the press and restricted access to
information.

“Therefore, we demand Sadc member states to repeal and reform the existing
repressive legislation; ensure media presence in election coverage is
undeterred and unrestricted; guarantee the safety of media practitioners;
ensure state does not have a monopoly over public broadcasting; and enact
laws that guarantee freedom of the media and access to information.

The forum said the immediate task of the region’s civil society would be to
ensure a thorough investigation by Sadc and the African Union Peace and
Security Council into the killing of 19 protesters in Malawi last month, and
get perpetrators to account.

Police in Malawi reportedly opened fire against civilians who were
protesting against acute fuel shortages in the country and calling for the
devaluation of the local currency, among other concerns.

“Swaziland must be put on the agenda of Sadc and that appropriate sanctions
are affected,” the council of the Southern African civil society said. “Sadc
and African Union must assist DRC to ensure legitimate elections and that it
does not slip back into civil war. Sadc must expedite implementation and
finalisation of the peace process in Madagascar.”

The DRC is expected to go to polls before year-end, but reports from
Kinshasa are that the political playing field has not been levelled and is
skewed in favour of the incumbent President Joseph Kabila. Madagascar was
suspended from the 15-member Sadc after a military coup.


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Mugabe readies party for polls

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:45

Brian Chitemba

PRESIDENT Robert Mugabe has ordered members of his Zanu PF politburo to
audit and rebuild collapsing party structures ahead of elections he insists
will be held this year.

Zanu PF officials told the Zimbabwe Independent this week that Mugabe tasked
senior members of his party to rebuild lower structures amid reports that
cells, branches and districts had skeletal membership.

The politburo members would visit the 10 provinces next week to carry out
the restructuring exercise.

Mugabe has repeatedly told the politburo that the elections would be held
this year although the timelines agreed by the Global Political Agreement
(GPA) negotiators show that polls were only feasible next year.

Last year, Zanu PF political commissar Webster Shamu warned Mugabe that Zanu
PF was not ready for elections because of poor structures.

Zanu PF spokesman Rugare Gumbo yesterday confirmed that politburo members
would be deployed in provinces to reconstruct the collapsing structures of
the former liberation movement. He said the programme was being coordinated
by Shamu.

“We are just verifying and auditing our structures, there is nothing amiss
about the programme. Further, our structures are intact and they are not
collapsing,” said the Zanu PF spokesman.

Gumbo could not disclose which politburo members would be sent to provinces.
In Bulawayo, Matabeleland North and South, Zanu PF has skeletal structures
as most of its members joined the revived Zapu. Provincial meetings are
attended by a few members as most of them are boycotting party activities
due to infighting.

However, sources said the visit by politburo members was in preparation of
primary elections expected later this year. 

MDC-T, MDC and civil society have said elections were not possible this year
before implementation of critical reforms, including the writing of a new
constitution. Business and Reserve Bank governor Gideon Gono are also
opposed to early elections.

Mugabe and his erstwhile rival Prime Minister Morgan Tsvangirai formed a
coalition government in 2009 after a bloody 2008 presidential run-off. Under
the GPA, a new governance charter is needed to pave way for elections to
choose a new government.

But the constitution-making process has been delayed by several months due
to lack of funding and bickering between MDC-T and Zanu PF. Copac says the
referendum will be held in January while elections are expected in August or
September next year.

Sources said the politburo members would also deal with fierce factionalism
rocking the party in provinces. Zanu PF is seriously divided as the muffled
succession debate takes toll on the former ruling party. Serving top army
officers have formed a third force in the succession race, which was
dominated by Retired General Solomon Mujuru and Defence Minister Emmerson
Mnangagwa.


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Drop in the ocean for MZWP

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:44

Brian Chitemba

THE Matabeleland Zambezi Water Project (MZWP) is still far from fruition
after it emerged this week that the Ministry of Water Resources only
received US$4 million to implement the project, estimated to cost US$1,2
billion.

The massive project is expected to ease critical water supply problems in
the arid Matabeleland region.

Water Resources minister Samuel Sipepa Nkomo said the State Procurement
Board a fortnight ago gave his ministry the green light to re-engage the
contractor, who will be given the US$4 million to undertake the site
re-establishment, which is expected to be completed early next year.

The money was released recently by the Ministry of Finance from the 2011
budget allocation.  Nkomo said the funds would only cover site
re-establishment at the Gwayi Shangani Dam, which is the first phase of the
MZWP.

Site re-establishment is an insignificant step given that the project was
mooted in 1912 and has been on the cards since then. Lack of financial
support has been blamed for the delays in implementing the project, which in
2007 was estimated to cost US$600 million. 

The contractor, China International  Water Electrical, abandoned the project
in 2005 due to lack of funding and moved equipment off the site.

The Chinese firm was contracted by the Matabeleland Zambezi Water Trust
(MZWT) which used to run the project, but now the Ministry of Water
Resources has placed the contractor under the Zimbabwe National Water
Authority (Zinwa).

Nkomo said his ministry was engaging the Chinese financiers to fund the
construction of the giant Gwayi-Shangani Dam, laying of a 450km pipeline
from the dam to Bulawayo, and another pipeline from the Zambezi River to the
dam. Last year the minister sought partnerships from Botswana but no deal
was sealed after several visits to the neighbouring country. Botswana has
also announced plans to draw water from the Zambezi River.

The MZWP is seen as a panacea to Matabeleland’s perennial water woes due to
recurring droughts. Water rationing is also said to be one of the major
factors that led to companies fleeing from Bulawayo.

Nkomo said Zimbabwe had the right to exploit Zambezi water after the signing
and ratification of the Zambezi Watercourse Commission. The commission was
ratified by eight states connected to the Zambezi River, Angola, Namibia,
Zambia, Botswana, Zimbabwe, Malawi, Tanzania and Mozambique.

“The ratification of the protocol means we can draw water from the Zambezi
River for the benefit of communities in Matabeleland,” he said.

Sipepa Nkomo said unlike in the past when Zanu PF only talked about the
project during election periods, the Water Resources ministry was committed
to seeing the project becoming a reality.

Political parties, observers say, are seeking political mileage from the
project the same way they are tussling over the resuscitation of collapsing
Bulawayo industries.

Observers said Nkomo was also aiming to win MDC-T votes after wrestling
control of the project from Dumiso Dabengwa, who led the revival of Zapu,
while Zanu PF also has interests in the project. Vice President John Nkomo
is the chairman of the MZWT.

If fully implemented, the MZWP would enhance agriculture, boost tourism,
contribute to the mining sector and benefit the Matabeleland and Midlands
regions.


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Zanu PF youths lease out grabbed property

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:33

Nqobile Bhebhe

BUILDINGS taken over by Zanu PF youths from the Indian community in
Bulawayo, under the guise of government’s black economic empowerment
programme, are being leased out to small to medium businesses, it emerged
this week.
This has further widened divisions between the party’s provincial executive,
which is opposed to the seizures, and the youths, who are saying that they
are acting on orders from the top.

In recent months several Indian businesspeople have been disposing of their
unoccupied properties, which Zanu PF youths are targeting.

Isaac Dakamela, the Zanu PF chairman for Bulawayo province, has on numerous
occasions raised concern over the seizures of city buildings by the party
youths.

The youths responded by threatening to remove him from the chairmanship,
accusing him of being a stumbling block to black empowerment.

Zanu PF youths have accused the property owners of charging exorbitant rents
for flats, though some of the apartment buildings they are taking over are
not occupied.

The Zimbabwe Independent was this week shown a list of buildings and firms
earmarked for takeover before December. Nearly 60 buildings are targeted.

“Two weeks ago, a building grabbed from an Indian family along Herbert
Chitepo Street (within the city centre) was partitioned and leased out to
several small businesses,” said the source. The youths are said to be
charging US$300 per partition.

“The youth wing is grabbing buildings so as to present a report during the
December conference expected to be held in Bulawayo. In that report, they
plan to highlight that they have turned unutilised buildings into productive
places for the unemployed.”

Youth provincial chairman, Butholezwe Gatsi on Wednesday dismissed reports
that private residential properties were being taken over by the youths.

 “We are not targeting the residential properties but industrial ones, so
some unscrupulous individuals are using our name to take over residential
properties.

“The youth indigenisation committee was long dissolved and merged with the
main wing which is chaired by Joseph Tshuma,  Zanu PF Bulawayo Province
Secretary for Security,  and this was done to ensure that we have a
coordinated approach as a party in the black empowerment drive,” said Gatsi.

 Some of the buildings that have been invaded include Zambesia and Canberra
flats, and Capri which houses the Pizzaghetti, owned by the Di Palma family
who are of an Italian origin.

Recently, the youths blocked one property owner, Khalil Gaibie, from
evicting tenants from his Elons Court building.


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Zim food security ‘pressing issue’

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:32

Wongai Zhangazha

THE humanitarian situation in the country still remains fragile, with food
security, health, water and sanitation a serious cause for concern.
Millions of people are said to be drinking from unprotected water sources
and living under unhygienic conditions.
Due to the immediate humanitarian needs, aid agencies through the United
Nations Office for the Coordination of Humanitarian Affairs (Unocha), last
week appealed for US$488 million, an increase of US$73 million from the
original requirements of US$415 million.
Key priorities to be addressed by the revised 2011 Consolidated Appeal
Process include improving levels of food security, which have been described
as a “pressing issue,” nutrition, water and sanitation and addressing the
needs of asylum seekers as well as other vulnerable groups.
About nine million people, more than half of Zimbabwe’s estimated 12,3
million people (according to the Central Statistical Office’s population
projections 2010), are set to benefit this year from water, sanitation and
hygiene services, while 8,2 million people will benefit from the health
budget and another 6,2 million people from the money budgeted for
agriculture.
About 4,95 million women and children are in need of immediate nutritional
facilities while 3,2 million pupils, 600 000 teachers and other groups are
targeted to benefit in the education sector.
As of June 30 2011, four million people have benefited from safe water,
hygiene and sanitation while more than three million out of the targeted
seven million people are still in need of safe water and sanitation
services.
However, half of the targeted people have benefited as of mid this year.
According to the report as of June, 1 750 450 students and 49 890 teachers
have been assisted. This is far below the target of more than three million
students and 100 000 teachers and school administrators.
In addition, less than half of the five million targeted people to benefit
from primary health care facilities have been reached while food security
remained an urgent issue after a ‘protracted’ dry spell affected six out of
10 provinces this year.
Permanent secretary in the Ministry of Regional Integration and
International Cooperation Tedious Chifamba said an internal exercise by the
World Food Programme revealed that following extensive crop failure and lack
of other food or livelihood, some districts required immediate food
assistance for nine months instead of the usual four months.
Chifamba said: “Usually vulnerable group feeding is offered for four months
(January to April) during the hunger period.
“WFP estimates that it will soon be responding to the needs of approximately
1,4 million people and requires US$83 million to meet these needs. We
understand, however, that USAid has already contributed US$18,5 million to
meet some of the food needs.”
Due to the dry spell in the six provinces that recorded minimal harvest,
vulnerability, especially among people living with HIV/Aids, child headed
families, women and the unemployed, had increased.
Although there has been stable food availability and marginal improvement in
household incomes, poverty, as defined by generally low income, high
underemployment and unemployment levels, has remained a major challenge to
household food security in both urban and rural areas.
According to Famine Early Warning Systems Network (Fewsnet), Zimbabwe’s food
security outlook for July through to December 2011 released last week,
Binga, Kariba, Mudzi, Umzingwane and Zvishavane districts need to be
monitored closely as they have annual localised food deficits and their
current production was heavily compromised by the dry spells.
The Zimbabwe Vulnerability Assessment Committee (ZimVAC)
rural livelihoods assessment estimated the prevalence of food insecure rural
households to be six percent in July 2010.
This number was projected to increase to 11% between October and December
2010 and further to 15% during the peak hunger season.
“Rates for chronic and acute childhood malnutrition still stand at 35% and
2,4% respectively,” read the review.
“One third of rural Zimbabweans still drink from unprotected water sources.
While the scale of cholera has significantly reduced compared to past years,
localised outbreaks continue due to the poor state of the health and water,
sanitation and hygiene sectors.”
UN humanitarian co-coordinator for Zimbabwe Alain Noudehou said though there
has been improvement in the social economic context in the country and
stability in the humanitarian situation, there are
still some weak areas where
humanitarian assistance was still needed.
He said an announcement by the South African government that it would start
deportations of Zimbabweans by August 1 is expected to result in an influx
of people, increasing the need for assistance.
“I would like to refer to needs related to food insecurity, response to
disease outbreaks like cholera epidemics,” said Noudehou.
“There could also be the need to support Zimbabweans who may be repatriated
from South Africa in the coming months.”
The review also read: “Gains made in the education sector, especially under
the Basic Education Assistance Module, are at risk unless pledged funds are
disbursed quickly.”
Minister of Finance Tendai Biti in his mid-year fiscal policy statement said
according to the second round crop assessment survey, about 164 000
households were confirmed to be in need of food assistance.
This has prompted his ministry to put in place a framework which requires
US$32,4 million to facilitate distribution of food.


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Only 25% of GWP implemented — Biti

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:31

Paidamoyo Muzulu

Only a quarter of the government’s works programme for 2011 had been
implemented by end of June due to lack of capacity as Zimbabwean
professionals continue to seek economic refuge from the Sadc region and
beyond, according to Finance minister Tendai Biti.
Biti told senators who were debating his midterm fiscal policy statement
that this was well below last year’s accomplishment towards this goal as the
inclusive government is struggling with funding.
“The Prime Minister reported in Cabinet that the government works programme
for this year had been implemented by 25% to the end of June 2011 compared
to 35% of 2010, so, we are suffering from lack of implementation capacity,”
Biti told
Biti added that the country’s implementation capacity was further reduced by
the fragility and fluidity of Zimbabwe’s politics that pushed professionals
away.
“When a country goes through some form of conflict and fragility, it loses
70% of its implementation capacity. A lot of this is lost through our
children who live in the diaspora, doctors, lawyers, accountants, scientists
and so on,” Biti added.
He told the upper house that the African Capacity Building Foundation this
year came up with 16 capacity indicators of fragile states, and Zimbabwe
ranked lowly on each of those capacity indicators.
Zimbabwe country faces a shortage of doctors, accountants, lawyers,
engineers and economists in the public to help implement its programmes.
Most of these professionals left the country for the diaspora at the height
of political instability in the last decade.
The two year Government Works Programme(GWP), unveiled by prime-minister
Morgan Tsvangirai in December 2009, included repealing and amending 17
different pieces of legislation in order to democratise the country after a
decade of political haggling.
The programme, along other legislation, wants to introduce media reforms,
security sector reforms, electoral reforms and a land audit before the
holding of any fresh elections.
The programme also intended to implement a land audit on the fast track land
resettlement programme that took place from 2000 when local people invaded
commercial farms and settled themselves haphazardly.
“Timely implementation of this critical dimension (land audit) is likely to
promote accountability and directly enhance productivity in the agricultural
sector. It is therefore one of the critical targets under the government
work programme,” the document said
However, to date no amendments have been effected because of discord within
the shaky coalition government formed in 2009 after the signing of the Sadc
facilitated GPA in September 2008.
Laws that still need to be amended according to the GWP are: Posa, Aippa,
Police Act, Public Health and Health Services Act, and there is need for a
new act to regulate the operations of the Central Intelligence Organisation.
The programme also proposed the enactment of Freedom of Information Bill and
Media Practitioner’s Bill. These bills are expected to increase
accessibility of official information and regulate the conduct of media
practitioners.
However, to its credit, the government has made amendments to Reserve Bank
Act, Public Finance Management Bill and the Office Audit Bill. All these
pieces of legislation were intended to improve public finance management in
the country.
Cabinet ministers will now be required to make monthly reports to the
council of ministers chaired by Tsvangirai, who is in charge of implementing
government policy.
“This document is also intended to help members of parliament … in their
task of holding government ministers to account for their performance,”
Tsvangirai said at the GWP launch.


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Corruption fight: Zanu PF chefs remain sacred cows

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:30

Faith Zaba

PRESIDENT Robert Mugabe has allowed corruption to flourish unchecked among
his close political associates while failure by the police to take action on
a long list of corrupt individuals has created a widespread perception that
it is acceptable in high places.
Over the years Mugabe appeared content to live with corruption, which in
many societies is seen as a cancer which should be fought with relentless
determination.
Despite Mugabe’s posturing over the years about corruption, saying it will
not be tolerated, he has never named corrupt people in his government nor
has he taken action against those named in several audit reports.
However, since the formation of the inclusive government in February 2009,
police have opened dockets against top Zanu PF opponents, including high
ranking officials in government.
While political analysts believe that there should be no sacred cows when it
comes to corruption, they said if the police were serious about dealing with
corruption, it should not be selective in applying the law.
The analysts said Mugabe’s opponents were being arrested at a time when Zanu
heavyweights, who were committing crimes of corruption were being left free,
with police refusing to either arrest or investigate them.
Zimbabweans are waiting to see how the police are going to deal with Prime
Minister Morgan Tsvangirai, who is currently under investigation for
allegedly misappropriating US$ 1,5 million given to him by the Reserve Bank
of Zimbabwe (RBZ) in 2009 to buy an official residence.
The Criminal Investigation Department (CID) have opened a criminal docket
and are intensifying their probe in the case allegedly involving Tsvangirai
and a close relative, Hebson Makuvise, Zimbabwe’s ambassador to Germany.
However, these allegations come at a time when the police are being accused
of launching a crackdown on perceived Zanu PF opponents.
Several top government officials from the two MDC formations have been
arrested and investigated over the past few months.
In March Energy and Power Development Minister Elton Mangoma was arrested on
two separate occasions on charges that he authorised the purchase of five
million litres of fuel from NOOA Petroleum of South Africa, without going to
tender. He was acquitted and absolved of ‘”criminal abuse of office” at the
end of June.
While in April National Healing Minister Moses Mzila-Ndlovu of the smaller
MDC faction was arrested for addressing a Gukurahundi memorial service in
Lupane.
Just last month, police launched investigations into a case in which Finance
minister Tendai Biti is suspected of unlawfully authorising an officer in
his ministry to go on several foreign trips and awarding her per diems at
“special” rates.
However, political analysts said if government was committed about dealing
with corruption, it should demand that all politicians and public officials
should declare their assets and explain to the public how they acquired
them.
Political analyst and publisher Ibbo Mandaza questioned how some top public
servants could afford the lifestyles they lead on their salaries.
“I believe that there is a law whereby public officials should declare their
assets and say where they got the money from. The public has a right to
demand it,” he said.
“All politicians, all public figures, public servants and those in the
private sector must all be vetted. We must all declare our assets and how we
made our money.”
While Transparency International (TI), a global coalition that is fighting
corruption, said there is no political will to fight corruption in Zimbabwe.
TI projects manager for Africa Servaas Feiertag said recently: “There is no
political will to prosecute (alleged corrupt officials) in Zimbabwe.”
“At the moment Zanu PF and MDC are in the government together but there
remains no political will.”
Zimbabwe was ranked 134 out of 178 in last year’s corruption perception
index released by TI.
TI Zimbabwe has over the years been calling for action against high-ranking
government officials, but no action has been taken by the police and
prosecuting authorities.
The analysts said while they are not implying that MDC officials should not
be investigated or arrested for corruption, the police should be balanced
when dealing with this issue.
Political commentator, Blessing Ivan Vava said: “Corruption is bad whether
that person is from Zanu PF or MDC  — anyone embroiled in corrupt activities
should be brought to book, corruption should never be tolerated. It should
be fought from all angles if we want our nation to succeed.”
On Tsvangirai’s probe, Vava believes that: “The continuous allegations about
his (Tsvangirai) personal involvement in corruption have a potential to be a
distraction in the operation of government and in his role as prime
minister.
“Even if you are not guilty, the highest moral ground dictates that if you
are implicated in something that distracts government business, you resign,
especially if you claim to be head of that government.”
Vava added that: “Now ministers and the media are focusing on the corruption
allegations instead of proper government business that brings bread to the
table. With all due respect, he must resign.”
The analysts also gave an example of two recent reports – a damning report
by the comptroller and auditor-general Mildred Chiri for the first quarter
of the 2009 financial year, which exposed corruption through abuse of state
resources by top government officials and the other by Harare City
councillors who accused local government minister Ignatius Chombo and
business tycoon Phillip Chiyangwa of illegal land deals.
In April last year, acting Harare Mayor Charity Bango made a report to the
police implicating Chiyangwa and Chombo.
The alleged land scam was seen by legal experts as a test case to see if the
police had reformed in accordance with the global political agreement, which
states that uniformed forces should be impartial, non-partisan and should
fully appreciate their roles and duties in a multi-party democratic system.
Although the police said last year that they were investigating the matter,
no arrests have been made and none of the people implicated and reported to
the police have been summoned for questioning.
In the comptroller and auditor-general’s report, several ministers and their
deputies and permanent secretaries took away vehicles from the ministries
where they had been working before the formation of the inclusive
government. Gross financial mismanagement was also exposed in the report,
with some ministers being alleged to have diverted state funds for
unauthorised use.
In addition, RBZ governor Gono in 2007 accused top government officials of
being involved in the smuggling out of gold, of which 15 tonnes was smuggled
out every year.
Mugabe even lashed out in an interview to mark his 83rd birthday at
ministers whom he said were greedy and involved in smuggling of gold and
diamonds.
Despite Mugabe’s hypocritical tirade and Gono and the police saying they had
given him the names of people involved, nothing was done.
The only time that a cabinet minister was hauled before the courts was when
former finance minister Chris Kuruneri was arrested in 2004 on allegations
of externalising foreign currency, a charge which analysts say was invented
by Gono when he was appointed in 2003 to position himself as an action man
determined to rid Zimbabwe of an economic disease.
Kuruneri, who spent 15 months in remand prison and a further two years under
house arrest, was acquitted in 2009.
But over the years, several ministers were named in corruption allegations,
but no arrests were made and no police investigations were ever opened.
Examples include the Willowgate scandal, in which several ministers were
proved to have acquired Mazda cars at knockdown prices from the Willowvale
assembly plant in Harare and then resold them for huge profits.
There was also widespread abuse of a VIP housing scheme in 1995, with
relatives and friends of ministers and top military officers and civil
servants issued with luxury homes at low prices.
This scandal was followed soon afterwards by the plunder of the War Victims’
Compensation Fund, set up to help those who had participated in Zimbabwe’s
liberation struggle of the 1970s. Once again, there were no arrests or
prosecution.
Abuse of fuel allocated to new farmers at heavily subsidized prices was
resold on the black market with huge profit margins
As farms were confiscated from white owners from 2000, ministers acquired
multiple farms. Mugabe has so far instituted seven land audits, all of which
have confirmed that most of his ministers and senior police, intelligence
and military officials possessed more than one farm.
In 2006, allegations were made against a number of senior politicians,
concerning misappropriation of funds at the Zimbabwe Iron and Steel Company.
Recently, a number of Zanu PF and government officials have been implicated
in the smuggling of precious ministers since the discovery of diamonds in
the Chiadzwa district of Manicaland.
But if the country is serious about ridding itself of corruption, no one
should be immune to prosecution  —  be it Zanu PF officials or members of
the MDC formations.


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Hwange Colliery workers mull strike

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:00

Reginald Sherekete

HWANGE Colliery Ltd workers are planning to go on strike over outstanding
employee share option schemes which have not be honoured to them by the
company, chairman of the workers’ union Emmanuel Riyano said.
“This is a serious issue to the work force and possible industrial action
will be taken if the outstanding share option scheme is not resolved,” said
Riyano.
Riyano told businessdigest on the sidelines of the company’s Annual General
Meeting (AGM) last week that workers at the colliery have not been issued
with share certificates for shares options they exercised in 2007, with the
single major shareholder Nick van Hoogstraten being a pain in the flesh for
employees, after he continually blocked the scheme.
In the adjourned AGM of  June 30 2011, the British tycoon had again blocked
all extraordinary resolutions on the board, approving an employee share
option scheme, saying the company’s performance was not reflective of the
demands of the employees.
Hwange introduced a share option scheme in 2005 for a period of 10 years to
2014, but in 2007 van Hoogstraten blocked the scheme, yet workers had
already exercised their rights on the options that year.
“The company indicated that there was need to increase the issued share
capital and it has remained a sticky issue up to now and workers are now
impatient as the issue failed to pass through many shareholders’ meetings,”
said Riyano.
To compound the matter further, workers at the colliery have not been able
to exercise their options since 2008 because of the outstanding issues and
some employees have passed on, leaving beneficiaries with no compensation.
“We have widows and we now have a situation whereby some (widows) have also
died and yet still the beneficiaries have not received their shares,” said
the workers’ union chairman.
But in an about-turn, van Hoogstraten gave in at the recently held
controversial AGM that saw the Tendai Savanhu-led board being booted out and
voted for the approval of a new revised share option scheme.
The new proposal sought to consider approval of the 2008, 2009 and 2010
share options which were not exercised and also the extension of the scheme
to 2017.
Shareholders approved the increase in authorised share capital of Hwange
Colliery to 204 million ordinary shares from 186 million for the undertaking
of the proposed new share option scheme.
The company placed 18 million ordinary shares under the control of
directors, which is not more than 10% of total issued capital as per
requirement of the Zimbabwe Stock Exchange.
The workers’ representatives argue that the new proposal was not taking into
consideration the outstanding 2007 shares.
“We want to know if workers will be compensated for 2007 since they had
exercised their options but have not yet received certificates,” said Riyano
in response to the proposal by the company.
Hwange MD Fred Moyo said:  “The 2007 conversion has not been approved by
shareholders but we are working towards regularising the issue so that
workers are compensated their shares.”
“We are going to sit down with management to peg the time frame for them to
resolve the outstanding 2007 shares,” said Riyano.


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Banking sector: Room for optimism

http://www.theindependent.co.zw/

Thursday, 11 August 2011 18:54

Happiness Zengeni

IN spite of the problems currently facing the banking sector in terms of
liquidity, the macroeconomic trends not only provide growth opportunities
for Zimbabwe’s banking industry, but also offer opportunities for it to
revamp the existing business models and diversify income.
Generally there has not been much in the competitive structure of the
banking sector since dollarisation in 2009, with only a few dominant
commercial banks setting the pace. CBZ remains firmly in pole position while
the general view across the market being that most banks have to
recapitalise or offload shareholding to interested investors in order to
boost performance.
The banking sector has continued to witness relative growth in deposits,
loans and advances in the half year although overall demand for credit
continued to outweigh the available supply as evidenced by the premium rates
on lending (average 18% per annum).
While the current low liquidity should have seen an upward movement on
deposit rates as banks compete to attract deposits, these have remained
relatively depressed. Analysts expect lending rates to gradually decline
while deposit rates should also increase as banks compete for customers. The
proliferation of micro-finance houses offering loans and advances will
impact on the net interest margin for banks as the market appears to be
overcrowded.
The RBZ’s roadmap for the entry of foreign banks and the acquisition of
stakes by the foreign entities in Zimbabwean banks has been overshadowed by
the Indigenisation Act and defers proper recapitalisation for the time
being. However, according to research on the banking sector by an
independent market analyst Joana Hwata, the tussle for higher market share
in the already fragmented sector is only set to intensify.
Country risk will remain the greatest hindrance to accessing offshore lines
of credit and with the export sector struggling to recover, the gap between
demand and supply of loanable funds may persist.
The banking sector deposits continue to increase month-on-month, with the
five months to May seeing an increase of 21% to US$2,85 billion,  91% being
short-term deposits. Total loans and advances in the first half of 2011 were
at US$2,01 billion from US$1,09 billion in June while an interbank market
seems to be operating cautiously.
Analysts say there will be little inflows in terms of lines of credit. The
deposits profile is short-term, which will continue to negatively impact on
the banking sector’s ability to on-lend. Further increases in the loan to
deposit ratios are likely to be constrained by the RBZ’s inability to
execute its lender of last resort function in addition to the high level of
credit risk.
According to the mid-term fiscal policy review, the banking sector is
expected to regain its key role in promoting economic growth by providing
credit at affordable rates. However, the current operating environment
characterised by liquidity challenges have seen banks being reluctant to
aggressively advance loans as they fear huge impairments.
Strong credit risk management will remain critical for the management of
impairments, while the use of collateral should enhance recoveries in the
event of defaults.
Non-interest income continues to be the major source of revenue for all
banks as interest income remains subdued owing to the transitory nature of
deposits and the high credit risk.
Profitability of banks has been affected by high operating costs, mainly
driven by staff and administration expenses. However, pressure from labour
union over wages will remain a contentious issue for banks trying to contain
costs.
Looking at individual banks, BancABC looks stable and the group has
continued to report strong financial results. The expansion into the retail
segment of the market has boosted deposits growth, which is aligned with
management efforts to focus on growing net interest income to anchor revenue
growth going forward.
BancABC’s strength will lie in how it aggressively utilises its lines of
credit, given the quality of institutional shareholders they have in their
books.
The coming on board of the micro-finance operation in Zambia, with a wide
branch network, is expected to boost income outside Zimbabwe operations.
Barclays Bank’s conservative approach has seen the bank reporting
disappointing financial results. Despite having huge deposits in comparison
to the other banks, its advances have remained low, impacting on its
capacity to grow net interest income.
While operating expenses have remained high, the non-interest income
component has been stretched to cover expenses. Analysts forecast that the
bank’s approach will remain the same until there’s a sound interbank market.
CBZ continues to hold pole position in terms of assets, deposits, advances
and overall profitability. The group has been aggressive in growing its
market share, in addition to leveraging on its relationship with government
and quasi-government institutions. CBZ has been proactive in the market and
this is yielding positive results as shown by the offshore bond issue.
However, the group needs to keep an eye on its bad loans.
FBC Holdings looks attractive and cheap at the current trading price.
However, financial performance has mainly been driven by its manufacturing
unit, Turnall. Though efforts have been made to reduce costs, analysts feel
that the revenue base of the group has to improve both interest income and
non-interest income.
Kingdom Bank still needs to put more effort on the recapitalisation exercise
and its poorly performing loan book, which is close to the minimum capital
requirement. The bank made a modest profit in 2010 and the market is waiting
to see how it will perform in the half-year to June.


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Rural farmers should go commercial –– Olam

http://www.theindependent.co.zw/

Thursday, 11 August 2011 18:54

ZIMBABWE’S goal of improving rural livelihoods can only be done by
accelerating the shift towards a more commercially-oriented small-scale
agricultural sector that produces goods for identified markets, according to
international agri-products and supply chain management company Olam.
At a recent media briefing, Olam president and regional head of South and
East African operations MD Ramesh pointed out that this depended on
incentivising the rural farmers to go commercial.
One such method was prompt payment of the farmers for their crop at
competitive prices, such as the cash spot payment facility that his company
was using in Zimbabwe.
The other was employing schemes where farmers can access inputs such as
seed, fertilizer and chemicals on credit.
This system, initiated in Zimbabwe by Cottco and employed by Olam in the 28
African countries in which it operates, has scored measurable success.
However, according to Ramesh, ultimate success for the agricultural sector
lay in partnerships between and among the public and private sectors in the
country in growing the sector.
“We believe we are in a very attractive industry with strong growth
prospects,” Ramesh said. Olam, he said, was committed to supporting the
growth and development of agriculture in Zimbabwe and to working towards
economic improvement for the country as a whole and for the people of
Zimbabwe, using its well-known international strength and diversity to
stimulate and enhance economic progress. Ramesh complimented the high
literacy and education skills in Zimbabwe, which put it in a good stead to
compete globally. Olam is a leading global supply chain management
organisation and a processor of agricultural products and food ingredients.
The company operates an integrated supply chain of 20 products in 65
countries, employing more than 18 000 people, delivering these products to
over 10000 customers worldwide.
Products with which the company is involved include edible nuts (such as
cashews, peanuts and almonds), spices and beans, food staples and packaged
foods (such as cocoa and coffee), confectionery and beverage ingredients
(such as rice, sugar, dairy and palm products), industrial raw materials
(such as cotton, wool, wood and rubber) and a range of commodity financial
services.
The company is involved in local maize and soya procurement and wheat
imports for millers, and providing them with credit facilities during low
liquidity periods.
Olam has ginning operations in Zimbabwe, Ivory Coast, Zambia, Uganda,
Tanzania, Mozambique and Nigeria.


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130m kgs tobacco go under the hammer

http://www.theindependent.co.zw/

Thursday, 11 August 2011 18:53

Paul Nyakazeya

A TOTAL 129,5 million kgs of flue-cured tobacco valued at US$ 355,5 million
has gone under the hammer at the country’s three auction floors since the
beginning of the selling season in February, figures released by the
Tobacco Industry and Marketing Board (TIMB) show.
According to TIMB,  the deliveries were 11,79% more than the 115,8 million
kgs valued at  US$338,2 million sold in the same period last year.
The average price at this year’s selling season was US$2,75, a 5,98% decline
from last year’s average price of US$2,92.
Of the 129,5 million kgs sold, Tobacco Sales Floor (TSF) handled 32,1
million kgs valued at US$80,3 million, while Boka Tobacco Floors (BTF) sold
15,1million kgs valued US$34,7 million. Millennium Tobacco Floor (MTF)
handled 9,7 million kgs of tobacco valued at US$23,6 million.
Contract farmers accounted for 72,4million kg valued at US$216,8 million.
BTF and MTF started auctioning a month and half after the selling season
started.
Of the 1 669 022 bales laid, a total of 1 552 067 were sold while 116 955
were rejected.
According to TIMB, Zimbabwe is expecting 177 million kgs this year from 123
million kgs which earned the country US$347,8 million last year.
Zimbabwe is the world’s sixth-largest exporter of the flue- cured Virginia
tobacco. It lags behind Brazil, India, the United States, Argentina and
Tanzania, according to the website of Universal Corp, the world’s biggest
tobacco-leaf merchant.
Fortunes in the tobacco sector have been particularly buoyed by adoption of
the hard currency regime in the country.
Previously, tobacco growers had suffered from delayed payments against the
background of an accelerated erosion of value on the domestic currency which
was under severe assault from runaway inflation.
The tobacco-selling season opened early this year after the TIMB tried to
cushion farmers who needed ready cash.
The industry was prepared for high volumes of tobacco after six other
suppliers of tobacco wrapping material were licenced to avoid shortages that
occurred last season.
No shortage of the packaging material was reported this season. However, the
booking system put in place to reduce congestion at the auction floors was
not as effective as growers continued to bring their tobacco without
registering.
The board had decentralised its booking offices but still some farmers
failed to take advantage of the arrangement.
This resulted in congestion at the Tobacco Sales Floor, which was the only
operational auction floor when the selling season opened.
Boka Tobacco Floors opened late due to renovations while Millennium Tobacco
Floors also came on board although it took long to clear the congestion.
The issue of pricing also came up this season as the sales had to be
temporarily suspended after buyers started offering prices as below as
US$0,10 to US$0,50.
Farmers complained over the decline in prices as they expected prices to
continue firming as the quality of the leaf improved. At the beginning of
the selling season, tobacco was selling at prices ranging between US$3,50 to
US$4,50 per kg during the early days of the selling season.


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Tsvangirai’s leadership qualities questionable

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:21

By Qhubani Moyo

IF there is any term that best defines Morgan Tsvangirai‘s political
character it is that he is a village politician –– he is a political leader
who in many respects is sophomoric.
No doubt he is a pleasant personality and a jolly good fellow, but if truth
be told honestly, without fear or prejudice, Tsvangirai is popular but lacks
leadership qualities, acumen and vision to take Zimbabwe forward.
The facts for this realistic and frank conclusion will follow in this piece
but the reality is that Tsvangirai has been a beneficiary of a protest vote
and Zimbabweans’ profound antipathy towards President Robert Mugabe and Zanu
PF.
Because people have suffered enough and are desperate to remove Mugabe and
Zanu PF from power, they do not want anyone to criticise Tsvangirai. For
some this is almost like a hanging offence, but the issue must be confronted
for the sake of progress and the future.
Regrettably, most Zimbabweans have now built a cult of personality around
Tsvangirai, the same way Mugabe was treated during the 1980s, making it
difficult to truthfully and candidly evaluate his leadership qualities and
ability to rule the country.
While it is not my business to say who should rule the country (it’s a
preserve for the people), it is in the best national interest to interrogate
the issue of Tsvangirai. This is particularly important because of his two
major recent pronouncements. The first to a French magazine where he defined
Professor Welshman Ncube as someone leading a regional party. The second at
the burial of the departed Public Service minister Professor Eliphas
Mukonoweshuro where he said that no one in his party should dare challenge
him.
It is ironic that this statement is coming from Tsvangirai four months after
his party’s congress. It would have been understandable if it was four
months before congress because it reflects a telling tale about his
insecurity.
The question is why does he feel so threatened to an extent of erecting a
Berlin Wall around himself when he still has about five years to go. Could
it be possible that MDC secretary-general Tendai Biti, who was conspicuous
by his absence at the funeral, is breathing hard on his neck? Is Tsvangirai,
who changed his party constitution to serve more than the required two
terms, so much afraid of Biti?
Tsvangirai’s statement about Ncube was just a political cheap shot devoid of
substance, but reflected his chronic poor judgment and other shortcomings.
Tsvangirai’s insinuation that Ncube leads a regional party because he comes
from Matabeleland (as a matter of fact he comes from the Midlands, not
Matabeleland), which in itself is tragic coming from the Prime Minister of
the Republic, shows his limited understanding of nationalism.
By strict definition he himself has never led a national nor democratic
movement. His is leading a party with national aspirations.
What Tsvangirai fails to appreciate is that a party does not become national
because it has seats in most of the provinces of the country or vice versa.
It becomes national because it has a national vision, carries a national
message and has a national programme. The form and content of the party
informs the definition of whether it is national or not. It’s not about
region or ethnicity.
A national party lifts and highlights issues affecting all people in their
diversity onto a national platform and define solutions in a national
context. It’s not about the parochial us versus them mentality, which
clearly defines Tsvangirai’s paradigm.
Tsvangirai is now showing all and sundry that he is either unwilling or
unable to define national issues and propose solutions to problems in a
national context.
That is why with all due respect I think he is a village politician. He may
be well-meaning but his reckless statements and actions usually don’t help
him. While he claims Ncube’s party is regional, he fails to realise that his
own party is in reality in terms of organisational architecture, structure
and control confined to regions.
His appointments to senior positions also testify to that. That’s partly why
Biti is having all sorts of problems in the MDC-T hierarchy.
There is also another compelling variable. While the MDC-T or the united MDC
before the split which Tsvangirai presided over, has done well in all other
provinces, it has failed to make serious inroads in Mashonaland West,
Central and East.
Indeed, if Tsvangirai had managed to take control of the three Mashonaland
provinces, he would by now, despite his limitations, be president of this
country.
Against this background, are we now to make a simplistic conclusion, like
Tsvangirai does, that the MDC-T is a regional party because it has not won
majority seats in Mashonaland provinces?
If we use Tsvangirai’s template the answer would be yes, but if we seriously
interrogate the issue, it is clear the MDC-T has national aspirations. The
same applies to the MDC led by Ncube.
A party can be small in terms of representation in parliament or other
structures of the state, but remain national in outlook. The issue between
Ncube and Tsvangirai, and indeed any other leader for that matter, should
not be about who is leading a national party or not or personal rivalries.
The issue must be who has a national vision and progressive message compared
to the other? Let’s put issues on a national platform and debate without
resorting to name-calling and other such despicable propaganda techniques.
I have great respect for Tsvangirai as a person but his political bankruptcy
sometimes frightens me. I often wonder what Zimbabwe would be like under
Tsvangirai’s leadership and this for me is an important question to ask
given precedents we have seen in Zambia under the late Frederick Chiluba and
elsewhere. Yes Chiluba could have paved a path for Zambia’s transition from
dictatorship to democracy, but he was also an incompetent and corrupt
leader. That is what we must guard against in Zimbabwe.
Probably the best analysis of Tsvangirai’s character as a politician and
leadership qualities I have seen so far came from former United States
ambassador to Zimbabwe, Christopher Dell.
While I sympathise with Tsvangirai because of the ruthlessness with which
Dell dealt with him, I agree with his conclusion in its entirety. In secret
diplomatic cables exposed by WikiLeaks, Dell said:
“Morgan Tsvangirai is a brave, committed man and, by and large, a democrat.
He is the only player on the scene right now with real star quality and the
ability to rally the masses. But Tsvangirai is also a flawed figure, not
readily open to advice, indecisive and with questionable judgement in
selecting those around him.
He is the indispensable element for opposition success, but possibly an
albatross around the necks once in power. In short, he is a kind of Lech
Walesa. Zimbabwe needs him, but should not rely on his executive abilities
to lead the country’s recovery.”
This is precisely the point. I don’t think I can put it any better. I am
aware Dell also said Ncube is “deeply divisive and destructive” but I find
this also aptly describing Tsvangirai in the context of the MDC split in
2005. My conclusion therefore is that as a people we must give Tsvangirai
his dues but let’s also point out his limitations so that we can make
informed decisions about who should run this country after Mugabe.

Moyo is the National Organising Secretary of the MDC led by Professor
Welshman Ncube.


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Muckraker: We all know who has the ‘octopus’ grip

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:17

A TINY correction in the Herald caught our attention last week. It was
headed “Matter of fact” and ran as follows: “In the Herald of July 30 we
carried a story based on an interview with the Zimbabwe Defence Forces
Commander General Constantine Chiwenga.
“In the story General Chiwenga mistakenly stated that the country had
peace-keeping officers in Botswana, Burundi, and Ethiopia.
“Zimbabwe does not have soldiers deployed in the three countries.”
It would be useful if the general knew where Zimbabwe’s forces are currently
stationed.
Meanwhile, the Herald of August 4 carried a picture of President Mugabe
receiving a leopard’s head souvenir from Essar Global vice-chairman Ravi
Ruia at the launch of the New Zimbabwe Steel Co in Redcliff.
How long has this company been in the country and how much game have they
shot out already? Please Mr Ruia, leave our leopards alone.

The Sunday Mail informs us in a story headed “Gays and Lesbians on the
 loose” that police are investigating the “invasion” of a popular club, the
Book Café, by a group of at least 40 gays and lesbians last month.
This provided the Sunday Mail with a pretext to advertise its ignorance.
“They paraded their unholy acts in full view of the public during a
performance by popular Afro-pop artiste John Pfumojena,” we are told.
The Sunday Mail reporters, Lincoln Towindo and Edwin Mwase, completely
ignored a story in the Zimbabwe Independent setting the record straight,
pointing out that while members of the audience did dress up for the
occasion, they were most certainly not gay.
“The funniest rumour, reported as sinister fact by the Sunday Mail,” the
Independent’s Own Correspondent reported on July 15, “was a ‘gay parade’ at
Book Café which turned out to be a bunch of very straight party-time lads
out for a massive booze-up.”
We suspect the Sunday Mail wasn’t interested in correcting its daft story.
It just wanted to persecute people as part of its bigoted agenda. And then
its editors and reporters wonder why they end up on sanctions lists!

Talking of which, who is feeding the president this story about there being
400 British companies operating in Zimbabwe? There may have been 400 here 10
years ago but like everything else that picture has changed. Owing to Zanu
PF’s assault on the economy there are probably half that number now.
And anyway, who would want to invest in a country where the head of state
threatens to “hit” them in retaliation for sanctions? Those companies are
not responsible for the policies of their government. In all probability
they oppose sanctions.
But let’s bear in mind companies will go where the investment climate is
best. That means somewhere where the authorities are friendly and helpful
like Mauritius, Namibia and Ghana. Why should they invest in a country where
a predatory elite wants to seize 51% of their capital?
Zanu PF thinks it is doing companies a favour by allowing them to come and
work here. But anybody listening to ministers like Saviour Kasukuwere will
very quickly take their capital elsewhere. There are many countries which
are happy to have investors and which reach out to them. After all, they
bring with them fresh capital and technological know-how. Most progressive
countries see that as a plus. They also welcome the tax revenues that go
with investment. Not in Zimbabwe it seems. Here the plundering instincts of
a lawless post-liberation aristocracy scares off investors and wrecks growth
and employment prospects.

The Zimbabwe cricket team’s victory over Bangladesh on Sunday was a welcome
relief considering the hammering they have been getting of late.
Understandably the media was awash with adulatory stories of the team’s
exploits. However, ZBC had to take it a notch higher, soaring into the realm
of hyperbole.
“The Zimbabwe cricket team sent shockwaves on the test cricket arena after
cruising to a 130 run victory over Bangladesh at Harare Sports Club this
Monday on the team’s return to test cricket after a six year absence,” ZBC
claimed on Monday.
Defeating Bangladesh, at the lower end of ICC rankings for Tests and one day
internationals will hardly “send shockwaves” as ZBC claims.
What will happen if Zimbabwe manages to defeat India or Australia? Will it
be a tsunami?

Meanwhile, Zanu PF loyalists were this week milking the violence that has
hit the United Kingdom for all that it is worth.
Tafataona Mahoso said the violent protests were expected as the British
government, which claims to be a champion of democracy, is now forced to
have a taste of its own medicine as the violence erupted in an area
inhabited by neglected ethnic and other social groups.
Jonathan Moyo, ZBC reports, said the violence that has hit London has
exposed British authorities’ hypocrisy and double standards as they parade
democratic principles by day yet they exhibits (sic) the opposite by night.
While we know that this is all self-serving drivel from apologists, we have
to point out the British media’s hypocrisy. In light of the United Kingdom
hosting the Olympics next year, should they not be questioning the “security
threat” in their country because of the protests?
Who can forget the overly negative portrayal of South Africa as a
crisis-ridden country before the 2010 World Cup?
A cheeky colleague asked Muckraker if Zimbabwe can issue a travel warning to
nationals not to visit the UK. He went as far as suggesting that Sports
minister David Coltart ask for Zimbabwe to host the Olympics in light of the
“security threat” in the UK.

We were also amused by a ZBC story in which Prime Minister Morgan Tsvangirai
is said to have “baffled” mourners at Public Service minister Eliphas
Mukunoweshuro’s funeral.
“Reports from Warren Hills indicate that Tsvangirai left mourners baffled as
he used the burial of the late MDC-T minister to intimidate and castigate
any candidate within his party who attempted to question or contest his
position as the Western-sponsored party leader.”
Tsvangirai, ZBC adds, re-affirmed his “octopus-like grip” on the MDC-T as he
declared war against any dissenting voices within his party, “a development
that should have left his party supporters questioning the Prime Minister’s
so-called democratic principles which he purports to preach”.
It seems that the mandarins at Pockets Hill did not read Jonathan Moyo’s
latest instalment in the Sunday Mail. From his article it is clear from
where the people refusing to let go of power come from.


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Eric Bloch: RBZ sees realities

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:15

THE Monetary Policy Statement (MPS) recently presented by the Governor of
the Reserve Bank of Zimbabwe,  Gideon Gono, was like several breaths of
fresh air. It demonstrated an awareness of the innumerable constraints still
impacting upon Zimbabwe’s economy, in striking contrast to the recurrent
contentions by so many in the political hierarchy, that all is well save for
the alleged, highly misrepresentative, impact of the so-called “illegal
international sanctions”.
Whilst there has been a minimal economic upturn as evidenced by a marginal
increase in Gross Domestic Product (GDP), the reality is that almost all
economic sectors continue to be confronted by many major restraints in terms
of real and lasting growth, something not acknowledged and admitted by those
politicians.
In contrast, the MPS recognises that most Zimbabweans continue to be plagued
by intense poverty and concomitant hardships, and that reversal of the ills
of the majority of the populace necessitates substantive actions to address
the countless growth restrictions of the many afflicted sectors of the
economy.  Some of the realities highlighted in the MPS included:

    That notwithstanding growth projections for the mining sector are  44%
in 2011, the sector continues to face challenges of lack of funds for
recapitalisation and refurbishment of mining equipment, unsustainably high
costs of production, an uncompetitive investment environment and skills
shortages.

Apart from being underfinanced, the prevailing political uncertainties
around compliance with Zimbabwe’s  Indigenisation law requirements, cast a
dark shadow on the sector.

    That the manufacturing sector faces major challenges of antiquated
plant, equipment and machinery, low effective demand, liquidity constraints,
high competition from imports, and high costs of borrowings.

    That the tourism sector enjoyed improved performance in 2011, but that
performance is expected to be weighed down by non-implementation of an open
skies policy, the deteriorating road and rail network, congestion at
Beitbridge border post, lack of access to Visa card facilities at some
tourist sites, and unavailability of lines of credit to improve the quality
tourism products, and many other factors.

    The financial sector has witnessed the manifestation of structural and
operational deficiencies since 2004, including a shift from core banking
business to speculative transactions, abuse of bank holding company
structures to evade regulation via a web of sinister companies, poor
corporate governance and management practices as well as insider dealing and
abuse of depositors’ funds in pursuit of incestuous self-aggrandisement
schemes.

Their holding companies have wafer thin capital bases, and engage in rapid
local and regional expansion with no proper internal controls and adequate
capacity, and disregard of prudential laws and regulations.
The MPS emphasises that going forward, Zimbabwe needs effective debt
management policies to curtail accumulating debt to unsustainable levels,
concurrently with encouraging mobilisation of domestic savings and foreign
direct investment into the key export and productive sectors.
The statement reinforced the Reserve Bank’s very forthright and commendable
recognition of these and other realities by calling for a diverse range of
positive and constructive policies and programmes to address the myriad of
the economic ills, and to progress a meaningful economic recovery.
Amongst the measures emphasised as necessary was that Zimbabwe must have a
holistic programme covering the entire production chain in agriculture.
That programme needs to encompass security of tenure for farmers, financing,
distribution mechanisms, constructive marketing and pricing, contract
farming, realistic measures for loan recoveries, dispute resolution
mechanisms, and a state role in rural community agricultural production.
In particular, emphasis was placed on the need for security of land tenure
to ensure long-term agricultural planning and access to financing, with
99-year leases being market valued, registrable and executable, enabling
them to be used as collateral for financing of farming operations.
Currently, farmers have no effective and assured ongoing, secure tenure, and
therefore they have no substantive collateral needed in order to obtain
working capital funding.
The Reserve Bank issued a 35 page, comprehensive supplement to the MPS,
urging a constructive sectorial approach to economic  empowerment and
indigenisation.  At the outset of the supplement, Gono emphatically stated
that whilst the Reserve Bank is unreservedly supportive of Zimbabwean
indigenisation and economic empowerment, its pursuit must not be  “any
attempt to hide behind the indigenisation law in order to commit or justify
acts of economic banditry, expropriation and or unfair practices that
suggest that we are not a law-abiding citizenry, or any attempts to parcel
out pieces of the economic cake and opportunities to a few connected cliques
of people, whilst the majority of intended beneficiaries remain with
 nothing”.
Moreover, the governor said that the “law must not be used to multiply
pockets of inefficiency, in as far as utilisation of national resources and
opportunities of the country of the country is concerned”.  He added that
“the empowerment strategy should also take account of the fact that, in
terms of ownership” 73,5% of GDP is already indigenised or under
governmental control.  That statement will undoubtedly be viewed sceptically
by most of the population, and by almost all of Zimbabwe’s political
leadership.
However, the governor did not rest only upon that statement, but
corroborated it with a detailed tabulation.  It demonstrates the GDP
contribution of those governmental or predominantly indigenised enterprises
as including agriculture, hunting and fishing ventures that have a 17,6%
share in GDP, those in the distribution, hotels and restaurants sector
having an 11,1% share, transport and communication enterprises having a 7%
share in GDP, education with a 9,2% share and many other sectors’
enterprises and operations (also predominantly indigenised or under
governmental control) also participating materially in GDP.
The supplement contends that the indigenisation and economic empowerment
thrust must be to improve basic welfare of the nation and reduce poverty in
line with the internationally recognised United Nations Millennium
Development Goals.  It also calls for awareness that “the acquisition of
equity and majority shareholding in companies have minimal short-term
benefits to the indigenous people and should therefore be the medium to
long-term national goals”, instead of being pursued with undue haste.
Hopefully, these sage advices will be heeded by the politicians in general,
and by the Minister of Youth, Indigenisation and Economic Empowerment,
Saviour Kasukuwere, in particular.


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Sadc Summit: Will it be more of the same?

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:09

Paidamoyo Muzulu

ZIMBABWEANS looking forward to the Sadc Summit next week in Luanda, Angola,
to bring finality to the country’s decade-long political crisis are likely
to be disappointed.
Analysts say as in the past the summit was likely to be deadlocked on
critical issues.  The three political parties in the unity government are
not close to any agreement on the GPA’s outstanding issues and indications
are that they will never agree on these remaining matters, the analysts say.
The shaky coalition partners are deeply divided on the issue of sanctions,
and on the security sector, constitutional, media and electoral reforms.
Zanu PF and the two MDC formations have remained stuck in their entrenched
positions.
The summit is expected, among other things, to endorse the roadmap to free
and fair elections agreed to by the GPA negotiating teams.
However, the three parties are divided on when elections should be held and
what needs to be done before the country can hold polls that are credible,
free and fair.
While Zanu PF wants early elections later this year or early 2012 with or
without a new constitution in place, the two MDC formations say general
elections should only be held after the full implementation of the global
political agreement, paving the way for undisputed, credible, free and fair
polls –– a point which Sadc supports.
The previous two Sadc summits on Zimbabwe have called on the partners to
speedily implement the GPA and promised to enlarge the facilitation team by
seconding a committee to join the Joint Implementation and Monitoring
Committee (Jomic). Sadc is still to appoint the team.
Political analysts interviewed by the Zimbabwe Independent believe that the
Luanda Summit will be another talk shop since the outstanding issues are
irresolvable due to intransigence among the political partners.
Constitutional law expert Lovemore Madhuku said the Luanda Summit did not
hold anything for Zimbabwe.
“The parties are engaged in non-resolvable issues. Issues such as
re-staffing of Zimbabwe Electoral Commission and security sector reforms
will not be resolved because the parties are not interested in solving
 them,” Madhuku said.
Madhuku added that the talk about the election roadmap was only a ruse and
polls would only be held when they are constitutionally due.
“Sadc is not the one that decides. Parties have to talk among themselves.
The current roadmap is just headlines or topics. Elections will be held in
2013,” added Madhuku.
President Robert Mugabe and Zanu PF have categorically stated they will not
implement any security sector reforms since they see it as an assault on
Zimbabwe’s sovereignty. Zanu PF has said no to security sector reforms
because according to it, Zimbabwe’s security sector is highly professional
and recognised worldwide.
They further argue that all the other outstanding issues should be resolved
concurrently –– a herculean task even for the most ardent negotiator.
Zanu PF politburo member Jonathan Moyo has opined on different occasions
that “only an early election will settle the dysfunctionality in the
inclusive government.”
Sanctions’ removal is not a simple task since that power resides in other
sovereign powers: the US and EU. To further compound the matter, the US and
EU have since said they will only consider removal of sanctions once the
Sadc-facilitated GPA is fully implemented.
MDC chief negotiator, Regional Integration and International Cooperation
minister Priscilla Misihairabwi-Mushonga confirmed the intricacies of
international diplomacy last week at a public meeting in the capital.
Misihairabwi-Mushonga said Sadc was finding it difficult to bring to
finality the question of security sector reform.
“International diplomacy is a difficult ball game and we are often told to
go back and negotiate among ourselves the country’s problems,”
Misihairabwi-Mushonga said.
South African political analyst Moeletsi Mbeki (pictured) on Sunday said
Sadc’s impotence was clearly represented by the regional body’s failure to
solve Zimbabwe’s political turmoil in a decade.
Mbeki made the remarks at a Sadc Council of Non-Governmental Organisations
Forum in Johannesburg, South Africa.
Mbeki said Zimbabwe was the regional bloc’s biggest test and it had failed
dismally.
“Zimbabwe was their (Sadc’s) biggest challenge and it failed completely to
deal with (President) Mugabe…. If you look at all the fraudulent elections
in Zimbabwe since 2000, where was Sadc?” Mbeki said. “Protocols to sanction
the government’s behaviour were there, but never enforced to deal with the
fraudulent elections that have taken place since Mugabe and Zanu PF lost the
constitution draft referendum in 2000.”
Civil society activist and political analyst Hopewell Gumbo is convinced the
Luanda Summit will not bring much for Zimbabwe because of the political
leadership in the region.
“This summit is going to be another talk-shop. I do not foresee any leader
coming out strongly against developments in the country. The solidarity
among the leaders will always come into play,” Gumbo said.
Angolan president Jose Eduardo dos Santos will take over the chairmanship of
the regional bloc at the summit. Considering that he now rarely travels
outside Angola for fear of a coup, will he be able to effectively deal with
the Zimbabwean question during his tenure?
Sadc’s commitment to solving Zimbabwe’s outstanding problems is never in
doubt but the nature of the issues that are closely linked to sovereignty
makes it difficult. The thing that the regional body can advise, which will
now sound like a vinyl record stuck in a groove, is to say go back and sort
it out among yourselves.


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No democratic transition without security sector reform

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:08

By Takawira Musavengana

THE last few years have witnessed the “Zanufication” of the public service,
traditional leadership structures, youth training centres and the
militarisation of public institutions.
Serving and retired military, police and intelligence officials have been
deployed to key public service positions. These include the electoral
commission, strategic grain reserve, the judiciary, prison services,
permanent secretary positions in government ministries and heads of state
enterprises (parastatals). Some have also joined politics and now serve as
MPs, ministers and provincial governors.
On the face of it, there is nothing irregular about former state security
officials retiring from active service and participating in politics and
public life. It is in fact within their civic and constitutional rights to
do so. However, what is significant is the fact that “retirements” from the
security sector into civilian public institutions have been directly linked
to the active pursuit of a partisan agenda — namely retaining Zanu PF
hegemony.
The pronouncements and actions of newly deployed officials have clearly been
tailored to advance a party political agenda. Some of the affected
institutions have since become avenues of economic plunder.
The militarisation of public institutions also confirms Zanu PF’s increasing
lack of trust in professional public servants to guarantee the entrenchment
project. An example of this phenomenon was the accusation that public
servants, who were seconded to the electoral commission during the 2008
elections, may have rigged the elections in favour of the MDC. This was the
first time in the history of Zimbabwe that such accusations had been made by
a governing party which controls all facets of the electoral process.
National youth service (vocational) training centres have also been
converted into places where young people are indoctrinated with anti-MDC and
pro-Zanu PF rhetoric. In 2008 in particular, some of the national youth
training centres were converted into torture camps, where opposition
supporters were raped and beaten. Together with indoctrinated youths, groups
of veterans of Zimbabwe’s war of liberation — including some who were far
too young to be called veterans of anything — had earlier been at the
forefront of the violent land dispossession campaign, with the support of
the state security sector. Confirmation of the youth militia-state security
alliance was confirmed by interviews that were conducted in August 2003 with
former militia members, who declared that “we are Zanu PF’s ‘B’ team. The
army is the ‘A’ team and we do the things the government does not want the
‘A’ team to do.”
The discovery of diamonds in the eastern parts of the country has proved to
be both a blessing and a curse for Zimbabwe. It was a blessing because it
came at a time when the country’s economy was on its knees and desperately
needed a massive capital injection to breathe life into its crumbling
economy. Much was expected from this natural resource.
But the discovery became a curse when the state security sector, the
military and police in particular, turned the diamond areas into torture and
killing fields, where local villagers were subjected to child labour, forced
labour and wanton violence. Launching a seminal 62-page report entitled
“Diamonds in the Rough:  Human Rights Abuses in the Marange Diamond fields
of Zimbabwe”, Human Rights Watch noted: “The police and army have turned
this peaceful area into a nightmare of lawlessness and horrific violence.
Zimbabwe’s new government should get the army out of the fields, put a stop
to the abuse, and prosecute those responsible.”
Predictably, like all matters involving securocrats and human rights in
Zimbabwe, no prosecutions followed.
Although the military has officially withdrawn from the diamond fields, and
the Kimberley Process (KP) has approved the sale of some of Zimbabwe’s
diamonds resulting in a motley collection of private companies involving
themselves in the business, transparency and accountability are concepts
altogether alien to the diamond trade in Zimbabwe.
Speculation is rife that the lack of transparency in diamond trading and the
secrecy associated with the auctioning of precious stones and ongoing
illicit exportation may in fact be feeding into Zanu PF’s war chest in
preparation for the next elections. It has been argued in some quarters that
apart from President Robert Mugabe’s failing health and related succession
battles in Zanu PF, and the quest to rid the government of the MDC
formations, one of the key factors motivating Zanu PF’s desire for elections
is the freedom from bankruptcy occasioned by the opaque diamond trade.
Indeed, the diamond proceeds have been an unprecedented political
aphrodisiac for Zanu PF. The recent upsurge of violence especially in rural
areas aided and abetted by war veterans and “boys on leave” — who are in
fact military personnel executing an intimidation-filled pre-election
campaign — falls within the JOC’s grand plan of retaining Zanu PF at the
ballot box and with it, preservation of the new-found wealth of the elite.
In response to the gap in the formal institutional architecture of civil
military relations and the apparent violation of the precepts of civilian
control of state security services, the Global Political Agreement created a
supreme policy making organ called the National Security Council (NSC). The
NSC was mandated with reviewing national policies on security, defence and
law and order; reviewing national, regional and international security,
political and defence developments; considering and approving proposals
relating to the nation’s strategic security and defence requirements;
receiving and considering national security reports and giving general or
specific directives to the security services; and, ensuring that the
operations of the security services comply with the Constitution and any
other law.5 Thanks to lack of political will and the security service chiefs’
undisguised disdain for non-Zanu PF elements on the NSC, the body has not
fulfilled any of its major functions, especially that of “ensuring that the
operations of the security services comply with the Constitution and any
other law”. And the JOC remains actively engaged in party political work.
Reforming the security sector should be seen and done within the context of
broader political and economic reforms. As illustrated above, the entry of
the security sector into politics has been driven largely by the desire to
maintain the hegemony of Zanu PF for selfish reasons. Contrary to the
propaganda in the state-controlled media, the offensive has not been driven
by altruistic or nationalistic intentions. It is about the retention of
political power and the related fear of losing not only political power but
economic influence and wealth, most of it ill-gotten. As the case diamonds
shows, unless transparency and accountability are entrenched in the
extractive resources sector, the
To Page 18
appetite of the security sector to remain permanently embedded in the
political economy of the country will remain.
However, at another level, it is important to note that the security sector
is not a monolithic, single-minded body. Socio-economic and political
privileges associated with the land, diamond and minerals economy have
accrued only to a small but very powerful minority of politicians, senior
public officials and securocrats. The majority of low level military, police
and intelligence personnel are professionals and patriots who are obviously
disillusioned with low salaries, politicisation of the security services and
related non-merit based promotions that normally accompany partisan
organisations, and the resultant loss of respect from the public.
It is equally significant to note that most of the senior securocrats who
purport to defend the “objectives of the liberation struggle” are now old by
military standards — in their mid to late fifties — and in the minority.
Although they have all passed the retirement date of either 20 years of
service or 50 years of age as set out in their terms of office, their
contracts continue to be renewed. But below them the ranks must surely now
be dominated by born-frees given that it is 31 years since independence and
considering the regular recruitment of born-frees, and natural and
war-related attrition and retirements. While the senior figures benefit from
the current crisis, the majority of born-free personnel would surely stand
to gain from a quick return to normalcy.
March 2012 will mark a decade of South Africa’s involvement in mediating the
electoral and governance crisis in Zimbabwe, hardly a success for the policy
of “African solutions for African problems” espoused by South Africa, Sadc
and the AU. And unless reform of the security sector is addressed, the
crisis and crisis-mediation could well continue for many years to come.
Returning the troops to the barracks and making the rest of the security
sector professional will require the guarantors of the GPA —  Sadc and the
AU — to tackle the security sector, through inter alia, peer to peer
engagement with sister security services in the sub-region and the
involvement of the appropriate technical structures of the Sadc Organ on
Politics, Defence and Security Cooperation — namely the State Security
Committee, the Public Security Committee, the Defence Sub Committee and the
Chiefs of Police Sub-Committee, through to the Ministerial Committee of the
Organ and the Heads of States’ Troika.
The fact that security forces in the majority of Sadc countries are not
partisan and are not involved in, and do not interfere with, elections and
other democratic processes provides a window of opportunity for mediation at
the level of securocrats.
It is time for the guarantors of the GPA to provide leadership by tackling
and reining in the elephant in the room — the partisan and politicised state
security sector — as provided for in SADC’s own statutes and international
best practices for civil, military and security relations. If they do, then
they will pave the way for real progress towards a new Zimbabwe. If they do
not, then the will of the people will continue to be frustrated by the whims
of the politico-military elite.

    Musavengana is the Human Rights and Democracy Building Manager at the
Open Society initiative for Southern Africa in Johannesburg, South Africa.


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Why sanctions must remain in place

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:06

THE original rationale advanced for imposing sanctions on Zimbabwe is that
they would alter the unacceptable behaviour of the government and those that
presided over abuses. By limiting access to economic resources for elite
members of the regime, sanctions would also limit their capacity to sustain
repression against their own people.
A variety of sanctions and punitive measures have been imposed on Zimbabwe,
including:  the enactment of the Zimbabwe Democracy and Economic Recovery
Act (Zidera) of 2001 by the United States Congress; the suspension of
budgetary support previously provided to the government by the European
Union; the imposition of visa bans and asset freezes by the US, EU, Canada,
New Zealand  and Australia on influential individuals associated with
government and the ruling Zanu PF; and the prohibition of military support
and technical assistance that could enhance the government’s repressive
capacity.
Zidera empowers the US to veto Zimbabwe’s applications to multilateral
lending agencies, such as the International Monetary Fund, the World Bank
and the African Development Bank, for finance, credit facilities, loan
rescheduling and international debt cancellation. Zidera also permits travel
bans and assets freezes to be imposed on individuals regarded as being
responsible for human rights abuses and undermining the rule of law.
In Article 4, the Global Political Agreement (GPA) deals with “sanctions and
measures” imposed by some sections of the international community. The
parties all agreed:
To endorse the Southern African Development Community (Sadc) resolution on
sanctions concerning Zimbabwe;
That all forms of measures and sanctions against Zimbabwe be lifted in order
to facilitate a sustainable solution to the challenges that are currently
facing Zimbabwe; and,

To commit themselves to working together in re-engaging the international
community with a view to bringing to an end the country’s international
isolation.
Sadc and the AU have both called for the removal of sanctions and
restrictive measures against Zimbabwe in order to give the GPA a chance.
The two MDC formations have also been publicly advocating for the removal of
sanctions, although there are allegations that in private they prefer that
targeted measures be retained in order to rein in Zanu PF hardliners.
Meanwhile, Zanu PF asserts that sanctions are intended to turn Zimbabwean
citizens against the government in order to effect regime change and has
taken the position that it will not meet any further GPA obligations until
sanctions are lifted.
However, key sanctions countries maintain that the inclusive government
“...will have to make significant progress before the lifting of sanctions
will be considered” (David Milliband, UK’s Foreign Secretary, 2008).
The sanctions debate needs to be considered in the context of Zimbabwe’s
unique circumstances. There is no doubt that Zimbabwe has faced crises of an
economic, political and social nature. What are contested are the causes.
Zimbabwe experienced a precipitous economic decline in the 2000s with record
breaking hyper-inflation that eventually killed off the national currency.
In 2008, the country was so vulnerable that it struggled to contain a
preventable cholera epidemic, which claimed the lives of around 4 000
people. In the same year, serious political violence followed the first
round of presidential elections with hundreds of supporters of the then
opposition MDC being attacked and killed.
President Robert Mugabe and his Zanu PF party have consistently maintained
that the problems that Zimbabwe faces today have been authored as part of a
neo-colonial and imperialist regime-change agenda. They argue that the MDC
and those calling for democratic reforms are creations of their Western
masters, who want to retain control of their former colonies and maintain
racist white supremacy by proxy.
Those calling for democratic and political reforms, including the MDC,
insist that Zanu PF and its leadership are largely to blame for Zimbabwe’s
current problems. Decades of misrule, ill advised policies, subversion of
the rule of law, corruption, gross abuse of state power and violence against
citizens have all combined to create a huge governance deficit, which is the
root of the country’s problems.
According to the MDC, the Zanu PF government was a moribund regime, which
was determined to retain power at all costs by closing down options for
citizens to exercise popular control over national decision making.The
causes of Zimbabwe’s crisis are obviously much more complex than these two
competing narratives suggest. They include structural issues, the vagaries
of an inequitable global economy and the misguided policies of international
finance institutions of the 1980s and 1990s.
The contention that Zimbabwe has been a victim of global apartheid by the
West because of its courageous stand against neo-colonialism and imperialism
cannot be wished away. It has found currency with sub-regional, continental
and international actors. It must be acknowledged that because of double
standards by the West in demanding good governance in some countries but not
in others, a perception has been created that gives credence to Zanu PF’s
claim that Zimbabwe is targeted for regime change because it has dared to
challenge white supremacy.
There are numerous countries in Africa and around the world whose governance
credentials are no better than Zimbabwe’s but they have not attracted the
wrath of the West in the same manner that Zimbabwe has.  But while this
narrative might have rhetorical power, it is unacceptable to argue that
because the West has not sanctioned the likes of Ethiopia, Uganda, Libya,
Angola and Swaziland for abuses such as manipulating electoral processes,
torture and extra-judicial killings that Zimbabwe should not be sanctioned
for similar actions.
But the real question is not why the international community imposed
sanctions, but whether they have actually strengthened the prospects for
democratisation — or simply made life worse for ordinary citizens.
Since they were imposed, debates have raged about the impact of sanctions,
particularly on the well being of Zimbabwe’s economy. Mugabe and his Zanu PF
party have vehemently argued that sanctions, were the major cause of
Zimbabwe’s economic meltdown and resulted in the unjustified suffering of
ordinary citizens. Often cited is Zidera’s potential to scuttle Zimbabwe’s
chances of accessing much needed international capital through international
financial institutions.
However, there is no evidence to show that the veto provided for in Zidera
has ever been exercised in respect of an application brought by Zimbabwe. In
fact, the real reason that the IMF issued a declaration of non-cooperation
and suspended all technical assistance with Zimbabwe in 2002 was that
Zimbabwe had not been repaying its debts to the Bretton Woods Institutions
since 1999.
There is little evidence to suggest that sanctions are achieving their
objectives or that the behaviour of those who have condoned torture and acts
of violence has been transformed by the travel bans and asset freezes.
While there was a noticeable drop in levels of violence and human rights
abuses in the aftermath of the GPA, there has recently been a marked
resurgence of violence and acts of intimidation directed at the supporters
of the MDC and pro-democracy activists.
The impact of sanctions on political change is always debatable. Proponents
point to the role sanctions played in ending apartheid, while critics point
to the catastrophic failure of sanctions in Iraq, where ordinary people were
the only ones who suffered. The situation becomes even more complicated when
sanctions do not enjoy the full support of the international community — as
is the case in Zimbabwe.
There is no evidence to suggest that the behaviour of those responsible for
repression in Zimbabwe has changed because of the sanctions and other
measures imposed on them.  However, the sanctions have certainly sent a
strong signal that aiding and abetting repression will not be tolerated —
and pointed the finger of blame at specific figures in the political,
military and business elites.  This international condemnation and the
broader isolation of the Zanu PF regime, while not comprehensive, provided
the opposition with critical support in its struggle for democratic space
against a dictatorial regime, which culminated in electoral victory and then
the GPA.
Despite its shortcomings, there was widespread acceptance back in 2008 that
the GPA represented a credible opportunity to achieve democratic transition
in Zimbabwe. It was critical for the international community to win the
goodwill of the regional community — and to support the “solution” that all
three parties had signed up to. A sure way to do that was by removing the
sanctions. Unfortunately, the opportunity was not seized. Instead, by
maintaining the sanctions after the signing of the GPA and the inauguration
of the inclusive government unwittingly presented Mugabe and Zanu PF with
their own opportunity to scapegoat sanctions and use them to escape
responsibility for their subsequent acts of omission and commission and for
delaying key reforms outlined in the GPA.
But now sanctions must remain in place. The recent resurgence of state
sponsored violence directed at those who are perceived as political
opponents of Zanu PF demands intensified isolation of those responsible for
such acts. To the extent that Zanu PF and its backers in the security sector
have consciously chosen to unleash violence against people who hold
different political views and to maintain their grip on power through
unconstitutional means, current sanctions need to be retained.

    Ozias Tungwarara is the director of the Africa Governance Monitoring and
Advocacy Project, a project of the Open Society Foundations — Openspace


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CandidComment: Indigenisation could hurt banking confidence

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:28

Itai Masuku

SO we are about to enter Part III of indigenisation saga. And this time the
main target is the banking sector. Obviously we are to assume that this is a
different type of indigenisation for as far as we can ascertain, nearly 90%
of the banking institutions in this country are already in indigenous hands,
and to borrow an expression, indigenous indigenous hands.

Only three banks, Standard Chartered, Barclays and Stanbic are
non-indigenous and we are also learning that Ecobank is increasingly
becoming foreign owned. For the record, indigenisation of the banking sector
began in earnest more than 15 years ago, when government opened the doors
for indigenous aspirants by lowering the minimum capital requirements for
one to be granted a banking licence. Funny that 15 years later these are
being raised and yet we are talking of indigenising the sector.
While we have been critical of the mischief the majority of banks  in this
country have been up to, we nevertheless recognise the critical role they
play in oiling a nation’s economic engine. And with what we fear is the
direction that may be taken in terms of the few international banks that we
have remaining in our country, we shall end with oil that has lost its
viscosity. We all know what happens when oil loses its viscosity; the engine
eventually ceases as there would be no smooth operation of the engine parts.
Now foreign banks play a vital role in an economy as they provide linkages
with the international banking networks for our industrialists and even
fellow banks. Where an economy is stable, they can also bring in capital to
it as they are also linked to international businesses, giving confidence to
international investors and anyone who may want to do business with and in
the country. The credibility they give to a banking system of a developing
nation such as ours is immeasurable.
This is so important when one considers that the world is increasingly
becoming global and the average global citizen wants to deal with readily
recognisable brands. Evidently, this is less about genuine indigenisation as
it is about self aggrandisement. We know that many, particularly in Zanu PF,
are eyeing those banks for themselves. But lest they forget, those trade
names cannot be used by one not authorised to do so. Secondly, a bank’s
assets are essentially the loans it has advanced to different classes of
borrowers, and the banks basically lend from the money they receive from
depositors. So when a bank reports increasing assets, which is an increasing
loan book, they will similarly balance this with their increasing
liabilities to their customers.
With other forms of asset-grabbing that took place eg on the farmers, the
victims made off with those assets in the form of tractors, combine
harvesters etc. The same principle will apply if there is a whiff that one
Cde Zvavahera has been given Standard Chartered Bank, for instance.
Customers will simply withdraw their money and keep it in their drawers,
ceilings, once again as happened during the lost decade.
Perhaps there were some conspirators that thought that when the run on
foreign banks happens, customers will move to their cronies’ banks. This
will not happen as customers will not even think of taking it to local banks
since their confidence in the banking system will have been perforated, and
we know that banks have been working hard to restore this confidence. Right
now many Zimbabweans have migrated back to the international banks because
it was government itself that made them lose confidence in the local banks.
They should not aggravate the situation.


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Editor's Memo: Urgent reform key to Zanu PF’s survival

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:27

Dumisani Muleya

ZANU PF, formed in August 1963, will this month be turning 48 (the party
would be 50 in 2013 when the next elections are due), amid growing signs
that unless radical and sweeping renewal measures are undertaken, the party
may soon lurch from the political twilight zone it is in towards complete
darkness and obscurity, as the sun rapidly sets on its fairly long history.

This gloomy picture of the situation is increasingly becoming a reality as
the party now finds itself battling for political survival in the midst of a
divisive and debilitating power struggle, at a time when its leader
President Robert Mugabe, at the helm for 34 years, is facing the exit due to
old age and health problems.
Dogged by an explosive and crippling succession crisis, internal strife and
a battered reputation due to leadership and policy failures, as well as an
awful record of violence, brutality, human rights abuses and corruption,
Zanu PF, founded on progressive principles and which fought for independence
on the platform of its predecessors, now finds itself facing the fate of
other former liberation movements particularly Unip in Zambia and Kanu in
Kenya, and in a way the Malawi Congress Party (MCP).
Unip is virtually dead with one seat in parliament, while Kanu is now part
of coalition arrangements. MCP now has 26 out of 193 elected seats.
For Zanu PF, which has a checkered history despite starting as a progressive
movement, to survive and live to tell the tale of the Zimbabwe story it must
reform and change — and do so now. Otherwise, it’s doomed to political
marginalisation or disintegration like some of its former allies.
Having failed to learn anything useful from other liberation struggle
parties like Chama Chamapinduzi in Tanzania, Frelimo in Mozambique and even
the ANC in South Africa, Zanu PF is currently more than anything else
battling for political survival. Judging by the plethora of problems
besetting it and the dismissal failure of its leadership to resolve those
problems — internal and external — it’s going to be an uphill task for the
party to extricate itself from the current situation. Barring dramatic
developments within and outside the party, Zanu PF may well be facing the
fate of Unip, Kanu or MCP.
It is instructive President Mugabe this week attended a meeting of former
liberation struggle parties in Namibia where he could have picked up helpful
lessons on how he could ensure Zanu PF’s survival and secure his own legacy,
but as usual it would be most surprising if he learnt anything progressive
from there. There is so much Zanu PF can learn from within itself and from
other former liberation struggle movements in the region and beyond.
Learning from others doesn’t mean Zanu PF abandoning its own history and
ethos but picking salutary lessons from its allies.
As Zanu PF turns 48 and Mugabe has returned from a meeting of former
liberation struggle movements, the question is: Will the party survive
Mugabe’s departure and possible defeat in the next elections?
In theory it is still possible Zanu PF could survive Mugabe’s exit and
defeat at the polls. However, for this to be possible, the party needs to do
certain things and do them urgently. If Zanu PF has to survive beyond Mugabe
and defeat at the elections, it must urgently resolve the succession issue.
This implies a radical and sweeping leadership renewal plan which could be
implemented gradually but embarked on straight away.
Having come up with a new and hopefully young leadership, the party can the
rework its vision in line with current local and global realities. From this
it can focus on rebranding and realigning its policies, programmes and
messages to capture the public imagination of the majority of voters who are
youths.
In short, Zanu PF must urgently reform, change and adapt, while consigning
to history its record of misrule and ineptitude, or die. If it fails to do
that now it will inevitably suffer the fate of Unip or Kanu. The end is
nigh.


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Comment: Sadc must stay course

http://www.theindependent.co.zw/

Thursday, 11 August 2011 19:26

SADC leaders will once again be meeting on August 17 in Luanda, Angola, for
their annual summit where Zimbabwe will feature prominently in their
deliberations. Zimbabwe has been on the Sadc agenda for the past decade due
to the political stalemate in the country mainly stemming from disputed
elections.
The impasse has had a devastating impact on the economic and social fabric
of the nation. If Zimbabwe had not plunged into crisis, Sadc would be a more
stable, stronger and thriving region.
Now as Sadc leaders meet in Luanda, where Zimbabwe’s political and security
situation would dominate proceedings, it is important to locate the issue in
the context of the region’s democratic reform, transition and consolidation
process.
The most important item on Zimbabwe will be the elections roadmap endorsed
in Sandton, although it needed more detail on timelines and other issues.
After Luanda, Sadc leaders must keep Zimbabwe on the road from dictatorship
to democracy.
The whole point of the GPA and GNU is to ensure the country creates, during
the political interregnum, conditions for free and fair elections to restore
democratic governance and legitimacy, whoever wins the elections.
So Sadc leaders must keep their eyes on the ball and not be distracted by
shenanigans of political parties seeking to control and manipulate the
process. It is clear all sorts of arguments, some bordering on political
insanity, will arise as parties jostle to gain control and influence the
process.
As usual, Zanu PF will have some new and strange representations to make.
Not that Zanu PF is the only culprit, but it never misses an opportunity to
try to manipulate the situation. After failing to hoodwink the nation and
Sadc on the lifespan of the GPA, the elections roadmap, the timing of
elections and Mugabe’s power to call for polls, Zanu PF is back again with a
new spin based on lies and deception to influence the Luanda summit.
For instance, we are now told that South African President Jacob Zuma cannot
remain as Sadc facilitator when he takes over in Angola as chairman of the
Sadc Troika of the organ on politics, defence and security. It is claimed he
will have a conflict of interest when the Zimbabwe issue comes before the
troika meetings. Now a wide gamut of scenarios is being built on false
premises to resolve the alleged conflict of interest.
These include that Sadc must decide whether or not Zuma should remain as
facilitator when he takes over as chairman of the troika of the organ. If he
does take over, it is suggested maybe he could recuse himself when the
Zimbabwe issue comes before the troika of the organ. Or he could postpone
his assumption of the chairmanship. If all this fails, a retired Sadc
president should be appointed facilitator.
This is high-sounding nonsense. Zuma could be facilitator and also chairman
of the organ. As Sadc executive secretary Tomaz Salomao said this week,
former South African President Thabo Mbeki was facilitator and Sadc chairman
at the same time at one point by sheer coincidence.
Besides, Mugabe was once involved in Lesotho and Swaziland situations during
the 1990s while he was chairman of the organ. Zanu PF officials and their
supporters must not have selective amnesia or be conveniently revisionist.
It is false to say if Zuma becomes chairman of the organ while he remains
facilitator that would be “unprecedented” or offensive to principles of
natural justice. There are precedents in Sadc on this issue and hence that
argument collapses on its own.
Zanu PF’s bid to sabotage Jomic must also be thwarted. They want Jomic to
remain ineffective, that’s why they are resisting efforts to reinforce the
body. Sadc must not be fooled. Zanu PF is simply afraid of free and fair
elections and, indeed, democracy.
It is important to realise that Sadc has been slowly but surely changing
over time, although that gradual and incremental shift has sometimes been
stalled in the process by vicissitudes of transition and transformation.
After the gains of Livingstone and Sandton, Sadc leaders meeting in Luanda
must consolidate and accelerate Zimbabwe’s reform agenda to facilitate
transition to democracy, something which will ensure the region becomes a
beacon of peace and stability on the continent. Zimbabwe remains the test
case in this regard.

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