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Bank deadline lines highways with money

The Scotsman

JANE FIELDS IN HARARE
"NICE people," the policeman manning the roadblock in Nyazura, eastern
Zimbabwe, said. "Nice people, beautiful people."

The youth in a blue uniform next to him sniggered. The policeman's tone
changed. "Nice people carry lots of money. Where is your money?"

It was our third roadblock of the day and we were beginning to learn the
ropes. Smile, but not so you look guilty of carrying more than 100 million
old Zimbabwe dollars (about £100). Open car window. Show wallet. Wave to
bags in the back of car. If told to, get out of car and open boot. Get out
bags. Wait by bags on dusty highway as they are searched. Proceed to next
roadblock and go through it all over again.

Across Zimbabwe, police and youth militias - some apparently so quickly
recruited that they haven't had time to collect uniforms - have set up
roadblocks to catch people president Robert Mugabe's government says have
been hoarding heaps of thin paper banknotes known as bearer cheques.

Last month the Reserve Bank governor, Gideon Gono, who has been waging a
losing battle against soaring inflation rates of about 1,000 per cent,
announced people had just 21 days to exchange their old bearers for
"heroes", new banknotes with three zeroes shorn off.

There was a catch. No-one was allowed to hand in more than 100 million old
Zimbabwe dollars. Any more and the money would go straight into
"anti-money-laundering-zero-coupon-bonds" with the holder obliged to prove
he wasn't guilty of economic crimes.

Mr Gono's announcement triggered a wave of panic among not just cash
hoarders and black marketeers, but ordinary Zimbabweans who are terrified to
deposit their money in banks after Mr Mugabe's government closed at least
four of them without warning two years ago. So thousands of people embarked
on a desperate shopping spree, trying to spend all their cash before Monday.

The problem is that shoppers have to somehow get their money to the shops -
and that's where the roadblocks come in. At least 3,200 people were arrested
in the first eight days of the clampdown, some of them after they smuggled
back cash through Zimbabwe's borders with Zambia and Mozambique. State media
triumphantly reported on the seizure of cash stashed in car bonnets and
boots.

Sometimes the police have been a little too enthusiastic. Officials at
Harare airport announced they had seized ten trillion dollars from three
financial institutions that were now under investigation. The banks hit
back. The central bank had "seriously misunderstood" the day-to-day business
of banking, said a spokeswoman for Barclays: the haul was simply cash being
transferred between banking institutions in Zimbabwe, "as is normal business
practice".

Zimbabwe Lawyers for Human Rights is mounting a court challenge to protest
the use of unlicensed youth militias who, in some cases, have stripped
people in their search for hidden cash. But it's not just Mr Mugabe's
traditional opponents who are seething. Some top ZANU-PF officials were
believed to be making heady cash profits from parallel market deals in fuel
and government-provided fertilisers. So angry are they that Mr Gono's life
is now believed to be in danger.

Back in Nyazura, we were waved on. There were seven roadblocks on our
160-mile journey. In the town of Rusape, traders had spied a business
opportunity, selling ice-creams to motorists waiting their turn. "We are
catching lots of people," a female police officer told me near Harare's
Chikurubi maximum security prison. "Lots of money."


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Millers Blame Zimbabwe State Grain Monopoly For Mealie-Meal Shortage

VOA

By Irwin Chivera
      Harare
      15 August 2006

The Internet news site ZimOnline has quoted Zimbabwe Grain Millers
Association Chairman Thembinkosi Ndhlovu as saying the country is out of
maize meal because the state monopoly Grain Marketing Board has no grain to
provide to millers

Supermarkets in Harare, the capital, were out of maize meal on Tuesday and
said no deliveries of the national staple food had arrived in the past two
weeks.

The Grain Marketing Board's acting chief executive officer, Samuel Muvuti,
could not be reached for comment on the ZimOnline report saying the GMB had
no maize.

Grain and Cereal Producers Association President Denford Chimbwanda said,
though, that most farmers have yet to transport their maize to state
granaries because of the severe shortage of fuel needed to process maize on
the cob and take it to market.

GMB and other officials have announced the start of maize collection. But
others say producers in districts like Murehwa and Mtoko, in Mashonaland
East province have become unhappy about the GMB's failure to collect maize
and pay on time.

The government estimates a maize harvest of 1.8 million metric tonnes in the
current market season, but independent sources put the figure at just
800,000 tonnes.


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Health disaster looms at Operation Garikai scheme

Zimbabwejournalists.com

      By Toridza Ngoma

      HARARE - A major health disaster looms at Harare's White Cliff suburb
along the Harare-Bulawayo Road where the Zimbabwe government built basic
houses for people affected by the much-criticised Operation Murambatsvina.

      The core houses, built under Operation Garikai/Hlalani Kuhle, were
occupied before basic infrastructure such as water and sewage systems were
put in place as the government ran out of money.

      A visit to the scheme by zimbabwejournalists.com revealed a few
families had heeded a government call to build blair toilets with most
people preferring to use the bush for toileting.

      "Most of those who heeded the call to build toilets only dug shallow
pits which are already filling up, while the rest are using the bush," an
official with the ministry of construction said yesterday.

      "With people fetching their domestic water from open wells, a health
disaster is imminent, especially with the coming of the hot season."

      Epidemics like cholera and TB thrive in such unhygienic conditions but
the government is not taking any notice, said the official source.

      A resident who spoke on condition she was not named said: "Everything
in Zimbabwe is expensive that is why most of us have resorted to using the
bush as toilets. The houses were just shells when we got them and we needed
money to finish them up and on another hand we need money for toilets, we
just cannot afford it - it is a luxury for now."

      Billions of dollars in cash and building materials which included
bricks, cement, roofing sheets, door and window frames, donated by people
who sympathised with victims of Operation Murambatsvina, are reported to
have been stolen by senior government officials in charge of the project.
This consequently brought the scheme to an abrupt end after the construction
of 474 houses. No investigations are known to have been instituted into the
thefts.

      However, Harare Metropolitan Provincial Administrator, Justin
Chivavaya has since appeared before a Harare Magistrate for allegedly
allocating 300 houses and 115 residential stands to undeserving people, who
have since turned out to be Zanu PF supporters, at Whitecliff Farm.

      Chivavaya, 41, became the second senior government official to be
arraigned before the courts in connection with the case after Harare West
acting district administrator Nelson Mawomo also appeared in court facing
similar charges.

      The two were formally charged with contravening section 4(a) of the
Prevention of Corruption Act and their cases are still with the courts.
Government sources say there are divisions over their arraignment before the
courts since the majority of the houses have been allocated to Zanu PF
members.

      According to a government employee who cannot be named for security
reasons, civil servants, who, like victims of Operation Murambatsvina, had
been promised houses under the scheme, have also lost out as it is most
unlikely that more houses will be built following the rampant theft of
building materials meant for the scheme.

      Chivavaya and Mawomo, who are also senior Zanu PF officials, allegedly
allocated the houses to their relations and Zanu PF members and pocketed
more than Zd$3 billion (not revalued) after collecting Zd$10 million from
each of the tenants before they moved in.

      An undisclosed number of civil servants have since lost the Zd$615 000
they each deposited with the City of Harare as administrative fees after
being promised houses under the scheme.

      "At the time we paid the money, $615 000 was a lot of money, but now
it's not even worth following as it has been eroded by inflation," said a
civil servant who had expected to benefit from the scheme.

      When Harare governor, David Karimanzira discovered that the houses had
already been allocated to the wrong people, he tried to reverse the process,
but failed as the Zanu PF supporters refused to move out. They argued they
had paid Zd$10 million each and had invested heavily in the houses as some
had already plastered, floored, painted and put window and door frames on
the houses using their own money.

      After the intervention of Local Government Minister, Ignatius Chombo
and Manyame MP, Patrick Zhuwawo, Karimanzira eventually agreed to let the
occupants stay because they were ruling party members and had invested a lot
in the houses.


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"Insensitive" Mugabe Gets Luxury Mansion

Institute for War and Peace Reporting

For most Zimbabweans, leader's new home is proof that government profligacy
starts with the presidency.

By Dzikamai Chidyausku in Harare (AR No.74, 15-Aug-06)

Unperturbed by the plight of millions living in poverty around him in a
country with a battered and failed economy, Zimbabwe's president Robert
Mugabe has moved into a multi-million dollar retirement palace that has been
built over the past five years.

The spread, with 25 ensuite bathrooms, has cost in excess of 26 million US
dollars to build in a country where most people earn less than the
equivalent of eleven dollars a month. But the move into the palace - three
times the size of the official presidential residence, State House - could
be a sign that 82-year-old Mugabe is finally preparing for retirement. He
has said he intends retiring in 2008, though speculation has been intense
this year that he will amend the constitution to extend his rule until 2010.

The mansion is also indicative of the corruption and extravanganza of good
living Mugabe's ZANU PF government has indulged in as the country crumbles
around them.

University of Zimbabwe political scientist John Makumbe, a member of the
anti-corruption group Transparency International, said the palace
demonstrates Mugabe's "insensitivity to the plight of the people he leads .
He is happy to live like a monarch while the rest of the country is mired in
poverty. It just shows that corruption begins at the top of the government
because Mugabe's salary of roughly 57,000 dollars a year and allowances for
the past 26 years he has been in power cannot build such a house.

"But also that could show you that he is preparing for his retirement."

Apart from the costs of building the palace, many millions more have been
spent on decoration and furniture and landscaping its lake-strewn grounds.
Arab artists brought to Zimbabwe spent a year decorating the arching
ceilings.

For most Zimbabweans, Mugabe's relocation to the mansion is proof that
government profligacy starts with the presidency.

"It pains me. That house has no place in country were millions are starving
and jobless," Jonathan Nhekwe, who barely survives by selling cigarettes on
the streets of Harare, told IWPR.

His pain is shared by millions of other Zimbabweans who struggle to survive
each day in a country where inflation reached 1200 per cent in May and where
80 per cent of people of working age are unemployed. It is a slap in the
face for the more than one million people still living in the open after
their homes were destroyed a year ago in Mugabe's Operation Murambatsvina
(Operation Clean Out the Filth), an alleged urban renewal scheme which is
believed to have been aimed at supporters of the Mugabe opposition.

The palace, 26 kilometres north of central Harare in the plush suburb of
Borrowdale, has been built by Energo Projekt, a Serbian company with a long
history of construction in Zimbabwe and which also built ZANU PF's
skyscraper party headquarters in Harare. Glazed midnight blue tiles covering
the roof have been donated by China, a major investor in Zimbabwe following
the retreat of western businesses.

Mugabe has said the palace is a gift to him by ZANU PF out of gratitude for
leading the country to independence and then governing it since independence
in 1980.

In a rare interview with Britain's Sky News, Mugabe admitted there were
corrupt individuals in his party, but when asked if he himself was corrupt
replied, "Oh come on, come on, come on. We have had assistance, of course.
Some countries have donated. They have got some timber from Malaysia, thanks
to my good friend, former prime minister Mahathir [Mohamad]."

Set on several acres of land, independent newspapers and political
commentators estimate that the money used to build it would be enough to
construct four hospitals in a country where the health delivery system has
collapsed, or to build more than 2000 low-cost houses to begin to replace
the hundreds of thousands of homes of the poor destroyed in Operation
Murambatsvina.

Mugabe admitted in the Sky News interview that the palace project was
profligate, but he justified it by saying, "It is lavish because it's
attractive."

The area of Borrowdale where the palace is located has been declared a
security zone with a 24 hour guard provided by the state police and the
army, who, sources say, are under instructions to shoot to kill any
suspicious people approaching the complex.

This is the third luxury residence that Mugabe has built and the fifth he
has owned since he came to power.

In the early 1990s, Mugabe caused a public uproar after he used taxpayer's
funds to build a magnificent mansion at Kutama, the village 80 km northwest
of Harare where the president was born.

In the late 1990s, Mugabe's wife Grace, 40 years his junior, used government
funds meant to construct houses for the poor to build a 30-bedroom house
that came to be known as "Graceland" and which was later bought by Libyan
ruler Muammar Qaddafi.

The first family also has a 29-room farmhouse house 64 km northwest of the
capital on the magnificent Iron Mask Estate, allocated to them during the
wave of expulsions of white commercial farmers from their properties from
2001 onwards. The luxury farmhouse and its rich pastures were confiscated
from Eva and John Matthews, both in their seventies, who were given 48 hours
to leave after a visit by Grace Mugabe, accompanied by police, soldiers and
youth militiamen.

Mugabe also has a country retreat in Nyanga, a resort area in the Eastern
Highlands guarded all-year round by the army.

It is, however, the Borrowdale house that has most irked ordinary people and
attracted the fiercest criticism. Mugabe is not leaving his security to
chance. The government is giving notices to people with houses around the
palace to sell up and find homes elsewhere.

One couple living in the area told IWPR that they were served with eviction
letters in May this year. "They said it was a security zone and we had to
move," said the husband. The couple, who have lived in the area for the past
seven years, are however refusing to move and, with other residents, are
challenging the order in court.

Clearly Mugabe is not banking necessarily on a peaceful retirement in his
palace. One report says that, in addition to marble imported from Italy and
jacuzzis brought from South Africa, it includes concrete reinforced
underground rooms.

Dzikamai Chidyausku is the pseudonym of an IWPR journalist in Zimbabwe.


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Zimbabwe Reins in Runaway Currency

Institute for War and Peace Reporting

Banknotes have so many zeros that calculators and computers can no longer
cope.

By Benedict Unendoro in Harare (AR No.74, 15-Aug-06)

Zimbabweans are suffering more chaos and confusion as they try to spend or
deposit their savings before their cash becomes worthless in late August.

Central Bank Governor Gideon Gono announced at the beginning of the month
that three zeros are to be chopped off the country's banknotes, which have
spiraled to unreal levels by horrendous inflation that reached 1200 per cent
in May this year.

Individuals can deposit only 100 million Zimbabwe dollars (200 US dollars) a
day in bank accounts, in exchange for newly denominated notes, in an effort
to flush out money launderers and other alleged criminals.

Anyone carrying in excess of that amount is having the money confiscated
unless they can show good reason for having it - for example, a legitimate
transfer of company wages. Companies are limited to changing 5 billion
Zimbabwe dollars (10,000 US dollars) per day.

Police and much-feared youth militiamen are manning the borders and
roadblocks across the country to confiscate excess cash. The searches are
draconian, with regular reports of women being stripped by militia members.
Many trillions of Zimbabwe dollars in old notes are being confiscated.

With the country's banking system subject to red tape, corruption and
frequent closures as a result of bankruptcy, it is estimated that 90 per
cent of Zimbabweans choose to keep their banknotes at home.

Most people, especially the rural poor, simply do not have bank accounts.
The relatively well off with lots of old dollars feel compelled to spend
them before the new ones, minus the three zeros, become the legal currency.
The spending spree is fuelling inflation, which the Central Bank's reform
was, in part, supposed to curb. One Harare man splashed 100 billion old
Zimbabwe dollars in cash on ten luxury cars. Petrol prices in Bulawayo, the
country's second city, increased one hundred per cent in real terms in just
a week following Gono's announcement of his reform.

People scrambling to dispose of old notes are buying houses, cars and
fridges - anything that has concrete value. Small-scale farmers are being
inundated with astronomical bids for their cattle as hot money seeks
conversion into real assets.

Rates on the black market, which long ago supplanted official financial
channels as the public's chosen way of dealing, are now impossible to
determine because they move by the hour. The only thing certain is they are
not going down.

"The reason given for the removal of the three zeros includes the much sung,
but abused, word 'convenience'," wrote Webster Zambara, a columnist for the
weekly Zimbabwe Standard. "We are told that we no longer need to carry
wheelbarrow loads of cash to buy an item that fits in a pocket."

In fact, the currency was so inflated that people carried "bricks" of money
in boxes, satchels, suitcases and all manner of containers in order to carry
out transactions: a loaf of bread can cost more than one million Zimbabwean
dollars.

The re-denomination on August 21 is seen as purely a cosmetic cleanup of a
runaway currency, which gave birth to so many noughts that computers and
calculators could no longer cope.

Trevor Ncube, publisher of the Zimbabwe Independent and the Standard, said,
"It [the lopping off of the three zeros] is semantics. It is like
rearranging the chairs on the Titanic." Ncube said Gono had not addressed
fundamental issues and that inflation would again take off in a big way.

"What Gono has done is going to buy him a bit of time because one reason
he's done this is that banks are coming to him saying, 'We cannot cope with
the zeros anymore,'" said Ncube. "'The accounting packages we bought from
South Africa, from the UK, can't accommodate the zeros anymore. We need to
get rid of the zeros.'

Leading Harare economist John Robertson said, "The re-denomination is a
non-event. It doesn't address the underlying causes of the economic problems
here. In other parts of the world where re-denominations have worked, they
have been preceded by major policy overhauls."

A decade ago, the biggest real money denomination used to be the 1000
Zimbabwe dollar note, with which you felt extremely rich. But ravaging
inflation took off from 1997, and Zimbabwe became the country with the
world's fastest declining economy, rendering the note useless.

Cries to devalue the Zimbabwe dollar since 2003 have met great resistance
because, according to the thinking of political leaders, it would be a
signal to the world that the economy really has failed. But transactions
using the runaway currency became almost impossible as prices rose in tandem
with inflation. President Robert Mugabe's land reform programme, because of
its chaotic nature, destroyed the major pillars of the economy.

Commercial agriculture collapsed as experienced farmers were quickly
replaced by people, mainly members of the ruling ZANU PF party, who had no
experience of farming. The production of money-spinning crops such as
tobacco and flowers declined immediately and for the first time Zimbabwe
became a net importer of maize, the staple food of ordinary people. All the
other formal sectors of the economy, including financial services,
manufacturing and mining, began to collapse as well.

With the disintegration of the formal economy, the informal parallel market
strengthened, fuelled by the government's obstinacy in keeping the official
exchange rate at an artificially high level. As inflation climbed, the
government of an increasingly impoverished country pronounced its budgets in
trillion dollar terms. Computer accounting programmes had not been designed
with so many zeros in mind. Companies were increasingly unable to release
financial statements because computer printouts went haywire. The sheer
number of digits began to defeat the understanding of executives and board
members.

Something had to be done. Hence Gono's surprise announcement of the lopping
off of three zeros, giving citizens three weeks to exchange old currency for
new.

Eric Bloch, economic adviser to Gono, cited neighbouring Mozambique as an
example of how re-denomination can work. "Mozambique has demonstrated a
capacity to apply a practical, viable solution to a critical, economically
debilitating problem," he said.

Mozambique eliminated three zeros from its currency on July 1.

Mfandaidza Hove, an economics spokesman for the opposition Movement for
Democratic Change, chastised Bloch for his specious "mischief". He pointed
out that the Mozambican economy at the time of the lopping of its zeros was
ticking along healthily, unlike that of Zimbabwe whose gross domestic
product has contracted every single year since 1998.

Since 2000, said Hove, Mozambique's economy had maintained an average annual
growth of seven per cent and was expected to continue this expansion by
between seven and ten per cent for the next five years. Mozambique's growth,
he went on, had been "achieved through prudent macro-economic policies
against a backdrop of a stable political environment".

The Mozambican inflation rate had continued to fall and the currency to gain
against major currencies.

"It is against this background of a growing and well-managed economy with
low inflation that Mozambique took the decision to remove the zeros from its
currency. In contrast, the Zimbabwean economy has shrunk by 44 per cent
since 1998 and is expected to decline by as much as 6 per cent this year,"
concluded Hove.

Many analysts, in addition to Ncube, say Zimbabwe's zeros will soon be back
with a vengeance. They argue that, in the context of a dying economy like
Zimbabwe's, chopping off zeros is actually inflationary.

Phoebe Goremusandu, a senior markets analyst in Harare with Old Mutual Asset
Managers, said, "A [re-denominated] currency can create an illusion of lower
prices, hence a tendency to increase prices even higher. This would see
inflation increasing to levels beyond current expectations." She added that
it was important there be initiatives to address inflation at a much more
fundamental level.

"The truth is that month-on-month inflation has continued to rise at an
alarming rate," said another analyst, predicting that this would be the
trend for the foreseeable future.

The relief the new family of banknotes will bring relates only to the
portability of the money. People are taking old-fashioned purses and wallets
out of storage to put them to work again. But the message is that this will
be only a passing luxury. The cardboard boxes, sacks and suitcases should
not be thrown away.

Benedict Unendoro is the pseudonym of an IWPR journalist in Zimbabwe.


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Brain Drain Gathers Pace

Institute for War and Peace Reporting

Employers can do little to keep skilled personnel when salaries constantly
lag behind astronomic inflation rate.

By Josphat Gumbo in Harare (AR No.74, 15-Aug-06)

Amid Zimbabwe's deepening economic and political crisis, the country's
skills base is shrinking fast in the face of an exodus of hundreds of its
nationals who leave the country each week in search of better working
conditions.

Business analysts say the Great Trek to greener pastures is wrecking any
chance of future economic recovery.

The mass departure, mostly to the West and to South Africa and Botswana, has
rendered ineffective efforts by both the government and the private sector
to prop up the sick economy. Both have sunk billions of Zimbabwe dollars
into new skills training - but most who complete the course or re-training
quickly depart for a better life elsewhere.

"Some 70 to 90 per cent of Zimbabwean university graduates are working
outside the country," said Community Development and Women Affairs Minister
Eunice Chitambira at a recent conference on labour migration. She said the
heaviest losses were among teachers, doctors, nurses and pharmacists. Most
health professionals head for the United Kingdom.

According to the Southern African Migration Project, funded by Canadian and
British government aid, more than 50 per cent of skilled Zimbabweans
surveyed said they intend emigrating either indefinitely or permanently.

More than four million Zimbabweans, just under a third of the population,
have fled into exile since the country was plunged into deep economic and
political crisis from 2000 onwards. Some 80 per cent of those who've
remained are unemployed.

Figures obtained from the government's Central Statistical Office, CSO,
suggest that among the general exodus, some 2600 highly skilled people left
Zimbabwe between January and June this year. But employers and business
analysts dispute the official figures, saying they are not a true reflection
of the real situation. They note that hundreds of thousands of Zimbabweans
have streamed out of the country unofficially, especially into southern
Africa, while others have left on the pretext of going on holiday never to
return.

According to the CSO, 540,000 locals officially travelled abroad last year
compared to 375,000 in 2004, and analysts say a sizeable number of these
people never returned. Huge numbers of Zimbabweans fled the country
illegally, mainly to South Africa.

John Mufukare, the executive director of the Employers Confederation of
Zimbabwe, said the country's economic and political crisis was the major
force fuelling the brain drain. He said although it was difficult to
quantify the latter in terms of losses to the economy, the human resource
base is clearly shrinking at an alarming rate.

Mufukare said there is a high demand both regionally and internationally for
Zimbabwe's skilled workers. Employers could do little to keep skilled
personnel when salaries constantly lagged behind Zimbabwe's astronomic
inflation rate, which surged to a record 1195 per cent in May and is
predicted by the World Bank to hit the 2500 per cent mark next year. "The
figures of the departing Zimbabweans, particularly the unofficial figures
which are the real ones, are a barometer of the performance of the economy,"
said Mufukare.

The CSO figures show that in the first half of this year, 955 highly
qualified Zimbabweans emigrated to Botswana, 532 to the United Kingdom, 324
to South Africa and 114 to New Zealand. Immigration of skilled people was
minimal.

While the public health sector has been the hardest hit by the brain drain,
private businesses have also been badly affected. "Zimbabwe's human capital
is simply draining away," said one economist.

Emcoz's Mufukare said that until the government reined in runaway inflation
there is nothing it can do to stop the brain drain. Spiralling price rises
had somehow to be contained before any meaningful economic recovery plan
could be implemented.

An official at international courier service Federal Express, now handling
visa applications of all prospective travellers to Britain, said the company
had been inundated by thousands of applications. It is believed that more
than 3000 Zimbabweans who
entered Britain alone last year did not return to Zimbabwe, with most of
them claiming to be attending schools there.

Harare economist John Robertson said that, with the local currency in a
tailspin, working abroad had become highly attractive because exiled
Zimbabweans repatriated their hard cash to trade it on the thriving parallel
black market to support their families.

Rugare, not his real name, a 26-year-old nurse working in London, said he
uses an informal network of friends to send money home, "I rely on them
because I do not have proper documentation." He says he sends the equivalent
of a minimum of 142 US dollars each month.

Rugare says he obtains three times the official rate on the black market,
and there is no doubt that these remittances make the difference between
extreme hunger and having food on the table for relatives still in Zimbabwe.

Robertson said while ordinary Zimbabweans are enjoying the benefits of money
sent from abroad via the black market, the Central Bank, desperately in need
of foreign currency to plug holes in a ruined economy, is not.

Zimbabwe is in dire need of any source of foreign exchange since the
withdrawal of financial support by the International Monetary Fund, IMF, and
the World Bank a few years ago because of the political crisis and economic
mismanagement that have engulfed the country following a series of rigged
elections since 2000.

Desperate to tap funds held by some four or five million of its citizens in
the diaspora, the Central Bank two years ago launched the Homelink money
transfer system, offering favourable interest rates to exiles to remit money
home through official channels.

But interest in the scheme has been lukewarm because the "preferential" rate
remains far below what can be obtained on the black market, which has almost
become the official dealing medium. When Gideon Gono, the Reserve Bank
governor, visited South Africa to explain to Zimbabwean exiles the Homelink
system he was shouted down at meeting after meeting. One exile, Joshua
Rusere, said, "To add salt to injury, Mugabe sends his messenger to ask me
to send my money to bankroll his regime when its policies drove me into
exile."

Zimbabwe has been in political turmoil since February 2000 when the people
voted in a referendum against a government-sponsored constitution that would
have widened and entrenched the powers of President Robert Mugabe. The head
of state reacted by sanctioning violent invasions by his supporters of
commercial farms, mostly white-owned. Mugabe's decree, dressed up as land
reform, triggered a collapse of the economy as agriculture, the main source
of foreign exchange earnings, went into a precipitous decline. There has
been a mass exodus of white Zimbabweans, who once numbered nearly 300,000.
According to the last census in 2002, there were just 46,743 remaining
whites: 10,000 of these were aged 65 or more, and fewer than 9000 were under
15.

Mass deaths from AIDS and the exodus of both blacks and whites prompted
Didymus Mutasa, a senior minister and head of the government's much-feared
Central Intelligence Organisation, to say, "We would be better off with only
six million people, with our own [ruling party] people who supported the
liberation struggle. We don't want all these extra people."

Josphat Gumbo is the pseudonym of an IWPR journalist in Zimbabwe.


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Zimbabwean Civic Activists Lobby Southern African Summit in Lesotho

VOA

By Patience Rusere
      Washington
      15 August 2006

Civic activists from the Southern African region were preparing to protest
in Maseru, Lesotho, over Zimbabwe's record on human rights, among other
issues, as the heads of state of the Southern African Development Community
gathered for a summit.

More than a dozen nongovernmental organizations were represented in Maseru.

Spokespersons for the dozen or so NGO groups in Maseru said they would
present a communique to the summit, which they hoped would be taken up on
Thursday.

Zimbabwean civic groups were set to meet with former president Benjamin
Mkapa of Tanzania, named by President Robert Mugabe to mediate between
Zimbabwe and Britain, to focus instead on mediating an internal resolution
of the national crisis.

SADC heads of state were expected to give their endorsement to Mkapa's
nomination as Zimbabwean mediator - though it is unclear what direction his
mission will take now that British offiicals have made clear they are not
interested in the proposed talks reviewing historical disagreements over
Zimbabwe's land reform program.

For the NGO perspective, reporter Patience Rusere of VOA's Studio 7 for
Zimbabwe spoke with Crisis Coalition in Zimbabwe Coordinator Jacob Mafume,
in Maseru.


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Funeral parlours under probe

The Herald

Herald Reporter

SOME hospital mortuary stewards, working in cahoots with private funeral
parlours, could have swindled the City of Harare of millions of (revalued)
dollars through under-declaring the number of bodies and time spent in the
council's mortuaries.

The city's internal audit department has launched investigations into the
operations of private funeral parlours following reports that Vineyard
Funeral Services kept bodies in a backyard room at a city building or in
cars overnight.

Workers at one funeral parlour last week said one council mortuary steward
was getting kickbacks from their employer each month for tampering with
documents and under-declaring the number of bodies.

The suspicious underhand dealings involving bodies brought to the city's
mortuaries by private undertakers could see some private parlours denied
operating licences.

In an interview last week, the city health acting director, Dr Prosper
Chonzi, said investigations into operations of council mortuaries and
private funeral undertakers had been opened.

"It is true that our internal audit division is investigating the operations
of our mortuaries for possible connivance between our employees and the
private funeral undertakers," Dr Chonzi said.

He said one of the council's mortuary stewards was last week picked up by
the police.

"We are still waiting for a full report on the reasons behind the three days
he has been away from work assisting the police with their investigations,"
Dr Chonzi said.

He said investigations into the licensing of private parlours and the
possibility of underhand deals in the admittance and release of bodies is
also ongoing.

Investigations carried out last week showed that there was a possibility
that normal procedures might not have been followed when parlours brought in
bodies owing to poor security mechanisms at both Beatrice Road Infectious
Diseases Hospitals and Wilkins Hospital mortuaries.

At Wilkins there are no municipal security officers stationed at the
mortuary section, a few metres away from the main hospital.

Lack of surveillance has made Wilkins Hospital mortuary a target of some
parlours wishing to cut costs and hoodwink the council.

Dr Chonzi confirmed the non-existence of tight security, particularly at
Wilkins, and said this was a cause for concern.

Council was working towards tightening the security.

Dr Chonzi said he was still waiting for a preliminary report on Vineyard
Funeral Services from city health officials who inspected the premises.

"We are also interested in knowing if the parlour was involved in any
illegal activities."

Vineyard has denied the allegations that it kept bodies in a room not
designated for that purpose and in vehicles overnight, but investigations
show that Vineyard would collect some bodies at night and book them at
Wilkins the following morning.

For example, the funeral parlour collected the body of a pregnant woman at
8pm on June 1 in Borrowdale and only booked it into Wilkins Hospital
mortuary the following morning at 8am.

The mother of Oppa Nkomo, who died last November, said the body of her
daughter was collected by Vineyard at 8pm but records at Wilkins showed that
the body was admitted the next morning.

The body of Mbakurerwa Rodger was collected at 1am on July 18 this year and
was only registered to have been admitted at Wilkins at 8:20am.

Rose Dube, whose body was collected at around 2am on April 18 this year, was
taken to Wilkins at 9.20am.

Wilkins Hospital mortuary has a holding capacity of 24 bodies and does not
operate beyond 5pm while Beatrice Road Infectious Diseases Hospital, which
operates for 24 hours, has a holding capacity of 18 bodies and gives first
priority to patients who die from their hospital.


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Shops reject old bearer cheques

The Herald

Business Reporter

WITH six days to go before the old bearer cheques cease to be legal tender,
some businesses are refusing to accept them, claiming they no longer comply
with their newly configured systems.

The businesses further claim that they want a smooth transition from the old
currency in line with Reserve Bank Zimbabwe (RBZ) Governor Dr Gideon Gono's
2006 Mid-Term Monetary Policy Review Statement.

In interviews with Herald Business, some supermarket, bottle store and
service stations managers complained that they had been encountering
problems with the old currency over the past two weeks and had resolved to
accept the new currency only.

Motorists queueing for fuel at Bobby Service Station in Chitungwiza were
left stranded after being turned away simply because they did not have the
new currency.

"Our systems have been upgraded to suit the new currency and we are no
longer accepting the old bearer cheques. We are no longer accepting the two
currencies," said an attendant at the service station.

"We were given this directive last Friday and we notified all our customers
in time to avoid inconveniencing them," he added.

One of those turned away was Mr Bezel Nyamakari, a transport operator, who
said the unilateral decision was negatively affecting his business.

"This is illegal and the relevant authorities should chip in to help us. We
have been here since morning and only those in possession of new cheques are
being served.

"Dr Gono made it clear that the old bearer cheques cease to be legal tender
on the 21st of this month, yet some operators are already refusing the old
bearer cheques.

Some supermarket and bottle store operators interviewed said they are
refusing to accept the old cheques after encountering problems when
depositing the old cheques.

"We have had a lot of problems in depositing old bearer cheques and to avoid
such problems, we have decided not to accept the old cheques.

"I don't think it's illegal, the customers have to change their old bearer
cheques at the bank and bring the new currency to make life easier for us,"
said a bar attendant at Zvido Nightclub in Unit O, Chitungwiza.

However, while some businesses are refusing to have anything to do with the
old currency, others have put a ceiling of $20 million on payments in the
old bearer cheques. Customers must fork out the balance in the new currency
for any purchases above that.

This comes at a time when most banks are still giving out the old bearer
cheques, making the new bearer cheques a scarce commodity.


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Zimbabwe pledges to modernize defense forces

Xinhua

      www.chinaview.cn 2006-08-16 07:46:52

          HARARE, Aug. 15 (Xinhua) -- Zimbabwean President Robert Mugabe
said Tuesday the government remains committed to supplying the defense
forces with modern military equipment in order to sustain their military
capability for defense purposes.

          By blending the new techniques with their own, they can develop a
robust hybrid defense system that will enable them to achieve higher levels
of military excellence, Mugabe said when officiating at the Zimbabwe Defense
Forces Day at Rufaro stadium.

          Mugabe said the experience of the defense forces and understanding
of varied military systems also enhances their performance in international
peace-keeping missions where they work with soldiers of different
orientation and doctrine from other countries.

          He said in an effort to limit reliance on the foreign market where
some western suppliers have adopted the British led illegal sanctions
against the country, the Defense Forces embarked on a program to substitute
some of the foreign sourced spare parts with locally manufactured ones.

          He said that the government will continue to review the conditions
of services of the defense forces by constantly reviewing their salaries and
allowances to cushion them against the ever rising cost of living, hence
their last review in May. Enditem


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Zimbabwe needs a new breed of heroes and sheroes

New Zimbabwe

      By Daniel Fortune Molokele
      Last updated: 08/16/2006 08:53:32
      THIS past weekend I was privileged to be a part of a lively Heroes Day
social braai held for Zimbabweans at Braamfontein in Johannesburg.

      The public event was organized under the auspices of the Zimbabwe
Diaspora CSOs Forum. The Forum is a loose network of at least 25 different
Zimbabwean formations that are operative in South Africa.

      The event was also part of the Forum's monthly public meetings that
the Forum will be hosting in the run-up towards the proposed Zimbabwe
Diaspora Global Conference. The historic gathering is due to be held
sometime in mid-2007.

      At the braai event I managed to meet and relate with some of the key
figures in the pro-democracy community of activists here in South Africa.
Indeed there was a good turnout of some of the most recognizable faces among
the locally based Zimbabwean activists.

      The afternoon started with a video screening of the latest documentary
to be produced by the Reverend Doctor Martine Stemerick. She is from the
United Kingdom and works as an ordained priest of the Methodist Church in
London. However, over the years, she has increasingly become known as one of
the leading campaigners for a new democratic Zimbabwe.

      The almost half an hour long documentary also features one of the most
outspoken critics of the Zimbabwean regime, the award winning head of the
Roman Catholic church in Bulawayo. His Grace, Archbishop Pius Ncube plays
the integral role of being the main narrator of the production. It is simply
entitled, Everything Must Change! The title is derived from the
controversial hard hitting song by one of Africa's global music icons, Hugh
Masekela of South Africa.

      The documentary is a definite must see for all the friends of a new
Zimbabwe. It was well received by the Braamfontein audience. As the Forum,
we also pledged to help publicise it by undertaking to screen it whenever
there is any public gathering of Zimbabwean activists based here in South
Africa.

      After the documentary, the focus was shifted to a series of solidarity
messages from some of the leading activists who attended the event. The
resonating tone in most of the speeches was that while it was good to
celebrate our past heroes such as Joshua Nkomo, Josiah Tongogara, Herbert
Chitepo, among others, the time has come for Zimbabwe to raise a new breed
of heroes and sheroes. These will take Zimbabwe to the next level of
national development and democratization.

      Among those who spoke were Granny Joyce Dube (SAWIMA), Solomon
Chikohwero (ZVTSP), Luke Dzipange Zunga and Jay-Jay Sibanda (Concerned
Zimbabweans Abroad), Steven Paradza (ZIPOVA), Philani Khumalo (ZHRLG), among
others.

      There were also some speeches from some Crisis in Zimbabwe (SA) office
representatives such as Reverend Nicholas Mkaronda (Co-ordinator) and
Sifisosami Dube. Nkosinathi Tshuma, one of the officers was also in
attendance. The Forum is determined to forge a mutual working programme
partnership with the Crisis in Zimbabwe Coalition in the quest for a new
democratic Zimbabwe.

      I was also pleased to see that among other speakers were former
student leaders like Gabriel 'Marechera' Shumba (Zimbabwe Exiles Forum),
Nixon 'Mao the Comrade' Nyikadzino) and the dynamic Givemore Chari (Bindura
University SRC). Also in attendance were such comrades who have also made
their mark in the Zimbabwean student movement like John Briggs Bomba (NUST
SRC), Danford Damba (UZSRC) and Sibanengi Dube (Harare Polytechnic SRC)

      After the inspirational round of speeches, focus then turned to some
dramatic presentations from some of the locally based Zimbabwean artistes.
These included among others, Kenneth Tafira (poet), the Spice Girls (dance
trio) and the mother-daughter combination of Nora Tapiwa and Kundai.

      Thereafter the event's participants were treated to some sumptuous
braai packs consisting of beef, chicken and boerwors sausages. There was
also a choice between rice and sadza/isitshwala, our traditional staple
food. There is no doubt that everyone enjoyed their meal.

      On my part, I also enjoyed taking some photos and video shoots of the
event whilst doubling up as the MC of the event. Anyway, I hope I did a good
job of it even though I know that I have never been good at multi-tasking.

      At the end of the day, I also had the honour of giving the vote of
thanks to all those who made the braai event such a huge success. In my
brief remarks, I took the chance to pledge the Forum's commitment to work in
partnership with both the Crisis in Zimbabwe Coalition (SA) office and the
Zimbabwe Solidarity Forum which is a loose network of all the South African
organizations that are concerned about the worsening situation of things
back in Zimbabwe.

      In particular, it is our hope that we will work together with these
formations in order to organize a very successful global Zimbabwe Diaspora
conference here in Johannesburg in 2007.

      Daniel Molokele is a Zimbabwean Human Rights Lawyer who is based in
Johannesburg. He can be contacted at zimvirtualnation@yahoo.com


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Mugabe the African Castro

Zimbabwejournalists.com

      By Alois Phiri Mbawara

      LONDON - I have always admired and respected our Chimurenga history
starting from the First Chimurenga how our Ancestors Ambuya Nehanda and
Sekuru Kaguvi played a massive role in protecting our Sovereignity and their
resistance against minority rule.

      These political figures, Nehanda and Kaguvi, will always be
remembered, respected and will be a silver-spoon which will be passed on
from one generation to the other - they are icons. So as the Second
Chimurenga to a certain extent.

      I strongly agree with a recent letter that said the liberator had
turned monster. We all had respect for our liberators after independence
till they started to take Zimbabwe as their personal property.

      Mugabe has managed to mislead the region, the African Union and others
that the economic and political meltdown in Zimbabwe was due to economic
sanctions imposed by the European Union due to his controversial land
reforms. Mugabe used the land reform as a political gimmick not only as a
way of propaganda to gain support from the Zimbabwean electorate but to
spread controversy among Africans.

      It is 100% true the land question has always been a driving force for
independence for us as Africans. But the way it was done in Zimbabwe was
with no logic and unconstitutional. Mugabe failed to address the Land issue
according to the Lancaster House Agreement. He tolerated corruption,
Kumbirai Kangai being the first minister to be accused of graft, within the
government leading to the drastic meltdown of the economy. As a result many
have lost their trust in Mugabe's government. I strongly believe the
Zimbabwean solution lies in the southern African region.

      It is our civic right and responsibility to strive hard and expose to
our African counterparts that the Zimbabwean situation is due to one's
misrule not a racial issue. We need to expose to our African brothers that
the economic meltdown in our motherland is due to one who has jeopardised
the agricultural system which was the backbone of the economy, one who has
with no logic taken farms from commercial farmers (from a economy which is
based on Agriculture) giving them to subsistence farmers. Differences
between the two farming systems - commercial farmer produce for commercial
bases and subsistence farmer does for his own consumption. We need to expose
to our African brothers how it is impossible to campaign or win any election
with the present Constitution. We need constitutional reforms.

      Why some African countries are not criticising Mugabe it's because
Mugabe's propaganda tactics have worked in selling the Zimbabwean situation
as a bilateral dispute between Harare and London taking Africans back to the
start of Pan Africanism hence the land reform in Namibia, South Africa
giving Mugabe the Fidel Castro image. Castro has a long bilateral dispute
with the West, mainly America, for his undemocratic style towards his
people.

      Even though I don't fully support America's influence towards Havana,
its pledge of US$80m to fund anti-Castro organisations in Cuba to spearhead
the end of the Communist rule is wrong, it is very crucial for Cubans
themselves to be on the centre stage of pushing for a democratic transition
not a direct involvement of the Bush Administration this will give Castro
support from his other communist allies China,Venezuela, Russia, Korea,
Mugabe and libya (but now reforming). No wonder why he is celebrated as a
hero throughout Latin America.

      In conclusion we Zimbabweans need to work with our African
counterparts for them to acknowledge the Zimbabwean crisis. I think its high
time we respect and follow the fundamental principles and rules of art of
war, our attack formation has to change lets study and learn our opponents
so as to win them, I think I have mentioned it before but now I mean it,
Mugabe has succeeded regionally in using the colonial card to dismiss any EU
interference and the more pressure given to Mugabe the more he gets regional
support, that is why Kofi Annan is failing to openly criticize Mugabe
because of Annan's Ghanian roots, the birth place of Pan-Africanism.

      But it is a shame the original ideology of Pan-Africanism by Kwame
Krumah was to serve the will the people but now it has been catastrophed by
self interest it is now used to serve the will of African leaders. It's high
time we put pressure on our African brothers not to turn a blind eye on the
escalating situation in Zimbabwe and to criticize them to save and
sympathize with Zimbabweans not Mugabe. We Zimbabweans we should be in a
position to dismiss and react to Sam Nujoma's notion. He recently threw a
baseless defence of Zimbabweans from British invasion and educate them. What
Zimbabweans need liberation from is the Mugabe regime. Let's all try and
stop this African Fidel Castro before it spreads in the region. Zimbabwe
should be an example for Africa of emancipation from so-called liberators.

      It is important for us young Africans to realise and recognise the
fall of prideness and oneless as Africans and push for a reform of African
Union for the sack of our future and our unborn children. And as we always
say our criticism is liberty, why because the Mugabe regime has never done
anything for us the youth with our whole nation being denied their civic
rights.

      Alois Phiri Mbawara is one of founding members of Free-Zim Youth, a
youth organisation based in the UK.

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