http://www.iol.co.za/
August 28 2009 at
01:22AM
Johannesburg - The Zimbabwean political leadership
is ready to tackle
political and social challenges head-on, President Jacob
Zuma said at a gala
dinner in Harare on Thursday.
The dinner
was hosted by Zimbabwean President Robert Mugabe and among
the guests was
Prime Minister Morgan Tsvangirai.
"We bring fraternal greetings
from the people of South Africa who have
closely followed with keen interest
the positive developments that have
taken place in this great country in
recent times," Zuma said.
"These are positive developments that
foretell good things that will
come to the Zimbabwean nation," he
said.
Zuma noted that the country's achievements signalled to
locals and the
world that Zimbabwe's political leadership was ready to
"collectively tackle
the political and the socio-economic challenges
head-on".
"We are all encouraged by how the three parties put
their differences
aside in the service of this country.
"It is
indeed very encouraging to note the significant progress that
has been made
under the auspices of the Inclusive Government."
Zuma said the SADC
remained at its disposal for assistance.
"The remaining issues are
not insurmountable, and can be overcome.
"The most difficult path
has already been travelled... The bonds that
united us when we battled the
inhuman systems of apartheid and colonialism
still guide us today as we
endeavour to build a better life for all our
people." - Sapa
August 27, 2009
President Mugabe introduces President Zuma to security chiefs
on arrival in Harare
By Raymond Maingire
HARARE – South African President Jacob Zuma flew into Zimbabwe Thursday evening amid high expectations he would use his influence as current SADC chair to unlock a political deadlock that continues to haunt Zimbabwe’s six month old unity government.
Zuma touched down at the Harare International Airport after 6 pm to be received by scores of Zanu-PF supporters who carried his posters and those of President Robert Mugabe while singing in praise of him.
Mugabe and Prime Minister Morgan Tsvangirai, together with a handful of cabinet ministers from their parties, were on hand to receive Zuma.
Deputy Prime Minister Arthur Mutambara, the third signatory to the September 15, 2008 Global Political Agreement, was not at the airport.
Among the ministers and top officials who met Zuma were Nelson Chamisa, Elias Mudzuri, Elton Mangoma, Sekai Holland, Heneri Dzinotyiwei, Henry Madzorera, Evelyn Masaiti and Theresa Makone, all from Tsvangirai’s mainstream Movement for Democratic Change (MDC).
Nicholas Goche, Simbarashe Mumbengegwi, Emmerson Mnangagwa, Sydney Sekeramayi, Webster Shamu and David Karimanzira were some of the Zanu-PF politicians who met Zuma.
This is Zuma’s first official visit to Zimbabwe in an official capacity. He was in April this year elected to become the third post-apartheid South Africa’s President.
Because of the darkness, Zuma was discouraged from inspecting a guard of honour by Mugabe.
The South African leader, who did not address journalists, was whisked away to State House where he was due to hold talks with President Mugabe.
James Maridadi, Tsvangirai’s spokesperson said the South African President would hold talks with the MDC leader at the Rainbow Towers later in the evening.
Zuma is set to officially open the Harare Agricultural Show Friday afternoon.
But it is in the context of how far the SADC chairperson will go in unlocking the deadlock among Zimbabwe’s former rivals that most observers are watching Zuma’s visit.
Unlike his predecessor, Thabo Mbeki, who brokered the fragile unity agreement, Zuma is seen as a firm leader who will not allow his personal respect for Zimbabwe’s long-serving leader to impair his judgement.
Gwede Mantashe, the secretary general of South Africa’s ruling African National Congress and one of Zuma’s closest allies, cited on Wednesday the continued harassment and arrest of parliamentarians from the MDC as an example of “deviant” behaviour which he suggested Zuma would be vocal in condemning.
“In our view all these issues are a hindrance to progress and that’s why we will always be vocal. A neighbour, whether you like it or not, is a friend because you do not have a choice.”
“The only difference will be that President Zuma will be more vocal in terms of what we see as deviant behaviour by our neighbours. That’s why President Zuma is heading to Zimbabwe, to engage them,” he said.
The MDC is keen to see the full implementation of the GPA which it says is preventing the new inclusive government from delivering on its promises of restoring economic prosperity to Zimbabwe, once one of Africa’s most progressive economies.
Key among the outstanding issues is the continued refusal by Mugabe to reverse the unilateral appointment last year of Reserve Bank of Zimbabwe governor Gideon Gono and Attorney General Johannes Tomana, who were appointed by the Zimbabwean leader.
The GPA says the principals should first consult before appointing persons to executive posts.
The MDC also wants Mugabe to swear into office, its governors set to replace Zanu-PF loyalists who were unilaterally sworn in by President Mugabe outside the dictates of the GPA late last year.
Continued invasions on white owned farms by Mugabe’s powerful allies, military chiefs and Zanu-PF supporters is one of the issues that have heightened tensions in the six month old unity government.
Zanu-PF upped the stakes two weeks ago when it declared it was not going to make further concessions in the GPA because the MDC was failing to effectively denounce Western imposed targeted sanctions which it says continue to hurt ordinary Zimbabweans and affected individuals.
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009 23:07
SOUTH
African President Jacob Zuma arrived in Harare last night for
make-or-break
talks with President Robert Mugabe, Prime Minister Morgan
Tsvangirai and
Deputy Prime Minister Arthur Mutambara in a bid to settle
intensifying
struggles among leaders of the inclusive government.
The
critical talks will determine whether the coalition government is
able to
put the divisive issues crippling its operations behind it and focus
on
rebuilding the country. The alternative is an ugly battle ahead of the
forthcoming Sadc summit in the DRC.
Battle lines were
already drawn before Zuma arrived in Harare - his
first visit to Zimbabwe
since he was sworn-in in May - as officials traded
tough remarks in a bid to
do agenda-setting. Hard-hitting statements came
from key allies of Mugabe
and Tsvangirai who appeared geared for a
take-no-prisoners encounter, while
ANC secretary-general Gwede Mantashe has
said South Africa will be more
vocal in its attempt to curb what he called
"deviant behaviour" in the
Mugabe camp.
Zuma was expected to meet Mugabe, Tsvangirai and
Mutambara last night
after a state dinner. Zuma is also expected to meet the
three leaders
collectively today after officially opening the Harare
Agricultural Show
although the official agenda of the visit does not
indicate exactly when the
talks will take place.
Tsvangirai told
journalists during his tour of the Show that he was
optimistic Zuma would
crack the disputes within the Global Political
Agreement
(GPA).
"The meeting will take place as the South African
government has
indicated," said Tsvangirai.
"There is an
opportunity for President Zuma to meet the principals of
various political
parties and try to evaluate the implementation of the GPA.
Tomorrow we will
meet (with him) as principals," Tsvangirai said.
"President
Zuma is not coming here as a prosecutor or a judge but as
chairman of Sadc
and guarantor (of the GPA). All he wants to see is the
agreement being
implemented and on that score I am optimistic."
However, indications
were that the meetings would be heated as the
disputes have been steadily
escalating.
The talks will show whether Zuma has the political
leverage to clear
the stubborn outstanding issues and turn around the
fortunes of a country
ruined by a decade of misrule.
Zuma
recently met Tsvangirai in Johannesburg to discuss continuing
problems about
the political arrangements in Harare.
"The fact of the matter
is the prime minister had come here to raise
certain issues," Zuma told
reporters in Cape Town before his departure.
"Certainly I will also have to
raise those issues with the leaders in
Zimbabwe."
After
meeting Tsvangirai in Johannesburg, Zuma promised to contact
regional
leaders, including Mugabe, on the issues in dispute.
In his
capacity as Sadc chair, Zuma will hold meetings to sort out a
series of
issues which could explode into a crisis in the DRC if left
simmering.
The issues include the dispute over the sharing
and swearing-in of
provincial governors, the appointment of Reserve Bank
governor Gideon Gono
and Attorney-General Johannes Tomana, the swearing in
of Deputy Minister of
Agriculture Roy Bennett and the arrests of MDC-T
MPs.
There is also a dispute over the constitutional reform
process and
appointment of members of constitutional commissions, especially
the media
one. The quarrel over the mandate of the ministries of Information
Communication Technology and Transport is another matter.
Then there is the review of the six months of the inclusive government
which
might open the floodgates to complaints.
While a few issues
such as the appointment of permanent secretaries,
diplomats and the meeting
of the National Security Council have been dealt
with, the remaining matters
have a potential of driving a new wedge between
the parties in government,
creating a fresh crisis.
Zuma will also have to push to break
the deadlock on the issue of
constitutional reform which has run into an
impasse over the process and
leadership. This is a critical issue because if
the process stalls, or worse
still collapses, there could be no elections
perhaps until 2013. It had been
hoped they would come soon after a new
constitution had been produced.
Mantashe said two days ago his
boss would be out to curb Mugabe's
"deviant behaviour" and work together
with his power-sharing government.
If Zuma tackles Mugabe
firmly, his approach would be a departure from
his predecessor Thabo Mbeki's
"quiet diplomacy" which was denounced as weak
and
ineffective.
Mantashe was widely quoted as saying Zuma would be
tougher than Mbeki
in his stance.
"President Zuma will be more
vocal in terms of what we see as deviant
behaviour," Mantashe said. "We will
be more vocal but we will still engage."
MDC-T
secretary-general Tendai Biti said his party would raise a
number of "GPA
and toxic issues" which needed to be dealt with urgently.
"We
will raise GPA issues such the Gono and Tomana matter, the
governors, the
Bennett issue, selective application of the law, slow
progress and lack of
progress on reforms, especially on things like the
media and absence of
compliance with the rule of law," Biti said.
"We will also deal
with the constitution-making process. Our view is
that the people must write
their own constitution and all draft
constitutions must be considered. The
problem we have now is the impasse on
the constitution-making process and
lack of leadership. There is a
kwashiorkor of leadership on that
issue."
Biti said the review of the six months of the inclusive
government
would have to touch on the "skewed ministerial allocation" and
the issue of
disputed mandates of ministries.
Biti said on
the issue of sanctions, the GPA did not place the
responsibility of getting
the "restrictive measures" lifted on the shoulders
of one party. He said the
lifting of sanctions was linked with the
implementation of the
GPA.
Zanu PF has said it would raise the issue of sanctions and
foreign
radio stations broadcasting into Zimbabwe as the "outstanding
issues".
Justice Minister Patrick Chinamasa, Zanu PF's key
negotiator,
yesterday said the MDC concerns were a distraction, saying
Western sanctions
were the real issue as they were undermining the inclusive
government.
"Our position is very clear. We hope our principal,
President Robert
Mugabe, tells President Zuma that the outstanding issues
are that of
sanctions and external interference," Chinamasa told
AFP.
"The so-called outstanding issues, which are the issues of
the
(Reserve Bank) governor and the Attorney-General are nowhere in the
GPA," he
said. "This is meant to distract attention of the inclusive
government."
Zanu PF secretary for administration Didymus
Mutasa also said the Gono
and Tomana issues were "not for negotiation". He
said Mugabe has in terms of
the constitution "power to appoint the governor
of the Reserve Bank and the
Attorney-General" without consulting Tsvangirai
and Mutambara.
"The MDC must grow up. What they are saying is
absolute nonsense. They
are behaving like small babies," Mutasa said. "There
will be no negotiations
on those appointments."
Dumisani Muleya
and Faith Zaba
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
23:03
THE man at the centre of sensational sodomy allegations against
National Healing minister and Zanu PF chairman John Nkomo, the favourite
candidate to become co-vice-president, Mncedisi Twala, has spoken out on the
saga which has sent shockwaves through the political
landscape.
The sodomy allegations, which the Zimbabwe Independent
has been
closely following since last week after Twala made an alarming
police report
against Nkomo, has echoes of the Banana saga which rocked the
country in the
late 1990s.
Former president Canaan
Banana was convicted and jailed for sodomy
against the late Jefta Dube,
sinking his illustrious political career.
President Robert Mugabe,
who has described homosexuals as "worse than
pigs and dogs", did not attend
Banana's funeral. Banana was not buried at
Heroes Acre, where most
liberation-struggle nationalist leaders are
interred, after the Zanu PF
politburo refused to declare him a national
hero.
The Nkomo
saga deepened yesterday when police intensified their
investigations by
visiting the complainant's home to interrogate him. Police
yesterday
reportedly also seized Twala's uncle, Bekezela Khumalo, whom they
had been
hunting down the whole week.
Twala's mother, Lister Ncube, in
an interview said she was worried
about the safety of her
son.
Nkomo, who has denied the allegations, has reportedly
engaged
attorneys Chris John Dube of Dube, Banda & Nzarayapenga, while
Twala's
lawyer is Mkhululi Nyathi of Mabhikwa, Hikwa &
Nyathi.
Twala (30) narrated his alleged rape to the Independent
on Wednesday
and yesterday saying he was traumatised and now feared for his
life after
being arrested and harassed by the police.
He
said he was now living in fear because he had been harassed and
treated like
a criminal when he was a "victim" of rape.
Twala, who lives
with his mother in Lobengula West in Bulawayo, said
instead of
investigating his report, police in fact initially tried
to
charge him with armed robbery before dropping the claims which
could not
stick. He said police were now trying to charge him with making a
false
report, but he was standing by his sodomy allegations.
Twala,
who is a photographer, said what was now happening has proved
his worst
fears because his initial report to police after the alleged
sexual assault
in April 2002 was not recorded by the law enforcement agents.
After failing
to get police protection and an investigation into the matter
in 2002, Twala
said he escaped to South Africa.
He said he only permanently
returned home on July 4, although in
between he occasionally visited his
mother when she fell ill.
Twala said minutes after his release
on Wednesday that although he was
temporarily free, he now feared for his
life but was "prepared to tackle
anyone head on if push comes to
shove".
"I now fear for my life as I was constantly told that I
could
disappear or even be killed because I'm accusing a senior Zanu PF
official,"
Twala said.
Twala said he was psychologically
affected by his "unlawful detention"
by police since last week. He was
released on Wednesday by a Bulawayo area
prosecutor, Simon Nleya, without
charge. He was threatened with a counter
charge of armed
robbery.
"When I was in police detention on Friday night, some
anonymous people
came to my cell accusing me of making a false report on a
senior Zanu PF
person and asking me if I knew I could disappear for it. At
that point I did
not fear anything because I was already in detention but
now after my
release, I'm scared for my life," said Twala.
Nkomo has denied the allegations.
Asked whether his claims are
not politically motivated, Twala laughed,
saying he had nothing to benefit
from meddling in party politics because he
was not a member of any political
party.
"I can tell you 100% this is not political. All that I
want is
justice. Why are the police now hesitant to bring me to court to
prove that
I did not make a false report as they want to claim? If they
think I'm
lying, let them take me to court and I will prove I'm not lying,"
he said.
Twala said the alleged rape happened in April 2002
after meeting Nkomo
as Bulawayo's Centenary Park where he used to spend time
taking photographs.
He said the alleged rape took place at a hotel after
Nkomo had invited him
there. Twala said he has had serious difficulties in
reporting the case to
the police.
After the failed previous
attempts, Twala finally made a report at
Rose Camp police station in
Bulawayo last Thursday.
However, he was arrested on Friday at his
home and was detained at
Luveve police station. He was moved to Western
Commonage police station in
Mpopoma on Saturday afternoon.
He
remained there until his release on Wednesday. Jefta Dube and other
victims
of sodomy had repeatedly reported the case to top government
officials, but
were rebuffed until the police murder case in the courts led
to the
investigation of the allegations.
Twala said he felt harassed
by the police after making his report last
week. Barely 24 hours after his
release on Wednesday, police yesterday
morning went to Twala's house in
Lobengula West to ask him further questions
relating to when he had applied
for a passport and whether he could
positively identify the police officer
to whom he first attempted to file
the sodomy report in
2002.
Twala said he initially made the report at Bulawayo
central police
station when Nkomo was Minister of Home Affairs before
leaving the country
and returning to pursue the matter.
Nqobile
Bhebhe
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
22:56
MDC spokesperson Nelson Chamisa has been sucked into Deputy Youth
Minister Thamsanqa Mahlangu's case of allegations of stealing a cellphone
belonging to war veterans leader Joseph Chinotimba.
Chamisa,
who is Information Communication Technology minister, was
roped into the
case during Chinotimba's testimony on Wednesday before Harare
Magistrate
Kudakwashe Jarabini.
Chinotimba had the court in stitches
as he narrated how his cellphone
was stolen and how he allegedly told
Chamisa several times that he suspected
Mahlangu had stolen it, pleading
with him to get it back.
Mahlangu - the MDC-T national youth
chairman - is jointly charged with
his personal assistant Malvern Chadamoyo
and two Hwange women, Geraldine
Phiri and Patience Nyoni, for allegedly
stealing Chinotimba's phone.
All of them deny the
charges.
Chinotimba said his Nokia 2310 phone valued at US$40
was stolen on
July 17 when he attended Deputy Prime Minister Arthur
Mutambara's National
Vision 2040 conference at the Harare International
Conference Centre (HICC).
He alleged that once his phone was
stolen he reported the matter to
one of the hotel managers and to
Chamisa.
He said: "There is nothing else that I thought of but
to think that
the MDC boys that I had sat with stole my phone. I was lucky
that Minister
Chamisa came to sit close to me when I got into the conference
room and that's
when I got the opportunity to tell him the whole story that
his people had
stolen my phone.
"Chamisa said he would tell
Mutambara since he was the one hosting the
main function to announce to the
people who had gathered there. Mutambara
was told around 5pm and said he was
going to announce (the loss) to the
people."
Chinotimba
further claimed that he called Chamisa the following day
following up on his
cellphone matter.
"On Saturday evening I called Chamisa and
asked him 'Munodirei kuita
mweya yakaipa? Please bring back my phone. It was
your people who stole it'.
Chamisa told me he would have a meeting with the
third accused (Mahlangu) on
Monday over the matter," said
Chinotimba.
He insisted that his phone was stolen when he
returned from getting
his main course during lunch hour. He was sitting next
to Mahlangu.
The trial continues today with Dowa expected to
testify.
Wongai Zhangazha
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
22:27
THE constitution-making process has ground to a halt because of
disagreements, infighting and a lack of funds.
Munyaradzi
Mangwana, co-chairperson of the parliamentary select
committee, which is
spearheading the process, told the Zimbabwe Independent
that the
constitution may not be completed until 2013.
In an
exclusive interview, Mangwana, a Zanu PF legislator, said the
delay was
partly due to a battle over control of the process between the
parliamentary
select committee and constitutional affairs minister, Eric
Matinenga.
Mangwana said that the process, which was
initially expected to finish
within 18 months from the setting up of the
25-member select committee in
April, was also hamstrung by a serious lack of
funds.
"All I can promise is that the process will be completed
by 2013 -
that is when the next elections are supposed to be held. At the
moment, I
don't see us finishing within 18 or 24 months because of financial
constraints," the former cabinet minister said.
He
explained the inclusive government was failing to raise US$9
million
required for its outreach programmes and other consultations.
Government has written to the European Union, USAid, UNDP and donor
countries like Germany and Sweden seeking financial aid for the process.
Only UNDP has responded with US$2 million.
"We have no
cars, no offices and we use our personal phones," Mangwana
said. "We need
150 vehicles. We sent our budget to the Ministry of Finance
and are awaiting
their response. We understand what the economy is going
through and that
government has no money."
In addition, Mangwana said the
political parties were still in
disagreement about using the Kariba draft
constitution as the basis for the
process and negotiations were still
ongoing.
While Zanu PF wants to use it, the Tsvangirai-led MDC
is insisting
that the process should be driven by the people with the Kariba
draft
constitution used as a reference point, like the NCA draft, the
Lancaster
House constitution and the rejected 2000 draft
constitution.
Matinenga, an MDC-T legislator, argued that the
Global Political
Agreement (GPA) does not state that the Kariba draft
constitution is the
founding document for the process but clearly says that
the constitution
should be owned and driven by the people.
He said it was up to the principals to resolve the matter and the
longer
they took to discuss and conclude the issue, the more difficult it
would be
to meet the 18-month deadline.
Matinenga pointed out there was
a need to make the process more
efficient in order to avoid the disruption
by some Zanu PF members at the
first stakeholders meeting in
July.
"The three principals, as the leaders of the political
parties, must
sit down and discuss what needs to be done to make the process
more
efficient. We want a process that is efficient and which does not
negate a
people-driven constitution," he said.
MDC-T
secretary-general and chief-negotiator Tendai Biti said the
government was
planning to look into how the constitution-making process
should
proceed.
"It is clear that people should write their
constitution The problem
at the moment is the impasse on the process and
lack of leadership," Biti
said. "There is a kwashiorkor of leadership in
this process and that must be
dealt with."
Deputy Prime
Minister Arthur Mutambara is on record saying the GPA,
that gave birth to
the unity government, was silent on when fresh polls
would be held in the
country. He said if the inclusive government works well
there would be no
reason for elections in the near future.
Some senior Zanu PF
officials who lost the last elections said they
would launch a massive
campaign for elections to be held by 2011.
One politburo member
said: "These people from all the parties are now
enjoying power and don't
want to let go. When the time comes, we will lobby
and campaign for
elections to be held as soon as the constitution-making
process is
completed."
Asked if delaying the process was a deliberate move
to extend the
inclusive government's lifespan to a full five-year term,
Mangwana said it
was unfair to cut short parliamentarians' five-year term in
office.
He said the country should allow for national healing,
economic
recovery and take note that elections were the main cause of
violence in the
country.
Already there is talk by the three
political parties of extending the
one-year moratorium on by-elections by
three years.
The moratorium, which lapses on September 15,
stops Zanu PF and the
two MDC formations from fielding candidates against
each other for a year,
stipulating that only the party that previously held
the seat could field a
candidate.
Faith Zaba
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
22:19
CO-HOME Affairs minister Kembo Mohadi is now heavily tipped to
become
Zanu PF national chairman if incumbent John Nkomo moves up to replace
the
late vice-president Joseph Msika at the party's congress in
December.
This comes amid reports that some party heavyweights were
also
positioning themselves to land influential positions in the politburo
in a
move calculated to sway President Robert Mugabe's
succession.
Impeccable sources in Zanu PF told the Zimbabwe
Independent this week
that there was a growing list of candidates in the
race to replace Msika and
possibly the chairperson if he is elected
vice-president.
The sources said there was also serious
jostling for the post of
national commissar that was left vacant after the
death of Elliot Manyika
last December.
The sources said
besides Mohadi, another politburo member, Sikhanyiso
Ndlovu, was also
angling for either the vice-presidency or the chairmanship.
Those in the running for either the vice-presidency or the
chairmanship
include Nkomo, Sikhanyiso Ndlovu, Deputy Senate Speaker Naison
Khutshwekhaya
Ndlovu and politburo member Obert Mpofu.
There have also been
efforts to rope in former Zanu PF politburo
heavyweight Dumiso Dabengwa who
quit the party last year in protest against
Mugabe's rule.
Informed sources said there was pressure on Zanu PF strongman Emmerson
Mnangagwa and secretary for administration Didymus Mutasa from their camps
for them to enter the race and seize the opportunity to rise into the
presidium.
Sources said after a series of consultations
last week, influential
Zanu PF officials were now lobbying for Mohadi to
become chairman.
The sources said Mohadi is now preferred ahead
of Simon Khaya Moyo
because he has been a pillar of strength for his party
in the middle of a
sweeping political wave triggered by the MDC since
2000.
Mohadi has always managed to grind victory for Zanu PF
since the 1987
Unity Accord in his Beitbridge political enclave which he
seized as PF Zapu
from the old Zanu in 1985.
"Mohadi is now
racing ahead because he has history as PF Zapu on his
side and has been
strong in the party. He managed to rescue Beitbridge from
the MDC at a time
when the whole of Matabeleland had switched away from Zanu
PF. Besides, he
has also shown willingness to forgive despite being one of
the most harassed
and tortured politicians during the Gukurahundi," one of
the sources
said.
Mohadi was arrested, detained in solitary confinement and
tortured
with a number of PF Zapu heavyweights, including Dabengwa, Lookout
Masuku,
Edward Ndlovu and Welshman Mabhena.
Sikhanyiso
Ndlovu on August 16 followed others in using the state
media as a campaign
platform. He wrote an article in the Sunday Mail in
which he positioned
himself as a contender. Cain Mathema and SK Moyo have
already done
that.
Sources said besides the fight to get into the presidium,
some party
bigwigs were eyeing the influential national commissar's
post.
This is despite a push in the party to restructure the
commissariat by
creating three clusters in the department - the main wing,
the youth wing
and the special projects clusters.
"The
proposal will see three senior party members heading each cluster
in the
commissariat," one of the sources said. "The proposal will result in
the
appointment of three commissars to mobilise support for the
party."
However, the sources said the proposal would be
resisted by party
bigwigs who want their loyalists to occupy the post and
influence power
relations in the party.
The commissariat
department is considered very influential in Zanu PF
because of its power to
supervise all organs of the party, formulate
strategies for the
implementation of the party's political programme and to
organise, supervise
and conduct party elections at all levels.
The sources said a
faction backing Vice-President Joice Mujuru wants
either ministers Nicholas
Goche or Saviour Kasukuwere to become national
commissar.
Goche is current secretary for security in the politburo while
Kasukuwere is
the deputy secretary for youth.
Kasukuwere has gone into an alliance
with the Mujuru faction allegedly
meant to scuttle the ascendancy of
Mnangagwa into the presidium and his
loyalists in any position of influence
in the party.
"The Mujuru faction's position is that if Goche
becomes national
commissar, Kasukuwere should be the secretary for security,
and vice-versa,"
a senior Zanu PF member said.
The sources
said the Mujuru faction was also pushing to have war
veterans leader
Jabulani Sibanda as deputy national commissar.
Sibanda is
linked to the Mnangagwa faction, which played a crucial
role in Mugabe's
bloody re-election campaign last year.
Also tipped to become
national commissar is Mashonaland Central
governor Martin Dinha who is
reportedly close to Mugabe and is not tainted
by the factional fighting in
Zanu PF.
Acting national commissar Naison Ndlovu is also in the
race for the
post.
The sources, however, said it was
"entirely and solely" up to Mugabe
to appoint members of the
politburo.
Zanu PF, the sources said, wanted to revamp the
commissariat by
injecting new blood to strategise how the party can be
renewed and win the
support of the electorate.
The
department, under Manyika, was blamed for Zanu PF's defeat by MDC
in the
March 2008 harmonised elections after it failed to effectively
campaign for
the party and Mugabe.
A report tabled in the politburo recently
by acting commissar Ndlovu
revealed that the party had no solid structures
throughout the country and
that it would not win future polls. Mugabe
ordered the withdrawal of the
report saying it was now a national security
matter.
Constantine Chimakure
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
22:19
THE Harare convent girl in a bright red woolly jersey was the
youngest
by far in a committee room in parliament, but she revealed the
public
loathing and failure of President Robert Mugabe's poisonous
state-controlled
media like none of the experts there could.
"If I can go to America to study medicine, I will never come back
again,"
she told the panel of MPs. "The media made me hate my country." The
crowd
cheered and clapped rapturously.
She spoke at a public
meeting on Saturday called by parliament's media
committee to hear evidence
on the state-controlled daily newspapers, radio
and television whose servile
adulation of Mugabe, their mendacity and
hate-speech against his critics,
are legend.
It is unlikely the MPs expected the spontaneous and
unprecedented
outpouring of anger and scorn from about 200 ordinary people
who railed for
three hours against the media that hold a monopoly enforced
by draconian
law - and when that failed, by bombs against their independent
rivals.
"The Herald is the only newspaper in the world that is
allowed to
publish such crap," raged businessman Paddington Japajapa, to
more cheers.
Six months into Zimbabwe's coalition government,
Mugabe continues to
defy undertakings in his agreement with Prime Minister
Morgan Tsvangirai of
the main MDC, to relax his control of the daily press
and electronic media.
Not a single application has been
considered by Mugabe's authorities
for new television stations, ensuring
that Zimbabwe Television (ZTV)'s
stultifying propaganda faces no local
competition. However, the private
satellite dishes encrusting the grimy
housing compounds of the secret
police, bringing them the BBC, Sky News and
CNN, show how even the converted
cannot endure the tedium of
ZTV.
The ZBC, whose transmitters reach only 30% of the country,
is
similarly guaranteed a monopoly because it remains illegal for anyone
else
to set up a radio station. Proprietors of at least three proposed
newspapers
are anxiously awaiting the official go-ahead even though the
notorious
government commission that closed down four newspapers and banned
hundreds
of journalists has itself expired in confusion. But they dare not
start
their presses for fear of being closed down by presidential
fiat.
"There is no difference between this inclusive government
and the
previous government in respect of media control," said Abel Chikomo,
director of the Zimbabwe Human Rights Forum. "Mugabe remains in total
control. It is critical for him to be able to keep people ignorant and
uninformed, so they don't know what their rights are; they cannot hold him
to account and they don't know what's going on."
Finally
grinding towards establishment is a new media commission,
called for in the
coalition agreement, with significantly reduced powers
from the old
organisation of "media hangmen". Its members are meant to be
chosen jointly
by media experts and MPs, but the process has been fouled
with charges that
MPs from Tsvangirai MDC allowed cronies of Mugabe to slip
into the lists
after threats by MPs of Zanu PF to block the commission
indefinitely.
One change that the uneasy cohabitation
between the two leaders has
brought is that the propaganda has changed
subtly. Instead of Tsvangirai
daily being drenched with expletives like
"prostitute", "running dog",
"bootlicker", the state media simply censor and
distort his remarks to make
him sound like a Mugabe
acolyte.
Tsvangirai's officials lost patience with this in May
while he was
visiting America and Europe. The Herald reported nothing of his
warm
encounter with President Obama, but instead put Mugabe on the front
page
with a picture of an Iranian official. The Prime Minister, a
tabloid-sized
free newsletter boasting large glossy pictures of Tsvangirai,
was launched
on the streets of Harare to joyous
acclamation.
Every Wednesday now, about 60 000 copies are
circulated around the
country, while The Herald, from 120 000 a day about 10
years ago, can barely
manage 20 000 now.
"We are the
biggest newspaper in the country, and we are nowhere near
meeting demand."
said Andrew Chadwick, Tsvangirai's communications director.
"It shows how
people have been starved of decent information."
By Jan
Raath
http://www.thezimbabweindependent.com/
Thursday, 27 August
2009 22:16
CONTROVERSY surrounds the appointment of provincial
governors from the
two MDC formations next month after Zanu PF reneged on an
agreement to share
the gubernatorial posts using the results of last year's
House of Assembly
elections.
Sources in the inclusive
government said Zanu PF was now insisting
that provincial governors were
representatives of President Robert Mugabe
and hence the octogenarian leader
should appoint people of his choice.
Mugabe, Prime Minister
Morgan Tsvangirai and his deputy Arthur
Mutambara - the principals of the
global political agreement that gave birth
to the unity government - in May
reached an agreement on the appointment of
governors and
ambassadors.
They agreed that the governors would be appointed
on the basis of the
March 2008 House of Assembly election
results.
MDC-T would appoint governors in Bulawayo,
Matabeleland North,
Masvingo, Harare and Manicaland while MDC-M would have a
resident minister
in Matabeleland South and Zanu PF would retain governors
in Midlands,
Mashonaland West, Mashonaland East and Mashonaland
Central.
The principals also agreed that the incumbent
provincial governors
would be allowed to serve one year of their two-year
contacts before the new
MDC appointees took over.
The
incumbents were expected to leave office next Monday.
Government sources said Zanu PF had since reneged on the deal and said
the
issue of governors, the rehiring of central bank governor Gideon Gono
and
the appointment of Attorney-General Johannes Tomana were not
negotiable.
Zanu PF argued, the sources said, that the
governors, Gono and Tomana
were appointed by Mugabe in line with the
constitution.
"The Zanu PF politburo felt it had made too many
concessions and they
want to use the issue of the governors as a bargaining
chip," one of the
sources said. "They will declare that there is no
agreement on the
provincial governors and they might even reverse the
ambassadorial
appointments so as to gain mileage on
negotiations."
The sources said Mugabe realised late that the
two MDC formations were
gaining ground and were getting everything that was
being bargained for.
Mugabe, the sources said, wanted to use
the issue of governors to
bargain for the stay in office of Gono and
Tomana.
However, the Minister of State in the Prime Minister's
Office, Gorden
Moyo, said the issue of governors was agreed on by the
principals, but was
quick to point out that a date for the swearing in of
MDC resident ministers
was yet to be set.
"The issue of the
provincial governors and the swearing in of the
deputy Minister of
Agriculture Roy Bennett was resolved and what we are now
awaiting is the
swearing ceremony," Moyo said. "When that will happen is the
prerogative of
the president."
The MDC-T announced in May that it would
appoint former women's
assembly chairperson Lucia Matibenga as governor of
Masvingo, while Seiso
Moyo will become governor of
Bulawayo.
Former trade unionist and Senator James Makore was to
become governor
of Harare, Tose Sansole of Matabeleland North while Mutare
businessman
Julius Magarangoma would be the new resident minister for
Manicaland.
MDC-M has not yet named its candidate for
Matabeleland South, but
former MP for Gwanda Paul Themba Nyathi was tipped
to occupy the office.
The six incumbent Zanu PF governors,
whose tenures were to be
terminated were expected to be paid an agreed
compensation.
Loughty Dube
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
22:12
DEPUTY Energy minister and Harare South MP Hubert Nyanhongo has
declared that his supporters will not vacate two farms in Harare South
despite three High Court orders for them to leave.
The farms -
Nyarungu and Stoneridge - are owned by Jetmaster
Properties and Pinnacle
Property Holdings and have been at the centre of an
ownership wrangle
between the two companies on the one hand and three
cooperatives on the
other.
Nyanhongo told the Zimbabwe Independent this week
that Jetmaster
Properties and Pinnacle Property Holdings were wasting their
time because
the farms were allocated by government to his supporters. He
charged that
the two firms had illegally acquired the
farms.
"Stoneridge was acquired by government in 2000 as well
as Nyarungu for
urban expansion," Nyanhongo said. "Our people applied to be
allocated the
two farms. Some of the applications were made through housing
cooperatives."
He said his supporters were later given offer
letters for the land.
"Offer letters come from the government
and the farms are now state
land. The state also went further to give offer
letters to housing
co-operatives in 2002 which are Chimurenga, Pungwe and
Simon Muzenda and
were allowed to start developing Stoneridge," the deputy
minister said.
He said Nyarungu farm has about 2 500
beneficiaries while Stoneridge
has more than 3 000.
"An Act
promulgated in 2000 states that there is no one who can sell
land that
belongs to the state. No one is allowed to buy or sell land to
anyone
because all land in Zimbabwe belongs to the state," Nyanhongo said.
"Whether
someone went on to buy or sell the land, I don't know how he
purchased it
because it is illegal.
Somebody is trying to intimidate the people
but I want to tell you
that our people are firm on the ground. The
government position remains the
same and we will fight for the land to the
bitter end."
However, in a letter in the possession of the
Independent dated July 3
2009 from the Ministry of National Housing and
Social Amenities signed by an
S Sibanda, it is clear Stoneridge farm which
was previously owned by a Mr
Lloyd Evans was not gazetted for acquisition by
the government.
"The occupants of Stoneridge are Hondo Yeminda,
Moven Mahachi and
Simon Muzenda (cooperatives).
However,
Stoneridge farm was owned by Mr Evans but was not gazetted.
The original
owner sold it to Pinnacle Holdings," read the letter. "This
matter needs to
be resolved by Ministries of Local Government and Lands.
Until this is
resolved government has no legal say on Stoneridge. Amalish
Investments was
never given authority to develop Stoneridge. There is no
legal agreement
between the ministry and Amalish to develop Stoneridge."
Amalish Investments, among other companies, developers and
individuals, had
reportedly developed and disposed of stands on the farms
illegally.
To assert its ownership of Nyarungu farm,
Pinnacle Property Holdings
obtaining three High Court orders for the
occupiers to stop housing
cooperatives, and companies and individuals to
stop selling stands at the
property. The orders were granted in 2003, 2005
and in April this year.
The court, in its ruling, held that
Pinnacle was the legitimate owner
of the land. The legal dispute on
Stoneridge is still pending before the
High Court.
According to an advert placed in a weekly newspaper at the weekend
Pinnacle
and Jetmaster said directors of Amalish and the leadership of the
housing
co-operatives have since been charged with defying the court order.
The two
companies said some of them have since been charged with fraud
arising from
the illegal sale of the stands.
Wongai Zhangazha
http://www.thezimbabweindependent.com/
Thursday, 27
August 2009 22:09
GOVERNMENT ministers from Zanu PF last Sunday walked
out of a post
100-Day Plan cabinet retreat in Nyanga after Deputy Prime
Minister Arthur
Mutambara described last year's harmonised and presidential
run-off
elections as "fraudulent, a farce and a nullity".
Mutambara has since been a subject of attack in the state-controlled
media
and accused of endangering the life of the inclusive government. Our
news
editor Constantine Chimakure on Tuesday caught up with the deputy
premier at
his Munhumutapa offices in the capital to hear his side of the
story. Below
are the excerpts.
Chimakure: What transpired in Nyanga that led
ministers from Zanu PF
to walk out of the meeting?
Mutambara: We had a very good and productive two-day cabinet retreat
in
Nyanga. I made two separate presentations. On the first day, Saturday,
my
topic was: "The Case for Monitoring and Evaluation: The Case for
Embracing
Global Best Practice." This was executed without any hitches. On
the second
day, I presented: "A Review of the Previous Day and an Update of
the
Rebranding and Shared Vision Efforts."
It was during this discussion
that there was an unfortunate
misunderstanding over one matter. Let me state
clearly and up-front that it
was never my intention to insult or to offend
my colleagues in the inclusive
government. I was giving a review of what had
been discussed the day before
in what is called the "Rights and Interests
Cluster of Ministries". This is
the group of ministries responsible for the
tasks of supervising the
crafting of a new people-driven constitution,
national healing, and media
and political reforms. One of the challenges
that the participants in this
cluster identified as impeding progress was
the lack of political will
within the inclusive government.
In
reviewing this matter I sought to emphasise the importance of the
work and
targets of the ministries in question, and dramatise the
categorical
imperativeness of their success.
In particular I was emphasising the
importance of political reforms,
media reforms, a new constitution and
national healing. I indicated that the
core outcome of this government is
the creation of conditions for free and
fair elections in Zimbabwe. This is
critical so that the outcome of our next
polls is not in dispute. We must
build integrity and legitimacy of our
electoral processes so that the losers
congratulate the winners and the
winners form a legitimate elected
government. To buttress my argument I
emphasised that it is essential for
members of the government and the
generality of the people of Zimbabwe to
understand the history, background,
and hence the mandate of this inclusive
government. Vana veZimbabwe
hatifaniri kukanganwa chezuro ngehope
(Zimbabweans, we should not fail to
address the challenges and conditions of
our immediate past because of a
temporary reprieve in our
circumstances).
This inclusive government came into being because our
elections in
March and June of last year were inconclusive and problematic.
This is
common cause and is the reason why we went into negotiations from
June 27
2008 to February 11 this year. There was no government in Zimbabwe
from June
27 2008 to February 11 2009. This is because all the elections of
2008 did
not produce a government. It means in Zimbabwe we have an electoral
disease
to cure. This was the context of the discussion in Nyanga.
Where the discomfort arose was when I used the phrase "The election on
March
29 2008 was fraudulent and that on June 27 2008 was a farce and a
nullity."
Well, every Zimbabwean knows that this is a true
statement. There is
agreement that this is the scientific description of
those polls. The
observers, Sadc and the African Union came to the same
conclusions. With
hindsight one could say maybe I could have looked for more
polite language
to express this agreed fact.
It (government) was
only created after protracted Sadc-facilitated
dialogue. This means everyone
in this government owes their position and
role to the global political
agreement (GPA). There is no leader in this
government who was elected to
their position. We are all products of
negotiations.
It is
important that I say we must endeavour to accommodate each other
and use
measured, inclusive and tolerant language. I will try my best to do
that.
However, there is no space for what I call inappropriate
politeness.
Chimakure: Your comment on the walk-out by the
ministers and their
accusation that you seize any opportunity granted to
attack the party,
especially President Robert Mugabe.
Mutambara: The walk-out was a complete over-reaction. It was
unfortunate
that they chose to express themselves that way. However, as I
have already
conceded, we should all try to use measured language. We must
all create an
environment where the three political parties work together
smoothly and
effectively. As Deputy Prime Minister, I will try my best to do
my part.
However, in the course of deliberations if there is a position
stated or an
issue invoked which colleagues find objectionable, the process
should be to
raise a point of order. The speaker can then be asked to
explain or retract.
We must not intimidate each other by walkouts and
boycotts. What we want in
the country is what we call rational disputation,
democratic
discourse.
Chimakure: What's your comment on seizing every
opportunity granted to
you to attack Mugabe?
Mutambara: This is
news to me. I wonder if this is what I did when I
introduced President
Mugabe at the launch of Sterp, or when I defended and
fought for Zanu PF
ministers to get visas to attend the re-engagement
dialogue in Europe. When
I berated President Obama for discriminating
against a Zanu PF minister, or
took public positions against targeted
sanctions imposed on Zanu PF
ministers; has this evidence been considered as
well? I rest my
case.
I am not a member of Zanu PF, neither am I member of MDC-T. I am
the
president of a separate political party. I am not beholden to either of
these major parties. I reserve the right to take positions based on
principles and values of my party, and damn the consequences.
As a
national leader, principal and deputy prime minister in the
inclusive
government, I have a duty and obligation to ensure the full and
complete
consummation of the GPA. I have to make sure the agenda and
mandate of the
government are successfully executed.
In the process I will make
mistakes. I will learn lessons. However, I
will try my best to be a unifier
not a divider. We should all be driven by
the national interest. We must
subjugate partisan interest to the national
interest.
Chimakure: Is it correct that your outspokenness against Zanu PF and
Mugabe
is meant to win support from the electorate given concerns that Prime
Minister Morgan Tsvangirai has been less critical of the president and his
party of late? Are you targeting future elections?
Mutambara: I am targeting the task at hand. My job is to make sure
that the
government delivers on the promise of the GPA. As one of the three
principals I must make sure that all the outstanding GPA issues are speedily
and amicably resolved.
The GPA and the Sadc Communiqué of January
27 2009 must be fully and
completely consummated without equivocation or
variation. The three
political parties through their three leaders signed a
GPA out of their own
volition. This GPA was crafted with the assistance and
involvement of Sadc
and the AU. It is an excellent example of African
solutions to African
problems. It is a solution by Zimbabwean citizens to
their national
challenge.
Let me dramatise to you the meaning of
our failure to fully implement
the GPA. How credible am I as the deputy
prime minister of Zimbabwe when I
say to an investor, "Come and invest your
money in Zimbabwe, I am going to
respect my agreement with you," when I
cannot keep my own agreement with
myself? Who can have confidence in a
government that does not respect its
own laws and agreements? Where will
credibility of such a regime come from?
Furthermore, what does failure to
implement the GPA mean to the legitimacy
and efficacy of the doctrine of
African solutions to African problems? What
are the implications to the
credibility of Sadc and the AU? So when I speak
out on the outstanding GPA
issues, the problems on our farms, shenanigans in
our courts, violation of
human rights, and the slow pace of media and
political reforms; I am only
doing my job.
I am not driven by partisan or personal interest, but
rather by the
collective agenda of serving Zimbabwe. This is the urgency of
now. The
future will take care of itself.
Chimakure:
President Zuma's visit, are we going to see the resolution
of the
outstanding issues?
Mutambara: The primary drivers of change in
our nation should be the
Zimbabweans themselves. Foreigners can only help us
help ourselves. We must
all gather the political will and determination to
resolve the outstanding
issues. President Zuma and Sadc's role is ostensibly
a facilitative one.
This is why some of us have been outspoken on the need
for convergence on
these matters that are separating us. It is actually
embarrassing and
demeaning that we should be waiting for Zuma or Sadc to
encourage us to
implement things that we agreed to do six months
ago.
Having said that, it is my hope that the presence of President
Zuma
will spur our sense of patriotism and self-respect so that we can do
what is
right for our country and in the national interest of our
people.
http://www.thezimbabweindependent.com/
Thursday, 27
August 2009 21:27
FINANCIAL results trickled into the market this week,
but analysts say
the performance so far is nothing to write home about yet.
And they see the
trend continuing.
BancABC was weighed down by
its Zimbabwean operation which posted a
loss while NMB also sang the blues
with another loss this year.
BancABC Zimbabwe, the regional group's
operation, made a loss of US$3
million due to the decrease in property
prices in the first half of the
year.
But analysts say that once
banks are recapitalised, the outlook could
change by the end of the year and
possibly rise out of a loss position.
An analyst said: "the big three
banks could surprise the market with
profits in this environment judging by
their deposits base but we can leave
room for disappointment too from
them.
"But when it comes to recapitalisation, we expect these banks to
comply without any hurdles unlike the smaller ones."
"Nothing
exciting will come this season. I wouldn't be surprised if
these companies
made losses again in the last half. The outlook is still
very hazy. In fact,
I don't think they will be any real changes," an analyst
said.
Stanbic - one of the elite banks - recorded a net interest income of
US$487
417 and an after tax profit of US347 595 during the first half of the
year
buoyed by growth in non-interest revenue that contributed 92%.
NMB
reported attributable profit of US$1 733 943 while operating
expenses stood
at US$1,8 million driven largely by staff, IT maintenance
costs and property
expenses.
The market will today look at CBZ - a traditional market
favourite for
some excitement.
Insurance sector-a traditional
market turnoff - has conformed to
analysts expectations as a dead sector at
least judging by short-term
insurance provider, Nicoz Diamond, which posted
far from tickling numbers.
Analysts say short term insurance could be
better but life insurance
is not going "nowhere."
"There is little
to nothing insurance. Insurance businesses are the
last ones in line to
improve if the economy takes a turn for the better,"
analysts said.
Others such a Pearl Properties made losses but management at the
property
concern say they could make money by year-end.
Pearl Properties wrote
off 20% of its property portfolio to US$69
million after marking it up to
US$88m in last year. When the company came to
the market with its initial
public offer (IPO) in 2007, the same portfolio
was valued at US$32
million.
But management took some flak from analysts who queried
management for
allegedly understating the extent of value decline of
property prices
arguing that the overall property values in the sector
declined by at least
40% opposed to Pearl's conservative 20%.
Analysts cannot make heads or tails of what to expect this reporting
season
from interim financials because there is no discernible trend in
terms of
performance post dollarisation.
And the last financials on the market
did not help at all, according
to analysts, because the performance was not
an actual reflection of
companies' financial performance post dollarisation,
but mere numbers
derived from an implied exchange rate.
Analysts
believe that only after a full financial year will a
discernable trend be
established saying for now its difficult to anticipate
anything from
companies.
An analysts said: "It's difficult to say what to expect this
year.
Basically companies are coming from a position where they where
trading in a
different operating environment in era of Zim dollars
characterised by a lot
of controls in the form of price controls and
exchange controls among other
impediments. The dollarisation of the economy,
although a good thing, has
not benefited businesses a lot.
For
instance, retailers have a potential to lift turnover and margins
but can't
because disposable incomes have not yet improved.
"But a year from now,
maybe, I will be able to say really where a
company is coming from and where
it is going," analyst said.
Retailers could have cashed in the
dollarisation but continued absence
of disposable incomes has not helped the
sector.
Mobile operator Econet Wireless and beer and beverage maker
Delta
Corporation could, however, excite the market judging by their trade
updates
recently.
Econet said its revenue base had continued to
grow in past months
while Delta told the market in April that beer sales
would continue to rise.
Econet Wireless, the country's largest telecoms
operator, reported a
strong improvement in performance due to its
accelerated drive to sign on
new subscribers.
While full disclosure
would only be given at the end of the half-year
to August, CEO Douglas
Mboweni reported stronger than expected airtime
usage. This he said drove
monthly turnover significantly above the January
and February levels. With
the accelerated growth in subscriber numbers,
Econet hopes turnover will
continue to grow.
Delta sold a total 55 000 hectolitres of booze worth
US$16 million in
February consumed but sales remained steady the following
month as the
company achieved sales of US$16 million in March while 60 000
hectolitres
were consumed in the same period.
Delta CEO Joe Mutizwa
believes the group could have sold 25% more in
April had the group's
production plants been "more operational" and the
company had not faced
supply constraints. This would have seen Delta's sales
rise to around US$30
million if the company had more capacity.
Banks which are traditionally
market favourites are struggling to
raise capital in line with monetary
authorities' demands and this is another
sector analysts are not upbeat
about this time around.
Generally this year's reporting season could
turn out into a big yawn
for financial analysts until a couple of companies
make a takeover bid, IPO,
merger or some such other business move which
could tickle a bored market.
But another analyst says because
businesses can now plan, the market
could see companies making money and
sustainably continue doing so by next
year.
Chris
Muronzi
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
20:45
ZIMBABWE'S bank deposits more than doubled in four months buoyed
by
increased volumes of wired money as the government grapples to restore
confidence in the banking sector.
According to information to
hand, deposits rose to US$800 million from
US$350 million recorded in April
after the completion of the four national
payment systems - cash; point of
sale; real time gross settlement system
(RTGS) and the recently introduced
foreign currency cheques.
"Deposits doubled within four months from
US$350 million in April to
over US$800 million in mid-August owing to an
increase in transactions going
through the RTGS," banking officials
said.
"Cumulative RTGS transactions are now more than US$2 billion from
US$100 000 recorded in April".
With lending rates of up to 10% and
investment rates for the money
market ranging between 6% and 8%, the new
deposit figures are in contrast to
previous years when depositors resented
the troubled banking sector due to
runaway inflation and Reserve Bank raids
on private accounts.
This comes amid an increase on volumes trading on
the Zimbabwe Stock
Exchange which have surpassed US$170 million with the
highest monthly
turnover realised in June.
Sources predicted that
capacity utilisation of banks could have jumped
to 50% from an average of
20% at the beginning of the year. However sceptics
argue that confidence in
the sector could again diminish in the second half
of the year after Reserve
Bank governor Gideon Gono announced plans to
re-introduce the less
significant Zimbabwe dollar.
Following the introduction of the
multi-currency system, the central
bank introduced a phased plan which
requires banking institutions to meet
50% of the prescribed assets by
September 30 2009 and the full capital
requirement of US$12,5 million by
next March.
Presenting his mid-term Monetary Policy Statement last
month, Gono
said "confidence" in the sector could only be improved through
more lending
despite an increase in deposits.
"As monetary
authorities, we are greatly concerned with extreme
instances of
disintermediation of some banking institutions," Gono said.
Bernard Mpofu
http://www.thezimbabweindependent.com/
Thursday, 27
August 2009 18:06
ONLY in Zimbabwe is speaking one's mind to a
gathering of colleagues
regarded as "disruptive". Arthur Mutambara tells his
colleagues in
government a few home truths and all hell breaks loose.
Ministers walk out
in protest - the same ministers who denounced MDC-T
ministers when they
walked out of cabinet!
Then, all the paid
parrots in Zanu PF (and that's a fair number) rush
to denounce him in what
has become their customary collective squawk.
But what
exactly did he say to stir this hornet's nest? He said last
year's elections
were "fraudulent, a nullity and a farce".
But isn't that what
everybody thinks? Didn't several regional heads of
state say the same thing?
Isn't that why Sadc sponsored a government of
national unity - precisely
because the polls had no legitimacy?
So why the melodramatic
walkout? Very simply Zanu PF has been
attempting to reinvent itself in
recent months. It first of all pretended it
had been the victim of violence.
It now claims that it is the MDC-T which is
dragging its heels on
unfulfilled parts of the GPA.
Needless to say, the public don't
buy this. But, living in a bubble of
its own making, Zanu PF propagates a
number of silly claims including the
suggestion that it is more nationalist
than anyone else! Hence the contrived
outrage when Mutambara tells it like
it is.
But what is lost here is that the DPM was talking about
rebranding. It
was impossible to brand a country in a positive way so long
as its leaders
behave badly, was his central point. This is a drum he has
been beating for
some time.
It is a very obvious one. But
it doesn't fit with the delusional
thinking at the top of the former ruling
party.
Nowhere is this more evident than on the subject of
sanctions. There
will be no lifting of sanctions until the political
situation has been
normalised. That means an end to farm seizures and the
vexatious arrest of
MDC-T members, the removal of Johannes Tomana from the
AG's office, the
appointment of Roy Bennett to government, and the opening
up of the media.
President Mugabe and his party want the Prime
Minister's Office to
draw up a "concept paper" which can serve as an
inclusive strategy for
dealing with sanctions, George Charamba told the
Sunday Mail.
"There is a general appreciation that sanctions
are the most
outstanding of the remaining issues and indeed that their
impact is
pervasive and all-blighting," he said in line with the new
Alice-Through-the-Looking-Glass double-speak.
But this
misses the whole point. The West will not lift sanctions
until Zanu PF stops
beating, cheating and lying.
So long as Mugabe's supporters
persist in sabotaging the country's
agricultural base, continue to propagate
hate messages in the state media
and refuse to license alternative media,
Zimbabwe will be regarded as a
rogue state.
Can you imagine
a state in which the losing party retains control of
the mass media to
conduct a rearguard offensive against the winning party
and to oppose
democratic change? That's the same as Burma!
Mugabe is reported
as telling Morgan Tsvangirai that his "expectation"
and that of his party
was that there should be definite steps by MDC-T to
have sanctions removed
"because the party was responsible for their
imposition".
It is to be hoped that Tsvangirai reminded Mugabe that sanctions were
imposed in response to electoral fraud and political violence. The MDC was
on the receiving end!
The president reportedly told
Tsvangirai that the MDC-T should make
specific approaches to individual EU
member countries asking them to remove
sanctions. They are likely to remind
Tsvangirai of the fate of Pierre
Schori, head of the EU's election observer
mission in 2002 who was booted
out for being a little too
observant!
And what should they make of a government that
ignores rulings of the
regional court in Windhoek that has declared the
current wave of farm
seizures contemptuous, lawless, and racist?
Zanu PF must stop dreaming. Sanctions will go only when the main
obstacle to
change has been removed.
The Zimbabwean carried an interesting
statement by Zapu's interim
chairman in South Africa, Dubizuzwe Joli, last
week. He outlined the
politics of patronage in Mugabe's
Zimbabwe.
"If you are connected to the ruling elite you become
untouchable,"
Joli pointed out. Those who refused to acquiesce in the system
are
victimised, he said.
"Look at what happened to Mutumwa
Mawere. Just because he was not well
represented at the top, we had the
state taking away everything he had built
from his own sweat, and after
about five years of him living in exile, we
have Gideon Gono eventually
writing to Mugabe and saying: 'I think we made a
mistake.
We
were wrong on A, B, C, and Mawere should get all his businesses
back because
he committed no crime'.
"If Mawere had remained in Zimbabwe he
would have spent all this time
in jail," Joli added, "paying for sins he
never committed. He might even
have died in there. That is not the way to
govern a country and that is why
we want Mugabe to go."
Can you
imagine anything more damaging as government's recently
announced policy on
Bippas? It is as clear as mud. Foreign investors cannot
be guaranteed
security of tenure on the farms because their presence may be
used "by
people with ulterior motives to reverse land reform", Patrick
Chinamasa told
the Business Herald.
This follows inordinate delays in signing
a Bippa with South Africa.
The government would not tolerate
any agreements that "impinged on the
sanctity of land reforms", Chinamasa
said. "If they are agreeable to exclude
land from the agreements, then the
Bippas will be signed anytime.
"We will however not agree to
agreements that undermine and cause
confusion over the land issue."
The South Africans were then told to stick to mining which they do
best!
You can imagine how this went down in the boardrooms
of Johannesburg.
Land grabs have hereby been translated into a
holy mission which
"cannot be reversed". That presumably includes
multiple-farm owners and
beneficiaries of arbitrary
expropriation.
No investor with a grasp of events in Zimbabwe
will sink his money in
the country in those circumstances.
And
the MDC-T should speak up because Chinamasa is citing the GPA as
grounds for
a national consensus on this murky policy. Once again we see the
peculiarly
Zanu PF charge of "causing confusion" being brought into play. It
is a
serious offence to "cause confusion" within the ranks of the party
faithful.
Professor Welshman Ncube provided an example of
the sort of confusion
that can arise from a policy of cosying up to one's
former enemies.
There were many divergent views on the Bippa
that needed to be
accommodated, he said.
"Some of us were
viewing the whole concept from outside and now we are
inside our view is
different," he said.
Indeed, that's what happens when you
become part of the new property-
owning elite!
By the way, what
exactly does Bippa stand for? Is it Bilateral
Investment Promotion and
Protection Agreement or Bilateral Investment
Partnership Protection
Agreement? Can we have some clarity.
Finally, we learn that the
ZTA's celebrity host programme, which saw
the likes of Joe Thomas and
Luciano being invited to Zimbabwe, has been a
dismal - and expensive -
flop.
The Sunday Mail reported last weekend that critics have
questioned the
wisdom of these ambitious projects that have consumed huge
amounts of forex
with "no tangible results". That in turn has led to more
funds going down
the ZTA drain when Nigerian partners called in to help
produce The Zimbabwe
I Know that sought to market the country in an
"entertaining and creative
way" had ideas of their own as to the
storyline.
The Nigerians were only supposed to "edit a few
things" but soon took
control, we gather.
"They were
supposed to edit and improve on the script that we gave
them, but they
changed everything and it has lost meaning," ZTA boss
Karikoga Kaseke told
the Chronicle. "This is supposed to be a destination
rebranding film, but
they just made it into another film," he said.
The Nigerians'
attempt at "perception management" clashed with that of
the ZTA, it seems,
and the ZTA was "not amused at all" by the changes the
Nigerians made to the
script. After several costly visits to the country,
the Nigerians had "gone
quiet" we are told.
Definitely something wrong here. Who's ever
heard of "quiet"
Nigerians?
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
18:00
LESS than six months have elapsed since Zimbabwe opted to have a
multi-currency-based economy, and only six weeks have passed since the
Zimbabwean dollar was formally demonetised.
However, it is very
much more than two years (if not even longer)
since Zimbabwe unofficially
focused upon foreign currencies as the main
medium of exchange, with the
unlawful - but virulently active - alternative
markets.
These ranged from "parallel" markets operating within the financial,
commercial, industrial and other economic sectors, to the trading by the
"mapositori" in the back streets, bus termini, beer halls, shebeens, and the
like.
As hyperinflation soared, the contempt of the
populace, and of all
elements of economic society, for Zimbabwean currency
became ever greater.
Concurrently, scarcity of essential
commodities consistently
intensified, for those without access to foreign
currencies, or reluctant to
operate within the alternative currency markets
were unable to source
imported and other goods for business consumption or
sale.
This further fuelled the hyperinflation, notwithstanding
commendable
efforts by the Reserve Bank to alleviate the hardship by
licensing some
enterprises to operate in foreign exchange (a compromise
solution when
government was rigidly opposed to any acknowledgement, actual
or implied, of
the worthlessness of the Zimbabwean dollar).
The multi-currency basket approach pursued in early 2009 immediately
became
known as "dollarisation", for the US dollar was assumed as the basket's
foundation, although operating in conjunction with the South African rand,
Botswana pula, British pound and the euro.
Economic changes
were almost immediate, with most scarcities being
replaced by surpluses, and
that being the principal trigger to falls in
prices.
As against
inflation estimated by Professor Steve H Hanke of the Johns
Hopkins
University and the Cato Institute, at 79,6 billion per cent in
November,
2008 (month-on-month), Zimbabwe had 3,17% deflation in February
2009 and
3,07% deflation in March 2009, further deflation in the next
following two
months, and inflation of only 0.6% in July 2009.
However,
almost from the inception of dollarisation, and
notwithstanding the
approbation of many for what was clearly an overdue but
constructive action
by the authorities, motivated by the Reserve Bank, there
were many who
voiced displeasure and opposition to the currency measures,
and called for
the restoration of the Zimbabwean dollar as the country's
currency
base.
These ranged from those in the political hierarchy,
perceiving the
measures as an abdication of "sovereignty" (being supreme,
unmitigated
authority and power), although in probability some of them also
found that
the measures almost brought to a halt their profiteering in their
business
operations, founded upon alternative market currency trafficking,
or upon
exploitation of the market scarcities
circumstances.
Alongside their demands for reversion to the
Zimbabwean dollar, there
were many others who did likewise.
Led
by those who held resources of those currencies which had been
rendered
valueless by the currency redenomination, despite the fact that
even before
the adoption of the multi-currency basket, these Zimbabwean
dollars had very
minimal spending power.
That was very rapidly forgotten, as poverty
abdicated recollection of
the almost wholly withered worth of those
dollars. Concurrently, many
others objected to the operation of a
multiplicity of currencies, some
insisting that Zimbabwe should be
exclusively linked to the US dollar, and
others pressing for exclusive
adoption of the South African rand as Zimbabwe's
sole
currency.
These divergent views had total disregard for the
negative economic
consequences of an environment of uncertainty and validity
due to the
recurrent vehement, divergent demands for change, and similarly
ignored that
such an environment was not conducive to the attraction of
much-needed
investment necessary for the stimulation and entrenchment of
economic
recovery.
They also effectively dismissed that from
the onset of the adoption of
the multi-currency basket, government and the
Reserve Bank were repeatedly
outspoken that, when opportune, Zimbabwe would
revert to its own currency,
save if at a distant future date a stable and
sound currency was introduced
for the entire region.
Instead,
ever more vociferously, there has been a cacophony of calls
for immediate
restoration of the Zimbabwean dollar.
This has grown to such an
extent that it motivated Minister of
Finance, Tendai Biti, to state only a
month ago that if a premature return
to the Zimbabwe dollar would be
imposed, he would resign. He made it very
clear that such action
precipitously taken would have catastrophic negative
economic
repercussions.
Nevertheless, readers' letters in the media,
parliamentarians and
others, persist in the demands for an immediate, or at
least very rapid,
return of the Zimbabwean dollar.
As pressure
and debate for the return of the Zimbabwean dollar grow,
to no small extent
catalysed by such demands by the president and others in
high authority,
Parliament began to focus increasingly on the issue, and one
of its
committees received evidence from the Reserve Bank Governor, Dr
Gideon Gono,
during which he advocated restoration of the Zimbabwean dollar.
However it was significant that he did not suggest that it be
immediate, and
he did not assign a time period for such action.
He did say
that it should be fully conceptualised, evaluated and
strategised, and
implemented as expeditiously as possible.
Nevertheless, the media,
and most of the populace in general, and
commerce and industry in
particular, took it for granted as almost
immediately
forthcoming.
They ignored that, as recently as July 30, in the 2009
mid-year
Monetary Policy Statement, the Governor Gono said: "There are no
calendar
time limits favouring or barring the return of the Zimbabwean
dollar and, as
monetary authorities, we will continue to carefully gauge the
overall
performance of the economy to inform us on the appropriate decisions
or
courses of action to take".
He also emphasised in a
subsequent statement, that "the reintroduction
of the Zimbabwean dollar is
feasible to the extent this is anchored on
underlying real assets or actual
production on the ground", and that it be
fully understood that it was
absolutely unacceptable that resumption of the
Zimbabwean dollar be to
enable "A blind return to the money printing press",
or to send to the
market a message: "To hell with other currencies, here are
new Zimbabwe
dollars."
He said that, instead, there must be a "guarded
reintroduction of the
Zimbabwe dollar, where such new currency will be fully
backed by credible,
tangible and locally available assets, such as gold,
diamonds or platinum,
among several possibilities.
In
addition, he stated that reintroduction of local currency would
require huge
investment in the mining sector, further fiscal consolidation,
trade and
capital account liberalisation, as also of the foreign currency
market
strengthening of institutional credibility, and rebuilding of high
foreign
exchange reserves.
Reading between the lines, therefore, it is
blatantly clear that
reintroduction of the Zimbabwean dollar is not
envisaged as an immediate
action, but one to be properly prepared for, and
then effected when the time
is right.
In other words, very
prudently and correctly, the intent appears to be
to "hurry slowly", to
ensure that the Zimdollar does return, but only when
for the good of
all.
Eric Bloch
http://www.thezimbabweindependent.com/
Thursday, 27 August
2009 17:53
"KNOCK Knock!"
"Who's there?"
"Zim
Dollar."
"%$#*"
This draws all kinds of hilarious and
unprintable responses from
Zimbabweans in the face of a proposed bounce back
of the Zimbabwe dollar.
But if Reserve Bank of Zimbabwe
chief Gideon Gono has his way in his
attempt to bring back the Zimbabwe
dollar, the response to the joke could be
inflation.
A
couple of months later, the response could be three zeroes.
A
year later, Zimbabwe could be back to hyperinflation.
But in
the meantime observers say, young Zimbabwean pupils could begin
counting
beyond one million because up to a thousand will be no good should
the
Zimbabwe unit bounce back.
After getting comfortable with
counting up to a hundred following the
introduction of the greenback and the
South African rand this year, the
little ones could have slackened up in the
numbers game.
This is because economists believe Gono's plan
could be another
economic misadventure that could stoke inflation -- under
control after
Zimbabwe adopted multicurrency system.
Since
the adoption of the US dollar, prices of goods have stabilised.
Gono says
the Zim dollar will now be backed by gold reserves.
Gono
defends bringing back the Zimbabwe dollar on the grounds the
exercise is not
going to be a "blind" one.
Rather, Gono believes a "guarded"
reintroduction of the currency could
work.
But analysts see
an ulterior motive in bringing back the unit. They
believe Gono could be
oiling the printing press once again to finance and
subsidise government
departments and a coterie of government officials as he
did in the
past.
Gono believes that the new currency will have "real and
tangible"
worth.
He said: "Such a new currency will have a
real, tangible worth as
embalmed in the real assets(s) backing
it.
This gives the new currency the characteristic of general
acceptability as a fluent medium of exchange in goods and services
markets."
"Given the country's proven resources of gold,
platinum and diamonds,
among several other minerals, a fully backed currency
which can freely
convert back to the real underlying assets at the instance
of the currency
holders wishes will be having the desirable character of
being a legitimate
store of value. In other words, the currency will have a
stable value of
time given the direct link to the volume of tangible assets
from the real
sector."
But economists say Gono's plan to
bring back the unit without boosting
output in all sectors of the economy
will end in ignominy for the
discredited central bank chief yet again after
failing to institute economic
reforms and slowing
inflation.
They say Gono will only do more harm to the economy
with his latest
experiment.
Harare economist John Robertson
said: "If we try to bring the Zim
dollar back, it will lose value in a week.
You need credibility in your
currency which is not there."
Another economist Daniel Ndlela says: "People lost confidence in the
financial system and if you talk of the Zimbabwean dollar what comes to
people's minds is whether they are going to sleep in queues
again."
Ndlela expressed reservations on the plan to support
the currency on
the amount of resources available.
He said this was
not a wise one given the country's depleted mineral
reserves.
"Technically, if you say that the currency is
going to be based on
gold what if the gold is only 15-18% of the currency in
circulation? Does he
propose that the Zimbabwe dollar he wants to bring back
is going to be used
side by side with multicurrency or a dominant
currency?"
Economists feel that the country's gold is not
enough to back the
Zimbabwe dollar as the dominant
currency.
Ndlela says there is no basis to be used on an
isolated resource.
"The currency is based on the total assets
value of a nation. Even
countries with the richest resources have never
based their currencies on
specific resources," he said.
Robertson believes that Zimbabwe investment laws will not play in Gono's
favour in his plan because empowerment legislation in the southern African
country "scared away" investors.
In his mid-term monetary
policy statement, Gono urged government to
revise the country's empowerment
laws saying Zimbabwe needed to allow
foreigners to own 51%
shareholding.
RBZ claims Zimbabwe has 13 million tonnes of gold
in reserves. At
Zimbabwe's current extraction rate of 20 tonnes, it will
take 650 000 years
for the reserves to be exhausted.
With
platinum reserves of 2,8 billion tonnes, it will take 1 200 years
to exhaust
the reserves at an annual extraction rate of 2,3 tonnes per
year.
Robertson added: "the resource will stay underground for
billions and
billions of years because the empowerment legislation and
proposed
amendments scare away investors."
But observers
say if the proposed Reserve Bank Amendment Bill sails
through, Gono could be
kept in check by Finance Minister Tendai Biti.
Biti and
international financiers blame Gono's quasi-fiscal activities
for
accelerating the decade-long economic decline.
Under the new
arrangement, a Currency Board, or monetary authorities
will issue domestic
currency, backed by foreign exchange reserves.
Gono alludes to
analysts' concerns that huge investment will be needed
for the mining sector
is to produce adequate mineral reserves to back
economic
activity.
In order to achieve his new goal, Gono proposes
fiscal consolidation,
trade and capital account liberalisation,
liberalisation of the foreign
exchange market, strengthening of
institutional credibility and rebuilding
of high foreign exchange
reserves.
But Biti says he will quit should Gono be given the
green light to
bring back the Zim dollar.
He said:" As long
as I am Minister of Finance the Zimbabwean dollar is
not coming
back,"
More worryingly, is President Robert Mugabe's economic
beliefs. He
fired Herbert Murerwa years back for sticking to what the aged
leader
described as "textbook economics" while the people suffered. Mugabe
started
calls for the Zimbabwe dollar to bounce back, and could be urging
Gono to
print money in a bid to curry favour with poor Zimbabweans ahead of
elections.
The gold standard is not currently used by any
government, having been
replaced completely by fiat
currency.
The use of paper money, convertible into gold, to
replace gold coins,
originated in China in the 9th century
AD.
Gold standards replaced the use of gold coins as currency
in the
17th-19th centuries in Europe.
In the 1790s, Britain
suffered a massive shortage of silver coinage
and ceased to mint larger
silver coins.
It issued "token" silver coins and over struck
foreign coins. With the
end of the Napoleonic Wars, Britain began a massive
recoinage programme that
created standard gold sovereigns and circulating
crowns, half-crowns, and
eventually copper farthings in
1821.
According to the know-it-all Wikipedia, in 1833, Bank of
England notes
were made legal tender, and redemption by other banks was
discouraged.
But the following year, the Bank Charter Act
established that the Bank
of England's notes, fully backed by gold, were the
legal standard.
According to the strict interpretation of the
gold standard, this 1844
Act marks the establishment of a full gold standard
for British money.
The currencies or banknotes that were backed
by the gold standard were
the old German reichsmarks, Yugoslav dinars,
Turkish liras, Brazilian
cruzeiros, Croatian dinars, Polish zloty, Argentine
peso leys, Angola
Kwanzas reajastodos, Zairean zaires and Bolivian
bolivianos.
By introducing the gold standards as a Zimbabwe's
monetary system, the
central bank is taking a journey into the
past.
But Gono could be happy, that former US Federal Reserve
chief Allan
Greenspan expressed sympathy with a hard currency basis, and
argued against
fiat money. Greenspan famously argued the case for returning
to a gold
standard in his 1966 paper "Gold and Economic Freedom", in which
he
described supporters of fiat currencies as "welfare statists" intent on
using monetary policies to finance deficit spending.
He argued
that the fiat money system of today has retained the
favourable properties
of the gold standard because central bankers have
pursued monetary policy as
if a gold standard were still in place.
Chris Muronzi
http://www.thezimbabweindependent.com/
Thursday, 27
August 2009 17:45
THE Governor of the Reserve Bank of Zimbabwe, Gideon
Gono, through an
article published in the Herald of August 20 and Financial
Gazette of the
same date, put forward his defence of his proposal for the
reinstatement of
the Zimbabwe dollar. In it, the governor called for debate
over his
proposal.
The governor’s defence made interesting
reading. It is in the spirit
of the governor’s call for debate over the
matter that I am making this
contribution.
The governor
commences his defence by saying: “As a country we had
pinned our hopes on
vibrant financial liquidity being injected by outsiders.
This has not
happened. This is an unfortunate and painful fact.”
Indeed, it
is painful and a fact. But is it unfortunate? I don’t think
so. It is in
fact a great lesson for us.
“Outsiders”, as the governor rightly
calls them, have no obligation
turning on the taps of financial flow towards
us. Every investor, by nature,
is risk averse.
With the
battered image of the country, anyone doing business with us
would need to
be very wary and careful. For sometime to come, therefore,
external sources
of funds will remain elusive. Does the absence of external
funding however
call for the reinstatement of the Zimbabwe dollar?
The governor
mourns the short supply of money in the market. He
laments, “whereas it is
true that too much money chasing too few goods
contributes to inflation, it
is equally true that too little money chasing
many goods and services is
hazardo≠us to the economy and hence hazardous to
the welfare of the
people”.
Whilst the governor has been specific to state that
too much money
causes inflation, whose devastating effects everyone is aware
of, the
governor did not specify what specific effect too little money will
cause.
Did too much money in 2008 put us in a better economic
position? The
answer is that it did not. The governor’s proposal therefore
needs careful
consideration, particularly given that it was during his
tenure of office
that the demise of the Zimbabwe dollar came
about.
Gono made several illustrative points to support his
proposal. The
illustrative points he raised shall be the subject of my
analysis of the
governor’s proposal.
The governor rightly
quotes himself in his Mid-Year Monetary Policy
Statement, July 30 2009 (page
5) that “the existence and stability of a
country’s national currency is
defined and dictated by the barometer of real
economic activity in the
economy”.
The governor’s diction in this particular instance
was very apt. The
“existence” let alone the “stability” of a country’s
currency is “defined”
and “dictated” by nothing other than real economic
activity. He could not
have said it better. The coercive meaning of the word
“dictate” is very
appropriate.
If real economic activity is not
supportive of further money supply,
we have very little leeway, if any, to
manoeuvre levels of money supply.
Unfortunately it was our near complete
disregard of this basic economic
principle that saw the demise of our
currency. When money is printed in
complete disregard to fundamental
economic activity, such as productivity,
the currency so printed is
doomed.
In quoting himself the governor goes further to say,
“Future policies
on the currency issues will therefore stand guided by an
intimate
consideration of the progress we make on key milestones on the
production
front.”
Here, the governor was actually
explaining further what real economic
activity means. A vibrant production
sector gravitates towards creation of
real economic activity, which
ultimately will stabilise a nation’s currency.
Has our economic activity
status reached levels we can describe as vibrant?
Let’s not
make yesteryear mistakes, let us be patient and do things at
the most
appropriate times. In the governor’s own words, “the reintroduction
of the
Zimbabwe dollar must primarily be anchored on the empirical
reality…”
What is the empirical reality right now that warrants
reinstatement of
the local unit? The governor correctly states the existence
of empirical
reality to facilitate return to the local unit but shies away
from
explaining what exact empirical realities need to manifest themselves
in the
economy to trigger reinstatement of the Zimbabwe dollar. As a nation,
it is
important that we pronounce the specific parameters upon which a
return to
the local unit can be consummated.
The governor
went on to say “The most prominent feature of relevance
by order of degree
in Zimbabwe at the moment is that our markets need a
viable medium of
exchange in sufficient quantities to oil the needs of
companies and
households.” The governor seems to imply that the prevailing
illiquid market
justifies the reinstatement of the Zimbabwean dollar.
This notion
distorts the underlying economic fundamentals that need to
be addressed. I
have heard many commentators making remarks to the effect
that rural people
are in severe economic hardship because they cannot access
foreign
currency.
This school of thought seems to suggest that if the
Zimbabwe dollar
were to be re-introduced, the rural people’s money woes
would be a thing of
the past. This is where we have it all
wrong.
In his article the governor outlined some of money’s
basic functions
such as store of value and as unit of account. It is also
relevant that we
also mention one of the major characteristics of money: it
is scarce.
Any elementary text on economics will highlight this
fundamental
characteristic of money. Because money is always scarce, to get
it, one has
to work for it. To work for money is to be productive, being
productive
leads to real economic activity. Earning money without working
for it leads
to economic disaster. Thus every person, rural or urban must
not get money
without working for it.
Thus everyone must be
gainfully employed or engaged in order to earn
money. It is when the
population gets down to working in the fields, mines
and factories that real
economic activity that the governor mentions takes
place. Therefore I do not
see how the reintroduction of the Zimbabwe dollar
immediately puts money in
people’s pockets and enhances market demand.
The governor
dedicated a paragraph he titled, “What I am not saying”,
in which he says:
“It is also critical that stakeholders get it clearly that
what this
governor is calling for is not a blind return to the printing
press…” That
is the gist of the whole matter; blind printing of money. We
made this error
in the past and we need not make the same mistake. Is our
economy ready for
a return to our own currency? Do the real economic
activities on the ground
dictate that we reinstate the Zimbabwe dollar? Do
we now as a country have
political discipline to restore our domestic
currency?
My
assessment is we are still far away from these to be calling for
reinstatement of the Zimbabwe dollar. None of us desires a Zimbabwe dollar
which shortly after reinstatement immediately loses value again in
proportion of the previous local unit. Let us work on the fundamentals
first.
The governor, in his article, intimates the idea of
a monetary system
based on “the gold standard”. This part of the governor’s
article was very
exciting. This seemed to mark the governor’s return to
‘book economics’. The
gold standard basis of money supply is an old-age and
now abandoned basis of
monetary policy the world over.
It has
its own attendant problems. The value of bullion locked up in
central bank
vaults as represented by money supply in the economy may not
necessarily
represent real economic activity within the country. What is
critical in the
principles of money supply is underlying real economic
activity; anything
divorced from this will cause distortion in the economy.
The level
of distortion will be determined by the level of divergence
from the correct
principles. Fiscal and political discipline goes a long way
in stabilising
the monetary policy front.
By his admission, there will be need
for “huge investment in the
mining sector to produce adequate mineral
resources to back economic
activity. The country’s mine houses should
therefore be adequately
resourced”. While the governor’s proposal of gold
standard based monetary
policy sounds plausible, it suffers from one glaring
oversight.
The proposal, expounded in a six-stage process, seems to
centre on
making the money available first and real economic activity to
follow later.
Money supply and real economic activity move in step with each
other and not
in isolation.
Ideally, real economic activity
growth must take place first, followed
by an increase in money supply. While
the reverse process has been tried
elsewhere, it has yielded little
success.
The danger of making the money available first is that
the money may
then never be used for real economic activity as
envisaged.
Where, in the first instance, will the funds for huge
investment
required in the mine houses to produce the required gold and
diamonds come
from? Which is wiser: to produce huge gold, platinum and
diamond reserves to
store in central bank vaults as an anchor of our
currency, or to sell the
same and earn foreign currency? It sounds easier
said than done. It is not
the best way to go. Even at our work places, we
don’t earn the money first;
we work first and then earn the
money.
One other important factor is that the Zimbabwean
population, rural
and urban, is now well versed in the intricacies of
currencies and their
exchange rates. Prematurely introducing the Zimbabwean
dollar will simply
see them rejecting it as they did
previously.
It is therefore imperative should ever the Zimbabwe
dollar be
reinstated, as it eventually should, it should win the confidence
and
support of the people.
At any rate, a currency is meant to
assist the transacting public and
it is therefore unadvisable to reinstate
that which may be discarded from
the onset. We also need to take cognisance
of the fact that people are
already using stable currencies to which they
will compare the local unit
when re-introduced.
While I
agree with the governor that we need at some time to reinstate
the Zimbabwe
dollar, it is the timing of such reinstatement which must be
handled with
care. I do not agree to a reinstatement of the local unit based
on notions
of restoring lost national pride, sovereignty or any other
similar
notion.
Let us at this juncture, as a nation, strive for real
economic
activity. Let the politicians, economists, industrialists, civil
society,
etc, endeavour to create a conducive economic
environment.
Gradually, as is already beginning to happen, real
economic activity
will start building until it reaches levels when we can
start thinking of
the reinstatement of the Zimbabwe dollar. The demise of
the Zimbabwe dollar
was mainly as a result of happenings on the political
front. As long as
political stability and tolerance have not normalised, it
may be too early
to talk of a reinstatement of the local
unit.
DM 0913437999, 664844 Economic commentator based in
Harare.
By Darlington Mutingwende
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
21:59
THERE are disappointments across the board with the unity
government
and the once quick-out-of-the-gates transition cabinet team seems
to have
hit some bumps.
There were scores of items listed on
the transition team's to-do list
under the 100-Day plan. Those ticking boxes
here and abroad have more Xs
than ticks on their logs. The GNU is failing to
get the job done.
In Nyanga, at a retreat organised to
assess the success of the 100-Day
plan, Prime Minister Morgan Tsvangirai
read out the embarrassing report card
and told us what we expected to hear:
the GNU has not delivered. This is
beginning to cause problems in the uneasy
marriage.
Parties to the agreement have started to accuse each
other of
sabotaging the project. DPM Arthur Mutambara's robust statement in
Nyanga
describing the elections last year as a fraud, has provided Zanu PF
with a
look-in in the blame game.
Mutambara gave a hostage to
fortune. He is suddenly the biggest threat
to the health of the government
of national unity. Government propaganda was
this week rolled out to fire
volleys at the DPM who merely stated the
obvious.
This sideshow
cannot however mask the fact that there are fundamental
problems, not just
revolving around the power play between the principals to
the agreement but
to do with bureaucratic arrogance by sections of the
government who believe
that they can wage a war against the world and win.
Justice
Minister Patrick Chinamasa this week made some potentially
damaging
revelations about how our government perceives bilateral trade
agreements.
Commenting on the delay in the signing of the bilateral trade
agreement with
South Africa, Chinamasa said Zimbabwe would not sign an
agreement that
"impinged on the sanctity of land reform". He said Zimbabwe
was prepared to
sign the agreement as long as it excluded issues to do with
land reform. He
said there was a section in the agreement that had the
"potential to open
the way for a reversal of land reform".
Chinamasa's subterfuge
here is as hopeless in the eyes of potential
investors as it is damaging to
any attempts to have Zimbabwe re-admitted to
the community of nations. His
pronouncement is an admission that the
government is not prepared to pay
compensation to dispossessed South African
farmers. He is also admitting
that the government of Zimbabwe cannot
guarantee the farmers' business
activities here. The South Africans should
concentrate on mining instead, it
was said.
This all amounts to the unfortunate admission that
Zimbabwe cannot
guarantee property rights of foreigners wanting to come to
invest in farming
in this country.
It also tells us a lot
about government's retrogressive view on
getting basic things right in
crafting a respectable investment policy.
Zimbabwe requires foreign
investment and technical support in all sectors of
the economy including
agriculture.
Investors in agriculture require state protection.
Investors should be
free and confident to approach the courts in the event
of a dispute
regarding land ownership. The executive should be prepared to
respect the
decisions of the courts and law enforcers should execute
decisions of courts
to protect property. But more importantly fair
compensation, based on
clearly laid down valuation standards, should be
guaranteed in any bilateral
agreement in the event an investor wants
out.
Our rulers have however decided to take a myopic view that
because the
country does not have funding to compensate farmers at the
moment,
compensation cannot be included in a crucial bilateral agreement.
This does
not resonate with government's own position on enhancing bilateral
relations. In April at the launch of the 100-Day plan, Finance minister
Tendai Biti had this to say about relations with other countries: "In short,
what is required is to create confidence and sculpt a construction that
Zimbabwe is in an irreversible paradigm shift.
"Over and
above the Sadc initiatives underpinned by South Africa,
there should be
serious engagement with all cooperating partners, including
the World Bank,
International Monetary Fund, as well as the African
Development Bank, with
the objective of restoring the country's status as a
credible recipient of
external financial assistance. Hence, as part of this
strategy should be an
aggressive programme of bilateral engagement with all
the key strategic
countries".
South Africa is a key strategic partner of Zimbabwe
and relations
should be mutual. Chinamasa and his ilk cannot therefore hide
behind the
tired mantra of the "sanctity" of land reform to bend
internationally-accepted investment rules. We cannot have investment
policies which protect rights of miners and other industrialists while
promoting chaos and arbitrage on the land.
Zanu PF's Paul
Mangwana was quoted last week as saying mistakes were
made in the
implementation of the land reform programme. We cannot use the
same mistakes
to make policies and defend the glaring aberrations which have
turned this
country into a pariah state.
http://www.thezimbabweindependent.com/
Thursday, 27 August 2009
18:19
SOUTH African President Jacob Zuma faces an unenviable task of
breaking the deadlock on serial violations of the Global Political Agreement
(GPA) and clearing outstanding issues which continue to polarise political
relations between the parties involved while threatening the unstable
inclusive government.
Zuma arrived in the country yesterday and
held meetings with President
Robert Mugabe, Prime Minister Morgan Tsvangirai
and Arthur Mutambara on the
current political situation, focusing on
lingering GPA issues. He is
expected to hold further meetings with all the
principals together today.
Zuma will also today officially
open the Harare Agricultural Show, but
his main mission is to push for a
resolution of disputes that have largely
rendered the limping government
dysfunctional.
The talks will show whether Zuma has the
political leverage to tackle
the stubborn outstanding issues and turn around
the fortunes of a country
ruined by a decade of misrule.
In his
capacity as Sadc chair Zuma will hold meetings to sort out
issues which
could explode into a crisis at the forthcoming regional summit
in the DRC if
left simmering.
The issues include the dispute over the sharing
and swearing-in of
provincial governors, the appointment of Reserve Bank
governor Gideon Gono
and Attorney-General Johannes Tomana, the swearing in
of Deputy Minister of
Agriculture Roy Bennett and the arrests of MDC-T
MPs.
There is also a dispute over constitutional reform process
and
appointment of members of constitutional commissions, especially the
media
one. The quarrel over the mandate of the ministries of Information
Communication Technology and Transport is also another
matter.
Then there is the issue of the review of the six months
of the
inclusive government which might open a Pandora's Box by bringing up
all
unresolved or parked issues.
Of course there has been
slight movement on a few issues, including
the appointment of diplomats and
meeting of National Security Council. The
issue of permanent secretaries was
resolved earlier via capitulation by the
MDC factions.
Zuma
will also have to help break the deadlock on the issue of
constitutional
reform. There is an impasse over the process and leadership.
The process is
now consumed by chaos and confusion. This is a critical issue
because if the
process stalls or worse still collapses, there would be no
elections perhaps
until 2013.
The new democratic system will require a
constitution that establishes
the desired framework of the democratic
government. The constitution should
set the purposes of government, limits
on governmental powers, the means and
timing of elections by which
government officials and legislators will be
chosen, the inherent rights of
the people, and the relation of the national
government to other lower
levels of government.
Within the central government, if it is
to remain democratic, a clear
division of authority should be established
between the legislative,
executive, and judicial branches of government.
Strong restrictions should
be included on activities of the police,
intelligence services, and military
forces to prohibit any political
interference.
In the interests of preserving the democratic
system and preventing
dictatorial trends and measures, the constitution
should preferably be one
which establishes a devolved system with
significant prerogatives reserved
for the regional and local levels of
government. This is how best to
introduce a democratic
dispensation.
The current process of constitution-making is
flawed and cannot
produce such a desired document.
Zuma has a
mountain to climb. Mugabe and Zanu PF are recovering and
becoming
intransigent again.
On the relatively easy issue of governors, for
instance, the parties
had agreed on the formula and when the new governors
must come in but Zanu
PF is now backtracking, claiming it is Mugabe's
prerogative to appoint
governors who are his representatives in
provinces.
Mugabe is also determined to refuse outright to
compromise on the Gono
and Tomana issue. There is going to be a vicious
fight on this before the
matter could be closed.
The MDC is
arguing that Gono and Tomana were appointed in violation of
the MoU signed
by parties in July last year. The MoU froze senior government
appointments
pending the conclusion of inter-party talks.
However, Mugabe is
saying despite the MoU he had a constitutional
obligation to make those
appointments.
Following the House of Assembly's adoption on
July 30 of the MDC-T
resolution calling for the appointment of a Select
Committee to investigate
Tomana's conduct in all politically-motivated
prosecutions, the next step is
for parliament's Committee on Standing Rules
and Orders (CSRO) to appoint
the members of the Select
Committee.
As with all parliamentary committees the membership will
reflect the
political composition of the House. The CSRO meets on Monday.
Zanu PF says
parliament cannot investigate the Attorney-General. This has
intensified the
battle over the Tomana issue.
Zuma would
need to use all his diplomatic savvy, experience and the
capabilities of his
country, which are largely undeliverable in the
circumstances, to resolve
these issues. Maybe his experience in dealing with
the intractable Burundi
conflict will help.
Zuma would need to be firm, yet measured in
his approach. Clear
thinking is required as to how the dispute could be
cracked.
The parties and their leaders - including Zuma - must
always remember
that in negotiations it is not the relative justice of the
conflicting views
and objectives which determines the content of a
negotiated agreement. The
outcome is largely determined by the power
capacity of each side.
This is what the GPA reflects and the sooner
the parties and their
officials understand this, the better. But the hard
truth is that Zuma faces
an uphill task to get the job done.
Dumisani Muleya
http://www.thezimbabweindependent.com/
Abuse of Aids Levy Fund deplorable
Thursday, 27 August 2009
22:06
RESTORATION of Human Rights Zimbabwe (ROHR) is perturbed by the
massive plunder of the Aids Levy Fund by the National Aids Council (NAC)
when thousands of HIV/Aids patients are dying and 400 000 more are in dire
need of anti-retroviral drugs.
In 1999 the government
introduced an Aids levy on all taxpayers to
fund the work of the NAC. The 3%
Aids levy that is deducted from the workers'
hard-earned salaries should
automatically make them important stakeholders
of the fund, with full rights
to inquire about the way it is managed to hold
NAC accountable.
NAC
has also been constrained by poor management and lack of resources
since its
formation in 1999 and at a time when the country is grappling with
calamities caused by HIV/Aids, it is appalling that state institutions are
finding solace in squandering critical funds on luxury vehicles and
channelling funds to electoral and quasi-fiscal activities funded by the
central bank. Zimbabwe is in need of a visionary leadership which equitably
distributes resources across the entire socio-economic and political realm
of this country rather than aggrandisements of narrow personal
interests.
ROHR Zimbabwe strongly believes that development depends on
good
governance and respect for people's rights. As the country is in need
of aid
from the international community to combat the Aids pandemic, it is
incumbent upon the leaders to exercise high-level transparency and
accountability to foster donor confidence in the handling of public
funds.
Mismanagement of tax payers' money sends wrong signals to
potential
funders on the state institutions' capacity to exercise corporate
governance.
We call for an audit and an investigation in the
operations of NAC and
if there is abuse of public funds, the law should make
the culprits in the
scandal accountable.
The relevant stakeholders
are disenfranchised by the absence of a
meaningful interface with the NAC or
any other legal body that responds to
their enquiries, be it on a single or
collective basis.
There is an urgent need for
the
establishment of such an interface to facilitate the restoration
of this
right in the form of a truly independent Zimbabwe Anti-Corruption
Commission
through which all stakeholder voices are channelled.
Restoration of
Human Rights (ROHR) Zimbabwe,
Information Department.
---------------
Moyo Must Substantiate Spying
Accusations
Thursday, 27 August 2009 22:03
JONATHAN Moyo's article "Of African governance and dead horse
flogging"
(Sunday Mail, August 23) is a classic case of putting the cart in
front of
the donkey.
He darkly implies that Zimind group projects editor
Iden
Wetherell has access to intelligence information about the alleged
spying
activity of his journalist friends expelled from Zimbabwe -- Joe
Winter and
I in 2001, Andrew Meldrum in 2003.
Our expulsions
were illegal, arbitrary and unfair. The
immigration authorities and police
never produced any scrap of evidence
about our so-called "illegal
activities".
In my case, not even a letter informing me that my
valid work
permit would be cancelled and that I had been given 24 hours to
leave the
country. I learned about it because a man, purporting to be a
reporter from
the Herald, called my editor at the Mail & Guardian in
South Africa, told
them the news and asked for my job!
My job
had been to report on gross human rights violations, on
Dr Chenjerai
"Hitler" Hunzvi's torture clinic, Zanu PF militia in Mberengwa,
the
repression of the MDC, and the "signature bombing" of the Daily News
which,
I said, only trained army engineers could have rigged so expertly
with
dynamite and anti-tank landmines. The next week I was expelled.
A
few days later, in reply to a question from MDC MPs, Patrick
Chinamasa
accused me in parliament of being a spy for Unita and Jonas
Savimbi. Not one
shred of evidence except his word was shown.
I guess that it is
difficult to tie my home country, Uruguay, to
a neo-colonial British plot,
so Savimbi was the closest thing. I speak
Spanish, Savimbi spoke Portuguese
-- there is a connection! Bingo! I am a
new Latin Mata Hari.
Thank you for the comparison but accusations must be
substantiated.
Otherwise, they are allegations, rumour and gossip.
" Those
responsible for the security of the country" who decided
on our expulsions
should bring proof to the court of justice.
They can't. This is
why they are attacking Wetherell: shoot the
messenger who reminds the world
how press freedom was, and is, under attack
in Zimbabwe.
Mercedes Sayagues,
South Africa.
-----------------
SikhalaRrebel With a Cause
Thursday, 27 August 2009 22:03
I HAD the rare privilege of
attending a Quill Club session a few
days ago in town and former St Mary's
MP Job Sikhala happened to be the
guest.
The notion
that had been planted in me that he was "lost" was
quickly eradicated as he
articulated his agenda, vision and mission amongst
the
scribes.
I never knew he was such an intellectual powerhouse,
a fluent
speaker and a man with great promises of things to
come.
His great insight and pluck in the midst of adversity
left me
not only bamboozled but dumbfounded. If this man is a "rebel" as
they say, I
concluded that he is a rebel with a
cause.
I had always thought he was a lightweight and a
"jobless" guy as
his detractors want to say and I had always dismissed him
with contempt.
I will never judge a book by its cover
again nor by simply
hearing reports from other people.
Herbert Mugwagwa,
Harare.
------------
We Should Only Forgive the Penitent
Thursday, 27 August 2009 22:01
THE Masvingo branch of the MDC
would like to reaffirm its full
support to the MDC leadership and Deputy
Prime Minister Arthur Mutambara's
remarks during the recently held cabinet
retreat in Nyanga.
To people like Jonathan Moyo who claim
that our party president
does not represent anyone we say Mutambara is the
leader of a party with 10
MPs and we also have support from the other
provinces besides Matabeleland.
Whilst our members and supporters are not as
many as the case of the MDC-T
and Zanu PF, the truth of the matter is that
we are making in-roads
countrywide.
Moyo's
utterances confirm the general belief that he is aligned
to Zanu PF and that
he and his associates are trying by all means to destroy
our party as they
think we are occupying their space.
We stand behind
Mutambara's utterances because he highlighted
the madness that characterised
last year's elections but did not necessarily
attack the person of Robert
Mugabe or Zanu PF.
Surely the main reason why we have
this creature called the GNU
is because we agreed that the last elections
were not free and fair. The
objective of this government is to put in place
a conducive environment for
free and fair elections and to improve the
standard of living of
Zimbabweans.
Is it then a crime to
say the truth when we all agree that for
us to reconcile we need to be frank
with one another and the truth indeed
sets us free. We should only forgive
and forget those who ask for
forgiveness.
John
Zishumba,
MDC Masvingo Provincial Secretary.
------------
Zanu PF Must Deal With the Truth
Thursday, 27 August 2009 18:25
ZANU PF cabinet ministers walked
out of a strategic planning
retreat in Nyanga over the weekend, fuming that
Deputy Minister Arthur
Mutambara had insulted them after telling them the
truth that they had not
won the 2008 harmonised
elections.
Although Mutambara should have used a different
platform to
express his views, it is important for the Zanu PF ministers to
know the
truth, that Robert Mugabe and Zanu PF did not win last year's
elections.
It is also important to recall that just
recently Zanu PF --
with the aid of its mouthpiece the Herald and ZBC -- was
also fuming when
MDC ministers snubbed a cabinet meeting in frustration with
the delays in
resolving sticking points in the Global Political
Agreement.
Although the MDC's concerns were genuine, Zanu
PF and its
apologists were irked by the MDC's snubbing of the
meeting.
However, it is surprising that Zanu PF chose
this time to be
disrespectful of Prime Minister Morgan Tsvangirai and
decided to walk out of
an important meeting just because they had been told
the truth by Mutambara.
We hope that Mutambara will be
bolder and repeat what he told
the delegates in Nyanga straight to Mugabe's
face that indeed he cannot
claim to have won the 2008
elections.
Trymore Mazhambe,
Harare.
------------
SMS The Zimbabwe
Independent
Thursday, 27 August 2009 18:24
OUR
condolences to Regional Integration and International
Cooperation Minister
Priscilla Misihairabwi-Mushonga and her family over the
sad and tragic loss
of her husband Dr Chris Mushonga so soon after the death
of Vice President
Joseph Msika. Please do not despair but remain resolute in
nation building
as exemplified in the role you played in the formation of
the
GNU.
Forward ever, Bulawayo.
GOVERNMENT
departments, especially Zimra and the Transport
ministry, should tell us
where the road toll funds (road access fees) that
every light vehicle, heavy
vehicle and bus have been paying for the past
years have gone? There is no
point in making road users throw their
hard-earned money into a bottomless
pit with no accountability or visible
sign of the money being put to good
use. Please account for what you have
taken from us first before asking for
more.
Mwanawenzira.
THE process of national
healing should reach out to all
Zimbabweans. The current process cannot
succeed unless it is led by people
without dented
credentials.
Chibox, Marondera.
IT'S
appalling to note that "heroes" seem to be people aligned
to Zanu PF. Why is
hero status determined by Zanu PF's politburo when it's
supposed to be a
national matter?
Latty.
IF Robert Mugabe
claims to be a president who was popularly
elected by the people because
they love him, he should walk along the
streets of Bulawayo and Harare
without his bodyguards just for an hour. That
would be a simple test of his
popularity.
S'gubudu.
GIDEON Gono is a skilled
money printer whose expertise is
currently not being utilised. That's why he
is talking about bringing about
the Zimbabwean dollar. My advice to him is
that he should try the Herald --
I am sure they need an extra hand in their
printing press.
Sam, Chinhoyi.
SINCE when did
Gideon Gono realise that money is printed against
gold deposits? Was he not
the governor when money was being printed with
reckless abandon? Printing
money without gold deposits is tantamount to
stealing from citizens
(invisible taxation). It is also arrogant for Gono to
label those opposed to
him "arrogant" or "incompetent". His incompetence
speaks for
itself!
Zero dollar.
GIDEON Gono wants the
Zimbabwean dollar to be brought back for
his own gain. We will not be fooled
by his claim that it would be in the
public's interest.
Economist, Harare.
GIDEON Gono must remember that it was the
then acting-Finance
minister Patrick Chinamasa who introduced the multiple
currency system. Even
his most ardent of supporters had lost faith in the
Zimbabwean dollar.
Economist.
AS long as we
have people like Gideon Gono, Johannes Tomana and
George Charamba in this
government certainly we must be wary of our
tomorrow.
Washie
Charamba, Hatclife.
THE MDC-T leadership is appearing to be
more like the system
they once opposed. First Morgan Tsvangirai said Robert
Mugabe was an
"indispensable" part of the GNU and Giles Mutsekwa claimed
that the ZRP
never banned demonstrations. For all those who support the
"change
government from within" mantra here's simple logic for you: if you
mix good
and bad tomatoes you will eventually spoil the whole
lot.
Analyst.
JOB Sikhala better rejoin the
real MDC! I am sure he has now
realised that Morgan Tsvangirai is the true
leader of the MDC.
Homes, Chivi.
ZIMBABWE
Broadcasting Holdings should change to Zanu
Broadcasting Corporation and
should only expect the purchase of their
licences
from none
other than Zanu PF members.
Weary listener.
HARARE mayor Muchadeyi Masunda's car and mayoral inauguration
party are a
tragic waste. That money could have bought two refuse trucks and
the money
spent on eats and drinks could have been bought food for thousands
of
orphans. They have boarded the gravy train.
Cleka
weDowasuro.
WE are getting a raw deal from Zesa as
electricity is available
on average of six hours in Glen View per day. I
wonder if it is still load
shedding or shutdown! At the end of the month we
pay US$30. Zesa is ripping
us off.
Tau,
Glen-View.
MANY commuter omnibus drivers are too young to be
entrusted with
passengers lives. Many of them are between 19 and 25 years of
age especially
those driving in Kuwadzana. The government is just turning a
blind eye.
Concerned commuter.
http://www.zimonline.co.za
by Andrew Moyo
Friday 28 August 2009
HARARE - Zimbabwe's political
environment remains fragile, top platinum
producer Zimplats Holdings said on
Thursday, in a statement that appeared to
confirm fears that an uncertain
political future could undermine efforts by
the country's unity government
to resuscitate the economy.
Zimplats, which is owned by South Africa's
Implats - the world's second
biggest platinum producer -- praised measures
implemented by President
Robert Mugabe and Prime Minister Morgan
Tsvangirai's government to revive
the economy that it said had seen an
improvement in the operating
environment for business.
But the mining
giant that spoke as South African President Jacob Zuma
arrived in Harare to
on a mission to try to break a deadlock threatening
Zimbabwe's unity
government said the success of the unity government was
critical to any
effort to revive an economy in sharp decline for the past
decade.
"A
coalition government of all three political parties with representation
in
the Zimbabwe parliament took office during February 2009. Although much
remains to be done, potentially favourable policy changes have been
initiated and pleasingly this has resulted in an improvement in the
operating and living environment in the country," Zimplats chairman Mike
Houston said in a statement.
Zimbabwe's coalition government has
managed to halt hyperinflation and
unveiled several measures in a bid to
revive the battered economy but a host
of political problems including
outstanding issues from the power-sharing
deal threatens to derail the new
Harare administration.
"The political climate remains fragile and is only
sustainable if all
parties remain committed to the success of the coalition
government and the
required regional and international support is
forthcoming," Houston said.
Zimplats said the recovery of Zimbabwe's
shattered economy will also hinge
on the international community honouring
financial pledges made earlier in
the year.
Zimbabwe has asked for
US$8,3 billion from the international community to
help rebuild the economy
but only a trickle of this has been realised,
mostly from neighbouring South
Africa.
Zimplats has major operations in the Ngezi District, about 140
kilometres
southwest of Harare where it is undertaking a US$340 million
expansion
programme - one of the largest investments to continue during the
turbulent
times.
"Over several years, shareholders' attention has
been drawn to your board's
deep concern about the difficult socio-economic
situation that has prevailed
in the country for the greater part of the past
decade and its effects on
the country's infrastructure and the operations of
your company," Houston
said.
The company has successfully completed
the majority of the Phase 1 expansion
which will result in 88 percent
increase in platinum production from 96 000
to 180 000 ounces per
annum.
Mugabe is expected to commission a new concentrator at the mines
soon. -
ZimOnline
http://www.travelmole.com/stories/1138138.php?mpnlog=1
28
August, 2009
HARARE –
Malaysian Airlines is one of three carriers warned off
services to Zimbabwe
by the African country’s government.
The others are Emirates and
Nationwide from South Africa,
Local news media said the Zimbabwe
government made the move to protect
the national airline, Air Zimbabwe, from
competition and loss of revenue.
Zimbabwe Tourism Association chief
executive Karikoga Kaseke said the
benefit the overseas airlines could have
brought to the local economy in
terms of traffic, revenue “and tourists
telling the true Zimbabwean story”
could have been very
significant.
“Reasons such as ‘we are protecting our airlines' were
cited. What are
we protecting it (Air Zimbabwe) from? They should learn to
compete with
other airlines. That is the only way they can remain
competitive,” said
Kaseke. ′
Air Zimbabwe currently has four
planes flying two Modern Ark (MA) 60s,
Boeing 737 and a long haul
767.
′A total of 18 international airlines have left the country
since the
economic crisis and negative publicity about Zimbabwe started 10
years ago.
These airlines include Lufthansa, Qantas, Austrian
Airlines, Swissair,
Air India, Air France and TAP Air Portugal.
′
Kaseke said the tourism sector had the potential to be among the
leading foreign currency earners in the country. ′
“Areas that
need urgent attention in the industry are its pricing
structure. We are the
most expensive in the region. Destinations compete and
we could lose out in
this regard.”
Kaseke said 2008 was one of the worst years in the
history of the
tourism industry in Zimbabwe and “preliminary results so far
(2009) are not
pleasing”.
http://www.thezimbabwetimes.com/?p=21884
August 28, 2009
By a Concerned Medical
Doctor
MOST of life's everyday experiences can easily be explained by
simple laws
of Physics. Your dreams last night, the way you felt when you
woke up in the
morning, the shoes you decided to wear to work, the way you
got yourself
from the front door to the bus/car, the people you were
friendly to and the
ones you frowned at, constellations in the night sky,
olden day and modern
politics are all subject to its governing
principles.
In fact, the list is endless. These laws even explain the
doctrine of
natural selection among others, those powerful determinants of
who lives and
grows stronger among people and who will eventually wither
away and be
forgotten about.
This article, by means of one of
Physics' most celebrated principles, the
law of conservation of energy,
attempts at explaining the well known vast
imbalances in the distribution of
wealth among Zimbabweans living in the
present day Zimbabwe. It aims to
explain why money send home by those in
exile does not bring a lasting
change to the lives of their beloved ones and
why the current political
arrangement will be very long in causing any
meaningful shift in Zimbabwe's
fortunes.
'Energy can neither be created nor destroyed. It can only be
converted from
one form to another'. This is the law of conservation of
energy, one of the
fundamental cornerstones in Physics. The only way your
neighbour obtains a
tank of fuel (chemical energy) for his back garden
electricity generator
without working hard for it is if someone else has
made it possible for
them, knowingly or unknowingly. This could be a down
trodden, poorly paid
worker in Zimbabwe or in the Diaspora for instance,
expending energy in
working to eventually avail this fuel to them. This is
what the stated law
says. The worker and the ultimate beneficiary of the
toil do not have to be
related or directly connected.
In the same
vein the lighting and heating requirements of a household in
Borrowdale for
example, will be equivalent to the electrical energy produced
by the
generator in the back garden. This electrical energy will also equal
the
chemical energy inherent in the fuel used up by the generator in
generating
it, which in turn equates to the sum total of the physical
efforts,
exertions and toils applied in obtaining this fuel. Things are
generally
principled to work like this.
Here is the analogy. Wealth is that which
gives an individual or society the
ability to perpetuate. It occurs in
different forms and just like energy,
wealth can neither be created
overnight without effort nor can it magically
vanish into the thin air
without trace.
Our failed politicians would rather we believe this is the
miraculous feat
the so- called illegal sanctions pulled off in the case of
Zimbabwe's once
vast abundance.
Just like energy, wealth can only be
shifted from one custodian to another.
This transfer may take different
shapes and forms. It may change hands
fairly and with consent living the
transacting parties satisfied and feeling
in control. Most everyday people
would prefer this way of doing things.
However it may also be moved
illegally and without consent from its owners
via such deplorable activities
as looting, corruption, mismanagement and
nepotism among other
undesirables.
Zimbabwe's national wealth was and continues to be
transferred from the
general citizen, you and me, the rightful custodian of
it to the powerful
and well connected citizens by cronyism, fiscal
promiscuity and outright
greed. It has not just magically vanished as they
would paint, and want
foisted down our throats, for ultimately everything in
the universe has to
balance out as dictated by this universal governing
principle if nature be
holistic.
My countrymen continue to toil in
this Zimbabwe without according reward.
Teachers, nurses, police people,
secretaries and now even soldiers carry on
working but keep getting poorer.
It's more like love not requited.
Heartbreakingly and shamefully wrong. If
wealth, like energy be conserved,
workers' efforts should get according
reward.
Where are we still going wrong in our new political dispensation?
Why are
the doctors still striking? Where is all the wealth of the old? Why
won't it
quickly build up, now that we are all friends singing in unison in
a
naturally well endowed country?
There exists no answer more glaring
than the one to this question. The well
publicised Zimbabwean
multi-millionaire thugs have never stopped looting.
They still do. Like a
snowball. I imagine sometimes it even scares them how
they got to own such
huge amounts of wealth. They get money nightmares not
because they are in
want but because it is so menacingly plentiful they
couldn't sleep still.
Imagine winning the lottery everyday! Imagine getting
a few more diamonds
everyday!
These dishonest men and women in high places still loot at an
ever
accelerating pace. Especially now that the Government of National Unity
has
temporarily diverted the people's once upon a time shimmering anger
shielding them out of the spotlight. And especially that the once feared
leaders of opposition whose words and acts used to induce genuine
trepidation among the Zanu-PF rank and file have now been tamed into
contented, cuddly puppies ever groomed and paraded for playful, smiley photo
shoots with their new found minders. What sickening dereliction of
mandates.
The combined worth of Zimbabwe's known mercenaries and others
not named
could easily bail our country out of its present bankruptcy. These
are
Zimbabwe's economic black holes, all conquering, all engulfing and never
to
be satiated. Whatever effort you may make to better yourself and family
indirectly makes more wealth for them as long as you are in Zimbabwe and as
long as you are linked to the system by means of remittances from the
Diaspora.
This is why you will never stop sending money to Zimbabwe.
It ultimately
benefits the few well connected elite who own the grocery
stores and who are
in the habit of distorting the exchange rates for the
locally used foreign
moneys. The sharply dressed people you will never see
break a sweat. You do
it on their behalf wherever you are in the world. We
all work for them. The
system has evolved to support this state of affairs,
a huge inescapable
circle of poverty for the general Zimbabwean citizen
feeding into and
sustaining a much smaller circle of opulence for the nexus
of cronies and
their acquaintances.
We demand that the rich among us
be forced to openly account for all the
wealth in their possession without
reservation, favour or immunity, for by
George, it is all ill-gotten wealth
which is rightfully ours. They continue
to take advantage of us all using
their positions of authority to masquerade
as guarantors of our ever
threatened sovereignty. They deserve to be named,
shamed and stripped of all
the wealth they illegally hold in their custody
for the benefit of all
citizens.
We ask that Zimbabweans open their eyes to the truth that all
who have
suffered for so long, working hard on a daily basis for very little
have in
fact contributed immensely to the wealth of the wealthy among them.
These
newly built hill top mansions, the expensive gas-guzzling vehicles and
these
vulgar, whisky filled lifestyles have only been made possible by the
efforts
of all poor citizens who for years have seemingly toiled for
nothing. For
how else could mere individuals achieve such feats against the
prevailing
gust of odds?
We should bring to an end the culture of
such self defeating mutterings as,
'Wakaona mota yake here? Ende akapenga,
anechibhanzi, ndewekuBorrowdale
Brooke, haaite, ende kuZimbabwe kune vanhu
vanemari'. (Did you see his car?
That one really has money; he lives in
Borrowdale Brooke. In Zimbabwe there
are people with loads of
money.)
This is tantamount to admiring and praising the way your sister
got
violated, excuse me. For it's all your money! Your poor brother's money!
Your poor parents' eroded pensions! It's the money you will never stop
sending home. This is how it all ultimately balances out. All this wealth,
like energy, could not have been created from nothing.
Our mandated
leaders must heed that failure to candidly audit, name, and
prosecute and
failure to take unpopular corrective action for fear of
causing offence in
their newly found cohabitation will only serve to condemn
STERP to the
bottom shelf where ESAP, Vision 2020 and other loud eloquent
nonentities
have since been granted permanent residency.
Let the truth be told.