http://www.theindependent.co.zw/
Thursday, 05 August 2010
22:31
A BIZARRE incident, in which an MDC-M rapporteur was arrested for
allegedly
exposing his private parts to a Zanu PF official, has ground the
constitutional outreach process to a halt in some parts of
Manicaland.
Members of the MDC-T and MDC-M constitutional parliamentary
committee
(Copac) stopped working on Wednesday in protest at the arrest of
rapporteur
Kudakwashe Munengiwa on Monday.
Munengiwa reportedly exposed
himself after an altercation with Zanu-PF
supporters that had started in
Chimanimani and continued at the Mutare
offices of Manicaland provincial
administrator Fungai Mbetsa.
Outreach teams surrender equipment at the end of
each day and it was during
this routine exercise that Munengiwa, angry that
the Zanu PF officials had
continued harassing him, chose to prove his
manhood by pulling down his
zipper.
The row centres on Munengiwa and a
team leader from Zanu PF, Senator Oriah
Kabayanjiri.
Munengiwa has since
been given US$20 bail and his case will resume next
week.
Members of both
MDC formations in Manicaland said they would go back to work
only after the
withdrawal of charges by Kabayanjiri against the rapporteur.
According to a
source the dispute between Munengiwa and Kabayanjiri started
after some Zanu
PF supporters allegedly intimidated the public at a meeting
by putting Zanu
PF themes in a prayer.
"We were having a meeting at Magistrates' Hall in
Chimanimani when some Zanu
PF war veterans led by Senator Oriah Kabayanjiri
made intimidating prayers
to start the meeting."
"In a normal situation
it is members of the outreach teams that are supposed
to lead the prayers.
Instead some feared Zanu PF supporters took over and
started saying some of
their party's thematic points in a prayer," said the
source.
The source
added that Zanu PF supporters started questioning Munengiwa as to
why he was
documenting what they were doing and he is alleged to have said
that it was
job as a rapporteur and he wasn't supposed to be censored by
anyone.
MDC-T Co-chairman of Copac Douglas Mwonzora said he was aware of
the
"unpleasant interaction".
Mwonzora said: "As a result of the
unpleasant interaction Honourable
Kabayanjiri has filed a criminal
complaint. The other team members feel that
this is an abuse of state
machinery to set personal differences. For that
reason, they have refused to
attend meetings until the rapporteur is
released."
"Anything offensive
must be avoided by the respondents," he said. "Offensive
prayers must be
stopped. I understand that there are some offensive and
provocative prayers
being made by some people during the outreach meetings.
It was decided that
prayers must be made by the outreach teams."
Mwonzora said the clash between
Kabayanjiri and Munengiwa was more of a
clash of personalities which really
did not need the involvement of the
police.
"Following my conversation
with Honourable (Paul) Mangwana I was made to
understand that Honourable
Kabayanjiri was contemplating withdrawal of
charges. The whole issue must be
resolved," he said.
However, Zanu PF Co-chairman of Copac Paul Mangwana said
his party was not
going to tolerate a violation of Zimbabwean laws and the
matter was going to
be referred to the principals (President Robert Mugabe,
Prime Minister
Morgan Tsvangirai and Deputy Minister Arthur
Mutambara).
"I am aware of the situation," he said. "Zimbabwe is a
law-abiding country.
The rapporteur is alleged to have committed a crime of
public indecency.
"We cannot sacrifice the constitution because of an
indecent act committed
by someone. As Zanu PF we will not tolerate public
indecency. This is a
challenge that the MDC has to resolve among its
members. We will proceed by
referring the matter to the
principals."
MDC-T spokesperson Nelson Chamisa said he was aware of the
protest by the
MPs and said his party was going to look into it.
"The
constitution-making process is supposed to be a process of national
healing
and catharsis but quite to the contrary some cases of
constitution-making
process are opening fresh wounds and fresh commissions
of acts of violence.
This situation has to be dealt with immediately," said
Chamisa.
He said
their biggest challenge was dealing with Zanu PF's insecurity which
resulted
in a number of isolated cases of violence taking place mainly in
the rural
areas.
Wongai Zhangazha
http://www.theindependent.co.zw/
Thursday, 05 August 2010 22:27
GOVERNMENT
ministers who disclose information to the media on cabinet
meetings and
proceedings will be arrested together with offending
journalists in a move
calculated to stem "damaging leaks", the Zimbabwe
Independent can
reveal.
Media, Information and Publicity minister Webster Shamu
yesterday said that
even though leaking cabinet details was illegal,
ministers were using
information obtained from cabinet discussions to
further their political
agendas. He said some of his colleagues even distort
or misinterpret cabinet
information in a bid to promote their narrow party
political interests.
Cabinet resolved last week to arrest ministers
who leak classified
information to journalists.
This came amid
growing concern in cabinet about the persistent leakages of
information to
the press. The issue was discussed by ministers last week on
Wednesday and a
resolution was taken to unleash the police on those
ministers who leak
classified information to journalists. The journalists
themselves are also
under threat due to this decision.
Shamu said police would
investigate and arrest any minister or journalist
involved in the
leakages.
"As cabinet ministers we take an oath of office and if
information is
divulged then you should be answerable," Shamu said. "If any
information is
divulged, the official will be investigated and appropriate
action taken
against both the official and journalist."
This was
not the first time Shamu has issued such a warning. Last year he
threatened
that government would arrest ministers and journalists over
cabinet leaks.
The issue of leaks has been discussed on several occasions by
cabinet.
However, sources said last week government took a firm
decision to deal with
the issue "once and for all". This left ministers and
journalists worried
about their contacts and communication.
The
main law under which ministers and journalists involved in leaks could
be
dealt with is the Official Secrets Act, a relic of colonial rule.
Sections
of the Act prohibit communication of "information, code, password,
model,
article and documents" to the public by government officials.
Anyone
found in breach of this law would be liable to a jail sentence of up
to 20
years or level 14 fine, which is the highest possible fine, or
both.
So far no journalist since Independence in 1980 has been
arrested under the
Official Secrets Act. Journalists have mainly been
arrested under the Access
to Information and Protection of Privacy Act and
the Public Order and
Security Act. Another law which is often applied
against journalists is the
Criminal Law (Codification and Reform)
Act.
Ministers decided to take a firm stance on the leaking of
cabinet files last
week after agreeing that such disclosures were damaging
to government.
The consensus to come down hard on the illegal passing on
of information
followed what Shamu said were press reports on how cabinet
had agreed to
stop radio jingles that Prime Minister Morgan Tsvangirai
deemed offensive
and a threat to the cohesion of the inclusive government.
The reports mainly
quoting MDC ministers indicated that cabinet had taken a
decision to stop
the jingles, although Zanu PF officials and the
state-controlled media
disputed this.
It is understood the issue
last week exploded after Zanu PF ministers had
accused Tsvangirai's team of
leaking cabinet deliberations on the jingles to
the
press.
However, MDC-T ministers were said to have pointed out that
state-controlled
newspapers were always full of leaked cabinet stories,
particularly those
that appeared to advance Zanu PF's political agenda,
while undermining
Tsvangirai and his party.
During the heated
debate on leakages, ministers from the three parties
traded accusations and
counter-accusations about who was leaking information
to the media. In the
end they however agreed that whoever was leaking it
must stop and those who
persist in leaking cabinet information must be
arrested and
prosecuted.
Following this development, the Independent this week
heard that cabinet
ministers, particularly those from the MDC factions,
feared they could be
targeted over the issue. "We know that Zanu PF, through
its agencies, has
been snooping on our telephone conversations in the hope
of catching us in
the act," said an MDC minister. "In effect, it is Zanu PF
that controls the
police and I don't see a situation where a Zanu PF cabinet
minister will be
arrested for leaking information. The police, as usual,
will be ordered to
go for us," he said.
The minister said the MDC
agreed that leaks must stop, but there must not be
selective snooping on
ministers' communications and arrest of offenders. The
minister said anyone
who breached the law must be held to account regardless
of his or her
political affiliation.
Shamu said leaking of cabinet information was
unlawful and damaging. "It is
not good," said Shamu. "To leak information
means you have a hidden agenda
and in some cases we have noted that the
leaked information is distorted."
The minister said his colleagues,
like all other government officials, were
aware of the law and should comply
and avoid continued leaking of details of
cabinet proceedings. Shamu said he
would soon be meeting all media houses
and editors to discuss the issue of
reporting cabinet deliberations.
The minister said the Secretary to
the President and Cabinet has a duty to
communicate the Official Secrets Act
to ministers when they assume office.
Leonard Makombe
http://www.theindependent.co.zw/
Thursday, 05 August 2010
22:24
DESPITE spirited efforts by President Robert Mugabe and his allies
to remove
Zimbabwe from the agenda of the forthcoming Sadc summit in
Windhoek, the
regional bloc's executive secretary Tomaz Salomao has said the
issue would
be discussed.
Salomao this week told an international
radio station that the Zimbabwe
issue would be discussed under the review of
the political situation in the
region. He said the Sadc facilitator on the
Zimbabwe crisis, South African
President Jacob Zuma, would give a report on
the country's political
situation and that would bring up the issue for
discussion.
Another senior Sadc secretariat official based at the
headquarters in
Gaborone, Botswana, also told the Independent last night
that Zimbabwe would
"come up despite all these diplomatic efforts to
suppress the issue".
"We are aware that some officials in Harare are
lobbying to have Zimbabwe
not formally discussed at the summit but the way
the situation is going I
think it will come up despite sustained efforts to
suppress it," the Sadc
official said.
Zuma has been stepping up
pressure on Mugabe, Prime Minister Morgan
Tsvangirai and Deputy Prime
Minister Arthur Mutambara to resolve outstanding
issues under the Global
Political Agreement (GPA) ahead of the Sadc summit
in Windhoek on August
16/17.
Zuma on Monday dispatched his special envoy Mac Maharaj back
to Harare to
push for a resolution of the remaining issues. Maharaj spent
most of last
week in Harare engaged on the issue.
GPA principals
recently whittled down the number of outstanding issues from
more than 10 to
merely three, the appointments of Reserve Bank governor
Gideon Gono and
Attorney-General Johannes Tomana, as well as the swearing-in
of a deputy
Minister of Agriculture.
The issue of provincial governors, one of
the most bitterly contested GPA
matters, has assumed a new dimension after
the expiry of the governors'
tenures at the end of July. Although the issue
has not been cleared, there
was agreement on the formula of resolving it.
Mugabe has been balking on
implementation of this issue.
While
Zuma has been pulling out all the stops to crack the Zimbabwe deadlock
before the Sadc summit, Mugabe and his officials have been trying to ensure
Zimbabwe is not discussed in Windhoek.
Mugabe usually resists
having Zimbabwe on the agenda of such meetings, while
Tsvangirai always
insists on it being discussed. A similar battle erupted
last year just
before the Sadc summit in Kinshasa on September 7-8.
However, Salomao
said Zimbabwe would be discussed.
"We are going to have a review of
the political situation in the region,"
Salomao said in a recorded interview
with VOA. Asked if Zimbabwe would fall
into that category and debate, he
said "yes".
The Zimbabwe situation is likely to be debated in the
same breath as the
cases of Lesotho and Madagascar. The DRC situation is
also one of the likely
agenda items. Diplomatic sources last week told the
Independent Mugabe was
banking on the incoming Sadc chair, Namibian
President Hifikepunye Pohamba
and outgoing chair, DRC President Joseph
Kabila to prevent a discussion on
Zimbabwe.
However, sources said
this was going to be difficult because Zuma as the
facilitator on Zimbawe
would present a report of the Sadc troika on the
organ on politics, defence
and security to the summit. This would open the
debate on Zimbabwe. The
troika is chaired by Mozambican President Armando
Guebuza who after taking
over in Kinshasa last year convened two meetings in
Maputo to discuss
Zimbabwe and other issues.
The Sadc organ on politics, defence and
security met in Maputo on November 5
last year to discuss Zimbabwe. The
double troika of Sadc heads of state and
government and the organ on
politics, defence and security also met in
Maputo on January 14 to discuss
Madagascar and Zimbabwe.
Ministers connected to the directorate of
the organ on politics, defence and
security have been meeting since Tuesday
in Maputo to discuss the regional
situation and prepare for the Sadc summit.
Zimbabwe was one of the issues up
for discussion. - Staff Writer.
http://www.theindependent.co.zw/
Thursday, 05 August 2010
22:16
THE Ministry of State Enterprises and Parastatals, in a joint
operation with
the Zimbabwe Revenue Authority (Zimra), is investigating
reports that some
parastatals have two payrolls which they are using to
siphon public funds
amid a growing furore over the staggering salaries being
paid to bosses of
the bankrupt state companies.
This comes in the
midst of other reports that Zimra is greatly concerned
about the number of
state enterprises abusing duty-free certificate
facilities to facilitate
shady and corrupt import deals. The facilities are
not available to state
companies although some bosses of these companies, in
collusion with senior
government officials, unlawfully use them to import
goods free of
duty.
Duty-free certificates are issued by permanent secretaries to ensure
goods
imported for government consumption do not attract duty. However, some
officials and their cronies have been abusing these facilities to evade
tax.
Information obtained this week shows that Zimra officials are also
worried
about state enterprises and private companies which are not meeting
their
tax obligations. Zimra is also demanding that all companies and
individuals
must comply with tax laws, including Income Tax, Value Added
Tax,
Pay-As-You-Earn and Customs and Excise duties.
The issue of double
payrolls and bosses of state enterprises paying
themselves staggering
salaries - ranging between US$11 000 to US$15 000 a
month - has caused alarm
in government circles where civil servants and even
ministers earn paltry
salaries. Civil servants earn between $US150 and
US$250 a month. Ministers
earn slightly above this range.
In a bid to address these issues, State
Enterprises and Parastatals minister
Gorden Moyo yesterday met Zimra
officials.
"I had a meeting with Zimra officials to discuss these issues,"
Moyo said.
"It has come to our attention that there are some parastatals
which have two
payrolls. As government we think it is only proper for Zimra
to check if
these people who are being paid double salaries or are
manipulating double
payrolls for personal benefit are paying tax. We agree
that Zimra should
investigate this and ensure tax laws are applied
rigorously," Moyo said.
"We are targeting CEOs and senior management of
parastatals because they are
the ones who are benefiting from this system.
These officials have also
awarded themselves salaries that were not approved
by line ministers. So we
think in all these issues there could be a case for
tax evasion."
Zimra commissioner for operations Tichaona Chiradza yesterday
confirmed that
senior officials from the tax collecting authority had met
Moyo and were
probing issues raised at the meeting, including the issue of
double payrolls
in the context of taxation and other tax matters.
"We had
a meeting with the minister this (yesterday) afternoon and we
discussed the
issue of compliance with tax laws. We discussed various issues
and we are
going to check if companies and individuals that we are looking
into are
paying tax to the state," Chiradza said.
"In this regard, we appeal to anyone
with information on these tax issues to
come forward and help us. We can pay
10% of the monies collected to the
people who give us information. So
people must help us."
Chiradza said Zimra was worried that certain people
were abusing duty free
certificates to import goods without paying duty.
"Those certificates are
issued by permanent secretaries to cover goods that
are exclusively imported
for government use. But there are some people
taking advantage of these
facilities."
The Zimra official said the
duty-free certificates were "not available to
state enterprises" but to
government alone. The same applies to paying
tollgate fees. Chiradza said
there were some people at state enterprises who
evade paying toll-gate fees
claiming their vehicles belonged to the
government.
"Government vehicles
are clearly marked and usually they have white
registration numbers," he
said. "Some people who work for parastatals
sometimes abuse this system and
evade paying tollgate feels claiming to be
driving government cars. Vehicles
belonging to state enterprises and
parastatals are required to pay when they
pass through our road tollgate
points. The exemption from paying tollgate
fees only extends to vehicles
belonging to government."
Moyo also met
officials from the Comptroller and Auditor-General's office on
Tuesday to
deal with issues of compliance with the law in terms of financial
reporting
and statements, observance of government directives and the
relationship
between his ministry and comptroller and auditor-general's
office. The
meeting also looked into the problems the comptroller and
auditor-general's
office was facing.
On the same day Moyo also met Reserve Bank governor Gideon
Gono to discuss
the state of parastatals and turnaround strategies. He also
had meetings
with the ambassadors of Australia and Sweden which focused on
parastatal
reforms, corporate governance, legislative reviews, restructuring
and the
inter-parastatal debt.
Officials from the comptroller and
auditor-general's office expressed
concerns about how parastatals were being
run, especially with regard to
compliance with auditing
requirements.
They said they faced serious problems in doing their job,
including
corporate governance matters, delays in appointing boards of
parastatals,
poor composition of the boards which lack gender and
professional balance,
ineffective audit committees and lack of performance
benchmarks for the
boards.
They indicated that systems were not working
properly and as a result there
were situations where parastatal board
members were allowed to determine
their own remunerations and hence the
payment of board members like
employees in some cases. They recommended that
clear contracts for each
board member must be drawn and agreed upon.
The
officials from the comptroller and auditor-general's office also said
there
was a lack of rationalisation of allowances, conflict of interest
among some
board members and lack of independent-minded board members, as
well as
clashes between the boards and management of parastatals or the
ministry and
the boards and management.
Besides this, there were also problems of late
submission of accounts and
lack of audited accounts. Parastatals were also
failing to table their audit
reports before parliament, they said.
Due to
the weakening of internal control systems, the officials further
noted that
here were too many leakages, including fraud and theft.
Cabinet recently
approved a raft of proposals designed to pave the way for
sweeping reforms
at the mostly dysfunctional public entities which are
either technically
insolvent or facing collapse. There are 76 state
enterprises in
Zimbabwe.
Some of the approved issues related to the board of directors,
appointment
of substantive chief executive officers, board fees and sitting
allowances,
remuneration of CEOs, financial reporting and annual general
meetings, and
staff complements and restructuring. The need for state
companies to adhere
to procedures when entering into joint ventures and
strategic partnerships
was also approved.
http://www.theindependent.co.zw/
Thursday, 05 August 2010 22:15
MDC-T
Matabeleland North province has asked party leader Prime Minister
Morgan
Tsvangirai to continue as president until he succeeds in removing
President
Robert Mugabe from power, ahead of the party’s elective congress
due next
year.
The resolution was passed at a provincial council meeting held at
Edmund
Davis Hall in Hwange on Saturday.
The prime minister has led the
party since its formation in 1999 and new
leadership is expected to be
elected next year. Tsvangirai’s second term as
MDC-T president is due to
lapse at the end of the year.
MDC-T insiders who attended the meeting said
Binga district’s John Sikabotu
moved the motion that Tsvangirai should not
step down as party leader before
he wins an election against Mugabe, 86,
possibly next year.
“All the 13 districts in Matabeleland North were
unanimous that Tsvangirai
should lead MDC-T until he rules the country,”
said a Matabeleland North
provincial council member.
“We can’t talk of
real change if Mugabe is still in power. Therefore
everyone in Matabeleland
North agreed that Tsvangirai’s two terms will end
once he goes to State
House.”
Tsvangirai is on a tour of provinces in a move party insiders say is
a
strategy to bolster his chances of remaining MDC-T president.
Since its
inception, MDC-T has struggled to remove Mugabe from power.
International
and local election observers and the international community
have accused
Mugabe of rigging successive elections since 2000.
Tsvangirai’s vote of
confidence came as the MDC-T president tasked party
national chairman
Lovemore Moyo to investigate divisions which are
bedevilling the party in
its Matabeleland North stronghold.
Sources said Tsvangirai assigned Lovemore
Moyo, Hwange West MP Gift Mabhena,
and Hwange East legislator Tose Sansole
to investigate and give the MDC-T
standing committee a comprehensive report
on the divisions. The standing
committee is responsible for the MDC
day-to-day administration and is
chaired by Tsvangirai. Moyo was not at the
meeting as he was in Switzerland.
Tsvangirai met the Matabeleland North
provincial executive before addressing
supporters in Hwange last weekend.
Authoritative party sources said
Tsvangirai heard allegations that some
MDC-T officials had remained aligned
to Zanu PF central committee member
Jonathan Moyo, resulting in friction.
Moyo won the Tsholotsho North seat as
an independent candidate with support
from the MDC-T before he rejoined Zanu
PF.
Problems in the troubled province date back to 2008 when MDC-T provincial
council members Sengezo Tshabangu and Lwazi Sibanda campaigned for Moyo in
parliamentary polls. Tshabangu is the MDC-T Matabeleland North chairman
while businesswoman Sibanda is the Tsholotsho North district chairperson.
Both of them command support in the constituency.
During last week’s
meeting, the prime minister ordered a report into fights
involving party
officials in Tsholotsho, according to sources. Water
Resources Minister
Samuel Sipepa Nkomo is accused of advancing his wife,
Rosemary, to be a
candidate in the next polls.
Sources said Sipepa Nkomo has the support of
provincial council member
Clever Gumede. Sibanda is also said to be eyeing
the seat, according to the
same sources.
Sipepa Nkomo denied that he was
campaigning for his wife.
“I was not at the meeting in Hwange because I was
in Harare. Those who are
accusing my wife of harbouring political ambitions
are lying,” he said.
Sibanda and Gumede, sources said, exchanged harsh words
during the
provincial council meeting, after which Tsvangirai ordered them
to build
bridges.
The MDC-T did not field a candidate in Tsholotsho North
during the
harmonised 2008 elections but rallied behind Moyo, only for the
former
Information minister to rejoin President Robert Mugabe’s
party.
Publicly, Moyo has denied working with MDC-T to secure his seat in the
House
of Assembly.
MDC-T spokesman Nelson Chamisa confirmed that a
provincial council meeting
was held but claimed that the gathering focused
on solving issues in party
structures.
“We are having provincial council
meetings to audit party structures,” he
said.
“We have been to Manicaland
and this week we are going to Matabeleland
South, so there was nothing
special about the Matabeleland North provincial
council.”
Brian
Chitemba
http://www.theindependent.co.zw/
Thursday, 05 August 2010 22:14
THREE
expelled MDC-M MPs have taken President Robert Mugabe and the Zimbabwe
Electoral Commission (ZEC) to court for delaying calling for by-elections in
vacant constituencies.
Abdenico Bhebhe, Njabuliso Mguni and Norman Mpofu
were kicked out of
parliament in August last year after being dismissed from
their party for
aligning with a rival formation led by Prime Minister Morgan
Tsvangirai.
They now want the High Court to force Mugabe and ZEC to call for
the
by-elections. Bhebhe has indicated that he wants to stand as an
independent
candidate should a by-election be called.
The MPs
have cited ZEC chairman, Justice Simpson Mutambanengwe as the first
respondent, ZEC as the second respondent and Mugabe as the third respondent
in papers filed on Monday.
"It appears the 1st, 2nd and 3rd
respondents are not interested in ensuring
that the vacancy is filled. It
appears that the 3rd respondent (Mugabe),
despite being informed that a
vacancy has arisen in the membership of
parliament in the House of Assembly
seat in Nkayi South Constituency, has
not acted in accordance with the
provisions of Section 39 (1) as read with
subsection (2)(a) of the
Electoral Act (chapter 2:13)," reads the MPs'
court
application.
Bhebhe was Nkayi South MP before the expulsion, while
Mguni was MP for
Lupane East and Mpofu represented Bulilima
East.
In their application through Phulu and Ncube legal
practitioners, the MPs
said: "It is quite an anathema to democracy and quite
unconscionable that in
a representative democracy, a constituency can remain
unrepresented in
parliament for more than a year," the MPs
charged.
"As the 2nd respondent appears to be in no hurry to call for
an election in
the said constituency, I think in all fairness and in
consonance with the
dictates of democratic practices, I seek the
intervention of the court to
compel the 1st respondent to comply with the
provisions of Section 39 and
call for a by-election" reads the
application.
The respondents had 10 days since Monday to oppose the
application. The MPs
say Mugabe should have ordered elections 14 days after
being notified of a
vacancy by parliament.
Coalition government
partners-Zanu PF, MDC-T and MDC-M - have agreed to an
arrangement that puts
a moratorium on by-elections in a bid to save their
shaky administration
from collapsing under the weight of electoral contests.
Apart from
Nkayi South, Lupane East and Bulilima East, close to 20 seats in
the House
of Assembly and the Senate have fallen vacant following a series
of deaths
since 2008.
Nqobile Bhebhe
http://www.theindependent.co.zw/
Thursday, 05 August 2010
22:07
RECEIVING neither counselling nor apologies, victims of Gukurahundi
are
still living with the trauma of the 1980s military-led ethnic killings,
a
report on transitional justice released by a coalition of human rights
groups has noted.
The report, compiled by the Zimbabwe Human Rights NGO
Forum after conducting
interviews in 51 constituencies, narrates how the
wounds of Gukurahundi are
kept fresh by President Robert Mugabe’s refusal to
publicly apologise for
deploying a military brigade that killed civilians
including pregnant women
and children in Matabeleland.
The Human Rights
NGO Forum report compiled this year points out that
participants in the
meeting that took place in Bulilima were concerned about
the aftermath of
Gukurahundi.
“The victims of Gukurahundi need to be rehabilitated. Some may
need
counselling because they have not been able to deal with the trauma.
Where
possible, the perpetrators must be made to pay for the damages and the
pain
they caused,’’ was one of the recommendations made by participants in
Bulilima.
According to the report, titled “Taking Transitional Justice to
the People”,
the “arrogance of the leadership in failing to acknowledge past
wrongs came
out as a major obstacle to reconciliation’’.
Minister of
State Enterprises and Parastatals Gorden Moyo launched the
report in
Bulawayo last Friday.
Over 20 000 people were killed in the military
campaign, which was launched
on the pretext of pursuing dissidents,
according to figures by the Catholic
Commission on Justice and Peace.
The
Zimbabwe Human Rights NGO Forum sets out the experiences of its members
and
associates who conducted outreach meetings as part of its
community-based
programme to take the concept of transitional justice to the
grassroots.
“Truth recovery and truth disclosure to redress the human
rights abuses of
the past and in so doing foster true national
reconciliation is the dominant
plea of all the participants,” read the
report.
According to the report participants in Nkayi concurred that people
involved
in the Gukurahundi massacres should face justice. No-one has been
arrested
for the killings. Some of the campaign’s leading figures such as
Perrence
Shiri have been promoted and now occupy command positions in the
military.
“President Robert Mugabe should come to the people and apologise
for the
massacres that happened in Matabeleland,’’ the report quotes an
elderly male
participant as having demanded during a meeting in
Nkayi.
Participants stressed that there could be no reconciliation without an
element of truth recovery on Gukurahundi.
“There is no other way to
reconcile the region of Matabeleland with the rest
of the country if the
truth of what happened during the Gukurahundi is not
known,” the report
says.
“Even for an apology to be accepted, it must be clear what is being
apologised for.”
In Lupane, villagers said the current criminal justice
system was incapable
of delivering justice to victims.
“Most of the
officials staffed at the courts are steeped in partisan
politics to the
extent that it is difficult to expect them to be impartial,”
one participant
is quoted as saying in Lupane.
Added another participant: “The police and the
Central Intelligence
Organisation have become a law unto themselves.
Whatever they want to do to
whomever, they do without fear.”
Women and
youth groups in Chiredzi called for judicial reform to address
multi-faceted
transitional justice issues. “Chiredzi, as a multi-cultural
community has
suffered abuses from all angles — economic, cultural, tribal
and religious,”
the report says. “In that regard, the normal legal process
has no capacity
to address these problems.”
On reparations, participants in Chiredzi said
they were still feeling the
effect of Murambatsvina, a 2005 government
operation to destroy illegal
houses. The UN says Operation Murambatsvina
left over 700 000 people
homeless, forcing some to seek refuge in football
stadiums and open spaces
in the middle of winter.
“The society has
suffered greatly because of Murambatsvina. These cannot be
repaired in any
monetary way but the society expects sanitisation of the
environment and
revival of industry.”
Participants from Buhera Central demanded justice and
asked for perpetrators
to personally ask victims for
forgiveness.
Reconciliation means that the offender must seek his victims and
plead for
forgiveness after acknowledgement of the wrong
“Arresting
offenders is not enough. They must pay back what they looted and
repair what
they damaged. How can our hearts be cleansed?” the report
quotes an eldrely
man who spoke on behalf of the victims. “Will the
government compensate us
for our lost chickens so that we can forgive these
people?”
Nqobile Bhebhe
http://www.theindependent.co.zw/
Thursday, 05 August 2010
22:13
POLITICAL parties in the shaky inclusive government seem to be
expressing
divergent views on many subjects but a closer look clearly
indicates that
they are singing the same song when it comes to whether
Zimbabweans should
go to the polls next year.
Zanu PF's President Robert
Mugabe has spoken about the possibility of 2011
elections and both he and
MDC-T leader Morgan Tsvangirai have openly
encouraged their party members to
be ready for polling.
But the question on many minds is whether Zimbabwe is
ready to hold
elections next year with a host of electoral and political
reforms still not
in place before the nation is dragged into a
plebiscite.
The elections of March 2008 and the presidential run-off in June
2008 saw a
blood bath following a wave of inter-party violence.
There is
a fear that those who were behind the violence that rocked the
country could
repeat the clashes next year unless political reforms are put
in place.
Analysts say the political parties, who are signatories to the
Global
Political Agreement (GPA), Zanu PF, MDC-T and MDC, want the coalition
government to continue to maintain the status quo.
Deputy Prime Minister
Arthur Mutambara has led calls against 2011 elections,
arguing Zimbabwe has
no capacity to hold elections under the current
political environment until
electoral reforms are implemented. Under the
Electoral Bill, which is still
not law, election results would have to be
announced within five days of the
polls and an electronic voters' roll would
be put in place, among other
sweeping changes set to transform the country's
electoral system.
MDC-T
and MDC are hopeful that reforms would bring transparency to the
system that
has been flawed in previous polls. Mugabe is alleged to have
manipulated the
elections by appointing his supporters to the Zimbabwe
Electoral Commission,
alleged changing of ballot papers and unleashing
political violence on
opponents.
ZEC chairperson Justice Simpson Mutambanengwe declined to comment
but
political parties insist elections will take place.
MDC-T spokesman
Nelson Chamisa described elections in 2011 as inevitable as
Christmas on a
Christian calendar. He believes elections are a platform for
legitimisation
of a government that will replace the present setup.
"The party is in a
permanent state not only for elections but real change,"
he said. "There is
no real change in Zimbabwe now until fresh free and fair
elections. The
solution is to deal with the electoral regime; implement the
necessary
reforms with a sense of urgency."
Chamisa was optimistic the electoral
reforms would be in place before the
proclamation of election dates by
Mugabe but was cautious about the full
implementation of the Electoral Bill
once it becomes an Act. He said apart
from having a new voters roll, ZEC
should focus on educating the population
about the importance of
participating in elections while key government
institutions must be
reformed.
"We want rule of law; our public broadcaster, ZBCtv, should reflect
views of
all political parties. Mono-broadcasting regimes that support Zanu
PF and
ignore other parties must come to an end," said Chamisa.
MDC-T
claims that its supporters were maimed and killed by Zanu PF in the
run-up
to the June 2008 presidential run-off where Mugabe declared himself
the
winner. Political pundits say it is worrying that the brains behind 2008
violence were not accountable for their actions.
On the other hand Zanu
PF believes elections will be held in 2011 after a
referendum on a new
constitution. Zimbabwe cannot, political observers say,
afford to sponsor a
referendum and elections in the same year while others
argue that local
elections have been sponsored by organisations like the
United Nations
Development Programme.
Zanu PF secretary for information and publicity Rugare
Gumbo noted that the
inclusive government's lifespan would expire two years
after its formation -
February 2009 - after which Zimbabwe should go for
elections. He said once
the constitution is in place, then elections dates
would be proclaimed by
Mugabe.
"Elections are coming and we are obviously
getting ready," said the Zanu PF
spokesman. Asked if his party would accept
the results, Gumbo said they
would respect the will of
Zimbabweans.
Mugabe withheld the presidential election results in 2008 after
losing to
Tsvangirai and there are fears that history may repeat
itself.
While it is feared among his opponents that Mugabe would refuse to
relinquish power in the event he loses the polls, Mutambara has indicated on
several occasions that he does not want elections.
This time Mutambara
says there is no reason to rush for elections citing a
shortage of money and
need to implement critical reforms.
Other political parties see Mutambara's
sentiments as an excuse not to
participate in elections for fear of
losing.
Zapu spokesman Methuseli Moyo lambasted the parties to the GPA for
not being
open about elections next year and efforts to prolong the
makeshift
government.
"Zapu wants elections even now. All other parties
who dilly-dally on
elections are just giving excuses. Some talk of
outstanding issues but
everyone has grievances; as Zapu we have issues like
Gukurahundi and
properties that were seized by Zanu PF," he said.
"We
must hold elections so that we solve the outstanding issues."
The slow pace
of democratic reforms and what the MDC-T says is selective
application of
the law are some of the issues affecting the coalition
government's
progress.
Brian Chitemba
http://www.theindependent.co.zw/
Thursday, 05 August 2010
22:06
LAST week, Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono
removed
statutory reserves for banks in his mid-term monetary policy review
statement.
The now not so visible governor said the removal of statutory
reserves was
meant to ensure improved liquidity and low interest
rates.
However, analysts have expressed different opinions on the latest move
with
some saying while it was welcome, the unlocked funds would not
translate
into meaningful activity on the market. They also argue that the
funds would
have very little or no impact on interest rates.
Statutory
reserve ratio for banks is defined as a percentage of a bank's
deposit
holdings that must be preserved by the Reserve Bank as a form of
security.
According to the monetary policy statement Zimbabwean banks
were required to
lodge a cumulative 5% of both offshore and local deposits
as statutory
reserves. This money is sometimes used as a tool to regulate
liquidity.
Players in the industry asked if the removal of statutory reserves
for banks
will result in the injection of millions of dollars onto the
market. Will
interest rates go down? Can liquidity and banks' lending
capacity improve?
Will the top four banks - CBZ, Standard Charted Bank,
Stanbic and
Barclays -that hold 60% of the country's deposits lend for
productive
purposes now that they have access to the money?
As at May 31,
the depositor's base stood at US$1,8 billion, of which 60% of
these funds
were controlled by the four banks. US$1,1 billion was advanced
to various
sectors as loans.
By maintaining statutory reserves in an economy like
Zimbabwe, Gono may have
locked up funds that could have been used to
rejuvenate and expand the
economy.
Analysts said statutory reserves are
only appropriate in a hyperinflationary
environment where money supply would
be rising at very astronomical levels.
Farayi Dyirakumunda, an executive
director of African Investment Markets,
told the Zimbabwe Independent on
Wednesday that statutory reserves were
among the monetary policy tools
available to the Reserve Bank as they work
towards influencing interest
rates and availability of credit in the
economy.
"The reserve ratio has a
bearing on money supply, therefore the recent moves
by the Reserve Bank to
cut the reserve ratio to zero percent will result in
a corresponding
increase in the monetary base," he said.
He said in economic terms, money
supply was influenced by the monetary base
and money multiplier so the
latest policy was in theory positive in that it
enhanced the potential of
the banking system to create further transaction
deposits.
"If the
reserve ratio is raised, say in an inflationary environment, the
amount of
money available for lending is automatically reduced, effectively
slowing
down economic activity. Equally, a reduction in the reserve
requirement in
our current environment can potentially increase the amount
of money
available for lending and this has a simulative effect in the
economy," said
Dyirakumunda, who is also an economic analyst.
Dyirakumunda, however, said an
absence of statutory reserves will diminish
the central bank's lender of
last resort ability, suggesting the need to
recapitalise the RBZ for such
purposes.
"One of the reasons for statutory reserve requirements is to ensure
that
financial institutions are sufficiently liquid and capable of paying
claims
even in a calamitous situation," he said.
"The presence of
statutory reserves also enhances the perception of
stability for a nation's
banking industry. A zero percent reserve ratio
therefore necessitates a
prudent approach to lending by banks in the absence
of a lender of last
resort," Dyirakumunda said.
Analysing the recent monetary policy this week,
Stanbic Bank said: "The
lending capacity of banks is not likely to
immediately improve due to other
considerations, including the need to
comply with increased liquidity ratios
and Basle 2 requirements." Basle 2 is
an international business standard
that requires financial institutions to
maintain enough cash reserves to
cover risks incurred by
operations.
Economist David Mupamhadzi said Gono's latest move was
commendable from a
policy perspective and would release some liquidity into
the system.
"However its impact on interest rates and on the ability of the
financial
sector to meet the demands of industry will be minimal. There is
still need
to inject some life in the financial sector for it to be able to
adequately
support the turnaround efforts," Mupamhadzi told the Zimbabwe
Independent
this week.
Mupamhadzi said restoring the lender of last
resort's function at the apex
bank was crucial but should be accompanied by
fundamental reforms for the
bank to improve its credibility.
"The
recovery of the economy can only be sustained if it is supported by a
well
functioning financial sector. Confidence of investors in the financial
sector starts from how people perceive the central bank," he
said.
Interest rates at between 12% to 18% are said to be too high and
inconsistent with a dollarised economy.
"This adversely affects the
competitiveness of local companies, and the
demand for local goods in the
region and beyond. There is need for economic
players to shift their mind
set from the hyperinflationary era to the new
dispensation," Mupamhadzi
said.
Economist Brains Muchemwa said abolishing statutory reserves would
unlock
more funds for lending and lowering of interest rates under normal
circumstances. But because the central bank raised the liquid asset ratio to
20% from 10%, little funds would be channelled towards lending as banks will
need to keep more liquid assets on their balance sheets to meet this
requirement.
"The interest rate determination in Zimbabwe is closely
correlated with the
underlying economy-wide liquidity levels, credit risks
and indeed the
existing interest rates," Muchemwa said.
"Though high when
compared to inflation, mirroring these risks and lack of
sufficient market
and policy signalling instruments will add more
distortions in the
determination process, resulting in the high levels of
interest rates that
vary widely from one bank to another," said Muchemwa.
Enterprise Risk
Management Services Lead Consultant Sonny Mabheju told the
Independent that
the amounts unlocked by banks would depend on individual
banks' decisions on
issues like assessed risk in the market and other
factors normally
considered when making prudent lending decisions.
"Some banks may deem the
risk profile to be too high and other factors in
the business environment
not yet appropriate for them to significantly
change their lending
policies," Mabheju said.
"The impact on interest rates will, among other
factors, also depend on the
lending decisions and consequently the volume of
funds put on the market. If
the unlocked funds are insignificant, they will
not have much impact on
market liquidity and consequently the impact on
interest rates arising out
of these funds will be minimal," said
Mabheju.
He said the prevailing interest rate regime was a result of many
complex
forces at play in the market.
ve would place liquidity management
wholly on the shoulders of banks.
"Some banks have started implementing these
liquid assets measures well
after the central bank made them mandatory,"
said KSB.
Seeing that the Reserve Bank was no longer able to perform the
lender of
last resort function, some prudent banks have started keeping
larger amounts
of reserves (liquid assets) in their vaults of at least 20%,
up from 10%
during the Zimbabwe dollar era.
"This was because then banks
had an easy fall-back position through the
inter-bank market and as a last
resort, the central bank," said KSB.
Economic consultant Eric Bloch told the
Independent on Wednesday that the
abolition of statutory reserve obligations
would accord banks "somewhat"
increased liquidity, enabling some enhanced
levels of lending, thereby
benefiting under-capitalised business
enterprises.
"Engaging in a greater volume of lending will facilitate some
lowering of
interest rates, as lenders progressively benefit from the
economies of
scale," said Bloch.
Bloch however said the quantum of
statutory reserves fell far short of
market funding needs. He said, as a
result there would be ongoing
constraints on business' access to adequate
working capital, and the
increased lending volumes would not suffice to
bring about alignment of
interest rates with international norms.
He said
current interest rates were high and interest "should be aligned
with
international norms, but not exceeding the rate of inflation".
"This would
ensure greater stability of enterprise operating costs and,
therefore, of
selling prices, which would boost consumer demand and hence
stimulate
increased production," he said.
Paul Nyakazeya
http://www.theindependent.co.zw/
Thursday, 05 August 2010
21:01
THE Zimbabwe crisis, one of the most dominant political questions
on the
continent for close to a decade, is disappearing from the radar of
regional
and continental diplomacy as leaders focus more on pressing issues
such as
piracy and resurgent terrorism.
A delegation from
Zimbabwe civil society that travelled to the African Union
summit to lobby
for continental leaders to discuss Harare's political
stand-off went largely
ignored, underlying how attention on Zimbabwe has
faded.
The continent's
leaders discussed the International Criminal Court's
indictment of Sudan
President Hassan Ahmad Al Bashir and terrorism
activities that have spilled
over Somalia's borders into Uganda.
Analysts said the omission of Zimbabwe
from AU discussions was not
surprising, as African leaders rarely got
actively involved in internal
matters that did not include civil war.
The
analysts warned against too much expectation when the Southern African
Development Community (Sadc) meets for its annual summit this month. While
Zimbabwe's power-sharing problems would be on the table at the Sadc summit,
it was unlikely that regional leaders would bulldoze a compromise between
President Robert Mugabe and Prime Minister Morgan Tsvangirai.
Sadc
mandated then South African president Thabo Mbeki to facilitate
mediation
between political parties in Zimbabwe following disputed elections
in 2008.
Mbeki's intervention resulted in the signing of the Global
Political
Agreement (GPA) in September 2008, paving way for the formation of
the
coalition government five months later.
Sixteen months on and with Mbeki
having given way to Jacob Zuma to take over
as the Sadc facilitator, there
has been very little ground covered in terms
of implementing the GPA,
including democratic reforms critical to future
credible elections and
stability.
Fissures between Mugabe and Tsvangirai have continued growing at a
time when
Africa views Zimbabwe's problem as solved, leaving little hope
that a
lasting solution will come from the continent. The unilateral
re-deployment
of several diplomats by Mugabe last week deepened divisions
and mistrust
between the coalition government partners.
Outstanding
issues include: appointment of provincial governors,
appointments of the
Attorney-General and the Reserve Bank of Zimbabwe
governor, posting of
ambassadors and the lifting of travel and economic
sanctions imposed on
Mugabe and members of his inner circle by the United
States, the European
Union and Australia.
University of Zimbabwe political science professor, John
Makumbe, who was
part of the civic society lobby to Uganda admitted that
African leaders
showed no interest in taking up Zimbabwe's case at the AU
summit.
A civil society roundtable discussion and the screening of a
documentary on
Zimbabwe's ongoing rights abuses failed to excite interest at
the summit,
Makumbe, a sharp critic of Mugabe, said.
"We lobbied the AU
members at the ministerial level," said Makumbe. "We made
presentations to
the ministers, gave them DVDs and videos on the Zimbabwe
situation. It was
up to them to reach the Heads of State and Government on
the matter, but the
conclusion is that they are not even interested in the
Zimbabwe situation as
they did not put it on the agenda."
Ministers from member states make up the
Executive Council of AU and their
meeting at Speke Resort Munyonyo in
Kampala, where they drafted decisions
and declarations of the AU assembly
preceded the summit.
Makumbe said the AU's position was "understandable" as
it had instructed
Sadc to deal with the Zimbabwe crisis.
"Sadc has been
trying but failed," said Makumbe. "What they should do is to
hand over the
issue to AU which would then put together a team to try and
resolve the
Zimbabwe crisis. Should the AU fail, then they would refer the
issue to the
United Nations Security Council. However, at the moment, the AU
cannot take
the issue out of the hands of Sadc as it is still trying to
resolve the
matter."
Another political science lecturer at the University of Zimbabwe,
Simon
Badza, said the AU could have reached a conclusion that "the Zimbabwe
situation is now water under the bridge".
"The AU should not be seen as
rushing the political parties (Zanu PF and the
two formations of MDC) to
implement the GPA as it is seen as unAfrican to
push fellow leaders into
doing something," said Badza. "They (AU) have tried
to avoid pressing the
issue. They fear that if they do so, they may not move
and there may be
resistance to the pressure as some of the leaders are not
used to
pressure."
Badza added that the appointment of the country to the AU Peace
and Security
Council could be recognition of the progress made in restoring
peace in the
country.
"Instead of misleading by example, Zimbabwe would
behave better and inspire
others," Badza said. "This shows that Zimbabwe is
no longer a critical issue
as focus is now on Sudan, Somalia and
Madagascar."
Even at Sadc level, the apparition of the Zimbabwean crisis
which had hogged
regional meetings has receded and mostly vanished from
vigorous debate.
Going through the communiqués released by the regional bloc
in the last two
years shows a pattern of a raging fire slowly dying down and
the glow hardly
noticeable. In January last year, Sadc issued a communiqué
after an
extraordinary summit in South Africa literally ordering the
formation of the
inclusive government with the contentious Home Affairs
Ministry co-chaired.
Sadc also ordered the introduction of the Constitution
of Zimbabwe Amendment
19, which gave effect to the formation of the
inclusive government.
The regional bloc said the co-chairing of the Home
Affairs Ministry was to
be reviewed after six months by the parties with the
assistance of the
guarantors, Sadc, AU and the facilitator (at that time
Mbeki).
However, over a year later, Mbeki is gone and the ministry is still
co-chaired. A communiqué that followed a Sadc summit in Mozambique in
January showed that the bloc was happy with developments in
Zimbabwe.
"Summit also noted with appreciation the efforts of Sadc
Facilitator in
assisting Zimbabwe to fully implement the Global Political
Agreement (GPA)
and urged the parties to implement decisions made," read the
communiqué,
ignoring sticky issues still affecting the progress of the
coalition
government.
University of Zimbabwe economics history lecturer,
Kudakwashe Chitofiri,
said Zimbabwe's crisis could only be completely solved
if foreign mediation
remained in place.
"We have to establish the
motivation for the disappearance of Zimbabwe from
the radar," Chitofiri
said. "We still have a lot of outstanding issues and
these need a regional
body to conclude. I do not think that the country has
the internal capacity
to iron all the outstanding issues on its own."
Analysts say Zimbabwe would
only return to the spotlight if the coalition
government announced firm
plans for an election in 2011 as suggested by Zanu
PF and the
MDC-T.
Leonard Makombe
http://www.theindependent.co.zw/
Thursday, 05 August 2010 20:45
MINES
will not meaningfully contribute to corporate taxes owing to years of
economic decline, Chamber of Mines chief Victor Gapare has said. Gapare said
although mines should contribute a significant percentage to government’s
revenue, years of economic mismanagement and lack of investment in the
sector have shrunk the sector’s contribution to the fiscus.
This comes
after Finance minister Tendai Biti announced government would
impose new tax
measures for chrome miners and increase mining royalties for
precious
minerals.
Government is currently levying 15% corporate tax on net
profit generated by
miners as well as royalties ranging from 2% for base
metals to 10% for
diamonds.
Biti last month also proposed a 0,5
basis point increase on royalties for
minerals such as gold and silver,
saying the current revenue inflows from
mining tax and royalties by the
extractive industry was “unacceptable as it
was unpalatable”.
But
Gapare says government is not taking into consideration developments of
the
past decade in the sector.
He said: “Given the above mine project
life cycle, it is important to
understand the policy implications for
Zimbabwe given the economic
conditions of the last 10 years. One must
consider that virtually no new
capital went into the industry in the last 10
years save for the platinum
and diamond mines.”
The chamber
estimates that industry will require US$3 to 5 billion over the
next five
years in new capital.
“Over the last 18 months, assertions have been
made that the industry is not
contributing enough to the fiscus. Our view
has always been that the mining
industry’s contribution has to be taken in
the context of the economic
performance of the country as a whole. Virtually
all businesses are stressed
and seriously undercapitalised and in most cases
are operating between 20%
and 40% capacity utilisation. Under those
circumstances, it is unlikely that
the businesses will generate a lot of
corporate taxes,” Gapare added.
The gold sector, which traditionally
accounted for at least 50% of all
mining revenues, had virtually collapsed
in 2008.
Gapare highlighted how in 1999 Zimbabwe produced 27 tonnes
of gold and yet
in 2008 production came down to 3,5 tonnes.
Major
mining entities (outside gold) which formed the backbone of the mining
industry in the past included Bindura Nickel Corporation (BNC), Zimalloys,
Shabanie Mashaba (SMM) and Mhangura, among others have either been shut or
are in trouble.
All these mining companies fell “victim to the
vicious economic conditions
of the last 10 years in Zimbabwe and have
virtually closed shop”, he said.
Government is expecting US$1,75 billion by
year-end in revenue and
increasing taxes seems to be the only way to
generate the money in a country
with limited foreign direct
investment.
Gold production during this period fluctuated between
0,61 tonnes and 0,52
tonnes, while asbestos continued to be on a downward
trend.
Royalty applied to mining activity is the charge incurred by
companies for
exploiting mineral resources owned by the
state.
Chris Muronzi
http://www.theindependent.co.zw/
Thursday, 05 August 2010 20:43
ENCOURAGED by
the return of positive growth in the economy in 2009 — the
first year to
register a real GDP increase since 1998 — hopes have been high
that the
momentum of recovery would continue and possibly even gather pace
in 2010.
Anecdotal evidence, however, has supported the view that while the
tempo of
business activity undoubtedly picked up during the second half of
last year,
it has since subsided again.
Official confirmation that the economic upsurge
had indeed faltered somewhat
in the past six months is provided by figures
in the mid-year fiscal policy
review recently presented by the Minister of
Finance Tendai Biti. Overall
GDP growth for this year has been revised
downwards from the original
projection of 7% to 5,4% which, if achieved,
would be slightly less than the
revised estimate of 5,7% for 2009. Further,
the minister cautioned that
even this reduced figure could not be taken for
granted as a ‘business as
usual’ mentality would guarantee a further
downward revision.
Of the revised growth rate projections for the 10 major
sectors all but one
of them, that for agriculture, have been lowered, most
quite significantly.
The latter sector is now projected to increase its
contribution to GDP by
18,8% compared with the original projection of 10%
mainly as a result of an
over 67% rise in tobacco output supported by
marginal increases in the
volumes of maize and beef produced of 3% and 2%,
respectively.
The only other sector now expected to experience more than a 5%
rise in
output in 2010 is mining where the volume of production has been
revised
moderately downwards from the 40% growth originally projected to a
still
very respectable 31%.
Highly disappointing are the 1,8% contraction
now forecast for the output of
the crucial utilities sector, electricity,
gas and water; the only 1,5%
growth anticipated from both construction and
real estate; the 2% growth in
finance and insurance; and the 3% rise in the
contribution of transport and
communications. The much trumpeted boom in
tourism is now expected to turn
out to be just a 3.5% increase while the
manufacturing sector is seen as
experiencing modest real growth this year of
4,5%.
Beyond the fiscal review’s noting of a revision in forecast average
annual
inflation from 5,1% to 4,5%, neither the mid-year fiscal review nor
the just
released mid-term monetary policy review give a likely inflation
outcome by
year end. The former notes, however, that “Inflationary
pressures picked up
during the first half of 2010.” The monthly CPI shows
prices rising at an
average annual 2,3% over this period. While moderate,
there are signs of a
progressive upward trend. Although the first two
months of this year
recorded negative price changes the succeeding four
months have all shown
strong positive price rises. The reasons given for
this in the fiscal
review are domestic wage increases, higher utility
tariffs and the
strengthening of the rand against the US dollar. Further
domestic price
increases are considered likely to threaten the
competitiveness of local
goods in both the home and export markets.
The
statement avoids speculation on the implications for prices generally of
reduced imports arising from a likely further deterioration in the current
account position. The monetary policy statement cites a 47% rise in import
payments in the first six months due “mainly to increased imports of
consumer goods.” It notes increased resort to external credit lines which
now constitute 30% of import funding.
While a weakening of the rand
would probably help moderate the rate of
local price rises it is also likely
to add to overall increased import
charges which would exceed the country’s
capacity to settle promptly. A
return to some form of selective rationing
or even resort to quantitative
import restrictions cannot be
discounted.
Disappointing as the above reduced growth prospects may be, it is
germane to
recall that the prime cause of the restoration of real growth in
2009 was
the replacement of the then almost totally worthless local dollar
by
comparatively stable foreign currencies. This was, however, a one-off
event, indeed, one forced upon the country by its inability to go on
printing ever-higher denomination banknotes in line with
inflation.
Stimuli to carry the economy forward now need to be part of a
coherent and
consistent process that is the outcome of policy decisions.
The minister
cited eight objectives from Sterp II intended “to build a
dynamic, stable
and sustainable economy”. The major problem, however, is
not in enunciating
policies but in ensuring that the policies are
implemented by elements
within the GPA.
The mid-year review noted that
only US$207 million had so far been provided
to finance the US$810 million
vote of credit. Little wonder then that the
minister is unable to accede to
demands for public sector pay increases.
The government’s hopes that the
private sector would assist development and
increase employment have also
been dashed by an outflow of foreign capital
consequent upon the gazetting
of indigenisation regulations and a lack of
effective protection for
property rights.
There is too a need for measures to forestall the adverse
impact of an
impending deterioration in the current account position on
banks’ foreign
assets, their scope for financial intermediation and an
anticipated slowdown
in import growth. Finally, steps need to be taken
urgently to pave the way
for eventual debt relief and access to donor
funding.
These major financial hurdles are insuperable without substantial
external
assistance. The latter can be expected only in the event of what
is
considered externally a significant improvement in local policies. Until
this issue is resolved the prospects of further, strong economic growth will
remain problematic.— Tetrad Research.
http://www.theindependent.co.zw/
Thursday, 05 August 2010 20:25
WITH a
street-smart name like Masawara, Shona street lingo for "wise guys",
this
company sees itself as destined to make smart business decisions.
The new
fund, like the Zimbabwean (Sawara) has a penchant for creating value
in
hopeless situations.
So when it emerged this week that TA Holdings
chief, Shingi Mutasa, and the
CEO of one of London's most respected fund
managers, Neil Woodford, had
invested in Masawara plc, the news created a
lot of hype, even in London.
According to the company's website,
Masawara hopes to take advantage of
"distorted" valuations on the
market.
"Following the stabilisation of the economy, Zimbabwe
presents an attractive
investment opportunity. Masawara is well placed to
take advantage of
depressed valuations in Zimbabwe as companies look for
investment to fund
growth. While primarily investing in Zimbabwe, the
company will also
consider investments in neighbouring countries. In
addition, while control
is not a pre-requisite for investment, the company
requires board influence
in all of its investments," the company
said.
Woodford, who manages about US$26 billion for Invesco
Perpetual, has bought
a 29,5% stake in Masawara, a fund that will be valued
at US$80 million when
trading in the shares begins on London's Alternative
Investment Market in a
fortnight. This week reports said one of the most
highly regarded fund
managers in London had committed US$25 million of
clients' money to
investment in Zimbabwe.
Masawara, like LonZim,
intends to buy into Zimbabwean mines, agriculture,
telecommunications and
property companies as well as taking part in the
privatisation of state-held
assets. The company, which is incorporated in
Jersey, a tax haven, owns 40%
cent of Harare's biggest commercial property
development, Joina Centre, and
almost a third of TA Holdings, another
investment company with stakes in
agriculture and mining. Its strategy, to
target cheap assets, is not new
either.
Until 2007, the new LonRho, like most risk averse investors,
had stayed out
of Zimbabwe for almost a decade since the death of its
patriarch, "Tiny"
Rowland.
Its first acquisition was ZSE midcap
technology group Celsys in 2007. Since
then, the company has been targeting
cheap assets in the country.
Even after dollarisation, current
executive chairman David Lenigas' strategy
remains simply going after cheap
but valuable assets.
Though LonZim's parent company, LonRho, tries to
be the company it used to
be, analysts say LonRho could have blown its
chances to reclaim its former
glory.
The old LonRho owned just
about everything in the economy during its heyday.
The group controlled
Hwange (then Wankie) Colliery Company, David Whitehead,
Philip Chiyangwa's
Crittal Hope, Zimoco, the local Mercedes Benz dealer, and
gold mines, among
other interests. The group was so diversified that Forbes
valuers could not
put an actual value to it.
The conglomerate was one of the world's
biggest distributors of automobiles.
In Britain, Europe and Africa, Lonrho
sold Rolls-Royces, Volkswagens, Audis,
Mercedes, and French, Japanese and
American cars. The company was the
third-biggest producer of platinum (it
owned 100% of Western Platinum mines
in South Africa) was a major producer
of gold in Ghana and in Zimbabwe and
published one of Britain's major Sunday
newspapers, The Observer, and 23
provincial newspapers in the
UK.
Lonrho was also the largest single producer of food in Africa,
owning 1,5
million acres and 125,000 cattle in 10
countries.
Adding up the bits and pieces, Forbes said the group
consisted of 800
operating entities doing business in 84 countries on four
continents -
although Africa was by far the most important contributor to
Lonrho's
earnings.
That was the old Lonrho under "Tiny"
Rowland.
Could LonZim be a worthy successor?
The timing of
its decision to raise £100 million for Zimbabwe in 2007 was
deemed not
perfect. Today, uncertainty surrounding empowerment laws and
regulations are
an impediment.
Last week, the company announced it had agreed on a
partnership with Econet
which would see its subsidiary ForgetMeNot Africa
supply solutions for
instant two-way chat. It appears an interesting
service, but surprisingly it
would come from a company that had promised
large scale takeovers at
inception. That Econet itself has kept cool on the
announcement suggests
Econet does not see it as a big deal, or perhaps, that
LonZim, in its haste
to appear to be stitching up the deals it promised,
went public a bit
prematurely.
Had LonZim used the money it had
at launch quickly, it would probably have
scooped up more valuable
businesses. The market was cheap and LonZim
appeared to have loads of
cash.
The offer is still valid. With over US$150 million, LonZim could
still buy a
sizeable portfolio.
The company could pick up Afre
(US13 million), BAT (US$40 million), FBC
(US$11,2 million), Star Africa
(US$36 million), TN Holdings (US$8,4
million), Trust Holdings (US$3,5
million), ZPI (US$8,5 milliion), and M&R
(US$36 million).
Now
more and more fund managers are following in the footsteps of LonZim and
doing a better a job of it, too.
http://www.theindependent.co.zw/
Thursday, 05 August 2010 20:23
THE
central bank is yet to redeem gold bonds owed to mines, leaving them
short
of operating capital. Zimbabwe Independent business editor Chris
Muronzi
(CM) this week interviewed Chamber of Mines of Zimbabwe CEO Chris
Hokonya
(CH), who highlighted problems in the sector and capacity
utilisation. CM:
Where does capacity utilisation stand in the mining sector?
CH:
Capacity utilisation in mining varies by sub sector, but broadly ranges
from
33 to 40%, with the exception of platinum and diamonds.
The Platinum Mines
are operating at near full capacity. Unki is expected to
commission
production in the fourth quarter of 2010.
Gold production is steadily rising,
though mines face capitalisation and
energy challenges. Much of the gold
sector is operating at 33-40%, with some
prospect for further gains in
capacity utilisation.
Chrome and coal production have also increased compared
to 2009, though
capacity utilisation continues to be hampered by power
interruptions and
funding constraints.
Asbestos production is affected by
the challenges facing SMM, with output
well below 10% of capacity. The
company has potential to produce more than
200 000 tonnes per
year.
Diamond mines are operating at near full capacity, with Murowa
undertaking
further expansion initiatives.
Nickel production capacity
remains low, as BNC is yet to commence
production, though preparatory work
is underway. Current nickel production
is a by-product of Platinum group of
metals(PGMs).
CM: Could you give us production output figures for the
first half of the
year and other minerals.
CH: Cumulative Gold
production at 4 tonnes in June indicates that the
sub-sector is on course to
realise the annual target of 7- 8 tonnes in 2010.
Total gold production was
4, 965 tonnes in 2009.
Coal production through to June 2010, implies that
annual production
forecast of 1,8 million tonnes could be achieved, which
would translate to
an annual growth of 8% over 2009.
Platinum and PGMs
output is projected to continue at full capacity and it is
estimated that
the sub sector could realise 15% growth over 2009.
Asbestos production for
the year is forecast at 4 060 tonnes – 22% lower
than in 2009.
Chrome
production through to June 2009 is 34% higher than the annual 2009
production. On current trends, annual chrome production for 2010 is forecast
to be 70% higher than 2009.
CM: Finance minister Tendai Biti says
the mining industry is going to grow
by 31% this year. Is this the chamber’s
view too?
CH: Yes. The chamber of Mines estimates mining production
growth of about
33% in 2010. The weighted growth for the industry, factoring
production for
the first half of the year, shows mining growth of about 33%.
All sectors
are projected to record positive growth, except asbestos and
Black granite.
The mining sector is undertaking extensive capital raising
initiatives and
applying internally generated resources to ramp up
production across all sub
sectors.
Mining houses are also exploring debt
financing with regional financial
institutions, as part of efforts to
underpin production expansion. Mines
are putting in place mitigatory
measures against power outages, with many
mines purchasing generators to
ensure production. This, however has the
effect of tying up financial
resources, which could be deployed in
exploration.
CM: In which
sectors do you see growth?
CH: All sub sectors are showing growth,
except for asbestos and granite.
SMM, which is still under administration,
has been unable to source funding
for its working capital requirements.
Otherwise all sub sectors are forecast
to grow – some at a slower pace than
others. The mining sector still faces
capitalisation and financing
challenges.
CM: What is the status of gold bonds introduced to settle
outstanding
payments to gold mines?
CH: The Gold bonds have not
yet been redeemed by the RBZ. As such this has
compounded the financial
challenges facing mines.
The Minister of Finance has stated that government
will takeover RBZ debt,
through an enabling Act. The mining industry
implores government to speed up
the process, which would enable mines to
sell the bonds to institutional
investors, such as pension funds and
insurance companies if the gold bonds
are given prescribed asset status.
This development would unlock resources
for the mining
sector.
CM: What is your view of the revised empowerment regulations.
Do you think
they address concerns you had raised earlier relating to
ambiguity of words
such “cede”?
CH: The revisions are a step
forward. There is need to conclude other
matters relating to mining such as
the Mines and Minerals Amendment Act to
give certainty to mining investment
environment. This will go a long way
towards addressing investor concerns
and restoring confidence.
The word “cede” was replaced with “dispose”’ and
removes ambiguity in as
much as disposal has been defined as sell.
The
Chamber of Mines also implores government to ensure that the mining
sector
board is speedily appointed to deal with immediate matters relating
to
economic empowerment, such as the establishment of minimum thresholds for
empowerment, the time frame for compliance and the empowerment
scorecard.
CM: How is the industry coping with power
outages?
CH: Power outages represent a recurring challenge for the
whole economy and
the mining sector. Some mines are buying generators to
keep production
going. The long term solution is investing in new energy
generation capacity
and this requires significant financial resources. The
Chamber of Mines
continues to advocate for an improved investment
environment to attract FDI,
necessary for growth of the economy.
Peak
power demand in the country is 2 200 MW and currently production
amounts to
about 1 335 MW. In addition to the need to financially capacitate
Zesa, to
ensure that all the six units at Hwange Power Station are fully
operational,
the Chamber of Mines implores power authorities to implement
demand
management measures such as installation of prepaid meters and a
national
exercise to introduce energy servers for efficient energy
utilisation.
http://www.theindependent.co.zw/
Thursday, 05 August 2010
21:09
We had a good chuckle over the Herald's opening line in its
editorial
Comment on Monday that read "We couldn't agree more with President
Mugabe..."
Doesn't the Herald invariably agree with President Mugabe?
Has it ever done
anything other than agree with President Mugabe?
Isn't
it rather sad when a paper doesn't have a view of its own but must
wait for
the president to pronounce on something and then rush to agree with
him!
The paper's editorialists then waxed indignant over US Ambassador
Charles
Ray's walkout after Mugabe's abuse of Western nations became a tad
too
vitriolic.
"Try as we might, we cannot find any part of the
president's speech that
warranted such discourtesy from Mr Ray," the paper
declared.
It obviously wasn't listening. Who, having kept thousands of
Zimbabweans
alive with generous handouts in recent years, wants to be told
to "go to
hell" four times in one sentence? How courteous is that to one of
the
country's leading benefactors when he attends a national event? The
German
ambassador obviously felt the same way
Their countries are obliged
to help us because Mugabe and his supporters
have wrecked a once productive
economy. The damage incurred by the
empowerment regulations speaks volumes
for how this government, while
denouncing others, has imposed its own form
of sanctions on the country.
Nhlanhla Masuku, not known as a friend of
the MDC, added his voice last
weekend to that of the Reserve Bank governor
on the "downward spiral" the
regulations have caused.
Then there is the
looting at Ma-range.
"Of course it is all part of an or- chestrated campaign
against the
Patriotic Front liberation movements," Stephen Mpofu wrote in
the Herald
this week. Regime change was still on the cards of imperialism,
he warned.
And then he rather neatly summarised the situation.
"For it is
as if the money from the sale of diamonds from Marange, which is
the case in
point here, will all go into the kitty of Zanu PF and not into
the coffers
of the inclusive government for the benefit of the entire
nation."
Couldn't have put it better ourselves! And perhaps Mpofu can
tell us where
it has all gone so far?
Anyway, we know why MDC leaders in
the past felt unable to attend ceremonies
where insults were hurled at them.
These events, instead of imbuing a sense
of nationhood, have become partisan
and abusive gatherings where the
president betrays his resentment of the new
order in the country.
The Herald felt that because Ambassador Ray was black,
he demonstrated
"shocking naiveté" in failing to sympathise with Mugabe's
outbursts.
This exposes an interesting point. The Herald's handlers always
believed
they could get away with misrule because, it was hoped, African
Americans
would sympathise with delinquent nationalists.
But it didn't
turn out like that. Every new appointment from am-bassadors to
assistant
secretaries of state demonstrated that Zimbabwe's appalling record
on
governance was as unacceptable to them as it was to an earlier generation
of
Americans.
And Zimbabwean diplomats calling senior US officials "house
slaves" simply
compounded the impression of a rogue state. Combine this with
a head of
state telling his critics to "go to hell"- four times - and you
will see a
state having difficulty rescuing itself from the morass into
which it has
sunk.
We have repeatedly warned that Simbarashe Mumbengegwi,
who pompously
reprimanded the three ambassadors who understandably walked
out on Mugabe's
fulmina-tions, is unlikely to command much sympathy in
Brussels when he next
attempts to reopen reengagement talks.
Can you
imagine that having spoken to Albrecht Konze and Barbra Plinqert in
that
officious manner he will be invited to Brussels again any time
soon!
Reengagement is dead. And Mumbengegwi is in part responsible for
that.
Relations with the US have also sunk to a new low.
At least senior
officials on the Americas desk at the Foreign Affairs
ministry are not
trying to defend this crass diplomacy!
We were interested to see that
Herald columnist Tendai Midzi is continuing
to describe himself as a
senior lecturer in economics at the London
Metropolitan University
When
he first described himself as such a few weeks ago, we
called the university
which said they had no such person teaching there.
We find it difficult to
believe that the editor would publish such a blatant
whopper when the facts
are easy to establish by a quick call to the
university.
Let's hear no
more reference to ethics from people like Tafataona Mahoso
when this sort of
thing persists in the state press.
Midzi's story was originally published by
talkzimbabwe.com. Did they verify
his claim to being a senior economics
lecturer? Obviously not!
Poor old Jacob Zuma must be a worried man. With
memories of one of his wives'
reported acts of infidelity with his aide,
Zuma will not be comfortable with
one of his ministers.
Co-operative
Governance minister Sicelo Shiceka is busy fending off
allegations of acts
of infidelity involving other people's wives.
Shiceka made his first public
appearance in Pretoria this week after weeks
of speculation that he was
missing crucial government meetings because he
was allegedly beaten to a
pulp by a jealous husband.
"I don't sleep with other people's wives," said
Shiceka. "There are so many
single women out there. These are lies."
He
said that the woman whom he allegedly cheated with has also denied the
allegations.
But claims that the minister was indeed beaten up by a
jealous husband
heightened this week when he was seen using crutches while
attending a press
briefing by President Zuma at the Union Buildings in
Pretoria.
Zuma responded with laughter when a reporter who was in Cape Town
asked the
president through a video link about Shiceka's
whereabouts.
Zuma was announcing his decision to investigate matters related
to the
legitimacy of paramountcies, a responsibility of Shiceka's
department.
Shiceka - who also had a scar on his head - said: "I fell on the
stairs at
my home. This news that I was in a person's house is a lie. As a
principle I
don't sleep (with) or date other men's wives."
But while
President Zuma appeared to chuckle over Shiceka's alleged
misdemeanours, he
is clearly a source of discomfort to the president.
Zuma fell victim to one
of his bodyguards who allegedly entertained his wife
MaNtuli a few months
ago, perhaps taking his job description a tad too
seriously!
http://www.theindependent.co.zw/
Thursday, 05 August 2010 21:04
MOST
admirably the Minister of Finance Tendai Biti has, ever since he came
into
office 18 months ago, vigorously pursued a policy that the Zimbabwean
government should only "eat that which it gathers".
In his very
first fiscal policy statement to parliament, reviewing and
modifying
Zimbabwe's 2010 national Budget (which had been formulated and
presented by
his immediate predecessor, then Acting Minister of Finance
Patrick
Chinamasa), he emphasised a determination that the state cease
expending far
beyond its means, incurring ever greater debt. Already then
the debt that
had been accumulated over many years was gargantuan to such an
extent that
Zimbabwe did not, and does not, have the resources to fund its
debt service
obligations.
The minister justly considered this circumstance to be
untenable, and that
it had to be forthrightly addressed. He strove to slash
expenditure
intensively, concurrently with endeavours to enhance the state's
revenue
inflows. Although he has had some success in his drive to curb
expenditure,
growth in revenue has been relatively minimal, primarily
because the country's
economic circumstances have been and still are gravely
straitened, yielding
relatively minimal inflows of direct and indirect
taxes.
In awareness of the distressed state of the economy, notwithstanding
some
recovery achieved in 2009, the minister has also recurrently emphasised
the
need for more substantive recovery. Although hindered in pursuing the
recovery by innumerable counter-productive government policies on
agriculture, mining and investment promotion, he has sought to motivate
economic upturn and can justly claim much of the credit for the improvements
achieved in 2009, notwithstanding that they fell far short of those
needed.
However, the minister has nevertheless failed to recognise adequately
that
the maxim "you can only eat that which you gather" must be matched with
pursuit of the maxim "you can only gather (reap) that which you sow".
Whilst limiting fiscal consumption to the funding inflows he was able to
gather, he has not sufficiently sought to increase the ability to gather
more, other than by pursuit of burdensome taxes excessively beyond the
sustainable means of the economy. In failing to achieve significant growth
in state revenues other than by ongoing imposition of onerous taxes, and by
ensuring greater national compliance with taxation laws, he impairs
attaining the objective of raising sufficient revenue to meet necessary
expenditures.
Admittedly, he can credibly contend that Zimbabwe would
have had, and will
have, far greater economic growth, with consequential
considerably greater
fiscal revenues, if his "inclusive government"
colleagues would determinedly
ensure a stable political environment
(including unequivocal implementation
of the global political agreement,
devoid of endless breaches of that
agreement). If they would not repeatedly
create economic recovery and
growth hurdles such as the ill-conceived
Indigenisation and Economic
Empowerment legislation, and the equally
ill-conceived Mines and Minerals
legislation, that greater growth would have
been realised. Similarly, if
they ensured absolute democracy, complete
pursuit of law and order within
internationally recognised norms, cessation
of farm invasions, effective
enablement of new farms, and restoration of
property rights, the economic
growth would be such as would enable Biti to
gather much, much more.
But Biti cannot abdicate responsibility for pursuit
of that economic growth
exclusively to his colleagues, and he must be far
more innovative in his
endeavours to gather more. To do so, he must not
leave it to others to sow
the seeds and to ensure their growth, so that he
can gather more. He too
must do so. Opportunities for him to do so abound,
including:
* Allowance of an extended period of time (at
least two months) for
commerce and industry to remit Value Added Tax (Vat)
to the Zimbabwe Revenue
Authority (Zimra), instead of payment having to be
made within 15 days of
month-end. The present constrained payment period
precludes manufacturers,
wholesalers and retailers from extending credit to
customers, as they then
have to have the financial liquidity to pay the Vat
to Zimra before
receiving it from customers. An extended Vat payment period
would enable
them to sell considerably greater volumes, yielding far greater
Vat inflows
to the fiscus, and enhancing profits with resultant increased
income tax
being payable. Moreover, increased sales volumes would
necessitate
employment creation, which would result in greater consumer
spending power,
generating even greater Vat and income tax inflows to the
fiscus, as well as
growth in customs duties revenues, and more Paye being
generated for the
state.
* Introduction of meaningful export
in-
centives to accord potential exporters opportunities of being export
market
competitive, notwithstanding higher production costs in Zimbabwe as a
result
of high charges by parastatals and local authorities, and caused by
wage
levels generally exceeding those borne by competitors abroad. Export
market
competitiveness would result in increased sales, yielding profits
which
would result in increased income tax being payable, and would yield
employment creation which would increase the inflows of Paye, and of vat and
customs on the spending of those gaining employment. The incentives would
not entail a cost to the state, for they apply to revenues which would not
accrue in the absence of enhanced exports.
* Similarly,
substantive investment incentives should be introduced to
stimulate
investment which would contribute to economic recovery, with
concomitant
employment creation and consequential enhanced direct and
indirect taxation
inflows. The incentives would be linked to investment
earnings which would
not be attained in the absence of the investment, and
which therefore would
not have generated taxes, and hence would be devoid of
real cost to the
fiscus.
* Meaningfully increasing the Paye threshold (instead of the
hideously
minimal US$15 increase granted in the recent 2010 Budget mid-year
review).
If the threshold were US$300, instead of an insignificant US$175,
not only
would the gap in the Poverty Datum Lime be narrowed, but consumer
spending
power would increase, resulting in attendant increased fiscal
revenues. In
like manner, the various Paye tax bands should be realistically
modified
upwards.
* The minster's recurrent assaults upon the
mining sector should be
replaced with inducement and motivation of mining
development by the private
sector in general, and by foreign investors in
particular. This would
result in massively increased numbers employed, with
attendant tax revenues
to the state, and considerable downstream economic
growth, similarly
fuelling improved governmental revenues.
These and
many other constructive taxation policies would accord the
minister ability
to reap much more than is presently the case, for the
sowing of such seeds
would considerably increase the harvestable crops.
Eric Bloch
http://www.theindependent.co.zw/
Thursday, 05 August 2010
20:58
FORMER British diplomat Philip Barclay writes of the years he spent
in the
country known to Western journalists and their governments as
"Mugabe's
Zimbabwe".
His book reflects not only his country's attitude
towards the actors in
Zimbabwe's crisis but his personal antipathy towards a
man and a regime that
he considers
responsible for massive human rights
violations.
Barclay writes in glowing terms of the human rights activists he
met daily -
his job was to be a sort of point man for civil society groups.
But even
this staunch supporter of activists in Zimbabwe was forced to
concede that
amid the useful information that came his way was some
exaggeration.
As he writes, during the period prior to the run-off election
in Zimbabwe:
"Some contacts reported that Zanu PF was amputating hands and
arms in the
style of Sierra Leone's barbaric rebels. In fact this story was
untrue."
He is not the only opponent of Mugabe's regime to have found that
human
rights organisations occasionally stretch the truth.
In 2005, a
respected NGO reported of Darfur-like political rapes among women
in
Zimbabwe, and concluded that political violence was the "biggest killer
of
women in Zimbabwe". This is not true because domestic violence, a daily
occurrence in Zimbabwe, is a bigger killer of women than the sporadic
electoral violence which occurs mostly around elections.
But while
domestic violence may have been the fashionable cause in the 1980s
when the
Msasa Project conducted nation-wide campaigns, it is political
violence that
is all the rage now.
Yes, the Zimbabwean government has been guilty of gross
human rights
violations, particularly around elections. And it has failed to
provide
redress through the courts. Only the hardest heart can be unmoved by
the
fate of the dead, the missing and the tortured from the last election
and
those before.
But it is also the case that reports of human rights
abuses have often been
exaggerated. The more cynical of my cynical brethren
will tell you that
human rights abuses are the bread and butter of
activists, that from there
comes funding, and, the more abuses, the more the
money.
I admit to small quantities of cynicism, but I believe many activists
are
essentially well-meaning. It strikes me that most of the hyperbole
arises
from the need to focus "international attention" and action in a
world
saturated with abuses that drives activists to make outrageous
claims.
The recent discussion around the Kimberley Process certification of
Zimbabwe's
diamonds is instructive. Again, it is beyond doubt that there are
abuses in
the Marange alluvial fields. The reports from the various groups
that have
visited the area make for chilling reading. Extra-judicial
killings. Forced
labour syndicates. Child labour. Looting and
harassment.
But by no stretch of the imagination can you take from this that
Zimbabwe is
in some sort of war zone in which the sale of diamonds is being
used to fund
an insurgent group.
Africa Partnership Canada made the
extraordinary claim that the Joint
Operations Command is a rebel movement
funded by diamonds that is trying to
unseat the legitimate government of
Zimbabwe. By legitimate government they
mean the unity government, made up
of MDC ministers who are as keen to get
the diamond certification as their
Zanu PF counterparts.
One group after another rallied around the term "blood
diamonds", conjuring
up images of international criminal trials and Naomi
Campbell and Charles
Taylor and Leonardo di Caprio with a Rhodesian accent.
Something, they
insisted, must be done.
And yet the something that must
be done cannot be done because the Kimberley
definition of conflict diamonds
is clear: conflict diamonds are diamonds
from areas controlled by forces
opposed to legitimate governments used to
fund military action. Zimbabwe's
diamonds simply do not meet this
definition.
This past week, lawyer and
activist Beatrice Mtetwa received an award for
her work from the American
Bar Association. The Association has made the
same award to a group of
Zimbabweans whom it considered to have made a
contribution to the
achievement of human rights - the Supreme Court of
Zimbabwe.
That was in
2001, nine short years ago, but they may as well be an eternity
because it
was another court in another country, a court that insisted on
habeas corpus
after the incarceration of Dumiso Dabengwa, Lookout Masuku and
others; a
court that struck down corporal punishment, a court that strained
to avoid
imposing the death penalty, a court that recognised that equality
for women
was a human right, a court whose judgments were used as precedent
in courts
beyond Zimbabwe.
If we had that court, we would not need our hard-working
activists. But
until that time we must rely on them to highlight the many
instances of
oppression and injustice in our country.
But for as long as
they exaggerate situations that are terrible enough not
to need
exaggeration, activists will play into the hands of their
opponents.
Petina Gappah is an award-winning Zimbabwean writer and
lawyer. This article
was originally published in the Times (SA).
http://www.theindependent.co.zw/
Thursday, 05 August 2010
20:56
THERE are a number of risks that are associated with tabling a
different
opinion on the much publicised issue of devolution. This is
because it is
something that has been debated against the backdrop of
accusations that the
central government is guilty of crimes against humanity
in the early 1980s
and therefore not nearly legitimate enough to be allowed
to directly
influence policy in specific regions. This is specifically true
for
Matabeleland and Midlands provinces that suffered the brunt of the
brutality
of the notorious North Korean-trained Fifth Brigade of the
Zimbabwe National
Army.
It is also in the latter mentioned provinces that
before it united with Zanu
PF, PF Zapu was almost unbeatable in local or
parliamentary elections and
came to view these provinces as its fiefdom.
Indeed things have changed for
the fortunes of Zanu PF in present day
Zimbabwe but this does not mean there
are no other politicians who claim
these provinces on the basis of ethnicity
or history as their fiefdoms, an
issue which presents us with a departure
point in analysing the call for a
devolved state.
The initial call for devolution emanates primarily from an
historical
grievance based on the atrocities committed by the then central
government
in Matabeleland and Midlands. It sought and continues to seek
both the
recognition of the historical injustice as well as the
establishment of an
alternative political framework to attempt to prevent
the recurrence of such
violence. Recently the debate in the media has been
linked to the issue of
state allocation of resources, especially in the
aftermath of the accidental
discovery of diamonds in Manicaland.
True
enough, every other person of influence who comes from one region or
the
other is now sure that one day in their province there can be discovered
some mineral that they would want to exploit both for themselves or, to put
it in a politically correct manner, for their region.
It therefore
becomes an issue of the allocation of power for reasons that
range from
trying to take matters of historical atrocities into the hands of
people in
the affected regions, determining resource distribution on the
basis of
region of origin and direct control of mineral wealth by leaders
that hail
from the source of origin of the same mineral. The essential point
therefore
becomes that these issues are not necessarily unsolvable by a
central
government.
Because devolution is generally political euphemism for "semi
autonomy", it
is important to explain its full import in Zimbabwe's
context. It would
mean, at least given what has been proposed on paper, the
mimicking of
central government structures at a regional or local
level.
For example, for Harare there would a provincial assembly/parliament
and
provincial executive/cabinet. The nature of the interface between the
central and provincial government would be something akin to what obtains in
South Africa, minus the population and geographical size of the latter
country. So before it is anything else, devolution is primarily political.
It creates new platforms of political legitimacy that seek to reduce the
power and legitimacy of the central state in favour of local affiliations or
even resources. And in our instance, this is all being proposed without a
critical examination of the causes of the failure of the central state. This
is a development that would see devolution become a knee- jerk response to
the failures of the Zanu PF-led central government.
In a country as small
as ours, we must begin by critically examining the
failures of the central
government and issues of national delivery before
clouding our judgment with
solutions that seek to reflect the same sort of
failures at regional
level.
The primary failure of our central government has been a lack of
transparency and accountability as well as the failure to decentralise the
functions of the state. For example, when Finance minister Biti told
parliament that he did not have any record of the diamonds sold in the
national revenue records it was not because there was provincial cabinet or
parliament in Manicaland. Instead the reason would be that there was no
legislative framework that promoted accountability on the resources
acquired, a situation which sadly remains true today.
Establishing a
somewhat executive authority in Manicaland does not
necessarily translate to
transparency. Instead it may mean the extension of
a culture of kleptocracy
at a local level in mimicry of that which is done
at national level. In
other words the problem is not with the fact that
there is no devolution,
instead it resides more in the non-transparent
culture that informs how
central government is run.
Because we cannot easily ignore the causes of the
call for devolution, it is
necessary to proffer some arguments on why all
the problems are still
solvable by a central but democratic government. The
first cause is that the
legitimate historical grievance of accounting for
the perpetrators of
Gukaruhandi cannot be redressed by devolution but by
justice. Indeed some
may argue that because of this period, devolution is
valid. This would be to
miss the point. The urgency instead should be to
address these historical
grievances comprehensively and as a nation. The
mechanisms to do this can be
argued elsewhere but include an independent
commission of inquiry with a
brief to establish a vehicle for reparations to
victims as well as the power
to sentence perpetrators.
The second issue
that must be considered is that the failure of Zanu PF in
charge of central
government is not the failure of the state. It is the
democratisation of
the central and local government structures that is more
important, and this
is why in the first place the debate should be about
decentralisation in
order to enhance accountability and transparency and not
merely replicate
the current power structures of central government.
A decentralisation that
ensures the availability of services to all across
the country be it in
health, education, transport services, water, passports
and birth
certificate provision is what would be preferable. And this
should be done
with an understanding of the importance of democratic rural
and urban
councils without undue interference as is the case with the
current Ministry
of Local Government.
By Takura Zhangazha
http://www.theindependent.co.zw/
Thursday, 05 August 2010 22:03
WHEN
people bury their loved ones, they are expected to be humble and
respectful
to their guests. In typical African culture, those with a score
to settle
will wait for another day rather than spoil the sombre atmosphere
with
tirades that only serve to upset their guests.
President Mugabe at
the weekend not only discarded the African norm of being
civil to guests at
a funeral but threw spanners in the works of the
re-engagement exercise with
the West. While Mugabe has previously poured
scorn on the re-engagement
exercise, claiming instead that Zimbabwe could
turn to "friends in other
parts of the world", it is imperative that his
handlers realise that the
kind of contempt that he is exhibiting towards
envoys of nations that
Zimbabwe is looking to for its economic recovery
could only worsen the
situation.
It is precisely because of Zanu PF arrogance that Zimbabwe finds
itself in a
situation where it is going around the world with a begging
bowl. Although
Mugabe may be excited by the discovery of diamonds in
Chiadzwa to the extent
that he believes they alone can revive the country's
economy, he needs to be
reminded that Zimbabwe is a small nation that needs
the community of nations
more than that community needs
Zimbabwe.
President Mugabe cannot hope for the lifting of sanctions when he
is going
on the offensive against the same countries that Zimbabwe is
supposed to be
mending bridges with. Zimbabwe needs to strengthen trade ties
with its
traditional trading partners and this can only be achieved through
constructive engagement.
The starting point should be courtesy from
President Mugabe because it is
these diplomats who influence the policies of
their countries. Already US
President Obama has indicated that he is not
amused with the actions of the
86-year-old leader. Obama said on Tuesday
that he was "heartbroken" over the
situation in Zimbabwe and that "Mugabe
was not serving his people well".
It is high time that Mugabe and his cronies
realise that they no longer
represent the aspirations of ordinary
Zimbabweans. Zimbabweans rejected them
at the ballot, hence the inclusive
government. When he speaks on behalf of
Zimbabweans, he should exercise the
same restraint that Zimbabweans have
exercised under his rule where they
have not taken any drastic action. It is
about time that people stood up to
Mugabe and pointed to the folly of his
stubbornness as the Western diplomats
did last weekend when they showed him
their backs.
United States
Ambassador Charles Ray has refused to apologise for leaving
Heroes Acre in
protest at Mugabe's intemperate remarks at the burial of his
sister where
the envoy was told to "go to hell".
The US is Zimbabwe's biggest aid donor.
Ray said he followed normal
diplomatic protocol in attending the funeral of
Mugabe's sister Sabina, who
died aged 80. But he said that when Mugabe began
his invective, "we walked
away as we were very disappointed in his conduct,
so we have nothing to
apologise for."
http://www.theindependent.co.zw/
Thursday, 05 August 2010
21:59
THE Copac exercise is a trough-feeding exercise that enriches a
select elite
while engaging in a fraudulent consultation of "the people", a
process that
will either deliver pre-conceived ideologies from the parties
in charge or a
bastardised amalgamation of unworkable and contradictory
clauses.
Consultation is a buzzword that on closer examination does not
have much
meaning, except to justify a particular position. If we ask 50
people for
their opinions and then promote one of these, is it justified
because we
have consulted? What about the little old woman in the corner who
is too
nervous to speak in public but has her own opinions? What about the
loud-mouthed know-it-all who makes the most noise? Is his opinion more valid
because he is so forceful? What about the 950 people who didn't hear about
the consultation or could not get time off work to attend? Are their
opinions to be disregarded because they could not fit in with our
schedule?
Apart from the abuse of "consultation" to justify one set of
opinions, there
is a fundamental flaw in the idea and practice of
"majoritarianism" - the
majority is not necessarily right. The majority of
Germans supported Hitler.
look where that took them and the world! In the
matter of constitutions we
need wise and considered counsel, not the
appeasement of the majority.
Zimbabwe is not unique in the world. There are
over 200 other countries, all
of which have had their trials and
tribulations, their killer kings and
civil wars, their colonists and
liberators, their betrayers and heroes.
There are hundreds of constitutions
out there that serve their people to a
better or worse degree. There has
been no education of Zimbabweans about
these documents and what their
strengths and weaknesses are. Without knowing
what the options are, how can
we make an educated choice?
Without understanding the importance of a
constitution and the need for the
inclusive protection of all our people,
not just the ones we approve of,
people put forward their opinions as
proposals but opinions are dicey
terrain upon which to build a state.
Zimbabweans have been so brutalised by
these oppressors, force-fed lies and
propaganda, denied information and
ideas and opinions from which to make
considered judgements, which left up
to "the people", no doubt we would
have executions of homosexuals in
public.
This is a fatally flawed
process foisted onto us by elite politicians who
will never surrender their
power, who will say they have consulted and then
push forward their own
agendas regardless. We all know of Zanu PF's contempt
for the law, for due
process, for constitutions, for people but the MDC is
quite capable of
emulating them: the contempt for their own constitution
demonstrated in 2005
(when Morgan Tsvangirai rode roughshod over the
document to push his own
views ahead of the majority and precipitate the
split) and again in 2009
(when they quietly removed the term limits to allow
Tsvangirai to remain in
place) demonstrates that they too were nurtured at
the poisonous bosom of
Zimbabwe's political culture, with its intolerance,
violence, parochialism.
The MDC will treat any constitution as a tool to
achieve their goals,
subject to the exigencies of politics and
self-interest.
Constitutions
should not be crafted by politicians or "the people" but by
constitutional
specialists with a wide knowledge of different constitutions
around the
world and a healthy scepticism of politicians and their
machinations. Their
work should be based on clearly expressed principles
identified by popular
debate. For instance, if "the people" are consulted
and their views filtered
by commissioners, who knows what they said or didn't.
And anyway if 99% of
"the people" want public executions, does that
legitimise the inclusion of
such a clause? Does a majority make it right?
No, it makes it popular. The
constitution should protect us from mob
sentiment as much as from rapacious
politicians.
http://www.theindependent.co.zw/
Thursday, 05 August 2010
21:56
WE have seen this before. A flurry of activity just before a
meeting of
regional leaders. So it was expected that Jacob Zuma would
ratchet up
pressure on Harare to fully implement the Global Political
Agreement (GPA)
ahead of the Sadc leaders’ summit set for Namibia later this
month.
As the Sadc-appointed mediator, Zuma is only too keen to show
his peers how
well he has done on Zimbabwe. Hence, his point man, Mac
Maharaj, was in
townthis week for the second time in as many days.
No
doubt, Sadc will receive a positive report from Zuma’s team. A communiqué
noting progress in implementing the GPA and an encouragement for political
leaders to remain engaged is all Zimbabweans can expect from the Namibia
Sadc summit.
Probably this is the reason Zimbabweans are not all worked
up by Zuma’s
intensified visits to bridge differences between President
Robert Mugabe and
Prime Minister Morgan Tsvangirai. They have lived with the
coalition
government for 16 months — long enough to know that Namibia’s
roundtable
will not suddenly force the limping administration to
function.
Stunted industrial growth, which has reduced the majority of
unemployed
Zimbabweans to vendors, is testimony to the damage caused by
Mugabe’s
continued refusal to implement provisions of an agreement many view
as his
saviour after the March 2008 electoral loss to Tsvangirai. His
foot-dragging
is beginning to sicken most Zimbabweans. Nothing much has
changed since
February 2009 when this coalition was formed. Little is likely
to change as
long as Mugabe behaves as he does.
In the rural areas,
tensions still run high. Civil society groups such as
the Zimbabwe Peace
Project continue recording incidents of violence and
constitution-making
related intimidation. Police, despite repeated claims of
impartiality, are
yet to prove their credibility by arresting perpetrators
of the resurgent
violence. Political cases pending before the courts show a
clear pattern of
continued abuse of the criminal justice system by hard-line
members of the
old order.
In the farming areas the government is turning a blind eye to farm
workers,
including a large number of migrants from regional countries, who
are
suffering at the hands of new farm owners and security agents.
All
these examples hardly need Zuma or Sadc. Of course, it is critical for
Zuma
and Sadc to keep their eye on Zimbabwe. They are the mediators and
guarantors of the GPA. But relying on them too much is not
useful.
Zimbabwe’s future stability rests with the level of commitment by GPA
principals. An array of the issues still regarded as outstanding will reveal
that Mugabe and his allies in the security sector are holding this country
back. It is his party that is shredding the GPA and it is him and his party
that need to start behaving in the national interest.
At 86 Mugabe is
showing a state that Zimbabwe can no longer afford. He is
not behaving as if
he is in a coalition government upon whose success
Zimbabwe’s future is
pinned. It is time that Mugabe and his party start
committing themselves to
making the coalition government work.
The MDC has put outstanding issues into
three categories - agreed but
unimplemented issues, deadlocked issues, and
emerging, or what the party
likes to call toxic, issues.
These issues are
resolvable, the same way other sticking issues that have
been affecting this
government were resolved. Some issues, like the
appointment of provincial
governors, are purely administrative. Zuma and
Sadc can only do so much.
Regional leaders, with their own internal problems
to grapple with, cannot
force Zimbabwe’s leaders to act differently. After
all, African leaders do
not have a culture of strong-handedness when it
comes to dealing with one of
their own. It becomes even more difficult for
them when the “problem child”
is a man who led resistance to colonialism
when some of them were in their
diapers or even not yet born. How do they
tell a man who is supposed to be a
continental hero that his actions are
reducing him to zero without inviting
fierce wrath or reminders of how their
own countries are beneficiaries of
his early anti-colonialism campaign?
Ending Zimbabwe’s damaging feuding is a
tough call for Sadc. But it is a
much easier task for Mugabe if he puts his
mind and commitment to it. He is
not growing any younger. His reputation is
in tatters. But surely he can
salvage some of it if he were to move out of
his cocoon and allow this
country to move forward.
The continued
suffering of ordinary people, highlighted by the fact that
Zimbabwe tops the
list of countries providing asylum seekers worldwide,
should drive this
country’s leaders into positive action.
Farai Mutsaka
http://www.theindependent.co.zw/
Thursday, 05 August 2010
21:12
CONTROVERSY over who qualifies for national hero status re-opened
this week
with the burial of President Robert Mugabe's sister Sabina at
Heroes Acre.
Several questionable characters have already been buried at this
national
shrine which is supposed to embody the country's heroic legacy
during and
after the 1970s war of liberation.
The fact that Sabina was
not actively involved in the liberation war, and
was not outstanding during
her time as a politician in Zanu PF after
Independence, has strengthened
calls for an overhaul of the national hero
status system. Veterans of the
guerilla war and those who closely followed
developments during and after
the war say the criteria used, where the Zanu
PF politburo sits to decide
such a national matter, needed revision.
Under the National Heroes Act Mugabe
holds the discretion to declare
national heroes. That Mugabe has failed to
recognise some outstanding
Zimbabweans as national heroes has ignited debate
that this status is being
abused to reward loyal political allies and
relatives.
An often cited example is that of Jairos Jiri. Jiri dedicated his
life and
personal resources to uplift the lives of the disabled and formed
what is
now one of the biggest welfare organisations in the country but was
not
conferred with national hero status.
Most of those buried at Heroes'
Acre are politicians who participated in the
liberation war. These were
mainly men and women who took leadership roles,
in various political parties
and organisations which were formed during the
1966 to 1979 war
years.
However, as history has shown, participation in the liberation war is
no
guarantee that one would be conferred with national hero status.
Ndabaningi
Sithole and James Chikerema's cases stand out.
Sithole was at
one time the leader of Zanu during the liberation war but was
elbowed out in
a coup that installed Mugabe in the late 70s. Chikerema was
one of the early
nationalists to fight colonialism but fell out of favour
when he left Zapu
to form the Front for the Liberation of Zimbabwe (Frolizi)
in 1971, a party
considered divisive as it attracted members from both Zapu
and
Zanu.
Sabina became the sixth woman to be conferred with national heroine
status.
All women buried at Heroes Acre, except Sabina, were spouses of
liberation
war leaders.
These are Sarah (Sally) Mugabe (wife of President
Mugabe), Johanna Nkomo
(wife of the late Vice President Joshua Nkomo), Julia
Zvobgo (wife of the
late firebrand politician Edison Zvobgo), Sunny
Ntombiyelanga Takawira (wife
of the late Zanu vice president Leopold
Takawira) and Ruth Chinamano (wife
of the late Zapu vice president Josiah
Chinamano).
The Zanu PF politburo declared Sabina a national heroine without
much debate
hours after her death, yet the same party has in some cases
taken ages to
decide on some people with impeccable war
credentials.
There are people like Lookout Masuku and Wilfort Lizart Sibanda
who were
buried in Bulawayo because the politburo took so long to decide
their
status.
Prime Minister Morgan Tsvangirai's MDC says cases like
these have forced it
to list the issue of Zanu PF's unilateral
decision-making on national hero
status as one of the contentious matters
affecting the coalition government.
On November 3 last year, Magwegwe Member
of Parliament Felix Sibanda moved a
motion that parliament set up a
committee "which will examine the matter and
make appropriate
recommendations to the House".
Sibanda, from Tsvangirai's party, proposed "a
non-partisan body could be
established and mandated to determine and confer
hero-status to all
deserving citizens across the political divide. To
recommend and commend to
the proposed non-partisan body to confer
Hero-status to all unsung
Heroes/Heroines across the political
divide."
The proposal, if adopted, would withdraw the mandate to discuss the
hero
status from the Zanu-PF Politburo.
Former top Zanu PF politburo
member and now leader of Zapu, Dumiso Dabengwa,
said the concept of the
national hero status was noble and limited to
liberation war combatants when
first mooted after Independence.
"However, there was a time when we said to
ourselves, we think we are being
selfish by only conferring the hero's
status to those who fought in the
war," said Dabengwa. "There are heroes who
are outstanding in other fields
and the criteria should be changed to accept
these types of heroes."
"It was agreed that it should be someone who excelled
during and after the
war," said Dabengwa. "Then we also took into account
the performance after
Independence whether the member remained constantly
involved in the
development of the nation."
Dabengwa said the
contribution made during the liberation war was important
as was the case
with George Nyandoro, who despite serving as the Lands,
Natural Resources
and Rural Development minister in the abortive 1979
internal settlement
government (Zimbabwe-Rhodesia) was declared a national
hero.
Nyandoro was
declared national hero "because of his contribution in the City
Youth
League," Dabengwa said. The City Youth League was later named the
African
National Congress Youth League, the first political organisation
that gave
birth to nationalist movements.
However, while Nyandoro came out unblemished
by his involvement with the
short-lived Zimbabwe-Rhodesia, Sithole,
Chikerema and Abel Muzorewa, leader
of the African National Council, were
not declared national heroes.
Academic, publisher and former civil servant
Ibbo Mandaza said the current
leadership had proven that they were unable to
resolve the controversy
around who should be a national hero.
"What is
needed is to come up with national guidelines and a national
criterion that
goes beyond political parties," said Mandaza. "So far this
issue has
remained controversial and if you take Jairos Jiri for example who
has been
left out yet he qualified. Heroes should cut across the spectrum be
it
politics, cultural social work or sports but highlighting the national
leadership," said Mandaza.
There are many ways of honouring heroes
including naming national
institutions, main roads, schools and towns after
the heroes. In Zimbabwe an
attempt to name schools after prominent people
and heroes faced massive
resistance further exposing the controversy around
who qualifies to be a
national hero.