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Company bosses detained over price breach

IOL

     February 09 2007 at 08:11PM

Zimbabwean police have arrested and detained two company executives on
charges of breaching a state-imposed price ceiling, police said on Friday.

National police spokesperson Wayne Bvudzijena confirmed the arrest of
Michael Manga, chief executive officer of leading milling firm Blue Ribbon
Foods and Ian Kind, managing director of National Foods.

"They are in police custody and they face charges of unilaterally
increasing the prices of goods whose prices are controlled," Bvudzijena
said.

They were accused of increasing the price of baking flour without
approval from the ministry of industry and international trade, which sets
prices for specified goods and assesses requests for price increases.

The arrests came two days after government warned it would jail shop
owners who overprice controlled commodities.

"Charging more than the price set by the price stabilisation committee
for controlled and monitored goods will attract a fine or a prison
sentence," the ministry said.

President Robert Mugabe's government first introduced price controls
for selected goods five years ago to snuff out a burgeoning black market
where scarce goods were sold for up to three times the state-imposed price.

The government occassionaly deploys police to raid businesses and
arrest price control violators who are usually released after paying a fine.

Zimbabwe's economy has been on a downturn in the last five years
characterised by runaway inflation which stood at over 1 200 percent in
December and perennial shortages of basic commodities such as cooking oil,
fuel and the staple cornmeal.


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Managers Released Amid Harare Policy Dispute Over Price Controls

VOA

By Blessing Zulu
Washington
09 February 2007

Two businessmen arrested this week by Zimbabwean officials mounting a
crackdown on alleged profiteering were liberated on Friday amidst
indications that there are deep divisions within the government on how to
bring prices under control.

Managing Directors Mike Manga and Ian Kind of Blue Ribbon Industries and
National Foods, respectively, were arrested on Thursday and spent the night
in cells at the Rhodesville police station in the capital.

Police said the managers had asked Minister of Industry Obert Mpofu to allow
them to raise the price of baking flour. Mpofu and Reserve Bank Governor
Gideon Gono have urged the police to arrest business people considered to be
overcharging and even to shut down business which hardliners accuse of
"sabotaging" the economy.

Mpofu told the Zimbabwe National Chamber of Commerce leadership Wednesday
that there can be no going back in the clampdown on businesses he claims are
inflating prices. ZNCC President Marah Hativagone confirmed the meeting took
place and she said the government needed to exercise restraint  in the
economic crisis.

The arrests of executives has caused consternation at high levels, as
certain ministers and ruling party officials have financial interests in
some of the targeted firms.

Lawyer Innocent Chagonda, representing Manga and Kind, told reporter
Blessing Zulu of VOA's Studio 7 for Zimbabwe that his clients were freed on
orders from high up.

Sources in the police unit tasked with enforcing price controls say they are
obstructed in their work by top officials who own stakes in businesses under
surveillance.


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Zim police arrest e.tv staffer in diamond district

Mail and Guardian

Riaan Wolmarans and Sapa-dpa | Johannesburg, South Africa

09 February 2007 10:25

A journalist working for South African free-to-air television
station e.tv and at least one assistant were arrested in eastern Zimbabwe
this week while trying to report on illegal dealings in the diamond-rich
Marange district, the station told the Mail & Guardian Online on Friday.

Peter Moyo, a Zimbabwean national working as a producer for
e.tv's investigative 3rd Degree programme, was arrested on Tuesday, said Sam
Rogers, the show's executive producer.

Also detained was cameraman William Gumbo, who was hired from
the Zimbabwean Broadcasting Corporation to work with Moyo. Zimbabwe's
state-controlled Herald newspaper reported that another Zimbabwean, named
only as Trymore, was also arrested, but Rogers could not confirm this.

Moyo was out on bail and on his way back to South Africa on
Friday, said Rogers, who added she did not know when the men would appear in
court again in Zimbabwe.

According to the Herald's report, the three were arrested by
police in Mutare and were found in possession of tapes that showed they had
been filming in the Marange and Bikita districts. Police in the area have
been trying to clamp down on illegal diamond mining and dealing.

The three will face charges of working without accreditation,
said the Herald. All journalists who work in Zimbabwe require permission
from the state-appointed Media and Information Commission (MIC).

However, Rogers said the Zimbabwean districts are a "real hot
spot" for illegal diamond dealings, often involving foreigners, and Moyo may
have been mistaken by police for one of these foreigners.

Police seized the reporters' cameras, videotapes and what was
described as a "spy video camera disguised as an ordinary satchel", said the
Herald. Rogers confirmed that the equipment belonged to e.tv and that the
station's lawyers were working on having it returned to South Africa.

Dozens of journalists, including several foreign reporters, have
been arrested under Zimbabwe's strict press laws since they came into effect
in 2002. Working without accreditation can result in prison sentences of up
to two years


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... and release him

Journalist arrested in Marange diamond area

By Tererai Karimakwenda
09 February 2007

A Zimbabwean journalist who works in South Africa for the independent e-TV
confirmed Friday that he was arrested earlier this week in the diamond
mining area of Marange and charged with working without accreditation.
Producer Peter Moyo said contrary to reports in the state media he was not
filming illegal diamond dealings in the area to discredit Zimbabwe, but was
actually on holiday.

Moyo also denied claims in the reports that he had hired William Gumbo, a
cameraman who works for the state's ZBC television, and a Zimbabwean named
Trymore. He said Gumbo is a long-time friend from school and Trymore is his
cousin. Both had joined him on holiday and were also arrested. The three
appeared in court Tuesday and were released on bail.

The state controlled Herald newspaper reported that Moyo had spy cameras
with him and footage of illegal diamond dealing activity in Marange. The
journalist explained that he declared the mini cameras at the border and was
given permission to enter the country with them. He said he was capturing
memories from his holiday, but it was impossible to avoid filming people who
are dealing in diamonds. Moyo described how he even saw teenage boys dealing
in the precious stones after midnight not far from a roadblock. He said: "We
are all Zimbabweans living in a free Zimbabwe and anyone on holiday should
be able to use a camera to capture their holidays."

We also received reports that the ZBC bureau chief for Mutare Andrew
Neshamba was arrested at a private lodge and accused of working with "an
e-TV crew" on a documentary about the looting of diamonds by top government
officials. Our sources said Neshamba received a letter from ZBC boss Henry
Muradzikwa saying he has been suspended, pending finalisation of his case.

Top government officials have long been implicated in the illegal diamond
deals in Manicaland and the issue is being investigated by a parliamentary
committee headed by MP Joel Gabbuza. Gabbuza told us last month his
committee would probe the illegal activity and deal with any government
officials involved. But a report in The Herald Friday said witnesses
testifying to the committee have refused to name the top officials.

SW Radio Africa Zimbabwe news


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Named and shamed

From The Daily Mirror, 9 February

Takunda Maodza

Small scale miners have begun naming top government officials and
politicians they claimed were involved in illegal gold dealings. This comes
hard on the heels of a call by the former Minister of State Enterprises,
Anti-Corruption and Anti-Monopolies Munyaradzi Paul Mangwana to expose
offenders and threats by police deputy commissioner Godwin Matanga to name
the culprits. Margaret Sangarwe, the permanent secretary in the Ministry of
Environment and Tourism, was yesterday implicated during a parliamentary
portfolio committee hearing as one of the high ranking government officials
who was involved in the underground activities. She was pointed out by miner
Febby Jabulani, the chairperson of the ruling party Zanu PF's Rifle Range
Ward 2, Mashonaland West, during the meeting initially chaired by Zanu PF
Kadoma West legislator Zacharia Ziyambi before MDC Binga lawmaker Gabuza
Joel Gabuza took over. Sangarwe was present when she was implicated. She had
gone to appear before the parliamentary portfolio committee on mines and
environment to give evidence on environmental degradation caused by illegal
panning.

But to her surprise, Jabulani pointed at her during the hearing and said:
"That woman (referring to Sangarwe who was seated in front of her) came with
a truck load of illegal panners and threatened me. The illegal panners
indicated they were working well with her (Sangarwe)." In her evidence
before the committee, Jabulani said Sangarwe owns a farm in the
Chegutu-Mhondoro area where panning is taking place. Committee member
Thembinkosi Sibindi immediately interjected on a point of order saying: "We
should not personalise issues. The small scale miners should talk about
their problems." Gabuza then granted the objection and ordered Jabulani to
air hindrances to the miners' operations after which she demanded that they
be allowed to return to their gold claims and resume work. The government
had shut down operations of all small scale miners in the country to make
them to comply with environmental laws. This, the government did under an
operation codenamed Chikorokoza Chapera/Isitsheketsha sesiphelile.

Sangarwe did not bother to respond to Jabulani's accusation, but instead
went ahead with her business of the day. Responding to a question on the
resumption of operations by small scale miners, she said: "We have not been
officially requested for any grace period. The grace period is granted by
Cabinet. I can't say for now they are going to be given a grace period.
These people were aware that they were supposed to have registered." But
soon after adjournment, this reporter saw Sangarwe walking up to Jabulani
and followed. Sangarwe complained that her name should not have been
mentioned and if there was any problem, it could have been resolved between
the two. In an interview with journalists afterwards, Jabulani claimed
Sangarwe had expressed her disappointment over what had transpired during
the hearing. "She said I should have approached her to resolve our
differences instead of mentioning her name before the committee," Jabulani
said. Earlier, Senator Tsitsi Muzenda and the former Minister of Mines
Edward Chindori-Chininga urged the small scale miners to expose politicians
involved in illegal gold dealings to rid the country of corruption.
Chindori-Chininga, the legislator for Guruve South said: "We are dealing
with symptoms instead of the actual problems. Who are the beneficiaries? The
police should deal with the beneficiaries. Who is benefiting? Let us deal
with those. Let us ask ourselves as MPs whether we are doing the right
thing."

Muzenda added her voice saying: "Last week, we were opening an RBZ mine in
Zvishavane and I heard that the police and some miners were sharing the
proceeds. It is time to talk, we should really find out who is benefiting."
She said corruption has reached alarming levels. Pauline Bandura, a Chegutu
small scale miner, accused the police conducting operation Chikorokoza
Chapera of engaging in corrupt activities. She claimed that a lot of gold
was stolen from closed mines and channeled to the black market. "The
government should sit down with us and investigate what is happening at the
mills," Bandura said. "The police are selling gold in compounds. They come
to compounds looking for buyers." However, Chindori-Chininga said the police
were only doing their job and urged committee members not to loose focus by
laying the blame on them. "Let's identify those that are assisting the
illegal gold panners," he insisted. Bikita West legislator retired colonel
Claudious Makova echoed the same sentiments, saying the police were only
being blamed because "they are easier to accuse than the big fish." "Let's
go deep down," Makova requested.

Gabuza then asked for the names of politicians involved, but the miners said
they would provide a list of the names in writing for fear of their lives.
Wonder Chanetsa, a small-scale miner said: "They are big people who are
buying gold from illegal panners. They cannot be named, they might kill you
if you mention them." It was then that Kariba lawmaker Jonathan
Shumbayawonda Chandengenda agreed that they provide the names in writing.
Earlier on Sangarwe had shown the committee a video showing the activities
of illegal gold panners and the impact on the environment. The video left
legislators shocked, as they watched illegal panners destroying sewerage
systems, ZESA electricity transformers, digging a football pitch, classrooms
and tarred roads. Sangarwe said Cabinet okayed operation Chikorokoza Chapera
after seeing the video. She vowed that her ministry would work flat out to
end illegal gold panning activities across the country.


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Zim miners fearful of fingering dirty politicians

Mail and Guardian

Harare, Zimbabwe

09 February 2007 02:04

Small-scale gold miners in Zimbabwe are scared to name
politicians they say are masterminding illegal mining operations because
they fear they will be killed, the official Herald newspaper reported on
Friday.

"You just cannot afford taking the risk of mentioning these
untouchable individuals because you will be killed as soon as you expose
them," Wonder Chanetsa, from the Zimbabwean Gold Miners' Association, told a
parliamentary committee this week.

Crisis-hit Zimbabwe has significant deposits of gold, diamonds
and precious minerals, but is losing desperately needed foreign currency as
dealers and miners siphon gems and metals out of the country.

Last week a senior police officer, Godwin Matanga, confirmed
some ministers and MPs were implicated in shady deals, but "that is as far
as I can say", the Herald reported Matanga as saying on February 2.

Illegal gold mining is reported to be rife near the southern
towns of Kadoma and Kwekwe, but levels of fear are so high that nobody will
name the prominent people involved.

"Even if we were to tell you the people involved, you will not
act because you will also be afraid of them," Evelyn Mushava, president of
the Zimbabwe Women Miners' Association told the committee.

About 28 000 illegal small-scale miners and dealers have been
arrested since the authorities launched a clampdown named Operation
Chikorokoza Chapera (No Illegal Panning) in November, but no politicians
have so far been netted.

At least 113 of those arrested have been convicted and sentenced
to mandatory two-year jail terms with labour, according to police. -- 
Sapa-dpa


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More than 5 000 arrested at Zim border

Mail and Guardian

Johannesburg, South Africa

09 February 2007 03:46

More than 5 000 illegal immigrants have been arrested in a bid
by police to curb crime along the South African/Zimbabwean border line,
Limpopo police said on Friday.

"A total of 5 438 illegal foreigners were arrested at the
borderline in January," said Superintendent Ronel Otto.

A further 94 people were arrested and fined for aiding and
transporting illegal immigrants.

In addition to the arrests, 43 958 cartons of cigarettes and two
firearms were confiscated.

Otto said the cigarettes were probably destined to be sold to
shops and street vendors.

"It is through hard work and loyalty such as these police
members have displayed that we will conquer crime in this province," said
police provincial Commissioner Calvin Sengani. -- Sapa


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Bus fares go up AGAIN



By Violet Gonda
9 February 2007

Local and long distance bus fares have gone up again, barely three weeks
after the last increase. Our correspondent Simon Muchemwa who travelled from
Harare to Mutare on Friday, said the bus fares went up with no warning from
Z$15 000 to Z$20 000 and from Harare to Bulawayo from Z$30 000 TO Z$40 000.

He said the local fares in Harare went up from Z$1 500 to Z$2 000 making it
more difficult for workers. Most are already failing to afford bus fares to
travel to work.

The inflationary environment in Zimbabwe has resulted in prices of
essentials like fuel and basic commodities increasing on a regular basis
with no solution in sight. Transport operators say they are left with no
choice but to hike fares due to the high cost of fuel and spare parts.

Muchemwa said many people have been taking trains as they are cheaper but
the high demand has resulted in unscrupulous people hording tickets and
re-selling them at inflated prices. In Mutare a train ticket to Harare is
supposed to cost Z$5 300 (off peak) and Z$7 500 (peak) but is double the
amount on the 'black market.'

Analysts say the ever-increasing cost of living is taking its toll. Most
people complain their income doesn't cover the cost of transport to work.
This is one of the main factors for the tension that is mounting around the
country. Transport costs combined with power blackouts, water cuts and the
breakdown of essential services, have resulted in a wave of strikes across
the country's work force.

SW Radio Africa Zimbabwe news


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Drivers fail re-test exercise

The Zimbabwean

09-02-07
NEARLY 40% of public transport bus drivers whose driving skills have
been re-tested by the government in line with regulations introduced last
year have failed the exercise  a government official said.

Addressing journalists when announcing chief executive officers for Air
Zimbabwe, Zimbabwe National Road Authority and the Zimbabwe Traffic
Safety Council the Minister of Transport and Communications Chris Mushowe
said
government introduced the retesting of public transport drivers' skills
following a spate of road accidents, which claimed the lives of many
people last year and were attributed to human error.
"We are testing about 600 per week and out of those about 40%, are
failing.

"And that vindicates our suspicion that most of the drives that are
given to public transport are not the ideal, experienced and suitable
drivers,"
said Mushohwe.
Drivers who would have failed the exercise have their licences
withdrawn, as government fears such drivers could put the lives of people at
risk.
Minister Mushowe said the exercise was compulsory and all public
transport drivers were obliged to undergo re-examination of their competence
to
drive.

The minister said under the old system the people abused regulations by
handing over permits, after satisfying the ZSC and the Vehicle
Inspection Department as suitable and competent drivers, to other people
without
experience to drive safely on the country's roads.
Such anomalies, Mushohwe said, would only come to light after one
driver got involved in accidents.
Mushohwe announced  Ronmaldo Jokonya as the new substantive managing
director of ZTSC.Prior to his appointment Jokonya was the acting
executive director of ZTSC, since 2004.
He also announced the appointment of Francis Taurayi Hwekwete as the
new substantive chief executive of ZINARA he had also been acting. Peter
Chikumba was appointed chief executive of Air Zimbabwe taking over from
Captain Oscar Madombwe who had been acting since November 2005.


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Companies forced to donate towards Mugabe's birthday party

Zim Online

Saturday 10 February 2007

By Regerai Marwezu

MASVINGO - The ruling ZANU PF party has ordered companies in the southern
Masvingo town to donate funds towards President Robert Mugabe's birthday
celebrations later this month.

A letter signed by ZANU PF party's chairman for Masvingo, Samuel
Mumbengegwi, described companies that fail to donate "something" towards
Mugabe's birthday as "enemies of the state."

Mugabe will turn 83 on 21 February.

"We are appealing to you as companies to contribute something towards the
hosting of the celebrations which will be held in Gweru this year.

"As you know the president pronounced the policy of reconciliation at
independence and we hope the white community will also donate towards this
worthy cause.

"Those companies that fail to contribute are obviously enemies of the state
whose closure is imminent," read part of the letter which was seen by
ZimOnline.

A number of companies in Masvingo say they had received the threatening
letter with for example, some black-owned milling companies saying they were
told to donate towards Mugabe's birthday or face closure.

Mumbengegwi confirmed writing the letters to the companies but denied
threatening to close down those that defied directives to donate funds.

"It's just a matter of wording. I am appealing to companies to donate and
those that do not have anything will not be closed. The wording was done in
such a way that we try to get as much as possible even from enemies of the
state," said Mumbengegwi.

ZANU PF says it needs to raise about Z$300 million towards birthday
celebrations with at least the bulk of the funds coming from the corporate
sector.

Several companies and individuals mostly teachers in rural areas have in the
past complained of harassment by ZANU PF supporters after failing to donate
funds towards the party's programmes. - ZimOnline


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Living Costs For Zimbabwe Families Soar Again, Led By Education

VOA

By Jonga Kandemiiri and Carole Gombakomba
Washington
09 February 2007

The Consumer Council of Zimbabwe said Friday that a family of six now needs
some Z$460,000 a month to buy food and other basic commodities - an 87% rise
over the December level of Z$246,000 and several times the average salary.

The Consumer Council said education costs posted the biggest jump at 262%.
Sugar, bread, roller meal, clothing and transport also posted large gains.
Producers are still asking the government to let them raise prices on almost
everything, reflecting the entrenched hyperinflation which was last measured
at an annual 1,205%.

The council's manager for Matabeleland, Comfort Muchekeza, told reporter
Jonga Kandemiiri of VOA's Studio 7 for Zimbabwe that the surge in January
was mainly driven by speculation that the central bank would devalue the
currency.

Reserve Bank Governor Gideon Gono surprised speculators and economists alike
on January 31 when he said he would not ratify black market prices by
devaluing further. However, leaving the official rate at Z$250 to the U.S.
dollar has not stopped the parallel market from depreciating the currency
further to rates over Z$5,000.

Elsewhere, commuter omnibus operators continued to raise fares despite
arrests and insistent government warnings that such rate increases are
illegal. Commuters say they are facing significant weekly or even daily fare
increases.

Mutare residents said a one-way trip from the city to Sakubva, Hillside or
Marymount which used to cost Z$1,000 (US$4 at the official rate, 20 U.S.
cents at the parallel market rate) now costs Z$1,500.  A trip from the
suburbs of Chinhoyi into town has doubled in recent days to Z$1,000, leading
man residents to walk to work.

In Harare, bus fares change daily, but a typical one-way trip cost between
Z$1,000 and Z$2,500 depending on the distance and the operator, among other
factors.

Chief Economist Prosper Chitambara of the Labor and Economic Development
Research Institute in Harare told reporter Carole Gombakomba of VOA's Studio
7 for Zimbabwe that further fare increases are probably in store as
transport operators themselves face rising costs which they must pass on to
consumers.

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