The ZIMBABWE Situation Our thoughts and prayers are with Zimbabwe
- may peace, truth and justice prevail.

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Zim Independent

Gono/Mawere battle
Vincent Kahiya
A WAR of words is raging between Reserve Bank governor Gideon Gono and
Mutumwa Mawere over the nationalisation of the self-exiled tycoon's business
empire.

Mawere, a charismatic exponent of indigenisation, has launched a scathing
attack on Gono, accusing him of masterminding the take-over of his
businesses by government and of playing "Godfather" in illegal foreign
currency deals.

In an interview this week, Gono strongly rejected the charges and accused
Mawere of insincerity.

The Zimbabwe Independent can reveal that despite the current row, last year
Gono and Mawere were writing each other cozy e-mails in which they accused
the media of trying to drive a wedge between them.

The letters were prompted by an article published in this paper last June in
which Mawere attacked Gono for acting like a policeman, prosecutor and
judge. But despite reassuring missives between the two, their relationship
was souring in the wake of the accusations.

Mawere has alleged that relations with Gono became strained in 2000 after
the CBZ, which Gono headed at the time, purchased US$2 million from Mawere's
Shabani Mashava Mines (SMM) to procure fuel.

Mawere said he discovered that Gono was operating a slush fund to which he
was crediting proceeds from fuel deals. He alleges that Gono sought to use
his (Mawere's) name in "fraudulent" activities by indicating on a bank
document: "Pay Mawere/Hilary $10 million".

"Hilary" referred to SMM chief executive Hilary Munyati.

"I then contacted Gono to investigate what was at play in the transaction,"
said Mawere. "I met with him and showed him the document and asked him to
explain the brokerage account and why my name was on the document.

"Gono apologised," Mawere claimed, "for the use of my name but I demanded
that SMM be refunded the money diverted by CBZ to the brokerage account.
Initially Gono refused to refund the money. He finally relented and refunded
$10 000 000 to SMM in 2003. Hilary can confirm this because the cheque was
delivered to him."

The relationship between the two worsened after this episode.

"I think he thought I was going to expose CBZ's secret brokerage account
where billions of dollars could have been siphoned. When he became governor,
I knew it was going to be revenge time but I did not know he could go to
this extent," said Mawere.

Gono this week admitted that SMM availed US$2 million to CBZ.

He said at the time the deal was negotiated the exchange rate was US$1:$38
but the rate moved to US$1:$55 at the time the money was paid out. He said
when it came to paying Mawere the Zimbabwe dollar equivalent of the forex
availed, he demanded to be paid at the higher exchange rate.

"Mawere came to me fighting to be paid the difference," said Gono. "We had a
number of meetings with him and eventually I authorised that he be paid.
This is the reference you see on the documents that you have," Gono said.

"We were handling transactions for the procurement of fuel and like any bank
we charged a fee," he said.

"Every bank operates this. You can call it a commission account or slush
fund but there is nothing irregular here. Every bank operates such an
account. It is a technical account which if portrayed in a certain way can
project certain negativities."

Gono brushed aside as "madness" allegations that he operated a slush fund at
the CBZ whose proceeds he used to build a "100-bedroomed" mansion, as
claimed by Mawere, and to pay his cronies in government.

"I have not wanted to lend dignity by commenting on accusations that border
on madness. My request to those peddling such lies is for them to retreat to
the remaining corner of dignity and truthfulness," Gono said.

"I would challenge anyone telling these lies to swear by the Bible that this
is the situation," he said.

Mawere is an angry man after the loss of his companies, including the giant
asbestos miner SMM, to government. He is also wanted by police on charges of
externalising forex worth $300 billion. He blames Gono for his misfortunes.

Curiously, documents to hand show that Mawere in June last year wrote to
Gono disavowing a story in the Independent in which he attacked Gono. In an
emotional response written in Shona two days later, Gono expressed his
consternation at the contents of the article.

"Ndinotenda nemashoko ako mwana waamai. Ichokwadi kuti ndanga
ndichishushikana mupfungwa nokuedza kutsvara ndangariro dzangu kuti
ndinyatsoyeuka kuti patakatadzirana ndepapi asindichishaya kupaona kana
kuparangarira. (Thanks for your message. It is true that I have been
troubled and searching my thoughts to remember where we clashed but I
failed)," said Gono.

In the letter, Gono said the last time the two met Mawere wanted help from
the governor to reconcile him with two banks.

Gono also claimed that he had received information that Mawere was plotting
to harm his reputation in Zimbabwe and abroad.

But Mawere in his response said there were people trying to drive a wedge
between them.

"My concern remains that someone out there seems to enjoy separating us," he
said. "It is clear that someone is spinning for a benefit that is not in the
national interest."
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Zim Independent

Zim gets SA maize
Godfrey Marawanyika
ZIMBABWE has imported 13 187 tonnes of maize from South Africa, official
figures from Harare's biggest trading partner have revealed.

Latest statistics released on February 4 by the South African Grain
Information Service indicate that Harare has so far imported 11 830 tonnes
of white maize and 1 357 tonnes of yellow maize.

The figures reveal that Zimbabwe has imported more than half of the 23 018
tonnes of maize exported by South Africa to other countries.

Agricultural minister Joseph Made on Tuesday refused to comment on the
latest import data from South Africa simply saying "I wouldn't know", before
terminating the interview.

Although the government has persistently said the country does not need food
assistance, independent observers such as the World Food Programme and the
Famine Early Warning System Network (Fewsnet) have said at least five
million people are in need of food assistance.

In its January report Fewsnet classified Zimbabwe amongst priority-need
nations - namely Somalia, Eritrea and Ethiopia which need food assistance.

The report said that in Somalia there are about 1,8 million people in need
of food, Eritrea 2,2 million and Ethiopia 8,2 million.

"Staple food availability is declining as the market prices continue to
rise," the report said.

"High inflation and the Grain Marketing Board monopoly are exacerbating the
situation. While cereals are still available in urban areas, continuing
erosion of real incomes makes them unaffordable to many."

The government has since dismissed the Fewsnet report saying that it was
part of the hostile propaganda against the country by the US.
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Zim Independent

Mawere courts Mugabe over faltering fortunes
Vincent Kahiya
IN a desperate bid to save his business empire from expropriation by the
state, magnate Mutumwa Mawere last year wrote to President Mugabe seeking
dialogue on his predicament.

"I have written this note in the hope that dialogue can begin so that the
real issues of concern to Zimbabwe can be addressed," he wrote to Mugabe in
June last year.

But this attempt apparently failed to mollify the authorities as government
has since enacted legislation to take over Mawere's business empire spanning
the whole economy.

In a faxed letter seen by the Zimbabwe Independent, Mawere explained his
acquisition of Shabani Mashava Mines (SMM) and the effect of government's
attempt to take over the business.

Mawere said part of his problems emanated from a "misunderstanding" with the
"Midlands political leadership".

This provides useful evidence that his predicament is politically-motivated.

Government sources this week said there was a feeling in Zanu PF that Mawere
was not willing to share proceeds from his business empire despite the
assistance he received from government.

Mawere in the letter said his Africa Resources Ltd (ARL) acquired the
asbestos mines from T&N plc for US$60 million in a deal that was structured
offshore in 1996. He said ARL paid an initial US$37 million, leaving a
balance of US$23 million. The servicing of the debt was done through
facilities with three local banks until 1998 when the Reserve Bank withdrew
support to the financing banks.

Mawere said he sought funding from KBC Bank of Belgium with a government
guarantee "that you (Mugabe) played a pivotal role in facilitating". The
loan was paid up in 2002. Mawere said through the acquisition, SMM then
stopped paying annual dividends of up to US$15 million to T&N plc. But he
said since the acquisition, no dividends have accrued to ARL.

Despite servicing the loan, Mawere said SMM shares were still held by T&N
and that attempts to transfer them had "been a cause of frustration to me
personally".

He said politicians in the Midlands province believed that he had abandoned
plans to localise SMM, which is incorporated in the British Virgin Islands.

"A misunderstanding then occurred with the Midlands political leadership who
may be behind my current predicament," said Mawere in the letter.

"They are of the opinion that ARL has since acquired the shares from T&N plc
and my commitment to localise the company in the manner explained to you
have been abandoned," he said.
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Zim Independent

Sadc troika snubbed
Dumisani Muleya
SOUTHERN African Development Community leaders who planned to assess
electoral conditions in Zimbabwe last month were unable to proceed with
their mission when authorities in Harare proved reluctant hosts.

Diplomatic sources said this week that a Sadc troika comprising South
African President Thabo Mbeki, Lesotho Prime Minister Phakalitha Mosisili,
and outgoing Namibian President Sam Nujoma had been expected to meet
President Mugabe on January 17 in Harare in connection with the election,
but were unable to fulfil their mission.

"The Sadc troika leaders had been due to meet Mugabe on January 17," a
diplomatic source said. "It seems that the meeting was arranged when Mugabe
met with Mbeki during his visit to South Africa for a relative's wedding
early last month.

However, the trip was aborted when the leaders failed to secure a
confirmation from Harare, diplomats said this week.

Mbeki's spokesman Bheki Khumalo said yesterday he was not aware of the
abortive meeting.

Mugabe last month went to Tanzania to attend Zanzibar's independence
anniversary celebrations. He later hosted Tanzanian President Benjamin Mkapa
in Harare.

Mbeki, Mosisili and Nujoma currently comprise the troika of the Sadc Organ
on Politics, Defence and Security, which deals with elections in the region.
Mbeki is the chair.

Under Mosisili's chairmanship, the organ is said to have engineered the Sadc
principles governing democratic elections, which Zimbabwe is now struggling
to comply with.

The principles were adopted during a Sadc summit at Grand Baie in Mauritius
last August. The Sadc troika was tasked to visit Zimbabwe to assess whether
or not it was complying with the election guidelines.

The guidelines urge member states to "establish impartial, all-inclusive,
competent and accountable national electoral bodies" to run elections.

They also encourage Sadc nations to safeguard freedoms of association,
assembly, and expression as well as access to the public media by all
political parties.

Member states are also required to take "all necessary measures and
precautions to prevent the perpetration of fraud, rigging, or any other
illegal practices throughout the whole electoral process".

The Sadc principles have put Zimbabwe in the spotlight because of its skewed
political landscape and profoundly flawed electoral process.

After the failure of the Sadc troika leaders to secure an appointment with

Mugabe, Sadc then decided to send a technical team, including legal experts,
to assess the situation.

However, the team has also had difficulty obtaining the green light to come
to Zimbabwe. Sources said the team was expected to feature a pro-minent
South African lawyer, Kgomotso Ditsebe Moroka, who hasbeen honour-ed by
Mbeki's office for outstanding contributions in the "upliftment of society".

South African Foreign Affairs director-general Ayanda Ntsaluba said last
week the technical team was still awaiting clearance by Harare.

"Zimbabwe has not given clearance for the team and we are a bit concerned.
However, they have in the past given us the assurance and there is no reason
to believe that they will not be consistent now," he said.
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Zim Independent

Zanu PF, MDC mum on agendas
Ray Matikinye
THE two major contestants in national polls to be held in six weeks time
seem to have adopted a stance akin to boxers reluctant to come out of the
dressing room for a top-shelf fight.

Both Zanu PF and the Movement for Democratic Change (MDC) have yet to make
their manifestoes public for the electorate to make an informed choice when
they cast their votes. Zanu PF will market its wares when it officially
launches its campaign this weekend while the MDC has slated the unveiling of
its manifesto for next week.

The ruling party has resumed its charm offensive to spit and polish its
image six weeks ahead of elections with a number of vote-catching
initiatives.

"We cannot disclose our campaign strategy, especially in the wake of the MDC
announcing its participation in the election," chairman of Zanu PF's
election directorate, Elliot Manyika, told his party publication, The Voice,
last week.

Manyika said Zanu PF had various strategies that would be announced when his
party officially launches its election campaign. The manifesto is expected
to dwell on the "success" of the land redistribution programme, a
hard-to-achieve economic turnaround programme, and the glorification of past
successes in health and education.

Government has already begun dusting down several project blueprints,
stalled due to lack of funds because of economic stagnation over the past
five years.

A welter of uncompleted multi-billion dollar projects around the country
could make it difficult for Zanu PF to explain its latest election promises
to voters. The ruling party has spent an inordinate amount of time since the
2000 election attempting to convince its supporters that international
sanctions imposed for its failure to uphold human rights were the source of
national economic woes.

The giant Tokwe-Mukorsi dam, often touted as a panacea for drought-prone
Masvingo province's perennial water problems, needs an additional 114
million euros (about $890 billion) to complete. Completion of the dam will
kick-start the Nuanetsi irrigation estate spanning more than 100 000
hectares. A palm project at Rutenga started in 1982 turned into a dismal
failure despite abundant water for irrigation in the nearby Manyuchi dam.

Reserve Bank governor Gideon Gono appears to be a willing election agent for
the ruling party. Last week the RBZ took over the financing of the
Matabeleland Zambezi Water Project as government's major vote-catching
initiative in Matabeleland where a restive electorate has proved reluctant
to vote for Zanu PF in the recent past.

Zanu PF national chairman John Nkomo announced in a statement government's
plans to resettle 400 000 people in the next five years despite evidence
that the programme is making little headway in satisfying land hunger among
those who are genuinely landless. In the manifesto for the 2000 election
Zanu PF said it would resettle 150 000 households.

Both Zanu PF and the MDC have yet to announce their campaign strategy. An
MDC weekly presidential message has, however, provided some pointers along
what lines the opposition party will campaign.

"Our vision is that of a new Zimbabwe whose focus shall be on food security
and jobs. A new approach is urgently needed for the nation to move out of
the current humanitarian crisis. Our goal is to transform our political
culture, to roll the nation back to the ideals of the liberation struggle,
to extend basic freedoms and to put together all aspects of our nation into
a single unit," Morgan Tsvangirai says.

On the other hand, the MDC has not been able to combat the propaganda blitz
from the state-controlled media and shake off the often repeated
"imperialist puppet" tag which its opponent has seized on at every turn.

"Both Mugabe and Tsvangirai are imperialist puppets," says Paul Siwela of
the opposition Zapu Freedom Party which advocates a federal system of
government. "Mugabe is crying for Tony Blair to pay whites for the land
taken away from them by the government while Tsvangirai says he would return
land to the whites. Neither of them consider compensating the indigenous
blacks who were dispossessed without compensation in the first place,"
Siwela says.
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Zim Independent

ZABG mired in confusion
Shakeman Mugari
THE Reserve Bank of Zimbabwe (RBZ) has extended the curatorship of Royal and
Barbican banks for two months, raising further doubts over operations of the
Zimbabwe Allied Banking Group (ZABG).

The RBZ issued a statement yesterday announcing that Royal and Barbican's
curatorships had been extended to April.

This means the two banks are still under the management of their curators
despite another statement earlier indicating that the banks had been
absorbed into ZABG.

The extension indicates that the new bank project has not yet started. ZABG
has been entangled in controversy emanating from RBZ governor Gideon Gono's
failure to consult with the shareholders of the banks.

Gono himself issued two conflicting statements in his fourth monetary policy

statement on January 25.

"I am pleased to announce that Zimbabwe Allied Banking Group opened its
doors on the 24th of January, 2005 and the public are encouraged to carry
out normal banking business with this renewed national pride," Gono said.

He later made a u-turn in the same statement when he announced that the bank
would open its doors on January 31. "Even if it means opening on 31 January
at midnight, we will do so," said Gono.

The shareholders of Royal Bank have since taken the RBZ to court challenging
its ZABG project which they said was illegal. Trust Bank, which was also
swallowed by ZABG, has challenged the move. Barbican is understood to be in
the process of filing its own litigation against the central bank.

Trust and Royal are arguing that their assets were taken over without proper
consultation with the shareholders.
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Zim Independent

MP challenges Posa
Loughty Dube
A BULAWAYO High Court Judge on Monday reserved judgement in an application
by opposition MDC member of parliament Thokozani Khuphe challenging sections
of the Public Order and Security Act (Posa).

Khuphe in her court application cited the officer-in-charge of Law and Order
in Bulawayo as the first respondent, Police Commissioner Augustine Chihuri
as the second, and Attorney-General Sobusa Gula-Ndebele as the third.

Khuphe is seeking a declaration that the holding of private meetings does
not constitute an offence under Section 4 of Posa.

However, on Monday Bulawayo High Court Judge Nicholas Ndou reserved
judgement on the matter.

Members of the police Law and Order section arrested Khuphe two weeks ago
while she was having a private meeting with about 40 members of the MDC at
her restaurant which was closed that day.

Khuphe together with her supporters were taken to Bulawayo Central police
station where they were detained the whole day before being taken to court
the following day. They was remanded out of custody on $100 000 bail each.

Job Sibanda of Job Sibanda Associates, the lawyer representing Khuphe, told
the Zimbabwe Independent that they were still awating the handing down of
the judgement in the matter.

"We are still awaiting judgement but we made it clear that the holding of a
private meeting does not constitute a crime under Section 4 of the Public
Order and Security Act when we presented our heads of argument to Justice
Nicholas Ndou on Monday," Sibanda said.

In her affidavit to the High Court Khuphe argued that as a politician she
had the right to call such a private meeting without notifying the police.

"Whilst I admit having convened a meeting at my business place, this meeting
was by all accounts a private meeting. The meeting started off uneventfully
at the appointed time.

"It was whilst the meeting was deliberating on item "C" that members of the
police force barged into the building, forcing the door open. Pandemonium
ensued as some of the people thought they were under attack," reads Khuphe's
affidavit.

Khuphe charged that the current interpretation of Section 4 of Posa means
that Zanu PF should notify the police whenever it holds its weekly politburo
meetings.

Sibanda said Khuphe's meeting was not open to the public and Khuphe was only
addressing members from her constituency.

"She did not need to invite the police since the meeting did not compromise
public order in any way," he said.
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Zim Independent

Zimra gives individuals tax-collecting power
Shakeman Mugari
ZIMBABWEAN taxpayers are now obliged to withhold 10% of what is charged by
retailers or service providers who fail to prove that they pay tax to the
government, according to a new Income Tax Act amendment.

For example, a taxpaying company or individual buying a loaf of bread for $4
000 can ask the supermarket or retailer to produce a tax clearance
certificate. If the supermarket does not have one the customer is allowed to
withhold $400 which must then be remitted to the taxman.

In short, customers can deduct 10% if the supermarket cannot prove that it
has been paying tax to the government.

A Zimra statement issued mid-January allows the customer to act as tax
collector on behalf of the government.

The jury is still out on how this plan will work but that's how Zimra
intends to curb tax evasion.

Zimra also wants to use the same law to bring more people into the tax net,
especially informal sector traders.

"Please be advised that with effect from 1st January, 2005, section 80 of
the Income Tax Act (Chapter 23:06) has been amended such that all persons
who enter into contracts with quasi-government institutions and taxpayers
who are registered with the Zimbabwe Revenue Authority, are required to
submit evidence that they have furnished a return under section 37 of the
Income Tax Act," Zimra said.

"Those who fail to produce evidence that they have furnished such a return
will have 10% withholding tax deducted from the amount due to them."

A tax clearance certificate is proof that a company's tax payments are up to
date. The directive means that Zimra has given companies and even the man on
the street the right to collect tax on its behalf.

It is a deal based on the belief that every man is honest enough to remit to
Zimra what he will withhold from a supplier or retailer who fails to prove
that they have been paying tax consistently.

However, experts say the law cannot be practically applied. Economist and
accountancy expert Eric Bloch said the law would have to be further amended
to be applicable.

"It's not practical because that means if you buy a soft drink from a shop
that does not have a tax clearance, you have to deduct 10% of the price of
the drink. But one has to give that 10% to Zimra and that's impossible,"
Bloch said.

"The law would have to be amended again because it's just not practical," he
said.

The tax revenue figures have been on an inflation-induced increase over the
past few years but their real value has not improved.
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Zim Independent

Comment

Celebrating Zimbabwe's own goal

THERE were celebrations in the state media after government barred Cosatu
from entering Zimbabwe "without following procedures" last week. It was the
second such phoney achievement after the October debacle.
Never mind the mythical "procedures" that should have been followed. The
Cosatu delegation said they wanted to meet their counterparts in the
Zimbabwe Congress of Trade Unions. It dropped its earlier request to meet
civil society in deference to concerns by its alliance partner, the ANC.

All would have been fine had Cosatu not included in its itinerary the phrase
"fact-finding mission". That rekindled the paranoia that has become the
hallmark of the Zanu PF government since the illegal seizure of white
commercial farms and the "daylight robbery" of the 2000 and 2002 elections.

The maladroit action against Cosatu just ahead of the election ominously
reminded us of another self-inflicted wound - the expulsion of a European
Union observer mission led by Pierre Schori before the 2002 presidential
poll. That was the beginning of the major fallout with the international
community that haunts Zimbabwe to this day. More importantly, that action
marked the start of the violence that characterised President Mugabe's
controversial re-election and intensified Zimbabwe's isolation. The
consequences of government's actions in the Schori and Cosatu cases are
similar - bad publicity that could easily have been avoided and a lot of
sympathy for those fighting for human rights and free elections in Zimbabwe.

Recently government courted the same unsavoury publicity by trying to bar
British journalists who wanted to cover Zanu PF's so-called National People's
Congress. Once they were allowed into the country they shamed all those who
had lied about their intentions when their feared arrival turned out to be a
low-key media event. We are repeating the same error with Cosatu and the
country is manifestly not benefiting from the latest spat as people ask what
Zimbabwe has got to hide? Zimbabwe is going into the election with its image
sullied by its new tag as an "outpost of tyranny" and government is
apparently spoiling to prove that it deserves the label despite its
protestations to the contrary.

The spectre of Schori is refusing to go away. By refusing Cosatu entry into
the country, the government has already set benchmarks for the Zimbabwe
Electoral Commission on who not to invite to monitor elections. It is now
doubtful whether the commission will be independent enough to stand its
ground when it comes to inviting election observers.

The trouble is, whatever the dictates of propaganda to put on a brave face
and scoff at the whole world about sovereignty, Cosatu is in no mood for
plea bargaining and is getting all the limelight while Zimbabwe gets the
mud. South Africans who had been inclined to give President Mugabe's regime
the benefit of the doubt have been shamed into silence.

Needless to say, we didn't hear the same nonsense about "procedures" from
Pretoria when a ZCTU delegation decided to meet their Cosatu counterparts in
the South African town of Musina.
The question that now needs to be asked is whether after the fall of the
apartheid regime in South Africa in 1994 Zimbabwe has become the new bastion
of repression in the region calling for another grouping of Frontline States
to deal with a rogue neighbour? Has the region moved forward or regressed
since the advent of democracy in South Africa, or alternatively, since
Zimbabwe embarked on its lawless land reform programme five years ago?

Attempts by the state media to tar Cosatu by linking it to the United States
will not help redeem the country's image. Cosatu's progressive credentials
are too well established for all but the most gullible consumers of state
propaganda to swallow the line that it serves as a Trojan Horse of Western
imperialism.

It is significant to note that it is not only the perceived imperialists and
neo-colonial forces who have spoken out against the democratic deficit in
Zimbabwe. The African Union has now adopted a damning report on Zimbabwe
produced by the African Commission for Human and People's rights. We now
await the AU's verdict on the Zimbabwean election - if the continental body
is invited to monitor the polls.

The plain truth is there is an evident democratic shortfall that needs to be
addressed before the region can fully realise its potential. Army and
intelligence officers will be supervising polling, the voters' roll is a
mess, the public media is partisan while vast swathes of the country remain
no-go areas for the opposition.

Celebrating the expulsion of Cosatu is like celebrating an own goal. Yes,
Zimbabwe scored. But it was the wrong net!

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Zim Independent

IMF executive to meet over Zim
Godfrey Marawanyika
THE International Monetary Fund (IMF) executive board will on Wednesday
review Zimbabwe's position on debts to the fund.

The review will either result in Harare getting another stay of execution or
losing its membership to the Bretton Woods institution altogether.

Already, Zimbabwe has lost its voting rights because of failure to settle
debts on time.

The meeting comes at a time when relations between Harare and the
international financiers seem to be improving if comments by Abdoulaye Bio
Tchane, the director of IMF for Africa department, are anything to go by.

On his visit to Harare and subsequent meeting with President Robert Mugabe
in November last year, Tchane described his discussions with the Zimbabwean
leader as successful.

After the meeting Mugabe said that he was prepared to work with the fund on
condition that it did not dictate the terms on how Zimbabwe should run its
economic affairs.

On July 8 last year, the IMF board decided to postpone a recommendation for
compulsory withdrawal of Zimbabwe from the IMF, providing the country with
another chance to improve its co-operation with the fund in terms of payment
and economic policies.

By the end of last year Zimbabwe had increased its debt payment from a
quarterly amount of US$1,5 million to US$30 million by December. Of that
amount, US$22 million was paid to the IMF whilst US$8 million was paid to
the World Bank.
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Zim Independent

Violence hots up
Gift Phiri
A WAVE of political violence in Zimbabwe, underscored by an attack on people
leaving an opposition rally in Nyanga this week, is expected to intensify in
the final seven weeks of an already bitter legislative poll campaign.

Members of the Zimbabwe National Army allegedly assaulted 15 Movement for
Democratic Change (MDC) members attending a campaign rally addressed by a
party candidate, Douglas Mwonzora, in Nyanga last Sunday, the party said.

Hundreds of followers of President Robert Mugabe's Zanu PF reportedly
ambushed the opposition supporters after the rally, where the incumbent
opposition candidate vowed that the MDC would end a "reign of terror" if it
took over power.

The incident capped a week in which police arrested Zengeza MDC candidate
Godrich Chimbaira, militants attacked an opposition office in Bulawayo and
self-styled liberation war veterans killed a white farmer in Musonzowa,
Banket, and forced his family to flee their farm.

The opposition MDC poses the strongest challenge to Mugabe's bid to extend
his 25 years in power in the March 31 general election.

"The violence is likely to continue right up until the day before
 elections," Lovemore Madhuku, chairman of the National Constitutional
Assembly, a coalition of civic groups, said. "The MDC still has a million
opportunities to withdraw from this election. Zanu PF will continue using
violence in its bid to hold on to power."

On Sunday, Harare North MDC candidate Trudy Stevenson battled to hold her
first rally of the year in Hatcliffe Extension when more than 100 supporters
of Zanu PF invaded the venue, determined to disrupt the proceedings. While
the ruling party militants, believed to be Zanu PF candidate Nyasha
Chikwinya's supporters, attempted to attack Stevenson's sympathisers with
sticks and stones, police moved in swiftly and quelled the violence.

There were no injuries as there was a heavy police presence headed by
Officer Commanding Borrowdale, Chief Inspector Nhamo.

Two weeks ago Kuwadzana MP Nelson Chamisa and Thokozani Khuphe, the MP for
Makokoba, were arrested for holding meetings in their constituencies.

"MDC lawyer Alec Muchadehama said that Chimbaira was called to the
Chitungwiza Police Station on the pretext that some MDC youth had been
involved in violence. This turned out to be untrue and he was arrested on
arrival," MDC spokesman Paul Themba Nyathi said.

"The arrests of MDC officials and members are a clear indication to all the
people of Zimbabwe that Zanu PF is afraid of the MDC's growing popularity,"
Nyathi said. "Its flagrant use of the police force as a weapon to suppress
the people's party is unquestionable evidence of the crumbling Zanu PF's
growing fear of the people."

The opposition party accuses the governing Zanu PF of intimidation and
planning to rig the vote, criticisms echoed by the United States and
European Union which have imposed personal sanctions on Mugabe and his inner
circle.

At a rally on Monday in Umzingwane, Mugabe warned against what he claims are
attempts by Britain to gain a foothold in Zimbabwe through the opposition.

Meanwhile, the deposit charge for candidates wishing to contest the
forthcoming poll has shot up by a staggering 2 000% amid loud protests by
the main opposition which is charging that the move was a clear attempt by
the governing Zanu PF to bust the party's election budget and hamper its
campaign.

According to a Government Gazette published last Friday, it will now cost
$10 million to obtain a copy of the voters' roll and all candidates wishing
to contest the general election will have to fork out $2 million, an
increase of 1 000% and 2 000% respectively.

The new charges were "clearly an attempt to exclude our people from taking
part in the democratic process", said Nyathi. "The MDC is not as
well-endowed with resources as a party that helps itself to the contents of
the state coffers," Nyathi said in a reference to the ruling party.
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Zim Independent

More trouble for Chiyangwa
Gift Phiri
DEPOSED Zanu PF Mashonaland West chairman Phillip Chiyangwa - expected to
appear in court today for his routine remand hearing on espionage charges -
could find himself in further trouble amid reports this week that he could
be slapped with a further charge of externalising US$200 000 between 2001
and last year.

The Zimbabwe Independent heard yesterday that police in Harare were
preparing a docket on the fresh charges.

Chiyangwa's new charges follow the publication of a story in the Independent
two weeks ago revealing that the embattled entrepreneur moved US$200 000 out
of the country on the pretext that he wanted to invest in Namibia. However,
nothing came of the supposed investment, it was revealed, as Chiyangwa
reportedly withdrew the money which had been deposited in a Namibian bank.

The Independent this week heard that the police's Serious Commercial Crimes
Unit had prepared a docket on charges of externalisation and they were
rushing to complete investigations into the case before Chiyangwa's trial
for espionage opens.

The Independent was told that police were planning to go to Namibia to
interview a number of people who handled the transactions. Sources said
there was a possibility that the police would seek assistance from their
Namibian counterparts.

"The police would like to charge Chiyangwa while he is still inside," a
source said this week

The ostentatious Zanu PF tycoon is in remand prison awaiting a High Court
judgement on his bail application. Chiyangwa, who faces up to 20 years
imprisonment if convicted of breaching the Official Secrets Act, is expected
to appear at the magistrates' courts today for a routine remand appearance.

Zimbabwe's ambassador-designate to Mozambique, Godfrey Dzvairo, banker
Tendai Matambanadzo and Zanu PF external affairs director Itai Marchi, who
were facing similar charges, were on Tuesday jailed for a maximum of six
years each.
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Zim Independent

RBZ acts on capital flight
Godfrey Marawanyika
IN a bid to staunch investment flight from Zimbabwe, the Reserve Bank has
tightened regulations for firms that wish to pull out of the country so that
remittances are paid over a 20-year period instead of the current 72 months
time-frame.

The latest changes are with effect from last month.

Contained in an RBZ document titled, "Exchange Control Guidelines on Foreign
Exchange Transactions", the new regulations apply to companies that invested
in the country and are in the process of winding down their operations.

Current exchange control regulations state that disinvestment proceeds
arising out of post-May 1993 are freely remittable.

Investors may remit offshore any capital plus appreciation as well as
dividends in full, and when they accrue.

Under exchange control, capital appreciation is remitted through 4%,
six-year government bonds.

"Accelerated remittance is possible where there is localisation (15%) (sic),
discount (75%) to the company's net asset value and dividend savings," the
exchange control guidelines say. "Where the above is not met, the
remittances will be made through the 4%, 20-year government external bonds."

Over the past six years Zimbabwe has experienced massive capital flight
because of the hostile operating environment which was worsened by the
shortage of foreign currency.

The situation was exacerbated in 2002 by company and farm invasions that
generated a lot of international hostility for violating property rights.

President Robert Mugabe has declared 2005 "a year of investment".

The RBZ said to facilitate the pull-out, documentation such as the date when
the investment was made, details of how the foreign investment was funded as
well as receipts of funds in foreign currency through normal banking
channels, would be required.

Such companies are also expected to submit their latest audited financial
statements, an agreement of sale where the disinvestment is by way of sale
of shares, providing names of buyers and indicating whether the shares are
being disposed of "at par or at a premium or at a discount".

The RBZ said capital account transactions are still to be liberalised,
adding that all applications pertaining to the receipt or payment of capital
transfers/acquisitions/disposal of non-financial assets or transactions
associated with change of ownership must apply to the Exchange Control
Review Committee.

The committee considers and makes decisions on all applications relating to
the capital account.

The guidelines state that investors may only remit the initial "capital
outlay

plus appreciation".

On mergers and takeovers, the RBZ said information pertaining to issues such
as details of ownership structure or control of the merging entities should
be submitted to exchange control authorities.

The exchange control authorities must also be given details of the share
acquisitions to facilitate the merger and change of directorship, annual
reports of the merging entities, their market share, which should be
supported by a letter from the Anti-Monopolies and Competition Commission.

The RBZ said any offshore borrowings and cross-border investments will
require prior exchange control authority.

Analysts said that the new developments are meant to ensure that resources
remain in the country and stop capital flight, as investors will now have to
wait for 20 years to get their proceeds.

"This might result in other potential investors adopting a wait and see
attitude but the directive is also meant to ensure that the country does not
release foreign currency to pay firms that are pulling out of the country,"
said a bank economist who requested anonymity.
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Zim Independent

MDC between a rock and a hard place

Dumisani Muleya
THE opposition Movement for Democratic Change (MDC)'s decision last week to
contest the March general election after initial threats of a boycott
elicited mixed reactions from political analysts and civil society leaders.
Whilst some analysts said the controversial decision was pragmatic under the
prevailing circumstances, others said it showed the MDC was in a sticky
situation.
The MDC suspended participation in polls in August last year pending the
implementation of the Southern African Development Community (Sadc)
principles on democratic elections.
The Sadc elections protocol urges member states to "establish impartial,
all-inclusive, competent and accountable national electoral bodies staffed
by qualified personnel, as well as competent legal entities including
effective constitutional courts to arbitrate in the event of disputes
arising from the conduct of elections".
The regulations also encourage Sadc countries to safeguard freedoms of
association, assembly, expression and campaigning, as well as access to the
media by all political parties.
Member states are also required to take "all necessary measures and
precautions to prevent the perpetration of fraud, rigging, or any other
illegal practices throughout the whole electoral process".
The Sadc principles put Zimbabwe in a tight spot because of its skewed
political landscape and flawed electoral process ahead of the forthcoming
election set for March 31.
Zimbabwe's 2000 parliamentary and 2002 presidential elections were
hotly-disputed amid allegations of violence, vote-rigging, and fraud. The
election results led to still ongoing legal battles.
The controversy over the electoral outcome also led to the country's
isolation from the international community. This further worsened the
current economic crisis, underlined by a political impasse and a sea of
other troubles besetting the nation.
In a bid to comply with the Sadc protocol, the ruling Zanu PF recently
railroaded two pieces of legislation through parliament to govern the
electoral process.
The legislation resulted in the establishment of the Zimbabwe Electoral
Commission (ZEC), which will run all elections, and introduced new voting
procedures. Voting will now be done in one day instead of two; translucent
ballot boxes will be used and counting of votes will be done at polling
stations and not the national command centre, which critics say is the
rigging headquarters.
Despite the introduction of the ZEC, a statutory and not constitutional
body, the old electoral agencies still remain and will effectively run the
poll.
The discredited Registrar-General of Elections' Office, Elections
Directorate, Delimitation Commission and Electoral Supervisory Commission
(ESC) will still be involved.
Analysts say the ZEC, whose claim to being autonomous is questionable, is
susceptible to political pressure and manipulation because Zanu PF can
always amend the law as and when it wants to ensure the body fulfils its
interests.
Initially, the ZEC was supposed to be a constitutional body to replace the
ESC but Zanu PF failed to effect the change when the MDC proved
uncooperative.
This meant that Zanu PF proceeded unilaterally to introduce the ZEC and
define its mandate without adequate consultation. The body becomes a Zanu PF
creation instead of being a parliamentary initiative whose legitimacy is not
in doubt.
Although the MDC was involved in the appointment of members of the ZEC, most
of them are widely seen as Zanu PF cronies. In particular it has voiced
protests about its chairman, Justice George Chiweshe.
MDC leader Morgan Tsvangirai said the ZEC was facing a litmus test of
impartiality.
"The commission has an intricate task to separate itself from past practices
and show that a fresh electoral management system is possible," he said this
week.
"That can only happen if the commission discharges its duties without fear
or favour. The commission needs to check on the impact of Zanu PF's
bureaucratic dominance on the management and administration of the
 election."
While the MDC gives the commission, which operates within the broad hostile
political environment, the benefit of the doubt, it also runs the risk of
getting trapped in the convoluted elections tangle.
Although the opposition is on record as saying the reforms are cosmetic and
piecemeal, it still wants to participate in a flawed process - for the third
time!
But for practical purposes nothing has changed. The MDC admits in its Sadc
principles compliance checklist dossier that there is little, if any, real
observance of the regional bloc's election protocol.
So why then did the MDC decided to enter the election race? The party said
the problem was that it was in a Catch-22 situation: damned if it did and
equally damned if it didn't.
Analysts differed on the decision taken. Some said boycotting the
election would have simply rendered the party completely irrelevant and put
it under threat of disintegration.
Others said by entering the poll the MDC showed it had learnt and forgotten
nothing from the recent history of contesting rigged elections, which only
serve to lend a veneer of legitimacy to stolen victories. Critics say both
arguments sound realistic and sustainable, but one should surely be more
realistic than the other.
University of Zimbabwe political analyst Professor Heneri Dzinotyiwei said:
"It was the only option they (MDC) had. But I think Zanu PF will have an
edge in the election because of the skewed playing field."
National Constitutional Assembly chairman and commentator, Lovemore Madhuku,
said the MDC decision was as "shocking" as it was unhelpful. He said the MDC
had fatally shot itself in the foot through the unviable resolution.
"It was a very unfortunate decision. I'm shocked that the MDC would take
such an irresponsible move," Madhuku said.
"Contesting the election under protest will not help anything except to
legitimise a flawed electoral process. The MDC will lose the election
because of the current hostile political conditions."
Madhuku said the decision was ridiculous and a mockery of the MDC's initial
position.
"What has changed now in terms of the situation on the ground? Nothing. The
MDC decision is a just mockery of their initial principled position," he
said.
"Actually, the MDC seems to be now chickening out of the real struggle for
fundamental democratic reforms in Zimbabwe."
Asked what a boycott would achieve, Madhuku said the search for a solution
to the current crisis should be broad and holistic.
"We have always said that the MDC can't win any election under these
conditions," he said.
"If we were in the MDC position we would simply tell (President Robert)
Mugabe that we will not contest the election until you create a conducive
environment. We will not legitimise an election which is flawed and will
possibly be rigged."
Madhuku's solution: "Zimbabwe needs a fundamental constitutional review
first and foremost. That will deal with electoral framework issues and other
broad contested issues. It will also address critical issues of governance,
transparency and accountability."
Madhuku said undemocratic arrangements such as Zanu PF's in-built and
guaranteed 30 seats would also be scrapped in levelling the playing field.
"At the moment how does the MDC win an election when Zanu PF starts off with
30 seats already in the bag? They will obviously lose and then what? It's
just a nonstarter!"

Economic curse of faulty telecoms
MANY are the causes of Zimbabwe's economic morass. They range from the
government's near-total destruction of agriculture, which has always been
the country's foundation of its economy, to its equally foolhardy and
catastrophic alienation of the majority of the international community.
They include the dissuasion of international tourism to patronise Zimbabwe,
achieved through the prolonged breakdown in law and order. They also include
the government's grossly excessive regulation of the economy, which is a
great deterrent to investors.
The economic distress of the last seven years has also been attributable to
almost worldwide perceptions (not without foundation) that Zimbabwe is
governed by a dictatorship, instead of being a genuine democracy. The
absence of absolute democratic freedom is a great demotivant to
international investment and trade.
Inflation too has played no small role in bringing the economy to its knees,
with the critical upsurge to hyperinflation levels having been almost wholly
due to fiscal profligacy and pronounced corruption.
In turn, all those and many other factors have combined to stimulate a
massive "brain drain" from Zimbabwe, with the result that the economy is
severely lacking many of the essential skills required to keep the wheels of
commerce and industry, agriculture, mining, tourism and other economic
sectors turning.
But these are not only contributants to economic decline. They also
contribute to the intense difficulty of reversing that decline. There are
numerous other catalysts of the immense collapse of the economy, and some of
those are also among the very great barriers to be overcome if economic
wellbeing is to be restored.
One of the foremost of the obstacles that needs to be surmounted is the
overwhelming inadequacies of Zimbabwe's telecommunications, which have
become the curse of almost all that are economically active and who strive
to revitalise their operations to viable levels.
Almost the only facet of Zimbabwean telecommunication services that operates
with any degree of reasonable reliability is the belated rendition to
subscribers of accounts for payment for the abysmal services provided, and
the disconnection of service if such accounts are not paid timeously
(usually being necessary within 24 hours of receipt of the account, either
due to delayed dispatch of accounts, or due to tardy mail delivery
services).
Virtually nothing else within the telecommunication services works
effectively.
Making a subscriber trunk dialling call from any place in Zimbabwe to any
other, or further afield within the region or internationally, is a
Herculean undertaking. Invariably, an engaged signal is forthcoming after
dialling only area code and the first three digits of the required
destination. This can recur endlessly, and especially so during business
hours.
The result is that every user of the telephone wastes many hours with
constant redialling, the economic value of which is unquantifiable on a
national basis, but must be immense. Billions and billions of dollars must
be forfeit annually as a consequence of the prolonged endeavours necessary
to make telephone calls, and there are also very numerous examples of
business orders and contracts lost due to delayed telephonic communications.
Of course, the problem is not confined to the services of the state's
telecommunications' parastatal, TelOne, for to varying degrees it applies to
the cellular telephone services available in Zimbabwe as well. That is
particularly so of a publicly listed cellular telephone service which, in
its early days, provided its subscribers with a spectacularly effective
service. Regrettably, that is something of the past.
Invariably any attempt now to make a call on that network results in a
signal on the screen "network busy" or a metallic female recorded voice
claiming that "the number you have dialled is no longer in service",
although it is irrefutable that such number is in service, save that the
network is denying access to it, and denying it any access to other
subscribers. Over the last three years there have been repeated apologetic
advertisements in the press from that network, stating that it would be
undergoing an upgrade of its telecommunications' infrastructure but,
instead, the service is going continuously from bad to worse.
One must also ponder on the extent to which its profits are swollen by the
inadequacies of its services for, although it must undoubtedly be losing
considerable revenues due to unconnected calls, equally when a subscriber is
fortunate enough to achieve a connection, his call will invariably be
terminated precipitously before expiry of the time period which correlates
to the minimum charge.
All too often, it takes at least three calls to conclude one short
conversation, although those three calls will be spaced well apart, due to
the network deficiencies. However, ultimately the network company benefits
from the charges for three calls whereas there should (based upon aggregate
duration of the calls) only have been the minimum charge for one.
In fairness, the economic losses are not solely due to the inadequacies of
the telecommunication system or the maintenance of those systems. They are
exacerbated by the prolonged delays that invariably characterise requests
for landline repairs.
It appears that, as a general rule, it takes at least a fortnight, and often
very much longer, for TelOne's maintenance crews to respond to a breakdown
call. Usually the excuse for the extended reaction time is a lack of
transport.
Not only is the subscriber greatly inconvenienced, but the supposed service
provider sustains a loss of income, in the absence of telephonic traffic
while service is out of commission. However, that is not always the case,
for there are instances where despite there being no service for as many as
four or more months, TelOne unhesitatingly continues to charge line rental.
That is not completely different to the cellphone networks, who charge full
monthly rental even when one receives one-tenth to one-quarter of the
required service - the remainder of the subscriber's time being
frustratingly and fruitlessly expended upon recurrent redialling of required
numbers, without achieving connection.
If Zimbabwe does not rapidly enhance its telecommunications to provide
reliable and effective continuing service, all the endeavours of the
government and the Reserve Bank to turn the economy around will be hampered,
and the turnaround reduced - for poor communications are not an investment
incentive, and fuel losses of trade opportunities, while occasioning
tremendous losses of valuable, irreplaceable time of the scarce skills
resource still available in Zimbabwe. Similar consequences will partially
also arise if Zimbabweans do not adapt to constructive usage and
communication of telephone services.

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Zim Independent

Eric Bloch Column

      Economic curse of faulty telecoms

      MANY are the causes of Zimbabwe's economic morass. They range from the
government's near-total destruction of agriculture, which has always been
the country's foundation of its economy, to its equally foolhardy and
catastrophic alienation of the majority of the international community.
      They include the dissuasion of international tourism to patronise
Zimbabwe, achieved through the prolonged breakdown in law and order. They
also include the government's grossly excessive regulation of the economy,
which is a great deterrent to investors.
      The economic distress of the last seven years has also been
attributable to almost worldwide perceptions (not without foundation) that
Zimbabwe is governed by a dictatorship, instead of being a genuine
democracy. The absence of absolute democratic freedom is a great demotivant
to international investment and trade.
      Inflation too has played no small role in bringing the economy to its
knees, with the critical upsurge to hyperinflation levels having been almost
wholly due to fiscal profligacy and pronounced corruption.
      In turn, all those and many other factors have combined to stimulate a
massive "brain drain" from Zimbabwe, with the result that the economy is
severely lacking many of the essential skills required to keep the wheels of
commerce and industry, agriculture, mining, tourism and other economic
sectors turning.
      But these are not only contributants to economic decline. They also
contribute to the intense difficulty of reversing that decline. There are
numerous other catalysts of the immense collapse of the economy, and some of
those are also among the very great barriers to be overcome if economic
wellbeing is to be restored.
      One of the foremost of the obstacles that needs to be surmounted is
the overwhelming inadequacies of Zimbabwe's telecommunications, which have
become the curse of almost all that are economically active and who strive
to revitalise their operations to viable levels.
      Almost the only facet of Zimbabwean telecommunication services that
operates with any degree of reasonable reliability is the belated rendition
to subscribers of accounts for payment for the abysmal services provided,
and the disconnection of service if such accounts are not paid timeously
(usually being necessary within 24 hours of receipt of the account, either
due to delayed dispatch of accounts, or due to tardy mail delivery
services).
      Virtually nothing else within the telecommunication services works
effectively.
      Making a subscriber trunk dialling call from any place in Zimbabwe to
any other, or further afield within the region or internationally, is a
Herculean undertaking. Invariably, an engaged signal is forthcoming after
dialling only area code and the first three digits of the required
      destination. This can recur endlessly, and especially so during
business hours.
      The result is that every user of the telephone wastes many hours with
constant redialling, the economic value of which is unquantifiable on a
national basis, but must be immense. Billions and billions of dollars must
be forfeit annually as a consequence of the prolonged endeavours necessary
to make telephone calls, and there are also very numerous examples of
business orders and contracts lost due to delayed telephonic communications.
      Of course, the problem is not confined to the services of the state's
telecommunications' parastatal, TelOne, for to varying degrees it applies to
the cellular telephone services available in Zimbabwe as well. That is
particularly so of a publicly listed cellular telephone service which, in
      its early days, provided its subscribers with a spectacularly
effective service. Regrettably, that is something of the past.
      Invariably any attempt now to make a call on that network results in a
signal on the screen "network busy" or a metallic female recorded voice
claiming that "the number you have dialled is no longer in service",
although it is irrefutable that such number is in service, save that the
network is denying access to it, and denying it any access to other
subscribers. Over the last three years there have been repeated apologetic
advertisements in the press from that network, stating that it would be
undergoing an upgrade of its telecommunications' infrastructure but,
instead, the service is going continuously from bad to worse.
      One must also ponder on the extent to which its profits are swollen by
the inadequacies of its services for, although it must undoubtedly be losing
considerable revenues due to unconnected calls, equally when a subscriber is
fortunate enough to achieve a connection, his call will invariably be
terminated precipitously before expiry of the time period which correlates
to the minimum charge.
      All too often, it takes at least three calls to conclude one short
conversation, although those three calls will be spaced well apart, due to
the network deficiencies. However, ultimately the network company benefits
from the charges for three calls whereas there should (based upon aggregate
duration of the calls) only have been the minimum charge for one.
      In fairness, the economic losses are not solely due to the
inadequacies of the telecommunication system or the maintenance of those
systems. They are exacerbated by the prolonged delays that invariably
characterise requests for landline repairs.
      It appears that, as a general rule, it takes at least a fortnight, and
often very much longer, for TelOne's maintenance crews to respond to a
breakdown call. Usually the excuse for the extended reaction time is a lack
of transport.
      Not only is the subscriber greatly inconvenienced, but the supposed
service provider sustains a loss of income, in the absence of telephonic
traffic while service is out of commission. However, that is not always the
case, for there are instances where despite there being no service for as
many as four or more months, TelOne unhesitatingly continues to charge line
rental.
      That is not completely different to the cellphone networks, who charge
full monthly rental even when one receives one-tenth to one-quarter of the
required service - the remainder of the subscriber's time being
frustratingly and fruitlessly expended upon recurrent redialling of required
numbers, without achieving connection.
      If Zimbabwe does not rapidly enhance its telecommunications to provide
reliable and effective continuing service, all the endeavours of the
government and the Reserve Bank to turn the economy around will be hampered,
and the turnaround reduced - for poor communications are not an investment
incentive, and fuel losses of trade opportunities, while occasioning
tremendous losses of valuable, irreplaceable time of the scarce skills
resource still available in Zimbabwe. Similar consequences will partially
also arise if Zimbabweans do not adapt to constructive usage and
communication of telephone services.
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Zim Independent

Muckraker

Mugabe's Masvingo birthday present

ZANU PF and its supporters are clutching at straws to win legitimacy in the
next election. And they are having to search in all the corners for some
positive comment to prove to the world that they are ready to embrace
civilisation.
This week it was Lowani Ndlovu who landed the elusive gem from South African
government spokesperson Joel Netshitenzhe.
Commenting on the political situation in Zimbabwe, Netshitenzhe said there
were some "positive developments that give us hope that Zimbabwe should come
as close as possible to the protocols that have been agreed by Sadc".
This was twisted by Lowani as a ringing endorsement of the changes
government has made ahead of the election in March. But Zimbabweans and the
world will be looking for concrete steps, not cosmetic changes, to accept
that there has been change at all. Zimbabweans want a return to civilisation
so that they can choose their leaders without being intimidated by Zanu PF
militia and roguish war veterans.
In any case, if everything is normal and Zimbabwe is a peaceful country why
is the Zanu PF government so terrified of a Cosatu visit? What do they have
to hide?

Head of the Zimbabwe Electoral Commission Justice George Chiweshe should be
wary of making tendentious statements about the forthcoming election. He
reportedly told the Sunday Mail that they are ready for the poll because the
"machinery has always been in place".
The role of his commission is to be an impartial arbiter in the election.
Nobody has faith in the system that has been used by Zanu PF to rig the
election over the years. Nobody trusts the registrar-general's office and
the way it has handled the voters' roll.
Chiweshe claimed there was "nothing new about such elections" and there was
enough time for his commission to get everything right.
We hope he is not condemning the commission he chairs to irrelevance before
it has even started its work. We thought the idea of an independent
commission was proposed precisely because there were glaring inadequacies in
the current electoral mechanisms!
It's time to get real and address those concerns instead of endorsing a
system that even Zanu PF itself acknowledges is fraught with shortcomings.
Otherwise there would have been no need to ask parliament to pass an Act to
deal with these issues.

Former Information minister Chen Chimutengwende has a dream. He wants to
build a nirvana out of Africa's checkered history through what is called the
United New Africa Global Network. In a half-page advert in The Voice this
week, Chimutengwende says they plan to transform Africa into a united
socialist state that will be "powerful, anti-racist, anti-capitalist,
anti-imperialist, socialist, independent, self-reliant, incorruptible,
prosperous and democratic".
This destination will be achieved through pan-Africanism and socialism
through class struggle as advocated by Kwame Nkrumah of Ghana.
We wonder if Chimutengwende has ever heard of the fall of the Berlin Wall in
1989 and the beginning of the end of the great socialist experiment in the
Soviet Union. Why does he believe Zimbabwe needs to reinvent the socialist
wheel when even countries such as China are embracing capitalism and
free-market economics?
We also wonder who is funding this anachronistic outfit. Socialists are not
known for their generosity unless it is the supply of firearms.

The Voice's columnist Don Muvhuti is evidently part of this threadbare
legacy. He appears confused about which MPs are Zanu PF and who belong to
the opposition MDC.
In an article titled "No room for spies in parliament" in this week's issue,
Muvhuti said in an effort to recolonise Zimbabwe, imperialists had created
an opposition to serve their interests. They had created spies under the
guise of democracy and freedom of expression, he claimed.
It is our duty as society, declared Muvhuti, "to prove the enemy wrong by
voting MDC out of the next parliament. The moral we will be getting across
is that being a parliamentary opposition does not give the persons involved
the freedom to indulge in espionage and treasonable activities against their
society. That sort of disloyalty to society can be punished with a complete
ban at the ballot box."
Does he know something we don't? Which party has three of its officials in
prison for selling state secrets and two others awaiting trial? Does one
become an opposition MP as soon as he commits a crime and is facing trial?
The following day the Herald led with a story on Philip Chiyangwa losing his
chairmanship of Mashonaland West province because of the spying charges that
he is facing. We hope Don Muvhuti had the chance to read it and get his
facts right.

We should be forever grateful to the Herald for the subtle disclosures,
though inadvertent, of the ruling party's modus operandi in the run-up to
the election. On Tuesday the paper ran a story titled "Zanu PF blasts Tutu"
in which it was alleged Zimbabwe's enemies were out in full force to
discredit the March election. Among them was Archbishop Desmond Tutu of
South Africa who said Zimbabwe made a mockery of the continent's commitment
to good governance and freedom.
For his pains, he got a rebuke from Zanu PF mandarin Didymus Mutasa who said
Tutu was "a vassal of imperialism". Cosatu was also among those accused of
defending "white interests".
By attacking Tutu and Cosatu like this, Mutasa is simply holding his party
up to public ridicule in South Africa. It is a measure of how isolated Zanu
PF leaders are that they can't grasp that.
When US Secretary of State Condoleezza Rice stated the obvious - that
Zimbabwe was an "outpost of tyranny" - there was an
outbreak of contrived nationalist hysteria. Zimbabwe was under attack ahead
of the election, we were told.
One of the "attacks" on Zimbabwe by the US was the claim that
half the country's population would need food aid in the next two months.
That stirred the wrath of unnamed "analysts" who said the US government was
making a "devious attempt" to force the Zimbabwe government to allow
non-governmental organisations to distribute
food in the rural areas, "a move aimed at helping the MDC to penetrate these
traditional Zanu PF strongholds".
What further proof does one need to show that some places in Zimbabwe are
no-go areas for the opposition because they are considered Zanu PF
strongholds? So communal lands have become "restricted areas" the way they
were during the war? And the opposition can't campaign there because the
Zanu PF militia and war veterans have been stationed there as enforcers to
ensure NGOs don't penetrate these areas on behalf of the MDC. We need that
detail for the record.

Every day brings a new revelation about Zanu PF's inability to understand
the requirements of democracy.
On Monday the Herald carried a story headed "Reclaim Masvingo Central". The
exhortation came from the chairman of the 21st February Movement, Walter
Mzembi, who said Zanu PF members in the province should join forces and
wrest the seat from the MDC.
He said the party had an obligation to win back Masvingo Central as "a
worthwhile birthday present" for the president.
Nothing here about improving service delivery or benefiting the electorate.
The president had on many occasions expressed "dismay" over the loss of the
seat, we are told, and wanted it "reclaimed". Reclaiming Masvingo would
"fulfil the president's long-held desire that Masvingo retain its one-party
status that it held in the 1980s", Mzembi said.
"Zimbabweans were blessed to have a leader like President Mugabe," the
fawning Mzembi gushed, "whose legacy of economically empowering his people
by defending national sovereignty were ever going to rank him as one of the
greatest African leaders in history."
Is Mzembi aware that per capita GDP is lower than it was in 1975? What sort
of empowerment is that? And we were interested to see that he donated $15
million at a Zanu PF fund-raising dinner held in Masvingo over the weekend.
ZFTU vice-president Joseph Chinotimba pledged $2 million.
This is a profitable way of doing business, isn't it? Zanu PF sets up an
organisation claiming to represent workers, permits it to go on a lawless
rampage extorting money from companies, and then receives the proceeds as a
"donation" to its election fund.
Despite talk of one-party domains, Zanu PF has of late been frantically
advertising its "compliance" with the Mauritius principles on the conduct of
elections. At every opportunity it flags its adherence to the Sadc protocol.
So here's a challenge. Let's see President Mugabe go on TV to give an
assurance that everybody's vote is their secret; that contrary to what his
militias have reportedly been telling susceptible rural voters, Zanu PF does
not have any means of telling how people voted. And there will be no
penalties for communities where the MDC does well.
We're sure Zanu PF will have no difficulty taking up that challenge given
its much-advertised commitment to the Mauritius terms! And when the Sadc
technical team does finally get the green light to come and test compliance,
it should look at the Herald's editorial on Monday, "Voters won't be fooled
by MDC", to see the extent of abuse of the public media by the incumbent
party.

On the same page somebody called Maria Kwindi confessed to spending six
months in the UK "mixing and socialising" with other Zimbabweans.
That evidently included a little freelance spying on behalf of the ruling
party. She reports that MDC meetings are poorly attended and that it was
hypocrisy for the MDC to want postal ballots when Zanu PF leaders were
banned from the UK and therefore couldn't campaign there.
She doesn't mention that MDC leaders are banned from campaigning in many
parts of Zimbabwe. Nor Homelink's attempts to take money off Zimbabweans in
the UK while they are denied the right to vote for those who will make use
of their funds!

We were intrigued by Joel Netshitenzhe's reference to the technical team
that Sadc was "planning" to send to Zimbabwe ahead of the election. Is that
the same technical team that has been cooling its heels over the past few
weeks while Zimbabwe's leaders try to make up their minds whether they want
it here or not?
The Herald's report on Tutu, referred to earlier, omitted the
following observation by the archbishop: "I don't know what happened there,"
he said about Zimbabwe, "because I'd always held President Mugabe in the
highest possible regard, until something peculiar happened and I don't know
what it is. And we've got to say what is happening there is not acceptable.
Say it in as friendly a manner as possible, but it is some thing we should
say for the sake of all of us. It is not acceptable not to allow freedom of
association, freedom of speech."
We know what "happened there". It was the prospect of political mortality
after the 2000 electoral
defeats. And have you noticed the mind-insulting way the state media talks
about the "protest votes" of that year as if people are not
allowed to protest against the way the country is being run when they vote!
Let us also take this opportunity to record the obstacles which Tobaiwa
Mudede is helpfully putting in the path of people trying to register as
urban voters. Is he constitutionally entitled to make it so difficult for
people to register?
No wonder that technical team is being kept waiting. Their first port of
call, the voters' roll, is being nicely stitched up, just as it was in 2002,
while they are waiting to hear if they will be admitted.

After ANC secretary-general Kgalema Motlanthe's remarks about the "anomaly"
of MDC officials having to seek police permission to communicate with their
followers, it should be interesting to see what he thinks of 13 MDC members
reportedly being arrested and fined because deputy Foreign Affairs minister
Abednico Ncube thought he was "insulted" when they gave him the open-palm
salute.
Nothing better illustrates the abuse of the law to thwart the opposition's
right to free expression. By the way, apart from ordering the arrest of MDC
members, what exactly does Abednico Ncube do?
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Zim Independent

New fuel body emerges
Chris Goko
REUBEN Marumahoko, Zimbabwe's deputy Energy minister, says he is confident
of a more stable and restructured fuel industry after overseeing the
creation of a unified fuel procurement agency, the Petroleum Marketers of
Zimbabwe (PMZ).

PMZ was formed out of the recent merger of the Indigenous Petroleum
Marketers Group and the mainly multinational-dominated Petroleum Marketers
Association of Zimbabwe.

The merger was carried out to obtain some measure of parity in fuel
procurement and distribution, and this is part of government's efforts to
stabilise the oil sector.

Marumahoko said that although his ministry was greatly involved in setting
up PMZ, it would maintain its independence and they had since approved a
13-member board for the new consortium.

"I am sure it (PMZ) will succeed because these are the big players in the
sector," he told businessdigest this week.

"We encouraged them to constitute a board and we are happy with the outcome.
In the selection process, we looked at experience and other relevant
aspects."

Gordon Musarira, the Country Petroleum proprietor, chairs the PMZ board,
which has six key sub-committees given as administration, allocation, audit
and inspectorate, finance and procurement, legal and policy as well as
special interest.

Among the key committees, Total's Stan Hatendi heads administration with
Chris Kwaramba of Pierefux Petroleum on the audit and inspectorate
committee, Masimba Kambarami serving the legal and policy side and Wedzera's
Eric Nhodza heading the finance and procurement committee.

Royal Oil's Chris Pasipamire is vice-chairman of PMZ while Robert Zhuwawo of
Temisa has been assigned to the special interest committee, which presumably
deals with empowerment and other pertinent issues.

PMZ has since appointed Muzi Ukwela as chief executive and Marumahoko said
he was happy that the group had managed to bring into the country
"relatively cheaper" fuel as well as maintain steady flows of the product.

He said that were it not for insufficient foreign cash resources, whereby
the sector was getting less than US$10 million weekly, the fuel supply
situation could easily get back to the pre-1999 level.

Zimbabwe consumes US$40 million worth of liquid fuels monthly, but weekly
fuel allocations at the Reserve Bank of Zimbabwe's foreign currency auctions
have been averaging US$6-7 million.

Marumahoko stressed that government had no intention of delving into fuel
procurement any more, meaning a proposed joint venture between private oil
companies and the National Oil Company of Zimbabwe (Noczim) is imperilled.

"Government has no role to play in fuel procurement (for national
retailing)," he said, adding fuel companies should have enough confidence to
go it alone.

The deputy minister said Noczim would remain a bulk procurer for state
departments and strategic stock holdings, and the level at which government
was also involved in the fuel sector related to provision of storage
facilities at its Msasa depot.

Marumahoko also said they had no intention to cancel as many as 100
operating licences because government was happy "with the number of licences
out there".

Meanwhile, a three-month tender and fuel supply system has been adopted
albeit on a pilot basis.

According to Marumahoko, PMZ had identified one bulk procurer who would
supply the country with the product. The tender could be reviewed at the end
of the three-month period.

He said the PMZ and government were, however, hopeful of extending the
supply period to half-a-year in order to put in place a more predictable and
sustainable supply arrangement.

He stressed though, that the basis of awarding lengthy tenders was cheaper

prices, proven competency in fuel supply and ability to work with the
Zimbabwean authorities.
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Zim Independent

Zim crisis spurs Zambian tourism

THE number of tourists visiting Zambia has quadrupled since foreigners began
to shun neighbouring Zimbabwe four years ago, boosting revenues from the
sector to US$153 million last year, officials said on Tuesday.

"There is a tourism boom in Zambia, which is partly because of the problems
Zimbabwe is facing with the international community," a senior Treasury
official told Reuter at an African tourism conference in Lusaka.

"Tourists (prefer) to visit Zambia compared to Zimbabwe now," he added.

Zambian Tourism minister Patrick Kalifungwa told the conference that tourism
was one of the southern African nation's three top growth sectors.

Zimbabwe used to be one of the region's main tourist destinations, but its
hotels and game reserves are now struggling to attract foreigners from
outside the continent.

The former British colony launched a controversial land reform programme in
2000, seizing white-owned commercial farms for redistribution to landless
blacks.

That helped spark its worst political and economic crisis since Independence
in 1980, as agricultural output contracted sharply and western donors halted
credit lines.

Kalifungwa said Zambia had embarked on a vigorous marketing campaign to
attract tourists and hoped to receive one million visitors a year by 2010.

A total of 610 109 tourists visited Zambia last year compared with 577 526
in 2003, he said. This compares with about 160 000 tourists four years ago,
according to government data.

"The country recorded tourism receipts of $152,8 million in 2004 compared
with $148,8 million in 2003 and we see our tourism industry growing
 further," Kalifungwa said.

Zambia's economy is expected to grow by 6% this year, compared with 4,6% in
2004, spurred also by expansion in agriculture and mining.

Good rains, farm reforms and the arrival of white commercial farmers who
fled Zimbabwe have helped Zambian agriculture and the country is keen to
cash in on its potential for offering safari holidays for foreign tourists.

Official estimates are not available, but based on Zambia's gross domestic
product data, tourism now accounts for nearly four percent of the economy.

Most of Zambia's roughly 10 million people still live in abject poverty and
like most of southern Africa, the country is in the throes of a raging
HIV/Aids pandemic that is killing off much of its workforce.

One of the main tourist attractions in Zambia - also accessible from
Zimbabwe - are the Victoria Falls, listed by the U.N agency Unesco as one of
the world's seven wonders.

Thousands of tourists also visit Livingstone town, 500 km south of Lusaka,
to see the spot which Scottish explorer David Livingstone visited nearly 150
years ago.- Reuter.
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Zim Independent

Editor's Memo

Love-struck

POLITICIANS using metaphors can be quite entertaining.

I recall in 2003 when a Labour legislator in Britain startled colleagues by
using what she admitted was a "very dangerous metaphor" against Prime
Minister Tony Blair.

Summoned for a private chat with the prime minister, she spoke of her
weariness with his charm offensive.

"He must think I am a fool if he thinks I will fall for his promises of a
place in the government. He is like a serial adulterer who keeps promising
his mistress he will leave his wife but never does," she said.

That was definitely over the top. But such tales provide useful soundbites
for the media.

President Mugabe is a master of the metaphor. It is his strong point,
especially when he addresses unsophisticated rural folk. The president can
be quite entertaining when he is in this mode.

At the beginning of the week he did not disappoint the crowd in Umzingwane
in Matabeleland South. Zanu PF is desperate to win back votes from
constituencies in Matabeleland provinces lost to the opposition MDC in 2000.
It was metaphor time again.

His metaphor of a husband trying to win back the love of a runaway wife
astutely captured a fascinating phenomenon in Zanu PF politics. This is what
the president had to say to the Umzingwane folk:

"In 2000 the vote was by and large 'No'. But if a man is rejected by a
woman, if he is still in love with her, as we believe we are still in love
with you, he will come back again. Is she going to say no?" said Mugabe.

"So there I am laughing and joking, very jubilant and hopeful that this time
I will give her the ring.

"Well there it is. I will come back again although this is not the time for
the second attempt. After the launch of our election campaign on Friday
(today), that will be the time we will be coming to talk to you in a serious
way and we will establish whether our destiny will be together," he said.

The metaphorical man in Mugabe's little story appears to be really in love
with this adulterous woman who is now sleeping with the enemy. The man is
even prepared to offer her a ring. He needs her back. But the sincerity of
the man is in doubt here if Mugabe was correctly quoted by the state media.

"But we would want the people to be with us. Give us the necessary support.
It is that oneness that we require and it must be demonstrated once every
five years," said Mugabe. There are the husband's true colours.

He only makes approaches to the cheating wife with the intention of making
up once in five years! Here is our love-drunk beau!

It is also hard to tell what the man has been up to all along and why the
woman ran away in the first place. The smitten lover is careful not to blame
the woman for leaving the matrimonial home. He is aware of his own
shortcomings, especially his battery of the poor woman during the early
years of the marriage.

Didn't the infatuated man admit at one point that the wife-beating was an
"act of madness"? Sanity restored, he is coming back.

As Mugabe promised the people of Umzingwane, he is coming back with a
proposal and hopefully to win the heart of the Matabele belle. She was
cheated in 2000 and 2002 by this grotesque suitor who convinced her to leave
her husband of many years, so the story goes.


Mugabe's current charm offensive in Matabeleland is not new. Its ardour
however hots up close to elections.

To illustrate that he is serious this time around, RBZ governor Gideon Gono
was on site to tell us that work on the Gwaayi-Shangani Dam - an important
phase of the Matabeleland water project - should be finished by 2007.

That is the dowry. But the Matabele belle would like to know what happened
to Zimbabwe/Malaysia Holdings which in 2003 said it had secured a $41
billion loan from Export and Import Bank of Malaysia. She needs to know why
this suitor did not sign the US$600 million deal in Malaysia in July last
year. What was the explanation by the way?

Some say Mugabe had not taken to Malaysia his technical people, including
then Water and Infrastructural Development minister Joyce Mujuru.

"The project requires much more discussion. Our Ministry of Water is also
not here. The deal will be done in the future," Mugabe told Malaysian media.

They are still discussing it we presume?

So when the suitor comes back, he needs to be asked all these questions. He
also needs to be asked when he will procure desks and chairs for rural
primary schools. Surely you do not want to hold computer lessons while
sitting on a goatskin or a brick!

In all this can the true husband please stand up?

*Meanwhile, I am still waiting for a response from Harare Commission
chairperson Sekesai Makwavarara.
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