http://www.theindependent.co.zw/
Friday, 19 February 2010 01:18
THE fight for
control of the controversial diamond fields in the eastern
part of the
country could soon explode into a major open conflict involving
powerful
politicians and influential corporate magnates as the battle to
take charge
of the precious gemstones intensify.
This revelation by informed
official sources comes as government is taking
steps to stop the inquisitive
parliamentary portfolio committee on Mines and
Energy chaired by former
Mines minister Edward Chindori-Chininga from
proceeding with its oversight
duties. Sources said government on Tuesday
indicated at a meeting attended
by President Robert Mugabe, the two
vice-presidents, the prime minister and
his two deputies and ministers that
the parliamentary committee must be
stopped in its tracks because the probe
was creating problems and could open
a can of worms.
"The parliamentary committee's oversight work on the
Marange diamond claims,
mining and sales issues is likely to come to a close
very soon because top
government officials are not happy with its
investigations," a source said.
"This might soon cause an explosive
confrontation between politicians and
mining tycoons involved in the battle
for control of the Chiadzwa diamond
fields."
Government, which
has an entrenched interest in the issue, is said to be
concerned about the
rising tensions over diamonds after recent parliamentary
committee hearings,
seizures of diamonds and alleged office break-ins -
moves which indicate
stakes were high in the matter.
The fight for the Marange diamonds
has escalated after a recent botched
attempt by Mbada Diamond Mining Company
to sell 300 000 carats of diamonds
through auction. There is also a battle
over the recent seizure by police
of African Consolidated Resources (ACR)'s
129 400 carats of diamonds from
the Reserve Bank offices. Millions of carats
of diamonds have been extracted
unlawfully at Chiadzwa since the diamond
rush began in 2006.
Government reacted to the proliferation of
illegal diamond exploitation in
the area by sending in soldiers who were
accused of brutality, including
killings, in the diamond
fields.
The parliamentary committee has been summoning people
involved in diamond
mining trying to unravel the complex issue of ownership
of the diamond
claims and how the companies currently on the ground got
there in the first
place.
Those who have appeared before the
committee in connection with the recent
failed attempt to auction diamonds
include the Zimbabwe Mining Development
Corporation (ZMDC) and Minerals
Marketing Corporation of Zimbabwe (MMCZ)
officials and police
officers.
The latest problem started when Mbada wanted to auction the
controversial
diamonds without the knowledge of the ZMDC, MMCZ, and the
Police Minerals
Unit.
During its hearings the parliamentary
committee has raised concern over the
"careless manner" in which government
has handled the mining and marketing
of the Chiadzwa
diamonds.
ZMDC's Marange Resources last year signed a deal with the
New Reclamation
group's subsidiary Grandwell leading to the formation of
Mbada, a 50-50
partnership joint-venture. The company is chaired by retired
Air
Vice-Marshal Robert Mhlanga.
The fight over diamonds pits the
government, which is working with Mbada
against, ACR. It is said senior
politicians are involved on both sides of
the conflict.
While Mbada
has Mhlanga who is well connected in political circles, ACR is
said to be
linked to an influential retired army commander who is well known
to have
vast business interests, including diamonds.
Accusations and
counter-accusations have been flying between the companies
fighting for
control of the diamonds.
The London Stock Exchange-listed ACR has accused
Mines minister Obert Mpofu
of being linked to New Reclamation, the South
African company involved in
the Marange diamond mining operations. Canadile,
a partnership between ZMDC
and South Africa's Core Mining, is also involved
in Marange diamond mining.
Mbada and Canadile are said to be mining
in a 2000-hectare claim legally
held by ACR which has been fighting intense
legal battles to regain control
of its concessions and ownership of the
gemstones.
The Supreme Court this week ruled that Mbada and Canadile
should stop mining
operations in Marange pending the finalisation of the
ownership contest in
court. The court also ruled that ACR diamonds seized
from the Reserve Bank
by the police should be returned to the central bank
forthwith.
ACR chief executive Andrew Cranswick yesterday said
government should
enforce the ruling and drive out "foreign firms acting in
contempt of court
orders and stealing Zimbabwe's strategic
assets".
Zimbabwe has survived expulsion from the Kimberley Process
due to the fight
over the Chiadzwa diamonds. A South African diamond
inspector Abbey Chikane
has been seconded to oversee the mining and sale of
diamonds in the country
which could degenerate into a conflict unless
checked in time.
The army has been accused of engaging in forced
labour, torturing and
beating local villagers on the diamond fields of
Marange district. The
military was said to have seized control of these
diamond fields in eastern
Zimbabwe after killing more than 200 people in
Chiadzwa, a previously
peaceful but impoverished part of Marange, in late
October 2008. The
government has denied this.
With extensive
black market trading, Marange became a zone of lawlessness
and impunity, a
microcosm of the broader situation which engulfed the
country before the
inclusive government was formed in February 2009.
Diamonds were
discovered in Marange in June 2006. By November 2006, however,
a nationwide
police operation was launched to clamp down on illegal mining
across the
country, including in Marange. Police assumed control of the
diamond fields
but, instead of halting illegal mining and trade, they
worsened and
exploited the lawlessness on the fields.
When police proved
ineffective, the army launched Operation Hakudzokwi (No
Return) in October
which left a trail of destruction and murder before
government withdrew the
military and allowed mining companies to come in.
Dumisani
Muleya
http://www.theindependent.co.zw/
Friday, 19 February 2010 01:09
A
HIGH Court judge, Ben Hlatshwayo, who reportedly lost a farm to First Lady
Grace Mugabe in 2008, has occupied part of an estate in Mashonaland West
owned by Ariston Holdings, a company listed on the local
bourse.
Hlatshwayo has taken over 800 hectares of the 4 500-hectare Kent
Estate,
which specialises in roses, poultry and livestock. The area the
judge is
occupying has a school and several valuable fixed
assets.
Impeccable sources told the Zimbabwe Independent that
Hlatshwayo moved onto
the farm late last year and negotiations between
Ariston and the judge to
reverse the occupation have yielded
nothing.
The judge's occupation of the estate, the sources said, had
the backing of a
senior government official after he lost Gwina Farm in
Banket, which he had
acquired in December 2002 during the controversial land
reform programme, to
the president's wife.
The First Lady
reportedly used her firm, Gushungo Holdings, to force
Hlatshwayo off Gwina
Farm near Mugabe's rural home.
Hlatshwayo was not reachable for
comment last night.
"The judge has occupied the horticultural group's
premier plantation with
the help of a senior government official," one of
the sources said. "He also
has the backing of other senior government
officials who have said the issue
of the judge has been solved after he lost
Gwina Farm."
But the occupation comes after Ariston resettled
indigenous farmers on part
of the 4 500-hectare farm a few years
ago.
Ariston managing director Kumbirai Katsande yesterday declined
to comment on
the matter.
The sources said before Hlatshwayo
occupied the estate, he had identified
and failed to occupy two farms in
Mashonaland West and a third in
Mashonaland East. Senior politicians in the
respective provinces reportedly
blocked him from taking over the
farms.
Last year, after being elbowed off Gwina Farm, the former
University of
Zimbabwe law lecturer took the case to the High Court and
accused Gushungo
Holdings of using political muscle to wrest the property
from him.
In court papers, Hlatshwayo reportedly said the "unlawful
conduct" by
Gushungo Holdings amounted to spoliation - or taking the farm by
force.
It was reported he claimed that the first family was sending
emissaries to
the farm and issuing instructions to
workers.
Hlatshwayo said there was "clearly no lawful basis for such
interference,
which conduct, by its very nature, amounts to
spoliation".
Constantine Chimakure / Chris Muronzi
http://www.theindependent.co.zw/
Thursday, 18 February 2010
21:05
PRESIDENT Robert Mugabe finally succumbed to pressure when he
agreed that
meetings of the National Security Council (NSC) would from now
be held every
month as stipulated in the global political agreement (GPA)
and the law that
set up the council. It had been agreed in the GPA by the
three principals -
Mugabe and the two leaders of the MDC formations, Morgan
Tsvangirai and
Professor Arthur Mutambara - that the meetings of the NSC
would be held on
the first Friday of each month.
However, the
council had only met twice since the formation of the
all-inclusive
government in February last year. The first meeting, where
national state
security issues were discussed, was held last June and the
second only two
weeks ago.
Mutambara this week confirmed to the Zimbabwe Independent
that the
principals had now committed themselves to having NSC meetings
every month,
as outlined in the GPA.
"We agreed as principals
that we will now be meeting very frequently as per
the stipulations of the
GPA, actually we will be meeting every first Friday
of the month," Mutambara
said before referring further questions to Mugabe
who chairs the
NSC.
The Minister of State in the Prime Minister's Office, Gorden
Moyo, said
legally the convening of the NSC meant that the Joint Operations
Command no
longer existed.
"The three leaders in the
all-inclusive government met under the NSC and
agreed that they have to meet
in the first week of every month and legally
that means JOC is no longer in
existence," Moyo said.
He however referred all questions to the
Office of the President where the
Secretary to the President and Cabinet,
Misheck Sibanda, was not available
for a comment.
The dismantling
of JOC, a security think-tank that was reportedly behind the
violent
presidential run-off poll in 2008 that returned Mugabe to power, is
still an
outstanding issue in the negotiations between the three main
political
parties.
Zanu PF has refused to dismantle JOC arguing that it only
dealt with
operational issues while the NSC was for policy
issues.
More than 200 MDC supporters died during the countdown to the
run-off, the
party says, while thousands of others were tortured and
injured.
The NSC comprises Mugabe and his two Vice Presidents, Joice
Mujuru and John
Nkomo, Tsvangirai and his deputies Mutambara and Thokozani
Khupe, Defence
minister Emmerson Mnangagwa, Finance minister Tendai Biti,
and Home Affairs
co-ministers Kembo Mohadi and Giles Mutsekwa.
It
also includes ex-officio members who include the Chief Secretary to the
President and Cabinet and service chiefs.
Loughty Dube
http://www.theindependent.co.zw/
Thursday, 18 February 2010 20:36
AFRICAN
Consolidated Resources (ACR)'s lawyers have filed a complaint
against a
high-ranking police officer over his role in the seizure of
diamonds from
the Reserve Bank of Zimbabwe offices. Venturas & Samkange, ACR's
attorneys, say Police Assistant Commissioner Freedom Gumbo's conduct on
February 4 amounted to "contempt of court, abuse of authority and
robbery".
In a letter to the Ministry of Home Affairs Venturas &
Samukange describe
how Gumbo and police officers pounced on the RBZ offices
and seized diamonds
in contempt of a court ruling.
Home Affairs
co-minister Giles Mutsekwa yesterday acknowledged receipt of
the letter. He
however said the letter should have been directed to the
Ministry of
Justice.
He said the letter had since been forwarded to the Justice
ministry to look
into the matter.
This comes as the Zimbabwe
Mining Development Corporation and Minerals
Marketing Corporation of
Zimbabwe (MMCZ) last year appealed to the Supreme
Court against a High Court
judgment by Justice Charles Hungwe restoring
rights to the Chiadzwa claim to
ACR. Justice Hungwe also noted that any
appeals would not "suspend the
operation of the order".
Chief Justice Godfrey Chidyausiku ordered
last month that diamonds seized
from ACR and all diamonds mined by Mbada and
Canadile, the two companies
mining on the claims, be sent for safekeeping to
the RBZ until the ownership
dispute was resolved.
The letter by
ACR's lawyers was copied to President Robert Mugabe,
Commissioner-General of
the Zimbabwe Republic Police (ZRP) Augustine
Chihuri, and Reserve Bank
governor Gideon Gono.
Chief Justice Chidyausiku is said to have
handed the order to transport the
diamonds to the deputy
sheriff.
On Tuesday, February 2, the deputy sheriff visited MMCZ
Offices to examine,
identify and label the diamonds which the Chief Justice
had ordered to be
surrendered to the Reserve Bank.
According to
the letter, he was not able to complete the process that day
and continued
the following day. However, when he finished, it was too late
to transport
the precious stones to the RBZ.
The following day, on Thursday,
February 4 the deputy sheriff went back to
the MMCZ offices and collected
the diamonds that had been sealed in a
"strong box."
But, the
letter said, as he was leaving the MMCZ offices, he was confronted
by Mines
Minister Obert Mpofu who claimed that the Chief Justice was going
to suspend
Justice Hungwe's order.
Mpofu is said to have demanded that the
diamonds remain with the MMCZ.
His argument was premised on a letter
authored by Nomonde Mazabane, the
Registrar of the Supreme
Court.
In the letter, the registrar indicated that Chief Justice
Chidyausiku had
advised that his order would suspend the whole of Justice
Hungwe's order.
The lawyers said the letter did not say that the whole
judgment would be set
aside. In fact it was pointed out that the letter was
not an order.
Encouraged by the registrar's letter and his own
interpretation, Mpofu is
said to have attempted to stop the
transportation.
The letter reads: "The deputy sheriff, quite rightly,
stated that he would
disregard the letter as it was not a court order. It is
not unusual for a
judge to hand down an order and then hand down his reasons
a short while
later. However, it is very unusual for a judge to instruct the
registrar to
advise the parties to an application of the effect of the order
when he only
intends to hand down his reasons 'shortly'. Such a letter has
no legal
effect. It is only the judgment which has legal
effect."
Ironically, the registrar sent the letter to the legal
practitioners of the
ZMDC and then sent copies, "not only to the other
parties to the
application, but also to the legal practitioners of the
minister, who was
not a party to the application."
Curiously,
according to the ACRs lawyers, the letter from the registrar was
dated
February 4, the day the deputy sheriff was removing the diamonds from
the
MMCZ.
"The letter obviously gave the minister (Mpofu) what he wanted
- a reason to
threaten the deputy sheriff and officials at the Reserve Bank
and frustrate
the execution of the existing order of the Supreme
Court.
"The deputy sheriff then took the case with the diamonds to
the Reserve Bank
and surrendered them to the officials. While the deputy
sheriff was still at
the Reserve Bank, Assistant Commissioner Gumbo came to
the Reserve Bank
accompanied by several armed policemen and demanded at the
'order of the
minister' that the diamonds be handed over to
him."
Although RBZ officials are said to have been reluctant to
release the
diamonds, Gumbo threatened them with arrest.
Only
then did the RBZ officials hand over the case containing the
diamonds.
Upon receipt Assistant Commissioner Gumbo did not leave a
receipt.
"We do not know what he (Gumbo) did with the diamonds. We
consider that the
actions of Assistant Commissioner Gumbo were completely
unlawful and in
contempt of a court order."
The lawyers argue
that Mpofu had no lawful right to "interfere".
The letter adds: "It
is bad enough that the Minister of Mines should
personally interfere with
the judicial process of implementing an order of
the Supreme Court. However,
the position was made worse by the fact that
Assistant Commissioner Gumbo,
because he was told by the minister to seize
the diamonds from the deputy
sheriff or officials of the Reserve Bank, did
so without any attempt to
ascertain that the order of the minister was
lawful. There is no rule of law
if police officers blindly carry out an
order given by a minister of state.
Police officers should only act when
they are satisfied that the complaint
of the minister has a sound legal
base."
The lawyers say that
Mpofu's personal intervention aided by a senior officer
of the ZRP is an
unlawful act designed to frustrate compliance with an order
of the Supreme
Court, and pursuant to such litigation, is hardly likely to
inspire
confidence in the ZRP, orders of the court and the rule of law in
Zimbabwe.
"We ask that this matter be investigated and that
appropriate action be
taken against Assistant Commissioner Gumbo. We also
ask you to confirm that
the Deputy Sheriff will not be obstructed in his
duties, particularly in the
enforcement of the provisions of the Order of
the Supreme Court in case No
SC 2307 09, and that the necessary instructions
are issued to the
Commissioner-General of the ZRP," says the
lawyers.
Chris Muronzi
http://www.theindependent.co.zw/
Thursday, 18 February 2010 20:19
THE MDC
formation led by Morgan Tsvangirai has resolved to set up an
independent
commission to probe corruption among its ministers, legislators
and top
leaders. The party's national executive agreed to set up the
commission at a
meeting held last Wednesday, at which the party's economic
advisor, Eddie
Cross, was summoned after being accused of leaking a story to
the Zimbabwe
Independent which named three ministers who were said to be
under
investigation for allegedly engaging in corrupt activities.
Party
insiders said Cross told the national executive that he had evidence
of
corruption involving the three ministers - Energy and Power Development
Minister Elias Mudzuri, co-Home Affairs Minister Giles Mutsekwa and Mines
deputy minister Murisi Zwizwai.
He challenged the party leaders
to set up an independent commission to
investigate the allegations of
corruption and not to sweep the matter under
the carpet.
One
source said: "Initially, people wanted the debate to focus on who the
source
of the story was and when the top leadership said it was Eddie Cross,
he was
then summoned and he categorically stated that he had evidence
connecting
the ministers to corrupt activities.
"He then asked the national
executive why they don't want to investigate if
they are serious about
dealing with corruption in the party. He challenged
them to institute an
independent investigation in the ministers and not just
focus on
councillors."
Sources said the meeting then resolved to set up an
independent commission,
which would not only focus on the three ministers
but would include other
ministers, legislators and top
leaders.
Another source said: "The probe should not only target
Zwizwai, Mudzuri and
Mutsekwa but should investigate everyone that has
engaged in corrupt
activities. For sure there will not be any sacred cows
and if done
professionally, the results might be shocking."
MDC-T
spokesperson Nelson Chamisa told the Zimbabwe Independent last month
that
anyone found to be corrupt would face automatic dismissal from the
party.
Chamisa could not be reached for comment yesterday as he
was out of the
country on government business. Party chairperson and also
Speaker of House
of Assembly Lovemore Moyo declined to
comment.
The Independent broke a story last month in which Mudzuri,
Mutsekwa and
Zwizwai were named as having been under investigation by the
party for
corrupt activities.
However, this was denied by Chamisa
who said there was no committee set up
to expressly investigate the three,
but said a 13-member probe team had been
set up in January to investigate
corruption at local government level.
It later emerged that there had
been campaigns from within the party to have
at least two of them - Mudzuri
and Zwizwai - put on the EU sanctions list
which contains President Robert
Mugabe and about 200 other top Zanu PF
officials.
Insiders in the
MDC-T believed that infighting gave rise to the allegations
that the three
were being investigated by the 13-member team led by party
deputy
secretary-general Tapiwa Mashakada.
Faith Zaba
http://www.theindependent.co.zw/
Thursday, 18 February 2010 20:15
NINE
soldiers who were acquitted last year on allegations of going on a
rampage
in Harare and looting goods from shops, beating up illegal foreign
currency
dealers and robbing them of their money, have been discharged from
the
Zimbabwe National Army (ZNA). Last year, the soldiers were acquitted by
a
court martial because of lack of sufficient evidence linking them to the
mutinous behaviour.
However, despite their acquittal a source in
the army said they were
cashiered under administrative discharge last
December.
The source said: "The soldiers were acquitted in January
2009 because of
lack of evidence but in December the same year they received
letters
informing them that their services in the army were no longer needed
and
their dismissal was based on administrative
charges.
"Dismissal on administrative charges is usually given when
one is
incompetent, for instance coming to work late, not following orders
or just
not performing well at work. It's surprising as to why all were
dismissed at
once. This has raised suspicion that someone really wanted to
see them gone
and the administrative reason was just an
excuse."
ZNA spokesperson Lieutenant-Colonel Everson Mugwisi did not
respond to
questions he asked from the Zimbabwe Independent pertaining to
the matter at
the time of going to print last night.
The soldiers
allegedly went into Harare's CBD and stole food, clothes and
harassed
illegal foreign currency dealers who they blamed for the then
hyperinflation.
Wongai Zhangazha
http://www.theindependent.co.zw/
Thursday, 18 February 2010 20:10
A MAJOR power
crisis has gripped the country with reports that five of the
six generating
units at Hwange Power Station are down. The operational unit
is generating a
mere 90MW. Kariba Power Station is generating 745MW and an
additional 200MW
are imported from neighbouring countries in the Southern
African Power
Pool.
Internal generation and the imports were by Wednesday standing
at 1 035MW
against the national daily demand of 2 200
megawatts.
The electricity crisis has worsened the current power
rationing with Zesa
switching off customers randomly throughout the country,
in some cases for
periods between seven and 12 hours daily.
The
situation is unlikely to improve in the near future.
Fullard Gwasira,
Zesa spokesperson, confirmed to the Zimbabwe Independent
that the power
utility had increased power rationing due to the breakdown at
Hwange Power
Station.
"Load-shedding has increased due to depressed electricity
generation at
Hwange Power Station where one unit is producing 90MW out of a
possible
generation of 480MW," Gwasira said. "Kariba is generating 745MW to
augment
electricity imports of 200MW from neighbouring countries in the
Southern
African Power Pool."
He added: "There is a mismatch
between the national demand of 2 200MW on one
hand and the available
electricity of 1 035MW on the other. Coupled with the
fact that three
thermal power stations in Harare, Bulawayo and Munyati are
not generating
electricity due to a combination of factors, which include
fuel supply and
plant challenges, electricity availability is depressed at
the
moment."
Gwasira said it was necessary to have increased
load-shedding to ensure that
the available and scarce power is adequately
shared by all consumers.
The country, despite the power shortages, is
exporting 150MW to Namibia
under a US$40 million deal where Namibian utility
NamPower provided capital
for the refurbishment of power units at Hwange
Thermal Power Station in
exchange for electricity.
Gwasira
however defended the deal saying Zimbabwe would benefit from the
pact in the
long run.
"This loan (from the Namibians) is a win-win and can
actually be viewed as a
prepayment for power to be delivered at a later date
after refurbishment,"
he said.
Turning to plans that Zesa has of
rectifying the problems at Hwange Power
Station, Gwasira said a lot of money
was required to refurbish the units,
but the solution was to replace
antiquated equipment.
Apart from refurbishing and replacing
antiquated equipment, the power
utility also needed to service auxiliary
equipment not covered under the
agreement with the Namibians.
"A
lot of money is required, not only to refurbish the generators, but also
the
auxiliary equipment associated with the generators," Gwasira explained.
"Under the Namibian deal, only the generators were refurbished, and not the
auxiliary equipment and this has affected the optimal use of the
plant."
The government has said it would seek partners to run the
three thermal
power stations at Munyati, Bulawayo and in
Harare.
The three thermal power stations can generate 500 megawatts
if they are
fully operational.
Meanwhile, the Competition and
Tariff Commission is probing Zesa over
allegations of abusing its monopoly
to charge excessive tariffs.
According to the commission, the
investigation would centre on "alleged
abuse of monopoly by Zesa through
excessive tariffs, charging electricity
not consumed through estimates in
billing and arbitrary cutting of
electricity supplies for domestic and
industrial use".
The commission, through its chairman Dumisani
Sibanda, has invited written
submissions to do with "any restrictive and
unfair business practices within
Zesa on the local market".
The
submissions are to be lodged with the commission by next Friday.
Loughty
Dube / Nqobile Bhebhe
http://www.theindependent.co.zw/
Thursday, 18 February 2010
20:07
BULAWAYO City Council will next month decommission two of its five
dams amid
revelations that the city is left with 14 months supply of water.
Water
levels at Inyankuni and Umzingwane dams have dwindled to 10,71% and
15% of
capacity.
In terms of council by-laws, dams are cut from
the supply line once water
levels plunge to 10% capacity.
The
decommissioning would leave three dams on the supply line - Insiza, and
Lower and Upper Ncema, which are in the drought-prone Matabeleland South
province.
By Wednesday Lower and Upper Ncema were 72% and 42%
full respectively while
Insiza was 78% full.
On Monday, mayor
Thaba Moyo told the Zimbabwe Independent that the city's
more than 1,5
million residents should not panic.
"It's not a secret that the city
is faced with potential water shortages,"
Moyo said. "We are set to
decommission Inyankuni and Umzingwane in March as
the water levels are now
too low."
Moyo said council was working on "a stiffer water-rationing
regime".
"We are aware of the potential water shortage but at
present, management is
working on a stiffer water-rationing regime.
Residents should not worry that
they will go for days without water," he
said.
Asked on the likely impact on industry, Moyo said it should not
be alarmed.
"Pending water shortages should not alarm either
residents or industries.
The business community should know that in Bulawayo
lies their future for
growth and relocating should not dominate their
thoughts," he said.
Bulawayo-based economist Eric Bloch concurred
with Moyo that industries
should not be alarmed by pending water shortages
as they would "slightly
feel the pinch".
Bloch said industries
would not be affected as much as council; "water
rationing would largely
target non-industrial use".
"The only danger that industries face in
the city is erratic power cuts and
salary friction between labour and
employers and not water," he said.
This week, Zesa warned the country
of increased power cuts that would see
all parts of the country go for more
than seven hours daily without any
power.
Bulawayo has lost its
status as the industrial hub of Zimbabwe largely due
to perennial water
problems.
Bulawayo needs about 140 000 cubic meters of water daily
for both domestic
and industrial consumption but the growing population now
outstrips supply
capacity.
According to a council report in
January, residents used 169 790 cubic
metres of water
daily.
Nqobile Bhebhe
http://www.theindependent.co.zw/
Thursday, 18 February 2010
19:58
PRESIDENT Robert Mugabe will be blowing out a lot of birthday
candles on
Sunday. Actually, 86 colourful little candles. And he will need a
good pair
of smoke-free lungs to achieve this. Mugabe's birthday, a key
national event
on the calendar, will be marked this year in Bulawayo on
February 26 with a
night of music and feasting, according to Zanu PF youth
officials.
Already the publicity machine is being oiled with radio
and television
advertisements now being broadcast.
Come Sunday,
thousands will be congratulating "His Excellency, the
President, Head of
State and Government, Commander-In-Chief and first
secretary of Zanu PF" on
the event of his birthday and wishing him many
more.
Suddenly
parastatals, which are for the better part of the year invisible,
will start
showing up on the corporate radar again, showering His Excellency
with
flowery birthday messages in newspapers and disappear again until his
next
birthday.
The press will be delighted as well; advertising revenue
will be flowing in
their thousands. Birthday supplements always
follow.
Apart from state enterprises, youths will be lining up at the
feeding trough
bussed in from the country's various provinces and literally
singing for
their supper.
For his close lieutenants, it will be
an opportune time to curry favours
with the boss.
Traditionally,
Mugabe's birthday will see a wholesale slaughter of cattle,
goats, chickens
and a host of other edible animals.
The organisers are working hard
not to disappoint him either. Letters have
been sent to the corporate world
with demands many executives cannot
refuse -- "donations" to the 21st
February Movement bash.
According to a letter sent to prospective
donors, membership and association
to the movement cuts across political,
religious, ethnic, and racial
considerations.
Zanu-PF Youth
Secretary Absolom Sikhosana says the organising committee has
sourced
"adequate funds to ensure that this year's edition is a resounding
success".
Sikhosana says 15 000 youths from various provinces are
expected to attend.
He said: "We are expecting to host more than 15 000
youths from across the
country and this has necessitated the change of the
venue from City Life
hall." Now the event has been moved to a bigger venue,
the International
Trade Fair Grounds.
Since 1986, Mugabe's
birthday celebrations have been organised by the 21st
February Movement,
initially modelled on scouting and aimed at promoting
children's
rights.
But the greater good to champion children's rights and
welfare has been
forgotten over the years with the organisers pampering the
Zimbabwean
leader.
Three years ago, businessman Philip Chiyangwa
donated US$110 000 for Mugabe's
birthday. Others do so with
discretion.
Judging from past occasions, there will be a banquet, a
gala dinner, a
concert and a public feast at which dozens of animals are
slaughtered.
Last year, the movement spent US$250 000 on his
party.
For over a decade companies have been donating generously to
the annual
event. The organisers are determined to make a memorable day out
of it. An
all-night bash reminiscent of yesteryear galas has been planned
reportedly
featuring local and international artists.
Years back,
Zimbabweans became accustomed to various night-long bashes to
mark this or
that day.
Now after a year without bashes, Zanu-PF it seems still has
more to offer.
Mugabe's birthday comes at a time inter-party talks to iron
out outstanding
issues of the global political agreement are teetering on
the brink of
collapse.
The sponsors of the power sharing agreement
that led to the formation of a
unity government are not
happy.
Zimbabwe is facing a food deficit but that is unlikely to be
an agenda item
with everyone in Zanu PF attempting to get the party leader a
good gift.
According to the World Food Programme, 2,4 million people will
need food aid
this year.
On the economic front, investors are
panic-stricken by plans to seize
foreign-owned businesses. And no one is
interested in calming them down. In
fact, Mugabe is talking tough and claims
that "49% equity is a hell of a lot
more" than investors should
retain.
The Affirmative Action Group, a black empowerment lobby
group, is sending
chilling messages to the Nigerian business community
bordering on the
xenophobic.
Civil servants have been on strike
for over a week and the justice system is
failing because of the industrial
action.
Despite these problems, Mugabe has recorded an interview with
the state
broadcaster where he normally lightens up and cracks a few jokes
to an
over-indulgent interviewer.
And the usual guests are
already in town. An American citizen with a soft
spot for Mugabe, Coltrane
Chimurenga of the December 12 Movement, is already
in the capital. Many
others too cannot wait to get to Bulawayo.
Chris Muronzi
http://www.theindependent.co.zw/
Thursday, 18 February 2010 19:50
I WAS shocked to
tears by Deputy Prime Minister Arthur Mutambara (pictured
bottom right)'s
posturing in a purported interview headlined "Talk of
restrictive measures
nonsensical" in the Herald of February 13. I was left
without doubt that,
just like Gabriel Chaibva, Mutambara is a Zanu PF
supporter to the core. He
should just declare openly his allegiance to Zanu
PF for all of us to know.
Nearly all his assertions were pure hogwash, but I
will pick out the
worst.
Mutambara told us that our country is under full sanctions.
Nothing can be
further from the truth.
The last time this country was
under full sanctions was when it was still
Rhodesia during the UDI era of
Prime Minister Ian Smith. Smith was under a
blanket UN economic embargo and
he survived by trading illegally with
apartheid South Africa.
It
should be told that Smith's sanctions were imposed at the behest of the
Americans and the British. The role played by then US Secretary of State
Henry Kissinger and then UK Premier Harold Wilson in ending the UDI should
be held in high esteem in modern day Zimbabwe.
This shows that the US
and UK have been consistent against barbaric regimes
wherever they are
regardless of skin colour.
Robert Mugabe's sanctions are targeted
because Border Timbers can sell all
its wooden doors to the US, Interfresh
is exporting its flagship Crush to
the entire EU, and Lake Harvest is
exporting its Tilapia to the UK, just to
briefly expose the blatant lie of
"full sanctions".
Mutambara complained that when the president of a
country is targeted, the
effect is that the country is deemed unsafe. What
is the problem with that
when the country is indeed unsafe? Mutambara knows
very well the murder of
opposition supporters, farmers and farm workers by
thugs aligned to Zanu PF.
I shall not attempt to name victims because
they are well known and well
documented. How does one describe the safety of
a country where innocent
civilians are abducted in the middle of the night
and held incommunicado for
months?
Do I have to mention Jestina
Mukoko and Pasco Gwezere among dozens of
others?
The photograph of
farmer Ben Freeth's house up in flames that circulated
around the world
through the internet is sure evidence of a country run by
the rule of the
jungle. What is the problem when a dictator presiding over
such chaos is
targeted?
Mutambara is disappointed by how foreign leaders are
"naïve, stupid and
undermining us". Is that the language of a serious
national leader? What
about the notion of diplomatic language? It reminds me
of his master's
desperate, scornful and shameful utterances, such as "Carson
is a little
idiot", "Dell must go to hell", and "Bush is the god and Blair
the prophet",
to quote just a few. It seems Mutambara needs a serious and
thorough
grooming exercise. He needs to be told the effect of foul language
in this
digital era where the world has shrunk considerably. As a professor,
Mutambara should know that just one adolescent, overzealous and reckless
comment, markets will react.
Mutambara suggested we should all
respect Mugabe because he has
"generational results". Nonetheless, he
dismally failed to rollcall all such
results. I shall partially offer help:
during Mugabe's reign, our currency
vanished, schools and hospitals shut
down permanently, we lost over 4 000
innocent souls to an old and treatable
disease called cholera, and in 2008
the whole country had become one big
refugee camp surviving on handouts from
the US and EU.
Then we
were appraised that by 2015 China would have overtaken "America" as
the
biggest economy in the world. Well, such wild and self-serving
projections
aside, what is called America in comparative terms to China
anyway? In
Davos, Americans worshipped China, we were informed.
However we were not
told exactly how the Americans did that but Mutambara
observed Barack Obama
and Gordon Brown running like little kids when Chinese
vice premier Dr Lee
was presenting.
I saw all delegates seated when I followed it on TV. By
the way, the UK is
helping Zimbabwe to the tune of US$100 million this
year.
It is the UK's largest assistance ever to this country. How much
help are we
going to receive from the Chinese, directly or indirectly,
professor?
Without doubt the biggest lie was that Obama recently
refused to meet the
Dalai Lama fearing Chinese reprisals. The truth is that
that meeting will go
ahead as confirmed by the White House on February
12.
The worst of the frightening assertions was that sometimes democracy
and
human rights are not necessary. That statement should surely seal
Mutambara's
unsuitability to be a national leader forever. What are the
times when
democracy and human rights are "not necessary"
professor?
Here is someone who should spearhead the transformation of
our society from
a dictatorship to a democracy uttering the opposite of his
mandate. No
wonder all reforms stipulated under the global political
agreement are
stalled. Mutambara should know that historians are keeping
such shameful
utterances for posterity.
Percy Jinga is
contactable at percivalmunjoma@yahoo.com This
e-mail address
is being protected from spambots. You need JavaScript enabled
to view it .
http://www.theindependent.co.zw/
Thursday, 18 February 2010
16:55
PRESIDENT Robert Mugabe last December told his party congress that
elections
would be held soon. Weeks later, South African President Jacob
Zuma said
Harare should “park” outstanding issues of the Global Political
Agreement
(GPA) and “proceed” to create a conducive environment for fresh
elections.
MDC leader Morgan Tsvangirai has bought into Zuma’s
proposal to “park and
proceed” after meeting the South African leader three
weeks ago on the
sidelines of the World Economic Forum in Davos Switzerland
and was told that
regional leaders were proposing elections as the panacea
to the country’s
political impasse.
Tsvangirai said a new
constitution should be enacted by October followed by
fresh elections six
months later.
Zuma wants the outstanding issues “parked” and a road
map to free and fair
elections drawn up.
One source privy to the
GPA talks, which have deadlocked, said: “To Zuma and
some regional leaders
the only exit point is free and fair elections.
The road map would be
anchored on the crafting of a new constitution and the
creation of an
environment that will guarantee security of people, freedom
to campaign,
media reforms and the democratisation of electoral laws and
election
management.”
While such statements might be met with glee from the
international
community and some sections in the region, Zimbabweans do not
know whether
to welcome an election as early as April next year or to feel
worried.
Memories of the run-up to the June 27 bloody presidential
run-off poll are
still fresh in people’s minds and nothing has been done on
the ground to
create an environment that allows for a free and fair election
so that
people can freely choose their next leader.
Zimbabweans
agree generally that the situation has improved under the GPA
compared to
the chaotic and violent 2008 and years preceding. They are also
aware that
at some point, the inclusive government will have to give way to
a
popularly-elected government.
Political analysts this week said
Zimbabweans are not ready for an election
in the next 14 months. They also
believe that none of the three political
leaders wants the elections in 2011
and were just posturing when they made
such pronouncements.
An
early election, analysts say, would be suicidal for Zanu PF because
Mugabe’s
party may never regain absolute power after having lost its
parliamentary
majority in March 2008.
Zimbabwe Election Support Network (Zesn)
chairperson Tinoziva Bere pointed
out that Mugabe would only call for an
election when he feels his party has
a chance of winning and next April
might be too soon, especially now when it
is at its most divided since
Independence in 1980.
The analysts said talking about an election in
14 months is not enough. The
inclusive government has to guarantee people
that there would not be a
repeat of the pre-June 27 period, when more than
200 MDC supporters died,
while thousands others were tortured and
injured.
They said there was need for national healing before
elections could take
place.
Zesn national director Rindai
Chipfunde-Vava said national healing was just
as important as implementing
electoral reforms if the country is to have
elections under an environment
that allows free participation and freedom of
speech.
“There is
need to do confidence-building in the people. National healing is
very
important so that people appreciate the elections, otherwise people
will
still be traumatised and they have not forgotten 2008.
Why should people
die during an election?” she said.
The analysts said the inclusive
government has to make sure that benchmarks,
such as electoral, media,
judiciary, legal and security reforms, are in
place before Zimbabwe can hold
a free and fair election.
They said as long as the environment
remains skewed in Zanu PF’s favour,
which still controls the army,
judiciary, security agents, police and state
media, MDC would have an uphill
task to campaign freely and mobilise its
supporters.
Failure to
dismantle the Joint Operations Command (JOC), a security
think-tank that was
reportedly behind the bloody presidential run-off poll
that returned Mugabe
to power, worsens the situation, the analysts said.
Bere said: “The
conditions on the ground show that there have not been
substantial reforms
that create an environment for free and fair elections.
No measures have
been taken to prevent what happened in 2008. The
perpetrators of violence
are still roaming the streets.”
He said as long as there are no
security reforms, the chances that there
would be an orgy of violence are
high.
“The security sector has to be reformed to ensure that it is
independent and
it is reintegrated. If that is not done, statements such as
‘we will not
salute’ anyone except Mugabe will be repeated. It is still the
same
characters who don’t accept plurality.”
Programme
coordinator of Zimbabwe Lawyers for Human Rights Irene Petras said
the
Attorney-General’s office, police and other security services should be
reformed into institutions that are impartial and which do not selectively
apply the law.
She said the service chiefs should be made aware
that the people’s choice
should be respected and their operation should not
be in violation of the
constitution, which states that they should not be
political but should be
able to serve whoever is in
office.
Zimbabwe Defence Forces Commander Constantine Chiwenga,
Police
Commissioner-General Augustine Chihuri and Commissioner of Prisons
Paradzai
Zimondi are on record saying that they would never salute a
president other
than Mugabe, least of all one who did not participate in the
war of
liberation.
“Punitive laws still exist and until there are
substantial reforms that
ensure that people are free and that create an
environment that guarantees
people freedom of expression and association,
elections should not be held,”
said Bere. “In addition, election reforms
have not been implemented. The
constitution-making process is all over the
place and might be implemented
as a formality. Democratisation of the media
is still not done. There is
still hate language in state media against the
MDC.”
Petras said the inclusive government should ensure that the
Zimbabwe
Electoral Commission is professional and transparent and that the
role of
the registrar-general should not be what it is today, where there is
no
accountability.
“We need an overhaul of the voters’ roll and
we also need to look at the
delimitation. These things need to be addressed
first,” she said.
Chipfunde-Vava said rushing into elections without
implementing necessary
electoral reforms would lead to
disaster.
“If you want to see a difference from elections conducted
in 2008, we need
significant reforms to improve the elections environment.
The voters’ roll
needs revamping and all this needs to be done before an
election is done,”
she said.
“First we need a constitution to be done
and then we need time to implement
what is in the constitution. The reforms
have to be significant –– legal,
institutional and the architecture of the
elections. Even the media reforms
have to be done. They are just talking
about media reforms but doing nothing
about them.”
Former United
States Ambassador James MacGee in his 2009 ambassador’s review
also believed
that elections could only be held if the government creates an
open and free
environment with international observers monitoring polling
stations and
tabulations.
“In order to create conditions under which free and fair
elections can take
place, the legal system will have to be reformed, freedom
of the press and
speech will have to be restored, political violence will
have to end,” he
said adding that: “Free and fair, supervised elections seem
a long way
away.”
McGee said there were limited signs that
Mugabe and Zanu PF were committed
to fundamental changes to meet the
benchmarks for a free and fair election.
Bere said there seems to be
no timetable in place for fixing these problems.
“Instead of talking
about elections, politicians should be demanding
electoral reforms,” he
said.
Bere said international observers could not guarantee or stop
political
violence.
He said even if they were there, people would
still not be allowed to freely
make their choice under these current
conditions.
Chipfunde-Vava concurred when she said: “Internationally
supervised
elections do not stop violence. I have supervised internationally
monitored
elections and these are not enough on their own. They only augment
and
supplement the local environment”.
Faith Zaba
http://www.theindependent.co.zw/
Thursday, 18 February 2010 19:27
YEAR-on-year
inflation rose by 2,9 percentage points on the December rate
of -7,7% to -
4,8% in January, the Central Statistical Office (CSO) said
yesterday. From
January to December 2009, month-on-month inflation had been
oscillating
between -3,1% and 1 percent after government dollarised the
economy.
“Year on year inflation rose for the month of January
2010 as measured by
the all-items Consumer Price Index (CPI) stood at -4,8%
gaining 2,9
percentage points on the December 2009 rate of -7,7%,” the CSO
said.
The month-on-month rate in January was 1,81% gaining 0,3
percentage points
in December 2009 at a rate of -0,68%.
“Non-food
substances stood at 0,8%, shedding 0,09 percentage points on the
December
2009 rate of 0,39%,”it added.
Economists however said the inflation
outlook for 2010 was expected to
remain stable within the single-digit
levels, subject to resolute adherence
to sound macro-economic management
measures adding that robust policy
reforms have to be implemented to rid the
economy of any inflationary
pressures.
Zimbabwe went into
deflation last year when stable multiple currencies were
introduced. This
saw price stabilisation for much of the year.
With the introduction
of multiple currencies in February, questions are
being asked if government
would be able to live within its means this time
around.
Economist Brains Muchemwa said given the prevailing modus
operandi (that is
the dollarisation of the economy), government will be
“forced to operate
within budgetary allocations because of lack of control
of money supply”.
Corporate lawyer and newspaper columnist Alex
Magaisa said history had shown
that government has generally failed to live
within its means and Biti’s
staggering task was to inculcate discipline in
line ministries.
“The trouble is there is so much that needs to be
done and all this requires
resources but there is little by way of resources
to do it,” Magaisa said.
“At the moment as a country we are living like
hunter-gatherers, living from
hand to mouth and whilst this might permit
survival, it does not provide the
facility for development at
all.”
Magaisa said too much of the government revenue was being
expended on
“survival needs” as opposed to “growth
needs”.
Economic consultant Eric Bloch said not only was economic
recovery
critically dependent upon government living within its means, but
government
had no alternative, “for it neither has any borrowing powers in
the current
environment, nor the ability to print money”.
Bloch
said government must therefore maximise its means, without resorting
to
overly-burdensome taxation (which would deter investment and undermine
economic recovery). It could achieve that maximisation by a variety of
means.
Kingdom Stock Brokers head Witness Chinyama said an
improved agricultural
season, increased output in the mining sector and
better performance by the
tourism sector would augur well for
inflation.
“Our inflation outlook would be determined by increased
production, mainly
in the agricultural sector, increased production would
heat up the economy
and when it is heated we are likely to experience
positive inflation,” said
Chinyama.
Paul Nyakazeya
http://www.theindependent.co.zw/
Thursday, 18 February 2010 19:25
ONE of
the country's leading asbestos mines, Shabanie, is on the verge of
collapse
after its administrator failed to settle a US$1 million electricity
bill
resulting in the disconnection of power, which prompted flooding of the
mine. As a result equipment valued at over US$450 million is reportedly
submerged.
The mine, currently under the management of Arafas
Gwaradzimba of AMG Global
Chartered Accountants, has reportedly failed to
pay salaries since last
October's strike which resulted in the near-fatal
shooting of three workers.
Mines and Mining Development minister
Obert Mpofu told parliament last week
that Shabanie Mine -- at the centre of
a protracted ownership wrangle
between government and former owner Mutumwa
Mawere -- is facing a host of
operational problems.
"I am aware
that the only asbestos mine is having these challenges. You may
also be
aware that those companies are being administered by the
administrator or
curator and the functions and responsibilities of running
those entities are
in the hands of the administrator," Mpofu said.
When asked by
Masvingo urban MP Tongai Matutu if he was aware of the plight
of an
estimated 3 000 workers who had not been receiving salaries over the
last
six months, Mpofu said: "We have no direct responsibility to the
administration that was put in place on those mines."
Sources
following developments obtaining at the mine said the decision to
switch off
power has submerged equipment worth US$450 million. The sources
added that
the underground water had reached the 10th level of the mine
where
electricity sub-stations are based.
Mpofu however said the power
utility cut power supplies to the mining
company early this month. He said
government was planning to repossess the
mines, a decision he claimed would
restore operations.
"I know last week their power was disconnected
because of challenges in
payment," the minister said.
"We have
actually appealed to those responsible for those mines to at least
bring
those mines back to where they belong, that is the Ministry of Mines,
so
that we can deal with them in a manner that can address the
issues."
Sources said the mine failed to settle the energy bill
despite being granted
a "grace period" by Zesa to take the equipment
underground to the surface.
This, the sources, warned could take six months
before the company resumes
operation.
Last September, Zesa
reportedly disconnected power from Shabanie Mine over
an outstanding bill of
about US$4 million dollars. The company was later
reconnected after its
management engaged the power utility and promised to
settle the debt once
the company was recapitalised.
Shabanie Mine was put under
administration in 2004 after the state accused
Mawere of externalising huge
sums of foreign currency. Mawere -- a
Zimbabwe-born South African citizen --
is still battling to regain his
business empire expropriated by government.
The empire spread from mining to
agriculture, petroleum and media, among
other sectors.
The business tycoon is based in South
Africa.
Bernard Mpofu
http://www.theindependent.co.zw/
Thursday, 18 February 2010
19:22
FINANCE Minister Tendai Biti will today meet the International
Monetary Fund
(IMF) to lobby for the restoration of the country’s voting
rights and offer
lines of credit. Sources said Biti who left for the Unites
States on
Wednesday was confident Zimbabwe’s voting would be
restored.
Before he left Biti was quoted saying Zimbabwe had received
guarantees of
support from the US –– which is the largest shareholder –– as
well as
Britain, France and Germany.
He also said he had got encouraging
support from key IMF bureaucrats when he
visited the US last month
The
IMF suspended Zimbabwe’s voting rights in June 2003 after the country’s
economy deteriorated and government fell behind on debt repayments.
The
multilateral financial institution said the country would only regain
the
voting rights as well as financial and technical help if it cleared its
arrears and implemented sound economic policies.
Zimbabwe owes the IMF
US$139 million under the Poverty Reduction Growth
Facility –– Exogenous
Shock Facility.
Voting rights in the IMF are based on countries’ quotas and
the amount of
foreign exchange reserves that they have deposited in the
fund. –– Staff
Writer.
http://www.theindependent.co.zw/
Thursday, 18 February 2010
18:59
DEPOSITORS this week said they were losing confidence in the
banking sector
following a spate of frauds and robberies since last
year.
Depositors interviewed said they feared that events which occurred
between
2003 and 2004 that resulted in the closure of 15 financial
institutions as a
result of fraud and failure to practice proper banking
could be back to
haunt the sector again.
"We are still
sceptical about the local financial sector. Its explains why
many people
withdraw all their money once it is deposited in their
accounts," said one
depositor.
The Bankers Association of Zimbabwe could not give a
position regarding
confidence in the banking sector this week when asked to
comment.
"It is going to be difficult to attract a lot of deposits
when all this is
happening. The banks are battling to regain our
confidence," another
depositor said.
Tobacco farmers this week
said they were against the depositing of their
payments in bank accounts as
a result of the recent spate of frauds and
robberies.
The
farmers are being paid US$2 000 on the spot for tobacco sold and the
reset
is deposited in their bank accounts.
"Why should the government
decide how much money to pay us at hand and say
the balance will be
deposited in our accounts to promote local banks instead
of tightening their
operations to avoid fraud and robberies? What if we lose
our money?"
questioned one tobacco farmer.
Reserve Bank governor Gideon Gono is
on record suggesting that some banks
are being run in a mafia-style
management.
Globally, banks have been accused of causing the credit
crisis in 2007 which
eventually plunged the world economy into a
recession.
Since then several banks have closed, some were taken over
by stronger ones
while others are slowly recuperating under government
bailouts.
While local banks have not been directly affected by the
credit crisis,
their performance is not impressive as they are failing to
offer credit to
business and individuals.
The current
loan-to-deposit ratio of 40% is considered low.
As core functions,
banks take deposits and lend the money to generate
profits through
interest.
Financial institutions make money by skilfully managing the
risk of
transforming short term deposits into long-term
loans.
"Until the deposits improve and the lender of last resort is
restored, many
banks will not be able to increase their loan-to-deposit
ratios above 40%.
As such, banks will continue to be viewed as unsupportive
to industry, which
may not be entirely true," an analyst
said.
Another sad reality is that most banks are technically
insolvent with no
paid up capital. Revaluation reserves, which are not
distributable, are only
what most banks have as shareholder's
funds.
In the event of huge default on their loans such banks will
not be able to
absorb the shock because they are already over leveraged.
Mindful of this
shortcoming, banks are understandably limiting their loans
to manageable
levels with credit being provided only to stronger
companies.
According to information gleaned from various financial
institutions, most
local banks' internal auditing systems were said to be
weak to such an
extent that they can be manipulated, putting depositors
money at risk.
Bankers also said fraud can take long to detect or
control as it usually
involves senior managers. Robberies are also said to
be done with
information from "someone inside."
Some bankers are
said to be stealing from suspense accounts, while some
monitor whether
accounts are active or dormant so as to abuse them.
"Tempering with
suspense accounts has always been practiced in this country
especially
during the era of the burning phenomenon. It is now a thorny
issue because
we are now dealing with real money (US dollars)," a commercial
bank insider
said.
However before dollarisation in 2008 NMBZ Bank lost about US$4
million. A
case of insider fraud also resulted in CFX Bank going
insolvent.
Incidents of fraud and robberies that have occurred at
Zimbabwean banks
since January last year:
* January 2009: three
armed men storm the CBZ Chitungwiza branch and
steal mobile phones from bank
staff, but fail to get any cash.
* February 2009: Four armed men
among them two policemen hit Kingdom
Bank's Karigamombe Centre branch in
central Harare and get away with US$120
000, R48 930, £155, 1800 pula and 10
Australian dollars. Closed circuit
televisions help apprehend the
suspects.
* July 2009: A Barclays Bank branch in Bulawayo falls
victim when a
six-member gang raided the branch and escaped with US$50 000,
R126 000 and
£500.
* December 2009: Six armed robbers hit Stanbic
Bank's Chegutu branch
making-off with US$266 000 150 000 Rand and 34 690
Pula before escaping in
two getaway cars -- an Isuzu KB twin-cab truck and a
Peugeot 406. An
assistant branch manager is shot and injured as the gang of
six flees the
scene with boxes containing cash denominated in US dollars,
South African
rands and Botswana pulas. Customers who are in the banking
hall are also
relieved of their cash, mobile phones and other
valuables.
* January 2010: Investigations at FBC Bank unearth a
massive US$1
million fraud at its Mutare branch. The bank says it has
established that it
has lost US$500 000. Junior workers defrauded the bank
in collusion with
senior managers and most of the suspects have since been
arrested. The fraud
was discovered when the bank was carrying out month-end
reports for January,
and the accounts would not balance. The employees made
fictitious deposits
to three accounts they had opened to facilitate the
fraud and would withdraw
the money, then deposit it again into the personal
accounts of accomplices.
This unique fraud occurrs because both junior and
some identified senior
staff were acting in collusion; hence the dual
control system was
compromised.
* February 2010 the Zimbabwe
Allied Banking Group (ZABG) is defrauded of
US$140 000, involving one of the
bank employees, working in collusion with
some individuals outside the
bank.
Paul Nyakazeya
http://www.theindependent.co.zw/
Thursday, 18 February 2010
18:56
ZIMBABWEAN businesses want Empowerment Minister Saviour
Kasukuwere’s powers
curtailed to limit possible corruption, businessdigest
has learnt. The
Confederation of Zimbabwe Industries (CZI) and the Chamber
of Mines of
Zimbabwe (COMZ), the two main business bodies have sent a paper
urging
government to amend at least 13 key points relating to the state’s
plans to
compel foreign-owned businesses to “cede” controlling stakes to
indigenous
Zimbabweans.
A document seen by this paper reads: “Any
law that requires the continuous
involvement of an individual will not be
consistent or permanent in its
administration, and is likely to be less
credible and leave room for abuse
or corruption.
The business
bodies also want the term “ceded” changed to “sell”. Instead, a
“sell”
assigns responsibility to the indigenous investors.
The definition of
indigenous must include all Zimbabweans, the document
adds, saying it was
discriminatory. But Kasukuwere defended the definition
saying it was
non-racial arguing the law had only been necessitated by
racial
imbalances.
According to the document, CZI and COMZ want government
to set up
empowerment boards representing all sectors of the economy to
advise the
main indigenisation board. The regulations provide for a single
empowerment
board.
“It is highly unlikely that a single board
under the Youth Development,
Indigenisation and Empowerment ministry will be
sufficiently knowledgeable
about sector specific dynamics, (which is the
domain of various responsible
ministries) and be able to efficiently decide
on applications compliance
programmes. Setting up industry focused boards
will result in better and
more efficient decisions.”
COMZ said
the Indigenisation and Economic Empowerment Regulations of 2010 do
not
support economic growth and put off investors.
Rather, government
should explore equity and empowerment credits for the
sector.
“The regulations as promulgated do not support economic
growth and will not
attract investors. A focus on ownership will not
necessarily empower people
and in fact does the opposite as 51% of nothing
is nothing, “said the
chamber.
Mines also believe that aiming for
controlling stakes is “too ambitious.”
“51% equity shareholding is
too ambitious. The regulations must clearly
state that the final percentage
is a combination of equity plus credits.
Most countries have done away with
the 51% requirement and have come down to
much lower levels.”
The
chamber cited the case of United States and Australia. The two countries
used to have a limit of 28% foreign ownership in broadcasting and
telecommunications but have in the last 10 years removed such
restrictions.
Nearer home, South Africa’s Black Economic Empowerment
is based on 26% local
ownership, the chamber said.
The chamber
also wants government to recognise listing on the Zimbabwe Stock
Exchange
saying pension funds and asset management companies that represent
a large
segment of the population will be the biggest takers of listed
shares.
The chamber also urged government to raise the compulsory
thresholds of
companies targeted from US$500 000 to US$5
million.
This according to the chamber kills the incentive to grow
small businesses
that have potential.
Economist Daniel Ndlela was
quoted saying the new indeginisation rules would
create a system of
patronage.
He said: “The point here is, let me go back a little bit
and say who in fact
are these ‘indigenous Zimbabweans’ that will benefit
from this law? The
letter of the law simply says that the people who
registered their names
with the minister and there will be an allocation
procedure. Definitely this
is patronage, it is a continuation of patronage
as we have seen it in
Zimbabwe and that those who will benefit are people in
the gravy train in
the patronage system. This letter of the law is quite
clear that if you don’t
comply, five years in prison, if you don’t do this,
five years in prison.
The issue here from an economist’s point of view is if
you want investments
from your own country, existing investments and/or new
investments out
there, you are not going to threaten people that come here,
invest but if
you don’t comply you are going into prison for five years.
From an economist’s
point of view, you’ll not have any investors coming into
this country.”
Ndlela added that the spirit of the law did not
encourage investment.
He added: “The spirit of the law itself, not
the letter of the law, the
spirit of the law itself has a morality element
that does not really auger
well with all investments internationally because
you really don’t have a
situation where there’s an allocation of your shares
via a minister at this
point in time. In other words, from an economic point
of view, the existing
investors will lose interest in their businesses. They
will run down the
businesses in the five years so that by the five years
actually you are
taking on something that is no longer at its best, they are
not going to
invest in the five years, during this period and the
enterprises that will
be there will be enterprises that are really down. The
new investors will
not be persuaded to bring in their technologies, bring in
their money here.”
Meanwhile, the main labour union, Zimbabwe
Congress of Trade Unions attacked
the empowerment regulations saying the
rules had the potential to throw
Zimbabwe into economic
anarchy.
“The Zimbabwe Congress of Trade Unions has been following
closely
developments in the country over the past weeks with particular
concern over
the Indigenisation and Economic Empowerment
Regulations.
“We believe this move that is coming under the guise of
empowering
‘indigenous’ people has the potential to throw the country into
anarchy just
like the chaotic land reform programme did. It is ironic that
these
regulations that are anti-investment are taking centre stage when
Zimbabwe
is playing host to a tourism and investment indaba,” the main
labour union
said in statement this week.
But Mugabe is adamant
on the issue saying “49% is hell lot of equity, only
the foolish ones will
say so.”
Mzembi on the other hand believes there is no need to pursue
empowerment in
the tourism sector saying over 80% of the sector is already
in the hands of
blacks.
He said: “Whilst we are aware of the
ongoing debate around the investment
legislation for Zimabwe, we believe all
that might actually be required is
further engagement on the part of
stakeholders.
We are confident that clarification on certain aspects of
the legislation,
explaining areas of apparent contradiction and
insensitivity to valid
concerns of some stakeholders, will bring about
consensus.
“Happily 80% of the tourism sector is already in
indigenous hands and
therefore it has scope for greater external
shareholding, as well as other
innovative models that can give comfort to
the external investor, than might
be the case in our other sectors. But for
us the ability and willingness to
engage is key”.
Chris
Muronzi
http://www.theindependent.co.zw/
Thursday, 18 February 2010
18:05
RECOVERY was the buzzword for 2009 across the globe. This was after
a
devastating financial crisis which started off in the US in 2007 worsened
into a worldwide economic recession. Many countries are now officially out
of the downturn although renewed fears have resurfaced particularly in the
Euro zone.
Greece is the worst affected with concerns that it may
default on its debt
if the European Union does not step in to assist.
Portugal, Ireland, Italy
and Spain together with Greece form the
disreputable PIIGS group of EU
members are facing serious fiscal
problems.
Zimbabwe also staged a dramatic comeback in 2009 after the
inclusive
government ditched the local dollar for multiple foreign
currencies.
On the basis, it must be admitted, of some rather tendentious
calculations,
the economy is projected to have grown by 3,7%, the first
positive growth
since 1999.
In line with that growth, the stock
market also rallied as strong earnings
performance was anticipated. It
gained more than 50% in 2009.
Many investment professionals expected
that 2010 would be a year when
quality growth companies with good earnings
prospects will stand out and
lead the market.
Econet, for one, was
expected to be a star performer this year particularly
as the company
continues to increase its subscriber’s base. It is no secret
that CBZ and
FBC are benefiting from public deposits and could post strong
earnings
growth.
Zimplow has already paid a dividend signaling that its
earnings and cash
flows could be looking good.
Lafarge could also
have a compelling story with capacity utilisation above
70% while at lower
than US20 cents Aico should be any stock picker’s choice.
These stocks and
others with good earnings prospects are expected to be
movers in
2010.
That has not yet happened. Surely, we are barely two months
into the year
and also financial statements have not yet started coming out.
But even
then, it does not seem like the results will have any significant
impact on
the market.
So far this year companies with
questionable fundamentals have outshone
solid blue chips. This surely has
nothing to do with current or projected
company performance but is rather a
reflection of the calibre of investors
in the market.
Small
investors with a preference for penny stocks have been dominant at a
time
foreign buyers who love to buy quality stocks are not active in the
market.
As at February 17 the top performing stock was ZPI with
a 50% uplift on the
price of December 31 2009. The only quality stock on the
top five list which
also includes Trust, Phoenix and Dairibord is
Barclays.
ZPI, like all property companies is grappling with subdued
rentals, low
property sales and high void levels as tenants either closed or
moved out of
expensive properties to contain costs. It is not clear what
business Trust
does currently outside their attempts to get back their
assets from ZABG.
For Phoenix it is a question of a business model in
the wrong place at the
wrong time. Seriously, who cares about brooms, or
brushes when his stomach
is empty.
Dairibord used to be the
leading supplier of liquid milk and milk based
products in the jolly-good
old days but not anymore. This is largely because
of the decimation of the
dairy industry although internal shortcomings are
also to
blame.
Do they sound like stocks that should be on the top of the
performance
table? Surely not! The other counters occupying the upper
quartile are
Astra, BAT, TSL, NTS, Pioneer, Willdale, CBZ, Dawn and TN with
gains in
excess of 15% during the period under review. Fundamentals for all,
except
CBZ, and, probably TSL and BAT, are weak.
There is nothing to
justify the rally in these stocks particularly when most
ZSE bellwethers are
occupying the mid-table.
The likes of Econet, PPC and Delta are
trading at their December 31 levels
while Hippo, Seedco and Old Mutual are
among the heavily capitalised stocks
with prices lower than they last traded
at in 2009. Retail investors are
exploiting the volatility of penny stocks
to trade in or out when the prices
are favourable while big caps remain
inactive as foreign investors steer
clear of the market.
This
situation should not be surprising especially considering all the doses
of
negative information dominating the economy.
First was the logjam that
hit the inclusive government after Zanu PF refused
to make further
concessions during political talks until the MDC-T convinced
the West to
drop sanctions.
That demand was spurned and this week the EU extended the
sanctions by
another 12 months.
The standoff on this issue was a sure
sign of discord amongst politicians
and this unsettled the capital
markets.
The gazetting of the regulations on indigenisation by
government appears to
have killed off investor interest completely.
Ironically, when the
regulations were announced the country was preparing to
host an investor’s
conference aimed at luring foreign capital into the
country.
The regulations rendered the conference largely useless. A
country where
investors are compelled to sell 51% to indigenous partners
cannot be a good
investment destination.
Surely any indigenous person
who can pay for 51% of a company valued at more
than a million dollars
should just start his own business. That way the
economy grows and everyone
benefits. Local investment is not a zero sum
game.
Ranga
Makwata
http://www.theindependent.co.zw/
Thursday, 18 February 2010 17:25
VISITING
Zambia tourism minister Catherine Namugala has advised government
to
streamline investment requirements to reduce bureaucratic inertia for
would-be investors. Addressing delegates at the AfricaInvestor Tourism
Investment Summit in the capital this week, Namugala said regional
governments stand to lose in tourism investment and the 2010 FIFA World Cup
in South Africa owing to unnecessary red tape.
AfricaInvestor is an
investment communication firm advising governments,
international
organisations and businesses on communication strategies for
capital markets
and foreign direct investments in Africa.
“As policymakers it is important
for us to have stable and democratic
societies so that we have an
environment for tourism investment,” Namugala
said. “Our role is to reduce
the hassles for investors to do business. I don’t
think they (investors)
will be happy to go through a process of 100
licences. Not all the licences
are necessary, we have some licences that are
a nuisance for investors…you
can amalgamate them or eliminate them.”
Zambia, she added, has since reduced
the process of bringing in new
investors.
Economic Planning minister
Elton Mangoma told the same conference that
government would this June
transform the Zimbabwe Investment Authority (ZIA)
into a “one-stop shop”, a
move expected to ease investment.
ZIA chief executive officer, Richard
Mbaiwa, admitted the existing
investment policy was deterring
investors.
“There is a lot of interest in retail and distribution sectors in
terms of
establishing malls and retail chains,” Mbaiwa said. “The major
challenge
(according to investors) is starting a business. Investors
sometimes feel
that there are a lot of procedures.”
He said streamlining
the investment exercise could “negate the cumbersome
process of starting a
business”.
Despite the formation of an inclusive government which relatively
eased
political tension and the adoption of a multicurrency system to
control the
erstwhile runaway inflation, a World Bank Doing Business report
last year
said Zimbabwe was still one of the worst places to do business in
the world.
According to the report for 2009/10 released by the International
Finance
Corporation of the World Bank last September, the country has moved
to
position 159 in the ease of doing business rankings ahead of only two
Southern African peers — Angola and the Democratic Republic of Congo in the
183-nation report.
Currently, a would-be foreign investor requires an
Investment Licence issued
by ZIA upon approval of a project proposal
submitted to the authority.
This process, according to the investment
authority, could take up to three
weeks but the World Bank report contends
that it could take 1 426 days to
fully complete the paper work and building
exercise of a warehouse compared
to an average of 260 days in other parts of
sub-Saharan Africa.
For a country that has been starved off major tourism
investment over the
last 10 years, industry players said efforts to increase
hotel accommodation
to 15 000 from the current 7 000 in the next five years
on the back of a
projected double-digit economic growth could be far-fetched
without any
foreign direct investment.
Zimbabwe, according to Africa Sun
boss Shingi Munyeza, has not had any
“mainline hotel” since completion of
the five-star Kingdom Hotel in Victoria
Falls in 1999. He said hotel
accommodation has however increased through
refurbishing peri-urban
apartments into budget hotels and lodges.
On funding tourism investments in
Zimbabwe, Solomon Asamoah, deputy chief
executive of African Finance
Corporation, said the financial institution was
ready to bankroll “right and
structured’ projects.
“We believe that there is no shortage of cash for good
projects,” he said.
“The challenge is to find the right projects and
structures…On long term
(infrastructural) investment, you need some
consistency in the environment
before you invest. I have the checkbook in my
pocket and I’m waiting for
opportunities to invest
in.”
Bernard Mpofu
http://www.theindependent.co.zw/
Thursday, 18 February 2010
17:18
WHEN acting Agriculture, Farm Mechanisation and Irrigation
Development
Minister Ignatius Chombo officially opened the 2010 tobacco
selling season
on Tuesday praising the quality and taste of the Zimbabwean
leaf, he must
have forgotten to say tobacco farming was now one of the best
paying
professions in the country after all expenses are deducted. "Our
foreign and
local buyers should realise that our tobacco is well known for
its good
quality and taste, which is unparalleled in comparison to the crop
from
other tobacco growing countries such as Brazil and
Malawi."
"If it were whisky, it would be equal to the best Scottish
whisky that there
is," he quipped.
Tobacco farmers will be
smiling all the way to the bank after their payout
was raised to US$2 000 on
the stop from US$1 500 which was being paid last
year. The balance would be
deposited in the farmers' accounts.
Observers said a repeat of last
year when tobacco auction floors outside
premises were turned into flee
markets as enterprising businesspeople set up
stalls to lure free spending
tobacco farmers who were paid in hard currency
was on the way.
In
2008 farmers spent weeks sleeping in the open hoping to get paid in the
worthless local currency only to be paid using agro-cheques which were not
accepted by shops.
A wide range of electrical gadgets such as
generators, televisions, digital
video players and clothing items are slowly
finding their way to the auction
floors to be sold to the impulse buying
farmers.
The Tobacco Industry and Marketing Board (TIMB) on Tuesday
refused to bow to
farmers' demands to have all their money being paid on the
spot, arguing
that they wanted to support local banks.
The
auction floors are only opened on Tuesdays and Thursdays. TIMB said the
current system of holding two sales per week would be reviewed once
deliveries got to 3 800 bales per day.
However some analysts said
the reason was because they wanted to control the
farmers spending spree,
which was similar to war veterans when they were
given the then handsome
figure of Z$50 000 each in 1997.
"If you look at the quality of
tobacco that is on offer here, amounts paid
to farmers and some of the
prices that are being offered, we are definitely
heading for a better season
this year," Chombo said.
"We might not have discovered oil in the
Zambezi, but we have our soil and
unique climate that enable us to grow cash
crops such as tobacco which
assist the country in a significant way," he
said.
Chombo said the early opening of the marketing season should
help farmers,
especially newly resettled ones, to plan for a bigger crop
well in advance.
Farmers interviewed however said this year's selling
season was opened early
because;
* Tobacco seed beds are
done in June, while the selling season
traditionally started in May ending
in August a situation which usually
compromised preparations as they always
failed to meet deadlines;
* Some farmers are diverse and wanted to
concentrate full time on a
single crop. Most tobacco farmers are also into
wheat and winter crops;
* Early selling would enable farmers to repay
debts as many said they
failed to access loans from banks;
*
Those who access loans said an early opening would ensure that they
would
escape high interest rates prevailing at banks if they repaid early;
* It is also alleged that some white farmers said they wanted to sell
their
crop before being relocated;
* Contract tobacco farmers said early
selling would enable them to apply
for new loans on time; and
*
Many farmers do not have storage facilities for their tobacco.
Tobacco
Growers' Trust president Wilfanos Mashingaidze said the prices on
offer
where encouraging adding that he expected them to firm as the selling
season
progressed.
A total of 77 million kg of tobacco is expected to have
been auctioned by
the end of sales in June.
Prices opened at
about US$4 per kg for the best grade which was lower than
the top price of
$5,50 per kg that farmers had expected remained largely
unchanged
yesterday.
When the auction floors opened a total of 288 bales were
on offer at the
Tobacco Sales Floors while about 200 bales were laid at the
Zimbabwe
Industry Tobacco Auction Centre.
TIMB chief executive
Andrew Matibiri said he was optimistic that the target
of 77 000 million kg
would be achieved and that the prices on offer and
payments would encourage
farmers to grow more "quality crop".
"This is encouraging given that
these are just the primings, the lower leaf,
that are coming onto the
floors. We hope for better prices as the season
progresses as the upper leaf
starts coming in," Matibiri said.
Matibiri said TIMB was also
awaiting prices on offer when Brazilian markets
open in the next week or
two.
Brazil is the world's largest tobacco grower while in Africa it is
Malawi,
whose floors are expected to open inthree months.
Paul
Nyakazeya
http://www.theindependent.co.zw/
Thursday, 18 February 2010 17:12
SHOULD
the world bother about Zimbabwe's future? New evidence now points to
the
possibility that it shouldn't trouble itself about the country's future,
because Zimbabwe's government, still being run by the party that failed to
win the last election, has decided that the country should not have one.
Having rejected concerns that investment would be discouraged by laws
designed to force non-indigenous investors to give up controlling interests
in local companies that they formed, or helped to create, this government
has now published the regulations that are intended to force the changes of
ownership the politicians want to see take place.
According to
the Indigenisation and Economic Empowerment Act, an indigenous
Zimbabwean is
"any person who, before April 18 1980, was disadvantaged by
unfair
discrimination on the grounds of his or her race, and any descendant
of such
person, and includes any company, association, syndicate or
partnership of
which indigenous Zimbabweans form the majority of the members
or hold the
controlling interest".
The main provisions of the Indigenisation and
Economic Empowerment
Regulations are that:
"Every existing business with
an asset value of US$500 000 or more, whether
foreign or domestic, has to
submit, by April 15, completed official forms
describing the business and
showing its plan for ensuring that, within five
years, indigenous
Zimbabweans will own at least 51% of the shares.
Failure to submit
the forms, after a further 30 days' reminder, will render
the owner of the
business, or every director, guilty of an offence and
liable to a fine
and/or imprisonment for up to five years.
Plans to restructure or
unbundle businesses, plans to merge or demerge
businesses and investment
proposals that require an investment licence must
be submitted for approval
before being carried out.
Any failure to comply will render the owner of
the business, or every
director, guilty of an offence and liable to a fine
and/or imprisonment for
up to five years.
Companies requiring
supplies of goods and services will be obliged to
procure these from
companies controlled by indigenous Zimbabweans that can
offer terms that are
no less favourable. Non-compliance will make those
responsible guilty of an
offence and liable to a fine and/or imprisonment
for up to five
years;
Empowerment assessment ratings are to be supplied by each
company once a
year to the minister within 21 days of being advised of the
requirement and
failure to comply will render the owner of the business, or
every director,
guilty of an offence and liable to a fine and/or
imprisonment for up to five
years.
The minister may appoint his
own valuator if the valuation figures submitted
are suspect. Persons guilty
of claiming they are shareholders, but are found
to be only nominees of
actual non-indigenous shareholders, or guilty of
submitting information
found to be false, will be guilty of committing an
offence and liable to a
fine and/or imprisonment up to five years.
Sectors that are to be
reserved for indigenous Zimbabwean investors include
the growing of food and
cash crops, the provision of buses, taxies and
car-hire services, retail and
wholesale trade, barber shops, hairdressing
and beauty salons, employment
agencies, estate agencies, valet services,
grain milling, bakeries, tobacco
grading, processing and packing,
advertising agencies, milk processing and
the provision of local arts and
crafts as well as the marketing and
distribution of these items.
Business owners wishing to identify
suitable indigenous partners will be
invited to register their names in a
database to be established by the
minister, and the names of indigenous
people who wish to become business
partners will also be recorded in the
minister's database."
In trying to assemble useful thoughts on the
whole package, I am having
great difficulty setting aside the destructive
short-sightedness of the
proposals.
Some people might believe
that the methodical nature of the process,
together with the threats of
severe penalties for anything other than
complete compliance, must
automatically lead to that economic empowerment
that so many have found to
be so elusive.
But it won't. Government's principal achievement, if
all this happens, will
be the disempowerment of the country's most important
productive-sector
investors.
They do presently wield influence in the
market place and this is mainly
because of their success in producing
products that the markets are prepared
to buy.
In creating acceptable
goods or commodities, they also generate jobs, export
revenues, domestic
revenues and tax revenues.
To government, however, all this clearly
adds up to rather too much
influence.
By forcing them to relinquish
their majority shareholdings, their power can
be reduced, simply because the
government's influence over the new owners of
51% of the shares can quickly
be used to change the composition of the
boards of directors of every
important company.
The idea is destructive for the two main reasons,
that existing investors
will lose interest in their companies; so most of
these enterprises will
soon start going downhill, and that new investors
will be persuaded to take
their technologies and their money to almost
anywhere other than Zimbabwe.
And the idea is short-sighted because
economic growth rates will be slowed,
the population will be deprived of the
needed improvements and the best
Zimbabwean skills will seek their fortunes
elsewhere.
On top of that, access to credit to carry our infrastructural
reconstruction
will not be extended while the country so clearly shows the
whole world that
it is once again deliberately sabotaging its own ability to
service debt.
Zimbabwe has so little money that it desperately needs
foreign investment.
Why has government chosen to turn the country into the
least attractive
investment destination on Earth?
It can only be
to recover its political authority. But while that might make
a few hundred
people feel temporarily smug and content, the other 12 million
Zimbabweans
will be waking up to what this has cost them and who is really
to
blame.
Robertson is an independent economist.
http://www.theindependent.co.zw/
Thursday, 18 February 2010
16:33
TAFATAONA Mahoso has been waging war against the Law Society of
Zimbabwe for
several years now. It is therefore surprising that he can't
spell Sternford
Moyo's name correctly. It is not "Stanford". Mahoso was
using his tedious
column on Tuesday to attack the Zimbabwe Independent and
other publications
for being part of the campaign of "illegal" sanctions and
"criminal
defamation against Zimbabwe and Zimbabweans which the MDC
formations mounted
on behalf of white Rhodies and their Anglo Saxon sponsors
in order to make
the illegal and racist sanctions appear to be
justified".
Phew! Apart from anything else he clearly needs an
editor.
Mahoso compares the MDC-T's call for a calibrated reduction in
sanctions to
a torturer removing the instruments of torture slowly in order
to relish the
prolonged suffering of the victims.
Interesting isn't it
that Mahoso should invent a case of torture when last
week we carried MDC-T
transport manager Pasco Gwezere's very real account of
torture at the hands
of state agents. He said at one time they tied his arms
and legs together
and put a tow bar beneath his knees and suspended him
between two tables and
began to beat him. They called this torture method
"Birchenough
Bridge".
When this didn't work, Gwezere said, "they resorted to "the
undertaker",
whereby they threw him into a shallow grave and shovelled earth
on top of
him. They showed him a report they said they would send to the
editor of a
state newspaper which claimed that he had escaped from police
custody.
He said the torturers said they would give the statement to the
press after
he failed to cooperate and they had killed him.
So here we
have Mahoso engaged in fictitious drivel about a defamation
campaign against
Zimbabwe involving "slow torture" when he ignores the
well-reported use of
torture as a weapon against individuals seen as
opponents of the party he so
slavishly supports.
Then Zimbabwean authorities bleat about sanctions when
they have sick
apologists for dictatorship like Mahoso writing in their
newspapers.
Who is responsible for the chaos in the corridors of
power?
At three o'clock on Monday afternoon we got a message from a Mr
Nyagumbo in
the president's office inviting our editors to a briefing with
the president
on Wednesday. The next day, Tuesday, at 9:15 the briefing was
cancelled.
This is the second time this has happened. A press briefing with
the
Minister of Media, Information and Publicity was scrapped at the last
minute
towards the end of last year.
What is the matter with these
people? If a date is made it should be kept.
George Charamba promised the
media greater access to the president at a
Unesco workshop last year. But we
haven't heard from him since.
Sacked Arda general manager Erickson
Mvududu, giving evidence to the
Parliamentary Portfolio Committee on
Agriculture last week, opened a can of
worms with his description of how
Arda goes about its business.
He said during his 17 months at Arda he
witnessed rampant looting of
equipment by influential people and corruption
by senior managers.
He said he suspended a manager who had placed his farm
workers on Arda's
payroll and was cannibalising the parastatal's tractors by
stripping them of
spares to repair his own, the Herald reported.
At one
stage Arda had 20 000 head of cattle but this was reduced to 3 000
owing to
theft and abuse by senior managers.
"I noted there was some equipment that
had not been utilised for five to 10
years," the Herald reported Mvududu as
telling the committee, "but was just
there for some people to come and
strip.
"You would find that a manager might not be producing at an Arda farm
but if
you go to his farm he would be producing."
Could there be anything
more emblematic of Zanu PF's corrupt cronyism than
this?
And who was
accountable for this shocking state of affairs? The minister,
Joseph Made,
will remain safely ensconced in his office because he is the
president's
agricultural advisor.
Arda's board chairman Basil Nyabadza had a ready
explanation for all this.
It could not be divorced from "illegal Western
sanctions", he claimed.
That is the most disgraceful excuse for mismanagement
we have heard for a
long time. But it confirms what we know about parastatal
bosses and the
sheltered employment Zanu PF affords them.
"Come and feed
at this trough," they are told!
Here's another excuse worth noting. AAG
president Supa Mandiwanzira attacked
Nestlé last year for failing to
indigenise.
"As AAG we cannot accept this continued harassment of the Head of
State," he
told the press.
"The First Family is a symbol of economic
empowerment and they have taken a
battering simply because of the steps they
have taken to empower the
majority."
So the First Family has taken a
"battering" because they have "taken steps
to empower the majority"? Was it
the majority that got empowered Supa? Don't
we recall Zanu PF proclaiming a
one man/one farm policy a few years ago?
What happened to that?
Perhaps
Supa could tell us.
In an interview with the Herald last Saturday Arthur
Mutambara was in
gushing mode.
"Zimbabweans must show maturity by giving
respect where it is due," he said.
"President Mugabe is a founding father of
the nation who was part of the
liberation struggle. He has generational
results which you cannot take
away."
Not content with this glowing
tribute, the rocket scientist continued to
gush.
"You cannot take away
1980 which he brought to Zimbabwe and 1980 will be
celebrated 500 years from
now. These are generational results, so is 1776 in
America and 1876 in
France.
"You cannot take away President Mugabe's education policies. I am a
product
of his education policy."
In that case we are sure Prof Mutambara
would not mind "educating" us about
the events of 1876 in France. It was as
far as we know a fairly quiet year.
But the educated one might know
something we don't.
Now 1789, that was a different matter. So was 1793, 1815,
1830, 1848 and
1870. But 1876? Nothing. Nada Zilch!
We have
occasionally in this column drawn attention to Zanu-PF proxy
organisations
masquerading as part of civil society. These include outfits
like Martin
Dinha's Zimbabwe Lawyers for Justice which was active in the
Sadc Tribunal
case, and the Federation of Non-Governmental Organisations.
But more recently
a couple of more dubious organisations have appeared on
the scene.
These
are the Zimbabwe Exhumers Association which, it seems, won't let
fallen
heroes rest in peace, and the presumably related Zimbabwe
Coffin-Makers
Association.
Then this week another one popped up. Youth in Natural Resources
Management
made itself known in support of the Indigenisation Act. Its
chairman is
Wellington Peyama who was happy to say youths needed to benefit
from
Zimbabwe's resources.
Is there no end to this flood of Zanu-PF
pawns? And is there an office in
Munhumutapa Building where fictitious
outfits are invented to provide
helpful statements for Herald
stories?
Muckraker is grateful to the Embassy of the United States for
their
Christmas card which arrived on February 10. Is this a record, we
asked
ourselves? The capitol is shown covered in snow and we must assume the
same
blizzard delayed the reindeer on their journey south. Or perhaps they
were
recalled for safety checks.
http://www.theindependent.co.zw/
Thursday, 18 February 2010
16:12
GOVERNMENT (or, to be more specific, the Minister of Indigenisation
and
Economic Empowerment, undoubtedly instructed by his political masters)
has
enacted a demonic death sentence upon the Zimbabwean economy. In one
fell
swoop the positive initiatives of 2009 towards the long-awaited
economic
recovery have been nullified.
Instead, a lethal suicide pill
has been force-fed into the economy, totally
reversing the significant
upturn that has been progressively developing over
the past
year.
With callous disregard for the distressed circumstances of more
than 80% of
Zimbabwe's poverty-stricken population, the economy has now been
set upon
total decimation.
Zimbabwe's people, with the exception of
the very few, self-enriched and
usually politically well-connected, have
been sentenced to even more
poverty, malnutrition and
starvation.
The disastrous act of setting the Zimbabwean economy upon
a path of total
collapse was the enactment of Statutory Instrument 21 of
2010, comprising
the Indigenisation and Economic Empowerment (General)
Regulations, 2010.
That statutory instrument is as evil, racist and
discriminatory and
economically destructive as was the abominable Land
Apportionment Act of
1930 - long before Zimbabwe's Independence.
It
is as unjust and pernicious as was legislation during the abysmal UDI
era.
It is as iniquitous and contrary to the best interests of Zimbabwe and
its
people as was the ill-conceived, counter-effective Land Acquisition Act
of
two decades ago, devastatingly implemented since the turn of the
century.
And yet again it is in blatant conflict with the diverse
Bilateral
Investment Promotion and Protection Agreements
(Bippas).
For over 50 years this columnist has argued, urged and
pressed for dynamic,
positive, vigorous policies to achieve wide-ranging,
extensive economic
empowerment for the Zimbabwean people.
But the
Zanu PF government has never done so. Instead, it has continuously
espoused
a distorted version of the Robin Hood philosophy.
It has unequivocally
pursued an intention of expropriating from the
perceived rich, in order to
render them poor, so as to enrich a selected few
(generally unduly and
unaccountably wealthy), whilst intensifying the
poverty of the
majority.
In pursuit of these objectives, and after many years of
confrontational
policy statements, parliament and the senate, in late 2007,
passed the
Indigenisation and Economic Empowerment Act,
2007.
Constitutionally belatedly, in 2008 the legislation was accorded
presidential assent (coincidentally shortly before the March 2008
parliamentary and presidential election), and was gazetted on March 7
2008.
That legislation was a masterpiece of legislative
vagary.
Save for the stated objective that government should "endeavour
to secure
that at least 51% of the shares of every public company and any
other
business shall be owned by indigenous Zimbabweans", and shall
prioritise
sourcing of goods and services by government and the private
sector from
such businesses, the legislation to all intents and purposes
vested a "blank
cheque" in the hands of the minister.
It empowered
him (virtually without limitation) to prescribe and enforce all
such
regulations as he deems fit to achieve the prescribed objective. The
minister has now encashed that blank cheque!
Within 45 day of
March 1 2010, every business (and not, as misunderstood by
some, only those
with assets exceeding US$500 000) is obliged to lodge a
Form of Notification
of Extent of Indigenisation, and encompassing an
Indigenisation
Implementation Plan (ie by April 14 2010) with the minister,
and any
business commenced in the future must do likewise within 60 days of
commencement of business.
That Indigenous Implementation Plan
must be such as will result in not less
than 51% of the controlling
interests in the business vesting beneficially
in indigenous Zimbabweans,
save and except to such extent as the minister
may agree that, for a period
of time, a lesser percentage may apply
(primarily determined having to the
magnitude of investment, the extent of
associated technology transfer, and
the extent of the business's
contribution to the wellbeing of
society).
The legislation defines "indigenous Zimbabwean" as being
"any person who,
before April 18 1980, was disadvantaged by unfair
discrimination on the
grounds of his or her race, and any descendant of such
person, and includes
any company, association, syndicate or partnership of
which indigenous
Zimbabweans form the majority of the members or hold the
controlling
interest".
The regulations also reserve, against
foreign investment, in favour of
indigenous Zimbabweans, all operations in
agriculture (primary production of
food and cash crops), transportation
services encompassing passenger buses,
taxis and car hire, retail and
wholesale trade, barber shops, hairdressing
and beauty salons, employment
agencies, estate agencies, valet services,
grain milling, bakeries, tobacco
grading and packaging, advertising
agencies, milk processing, and provision
of local arts and craft, and
marketing and distribution
thereof.
The immediate results of the Machiavellian enactment of the
regulations was
disastrous, bringing to an instantaneous halt Zimbabwe's
economic recovery,
and knocking a very solid nail in the coffin of critical
foreign direct
investment and domestic investment.
It closed
potential access to essential lines of credit to restore substance
to the
money market, recapitalise commerce and industry, and rehabilitate
infrastructure.
It has fuelled the abrupt loss of all confidence
within the business
community, which is a prerequisite for economic
wellbeing and growth, and
has once again destroyed prospects of
reconciliation and positive and
constructive interaction with the
international community. Once again,
Zimbabwe demonstrates complete
contempt for Bippas.
No investors, providers of technology-transfer
and of access to their
markets, can realistically be expected to subjugate
themselves to being
junior partners, devoid of authority in the investment
ventures.
With such an expectation in the hands of government, the
markedly increased
interest in investment that has progressively been
developing has now been
annihilated.
Already, within less than a
fortnight of the gazetting of the economic death
sentence, investors who had
planned on hundreds of millions of dollars of
investment, and upon
employment creation for considerable numbers, have
peremptorily withdrawn,
and now seek opportunities elsewhere.
Concurrently, innumerable
established enterprises are now seriously
contemplating closure of their
businesses, and disposal of the underlying
assets. Instead of employment
creation, Zimbabwe now faces considerably
increased
unemployment.
Zimbabwe is now confronted with imminent economic
contraction. That which
government has done oblivious to consequences, is
more catastrophic than the
Haitian earthquakes, the New Orleans hurricanes
and typhoons, the tsunamis
that devastated several Far East countries, and
other natural devastating
catastrophes.
Zimbabwe will soon rank as
the world's most impoverished country, in worse
circumstances than
Darfur!
Although past track record is not suggestive that government will do
so, if
it genuinely cares for Zimbabwe, instead of itself, it will repeal
the
regulations, providing convincing assurances of non-recurrence thereof,
and
will work rapidly to achieve genuine, beneficial, economic empowerment.
http://www.theindependent.co.zw/
Thursday, 18 February 2010 15:55
AFTER
reading Jonathan Moyo's article (Sunday Mail, February 14) one feels
compelled to conclude that the professor is apparently objective only when
bitter. To conclude any other way would be a clear disregard of Moyo's
reasoning.
No doubt, Moyo's exposition of the politburo in its
current form and the
limitations thereof provides one with an unprecedented
damning indictment of
Zanu PF by one of its very own cadres, the kind of
which came only from
Joshua Nkomo before the unity accord.
What
ramifications there are to follow, if any, are not of consequence for
present purposes.
What Moyo has sought to do, and has done
successfully, is explain to Zanu PF
that indeed times are changing and that
the party had better correspondingly
change with them.
Perhaps this
is one amongst the many early signs of the coming of democracy
to Zimbabwe
for not only was Moyo's article made available through internet
sites, it
was, in fact, first published in the Sunday Mail - one of the very
few
articles critical of President Robert Mugabe to have emanated from the
state
mouthpiece in a very long time.
Whatever speculation there was about
the internal troubles of Zanu PF, Moyo
puts them to rest in his article when
he brazenly explains that factionalism
has become the order of the day in
that party.
Apart from Mugabe superficially denouncing factionalism and
downplaying its
extent, no other person to my recollection had been on
record until Sunday
confirming that factionalism existed, let alone on the
scale portrayed by
Moyo.
All this while we were made to believe that
factionalism was a term unique
only to the MDC and that Zanu PF did not need
to be reminded of the truism
that anything anywhere was better off united
than divided.
In my opinion, unless something is done and done with the
expedition it
requires, that Zanu PF will soon be history is a foregone
conclusion.
I am not sure how Mugabe must feel right now but there can be
nothing worse
than facing fierce opposition not only from without but also
from within.
Yet there is a general disinclination within his party to do
things the
democratic way.
It is becoming increasingly clear that
just as Mugabe has instilled
sustained fear in the ordinary man and woman on
the street he has also done
the same with those around him who might
occasionally find it instructive to
question the status
quo.
Instead of owing it to the people to salvage whatever there is
left of
Zimbabwe and work to better what could otherwise have been a worse
situation, Mugabe continues to exhibit stunning detachment from the welfare
of the nation.
What we seem to get a lot of these days is the
unashamed compulsion to have
sanctions targeted at otherwise unforgivable
individuals relaxed.
What is worse the relaxation of those sanctions is
made a prerequisite for
any concession aimed at making Zimbabwe
self-sufficient, democratic, safe
and God fearing.
By maintaining
such a ludicrous stance, what Zanu PF is effectively saying
is: provided
those sanctions abroad remain in place, we, back home, will
likewise keep
our sanctions on the people of Zimbabwe in place.
Zanu PF must be
told without equivocation that the destiny of the majority
of Zimbabweans is
not and cannot be inextricably linked to that of the evil
few in our midst.
Everyone knows that power corrupts but let it not corrupt
even the
conscience for there is nothing more left of any human being if
their
conscience is gone.
The indigenisation legislation is a preposterous
measure, and one that
should not even be considered a possibility in
circumstances such as ours.
South Africa, for instance, can afford to enact
and implement the Black
Economic Empowerment Act (BEE) but not even they
would encourage BEE to have
sweeping consequences of the type contemplated
by Indigenisation minister
Saviour Kasukuwere. The Act is some kind of a
joke and must be loathed for
what it is: a dry joke!
Hazvisekesi.
I am not sure what policies the global political
agreement has come up with
but whatever they are I am certain this type of
legislation is discernibly
against the policy framework relevant to the
Zimbabwe of today and should,
accordingly, be set aside in sync with the
country's present needs.
If there is one thing that is most
remarkable about the people of Zimbabwe
it is that they are an enduring
lot.
Meanwhile Mugabe remains the unpopular, beleaguered, indifferent
despot who
caused and continues to cause his own people's suffering of
frightening
proportions. From Gukurahundi to Murambatsvina to the June 27
2008 polls, he
has often resorted to methods that served him well in the
past: violence and
indifference.
In the circumstances, it is
mischievous and rather presumptuous of Moyo to
conclude that every
Zimbabwean, knowingly or unknowingly, is Zanu PF at
heart. If anything,
there is now more reason to conclude that every
Zimbabwean, and I mean every
Zimbabwean, consciously or otherwise is
anti-Zanu PF!
Psychology
Maziwisa is the interim president of the Union for Sustainable
Democracy.
http://www.theindependent.co.zw/
Thursday, 18 February 2010
19:44
THE much-awaited appointment of a new Zanu PF politburo has come
and gone -
full of sound and fury signifying nothing. It was another
squandered
opportunity, following the recent uneventful congress, for
renewal and
change by a party struggling for survival in the increasingly
shifting
political sands.
The politburo appointments announced
last week proved to be nothing more
than old wine in new
bottles.
Instead of taking the chance to inject new blood into his
sclerotic party,
President Robert Mugabe further sapped the floundering
organisation via the
controversial selections.
His hidebound
appointments retained the old guard wholesale, while clinging
like a leech
to the past.
As a result the reform-minded and modernising wing of
the party was left
seething. Mugabe's appointments confirmed Zanu PF's
status as a political
museum frozen in times gone by.
It is
difficult to see how eventually Zanu PF would avoid the fate of Unip
in
Zambia, MCP in Malawi and Kanu in Kenya.
The party has failed to learn
anything from Mozambique, Namibia and
Tanzania. South Africa and Botswana
also offer useful examples for Zanu PF
albeit in a different
way.
This view is now widely held in Zanu PF, mainly by the
disgruntled Young
Turks, including Jonathan Moyo who voiced his withering
criticism on the
issue earlier this week, and enlightened members of the
party.
Party members and analysts also strongly share this view. They
believe
Mugabe will go down with Zanu PF.
At a time when Mugabe
needed to pluck up enough courage to bite the bullet
of change and bring in
cutting edge and enterprising cadres to steer the
sinking ship through the
turbulent political waters, and reinvent the party
in the process, the
veteran leader stuck with his diehards who actually
presided over the Zanu
PF's defeat by the MDC in 2008.
Assisted by his clueless subordinates
in the presidium, Mugabe threw more
aging and tired faces into the
fray.
He made no attempt whatsoever to address the party's simmering
succession
crisis and signal a new political direction to ensure renewal and
survival.
Mugabe made no effort even to protect what remains of his
chequered legacy.
Although there is so much talk about possible
elections, more realistically
in 2013, Mugabe and his subordinates failed to
assemble a new efficient
electoral machinery to prepare the party for the
polls without banking on
violence and brutality.
Ultimately
Mugabe only succeeded in fast-tracking Zanu PF towards
disintegration and
collapse, a fate that looks increasingly inevitable with
each passing major
event.
Instead of renewing the party to capture the imagination of
the dynamic
youths who are in the majority and their votes and also show the
world he is
changing his ways, Mugabe dug in and refused to adapt to the
changed and
changing times.
This gritty resistance to change was
clearly reflected in the rationale and
strategy behind the
appointments.
Like most unpopular leaders who have overstayed their
welcome in power and
live in persistent fear of removal, Mugabe chose to
surround himself with
deadwood and set the party down a blind
alley.
At the expense of youth and talent, old horses like Rugare
Gumbo and Cain
Mathema were retrieved from the woods and charged with the
responsibility of
revamping a dysfunctional department of information and
publicity as
secretary and deputy secretary respectively.
They would
have to ensure the overhaul and modernisation of their party's
information
infrastructure and system, as well as its communication
approach, to keep in
touch in this Age of the Internet.
They will also have to deal with
complex cyberspace challenges facing the
party.
Of course, this
would be difficult for them. Not least because their
critical skills for the
job are history and factional loyalties.
A cursory check of the
politburo line-up reveals compelling anecdotes.
The politburo
members were mainly selected more for factional allegiances
and blind
loyalties to the Dear Leader than their abilities.
When former
African liberation movements took power elsewhere, their
governments were
often driven by militaristic mindsets, categorising people
as winners and
losers and operating along the lines of command and
obedience.
Such
trends are evident in Zanu PF. Democratic discourse in search of the
common
good is frowned upon and detested.
The winners' and losers' paradigm
in this case is particularly evident in
the key appointments to the
department of commissariat of Webster Shamu and
Ephraim Masawi, who are
members of the Mujuru faction.
While most members of the Mujuru
faction were retained and promoted to the
feeding trough, those in the
Emmerson Mnangagwa camp were either frozen out
or left parked in
insignificant positions. Newly elected vice-president John
Nkomo also got
his own cronies into the politburo.
In the end, the politburo was
largely stuffed with Mugabe, Mujuru, Mnangagwa
and Nkomo adherents, among
other hangers-on. Although elites and their
cliques gained, the party was
the main loser and could be the last casualty.
Dumisani Muleya
http://www.theindependent.co.zw/
Thursday, 18 February 2010 19:41
ZIMBABWE
has scored consistently poorly in surveys that determine the
business
environment in the country.
Last year the country ranked lowly in the
highly acclaimed 2010 Index of
Economic Freedom.
The Index of
Economic Freedom ranks countries according to criteria that
assess a
country's economic openness, trade and the efficiency of domestic
regulators, freedom from corruption, property rights and the rule of
law.
Zimbabwe was ranked 178 out of 179 countries assessed in the report
compiled
by the Washington-based Heritage Foundation and the Wall Street
Journal. The
report was released last month.
In 2008, Zimbabwe
was in the same position.
Official explanation for Zimbabwe's dismal
performance has always been that
Western-imposed sanctions have impacted
negatively on the country's business
environment. But this is drawing a red
herring across the track.
The Africa Consolidated Resources (ACR)
saga puts this point across very
sharply.
The London Stock
Exchange-listed company secured a claim at the Marange
diamond fields in
2005 amidst great optimism.
Only in November last year chief executive
officer Andrew Cranswick told the
World Gold Conference in Johannesburg:
"Zimbabwe is one of those
mineral-rich countries that cannot be ignored any
longer.There are still
some cowboys operating on the ground. However,
(President Robert) Mugabe and
(Prime Minister Morgan) Tsvangirai recently
stood up and said that mineral
rights in the country had never been
threatened, and that this would be
maintained and respected going forward.
it is important to note that
Zimbabwe is a vector that is moving in the
right direction with a delta of
years of potential production still in the
ground, ready to be discovered
and mined."
But in his address
Cranswick was not without a feeling of foreboding. Over
and above the
threats posed by the "cowboys", he said: "Zimbabwe is going
through an
evolutionary process of change that will, unfortunately, not
happen
overnight, but the country is moving in the right direction. Just
like the
roads in the country, this journey will also be filled with
potholes."
Indeed the "potholes" have been many and deep; only a
year after securing
the Marange claim ACR was kicked out by the Zimbabwe
Mining Development
Corporation (ZMDC) and the military took over during
their bloody crackdown
on illegal diamond panners. But it also turned out
that more than just
getting rid of the illegal panners, the soldiers were
joined by government
officials and police in plundering the gems for their
own enrichment.
In September last year after a three-year battle ACR
won in the High Court
its legal battle against the government. The judgment
by Justice Charles
Hungwe was viewed as a landmark; it was hoped it would
allow the inclusive
government to demonstrate to the world its preparedness
to abide by the laws
of the country and court judgments.
But the
government appealed the High Court decision and while the appeal was
still
before the country's highest court the Ministry of Mines and Mining
Development cancelled ACR's licence on Monday this week.
Not only was
the cancellation illegal because the issue was sub judice but
it flew in the
face of a Supreme Court judgment by Chief Justice Godfrey
Chidyausiku on
January 25 that determined that the diamonds the ZMDC had
mined from Marange
belonged to ACR and should be delivered to the Reserve
Bank for
safekeeping.
Chief Justice Chidyausiku in that determination averred that
the ownership
of the diamond fields had not been finalised.
The 129
000 carats of diamonds were delivered to, but later removed from the
Reserve
Bank on the spurious argument that a letter written by the Registrar
of the
Supreme Court had meant that the January 25 order had been
reversed.
Needless to say three days after the cancellation of the
ACR licence
Chidyausiku was understandably angry with government over the
latest
development. He said the removal of the diamonds from the central
bank was
unlawful and contemptuous of the highest court in the
land.
The flip-flops in the ACR saga betray sinister stratagems in
the whole
process in which the Marange diamonds have been
handled.
The recent hearings in the House of Assembly in which the
Portfolio
Committee on Mines and Energy interrogated the awarding of
tenders to two
little-known companies, one of which specialises in
collecting scrap metal,
raised eyebrows about the probity of those entrusted
to manage the process.
The whole process reeks of
corruption.
To clean it up the award of licences to Mbada Diamonds and
Canadile must be
investigated by an independent commission and if it was
corruptly done those
with dirty hands must be exposed.
In the
meantime Justice Hungwe's judgment in which he validated the ACR
claim
should be respected. It is vital that the ownership of the diamond
fields be
finalised in the best interests of the country; and quickly too.
http://www.theindependent.co.zw/
Thursday, 18 February
2010 16:20
I HAVE been following the discourse around the recent
promulgation of the
indigenisation regulations and I am disappointed by the
collective paralysis
that seems to afflict the nation in policy formulation.
To say the least,
the debate surrounding the regulations is emblematic of
this paralysis as
contestations for or against the new policy to dilute
foreign shareholding
in business have failed to resonate with national
aspirations to fight
poverty and ensure food on the table.
The
debate has revealed the paucity of constructive debate on key national
issues. In Zimbabwe, policy issues are debated on the basis of us and them.
It is black against white. It is left versus right.
It is the MDC
against Zanu PF. It is irrationality fighting pointlessness.
The nature of
debate has ensured that we do not get solutions quickly enough
because of
the tendency to argue from transfixed positions. We have become a
nation
motivated by outstanding issues.
There are two very distinct schools
of thought in the indigenisation debate:
companies will be grabbed and given
to well-connected cronies, and the
other: black empowerment is crucial to
correct a historical wrong.
The debate goes something like: Giving
companies to blacks will result in
destruction of capital. Look at what
happened on the farms... The refrain on
the flipside plays like: We cannot
continue to allow Anglo-Saxons to lay
claim to our heritage. We won our
Independence through the barrel of a gun.
Predictably, political
protagonists in the lame inclusive government have
appointed themselves
gaffers for the two feuding corners. They will
determine the course and
direction of this debate. I know exactly where it
is destined; somewhere in
a chest of drawers marked "Outstanding Issues".
This does not however
stop the stronger arm of Zanu PF from implementing the
policy.
We
have seen this before. The regulations will be implemented in a contested
environment where political rivalry will be ratcheted up to either prove a
point or to sabotage the process altogether.
Evidence of this
damaging competition is already evident. Prime Minister
Morgan Tsvangirai
has come out to say that the regulations were promulgated
without his input
and are therefore null and void.
His opponents in Zanu PF contend that
the PM is playing truant and should
not sabotage government efforts. There
is no middle ground.
I want to submit that all this is unnecessary
and in fact detached from the
basic needs of poor peasants and millions of
unemployed youths.
Arguments that have been put forward by Supa
Mandiwanzira's Affirmative
Action Group and big business have missed the
whole concept of empowering
Zimbabweans in order for them to regain their
dignity as a people.
For 30 years, we have existed under a political
culture that has
disempowered the people even though there have been noises
along the way of
empowerment and wealth distribution.
We have a whole
generation of youths who have subsisted on alms from donors.
There are
business people and farmers whose wealth or success can be easily
traced
back to patronage projects of yesteryear.
Impoverished rural folks
queuing at a feeding centre think that they are
being empowered by donors,
so is the chef admiring tractors provided under
the mechanisation programme
and a banana crop stolen from a deposed farmer.
The fat new farmer chef
and the emaciated villager labouring under a 20kg
bag of USAid-donated grain
cannot claim to be empowered.
They have become subservient to systems
that stunt their ability to
contemplate alternative ways of existing and
generating a belief in their
own abilities to have some role in enacting
change.
The debate on the indigenisation policies should assume a
broader dimension
to tackle the critical questions of what empowerment means
and how to
empower an impoverished and previously oppressed
majority.
The debate should be both informative and have broader
conceptual relevance
instead of the narrow fight about shareholding quotas
in companies.
I have been to village dares where poor peasants bake under
the afternoon
sun being told how a chef has been empowered through a tractor
donated by
government.
At the dare, women will dance their pelvises
loose in celebrating the
"empowerment" and then go back home to face their
hungry children.
I dread seeing the same script being enacted at national
level when the
nation will be asked to celebrate acquisition of 51% in a big
bank by fat
farmer chefs when more than half the population is surviving on
less than a
dollar a day per individual.
Basic empowerment is
ensuring people can benefit from what they have.
Economist Daniel Ndlela
summed up our situation this way in a panel
discussion on SW Radio: "DRC has
minerals, 100% are indigenous but there's
no activity taking place in some
of those minerals.
You can equally convert Zimbabwe into 100% title and
nothing takes place.
What is good for Zimbabwe? Is it for people to sit to
play God and say I own
100% of Zimbabwe but I don't have the means, or I own
100% of the car but I
don't have fuel? Their car may be worth US$100 000 but
if you don't have one
litre of fuel, the car won't move."
We need
broader public discussion on the nature of economic empowerment so
that
there is strategic input from the perspective of poor and working
people.
What we want to pass as economic empowerment is essentially
the
accommodation of the elite. It's about changing the characters in the
existing system and leaving intact the entire system itself, a system that
reproduces inequality in our country and generates
nothing.
Vincent Kahiya