http://www.thezimbabweindependent.com/
Thursday, 19 February 2009 21:24
A
FIERCE battle for control of the financial levers of government is
looming
between new Finance minister Tendai Biti (pictured) and Reserve Bank
governor Gideon Gono amid indications the two fiscal and monetary
authorities are on a collision course.
The fight between Biti
and Gono reflects the broader ongoing political
struggle for control between
President Robert Mugabe and Prime Minister
Morgan Tsvangirai which might be
played out in several other key government
institutions.
Informed sources said Biti and Gono were already fighting a low
intensity
war, just a week after they started working together.
The two have
had clashes before, with Biti describing Gono as an
"Al-Qaeda"-like official
deserving to be put before a firing squad for his
activities as central bank
governor.
Sources said Tsvangirai and Biti were pushing for the
removal of Gono.
"The Prime Minister and Finance minister want Gono
out," a source
said.
"They have not yet come out in the open
and directly said they want
him gone since joining the new government but
they are making concerted
efforts to push him out."
Tsvangirai
and Biti have said the Gono issue was being handled by the
government
leaders.
Biti told the Zimbabwe Independent this week the issue was
under
discussion.
"It's being negotiated, that's all I can
say," Biti said.
Sources said Gono has been maintaining a low
profile amidst the
gathering political storm. Mugabe is expected to come to
Gono's defence.
A source said Gono yesterday, echoing Kipling, told
a close advisor
that: "When everyone is losing their heads, you must keep
calm."
In the meantime, Biti has been taking the fight to
Gono.
This week alone, Biti took several policy measures which
reversed what
Gono had been doing, creating a potentially volatile
situation.
Biti changed or threw out Gono's initiatives on a number
of fronts as
he manoeuvred his way to take charge. He has also said the
central bank
needs reform.
"The Reserve Bank has totally
discredited itself," he told Reuters
last weekend.
"We must
accept that the Reserve Bank is at the core of economic
decay."
First, Biti changed the voucher payment scheme for
civil servants
which was initiated by Gono, without telling him. He said it
was necessary
for him to "review and modify" the scheme.
"With immediate effect, all vouchers issued to civil servants as
payment of
allowances will be redeemable into cash at designated banks,"
Biti announced
on Wednesday.
"With effect from March, payment of allowances to
civil servants will
be made directly into their respective foreign currency
accounts and
therefore the voucher scheme will cease
forthwith."
The sources said these changes prompted an
immediate reaction by Gono
yesterday who wrote to Biti telling him that what
he had done had the
potential of creating an "acute foreign currency crisis"
and chaos in banks.
Government have a deal of US$1 billion dollars
of outstanding
emergency payment.
They said Gono indicated
that it would be difficult for government to
meet the payments because the
fiscus was bankrupt and the Zimbabwe Revenue
Authority (Zimra) had not yet
collected enough income.
Zimra appears to have so far collected at most
US$2 million. At least
US$30 million is needed to pay a complement of 250
000 civil servants.
However, government had only secured US$5
million to pay the public
service in cash through the CBZ. The other
outstanding US$25 million was
going to be paid as vouchers redeemable at
specific companies and shops
selling basic commodities, pending the
collection of enough revenue by
Zimra.
Biti threw out this
scheme and introduced cash payments through banks.
It is not clear where he
got the money from as he refused to reveal the
source. Gono, who is not
privy to the new minister's source of the funds, is
said to be worried about
the situation.
The new minister also directed banks to open
foreign currency accounts
for civil servants, addressed the issue of
pensions, the Zimbabwe Stock
Exchange (ZSE), alternative methods of payment,
inflation data collection
and keeping of corporate accounting
records.
Biti visited the ZSE Thursday as part of his mission
to review
policies or reverse some of Gono's initiatives.
Besides,
Biti this week set aside Gono's licensing system for traders
to sell in
foreign currency, describing it as "unnecessary and costly".
The
minister is also going to revise the budget and fiscal policy in
which Gono
had a major input.
He has also said he will introduce reforms at
the central bank in a
move which will see him changing Gono's administrative
policies.
To further illustrate the undercurrent of hostility
between the two,
Gono has been omitted from Tsvangirai's delegation that is
going to South
Africa today to look for money to finance government
operations and economic
recovery.
Biti and Foreign minister
Simbarashe Mumbengegwi will be part of the
team.
Efforts to
get comment from Gono Thursday were unsuccessful.
His office said
he was in a board meeting when contacted for comment
and indicated that in
any case he had a "new approach" of "not commenting on
such
issues".
Gono is said to have met Mugabe Thursday after his
board meeting to
deal with the situation threatening to explode into a major
crisis.
The sources said this week's developments showed a storm
was brewing
in the corridors of power over Gono's future.
They
said the issue could spill into cabinet meetings and further
divide the
government.
Mugabe is expected to mount serious resistance to keep
Gono.
This is seen as part of the tug-of-war between Mugabe and
Tsvangirai
to control the inclusive government.
BY DUMISANI
MULEYA
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009 21:24
HIGH Court judge Yunus Omerjee on Thursday granted bail to four of the
seven
Movement for Democratic Change activists who are accused of banditry,
insurgency and terrorism.
The judge granted bail to Zacharia
Nkomo, Regis Mujeyi, Garutsa
Mapfumo and Chinoto Zulu on condition that the
four report twice daily to
their respective nearest police
stations.
They were ordered to pay $1 000 (revalued) to the clerk
of court and
to reside at given addresses until the finalisation of the
case.
They were also barred from applying for any travel documents
and told
not to interfere with state witnesses and
investigations.
However, the state has invoked Section 121 of the
Criminal Procedure
and Evidence Act to oppose the bail which was granted to
the four MDC
activists.
According to Section 121, the order to
grant bail to the accused will
be suspended and the accused will remain in
custody until the case is
finalised.
The High Court ruled the
other three, Kisimusi Dhlamini, Andrison
Manyere and Gandhi Mudzingwa, were
not fit for bail.
The state represented by Florence Ziyambi argued
the accused were
facing serious charges. She said if convicted they could be
sentenced to
life in prison and were therefore likely to abscond if granted
bail.
Ziyambi said Mudzingwa and others could not be granted
bail because
the state was relying on evidence from Mudzingwa who is the
former personal
assistant to the Prime Minister.
In his ruling
on the bail application by Nkomo, Mujeyi, Mapfumo and
Zulu, Justice Omerjee
said the state's case was not supported by any
evidence.
"The state is relying on untraceable and unreliable witnesses and
furthermore two of the witnesses are state employees." said
Omerjee.
Gandhi Mudzingwa and six others are accused of bombing
police stations
in Harare last year.
This is despite the fact
that Police Commissioner-General Augustine
Chihuri at the time said it was
an inside job.
Chihuri was quoted in the press as saying: "We are
convinced that as
an organisation we might not come out clean on the bombing
issue."
Meanwhile police who allegedly tortured Gandhi Mudzingwa
and six
others have denied the allegations.
According to the
affidavits submitted to the court, the police said
when they interviewed the
accused no one complained of harassment save for
Kisimusi Dhlamini who
complained of general body illness.
Inspector Catherine Rukara said
when she saw Dhlamini, he had no
visible injuries neither did he complain of
any assault.
Meanwhile former Chimanimani legislator Roy
Bennett's bail application
will be heard Friday.
BY TINASHE
FARAWO
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009 21:21
NEWLY-APPOINTED Media, Information and Publicity deputy minister
Jameson
Timba (MDC-T) has promised to restore media freedom in Zimbabwe with
the
immediate return of closed publications and the freeing of
airwaves.
"The Global Political Agreement (GPA) is unambiguous as
to what should
happen to banned newspapers and radio stations as well as
those who intend
to register new media houses," Timba said.
"Article 19 of the GPA directs that government facilitates the
immediate
registration and processing of applications of media houses under
Aippa and
the Broadcasting Services Act."
Newspapers closed include the Daily
News, the Daily News on Sunday and
the Tribune for allegedly contravening
various provisions of the Access to
Information and Protection of Privacy
Act (Aippa).
He said the timeline given by the agreement with respect
to the
processing of applications in both the electronic and print media was
immediate.
"I want to implement just that," Timba
said.
"Our work has been cut out for us in terms of Article 19 of
the GPA
and the Prime Minster (Morgan Tsvangirai)'s vision statement as
outlined at
his inauguration."
He said his ministry's mandate
is to embark on a comprehensive media
reform that focuses on creating an
open media environment.
Timba said media laws should be revised to
promote democracy through
freedom of expression and the press.
"We must create an open and vibrant media industry that can
accommodate the
hundreds of journalists being churned out by our
polytechnics and
universities," he said.
Timba also promised to look into the issue
of banned international
news organisations such as the BBC and
CNN.
BY KUDZAI KUWAZA
http://www.thezimbabweindependent.com/
Thursday, 19 February
2009 21:14
THE swearing in of five ministers of state and 19 deputy
ministers
yesterday by President Robert Mugabe has bloated the inclusive
government
and will burden the country's economy.
The
government now has 71 ministers, deputy ministers and governors.
There are now 41 ministers, 20 deputy ministers and 10
governors.
The cabinet was appointed at a time when the country
is faced with
numerous problems, including collapsed health and educational
sectors and a
cholera epidemic that has left nearly 3 700 people dead and
about 79 000
infected by the waterborne disease.
Official
vehicles, residences, staff and offices as well as the huge
wage bill to
accommodate this arrangement will gobble up a large chunk of
scarce foreign
currency that would have gone a long way in addressing some
of the problems
afflicting the country.
Deputy ministers and ministers of state
- who were not included in the
Global Political Agreement signed last
September - were sworn in yesterday
by President Mugabe at State
House.
The ministers of state are John Nkomo (Zanu PF), Sekai
Holland (MDC-T)
and Gibson Sibanda (MDC), Minister of State in
Vice-President Joseph Msika's
office Flora Buka and Minister of State in
Vice-President Joice Mujuru's
office Sylvester Nguni.
The
deputy ministers sworn in from Zanu PF were Douglas Mombeshora
(Health and
Child Welfare), Tracy Mutinhiri (Labour and Social Welfare),
Lazarus Dokora
(Education, Sport, Arts and Culture), and Samuel Undenge
(Economic Planning
and Development).
Also from Zanu PF were Hubert Nyanhongo
(Energy and Power
Development), Walter Chidhakwa (State Enterprises and
Parastatals), Michael
Bimha (Industry and Commerce), Reuben Marumahoko
(Regional Integration and
International Cooperation), Aguy Georgias (Public
Works) and Andrew Langa
(Public Service).
Deputy ministers who
took the oath of office from the MDC-T were Cecil
Zvidzai (Local Government,
Urban and Rural Development), Tichaona Mudzingwa
(Transport and
Infrastructural Development), Murisi Zwizwai (Mines and
Mining Development),
Jameson Timba (Media, Information and Publicity),
Evelyn Masaiti (Women's
Affairs, Gender and Community Development), Jessie
Majome (Justice and Legal
Affairs), and Tamsanqa Manhlangu (Youth
Development, Indigenisation and
Empowerment).
Roy Bennett, who was due to be sworn in as MDC-T
Agriculture deputy
minister, did not turn up as he is in remand prison on
terrorism charges.
MDC deputy ministers who took the oath of
office are Lutho Tapela
(Higher and Tertiary education) and Moses Mzila
Ndlovu (Foreign Affairs).
Giles Mutsekwa also took his oath of
office as Home Affairs minister
having been out of the country when other
ministers were sworn in last week.
The bloated government
overturns the agreed allocation of ministers
and deputy ministers in the
Global Political Agreement as the two main
parties feather their political
nests.
It was supposed to be 15 ministers and eight deputy
ministers for Zanu
PF, 13 ministers and six deputy ministers for the MDC-T
formation and three
ministers and one deputy minister for
MDC.
According to political analysts, the bloated government is
a damning
indictment on the MDC-T formation, which based its 2008 elections
campaign
on the promise of a trimmed cabinet.
The big
government, the analysts added, was likely to be of concern to
the
international community, making it more difficult for the government to
get
crucial funding to help kickstart the economy.
Finance minister
Tendai Biti would have the unenviable task of
revising the budget to
accommodate the swollen cabinet.
Economist John Robertson yesterday
said the size of government was
larger than cabinets in some European
countries which were much bigger than
Zimbabwe.
"There are
more ministers in this country than there are for bigger
countries like
Britain, France and Germany."
Robertson said because of the
huge size of the cabinet, the process to
make and implement decisions would
be ponderous, as it would take a longer
period of time to reach
consensus.
He said he was dismayed that at a time the
government was expected to
have a smaller cabinet, there was an added burden
on the taxpayer, derailing
efforts to turnaround the country's
economy.
BY KUDZAI KUWAZA
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009
21:11
ZIMBABWEAN diplomats long used to leading comfortable lifestyles
in
foreign lands are currently living like paupers according to Ministry of
Foreign Affairs officials who spoke to the Zimbabwe
Independent.
The current economic collapse in Zimbabwe that has
seen foreign
currency receipts disappear has meant that the government has
not been able
to pay its diplomats and locally recruited staff on time.
Zimbabwe has 38
diplomatic missions plus three consulates across the world,
with the biggest
missions being New York and Geneva due to United Nations
work.
Foreign currency applications lodged with the Reserve Bank of
Zimbabwe
have not been adequately met, negatively affecting morale and the
operations
of the embassies.
Ambassadors are paid between US$11
000 to US$13 000 a month depending
on political seniority.
In February the New York mission received US$100 000 when its arrears
and
other monthly obligations totalled US$1 million.
Sources said
Zimbabwe's diplomats and Foreign Affairs staff posted at
these missions had
not been paid for the last five to seven months.
This meant that
they have been unable to meet their obligations such
as paying for rented
accommodation, heating, medication and school fees.
Locally
recruited staff is owed salary arrears of between three and
five months
including bonuses.
A diplomat who spoke on condition of
anonymity said "because of the
humanitarian situation at home we are no
longer a priority".
Failure to pay rentals and to meet other
basic necessities is reported
to have caused emotional stress for many
diplomats.
A diplomat (name supplied) based in Vienna reportedly
succumbed to
depression in February after an eviction notice.
She was buried in Harare in February after friends and relatives
chipped in
to pay for transporting her body. Similar stories abound
including diplomats
who are surviving on foreign currency sent by the
extended families back in
Zimbabwe and some on handouts from friends.
Many are deep in debt
after resorting to overdrafts for their everyday
needs.
Another European-based Zimbabwean diplomat said some officers had
resigned
as a result of these terrible conditions because "people fear
having bad
names back home and some still hold out for cushy jobs in
international
organisations such at the UN."
In Sweden officers evicted from
their homes after failing to pay rent
due to the non-payment of salaries are
staying at the ambassador's
residence.
Sources said in
Australia a senior officer was also staying at the
embassy.
In
India, Iran and Austria landlords for the chancelleries and
residences have
approached their ministries of foreign affairs to lodge
complaints about the
deviancy of Zimbabwean missions.
In certain countries where it
is legal, spouses had resorted to
seeking employment to support their
families. Sources said some desperate
diplomats had resorted to moonlighting
to survive. Another diplomat who
refused to be identified said "under these
difficulties we still have to
defend our country in international forums and
in countries where we have
been posted".
All diplomats
interviewed said they pinned their hopes for a change in
their fortunes on
the Global Political Agreement that produced the
government of national
unity which had its first cabinet meeting in Harare
this week.
The forthcoming tobacco selling season was another reason for hope as
improved sales would most likely result in certain disbursements made to
cover outstanding diplomatic obligations.
There has been
pressure in the Ministry of Foreign Affairs to reduce
the number of
embassies as a survival strategy but this had been turned down
by President
Robert Mugabe who sources said argued this would amount to a
humiliation.
However, other diplomats said that closing
down embassies at this
juncture would be expensive given the huge
outstanding arrears to staff,
rentals and other services. - Staff
Writer.
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009
21:06
PRESIDENT Robert Mugabe and MDC-T leader Morgan Tsvangirai are
still
haggling over the allocation of provincial governors' posts as it
emerged
that Zanu PF is now demanding half of the 10 positions.
Zanu PF and the two MDC formations had three weeks ago agreed on a
formula
to allocate the posts under the inclusive government formed last
week.
The three parties had agreed to allocate the posts
using the outcome
of the March 29 parliamentary elections.
A party with more seats in any given province would allocate a
governor in
that province and under this formula the MDC-T would have five
governors,
Zanu PF four and the other MDC led by Arthur Mutambara one.
In
addition, Zanu PF was entitled to appoint a minister of state.
Under this deal, the MDC-T would appoint governors in Harare,
Bulawayo,
Matabeleland North, Masvingo and Manicaland while Mugabe will have
the three
Mashonaland provinces and Midlands. The other MDC would appoint a
governor
in Matabeleland South.
But sources this week said Zanu PF was
now demanding five governors.
Mugabe, the sources said, wanted
to appoint a governor in Manicaland
where Zanu PF lost dismally in the
parliamentary polls.
Mugabe, Tsvangirai and Mutambara this week
failed to reach an
agreement on the governors although the three parties
agreed that resident
ministers should take office soon.
MDC
spokesperson and also Minister of Information Technology in the
inclusive
government, Nelson Chamisa, confirmed this week that the issue of
governors
was still unresolved.
"The issue of governors is still to be
resolved. The principals are
set to meet and discuss the allocations of all
outstanding issues and the
issue of the governors is one of them," Chamisa
said.
He however said the parties were agreed on the time frame
the
outstanding issues should be resolved.
"The implementation has
to be done immediately and that is what Sadc
said," Chamisa
added.
Meanwhile, there is serious jostling for governors'
positions within
the MDC-T.
Sources in the party said there
was lobbying and canvassing by members
eyeing the seats although the MDC-T
has reportedly shortlisted potential
candidates.
Former
party women's assembly chairperson Lucia Matibenga is
reportedly going to be
the governor of Masvingo, Hwange East MP Tose Wesley
Sansole is earmarked
for Matabeleland North, and Zimbabwe Congress of Trade
Unions secretary
general Wellington Chibebe would get Harare.
In Bulawayo, Nketa
MP Seiso Moyo is tipped to be the new governor.
Chamisa could
not be drawn into discussing the reportedly MDC-T
governors'
list.
BY LOUGHTY DUBE
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009 20:48
A LOT of questions are being asked about why MDC-T leader Morgan
Tsvangirai
selected a candidate from a rival formation for a cabinet post,
and why he
later changed his mind.
Zimbabwe Independent bureau chief, Loughty
Dube (LD) this week
interviewed the candidate, Nkayi West Member of
Parliament Abednico Bhebhe
(AB) of the MDC led by Arthur Mutambara. Excerpts
below.
LD: Honourable Bhebhe, how do you feel after being dropped
from the
MDC-T ministerial list at the last minute?
AB: I
feel vindicated because there are Zimbabweans who have been
saying they
don't trust the Mutambara faction arguing that it is not working
for
democracy.
This decision shows that the Mutambara leadership is not
democratic,
it is a leadership that lost elections and came back through the
back door
on the strength of the 16 MPs who won elections on March 29 2008.
I feel
great that they have been exposed for what they are through this
incident.
LD: Was the MDC leadership consulted before your name
was put up for
nomination as cabinet minister by the MDC-T
faction?
AB: The party's leader was consulted on the
matter.
Firstly Morgan Tsvangirai contacted me with the information
and I
immediately called Mutambara who thanked me and said there was no
problem.
He indicated that he would talk to Tsvangirai about the
matter and he
(Mutambara) later told me that he had spoken to
Tsvangirai.
LD: So in your own words there were consultations
between the two MDC
leaders?
AB: Absolutely and actually
Mutambara came back to me and indicated
that they had agreed on a strategy
they formulated with Tsvangirai where
they would send all the names of their
cabinet choices to President Mugabe.
LD: Why was that supposed
to be so?
AB: Mutambara said this was done so that if the
party's management
committee raised the issue of my appointment it would be
explained to them
that the decision was endorsed by all three
principals.
LD: Why then do you think Mutambara changed his
mind and accused
Tsvangirai of working against the spirit of the Global
Political Agreement
when he nominated you for a cabinet post after he had
initially agreed?
AB: After the announcement of the cabinet
list by MDC-T, Mutambara
told me he was under pressure from three colleagues
who wanted me dropped
from the list and he named the three as Priscilla
Misihairabwi-Mushonga,
Welshman Ncube and Fletcher Dulini
Ncube.
Mutambara even expressed shock that some of the people
complaining had
not spoken to him in the last seven months.
Mutambara said to me he was angry that Tsvangirai had breached their
agreement to let President Mugabe announce the combined cabinet list by
announcing his own cabinet list.
LD: When was this
discussed and what was the outcome of the
discussion?
AB:
It was discussed on Wednesday afternoon and Mutambara later said
he would
discuss my issue further with the three principals during their
meeting
later in the day. However, on Thursday Tsvangirai called and
informed me
that the appointment had been cancelled as Mutambara, with the
support of
President Mugabe, said it was not proper for Tsvangirai to
appoint
me.
I then called Mutambara on his mobile phone in the presence
of
Tsvangirai to discuss the developments and he cut the phone on
me.
I then drove to his house but he refused to open the door for
me and
we spoke through a burglar bar door.
However, as I
was trying to reason with him he ordered two uniformed
policemen who were
guarding the house to throw me out and that was the
greatest insult for
me.
If it was not for me and my 15 colleagues who won the 15 seats
in
Matabeleland, Mutambara would not be (deputy) Prime Minister lest he
forgets
that.
The same applies to those that assisted to have
me dropped; they would
not be ministers today.
LD: Your
party says it was against the spirit of the GPA for
Tsvangirai to nominate
you into his cabinet?
AB: That is totally untrue and a fallacy
believed by those that have a
hidden agenda.
The GPA is a
document built on the principles of an all-inclusive
government.
This is not a one party government; it is an
all-inclusive government.
So anyone, including people not belonging
to any of the three
political parties, can be appointed into the
government.
The GPA says there shall be 31 ministers with 15
nominated by Zanu PF,
13 nominated by MDC-T and three nominated by
MDC.
It says nothing about those ministers coming from any
party.
It says nominated by and not from.
So there is
no spirit against the GPA to talk of.
LD: Were you prepared to
accept the cabinet post as Minister of Water
Resources and Development if
your party had approved your nomination?
AB: Definitely, I was
prepared to accept the post because I was
listening to calls by people on
the ground.
They are saying if it was not for the divisions we
could have won the
elections as an opposition in March and that is the
reason I gladly accepted
the offer.
LD: Your party had
threatened to dismiss you if you accepted the
appointment by Tsvangirai.What
are your comments?
AB: If you talk of MDC as a party, it has
structures and a
constitution.
Firstly before anyone fires me
from the party they have to convince my
district, citing constitutional
provisions which I breached and the process
has to be taken to the
provincial level before it comes to the parliamentary
caucus.
After that happens the national council has to assess the
recommendations
from all these structures before a person can be fired from
the
party.
For anyone to dream from his office that he can fire me
is void unless
the party is a private company where a chief executive
officer can fire
people just like that.
After all why am I
being threatened with being fired by people who did
not get a mandate from
people to represent them?
LD: What will happen to you if your
party goes ahead and expels you?
Are you going to be an independent or you
will join the MDC-T faction?
AB: The decision to expel me or
not does not lie with individuals but
is an issue involving structures and
it's bigger than individual talk.
Besides there is no reason I can
be fired for joining an all-inclusive
government.
It would mean
that all those that joined the all-inclusive government
should step
down.
It is not the first time that they have threatened to fire me
from the
party.
They have tried twice and twice they have
failed.
LD: People are saying your nomination by Tsvangirai was
to reward you
for backing MDC-T candidate Lovemore Moyo for the speakership
against Paul
Themba Nyathi from your party. Any comment on that
issue?
AB: People are allowed to dream.
First, as
an individual I would not have made Lovemore Moyo to win.
I only
cast one vote and those that suggest that I rallied other MPs
to vote for
Lovemore Moyo are actually defaming the characters of the other
MPs and
suggesting that they do not think for themselves.
Besides the
allegations are just conspiracy theories as the vote in
parliament was
through a secret ballot.
LD: Personally why do you think
Tsvangirai nominated you into his
cabinet?
AB: There are
two reasons I think Tsvangirai nominated me.
First, it is because
of my consistency since the MDC was formed in
fighting for the
democratisation of Zimbabwe.
I have always challenged undemocratic
tendencies from whoever, which
is the reason MDC leaders want me fired
because I will not accept anything
undemocratic.
Second, I
think he looked at the experience I have acquired in
parliament and in
Zimbabwe at large on the governance issues.
I also feel Tsvangirai
in appointing me was extending a hand of
reconciliation which we have been
trying to bring to the feuding factions.
He was simply upholding the
principle of the all-inclusive government.
He was demonstrating
that as opposition we have an advantage if we
work
together.
When a runoff was announced our party made a decision
that we would
support the candidature of Tsvangirai and that decision has
not been
rescinded and Tsvangirai in appointing me was reciprocating the
kind gesture
from our party.
LD: You have been on a
collision course with your party leadership for
a long
time?
AB: Thank you for asking that question.
It
all started in 2006 at congress when names of management committee
members
were forwarded to provinces so that they would be endorsed at
congress.
I was one of the people who led the disapprovals
since the practice
was undemocratic.
At the same congress my
colleagues had forwarded my name to contest
the position of
treasurer-general.
However, I was persuaded by Vice-President
Gibson Sibanda, whom I
respect very much, to withdraw. I therefore humbly
withdrew.
The names that were forwarded to the provinces were
endorsed without a
vote at the congress and that process was undemocratic
and I voiced my
discontent.
I have always been threatened
because I am vocal at National Council
meetings and twice there have been
attempts to fire me.
LD: (Edwin) Mushoriwa (MDC spokesperson)
on Monday this week claimed
you lied that Mutambara gave you the go-ahead to
accept the MDC-T cabinet
nomination.
What is your comment on
that?
AB: Mushoriwa is just a mouthpiece of those that blocked
me from
participating in a democratic all-inclusive government.
So he is bound to play the master's pipe. After all he is part of a
group
rejected by the people on March 29 2008.
LD: So you spoke to
Mutambara on the matter?
AB: Yes, I spoke to him and it would
be unfortunate if he tries to
deny that.
LD: Finally, are
you bitter at being denied a chance to take part in
the all-inclusive
government?
AB: I am not bitter at all for the following
reasons: first, whoever
thinks he is trying to fix me should forget it
because this is an
encouraging development in my political life which gives
me the zeal to work
harder to defeat the enemies of democracy.
Democracy is measured by winning elections and not being involved in
government through the backdoor.
I am also happy that the
decision by Mutambara has made Zimbabweans
see what kind of leaders we
have.
They are so blind with vindictiveness.
This is a
party that won all its representation in parliament from
Matabeleland but
has the audacity to block one of the Ndebele leaders to be
involved in the
all-inclusive government.
http://www.thezimbabweindependent.com/
Thursday, 19 February
2009 19:22
THE inclusive government formed last week faces a daunting
task to
stabilise the economic situation, revive social services and
generally
improve the living standards of the majority of people wallowing
in poverty.
The Zimbabwe Independent looks at the challenges some
ministries have
to surmount to bring about stability.
Finance
Finance minister Tendai Biti has a Herculean task to
restore
confidence in the country's flagging economy.
His
ministry's major task will be to reengage bilateral and
multilateral
financiers like the African Development Bank, the International
Monetary
Fund (IMF) and the World Bank (WB) to provide balance of payments
support
and lines of credit to kick-start the comatose economy.
With
arrears close to US$500 million owed to the IMF and the WB, Biti
and
technocrats in his ministry have to convince the world of the country's
creditworthiness.
The ministry should come up with a robust
repayment plan for what it
owes the international community.
The
Finance ministry should restore confidence in the financial sector
that is
currently in limbo after the introduction of multi-currencying.
Another immediate task for Biti is local resource mobilisation through
the
Zimbabwe Stock Exchange (ZSE) which resumed trading yesterday.
Trading on the bourse was suspended last November amid allegations by
the
Reserve Bank of insider deals, costing government billions of dollars in
lost revenue from taxes.
Stockbrokers said Thursday there were
still issues to be sorted out
relating to multi-currency trading,
revaluation of
Zimbabwe-dollar-denominated stocks and synchronisation of
foreign currency
accounts.
Biti and RBZ governor Gideon
Gono also have to resolve their
differences over the financing of
quasi-fiscal activities which have been
blamed for fuelling
inflation.
The Finance ministry also has to come up with a
revised national
Budget to finance new ministries created by the inclusive
government and
channel more money to social services to protect the
poor.
Biti has to raise funds to deal with the current humanitarian
crisis -
the cholera outbreak and feeding over five million people facing
starvation.
Economic Development
Declining
performance in exports and foreign direct investments have
crippled the
country's bartered economy in the past 10 years.
The economy has
become import-driven to the detriment of local
industry. Elton Mangoma, the
new Economic Development minister, like Biti,
has the task of convincing
international investors and organisations to
invest their money in Zimbabwe
if real economic development is to take
place.
The shift to
a market-based economy would be another challenge Mangoma
and his ministry
face. For far too long, the government subsidised numerous
goods and
services to the detriment of economic development.
But such
policies are now unsustainable in an environment where
foreign currency is
scarce.
Matching the country's competitiveness in the wake of
regional trading
zones calls for pragmatic steps from Mangoma, a chartered
accountant by
profession.
Foreign Affairs
Foreign Affairs minister Simbarashe Mumbengegwi must lead a paradigm
shift
in government's approach to foreign relations.
He has to formulate
a new foreign policy aimed at cementing and
re-establishing relations in the
region and the international community.
The last Zanu PF
administration's policy was skewed in favour of Asia
and the Arab
world.
The United States, Britain and its European Union allies
were
perceived as enemies seeking to topple President Robert
Mugabe.
The hardline foreign policy that treats everything
"Western" with
suspicion could be a stumbling block to reengagement and
ending the country's
near pariah status.
Mumbengegwi is not
well-liked by foreign diplomats based in Harare
because of what is seen as
crude posturing in line with ruling-party
thinking.
His
challenge is to adopt a middle-of-the-road policy that will see
Zimbabwe
regaining its membership in multilateral organisations like the
Commonwealth
and reengage the EU, the US and Britain, among others, and at
the same time
uphold the country's territorial integrity.
Mugabe last week
insisted that Zimbabwe has to be treated as an "equal
partner" with other
nations.
The Foreign ministry should use its 38 missions and
three consulates
across the world to improve the image of the country and
sell it as a good
destination for tourism and investment.
But
that has to be matched with improved governance at home.
Another major challenge for Mumbengegwi is to convince the US and the
West
to lift sanctions imposed on Zimbabwe, which have for the past seven
years
been an albatross on the economy. But he is not the best person to do
that.
The Foreign minister would need the support of the
entire government
and beyond to achieve this goal as outlined in the
power-sharing deal signed
last September.
Information and
Publicity
Like Mumbengegwi, Information and Publicity minister
Webster Shamu's
immediate challenge would be to improve the country's
international image
and he can only do that by revoking the ban on
international media
organisations and individual journalists who have been
expelled over the
years.
Shamu has to reopen newspapers
closed by the Media and Information
Commission (MIC) such as the Daily News
and The Tribune to show the world
that Zimbabwe is on the path to full
democracy where media diversity is a
necessity.
The MIC has to
be reformed or better still junked while laws like the
Access to Information
and Protection of Privacy Act need to be repealed.
Aippa has done
nothing to provide access to information.
Shamu's challenge is
to initiate democratic media laws that guarantee
the safety of both media
practitioners and consumers of news.
He must strive for equal
access to the public media by all political
players, religious groups and
civil society, among others.
The public media - ZBC and
Zimpapers - should be accountable to the
people and not government as is the
case today.
Health
With the cholera outbreak that
has so far killed over 3 700 people and
infected 73 000 since last August,
critical shortages of drugs at government
health institutions, staff and
equipment, new Health minister Henry
Madzorera's job will not be a stroll in
the park.
The ministry's former head David Parirenyatwa
lamented this week that
underfunding affected health delivery in the country
and Madzorera should
fight hard to secure the necessary
funding.
There is need for huge sums of foreign currency,
currently in short
supply, to re-equip public hospitals and clinics, buy
drugs and recruit and
retain health workers, some of whom left the country
for greener pastures.
Increasing the provision of
antiretroviral drugs for people living
with HIV and Aids, dealing
effectively with tuberculosis and other
infectious diseases would be some of
the pertinent issues Madzorera, a
Kwekwe-based physician, would have to
quickly address.
Agriculture
The appointment of
Joseph Made as Agriculture minister came as a
surprise to many given his
dismal performance when he was in charge of that
portfolio between 2002 and
surprise to many given his dismal performance
when he was in charge of that
portfolio between 2002 and 2005.
Most Zimbabweans remember that
Made, after a helicopter ride declared
that the country would have a bumper
harvest.
The year turned out to be the worst on
record.
The expectation however is that Made is now a changed
man.
His greatest challenge is to ensure the revival of the
agricultural
sector through the timely availability of inputs and that
farmers are paid
well for their produce.
Dilapidated irrigation
facilities should be rehabilitated and used to
boost agricultural
productivity to guarantee the nation's food security.
Made's other
challenge and that of Lands and Resettlement minister
Herbert Murerwa is to
ensure property rights on farms are respected. New
farm invasions must be
stopped.
Industry and Commerce
Minister of
Industry and Commerce Welshman Ncube, like Biti, also has
a mammoth task to
spur the revival of the economy.
Ncube's immediate task is to
ensure the coming back into stream of the
manufacturing sector to enhance
production.
This would translate into increased exports and foreign
currency
inflows desperately needed to revive the economy.
Companies that were shutdown must be revived by business-friendly
policies.
According to a government recovery plan drawn up
last year, the
inclusive administration would need US$900 million in the
next 12 months to
boost depressed capacity utilisation in the manufacturing
sector to 80% from
the current level of 15%. Ncube, Mangoma and Biti must
come up with policies
that attract investors to pour in sunstantial sums of
hard currency to
revive the local industry.
State Enterprises
and Parastatals
State enterprises and parastatals are key to
the economic revival of
Zimbabwe and minister Joel Gabuzza has a plateful of
challenges in reforming
the institutions.
Since
Independence most parastatals and enterprises have been feeding
from the
fiscus to the detriment of the economy.
These institutions have
been making huge losses because most of them
were never run on business
lines and used to charge sub-economic rate prices
for goods and
services.
State enterprises like Zesa and Zinwa have failed to
deliver a
continuous supply of electricity and water because of incompetence
on the
part of their managers and for charging sub-economic
rates.
Some institutions have been militarised over the years
as Mugabe and
Zanu PF consolidated power and it's up to Gabuzza to undo
that.
Gabuzza's challenge is to come up with a viable
commercialisation and
privatisation policy for some of the parastatals and
enterprises, but should
spare institutions such as Zesa and Zinwa, which
cater for the majority of
people.
Privatisation of water and
electricity creates the risk of denying the
majority of Zimbabweans access
to those services.
Local Government, Urban and Rural
Development
"Housing for all" is such a tired cliche.
But this slogan has not lost its appeal amongst most in Zimbabwe.
After numerous years of unfulfilled promises, many have died whilst
still on
the government housing waiting list awaiting affordable residential
stands.
High prices charged by private property developers have
relegated many
urban dwellers to perpetual tenants rather than
homeowners.
For the rural folk, good water and sanitation
facilities continue to
elude them despite humanitarian assistance from donor
agencies.
The continued spread of the cholera epidemic in the
countryside is a
clear testimony of the dire need for water and reticulation
services.
Ignatius Chombo should be cognisant of the task
ahead.
The deplorable state of the urban and rural road network has
become a
perennial problem. Like any other ministry, this ministry has had
little
funding for its development projects against the background of
sub-economic
tariffs charged by local authorities.
The
minister should stop his trademark interference in the affairs of
local
authorities, especially those run by the MDC, using legal and
extra-judicial
means. There should be an end to the appointment of
commissions to run local
authorities. They have achieved nothing except to
consume public
funds.
Energy
Elias Mudzuri, the new Minister of
Energy equally has an important
task in resuscitating local industry. For
years commercial farmers have
blamed frequent power outages for the
declining agricultural productivity
and down stream industries.
Refurbishing the five thermal power stations in the country and
minimising
breakdown at Kariba should be the top priority for the ministry.
Moreso increasing power generation for domestic purposes is critical
for
economic revival. In the longer term, Mudzuri should consider investment
in
renewable energy sources to boost energy supplies.
The constant
supply of fuel is another critical component Mudzuri has
to ensure. With
world oil prices currently favourable, fuel supplies for
agriculture,
manufacturing and mining sectors should be sufficient enough to
support
production.
Education
The Ministry of Education headed
by David Coltart and the Ministry of
Higher education led by Stan Mudenge
have somewhat similar challenges ahead
of them.
Prolonged job
actions from staff demanding better remuneration is just
a microcosm of the
total collapse of the country's education system.
The revision
of tuition fees at tertiary schools is also a major
hurdle that Coltart and
Mudenge will face amid outcries from parents and
students demanding a slash
in the recently announced fees.
Zimsec, the country's
examination board currently dogged by
administrative constraints, requires
urgent attention in restoring its lost
credibility and integrity. With
dollarisation in place parents could be
forced to register with foreign
examination boards.
Armed forces ministries
The
armed forces include the army, airforce, police and the Central
Intelligence
Organisation which fall under the ministries of Defence; Home
Affairs and
National Security.
The armed forces have -- since the late
1990s -- been used by the
state as instruments of oppression. They have been
deployed to contain
democratic change.
Serving and retired
members of the armed forces have benefited
immensely from state
patronage.
As a result most of them have openly and actively
participated in
election campaigns in support of Mugabe and Zanu PF and also
declared that
they will not support any electoral outcome that would result
in the loss of
political power of Zanu PF.
The armed forces
stand accused of fomenting pre and post-electoral
violence against
opposition officials.
Given this scenario, the three ministries in
charge of the armed
forces have a challenge to ensure that the forces should
not continue to be
used to foster an undemocratic environment and to subvert
electoral
processes.
The ministers in charge, Giles
Mutsekwa and Kembo Mohadi (Home
Affairs), Emmerson Mnangagwa (Defence), and
Sydney Sekeremayi (National
Security) have a crucial task to transform the
armed forces into
professional bodies that do not participate in party
politics and the
administration of electoral processes.
The
armed forces should also be unequivocally committed to loyally
serving any
government or president who is constitutionally elected by the
people.
The Home Affairs ministry's major challenge is to
improve the police's
image. The general public views the police force as a
partisan body, which
dances to the tune of Zanu PF.
Mutsekwa and Mohadi should ensure that processing of important
documents for
citizens such as birth certificates, national identity cards
and passports
should be done within reasonable time and at affordable
prices.
Mnangagwa has to re-equip the army and improve
conditions of services
and salaries for soldiers, some of whom went on the
rampage last December
because of poor remuneration in
Harare.
The Ministry of State for National Security should turn
the CIO into
an outfit whose pre-occupation must be the enhancement of
national
integrity.
Forced disappearances and torture,
which have been the hallmark of the
CIO since 1980, should be brought to an
end.
BY CONSTANTINE CHIMAKURE AND BERNARD MPOFU
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009 17:37
PRESIDENT Robert Mugabe last week retained the oldguard in his
inclusive-government cabinet in what political analysts said is a sign that
the party has a leadership-renewal challenge.
The analysts said
it was clear that there was a paucity of the younger
generation of political
leaders in Zanu PF.
Mugabe appointed Emmerson Mnangagwa (Defence),
Didymus Mutasa
(Presidential Affairs), Sydney Sekeramayi (National
Security), Stan Mudenge
(Higher Education), Ignatius Chombo (Local
Government), Kembo Mohadi (Home
Affairs), Nicholas Goche (Transport),
Sithembiso Nyoni (SMEs), Joseph Made
(Agriculture), Simbarashe Mumbengegwi
(Foreign Affairs), Francis Nhema
(Environment) and Patrick Chinamasa
(Justice and Legal Affairs).
Others are Herbert Murerwa
(Lands), Obert Mpofu (Mines), Webster Shamu
(Information) and Walter Mzembi
(Tourism).
Ministers from Zanu PF joined their colleagues from
the Morgan
Tsvangirai and Arthur Mutambara MDC formations in a 35-member
cabinet that
took the oath of office last Friday.
Tsvangirai is the prime minister in the inclusive government with
Mutambara
and Thokozani Khupe deputising him.
The appointment of
ministers who were in the last cabinet dissolved in
February 2008, according
to the analysts, is a serious indictment of Mugabe
who last August said it
was the worst government he had ever had since
Independence in
1980.
"This cabinet that I had was the worst in history,"
Mugabe said last
August. "They look at themselves. They are
unreliable."
Over the years, Mugabe has shuttled ministers like
Mnangagwa, Mutasa,
Sekeramayi, Mudenge, Murerwa and Chombo from one ministry
to another and
also into positions as governors and Speakers of
parliament.
The same ministers have presided over a government
that saw the
spiralling of inflation before partial dollarisation of the
economy last
October, unemployment of over 90%, punitive interest rates,
poor health and
education delivery systems and increasing poverty.
]
Alex Magaisa, a Zimbabwean lawyer based in the UK, said Mugabe's
appointment of the old guard reflected the state of political evolution in
Zanu PF, essentially that the fittest who have survived since Independence
"naturally maintain their position at the top of the
food-chain".
He said Zanu PF lacked a younger generation that
has taken charge of
the party.
"As such, those who have
always been there remain in the positions of
authority," Magaisa pointed
out. "You have to remember also that this is
about trust and
loyalty.
For the first time in more than 20 years, Mugabe is
getting into bed
with two new partners. Looking at it from his own
perspective, he is better
off having trusted lieutenants by his side, as
opposed to having a
completely new team of ministers whose loyalty may be
less than 100%."
The analysts said Mugabe had gone along with
the "old, trusted
comrades" because he trusts them to stand by him, come
rain or shine.
University of Zimbabwe political science
professor John Makumbe agreed
with Magaisa adding that if there was a
leadership crisis in Zanu PF, it was
that as a party it has not allowed
itself sufficient renewal to create a new
and visible generation of
leaders.
"When you look round the party, there are very few, if
any, visible
leaders from the younger generation," Makumbe
said.
"He is probably unsure about the opportunism and voracious
appetite of
the younger members of his party and for that reason he opted to
go for
loyalty and trust which he finds among his comrades from his days in
Mozambique. They understand him and he understands them."
He said because of the unprecedented crisis in the country, Mugabe had
no
choice but to turn for salvation to the "same tired" faces.
"All the people who are critical of Zanu PF must also take
responsibility
for not participating in the party with a view to diluting
the influence of
history on the future of the country," wrote
Zimbabwean-born South African
businessman Mutumwa Mawere.
"The party's worldview has been shaped
by the past and by framing the
current challenge as a colonially generated
one it is not surprising that
the best defenders of the status quo have to
be the very liberation heroes
that were instrumental in liberating the
country.
The country may have 29 years of experience but in respect
of dealing
with the colonial injury, the country has not
moved."
He said the recycling of ministers had to be viewed in
the context of
how Zanu PF had framed the current problems.
"It has refused to accept that part of the challenge may have emanated
from
wrong or bad policies. It has accepted that sanctions are the real
cause of
the crisis and, therefore, why change the team when the team is not
the
problem?" Mawere said.
"The ministers have convinced Mugabe that
they are not the problem but
have been victims of a white
conspiracy."
Analysts said Zimbabwe's politics were not based
on national interests
and, therefore, appointments to cabinet were also not
based on the same
interests.
They said the old guard in Zanu PF
has over the years outflanked the
younger generation by hook and by
crook.
"The cost and benefits of political engagement within Zanu
PF are well
known and when daily you see the costs in terms of political
harassment and
victimisation, no one will be inspired to be involved," an
analyst who asked
for anonymity said.
The analyst also
argued that Mugabe might have recycled the ministers
because of their
experience in cabinet so as to maintain balance.
"Mugabe
believes in the old adage that experience is the best teacher.
He wants to
maintain balance in the cabinet by retaining experienced
ministers to work
with those from the MDC who are not knowledgeable in how a
government is
run," the analyst added.
The Zimbabwe Congress of Trade Unions
(ZCTU) expressed concern over
Mugabe's decision to appoint the old guard
after Mugabe accused the same
ministers of inefficiency and
greediness.
"The question which now begs an answer is this: why did
he allow this
worst cabinet in the history of Zimbabwe to continue ruining
the country by
re-appointing them?" asked ZCTU secretary-general Wellington
Chibebe.
BY CONSTANTINE CHIMAKURE
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009
21:02
ZIMBABWE'S new government is having to take emergency action in
every
state sector to counter years of collapse, Prime Minister Morgan
Tsvangirai
told business leaders Thursday.
"We are in an
emergency situation," Tsvangirai told business leaders.
"This is
fire fighting we are doing. We are talking of emergency
interventions in
various sectors," said Tsvangirai.
Outlining massive skills
flight in government departments, Tsvangirai
said he had already been told
horror stories by cabinet members.
"The ministers have just
been in office for two days," Tsvangirai
said.
"Some of them
are telling me horror stories about the state of their
ministries.
"The Ministry of Public Works is supposed to
have 60 engineers but
they only have two. The Ministry of Mines has 96 posts
but they only have 20
people including those who make tea," he
said.
"How do you effectively discharge your mandate with such
limited
resources?"
Tsvangirai vowed to act on fresh farm
invasions and corruption to
promote investment to the country's tanked
economy.
"Corruption will not be tolerated and those that
practise and promote
corruption will be actively sought out and prosecuted
by this government,"
he said.
"We are concerned at the
upsurge of illegal occupation of farmland,"
he added.
"We are
dealing with that".
Speaking at the same occasion, deputy Prime
Minister Arthur Mutambara
advised industry and commerce to shelve business
plans they made based on
the national budget and monetary policy measures
announced in January and
this month, saying the new government was reviewing
the two policies.
Mutambara said the new government would push
towards freeing the
country's bartered economy from existing government
controls.
These remarks came after then acting Finance Minister
Patrick
Chinamasa presented a budget in January that was followed by the
monetary
policy statement issued by Reserve Bank governor, Gideon Gono,
early this
month.
"Putting it simply, don't base your plans
on what Chinamasa or Gono
said," warned Mutambara.
"They
(national budget and monetary policy) will be reviewed.
There will
be fundamental reviews on those two documents. Just give us
time."
Chinamasa proposed a US$1,9 billion budget that
sought to free the
economy but fell short the expectations of the private
sector.
In his policy statement Gono said traders using foreign
currency would
continue to pay license fees, a measure that has since been
removed by new
Finance minister, Tendai Biti.
Tsvangirai
criticised existing policies set by the Zanu PF-led
government for the sharp
decline in productivity.
"All export sectors," Tsvangirai said, "have
been negatively impacted
by policies pursued in the past that gave birth to
rampant black market
activities, transferring value to fly by night
businesspeople.Controls have
not worked anywhere and they will not work
here."
He said the business community has crucial role to play in
the
stabilization of the economy.
"Prices of goods and
services available in Zimbabwe are often
significantly more than double
those of South Africa," Tsvangirai said.
"Therefore, in light of
the ongoing stimulus and stabilisation
activities, I ask you to also
revaluate your business models to match our
efforts. This is also in your
best interest as part of our stabilisation and
stimulation measures, we will
encourage competition through allowing
industry to price its goods in the
most cost effective and price competitive
and responsible way," he
said.
Tsvangirai said the government had engaged South Africa
with a view to
use the Rand as the standard currency in
Zimbabwe.
"I don't want to pre-empt this, but we are really
engaging the South
Africans to make sure we can discuss (using the Rand) to
provide relief," he
said.
"Our kith and kin in the Diaspora
should be the first point of call as
we spread our influence abroad. They
should be the conduit through which we
increase our exports and channels
which we raise international finance."
Speaking in the wake of
an offer by the British government to resettle
senior citizens struggling in
its former colony, Tsvangirai said Zimbabwe's
tattered international
reputation needed to be mended.
"We have to rebrand the country,"
Tsvangirai said.
"We have been seriously damaged. We want to
see people coming rather
than being evacuated from Zimbabwe." - Staff
Writers/AFP.
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009
20:40
AFTER three months of inaction, the Zimbabwe Stock Exchange
resumed
trade yesterday with only Apex Corporation trading after all the
other
counters found no takers.
There was a big spread between
buyers and sellers. Buyers offered
prices "way below" what sellers were
asking for.
Most buyers were between one and five cents while
sellers were between
25 cents and 45 cents.
Interfin, the
only active counter, bought 3 026 Apex shares at 1 US
cent during
yesterday's trade.
A total of 35 counters were offering prices
ranging between one and 20
cents.
The best five offers
yesterday were Lafarge US$1,30, KMAL and BAT
US$1,20 and RioZim and TA
Holdings which were offering US$1,00.
Trading was brought to a
halt on the ZSE on November 20 after Reserve
Bank governor Gideon Gono read
the riot act to banks that were using
fraudulent cheques to artificially
inflate share prices.
The halt was further extended after the
country's Securities
Commission ordered stockbrokers to submit audited
financial reports of their
net worth by the end of December
2008.
The commission warned broking firms that they would be
closed if they
failed to meet the deadline.
ZSE chairman Seti
Shumba yesterday said they discussed about tariffs,
fungibility and asset
management companies at their meeting with the
Minister of Finance on
Wednesday.
"For purchases a brokerage fee of 2% was agreed,
although we wanted 1%
but he (Tendai Biti) wanted 2% to boost value at tax,"
said Shumba.
Stamp duty was agreed at 0,5% while Value Added
Tax would be 15% of
brokerage fee.
"If the Minister of
Finance wanted more revenue, it would have been
more efficient to raise the
stamp duty to over 0,65% and reduce the
brokerage to 1%," Shumba
said.
For sellers, 2% would be charged for brokerage, while 15%
would be
paid for value added tax.
Shumba said fungibility
was restored for all dual listed counters and
a letter to that effect was on
its way to the Reserve Bank.
"We suggested that asset managers
be brought under the Securities
Exchange Commission so we can share the
burden with them in funding them and
be in line with international practice.
A letter is also on its way to the
Reserve Bank announcing the change," said
Shumba.
Trade on the bourse is now supposed to be backed by a
letter of
confirmation from a bank chief executive officer.
Although Biti and the Securities Exchange Commission agreed to resume
trade
remained unresolved.
ZSE also took a long time to resume trade because
it said they were
investigating acts of insider trading which had caused
some counters to
inflate, depress or cause fluctuation of
shares.
In a statement to the Reserve Bank and Ministry of
Finance signed by
Munyukwi and chairman Seti Shumba, the local bourse said
it was
investigating all reported cases as it was a serious
offence.
"The ZSE committee has also observed with concern that
there are some
relatively large institutions which have capacity and
strategic
macroeconomic information which is used to inflate, depress or
cause
fluctuations in the prices of securities in breach of the Securities
Act
(Chapter 24:25) Section 96 (2)," said ZSE.
"This is
considered a very serious offence and will be subjected to
investigation in
order to determine complicity under the securities Act,"
the stock exchange
said.
The ZSE committee said it had not yet ruled on the issue
of defaulting
members that were revealed by the Reserve Bank last
year.
"It (activity on the stock market) was simultaneously
escalated to the
public domain as the report was being brought to the
attention of the
committee," the ZSE said.
The ZSE said the
procedure as prescribed in Rule 11.01 for bringing
this issue, as well as
other complaints about members, has not been varied
or
waived.
"The ZSE committee has a primary duty to appraise the
discovered
evidence and then set out to prove the breach. The committee must
then
follow procedures as laid down in rules 11.01-11.12," said the
ZSE.
The stock exchange committee said it would consider the
question of
final re-admission of any defaulter in two different classes
according to
rule 11.12 namely:
(i) Cases of failure
arising from default of clients or from other
circumstances where no bad
faith or breach of the rules and usage of the
exchange has been
practised.
(ii) Cases marked by indiscretion and by failure to
exercise
reasonable caution on the part of the defaulter.
"The ZSE
Committee will examine any such evidence provided in
investigating the
matter through normal channels," the ZSE said.
The stock
exchange committee also said it will call for all
participants to be
subjected to interviews regarding the circumstances of
the alleged breach
and weigh the evidence to establish the underlying
motives for suspicious
conduct and behaviour by the members as innocent,
negligent or
fraudulent.
"The quality of the evidence must be such that it
is admissible in
open court so as to provide a successful prosecution and
ultimate conviction
if the need arises," the ZSE said.
The
committee said it shall ensure that the rules of natural justice
are applied
and observed by taking all reasonable steps to ensure that every
person
whose interests are likely to be affected by the exercise of the
functions
is given adequate opportunity to make representations in pursuit
of
fairness.
Commenting on purchasing and settlement risk, the ZSE
said a precedent
was observed in the current difficulties in which bank
cheques were
dishonoured.
"This put the entire market at
risk as there was no longer any
guarantee, even by the designated
authorities in the bank that their own
paper and what they have signed for
can be rendered disabled.
Therefore no other paper will be acceptable
to stockbrokers for the
purchase of shares," said the ZSE.
BY
PAUL NYAKAZEYA
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009 19:16
FOR the superstitious, swearing in the Cabinet for the inclusive
government
on Friday the 13th was a bad idea.
The day is associated with bad
luck and as such, nothing good is
expected to happen on that date. This
particular one was no exception.
An event which was supposed to
boost public confidence in the new
administration was marred by reports of
more than the agreed number of
people turning up for the ceremony and the
arrest of Roy Bennett.
Thank goodness a government was still
sworn-in albeit against the
backdrop of mixed reactions within and outside
the country.
Evidently, the would-be donors and investors in
the West remain
sceptical.
They want to see the government work
first before resuming aid.
This reflects a change in approach to
their earlier calls for a
properly elected administration to be in place as
a precondition for
assisting the country.
The country's
leadership now has to get all things right in order to
win back lost
confidence.
The African Union and Sadc hailed the formation of
a government as
representing the success of African diplomacy.
For once, an African problem has been solved within the continent.
In other African countries the conflict could have easily degenerated
into a
civil war.
To many Zimbabweans, as evidenced by the thousands
who thronged Glamis
Stadium to listen to the Prime Minister's inaugural
speech, reports of
celebrations across the country after the deal was sealed
and the unanimous
support of an amendment to the constitution by the usually
polarised members
of the two houses of parliament, the negotiated settlement
offers a rare
chance to change things for the better.
Clearly,
a negotiated settlement is not the most ideal but rather a
practicable route
to addressing the economic descent the country has
suffered noticeably over
the past decade.
The country thus has a lot of catching up to
do. While it was digging
deeper into economic oblivion, its peers in the
region have been
experiencing impressive economic growth.
Most
of them benefited from the recent boom in commodity prices as
well as aid
from rich countries.
Angola and Mozambique, for instance, came out
of civil wars in the
late 90s and saw their economies recovering extremely
fast.
Whereas Angola benefited from rising oil prices before the
recent
slump, Mozambique was a beneficiary of debt cancellations and foreign
aid
after displaying willingness to pursue good governance.
During the same period, the Zimbabwean economy slumped from being
second to
South Africa in the Sadc region. In 1997, when recent problems
began to
manifest themselves, the country's GDP had reached US$9 billion,
trailing
behind South Africa at US$148,8 billion.
According to the
International Monetary Fund (IMF) statistics, in 1997
Angola was sitting at
US$7,7 billion with Botswana, Mozambique and Zambia
having GDP figures of
US$5,2 billion, US$3,8 billion and US$3,9 billion, in
that
order.
Foreign interest in the country was still high with the
Zimbabwe Stock
Exchange registering positive net foreign
inflows.
In 1997, for example, net foreign inflows to the Zimbabwe
Stock
Exchange amounted to about US$36,5 million for the year.
At that time the market was capitalised to the tune of US$3,5
billion.
In preceding years the net share purchases by foreigners
on the stock
market had been encouraging averaging about US$40 million per
year since
1994.
At this rate, the country seemed destined to
continue expanding its
economy with a financial system then considered to be
amongst the most
progressive ones in the region.
The
announcement of the proposed land acquisition plan and war
veterans' payouts
in August of 1997 is thought to have led to the fall of
the Zimbabwe dollar
in November, on what is now known as Black Friday.
Thereafter the
economy went into freefall with numerous other negative
events leading to a
flight of foreign capital.
For instance, in 1998 only US$960
000 was recorded as net foreign
inflow into the ZSE. In the subsequent two
years the stock market
experienced net selling by foreign investors with
US$11,4 million and
US$24,7 million going out of the country in 1999 and
2000 respectively.
The exodus of foreign capital intensified after
the farm occupations
in 2000 leading to the closure of a number of
companies.
Since then, foreign inflows into the region have
largely bypassed
Zimbabwe.
The economy has also shrunk
significantly with the Centre for Global
Development observing that the
purchasing power of an average Zimbabwean in
2005 had fallen back to 1953
levels.
With most people in Zimbabwe worse off today than they were
in 2005,
in real terms, the country must have gone back to levels obtaining
in the
early 1900s.
The country's regional neighbours have,
by contrast, seen tremendous
growths in their economies.
The GDP of
Angola, for example, is estimated at US$96 billion in 2008
thanks to the
petrodollars.
Botswana projects a GDP of US$13,8 billion during the
same period
while Mozambique and Zambia expect about US$9,8 billion and
US$15,2 billion.
Authorities in Zimbabwe project a GDP of US$5,5
billion but the latest
IMF statistics put it at only US$600 million in
2007.
In embracing the inclusive government, whatever its
glaring
shortcomings, many in the country hope it may at least stop the
decline, or
better still reverse the trend.
It deserves to be
given a chance, albeit with a pinch of salt, after
all there is no known
civil alternative on the table.
BY RANGA MAKWATA
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009
19:09
WHILE the dollarisation of the economy is a challenge to the
country's
financial sector, it has breathed life into the insurance industry
whose
clients' policies had become valueless in real terms.
Insurance Council of Zimbabwe vice president and Fidelity Life
Assurance
managing director, Simon Chapereka, told businessdigest this week
that
permission to trade in foreign currency will revitalise the troubled
sector
whose operations were being affected by hyperinflation.
"We
believe that the liberalisation of the economy has breathed life
into the
sector and we will be able to offer value for our products,"
Chapereka
said.
Insurance companies are bleeding from hyperinflation and
none-trade of
the stock market.
At least 40% of insurance
companies' investment portfolio is held in
equities, 50% in properties and
the balance in money markets and government
bonds.
Investing in government bonds was equivalent to financial suicide
because of
the rate at which the dollar was losing value against major
trading
currencies.
The non-trade of the stock market for nearly three
months had also
affected the movement of insurance companies' investments,
while the money
market was offering returns below the inflation
rate.
The stock market however resumed trade Thursday.
"The economic meltdown had rendered the value of our client's
insurance
policies virtually worthless. This resulted in the downsizing of
the sector
coupled with severe loss of jobs in order to stay afloat," he
said.
Chapereka said Fidelity Life, like other insurance
companies, had to
diversify operations to remain viable. This included
investment in property
and spreading operations into regional countries such
as Zambia, Malawi and
Angola.
"In adjusting to the environment,
we had to massively downsize
operations. We reduced our Fidelity Life
branches from 16 to just one, and
of the 300 employees we had we are left
with just 51," he said.
Chapereka said that although they were
looking forward to resume
operations with the reopening of branches, it
would be a gradual process.
"Efforts are underway to restore
the value of our clients' policies in
the foreign currency unit to instil
confidence in the market and encourage
injection of new business," Chapereka
said.
He said payment of salaries in foreign currency would
play a vital
role in the revival of the insurance sector.
BY
KUDZAI KUWAZA
http://www.thezimbabweindependent.com/
Thursday, 19
February 2009 17:49
CENTRAL African Building Society (CABS) has become
the latest victim
of the official dollarisation of the economy which brought
back to the
spotlight the soundness of banks and their role in the long
drawn out
economic crisis.
The country's biggest building
society and mortgage lender last week
closed 37 branches around the
country.
The 37 branches are 22 from Mashonaland, four from
Matabeleland, five
in Midlands and six from Manicaland.
CABS
head of retail banking Mike Finnigan said the closure of the
branches was
due to the unfavourable economic environment.
"We will still be
operating a contact centre at our head office for
any queries you may have,"
Finnigan said.
The closure of the 37 branches could slow down
property developments
due to delays in mortgage processing as the country's
economy is poised for
a turnaround.
"We hope that in the
future we will be able to return to normal
business of providing you with
full banking services," Finnigan said.
There has been a halt in the
construction industry owing to the cash
squeeze that has hit companies and
individuals alike. Building societies at
one time had frozen granting
mortgage loans.
FBC Building Society and Beverley have started to
offer mortgage
financing on a limited basis.
The economic
slowdown and the shortage of foreign currency have
impacted on the
construction of high-rise buildings and residential
properties.
The country's macro-economic conditions have had a negative bearing on
the
soundness of banks faced with contraction in the economy and the
challenges
of unrealistic exchange rates and interest rates.
Presenting his
monetary policy statement of the year on February 2,
Reserve Bank governor
Gideon Gono said with the use of multiple currencies,
banks should come up
with strategies that will ensure that they will not be
affected by any
liquidity crisis to avoid curatorship.
"It is now time for the
(banking) industry to develop aggressive
marketing strategies, incentives
and products that promote banking in
foreign currency, especially by
individuals," said Gono.
Gono hinted that a liquidity crisis was
inevitable if proper banking
practices were not adhered to as was the case
in 2003/4.
A liquidity crisis occurs whenever a firm is unable to
pay its bills
on time or lacks sufficient cash to expand inventory and
production or
violates some terms of an agreement by letting some of its
financial ratios
exceed limits.
A liquidity crunch in
Zimbabwean banks reflects a multi-dimensional
problem. A volatile economy
creates moral hazards with strong speculative
elements.
Overregulation had also resulted in an unprecedented increase in black
market activities.
Bad banking practices, weak regulation,
ineffective supervision by the
agencies and the market also induces
excessive risk-taking by banks such as
the increased participation on highly
illiquid markets such as the property
or stock market in an attempt to avoid
inflationary pressures.
Gono said all restrictions on foreign
currency cash withdrawals had
been removed.
"Banks are
therefore, required to implement complementary measures to
ensure that cash
is readily available to the transacting public. In this
respect banks shall
continue to be allowed to import foreign currency cash
from their Nostro
Accounts," Gono said.
A well-developed and sound financial system
can contribute
significantly to economic growth because of the important
role that
financial intermediaries play in bridging the disequilibrium
between savings
and investment needs within an economy.
The
importance of banks to the stability of the financial system is
also
highlighted in their broader public role in the payment systems and in
being
the main depository for the economy's savings.
To ensure the
viability of the banking sector, authorised dealers can
now levy their bank
charges for foreign currency accounts and related
transactions in foreign
currency, export for non-foreign exchange earnings
entities, individuals and
other special cases.
Banks were further encouraged to apply
prudent lending practices when
lending to individuals to finance their
current account transactions.
"Such lending shall attract an
interest rate of not more than London
Inter-Bank Offer Rate (LIBOR) + (1-6)
% depending on customers risk
assessment profiles," Gono
said.
LIBOR is the interest rate that the banks charge each
other for loans
(usually in eurodollars).
Gono said banks
should ensure that most of their loan advances were
biased towards the
productive sector to reinvigorate the supply side of the
economy.
In order to give the banking sector robust incomes
streams,
particularly in light of the shift of the bulk of their expenditure
overheads into foreign exchange, the Reserve Bank said it was encouraging
banks to deepen issuance of foreign exchange loans in support of productive
activities.
"Under this framework, the country will have a
two-tier money market
system, comprising local currency lending, which will
be at
inflation-consistent interest rates and foreign exchange lending which
will
be at interest rates that take into account the banks' risk
assessments, as
well as the cost of capital international financial
markets," said Gono.
All banks providing foreign exchange loans
will present the Reserve
Bank their general term sheets across difficult
risk categories for
assessment of reasonableness and approval.
"This oversight process is meant to ensure that borrowers are
protected from
predatory interest charges," Gono said.
BY PAUL NYAKAZEYA
http://www.thezimbabweindependent.com/
Thursday, 19
February 2009 15:24
ZIMBABWE'S unity government has started on a bad
note, confirming what
those sceptical of this deal feel and indeed the fears
of Western countries
that maybe Zanu PF is not ready or, rather, beyond
change.
The arrest of senior MDC official Roy Bennett hours before he
was due
to be sworn into office indicates the lack of sincerity on the part
of Zanu
PF and the security forces the party controls.
The
arrests go against President Robert Mugabe's pledge that he is
committed to
the deal and is sincere in his dealings.
As the leader of Zanu PF
and indeed the security forces in Zimbabwe,
the arrest of Bennett cannot be
said to be the slightest of sincere actions.
This arrest and the
intransigence still being shown with regards to
the continued detention of
political prisoners indicate that, to some
degree, President Mugabe is
losing control of his structures, especially the
security
agents.
I say so because the unity deal presents the only and
last chance to
redeem whatever is left of his legacy and present him with
probably, his
last opportunity for a dignified exit.
It is
becoming obvious, however, that many others, especially the high
echelons of
the security forces now used to running Zimbabwe from the
barracks, would
not want to cede power and return to their normal and
acceptable
constitutional duties.
President Mugabe's tolerance of human
rights abuses as a political
weapon are now haunting and already undermining
the unity government so
early in the day.
Violence and
repression is what this clique in the security forces is
used to and know
better.
They seem not to know any other role for themselves in a
stable
Zimbabwe.
The root cause of the insolence by
security forces and their disregard
for the wishes of the majority of
citizens can be traced to the wide berth
granted by President Mugabe for
them to literally do as they please, as long
as such actions maintained the
rule of Zanu PF and the flow of privileges to
the detriment of national
stability and development.
It is the same clique in the CIO, the
army and police that fears
losing these privileges they think are guaranteed
as long as President
Mugabe is in power and Zimbabwe remains without
workable systems.
A democratic, stable and prosperous Zimbabwe
is a threat to the
interests of this clique as a free and democratic Somalia
is a threat to the
warlords ravaging that poor country.
They
would rather maintain their policy of raping Zimbabwe while
holding a gun to
citizens.
Apart from this clique of security agents, there are
still many in the
high echelons of government who are not happy with this
deal.
These include the likes on Nathaniel Manheru, a well-known
senior
official whose career has been to defend the undemocratic actions and
policies of the Zanu PF government.
Manheru cannot point to
anything that he has positively contributed to
Zimbabwe apart from a
scorched earth policy on the media.
These senior officials are so
used to this way of doing business that
they cannot see themselves
rebuilding what they have destroyed.
They cannot see themselves
being burdened with the real stuff of
nation building and
governance.
To them this unity government is a threat that has to
be destroyed.
What they don't know, and what they need to be told
is that this unity
government is equally their only chance of saving
themselves and
rehabilitating their tainted lives by at least dropping the
violence and
undemocratic policies they prop up daily.
This
same clique cannot see itself surviving as ordinary Zimbabweans;
they
believe they are the royalty of this country, born to be sustained by
the
sweat of poor Zimbabweans even to the point of death while not putting a
dime back into society.
It is this clique that should be
encouraged to drop its sanctions on
the people of Zimbabwe.
The world has noticed how for two weeks now, Zanu PF and the state
media
have increased their call for the lifting of Western sanctions.
The
basis of these calls is that Zimbabwe now has a unity government
hence the
need for the West to lift sanctions.
To them the evidence of the
unity government is the paper that this
document is written on and the
signatures of the MDC leaders.
These calls should be dismissed
with the contempt they deserve until
Zanu PF and its leadership lift, first,
sanctions they have imposed on the
citizens of Zimbabwe.
Zanu
PF should show sincerity by releasing political prisoners
languishing in
detention, some dying from torture-induced illnesses.
Zanu PF
should lift sanctions it imposed on The Daily News, The
Tribune and other
newspapers and drop threats on exiled media workers and
political activists,
many who fear returning to Zimbabwe seeing what is
happening to Bennett,
Jestina Mukoko and others.
The Western demands on Zanu PF and
the unity government are therefore
spot on. Zanu PF cannot take the world
for fools and it cannot have its cake
and eat it too.
The ball
is in the court of Zanu PF.
The reasons the sanctions were
imposed are clear and in black and
white. Conditions for their removal
include the release of political
prisoners and the removal of undemocratic
laws.
We wonder what is so difficult about this for Zanu PF, if as
President
Mugabe says, he is sincere about this unity deal. Zanu PF
therefore has to
act first, and President Mugabe must put the security
agents on a leash and
take charge of his party.
The rule of
law has to be seen to be done, and not merely said to be
done.
The people of Zimbabwe need to see the unity government in physical
terms
and not words of senior Zanu PF and regional leaders.
Until this is
done, Zanu PF is in fact lying to the world. The party
is talking peace
while preparing for war.
lRashweat Mukundu is a programme
specialist for Media Freedom
Monitoring, Misa regional secretariat,
Windhoek.
BY RASHWEAT MUKUNDU
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009
15:15
FEBRUARY 11 2009 enters the annals of Zimbabwean history as a
historic
day in many respects. Apart from marking the final consummation of
the
Global Political Agreement and the swearing in of the prime minister and
deputy prime ministers, the day marked the break from a violent past to a
future of hope for all Zimbabweans.
Zimbabweans across the
political divide now expect delivery.
Yet, there are no quick fixes
to the economic challenges that the
inclusive government has to
confront.
There is no time for rhetoric or
sloganeering.
Cabinet ministers and all government officials,
including civil
servants, must leave their party caps at the doors and hit
the ground
running.
To use Lenin's rhetorical question, "I ask:
What is to be done?"
In the first 100 days, urgent priority
should be given to the building
of trust and confidence.
The
inclusive government must have unity of purpose and roll out an
irreversible
governance and democratisation agenda whose main tenets include
the
restoration of the rule of law and human rights in all its dimensions
and
the redress of all democratic deficits.
Linked to this, all
repressive pieces of legislation such as Posa,
Aippa, the Broadcasting
Services Act, Criminal Law (Codification and Reform)
Act, to mention just a
few, must be overhauled so that they are in sync
with a democratic
dispensation.
The democratisation agenda is fundamental. It will
give signals to the
international community about the functionality of the
inclusive government
and help unlock the much-needed resources for the
economic stabilisation
programme.
Second, we need to
kick-start the making of a new people-driven
constitution without any
prevarication. Zimbabwe is in need of a home grown
constitution.
It is an ideal which has been elusive in the past
because of process
issues. We hope the inclusive government will do it
properly and in a manner
which resonates with the wishes of all
stakeholders, including civil
society.
Third, the
humanitarian crisis is an urgent matter. My own
conservative estimate is
that we need at least US$100 million every month to
pay teachers' salaries,
buy books and equip the schools. Primary education
must be universal and
totally free.
In the next two months the health sector requires
US$300 million to
revamp and recapitalise all health institutions which are
in an advanced
state of dilapidation.
Zimbabwe needs at least
US$500 million to import wheat, maize, animal
feeds and other cereals in the
next six months.
Herein lies the issue of resource scarcity and
opportunity cost.
Zimbabwe's foreign and domestic debts are
hovering around US$8
billion, thanks to inflation which knocked down the
domestic debt
substantially.
The question is -- can we afford
to retire our debts when Zimbabweans
are starving and dying from
cholera?
The answer is that we need a debt forgiveness conference
which
involves the Fishmongers Group and multilateral bodies in order to
discuss
debt rescheduling, debt forgiveness, debt equity swaps and above all
debt
restructuring.
This does not mean we are repudiating our
obligations. Far from it; we
are merely bargaining for more time while we
commit resources to more urgent
and pressing humanitarian
issues.
Fourth, economic stabilisation is one of the first
priorities of the
inclusive government.
The goal of economic
stabilisation is to stop the economic bleeding
and thereafter pursue the
objective of price stability and stimulate growth.
But price
stability assumes there is a domestic currency which needs
to be
debased.
The reality is that dollarisation or multiple currencies,
are here to
stay for as long as we have not addressed the supply side of our
economy.
Local industry has to be resuscitated by increasing
capacity
utilisation from the present level of 25-35% to 65% and
above.
Our export levels are down -- a mere US$1,4 billion to date
compared
to US$2,8 billion in 1999.
The Ministers of
Finance and Industry are seized with this matter.
They need to work
out a battery of incentives and measures to
stimulate domestic output and
increase exports.
In the meantime, the Reserve Bank should go back to
its core business
of exchange rate management, revaluing the local currency,
building foreign
reserves, open market operations, debt management and
financial sector
supervision.
I am pleased that central bank
Governor Gideon Gono alluded to his
intention to halt all quasi-fiscal
operations in his recent monetary policy
statement.
These
quasi-fiscal operations had become inevitable due to the
dwindling state
revenues in the face of economic meltdown on the back of
hyperinflation, the
drying up of foreign direct investment and overseas
development assistance
and non-availability of balance of payments support.
Government
ended up resorting to the RBZ for funding of virtually all
government
business. Indeed ministers rivalled each other with funding
requests to the
governor.
We can only hope this is gone and we open a new chapter
which will see
the RBZ becoming not necessarily independent but at least
autonomous.
Otherwise the major challenge for the RBZ is how to
gradually restore
the domestic currency to convertible status over the
medium to long term.
In the meantime, as a matter of principle, all
workers in the private
and public sectors must be paid in foreign
currency.
On the other hand, fiscal policy will have to deal
with the albatross
of loss-making parastatals which have been bottomless
pits in so far as
financing is concerned.
A fiscal policy
stance which will lean towards capital expenditure and
less recurrent
expenditure will be laudable. Above all, a fiscal policy
stance which will
emphasise non-inflationary sources of deficit financing is
likely to yield
positive results.
Conventional practice would have us believe that
a deficit threshold
of 5% is desirable for macroeconomic stability but it
all depends on the
ingredients of the deficit.
There has to be
some pragmatism and flexibility.
The Minister of Finance will
have to familiarise himself with the
Ricardian Equivalence Hypothesis and
the Keynesian postulations on the
deficit and its connection with
macroeconomic stability.
I don't doubt that out competent new
Minister of Finance will rise to
the occasion and surpass the bar of our
expectations and in this regard I
wish him good luck!
Fifth, levels of domestic and foreign investment are critically low.
But we
cannot talk of mobilising domestic savings when the financial sector
is
highly disintermediated. Financial sector reform must be a top priority
for
this inclusive government.
Pari pasu, we need an investment
conference to drum up support for new
international
investment.
Sixth, we need to work on our mineral resources and
make sure we add
value in our mining sector. All illegal mining activities
must be brought
above the radar.
All systemic leakages must be
plugged so that Zimbabweans enjoy their
wealth.
The
platinum sector is a minefield of controversies and there has to
be a
thorough audit and due diligence analysis of all investments, permits
and
explorations done since 2000.
The same should be done in the parks
and wildlife sector, especially
the state of hunting
concessions.
Seventh, infrastructural rehabilitation is
critical for sustainable
development and livelihoods. We need to embark on a
massive rehabilitation
of major rural and urban road networks which have
been neglected over a long
period.
In the area of road
engineering and infrastructural development in
Africa, the Japanese are
miles ahead.
They managed to revamp Zambia's road network to first
world status
after many years of neglect during Kaunda's
rule.
Eighth, urban water planning and sewer management are a
sine qua non
for the attainment of MDGs. We need to overhaul urban water
supply systems
and do a lot of capital investment in water harvesting and
reticulation.
In this regard, local authorities would have to be
financially and
technically strengthened now that Zinwa has surrendered the
responsibility
back to councils.
Ninth, corruption must be
tackled head-on without fear or favour.
Value for money audits
should be done in all ministries and the Public
Accounts and Budget
committees should be strengthened in their oversight
functions.
Tenth, the inclusive government must respect the
sanctity of private
sector enterprise. Markets must be facilitated to work
smoothly not to be
frustrated by sometimes self-serving state intervention,
especially in
regard to pricing. We must put a stop to all covert and overt
predatory
policies.
Finally, we must not abandon
agriculture.
There is need for massive budgetary support in the
area of
agricultural inputs, farm mechanisation, import parity pricing and
technical
expertise.
Zimbabwe must regain her breadbasket
status in the 2009/2010
agricultural season. A land audit must be carried
out to determine the
question of utilisation and multiple ownership as we
roll out the new
agrarian reforms.
The task ahead is
huge.
Dr Mashakada is the MDC-T Deputy Secretary
General.
BY TAPIWA MASHAKADA
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009
15:08
WHILST congratulations are justly due to Tendai Biti on his
appointment to one of Zimbabwe's most important ministerial posts, he is
also entitled to commiserations and intense support.]
With the
Zimbabwean economy in an extremely distraught state, and a
bankrupt fiscus,
the task confronting him is a most unenviable one.
The
population is filled with hopes and expectations that the new
"inclusive"
government in general, and the Minister of Finance and his
colleagues in
economically-related ministerial posts in particular, will
rapidly lead
Zimbabwe out of it's economic morass, vigorously guide and
steer Zimbabwe
along a path of economic recovery, and restore wellbeing for
all.
And yet, doing so will not be easy for them, for the
depths to which
the economy has descended are immense.
Much
determination and innovativeness, and willingness to effect
changes to
previously destructive policies, will be prerequisites for
economic
transformation.
It is widely rumoured that one of Biti's first
actions will be to
present a revised 2009 National Budget to
parliament.
Although the Budget presented by then Acting Minister
of Finance,
Patrick Chinamasa on January 29 had some very positive elements,
equally
there were many facets which were unrealistic and unattainable, and
would be
constraints upon the desperately needed economic
recovery.
In addition, some very necessary policies and actions
were glaringly
absent from that Budget.
The appointment of Biti
affords the opportunity to make essential
changes to that
Budget.
In formulating a revised Budget, it is of utmost
importance that the
minister found it upon realities, and not wishful
thinking.
One of the grievous defects of the recently tabled Budget
was the
assumption that the Zimbabwean economy will enjoy a 2% real growth
in 2009,
and that assumption provided the foundation for projections of
fiscal
inflows.
But the prospects of such growth are minimal.
Estimates place the
contraction of the economy in 2008 at 13-15%. Shrinkage
in 2009 will not be
as horrific, but to envisage a transition from such
gargantuan negative
growth to positive growth is illusory.
This is especially so when consideration is given to the very poor
outturn
to the 2008/9 agricultural season, to the fact the manufacturing
output has
contracted from 75% of productive capacity in 2002 to less than
10% in
2008.
Many manufacturing entities have not yet resumed production
in 2009,
and numerous mines have either suspended production, or
considerably reduced
their output.
These circumstances must
mean that government's revenues in 2009 will
be less than projected. If
there is to be any possibility whatsoever (as
unlikely is that is) of
achieving the projected "balanced Budget", Minister
Biti is going to have to
effect some major cuts in governmental spending.
The minister
also needs to revise some of the taxation measures
announced in the 2009
Budget, including:
The waiver of customs duties on essential
basic commodities (such as
maize meal, sugar and cooking oil), granted to
June 30, needs to be extended
until year-end.
On the one hand,
there is no prospect of any substantive increase in
domestic production of
such commodities until 2010 and, on the other hand,
the 90% of the
population struggling to survive below the Poverty Datum Line
(PDL) will not
experience relief from that struggle within the next four
months.
Whilst it was very commendable that Acting Finance
Minister Chinamasa
wished to protect Zimbabwean industry from unequal import
competition, the
modification of duty rates was far too broad and
wide-ranging, impacting
adversely upon many non-luxury, essential products
not manufactured in
Zimbabwe.
Concurrently, adequate protection
was not accorded many other
Zimbabwean produced goods, which continue to
face inequitable price
competition from imported products. A comprehensive,
constructive review of
customs tariffs and duties is very
necessary.
Insofar as income tax is concerned, it was most
regrettable that the
2009 Budget failed to align tax rates, thresholds and
bands with those
prevailing elsewhere in the region.
Zimbabwe
has suffered an intense brain drain, crippling commerce and
industry and all
other sectors of the economy. Many factors have caused, and
continue to
cause, that brain drain, which is ongoing, but they are
considerably
exacerbated and reinforced by the magnitude of Zimbabwean
taxation.
It is also unjust that lesser income tax will be
payable on
remuneration received in foreign currency than as applies to
remuneration
receivable in Zimbabwean currency.
Why should
employees fortunate enough to be paid in foreign currency
be additionally
beneficiated by lesser taxes?
This is devoid of equity, and the tax
bands and rates applicable to
Zimbabwean currency remuneration should be
synchronised with those
applicable to foreign currency
remuneration.
There is much merit in government seeking to
accelerate its revenue
receipts, but it has "gone overboard" in requiring
businesses to pay VAT by
the third day of the month, and by further
provisional payments on the 15th
day of the month.
The former
date does not practically allow adequate time for
enterprises to complete
their monthly financial records (in fact they would
still be awaiting bank
statements and supplier invoices and statements),
enabling them to render
timeously and correctly their VAT returns and
payments.
Moreover, any business effecting sales on credit terms would not yet
have
received payment from customers.
Thus, the businesses will have to
employ yet further working capital,
usually at great cost, in order to fund
the monthly and provisional VAT
payments.
Prescription for
monthly payment of VAT by the 15th day of each month
would have been more
realistic.
Bearing in mind the massive impacts of hyperinflation, and
the
progressive elimination of 25 zeros from Zimbabwean currency, the 2009
Budget would have been, and still could be, an opportune time for
declaration of a tax amnesty for past tax offences.
This would
markedly reduce the burden upon Zimra of pursuit of past
tax compliance, and
would be a tremendous motivator for increased future
compliance, with
substantial fiscal benefits.
Tragically lacking from the 2009
Budget were meaningful investment and
export incentives, save for the
tourism sector. Substantial, constructive
incentives would be very
considerable stimuli for the economy and for its
recovery, whilst being of
no real cost to the fiscus.
Minister Biti now has the opportunity
to remedy this glaring omission.
Another major omission was the
absence of any provision to honour
compensation debts in terms of Bilateral
Investment Protection Agreements.
If Zimbabwe is to attract the extensive
investment that would be a key
catalyst of economic recovery, it must be
seen to respect and comply with
agreements it has entered
into.
Clearly there are other matters which will also require
Biti's
attention, including drastic reduction of government expenditure,
accelerated privatisation of parastatals and concurrent rehabilitation of
economic infrastructures, legislating effective Reserve Bank autonomy, and
many other issues.
http://www.thezimbabweindependent.com/
Thursday, 19 February
2009 15:00
ON February 11, in Harare, Morgan Tsvangirai drank from the
poisoned
chalice, knowing that it was poisoned. He was sworn in as prime
minister of
Zimbabwe, in a government that is still controlled by his deadly
enemy,
President Robert Mugabe. He must know that his chances of success,
even of
political survival, are close to nil.
"We are not
joining Mugabe," he said bravely.
"This is part of a transitional
relationship, negotiated. Mr Mugabe
has executive authority. I have
executive authority."
But Mugabe has exclusive control over the
army and the police, which
are regularly used to harass, imprison and
torture Tsvangirai's colleagues
and supporters. He also controls the courts,
through the justice ministry.
What Tsvangirai got was the
Finance ministry (although Mugabe's man
still controls the central bank) and
the various social affairs ministries.
In effect, he can go looking
for foreign aid, try to fix the broken
economy, and bring suffering
Zimbabweans what help he can, but Mugabe's
people still run the key
ministries that have real power over people's
lives.
Few
Zimbabweans foresaw this outcome when the Movement for Democratic
Change
(MDC) unexpectedly won a majority in parliament and Tsvangirai won
more
votes than Mugabe in the election last March.
It was an accident
that only happened because Zanu, the overconfident
ruling party, was less
thorough than usual in intimidating the voters and
rigging the count, but
the apparent defeat of Mugabe's 30-year-old regime
awakened hope in the
hearts of despairing Zimbabweans.
The hope was premature. The
regime declared that Tsvangirai's majority
was not big enough to avoid a
second round of voting, and then launched a
campaign of violence against MDC
officials and supporters that killed over
200 people and injured
thousands.]
Shortly before the second vote, Tsvangirai withdrew
from the race to
save MDC voters from a bloodbath on Election Day, and
Mugabe was
"re-elected" without opposition as the president of
Zimbabwe.
That wasn't the end of it, because Mugabe's brutal,
corrupt regime has
not just ruined the Zimbabwean economy; it is dragging
the whole southern
African region down.
Unemployment in
Zimbabwe is 94%, the currency is so worthless that
even street traders will
only accept foreign currency, cholera is raging
across the country, and
average life expectancy is now the lowest in the
world.
About one-third of Zimbabwe's 12 million people have fled to South
Africa in
search of work (and dozens were murdered there last year by
resentful South
Africans who believed that they were taking South African
jobs). In a region
that is relatively prosperous and well-governed by
African standards,
Zimbabwe sticks out like a sore thumb and that is a
problem for the
neighbours.
Foreign investors are famously ignorant about the
distant places they
invest in, and easily panic if something bad seems to be
happening in the
vicinity.
The other members of the Southern
African Development Community
(Sadc), the 14-country regional organisation,
had to do something about the
catastrophe of Zimbabwe because they were all
at risk of being tarred with
the same brush by those ignorant
foreigners.
So Sadc intervened - sort of.
Their
intention was to force some sort of deal that ended the mess in
Zimbabwe,
but they had no real plan - and they were in awe of Mugabe's
history as one
of main heroes in the liberation struggle a generation ago.
South Africa's
then-president Thabo Mbeki was particularly determined to
ensure that the
old man (Mugabe will be 85 this week) be treated with
respect, even though
he is a tyrant.
So Sadc, rather than supporting Tsvangirai's
complaint that Mugabe had
stolen the election, forced him last August to
accept a "national unity"
government in which he would inevitably be the
junior partner.
Tsvangirai did not even get agreement on which
ministries the MDC
would receive, although it was obvious that Mugabe would
never willingly
surrender control of his main instruments of repression, the
army and the
police.
The last six months have been filled
with futile wrangling as
Tsvangirai tried to wrest those ministries away
from Mugabe, while the
country sank ever deeper into poverty, hunger and
disease. Now he has joined
the government anyway, although Mugabe's thugs
were still arresting and
torturing senior MDC members even last
week.
Tsvangirai's vision for how this might succeed, insofar
as he has one,
seems to be that his presence in the government will unleash
a flood of
foreign aid that will rescue Zimbabweans from their desperate
plight. Then
his grateful fellow-citizens will vote for him in such
overwhelming numbers
in the election that Sadc has mandated for two years
hence that even Mugabe's
vote-counters cannot invalidate
it.
It isn't going to happen. Western aid donors have been
giving Zimbabwe
nothing except food relief (two-thirds of the population
depends on foreign
food aid) because they assume that Mugabe's cronies will
steal anything
else - and they see no reason to change their
minds.
As Tsvangirai was being sworn in, Britain took the
highly unusual step
of placing an ad in the Zimbabwe press spelling out that
fact: "It is
unlikely that any government involving Mugabe will inspire
donor confidence
and attract the support it so badly
needs."
But if the aid doesn't flow, Tsvangirai will have
nothing to show for
his desperate gamble. Game, set and match to Mugabe.
Pity about Zimbabwe.
Dyer is a London-based independent
journalist.
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009 19:02
IT is five
days since the new coalition cabinet started work, so to
speak.
We have no illusions about the momentous task which faces these men
and
women in getting Zimbabwe to start working again.
We believe the
ministers themselves, old and new alike, are alive to
the
challenge.
We however wish to caution the ministers against the
Obama phenomenon,
which is creating an unnecessary crisis of expectations
among the poor,
prisoners, teachers and many other sections of society who
expect miracles
from the new government.
Let the government not
fuel and feed potentially dangerous tendencies
it cannot
assuage.
It is the fastest way to creating a credibility gap and
loss of
confidence with the people.
Already blunders have
been made about the release of prisoners and the
payment of civil servants'
salaries in foreign currency.
No doubt this reflects a hangover
from the MDC's position as an
opposition party.
God forbid that
this should be a foretaste of the operations of the
new
government.
The biggest task which the government faces is not
about pretending
that it has lots of money to spend.
It is not
that it has a lot of friends from whom to borrow to finance
recurrent
expenditure either.
Nor is it an ability to make extravagant
promises which will prove
impossible to fulfill even with the best
intentions in the world.
To us the primary task is to win and hold
the confidence of both the
sceptics and detractors of the coalition
government. It is that plain. It is
not that simple to
achieve.
Zimbabweans are famed for their patience but they are
not fools.
There is therefore no need to make utopian promises
about a quick
economic turnaround, improved health delivery and agricultural
recovery.
Let our ministers, old and new, keep their feet firmly on
the ground;
they need to separate party slogans from government
business.
We all know roughly what kind of mess we are in as a
country.
We know the authors of that mess.
But we also
know that the reason there is this coalition government is
chiefly to get us
out of the mess as soon as possible, and not to expose us
to more of the
same.
What we expect as a starting point is that government
gets its
priority areas right. In our book those priorities are food, health
and
education for our children.
It is unfortunate that these
are not negotiable and cannot be deferred
for too long without rousing the
ire of ordinary Zimbabweans.
Failure to deliver quickly on these
will only provide cheap fodder for
the sceptics for whom nothing positive
can ever come out of Zimbabwe, even
though some of them are
Zimbabwean.
It is not too early to start asking each minister
to roll out his
plans for the revival of the sector under his charge,
especially for the
newcomers.
If those selected to be ministers
are serious, even before being given
a portfolio, they must have known what
the problems are and what their party
pledged to do to address
them.
The demands of transparency and accountability are that these
programmes should be laid bare for public scrutiny and comment. Let's see
the new start; let's see the new brooms.
It is unfortunate
that we have nothing positive to say about President
Robert Mugabe's choice
of ministers. Joseph Made sticks out like a tree
stump on a
highway.
His exploits as Agriculture Minister are on the
record.
His antics about monkeys disrupting fertiliser supplies
from Sable
Chemicals and his aerial forecasts of bumper harvests make him
Mugabe's
ultimate insult to Zimbabweans.
It is certainly not
the way to win public confidence.
The older generation of
Zimbabweans will not have forgotten Emmerson
Mnangagwa.
He was
a key government figure during the Gukurahundi massacres in the
early years
of Independence following another form of coalition between Zanu
PF and
PF-Zapu after the 1980 elections.
In an uncanny reincarnation, he
has ominously resurfaced as Defence
minister in the new
coalition.
With all due respect to the principle of collective
responsibility,
what miracle can we expect from the likes of Ignatious
Chombo, Stan Mudenge
and Herbert Murerwa?
Long live Didymus
Mutasa and Sithembiso Nyoni.
The only "new" faces are from the MDC
formations.
That's as much change as you get from emptying a 300ml
bottle of Fanta
into the ocean.
What we find salutary is
that there will be a healthy competition
among the ministers to deliver
through their portfolios.
In the past in a virtual one-party state,
the tendency was to please
the paymaster rather the employer.
Ministers competed to catch the eye of the president while citizens
who
voted were left to fend for themselves.
If the MDC does nothing
else but reverse this culture and make
ordinary voters its primary focus
that should be a fine beginning.
But so far we have no reason
to be too optimistic about its priorities
either.
They appear
to have joined comrades-in-crime in trying to find or
create jobs for
friends from the trenches, hence the squabbles over
governorships, positions
in the public service hierarchy and foreign
service.
The
government is already too bloated while voters get leaner if they
have
survived the cholera pandemic.
But from the tinted windows of their
newly acquired Mercs, even new
ministers have to squint to recognise the
poor guys out in the cold where
they have just come from.
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009
18:58
THE formation of the inclusive government last week is an
intriguing
experiment in a consociational (power-sharing)
arrangement.
The main political parties are trying to transform
their shared
hatreds into mutual camaraderie to rebuild a nation ruined by
leadership and
policy failures.
The public expectations are
very high that the deal could work.
It is expected the parties
would define and pursue a common vision of
restoring political and economic
stability.
The problems facing the country are
well-known.
The priorities are also clear.
The new
government needs to energetically tackle the immediate
problems to restore a
tad of normalcy before confronting fundamental issues
like structural
economic reforms and democratisation of the country via a
new constitution
and other measures.
To achieve all this, political parties were
expected to harness their
best brains and human resource skills to assemble
a competent team with a
strong intellectual base and capacity to
deliver.
It was also expected that the new cabinet would be a
mixture of talent
and experience -- driven by compelling qualifications in
areas of
deployment -- to provide serious leadership and direction in the
recovery
efforts.
Poverty of leadership and poor governance are
central in the current
crisis buffeting the nation.
Among
other things, it was also expected that the parties would insist
on the
de-politicisation of the civil service and the professional
bureaucracy.
While the political agreement defines what
ought to be achieved, it
does not say how. It is just a skeletal
framework.
The experiment in power-sharing got off to a bad
start. Any imaginings
of a reformist government coming in to steer the
country out of the crisis
were quickly eclipsed by President Robert Mugabe's
wholesale retention of
his entourage of deadwood ministers -- whom he
described last year as the
"worst cabinet" ever -- to run the affairs of the
nation.
Given the dire economic situation and other urgent tasks at
hand, it
was astonishing for Mugabe to recycle a forest of deadwood
ministers who
actually presided over the current economic ruin.
Some of Mugabe's ministers like Emmerson Mnangagwa and Sydney
Sekeramayi
have been in cabinet for nearly 30 years now.
Quite clearly they
have nothing to offer anymore. To make matters,
these ministers are not only
monuments to failure, but are also associated
with gross human rights abuses
stretching from the 1980s to the present.
It was cynical in the
extreme for Mugabe to recycle Mnangagwa and
Sekeramayi in the security
ministries where they will continue to wield
instruments of coercion, while
victims of this regime's excesses are still
yearning for
justice.
Keeping such ministers is as bad as retaining Fifth
Brigade commanders
in the top echelons of the army.
Mugabe
also brought back a host of old and failed ministers to the
patronage
network whose only qualifications are an enduring spirit of
allegiance to
him.
What sort of recovery and reforms can ministers like
Joseph Made,
Didymus Mutasa, Ignatius Chombo, Obert Mpofu, Stan Mudenge and
Olivia
Muchena bring?
Indeed, how can you ensure economic
recovery with the likes of Joseph
Msika and Joice Mujuru, the
co-vice-presidents, still ensconced at the
commanding
heights?
These are the clearest indicators Mugabe does not have
a reform
agenda.
The situation was not helped by MDC leader
Morgan Tsvangirai's own
controversial appointments.
Tsvangirai's appointments were also clearly driven by patronage and
village
politics.
Instead of carefully bringing in a crop of qualified and
competent
ministers, he just swung the door open to cronies and
loyalists.
His team also lacked representative balance among the
geographical
regions of the country.
In terms of
qualifications and technical know-how, how does one
explain the glaring
absence of Tapiwa Mashakada and Pearson Mungofa?
On the Arthur
Mutambara side, was it necessary to accommodate losing
candidates, while
leaving out elected MPs?
The Mutambara team was selected on the
basis of party seniority, not
popular mandate and
capability.
The new cabinet was not well thought
out.
It evidently lacks technocrats and that is a recipe for
failure,
especially in the absence of economic resources.
There
is also a debilitating rivalry developing within the government
at such an
early stage.
A major battle is looming between the Reserve Bank and
the Ministry of
Finance.
In the broader context, Mugabe and
Tsvangirai are poised for a fierce
tug-of-war over control of
government.
The agreement created two centres of power, one in
Mugabe's office and
the other in Tsvangirai's, which might spawn a cutthroat
contestation for
power.
This leaves the power-sharing deal
politically endangered and recovery
and reform prospects gloomy. But let us
give the new government a chance.
It may not be looking good at
present given the debacle over Bennett,
but there is at least no going
back.
BY DUMISANI MULEYA
http://www.thezimbabweindependent.com/
Thursday, 19 February 2009
15:51
WHAT did former Health and Child Welfare minister David
Parirenyatwa
think he was doing when he told the media this week that he was
leaving his
job "a happy man"?
This is shocking stuff from
someone whose ministry presided over the
cholera fiasco in which more than 3
700 people have perished from the
treatable disease.
The
failure of public health system to contain the cholera epidemic is
a huge
stain on the minister's CV and he will be remembered as the
modern-day
doctor who was completely overwhelmed by a dark-ages disease.
He
will be remembered as the minister who in November last year
promised the
nation that the outbreak was "under control".
At the time the
death toll from the disease was around 400.
When he left office it
was close to 4 000 and still counting.
As he reflects on his
tenure at the ministry, is he content with the
large number of maternal
deaths as a result of poor medical facilities in
government
hospitals?
Is he also satisfied with the closed operating theatres
at Pari and
Harare hospitals?
Before he left office, had the
dialysis machines in Harare and
Bulawayo been repaired?
In
societies where public officers are still accountable to the
electors,
Parirenyatwa should have resigned together with his cabinet
colleagues
responsible for local government and water.
But over the years, we
have seen the development of a species of
politicians who are keen to make
capital out of minuscule success and blame
bountiful failure on exogenous
factors.
It is "sanctions", our "detractors" and so
on.
This pathetic group has resorted to claiming success in
containing
problems and not preventing them.
Parirenyatwa beamed
when musicians produced a CD on cholera awareness.
That, he would
like to have on his CV! He will also log in his memoirs
as a success and his
sojourn to donors -- cap in hand -- to source basic
drugs to treat
cholera.
Also in this group, we have ministers who celebrate
the arrival of
imported grain when a few months earlier they were equally
jubilant when
they were distributing agricultural inputs.
We
have ministers now expounding the virtues of economic
liberalisation when
only recently they presided over damaging price controls
during which they
declared that business people were enemies of the state
and had them
arrested and detained.
But in Zanu PF's scheme of things,
mediocrity is oftentimes rewarded.
It is a virtue to make bonehead
decisions and then eventually drop
them without showing any
contrition.
The frontline ministers President Mugabe chose for his
cabinet last
week hail from this coterie of tinpot politicians whose
respective pasts are
blighted by monumental failures and serious errors of
judgement.
They happily look forward to Mugabe's salvage
apparatus to fish them
out of the scrap yard. Frankly speaking, who else
other than Mugabe believes
Joseph Made -- of the "fly past fame" - is the
most competent man to head
the agriculture portfolio?
The
appointment has little to do with results but this quest for
continuity,
whatever the results.
Successive Zanu PF governments have
evidently never been crafted as
results-driven entities.
Ordinarily, a Justice ministry's brief should be to deliver justice
timeously.
The minister should derive satisfaction in the
number of cases handled
and concluded by the courts and not the high number
of prisoners on remand.
Can the last Justice minister who has been
retained in his post in the
new cabinet claim
satisfaction that he
served government well in this respect?
This failure to deliver
has become an acceptable norm in government
here. We do not question it
because we have been made to believe that
government departments move at the
speed of a glacier.
Even more, our rulers' praise of mediocrity
creates laziness and puts
out that inner fire that we all should have inside
us that drives us to
achieve results.
Why should someone want
to achieve something great if they can be
praised for achieving nothing?
This is a major challenge facing the new
unity government.
The cabinet's ability to deliver should not be based on the
discredited Zanu
PF yardsticks.
We need new benchmarks to gauge
delivery.
The Agriculture minister's success must be based on
tonnes of grain
delivered to the silos and not the number of sorties over
maize fields!
I fear a situation where the new MDC ministers in
cabinet are
recruited into this damaging practice of indolence because it is
rewarding.
American philosopher and author Erich Hoffer once
said: "In the
republic of mediocrity, genius is dangerous."
He
added: "Those in possession of absolute power cannot only prophesy
and make
their prophecies come true, but they can also lie and make their
lies come
true."
We want to be liberated from the republic of
mediocrity.
BY VINCENT KAHIYA
http://www.thezimbabweindependent.com/
Thursday, 19
February 2009 15:44
President Kgalema Motlanthe has finally woken up,
it seems, to the
reality of the people he is doing business with in
Harare.
Speaking in Welkom last weekend on the fate of Roy Bennett,
Motlanthe
said: "Today I received a call from Zimbabwe because one of the
leaders who
was supposed to be sworn in as one of the ministers had been
detained.
We had to put in a word to say 'You don't do that, you
can't detain
someone who is supposed to be your partner in building a new
government'."
It was useful to have that on the record. Note
how the public media
failed to report his remarks.
Motlanthe has been among those calling for the lifting of sanctions
while
MDC officials and civic leaders are held in appalling conditions on
what
their lawyers say are spurious charges.
This is in complete
violation of the September accord which not only
requires the parties to
work together but also underlines the need for
freedom of assembly and
expression.
One of those parroting the call to lift sanctions
"immediately" is
Arthur Mutambara who, as far as we can recall, has never
once called for the
release of political prisoners or an end to abductions
and torture. We would
be happy to apologise if proved
wrong.
The courts have instructed that complaints of torture be
investigated.
We are not aware of anybody being prosecuted as a result of
such
investigations.
The Sunday Mail was complaining last
weekend that despite the
formation of the power-sharing government the West
has not committed itself
to lifting sanctions.
They really
don't get it, do they: So long as members of the
opposition and civic
activists are arrested, beaten and detained, potential
donors will not want
to have any dealings with the government even though it
contains Morgan
Tsvangirai.
Countries do not want to be seen propping up a
repressive regime that
is insincere about working with
others.
Arresting Roy Bennett and dragging him before the
courts told the
world that this is an incorrigible rogue regime that does
not really want
reconciliation or recovery.
It was an own
goal.
The Swedish government, traditionally a generous
provider, had this to
say last week:
"Now that the MDC is to take
its place in the government it is vital
that their position is fully
respected and that the country's government can
rapidly rally around an
extensive reform agenda. (We) hope that this
transitional solution is the
beginning of the end to misrule in the country.
"At the same
time it is important that all political prisoners are
released immediately
and that the country is returned as soon as possible to
fully functioning
rule of law.
Politically-motivated violence must cease immediately,
the rule of law
and respect for human rights must be restored and the media
must regain
their freedom."
The Herald carried a lead story on
Tuesday about ministers settling
into their new jobs. There was a picture of
Public Service Commission chair
Dr Mariyawanda Nzuwah telling ministers what
was expected of them.
Shouldn't ministers be telling him what they
expect of him and other
senior civil servants identified with the Zanu PF
regime?
And what is government's "results-based management
system" they were
briefed on?
What results?
One minister not shy to tell self-important officials their fortune
was
Tendai Biti. "The Reserve Bank has totally discredited itself," he told
Reuters in an interview last weekend.
"We must accept that
the Reserve Bank is at the core of this economic
decay. I make no apologies
for those statements."
Analysts say the central bank has helped
ruin the economy by printing
money and providing trillions of Zimbabwe
dollars to state companies and
government departments outside the budget,
which has fuelled inflation.
Muckraker is of the view that Gono
would make a good central banker
were it not for the fact that he is hostage
to all those elements in the
state that are bent on destroying the
economy.
And he aids and abets that process by printing money and
issuing goods
such as fuel and farming implements that are promptly resold
on the black
market by their privileged recipients.
Now
that a majority in parliament - including the responsible
minister - no
longer have any confidence in him and are opposed to his
continued tenure,
wouldn't it be a good move to admit defeat and stand down
gracefully?
Then he could write a book that does not get filed
under "Fiction" in
the library but spills the beans on how much gets
siphoned off by Zimbabwe's
parasitic elite who educate their children
abroad.
By the way, have the Americans clarified that funny
little story about
Gono being offered a vice-presidency of the World
Bank
yet?
A question: Weren't deputy ministers supposed to
be sworn in last
Friday along with the full ministers? It was set out
clearly in the January
26 communiqué.
How come this provision
was ignored?
People were probably too focused on the smuggling bid.
What a blatant
attempt that was! We are only sorry that so many relatives
had to miss
seeing their kith and kin sworn in when they were dropped from
the list
after hours of horse-trading.
And how many people are
aware that one of those the president managed
to squeeze through the back
door was a key figure in the Muzorewa regime?
Muckraker has a
theory that mediocrity and ineptitude are valued in
Zanu PF. You don't
actually have to be good at anything to continue serving.
Just being there
is sufficient.
But during the fallow years when you are in between
cabinet service it
is important not to say anything.
That way
your chance will come around again.
The Hong Kong newspaper, the
South China Morning Post, this week
reported the Chinese government as
defending the right of President Mugabe
to own a Hong Kong home after the
Zimbabwean leader reportedly paid US$5
million for a villa in the former
British colony.
"Hong Kong is a free port, and even Falun Gong
practitioners can buy a
property there, am I right?" a Foreign ministry
spokesman in Beijing told
the paper on Tuesday.
The comment
came after the Sunday Times newspaper in London reported
that Robert and
Grace Mugabe had bought a home in a luxury complex in Hong
Kong's Tai Po
district last year.
The Falun Gong movement is a religious sect
banned in China but free
to practise in Hong Kong which has freedom of
speech guaranteed in its
mini-constitution.
Police were
called to the Mugabe property last Friday, it was
reported, when two
photographers working for the Sunday Times were allegedly
assaulted as they
attempted to deliver a letter and take pictures of the
villa.
The incident took place two weeks after Grace Mugabe
allegedly
assaulted another Sunday Times photographer as he took pictures of
her
shopping in Hong Kong.
The Mugabes' daughter Bona is
reportedly studying at university in
Hong Kong and students in Zimbabwe have
held protests demanding that she be
made to study in her home
country.
Pro-democracy legislator Emily Lau called on the Hong
Kong government
to make clear its policy on whether politicians such as
Mugabe should be
allowed to visit or settle in the city. But China takes the
view that the
"sins of the fathers" should not be visited upon the
children.
Grace found herself eclipsed at Tsvangirai's swearing in
last week by
the wife of King Mswati who has evidently come a long way since
her Reed
Dance days.
She looked very smart in a
tight-fitting outfit and a flying saucer
hat that looked as if it could pick
up DStv.
However, it had to come off in the line-up to congratulate the
new
prime minister because there wasn't room for the hat and its
owner!
Did anybody see Webster Shamu's performance at the
swearing in of
ministers? Did he really have to go down on bended knee to
Grace? Is that
symbolic of his future role as Minister of
Information?
Let's hope not.
And what did ZUJ
president Matthew Takaona mean when he said Shamu was
a familiar face at
funerals of ZUJ members?
Muckraker was gobsmacked by the report
that a British and French
nuclear submarine bumped into each other in the
middle of the Atlantic. This
was an amazing feat by any definition given the
size of the North Atlantic.
The expression "needle in a haystack" comes to
mind. How did they manage it?
http://www.thezimbabweindependent.com/
Bhebhe Should Just Shut Up
Thursday, 19 February 2009
18:05
RECENT utterances by the MP for Nkayi North Abednico Bhebhe
recently
condemning the MDC Mutambara leadership for allegedly blocking him
from
assuming the ministerial position of Water Resources and Development to
which he had been nominated by the MDC-T leader, Morgan Tsvangirai, smacks
of hypocrisy of the highest order.
Bhebhe argues that he was
being rewarded by Tsvangirai for his
contribution towards the formation of
the MDC in 1999. He however does not
state what exactly it is that he
contributed that he, of all the people that
were involved in the formation
of the party, has to be rewarded with a
ministerial
appointment.
It should be noted that Tsvangirai's initial list
of ministers from
Matabeleland only had Bhebhe as the minister representing
the whole of
Matabeleland and was only changed to accommodate more ministers
when party
members from that region protested.
While it is
appreciated that the prerogative of appointing ministers
rests entirely with
the president of each party, the rationale of appointing
someone from
another political party by Tsvangirai, leaving out in the cold
those who had
stood with him throughout the period of the struggle, boggles
the
mind.
One also wonders why Bhebhe, who does not hold any
special skills in
any field, was being favoured ahead of everyone
else.
But surely the dual alliance of Tsvangirai and Bhebhe
should not take
people of Zimbabwe for granted. It is inconceivable on
their part, to
believe that their explanation of why they tried to reward
each other so
handsomely would be accepted on face value.
The two gentlemen were simply rewarding each other for transactions
done
under darkness and behind closed doors.
In the past four years,
Bhebhe has been involved in several
controversial issues to which he had no
satisfactory explanations.
Incidentally, all the issues involved
secret and private interactions
with the MDC-T group.
So,
to this extent, no one is fooled by Bhebhe's shameless antics.
He is conscious of the fact that his plan A has collapsed and is now
trying
to put plan B into motion. Plan B involves getting back to his
constituency
and appear to be a victim of the MDC leadership's
irrationality.
This, he thinks, might earn him the sympathy
of the people in the
constituency thereby allowing him to prepare some
groundwork for a
by-election in the likely event that the party decides to
take disciplinary
action against him.
He has engulfed
himself in a political flame by trying to be a
political macho man. For now,
his best option is to sober up first. He
should learn to be honest and
trustworthy otherwise he is politically
doomed.
Andile
Nyoni,
Harare.
---------
City's Water System Health
Time Bomb
Thursday, 19 February 2009 14:35
ACCORDING to the
report that was released by the World Health
Organisation (WHO) on the state
of water in Harare, the city's water has
been found to have feacal
contaminations.
Samples that were taken from both protected and
unprotected water
sources were founda to be contaminated with total and
feacal coliforms.
This is a worrying situation considering the fact
that Harare is still
battling to combat the cholera outbreak that has
claimed more than 4 000
lives since August last year.
The
Combined Harare Residents Association (CHRA) blames Zinwa for the
water woes
that are bedevilling the city.
The raw sewerage that has been
flowing unabated in the streets of
almost all high density areas --
Budiriro, Glen-view, Glen Norah,
Mabvuku-Tafara, Highfield, Kuwadzana and
Dzivarasekwa being the most
affected.
Even the boreholes that have
been sunk in areas like Budiriro have
been affected due to the raw sewerage
that has seeped into the water table.
CHRA appeals to the
government to look into the water situation in
Harare as a matter of
urgency.
Combined Harare Residents
Association
(CHRA)
info@chra.co.zw
admin@chra.co.zw
----------
Tsvangirai Needs to Avoid
Blunders
Thursday, 19 February 2009 14:22
THE recent arrest of Roy Bennett vindicates the MDC's assertion
of the
insincerity of Zanu PF.
The arrest cannot have been an
unplanned event. It is a
premeditated act designed to reinforce Zanu PF's
dominance. The act will set
off a war between the different MDC-T
factions.
Those against the inclusive government will accuse
Morgan
Tsvangirai of having put too much trust in Zanu PF whilst those for
the
inclusive government will argue that it is better to fight the
dictatorship
from within.
Fighting the dictatorship from
within is the only option left as
the AU has made it clear that they are
only going to support an
all-inclusive government.
That Zanu PF can still arrest Bennett at a time when everyone is
preaching
reconciliation and forgiveness shows that they are not sincere. If
the MDC
does not tread carefully Zanu PF will try to consolidate its
position by
trying to sow divisions.
Whatever positives are to come
from the transitional authority
will be attributed to the MDC. If Tsvangirai
however makes blunders during
this time then he will not survive. I urge him
to be smart.
The current situation where he makes
haphazard appointments --
such as the case of Abednico Bhebhe and Eddie
Cross -- only to reverse them
will give ammunition to Zanu PF. Remember they
still have the Information
and Publicity portfolio where they can still
distort the news.
The MDC needs to take note that the GNU
is just a transitional
arrangement which can come to an end any
day.
Analyst,
Wedza.
----------
GNU Must Initiate Reform
Thursday,
19 February 2009 14:22
AS a patriotic Zimbabwean it is incumbent
upon me to be hopeful
and optimistic about the success of this new
government.
The facts on the ground though instruct me to
have a contrary
viewpoint considering the Roy Bennett arrest and the clear
intransigence
Zanu PF continues to exude.
There is no
doubt in my mind however that this framework is the
only workable solution
since Robert Mugabe could not be removed through the
electoral process and
whatever strategies employed by the West to squeeze
him out only seemed to
embolden him.
I am hopeful that despite the odds stacked
against this new
government the progressive forces within it can create
avenues for the
extrication of our nation from the malaise we are in and
entrench democratic
values at the same time.
We need to
have democratic principles that will guide how our
future leaders lead us so
that we don't have another Mugabe in future.
We should
see the opening up of the airwaves that ensures a
multiplicity of voices are
heard and not the current situation where we only
hear what Mugabe wants us
to hear.
We also need to cut the umbilical cord of the
government from
Zanu PF so that there is a clear separation of party and
state.
I hope that these benchmarks are met for the good
of the nation.
Joshua Munekani,
Gutu.
---------
Bank Charges
Shocking
Thursday, 19 February 2009 14:11
blank_page
ALLOW me to express my shock and disgust after reading
the
proposed levies on FCA accounts from banks from the story "Banks set
steep
FCA charges" in the Zimbabwe Independent (February 13-19
2009).
If those are the charges we are going to be charged
then every
worker must demand payment in cash from their
employer.
We must not allow banks to fleece us whilst our
eyes are wide
open. Gone are the days when we would be ridden over
roughshod! It is time
that we stamped our authority.
Banks are there because we can deposit our money with them.
If we cannot deposit then they must go bust.
It's not like we
cannot do without banks.
For the past year we have been
doing without banks.
Even today we are not earning in
forex but we are buying
everything in forex so it means we can keep our own
money.
The last time we used banks over the past year was
when we were
able to burn forex and then use the proceeds to buy groceries
via point of
sales.
As soon as the facility was closed we
just stopped using the
banking service.
What stops us
from doing the same if we are levied these
astronomical charges? I was
surprised this week to learn that banks are
opening FCA's on a no questions
asked basis.
Were it not for the Zimbabwe Independent story I
would have
rushed to open my own FCA account immediately.
I propose that we continue keeping our forex under our pillows
until sanity
is brought into the banking sector.
Llodza,
Glen View
--------
Beware of those
Bearing Gifts
Thursday, 19 February 2009 14:10
AFRICA was born -- the poets say -- when everything was a
wasteland of
marsh and moving water! When only the children of lesser gods
played on
spider webs strung across the void. Millions of years ago, Africa
was the
cradle of man.
Ever since that time we have blamed our
misfortunes on drought,
disease, war, sanctions, poverty and our
mothers-in-law.
This is all partly true. But there is no such
thing as fate or
bad luck. It has been proved time and again that it is
individuals and
leaders who determine the course of
history.
And when those individuals have been emotionally
damaged in
childhood or have a dysfunctional marital or family relationship,
they will
lust after power and wealth to compensate for their hidden
insecurities
thereby ringing incredible suffering to their
people.
A sure sign of this is an obstinate leader who
bullies and
stamps his foot like a child to get his way.
These recidivists are often mesmeric speakers whilst they
abduct, torture
and murder.
They always seek to blame others for their
failures and will
never give in. Always thinking of me instead of the
greater good.
South Africa and our Sadc neighbours'
self-serving diplomacy was
"machiavellied" into bearing gifts for an
exhausted Zimbabwe through the
transitional unity
government.
The next blandishments will include Mercedes
Benz-strewn farms
and the poisoned chalice of power.
We still have to turn our faces like flint into the wind. And
wait for the
fat lady to sing.
Paul Tingay,
Harare.
--------
Zimbabwe
Independent SMS
Thursday, 19 February 2009
14:34
MUCH as I am hopeful this "new" government will be
progressive, it remains that -- hope. The facts on the ground are
frightening particularly with the recent arrest of Roy Bennett. Added to
that we are "entering the new era" with the same old tired
horses.
Pessimistic.
MY
biggest disappointment lies in the fact that we are
expecting a change in
direction from the same leaders whose policies got us
here. There is yet no
sign of a change in attitude nor any level of
introspection that could lead
one to start having some faith that actual
progress might now
start.
Cynical.
PRIME Minister
Morgan Tsvangirai has sacrificed a lot for
the betterment of all
Zimbabweans. What he has to do now is reorganise the
MDC's grassroots
membership, promote and reform the nation's democratic
institutions. He
should also act against the politicisation of the army and
police. The
people expect objective coverage of issues on our radios and
televisions, a
people- driven and democratic constitution and ultimately
free and fair
elections. Otherwise the deal will be an exercise in
futility.
Expectant, Harare.
THE
Prime Minister has his work cut out for him. It will
be interesting to see
where he intends to take the country in the next 100
days. What cannot be
denied is that the people will be watching him to see
if he can deliver on
his promises and there is no amount of scapegoating
that will cut the ice
with Zimbabeans this time around.
Political
Analyst.
ZIMBABWEANS have been bamboozled by the
previous
government's empty promises and they want to see a fresh
start.
Optimistic.
WITH the GNU
now in place we need real reform at ZBH.
Tafataona Mohoso and Claude
Mararike should stop venting their unhelpful
vitriol for the GNU to
work.
Reader.
TO the Sadc
leadership and Thabo Mbeki I say now that the
Prime Minister together with
his two deputies have been sworn in by
President Robert Mugabe they will
need your continued support to be
effective. We should all be proud of the
Sadc leadership for this inspiring
success and hope that they maintain their
stance of being united towards
helping Zimbabwe. We are also grateful for
their moral and economic support
to our beloved
country.
United we stand,
Bulawayo.
ONLY the patience and resilience of a
people who have been
subdued and yet are tolerant can ultimately yield a
hopeful result.
Zimbabweans have emerged united in an environment where
injustice,
corruption and deception reigned. Prime Minister Morgan
Tsvangirai has the
qualities and character to steer this country through
this devastating storm
that has ravaged and disoriented the people for so
long.
IHZ.
I THINK it would be a
good idea for us to engage UN
humanitarian organisations such as the Food
and Agricultural Organisation
(FAO). FAO has helped post-crisis countries to
rebuild food security and
considering the fact that Zimbabwe is in a
situation very much like a
country out of war, FAO's services and experience
would do us a lot of good!
Economist.
WE must spare a tear for Paul Mangwana.
He forgot that he
was just the acting Minister of Information. What is he
going to do about
all the wild promises he made now that he is out in the
cold? It was sweet
whilst it lasted wasn't it?
Analyst
THE continued spread of the cholera epidemic
shows an
administration mired in arrogance and unfettered self-importance at
the
expense of common sense.
Disgusted.
THE media has a responsibility to ensure
that all the
corruption that has been swept under the carpet by the previous
government
are exposed in the full glare of the public
domain.
Analyst.
THE article
mocking Graça Machel in the Herald (January 30
2009) cannot go unchallenged.
It stated that she is variously called Mrs
Mandela or "wife of the former
Mozambican president Samora Machel" for
lobbying purposes. It is evident
though that there is something good about
these gentlemen (Nelson Mandela
and Samora Machel) which is lacking in the
person being lobbied
against.
Cleka.
I WOULD like to
let it be known that at Chinhoyi High
School students were being beaten (not
just on the bottom) for not bringing
US$20 for their "school fees". Each
child has to pay US$20 per month and it
is just for the teachers'
salaries.
MUCH as I am hopeful this "new" government will
be
progressive, it remains that -- hope. The facts on the ground are
frightening particularly with the recent arrest of Roy Bennett. Added to
that we are "entering the new era" with the same old tired
horses.
Pessimistic.
CELLULAR
network service providers charge inflated tariffs
as if they are being
charged in local currency.
Lance
Manokore.
http://www.nehandaradio.com
20 February 2009
By Brilliant
Pongo
Nehanda Radio has it on good authority that Robert Mugabe's press
secretary,
George Charamba is trying to undermine the person of James
Maridadi by
spuriously alleging that the Prime Minister's spokesperson is
not qualified
to hold his appointed position.
Charamba is alleged to
have penned an article in the Herald's letter's to
the editor section (19
Feb 2009) calling on the government to 'rein in
loudmouthed
officials'.
The letter to the editor is said to have been forced onto the
paper at the
last minute when most staff members had left to go home and is
believed to
be Charamba's foundation for an attack and campaign to discredit
Maridadi's
person and office.
Charamba is said to have raised this
issue with Judith Makwanya and other
senior journalists at the state run
broadcaster (ZBC) and those from the
Herald newspaper on Wednesday
night.
The fiery and motor-mouthed Charamba is said to have been digging
up on
Maridadi's educational qualifications and it is said he alleges that
the
former Radio 3 DJ has no 'O' level qualifications.
However, to
Charamba's chagrin Maridadi is no idiot. He currently holds a
Diploma in
Journalism, another in Public Relations as well as a Diploma in
Business
Administration. Maridadi also holds a Post-Graduate Diploma in
Public
Management and is reading for his (MBA).
Charamba is widely believed to
be behind the vitriolic and poisonous
articles written under the pseudonym
Nathaniel Manheru in the state owned
Herald, a space which he uses and or
abuses to settle old scores and fight
those he perceives as his
enemies.
With Mugabe fast losing popularity and the media attention now
focusing on
the new Prime Minister Charamba perhaps feels Maridadi will
steal or has
already stolen his limelight.
The letter to the editor
points out that Maridadi is not employed as a civil
servant and as such he
can not speak on behalf of the government but only on
behalf of Prime
Minister Morgan Tsvangirai in his capacity as MDC-T leader,
not as Prime
Minister.
"I urge the inclusive Government to manage and co-ordinate
information
dissemination so that it does not appear as if the Government is
running its
own affairs via newspapers, TV and radio channels through the
words of
individual and unauthorised ministers." The letter
says.
Which leaves one wondering who these unauthorised ministers are?
And begs
the question should the people of Zimbabwe be kept in the dark with
regards
to the affairs of this so-called inclusive
government?
Ironically as Mugabe's spokesman Charamba basically acted as
de facto
Information Minister by speaking on behalf of Government. Now that
a new kid
on the block has arrived, Charamba is hypocritically issuing
lectures on job
parameters he himself ignored.