The soul of Zimbabwe

Dear Family and Friends,

Oh to be in Zimbabwe when spring is in the air, what a gorgeous place

it is. The cold of winter has almost gone and the wind is running

through golden grass, preparing to lift up and shake off last year's

dusty leaves. White Helmetshrikes and Glossy Starlings are back in

our gardens, Cardinal Woodpeckers are tapping in the trees while

Hoopoes spend their days stabbing termites in dry, dusty, scratchy

lawns. In the highveld bush the Lucky Bean trees have lost all their

leaves and are covered in spectacular red flowers. The pods on the

Msasa trees are turning dark chocolate brown and starting to crack,

preparing to spit seeds in all directions. Lining the streets of so

many towns, the Bauhinia trees are bursting with pink and white

flowers and the leaves on the Jacarandas have all gone yellow and are

about to fall.

This year another dramatic aspect of our beautiful Zimbabwe is lining

roads everywhere as hundreds of miles of trenches are being dug for a

communication cable. It is breathtaking to see the magnificent

patchwork of colours of soil piled in heaps along the road. Yellow,

beige, orange, red, brown, grey, black: it leaves you feeling as if

you've seen into the very soul of Zimbabwe.

Sadly, however, all is not beautiful as spring arrives and our chance

in a lifetime constitution making process has turned into a shambles.

Every day the reports just get worse and worse. The words used by one

senior official to describe the outreach programme, expose the truth

of the story: tension, friction, hostile, ugly. We hear of public

meetings turning into shouting matches, of people being abducted,

assaulted, kidnapped and of villagers being frog marched, intimidated

and commandeered. Then there are reports of COPAC (constitutional

outreach) drivers and technicians threatening to stop work as they

say they aren't getting the pay they were promised. Other reports

tell of hotels evicting COPAC personnel or refusing to give them

meals due to massive unpaid bills.

In a country where over 90% of the population is unemployed and civil

servants only earn 160 US dollars a month, its hard to find

perspective in this whole mess. One report tells of COPAC technicians

being very disgruntled at only receiving 55 US dollars a day for their

services and another 15 a day for their meals. For teachers with

degrees surviving on less than 5 US dollars a day, it doesn't really

make sense - does it?

Until next time, thanks for reading, love cathy. � Copyright cathy

buckle 24th July 2010.

www.cathybuckle.com <http://www.cathybuckle.com/>

For information or orders of my book about Meryl Harrison's animal

rescues: "INNOCENT VICTIMS," or previous books "African Tears" and

"Beyond Tears," or to subscribe/unsubscribe to this newsletter,

please write to:

 cbuckle@mango.zw <mailto:cbuckle@mango.zw>

Counting the cost of Zimbabwe's blood diamonds

2010 07 24

http://www.mg.co.za/article/2010-07-24-counting-the-cost-of-zims-blood-diamonds

Jul 24 2010 07:12

Gamba has just bought big. This week he paid $ 22 000 for a single diamond. Judging by the big wad of folded US dollar bills in his pocket, it will not be his last.

In three years Gamba estimates he has made more than $ 200 000 from black market diamond dealing, enough to buy his family a house and three cars. He is a crucial link in a chain said to connect Zimbabwe's "blood diamonds" with Mozambique, South Africa, Dubai, Belgium and, ultimately, Bond Street in London and Fifth Avenue in New York.

Diamond rush: In this 2006 photo, villagers dig for diamonds in Marange after government encouraged "enterprising individuals" to mine. (Tsvangirayi Mukwazhi, AP)

"I've lost count of how many diamonds I've bought - but it has made me rich," said the 34-year-old, previously an accountant for a car hire firm. "You can make $ 1 000 every week, but the diamonds are different quality. If you buy the right things, you score. If you buy the wrong things, you sink."

Mutare, a nest of spies and paranoia in Zimbabwe's wild east, is the latest corner of Africa to discover the corrupting power of diamonds. The nearby Marange fields contain deposits claimed to be worth billions of dollars, potentially making the crisis-torn country one of the world's top diamond producers.

More curse than blessing

Some glimpse the promise of economic salvation and the prospect that Zimbabwe could be transformed from sick of man of Africa into a new Botswana. So far, however, the gemstones have been more curse than blessing, seducing desperate and avaricious Zimbabweans and foreign mercenaries with horrific consequences. This has been described as the biggest test yet of the Kimberley Process certification scheme, created a decade ago to stamp out the use of diamonds to fund conflicts.

The trail from forced labour camp to high street store will be in the spotlight again next month when supermodel Naomi Campbell gives evidence in the trial of former Liberian president Charles Taylor. Taylor stands accused at The Hague of using blood diamonds to fuel an insurgency in Sierra Leone that cost tens of thousands of lives in the 1990s. Prosecutors say Campbell is a potentially crucial witness because Taylor allegedly presented her with a diamond gift after a 1997 dinner hosted by former South African president Nelson Mandela.

A diamond rush got under way in Marange fields after their discovery in June 2006. With a hyperinflation-crippled economy offering few alternatives, about 35 000 people, including women and children, were mining and buying there by November 2008. The once-quiet Mutare took on the aspect of a frontier town and the social impact is still being reckoned today.

Witnesses tell how children as young as 10 dropped out of school to hunt for gemstones and never went back. Teachers and other professionals quit their jobs to join the craze. Young men who got rich quick bought luxury cars they did not know how to drive, leading to numerous fatal accidents.

Diggers and buyers poured in from South Africa, Botswana, Democratic Republic of Congo, Mozambique, Equatorial Guinea, Nigeria, Lebanon, Pakistan, UAE, Belgium and India, according to a report last year by Human Rights Watch. Prices shot up, rents increased and hotels, the scene of most transactions, were always full.

Free-for-all

Prostitution, teenage pregnancies and shotgun marriages soared. Clashes between diamond kingpins resulted in deadly shoot-outs in suburban houses. Dozens of people died when poorly built mines collapsed and buried them alive.

This free-for-all could not go on. The military launched a crackdown with all the ferocity that one has come to expect from Robert Mugabe's regime. Operation Hakudzokwi (No Return) began with helicopter gunships strafing the diamond panners, cutting them down with automatic rifles as they ran. More than 200 died and many more were beaten, tortured or raped.

The military took over and the Marange fields, spanning about 425 square kilometres, are now one of the most heavily guarded areas in Africa. A small percentage is mined by joint ventures backed by a state-owned company and South African and Chinese investors. The government claims to have already stockpiled 4,6m carats worth up to $ 1,7-billion, though some believe this is greatly exaggerated.

Estimates vary that anywhere between 300 and 3 000 illegal panners still risk their lives scouring the shallow earth mines, where many of the diamonds are of low quality and of industrial use only. Some now endure a new form of slavery working for military masters in illegal syndicates. Typically a group of 10 civilians will dig through the night and split the proceeds with one soldier. One diamond is known to have sold for $ 120 000.

Gamba - not his real name - was beaten with sticks two years ago when he was caught in a protected area. He agreed to talk to the Guardian only at a clandestine meeting in a parked car under cover of darkness off a highway in the forested hills around Mutare. He explained how he still gains access to the diamond fields.

"There are four roadblocks," he said. "You pay $ 10 to the police there. At the final block you pay $ 50 to $ 100. Then you drive around; it's a big place and the diamonds are everywhere. They can put up a fence but people dig on the other side of the fence. Beatings and torture still happen but it's rare."

Once he has bought a diamond, Gamba said he takes it to buyers in Mutare, or in the capital, Harare, or across the border to Manica in Mozambique. "If you buy for $ 22 000, then you get $ 36 000. Nobody really knows how much these diamonds are worth. Some of them go to South Africa, some to Dubai." Lebanon, India, Pakistan and Europe are also destinations.

One of the most common smuggling routes is into Mozambique via a sleepy border post where baboons and bulls roam between freight trucks and rows of shacks. At a humble marketplace on the other side, people cram into ageing minibus taxis for the 20km journey to Manica.

'It all depends on the stone'

The dusty and impoverished town has few signs of diamond wealth, and the word is that its senior baron recently fled to Maputo to evade Zimbabwe's secret police.

But inside a plain white villa with a cheap sofa, a Lebanese man with a trim beard, who gives his name as Ibrahim Ali, sits behind a desk with a cheap plastic lamp. "The police are no problem here," he says. "Bring me the stuff and I'll give you a price. I can pay 1 000, I can pay a million. It all depends on the stone."

Asked what would happen to the diamonds, Ali said that he sends them to Belgium. Across the road, another dealer peered from a window but refused to emerge. His security guard said: "Bring us the diamonds and we can talk."

Back in Mutare, there are few who will talk about diamonds, and even fewer who will give their name. "People are scared to talk at the moment," said one local activist. "The government has ensured that at every place you go there are state secret agents or someone connected to them. Even in schools there are teachers who are on the payroll."

A recent scapegoat of government sensitivity was whistleblower Farai Maguwu, director of the Centre for Research and Development, and an outspoken critic of human rights abuses in the Marange fields.

Last month plainclothes officers stormed his home. One family member was slapped across the face. Another's head was locked between the knees of an officer so he could be beaten on the back, as well as under his feet. The officers camped at the house for six days, holding one of Maguwu's family members hostage.

In response Maguwu gave himself up and was charged with publishing falsehoods prejudicial to the economic interests of the state. He was detained for 39 days in Mutare and Harare. "It was very terrible sleeping in those cells," Maguwu (36) said this week. "I think it was at the height of winter and there were no blankets.

"We were sleeping on the floor. I had a chest infection and a throat infection and flu and swollen tonsils which had to be removed by surgery. I spent eight or nine days without eating anything because it was very painful to swallow."

He added: "In Mutare police station they would give you a bucket of water for the whole night. At Harare central police station it was the worst because the sewage system is dysfunctional. We were sleeping in the passage because the cells where people should be sleeping have been converted into toilets."

Maguwu was eventually freed on bail but had his car taken away. He must now report to the police every day and is not allowed to travel more than 50km beyond Mutare. He faces a possible 20-year jail term if convicted.

One-off sale

It is widely believed that Maguwu was targeted because of Zimbabwe's anxiety over international scrutiny. Last week, after long and intense debate, the Kimberley Process gave it the go-ahead to hold a one-off sale with any future exports tied to progress on the ground.

Calls for an end to the ban provide a rare common cause for Zimbabwe's governing parties, Mugabe's Zanu-PF and the Movement for Democratic Change (MDC), though the unity may end there. The MDC's finance minister, Tendai Biti, has complained that at least $ 30-million from illegal sales of diamonds remains unaccounted for.

Suspicions remain that diamond profits are being channelled directly to the cash-strapped Zanu-PF, or at least to ensure that the underpaid army remains loyal to the party. "When the next election comes, it's going to be a bloodbath," said one observer. "And that bloodbath [will be] sponsored by the Marange diamond fields."

There are fears that the Kimberley Process approval could provide a veneer of respectability for illicit sales. But many believe this is more than a domestic issue, and that a global network of diamond interests should be held to account.

Adele Farquhar (46) who is fighting a legal battle over ownership of a diamond mine, said: "People think it's a Zimbabwe problem but they forget that there is huge international complicity. You can't stop the Zimbabweans until you stop the money men.

"The people in Zimbabwe are getting next to nothing for these diamonds. The guy with the pick and shovel is literally earning $ 5. The guy to go and find is the one making $ 1 000. Go and look at the money and see who else is benefiting. That's why there's no momentum to stop this thing."

Yet again, it appears that Africa's vast mineral wealth is enriching everyone but Africans, who suffer in inverse proportion. Maguwu said: "To me it's very clear the diamonds have been a curse to this country. They have been associated with violence, they have been associated with corruption, they have been linked to the illegal international market of diamonds. I don't think the common man has benefited in any way.

"It's just a phenomenon where there's poor governance, resources lead to conflict. It's the same with Angola, DR Congo, Sierra Leone and Sudan. I believe people in the West don't really understand and appreciate the level of destruction that has been reached in order for them to receive that diamond." - guardian.co.uk © Guardian News and Media 2010

Zimbabwe - Sick man of Southern Africa

2010 07 23

http://www.theindependent.co.zw/local/27361-zimbabwe-sick-man-of-southern-africa.html

The Zimbabwe Independent

Thursday, 22 July 2010

IF PAUL the Octopus, who became famous for predicting World Cup match results during the just-ended soccer tournament, had been asked to predict contents of Finance minister Tendai Biti’s budget last week, he probably would have told the nation that revising economic growth would be the theme of the budget.

However, analysts say Biti merely told people what they already knew save for the revision of projections for some sectors. The analysts say Biti’s mid-term budget lacked evidence of broad consultation from stakeholders.

In his 2010 National Budget Statement presented on December 2 last year, Biti provided for a total expenditure of US$ 2,25 billion of which US$ 1,44 billion was to be generated locally.

The balance - US$ 810 million- was expected to come from donors.

According to Biti, only US$ 207 million had been received by June 30.

However, increased performance on the revenue side has seen total revenue for the year being revised upwards to US$ 1,75 billion, reducing the budget deficit to US$ 500 million or 9, 6% of GDP.

Analysts said the fiscal policy review had spelt the difficult times ahead but the private sector, interestingly, has to take advantage of the prevailing fragile status of government finances and reshape its balance sheet for a more difficult future.

Economist Witness Chinyama says little was expected from the budget considering the liquidity crunch that was prevailing on the market.

“The liquidity crunch that has caused stagnation in capacity utilisation for almost a year now has seen the minister revising economic growth forecasts downwards. For instance, GDP that had been initially expected to grow by 7% has now been revised down to 5,4% due to downgrades in manufacturing, mining and tourism,” Chinyama said.

Economic analyst Brains Muchemwa said the mid-term fiscal policy review brought about a number of changes, but one fact remains, and that relates to the sick economy.

“Zimbabwe remains the sick man of southern Africa, and although modest growth of 5,4% is expected in 2010, the key economic fundamentals remain fragile, and indeed, as the minister said, of course without practising it, business cannot be run on the same old mentality,” Muchemwa said.

Mining is now expected to register a 31% growth from the previous 40% while manufacturing growth forecast is now down at 4,5% from 10% while tourism is expected to grow by 3,5% instead of 10%.

Construction is expected to grow by 1,5%, transport and communication by 3% and public administration 2%, while electricity, gas and water production is forecast to shrink by 1,8%.

Agricultural growth, however, has been upgraded to 18,8% from the previous 10% due to a rebound in tobacco production.

Tobacco output which initially had been forecast at 77 million kgs has since been revised significantly upwards to 114 million kgs. Maize output rose by 3% to 1, 33 million tonnes, while beef production rose 2% to 95 000 kgs.

Some analysts said they expected the liquidity crisis to improve once the sale of diamonds from Marange commenced.

Economist Tony Hawkins said selling diamonds was a noble idea but the nation should not be kept in the dark on the procedure.

“It is a progressive idea (to sell diamonds at a national level) because it will improve cash flow. The procedure of how the sale will be conducted should not be kept a secret,” said Hawkins.

Chinyama said - “The reaffirmation by the minister of the continued existence of the multi-currency system until 2012 is a positive development indeed as it will make planning by the business community easier knowing that they will continue to use a stable currency regime.”

In the revised 2010 National Budget, the capital budget stands at 18% of total expenditure, leaving recurrent expenditure at a staggering 82% although it is an improvement over the 2009 capital budget of 4, 4%.

Chinyama said the gloomy aspect of the budget was that a greater percentage of the recurrent expenditure was employment costs like wages and salaries.

Given that these costs are non-discretionary, the minister has little room to manoeuvre which means Zimbabwe is likely to see the same structure being perpetuated in the 2010 National Budget and beyond.

Muchemwa said the budget deficit of 22% at $ 500 million (9% of GDP) points to many programmes that need to be suspended, an unfortunate sign that government will struggle to pay creditors who supplied goods and services.

“Without doubt the government will remain in this fiscal fix of being largely consumptive and, unpopular as it sounds today, civil service reform is what will set the right foundation in unlocking fiscal resources towards areas that will generate growth for the wider economy,” said Muchemwa.

“Are we settling on the Mozambican stabilisation experience of having low inflation, steady growth, high unemployment and significant donor aid,” Muchemwa questioned.

“It’s not a secret that most corporate balance sheets have become septic with debt as most companies plunged into debt with the blind assumption that they would improve production and get more profitable with dollarisation,” he said.

Writing in a local weekly newspaper, MP for Tsholotsho Jonathan Moyo said Biti’s budget was “lacklustre” and “laden with telling contradictions underpinned by his mischievous political intent”. Moyo alleges that since Biti was appointed Finance minister, he has adopted a “know -it all” attitude. Moyo accused Biti of not consulting “relevant stakeholders” on national economic issues.

“Notwithstanding his obvious inexperience and lack of professional grounding in the field, Biti has surprisingly and unwisely adopted a non-consultative I know it all attitude which has alienated key economic players including pivotal bureaucrats in his ministry, not to mention other stakeholders in and outside the coalition government,” wrote Moyo.

Paul Nyakazeya

Mugabe rural home hogs tollgate funds

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27401-mugabe-rural-home-hogs-tollgate-funds.html

Thursday, 22 July 2010

PRESIDENT Robert Mugabe’s rural home district of Zvimba and other Zanu PF strongholds in Mashonaland have controversially grabbed the largest amounts of money from tollgate fees collected nationwide, in a move which has caused dismay in government and political circles.

The move - which has also caused shock in political and civil society circles - apparently confirms the skewed distribution of national resources in the country, with most resources being allocated to areas where Mugabe and his closest cronies hail from.

Mugabe and his loyalists have over the years been accused of grabbing national resources to develop their own regions at the expense of others. This has created imbalances in national development and angered other regions which felt marginalised.

The disbursement of tollgate funds collected between August last year and June this year has raised questions about Mugabe’s role in ensuring fair distribution of national resources, especially after his home district, a place of little commercial activity, and Bindura, the capital of the Zanu PF stronghold of Mashonaland Central, got the lion’s share.

An analysis of the distribution pattern of tollgate money contained in Finance minister Tendai Biti’s recent Mid-Term Fiscal Policy review statement clearly shows that proportionally most of the US$ 15 million already disbursed by the Zimbabwe National Road Authority (Zinara) to different districts for the maintenance of the country’s road network went to Mashonaland West and Mashonaland Central. Zvimba, a growth point which is Mugabe’s home area, and Bindura got the highest sums disbursed.

Out of the US$ 15 million distributed, Bindura got US$ 2,6 million and Zvimba slightly more than US$ 2 million. Mhondoro-Ngezi in Mashonaland West got US$ 1,8 million.

All top six beneficiaries of tollgate money are in the Mashonaland provinces, Bindura (Mashonaland Central), Zvimba (Mashonaland West), Mhondoro-Ngezi (Mashonaland West), Chaminuka (Mashonaland East, US$ 510 000), Mazowe (Mashonaland Central, US$ 190 000), and Pfura (Mashonaland Central, US$ 137 655) .

Mashonaland provinces are Zanu PF strongholds. Votes from those provinces saved Mugabe and his party from the jaws of defeat by Prime Minister Morgan Tsvangirai and MDC-T during the 2008 elections. Since the emergence of the MDC in 1999, Mashonaland provinces have always stood firmly behind Mugabe and Zanu PF. Most of the provinces, including those in the Matabeleland region, Masvingo and Manicaland, Harare and Bulawayo, have largely voted against Mugabe and Zanu PF.

By contrast, while Zvimba got a large allocation for road development, other places with a hive of commercial activity such as Beitbridge - the

busiest inland border town in sub-Saharan Africa which generates millions of revenue in hard currency for the state - got paltry sums. Beitbridge, the gateway to the region, only got US$ 32 534.

Beitbridge is poorly developed even though it generates millions for government. Compared to the relatively well-developed Musina - which is only 12 km on the South African side of the border - Beitbridge is a poor and dusty town with dilapidated or non-existent infrastructure. Its potential has been undermined by lack of development.

Another border town, Mutare in the eastern part of the country, through which a lot of trade with Mozambique and other countries is conducted, was also given peanuts. Mutare is the hub of the eastern region with a lot of mineral, tourism, timber and cross-border trade. It got US$ 65 568 for road development. Mutare’s roads are in a very bad state.

Other bigger towns compared to Zvimba but which got far less money include Hwange (US$ 65 659) and Gwanda (US$ 52 079).

Most road projects around the country have not been moving due to lack of resources. While work is already underway to complete the dualisation of the Harare-Masvingo and Harare-Gweru highways, including construction of Manyame and Mukuvisi bridges, progress has been very slow due to lack of resources.

Some of the projects have actually been at a standstill for years. Construction of the Bulawayo-Nkayi road has been stalled for a long time but Nkayi as a district was merely allocated US$ 53 000.

During the first five months of the year, Zinara raised US$ 23,2 million from tollgates and road access fees. Of this amount, US$ 15 million has already been disbursed.

Zinara chief executive Frank Chitukutuku yesterday refused to comment on the issue, saying he was only able to do so next week upon his return from South Africa.

However, political parties expressed outrage at the way tollgate fees were distributed.

MDC-T spokesman Nelson Chamisa said national resources must be distributed in a fair and equitable manner.

“We don’t believe in lion’s share claims of any portion of the national cake by any province ahead of others. Sharing of the national cake should be equitable and equal among all provinces of the country. We oppose these enclave developmental agendas,” he said.

“We want equity and transparency in the distribution of tollgate funds or any other national resources. There is too much opaqueness; we need openness and accountability in the way resources are distributed and shared.”

Zapu slammed the manner in which the distribution of tollgate funds has been handled, saying this provided further evidence that Mugabe and his cronies have been diverting most of the national resources to develop their own home areas at the expense of other regions.

Zapu spokesman Methuseli Moyo said this “sinister pattern” in the distribution of national resources has been going on since 1980 and must be stopped.

“It follows a pattern of inequitable distribution of national resources and skewed development that has been there for the last 30 years,” he said. “It is worrying that even with a minister from a political party other than Zanu-PF, this pattern still exists. It must be stopped,” Moyo said.

“There have been no major road network development in Matabeleland. If you move from Bulawayo to Tsholotsho or Bulawayo to Kezi and other districts in this region you will be shocked by the state of the roads. There is no development in this region.”

Moyo said that was why his party wanted devolution or decentralisation of power, a political system of governance that empowers provinces or regions to directly benefit from local resources, during the current constitution-making process. “Devolution or decentralisation of power is one way of addressing such problems,” he said.

MDC-M secretary-general Priscillah Misihairabwi-Mushonga said she had not yet analysed the tollgates funds distribution.

Zanu PF spokesman Rugare Gumbo said his party has not discussed the issue of tollgate fees disbursement. “That is an issue we never discussed as a party. I think those funds were distributed by the Minister of Finance using his own judgment.”

Farai Mutsaka

Zanu PF ministers named in company seizure

2010 07 24

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27397-zanu-pf-ministers-named-in-company-seizure.html

Thursday, 22 July 2010

THREE Zanu PF cabinet ministers have been named as trustees of an organisation that reportedly forced a Rusape farmer to cede a 50% shareholding in his business under the guise of the land reform programme.

The ministers, Didymus Mutasa, Patrick Chinamasa and Joseph Made, are named as trustees of Makoni Wildlife Farming Trust, which was allocated wildlife-rich Mona Farm in Rusape belonging to Gordon Taylor in 2008 during Mutasa’s tenure as Minister of State for National Security, Lands, Land Reform and Resettlement in the President’s Office. The other trustee is former Zanu PF Manicaland chairman Shadreck Chipanga.

Sources said Taylor was invited to Mutasa’s house in Rusape between August and September 2008, where he was told to give up half the shareholding in Mona Agricultural Tourism (Pvt) Ltd, which was conducting business on the farm before it was designated for compulsory acquisition.

Taylor was the owner of Mona Agricultural Tourism (Pvt) Ltd. Subsequent to the meeting, the sources said, a memorandum of agreement was drafted under which Ms Maud Murembwe was to represent the interests of the trustees in the business.

The agreement reads - “Within seven days after the signature of this agreement; the parties shall be obliged to procure that Mona ratifies and adopts in writing the provisions of this agreement and that the transfer of shares referred to in clauses 2.3.1 are duly transferred, consideration therefore being an undertaking, hereby expressed, by Murembwe, that Gordon Frederick Taylor shall be formally employed in a management capacity by Mona, terms and conditions of which shall, as far as practically possible, remain the same as those benefits currently enjoyed directly and indirectly from Mona.”

Under clause 2.1.1 of the agreement, Gordon Frederick Taylor and Linda Taylor were supposed to transfer their shares in Mona to Taylor and Murembwe in a way meant to achieve an equal shareholding in the issued shares between Taylor and Murembwe. No further shares were supposed to be issued and the unissued shares remained in the control of Taylor and Murembwe.

Although officials at the Registrar of Companies said the Zanu PF officials were yet to be listed on the CR 14 of the company, the Trust’s proxy was already reaping dividends from its operations, the sources said.

“Makoni Wildlife Farming Trust got 1 100 hectares and granted the beneficiaries the right to operate. Maud is benefiting 50% from the farm but did not contribute anything. The Zanu PF people are just looting from the property where the Taylor family invested heavily over the years,” said a source.

“Due to pressure from Mutasa, Chipanga, Made and Chinamasa, Taylor was forced to give up 50% of his shares to Maud,” the source said. “The controversial businessman (Temba) Mliswa was also involved in the acquisition of Mona because he was sent around by Mutasa.”

Mutasa yesterday denied that he had any links to Mona (Pvt) Ltd.

“I don’t know what you are talking about,” he said. “Anyway, I thought Zimbabweans were working together but some of you (Zimbabwe Independent) are still concentrating on dividing us,” he said.

Chipanga denied that Taylor was disturbed by the farm acquisitions, saying he was one of the few white farmers in Makoni District. He acknowledged being part of the Makoni Wildlife Farming Trust.

“I am not aware of the shares that were taken from Taylor. I remember there was mention of the trust but don’t know what happened to it,” said Chipanga.

Made could not comment, saying he was in a meeting but subsequent efforts to reach him were fruitless as his mobile phone went unanswered. Chinamasa was also not reachable. The directors of the company are still listed as Gordon, Caroline and Leonard Taylor, according to sources close to the company.

Officials at the Deeds Registrar said that the Makoni Wildlife Farming Trust was not registered.

The trust named Taylor and Maud Murembwe - a close Mutasa ally - as its beneficiaries in the offer letter that allocated the farm to the Trust.

Taylor declined to comment, referring questions to his attorney, David Drury, who said he was dealing with the case but refused to release details citing client confidentiality.

Brian Chitemba

Civil society to press AU over political crisis

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27395-civil-society-to-press-au-over-political-crisis.html

Thursday, 22 July 2010

CIVIL society will challenge the African Union to closely monitor the implementation of the global political agreement and humanitarian crisis in Zimbabwe during the AU’s 15th ordinary session summit in Uganda.

The civic organisations meet in Kampala, Uganda, today and will be joined by governments’ representatives and diplomats, where they are expected to urge the AU to push for political and economic reforms in Zimbabwe.

Political parties - Zanu PF, MDC-T and MDC-M formed the inclusive government in February last after the signing of the GPA on 15 September 2008 but political and economic reforms have dragged.

One of the organisations attending the meeting, Crisis in Zimbabwe Coalition, will tackle issues related to the global political agreement and human rights violations.

Crisis in Zimbabwe Coalition chairman John Makumbe, who left the country for Uganda yesterday, said the AU was failing to intervene in the political crisis in the country.

He said the African body was not doing enough in monitoring the regularly flouted GPA. Zanu PF is accused of failing to adhere to the GPA and the MDC-T is complaining of a host of outstanding issues including the swearing-in of Agriculture Deputy Minister-designate Roy Bennett.

“The AU needs to do more about Zimbabwe’s political situation,” said Makumbe. “They are not playing their role because the GPA is not implemented. We have lost hope in Sadc because they have failed.”

Sadc has taken a long time to find a lasting solution to a stalemate between the feuding political parties to the GPA although the Southern African body is also expected to meet to discuss the Zimbabwean issue.

There is of grave concern, Makumbe said, over AU’s sluggish approach on the political violence perpetrated by Zanu PF against political opponents and the civic society.

“There is nothing in place to stop widespread violence in the country,” Makumbe said. “The AU is ignoring the volatile political situation in Zimbabwe. Perpetrators of human rights violations have not been brought to book. As civic organisations, we are saying something should be done to correct the state of affairs,” he said.

Cases of political violence continue rising even during the constitution- making process. Reports say Zanu PF is orchestrating a wave of violence against civic organsations and MDC-T members in rural areas.

More cases of political violence are likely to be witnessed if the country goes to elections next year. Civil society has urged for political reforms that would allow free and fair elections.

Makumbe said the constitution-making process was likely to come under the spotlight at the Kampala summit. He said it was worrying that violence reared its ugly head during the constitution outreach exercise.

Another civic organisation, Women in Politics Support Unit, is also expected to send representatives to highlight the socio-political crisis in Zimbabwe.

Heads of State and Government convene in Kampala from July 25-27 where they are scheduled to participate in the summit that will focus on peace and security, energy, infrastructure and food security.

Authorities in Uganda have assured that the country was ready to host a safe summit despite the recent al-Shahbab suicide bombings that killed more than 70 people.

Brian Chitemba

Cabinet approves parastatal reforms

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27393-cabinet-approves-parastatal-reforms-.html

Thursday, 22 July 2010

CABINET on Tuesday approved a raft of proposals by Minister of State Enterprises and Parastatals Gorden Moyo which will pave the way for sweeping reforms at the mostly dysfunctional public entities which are either technically insolvent or facing collapse.

Moyo yesterday confirmed approval of a number of issues which he had presented to cabinet to overhaul the public entities.

“We have 76 state enterprises and we are currently working with them to deal with a number of issues which need urgent attention,” Moyo said. “Cabinet on Tuesday approved our proposals to address issues related to performance of those public entities, their corporate governance, debts and restructuring programmes.”

Moyo had made proposals on corporate governance and performance at state enterprises and parastatals to cabinet for consideration and this was approved.

Some of the approved issues related to the board of directors, appointment of substantive chief executive officers, board fees and sitting allowances, remuneration of CEOs, financial reporting and annual general meetings, staff complement and restructuring. The need for state companies to adhere to procedures when entering into joint ventures and strategic partnerships was also approved.

Moyo has been pulling out all the stops to reform state enterprises which have been bedevilled by mismanagement, incompetence, corruption and debt. The public entities have been a huge burden on the taxpayers and have been failing to deliver reliable and quality services.

Even basics such as water and electricity, as well as education, health and transport are a problem mainly because of the failure of state companies to deliver.

Moyo has been holding meetings with state enterprises and parastatal boards and CEOs to discuss ways of addressing serious problems facing the public entities.

So far the minister has met with management at Grain Marketing Board, Pig Industry Board, Zupco, Industrial Development Corporation, Agricultural Rural Development Authority, Agribank, National Social Security Authority, TelOne, Potraz, Zimbabwe Mining Development Corporation, Zimbabwe National Road Authority, Rural Electrification Agency and National Parks.

The issues discussed with the heads of parastatals related to performance, corporate governance, restructuring and debt.

Moyo yesterday met with the ambassadors of South Africa, Brazil and India to “compare notes and share experiences” on parastatal reforms and management.

The minister and the ambassadors’ discussion focused on experiences of reforming state-owned enterprises, areas of cooperation, learning tours and strategic partnerships.

Moyo is also soon expected to meet officials from the U

nited Nations Development Programme and Britain’s Department for International Development. The issues which would be discussed include challenges facing state enterprises and parastatals, restructuring of public entities and technical assistance.

There are concerns that some state enterprises such as ZMDC enter into joint ventures and strategic partnerships without following due process. This sort of behaviour has resulted in government being prejudiced in terms of equity and revenue, while individuals enriched themselves from public assets at the expense of the nation.

ZMDC is particularly in the spotlight after it entered into joint ventures with South African companies to mine diamonds at Chiadzwa without following due process. This resulted in the formation of Mbada Diamonds and Canadile which are at the centre of controversy over diamonds mining. The joint ventures were established without transparency and hence lack of accountability in their operations.

The proposed restructuring process requires that a responsible minister - liaising with the Minister of State Enterprises and Parastatals - presents a proposal to the inter-ministerial committee on commercialisation and privatisation of parastatals before it is approved by cabinet.

Line ministers have now been told to ensure that due process, as directed by cabinet, in the restructuring of state enterprises is complied with.

In his recent mid-term fiscal policy statement, Finance minister Tendai Biti said government was intensifying its programme to rationalise state enterprises.

“Government has categorised public entities into three broad categories, namely those to be commercialised, those to be privatised and those to be restructured,” Biti said.

“The Ministry of State Enterprises and Parastatals will be required to produce, working with line ministries, case-by-case time-framed implementation strategies for commercialisation and privatisation during the last half of the year.”

Biti said public utilities still faced a number of challenges, notwithstanding the opportunities brought in by the new economic environment.

In line with cabinet guidelines over the deployment of adequate revenue collections towards service delivery and development, public entities including local authorities, would now be required to observe the 30 - 70 ratio.

Under this requirement, particularly with regards to Zesa, local authorities and Zinwa, at least 25% of the revenue collected would have to be earmarked for infrastructure maintenance and rehabilitation programmes.

“The efficiency, competitiveness and effectiveness of most public utilities is being compromised mainly by under-capitalisation,” Biti said.

“Given resource constraints by government to recapitalise its parastatals, the focus will be on attracting private capital through speeding up privatisation as well as public private partnership models.”

Moyo said it was worrying that some state enterprises have been operating without boards, some boards take time to be appointed and lack requisite skills, while some people sit on too many boards.

He said there was need to appoint substantive CEOs, ensure board fees and sitting allowances were properly approved by ministers and salaries for heads of state entities were rationalised and approved by ministers. State enterprises would now be required to meet their financial reporting requirements and regularly hold their annual general meetings. Staff at the parastatals also need to be rationalised, Moyo said.

Dumisani Muleya

Zim diamond sale unlawful - ACR

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27391-zim-diamond-sale-unlawful--acr.html

Thursday, 22 July 2010

ZIMBABWE’S usually divided cabinet on Tuesday unanimously endorsed the export of diamonds mined from the disputed Marange fields, but a London-listed firm at the centre of an ownership fight says the planned sale is unlawful.

Cabinet ministers from President Robert Mugabe’s Zanu PF party and the two MDC formations explicitly agreed to the exports after closing ranks on sticking issues on transparency of mining operations, strictly regulated sales and new laws to regulate alluvial diamond mining.

Sources told the Zimbabwe Independent that cabinet had fully supported measures to export Marange diamonds under strict regulation and monitoring.

Zimbabwe presented a united front in lobbying the Kimberley Process Certification Scheme (KPCS), a diamond monitoring group which controls over 90% of the alluvial diamond market, to allow Marange diamonds to be sold under the organisation’s certification.

The KPCS last week allowed Zimbabwe to trade limited stocks of Marange diamonds until a review team visits the country and makes recommendations on whether the body should allow full exports.

London-listed African Consolidated Resources (ACR), which has a Supreme Court ruling in its favour, yesterday warned international buyers not to buy stones from Mbada and Canadile.

ACR CEO Andrew Cranswick said - “We welcome the KP approval for resumption of Zimbabwean diamond trade but remind all would-be sellers and/or buyers that KP certification relates only to conflict issues and they do not claim to certify rightful ownership by the sellers. Further, they have no jurisdiction over Zimbabwe’s Supreme Court in this regard. I reiterate that any sale of the goods from Marange will be in contravention of the Supreme Court ruling and no-one is above that ruling. We therefore stress the urgency of settlement and assuming that is achieved, a subsequent joint application to the Supreme Court seeking the annulment of their order by consent.”

Sources said cabinet was in a “celebratory mood” on Tuesday as Mines and Mining Development minister Obert Mpofu presented a report detailing the KPCS decision, taken after protracted talks in Russia.

According to sources, Prime Minister Morgan Tsvangirai’s ministers, who had joined civil society in calling for the withdrawal of soldiers in Marange and an end to alleged rights abuses by soldiers controlling the fields before trade could resume, had backed down after winning concessions on new regulations.

Failure by the international community to fund Zimbabwe’s economic recovery also resulted in the MDC backing down on their tough stance after realising that diamond sales could be the only feasible way to inject money into the economy.

In his mid-term budget review statement, Finance minister Tendai Biti alluded to consensus in government on the need to craft a Diamond Act that would ensure that all alluvial diamond mining would be done by and through the state. The law aims at curbing leakages and opaque licensing that dogged Mbada Diamonds and Canadile Miners, joint venture firms between the government and South African investors.

The Diamond Act would be supported by new measures that would force parastatals and government agencies such as the Zimbabwe Mining Development Corporation from entering into partnerships without cabinet approval.

Although a KPCS appointed monitor, Abbey Chikane, is set to travel to Zimbabwe next month to stamp and supervise sales following the decision in Russia, local legal hurdles still remain for Marange stones to trade unhindered.

ACR was kicked out of Marange in 2006 but subsequently won a High Court case confirming its right to land where Mbada and Canadile are mining.

Government has in the past illegally exported diamonds to Dubai in violation of a Supreme Court ruling which ordered an immediate freeze in all mining activities at the controversial Chiadzwa diamond fields.

Zimbabwe Mining Development Corporation (ZMDC) is working with Mbada Diamonds and Canadile in joint-venture partnerships hurriedly formed and given licences without going through transparent procedures last year.

ACR says all the diamonds mined by ZMDC since 2007 and now by Mbada and Canadile were extracted from its claims. The company has been fighting in the courts to reclaim its concessions.

Cranswick, however, said he was optimistic government would approach them soon with some kind of a settlement.

This comes after Finance minister Tendai Biti highlighted the need for an out-of-court settlement.

ACR, according to other reports, is keen on having Biti as a mediator.

Last September, Justice Charles Hungwe ruled in favour of ACR and said his order should stand notwithstanding an appeal.

Mpofu, ZMDC and the Minerals Marketing Corporation of Zimbabwe appealed and the Supreme Court ruled in February that Mbada and Canadile should “cease all mining activities” in Chiadzwa pending the finalisation of the appeal because ACR could suffer “irreparable damage” if it eventually wins in the courts. It, however, suspended Hungwe’s order.

Farai Mutsaka/Chris Muronzi

Hopes looters will be prosecuted fade

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27387-hopes-looters-will-be-prosecuted-fade-.html

Thursday, 22 July 2010

HOPES that the arrest of controversial businessman Temba Mliswa will reignite investigations into the alleged looting of commercial farms by Zanu PF bigwigs under the pretext of land reform are slowly fading, with dispossessed farmers now saying they are opting to sue “chefs” who took their movable property and other personal possessions.

There was excitement among former commercial farmers that the net might be closing in on top Zanu PF officials who looted farms after police arrested and charged Mliswa with fraud and looting farms.

Co-Home Affairs Ministers Kembo Mohadi and Theresa Makone’s statements that police should investigate anyone irrespective of their rank, position or status in society also rekindled hope that something was finally being done after a decade of lawlessness on the farms.

However, close to a month after Mliswa’s arrest and his continued incarceration at Harare Remand Prison, no attempts have been made to re-open cases or prosecute new ones committed last month.

Weeks after Makone circulated a dossier to senior Home Affairs officials linking top Zanu PF officials and security chiefs who allegedly looted farms and defied High Court orders, information to hand indicates that not much has been done.

Commercial farmers interviewed by the Zimbabwe Independent said although the ministers’ statements and Mliswa’s arrest had raised hopes, they now do not expect anything to come out of it because they were informed by the police when they followed up on their cases that there would not be any arrests or prosecutions related to farm invasions.

However, police spokesperson, Assistant Commissioner Wayne Bvudzijena urged the farmers to make follow-ups on the cases they have reported as there was no policy stating that certain persons were above the law.

“People must pursue their cases. We have a clear procedure when a person makes a report,” he said. “Some of these people want to talk without checking how far investigations would have gone.”

The farmers now believe that their only option to deal with the matters was through suing people who dispossessed them of their possessions because criminal suits have not worked, despite rulings by the High Court for the new farmers to return stolen property or to vacate the occupied farms.

Michael Jahme, who last month lost his farm, Silverton Estate, to Chipinge magistrate Samuel Zuze, Prosper Sithole and Masimba Kamba - a senior officer in the Central Intelligence Organisation - said he planned to sue the three who were given offer letters.

The three were issued with offer letters despite a memorandum of agreement between Silverton Estate (Pvt) Ltd and the Ministry of Lands in 2002. The two agreed that Lot 8 of Newcastle measuring 314 ha would not be acquired, after Silverton Estate gave government Lot 6 of Newcastle measuring 251 ha for its land reform programme.

“I plan to file a civil case against the people who were given offer letters and also the police in Chipinge who failed to protect us. I want to sue them for loss of income and the assets they took,” he said.

“They have no right to steal our personal property. The land issue is one thing, but the theft of our personal things has nothing to do with the land issue and it is painful to know that none of these people will ever be prosecuted.”

According to a statement to the police by Jahme’s wife, Elsie, she was attacked on June 8 around 1 am by seven men who told her that they had come to take possession of “their” property. This happened when Jahme was away on business in South Africa.

The men left after she told them to come back in the morning, but they later returned with 13 more people, who were armed with various weapons including sticks, steel bars and machetes. The police arrived around 9am and were shown High Court order case number HC 982/2010 handed down by Justice Omerjee, that barred Zuze, Kamba and a A Masona from entering Silverton Estates and taking over possession, control and use of their crops, plantations, livestock, machinery and equipment.

According to the wife’s statement, the police said they were too junior to act but promised to return after consulting their seniors. After the police left, a woman believed to be Zuze’s wife arrived and ordered the farmer to pack her belongings and vacate the property. She had to sign a document stating that she had decided to leave the property on her free will.

The Jahme family lost household property and clothing worth close to US$ 29 000 and farm equipment, which included a scania lorry, trailer, tractors, electric motors and fuel worth US$ 865 000.

Meanwhile, the wife of Richard Etheredge of Chegutu, Katherine, who lost their farm, Stockdale Citrus Estate in 2009, and movable property to president of the Senate Ednah Madzongwe, wrote in an open letter to her that - “You believe that all we have worked for is yours. We have been forced off Stockdale with absolutely nothing. My sons and their families are homeless - they are living with friends, taking turns to spend a week at a time with them. We have nowhere to go.”

She said household furniture and goods from three complete homesteads, clothing and licensed firearms valued at US$ 500 000 were looted from the farm.

“We walked off that farm with the clothes we stood up in,” said Etheredge. “Also there were tractors, trailers and all our farm equipment. We estimate the stolen farm equipment to be around US$ 1 million,” she said.

Etheredge, who together with her husband now reside at a retirement village, said they lost 600 tonnes of export oranges.

This was done despite having a High Court Order case number HC 317/07 authorising the Etheredges to remain on the farm until lawfully ordered to vacate by a court.

Richard Etheredge was arrested in 2007, together with eight other farmers in Chegutu, for illegally staying on farms but later acquitted.

Etheredge is one of the farmers that took the Zimbabwe government to the Sadc Tribunal.

While another farmer, Bruce Campbell, of Mount Carmel Farm has accused Zanu PF politburo member Nathan Shamuyarira of looting tractors worth US$ 588 000, reaping mangoes, oranges, maize, sunflower and other crops in 2009 worth US 263 000, fertiliser worth US$ 22 000, loss of income for 2010 cropping season US$ 410 000 and for the houses and goods a total of US$ 481 000.

This was done despite the Campbells having High Court orders HC 162/09 dated April 20 2009 and another, HC 1751/09, stating that Shamuyarira should vacate the farms.

Faith Zaba

Tsvangirai his own man - Makone

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27385-tsvangirai-his-own-man--makone.html

Thursday, 22 July 2010

CONTROVERSY appears to be co-Minister of Home Affairs Theresa Makone’s middle name.

A self-professed beautician, her appointment to a sensitive security ministry, that of Home Affairs, raised as many eyebrows as her ascendancy in the MDC hierarchy where she took over the women’s assembly leadership from Lucia Matibenga in questionable circumstances.

Those who want to see this woman’s back viewed her rush to facilitate the release of Zanu PF hardliner Didymus Mutasa’s son from police custody as a nail in her turbulent, but seemingly rising, political career.

But after escaping from the incident without censure - police described her behaviour as illegal - many neutrals, and even rivals, appear resigned to the fact that her closeness to Prime Minister Morgan Tsvangirai puts her beyond reproach.

Some within the MDC party put her so close to Tsvangirai that they claim she is a key component of his so-called kitchen cabinet which influences party and ministerial appointments.

Does she control Tsvangirai from his home to Munhumutapa Building, right down to Harvest House ?.

This question came after the Zimbabwe Independent put it to her that many think she could have been behind Tsvangirai’s reported love affair with one Locadia Tembo, reportedly a close relative of Zanu PF MP for Goromonzi Beatrice Nyamupinga.

“Tsvangirai’s appointment of ministers and personal relations are his prerogatives,” said Makone in an interview from her new offices at Mukwati Building on Tuesday. “We don’t control our party president and we are also not in any way related to Tsvangirai. My husband comes from Southdowns in Chipinge, just a step from the Mozambican border and Tsvangirai hails from Buhera. Our relationship with Tsvangirai started in 2000 when we joined the MDC as ordinary members.”

She vehemently denied that together with her husband, Ian, they have ring-fenced the former trade unionist and that he is hardly accessible to some of his former comrades such as Matibenga.

Ian is Tsvangirai’s chief secretary in the Prime Minister’s Office.

On allegations that she was influential in bringing former radio personality James Maridadi to the PM’s office even though he lacked relevant experience, Makone said - “He is just a warm person who wouldn’t even hurt a fly. I knew him as a DJ but I’m not the one who influenced Tsvangirai to appoint him.”

Out of the hundreds of activists such as Farai Maguwu who have faced what rights groups have described as political persecution, Makone chose to start her new job by rushing to the assistance of Mutasa’s son, Martin, who was arrested together with Zanu PF member and businessman Themba Mliswa on a fraud charge.

Is she related to Mutasa or Mliswa ?.

Why would she jump at the first instance to rescue a person accused of using political influence to muscle out a private businessman ?.

“When I gave birth to my first baby in the UK in 1976, Mai Mutasa (Didymus’s wife) was like a mother to me and she taught me how to take care of the baby. I didn’t know anything concerning child upkeep because I was just a simple girl straight from university. Mai Mutasa was a nurse and I still believe she is still a nurse in the army. That’s how I came to know the Mutasas but we are not related in whatever way,” she said from her 11th floor office.

It is from this plush office that she is expected to do what her predecessor Giles Mutsekwa, a former military officer, failed to do when he was in the same seat. For 15 months, Mutsekwa, an army major before joining politics, watched helplessly as the police shredded his instructions, leaving him to publicly admit that he had no effective control over Augustine Chihuri and his men.

Makone said she will be different in spite of her lack of experience in this sector, showing a certain naivety of how contemptuous the police are of anyone viewed as a Mugabe rival, including cabinet ministers.

“I will work for or enforcement of law without fear or favour,” she said.

“This is a big ministry with many challenges. I can’t do everything by myself, but with the help of my co-Minister, Kembo Mohadi, we will do our work properly.” Makone said she recently handed over to her permanent secretary a dossier of cases she wants investigated and prosecuted to show her determination.

“The permanent secretary is the most senior official in any ministry, that’s why we gave him the document,” she said. “From there the papers will then be taken to the police who will institute arrests against the wanted persons. That is the way we operate, we have our line of command.”

“We will work together with my co-minister Mohadi to enforce the law,” she said. “Reforming the police, believed to be partisan, requires working hand-in-hand with all parties in the inclusive government. It’s not an individual thing.”

Makone, who grew up in one of Harare’s poorest and most crime-ridden suburbs of Mbare, says she is no novice in politics.

She was a student at the then University of Rhodesia in 1973 when she was forced out for being part of demonstrations against the expulsion of student leaders who included her husband, Ian. Ian had been expelled together with Mavambo leader Simba Makoni and Harare governor David Karimanzira.

She went to the United Kingdom in 1973 where she studied Bio-Chemistry and Human Nutrition at Nottingham University. She met her husband, Ian, who was studying at Leicester University in February 1974 before they married two years later.

Born Theresa Chigariro on October 6 1952 in the volatile Highfield township, Makone said she joined the MDC a year after the party’s formation. Her husband was a founder member of the party that was to end Zanu PF’s political dominance.

She was district treasurer in Wedza when she contested the 2005 parliamentary elections and lost to Mashonaland East governor Aeneas Chigwedere.

She rose to the post of MDC provincial chairperson in 2006 before taking over the Women’s Assembly chairperson in 2007 in scenes characterised by violence, vote buying allegations and accusations that she was riding on the back of her personal friendship with Tsvangirai and his late wife Susan.

“I worked tirelessly preparing women for participation in the March 2008 elections,” she said. “The women performed fairly well. Nonetheless, it was a challenge to work with women because I was used to dealing with men in my life,” said Makone.

Prior to political activism, Makone worked for Chibuku Breweries, Cairns Foods and Sterling Winthrop where she held managerial posts, but quit her jobs “to take care of my two daughters”.

Makone admits to doing little during her time as Public Works minister except facilitating the re-opening of the National Sports Stadium “because of financial constraints”.

Brian Chitemba

Mguquka appointed ZSE committee chair

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27389-mguquka-appointed-zse-committee-chair.html

Thursday, 22 July 2010

NEW Africa Securities managing director Ndodana Mguquka has been appointed chairman of ZSE’s management committee. He takes over from Bart Mswaka of Renaissance Securities. Mswaka now deputises Mguquka.

The purpose of the committee is to enforce listing requirements on all listed companies, manage and control the affairs of the ZSE, settle disputes between members and examine all applications for listing on the bourse. The ZSE committee among other functions also has the power to grant, review suspend or terminate listings subject to the listings requirements.

Mguquka yesterday said he was geared to revive the ZSE by attracting big players on the market.

He said - “As the new executive committee, we are looking forward to reviving the ZSE. At the moment there are a lot of issues that need to be sorted out, particularly the quality of our listings. We need to improve the quality of our listings to attract foreign and local investment.

“Currently our capitalisation is just above US$ 3 billion and is falling but if we attract big companies to list, especially in the mining and banking sectors, we can grow the size of the market up to levels of US$ 10 billion.”

Finance minister Tendai Biti last week said in his Mid-Term Fiscal Policy review statement that the ZSE has largely been “low mainly due to market illiquidity in the first half of the year”.

“Foreign participation has remained subdued with investments mainly confined to portfolio restructurings. Corporate results have also failed to uplift the equity market as most corporates are still undercapitalised and also suffering from subdued demand,” Biti said.

“Of the companies that sought recapitalisation mainly through rights issues, shareholder support averaged 50% with the balance being taken over by the underwriters.”

The industrial index which started the year at a high of 156,52 had dropped to 127,46 by June 2010, whilst the mining index fell from an opening of 209,8 to 143,08.

Similarly, market capitalisation fell from US$ 3,97 billion in January 2010 to US$ 3,19 billion by end of June 2010.

The poor performance is as a result of investors pulling out their investments reflecting depressed investors’ sentiment over perceived financial risks, especially following the gazetting of the Indigenisation Regulations in January.

In particular, foreign investors’ contribution to market turnover fell from between 40-50% to an average 20% per month.

Meanwhile, stocks rose marginally on the ZSE this week following Biti’s statement.

The industrial index rose to 123,67 from last Wednesday’s 121,29 points. Mobile phone operator Econet topped the movers with a 3,01 cents gain to 468 cents with diversified group, TA Holdings up two cents to 27 cents. Dairibord, Edgars and Fidelity Life were each 0,50 cents solid at 7,70 cents, four cents and 3,50 cents respectively.

Conglomerate CFI dropped 2,50 cents to close at 15,50 cents and hotel group African Sun lost 0,30 cents to close at 2,50 cents.

Barclays shed 0,20 cents to eight cents. Cairns went down 0,09 cents to close at 2,12 cents and Hunyani eased 0,05 cents to trade at three cents.

The mining index surged to 132,98 points from 123,63 points recorded last Wednesday. This came on the back of buoyant performance in Bindura Nickel which closed at nine cents and Hwange was slightly up at 20,01 cents. Falgold and Riozim were unchanged at three cents and 230 cents.

Benard Mpofu

Mugabe jingles reminiscent of Africa’s worst dictators

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27383-mugabe-jingles-reminiscent-of-africas-worst-dictators.html

Thursday, 22 July 2010

LEADERS, particularly those whose source of power is disputed, have been known to rely on intimidation, violence and selective application of the law to crush dissent.

But claims to invincibility have also been oft-used techniques by dictators to entrench their authority.

Mobutu Sese Seko, the tyrant who ruled the former Belgian Congo, later called Zaire, for 32 years between 1965 and 1997, forced his personality cult down every citizen’s throat, so much that every city and village dweller developed a personal familiarity with his image.

A military commander-in-chief before staging a coup in 1965, Mobutu, desperate to appear ubiquitous, ordered thousands of his pictures printed and distributed to every part of the country.

Villagers, even those in the remotest parts of the vast country, felt his power through these portraits in the aftermath of a 1965 coup that saw him take power as president.

The country’s state-controlled television network was obliged to begin each broadcast with a vision of Mobutu descending from cloud-filled heavens, an image way ahead of its time given that this was before the days of savvy video editing.

Idi Amin, the buffoon of a military dictator who ran Uganda from 1971 to 1979 and was known to butcher critics, had his own jazzy way of winning the hearts and minds of ordinary citizens. The Suicide Mechanised Brigade Jazz Band, an outfit that included a dance troupe and occasionally led by Amin himself in dance and song, played at parties praising the eccentric leader. Radio Uganda was obliged to read out his full title as - “His Excellency President for Life, Field Marshal Al Hadji Doctor Idi Amin Dada, VC, DSO, MC, CBE”.

During the same period, in 1976, President Robert Mugabe crossed into Mozambique to take over leadership of Zanu, whose freedom fighters were fighting a bloody war from the Mozambican front against white minority rule. Anxious to win support from the combatants ahead of deposed leader Ndabaningi Sithole, Mugabe incorporated his name into a number of songs that praised his leadership.

Song became a powerful instrument in Mugabe’s drive to ingratiate himself with liberation war fighters, a good number who were sceptical of his war credentials.

Three decades later, and this time in a fashion similar to Amin, Mugabe has turned to crude propaganda to prop up his waning image.

Zimbabwe’s state radio began announcing Mugabe’s expanded title in full after he lost the presidential election first round vote in March 2008 and was forced into a coalition government.

In a desperate bid to show how Mugabe is still in charge, state-controlled print and broadcast media have been referring to Mugabe as “Head of state and government and commander-in-chief of the defence forces”.

On Tuesday Tsvangirai was forced to complain in cabinet about the resurfacing of jingles on state television that he says are demeaning to the coalition government. Lyrics to the jingles and songs, repeated after every 30 minutes on state radio, show a desperation to return to the old order -

Panumber one tarisa pana aniko ?.

(Who is in charge?)

Pana VaMugabe (It is President Mugabe)

Panumber two tarisa pana aniko ?.

(Who is the second most powerful?)

Pana Mai Mujuru. (It is Vice President Mujuru)

Pechitatu tarisa pana aniko ?.

(Who is the third most powerful?)

Pana VaNkomo (It is John Nkomo)

Chimbotongai Makadaro. (Continue ruling in that hierarchy),” go the lyrics, which, on video are punctuated by lurid, sexually suggestive dance moves.

Analysts say the jingles, which are still playing despite a reported order by Cabinet to ban them following Tsvangirai’s complaint, are more personality than ideologically driven.

Trevor Maisiri, executive director of the African Reform Institute, said it was not surprising that Zanu PF was using the state-media to build hype around Mugabe’s personality given that he has announced his desire to contest future elections. Mugabe’s Zanu PF party this week said it was ready to contest a general election next year, setting the tone for a gruelling election period.

“What we must realise is that we are already in the election campaign period. If you closely look at the Zanu-PF internal politics, you will realise that their centre is not as coherent as it has been in the past elections,” said Maisiri. “The party is faced with a multiplicity of challenges and cracks.”

Until the formation of the MDC, Zanu PF was the only dominant political party in the country.

Analysts said the praise-singing jingles had become necessary for Zanu PF to stamp its authority in the face of strong contention for power.

“The jingles are meant to divert the nation from apparent weaknesses and they are also to convince and demonstrate to their own supporters that they still have the clout and power,” Maisiri added.

“In leadership they actually say that the moment you remind people that you are their leader, that is the first sign of a lost leadership role. How many times do we remind our children that we are their fathers ?.

The moment you do that you exhibit traits of illegitimate parenthood.”

Takura Zhangazha, a political commentator, said Zanu PF needed to remind people of Mugabe’s invincibility in the face of growing support for the MDC in previously pro-Mugabe communities such as the rural areas.

“It is literally to assuage their supporters’ egos and to make the Zanu-PF department of information look like it is doing a good job,” said Zhangazha. “It is unnecessary to remind those that you lead of your leadership in democratic societies. Zanu PF is doing this mainly for propaganda purposes and to place the MDC on the back foot by creating a potential outstanding issue and by pre-empting the debate on the election.”

Another analyst, John Kanokanga who chairs the Zimbabwe Movement for Peace, Reconciliation and Unity, a pressure group, said viewing the jingles as an isolated case would be to miss the point.

Kanokanga said in a normal situation, the jingles would not have created uproar if the coalition government had managed to ease boiling tensions between supporters of different political parties.

“What is at stake are the next elections and what we need to have is an environment which allows those who lose an election to leave office with dignity and not face a ‘firing squad’ because in such an environment, people would use every trick to retain power,” said Kanokanga.

Zhangazha said the abuse of the state-controlled media made the case for the opening up of airwaves to private players even more urgent.

“The only lesson that we can draw from this is that the Zimbabwe Broadcasting Holdings (ZBH) Commercialisation Act needs to be repealed and in the process establish an Independent Public Broadcasting Services Act that guarantees the independence of ZBH and other private broadcasters

who should come on board,” said Zhangazha.

Leonard Makombe

Five years on Murambatsvina victims struggle

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/local/27367-five-years-on-murambatsvina-victims-struggle.html

Thursday, 22 July 2010

FOR some of the poorest people in Zimbabwe important dates often pass unnoticed. July 22 is a critical date for a fifth of Zimbabwe’s population who were affected by Operation Murambatsvina.

On that day, five years ago, the UN released a report chronicling the devastation inflicted on about 2,4 million Zimbabweans during Operation Murambatsvina.

The report spelt out recommendations, which if fully implemented, could have addressed most of the grave problems facing people living in Operation Garikai/Hlalani Kuhle settlements today.

In contrast to government’s publicly stated intention under Operation Garikai - that is to re-house some of those affected by the evictions - the programme has proved woefully inadequate.

Walking around one of Harare’s Garikai settlements today one sees a handful of structures constructed under Operation Garikai against the larger backdrop of plastic shacks. Those allocated these houses would appear to be the lucky ones, but closer inspection reveals their situation is no better - the Garikai houses lack doors, windows, floors, water and sanitation. They are simply uninhabitable.

Operation Garikayi was set up on a premise that the government would provide plots upon which people could build their own homes. A few vulnerable people would be assisted with housing.

But if Operation Murambatsvina has come to symbolise the shattered lives of some of Zimbabwe’s most vulnerable people, the structures half built under Operation Garikai epitomise the broken promises in the aftermath of the destruction.

Anna Tibaijuka, the UN Special Envoy on Human Settlements Issues in Zimbabwe, who wrote the original report in 2005 said - “Operation Garikai gives the impression of being hastily put together. It does not appear to have accounted for the immediate shelter needs of people who have been rendered homeless at the onset of winter.”

In fact, for the victims at Hopley Farm, Hatcliffe Farm, Caledonia Farm and possibly many other places dotted around the country, Operation Garikai created false hope.

In their fifth winter post-Murambatsvina, rather than moving towards a “better life”, residents feel increasingly hopeless, desperate and abandoned. Even the creation of the unity government in February 2009 has not brought any tangible change in their lives.

Amnesty International visited Zimbabwe in May and June 2010 to assess the situation for residents in settlements at Hopley Farm and Hatcliffe Extension, both settlements set up Operation Garikai.

Hopley Farm settlement presents one of the most heart-rending accounts of life in one of Zimbabwe’s post- Murambatsvina settlements. Amnesty International delegates were confronted with disturbingly common reports of newborn deaths.

Women at Hopley live in torn plastic shacks and are forced to give birth at home in unhygienic conditions and without skilled birth attendants. In some of the worst cases women described the ordeal of giving birth alone - endangering the lives of both mother and child.

The loss of a child is every mother’s worst nightmare, but at Hopley there is an almost fatalistic acceptance - “They swallowed the wind,” they say of their babies’ premature deaths. Perhaps this explanation is easier to accept than the fact that their babies died because they have been effectively abandoned by a government that is failing in its duty to provide essential services to its most vulnerable citizens.

Opportunities to escape the harsh economic realities at Hopley and other settlements are virtually non-existent. Fetching firewood from neighbouring farms is one of the few options available to women and girls but it is arduous work for meagre rewards.

The long distances involved in reaching the farms are such that it is not unusual to set out at 4am and return at 10pm. Rather than assuring women a small income, they may be arrested and fined for trespassing, returning home even poorer than they started out. Others endure worse experiences, including rape.

Tibaijuka reported that about 220 000 children of school going age were directly affected by Operation Murambatsvina. The UN reported that school enrolment may have dropped by about 25%.

This year Amnesty International witnessed community volunteers desperately trying to provide some form of education for their children. They had no books, stationery, or classrooms.

At Hopley 300 children of primary school ages were crammed into a tent while those who could not squeeze in sat outside writing in the sand with their fingers.

This is in a country that the UNDP says has the highest literacy level in sub-Saharan Africa.

Despite promises of a “better life” the situation of the victims of Operation Murambatsvina living in the Garikai settlements is infinitely worse than they might have imagined five years ago.

The mass forced evictions were a human tragedy on an epic scale and attracted international condemnation. Five years on the despair and desperation remains for the victims.

Basic essential services are denied and rights are violated daily.

This cannot be allowed to go on unchallenged. The unity government should confront this man made disaster and restore the dignity of the survivors of Operation Murambatsvina before the situation gets totally out of control.

lSimeon Mawanza is Amnesty International’s Zimbabwe researcher. He is based in London but visited Zimbabwe in May and June of this year.

By Simeon Mawanza

Telecel dogfight escalates

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/business/27341-telecel-dogfight-escalates.html

Thursday, 22 July 2010

A BATTLE to control Telecel Zimbabwe escalated this week after Empowerment Corporation (EC), owners of the firm’s licence, pushed for the cancellation of the company’s operating licence and the ouster of two of its notable directors.

EC, an empowerment group controlled by President Robert Mugabe’s nephew, Leo, is pushing for the ouster of fugitive board chairperson James Makamba and his deputy, Jane Mutasa from its ranks.

Makamba and Mutasa, who has been acting chairperson after the former fled the country facing foreign currency externalisation charges, are to be replaced by Mugabe, Shephard Kapota and Moffat Marashwa, according to the “shareholders’ agreement and the articles of association of the company,” the investment vehicle said in a statement.

The latest development in EC lends credence to speculation that Mugabe has been eyeing control of the country’s second largest telecommunications company.

But other shareholders in Telecel say Mugabe failed to pay for Telecel shares after his cheques bounced on several occasions, a charge he does not deny.

EC’s ouster of Makamba and Mutasa from the board is widely seen as an attempt to pave way for the removal of Makamba and Mutasa from the Telecel board.

EC is a company wholly owned by the Zimbabwe Wealth Creation and Empowerment Council (ZWCEC) controlling 40% shareholding in the telecommunications company through a number of investment vehicles founded by various empowerment groups and private businesses.

ZWCEC wrote to Transport and Communication minister Nicholas Goche requesting the cancellation of the licence issued 14 years ago, so that it would be reissued to the investment vehicle.

In a letter dated May 28 to, ZWCEC chairperson Silas Hungwe appealed to the ministry which administers the Posts and Telecommunications Regulations Act to cancel Telecel Zimbabwe’s licence.

“ZWCEC will then re-establish the current distorted joint venture between Telecel International and itself on 60% and 40% shareholding structure respectively as it was at inception,” Hungwe said.

“At present, ZWCEC holds 40% shares in Telecel Zimbabwe and Telecel International 60% because James Makamba sold to them 20% shares illegally which belonged to ZWCEC.”

Hungwe said the licence should be cancelled because the project had “failed to comply with formation objectives, that is, empowering the majority of Zimbabweans and is operating against the Government Indigenisation and Empowerment Act”.

The holding of an AGM had been resisted by Telecel, but in a letter addressed to the company secretary on Wednesday last week, Angeline Vere, Hungwe said that Empowerment Corporation was a “significant shareholder in Telecel Zimbabwe and thus has a right to call for the said meeting in terms of the Companies Act and to have it at Telecel Premises”.

Makamba and Mutasa could not be reached for comment on the latest developments at the time of going to press.

Goche yesterday said he was yet to get Hungwe’s letter.

The EC said they wanted the AGM, among other issues, to discuss the de-specification of Makamba and the role he played when he was specified.

It also wanted to “exercise its pre-emptive rights on the 60% shareholding “now” before another attempt to illegally sell them to a third party.”

This comes after Orascom, the holding company for Telecel International, attempted to sell the company to MTN. Had the deal been completed, the shareholding structure in the local telecommunication company would be restructured.

Empowerment Corporation is also demanding a further 11% stake from Telecel International to shore up its shareholding to around 51% as a way of regularising the shareholding structure in line with the Indigenisation and Economic Empowerment Regulations.

The shareholding structure of EC is a puzzle as current, past and potential shareholders claim that they still hold stakes in the investment vehicle which was awarded a licence.

It remains unclear whether shareholders were required to pay for the stake or not as some argue that it was a political licence which was acquired specifically to empower marginalised groups while others, have argued that they paid for the stake.

Mugabe confessed in an earlier interview with businessdigest that he did not pay for his shareholding arguing it “was not necessary to do so”.

At its inception, each of the following, Zimbabwe Farmers’ Union, Affirmative Action Group, Zimbabwe National Liberation War Veterans Association, Indigenous Business Women’s Organisation and Small Scale Miners Association of Zimbabwe, had a 9% stake and the Integrated Engineering Group, owned by Mugabe, owned 10%.

Makamba’s Kestrel Corporation owned 15%. Makamba and Mugabe’s companies were brought in as technical partners.

But sources in EC say Zimbabwe Farmers’ Union, Affirmative Action Group, and Zimbabwe National Liberation War Veterans Association sold their shares to Makamba while Mugabe never paid a “cent.”

Leonard Makombe

Genesis director Chibaya quits

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/business/27337-genesis-director-chibaya-quits.html

Thursday, 22 July 2010

GENESIS Investment Bank Managing Director Fulton Chibaya has resigned from the bank, businessdigest has established.

His resignation comes at a time when the bank was battling to meet statutory minimum capital requirements.

Contacted for comment on Monday, Chibaya confirmed he had left the bank but denied being pushed out.

“I resigned from the bank to pursue other interests. If you want more information you can talk to the chairman,” said Chibaya.

Acting head of marketing Samere Mugabe, told businessdigest that Chibaya had left the bank but there was nothing sinister about the development.

“He (Chibaya) left the bank to pursue other interests on July 9. Bright Mayere is the acting CEO at the moment,” said Mugabe.

Asked why the bank had not advised the market, Mugabe said an official statement would be made “soon”.

Chibaya left last week at a time when the merchant bank failed to meet statutory minimum capital requirements of US$ 10 million as required by the Reserve Bank of Zimbabwe.

In the past two years, senior executives have left the bank. Former Head of Treasury, Daniel Gwira left for CFX Bank, former Head of Marketing, Gerald Chinogara left for Afre while former Head of IT Kingston Kanyile also left the bank.

Genesis Bank, a subsidiary of Genesis Financial Holdings Ltd, was set to commence commercial banking operations after it was granted a licence by the Reserve Bank two years ago.

Genesis Financial Holdings is also a subsidiary of diversified insurance concern Zimre Holdings Ltd. Genesis Investment Bank was initially established as an accepting house.

ZHL CEO Albert Nduna was quoted in the media saying; “We are in the process of acquiring US$ 12, 5 million to meet Reserve Bank of Zimbabwe’s minimum capital requirements before we can start operations.”

“We are hoping to get some of the funds from our regional operations since they are performing well,” he added.

Nduna said the group was also looking for a suitable site to build the bank’s premises. The accepting house currently operates from Zimre centre in the capital.

If Genesis Investment Bank is transformed into a commercial bank, it will join 15 other institutions on the market.

Zimbabwe has 15 commercial banks, six merchant banks and four building societies.

Due to financial problems, banks have been struggling to meet capital adequacy requirements even after the central bank came up with a phased plan. By September 30 last year they were supposed to have paid half the amount and the balance by March 31.

According to the Reserve Bank, as at May 31 2010, 15 out of 25 banking institutions had complied with paid-up capital requirements which are US$ 12, 5 million for commercial banks and US$ 10 million for merchant banks and building societies. Asset management companies are required to have a capitalization of US$ 500 000.

Currently, many banks are struggling for survival due to various problems dogging them in the market. Some of the problems facing the banking sector include liquidity constraints, volatility of deposits, cash-based transactions due to lack of alternative means of payment, high overhead costs against a background of low income generation capacity, lack of lines of credit and the failure of the central bank to act as a lender of last resort due to bankruptcy.

Liquidity problems are mainly caused by poor export performance and lack of international capital inflows. Lack of lines of credit and donor support also compound the problem.

The Reserve Bank’s inability to offer lender-of-last-resort facilities has exacerbated the liquidity crisis in the economy and the banking sector in particular. As a result of this, there is no active inter-bank market where banks, which have no acceptable collateral instruments, can borrow to cover their liquidity gaps.

Paul Nyakazeya

RBZ set to name capital requirement defaulters

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/business/27335-rbz-set-to-name-capital-requirement-defaulters.html

Thursday, 22 July 2010

RESERVE Bank governor Gideon Gono is soon expected to name financial services institutions that failed to meet the minimum capital requirements as some players restructure to remain afloat.

Gono’s Mid-Year Monetary Policy Statement will focus on the status of the banking sector after the central bank failed to issue statement following the expiry of March 31 deadline for minimum capital requirements of the sector.

The varying capital requirements, now in United States dollars which came after last year’s adoption of the multi currency system have resulted in some institutions disposing “non-core” business while others were taken over by more financial stable partners.

Businessdigest has over the past three weeks reported shareholder changes in asset management companies that restructured after the March deadline.

When contacted for comment on how many financial services institutions had complied with statutory capital requirements, central bank spokesperson Kumbirai Nhongo said - “The status of the banking sector and the regulation of asset management companies are issues to be discussed by the Governor of the Reserve Bank of Zimbabwe, Dr Gideon Gono in his forthcoming Mid-Year Monetary Policy Statement.”

“The central bank is therefore not able to comment on these issues now, as to do so would pre-empt the policy statement,” he said.

The central bank has so far cancelled an operating licence for Legend Asset Management after it failed to meet the first phase of the minimum capital requirements. By September 30 last year asset management firms were expected to meet the US$ 250 000 threshold.

In April MBCA Holdings Group disposed of 96,14% interest it held to a consortium of investors led by former Premier Finance Group CEO Exodus Makumbe.

Meanwhile, the Securities Commission of Zimbabwe (SCZ) says the US$ 500 000 capital requirements set by the central bank has resulted in asset management companies having a “keen interest” in being regulated by the commission.

Currently the central bank is in charge of regulating the capital investment companies until negotiations to transfer this regulatory role to the SCZ are finalised. This, according to Chirume, is in line with the Securities Commission Act.

“We are very aware that asset management companies are very keen to come to us. Asset management is a tough game. If new players want to come in, I wish them good luck.” said SCZ CEO Alban Chirume on Monday.

“They (asset managers) said they were looking for a regulator who understands them. They also said they are looking for regulatory arbitrage - a regulator that would make things easier for them. Because they are not deposit taking institutions, they were taking a lower risk in relation to their capital requirements.”

Bernard Mpofu

Mortgage resurgence no joy for workers

2010 07 23

The Zimbabwe Independent

http://www.theindependent.co.zw/business/27327-mortgage-resurgence-no-joy-for-workers-.html

Thursday, 22 July 2010

THE Construction Industry Federation of Zimbabwe (Cifoz) says the resurgence of mortgage finance could be a drop in the ocean for the troubled industry reeling from underfunding despite buoyant government projections.

Businessdigest understands that local building societies now offering up to US$ 100 000 in mortgage finance are on a recovery path since last year’s adoption of multi- currencies.

But the terms and conditions of this facility could be restrictive for many workers currently earning wages far below the poverty datum line.

Cifoz president Daniel Garwe on Monday said the construction industry, which at peak contributed 8,5% to the Gross Domestic Product, was yet to benefit from the emerging mortgage finance being offered by financial services institutions.

Mortgage lending became redundant 10 years ago at the start of a decade-long economic recession.

Garwe said government, which traditionally funds the bulk of major construction projects in the country, failed to float any significant tenders in the first six months of the year owing to lack of funds. The state suspended the completion of all public projects in 2008 at the height of hyperinflation and this has resulted in the construction industry operating at an average 15% capacity.

“The two-year mortgages being offered at the moment at interest rates of up to 22% are too high. The maximum one can get is US$ 100 000 which is only enough to buy a concrete mixer. In that regard the Mid Year Fiscal Policy Review was a mere ritual because it did not address our concerns,” he said.

“There is no clear path on how mortgage finance is being financed. Building societies have not given us clear direction. The absence of cranes hovering around cities and towns automatically means that the economy is still down.”

With revenue constraints under the prevailing cash budgeting framework, no major projects have been commissioned since the formation of the inclusive government. Pension funds that have in the past funded construction projects are still recovering from the ravages of hyperinflation which wiped their savings base. For Cifoz, crafting enabling laws for Public-Private Partnerships could be critical in attracting foreign investment in a sector currently dogged by lack of skilled labour and obsolete equipment.

Sam Ruturi, chairman of the Mortgage Banking School of Southern Africa, based in Harare, said the resurgence of mortgage lending could be a desperate attempt by building societies to grow business under the current economic conditions.

“The market is subdued. The bulk of mortgages that are being offered at the moment have got terms ranging from three months to two years which means that the borrower must be in a position to repay the mortgage loan or roll it over,” Ruturi said.

“But each time a loan is rolled over the borrower incurs an extra cost in the form of loan commitment fees. Sustainable mortgage lending does not function in that manner. It is a desperate attempt to utilise service deposits that are in existence at the moment whilst ensuring that depositors will fund the institutions as and when savers want to withdraw their money.”

At peak, savings which form the backbone of mortgage financing, contributed nearly 8% to the GDP when building societies offered 25- year mortgages.

Bernard Mpofu