Army officers seized over Mugabe 'coup plot'

The Telegraph

By Byron Dziva in Harare
Last Updated: 2:18am BST 14/06/2007

      Seven serving and former officers of the Zimbabwe army have been
charged with planning a coup d'etat against President Robert Mugabe.

      The men were arrested in stages, beginning on May 29, and appeared
twice in closed hearings at Harare magistrates' court earlier this month.

      Journalists and family members have been barred from the hearings and
the case has now been referred to the Harare high court, where the accused
are expected to apply for bail today.

      A police record of the arrests said that the officers were accused of
"treason" over a plot in which they aimed to overthrow Mr Mugabe and install
Emmerson Mnangagwa, the rural housing minister, in his place.

      The police statement accuses Albert Mugove Matapo, 40, of recruiting
six others "who conspired to plot a coup to overthrow the Zimbabwe
government".

      Mr Matapo wanted to "recruit as many soldiers as possible to take over
the government and all camps and be in control of the nation after which he
will announce to the nation that he was in control of government and would
invite Minister Mnangagwa and service chiefs to form a government", the
police record said.

      Another former army officer, Albert Rugowe, is accused of conspiring
with his co-accused and recruiting members of the army, the air force and
the police "to whom he gave some tasks in preparation of a coup".

      Others named are serving officers, among them Capt Shepherd Maromo and
Olivine Morale, whose rank and age have not yet been established.

      There have been rumours of coup plots in Harare for months as Mr
Mugabe, 82, has faced growing criticism for a spiralling economic crisis and
crackdowns on opposition activists.

      This is the first case in which soldiers have been arrested and if
proved, would constitute the first credible coup attempt in Mr Mugabe's
27-year rule.

      But there are suspicions that rather than being a genuine coup plot,
the case may have been trumped up by rival members of Mr Mugabe's Zanu-PF
party as they jostle for position to succeed him, should he ever retire.

      Beatrice Mtetwa, the president of the Zimbabwe Law Society, said that
she had not heard about the case. "I am surprised that we have not heard
about it if the accused have appeared at the magistrates' court."

      Sidney Sekeramayi, the defence minister, did not respond to phone
inquiries about the case.

      Sources at Zimbabwe's special forces barracks, near Harare
International Airport, where the seven are being held, said that they had
all been subjected to long periods of torture.

      The lower house of Zimbabwe's parliament passed a Bill yesterday
allowing the government to monitor phones, mail and the internet to protect
national security.

      Opposition members said that they feared the Bill would pave the way
for Mr Mugabe's government to curtail freedom of speech and breach privacy.

      The Interception of Communications Bill passed the lower house without
amendments and will now be sent to the upper house, where it is expected to
face little opposition. Mr Mugabe's party has a majority in both houses.

      Chris Mushohwe, the transport and communications minister, said that
the Bill was necessary to combat criminal activities that could threaten
national security.

      Similar legislation existed in the United States, Britain, Canada and
South Africa, he said.

The battle of Zimbabwe

Pittsburgh Post-Gazette

Michael Gerson
A nation is dying, its leader a tyrant, its neighbors indifferent
Thursday, June 14, 2007

WASHINGTON - When I talked earlier this week with David Coltart, a
Zimbabwean member of parliament and human rights lawyer, his office in
Bulawayo had been without power for five hours. The central business
district of Zimbabwe's second-largest city, he said, was "a ghost town,"
with "hardly anyone on the streets" and "signs everywhere of total economic
collapse."

--------------------------------------------------------------------------

      Michael Gerson is a syndicated columnist for the Washington Post
(michaelgerson@cfr.org).

--------------------------------------------------------------------------

Four days previously the price for a liter of gasoline had been 55,000
Zimbabwean dollars; that morning gas stations were advertising 85,000
dollars. Inflation, by conservative estimates, gallops at 3,700 percent.

Perhaps 31/2 million people -- about one-fourth of the population -- have
left the country, in a massive drain of youth and ambition. "Land reform"
has been a land grab for ruling party elites, who are proving that
intimidation and brutality are powerless to make the corn grow. Orphans,
many with the signs of childhood malnutrition, have begun coming to Mr.
Coltart's parliamentary office for help.

Zimbabweans have discovered with horror that their founding father, Robert
Mugabe, is an abusive parent, as if George Washington had grown mad with
power, expropriated Monticello and given Jefferson a good, instructive
beating.

With elections for president and parliament set for next year, Mr. Mugabe
can hardly run on his record. So he has kicked off the campaign season by
attempting to destroy his opposition and rig the election in his favor. In
early March, his police crushed a protest rally and began arresting and
torturing political opponents. In response to international criticism, Mr.
Mugabe coolly replied, "We hope they have learned their lesson. If they have
not, then they will get similar treatment." Constitutional changes are
moving forward that will allow Mr. Mugabe to handpick his successor. Next
week parliament will debate measures that permit the interception of e-mails
and the suppression of democratic groups, with the excuse of fighting
"foreign terrorism."

Mr. Mugabe, having spent a lifetime consuming his country, now seems
determined to drink it to the dregs.

For years, nations in the region did nothing in response, and called their
silence "quiet diplomacy." More recently, those efforts have progressed from
nonexistent to inadequate. After the recent round of beatings and arrests, a
summit of the Southern African Development Community -- a 14-country
regional organization -- appointed South African President Thabo Mbeki to
mediate the political conflict in Zimbabwe. Yet the summit refused to
clearly criticize the regime's human rights violations. "We got full
backing," boasted Mr. Mugabe, "not even one criticized our actions."

South African diplomats tell American officials that there is no serious
alternative to the regime -- that the opposition is weak and divided. But
perhaps that opposition is dispirited because in March and April of this
year, 600 of its leaders were arrested or abducted, 300 hospitalized and
three killed. Any hope of "mediation" in this atmosphere is a sham. How do
you sit down at the negotiating table when one side is using a truncheon on
the other?

The precondition for mediation is an end to beatings and torture on Mr.
Mugabe's part -- and the South Africans should insist on it. They should
also start considering more muscular options if Mr. Mugabe continues on his
current path. South Africa has tremendous leverage if it chooses to use it.
A cutoff of energy, fuel and trade could end Mr. Mugabe's regime in a matter
of days.

The hesitance of many democracies to confidently promote democracy is one of
the great frustrations of recent years. The South Korean government does its
best to downplay massive human rights abuses in the North. India and Japan
do business with the brutal regime in Burma. It would be progress if South
African diplomats even raised the issue of human rights in Zimbabwe and
began showing the kind of moral clarity that once benefited their own cause.

In Zimbabwe, a collapsing economy, malnutrition, high rates of disease and a
failing health care system have produced some of the lowest life
expectancies in the world -- 34 years for women and 37 years for men.

So Mr. Mugabe, at age 83, has achieved a rare distinction in the history of
tyranny -- living twice as long as his citizens are expected to live.

According to Mr. Coltart, the most vivid image of Zimbabwe is found in the
cemeteries, which "are filled to overflowing." "There are burials at any
time of the day," he told me, "row after row of fresh dirt, with no
headstones, because the poor can't afford them ... It is the way," he said,
"that I imagine the Battle of the Somme."

That terrible battle during World War I lasted 142 days. Zimbabwe has
suffered for years -- and the burials go on.

African nations agree elephant deal at U.N. talks

Reuters

Thu 14 Jun 2007, 5:07 GMT

THE HAGUE, June 14 (Reuters) - African nations agreed a deal on Thursday to
extend a 1989 ivory export ban for nine years to safeguard elephants after
one-off sales from stockpiles by southern African states, delegates said.

The accord, reached overnight at U.N. wildlife talks, was a compromise
between countries led by Kenya and Mali who wanted a total ban, and
Botswana, Namibia, Zimbabwe and South Africa who favoured limited sales.

Julius Kipng'etich, head of the Kenya Wildlife Service who led the Kenyan
talks, said the deal was a "proud moment for the continent" after days of
wrangling.

Mugabe's tinkering seen as a ploy to delay progress

The Star

June 14, 2007 Edition 1

Reuters

The Zimbabwean government's plan to change the constitution ahead of 2008
elections undermines efforts to broker an end to political turmoil,
according to the country's main opposition leader.

President Robert Mugabe's government has proposed a bill that would pave the
way for joint presidential and parliamentary polls next year and amend the
rules for electing a new president if the post becomes vacant before an
election.

The bill is expected to be debated in parliament next month.

Morgan Tsvangirai, the leader of the Movement for Democratic Change (MDC),
said yesterday the amendments were "pre-emptive and contemptuous" of
President Thabo Mbeki's bid to bring the MDC and the ruling Zanu-PF to the
bargaining table.

Mbeki took on the mediation role in March at the request of the Southern
African Development Community, which met at a summit to discuss the crisis
in Zimbabwe.

"The message that Zanu-PF is sending out is loud and clear. It is oblivious
and blind to the SADC negotiations," Tsvangirai told journalists in Harare.
He noted that the MDC and the ruling party had not agreed on an agenda for
the talks.

"It is simply not ready for genuine dialogue," he said, adding that the MDC
would continue to press for dialogue with Zanu-PF but would also look at
other options to press Mugabe's government to undertake reforms.

Part of the constitutional changes include giving powers to parliament to
choose a new president should the incumbent die, resign or be unable to
serve a full term. Currently, a vote should be held within 90 days of a
president leaving office.

Critics say the changes would allow Zanu-PF, which dominates parliament, to
pick the president.

The lower house of parliament also would be expanded to 210 members from
150.

Tsvangirai, who was among dozens of opposition members arrested and beaten
in a violent government crackdown earlier this year, repeated calls for a
new constitution to guarantee free and fair elections next year.

He also urged SADC leaders to continue pressuring Mugabe to change his ways.

The 83-year-old leader has rejected calls for a new constitution since his
government lost a national referendum on a draft treaty in 2000.

 The cost of living for an average urban family in Zimbabwe rose by 66% last
month, the country's consumer watchdog said in a report yesterday.

Council concludes discussion on right to food, toxic and dangerous waster, adequate housing and extreme poverty

Suspected coup plotters in court

FinGaz

Clemence Manyukwe Staff Reporter
ZANU PF bigwig implicated
A GROUP of former military officials has been arrested for allegedly
plotting a coup to oust President Robert Mugabe from power in a closely
guarded development that could embroil an unnamed senior ZANU PF official
who is said to be the mastermind of the failed rebellion.

The group's defence counsel, Charles Warara, of Warara and Associates,
confirmed in an interview with The Financial Gazette yesterday that he was
representing the alleged plotters although he could not say how many they
are.
"Yes, we can confirm that we are handling that matter," said Warara. "We are
making every effort to secure their freedom," he added.
In a sensational case shrouded in secrecy, the alleged coup plotters have
appeared in court twice and have been denied bail on each occasion.
Their legal counsel revealed yesterday that they have denied planning to
overthrow the government, saying they only intended to form a political
party that would take power through the ballot.
The court hearings are being held in camera.
Warara said he was in the process of investigating claims by his clients
that they had been tortured in police cells.
"We are trying to verify these claims that they have made in court. As you
know, it may either be true or not. We are in the process of trying to
protect their interests," Warara said.
When asked if the accused persons were soldiers, as widely speculated,
Warara said: "No, but some of them have a background in the army." He
declined to comment further.
State Security Minister Didymus Mutasa said he was not aware of the alleged
plot when contacted for comment yesterday, referring questions to Defence
Minister Sidney Sekeramayi, who was said to be out of the country.
Godwin Matanga, the deputy police commissioner, also professed ignorance of
the alleged conspiracy. He said he has been out of the office for the whole
month.
The Financial Gazette could not confirm speculation that a number of serving
officers had also been arrested in connection with the alleged coup plot.
Names of the plotters and the ZANU PF bigwig who is supposed to have
recruited them are being withheld for security reasons, the lawyer said.
The suspected coup plotters are said to be detained at Chikurubi Maximum
Security Prison, where they have been denied visits by their families.
"We have turned away their families. Security has also been beefed up with
some members from the army and the CIO (Central Intelligence Organisation),"
a prison guard, who spoke on condition of anonymity, said yesterday.
The inclusion of a ruling party heavyweight among the suspects tends to
confirm speculation that the alleged conspiracy is one of the intrigues
surrounding the ZANU PF succession race.
The alleged involvement of the senior ZANU PF official in the plot could be
an indication of how nasty the factional fights in the ruling party have
become.
Last week, The Financial Gazette quoted a South African Foreign Affairs
Ministry report, which said a bitter tussle for power within ZANU PF posed a
threat to a bid by the Southern African Development Community to bring the
ruling party and the opposition to the negotiating table.
The report, tabled before the foreign affairs committee of the South African
parliament, suggested that the divisions had hamstrung ZANU PF from agreeing
on major policy issues.
"The ongoing infighting within ZANU PF, if not contained, would pose
challenges for mediation efforts . . . Energy within the party would be
consumed in efforts to come out on top in the succession battle," part of
the SA document reads.
"In the absence of party unity, it might be hard for the mediator to extract
firm commitments from the (ruling) party during the dialogue process," the
report said in reference to President Thabo Mbeki.
ZANU PF's own security department conceded in a report to the party's
conference last year that figures involved in the infighting "have largely
remained inactive, but continue to instigate counter productive activities,
which are motivated by their selfish and leadership ambitions."

A-G Gula-Ndebele throws in towel?

FinGaz

Njabulo Ncube Political Editor

SPECULATION was rife yesterday that Attorney General (A-G) Sobusa
Gula-Ndebele could be throwing in the towel because of differences with
Justice Minister Patrick Chinamasa, who is reportedly preparing new
legislation designed to give him direct control of government's legal
office.

Sources in the A-G's office said Gula-Ndebele, who did not return calls from
The Financial Gazette, informed senior officers who work under him on Monday
that he was going on leave with effect from yesterday (Wednesday) until July
15.
Since his appointment in 2004, Gula-Ndebele has clashed repeatedly with
Chinamasa.
Legal sources also say the government and the police have clashed with
Gula-Ndebele over his handling of cases involving opposition Movement for
Democratic Change (MDC) and other civic society leaders viewed as enemies of
the state.
The state recently dropped charges against 18 opposition supporters and
officials accused of petrol bombing police stations and other public
establishments.
To deal with what government regards as loopholes in the prosecution of such
suspects, plans are afoot to introduce new legislation to combine the post
of the attorney-general and that of Justice, Legal and Parliamentary Affairs
Minister.
Such legislation would also introduce the new post of prosecutor-general, a
position sources say Gula-Ndebele would find hard to accept, as he believes
it would be tantamount to a demotion.
"The draft bill has been prepared. It could be gazetted this Friday, or in
the next few weeks. It is unlikely the A-G is going to accept that," said a
source privy to the developments, speaking strictly on condition of
anonymity.
Clashes between Chinamasa and Gula-Ndebele have reportedly delayed the
tabling in parliament of the Attorney General Bill, which sought to give the
A-G's office greater independence from the minister.
A number of names are already being bandied about as Gula-Ndebele's possible
replacements, in the event that he turns down the proposed post of
prosecutor-general.
Among those being cited as possible candidates are Johannes Tomana, who has
represented the government in a number of cases and Gerald Mlotshwa, a young
but sharp legal mind who has previously represented State Security Minister
Didymus Mutasa.
In addition to clashes with government authorities, prosecutors in the A-G's
office have allegedly complained about Gula-Ndebele's leadership style and
the packing of the law department and the administration wing of his office
with personnel with a military background.
Gula-Ndebele is a war veteran and a former military man. He introduced a
controversial policy last year to send prosecutors to the Zimbabwe Staff
College.
Chinamasa did not return calls when The Financial Gazette phoned to seek
clarification over Gula-Ndebele's fate.

Metallon shelves London listing over Zim crisis

FinGaz

Dumisani Ndlela Business Editor

SOUTH Africa's Metallon Corporation, whose key assets are domiciled in
Zimbabwe, postponed a planned London listing last month because of
operational problems and power outages experienced at its local gold mines,
international media reports indicated yesterday.

Metallon had planned listing in London since 2004 but had failed do so after
encountering several obstacles, among them a lawsuit by local partners it
ditched in the process of a transaction to acquire its gold mining assets in
Zimbabwe from Lonmin.
The local partner, Stanmarker, owned by businessman Lloyd Hove, had been
awarded damages amounting to US$7,5 million plus interest by the High Court
for alleged breach of contract by Metallon but the South African company won
an appeal in the Supreme Court, which dismissed the award by the lower court
last month.
A preferred empowerment partner Metallon had chosen after buying local
mining assets, Manyame Consortium, was ditched after alleged failure to
raise cash for a 30 percent stake in the company.
The Manyame Consortium comprised of businessmen John Mkushi, Albert Nhau and
Mthuli Ncube who fled the country at the height of a banking crisis in 2004
and settled in South Africa where he is the director of the Wits Business
School.
"We haven't done anything on the IPO (Initial Public Offer) at all.
We're standing by, waiting
for consistent, sustainable production and foreign exchange supplies,"
Bloomberg quoted Mark Wellesley-Wood, Metallon's chief executive officer,
saying.
Metallon Zimbabwe is the biggest gold producer in the country in terms of
output.
Its five mines - How, Redwing, Shamva, Arcturus and Mazowe have a combined
output of at least 180 000 ounces of gold annually.
Wellesley-Wood, currently driving the group's ambitious listing plans, said
output was likely to slump to 100 000 ounces of gold for the year to
September, from 140 000 ounces achieved during the prior year.
A listing in London, through an IPO, is earmarked to raise cash to repair
and expand production to 200 000 ounces a year at the Zimbabwean mines.
Vancouver-based Canaccord Capital, a London-based law firm Norton Rose and
public relations firm Brunswick Group, are advising Metallon on the planned
listing.
The company's gold mines should ideally yield 175 000 ounces a year,
Wellesley-Wood said.
Zimbabwe's mining operations are grappling with an acute foreign currency
crisis and delayed payments for gold deliveries to Fidelity Printers and
Refineries, a central bank subsidiary with the exclusive right to mined gold
in the country.

Wheat stocks run out

FinGaz

Kumbirai Mafunda Senior Business Reporter

THE state-run Grain Marketing Board (GMB) has run out of wheat, prompting
fears of a crippling bread shortage.

Milling industry sources told The Financial Gazette this week that the grain
monopoly had failed to pay for two wheat consignments of which one had
docked in Beira, Mozambique and the other in South Africa.
The size of the consignments could not be immediately established.
However, industry officials say part of the wheat is stuck at the Mozambican
port of Beira because the state granary is yet to secure the foreign
currency needed to pay for the consignment.
Millers, who are now charging between $7,5 million and $9 million per tonne
of flour, have now been forced to shut down their milling plants.
"We have not received any allocations this week. Last week, our allocations
were halved. But this week, nothing has come through at all," said one
miller who refused to be identified as he is not authorised to speak on
behalf of the Millers Association of Zimbabwe.
GMB acting chief executive officer Samuel Muvuti was adamant yesterday that
all financial obligations had now been honoured.
"We sent our inspectors to check on the wheat stocks and they have already
come back. We should expect it (wheat) anytime from now," Muvuti said.
But bakers warned of a bread shortage because of worsening problems relating
to flour supplies.
Bakers that were still manufacturing bread using imported flour this week
increased the retail price of a loaf to between $24 000 and $30 000, from
about $15 000 last week.
The informal de-regulation of the price of bread, has helped improve the
quality of bread, its packaging and scaling, which had declined from the
required 700grams to 400grams per standard loaf.
It has also killed off the trading of bread on the parallel market, which
had triggered health concerns while fuelling prices beyond the reach of
many.
"Millers have indicated to us that flour supplies could be compromised
because of the wheat shortages," said one baker.
Zimbabwe, which has battled severe food shortages over the past seven years,
has been importing wheat from countries such as Argentina and South Africa
since late last year following poor yields in the previous farming season.
But the foreign currency crunch is limiting the country's ability to import
enough grain to meet demand. Zimbabwe needs more than 350 000 tonnes of
wheat for national consumption per year.
David Govere, the chief executive officer of Harambe Holdings, which owns
baking subsidiary Superbake, said GMB had reduced wheat allocations to the
milling industry from 6 000 tonnes to 3 000 tonnes per week before running
out of stocks.
He said the quickest way to resolve the crisis would be to arrange for
payment of the wheat held in bond at National Foods and then pay for one of
the external consignments.
"What is even more worrying is that the winter wheat forecasts now need to
be revised downwards because of the ZESA electricity power cuts, which have
made it difficult for the farmer to irrigate the crop," said Govere. "Those
that installed generators are finding it hard to source the fuel to do
irrigation continuously. Developments in wheat and maize seem to suggest
that this year will be the most trying year since independence in terms of
food security putting more pressure on the already rapidly devaluing
currency," he added.

Civic groups after Mbeki's ear

FinGaz

Njabulo Ncube Political Editor

CIVIC society groups, eager to play a role in the Southern African
Development Community (SADC) effort to break Zimbabwe's political impasse,
have set up a committee of seven organisations to engage South African
President Thabo Mbeki over the regional dialogue.

SADC appointed Mbeki in March to mediate in the Zimbabwean crisis. To date,
Mbeki has held closed-door discussions with representatives of the ruling
ZANU PF and both factions of the opposition Movement for Democratic Change
(MDC).
Civic society organisations are now pressing for a role in the process.
At a meeting on Tuesday, the Zimbabwe Election Support Network (ZESN) was
asked to chair the committee, which has been tasked to arrange a meeting
with Mbeki.
Other groups included in the proposed drive are Save Zimbabwe, the Centre
for Peace Initiatives in Africa (CPIA), the Ecumenical Peace Initiative
(EPI), the Law Society of Zimbabwe (LSZ), and the National Association of
Non-Governmental Organisations (NANGO).
"The committee will report to civil society from time to time. Most
organisations that sent representatives to the meeting stressed that while
they agreed to participate in the dialogue process, they would not stop
other programmes to open up democratic space, as the government of Zimbabwe
was not showing any sign of willingness to open up democratic space in
Zimbabwe," the organisations said in a joint statement to The Financial
Gazette.
The planning meeting was attended by representatives from Bulawayo Agenda,
CPIA, the National Constitutional Assembly, Crisis Coalition, ZESN, NGO
Human Rights Forum, Zimbabwe Lawyers for Human Rights, Media Institute of
Southern Africa, Zimbabwe National Students Union, the Catholic Commission
for Justice and Peace and NANGO.
"The civil society paper shall be presented in due course before President
Mbeki's preliminary report to SADC heads of states," reads part of the civic
society statement.
Mbeki, who was mandated by SADC to engage ZANU PF and MDC on the nagging
crisis in Zimbabwe, appointed a mediation team led by Sydney Mufumadi, South
Africa's housing minister.
Frank Chikane, director-general in the Presidency, deputy foreign affairs
minister Aziz Pahad, and legal advisor Mojanku Gumbi make up the team.
President Robert Mugabe has in turn appointed Justice and Parliamentary
Affairs Minister Patrick Chinamasa and Nicholas Goche, Minister of Public
Service, Labour and Social Welfare, to be his point men.
Mbeki has indicated that progress will have been made in the mediation
effort by the end of this month.
Critics' are, however, sceptical after ZANU PF snubbed a scheduled meeting
in Pretoria last month without giving any explanation.

Mohadi wrong: judge

FinGaz

Clemence Manyukwe Staff Reporter

HOME Affairs Minister Kembo Mohadi does not have the right to issue orders
to the courts directing them to deny suspects bail, a High Court judge has
ruled.

The judgment, issued by Justice Anne-Marie Gowora, deals a blow to a series
of cases in which police have relied on certificates issued by the Ministry
of Home Affairs to bolster allegations against opposition members accused of
perpetrating petrol bombings that hit the country in March and April. The
certificates order the courts to deny particular suspects bail.
In a ruling granting bail to Movement for Democratic Change (MDC) member
Ishmael Kauzeni on Monday, Justice Gowora said that although the statutory
provisions empowering Mohadi to issue certificates came into force in 1996,
they had never been ruled on by the courts.
"In casu, the statutory provision under, which the certificate was issued
does not give the Minister authority to issue a certificate requiring that
bail be denied. All it provides for is for the Minister to certify that it
is his intention to charge the accused person with an offence specified in
the third schedule of the Act," the judge observed.
Justice Gowora criticised the issuance of certificates by Mohadi directing
that accused persons be denied bail without first affording them a chance to
be heard.
"The certificate would affect a suspect's personal liberty and constitutes a
most serious and fundamental inroad into his rights and the right to
personal liberty. Consequently, it is fair and just that he be heard before
a document that has the effect of depriving him of such liberty is issued."
Alec Muchadehama represented Kauzeni, while Tawanda Zvekare represented the
State.
Justice Gowora's ruling came as the government's claims that the MDC was
involved in terrorist activities fell flat after terrorism charges against
18 out of 32 party members were withdrawn. The fate of the remaining 14 will
be decided tomorrow.

Fresh twist to River Ranch legal battle

FinGaz

Clemence Manyukwe Staff Reporter

BUBYE Minerals has lodged a High Court application claiming that retired
army general Solomon Mujuru and former High Court judge George Smith are
manipulating the judiciary system to win control of River Ranch diamond
mine.

In papers filed on Monday, Bubye also claims that the Master of the High
Court, Charles Nyatanga, was the point man in the alleged plot.
Bubye's claims are only the latest twist in a long running legal battle
between itself and River Ranch Limited, a company in which Mujuru is a
shareholder and to which Smith is legal advisor.
River Ranch Limited is yet to file opposing papers, but has previously
denied any wrongdoing.
In an affidavit, Bubye director Adele Farquhar says the way River Ranch
Limited associated with Nyatanga had amounted to "naked corruption."
Bubye's latest court application was filed on the same day that Farquhar,
her husband and fellow director Michael, appeared in court in a criminal
trial for allegedly stripping River Ranch assets, a charge they deny.
In their defence outline, the couple insisted they have rightful title to
the mine, charging River Ranch Limited seized the mine from them at
gunpoint.
Court papers show that the latest application was triggered by a letter
dated May 24, signed by Nyatanga and addressed to Bubye Minerals, saying the
latter's Supreme Court appeal on the mine's ownership had lapsed as they had
failed to inspect a record of proceedings in the lower court.
Nyatanga's letter was written after High Court judge president Rita Makarau
had quashed an earlier attempt by a High Court clerk to declare the appeal
as having lapsed.
"The Fifth Respondent (River Ranch Limited), which is the alter ego of a
Saudi millionaire, Mr Adel (Abdulrahman al) Aujan, Retired General Solomon
Mujuru, ZANU PF central committee member Mr Tirivanhu Mudariki and, at one
time, Advocate Adrian de Bourbon, passed a resolution on 26 April 2004, to
seize the mine from the applicant. This was subsequently done at gunpoint,"
part of the affidavit reads.
"The letter of Mr Nyatanga dated 24 May 2007 gives the impression that he is
not bound by the directions of this court, but in fact that the judges are
subordinate to him. He is comforted in this stance by his close association
to a former judge of the High Court and the spouse of the Vice President of
this country."
The Farquhars added that Mujuru and Mudariki were using their political
influence to ensure Bubye's claim to the mine disappears.
Bubye claims that the prosecution was aimed at exhausting them "financially
and emotionally" in the hope that they would abandon their bid to reclaim
the mine.
"The manipulation does not end there. One month ago, the first respondent
(Nyatanga) acting at the behest of (River Ranch Limited), fast-tracked a
criminal prosecution against my husband and myself. (Nyatanga's) staff have
confirmed the frequent caucusing that takes place between Mr L G Smith and
Mr Nyatanga over this matter, including writing the letters that are
patently illegal," she stated in the affidavit.

Councils face collapse, says Masvingo mayor

FinGaz

Nkululeko Sibanda Staff Reporter

MOST local authorities in Zimbabwe are headed for collapse and will continue
to depend on credit from central government to finance basic operations,
says the head of one of the last urban centres still being run efficiently.

Alois Chaimiti, executive mayor of Masvingo, told The Financial Gazette in
an interview that development of new infrastructure and improvement of
existing networks has stagnated due to a worsening lack of funding.
Chaimiti said given the prevailing situation where the Zimbabwe National
Water Authority, was in the process of taking over water provision to
residents in all towns and cities, local authorities were facing serious
financial constraints that disabled their operations.
Chaimiti said since independence, municipalities had been sustained by
revenue from water and sewerage tariffs.
"Now that government has embarked on a plan to take over water provision, it
means that local authorities have to find other means of survival and, in
this current situation, there are no other feasible means except for them to
be allowed to retain water and sewerage reticulation services," Chaimiti
said.
He said given the current economic crisis, the only route to survival for
the local authorities was to borrow from a dwindled national fiscus.
The state of the economy, he said, makes it difficult for the government to
make municipal funding a priority.
"I am afraid that most of our members (local authorities) could find
themselves in the most difficult of circumstances, which may, in the long
run, affect their operations because they may not be able to find anyone who
can guarantee them funding.
"It becomes tricky when the local authorities try to pass on the cost to the
ratepayers, because residents will also resist the burden that we will be
placing on them. So it has become a complex situation."

Forex traders defy clampdown

FinGaz

Stanley Kwenda Staff Reporter

SHE spent three days in a filthy Harare Central Police Station cell, but she
has no qualms about continuing her risky trade.

Talitha is a foreign currency trader who regards the activity as her
full-time occupation and does not mind living with the constant threat of
arrest.
But after spending a year on the streets of Harare exchanging currency, she
was arrested for
the first time along
with hundreds of other foreign currency dealers during a police raid last
weekend.
The traders have taken over parts of Harare's central business district,
cashing in on chronic foreign currency shortages on the official market.
Critics blame the government for running down the country's economy,
destroying the real sector in the process, which is supposed to generate the
foreign currency.
The police have responded by arresting foreign currency dealers
but that has done little
to scare off traders.
Although Talitha has spent three nights in a crowded and squalid police
cell, she has vowed to return to the streets.
"I will not abandon the trade just because of the police. Where there is a
high risk, there are high returns," said Talitha as she made her way to
Ximex Mall in her sleek new car.
She spends the better part of her day buying and selling foreign currency at
the mall, which is ironically adjacent to a money transfer agency.
The dealers are making millions of dollars in
a single day from the margins creamed in United States dollars, Botswana
Pulas and South African rands.
"It's hard for me to think of a day when I will prepare a curriculum vitae
and apply for a formal job. I can't think of a better paying job," Talitha
chuckles.
Looks can be deceiving and at first glance she looks innocent, but she is a
hardcore, streetwise dealer who knows no other profession. She has never
held any other job.
She is so used to the informal language spoken in her line of business that
she now seems to struggle with "proper" Shona.
"I use slang because that's the only language that I am comfortable with.
Those I deal with understand it. The good thing is that if there are any
police officers on patrol they cannot understand some of the things we will
be saying," said Talitha.
As I interviewed her, I was exposed to a strange form of communication among
foreign currency traders.
They have unique ways of sending different messages; such as alerting each
other about the presence of the police or giving information about
fluctuations in exchange rates.
The traders raised their fingers in the air in a certain way to convey the
necessary information.
But how do the dealers come up with an exchange rate?
"It's easy, anyone can set the exchange rate. Usually desperate people who
are prepared to buy at a higher rate set the rate. But basically anyone with
loads of Zimbabwean dollars can determine the exchange rate," said Talitha.
"It is now also an unwritten rule that rates have to go up everyday, so if
we end the day on US$1 to $80 000, it means that the following morning it
has to go up. As long as the Zimbabwe dollar is in abundance on the market
the rates will continue going up."
At Fourth Street bus terminus, flashy cars are a common sight. They come in
different shapes and colours. Although there is always a heavy police
presence, foreign currency traders are unfazed.
They are extending their tentacles to the Avenues area, beyond their
traditional Samora Machel Avenue "boundary" at the Holiday Inn Hotel.
They have cheekily suggested that Reserve Bank of Zimbabwe governor Gideon
Gono should seek their advice on monetary policy.
"When Gideon Gono makes his monetary policy at the glass building, he should
also come and address us here, where the real rates are set," said a trader
identified as Nigel Rand.
Despite her arrest last week, Talitha said she did not forfeit anything to
the police. She, however, paid a $2 500 fine and suffered a loss of dignity.
The police raid on hundreds of traders has not affected black market
exchange rates, which continue to soar.
By the end of the day last Saturday, when the police clampdown took place,
the exchange rate against the South African rand was R1: $9 500. By Monday,
when the dealers were released, it had shot up to $10 000.

Kidnap allegations expose Masvingo ZANU PF factions

FinGaz

Nkululeko Sibanda Staff Reporter

KIDNAP allegations against Fortune Charumbira, head of the Zimbabwe Council
of Chiefs, have once again exposed ZANU PF's factional fights in Masvingo,
with the ruling party provincial leadership accusing the traditional leader
of trying to cover up his alleged misdeeds by claiming that his political
rivals are plotting against him.

Police in Masvingo are investigating charges that Charumbira was behind the
kidnapping and assaulting of village headman Boniface Manzungu, after he
reportedly denied water to illegal settlers at the Mushandike irrigation
resettlement scheme.
Charumbira says the charges are part of a plot against him by members of the
ZANU PF Masvingo provincial executive.
However, the ruling party's Masvingo provincial spokesperson, Kudzai Mbudzi,
has hit back, saying Charumbira should draw a distinction between criminal
and political matters.
"I am not sure of the politics, which the chief referred to when asked to
comment. This case has nothing to do with the politics of the province, but
is all about
the abuse of power and corruption. It appears to me that this is a criminal
matter between Charumbira, Manzungu, and the courts of law. As a party we
believe that justice should prevail at all times, and it is our hope that it
will be allowed to prevail in this case.
"Politics of adversity rule do not involve the courts of law," Mbudzi said.
Masvingo has long been the scene of internecine fighting between two
factions of the ruling party. A faction that includes former Masvingo
governor Josaya Hungwe and legislator Shuvai Mahofa accuses another led by
provincial party head Alex Mudavanhu of involvement in plotting to oust
President Robert Mugabe.

Empowerment spectre dampens FDI lure

FinGaz

Dumisani Ndlela Business Editor
Mines halt planned growth programmes
GOVERNMENT'S plan to lure foreign direct investment in the country's
resources sector appears to have been derailed by apprehension over its
indistinct ambitions of empowerment in the sector as well as acute foreign
currency shortages.

Mining industry players said several mining operations had put on hold
planned expansion programmes, suggesting that international financiers,
previously keen on underwriting projects in the sector, had become
tight-fisted due to increasing risk and security concerns.
Several mining houses pledged to pour in millions of dollars in the sector
after the Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono unveiled in
2004 a cocktail of proposals he said were meant to trigger growth in the
mining sector through fresh investments.
Gono had proposed to allow mining companies with foreign shareholders easy
access to foreign currency for the repatriation of dividends, as well as a
guarantee to pay back investors their capital if they decided to pull out of
the country.
The RBZ had also pledged to liase with the Ministry of Mines to explore the
best way of ensuring that mining companies could be protected from forcible
seizures.
South Africa's Mzi Khumalo's Metallon Corporation had submitted its
investment proposals amounting to US$100 million after assurances that the
guarantees were likely to be in place before 2005.
Metallon anticipated floating its Zimbabwean and South African gold assets
on the London stock market and use the proceeds from the float to augment
its asset base, which is currently too dependent on Zimbabwean mines.
Khumalo's proposal was to invest close to US$15 million in the acquisition
and expansion of Metallon's Zimbabwean mines.
Impala Platinum pledged about US$700 million to develop its platinum mines
in Zimbabwe over a five-year period.
Additionally, its Zimbabwe subsidiary, Zimbabwe Platinum (Zimplats), in
which it holds
an 87 percent stake, also sought to spend US$2 billion over 20 years to
exploit its platinum deposits on the great dyke belt.
Zimplats' ambitious project - which would be the biggest ever in Zimbabwe -
involved the construction of a thermal power station at its current
operations in Selous, that would help alleviate Zimbabwe's power crisis.
The government was going to be offered surplus power, and even a stake, in
the power plant.
The US$2 billion project
also involved expansion over 20 years, which would
boost platinum output to well over one million ounces per annum, from
current levels
of around 85 000 ounces per year.
Eight new underground mines would be opened during the first phase of the
expansion covering the area at the Ngezi Complex, according to details of
the project, whose approvals have also not yet been granted by the
government.
But besides government approvals, sources said the ambitious projects had
delayed taking off because of concerns over government's targets for
empowerment as well as the failure by Zimbabwe to sign a bilateral accord
with South Africa that would protect the rights of South African
investments.
The accord has not yet been signed although reports suggest it was ready to
be signed two years ago.
Industry players said several projects were grounded because of increasing
investor concern over government's planned legislation on mining sector
empowerment.
Gono indicated in January that successful attraction of regional and
intercontinental capital required "freeing the economy of any apprehensions
on the security of private and foreign investments".
"The progress on the implementation of bilateral investment protection
agreements has not been encouraging, notwithstanding the explicit
aspirations and directions long given to the relevant authorities in
government by the country's leadership," Gono said.
He has repeatedly called for the enactment of legislation related to
empowerment in
the mining sector to create certainty among investors and unlock investment
currently held because of lack of clarity on mining sector empowerment.

Amendment could derail Zim initiative

FinGaz

Njabulo Ncube Political Editor

ZANU PF's rush to tinker with the Constitution of Zimbabwe, for the 18th
time could torpedo the Southern African Development Community (SADC)
initiative to find a lasting solution to the country's political and
economic crisis, analysts say.

Justice, Legal and Parliamentary Affairs Minister, Patrick Chinamasa, last
Friday gazetted the Constitutional Amendment (Number 18 Bill), which is due
to be debated in the House of Assembly next month.
The Bill, endorsed by Cabinet last Tuesday, seeks to turn an expanded House
of Assembly into an almost entirely elected chamber with all chiefs and
provincial governors being moved to the Senate.
It will also facilitate the establishment of an "independent" Human Rights
Commission, which analysts say is unlikely to have the clout to censure
state human rights abuses.
The proposed Zimbabwe Human Rights Commission will have nine members,
appointed by the President jointly with Parliament, dominated by his party.
Critics fear President Robert Mugabe will fill the commission with loyalists
to camouflage his government's abuses against perceived enemies in civic
society and the opposition.
The Bill proposes to expand the House of Assembly from the current 150 to
210 members, and the senate from 66 to 84.
Other proposed changes include shortening the six-year term of the next
elected president by one-year.
Under the provisions of the proposed Bill, if a sitting president dies or is
unable to continue performing his or her duties, the legislature will
appoint a new president.
At present, if the presidential seat falls vacant, an election must be held
within 90 days.
Other proposals include making the Delimitation Commission the sole body
that decides constituency boundaries, with the President's power limited to
simply asking it "to reconsider".
The Movement for Democratic Change (MDC) is pushing for a complete overhaul
of the constitution, including reforming all electoral laws before elections
next year.
This is one of a plethora of demands the opposition wants included on the
agenda of the proposed inter-party talks for the resolution of the crisis,
whose contagion has spread to neighbouring SADC states.
Observers say with elections less than eight months away, a new
people-driven constitution is out of reach.
President Mugabe told the London-based New African magazine that a new
constitution was out of the question after the country voted against one
proposed by the government in February 2000.
To be enacted into law, the draft Bill must be approved by a two-thirds
majority of both the House of Assembly and the Senate, which the ruling
party can easily command.
Noel Kututwa, chairman of the Zimbabwe Electoral Support Network, said by
forging ahead with the amendment, the ruling party had shown the world it
had little regard for the outcome of the SADC initiative.
"The most unfortunate thing is that there has not been consultation with the
generality of the people of Zimbabwe," said Kututwa.
"Our position has always been that all the people of Zimbabwe should be
involved in the amendment of the constitution of the country. Some of the
problems of this country have to do with the constitution and the electoral
laws, and this is something that Mbeki has mentioned regarding his mandate
in solving the crisis."
Nelson Chamisa, spokesman for the Morgan Tsvangirai faction of the MDC,
described the proposed amendment as piecemeal and cosmetic reform designed
to perpetuate President Mugabe's grip on power.
"People are asking for a new constitution, yet what they are getting is a
piecemeal and cosmetic constitutional-making process. The whole thing flies
in the face of the SADC initiative. There is a general consensus that the
present constitution is a problem, including among the parties involved in
the Mbeki initiative. In short, what is happening is a negation of the SADC
initiative," said Chamisa.
The Zimbabwe Congress of Trade Unions (ZCTU) last week successfully
pressured the International Labour Organisation to take note of Zimbabwe's
human rights record, citing the assault of trade unionists by police last
year.
Consultative meetings over the rights commission have been surrounded by
controversy.
Last year, rights groups such as the National Constitutional Assembly, the
ZCTU, the Crisis in Zimbabwe Coalition, the Zimbabwe Lawyers for Human
Rights (ZLHR) and the Media Institute of Southern Africa, boycotted an
inaugural meeting on the commission organised by the United Nations
Development Programme, citing state violence against labour leaders.
Activists have also demanded the repeal of repressive legislation such as
the Public Order and Security Act and the Access to Information and
Protection of Privacy Act, before the setting up of the rights commission.
Irene Petras, acting director of the ZLHR, said it would be very difficult
for the public to accept the independence of the proposed commission
considering that the President and Parliament would be charged with
appointing members of the commission.
"This has been a bone of contention during our deliberations with the
government and other stakeholders over the human rights commission," said
Petras. "We are concerned it will be a partisan project. We would rather
have a process where people to serve on the commission are appointed on
experience and merit rather than on political affiliation."

Massive water cuts hit Byo

FinGaz

Charles Rukuni Bureau Chief

BULAWAYO - Council this week started shutting down water supplies to its
suburbs, in some cases for up to eight hours a day, to avert a crisis which
could see some suburbs receiving water only once in every three days.

This follows the decommissioning of Umzingwane Dam, one of the five that
supply the city.
An analysis of the water situation carried out by the council on May 26
indicated that the city's supply dams were only 26.5 percent full.
Umzingwane was only two percent full while Upper Ncema was worse at 1.6
percent of its capacity. Inyankuni, the second largest supply dam was 11.7
percent full while Lower Ncema, the smallest, was 18.3 percent full. Insiza,
the biggest supplier was 47 percent full.
The council said that Lower Ncema and the Criterion raw water reservoir
would be decommissioned in August. This would leave the city with only 69
000 cubic metres of water a day against demand of 119 000 cubic metres a
day.
Since consumers would only be receiving half of their water requirements,
this implies that they would only be supplied with water once every two
days.
Inyankuni was likely to be decommissioned in October if the situation did
not change. The supply would then be reduced to 46 000 cubic metres a day,
meaning that consumers would be entitled to receive water once in every
three days.
Those in high lying areas would not receive any water at all and would have
to rely on bowsers.
Bulawayo residents have been experiencing water rationing for years now. The
council tightened rationing in January but it says demand still remains high
at 119 000 cubic metres instead of the targeted 90 000 cubic metres or less.
It had, therefore, been decided that instead of leaving it to individual
compliance, rationing would be effected from the source.
Most of the suburbs in the low-density suburbs will have water shutdowns of
eight hours from 7.30 to 15.30 three days a week. They have been grouped
into two, with some having shutdowns on Monday, Wednesday and Friday and the
others on Tuesday, Thursday and Saturday.
High-density suburbs will have shutdowns everyday from Monday to Saturday
from 1pm to 5 pm.
Bulawayo's salvation lies in the Zambezi Water pipeline, which is taking
ages to come on stream. It could also have benefited from the
Mtshabezi-Umzingwane pipe link but there is no money for the project, which
has been tossed between the council and the Zimbabwe National Water
Authority (ZINWA) for years.
ZINWA is planning to take over water supplies to the city, but the
organisation is said to be broke.

Council won't part with urban trunk roads

FinGaz

Bureau Chief

BULAWAYO - A council committee last week objected to the planned takeover of
the urban section of trunk roads but gave the thumbs-up to the renaming of
Main Street after former Vice-President, Joshua Nkomo.

Two important institutions are already named after Nkomo who was also known
as Father Zimbabwe. These are Bulawayo's international airport and the
polytechnic in Gwanda.
Several name changes had been proposed but only two went through. The other
change approved was that of the Old Victoria Falls Road, which will now be
known as Kenneth Kaunda Avenue Extension.
The proposed changes would have seen Fife Street being named after
liberation fighter Nikita Mangena; Fort Street after King Mzilikazi;
Conaught Avenue after Chief Sigombe Mathema; Lady Stanley Avenue after King
Lobengula; Coghlan and Athlone Avenues after King Lozane; and Batsch Avenue
after liberation fighter Lookout Masuku.
Lady Rodwell Maternity Hospital and Richard Morris Hospital, both part of
United Bulawayo Hospitals, were to be renamed Amhlope and Mehlokazulu while
White City Stadium would have been renamed Hugh Ashton Stadium after a
respected former council employee.
Members of the council's street naming sub-committee argued that some of the
names that were supposed to be changed were not offensive because they
related to people who had contributed to the welfare of society.
They also said some of the proposed new names already had infrastructure
named after them. Since Bulawayo was growing it would be better to use the
proposed names on new buildings and roads as some of the roads in new
suburbs had no names.
The resolution to adopt only the name changes for Main Street and Old
Victoria Falls Road was adopted at the full council meeting last week. The
same meeting, however, objected to the government takeover of the urban
section of trunk roads from the city, saying this was likely to result in a
deterioration of the roads as the government had a poor record of
maintaining roads.
The councillors, however, decided to shift debate on the takeover to
council-in-committee, which is not open to the public.

Gold output to tumble again as mines fail to secure inputs

FinGaz

Staff Reporter

ZIMBABWE'S gold output is poised for another tumble as mining companies
continuously fail to secure inputs for mining the precious mineral, Chamber
of Mines president Jack Murehwa told The Financial Gazette.

Recent reports have indicated that the country's gold production had fallen
to a record eight metric tonnes for the 12 months to March 2007.
Effectively, Zimbabwe has failed to capitalise on the firming global mineral
prices.
The gold price surged from around US$275 an ounce in 2001 to more than
US$600 last year.
"Gold output in the immediate short term may fall because of curtailed
production due to lack of inputs without the requisite revenue," Murehwa
said, indicating the plunge in production had not yet touched a bottom.
Murehwa said several mining companies were increasingly failing to secure
inputs because of a shortage of foreign currency. "Mines continue to fail to
secure inputs, mainly cyanide, required in the processing of gold ore. They
may be forced to close their processing plants and therefore fail to produce
any gold," Murehwa said.
Last month, Murehwa said the country's gold mines were still owed in excess
of US$20 million for bullion delivered to Fidelity Printers and Refiners, a
subsidiary of the Reserve Bank of Zimbabwe and the only legal buyer of gold
in the country. Some of the gold had been delivered as far back as November
last year.
Murehwa also reiterated the Chamber's stance on the government's proposed
legislation to force foreign-owned mining firms to give up at least 51
percent of their shareholding to local investors.
"The Chamber for some time has been waiting and urging for the finalisation
of the process," he said.
Unfortunately, Murehwa said, the delay by the government had "meant that
investors already in the country remain apprehensive about how the whole
process will pan out and affect them."

RioZim ready to invest US$200m in Murowa Mine

FinGaz

Chris Muronzi & Tawanda Karombo Staff Reporter

ZIMBABWE Stock Exchange-listed RioZim is in talks with government to create
a "conducive regime" necessary for the investment of over US$200 million in
Murowa Diamond Mine, chairman Eric Kahari said last week.

Kahari, however, did not give details on how far the talks had progressed.
He said operations at the country's largest diamond mine changed relatively
in the first quarter of this year owing to the exhaustion of a soft and
richer surface layer but installation of a crusher had allowed tonnage
throughput to be maintained.
The company was now mining the hard underlying kimberlite at the long- term
ore reserve grade, said Kahari in a statement to shareholders given at
RioZim's annual general meeting.
He said the group had currently employed stopgap measures to continue mining
while negotiations continued.
"Operations at Murowa changed during the first quarter. The soft, enriched,
surface layer has largely been exhausted. Installation of a crusher has
allowed tonnage throughput to be maintained. However, this is now the hard
underlying kimberlite at the long-term ore reserve. This impacts on diamond
production," said Kahari.
"This is a stopgap development pending the implementation of the expansion
project. A two million tonne per year operation (approximately 10 times the
size of the existing activity) is the optimum size for the mine. This issue
is being vigorously pursued with the relevant government authorities with a
view to obtaining the conducive regime necessary for a US$200 million plus
investment," said Kahari.
RioZim hopes to expand Murowa's output tenfold to two million tonnes per
year but this largely depends on whether the government guarantees security
for the investment.
RioZim has previously managed to win concessions on its investments in
Zimbabwe, whose government is pushing for legislation to compel
foreign-owned mining firms to cede at least 51 percent shareholding to local
investors.
Last year RioZim engaged government after Mines Minister Amos Midzi
announced plans to take controlling stakes in mines.
The group was given a reprieve by government and assured its investment was
safe.
Kahari also confirmed renewed interest by his company in setting up a
thermal power station but said talks to set up an independent power producer
in the country were crucial for the project to proceed.
The Financial Gazette recently reported that RioZim was courting unnamed
foreign investors in London to revive its US$1.6 billion thermal power
project conceived in the late 1990s in the wake of disruptive power cuts
that are currently troubling local industries.
Power outages have dimmed prospects of the long-sought-after recovery in the
mining sector, a significant contributor to both the country's foreign
currency earnings and gross domestic product.

Retailers reject costly suppliers' quotations

FinGaz

Kumbirai Mafunda Senior Business Reporter

ZIMBABWE'S troubled retailers, accused by politicians of profiteering, have
joined forces against unscrupulous manufacturers and suppliers to demand
rational pricing of goods.

In a desperate bid to exonerate themselves from longstanding accusations of
profiteering from both the government and consumers, retailers have begun
turning down quotations from manufacturers and suppliers they deem
unrealistic.
"Retailers have gone to suppliers telling them that we will not buy from
them at that price because there is another competitor offering the same
product at a lower cost," Retailers Association of Zimbabwe (RAZ) chairman
Willard Zireva told The Financial Gazette recently.
Zireva said the rejection of the costly quotations had resulted in some
suppliers applying brakes on frequent price increases while others had
opened up on payment terms.
"In May there was a lower increase in prices in terms of percentages. Prices
are going up at a slower rate," Zireva, who is also chief executive officer
of OK Zimbabwe, one of the country's largest supermarket groups, said.
Retailers and manufacturers have in recent years been on the receiving end
of unkind criticism over price increases, with President Robert Mugabe
sharply rebuking them for rampant profiteering and accusing them of
increasing prices on a daily basis to foment anger among restless consumers
and turn them against his trouble government.
However, retailers and manufacturers have denied charges of plotting to
create social upheaval in the country and have blamed the massive price
increases on the steep fall of the Zimbabwe dollar against major foreign
currencies like the greenback and the British pound.
The high cost of fuel and electricity had also resulted in higher input
costs.

Romping to victory in a one-man race

FinGaz

Personal Glimpses with Mavis Makuni

"ZANU-PF RETAINS ZAKA EAST", announced the official press on Monday after a
by-election in which the ruling party, as usual, virtually competed against
itself in disputed circumstances.

The seat, which fell vacant after the death of Tinos Rusere, was won by
Retired Brigadier General Livingstone Chineka who polled 11 162 votes "to
romp to victory", as the official press enthusiastically put it. It is an
appropriate description considering that the retired army man "shrugged off
the weak challenge of Mr Nicholas Shanga of the little known United People's
Party, who polled 1 117 votes", the state daily reported. The paper said
Lameck Batari of the "equally unknown" Zimbabwe People's Democratic Party,
received 662 votes in polls that the paper said were designed to give the
political parties a chance to gauge their strength ahead of next year's
landmark harmonised elections.
Naturally, the winner, Brig Chineka was elated, commenting: "Firstly, I am
happy because it was a peaceful election and a clear indication of maturity
between ZANU PF, UPP and ZPDP and I also thank the people of this
constituency for their support and I promise that I will work tirelessly to
serve them whether they are from MDC, ZANU PF and the other party".
The ruling party and Brig Chineka are evidently pleased with the outcome
although it was a pyrrhic victory. It reminds me of the time when a friend's
daughter was small. She loved to play games such as chess with older members
of her family and would throw tantrums whenever she lost.
To keep the peace, members of the family agreed that whoever was playing a
game with her should deliberately go easy to let the little girl win. But
one day when she was older and had become quite good at chess, she caught
her mother gesturing to someone the child was playing a game with to let her
win. The youngster hit the roof, declaring that she did not need to be
mollycoddled but wanted to win fairly and squarely.
It is deplorable that in an analogous situation adult men and women who
contest elections as ZANU PF candidates are always pleased to win in
circumstances in which conditions were undemocratically skewed in their
favour. They should be embarrassed but Brig Chineka's comments after his
"romp" to victory show he thinks everything is hunky-dory. He steers clear
of discussing the circumstances that resulted in him squaring off with
"obscure parties" instead of the main opposition party, the MDC.
He knows that the MDC boycotted the polls because of an uneven electoral
field and unfair conditions pertaining to the entire process. Even the
"obscure parties" that fielded candidates in the Zaka East by-election
expressed disgruntlement over the conditions and atmosphere in which the
polls were conducted. The UPP's Daniel Shumba is reported to have protested
over the intimidation of voters in the run-up to polling day. No one would
begrudge ZANU PF its foregone "victories" in elections if it were clear to
everyone that this party plays by the rules. This is not the case.
The ruling party has been persistently accused of intimidation, vote buying
and using state machinery and resources to tilt the outcome of polls in its
favour. It is no secret that the rural areas, which are said to be ZANU PF's
strongholds, have been declared "NO-GO" areas for the MDC with allegations
being rife that youth militias are deployed to these areas to cow the people
ahead of elections. Brig Chineka and other ZANU PF election winners are also
aware of persistent complaints about the controversial role of chiefs, some
of whom have been known to ban the holding of opposition rallies in their
areas.
The ruling party and government have done nothing to address these concerns.
They have instead been quite happy to beat their chests and gloat about
election victories achieved in such disputed circumstances. After the Zaka
East by-election, Utoile Silaigwana of the government-appointed Zimbabwe
Electoral Commission (ZEC) typically declared the by-election to be a true
barometer of the wishes of the people.
How can he come to such a conclusion when turnout was a negligible 10
percent of registered voters? That the ZEC and the ruling party are not
disturbed by the increasing apathy as shown by the 90 percent registered
voters who gave the Zaka East polls a miss is confirmation that holding and
winning elections by hook or crook are now officially considered ends in
themselves.
It would be easy to denounce those who do not turn up to vote as being lazy
if the "stayaway'' rate was, say, in the region of 33 percent. But when the
proportion is a whopping 90 percent and the trend is prevalent throughout
the country, the ruling party should ask itself whether it is genuinely
getting its mandate from the people of Zimbabwe as it is often too eager to
declare. When millions do not bother to turn up to vote it could be because
experience has taught them it is not worth the trouble. They may feel that
the "system" does not reflect their interests and the government does not
respond to their needs and aspirations.
The ruling party and the government may not like it, but after persistent
allegations of election rigging, most people may conclude that with or
without their votes, the outcome of polls is predetermined and the ruling
party will always win. Wittingly or unwittingly, the authorities have tended
to confirm this perception through the heavy-handed manner in which the
opposition has been thwarted at every turn in the electoral process.
If they are to be honest, ZANU PF election strategists should advise the
chefs that Brig Chineka's victory on the basis of a 10 percent turnout in
circumstances in which all opposition parties have accused the ruling party
of intimidation and vote buying is not a sign of its strength for next
year's harmonised elections. South African President, Thabo Mbeki who is
mediating in the Zimbabwean dispute, has declared his determination to
ensure that those polls are free and fair. But what happened in Zaka East
shows that the ruling party is as determined as ever to win at all costs.
Gauging its strength by letting Brig Chineka stand against candidates from
two obscure parties is tantamount to a "boxing" champion (a pun intended
there) preparing for a major bout by sparring with a schoolboy. Victory
under such circumstances is not a true reflection of realities.

mmakuni@fingaz.co.zw

Building castles in the air

FinGaz

Comment

ONE critic once remarked that despite all the good the Movement for
Democratic Change (MDC) has done in fighting to keep the country's shrinking
democratic space open, its biggest shortcoming is that it is at sixes and
sevens when it comes to mounting any serious challenge against the ruling
party, fingered for ruining one of Africa's most promising economies.

While the confusion in the party first reared its ugly head in 2005, when
the MDC split right through the middle, its roots could be traced to its
lack of an ideology that binds the alliance. In as much as one might not
want to buy this argument in its entirety, it would be naïve not to
acknowledge that there is a grain of truth in it.
A few months after its formation in September 1999, the MDC almost
red-carded ZANU PF when it polled 57 seats, only five short of the ruling
party's 62 in the 2000 general elections. Similarly in 2002, it almost
succeeded in shuttling its leader, Morgan Tsvangirai, into State House, but
again, it remained a tale of so near, yet so far.
It would appear that after the disputed March 2005 polls, the alliance
suffered a crisis of expectations, leading to the October split.
Indeed, the ruling party's reluctance to create conditions conducive for the
holding of free and fair elections and its obsession with frustrating the
opposition using all sorts of tools at its disposal has conspired to slow
the momentum in the MDC, in the same manner it did to Joshua Nkomo's
PF-ZAPU, Ndabaningi Sithole's Zanu (Ndonga) and Edgar Tekere's Zimbabwe
Unity Movement.
And yet conditions on the ground lay a fertile ground for the MDC to tap
into a deep well of public disenchantment. What with rising anger against
the establishment, institutionalised corruption and an unprecedented
economic meltdown that has left ZANU PF's propagandists with no plausible
explanation to offer except to recite their mantra about sanctions repeated
ad nauseam.
True, the catastrophic economic collapse authored by ZANU PF has proved to
be President Robert Mugabe's biggest opponent. Sadly, the opposition could
still fail to capitalise on this because of internecine fights. Whereas a
united opposition could have had it easy under the circumstances, this might
not be the case unless the feuding MDC factions begin to look at the bigger
picture.
Reports suggest that efforts to mend the rift within the MDC have come
unstuck. The reason: the factions are in disagreement on the appointment of
a Cabinet in the event of an election victory next year. It does not end
there. There are also fights over the selection of candidates to represent
the party in constituencies to be created by ZANU PF via the controversial
enlargement of the House of Assembly, so we are told.
Talk of building castles in the air. This is nonsense! The MDC has
completely missed the point - it is not about who gets what, it is about the
people.
The country's economy is gasping for breath because the establishment thinks
of its survival first before anything else. In ZANU PF's scheme of things,
people only become a factor at election time. We fear this contagious
disease has spread to the opposition. For want of a better word, the
opposition now looks like a bunch of opportunists.
Zimbabweans yearn for a government that puts people's interests before
anything else. A government that would free them from the scourges of hunger
and poverty, a government that accepts criticism and not brand those it
differs with as traitors, one that would restore their long lost civil
liberties.
The MDC ought to have a rallying point, and therein, lies the ideological
fly in the ointment. With the 2008 elections only about 10 months away, the
MDC cannot afford to confront a determined ZANU PF while in disarray. The
feuding factions cannot even afford to spend a day longer squabbling.
The short time left should see the opposition vigorously push for conditions
guaranteeing free and fair elections; a new constitution, equal access to
the media, access to resources, an independent electoral commission and the
removal of restrictive laws that continue to be applied selectively by the
ruling party. It is only once in government that the MDC can preoccupy
itself with the sticking issues. Even then, it should be about doing the
right thing for the people. It should be about choosing the best from the
available crop.
Despite the ugly internal fights in ZANU PF, the end has always justified
the means. Amidst all the confusion in the MDC, the ruling party is stopping
at nothing in its quest to cling to power. It is not even devoting time to
the Southern African Development Community initiative, which it subscribed
to in March.
It means, therefore, that unity, come what may, is a must for the MDC if it
is serious about dislodging ZANU PF. Bruised and battered as it is, selfish
interests will not help the opposition, as these can only drive it further
from the centre of power.

FinGaz Letters

Let's not make them turn in their graves

EDITOR - Zimbabwe is a land of contrasts. This has long become a textbook
phrase. Yet, not since the days of colonial rule has its meaning been so
ominous as now.

While Zimbabweans are used to luxury - it does have its limits after
all -poverty and despair are limitless and cannot but cause a good deal of
concern. Over 90 percent of the population is living below the poverty datum
line, the worst recorded since 1980.
The gap between the haves and have-nots has widened to an alarming level.
Most employers are insensitive to their workers' plight and farm workers,
who should spearhead the recovery of the economy, are paid wages which
cannot buy them a 10kg packet of mealie-meal or a kilogramme of beef.
Corporates prefer to pay over $300 000 per day for dinner for their workers
who put in overtime yet they are taking home a taxed salary of about $1.5
million.
If ever there is a "Domestic Violence Bill" surely there should be a "Labour
Abuse Bill", which would ensure that the workers are treated fairly.
The government, as it looks into the composition of corporate shareholding
in the mining sector, should also look into the gap between the salaries of
the bosses and workers and come up with a meaningful ratio between the
salaries.
Zimbabwe is not as bad as is being portrayed, it's only that it has been
sabotaged by greedy mercenaries who are enjoying the status quo!
The reason why those who lie at Chimoio and Nyadzonia's blood was spilt is
because the gap between the rich and poor was too wide. Let us not make them
turn in their graves.

Lovemore A Magaso
Chitungwiza
---------------
 To err is only human . . .

EDITOR - I have found it appropriate to formally write to you and extend my
personal apology over the erroneous reference to your paper in a statement
(May 31) from the Movement for Democratic Change (MDC) regarding recent
media claims that MDC leaders had gone to South Africa to meet outgoing
Prime Minister Tony Blair.
I have read your article on the issue and, indeed, nowhere did you ever make
reference to the so-called meeting in question, and neither did you
indirectly suggest that.
Please kindly accept my sincere and unreserved apologies over the discomfort
this matter may have caused to yourselves and your paper.

Gabriel Chaibva
Secretary of Information and Publicity MDC (Mutambara)
-----------------
 Our liberators have become tormentors

EDITOR - I was surprised and shocked a few months ago when President Robert
Mugabe declared that he would seek re-election despite all the evidence
around us that the people are fed up with his party, ZANU PF. What is clear
is that ZANU PF can never win a free and fair election that is preceded by a
complete levelling of the playing field. This is the reason why the state is
determined to suppress basic democratic rights through outright torture and
the closure of newspapers.
The reason why the liberation struggle was waged was to make sure that a
democratic society was created in which respect for human rights would be
the cornerstone. Instead of upholding this legacy the ZANU PF government has
destroyed it.
It is sad that our so-called liberators have become our tormentors. State
resources are now being used to crush all avenues through which Zimbabweans
can assert their rights. There is a real danger that our country will soon
become the worst violator of human rights in the whole world. This is the
legacy that ZANU PF shall leave long after its demise.

Kudzayi Kadzere
Harare
-------------
 Once bitten, twice shy

EDITOR - I recently purchased eight small containers of 'Beatrice healthy
milk' butter. The butter was of poor quality and four of the containers
turned out to be cottage cheese.
On phoning the number on the container, I was told to take the containers to
a bottle store in Newlands where they would be replaced. I was told by
Steve, who answered the cell phone, that they would replace two for one. He
also told me that he would let the bottle store know.
Needless to say, the bottle store knew nothing about the replacement
containers and would only replace with an equal number. Steve was phoned
again and he insisted that I should only receive one for one.
I live in Mazowe and normally shop in the Mount Pleasant area to save fuel.
It cost me a considerable amount of fuel and time to drive to Newlands
because of their lack of quality control.
Is this what passes for service in Zimbabwe now? I will not be buying any
more of their products.

Once Bitten
Mazowe
---------------
 Documents dilemma for diasporans

EDITOR - I wish to make a contribution to the ongoing debate about the 18th
Constitutional Amendment, which is likely to be tabled anytime before the
March 2008 elections.
As pointed out in other fora by others like Professor Jonathan Moyo, we need
to work within those constraints imposed by ZANU PF rather than demand some
things we all know we will not achieve with this government.
For example it is almost impossible to have a new constitution ready by
March 2008, but we should ask ZANU PF to include reforms like allowing
Zimbabweans in the diaspora to vote and granting dual citizenship to
children born in the diaspora.
We are facing serious problems in obtaining birth certificates for children
born in the diaspora, let alone passports. Even renewing passports for
ourselves is a nightmare. We end up taking our host countries' birth
certificates and passports as Zimbabwean documents are very hard to acquire.
As I write I have just read somewhere that a Zimbabwean passport now costs
US$220. How many can afford to pay that much, say you are a family of four?
We also end up taking up citizenship in our host countries to enhance our
chances of better employment opportunities, which require citizens only to
apply.
The Zimbabwean authorities have said it many times and a case in point is
when Reserve Bank of Zimbabwe governor Gideon Gono launched the Homelink
Project. He said that the world is now a global village, therefore, Zimbabwe
has to accept that its nationals can now move across boundaries in search of
other kinds of life, live and work anywhere in the world, just like any
other person.
However, Zimbabwe is now encouraging its nationals to obtain citizenship of
their host countries. If you go to the Zimbabwean embassy here, you will be
given a form, which asks you if you are eligible to apply for citizeship of
the country you are living in, and why you have not applied for that
citizenship if you are eligible. So in other words, why apply for a
Zimbabwean passport if you can change your citizenship?
The irony is that you are not allowed dual citizenship, but they want to
know why you have not applied for your host country's citizenship. Why does
the Government of Zimbabwe want to denationalise people in the disapora but
at the same time wants us to send our hard-earned money to them through
Homelink? Which home will they be referring to if I am no longer allowed to
claim Zimbabwe as my home country?
This farce has gone too far and we need to stop it. How, you may ask? Stop
being cry babies, let's close ranks and ensure we fight this evil practice.

Livison Kahondo
Australia