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

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FinGaz

      Early exit for Mugabe?

      Hama Saburi
      6/23/2005 8:01:52 AM (GMT +2)

      SOUTH Africa - thrust at the centre of resolving the Zimbabwe crisis -
has been asked to ratchet up pressure on President Robert Mugabe to retire
before his current term ends in 2008 and allow for a smooth transition
involving the country's key political parties.

      In a report released in Brussels on June 7, the International Crisis
Group (ICG) said the "quiet diplomacy" used by South Africa, the country
seen to have the greatest influence on Harare, had failed and new strategies
were necessary to arrest the deepening crisis across the Limpopo.
      ICG said Pretoria should flex its muscle in the African Union's (AU)
Peace and Security Council and the Southern African Development Community
(SADC) organ on politics, defence and security to press the Zimbabwean
leader to set a date for his retirement.
      The organisation said apart from setting a date for the President's
retirement, ZANU PF should also initiate discussion with the Movement for
Democratic Change (MDC) and the international community on the parameters of
an orderly transition, including the holding of new and joint presidential
and parliamentary elections monitored by the United Nations.
      It added that ZANU PF needed to demonstrate restraint in the exercise
of its two-thirds majority and the concomitant power to amend the
constitution and launch a process of legislative revision or repeal of
draconian acts muzzling the media and freedoms.
      Recent history, however, indicates the ICG could be barking up the
wrong tree as the AU and SADC have scarcely been able to pressure President
Mugabe and have actually stood by the Zimbabwean leader as evidenced by
their endorsement of the March 31 elections described by the United States
and the European Union as flawed.
      It is also unlikely that South Africa, which is Zimbabwe's biggest
trading partner, would take heed of ICG's recommendations and abandon its
"quiet diplomacy".
      President Thabo Mbeki has fought hard in the past to ensure Zimbabwe
remained part of the international community. The South African leader was
against the country's suspension from the Commonwealth and last year
condoned Harare's decision to deport a delegation of the South African
Congress of Trade Unions (COSATU), which the Harare authorities said had
sneaked into the country illegally. COSATU is an ally of the African
National Congress.
      Made up of influential personalities in global capital and politics,
the ICG, with its headquarters in Brussels, describes itself as an
independent, non-profit, non-governmental organisation with over 110 staff
members on five continents, working through field-based analysis and
high-level advocacy to prevent and resolve deadly conflict.
      Chris Patten, former governor of Hong Kong before its handover to
China in 1997 and a past European Commissioner for External Relations,
chairs ICG, while former Australian foreign minister Gareth Evans is
president and chief executive officer.
      Other notable members of the ICG executive board, which also includes
former heads of state and government, are hedge fund guru George Soros, a
high-ranking ANC official and former South African High Commissioner to the
United Kingdom, Cheryl Carolus, former US national security advisor Zbigniew
Brzezinski, former NATO supreme allied commander Wesley Clark, former
president of the Philippines Fidel V. Ramos, former Organisation of African
Unity secretary-general Salim Ahmed Salim, former president of Mexico
Ernesto Zedillo and former US senate majority leader George Mitchell.
      "He (President Mugabe) cannot be taken at his word that he will leave
in 2008, and that is a very long time to wait for a country suffering as
much as Zimbabwe is. Regional and other international actors should push for
a credible earlier date," said ICG in a document titled "Post-Election
Zimbabwe: What next?"
      The thrust of the report ties in with British Foreign Secretary Jack
Straw's call yesterday, ahead of a conference on Iraq, that African leaders
should put pressure on President Mugabe following his government's violent
eviction of urban dwellers deemed to have illegally settled themselves in
towns across the country.
      Straw said: "Bluntly, unless and until African leaders as a whole
recognise what is going on and take action, not only to condemn it but to
deal with it, we are likely to be in for many more months of this kind of
tyranny until Mugabe moves aside."
      ZANU PF chairman John Nkomo was quick to dismiss the report yesterday,
saying President Mugabe, who will be turning 84 in February 2008, "will
retire as and when he feels like", and that Harare would not be told by
anybody how to run its affairs.
      President Mugabe, who has been at the helm of the government since
independence - first as Prime Minister for seven years and later as the
country's first executive President - has said he will retire at the expiry
of his sixth term of office in 2008.
      There is, however, growing concern among President Mugabe's peers that
factionalism besetting his party, spurred by the desire of powerful figures
to position themselves for the succession fight, could be a recipe for
disastrous fissures within ZANU PF and the country.
      A taste of the bloodletting that could come was provided by a bitter
ZANU PF congress held in December last year which almost split the ruling
party along ethnic lines and threatened its victory in the March elections.
      "Mugabe's would-be successors within ZANU PF know their country cannot
afford indefinite isolation. In particular, the US, the EU and the
international financial institutions should make it clear that there will be
no end to targeted sanctions, no prospect of substantial aid and no
resumption of normal relations unless there are real changes, not only in
the names at the top of government structures but in governance," said the
ICG. "Indeed, they should signal that in the absence of such changes, ZANU
PF leaders run the risk of stronger measures that may grow out of close
investigation of such policies as their misuse of food aid for political
purposes and the general looting of the economy."
      Only last week, the EU extended and expanded sanctions targeted at
senior ruling party and government officials.
      While Bheki Khumalo, the spokesman for President Mbeki could not be
reached for comment yesterday, ZANU PF national chairman Nkomo said the
report was just one of the many attempts made to exert pressure on President
Mugabe to quit.
      "President Mugabe has gone through all these things even before our
liberation. He has been called names, incarcerated and we don't believe it
(retirement) is something that should preoccupy us. What should preoccupy us
is doing the right things for our people," Nkomo, who was recently appointed
Speaker of Parliament, said. "President Mugabe has stood firm on matters of
principle and has not shifted hence ZANU PF has retained his leadership.
These people want to keep us harassed in the hope that he will retire."
      Deputy Information Minister Bright Matonga reiterated the government's
position that President Mugabe would see his full term through, despite
rumours about his failing health and a deepening economic and political
crisis.
      "The issue of the President's retirement is not on the agenda at all.
President Mugabe's term expires in 2008. We don't have a crisis in our
government, we are a country under illegal sanctions from the west and no
one will tell us what to do in our country especially on issues concerning
our sovereignty. It is only the people who can do it.
      "We have a lot of people putting pressure on South Africa, but we have
a good relationship with South Africa and we cannot see them being dragged
into this," Matonga said.

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FinGaz

      Moyo gloats at confusion in ZANU PF

      Felix Njini
      6/23/2005 8:02:20 AM (GMT +2)

      FORMER information minister Jonathan Moyo this week played up the
confusion within ZANU PF, saying President Robert Mugabe's close lieutenants
were busy setting booby traps for each other as the succession battle hots
up.

      Moyo, a strident defender of President Mugabe and the ruling ZANU PF
in the past five years until his sacking from government earlier this year,
said the ruling party's old guard lacked the capacity to deal with the
succession issue, which has become a hot potato.
      President Mugabe has hinted at retirement in 2008, but has refused to
anoint his successor.
      "ZANU PF's old guard are unable to deal with this issue openly. As a
result, a lot of games are being played by the old guard, setting booby
traps for one another," Moyo said. "ZANU PF is a sunset party not only
because of the hot succession issue but also because it has been in power
for much too long and desperately needs to re-invent itself in order to
catch up with the rest of society and the world," he added.
      Moyo said despite ZANU PF's much celebrated increased majority in
parliament, an economy which is on its knees remains the party's biggest
challenge.
      ZANU PF, which has ruled Zimbabwe for the past 25 years, won 78 seats
out of the contested 120 seats in the widely disputed March parliamentary
poll. Moyo stood as an independent in that election and won the Tsholotsho
seat.
      "But ZANU PF does not know what to do with its huge majority because
it does not know how or why it got it," he said. "What was it for? For what
policy programme after the elections."
      ZANU PF spokesperson Nathan Shamuyarira refused to comment.
      President Mugabe sacked the former government spin-doctor last year
after he chose to stand as an independent candidate in his home
constituency, Tsholotsho in the March elections.
      Moyo had also been linked to a faction within the ruling party which
suffered a body blow in the run-up to the ZANU PF congress held in December
last year.
      The succession issue in ZANU PF, which threatened to split the party
ahead of its December 2004 congress, is expected to reach boiling point as
2008 approaches.
      The former government spin-doctor - who became a hate figure for
opposition groups for his abrasive style of politics - has previously
clashed with ZANU PF gurus, John Nkomo, Dumiso Dabengwa and Nathan
Shamuyarira among others and has instituted defamation proceedings against
Nkomo and Dabengwa.
      Moyo has hinted he would side with the opposition MDC in parliament.
      "I am there to support issues of development against a barbaric and
retrogressive government," Moyo said.
      "This is an inhumane, barbaric demolition of properties belonging to
the weak and poor in our society, who have been left homeless, jobless,
penniless and hopeless under a clean up slogan which is actually an
unmitigated mess up that has been badly formulated, badly implemented and
badly communicated," Moyo said.

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FinGaz

      RBZ intervenes in ZESA, Hwange row

      Chris Muronzi
      6/23/2005 8:03:34 AM (GMT +2)

      THE Reserve Bank of Zimbabwe (RBZ) has intervened to end the
long-running $95 billion debt dispute between government-controlled energy
firms Hwange Colliery Company and the Zimbabwe Electricity Supply Authority
(ZESA).

      Inside sources revealed this week that the central bank, which is
pushing for quasi-state and parastatal reforms, had cancelled Hwange's debt
under the productive sector facility, against the $95 billion the colliery
was owed by power utility ZESA.
      Corporate tempers between the companies ran high last year over the
debt, with ZESA threatening to sue Hwange for defamation over disclosure to
the media of matters pertaining to the debt.
      The government wholly owns ZESA, while holding a 40 percent interest
in the Zimbabwe Stock Exchange and London Stock Exchange-listed Hwange and,
in turn, dominating the board largely made up of government officials.
      While John Nkala, the marketing and public relations manager at
Hwange, could neither confirm nor deny the issue, saying he was bound by a
mutual accord signed last year between the two companies, ZESA corporate
affairs director Obert Nyatanga, confirmed the development.
      "We cleared our debt to Hwange through the Reserve Bank of Zimbabwe.
We have also paid for the May supplies and continue settling our debts,"
said Nyatanga.

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FinGaz

      Stocks sink deeper as money market firms

      Rangarirai Mberi
      6/23/2005 8:04:08 AM (GMT +2)

      STOCKS sank deeper this week as more investors ditched shares for the
money market, where real interest rates have turned positive for the first
time in three years, while the Zimbabwe dollar touched fresh lows at the
formal currency market.

      The Reserve Bank of Zimbabwe (RBZ) surprised the market by letting the
Zimbabwe dollar slip nearly 7 percent against the benchmark US dollar to
below the new diaspora rate.
      The Zimdollar sank to $9 499.51 at Monday's auction, below the $9 000
diaspora rate set only last month.
      Speculation swirled around the market that the central bank could let
the Zimdollar slide to $12 000 by the end of this month, but there has been
no official word on the speculation.
      On the stock market, the main industrial index opened the week down
1.7 percent and the losses spilt into Tuesday, shares falling 1.89 percent
Tuesday to 2 689 211.21 points in light volumes.
      There was firm support for two $200 billion Treasury Bills issued by
the central bank as the week opened, allotted at an average 150 percent,
setting an upward course for investment rates.
      A raft of largely flat earnings reports for companies with March
year-ends has failed to lift shares from the damage brought by last month's
rate hike, with companies having to report into an already bearish market.
      "There is very little out there that could help the shares go up in
any big way, at least not in the short term. As long as the money market can
guarantee positive returns, there will not be too many people willing to
take the risk on the ZSE," a fund manager said yesterday.
      However, more bullish analysts maintain that the ZSE will recover
soon, forecasting inflation to rise above money market rates within the next
quarter.
      Financials traded sideways with the wider market, discounting news of
share consolidations by two key banks, Kingdom Financial Holdings Limited
and FBC Holdings. However, NMB continued to take punishment from the market
for a huge annual loss for 2004.
      Although the bank had prepared the market for poor results, investors
have been unnerved by NMB's admission that its future is now down to a
planned rights offer and talks with a still to be named white knight.
      Kingdom yesterday opened $8 above its Tuesday close of $87 as the
market continued to react warmly to the financial institution's planned
10-to-1 stock consolidation. Kingdom has recently lagged behind most of its
banking peers in earnings and share price, and its share plan is an attempt
by management to shore up the bank's share.
      FBC Holdings was down a dollar to $54 Tuesday and opened flat
yesterday after the bank proposed a 5-to-1 share consolidation and a share
buyback in a strategy to cut a share overhang and boost its share price.
      FBCH has made several acquisitions over the past two years, buying
Southern African Reinsurance (SARE) and the Zimbabwe Building Society (ZBS).
The acquisitions have expanded FBCH's revenue streams, but the issue of new
shares for those buys has combined with weak share prices to attract
increased speculative trade in FBCH stock.

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FinGaz

      ZBH loses out on potential foreign currency earnings

      Audrey Chitsika
      6/23/2005 8:04:38 AM (GMT +2)

      STATE broadcaster, the Zimbabwe Broadcasting Holdings (ZBH), has lost
out on potential foreign currency earnings after producers of a lucrative
annual regional football tournament deemed its outside broadcast (OB) vans
obsolete.

      Sources told The Financial Gazette this week that the producers of the
Confederation of Southern African Football Federations (COSAFA) tournament
rejected the use of ZBH's OB vans because they have virtually disintegrated.
      "The OB vans are pretty much in shambles. The biggest problem is that
the equipment is old and most of it is in a state of disrepair," said the
source.
      Producers of the COSAFA tournament, sponsored by South African
Breweries through its Castle lager brand, had intended to hire ZBH's
equipment to cover local and regional matches under the tournament's changed
format but after inspecting the OB vans, decided the equipment was
antiquated.
      ZBH, which has long been plagued by problems relating to obsolete and
inadequate equipment, has recently entered into partnership with the Iranian
government, which has offered technical assistance and recently undertook to
digitalise the state broadcaster.
      "There have been internal discussions to see whether the Iranian deal
should also be directed at the OB facilities but at the moment, there are
more urgent matters that need to be tackled. It will take sometime before
these OB vans are upgraded or new ones bought," said the source.
      ZBH has two OB vans, one stationed in Harare and another in Bulawayo,
but due to frequent breakdowns, part of the equipment in the Bulawayo OB van
has had to be brought to Harare to augment the 8-camera OB van based in the
capital.
      Asked to comment, Zimbabwe Television chief executive Susan Makore,
said: "I don't know anything about that. All I can say is that our vehicles
are in use."
      Josephine Zulu, head of Sportnet, declined to comment, saying she did
not deal with matters involving equipment.
      ZBH has, along with many other parastatals, failed to operate viably,
a situation which has left the broadcaster lagging behind other modern
broadcasters in the region.
      The broadcaster frequently airs free but lengthy live state and ruling
party events, while eschewing advertising revenue from some potential
advertisers deemed to be politically incorrect.

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FinGaz

      Rejected constitution would have blocked evictions

      Nelson Banya
      6/23/2005 8:05:11 AM (GMT +2)

      WHOLESALE evictions of mainly urban denizens by the government of
Zimbabwe, which have created a humanitarian crisis and drawn widespread
local and international condemnation would have been declared
unconstitutional under the rejected 1999 draft constitution, masterminded by
the ruling ZANU PF.

      The draft constitution, over which the ZANU PF government received an
unprecedented thumbs- down in a February 2000 referendum, had, among other
freedoms, provided for protection against arbitrary evictions, in line with
the South African constitution, widely lauded as one of the most liberal in
emerging democracies.
      Whereas the declaration of rights in Chapter 3 of the Lancaster House
constitution currently in force is largely silent on social and economic
rights, the draft constitution sought to provide for the protection of the
weaker and poorer sections of the community.
      "A law may not permit anyone to be evicted from their home, or to have
their home demolished, unless an order of court, made after consideration of
all the relevant circumstances, has authorised the eviction or demolition,"
chapter 3, part 2 section 58 of the draft constitution reads.
      With such a provision in place, the hundreds of thousands of people
rendered homeless overnight through precipitous government action would have
stood the chance of at least buying time.
      A precedent exists in neighbouring South Africa-the highly publicised
Grootboom housing ruling.
      Section 26(3) of the South African constitution provides:
      No-one may be evicted from their home, or have their home demolished,
without an order of court made after considering all the relevant
circumstances. No legislation may permit arbitrary evictions.
      This constitutional provision gave rise to the enactment of the
Prevention of Illegal Eviction From an Unlawful Occupation of Land Act (PIE)
that regulates the rights enjoyed by land owners and occupiers (who do not
have consent to reside on land) in an urban context.
      Western Cape lawyer and provincial co-ordinator of the South African
Human Rights Commission, Ashraf Mahomed, who has also represented residents
affected by evictions, contends that the Grootboom case raised the question
of whether section 26 of the South African constitution (and possibly what
would have been section 58 of the Zimbabwean constitution) imposes a duty on
the state to provide temporary housing or shelter to persons in desperate
need.
      "This precedent-setting housing case inevitably began to chart a new
course for the judiciary in South Africa as it sought to give substantive
meaning to the socio-economic rights in the Constitution.
      "It allows for the evolution of constitutional thinking that impacts
on the economic and social disparities between the rich and the poor.
However, the extent to which individuals can rely on the judgment to obtain
individual relief when faced with situations of homelessness is still an
open question," Mahomed wrote in a review of the landmark ruling.
      Mahomed was a member of the Legal Resources Centre (LRC) team that
represented a group of Capetonians- 83 families of Valhalla Park, Cape Town,
who, according to the lawyers, were living in intolerable circumstances or
were truly homeless (two of them had been living in motor cars).
      At the time (2002), the waiting list for state-funded housing in Cape
Town was approximately 10 years, and increasing. Consultants to the City of
Cape Town identified a vacant piece of land in Valhalla Park as a possible
site for 'infill' housing.
      However, because of financial constraints, the municipality signaled
it would only be able to give it consideration in two years' time. The 83
families from Valhalla Park then occupied the open space in the face of
opposition from the council.
      Their lawyers contended that the homes they built there were built in
a "well organised manner."
      The council applied to the High Court for an order for the eviction of
the occupants of the land and the demolition of their homes. It contended
that the provisions of the law (PIE) were not applicable to this situation
and sought to invoke common law remedies.
      Alternatively, they argued that if the Act was applicable, the Council
was entitled to urgent interim relief under section 5 of the Act. In the
further alternative, they argued that if the Council was not entitled to
relief under section 5 of the Act, then a declaration should be made that
the relevant provisions of the Act are unconstitutional.
      The residents opposed this application, and brought a
counter-application for an order declaring that the Council's housing policy
failed to comply with its constitutional obligations as set out by the
Constitutional Court in the Grootboom case.
      The basis of this counter-claim was that the municipality had, at the
time of the legal battle, still not made special provision for truly
desperate or homeless people, despite the Grootboom judgment handed down in
October 2000. Instead, the residents argued, council continued to insist
that they must simply wait their turn on the housing waiting list.
      The counter-application raised major issues of significance that
include questions relating to: the housing list and the efficacy thereof;
integrated development planning processes; the rapid release of land; the
state's obligations in respect of people living in intolerable conditions;
and the state's positive obligation in respect of people who are homeless
and landless.
      On July 7 2003, Justice Selwyn Selikowitz of the Cape High Court
dismissed the application for eviction with costs and granted the residents'
counter-application with costs.
      The Court declared that the housing programme of the City of Cape Town
failed to comply with its constitutional and statutory obligations in that
it did not make short-term provision or any form of relief for people in
Valhalla Park who were in a crisis or in a desperate situation.
      Council also failed to give adequate priority and resources to the
needs of the people in Valhalla Park who had no access to a place where they
may lawfully live. In the allocation of housing, it failed to give any or
adequate regard to relevant factors other than the length of time an
applicant for housing has been on the waiting list, and in particular did
not have regard to the degree and extent of the need of the applicants.

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FinGaz

      Who should succeed Mugabe?

      Hama Saburi
      6/23/2005 8:05:58 AM (GMT +2)

      A PICTURE of President Robert Mugabe leaving the highest office in the
land at the expiry of his current term is one that raises a number of issues
about Zimbabwe's future after one of Africa's longest serving leaders.

      President Mugabe, undoubtedly the glue that binds the fractious ruling
ZANU PF party, has in recent years hinted at retiring in 2008 after a hectic
political career spanning over two-and-a-half decades at the helm but las
steadfastly refused to anoint his heir apparent.
      The veteran nationalist, who became the darling of European and
western states for his policy of reconciliation at independence in 1980
before being downgraded to villain after endorsing the violent land
seizures, had at one point opened the succession issue for discussion.
      He had to kill the debate, which he opened in April 2003, later in the
year after it had caused serious rifts within ZANU PF, a party now eager to
use its disputed two-thirds majority to prepare a safe retirement passage
for President Mugabe.
      Analysts said while internecine conflict within ZANU PF and its
protracted feud with the opposition Movement for Democratic Change (MDC)
might have prolonged the ageing Zimbabwean leader's stay in power, the time
has now come to revisit the succession debate.
      They said while President Mugabe might still want to pull the strings
behind the scenes, contrary to his public posturing, there was no denying
that pressing economic issues would influence the selection of the next
officer bearer.
      Zimbabwe's once-robust economy has sunk deeper into the woods, weighed
down by its poor international record that has triggered a flight of capital
to neighbouring economies.
      The malaise took a turn for the worse after the International Monetary
Fund withdrew balance of payments support in the late 1990s, ushering in the
worst economic crisis ever to visit the southern African economy.
      Eric Bloch, a Bulawayo-based analyst who believes Zimbabwe should go
backwards to the early 1980s when it used to have a prime minister and a
ceremonial President said whoever takes-over from President Mugabe should
refocus the people to ensure they work for the common good of the country.
      The officer bearer, the chartered accountant said, should also mend
the widening gap between Zimbabwe and the international community, which
Harare argues is a form of punishment for redistributing land from the white
minority to the landless majority blacks.
      "We need someone who is prepared to put the economy ahead of political
ideologies," he said.
      Political commentator John Makumbe said Zimbabweans should elect a
younger president for the high-pressure job who appreciates divergent views
from across the political divide.
      "It would be dangerous to have a political demagogue who says politics
is everything . . . politics should be responsive to economic dictates.
While politics can be played as a game, the economy operates strictly on the
truth," said the University of Zimbabwe lecturer.
      Bloch said the next leader should also work towards the recovery of
agriculture where tobacco production, which used to be the country's single
largest foreign exchange earner, has dropped from a record 220 million kgs
to 60 million kgs last year.
      He said the incumbent should also be prepared to act tough on the
bloated Cabinet and introduce proper fiscal controls to rein in perennial
budget deficits fueling the inflation scourge.
      "Our next President should be a combination of things - a politician,
a technocrat, a humanitarian and diplomat," he said.
      The succession issue is considered a hot potato within the ruling
party. Just a few years ago, it was taboo to even think about succeeding the
Zimbabwean leader, reviled by the west and Europe for allegedly trampling on
human rights.
      A number of ZANU PF bigwigs who dared stick their necks out in the
past were made to pay huge political prices for speaking their minds.
      Former ZANU PF secretary for administration Edgar Tekere is wallowing
in the political wilderness after he was expelled from the party in 1989 for
exposing the ruling party's plans to impose a one-party system that was to
entrench President Mugabe's rule.
      In 1998 former Masvingo legislator Dzikamai Mavhaire, who has since
bounced back into the provincial party structures, earned the President's
verbal venom when he suggested that it was time he called it a day.
      Despite being protected by of Parliamentary immunities and privileges,
the vocal Mavhaire was hauled before the party disciplinary committee and
slapped with a two-year suspension.
      The late Eddison Zvobgo, who had said he would contest for the top job
in the event President Mugabe stepped down, was also sidelined from the
party and government. At the time of his death, he was still to be summoned
before the party's disciplinary committee on charges that he refused to
campaign for President Mugabe in the 2002 Presidential election.
      The only time President Mugabe has come close to demystifying the
issue about his successor was when he laid down the criteria for his
successor in August last year, which virtually shuts out most of the young
Turks.
      "I look at the individual who will appeal to the people and who the
people would have chosen naturally as having the qualities of a leader. We
must have honest leaders. That comes first," he was quoted saying. "One,
naturally with a political record in the struggle, one who cherishes the
objectives and principles of ZANU PF, who is people oriented and
knowledgeable in other ways."
      A number of names have been thrown into the ring as possible
successors to President Mugabe. These include Vice-President Joyce Mujuru,
Speaker of Parliament John Nkomo and former ZANU PF secretary for
administration Emmerson Mnangagwa.
      Of late the names of Security Minister Didymus Mutasa, Defence
Minister Sydney Sekeramayi and former finance minister Simba Makoni have
also been touted among dark horses that could spring up surprises.
      Makumbe however, says President Mugabe is unlikely to leave in 2008,
adding the ruling ZANU PF was busy putting measures in place to ensure the
veteran politician continues in office until 2010.
      "He (President Mugabe) is not known for refusing such requests . . .
Mugabe cannot change the life of parliament to less than five years, but can
change the presidential term as long as it is an increase in the number of
years. He has in the past jokingly siad he will rule until he gets to 100
years," he said.
      Makumbe said while Mujuru might be the front-runner in the succession
race, the country's first woman vice-president was likely to face resistance
from the ZANU PF leadership, which believes in a patriarchal system that
militates against female leaders.
      "I cannot rule out Sekeramayi, Makoni and even retired general Solomon
Mujuru himself or Mnangagwa although I think he (Mnangagwa) is politically
damaged, but people in politics are known to come back from the grave," said
Makumbe.
      A study by the Brussels-based International Crisis Group warns that
Zimbabwe faces greater chaos and violence as President Mugabe's era draws to
a close unless the international community starts planning for a peaceful
transition to democracy.
      "The post-election situation may seem like business as usual, but
Mugabe's era is ending. Both ZANU PF and the opposition MDC now face
existential challenges," Peter Kagwanja, South Africa project director of
International Crisis Group says in the report. "The ageing of the old and
the conflicting ambitions of the would-be new ZANU PF chieftains, as well as
the growing frustration of what now has been a remarkably non-violent
opposition ensure that change of some kind is coming soon. Unless Zimbabwe's
friends get busy and get together, it is all too possible it will be violent
and chaotic," he says.

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FinGaz

      Inflation races higher

      Rangarirai Mberi
      6/23/2005 8:06:45 AM (GMT +2)

      INFLATION could turn sharply higher over the coming months, economists
warn, as they weigh the impact of last month's rate hike against a feared
boom in credit.

      Figures for May released by the Central Statistical Office last
Tuesday showed inflation at 144.4 percent, up 15.3 percentage points
year-on-year, the broadest recent advance in price hikes since a 24.1
percentage point rise took inflation to an all-time high of 622.8 percent in
January 2004.
      Month-on-month inflation rose 13.1 percent in May, just a percentage
point short of January's 14.1 percent rise.
      The central bank had apparently anticipated a rise, but perhaps not
the magnitude. Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono last
month gave a muted outlook on inflation in the immediate term, but still
remained bravely bullish for the long term.
      The RBZ is looking to slow inflation down to between 50 and 80 percent
by December, still a tough task despite it being a downgraded forecast from
the previous 20-35 percent.
      Despite the RBZ's optimism, many say the target will become that much
harder to hit if central bank does not immediately put a check on money
supply growth.
      The RBZ has predicted that monetary expansion will halve from 178
percent in January to 90 percent by the end of this year.
      This week, the government was scheduled to announce a plan to hand out
$1 trillion to people left homeless by "Operation Restore Order", a promise
that should alert RBZ to just where the inflationary hazards lie going
forward.
      "Government will obviously borrow to honour this latest act of
appeasement," one observer noted this week. State domestic debt is already
up four-fold this year at $10 trillion.
      Economists say government borrowing has been a strong driver of
inflation this year, and the RBZ is under pressure to tighten its purse
strings and curb the abuse of a raft of facilities for cheap lending.
      It is understood the RBZ has frequently yielded to government pressure
to hand over funds held for liquidity management. On one recent occasion, a
money market player has told The Financial Gazette, the government asked the
RBZ to convert $2.7 trillion worth of two-year treasury bills (TBs) issued
for money market purposes into ordinary TBs, at 70 percent, to fund state
spending.
      This meant the liquidity that had already been mopped up made its way
back onto the market, and the RBZ had to tie it up again in fresh TBs.
      Last month, Gono agreed that restraining money supply would be key to
taming inflation.
      "Successful reduction of inflation to low and stable levels demands
that, over the medium to long term, the country's money supply aggregates
grow at levels that are consistent with real economic activity," Gono said.
      Raising the key bank rate 65 percentage points to 160 percent, Gono
said the hike had come "on the back of the high upside risk on inflation
envisaged over the outlook period".
      Gono's rate hike won widespread market support, but analysts said the
intended impact of curbing speculative buying of assets would be offset by
the effects of uncontrolled credit expansion.
      The RBZ, the analysts said, should therefore back the rate cut with
restraint in its policy of handing out cash to parastatals and councils
under its strategy to save them from collapse.
      The RBZ last week began raising the $10 trillion it pledged for
parastatal reform.
      It is widely feared that state enterprises, debt-laden and crippled by
inefficiency, may use the funds to pay off debts instead of boosting
production as intended.
      Several firms have been accused in the past of abusing the productive
sector facility (PSF), a fund introduced by the RBZ to provide cheap funding
to manufacturers. However, other firms have said in their financials that
the PSF had protected them from potentially damaging finance charges.
      The RBZ will begin calling back PSF funds next Thursday.
      The RBZ had funded the PSF from an increase in bank statutory
reserves, looking to mop up excess liquidity and curtail speculative
activity. However, the same cash found its way back onto the market as the
central bank has used those reserves to supply concessionary lending to
troubled firms.

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FinGaz

      Tsunami fund needed

      6/23/2005 8:13:46 AM (GMT +2)

      EDITOR - I'm worried about what this nation has become in a few weeks.

      I hope the goverment would just create another "Tsunami trust fund"
for the thousands of Zimbabweans that have been rendered homeless.

      Leeroy
      New Zealand

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FinGaz

      A nation of refugees

      6/23/2005 8:16:14 AM (GMT +2)

      EDITOR - When Operation Murambatsvina began most of us thought that at
last the government had decided to heed the international community's calls
for it to restore order and the rule of law in Zimbabwe. But alas, this was
not to be.

      Once again, the governement has plunged into a disaster that is likely
to take years to sort out. Surely, there must be something wrong with the
people advising the government.
      The whole issue of "illegal structures" has been blown out of
proportion once again, just like the seizure of farms yester year. It is
hard to believe that the government has reached the extent of forcing people
to demolish tuckshops that are within their own yards knowing fully well
that these are their only means of survival - this a stomach-churning
catastrophe!
      Surely the people of Zimbabwe need to think long and loud about this.
Is it sheer arrogance on the part of government or is it that Zimbabweans
have been too submissive and in the process emboldened the government to do
whatever it likes with them?
      Surely a whole nation cannot be turned into refugees overnight. Only
last year the government was on the forefront of encouraging people to
venture into self-help projects, but just as the people thought they had
escaped the poverty trap, they suddenly find themselves on the receiving end
from the same people that had encouraged them to build the shacks in the
first place.
      This is really disgusting, especially this coming at a time when the
government is trying to rally Zimbabweans behind its economic turnaround
programme.
      Zimbabweans in the diapora, meanwhile should be prepared to chip in
with the much needed help to alleviate the suffering of common people. I
should like to apologise to the generality of Zimbabweans and your readers
for my choice of words in this article but there is no other way to describe
what this government is doing to its own people other than "evil". Where is
the UN at this hour when it is needed most?
      Time is not on Zimbabweans' side as some are threatened with
starvation and exposure to the elements.
      Zimbabwe might not hae oil, but it surely has the most precious of
things - life!

      Rodgers Svovah
      Leeds, UK

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FinGaz

      Ground to a pulp

      6/23/2005 8:17:23 AM (GMT +2)

      EDITOR - Our beautiful country is being ground to a pulp.

      Why? Could someone please explain to all of us Zimbabweans and the
concerned world what the agenda is?
      I am sure the people of Zimbabwe have a right to know, especially
since they are the ones who are paying taxes to keep the government where it
is. Come on Zimbabweans. it's time to wake up know. I am sure the government
would not treat a foreigner as badly as this.
      Stay strong fellow Zimbabweans as we are with you all the time.

      Lionel Naidoo
      Australia

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FinGaz

      AND NOW TO THE NOTEBOOK....

      6/23/2005 9:34:39 AM (GMT +2)

      Translators
      Italians have one funny saying which, when translated, means a
translator is a traitor.

      A colleague from one staid Sunday publication at the weekend thought
he was being resourceful by appointing himself to the dubious post of
"public interpreter" with the intention of interpreting the meaning of one
of CZ's recent articles. Yes, once in a while CZ exercises his right to
speak with a folded tongue and someone thought they could come handy to
unravel the riddle and in the end . . . guess what the fellow achieved?
Advertising the dangerous levels of his own ignorance!
      So CZ has become an institution of some sort, hasn't he? Otherwise
what would explain all this fuss about some barren journo colleagues making
it their business to try to interpret things that are clearly way above
their heads . . . moreso when they choose to read paragraphs from bottom to
top and from right to left . . . obviously they won't decipher anything to
justify their self-styled roles as public interpreters!
      For the record, the army tortured Mark Chavunduka and Ray Choto in
1999 after a story about a putative coup attempt. The marriage incident that
the scatter-brained colleague referred to involved other journalists from
another newsroom altogether several years previously. It is also important
to note that Mark and Ray were not "allegedly tortured", they were actually
tortured and the state has since compensated them.
      Can one be considered difficult if they were to wonder what else in
the story cannot tote up?
      Hopefully, the "analysts" and "commentators" quoted in the masterpiece
are not his own creations . . . like Diedrich Knickerbocker's Rip van
Winkle, Ruth Rendell's Chief Inspector Wexford or Sir Arthur Conan Doyle's
Detective Sherlock Holmes.
      Here is what we mean: Suppose Pius Ncube demanded to know the "one
analyst" who said he is praying and fasting for the worst to happen to the
Great Uncle, would this creative journo be at liberty to name him or her? If
he were to be asked to bring those dubious "analysts" in the flesh, would he
able to do so . . . and even get them to repeat the tripe they were
curiously quoted as saying?
      The long and short of the matter is that the whole article was based
on imaginations going haywire. Period!
      Small wonder why the publication in question will need all other
papers to close shop first before it can be considered a paper of record!
      This is CZ's Notebook. Take extra care.
      cznotebook@yahoo.co.uk

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FinGaz

      Zisco's Hwange debt balloons to massive $110 billion

      Chris Muronzi
      6/23/2005 8:08:14 AM (GMT +2)

      PERENNIAL loss-maker Zimbabwe Iron and Steel Company's (Zisco) debt to
listed mining giant Hwange Colliery Company (HCC) has ballooned to over $110
billion amid reports that the company has been failing to service its debt
since last year.

      Inside sources this week told The Financial Gazette that Zisco, which
was ditched by Shougang International Trade and Engineering Corporation of
China in a deal that would have seen the injection of a US$200 million
lifeline in working capital, is under pressure from HCC to retire its debt.
      Zisco, whose production output has dipped to rock bottom levels, has
entered into a pre-financing deal with its customers, a move the company
says will boost production.
      HCC marketing and public relations manager John Nkala could not be
drawn into commenting on the issue but confirmed that his company was owed
billions of dollars by its major customers.
      Parastatals like the Zimbabwe Electricity Supply Authority (ZESA) and
Ziscosteel, are some of its major customers.
      "I am not in a position to comment on those issues," said Nkala.
      Inside sources in the colliery company however, indicated that the
Zisco debt issue has been the subject of heated debate in recent weeks.
      Should the HCC continue to charge interest on the debt, fears are that
it could reach unsustainable levels judging by Zisco's cash position.
      Zisco boss Gabriel Masanga also refused to comment on the debt issue.
      Last year, Hwange was embroiled in another dispute with power utility
ZESA, prompting ministerial intervention. The failure, by state-owned energy
and industrial enterprises to pay for coal supplies has seen Hwange - 40
percent controlled by government - failing to live up to its potential.
      The Reserve Bank of Zimbabwe denied Zisco concessionary funding under
its productive sector funding (PSF) facility last year after the steel
producer's books were found to be in poor shape. Turnaround efforts at the
company have failed to take place despite strong recommendations from
government that the management and board of the state-owned firm be fired to
facilitate its swift transformation back to profitability.
      Zisco needs about 1200 tonnes of coal a day although it is operating
at below 50 percent capacity. When fully operational, the steel giant can
take up to 2 000 tonnes of coal in the same period.
      The steel giant has the capacity to produce one million tonnes of
steel annually but has lost some of its markets in East Africa and Europe.

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FinGaz

      Industry braces for ZESA hike

      Felix Njini
      6/23/2005 8:08:50 AM (GMT +2)

      ZIMBABWE'S business sector, wallowing in misery as output continues to
plunge, is bracing for a massive 600 percent tariff hike by the national
power utility, the Zimbabwe Electricity Supply Authority (ZESA).

      Industry players said business executives had become jittery amid
reports that ZESA approached government seeking approval to hike tariffs by
nearly 600 percent.
      Analysts said this would deal a death blow to industry, particularly
the manufacturing sector, whose capacity has been reduced to 40 percent.
      A myriad of problems ranging from fuel to foreign currency shortages
and sky-rocketing production costs are wreaking havoc on some companies'
operations threatening the survival of the country's industry which is
already on its knees.
      Although no official comment could be obtained from ZESA, sources said
the financially-handicapped parastatal was battling to make up for its poor
cash flows by coming up with "economic" tariffs.
      Analysts however, said raising tariffs by such a margin could prove
disastrous to industry and the general public.
      The mining industry, a heavy consumer of energy, could be hard-hit by
such a massive tariff hike, at time when it is already reeling under rising
production costs and foreign currency shortages.
      Analysts also said hiking the prices of energy could trigger another
flurry of prices increases, further reducing consumer spending and worsening
the plight of ordinary Zimbabweans.
      With inflation currently at 144.4 percent and rising, any hike in the
price of energy might fuel inflationary pressures. Analysts have forecast
inflation to cap the year at around 200 percent.
      Inflation, which topped 622 percent at the beginning of 2004, has long
been considered the country's number one enemy.
      Zimbabwe National Chamber of Commerce (ZNCC) president Luxon Zembe
said a hike in power charges would trigger fresh price increases.
      Electricity is a major cost factor in production.
      ZESA has previously highlighted that it is facing critical shortages
of foreign currency and was currently sub-levying rates due to pressure from
both industry and government.
      The government dithered on an earlier proposal from ZESA to hike
tariffs by 150 percent early this year. ZESA has also been facing
constraints in maintaining transmission and distribution networks.
      The authority, which has failed to attract meaningful investment in
its power generation plants, is still using antiquated equipment resulting
in frequent breakdowns and unreliable power supplies.
      Industry has on the other hand levelled accusations of malfeasance
against ZESA citing debilitating power cuts.
      "A 600 percent energy hike would result in a massive increase in
operating costs and this will be factored in to the consumers," Zembe said.
      "This would actually worsen not only the plight of consumers but
industry as well which is operating at around 30 percent," he said.
      Zembe said his organisation had written to ZESA seeking clarification,
but had not received any response.

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FinGaz

                  Clean-up should extend to environmental protection

                  Allen Choruma
                  6/23/2005 9:36:36 AM (GMT +2)

                  THE current clean-up operation code named "Operation
Restore Order" should be extended to include environmental protection and
conservation.

                  Despite having some of the most comprehensive
environmental protection laws and regulations on the African continent,
Zimbabwe has not done its utmost when it comes to environmental protection
and conservation. The level of environmental damage is alarming to an extent
that corrective measures should be taken before the situation deteriorates
even further. I have highlighted below some of the major environmental
degradation issues based on my personal observations.
                  Deforestation
                  In Zimbabwe most forests have simply vanished and the risk
of aridness is very high. What are left in most parts of the country are
clear patches of land where one can even see the colour of the soil from a
distance. This is typical to both rural and urban areas.
                  In urban areas, for example, the once preserved green
belts have vanished, paving way for housing and industrial developments.
Urban citizens have also contributed their part by clearing vast tracts of
land for illegal cultivation. One needs to drive through the hilly areas of
Warren Hills, Warren Park and New Marimba Park in Mufakose to witness the
extent of deforestation in urban Harare. The once forested hills in these
areas now stand bare and desolate.
                  Siltation
                  Most rivers and tributaries around the country are filled
with mounds of sand and loose stones. Only trickles of water can be observed
right in the middle of what once upon a time used to be big rivers. The
major causes of siltation are: deforestation, river bed cultivation,
overgrazing, illegal gold panning and so on. During the summer season rain
simply washes all the top soil and deposits it in the rivers, turning them
into sand baths. The Save River, for example, is one of the most heavily
silted rivers in Zimbabwe. The river has sand dunes from its catchment area
in Mashonaland East province all the way to the Mozambican border as it
heads to the Indian Ocean. This has impacted negatively on acquatic life and
vegetation along rivers.
                  Atmospheric pollution
                  Atmospheric (air) pollution has reached alarming levels in
urban and peripheral urban areas. During morning and evening commuting thick
clouds of smoke and smog can be seen covering the highways, industrial sites
and even some residential urban areas. The major culprits are automobiles,
especially trucks and commuter omnibuses, factories, industrial plants and
thermal power stations. Members of the public have also been causing a lot
of air pollution due to fires and burning of refuse in neighbourhoods.
                  The cement factories are some of the most visible major
pollutants in urban areas. One wonders if they have emission licences,
considering the possible effects of their emissions on the quality of
ambient air. A visit to Mabvuku in Harare and Cement Side in Bulawayo bears
testimony of how serious the air pollution is. The cement dust belched from
the dirty factory chimneys have turned the green vegetation dusty white and
destroyed a lot of vegetation. The air pollution from these factories is so
extensive that it poses a serious health hazard to the people working and
living around them.
                  Water pollution
                  Most of our rivers and dams have been turned into dumping
areas by some chemical companies. Some chemical plants have simply resorted
to discharging their waste into our rivers and dams. Manyame and Mukuvisi
rivers within the Greater Harare environs have been reported in the media
countless times as victims of water pollution mostly from chemical
factories, raw sewerage discharges and also from illegal activities which
include dumping of refuse by members of the public.
                  Refuse dumps
                  Open refuse dumps are now a common site in urban areas.
People have resorted to wanton dumping of refuse in open spaces as a result
of the local authorities' ineptitude to collect refuse. Open refuse dumps
set up by local authorities pose serious environmental pollution problems,
not to mention the stench emitted. These refuse dumps are also a serious
health hazard as some are located in the proximity of residential areas. The
Warren Hills open refuse dump in Harare is an example.
                  Environmental protection is not the responsibility of
government alone. In this article I will highlight the role that the
government and companies (including parastatals) should play in
environmental protection.
                  Govt and local authorities
                  The government should take the leading role in championing
environmental protection and conservation by mobilising its resources and
other apparatus to enforce compliance with existing laws and regulations on
environmental protection. The Environmental Management Act Chapter 20:27, is
a very comprehensive piece of environmental legislation. The Act provides
for the sustainable management of natural resources and protection of the
environment, the prevention of pollution and environmental degradation,
among other things.
                  The government, through the Ministry of Environment and
Tourism, should strictly enforce provisions of the Act as part of the
clean-up operation.
                  The minister, in terms of section 133 of the said Act,
should by statutory instrument assign to local authorities' i.e. urban
councils and rural district councils some functions under the Act for the
purpose of managing the environment within their areas of jurisdiction.
                  Environmental courts
                  To demonstrate its seriousness on environmental
protection, the government should consider setting up Environmental Courts
in each province. These would be specialised courts which would prosecute
environmental violations. Apart from speeding up prosecutions of violators,
the courts would also act as a deterrent to would-be offenders.
                  Good corporate governance
                  Companies, including parastatals and state enterprises,
should recognise that their activities in one way or the other have an
impact on the environment.
                  Where possible, companies should exceed the minimum
standard of environmental protection enshrined in the Environmental
Management Act and other legislation. Regulatory authorities like the
Zimbabwe Stock Exchange should go a step further to check if listed
companies are indeed complying with environmental laws.
                  Good corporate governance requires companies to publish
Environmental Policy Statements which provide a framework for developing and
reviewing environmental objectives and policies. The key environmental
protection issues to be covered in such statements relate to environmental
management policies and procedures which include the following: recycling of
waste, use of energy saving equipment, clean energy investments i.e. low
carbon use, use of renewable resources i.e. geothermal, solar and wind, use
of hybrid low carbon emission vehicles (transport companies), reduction of
green house gas emissions and so on.
                  Company or listing laws should require companies to
publish Environmental Protection Statements as a matter of good corporate
governance. Companies which exceed a certain threshold in terms of turnover
and market capitalisation should be made to comply with the Zimbabwe
Standard Association SAZ ISO 14001: 1996. This environmental management
system specification is intended to provide organisations with elements of
an effective environmental management system which can be integrated with
other management requirements to assist an organisation meet its
environmental and corporate goals.
                  In conclusion, environmental management should form part
and parcel of the current clean-up operation and all stakeholders should all
take part in the environment clean-up exercise.
                  --- Allen M. Choruma is an independent researcher and
writer on corporate governance. He can be contacted on e-mail:
allenc17@juno.com

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FinGaz

      Sadistic streak evident in clean-up operation

      6/23/2005 9:35:56 AM (GMT +2)

      THE government's nationwide demolition spree, euphemistically
code-named Operation Restore Order or Murambatsvina, has continued to be the
dominant story in the local press.

      Over the last weekend, two Sunday papers highlighted two aspects of
the widely condemned man-made tsunami whose real objective has not
crystallised despite the voluminous official rhetoric that has exploded
since the exercise began.
      Am I the only one who is still as confounded as I was on day one as to
what the government's real motives are for inflicting such pain and
suffering on its own people? Hygiene, the search for criminal elements,
hoarded goods and foreign currency and the need to restore the capital city,
Harare, to its "Sunshine city" status were initially given as the reasons
for the merciless clampdown on street vendors and informal traders.
      However it did not take long for it to become abundantly clear that
government had an endless list of agendas it needed to pursue in one fell
swoop under the all-encompassing smokescreen of Operation Restore
Order/Murambatsvina.
      What began as an exercise to spruce up the capital city soon spread to
other towns, farms and rural areas. The operation has also mutated in terms
of focus in that anything can now be targeted - office buildings, flats,
backyard garages and structures that thousands of urban dwellers have called
home for years.
      The cause of my befuddlement and that of many other concerned citizens
stems from failure to understand why government has to resort to this
heavy-handedness to introduce changes "if these are well thought out
policies designed to improve the lot of those affected. The gross
insensitivity shown so far leaves the people of Zimbabwe wondering whether
they should view any new government initiatives with trepidation because of
the punitive and totalitarian manner in which they are imposed and
implemented.
      The events of the last few weeks leave me no choice but to conclude
that there are some people with a sadistic streak in government who get
pleasure from humiliating and inflicting maximum pain on fellow human
beings.
      An official response to a story published in a Sunday paper last
weekend to the effect that the ongoing clean-up exercise had caused a split
within the ruling party gives an idea of what is considered important.
      "It's not true, those are lies. We are strongly united in our efforts
to make Zimbabwe a clean and safe environment", roared Didymus Mutasa, the
Minister of State for National Security when asked to comment on the
differences of opinion. The decision to embark on the exercise had been
unanimously taken at cabinet level, Mutasa stressed, before accusing the
publication of "always making noise about the rule of law and when we use
the law you make unnecessary noises."
      He did not say which laws he was referring to which obliged the
government to deprive hundreds of thousands of people of their livelihood
and then rub salt into their wounds by demolishing their homes, exposing
them to the elements in the middle of winter. It would be good to know
chapter and verse of these laws that require government officials to be so
callous and hard-hearted in enforcing rules or regulations that we all know
are not written in stone.
      Mutasa seems to believe that because decisions are made unanimously in
cabinet, that, per se, means they cannot be questioned or challenged. He
needs to be reminded that a government that is responsive to the needs and
aspirations of the people is prepared and required to listen to opposing
views. It should be prepared to revisit and adjust its own position if its
decisions and actions are rejected by the people as wrong and unjust.
      Speaking with one voice that results in the subordinating of the
interests and welfare of the people to the intransigence of an arrogant
ruling elite is not something to be proud of as Mutasa seems to think.
      It is incredible that the minister thinks any reasonable person can
believe that it is possible for members of the ruling party to see eye to
eye on every issue for 25 years. This is the impression that Mutasa and
other ZANU PF stalwarts want to give when they shout down or ridicule anyone
who hints at any differences of opinion.
      Instead of accusing the Sunday paper referred to above of telling
lies, Mutasa should have responded to the statements made by members of his
own party in interviews with the publication. The critics included a
politburo member who described the random destruction of homes and flea
markets in the prevailing economic environment of rampant poverty and
unemployment as "absolute madness."
      As if to drive home the point that things cannot be as rosy as Mutasa
tried to have the nation believe, another Sunday newspaper carried a story
suggesting that the head of state, President Robert Mugabe, was not entirely
pleased with the way things have gone since Murambatsvina was launched about
a month ago. In particular, he was said to be so irked by the
hard-to-conceal negative effects of the operation that he had tasked
Vice-President Joice Mujuru to follow up on the matter.
      This newspaper report indicated that six committees with members drawn
from six ministries would be responsible for tackling various components of
the operation. What I have also found puzzling about these developments is
that the Ministry of Policy Planning and Implementation does not feature
anywhere. One would have thought that formulating people-oriented policies
and overseeing their humane implementation was Cde Webster Shamu's baby.
Where are you when the nation needs you, Cde Shamu?

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If you would like to add your names to a petition against the NZ cricket
tour of Zimbabwe go to http://www.saynotozimtour.com/

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VOA

      Bulawayo Churches Resist Pressure to Turn Out Displaced
      By Patience Rusere
      Washington
      23 June 2005

Bulawayo churches have staved off attempts by police to move homeless people
in the care of the city's congregations to a new holding facility at
Helensvale farm in Bubi-Umguza - at least until adequate facilities are
established there.

A source close to the situation said police earlier ordered churches to
evacuate those they were sheltering, but church leaders refused to carry out
the order. The churches eventually agreed with ministerial and provincial
officials that they could continue hosting the homeless until suitable new
accommodations were set up.

About 3,000 people have found shelter in eight church buildings, church
sources in Bulawayo said. Most of these displaced people originally came
from the Ngozi and Killarney squatter camps, from which police had driven
them out.

The Zimbabwe Red Cross and UNICEF have agreed to provide tents in which the
internally displaced can be sheltered, a Bulawayo churchman said.

Pastor Lucky Moyo of Bulawayo, a member of the relief committee set up by an
alliance of churches in the city, told reporter Patience Rusere of VOA's
Studio 7 for Zimbabwe that Bulawayo Governor Cain Mathema and the Department
of Social Services were parties to Thursday's agreement on assistance.

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VOA

      Displaced Families Moved to Holding Camp North of Bulawayo
      By Babongile Dlamini
      Washington
      23 June 2005

Studio 7 has learned that authorities moved a number of former residents of
the Killarney squatter camp near Bulawayo to a holding camp north of the
city in the Bubi-Umguza district. Humanitarian sources said the camp was set
up to shelter those made homeless by Operation Murambatsvina. But officials
warned that the facility is only temporary and not large enough to hold all
those needing shelter.

Reporter Babongile Dlamini of VOA's Studio 7 for Zimbabwe filed a report.

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