Mugabe, Zanu courtiers move to crush dissent

http://www.timeslive.co.za

ZOLI MANGENA | 10 September, 2009 12:01

President Robert Mugabe and his close courtiers in Zanu-PF are moving to
crush dissent and plots to force the ageing and ailing leader to quit and
allow the party to field a new candidate in the next elections.

Insiders told the Sunday Times that was partly why senior party official and
Deputy Minister of Labour and Social Welfare, Tracy Mutinhiri, was expelled
this week - because she was encouraging unacceptable criticism and dissent
over Mugabe's age and health as a candidate in the next elections.

In a sign of growing intolerance to criticism within Zanu-PF and a renewed
crackdown on internal dissent, the politburo on Wednesday expelled Mutinhiri
for saying Mugabe, 87, was "too old" and has nothing to offer anymore.

Zanu-PF will hold its annual conference from December 6 to 10. Mugabe,
despite internal opposition, is expected to be endorsed as the party's
candidate when the elections are eventually held next year or in 2013.

According to the Zanu-PF constitution, one of the functions of the
conference is to "declare the president of the party elected at congress as
the state presidential candidate of the party".

Although Mugabe was confirmed as the presidential candidate in Mutare last
year, he needs to be endorsed again in December at the conference, which
will be held against a background of renewed infighting within the party
following the recent mysterious death of retired army chief General Solomon
Mujuru.

Mujuru's wife Joyce, who is the vice-president, threw down the gauntlet this
week, saying she would not be intimidated by what her family considers as
the murder of her husband.

"I always ask myself how I am going to do the things that my husband was
doing. However, I believe God is going to show me the way. A real soldier
should not be found with a bullet at the back. If you are found with a
bullet at the back it means that you were shot while running away," she said
on Tuesday. "A real soldier should be found with a bullet in the front to
show that you were fighting. That is what I have decided to do."

Her main rival is politburo member Emmerson Mnangagwa. Their fight to
succeed Mugabe is likely to render them both vulnerable.

Mutinhiri, the MP for Marondera East, ran into problems with her party after
she and MP for Goromonzi West Beatrice Nyamupinga were accused of betraying
Zanu-PF by voting for MDC-T candidate for speaker of parliament, Lovemore
Moyo, in March. Moyo routed Zanu-PF chairman Simon Khaya Moyo in the contest
with the support of a few MPs from Mugabe's deeply-divided party.

Since then, Mutinhiri and her allies have been subjected to a witch-hunt.
However, she was made an example of because of her outspokenness and
criticisms of the party.

Mutinhiri, the mother of model and Big Brother Amplified TV reality show
participant Vimbai, recently had her farm invaded by war veterans who wanted
to seize it. They accused her of betraying Zanu-PF by sympathising with the
MDC-T.

She now risks losing her parliamentary seat, ministerial position, farm and
benefits. To make matters worse, Mutinhiri, besides being accused of
indiscipline, was also attacked within Zanu-PF for allegedly having a love
affair with Mugabe's bitter rival, Prime Minister Morgan Tsvangirai.

The accusations are said to have angered senior party officials, including
Mugabe, who view Tsvangirai not just as a political rival, but as an enemy.

For her alleged association with Tsvangirai and the MDC-T, Mutinhiri was
accused of "supping with the devil" and embarrassing and undermining Mugabe
and the party.

Until her expulsion, she had been fighting back, accusing Zanu-PF of trying
to unleash the dreaded state security agency - the Central Intelligence
Organisation (CIO) operatives - to kill her and dump her body in the Wenimbe
dam, "like they did to hundreds of innocent people who were suspected MDC
supporters in June 2008".

Children suffer at orphanage

http://www.thezimbabwean.co.uk/

Life for children at Shearley Cripps orphanage is due to change following
threats by Bishop Nolbert Kunonga’s parishioners to evict the sisters
running the home and replace them with their own.
02.09.1101:37pm
by Fungai Kwaramba Harare

Orphans have been left uncared for while sisters at the Shearley Cripps
orphanage have been under threat. Orphans have been left uncared for while
sisters at the Shearley Cripps orphanage have been under threat.

Afraid of the wrath of Kunonga’s followers who are now armed with a court
order in their favour, the sisters have been locking themselves in their
rooms, leaving children as young as six months without care givers.

“An orphanage in Chikwakwa has been invaded by Kunonga’s followers and there
are five nuns who are scared of what will happen if Kunonga takes over the
orphanage so they have been locking themselves up,” said Reverend Clifford
Dzavo, Secretary of the diocese of Harare.

The Anglican Church fear that Kunonga could replace the sisters with people
who are not trained to look after children. There are also concerns that if
the orphanage falls into the wrong hands, it would fall into a state of
disrepair.

Kunonga who is now legally in charge of the Anglican church properties after
a Supreme Court ruling, is accused of allowing schools and crèches to be run
into the ground.

Dzavo said that last week an application to the Constitutional Court to
reverse the Supreme Court ruling was motivated by the fact that the Supreme
Court failed to protect them and their rights to appeal were not considered.

“We are supposed to be protected by the law. Kunonga does not have a right
over the church investments. He has approached a number of investments
trying to get money and we fear that he could strip them,” said Dzavo.

Zesa justifies tariff hike

http://www.dailynews.co.zw

By Everson Mushava, Staff Writer
Sunday, 04 September 2011 16:24

HARARE - Zesa holdings says its operations will be severely crippled to the
extent of a gradual shutdown if it is forced to reverse the new tariff
hikes.

The power utility said the new rates were the only way it could sustain its
operations.

Addressing a press conference in Harare yesterday, Zesa chief executive
officer Josh Chifamba said the power utility’s infrastructure had collapsed
and with “sub-economic” tariffs, Zesa risked a gradual shutdown.

He said Zesa needed to do a lot of maintenance work on its infrastructure
saying if that is not done, the power supply situation in the country will
further worsen.

“If we do not do anything to improve the supply of electricity now, we will
not be able to respond to the user demand in the near future as industry
regains.

“The cost of doing nothing means people will have to go back to the use of
diesel.

“We are bold enough to tell Zimbabwe that we had to increase the tariffs to
improve the supply of energy in the near future."

“If nothing is done now, there will be more loses to the economy due to loss
of revenue when there is no electricity,” said Chifamba.

Zesa introduced a 31 percent increase on tariffs which came into effect at
the beginning of this month.

The increase has so far faced resistance across the body with civic groups
and business organisations threatening to mobilise a massive boycott of rate
payments until the decision is reversed.

The Confederation of Zimbabwe Industries (CZI) and the civic society groups
led by the Combined Harare Residents Trust (CHRA) have also threatened to
take on Zesa to force a rethink on tariffs.

The groups argue that Zesa’s rate hike was unjustifiable given its poor
service record, which has seen many households and industries around the
country spending considerable time in the dark.

The Minister of Energy and Power Development, Elton Mangoma has since
defended the new rates saying they were approved by Cabinet and are
necessary to finance infrastructural development.

Chifamba said even if Zesa was to be dragged to court that will not help
because the only way to find a permanent solution to the crisis was to
effect sustainable rates.

The power utility boss said the country needed 2 100 megawatts per day but
was currently producing 1 300 megawatts, 600 megawatts short of the required
output.

He said he hopes that the supply of electricity will improve after Zesa has
completed refurbishment work at Hwange and Kariba power stations.

These two have a capacity to produce 600 and 300 megawatts respectively.

Chifamba said Zesa needed close to $2 billion to complete the refurbishments
at the two power stations.

“We know the anger within the people over the new tariffs. We are aware of
the pain but what do we do? We should also look at the long term gains,” he
said.

“There is a humane face in what we are doing. That is why we are
distributing six million units of energy saving bulbs to households.”

Chifamba said the power utility will by the end of September install a more
reliable billing system in Harare and Bulawayo and promised to cover the
whole country by December 2011.

“By the end of this month, billing problems will be a thing of the past in
Harare and Bulawayo,” he said.

Zesa is owed $449 million by consumers, government and business.

Of the $449 million, 46 percent was by household consumers, 10 percent by
the government and over 30 percent by the industry.

Grace Hoodwinked

http://www.timeslive.co.za/

SUNDAY TIMES CORRESPONDENT | 04 September, 2011 01:55

President Robert Mugabe's family could lose their luxurious $7-million
mansion in Hong Kong, as the shadowy Chinese businessman whom they fronted
to purchase the house for them four years ago is refusing to hand over the
title deeds.

Highly placed government insiders say businessman Ping Sung Hsieh reportedly
sweet- talked First Lady Grace Mugabe into buying the house in his name
after convincing her that the media would "blow apart" the issue if the
house was put in the First Family's name.

But Mugabe and Hsieh, who claims to be a close business associate of the
Mugabes, have since fallen out over a botched trucks deal in which Grace is
claiming that the businessman, now living in neighbouring SA, stole
$1-million from her.

Hsieh, through his lawyer Mannie Witz, confirmed early this year to the
Sunday Times that he had business dealings with the Mugabes and claimed they
had fallen out after "some deals went sour".

Grace, through her aide, top police officer Olga Bungu, claimed that they
sent the money to Hsieh in SA to buy the trucks but he never delivered them,
and efforts to have the controversial businessman extradited failed in the
South African courts three weeks ago.

The Sunday Times has been told that Grace and Hsieh were "strong" business
partners and the First Lady ended up trusting him, resulting in the Hong
Kong house deal.

Grace and her daughter Bona lived in the house in an exclusive complex when
both were studying at a Chinese university. Grace is now back in Harare
while Bona is pursuing further studies in Singapore.

The house deal is said to have caused fissures within the First Family, as
some of the deals between Grace and Hsieh were said to have been done
without Mugabe's knowledge.

Insiders told the Sunday Times that Grace was also involved in a mining
joint venture with Hsieh in the Midlands province which her husband was not
aware of.

Said an insider: "Grace is desperate to have Hsieh arrested in Zimbabwe as
she has been fleeced on several occasions by the guy she trusted so much.
The $1-million is not the real reason why she wanted Hsieh extradited - it
is the Hong Kong house deal which has agitated her. She was naive enough to
allow a foreigner to get hold of title deeds and now she has no control.

"Hsieh is now telling her to go to hell. She has no evidence that the house
belongs to her because it's in Hsieh's name. When Mugabe heard about it he
was very angry, he could not believe that the wife could enter in such a
deal. That is why the system in Zimbabwe tried to use security structures in
SA to get Hsieh arrested but they failed.

"Even President Jacob Zuma was made aware of the issue and made inquiries
with Zimbabwean authorities to find out what was happening. Grace has been
advised to keep it low and quit chasing Hsieh because it will expose her and
embarrass the old man (Mugabe). But she is still hoping to get the Chinese
businessman.

"Grace could also grab his share-holding in the gold mine in the Midlands to
compensate herself," said the insider.

Witz could neither confirm nor deny the Hong Kong mansion deal but said:
"What I know is that the issue was big news in the newspapers two years ago
but I am not aware of the latest developments."

He could not confirm if it was one of the business deals "that went sour"
between the two.

So desperate was Grace to have Hsieh arrested that police in Harare arrested
four drivers sent by him to deliver second-hand trucks to her.

The four - Cassimjee Bilal, 28, Henry Hadebe, 57, Samuel Risimati Baloyi, 40
and Sidney Masilo, 40 - have since disappeared and warrants for their arrest
were issued after they failed to appear in court recently.

Anger at Mujuru death comments

http://www.timeslive.co.za

HARARE CORRESPONDENT | 04 September, 2011 01:55

Zanu-PF is lodging a complaint with the Joint Monitoring and Implementation
Committee over remarks attributed to MDC secretary-general Tendai Biti that
President Robert Mugabe's party had been responsible for the death of
retired army general Solomon Mujuru.

Sources said on Friday that Zanu-PF secretary for administration, Didymus
Mutasa, had instructed the party's liaison officer in Jomic to draft the
letter of complaint. This came after Biti, who doubles up as the Minister of
Finance, told a well attended MDC-T rally in Mutare two weeks ago that
Mujuru had been killed by people in Zanu-PF.

"The letter has been drafted. It is being scrutinised by the office of the
secretary for administration before being officially sent to Jomic's
national director," said a source familiar with the issue.

Mujuru was burnt beyond recognition at his farmhouse in the Beatrice
district, not far from Harare, triggering a deluge of conspiracy theories as
to the cause of the blaze, which one senior military official described at
the time as "mysterious".

Biti told thousands of his party supporters in Mutare that Mujuru's death
had "Zanu-PF's fingerprints" on it.

"Zanu-PF will invest in violence, they will invest in arms. Now they have a
new tactic, of roasting people. That is the Zanu-PF we know. Those are the
Zanu-PF fingerprints. That's the Zanu-PF DNA," Biti was quoted as having
told his boisterous party supporters.

There are several conspiracy theories doing the rounds in Harare, with some
Zanu-PF critics claiming Mujuru had been a victim of the party's covert
succession battle to succeed Mugabe when he finally decided to step down
from the helm of the party.

Mugabe has refused to retire, claiming it would lead to the collapse of the
faction-riddled party.

A weekly newspaper reported that Zanu-PF wanted Jomic to investigate the
"weird" reporting in the private media.

Zanu-PF spokesperson Rugare Gumbo told the Voice of America Studio 7 that
Biti's statements were irresponsible, and urged Zimbabweans to stop
speculating and wait for a police report on Mujuru's death to be issued.

"Does he have proof that Zanu-PF is responsible?" asked Gumbo.

"We understand that this is the tactic of the MDC - to cause mayhem and
conflict."

The Financial Gazette, one of the country's leading financial and political
weekly publications, reported on Thursday that Zanu-PF had written to Jomic
complaining about the kind of journalism practised by some editors and
journalists in the private media.

The party said the media had taken an extreme partisan editorial policy to
side with Prime Minister Morgan Tsvangirai's MDC formation.

"There is now a symbolic relationship between the MDC-T and editors of
private newspapers . These newspapers are churning out vitriol and venom
against Zanu-PF day in and day out, week in and week out.

"Their reports about anything to do with Zanu-PF are deliberately twisted or
falsified and their choice of words and the tone they carry are horrible to
say the least," read part of the letter written to Jomic dated July 18.

The Zanu-PF secretary for administration said words such as "Zanu-PF
militia", "Zanu-PF thugs", "Zanu-PF junta", "bloodthirsty Zanu-PF
supporters", "Zanu-PF torture camps", Zanu-PF youth bases", "rogue generals"
and "looting party" were commonly used in the private media without
substantiation.

Mutasa added: "It is as if the editorial policies of these papers are being
directed from the MDC-T's Harvest House, while editors themselves have
degenerated to become mouthpieces of this party.

"We are convinced that this skewed kind of reporting is a well-calculated
political posture aimed at propping up the MDC-T party while disparaging and
downgrading other political parties inside and outside the Global Political
Agreement."

The complaint from Zanu-PF follows a similar complaint by the MDC-T over
biased reporting and hate speech at the state broadcaster, the Zimbabwe
Broadcasting Corporation (ZBC).

In its letter of complaint, the MDC said it was registering its displeasure
over the generally negative attitude of the ZBC towards Tsvangirai, MDC-T
ministers and senior party officials as they executed their legitimate
business.

The ZBC has reportedly not replied to the MDC-T complaint.

MDC youths attacked

http://dailynews.co.zw

By Own correspondent
Sunday, 04 September 2011 16:22

HARARE - Harare’s high density suburb of Budiriro was on Thursday evening
besieged by suspected Zanu PF youths who went on a rampage attacking
suspected mainstream MDC supporters who were putting up posters advertising
the party’s weekend rally, according to Senator Obert Gutu, the party’s
provincial spokesperson.

The rally is scheduled for Sunday in Highfield.

The Zanu PF youths pulled down posters and attacked the MDC youths leaving
seven of them seriously injured, two of them without their front teeth.

“Two truckloads of Zanu PF youths came around 7:30pm as our youths were
putting up posters to advertise Sunday’s Anniversary rally and
indiscriminately attacked our people without provocation, they were armed
with knobkerries and sticks."

“Budiriro 5 virtually grounded to a halt and the shopping centre was shut
down for a while and some of our youths were badly injured. I can confirm
two of them lost teeth in the fracas,” Gutu said.

Eyewitnesses told the Daily News that the group was led by known Zanu PF
youths Gomwe and Ndaka. They said the two and others who were involved were
part of a group which unleashed violence that rocked Parliament last month
during the Human Rights Bill public hearings.

The witnesses said police watched helplessly as the activists went on the
rampage attacking innocent residents who were going about their business.

Gutu said “The MDC would like to warn these misguided malcontents that we
are not a violent party and would never engage in the business of disrupting
the activities of competing political parties, but however I must hasten to
say our understanding should never be mistaken for cowardice.

“I must also say these people have been linked to most violent clashes in
Harare and other areas they are a rented crowd supported by expired
politicians who have nothing to offer the electorate and we warn them in as
much as we are not threatening to retaliate we will not fold our hands and
be abused by these Zanu PF thugs,” Gutu added.

Police spokesperson Inspector James Sabau said police were investigating the
matter.

Union accuses Zanu-PF of distorting history in schools

http://www.timeslive.co.za/

VLADIMIR MZACA | 04 September, 2011 01:55

School teachers say politicians are abusing the curriculum. The Progressive
Teachers Union of Zimbabwe (PTUZ) said in a press statement this week that
the history curriculum in particular had been militarised.

The union blamed this situation on events over the years that have seen
Zanu-PF lose its grip on politics. As a result, Zanu-PF had resorted to
brainwashing school children and teaching only history that favoured the
party, it said.

"The threat to the political order which emerged at independence in 1980 has
prompted power-holders to officially abuse the history curriculum to peddle
their ideology and brainwash the innocent learners," the union said.

"Teachers too have not been spared and those working in politically volatile
areas have stopped teaching components of the history syllabus deemed to be
politically incorrect for fear of being attacked. Non-professionals or
professionals cum-politicians have now invaded the system to teach what they
call 'national history'."

In April, the Zimbabwe Teachers Association (Zimta) said the political
situation was forcing teachers to desert rural schools that are understaffed
or have unqualified staff.

The teachers appealed to the principals in the Global Political Agreement to
solve the problem of political violence and setting up of militia bases at
schools.

PTUZ said Zanu-PF was moving into primary schools to push its propaganda on
innocent children by offering what it terms "structural lessons".

"According to the 'syllabus' designed by the National Museums and Monuments,
pupils will be exposed to biased content, which is the subject of a fierce
dispute between Zanu-PF and other political formations in the country," the
union said.

PTUZ argued that curriculum developers have substituted topics such as food
studies and health with studies in democracy, nationhood and territorial
integrity as well as sovereignty. These topics were being taught on biased
political ideologies.

The union said its members were at a crossroads, especially history
teachers, who found it hard to teach the subject without being accused of
attacking Zanu-PF. This has forced teachers to avoid teaching true history
for their own safety.

"As a coping strategy, most of us have now resorted to either teaching
one-sided history for our safety or to stop teaching such topics," read the
statement.

PTUZ said the history curriculum had been structured in a "militarised"
manner, which sought to undermine other aspects of human history, such as
economic, technological and social aspects.

"Collectively we must see the militarisation of the national history as an
attack on our children's freedom of conscience and their right to develop
critical minds."

Last month Education Sports and Culture Minister David Coltart said
government was working on an educational policy that would make it a
criminal offence for politicians to interfere in the running of schools .

"We have adopted a policy to ensure that children are not part of political
campaigns in school. The absence of a tougher educational policy has posed
serious effects on school children who are swept into the political agenda.
The policy is a priority to the ministry, we don't want politicians in
schools," he said.

"Schools should not be partisan to politics. School children should learn
about politics in the classroom, its part of history and culture, learn
about the different ideologies but should not be involved in campaigns. This
problem is common in the rural areas, where politicians have created bases
and even threaten teachers," Coltart said.

Willowvale hit by cheap car imports

http://www.newzimbabwe.com/

04/09/2011 00:00:00
    by Lunga Sibanda

PRODUCTION at Willowvale Mazda Motor Industries (WMMI) has slumped to 800
cars a year from a pick of 8,000 in 1997 due to the influx of imported
second hand cars, the company’s managing director Dawson Mareya has said.

The government has since moved to ban the importation of second hand
vehicles older than fives years in a bid to protect the local industry.

Mareya told journalists during a tour of the assembly plant that uptake of
locally assembled cars was low as many people were buying second hand
vehicles which were cheaper.

He said the government should further support local manufacturers by
reinstating the 40 percent import duty which was scrapped in 2009.

“As a country we should not be shy to apply measures that are intended to
save and grow our industry. The primary purpose for imposing duties is to
level the playing field,” said Mareya, noting that if protected, WMMI had
potential to meet local demand.

The WMMI chief said a decline in output at the company had affected a number
of down stream industries such as local spare parts manufactures who have
either suspended operations or cut-back on supplies due to dwindling demand
from assembling plants.

He suggested Zimbabwe should follow the example of South Africa which has a
policy to protect its local industry, in addition to reinstating duty on
vehicle imports.
“We are proposing that government reinstates duty on motor vehicles to
levels prevailing prior to July 2009,” he said.

“We also have to develop a Zimbabwe Motor Industry Development Policy to
provide a roadmap for the resuscitation of this very important sector of the
economy.”

Mareya said operational challenges forced WMMI to cut its workforce from
about 800 in 1997 to 120 employees.
The company had also been forced to close its assembly plant in Mutare.

Alarm bells over huge steel deal

http://www.timeslive.co.za

JAMA MAJOLA | 04 September, 2011 01:54

Barely a month after the signing of a mega $750-million agreement between
Zimbabwe and India's Essar Group investment - one of the biggest in recent
history - controversy has erupted again, with senior government officials
and workers questioning the value and utility of the business deal.

Some in government are asking if Zimbabwe did not mortgage its massive iron
ore resources in the deal.

Indian steel giant Essar bought 54% of the state-owned Zimbabwe Iron & Steel
Company (Ziscosteel). The Zimbabwe government kept 36% while 10% remained
with minority shareholders. The new company will be known as NewZim Steel.
The deal also involves the formation of NewZim Minerals, which will invest
$3.5-billion in mining.

Government and Essar Africa Holdings Limited last month announced the launch
of two entities, NewZim Steel and NewZim Minerals. This closed the
transaction process which started in August last year with a public tender
for a majority stake of the government shareholding in Ziscosteel.

The launch apparently began a new chapter in the economic recovery of
Zimbabwe and the revival of mining towns of Redcliff and Chivhu, which were
becoming ghost towns.

However, documents about Essar seen by the Sunday Times this week show there
are serious questions marks over the deal.

"On the surface, buying a one-million-tonne steel plant in Ziscosteel seems
a small acquisition for a big conglomerate like the Essar Group, but in
reality the company has discovered a gold mine," one of the documents says.
"The real issue is not what government officials say, the issue is that
Essar now has access to iron ore reserves of between 20 and 25 billion tons,
which are enough to last its current steel capacity for a thousand years.
With its steel capacity reaching 14 million tons per annum next year, Essar
needs close to 23 million tons a year. It takes 1.6 tons of iron ore to make
one ton of steel."

Documents say although it appears Zimbabwe will gain a lot in the process,
in the final analysis it is Essar that has far more to gain.

"Government should establish a commission of inquiry into this issue to
assess how and why such a project of strategic national interest could be
sold for peanuts. What exactly transpired in this deal? There is more to it
than meets the eye," says the report.

NewZim Minerals, which will invest $3.5 billion in mining, is 20% owned by
the government and 80% by EAHL. The firm will acquire a 100% stake in Buchwa
Iron Mining Company from Ziscosteel and will be tasked with the exploration
and development of Ziscosteel's mining assets, including the Ripple Creek
Iron Ore Mine in Redcliff, its limestone deposits and the Mwanesi iron ore
deposit.

The priority of the new company will be to ensure sufficient supply of
good-quality iron ore to NewZim Steel and increased volumes required by any
planned capacity expansions. The iron ore at Ripple Creek will be mined to
feed NewZim Steel plant requirements in the short term. The Mwanesi deposit
has been relatively unexplored to date and initial work indicates that it
largely consists of a poorer-grade, jasphalite ore.

EAHL will fund a testing programme for NewZim Minerals to establish the
quantity and quality of the ore, including the latest technologies which can
be used for beneficiation.

Zim finds friend in Beijing

http://dailynews.co.zw/

By Wall Street Journal
Sunday, 04 September 2011 16:20

HARARE - A new school here teaches Mandarin and Confucian philosophy.

A state-backed Chinese firm controls a coveted diamond mine. A new
parliament building, renovated soccer stadium and agricultural school are in
the works, all courtesy of Beijing.

In Zimbabwe, the appeal of the Chinese way — a model that prizes strategic
control of the economy as opposed to the US push for transparent markets and
competition — is clear.

Under President Robert Mugabe, Zimbabwe’s economy contracted by 50 percent
from 2000 to 2008. The longtime strongman turned to China, in part to combat
sanctions from the US and other Western countries targeting his regime.

China’s loans and investments offered a lifeline. During a trip in March,
China Vice Premier Wang Qishan announced a new $687 million loan package.

“With friends like these, who needs a fading giant such as the United
States?” Zimbabwe Information Minister Webster Shamu said after the vice
premier’s visit.

China’s aid has helped fund schools such as the Confucius Institute, housed
on the University of Zimbabwe campus in an area of Harare known as Mt.
Pleasant.

Posters of the Great Wall, the ancient Buddhist Grottoes of Yungang and last
year’s Shanghai World Expo line the halls outside the institute’s
classrooms. Down a leafy road, young Chinese teachers share a cottage, where
between classes they stir-fry noodles in a communal kitchen and surf the
Internet for celebrity gossip back home.

“China needed to have a vehicle to understand the world and have the world
understand China,” says Pedzisai Mashiri, the local director of the
Confucius Institute. “For an economic giant, it’s a way to communicate with
countries beyond what it exports.”

Zimbabwe, meanwhile, has extended remarkable perks to Chinese firms.

A big player here is China’s state-owned Anhui Foreign Economic Construction
Group, or Anjin, which has been mining diamonds in the Marange area of
Zimbabwe. That particular region has been barred from exporting the stones
because of alleged human-rights’ abuses against local miners.

At the end of June, the chair of the Kimberley Process, a global
certification body that aims to keep diamond proceeds from funding war, said
miners could export from Marange despite opposition from member countries
such as the US and Canada. Anjin has not yet been awarded certification to
export diamonds from its mine.

In June, Zimbabwe’s parliament approved a $98 million loan to the Zimbabwe
government from China’s Export-Import Bank to build a defense college,
according to the loan agreement reviewed by The Wall Street Journal.

Anjin workers are also building the college. In an indication of China’s
flexible dealmaking and the close links between the parties, Zimbabwe is
able to pay the loan back with proceeds earned from selling its share of the
diamonds from the Anjin mine in Marange, according to the loan document.

At a conference on corruption earlier this year, Mugabe’s political partner
and chief rival, Prime Minister Morgan Tsvangirai, said “Zimbabweans have
been shocked” with the concessions granted to Anjin and other firms “without
the scrutiny of cabinet committees.”

Mugabe’s spokesman, George Charamba, called Tsvangirai’s remarks politically
motivated. He says Anjin is one of many Chinese firms contributing to
Zimbabwe’s economy.

Anjin executives declined to comment when reached by phone and did not
respond to faxed questions about operations in Zimbabwe. China’s embassy in
Zimbabwe refused interview requests. Zimbabwe army and military spokesmen
did not respond to written questions and repeated telephone calls seeking
comment about Anjin.

In a company statement about the project, posted on the website of
state-backed China Radio International, Anjin extolled its aid and
investments in Zimbabwe. It called the diamond venture with the Zimbabwe
army “a model for Sino-African co-operation.”

Christopher Mutsvangwa, Zimbabwe’s former ambassador to China, says the
Chinese development model may still be evolving but it has already succeeded
in delivering investment to needy economies. Decades ago, he was a rebel who
fired Chinese-made AK-47’s.

Now, he is a businessman who wears pinstripe suits, trying to bring a
China-backed economic zone for Zimbabwe.

“The Chinese,” he says, “have created a new sense of optimism about Africa.”

Biti pushes for reform in ZSE law

http://www.timeslive.co.za

BUSINESS CORRESPONDENT | 04 September, 2011 01:55

Finance Minister Tendai Biti has stoked debate about the role of nominee
companies in Zimbabwe's capital markets after an international organisation
raised a stink about their support for illicit diamond-trading institutions.

Biti is proposing far-reaching reforms to current legislation to enable
further disclosures in the key markets and bust what he termed a "cartel on
the Zimbabwe Stock Exchange".

"Our laws ... such as the ZSE Act and the Securities Act are lagging behind,
and they ought to be amended," the lawyer said, adding that Zimbabwe could
emulate the regulatory frameworks of countries such as Britain.

"If we had it our way (at the ministry), we would have a regulator like the
Financial Services Authority, which handles the entire financial sector."

Several investment managers, including Stanbic Nominees, were last week
rattled when Partnership Africa Canada claimed the investment firms were
abetting illegal economic activities by investing in listed companies that
held cash from the tainted Marange diamond fields.

But the SA-owned group has issued a strong rebuttal on that issue, saying
its ZSE activities were above board.

Then Biti claimed 20 of the "shadowy players" were virtually controlled by
the same individuals, and the country was caught off guard by the
ReNaissance Financial Holdings Limited saga because of insufficient measures
to detect insider dealings. As such, Zimbabwe urgently needed to invest in
such technologies as a central depository, while modernising its operations
as well.

While Biti railed at the tension between William Bonyongwe's Securities
Commission of Zimbabwe and the local bourse, he also said the ZSE must be
demutualised if the country was to avoid de facto control of the institution
by a privileged clique.

He said company laws also required an urgent review to ensure that
"controlling shareholders of certain companies do not railroad and override"
minority investors, let alone executive managers. "We also have a disease of
powerful shareholders who always want things done their way.

"You all know what l'm talking about if you have followed the issues at
Hwange and Rainbow Tourism Group," Biti said in veiled remarks targeted at
UK investor Nicholas van Hoogstraten.

Bonyongwe said corporate Zimbabwe must embrace corporate governance tenets
in its totality to encourage investor confidence and integrity of the
country's capital markets.

According to latest ZSE numbers, the exchange rose by nearly 70% in the past
seven months and gained over $290-million in transactions mainly carried by
foreign investors.

WikiLeaks: ZANU-PF paralysis created conditions for "military opportunism." - Biti

http://www.thezimbabwemail.com

04/09/2011 13:45:00    By

ZANU-PF is a party in disarray, according to Minister of Finance and MDC-T
Secretary General Tendai Biti. As a consequence, Mugabe will find it more
difficult to comply with the Global Political Agreement (GPA) and a window
is opened for the military.

The MDC recognizes the importance of security sector reform but does not yet
have a plan for engaging with the military. GPA negotiations are deadlocked.
The current South African team is a marked improvement on the former Mbeki
team, but is naive and does not clearly understand ZANU-PF. If the MDC
cannot make progress in resolving GPA issues, it will appeal to SADC to
create a framework for elections.

3. (C) The U.S. should adopt a more strategic and flexible policy toward
Zimbabwe. The MDC is making progress and the U.S. should recognize this.
Adjustment of sanctions and indirect budgetary support are suggested
responses.

4. (C) Revenues are up and should cover recurrent expenses. Biti hopes to
avoid using special drawing rights for investment programs, but this would
be made easier by donor commitments to fund infrastructure projects. Reserve
Bank of Zimbabwe Governor Gideon Gono is increasingly unpopular within
ZANU-PF. While his departure may not be imminent, he is more likely to go
than Attorney General Johannes Tomana. END SUMMARY.

5. (SBU) The Ambassador called on Biti on December 16 at the Ministry of
Finance.

"I THINK WE'RE IN TROUBLE"

6. (C) The Ambassador initiated the meeting by asking Biti generally how he
viewed the current situation. Biti responded by first addressing last week's
ZANU-PF Congress, which he described as a "charade of mendacity." The party
was unable to resolve the internal struggle over succession. Referring to
the selection of John Nkomo as a party vice-president, Biti said, "An
86-year-old man swearing in a 75-year-old man is a disaster." Since there
were no proper elections to senior party posts, "Lots of people in the
provinces have huge axes to grind." Emmerson Mnangagwa, who was sidelined by
the Congress, had more support within the party than Joice Mujuru. But
Mujuru had more support than Mnangagwa nationally, and both were
"unelectable" in a national presidential election. Newly elevated Party
Chairman Simon Moyo "couldn't win an election in a bar."

7. (C) Far from celebrating the disarray within Mugabe's party, Biti said,
"I think we're in trouble." While the leadership vacuum persists, it would
be even more difficult for Mugabe to abide by the terms of last year's
Global Political Agreement (GPA). Even worse, the political paralysis within
ZANU-PF created conditions for "military opportunism." Biti said it was no
accident that senior military figures were visible participants in the party
congress.

No Plan for Security Sector Reform QNo Plan for Security Sector
Reform ---------------------------------- HARARE 00000987 002 OF 004

8. (C) Biti acknowledged the importance of security sector reform,
particularly a plan to marginalize the securocrats. It was more important to
deal with them, in his opinion, than with Mugabe. "We are negotiating with
the wrong people," Biti said. Freedom from prosecution and financial
security were essential if the top-level securocrats were to step down. He
said some efforts had been made by MDC-T to speak with them, but he admitted
MDC-T had no strategic plan for engagement. We asked whether, in light of
the fact that MDC-T had no liberation war veterans to serve as interlocutors
with the ZANU-PF generals, the South African negotiators could undertake
this task. Biti demurred. The South Africans did not sufficiently understand
the political-military dynamic in Zimbabwe. MDC-T would have to find a way
of dealing directly with the securocrats.

DEADLOCK IN GPA TALKS

9. (C) Biti (one of the MDC-T negotiators) said negotiations between ZANU-PF
and the MDC factions were deadlocked on key issues. Nearly two weeks after
the December 5 deadline set by leaders of the Southern African Development
Community (SADC), the parties had not found a way forward on Mugabe's
unilateral appointments of the Attorney General and Reserve Bank of Zimbabwe
Governor, Mugabe's refusal to make Roy Bennett a deputy minister, and
appointment of MDC candidates as provincial governors. Each of these issues
had been part of the SADC-brokered settlement that brought the MDC into
Mugabe's government, but "Mugabe doesn't want to implement the agreement,"
Biti said. He added, "We need to bring these negotiations to an end as soon
as possible. I'm tired."

10. (C) If the parties cannot resolve the deadlock through the current SADC
Troika mediation led by South African President Jacob Zuma, Biti said the
next step should be a SADC summit that creates a framework for new
elections. SADC would need to make provisions for security and also
explicitly address the prospect of an election leading to a transfer of
power. With or without SADC, Biti added, the way forward must include "black
and white" deadlines on constitutional reform and preparations for
elections. (NOTE: GPA principals Mugabe, Tsvangirai, and Mutambara are set
to meet on December 21 in Harare to announce progress; Biti thought the only
item resolved by then would be the membership of commissions. END NOTE.)

11. (C) Biti said the team of facilitators Zuma sent to the negotiations was
"a breath of fresh air." The new South African team was a big improvement
over Thabo Mbeki's representatives, whom Biti described as "conniving little
idiots" who were frequently spotted having private discussions with ZANU-PF
officials and MDC-M negotiator Welshman Ncube. The new team was
"forthright," Biti said, but "they still have a lot of naivete, especially
Lindiwe Zulu" (Zuma's international relations advisor), and do not clearly
understand ZANU-PF and how to deal with it.

"WAIT AND SEE" SANCTIONS WON'T WORK"

12. (C) As in previous meetings, Biti said he hoped the USG Q12. (C) As in
previous meetings, Biti said he hoped the USG could adjust elements of its
sanctions regime for Zimbabwe. Restoration of voting rights at the
International Monetary Fund would be a positive step. Biti also argued that
some state-owned enterprises should no longer be listed as specially
designated nationals (SDNs) prohibited from doing business with the U.S.
Biti specifically mentioned ZB Bank and Agribank as clear cases for
de-listing. Other entities worthy of consideration were Zisco, Zimre
Holdings, Scotfin, Industrial Development Corporation, and Intermarket
Holdings. Biti said he would supply us with the rationale for delisting,
looking at the control of these entities, who has beneficial interests, and
their impact on the economy. He would also furnish names of any other
entities he thought HARARE 00000987 003 OF 004 should be delisted.

13. (C) ACTION REQUEST: Post recognizes OFAC has classified information on
the entities listed above which cannot be shared with Biti. Nevertheless, we
would appreciate receiving this information so that we can better understand
the rationale for their listing and we can develop information that would be
useful in deciding whether, at an appropriate time, they should be
considered for delisting. END ACTION REQUEST.

14. (C) Biti said the U.S. should adopt a more strategic and realistic (read
flexible) approach toward Zimbabwe. Views in Washington were driven by
headlines that perpetuated the image of a vile dictatorship. "We are
chipping away at the dictatorship, but that doesn't get headlines." Despite
the deadlock over outstanding GPA issues, Biti continued, there had been
"sufficient" progress with ZANU-PF to warrant a response from the USG. Biti
said the U.S. should use sanctions strategically to recognize the progress
that had been made. Additionally, the U.S. should provide indirect budget
support by looking at areas where assistance could be provided without
directing funds through the government.

REVENUE UP, GONO MIGHT BE OUT

15. (C) Biti said the latest revenue figures showed receipts in October had
reached US$132 million, well above the US$90-million plateau for monthly
revenue in the middle of the year. He thought it was likely that by March
monthly receipts would reach US$150 million. While this level of revenue
would take Biti beyond the annual target in his 2010 budget (Ref A), he had
already given thought to where there would be cuts in the event of a
shortfall: revenue would certainly cover recurrent expenditures, including
wages, but some parts of the investment program might have to be postponed.
Biti said that even though his budget speech identified Zimbabwe's balance
of special drawing rights at the International Monetary Fund as a source of
financing, he still hoped to avoid using it. This would be easier to do, he
added, if donors could make commitments to fund infrastructure projects.

16. (C) Biti sounded pessimistic on prospects for early passage of a central
bank reform law that is now with the Senate. Reserve Bank Governor Gideon
Gono had "bought most of the Senate," so further action on the legislation
might take time. But Biti said Gono was increasingly out of favor with
ZANU-PF. His departure from the bank might not be imminent, but Gono was
more likely to go than Attorney General Johannes Tomana. Biti said he had
been disappointed by the relaxed attitude bankers had taken on Gono's
misappropriation of banks' reserves (Ref B), which he termed "theft"
comparable to a lawyer stealing from a trust fund. Given what Biti
considered egregious conduct, we asked why he had not made more of it. He
replied he had raised it with the principals but had received no response.
He speculated that Tsvangirai might be disinterested because of his
relationship with Gono -- they are both Karanga from the same rural area.

COMMENT

17. (C) As usual, Biti was impressive in his exposition of Q17. (C) As
usual, Biti was impressive in his exposition of current political and
economic dynamics. While Tsvangirai may be the most popular politician in
Zimbabwe and the spiritual head of the MDC-T, Biti is head and shoulders
above anyone else in the party in his analysis and strategic view. But he
has more than a full-time job as Minister of Finance and has insufficient
time to devote to his other job as MDC-T Secretary General.

18. (C) In this regard, it continues to be obvious that the HARARE 00000987
004 OF 004 MDC lacks strategic vision. With "disengagement" from ZANU-PF in
November, MDC-T played its only trump card and it has no Plan B if ZANU-PF
refuses to make concessions on the GPA. Biti suggests a SADC Summit to plan
for elections, but SADC cannot impose elections, and elections will not take
place before 2013 (provided for in the current constitution) unless Mugabe
agrees. END COMMENT. RAY

WikiLeaks: General Mujuru had secret talks with MDC

http://www.thezimbabwemail.com/

04/09/2011 12:27:00    by

Harare,- The late army commander General Solomon Mujuru in 2000 allegedly
sent an emissary to the Movement for Democratic Change (MDC) without
President Robert Mugabe’s knowledge to warn the party about a planned
violent crackdown.

According to United States embassy cables released on Friday by the
whistleblower website Mujuru also asked the MDC to consider giving amnesty
to Zanu-PF leaders who were afraid of change because of their criminal past.

The emissary was identified as Goodson Nguni, a well known Zanu-PF activist
often used by the public media to attack the MDC.

“According to a senior MDC official, the emissary informed the MDC of the
GOZ (government of Zimbabwe) intention to provoke violent confrontations
nationwide as a pretext for cracking down on the opposition party and its
supporters,” reads part of the cable.

To avoid this bloody scenario, Mujuru urged the MDC to agree to a complete
amnesty for current and past GOZ officials and Zanu-PF leaders.

In exchange, the GOZ would discuss forming a coalition government with the
opposition.

The US embassy officials saw Mujuru’s offer as a sign of increasing
desperation among Zanu-PF stalwarts who see their loss of power as
inevitable and wanted to ensure their immunity from prosecution for past
misdeeds.

“On the other hand it could be a trap intended to implicate the MDC in a
plot to overthrow Mugabe and justify intensification of the crackdown of the
MDC,” the cable added.

Mujuru is described in the various cables released on Friday as a reformist
who wanted to see the country returning to normalcy so that business can
thrive.

Nguni is described as a distant relative of a member of Mugabe’s family who
has been a reliable source of information for the MDC on the thinking of
senior government leaders. -Radio VOP

WikiLeaks: "Mugabe should step down" - Kasukuwere

http://www.thezimbabwemail.com

04/09/2011 12:57:00    by

ZIMBABWE – A Zanu-PF Cabinet minister allegedly told US government officials
that he had no confidence in Mugabe whom he said should step down to
facilitate leadership renewal, an explosive secret cable released by
WikiLeaks on Tuesday has shown.

The Minister of Youth Development, Indigenisation and Empowerment, Saviour
Kasukuwere appeared to question the suitability of Mugabe during separate
meetings with senior US government officials.

Kasukuwere allegedly met former United States ambassador to Zimbabwe Mr Tom
McDonald in November 2000 and called for leadership renewal in Zanu-PF.

He said the leadership change was supposed to start with the then
vice-presidents, the late Simon Muzenda and the late Joseph Msika, to pave
way for younger replacements, the cable reads.

“Kasukuwere, a youngish businessman with strong party ties, said that the
land issue had been blown out of proportion and that farmland should not be
taken away from white farmers by force. He also plainly stated that
President Mugabe and his cronies must be phased out of their leadership role
and some in his party had proposed that the two vice-presidents should step
down as a first step.”

In an interview yesterday, Minister Kasukuwere rebutted the WikiLeaks
records, saying he never made such statements.

“That’s utter rubbish,” he said.

Another cable claims that Minister Kasukuwere also told the current US
ambassador to Zimbabwe, Mr Ray, that youths should benefit from America’s
donor funds.

The Americans also make explosive allegations that Reserve Bank Gideon Gono
told US diplomats about President Mugabe’s health in 2008, saying he was
battling cancer which would kill him by 2013. - Zimdaily

Wikileaks:  Botswana sought US help against Zim military attack

http://www.newzimbabwe.com

04/09/2011 00:00:00
    by Staff Reporter

BOTSWANA approached the United States for arms of war and related military
equipment to help prepare for an expected attack by Zimbabwe as tensions
escalated between the two countries over claims President Ian Khama was
harbouring MDC-T militias.

President Khama attracted the wrath of Zanu PF officials after calling for
fresh elections following the disputed and violent 2008 ballot with Justice
Minister Patrick Chinamasa accusing the Botswana leader of “extreme
provocation”.

Zimbabwe officials further accused Botswana of giving military training to
MDC-T militias to help overthrow President Robert Mugabe.

According to leaked secret US embassy communications, Botswana then asked
the United States to supply various military equipment, fearing a military
attack by Zimbabwe.

A Major General Tlhokwane, then the deputy commander of the Botswana Defence
Forces, is said to have approached a defence cooperation official at the US
embassy in Botswana on July 14 and claimed that Zimbabwe had massed military
forces into the border region.

He asked the US to help with global positioning systems, anti-tank missiles,
short range air defence systems, F5 under-wing tank system and helicopter
gunships to help Botswana prepare for the expected attack.

“The requests for anti-tank missiles and a short range air defense system
make sense in the context of the current situation as Zimbabwe has more
numerous and more advanced tanks and aircraft in their inventory than
Botswana,” the US embassy cable reads.

The US however, declined the request with Botswana embassy warning that
provision of the equipment could harm America’s interests in the region and
possibly trigger an arms race.

“This Mission is mindful of how a closer US government and (Botswana)
security relationship, with possible provision of new arms and equipment,
might impact our ongoing diplomacy in Southern Africa and beyond,” the cable
reads.

“We should examine ways to enhance institutional ties and other support for
the government of Botswana and the Botswana Defence Forces where
appropriate, but also in a manner that will not harm overriding U.S.
interests in Africa”

Meanwhile, President Khama had a “harsh exchange” with President Mugabe at a
SADC meeting where he demanded that the Zimbabwean leader provide proof that
Botswana was training MDC-T militias.

A US embassy cable from January 2009 claims Khama confronted Mugabe during a
SADC meeting which discussed formation of Zimbabwe’s coalition government
and told regional leaders that the claims “were just a typical distraction
tactic on (Mugabe’s) part”.

“Khama told the assembled Heads of State that he would step down as
President if Zimbabwe's allegations were found to be true, but asked if
Mugabe would also agree to resign if they turned out to be false.  According
to Khama, Mugabe did not respond,” the cable reads.

Wikileaks: Mugabe obsessed with out-lasting Kaunda

http://www.newzimbabwe.com

04/09/2011 00:00:00
    by Staff Reporter

PRESIDENT Robert Mugabe rejected pleas from close aides and his personal
physician to leave office in 2007 insisting he had to beat former Zambian
President Kenneth Kaunda’s record of 27 years in power.

Mugabe’s apparent obsession with outlasting Kaunda was revealed to US
embassy officials by RBZ governor Gideon Gono during a meeting held on
September 5, 2007, leaked embassy cables have revealed.

In her report following the meeting, Katherine Dhanani, a US foreign Affairs
official then with the Harare embassy, wrote: “Gono told us he had broached
Mugabe's retirement with him by suggesting the country needed his memoirs.
Mugabe responded with a litany of reasons as to why he did not wish to step
down now”.

Mugabe is said to have cited the fact that his deputy, Vice President Joseph
Msika, was unwell along with the “significant infighting within Zanu PF”.

“(Mugabe) agreed with Tony Blair on one thing -- the time to step down was
after leading one's party to victory, thereafter giving it time to
consolidate before the next election,” Dhanani wrote.

“He did not want to have led the party for much of his life and then see it
get defeated after his departure ... There had been questions about his
legitimacy, and he wanted to put those to rest through an election victory
next year.”
In addition, Gono suggested Mugabe nursed a long-standing grudge against
ex-Zambia President Kenneth Kaunda.

“Former Zambian president Kenneth Kaunda had left office after 27 years.
(Mugabe) wanted to exceed this, which meant staying on until next year.
(Note: Gono thought Mugabe felt a personal rivalry with Kaunda since Kaunda
had supported ZAPU)."

The RBZ chief also revealed that Mugabe’s Malaysian personal doctor had
since re-located to Harare as concern increased over the President’s health.

Said Dhanani: “In a hushed voice, Gono then told us Mugabe's personal
physician from Malaysia was now living in Harare, close to Mugabe. He said
he (Gono) alone was part of health discussions with Mugabe and the
physician.

“The physician had urged Mugabe to step down immediately; continuing as
President would be dangerous to his health. Mugabe had resisted and asked
him to keep him going until next year's elections.
“The physician agreed on condition that Mugabe leaves office right after the
election. Mugabe agreed.”

Like Libya, Zimbabwe must move on – Zimbabwe Vigil Diary: 3rd September 2011