Mugabe blasts war veterans

http://www.theindependent.co.zw/

March 8, 2013 in Politics

PRESIDENT Robert Mugabe last week took a swipe at war veterans for
belittling his indigenisation calls by fronting for white business people in
mining and farming activities in the country.

Staff Writer

Addressing thousands of Zanu PF supporters who thronged Chipadze Stadium in
Bindura to celebrate his 89th birthday, Mugabe said he is aware that some
war veterans and senior party officials are active in safeguarding the
interests of white capital.

“The war veterans came in groups and were given permission to mine chrome
and coal but some are now shadows of the white people and they continue to
lie to us that they are on their own,” Mugabe said.

Mugabe’s swipe comes in the wake of complaints in Masvingo that Zanu PF
politburo member Dzikamai Mavhaire is fronting for whites after he allegedly
blocked the indigenisation of Zimbabwe’s sole lithium producer, Bikita
Minerals.

Mavhaire has a 21% stake in Bikita Minerals and he argues that there is no
need for the company to be subjected to government’s controversial
indigenisation regulations because it is indigenised already.

Mavhaire says he embraced indigenisation long before the country had
enforced the law.

Besides his 21% shares in the mine, Bikita Community Trust has 10%, the
Sovereign Trust Fund another 10%, the workers 5% and (ZCC) Bishop Nehemiah
Mutendi has 5%.

Zanu PF has enlisted the service of war veterans to campaign for the party
in crucial forthcoming elections and it is not known what implications
Mugabe’s swipe would have on their resolve to mobilise support for the
polls.

Mugabe gave firebrand war veterans’ leader Jabulani Sibanda the nod to
mobilise support for Zanu PF in the provinces last year.
Sibanda said Mugabe is exposing certain elements who do not belong to his
association.

“War veterans include a lot of people and those that are involved in such
activities are not part of my association,” said Sibanda. “The list of those
in mining activities (which I cannot reveal to you) include high ranking
people who have been in business and have never been part of my
association,” Sibanda said.

Sibanda said those who belong to his association are still waiting for their
mining concessions from the Ministry of Mines.

“The war veterans in my association are standing for what is right and we
are on the ground to make sure there will be victory for President Mugabe
and Zanu PF in the forthcoming elections,” Sibanda said.

Mugabe’s weekend vitriol will open a can of worms as most Zanu PF officials
and chiefs are reportedly being used as fronts by white business people and
ex-farmers whose land was grabbed at the onset of the land reform programme.

Mugabe also recently threatened to take action against chiefs and senior
government officials he accused of leasing their land to former white
farmers while addressing a conference for traditional leaders in Masvingo.

Zanu PF may lose in Mash central: Mafios

http://www.theindependent.co.zw/

March 8, 2013 in Politics

ZANU PF Mashonaland Central chairperson Dickson Mafios said party structures
in the province are in shambles and urgent interventions are needed for it
to avoid an embarrassing defeat in the next elections.

Report by Elias Mambo

Mafios told the Zimbabwe Independent on the sidelines of President Robert
Mugabe’s 89th birthday celebrations at Chipadze Stadium in Bindura on
Saturday that the province faced multiple problems ranging from the
imposition of candidates, selling of farms to undesignated individuals as
well as the push for the reversal of the indigenisation programme by some
party officials.

Mafios said Zanu PF may not win elections in the province if problems
concerning land reforms are not resolved because rampant evictions are
currently taking place.

“Our concern is that there are corrupt leaders who have decided to evict
people with offer letters,” said Mafios. “This has to stop and be resolved
because it will cost the party in the next election. Some senior party
officials come and lie to us saying they have been sent by the president yet
they will be pushing their own agendas,” he said.

Sources say there are three centres of power in the province fighting to
control the selection of candidates to represent the party in the elections.

“Vice-President Joice Mujuru’s camp has a list of its own candidates, while
Defence minister Emmerson Mnangagwa’s group is alleged to have its own
representatives and the third is led by , who is linked to Indigenisation
minister Saviour Kasukuwere, and it seeks to retain its turf in the
province,” said one source.

The sources also said primary elections in the province would be hotly
contested as jostling for seats is intense since rival factions are battling
for control.

In his main address, Mugabe also indicated that party structures in the Zanu
PF stronghold are indeed in shambles and something has to be done.

“We have always been proud of this province because it has been united but
we saw it developing loopholes which allowed the enemy to penetrate. We do
not want to lose seats again,” Mugabe said.

Mashonaland Central governor Martin Dinha refuted allegations of candidate
imposition and corruption in his province.

“The province is united as shown by the successful hosting of the president’s
birthday celebrations,” Dinha said.

“We might have some minor differences but that will not make us lose our
focus on the forthcoming elections.”

Matinenga sticks to his guns

http://www.theindependent.co.zw/

March 8, 2013 in Politics

THE MDC-T is trying to convince Parliamentary and Constitutional Affairs
minister Eric Matinenga to contest the Buhera West parliamentary seat
following the death of the party’s aspiring candidate and University of
Zimbabwe lecturer John Makumbe.

Report by Elias Mambo

Makumbe, who was poised to replace Matinenga as the MDC-T candidate, died in
January of heart failure.

However, Matinenga has insisted that he would not avail himself for
re-election in line with his November 2011 decision to retire from politics
at the end of his tenure.

MDC-T sources told Zimbabwe Independent this week that senior party
officials, including Prime Minister Morgan Tsvangirai, have held meetings
with Matinenga to try and persuade him to reconsider his decision to quit
politics.

“Some senior party officials have been meeting with Matinenga to try and
make him reconsider his decision,” said a top MDC-T source.
MDC-T national organising secretary Nelson Chamisa announced soon after
Makumbe’s death that he had asked Matinenga to reconsider standing again
because he was still very popular in the constituency.

But Matinenga insists nothing will make him change his mind.

“My position has not changed,” said Matinenga this week. “I am not seeking
re-election and I will not get back.”

Matinenga says Zimbabwe has a tradition of leaders who overstay in politics
resulting in them destroying the country.

Chamisa said that five candidates had submitted CVs seeking to contest
primaries in Buhera West.

These are among more than 4000 MDC-T aspiring candidates set to battle it
out in the party’s primaries to be held after the referendum.

About 900 prospective candidates have been disqualified.
“Right now I can inform you that the calibre of applicants is very good. We
have lawyers, business people, engineers, trade unionists and teachers who
are ready to represent the party in the next elections,” he said.

The MDC-T recently came under fire for its controversial candidate selection
criteria widely seen as a move to provide bigwigs a safe passage as they
would not contest in primaries.

The MDC-T constitution stipulates that a sitting MP requires a two-thirds
majority confirmation by party officials in their constituency to avoid
primaries.

MDC-T sources said new members wanted that provision waived to allow for
leadership renewal in the 14-year old party.

The primary elections are likely to create fissures in the party as some
aspiring candidates have already indicated that they would contest as
independent candidates should they get blocked through confirmation of
sitting MPs.

MDC-T spokesperson Douglas Mwonzora said it was unfortunate they had to
disqualify some individuals but they had no choice except to stick to the
set criteria.

“What I must emphasise is that we stick to our resolution that everywhere
where there is a sitting MP, they would have a confirmation exercise first
and if the people confirm their candidacy there won’t be any need to hold
the primaries,” he said.

Multimedia: Christpowers’ death throwback to 2008

Panic over poll funding

http://www.theindependent.co.zw/

March 8, 2013 in News

ALTHOUGH the broke unity government struggled to mobilise funds for the
constitution referendum, mainly by squeezing out money from private
companies, officials are now panicking over raising adequate resources for
the elections expected in July as it remains unclear how much the United
Nations Development Programme (UNDP) would contribute.

Owen Gagare

Finance minister Tendai Biti was yesterday supposed to brief the media on
the referendum, elections and state of the economy, but cancelled the press
conference until Monday. Official sources said while a few private sector
companies had contributed, government was still in a financial fix over
funding of electoral processes.

“Government, which is penniless, is in a financial crisis despite claims by
some it is doing well in its fund-raising initiative,” a senior minister
said. “Although the money for the referendum is now there, the reality is
the UNDP might not provide enough to bridge the gap as it did during the
constitution-making process when, together with the Zimbabwe Institute, it
contributed US$22,1 million out of the US$50,7m used.

Government actually provided more than donors as it chipped in with
US$28,6m.”

Sources said the Zimbabwe Electoral Commission (Zec), which will conduct the
referendum and elections, was yet to get adequate resources. The body is
funded from the Consolidated Revenue Fund.

Other sources of funds include fees and charges for services, proceeds of
any penalties imposed, deposits forfeited by candidates, donations or grants
approved by the Finance minister and returns on investments.

“Just a week before the referendum, Zec is still struggling financially and
logistically,” another official said. “The problem is that it was not given
enough resources and time.” Zec acting chairperson Joyce Kazembe last night
refused to comment.

Zec had initially drawn a budget of US$220m for the referendum and
elections, but the amount was later revised downwards to US$192m after the
scrapping of the delimitation of constituencies. It now says at least US$85m
is needed for the referendum, while elections would require US$107m.

Government is scrounging for US$250m for the referendum and elections.

Information obtained by the Zimbabwe Independent indicates Biti, who is part
of a cabinet committee consisting of Deputy Prime Minister Arthur Mutambara
and Justice minister Patrick Chinamasa tasked with fund-raising for the
referendum and elections, was worried government — which is collecting
US$240m a month on average — was not able to contribute anything meaningful
due to limited revenues.

On February 4, Biti wrote to the UNDP resident representative Alain Noudehou
asking the body to assist the country mobilise US$250m for the
constitutional referendum and elections.

Biti indicated in his letter that although the 2013 budget was ideally
supposed to fund both the referendum and the elections, the two processes
only had a combined budget provision of US$25m.

Noudehou replied Biti on February 11, saying the UN would first send an
electoral assessment mission to Zimbabwe before making a decision on how
much it could release. He informed government the request had been
transmitted to UN focal point on electoral assistance at the UN headquarters
as per the UN guidelines on electoral support.

The assessment team is, however, yet to arrive in the country resulting in
pressure increasing on government to find alternative ways of securing
resources given authorities do not know to what extent the UNDP would be
able to assist.

Worried by the delay, Biti wrote to the inclusive government principals and
party political leaders on February 15, noting the UNDP had agreed in
principle to help out although their process would take a long time because
of bureaucratic procedures which would make it impossible to fund the
referendum.

In his letter to principals, Biti said government was collecting an average
of US$240m, of which about US$200m goes towards the civil service wage bill,
leaving only US$40m for all other government operations.

From that, Biti told President Robert Mugabe, Prime Minister Morgan
Tsvangirai, Mutambara and Industry minister Welshman Ncube it was clear
government was not able to raise funds for the referendum and elections on
its own.

Biti recently wanted the referendum postponed due to financial problems, but
Mugabe refused.

In January, for example, government collected US$239,3m against a target of
US$273,7m resulting in a shortfall of US$29,4m.

Total disbursements during the month amounted to US$231,8m. Of this, total
employment costs were US$194,2m, other recurrent expenditures US$31,2m and
capital expenditures US$8,1m. The total expenditure was US$231,9m, leaving a
balance of about US$7,4m as build-up for February expenditures.

The inadequate revenue inflows, coupled with uncertainty over UNDP funding,
has left government anxious and panicking about how it would fund its key
obligations this year.

Pressure on Kasukuwere to reverse US$1,7bn deals

http://www.theindependent.co.zw/

March 8, 2013 in News

ZIMBABWE’S controversial indigenisation programme, the centre-piece of Zanu
PF’s election campaign, is now hanging in the balance amid indications major
empowerment deals worth US$1,7 billion could soon be revisited or reversed.

Report by Faith Zaba

Official sources said yesterday pressure was mounting on Indigenisation
minister Saviour Kasukuwere to agree to revisit the deals, which have caused
a storm in the corridors of power.

“There is growing pressure for the indigenisation transactions, which are at
the centre of the current row, to be revisited or reversed,” a government
official said yesterday. “This has left the indigenisation programme hanging
in the balance.”

Senior government and Zanu PF officials have of late been clashing over the
indigenisation programme, with one group led by Kasukuwere and the other by
Reserve Bank governor Gideon Gono battling over the process.

The fight is mainly centred on the ideological thrust of the policy, its
conceptual basis, framework, implementation mechanisms, liaisons, valuation
of companies, legislative issues, exchange rate approvals, consultation fees
as well as terms and conditions of agreements.

Kasukuwere has mainly been supported by Zanu politburo member and former
Information minister Jonathan Moyo and the party’s youths, while Gono is
backed by Vice-President Joice Mujuru and Deputy Prime Minister Arthur
Mutambara.

President Robert Mugabe last week said Kasukuwere has made some mistakes.

Prime Minister Morgan Tsvangirai recently urged parliament to investigate
indigenisation deals. Finance minister Tendai Biti has warned some aspects
of indigenisation are “illegal”.

Official sources said this week the indigenisation issue was raised during
Mugabe’s Monday morning briefings amid indications of a widening fallout
over it.

There were attempts last week by Anti-Corruption Commission and Zimra to
scrutinise and investigate empowerment transactions.

In an interview with the Zimbabwe Independent this week, Gono indicated,
following Mugabe’s remarks on Kasukuwere’s blunders, there was a need to
revisit the major indigenisation deals.

“We also need to pay attention to the conditions attached to some of these
transactions and violations of standing exchange control laws, rules and
regulations, all of which could have been avoided had necessary
consultations been done,” he said. “These problems technically render some
of these transactions null and void if fundamental amendments required are
not done.”

Gono said he had held meetings with Mugabe and Mujuru to discuss the issue.
Major deals done so far include Zimplats (US$971 million), Mimosa (US$550m),
Anglo-American (US$142m), Pretoria Portland Cement (US$27,8m) and Caledonia
(US$30m), all worth US$1,7bn.

Polls: Fierce clashes rock inclusive govt

http://www.theindependent.co.zw/

March 8, 2013 in News

DIVISIONS have rocked the inclusive government over the lobby by MDC-T for
an extraordinary Sadc summit on Zimbabwe ahead of watershed elections
expected mid this year as tensions rise in the aftermath of a suspected
arson attack which led to the death of a 12-year old boy, Christpowers
Maisiri of Headlands in Manicaland.

Report by Owen Gagare

Following the boy’s death, cabinet ministers from the two MDC formations
clashed in two consecutive sessions with their Zanu PF counterparts whom
they accused of orchestrating political violence.

President Robert Mugabe’s spokesman George Charamba yesterday confirmed the
Christpowers issue was again discussed in cabinet this week.

“It was talked about in two cabinet sittings in a row, so there was no need
for principals to discuss it further because they are also part of cabinet,”
he said asked if principals had also tackled it.

Sources said Vice-President Joice Mujuru was particularly scathing in her
attacks on MDC-T ministers, claiming they behaved as if they were the only
ones who had ever lost loved one in such tragic circumstances.

They say Mujuru told cabinet she had lost her husband, former army commander
General Solomon Mujuru, under similarly tragic circumstances two years ago
but did not use the incident to gain political mileage.

Ministers clashed in cabinet last week on Tuesday over the same issue. A day
after that, Prime Minister Morgan Tsvangirai dispatched his party’s
secretary for international relations Jameson Timba to brief Sadc leaders
and diplomats on the deteriorating security situation in the country.

Timba showed them pictures of the boy’s burnt remains and a dossier
containing 120 incidents of violence against MDC-T officials and supporters
this year while lobbying regional leaders for an extraordinary regional
summit focusing on Zimbabwe ahead of elections.

Zanu PF, which has denied responsibility over Christpowers’ death, has
however been angered by the diplomatic offensive which views it as an
attempt by the MDC-T to internationalise domestic issues.

A seething Mugabe told his supporters during his 89th birthday party in
Bindura on Saturday that if MDC-T had issues, it should have engaged its
coalition government partners instead of rushing to “report to Britain and
America”.

He also accused the MDC-T of politicising deaths by blaming Zanu PF even
when the causes were natural.

Charamba said MDC-T was desperately using Christpowers’ death to play
politics but warned their Sadc bid was doomed to fail.

“They are clutching at straws because they have nothing to offer,” said
Charamba. “The MDC wants to naturalise the involvement of foreigners in the
internal affairs of the country, even by calling for international
investigators.” he said.

Charamba said although Christpowers’ death was discussed in cabinet this
week government principals did not tackle the matter in their meetings.

The MDC formation led by Welshman Ncube has been on the same side with MDC-T
in cabinet and also compiled a dossier on violence targeted at its officials
and supporters.

MDC spokesperson Nhlanhla Dube, however, said his party was not so fixated
with the extraordinary summit but wanted Sadc resolutions, agreed issues in
the Global Political Agreement and the election roadmap implemented before
polls.

The divisions and tensions in the inclusive government are also being
fuelled by statements uttered by government officials in public.
MDC-T secretary-general Tendai Biti told mourners during Christpowers’
burial last week that Zanu PF secretary for administration Didymus Mutasa
was responsible for the boy’s death.

Christpowers’ father Shepherd Maisiri is the MDC-T deputy organising
secretary for Headlands and aspiring legislator for Makoni North, a seat
currently held by Mutasa.

Mutasa and Zanu PF have, however, pleaded their innocence and accused the
MDC-T of politicising the tragic incident –– an argument supported by the
police, who have ruled out foul play saying their investigations had
revealed the fire that gutted the house Christpowers was sleeping in was
likely to have been caused by a paraffin lamp.

MDC-T has rejected the police findings and called for international
investigators to be called in to ascertain the cause of the fire.
When the matter came up for discussion in cabinet again this week Zanu PF
stuck to its guns, accusing the MDC-T formation of seeking to gain political
mileage both within and outside the country by capitalising on the boy’s
death.

However, the MDC formations are adamant that Christpowers’ death should be
viewed as a warning that Zimbabwe may plunge into the same levels of
violence seen during the 2008 presidential election run-off which resulted
in scores of people being killed.

Tsvangirai envoy briefs Sadc leaders

http://www.theindependent.co.zw/

March 8, 2013 in News

MINISTER of State in Prime Minister Morgan Tsvangirai’s office Jameson Timba
says MDC-T wants Sadc to set special conditions for Zimbabwe’s next polls in
addition to the regional bloc’s principles and guidelines governing
democratic elections.

Report by Owen Gagare

Timba, who is also the party’s secretary for international relations, last
week made whirlwind trips to Malawi, Tanzania and Botswana before visiting
Mozambique on Wednesday and Angola yesterday to lobby regional leaders for
an extraordinary summit on Zimbabwe before the next polls.

The MDC-T believes the recent crackdown on civil society and the death of
12-year old Headlands boy Christpowers Maisiri, which the party blames on a
Zanu PF arson attack, is an indication of how the country is likely to
plunge into violence if special emphasis is not placed on Zimbabwe by Sadc.

“There are already tell-tell signs that we are heading for an electoral
environment which is intolerable; an electoral environment which does not
augur well for peaceful elections and we have several examples – the killing
of Christpowers, the banning of radios and a crackdown on civil society
organisations,” said Timba.

While we appreciate that Sadc has come up with principles and guidelines for
the conduct of elections in the region, in Zimbabwe these are not enough.
There is need for these guidelines to be adjusted to suit the special
circumstances prevailing in Zimbabwe.

“We will need-term observation for elections. The guidelines state that
observers must come two weeks before elections but in our case we will
require a longer term.We also need them to stay longer after the elections
and we believe five to six weeks will be ideal.”

The Sadc observer team is expected to arrive in the country tomorrow for
next Saturday’s referendum, and indications are that some members of the
team may remain in Zimbabwe until general elections are held.
Timba said the MDC-T is pushing for a code of conduct to govern how
political parties behave during the election period, and it also wants key
institutions, “particularly the security sector”, to stop political
interference.

He said his party believes Zimbabwe’s security forces remain partisan.

Gono lashes out at critics

http://www.theindependent.co.zw/

March 8, 2013 in News

ZIMBABWE’S contentious indigenisation programme has of late been under
scrutiny after debate erupted on over a whole range of issues, including the
ideological foundations of the policy, its conceptual basis, frameworks,
implementation, consultations, valuation of companies, legislative issues,
exchange rate approvals, consultation fees, and terms and conditions of
agreements.

The debate comes at a time when resource nationalism, varied widely in terms
of definition from tax hikes, demand for greater state equity and indigenous
participation to renegotiation of stability clauses in mining contracts and
beneficiation strategies, is all the rage.

In Zimbabwe, the issue has sucked in people from all spheres of life —
ordinary citizens, analysts, company executives and government officials —
all the way to President Robert Mugabe.

Zimbabwe Independent News Editor Faith Zaba (FZ) this week interviewed
Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono (GG), one of the
protagonists in the unfolding indigenisation drama, as part of a series of
interviews the newspaper will conduct over the issue starting this week.

Find below the excerpts:

FZ: Governor Gono there has been a heated debate of late on indigenisation
and it has been suggested you are opposed to the current policy because of
your actions and remarks on the issue. Do you support indigenisation or not?

GG: Well, I have heard those false claims, including attendant labels
bordering on character assassination and insults, but evidence exist to the
contrary and my track record of practically embracing and supporting the
ideals and values of indigenisation speaks for itself.

Throughout the 36 years of my working life I have always strived to
emancipate indigenous people of this country from the bondage of historical
economic disadvantage.

Indigenisation of our economy and broad empowerment of masses was at the
core of the liberation struggle and for that reason I have always supported
the concept and the vision informing it.

FZ: So in brief, are you saying you support indigenisation, is that correct?

GG: It’s common cause, I unequivocally support, not just the indigenisation
policy itself, but also its ideological foundations, vision and objectives.
I have said already my record of walking the talk speaks for itself and is
there for all to see.

The record will also show my first high-profile and public endorsement of
President Mugabe’s position on empowerment and associated national
aspirations was in October 1996 when I had the privilege to address the
Afro-American Conference on investment in Harare attended by African heads
of state and business executives.

Some of those accusing me of undermining indigenisation now were either
still youngsters then or anti-Zanu PF donor-funded expatriates.

In supporting the President’s vision then, I argued clearly and eloquently
that the future stability of our country depended on the urgent extension of
economic opportunities to indigenous people and broadening the ownership of
the means of production to include the majority of hitherto disadvantaged
Zimbabweans.

Furthermore, some of those who have chosen to be my loudest critics today
know my record very well. By his own admission, Honourable Minister of Youth
Development, Indigenisation and Empowerment (Saviour Kasukuwere) himself is
on record admitting that “had it not been for Governor Gono who saw the need
to support and empower some of us as far back as 1994, I would not be where
I am today”.

FZ: But are you not trying to blackmail Kasukuwere through such a reminder
or remarks?

GG: I have no reason to blackmail him at all, I’m just telling the truth.
FZ: Your critics say your supply-side model is a fundamental negation of
equity-based indigenisation and reflects your “house nigger” mentality. What’s
your comment?

GG: I don’t want to sink to the pits of name-calling and insults like my
critics who are dripping with venom and malice. Anyone who has carefully
listened or read what I have been saying would know that I suggested the
supply-side model to complement the equity model in line with my rationale
that a “one-size-fits-all” policy approach is unworkable in this situation.
I’m glad the President supports our position and this should be the way
forward.

FZ: If you support indigenisation as you say, why is it that you have of
late been publicly clashing with Kasukuwere on this issue?

GG: It is a toxic misrepresentation of the truth to suggest that I have
spent the last few weeks arguing with anybody about indigenisation and
empowerment. What you are probably referring to are brickbats that have been
publicly thrown at me by some individuals who cannot accept advice from
anyone other than themselves, but I’m not going respond to those attacks,
except maintaining my position on this issue.

As one of my critics revealed in his venomous outbursts, I have engaged some
colleagues privately in an attempt to exchange notes and see how some
grievous mistakes made so far can be rectified, but we differed in approach
over these matters, hence some of us are being unfairly targeted.

FZ: So who have you met in a bid to deal with these issues privately and
what was the outcome of those meetings?

GG: I have met so many officials, and I can also hint, although this was not
supposed to be public, that I had meetings with His Excellency (Mugabe),
Vice-President (Joice Mujuru) and technocrats to seek their views and
guidance on matters to do with indigenisation, including on deals such as
Zimplats, Unki, Mimosa, (Pretoria Portland Cement) PPC, the banking sector
and other transactions being negotiated or signed left, right and centre
without input from others.

Honourable Minister Kasukuwere and myself also met after those consultations
with a view to regularising some transactions behind closed doors, but
officials at the central bank faced attitudinal impediments from some
colleagues who refused to co-operate and provide paperwork.

It now transpires that we could not get those official documents to fix
certain irregularities because unilateral decisions had been taken by some
people and their advisors in and outside government that we “forfeited” our
right to be consulted or to do our jobs by making our positions known or
because we are “house niggers”.

FZ: Is there anything wrong with the frameworks and implementation
mechanisms being used in deals like that of Zimplats and others?
GG: There is a lot of issues which need to be looked into, including
corporate governance, legal issues, perceived lack of transparency in the
appointment of advisors to the National Indigenisation and Economic
Empowerment Board and government, inappropriate valuation methods and
potentially excessive financial burdens imposed on taxpayers and indigenous
beneficiaries of empowerment deals.

We also need to pay attention to the conditions attached to some of these
transactions and violations of standing exchange control laws, rules and
regulations all of which could have been avoided had necessary consultations
been done.

These problems technically render some of these transactions null and void
if fundamental amendments required are not made. We also found unacceptable
conflicts of interest and unfair awarding of all indigenisation consultancy
assignments to one company established only a few years ago, while charging
what we believe are exorbitant fees which eventually could be paid by
taxpayers.

FZ: Given what you are saying, is it a wrong conclusion to say you are
opposed to the current indigenisation thrust?

GG: It has to be appreciated that constructive criticism of a flawed process
is not the same as opposing its framework and objectives. We are very clear
about that. We are also clear about the fact that inclusivity, transparency,
accountability and corporate governance as well as the quality of advisory
inputs to a process guarantees its integrity and credibility of the
outcomes, including its ability to withstand scrutiny and the test of time.
Dodgy arrangements may undermine an otherwise noble idea and programme.

FZ: What exactly is your problem with the indigenisation programme as it
stands now?

GG: Where the RBZ has differed is with the current “one-size-fits-all”
approach in which the law is used to treat all sectors of the economy as if
they are the same when we know they are not.

In that connection, we were deeply heartened to note that this same view was
echoed by His Excellency (Mugabe) in his birthday interview aired last
Friday. We stand by our well-considered view that the banking sector is
different, has its own structural peculiarities and sensitivities which
require a different mutually-agreed model.

FZ: Besides that, what else has been your gripe with this indigenisation
approach?

GG: Apart from pointing out that a “one-size-fits-all” model is
inappropriate for the banking sector, we have also been at pains to bring to
the attention of relevant authorities contradictions in the indigenisation
law and other pieces of legislation.

Also at stake is fact that the Indigenisation and Empowerment Act requires
that shares acquired by local investors must be paid for.

How? It is not clear, but the law says the acquired equity must be paid for,
not nationalised? We agree with the President that we should have found a
formula in which our resources are used as equity, but as things stand, the
constitution and relevant laws require payment of fair value in
indigenisation transactions.
FZ: Let’s take the Zimplats deal, what is wrong with it? So what will happen
to the Zimplats, Mimosa and Unki transactions, just to mention but a few?

GG: On the Zimplats, Unki, Mimosa transactions, the jury is still out.
According to the law, we must pay fair value for what we acquire. But our
ideological position as expressed by the President is, especially on mining
companies, our resources must have been used pay for the shareholding, but
that was not done. This is where we must secure the best brains available
internally and externally to advise on these issues.

We need experts on corporate finance, accounting, taxation, law, geology,
banking and other relevant disciplines to put their heads together to
negotiate the best deals for our indigenous investors and communities.

The problem with some colleagues, for instance those who studied political
science, is that they want to be economists, financial experts, actuaries,
brokers and lawyers all at the same time because they think they know
everything yet the truth is no one knows it all — nobody is omniscient.

The Zimplats deal, its valuations and term sheet left a lot to be desired
and, as a result, there is a perception that the resource was undervalued,
while the company itself was overvalued. The proposed financing model, loan
and terms and conditions of the agreement being negotiated are skewed
against locals in favour of existing shareholders, making it difficult for
some of us to support such things.

FZ: Some people say the Zimplats deal and other indigenisation transactions
are riddled with corruption in its various manifestations, including
extortion, bribery, cronyism and patronage. What is your comment?

GG: Whether or not there is corruption in the Zimplats or other deals, it’s
too early for anyone to reach that conclusion. We can’t say that without
first closely examining necessary documents, resolutions and minutes on the
transaction to establish if due process was followed or detect corruption,
if any. Only time will tell.

Hunger stalks rural communities

http://www.theindependent.co.zw/

March 8, 2013 in News

WHILE cabinet ministers demand upmarket residential stands, top-of-the-range
vehicles and hefty financial exit packages towards the end of the inclusive
government, villagers still continue struggling as nothing much has changed
for them since the advent of the coalition arrangement in 2009.

Report by Faith Zaba

As the country drifts towards the constitutional referendum next week on
March 16 and crucial general elections likely in July, the Zimbabwe
Independent visited rural areas to see and hear what people are saying about
the social conditions under the coalition government.

Although general conditions changed after the adoption of the multi-currency
system following the devastating hyperinflation period, for Clever
Munengani, a Murehwa villager, and his five siblings and six orphaned nieces
and nephews nothing much has changed — they live on only less than US$3 a
day.

Over and above that, the Munengani family is among the Uzumba and Murewa
villagers in Mashonaland East facing severe food shortages after recent
incessant rains destroyed their crops.

Driving along the Murewa-Mutawatawa road, a sorry sight unfolds as crops on
most communal farms are a virtual write-off after torrential downpours from
December 2012 to February which flooded villages, including homes and
fields.

The 22-year old Munengani, who was orphaned several years ago, said the
family was likely to harvest one tonne of maize that should last them at
least six months. After that, he said they would be forced to sell one beast
for about US$600 which they would use to buy food and pay school fees for 10
schoolgoing members of the family.

Munengani and his 26-year-old brother dropped out of school when their
parents died several years ago. Clever was only in Form 1 then.
Every year, the Munengani family sells two cows to feed itself, but this
year, the situation is dire because of poor crop yields.

“There was too much rain this year. A lot of people planted their crops late
and they have been destroyed. It is going to be a year of hunger,” he said.

“We have six cows left now and each year we sell two cows to raise money for
food and school fees. This year is going to be even more difficult for us
without enough grain to last us the year. We live on sadza, pumpkin leaves
and other green leafy vegetables. We eat meat once in a while when we have a
little bit of extra cash.”

Communal farmers in Uzumba have not been spared either.

Emily Murehwa of Uzumba was distraught as she stared at her rain-destroyed
crop, failing to imagine how she was going to feed her six children this
year. She is a widow whose husband died in 2004.
She normally sells her maize surplus to the Grain Marketing Board (GMB) and
uses the proceeds to pay school fees and buy food for her family, but there
is none of that this year.

“I didn’t know that maize can rot in the field because of too much rain.
Just look at my maize; I just don’t know what I am going to do,” she said as
tears trickled down her cheeks.

“How am I going to feed my children? I don’t have any other source of
income. I can’t even rely on government hand-outs because the distribution
is sporadic and only very few people get the hand-outs.”

Her only alternative would now be to engage in the food-for-work programme
being offered by some non-governmental organisations.

Under the food-for-work progamme, each participant receives a 10kg bag of
maize-meal, cooking oil, kapenta fish, soya portions, beans and bulgar
wheat, but this varies depending on how large the family is.

The heavy rains in Murehwa, Uzumba, Maramba, Pfungwe, Buhera and other parts
of the country, coupled with dry spells in some areas like Masvingo and the
Matabeleland provinces, have led to a poor harvest in Zimbabwe, and aid
agencies expect the number of people facing starvation to rise to more than
1,7 million by end of this month.

Grain milling companies say their current stocks will not last until the new
harvest season in May-June. The Agricultural Marketing Association has
warned government of the looming crisis.

The grain milling industry has also indicated it requires about 150 000
metric tonnes of maize between now and the new harvest to meet consumers’
needs. Sources at the GMBZBCsaid it only has 92 000 metric tonnes of maize
in its reserves and has stopped maize sales to save for the grain loan
scheme.

The GMB, however, claims it has enough grain to feed the nation for the next
six weeks. GMB general manager Albert Mandizha said: “We have six weeks
cover of grain and plans to import will be out in two weeks’ time.”

Zimbabwe needs an estimated 2,2 million tonnes of maize each year and the
United Nations has appealed for more than US$131,4 million in assistance for
Zimbabwe. More than 80% of this appeal would be for food assistance.

The rains, which hit places like Murehwa and Uzumba, left some of the fields
with deep gullies and washed away top dressing fertiliser. In most fields,
the maize crop was less than a metre high and most communal farmers were not
able to weed their crops due to flooding.
Faith Zanga — a mother of two from Mudzambasekwe village in Uzumba — said
she lost her maize crop and groundnuts due to the heavy rains which flooded
her fields.

“My maize crop is about 50 centimetres high and it has not tasselled. I don’t
think I will get even a 50kg bag,” she said.

Asked how she is going to survive until the next planting season, she said:
“I will barter trade clothing for maize.”

Zanga has a vegetable stall and earns a profit of US$10 a week during
month-ends and US$5 mid-month.

“It is going to be a very tough year. I am already struggling to feed my
children — one in Form 3 and another in Grade 3. For breakfast, we normally
have tea and rice. On rare occasions, we have home-made bread and tea,” she
said.

“I can’t remember when I last had lunch. For dinner, we normally have sadza
with pumpkin leaves or dried green vegetables. During this period of the
year, we also pick mushrooms, which are our delicacy.”

Asked how often her family eats meat, she chuckled and said: “Meat; that is
a luxury. It’s been months since I last bought meat. I just can’t afford it.
The sad part about this food crisis is that even widows like us don’t get
anything from the government hand-outs. As far as they are concerned, I own
a business and they say I am OK.”
Seventy-eight-year old James Nyakabau has also been waiting for a response
from the department of social welfare.

“There is hunger everywhere. We are not harvesting anything this year. We
had too much rain and our soils are sandy. I will be lucky to get 100kg of
maize,” he said.

“Last year I applied for assistance from social welfare and I am still
waiting for them to deposit money into my POSB account. I benefitted once
from the food hand-outs, but the problem is the distribution is erratic and
the selective.

“To make matters worse, I have lost my two children and grandchildren are
still in school. I have no one to turn to. I am worried we will starve this
year.”

Local companies under threat from foreigners

http://www.theindependent.co.zw/

March 8, 2013 in Business

Companies in Zimbabwe need protection from foreign ones who are finding
their way into and strengthening their positions in the local market, a
Competition and Tariff Commission (CTC) official said.

Report Fidelity Mhlanga

CTC Assistant director Benjamin Chinhengo said most local industries were in
their infancy due to the hyperinflation that crippled Zimbabwe since year
2000, and industry was in dire need of protection from foreign competition
until such a time as they can stave off competition.

He said most local companies were importing both raw materials and finished
goods.

However, the locals faced unfair competition from the foreigners, from whom
they imported who eventually stole their market
“The issue is that there is great demand which is not being met by local
producers. The coming in of the multinational would be most welcome by
consumers for a wider choice reasons but it would be harmful to local
industry,” Chinhengo said.

“It is unfortunate that Zimbabwe is coming from a hyperinflation era,
otherwise it would make economic sense to strengthen local industry and then
have foreign players penetrate other markets, be they regional or
international.”

At the peak of hyperinflation and at the introduction of the multi-currency
regime in 2009, locally produced goods were scarce as the local industry had
almost stopped production, resorting to imports for resale.

Imported goods are generally much cheaper than locally-produced products
because the majority of local companies are operating obsolete equipment and
machinery.

High production costs are attributable to the dilapidated machinery being
used by most local companies and high input costs.

The commission said it has handled 500 competition cases since inception in
2001, with big cases involving the Delta/Schweppes merger, Rothmans of
Palmall, Coca Cola,Cadbury and Schweppes, Total/Mobil merger as well as
Kingdom Bank/Meikles merger.

Chinhengo said the issue of mergers and acquisitions was not a threat in
Zimbabwe as the reasons for merging were varied, from consolidating the
company position, strengthening the balance sheet, generating foreign
currency and rescuing failing firms.

NEC suspended until after elections

http://www.theindependent.co.zw/

March 8, 2013 in Business

GOVERNMENT has temporarily shelved establishing the National Economic
Council (NEC) until elections are held, a government official said.

Report by Gamma Mudarikiri

Ministry of Economic Planning and Investment Promotion permanent secretary
Desire Sibanda told businessdigest this week that government was currently
busy with election preparations.

Sibanda said the constitution to guide the operations of the economic
council had been finalised, adding the completion of the whole process was
expected after elections.

“The constitution for NEC has been finalised but the process to establish
the council will be completed after elections,” Sibanda said.

“Government at the moment is busy with preparations for the elections.”

NEC was supposed to have been established in 2009 as part of the key
agreements among the principals to the Global Political Agreement (GPA).

The process of establishing the board, however, continues to drag and is
taking longer than expected to be finalised.
The establishment of the council is according to Article 3C of the GPA where
parties agreed to establish the council composed of parties in the
manufacturing, agriculture, mining, tourism, commerce, finance, labour,
academia and other relevant sectors.
The council would comprise 20 representatives from civil society,
government, industry and commerce, with a mandate to conduct policy research
and advise government on policy formulation and implementation.
Government policies, programmes, budgets and the Medium-Term Plan (MTP)
would be executed through advisory services provided by the think tank.
Zimbabwe’s economy continues to decline because of inconsistences in policy
formulation and implementation.
The economy this year is projected to grow by 5%, far below the MTP target
of 7,1% growth per annum.

Should the RBZ be independent?

http://www.theindependent.co.zw/

March 8, 2013 in Business

DESPITE much having been written and said about the new draft constitution
which goes to a referendum next Saturday, little has been written or debated
around the key issues of central bank independence, which many economists
have in the past highlighted as a weakness of the current set-up.

Clive Mphambela

Whilst the draft has been hailed in some quarters as being highly
progressive in certain aspects relating to the Bill of Rights, citizenship
and other political issues, some economists said the draft constitution was
devoid of detail when it came to economic issues.

In a survey of economists’ views carried out by businessdigest this week,
various schools of thought emerged, but there was general convergence on the
notion that a key success factor in management of the country’s monetary
affairs rests with an adequate level of independence of action of the
central bank.

Tony Hawkins, economics professor at the University of Zimbabwe, who
however, could not give a detailed comment on the subject as he also sits on
the RBZ board, said the draft document was bereft of economic issues.

“I think the draft falls woefully short of economic issues such as central
bank independence,” he said.

Another economic analyst who declined to be named said the draft seemed to
scratch the surface when it came to economic issues, with relatively more
space devoted to other matters.

“I have read the draft and noticed that the document does not deal in
sufficient depth with the issues surrounding the operations of a central
bank in Zimbabwe. Neither does the new proposed constitution make any
serious attempt to fully and clearly define the roles of the central bank.
More importantly, it does not provide for the clear independence of the
central bank,” the analyst said.

However, another University of Zimbabwe economics academic, professor Ashok
Chakravarti said a constitution could only enunciate the general principles
that a society agrees to rule itself by, without the need to provide
specific operational guidance on the functioning of any single institution
within the three arms of government or agencies of the state.

He said in his view, the draft Constitution of Zimbabwe outlined the general
principles of financial management, which includes the functioning of the
Reserve Bank, in Part 6 of Chapter 17, which deals with the Reserve Bank.

“This section indicates that the main objectives of the Reserve Bank are to
regulate the monetary system, protect the stability of the currency, and to
formulate and implement monetary policy. In terms of general principles, I
consider this to be an adequate statement of objectives, because the real
powers and behaviour of the Reserve Bank will be actually determined by the
Acts of Parliament which will cover its establishment and functioning,”
Chakravarti said.

There is a general consensus amongst economists that the mandate of any
central bank is to balance the twin but often conflicting objectives of
maintaining monetary stability through primarily constraining inflation at
low levels, whilst promoting economic growth. These objectives often
conflict because promoting growth may require an expansionary monetary
policy, which may be at variance with maintaining monetary stability.

“Therefore, in a developing country, a central bank cannot be allowed to
decide upon its own objectives independent of national development policy.
There cannot be a completely independent central bank which does not conform
to the needs of the national economic strategies of the government.

“For the above reasons, a central bank in a developing country cannot be
completely independent in its economic decision making. Even in a developed
market economy, a central bank cannot be immune to the growth needs of an
economy.

See how the Federal Reserve of the US, under direction from the US
government, has been following an aggressively expansionary monetary policy
to get economic growth and employment creation going in that country,”
Chakravarti argued.

Charkravarti warned that excessive central bank independence could have an
undesirable effect. He said whilst the RBZ Act Chapter 22:15 gives very wide
powers to the RBZ and the governor to perform a wide range of activities,
the powers were so wide that they effectively allowed the RBZ to become the
Ministry of Finance of the country during 2000-2008.

NRZ operating below capacity

http://www.theindependent.co.zw/

March 8, 2013 in Business

National Railways of Zimbabwe (NRZ) last year moved only 3,7 million tonnes
of cargo against a target of 6 million tonnes, owing to low business in
the period as industry continues to underperform.

Report by Gamma Mudarikiri

NRZ public relations manager Fanuel Masikati told businessdigest this week
that because business was operating below capacity, this had resulted in the
parastatal moving 2,3 million tonnes less
than that required for it to break even.

Masikati said despite business being low at the beginning of this year, NRZ
was still targeting to move six million tonnes of cargo this year.

This was however dependent on the recovery of industry.

The cash-strapped NRZ is battling with viability challenges and requires
at least US$400 million in the short-term to improve operations and replace
its archaic infrastructure, including railway tracks, telecommunication
signals and wagons which have outlived their lifespan.

In the long term, NRZ needs US$2 billion to fully recover.

As part of efforts to recapitalise, NRZ in 2009 ordered 16 locomotives
worth US$30 million from a Chinese company but four years down the line,
it is yet to take delivery of the equipment due to failure by government
to pay a balance of US$27 million.

NRZ had paid an initial US$3 million upon placement of the order.
The company is also battling to pay its employees’ salaries, with arrears
backdating to last year.

To prevent financial distress from worsening, NRZ was not replacing workers
who die, retire or resign.

Its workforce has declined from 9 000 when the economy dollarised in 2009,
to the current headcount of just above 7 000.

RioZim saga takes new twist

http://www.theindependent.co.zw/

March 8, 2013 in Business

THE ONGOING dispute between Tourism minister Walter Mzembi and RioZim’s
Renco Mine has taken a new twist amid indications the matter is more than
just a case of alleged unlawful entry and occupation of the mine’s premises
by the government official and his associates.

Report by Taurai Mangudhla

A High Court ruling, which Mzembi is appealing against in the Supreme Court,
ordered him and his colleagues Chivi South MP Irvine Dzingirai and special
assistant Obediah Mazombwe off Renco Mine premises.

Information gathered by businessdigest indicates top Zanu PF officials have
written to Vice- President Joice Mujuru seeking an extensive probe on RioZim’s
ownership and control soon after the company had made a public statement
alleging Mzembi had invaded its Renco Mine, but Mujuru did not take any
action.

Allegations against Mzembi came two weeks after the Masvingo South
legislator is said to have been summoned by President Robert Mugabe on the
ongoing labour disputes, which had seen workers going for years with no
salary increment and months without full pay.

Mzembi is believed to have sought to instigate a probe by Mugabe on whether
or not RioZim’s majority shareholder GEM Raintree Investments Limited (Gril)
was indigenous and had really paid the US$12 million for its 24% stake in
RioZim, stepping on the toes of some political heavyweights who are said to
be backing RioZim at all cost.

Details of the February 4, 2013 letter to Mujuru by the Zanu PF officials
indicate RioZim had duped government on its indigenisation compliance plan
and was using the alleged invasion by Mzembi as a smokescreen.

According to the letter, gleened by businessdigest, Gril is run by Nigel
Earl, who is fronted by Redan MD Tafadzwa Chikumbu and KW Blasting fronted
by current RioZim CEO Ashton Ndlovu.

Early last month, Indigenisation minister Saviour Kasukuwere also raised
concern that Gril had not fulfilled the indigenisation requirements after
investing into the struggling local miner without an indigenous partner,
contrary to a widely held view that they had partnered Zimbabwean company,
Raintree Mining.

Gril is a 100% subsidiary of The GEM group, which is owned by foreigners and
chaired by Harpal Randhawa. The investment company acquired a 24,97%
shareholding in RioZim after its US$11,6 million rights issue.

A circular said GEM was in partnership with a Zimbabwean company Raintree.

However, the letter to Mujuru alleges there is no evidence of funding to
improve the company’s liquidity position, making it clear it was an internal
transaction meant to cover each other’s backs and keep assets with no regard
to the economy.

The officials allege RioZim is “a company that bought itself” and planned to
use Renco Mine’s stocks and production to pay for the rights issue at the
expense of labour concerns which are at the centre of the dispute.

“The supposed investor, Gem, has not put money and banks have accepted terms
because they own RioZim. (Elisha) Mushayakarara has been made chairman to
protect the ZB Bank loan and protect the company. It is alleged that Kingdom
Bank agreed to the terms on the backdrop of getting an investor from
Mauritius (and) they are cooperating now,” reads part of the letter.

The shareholder’s operational plan, according to the letter, was to use
Renco Mine’s gold piles and to sell the mine to a South African company only
referred to as DRD.

AirZim to acquire new Embraer aircraft

http://www.theindependent.co.zw/

March 8, 2013 in Business

STRUGGLING national airline Air Zimbabwe plans to acquire two new Embraer
aircraft to service its domestic and regional routes as it seeks to turn
around its fortunes, well-placed sources said this week.

Report by Taurai Mangudhla

AirZim board chairman Ozias Bvute on Tuesday told a parliamentary portfolio
committee on state enterprises and parastatals the company was set to
acquire smaller ranges of the Embraer aircraft for domestic routes but was
not specific on numbers.

“We are in the process of acquiring Embraer planes by way of lease. They are
more fuel efficient and will enable us to fly more regional routes and we
hope we will be able to do that in the shortest time possible,” Bvute told
the committee.

The move is expected to cut down on ballooning operational costs for the
domestic routes as the flag carrier has been using its 105-seater Boeing
737-200 that has less fuel efficiency and has low load factors.

Embraer is one of the world’s leading aircraft manufacturers. The Brazilian
company manufactures its ERJ range which has a seating capacity of between
37 and 50 and is meant for regional and domestic commercial airline
operators.

Bvute also said a team of Chinese engineers was currently working flat out
with their Zimbabwean counterparts on servicing one of Airzim’s MA 60s so
that it starts plying the Harare-Bulawayo-Victoria Falls route soon.

“Contrary to popular belief, the MA60 is actually a good plane and it’s more
efficient. We can’t continue using the (Boeing) 737,” he said.

The MA60 has had a bad reputation in the country after it failed to take off
for Victoria Falls from Harare International Airport in October 2011 and
passengers aboard the Chinese-made aircraft had to be transferred to a
Boeing 767.

The glitch was one of many following Zimbabwe’s acquisition of two MA 60s
from China in 2005 that led to another being presented as a gift to
President Robert Mugabe a year later.

In July 2006-and barely a year after the planes were brought from China- one
of the aircraft reportedly burst two tyres during landing after a forced
turn-back to Victoria Falls following a technical fault on one of the the
engines.

The AirZim chief believes AirZim could regain its glory in the region and
internationally.

In an update on operations, Bvute said Airzim’s load factor had increased to
an average of between six and 70% for the Harare–Johannesburg routes in the
festive season last year.

He said the company was currently targeting a load factor of between 50 to
60% in the short-term while a major turnaround strategy was being
implemented.

“We believe AirZim can still make it,” Bvute told the parliamentarians.

He said there was progress on the airline’s recent acquisition of two Airbus
320 aircraft, one of which had been deregistered and certified under
Zimbabwe’s ownership on a lease basis. The certified plane should start
servicing the Harare-Johannesburg route by April 1, 2013. The other one was
expected to be certified within two weeks.

The two planes are meant to service regional routes, with plans to have
daily flights for the Harare-Johannesburg route, while plans to resume the
Harare –London flight by July are underway.

Air Zimbabwe has been incurring huge operational costs caused by operating
big aircraft for its domestic routes after resuming the
Harare-Bulawayo-Victoria Falls route recently.

At regional level, the airline is currently plying the Harare–Johannesburg
route and plans to have daily flights on that route.
AirZim is currently reeling under a US$190 million debt, which is mostly
owed to other parastatals.

The company also plans to pursue a retrenchment exercise which could see
more than half of its 900-plus employees being laid off.

March 16 vote: Why spend so much on non-event?

http://www.theindependent.co.zw/

March 8, 2013 in Opinion

NOT too long ago, we had Finance minister Tendai Biti telling us of a paltry
figure of less than US$250 being the balance in our national coffers.

Candid Comment by Itai Masuku

This was later contradicted by other members of the unity government, who
probably felt the minister was trying to cause alarm and despondency.

The truth about our national financial position probably lay between the two
claims or it was none of the above.

The reality is perhaps no one knows the truth. We’ll most likely know when
the office of the Comptroller and Auditor-General gives us the accounts some
two years down the line or so, as has traditionally been the case.

By that time, the figures will only be of historical or archival interest.

Right now political leaders seem to be gripped with the conclusion of the
constitution-making process which we understand gobbled up some US$50
million over the past three years or so.

The referendum on the draft constitution, for which we are all being urged
to vote “Yes” without question by our political leadership, is expected to
cost between US$85 million and US$100 million. Together with general
elections this would chew US$250 million.

Isn’t it interesting the process of drafting the new constitution, which
entailed a nationwide outreach programme eliciting people’s views and
collating data, costs four times less than the voting event itself? The
constitution-making process took three years at US$50 million.

Yet the referendum, taking place within a month, needs up to US$100 million.
One is still struggling with mathematics since schooldays!

One is also not completely sure what goes into the voting event itself, but
supposes the ballot boxes have been in existence over the past 30 years or
so, there is an assortment of vehicles to drive officials to various polling
stations, most of which have traditionally been government schools. Surely
the operating costs will mainly comprise administration, fuel, payment of
polling officers etc.

There shouldn’t be much travel by polling officers because these are
normally drawn from civil servants near the polling stations, or they should
be. One would have thought we were going to a referendum on competing ideas
as was the case during the year 2000 constitution debacle.

But given that there aren’t really any competing ideas, why are we spending
all this money on this non-event? Since the masses are being asked to merely
endorse the document by the three main political parties in government, why
don’t the parties save the money, raise civil servants salaries or
something, so that they are motivated to be civil to us when we go their
offices and indeed behave like our servants, and not the other way round,
instead of wasting funds on a charade?

Anyone who has gone to the passports office knows what we’re talking about
here.

To make matters worse, those in the know tell us the current constitution is
hardly different from the Kariba draft, which itself was not much different
from the 2000 draft in some respects.

Overall, there is also very little difference between this draft and others
which lie in government offices. Next time we have such a situation we
should learn to use our brains to save money.

Mugabe hero-worshipping scales new toadying levels

http://www.theindependent.co.zw/

March 8, 2013 in Opinion

LAST Saturday was one of those days in Bindura, about 85km north of Harare,
so eloquently described by famed African author Chinua Achebe as a moment
“when the sun seemed so determined to bake the life out of every living
creature” at the stadium.

Report by Elias Mambo

Right up to midday, the scene at Chipadze stadium where President Robert
Mugabe celebrated his 89th birthday could have been taken straight out of
Achebe’s classic Anthills of the Savannah.

With a wry sense of humour, Achebe captured the condition of poor ordinary
people thronging political gatherings and waiting in the searing heat while
observing the empty comfortable seats awaiting privileged political
personages.

Thousands of people from all walks of life thronged the stadium and waited
in the scorching sun for Mugabe and his entourage to arrive.

They came in sleek vehicles, some on bicycles, tractors, trucks and others
on foot. Villagers and other ordinary Zanu PF supporters started arriving as
early as 7am and by 11am the stadium in the sleepy mining town of Bindura
was chock-full.

True to form, Zanu PF heavyweights began trickling in around midday in posh
cars, making their way to tents so strategically positioned to shield them
from nature’s vagaries.

The scene at Chipadze was reminiscent of recent events in North Korea during
the commemoration of the late Kim Jong-il’s birthday.

North Koreans are unmatched when it comes to hero-worshipping their leaders
whom they treat with reverence and awe.

On February 16 they were seen all over the media bowing in front of a
portrait of late leader Kim Jong-il in Pyongyang, commemorating the birthday
of the dead leader they still continue to deify.

Kim Jong-il, also romanised as Kim Jong II, was the supreme leader of North
Korea from 1994 to 2011. He succeeded his father and founder of the
Democratic People’s Republic of Korea Kim Il-sung following the elder Kim’s
death in 1994.

Following his death, he was succeeded by his third son Kim Jong-un. His
birthday is a public holiday in the country.

In theatrical scenes to mark Kim Jong-il’s birthday, emotional tributes and
documentary footage were broadcast on state television commemorating the
“Day of the Shining Star”, paying homage to a leader who died of a heart
attack two years ago at the age of 69.

It was just a spectacle. The wild pomp and ceremony surrounding the event
reflects the North Korean state’s attempts to bolster the near mythical
personality cult surrounding the Kim dynasty, which has intensified since
his death.

While Zimbabweans in general cannot match North Koreans in glorifying and
singing praises for their leaders, there is a sycophantic section of society
which hero-worships Mugabe. It was evident at Chipadze stadium.

When the Master of Ceremony asked the gathering to rise to their feet to
welcome Mugabe, the crowd automatically leapt to its feet and started
chanting affectionately “Gushungo, Gushungo”, Mugabe’s totem.

But to people’s amazement, a group of senior party officials led by the
powerful Defence minister and presidential aspirant Emmerson Mnangagwa
strode into the stadium. This did not deter the enthusiastic crowd who
continued chanting “Gushungo,Gushungo” until Mnangagwa sat down.

Mugabe, clad in an elegant khaki suit, dark cream shirt and matching tie,
only made his grand entrance an hour later. Accompanied by his wife Grace
and two children, Bona and Chatunga Bellermine.

The deafening cheers sadly could not inspire his 89-year old frail-looking
frame –– whom supporters have been comically hailing as “the greatest
statesman of all time”, “fountain of wisdom”, “supreme leader”, among other
fawning tributes – to run with the 89 balloons like he usually does on his
birthday celebrations.

At the high table, Mugabe was flanked by Vice-President Joice Mujuru and
Grace. Zanu PF youth secretary Absalom Sikhosana, national chairperson Simon
Khaya Moyo, Zimbabwe Defence Forces Commander Constantine Chiwenga and Air
Force boss Air Marshal Perence Shiri joined the president at the high table
where VIPs surrounded him to pay homage.

Traditional chiefs, students, diplomats and youth representatives of former
liberation movements from Sadc also attended the celebrations.
The centrepiece of the bash was gigantic five-piece cake housed in an open
tent and displayed at the centre of the field. Its two largest parts
depicted the Mashonaland Central landscape, with its tobacco and other crops
as well as the mining activities.

The other piece depicted the Zanu PF headquarters surrounded by the party
flag while the third piece was an artistic impression of a hoe and a gun
which tells the story of Zimbabwe’s liberation struggle and land reform.

Government and party officials fell over each other showering Mugabe with
gifts and praises. He received so many gifts, including cattle, sheep, goats
and money. Despite all the hectic activities and noise around Mugabe, his
wife and Mujuru on many occasions had to nudge him to keep him alert. From
close quarters it was also evident he is now frail.

Even though he spoke for more than one hour, his keynote address was
characterised by slurred speech. Mugabe himself admitted in his recent
interview on the eve of his birthday he was reeling from dotage.

“If one looks at it from the point of age, when one was growing older and
before, all the time, each day, each month was an addition to one’s age and
it meant, of course, some measure of wear and tear,” Mugabe said.

“We all suffer from that: wear and tear.” While Mugabe’s spirit is still
willing it is now evident the flesh is weak.

It’s shaping up like 2008 all over again

http://www.theindependent.co.zw/

March 8, 2013 in Opinion

After a brief hiatus, ZBC’s coterie of political “analysts” has finally
returned. Their brief is usually to commend Zanu PF and condemn whatever the
MDC-T does.

By The MuckRacker

This time around the analysts were “hailing” the Zanu PF side of government’s
stance not to invite observers from countries that are “hostile” and have
imposed “illegal” sanctions on Harare.

Ceaser Zvayi ironically accused the West of having a “holier than thou”
attitude even though he feels it’s ok for his handlers to declare they are
the only party fit to rule Zimbabwe.

Zvayi observed a “worrying trend” that some of the Western observers come as
competitors, referees and sponsors of some of the contesting parties. He,
however, seems unfazed by his role as a Zanu PF apparatchik despite
masquerading as an objective journalist.

‘Progressive’ arnachy

Another “analyst” Hildegard Manzvanzvike unhelpfully chipped in saying the
decision to bar Western countries from observing the polls was mostly due to
“illegal” sanctions.

It was Zimbabwe‘s sovereign right, Manzvanzvike opined, to choose
“progressive” bodies to come and observe the elections.
We are sure Cde Coltrane Chimurenga and his December 12 Movement rank among
these “progressive” bodies.

Readers might remember Manzvanzvike’s infamous claim that Harare’s Africa
Unity Square used to be Cecil (John Rhodes) Square even though Cecil Square
was named after Robert Cecil, Earl of Salisbury, not Cecil John Rhodes.

Angry on their behalf

On the flipside ZBC unleashed another batch of “analysts”, this time to
lambast Prime Minister Morgan Tsvangirai for his “desperate attempt to
discredit the country ahead of the referendum and elections”.

The rant comes in the wake of the outrage that ensued following the death of
an MDC-T official’s son Christpowers Maisiri.
Making up for lost time Jonathan Moyo let it rip on the MDC-T, accusing the
party of having a “hidden agenda to cause disharmony and disrupt the country
from holding a peaceful referendum and elections”.

Charity Manyeruke, always charitable in her comments about President Mugabe
and Zanu PF, wanted to “remind” the MDC-T that the same country they are
discrediting is the one they “pretend they want to lead”.
“Zimbabwe is for Zimbabweans, the MDC-T should just stop playing politics to
satisfy their master,” fumed Manyeruke, who was clearly angry on Zanu PF’s
behalf.

Charity begins at home

While Zanu PF apologists were frothing at the mouth accusing the MDC-T of
“causing disharmony” and disrupting the peaceful holding of elections, war
veterans in Bindura threatened to deal with all those who did not vote for
Zanu PF.

The Standard reports that Bindura war veterans chairman, Elijah Dondo, said:
“If it means going back to war again, then we can, because we can’t let the
country get re-colonised while we are watching.”

Very soon, Dondo ominously declared, war veterans will start “teaching” the
youth how to “defend” the country.

Such brazen inciting is unlikely to elicit censure from the so-called
analysts lest it get in the way of a good fable.

Bosom buddies

Some weeks ago the Zimbabwe Independent reported that Equatorial Guinea was
Zanu PF’s main benefactor in the oil sector.

Equatorial Guinea’s ruler Teodoro Obiang Nguema Mbasogo who heads the tiny
state has been attempting to integrate into international organisations like
Ecowas. But his record has not been altogether clean. And his son is even
worse according to French press reports.
Obiang came to power by removing his uncle who was incarcerated and tortured
to death. Zimbabwe’s delegation was probably impressed!
Laying down the law

It was good to see Sweden laying down certain fundamentals ahead of the
referendum.

It was clear from talks between Foreign Affairs minister Simbarashe
Mumbengegwi and Sweden’s International Development Cooperation minister
Gunilla Carllson that Zimbabwe wants to get away with electoral manipulation
and at the same time have sanctions lifted.

Government has invited observers from “friendly countries” to observe the
referendum, we were told, but the US and EU don’t fall into that category.
Incremental lifting won’t do either.

The Swedes must be aware of the tragedy that has befallen the Maisiri
family. Yet Mumbengegwi wants to pretend nothing has happened.

“I emphasised to the minister that we have taken a clear and uncompromising
position that there will be zero tolerance to violence as we move towards,
during and after elections.”

That looks good on paper. But what Mumbengegwi doesn’t understand is that it
has to be implemented on the ground. You can’t make grand declarations of
intent and then burn opponents to death!

And Zimbabwe’s leaders actually claimed the Maisiri family had been lying.
Can you imagine the pain the family felt with that canard?
Then we had statements from the army about refusing Morgan Tsvangirai access
to State House if he won the election.

Zanu PF clearly believes such behaviour tolerable. The EU doesn’t. Nor does
civil society.

So we already have a compromised election. It’s 2008 all over again.

Experience best tutor

We found first lady Grace Mugabe’s statements to Miss 21st February beauty
pageant contestants a tad curious.

She reportedly urged young women against being wooed by older men whom she
said will lead them to destruction.

“You should be careful not to be abused by older men who use money to lure
you into unsanctioned marriages and other immoral activities that destroy
marriages and produce unwanted babies,” she said.

These are telling remarks considering her own predicament. Hopefully her
listeners heeded her advice despite the hypocrisy.

Grace Mugabe, however, wasn’t done with pontificating, something she has of
late taken to with gusto. Zimbabweans, she stated, should avoid violence in
the coming referendum and harmonised elections.

Zanu PF has been in existence for a long time “in a period punctuated by
peace and tranquility”, we were told. Such a “tradition” should be sustained
and maintained for progress.

We are sure the victims of Zanu PF inflicted violence since Independence up
to the orgy of the 2008 presidential election runoff were not amused.

Men of the froth

Finally Muckraker was amused by the sycophancy exhibited by one of the
apostolic sects “leaders” mushrooming all over the show and claiming to
speak on the diverse groupings’ behalf.

“We are pained by the fact that the president is not receiving much support
from Matabeleland although he is supposed to be respected just like any
other king and ruler of a land,” Josiah Ndlovu, chairman of the fishy
Association of Apostolic Churches in Zimbabwe Matabeleland chapter.

“We support the President and the party as a whole. The kings of the land
must be supported and respected such that even if something happens tomorrow
or the future looks uncertain, people would still remember fondly their
kings.”

That is unlikely to happen in Matabeleland given how much that region has
given Zanu PF its marching orders over the years.

Another “prophet”, Madzibaba Medaldo Ruzungunde, who NewsDay reports was
recently jailed for seriously assaulting a former congregant, was at pains
to shower as much praise on President Mugabe as his vocabulary could muster
describing him as a “God given and inspiring leader”.

“We should pray that President Mugabe should be given more years and that he
reaches the 120 years mark,” Ruzungunde yelped.

He is of course joined by the equally dubious and not-so reverend Obadiah
Msindo who described Mugabe as the “black Moses”.

So much for the so-called spiritual intelligence!

Administrative devolution an economic necessity

http://www.theindependent.co.zw/

March 8, 2013 in Opinion

Of the many issues which must be seriously addressed in assuring a
substantive recovery of Zimbabwe’s traumatised economy, a critical one is
that of administrative devolution in both public and private sectors.

Column by Eric Bloch

While there are recurrent demands by many for political devolution, of far
greater importance is the need for administrative devolution within the
corridors of government and by many essential economic entities.

Although there is much justification for some of the demands for political
devolution, effecting such decentralisation should not be to such extent as
to endanger national unity, and as would to all intents and purposes result
in that which would be tantamount to the secession of provinces that
constitute Zimbabwe, into separate, independent, countries.

To a large extent, political devolution should be centred on, according to
local authorities a high degree of autonomy on all issues that do not have
material national repercussions, including the access to and provision of
utilities and services to residents within local authority areas, and the
economic entities operating in those environs.

In contradistinction, the pronounced absence of administrative devolution is
a major retardant to the wellbeing of the economy in general and of the
populace in all areas of Zimbabwe other than those in the capital city.

Almost without exception, any and all decision-making authority within
governmental ministries and parastatals as well as other state enterprises
is confined wholly to their head offices, most of which are in Harare.

The offices elsewhere in Zimbabwe are empowered to do nothing other than
carry out functions of an administrative nature and to serve as quasi-post
offices in forwarding issues to their head offices for consideration,
determination, and processing.

In all our government ministries the personnel of those ministries in
locations other than Harare are devoid of any substantive determinative
authority, and all too frequently are even barred from effecting routine
processing of documentation.

A like circumstance exists within most parastatals, including those
concerned with energy generation and distribution, telecommunications, air
travel, and other essential elements of economic activity, development and
growth.

This cataclysmic, excessive, concentration of authority and action upon the
capital city severely constrains timeous resolution of key issues, as well
as mandatory compliance with the law by almost all commercial and other
economic entities and activities in the diverse cities, towns, and rural
areas which prima facie are key components of the Zimbabwean economy.

Moreover, the excessive concentration of decision-making (within the
boundaries of prevailing laws and policies) and of much administration, on
head offices does not pertain only to governmental bodies, but also to many
private sector institutions with a national presence.

These include banks, building societies pension funds, insurance companies,
retail chains, and many others. Branch managers (with a few notable
exceptions) are accorded miniscule decision-making jurisdiction, they being
obliged to refer almost all matters necessitating decision to their head
offices, national credit committees and the like.

A primary negative consequence of the intense concentration of
decision-making authority is to demotivate investment beyond the environs of
Harare or in close proximity to that city, and often, motivate existing
enterprises to relocate to the capital.

Moreover, most enterprises that remain situated in the diverse centres
outside Harare are either subject to greater than necessary operational
costs, due to having executives or other personnel all too often commuting
to Harare, or suffering considerable operational prejudices due to the
delays involved in referring issues to head office, awaiting responses
thereto, and often having to make additional and supplementary submissions
or representations.

Yet another consequence of the appalling great retention of total
determinative authority (no matter the degree of importance or unimportance
of the issues) on a centralised basis is that many, and especially the
skilled, seek to be employed or economically operational in Harare,
depriving other centres and their inhabitants of recourse to such
economically or socially essential skills, save and except if resorted to by
costly and time-consuming travel, or other communication to Harare.

Since 1980, government has recurrently and dogmatically declined any and all
requests by any of the international embassies functioning in Harare for
consent to establish consulates or other representative facilities anywhere
beyond the boundaries of 40km of the capital city (with the sole exception
of Mozambique having been granted consent to have a consulate in Mutare).

Undoubtedly the motivation for this constraint is to enable government to
maximise its monitoring of the activities of international diplomats, but
the consequence is a massive prejudice to those of Zimbabwe’s populace in
general, and those possessed of foreign nationalities in particular,
including recurrent needs to travel to Harare and consequently being
subjected to generally substantial costs, as well as their attendant loss of
valuable productivity time in their centres of residence.

This policy is in sharp contrast to that of many other countries worldwide
and within Southern Africa, as evidenced by the extent that many diplomatic
missions have a presence in both Pretoria and Cape Town, as well as some
also having such presence in Johannesburg and Durban.

Within the private sector there are many comparable examples of absence of
devolution. Almost without exception, any application for loans or other
funding facilities to banks and other financial institutions must be
referred to centralised credit committees.

There are no such regional committees (even if they would be constrained to
determinations within pre-prescribed criteria and constraints) nor any
substantial vesting of authority in branch managers.

This applies similarly to the purchasing, marketing and merchandising
divisions of many national chains within the distributive trade.
And these are but a few examples of the absence of administrative devolution
in Zimbabwe, and of the related economic prejudices therefrom.

Referendum Zec test case

http://www.theindependent.co.zw/

March 8, 2013 in Opinion

ZIMBABWEANS are expected to vote in a constitutional referendum next week on
Saturday to adopt Copac’s flawed draft constitution in an event which would
be a test case of the Zimbabwe Election Commission (Zec) preparedness ahead
of crucial general elections in July or later this year.

Zimbabwe Independent Editorial

Zec was established in 2005 and later that year a constitutional amendment
was passed which, among other things, abolished the Electoral Supervisory
Commission and institutionalised the new entity as a constitutional body.

Zec’s main function is to “prepare for, conduct and supervise elections and
referenda and to ensure they are conducted efficiently, freely, fairly,
transparently and in accordance with the law”.
The referendum — a curtain raiser before the watershed elections — is a
litmus test for Zec.

While Global Political Agreement principals managed to resolve all
outstanding issues on the new draft constitution, clearing the path for the
referendum, new problems have arisen mainly relating to financial,
logistical, legal and technical issues.

Zec had initially drawn a budget of US$220 million for the referendum and
elections, but the amount was later revised downwards to US$192 million
after the scrapping of the delimitation of constituencies.

ZEC now says at least US$85 million is needed for the referendum, while
elections would require US$107 million. Government is scrounging US$250
million for the referendum and elections.

After United Nations Development Programme recently said it would take long
to release funds to Zimbabwe due to bureaucratic procedures, government
approached private sector companies to look for money.

Although some companies have contributed, the reality is government is
struggling to finance the referendum and elections.

As things stand, Zec is struggling to put together preparations for the
referendum largely because it was not given enough resources and sufficient
time.

That is besides its own lack of capacity and instability shown by the
quitting of its chairman retired Justice Simpson Mutambanengwe who was
replaced with Justice Rita Makarau whose appointment some stakeholders say
was unprocedural as it did not follow due process.

Zec is currently under immense pressure to perform because if it bungles the
referendum before elections its credibility would be in tatters.

The referendum is a major test of competency and credibility for Zec whose
image was thoroughly damaged during the 2008 general elections after it
spent five weeks holding onto the results of the first round of the
presidential poll which President Robert Mugabe had lost.

Zec also had problems with parliamentary election results in some
constituencies, besides running Mugabe’s one-man charade during the June
presidential election runoff.

Given all this, Zec must successfully run the referendum to gain experience
and establish its credibility as an independent and impartial body.

If it botches the referendum that will affect its integrity and reflect
adversely on its capacity to competently handle its next big test —
elections.

Already it is facing problems of hiring of polling staff, dealing with
postal votes, ensuring transparency on processes and how to count votes and
communicate results, among other things.

The referendum date was rushed because principals are now short-circuiting
processes to stampede the nation to elections, without realising this might
cause serious chaos and disputed results.

Mugabe ‘lonely’ admission revealing

http://www.theindependent.co.zw/

March 8, 2013 in Opinion

PRESIDENT Robert Mugabe for the first time made an unwitting yet stunning
admission he belongs to a bygone generation and era when he said his
colleagues in government are “children” during an interview with state media
last week on the eve of his birthday celebrations in Bindura.

Editor’s Memo with Dingilizwe Ntuli

“Why is it that all my friends are gone and my relatives are gone and I
continue to linger on?” Mugabe told ZBC TV. “Then I say to myself, well, it’s
not my choice, its God’s choice. This is a task the Lord might have wanted
me to fulfill among my people. I read it as a bidding of God… The bidding
says you move forward ever.”

Quite apart from increasingly absurd claims which Mugabe and his loyalists
are now repeating with disturbing frequency that he has a divine mandate to
continue ruling, the president made an interesting and revealing disclosure
that he feels lonely because his real contemporaries are now gone, leaving
him to deal with “children”.

He says his cabinet colleagues are “children” in terms of longevity,
knowledge and experience.

Mugabe cited Presidential Affairs minister Didymus Mutasa as being closest
at 77 years old. He also lamented not being able to reminisce with
colleagues about chasing girls and riding bicycles in the 1930s and 1950s.

Mugabe’s true contemporaries were the likes of Simon Muzenda, Joseph Msika
and Herbert Chitepo. Nationalists such as Joshua Nkomo, Ndabaningi Sithole
and Leopold Takawira were slightly older than him.

All of them are gone and he is the only high profile political leader
remaining from that generation.

So for that reason Mugabe’s remarks are understandable, but very revealing.
While Mugabe might have been expressing his genuine feelings and nostalgia,
he in the process finally admitted, albeit unwittingly, that he is now too
old and belongs to yesteryear’s generation.

Put differently, Mugabe confirmed inadvertently that he now needs to go and
rest. There has never been such a compelling call for Mugabe to go than the
one he made unintentionally.

For years now, Zimbabweans have been urging Mugabe to quit, partly because
he has played his part, ruined the country, and also on age and health
grounds.

Indeed, in the same interview he admitted as much that he has suffered so
much “wear and tear” that he is now feeling the impact, especially given his
hectic schedule as head of state and government.

Surely calling Media minister Webster Shamu (67) a child is ludicrous, a
reflection of Mugabe’s old age and the generation gap with his colleagues.
Officials of Shamu’s age, whom Mugabe is describing as kids, are the
generation in power across Sadc and around the world.

Putting aside United States President Barack Obama who was born in 1961 when
Mugabe was already in politics, nearly all Sadc leaders are not in Mugabe’s
generation in terms of age and years in power. Only Angolan President José
Eduardo dos Santos belongs to Mugabe’s era in some respects. He has been in
power for 34 years, compared to Mugabe’s 33, but is 19 years younger at 70.

Outgoing Kenyan President Mwai Kibaki is the only regional leader closest to
Mugabe’s age at 81. South African President Jacob Zuma is 71, Botswana’s Ian
Khama (60), Namibia’s Hifikepunye Pohamba (77), in other words Mutasa’s age,
Zambia’s Michael Sata (76), Mozambique’s Armando Guebuza (70) and Tanzania’s
Jakaya Kikwete (62).

Look at the gap in government –– Vice-President Joice Mujuru is 57 years and
her main rival for the Zanu PF leadership Defence minister Emmerson
Mnangagwa is 66, at least officially. If their generation cannot rule now,
then at what age must they come in?

Mugabe is the world’s second oldest head of state after Shimon Peres of
Israel who turns 90 in August.

The only other octogenarian heads of state are Saudi Arabia King Abdullah
bin Abdulaziz (88); Ethiopian President Girma Wolde-Giorgis (88), Italian
President Giorgio Napolitano (87), Britain’s