Zimbabwe Situation

‘State capture on steroids’ – Zimbabwe Vigil Diary

Source: ‘State capture on steroids’ – Zimbabwe Vigil Diary: 13th February 2021

A detailed report published by South Africa’s online publication Maverick Citizen examines the extent of the corruption which has reduced Zimbabweans to poverty and despair.

The paper speaks of a network of cartels plundering the country. It defines cartels as arrangements ‘characterised by collusion between the private sector and influential politicians to attain monopolistic positions, fix prices and stifle competition’.

The activities of cartels involved ‘abuse of power by office holders as a means to generate ill-gotten profits for themselves and their cronies’. As if to highlight this, we learnt this week that known crook Henrietta Rushwaya has been reinstated as president of the Zimbabwe Miners’ Federation (see: https://www.zimlive.com/2021/02/09/zimbabwe-miners-federation-re-instates-henrietta-rushwaya-as-president/).

Rushwaya, who is close to the Mnangagwa family, was sacked after being arrested at Harare airport trying to smuggle gold to Dubai. She said she had picked up the heavy bag loaded with gold ingots by mistake instead of the light bag with her knickers in. An easy mistake to make! She was released on bail unlike opposition activists who rot in prison awaiting court hearings on trumped-up charges.

The massive scale of what is described as ‘state capture on steroids’ is documented in the lengthy report, which names President Mnangagwa as one of the bosses who run lucrative cartels in a wide range of commodities.

The report says Zimbabwe may be losing up to half its GDP (the annual value of goods and services produced) through corrupt economic activity, including US$3 billion in gold and diamonds smuggled out of the country every year.

It cites an illicit payment of Zim$3.3 billion made in 2019 to Sekunda, a fuel company owned by Kudakwashe Tagwirei, an ally of Mnangagwa. Sekunda was supposed to receive only Zim$330 million and the shortfall was met by the central bank printing money, causing a massive overnight devaluation of the Zimbabwean dollar. (see: https://www.dailymaverick.co.za/article/2021-02-09-how-cartels-operate-and-their-impact-on-the-people-of-zimbabwe/).

The Maverick Citizen editor says the report ‘provides a post mortem on the cancer that killed the Zimbabwean dream of freedom and independence’.

Jim Risch, a senior member of the US Senate foreign relations committee, said it ‘exposes the destructive effects that elite cartels play in robbing the country’s future . . . the Zimbabwean people deserve better’.

Peter Hain, a former British cabinet minister, describes the report as ‘explosive’ while the MDC Alliance senator David Coltart tweeted: ‘if you are puzzled why such a wealthy country, with such intelligent, well-educated people can be so poor then read this report’. (See: https://www.dailymaverick.co.za/article/2021-02-10-daily-maverick-report-on-zimbabwe-state-capture-gains-international-attention/.)

Other Points:

Notices:

         Vigil: https://www.facebook.com/zimbabwevigil

         ROHR: https://www.facebook.com/Restoration-of-Human-Rights-ROHR-Zimbabwe-International-370825706588551/

         ZAF: https://www.facebook.com/pages/Zimbabwe-Action-Forum-ZAF/490257051027515

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