Chinamasa ropes in security chiefs on economy

via Chinamasa ropes in security chiefs on economy | SW Radio Africa by Nomalanga Moyo on Friday, May 2, 2014

Finance Minister Patrick Chinamasa has turned to security chiefs in his frantic search for a solution to the country’s economic mess, media reports suggest.

A Friday Zim Independent report said the minister briefed the Joint Operations Command, which comprises heads of the army, police, and the intelligence on April 17th.

It is no secret that the finance minister, a lawyer by profession, is out of his depth on economic issues which he now wants dealt with as a security matter.

In March, rumour circulated that ZANU PF leader Robert Mugabe was seriously considering sacking him and replacing him with blue-eyed boy Gideon Gono.

During the meeting with the service chiefs, Chinamasa reportedly told them that he had looked East and West for a bailout but had been snubbed by all the traditional lenders, including ZANU PF ally China.

He repeated the remarks at a business indaba in Bulawayo last week when he said Zimbabwe’s credit record is so bad that no-one wants to lend to the country.

“Whether we go to Zambia or to Malawi, it’s the same thing because we are indebted to these countries. We are on our own and we have to be more innovative,” Chinamasa said.

Retired army major Giles Mutsekwa said by turning to the service chiefs at this key moment, Chinamasa had shown that they are the party’s centre of authority.

“Service chiefs control the politics in ZANU PF and now Chinamasa has confirmed that they also run the economy,” said Mutsekwa.

“They control mining and all of the country’s resources. Maybe Chinamasa is trying to get them to channel the proceeds from these sectors to Treasury.”

Or perhaps as the main players in the business and economic sector, the service chiefs were beginning to feel the effects of the burning economy,” said Mutsekwa, who is also the MDC-T’s secretary for defence.

Political observers say the country’s deepening economic mess is a symptom of the crisis of legitimacy that the ruling party plunged itself into when it stole the ballot.

“We will keep saying it, that they rigged the elections, but now they are failing to rig the economy,” the MDC-T’s Mutsekwa added.

Economist Godfrey Kanyenze said the only solution to the economic problems lies in ZANU PF transforming the way it is governing the country.

“Many lenders are waiting to see how Zimbabwe performs on the IMF debt clearance plan agreed on last year before they can part with their funds,” he said.

Kanyenze said despite the agreement, the government is failing to implement resolutions that will put the country’s economy on the road to recovery and as such, no-one wants “to throw their money into a pit”.

“When an IMF team visited early this year to assess progress they found that Zim had ignored some of the issues agreed on. Issues such as reducing the public sector wage bill and minimising the vulnerabilities in the banking sector,” Kanyenze said.

The ZANU PF government owes international finance institutions $10 billion. The World Bank expelled the country in 1999 over its unsustainable economic policies. The IMF suspended the country in 2001 and subsequently expelled it in 2005 after the ZANU PF regime stopped servicing its debt.

When Chinamasa took over as Treasury chief after his party ZANU PF’s disputed 2013 poll victory, the economy was relatively stable.

Many attribute this stability to the hard work of MDC-T official Tendai Biti, who was the Finance Minister during the life of the negotiated coalition government.

In just nine months the ZANU PF regime, which constantly clashed with Biti over his insistence on fiscal discipline, has driven the economy back to the brink through corruption, reckless spending, and failure to implement sound policies.

The country is also suffering from a lack of investment, with weekly company closures, job losses, capped by hostile indigenisation policies.

Recent utterances by Mugabe, Chinamasa and Indigenisation Minister Francis Nhema suggest that they may be rethinking the policy used to claim a 51% stake in foreign-owned firms, but this has not been backed by any amendment to the law.



  • comment-avatar
    Jono Austin 9 years ago

    Chinamasa find the money! I like how Bob has loaded this creepy lawyer with the responsibility of sorting out the fiscal mess created by his ruinous decisions. Bob says ‘I’m not the one-Chinamasa sort it out.’ Typical. Chinamasa is running around with his pants on fire and there’s no bucket of water.

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      Jono my brother, Zanu does not need to find any money. They need to let the proper farmers FARM.They need to leave the Banks to bank. They need to let the manufacturers manufacture.They need to let the investors invest.They need to let the sportsman play sports. They need to let the tourist tour, but most of all they need to let the voters vote.

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    African Warrior 9 years ago

    Zimbabweans, we must choose between two bad choices:

    Choice 1: To submit sheepishly to Zanu(pf)’s abuses and die hungry and suffering. This way we leave the same legacy (of suffering) to our children while the corrupt in Zanu continue to loot everything.

    Choice 2: To (possibly) die removing Zanu(pf) from power and (possibly) live a better life afterwards. This way we leave for children a better future with hope. A Zanu-free future.

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    kutongwa nonjazi 9 years ago

    There is nothing wrong with learning and copying others who are running their economies with great success. Look @ Angola, Botswana, Uganda….Ghana. I am not going to mention developed countries. We continue to get it all wrong,,,,by choice

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    Maybe the CIO will kidnap the economy, torture it and make it disappear?

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    Methinks 9 years ago

    The problem with lending zimbabwe any penny is that if zim asset costs $27b to implement, then the government actually needs to borrow over $50b to cover corruption costs, undeserved salaries and inefficiencies.

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      Jono Austin 9 years ago

      I would put the ratio at about 10:1 You need $270 billion. So it’s not going to happen.

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    Chinamasa needs the Army/CIO/Police on side. He knows he cannot keep paying them (basic salaries) and when that happens there will be a coup. Don’t pay the cops and soldiers there will be problems..

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      Don Cox 9 years ago

      There may well be a coup and a military dictatorship is very likely, but neither will create money.

      Only a fool would lend any money to Zimbabwe or invest there under the present regime. You may as well throw the money in the sea.

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    last kicks of a dying horse

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    Mseyamwa 9 years ago

    Good idea Chinamasa, the security chiefs will shoot the hard economic hardships desd, and we will all live happily ever after. This is what’s known as ‘kutsvaga uta mugate’ (searching for arrows from the kitchen pots in the heat of the battle). If that was the solution, I’m sure ZANU would have preferred that routebefore going to the East ot the West and risk ‘egg on it’s face’ that it got. We are fast reaching the end of the rope. Who are you going to approach next? The chiefs, the village headmen, kwamudhibhisi?

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    Chinamasa.OMG he is now able to read and write Praise The Lord. What a bunch of useless stinking morons.

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    The Observer 9 years ago

    That’s why they are keen to topple Morgan because they have realized that the MDC was the stabilising element & cannot do without it but they hate Morgan hence mBiti & gang’s antics. Morgan is the brand they are trying to steal. Morgan suffered for it.

    Let the 90-year old dictator stew in his sweat.

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    Insider 9 years ago

    What Chinamasa said to the Security Chiefs was that the country has run out of money, in the very near future we will not be able to pay you or your men. You had better start planning for this moment! The country is finished unless a miracle occurs, miracles are in short suppy in Zim. It will be most interesting to see what the SF Chiefs do about this!! Maybe there will be a coup, it doesnt really matter as there is no legitimacy now there certainly will not be any after a coup. The world economic community will contine to tighten the screws as they have since last years “elections”. Wake up guys, smell the coffee it is all over bar the shouting. Change your ways or die!!!

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    Msizeni silwelani 9 years ago

    Worst economy in peace time. Everything is really wrong from the trees to us.

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      vovonde 9 years ago

      “Tichagutsa munhu wose novufumi bwe Zimbabwe…inyika yavatema:”.chimurenga song(1974) ma 1. Wishful thinking, lies and deception. Mugabe Commander in Chief of magandanga looters. Zvokwati irikubuda pachena.

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        vovonde 9 years ago

        A government run by PhDs…..who can’t even run a tuck shop.
        Dzidzai kuna David Smith the finance godobori.

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    truth 9 years ago

    dig again the causes of all this there lies the answer. only one mistake destroy the nation.

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    Gondobwe 9 years ago

    Well done Chinamasa! You have taken the problem where it belongs – the army and CIOs. These are the people who plan day and night to subvert the people’s freedoms and aspirations. They think that only them are entitled to enjoy the wealth of Zimbabwe. Now lets see whether they can print the US$.

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    roving ambassador. 9 years ago

    Just a bunch of idiots and looters. They have run out of [ideas] steam. Its show time . Brace up for the crash landing.

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    Here comes the Zim dollar

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    Lets put things into perspective here. We need to know where we are on the world rankings so we know the extend of the climb we need to embark on to bring ourselves from the hole we dug ourselves into. According to Forbes Report of the “World’s worst economies” of 2010, Zimbabwe was number 195 out of 195 conutries in the report.The following year, 2011, Forbes reported that “Onetime losers like Ghana and Zimbabwe got their economic acts together…..” (moving out of the top 10 worst performers list). So what did we get right during the period under review? Were the sanctions still in place? What has changed now?
    Coming to Africa, how are our peers fairing and what can we learn from them if our eyes are blind to the “imperial west”?
    Africa’s top Performers in order:
    1. RSA
    2. Egypt (despite current political turmoil)
    3. Nigeria (despite perceived corruption)
    4. Algeria
    5. Morocco
    6. Angola (with a dictator in power for a very long time)
    7. Sudan (despite all the bad and sanctions)
    7. Tunisia (the seat of the AfDB)
    9. Libya (despite events of the last few years)
    10. Ethiopia (who would have imagined. That B777 flying into HRE daily is not for political expedience. Africa’s most profitable airline).
    11. Kenya
    12. Tanzania ( they got all wrong in Nyerere’s day but are now on track)
    14. Cameroon
    15. Uganda
    16. Cote d’ Ivoire
    17. Senegal
    18. Equatorial Guinea
    19. DRC
    20. Gabon

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    David 9 years ago

    How many of you are aware of the fact that Comrade Strive Masiwa, the CEO of Econet has funded ZANU PF for as long as he has been around. They have laundered billions through his organization and there you all are praising this Masiwa character from the top of roof tops. He is just as responsible for our economic downfall as Mugabe and his thieves are!!!!

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    This is not what the country was promised by Makandiwa,the man of God.As far as i understood the prophecy,this is the time,this the year for good things in Zimbabwe,not the opposite.May be the Minister of Tourism or SK Moyo can agree with me.

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    Mlimo 9 years ago

    Soon the money will stop flowing that will make it really interesting. Not the time to invest in Zimbabwe

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    protestor 9 years ago

    Take the problem back to its creators the security services we need our diamond money back

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    Patriotic 9 years ago

    Just wait and see mati madii