Zim Independent
Eric Bloch Column
By Eric Bloch
THERE is an old fable of an emperor who appeared
before his subjects wearing
no clothes. He was completely naked, but none of
his subjects reacted to his
nakedness.They were fearful of his possible
anger if they caused him
embarrassment by focusing upon his nudity. Instead,
they all enthused
widely, praising highly his non-existent outfit. This
continued until
eventually an innocent child spoke out, saying what all
others were scared
to say: "The King is in his birthday suit, he's not
wearing any clothes".
Life in Zimbabwe has a very great similarity, in
one respect, to that fable.
Never endingly, for over 25 years, Zimbabweans
have ululated with great
ecstasy at many of the pronouncements of the
country's political leaders,
irrespective of whether or not those
pronouncements have any substance, and
wholly disregarding the many
occasions when the facts on the ground are
diametrically opposite to that
which the government spokesmen state.
One of the most recent instances of
widely excited reception of assurances,
promises and statements devoid of
reality, occurred last week when the
president addressed a gathering of war
collaborators at the Zanu PF
headquarters.
The crowd cheered
vigorously at almost all that the president said, yet much
of the content of
his address demonstrated that his advisors and minions
continue to misinform
him as to what is genuinely the state of affairs in
Zimbabwe. That was
clearly apparent from the extent that he repeated
unfulfilled, previously
given assurances which are so overwhelming.
The president informed his
audience that government was "working tirelessly"
to address the
socio-economic challenges created "by a combination of
drought and
sanctions" imposed on the country by Britain and her Western
allies.
In practice, neither of these factors have been significant
in the creation
of the ever greater economic morass that has afflicted
Zimbabwe for the past
eight years.
Whilst it must be acknowledged
that much of the country was the victim of
severe drought conditions during
the last agricultural season, the negative
impacts of drought would have
been relatively minimal had it not been for
other governmentally-created
circumstances.
The first of these was that government totally mishandled
the land reform
programme.
Founded almost entirely upon racialism (in
conflict with the constitution,
and with international norms of justice),
which racialism has been confirmed
by Minister Didymus Mutasa's vituperative
attacks on white farmers as being
"dirt" and "filth", government evicted
almost all, provenly productive,
white farmers from their lands. It then
replaced them, in the main - but
with some notable exceptions - with those
grossly lacking in farming skills
and experience, and equally lacking in
resources.
It is little wonder, therefore, that agricultural output fell
cataclysmically. Government compounded this by turning a blind-eye to
widescale vandalisation of irrigation equipment which precluded the effects
of drought to being overcome by crop irrigation.
In case this was not
sufficient to destroy the agricultural sector and
reduce much of the
population to starvation, government then failed to
arrange the timeous
availability of agricultural inputs including seed,
fertilisers, chemicals
and insecticides. It has yet to explain why
fertilisers made available after
harvest time failed to enhance the harvest,
or why an availability of seed
for 650 000 tonnes of maize failed to produce
1,8 million
tonnes!
However, the starving can take heart and comfort from the
presidential
assurances that necessary steps have been taken to ensure that
inputs are
available ahead of the forthcoming season.
He states that
all required inputs have been, or are being, obtained, and
will be available
at the commencement of the season. Unfortunately, the
information flowing
from the suppliers is at variance with that "good news".
One of the
fertiliser factories is on the verge of closure as it has not
been given
foreign currency needed to source its manufacturing inputs.
Seed
suppliers say that they only have a fraction of the volumes of seed
required. Very little irrigation equipment has been imported - again due to
inadequacy of foreign currency. And, although favoured over other consumers,
farmers have received insufficient supplies of required diesel and petrol.
Inevitably, irrespective of climatic conditions, Zimbabwe will not regain
food sufficiency in the forthcoming season. (Not that, that should be a
problem, for the president suggests that if the populace cannot eat maize,
let them eat potatoes - shades of Marie Antoinette!)
Equally, there
is no substance to the recurrent attribution of Zimbabwe's
economic woes to
illegal sanctions imposed by Britain and her Western
allies.
Neither
Britain, nor any of its allies, have imposed economic sanctions
against
Zimbabwe - legal or otherwise. The only sanctions that have been
imposed
have been targetted sanctions against the presidium, ministers and
deputy
ministers, permanent secretaries and the ruling party hierarchy.
Those
sanctions comprise travel bans, freezing of their banking accounts and
other
assets and, in isolated instances, barring access to education for
children
of those subject to sanctions.
Those are the only sanctions imposed, and
they cannot be held accountable
for Zimbabwe's economic disasters.
Admittedly, some countries and
international non-governmental organisations
have reduced or discontinued
aid to Zimbabwe, but that is not because of
imposed sanctions, but to
government applying conditions to acceptance of
the aid, or refusing to have
the aid restricted to non-political purposes.
Government's unequivocal
conviction is that economic sanctions have been
imposed, despite that not
being the case.
The president also advised
the war collaborators that availability of fuel
is expected to increase
within "the next few days". He said that 10 days
ago.
But the paucity
of cars on the roads, and the immense numbers of cars
queuing at filling
stations, notwithstanding that the tanks of those filling
stations are
empty, are evidence that the advice to the war collaborators
were only
wishful thinking. Moreover, the president said that the fuel
supplies will
gradually improve over the next few weeks. Hopefully, that
will prove to be
the case, but very few have any real expectations of that
improvement. After
all, very similar forecasts of adequate availability of
fuel have been
forthcoming from the president, his vice-presidents, various
minis ters and
the Reserve Bank for many months, without the foreshadowed
fuel availability
materialising.
If government is, as stated by the president, really
working "tirelessly"
towards restoring economic developments, it needs to
redirect its efforts.
One must doubt the contention of "tireless" working by
government, for
government rarely works at all, let alone
tirelessly.
But if it is now, surprisingly, working at addressing
economic issues, then
it should work productively. That requires a
substantive restructuring of
the land reform programme to realign it with
that agreed at the Harare Donor
Conference in 1998, and again in Abuja in
2001, in order to put agriculture
back on its feet.
It requires real
reconciliation with the international community which
requires restoration
of genuine democracy or real justice, law and order.
It requires major
cuts in governmental spending, starting with a reduction
in the number of
ministries, postponement of creation of the Senate,
shrinking of the defence
forces and much else. And it requires wide-ranging
economic deregulation,
concurrently with constructively supportive policies
to complement the
Reserve Bank's monetary policies, instead of undermining
them.
It
also requires an unrestricted containment of corruption at all levels of
government and within the private sector without fear or favour. And it
requires a genuinely conducive environment for investors - both domestic and
foreign.
If all this is done, Zimbabwe has a great future and
ululations directed at
the president and his government by the masses will
be genuine, instead of
faked, as they are at present - for fear of telling
the Emperor that he is
without his clothes.
Zim Independent
By
Charehwachaguma Chirombowe
WHEN the scales fell off the Biblical Saul's eyes
to enable him to see
things anew, he was surprised to note how wrong he was
in persecuting
Christians.
At the risk of sounding blasphemous, we
have a confession emanating from a
guilt engulfing the whole
nation.
The late Chenjerai "Hitler" Hunzvi was a hero of heroes,
(gamba ramagamba,
iqhawe lamaqhawe) and should be declared a soldier of the
nation, the fist
of the nation or alternately, the defender of the poor.
Yes, Hunzvi of the
jambanja (upheaval) fame.
We never thought we
would live to agree, let alone commend the Zanu PF
politburo for anything.
We are forced to eat humble pie as we congratulate
the party for recognising
Hunzvi's heroism. For those who may still need to
be converted to
"Hunzvionism" or "Chenjism" (followers of Hunzvi) we are
glad to provide a
synopsis into the man's heroics.
Zanu PF may have recognised Hunzvi's
peripheral role during the struggle and
his rise to fame during the
controversial land reform exercise and the
parliamentary and presidential
elections of 2000 and 2002 respectively.
These to us would remain
peripheral. Hunzvi's achievements were recorded in
the late
nineties.
It is common knowledge that after demobilisation, the war
veterans were
discarded into oblivion. It was Hunzvi who retrieved them from
the dustbin
of history, dusted them off and gave them dignity.
He
alerted them to the War Victims' Compensation Fund which was accessed
only
by a privileged few. The fact that it ended up being looted was not his
problem because his job was not to manage the fund.
He vetted and
assessed war veterans for compensation. Indeed, some got
seemingly generous
assessments in excess of 100% physical disability and 90%
mental
disability.
The fact that some of these lunatics hold positions of
power and
responsibility in the party and government is not Hunzvi's
problem.
He did not elect them, neither did he appoint them to the
lofty positions.
We all know who did! But he was courageous to tell us the
physical and
mental state of our leaders.
When the independent
media exposed massive looting of the fund, President
Robert Mugabe suspended
it in March 1997.
Hunzvi and his fellow war veterans reacted angrily
to Mugabe's suspension of
the fund and led a series of demonstrations across
the country to press him
to reinstate the fund - an unprecedented move.
Hitherto disgruntled
Zimbabweans were singing the refrain: "Mugabe is
surrounded by deadwood".
Even the successful paralysing civil
servants' strike of 1996 had scapegoats
in Mariyawanda Nzuwa whom they
renamed Mariishoma!
Hunzvi was not evasive; he identified the source
of his problem and dealt
with the root cause - not wasting time and energy
on symptoms!
In April, Mugabe responded by promising to pay deserving
cases on a
case-by-case basis. Because of the way Hunzvi and his troops had
defied and
exposed him, Mugabe, who is patron of the Zimbabwe National
Liberation War
Veterans' Association, refused to meet the veterans to
discuss the issue.
This irked Hunzvi who believed that elected
leaders are only there to serve
and not dictate to the
electorate!
In May the war veterans demanded "meaningful
compensation" for their role in
the liberation struggle and started violent
street protests. They demanded
that they be treated with
respect.
Poor Florence Chitauro, then Minister of Labour and Social
Welfare, faced
their wrath . At one point she was only saved by the heroics
of her alert
and daring driver.
President Mugabe then deployed
cabinet ministers to provinces to meet
ex-combatants and discuss their
grievances. This proved to be an
unprofitable gamble as the ministers were
held hostage for hours, abused and
chased away because they had no
answers.
The war veterans were not interested in sweet nothings and
idle talk of
patriotism and sovereignty from the fat cats. They wanted food,
transport,
healthcare and educational facilities for their children just
like their
overfed leaders!
Before the regime could respond,
Hunzvi led a mob of war veterans in a march
on Mugabe's offices and
residences, denouncing him as insensitive, saying
they will fight for their
rights.
One protest in July 1997 disrupted a
Zimbabwean/African-American business
conference. The demonstrations reached
a crescendo when Hunzvi, wearing a
sixties skin hat and brandishing a
knobkerry, led drum-beating war veterans
to disrupt President Mugabe's
Heroes' Day speech.
Who will forget that day when the war veterans
booed Mugabe, forcing him to
make his shortest speech ever at a "political
rally?" Needless to say, the
nation witnessed this spectacle on ZTV. Ah
those days!
Hunzvi's "persistence and consistence" in the struggle
for justice and
equality for the war veterans, culminating in his Heroes'
Day victory,
forced President Mugabe, who was in a tight corner, to give in
and meet
leaders of the war veterans at his State House offices in Harare
where he
promised each a $50 000 (then about US$5 000) one-off gratuity, and
a
monthly pension of $2 000 (then about US$200). Needless to say, this was
unbudgeted for.
Critics are quick to point out that Hunzvi's
victory precipitated the
collapse of the economy. Such thinking is
unreasonable, for Hunzvi did not
dictate the source of the
funds.
Government could have taken the money from other sources like
reducing the
size of the cabinet and bureaucracy, privatisation or selling
off
parastatals haemorrhaging the fiscus.
In any case, Zimbabwe
has had a fair share of unplanned and unbudgeted for
expenditures. Our
involvement in the Congo imbroglio, Operation
Murambatsvina, galas and
biras, the introduction of obscure and redundant
ministries and metropolitan
governors, come to mind. Hunzvi was not
involved.
Hunzvi later
dragged Mugabe, kicking and screaming, to land reform. Again
critics will be
quick to say that worsened our economic situation. But that
is missing the
point!
Hunzvi forced Mugabe to do what the whole nation expected, in
fact demanded,
but had hitherto failed to convince him to embrace - land
reform.
The fact that Mugabe did not do it properly is not Hunzvi's
fault because he
was not at any point president. Similarly, the violence
that ensued and the
bombing of the people's paper - the Daily News - was in
all fairness a
result of the executive failing in its constitutional
mandate.
But the point ought to be made that Hunzvi rose to challenge
Mugabe and won.
Lest we forget, Hunzvi chased the affable and powerful
Retired General
Solomon Mujuru from Chikomba constituency!
He
also brought the inquiry into the fund to a stop when his colleagues
stormed
Chief Justice Godfrey Chidyausiku's courtroom.
Hunzvi did not
subscribe to the one-sided justice that the authorities
practise. Until his
death, the man would take on anyone, anywhere, anytime.
The association and
its spirit died with him.
This would sound strange but do you
remember that when Hunzvi died mourners
had to gather at Jocelyn Chiwenga's
Heritage Trust offices because they
could not perch on his government
flat?
Similarly, when his body was taken to his rural home,
dignitaries could not
crawl into his falling huts. Despite allegations of
fraud and extortion,
there was no evidence to suggest that Hunzvi lived an
opulent life. His was
an ordinary life like many of us. We thus celebrate
Hunzvi as a hero.
Unlike the pitiful lot of Zimbabweans, Hunzvi
followed his conviction. He
mobilised the common people around "their
burning issues" and not the petty
bourgeoisie.
He definitely
would not have allowed Operation Murambatsvina.
* Charehwachaguma
Chirombowe is a Harare-based social commentator.
Zim Independent
By
Bruce Gemmills
THE collapse of Zimbabwe demonstrates conclusively that the
primary cause of
the economic collapse was the land reform programme;
drought played only a
minor roll.
Virtually all Zimbabweans have had
their lives or livelihoods adversely
affected by this collapse, many
grievously so.
This political cause has had an economic domino effect
and the collapse
continues, ever downward at an exponential
rate.
Even if Reserve Bank of Zimbabwe governor, Gideon Gono, brings
to bear all
the financial wizardry he is capable of, it will be to no avail.
Metaphorically he is sticking his finger in the dam wall.
The
requisite fundamentals for an economic recovery are not in place and the
most fundamental of all the fundamentals is the comprehensive revival of
commercial agriculture.
Today, commercial agriculture should not
be regarded as a relic of
colonialism or a construct of white privilege. It
is a vital component of
the economy, it always was and it always will
be.
I don't dispute it was developed during minority white rule,
mainly for the
benefit of whites, so too was Lake Kariba.
When
the government decided to destroy commercial agriculture, it was a
politically-inspired act of retribution. I have little doubt, but no proof,
the 2000 referendum was rejected by the farmers and their employees. The
government's fury was white-hot and out of control. This fury is responsible
for turning Zimbabwe into an economic and agricultural
scrapyard.
The government cobbled together the A1 and A2 schemes
based on the
presumption that commercial farming was only a combination of
instinct,
commonsense, and government loans.
The imposition of
this top down formula was in character with the
government's belief that it
knows best. Remember when the government tried
to impose Village Development
Committees and Ward Development Committees
into the communal lands - they
failed.
The imposition of the A1 and A2 resettlement schemes is a
continuation of
the same philosophy and mind-set. The resettlement scheme is
politically-driven, it ignores all business and agricultural essentials, it
is already a proven failure.
The government will never admit it
has made an egregious blunder, that is
the nature of all dictatorships. The
demise of commercial agriculture has
had a debilitating effect on communal
agriculture. Supply and service
industries, agricultural research, marketing
structures, banking and
provincial towns depended to a large extent on the
existence of large-scale
commercial agriculture. Communal agriculture shared
and benefited from these
utilities.
Many post-colonial African
governments also booted out their commercial
farmers. Today many of those
same governments are inviting commercial
farmers to return.
Why?
It is because small-scale and peasant farming has not measured
up to feeding
the ever-increasing urban populations. There is a lesson to be
learnt here.
Modern commercial farming is a multi-faceted business,
to survive it must
observe and conform to the universal rules of
business.
It must also work with nature, spreading risk through a
range of enterprises
and rotational cropping. Scale of operation is also
vital in order to
justify investment in complex, expensive plant and
machinery.
Scale is also a factor when competing in northern
hemisphere markets. Modern
commercial farming is a synchronised blend of
many factors, many of these
factors being inter-dependent. It is
pre-eminently business-based rather
than resource-based.
To be a
successful commercial farmer does not require academic brilliance.
It does
require technical and managerial competence, an empathy with things
that
live and grow, a feeling of responsibility towards the environment, a
preparedness to return profits to the business, for an extended period until
development and financial security have been achieved.
If you are
looking for a fast buck or an easy life, don't go farming.
Everything to do
with commercial agriculture involves a long-term
commitment, so security of
title is paramount.
The white minority government kept black people
away from land ownership and
large-scale commercial agriculture mainly for
political reasons. It did not
want to have to reason with, and recognise a
visual and coherent body of
black opinion it may not be able to control. The
same grotesque logic
prevails in the present government. Only those it can
control by some means
or another will it allow to occupy land.
We
have become a nation of beggars, relying on other countries to grow the
food
we once provided for ourselves. Under the present A1 and A2 format, it
is
inevitable that agricultural output will continue to decline. It cannot
develop the capacity or capability to meet the nation's needs.
In
some respects, the land reform programme is an attenuated copycat version
of
Chairman Mao's Great Leap Forward.
President Mugabe has always been
attracted to Marxist theory. He seems to
regard Zimbabwe as his political
toy box.
Today, China has transformed itself into an economic
powerhouse.Maybe after
Zimbabwe has recovered its political balance, it too
can become the first
tiger economy in Africa. Only by progressing to an
industry-based economy
can the needs and expectations of the Zimbabwe people
be met.
* Bruce Gemmills is a farmer and civic activist
Zim Independent
By Tendai
Biti
EVER since Gideon Gono took office as Reserve Bank governor, the public
has
been told what a good job he has been doing - not just by the state
media
and some sycophantic acolytes, but by the man himself.
The
reality is completely otherwise. Gono's inconsistent, ill-conceived
policies
have been targeted at addressing symptoms, not the terminal
economic
diseases that Zanu PF has inflicted on Zimbabwe.
In failing to
address the fundamentals, he has actually just made conditions
in the
economy much worse.
These are not just the views of an opposition
party analysing weaknesses in
the government's position. The IMF, to which
Gono has recently played such
court, has in the reports released yesterday
slated the role of the Reserve
Bank in Zimbabwe's continued precipitous
decline.
The IMF predicts that real GDP will contract by 7% per annum
and that
inflation will reach 400% by the end of the year. So much for the
Gono
"turnaround" and for the 80% inflation rate he promised by December -
inflation being the "number one enemy" that he claims to be
fighting.
Why is the economy collapsing for the seventh consecutive
year in a row only
in Zimbabwe and not the rest of Africa and inflation
accelerating?
The main culprits, according to the IMF, are the steep
decline in foreign
currency earnings and the lack of consistency in fiscal
and monetary policy.
The failure to achieve an improvement in foreign
currency earnings is
attributed by the IMF to the RBZ maintaining an
overvalued exchange rate
regime which, even after recent changes, "remains
highly restricted".
Accelerating inflation is fundamentally due to
irresponsible increases in
the money supply, which the IMF says were "mainly
due to the sharp increases
in RBZ's quasi-fiscal activities during 2004 and
first half of 2005".
Gono has appropriated to himself not just the
whole spectrum of economic
policy-making, but also its implementation - most
notably in usurping the
fiscal functions of the Ministry of
Finance.
His hubris might have been justified if he had had the
ability to formulate
and execute a comprehensive stabilisation and recovery
plan. Instead, the
effects of the piecemeal policies which he has
introduced, then changed,
then reversed (as the IMF documents in detail in
its Article IV report),
have led to a situation where the country's economic
prospects could hardly
be more dismal.
In the face of the
extremely tough criticism of the governor that is
contained in the IMF
report, Gono seems like an errant schoolboy in his
anxiousness to win their
approval. As a result, he has paid US$120 million
of IMF arrears (plus it
was reported this week, another US$15 million)
thereby depriving desperate
Zimbabweans of fuel, food, medicines and other
essentials.
Furthermore, the foreign currency was appropriated
from the accounts of
exporters, further undermining the willingness of the
private sector to
attempt to export.
This statement is made
despite the suspiciously detailed defence about the
origin of the IMF
arrears repayment funds which Gono attempted to publicise
through the
ever-willing Herald.
At the best of times, the fungibility of money
makes such defences
meaningless. At the worst of times, which is where
Zimbabwe is at present,
such approaches makes clear the willingness of the
authorities to engage in
blatant lies in order to defend the
indefensible.
Gono also tried to curry favour with the fund by
introducing a dramatic
tightening of interest rates and a sharp depreciation
of the Zimbabwe dollar
on the auction just before the IMF mission visited in
August.
But without other elements of a coherent anti-inflationary
package in place,
in particular with the enormous fiscal and quasi-fiscal
deficits fuelling
dramatic money supply growth, these policies can only be
self-defeating.
Higher inflation, lower export revenues, more shortages,
more poverty and
despair are what are in store for Zimbabwe as long as Gono
remains at the
helm.
Gono lacks both the capacity and the
authority to formulate and implement
the comprehensive macroeconomic and
structural reforms that are needed to
lay the basis for sustained recovery
of the Zimbabwe economy. Before he can
do more damage, pushing Zimbabwe's
hopes of economic recovery into an ever
more remote future, Gono should have
the grace to resign.
* Tendai Biti is MDC secretary for economic
affairs.
Zim Independent
Shakeman
Mugari
THOSE who have watched Reserve Bank of Zimbabwe (RBZ) governor Gideon
Gono
splashing trillions of dollars during his 23-month reign could be
forgiven
for doubting the common saying: "money does not grow on
trees".
He has been doling out money like it does grow on trees after
all. Over a
period of 23 months, Gono has given out more than $23 trillion.
This means
that since his appointment in December 2003, he has handed out an
average of
$1 trillion every month, which translates to a massive $33
billion a day.
In December Gono will be two years old in the
governor's office but with
nothing to show for it, although he has spent a
fortune in his efforts to
revive the economy.
The results of this
extravaganza have been disastrous because it is based on
the warped
assumption that major sectors of the economy are crumbling
because they lack
funding, analysts say.
However, the continued collapse of the
economy, company closures and
galloping inflation show that money dished out
has not translated into real
growth or at least stopped the hemorrhage in
the economy.
The accelerated collapse of the economy, analysts say,
is evidence that what
Zimbabwe needs is not a reckless injection of local
currency, but an urgent
correction of economic and political
fundamentals.
They say there is need to create a stable and
predictable environment under
which business can operate.
A
predictable environment, they say, means a stable local currency, clear
foreign currency laws and zero government interference in the market. It
also means policy consistence in government.
The analysts say
unless the central bank and government start singing from
the same hymn book
on key policies, the economy will remain stuck in the mud
no matter how much
money the governor doles out.
They note that Gono can throw money at
big problems but they will not go
away unless the politics of this country
are corrected.
Zimbabwe has one of the highest political risk ratings
because it has
continued to trample on property rights and wanton disregard
of the rule of
law.
Companies are arm-twisted to charge
uneconomical prices for their products
as part of government's political
gimmick to "cushion" the poor.
The political crisis and government's
skewed economic policies therefore
make Gono's generous spending a waste of
national resources that has since
started to boomerang with rising inflation
due to increased money supply. It
has sunk the economy that he claims to be
turning around.
Analysts say that Gono blundered in the first place
by believing that money
fixes every problem. Almost all of the previous
monetary reviews, save for
his inaugural one on December 18, 2003, have been
accompanied with a new
money doling facility.
He kicked off the
year 2004 on a high note giving $400 billion in liquidity
support to
troubled banks, most of which still collapsed despite the capital
injection.
The figure grew more than $2 trillion with interest
and was never recovered,
leaving a yawning gap in the treasury and the
national savings.
Only two of the seven banks - Metropolitan and
Intermarket - that received
liquidity support survived.
Trust,
Royal and Barbican, some of the biggest beneficiaries of the
facility,
collapsed. They were later forced into the Zimbabwe Allied Banking
Group
(ZABG) whose future remains uncertain eight months after
formation.
Time Bank is yet to come out of the woods while Century,
which later merged
with CFX, is still limping.
Gono also gave
more than $2 trillion under the Productive Sector Facility
(PSF) at heavily
subsidised rates of 30%.
The money, as the governor claimed, was
meant to boost production but the
situation in the agricultural and
manufacturing sectors has worsened with
more companies closing shop and
production plunging.
Despite receiving more than 36% of the funds
under the facility, industry
has continued to collapse with recent reports
from the Zimbabwe National
Chamber of Commerce (ZNCC) saying capacity
utilisation has slumped to 25%.
This is probably the lowest capacity
level of utilisation in Zimbabwe's
industry since Independence in 1980. The
lowest level hitherto was two years
ago when it reached 35%.
The
agricultural sector, which has so far received more that $4 trillion
over
the past two years, has continued down the cliff.
This year alone
Gono has given out more than $3 trillion to the agricultural
sector but
forecasts already show that Zimbabwe could have a serious food
shortage next
year.
According to a document compiled by the research department of
the central
bank itself, the country is going to produce about 750 000
tonnes of maize
next year against a national requirement of 1,8 million
tonnes.
The document also says the country will produce less than 150
000 tonnes of
wheat this season, far less than the national requirement of
400 000 tonnes.
These shortages are forecast despite the fact that
Gono has so far injected
more than $4 trillion into the
sector.
Experts say no amount of money can resuscitate the
aricultural sector unless
Zimbabwe regains its international market,
restores property rights, stops
further land invasions and restores order in
the sector.
"These are simple fundamentals that do not demand
trillions," said economic
consultant Daniel Ndlela.
"It's the
fundamentals that are wrong. By throwing money at every problem
they are
stoking inflation, pillaging the value of the dollar, that is
dangerous,"
Ndlela said.
Perhaps the clearest example that money does not matter
when fundamentals
are crooked, are the parastatals whose service delivery
has not improved
despite receiving billions of dollars from the central
bank.
Parastatals like the Zimbabwe Broadcasting Holdings and the
National
Railways of Zimbabwe have gobbled billions of dollars under the
fund but
their fortunes have continued to dip. If anything, service at the
NRZ has
worsened on the back of a bloated wage bill and
incompetence.
Loans to the Zimbabwe Electricity Supply Authority
(Zesa), the Zimbabwe Iron
and Steel Company (Zisco), Agriculture and Rural
Development Authority
(Arda) and the Grain Marketing Board (GMB) have also
not changed anything.
It is unclear whether these parastatals have repaid
their loans.
Refusing to learn from past mistakes, Gono then came up
with another $10
trillion fund, which he dubbed Parastatals and Local
Authorities
Re-orientation Programme (Plarp).
Under Plarp, Gono
gave out trillions to parastatals that had already failed
to service their
loans under the PSF. Zesa Holdings and Zisco are reported
to be in line for
a massive loan of $1 trillion each.
Ailing Air Zimbabwe, the NRZ and
Arda will also receive trillion- dollar
loans.
Local authorities are
also reported to have accessed funds but the service
is still atrocious.
Service delivery in Harare, for example, is still
shambolic.
Ndlela said by pumping out money, Gono has fuelled
inflation, helped
undermine the value of the dollar and reduced the value of
labour.
"What he has done is to pillage the value of the labour that
one puts into
the eight hours at work. In real terms, Zimbabwean workers now
earn almost a
third of what they earned in January," said
Ndlela.
Economist John Robertson said by throwing money at every
problem Gono was
only dealing with symptoms of a broader crisis that needed
a drastic policy
shift to solve.
"Lack of money is only a
symptom. He has to deal with the problems that have
wrecked the economy in
the first place," Robertson said.
"Companies in this country are
suffering because there is no foreign
currency, fuel and power.
"No
matter how much Zimbabwean dollars you give them, this problem will
never go
away. It might postpone the problem but it will still be there."
He
said Gono's profligacy has accelerated inflation. There are fears in the
market that inflation could increase to 500% by
year-end.
Year-on-year inflation is around 265% and judging by the
trend in the
economy, it is unlikely to end the year below 80% as
predicted.
Zim Independent
Editor's Memo
Vincent
Kahiya
AS we wait for central bank governor Gideon Gono to announce his 2006
monetary policy statement this month, the IMF this week issued a damning
report on Zimbabwe, painting a bleak future for a country that has remained
mired in an intractable crisis for over five years.
Gono, a proponent
of a now apparently delusional process of recovery, has,
despite all his
feverish activity in trying to bring change, transparently
failed and there
is no hope for his next monetary policy succeeding. The
nation has become
tired of his blood and thunder speeches, veiled threats to
industry and
commerce and war cries proclaiming "failure is not an option".
His
number one enemy, inflation, has not been defeated but is rapidly
gaining
ground. The country is in freefall as shown by all key economic
indicators:
inflation which was 130% in January is now 264,8% and GDP should
fall by
7%.
Gono in January told us inflation figures of 50-80% were
achievable by
year-end. That is not going to happen in the next 12 weeks
before New Year.
The IMF has said in its report that inflation could rise to
over 400% by the
end of the year. There is no greater illustration of
failure, whatever the
excuse. Failure is indeed no longer an option. It has
become a stark reality
and it is time for the governor to raise the white
flag.
In his next policy, Gono should not pretend that things can
work out in the
current political environment. He should not pretend that
the economy is
turning the corner because of the country's reduction of
arrears to the IMF.
Evidence abounds that life is much tougher than it
was in January when he
presented his 2005 projection which promised us a
better standard of living.
There is no need for intricate scientific
formulae to prove this. In
January, a loaf of bread cost $3 500. Today,
workers, especially civil
servants whose salaries have not moved since then,
need to fork out $26 000
for the same loaf. Milk was $3 720 and now costs up
to $20 000. Commuters
were paying $3 000 to get to work; they now need $15
000 for a single trip.
Those in Norton need as much as $50 000 for a
single trip. That is an
economy on the recovery path? Only for the
completely delusional.
The IMF is clear on what needs to be done. It
has said Zimbabwe needs a
broad package of economic policies and reforms to
lower inflation and boost
growth.
"Without a bold change in
policy direction, the economic outlook will remain
bleak, with particularly
detrimental effects on the poorest segments of the
population," the IMF
said.
We do not expect to see a bold policy decision that will have a
bearing on
this economy as long as the government pursues knee-jerk policies
which only
provoke international condemnation. Since the passage of the
Constitutional
Amendment Number 17, state agents, diplomats and politicians
have reportedly
led fresh invasions of farms. Gono has described the
invaders as "criminals"
but no one has been arrested. These criminals act
with impunity and are
directed at the highest levels.
With less
than a month to go before the onset of the rainy season, Gono's
"command
agriculture" scheme as set out in January, is way behind schedule.
All
projections seem to suggest that preparations for the 2005-2006 crop are
a
shambles. His wish to have full uptake in the A2 sector and full
utilisation
of machinery has remained an illusion. There was even more chaos
on the land
last week when the courts ruled that all offer letters issued to
resettled
farmers were null and void following the constitutional amendment.
In
January Gono announced plans to boost exports to surpass last year's
earnings figures. We recall the promises by the central bank to come up with
a balanced approach to "restore exporter viability, at the same time
minimising inflationary impulses and import costs". Successes on this front
are minuscule as industry is relying on the parallel market to finance
imports of inputs and machinery. It is most unlikely that the foreign
currency receipts will reach the projected US$3,1 billion
mark.
The governor's wish to contain the budget deficit has remained
unfulfilled
as government's appetite to spend has remained high. Elsewhere
in this
edition we carry the story of government's spendfest on motor
vehicles to be
paid for in forex when the country does not have
fuel.
At the end of his policy speech in January, Gono reminded us of
the pains of
2003 and 2004. These included "fuel queues that had become a
permanent
feature in our cities", electricity blackouts, delayed departures
due to
unavailability of Jet A1 fuel, shortages of basic commodities and the
rampant parallel market.
He told us: "Surely as a committed, a
dedicated and united people, we cannot
afford to, nor allow ourselves to go
back to this dark and sad era of our
time, at a time when history will
record that the nation's morale sank to
its lowest point ever recorded, a
period when all hope seemed to have
evaporated in thin
air."
Well, we're back there now.
The gullible cheered his
every word and endlessly repeated the refrain about
turning the corner. But
are we not where we were in 2004 if not worse? It is
one thing not to know
what to do and fail but quite another to know what to
do and not be allowed
to do it. Gono undoubtedly knows what has to be done
but the ignoramuses
around the president have stuck to their poisonous
designs.
Mr
Governor, no more promises. Stop misleading the public on the true state
of
the economy. Either fix it or go.
Zim Independent
By
Denford Magora
PRESIDENT Mugabe's retirement in 2008, as announced by him
twice now, is
actually a non-event.
It is a non-event because he has
also said that he will not be retiring from
politics "until the Almighty
says enough is enough".
This means, even after he stops being
president, Mugabe will remain "active
in politics", an issue which calls for
debate. It is important because Zanu
PF is likely to continue running the
country even after President Mugabe
leaves the presidency.
If,
after he retires, Mugabe remains an active politician as he is
threatening,
then the dangers of this move should be fully explored now.
If Mugabe
remains active in politics, it means he will remain active in Zanu
PF. He
will be active in shaping party policy as he seeks to secure his
legacy from
outside of Munhumutapa Building.
He will, as a result, still retain
the power to make or break careers in
Zanu PF and, by extension, also in
government.
Within the party Mugabe remains a towering figure, with
massive, almost
(almost, I said) unanimous support within the ranks of Zanu
PF members.
Personally, he can count on the allegiance of the armed
forces and virtually
all of the power factions within the ruling party. His
influence over these
organs and factions of the state is unlikely to be
diminished by leaving
office.
It means no one will get into
office if an ex-president Mugabe does not want
them to. No one would even
dream of becoming president of the party or the
country without his
blessing.
Knowing the man as we do, we can also be certain that he
will continue to
influence government policy from beyond "retirement", as
long as Zanu PF
continues in power.
Any minister or bureaucrat
who pushes through policies a "former President
Mugabe" disapproves of will
certainly lose their job.
Ministers will be made to pay for any
transgressions against the former
president at the Zanu PF Congress, where
they could easily be voted out into
the political
wilderness.
More worrying though, is the risk of an alternative
government forming in
the shadows. With the former president still active in
politics, he would
most likely attract a motley crew of hangers-on. These
people in his
immediate circle will make it known to ministers, civil
servants and the
"leadership" of the country at that time what the old man
is happy about or
not, what he supports and what he opposes, who he likes
and who he does not,
what he wants and what he wants done.
The
consequences of defying the former president will be known to all. If
need
be, examples will be made out of some hapless souls just to drive the
point
home.
In essence, therefore, the risk is that the president will,
even in
retirement, remain de facto president of both the party and the
state. But
only if he allows it.
The determining factor will be
how the president himself views his
"retirement". All indications at the
moment are that he would retire from
running the country only in name. He
will move to the background, from
whence he would direct the affairs of the
party and the state.
Unfortunately, if the president decides to
remain active in politics "until
the Almighty says enough is enough", it
means he becomes the puppet master
behind the curtain of power and our
problems with the rest of the world will
persist.
I have said it
before and I think it bears repeating: Zimbabweans have shown
that they do
not have the stomach for a fight, no matter what is done to
them. The
shortages, inflation, breakdown of civil services and amenities
and
everything negative we have seen so far would have driven any other
people
to embark on a war of attrition with their rulers.
Any other people
would have brought the nation to a halt and directed all
their efforts at
ridding themselves of those who are putting them through
hell. But in
Zimbabwe, people cry that their hands are tied, they do not
want to die "for
nothing", they are powerless etc.
And this means that our rulers now
know that they can get away with
anything.
Zimbabweans, even if
they should attempt to protest, will be beaten up just
once and immediately
retreat to their homes, from where they will write
eloquently insulting
letters to the editor. That will not change much. So,
another Zanu PF
president knows exactly what he has to do to retain power.
Mugabe
will still be there to give pointers on how this should be done,
under the
guise of "remaining active in politics". The army will still be
there for
Zanu PF, as will the police and all the other organs of state that
have been
loaded with Zanu PF loyalists.
By hook or by crook, therefore, Zanu
PF will remain the party in power even
after the president has
"retired".
By hook or by crook, they will hang on to that power,
doing what they have
to do to make sure that the people remain as timid,
cowardly and miserable
as ever.
We should also forget about the
rest of the world coming to our rescue. The
West has played all its cards.
It has nothing left to offer the people of
Zimbabwe. The only card they have
left is the imposition of comprehensive
sanctions against a Zimbabwe no
longer ruled by Mugabe but still ruled by
Zanu PF.
But widening
the scope of the sanctions will certainly not bring any joy.
Those in
power will use the little resources still available to the state to
widen
the scope of their patronage, ensuring that the army, the police and
other
organs of the state remain faithful to the Zanu PF administration at
the
time.
Because Zimbabweans are cowardly, they will allow this to
happen and simply
try to outdo each other in enjoying the patronage. Those
with no access to
the patronage will continue suffering, pleading tied
hands, repression and
intimidation.
For this reason, I believe
that the president, if he is really serious about
retiring, should be seen
to be doing so. His involvement in politics after
retirement should only be
at the invitation of the new government - whether
it is Zanu PF or any other
party.
He should publicly make it known that he will not seek to
influence the
running of the country after he has retired. He should also
make it known
that, after he retires, no one will be entitled to speak for
him, whether in
private or in public.
He should inform the nation
that, when he has something to say, he will say
it himself and anyone asking
for things to be done "for the old man" will be
talking rubbish and should
be ignored by the party and the state.
He should thank the army and
the war veterans and the police for their
support of him and tell them that
their loyalty after he retires will lie
with the state and its new
rulers.
Better still, the president could (and, in my opinion,
should) make it known
what he means by remaining active in politics. What
limits will he set for
himself, knowing full well that a new Zanu PF
president would not dare defy
his will?
What would he be prepared
to do and where would he draw the line? Will he
expect the country to be run
as though he is still at the helm, or will he
allow a new Zanu PF and state
president to be their own man or woman, to
make decisions without fear of
repercussions except from the people, in whom
true power
lies?
What of it, Comrade President? Will you publicly disown any
future
pretenders and charlatans who would attempt to use your name to get
things
done in certain ways in government?
Will you, after you
retire, allow your name to be used to advance personal
agendas and to
promote factionalism in the state and in the party?
Or will you allow the
new leaders a free hand.
* Denford Magora is a Harare-based marketing
executive.
Zim Independent
Godfrey
Marawanyika
IN a development that is likely to have a major bearing on the
health
delivery system in Chipinge, the only remaining doctor in the area
has been
forced to abandon her patients after being chased off her
farm.
Speaking at a function to mark German national day on Monday, Karin
Blumberger-Sauertieg, the German ambassador to Zimbabwe, announced that the
only doctor in the eastern town had left.
Blumberger-Sauertieg
expressed concern at the deteriorating economic
situation in the
country.
"Last week the only doctor in Chipinge, German national Dr
Petra Clowes, was
chased away from her home and her patients,"
Blumberger-Sauertieg told
guests.
Although she did not tell her
audience who had evicted Petra from Chipinge,
it has since emerged that
Clowes was the wife of a farm manager on one of
the estates.
"As
long-standing friends of Zimbabwe we cannot hide our great concerns
about
the present situation and the difficulties Zimbabwe is facing and we
would
like to express our hopes that all men and women in Zimbabwe will
again be
able to enjoy the welfare and the wellbeing they deserve and the
wisdom and
dedication of their leaders in order to achieve this aim," she
said.
She reminded her audience that Lutheran Protestants were
celebrating the
30th anniversary of the foundation of the Lutheran Church in
Harare with its
motto: "Be tolerant with one another."
"What a
wonderful guideline for all Zimbabweans - whatever their political
orientation, whatever the colour of their skin - in the spirit of dialogue
and mutual respect," the ambassador said.
She commented on the
presence of German products in the country but lamented
their gross
underutilisation, especially vehicles. She said: "The label
'Made in
Germany' stands for experience on the world's markets and top
quality
products. I am happy to see so many fast German cars on Zimbabwean
streets -
unfortunately there is not enough fuel to keep them running,"
Blumberger-Sauertieg said.
"Since Independence the German
taxpayer contributed more than 1 billion
euros for bilateral and
multilateral programmes. Until recently my country
was the third largest
trading partner."
She noted that today, the people from her country
wrote one of the "most
beautiful chapters" in history after they defeated a
vile dictatorship and
won their fight for freedom.
She said
German reunification in 1989 marked the end of the cold war, which
changed
Europe as Germany turned from a frontline state to a position in the
heart
of Europe.
"Without our neighbours and friends we would never have
achieved it. West
Germany brought us a positive contribution to unification
- its close
integration in the western community of values, solid democratic
institutions and economic power while East Germany brought with it an
overwhelming desire for transformation and change," she
said.
"Today, not all the problems are solved, unemployment is still
high, but our
country has a good name in the world: it stands for hard work
and
organisational talent; for a great cultural nation and its
masterworks."
Zim Independent
Ray Matikinye
MORE farmers
were this week ordered off their properties in the Glen Forest
area north of
Harare as the fresh wave of farm invasions intensifies.
In several cases
the farm invaders are said to have claimed to be members of
the Land Audit
Committee.
Groups of people appeared at farms in the Glen Forest,
Welston area, north
of Harare, demanding that the owners hand over keys to
various dwellings and
leave immediately.
According to a
Commercial Farmers Union (CFU) update, affected farmers
contacted
Mashonaland Central governor Ray Kaukonde, who initially gave
instructions
through Arex that the invasions should cease forthwith.
The invasions
stopped for a short while, but resumed later, prompting
affected farmers to
make further appeals to the governor.
The CFU said two farmers had
been ordered to leave their properties by the
end of October in the Bindura
district.
Only 15 of the original 40 farmers in the Headlands, Rusape
and Nyazura
areas of Makoni district remain after a cabinet minister in the
area ordered
that the rest must cease operations and vacate their
farms.
Another farmer, a Mr Barnard, was ordered to leave his
property by today.
Five farmers in the Chipinge district have been forced
off their properties.
They were given only a few hours in which to pack
up personal possessions,
and they were not allowed to remove any of their
farm equipment. One farmer
was severely beaten and another
assaulted.
The uncertainty among farmers following notices to vacate
their properties
has affected land preparations.
Currently, there
has been very little land preparation for the coming summer
due to the
severe fuel shortage. Fertilisers and chemicals are also in short
supply
although there are promises that the situation will improve.
The
invasions have erupted hard on the heels of a landmark judgement
delivered
recently by Justice Patel in the High Court in favour of Kenmast
Farming
(Pvt) Ltd nullifying offer letters issued to individuals for
specific land
or property before the confirmation of their acquisition by
the
Administrative Court or prior to the September 14 Constitutional
Amendment.
Zim Independent
THE Media and Information
Commission (MIC) has been hit by serious
differences on its board over the
closure of newspapers, resulting in the
resignation of commissioner Jonathan
Maphenduka, the Zimbabwe Independent
can reveal.
Maphenduka, a career
journalist and former Chronicle staffer, was nominated
to the MIC rather
controversially as a representative of journalists.
His resignation
letter, dated August 18 and sent to Information permanent
secretary George
Charamba, said the decision to close down newspapers "does
not add strength
to Zimbabwe's case for democracy".
He described the MIC's actions as
"ill-advised and counter-productive".
The Access to Information and
Protection of Privacy Act (Aippa), under which
the MIC operates, was being
applied in a "flawed manner", he said.
Maphenduka said Zimbabwe was
under siege from the "rabid hostility" of a
"group of allies which are
determined to bring this country to its knees".
But this didn't justify
denying newspapers the right to publish, he said.
MIC executive
chairman Tafataona Mahoso yesterday insisted that Maphenduka
was still a
board member of the commission.
"We have not been told (by the
Ministry of Information) that he has
resigned," said Mahoso. "In any case,
it (resignation) is not automatic. He
has to serve a notice period and the
parent ministry must accept his
resignation.
"As far as I am
concerned he is still a member of the board," said Mahoso.
Contacted
for comment yesterday, Maphenduka said: "My resignation letter of
10 August
stands but I have not received a response from the Ministry of
Information."
He said denying newspapers the right to publish was
wrong.
"Without suggesting in any way Zimbabwe should meekly throw in
the towel,"
said Maphenduka in the letter, "I do not however subscribe to
the idea that
denying newspapers the right to publish, amid this hostile
environment, is
the best way of counteracting the rabid hostility besetting
our beloved and
great country."
He added: "It must be obvious to
all that the decisions of the commission
regarding these newspapers at this
most opportune time are shorn of
discretion and are therefore ill-advised
and counterproductive."
The MIC has cancelled operating licences for
the Tribune and the Weekly
Times and denied Associated Newspapers of
Zimbabwe licences to publish.
Maphenduka said he supported the idea
of regulating the media through Aippa
as long as the system was not flawed.
"Is the letter and spirit of Aippa
such that it leaves the commission no
option to be judicious?" said
Maphenduka. "I cannot therefore with a clear
conscience continue to serve as
a member of the commission, and hereby
tender my resignation." - Staff
Writer.
Zim Independent
THE
Media Institute of Southern Africa (Misa) has challenged government, the
Mirror group and deposed founding editor Dr Ibbo Mandaza to come clean on
the involvement of the Central Intelligence Organisation in the media
house.
In a statement, Misa-Zimbabwe chairman Thomas Deve said they had
been
following with great concern and anxiety the unfolding saga at the
Daily
Mirror and Sunday Mirror on the alleged covert operations by the CIO
to
control the "privately-run" Mirror Newspapers Group.
"The
government, group chairman Jonathan Kadzura and Dr Mandaza owe the
nation,
the Mirror group's workers and journalists, and the entire media
community
an explanation as millions of taxpayers' money could have been
channelled
into the Mirror group through the alleged involvement of the
CIO," Deve
said.
"It is also our strong view that it is Dr Mandaza's
professional and ethical
obligation and responsibility to come out in the
open and set the record
straight, more so in the wake of his suspension from
the publishing
company."
He said that in the spirit of fairness,
transparency and accountability, it
was indeed a great betrayal of the
Mirror group's workers, taxpayers and the
nation at large to continue to be
kept in the dark as this only fuels
speculation and suspicions that someone
has something to hide.
"Our concern has been heightened by the lack
of verifiable information
pertaining to events at the beleaguered newspaper
group which has seen the
suspension of the editor-in-chief Dr Ibbo Mandaza,
and his deputy Alexander
Kanengoni, after the Zimbabwe Independent broke the
story of the alleged CIO
involvement," Deve said.
"Given the
sensitive nature of the allegations and inherent ramifications
for media
freedom and editorial independence, one would have expected a
swift response
from Dr Mandaza, the Media and Information Commission and the
responsible
ministry, to allay any fears and suspicions."
He said as the founding
group CEO and editor-in-chief, Mandaza's seeming
dithering and prevarication
on the true nature of events at the newspaper
group had only served to add
to the mystery.
"Suffice it to say the alleged involvement of the CIO
vitiates the 1991
Windhoek Declaration ratified by Zimbabwe on the need to
promote free,
independent and pluralistic media," he
said.
"Misa-Zimbabwe reiterates that the government and the security
arms of the
state have no business taking over privately-owned newspapers as
they play a
vital role in fostering diverse views in the service of
democracy and
development," Deve said. - Staff Writer.
Zim Independent
Dumisani
Muleya
PROMINENT academic and publisher Ibbo Mandaza was recently taken to
task by
state security agents for allegedly writing the damning United
Nations (UN)
report on Operation Murambatsvina which exposed the government
to
international criticism.
This comes against a background of
disclosures this week that the Central
Intelligence Organisation (CIO) was
behind the catastrophic demolition
blitz.
An article written by
government's overseas spin-doctor, New African
magazine editor Baffour
Ankomah, carried by the state-owned Herald, said the
CIO designed the widely
condemned operation which the UN said displaced at
least 700 000 people and
affected 2,4 million.
Ankomah said the CIO designed Murambatsvina to
pre-empt a foreign-induced
uprising against President Robert Mugabe's regime
after initial moves to
incite a revolt in reaction to accusations of
electoral fraud in the
aftermath of the disputed March general election
failed.
Sources said Ankomah, who visited Harare in an all-government
paid trip in
August, was briefed about the CIO plot by a senior official in
the
Information ministry. The CIO was angry with the official, it was
said.
Opposition MPs have called for a commission of inquiry to
ascertain the
architects of the operation and have them prosecuted.
Independent MP
Jonathan Moyo said yesterday the CIO had through
Murambatsvina - which he
described as a "military operation" - revived a
"reign of terror reminiscent
of the Gukurahundi days".
Sources
said Mandaza was quizzed by telephone by CIO director-general
Happyton
Bonyongwe over allegations that he wrote UN secretary-general Kofi
Annan's
envoy Anna Kajumulo Tibaijuka's report on the operation.
Sources said
Bonyongwe called Mandaza on August 2 to grill him over the
report which
riled Mugabe and ministers. Mandaza, difficult to interview
since the
Mediagate scandal, yesterday confirmed the issue.
"The issue was
highlighted at the highest level and I was questioned by the
state security
agents by telephone during the Heroes Day holidays," he said.
"I was
asked whether or not I had met Tibaijuka while she was here. I said I
did
not meet her nor was I able to speak to her even though it is true that
we
tried to contact each other because she was my student at the University
of
Dar es Salaam.
"I heard the allegation that I had written the report
or assisted in its
writing but that's entirely untrue and baseless. What is
true is that I met
some members of her team because they wanted to see me
after reading my
articles and books," he said.
Mandaza said he
only helped the Tibaijuka team to contextualise issues.
"I told the team
that it was not true the operation was only targeted at
opposition
supporters because Zanu PF members were also affected," he said.
"But
the allegation persisted and there seems to be a connection between
that
claim and attempts to remove me from the Mirror newspapers."
Zim Independent
Ray
Matikinye
ZANU PF's printing flagship, Jongwe Printers, is reeling under
financial
stress following the abuse of a $17,5 billion loan facility from
the Reserve
Bank of Zimbabwe (RBZ) for the purchase of a printing
press.
Former managing director, Tawanda Murerekwa, was dismissed for
bungling the
purchase deal which saw the company acquire a printing press
limited to
printing school exercise books using local paper.
The
press can only print newspapers using expensive imported
paper.
Jongwe Printing & Publishing (Pvt) Ltd, a company run by
the ruling party,
received the first loan installment of $12,5 billion under
the Public Sector
Fund (PSF) meant for the purchase of a printing press.
Three months later in
April it received an additional $5 billion for the
same purpose.
Sources say Murerekwa, who ran the company
single-handedly before he hired
three other people to assist him, made
several trips abroad to source a
printing press. One of the financial
managers, Febbie Shonhiwa, also
resigned.
On other trips he would
take along disgraced Zanu PF Manicaland provincial
chairman, Mike Madiro, to
look for a printing press.
Madiro was part of the Jongwe Printers
board.
The trips resulted in the purchase of a press unsuitable for
producing
newspapers.
Sources say Jongwe Printers then went into
producing exercise books under
the Genius brand name. The venture collapsed
despite an extensive
advertising campaign on both radio and television for
the schoolbooks.
A large stock of unsold exercise books remains piled
in a warehouse at the
printer's premises, the sources say.
"What
has surprised many people at the company is that soon after Murerekwa
was
dismissed in March he imported six long-haul vehicle horses which he
collected from Durban. The party has not done anything to recover the money
borrowed from the RBZ under PSF," the source said adding: "the company is
reeling under serious debt stress."
An equal number of light
trucks purchased purportedly for newspaper
distribution remain unacccounted
for since the managing director's
dismissal.
Zanu PF secretary
for publicity, Dr Nathan Shamuyarira, who is the sole
signatory to cheques
and payments made by Jongwe Printing & Publishing
Company, refused to
shed light on the printing press deal. Neither would he
comment on the PSF
loan or the circumstances under which Jongwe Printers
parted ways with its
managing director.
"Ask Murerekwa. We wrote him a letter of dismissal
and I cannot comment
beyond that," Shamuyarira said when asked what action
the party was taking
to rationalise the bungled deal.
Sources say
one of the three managers hired by Murerekwa, a Mr Gundu, was
contemplating
resigning as well but it was not clear at the time whether the
resignation
is linked to the intricate scam that led to Murerekwa's
dismissal.
Last month Reserve Bank governor Gideon Gono revealed
that several
companies, which had borrowed money under the PSF facility, had
not repaid
their loans. Gono was reacting to criticism expressed by captains
of
industry at the recently ended CZI congress fingering RBZ of failing to
provide foreign currency to commerce and industry.
Zim Independent
Itai Mushekwe
IN what appears to be an admission of his botched
land reform, President
Robert Mugabe says he has learnt "a host of lessons"
from the land seizures
which have ruined the country's agricultural base
with output continuing to
plummet.
Mugabe said the best lesson he has
learnt was the need to use scientific
methods to enhance agricultural
productivity and economic development.
"Having restored land to the
people," said Mugabe. "We have learnt a host of
lessons, all pointing to the
challenge of ensuring food security for the
people."
Mugabe was
speaking at the just-ended food security conference attended by
African
ministers, including representatives from the Food and Agriculture
Organisation (FAO) and World Health Organisation (WHO) on
Monday.
He added: "Chief among these is that of engaging more
scientific methods to
ensure greater productivity of all the resettled land.
The droughts I have
made reference to earlier have raised the need for us to
plan and embark on
a systematic national irrigation development
programme."
His remarks, which came against a background of food
shortages, are widely
seen as a tacit admission of the mistakes made during
the disastrous land
redistribution exercise that has precipitated an
economic and agricultural
recession.
Irrigation systems have been
vandalised or stolen. Due to haphazard land
reforms, the country has been
transformed from being a net producer of maize
and other grains to a net
importer of grains.
At least two million people have been surviving
on donor food aid which
Mugabe derided at the conference. He said food aid
programmes caused
food-borne diseases. Food agencies came to the rescue in
the aftermath of
Operation Murambatsvina.
The country is facing
another poor agricultural season after below-capacity
seed production and
planting, thus throwing out prospects of a meaningful
harvest. According to
a document on "Financing and Pricing of Maize and
Wheat" prepared by the
central bank last month, the country requires about
1,8 million tonnes of
maize a year to meet national requirements. The
central bank projects a
gloomy output for this season set at a paltry 750
000 tonnes, giving a
massive deficit of 1 050 000 tonnes.
While claiming to have learnt
lessons from his land reform programme, Mugabe
also defended the exercise,
saying it was designed to "enhance food security
and empower our people". He
added that land reform was not intended to
dispossess "those who through
colonialism were in possession".
However, the punitive Constitutional
Amendment Bill (No 17) which Mugabe
recently promulgated into law, is set to
derail government's so-called
efforts to revive agriculture since land has
been turned into a state asset
and is likely to be appropriated on the basis
of political patronage.
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