• Frontline States asked Mugabe to honour Lancaster Agreements
• CIO boss faces arrest
• ESC silence on MDC man queried
• ‘Deserter’ challenges court martial trial
• Gweru braces for rates hike protest
• Negotiations best option for Zimbabwe – survey
• Intensify fight against AIDS
• Enough of this endless patience!
• Supplementary budget to increase inflation
• Laws against cash hoarding stifle growth – economists
• Why Mbeki will not tackle Mugabe head-on
• Preferential treatment of soldiers, police by banks unwarranted
• Mugabe simply punishing NGOs
• UN limits 'political' Zimbabwe aid
• Africa Ministers Urge EU to Lift Zimbabwe Sanctions
• The horrors of having an executive PM
• Talks if success is certain
• RBZ urged to adopt tougher measures on cash crisis

Saturday, August 23, 2003 .

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By  Henry Lyimo

The Zimbabwe government did not deal with the land issue right after
independence in 1980 because of provisions of Lancaster Agreements the
country was advised to honour by former frontline states.
The Zimbabwe Minister for State in the President's Office (Information and
Publicity) Prof. Jonathan Moyo said in Dar es Salaam yesterday that it was a
mistake to honour the agreement which provided for acquisition of white
settlers possessed land in the "willing seller-willing buyer framework."
"It is a historical fact. We did a mistake," said Prof. Moyo at a public
talk organised by the University of Dar es Salaam Academic Staff Association
(UDASA) at the Hill.
The frontline states whose main agenda was liberation of all Southern
African countries from colonialism included Angola, Botswana, Tanzania,
Zambia and Mozambique.
Prof. Moyo, who was an external examiner at the University in 1997 and 1999,
said the frontline states took position on the matter and convinced Zimbabwe
to compromise dreading that other alternatives might have jeopardized the
chances of independence for Namibia.
Prof. Mwesiga Baregu of the University of Dar es Salaam, who attended the
talk, further said UDSM lecturers in a special committee held a protest
meeting against pressures of frontline states to Zimbabwe over the agreement
in early 1980s.
Prof. Moyo said however that Zimbabweans were not blaming the frontline
states, but rather were praising the countries for their contribution to the
liberation of their country.
He said the problem in Zimbabwe was due to the fact that people had ideally
two Zimbabwes in mind one being mythical and another real.
The mythical Zimbabwe is the white settlers' image of the country, an Euro
Zimbabwe they fight to preserve and have never given up even after the
independence, according to him. He said land redistribution programme was
unfinished business of the liberation which if not carried out would have
made a mockery to the sacrifices made to attain the independence.
"Everything that happens in Zimbabwe has to do with that quest to give land
to its rightful owners. It was unfinished business of liberation," he said.
"People were unhappy with the state for failing to fulfil that. Majority of
Zimbabweans who are peasants wished that done," he said.
He said the programme was to acquire 16 million hectares of arable land
which was held by the white settlers.
He accused the Zimbabwe opposition party Movement for Democratic Change
(MDC) of being created and funded by the white settlers and their friends
after they realized Zimbabweans were after re-possessing their land.
"These people imply the struggle for democracy started in 1999.they were
created to challenge the very basics of independence," he said.

      Bennet’s lawyer, Arnold Tsunga, has also written to police authorities
in Manicaland requesting that they take action against their colleagues.

      Tsunga told the Daily News yesterday he was also under instruction
from his client to pursue a private prosecution against the police and
intelligence officers.

      In a letter to the police officer in charge of crime in Manicaland
province, Killian Mandisodza, the DNWM’s senior investigations officer,
Felix Matenda, detailed how a police assistant inspector Mupfuriranwa and
CIO boss in Chimanimani, Joseph Mwale, and four others allegedly seized from
Bennet’s workers game meat that had been poached from Charleswood. The
wildlife officer did not specify the date when the incident occurred.

      The police and intelligence officers allegedly hid the carcasses which
could have been used as evidence against the poachers, according to Matenda.

      The poachers are believed to be suspected ruling ZANU PF party
supporters who seized part of the farm during the illegal invasion of
white-owned farms last year by pro-government mobs.

      Matenda’s letter, written last month, reads in part: “Police disposed
of the exhibits to include meat. Not even the skin was preserved for
prosecution . . . my opinion, which I would like to put forward (for) your
serious consideration, is that your officers committed an offence.

      “Apart from the Police Act that you can apply in punishing them, I
would like to suggest that they be charged in a criminal court in terms of
Section 4 (a) (b) of the Prevention of Corruption Act. You could be of
better ideas or opinion, but there will be no better options than this.”

      Mandisodza could not be reached for comment yesterday. He was said to
have visited Rusape town on business.

      Police spokesman Wayne Bvudzijena, who was still ascertaining the
details pertaining to the matter by the time of going to print last night,
could not provide details on what action, if any, the law enforcement agency
had taken against the police and intelligence officers.

      The DNWM’s head in Manicaland province, Henry Charidza, yesterday
confirmed that his officers had written to the police but he would not
disclose what action action had been taken against the police and
intelligence officers.

      Charidza said: “I did not write the letter myself. Look for Matenda
because he is the one following up on that one.

      Anyway, I will need a written directive from my bosses to comment
further.”

      Police sources, however, told this newspaper yesterday that because of
political interference no action was likely to be taken against the police
and especially Mwale, whom they described as untouchable.

      Mwale, who is barred from Charleswood Estate by the High Court, has
been accused by the MDC on several occasions of committing or aiding
violence and human rights abuses against its supporters in Chimanimani.

      Former High Court judge James Devittie directed the Attorney-General
(AG)’s Office two years ago to have Mwale investigated on charges that he
and others murdered MDC activists Talent Mabika and Tichaona Chiminya in the
run-up to the 2000 parliamentary election. Although the AG’s Office says it
has ordered the police to probe Mwale, to date no action has been taken yet
against the CIO agent over the MDC’s activists’ deaths.

      A police officer, who spoke on condition he was not named, told the
Daily News: “Matenda’s letter has been gathering dust. Issues surrounding
Charleswood Estate are very political and difficult to handle.

      “It seems Mwale and his guys in Chimanimani have full blessings of the
chefs to do whatever they want at the farm and this has made the
untouchable.”

      In his letter to Manicaland police, Tsunga claimed that Mwale and his
colleagues were even heard urging the poachers to kill more animals at
Charleswood.

      “What surprised our clients is that when the police attended the scene
in the company or under the leadership of Joseph Mwale, they allowed the
poachers to go scot-free and loaded the meat into CIO operative Mwale’s
vehicle,” wrote Tsunga.

      According to Matenda, Mwale and his colleagues threatened to shoot the
farm workers for arresting the suspected poachers. Matenda wrote: “I would
not imagine a reasonable police officer who would arm himself to go and
recover meat from an already disarmed group of poachers. Not only to arm
themselves in this case, they even went to threaten the people who had
effected a citizens’ arrest by corking their firearms. “It is very
disgraceful for police officers to be seen doing such things in the eyes of
the public.” By Farai Mutsaka Chief Reporter

      "We believe it was improper for neither the Registrar-General’s Office
nor the ESC or its officials to have failed to inform this court until now
that the only opposing candidate advised them in writing on that day that he
was withdrawing," Sheila Jarvis, of Atherstone and Cook law firm, wrote to
High Court judge Justice Ben Hlatshwayo’s clerk.

      She added: "This information was peculiarly within their knowledge and
it clearly should not have been withheld.

      "With such a formal report to their officials at the time, the ESC
suggestion that the proceedings there were relaxed and peaceful in their
view and the government claim now that this was a paradigm of a lawful
election are insupportable."

      According to the ESC report submitted to court this week, George
Mutigwe, who had allegedly filed his papers as an MDC candidate for Ward 7,
later withdrew his candidature saying he feared for his life.

      Court Reporter

      In a special plea to the court martial, Harare advocate Tonderai
Bhatasara, representing Chikanya, said in terms of ZNA regulations

      his client’s contract of employment automatically expired after he
failed to renew it on 30 June last year.

      Chikanya could not be court-martialled for offences allegedly
committed from 29 June last year to 18 March this year as declared in the
second charge against him because he had reverted to being a civilian,
Bhatasara said.

      The court reserved judgment on the special plea until Thursday next
week.

      The ZDF has charged Chikanya with desertion for allegedly failing to
report for work on 29 June 2002 and remaining away without official leave
until he was arrested on 18 March this year by members of the army’s
counter-intelligence unit.

      Bhatasara said: "Allegations against the accused (Chikanya) as
contained in the second count were committed from 29 June 2002 until 18
March, 2003. During this period it is clear that the accused was not
employed by the Zimbabwe Defence Forces.

      "The accused, as of 1 July 2002, was a civilian and ‘desertion’ by its
very nature and as defined in section 1(2)(a) of the First Schedule
necessarily involves members of the defence forces. It is legally impossible
and factually impracticable for a civilian to commit a crime of desertion."

      Bhatasara said if the court martial insisted on trying Chikanya for
desertion it would be breaching the Defence Act, which limits its
jurisdiction to ZDF members.

      The ZDF is also charging Chikanya with illegally absenting himself
from duty when he extended the official leave of absence he was granted
after a tour of duty in the Democratic Republic of the Congo.

      According to army authorities, Chikanya went away without official
leave for 227 days from 16 September 2001 before briefly rejoining the ZDF
sometime in May last year.

      He then allegedly disappeared again on 29 June until he was arrested
in March this year.

      Bhatasara told the court martial that his client was severely tortured
by the army intelligence officers and coerced to appear before a media
conference "admitting" to having conspired with opposition Movement for
Democratic Change party activists to assault residents in various
high-density suburbs of Harare and Chitungwiza during mass job stayaways
organised by the opposition party in March.

      The Press conference was aired for several days on the state-owned
Zimbabwe Broadcasting Corporation’s television and radio news bulletins.

      Court Reporter

      GRRA chairman Willie Muringani, who also said his association was
going to petition the government to block the proposed budget, said the
rates boycott was aimed at forcing the council to consult ratepayers before
implementing the budget.

      Muringani said: "There are objections to this supplementary budget and
we have already started telling people to get ready for a boycott of the
rates.

      "We will (also) petition the government and boycott paying rates in
order to force the council to engage us in a dialogue on the way forward."

      Under the Urban Councils Act, Local Government Minister Ignatius
Chombo must approve council budgets before they can be implemented.

      Chombo last week told local authorities that he would first check
whether there were objections from residents before approving proposed
budgets.

      The Gweru City Council last month resolved to defer the supplementary
budget, saying the proposed rate hikes would overburden hard-pressed
residents.

      Councillors, most of them seeking re-election next week, told the
finance committee at Town House to find alternative means of raising money.

      But sources told the Daily News that the council was now apparently
backtracking on its earlier position after the finance committee told it
there was no other way of raising funds to keep the city running except
through rates hikes as proposed in the supplementary budget.

      No comment was available from Town House on the matter. But city
finance committee chairman Michael Gara told the Press last week that the
proposed rates hike was because of the steep rise in the cost of equipment
and other materials required by council.

      Own Correspondent

      The Washington-based institute said that although the idea of a
national government of unity fell out of favour following the breakdown of
talks between the government and the opposition Movement for Democratic
Change (MDC) in April 2002, a poll conducted last year showed that the
majority of Zimbabweans were in favour of this option as a way out of the
political impasse.

      Since a unilateral solution to the political deadlock was increasingly
impracticable, movement towards a transitional government or some form of
power sharing has gained ground, the political think-tank found.

      This scenario could include joint parliamentary and presidential
elections, as well as various constitutional amendments curtailing the
powers of an executive presidency and changing electoral laws.

      But while media reports exploring this option have increased, so too
have concerns about transparency and stakeholder participation by civil
society organisations.

      The think-tank remarked that civil society groups were keen to
negotiate their role in the transition process, aiming to ensure that they
are not left out by the government and MDC initiatives.

      "Some are arguing that any mediation efforts and transition dialogue
must formally include representatives of civil society to ensure the talks
move beyond the narrow balance-of-power concerns of ZANU PF and the MDC,"
the report noted.

      Human rights groups have also called on the international community
and United Nations to investigate reports of rights abuses. News reports on
Wednesday said the Zimbabwe Human Rights NGO Forum will approach the United
Nations Commission on Human Rights to request it to second a special envoy.

      The institute also questioned the impact of further mass protest
action, saying acts of civil disobedience alone were unlikely to result in
political change given the government’s control of the security apparatus.

      "While there is still a popular view that mass action may be a
necessary condition for continued dialogue, there is perhaps even greater
fear of violent government clampdown – particularly against students, who
are at the forefront of any such action," the report said.

      Change from within ZANU PF was more likely, given overtures last year
by the chief of the armed forces General Vitalis Zvinavashe and Speaker of
Parliament Emmerson Mnangagwa to the MDC. However, the MDC made public the
overture, which controversially involved early retirement for President
Robert Mugabe. Mnangagwa subsequently denied approaching the MDC.

      The institute commented that lack of consensus within ZANU PF could
make inter-party talks less likely and "until the succession battle is
resolved, the anti-Mnangagwa faction has a strong incentive to block talks
mediated by South Africa or other regional powers".

      Should change come from within ZANU PF, ruling party elites would seek
protection from investigations into the acquisition of personal wealth, and
from potential prosecution for human rights violations, the report stated.

      Despite recent hints by Mugabe that his party members should discuss
the succession, the "lack of expressed interest suggests that Mugabe has not
signalled sufficiently to his party members that he will step down any time
soon".

      In the event of a president’s resignation or death, the Zimbabwe
constitution requires a fresh poll within 90 days.

      The study found that change via military involvement seemed to have
the support of some within ZANU PF in 2002, and would benefit the current
elites in the country, since such a move was unlikely to bring about
substantive policy change. However, recent events brought into question
whether a military coup would indeed be successful.

      Deteriorating conditions of service and real wages have affected
morale and created some degree of resentment and alienation in the lower
levels of the military, but while these conditions were worth considering in
view of a possible military coup, the report downplayed the possibility of
collective action.

      "Divisions between the command and rank and file would be expressed in
other ways – for example, by lower-ranking soldiers refusing to obey orders
to attack unarmed demonstrators, or stop mass actions," the report said.

      The report concluded that a negotiated or mediated strategy held the
strongest prospects for breaking the deadlock between the two parties, and
charting non-violent change in Zimbabwe.

      – IRIN

      According to Health Minister David Parirenyatwa, national prevalence
in Zimbabwean adults aged 15-49 years fell from 33 percent in 2000 to 24.6
percent, a drop he attributed to a "multi-sectoral approach" in fighting
AIDS.

      "As has been revealed in the survey conducted by the Ministry of
Health, there has been a multi-sectoral approach in fighting HIV and AIDS by
churches, traditional healers and non-governmental organisations, among
other people," the minister said at the launch of a report containing the
statistics.

      All well and good. But at the risk of being accused of cynicism and
never seeing any good in anything the government does, we must sound a note
of caution.

      We sincerely hope that these statistics were released in good faith
and not because the ruling ZANU PF wants to score points and gain good
publicity by being seen to be doing something constructive about the
HIV/AIDS problem.

      It would be extremely reckless – if not criminal – if the government
issued such statistics as a public relations gimmick and not because this is
what a thorough and level-headed analysis indicates is the real situation on
the ground.

      This drop in figures could be the result of many factors, some of them
technical and completely unrelated to an actual drop in HIV prevalence in
the country. This is something we would want to believe the Ministry of
Health fully realises and took into account before going public with the
results of its survey.

      Unfortunately, there are many who might take such seemingly positive
statistics at face value and gain a false sense of security about HIV
prevalence in Zimbabwe. This is something the government and anti-AIDS
groups should strenuously guard against.

      As Parirenyatwa pointed out himself when he launched Zimbabwe’s 2003
HIV and AIDS estimates, more data and further surveys are necessary before
the country can conclude that it has reached a turning point as far as the
AIDS pandemic is concerned.

      In addition, the government and the nation as a whole cannot pat
themselves on the back until Zimbabwe can conclusively say that the rate of
new infections in the country has dropped significantly.

      Only such statistics can indicate that the anti-HIV messages that the
government and non-governmental organisations (NGOs) have been strenuously
disseminating have had an impact.

      It is imperative that we do not rest on our laurels simply because the
results of one survey seem to show that there has been a positive change in
statistics. The nation must continue to be vigilant.

      Anti-AIDS activists must continue to bombard Zimbabweans, especially
the young, with messages that emphasise responsible sexual behaviour, in a
bid to curb new infections and the spread of the virus that causes AIDS.

      It is equally important that the government and NGOs continue to
pursue policies aimed at assisting people already infected with HIV so that
they can live positively with the virus, as well as those orphans,
care-givers and others who have been indirectly affected by the pandemic.

      Failure to adequately address the question of HIV infection prevention
and care will be disastrous for a country that is already feeling the impact
of a disease that is striking down the most economically active members of
the population.

      Industry and commerce are already being affected through increased
absenteeism, rising medical costs and declining output. Agriculture, the
embattled backbone of Zimbabwe’s economy, has not been spared either.

      This is a problem that touches all Zimbabweans alike, and as such, is
a burden that must be embraced by all if the nation is to make any headway
in its fight against the pandemic.

      I am deeply frustrated. Angry, really. I am presently unable to write
about the amazing world of entertainment and what I consider to be the media
’s shortcomings. Somehow, such matters seem to be rather inconsequential
now.

      My near-perfect world has been dented. I am horrified by signs that
this dream world may soon be devastated.

      The entertainment world is one that somehow manages to stay on its
feet in times of hardships, the reasons being that the more people suffer,
the more they need to escape from the harsh realities of life.

      It is also rather obvious that the majority of those who find
themselves with "surplus" amounts of money for entertainment are getting
this money through alternative means, as opposed to waiting for a monthly
pay cheque.

      As one who has chosen this field to make a living, I have been largely
unscathed by the problems that face other people in various professions. I
have also managed, to a great extent, to insist on transferring most
problems to those who hire me, especially in terms of insisting on being
paid in cash.

      Whenever I have had to deal with cheques, I have done my best to look
for people who are "connected" to help me out. However, it has become clear
to me that I cannot be insulated from the harsh reality of the situation
indefinitely.

      I have said that I am angry and I really am, I am livid. I am angry
because I recently had to stand in a bank queue for about forty-five minutes
and all I wanted to do was enquire about my bank balance.

      Some of you have had to stand in these queues for longer periods of
time and maybe even on a daily basis in order to pay your rentals and for
groceries etc. You will probably get mad at me thinking that I should not be
complaining about a "mere" forty-five minutes.

      The rationale applied here is that I should not complain because I’m
having it easier than most. Such thinking is as ridiculous as the arguments
put forward by our leaders not so long ago.

      Politicians used to say that, though corrupt, our country was better
off than nations such as Nigeria. They even had the temerity to say that
even though things were bad, we were better off than the likes of Zambia!
Where has that thinking gotten us?

      There’s hardly anything new about what I’m about to say, but why do
Zimbabweans believe in the coming of a messiah? A messiah in the form of
Thabo Mbeki or George Bush, for instance? Why do we have this unfounded
optimism that one day, things will just change for the better?

      Our government, as we well know, believes in scapegoats; they believe
in the blame game. It is the fault of the "British- sponsored" MDC, the
weather, the Martians even!

      Supposing it is the fault of the British. Suppose it is the British
who are sabotaging our economy because of the land issue. Did you expect
them to rejoice when the land was taken? Did you not expect them to
retaliate? What contingency plans did you come up with? Rambai makashinga
(remain steadfast)? Is that a plan? During hardships, a nation needs men of
vision who can come up with counter-measures.

      How many economic recovery measures have been introduced to no avail?
Was it Tony Blair who sent Minister Made up in a plane so that he could
claim that he had seen that we had enough maize to feed the nation?

      I am neither a politician nor an economist, but I do not need to be
either of these two to see that Zimbabweans are being forced to deviate from
their chosen fields and become "innovative" – innovation being another word
for corruption.

      I don’t need to be a politician to see that the nation has been let
down by its leaders. I, for one, am tired of kushinga (perseverance) without
an end in sight.

      I demand a time frame. I demand to be shown some light at the end of
the tunnel. I demand a shorter tunnel! I demand to know the exact extent of
the country’s problems. What plans are being made to solve these problems
and the time frame. How long is it going to take before we stop queuing for
cash that may or may not come? When are we going to have adequate fuel
supplies? Is it a matter of weeks, months or years?

      We Zimbabweans need to change the creed by which we live. We need to
demand competence and accountability.

      Let me give you a sporting example of what I mean.

      The Zimbabwe Football Association will eventually have to hold
elections for a chairman. Every candidate must be forced to come up with
concrete plans. He or she cannot just promise to bring change to the running
of football. Let a candidate come up with definite goals, with time frames.
For example, when will Zimbabwe quality for the World Cup finals? When will
our Under-17s go to the World Youth Championships? When a candidate is
elected on the strength of his promises, and he fails to deliver, he should
not have to be told to go, he should simply resign even if it is the fault
of the referees, coaches or even the Zambians! If a candidate is foolish
enough to give unrealistic targets, let him suffer for it. In England,
despite having a star-studded line-up at his disposal, Claudio Ranieri
insists that 2005 is a more realistic target for his Chelsea team to win the
Premier League Championship. Would not it be fair to give him until then to
achieve his goal? Zimbabweans, in general, constantly get this urge to vent
their frustrations, after which they go back to being their docile selves. I
have done my bit of yelling. Next week, in typical Zimbabwean style, I will
be ready to write about the Freddie Gwala show. By Musavengana Nyasha
Musavengana Nyasha is an entertainment consultant.

      The analysts said although Murerwa acknowledged to Parliament that
inflation was the government’s major challenge and laid out the economic
problems facing Zimbabwe, there was no indication in his presentation to the
House that his ministry had any ideas for resolving the crisis.

      In his presentation, Murerwa merely said that inflation was projected
to rise further and that the nation should brace for harder times ahead.

      Zimbabwe National Chamber of Commerce economist James Jowa said with
the government failing to provide solutions, the economy was hurtling
towards total collapse.

      "We are in a serious problem, things are not working," said Jowa. "The
government is aware of the problems, Murerwa did chronicle (them). But my
concern is that there does not seem to be any solutions."

      The analysts said while not proffering solutions to existing problems,
the Finance Ministry was, however, adding to the crisis through a
supplementary budget that would widen the government’s budget deficit.

      Because of the supplementary budget, the deficit will end this year at
around $301 billion, or 18.8 percent of gross domestic product (GDP), up
from an initial forecast of $230 billion or 11.3 percent of GDP.

      Because it is unable to attract foreign direct investment or financial
aid from multilateral and other donors, the government will be forced to
resort to raising funds from the domestic banking sector and the Reserve
Bank of Zimbabwe (RBZ), the analysts noted.

      This will not only crowd out the productive sectors, such as
manufacturing, which declined 8.6 percent in the first four months of 2003,
but will also push up money supply growth, fuelling inflation.

      Inflation increased 399.9 percent in the year to July, from 364.5
percent the month before, while money supply growth was pegged at 226
percent in April this year.

      University of Zimbabwe business studies lecturer Anthony Hawkins said
if the government was serious about bringing down inflation, it should be
working towards reducing its budget deficit.

      Hawkins said with more than 40 percent of the supplementary budget
being taken up by salaries alone, the economy was still far from recovering
and was probably operating at 1970s levels.

      He said: "If inflation is a problem, why increase the budget deficit?
Ultimately, the budget deficit is the biggest source of inflation. It is
difficult to take it (supplementary budget) seriously."

      Analysts also warned that below inflation rates could scupper the
government’s plans to raise $195 billion for the supplementary budget from
banks.

      The analysts said if the Treasury was unable to raise the funds, it
would be forced to push the central bank to release more money, putting more
pressure on money supply growth and inflation.

      "Because of the negative interest rates, the Treasury bills might be
rejected and where will they get the money?" said Jowa. "They might ask the
RBZ to print it, which raises money supply and inflation. The vicious cycle
will continue."

      In his presentation, Murerwa said the "high inflationary spiral" could
only be broken by engaging business and labour under the Tripartite
Negotiating Forum (TNF), but analysts said the Zimbabwe crisis was now
beyond the TNF.

      The said only an urgent political solution could halt the country’s
economic meltdown.

      The commentators said the impasse between Zimbabwe’s main political
parties, the ruling ZANU PF and the opposition Movement for Democratic
Change, had added to the crisis.

      Resolution of the impasse and the abandonment of policies that have
alienated Zimbabwe from the international community would enable the country
to mend fences with donors and investors, the analysts added.

      This would enable Zimbabwe to attract the crucial foreign investment
and aid needed to turn the economy around. Independent economic consultant
John Robertson said Zimbabwe had reached a point where a political solution
was the only way out of its crisis. "All the economic challenges we are
talking about need a political solution. This is a disaster," Robertson told
the Business Daily. The analysts noted that a political solution would
restore confidence, which they said was lacking in the economy. In his
presentation to the House on Thursday, Murerwa also noted that restoring
business confidence was crucial to Zimbabwe’s economic recovery. He also
noted that the country’s economic decline was heightened by the government’s
failure to timeously implement agreed policies. "Policy reversals and
inconsistent implementation of agreed policies undermine the credibility of
our economic strategies," said Murerwa. "Non-implementation of agreed
policies ultimately destroys confidence in the economy and perpetuates
conditions for an environment of escalating inflationary pressures."
Analysts gave as an example of the government’s failure to follow through on
policies a promise the Finance Ministry made earlier this year to constantly
review its exchange rate policy. When it introduced its export incentive
scheme, under which it devalued the Zimbabwean dollar, the ministry pledged
to review the exchange rate every quarter, but six months later, no review
has been made. As a result, business is now lobbying for a devaluation
because the official rate of $824 against the United States dollar is no
longer viable. The government has also not met most targets it set out in
its latest economic blueprint, the National Economic Recovery Plan (NERP),
which it says will turn the economy around. The NERP programme prioritises
the agricultural sector, which the government believes will drive Zimbabwe’s
economic recovery, with tourism, mining and other sectors also contributing
to the turnaround. Murerwa this week said agriculture, which has been
declining since 2000, would recover by 2.3 percent this year, but analysts
said this was over-optimistic. Agricultural output has been adversely
affected by a controversial government land reform programme, under which
the state has taken over most commercial land in what it says is an attempt
to redress colonial imbalances. The analysts said with the shortages of
inputs facing farmers, it was unlikely that agricultural output would pick
up next year. "That is laughable. It’s difficult to take him (Murerwa)
seriously," said Hawkins. "This is the man who claimed that inflation will
be 96 percent by the end of this year." Jowa added: "That is a big lie, that
will not happen. Let’s admit it, we have messed up the land reform (and)
there is no agriculture to talk about." Business Reporter

      The government this month introduced regulations making it a criminal
offence for individuals and organisations to be in possession of cash
exceeding $5 million as part of measures aimed at resolving severe money
shortages in Zimbabwe.

      State security agents are authorised to seize excess cash from
individuals, traders and businesses.

      But analysts this week pointed out that cash was crucial for
transactions in the country and making it an offence for businesses to hold
large amounts of money would adversely affect their activity.

      "It’s a pity that the government is working flat out to kill the
widely used payment system without introducing a universally acceptably
alternative," University of Zimbabwe economist Albert Makoche said.

      He added that most of the business transactions conducted in the
country required cash and making it an offense to hold more than $5 million
would suppress the rate at which business was conducted.

      Several retailers and company executives who spoke to the Business
Daily expressed concern at the new law, describing it as a desperate measure
that would "drag the nation backwards".

      "We are now tired of these new laws and regulations which the
government is introducing to cover its failures," said an angry shop owner
who spoke on condition of anonymity.

      He added that it was difficult to operate a retail outlet with less
that $5 million on hand a day given the volume of transactions that had to
be conducted.

      The finance manager of a local steel company added: "We were not
consulted when those limits were created and it is going to work to our
disadvantage since our company needs very huge volumes of cash per day, far
beyond the gazetted limits."

      The company executives and local economists said the government should
come up with comprehensive and sustainable policies instead of relying on
command economy policies that had failed in the past.

      They pointed out that government price and restrictive exchange
controls had worsened Zimbabwe’s economic crisis in the past three years.

      Trust Bank Corporation chief economist David Mupamhadze said: "The
shortage of cash in the country is not directly a result of some people
hoarding cash, but it is a product of the government’s inability to source
enough foreign currency to import the required paper.

      "The country is operating in a hyper-inflationary environment, which
requires huge volumes of cash to complement the skyrocketing prices in the
economy."

      He added that the country must invest funds in the creation of higher
denominations bank notes, instead of trying to control the volume of notes
and coins through unorthodox means.

      According to the new regulations, individuals are only allowed to
withdraw a maximum of $2 million a day, while traders and parastatals are
limited to aggregate cash withdrawals of up to $4 million.

      However, any cash withdrawals exceeding $4 million require special
forms that must be sent to the Reserve Bank of Zimbabwe for approval.

      Economic consultant John Robertson noted: "The limit imposed on
traders and other companies is the one which is a bit sad since they conduct
very huge businesses which need high volumes of cash."

      He added that inflation was still the major problem that needed to be
addressed to reduce the volume of cash needed by economic agents for certain
transactions.

      "The government really knows the root cause of the problem, but the
fact that it is politically unpopular is making it difficult for it to
execute the necessary policies," said Robertson.

      The analysts said the legislation limiting cash would only force
traders to come up with ways of getting around the new laws and would do
little to alleviate the cash shortages. Century Holdings economic analyst
Ranga Mandaza pointed out: "Bureaux de change were banned to thwart the
trading of forex on the parallel market, but foreign currency is still being
traded on the parallel market." By Stanley Taderera Business Reporter

      The longer Mugabe tarnishes his image internationally, the more
difficult it will be for him to remain the statesman he was, thereby passing
the baton of statesmanship to Mbeki.

      Mbeki is being bandied about as a weakling, but he is proving a
tactician who has found salvation in the demise of Mugabe.

      Meanwhile, Mugabe and his rocket scientists are priding themselves in
having outwitted Mbeki. Little do they know that they are being taken to the
cleaners with no detergents.

      Here is the scenario: South Africa has mammoth problems of poverty,
unemployment and violence, the last of which can be eradicated by tackling
the first two.

      Zimbabweans are renowned for their industry. Mugabe and his henchmen
have played right into Mbeki’s hands. The continued erosion of Zimbabwe’s
economy is inversely the building of South Africa’s economy. The company
closures in Zimbabwe result in most workers relocating to South Africa and,
thus, creating the much-needed employment there.

      Have we not observed of late the deafening silence from the Congress
of South African Trade Unions (COSATU) – because they too have been reined
in? COSATU stands to gain from substantive employment created by the demise
of Zimbabwe’s economy.

      The continued leadership of Mugabe is abetting the crippling of
Zimbabwe’s economy, and as long as Mugabe remains in power, Zimbabwe’s
economy is destined to reach critical levels, all of which serve to entrench
the supremacy of South Africa over all the economies of southern and central
Africa.

      Zimbabwe, through the Southern African Development Community
protocols, will be a sure market of cheap products from South Africa,
joining Lesotho, Swaziland and Botswana etc.

      The scenario goes further – all erstwhile professionals will trek down
to South Africa to create solid foundations of entrepreneurship.

      It is, therefore, in Mbeki’s favour to perpetuate Mugabe’s misrule
till he falls dead from old age because any urgent meaningful change of
government will only scuttle his plans to entrench himself as the only
African leader to succeed from where whites left off.

      The industries of Zimbabwe abound with stories of shelved plans for
expansion due to the unviable economic environment in the country and for
many, South Africa remains the safe haven for reinvestment with Zimbabwean
skilled personnel. This sad state of events further exacerbates the
inability of Zimbabwe to compete fairly in the economies of the Democratic
Republic of Congo and Angola, thus leaving South Africa unchallenged.

      As opposition Movement for Democratic Change (MDC) president Morgan
Tsvangirai aptly put it, and I quote: "Therefore, their current effort (by
Mbeki and Nigerian President Olusegun Obasanjo) to unilaterally retire the
mandate of the Commonwealth troika, thereby scuttling a multi-lateral effort
to resolve the Zimbabwe crisis, must be seen in the context of this broad
nefarious strategy."

      F C Chamunorwa

      MDC Secretary for Information and Publicity

      Mashonaland East

      This is an open letter to the Bankers’ Association of Zimbabwe. On
behalf of the starving masses, I am seeking clarification on this issue.

      A serious shortage of local cash is being experienced across the
country. One has to wake up as early as 3 am to be among the first 200
people in the queue, for which numbered cards are issued to each person on
arrival as a control measure and in order to avoid unruly queue-jumping
elements.

      On a normal working day, there is usually no cash when banks open at 8
am.

      As soon as it arrives at around 10 am, troops of undisciplined
policemen and soldiers in camouflage arrive and go straight to the counter
to receive the long-awaited cash, at the expense of those who would have
been in the queue since 3 am.

      My question to the association is: what facts did you take into
consideration when you decided that security agents should receive the
scarce commodity first?

      We all have starving families, we all want to go back to work, we are
all human beings.

      The principle of first come, first serve should be applied to
everyone. If nurses can follow the meandering queue, why can’t these rogue
soldiers?

      We should suffer the consequences together. Please control these
people.

      Disgruntled

      Harare

      Introduction of weekend trains ill-timed and costly

      May you allow me to comment through your paper on the way that the
National Railways of Zimbabwe (NRZ ) is operating?

      I was shocked recently to learn that there was going to be another
so-called freedom train during weekends.

      It is not that I am saying there should not be one, but what I am
saying is that with the current difficulties that the parastatal is
experiencing, the timing is just bad.

      With the state that the trains are in and the state of the signals on
the rails, one can never imagine that they can undertake such projects, as
if the "freedom trains" that are there are not straining their resources to
the limit.

      If one boards a train to Bulawayo at 10 in the evening and arrives at
1 in the afternoon the following day due to stoppages as a result of signal
failure, which has become the order of the day, then I do not see any reason
why they should add more woes to their already strained resources.

      The NRZ should know that they are surviving because of the money they
get from these long trips and not the urban commuter trains. Passengers are
beginning to realise that they can save money when they use a bus as
compared to trains nowadays as they are spending almost 24 hours travelling.
The NRZ is surely crawling, meaning that it is struggling to survive, and
with the introduction of a further burden of Saturday and Sunday trains,
then very soon, ichaita zvekugwesha because of this. Concerned Bulawayo

      President Robert Mugabe has said we must repent. He was a
schoolteacher, and what do schoolteachers do to unrepentant children? Punish
them. He knows that donors will not provide food aid under the new
conditions, so he will not be responsible for the mass starvation that
occurs – they will be. In the meantime, he can be rid of the 5.5 million who
do not support him and ZANU PF. The 5.5 million have shown that they will
just roll over and die and not be any threat to him. Once the population is
halved, he will be able to more effectively control the remainder by giving
them all land.

      If government’s motives are not that sinister, then maybe they plan to
transfer wealth to the povo (or themselves) by allowing the maize that has
been donated to be sold – $49 billion at Grain Marketing Board prices or $1
050 billion at the parallel rate.

      A McCormick

      Harare

      The United Nations has instructed local aid agencies in Zimbabwe to
stop distributing food aid in areas where there is government interference.
      The UN's World Food Programme, which is currently feeding over three
million people in Zimbabwe, says there can be zero tolerance over political
interference.

      The instruction was issued after the Zimbabwe government ordered all
emergency food aid to be overseen by local officials.

      The WFP has instructed the local aid agencies through which it works
not to provide food if the distribution is controlled by government
officials.

      This puts it on a collision course with the government of Zimbabwe,
which has told village headmen that they should take charge of the
operation.

      President Robert Mugabe has been repeatedly accused of using food aid
as a political weapon - restricting help to people with membership cards of
the ruling party.

      Later this month Zimbabwe is holding a string of local elections.

      With declining support in his rural heartland, observers believe
President Mugabe is determined to use food to increase his share of the
vote.

Harare - A Zimbabwean government minister said on Saturday the ruling
Zanu-PF party will not be rushed into talks with the opposition Movement of
Democratic Change (MDC) unless the talks successfully end the country's
political and economic woes.

Pressure has been mounting in recent months on the country's largest
political parties to meet to iron out the political and economic problems
bedevilling the country.

"Talk we must eventually and when we do, a successful conclusion should be
guaranteed," Justice Minister Patrick Chinamasa was quoted as saying on
state television on Saturday.

"Because of the importance of the matter, nothing should be hurried or
rushed. We should never be stampeded into these talks if there is danger
that success will not be guaranteed," he said to journalists at a
UN-organised media seminar in the northern resort town of Kariba.

The proposed talks which broke down last year are expected to find ways of
pulling the southern African country out of dire economic straits and a
months-long political stalemate over the disputed presidential election of
March 2002.

Last year's talks had been brokered by South Africa's President Thabo Mbeki
and Olusegun Obasanjo of Nigeria.

Local church leaders last month launched fresh efforts to persuade President
Robert Mugabe's party and the MDC to resume the talks.

Talks between Mugabe's camp and the MDC, headed by Morgan Tsvangirai, ended
in deadlock last year after both sides managed only to draft an agenda of a
common programme.

The MDC has said it has taken "risky" actions to facilitate dialogue with
the country's governing party. It has dropped, from its proposed agenda, one
of the key and contentious issues that led to the breakdown of last year's
talks -- Mugabe's legitimacy.

But Mugabe last week put a damper on the prospects of the resumption of the
talks when he said the MDC needs to "repent" before any inter-party dialogue
took place.

"Those who seek unity must not be enemies...there cannot be unity with
enemies of the people," Mugabe said.

Zimbabwe African National Union - Patriotic Front (Zanu-PF) has accused the
MDC of being a front of the Western nations that are against Mugabe's
controversial land reform scheme of taking land from whites giving it to
blacks.

"MDC should not seek to go into dialogue with their hidden agenda to achieve
an imposed solution or to achieve what it failed to achieve through
attempted assassination, stayaways, rolling mass actions," Chinamasa added.