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Zeros back by December - Murerwa

Zim Independent

Clemence Manyukwe

FINANCE minister Herbert Murerwa on Monday launched a
thinly-veiled attack on Reserve Bank governor Gideon Gono when he told
parliament he had not been consulted on the new currency initiative which
has become a new political front in the Zanu PF power struggle.

Murerwa, who has crossed paths with Gono before over policy
issues, told the parliamentary portfolio committee on Budget and Finance
that he was not consulted by the RBZ governor before the introduction of the
new bearer cheques.

He said although three zeros had been knocked off the old bearer
cheques, there was no guarantee they would not be back on the new bearer
cheques by December due to low production and hyperinflation.

Murerwa said besides the currency reforms, a number of things
such as increasing productivity were imperative to turn around the economy.

Murerwa's remarks, coming against a background of fierce clashes
over the printing of money earlier this year, betray a strain between the
fiscal and monetary policy authorities.

Murerwa has been trying to stop Gono from straying into
quasi-fiscal policy matters, although the governor has ploughed ahead,
saying he has been given the mandate by President Robert Mugabe to pursue
"development strategies".

During the committee hearing, Murerwa said he did not know what
Gono meant when he said during his monetary policy statement last month he
was going to announce some things that even his bosses were not aware of.

Asked by committee chairperson and the ruling party's Guruve
North MP, David Butau, what Gono meant by this, Murerwa said he thought this
meant that he had not been consulted on the new notes. "I assumed that he
was referring to the changing of notes. And that is true because he did not
consult me," Murerwa said.

Murerwa said he was not sure whether the strategy to remove the
zeros would work. "The problem we have is of under-production. We have
removed three zeros but that is not a guarantee that come December they will
not be back," he said.

This was widely interpreted to mean Murerwa was distancing
himself from the new bearer cheques project, especially after Mugabe
rejected the minister's attempt to introduce a $250 000 bearer cheque in
June while Gono was away in Russia.

The new family of bearer cheques was hurriedly introduced by
Gono to replace old ones within 21 days.

The changeover has caused turmoil among retailers and the public
due to a shortage of smaller denominations. Most retailers have also taken
advantage of the transition to raise the prices of basic commodities.

When Gono went to Russia on May 31, Murerwa, together with the
central bank's acting RBZ governor at the time, Edward Mashiringwani,
approached Mugabe seeking permission to introduce a $250 000 bearer cheque,
but they were turned down. Mugabe confirmed on Heroes Day he had turned down
suggestions to introduce a $250 000 bearer cheque.

Zanu PF's Zhombe MP Daniel McKenzie Ncube also asked Murerwa on
Monday whether in pursuing quasi-fiscal policies Gono was not acting outside
his mandate. "He was acting in good faith, but it's a thin line," Murerwa
said without elaborating.

Murerwa said government had taken measures to address the RBZ's
dishing out of funds without going through treasury and at the moment that
had been reduced.

Asked by MDC MP Abdenico Bhebhe why police had "waylaid people
who wanted to deposit their money" by confiscating it, Murerwa said that
question could best be answered by Gono but said he supported the need to
contain the illegal movement of money.

Murerwa said in carrying out searches for cash police had caused
"some inconveniencies that were not intended".

Chief Bidi Ndiweni of Matabeleland South told Murerwa that
although August 21 was the deadline for the phasing out of the old bearer
cheques, "there is a hell lot of money which is still out there".


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Mkapa snubs Mugabe

Zim Independent

Dumisani Muleya

FORMER Tanzanian president Benjamin Mkapa turned down a
mediation role to resolve the so-called bilateral dispute between Britain
and Zimbabwe, contrary to President Robert Mugabe's claims that he had
agreed to perform the task, it has now emerged.

Senior diplomats said yesterday this could well mean Mugabe and
United Nations secretary-general Kofi Annan misled the world on the Mkapa
issue, although Annan reportedly relied on Mugabe's briefing.

However, sources said Mkapa stands ready to bring a retirement
package to Mugabe now if the international community comes up with a serious
offer.

Sources said although Mkapa was approached, he declined the
role. He cited two reasons.

"First, he is too busy with many things, including the
restructuring of his political party in Tanzania and various other
international commitments," a senior diplomat said.

"Second, he would not be considered a neutral facilitator,
especially by the British."

Diplomatic sources said Mkapa told Sadc colleagues that he had
long believed that the international community, and the British in
particular, had not played fair with Mugabe because "they talk about
democracy and human rights in Zimbabwe, but this is just a smokescreen for a
policy of regime change".

"Mkapa thinks all the international community has offered Mugabe
so far are sanctions and isolation," a diplomat close to the talks said. "He
just wants constructive engagement based on a realistic approach that will
be acceptable to Mugabe, Zimbabweans and the international community. He
thinks a balance can be achieved."


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Army splashes forex on cars, jets

Zim Independent

THE Zimbabwe Defence Forces is splashing millions of United
States dollars on 12 fighter jets, 220 luxury vehicles and spare parts even
though it has been inactive in the first half of the year.

The latest acquisitions, which include already delivered six K-8
fighter jets, come against a backdrop of the army battling to meet its
Chinese contractual obligations. The army also needs nearly $1,2 billion (in
new currency) to fund other operations.

Appearing before the parliamentary committee on Defence and Home
Affairs, Defence permanent secretary Trust Maphosa, accompanied by Zimbabwe
Defence Forces commander General Constantine Chiwenga and Airforce chief,
Air Marshal Perence Shiri, said the Reserve Bank of Zimbabwe had given the
ministry US$8,6 million to buy jets and cars.

According to manufacturers of the K-8 fighter - developed by
China and Pakistan - a new K-8 jet costs US$20 million. A list presented by
Maphosa indicates that the army intends to purchase 220 vehicles that
include 10 Prados, 65 Mazda Familia sedans, three Mercedes Benz E200 and two
E 280 saloons, five rigid buses, and 105 Mazda B1800 pick-up vehicles.

"We have managed to buy 127 staff cars in the Mazda range with
57 of them having been delivered. We managed to pay some of the foreign
currency to Willowvale Mazda Motor Industries," Maphosa said.

Figures supplied by car dealers put the cost of the vehicles at
above US$3 million. They put the cost of a single Toyota VX Prado at US$56
000, a Mazda B25 000 twin-cab at US$17 456, a B25 single cab at US$10 700,
and a Mazda Familia sedan at US$12 000. The RBZ allocated about US$1, 3
million for spare parts.

Maphosa said the RBZ had released US$4,7 million for aircraft,
US$2 668 264 for spare parts and US$1,3 million for vehicles.

"We are grateful to the RBZ governor who provided US$2 668 264
for the procurement of aircraft spares. Regular maintenance of weapons
systems is being undertaken," Maphosa said.

Doling out money for these purchases belies the commonplace
shortage of fuel for commerce and industry due to a foreign currency crunch.

"From January to May nothing was happening. The army was not
active. We had money for salaries and rations only," Maphosa said. - Staff
Writer.


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Mutasa, Zvinavashe clash over farmers' compensation

Zim Independent

Clemence Manyukwe

NATIONAL Security minister Didymus Mutasa and former army
commander Vitalis Zvinavashe on Wednesday clashed over compensation for
white farmers dispossessed during the fast-track land reform programme.

Mutasa, now responsible for land reform, was appearing before
the parliamentary portfolio committee on Lands and Agriculture of which
Zvinavashe, a Zanu PF Gutu senator, is a member.

Zvinavashe said A2 farmers and not taxpayers should compensate
white farmers for improvements and movable assets on the farms. Mutasa
rejected the suggestion, saying the country's laws spelt out that government
should pay the compensation. He said farmers should concentrate on farming
activities only.

"The politicians are refusing to pay," he said. "That land was
simply taken from us through conquest. It belongs to all of us. The farmers
should concentrate only on farming activities."

Mutasa's response apparently angered Zvinavashe who said A2
farmers should pay because when they applied for land they indicated that
they had the financial resources.

"Let's be honest with one another. Someone was saying I have the
capacity and now we say let government pay for what he benefited from. It is
not fair," Zvinavashe said.

"There is no need to burden the government, which is the
taxpayer."

After some further altercation, Zvinavashe told Mutasa: "There
is no answer today. Go and look into it."

Government three months ago started to compensate dispossessed
farmers using taxpayers' monies. The farmers have however said the amounts
being offered by government are insignificant compared to the losses
suffered.

The issue of compensation also came under the spotlight on
Monday during a Budget and Finance Portfolio Committee meeting where Finance
minister Herbert Murerwa appeared.

The ruling party's Chivi South legislator Charles Majange told
Murerwa that he felt guilty about taxpayers being made to pay for
improvements on his farm.

Said Majange: "With regards to the compensation of the white
farmer the ordinary taxpayer is paying for my farm. I feel guilty about it.
Do you minister?"

Murerwa said this was going to be rationalised through leases.
He added that government had taken a position that the issue of payment was
not for the individual but for the government.

An official from the Commercial Farmers Union Kudakwashe Ndoro
told the same hearing that failure by government to pay compensation would
affect investment.


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Officers sue Chinamasa over transport allowances

Zim Independent

Clemence Manyukwe

FIFTY-FIVE law officers with the Attorney-General's office have
sued Justice minister Patrick Chinamasa seeking the reinstatement of their
transport allowances which were abruptly terminated last month.

In an urgent chamber application filed through their lawyers,
Mtetwa & Nyambirai, the law officers also cited as respondents Justice
ministry permanent secretary, David Mangota, Labour minister Nicholas Goche,
Public Service Commission chairperson Mariyawanda Nzuwa, Finance minister
Herbert Murerwa and manager of the Salary Service Bureau.

The AG staffers said the allowances were removed from their
salaries without notice in July and were not included in their August
salaries.

They added that a directive to freeze transport allowances
issued by Nzuwa's secretary had no legal basis and was based on a false
premise.

The allowances were terminated on the basis that there was a bus
to ferry the law officers to work and that chief law officers had been
issued with cars. The applicants dispute this.

"The correct facts are as follows," they say, "No chief law
officers have been allocated motor vehicles as claimed by second respondent
(Mangota)."

"There is no 100-seater bus for the exclusive use of employees
in the Attorney-General's department," said one of the officers, Mary
Maunga, in her affidavit.

She added that there was a 60-seater bus which services
south-western suburbs only leaving law officers in the eastern and northern
suburbs with no transport.

"The 60-seater bus is used by all Ministry of Justice employees
who are on that route, including magistrates and it is difficult to
understand why only the applicants are being penalised. The bus is not, in
any event, available on a daily basis," she said.


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Govt rejects tents, settles for plastics

Zim Independent

Augustine Mukaro/ Bridget Sibanda

IN a move that exposes shortcomings in Operation Garikai,
government has accepted a United Nations offer to provide temporary plastic
shelter and aid to over 300 000 people displaced under the controversial
Operation Murambatsvina.

Last year government turned down a US$30 million UN appeal to
provide temporary shelter to victims worst affected by the slum clearance
blitz. The UN was forced to shelve the programme after government raised
objections that it "would not accept its people living in tents".

Government also rejected the appeal on the basis that the number
of people affected by its controversial demolition campaign had been
inflated while the reconstruction phase under Operation Garikai had been
downplayed.

A year down the line, with Operation Garikai failing to make an
impact on the accommodation of Murambatsvina victims, government has been
forced to swallow its pride and accept temporary shelter.

A tour of the holding camps at Hopley and Hatcliffe in the past
week revealed that temporary shelters had mushroomed where permanent
government structures should have been.

These consist of a 12 square-metre room of tarpaulin plastic at
the sides and metal sheeting at the top anchored on treated gumpoles, 1,5
metres high. The material is tear-resistant, non-flammable and sky-blue in
colour. Unicef is providing septic tanks as toilets to the residents.

Justin MacDermott, a senior programme officer with the UN's
International Organisation for Migration, said humanitarian organisations
started building temporary shelters at Hopley Farm and Hatcliffe in March.
The projects would cost close to US$40 million, he said.

"As a humanitarian organisation we source funds to assist
wherever people have suffered pain, poverty, degradation or lost hope by
providing assistance, guidance, comfort and moral support," MacDermott told
the Zimbabwe Independent in an interview on Tuesday.

"We do not have to ask for permission from government to assist
its people who are living in shacks after being affected by Operation
Murambatsvina because Zimbabwe is a UN member state."

An impasse developed between government and the UN, with Harare
insisting that the number of people affected by Operation Murambatsvina had
been inflated to discredit government.

"We did not sign an agreement with government for us to build
these temporary shelters because we are providing assistance to those who
are in need. Besides it's only a temporary measure to help people who are
suffering," MacDermott said.

"About 1 300 families have already benefited at Hopley and
Hatcliffe camps."

MacDermott said his organisation expected more funding from
donors to cover about 500 units since many families were still living in
shacks and the rainy season was fast approaching.

"This is a beneficiary-driven project under which we provide the
material, while the beneficiaries build their shelters with the assistance
of our builders," he said.

In the flash appeal, the UN had estimated that about 700 000
people, roughly 18% of the country's population, was affected by the
evictions and the crackdown on informal businesses in May last year.

Government claimed that only around 200 000 people were
affected. Action Aid, one of the non-governmental organisations working in
the country, estimated the displaced people to be not less than 1,5 million.

Humanitarian organisations assisting the victims said although
it was difficult to quantify the damage in monetary terms, major losses were
incurred across virtually all sectors of the economy.


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Dande dismisses VP Mujuru links

Zim Independent

DANDE Capital Holdings, a financial advisory services company,
has distanced itself from Vice-President Joice Mujuru after its directors'
controversial trip with a government delegation to China in June.

This comes after claims that Mujuru - whose daughter works for
the firm - might have an interest in the diversified company which signed
several business deals during her official visit to Beijing.

Sources said Mujuru's visit to China had become part of the
ruling Zanu PF's intensifying power struggle after a rival camp in the party
led by bigwig Emmerson Mnangagwa compiled a dossier in a bid to expose what
it believed was an abuse of office by her to support businesses she had an
interest in.

The Mujuru camp, led by retired army commander General Solomon
Mujuru, husband of the vice-president, was said to be banking on a report on
Zanu PF companies compiled by Kudenga & Co chartered accountants to fix
Mnangagwa's faction for alleged corruption.

However, Dande CEO Evison Musanjeya, said this week Mujuru was
not involved in the company either as a shareholder or in any other
capacity. Listed as Dande shareholders are David Butau, Zanu PF MP for
Guruve North, Musanjeya, Wilfred Hlanguyo and Decent Chitsungo.

Musanjeya said Mujuru's only association with Dande was through
her proximity of interests as an MP for the area where the company derived
its name and operates.

He said no one among the shareholders was related to Mujuru
although Butau shared the same totem with her.

Musanjeya said Mujuru's daughter was employed by the company,
not because the vice-president had an interest in it, but as an
acknowledgement of Mujuru's support for their business efforts.

"She (Mujuru) has no interest at all in the company," Musanjeya
said. "But she has acknowledged and appreciated what we have been doing on
the ground in terms of our businesses. We have only been working with her as
a senior politician from the area on chicken projects to help the people."

Dande, which has seven subsidiaries, runs Tsakare Chickens
involved in poultry production and marketing. It supplies the local market
but has a long-term plan to supply the export market, especially South
Africa, when its production reaches 1 200 tonnes of dressed chickens per
quarter.

Dande also owns Ele Resources, which focuses on mining,
Cynthesis Agriculture, Cynthesis Cotton, Timbsbury Timbers, Heldnet
Enterprises, and Telequip.

Musanjeya said Dande directors went to China with Mujuru on
their own means and had in any case been there before.

He said they joined the government delegation to take advantage
of possible business opportunities that might have arisen during the trip.

During the China visit, Dande signed a Memorandum of
Understanding with China National Construction and Agricultural Machinery
Import and Export Co and agreed to establish a chrome mine in the Dande
area, while Ele Resources signed a deal to launch coal mining and thermal
power projects in Dande. - Staff writer.


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Media groups slam Communications Bill

Zim Independent

Ray Matikinye

THE Media Alliance of Zimbabwe (MAZ), a group of media
organisations, together with the Zimbabwe National Editors Forum (Zinef)
have said the Interception of Communications Bill 2006 is intrusive and has
no place in a democratic society.

In a submission to the Parliamentary Legal Committee, the MAZ
and Zinef said the Bill impinges on individual freedoms and liberties and is
therefore unconstitutional.

"The Bill seeks to discard the fundamental rights and freedoms
or civil liberties of ordinary citizens, including the right to free
communication," the media groups' submission says.

The proposed legislation is seen as part of a raft of existing
measures that have severely undermined freedom of expression and information
in Zimbabwe such as Posa and Aippa.

MAZ comprises the Zimbabwe Union of Journalists, the Media
Monitoring Project Zimbabwe, and the Media Institute of Southern Africa
(Misa-Zimbabwe), while Zinef groups editors in the independent media.

In their submission, the media bodies contest the
constitutionality of sections of the Bill saying they replicate provisions
of the Postal and Telecommunications Act that were struck down as
unconstitutional by the Supreme Court in 2003.

"It follows that this Bill is unconstitutional in as far as it
violates Section 20 of the Constitution (which safeguards) universally
accepted principles of freedom of expression, freedom of information and
independence of the media from undue state interference," the MAZ/Zinef
document submitted, to PLC chair Professor Welshman Ncube this week, says.

The media groups said the "measures proposed in the legislation
are arbitrary, unfair and disproportionate to the objective of containing
serious crime". The Bill claims to be part of measures to combat crime.

"There clearly is no fresh mischief to be combated in Zimbabwe.
Interference with the communications of its citizens is, therefore, patently
unnecessary and unreasonable," they said.

The Bill makes no provision for judicial supervision and
provides for judicial intervention after the right has been violated and a
loss has occurred, the submission says. Provisions allowing the minister to
grant authorisation to intercept information is tantamount to usurpation of
judicial authority by the executive in violation of the concept of
separation of powers and the checks and balances which form part of that
concept, it says.

To compound the issue, there is no provision for review by any
other democratically established arm of the state. The traditional
safeguards against the negative effects of a search and the traditional
protection of privacy have not been incorporated into the legislation.

The submission notes that the Bill reincarnates provisions in
the Postal and Telecommunications Act struck down by the Supreme Court by
merely shifting responsibility from the President to the Chief of Defence
Intelligence or his or her nominee; the Director-General of the President's
department responsible for national security or his or her nominee; the
Commissioner of the Zimbabwe Republic Police or his or her nominee; and the
Commissioner-General of the Zimbabwe Revenue Authority or his or her
nominee.

The submission says the situation is worsened by the fact that
there is already in place legislation such as the Public Order and Security
Act, Access to Information and Protection of Privacy Act and others that
severely restrict democratic space.

"Journalists and other human rights defenders have been
arrested, newspapers have been closed and private property has been acquired
in circumstances which violate human rights," the submission says.


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Staff exodus hits AG's office

Zim Independent

Clemence Manyukwe

THE Attorney-General (AG)'s office is reeling from a massive
exodus of experienced prosecutors with the latest to leave being the
Director of Public Prosecutions, Loice Matanda-Moyo, and four others.

The Zimbabwe Independent was told that Matanda-Moyo would soon
be appointed President of the Labour Court.

Sources at the AG's office said the loss of Matanda-Moyo was
"very sad" as she had rendered invaluable service in representing government
in civil matters and as head of public prosecutions.

Her departure follows the appointment of four senior law
officers as magistrates in the past two months.

The four are former Chief Law Officers Steven Musona and Morgan
Nemadire and Law Officers Never Katiyo and Tapuwa Godzi.

Other prosecutors that are expected to leave the AG's office are
Chief Law Officer Joseph Jagada, Andrew Kumire, Jonathan Murombedzi and Mary
Maunga.

Efforts to get comment from the AG were fruitless as his
secretary repeatedly said he was in a meeting.

Sources said the departure of experienced staff was having a
negative effect on the prosecution of high-profile cases where the backlog
was already huge. Officers who have left the AG's office said relations
between prosecutors and the AG, Sobusa Gula-Ndebele, had deteriorated due to
"administrative differences".

"At this rate, we are likely to see more law officers leaving
the AG's office," said one prosecutor.

Meanwhile, National Security minister Didymus Mutasa has given a
week's notice to sue Rusape magistrate Loice Mukunyadzi for $100 million for
utterances she made in court concerning his alleged intimidation of
magistrates.

"Our client advises that at no time did he ever threaten you or
any other magistrate," said Mutasa through his lawyers, Magoge & Associates.

Mutasa has also threatened to sue Manicaland area prosecutor
Levison Chikafu and the Independent - the former for saying the minister's
wings needed to be clipped and the latter for reporting the utterances which
were made in court.


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Single doctor for 4 million in Mat South

Zim Independent

Lesley Moyo

MATABELELAND South is facing a critical shortage of doctors that
has forced Gwanda provincial hospital, servicing a region of four million
people, to operate without a single doctor.

The medical superintendent for Gwanda hospital, Dr Gordon Bango,
is having to double up as doctor and administrator due to a critical staff
shortage.

Bango performs the duties of 12 doctors who are supposed to
service the whole province.

Investigations by the Zimbabwe Independent revealed that the
province needs 12 doctors and nine specialists, but was relying on Bango.

Critically ill patients needing specialist attention are
referred to major hospitals in Bulawayo, about 200km from the Matabeleland
South capital.

Gwanda provincial hospital is supposed to have a complement of
nine specialist doctors.

The critical manpower shortage has created long queues at the
hospitals as patients wait to be attended to. Many are turned away as Bango
cannot cope with the huge number of people seeking treatment.

Health and Child Welfare deputy minister, Dr Edwin Muguti
confirmed the shortage of doctors at the hospital when contacted for comment
last week.

He said the situation at Gwanda provincial hospital mirrored a
nationwide crisis faced by government health institutions.

"The shortage of doctors is being felt countrywide and efforts
are under way to bring in doctors. We recently signed an agreement with
Korea and they will be providing us with doctors," Muguti said.

"We have existing relations with Cuba and the Democratic
Republic of Congo (DRC) who supply us with doctors."

An expatriate doctor from the DRC who used to assist Bango left
last month after the expiry of his contract with the government.

Muguti said his ministry had put in place measures to alleviate
the massive brain-drain that is affecting service delivery in the country.

"The ministry has improved conditions of service for doctors in
the country by giving them housing, transport and rural allowances," he
said. "We will continue training more doctors."

The collapsing health delivery sector in Zimbabwe is
characterised by shortages of almost all essential medicines and flight of
trained medical staff among other problems.


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Operation Maguta suffers setback

Zim Independent

Augustine Mukaro

GOVERNMENT'S efforts to boost agricultural production through
Operation Maguta are failing as the area put under winter wheat over the
past five seasons continues to shrink.

This has caused serious wheat shortfalls.

In the current cropping season, only an estimated 50 000
hectares, instead of more than 85 000 hectares that are normally put under
irrigated winter wheat, were planted due to continued uncertainty in the
agricultural sector, limited seeds and shortage of fertilisers.

Information to hand shows that the few remaining white
commercial farmers have planted around 10 000 hectares, newly-resettled
farmers 20 000 hectares and the remainder by the army under Operation
Maguta.

Commercial Farmers Union crops section spokesman, George
Hutchison, said his members planted between 10 000 and 15 000 hectares, and
an average yield of four tonnes from each hectare were expected.

Zimbabwe Commercial Farmers Union (ZCFU) past president, Thomas
Nherera, said an estimated 60 000 hectares were put under winter crop this
year and the harvest would be more than 200 000 tonnes.

"Too low temperatures have damaged a crop which was at
tasselling stage in the Midlands area," Nherera said. "However, the low
temperatures were good for the late planted crop."

Zimbabwe requires 400 000 tonnes of wheat annually plus 80 000
tonnes of hard wheat to mix with the local product. Grisling wheat has
always been imported.

Agricultural experts said Zimbabwe would harvest about 135 000
tonnes of wheat, up from last year's 120 000 tonnes. This was however still
short as it would only be enough to cover close to 34% of the country's
national requirement.

They said lack of irrigation facilities following vandalism and
theft of the equipment over the past five years of the chaotic land reform
programme had drastically reduced the area that could be irrigated.

Winter wheat is an all-out irrigation crop, so under the
prevailing conditions where there is a critical shortage of equipment,
yields would be reduced, the experts said.

Under optimum conditions with use of state-of-the-art irrigation
facilities, six tonnes of wheat can be produced from a hectare.


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CFX pulls shocker, appoints POSB underwriter

Zim Independent

Shakeman Mugari

CFX Financial Services this week pulled a shocker in the banking
sector after it appointed the Peoples Own Savings Bank (POSB) as the
underwriter to its rights issue opening early next month.

This comes soon after businessdigest revealed last week that the
financial institution had revised upwards the amount it intended to raise
through the rights issue, from $1 billion to $1,8 billion.

The mega-rights issue is likely to be too expensive for many of
the banking institution's fringe shareholders, including government.

The move effectively means that the acquisitive Zimre Holdings,
which had been tipped to underwrite the issue under an arrangement which
would have given it a foothold in CFX, has fallen by the wayside.

POSB, itself a cash-rich institution, now stands a chance to
pick up shares in the bank that would not have been taken up
by respective shareholders during the rights issue.

This would be the first time that the 102-year old POSB, which
is wholly government-owned, has underwritten any rights issue in the history
of the local bourse.

CFX Bank managing Simon Monckton yesterday said they had settled
for POSB to fully underwrite the rights issue after talking to several
potential underwriters.

"We talked to a lot of people (companies) but eventually we
settled for POSB," Monckton said.

POSB is expected to snap up shares not taken up by shareholders
during the rights issue. Government owns 15,9% in CFX while 39% of the
shareholding in CFX is in the hands of depositors.

Businessdigest estimates that the $1,8 billion rights issue
could be undersubscribed by at least 20%.

The cash-strapped government, which holds its stake in CFX
through Allied Financial Services, seems unlikely to follow its rights.

Government is battling to raise cash to recapitalise other
financial institutions in which it has significant stakes.

However, government is expected to maintain an overbearing
influence on the group through its ownership of the POSB.

POSB, formerly the Post Office Savings Bank, was established in
December 1904 and commenced its operations through the Post Office
infrastructure network.

Since its creation, the bank operated as a statutory fund with
no legal entity status.

In 1965 the Post Office Savings Bank Act (Chapter 249) was
promulgated providing for the administration of the savings bank by the Post
and Telecommunications Corporation on an agency basis.

This position remained until April 1 2001, when a new Act, the
People's Own Savings Bank of Zimbabwe Act (Chapter 24:22), was promulgated,
establishing the bank as a corporate body thereby effectively de-linking it
from the Post and Telecommunications Corporation which has been unbundled
into three commercial operations.

Indications are that the majority of CFX depositors, whose
ownership of CFX shares was made through a conversion of their deposits into
shares earlier this year, were also unlikely to follow their rights.

This means POSB will mop up all CFX shares renounced by
shareholders during the rights issue, giving it a foothold in the banking
institution.


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Turnall's volumes catching asbestosis

Zim Independent

By Admire Mavolwane

IT used to be only death and taxes that were inevitable. Now, of
course, there is inflation and currency change.

The latest cosmetic surgery that the economy has gone through is
a liposuction to remove three zeros from the Zimbabwean currency. This was
achieved through the introduction of a new "family", or is it "brood", of
bearer cheques.

Apart from the new currency, everything else remains the same
and now that the 21 days of excitement are over it is back to normal
business. It is still confusing as one has to constantly qualify whether one
is speaking in "old", or "new" or "re-stated currency" - terms which, in our
view, are more appropriate than the official term, "re-valued".

Welcome as it is, the bad news is that currency reforms are
unfortunately always symptomatic of the entrenchment of hyperinflationary
conditions.

The economic history of Germany and the former Yugoslavia, for
example, bears witness to this assertion.

According to the Reserve Bank's Weekly Economic Highlights - the
latest one available on the website being as at the of June 30 - the total
amount of currency in circulation amounted to $21,7 trillion, compared with
$12,8 trillion in January this year.

During the first four months of the year currency in circulation
had been growing by approximately $3 trillion a month. Extrapolating that
for the period to June, we would have expected the currency in circulation
to be around $27 trillion.

However, the numbers $44 trillion or $41 trillion, have come up
a number of times as being the total amount of currency in circulation as at
the end of June.

How the total value of the bearer cheques in circulation could
have doubled in two months remains something of a mystery that is yet to be
explained.

One conjecture, though, is that during that period the exchange
rate started to bolt on the much maligned parallel market, such that the
number of "bearers" needed to consummate these "foreign" transactions
doubled.

Whether the above explanation is the true value of "X" in the
equation or not will only be answered in the fullness of time. Otherwise, it
is for now an assumption that we just have to be satisfied - or
unsatisfied - with according to our preferences.

The June reporting season is now in full swing amid the
confusion of whether the results should be in "new" or "old" currency.
Perhaps the Zimbabwe Stock Exchange should have come up with a firm position
as to which currency to use for the publication of results.

In our view all financials as at June 30 2006 should be in the
"old" currency and the change over to the 'new' currency should be treated
as a post balance sheet event as it were.

TA Holdings was quick to embrace the change and produced its
results for the six months to June 2006 in the new currency. The numbers
more than underlined the fact that the investment holding company is now
basically an investment income play.

Revenue inflows, consisting of premiums from the short term
insurance interests and income from the hotels, grew by 1 025% to $2,5
billion, with $1,2 billion being the contribution of the foreign insurance
interests.

At trading levels, the insurance concerns continue to
disappoint, chalking up underwriting losses of $105 million locally and $24
million in the foreign operations. As at year end the foreign insurance
business, mainly Botswana Insurance Company Limited, realised underwriting
profits while Zimnat Lion has continued its perennially disappointing
performance in this respect.

After the merger with AIG Zimbabwe, an entity renowned for its
profitability at this level, it had been hoped that the latter's skills
would rub off on Zimnat Lion, but this was not to be. The hotels continue to
do well, possibly under even more difficult conditions, maintaining
occupancy levels at 40% and achieving a trading profit of $73 million.

Investment income, the mainstay of the group, increased by 1
919% to $1,3 billion thus ensuring that after inflows from associates of
$188 million and finance income of $9 million a respectable twenty two fold
increase in profits before tax ($1,4 million) was achieved.

Attributable earnings of $945 million were realised after taking
out the provisions for tax and outside shareholders' interests. This equates
to a return of 2 788% over the comparative period.

Turnall's results (in old currency) for the same period show
that the forecast real economic growth will not be on the back of the
manufacturing sector. Volume sales declined by 46% when compared with the
prior period of 2005 and capacity utilisation stood at 55%.

Against this background turnover growth at 703% to $1,3 trillion
was understandably sluggish. Export volumes, however, grew by 13%, mainly to
South Africa and Botswana and their contribution to sales increased to 10%,
up from 4% in the previous period.

An improvement in operating margins from 39% to 54% saw the
corresponding profits increasing by 1 149% to $737 billion. Cash flows
remained positive with inflows from operations amounting to $738 billion.
This is notwithstanding the tightening of credit terms by suppliers.

As a result of the investment of surplus cash, net interest
income worth $66 billion was achieved which went a long way to boosting the
bottom line. In the final analysis attributable earnings of $578 billion
were realised, up 1 212% on the prior period.

We expect all the manufacturers still to release their results
to be singing from the same hymn book in terms of volumes and capacity
utilisation. At the end of it all, one is forced to ask where the economic
growth of between 0,5% and 2% officially expected this year will finally
emanate from.


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Talks over Zisco collapse

Zim Independent

Paul Nyakazeya

TALKS between government and representatives of Indian firm
Global Steel Holdings failed to make a breakthrough last week, with sources
indicating that the Indian firm had decided to terminate a deal with the
Zimbabwe Iron and Steel Company (Zisco).

Official media reports suggested this week that the deal between
Zisco and Global steel was still alive, dismissing businessdigest's report
last week that the deal had collapsed.

However, sources indicated that Lalit Kumar Sehgal, who had been
seconded by Global Steel to run Zisco as its CEO, left the country last
Friday after government failed to table an acceptable proposal for the
Indian firm to convince it to remain at Zisco under a US$400 million deal to
revive the ailing steel maker.

Sources this week said Sehgal and other officials from Global
Steel left the country on Friday for New Delhi, India, in frustration after
their plans to revive the loss-making parastatal had been thwarted by
government bureaucracy and interference.

Some government officials had reportedly solicited for a share
of the US$400 million Global Steel wanted to inject into Zisco.

Permanent secretary for Industry and International Trade,
Retired Colonel Christian Katsande, could however not be reached for
comment.

Sehgal was seconded by his company to become CEO of Zisco in
April under a management contract that went with the US$400 million cash
injection.

He was replaced by Alois Gowo two weeks ago.

Prior to his appointment Gowo was Zisco's projects and
development manager.

Businessdigest understands that Sehgal and other senior
officials from Global Steel informed the ministry of their desire to
terminate the contract during the first week of August.

The Zisco board met on Thursday last week to discuss the
collapsed deal with Global Steel and the parastatal's turnaround strategy.

It was not immediately clear what the board had resolved to do
following the collapse of the deal. Zisco representatives are expected to
meet government officials to determine the course of action required to
salvage the company from a deepening crisis.

Global Steel had entered into a deal with the Zimbabwe
government to take over management of Zisco for 20 years.

The company was in turn expected to inject US$400 million into
Zisco.

Global Steel manages more than 14 metric tonnes of steel-making
capacities in five countries in Europe, Africa and the Asia-Pacific.

The Indian company was roped in by government after previous
negotiations between Zisco and Shougang International Trade and Engineering
Corporation of China over a possible US$200 million deal collapsed because
government declined to cede a controlling share of the company to the
Chinese firm.


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Production to decline as farmers dump tobacco

Zim Independent

Paul Nyakazeya

TOBACCO production is expected to decline because of a drastic
reduction in hectarage by farmers fleeing high costs associated with growing
the crop, the Zimbabwe Association of Tobacco Growers (ZATG) president,
Julius Ngorima, said this week.

Ngorima told businessdigest that while firm prices had seen the
country's foreign currency earnings from tobacco surpass last year's
earnings by 21,98% despite a decline in crop deliveries, a further decline
this year was likely to hurt receipts.

"Production is likely to decline next year as most farmers have
reduced their hectarage due to the continuous rise of input prices," Ngorima
said.

He said farmers who had already started preparations for next
year's crop had indicated to the association that they were contemplating
trying other crops as it was no longer viable to concentrate on tobacco
alone.

Statistics released by the Tobacco Industry and Marketing Board
(TIMB) show that a total of 46,4 million kg of tobacco worth US$93,8 million
had been sold by Friday last week, compared with 49,4 million kg worth
US$76,9 million sold during the same period last year.

About 9,3 million kg was sold at the Tobacco Sales Floor, six
million at Burley Marketers Zimbabwe and 4,9 million at the Zimbabwe Tobacco
Auction Centre.

About 29,2 million kg was sold through the contract system while
farmers were paid $11,2 billion under the early delivery bonus scheme

TIMB said the selling season would end on August 30.

"While as an association we are delighted that foreign currency
earnings increased this year, we are worried by the decline in production
which is projected to continue next year," said Ngorima.

Ngorima attributed the increase in earnings to firming prices
which characterised the auction flow since July.

The golden leaf fetched an average price of US$2,01 cents per kg
this year compared to US$1,55 cents last year.

An estimated crop of 50 million kg is expected to go under the
hammer this year, compared with 70 million kg sold last year.

Out of the 46,4 million kg sold so far, 20,8 million kg were
sold through the auction system while 25,6 million kg were sold through the
contract system.

"The golden leaf sold through the auction fetched an average
price of US$1,91 cents per kg, less than US$2,10 cents that prevailed for
sales done through the contract system," TIMB said.

The wastage rate for auction sales at 12,05% was said to be much
higher than 3,53% for contract sales.

Tobacco sales have so far recorded an 8,23% wastage rate for
2006 compared to 8,46% last year.


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Dairibord turnover down 5%

Zim Independent

Eric Chiriga

DAIRIBORD Holdings registered a turnover of $7,5 billion in the
half year ended June 2006, down 5% from turnover achieved in the comparable
period previous year.

Out of the $7,5 billion turnover, $374,4 million came from
exports, whose sales volume surged 42% during the period under review.

However, operating profit increased by 9% to $849,4 million
while attributable earnings, after monetary losses, decreased to a loss of
$18,3 million.

Total sales volumes slumped by 24% compared to the same period
last year. Volume of raw milk supply went down 13% despite an increase in
producer prices by more than the inflation rate.

"The group's financial results were satisfactory under a very
difficult economic and business environment characterised by shortages of
inputs as well as very much subdued demand," the group's board said in a
statement accompanying financial results.

The board said the cost of raw materials, utilities and spares
increased at a rate far higher than that of inflation.

"The contribution of the subsidiary Lyons was significantly
reduced as it was the worst affected by depressed demand," the board added.

Dairibord is the holding company of Lyons and NFB Logistics.
Lyons' turnover increased by 928% to $4,9 billion while profit from
operations increased by 1 445% to $1,1 billion.

"The exacerbating hyperinflationary and monetary environment
imposed an increased demand on working capital requirements which resulted
in difficulties being faced with trade debtors."

Dairibord was incorporated in July 1994 following the legal
status change under the government's Economic Structural Adjustment
Programme of the Dairy Marketing Board  from a parastatal to a commercial
company.

It became the first state-owned company to privatise in July
1997.

Under its strategic expansion programme, Dairibord acquired 60%
equity in Dairibord Malawi in January 1998 and acquired Lyons Zimbabwe in
April 2001.

In December 2002, Dairibord acquired 40% shareholding in
Charhons. Lyons continues to operate as an independent subsidiary of
Dairibord.

Dairibord is a major player on the Sadc and Comesa markets with
exports making up approximately 8% of the company's total sales revenue.

Its major export markets include Botswana, Zambia, Tanzania and
Malawi.


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Zimbabwe political actors mere pawns

Zim Independent

By Alex Magaisa

RECENT events in the Middle East have been horrendous. With
global attention currently focused on the Middle East one would hope that
the major political actors in countries such as Zimbabwe would take time to
pause and consider their own place in the hierarchy of priorities of the
so-called "international community".

Throughout the on-going crisis in Zimbabwe, political actors,
particularly in the opposition, have often referred to the "international
community", without actually ever defining the nature and character of this
community.

That the so-called international community has failed so far to
take any specific decisive action in resolving the Zimbabwe question must
point some harsh truths to the main political actors and possibly force them
to appreciate that, ultimately, only Zimbabweans have the responsibility and
indeed the capacity to resolve their differences and get on with business.
There is never a perfect solution, only one that allows the political,
social and economic wheels to start moving again with  minimum resistance.

What exactly do they mean when they speak of the "international
community"?

In truth what is often referred to as the international
community is an amorphous body of nations, often divided and operating
without a single specific voice at all times. Within the Zimbabwean
political context, as in most others, the international community means
different things to different people depending on the platform of each
individual or political actor.

Taking a rather more simplistic categorisation often used in
Zimbabwe, the world is still seen through a pair of lens - one lens
identifying the West and the other focusing on the East.

Going by the alliances and the image that has been built over
the years, it would appear that with slight variations between factions, to
the Movement for Democratic Change (MDC) and other opposition movements in
civil society the "international community" consists predominantly of the
West.

On the other hand, feeling ostracised by the West, Zanu PF has
deliberately constructed its world-view through the lens of the East.

When the MDC says the "international community" castigates what
is going on in Zimbabwe, Zanu PF finds solace in the silent and occasionally
influential support of its Eastern friends such as China. Archaic as it
might seem, that distinction between East and West in the post-Cold War
global environment remains fundamental, at least to the extent that
Zimbabwean expectations of the international community are concerned.

Zanu PF can always rely on the likes of China to block attempts
to bring the Zimbabwe issue within the context of the UN Security Council.

The sad fact is that Zimbabwean political actors do not seem to
realise that they are mere pawns in a game of the big boys. If there is one
thing that unites the divided community of nations, it is that each nation's
attitude, position and action in relation to any issue are motivated by
self-interest. It is not necessarily the interest of the people affected by
any specific situation that determines other nations' behaviour.

The Chinas of this world have a voracious appetite for resources
as do the West. It happens that they do not have all the resources.
Sometimes they are found in other countries. Some benefit from the stability
of those countries whilst others reap benefits from the chaos.

What is it then that we Zimbabweans do not see, that makes
almost all of us have so much faith in the goodwill and support of this
undefined body that we call the international community?

There are at least two possible factors that influence
Zimbabweans' attitude to what we call the "international community": either
we have a very high opinion of ourselves (superiority complex) or a serious
inferiority complex. Either way we have a serious problem that causes us, in
all sectors of the political divide, to be so gullible and expect to be
treated by others in some special way.

First, the superiority complex: for many years after
Independence Zimbabwe appeared to hold a lofty position at least among the
largely deteriorating nations of Africa. It is the same position that South
Africa holds today with great pride but events in Zimbabwe should be
educative.

Zimbabweans felt special almost to the point of looking down
upon neighbours that appeared to have got it wrong politically and
economically such as Zambia and Mozambique.

Zimbabweans felt and thought they were different, and worryingly
echoes of which I hear from some sections in South Africa. They even
wondered how other countries in Africa could let one man rule the country
for more that two decades. It was almost unimaginable.

This superiority complex may have remained with Zimbabweans, so
that when problems began to show, they turned largely to the international
community to assist in resolving the crisis. Zimbabwe attracted a large
amount of attention from other countries, especially in the West feeding
into the belief that Zimbabwe was special and different from other African
countries whose troubles may have been grave but received less coverage and
attention.

The media focus on Zimbabwe post-2000 was almost unprecedented,
more so than during the 1980s when the wanton and brutal massacre of people
in the provinces of Matabeleland and the Midlands had warranted such
coverage. Indeed, post-2000 even those Zimbabweans who had been largely
silent during those massacres became overnight converts to the cause of
human rights.

The differential treatment of the two episodes (the massacres of
the 1980s and the crisis of post-2000) by the so-called international
community tells its own story in relation to the primacy of interests in
determining its behaviour and reaction to issues.

In the case of the possible inferiority complex, there is a
school of thought which states that a person who habours an inferiority
complex is more likely to rest on his laurels and expect others to take the
lead. Such a person feels powerless and refuses to take responsibility for
his own fate. Instead, he leaves it to others whom he expects to feel sorry
for him.

The inferiority complex actually gives him comfort because he
doesn't have to take any responsibility and therefore takes no crucial
decisions. Applying this theory on a wider scale, one suspects that
Zimbabweans have developed a collective inferiority complex - that we are
victims, powerless and expect others to feel sorry for us and therefore to
take decisions and action on our behalf.

In terms of seeking attention and feeling special it makes
little difference, if any, whether a person has an inferiority or
superiority complex. Either way, there is a case of feeling special and
important - of refusing to take responsibility and appealing for attention.

Central to these dynamics of superiority/inferiority is an
inward-looking approach to the crisis affecting Zimbabwe which makes it
appear as if what is happening in Zimbabwe is unique and deserving of
special attention from every other nation that cares to listen.

There appears to be a gap in knowledge and awareness that what
Zimbabwe is going through is to many people outside Zimbabwe nothing out of
the ordinary within the African context.

There are some harsh truths that Zimbabweans will have to
acknowledge. Indeed, it seems that to many people across the world, the
behaviour of the Zimbabwe government is nothing out of the ordinary
considering the history of poor governance, oppression and abuse of power in
Africa.

The mention of Africa conjures images of fly-infested, naked
children surrounded by poverty and gun-toting youths used by corrupt
officials. Zimbabwe is simply travelling a well-trodden path. Not much
attention was paid to the decline in those other countries and not much was
done to halt it.

In each of those cases the people probably appealed to the
amorphous international community, with minimal results in the few cases
where perhaps there was full-blown war and interests of the "international
community" needed safeguarding. Why then do Zimbabweans seem to feel that
ours is a special case?

It is the same with Zimbabweans who are now in the diaspora. The
image of Zimbabwe that they have and want to preserve is the Zimbabwe they
left years ago, one that is long gone and distant. Even when they dream of
one day returning home, they never pause to consider that they are just
another instalment of Africans who have left the continent for good - a
similar instalment to those that have been leaving for decades from other
African countries.

They too haboured lofty dreams of returning home but they are
now great-grandparents in the diaspora. They too expected something to be
done for them by someone to enable them to return home one day.

Likewise the diaspora asks the familiar question: "Why can't
they do something for us?" - taking themselves out of the equation and
without accepting that it is in fact their own responsibility.

There is no doubt that there are human rights concerns in
Zimbabwe. This has been the central rallying point for international
sympathy and condemnation.

But sadly, even those working in this field seem oblivious to
the fact that the violation of human rights alone (without affecting the
interests of whoever is considered the "international community") is not
sufficient to push them to take any decisive action on their behalf.

The UN for example acknowledged the tragedy of Operation
Murambatsvina in 2005, but besides the occasional noises and condemnation,
nothing of substance has been done to address the problems. Again awareness
of events elsewhere and how nations react would help to focus attention on
the immediate and more sustainable strategies in Zimbabwe.

* Dr Alex Magaisa is a UK-based lawyer.


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Links with civil society necessary

Zim Independent

By Pedzisai Ruhanya

OPPOSITION MP Trudy Stevenson's views on what she calls
political incest among civil society organisations fail to appreciate the
role of civil society organisations, opposition political parties and other
pro-democracy forces in forcing a norm-violating government to abide by the
international regime of human rights and civilised state behaviour in a
crisis situation such as Zimbabwe.

In her contribution, "Civil society threatened by political
incest" (Zimbabwe Independent, August 18), I got the impression that
Stevenson was not happy with the cordial relations between most civil
society organisations with the main Movement for Democratic Change (MDC)
faction led by Morgan Tsvangirai. This seems so because it took Stevenson
five years to realise that opposition forces and civil society organisations
in Zimbabwe have been working together in a bid to foster democratic
compliance in Zimbabwe.

The issue of "incest" had not arisen up to now because she was
part of the united MDC but the situation should be changed according to her
because her faction does not have the support of critical civil society
partners. If this is not double standards then the honourable MP should
explain the source of her new-found disgust with this relationship she has
been party to for a long time before the October 12 2005 fallout of the MDC.

Moreso, Stevenson did not tell the reading public that she was
as of last year an active member of the Combined Harare Residents
Association (CHRA) while she was doubling as the MP for Harare North. At
some point last year CHRA used to hold its meetings at the offices of
Transparency International Zimbabwe in Harare which Stevenson attended
without fail. The problem has now arisen because according to her, the
structures of CHRA have office-bearers from the main MDC led by Tsvangirai.

It is therefore clear that Stevenson is not so much worried
about the so-called incest relationship but is disgusted by what appears to
be a ubiquitous presence of the other faction at the expense of the one that
she represents.

Instead of hiding under the cover of political incest, Stevenson
should legitimately and openly show her displeasure without misleading the
public into attempting to be an independent critic when its seems clear that
she is not happy with the failure of her faction to be recognised by some
critical civil society organisations and leaders.

However, for her benefit, there is nothing wrong with political
organisations and civil society groups working together to force a
dictatorship such as the one in Zimbabwe to stop abusing human rights and to
follow the democratic route in its governance of national affairs. Zimbabwe
is a member of various international treaties such as the International
Covenant on Civil and Political Rights and should abide by those norms
governing state behaviour towards its citizens.

It is a well-established norm in human rights discourse that
domestic advocacy networks such as Crisis in Zimbabwe Coalition, the
National Constitutional Assembly (NCA), CHRA, the Zimbabwe Lawyers for Human
Rights and opposition political groups, in what is known as the "boomerang"
pattern of influence, promote and protect human rights through internal and
international linkages in order to bring pressure on the norm-violating
regime to abide by its domestic and international obligations to respect
human rights and other fundamental civil and political liberties which
constitute the cornerstone of a democratic society.

In many troubled societies such as Zimbabwe and even during the
Rhodesian era, such a situation arises as a result of failure by the human
rights groups to effectively communicate with the authorities and then
resort to seeking assistance from their international partners to assist in
pressurising the norm-violating government to change its human rights
behaviour.

As Stevenson pointed out in her article, this scenario is not
new in Zimbabwe because, for instance, the Catholic Commission of Justice
and Peace in Zimbabwe and other organisations played this role in the 1970s
by mobilising domestic and international human rights networks to condemn
the genocidal government of Ian Smith against the people of Zimbabwe in
search of their independence.

What is important is to work together and address areas of
differences than concentrating on which faction of the MDC has the support
or not of civil society. If the majority of civil society organisations
differ with one faction, it is incumbent upon the parties concerned to look
at the source of the differences and clarify them than attempting to posture
while the country is burning as a result of the political and economic
policies of a bankrupt and corrupt Zanu PF administration.

National groups, non-governmental organisations and social
movements should link up with transnational networks and international
non-governmental organisations when they lobby and convince international
human rights organisations, regional and African donor institutions and some
powerful African countries such as South Africa and others to pressure the
Zimbabwean authorities to stop human rights abuses and to promote good
governance and democratic practices in the conduct of state affairs.

In order for these networks such as the NCA, Crisis Coalition,
the NGO Human Rights Forum and the Zimbabwe Congress of Trade Unions to be
able to sustain their moral authority over human rights abuses in Zimbabwe
and the observation of international norms, there is need for them to be
impartial or independent. The networks should be seen as not
self-interested. It is further suggested that the networks should not be
seen as interested in acquiring political power or as too linked to those in
political power.

For the record, neither of the two MDC feuding groups is in
power and there is no reason why they should not unite with civil society
partners to confront the Harare regime. In the event that either faction
assumes power, then the views of Stevenson should hold. There would be a
need to allow those who want to form the next government do so and those who
remain in civil society do so and independently make the government
accountable and destroy their linkages prior to the formation of the said
government.

Human rights academics have further suggested that the combined
efforts of advocacy networks and oppositional pro-democracy forces through
their activities put norm-violating states on the international agenda in
terms of moral consciousness awareness. They argue that in doing so, they
remind liberal states especially in the West of the moral identity as the
promoters of human rights.

This argument seems plausible to persuade norm-violating
governments to change their behaviour because in the majority of cases, the
Western liberal governments that believe in the promotion and protection of
civil and political liberties are providers of bilateral and multilateral
aid to some of the norm-violating governments such as Zimbabwe.

For economic survival especially the receipt of balance of
payment support, some of those countries responsible for violating human
rights can be restrained from doing so in order to preserve their economic
relations with both Western governments and aid agencies.

Civil society and oppositional pro-democracy forces in Zimbabwe
should not invest resources to fight each other but instead use methods that
have been used by other transnational networks to promote human rights
through such tactics as information politics, symbolic politics and leverage
and accountability politics.

These methods were successfully used in the Eastern Europe in
countries such as Poland and Czechoslovakia and in South American countries
like Chile while at home Smith can testify to the effectiveness of these
tactics. Across the Limpopo the former apartheid regime will confess how the
United Democratic Front - working together with their partners in Zimbabwe,
Zambia, Kenya and the international community - brought about democratic
rule in South Africa.

* Pedzisai Ruhanya is a Zimbabwean journalist studying in the
UK.


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Sadc confirms Zim a trouble spot

Zim Independent

Dumisani Muleya

PRESIDENT Robert Mugabe and his delegation's ill-fated trip to
the Southern African Development Community (Sadc) summit in Lesotho last
week confirmed Zimbabwe is now considered a trouble spot in the region, in
the same league as anachronistic states such as Swaziland.

The summit also showed clearly that Mugabe has lately lost
credibility and influence, not just in the eyes of his critics, but also
before those of hitherto supportive Sadc counterparts whom he always touted
as allies against hostile Western leaders.

Reports from Maseru, Lesotho's capital where the summit was
held, said Mugabe left in a huff on Friday after a special session on
Zimbabwe and Swaziland in which the two countries were described by Sadc
leaders as barriers to regional economic integration, investment and
progress.

Although Foreign minister Simbarashe Mumbengegwi and state media
journalists afterwards tried to do some damage-limitation to obscure Mugabe's
disastrous showing in Lesotho, remarks by his hosts revealed that Zimbabwe
and Swaziland, Africa's last remaining absolute monarchy, were viewed as
obstacles to economic progress in the region.

Despite Mumbengegwi's claims that Zimbabwe was not discussed,
Lesotho Prime Minister Pakalitha Mosisili said it was debated during a
special session on Friday which Mugabe did not see through to its
conclusion.

"The situation in that country is of concern to Sadc precisely
because Zimbabwe was the second strongest economy in the community and for
its economy to have declined to (these) levels is of major concern to us,"
Mosisili told a press conference at the close of the summit.

"We have been engaged with the leadership of Zimbabwe on how
best we can recover the economic viability of that country. There has been
progress."

Prior to that, Lesotho's Finance minister Timothy Thahane had
said crisis-ridden Zimbabwe and Swaziland, which are accused of human rights
abuses, would be discussed at the close of the summit. This was in view of
the fact that problems in Zimbabwe have forced millions of locals to flee
across borders, mostly to South Africa, Botswana and also overseas as
economic refugees.

"There will be a special session at the close of the summit to
discuss what's going on ... specifically in Zimbabwe and Swaziland," he
said.

Thahane, who is head of the Sadc Council of Ministers, said the
issue of former Tanzanian president Benjamin Mkapa's mediation in the
Zimbabwe crisis was not on the agenda, although it might be tabled in the
closed session.

Sources in Harare had indicated that Mugabe's delegation would
be seeking Sadc's support for Mkapa to become the official envoy of the
regional body on the Zimbabwe issue. This did not happen.

In view of this, the damage-control efforts and deafening
silence from the Zimbabwean delegation on the outcome of the summit reveal
the Lesotho mission was botched. Zimbabwe clearly wanted to avoid being
tabled as an issue at the summit while pushing through the Mkapa plan but
failed in both cases.

This - as demonstrated by Mugabe's unceremonious departure -
made the trip to Maseru a disastrous diplomatic expedition. This was made
worse by preceding events and Mugabe's hide-and-seek game with Kofi Annan.

After the African Union summit in Banjul, Mugabe claimed Mkapa
had agreed to mediate in the local crisis and was endorsed by the AU and
United Nations secretary-general. Mugabe also said Annan had agreed with him
in a meeting in Banjul that the problem was a bilateral dispute over land
reform between Harare and London. He alleged that Mkapa would now be trying
to resolve this with Britain.

However, most of Mugabe's claims started collapsing soon after
the AU summit. Firstly, Britain dismissed Mugabe's remarks about a bilateral
dispute between London and Harare as a distraction. The British said the
problem was internal and should be resolved by Zimbabweans. They said as a
result there would be no meeting between Mugabe and Prime Minister Tony
Blair to discuss the alleged dispute.

Mugabe has been campaigning for a meeting with Blair even though
he claimed after last year's general election that his party's victory was a
defeat for Blair and Britain because they allegedly wanted to oust his
regime.
British ambassador Andrew Pocock said last week there was no
need for Mkapa to act as a mediator. "What we need is a change of policies
by government," he was quoted as saying.

For Britain, therefore, the Mkapa initiative was dead in the
water from the start.

Secondly, Annan denied that he had agreed with Mugabe the
problem in Zimbabwe was a bilateral dispute between the two countries. Annan
also said he was not aware that Mkapa would be trying to resolve the alleged
problem.

And now it has emerged that Mkapa did not agree to mediate.

Well-sourced information shows that Mkapa did not accept the
mediation role and was actually angered by reports that he had agreed to
play that role.

Diplomats who were present in Maseru said Sadc leaders were
alarmed to discover that Harare wanted them to endorse the fiction that
Mkapa was now the mediator between Zimbabwe and Britain over a bilateral
dispute which only Harare can see.

While Zimbabwe and Swaziland clearly wanted to avoid special
attention - for all the wrong reasons - regional leaders put them under the
spotlight, forcing Mugabe to head home in frustration.

Official explanations for Mugabe's controversial departure
ranged from purported concerns about the need to fly out during daylight
because the Maseru airport was difficult to navigate in darkness to some
undeclared "compelling reasons".

But observers who attended the summit said Mugabe's furious
departure - which is unprecedented since he started attending Sadc meetings
in 1980 - was triggered by forthright discussions of Zimbabwe and Swaziland.
They said Mugabe had attended Sadc meetings in Lesotho before
but had not behaved the same way, showing last week's focus on the
attention-grabbing Zimbabwean political and economic crisis - widely blamed
on his leadership and policy failures - had infuriated him.

Mugabe has always sought to avoid debate on Zimbabwe at such
forums. A senior diplomat said Harare usually sends an advance team of key
officials on fire-fighting missions before Sadc summits to ensure that the
country is not on the agenda.

"When there were still ministers like Jonathan Moyo what used to
happen was that the government would start well ahead of the summit to use
the state media to influence public opinion and the agenda of the meeting,"
a government official said. "Moyo and company would go ahead to fight to
remove Zimbabwe from the agenda, but now such kind of officials are no
longer there and as a result Zimbabwe is now a subject of controversy at
every Sadc meeting."

Zimbabwe has been on the Sadc agenda as a trouble spot since
2001 when regional leaders agreed in Blantyre to form a troika comprising
South Africa, Botswana and Mozambique to deal with its crisis. In 2002
Zimbabwe was denied the opportunity to host the 2003 summit which was
eventually hosted by Tanzania.

In 2004 Zimbabwe was a major issue in Mauritius. Last year there
were attempts at the summit in Botswana to make former Mozambican president
Joachim Chissano an AU envoy on the Zimbabwe issue. Mugabe blocked the move.

Last week Zimbabwe again became a thorny issue in Maseru. The
same is likely to happen at future summits until the crisis is resolved.

At the end of the Maseru summit, all but four Sadc heads of
state signed a Finance and Investment Protocol, which aims to transform the
region into one that "is able to do business within itself and with the rest
of the world" through the harmonisation of tax and banking laws.

Along with leaders of the Democratic Republic of Congo, Botswana
and Angola, Mugabe did not sign the agreement and sources said he was
angered by the mention of his country as a stumbling block to investment.

While Zimbabwe continues reeling from an economic meltdown,
neighbouring states are enjoying significant growth rates and prosperity.


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CHRA has been at forefront of the fight

Zim Independent

By Mike Davies

YOUR correspondent R Gunner asks for comment from the Combined
Harare Residents Association regarding the latest antics by the municipality
operating under the illegal Makwavarara Commission, "Let's unite to oust
this commission", (Zimbabwe Independent, August 18).

We are not surprised by the attempts of the cash-strapped
municipality to offload its responsibilities onto residents. It is incapable
of delivering even a minimum of services to residents as it is financially,
morally, legally and professionally bankrupt.

It is led by a politically-appointed commission that is clearly
illegal and as such has no mandate to make any decisions on behalf of
residents. Its head is a rapacious turncoat who is frantically feathering
her nest before she is discarded by her boss who will not hesitate to
scapegoat her when it becomes expedient to do so.

As if Operation Murambatsvina was insufficient proof, the
arrogant nature of the letter received by Mr Gunner is ample demonstration
of an administration at war with residents.

This reflects the contempt that the regime has for urban
residents (who are derided as totemless) and its rural, peasant powerbase.
Let us not deceive ourselves about the nature of those who hold power at
Town House and elsewhere.

CHRA has been at the forefront of efforts to dislodge the
thieves who occupy Town House. We filed an application with the High Court
in June 2005 seeking legal recourse from the depredations of Makwavarara and
her fellow "travellers" but the court in its wisdom denied the urgency and
merits of our application. The failure of the judiciary to protect residents
has forced us to call for greater civil disobedience, primarily in the form
of rates boycott and also in mounting street protests to demonstrate against
the illegal commission and the continuing theft of our money.

Hence our call to ratepayers to refuse to pay rates under the
slogan "Do not fund your oppressors".

We are obstructed in this effort by those who are motivated by
self-interest and who bemoan the fact that their water will be cut off by
the municipality in an attempt to intimidate them.

Our response has always been that if one's principles do not
cost anything from time-to-time, then they are not worth very much.

lMike Davies is CHRA chairperson.


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Convergence of vision vital

Zim Independent

Comment

THE Sadc heads of state and government summit in Maseru,
Lesotho, ended inauspiciously for a gathering of this sort. Four countries,
among them Zimbabwe, did not sign the Finance and Investment Protocol on the
last day of the meeting on Friday. Normally such functions end happily with
lots of praise for each other and what has been achieved during the term of
the outgoing chair, although this is often hard to demonstrate on the
ground.

President Robert Mugabe reportedly left prematurely for
technical reasons to do with the airport. There were other reports that he
was angry that Zimbabwe was put under the spotlight at a closed session of
the summit for frustrating investment and stifling regional economic
progress.

Top of the summit agenda was regional integration.

Outgoing Sadc chair, President Festus Mogae of Botswana,
lamented lack of commitment by member states. This was evident in the
absence of funding for regional projects and over-dependency on donor aid.
He said Sadc members contributed as little as 31% towards regional
programmes while they expected donors to fork out the balance. This is
unsatisfactory for any bloc that wants to chart an independent course of
development.

Mogae also set an idealistic timeline of 2008 for a Free Trade
Area, a Customs Union by 2010, and a speedy resolution of multiple
membership to Comesa and Sadc.

Incoming Sadc chair, Prime Minister Pakalitha Mosisili of
Lesotho, made clear some of the problems facing the region. He said while
the community had made progress towards political freedom and democratic
governance, lack of peace and stability and rampant poverty rendered rapid
economic and social transformation almost impossible.

The high mortality rate from the raging Aids pandemic was
reversing all health gains made in the past three decades. Regional food
security also posed a big challenge, he said.

These basic issues had already been resolved among European
Union members before they could talk about economic integration. Sadc is
trying to model itself on the EU.

The Europeans also set stringent rules on government spending,
interest rate regimes, and inflation targets for would-be members. Sadc
appears to be concerned only with symbolic matters and practises little of
the democracy it preaches.

South Africa has failed to coordinate the process by reason of
its financial dominance. It is being accused of playing "Big Brother".
President Thabo Mbeki has watched his African renaissance and Nepad mothball
because fellow leaders are opposed to its "peer review" clause which is seen
as a Western impost.

While Sadc GNP grew by 5% last year, Zimbabwe has been on a
precipitous slide for the past seven years. The resultant mass dispersal of
its citizens has had a detrimental impact on regional economies. In fact,
economic refugees from Zimbabwe are causing social dislocation across the
region while the African Union and Sadc treat it as an internal affair.

The fallout from Zimbabwe's land reform programme has
contributed to widespread food insecurity that now haunts the region. There
are just too many political, social and economic distortions to make a
mockery of any talk of integration. Each country is raising its own barriers
on the movement of either people or goods without regard to calls for
increased intra-regional trade, itself a prerequisite for economic
integration.

Sadc leaders must agree a set of sanctionable economic and
political standards of behaviour before they can be taken seriously. The
grouping has raised the expectations of its people. But these will remain
hollow so long as there is no convergence of vision, strategies and
programmes towards their fulfilment among African leaders.

Which makes it the more ominous that President Mugabe should
leave Maseru without signing the Finance and Investment Protocol out of
personal vanity that his peers dared tell him politely in a closed session
that what he is doing is wrong.

The peoples of the region deserve better.


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Let's see you rise to the occasion

Zim Independent

Editor's Memo

By Vincent Kahiya

THE last time I wrote in this column about what I perceived to
be the shortcomings of the opposition MDC, the response from the party's
spokesmen and sympathisers was quick and brutal. "What is the business of
the Zimbabwe Independent criticising President Morgan Tsvangirai?" they
wanted to know.

I was pilloried and called names by people who took our
criticism of Tsvangirai as a deliberate ploy to undermine their leader and
prop up a faction led by Arthur Mutambara.

The criticism however failed to respond to my concerns then:
whether the opposition was providing any leadership to the people and what
the plan was beyond rhetoric and sloganeering.

The question remains largely unanswered today. I believe
politicians in both factions of the MDC still have a lot to do to remove the
fear I have that there are many among them who do not understand the
elementary tenet that the opposition is there to hold the state accountable
for its actions.

The tragedy of Zimbabwe stems largely from the fact that
political leaders in the ruling party have failed to provide direction to
the country. In an environment where a sitting government has become
synonymous with failure - like our own - it is incumbent on the opposition
to keep a close eye or ear on what the public is saying, needs and wants.

This is the nourishment an alert opposition requires for
sustenance because in most instances, problems are caused by the government
not delivering.

The already bad situation can degenerate further when an
opposition fails to articulate national problems and provide alternative
leadership from the elementary through to national level.

Tendai Biti, secretary-general in Tsvangirai's faction, captured
this major handicap to the opposition movement in his interview with SW
Radio earlier this month.

He spoke frankly about the party's docility when government
rendered thousands homeless under Operation Murambatsvina in May last year.

"We failed to provide the leadership to the huge fear or
frustration that was there and I think that leadership was critical," he
said. "And, because we failed to provide that leadership, we began to eat
into ourselves and the 12th October split was the inevitable result of
that."

His counterpart in the Mutambara faction weighed in with this
observation: "You cannot participate in a match when in fact you are
hospitalised and you are sick. And, this is what was happening, in my view,
to the MDC during the time of Operation Murambatsvina".

I do not believe that the party has been discharged from the
infirmary. It is still not ready to participate in the match despite calls
for civil disobedience to force President Mugabe to the negotiating table.

The crude central bank Project Sunrise has once again posed
questions of the opposition's ability to interrogate government's actions
and hold the state accountable to the public.

For three weeks the confusion, inconvenience and misery caused
by the project smacked of a country crying out for leadership which was not
available from the government which resorted to threats and coercion to
ensure its plan succeeded. Both factions of the MDC failed to heed the call
to duty and highlight the human rights abuses by the state in the execution
of the military-style operation.

Until Monday when the operation ended, the only really strong
statement against Project Sunrise had come from the Law Society of Zimbabwe
(LSZ), a professional body not necessarily seeking political capital.

The same issues contained in the LSZ statement could have had
greater impact if they had been carried on a political omnibus to rural
people who are still stuck with the old notes and who suffered more abuse
due to ignorance.

The relevance of an opposition becomes apparent in its ability
to shine the spotlight on serious political issues and have them resolved
quickly. The opposition was also found wanting by failing to propose
alternatives to what the state had proffered so that the public get the
benefit of political debate.

Tsvangirai was in Matabeleland last weekend to, among other
issues, discuss the current economic crisis and to assess national
preparedness in the Save Our Country Campaign to push President Mugabe "to
accept the people's demand for a new constitution, free and fair elections,
stabilisation and reconstruction ."

A statement from the party this week said "the people are raring
to dislodge the dictatorship".

Let's see leaders rise to the occasion.


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Getting new passport no stroll in the park

Zim Independent

Candid Comment

By Joram Nyathi

LAST week I submitted my passport application form. My passport
expired in 2003. Since then I have been trying to get a new one. It is a
taxing process even for the most patient. I am not. I will tell you all
about it once the process is over, that is, when I receive the new passport
from Tobaiwa Mudede's office.

When my passport expired I tried in vain to get forms from
Makombe Building along Leopold Takawira. There was always a huge crowd.
Later the distribution system was decentralised. People could get forms from
their district offices.

This sounded fine until I tried. I went to the office at
Kuwadzana one afternoon. I was informed they issue only 60 forms per day in
the mornings.

Twice in 2004 I got to the offices at 4am. This wasn't good
enough. Multitudes were already in animated conversation around bonfires.
There were all the tell-tale signs that they had slept there. I gave up.

Later a relative offered to help. He knew a friend or two who
could facilitate the acquisition of the precious piece of paper -- - the
application form that is. That was around November last year. It was not
until March this year that he obtained the forms. I duly filled them in
using the mandatory black ink.

I had every reason to be excited. I had no idea of what lay
ahead. That was just the beginning. Submitting the form is itself a test of
patience and a taste of bureaucratic impudence.

Queues form early near the entrance to the Passport Office along
Mbuya Nehanda Street. You have to check which one you are joining. There is
a queue for those who want to collect passports, another for those who want
to submit application forms, yet a third for those who, like me, want to be
given a date on which to submit their forms.

We stood huddled in the queue from 6am before two brusque
bureaucrats appeared at 8:15 to bark orders at us. Had we known, we should
not have bothered queuing. We were ordered back near the fence. The
selection of who went in first was absolutely random. The two young men
picked any five faces at a time, on a whim. These were lined up to have
their details taken down and given a date on which to submit their forms. By
the time good luck came my way I was number 213 and the queue was snaking
close to Herbert Chitepo Avenue.

When I produced my driver's licence in lieu of a chitupa I was
sternly warned by the young lady taking down my details to "bring your
national ID next time" after I tried to point out that my ID number was
there on the driver's licence. That was in May.

I was given August 17 as the submission date.

When I got there at 8:30 on the appointed day the first batch of
forms had been collected. That meant a long wait in the brown dust. In
between shuffling about foolishly, we were gulping plumes of dust like the
snake cursed out of the Garden of Eden.

About 10:20 an affable man came to collect the forms. That is
when time forgot us. When he returned to call our names to go to Room 87 for
fingerprints we all wore a thin layer of brown dust while we chewed maputi
like goats in the sun. It was around 12 noon.

The lady who served me looked fairly charming were it not for
the noise. She kept calling at "Jamela" about who was going out first,
presumably to get something to eat. Her noise bore through my head to reach
Jamela who was serving another client at the other end of the room.

She asked why I hadn't trimmed my photos to the required size. I
mumbled something about being told that they do it themselves as I scrambled
to look for whatever sharp instrument I could find to perform the surgery.
That was a grave error.

"Do you want to submit your forms or to cut your photos?" she
snapped at me as if we had been engaged in an angry mental contest the whole
day. I recoiled into the hard chair to await the termagant's further wish.

After my fingerprints were taken she threw a model photo size at
me and luckily a Samaritan woman nearby handed me a razor blade. I did the
best job possible, with the aid of my ID.

She stuck the photos in the appropriate slots on the form and
handed me a black felt pen for the mandatory two signatures. I was then
ordered to go to Room 3. The process had taken about five minutes but I was
more than happy to be out.

At Room 3 I paid $500 000. I was told to go to Room 4. I
eavesdropped from the queue that it was "the usual terrible lot" on duty. A
lady sitting behind a corner table beckoned me in where I ignorantly
surrendered everything I had in my hands. She fumed at seeing the payment
receipt which "should be kept in your pocket".

I withdrew the offending paper as the executioner thumbed
through the form. "Is your marriage registered?" she glared at me. "No."

She quietly placed the form in a pile and waved in the next
person, a double signal that she was done with me. It was through the lady
serving another client near me that I presumed I should "check after six
months" too. I couldn't dare provoke her further by asking. I slunk out,
happy to be free and done with.

I must nevertheless commend the department for its grim,
humourless German efficiency once one gets past the first entrance into the
catacomb of offices. The human traffic is always thick but the whole process
didn't take me more than 25 minutes. Apparently it's the getting to the door
that is a nightmare.


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Tell us what exactly happened in Lesotho

Zim Independent

Muckraker

ZIMBABWE is increasingly assuming the appearance of a police
state, not simply in the literal sense that the police exercise sweeping
powers of arrest and detention, but also in regard to state agencies
harassing the populace.

Media workers are all too familiar with the threats and
harassment from an unrepresentative and hostile commission appointed by the
state to police newspapers. The chairman of this commission, Dr Tafataona
Mahoso, has recently taken it upon himself to launch an assault on the Law
Society of Zimbabwe (LSZ) for having the presumption to challenge government
legislation in the courts.

He can't understand why law firms should wish to obstruct the
state in arresting bankers and other businessmen. He accuses the LSZ of
representing colonial interests and lists the law firms in the hope that
unsuspecting readers will be unaware of the fact that most of the firms he
cites long ago passed into the hands of partners who have no connection to
the colonial era.

Like his colleague Joseph Chinotimba who tells readers of the
Herald that Ian Smith is still resident in Zimbabwe, Mahoso thrives on a
climate of public ignorance. He knows perfectly well that many of the
bankers and businessmen who fled the country in the past two years did so
either because they faced lengthy periods of arrest while the police went on
a fishing expedition or because they could not be guaranteed a fair trial.

These fears were subsequently borne out when some of the bankers
concerned were informed by the state that there was no longer a case against
them.

The LSZ has a duty to uphold the rights of citizens, in
particular the right to be free from arbitrary arrest by a state intent upon
finding scapegoats for its abysmal economic and governance record. Childish
charges by Mahoso that the LSZ was pursuing "partisan and sectarian
politics" as a justification for the 2002 detention of its leaders simply
illustrate the repressive character of a state that attacks legal
institutions because they get in the way of its dictatorship.

Mahoso claims the LSZ leadership is unrepresentative of the
legal fraternity. But, unlike Mahoso who exercises power by patronage of the
President's Office, LSZ office-bearers are elected to their positions.

Mahoso is right about one thing though. Commonwealth lawyers and
those from other states should be given access to the country so they can
"see the country for what it is for themselves".

Over the past few weeks reports carried in the media reveal that
ordinary Zimbabweans travelling from their rural homes to towns to exchange
old money for new were stopped at roadblocks and had their money taken off
them. This for many represented a lifetime's savings. It is significant that
the ruling party's militia, the lawless "Green Bombers", were cited in
several of these reports. They were also active in Operation Murambatsvina.

In any society where the state performs an injustice to its
citizens and judges are hounded out of office for upholding the rights of
individuals as set out in the constitution, people will draw logical
conclusions about what is just and what is not. We do not need a Kenyan
lawyer to tell us. The victims of Zanu PF's "African revolution" have
invariably been poor and helpless citizens while its chief beneficiaries are
to be found among the nomenklatura. Mahoso studiously ignores that salient
point.

We appreciate state apologists are required to sing for their
supper every week. But claims about "foreign-sponsored regime change"
directing the legal profession are looking increasingly threadbare when the
law is so often ignored by those who find it inconvenient.

Which brings us to President Mugabe's deplorable remarks at the
Defence Forces Day commemorations.

"We want to remind those who might harbour any plans of turning
against the government," he said: "Be warned, we have armed men and women
who can pull the trigger."

We know that only too well. Joseph Mwale remains at large. So do
the bombers of the Daily News offices.

But what sort of demonstration of statesmanship was this crude
threat? Are people not allowed to "turn against" their government if it
betrays their trust? Do all protesters deserve to be shot?

Mugabe's remarks were widely published around the world. They
were hardly the sentiments of a ruler who feels confidently ensconced in the
affections of his people. Rather he sounded like a ruthless despot. People
in democratic societies will be appalled.

And what will visitors to Zimbabwe make of this?

The Zimbabwe Tourism Authority is another of those organisations
appointed to police a given constituency, in this case hoteliers and
restaurateurs (not restauranteurs as it is commonly spelt!)

Just when you would have thought the ZTA needed to provide a
climate of quiet confidence and harmony with the private sector, the state
body orders the closure of over 100 restaurants countrywide for "operating
without a licence".

They have evidently been taking lessons from Mahoso. Last week
ZTA chairman Emmanuel Fundira was seeking "punitive powers" to deal with
errant operators.

So what explains this sudden assault? Money of course!

The parasitic and Zanu PF-aligned ZTA feeds on the private
hospitality sector. It takes their money and then spends it on "promoting"
Zimbabwe. This mostly involves creating a superfluous bureaucracy and
claiming that all is well in the country when it manifestly isn't.

As one irate tour operator put it: "ZTA does not provide us with
any service. They just want to raise money from our operations."

Sound familiar?

So what exactly was said about Zimbabwe at the Sadc conference
in Lesotho last week?

Foreign Affairs minister Simbarashe Mumbengegwi told the Herald's
Caesar Zvayi that Zimbabwe was not on the agenda and therefore not
discussed. But Lesotho premier Pakalitha Mosisili told the press: "The
situation in that country is of concern to Sadc precisely because Zimbabwe
was the second strongest economy in the community and for its economy to
have declined to levels at which (it has) is of major concern to us."

The Sunday Times claimed President Mugabe was angered by the
suggestion that Zimbabwe was an impediment to regional investment. He
refused to sign a Finance and Investment protocol and left early, the paper
said.

But George Charamba said the departure was so timed because the
local airport required a daylight take-off and the only items left on the
agenda were the closing ceremony and a press conference.

We are not sure if that meant the other heads of state had to
wait in Maseru until the next day!

Charamba referred to other "pressing reasons" for Mugabe's
departure.

The Sunday Times says Mugabe was furious at criticism of
Zimbabwe although Mosisili tried to play this down, saying people shouldn't
read too much into his early departure. Mugabe "is not a young man, is over
80 and surely the old man is slowing down," he said.

That's the language that drives Mugabe mad. The truth is that
our ageless president wants to call himself a "young old man" and his doctor
recently told him he had the bones of a 28-year old.

In keeping with this diagnosis he reportedly dyes his naturally
greying hair to maintain his youthful looks. So who says he is old and
slowing down?

The Herald has pronounced the change-over from old bearer
cheques to new ones as "smooth". This was despite reporting on Tuesday that
people were being forced to "swarm banks" and to "go on shopping sprees" to
get rid of excess cash which they could not dispose of in the short period
allowed by the Reserve Bank.

There were also reports that most retail shops did not have the
smaller denominations of the new notes. This caused problems with people who
wanted change. Instead shops were trying to offer the old bearers, which
would be valueless the following day.

There was also confusion among commuters as transport operators
started rejecting old bearers over the weekend. A number of people
interviewed by Newsnet complained that the deadline was too short.

This was understandable given that the Reserve Bank launched its
publicity campaign more as an afterthought than part of a planned
transitional strategy.

It is not clear to us how many real crooks were caught in the
ambush that Gideon Gono claimed he was staging. What is evident is that it
was ordinary citizens going about their business who were inconvenienced by
the numerous roadblocks along the country's highways or lost their money to
green-clad crooks posing as law enforcers.

The process was as smooth as only those who play smoke and
mirrors games could make it. Anybody who cared about the truth would easily
have seen the chaos at banks and major supermarkets in the city centre that
there was nothing smooth to talk about. But then what can one expect from a
paper that reports the fable that $10 trillion in old bearer cheques can be
"smuggled into the country" in "huge boxes" through Harare International
Airport.

By Wednesday the paper was in reverse gear, reporting shops
running out of change and the resultant "nightmare" for the public. Which is
which Master Spinner?

Gono's response to this lack of planning has been typical of the
establishment.

He not only opted to be far away from the scene on the day of
reckoning, he also issued the usual threats about businesses trying to
sabotage his project, warning there would be no extension to his arbitrary
deadline, as if he had just come down from Mt Sinai. It has a familiar ring
in the failed land reform programme. There were equally many "backers" and
"detractors" and the nation is still waiting for the dividend seven years
down the line.


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Government's endless repetition of errors

Zim Independent

By Eric Bloch

IT is said that there are none so dumb as those who will not
learn. If that is so, the Zimbabwean government must surely be the dumbest
of the dumb, for it repeatedly evidences a determination and resoluteness
not to learn from its errors. Instead, it repeats those errors over and over
again, in the process recurrently undermining an already exceptionally
unstable, deeply distressed economy and worsening the hardships of the
populace as a whole.

Government's recurrent mistakes are manifold, including its
annual inability to ensure timeous availability of agricultural inputs,
outweighed only by its even more frequent making of formerly
highly-productive agricultural lands available to the well-connected and
well-endowed, but ill-disposed to work the lands, or to those with the will
and ability to use the lands, but devoid of the necessary resources, albeit
that there are endless promises that those resources will be forthcoming,
which promises are invariably unfulfilled.

Equally pronounced and damaging mistakes include the
never-ending scepticism and suspicions that result in the rejection of
well-intentioned, constructive advice from bodies such as the International
Monetary Fund (IMF) and countries as would readily befriend and assist
Zimbabwe, resulting in the alienation of goodwill of many, including in
increasingly great numbers, of Zimbabwe's neighbouring states, as well as
the European Union, the Commonwealth and the USA, in addition to a
progressive weakening in relationships with various North African,
Middle-Eastern and Eastern countries.

In like manner, government continues its endless overspend upon
defence, a gargantuan governmental infrastructure massively in excess of
national needs, perceived symbols of status and prestige (such as un-needed
fighter aircraft to be used for three ceremonial fly-overs a year, vast
motor cavalcades and the like) and much else as is of little benefit to
Zimbabwe or its people, whilst concurrently it does not spend sufficient
upon health, education, social welfare, economic development and much else
necessary to ensure the well-being of the populace.

So great are the numbers of errors which government commits, not
once, but over and over again, that it is near impossible to list them all.

However, among those which must inevitably be of very great
concern are many which are economically related.

Over the last nine years, the economy has shrunk by more than
40%, resulting in a massive decline in numbers employed and world-record
levels of hyperinflation. That, in turn, has transformed most of the
populace into poverty-stricken sufferers, unable to feed themselves and
their families adequately, let alone house, clothe and educate them and
attend to their health and other needs.

All of these endlessly repeated errors have contributed to the
economic morass that is Zimbabwe today. But there are very many others that
are equal or greater contributants to it.

Foremost among the oft re-committed mistakes is that, in
consequence of government's deep-seated belief that it must have absolute
control over all facets of society, whether political, social, judicial,
economic, or otherwise, it relentlessly espouses the philosophies of a
command economy, wherein everything is driven by governmental dictates and
regulation.

The fact that no economy has ever in history prospered
continuously in such a regime is of no concern to government, for its
conviction of its own omnipotence and infallibility is so great that it is
incapable of conceiving a possibility that an economy driven by its commands
cannot succeed unless collapsed by the deliberate sabotage of nature and of
Zimbabwe's enemies (actual or perceived - with such perceptions being very
many, occasioned by the intensity of government's misplaced persecution
complex).

Therefore, government disregards the decades of failed command
economies of the former Soviet Union, of China under the draconian rule of
Mao-Tse-Tung, of Tanzania under Julius Nyerere, Mozambique under Samora
Machel, of Cuba, Argentina, and many other countries whose governments
destroyed their economies by excessive state controls).

Among the most foolhardy of state regulations is the imposition
of price controls. The motivations for such controls are invariably in order
to prevent profiteering, contain inflation and protect the majority from
exploitation. Hence, governments see price controls as pathways to
maximising support from the populace, made to believe that governments are
caring and attentive to the needs of the economically oppressed.

Similarly, consumers are usually imbued with a belief that
prices are determined only by greed and not need, and must therefore be
controlled. They are supported in such belief by consumer representative
bodies which in many respects do outstandingly beneficial work for consumers
but who, nevertheless, with undoubtedly best intentions, do them a
disservice when they campaign for price controls and restrictions.

The reality is that price controls are invariably extremely
prejudicial to consumers and harmful to economies. More often than not, the
prices are unrealistically determined without adequate recognition of all
concomitant costs to the acquisition or production of the relevant products,
the marketing thereof, the unavoidable diverse attendant direct and indirect
overhead costs, finance expenses, taxation and a fair return on capital
employed.

Even when all those factors are correctly taken into account,
prices are virtually never modified timeously in relation to changes in the
costs, whether driven by changes in international prices, exchange rates,
domestic inflation, interest rates, or otherwise.

As a result, businesses can rapidly not afford to sell the
products, for the controlled prices can then only result in unsustainable
losses or at best in inadequate, non-risk related returns.

Thereupon, either the businesses collapse, with consequential
losses of capital, increased unemployment, lesser national economic
activity, reduced inflows to the fiscus and numerous other economic ills.

In other instances, the businesses survive, thanks to their
trade in other products, commodities, goods or services, but discontinue
selling the unprofitable, price-controlled items. This results in
progressively intensifying shortages of the price-controlled products, to
the inconvenience and discomfort of the consumers.

Wheresoever the price-controlled products are of a nature
essential to the consumers, the increasing non-availability and intensifying
shortages rapidly fuel black markets operating outside of governmental
control where the same commodities are available, but always at prices very
considerably greater than the state-controlled prices.

All too often, the commodities in the black market are also
substandard (fuel that is watered-down, foodstuffs that have passed their
safe "use-by" dates and similar non-compliance with norms).

Shortage-driven desperation drives the consumers into paying
vastly excessive prices whilst risking being the victims to fraud. There has
been much evidence of this in Zimbabwe over the past few years, with
especial reference to petrol and diesel, maize-meal, sugar, flour, bread,
cooking oil, paraffin and soap, computer ink cartridges, motor vehicle
spares, tyres and innumerable other products.

Not only have end-consumers been forced to resort to the black
market, but so too has commerce and industry, resulting in immense increases
in operational costs reflecting in prices (save where controlled!).

In order to survive, many businesses have also had to circumvent
controls by modifying their products, as was seen - for example - when
bakers could no longer produce a standard loaf of bread at the controlled
price and discontinued baking that loaf, but instead produced "super-loaf",
rolls, confectionery, and novelty breads as were not subject to price
controls.

Thus, whensoever price controls have been imposed, either
consumers could not purchase their needs at any price or had to resort to
substitutory products or the black markets, in either instance being
confronted by even greater costs than had the prices of their requirements
not been controlled in the first instance.

Government will never acknowledge it but vehemently and
vigorously deny it. But the reality is that its price controls are a major
fuellant of inflation and a great disservice to the populace even though
many of the populace appealed for them, unaware that the result would not be
an easing of their distress, but a grievous worsening of their lot.

Last week government demonstrated, yet again, its total
inability to recognise the gargantuan economic prejudices of price controls.

The Minister of Energy and Power Development, Rtd
Lieutenant-General Mike Nyambuya, announced that the cabinet had, on August
11 approved new fuel prices of $320 per litre of diesel and $335 per litre
of petrol.

Such prices were clearly founded upon presently prevailing world
crude oil prices and the recently established interbank exchange rate of
US$1:$250, inclusive of procurement costs, Noczim Debt Redemption Levy,
Carbon Tax, and government's perceptions of the operating costs of fuel
importers, distributors and retailers.

But those prices do not recognise that currency available to
Noczim and through the interbank market does not suffice to fund all
Zimbabwe's fuel import needs and that, therefore, much fuel can only be
obtained if foreign currency is sourced at a premium from "free funds",
being funds which do not mandatorily have to be repatriated to Zimbabwe and
sold through the interbank market.

Therefore, Zimbabwe is about to be faced, once more, with
horrendous fuel shortages, which will only partially be addressed at massive
cost through the black market.

Commuter transport will become grossly inadequately available
and that as will be available will be at prohibitively high cost (through
price control circumventions), the operations of industry, commerce, mining,
agriculture and tourism will all be severely hampered, the future of many
businesses will once again be endangered and the long-awaited economic
recovery, supposedly about to commence, will become another mirage.

Government must, one hopes, eventually learn that the only way
to contain and curb price hikes is by having a virile, thriving economy,
driven by productivity and competition.

Surpluses breed efficiencies and cost containment in order that
price competitiveness can operate.

Price controls breed shortages, inflation and economic collapse.
But will government ever be mature enough to learn and heed that, or will
government continue its relentless pursuit of repetitive error?


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Zim Independent Letters



Revoke their licences if they're not building

I HAVE often wondered how Zimbabwe's building societies came
into the banking business when they are not called "banking societies".

The label, "building society" gives the impression that their
core business is building. Nothing could be further from the truth.

Zimbabwe's housing list continues to grow, and last year's
Operation Murambatsvina made the homelessness situation worse, while the
so-called building societies have yet to prove that they are doing anything
significant on the housing front.

I haven't heard of many houses being built by building societies
and I dare say housing cooperatives have done more over the years with the
meager resources they get from members' contributions.

Why are there so few houses built by building societies? After
26 years of Independence, building societies should have built more houses
than any other organisations.

Perhaps the RBZ could look into this situation and find out how
many houses have actually been built by these societies, and how many of
their clients have benefited.

If they have nothing to show for their "building profiles", they
should have their banking licences revoked immediately, or have them change
their names to banking societies.

T Namate,

Harare.

      ----------
      Agro-recovery a mirage with Made in charge

      WHEN the bespectacled, highly-respectable and learned
spin-professor Jonathan Moyo was shown the door out of the ruling Zanu PF,
he made a very interesting analysis, as is his trademark.

      It was like the famous Shakespeare's Hamlet in a dilemma
when he said: "To be or not to be is the question?"

      The professor in his remarks said: "Those that appoint may
disappoint."

      This was in reference to President Robert Mugabe who had
appointed him. Recently, Mugabe breathed fire over under-performance by some
of his ministers, specifically singling out two: the Ministry of Lands and
Agriculture headed by Dr Joseph Made and the Ministry of Mines headed by
Amos Midzi.

       Surprisingly, the two ministers are still holding their
fort. Not that anything has improved or is improving. If anything, it is a
disaster, particularly in agriculture.

      Made is a disappointment to the nation. I do not know why
Mugabe leaves him to continue destroying the nation.

      Made has failed the nation. The president knows it but
Made does not seem ready to pack his bags and leave. Mugabe does not have
men of integrity who would after being told that they have failed the
nation, do the honourable thing - resign.

      Made wants to be humiliated, he wants to be fired!

      Since he assumed office through a presidential appointment
as a technocrat, presumably as one of those who were assumed to have a spine
(indoda sibili elomgogodla) he has not done the nation any good.

      I am not saying Made should find a strategy to avert
droughts, floods or any other act of God that impedes the production of
adequate food security.

      Mugabe has bemoaned the untimely delivery of farming
inputs which characterises poor management. Why should poor management be
left to prevail without corrective measures being effected?

      A while ago Made boasted having flown around the country
(burning the tax payer's money both on the ground and in the air) and
promised the nation a bumper harvest. What do we get today? This is
embarrassing and a shame to our heritage.

      We need to be treated with respect as a nation. Made has
always been warned by the Famine Early Warning Systems Network (Fewsnet)
Zimbabwe Vulnerability Assessment Committee (Zimvac), Food & Agriculture
Organisation (FAO), his officers through the Agriculture Research and
Extension Services (Arex), but he chooses to lie and tell the nation that
there is enough food amidst overwhelming statistics to the contrary.

      Disputing statistics when there is no food is just like a
woman denying her pregnancy during its early stages. Unless the woman
undertakes an abortion, the pregnancy would still protrude and show.

      It is unfortunate that the GMB acting chief executive
officer, retired Colonel Samuel Muvhuti has allowed himself to be sucked
into the Made-mania of not being honest. How could he say he is building
national silos when the people have no food?

      It is nonsensical to me. If there is no food Made should
just be honest and tell the nation.

      Other uninformed sectors of the community were accusing
the Bulawayo millers of sabotaging the economy by hoarding grain. We have no
evidence to prove otherwise, but before the rooster had crowed, the
Chronicle had a headline reading: "Maize stuck at Beitbridge". Suddenly the
bumper harvest is resurfacing from South Africa. Who is fooling who?

      As if this was not enough, the Sunday News had a heading:
"GMB fails to collect grain".

      Why do we play games with the politics of food? Augustine
Mukaro wrote a story replete with statistics on the importation of food in
an article "Imports cushion food deficit", (Zimbabwe Independent, August
18).

       If Mugabe has time to read the Independent, could he
please help us by putting an end to this circus? I appeal to him because he
is the authority that appointed these people who have let us down on their
strategic positions, hence our suffering.

      There are farmers who are into poultry who have lost a lot
of birds because of the lack of stockfeeds, let alone grain to prepare
chicken feeds.

      Millions of (revalued) dollars put aside for production
have gone down the drain due to some individuals who fail to deliver. Made
continues to mess up the turnaround in the farming community because he
depends upon the president's authority.

       Most Arex officials I have interfaced with have lost
respect for Made. They say he is disrespectful, arrogant and does not have a
teachable spirit. He left a trail of disaster at Arda.

      Made should treat the nation with respect. There is
nothing unpatriotic in telling the truth.

      Zimbabwe over the years has always needed 1,8 million
metric tonnes of food before the next harvest in order to feed its people.

      The Sunday News issue of August 20 increased it to two
million metric tonnes. Ever since 2002, Zimvac, FAO and Fewsnet resports
have been accurately forecasting the prospective food harvests and needs of
the country while Made has been continuously in denial.

      We are sick and tired of this hypocrisy. Made should be
man enough and stand up to the challenge. He is the enemy of agriculture, no
more no less!

      As long as Made is the Minister of Agriculture nothing
will improve. Instead, we will go back to peasantry farming.

      I request those friends of Made who read this letter to
make a cutting and show it to him. Zimbabwe is a blessed country endowed
with good agricultural infrastructure to deliver enough food but falls short
of a minister who has integrity at the Agriculture ministry.

      I beseech President Mugabe, by the mercies of God that he
shows Made the way out so that our food security can improve.

      TD WaMzezethure,

      Richmond,

       Bulawayo.

-----------
            Isn't there a conflict of interest?

            "FUEL prices slashed," blared the Herald's headline
on August 18.

            "With immediate effect" the price of diesel would be
$320 and the price of petrol would be $335," it was stated.

            In recent times we have also been regularly informed
about Reserve Bank governor Gideon Gono's warnings to retailers not to
increase prices during the currency switch.

            In view of this, could someone explain why on the
same day, at Country Petroleum Service Station in Mabelreign, both petrol
and diesel were being sold at $650 per litre?

            And as of August 21, diesel continued to be sold at
$650 per litre. If it is true, as commonly believed, that this service
station is part of Gono's business empire, perhaps the someone who can
explain is Gono himself.

            Normally (to the extent that anything is "normal" in
Zimbabwe) this service station always has fuel available, but interestingly
since August 19, no petrol has been on sale.

            One would hate to think that Gono is guilty of the
same business practices that he condemns in others: selling at above the
controlled price and subsequently withholding products from the market
because of price controls.

            And if this service station is part of Gono's
business empire, is there not a potential conflict of interest when he is
involved in a business that requires foreign currency to operate?

            Given the centrality of the anti-corruption drive to
Gono's attempts to revive the economy, surely he must be seen to be above
reproach.

             Everett Scott,

             Harare.

       -----------
                  'United Front impossible under Tsvangirai'

                  THE much talked about United Front is a
notable idea if stakeholders engage each other in good faith.

                  The Christian Alliance should be viewed as a
neutral body whose hands are clean but it is saddening to note that some bad
apples at the level of chairman and women's assembly chairpersons in the
Morgan Tsvangirai camp claimed to be the architects of the Christian
Alliance.

                  Any attempts to hoodwink church and civic
groups into catapulting Tsvangirai to the presidency of the proposed United
Front through the back door will be resisted. The MDC will never allow
dictators and political prostitutes to abuse the church initiative of
building a Zimbabwe we want.

                  The United Front under the leadership of
Tsvangarai will never take us anywhere. We are very much aware of some bad
elements who want to use the Christian Alliance to impose Tsvangirai on the
people.

                  Zimbabwe needs a leader with a working game
plan to remove the Zanu PF government from power, not violent leaders who
have been making empty promises since 1999. Zimbabwe needs an opposition
leader who can go on a full-scale war with the Zanu PF regime leader, not
one who is always arraigned because of confusion and lack of strategies to
achieve set goals.

                  As a family we need each other but we are not
desperate for Tsvangirai whose survival hinges on Zimbabwean politics.

                  The man is a tried and tested political
failure with zero capacity to form the next government after removing
Mugabe.

                  Kurauone Chihwayi,

                  MDC Harare Information & Publicity secretary.

                   ---------------------

                    It's more than ICTs alone

                    I MAKE reference to an article in the
YoAfrica column "ICT essential for rural development in Africa", (Zimbabwe
Independent, August 18).

                     The article quotes one paper entitled "ICT
in support of grassroots rural development", presented during the ICT
Conference in Nairobi by Dr Robert Kozma.

                    He put across a point that ICTs are "key to
unlocking rural development and contributing to the Green Revolution in
Africa".

                    While I do not disagree that rural
communities stand to reap some benefits from the use of ICTs, I would like
to highlight that it is misleading to suggest that the introduction of ICTs
alone in rural communities will change the lives of people there overnight
and see what he calls a "Green Revolution" take place.

                    There are more underlying problems in Africa
that, if not changed, rural communities will forever languish in poverty.

                    The major issues needing address are issues
to do with governance, poverty and illiteracy among others.

                    These are problems that cannot be solved
purely by the introduction of ICTs. It is folly for anyone to suggest that
"ICT and broadband connections can unlock development in the rural areas".
                    I do not agree that the first focus must be
ICTs development. How can one use a computer if they are illiterate to begin
with?

                    How can my grandma out in Nkayi "google
search" and assume all her bread and butter issues are solved?
                    This is the problem with our intellectuals.
Writers must be in touch with poor communities and not write from high
pedestals.

                    ICTs cannot be given priority in African
communities as long as there is no access to basic services such as running
water, proper health facilities, affordable and accessible primary and
secondary education, usable roads and fostering of democratic societies.

                    TNM ,

                     Harare.

                     --------
                    It's a govt/RBZ ruse

                    DID you know that the RBZ and the government
have the potential of making a fortune from ensuring that a lot of people
fail to submit their old bearer cheques before the set deadline?

                    Let me illustrate: suppose I have $100
million of the old bearer cheques and I fail to submit the amount on time;
that would imply that the RBZ has literally taken $100 million from me
(meaning it has taken the value I have earned) and is thus $100 million
richer.

                    Think about it.

                    But if approximately half of the cash is not
submitted by the set deadline, how much does the RBZ make? Wouldn't it be
enough to fund the RBZ's car-buying spree or other government-sanctioned
lavish expenditure?

                     James,

                    Old Highfield,

                    Harare.

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