The ZIMBABWE Situation
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SADC must supervise Zim polls: NGOs

http://www.zimonline.co.za

by Edward Jones Friday 27 August 2010

HARARE - Zimbabwe's civic society pressure group, Crisis in Zimbabwe
Coalition said yesterday the regional Southern African Development Community
(SADC) should monitor the country's next vote to stop violence which has
scarred past elections, an idea that President Robert Mugabe is likely to
reject.

The southern African state could hold the next general election as early as
next year if the coalition government formed in 2009 successfully holds a
referendum on a new constitution.

Mugabe's ZANU-PF party is accused of resorting to violence to remain in
power since 2000, which has seen senior party members being slapped with
financial and travel sanctions by the European Union and United States.

Crisis, which is a coalition of several human rights and pro-democracy NGOs
including the labour and student movement, said a meeting of SADC leaders
last week in the Namibian capital Windhoek had failed to come up with a
clear roadmap towards the next Zimbabwe election to ensure it is radically
different from 2008.

"Owing to superficial reforms, Zimbabwe's institutions remain too weak and
compromised to prevent state-sponsored violence or to deliver a democratic
election," Crisis said in a statement.

"SADC must be the midwife to help deliver democracy in Zimbabwe. Without
that, it will be another stillbirth for democracy in Zimbabwe."

ZANU-PF lost its parliamentary dominance for the first time in March 2008
after being defeated by Prime Minister Morgan Tsvangirai's Movement for
Democratic Change (MDC) party.

Tsvangirai also beat Mugabe in the parallel presidential race but was denied
an outright victory after electoral officials withheld results for five
weeks and announced a run-off, which the 86-yeart-old Mugabe won after a
violence campaign that shocked and embarrassed even some of his staunchest
supporters in Africa.

The victory elicited worldwide condemnation, forcing the veteran leader into
a coalition government with Tsvangirai and a break-away MDC group led by
Arthur Mutambara.

The MDC says more than 200 supporters died in the run up to the run-off,
which Tsvangirai boycotted.

Crisis said SADC, which is the guarantor of the September 2008 political
accord between ZANU-PF and MDC, should ensure Zimbabwe fully complies with
SADC election principles and guidelines, which call for impartiality of
electoral institutions, prevention of state-sponsored violence and
non-interference in electoral processes by the state security apparatus.

Critics say Mugabe has used the country's state security to intimidate and
keep opponents in check in a bid to retain power.

ZANU-PF and MDC have agreed on some wide ranging electoral reforms, which if
implemented could minimise future disputes.

But analysts argue that while electoral violence and interference by state
security agents in the electoral process continue to stalk Zimbabwean
elections, the biggest threat is a clique around Mugabe that continues to
frustrate the smooth transfer of power.

Crisis said as much, urging SADC to "guarantee the democratic transfer of
power to the eventual winner of the proposed elections."

"The problem in Zimbabwe is not so much about the election outcome. We have
always known who has won the election, but the real crunch is resolving the
matrix of the transfer of power. If you can unlock that you have resolved
the Zimbabwean crisis," a Western diplomat said this week.

Political commentators say Mugabe is likely to lose again to Tsvangirai in a
free and fair election but they question whether ZANU-PF, torn by faction
strife, will want a repeat of the March 2008 defeat.

To protect the integrity of Zimbabwe's elections, SADC should deploy
monitors in Zimbabwe to closely assess the ongoing constitution-making
process and to investigate reports of violence, intimidation and the setting
up of militia bases across the country, Crisis said.

"The chaos, violence and intimidation authored predominantly by president
Robert Mugabe's ZANU-PF party around the constitutional outreach program
clearly indicate that instruments of repression remain active and that they
are likely to be used again in future elections," the pressure group
said. -- ZimOnline.


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Zimplats swings back to profit

http://www.zimonline.co.za

by Own Corespondent Friday 27 August 2010

HARARE - Zimbabwe Platinum Holdings (Zimplats), the country's largest
producer of platinum swung back to profit this year after production of
platinum metal group nearly doubled, thanks to firming global metal prices
and an improvement in the country's economy, chief executive Alex Mhembere
said yesterday.

The platinum miner, which is majority controlled by South Africa's Impala
Holdings said after tax profit for the year-end to June this year soared to
$122 million after posting a $25 million loss during the same time last
year, making it the most profitable company operating in Zimbabwe.

The loss during the June 2008 to June 2009 period was at the height of the
country's debilitating economic and political crisis after an election
deadlock between President Robert Mugabe and Prime Minister Morgan
Tsvangirai, who went  on to form a unity government last year in February.

"The financial performance mirrored the excellent operational achievement in
the year," Mhembere said in a statement accompanying the results.

The company registered strong growth in turnover, which surged 236 percent
to  $404 million, propelled by a surge in sales of the platinum group
metals, which include platinum, gold, rhodium and palladium.

Zimplats exports unrefined platinum group metals to South Africa, which has
the continent's only platinum refinery.

Platinum group metals output rose to 350,000 ounces from 190,532 ounces
after ore production increased significantly and together with improved
metal prices resulted in strong cash generation.

Zimplats managed to shave off 11 percent on the cost of producing an ounce
of platinum from the previous year, benefiting from an increase in
production, the replacement of expensive open pit ore with underground
mining and stringent cost controls.

Zimplats is the largest miner in the country and says it is ready to pump in
a further $500 million to expand its operations but is holding out until
there is clarity on the government's indigenisation policy. That will take
its total investment in Zimbabwe to $1 billion.

The government earlier this year published rules demanding that
foreign-owned companies should cede 51 percent of their shareholding to
locals, a move that scared investors and divided the unity government.

The government later revised the law and two weeks ago named committees to
recommend varying percentages of shareholding foreign-owned companies in the
different sectors of the economy must transfer to locals.

"A significant amount of time has been spent discussing the company's
indigenisation proposals with the relevant government authorities. The
proposals  are yet to be accepted by the government," Mhembere said.

Zimplats wants spending in local infrastructure such as roads, schools and
hospitals to be converted into empowerment credits, which would mean it will
not be forced to cede majority shares to blacks.

Mugabe has previously said the government had accepted the principle of
empowerment credits as a vital component of the indigenisation law.

Mhembere said this year Zimplats had spend $10 million on renovating and
building new schools in Mhondoro-Ngezi where it operates and will officially
open a new $30 million electricity substation during the first quarter of
2011.

Zimplats also saw a jump in operating costs for the year to $223 million, up
61 percent from 2009, as a result of ramping up production. - ZimOnline.


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Number of Zim asylum seekers drop: UK

http://www.zimonline.co.za

by Own Corespondent Friday 27 August 2010

HARARE -- The number of Zimbabweans seeking political asylum in the UK last
year sharply dropped to slightly more than 400 people down from more than
1500 in 2008, official figures from the British home office showed.

According to the figures obtained from the National Statistics, only 405
Zimbabweans applied for asylum in the UK last year down from 1 560 in 2008.

The Home Office data did not show or say what caused the decline in the
number of Zimbabweans wishing to apply for asylum.

Zimbabwe has close cultural and economic ties with its former colonial ruler
despite severely strained political relations.

The UK is arguably the most popular destination outside Africa of the more
than three million Zimbabweans who have fled their home country in the last
10 years because of a political crisis and economic turmoil blamed on
veteran President Robert Mugabe's controversial rule.

Mugabe's unity government with Prime Minister Morgan Tsvangirai has been
able to stabilise Zimbabwe's economy and end inflation that once hit 500
billion percent at the height of the country's economic meltdown two years
ago.

But unending bickering between Mugabe's ZANU PF party and Tsvangirai's MDC
plus the coalition government's inability to win financial support from rich
Western nations have held back efforts to rebuild the economy - and left
many Zimbabweans reluctant to commit their future to their country and
instead looking to seek opportunities in foreign lands. - ZimOnline


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Zimbabwe Constitution-Makers Seek Funding for 15 More Days of Outreach

http://www.voanews.com/

Mwonzora said the 15 additional days will cover the outreach exercise in
Harare and Bulawayo, which was postponed in June due to concerns about
suspected plans to pack meetings

Jonga Kandemiiri | Washington 26 August 2010

The parliamentary select committee in charge of Zimbabwe's constitutional
revision process said Thursday that it needs to raise another US$5 million
dollars to fund a 15-day extension to the public outreach program initially
slated to last 65 days, amid international donor concerns about soaring
costs.

Select Committee Co-Chairman Douglas Mwonzora said the panel will meet with
the project board in charge of funding issues Monday to discuss the
extension of 15 working days or three weeks, and the respective roles of
donors and the government of Zimbabwe in meeting additional costs.

Mwonzora said the 15 additional days will cover the outreach exercise in
Harare and Bulawayo, which was postponed in June due to concerns about
suspected plans to pack meetings - and also because the World Cup of soccer
unfolding next door in South Africa commanded public attention.

Mwonzora told VOA Studio 7 reporter Jonga Kandemiiri that an additional US$5
million is needed but that the Harare government has already raised $1
million.

Lovemore Madhuku, chairman of the National Constitutional Assembly, a civic
group that has opposed the parliamentary-led constitutional process, said
donors have only themselves to blame for the present situation because they
knew from the start that the process was flawed.
 


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Zimbabweans Debate, Reconsider Institution of National Liberation Hero

http://www.voanews.com/

For now at least the institution is firmly in the hands of ZANU-PF which has
shown no inclination to open the process of designating national heroes to
its MDC governing partners or other stakeholders

Patience Rusere | Washington 26 August 2010

The death this week of Zimbabwean opposition founder Gibson Sibanda reopened
the debate over the institution of National Hero and whether President
Robert Mugabe's former ruling ZANU-PF party should retain its monopoly on
according the nation's highest honor.

President Robert Mugabe and ZANU-PF declined to honor Sibanda as a national
hero despite his role as a liberation activist jailed by the Rhodesian
government of the 1970s, a trade union leader and co-founder of the former
opposition Movement for Democratic Change, now in government.

Sibanda was welfare secretary for the Popular Front-Zimbabwe African
People's Union - PF-ZAPU - in the western Matabeleland region during the
conflict that led to independence in 1980.

In contrast, Mr. Mugabe's sister Sabina was made a hero within 24 hours of
her death July 29.

For now at least the institution is in the hands of ZANU-PF which has shown
no inclination to open the process of designating national heroes (who
qualify to be buried at National Heroes Acre in Harare) to its MDC governing
partners or the relatively recently reconstituted ZAPU.

Analysts say that so long as ZANU-PF has control, members of the former
opposition parties won't get a fair hearing upon their deaths as to their
qualifications for national hero status.

In a round-table discussion, University of Zimbabwe political lecturers John
Makumbe and Joseph Kurebwa told VOA Studio 7 reporter Patience Rusere that
the hero issue should have been addressed in the 2008 Global Political
Agreement for power sharing.

Makumbe said Sibanda deserves to named a hero in light of his liberation
activities and his key roles as post-liberation union leader and MDC
founder.

But some participants in the VOA Studio 7 LiveTalk program on Thursday said
that the institution may have become too politicized by ZANU-PF at this
point to be democratized, and that the emphasis in any case should be
shifted to serving the nation to help it meet present challenges.


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Zimbabwe Government Renews Search for Strategic Partner in Steel Venture

http://www.voanews.com/

Industry Minister Welshman Ncube said Zimbabwe does not see multinational
corporations as appropriate partners for the restructuring of
state-controlled enterprises such as ZiscoSteel

Gibbs Dube | Washington 26 August 2010

The Zimbabwean government has renewed its search for a strategic partner to
participate in the restructuring of the Zimbabwe Iron and Steel Company -
ZiscoSteel - but has signaled that it does not want to partner up with a
huge international conglomerate that will dominate the venture.

Industry and Commerce Minister Welshman Ncube said the new partner sought by
the government should have the capacity to acquire a large portion of the 89
percent state stakeholding in ZiscoSteel, revive steel production and pay
down company debts of many millions of dollars.

But Ncube said Arcelormittal Private Limited, rejected by President Robert
Mugabe, will not be invited to to submit a fresh bid. Mugabe said the
company was too powerful to run ZiscoSteel.

But another earlier bidder, Jindal Steel Limited of India, will be allowed
to tender an offer, he said.

Ncube told VOA Studio 7 reporter Gibbs Dube that Zimbabwe does not see
multinational corporations as appropriate partners for the restructuring of
state enterprises.

Economist Eric Bloch said few international companies in any case are likely
to submit bids for a stake in ZiscoSteel due to the government's handling of
previous acquisition negotiations.

"There will either be a few bids or no bids at all due to skepticism over
the government's negative attitude towards big international investors,"
said Bloch.


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Ultimatum for banks

http://www.theindependent.co.zw/

Thursday, 26 August 2010 20:53

ZIMBABWE'S financial services sector stands to lose at least US$3 million
daily in deposits after a union representing bank employees gave two-weeks
notice to go on strike over a salary dispute, in a move that threatens to
bring business in the country to a halt, the Zimbabwe Independent has
learnt.

The Zimbabwe Banks and Allied Workers Union (Zibawu), a union representing 5
000 employees in the banking sector, on Tuesday gave 14-days notice to
strike to the Bank Employers Association of Zimbabwe over an 80% salary
increment deadlock.
The workers are demanding an increment backdated to April amid massive
retrenchments that have resulted in at least 1 000 bank workers losing jobs
this year.

The strike action will impact heavily on the corporate sector whose
financial transactions are done through banks, as well as ordinary workers
who access their salaries through financial institutions. The 14-day notice,
which excludes Sundays, lapses on September 9.

The workers' union feels employers should increase the US$273 monthly salary
earned by the lowest paid shop-floor worker.

The fragile banking sector, which is emerging from a streak of confidence
loss during the hyperinflation era, grew bank deposits to US$1, 8 billion in
June from US$1, 36 billion last December. This translates to a monthly
average of US$72 million in deposits in the first six months of the year,
meaning that banks handled an average of US$3 million a day.

Apart from the financial cost of the strike due to loss in deposits and
payments from debtors, the industrial action could also inconvenience the
public, especially civil servants whose salaries are expected to be
processed at the time of the job action.

"The 14-day notice follows a deadlock that was declared at the National
Employment Council over cost of living adjustment negotiations for the
period April to June 2010," wrote Zibawu president Peter Mutasa in a letter
dated August 24.

Zimbabwe law dictates that workers intending to go on strike should notify
authorities two weeks before the industrial action.

"The Bank Employers Association has demonstrated lack of seriousness in
their approach to the negotiation process leading us to conclude that they
are not negotiating in good faith," the letter read. "They have shown
unwillingness to resolve the matter by refusing to have the matter referred
for compulsory arbitration arguing that this dispute is one of interest
(sic)."

When reached for comment yesterday, Earnest Chisi, chairperson of the Bank
Employers Association, referred all questions to the Bankers Association of
Zimbabwe (BAZ). Efforts to get a comment from BAZ president, John
Mushayavanhu, were in vain as his mobile phone yesterday rang unanswered.

South Africa headquartered Stanbic Bank this week said rising salary demands
were "negatively" affecting the bank's operations, a statement that suggests
an unlikelihood of any further increments. Staff costs for the bank more
than doubled to US$5 million in June compared to December 2009 figures.

"Operating expenditure was negatively affected by the high costs and
unsustainable utility bills," said Stanbic chairman Sternford Moyo in a
statement accompanying mid-year unaudited financials.

On the other hand, Barclays Bank, in its interim results published last
week, announced that 206 of its employees had so far taken up voluntary
retirement following a restructuring exercise.

"A few initiatives pursuant to this restructuring exercise will continue
into the second half," said Anthony Mandiwanza, Barclays chairman. The bank
also intends to dispose of its custody business in a move aimed at
streamlining operations.

BancABC reported that staff costs, which accounted for 58% of the group's
total expenditure, increased by 30% in Zimbabwe as a result of "market-wide
salary increases to unionised staff".

A growing discrepancy between lowest paid clerical staff and junior
management at a time when banks had increased service charges to remain
afloat has reportedly widened differences between banks and employees.

Rising bank charges in the liquidity-short market prompted Reserve Bank
chief Gideon Gono to advise banks to revise salaries and perks of management
arguing that bosses were "living like angels" with "utopian packages".

"The Central Bank has and continues to receive multiple genuine
representations from the banking public on the excessive bank charges that
are being levied by some banks, said Gono during the Monetary policy
statement last month.

"Under the current conditions of reduced general market liquidity,
shareholders, boards of directors and management teams in banking
institutions must have a frank re-look at their pay structures and other
overheads. The current scenario where bank management in some institutions
get paid and live like angels whilst their own financials are suggesting
otherwise cannot be sustained. The banking corporate and individual sectors
cannot therefore, be made to sustain utopia-style packages that do not
reflect the Bank's core income streams benchmarked on reasonable charges and
normal trading activities."

The central bank chief warned that should banks continue to charge high
services charges, the apex bank would be "dragged to the extreme points" and
prescribe limits on bank charges".

The International Monetary Fund, like the employers association, earlier
this year advised both the public and private sector to exercise wage
restraint, a recommendation that left downtrodden workers in both sectors
resentful.

Zibawu last embarked on a job action in 2008 when bank employees went on a
go-slow citing an unbearable cost of living triggered by the then
unprecedented economic meltdown.

Zimbabwe has a diversified banking sector comprising 26 banking
institutions, 16 licenced Asset Management Companies, and 95 operating
microfinance institutions under the supervision of the Reserve Bank.

Bernard Mpofu

 


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MDC-T protests to Sadc over ‘doctored’ communiqué

http://www.theindependent.co.zw/

Thursday, 26 August 2010 20:51

THE MDC-T has officially protested to the Sadc secretariat over the handling
of Harare’s political stalemate at last week’s summit and asked for
assurances that the regional body would ensure credible polls in Zimbabwe.

MDC-T spokesman Nelson Chamisa confirmed to the Zimbabwe Independent last
night that his party had officially communicated to the Sadc secretariat its
displeasure over alleged “doctoring” of the Sadc communiqué and the blocking
of debate on Zimbabwe in a full summit of leaders.
He refused to discuss contents of the letter which he said were
confidential.

The letter of protest by Prime Minister Morgan Tsvangirai’s party is the
clearest sign since the Sadc summit last week that regional leaders have
failed to meaningfully patch up differences between coalition government
partners.

Highly placed MDC-T sources said party secretary-general Tendai Biti
authored the letter, which he dispatched to Sadc executive secretary Tomaz
Salomao this week.

The party noted and demanded answers on three areas of concern in the
letter: the alleged watering down of the communiqué, the blocking of debate
on Zimbabwe in the full summit, and the implementation of a roadmap to free
and fair elections in Zimbabwe.

“Firstly, we are questioning the secretariat why it did not capture the
decision of the Troika (organ on politics, defence and security cooperation)
to put Zimbabwe forward for debate in the full summit of heads of state and
government,” one of the sources quoted the letter as saying. “We have also
questioned why the communiqué released at the end of the Summit omitted key
details of the facilitator’s report on Zimbabwe.”

The source said South African president and facilitator of the Zimbabwe
political negotiations, Jacob Zuma’s report and recommendations were adopted
by the Troika and it was clear on the way forward.

“Failure to capture details of this report and the curious omission of
debate on Zimbabwe by the full summit can only be interpreted as deliberate
and meant to shield Mugabe,” the source added. “Thirdly, we want Sadc to
explain how it is going to actualise the roadmap to elections and secure an
environment that will allow a pre- and post-election environment conducive
to a fair vote and acceptance of results arising from such a vote.”

Zuma presented a detailed report to the troika led by Mozambican President
Armando Guebuza ahead of the heads of state and government meeting.
The Sadc communiqué barely mentioned details of Zuma’s report, leaving the
MDC-T feeling cheated.

Biti was unavailable for comment yesterday.

He, however, said last week that although his party was happy that the
troika adopted Zuma’s report, the MDC-T felt the communiqué did not
adequately give effect to the report.

Zuma’s report noted that coalition government partners had agreed on a
30-day implementation matrix on 24 outstanding issues. The report cut a
roadmap for elections in Zimbabwe as the most viable way out of the
dysfunctional coalition government.

The roadmap includes the completion of the constitution-making exercise, a
referendum on a constitutional draft and the holding of a general election
that parties hope will produce a clear winner to avoid another coalition
government.

The Zimbabwe Independent reported last week how the Zimbabwe issue was
suspiciously blocked from the Sadc debate, resulting in the matter receiving
very little attention from heads of state and government. Diplomats told
this newspaper then that the matter should have been on the table for
debate.

A top Sadc diplomat last night said: “President Zuma briefed the organ on
politics, defence and security on the Zimbabwe issue and his report was
unanimously adopted. What was supposed to happen was that Guebuza should
have then briefed the summit and the leaders would have discussed the issue.

“But the Sadc secretariat blocked the issue on behalf of Mugabe and as a
result it was not fully discussed as it should have been.
“There was chicanery and as usual the Sadc secretariat was used to ensure
that the Zimbabwe issue was not fully discussed and proceedings on it not
fully reflected in the communiqué.”

Salomao last night said he was yet to see the letter because he was in
Angola and would only be back at his Botswana Sadc headquarters tomorrow.

Farai Mutsaka


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Only shareholders should resolve dispute — Meikles

http://www.theindependent.co.zw/

Thursday, 26 August 2010 20:36

MEIKLES Africa Ltd has written to Reserve Bank Governor Gideon Gono saying
only shareholders should resolve the dispute pitting its majority
shareholder, John Moxon, and Kingdom Financial Holdings (KFHL) founder Nigel
Chanakira.
Gono had given Chanakira and Moxon an ultimatum to resolve their dispute by
the end of August, threatening the two feuding businessmen with unspecified
action.
In a letter to Gono dated August 23, Meikles chairman Farai Rwodzi said his
board would adopt the wishes of its shareholders when the company holds its
Extraordinary General Meeting (EGM).
Meikles was blocked from holding an EGM by Gono and has not yet indicated
when it will hold the meeting to chart the way forward in its frosty merger.
Meikles said Chanakira, through his company Valley Field (Pvt) Ltd, had
presented three offers which they said were “off the mark” from the initial
agreement.
“In the event of an acceptable offer made before the EGM, such an offer will
be put to shareholders for approval,” reads the letter in part.
“Please note an offer can now only be accepted by shareholders. The board
will only adopt what shareholders would have agreed,” the letter said.
The EGM’s main business would be to amend the terms of the de-merger
resolution adopted by shareholders in June last year, which gave Chanakira a
chance to agree terms with Meikles and Econet Wireless Zimbabwe to acquire
the two investors’ equity interest in KFHL.
If shareholders give the nod, the Meikles board would proceed to de-merge
the two entities with Moxon maintaining his 43,9% stake in the group.
Chanakira would be a minority shareholder in Kingdom Financial Holdings Ltd
(KFHL) with a 6% stake.
Moxon would also be entitled to two board representatives as the single
largest shareholder in the financial services company.
Two weeks ago Gono and Finance minister Tendai Biti told Chanakira and Moxon
that they had “had enough of this nonsense” and warned that they would be
forced to take “drastic action”.
“We are not sure that either shareholders of Meikles or Kingdom will benefit
in the end,” Gono said in a local paper a week ago.
Chanakira could lose KFHL after Meikles Ltd recently rejected his offer to
buy its 43, 95% stake in the firm.
He had been given until August 6 to present an acceptable plan on how he
would raise US$15 million to buy Meikles out of Kingdom.
Meikles said Chanakira’s plan of action did not meet their expectations.
The banker had proposed to pay US$7, 5 million within 30 days while the
balance would be settled over six months, saying he had the backing of a
financial institution that he could not disclose to Meikles.
The Meikles board would not accept the proposal saying there was no
guarantee that Chanakira would pay up and that the bank would approve his
loan application.
Insiders at Kingdom yesterday said the KMAL saga had reached a stage where
the two opposing parties spoke to each other and the outcome now depends on
shareholders.
Analysts said RBZ had no formal or official role in the KMAL dispute.
Chanakira’s Kingdom Bank entered into a merger with Meikles to form Kingdom
Meikles Africa Ltd (KMAL) which also included Tanganda and Cotton Printers
in 2008.
The merger only lasted for 18 months after major differences between
Chanakira and Moxon emerged, leading to the proposed de-merger.
Gono said the dispute had ceased to be a Chanakira-Moxon matter as they were
jeopardising the stability of the banking sector at a time when the public
“will soon see the decisive resolution to all other outstanding disputes
involving Trust, Royal, Barbican and Intermarket banks as well as other
cases which may have involved allegations of externalisation of funds such
as Shabanie Mashaba Mine”.
He alleged both parties in the dispute should be reminded that “none of them
had absolutely clean hands to show to the public of Zimbabwe in terms of
historical conduct”.

Paul Nyakazeya


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Tomana dismisses MDC-T’s claims document

http://www.theindependent.co.zw/

Thursday, 26 August 2010 20:34

ATTORNEY-GENERAL Johannes Tomana has laughed off a document detailing close
to 200 politically-related murders submitted to him by Prime Minister Morgan
Tsvangirai’s MDC-T party.
Tomana  yesterday told the Zimbabwe Independent that he did not take
seriously the report by the MDC-T outlining 197 politically-related murders
of its members, which have not been investigated and taken to the courts
because his office was the wrong one to submit such a document to.
“Why are they disrespecting our systems?” he asked. “I will not be one of
those that will be in the forefront to bring the systems down. It shows that
they are not serious,” he said, adding that “it was not constructive for me
to give any credence to it”.
“It says (regarding) unreported cases, first you go to the police so that
they can carry out investigations. They are just mixing real issues with
politics.”
MDC-T sent a list in October last year of “unreported” murder cases which
were committed between April and December 2008 to Tomana asking him to
ensure that the cases were prosecuted.
According to the cover letter from the MDC-T’s department of security,
reports were made to the police, but references were allegedly not given to
the complainants.
“The police have not gone back to the informants or relatives to inform them
of levels of achievements in their efforts to deal with the  said matters
according to the law. There is nothing to indicate that investigations ever
took off,” read the letter.
The deceased, the letter read, were buried without undergoing postmortem  to
determine causes of their deaths and no death certificates were issued.
Tomana said it was not his duty to investigate the murders, but to wait for
the police to bring the dockets after investigations are completed so that
he can prosecute.
He said if MDC-T was serious about the matter, it should have followed the
proper procedures, first by reporting the murders to the police before
bringing the “unreported murder cases” to his office.
“It’s just politics and it’s irresponsible politics; they must come clean.
It’s like a love letter. Can I then go to court with that letter and say I
want to prosecute? Why does anyone think that you can skip the formal
structures that are in the constitution which receive reports and jump to
Tomana whose job is to prosecute; who is laying those rules?” Tomana asked.
“The lawful way is that I wait for the docket but if you have a problem with
investigations, the system must be given the opportunity to fail, that is
why we have a charge office, dispol (district police) and propol (provincial
police) and that is why we have the commissioner-general.”
He said although he has the powers to direct the police to probe a matter,
he could only intervene if the system has failed to investigate and bring
the offender to the courts.
“I deal with the commissioner if the system fails (but) the letter is not
telling me that the system has failed, but that they are unreported cases.
Instead of giving (it to the organ on) national healing, they are giving it
to me,” Tomana said.
However, a top MDC-T official said the police should not wait for a
complainant to report a murder case because by nature when such an offence
has been committed it is the police’s automatic duty to investigate.
“Tomana has failed. He should have just written to (Augustine) Chihuri
(Commissioner-General) asking him to look into the matter,” the official
said. “If a person dies of unnatural causes, it automatically becomes a
police case. The police have to investigate the murders without looking at
the deceased’s political affiliation.”
The official said Tomana, as the Attorney-General, has an obligation to
direct the police through Chihuri to investigate a crime.
“What does he mean that he can only intervene when the system has failed —
it has been more than two years now, isn’t that a clear sign that the system
has failed and he must intervene?” he said. “It is his duty to prosecute on
behalf of the state. So is he refusing to do his duties?” he said.
Tomana said political parties should formally acknowledge that they caused
the deaths of their members during the bloody 2008 election period, adding
that MDC-T should stop trivialising the matter by seeking political mileage
out of it.
He said the issue could only be resolved politically through a truth and
reconciliation exercise.
“Two political parties collided, certain people died in the process. When
people collide politically there is need to formally acknowledge the wrong
way that they are settling their disputes and there is need to formalise
this and bury it formally and legally,” he said. “That’s when you talk of
amnesty—this goes beyond national healing. It is the acknowledgement that
they killed each other. They are not telling the real story, but the
interest is not to seek peace but to cause collision. They must stand up in
parliament and acknowledge.”
He castigated the national healing programme for not being serious about
dealing with politically motivated cases of violence.
“Even national healing itself is fake. They are not ready to deal with these
issues and are not doing anything,” said Tomana.

Faith Zaba


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Families given 10 days to vacate diamond field

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:49

FORTY families from the Chiadzwa diamond fields and Mukwada villages in
Manicaland have been given a 10-day notice to leave their homes and make way
for Mbada Diamonds without compensation.
The villagers were given the notice on Wednesday by the District
Administrator's office and are expected to relocate to Arda Transau by
September 4.
Mutare West MP Shua Mudiwa yesterday confirmed the eviction.
"I have received a report of the relocation. Right now I cannot give you
much detail because I am at a Copac meeting. I will get to the bottom of
 it," he said.
Mudiwa said the villagers were promised groceries and school fees for the
next term by Mbada Diamonds.
"There was no written agreement, it was just verbal. They were told that if
anyone wanted further explanations they should go to the provincial or
district administrator or the governor."
Manicaland provincial governor, Christopher Mushowe, is on record as saying
the villagers would only be compensated after the relocations.
Acting President of the Chiadzwa Community Development Trust (CCDT), an
organisation that represents Chiadzwa villagers, Malvern Mudiwa, told
Zimbabwe Independent that villagers from Chiadzwa and Mukwada were not happy
with the way the relocation was being handled by the mining companies and
the government.
Mudiwa said: "The villagers are angry that the government is not consulting
them in these relocations. This time 22 villagers from Chiadzwa ward and 22
from Mukwada ward are being relocated by Mbada (Diamonds). Last Saturday
they were told that they should gather for a meeting at Zengeni shops for an
explanation but when they arrived for the meeting there was a bus waiting to
ferry them to Arda Transau so that they can have a look at the temporary
structures set up for them there."
"No compensation issues were discussed despite people requesting for
concrete written compensation agreements with the mining companies. They
also want to benefit from the diamonds and not be dumped on some useless
land. They want employment guaranteed for their children since they were
affected by the relocation."
CCDT also claimed that some villagers were complaining about the way they
were being treated by Chinese company Anjin in the area when they went to
seek employment.
Shamiso Mtisi of Zimbabwe Environmental Lawyers Association (ZELA) said the
government and mining companies should seriously consider providing
villagers with adequate shelter, compensation, social services and give them
adequate notice before they are moved.
"We are not happy with the issue of this notice. There is inadequate time in
their notices and the compensation issues will not have been agreed on. It
doesn't make sense. We are not in disagreement about the relocation but the
manner in which it is done."
"We are trying to engage the relevant government departments to respect the
rights of the people of Chiadzwa but it is very difficult," he said.
Mbada Diamonds chairman Robert Mhlanga could not be reached for comment.
However, earlier this month the Independent reported that families relocated
from Chiadzwa were dumped at an abandoned farmhouse where a number of
families affected by the relocation were living in disused tobacco barns.

Wongai Zhangazha


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Zanu PF power tussle chokes conservancy

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:48

POWER tussles between two rival Zanu PF factions are threatening the
viability of a wildlife-rich conservancy in Marondera after the party's
government ministers failed to evict supporters who invaded the animal
sanctuary this week, the Zimbabwe Independent has learnt.
Authoritative sources told the Independent yesterday that Wildlife and
Natural Resources minister Francis Nhema, Parks and Wildlife Management
Authority director-general Vitals Chadenga, and Campfire director Charles
Jonga visited Domersville Farm in Marondera on Wednesday to resolve the
issue, but failed.
Nhema had reportedly asked for the intervention of Mashonaland West governor
Aneas Chigwedere, the area legislator and Deputy Minister of Labour and
Social Welfare Tracy Mutinhiri and Zanu PF Mashonaland East chairman Ray
Kaukonde, to evict the invaders.
The scheduled meeting between Nhema, his delegate and the three provincial
leaders, the sources said, flopped after Kaukonde, Mutinhiri and Chigwedere
did not turn up as they allegedly viewed the eviction of the farmers as a
move to pursue Defence minister Emmerson Mnangagwa's agenda.
Kaukonde, Mutinhiri and Chigwedere are reportedly Vice-President Joice
Mujuru's allies in the deeply divided Zanu PF where Mnangagwa and Mujuru's
husband Solomon are rivals.
"Nhema's efforts to evict the families from the Domersville Farm were in
vain because his Zanu PF counterparts were not cooperative," said the
source.
The Zanu PF supporters occupied the wildlife rich Agos Farm, which is under
Domersville Ranch, threatening wildlife at Elderado, Imire and Matope Farms
in the province.
Government sources said wildlife farms invasions were a threat to the game
population with reports of settlers poaching the animals.
"We wonder why ministers from Mashonaland East did not support Nhema," said
the official. "It's sad that the ministers are playing politics instead of
addressing the issue with urgency. The invasions in Marondera must be
stopped."
Nhema, Jonga and Chadenga, sources said, approached the invaders to persuade
them to leave the property, but faced stiff resistance.
"The families who occupied the farm told Nhema and his delegation that they
were waiting to be allocated land by the Marondera district administrator,"
said the source.
Chadenga yesterday confirmed that he received reports of wildlife farm
invasions in Mashonaland East, but insisted that he did not see the settlers
during the visit with Nhema.
"We will monitor the situation and if necessary, we will deploy game
rangers," he said.
Domersville Farm boasts of plains game - zebras, giraffes, waterbucks and
impala.
Nhema yesterday confirmed that he visited Domersville Farm, but downplayed
the farm invasions, saying he was assessing a Campfire project.
The chaotic land invasions, which began in 2000 and were spearheaded by war
veterans, are blamed for the collapse of the agriculture sector.
Kaukonde could not comment as he was said to be in a meeting while
Chigwedere and Mutinhiri were not reachable.
The invasion of wildlife farms in Mashonaland East comes against the
backdrop of rampant poaching and looting at Denlynian and Tamari Wildlife
sanctuary in Beitbridge.
The land invasions have benefited Zanu PF supporters at the expense of
experienced white commercial farmers. Efforts by white farmers through the
courts to reclaim their properties have failed as President Mugabe's cronies
defy court orders.

Brian Chitemba


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Chihuri, ministers sued for police brutality

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:47

A MT Hampden woman is suing Police Commissioner-General Augustine Chihuri
and cabinet ministers for close to US$4 million as damages for the torture
she says she suffered at the hands of one of his officers.
The case brings to the fore growing cases of police brutality.
Shamiso Nziramasanga of Katosvora farm is suing the police and the
co-Ministers of Home Affairs Kembo Mohadi and Theresa Makone for severe
pain, suffering and discomfort after being assaulted by a policeman who
allegedly forced her to admit to theft charges last year. Nziramasanga
claims the torture happened at Mt Hampden police station.
Nziramasanga's case comes when High Court judge president George Chiweshe
will on Monday hear a case against four cabinet ministers sued by Mapfumo
Garutsa, a victim of state agents' abduction and enforced disappearance in
2008.
In papers filed with the High Court, Nziramasanga said so severe was the
torture that it affected her then four-month pregnancy.
Nziramasanga says she handed herself over to the police after hearing that
some officers were hunting her down on July 18  last year, and was shocked
and traumatised by the torment she received from one Constable Bako, whom
she cites as the third defendant.
"Third defendant (Bako) advised plaintiff (Nziramasanga) that he wanted to
assault her to make her confess. Plaintiff then expressly advised third
defendant that she was four months pregnant and that any assault he
perpetrated upon her risked harming her unborn child," reads Nziramasanga's
affidavit.
"Third defendant nevertheless proceeded to assault plaintiff under her feet
and all over her body. He further assaulted her on her womb. Third defendant
then detained plaintiff for several hours before ordering her to go home and
come back the following day."
Nziramasanga, who is represented by Zimbabwe Lawyers for Human Rights,
claimed that Bako threatened further harm if she sought medical treatment.
"Plaintiff initially complied out of fear but was in such pain that a few
days later she went to a clinic from where she was referred to Parirenyatwa
Hospital where she eventually received treatment," read the court papers.
"Plaintiff was in pain from the date of the third defendant's assault upon
her through to her giving birth. On November 16 2009 plaintiff gave birth to
a son who was in a very weak condition due to the fact that plaintiff had
suffered injury to her womb as a result of the third defendant's assault
upon her. The child passed away on the 17th of November 2009. Plaintiff's
womb was in such a serious condition that it had to be removed and she can
no longer bear children."
According to a medical report by a doctor indentified in court papers only
as Magwali of Mbuya Nehanda Maternity Hospital, Nziramasanga was admitted at
the hospital on November 14 2009.
"Physical examination revealed signs of a ruptured uterus. She was not in
labour at the time of admission. She underwent an operation on the evening
of 14 November 2009 at which the uterus was found to be ruptured and the
baby was dead. It was not possible to repair the uterus so an operation to
remove the uterus was done," said Magwali.
Nziramasanga is claiming US$2 million for pain and suffering, US$1 million
for injuries she suffered  due to the assault by Bako, payment of US$500 000
for unlawful unrest and detention, US$65 for medical expenses  and US$5 000
for property and cash taken by Bako.

Wongai Zhangazha
 


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Zanu PF politburo refuses co-option of Nkomo allies

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:47

THE Zanu PF politburo has declined to co-opt into the central committee
perceived allies of Vice-President John Nkomo, as power politics in the
party continue to rock Matabeleland.
A politburo meeting held last week ordered fresh elections to fill central
committee vacancies for Bulawayo after rejecting seven names forwarded by
Isaac Dakamela, the provincial chairman.
Former Bulawayo mayor Abednico Nyathi, Dennis Ndlovu, Misheck Velaphi,
Elphus Tshuma, former Zanu PF Bulawayo provincial commissar Raphael Baleni,
Nelly Dupute and Violet Ncube were supposed to have joined the powerful
central committee, but were rejected after the intervention of party
chairman Simon Khaya Moyo.
This was the second time that the politburo has rejected names forwarded for
the remaining central committee positions. The central committee is Zanu PF's
decision-making body and members are elected by district coordinating
committees.
Sources attribute this to the tussle for power involving Nkomo, party
chairman Simon Khaya Moyo and Mines and Mining Development minister Obert
Mpofu, all of whom are fighting for influence in the region.
Sources said Dakamela had drafted the rejected list with politburo secretary
for education Sikhanyiso Ndlovu and secretary for youth affairs Absolom
Sikhosana, Nkomo's close allies in the region.
Dakamela confirmed that the politburo ordered fresh elections to fill seven
central committee vacancies to add to 14 people chosen in December last
year.
"We were told after the politburo meeting that we should choose new members,
not the original list that we had forwarded," Dakamela told the Zimbabwe
Independent this week. "The Bulawayo provincial coordinating committee will
meet soon to choose new members."
He said a circular sent to him stated that the names were thrown out because
some of them were not veteran politicians.
Didymus Mutasa, Zanu PF secretary for administration, this week downplayed
the issue when approached for comment on whether power struggles were behind
the development.
"Some of the people on the list have been in the central committee before
and it's a matter of correcting one or two issues. It's not a big issue," he
said.
Party sources said Moyo led the politburo in rejecting the names.
Zanu PF insiders said the rejected members were victims of a bitter power
struggle, as senior leaders position themselves for ascendancy in the wider
Zanu PF succession fight.
Moyo's move in the politburo, sources said, was a way of hitting back at
Nkomo, who recently played a part in barring members aligned to the party
chairman from joining the central committee.
Nkomo opposed the election of Bulawayo war veterans' leader Themba Ncube,
former Bulawayo councillor Emmanuel Kanjoma, businessman Charles Chiponda,
Anna Moyo, Sifelani Dube, Otilia Pasipanodya and Emily Hela.
After blocking their endorsement, Nkomo's faction, led by Ndlovu then
crafted its own list, which Moyo blocked last week.
The sources said Moyo, the former ambassador to South Africa, argued that
Bulawayo province failed to follow procedure in coming up with the new
names.
Moyo could not be reached for comment at the time of going to press.

Brian Chitemba


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Poll reforms: Chihuri’s reputation defeats cause

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:45

THE devil, walking around with a bible and asking people to close their
eyes, kneel and pray, always raises scepticism even among hardcore
Christians.
Such a scenario faces Zimbabwe today.
Police Commissioner-General Augustine Chihuri, a man accused of choking
juniors into voting for President Robert Mugabe in the 2008 elections, has
proposed alternative reforms that would allow police officers to continue
enjoying the privilege of postal voting.
Chihuri recently wrote to the co-Ministers of Home Affairs Kembo Mohadi and
Theresa Makone opposing electoral reforms agreed to by coalition government
partners.
Part of the reforms, aimed at stemming rigging, would  require police
officers to vote just two days before an election, a move taken to minimise
abuse of the postal voting system.
The reforms also bar the police from sitting in polling stations, a
situation Chihuri says compromises security. The Attorney General’s Office
is crafting a new Electoral Law Amendment Bill for tabling before parliament
to effect reforms agreed to by the coalition government principals.
“Almost all of our officers would have to be granted time to go and exercise
their vote in the single day provided. As to who will secure essential and
strategic installations, let alone man stations, bases and posts is a
mystery,” argued Chihuri is his letter asking for a revision of the reforms.
“There will be no one to attend to reports as well as no one to carry out
patrols as there will be a criss-cross of police personnel traversing the
length and breadth of the country to exercise their right to vote.”
Because police officers are regularly transferred, most register to vote in
their home constituencies. Yet, as matter of police policy, they are
deployed away from their provinces of origin, making it almost impossible
for them to travel to vote and return to their bases without leaving a
security void, argued Chihuri.
“This is tantamount to taking away the constitutionally provided right of
suffrage from the members of the police,” said Chihuri, also arguing that
banning officers from polling stations meant little reaction time in cases
of skirmishes.
Commentators say Chihuri’s past has clouded his arguments, no matter how
plausible.
Electoral watchdog groups such as the Zimbabwe Election Support Network
(Zesn) question the police boss’ sincerity to peace and security. They say
his force has been fingered not only in election rigging but in cases of
violence, torture and selective application of the law to tilt the electoral
environment in Zanu PF and Mugabe’s favour.
A former top police officer who worked closely with Chihuri accused him of
being at the forefront of election fraud in previous plebiscites.
Emmanuel Chimwanda, who has commanded the police in Harare and Masvingo
provinces, said Chihuri’s proposals could still be used to rig elections if
no proper security sector reforms were carried out as dictated by the global
political agreement.
“In a country where there is no election fraud, nothing is wrong with the
postal ballot. But is Chihuri the right person to make such proposals? Where
there is smoke, there is fire,” said Chimwanda.
Chimwanda was frustrated out of the force after pursuing war veterans led by
their late militant leader Chenjerai Hunzvi who had unleashed violence in
Bikita to coerce villagers to vote for Zanu PF in 2001.
“It is difficult to trust Chihuri. It’s highly questionable why Chihuri
wants police to be involved in the voting process. It could be part of a
Zanu PF plot to rig the polls,” said Chimwanda.
Debate on elections has swelled after coalition government partners Mugabe
and Prime Minister Morgan Tsvangirai hinted that polls should proceed next
year to break their power sharing logjam.
Zesn chairperson Tinoziva Bere told the Zimbabwe Independent that any
reforms that protected the rights of junior police officers to vote freely
should be supported.
The human rights lawyer said the coalition government should clip Chihuri’s
wings to close gaps that could be used to rig polls. He said the scrapping
of postal voting would promote transparency.
“There have been deep concerns over how the police vote and that should
change,” said Bere.
Police have come under the spotlight for intimidating Mugabe’s political
opponents in a bid to keep Zanu PF in power. Human rights organisations also
accuse the police of failing to take action against known Zanu PF supporters
and officials who perpetrated the 2008 election violence that Tsvangirai
says left over 200 of his supporters dead.
Tsvangirai’s MDC-T party still complains that the lack of security sector
reforms has resulted in the police continuing to behave as an extension of
Zanu PF’s militia despite the formation of the coalition government.

Brian Chitemba


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Time bank prejudiced of US$30m — Tande

http://www.theindependent.co.zw/

Thursday, 26 August 2010 18:43

VITAL information was stolen from Time Bank when it was under curatorship,
prejudicing the financial institution of US$30 million, a senior bank
official has said.
Besides the theft, the bank claimed that the financial institution’s central
computer system at its Anchor House headquarters in Harare was tampered
with.
The commercial bank was placed under curatorship by the Reserve Bank of
Zimbabwe for 18 months since October 2006. It was subsequently deregistered
after the curatorship, a decision the bank management successfully
challenged in the Administrative Court last year. Finance minister Tendai
Biti recently upheld the decision of the court and the bank is expected to
open its door to the public in October.
In a voluminous letter of complaint to Police Commissioner-General Augustine
Chihuri dated May 28 in possession of the Zimbabwe Independent, Time Bank of
Zimbabwe Ltd founder and MD Christopher Takura Tande accused the police of
dragging their feet on the two cases involving the theft and break-ins at
the bank.
The letter was copied to senior police officers, the Attorney-General’s
Office, the Anti-Corruption Commission and the Zimbabwe Human Rights
Commission.
Tande said key data, including sealed envelopes containing security codes
and a register of the password holders, was stolen during the break-ins
while the suspected perpetrators have not been brought to justice.
“The handover/takeover (between RBZ and Time Bank) report revealed that
there were major break-ins into the locked premises of Time Bank,” wrote
Tande. “Cases of theft of information and evidence of fraud, among other
things were uncovered. It was further discovered that some important keys
for Time Bank premises were missing, while some keys which were supposed to
be in the custody of RBZ were found inside the premises of Time Bank.
Various footmarks were discovered and noted.”
Tande added that passwords to the bank’s central computer system, sealed
envelopes containing security codes, and the register of the password
holders were also  missing.
Ironically, Tande alleged that while police had turned a blind eye to the
break-ins and theft, counter charges by suspects in the cases were allegedly
being treated with “great zeal”.
He wrote: “The pattern which is emerging is that whenever Time Bank makes a
report to the police, it is not actioned, but when someone makes a report
against Time Bank, its directors and shareholders, the police are quick to
act, arrest or detain us. As a result we are left with no option except to
lodge this complaint.
“We do not wish to stop the police from investigating us but we are
requesting for fairness in such investigations. In the interest of justice,
the cases against us should be investigated by different policemen other
than Superintendent Marodza, Detective Assistant Inspector Nyoni and
Detective Assistant Inspector Taruvinga of the Serious Fraud Section. Not
only should justice be done, it must be seen to be done.”
He also alleged that keys that were supposed to be in the custody of the
former curator Tinashe Rwodzi of Pricewaterhouse Coppers and the RBZ had
mysteriously appeared in the bank after the alleged break-ins.
“The former curator said he had all the keys to Time Bank premises during
the period of curatorship from 27 October 2004 to June 2006, and thereafter
he handed over all such keys to certain officials of the RBZ for custody and
safe keeping,” wrote Tande. “Time Bank officials have not accessed their
offices, since 27 October 2004. The curator said he never entered after the
curatorship on 30 June 2006. The RBZ officials also allege that they did not
access Time Bank after the end of curatorship on 30 June 2006. The question
is who left the keys inside the premises of Time Bank and where are the keys
and our computer passwords. What was the motive of breaking into the Bank?”
Tande suspected that former ZBC boss Onias Gumbo and unnamed RBZ officials
could be behind the theft of crucial data that could prejudice and retard
the transfer of the bank’s assets. He said the bank was investigating Gumbo
for allegedly planning to dispossess it, its shareholders and directors of
their properties through “fictitious claims and malicious allegations”.
“He (Gumbo) is either working with some officials of RBZ or he is
misrepresenting them by name-dropping in order to further his fraudulent
claims,” Tande alleged.
Tande and his business associates are embroiled in a bitter  ownership
wrangle over companies with Gumbo. Accusations and counter-accusations
between Tande and his business associates on one hand and Gumbo on the other
have been reported to the police.
Gumbo is currently appearing in court on a fraud charge involving ownership
of Unitime –– a company owned 50% by a close business associate of Tande ––
Antony Parehwa.
Tande told Chihuri that following litigation by Takta Investment (a company
he owns) against Gumbo’s companies two years ago, the latter, through an
opposing affidavit,  “revealed information which implicated him and other
people” in the break-ins at the bank.
Takta then sued Assetfin –– a company linked to Gumbo –– in order to stop it
from interfering with its housing development project.
However, Gumbo, according to the letter to Chihuri, “accessed confidential”
RBZ-compiled reports from an “undisclosed source” and “fabricated them” to
put a claim on the bank’s assets. Tande suspects that the transfer of the
bank’s assets back to the bank almost hit a snag when the RBZ said the
exercise should be “symbolic without full accountability” contrary to Time
Bank’s recommendation for a normal check-listed handover-takeover.
The central bank, Rwodzi and the bank officials, according to the letter,
eventually agreed on a normal handover, which was finalised on June 22.
“The handover/takeover report also revealed that there were no audited
financial statements prepared during the period of curatorship as required
by law, and which are also necessary to verify and expose any malicious
allegations against the bank and its directors,” Tande said. “Fortunately,
Time Bank was audited before curatorship and can verify financial
transactions of the pre-curatorship period.”
On Monday, Tande told Harare magistrate Olivia Chiriga during the fraud
trial of Gumbo that he was neither a brother in law nor his relative. He
also said Gumbo was not a director of the bank.
Instead, Tande said, Gumbo was a net borrower from the bank who relied on
loans from the financial institution to bankroll his projects.
The court went into stitches when defence lawyer Wilson Manase insisted that
Gumbo was related to Tande who reacted by saying: “I have chosen to use
English in this court, and what you are saying about the meaning of
brother-in-law is different from that in the Oxford dictionary. According to
that dictionary, Gumbo is not my brother in law.”
Tande said Section 35 of the Banking Act “protects bankers from abusive
borrowers like Gumbo, from misleading the Reserve Bank into thinking that
the loans to Gumbo’s companies are insider loans which should be deducted
from the share capital of the bank.”
Tande told the court that his company bought all the shares in Unitime
Investments (Pvt) Ltd from Pamela Matingo and Gumbo’s co-accused Kwaziso
Bhosha and sold them to Parehwa. The banker denied ever being a joint
shareholder with Gumbo in Unitime.
He also testified on the unlawful entry into Time Bank and theft of vital
information.

Bernard Mpofu


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‘Punitive bank charges discourage savings’

http://www.theindependent.co.zw/

Thursday, 26 August 2010 17:55

LOCAL banks are milking account holders through high charges to boost their
income and support the infrastructure they put in place when the economy was
faring better.

Individuals and corporates are forking out between US$25 and US$50 monthly
in bank charges, far above regional averages of below US$30.
But the Bankers Association of Zimbabwe Baz says local bank charges are in
line with regional charges. Figures obtained by businessdigest from local
banks last week show that an individual is charged between US$1 and US$5 for
a single withdrawal while companies pay up to US$9 to be issued with a
draft/RMO.
Telegraphic transfers cost between US$15 and US$30 for both corporates and
individuals depending on the amount involved. The same amount is charged for
deposits received by telegraphic transfer.
Asked if local bank charges were not too high when compared to the region,
Bankers Association of Zimbabwe (Baz) president John Mushayavanhu said local
charges where competitive.
“As Baz, we have done a study of bank charges in the region and overseas and
I can confirm to you that our charges are very comparable to the charges
prevailing in the region,” he said.
“What we are focusing on now is continuous investment in electronic banking,
which reduces cost. On interest rates charged by banks, we are working,
through moral suasion within the association, to reduce the disparity on
interest rates being offered and/or charged by banks.
“This will go a long way in minimising the underlying contagion effect of
arbitrage opportunities associated with the disparity,” Mushayavanhu said.
Local banks are also charging as much as US$15 for a single deposit.
The average regional charge for the same transaction is US$7.
Some banks are not charging for maintaining clients’ accounts, but others
are levying US$3.
Corporates are being charged between US$8 and US$12 per month for monthly
account maintenance. FCA inter account transfers cost between US$1 and US$5
depending on the bank for both individuals and corporates.
Service charges for salary processing tariffs cost between US$1, 50 and US$4
per entry for manual salary payments. Unclaimed salaries cost between US$4
and US$7.
Companies are being charged between US$7 and US$10 per payroll for late
salary submissions.
Most banks have not set a charge for intermediated money transfer tax.
Facility negotiation fees for companies cost 5% of the value of the
overdraft or loan. Between US$4 and US$8 is charged for stop orders.
Economist David Mupamhadzi on Tuesday however told businessdigest that  bank
charges in Zimbabwe were punitive, and discouraged people from using formal
channels for savings,  a situation that is undesirable especially given the
liquidity problems that the economy is facing.
“Banks should play a leading role in mobilising savings across the whole
country through offering attractive returns, however in the case of Zimbabwe
this is not happening because of the high bank charges and the low returns
on deposits,” he said.
“Most banks in the region do not use bank charges as a main source of
income, a situation which is prevalent in Zimbabwe. In South Africa for
example high bank charges are levied on people who withdraw huge amounts of
cash, as a way of discouraging people from withdrawing huge amounts of
 cash,” Mupamhadzi said.
He said people were encouraged to use internet banking and plastic cards
instead of carrying cash because of the high rates of crime.
“The high bank charges are not justified. There is need for the banks to
restructure their business models in line with the reality on the ground.
There is no way banks can maintain the same infrastructure, and staff, in
this current environment as they had a few years ago,” Mupamhadzi added.
He said instead of doing “cosmetic adjustments, there is need for banks to
take tough decisions on issues like infrastructure, number of employees and
benefits, in light of the volume of business”.
“There is need for banks in Zimbabwe to diversify their sources of income,
than relying on the bank charges to carry their high operating costs,” he
said.
He said the proposed use of e-banking was a step in the right direction, and
is in line with developments in the region and beyond.
Accounts closed within six months are attracting a fee of between US$18 and
US$25, while reactivation of a dormant account costs between US$20 and
US$25. Services for bonds guarantees, securities and indemnities and bills
range between 5% and 10% of the amount at hand.
Charges for letters of guarantee, and guarantees are between 4% and 6% of
the amount involved. Letters of credit for foreign inward cost US$75 per
credit. Foreign outward for commercial banks cost 10% of the amount being
transacted.
Farayi Dyirakumunda, an executive director of African Investment Markets
said, “Banks typically derive their income from a combination of interest
income as well as non funded income which includes bank charges.”
“The charges are somewhat justified given the cost structures prevailing in
the banking institutions,” he said
“Given the subdued income from the core lending activities, fees and
commission income have been maximised to boost overall profitability but
this will gradually correct itself in response to market forces and
technological advances. Fees and service charges will however remain an
integral part of all banking institutions’ income,” said Dyirakumunda.
Bankers interviewed last week said banks were currently making money from
loan portfolios but given the uncertainty in the deposits levels, they were
becoming prudent by writing smaller percentages of loans so as to manage the
liquidity risk.

Paul Nyakazeya
 


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Van Hoog rekindles love for RTG

http://www.theindependent.co.zw/

Thursday, 26 August 2010 17:48

HAS Nicholas Van Hoogstraten found new love with the Rainbow Tourism Group
(RTG) yet again?
It appears the RTG majority shareholder has re-organised his shareholding in
the group and increased it after the group announced that it was
refurbishing its hotels and lodges, constructing a new hotel and building
750 additional rooms.
Van Hoogstraten had indicated that he was selling part of his shareholding.
Rainbow Towers Hotel is being refurbished. A 'Zambezi River lodge has also
embarked on refurbishment and product upgrade from a three-star property to
a four-star one targeted to be complete by May 2011, while a hotel is being
built in Beitbridge.
RTG is also planning to refurbish Bulawayo Rainbow, although not as
comprehensively as Harare and A 'Zambezi.
As of Tuesday, Van Hoogstraten held about 554 million shares in RTG,
representing 35% of the total issued share capital of the company. He has
re-registered them through Les Nominees, now with 18,23%, Zimcor
Limited -12,67%, Hamilton Nicholas Rhodes -1,01%, Hamilton Alexander
Sethi -0,61%, Hamilton Maximilian Rhett -0,62% and Hamilton Orrie
Lincoln -0,62%.
Van Hoogstraten's vehicles are managed by Harare businessman Frank Tawanda
Buyanga.
This is the route that Van Hoogstraten - the single largest investor on the
stock exchange - often takes when he is about  to dispose of his shares in
companies or consolidate  shareholding in anticipation of higher earnings.
Van Hoogstraten could face stiff competition from Econet boss Strive
Masiyiwa and AFRE Chief Executive Officer Patterson Timba, who jointly hold
31, 55%. Timba is also chairman of RTG.
Their shareholding is packaged as follows: Afre Corporation Ltd -8,75%, EW
Capital Holdings Ltd - 6,78%, First Mutual Life -Policy Holders -6,64%,
First Mutual - Managed Fund -4,87%, E W Capital (Pvt) Holdings Ltd -2,89%
and FML Reinsurance Property -1,62%.
Announcing the company's interim financial results last week on Thursday,
Group CEO Chipo Mtasa said the group was embarking on an expansion and
refurbishment programme that was attracting a lot of investor interest.
Speaking to businessdigest on Tuesday, Mtasa said there had been changes in
RTG's shareholding following the new shares that were issued this year.
"Van Hoogstraten grabbed all the shares; he is the major shareholder of the
group. With tourism coming back to Zimbabwe, he must have decided to invest
more in the group," she said.
Analysts said Van Hoogstraten, who had been failing to get "his people" on
the RTG board, should be prepared to take Masiyiwa and Timba head on if he
is to have his way.
"It is not debatable that tourism is coming back to Zimbabwe and mostly for
RTG. It is only the pace that could be debatable and it explains why there
is so much interest in the company," Mtasa said.
She said RTG was tapping into international and high yield markets to drive
volumes up.
"We are re-launching our product on the international market. We are
targeting Japan, France, Russia and parts of China," she said.
During the period under review RTG's turnover increased to US$10,5 million,
representing a 67% growth compared to the same period last year, owing to an
improvement in room occupancy rates.

Paul Nyakazeya


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New era for Zim motoring industry

http://www.theindependent.co.zw/

Thursday, 26 August 2010 17:46

JAGUAR Land Rover last November returned to Zimbabwe following the signing
of a dealership agreement with Premier Auto Services (PAS) that paved way
for the return of Land Rover vehicles to the country.
The deal was described as a new era for the Zimbabwe motoring industry.
Under the dealership, PAS will import and sell complete vehicles and provide
back-up service locally. Other aspects of the agreement will see the
extension of the franchise, enabling PAS to sell branded Land Rover goods in
their outlets.
This week businessdigest chief business reporter Paul Nyakazeya (PN) spoke
to PAS Business Development director Cosmas Marimo (CM) on their operations
and the motoring industry in general.

PN: Your recent acquisition of the Jaguar Land Rover franchise pre-supposes
that a number of high tech diesel and petrol-engine vehicles will be
imported.  How will these vehicles cope with the fuels available in Zimbabwe
given that there is apparently no local legislation to define the octane
rating of petrol and the sulphur content of diesel?
CM: Prior to our landing the importer status, we acquired detailed
documentation from most of the reputable international oil companies
operating in Zimbabwe, on the quality of fuel available on the market. It
was concluded that the locally available fuels were within acceptable norms.
You must also agree with me that we do not produce our own fuel, but import
all our fuels either through Mozambique or South Africa. On the other hand,
these are very robust engines and our advice to customers is to carry out
regular scheduled maintenance to avoid contamination.
PN: The issue of unleaded petrol is also wholly relevant as failure to use
this fuel will be detrimental to modern vehicles. How will you handle this?
CM: As a country we have made strides towards rectifying these fuel issues.
For instance we are made to believe that all the petrol coming through Beira
is unleaded and that there are mechanisms to ensure compliance. We are also
aware of government initiatives to enforce the use of unleaded fuel since
2006. High sulphur diesel has also been 'banned' in Zimbabwe.
You can clearly see that as a country we had prepared adequately for the
coming of the Jaguar. However, our discerning motorist should always be
vigilant and guard against buying low quality fuel.
PN: Will manufacturer-based warranties and service plans be available  to
Zimbabwe customers?
CM: Premier Auto Services (Pvt) Limited is the only authourised / accredited
Jaguar importer in Zimbabwe and is fully authorised and capable to handle
all warranty issues.
On the other hand, I am sure you see facilities in the banking sector
opening up, credit becoming available and so on. I am sure it will not be
long before you see enough support coming through to cover service plans.
You see lease hire arrangements creeping back in already.
PN: Will the warranty be conditional on proof of use of an approved Jaguar
Land Rover service centre in the event of any claim being lodged?
CM: For any warranty claim to be valid, one has to use an accredited service
centre. These vehicles now require TLC (tender loving care) and we need to
ensure that they receive attention from properly / sufficiently equipped
facilities and trained technicians.
A service booklet is supplied with every car and authorised service centres
stamp them at each service.
PN: It was obviously a requirement that you invested in the latest
diagnostic equipment for your two new brands. Do you have the requisite
equipment and staff know-how from Jaguar Land Rover?
CM: Yes we have invested modest amounts in the infrastructure, equipment and
human capital. The latest diagnostic equipment -- Symptom Driven Diagnostic
(SDD) and Integrated Diagnostic Systems (IDS) -- have already been acquired
and being used in our workshops. Software and programmes on this equipment
are updated three times a week and we are confident that we are always
abreast of any changes or developments.
The technicians have been well trained as well as seconded to regional and
overseas dealerships. Training, of course, is on-going and all technicians
have access to internet- based training as well.
PN: What are the advantages of using this diagnostic equipment?
CM: The one upside is that this equipment is the only means of effecting any
sort of diagnosis on the vehicles. The SDD and IDS leads us to pin point
faults as well as display the faults and rectify them. What effectively was
a long process of guesswork in the past is narrowed down to a quick
resolution by using IDS and SDD.
PN: Given the relatively low volume of sales that can be expected in
Zimbabwe, how will you handle the supply of parts for the two brands?
CM: We have actually got stock on the shelf already and we are always
updating our stock  fortnightly. Remember there are ageing Jaguar units in
Zimbabwe already and we have started supporting them through our workshop.
You will actually be surprised at the vehicle park in Zimbabwe; these
vehicles are not actually very few.
PN: Obviously high value parts can not be kept sitting unsold on shelves, so
what sort of delay will your customers face when parts have to be ordered
from outside?
CM: We are confident that we are building sufficient stocks of parts and
anticipating flows through the parts counter and the workshops. However, in
situations where we have to order against an enquiry, we have entered into
an arrangement with regional and overseas partners to have urgently needed
parts couriered to us within five to seven days.
PN: In the event of delays, will customers with cars under factory warranty
be offered courtesy vehicles as what commonly happens in established
markets?
CM: The Jaguar brand demands world class service, we have had to invest in
the best for the best. This is definitely one issue we are looking into as a
way to exceed our customers' expectations.
PN: Modern engines demand modern, purpose-formulated lubricants. What will
PAS (Premier Auto Services) be doing to comply with manufacturer specs in
this regard?
CM: I am glad that you asked this question and I know it is mainly targeted
at the 5,0l supercharged engines. Yes we have imported the special
lubricants for these high-performance engines. The overseas  international
suppliers of these lubricants are represented here in Zimbabwe and
procurement is now within arms' reach.

By Paul Nyakazeya


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Brett Chulu: Zim corporate governance: The business case

http://www.theindependent.co.zw/

Thursday, 26 August 2010 17:45

TWO weeks ago, Jon Younger, Dave Ulrich, two of human resources' leading
minds and I engaged in a passionate discussion over the concept of
'organisation capability', the brainchild of Dave.
Organisation capability is what an organisation is known for, what it is
good at. For customers, organisation capabilities become the brand they
experience; for the investor, they are the intangibles that give them
confidence in future earnings; for the employee inside the company they are
the desired culture. Obviously, the implications of this concept are
profound since organisation capabilities connect the internal customers to
the external customers. By delivering on organisation capabilities,
customers and investors will keep signing cheques over to the firm.
Organisation capabilities are the deliverables of HR, transfoming HR from
being a mere cost centre to a profit centre.
Theory without practice is useless. We need to illustrate organisation
capabilities in practice. There are over 14 capabilities. We will consider a
few. Charity begins at home. A careful analysis of Econet shows that its
phenomenal success rests on three capabilities namely: talent, learning and
shared mindset. Talent as an organisation capability means: we are good at
and known for attracting, retaining and motivating competent and committed
people.
The organisation capability of learning means: we are good at and known for
generating and sharing ideas with impact. Shared mindset as an organisation
capability means: we are good at and known for making sure our external
customers (investors and customers) and employees have a positive experience
with the company.
To illustrate further, we will look at Econet's learning capability in
brief. Econet is good at benchmarking (comparing best international
standards), be it communications technology or store layout and
intelligently adapting these. It explains largely why Econet is almost
always first to the market with the latest technologies. South African
telecommunications giants are still struggling with the 3G technology while
Econet has already introduced the 4G technology. Of late, due probably to
its on-going network upgrading programme, the shared mindset capability is
weakening, judging by the frequency of customer complaints over service.
Back to my discussion with the two HR fundis. I pointed out that in their
latest work on capabilities, corporate governance was not mentioned. I had
felt that corporate governance should be a key capability. Younger and
Ulrich concurred with me that indeed corporate governance is a key
capability. They pointed out they had spread aspects of corporate governance
into capabilities such as risk (we are good at and known for anticipating
and managing disruption, predictability and variance) and speed capability
(we are good at and known for making important changes fast). The discussion
led me to launch into a full research on the relationship between corporate
governance and finance.
We shall define corporate governance as an organisation capability: we are
good at and known for making and implementing decisions that ensure the
long-term success of the business. We will proceed to look at some studies
on the relationship between corporate governance and investment.
According to a paper from the Norwegian School of Management titled
Corporate governance and real investment decision firms that are
well-governed have a higher probability of making investments, have higher
market to book ratios (investors willing to pay higher share prices share
compared to current after-tax profits per share) and better access to
outside financing.
The Deutche Bank studied Standards and Poor 500 firms and found that over a
two-year period firms with improving corporate governance outperformed those
that did not by an average of 19%.  In a paper written by the financial
giant ABN/AMRO titled Corporate Governance in Brazil: Is there a link
between corporate governance and financial performance in the Brazilian
market?' revealed that in 2004, firms based in Brazil, with higher corporate
governance rankings received price-to-earnings ratios that were 20% higher.
Price- to-earnings ratio, also known as P/E simply shows how many times the
current share price is bigger than the current after-tax profits per share
(earnings per share).
Normally, the higher the P/E, the more confident investors are that the firm
will in future continue to produce good after-tax profits. They show this
confidence through buying the shares now to ''book'' for a portion of the
anticipated growth in earnings.
A paper published in the Journal of Corporate Finance titled  Predicting
Firms' corporate governance choices: Evidence from Korea showed that Korean
(South) firms perceived to be properly governed had share prices trading at
a premium of 160%.
This means investors were willing to pay 2,6 times the actual worth of the
shares of well-governed South Korean firms. The Mckinsey and Company 2002
investor opinion survey shows that for every 10 respondents eight would pay
a premium for the shares of a firm with strong corporate governance
practices. The premiums averaged 20-25% in Latin America and Asia, with the
highest premiums in the study recorded for Eastern Europe and Africa at 30%.
The distribution of premiums is telling. African firms that move to
strengthen corporate governance stand a better chance of attracting investor
funds. Here is hoping Zimbabwean firms are paying attention.
I could have given study after study showing beyond contest that good
corporate governance attracts investment into the company. Three lessons for
the Zimbabwean corporate arise from these empirical studies.
First, when Zimbabwe's national political and economic environment improves
investor dollars will flow in. However, only those organisations with strong
corporate governance practices will receive a meaningful share of the
investment inflows. Minister Gorden Moyo made a profound statement as
reported in the NewsDay when he said that 60% of the problems of state-owned
enterprises would dissolve by simply improving their corporate governance
practices and further said that ''it does not cost a cent'' to adopt good
corporate governance practices.
Second, firms do not need to be cajoled to adopt good corporate governance
practices. On the back of the overwhelming evidence, adopting good corporate
governance practices should be an automatic business decision. It saddens me
when firms have to wait for a national code of governance and statutory
instruments to begin to take action to practice good corporate governance.
Third, HR as business leaders in Zimbabwe needs to sell the idea of
corporate governance as a key organisation capability. Lack of cash is a
serious business challenge at present. A preliminary study I am doing on the
extent of liquidity challenges in Zimbabwe shows that for the half-year
ending June 30, listed firms are struggling to generate enough cash from
their operations to fund taxation and debt-servicing. One listed firm with a
very high P/E ratio generated negative cash flow from its operations.
Luckily, for the said firm to survive the first six months, cash generated
from last year is being used.
To survive, Zimbabwean firms have no choice but to adopt corporate
governance as an organisation capability. Competiveness is not strategy.
Competitiveness = strategy x organisation. Organisation is not structure.
Organisation is capability. That is the new HR's speciality.
Telescope Bits
Tax-free threshold in South Africa at the current exchange rate is US$667
compared to Zimbabwe's US$175.

Is there a business case for corporate governance in Zimbabwe? Share at
brettchulu@consultant.com

By Brett Chulu


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Muckraker: Which ‘public’ are you referring to ZBC?

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:08

DID anyone see attempts by Chief Fortune Charumbira, president of the Chiefs
Council, to hoodwink Zimbabweans into believing he is not biased towards
Zanu PF?

The Herald reported on Tuesday that Charumbira had told journalists at the
Masvingo Press Club that chiefs in Zimbabwe did not support Zanu PF but were
in agreement with its stance on land reforms and economic empowerment, among
other things.
Why is Charumbira hiding behind his finger? Do we not recall civil society
groups complaining about his partisan conduct in discharging his duties?
We remember the Zimbabwe Election Support Network complaining not so long
ago that Charumbira, while addressing a Zanu PF rally at Chilonga Primary
School in Chiredzi, threatened villagers who dared vote for the MDC.
“These threats are blatantly illegal,” ZESN complained. “ZESN notes with
utter dismay that at this rally Chief Charumbira apparently instructed
chiefs to campaign for the ruling Zanu PF party, adding that as traditional
leaders they were supposed to know ‘which side their bread was buttered’. "
Charumbira also reportedly ordered traditional leaders in rural Chiredzi
South constituency to deny state supplied food aid to opposition supporters.
According to ZESN, Charumbira instructed fellow traditional leaders in the
area to herd their subjects to the polling stations to ensure a Zanu PF
victory in the Chiredzi South by-election. Was it also not the same
Charumbira who reportedly told chiefs during the 2008 general elections that
no opposition political parties could campaign in Masvingo?
Can Charumbira stop pretending to be impartial when it is clear like
daylight that he is riding on the Zanu PF gravy train? He certainly knows
where his bread is buttered.

Can the national broadcaster, ZBC tell us who is demanding to continuously
watch President Mugabe’s address at the closing ceremony of the Sadc Summit
in Windhoek, Namibia?
We were told the programme was continuously being beamed as a result of
“public demand”.
But who other than George Charamba and Webster Shamu is demanding to
continuously watch President Mugabe’s speech in Namibia?
Someone should please tell Charamba and Shamu that they have made their
point known.
Zimbabweans now know President Mugabe received a round of applause after
delivering his speech.
We hope the praises he got from Namibia can somehow translate into food on
the table for hungry and jobless Zimbabweans.
Not to be outdone, The Herald keeps telling us Sadc has called for the
removal of sanctions on Zimbabwe. Are these stories also  a result of public
demand? We want to know.

Muckraker liked remarks by Foreign Affairs minister, Simbarashe Mumbengegwi
while addressing foreign diplomats in Harare this week.
Zimbabwe does not want handouts from the international community and only
needs the illegal sanctions the West imposed to be lifted to achieve self
reliance, Mumbengegwi said.
“Under normal circumstances, Zimbabwe is not a candidate for humanitarian
assistance,” the minister said.
He was responding to German ambassador Albrecht Konze who had said the
government was lying that there was no Western aid coming to the country
because the European Union was extending humanitarian assistance.
“We find it demeaning because as Zimbabweans we are a people with pride. You
crippled our economy and in turn you want us to be grateful for your
humanitarian assistance. Lift your sanctions and see what Zimbabweans can do
for themselves.”
Fine, but the minister forgot to tell us that even before the sanctions were
imposed Zimbabwe was a candidate for humanitarian assistance.
Should the Foreign minister not be expending his energies in cooperating
with Sadc in ensuring that President Mugabe and Zanu PF bring the country to
a proper democracy?
Is Mumbengegwi not aware that one of the conditions set by the Western world
for the sanctions to be removed is the full implementation of the Global
Political Agreement?
The ball is firmly in President Mugabe and Zanu PF‘s court.
The behaviour of their storm troopers such as Jabulani Sibanda will not help
their cause.

We were happy to see Temba Mliswa in a happy mood attending Didymus Mutasa’s
75th birthday recently.
After spending over a month in incarceration, Mliswa was captured by the
Manica Post photographer, in the company of Vice President John Nkomo,
Mutasa and Oppah Muchinguri, watching Mutasa’s wife cutting a birthday cake
at celebrations held at St Faith’s High School in Makoni. We observed that
the cake was taller than Mliswa.
Nkomo, who was at Mutasa’s birthday celebrations in his capacity as acting
president,  seized the opportunity to denounce the US, UK and other Western
countries for attempting to impose their will on  Zimbabwe.
“Who are the British, Americans and their counterparts to question our
elections? Who are they to question our ability to hold free and fair
elections? We are a free country, we brought democracy to Zimbabwe and it
was not there before and if we can bring it what can stop us from holding
our elections in a free and fair manner?" Nkomo queried.
Thanks for reminding us that but Nkomo should have told us why they are all
clamouring to be allowed to travel to the Western world?
And which free and fair elections was he referring to? We hope not the 2008
presidential run-off election.
Nkomo then told us how Western countries were keen to exploit the country’s
natural resources that include diamonds from Chiadzwa.
Muckraker would have loved to hear from the Vice President how much of the
proceeds from the diamond auction went to the companies mining at Chiadzwa.
Zimbabweans are already sceptical about the diamond sales.
The president of the Progressive Teachers Union of Zimbabwe (PTUZ), Raymond
Majongwe, was more pragmatic. It would be “folly for civil servants to think
that the diamonds would improve their lives,” he told IRIN.
“There are sharks out there who want to line their pockets first and, as it
stands, there is a lack of clarity on how much the diamonds would give to
our economy by way of job creation, and the value of the diamond deposits is
not known.”

We finally got a confession from government that innocent citizens can be
subjected to all forms of abuse by security agents at the slightest form of
suspicion.
Mapfumo Garutsa from Norton is suing four Cabinet Ministers, service chiefs,
senior Central Intelligence Organisation  agents and police officers, for
torture, unlawful detention and deprivation of liberty.
The High Court will hear the suit on Monday.
What raised Muckraker’s eyebrows were confessions by the accused persons
that they indeed abducted innocent citizens and detained them at various
unknown places.
“They were all well kept in safe houses while investigations continued.
These safe houses are not prisons but very decent and comfortable houses in
low density areas in Harare,” the defendants said in court papers.
“None of the suspects were subjected to any pain. None of the suspects were
held incommunicado. They were allowed interaction among themselves in some
instances. They all had access to clean air, clean water, toilets, bathrooms
and all necessary sanitation including sanitary wear for the women.”
They claimed “suspects” who were HIV positive were attended to by doctors
and were given medication and treated. Those who gave information did so
“voluntarily through interviews which were held in comfortable environments”,
we were told.
But do we not recall some of the suspects being rushed for emergency medical
treatment after their release from state captivity.
If they were coming from hospitable and comfortable environments why did
they urgently require medical attention?
And why does Justice minister Patrick Chinamasa think we are so gullible to
accept his lame argument that Zimbabweans who fled political persecution
back home and settled in the United Kingdom were being “used by
 imperialists”.
Now they want to be deported back because the “imperialists” fulfilled their
agenda of portraying Zimbabwe as an unstable country.
Chinamasa should get his facts right. The United Kingdom is deporting failed
asylum seekers only. Those that were granted asylum status are free to stay
in the UK.
If the political situation in Zimbabwe was as stable as Chinamasa wants the
world to believe why did Zanu PF enter into negotiations that led to the
Global Political Agreement and a power-sharing government with the two MDC
political parties?

 


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Erich Bloch: Partial GPA implementation undermines economy

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:04

YET again, the largest arm of Zimbabwe's so-called "inclusive government"
has demonstrated its determination to do "its own thing", irrespective of
the best interests of the country's population. Although at the recent Sadc
Summit held in Windhoek, Namibia, Zanu PF is said to have accepted the
30-day deadline for implementation of all outstanding items of the Global
Political Agreement (GPA), it is showing contrary intent.  As soon as its
delegation had returned to Zimbabwe, it qualified that acceptance by
imposing a pre-condition, knowing full well that that condition would not
conceivably be met.
Within days of the supposed accord at the Summit that the unresolved issues
of the GPA would be fulfilled forthwith, Zanu PF stated, dogmatically and
aggressively, that it would only comply in the event that the so-called
"illegal" sanctions imposed by diverse Western and Commonwealth countries
were lifted in their entirety.  In making that demand, it was undoubtedly
fully aware that the prospects of that occurring are as improbable as Osama
bin Laden being appointed emperor of the world, and all that is therein!  If
Zanu PF genuinely believes that its precondition will be heeded and accepted
by the international community, it is guilty of extreme naivety, which is
highly unlikely.
At the outset, the demand was couched in that party's usual grossly
confrontational and aggressive manner, once again the sanctions being
described as "illegal".  There is absolutely no substance to that
contention, for each and every country has an absolute right to determine
whom it will trade with, and whom it will bar from trading with its
residents.  Similarly, every country is entitled to restrict access to it by
anyone that it does not wish to enter its borders.  Moreover, there is no
law, international or otherwise, which prescribes that countries cannot
impose trade or travel restrictions, save and except that all members of the
United Nations are bound by its charter to allow travel for purposes of
attendance at, and participation in, events of that body.
Secondly, it is very pronounced misrepresentation to claim that those
international sanctions are the primary cause of Zimbabwe's economic morass.
From an economic point of view, the only negative consequence of the
sanctions are that government, its parastatals, all entities in which
government has an interest, and all enterprises wherein various named
individuals in, or associated with, government, cannot trade with any in the
sanctions-imposing countries, and cannot access funding from those
countries.  Whilst that undoubtedly has some negative consequences for the
Zimbabwean economy, those consequences are minimal as compared to the vast
array of economic constraints which afflict the economy, almost all of which
were created by the pre-inclusive government.  Sanctions were not the cause
of decimation of agriculture, the decline in tourism, the alienation of
foreign investor interest, the extreme hyperinflation that afflicted
Zimbabwe until the end of 2008, the huge fiscal deficits, and much else.
The causes were appallingly ill-considered, negative governmental policies,
compounded by economic mismanagement by government over more than a decade.
This included uncontrolled corruption, and the alienation of the goodwill of
those who would be Zimbabwe's real friends, as distinct from the
fair-weather friends endlessly courted by Zanu PF.
Complete, comprehensive and unqualified implementation of the GPA, including
genuine progress towards free, fair and democratic elections, would be the
catalyst for reversal of Zimbabwe's immense economic ills, setting the
economy on the path to meaningful recovery and growth. That economic
transformation would result in the progressive elimination of the extreme
poverty, hardships and suffering which afflict almost 90% of the country's
populace.  Building upon that catalyst with constructive, practical, just
and equitable economic policies would progressively (albeit over an extended
period of time) develop the Zimbabwean economy to one of the foremost on the
African continent. This is bearing in mind the immense potential wealth
obtainable from agriculture founded upon proven fertile land, an enormous
treasure chest of numerous different minerals, a large variety of unique and
spectacular tourism resources, a strongly established (although presently
tragically declining) industrial base, and a very able and diligent
population.
The implementation of the GPA would be the key to the door for major foreign
and domestic investment, substantive international lines of credit in
addition to relief from much of Zimbabwe's enormous accumulated debt burden,
substantive developmental aid and  considerable other significant
contributors to an economic turnaround.  But it is ever more increasingly
apparent that Zanu PF's alleged support for the GPA is naught but a facade,
primarily driven by a need to appease demands of Sadc and the African Union,
and that in reality there is no genuine desire for the GPA, or for it to
succeed.  The consequence is that the economy, and its recovery, is yet
again undermined, and the people of Zimbabwe doomed to yet even greater
distress.
That there is such never-ending resistance to do the right things must
inevitably be presumed to be for several reasons, of which foremost are:
lApparently many of the opponents to constructive change are imbued with
deep-seated megalomania and paranoia. They are incapable of believing that
they are capable of doing anything wrong, therefore, if anything is wrong,
it is as a result of Machiavellian actions of others.
lPerceptions that failure to achieve economic turnaround can be attributed
not only to mythical enemies abroad, but also to the partners within the
GPA, thereby eroding electoral support for those partners, and hence
retention of power with the progressive elimination of those partners.
lFor so long as international sanctions prevail, they can be blamed for the
economic ills, thereby diverting realisation by the populace of the real
causes of those ills.
lIn the unlikely event, without conceding to international and regional
demands, the international sanctions are wholly lifted, then the
approximately 200 hierarchy of Zanu PF and their associates and families
would have freedom to travel wherever they wish.  (The importance to them of
this travel ability was loudly evidenced in the politburo's post-Sadc Summit
demand that any lifting of sanctions include the lifting of the travel
restrictions).
Tragically, for Zimbabwe and the majority of its people, last week's stance
upon full completion of the GPA and upon the international sanctions was yet
another Zanu PF driven nail into the coffin of the Zimbabwean economy.  It
is long overdue (but still not too late) for reason to prevail, and for
Zimbabwe to be set upon the path to the recovery that the people so
desperately desire, and deserve.


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So many elections, so little change

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:02

TOO many elections, too few changes! The spectre of more polls next year
brings this exhausting ring to Zimbabwe, one of those African countries
where elections are regular but leadership changes remain a mirage.
Constitutional and Parliamentary Affairs minister Eric Matinenga has
confirmed that a referendum on a constitutional draft whose crafting is
controversially led by the government and parliament will be on in the first
half of next year.
Meanwhile, the prospects of a general election next year are growing, as
both President Robert Mugabe and Prime Minister Morgan Tsvangirai warm up to
the idea.
Election weary Zimbabweans, however, don't appear excited. The little
confidence in elections being an agent for change was lost after the
euphoria of 2008 turned into a farce that forced the formation of the
coalition government, analysts and commentators say.
The violence and vote rigging that have characterised past elections meant
coalition government partners pushing for polls next year -- after the
constitutional referendum -- were out of sync with the electorate.
"Who will be excited about elections in a country where it has become a norm
that sadists and war-mongers will unleash violence on the electorate and
where election results are pre-determined?" queried Sabelo Ndlovu-Gatsheni,
a senior researcher at the South African Institute of International Affairs.
"Besides the problem of violence, there is an increasing belief that
elections do not result in change of government."
Zimbabwe would have held nine general elections in 11 years, an average of
one in every 18 months since 2000 when the MDC first contested elections, if
both the referendum and general election proceed next year.
Zimbabweans cast ballots twice in 2000 (the constitutional referendum in
February and the parliamentary elections in June) then once in 2002 during
the presidential elections, twice in 2005 (parliamentary elections and the
senatorial elections) and twice in 2008 (the harmonised elections and the
presidential runoff.)
This means that a person who became eligible to vote in 2000 would have
voted more than a Briton or American who participated in all general
elections since 1980 in their respective countries.
Voter fatigue has seen turnout at general elections plummet from an
estimated 90% in 1980 to 33% during the 2008 harmonised elections in which
Zanu PF lost its parliamentary majority for the first time since
Independence.
Despite this parliamentary loss, and that of Mugabe in the only recognised
presidential election held in that year, Zanu PF remains in charge, a case
of bother for the majority who voted for its ouster, say analysts.
Ndlovu-Gatsheni, who has published two books on Zimbabwe's history and
politics, said the 2008 election fiasco killed confidence in electoral
systems.
"There is a general feeling of powerlessness among the electorate in the
face of an arrogant political elite that does not respect the verdict of the
electorate," said Ndlovu-Gatsheni.
Analysts noted that while
Zimbabwe boasted holding more elections than most of its peers, flawed
systems and half-hearted reforms have rendered the processes academic.
"The issue is not that Zimbabweans have developed a fatigue for elections,"
said Trevor Maisiri, executive director of Africa Reform Institute. "Rather
Zimbabweans have developed a fatigue for poor and undemocratic governance
and a credible electoral process should then be the very exposition that
retires this odious stagnancy."
Some analysts, however, said elections were the most viable way out of the
country's crisis that has been prolonged by coalition government partners'
failure to function cohesively.
"Elections remain of paramount importance in Zimbabwe," said Takura
Zhangazha, a political commentator critical of the coalition government.
"The only problem is that there have never been free and fair elections
since Independence. This is the problem. But that they remain important is
beyond dispute because they are the only way in which the people of Zimbabwe
can select leaders of their choice."
Zhangazha said while an election next year could not necessarily excite the
general populace, it would arouse active political party supporters.
Psychology Maziwisa, a political analyst, laughed off the issue of voter
fatigue, instead blaming apathy on rigging and violence.
"Crossing a box every five years and one is supposed to be tired? What utter
nonsense. Elections are not the problem. It is the rigging that is," said
Maziwisa.
Voter fatigue is a problem in certain democracies and there are various ways
of getting round it, including making it mandatory to vote as is the case in
Australia, Belgium and Brazil, he said.
He suggested electronic voting as a means to eliminate the physical casting
of the ballot or adopting delegated voting where chosen people vote on
behalf of those they represent.

Leonard Makombe
 


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Poll roadmaps: The vested interests of GNU parties

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:01

IN the aftermath of the Sadc summit held in Windhoek, Namibia, the new but
relatively old national debate would be presumed to be about elections. This
debate would be placed within the context of the report given by the Sadc
appointed facilitator, President Jacob Zuma of South Africa on the
Zimbabwean political impasse to the Sadc troika meeting held in August in
Windhoek.
The facilitators' report mentioned a fundamental issue concerning a roadmap
to Zimbabwe's next general elections. The general implication of this report
was that, in order to resolve the political impasse in Zimbabwe, there
should be free and fair elections. This is a position which very few would
refute as democratic political fact because the last general national
election in Zimbabwe gave birth to what is now considered an inclusive
government which, by and large, should only be considered as transitional.
The Sadc communique that followed the presentation of the facilitators'
report, as predicted by many analysts, did not make direct reference to the
contentious issue of elections nor did it give any timeframe within which
they should be held outside of the framework of the global political
agreement (GPA).
In fact, Sadc recommitted itself to what has come to be viewed as an adage.
It reemphasised the GPA as the functional framework through which a free and
fair election can be held with the assistance of regional and continental
bodies. The protagonists within the GPA had varied responses to this
resolution of Sadc, especially in its aftermath. Zanu PF, through its leader
Robert Mugabe, insisted that this articulation of an electoral roadmap by
Sadc was not a fundamental departure from Article 6 of the GPA, an article
that places the Constitutional Parliamentary Committee (Copac) at the centre
of any electoral roadmap for Zimbabwe.
The stronger Movement for Democratic Change led by, Morgan Tsvangirai,
insisted that contrary to Article 6 of the GPA being the mainstay of any
electoral roadmap for Zimbabwe, it has new benchmarks for the achievements
of the same. These would ostensibly include a potential negation of the GPA
and an acceptance of the long implied fact that Zimbabwe requires a clearly
legitimate and majority government via a free and fair election. The MDC led
by Arthur Mutambara insists there is no urgency for elections, let alone an
immediate roadmap for the same outside of the GPA.
The truth of the matter is that any roadmap for elections within the next 18
months is dangerous business for the country and by default to the three
main political parties that comprise the GPA. It is risky for the country
primarily because there is no fundamental agreement on elections between the
protagonists of the GPA and due to limited concern from Sadc. The fact that
there is no agreed framework for the elections next year between the two
MDCs and Zanu PF essentially points to the fact that there will be no shift
from the electoral culture and practice of March or June 2008.
For the country it would mean we would not only be back to where we started,
but the political stakes and brinkmanship would be much higher than we would
expect. The nature and character of such a political campaign for power
would not only be similar in narrative and fashion to what occurred in 2008,
but it would also defeat the whole purpose of having formed an inclusive
government in the first place. This is especially to the chagrin and
embarrassment of Sadc.
The call for an election next year would also be problematic for Zanu PF
because it remains, for all its efforts, particularly unpopular with the
electorate to the extent that it knows it cannot win any free and fair
election in which Sadc would have a supervisory role. Some may argue that
Sadc has been a toothless bulldog, which one may consider a fair argument.
It would however be wise to advise that despite all forms of accusations
against it, Sadc would never allow a repeat of June 2008 and therefore is
not firmly on Zanu PF's side.
This essentially means that a general election next year would, for Zanu PF,
be the equivalent of tempting fate.
As for the Tsvangirai MDC faction, any decision to support the holding of a
general election in 2011 in terms of a new roadmap would have the impression
of a negation of the GPA altogether. It would be the equivalent of not only
a pullout from the inclusive government but also from the Copac process as
defined in Article 6 of the GPA. This would again mean the three
protagonists would be back to square one or, alternatively, back to February
2008 - a scenario that would point to the potential repetition of history in
two years.
The MDC Mutambara's vested interests would be in not seeking an earlier
election. This agenda would be based on the fact that they are neither as
popular nor ready for an election for the same reason. In any event they
have actively sought the avoidance of an electoral roadmap that seeks an
election in 2011 not, as they claim, for the national interest but in order
to reconfigure themselves as a long term fact in national politics, either
by personal or regional geographical political interests.
It would therefore be imperative for the three political parties to answer
to the issue that they have made enough progress, through the GPA and
inclusive government, to call for an election next year. Alternatively, they
could stall the election until 2013. Where they fail to answer either, they
are being dishonest to the people of Zimbabwe.

By Takura Zhangazha


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Can democracy thrive in Africa?

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:00

WHEN African countries gained independence from 1960 onwards, they faced the
challenge of building their structures from scratch.
Their former European masters had mostly not encouraged the idea of
accountability and any pre-colonial institutions had been destroyed,
according to most historians.
In addition, many countries' boundaries had been arbitrarily drawn by
colonial powers, leaving independent nations with no common identity.
In many cases, the activists who took power were dictators who ruled their
countries without democracy or regard to the freedom of their people.
Half a century later, almost all African countries have some form of
democracy, though in many cases there is little realistic opportunity for
opposition parties to gain power because of bias towards those in power in
electioneering.
Thomas Cargill, assistant head of the Africa programme at the London-based
international think-tank, Chatham House, said: "They have the form -- but
not the substance -- of Western-style democracy. They go through the motions
of elections but those in power do everything they can to make sure the
opposition are not in a position to win."

Long-serving African leaders
l Omar Bongo led Gabon for 42 years until his death last year, when he was
succeeded by his son Ali Ben Bongo
l Colonel Muammar Gaddafi of Libya has been in power for 41 years.
l Obiang Nguema has been president of Equatorial Guinea for 31 years
l Robert Mugabe has ruled Zimbabwe for 30 years.
l Yoweri Museveni of Uganda has been in power for 24 years
Campbell said that an African cultural convention for reaching consensus
meant the Western view of democracy did not always fit.
"If you have a disagreement in the West, you vote on it. In Africa you talk,
talk and talk some more until you reach a consensus. That's why there are so
many one-party or dominant party states in Africa. Sometimes that ruling
party is able to provide a forum for real discussion."
The Foundation for Democracy in Africa, a Washington-based organisation,
argues that education is the key to getting ordinary people engaged in
African politics. Tony Okonmah, its executive director said: "Democracy has
often been misinterpreted in Africa as something that only has to do with
politics and the ruling elite.
"We are trying to redefine it to show democracy is about people
participating, everybody contributing their know-how to make sure the
environment is what they want it to be.
"This has to be achieved through education. Illiteracy has contributed to
the problem, so we are against anybody helping to enslave children instead
of sending them to school. If everybody is educated they will see the need
for good governance."
There are, of course, democratic success stories where power has transferred
peacefully to an opposition party. Cargill points to Ghana and Sierra Leone
who have had opposition election wins in recent years.
South Africa is also considered a beacon of democracy, since shaking off the
shadow of apartheid. Campbell said: "I don't think 25 years ago many of us
would have predicted the outcome in South Africa would be as good as it is.
Its success is particularly remarkable because it is such a large country
and so divided racially and economically."
However South Africa also has its shortcomings; no party but the ANC has had
power since 1994 and President Jacob Zuma has faced persistent allegations
of corruption.
Campbell added that there had been a worrying return to military coups
elsewhere on the continent. Niger, Guinea, Guinea-Bissau and Madagascar have
all had army generals seize power in the last two years.
"Even though they have taken place in relatively small African countries, it's
worrisome because coups can be infectious," said Campbell.
Cargill argued that Africa reached its peak in Western-style democracy
between the late 1990s and mid 2000s, but had slipped into greater
authoritarianism in the last three or four years, as leaders forged
partnerships with new powers such as China and India and became less reliant
on Western approval.
He said a wave of "new African leaders" including Yoweri Museveni of Uganda
and Meles Zenawi of Ethiopia became the "darlings" of Western democracy in
the 1990s.
They promised a fundamental change in African politics towards Western-style
democracy and found favour with president Bill Clinton's administration in
the US.
"President Museveni came to power in 1986 saying African leaders stayed in
power too long and wrote into Uganda's constitution that presidents should
only serve two terms," said Cargill.
"However, in 2005 he changed the constitution to allow him to serve a third
term and will probably stay for a fourth term in 2011."
The late 1990s peak was also brought about in part by an insistence from
Western donor countries on their own interpretation of democracy, according
to Cargill.
He said: "This influence has waned as African governments choose their
international partnerships with new powers such as China and India, making
them less dependent on the West.
"This is not all bad news, as although formal democracy is shrinking in many
African countries, there's more focus on accountability of government
officials. The media and ordinary people are gaining more power to question
and remove corrupt officials". -- CNN.


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Candid Comment: Sibanda hero status debacle exposes GNU

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:43

SINCE February 2009, Zimbabweans have been under the illusion that the
country was run under a tripartite arrangement where power was shared by
three principals, namely President Robert Mugabe, Prime Minister Morgan
Tsvangirai and his deputy Arthur Mutambara. Although there have been signs
of friction in the tripartite arrangement, the outburst this week by
Mutambara after Mugabe's Zanu PF politburo declined to declare his party
deputy president, the late Gibson Sibanda, a national hero shows without any
doubt that this is a marriage of convenience where Zanu PF pursues partisan
interests.
In fact, the outburst further exposes the extent to which Mutambara and
Tsvangirai have become passengers in an arrangement that has been
deceptively touted as "inclusive". Mutambara was quoted in the media as
saying: "We communicated to President Mugabe before cabinet and we wrote to
him formally after cabinet in the afternoon. Our colleagues from MDC-T have
also supported our recommendation by writing to the president saying the
same thing that . Gibson Sibanda must be accorded national hero status."
"We have since received communication . that the Zanu PF politburo has
decided that Gibson Sibanda is not worthy of being declared a national hero,
instead they have taken a position where he has been accorded a state
assisted funeral  by the Zanu PF politburo."
It is strange that Mutambara expected the Zanu PF politburo to honour an
arch foe who "humiliated" the party into accepting a power sharing
agreement. Under the National Heroes Act, declaration of a hero is the
prerogative of the president who "considers that any deceased person who was
a citizen of Zimbabwe and has deserved well of his country on account of his
outstanding, distinctive and distinguished service to Zimbabwe, he may, by
notice in the Gazette designate such person as a national, provincial or
district hero of Zimbabwe".
However, it is instructive to note that under the GPA implementation matrix,
the GNU principals gave the Cabinet Committee on Honours and Awards --
together with Cabinet -- two months to expedite the adoption of non-partisan
and inclusive principles and framework on the designation of national
heroes.
This would have been a perfect opportunity for the parties in the government
of national unity to show their unity by speaking with one voice on the
death of one of their own. The impression given by Mutambara in his
statements is that Mugabe is bulldozing his way around the unity government.
Although the two-month mandate given to the cabinet committee has not
lapsed, one would have expected Mugabe to at least communicate with his
partners in the unity government before the decision was announced.
In the absence of a frank discussion with his colleagues, Mugabe has exposed
himself to criticism, with MDC-T's Nelson Chamisa insisting "any meaning of
hero - either a dictionary meaning or a political interpretation - would fit
Sibanda. There is no debate at all."
Sibanda's colleagues in MDC-M weighed in with charges that Sibanda's death
provided an opportunity "for Zanu PF to come out and tell the country that
the taxpayer has been funding what is essentially a misnamed Zanu PF
honorary club and burial society".
Although Zimbabweans have accepted that they have to make to do with a
coalition government, they expect better from their leaders.

By Edwin Dube


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Editor's Memo: Acerbic attacks prolong Zim’s bad boy image

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:41

THE art of diplomacy is the defining element of a state, but what we have
seen this week with Foreign Affairs minister Simbarashe Mumbengegwi is the
destruction of the state as his actions have cast Zimbabwe as a rogue member
of the international community.
On Tuesday Mumbengegwi, taking a leaf from President Robert Mugabe, lashed
out at Western diplomats telling them that the country was not a “candidate
for humanitarian assistance” as it had the capacity to look after itself.
“Just remove the sanctions,” the minister said.
Mumbengegwi would do well to trace the origins and history of diplomacy from
ancient Egypt and Greece to modern diplomacy which emerged during the
Renaissance. Any observer would realise that diplomacy, or at least public
diplomacy, is all about building relationships, not destroying them.
It has evolved from being premised on exchanging rich gifts and arranged
marriages to the posting of ambassadors resident in the receiving country.
Diplomacy may involve both overt and covert operations, but what goes in the
public sphere are the sweet things, friendship and trade, and no sensible
person is interested in hearing Mumbengegwi making declarations.
In what has become the vogue for Mumbengegwi and Mugabe, their timing of
certain pronouncements is clearly devoid of strategy and renders useless
efforts by the same government to have restrictions and sanctions imposed on
the country lifted.
Mugabe relies on his graveside diplomacy which has severally backfired.
Instead of steering the country’s diplomatic ship back on track, Mumbengegwi
reads the Mugabe script in a different voice.
Western diplomats walked out on Mugabe at the Heroes Acre earlier this month
after he attacked Europe and the United States accusing them of bullying and
poking their noses in the country’s affairs. The acerbic attacks by Mugabe
are done under the guise of sovereignty and territorial integrity.
The concept of sovereignty, according to former South Africa President
Nelson Mandela, should not be abused to deny the international community the
right to intervene when “behind those sovereign boundaries, people are being
slaughtered to protect tyranny”.
We expected Mumbengegwi to play a crucial role in ironing out our
differences with the West and the US but, alas, he has taken the baton from
Mugabe and decided to run with it into the bush by attacking the diplomats.
This  has left us wondering if it is a case of public posturing with hushed
genuine diplomatic efforts behind the scenes  or is it the usual stuff of
carpet bombing with the country isolated more than ever.
If one tries to put what Mumbegegwi said this week into perspective, it
would be evident that the country’s foreign policy could be in the wrong
hands, going against the grain of the inclusive government as well as the
global political agreement (GPA).
Mumbengegwi should know the conditions for the removal of sanctions and no
matter how much he lashes out at the local envoys, the embargoes will remain
in place until the GPA is fully consummated.
Even if the sanctions were removed today, the country faces a plethora of
humanitarian, social, economic and political problems which, to a certain
extent, would need the intervention of international donors.
Zimbabwe has travelled rapidly, moving from a strong to a weak state,
dithering on the brink of a failed state and to reverse this would not only
require the removal of sanctions, but a focused administration.
We don’t need ministers like Mumbengegwi to implement our foreign policy
based on their myopic worldview.

Constantine Chimakure


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Comment: KML saga: Gono, Biti must remain neutral

http://www.theindependent.co.zw/

Thursday, 26 August 2010 19:41

RESERVE Bank of Zimbabwe chief Gideon Gono's involvement in the Kingdom
Meikles Ltd fight pitting Nigel Chanakira and John Moxon is suspicious, to
say the least. Gono, who has seemed to be neutral during the year-and-a-half
old dispute, says he is worried that the fight could knock the public's
confidence in the financial services sector.
Gono said: "Developments at Meikles and Kingdom Bank are worrisome to both
the Ministry of Finance and Reserve Bank of Zimbabwe. The disputes have gone
on for far too long in a vague and inconclusive way that is not only
damaging the two organisations and their respective shareholders but also
threatening the stability of the banking sector in particular and the
economy in general. Both the Minister of Finance and myself as government
have had enough of this nonsense and are calling on all parties to the
dispute to resolve this matter once and for all before the end of this
month."
Since early last year, KML shareholders have borne the brunt of the fight
and lost millions in value. KML is now valued at US$88 million and had lost
35% of its year-end value at the time of going to press.  Although
shareholders are suffering from negative market sentiment arising from the
Moxon-Chanakira fight, Gono's intervention must be regarded with caution.
Where has he been all along? While efforts to expedite negotiations in
conflict situations are noble, the intervention of authorities in this
instance must be to safeguard the interest of the sector as a whole and not
side with any of the feuding parties.
In other words, Gono and Finance minister Tendai Biti should not fight in
either Moxon or Chanakira's corner.  Fairness and equality should be the
guiding principles. But judging from Gono and Biti's statements recently,
the two seem bent on intervening on someone's behalf. Why have Biti and Gono
joined hands to settle this fight after  looking on as spectators for almost
two years? Could there be an ulterior motive in the duo's involvement in
this purely shareholder conflict? Although it is not in dispute that
Chanakira founded the bank, in the world of business, even founders -
especially those with little to no shareholding and voting rights - can be
booted out. The late LonRho Corporation's Tiny Rowland is a case in point.
That's business.
If governments intervened whenever one of its citizens took over a company,
then there would no business. After all, Chanakira's shareholding in Kingdom
Financial Holdings was never high and in business, shareholding backed by
alliances is everything. It is also important to note that the banker has
since last year failed to pay Moxon and Meikles US$22,5 million back in
order to finalise the de-merger which the former is demanding. Meikles
extended US$22,5 million to Chanakira's KFHL for statutory capital
requirements in happier times. As a result Chanakira would get 43% of KFHL's
total issued share capital.  Against such a background, Gono and Biti must
not be seen siding with any of the parties in their roles to mediate.
Gono accused the two of not having clean hands. The matter at hand is not
about who has more dirt than the other. Rather, it should be an issue of
authorities encouraging and helping the feuding parties to narrow their
differences and reach a settlement. By publicly claiming that Chanakira and
Moxon's hands are not clean, Gono missed the point. If authorities cannot
deal with the issue fairly, then maybe they have no place running around
claiming to be mediators. Should it be proven that Gono and his boss are
fighting in one particular corner, then they must relinquish their posts.

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