Zim Online
Tue
8 August 2006
HARARE - Zimbabwe is this week expected to seal a
US$500 million deal
with Russia for the supply of five Ilyushin and Tupolev
commercial airplanes
as President Robert Mugabe's government steps up
efforts to strengthen
economic ties with east European and Asian countries,
sources told
ZimOnline.
A 10-member delegation led by Zimbabwe
transport permanent secretary
George Mlilo left Harare for Russia last
Sunday where they will meet
officials of the Voronezh Aircraft Construction
Company (VACO) to conclude
the deal.
The aircraft supply deal
was first brokered by Reserve Bank of
Zimbabwe governor Gideon Gono and
Zimbabwe Transport Minister Chris Mushowe
during a visit to Russia about two
months ago.
Air Zimbabwe board chairman Mike Bimha
said the airline was talking to
"a Russian supplier" as part of a wider
search for a possible supplier of
new aircraft.
"Yes, we do
need new equipment for our operations. For aircrafts, we
are exploring
various possible suppliers and there has been contact with a
Russian
supplier," said Bimha, refusing to be drawn to discuss in detail the
deal
with VACO.
Our sources however said the deal was as good as sealed,
saying that
delivery of the Russian planes was expected to start from
2008.
But the sources added that pilots and engineers were unhappy
with the
purchasing of planes from Russia because of what they say is a poor
record
of accidents of airplanes made from the east European
country.
"Pilots have vowed to protest against the move by
management. We need
to be involved (in deciding what planes should be
bought) because we are the
ones who will be flying those planes," said one
source, who declined to be
named.
Mugabe, who has ruled
Zimbabwe since independence from Britain 26
years ago, has shifted his
foreign policy to favour the East over the past
six years in response to
what he views as sabotage by Western countries
angered by his government's
land reforms.
As part of the "Look East" policy, the Zimbabwe
government has entered
into at least 15 deals worth billions of dollars with
the Chinese, Iranians
and other Asians, mostly on fuel, mining, electricity
and communication.
The southern African country last year acquired
two MA60 planes from
China and received a third one for free earlier this
year. The planes are
now being used to fly domestic and regional
routes.
The main opposition Movement for Democratic Change party
however
accuses Mugabe of mortgaging the country to especially the Chinese
under his
"Look East" policy. He denies the charge. -
ZimOnline
Zim Online
Tue 8 August 2006
NYANGA - As the first rays of the sun
filter through this rugged
terrain in eastern Zimbabwe, John Dandazi, his
body almost drenching in
perspiration, sits atop a roadside pile of neatly
stacked cotton bales.
A former accounting clerk, Dandazi is taking
a well-deserved rest. He
was up at the crack of dawn, readying his cotton
crop for transportation to
the nearest market.
We are in the
Nyamaropa area in Nyanga, 350 km east of the capital
Harare and only a
stone's throw away from the Zimbabwe-Mozambique border.
"With
prayers and luck, I hope to get transport in the next three days
to get my
bales to the nearest cotton depot," he says, wiping sweat from his
face and
forearms with a tattered cloth.
He will, indeed, require lots of
prayers to successfully ferry his
harvest within his prescribed deadline to
the depot at Nyanga Centre, 60 km
away. A nationwide fuel crisis has driven
traffic off roads.
"The producer prices we are getting are too
low," says the father of
four, who turned to cotton growing five years ago
after losing his job in
Harare.
He says he is hard-pressed to
break-even this year, given the
escalating costs of inputs and transport,
depressed producer prices and
runaway inflation - which, at close to 1 200
percent, is one of the world's
highest outside a war zone.
"We're not consulted when these prices are calculated. It's unfair. We
want
and deserve more money," says Dandazi, who grows the crop on a
four-hectare,
sun-baked field.
Except in instances of government intervention,
prices paid cotton
growers are set by the two leading cotton ginners,
marketers and
distributors, the Cotton Company of Zimbabwe (Cottco) and
Cargill Zimbabwe
(Private) Limited.
A formerly State-run entity
and publicly-held company since 1995,
Cottco controls 70 percent of
Zimbabwe's cotton market. Its competitor,
privately-held Cargill Zimbabwe -
controlled by United States-based global
giant Cargill Inc - has a lock on
25 percent of the market.
Cotton grower prices were pegged at Z$3
500 per kg at the start of the
marketing season in May last year. Prices
were increased two months later to
$5 000 per kg, but only after Reserve
Bank of Zimbabwe governor Gideon
Gono's intervention.
The
closing price for the current selling season, slated to end in
about three
weeks, has yet to be determined. Zimbabweans use 30 percent of
the 300
million kg of the annual cotton output, while 70 percent is
exported.
Dandazi appeared oblivious during the interview with
this
correspondent of a devastating blow dealt the local industry by events
that
occurred a few days ago, thousands of kilometers away in
Europe.
It is also perhaps true that a majority among Zimbabwe's
250 000
cotton growers who helped propel the crop into the top foreign
currency
earner in the past two years - raking in about US$150 million in
export
revenue annually - were unaware of the events in Europe and their
implication to their livelihoods.
On 24 July, a few days before
this interview, representatives of
developed and developing countries
meeting in Geneva, Switzerland, failed to
reach agreement on ways to reduce
trade tariffs and expand markets for
agricultural products sold to rich
nations by poorer ones.
Had the talks, held under the auspices of
the World Trade Organisation
succeeded, Zimbabwe's cotton industry would
have benefited from low tariffs
for their produce and expanded markets
throughout Europe, North America and
the Far East.
"Successful
tariff reductions and expanded markets will create a
bonanza for Zimbabwe's
cotton industry," says an agri-business analyst. "Low
tariffs should
translate to fat profit margins for marketers and, ideally,
thicker pay
packets for growers."
While the talks' collapse inevitably led to
finger pointing and blame
apportionment among some participants, powerful
interests that included
agriculture lobby groups in the United States (US)
worked tirelessly to
torpedo the proposals.
In America,
according to data from the US Department of Commerce,
agricultural products
and services constitute about 30 percent of annual
exports which, perhaps,
helps explain the strength of the farm lobby.
Bob Stallman, head of
lobbyist group American Farm Bureau Federation,
told the New York Times soon
after the talks failed: "We are proud that the
US stood up and held the
line. No deal is better than a bad deal."
On average, the US
government spends US$4 billion annually in
subsidies to its cotton farmers,
who run some of the most sophisticated,
highly mechanised agricultural
operations in the world.
Questions on American subsidies and
lobbying efforts aside, what does
the future hold for Zimbabwe's cotton
industry - with or without a reduction
on global trade tariffs?
John Wilson, a researcher with a United Kingdom-based,
non-governmental
organisation, Pesticides Action Network, has been bullish
about prospects
for the local cotton industry, especially among small-holder
growers.
"Cotton growing is popular in Zimbabwe's dry areas
because it is
usually the only cash crop available," he says in a
comprehensive study,
Organic Cotton Farming in Zimbabwe, he prepared for the
UK organisation.
Documenting a major shift since Zimbabwe's
independence in 1980 away
from large scale commercial cotton farming towards
communal and small-scale
growers, the study concludes that small-holder
farmers "now represent 80
percent of the national cotton
output".
The Zimbabwe Farmers Union (ZFU), which represents a
majority of the
small-holder growers, agrees. "Growers have been joining us
in large numbers
in recent years," says a ZFU official.
Data
shows that small-holder growers contributed 57 percent of output
during the
1980-81 season and 58 percent in 1990-91. This skyrocketed in the
1999-2000
season, when 74 percent of the national output of 356 000 tonnes
came from
non-commercial growers.
But growers grumble that they are not
getting a fair share of revenue
generated from their contribution. They
suggest Cottco and Cargill Zimbabwe
shortchange them by keeping much of the
revenue cake.
This perception is echoed by one ZFU official, who
declares: "They're
making huge profits on cotton ginning and sales but the
question is, 'Is
everyone involved benefiting?' We're not
convinced."
In the past, the companies' representatives have
dismissed these
suggestions as unfounded, asserting revenues are ploughed
back to growers in
the form of bonus and credit schemes in addition to
regular reviews of
growers' prices.
Cottco has registered
billions of dollars in profits each year since
its privatisation in 1995.
Privately-held Cargill Zimbabwe does not publicly
reveal its
finances.
But for farmers like Dandazi in Nyamaropa, the best way
to cope up in
an environment that is far from certain is to psyche oneself
into a
wait-and-see attitude. While he has contemplated substituting cotton
to grow
other cash crops - sugar beans, paprika or sweet potatoes - he is so
far
keeping such plans in abeyance.
"It will be a difficult
decision for me to abandon cotton which has
supported me so far," he says,
gazing forlornly on the deserted road.
"I can't foretell the future
because circumstances change. I'll still
be growing cotton in the coming
season. I'm crossing my fingers growing
costs will become stable while
growers' prices rise." - ZimOnline
Zim Online
Tue 8 August 2006
HARARE - Fresh problems are
emerging with Zimbabwe's new
re-denominated currency introduced last
week.
In sweeping currency reforms that also included a 60 percent
devaluation of the Zimbabwe dollar, the Reserve Bank of Zimbabwe slashed
three zeroes from every banknote and introduce a new "family of bearer
cheques".
Bearer cheques are promissory notes first introduced
by the RBZ three
years ago at the height of cash shortages in Zimbabwe. They
are not official
legal tender but are used in the same way as
money.
RBZ governor Gideon Gono gave Zimbabweans up to August 21 to
surrender
the old bearer cheques in exchange for new ones with less
zeroes.
Justifying the drastic monetary changes, Gono said they
were necessary
to lessen the burden for Zimbabweans who were experiencing
enormous
inconvenience having to move around with huge bundles of the old
bearer
cheques with several zeroes just to carry out small transactions such
as,
for example, buying a pint of milk.
A pint of milk would
cost anything between $195 000 to 200 000 dollars
using the old money but
now costs $195 to $200 using the new money.
However, Zimbabweans
are fast discovering that the burden of having to
carry huge bundles of
notes is not any lighter under the new currency.
Unlike in the past
when all denominations smaller than a dollar were
in coins, the new currency
introduced by Gono on July 31 has all
denominations - including one cent -
in notes. This is certain to create
administrative nightmares for both
service providers and consumers.
For example, one would need
between 19 500 and 20 000 one cent notes
just to buy a pint of
milk.
A commuter will need about 15 000 one-cent Zimbabwean bearer
cheques
for a one-way commuter omnibus ride to work. An average trip on
urban
commuter omnibuses costs $150.
About 4 000 five-cent
bearer cheques will be needed to buy a loaf of
bread which costs
$200.
As leading University of Zimbabwe business school lecturer
Anthony
Hawkins points out, the problem is going to be endemic in the
informal
sector, fast becoming the main provider of jobs, goods and services
for an
increasing number of Zimbabweans as the formal economy
shrinks.
"The problem is not how the business sector is going to
handle the
introduction of the new notes but the biggest challenge will be
the chaos
that this will cause in the informal sector where most of the
business
transactions are on cash basis," says Hawkins.
The
implications for the formal sector have been the need to change
financial
systems, with all companies being forced to slash zeroes off their
prices.
Mobile phone operator Econet issued a notice to its subscribers last
week,
notifying them of the change in their account balances and tariff
rates.
Company accounts have also had to be adjusted to take
into account the
new changes.
As shown in the above examples,
most service providers will have to
invest in facilities to hold all the
cash they will now handle.
The switch to the new currency caught
many parallel market currency
dealers unawares when Gono gave a 21-day
deadline within which individuals
and companies have to surrender all the
cash in their possession. In
addition, he placed a limit of $100 million
deposits per individual and $5
billion for corporates.
This
ensured that most people who were hoarding billions of dollars in
order to
buy foreign currency on a thriving parallel market were stuck with
their
cash. - ZimOnline
Zim Online
Tue 8 August
2006
GWANDA - Police in Gwanda town in Zimbabwe's southern province
of
Matabeleland on Monday arrested and later set free two members of a
Bulawayo-based political pressure group for allegedly conducting an illegal
political workshop last weekend.
Linda Mpofu and Sichelesile
Ndlovu, of the Bulawayo Agenda civic
group, were picked up by the police
yesterday and interrogated for more than
an hour following last weekend's
workshop in Gwanda.
Bulawayo Agenda, logistics officer, Busani
Ncube, confirmed the arrest
yesterday saying the police had demanded that
the two hand over minutes of
the Saturday meeting.
He also said
the police also wanted to charge the two for allegedly
obstructing the
course of justice after police officers who had gate-crashed
the workshop
were ejected from the venue.
"The police detained our employees at
Gwanda police station and
interrogated them on the leadership programme that
we are carrying out. They
also accused the two of promoting subversive
material and political
propaganda," Ncube said.
Bulawayo Agenda
is a local think-tank that organises public meetings
to discuss political
and social issues affecting Zimbabwe.
Under the tough Public Order
and Security Act (POSA), it is illegal
for Zimbabweans to hold public
meetings without first notifying the police.
Civic groups and the
main opposition Movement for Democratic Change
party often accuse President
Robert Mugabe's government of using the
security law to cripple civic groups
and political parties which are opposed
to its rule. Harare denies the
charge. - ZimOnline
Zim Online
Tue 8
August 2006
HARARE - Reserve Bank of Zimbabwe governor Gideon Gono
on Monday
ordered state security agents to stop seizing cash from
individuals holding
amounts below the Z$100 million limit set during last
week's monetary policy
statement.
Gono, who introduced a raft
of new measures to fight inflation in
Zimbabwe, last Monday ordered the
police and youth militia to seize money
from individuals holding any amounts
above the $100 million limit.
But the police and state security
agents are however being accused of
taking advantage of the chaos in the
country to illegally seize money from
Zimbabweans.
In a terse
statement yesterday, Gono said: "The RBZ is advising
members of the public
that individuals carrying up to $100 million of the
old currency should be
allowed passage at road blocks. This is with
immediate effect," said
Gono.
The RBZ chief said while the police had a right to conduct
body
searches for illegal cash, individuals had a right to ask for positive
identification from the state security agents.
Under the new
reforms, Gono slashed three zeroes on Zimbabwe's
currency and introduced a
new family of bearer cheques, a form of temporary
money introduced in 2003
to counter growing cash shortages.
Zimbabweans were given 21 days
to hand over the old currency.
But the RBZ also put in place
stringent measures for individuals
holding large sums of the dollar to hand
in the money.
Individuals and companies bringing in money in excess
of $100 million
and $5 billion respectively, must explain the source of the
funds or have
the cash forfeited to the state. - ZimOnline
Reuters
Mon Aug
7, 2006 10:44am ET
By MacDonald Dzirutwe
HARARE, Aug 7 (Reuters) -
Zimbabweans have gone on a shopping spree --
scooping up luxury cars,
livestock and other items -- not because the
southern African nation's
economic crisis has ended but rather over fears it
may get worse.
The
loosening of wallets has been spurred by a rush to beat an Aug. 21
deadline
to dispose of old banknotes for redenominated Zimbabwe dollars
after a 60
percent devaluation.
Central bank governor Gideon Gono last week
knocked three zeros off all
banknotes to help consumers cope with rampaging
inflation of nearly 1,200
percent and announced that the old currency would
be phased out in three
weeks.
The move caught many people off
guard.
During the transition period, individuals are barred from
depositing old
notes in banks in excess of 100 million Zimbabwe dollars
unless they can
show that they have acquired the funds
legitimately.
This requirement has left many holding large sums of cash,
which they are
rushing to convert into assets.
Last week a Harare man
handed over 100 billion Zimbabwe dollars in cash for
10 luxury cars, a
transaction that got the attention of law enforcement.
Others have bought
cattle and maize at a premium from unsuspecting villagers
in rural
areas.
Groceries, construction materials and anything else that can be
resold in
the future are on the shopping list.
"People are looking
for value for money they cannot put into the banking
system without being
asked questions, so any asset will do," James Jowa, an
economist with a
Harare financial institution said.
A checkout clerk with a chain store in
Harare said : "People are buying
groceries in large quantities." He added
that one customer recently walked
in and bought four cases of
whisky.
Some even joke that desperation to get rid of old banknotes could
drive
people to offer billions for a whole village.
MANY
LIVES RUINED
The central bank banned all cash transactions above 100
million Zimbabwe
dollars after discovering that some people were stocking
cell phones and
sweets just to dispose of their cash.
Gono says
trillions of Zimbabwe dollars were stashed in homes to aid black
market
deals. Border patrols have intercepted billions worth of old
banknotes from
black market traders trying to enter the country before the
Aug. 21
deadline.
Analysts say a thriving black market for foreign currency and
other
commodities was sustaining many families in a country where
unemployment is
between 70-80 percent, adding that the money never found its
way into the
banking system.
The currency changes have wreaked havoc
in the informal sector where many
left jobless after the collapse of
Zimbabwe's financial sector a few years
ago have survived on commodity
trading, opting to stash their cash earnings
at home.
"Gono has dealt
another blow to people like me, who have struggled to earn
an honest living
after losing our jobs. How can we trust our money with the
local banks after
people lost their savings a few years ago," said Harare
resident Colin
Mushonga, who hires out his truck for inter-city deliveries.
"I would
rather deal with more established banks, but they want a payslip to
open an
account, and I don't have it," he added.
SABC
August 07, 2006,
21:00
Thirty-three people died and more than 20 others were injured today
when a
bus burst a tyre and crashed into a valley in northwestern Zimbabwe,
state
media reported.
The Zimbabwe Broadcasting Corporation said the
bus crashed just before a
bridge in Chirundu district near a spot where 18
people were killed in
another road accident two months ago.
Dozens of
people have died on Zimbabwe's roads this year in a spate of
accidents
largely blamed on reckless driving and unroadworthy vehicles.
Analysts
say soaring prices are forcing Zimbabwe motorists to use worn-out
tyres on
their vehicles, while omitting crucial maintenance work, as the
southern
African country struggles with a deep economic crisis most
dramatised by the
world's highest inflation rate of more than 1 180%. -
Reuters
By Tichaona
Sibanda
7 August 2006
The embattled regime of Robert Mugabe
last week Friday arrested and
detained Methodist Church in Zimbabwe's Bishop
Levee Kadenge and two other
pastors in the Christian Alliance in an apparent
sign they are not happy
with the alliance's role in unifying the country's
opposition parties.
Bishop Kadenge was the convenor of the Save
Zimbabwe Convention held
last Saturday during which leaders of opposition
parties pledged to form a
broad alliance to fight Zanu PF. Pastors who were
arrested include a blind
Reverend Ancelimo Magaya and his wife, Daphne, who
also acts as his
assistant and Reverend Brian Mugwidi, also of the Methodist
Church in
Zimbabwe.
Also arrested was newspaper columnist Pius
Wakatama, who is a member
of the Christian Alliance's publicity section. MDC
MP for Bulilima in
Matebeleland South Moses Mzila-Ndlovu said the role
played by churches in
bringing together opposition parties will certainly
come under close
scrutiny from the regime because 'they are running
scarred.'
'The initiative for a broad alliance is important for
unity. It should
be used to step up the fight for democracy and this serves
to acknowledge
the fact that no one can succeed to fight for democracy when
there is a
fractured opposition,' Mzila-Ndlovu said.
He warned
however that the initiative should also involve all members
of different
political backgrounds from the grassroots level upwards and not
the other
way round. Recent initiatives by the Christian Alliance to forge a
united
opposition front have only involved discussions at the top and the
idea is
yet to be sold to the ordinary man on the street.
'As far as I know
all discussions have been held at the top but what
we need are discussions
and consultations at the bottom to gauge the mood of
the people at
grassroots level,' said the Bulilima
legislator.
SW Radio Africa Zimbabwe
news
By Tererai
Karimakwenda
7 August 2006
The four leaders from the
Christian Alliance who were arrested last
Friday were released without
charge after being questioned about the
activities of their organisation.
The four arrested were Bishop Levy
Kadenge, Reverend Chigwida, Mr. Pious
Wakatama and Reverend Magaya and his
wife. They were arrested at the Snake
Park 20 kilometres outside Harare
after a Bulawayo meeting of the Christian
Alliance leadership. Alliance
coordinator Useni Sibanda told us the police
questioned them about the
activities of the group after reports that they
were planning to form a
political party. Sibanda said those reports were
false and that the group
was apolitical. The police confiscated some
documents which Sibanda said
were public anyway and he added that the group
had no reason to hide
anything from the law.
The arrests came
nearly a week after the Alliance organised the
successful Save Zimbabwe
National Convention at which the leaders of the 2
factions of the MDC
embraced and shook hands for the first time since the
party split last year.
The Convention also involved other opposition
leaders, civic groups and
churches. The idea was to bring the political
parties together with civic
society to try and map a way towards resolving
the national crisis. It is
largely believed the arrests may have been
triggered by the success of this
Convention and that the government fears a
broad alliance that could bring
the whole country together.
Sibanda told us that even the ruling
party's officials were invited to
participate but they did not show up. He
said they had also invited leaders
from the Evangelical Fellowship of
Zimbabwe led by Bishop Trevor Manhanga
and they too failed to send a
representative. The group led by Bishop
Manhanga has been criticised for
cooperating with Robert Mugabe and inviting
him to speak at The National Day
of Prayer last month. Manhanga has insisted
that it is important to submit a
document to Mugabe with suggestions for
resolving the crisis and see whether
he is serious about saving the country.
The Alliance was formed by
clergy from different denominations who
believe the church has a prophetic
responsibility to play a role in helping
resolve the problems that have
gripped the country. Sibanda told us they
intend to remain neutral and their
role was to facilitate internal dialogue
among the different stakeholders.
He explained that it is then up to those
other civic and political groups to
decide how to move forward regarding a
solution to the current economic and
political crisis.
Soon after the arrests, The Crisis Coalition
released a statement
condemning the police action. Part of the statement
said: "It remains our
position to support processes that involve the people
in finding the
resolutions to the Zimbabwean crisis. The emblem of their
honest spirit of
uniting the opposition parties, churches and civil society
as a panacea to
the long standing crisis will remain unequalled and
appreciable by the
people of Zimbabwe. There is no substitute for the truth
and such arrests
may not deter honest Zimbabweans from facilitating nation
building."
SW Radio Africa Zimbabwe
news
Angola Press
HARARE, 08/07 - The World Health Organization (WHO) has
said the level of
air pollution in Zimbabwe`s capital city of Harare is
above set standards,
posing a serious risk of acid rain and respiratory
illnesses.
The organization said in a released here on Sunday that the
air in Harare
had a heavy concentration of sulfur and nitrogen dioxide --
products of
burning of hydrocarbons such as petrol, diesel and coal. The Air
Pollution
Information Network Africa (APINA) attributed the increase of air
pollution
in the city to the rapid expansion in the national vehicle
population and a
higher energy demand.
Energy production, industrial
processes, mining and mineral processing,
agricultural and waste management
were also some of the main sources of air
pollution, the network
said.
Thermal power stations emit large amounts of sulfur dioxide while
the
industrial sector produces large quantities of methane, nitrogen oxide
and
carbon dioxide, it said.
Zimbabwe has yet had a systematic
national air pollution monitoring
mechanism apart from random checks. The
only pollution monitoring
organization is the Air Pollution Control Unit
under the Harare City Health
Department, which carries out routine air
pollution monitoring at eight
sites, investigates complaints from residents
on air pollution and controls
open burning
New Zimbabwe
By Staff
Reporter
Last updated: 08/07/2006 11:38:25
ZIMBABWEAN President Robert
Mugabe left the country on Friday evening on a
scheduled weekly Air Zimbabwe
flight to China amid a veil of secrecy.
Mugabe's motorcade was seen
heading for Harare International Airport just
before the departure of Air
Zimbabwe's flight to China.
Several independent sources who were on the
flight confirmed Mugabe was on
board.
Mugabe's destination was
unknown.
Government sources said it was most unlikely that he was headed
for China,
the flight's destination, unless there was an undisclosed medical
emergency
which some sources in Harare have suggested was the reason for his
sudden
and unannounced departure on an Air Zimbabwe commercial
flight.
When the late Vice President Simon Muzenda was not well, he flew
to China
twice for urgent medical attention. His trips were never made
public.
Zanu PF bigwigs and and senior officials of the Chinese Communist
Party have
enjoyed cordial relations dating before Zimbabwe's independence
in 1980.
The weekly Air Zimbabwe flight to China has a stopover in
Singapore.
A government source said: "Singapore could have been Mugabe's
destination if
his sudden travel was not related to a health
emergency."
Usually the Air Zimbabwe flight to China carries high profile
shoppers who
include wives of government ministers and top female executives
who have
been making a killing from buying cheap trinkets in China for
resale at
exorbitant parallel market prices in Zimbabwe.
Suggestions
that Mugabe might have headed for Singapore were fuelled by
reports last
week that his wife Grace and children had already gone to
Singapore for
holiday following the closure of the second school term.
But the
speculation about Mugabe's destination has been energised by the
secrecy
surrounding it. The non-disclosure of the visit by the state media
which
normally reports such events has caused widespread speculation about
where
he is and what he is doing there.
Government sources told New
Zimbabwe.com at the weekend that Mugabe's latest
trip is very odd since it
was not on official business. They point out that
Mugabe never goes on
holiday outside the country in the middle of the year.
Normally, Mugabe
takes his annual holiday between December and January and
in recent years he
has preferred to spend it in Malaysia.
Mugabe traditionally officiates on
Heroes Day and Defence Forces Day due
next week and it is not clear whether
he would be back from wherever he is
in the Far East in time for those
commemorations.
To add to the confusion, ZBH's Newsnet in its evening
News Hour bulletin
last Friday referred to Vice President Joyce Mujuru as
"Acting President" in
a story filed by Freedom Moyo from Victoria Falls
where Mujuru, accompanied
by Ignatius Chombo, had addressed an inaugural
meeting of the Zimbabwe Local
Government Association (ZILGA). This seemed to
confirm that Mugabe was out
of the country.
But the reference to
Mujuru as Acting President was quickly dropped in
subsequent Newsnet
bulletins that reverted to calling her Vice President.
This abrupt behaviour
by Newsnet was followed by rife speculation about
Mugabe's whereabouts and
his health condition.
Zimbabwe's Deputy Information Minister Bright
Matonga had not responded to
an interview request late
Sunday.
Mugabe's deteriorating health has been the subject of frenzied
speculation
in recent years. A few months ago, he was seen leaving a South
African
clinic with his wife, Grace.
Zimbabwean authorities maintain
that Mugabe is "as fit as a teenager".
New Zimbabwe
By Staff
Reporter
Last updated: 08/07/2006 09:42:14
THE Zimbabwe Government has
ordered a freeze of prices on all commodities
for the next two weeks as the
country switches to a new set of banknotes,
reports said on
Sunday.
Retailers, wholesalers and manufacturers have been ordered not to
raise
their prices until after August 21 or face stiff fines, Industry
Minister
Obert Mpofu was quoted as saying in the state-controlled Sunday
Mail.
"No trader, manufacturer, wholesaler, dealer or retailer of any
commodity
shall increase the price of that commodity by any amount," Mpofu
said.
Last Monday, Zimbabwe's Central Bank chief Gideon Gono unveiled a
new set of
banknotes with three fewer zeros to help Zimbabweans battle
against
ever-increasing prices and inflation of close to 1 200%.
He
gave individuals and businesses until August 21 to bank all their old
notes,
after which they are expected to become worthless.
But following the
announcement of the new measures and the trickling in of
new banknotes, some
shops and businesses have hiked their prices instead of
just dropping three
zeros.
Mpofu ordered that any price increases effected since August 1
when the new
banknotes came into circulation be reversed - Sapa
New Zimbabwe
By Staff
Reporter
Last updated: 08/07/2006 09:43:30
FIRE swept through maize crops
at a farm belonging to Zimbabwe's central
bank chief Gideon Gono as he vowed
to press on with unpopular currency
reforms despite intimidation.
The
fire broke out at Gono's farm in Norton, 40km from the capital Harare on
Friday, four days after Gono said Zimbabweans had less than a month to hand
in small amounts of old banknotes to the banks.
Police have begun
investigations into the blaze amid suspicion it may have
been deliberately
started, the state-run Sunday Mail said.
The Mail also raised fears for
Gono's life by reporting on a mystery "armed
gang of smartly dressed men"
driving in a "4x4 double cab vehicle" which is
said to have caused chaos at
Gono's flower project in Norton on Thursday.
The men are said to have
asked for the governor's residential address before
beating a hasty retreat
following confrontation with security staff.
A day after the incident,
the paper reported, a fire swept its way through
the bank chief's maize
crop, spreading to neighbouring farms. It took more
than seven hours to
contain the fire.
President Robert Mugabe said last month some top
officials wanted to see
Gono dead because of his anti-corruption and
anti-inflation drive.
Gono has vowed to press on with his mission to turn
Zimbabwe's failing
economy around.
He told the Mail: "There is no
amount of intimidation that will force me to
abandon the task at hand. I
will not let the presidium and the majority of
the people of Zimbabwe
down.
"The mission will not fail."
Last Friday, the
privately-owned Zimbabwe Independent newspaper reported
that senior
officials within Zimbabwe's ruling Zanu PF party feared Gono was
"now
angling for the presidency."
Gono, the paper said, has provoked a "storm
of anger". The paper said
private political meetings were being held by
ministers, including one at a
local restaurant where one minister is said to
have suggested that "Gono has
gone too far and must be stopped now." -
Sapa/Staff Reporter
IOL
August 07 2006 at
08:43PM
Harare - A top cabinet minister in Zimbabwe has issued a
formal
warning to people apparently trying to harm Reserve Bank Governor
Gideon
Gono because they are against his currency reforms, it was reported
Monday.
State Security Minister Didymus Mutasa said threats against
Gono were
deplorable and warned that people trying to derail the central
bank chief's
economic turnaround programme would be brought to justice, the
official
Herald newspaper reported.
Last week Gono announced a
60 per cent devaluation and a shock
currency change, giving individuals and
companies just three weeks to hand
in their old banknotes.
Since then more than 2 000 people have been arrested as police clamp
down on
people suspected of hoarding and illegally exporting Zimbabwe's old
notes.
The action has provoked panic in some
circles and some top officials
are clearly unhappy with Gono's reforms. Gono
has complained of intimidation
in the wake of a huge fire that swept through
his Norton farm on Friday,
destroying a maize crop.
"Government
is not happy with the threats directed at Dr Gono," Mutasa
said.
"Dr Gono is not acting on his behalf, but on behalf of
the government
of Zimbabwe and its people. Anyone who now wants to threaten
or injure him
is acting against the interests of the government and its
people," said
Mutasa.
Speculation that Gono might be angling
for the presidency is said to
have heightened the anger of some top ruling
party officials. - Sapa-dpa
Mail and Guardian
Percy
Zvomuya
07 August 2006 09:03
It has been
described at once as "historic," "symbolic" and an
incident to be handled
with caution. But what should really be made of the
meeting of opposition
leaders that saw rivals Morgan Tsvangirai and Arthur
Mutambara hugging and
pledging to work together? Tsvangirai heads the main
anti-Senate grouping of
the opposition Movement for Democratic Change (MDC)
while Mutambara leads
the pro-Senate camp. The two had never met in public
since Mutambara joined
the political fray earlier this year.
While Tsvangirai's
secretary, Tendai Biti, described it as
"important" and "historic", some
analysts don't want to read too much into
the meeting. "I don't want to
invest much importance into the meeting,"
University of Zimbabwe analyst
Eldred Masungunure said this week. "A lot of
ground has to be covered before
they have a common position on the problems
bedevilling the
country."
The meeting, convened by the Bishop Levee
Kadenge-led Christian
Alliance, included a broad section of civic and
political leaders. The
Harare meeting was attended by leaders of smaller
opposition parties as
well, including Daniel Shumba of the United People's
Party, Zapu Federal
Party's Paul Siwela and Wurayayi Zembe of the Democratic
Party.
Masungunure argued that the conditions Mutambara set
for unity
are similar to those that created the split in the first place.
Mutambara
said he was prepared to surrender his presidency under a broad
alliance, on
"condition that we return to the founding values of the MDC,
which include
non-violence and respect for the
Constitution".
Masungunure was pessimistic, noting that the
"two are not likely
to meet beyond the physical meetings". While welcoming
the meeting, Jonah
Gokova of the Christian Alliance spoke of it as a
beginning. "There is a lot
of work that needs to be done. For now there is
just that handshake. But it
has opened doors for further communication. They
should be encouraged," he
said.
Gokova said internal
dialogue was essential before the country
engages foreigners. Turning to
former Tanzanian president Benjamin Mkapa's
mediation attempts in Zimbabwe's
dispute with Britain, Gokova said that
"Mkapa must have an agenda that
emphasises the fact that Zimbabweans must
have dialogue among themselves.
Dialogue between Zimbabwe and Britain is
secondary to the dialogue among
Zimbabweans ourselves."
The delegates emphasised the need to
form a broad-based platform
in the fight for democracy, the urgent need to
come up with a new
Constitution, the adoption of a democracy charter
ensuring equality among
all Zimbabweans and the need to engage regional and
international
organisations in creating a better understanding of the
Zimbabwean crises,
with a roadmap for forcing the government to the
negotiating table.
Additional reporting by
Irin
'It's sanctions, stupid'
A joke doing the
rounds on Harare cellphones is that the central
bank boss was being
dishonest in removing zeros to stabilise the currency.
"He can't cheat us,
we know which zero should be removed," the SMS says
without elaborating, but
hinting at President Robert Mugabe.
By eliminating three
zeros on Zimbabwe's local currency, a
country whose national budget was
running into trillions, the central bank
boss is "addressing symptoms, not
causes", analysts have warned. Inflation
has soared above 1 000% and
continues to wreak havoc, creating nightmares
for the central
bank.
But Reserve Bank Governor Gideon Gono blamed the
economic
meltdown on "sanctions, stupid", while the opposition Movement for
Democratic Change (MDC) believes it is "politics,
stupid".
"By removing zeros, you are not addressing inflation
at all,"
says MDC secretary general Tendai Biti. "It's like an ugly person
who looks
in the mirror, sees his ugly face, but instead of having plastic
surgery,
breaks the mirror," he said.
Gono said
international sanctions imposed on Zimbabwe for
human-rights violations were
hurting the economy, hence contributing to the
hyperinflationary
environment.
While Gono juggles with the consequences of the
introduction of
the new bearer cheques, a rush is on to deposit bank bearer
cheques to beat
the August 21 deadline.
The old bearer
cheques in circulation will cease to be legal
tender in three weeks.
Individuals are being made to account for any amount
above $100-million they
deposit, while retail outlets have been barred from
selling goods of an
equivalent amount. -- Godwin Gandu
The Voice, UK
Government faces
$15m test case before international tribunal
An international tribunal is to
hear a case involving 11 Dutch farmers whose
lands were repossessed in
Zimbabwe under President Robert Mugabe's land
repossession
scheme.
The Dutch Farmers Association, with UK-based AgricAfrica,
registered the
case on behalf of the farmers at the International Centre for
the Settlement
of Investment Disputes, a World Bank resolution forum. The
claims total more
than $15m.
The case has been brought in terms of a
bi-lateral investment treaty between
the Netherlands and Zimbabwe. According
to the treaty, the Zimbabwean
government has promised to pay compensation to
Dutch nationals in the event
of a dispute arising out of an investment in
Zimbabwe.
FARMERS
Arbitrators are expected to hear the case by the
end of August. Should the
ruling by the tribunal be favourable, it could set
a precedent for similar
claims against Zimbabwean President Robert Mugabe's
government in the
international courts.
The centre's rulings are
enforceable in the 140 states that have ratified
the organisation's
convention. Three arbitrators will consider the matter.
The Zimbabwean
government is permitted to choose one arbitrator.
AgricAfrica chairman
Bob Fernandes used to work as a property valuer in
Zimbabwe. Since the land
invasions began in 2000, he has been involved in
the valuation of more than
3000 title deeds of Zimbabwean agricultural
properties.
He said the
body created by Zimbabwean farmers, Justice for Agriculture -
which helped
bring cases to the Zimbabwean courts, many of which resulted in
favourable
rulings that were not obeyed by the government - had set a good
precedent
that should see the Dutch farmers' case being successful.
The case has
been partly funded by the Open Society Initiative for Southern
Africa, a
nonprofit organisation.
More than 4,000 white-owned commercial farms have
been seized by the Mugabe
regime since 2000.
The government last
year, passed laws that nationalised the farms, barring
farmers from
challenging the seizure of their property in courts. Economists
and critics
say the policy has ruined a once-thriving agricultural sector.
Zimbabwe
Security Minister Didymus Mutasa, who heads land reform and
resettlement,
said recently that those with farms covered by international
bilateral
agreements would receive full compensation and had the right to
contest the
seizures in court.
But Fernandes said while the Zimbabwean government had
offered some
compensation to dispossessed farmers, it amounted to less than
10% of the
value of the expropriated land.
"With the current rate of
inflation, it means farmers would be paid a
fraction of what the farms are
worth. If the arbitration (is successful),
the compensation will reflect the
farms' true worth," he said.
"It will also set a precedent for claims by
the rest of the farmers."
COMPENSATION
Should the Dutch farmers'
case succeed, the Zimbabwean government will have
to pay the amount awarded,
further straining the cash strapped nation.
Once liability is
established, the arbitrators will set the amount the
former farmers are
owed. This should happen by the end of January at the
latest. The centre's
association with the World Bank may be an added
incentive for Zimbabwe to
settle the Dutch group's claim.
"If it refuses to pay, the law allows for
Zimbabwe's assets to be seized in
any one of the 139 countries that signed
the New York convention on the
recognition of arbitral award," said
Fernandes.
"But this is unlikely to happen as every compensation ruled on
in the past
has been paid."
The Zimbabwean government has vowed not
to pay white farmers compensation
for the land, only for improvements,
arguing that former colonial power
Britain should pay for the
land.
According to state television, the issue of farms covered by
bilateral
agreements has been contentious, forcing the government to set up
a
committee to look into foreign land holdings. The committee is chaired by
the foreign minister and comprises Mutasa and central bank officials. It
will determine whether to "compensate and acquire, give back the farm to the
former owner, or move the settled people," state television
said.
Mugabe defends the land reforms as necessary to redress colonial
policies
that put 70% of the most fertile land in the hands of a few white
farmers,
and accuses the West of sabotaging the economy to punish him for
the land
seizures.
Published: 07 August 2006
Issue: 1230
The Citizen
HARARE -
Poachers have killed at least nine rare black rhinos in a
conservation area
in central Zimbabwe, the state-controlled Herald reported
Monday.
"We
have lost at least nine black rhinos from Midlands Conservancy," said
Geoffrey Matipano, a spokesman from the state-run Parks and Wildlife
Management Authority.
Poaching is said to be on the increase in
cash-strapped Zimbabwe where
wildlife officials battle with ever-dwindling
resources that stop them from
effectively safeguarding rare game.
The
black rhino is particularly sought after by poachers because some of its
body parts can be sold to Asia and the Middle East for use in traditional
medicines.
The government needs more resources, especially aircraft, if
it is to fight
the poachers effectively, said the head of the Parks and
Wildlife Management
Authority, Edward Mbewe.
"The tracking part also
calls for specific equipment that we do not have in
some of our protected
zones. Enhancement can also be achieved if we manage
to hire aircraft for
effective monitoring," Mbewe was quoted as saying.
"This system is not yet
working in some rhino havens and monitoring of the
species becomes a major
challenge because we will only be relying on foot
patrols," he
added.
Several black rhinos were killed on a farm in western Zimbabwe last
year.
The farm had been seized under the government's controversial land
reform
programme. - Sapa-dpa.
New Zimbabwe
By Mutumwa D.
Mawere
Last updated: 08/07/2006 08:35:54
AT 26, Zimbabwe finds itself
mired in an economic and political crisis of
unprecedented proportions. The
root causes of such a crisis are as elusive
as solutions offered and yet the
symptoms of a dying patient are obvious to
all.
The past two weeks
have seen the three major actors in the Zimbabwean drama
giving their
perspectives and prescriptions to the economy. The President
opened the
salvo with his address to Parliament setting out the legislative
agenda
notwithstanding the fact that the Reserve Bank of Zimbabwe is now the
only
centre of power and the legislature's relevance has been systematically
undermined by an executive that has craftily used a self generated crisis to
convert a seemingly democratic state into an outsourced
dictatorship.
The President's ritual address to Parliament was then
followed by the
Minister of Finance's fiscal policy package introducing a
historic
supplementary budget while acknowledging that he was a curtain
raiser to the
Governor, Gideon Gono.
In the Shona language, "Gono"
signifies masculinity and no wonder the centre
of power has shifted to the
man with the balls to cure the country's
problems. It is important that we
understand the context and content of the
so-called monetary measures
announced by the Governor if we are to better
assess the competence or
otherwise of the man the President has decided to
outsource the
macro-economic, security, and law enforcement functions of the
state.
It is evident that the President is of the view that the
economy is under
siege and, therefore, requiring unorthodox solutions.
Accordingly, the use
of emergency powers is justified and hence the
delegation of the powers of
the state to the man who is not afraid to use
power. A friend of mine
recently observed that power must be used by those
who have it so that those
who do not have it can be intimidated into
submission. If there is a state
of emergency and the organs of the state
i.e. the executive, legislature and
the judiciary are not capable of
responding to the crisis of the day, then
it is argued that the country has
no choice but to allow a bull to take
control and shepherd the people to the
Promised Land.
The construction of the President's logic is clear that
Zimbabwe is a victim
of a conspiracy of domestic and international forces
determined to ensure
that the liberation project is reversed and undermined.
Some of the
detractors are in the legislature in the form of the opposition
MDC who are
seen as agents of the British and their collaborators.
Accordingly, it would
not make sense to engage Parliament on the nationally
sensitive issues like
monetary policies or to expect the government to
account to a legislature
contaminated by the British.
It is no wonder
that both the President and the Minister's addresses to
Parliament were
short on specifics deferring to the unelected and
unaccountable Gono to do
the hatchet job. Although the opposition is acutely
aware that they are not
part of the deal, they have continued to remain in
parliament for what has
been described as economic and financial reasons.
Both the MDC factions are
at one on the need to continue to be part of an
institution which the ruling
party considers irrelevant in solving the
problems of the
country.
While some may argue that the economic and political crisis in
Zimbabwe is
self generated, it is important that the Project Sunrise
announced by Gono
be understood. If one accepts that out of light comes
darkness and in turn
out of darkness comes light, the coining of the
monetary measures under the
banner "project sunrise" means that the Governor
and his backers firmly
believe that they have a sustainable and viable
solution to the problems and
they can see the light when other people see
darkness and gloom. It is also
evident that the construction of the new
measures is based on a mistaken
analysis that criminality is a contributor
to the crisis and that such
conduct is driven by unpatriotic
motives.
Given the analytical and conceptual framework that informs the
so-called
project sunrise, it is not surprising that daylight brings
intimidation,
arrests and a public relations exercise that seeks to
subordinate citizens'
constitutional and legal rights in preference for a
social compact
underpinned by an assumption that the behavior of economic
agents must be
based on state defined rationality and not on enlightened
self interest.
Under this framework, people are expected to blindly have
confidence in a
banking system against a backdrop of a failed state that is
largely
responsible for eroding the value of money through irresponsible and
criminal fiscal and monetary measures.
In a hyper inflationary
environment, citizens are expected to place their
limited and diminishing
financial assets in banks while prices of goods and
services are changing
every minute with no visible light at the end of the
tunnel. One can argue
that Zimbabweans by stashing their cash outside the
state-discredited
financial and banking system, were behaving rationally and
if Gono was
rational, his attention would be focused on rooting out the real
causes of
the crisis. To what extent is the government responsible for
condemning
people to use non-banking instruments as a means to protect their
interests
is a question that seems to have escaped the attention of the
possessed
Gono.
The kind of naivety that informs the project sunrise and Gono's
policy
prescriptions can best be exposed in the context of the foreign
exchange
market. In Gono's world, Zimbabweans are expected to be irrational
by buying
and selling their foreign currency at an arbitrarily determined
exchange
rate when the market suggests otherwise. Even under the new
measures,
citizens will be expected to surrender their foreign currency to
the market
at Z$250,000 to US$1 and yet the real market exchange rate is
around
Z$600,000 to US$1. If you decide to act rationally and seek the
maximum
value for your US$, you risk being arrested and Zimbabweans are then
expected to accept that this is the kind of day they should expect after
sunrise.
One would have expected the project sunrise to bring
daylight and restore
the rights of citizens to exercise their own choices in
their own self
interest. Any policy instrument based on a mistaken belief
that the state
knows better than the individual to him it should look to for
economic
salvation is bound to fail. Instead of describing the project as
sunrise, I
believe that when one carefully analysis the context and content
of the
measures, it is more appropriate to describe the project as a sunset
initiative designed to throw the country into darkness before the great
awakening. Only a blind economist would characterize a policy framework that
places the Governor of a Reserve Bank at the centre of a series of public
relations stunts which undermine the rule of law and human rights as a sign
of progress.
The Governor should have asked himself some fundamental
questions before
behaving like the infantry whose brains are in their shoes
and who only
respond to commands. He has chosen not to behave like a general
who should
fight a battle before the battle by properly analyzing the
situation and
planning the battle. The questions are quite obvious and
simple. Why would
citizens decide to shun banks if banks promoted their
interests? Is
inflation caused by so-called criminals? What is the link
between the black
market and obsolete exchange controls? Why would a
governor need the youth
brigade, security agents, and the whole state
machinery to enforce good and
well meaning policies? Are targeted sanctions
the root cause of the crisis?
What is the link between quasi-fiscal policies
being implemented by the RBZ
and inflation? Can business operate in an
environment characterized by fear?
What is the difference between
confisticating someone's cash and
expropriating private property? What are
the constitutional implications of
the actions of the RBZ? Is cash in my
possession my property or the property
of the state? With respect to foreign
currency, whose property is it? Does
the state have the right to force
citizens to make suboptimal choices by
exchanging their rights to foreign
currency at prices determined by the
state? Are his policies that can only
be effective under a police state
sustainable and in the interests of nation
building?
I set out below some of the salient features of the monetary
statement
announced by Gono.
* Announced "Project Sunrise", focused
on SME development and the removal of
3 zeroes on the currency from August 1
through the introduction of a "new
family of bearers cheques". 21 days to
change to new family of bearers
cheques. Launched "zero to hero" marketing
campaign, which involves the
replacement of currency. Cents reintroduced,
but in note form. The removal
of three zeros has no material bearing in
changing the fundamentals of the
economy. It is a convenience gimmick
located in the misplaced strategy to
root out inflation when the only remedy
to inflation is a sustained supply
response on the back of policy measures
that are grounded on reality. A
climate that promotes investment and
development cannot exist in a vacuum
and through currency changes. The
architecture of the economy requires a
radical change. Inflation has been
simply described as too much money
chasing few goods. To be a real hero
requires more than removing zeros. Even
the late Idi Amin could do
better.
* Holders must produce source of bearers cheques funds if in
excess of $100
million for individuals or $5 billion corporates. If you
cannot produce
evidence of source of funds, cash will be deposited into
"anti-laundering
bond" for 2 years at 0%. If this is not an overt
expropriation of private
rights then we need to redefine nationalisation. A
total of 1 116
individuals and companies have been arrested and more
billions in old bearer
cheques have been deposited into banks as part of the
unprecedented joint
operation by police, State security agents and officials
from the Reserve
Bank of Zimbabwe (RBZ) in which the Governor is playing the
role of not only
an evangelical and moral regeneration leader but also the
super cop. The
media is already polluted with the supporting propaganda
targeting rational
economic actors as criminals. Under what legal
construction does the state
have a right to confisticate citizens' cash and
deposit it into bonds
without the consent of the property owner? How does
this form of
intimidation resolve the economic crisis?
* Daily cash
withdrawal limits have been restricted to: Individuals $100 000
($100
million in old bearers cheques), Corporates - $750 000 ($750 million
in old
bearers cheques). RBZ outside its mandate will now be carrying out
"measures" to make sure asset prices will be properly rescaled. Under what
construction does the RBZ have the right to determine asset prices in a
market economy? Going forward, all payments of more than $1 mln will be
monitored by RBZ anti-monitoring laundering. It is not clear what monitoring
means but those who chose to oppose the Governor and his measures will
discover that this is a new weapon in undermining democracy. Imagine those
who are interested in politics what havoc these measures will inflict on
those who choose to think differently. Who is really laundering money - the
RBZ or the citizens? When are the books of the RBZ going to be exposed to
the public to determine whether the bank under Gono is operating
transparently and in accordance with its mandate?
* Gono said that
new bearers cheques are not the "panacea for inflation, but
will "improve
convenience". He also said that this was not a "currency
replacement"
programme but Phase 1 of a process. "Phase 2" has already "been
planned" and
will result in the replacement of the new currency within 7
days.
*
Border posts will be manned by Zimra, ZRP and "youths" to investigate the
"illegal" export and import of local currency. This was justified on the
basis that the authorities could only account for $10 trillion of the $43
trillion in circulation. Why would you need the youths, Zimra and ZRP when
in a democracy? Who are the youths accountable to? Could this be a prelude
for a presidential election by an unnamed candidate? Anyone caught with
currency in excess of $5 million risks being harassed and not only being
prosecuted but losing his/her money.
* Interbank exchange rate moved
to $250:US$1 ($250 000 in the old bearers
cheques) in the interim. Announced
the introduction of Exchange Rate Impact
Assessment Board made up of
broad-based group of unnamed individuals
(Friends of Gono or FOG). He did
not provide any indication of how the rate
will be set, but as usual made
reference to "patriotism" as the key aspect
and not a rationally determined
process taking into account market
fundamentals. Advisory boards are being
abused when in truth and fact it is
only one man who makes the
call.
* Secured accommodation rate dropped to 300% from 850%. Unsecured
accommodation decreased to 350% from 900%. Statutory reserves were decreased
further as a mechanism for stimulating banks to lend. Demand and call
deposits dropped to 40% from 45%, building societies to 30% from 35% and
finance houses to 15% from 20%. Banks were required to "reciprocate" by
lending to the productive sectors. Incentives are considered as a bribe to
induce economic agents to behave irrationally by directing credit instead of
setting the right policy framework that will allow actors to make rational
choices in their own self interest. As usual RBZ will "dictate measures" if
banks do not conform to the economic blackmail by the Governor that is to be
selectively applied. Banks were ordered to roll over Aspef funds for the
next 12 months.
* Gold companies to retain 75% in gold proceeds in
FCA from 40%. Gold
support price was abandoned, and will receive
international price at "the
ruling market exchange rate". However, the same
companies will need local
resources and they will have to convert their
foreign currency at the
artificially determined exchange rate. Against a
backdrop of hype inflation,
the so-called accommodation will be eroded by
inflation. This policy
encourages externalisation as a way of getting
foreign currency and
recycling it back into the economy through the black
market. Gold companies
who do not have import requirements will not
benefit.
* Exporters to retain 75% of earnings in FCA from 70%
previously. Only a 5%
adjustment but there is no indication of where the
additional foreign
currency will come from to meet the obvious
demand.
* Announced Tobacco Performance Research and Development Facility
which will
award 65% of sale value delivery price at the old exchange rate
at the end
of August. This is over and above the 35% already given. Farmers
given 15%
FCA retention facility with no liquidation or expiry
limits.
* Conceded that there has been quasi-fiscal expenditure due to
the usual
reasons, corruption, etc, and "extraordinary intervention" is
required to
address the "further deterioration of infrastructures and
parastatals". NRZ
is "leading the revival of parastatals". Some were
described as still
"hopeless cases" and it is not clear whether in truth and
fact the RBZ is
also not a hopeless case.
* Announced creation of $16
trillion ($16 billion at old bearer cheque rate)
SME Development Fund to
loan money at 70% to construction projects, mining,
and others. Fund split
on provincial lines and demographic areas and will
"benefit 2 mln people".
Is this a prelude to an election campaign? Harare
gets $2.5 trillion
facility. Bulawayo and other provinces $1.5 trillion.
Corporates need to
have "quotas" to procure from SMEs, but will get higher
forex retention if
they cooperate. When the state rewards economic actors
with incentives in a
politically charged atmosphere there is reason to be
concerned. How will the
so-called cooperation be measured? Who is going to
measure the co-operation?
What is the risk that only supporters of the
ruling party will be rewarded
with higher retention rates? How is the
politicisation of the RBZ going to
assist or retard the democratisation
project?
* Blamed high inflation
on "growth in money supply", but also the
"benchmarking of prices on foreign
exchange parallel rate". M3 apparently
running at 609% by end of May from
528% at end of 2005. To what extent if
Gono responsible for the high
inflation? Who will apply sanctions to a RBZ
that steals the future of its
citizens through irresponsible printing of
cash while taking the high moral
ground to blame other people? Why is the
opposition silent? Why is it that
even Professor Moyo would dare not
criticise Gono choosing to target the
sunset man-Mugabe and Murerwa? Could
it be that Moyo is also a beneficiary
of Gono's incentives as other leaders
of the opposition? What makes Gono
immune from criticism when the facts show
that the cause of inflation can be
squarely located at him?
* A2 farmers will no longer be allowed to have
fuel at subsidised rates.
* Forex inflows in half year to June 30 were
reported to be up by 15.2% at
US$961 million (US$834 million). US$340
million was reported to have come
through the RBZ and the balance into
company's FCA from exports. Foreign
debtors as of July 25 amounted to US$223
mln, which the Governor said would
be realised over the next 90
days.
* Gold deliveries declined 31% in half year to June prompting the
policy
shift. 2005 deliveries amounted to 13.4 tonnes from 21.3 tonnes in
2004.
* Platinum was reported as a "success story" and hence the special
deals cut
with the foreign companies and the centralisation of policies to
the RBZ.
* Gono conceded that there will be need to import maize "but
deficit is not
as large".
* Gono detailed the "3 vices" -
indiscipline, corruption and speculation -
and added a 4th: "bureacratic
sloth and inertia" that keep throwing up
"unnecessary road blocks" place an
"intolerable burden on the economy". He
admitted that there have not been
enough resources devoted to fight
"corruption". To what extent is the RBZ a
custodian of corruption and the
other vices is not discussed. There is
evidence that corruption is being led
from the front by none other than the
RBZ who has chosen to appropriate
incentives while classifying the same
incentives as evidence of corruption
to targeted individuals. There is no
independent body that can track and
monitor corruption. Why would the RBZ
Governor also be subject to the same
scrutiny that he subjects the rest of
the country? Would it not make sense
for parliament to ask for an
independent commission of inquiry to
investigate Gono's own actions before
he can assume the role of a moral
crusader while at the same time being a
villain?
* He said that NEDPP inward investment programmes to shortly
come to
fruition, but says will be pre-empting agreements. The whole program
is
being conducted in the cover of darkness when one would have expected the
sunrise to bring transparency. What is being traded to bring new investment
is not disclosed? It may not be surprising to find that one individual has
mortgaged the whole country in the name of a national initiative.
*
Gono had announced an ambitious program under which he expects that by
December 2008 with the implementation of the aggressive "National SME
programme", Zimbabwe will achieve:
- single digit inflation
- secure
and stable financial sector
- a strong currency, "market driven" exchange
rates
- single digit unemployement
- will have food, fuel and power
self-sufficiency, and "export surpluses"
- paying off arrears.
* It is
not new for Gono to make promises that he will not fulfil. However,
we are
sure to see that new enemies will be created to explain failure for
the
Governor will never fail. He proposed that Zimbabwe will be the "most
attractive investment destination" by December 2007 without explaining how
this was to be achieved. Equally he was vague as usual on how inward
investment programme was to be achieved.
Although there may be debate
about the place of Gono in Zimbabwe's history,
one cannot dispute the fact
that he has balls and single-handedly he may
switch off the flicker of light
that remains in Zimbabwe supporting the
cynics who believe that he may have
been God sent to complete the Rhodesia
Ruins project where all the surviving
and functioning systems and
institutions inherited and established after
independence will form the
foundation of the ruins.
If Gono's
policies are premised on defying economic principles and replacing
them with
a pedestrian logic, then one cannot accept the proposition that
project
sunrise has something to do with an economic re-start but rather a
determined attempt to ensure that the legacy of misplaced policies and
programs that Zimbabwe has unfortunately been subjected to for 26 years will
be perpetuated under a dictatorship similar to what the Germans and Italians
experienced under Hitler and Mussolini. It would be foolhardy if those in
opposition do not critically analyse the Gono phenomenon and the methods
used and implications on democracy and governance. If ever there was a time
for the opposition to review their position on remaining in the legislature
this may be the time. Gono's actions may just be another wake up
call.
Mutumwa Mawere's weekly column appears on New Zimbabwe.com every
Monday. You
can contact him at:
OhMyNews, Korea
Vote rigging results in corruption
Nelson G. Katsande (NELKA)
Published 2006-08-07 13:43
(KST)
Arthur Augustus Calwell, an Australian politician,
once said, "It is
better to be defeated on principle than to win on lies."
In modern day
Zimbabwe, that statement seems to be haunting President Robert
Mugabe.
In the March 2002 general elections, Mugabe retained power
by
promising land, equipment, and machinery to peasant farmers, food and
jobs
to the electorate. But four years later, none of those promises have
been
fulfilled. Jobs are scarce as industries continue to fold. People who
were
resettled prior to the elections are once again being evicted. The few
chosen ZANU-PF supporters lucky enough to remain on allocated pieces of
land, continue to till it with their bare hands.
Now the people
have realized that they were duped into voting for
Mugabe and have vowed
never to make the same mistake again. The opposition
Movement for Democratic
Change (MDC) refuses to endorse Mugabe's presidency.
Although Mugabe was
reelected, opposition leaders and independent observers
have noted that the
electoral register was flawed and that the incumbent
government had rigged
the elections. Mugabe denies these allegations, but
facts on the ground say
otherwise.
After the death of my father in October 1996, I
furnished the
electoral office with a copy of his death certificate so they
could update
their records. However, I continued to receive electoral mail
addressed to
him. Surprisingly, in the 2002 elections, he was still
registered as an
eligible voter. This was not an isolated case, as more and
more fictitious
names were found on the electoral register
countrywide.
Despite the convincing evidence of the voters roll,
Mugabe was adamant
that the elections were aboveboard. Aboveboard? What
about these
irregularities?
In November 2002, Joseph Made, the
agricultural minister, announced
that the land invasions were over and that
anyone seen occupying white-owned
farms would be prosecuted. This brought a
sigh of relief to the farmers, but
their relief was short-lived as Joseph
Chinotimba, a liberation war veteran,
began mobilizing the people for more
farm invasions. The government kept mum
as more disruptions on the farms
continued.
Even the finance minister at the time, Dr. Simba Makoni,
publicly
acknowledged that the country was in serious economic trouble due
to the
farm invasions and warned of serious food shortages. Mugabe was not
amused
and felt the minister was sympathetic to the white farmers. Makoni
was later
sacked from the government.
As pressure mounted on
Mugabe to relinquish power, in 2005 he left
more than 800,000 people
homeless after ordering the militia to demolish
what he called "illegal
shanty dwellings." These demolitions only took place
in towns and cities,
the opposition's stronghold. Mugabe may still recall
that these dwellings
had been in existence since 1980, and it beggars belief
as to why it took
him 25 years to realize the structures were illegal. It
was not the legality
of the buildings that resulted in the demolition, but
urban dwellers'
support for the opposition.
Corruption in Zimbabwe has now reached
unprecedented levels. Some
government ministers, police officers, and other
officials, in both private
and public sectors, are now enriching themselves
through illicit deals. A
senior assistant police commissioner stationed in
the Midlands province is
currently on trial for corruption. He is alleged to
have solicited a bribe
from a white farmer in order to spare his farm from
occupation.
By
Lance Guma
07 August 2006
On the day Zimbabwe United
Passenger Company (ZUPCO) Chairman Charles
Nherera was convicted on
corruption charges, magistrate Lilian Kudya said
local government minister
Ignatius Chombo also had a case to answer. Last
Friday the magistrate
blasted Chombo's evidence in Nherera's trial as
leaving a lot to be desired
before she urged the police to 'dig deeper' into
the case. The case against
the ZUPCO chief is that he solicited bribes from
South African based Gift
Investments for the supply of buses to the state
owned company. He would
have made at least US$85 000 in kickbacks for the
purchase of the buses if
he had succeeded.
The high profile case has sucked in Deputy
Information Minister Bright
Matonga, who was formerly the ZUPCO chief. He
was arrested a few weeks ago
on allegations of soliciting a bribe from
Jahesh Shah who was seeking a
tender to supply buses. Magistrate Kudya noted
in her ruling 'in essence, in
particular the two witnesses' evidence left a
lot to be desired. The court
is of the view that if the police were to delve
deeper into it, they would
be able to get to the bottom of what exactly was
happening as regards the
purchase of these buses.' The magistrate accused
Chombo of admitting he
received a cheque from Shah before trying to cover up
by saying he received
money from many other companies during his election
campaign.
Kudya found Chombo's evidence was contradictory in that
respect. She
said: 'On one hand, he appeared to have been content with ZUPCO
getting
buses from Mr Shah to ease the transport shortages because he had
earlier
supplied buses, yet on the other hand, he seemed to be labelling him
a liar
and unworthy business counterpart.' Its early days yet but the
conviction of
Nherera does not bode well for Chombo and Matonga. Observers
say the Zanu PF
succession battles might be at the centre of all the latest
corruption drama
with potential foes and friends being subjected to all
sorts of exposures
depending on influence.
The head of
Transparency International (Zimbabwe Chapter) Dr Goodwill
Shana says the
case is typical of Zimbabwe where you have the small fish
getting caught
while the big ones walk away. He does not hold out much hope
that people
like Chombo and Matonga will face justice. Dr Shana bemoaned the
devastating
impact corruption has on any country's economy saying this
hindered
development. Asked whether the cases currently hitting the
headlines were
linked to the Zanu PF succession dispute or a genuine
anti-corruption
crusade, Dr Shana said everything in Zimbabwe was now
political. Politics
was driving the agenda in his view and a genuine
political will from the top
was needed to arrest corruption.
SW Radio Africa
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