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Police hunt Mugabe ally in black market case

Reuters

Mon 24 Dec 2007, 17:00 GMT

HARARE (Reuters) - Zimbabwe police have launched a manhunt for a senior
official in President Robert Mugabe's ruling ZANU-PF party in connection
with an investigation into illegal foreign currency deals, police said on
Monday.

Police spokesman Wayne Bvudzijena told Reuters detectives want to interview
David Butau, a businessman and ZANU-PF member of parliament from Mashonaland
Central province, an area which has traditionally shown solid support for
Mugabe.

State radio also broadcast frequent appeals for Butau to turn himself in.

"We want to question him in connection with a case involving the
externalisation of foreign currency," Bvudzijena said. "We just want to seek
clarification and it's urgent that we talk to him, but we can't find him."

Central bank governor Gideon Gono has accused officials in Mugabe's party
and government of fuelling black market trading of foreign currency, which
is in short supply as a result of a deep economic crisis in the southern
African nation.

Inflation has skyrocketed to almost 8,000 percent.

Gono said officials, working with some businesses, were also behind the
serious cash shortages that have seen thousands of consumers besiege banks
ahead of the Christmas holidays.

The central bank last week introduced Z$750,000 (about $6 (3 pounds) at the
official exchange rate but just $0.12 (6 pence) on the black market),
Z$500,000 and Z$250,000 notes to ease the shortage. The highest banknote
still cannot buy a loaf of bread, which costs between Z$800,000 and Z$1
million.

(Reporting by Nelson Banya; editing by Paul Simao and Matthew Jones)


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Alleged cash baroness 'still in custody'

IOL

     December 24 2007 at 09:55AM

The Harare woman who was arrested on Saturday evening while in
possession of ZIM$10-billion worth of new Zim$500 000 bearer cheques is
still in police custody, Zimbabwe's Herald online reported on Monday.

The woman was assisting police with investigations and had been taken
for questioning at the serious frauds section.

Several people telephoned The Herald, asking how one person could have
Zim$10-billion of the new bearer cheques, barely four days after their
introduction.

The callers also wanted the high-ranking official reported to be
connected to the woman named, as well as the source of the money, the
website reported.

If it was withdrawn from a bank, the concerned bank should also be
named and action taken against it, irate callers said.

"Individuals can withdraw a maximum of [Zim]50 million a day while
companies can withdraw up to [Zim]750 million," the Herald said.

Detectives have indicated that the woman would remain in custody, the
newspaper reported. - Sapa


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Bleakness Reigns in Zimbabwe

The Guardian

Monday December 24, 2007 3:31 PM

By ANGUS SHAW

Associated Press Writer

HARARE, Zimbabwe (AP) - Thousands of Zimbabweans waited for hours to get
scarce currency from the banks so they could buy food and board buses on
Monday for Christmas trips to their home villages.

``We call this the festive season but where is there any joy?'' said
housewife and mother Mildred Chikutu, who got into a line before dawn to
withdraw the maximum allowed in a day, 50 million Zimbabwe dollars - 25 U.S.
dollars at the dominant black market rate - enough to buy a hamburger.

``You queue for money, and that's only the beginning of the queuing,'' she
said, heading into a nearby supermarket where many shelves were bare of
basic goods. A line had formed at the bakery counter.

Inflation- the world's highest - was about 8,000 percent officially in
September, but independent estimates put it nearer 100,000 percent.

With cash itself in short supply, the central bank has supplied new high
denomination notes, the largest worth 750,000 Zimbabwe dollars - about 37
U.S. cents at the black market rate. Banks still could not cope with the
demand for cash after six weeks of acute shortages, and stayed open
throughout Sunday to deal with withdrawal requests.

Power cuts, a continuing problem in Zimbabwe, added to the holiday misery.

Several suburbs in Harare, the capital, entered a 17th day without power,
and large areas of the downtown business district, including the state power
utility's headquarters, suffered intermittent outages. Officials at the main
blood bank said some stocks were thrown away after a refrigeration generator
broke down.

Even President Robert Mugabe's official residence went without power from
the city power grid for more than a week before it was restored. But he also
has a private mansion on the outskirts of the capital.

The internationally known Harare Club canceled its Christmas lunch during a
six-day power outage.

Cars snaked around a gas station a block away awaiting a fuel delivery.

Dampened by overnight rains at the main Mbare long-distance bus terminal in
the capital, thousands waited for buses to their villages. But the lines
were smaller than in the past, as fares soared and acute shortages of food
and gasoline continued.

Townspeople take chicken, sugar and other scarce commodities to rural
relatives for the holidays.

Power and water outages occur daily across the country, blamed on shortages
of spare parts, equipment and hard currency for electricity imports.

Zimbabwe was the breadbasket of the region and one of the world's top
exporters of tobacco until the government seized white farmlands that were
given mainly to cronies of Mugabe and his entourage, creating food shortages
and a crisis that led a third of the population to flee the country.


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No tills ringing for Zim this Christmas

IOL

     December 24 2007 at 01:54PM

Harare/Johannesburg - For many in inflation-riddled Zimbabwe this
year, Christmas isn't quite what it used to be.

In a glitzy department store on Harare's main First Street, there are
no customers at the almost bare perfume counters. Upstairs in the toy
department, Santa has disappeared from his grotto.

Outside, around 500 weary customers queue for cash at a bank. Cash
shortages have increased the misery for millions already worn down by months
of food shortages, power outages and water cuts.

Central Bank Chief Gideon Gono last week blamed cash hoarders for the
shortages and said he was scrapping a high-denomination bank note in a bid
to outwit those he called "cash barons".

Not everyone is convinced.

"It's a decoy," says an angry man waiting outside a bank in the
central Avondale suburb. Next to him, people crouch on the kerbs, read the
newspaper in the sun, anything to pass the time.

"There's no cash coming into the banks," he adds. "You can't get
anything out."

Few have managed to get their hands on the new set of three banknotes
introduced by Gono on Thursday, worth 250 000, 500 000 and 750 000 Zimbabwe
dollars.

Official media reported on Monday that the central bank had pumped in
20 trillion dollars-worth of the new notes - but not one of them is enough
to buy a loaf of bread.

The opposition Movement for Democratic Change (MDC) this weekend
labelled Gono "the biggest economic saboteur of Zimbabwe's economy" and
accused him of playing politics with a serious national crisis.

"Central bank takes the festive spirit out of Christmas," the
privately-owned Standard newspaper said in an editorial. "For the first time
in the history of this country, the tills will not be ringing this
Christmas," it added.

For the privileged few, there are still Christmas luxuries.

Next to a queue of people patiently waiting to buy a loaf of "cheap"
bread - at 600,000 Zimbabwe dollars - a couple of well- dressed women browse
in an exclusive clothes store.

The cost of a skirt: 360-million Zimbabwe dollars, worth $12 000 at
the official rate of exchange (120 dollars at the parallel rate) and around
the equivalent of two years' salary for a teacher.

2007 has been a bad year for many in Zimbabwe.

Annual inflation has raced to more than 14 000 percent and a
state-ordered price slash in July and August emptied stores and exacerbated
already biting shortages.

Milk, cooking oil, butter and meats are still not readily available in
many stores as shopkeepers fear the wrath of price inspectors.

In a letter published in the private press on Sunday, one writer made
a list of Christmas requests to President Robert Mugabe, in power in
Zimbabwe since 1980 and blamed - by the opposition at least - for the
country's disastrous economic downturn.

"I wish you and the First Lady... a soul-searching season of
repentance as we suffer in peril because of your ill-conceived policies,"
the letter read. - Sapa-DPA


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Corruption 'Destroyed' the Country



Institute for War & Peace Reporting (London)

24 December 2007
Posted to the web 24 December 2007

Meshack Ndodana
Harare

Corruption has now been officially acknowledged as one of the greatest
cancers abetting Zimbabwe's sharp economic decline.

At the ruling ZANU-PF party's Extraordinary Congress last week, Reserve Bank
Governor Gideon Gono named it as one of several factors responsible for the
nation's economic woes.

Analysts say, however, that in spite of this official recognition of the
problem, the government is not expected to try to stem the scourge of
corruption as so many officials are themselves involved.

At the congress, which ran from December 11 to 14, Gono said there were
"cash barons" in the ruling party and government who were keeping huge
quantities of money for speculative purposes and trade in the illegal
foreign currency market.

Zimbabwe has been in the grip of a serious currency shortage which has seen
people spending days queuing outside banking halls to withdraw their
salaries. This has badly affected production as man hours are wasted while
people move from bank to bank in search of cash.

The official exchange rate is 285,000 Zimbabwe dollars to one US dollar. On
the parallel market, one US dollar fetches 1.6 million ZWD.

Opposition parties and business have in the past accused the central bank of
stoking the country's inflation of over 8,000 per cent by printing paper
money and introducing other quasi-fiscal activities into the economy.

This week, the central bank was expected to introduce new currency to ease
the cash shortage.

Gono revealed at the ZANU-PF congress that while the central bank had
injected 67 trillion ZWD into the market, only 2 trillion ZWD could be
accounted for by the close of business last week.

"Our question is: who has all the other money? That is also the reason the
central bank has taken its time to respond to the cash crisis," said Gono.
"We cannot keep on printing money before we account for the other 65
trillion ZWD.

"Corruption, corruption, corruption has destroyed this country," Gono told
last week's congress, which was also addressed by President Robert Mugabe
among other senior government officials.

Analysts said the official would not have made such a bold claim without the
knowledge and tacit approval of the president.

However, his claim is contrary to the official party line, which blames most
of the nation's economic woes on western sanctions imposed on Mugabe and his
top officials, and on this year's drought.

Gono's claim was along the same line as that taken by the country's
corruption watchdog, Transparency International Zimbabwe - which has also
blamed the nation's problems on misconduct, as well as Mugabe's intricate
patronage system.

Last year, Industry and International Trade Minister Obert Mpofu told a
parliamentary committee that senior government and party officials were
deeply involved in the wholesale looting of resources at the Zimbabwe Iron
and Steel Company.

While he later retracted the claim, some thought that this was done under
pressure.

Mpofu was charged with perjury for lying to parliament - a charge likely to
fall away after parliament is dissolved to make way for the harmonised
presidential, parliamentary and local government elections scheduled for
March.

A number of party and government officials have been implicated in the
smuggling of precious minerals since the discovery last year of diamonds in
the Chiadzwa district of Manicaland Province.

While Mugabe had warned that corruption would not be tolerated, neither he
nor anyone else has dared name names.

Last week, Gono said an average of 15 tonnes of gold worth 400 million
dollars was smuggled out of Zimbabwe every year.

"Diamonds worth over 800 million dollars have been smuggled out of the
country," he said. "Other minerals have either been smuggled or
under-invoiced to the tune of about 200 million dollars per year.

"In total, therefore this economy is losing on average not less than 1,7
billion dollars per year through economic sabotage perpetrated by a few of
us with the knowledge and/or complicity of many seated in this hall," he
said to deafening applause from the public gallery.

"We are now aware of the massive syndicates of cash barons who are hoarding
cash and consequently creating shortages."

However, Gono immediately beat a retreat.

"I will not disclose what we are going to do and we want to see the congress
express itself on what is causing the shortages," he warned darkly.

His challenge was immediately taken up by Mashonaland East provincial
chairman Ray Kaukonde, who called on Gono to produce this list of cash
barons.

Kaukonde then asked the question on everybody's lips, "On behalf of
provinces, I would want to ask what it is that is causing these people not
to be arrested?"

Gono said by speaking his mind, he was making many enemies for himself. "I
will be the focal point of attack and worse smear campaigns than ever
before," he said.

A senior official with Transparency International said he was sceptical that
any action would be taken by the authorities.

"Gono is saying all the right things. Unfortunately, corruption thrives in
ZANU-PF and government itself," he said.

A political analyst at the University of Zimbabwe said that nothing would
come of Gono's self-righteous protests and that ZANU-PF was well known for
protecting its own.

"We have become hostage to the culture of secrecy," said the analyst.
"Nobody wants to name and shame because none of them is clean. Not even the
president seems to have the courage to name corrupt officials in his
administration.

"The same people accused of hoarding cash have been implicated in
black-market foreign currency deals, the illegal sale of state-subsidised
fuel, fertiliser, maize seed and other farm inputs.

"It is the same people implicated in the smuggling of precious minerals.
Once in while there are token arrests but the real culprits are beyond the
reach of the law.

"Corruption has become a cancer in Zimbabwean society, and unfortunately the
pain is felt mostly by you and me - the poor."

Meshack Ndodana is the pseudonym of an IWPR journalist in Zimbabwe.


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Zimbabweans have little to celebrate

Financial Times

By Tony Hawkins in Harare

Published: December 24 2007 02:21 | Last updated: December 24 2007 02:21

For some 10m Zimbabweans, Christmas 2007 will be the worst in memory. As if
coping with inflation, ­estimated at more than 40,000 per cent, and
shortages of food, fuel, electricity and water were not enough, they cannot
draw their money from bank accounts because of a cash shortage engineered by
the authorities.

For the past fortnight people have had to queue for hours – even days – at
teller machines and banks to try to draw out their cash, amid repeated
promises from Gideon Gono, central bank governor, the crisis would be
resolved by Christmas.

On Wednesday, Mr Gono announced the issue of three new large-denomination
notes, the largest of Z$750,000 ($25 at the official exchange rate or $1.50
at the more realistic parallel rate).
At the same time, he withdrew the previous largest note (Z$200,000) as he
believed that 97 per cent of the Z$67,000bn note issue ($13.3m at the
parallel rate) was being held by speculators, hoarders, unscrupulous
business people and “cash barons”.

Businessmen say that because they cannot withdraw cash from the banks, they
must buy it in the parallel market at a premium of 30 per cent and more, to
pay suppliers and workers.

The cash change operation is typically chaotic. The new notes were not
available until late Thursday or Friday. The old $200,000 notes are
cancelled from January 1, so holders are rushing to spend or deposit the
cash while Mr Gono is deploying an army of central bank officials and tax
collectors to catch cash criminals.

Until last week the maximum cash withdrawal allowed was Z$20m for
individuals or Z$40m for businesses.

Companies could draw more if they had written approval from the Reserve Bank
of Zimbabwe, but this concession has been withdrawn and employers told to
advise workers to use bank accounts and use debit cards or cheques, not
cash.

Even if the banks were willing to open such accounts – and they are not –
this could not be done in time for employees to spend their December pay
packets and year-end bonuses.

Business is gridlocked. Shortages of fuel, electricity cuts, water supply
breakdowns, telephone faults and overloaded money transfer systems are
making it increasingly difficult to undertake even the simplest
transactions.

Supermarket shelves are marginally better stocked than two months ago, but
at Arundel Spar in Harare’s northern suburbs, some 80 per cent of the goods
are imported. Freezers are full of frozen fish and vegetables from South
Africa, while the shelves are groaning with breakfast cereals, biscuits,
chocolate, canned beer and wine – all South African.

Zimbabwe-made products are scarce, partly because manufacturers, forced to
produce and sell at artificially low prices imposed by the government, have
trimmed operations, but also because of smuggling.

Angela, a hairdresser, says she travelled 200 miles by bus from Harare to
Mozambique to shop. Most of what she bought – mealie meal, soap, sugar,
fruit juice, candles, margarine and cooking oil – had been made in Zimbabwe
and smuggled across the border for re-sale at much higher prices.

Most, if not all, of these problems can be laid at the door of President
Robert Mugabe’s government. Yet the government has a Teflon-like ability to
escape condemnation.

Queues for cash, fuel or bread are remarkably good humoured.

No one can say how long this can go on. Some economists and political
analysts say there must be a breaking point, but ask anyone who will win
elections in March, and the answer is Robert Mugabe.


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Zim travellers battle to board buses - report

IOL

     December 24 2007 at 09:53AM

Hundreds of travellers were battling to board buses at Mbare Musika in
Harare to reach their rural homes, Zimbabwe's Herald online reported on
Monday.

Bus crews attributed the transport problems to fuel shortages.

"We either load the buses first and spend hours queueing for fuel or
we first queue for fuel and later load the buses and at the end of the day,
we don't carry out our normal business, resulting in most travellers having
to sleep at the market," Manuel Tsandukwa, a driver with Manica Bus Services
told the Herald.

Bus crews said only a few people had managed to board buses to their
rural homes over the past three days.

But there was a surge in the number of prospective travellers at Mbare
Musika on Sunday after more people managed to withdraw cash from banks,
Stanley Hodzi, a driver with Charehwa Bus Services, told the Herald.

The worst affected routes were Murehwa, Nyamapanda, Chiweshe, Mutoko
and Masvingo.

Some bus operators were also taking advantage of the situation to
unilaterally hike bus fares. -
Sapa


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Militarisation of Zimbabwe: Does the opposition stand a chance?

zimbabwejournalists.com

24th Dec 2007 01:40 GMT

By Freeman Forward Chari

WHEN Major General Vitalis Zvinavashe and Air Marshall Perence Shiri
announced in March 2002 that;

"… let it be known that the highest office in the land is a straitjacket
whose occupant is expected to observe the objectives of the liberation
struggle. We will, therefore, not accept, let alone support or salute,
anyone with a different agenda that threatens the very existence of our
sovereignty, our country and our people."

It became clear that the military had diverted from its constitutional
mandate into civilian politics. As we brace for another presidential
election there are many questions we ask ourselves; is the 2002 threat not
going to be sent out again? If it does what would be the consequences? How
far anyway is the army involved in civilian politics? It is the objective of
this article to explore the levels of militarization in Zimbabwe and
probably give a prognosis of the future political climate.

In 1980, when Zimbabwe got its independence from Britain there were more
than 65 000 fighters from ZANLA, ZIPRA and RSF who were waiting to be
integrated into the Zimbabwe National Army whose capacity then was a mere 30
000. What it meant then was that there arose the need to demobilize and
rehabilitate the other 35 000 soldiers. The first program Soldiers Employed
in Economic Development (SEED) was a total failure. Later the John Shonhiwa
led Demobilisation Directorate decided to award a package of $185 per month
for two years to each demobilized soldier. A combination of factors like
lack of financial discipline and proper investment training resulted in most
beneficiaries reverting back to poverty within five years. Thus although the
government had managed to integrate the 35 000 into civilian life most had
to rely again on the same government for survival. The problem of poor
demobilization program culminated in the War Victims Fund, the 1997
Gratuities and the 2000 farm invasion. Ultimately though, this program
produced a crop of perpetual government dependencies who the government also
symbiotically used and continues to use to sustain its cling to power.

At the height of the ZIPRA/ZANLA clashes between 1980 and 1987, ZANU PF
created the Zimbabwe People's Militia which was typically a vigilante. It
comprised of mujibhas and zvimbidos of the liberation struggle and the ZANU
PF Youth Brigade. This branch was under the command of the Deputy Minister
of Defence and at one point was trained by the notorious North Koreans
infamous for the ruthless Fifth Brigade. It does not come as a surprise that
ZPM has been implicated in the Matebeleland massacres of that time. The
total number trained was estimated to be 20 000.

The government reintroduced the National Youth Service in the new
millennium. The purpose of the training although the government claims is
noble was specifically to consolidate power. The curriculum of the program
involves basic military drills and at most the more advanced military
ideology similar to that propagated during the liberation war. In 2005
Deputy Minister of Youth Development and Employment Creation   Saviour
Kasukuwere announced that 18 000 youths had graduated and absorbed by the
government. Coupled to the ministerial objective of producing 6 000
graduates per year it extrapolates to about 30 000 graduates to date.

The Zimbabwe National Army and the Zimbabwe Republic Police have in total
recorded a voluntary retirement of about 15 000 members since 1997.

What then do these figures mean to Zimbabwe? If you add up 35 000 war
veterans, 20 000 ZPM, 30 000 from National Youth Service and 15 000 retirees
we have a total of 100 000 civilians who have at least basic military
education and training. This number, add 35 000 from ZNA, 5000 from Air
Force of Zimbabwe, 25 000 from ZRP, 10 000 from Prisons and about 15 000
from CIO it means we have at least 190 000 people in Zimbabwe who have a
basic understanding of military language!

At the level of leadership and policy-formulation there is need to also
explore the level of involvement of the military in strategic entities that
strictly deal with civilians. We have many cases, below are just some
notable examples.

The Minister of Energy and Power Development is Rt Lieutenant General Mike
Nyambuya. Rt Brigadier-General Ambrose Mutinhiri is the Minister of Youth
Development and Employment Creation. Ministry of Transport has Rt Colonel
Hubert Nyanhongo as Deputy Minister, whilst National Railways of Zimbabwe
has Brigadier Douglas Nyikayaramba and Air Commodore Mike Karakadzai as
Board Chairman and CEO respectively. At Grain Marketing Board there is Rt
Colonel Samuel Muvuti as CEO. Permanent Secretary for Industry and
International Trade is Rt Colonel Christian Katsande. Justice Chiweshe who
leads the Zimbabwe Election Commission (ZEC) is a former Advocate-General in
Zimbabwe National Army. The Attorney General Sobuza Gula-Ndebele is a
Retired Colonel. Brigadier General Gibson Mashingaidze and Rt Lt Colonel
Charles Nhemachena are both with the Sports and Recreation Commission.

What do these appointments mean to Zimbabwe?

Food (GMB)-   ZANU PF controls

Transport -     ZANU PF controls

Energy, fuel, Power- ZANU PF controls

Industry, Trade- ZANU PF controls

Sport   -     ZANU PF controls

Youth  -     ZANU PF controls

Attorney General- ZANU PF controls

Elections -     ZANU PF controls

In the Joint Operations Command , there are Ministries of Defence, Finance,
State Security, Home Affairs and Foreign Affairs. The military therefore
controls the finances in one way or the other. Even the foreign policy is
dictated by the military and not parliament, that's why there are a number
of military men on diplomatic missions- Rt Major General Jevan Maseko in
Cuba and Rt Brigadier Elsha Muzonzini in Kenya to name a few.

The question we pose to ourselves then is: in a country of nearly 200 000
military people, in a country whose public sector is run by the military,
where does the common man fit? Is there a possibility of civil participation
in the country?

This predicament  compels one to pose and think of the state of the
opposition in Zimbabwe. Where exactly on this well-oiled military setup can
an opposition party hope to paralyse the system. Are democratic options in
Zimbabwe feasible?

Can the civilians of this country go and impose their right to vote on an
institution controlled by the military, funded by the military, run by the
military, with the military fielding a military man (Commander-in-Chief) in
the elections?

The picture does not look good yet I am compelled to commend MDC for
struggling against the military with bare hands, NCA for provoking and
outrunning the lion every day, Zimbabwe Lawyers for Human Rights for trying
to prove how wrong the judge was for killing a man and prosecuting himself
before acquitting himself, ZINASU for scaring the lion with the cover of a
book and the whole of the civil society for standing up to the military
junta. It is time to bury the hatchet and be one!

The Struggle Continues

Freeman Forward Chari

Secretary General

Zimbabwe Youth Movement


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In a world of logic, ZANU PF would lose

zimbabwejournalists.com

24th Dec 2007 00:58 GMT

By Chenjerai Chitsaru

NOT many pundits would be alarmed if the Republicans lost next year’s
elections in the United States.

The Iraq war alone would consign them to an ignominious rout by the
Democrats.

In Kenya , it would be nothing short of a miracle if Mwai Kibaki’s party was
handed a second successive term in office.

Corruption in high places would probably account for most of the negative
votes.

In Zimbabwe, where elections are due next March, corruption would be only
one of many mortal blows the voters would deliver to the heart of the
politically debilitated Zanu PF.

The monumental mismanagement of the economy, triggering the present
unprecedented nationwide shortage of cash, would be the prime mover of an
anti-Mugabe, anti-Zanu PF vote.

In a world of political logic, this would be a foregone conclusion.

But in Zimbabwe, political logic has, in the recent past, been stood on its
head, or has been so violated that all options or bets must be ruled off.

President Robert Mugabe’s record, in the twenty-seventh year of his reign,
is so atrocious only the brain-dead members of his party would vote for him
or his party.

Correction: people who have reaped rich rewards from his rule would also be
inclined to stick with him for the obvious reason that their cash cow would
be in terminal mould if he lost.

A cursory look at the catalogue of  political and economic disasters
authored by this government would convince a visitor from Mars that anyone
even contemplating to vote for it would have to be due for a thorough brain
scan – to confirm that they still had a brain functioning properly in their
head.

On the first day of this week, a Sunday, the banks were opened for the first
time in many years, on the orders of the governor of the Reserve Bank, the
beleaguered Gideon Gono.

A casual tour of the central business district of Harare established fairly
solid evidence that thousands of people still needed to withdraw their
cash – obviously for the forthcoming Christmas holiday.

There were scenes of near-panic or near-riot at some of the banks, with
impatience among depositors running dangerously high.

The cash shortage has persisted for nearly six weeks, with Gono blaming it
all on so-called “cash barons”. Today, the government’s Sunday Mail
newspaper headlined the “nabbing” of one of these alleged saboteurs, a woman
aged 24.

To many cynics, it all sounded a little too convenient. No-one was prepared
to accuse some people in government of  “arranging” the woman’s arrest.
The bigger picture for many citizens was how utterly inconsiderate the
government and the RBZ governor were proving to be in not solving the cash
shortage as quickly as depositors wished them to.

For many people, including captains of commerce and industry, attention
shifted quickly to the person of Gideon Gono and his credentials as the one
man entrusted by Mugabe to supervise the so-called economic turnaround.

Gono’s predecessor was a man so unassuming most ordinary people could not
name him without consulting a newspaper or asking someone in the banking
business.

Leonard Tsumba incurred Mugabe’s wrath by supporting his then Minister of
Finance, Simba Makoni, in calling for the devaluation of the anaemic
Zimdollar.

Makoni’s political star has since soared, perhaps much against his own will.
He is now constsntly being mentioned as a possible successor to Mugabe,
either in Zanu PF or in a coalition including the opposition Movement for
Democratic Change (MDC).

What must be  even more disturbing for Zanu PF is that Makoni is favoured by
big business because his platform would include a solid drive to promote
free enterprise.

Not many neutral observers of the Zimbabwe imbroglio are inclined to give
Gono many more years as the head of the central Bank.

The cash crisis, for many people, was the last straw that broke the camel’s
back.

Standing impatiently in the long queues, many depositors fumed at the
impunity with which they perceived Gono as treating them. Women with babies
strapped on their backs, most of them crying and hungry, wondered aloud how
the government could subject them to such mental and physical torture.

Gono’s tenure as the head of the central bank has been marked by a few
flip-flops. At the beginning, he clearly favoured a “return to the basics”,
a re-engagement with the International Monetary Fund (for balance of
payments assistance) and the World Bank for aid.

It was some time before he probably realized how steadfast Mugabe was in his
determination to outstare the two Bretton Woods organizations. Neither he
nor the IMF and the WB blinked in this eyeball-to-eyeball confrontation.

The result is what Zimbabwe is confronting today, an economy starved of
foreign currency and burdened with a staggering foreign debt. Trade with the
developed world is minimal and the Look East policy, largely anchored on
trade and aid with the People’s Republic of China is not as spectacularly
successful as it was hoped to be.

Gono has publicly disagreed with some of the government’s measures to halt
the preposterously high inflation rate.

The price blitz, for instance, was mounted in spite of his own open
criticism of it. Many of his supporters hoped at the time that he would at
last see the futility of belonging to a political campaign to handle an
essentially economic problem.

The fallout from that exercise is still evident to this day: one department
store has the following sign on its windows: This shop has now closed
permanently.

Many others do not see the need for this politeness: they have just shut up
shop and hope their customers will know soon enough that they have no
intention of reopening in the foreseeable future.

Unemployment is officially pegged at 80 percent, but clearly it is rising by
the day as more and more businesses shut down.

Why any voters would rush to the polls to cast their ballot for Mugabe and
Zanu PF would, at a glance, be something of a mystery.

Zanu PF has given people fertilizer, seed and farm implements: there is a
vague suggestion that, at some point in the future, they may have to pay for
it all. But for the moment, both sides seem satisfied that this is “gift”.

The opposition has  cried “foul”, as they allege this is blatant vote-buying
by the ruling party.

Apparently in response to the opposition allegations, Mugabe himself has
warned against vote-buying – among his own members as the election draw
nearer.

In the past, Zanu PF has not hesitated to use the funds at its disposal as
the governing party to persuade voters in so-called “marginal”
constituencies to vote for its candidates.

But the opposition is under no illusions about the presence of a level
playing field for the elections. Amendments to the laws relating to the
media, security and freedom of assembly and association may have been hailed
as signaling Zanu PF’s readiness to fight a free and fair election.

All this may indeed have the appearance of a totalitarian party undergoing a
sea-change, but the cynics are not fooled. Zanu PF has not lost an important
election since 1980.

Its only major defeat since independence was the constitutional referendum
which followed the 2000 parliamentary election, in which it lost 57 seats to
the MDC.

In 2002, Zanu PF introduced the Public Order and Security Act (Posa) and the
Access to Information and Protection of Privacy Act (AIPPA) – in direct
response so the two successes by the opposition.

For Zanu PF, logic can be tampered with or just be ignored.


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Migrants head home for Xmas

From The Star (SA), 24 December

Bonile Ngqiyaza

The rush home out of Joburg for migrants was in full swing yesterday
morning. When a team from The Star visited the back of the Tudor Hotel in
Braamfontein around 7.30am, a yellow bus with grey and light blue stripes
was parked at the corner of Leyds and Loveday streets, gobbling up the last
migrant commuters - also known unkindly as amagoduka in some quarters -
before their departure. The impatient bus driver had parked the vehicle (a
GM Phadziri and Sons bus to Venda) awkwardly at the intersection, and it was
obstructing traffic. The small stretch of road in front of the gate leading
to Joburg's Park station was abuzz with people standing next to big bundles
of luggage, and others hastening off somewhere to get their business done.
Mashudu Mukhakhisi, a security guard for Sinqobile Equestrian Security
Services, has seen this all in the two years that he has worked at
Munomurama International, the transport service company that owns buses that
ferry people to Malawi and Zimbabwe, and which park at the back of the Tudor
Hotel. "If you come here tomorrow (Monday), or maybe even later today, you
will see the (Tudor) hotel covered with people," Mukhakhisi said. A huffed
migrant worker from Bulawayo, Zimbabwe, complained to a journalist that he
had bought a camera off the street, only for him to discover later that it
wasn't the genuine article. Mackson Chinodya from Gweru, also in Zimbabwe,
who works as a waiter in Rosebank, said he was looking forward to seeing his
relatives, who he hasn't seen for close to three months. "It has been very
difficult for me to go back, but I have managed to work hard enough without
taking any time off so that I could have time off now." As he was speaking,
dismantled bicycles, as well as other goods in black refuse bags, were being
heaped up in the middle of the yard for transportation to Zimbabwe and
Malawi.


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Christmas queue blues in Zimbabwe

Business Day

Karima Brown

IN AN unusual move, banks in Zimbabwe will be open tomorrow, Christmas Day,
to deal with the country’s crippling cash-flow problems.

Zimbabweans endured long queues yesterday as banks worked overtime to
replace temporary currency before it becomes worthless when the year ends on
Tuesday next week.

Bearer cheques, essentially money printed on ordinary paper, were launched
in 2003 as a temporary measure to ease a currency shortage caused by
rocketing inflation. The temporary currency expires on December 31.

In an extraordinary move, commercial banks stayed open at the weekend to
cope with customer demand, made worse by the fact that Z$200000 (about $8)
bank notes would also become worthless on December 31.

These notes were being replaced by Z$250000, Z$500000 and Z$750000 notes, in
a move announced last week by Zimbabwe’s central bank in its latest effort
to tackle the country’s cash shortages.

A set of three new banknotes was unveiled by the central bank’s chief on
Wednesday, and were trickling into the market.

Not one of the new notes is enough to buy a loaf of bread.

Zimbabwe Central bank governor Gideon Gono admitted in the state-run Sunday
Mail newspaper that it would not be possible for everyone to get their money
in time.

“It is against this reality that we have said banks would be open, not only
on Sunday and Monday, but also on Tuesday and Wednesday — that is on
Christmas and Boxing Day,” he told the newspaper.

Irate bank customer Enoch Dube said that despite waiting in line for hours
he had so far failed to access his money.

“Yesterday (Saturday) I was number 500 on the line, and I got nothing,” he
said.

“Today (Sunday), I am again in the line, and I do not know if I will get
anything despite (the fact) that I was here” since the early hours of the
morning.

Zimbabwe is in its eighth year of recession, with record high inflation and
unemployment.

At least 80% of the country’s population lives below the poverty threshold.

Against a background of political oppression, which has seen President
Robert Mugabe chosen once again as the ruling Zanu (PF)’s only presidential
candidate in coming elections, spiralling inflation has rendered Zimbabwe’s
currency worthless, causing hardship for Zimbabweans who now face one of
their bleakest festive seasons yet.

The latest cash crunch comes amid Gono’s dismay at a parliamentary committee’s
apparent reluctance to let him name top government officials who are
hoarding cash. With Sapa-AFP


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Africa 2007 - Year in cartoons

Cartoon

In August, President Robert Mugabe's neighbours declined to criticise Zimbabwe's human rights record.

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