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Mugabe moves to seize British diamond field

The Telegraph

By Peta Thornycroft in Marange
Last Updated: 2:10am GMT 08/12/2006

      A British-listed mining company, the first to invest in bankrupt
Zimbabwe since the political crisis began, was ordered off its valuable
diamond claim yesterday.

      While President Robert Mugabe has seized thousands of white-owned
farms since 2000 he has, up until now, left mining property alone.

      The claim, an extraordinary chunk of ancient tribal land in south
eastern Zimbabwe, may be one of the richest diamond fields found in recent
years.

      And the Zimbabwe government wants it.

      African Consolidated Resources plc, with about 1,000 claims in
Zimbabwe, listed in London in June and says it was granted title by the
Ministry of Mines.

      The order to leave the dry, poverty-stricken Marange district, about
200 miles south east of Harare, comes after months of drama.

      When rumours of diamonds spread during the summer, thousands flocked
there from all over Zimbabwe and neighbouring countries in what may have
been the largest diamond rush in Africa in the last 100 years.

      Company officials estimate £120 million of diamonds were dug out by
desperate people over the last few months. Dirk Benade, 57, an ACR
geologist, saw it all. As the hordes massed, they dug deep holes within a
metre of one another.

      There were no toilet facilities, people were buying water with
diamonds and sleeping in the holes which they also used as latrines. The air
was thick with flies.

      "Between 6,000 and 15,000 people moved one million tonnes of earth by
hand in a 1.4 sq mile area in a month. World class machinery couldn't have
moved what they did," said Mr Benade.

      "One man was murdered for diamonds in the hills behind us. And a woman
died after a huge Baobab tree fell on her after soil around its roots had
been dug away," Sabo Sauke, 31, told The Daily Telegraph, the first Western
newspaper to reach the area since the rush began.

      Mr Sauke, like all the diggers, was pressed to sell his stones to the
state's Minerals Marketing Corporation of Zimbabwe at a fraction of their
real value.

      As the hygiene conditions continued to deteriorate, Tinos Rusere, the
deputy mining minister, went to the site on September 25 and told swarms of
diggers to carry on mining and sell their stones to the government.

      Dealers from neighbouring South African also appeared, offering better
prices.

      ACR has built roads and refurbished dams for the local community and,
when the diggers were finally moved out of the area by police last week, the
company began sifting gravel to estimate how much had been looted.

      But yesterday came the eviction order which the company is challenging
in court. Andrew Cranswick, 44, ACR's chief executive, said: "I don't
believe Zimbabwe would allow illegal seizure of claims without due process."


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Gono flees Russia over aircraft deal

Zim Independent

Dumisani Muleya/ Shakeman Mugari

ZIMBABWE'S plans to purchase passenger aircraft from Russia have
collapsed amid bribery allegations involving US$25 million.

Reliable aviation sources said this week that Transport minister
Chris Mushohwe and Reserve Bank governor Gideon Gono recently left Russia in
a huff after a dispute erupted during negotiations.

They feared a Russian Mafia-style backlash after the deal fell
through as a result of disagreements over a US$25 million "commission" that
was supposed to be paid in advance, over and above the agreed price for the
controversial planes.

Zimbabwe wanted to buy at least five llyushin and Tupolev
aircraft from Russian's Voronezh Aircraft Construction Company (Vaco).
Zimbabwe was to get five Ilyushin 1l-96s consisting of three 400T and two
400M passenger aircraft.

The planes have been nicknamed "flying coffins" because of their
technical faults and frequency of horrific crashes. Engineers at Air
Zimbabwe, which is trying to buy planes to beef up its depleted fleet, have
raised serious concerns over the quality of the planes although Russian
diplomats in Harare have downplayed the concerns. Air Zimbabwe recently
acquired three MA60s from China.

Sources said Gono had to virtually flee Russia in fear of his
life after the protracted negotiations stalled and the deal turned sour.

The problem, sources said, started after the Russians demanded
that Zimbabwe must pay in advance a "commission" of US$25 million which was
to be shared equally among political and business "chefs" in Moscow and
Harare to facilitate the deal.

Questions have been raised in government circles about how they
were supposed to be the beneficiaries of this "commission".

The "commission" has been interpreted by aviation observers as a
kickback.

An aviation expert said there were unscrupulous dealers in the
industry who behave like arms dealers.

Mushohwe went to Russia recently as the responsible minister to
conclude the talks over the planes. When he arrived the Russians told him
Zimbabwe had to pay a US$25 million "commission" before the deal could be
concluded.

While Mushohwe was still negotiating with the Russians,
President Robert Mugabe dispatched Gono to carry out a due diligence on the
deal and tie up the loose ends. The central bank was going to help with
foreign currency to pay for the planes.

Sources said when Gono arrived in Moscow he was told a US$25
million "commission" had to be paid before the deal could be signed.

He was also told, according to sources, that half of the money -
US$12,5million - would go to senior officials in Russia and the other to
Zimbabwean big shots.

The sources said while Mushohwe was still looking into the
issue, Gono told the Russians that Zimbabwe was not able to raise that kind
of money because of foreign currency shortages and a general fiscal crisis.

The Russians however insisted that it was the norm in the
aviation industry for a "commission" to be paid to senior politicians when
such deals were negotiated.

"When Gono tried to protest, the Russians were not amused and
told him he was becoming a problem," a source close to the issue said. "It
then became clear that Zimbabwe must withdraw from the deal but the Russians
did not take it lightly."

The Russians insisted that money had to be paid and warned they
were not interested in negotiating such a deal with "inexperienced"
officials who did not know the unwritten rules in aviation deals.

Gono pretended to give in under pressure and said the issue
would be looked into and said he still needed to consult  his principals.
After getting off the hook through delaying tactics, Gono, fearing for his
life, scurried out of his hotel and went to another near the airport, before
leaving the country in a hurry.

"Having bought some time in the deal, Gono booked out of his
initial hotel and went to check into another one by the airport to ensure
his safety before practically fleeing Russia," a source said.

"Mushohwe also left Russia in a hurry after he failed to deliver
on his side of the bargain and had also developed a misunderstanding with
Gono over the deal," the source said.

Sources said Gono's security fears were worsened by the recent
murder of his friend, deputy chairman of Russia's central bank, Andrei
Kozlov, who was shot dead while coming from a football match in Moscow. The
sources said Gono and Mushohwe had to literally flee Moscow fearing
reprisals from the Russians. Neither Gono nor Mushohwe could be reached for
comment last night. Mushohwe hung up the phone as soon as he heard that it
was the Zimbabwe Independent calling. Gono was still locked in meetings.

Sources said in the end Mushohwe and Gono were at loggerheads
after negotiations faltered because the minister thought the Reserve Bank
chief had thrown a spanner into the works. Mushohwe, sources said, was angry
because Gono had come to Russia trying to dictate how the deal should be
done when he had already made progress in his talks with the Russians.

It is also said Vice-President Joice Mujuru, who was acting
president when Mugabe was in China, was also unamused by Gono's role because
it had led to the collapse of negotiations.

Sources said the clashes which occurred between Mujuru's allies
in the National Economic Development Priority Programme and Gono during a
recent National Economic Recovery Council meeting were linked to events in
Russia.

It is also said the political fight over the importation of
inferior fertiliser from South Africa was part of a chain of events which
have been playing out in the corridors of power.


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Zanu PF wants Mugabe for life

Zim Independent

Ray Matikinye

ZIMBABWEANS could be saddled with President Robert Mugabe's
despotic rule for longer than feared if recent statements by his inner
circle are anything to go by.

While his ruling Zanu PF party is being whipped into line at its
forthcoming "national people's conference" to extend his term of office to
2010 on the pretext of "harmonising" presidential and parliamentary
elections, his closest associates have been quoted as supporting a move to
make him president-for-life.

A South Africa-based news website this week reported Lands and
Security minister Didymus Mutasa as endorsing an indeterminate extension of
Mugabe's term.

"When people talk about harmonising the elections and holding
them jointly in 2010, they think we are using this to give the president a
ticket to hold office till 2010," he was reported as saying. "No. It could
as well be that we might actually want him there for much longer."

Contacted for comment yesterday, Mutasa denied making the
statement and said it would be unlike him to anticipate conference
resolutions.

"I am the party secretary and senior enough to know not to
discuss such issues in the media. Resolutions are for party delegations at
the conference to discuss," he said.

In 1996 in a BBC interview Mutasa compared Mugabe to Britain's
monarch who was not elected.

Zanu PF information chief Nathan Shamuyarira recently suggested
his party was mulling a constitutional amendment that would harmonise
presidential and parliamentary polls, a move Justice minister Pat-rick
Chinamasa advertised as one of several possibilities in an interview with a
state newspaper last year.

The move to extend Mugabe's term could face opposition from the
political camp associated with Vice-President Joice Mujuru and that for
Rural Housing minister Emmerson Mnangagwa.

"There is a realistic chance that someone among the delegates or
one of the provinces could come up with a proposal that Zanu PF should make
him president-for-life and that he remains the party's presidential
candidate until Amen," Mutasa is quoted as saying. Mutasa said Mugabe (82)
had done "so many wonderful things" for Zimbabwe but was still not showing
any signs of tiring despite his advanced age and it was possible delegates
could decide to appoint him for life.

Resolutions emanating from Zanu PF's annual conference have in
the past been endorsed by government. For instance, the decision in December
2003 to pull out of the Commonwealth stemmed from a similar arbitrary
decision by party seniors at their annual conference in Masvingo.

Harare and Midlands are proposing different agendas concerning
the succession issue that could ignite serious intra-party fighting over
whether to hold presidential and parliamentary elections at the same time in
2008 or 2010.

Harare province secretary for publicity William Nhara yesterday
said his executive had only discussed the harmonisation of mayoral and
council elections.

"The issue of harmonising presidential and parliamentary
elections is a highly explosive political issue. Our main focus of
discussion was issues that affect Harare as an urban province," Nhara said.

Harare province would go along with others if the harmonisation
of presidential and general elections came up for discussion, he said.

"It is not a matter of competing resolutions. The conference is
meant to discuss issues that come up."

Although there appears to be general agreement on harmonisation,
it is the dates that have become contentious with the two provinces deciding
on different dates.

Zanu PF Midlands chairman Jaison Machaya said the issue must be
discussed and that the elections must be harmonised.

Nhara said discussion of harmonising elections was premature
because President Mugabe's term does not run out until March 2008. But given
recent statements from Zanu PF luminaries, the issue is rapidly moving to
centre stage. This comes as reports circulate of Joice Mujuru fading as
Mugabe's anointed successor.


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Legislators sceptical of Pricing Commission

Zim Independent

Ray Matikinye

A SPECIAL parliamentary committee has demanded guarantees that
the proposed Pricing and Incomes Commission will not turn out to be another
state body riddled with corruption.

MPs expressed fears that members of the commission would be
selected on a patronage system.

Legislators tasked to scrutinise the provisions of a Bill set
for tabling in parliament during the current session expressed cynicism
about the commission.

The Bill seeks to punish industrialists and retailers who flout
price controls with prison terms and closure of their business.

The MPs cited the Anti-Corruption Commission that has yet to
make a mark in fighting corruption since it was set up with great
expectation from the public.

Zanu PF senator for Mutate-Mutasa, Mandy Chimene, expressed
scepticism over the functions and competence of the Pricing and Incomes
Commission to deal with daily price hikes.

"Do we have competent people to run the proposed commission and
guarantees that the commissioners will not be tempted to take bribes from
well-heeled business people?" Chimene asked officials from the Industry and
International Trade ministry who gave oral evidence to the committee.

MDC legislator for Chitungwiza, Fidelis Mhashu, said the setting
up of yet another commission to control prices and incomes indicated
government's failure to run the economy.

"What is it that this commission will achieve where other bodies
before it have failed? It goes to show the government has failed to enforce
the Control of Goods Act," Mhashu said.

But the Director of Research and Consumer Affairs in the
Industry and International Trade ministry, Norman Chakanetsa said the
proposed legislation sought to strengthen monitoring and research into
prices and incomes.

He admitted that government could not provide guarantees against
possible corrupt practices saying although corruption was endemic, it was
everyone's duty to make an effort to curb it.

Reeling under an economic meltdown and runaway inflation, the
government has sought to rein in prices, accusing manufacturers of
unwarranted increases that have accentuated poverty among the poor.

The government has unleashed inspectors to enforce prices on
basic commodities.

Manufacturers have argued that the price hikes result from fuel
shortages which have forced them to source the commodity on the black market
at premium prices.

Police have over the past two months arrested more than 3 000
retailers for flouting price control regulations since they launched a blitz
to curb profiteering.

The populist Bill has been heavily criticised by commerce and
industry bodies. Both view it as yet another impediment to their operation
as government seeks to tighten tentacles on the economy.

The Zimbabwe National Chamber of Commerce fears price controls
will scare away investors. It recommended that the commission be independent
from the executive for it to be effective.

It submitted that the Bill should clarify the extent to which
producers would determine profit margins and the commission's influence on
goods and services supplied by parastatals. Price controls should take into
account the whole production process, they argue.


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Bakers seek to raise bread to $700

Zim Independent

Loughty Dube

THE National Bakers Association (NBA) has written to the
Industry and International Trade ministry seeking permission to raise the
price of bread from $295 to $700.

The bakers claim that the baking industry is facing total
collapse due to the uneconomic price they are currently forced to charge by
government on bread.

The bakers want Industry and International Trade, minister,
Obert Mpofu, to allow them to raise the price of bread so as to enable the
bakers to continue in business.

NBA national chairman, Burombo Mudumo, confirmed before his
arrest last Friday that his organisation had made representations to the
government on the matter.

Mudumo said his organisation was awaiting a response from the
ministry.

"We sent representations to the Ministry of Industry and
International Trade to seek permission to raise the price of bread to $700,"
Mudumo said.

"The reason is because the current operating environment is very
uneconomic and it makes it difficult for us as bakers to continue
operating," he said.

"As bakers we buy plastic containers for bread at more than $100
and we are expected to sell a loaf of bread for $295 and we are saying this
is uneconomic and unviable," Mudumo said.

The government has in the past reacted to bread price increases
by arresting bakers who they claim are overcharging. On November 7, the NBA
wrote to the ministry secretary, Christian Katsande, asking to raise the
price of bread to $638.

The association had written in October asking to raise the price
of bread to $467.


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Prisoners fume over toil on govt officials' farms

Zim Independent

Lucia Makamure

PRISONERS in Zimbabwean jails have complained over the Zimbabwe
Prison Services (ZPS)'s practice of using them as cheap farm labour on
government officials' farms.

Government officials who benefited from the controversial land
reform programme are taking advantage of prisoners as a source of cheap
labour without additional costs such as accommodation and food.

This has resulted in serious food shortages in prisons as in
previous years prisons used to get supplementary food from their farms that
are now derelict.

After the chaotic land reform programme, new farm owners threw
out farm workers, leaving them stranded and homeless.

Instead of hiring the former farm workers who are entitled to a
minimum wage, some of the resettled farmers prefer cheap prison labour
despite international treaties to which Zimbabwe is a signatory.

Otto Saki of the Zimbabwe Lawyers for Human Rights said it was
unfortunate that government officials are abusing their powers and using
prisoners as cheap labour.

"There are standard minimum rules for the treatment of
prisoners. They should not be treated in a vindictive manner as several are
suffering from chronic illnesses that cannot be seen by the naked eye," Saki
said.

He said prison labour was intended to rehabilitate and make
inmates better people who can be integrated back into society by exposing
them not only to agriculture but also to other industries.

"What is pathetic about this system is that these prisoners
spend hours working on government officials' farms yet their own prison
farms, which are supposed to provide them with food, are lying idle," he
said.

The International Labour Organisation (ILO) has strict standards
prohibiting such use of prison labour. Zimbabwe ratified an ILO treaty in
1998, undertaking to recognise that it is immoral for private individuals to
profit from labour performed by prisoners.

The Prisons Act says that every prisoner may be kept to labour
within or outside the precincts of any prison in any part of Zimbabwe and in
any employment that may be approved by the minister.

But the Act does not empower the minister to contravene
international statutes as governments are supposed to put in place
instruments that give full meaning to these standards.

A former inmate at Harare Central Prison who talked to this
paper said prisoners are usually taken to the farms very early in the
morning and return in the evening.

"They are usually in the fields by 5am until around 4pm," he
said.

This could mean that the ZPS is infringing an international
instrument which prohibits prisoners from working for more than ten hours a
day. Prisoners should work for at least eight hours under the provisions.

Zimbabwe is a member of the ILO that has strict standards
prohibiting use of prison labour by private individuals.

One farmer who spoke to the Zimbabwe Independent and has no ties
to the government but has used prison labour before said farmers applied for
prison labourers and signed a contract with the ZPS.

"We apply for prison labour through the ZPS office and we make
payments there too. They give you a contract, under which the prisoners work
for seven hours. We are not obliged to provide food for them but usually we
do as a way of motivating them," the farmer who preferred not to be named
said.

"But I just feel government is cheating these prisoners who in
most cases are badly treated by their wardens while working in the fields
yet the money they earn is not being used to improve the living conditions
in prisons."

These prisoners earn daily rates that are equivalent to the
statutory farm workers rates.

He said these prisoners are not examined for fitness before they
are taken to the farms as there are cases when some prisoners had to be
taken back because of ill-health. In the past Zimbabwe has attracted the
attention of human rights pressure groups on the unethical use of prisoners
as farm labourers.

Efforts to get a comment from the Minister of Justice, Patrick
Chinamasa were fruitless.

ZPS also failed to respond to questions sent to them although a
recent parliamentary committee report presented this month notes: "At
Chikurubi Maximum Prison there are only two working steam pots out of 20.
Prisoners are now having two meals instead of three because of limited
pots.a supplementary budget had to be allocated to avert a looming crisis on
prison rations, toiletries, medical supplies and detergents."


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Sedco collapse feared

Zim Independent

Lucia Makamure/Loughty Dube

THERE are strong fears that the Small Enterprises Development
Corporation (Sedco) could collapse under the weight of mismanagement,
shortage of manpower and lack of funds, the Zimbabwe Independent heard this
week.

Since the beginning of this year, the Reserve Bank of Zimbabwe
has not released any funds to the lending institution leading to an exodus
of management staff.

Sedco last disbursed funds a year ago in Mutoko when Claude
Maredza was still general manager.

The corporation caught media attention last year in October
after Maredza was suspended on allegations of exceeding board cash limits
and misuse of fuel allocations.

He was later exonerated after an internal audit undertaken by
the then finance and administration manager, Compasion Hondonga, cleared him
of wrong-doing.

Earlier this year Maredza's driver Tendai Makashu was sacked
while in police custody facing fraud allegations. Although he was later
acquitted, Sedco has not paid him terminal benefits. Sedco abolished his
post.

A source who refused to be named for fear of reprisals told the
Independent that there was gross mismanagement of funds at Sedco.

"The $15 million (revalued) which Maredza raised last year from
the National Social Security Authority was not disbursed to the
organisations that were supposed to benefit," the source said.

"Instead it was used to buy fuel for personal use and cellphone
allowances for management," the source said.

The source said some Sedco executives used to take fuel in drums
to their homes and farms.

The company's acting general manager Stewart Murambanhaka
initially refused to comment on the allegations, referring all questions to
board chairman, Owen Tshabangu.

Yesterday Marambanhaka said executives at Sedco were allocated
fuel.

"The fuel in question was my monthly allocation. Each manager
has a monthly allocation," he said.

"No such thing as taking drums of fuel to my farm ever happened.
The fuel drivers took to my farm in Mazowe was bought from Noczim and I have
the papers to prove it."

Marambanhaka has been acting general manager since Maredza left
last year.

The Sedco head office is also operating without a substantive
risk manager, internal auditor or a receptionist.

When the Independent made inquires at the headquarters the
person who answered the phone said the company did not have an internal
auditor or risk manager.

The Harare and Gweru branches have been operating without
managers for some time.

Masvingo and Bulawayo branches have both lost two managerial
personnel and Gweru and Mutare have lost one each. The main reason for the
exodus has been low salaries.

In October the company had its telephone lines cut for three
weeks over unpaid bills.

An insider revealed that this week the board met and discussed
issues that included the Mercedes Benz E240 that the company bought for
Maredza and is now being used by Marambanhaka.

Some board members wanted the vehicle sold.

Small and Medium Enterprises Development minister, Sithembiso
Nyoni, on Wednesday said she was not aware of what has been happening at
Sedco.

"I haven't heard anything concerning Sedco," Nyoni said.

"The board has not reported anything to me so I cannot say
anything. Talk to the chairman."

Tshabangu, the Sedco chairman, said he was surprised at how
issues that are supposed to be internal were out in the open.

"It is not true that there are branches that are operating
without managers. The Gweru branch manager resigned and the Bulawayo manager
is currently working in the Harare office," Tshabangu said, adding: "We now
have an internal auditor but I am not sure about the risk manager."

"Things have been difficult for Sedco and we had some staff
member leaving because we were short of funds."

Tshabangu said Sedco received significant funding from the
national budget.

"I am sure things are going to be better."

Meanwhile, Sedco employees have written to Vice-President Joice
Mujuru expressing concern over deteriorating conditions at the parastatal.

In their letter to Mujuru, the employees said 26 out of a total
of 77 of their colleagues left the parastatal this year alone due to poor
working conditions.

"Workers have been and continue to be frustrated by the
deplorable or humiliating salaries such that between January and November
2006 more than 26 employees have resigned including some long-serving
members.

"It is our view that management is deliberately frustrating
workers so that they leave the corporation with nothing after loyally
serving the corporation for a long time," reads the letter sent to Mujuru
who is also the focal person for parastatals in government.

In their letter to Mujuru, the workers allege that poor salaries
at the organisation have forced senior management to leave the organisation
while those still in employment are being frustrated by inefficient
management.


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Land reform goes on international trial next week

Zim Independent

Augustine Mukaro

ZIMBABWE'S emotive land reform programme goes under
international scrutiny next Friday when the hearing of evicted Dutch farmers'
case against government opens before the International Court.

The International Centre for the Settlement of Disputes (ICSID),
which is normally based in Washington, will sit in Paris on December 15.

The first hearing will be by a tribunal of three arbitrators,
Judge Gilbert Guillaume of France, former Boston University School of Law
dean Ronald Cass representing the farmers, and former Pakistani Justice
minister Mohammad Wassi Zafar on behalf of the Zimbabwe government.

The hearing will set a timetable for when the full claim will be
served by the farmers, the filing of the defence counter claim, the
claimants' reply and then Zimbabwe's rejoinder, disclosure of documents and
service of witness statements.

Judge Guillaume, a former president of the International Court
of Justice and a designee of the government of France to the ICSID panel of
arbitrators, will preside as the casting vote in the case.

Zimbabwe has been pushing for the hearing to be held in Harare
arguing that it would be difficult to raise the foreign currency required to
finance the process. The request was however thrown out on the basis that it
would not be fair to the farmers.

The ICSID last month demanded an advance payment of US$150 000
from Zimbabwe to meet anticipated expenses to be incurred during the
hearing.

"ICSID administrative and financial regulations provide for the
periodic advance payments to be made to the centre by parties to the ICSID
arbitration proceedings in order to enable the centre to meet the costs of
such proceedings, including the fees and expenses of arbitrators," an ICSID
letter to the government said.

If Zimbabwe loses the case it will be expected to pay in excess
of US$15 million as compensation for improvements, land (title deed value)
and expropriated moveable assets. The claim is currently accruing interest
backdated to the time land was expropriated.

The evicted Dutch nationals are demanding that Harare uphold the
Bilateral Investment Promotion and Protection Agreement signed by the two
governments and ratified by President Robert Mugabe in 1996, four years
before the chaotic and often violent land take-overs in 2000.


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Bubye loses River Ranch

Zim Independent

Shakeman Mugari

BUBYE Minerals has lost control over River Ranch Mine after the
High Court threw out its application to compel the Minister of Mines and
Mining Development to reverse his decision to cancel a special grant to the
mine.

The ministry cancelled Bubye Minerals' special grant to the
diamond mine on the grounds that it had not been properly ceded to them by
the owners, River Ranch Ltd.

The court said Bubye had not consulted River Ranch Ltd before
they got the permission from the Mining Affairs Board to take over the
special grant.

Bubye, however, made an application to the High Court seeking to
compel the ministry to reinstate the special grant to them. Their
application cited the ministry, Minerals Marketing Corporation of Zimbabwe,
Mining Commissioner and River Ranch Ltd itself.

In his ruling this week, Justice Lawrence Kamocha, concurred
with the ministry's findings that the special grant was not properly ceded
to Bubye.

He said the ceding of the special grant to Bubye was null and
void.

Justice Kamocha said it was curious that it was Bubye itself
which had applied for the grant to be ceded to them.

"It is common ground that it (Bubye) did not advise River Ranch,
the holder of the special grant, that it was
seeking the cession from the ministry," said Kamocha in his
ruling.

He also said River Ranch Ltd had not been given the chance to
present its case when the special grant was ceded to Bubye.


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RBZ imports poor quality wheat

Zim Independent

Augustine Mukaro/Shakeman Mugari

THE Reserve Bank of Zimbabwe is importing poor quality wheat
from Intshona Agricultural Products of South Africa, the same company that
supplied substandard fertiliser to Zimbabwe last month.

The controversial fertiliser imports cost former Agriculture
permanent secretary Simon Pazvakavambwa his job last
week.

Intshona supplied between 160 and 800 tonnes of fertiliser,
prejudicing the country of up to US$300 000.

Confidential documents to hand show that Intshona was awarded a
contract to supply 600 000 tonnes of wheat to Zimbabwe. The first tranche of
90 000 tonnes is expected by the end of the month, following a deal signed
between the RBZ and Intshona in June.

The wheat has been classified as BS1 and BS2 grades, which
experts said was low quality wheat best suitable for stockfeed.

The wheat is described "as per South African standard, mixed
quality of BS1 and BS2 grades or equivalent of protein 10%, specific weight
72kg, germinated grain 5%, moisture 13,5% and grit 0,5%" by Christa van
Louw, Intshona executive chairperson in a letter dated September 25.

The letter was countersigned by Millicent Mombeshora on behalf
of the RBZ.

Experts said wheat for human consumption should not contain any
germinated grain and should have a density of around 75% and a protein
content at around 14%.

"Once there is germinated grain, that wheat should be
recommended for stockfeeds," experts said.

The wheat costs US$345 per tonne.

President Robert Mugabe recently summoned RBZ governor Gideon
Gono and Agricultural minister Joseph to explain their involvement in the
procurement of the substandard fertiliser from the South African company.

The new grain deal has triggered fears that there could be
senior officials linked to Intshona who are benefiting from import deals.

Bakers said poor quality wheat lacks glutton needed to give
bread the rubbery properties which keep it fresh for some time.

"Lack of glutton results in substandard bread that crumbles when
you try to slice it," one baker said.

He said this explained why most bakeries had stopped selling
sliced bread which had become common in supermarkets.

* Meanwhile, another letter written on the same day regarding
maize imports shows that Intshona will also supply 190 000 tonnes of maize
by March 2007 as first tranche of the consignment.

"Intshona Agricultural Products (Pvt) Ltd, hereby confirms with
full corporate and legal responsibility, under full penalty of perjury that
we are ready, willing and able to sell product mentioned Non-GMO Maize,"


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CoL soars to $43,2m

Zim Independent

Paul Nyakazeya

THE cost of living as depicted by PriceWaterhouse Coopers (PWC)
for a high income family of six rose to $43,2 million a year from $2,3
million (revalued) last year.

PWC noted this week that the main inflation drivers during the
period under review were consumables, which went up 2 633% year-on-year,
domestic workers, up 2 627%, and personal care which rose by 2 362%.

On a month-on-month basis, domestic workers were up 150%, canned
foods advanced 66%, while personal care was 62% higher. Day schooling showed
the lowest annualised increase at 729%, followed by air travel on 1 001%.

"The record month-on-month rate for high income earners was
48,9% in September. A high income family now requires $43,2 million a year
to live compared with $34,16 million in October, $24,12 million in September
and $16,2 million in August," PWC said.

According to PriceWaterhouseCoopers' inflation series for
November, the high income inflation index rose by 26,5% month-on-month and 1
716% year-on-year.

"High income inflation was running at 1 716% year-on-year in
November, having risen by 26,5% from October. It was a slight decline on
October figure of 1 736%," said PWC. It said inflation for middle income
earners during the same period was accelerating at 1 966%, a record rate
among all 3 categories (high income, middle income and low income).

"Inflation for middle income earners was up 1 966% in the year,
having risen 37,5% on the month with consumerables showing the largest
annual gain at 2 821%, while medical was the lowest at 1 168%," PWC said.

In October, middle income inflation was running at 1 612% year
on year. Canned foods drove the month-on-month increase, rising 79% from
October, while consumerables were up 67% on the month.

A middle income family now requires $18,62 million a year to
live the life they were accustomed to, compared with $13,54 million in
October, $10,06 million in September and $901 435 in November last year.

Prices for low income earners rose by an average 37,7% on the
month and were accelerating 1 658% on the year, more than 200 percentage
points up on October's 1 442%, but below the record 1 773% achieved in July.

"The figure was driven largely by the 2 962% increase in the
cost of personal care year-on-year. At 953%, rent was showing the lowest
annualised increase," said PWC.

It said the annual income required at $2,878 million compared
with $2,09 million in October, $1,561 million in September, and $163 682 in
November last year suggesting that taking the government's parameters for
measuring of inflation, prices rose by 30,5% between November and October,
and were accelerating at 1 102% year-on-year.

Meanwhile, the Consumer Council of Zimbabwe's low-income urban
earner's monthly budget for a family of six were most Zimbabweans fall under
has risen from $141 706,79 in October, to 208 714,84 in November reflecting
a 47,3% increase.

In US$ terms the Family Basket shifted from US$566,83 in October
to US$834,86 in November.

During the month under review notable increases were recorded in
Roller Meal which rose by 197,79%, cooking oil by 196,16%, washing bars by
112,12%, rice by 95,30%, salt by 91,05%, margarine by 85,03%, and transport
by 50%.

The total cost of the family basket increased at an increased
rate by 47,3% in November. In October and September it rose by 26,4%
and16,3% respectively.


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Cost of freedom

Zim Independent

Ray Matikinye

THE cost of liberating ourselves from colonialism and settler
domination is rising.

Figures released in the budget statement last Thursday indicate
government's lack of prudence in awarding individuals honoraria for fighting
a war to defeat settler colonialism.

Copies of the "blue book" that spells out the budgetary
appropriations to each ministry became available on Monday.

Nine years after "Black Friday" in November 1997, when the
dollar crashed, the Zimbabwean taxpayer is saddled with a heavy burden.

A look at Finance minister Herbert Murerwa's budget statement
reveals the folly of certain decisions government has made for populist
political ends - decisions that debase the noble sacrifices every peasant,
professional or student made to throw off the colonial yoke.

Quite how Zimbabwe has acquired the habit of aping others,
without taking time to weigh the long-term advantages and disadvantages
simply boggles the mind.

The decision seems to have been cloned from pensions whites
received for fighting in World War II.

Under Constitutional and Statutory Appropriations, the cost of
fighting for our liberation has risen from $334 323 360 to a whopping $7 111
624 000 for those that were detained or jailed on account of their political
activism.

For the more intrepid that made it to Mgagao, Tembwe, Chimoio
and such other camps, the cost of their courage has scaled fresh heights.
From a princely $2 750 899 696 during the last financial year the projected
cost next year is $83 297 288 000.

The figure is eight-fold the amount allocated for the Youth
Development Fund under the Youth Development and Employment Creation
ministry.

Murerwa admits: "Youth constitute 67% of our population with
around 400 000 leaving school every year. The formal sector absorbs only 10%
of the school-leavers resulting in a large number being unemployed."

A whole ministry in charge of small and medium enterprises, to
support development of SMEs as part of an economic development strategy, has
a budget less than half the outlay for war veterans pensions at $41 024 367
000.

The combined payouts for independence war fighters, detainees
and restrictees at $90 408 912 000, exceeds the appropriation for the Rural
Housing and Social Amenities ministry 9,32 times.


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New farmers require subsidies from government

Zim Independent

By John Robertson

GOVERNMENT'S intentions to replace former freehold title to
agricultural land with 99-year leases appears to offer political advantages
that make the concept attractive to political authorities, but no advantages
to the lessees can be determined from the lease agreement, other than that
it commits the lessee to separate yearly rentals for the land and
improvements, rather than a single purchase price.

For any improvements on the land, the rental calculated by the
authorities, or lessor, is payable by the lessee for the following 25 years,
unless the lessee chooses to reach agreement with the Ministry of
Agriculture for the outright purchase of these improvements. And, on signing
the lease, the lessee is required to pay within three months, a one-off
deposit equal to the sum of the annual rent on the land and the annual rent
on improvements.

These outlays secure for the lessee the rights to occupy and
farm the area specified in the lease. These rights bring with them a series
of obligations and requirements that must be met at the lessee's expense.
They include:

* Taking up permanent residence on the property, or appointing a
manager who will move onto the property within three months;

* Fencing and farming the property in a sustainable manner
acceptable to the lessor;

* Gaining approval for a five-year development plan that will
have been submitted ahead of the signing of the lease and;

* Initiating minimum developments as required by the lessor
within three months of signing the lease.

Minimum developments within the first three months include:

* Development of a permanent homestead and water supplies for
personnel and animals;

* Provision of approved access roads;

* Erection of adequate accommodation for employees and;

* Initiating minimum production in terms of the approved plan.

A new five-year plan must be submitted for approval on the
expiry of an existing plan or if the lessee is directed to do so by the
authorities.

Other requirements include ensuring that no illegal tree-felling
takes place, no noxious weed growth is left unchecked, no poaching of
wildlife takes place, fire-breaks are maintained and measures are taken to
prevent soil erosion as well as to prevent the development of plant and
animal diseases.

Where lessees inherit plantations, they are required to
rehabilitate and maintain them to the satisfaction of the authorities.

All lessees are required to assume full responsibility for
maintenance, repairs and replacements required to ensure the upkeep all
other improvements already on the property.

If the lessee fails to meet these responsibilities, the
authorities will be entitled to carry out the work and recover the costs
involved from the lessee.

While the duration of the lease is 99 years, the lessor reserves
the right to terminate the lease if the lessee becomes insolvent, or fails
to properly manage the leasehold, fails to meet the terms and conditions of
the lease, fails to meet the rental or other financial commitments to the
lessor or fails to pay the required rates, levies and other charges to local
authorities.

If the authorities do not receive settlement or acceptable
representations after giving the lessee 30 days notice of its intention to
terminate the lease, the lessor is entitled to cancel the lease and
repossess the leasehold after another 90 days.

From the point of view of the farmers, the leasehold terms and
conditions suggest that they will have to have confidence in their abilities
as well as courage to commit themselves to five-year plans, and will have to
meet very high standards to retain their rights to continue farming.

Two issues arise from this: firstly, as a percentage of the
population, the number of farmers who have skills of this order is very
small. Secondly, even those who have the necessary skills are likely to find
that profitability will still elude them on their small-scale leasehold
operations.

Government's intention is to have tens of thousands of farmers
work to their A2 land resettlement format with the support of 99-year
leases. If, for political reasons, the intention is that very nearly all of
these farmers are to be defined as successful, generously low performance
levels will have to be accepted when interpreting the terms of the lease
agreement.

Concessions that permit farmers to be "successful" without being
profitable will make subsidies a necessity. In effect, farmers will be
invited to become reliant on subsidised input costs together with support
prices for crops. Under such arrangements, the farmers' need for loan
facilities to finance their operations will be greatly reduced.

For farmers, this will be just as well, as their prospects of
using their 99-year lease agreements as collateral in support of bank loans
are extremely poor. This is true even though in Section 24 of the lease
agreement government claims that, because the lease can be registered in a
deeds registry and endorsed to the effect that certain sums are owed to
certain lenders, the lease can serve as collateral for the loan.

While some banks might extend loans to certain farmers in token
gestures to show compliance with government policies, given the government's
determination to see their land reform policy succeed, the lease agreements
will be found to have no legal standing as collateral for several
fundamental reasons:

* At the most basic level, the lease agreement does not qualify
as collateral because the property referred to in the agreement cannot be
bought or sold on an open market and it therefore has no market value;

* The lessor's rights to terminate the lease after serving the
lessee 90 days' notice renders what is left of the 99-year duration of the
lease irrelevant. While the lender's debt recovery rights might remain
intact, their prospects of recovering the debt will have been effectively
demolished;

* The claim that borrowed money used to carry out improvements
on the property increases the value of the property does not translate into
a realisable sum of money that can be recovered by the lender in the case of
the borrower defaulting on the repayment terms;

* Borrowers might default on repayment obligations at any time,
but would certainly do so if evicted from the property by the lessor. In
apparent recognition of these shortcomings, Section 24.3 of the lease
agreement provides for amounts outstanding to be recovered from the person
to whom the lease is ceded or transferred, and states that the final
transfer of the property will not be permitted until the intending new
lessee has settled the previous leaseholder's debt or the new lessee has
come to an acceptable arrangement with the lender.

This highly impractical provision is certain to cause every new
applicant to seek an unencumbered property. Every property that is burdened
by outstanding debt will remain vacant and every affected lender will be
forced to forfeit the amounts owed. But as the lease documents will not be
readily accepted as collateral in the first place, government will have to
remain committed to support and subsidies, the costs of which will be borne
by taxpayers and will impact on the whole country through inflation.

Direct government assistance to individual farmers so far has
been typically confined to farm inputs, but the authorities have tried to
encourage farmers to also become owners of their own farm equipment, rather
than source the needed capital items from the state. Loan finance is usually
essential for the purchase of such assets.

Lessees trying to buy farm implements might be able to borrow
from banks on the strength of the security of a Notarial General Covering
Bond that would put the bank's claims ahead of concurrent creditors if the
farmer went insolvent or was evicted from the leasehold for some other
reason.

However, as these items of equipment would be moveable assets,
the bank would face the additional risk that the assets could be moved
beyond their reach ahead of the disclosure of financial difficulties.

For the government, the advantages centre on features of the
arrangements that will permit the state to:

* Acquire and exercise ultimate control over the land;

* Make agricultural land an asset within the gift of the state;

* Eliminate pressure groups of farmers empowered by property
rights;

* Re-allocate land that officials consider is not being
efficiently used;

* Protect peasant communities from the harshness of market
forces;

* Receive rental incomes from all lessees;

* Receive separate rental incomes from the improvements
installed by previous property owners;

* Administer, regulate and control the initial selection of
lessees;

* Directly influence the selection of successors when existing
lessees choose to vacate their leaseholds or have their leases cancelled.

In its launch of the new 99-year lease agreements, government
made no reference to these underlying objectives, but confirmation of their
being intrinsic to government's thinking is its basic distrust of market
forces and its unwillingness to permit citizens to exercise freedom of
choice.

As the initial beneficiaries of land redistribution are being
given the land free of charge through the exercise of government patronage,
the intention is that their successors will also take over the land free of
charge through the transfer of patronage to them. However, they will be
expected to pay a rental to the state for the use of existing improvements
or pay the former lessee for improvements carried out during their tenancy.

In previous presentations in support of its 99-year leasehold
propositions, government has cited the fact that considerable areas of land
in certain developed countries are successfully leased to farmers.

Unfortunately, the conditions the government has entrenched in
the leases make them distinctly different from conditions that apply in
first world countries.

In the countries concerned, the leased land in question is not
owned by the State; a property-owning individual, family or company owns it,
each lease is on an identifiable piece of land, each lease has a market
value and each lease is therefore marketable. Because of the marketability
of the lease, it can be offered as collateral in support of a loan.

This protects the lessor, as a bank that is owed money that the
lessee cannot repay has the legal right to place the lease on the market.
When a new lessee pays for the remaining years covered by the lease, the
bank will recover the funds owing. Laws governing tenant rights also protect
lessees, but in exchange they are required to meet these fully acceptable
obligations or forfeit their rights.

In the event of a lessee deciding to relinquish a lease, the
market value of the remaining years will be established in the market, a
buyer will be sought through the market and the transaction will be
formalised and registered in the market by real-estate agents and
conveyancers.

Other than collecting transfer duties registering the new
lessee, the state plays no part in the procedures.

These features make all such lease agreements bankable in other
countries, but the leases being issued by the Zimbabwe government are not
bankable, simply because no mechanism exists that could be used to establish
a market price and no market exists that will permit a normal transfer of
ownership of the pledged security.

Government's right to approve or reject any applicant wishing to
take over an existing lease further distances the arrangements from the open
market requirements of genuine, bankable collateral.Notes on the evolution
of leasehold to freehold title leasehold arrangements first evolved from the
earlier feudal systems in Europe, as landlords and tenants tried to find
means of unlocking the capital value of land.

As the shortcomings of leasing became apparent and as the power
of the landed aristocracy waned and as the need for capital and security of
tenure increased, freehold ownership rights offered the required assurances.

When new areas of settlement and investment were being
established in the Americas, the feudal systems of Spain and Portugal were
transplanted into South and Central America. However, in North America, the
evolving freehold land tenure systems were adopted. Today, hundreds of years
later, South and Central America remains a collection of developing
countries, but North America has become the most prosperous area in the
world.

The essential difference between these two vast areas - and the
essential difference between the former communal and commercial areas of
Zimbabwe - is that, where they had individual title, the owners of the land
used its capital value as leverage to raise the funds required to develop
the land's potential as well as their own. With access to the capital they
needed and the confidence that came from security of tenure over their
property, they achieved remarkable successes.

Property owners' title deeds provided them with a bridge that
led directly into the banking sector. Their ability to make long-term plans
and their eagerness to repay their loans to preserve their ownership rights
drew from them exceptional levels of resourcefulness, ingenuity and
determination to succeed.

By contrast, where the occupants of the land were tenants, their
ability to raise money to carry out development work or to augment their own
skills was severely limited. Their uncertain hold on the land they occupied,
but could not own, left them with neither the means nor the incentives to
plan ahead, and they never felt inclined to shoulder the burdens of expense,
risk and effort to invest in productive capacity that would enhance the
value of someone else's property.

Today, many South American countries are moving towards
individual freehold property rights in an effort to accelerate development.
China has accepted the need for individual property rights, and ownership
rights are being restored to East European families that were dispossessed
of properties after the USSR extended its territories after World War II.

Zimbabwe's proposals are taking the country in the opposite
direction.

The government's declaration at the end of the lease agreement
that "the lessee may use this lease as collateral in securing agricultural
financial assistance from any financial or agricultural institution" is not
enough to make the lease acceptable to lending institutions.

As the conditions created by land reform have effectively
eliminated the collateral value of farmland, they have made development
funding entirely the responsibility of the state and they have made each
individual's performance dependent on state subsidies and support. Personal
progress within such a system has therefore become dependent upon political
patronage, rather than upon resourcefulness, good management and hard work.

Although fixed assets of some value could be built with money
loaned by a bank, the separation of land from the improvements on that land
makes the recovery of the debt almost impossible if the borrower defaults.
This is
because the farmer's right to remain on the land is conferred,
not by business procedures supported by market forces, but by a political
act that the bank cannot challenge.

Investment is the first requirement for economic growth. By
according a capital value to land, considerable capital sums are unlocked
and made available to the investment process. Individual property rights,
market prices for land, transfers of ownership through the market and the
official registration of ownership rights make up the essential components
of the market mechanism that releases this capital onto the market.

The responsibility, accountability and legal obligations that go
with individual freehold property rights quickly help communities to accept
the challenges of modern economic development and they place the means of
achieving profound economic empowerment within reach of the majority. But
because Zimbabwe's authorities consider these levels of success to be a
threat to the ruling party's power-base, these advantages are being denied
to Zimbabwe's population. Zimbabwe's current policies very clearly have
nothing to do with empowering the people.

Government's decision to revert to feudal state-ownership of
land is already proving to be a massively retrograde step.

* Robertson is an independent economist.


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Firms should stand up to govt over arrests

Zim Independent

By Eddie Cross

THE decision last week to imprison two of the largest bakers in
Zimbabwe for six months and to hold them in custody while their appeal
hearing was dealt with was a shock to the entire business community.

Not only was the sentence out of proportion to the "crime" they
had committed, but the fact that the maximum fine for the same offence by
the company they ran was a paltry $10 000 demonstrates the absurdity of the
sentence.

Their crime was to sell bread for a price that was above the
"controlled price". In fact, the last time the price of bread was formally
controlled by a Gazette notice was many months ago at the level of $85 per
loaf. There are no regulations which say that the price of bread should be
above this even though price controllers are using $295 as the "controlled
price".

There are now over 6 000 outstanding court cases against
business managers in all fields on price control-related issues. This means
that all of them may be subjected to the same treatment. On Tuesday, the
price control officials raided the largest food company in Bulawayo and took
a "warned and cautioned" statement from the managers. The issue on this
occasion was the price of cooking oil. The managing director of the largest
wholesale group in the country was on the same day in court on the same
charges.

Companies are responding by withdrawing stock from their shelves
and avoiding products subject to controls.

Bakers have either stopped producing bread which they cannot
manufacture and make a profit at the controlled price and switched to
non-controlled products or slashed the weight of a loaf of bread by 40% in
order to make it profitable.

It is clear that this standoff cannot continue for much longer
without serious consequences. Firms are threatened with closure by the
crisis while managers are refusing to continue operations if they threaten
their own safety and security.

It is time for the major firms to either stand up to government
or take it to court.

In the event that the courts support the government, then the
production and distribution of controlled products through the formal sector
will become impossible. Such a situation is in the interests of nobody
living in Zimbabwe.

By the way - the price of bread they are trying to enforce is
the equivalent of less than R1 or US$0,13 per loaf.

The price of bread in all our neighbouring countries is the
equivalent of at least R3,50 per loaf.

* Eddie Cross writes from Bulawayo.


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Who has Mugabe's ear . . . Gono or Murerwa?

Zim Independent

Shame Makoshori

AS Reserve Bank of Zimbabwe governor Gideon Gono sat in the
public gallery, chin in hand, listening to Finance minister Herbert Murerwa's
attack on his failed monetary policies, a whirlwind of thoughts must have
shot through his mind.

In a major turn of events that could derail Gono's ongoing
experiments with the economy, Murerwa finally woke up last week and demanded
back the powers wrestled from his ministry by Gono.

Murerwa's body language spoke of a man fed up with the ruinous
actions of his defiant subordinate.

There have been cold wars in the corridors of the Ministry of
Finance and the RBZ over Gono's funding of public and private sector
projects outside national budgets.

The RBZ governor had until last week literally taken over the
role of the ministry in a development that has been criticised by industry,
commerce and some in government.

One journalist asked Gono: "Does Zimbabwe need a Minister of
Finance?" to which he retorted that ancient textbook economics did not work
in Zimbabwe's rapidly deteriorating economy.

While presenting the 2007 budget last week, Murerwa came out
blazing, attacking unplanned expenditure and the central bank's quasi-fiscal
activities in the economy.

"Consistent with our constitution and the Audit and Exchequer
Act, beginning 2007, all such and any other additional public expenditures
will be strictly and adequately reflected through the budgetary process," he
said.

"Such quasi-fiscal expenditures had risen to levels that are now
undermining our turnaround efforts by increasing the growth of money supply
and therefore fuelling inflation," Murerwa said.

Economic analysts say money supply growth contributes over 30%
of core inflation.

Money supply growth has escalated to over 400% against an
average output of between 0 and 5% as a result of the RBZ's quasi-fiscal
operations, but Gono has ignored advice, pumping in $2,7 billion in 2004
through the Productive Sector Facility.

He purchased agricultural equipment, inputs, funded dam
construction projects, channelled billions into small enterprises,
infrastructure and many others.

The quasi-fiscal expenditures reached $372,9 billion last year.
Incorporating these unplanned expenditures into the 2006 budget increased
the overall budget expenditures to $824 billion from $451 billion.

This was against projected revenue inflows of $250 billion. The
budget deficit had ballooned, Murerwa argued last week, from 18% to 43% of
GDP.

This is too big a deficit for an economy in crisis to manage.
Economists said budget deficits must not exceed 5% of GDP.

Gono has his own supporters though who argue that given the
continued shrinkage of the tax base as a result of massive industrial
closures, employment losses and low disposable incomes, Murerwa would not
collect enough revenue to finance the budget.

Independent economist John Robertson said Gono's quasi-fiscal
operations began after realisation that government's purse was empty.

"It was a brave statement which might not be possible to
accomplish," Robertson said this week of Murerwa's announcement.

"The reason why Gono had introduced the quasi-fiscal operations
was the lack of finance. To some extent, it would be necessary that he is
allowed to continue," he said.

Quasi-fiscal allocations to parastatals and local authorities
alone had gobbled $17,8 billion by November with no corresponding increase
in output as envisaged by Gono.

University of Zimbabwe Graduate School of Management lecturer
Isaac Kwesu said the response by the productive sectors was slow.

When Gono arrived at the RBZ in December 2003 he promised to
reduce inflation - then around 600% - to two-digit figures by the end of
2005. But inflation has surged to its worst levels, ending October at 1
070%.

Gono has in recent months focused on funding the productive
sectors.

This has outraged the International Monetary Fund (IMF) that
warned this would escalate the economic crisis.

"The approach we have taken to the economic turnaround programme
is not the textbook type. What we are trying to do is to be practical and
relevant to the situation," Gono told New African magazine last year.

"We are taking a holistic approach. and please do not just focus
on the Finance minister, the central bank is now dealing with agricultural
issues, communication issues, therefore it is only the mischievous mind
which wants to divide the governor from the constituent parts of the
economy," he argued.

However, the results have been catastrophic and the taxpayer has
borne the brunt of price distortions, high interest rates and the
quasi-fiscal operations.

In most cases, the quasi-fiscal expenditures did not achieve the
desired supply response owing to the abuse of availed facilities by most
beneficiaries as a result of weak control measures.

Kwesu said last week's phasing out of quasi-fiscal expenditures
from the RBZ was the best announcement by Murerwa in his budget statement.

"We were worried that the hyperinflation the country is facing
was instigated by Gono's quasi-fiscal operations," he said this week.

"It was good to see authorities finally realising how
quasi-fiscal expenditures had undermined our turnaround efforts by
increasing levels of money supply growth, thereby fuelling the budget
deficits and money printing," Kwesu said.

"Whilst I recognise that money supply is not always
inflationary, it becomes inflationary if its growth is greater than output.
A deficit has to be financed and this means in the absence of foreign lines
of credit, we have to borrow from the local market or print money.

"But printed money is not income, the majority of people confuse
this, including the governor," Kwesu added.

Gono's inner circle at the RBZ said Gono does not easily give up
and could take his case to the president to justify his actions.

"Adamburwa musweka murume uyu (his tail has finally been cut),
but he does not give up easily. However, he could be losing now because if
you see the minister making an announcement it means the matter has been
discussed at length and his bosses are not happy with him," said an RBZ
official.

But Gono has previously made critical decisions without
consulting his principals at the Ministry of Finance.

In August, he implemented radical changes to the currency which
were aimed at combating vice and currency externalisation.

He brought in new bearer cheques without consulting Murerwa.

This week analysts said Gono could easily convince Mugabe that
Murerwa's moves were militating against a project whose results would turn
around the economy.

On Saturday he announced the postponement of his monetary policy
review, originally scheduled for yesterday, to January 2007 in what
observers thought was a result of Murerwa's directive which had forced him
to readjust the policy to reflect the new requirements.

"He has no option," said Kwesu.


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The IMF must wake up to reality

Zim Independent

By Walter Hurley

NOW that the IMF is back in town for consultations with
Zimbabwean authorities one would hope that they will at last adhere to their
charter and come to terms with reality.

After nearly a year of their alleged "IMF transparency" we are
yet to hear where the last surprise payment by the regime to the IMF
actually came from.
In what is now a depiction of the erosion of general Western
standards and values, not less than by the bean-counters from the IMF, no
more do we hear about the suggested installation of good governance in
Zimbabwe to save it.

Neither the Reserve Bank's governor or the IMF now even bother
to mention corruption and the evil disposition of the Zimbabwe government
that has caused the downfall of the nation.

Gideon Gono, once said to be a proponent of restoration of law
and order and the respect for property rights, is now silent on these
matters. If one were to research his own wealth and history, there may be a
bigger story to tell.
One has to remember that Gono could be considered as "royal
game" - a protected and especially nurtured species who knows too much to be
alienated.

The so-called anti-corruption campaign is a primitive joke. The
facts are that high-level corruption as revealed to the Reserve Bank's
Investigation Unit has been ignored by that office.
Various confusing and contradictory policy statements
continuously emanate from the regime.

Whilst there is a leadership and power struggle in progress, it
is not difficult to filter out the primitive strategies of the aspirants and
office bearers.

Playing the amateurish good guy versus the bad guy roles, Gono
until recently provided window-dressing to the world that he may have some
sane contributions to make to save the nation.

Naturally, he is powerless to influence change by the greedy or
mentally-challenged geriatrics still hanging onto power. Now he is stalling
on his promised review statement pending "consideration of advice" from the
IMF! We can count on the fact that whatever he says in the coming days will
not be adhered to by the real persons in control of the Zimbabwean circus.

Unless the IMF officials are brain-dead, many others know that
President Mugabe has often told the IMF impolitely to get lost - we do not
need them! (Perhaps he hallucinates that the enormous debt and the lack of
specific performance debt will be written off!)

The rug is repeatedly pulled from under Gono's feet by alleged
radicals in the regime such as Didymus Mutasa and others who are clueless
about the fact that government is supposed to respect the law and serve the
nation.

Zimbabwe's external debt exceeds US$2,2 billion. This excludes
expected liabilities from pending international court cases for damages,
theft and the like, and for millions of pounds that the government is liable
for institutionalised looting from externally-based investors and from many
citizens of the country.

Many have speculated as to how Zimbabwe still survives. There
are many answers that include the fact that the government does not pay its
debts, theft and conversion of national and private assets, aid from pariah
states, the conversion of enormous sums of alleged unmonitored donor aid
money, and the willful violations of international laws such as Bippas that
Mutasa says are not worth the paper they are written on.
What Western nations and related institutions finally need to
come to terms with is that:

* The president has continuously failed in proper service and
diligence to the nation, and the only way he can keep support is by enabling
evil, looting, corruption, human rights abuses, and the local and
intentional breakdown of proper law and order;

* The state has institutionalised and legitimised extortion,
lying and fabrication, corruption and widespread criminal conduct. The
beneficiaries of this accommodation is naturally reserved for the solidarity
elitists riding on the party faithful gravy train;

* Corruption and evil emanates from the top down. Politburo
comrades, judges, magistrates, ministers, Zanu PF parliamentarians, civil
servants, police and militia forces can generally be considered to be
totally corrupt or to be devoid of moral principles. They hold their offices
only out of hand-out patronage provided "solidarity" is returned together
with loot sharing. There is no prospect whatsoever of proper law application
when the related institutions are wholly corrupt and self-serving;

* Zimbabwe has stolen, mortgaged or sold most of its assets to
survive a while longer;

* Zimbabwe has no prospect whatsoever of ever serving its
enormous local and global debts. The IMF must now count its losses;

* In view of the conduct of this regime consideration of debt
forgiveness and further aid of any kind by woolly-minded Western deadbeats
should terminate forthwith. Zimbabwe has brought about its own demise.

Most citizens of the country are actually complicit since they
have cowardly succumbed or often willingly joined with the corrupt
retrogressive regime. The "useless" United Nations and the boot-lickers of
the West have effectively sponsored the addiction to blame-passing,
hallucination, begging and dependency syndrome in Zimbabwe.

* Mugabe continues to cash in on the stupidity of the West. He
is at least twice smarter than Bush, Chirac and Blair put together.

* The regime will never voluntarily give up its evil ways.
Naturally this is because the associates are so steeped and dependent on
their patronised power and looted wealth the prospect of local or
international prosecution is unpalatable to them.

* Zimbabwe is now a certifiable failed state that is clearly
beyond rehabilitation for a long time in terms of modern civilisation.

* The intellectual assets of the nation have long since fled to
better and saner pastures - not much is left of capable intellectual
resources.

* The life support aid mechanisms from the West should be pulled
out of the Zanu PF polluted Zimbabwe near-death cadaver.

* Zimbabwe should deservedly be booted out of the IMF, and that
its debt should be forthwith demanded to be serviced.

* Let the inevitable meltdown now be stimulated and life started
again after the extinction of the dinosaurs.

* Hurley writes from Pretoria, South Africa.


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99-year lease gravely deficient

Zim Independent

By Chris Mhike

THE much-flaunted 99-year Lease Agreement is a high-sounding
nothing. In numerous respects, it gives with one hand and takes away with
the other. In that disempowerment lies the document's grave deficiency.

The agreement purports to empower "new farmers" who have settled
on land under the A2 scheme, when in fact it wipes away the traditional and
sound concept of land ownership.

The document rightly acknowledges in its preamble section, that:
"It is desirable that the farmers be given security of tenure . for land
allocated to them."

Under the subject of the Law of Property, "security of tenure"
refers to the assurance given to the owner or occupier of a given piece of
property, that his/her real rights over that property shall not be adversely
affected, through human action, for a certain and considerable period of
time.

The 99-year lease agreement however only goes as far as
expressing the desirability of endowing "new farmers" with the prize of
security of tenure. The substantive provisions of the lease agreement leave
farmers vulnerable to arbitrary dispossession.

While on the face of it, the lease agreement guarantees the
lessee (that is, the beneficiary farmer) and dependants or family,
century-long tenancy, in actual terms, the guaranteed duration of tenancy is
only three months.

The agreement carries a clause which stipulates that ". the
lessor (that is government), reserves the right to cancel this lease and
repossess the leasehold, on ninety (90) days notice or any longer notice
period as the lessor may deem fit".

That possibility of termination upon three months notice dilutes
the whole concept of security of tenure for the farmer under the agreement.
The dilution entrenches the description of the document as a defective one.

Termination on "90 days or longer" notice is a qualified course,
to apply to in situations of the insolvency of the farmer, multiple farm
ownership, "any breach of the terms and conditions" of the lease,
sub-standard use of the land, or failure by the farmer to pay rentals.

Certain qualified situations do make sense, for example, the
sub-standard use of land would warrant corrective action. The prevailing
wastage of rich soil around the country is testimony to the senselessness of
allocating farmland to incapable persons.

Yet the document lacks the mechanism to determine levels of
acceptable or unacceptable productivity. The measurement of productivity
remains opinion-based, as opposed to scientific or systematic inquiry.
Government holds absolute power and discretion in the assessment process.

If government is serious, it would have in the first place
developed an effective and systematic process of separating sincere farmers
from chancers. Under-utilisation of land would therefore not have been a
serious an issue as it arises in the lease agreement.

The history of civic and political governance has illustrated
over the years that opinion-based decision-making models are open to abuse.
That aspect therefore also makes the agreement deficient.

Space constraints make it impossible to interrogate the other
unjustified situations under which termination may be effected on short
notice.

The 99-year Lease Agreement goes deeper than threatening farmers
with eviction on short notice. It provides that government "may at any time
and in such manner and under such conditions as it may deem fit, repossess
the leasehold (that is the relevant farmland) or any portion thereof if the
repossession is reasonably necessary in the interests of defence, public
safety, public order, public morality, public health, town and country
planning or the utilisation of that or any other property for a purpose
beneficial to the public generally or to any section of the public".

That is definitely a very long provision. More significantly, it
is very wide and vague. The use of terms such as "at any time" and
"conditions as it may deem fit" are extremely wide. Many of the concepts
listed, including "public safety", "public morality", and "purpose
beneficial to the public generally", are certainly vague.

Yet local and international jurisprudence has long established
the principle that wide and vague provisions have no place in a democratic
society.

If Zimbabwe is indeed democratic as claimed by the reigning
rulers, then all the wide and vague provisions contained in the agreement
ought to be done away with.

In giving one hand and taking away with the other, Clause 24 of
the Lease Agreement provides that the lessee may register the lease with the
Deeds Registry, and that he may use the document as collateral in securing
agricultural financial assistance from creditors.

However, the challenge lies in the reality that financial
institutions will hesitate or even refuse to accept the lease as an
instrument to be trusted for security purposes.

Some of the respectable bankers and economists have already
expressed their reasoned reservations about the document. A few
government-backed finance and banking organisations could swallow the
lease-based assurance. Such institutions have been financing new farmers
anyway and incurring heavy losses in the process, without any reference to
any lease agreement.

It will be interesting to see new financiers coming onto the
scene, on the strength of the lease's assurances.

Financiers shall be dealing with a weak lessee who pays rent to
an omnipotent lessor. The government shall, under the lease, in its sole
discretion, determine rental levels, on an annual basis. Should the farmer
be unable to pay the stipulated rent, eviction shall become imminent.

Any structural alterations to existing infrastructure, and
agricultural or pastoral improvements, ought to be done in consultation, and
with the approval of government.

The farmer's weakness extents even to livestock. Under Clause 9
of the agreement, where the farmer intends to sell five or more cattle, such
intention should first be communicated to government.

One in five of the animals on commerce should be offered for
sale to the government, or person/s or organisation/s whom the government my
elect to be agents. That could be one cabinet minister, some parastatal,
Zanu PF or any other person deemed suitable for government's benevolence, at
the expense of the lessee.

Should government not exercise its right of first refusal, the
farmer is obliged to stick to the selling price that had been offered to
government, notwithstanding the dynamics of the prevailing
hyper-inflationary environment.

These provisions are clearly flawed at law in that they create a
serious injustice, and they are unintelligible in economics in that they do
not make economic sense.

The provision for the appointment of government agents is also
politically deficient in that it opens up the whole system to abuse and
patronage.

To further weaken the lessee, the agreement ensures that the
farmer cannot freely transfer title over land. He would first have to apply
to government for permission to transfer. Obviously, as with any other
application, such application could be granted, or could be denied.

Such limits to the transferability of title wipe away the
assurance given, as to the possibility of using the lease as a form of
security of collateral.

Lenders and prospective farmers would rather deal with the party
that wields more and actual power, that is government, than deal with an
impotent new farmer whose tenure on the land is subject to numerous and
nefarious conditions.

Without sound title to land, our farming system shall remain
close to nomadic and fiefdom-type models of production.

Sound title lies in private ownership of land as enshrined in
the title deeds system, as opposed to state ownership, which is reflected in
the so-called 99-year lease agreement.

* Mhike is a Harare-based lawyer.


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Gono conversion imperative in curbing inflation

Zim Independent

Comment

WE do not believe Reserve Bank governor Gideon Gono's
explanation that he postponed the announcement of his monetary policy to
accommodate input from the Zanu PF people's conference and advice from the
visiting International Monetary Fund team.

Gono, who was scheduled to deliver his statement yesterday, was
quoted in the weekend papers as saying the market "should trade normally"
because there was no need for the central bank to "be rushed into conformity
without conviction ." That is to say abnormal things happen whenever he
announces his monetary policy!

He offered this statement as the reason to postpone the
announcement of the monetary policy: "It is critical that the forthcoming
monetary policy statement be reconciled not only with the budget but with
economic views, sentiments, advice and opinions from our interactions with
the IMF team arriving in the country this week as well as economic views
emanating from the forthcoming national people's conference of the ruling
Zanu PF party."

This is tantamount to saying that Finance minister Herbert
Murerwa's budget had nothing to benefit from the IMF counsel and opinions
from the Zanu PF conference. This is to suggest that Gono will continue with
his quasi-fiscal antics in the New Year to "complement" the budget. This is
despite a clear signal from Murerwa that he is keen to phase out
"quasi-fiscal operations (by the Reserve Bank) by allocating resources
through the national budget".

There is no doubt that Gono's quasi-fiscal activities have
played a major part in fuelling money supply growth and inflation. At the
beginning of the year the IMF - from whom Gono is now seeking advice and
opinions - warned that the budget deficit could be as much as 60% and not
the 3% announced by Murerwa in his budget speech at the end of last year.

The IMF attributed this high budget deficit outturn to the
allocation of resources by the central bank outside the budget. We hope the
visiting IMF team will remind Gono of this and talk him out of printing
money. The deferment of the monetary policy announcement can therefore
partly be as a result of the shock induced by Murerwa's statement.

The quasi-fiscal activities have been Gono's major source of
political power. He has become so powerful that ministers and parastatal
heads queue at his door to beg for lifelines.

To run this quasi-fiscal role, the central bank has in the last
two years set up structures to administer funds doled out to parastatals and
government departments.

This has inflated staff at the central bank where there are now
departments dealing with agriculture, procurement of capital equipment,
mining, exports, investment promotion, fuel procurement among many others.
This is virtually another little cabinet presided over by Gono as prime
minister.

The duplication of roles between departments of the central bank
and government ministries has not improved service delivery and efficiency
of state operations. It has instead given rise to uncontrolled expenditure
arising from the printing of cash to finance activities outside the national
budget.

Gono does not see anything wrong in this. He sees it as a faster
method of policy implementation and achieving economic turnaround. He sees
nothing wrong in doling out money to government departments largely through
the printing of money.

In an interview in October, Gono maintained that his fiscal
functions were within the scope of the Reserve Bank of Zimbabwe Act. He said
his interventions were meant to make Zimbabwe "a better and prosperous
economy". He said his interventions were also as a result of the "absolute
ineptitude by some officials accentuated by misplaced sectoral myopia on the
part of those entrusted with the responsibility of running with those
portfolios."

This is the problem with Gono. He sees his policies as being
superior to those of ministers hence his pursuit of quasi-fiscal activities
is likely to continue.

Murerwa's statement last week is however a major test of his
ability to control the economy and expenditure by ministries. As the
situation stands, he has very little chance against the ambitious Gono. The
governor needs a major conversion to drop his fiscal interventions and the
printing of money. We keenly await the monetary policy statement in the New
Year.


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Giving Mugabe a very long lifeline

Zim Independent

Candid Comment

By Joram Nyathi

THE opposition is fatally trapped in its fixation with President
Mugabe. It is a contradictory obsession - on the one hand they loathe
anything that involves Mugabe and on the other must daily face the painful
reality that the Mugabe phenomenon now transcends the individual. They must
face the reality that there is no legitimate way in which Zimbabwe's
festering crisis can be resolved without engaging Zanu PF and Mugabe.

I had hoped that Arthur Mutambara would avoid the trap and move
the discussion on the National Vision beyond witch-hunts and personal
accusations. He fell deep into it. Witness the trademark claims about the
bishops being used by Mugabe to "buy time" and that Mugabe "embraced the
project to destroy its credibility".

I don't know how he embraced the initiative when Mugabe was so
furious with the bishops who want his powers "circumscribed" in a new
constitution. Moreover, there is no way Mugabe could have stopped the
bishops from circulating the document - which is not the same as supporting
it. It can't be convincingly claimed that Mugabe loves the ugly evidence of
his handiwork shown to him by the bishops, no matter how "apologetically"
expressed as claimed Mutambara.

The bishops are not a political party to indulge in propaganda
about the "criminal dictatorship of Mugabe". The efficacy of that language
has been pathetic in the past seven years. And how do you promote dialogue
by fanning mutual hostility between the parties to a round table?

A major criticism of the Zimbabwe We Want document is that there
was no consultation with key stakeholders. The bishops have called for input
from everyone to plug the loopholes. The critics have unfortunately not
shown how that omission is fatal to the entire initiative, except to then
assert that it was done by Zanu PF. You would imagine that Zanu PF was so
foolish as to criticise itself for a badly executed land reform programme
when that has been its electoral plank since 2000.

In the same breath Mutambara declares that the people "will
reject any process that provides a lifeline to Mugabe's evil regime".

Mutambara has not consulted "the people" but is certain that
they are concerned more about the "process" than the outcome, that is an end
to their misery. What is the correct process and who suggested it? How
effective has it been in ending Mugabe's "evil regime"? This is no more than
a myth of political leaders calling themselves "the people". Each one of
them now wants to be approached in their little Munhumutapa offices so that
they can say "the people" have been consulted. This is despite the fact that
the bishops serve the same civil society, Zanu PF and MDC supporters in
their churches every week and should know better what they want.

The issues of political legitimacy, the economic vision and
corruption Mutambara raises are matters of emphasis. The same goes for
Gukurahundi. It depends on the constituency you want to appeal to and
whether the objective is national healing or primitive retribution. But that
is putting the cart before the horse. The weakest part of the document is
that it doesn't say how we will attain the vision. But that is where
political parties come in, for the goal is the same.

As with Murambatsvina, Project Sunrise and other abuses that
Zimbabweans have endured in recent years, the opposition has failed to
provide the leadership that they should. The churches have not said anything
out of this world. What they have done differently is to produce a document
on the missed opportunities and the Zimbabwe We Want. Above all, they have
taken an unequivocal position on the side of the people and Mugabe is
bitter. A people-focused MDC should have seized this momentum to mobilise
the people and isolate Mugabe and through force of numbers, compel him to
dialogue.

Once that is achieved it is then up to the politicians to make
sure he doesn't "buy time" or "appear to be doing something" but that he
does something or concedes failure.

The churches already have a huge constituency on both sides of
the political divide. They have openly declared that they will no longer
have their territory prescribed for them by self-seeking politicians who say
they should help only in health and education but not politics - a key
determinant of any nation's material wellbeing. Could there be a more robust
rebuke of the Establishment?

After watching from the sidelines as Zanu PF and the MDC engaged
in mutual destructive battles for supremacy, the church has stepped in to
initiate a nation-building process involving all the contestants to power.
Instead of capitalising on this, the opposition has obsessed itself with the
form rather than the substance - the "who" and not "what" of the document.
Would that substance be different had an MDC church drafted the National
Vision? That is if one believes the infantile accusation that the bishops
"want to placate or sanitise the dictatorship".

What the MDC needed to do was to tap into an already existing
groundswell of disgruntlement as evidenced by the churches to build critical
mass. Who said a majority of Zanu PF supporters are not hungry and do not
want change? But that is expecting too much from an opposition so fascinated
by Mugabe that they would rather engage in peripherals than confront the
issues that should unite them.

Mugabe is having the laugh of his life. It is the opposition,
not the bishops, who are giving him a very long lifeline. While they are
hunting for the authors of the National Vision Mugabe is laying for himself
a marble-coated pavement towards 2010. Those with eyes would have seen the
timing of agricultural equipment, the computers to schools and the rural
housing programme among many populist development initiatives ahead of the
Goromonzi people's conference.


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Living large while economy melts

Zim Independent

Editor's Memo

By Vincent Kahiya

THE central bank appears to be living a charmed life in which it
spoils itself with all the trappings of affluence while the economy is on a
rollercoaster.

What quickly comes to mind about this material comfort is not
only the inflated workforce which includes fitness trainers and other
dubious officers whose services were not required before December 2003, but
also the monetary policy statement presentations.

These are occasions when the governor wheels out volumes of
documents to demonstrate how busy he has been trying to mend the economy.
These are printed on expensive gloss paper that exclusive haute
culture magazine publishers can only dream of.

Paper does not come cheap in Zimbabwe where a tonne of shoddy
quality locally-produced newsprint now costs $1 662 326.

The Reserve Bank uses expensive imported paper. It even has the
temerity to use expensive paper to print humourless cartoon books
purportedly exposing economic saboteurs.

I do not want to believe that there is now a resident cartoonist
at the glass and mortar tower along Samora Machel Avenue. All this in the
name of economic recovery?

It can only be in Zimbabwe where a central bank cartoon book is
printed on gloss paper while the Finance ministry fails to print enough
copies of the budget statement for government ministers, parliamentarians
and the media.

Last Thursday we scrounged around looking for Finance minister
Herbert Murerwa's budget speech. There was nothing at parliament where the
PR department told me they were also looking for the speech.

This was confounding, as in the past reporters covering
parliament were handed the speech together with the "blue book" and were
also given extra copies to take back to their newsrooms.

That is all gone now. There were a handful copies of the speech
last week and none for the media which had to rely on e-copies availed by
friends in government and in business.

While there was not much in the speech itself other than the
attempt to tame Gideon Gono and the usual fictitious forecasts growth - or
is it recovery? - I was disappointed by the failure by the Finance ministry
to avail the blue book.

The book should give a detailed analysis of the performance of
the previous budget and the employment of funds by ministries. It also
provides estimates of how government would utilise resources in the coming
year.

In the past this provided an analysis of how ministries employed
state funds. Then government used to state how much it was setting aside for
individual capital projects like roads, dams and bridges. The blue book
would spell out how much the government would spend paying salaries for
civil servants, repaying loans and so on.

Debate around the budget was more informed then because there
were facts and figures to large groups of stakeholders. Advocacy groups
would articulate their disquiet over the military budget being larger than
that of health and other social services.

Perhaps it no longer makes sense to come up with detailed
expenditure estimates in an environment where the budget is exhausted in
three months, but it is prudent for the Finance ministry to show us the
performance of the previous budget, including monies doled out to ministries
under his nose by the central bank. That is accountability.

The paucity of information availed to the public on state
expenditure, especially the unavailability or very limited circulation of
the blue book, has undermined the significance of the event. It is the
figures and their justification which make up a budget speech.

Today the budget speech is being construed as an economic policy
statement hence we hear "analysts" opining that a budget speech is the
panacea to our economic woes. Zimbabwe still requires a proper economic
recovery plan under which the budget should operate. Or is it the monetary
authorities who have taken the gloss off Murerwa's budget?


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Let Mugabe name witches haunting State House

Zim Independent

Muckraker

DESPITE spirited denials by government apologists, there is more
than just smoke about the state of corruption in the country. This week it
was President Mugabe himself, that people like Nathaniel Manheru are trying
to protect, who complained about the "rottenness" at Arda.

The president was told that 400 tractors released by government
some 18 months ago had vanished. Brigadier General Douglas Nyikayaramba
allegedly told the president that the equipment, which had been put in the
custody of Arda, "had been cannibalised" or gone missing.

While the president acknowledged that "Arda yakaora karekare",
this being Zimbabwe, we can be sure nothing will be done. More bark than
bite.

We have seen more or less similar occurrences at Zisco where
those tasked with fighting corruption are in fact trying their best to make
the culprits stay farthest from the famous "wrath of the law".

Mugabe blamed the corruption on a "get-rich-quick mentality" of
which there are plenty opportunities in fuel, a murky tendering processes,
scarce basic commodities and now farming implements.

Even as Mugabe spoke, one could tell he was far from providing a
solution. Mashonaland Central governor Ephraim Masawi spoke of "confusion"
in the allocation of the recently imported farm equipment. He said his
office had been asked by the Reserve Bank to compile a list of beneficiaries
while Agribank was doing a separate one.

Deputy Youth minister Saviour Kasukuwere weighed in with a
proposal that the tractors be given to the District Development Fund.

It's called the politics of power. If nothing dramatic happens
soon, most of that equipment will either vanish or be cannibalised before it
gets to the people who desperately need it.

The president also talked about succession. He gets angry once
that subject crosses his mind. He said some politicians were consulting
spirit mediums to enhance their chances while others had been given snuff to
sprinkle at State House so that they could succeed him.

Now that's what we call witchcraft if it's true. How do they get
to State House undetected? In any case Muckraker reckons it's time we got
some names here. The game is getting really dirty.

Typically, beyond witches, Mugabe chooses to remain enigmatic
about the subject. Why the mystery about what should be in the public domain
unless he is keen to fuel unnecessary speculation and make witch doctors
rich?

Meanwhile, Nathaniel Manheru decided it was time to close the
debate on the subject which appears to also anger him but on which he
relishes dropping hints of appearing to know a lot.

Writing in his Saturday column in the Herald, Manheru said the
land reform had "straitjacketed Zimbabwe's presidency" and that President
Mugabe offered the surest security to the beneficiaries. Those people were
beholden to the president and would therefore ensure he stayed on "beyond
2008, much to the chagrin of the British and their tools here".

Many might have been aware of the machinations in Zanu PF to
prolong Mugabe's rule beyond his legal term next year. However, Manheru's
wistful anxiety betrays the fear of someone with something to hide. It may
be more than losing his piece of land once Mugabe leaves.

We hope it's nothing along the lines of Zisco or the shenanigans
at Zupco that have already landed some beneficiaries of state patronage
behind bars. Nor does Mugabe himself appear so sure about what might happen
to him should he leave the fortress of State House.

Having said that, it is only fair that we restate an immutable
law of nature - that every dawn must eventually give way to sunlight and
that Manheru's celebration will one day come to an end.

There was a report in a local daily this week that Home Affairs
minister Kembo Mohadi had attacked the judiciary over the release of
hard-core criminals from remand prison. He said he was concerned at the
"vicious cycle in which notorious armed robbers are arrested by police,
placed on remand and granted bail to rejoin the communities they terrorise"
in which they commit further crimes.

The paper said Mohadi's comments were prompted by the release on
bail "of more than 100 hard-core criminals" from Harare Central following a
tour of the facility by Judge President Rita Makarau. This was part of
efforts to decongest the holding facility, it was explained. Since then
there had been an upsurge in cases of armed robbery, carjacking and
burglary, the paper said.

We found the causal link most curious. Who is responsible for
the congestion in remand prison? More importantly, who decides who should be
released? Certainly not the judge who wouldn't tell a murderer or carjacker
from a vegetable vendor!

We hear Canadian journalists and tour operators are in the
country to sample Zimbabwe's tourism offerings. The tour, it was reported,
is being coordinated by the Zimbabwe Tourism Authority and the Zimbabwean
embassy in Canada.

ZTA chief executive officer Karikoga Kaseke said the visit was
part of "our perception management programme" which is meant "to portray a
true picture of Zimbabwe". Surely, once perception has been "managed" it can
no longer be a true portrayal of the situation.

We suspect part of that "management of the perception" will be
to ensure that the tourists are provided with abundant fuel while the whole
nation runs dry, that they have the best food while Zimbabweans starve and
that they are chauffeured along the cleanest avenues while in the townships
garbage goes for months uncollected.

But if they are true journalists they will occasionally take off
their hosts' blinkers to see the world and not allow themselves to be used
as accomplices in this perception charade.

There was a lot of noise about a similarly fashioned tour by
some 17 Russian journalists and business people a few months back so that
they could tell the "true story" of Zimbabwe.

After being feted at government's expense they returned to their
cold clime and forgot all about it. The best we saw was a little filler on
the leader page of the Herald two weeks ago.

There was a report in Saturday's Herald that President Mugabe
was concerned about unilateral price increases by retailers. He said this
was unwarranted as it caused a lot of suffering among the poor.

He however said his government had a solution - "boosting the
supply side of basic commodities and putting in place a legal framework that
would provide deterrent measures".

The first is a prerequisite of any government while the second
has never been known to work anywhere in the world. It is strange that what
is obvious is announced as a discovery and what doesn't work is prescribed
as a miracle cure for problems caused by shortages.

The Voice newspaper carried a sad story this week about one of
its lost sons. It was the story of Last "Tambaoga" Chiyangwa who earned
himself $200 000 during a show in Harare from Saviour Kasukuwere for his
"Blair toilet" tune at the height of the Third Chimurenga.

Now Tambaoga says he is broke he can't release an album he
recorded last year in April. He told The Voice he couldn't raise $5 million
to record the album.

He says he has been everywhere - except the presidency.

"The party and government have tried their best but they have
other problems to sort out, they cannot attend to Tambaoga only," remarked
the musician charitably.

"I only have money to buy my cigarettes," he said.

We were immediately reminded of what Zanu PF does to those who
no longer serve its purpose - throw them away like cigarette butts.

But all is not lost yet for Tambaoga. There is the Zanu PF
people's conference next week and another take at Tony Blair might earn him
a few Zimdollars in time for Christmas.

In its column "Last week in retrospect" The Voice reported that
Metallurgical Corporation of China had put up a US$3 billion bid for a 60%
stake in Ziscosteel in an investment deal that was set to bolster
productivity at the financially-troubled company. This was despite the fact
that the story had been categorically denied the previous week when it was
originally reported in the Herald.

Talk of the right hand not knowing what the left is doing. There
is no such windfall coming Zisco's way given the corruption that government
is trying in vain to sweep under the capacious carpet.

There was a lot of premature celebration in the media about
Finance minister Herbert Murerwa "clipping Gideon Gono's wings" for his
damaging quasi-fiscal activities.

Murerwa said these activities fuelled inflation and made the
economic turnaround that much difficult. He said in his budget statement
that from now on expenditure would have to come from the national budget.

We held our breath, wondering whether we should prepare
ourselves for an epic battle between the minister and the governor given
that the Reserve Bank has become a virtual commercial bank with limitless
resources.

Before the ink was dry President Mugabe came to our rescue.
There is no epic battle of any kind, Murerwa is a dreamer. He told
supporters in Lupane in Matabeleland North on Monday that construction of a
government office complex had been delayed because of "strict government
accounting systems where projects have to wait for budgetary allocations".

He said as a developing country under sanctions Zimbabwe could
"not rely on textbook economics" to meet its agenda.

"We can't plead the nice bookish way," he said. "I don't believe
in this nonsensical theory about quasi-fiscal activities," he said,
effectively telling Murerwa to go and hang and Gono to add fuel on the
printing press.

But why doesn't Murerwa quit? He was told as much when he tried
to launch new bearer cheques in Gono's absence. If it's any consolation to
Murerwa, at least the IMF knows where our problems are rooted.

The former George Hotel used to be a place to spend a good
Friday, listening to music or dancing. You quaffed a cold brew to your heart's
content if you had a fat wallet. Back then that was not a tall order.

The place has been renovated and houses clients of a different
order. One of them is Mweb, the Internet service provider.

For some strange reason the place has changed its name to
PaSangano, which sounds close to MuSangano where nothing useful ever
happens. Since moving to their new place of abode Mweb have been a disaster.
They have even started avoiding answering queries from clients about poor
Internet service.

Is it because of the MuSangano culture or have they been
sniffing some fermented stuff from the cellars of old George Hotel?

Some nasty things about people are safer said from a distance.
Apparently President Mugabe is not immune to fear. He had to travel to far
away Mashonaland Central in Musana to complain against sisters who go around
making babies that they can't look after.

"Vazukuru vanouya nevasikana vachizotora mazita edu," he
complained. "Hauchaziva vako veropa chaiwo ndevapi. Mangwana panhaka
vachadawo nekuti vanenge vakarerwa pamwe nevana vedu. Tave kukanganisa
rudzi."

Can somebody kindly explain? Somebody said it had something to
do with a woman who shares parliament with a son who uses Mugabe's surname
and now wants to take the crown from Robert Jr.


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Budget facts and myths

Zim Independent

By Eric Bloch

LAST week's presentation by the Minister of Finance, Herbert
Murerwa, of Zimbabwe's 2007 Budget, was yet another masterful demonstration
of government's immense prowess at presenting myths as facts, applying those
mythical facts to policy formulation doomed to fail, due to the lack of
foundation, and total disregard for unpalatable realities.

It boggles the mind to understand how a person with such proven,
unquestionable, intellect as the minister can enunciate so much as is devoid
of factuality, and to do so with an impression of total authority.

One must assume that either absolute loyalty to a misguided and
inept government, or to a staff myopically unaware of the real circumstances
of the Zimbabwean economy, repeatedly blinds the minister's intellect to the
genuine circumstances impacting upon the economy, and lowering it ever
further.

Admittedly, the minister did recognise that the economy's
distress continues to worsen. He acknowledged that the economic "challenges"
include ever-increasing prices, continued distortions in the pricing of key
commodities and utilities, unemployment and rising poverty levels, foreign
exchange shortages, low industrial capacity utilisation underutilised
allocated land, inadequate measures to deal with rising levels of corruption
in both public and private sectors, deteriorating provision of basic public
services, from maintenance of infrastructure, inconsistency of policy
pronouncements, and declining clarity over the role and accountability of
the key institutions of government.

In particular, he noted that "one of the consequences is of the
lowest paid workers earning below the poverty datum line", and that "the
deterioration in the welfare of our people has seen their capacity to access
basic healthcare services, education, housing and other amenities collapse
overnight, under the prevailing hyper-inflationary environment".

However, whilst having realistic recognition of the distraught
state of the economy, not only was there no demonstration of like realism in
identifying the causes of the state, but there was also no credible veracity
to the expectations of reversal and recovery. Once again, government denies
all liability for causing the economic morass.

Instead, once again it trotted out the specious contention that
the cause is that "the country remains under siege, facing sanctions from
the West, characterised by lack of balance of payments support, lines of
credit, foreign direct investment and deliberate efforts to undermine our
economic turnaround initiatives."

What unadulterated hogwash! No country has legislated a
prohibition upon investment in Zimbabwe, but who wishes to invest in a
country which is authoritarian instead of democratic, has no respect for law
and order, contemptuously disregards human rights, excessively regulates its
derelict economy (to the extent of harsh imprisonment of business directors
whose crime was to try to ensure the survival and viability of their
businesses, and availability of bread for the populace), alienates the
international community, overrides property rights, mismanages government,
and does nothing to contain corruption or curb state expenditure, but fuels
endless inflation?

In like manner, which banker will advance lines of credit to a
country (or any other borrower) that has extensively defaulted in debt
servicing, and whose circumstances are such that continuing default is
virtually inevitable. Yes, the USA's Zimbabwe Democracy Act precludes that
country supporting any provision of funding by the International Monetary
Fund (IMF) to Zimbabwe, but in practice there is, in any event, no
possibility of such funding for so long as Zimbabwe continues to have all
the characteristics of a delinquent, high-risk, borrower, so there is no
effective sanction.

And, far from seeking to undermine Zimbabwe's economic
turnaround activities, the world at large continues to support Zimbabwe. The
European Union buys more goods from Zimbabwe than it sells to Zimbabwe. So
too does the United States!

Zimbabwe has a significant favourable trade balance with both
the EU and USA. If they wished to prevent economic turnaround, they would
not engage in trade favourable to Zimbabwe. It is incontrovertible that
foreign direct investment (FDI), balance of payments support, and lines of
credit, would accord some relief to the aforesaid state of the economy, but
their absence is not the reason for that state and, unless the causes are
clearly identified, and constructively addressed, the long-desired economic
turnaround must remain a mirage.

Unfortunately, there is no evidence of any will, on the part of
government, to identify such causes, let alone to try to address them.
Instead, government compounds its destructive delusions by relying upon
unattainable economic developments to bring about the economic recovery.

The minister foreshadows an economic upturn on the back of
agriculture, which he expects will surge upwards as a result of timeous
availability of inputs, and facilitated by access to capital by virtue of
the issue of 99-year leases. However, he disregards that only some of the
required inputs have been timeously received, many of those received have
not been productively used, but have been onsold into other economic sectors
(such as diesel and petrol, supplied by Noczim at nominal prices, and sold
on the black market at five or more times such prices), and the leases are a
farce which accord no collateral value.

Not only have very few leases actually been issued (275 in
all!), but the extent to which the State has retained powers of termination,
and the non-transferability of the leases without restriction, renders the
leases meaningless as security for borrowings. Those factors, the extent to
which agricultural lands have not been prepared, and the absence of
substantive planting, makes it irrefutable that any increase in agricultural
production in 2006/7 will be minimal.

However, the minister has not pinned his hopes exclusively upon
agriculture. He informed Parliament that "polices to improve viability in
the mining sector will be vigorously pursued by government. This should
support the revival of mining production". But he made this statement at the
very time that mining viability is being destroyed by maintenance of an
unrealistic exchange rate, and by inordinately delayed payouts to gold
producers for their gold deliveries. It is also at a time when government
endlessly speaks of intended economic empowerment legislation so draconian
as to deter any investment into the mining sector.

Tourism is yet another sector upon which the Minister focused
for economic recovery. His positive prognostications were founded upon a 45%
growth in tourist arrivals during the period to September, 2006 over the
same period in 2005. Disregarded, however, was that much of that growth in
arrivals was represented by cross-border traders, by day-trippers residing
at luxurious hotels on the Zambian side of the Zambezi River, and by
back-packers, none of whom provide any significant economic benefit to
Zimbabwe.

Yet a further source of economic development will, according to
the minister, be FDI. Commendably, he said that "in order to attract and
give confidence to foreign investors, government is fully committed to
honouring all its international obligations under various protocols and
international agreements, including the Bilateral Investment Promotion &
Protection Agreements (Bippas)."

Unfortunately, the minister then digressed from his prepared
speech, by adding that compliance with Bippas will be determined "on a case
by case basis". No potential international investor will glean comfort from
the existence of agreements which will only be selectively honoured at the
whim of government.


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Zim Independent Letters



Budget: a typical example of Zim's hopelessness

WHEREAS budget statements are meant to confirm and take forward
the nation's commitment to prioritise and protect expenditures that can
substantially contribute to economic growth, job creation, and overall
poverty reduction, to also contain measures to improve service delivery and
strengthen public expenditure management, the hopelessness of Zimbabwe's
entire budget exercise and process, in this environment, is again
exemplified by the Minister of Finance's 2007 budget statement.

If the minister cannot predict the level of public expenditure
next month, how then does he intend to predict a whole year, expenditure
pattern? Bids by the ministries make no sense whatsoever, with or without
Gideon Gono's quasi-fiscal expenditure forays.

So no matter what the Minister of Finance pronounces within the
framework of the 2007 budget, by omission or commission, his action will
lead to more misery and further unprecedented economic decline. This will be
the ninth successive decline in GDP since 1998.

Is this what the minister's budget is about, or he is just
taking the people of Zimbabwe for a ride? If we judge by the way the economy
will go, the minister should concede that his budget is not a good omen.

He should retract and address the country's fundamentals - stop
corruption, restore the rule of law and confidence of the investor in the
economy - before presenting what the official press will obviously call a
bold budget statement.

The only hint at reducing inflation worth noting was limiting
Gono quasi-fiscal forays.

The nation is being told that this will bring inflation down to
350-400% by October 2007. But with all the economic fundamentals that
brought about the high inflation in place, inflation is unlikely to come
down.

The allocations and estimates given by the minister will
continue to be eroded by inflationary pressures, mainly due to lack of
production and continued growth of expenditure by this government's bloated
administration.

In the view of the MDC the fundamentals that require attention
in order to halt the collapse of the Zimbabwe economy are:

* Government must stop denying the causes of the country's
economic problem and come to terms with itself and seek dialogue with the
people of this country;

* Engage the people of Zimbabwe (the civil society, business,
farmers, workers, churches) on fiscal policy, development of the economy and
democratic rights of citizens;

* Move away from the position of sustained macroeconomic
mismanagement and adopt sound macroeconomic policies aimed at curbing
inflation and laying the foundation for economic recovery;

* Refrain from bad governance, asset-stripping, corruption and
looting of state-owned enterprises and assets and engage the nation towards
achieving the millennium development goals in order to reduce poverty; and

* Stop all forms of disruptions to normal economic activities
and show commitment to transparency, accountability, respect for human
rights and democratic processes.

Any budget speech that ignores this framework continues to be
self-delusion and a joke for the people whose pain deepens especially
immediately as a result of tinkering at the edges of a sick Zimbabwe
economic body in national budget statements.

Priscilla Misihairabwi-Mushonga,

Deputy secretary general - MDC.

      -----------
      What term would be ideal for this bungling regime?

      By RES Cook

      "WHAT the accused persons did brought undue hardship to
the masses of Zimbabwe," said Harare magistrate Faith Mushore when she
sentenced two senior executives of Lobels Bakery to an effective four months
in prison.

      What was their heinous crime deserving of such a reprimand
and punishment? Raising the price of a loaf of bread from $185 to $300
without government permission!

      Will the hitherto gutless so-called "captains of industry"
now be prepared to stand up and denounce the regime that has destroyed the
business environment and is now prepared to jail business executives for
trying to survive? Don't count on it.

      It is several years since I first mentioned Pastor
Neimoller's famous saying about Hitler's Nazis: "They first came for the
communists and I didn't speak up because I wasn't a communist. Then they
came for the Jews, etc."

      Re-writing Pastor Neimoller's statement to fit the
Zimbabwean situation involves constant updating from the Ndebeles in the
early 1980s to the latest targets of Zanu PF in 2006 - the business
executives.

      A pity that Zimbabweans who have so far escaped the net
still simplistically believe that they can continue to survive by their
silent acceptance of and acquiescence in the destruction and oppression that
is all around them.

      They would do well to heed the final words of Pastor
Neimoller's statement: "Then they came for me - and by that time no one was
left to speak up."

      However, the imprisonment of the Lobels executives may
offer a glimmer of hope for those struggling to bring about peaceful change
in Zimbabwe.

      If "bringing undue hardship to the masses of Zimbabwe" is
a criminal offence worthy of jail time, then I would respectfully suggest
that the learned magistrate has suggested a solution to Zimbabwe's biggest
"challenge" (that of removing this regime from office).

      The only problem might be in determining appropriate
sentences.

      If raising the price of a loaf of bread by $115 is
deserving of four months' imprisonment, what would be an appropriate
sentence for the wholesale destruction of the economy?

      * RES Cook writes from Harare.

-----------
            Unity agenda, issues of substance should inform
discourse on succession

            YOUR article "Nkomo's presidential ambitions rattle
rivals", (Zimbabwe Independent, December 1) spoke to a very topical issue
and deserves comment.

            Nkomo's candidature for the presidency is the most
refreshing development since the Unity Accord of December 1987 between Zanu
PF and PF Zapu. Undoubtedly, it stirred a hornet's nest because it forced
people to think outside the box - the tribal mindset.

            It challenges conventional wisdom that seems to
confine former PF Zapu stalwarts to the vice-presidency in the context of
the succession debate. Unfortunately, reduced to its bare minimum, this
mindset seems to suggest that a Ndebele can only dream of being the
vice-president of Zimbabwe, the presidency is out of bounds.

            In short, to these tribalists it is sacrilegious for
a former PF Zapu or Ndebele to think of being at the pinnacle of any
strategic state institution. This tribal mindset seems to inform
appointments to key positions in government and parastatals.

            As is the norm, there is nothing wrong with an
all-Shona senior management team at the GMB or Arda, but can we imagine an
all-Ndebele team at the helm of Tel*One or the NRZ?

            I am sure a "tribal" audit of the key managers in
our key institutions would produce damning results in this regard.

            Another fallacy that is being peddled without
challenge is that the Unity Accord between Zanu PF and PF Zapu brought unity
between the Shona and the Ndebele. As far as I know, PF Zapu's membership
had the widest tribal spread and mix compared to Zanu PF's. In essence, the
majority of Ndebele were PF Zapu supporters whilst the majority of PF Zapu
supporters were Shona, given the population patterns of our tribal groups. I
am sure the results of the 1980 elections clearly underlined this fact.

            It is also a historical fact, despite efforts to
expunge that from our memories, that Mashonaland West was Zipra's key
operational theatre during our liberation struggle due to its proximity to
the Zambian border. I leave to anybody's imagination as to who in the past,
present and future, have benefited and stand to benefit from playing the
tribal card at the expense of the nation-building project.

            The article indicated that Nkomo's candidature had
provoked "mixed feelings" among political analysts but went on to solicit
comments coincidentally only from those who seemed hostile to his
candidature.

            The comments by John Makumbe and Ibbo Mandaza should
be viewed in the context of their well-documented rabidly anti-PF Zapu and
robustly pro-Zanu PF postures prior to the Unity Accord, and we do not blame
them for that.

             However, in this connection, it is pertinent to
observe that Mandaza was "tormentor-in-chief" of Zapu cadres during his
stint as director of manpower planning in the early years of Independence.

             Jabulani Sibanda's acrimonious dismissal from Zanu
PF and his renegade tendencies are too fresh to escape the people's
attention while Max Mkandla's Zimbabwe Liberators Peace Initiative is known
for its parochial and anti-unity agenda. Would you therefore expect positive
comment from such interested parties who have an axe to grind?

            It is interesting to note how they focused on Nkomo's
persona and totally ignored the symbolism that his candidature represents.
It has definitely upset the status quo in the context of the broader body
politic - a former PF Zapu member and Ndebele thinking of being president of
Zimbabwe! This is anathema and unacceptable to adherents of village
politics. Zimbabwe begins in their village and ends at Shangani. He has to
be punished for thinking the unthinkable!

            We salute Nkomo for refusing to be intimidated and
rejecting to be rendered a second-class citizen in his own country that he
fought for with distinction. True to his patriotic credentials, his
candidature confirms that we are all Zimbabweans and equal.

            To suggest that Nkomo, a well-known freedom fighter
who joined the liberation struggle in the 1950s and was co-secretary for
adminstration of the ANC (1974-75) with the late Simon Muzenda, is less
known than Amai Joice Mujuru who joined the liberation struggle in 1973, is
disingenuous and exposes the reactionary nature of this postulation.

            While it is acknowledged that the late Eddison
Zvobgo was one of the finest legal brains in the country, to suggest that he
had more national stature than Nkomo is also mischievous and illogical.

            Are we not again witnessing frantic attempts to
rewrite history in the mould of past and present futile machinations to
marginalise or obliterate PF Zapu's and Zipra's role in the liberation
struggle? Are not these the same old people who accused Zvobgo of being a
die-hard Karanga tribalist after he had made known his intention to ascend
to the presidency?

            To further suggest that Nkomo does not have "the
capacity to marshal support in Zimbabwe" and lacks the political stature of
other national leaders is ample testimony of unfettered hostility not
buttressed by substance. Who are these "national leaders" being referred to
here?

            Nkomo was elected Zanu PF national chairman in 1999
and was re-elected at the 2004 congress, winning against a formidable
opposition.

            Which elections did Nkomo lose in 2000? Nkomo did
not stand in the 2000 and 2005 parliamentary elections, arguing that as Zanu
PF national chairman, he would not confine himself to a single constituency.

            Makumbe further stated that Nkomo "has not
demonstrated a capacity to run bigger thins than parliament and he does not
have the capacity to mobilise support in Zimbabwe".

            Who else in the running for the presidency ran
bigger things than parliament, a critical organ of the state? Nkomo's
administrative capabilities date back to the liberation struggle. He was in
the leadership of the liberation movement as opposed to some of his fellow
contenders who were either students or ordinary soldiers.

            Makumbe's outburst is unhelpful and only serves to
expose his dislike for Nkomo and what he stands for.

            Since when did closeness to President Mugabe become
a liability in the context of Zanu PF politics and the succession issue?
Recently, we were made to believe that Emmerson Mnangagwa was a front-
runner because he was President Mugabe's blue-eyed boy. Currently, Amai
Mujuru is touted as a definite winner because she is Mugabe's anointed
successor.

            Closeness to Mugabe is only injurious to Nkomo in
this game! Furthermore, we are told that Nkomo (a Ndebele) is related to
Mugabe, (a Zezuru) and on the other hand we are told that Zezurus would not
countenance a Ndebele president. The confusion is total but the message is
clear - non-Shonas should be mere spectators whilst the destiny of this
country is being decided. Nkomo is an unwelcome gatecrasher! What are we
telling our children? Are we sure that this route is sustainable in the
long-term?

            All progressive Zimbabweans hope that issues of
substance and the agenda for national unity and cohesion will inform
discourse on the succession debate. We are all Zimbabweans and hold supreme
the ideals that guided our struggle for freedom and Independence. Go! Nkomo!
Go!

            Joel Knox Matara,

            Bindura.

       -----------
                  Sack them

                  I DON'T think the committee which is being set
up to investigate Industry & International Trade minister Obert Mpofu will
be impartial.

                  All we know is that the chairperson of the
committee will be a Zanu PF member and the majority of the members from Zanu
PF.

                  What we don't know is whether Mpofu was forced
to withdraw his statements by the presidium because it was going to expose
corruption endemic in Zanu PF as a whole or not.

                  If South Africa's former deputy president was
sacked for being involved in corrupt dealings, why can't we do the same in
our beloved Zimbabwe?

                   Lovemore Maseko,

                  Durban, South Africa.

             -----------
                    Why the infantile reaction?

                    WHY do the MDC MPs react with such
"juvenility" on certain issues? "Mpofu has case: Nkomo", (Zimbabwe
Independent, December 1).

                    We had Job Sikhala jumping around shouting
"Obert wasviba, aenda uyu, you are gone shamwari" when the case against
Industry & International Trade minister Obert Mpofu on alleged contempt of
parliament was brought to parliament last week.

                    It is apparent Sikhala has yet to learn that
these things have happened before and nothing has come of them.

                    We need leaders who are able to control
themselves and not rejoice at the slightest glimmer when eventually nothing
comes of it.

                    This has been a major weakness of the
opposition - the naivety to believe that Zanu PF will allow one of its own
to sink. Mark my words, something will happen, and Mpofu's case will not be
treated the way Roy Bennett's was treated. Where will Sikhala and his
premature elation be?

                    The same applies to Sikhala's erstwhile
leader, Morgan Tsvangirai, who is prone to make promises that lead to
nothing eventually. Perhaps we should rejoice with Sikhala now rather than
hold our breath. We can look back at the good time we had anticipating that
which never was or will be.

                     Chipikiri,

                    angelesles@yahoo.co.uk

                     ---------

                    Please help tar this road

                    IT is disheartening that after 25 years of
Independence stakeholders are failing to tar the 22km stretch of road left
to reach Rupike Irrigation Scheme South of Masvingo to enable some 200
farmers to deliver their produce.

                     Recently, the GMB failed to ferry 30 000
tonnes of wheat due to the poor state of the road.

                    Could all the stakeholders come together to
complete the road from Mashate to Rupike South, just 8km from Renco Mine.

                    Our MP is indeed trying his best on other
projects but on this one nothing much seems to be happening.

                    We thank Renco Mine for the dam they
constructed for the community and also urge them to give a hand on this
project.

                     Mutamba Nzou,

                    Rupike Irrigation Scheme.

                     -------------
                    Sequel to Huni's article eagerly awaited

                    THE article by Munyaradzi Huni, "Who said it's
all doom and gloom in Zim?" (the Sunday Mail, December 3) was all about the
ostentatious and obscene levels of "conspicuous consumption" by Zimbabwe's
nouveau riche. A level of conspicuous consumption that clearly requires
access to significant amounts of forex.

                    We see evidence of it every day on our
roads - the ubiquitous Mercedes, the commonplace petrol-guzzling SUVs, etc.
In drawing attention to this now prominent feature of the utopia ushered in
by a ruling party once committed to building a socialist egalitarian
society, I cannot decide if Huni is being subversive or merely subservient.

                    However, the beginning and end of his
article offered hope that a more significant article might yet be in the
pipeline - an article focusing on how all this wealth has been acquired -
and possibly by whom.

                    The article began: "For a moment, let's turn
a blind eye to the source of the money," and ended with the question: "Where
are these people getting all this money?"

                    Many years ago the American gangster Al
Capone, despite a life-time devoted to criminal activities, was eventually
arrested and jailed for tax evasion. Perhaps in some future Zimbabwe these
"fat cats" (an appropriate term given the levels of obesity among many
members of our kleptocracy) might be found to have the same Achilles heel as
Al Capone.

                    Huni's next article, answering the question
he himself has asked, is eagerly awaited. If he fails us, perhaps the
Zimbabwe Independent could oblige. Such an expose would certainly make for a
more entertaining read than another Eric Bloch analysis of government's
economic policies.

                    Everett Scott,

                    Harare.


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Massive gvt debt stifles Bulawayo growth

zimbabwejournalists.com

      By Ian Nhuka in Bulawayo

      THE debt-ridden government owes Bulawayo City Council a staggering
$489 million ($489 billion in old currency); a situation which councillors
say has further weakened the local authority's capacity to deliver decent
services.

      More than $216 million owed by the State represents overdue debt, as
the government struggles to meet its obligations.

      According to the local authority's latest minutes, the government,
which has failed to service its debts with a number of local and foreign
organisations including the International Monetary Fund (IMF), owes almost
half of the local authority's total money owing of about $1,2 billion.

      The huge debt reflects unpaid delivery services, rates and
supplementary charges.
      According to the minutes, service debtors, excluding the government
owed the council $770 million as of 31 August while Government departments
owed the council $489 million.

      The bulk of the Government debt is for water, sewerage and solid waste
management.
      More than half of the outstanding debt owed by non-government service
debtors was for water charges, as it accounted for $552 million.

      Outstanding rates and supplementary charges amount to $84 million
while outstanding sewerage charges are $71 million. The council is owed $29
million for refuse removal and $15 million for interest on overdue accounts.

      The minutes read in part: "Of the total amount owed by government for
water, sewerage and solid waste management ($305,8 million), $89,7 million
represented current debt for August 2006 and the remainder, $216 million
represented over due debt."

      A local councillor said it is ironic that the Minister of Local
      Government, Public Works and Urban Development, Ignatius Chombo
regularly castigates local authorities for poor service delivery, yet the
government is worsening the situation by not clearing its debt with Bulawayo
City Council.

      "It is hypocritical for him (Chombo) to say so about us when we have
funds locked up somewhere.  How do we provide decent services when we have
$1 billion out there?" said the councillor, who refused to be named.

      At one point this year, Bulawayo City Council threatened to disconnect
water supplies to government offices, but the decision was rescinded after
the government paid part of the debt. In addition to its rising domestic
debt, the government has struggled to meet its obligations with some
creditors and investment partners abroad including some Chinese firms, which
generally offer more flexible payment schedules.

      Its debt to the IMF nearly resulted in the country's expulsion from
the fund.
      However, between September last year and February this year, Zimbabwe
paid
      US$145 million to the IMF to clear the critical General Resources
Account, to avert a looming expulsion from the Bretton Woods institution.

      It however remains indebted to the IMF's Poverty Reduction and Growth
Facility, which it promised to pay up by the end of this year. In total,
Zimbabwe has accrued a total of US$2.2 billion in arrears; US$127 million of
which was due to the IMF by the end of October.


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Murambatsvina victims continue to suffer 18 months on

Zimbabwejournalists.com

      By a Correspondent

      HARARE - THE Zimbabwe Human Rights NGO Forum says the international
community has not been doing enough to make sure the Zanu PF government does
not ignore recommendations drawn up by the United Nations following its
brutal campaign to demolish urban dwellings after the 2005 parliamentary
elections.

      UN's Special Envoy Anna Tibaijuka, in a report released after a visit
to Zimbabwe to see the damage done by Operation Murambatsvina, said the
demolition of thousands of dwellings and makeshift stalls was a
``catastrophe'' which had robbed 700,000 people of their homes and
livelihoods.

      Kofi Annan's envoy made 12 recommendations which included the need to
prosecute those responsible for destroying people's homes and businesses, a
proper reconstruction programme and compensation for victims. She also
recommended that the Zimbabwe authorities facilitate humanitarian
operations.

      The NGO Forum said none of this has happened with the establishment
obstructing humanitarian aid; the official reconstruction programme is a
``complete fiasco'' riddled with corruption and nepotism; hundreds of
thousands continue to live in deplorable conditions in camps; and evictions
have continued 18 months down the line.

      In a report entitled "Political Repression disguised as Civic
Mindedness: Operation Murambatsvina One Year Later" which it published on 30
November 2006, said: ``It can legitimately be asked of the international
community, how long will it accept that this is the behaviour of a
responsible member of the community of nations?'' the Forum said. ``And,
furthermore, what action of the Zimbabwe government will finally invoke the
doctrine of the Responsibility to Protect imposed on the international
community?''

      The Forum, in a 45-page audit of events since the so-called Operation
Murambatsvina or Operation Clean Up Filth, urged international action over
the Mugabe government's long record of disregarding international
conventions.  Zimbabwe must be discussed at the UN Security Council, it
added.

      The Zimbabwe government's argument that the operation was for the
benefit of the people is shown to be false, said the report. The informal
sector remains as it is, corruption has increased at all levels, there is no
meaningful rehousing, and the economy has worsened.

      But, said the Forum, if the real motive was to suppress opposition,
then it had succeeded by making it more difficult to organise
anti-government protests.

      ``For the ordinary Zimbabwean, it matters little whether the Zimbabwe
government is malevolent or incompetent, or both; all that they can look
forward to is a life of extreme hardship, and the certainty that any
complaint about their lot will be met with brutal repression and denial from
a government that few believe has a legitimate right to be in power,'' the
report said

      The Zimbabwe Human Rights NGO Forum is a coalition of 16 human rights
NGOs working towards the elimination of organised violence and torture in
Zimbabwe.

      Meanwhile the government is being sued by its own councillors in
Chegutu for loss of property and income during the operation that saw
thousands trekking back to their rural homes with little or nothing to
account for the time they had been working in the cities.

      The two councillors, Phenias Mariyapera and Mubaiwa Chikazhe, are both
from Chegutu and are suing both their local authority and the government.


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Pitfalls and promise seen in China's Africa embrace

Reuters

Thu 7 Dec 2006 7:32 PM ET
By Paul Eckert, Asia Correspondent

WASHINGTON, Dec 7 (Reuters) - China's aggressive courtship of Africa can
benefit that poor continent, but shady Chinese businessmen and
no-questions-asked aid policies could backfire, on Beijing, U.S. and African
experts said on Thursday.

Chinese aid policies in Africa have drawn criticism from some Western aid
donors who say Beijing is undermining global efforts to foster reforms and
good governance and supporting brutal governments in states such as Sudan or
Zimbabwe.

A delegation of U.S. and African experts who visited China late last month
to discuss the different approaches to Africa endorsed those concerns,
urging Western countries to engage China on the issue of aid and governance.

"There is a need for a more strategic approach by the United States if a
costly and damaging and unnecessary U.S.-China clash is to be avoided," said
Stephen Morrison, head of the Africa Program at the Center for Strategic and
International Studies, a Washington think tank.

In a preview of a CSIS study on China-Africa relations, the delegation also
warned China against naivete or undue optimism about the troubled continent
and China's role there.

"There are certainly some grounds for Chinese colleagues to feel so sanguine
about the naturalness of the partnership," said Akwe Amasu, a Nigerian-born
senior policy analyst for Africa at the Open Society Institute.

"On the other hand, the appreciation certainly has limits," she said,
referring to recent anti-China political sentiment in Zambia's presidential
election and grumbling elsewhere about counterfeiting, dumping and other
business practices.

She said China needed to go beyond its preferred approach of strictly
government-to-government relations and cultivate ties with African civil
society to avoid troubles.

Africa business adviser Anthony Carroll said he warned Chinese officials
about "bad actors and trade practices that affect China's reputation,"
including a flood of counterfeit medicine and fake ethnic African textiles
from China.

The fakes added to threats to African garment industries from low-cost
Chinese clothing that had captured local market share as well as markets in
rich countries, he said.

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