Reuters
Fri
Feb 2, 2007 5:45 PM GMT
By Ingrid Melander
BRUSSELS (Reuters) -
The European Union is set to extend sanctions on
Zimbabwe for another year
including an arms embargo, travel ban and asset
freeze on President Robert
Mugabe and other top officials, EU diplomats said
on Friday.
The
27-member bloc, which accuses Harare of widespread human rights
violations,
plans to go ahead with the move despite the risk that the travel
ban on
Mugabe could again scupper longstanding plans for an EU-Africa
summit, they
added.
The list of visa bans and freezing of assets includes more than a
hundred
ministers and officials. The EU accuses them of human rights
violations, and
violations of freedom of speech and assembly in
Zimbabwe.
"They will be prolonged for another year," an EU diplomat said
of existing
sanctions due to expire on February 20.
"Every year the
European Commission does a report on the situation in
Zimbabwe, it has not
changed so the conclusions are the same," said an
official at the EU
executive.
The sanctions were initially triggered by the controversial
distribution of
white-owned commercial farms to mainly landless blacks and
Mugabe's disputed
re-election in 2002.
Critics say the seizures have
destroyed Zimbabwe's economy, turning the
country from a regional
agricultural leader to a nation barely able to feed
itself amid a deepening
crisis marked by food and fuel shortages and
inflation above 1,200
percent.
Mugabe says the sanctions are responsible for Zimbabwe's
economic crisis and
he says his land policy was necessary because former
colonial power Britain
did not make good on promises at the time of
Zimbabwe's independence in
1980.
Eldred Masunungure, chairman at
University of Zimbabwe's Political Science
Department, said the EU sanctions
have failed to reach their objective and
have if anything hit the population
of Zimbabwe.
"I think the sanctions by their very nature are a blunt
instrument and their
impact tends to spread beyond the target persons,"
Masunungure said.
"On the government's side they have been felt but as
you can see Mugabe has
not changed his policies."
Plans for an
EU-Africa Summit have been on hold since 2003 because Britain
and several
other EU countries refused to attend if Mugabe was invited,
while African
states refused to attend if he was not invited, diplomats
noted on
Friday.
"The big issue of course is how to organise this summit," one
said, adding
that the EU may try to convince Zimbabwe and other African
countries that
Zimbabwe be represented at that summit by a senior official
who is not on
the embargo list.
"We will need good political will and
some imagination," another said,
noting that Britain and possibly other
countries would oppose to a temporary
lift of the visa ban to allow Mugabe
to come to an EU-Africa Summit.
EUobserver
02.02.2007 - 09:26 CET | By Lucia Kubosova
With EU member states
planning to update sanctions against the authoritarian
government of
Zimbabwean president Robert Mugabe, France and Portugal are
considering
whether to use loopholes in the EU travel ban and invite him to
key
summits.
The EU is on 20 February expected to formally prolong the five
year long
sanctions against the African country - first put in place in 2002
after
European observers were not allowed to watch over dubious Zimbabwean
elections.
The measures restrict the travel of 72 Zimbabwean
government officials and
people close to them, including president Mugabe
himself, in retaliation for
human rights abuses in the country.
But
specific exemptions form the rule already allowed the French president
Jacques Chirac to host Mr Mugabe in February 2003 at a France-Africa summit,
and Italy to let the Zimbabwean leader visit the funeral of Pope John Paul
II in April 2005.
According to UK daily the Guardian, Paris is again
considering inviting Mr
Mugabe to a France-Africa summit taking place in
Cannes on 14 February, with
a French official telling the daily "The
invitations are still being sent.
The list will be published only
later."
Portugal - set to chair the EU for six months from July - is
considering a
similar move, according to the newspaper. But this would
involve the whole
27-member bloc as Lisbon plans to organise a major
EU-Africa summit as a key
event during its presidency.
The idea is
controversial not only because of strong opposition within
Europe -
particularly in the UK - but also as it could lead to other African
leaders,
mainly from South Africa, boycotting the meetings.
Robert Mugabe has been
in power in Zimbabwe since the country's independence
in 1980.
Mail and Guardian
Harare, Zimbabwe
02 February 2007
03:30
Zimbabwe's remaining white farmers were anxious on
Friday ahead
of a February 3 deadline for many to leave their farms, a
farming official
said.
Many of the more than 400 whites
still farming out of an
original 4 500-strong community have been given
until Saturday to vacate
their farms to make way for new black
farmers.
In early January, President Robert Mugabe's
government said
white farmers would be allowed to stay on their farms for an
extended period
to harvest their crops.
But the
government has continued to send out 45-day eviction
notices that expire on
Saturday, leaving farmers confused and anxious about
their rights, said
Emily Crookes, spokesperson for the white-run Commercial
Farmers' Union
(CFU) said.
The Lands Ministry has continued to issue
eviction notices
around the country, Crookes told the media in a telephone
interview.
"At least 30 eviction notices have already been
issued to
farmers this year, 24 of them to landowners in the southern
Chiredzi
district," she said.
"Farmers are anxious out
there because they're not sure which
way this is going to turn," Crookes
said. "We're hoping it will be calm."
Farmers in Chiredzi are
hopeful the government will abide by its
promise to allow them to harvest
their crop.
Zimbabwe Cane Farmers' Association chief
executive Stephen
Schwarer said in a telephone interview from Chiredzi that
farmers in his
area were not anticipating trouble on
Saturday.
"We're assuming there's a stay of execution," said
Schwarer,
whose association represents 200 black and 50 white cane
farmers.
"There's no indication there will be any trouble or
pressure for
us to leave this weekend," he said.
In 2000,
Mugabe's government launched a controversial programme
of farm seizures,
accusing white farmers of supporting the fledgling
opposition Movement for
Democratic Change party, which almost defeated
Mugabe's ruling Zanu-PF in
general elections that year.
Last week, Lands and Security
Minister Didymus Mutasa said only
farmers who had shown goodwill towards
Mugabe's government would be allowed
to continue farming.
He also warned white farmers that the government had teeth and
would use
them to bite those who resisted the takeover of their
properties.
Zimbabwe, once dubbed the breadbasket of Southern
Africa, now
has to import food to feed its population of nearly 12-million
people.
There has been a massive decline in agricultural
output, once
the mainstay of the economy, as many of the new black farmers
lack capital
or experience to maintain production levels. --
Sapa-dpa
Email: jag@mango.zw : justiceforagriculture@zol.co.zw
JAG
Hotlines: 011 610 073, 091 233 415. If you are in trouble or need
advice,
please don't hesitate to contact us - we're here to
help!
------------------------------------------------------------------------------
For
those farmers still in-Sutu on their farms (productive or otherwise),
most of
whom will fall under the 45-day eviction period as prescribed under
the
Gazetted Farms (Consequential Provisions) Act: the 45-day period,
which
commenced on 20th December 2006, expires tomorrow - Saturday 3rd
February
2007.
Some months ago, Minister Mutes, way ahead of the
promulgation of this
legislation, commenced the issuance of 'Eviction
Notices' to vulnerable
farmers. To date, approximately 150 of these
so-called 'Eviction Notices'
have been delivered to farmers countrywide.
Even prior to the legal clock
ticking on 20th December 2006, many farmers had
come under intense eviction
pressure. This pressure has continued to
intensify and nearly 50 farmers
have been forcibly and illegally evicted to
date.
Unfortunately, some farmers, intimidated by this legislation, saw
fit to
voluntarily comply - which we have advocated strongly against, in that
this
is tantamount to an admission of guilt for being rightfully on one's
farm.
We have strongly advised that in-situ farmers should remain on their
farms
and face arrest and possible prosecution. This is the only way that
a
farmer can effectively resuscitate his day in Court and with it, a chance
of
a fair hearing. Obviously and fortunately, these matters can not
be
progressed at District Magistrate's Court level because of the values
of
property involved and, as such, must be referred up to the High Court.
In
the High Court one is likely to be treated more fairly, especially in
the
light of judicious publicity. Bail conditions, therefore, seem likely to
be
the order of the day.
It is important to note that 'Eviction
Notices' served on farmers to date by
the Minister, via the Ministry, are not
competent eviction notices.
Fortunately, only a competent court, in this case
the High Court, can issue
a competent Eviction Notice and only then on the
basis of a conviction.
THERE CAN BE NO LEGAL EVICTION WITHOUT CONVICTION, IN
A COMPETENT COURT.
It is the Trust's contention that - in the light of
recent events and
illegal eviction pressure over the past few months, way
ahead of the
legislation and legislated time clock deadline - the outcome of
this weekend
may, to a certain extent, be dampened and we could be faced with
an
altogether damp squib. However, being prepared for the worst and hoping
for
the best, seems an apt maxim in our troubled times.
No-one has a
crystal ball as to what will actually happen tomorrow (3rd
February, 2007).
However, being a Saturday, security and law enforcement
agencies could see
fit, as a means of harassment, to arrest and lock farmers
up over the
weekend. The JAG Trust strongly advises, especially those
farmers under
intense pressure, against falling prey to this strategy and
recommends that
such farmers should take time out from their farms for a
spot of stress
management and sanity maintenance, with a view to facing any
possible music
come Monday.
The JAG Trust will remain vigilant and our hotlines below
will be available
in case of emergencies. We also have on standby legal
representatives and
medical help should the need arise.
The JAG
Team
Hotlines:
011 610 073
091 233 415
By
Tichaona Sibanda
2 February 2007
The Zimbabwe National Army commander
has reportedly ordered a board of
inquiry to investigate circumstances
surrounding last week's disturbances at
the Gweru based Zimbabwe Military
Academy (ZMA).
On Tuesday we revealed that the Military Academy was
sealed off last week,
following a standoff between army cadets and their
instructors over
salaries. It's reported the army saw this as a near
mutiny.
MDC's Mutare north MP Giles Mutsekwa said the board of inquiry
convened by
General Phillip Sibanda comprises senior army officers and
includes the
commandant of the ZMA. The inquiry began hearing evidence on
Monday,
according to Mutsekwa.
The strike by the trainee soldiers
over salaries is the first of its kind in
the history of the Zimbabwe
National Army and it's feared it could have
serious repercussions for the
instigators.
Mutsekwa, who is also Morgan Tsvangirai's military adviser,
said the
standoff is being regarded as very serious in the army and could
signal the
end of the cadets' military careers. The number of cadets
involved is not
known, but it's believed they've all been detained
incommunicado inside the
military fortress, pending the conclusion of the
inquiry.
'I think the issue that triggered this standoff is that all
these regular
cadets at the ZMA are people who have not been or are not
connected
whatsoever with the history of the liberation struggle. Therefore
during
their training they're there purely as professionals, they don't want
to be
indoctrinated by the usual Zanu (PF) propaganda,' Mutsekwa
said.
The atmosphere at the academy is reportedly still very tense with a
lot of
officers from the cadet wing being viewed with suspicion for
allegedly
influencing the cadets to stand up for their
rights.
Relatives of the cadets involved have not been allowed to see
them and there
are fears they may have been brutally interrogated. The
standoff and
subsequent investigations have been ignored by the state
media.
SW Radio Africa Zimbabwe news
By Lance
Guma
02 February 2007
The Zimbabwe National Students Union (ZINASU)
has issued a statement
threatening a class boycott if the government fails
to withdraw
controversial tuition fee increases. Government increased fees
between 300%
and 2000% depending on the courses. The students body have
given 13th
February as the deadline for their demands to be met saying they
will begin
class boycotts on the 14th of this month. According to research
undertaken
by ZINASU more than 31% of the student population has dropped out
from
college since February 2006, when government began to roll out a spate
of
tuition fee increases.
The student body's National Executive
Council (NEC) met on Friday and
amongst other demands called on the
government to allocate 26% of the
national budget to education, in line with
recommendations by the United
Nations Educational Scientific and Cultural
Organisation (UNESCO). 'Everyone
has a right to education. The fees being
charged in all the colleges in
Zimbabwe are a clear insult to our parents;
most of them are poor peasant
farmers and civil servants who are living way
below the poverty datum line,'
Promise Mkwananzi the ZINASU president told
Newsreel.
He says students are also clearly aware the bulk of their
problems are
political and that only under a new, people driven constitution
could things
change in the country. ZINASU meanwhile expressed its support
for the strike
by the doctors, nurses and teachers adding that although they
sympathised
with the patients who are suffering, those on strike had
legitimate
grievances.
SW Radio Africa Zimbabwe news
The Herald
(Harare)
February 2, 2007
Posted to the web February 2,
2007
Tandayi Motsi And Freeman Razemba
Harare
SOME politicians
have been implicated in illegal gold mining activities
while others have
tried to interfere with police operations but the force
has stood firm
resulting in 113 people being prosecuted and jailed.
Police Deputy
Commissioner Godwin Matanga yesterday said some MPs were
involved in illegal
mining activities while some ministers had tried to
interfere with their
clampdown on illegal mining.
Deputy Comm Matanga said the involvement
of the politicians in illegal
mining emerged during police's Operation
Chikorokoza Chapera/Isitsheketsha
Sesiphelile, launched to deal with illegal
mining.
He was speaking before the Parliamentary Portfolio Committee on
Mines,
Environment and Tourism.
Deputy Comm Matanga was responding to
questions from MPs during a
presentation of oral evidence on concerns raised
by various stakeholders on
the police blitz.
Home Affairs Secretary
Mr Melusi Matshiya and other senior police officers
attended the
hearing.
Kariba Member of the House of Assembly Cde Shumbayaonda
Chandengenda
(Zanu-PF) said when the operation was launched there was little
information
about it and this resulted in confusion.
He said some
small-scale miners had accused the police of harassment.
In response,
Deputy Comm Matanga said some politicians were involved in
illegal gold
mining activities.
He said the politicians who were against Operation
Chikorokoza
Chapera/Isitsheketsha Sesiphelile had vested interests as they
were
benefiting from the corrupt activities.
"Some Members of
Parliament are being implicated in the illegal mining
activities. That is as
far as I can say," he said.
Asked by the chairperson of the committee, Mr
Joel Gabuza Gabbuza, whether
some ministers were interfering with the
operation, Deputy Comm Matanga
said: "Yes, Mr Chairman."
He said he
was not in a position to elaborate on the involvement of some
politicians in
the nefarious mining activities.
Police, Deputy Comm Matanga said, would
continue carrying out their mandate
without fear or favour.
On
complaints by some small-scale miners that they were allegedly being
ill-treated by the police, he said such cases should be reported so that the
culprits would be brought to book.
"We have no reason to sweep that
dirt under the carpet. No ways," he said.
Deputy Comm Matanga said
some
small-scale operators were involved in gold smuggling.
He
said in Bulawayo police had recovered 420kg of gold ore, which if
processed
would weigh 320kg that was meant to be siphoned out of the
country.
Snr Assistant Comm Charles Mufandaedza, who is commanding
the operation,
told the committee that diamonds worth $6 billion were
recovered in the
Chiadzwa area of Manicaland.
Security agents had
been deployed along the Mutare-Beitbridge Road to curb
the illegal buying of
diamonds by foreign nationals.
Snr Asst Comm Mufandaedza said more than
20 000 illegal panners were
operating in Chiadzwa, 90km from Mutare, when
the police moved into the area
but the situation was now under
control.
He said the 600-hectare area in which the mining activities were
being
conducted had been ring-fenced although the diamond deposits were
believed
to cover 67 000 hectares.
Snr Asst Comm Mufandaedza said the
gold ore that had been confiscated from
the miners would be kept as exhibits
and would be returned to them if
exonerated from illegal dealings.
Mr
Matshiya said apart from environmental degradation, the illegal
small-scale
miners were also involved in other criminal activities such as
stock
theft.
The operation, he said, would continue until there was sanity in
the mining
sector.
The MPs wanted to know what the Ministry of Mines
and Mining Development was
doing to normalise the situation in view of the
fact that gold production in
the small-scale sector had ground to a
halt.
A senior official, Mr Valentine Vera, said the ministry was
currently
renewing licences for the miners who fulfilled the
regulations.
He said so far about 40 licences had been
renewed.
The ministry, Mr Vera said, was also exploring the possibility
of making
Environmental Impact Assessment (EIA) reports affordable to the
miners as
currently more than $2,4 million was needed to compile and lodge
the
reports.
He said the small-scale mining sector was a key
player in gold production as
it contributed half of the 22 tonnes produced
in 2004.
At least 27 994 people have been arrested countrywide while
31,8kg of gold
worth more than $508 million having been recovered under the
operation.
Operation Chikorokoza Chapera/Isitsheketsha Sesiphelile is
being jointly
conducted by the police, Reserve Bank of Zimbabwe and other
arms of
Government.
In a related matter, 113 illegal gold dealers and
panners have been
convicted and jailed two for years each with hard labour,
without the option
of a fine.
The dealers and miners were arrested
under Operation Chikorokoza
Chapera/Isitsheketsha
Sesiphelile.
Midlands province had the highest number of those jailed
with 87,
Mashonaland West (13), Mashonaland Central (10) and Matabeleland
South (3).
Police spokesperson Inspector Jessie Banda yesterday said the
implementation
of the Finance Act Number 2 of 2006, which came into force on
January 5 this
year, was of immense assistance to them.
Insp Banda
said the Act had removed discretionary or suspended sentences and
made
custodial sentences mandatory.
The law has also enabled police to
effectively deal with illegal gold
panners, as it prohibits dealing in or
possessing gold by unauthorised
persons.
She said the majority of
those convicted were gold panners who were arrested
for prospecting for gold
without a licence.
"It is our fervent hope that the nation at large will
co-operate with the
police during the execution of the operation for the
benefit of us all and
future generations," said Insp Banda.
The
operation was launched on November 21 last year.
From the Zimbabwe Vigil
Vigil supporters took part in a demonstration outside the French
Embassy in
London on Friday, 2nd February, demanding that France stop
sitting on the
fence about Zimbabwe.
The demonstration was organised
by ACTSA (Action for Southern Africa) to put
pressure on the French
government following suggestions that it might invite
President Mugabe to
the Franco-African Summit in Cannes from 14 - 16th
February. Euan
Wilmshurst, the Director of ACTSA, which is the successor to
the
Anti-Apartheid Movement, said he wanted an assurance that France
supports
the renewal of targeted sanctions against Mugabe and his cronies.
These
prevent leading members of the regime travelling to the European
Union.
The demonstration was attended by some 50 people, including
Kate Hoey MP,
the Chair of the All-Party Parliamentary Group on Zimbabwe.
She said it was
important that the sanctions were renewed when the matter
came up again in
Brussels later this month. The bulk of the demonstrators
were trade
unionists, including some prominent union leaders who expressed
outrage at
the brutal treatment of trade unionists in Zimbabwe. They
carried banners
reading "Respect Workers' Rights in Zimbabwe", "Drop Charges
against Trade
Unionists" and "Honour the EU Zimbabwe ban".
Vigil
co-ordinator
The Vigil, outside the Zimbabwe Embassy, 429 Strand, London,
takes place
every Saturday from 14.00 to 18.00 to protest against gross
violations of
human rights by the current regime in Zimbabwe. The Vigil
which started in
October 2002 will continue until internationally-monitored,
free and fair
elections are held in Zimbabwe. http://www.zimvigil.co.uk
Zim Online
Saturday 03 February 2007
By Prince Nyathi
HARARE
- The ruling ZANU PF party's supreme decision-making body the
Politburo, on
Wednesday resolved to fire former secretary general Edgar
Tekere for
allegedly denigrating President Robert Mugabe.
At a meeting held at the
party's headquarters in Harare on Wednesday, Mugabe
is said to have
personally brought up the matter for discussion.
But the Politburo is
said to have failed to adopt the resolution to fire
Tekere after some
members raised procedural matters on the motion.
Sources within ZANU PF
say there was resistance over the move to fire Tekere
with some members
saying the Politburo did not have powers under party's
constitution to
handle disciplinary matters.
"According to the party's constitution, the
matter is supposed to be dealt
with at the party's branch level because
Tekere is an ordinary card-carrying
member," said a member of the Politburo
who refused to be named.
"After the branch has made its recommendation,
it then submits the decision
to the district, which in turn submits to the
province then the national
disciplinary committee chaired by
Nkomo.
"It will then hand it over to the central committee for final
decision. But
President Mugabe realising that the members at the branch
level are too
junior to Tekere, has decided to ignore the constitution and
handle the
matter himself," he said.
The sources told ZimOnline that
some Politburo members felt firing Tekere
for exercising his democratic
right to free speech would impact negatively
on the party's already battered
image.
After debating the matter, the Politburo asked the presidium to
look further
into the matter. The ZANU PF presidium is made up of Mugabe,
vice-presidents
Joice Mujuru and Joseph Msika and national chairman John
Nkomo
Only Mugabe and Mujuru were at the meeting last
Wednesday.
Tekere, once a key ally of Mugabe, was fired from ZANU PF in
1988 after
criticising plans by the veteran president to set up a one-party
state. He
was however readmitted into the party last year.
The
firebrand nationalist last month launched his fiery autobiography, A
Lifetime of Struggle, which ZANU PF officials say distorts the history of
the 1970s liberation struggle.
He also blames Mugabe in the book for
ruining the country's once vibrant
economy.
The ZANU PF women's and
youth leagues have already called for Tekere's
expulsion from the party
accusing the veteran nationalist of denigrating
Mugabe.
ZANU PF
spokesperson Nathan Shamuyarira could not be reached for comment on
the
matter. - ZimOnline
VOA
02 February 2007
Meeting business
leaders in Bulawayo on Friday in the wake of his monetary
policy statement
earlier in the week, Reserve Bank of Zimbabwe Governor
Gideon Gono said some
ruling party members want to drag him into their
succession
battles.
Gono declared on Wednesday that he would not devalue the
Zimbabwe dollar
though its value on the parallel market has plunged to about
Z$5,000 to the
U.S. dollar while his bank has kept the official rate at
Z$250 since a July
currency overhaul. He also blamed the country's 1,205%
inflation rate on
runaway government spending.
His comments on the
struggle within the top ranks of the ZANU-PF party to
succeed President
Robert Mugabe further put some additional distance between
Gono, seen as a
potential presidential contender, and the apparatus of the
ruling
party.
But Gono is burdened with his economic record, as Movement for
Democratic
Change faction leader Arthur Mutambara noted. He told reporter
Blessing Zulu
of VOA's Studio 7 for Zimbabwe that Gono's monetary policy
statement was an
admission of failure.
Economic observers add that
Gono's policy statement isn't likely to be of
much help in Zimbabwe's
relations with the International Monetary Fund. The
board of the global
lender of last resort will consider Zimbabwe's
membership status later this
month.
An IMF mission in Harare late last year was critical of the
Reserve Bank's
extensive financing of operations of government ministries
and state
enterprises. Such quasi-fiscal activities have meant printing
large amounts
of money, fueling inflation.
An IMF analysis to be
presented to the executive board says such
quasi-fiscal funding accounts for
83% of total central bank assets - loans,
in the language of
bankers.
Most of these loans to state-owned firms are unlikely ever to be
repaid,
leaving a huge hole in the central bank's balance sheet which Gono
proposes
to fill by shifting these doubtful loans to a new special-purpose
RBZ
subsidiary called Fiscorp, which will administer the loans and attempt
to
collect on them from borrowers.
Experts say this is unlikely to
impress the IMF board, particularly if the
Reserve Bank continues to fund
government overspending. There is also the
issue of $127 million in debt
arrears to the Fund, and the government's
continuing disregard of IMF policy
prescriptions - first and foremost its
repeated urgings to rein in huge
deficits.
Chief Economist Prosper Chitambara of the Labor and Economic
Development
Research Institute in Harare predicts that IMF sanctions -
suspension of
Zimbabwe's membership and Fund borrowing privileges - will
stay firmly in
place for now.
Economist John Robertson told reporter
Blessing Zulu that the RBZ will
continue to fund government overspending and
Harare will remain in disfavor
at the Fund.
zimbabwejournalists.com
By Arthur Mutambara
Why a Monetary Policy Statement
(MPS)?
In terms of the Reserve Bank Act of Zimbabwe, the Governor is
required by
law to issue a monetary policy review each year, which should
among other
things, discuss current economic and financial trends in
Zimbabwe - as well
as outline policy initiatives on maintaining price
stability and exchange
rate management.
Essentially, the basic
objective of any Monetary Policy Statement (MPS) is
to attain and preserve a
low and stable rate of inflation. While both the
global and regional
economic predictions are pointing towards a modest
growth in 2007,
Zimbabweans unfortunately continue to be saddled with
further economic
decline. It is believed that the Zimbabwean economy has
shrunk by close to
60% over the past 6 years and the country continues to
face persistent
negative growth. Inflation is expected to reach frightening
levels of 5 000%
in 2007.
The side effects of hyper-inflation have been too obvious:
economic
distortions, misallocation of resources, erosion of incomes,
discouragement
of savings, and uneven distribution of incomes. Inflation has
a devastating
effect on the welfare of the ordinary people. It is no wonder
that despite
the negative economic outlook, Zimbabweans continue to view the
MPS as a
source of faded hope. We believe that no matter how cleverly
crafted, the
MPS can not resolve Zimbabwe's deep-rooted problems.
As
indicated above, a monetary policy framework should be designed to
promote
economic stability through delivering low and stable inflation. Low
inflation as reflected by price stability is fundamental to stable growth
levels and employment. And for this to be effective, it requires
appropriately designed instruments and policy initiatives which are
complimented by an appropriate fiscal policy
framework.
Unfortunately, this desired situation does not obtain in our
country. There
is very little macro-economic policy coordination between
Monetary and
Fiscal authorities in Zimbabwe. This is obvious from the finger
pointing
which has been exhibited on the issue of RBZ quasi-fiscal
activities,
between the Minister of Finance and the Governor of the RBZ. It
is within
this context that the MDC responds to the 2006 year-end monetary
policy
statement presented by the Governor of the RBZ on the 31st of January
2007.
In the presentation there is a tacit but unexplored acknowledgement
that the
Zimbabwean economic crisis is essentially political.
There
is also an admission that this meltdown has been financially
beneficial to
ZANU(PF) leaders and their supporters. More importantly the
Governor admits
that the RBZ has failed to deliver on its mandate, in
particular that it has
lost the battle with parallel market. In essence this
is a breaking point
monetary policy statement, where the RBZ has essentially
abdicated
responsibility on the core business of any Central Bank:
inflation, exchange
rate and financial sector management. There is nothing
substantive in the
statement on these key functions.
While no inflation targets are given,
the Governor warns that if no action
is taken "inflation will rise
significantly in the near term" and that
"Without bold steps, inflation will
swallow our economy (sic) to levels not
seen before". Thus the only panacea
in achieving disinflation requires all
stakeholders "to act now" and take
part in a "social contract" for monetary
policy stabilisation. The figures
given by the Governor appear to be mere
completion of the formalities of a
monetary policy statement, than any
serious coordinated results of policy
predictions.
For example without giving inflation target, the Governor
says that "Fiscal
and monetary policy restraint" will see broad money supply
declining to
450-500% by December 2007 and to under 65% by December 2008.
Other figures
like the M3 growing at 1 438% at the end of November from 670%
at the end of
May, domestic credit rising to 1 278% to $526 billion are
thrown about
without any solid analytical basis. It is difficult to
understand how the
Governor expects interest rate policy to be "guided by
inflation outlook"
while in the same breath high interest rates are to lead
towards
stagflation. Without analysis accommodation rates are said to remain
unchanged at 500-600%.
This was not a monetary policy statement by
any stretch of the imagination.
Unpacking the
Distortions
While the eloquent description of price and exchange rate
distortions
including their impact is noted, there is need to understand the
response by
ordinary Zimbabweans to these distortions. Yes, the primary
creators and
beneficiaries of these anomalies are the ZANU(PF) elites, but
once they are
in place they drive national economic behaviour. Human beings
have rational
expectations and hence behave rationally.
The
distortions in our economy create opportunities for arbitrage. Taking
advantage of these opportunities is the rational thing to do. Selling
foreign money on the parallel market and selling subsidized fuel meant for
farming on the parallel market are the economically rational things to do.
Expecting Zimbabweans to behave differently given the circumstances does not
make sense. Hence, what is criminal is creating an economic environment that
is characterized by staggering distortions and then expecting human beings
to act irrationally.
Furthermore the fundamental drivers of the
distortions must be understood if
sustainable solutions are to be achieved.
The Governor argues that
stakeholders could care less about the cause of the
Zimbabwe economic
crisis, they just want answers. This should be dismissed
with the contempt
that it deserves. Yes, we should not dwell on the causes,
but we have to
understand them, otherwise we end up addressing symptoms of
the crisis and
executing unsustainable solutions.
The causes of our
economic meltdown and hence the distortions include:
political illegitimacy,
poor governance, corruption, global isolation, poor
economic management, and
misguided economic controls. These issues must be
thoroughly appreciated and
used to inform any redemptive framework.
In unpacking the role of
distortions in our economy it is important that the
role of the RBZ in
fueling these distortions be acknowledged: RBZ
involvement in quasi-fiscal
activities, provision of subsidies, exchange
rate control, and buying
foreign currency on the parallel market. There has
been incompetence,
corruption, poor corporate governance and lack of
accountability at the RBZ.
We have not seen externally audited financial
statements of the
RBZ.
The Governor is the executive chairman of the RBZ board, which means
there
are no checks and balance at the bank. For example operation Sunrise
I; how
much did that operation cost, and what were the benefits to the
country?
Given our current economic crisis how can the RBZ authorize the
purchase of
a vehicle worth USD138 000.00 in an opaque transaction where a
foreign
currency denominated loan is advanced to the Governor. Such corrupt
and
criminal activities at the RBZ must be acknowledged if the Governor's
ranting about ZANU(PF) elites are to be credible. There should be no
selective application of analysis.
The IMF has established a code of
conduct called the "Code of Good Practices
on Transparency in Monetary and
Financial Policies - the Declaration of
Principles". The main thrust of the
Code is to "establish desirable
transparency practices for central banks in
their conduct of monetary
policy". Our review of the conduct and practice
of the RBZ shows that it
fails immensely against these
standards.
Deconstructing the Social Contract
How do we remove
the distortions? What is required is a dramatic movement
towards market
forces, by removing all controls. However, there has to be a
context and the
right environment to make this effective. Of course there
will be redemptive
pain and probably a political price to pay. We must lead,
and leadership is
about making unpopular decisions popular.
The Governor outlined efforts
that should be pursued in particular the
Social Contract. The effectiveness
of a social contract as a tool for
resolving economic crises in history is
well documented. The general
framework is an agreement to freeze wages,
prices and expenditure in a
consensus driven framework involving all key
players; government, labour,
business, opposition parties, and civic
society. However, there are key
parameters that have to be in place. A
social contract depends on solid
political will, total buy-in, inclusive
ownership, acceptance of the
problems, honesty of participants, and moral
suasion.
There must be a legitimate government in power, not a regime
that is a
product of disputed elections. A regime that brutalizes leaders
from labour,
civic society, business, and political parties, has no capacity
to
facilitate the requisite discourse. You cannot even begin to discuss the
notion of a social contract where there is contested legitimacy of the key
stakeholder: the government.
There cannot be any total buy-in by all
stakeholders to a process driven a
by an illegal regime. There is an
additional dimension to the debilitating
Zimbabwean illegitimacy; the
ZANU(PF) succession fight. The different
ZANU(PF) factions engrossed in a
self-destructive orgy will not even agree
on the contents and processes of
the social contract. That is how
dysfunctional our country has
gotten.
In addition, ZANU(PF) as a party must come to terms with the fact
that
neither rainfall patterns nor external forces will ever replace good
governance, good economic management of a country by its own people as the
principal resource. Does the Governor really believe that this deeply
entrenched interest group who have benefited from the status quo of the
massive distortions, will give up easily to a level playing field in a
social contract, all within the month of February?
It is also
important for Zimbabweans to understand why the Tripartite
Negotiating Forum
(TNF) processes have always failed. Furthermore, given the
nature of the
economic crisis our social contract will not succeed without
external
financial assistance. This help will not be forthcoming, as long as
we are a
pariah state run by an illegitimate regime.
Consequently, on the social
contract our message is very clear: There is
need for a legitimate
government as a necessary precondition. This can be
achieved through a new
constitution and internationally supervised
elections.
MPS
Formulation: The Way Forward
The World over, the trend is now that the
monetary policy is formulated by a
body called a Monetary Policy Committee
(MPC), as in the case of South
Africa, Botswana and Britain. It has been
found that having a body such as
an MPC ensures credibility and wide
formalized consultation in the whole
process.
Sadly, in the case of
Zimbabwe one man - namely the RBZ Governor, formulates
the MPS. The MPC must
be institutionalized as opposed to patronage based
consultations as
currently practiced. In fact in the past the Governor has
been known to brag
about how even the ZANU(PF) cabinet was not aware of the
contents of the
MPS. As the MDC we place high value to an MPS and our
Government will ensure
that it is openly formulated by an independent entity
such as the
MPC.
The trend in terms of fighting inflation is to use an
inflation-targeting
framework. An inflation target framework will entail the
setting of a
numerical target, which is intended to be achieved over the
specific time
period. If appropriately done, the inflation targeting
framework, will
provide a monetary anchor for expectations around which
prices and wages are
set.
Inflation targeting requires the buy-in by
all stakeholders so that they can
subscribe to it. In addition, it helps
make the Central Bank accountable.
The RBZ has failed dismally in the past
in terms of setting a credible
inflation target. Some of the reasons as to
why the RBZ has failed include:-
. Lack of coordination with the Fiscal
Policy;
. Lack of independence on the part of the RBZ;
. Fiscal dominance
which have undermined the effectiveness of any MPS
objectives;
. Poor
leadership on the part of the RBZ Governor;
. Policy inconsistencies and
reversals;
. Lack of credibility;
. Vicious cycle of money supply growth
and RBZ induced credit expansion;
. Unachievable policy objectives;
. RBZ
financial repressive initiatives such as high statutory reserve
requirements;
. Compulsory placement of public debt;
. Counter
productive policy initiatives such as quasi-fiscal activities;
. Inability to
deal with supply shocks;
. General indiscipline by both the RBZ and the
Government
. Lack of intellectual depth in terms of forecasting and planning
at the
RBZ.
As the MDC, we believe that an inflation targeting
mechanism will only work
in a fundamental economic reform program which will
focus on all the key
aspects of this economy, most of which are largely
attributed to the ZANU-PF
misrule. Given Zimbabwe's current level of
inflation, we cannot rely on
monetary targets alone to reduce
inflation.
On the part of RBZ, what is also required is to develop
technical and
institutional capacity to model and forecast domestic
inflation. Appropriate
policy initiatives such as developing econometric
forecasting models,
Philips-curve models, macroeconomic variable models and
other indicator
models are required. In addition, a clear and unambiguous
commitment to
attaining the target should be the primary
objective.
Conclusion
Monetary policy matters in Zimbabwe will
not be addressed in the absence of
a comprehensive stabilization program,
underpinned by institutional and
political reforms. In particular the
starting point is a new people driven
constitution, followed by
internationally supervised elections. Only then
can meaningful efforts such
as social contracts and monetary policy
formulation take place.
What
the current RBZ statement means is that this is the end of thinking for
the
regime of Robert Mugabe. They now agree that they can no longer pretend
to
apply traditional monetary policy instruments. They then propose to adopt
a
social contract approach, which we have amply demonstrated to be
impossible
under the current illegitimate ZANU(PF) regime. This is the end
of the
road.
Media Institute of Southern Africa
(Windhoek)
February 2, 2007
Posted to the web February 2,
2007
The government-controlled Media and Information Commission (MIC)
has still
to license the "Financial Gazette" weekly, almost a month after
the expiry
of its two-year operating licence under the controversial Access
to
Information and Protection of Privacy Act (AIPPA).
The editor of
the "Financial Gazette", Sunsley Chamunorwa, confirmed that
they have yet to
have their licence renewed after lodging the requisite
re-registration
documents. Chamunorwa told MISA-Zimbabwe that he would only
give details
after their meeting with the statutory regulatory body, the
MIC, on 1
February 2007.
On reports that the MIC was refusing to renew their
licence, demanding that
the newspaper first disclose its owners, Chamunorwa
said he was not yet in a
position to provide further details.
MIC
chairman Tafataona Mahoso, however, reportedly confirmed to "Zim-Online"
that his commission had not renewed the weekly's licence, but refused to
divulge further details. "It must be known that it is not an automatic
renewal, there are things that we look at . . . before granting a licence
and we are still looking at their application," Mahoso said.
He
added: "We are not saying they will get a licence or not." Newspapers
renew
their publishing licences every two years while journalists, who also
require licences to practice, must renew theirs after every 12
months.
The weekly's general manager, Jacob Chisese, confirmed the paper
was still
to receive a new licence from the MIC. According to "ZimOnline",
Chisese
refused to disclose details for confidentiality reasons, but he
expressed
hope that his paper would soon have its licence renewed.
He
said: "I can confirm we have not received our licence and we hope to get
it
as soon as possible like the others. Issues to do with licences are
confidential so we cannot just go public over the matter because there are
still issues we are clearing (with the MIC)."
Zim Online
Saturday 03 February 2007
By
Menzi Sibanda
BULAWAYO - Zimbabwean police on Friday released without
charge four
opposition supporters who were arrested in Bulawayo on Thursday
for
demanding the immediate resignation of President Robert
Mugabe.
The four were part of a group of about 200 Movement for
Democratic Change
(MDC) party who took to the streets in the city to demand
sweeping political
reforms in Zimbabwe.
A senior MDC official in
Bulawayo, Samuel Sipepa Nkomo, confirmed the
release of the four
supporters.
"They were released without charge. We are now looking
forward to mounting
more protests across the country to pressure Mugabe and
his regime to
resign. We just cannot stand the suffering any more," said
Nkomo.
There was a heavy presence of police in Bulawayo yesterday with
police
spokesperson, Shepard Sibanda saying they were "ready to deal with
any form
of unlawful behaviour" from the opposition party.
The
demonstration was led by senior officials in the Morgan Tsvangirai-led
MDC
who included the party's vice-president Thokozani Khupe, Getrude
Mthombeni
and Nkomo.
Several opposition supporters have been arrested by the police
over the past
seven years for allegedly flouting the country's tough
security laws. Most
of them have however been released without
charge.
The MDC accuses President Robert Mugabe's government of using the
security
laws to stifle legitimate political dissent, a charge the
government
denies. - ZimOnline
The Herald
(Harare)
February 2, 2007
Posted to the web February 2,
2007
Harare
THREE male nurses stationed at Harare Central Hospital
were yesterday
arrested on allegations of inciting their colleagues at
Parirenyatwa
Hospital to go on strike.
Police spokesperson Chief
Superintendent Oliver Mandipaka said the three
left their workplace and
proceeded to incite their colleagues who were
working to follow
suit.
They were arrested by detectives from the Law and Order Section
following a
tip off.
"We have arrested three nurses based at Harare
Central Hospital for
allegedly inciting or instigating other nurses to go on
an illegal
industrial action and stop them from attending to patients at
Parirenyatwa
Hospital," said Chief Supt Mandipaka.
He said police
were still investigating the matter with a view to preferring
charges
against the trio under the Public Order and Security Act (POSA) or
under the
Criminal Law (Codification and Reform) Act.
"We want to send a stern
warning to others of the like-mind who want to
thrive on lawlessness to stop
their action forthwith," said Chief Supt
Mandipaka.
There was
pandemonium at Parirenyatwa Hospital yesterday when the three
entered the
hospital and force-marched their colleagues who were working to
join their
colleagues who are on strike.
It is understood that a group of striking
nurses was during that time
marching outside the hospital.
At around
10am, the casualty section was deserted and the situation outside
the
hospital chaotic as the three men went through the wards.
Disturbed by
reports of the incitement, Health and Child Welfare Minister Dr
David
Parirenyatwa visited the hospital to establish whether the situation
required Government intervention.
The Herald also visited the
hospital and observed that the casualty section
was operating although some
patients said they had been waiting for hours to
be attended.
"I
understand that at Parirenyatwa 154 nurses are working while 100 are on
strike. The report I have also shows that nurses at both United Bulawayo
Hospitals and Mpilo are at work," Dr Parirenyatwa said.
He said 72
junior resident doctors were at work while 94 at the country's
four central
hospitals were still on strike.
"Only 19 are working at Harare while the
other 38 are on strike,
Parirenyatwa has 41 intern doctors on duty while out
of the 25 junior
doctors at Mpilo, 19 are on strike."
United Bulawayo
Hospitals has only six working junior doctors out of 21.
Junior doctors
downed tools on December 21 last year demanding a $5 million
monthly salary
among other benefits which include accommodation for those
who stay out of
the hospital premises and realistic vehicle loans.
They got increases
which left their salaries at slightly above $1 million.
The bulk of the
nurses at Harare and Parirenyatwa Hospitals joined the
strike on Monday as
they demanded payslips for the supplementary package
they had been
promised.
On Monday the bulk of the nurses at Harare Central Hospital
were relaxing
under some trees.
Dr Parirenyatwa said he could not
comment on why the nurses had remained on
strike when they had got an
increase this week.
"I cannot really say whether they are not happy
because this has not been
communicated to me," he said.
Dr
Parirenyatwa said he was however, concerned about the situation.
"I am
worried that junior doctors who are on strike are now going around
some
non-governmental organisations asking them to help them. I am no longer
sure
whether they have a genuine case.
"We want them to work, we have spent a
lot of money training them and until
now we are striving to improve their
working conditions.
"We had expected that ethics should have compelled
them to return to work by
now."
He said his ministry was closely
working with various stakeholders who
included the Ministry of Finance and
the corporate world to buy cars for
doctors.
"We see the need to
review the $4 million car loan scheme and are also
involving the private
sector for us to come up with a better deal in the
case of
vehicles."
He said salaries of health workers would also been reviewed
quarterly to
cushion them against inflation.
The Herald
(Harare)
February 2, 2007
Posted to the web February 2,
2007
Harare
THE delay in setting up the administrative structures
of the Zimbabwe
Investment Authority has stalled the construction of the
Beitbridge
industrial park, which was being undertaken by the now defunct
Export
Process Zones Authority of Zimbabwe.
EPZA was last year merged
with the Zimbabwe Investment Centre following the
codification of the
Zimbabwe Investment Authority Act.
Beitbridge industrial park was the
biggest project that EPZA had been
running prior to its marriage with
ZIC.
Sources said construction work has been halted, adding it could only
resume
after the appointment of a board of directors for the new
authority.
"There is nothing happening as of now. All the work has been
stopped and it
may resume once new directors who would sit on the ZIA board
are appointed,"
said a source.
In light of the runaway inflation --
which currently stands 1 281 percent
annually and is projected to rise
further - it would have been prudent for
the construction work to proceed
pending appointment of the directors.
The new board is also expected to
redefine the status of the park in line
with the new
legislation.
Industry and International Trade Minister Mr Obert Mpofu
said in an
interview that names of those selected to sit on the board had
been
submitted to President Mugabe for final approval.
"The process
(of appointing directors) is being followed in a normal way and
an
announcement will be made once we are done," he said.
The park is being
developed on 42 hectares of land. It was mooted several
years ago and was
initially scheduled for completion by 2004.
The delay has been largely
attributed to inadequate financial resources. On
completion, the park would
comprise eight buildings with several factory
shells. Since building
started, only one buildings has been completed while
the second one is
halfway through.
Industrial parks have the advantage of facilitating
technology transfer,
consolidating cluster development and employment
creation.
Sunway City, a subsidiary of State conglomerate Industrial
Development
Corporation, is also constructing a multi-billion dollar
industrial park in
Ruwa, about 20 kilometres east of Harare.
VOA
By Ndimyake Mwakalyelye
Washington, DC
02
February 2007
A protest march staged in Bulawayo this week by
the faction of Zimbabwe's
opposition Movement for Democratic Change led by
Morgan Tsvangirai caught
many by surprise - not only the police but also
some of the MDC grouping's
civil society allies.
Tsvangirai faction
spokesman Nelson Chamisa said the secrecy reflected steps
taken by the
faction to spread word of protests without tipping off security
forces.
Chamisa said Thursday's large demonstration was just "a grain" of
what is to
come.
But the march of an estimated 3,000 MDC supporters was not entirely
to the
liking of civic groups who said they wished the faction had not
decided to
go it alone. However, others commented that the opposition has
moved to
reclaim its political force after spending much of the past year
sorting
itself out after an internal split.
For perspective, reporter
Ndimyake Mwakalyelye of VOA's Studio 7 For
Zimbabwe turned to senior analyst
Sydney Masamvu of the International Crisis
Group's Southern African office
in Pretoria, South Africa, and
communications manager Fambai Ngirande of the
National Association of
Non-Governmental Organizations.
Ngirande
expressed the concern that MDC allies in the broad alliance
assembled in the
Save Zimbabwe Campaign weren't included in planning the
protest.
The Herald
(Harare)
February 2, 2007
Posted to the web February 2,
2007
Harare
THE Zimbabwe National Water Authority has resumed
normal water supply
following an improvement in the supply of key chemicals
required in
purifying water.
Zinwa took over from Harare City Council
and is now responsible for sewage
and water treatment management in the
capital.
In a statement yesterday, the water authority assured Harare
residents that
water problems would ease in the coming week following
improvements in the
supply of aluminium sulphate.
Aluminium sulphate
is a key chemical in water purification.
"Zinwa wishes to advise
residents of Harare that it has resumed normal water
production and pumping
to all parts of the city
"And also its environs following improvements in
the supply of aluminium
sulphate that had forced the authority to cut down
production," read the
statement.
Water supplies to the central
business district, parts of the northern
suburbs such as Ashdown Park,
Avondale and Mount Pleasant and the southern
suburbs are now back to
normal.
Zinwa said areas furthest from the major treatment plants were
still
experiencing water problems.
The affected areas include
Mabvuku-Tafara, Zimre Park, Ruwa, Epworth,
Greendale, Kambanji, Glen Lorne,
Chisipite, Mandara, the Grange and Colne
Valley.
"We wish to assure
residents of these low-lying areas that water supplies
will resume in their
areas this evening while residents of higher ground
areas will start
receiving water tomorrow," the statement further said.
However, despite
the improvement in chemical supplies Zinwa has introduced
water rationing in
some low-density areas.
Under the water demand management system water
would be released to some
low-density residential areas between 5am and 9am
before supplies are cut
off for the rest of the day.
This, Zinwa
said, was to allow water levels to build up again in reservoirs.
Water
rationing is likely to continue until an improvement in the chemicals
supply
situation, Zinwa added.
Zinwa also noted that power supply problems being
experienced throughout the
country have negatively impacted on the
authority's operations.
"This, however, result in low levels in our water
storage reservoirs and
disruptions in our water supply schedules to
residential areas," Zinwa said.
The water authority said water problems
had come at a time when there was a
cholera outbreak and would continue
working hard to complement efforts to
contain the spread of the fatal
disease by ensuring that the city got
adequate water supplies.
The
water authority appealed to residents to continue using water sparingly
as
demand for water has outstripped supply capacity in Harare.