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Outrage as Tel*One switches off emergency numbers

Zim Independent


Lucia Makamure


THE public has expressed outrage over the withdrawal of essential and
life-saving emergency telephone services by the national fixed phone
services provider Tel*One during the evenings and weekends.

Tel*One instituted the unwelcome changes that include switching off
emergency numbers for the fire brigade, ambulance and police hotline at
night and over weekends as well as other operator-assisted call services.

Concerned clients said the changes were inconveniencing many people.

"If your house catches fire at night and you cannot get through to the
fire services department, you risk losing everything or should someone get
sick at night that person can die," a Harare resident who said his name was
immaterial because he was expressing a public concern said.

Sources within the service provider revealed that Harare Tel*One
operator services had for the past months been operating from 8am to 8pm
from Monday to Friday with two supervisors per shift.

"Some of the operators who used to operate the Harare office were
moved to Gweru International Exchange and Bulawayo Sales Offices last
November leaving only four supervisors to do work that was previously done
by more than 60 operators," the source said.

Peter Simon, a fire technician at the Harare Ambulance and Fire
Brigade Office said, the emergency number 99 was connected to five telephone
lines at the fire station office.

"It is difficult for us to tell whether or not there is a reduction of
traffic from Tel*One emergency numbers to our offices unless we receive
public complaints," Simon said.

He said his office was in the process of introducing toll-free
telephone numbers for use by the public to get in touch with the Ambulance
and Fire Brigade services. The office has applied for toll-free telephone
lines from Tel*One.

Mufakose resident, Tsungirirai Muungani complained that it was a very
difficult to get through to the operator's desk even during the day. The few
attendants appear unable to cope with handling the traffic from the whole of
Harare and the three Mashonaland provinces that the Harare Operator Office
caters for.

"The management is more interested with cost-cutting measures yet they
are putting the lives of many people at risk. We have made many complaints
regarding failure to access the Telephone Exchange but up to now nothing has
been done," she said.

Meanwhile, workers at Tel*One have complained about the unfair grading
system being used by the company.

Under the present grading system workers in the technical department
earn more than those in the commercial department do.

This has resulted in a scenario where technical workers without
professional qualifications earn more than those in the commercial
department with professional qualifications like National Certificates and
Diplomas in accounting and book keeping.

"I am employed as a clerk here and I have an accounting diploma yet I
am earning less than what someone in the technical department without
professional qualifications is earning. It is just not fair as it mean that
my qualifications do not matter at all.

Efforts to get a comment from Tel*One were fruitless as they failed to
respond to the questions sent to them two weeks ago.



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Tsvangirai plays down MDC rift
Ray Matikinye

Zim Independent




MOVEMENT for Democratic Change leader Morgan Tsvangirai has said his
party is not banking on the reunification of its two factions to mobilise
Zimbabweans to resist President Mugabe's bid to extend his term to 2010.

He said the Save Zimbabwe Campaign, a broad coalition of civic groups,
was the only way to go in confronting the Zanu PF regime.

Responding to calls for a reunification of the splintered MDC,
Tsvangirai said there was a mistaken view that resolution of the national
crisis depended on unity in the opposition.

In an interview at his Strathaven home in Harare on Wednesday,
Tsvangirai said his party's focus was on finding a way to resolve the
national crisis which he said was spawned by Mugabe's intransigence.

This follows statements by the other faction leader, Arthur Mutambara
in his New Year message that only a united MDC had the chance to loosen
President Mugabe's grip on power.

Mutambara called for urgent cooperative "action" by all opposition
forces, saying if there was a failure to do so, the people of Zimbabwe
should reject the MDC and look for other alternatives.

"People tend to forget that the national crisis was not caused by the
split in the MDC but by Zanu PF," Tsvangirai said.

"There are those who want to perpetuate the status quo and those who
want a democratic transformation of our society and that project - the Save
Zimbabwe Campaign - is the only game in town," Tsvangirai said.

He said the MDC sees a great opportunity that is also a challenge on
how to rally the people against a life presidency.

"In the MDC we believe that our focus should be on how to resolve the
crisis created by Zanu, not to emphasise the fact that there was a crisis
and divisions in the opposition," Tsvangirai said.

Through the road map adopted by a broad coalition of democratic forces
under the auspices of the Save Zimbabwe Campaign (SZC), the choice of a
presidential candidate for 2008 would be determined, he said.

"If there is anything that has rallied people across the political
divide it's the 2010 project," Tsvangirai said.

"The feeling is as strong in Zanu PF as it is in the MDC that Mugabe
cannot be allowed to extend his illegitimacy beyond 2008, that the country
cannot afford another protracted political stalemate for three years without
a resolution in sight," he said.

He said for his party and its civic partners, the solution to the
national crisis is defined by the road map which demands a transition, a new
constitution, and free and fair elections. He said his party and members of
the broad coalition believed this was the only road that Zimbabwe can travel
to resolve the national crisis. Tsvangirai said in order to confront the
Zanu PF 2010 project, the first task the coalition had was to demand that
elections must be held in 2008 as scheduled. Together with its civic
partners, the MDC has to engage in a campaign against the life presidency
which 2010 actually implies, he said.

"We have to insist on the democratic control of national institutions.
Today we are all agreed that Mugabe has abused national institutions to
protect his power," he said.

Tsvangirai also discounted strategies to sideline the broad democratic
movement and try to work with factions within Zanu PF as an alternative
solution to the crisis, saying such strategies only served to defend the
status quo.

"There is no such thing as a reformed Zanu PF. That simplistic
arrangement is saying the political and economic conditions that now apply
should continue under a different face," Tsvangirai said.

"That is not what Zimbabweans are looking for. What Zimbabweans are
looking for is not change for change's sake, but serious transformation,
serious political and economic transformation for them to benefit. What
Zimbabweans are looking for is far deeper transformation than what we have
experienced over the past 26 years."

He scoffed at suggestions that unity of the two MDC factions was
paramount in launching a credible challenge to Mugabe. "I don't believe
there is a crisis in the MDC. That is why we all came together in the SZC.
It is a unity of purpose. The so-called disunity in the opposition is
imaginary."

Tsvangirai said there was a historical precedent when PF Zapu and Zanu
formed the Patriotic Front in a joint effort to confront Ian Smith's regime.
Mugabe could still be successfully confronted under a different political
formation, he said.



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Tekere says Mugabe a liability

Zim Independent


VETERAN nationalists Edgar Tekere and Enos Nkala yesterday slammed
President Mugabe saying their decision to bring him into the struggle for
Independence was a huge mistake.

At a function to launch Tekere's book Tekere - a Lifetime of Struggle,
the two veterans of the struggle for Zimbabwe's liberation said Mugabe had
to be persuaded to join the nationalist cause yet he now regarded himself as
a "king" who had solely delivered the country from colonialism.

"We produced a creature that has destroyed this country," said Nkala,
who said he was instrumental in convincing Mugabe to join the National
Democratic Party, the precursor of Zanu and Zapu.

The function at Sapes offices in Belgravia - attended by diplomats,
academia and the media - contained drama when Nkala attacked the Financial
Gazette for misrepresenting him in a story the paper published last year. In
acerbic remarks about the Fingaz, Nkala told the gathering that the paper
was owned 60% by the Central Intelligence Organisation and 40% by Reserve
Bank governor Gideon Gono. He announced his intention to sue the paper
together with its editor Sunsleey Chamunorwa who was present at the book
launch.

But it was former Zanu PF secretary-general Tekere's riveting
off-the-cuff speech which stole the show at the launch as he chronicled his
involvement in the struggle claiming that Mugabe was today "benefiting from
his sweat" despite joining politics much later.

"I am more Zanu PF than Mugabe," Tekere said.

Wearing a navy blue blazer and red checked shirt, a lively Tekere said
the country's economic problems would worsen as along as Mugabe remained
leader.

"I have heard prayerful predictions that 2007 would be a better year
for this country," said Tekere. "No, it cannot be. It is going to be worse
as long as we continue with the slogan 'Pamberi navaMugabe chete-chete'," he
said.

"Mugabe has become a liability to the people of Zimbabwe."

The statement resonates throughout the book and is aptly captured in
its postscript on page 173.

"The old saying rings true, that you cannot hold one man responsible
for all of a nation's ills. But in Zimbabwe, it is becoming increasingly
difficult not to believe that Robert Mugabe is right at the centre of the
nation's problems; in my view 90% of the blame should go to him, and 10% to
those who have uncritically huddled over him over the years," he wrote.

"I have my share of responsibility, as well as Maurice Nyagumbo, Enos
Nkala and those of our leadership who in extolling Robert Mugabe as we did
at Independence, forgot to put in place the institutional arrangements that
would ensure that the party was sustained by collective leadership,
democratic discourse, adherence to the principles that fuelled our struggle
for Independence, and accountability."

He added: "In retrospect we have to acknowledge that, in the absence
of such institutional arrangements, any one of us, and not just Mugabe,
could have lost the course and degenerated into a virtual dictatorship,
buttressed by the combination of political patronage and the threat of state
brutality if one dared to defy the powers-that-be."

Tekere said despite his expulsion from the party, he had continued to
enjoy more respect from Zanu PF than from Mugabe.

"Senior people in Zanu PF actually say to me: 'Hushef hwaramba kupera',"
he said.

Nkala, who also addressed the gathering, said Mugabe had virtually
become a king despite being invited into the party leadership.

"He speaks as if he and he alone delivered this country from
colonialism. It's a lie. That is the greatest lie," he said.

Nkala said he was also writing a book on the liberation struggle which
he said would expose sellouts. He said the government of Ian Smith had left
documents which showed sellouts in the struggle.

"I am busy in Bulawayo creating a structure that will meet Mugabe
halfway," he warned.

Nkala has in the past said his book will only be published after his
death.

Tekere's book was edited by Ibbo Mandaza and published by Sapes - the
Southern African Political Economy Series. - Staff Writer.



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Stringent water measures for Byo

Zim Independent


Loughty Dube


THE Bulawayo city council, which is facing a serious water crisis, has
imposed stringent measures to save dwindling water supplies after it
decommissioned one of its main supply dams last month.

At an emergency meeting held at the city headquarters this week, the
council resolved to impose stringent restrictions that will see industry and
household water allocations drastically reduced.

A full council meeting on Wednesday resolved, among other issues, to
ban the use of hosepipes for domestic and industrial use, and the use of
council water for brick moulding and construction purposes.

The council also imposed steep fines for offenders and also resolved
to reduce water allocation for household and industrial use.

Under the new measures, households in high density suburbs had their
water allocations reduced from 400 litres a day to 300 litres while in low
density areas daily consumption will be reduced from 550 litres to 450
litres.

Hospitals, clinics and hotels will have their water allocations cut by
10% of the prescribed council allocations.

Bulawayo executive mayor, Japhet Ndabeni-Ncube, said the new measures
would be in place until there was a review of the water levels in the city's
supply dams.

"The situation is precarious at the moment and the measures that we
have put in place are aimed at saving the little water that we have in our
supply dams. As long as the situation continues to deteriorate we will
maintain water rationing," Ndabeni-Ncube said.

He said the inflows into the dams were not encouraging as there was
little rainfall in the region.

The council also introduced stringent enforcement and compliance
measures that include hefty fines for offenders.

Residents who are found using hosepipes will be fined $80 000 and will
have the hosepipes confiscated while persistent offenders will have water
supplies permanently cut off.

A new fine of $150 000 will be imposed on residents found using
council water for brickmoulding and moulding equipment will be confiscated
by the council.

Residents using council water for construction purposes will be fined
$200 000 while those caught bypassing legal water connections will be fined
$500 000.

Bulawayo last month decommissioned Umzingwane dam after water levels
fell drastically. The city now relies on Inyankuni, Upper and Lower Ncema
and Insiza dams for water supplies.

Ndabeni-Ncube however said dam water inflows for the month of December
and January were very low and council was worried that the supply dams will
not receive adequate water to last the whole year.



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Indigenisation Bill before cabinet committee

Zim Independent


Itai Mushekwe


THE contentious National Indigenisation and Empowerment Bill that
seeks to compel foreign-owned companies to cede half their equity to
indigenous players is set for presentation before cabinet's committee on
legislation, a cabinet minister said yesterday.

Minister of State for Indigenisation and Empowerment, Samuel
Mumbengegwi, told the Zimbabwe Independent that the Bill, that is causing
anxiety among foreign companies due to its controversial provisions, would
soon be presented before cabinet.

Mumbengegwi could not give a specific date because he did not prepare
the agenda.

Government is going ahead with the piece of legislation, which will
force foreign owned companies to relinquish a mandatory 50% of their equity
to local players in line with government's empowerment policy thrust.

"The Bill will soon go before a cabinet committee on legislation,"
said Mumbengegwi. "After that it will be presented before parliament for
debate. I cannot tell you exactly when the Bill will go to cabinet because I'm
not the one who prepares the agenda."

The Bill, currently with the Justice ministry for fine-tuning,
provides for indigenous people to take at least 50% shareholding in all
sectors of the economy. But economic analysts have predicted such provisions
create the risk of scaring away foreign investment.

Mumbengegwi defended the legislation saying that it was not unusual as
investment patterns across the world were like that.

He said the Indigenisation Bill must not be construed as
nationalisation because government wants only half the equity and not 51%
ownership of the economy as a way to empower black Zimbabweans.

"Investment patterns all over the world are the same. There is nothing
unusual about what the Bill is all about. We want 50% and not 51% ownership,
so we're not talking of anything unusual.

Contacted for comment, Indigenisation and Empowerment secretary, Ozias
Hove, said it was premature to talk about the Bill as it was still being
drafted and will be tabled before parliament for public debate.

There has been muffled suggestions among ruling party hawks that major
economic players, particularly foreign-owned banks should be targeted to
embrace government's indigenisation programme.

Government has also fired a broadside at people opposing its
indigenisation thrust saying that such people had renounced "their identity,
their own country and national interest" in pursuance of "imperialist
interests".

Government's latest indigenisation target, in the form of a mooted
amendment of the Mines Act, created confusion and alarm in the mining
sector.



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Clinics abandoned for 8 years

Zim Independent


Lucia Makamure


THE World Bank in 1999 abandoned a project to build a hospital and two
clinics in Harare after having differences with government over expenditure
overruns.

The almost complete hospital building within Wilkins Hospital
premises, has been lying idle for the past eight years and there are fears
that soon it might be a target for thieves wanting to steal building
materials.

This was revealed on Wednesday when the council's medical director, Dr
Prosper Chonzi, took the Zimbabwe Independent on a tour of city council
hospitals.

"This building has been like this for the past eight years," said
Chonzi.

"The World Bank was sponsoring the project but after squabbles with
the government, they decided to withdraw their funding and up to now we are
still to engage a sponsor to take over from where they left off. Two other
clinics in Budiriro and Kuwadzana were also left uncompleted."

Chonzi revealed that his department has not received any grant from
government for the past 10 years and that it had been relying on rates from
the city's ratepayers.

The urban poor who cannot afford fees charged by government hospitals
and private doctors mostly use council hospitals and clinics. Late last year
the Minister of Health, David Parirenyatwa, lashed out at the city council
for hiking treatment fees but Chonzi says the increases are justified.

"For a long time we have been charging sub-economic fees but at the
end of the day we still have to buy drugs and other medical supplies," he
said.

"So if we continue charging these sub-economic fees we are going to
end up with clinics and hospitals with no drugs at all."

Council hospitals and clinics are responsible for the treatment of
infectious diseases and the distribution of tuberculosis (TB) drugs and
antiretrovirals (ARVs).

Zimbabwe's economic decline has witnessed a rise in the number of
people who seek cheaper health service at council hospitals, especially for
ARVs.

The clinics are failing to cope with demand as they are facing a
critical shortage of skilled manpower.

"I have been coming here (Wilkins Hospital) for the past week and up
to now I have not been able to get registered for the ARV programme," said a
patient who refused to be named. The visibly sick woman said she had been
tested for HIV infection and was waiting for results next week.

Chonzi attributed the delays to manpower shortages.

"It is true that people are dying before accessing ARV drugs because
at the moment all our establishments depend on Beatrice Infectious Diseases
Hospital laboratory for pre-testing," Chonzi said.

"A process which should take hours is now taking days. We are losing
our staff to neighbouring countries. At the moment we have shortages of
nurses, pharmacists and laboratory technicians."

A man the Independent spoke to at Beatrice Infectious Hospital said:
"I am unemployed and could not afford to buy ARVs but since I got into the
programme I have been getting a month's supply of ARVs for $50 and I am very
grateful for this service."

A tour of the drug storerooms at both hospitals revealed that TB drugs
and ARVs are readily available and more people could be accommodated into
the programmes.

Chonzi said they were working on plans to raise salaries for health
personnel.


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Mugabe unfazed by chance of facing law

Zim Independent


Itai Mushekwe


PRESIDENT Robert Mugabe does not fear facing the International
Criminal Court (ICC) on charges of crimes against humanity.

Mugabe made the disclosure last month during a wide-ranging interview
in Harare with the Canadian television station OMNI.

According to the television interview transcript made available to the
Zimbabwe Independent this week, Mugabe said he had no fear of any kind even
if his potential successor from Zanu PF might be tempted to go after him in
a bid to score political points as has happened in Zambia.

He was responding to his interviewer, Jonathan Rooth, a senior
producer with the station on whether or not he feared leaving office on
suspicion that he might be hauled before the ICC to answer charges of crimes
against humanity committed during his 26 years in office.

"No, I have no fear of any kind, none at all. I don't see any outsider
coming here to arrest us, what for?" said Mugabe. "It would amount to
interference in our domestic affairs and this is what we have resisted all
along."

There has been an outcry from international organisations such as the
United Nations, Amnesty International and Human Rights Watch over Zimbabwe's
human rights record, which they blame on Mugabe's government.

Mugabe castigated the West for its philosophy of human rights saying
that once Western governments grow to dislike a leader they trump up charges
and find him guilty of violating human rights.

"The West is subjective in its definition, and we feel they should be
objective about it (human rights)," said Mugabe.

"If they don't like a particular leader, the best way of getting to
him is to find him guilty of violating human rights. And this is what is
happening. Once you have that kind of psyche, that kind of mentality, then
there is no objectivity about it. In the final analysis, no justice along
the way. And so we do not accept the way they interpret the whole system or
philosophy of human rights."

In what could amount to stirring further tension between Washington
and Harare, Mugabe concurred with the interviewer's question when asked if
he believed American president, George Bush should stand trial for crimes
against humanity at the ICC.

"Yes, yes. All these thousands who have died in Iraq who need not have
died at all, because at the end of the day we ask the question: 'You told
the world that Saddam Hussein was guilty of amassing weapons of mass
destruction, but later you say no, he hadn't done so. And yet in the process
so many people have died. You must be arrested for it, arraigned for it, and
tried."

Mugabe's 26-year-old regime stands accused by the international
community of flagrantly violating guaranteed international human rights
provided for under the United Nations Universal Declaration of Civil and
Political Rights to which Zimbabwe is signatory.

Cases amounting to gross violation of human rights include Operation
Murambatsvina unleashed two years ago, which according to the United Nations
left more than 700 000 people homeless and the ever contentious Gukurahundi
atrocities committed in the 1980s against the people of Matabeleland.



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Somaliland embraces evicted Zim farmers

Zim Independent


Augustine Mukaro


THE scramble for dispossessed Zimbabwean farmers intensifies in Africa
with Somaliland becoming the latest country to offer land to evicted farmers
looking for a new start.

More than 20 African countries are scrambling to snap up Zimbabwe's
commercial farmers displaced from their properties by the chaotic and often
violent land seizures in their bid to develop commercial agriculture.

Somaliland, a former British colony, broke away from Somalia over 10
years ago.

Foreign minister Abdulali Duale told Farmers' Weekly in South Africa
that he was keen to discuss agri-investment with experienced farmers from
anywhere in the world, "but I must say we would favour our fellow Africans,
of any colour, because they have an emotional stake in the continent".

"There are many projects waiting to be developed, to restock our
wildlife, open up commercial farming and rebuild the forest," Duale said. "I
know we are not one of the glamour destinations, but we do have a sound
democracy and total commitment to a new age of commercial farming. I hope
some farmers and conservationists will come and have a look at our little
country.

"We are a sovereign state with a great future. Our government and
people would be honoured to see new immigrants from southern Africa coming
to build our farm sector," he said.

Commercial Farmers Union (CFU) spokesperson Emily Crooks said although
there wasn't an official approach from the Somaliland government, a number
of overtures had been undertaken and farmers would readily accept any offers
enabling them to restart their businesses.

"As farmers we are very excited about the recognition of their skills
by other Africans states," Crooks said. "We would take any opportunities
that would allow our members to go back into faming."

Officials at CFU said the success of the farmers' venture in Nigeria
had generated intense interest from African governments keen to develop
commercial agriculture.

"The Nigerian project has opened many doors, and will continue to open
more doors in other surrounding countries with private companies and
government departments approaching us, wanting to put together similar
projects," an official with the CFU division of Farmers In Touch said.
"Countries that have contacted us include Ghana, Cameroon, Sudan, Guinea
Bissau, Benin, Central African Republic and Namibia."

The official said a team was working on getting a project similar to
the one in Nigeria together in Senegal.

"Three trips have been made to Senegal and proposals are being put
together. All parties involved are positive about this venture," he said.
Fifteen farmers and their families have already relocated to Kwara State in
Nigeria.



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... as top counsel sought to defend land reform

Zim Independent


Augustine Mukaro


GOVERNMENT is planning to hire an internationally recognised counsel
to defend its emotive land reform programme taken to the International
Centre for Settlement of Investment Disputes (ICSID) court by dispossessed
Dutch farmers.

A source who attended the first hearing last December in Paris said
Zimbabwe indicated its intention to hire a counsel and would soon notify the
ICSID.

"Zimbabwe plans to hire a counsel," the source said.

"They have been allowed to do so and will notify ICSID as soon as
possible."

The source said Zimbabwe was represented by two lawyers from the
Attorney-General's office in Harare, accompanied by two counsellors from the
Zimbabwean embassy in Paris.

The Attorney-General Sobuza Gula-Ndebele could not attend the hearing
after he was refused a visa due to EU restrictions on him.

"Chief law officer in the Attorney-General's office, Virginia Mabhiza
was the team spokesperson accompanied by a Mrs Mandimika," the source said.
"The two were joined by a Mr Hove and Mugaviri from the Zimbabwean Embassy
in Paris."

The source said concerned parties agreed that the tribunal was
properly constituted and proceeded to draw up a schedule for the case.

"We agreed that the claimants should submit their full affidavit by
March 16, 2007, to which Zimbabwe was given to June 15, 2007 to respond,"
the source said. "The final hearing has been set for October 29 to November
1, 2007, again in Paris."

If the Dutch farmers win the case, it could open the floodgates for
similar claims in international courts by white farmers of different
nationalities whose businesses were protected under Bippa agreements but
were still expropriated without compensation. Bippas are Bilateral
Investment Promotion and Protection Agreements.

The Dutch farmers argue that their properties were protected under a
Bippa in which Harare promised to pay compensation to Dutch nationals in
disputes arising out of any investments in Zimbabwe.

Zimbabwe has Bippa agreements with several EU countries, four of them
ratified by President Robert Mugabe. The trade pact compels government to
protect the investments and properties of other countries from arbitrary
expropriation.

Zimbabwe's case will be heard 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.

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.

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.



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Police won't name killer cop

Zim Independent


Loughty Dube


POLICE are keeping a tight lid on the identity of the senior officer
who gunned down a 25-year-old Bulawayo man while he was celebrating the
coming of the New Year. It has also emerged that the police have now said
they will not be held responsible for the man's death since the officer who
shot him was off duty.

Police have refused to name the police officer who shot the man,
Artwell Magagada, in the head at point blank range.

Magagada was shot when the police officer fired at a crowd of
revellers who were celebrating on New Year's eve outside a food outlet where
Magagada worked.

However, it has emerged that enraged superiors have summoned the
police officer to a disciplinary hearing expected in Harare today.

Magagada was hospitalised and kept in the intensive care unit at
Catholic-run Mater Dei Hospital in Bulawayo but he later died after he was
declared brain dead.

He was buried at the West Acre cemetery in Bulawayo on Wednesday.

Police spokesperson, Oliver Mandipaka, was curt when contacted on the
matter this week.

"Police will investigate the matter to find out what transpired before
the shooting incident, we are still investigating the matter," Mandipaka
said.

When pressed to reveal more details on the matter and to give the
identity of the police officer who pulled the trigger, Mandipaka said it was
not in the public interest to reveal such information.

"It is not in your interest to know that but that is a police issue
and we are still doing investigations," Mandipaka said.

The family of the deceased has already approached the Zimbabwe Lawyers
for Human Rights (ZLHR) to assist them to sue the police.

ZLHR chairman, Otto Saki, confirmed the latest developments.

"Our lawyers are going to represent and assist the family to take the
matter further in the courts because the police action is unacceptable,"
Saki said.

The Zimbabwe Independent has established that the senior police
officer who shot Magagada is a superintendent.

It also emerged, according to police sources, that the officer has
fatally shot two other people before the latest shooting incident.

"The man is dangerous. He was transferred from Harare in 2004 after
shooting someone before he shot another man in Bulawayo in 2005 and this is
the third man he has shot in a space of three years," said a police source.



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Reserve Bank fails to pay gold producers forex

Zim Independent


Vincent Kahiya


THE Reserve Bank of Zimbabwe has since last October failed to remit
foreign currency payments to gold producers in a development that saw gold
production plummeting to record lows in the last quarter of the year.

The situation in the gold sector is so dire that some producers who
closed for the Christmas break have indicated that they will not re-open
their mines until they receive their payments from the central bank.

Mining sources said most gold mines were operating at below 40% of
capacity owing to a myriad problems, chief among them an overvalued
currency, unsupportive monetary policy system and power outages. The failure
to pay the producers on time has added to their woes resulting in miners
cutting back production further by at least 30% in the last quarter of last
year.

The miners under the Zimbabwe Chamber of Mines, together with
officials from the Mines ministry, have since September held meetings with
the Reserve Bank to try and resolve the crisis but to no avail.

One such meeting was held last Thursday but there has not been any
development yet.

The RBZ through its subsidiary Fidelity Refineries is supposed to pay
for 50% of gold within four days of delivery, with the balance being paid
within 21 days.

"The RBZ has not been living up to this promise and in most cases is
taking up to 60 days to pay," said a an executive at a Midlands-based gold
mine. "This has serious cash flow implications for gold producers."

He added: "Most inputs have to be imported for cash as few foreign
suppliers will give credit to Zimbabwe companies. When the RBZ is over 45
days overdue, it means a gold producer has to have working capital for
consumables like cyanide, explosives, drilling spares, pump spares, fuel etc
of at least 90 days, which is near impossible in these days of tight cash
flow and high interest rates."

The gold mining companies have been brought to their knees by this
latest development. It is estimated they have lost at least 30% of their
production during the period September to December due to the late payment
of sales proceeds by the RBZ.

Last August, the RBZ increased gold miners' foreign currency retention
package from 40% to 75% but later reduced it to 67,5%. Miners have two main
options of receiving payment from the central bank. They can be paid in
local currency at a rate of $16 000 a gramme or they can opt for payment in
the foreign currency/Zimbabwe dollar blend.

Under the former arrangement, payment is effected within a week and
sometimes as early as three days. Under the latter, the value to be paid is
determined by the ruling price on the international markets at the time of
delivery.

The miners should receive their foreign currency payment within 21
days while the Zimbabwe dollar payment is usually done in four days
calculated at the rate of $250:US$1.

Gold is currently fetching about US$620 an ounce on the international
markets

It is the remission of the foreign currency that has created problems.
Miners this week said they had not in any way felt the impact of the upward
revision of the foreign currency threshold due to late payment.

Central bank governor Gideon Gono when increasing the threshold last
year said he expected gold production to increase in tandem with the new
policy. Miners have however said the sector does not operate that way.

"The RBZ harbour this misinformed opinion that by increasing the forex
retention levels, there would be an automatic increase in production," said
one miner. "For a start, we are not mushroom growers. This is a complicated
business in which policy changes like the increase in retention takes a
minimum of 24 months to take effect."



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. . buys from unlicensed gold miners

Zim Independent


Shakeman Mugari


THE Reserve Bank of Zimbabwe (RBZ) has been buying gold from informal
miners who are now under siege from government and the police for engaging
in illegal activities.

According to regulations, it is illegal for any one to buy gold from
unlicensed gold miners.

Investigations however revealed that unlicensed miners have been
selling their gold to government through Fidelity Printers, a parastatal
which falls under the central bank. The investigations show that Fidelity
does not ask to see a mining licence before accepting gold from sellers.

This is the not the first time officialdom has been involved in
shadowy purchasing of precious minerals. At the height of the diamond rush
in Marange last year, the Minerals Marketing Corporation of Zimbabwe was
buying precious stones from villagers on a no-questions-asked basis. MMCZ
only stopped buying diamonds when the illegal mining activities were stopped
by the police.

A call to Fidelity revealed that the RBZ arm is paying $16 000 for a
gramme of gold. "Just bring your gold sir, the issue about licensing will be
dealt with later. There are no questions asked," said an official at
Fidelity.

Asked whether they will not report the matter to the police, the
official said: "Fidelity just buys gold, it is the police who arrest." The
central bank has been financing small-scale miners to buy mining and
processing equipment, especially in the Kwekwe area which is the hub of gold
panning in the country.

Fidelity will then dispatch teams to those areas to buy the gold.
Those involved in the sector said the officials from Fidelity who go into
the field were not issuing receipts or any form of documentation to
authenticate their transactions with the informal miners.

Experts in the sector say some registered small-scale miners claim
licence-holders have been taking advantage of the porous system to buy gold
from unlicensed miners for on-selling to Fidelity.

Police have over the past three weeks arrested thousands of gold
panners under Operation Chikorokoza Chapera. Gold panning is however
unlikely to stop because the miners have a ready market in the form of
Fidelity.



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Patients bear the brunt as doctors dig in heels

Zim Independent


Ray Matikinye


A NOTICE stuck at the entrance tells you all is not well at Harare
Hospital.

It notifies visitors of an immediate cancellation of the traditional
morning visits to see sick relatives.

Next to it is a whimsical warning in the Shona vernacular: "Kupfeka
chibhachi chichena hutengesi" ("Putting on the white doctor's frock is
selling out") beneath a slew of sarcastic rhetoric that represents striking
junior doctors' grievances.

"Are you able to put food on your family's table? Are you able to
clothe and feed yourself?" read some of the remarks.

And competing for space on the same door is a stereotype notice
cautioning staff about having to "clock in and clock out" to register their
presence as a way of monitoring staff levels during the job boycott.

It contrasts sharply with the warning against putting on the doctor's
white dustcoat and dangling a stethoscope around one's neck.

"The money we earn is equivalent to two crates of beer which a brewery
across the road routinely doles out to its general hands," one doctor said.

Along the long corridor an absent-minded cleaner nonchalantly wipes a
spot on the edge of the corridor apparently without any intention to
complete the task.

Outside across the driveway dispirited relatives hover over a body
crumpled on a stretcher in searing mid-day heat, looking puzzled what to do
next.

Stroll into the admission block and witness much of the same.

A junior resident medical officer stands in the consulting room
doorway. He alternates between bobbing his head to register comprehension
and twiddling with his stethoscope, while the younger son of a patient
pleads: "He has been a regular patient here and has his medical records with
him, please doctor."

He is one of the few striking junior doctors who decided they should
only attend to emergency cases on a rotational basis.

A few paces from the doorway, the pleading man's brother tries to
suppress spasmodic jerks from a languid body slumped in a wheelchair.

The sick man tries to draw his son's head down to tell him something,
but the groping hand collapses into his lap in vain.

Moments earlier, the emptiness of the admissions ward at Harare
Hospital had echoed with the tearless wail of a middle aged woman who had
stomped out, too shocked to witness the tear-jerking spectacle of an equally
disposed relative.

"The doctor says he cannot help," the son reports back to a group of
relatives huddled in a corner.

As the family tries to assist the patient into the back seat of the
car, the elder brother's mobile phone rings.

He explains the situation. "We are taking him back home to Mufakose
because the doctors here are unwilling to help," he says, adding after a
long pause: "We don't have the money to take him to a private doctor."

From the thread of the conversation, the voice at the other end of the
line suggests they take the sick man to a rural hospital. "We neither have
the money nor the fuel for that. We hope and pray God will intervene and not
allow people to die because of their poverty," the man says in desperation.

Before the family leaves, they huddle again in an open prayer pleading
for divine intervention that their relative lives through the ordeal.

As they drive off, a municipal ambulance takes up the vacant parking
space. Out come two enthusiastic medics to retrieve a patient they had
brought in from Nazareth Infectious Diseases hospital.

One of the medics has wrapped plastic bags for lack of latex gloves
round his hands.

"We still don't have doctors and the people at your hospital should
know better than send their patients here," a nurse clutching a sheaf of the
emaciated patient's medical records reminds the medics.

A few minutes later two hearses from different informal funeral
parlours accompanied by a police officer each drive off too after
registering two deaths at home.

Nowhere in Zimbabwe's hospitals would one probably encounter the kind
of scene described by Axel Munthe in The Story of San Michelle, where a
surgeon, his frock spattered with blood and pus, carves up patient after
patient with the same scalpel and flings severed limbs into a pile besides a
table.

But the horror akin to medical care before the advent of anesthetic
chloroform is gradually creeping within spitting distance of that
illustration owing to a shortage of drugs, manpower and a demoralised staff.

For a ministry that flaunts its mission as "human resource management
with special emphasis on retention of staff and improving conditions of
service for health workers, improving logistics and supply management
including ensuring drugs, laboratory and hospital equipment and transport,
especially ambulance availability", a work boycott over deteriorating
working conditions has unravelled Zimbabwe's health delivery system.

Since December 21, frustrated junior doctors unfrocked themselves of
their traditional medical garb and laid down their stethoscopes in protest
over unresolved pay and other working conditions.

"We cannot live on false promises and we have realised that dialogue
with our employers has not yielded desired results over the past six
months," says Simbarashe Ndoda, one of the junior resident medical officers
(JRMO) on strike.

Ndoda stays in Chitungwiza and has to commute to Harare Hospital daily
although he is supposed to be resident at the hospital. Out of a hundred
doctors, there is only accommodation for 30. Others share available
accommodation, while five junior doctors on stand-by duty share one
call-room.

Ndoda says the Hospital Doctors Association that represents doctors
who have completed a year of internship does not represent JRMOs.

The chairman of HSB, Dr Lovemore Mbengeranwa, told junior doctors that
his board does not recognise them.

"The Health Service Board does not recognise us," Ndoda says
explaining that none of the incentives the junior resident medical officers
were promised six months ago when they resorted to similar work stoppage had
been forthcoming.

Under the present arrangement, a doctor who qualifies from the
university is obliged to undergo two years internship, divided into medics
and surgery during the first year and operations, pediatrics and anesthetic
during the second year before going on further attachment at a rural
district hospital for open practice before he can be given a letter of good
standing.

"We operate in an environment where nothing is concrete. There is no
written undertaking by our employer of the way the system operates," says
another junior doctor, Amon Severegi.

He says JRMOs are not against the internship conditions. "But one is
not guaranteed that after a year at a district hospital he or she will
receive their letter of good standing. One might end up doing the stint for
more than five years as long as the station has not achieved a full
complement of say five doctors," Severegi says.

Health minister David Parirenyatwa on Tuesday met with hospital
consulting doctors in an effort to break the standoff to the strike by
junior doctors without success.

Doctors dug in their heels while Parirenyatwa insisted that the
strikers go back to work while the government considers their grievances.

President of the Hospital Doctors Association, Dr Kudakwashe
Nyamutukwa, said on Wednesday that doctors would not return to work until
their demands for a salary hike from $56 000 to $5 million as of January.

Doctors equate the salary demand with R12 000 earned by their
counterparts in neighbouring South Africa.

"You will realise the demand is realistic considering the rate of
inflation," said a second year intern manning the doctor's recreation club
at Harare Hospital.

The junior doctor who insisted his name was immaterial said most of
his colleagues could not even afford to buy a stove.

Although he said the Health Service Board was a noble idea he likened
its lack of mandate to make concrete decisions to buying an electrical
gadget and sending it to the rural areas where there is no electricity.

"The Health Service Board has no answers to our problems and until it
is empowered to make financial decisions without resorting to dipping into
the ministry's depleted coffers I see no breakthrough," the doctor said.

A parliamentary committee on the Health and Child Welfare ministry in
October recommended that conditions of health workers be addressed as a
matter of urgency if the ministry was to accomplish health goals.

"Over the years, the earning capacity of health workers had been
eroded due to the prevailing high inflationary environment," the committee
report says.

"This has visibly frustrated professionals who cannot afford to pay
school fees for their children, cannot purchase decent accommodation and
afford decent transportation."

"Government accuses us of lack of patriotism, but I think it should
show more commitment to fulfilling its promises before it can point fingers
at junior doctors," says Severegi. He says most junior doctors are willing
to plough back the investment government put in their training by deploying
to rural hospitals provided government keeps its part of the bargain.



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Govt forces Nssa to abandon Vic Falls project

Zim Independent


Pindai Dube


THE National Social Security Authority (Nssa) has abandoned plans to
construct a multi-billion dollar shopping complex in the resort town of
Victoria Falls after government vetoed the project.

Businessdigest is informed that government has now instructed Nssa to
use funds earmarked for the shopping complex towards the construction of
facilities in Beitbridge in anticipation of increased tourist traffic during
2010 soccer World Cup to be hosted by South Africa.

Philemon Chereni, the Nssa public relations manager, confirmed that
government had ordered them to suspend construction of the Victoria Falls
complex.

He also confirmed that the ministry ordered Nssa to focus on
constructing a complex in Beitbridge in anticipation of the 2010 World Cup.

"The government has ordered us to suspended the construction of the
complex in the resort town and to re-directed our resources to Beitbridge
complex in preparation of 2010 World Cup," said Chereni.

Nssa is a compulsory pension scheme falling under of Public Service
ministry.

Government is hoping that the country, facing its worst economic
crisis in history, characterised by acute foreign currency shortages, will
benefit from South Africa's hosting of the World Cup through increased
tourist traffic into the country.

No official comment could be obtained from Public Service minister
Nicholas Goche and his deputy Abednico Ncube.

The construction of the complex in the resort town, which was mooted
some five years ago, had been affected by a number of problems, including
foreign currency shortages.

Last year construction had to be shelved after the Administrative
Court nullified the awarding of a tender to construct it to a Chinese
company following an outcry by other companies that tender procedures were
not followed.


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Banks up minimum lending rates

Zim Independent


Paul Nyakazeya


COMMERCIAL banks have increased their minimum lending rates (MLR)
after the central bank quietly hiked the key accommodation rate at the end
of December.

The central bank, which was expected to review the accommodation rate
during the monetary policy review later this month, increased the key rate
to 500% and 600% for secured and unsecured borrowing respectively, from 300%
and 350% which had been announced at the last monetary policy review in
July.

The accommodation rate is the rate at which financial institutions
borrow from the Reserve Bank to cover daily shortfalls, and determines all
other rates on the money market.

FBC Bank, ZABG and ZB Bank, formerly Zimbank, increased their MLRs to
500%, from 300%, 400% and 300% respectively.

Kingdom and NMB increased their MLRs to 400%, from 295% and 300%
respectively. Metropolitan Bank's MLR went up to 550%, from 300%.

Barclays Bank, which had increased its lending rates to 500% from 375%
on December 21, went against the tide by reviewing the rate back to 375%
this month.

Stanbic Bank increased its MLR to 450% from 350%.



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Rate not attractive enough for investors, say analysts

Zim Independent


Dumisani Ndlela


ANALYSTS this week hinted at extensive support for the central bank's
$160 billion bills from pension funds and insurance companies but said the
fixed coupon rate on the instrument was too low to attract other
institutional investors

Pension and insurance funds are compelled by law to have a determined
percentage of their portfolios in prescribed assets and central bank
governor Gideon Gono last year called on the sector's regulatory authorities
to compel these institutions to meet prescribed asset levels.

Market watchers said the majority of investors were still undecided
over the investment course to take this year, and were still awaiting Gono's
monetary policy statement for a cue.

However, the tender for the bills, released to the market on Friday
and whose take-up started on Monday, had already sent punters scurrying to
the stock market after analysts said it provided the most credible cue on
the direction of interest rates.

"This indicates the governor's desire to keep rates low," an asset
manager said, referring to the coupon rate on the bills. "He (governor Gono)
is unlikely to move rates higher than what he is offering on the bills when
he presents his monetary policy statement."

The bills, three-year government of Zimbabwe local registered stock,
will be listed on the Zimbabwe Stock Exchange (ZSE), with interest being
charged on the general revenue account and assets of the country, are meant
to raise funds to finance government capital projects.

Other analysts however said support for the bills was likely to be
scant.

"We do not think the paper will garner enough market support to
negatively affect money market liquidity," an asset management firm said in
a weekly update to investors.

The coupon rate for the bills, which have a prescribed and liquid
asset status, is fixed at 350%, 250% and 100% over 2007, 2008 and 2009
respectively.

The bills are acceptable as collateral for repo and overnight
accommodation by the central bank and are redeemable at the Reserve Bank of
Zimbabwe (RBZ) on maturity.

Interest on the bills will be paid half-yearly on dates to be
indicated on the stock certificates by remittances to the credit of the
investors' bank accounts.

"The stock will be redeemed at par in the currency of Zimbabwe.The
stock register may be closed as regards transfer of amounts of this stock
for a period of not more than thirty days immediately preceding the
redemptive date," the RBZ said in a public notice accompanying the tender.



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Gold mining falls to 'pathetic levels'

Zim Independent


By a special correspondent


IT is no secret that the Zimbabwean mining industry has been shrinking
over the past six years and has not witnessed any significant new investment
other than in the platinum and diamonds sectors. The gold industry has been
particularly affected with production having fallen from a high of 29 tonnes
per annum at its peak to the current 12 tonnes expected to have been
produced in 2006.

Why has the gold sector contracted so dramatically when the platinum
sector has been expanding? Recent press and company market briefings
indicate that the two current platinum producers, Zimplats and Mimosa, have
systematically increased production and new investments over the past six
years and will continue to do so in the near future. A third producer, Unki
Platinum, under Anglo has committed and started its capital investment to
bring another mine into production in the next few years. This is in direct
contrast to the Zimbabwean mining industry in general and the mining sector
in particular.

The answer is very simple. The platinum industry enjoys a fiscal and
monetary regime far superior to any other sector of the Zimbabwe economy.
The platinum industry is allowed to retain 100% of its foreign currency
earnings offshore, and only liquidates into the Zimbabwe dollar as and when
it so wishes.

The mining industry is a capital-intensive industry and typically it
takes a long time before any profits can be realised. Most of the capital
required in this industry is forex-based as most of the items are imported.
In addition, most of the consumables in the industry are imported and
typically, up to 75% of a mine's input costs including capital are imported.

It is a known fact that although gold producers operate in an
environment of high capital requirements, long lead times to production,
high recurring foreign exchange requirements, they have been subjected to
the worst monetary regime of any other exporter in the country.

Indeed, the anomaly whereby gold producers enjoyed only 40% retention
of their earnings in US dollar, whilst the majority of others enjoy 70%,
whilst simultaneously requiring high foreign exchange retentions to sustain
and grow operations, has contributed to the fall of production and new
investment in the gold industry.

Until August 2006, gold producers were required to surrender 60% of
their forex earnings to the government at a sub-economic exchange rate. The
40% forex retention was hardly enough to take care of working capital
requirements, leaving virtually nothing for critical capital such as
exploration, equipment, etc.

What is the typical cost of mining gold in Zimbabwe? No two mines have
the same cost profile. For simplicity, one can take two typical examples
which are an open pit, shallow to medium depth ore body, heap leach
operation (category one) and an underground deep, narrow ore body with a
long strike that uses standard crushing, milling and leaching technology
(category two). These costs have also been exaggerated because of the
overvalued currency to some extent, but essentially represents the typical
costs of a gold miner in Zimbabwe. Table I shows data for the two typical
example.

One may ask, if the costs of gold production are so high, how gold
mines have survived over the years when gold prices have been below US$400
per ounce. The answer is simple; when prices are high, most mines undertake
their long-term capital investment and when prices are low, capital
expenditure is brought to a minimum.

Based on the above figures, one can easily determine the forex
retention level required by gold producers to maintain and grow operations
at different gold prices and table II shows the retention levels required.

Therefore, based on these numbers, the operational retention as a
percent of revenue needs to be between 51% and 68% for category one and
between 46% and 61% for category 2. The capital retention as a percent of
revenue needs to be between 19% and 25% for category one and between 25% and
32% for category 2.

The total retention to ensure the continued operation and increased
exploration and development of the mines is thus between 70% and 93 % for
both categories of mines. Therefore even at the higher gold prices, a
retention of at least 70% is required. These figures include a percent for
return on capital and management fees of between 4% and 5%.

Over the years when gold producers have been allowed to retain only
40% of their forex earnings, it stands to reason that no capital expenditure
has taken place. No new exploration, development ramp up and equipment have
been done by gold miners. They have been preoccupied with just survival to
worry about replacement let alone expansion capital.

What the authorities do not realise is that whatever capital a miner
does not do today, he will have to do it in future. You cannot reap where
you did not sow. In order to maintain production, a miner must replace what
he mines today through exploration and development and equipment has to be
renewed at appropriate times. To increase production, a miner must carry out
additional exploration and investment in new equipment.

In October last year, gold producers were summoned to a meeting with
the governor of the RBZ and the Minister of Mines. The governor berated gold
producers for not having increased production despite the retention having
been increased from 40% to 75% (and then down to 67,5% later) since August
2006. The miners responded that it was impossible to see the effects of the
increased retention in such a short period of time as policy changes in the
mining industry take a minimum of 24 months to take effect.

Obviously to increase production, capital has to be spent, development
and exploration has to take place and whatever capital work functional was
not done during the period when the authorities were milking the forex from
gold producers would have to be done now. It was obvious from this meeting
that there seemed to be a lack of trust between the miners and the RBZ and
the expectations that gold production would increase in the short-term were
misplaced.

The issue of the exchange rate at which exporters surrender their
forex to the RBZ has also contributed to the slump in gold production. Since
August 2006, the exchange rate has been fixed at $250:US$1. Inflation has
been going up by 20% to 30% per month since then. Wages and salaries in the
industry have gone up dramatically and all costs have been going up and yet
the exchange rate has been kept at an unrealistic level.

Essentially the revenue exchange rate is set at $250:US$1 while the
cost exchange rate is the parallel rate. No business can operate like that
for too long and sooner or later the impact will be apparent to everyone. It
must be remembered that the exchange rate has largely been fixed for the
past four years, which has driven all exporters to be unviable, thus driving
many of them out of business.

More shocking in the gold industry are developments since September
2006. The RBZ is supposed to pay for 50% of gold deliveries within four days
of delivery, with the balance being paid within 21 days. The RBZ has not
been living up to this promise and in most cases is taking up to 60 days to
pay. This has serious cash flow implications for gold producers. Most inputs
have to be imported for cash as few foreign suppliers will give credit to
Zimbabwe companies. When the RBZ is over 45 days overdue, it means a gold
producer has to have working capital (consumables like cyanide, explosives,
drilling spares, pump spares, fuel etc) of at least 90 days, which is near
impossible in these days of tight cash flow and high interest rates. The
gold mining companies have been brought down to their knees by this latest
development. It is estimated that gold mining companies have lost at least
30% of their production during the period September to December due to the
late payment of sales proceeds by the RBZ.

It is difficult to understand the motive behind this failure to pay
gold producers on time; surely, by paying on time, gold producers are able
to produce more gold and therefore earn the country more foreign currency.
Representations made to the RBZ and the Ministry of Mines, which is
responsible for administering both the Mines and Minerals Act and the Gold
Trade Act, have yielded no positive result. It is now near impossible to
plan procurement of inputs and production at the operations. In the
meantime, companies have to meet fixed costs like wages and salaries,
pumping and general maintenance even when production is curtailed through no
fault of theirs.

Mining companies have also been inundated with officials from the RBZ
and the ZRP. There is a proliferation of people with not much mining
knowledge visiting operations and disrupting operations as a lot of
management time is spent on these visitors. One big company was approached
by the ZRP who wanted to see the specifications of the locks to the elution
tanks so that they (ZRP) could buy their own locks and that elution would
only take place in the presence of ZRP officers.

Recently the government engaged an international inspection company to
audit gold producers to ensure that producers do not side market gold. The
gold industry welcomed this move as it will show once and for all that gold
leakages are not from formal producers, but are from the korokozas. Chamber
affiliated mines are unlikely to side market gold due to the risks
associated with it; that would jeopardise a whole investment worth millions
of US dollars for a few pieces of silver. The reduction in production
witnessed over the years has more to do with viability in the industry than
side marketing by formal producers who are mostly Chamber of Mines
affiliated. The industry has welcomed the clampdown on illegal mining as
this is good for the country in terms of the environment and the eradication
of the black market for gold.

It is crazy that gold producers are on their knees when gold prices
are at historically very high levels. Gold mining in other countries has
taken off, but in Zimbabwe it has fallen to pathetic levels.

Government and RBZ officials need to work closely with industry to
ensure viability and growth. The Ministry of Mines has been supportive to a
very large extent, but there seems to be difficulties at the RBZ.

* The author is a large-scale indigenous gold miner.


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CSC revival attempts a waste of funds

Zim Independent


Augustine Mukaro/ Shakeman Mugari


POURING money into the Cold Storage Company (CSC) in conformity with
President Robert Mugabe's political machinations could turn out to be
another of government's futile efforts at economic revival unless key
problems affecting the agricultural sector are addressed.

An angry Mugabe in December told a rally that the Marondera abattoir -
one of the CSC branches that have been closed for years - should be revived
immediately.

He directed Minister of Agriculture Joseph Made and Finance minister
Herbert Murerwa to ensure that the abattoir was opened.

With feigned enthusiasm, hordes of ministers together with top
government officials, rushed to tour the plant, injecting billions of
dollars to kick-start the revival programme.

Suddenly there was renewed interest in the affairs of the abattoir,
which had been shut down for the past four years. In their customary style
ministers started making wild promises.

Made, who watched haplessly while CSC collapsed, promised to bring in
the Department of Veterinary Services to help in the speedy implementation
of the slaughter stock resuscitation programme.

Already $5 billion has been provided to purchase slaughter stock,
which Made said was the beginning of the revival of the CSC which started
going down the tubes as early as 1996.

Murerwa said a further $5 billion was going to be poured into the
Marondera abattoir for it to reach full capacity.

Analysts however said giving money to CSC or any other troubled state
company could be a waste of taxpayers' funds unless the key problems are
addressed.

They said all parastatals are collapsing because of corruption,
mismanagement, government interference and patronage, all of which have
nothing to do with lack of money.

They said this was another sign that government still believes,
erroneously so, that throwing money at troubled parastatals will solve their
problems. Money has never been a problem for parastatals and should
therefore not be used as a solution for their perennial woes, the analysts
said.

The period from 2004 to 2005 when the central bank poured more than
$70 billion into parastatals clearly indicates that these companies cannot
be turned around even with all the money in the world.

Over the past two years there has been a mad rush to inject billions
into Zisco, National Railways of Zimbabwe, Air Zimbabwe and Zesa. Other
parastatals like ZBC, CMED and Zupco also fed from the treasury. In all the
cases the results have been the same - failure.

"It's clear that these parastatals do not need cash but a complete
overhaul of their structures and the way they are run," said an economist
with a local bank. "All the state companies have received money from the
central bank but they are failing to perform."

Even after getting money last year, CSC still failed to turn around.
The economist said CSC problems are directly linked to the chaotic land
reform which destroyed the national herd as new farmers went on a slaughter
spree after getting onto the farms. The results have been disastrous for CSC
and the whole agricultural sector.

CSC's problems seem to have started as early as 1996 when the company
started losing its market share after its monopoly as the only meat
processor was removed.

From 1988 to 1996 CSC's market share slumped from about 88% to 45%.
Over the past decade its market share has slumped further as it battles
pressure from private abattoirs that are run commercially and efficiently.

Zimbabwe used to earn around US$38 million annually from the 9
100-tonne European Union (EU) beef quota before the contract was suspended
in 2001 due to the country's failure to control stock diseases like
foot-and-mouth and anthrax.

Beef exports accounted for about 4% of the country's total foreign
currency earnings.

The launch of the land reform programme six years ago plunged the
agricultural sector into chaos resulting in the country's national herd
plummeting by a massive 82% from 1, 4 million cattle as of 2000 to less than
250 000 at present. This decline coupled with the uncontrolled cattle
movement at the peak of land reform resulted in the industry falling way
below EU standards.

The situation was worsened by the recurring foot-and-mouth disease
outbreaks which government has failed to eradicate over the past five years.
The FMD recurrence thwarted the country's effort to resume its lucrative
exports to the European Union which in turn starved government of the
much-needed forex to fund the restocking of the depleted herds on its
ranches.

Beef exporting expert and former CSC general manager Eddie Cross said
piecemeal solutions and pouring money into CSC would not remedy or even
sustain the parastatal's life unless fundamentals were addressed.

"CSC problems are institutional and trying to deal with them abattoir
by abattoir would be a wrong approach," Cross said. "The collapse of CSC was
mainly caused by poor policy decisions by government and failure to
administer the entity on commercial lines resulting in producers shunning it
for private abattoirs."

Cross said CSC over the years was sustained by its export proceeds,
which were very profitable.

"Domestic markets and the day to day running of CSC have always been
heavily subsidised by exports so the collapse of commercial agriculture
triggered the collapse of the parastatal," he said. He said commercial
farmers used to supply 97% of the slaughter stock while 3% came from
communal farmers.

"The collapse of commercial agriculture in the country transferred
cattle into the hands of the communal farmers where cattle are treated as
measurement of wealth and are not disposed of easily," he said.

"That development reduced slaughter stock from 750 000 animals per
year to around 25 000 animals over the period, pushing up demand and
prices," Cross said.

Beef experts said the chaos in the agricultural sector has resulted in
the industry falling far short of meeting EU standards, particularly the
system of identification, registration and labelling of bovine animals.

"The first requirement for all operators and organisations marketing
fresh or frozen beef or veal is to label it with individual traceability
codes which may be the identification number of the animal from which the
meat is derived or an identification number relating to a group of animals,"
the expert said.

Experts said continued farm seizures and equipment vandalism of
facilities have resulted in producers failing to maintain slaughterhouses
and de-boning plants in shapes adhering to export standards. The situation
has been exacerbated by the uncontrolled movement of cattle and wildlife,
resulting in FMD outbreaks that have forced the suspension of beef exports.

In their latest report Cattle Producers Association (CPA) FMD
continued to recur over the past five years because of uncontrolled
movements of cattle.

"FMD continues to haunt us," the CPA report says. "Veterinary services
ability to source vaccine from other countries is directly related to the
availability of foreign currency to pay our debts and this has been a major
problem. However, vaccination is not the total solution to FMD control and
until the fundamental issue of illegal cattle movement is addressed,
Zimbabwe will continue to see the recurrence of FMD."

EU compels all beef exporting countries to introduce the same system
of identification, registration and labelling, together with provision for a
parallel voluntary system.

The EU also requires the member states to label their products with an
approved number of slaughterhouse and de-boning plants, date of slaughter,
category of animal and the ideal maturation period.

CPA officials said the chaos in the agricultural sector has destroyed
the internationally acceptable beef exporting facilities and has made the
FMD uncontrollable in most of the affected areas.

"I am sorry to say that FMD has still not been brought under control
in some areas," a CPA official said. "Vaccine has been in short supply to do
vaccinations consistently but it is also recognised that vaccination alone
does not control FMD. Only restrictions on movement can achieve this."

He said the continued farm seizures and harassment and eviction of
farmers from their properties have forced producers to slaughter large
numbers of cattle including pedigree animals genetically adapted to the
environment.



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Midzi says lacks clout to handle miners' case

Zim Independent


Shame Makoshori


A DISPUTE over the confiscation of small-scale miners' equipment and
closure of their operations by the police has been referred to
Vice-President Joice Mujuru's office after Mines minister Amos Midzi made a
veiled admission he had no clout to intervene on the miners' behalf, mining
industry sources said this week.

The admission by Midzi is said to have been made during his meeting
with small-scale miners' representatives on Thursday last week.

Sources who attended the meeting told businessdigest that the miners
accused government of double standards.

On the one hand, government was licensing the miners to operate
small-scale mines, on the other, it was arresting the same miners and
closing down their operations for alleged gold smuggling by unregistered
gold panners.

Small-scale miners' representatives, said to have been highly charged
during the meeting, had lambasted government for hypocrisy, in that while it
publicly pledged to promote the development of the small-scale mining sector
through its indegenisation policies, it was at the same time destroying
enterprises created by long-suffering citizens in that spirit.

"It was an acrimonious meeting. The minister decided to refer the
burning issues to acting President Joice Mujuru," a source said yesterday.

Police last month launched a controversial programme dubbed Operation
Chikorokoza Chapera in what they alleged was a bid to stop illegal gold
panning and rampant gold leakages in the country.

Zimbabwe Miners Federation president, George Kawonza, told the
Zimbabwe Independent last week that the organisation was contemplating
taking legal action against government if police continued arresting
registered
miners.

"We support fully the eradication of gold panning in this country but
for legally licensed miners to be harassed in this manner is unacceptable,"
Kawonza said.

Police have, however, vowed to continue with the operation which has
so far resulted in the arrest of more than 20 000 gold panners and about 250
registered small-scale gold miners.

Businessdigest understands that Midzi is scheduled to hold a meeting
with Mujuru to discuss the dispute, said by analysts to have the potential
to further reduce official supplies to the central bank, the sole buyer of
gold in the country through subsidiary Fidelity Printers.

Midzi could not take businessdigest's questions yesterday, saying he
was in a meeting.

Last week, police destroyed millions of dollars worth of mining
equipment in the crackdown but most small-scale gold miners argued that they
supplied gold to Fidelity Printers.

But the police have said they were not shutting down any mines but
were arresting people who were committing crimes.



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Careerist mindset abets Zanu PF rule

Zim Independent

Comment


THE New Year has opened with one of the MDC factions raising an early
warning about the obstacles that lie ahead. In his New Year message, Arthur
Mutambara said there was no alternative to unity among democratic forces if
they wish to make an impact on Zimbabwe's political scene.

The challenge to opposition forces was both a wake-up call as well as
a possible requiem. He said it was puerile for the opposition party to hope
that Zanu PF would author its own death as has been much talked about
following failure by the ruling party to pass any resolutions at its
December people's conference and divisions over President Robert Mugabe's
plans to extend his tenure by two years to 2010.

Mutambara at the same time said if the opposition factions failed to
cooperate "as a matter of urgency, the people of Zimbabwe must reject them
completely and develop other alternatives".

We found it salutary that the message comes early in the year to give
all democratic forces enough time to set out and publicise their agendas. It
is also important that Mutambara realises that no leader is indispensable
and that all their decisions must be informed by the national interest over
the quest for personal glory.

What is not clear is how the other faction led by Morgan Tsvangirai
views the issue of a united front.

What however has emerged since the acrimonious split of the MDC in
October 2005 is that the party has been greatly weakened to the obvious
advantage of what should have been their common enemy.

Results of last year's rural council elections made this evident
enough when the party failed to dent Zanu PF's predominance in the rural
areas. While the two factions have continued to feud over who is the real
MDC and the leader of the opposition, Zanu PF has been setting the agenda on
national discourse.

What has been most discouraging to opposition supporters is the lack
of action throughout the whole of last year. This was despite threats of
decisive action against President Mugabe's regime. This was despite a
deepening political and economic crisis for which Zanu PF appears unable to
offer remedies of any sort.

As we enter the New Year, Zanu PF has already set the national agenda
over an issue which should have been confined to the party - Mugabe's
successor and how this is now being linked to the harmonisation of all major
national elections in the future. There is universal agreement across the
political divide that Mugabe has become an albatross around the nation's
neck and the biggest obstacle to any immediate economic revival. Yet the
forlorn hope that a significant number of Zanu PF MPs will vote with the MDC
to block a constitutional amendment to give legal effect to Mugabe's
manoeuvres is no more than wishful daydreaming.

The MDC's reaction to these plans has been very feeble, hoping against
hope that Zanu PF would roast itself because there are some in the party who
have finally seen the light. There were similar pious hopes that there would
be a mass exodus when former Zvishavane MP Pearson Mbalekwa left Zanu PF to
protest the brutal execution of Operation Murambatsvina in 2005.

Once he was out in the cold the rest made tactical retreats. To
imagine anything dramatic over Mugabe's exit is naïve and foolhardy. That is
until the opposition MDC demonstrates that it is strong, viable and can
offer an alternative shelter to those who are tired of Zanu PF's misrule. If
this sounds like political opportunism it is because we are talking about
political prostitutes in both parties.

There are few who have a single principle they can advertise as the
reason why Zimbabweans should vote for them.

This is evident among careerist officials in the two MDC factions
where talk of unity poses a serious threat to their livelihoods. Each one of
them thinks about their position in the party as a form of employment, not a
national duty that can be surrendered to others. There has been talk that
while the leaders have been well disposed towards unity, their underlings
fear being cast by the wayside.

While Mutambara's call for unity among democratic forces is most
welcome to Zimbabweans who are frustrated by the current paralysis, its
success will largely depend on how the MDC resolves internal uneasiness by
officials who fear losing their plum sinecures and the manifold benefits
they derive from posturing as fighters for freedom.

As we have said in the past, merely standing on pedestals and calling
Mugabe a dictator is not enough to change Zanu PF's destructive policies.
This is because there are thousands of others who make a living by propping
up the establishment. Whether the MDC is up to the task of shifting the
balance of political forces this year is still to be seen. That starts with
the party putting its house in order and setting a convincing agenda rather
than waiting for the succession crisis in Zanu PF to give it a boon.



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Where did misinformation originate MIC?

Zim Independent

Muckraker




WE were intrigued by a statement carried in the Herald last Thursday
from the Media and Information Commission on Trevor Ncube's court case which
has attracted widespread international attention.

Ncube is fighting to have his passport renewed while the
Registrar-General's office claims that he is not entitled to Zimbabwean
citizenship because his father was born in Zambia.

Ncube was born and raised in Zimbabwe.

The MIC released a statement saying it was "outraged by a campaign of
disinformation originating from Ncube's own papers but circulated mainly
through Internet sites in which the writers suggest that the commission is
somehow behind the case."

The MIC denies this saying it only learnt of Ncube's difficulties
through the press.

Perhaps the commission could tell us which of Ncube's papers
"originated" the story of Ncube's passport difficulties? We are aware of a
story appearing in the Herald of December 30 headed "Ncube contests loss of
Zim citizenship". But there is no evidence of a story appearing in any of
Ncube's papers before that date. The Mail & Guardian covered the case in its
issue of January 5.

We would hate to think newspapers are being falsely accused in this
instance. Perhaps we could have some clarification from the MIC so we are
clear on exactly where the "misinformation" came from!


And still on the subject of the MIC, is it appropriate for the
commission's chair, Tafataona Mahoso, to use his column in the Sunday Mail
to abuse journalists in the independent press as he did in the case of the
Financial Gazette's Mavis Makuni last Sunday? He should make a much greater
effort to avoid any comment that may reflect poorly on the professionalism
and impartiality of the commission he heads.

He should make up his mind: either he functions as a regulator the
media can respect or he remains as an unbalanced and vitriolic commentator
in the state-run press. He cannot have it both ways.

If international press reports conclude that the Zimbabwean
authorities are preparing the ground for the closure of the Zimbabwe
Independent and Standard, that may have something to do with Zimbabwe's
record under Aippa in this regard.

And if anyone is in any doubt about Mahoso's balance, let us just note
that in last weekend's edition of his African Focus column he accused the
Financial Gazette of ignoring his claim that American occupation forces in
Iraq murdered Saddam Hussein's sons, assassinated his defence lawyers, and
forced presiding judges to resign "until they got one whose judgement was a
foregone conclusion".

Ironic isn't it that an apologist for the Zanu PF regime can accuse
authorities of forcing judges to resign until they got one whose judgement
was a foregone conclusion!

But that aside, the latest hefty hikes in registration and
accreditation fees by the MIC should be enough to demonstrate that this is
not a regime concerned with sustaining journalism.


Still on the subject of professionalism in journalism, it was
interesting to note that in its report on the MIC statement on Ncube's
passport wrangle, the Herald managed to slip the following paragraph in:
"Ncube's father is Zambian while his mother is Zimbabwean."

That is of course one of the issues under examination in the courts.
But the Herald declared it as fact.


One of the main charges critics level against Zanu PF is its abuse of
power. An illustration of that abuse was on parade at the party's Goromonzi
conference where it was proposed that taxpayers should pay for Zanu PF's
failing propaganda machine. The party should appoint information officers to
be paid by government to counter news from foreign-based radio stations
beaming into Zimbabwe, it was proposed at a meeting of the information and
publicity committee.

A member of the committee, Kariba MP Shumbayaonda Chandengenda, said
the party should adopt a similar scheme to that used in the case of local
government promotion officers whose major task was to promote the party in
rural areas while on the state payroll.

"Zanu PF must revive that strategy because we have areas where rural
people listen to foreign radio stations because our own ZBC transmission
does not cover remote areas," Chandengenda said.

"We have found it difficult to convince the people there of government's
development thrust aimed at improving their lives on the basis of the news
bulletins they receive from foreign stations on donated radios."

So there you have it. People no longer believe what they are told by
Zimbabwe's Goebellian broadcasting system because they have access to other
sources of information.

Muckraker has a suggestion. In 1930s Germany the broadcasting
authorities produced a cheap household receiver called the Volksempfenger
(people's receiver) which was the sole instrument allowed because it could
not pick up foreign broadcasts.

"All Germany hears the Fuhrer on the Volksempfenger" was the Ministry
of Propaganda's selling pitch.

Already Zimbabwe's Nazis are jamming foreign broadcasts. But still the
people don't believe their propaganda, it would seem. Hence the plan to
recruit information officers whom Webster Shamu said must be "well-drilled
party cadres". They needed to be thoroughly vetted so government did not
recruit people hostile to the ruling party, he said.

At the same meeting committee members wanted to know why permanent
secretaries were not present at the conference. They also needed vetting,
they said.

Secretary for Information, George Charamba, was however present where
he helped party information bosses, including Shamu, Ephraim Masawi and
deputy Information minister Bright Matonga, answer questions from members.

The members proposed the vetting process should start with Charamba.
But senior party officials came to Charamba's defence saying the top brass
knew where he was coming from. He was after all the president's spokesman.


Word of advice to our colleagues in the state media. If you continue
to insist that Kofi Annan "expressed his willingness to have sanctions
scrapped" when his office has denied the claim, and that southern European
states "insist that illegal sanctions should go" when they have said no such
thing, you will all be in for a huge disappointment come February.

This is a case of the wish being father to the thought. For the EU to
lift sanctions and thus reverse its "common position" on Zimbabwe, there has
to be clear evidence that Harare has restored the rule of law, including the
independence of the judiciary, put an end to arbitrary arrests, and brought
to justice notorious state officials accused of killing opposition activists
in 2000.

Contrary to the deceitful propaganda the state puts out, the sanctions
were not imposed in response to land reform but followed the expulsion of
Pierre Schori who headed the EU team monitoring the 2002 presidential poll.

If state journalists persist in cultivating the myth that sanctions
are a response to land reform and that EU governments only maintain them
because of "British arm-twisting", how will they explain to the Zimbabwean
public that they were misled when there is no change in the common position
next month?



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Presidential economics detached from reality

Zim Independent



By Eric Bloch


IT has become traditional that, at the end of each year, President
Robert Mugabe delivers a State of the Nation address shortly prior to
departing for vacation in distant holiday destinations - undoubtedly those
as also accord the First Lady great opportunities for shopping!

Of course, it is not only traditional for the First Family to travel
at year-end. For decades, hundreds of thousands of urban dwellers travel to
visit families in their traditional rural homelands.

However, 2006 witnessed a partial departure from tradition. While the
presidential party could still travel to the Middle East and the Far East,
presumably using scarce foreign exchange, many could not afford the
ever-escalating bus fares to Gokwe, Nkayi, Goromonzi, Buhera, Nyika, Mwenezi
and the like.

Despite the latter, unfortunate, departure from tradition, the same
cannot be said of the 19th State of the Nation address. That address
demonstrated a total absence of recognition for realities, or a pronounced
detachment from them.

Until the president, his ministers and the entire governmental
hierarchy are prepared to recognise facts, admit to them, and effectively
address them, Zimbabwe's economy will continue to decline, the pronounced
widespread poverty and misery will become evermore intense and economic
recovery will become increasingly distant.

At the outset of his address, the president yet again claimed: "The
underperformance of the economy we are now turning around is largely a
product of the illegal overt and covert sanctions imposed on us by Britain
and her allies, for daring to reclaim our land."

When will Zimbabwe's government be, albeit belatedly, prepared to
recognise that it has destroyed the economy?

It did so by embarking upon a programme of "compensation" to war
veterans (actual and pseudo) far beyond the nation's means.

It did so by recognising a critical need for land reforms, but then
arrogantly, unjustly, inhumanely, incompetently and catastrophically
embarking upon a grossly destructive programme of land reform, instead of
one that could have been nationally beneficial and in the interests of
Zimbabwe's people.

It did so by casting out the almost worldwide efficiency of
market-driven economic principles and instead espoused and enforced those of
command economics, which have virtually never succeeded anywhere.

It did so by prodigious overspending, far beyond its means.

It did so by making Zimbabwe a near international pariah, resorting to
diabolic oppressive actions such as Operation Murambatsvina, endless
demonising with false allegations the very countries as would befriend
Zimbabwe, and creating an appallingly unconducive investment environment.

Compounding this, the government has by now totally deluded and
convinced itself that Zimbabwe is the victim of diabolical international
sanctions (described as "illegal", which is childish in the extreme, for
even if the sanctions exist, they would not be in breach of law!).

The reality is that Britain and its allies still trade with Zimbabwe,
the balance being in Zimbabwe's favour, permit their nationals to invest in
Zimbabwe, although few are now disposed to do so, do not bar travel to and
from Zimbabwe and, in fact, Britain's largest airline still flies to
Zimbabwe, and Britain still provides Zimbabwe much humanitarian aid. These
are "sanctions"?

The government is also blindly determined to deny that Britain and its
allies have always, since Independence, supported the principle of land
reform in Zimbabwe. Britain provided many millions of pounds for the state
acquisition of land after Independence, and has intimated willingness to
provide further funding.

Britain has made it clear, however, that it opposes injustice to white
farmers, theft and vandalisation, abuse, disregard for international law,
contempt for human rights, nepotistic allocation of land, destruction of
agriculture and, thereby, destruction of Zimbabwe.

Equally detached from reality is the contention that the economy is
turning around.

How on earth can that be, when inflation continues to soar upwards at
a galloping pace, when the overwhelming majority of the population is
struggling to survive on incomes far below the poverty datum line, when the
economy is still contracting, having shrunk more than 40% in the past six
years, when Zimbabwe is endlessly reliant upon international food aid, when
the energy-generation, water supply and other essential infrastructural
resources are unable to meet national needs, and foreign currency is so
scarce that the country cannot
even meet the needs for antiretrovirals?

The hard fact is that, although economic turnaround remains a very
real possibility, if approached positively and realistically, that
turnaround has not yet commenced, and a governmental metamorphis of thought
and factual recognition is a prerequisite for it to commence.

In contradistinction to such a transformation, the president claimed
that "ingenuity and pragmatism . . . have contributed to the home-grown
programmes aimed at rejuvenating" the economy, and that the National
Economic Development Priority Programme (NEDPP) is an example thereof.

The president contended that NEDPP "prioritises implementation of
quick response and high sectoral impact projects, and is the major launch
pad for the various current turnaround programmes".

However, Zimbabwe is yet to see that this is anything other than a
mirage. After a year, nothing substantive has emanated from NEDPP (other
than much talk), the economy continues its downhill momentum, and the
government has announced an extension of the time-period of NEDPP,
undoubtedly because nothing has been forthcoming from it, other than many
contentions to the contrary.

The president reiterated that "the recent inauguration of the
long-awaited 99-year leases constitutes an important milestone in the
evaluation of our agrarian reform as it gives security of tenure, which we
hope, in turn, will leverage more resources into the development of the
agriculture sector".

Unfortunately, this is not so. The leases do not give security of
tenure, for they include numerous provisions enabling the government to
rescind them (apart from which, having previously changed the law to enable
it to expropriate land, what guarantee is there that the government won't do
it again?).

And the prospects of leveraging more resources are zero, for the
leases accord lenders no collateral security whatsoever. Unless, and until,
the government finally appreciates this fact and strives to reverse the
immense damage it has done, the agrarian reform will continue to be negative
and Zimbabwe's lot will only worsen more and more.

Still on the agricultural issue, the president claimed that in 2006
"the majority of our people this year were generally self-sufficient in
relation to their staple food although imports were still needed to ensure
greater food security up to the middle of next year".


However, in 2006 Zimbabwe had to import over a million tonnes of maize
and several hundred thousands tonnes of wheat. Some was paid for by
international generosity, but much had to be paid for with critically scarce
foreign exchange resources.

And it is already clear that, in 2007, Zimbabwe will have to import
more than 900 000 tonnes of maize. At this very time, maize is in extremely
short supply, and when it is available, many cannot afford it.

Space constraints preclude addressing many of the other misconceptions
in the State of the Nation address (although possibly so in a future
column).

Particularly disturbing, however, was the address's concluding advice:
"Let us desist from ivory tower theorising, and better still, from being
long on critique, but short on prescription."

That was really illustrative of the old maxim of "the pot calling the
kettle black", for almost all of the address was clearly "ivory tower
theorising", in total disregard for actualities. It was very "long in
critique" in trying to attribute blame to others, and the only prescriptions
that it contained are likely to kill the patient.

Zimbabwe's economy can recover and might have a great future, but only
if those in authority are prepared to accept that they do not possess
infallibility that those who disagree with them are not necessarily enemies,
and that policy changes can be evidence of maturity and of good governance
rather than of prior error and admission of fault, although such admission
is usually also a positive.


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Patronage: govt's costly blunder

Zim Independent

Editor's Memo


By Vincent Kahiya

LAST week's editorial exposed the Health ministry's futile attempt to
revive service delivery through the formation of the Health Board and a
Health Services Commission.

The evidence of its failure became manifest this week as hospitals
remained dysfunctional with patients dying on stretchers before being
attended to. There is all the evidence that whenever government runs out of
ideas in solving a national problem, it forms a layer of bureaucracy to
focus public opinion away from the issue at stake.

The attendant costs of setting up the commissions and agencies are
usually not commensurate with their output. This is called patronage. There
is a new kid on the block providing another layer of bureaucratic blubber.
It is called the State Enterprises Restructuring Agency (Sera).

It has already started recruiting senior staff and is in typical
fashion buying new vehicles, furniture, computers and tea-cups. The new
vehicles and the furnishings will no doubt be the only novelty about the
agency. It is not anything new but a ghostly reincarnation of the hopelessly
ineffectual Privatisation Agency of Zimbabwe (Paz) formed in 1999 to, among
other roles, "assist, support and accelerate the privatisation process,
working closely with the public enterprises" and "to lead to eventual
successful privatisation transactions".

There weren't any transactions. If anything, the government's
administration of state enterprises has largely been contrary to the
original remit of Paz. Government still believes that state enterprises can
be rehabilitated. It believes that it can run large state enterprises when
it has unashamedly advertised all-round failure.

During its tenure though, parastatals such as the corrupt Ziscosteel,
shadowy Zesa, incoherent ZBC, ever-plunging Air Zimbabwe and the
not-so-fresh Cold Storage Company became state-owned companies incorporated
under the Companies Act. This was accompanied by an unbundling craze,
especially at ZBC, Zesa and Air Zimbabwe.

This was a careless and costly blunder as splitting the state
enterprises had nothing to do with improving service delivery but became an
extension of Zanu PF's patronage system.

Last year government realised how careless it had been with the
hatchet. It initiated "rebundling" exercises at ZBC and Zesa to gather the
shards and hopefully recreate the monoliths. After papering over the cracks
and applying a new coat of paint the edifices have been re-established as
citadels of corruption and inefficiency, funded by the taxpayer.

Frankly speaking, what can the restructuring agency do today which
government has not experimented with already? Two weeks ago Vice-President
Joice Mujuru was talking tough on the performance of parastatals, warning
management that they would be rewarded according to performance.

We will only believe this when ministers in President Mugabe's cabinet
apply the same principles to themselves. Their general failure and
inefficiency is monumental. They play a supervisory role in the running of
state enterprises and they are also responsible for the appointment of
senior staff. Parastatal heads' inefficiency usually mirrors that of parent
ministries.

A key example is the Cold Storage Company whose once world-class
facilities have been looted and left to decay due to years of neglect and
confusionist thinking. It required a directive from President Mugabe in
Marondera last month to reopen the closed abattoirs for Agriculture minister
Joseph Made to come round from his reverie. There is now a flurry of
activity to reopen the facilities with senior government officials strutting
about in white coats like archaeologists exploring an excavation site.

The CSC story sums up government's handling of state enterprises. Here
is a government that runs its own company into the ground and before
exploring reasons for its demise the president commands that it be
re-opened.

In the case of CSC, it shut down due to the acute shortage of quality
slaughter stock following the demise of commercial agriculture. Suddenly our
rulers believe that the company can be revived without cattle for slaughter.
Was its chief executive Ngoni Chinogaramombe not saying late last year that
Zimbabwe could be forced to import meat due to the decimation of the
national herd?

The same Chinogaramombe is today being asked to revive a company in an
environment he knows is practically impossible. Maybe the president read too
much into the poor CEO's name.

But this is the nature of restructuring that we have become accustomed
to. It is reorganising a few rickety pieces of furniture in a room with
hopes to turn it into the Ritz. Some hope!



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Zim Independent Letters

Strikes denote rejection of Zanu PF's sterile agenda
THE strikes by doctors and workers at Zesa as well as the go-slow in
the schools, the police force and the army reflect a serious national
paralysis authored and orchestrated by the Zanu PF regime.

As a labour-backed party, the MDC supports the basic freedoms of
workers to engage in collective job action and to express their discontent.
At the core of our social democracy philosophy is the respect of the working
people and their inalienable right to demand a living wage and better
working conditions. We stand in solidarity with the workers and their right
to strike, which is not negotiable.

The strikes in the civil service and the time-bomb of general
disgruntlement in critical parastatals, industry and the whole country
reflect a vote of no confidence in the Zanu PF regime. They reflect a
rejection of Zanu PF's sterile agenda of perpetuating misery and looting to
2010. They reflect the national sentiment that postponing the presidential
election is abetting tyranny and oppression.

The strikes reflect a government that has basically collapsed. They
reflect policies and systems that have dismally failed at a time when the
suffering people of Zimbabwe desperately need efficient services in health,
education and other critical sectors.

The MDC laments the humanitarian crisis that the regime has caused by
refusing to address the grievances of the striking workers. The regime must
be held accountable for the human, financial and social cost of these work
stoppages.

Lives have been unnecessarily lost in our hospitals, power shortages
have cost this nation millions of dollars in lost production, there is
strained service delivery in all sectors of the economy while morale is at
an all-time low among the country's teachers, soldiers, policemen and the
entire civil service in general due to poor salaries and dismal working
conditions.

Ordinary Zimbabweans are struggling to bring food to their table.
Pensioners are receiving pitiful monthly amounts of about $12 000.

The majority of our people have resorted to selling goats, cattle and
other personal belongings to meet the escalating cost of their children's
basic right to education. School fees and levies have shot up to
unaffordable levels and most parents cannot afford to discharge their basic
obligation to educate their children.

Such is the cost of the dictatorship which has failed to address the
visible signs of collapse that have engulfed our nation. The MDC believes
that no worker should be dismissed for expressing themselves. We condemn the
victimisation of doctors and Zesa workers for exercising their democratic
right to articulate their grievances through collective job action.

The strikes and protests are danger warning signs which can only be
ignored at the risk of a full-scale national expression of discontent. In
the very near future, these seemingly scattered protests shall blow into a
bigger and more comprehensive national programme to achieve change and a new
Zimbabwe.

The simple message coming from the people is that the nation is
restless for change. The crisis is now realising its gestation period. It is
time for delivery. We need to deliver a new Zimbabwe. The national chorus
for change has engulfed the nation and the demise of the dictatorship is
inevitable.

Ours is simply a crisis of governance and a leadership paralysis that
requires a comprehensive political solution.

The regime should be forced to embrace sweeping political reforms that
include a new, people-driven constitution, free and fair elections under
international supervision, and a reconstruction and stabilisation programme
in a post-transitional era.

Zimbabwe deserves nothing less. 2007 is the year of action, the year
of galvanising all democratic forces - Zimbabweans in and outside the
country - to reclaim their destiny.

* Chamisa is MDC Secretary for Information and Publicity.


---------
Benz purchase proves Gono worst hypocrite

IT is with shock and horror that we hear Reserve Bank governor Gideon
Gono has bought himself a Mercedes Benz for the kingly sum of US$365 000.

This amount on the parallel market (US$1:$3 000) translates to a
whopping $1 095 000 000. What a staggering amount!

This expenditure is in the face of acute economic and forex shortages
the country has experienced for the past six to seven years.

Currently, doctors are on strike, there are no drugs and equipment in
hospitals, no ARVs, no maize meal, no cooking oil, no sugar, no electricity,
no chemicals for purifying water, no fuel, no school books etc. The list is
endless. Yet Gono has the cheek and disdain for Zimbabweans to buy this
vehicle.

Even the super-rich in Europe and America do not drive such cars. Yet
a poverty-ridden third world tin-pot dictatorship like ours, which is
constantly begging for donations and alms to feed its own people can,
without any shame or embarrassment, go ahead and buy such a car for use by
one person. How much of this money could have been used to alleviate some of
the problems besetting the nation?

I thought it was the sanctimonious Gono, in his marathon tirades,
(read "monetary policy speeches") who has always been castigating other
people for the failures of this country, yet he is the worst hypocrite.

Very soon some ministers, parasitic parastatals chiefs - including
Sekesai Makwavarara - will be wanting this type of car in a fools'
competition for who drives the latest Merc in town, never mind that the
nation is on its knees wracked by hunger and disease. Cry the ever-suffering
and ever tolerant Zimbabwean taxpayer! Now we know where the Homelink money
has been going.


Ripped Off Zimbabwean,

Harare.


--------
Sage advice for the RBZ

SEVERAL people have told me that since the introduction of the new
bearer cheques on August 1 2006, confusion caused by the similarity of the
$10 000 and $1 000 cheques has made them to unwittingly lose or gain $9 000
on some transactions.

I have had the same experience myself.

I would like to advise the Reserve Bank to put a thick line beneath
the figures on the top right hand corner of the $10 000 cheques to make them
markedly different in appearance from the $1 000 notes.

Also, when inflation prompts them in due course to start printing
notes of $100 000 denomination, they should print that figure vertically
along the right hand edge and not horizontally.


Watchful Mason,

Harare.


---------
Bad politics consume the perpetrator

By Cuthbert Mudzingwa


THE letter by Joel Knox Matara "Unity agenda, issues of substance
should guide discourse on succession", (Zimbabwe Independent, December 8)
raised an interesting point about the abuse Zipra cadres endured in the
early years of Independence.

I am an ex-Zipra combatant who was sent by Zapu to train as an
electrical engineer in the then Soviet Union.

I came back to Zimbabwe in early 1981 and sought the assistance of the
manpower planning department then headed by Ibbo Mandaza.

Mandaza simply did not entertain any Zipra cadres.

I then sought employment and was engaged by the Ministry of Education
and Culture as a temporary science teacher for a year. Nothing had prepared
me for this kind of hostility in a free and independent Zimbabwe.

I had left Rhodesia where oppression against blacks was
institutionalised but not personal. The treatment I got from Mandaza was
crude and traumatising for someone who had fought for Independence whilst
Mandaza was pursuing his studies at York University, UK, where he supposedly
acquired his revolutionary and Marxist credentials!

Mandaza's behaviour was emblematic of the general attitude of the new
bureaucracy.

We still encounter residual animosity even today although the methods
are subtler and refined. I have forgiven Mandaza even though he has
forgotten my name and face, but I can never forget the rejection and
humiliation that visited me in a free and independent Zimbabwe.

At times, as former Zipra cadres, through chance encounters, we
reminisce over the bad old days in an independent Zimbabwe. We have always
wondered why we had to go through all this abuse from pseudo-revolutionaries
who have since abandoned Zanu PF altogether and are now prominent figures
within opposition ranks or have left Zimbabwe for the UK or the USA in
disillusionment.

We are still here doing our bit for national development if allowed
to. The lesson we draw from all this is that vile, vindictive and
vituperative politics eventually consume the perpetrator.

* Cuthbert Mudzingwa writes from Harare.


--------
How vindictive can Chingoka get really?

I WOULD like to register my dismay at the new Zimbabwe Cricket board.
In fact it is to denigrate the word "board" and the respectable ICC
affiliate international cricket boards to refer to this one as such.

I don't listen to what Peter Chingoka says anymore. His defence of his
newly-picked board in the interview "Will Chingoka leave office?", (the
Herald, January 5) was of course a knee-jerk reaction. Him of all people,
knows too well that he is surrounded by people who know nothing about the
game, who do not command respect and who worst of all, will pull down
Zimbabwe cricket even further.

A board like ZC's, I believe, must be constituted by people with
impeccable professional, financial and societal standing.

Just what, in terms of governance and policymaking resoluteness, can
we expect from needy teachers and small-time "indigenous" businessmen who
sit on this board?

Clearly, these guys want to make a living through the board.

I laughed when one ZC employee told me how his provincial chairman who
sits on the national board envies his job and aspires to be in his position.

To Chingoka, I say congratulations on being re-elected, made possible
by clandestinely changing the constitution and creating ineffectual little
provinces to back him up.

The gentleman is a survivor and schemer. Realising the danger they
posed outside, Givemore Makoni and Steven Mangongo were called back onto the
gravy train, not because their services were valued, but to weaken the
opposing side, which has truly committed people with love and knowledge of
cricket, but find themselves purged by a greedy regime. Chingoka said they
are not stakeholders because they are out of his ring and therefore do not
have a "stake".

How vindictive can you get, sir?

To the true stakeholders of the game, I say please don't give up on
Zimbabwe Cricket. Right will prevail over wrong, and the game shall one day
be returned to its rightful custodians.


Adam Sibanda,

Harare.


---------
These two are crucial

NO one can argue with Eric Bloch's analysis of our forex crisis
(except the use of 20 words when five would do).

However, he does not really address two issues which are crucial:

* For as long as mankind has been walking this earth, no better
pricing mechanism has been invented than the market; prices are set by the
supply/demand equation. This includes the price of foreign currency; and,

* The wanton printing of money to maintain trough levels for the
snouts of the privileged, with no real increase in value, must cease.

The implementation of such medicine is going to hurt and may take some
time, but we have sunk to a level where few options are left.


Peter Pyle,

Harare.


-----------
Governor's priorities warped

ON being appointed governor of Bulawayo, Cain Matema promised to
economically develop the City of Kings and improve service delivery.

What came to my mind was the luring of investors to the city as well
as the completion of a string of unfinished projects, the most glaring one
being the Matabeleland Zambezi Water Project.

However, the governor seems to have turned a blind eye to all this,
focusing attention on insignificant issues which do not economically
strengthen Bulawayo. An example is the rechristening of streets with names
of sons and daughters of the soil.

In as much as it is noble, I think this should be lower on the list of
priorities, if one is serious about Bulawayo's prosperity. Renaming streets
will not magically translate into Bulawayo's prosperity. It was once done
and the country reaped chaos.

What needs to be done, Mr Governor, is to source funds to complete the
water project and to give lucrative incentives to would-be investors to the
investor-dry city.

I am sure these two milestones will console the governor, make him sit
back, smile and then rename the streets. The residents could even give him
the privilege to rename one of the streets after himself.


MD Kufakunesu,

Jerera, Masvingo.


--------
Nothing wrong with checking if wound is healing
By MK Moyo


DUMISANI Moyo, in his column headed "Gukurahundi Bill: to serve what
purpose?", (the Chronicle, January 5), seems peeved that Professor Jonathan
Moyo intends to introduce a Bill about the Gukurahundi era in parliament.

He attempts to whittle down the significance of this epoch in our
history.

"...The 'blame game' viewed as ineffectual in the nation building
exercise..." What blame game are you talking about, Mr Moyo?

Stating that the 5th Brigade massacred over 20 000 innocent civilians
is not just blaming. It is a statement of fact. The president has
acknowledged it as a moment of madness. Apart from the need of
bestowing upon future generations a legacy of the truth, it is
essential for the historical record itself that the truth be recorded as it
happened.

"...the dissidents from Zipra, Zapu's former military wing, and
colleagues who had deserted the army perpetrated numerous indiscriminate
acts of violence."

Let us grant that this is correct! But if you fall short of
acknowledging the full extent of atrocities committed by the 5th Brigade of
the ZNA and the glaring official complicity, then you are a pathetic
hypocrite who has sold soul for coin and is fully employed in singing his
master's tune. What a shame!

Equally futile is Moyo's attempt to blame others for what happened in
Matabeleland other than those responsible.

Attempts to discredit the document, Breaking the Silence on the
grounds that it was authored by Mike Auret and David Coltart, who are white
and had worked for the Rhodesian government in whatever capacity, is facile.

And you, Dumisani, moral purist, where do you get the moral authority
to down-play the Matabeleland massacres and agitate for the removal of this
era from our historical record?

Whether they were sponsored by Super Zapu, John Vorster or whoever,
dissidents were as such - dissidents. Their moral blameworthiness is far
out-weighed by that of a legitimate government that turned to a mass killer
of its own defenceless citizens. It is irrelevant to talk about Super Zapu
or dissidents in the face of wholesale murders by government agents. The
dissidents had no responsibility over protection of the populace. The
government had an unshakeable responsibility for the security of the
citizens.

Then Moyo wants to sell us the myth about the undesirability of
opening old wounds: If they still exist as wounds then they have not healed!
It is folly to ignore them hoping that they will go away.

* MK Moyo writes from Mahatshula, Bulawayo.

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