Zim cities powerless after forced cuts

IOL

          January 28 2006 at 04:31PM

      Harare - Zimbabwe's electricity supplier has been forced to make power
cuts in its two biggest cities due to a "power shortage", officials said
Saturday.

      In the latest blow to consumers grappling with poor service, the
Zimbabwe Electricity Supply Authority plunged the capital Harare and the
second city of Bulawayo in darkness for about four hours Friday evening.

      "We introduced load shedding in some parts of Harare and this also
affected other parts of Bulawayo suburbs," spokesperson Obert Nyatanga said.

      "Eskom was experiencing problems with its own generators, so we ended
up having a shortfall of 400 MegaWatts which resulted in power shortages,"
he said, referring to neighbouring South Africa's electricity utility Eskom.

      Zimbabweans have been reeling under power cuts and poor service but
Nyatanga said the problems will be solved by the end of next week.

      "We have taken one of our generators... for repairs in preparation for
the winter peak electricity demands," Nyatanga said.

      "But the situation was made worse because of problems at Eskom which
resulted in our imports being reduced by 80 percent," he said.

      Zimbabwe's power requirements are currently met 60 percent through
internal generation and 40 percent through imports.

      Imports are expected to stop in 2007 when exporting countries are seen
as likely to run out of surplus power due to increased demand.

      Zimbabwe imports most of its power from South Africa, Democratic
Republic of Congo and Mozambique.

      Zimbabwe's once-model economy has been in a downturn for the last five
years, characterised by runaway inflation and perennial shortages of foreign
currency and basic commodities. - Sapa-AFP

Zimbabwe warns wayward press

      By Michael Wines The New York Times

      FRIDAY, JANUARY 27, 2006

      JOHANNESBURG Zimbabwe's security minister was quoted in a
government-controlled newspaper Friday as saying that "the net will soon
close" on those remaining journalists whose criticism of the government
threatens the nation's security.

      The warning, by National Security Minister Didymus Mutasa, followed
the arrest this month of employees and directors of Voice of the People, a
Harare news organization that had broadcast uncensored reports into Zimbabwe
via a shortwave transmitter in Madagascar operated by the Netherlands'
government.

      The police in Mutare, in eastern Zimbabwe, also seized a well-known
journalist on Jan. 18 and held him for three days on charges of violating
media laws. The journalist, Sidney Saize, was released last Saturday, but
prosecutors indicated that he would still face charges.

      Mutasa indicated that more arrests were forthcoming, saying that some
Zimbabwean journalists had worked for foreign news organizations under
pseudonyms but that the government "had since identified them from their
closets."

      The journalists were "driven by the love for the United States dollars
and British pounds, which they are paid by the foreign media houses to
peddle lies," he was quoted as saying in a report in the Manica Post, a
state-run newspaper in Mutare.

      Independent journalists have been under assault in Zimbabwe since
2003, when the government closed down the nation's biggest newspaper, The
Daily News, which frequently criticized President Robert Mugabe's
government.

      Only two weekly newspapers of significance remain outside government
control, and all broadcast outlets are state-run.

      Civil liberties advocates inside Zimbabwe nevertheless said in
interviews Friday that the latest comments might signal a renewed effort by
the government to close down remaining channels for disagreement with
official policy.

      Otto Saki, an attorney with the advocacy group Zimbabwe Lawyers for
Human Rights, said that the government appeared to be implementing proposals
made at a December conference of the ruling Zimbabwe African National
Union-Patriotic Front, or ZANU-PF, to suppress dissent.

      That party conference singled out independent journalists, human
rights groups and civic organizations as "weapons of mass destruction" that
presented a threat to the state.

      "This is the culmination of various efforts and statements by
government officials on their intentions to possibly rein in individual
organizations that are in the fore of critiquing human rights and general
governance," Saki said in a telephone interview from Harare, the capital.
"It's a well-calculated policy which is going to be orchestrated with the
help of various arms of the government."

Mutumwa Mawere Saga: IMF paid with 'stolen' money

African News Dimension

      Saturday, 28 January 2006, 3 hours and 12 seconds ago.

      By ANDnetwork Journalist

      Zimbabwe is using 'stolen' money to repay its debts to the
International Monetary fund (IMF).This is according to Mutumwa Mawere whose
business empire was nationalised by President Robert Mugabe's government.

      The IMF board this week sent a team to Harare to ascertain the source
of the US$155 million that government used to service its arrears last year
amid reports that President Mugabe's bankrupt administration raided private
accounts to raise the desperately needed foreign cash that averted Harare's
expulsion from the fund.

      In an interview with A.N.D on Wednesday Mawere said, "..governments
operate with budgets, where is the money being used to pay IMF budgeted for
in terms of parliamentary acts. The government said SMM was a forex earner
which needed to be saved, so who is getting that foreign currency now?

      Although closely associated to the Zanu-PF government in the past,
Mawere alleges that the government is on a crusade to illegally assimilate
private businesses and has used funds from such businesses to inter alia
settle its debt to the IMF.

      Mawere, who is in the midst of a legal battle challenging the validity
of a Reconstruction Order, in terms of which the Zimbabwean government took
control of his multi-million dollar assets, has likened the State's action
to that of Uganda during Ida Amin's reign.

      Zimbabwe  government's desire to control nationalised business empire
has taken a new twist with the Attorney General's office admitting their
case lack merit before a competent court of law.

      In a letter sent to the administrator appointed by the Zimbabwe
government the attorney general's office demands that they be furnished with
evidence of how SMM holdings became indebted to the state.

      "..There is further need to clarify the issue of indebtedness in order
for us to be able to make meaningful submissions before the court in the
event that the hearing if this matter resumes," the letter sent to Afraz
Gwaradzimba read.

      Afraz Gwaradzimba was appointed the Administrator by the government
after the take over of SMM holdings.

      President Mugabe's government, claims that Mawere's businesses were
indebted to the State due to insolvency and, because of the nature of the
businesses, it was of national interest to intervene in their
administration. In addition, the "private" nature of Mawere's business
interests has been questioned by the government. It is alleged that Mawere
acquired his assets through government funding - funding that Mawere has
failed to repay - and this, according to the government, further justifies
its intervention.

      According to the relevant legislation, a court's basis for ordering
the reconstruction (in other words the forced administration, by the State,
of its affairs) of a private company is the company's indebtedness to the
State. The legislation also lays out the procedural steps to be followed in
ordering and confirming a reconstruction order.

      Mawere, in his defence and in his contention that the reconstruction
of the companies was illegal and, as such, null and void, has put it to the
court that the companies in question were neither insolvent nor indebted to
the State itself. He also alleges that the procedural regulations were
disregarded.

Gono pleads for fugitive bankers

African News Dimension

      Saturday, 28 January 2006, 5 hours, 45 minutes and 34 seconds ago.

      By James Mapapu

      Central bank governor, Gideon Gono, has intensified efforts to have
President Robert Mugabe's government declare an amnesty on the six fugitive
bankers who fled the country at the height of the financial sector holocaust
that spanned from 2003 to 2004.

      Gono used the presentation of his monetary policy framework last week
as a platform to urge the Mugabe administration to forgive the six, who
currently resident in the United Kingdom and South Africa.

      The six are former Intermarket chief executive, Nicholas Vingirai;
Barbican boss, Mthuli Ncube, and four NMB Bank directors who are Julius
Makoni, Otto Chekeche, James Mushore and Francis Zimuto.

      They stand accused of having illegally externalized foreign currency -
charges which they vehemently deny.

      ".We call upon Government to declare an amnesty to all those who may
have erred and strayed economically in the past, so that a new beginning can
be worked out.As a Central Bank, we will, beginning 1 February 2006 be more
focused on the present challenges and the future and apply the limited
resources we have accordingly. We recommend that Government does the same so
that we can all begin from the present tense into the future and apply the
resources we have accordingly," said Gono.

       This is the second time in less than six months that Gono has urged
authorities to allow the six to come back.

      Last July, Gono made the calls, only to have minister of Justice,
Legal and Parliamentary Affairs, Patrick Chinamasa brush his calls aside.

       While agreeing in principle that the six bankers, Chinamasa said
government would only entertain such calls if the bankers were to first
confess to wrongdoing.

      However, the bankers have refused to make "confessions" and have all
along been arguing that they were victims of a government crackdown on
individuals perceived to be hostile to the Mugabe regime.

      They refused to return to the country to work out a settlement with
government following the enactment of the Presidential Powers (Temporary
Measures) (Amendments of the Criminal Procedure and Evidence Act).

       The law has a controversial provision allowing the state to detain
individuals deemed guilty of being illegally externalising foreign currency
for 21-days without charge.

      Following this, the state can apply to the courts for an extension of
the detention period, while the police carry out investigations, and the
court is not permitted to deny such a request.

      This is the same provision that saw embattled Zimbabwean business
tycoon, James Makamba spend close to six months in detention, while
ex-minister of Finance, Chris Kuruneri suffered even worse, spending over 14
months in jail.

       The Zimbabwean government has since declared the bankers specified
individuals and seized their properties.

       However, Gono has said that those with cases before the courts should
not benefit from such an amnesty, and this will affect Makamba and ENG
director, Gilbert Muponda.

       Embattled magnate, Mutumwa Mawere will also not benefit from such.

      Mawere has become an unofficial enemy of the state, and any return to
Zimbabwe will see him being incarcerated.

JAG Fund Raiser Communique

Zim Visit

Sent: Sunday, January 29, 2006 2:15 AM
Subject: Zim Visit.

I flew to Zim for a week to see the folks, and would like to convey to you
some of my impressions of the country as it is now, compared to June 2004
when I was last there.

It is difficult to comprehend how people survive up there in the current
economic climate, you certainly need to be hardy and resilient. ( Something
that we learned how to do during the sanctions years. )

To give you some idea of spiralling prices, last year in June, chicken and
chips from Nando's cost Z$ 98,000.00, now that same meal costs you Z$
425,000.00

A Z$ 220,000.00 pension per month will see you right for a months supply of
bananas, yes, that's one per day.

The hardest hit of course are the elderly. Some of them are fortunate enough
to have kids who support them, others have UK pensions which make life a
little more bearable when converting 1 £, you get Z$175,000. 1 US Z$100,000.

Surprisingly, you can still go and enjoy a good cappuccino at Sopranos in
Avondale, sets you back a staggering Z$ 69,000 for the cuppa. A toasted
sandwhich sets you back Z$255,000. The zeroes have now been replaced by K's,
as this probably saves some ink during printing of the menu's prices which
are probably reviewed on a monthly / quarterly basis.
A decent slice of cake from the Italian bakery costs Z$100,000, some places
push Z$160,000 for the same thing.

Doon estate still serve a very good lunch, lovely home baked bread, and very
fresh. Paying for lunch is a bit of a joke, you have to count wads of notes
in Z$20,000 denominations, and having to cough up several millions for the 4
of you.
It is useful to put rubber bands around each wad of Z$1,000,000.00, and even
half millions, helps when paying bills.

Imagine Z$5,000,000.00 in Z$10,000 bills, it's like holding 2 bricks side by
side in your hand. = $50  US
Z$50,000 is on it's way, as is the proposed new currency. They will have to
drop the zeroes, just like the Angolans did with their Kwanzas.

On the way back from Doon estate I saw a Mazda 323 zig - zagging to miss the
potholes in the road. He fell into the last pothole just afore the traffic
light, and trashed his front-end, sorry sight that was.

The availability of petrol is an ongoing problem, even Wedzera garage, ( who
take fuel coupons that have been bought with US currency ) , have been out
of fuel for some 3 weeks now.

There are places other than garages ( private residences / business ) that
sell fuel for Z$ 100,000 per litre, when they have it.

A lot more robots are out of action, they have either been crashed into, or
the bulbs are dead, or stolen for use in disco's, etc

It costs a million to go and see a GP, pensioners can no longer afford the
luxury of a medical check up.
Those of pensionable age are now forced to work ( if they can find it )  to
make ends meet, they basically have to keep working till they drop dead. We
have all heard of children losing their childhood in sweatshops, the elderly
are now in the same boat. A comfortable retirement, or the  golden years as
they say, has become a dream.

I heard that: The mount pleasant library was vandalized around Xmas, and
that derogatory comments against whites were found inside.
Bibles were stolen from a church. ( even criminals cram for finals )
Doctor's surgeries have been broken into, etc.
6,000 a week are dying of aids in Harare.
Power cuts and inadequate water distribution are commonplace, part of
everyday life.

As you all well know, Air Zim have been having fuel problems, ie aziko
aviation fuel, Jet A1
I was surprised to see that the A319 airbus that was leaving for Joburg, was
being topped up by a HAFS truck on the tarmac. I am not sure what HAFS
stands for, but in the present climate, perhaps a fitting acronym for
Have Aviation Fuel Sometimes.

Black market fuel prices shoot up

Daily Mirror, Zimbabwe

The Daily Mirror Reporter
issue date :2006-Jan-28

BLACK market fuel prices in Harare this week surged to $650 000 per five
litres from $500 000 in December with oil companies hiking petrol and diesel
prices from $100 000 to $110 000 a litre.
The $650 000 translates to a rise of $130 000 a litre.Analysts yesterday
said the fluctuation of prices was subdued by the increased fuel inflows
caused by the liberalisation of prices.
Commuter omnibus operators yesterday said black market prices sometimes
shoot up to $180 000 a litre depending on the availability of fuel on the
market. As a result of the price hike, some increased fares this week to $30
000 a trip arguing that with the current state of the transport industry,
their operations would be affected if no adjustments were effected.
"The viable price would be $80 000 a trip. We are incurring increased
operational costs and it is difficult to breakeven," on operator said.
Analysts noted that the black market would take long to stop if privileged
people continued to access fuel at subsidised prices and disposed it on the
parallel market for quick returns. In a survey yesterday, most service
stations in Harare were dry, but the few that were selling fuel were
charging between $110 000 and $120 000 a litre.On Tuesday, the Reserve Bank
of Zimbabwe (RBZ) said fuel problems were a result of poor organisation
where the National Oil Company of Zimbabwe (Noczim) sold the commodity at
below procurement costs, leading to losses.The bank said Noczim made losses
in excess of $1 trillion last year.
"We are ready to enter into some arrangements where tailor-made
interventions are put in place to cushion, on a targeted basis, the
vulnerable groups, to allow for the realignment and liberalisation of fuel
prices," said RBZ governor Gideon Gono. Fuel inflows have been affected by
foreign currency shortages among petroleum companies.
Bogus foreign companies have taken advantage of the distress to reap off
billions of dollars out of prospective petroleum importers by enticing the
local dealers to deposit foreign currency into offshore accounts for the
delivery of the highly sort after fuel. However, most of the local fuel
dealers are reported to have failed to receive their consignments.
Major players in the petroleum industry, like BP and Shell, said there had
been an increase in companies acquiring deliveries after being duped into
depositing money in the accounts of people claiming to be official
representatives of registered fuel companies in Zimbabwe.
The petroleum products are paid for under the Direct Fuel Imports (DFI)
scheme, which started in 2004 when government deregulated the industry to
allow independent importers. The deregulation increased fuel shipments into
the country, but pushed the cost of other commodities and services beyond
the reach of many.

'Phase out shopping trolleys'

Daily Mirror, Zimbabwe

The Daily Mirror Reporter
issue date :2006-Jan-28

... prices of basic commodities continue escalating

THE prices of most basic commodities have continued to escalate on the
backdrop of salary increments effected this month for most workers.
Some shoppers have, considering the trend, even called for the phasing out
of shopping trolleys because they can hardly be filled now.
The prices appear to have risen in reaction to the increase in the
disposable income of most workers because of a shift in the taxable
threshold from $1.5 million to $7 million at the beginning of this month.
Remuneration negotiations have also seen the minimum wage rising to an
average of $6 million.
A random survey conducted by The Daily Mirror in three major retail outlets
showed that the prices of most basic commodities had more than doubled
inside two months since last year.
The price of two litres of cooking oil in the three outlets averaged between
$360 000 and $500 000 from $250 000 last month.
A half keybar washing soap at OK supermarket was selling at $92 000, at TM
$62 000 and a 750 grammes bar at Gutsai sold at $144 000. In some smaller
shops, the full bar could not be found with half bars and quarter bars
dominating the shelves.
Packs of beef at Gutsai Supermarket sold at $445 000 a kilogramme while at
OK the same quantity went for $395 000 and $295 00 at TM.
A 2kg pack of Suncrest oven ready chicken portions sold between $582 000 and
$620 000.
In all the three shops, Chimombe fresh milk cost between $46 000 and $52
000.
Mealie-meal, which was scarce in most shops, cost $150 000 for a 5kg pack at
OK.
The price of bread, however, remained uniform in all outlets at the gazetted
$44 000 a loaf.
Petroleum Jelly, which used to be the product for those who could not afford
expensive lotions, or alternatively for miscellaneous use has also been
priced beyond the reach of many.
A 300ml bottle averaged between $170 000 and $180 000, not far removed from
Ingrams Camphor Cream whose 500g averaged around $500 000.
Women would feel hard hit by the rise in the prices of sanitary pads whose
Stayfree pack of 10 sanitary pads averaged between $230 000 and $260 000 up
from around $150 000 last month.
Translating the costs of the commodities, one could easily exhaust $1
million on 2kg chicken and 1kg of meat, which is not enough to last a
six-member family a month.
With rentals pegged at an average $1,5 million a room a month in the
high-density suburbs, transport costs at over a million for an individual, a
worker who earns about $6 million would find himself empty-handed two weeks
after payday, if not earlier.
It has also become a rare sight for any customer to fill up a supermarket
trolley with groceries, prompting one shopper, Loveness Mukaro, to say the
trolleys should be phased out.
"Who can fill up that trolley? To fill it up you need more than $20 million
and who earns that much? Life has just become so difficult that one has to
stick to the bare basics," she said.
Cecilia Kanyowa from Glen View said it was preferable to have price controls
than a free market where entrepreneurs charged prices from the sky.
"We feel government must intervene by way of price controls as some
retailers are taking advantage of the already overburdened consumers by
charging unrealistic prices. Life is increasingly becoming tough for the
majority of people especially those living in urban areas where one buys
everything from the shops," she said.

ZNSPCA update