The ZIMBABWE Situation | Our
thoughts and prayers are with Zimbabwe - may peace, truth and justice prevail. |
Lusaka, Zambia - Exiled white Zimbabwean
farmers have helped neighbouring
Zambia break a crippling food shortage that
saw millions rely on food aid
last season.
The roughly 100 Zimbabwean
exile families have settled in central Zambia's
fertile maize-growing
district of Mkushi, where even critics concede they
have revolutionised
commercial agriculture by introducing hi-tech commercial
farming techniques
through partnerships with local landowners.
They have been so successful
that Zambia's Investment Centre (ZIC) has just
issued certificates to 31
Zimbabweans authorising them to begin commercial
farming in their own name
and on their own newly acquired land, while
Zambia's national government
intends luring even more disillusioned
Zimbabwean farmers across the border -
regardless of possible discomfort in
relations between Lusaka and
Harare.
Saw them as the enemy
"People initially saw them as the
enemy, seeking refuge in Zambia. Because
they were white, people were also
scared that the history of racism would
resurface. Even people in government
thought there should be solidarity
(with Zimbabwean President Robert Mugabe),
and we should refuse them
(entry)," says Zambian deputy agriculture minister
Chance Kabaghe.
"But we saw them as potential investors who could improve
our food security.
"We have now been vindicated."
Forced off their
farms
The exiles fled to Zambia after being forced off their properties
in
Zimbabwe during the fast-track land reform programme that began in 2000.
The
Zimbabweans currently either rent land for farming from the locals, or
go
into partnership with owners who do not have the capacity to till
huge
tracts of land.
"It's farming that we know and do best. So we
just want to see where the
land lies, before we apply for permits and
licenses and buy land," explains
one of the migrants, Jimmy
Stewart.
The official support for the Zimbabweans forms part of a wider
multi-pronged
strategy to revive Zambia's agricultural sector, which is still
reeling from
the effects of two successive droughts, with a shortfall of 635
000 tons of
grain last year.
As a result, food prices rocketed and 2.9
million people were in need of
assistance.
"This season we were
determined to prioritise agriculture with timely input
distribution," says
agriculture minister Mundia Sikatana.
The government continues to support
more than 150 000 local farmers with
subsidised maize seed and fertiliser. It
has also specified that commercial
farmers, both local and foreign, put at
least 10% of their acreage into
maize production to ensure Zambia doesn't
suffer another grain shortage.
There is no official figure indicating
exactly how much maize Zimbabwean
farmers produced last year, but some
reports indicate that they grew over
70% of Zambia's 2003 maize
crop.
ZIC notes in its end-of-year report that all the Zimbabwean farmers
awarded
licenses had also started producing tobacco and wheat. "They have
what it
takes to undertake various farming enterprises and we would like
more
farmers of the calibre of Zimbabwean farmers to invest in agriculture,"
the
investment body said.
While acknowledging the farming prowess of
the Zimbabweans, local farmers
complain they had an unfair
advantage.
'I am happy, but...'
"I do not want to sound petulant -
I am happy that we have a bumper harvest
and do not need food aid. But I feel
a little peeved because we (local)
farmers have been made to look
incompetent. There are reasons the
Zimbabweans had such a good crop," says
Zambian farmer Thrifty Stephenson.
Zimbabwean farmers had collateral for
loans from local and international
financial institutions, Stephenson points
out, while some also brought
equipment and machinery with them. This gave
them a "leg up" when they
arrived in Zambia.
Well-heeled business
people
"We are not talking refugees here. We are talking well-heeled
business
people," stresses Stephenson.
The Standard Chartered Bank of
Zambia, for example, gave loans to more than
20 Zimbabwean farmers who had
settled in Zambia, to acquire existing farms
or buy land. The bank's
executive director of finance, Brighton Ngoma, says
his institution had set
up an agricultural unit to help boost the sector.
The money being lent out
was from the European Investment Bank and from
Standard Chartered
itself.
Local farmers were also supposed to have benefited from the
funds, but
discussions about this matter are still underway with the Zambia
National
Farmers Union.
Reduce inflation "It's not that we do not have
confidence in the local
farmers. We need to make sure that we protect our
investment and also attain
our objective to increase agricultural production.
Already we are seeing the
benefits of our lending to Zimbabwean farmers,
because the good harvest has
helped reduce inflation as well as stabilise the
foreign exchange," said
Ngoma.
Zambian President Levy Mwanawasa
recently announced that government would
revitalise farming through
agricultural financing, tax exemptions for
imported equipment and low power
tariffs. The government also wants to
revive co-operative banks that lend
money to farmers at favourable rates,
and national marketing boards to buy
their crops.
Stewart, who has a farm leased from a local resident, is
reluctant to
criticise existing agricultural policies. But he agreed that it
was
difficult to make commercial farming viable in Zambia. He cited
high
electricity tariffs, duties on equipment and the lack of a good lending
and
marketing policy.
"Basically we came equipped with our own money,
some equipment and good
relations with international banks and donors. So we
are not affected by
those problems."
Abundant land and water
On
the positive side, says Stewart, there is a steady and reliable supply
of
manual labour, abundant land and water resources. Almost half of
Zambian
land is suitable for various types of crops.
Government
appears to be keeping an eye on the Zimbabweans.
"Minister Sikatana
visited us here, I think, just to make sure we were doing
what we said we
would do, and was quite happy with our output. So for the
time being, things
are looking good," Stewart says.
Kabaghe is confident that more
Zimbabwean farmers will come when they
realise Zambia welcomes investors, and
that it does not have the
land-ownership problems that have beset other
countries in the region.
Meanwhile Zimbabwe is experiencing a
debilitating food shortage for the
second year running - something that
analysts have ascribed to drought, and
the drop in food production caused by
the land distribution programme. More
than half the country's population will
require emergency food aid this
year, according to the World Food Programme.
- Inter Press Service
The Herald
Zambians unhappy with ex-Zim farmers
The relocation by
some former white Zimbabwean commercial farmers to Zambia
has caused anxiety
among Zambians.
Although the farmers are said to have helped Zambia pull
out of food
shortages, Zambian farmers are disgruntled over the unfair
advantage the
former Zimbabwean farmers have.
In addition to
immediately accessing loans from Zambian banks the farmers
also have the
equipment that they had been illegally smuggling out of
Zimbabwe to
Zambia.
Former white commercial farmers have been smuggling irrigation
equipment and
machinery from the country to neighbouring countries in
defiance of
Government regulations, which forbid them from doing
so.
Recently The Herald discovered two containers laden with
irrigation
equipment, which was being transported by road to
Zambia.
The equipment included combine harvesters, tractors, irrigation
pipes, water
pumps and generators belonging to JJ Estates of
Mhangura.
Four more containers were reported to have already crossed into
Zambia by
road.
Billions of dollars worth of equipment is believed to
have already left the
country for neighbouring countries. Most of this
equipment was bought using
cheap funds made available by the Zimbabwean
Government to finance the
agricultural sector.
The Government has had
to put new measures in place to acquire from farms
all equipment and material
that is not being used for agricultural purposes.
The Presidential Powers
(Temporary Measures) Acquisition of Farm Equipment
or Material Regulations
gazetted recently make it clear that no owner or
holder of farm equipment or
material shall wilfully demolish, damage, alter
or export the farm equipment
without the consent of the Minister of Lands,
Agriculture and Rural
Resettlement.
The Standard Chartered Bank of Zambia gave loans to more
than 20 Zimbabwean
farmers who had settled in Zambia, to acquire existing
farms or buy land.
Local farmers were also supposed to have benefited
from the funds, but
discussions about this matter are still underway with the
Zambia National
Farmers Union.
While acknowledging the farming prowess
of the Zimbabweans, local farmers
complain they had an unfair
advantage.
"I do not want to sound petulant — I am happy that we have a
bumper harvest
and do not need food aid. But I feel a little peeved because
we (local)
farmers have been made to look incompetent. There are reasons
the
Zimbabweans had such a good crop," Thrifty Stephenson, a Zambian
farmer,
said.
He says the Zimbabwean farmers had collateral for loans
from local and
international financial institutions, while some also brought
equipment and
machinery with them.
This gave them a "leg up" when they
arrived in Zambia. "We are not talking
refugees here. We are talking
well-heeled business people," he says. —
Herald Reporter-IPS-GIN.
JAG OPEN LETTER FORUM
Email: justice@telco.co.zw; justiceforagriculture@zol.co.zw
Internet:
www.justiceforagriculture.com
Please
send any material for publication in the Open Letter Forum to
justice@telco.co.zw with "For Open Letter
Forum" in the subject
line.
---------------------------------------------------------------------------
LETTER
1:
Mike quotes The Last Boer as saying of a group of white Zimbabwean
farmers
whom he met at the Royal Agricultural Show
" I found them
very arrogant and narrow-minded'
' They closed themselves off from
the black community.'
' They didn't help black farmers. Most of them
were selfish.' quote
unquote.
Now I do not wish to take issue with
these claims as such. Merely to
present my own impression of the farmers
about whom he speaks.
These farmers had an exceptional level of knowledge
and expertise. This
knowledge was the accumulated wisdom and experience of 3,
4, 5 or more
generations of hard-bought experience.
These farmers were
the foundation stone of Zimbabwe's thriving economy.
These farmers had an
exceptionally happy and harmonious relationship with
their farm
workers.
These farmers were a unique group. They had become an integral
part of the
system which they had helped to create.
Their removal has
precipitated the crash of the Zimbabwean economy.
Finally, we all need to
be on guard. We should not permit ourselves to be
distracted by red
herrings.
When a man has been robbed is he to be tried for the
theft?
Rob
Gass
-------------------------------------------------------------------------
LETTER
2:
The Council,
of the CFU.
Gentlemen,
The start of a
new year is always good time to take stock of the past and
look to the
future. Hylda Richards defined the past as settled but that the
future is
problematic because it remains unknown. Her fundamental belief
was that Next
year will be better and she wrote a book about it. Trevor
Grundy and Bernard
Miller also wrote a book which I was given for Ch
ristmas - called Farmer at
War - published in 1979. It causes the reader to
ask a lot of questions about
the past and the future of agriculture and
this country - and also the role
that you gentlemen are now playing.
Basically it covers what is commonly
referred to as the Second Chimurenga.
There are some simple facts about it -
it claimed over 270 lives of
farmers, farmers' wives and children that were
all part of commercial
agriculture.
The bayoneting to death of a baby
girl (Natasha Glenny) left in the care of
her nanny in what is now known as
Chimanimani, on 29.9.1977. makes the
reader think carefully about the word
Chimurenga - and Gukuruhundi and
Genocide for that matter. Unfortunately
there are more questions than
answers. However it seems that these questions
need to be thought about by
yourselves even if they are difficult to
answer.
*Which African National Union mounted the Second
Chimurenga?
*Which African National Union mounted the Third Chimurenga in
February 2000
and openly advertised it with "Chave Chimurenga!" on television
and radio,
newspapers and T shirts?
*Which African National Union
stated:
"In fact, overall, the land question was our major political weapon."
(?)
*Which Farmers' Union President stated in August 2002:
"It is our
policy to work with the Government on the land
reform
programme"(?)
*Is it unreasonable for displaced farmers to
think that aside from their
elected leaders openly stating that they
supported the government's
actions, that their policy was actually to have no
policy?
*How many examples are there of agreements with government that
have been
honoured?
*What is the response of the elected body to one
of its regions deciding to
distance itself from actions of the mother
body?
* Is there an elected member of Council in your midst with the
courage of
his convictions to stand up for the human and property rights
(Justice) of
a persecuted minority group of committed Zimbabweans known as
White
Commercial farmers?
*How has "Chave Chimurenga" helped the
Zimbabwean economy and its
international image?
*How representative
and accountable do you feel as a group to your members,
and ex members, that
have lost their properties and livelihoods?
Pro
Justice.
---------------------------------------------------------------------------
LETTER
3:
The extract quoted below is from an article in ' The Zimbabwe
Situation'
dated January 05 2004 :
The writer is Byran
Porter
Quote ' In a poll conducted on News 24, 40% of the 3500 people who
voted
said that they would like to see Mugabe and his ZANU - PF regime
replaced
with new leadership in the news during 2004.'
The
participants in the survey had been presented with 5 different
possible
scenarios of developments which might take place this
year.
The second highest response (18%) said that they would like to
see
President Mbeki focus on domestic affairs.
This high level of
sympathy for and interest in Zimbabwe's predicament on
the part of South
Africans is a resource which we need to utilize...
Rob
Gass
---------------------------------------------------------------------------
All
letters published on the open Letter Forum are the views and opinions
of the
submitters, and do not represent the official viewpoint of Justice
for
Agriculture.
JUSTICE FOR AGRICULTURE THOUGHT FOR THE DAY - January 7, 2004
The beauty
of the land
Has been forgotten because of
All the blood that has
been spilt
In the false name of an unjust cause
The farmers and
people of Zimabwe
Still see through the deceit and lies
Somewhere
in the future, there is hope.
The spirit within us lives on
As the
joy remains in our memories
May we be strong enough to survive
The
tyranny that has gripped our land
For Zimbabwe is our country,
No
matter our skin colour.
Live on, fight on. One day the wrongs
Will
be undone and justice
Will prevail once again.
Until then, hold
your head up high
And send your prayers even higher.
Smile with
the knowledge,
That good will prevail.
Email: justice@telco.co.zw; justiceforagriculture@zol.co.zw
Internet:
www.justiceforagriculture.com
Mugabe immunity court case
starts | ||
Human rights activist Peter Tatchell - who has twice tried a citizens' arrest on Mr Mugabe - wants him stripped of his immunity as a head of state. He asked London's Bow Street Magistrates' Court to allow Zimbabweans to pursue a case in British courts. A district judge adjourned the hearing for a week. Sworn affidavits from two exiled alleged victims and documents from human rights groups showed Mr Mugabe was guilty of using torture on a "massive scale", the court heard. Mr Tatchell wants the court to ignore a ruling by the International Court of Justice in February 2002 which says that a head of state has absolute immunity from prosecution even if accused of genocide or torture. He then wants it to be possible for Mr Mugabe to be arrested in one of the 100 countries which Britain has an extradition treaty with and brought to the UK.
Mr Tatchell alleged Mr Mugabe had, while in office, "intentionally authorised, condoned and acquiesced in the infliction of severe pain on another person between 29 September 1998 and 7 January this year". Mr Mugabe has also conspired with others in the commitment of torture, breaching Section 134 of the Criminal Justice Act 1988, which incorporates the UN Convention Against Torture 1984 into UK law, the court was told. Mr Tatchell said it was "inconceivable" that Mugabe, as commander in chief of the Zimbabwean military, did not know about the behaviour of the security services. And he said the 1946 Nuremberg Tribunal precedent and the UN Rome Statute 1988, suggested there was no immunity in cases of crimes against humanity. |
A yellowing poster in the
arrivals hall of Bulawayo Airport welcomes you to
"Zimbabwe - Africa's
Paradise". If there's an advertising-standards
authority here, it's clearly
neglecting its job. A sign cautions customs
officials to be on the lookout
for "Chechen and Peruvian" nationals.
Luckily, my German passport awakens no
suspicions, and I'm able to slip into
the country unnoticed. Nearly all
foreign journalists have been expelled
from Zimbabwe by the notorious "Dr
Mo", the information minister, Jonathan
Moyo.
Zimbabwe was once
renowned as the "bread basket" of Africa. When
independence was declared in
1980, the new president, Robert Mugabe,
confidently announced that his
country would never want for food. Those days
are long gone. Twenty-three
years later, Mugabe is still in power, but in
the hunger stakes, Zimbabwe now
ranks alongside Ethiopia and Sudan. Two
thirds of the population are now
dependent on handouts from Western donors.
I travelled with the German
non-governmental aid agency Help to
Matabeleland, the region on the
south-western border with Botswana. This is
the heartland of the Ndebele
people - literally, "Those with Long Spears",
descendants of South Africa's
famous Zulu warrior tribe. Matabeleland has
long been a centre of opposition,
first to 19th-century British
exploitation, then to the Mugabe regime. In the
early 1980s, some 20,000
Ndebele were slaughtered by Mugabe's North
Korea-trained Fifth Brigade in
the culmination of a power struggle between
Mugabe's Shona-speaking Zanu-PF
party and the Ndebele-dominated Zapu party of
Joshua Nkomo, who later became
vice-president. Now, the people here are on
the verge of starvation, but no
one expects the government to help them. Aid
organisations are their only
hope.
Zimbabwe is no stranger to drought
- there was a very bad one back in 1992.
But the situation now is far worse.
Several hundred people were already
waiting for us when we arrived in a
village to distribute food. One hundred
kilos of maize, 16kg of beans, 1.5kg
of salt and two litres of vegetable oil
have to last a family a whole month.
Help also distributes seeds: maize,
sorghum, beans and millet. This dual
approach aims to prevent farmers from
eating the harmful seeds out of sheer
desperation, instead of planting them.
The recipients are mostly households
headed by women whose husbands have
succumbed to the Aids pandemic now
ravaging Zimbabwe. Under a scorching sun,
women and children wait patiently
to have their names registered. Despite
its denials, Mugabe's government is
using food as a weapon, withholding
supplies to punish opposition areas. Help
has therefore enlisted the
assistance of local churches to identify the most
needy. The NGO also
provides training for small-scale farmers - something
notably absent from
the government's self-proclaimed resettlement programme.
"Help People Help
Themselves" reads the sticker on the agency's 4WD vehicle.
But ask the
Zimbabweans what would become of them if the foreign aid
organisations
weren't there to help them, and they answer, "We would
starve".
Mugabe introduced his contentious land distribution programme in
2000. Since
then, 4,000 white Zimbabwean farmers have been driven from their
land, along
with 300,000 black Zimbabwean farm workers. The "white farms"
were
redistributed among landless black supporters of Mugabe's Zanu-PF party
and
so-called "war veterans". These must have displayed an
extraordinary
precocity since, at the time that Zimbabwe was struggling to
gain
independence from Britain, many of the "veterans" were still in
nappies.
These fighting prodigies have, however, no understanding of
agriculture, and
although Mugabe rewarded them with farms, he provided them
with neither
equipment nor seeds. Even the government has now admitted that
at least 40
per cent of the farms that kept Zimbabwe in such abundance are
now lying
fallow, with the rest producing far less than their potential. The
lack of
food is a man-made, not a natural disaster.
None the less,
Mugabe looks bent on continuing with his policy of land
reform. Legislation
is to be passed soon to speed up the process of land
acquisition. This will
be welcome news to the ruling élite: Jonathan Moyo,
the former union
heavyweight-turned-information minister, is said to have
acquired at least
three of the farms expropriated by "war veterans". Moyo,
however, may have
other problems at the moment. During his union days, he
published a book,
Voting for Democracy, which lambasted, of all things,
Mugabe's
land-acquisition programme. Much to the author's embarrassment, the
book is
supposed to be a bestseller in Zimbabwe - among those who can still
afford to
buy a book, that is.
The Zimbabwean dollar has become virtually
worthless. It has been pegged to
the US dollar for the past nine months at
824 to one, but $1 now fetches up
to Z$6,000 on the black market. Inflation
has reached 619 per cent, and even
the finance minister admits that it's
about to get a lot worse. Prices are
so ludicrous that ordinary Zimbabweans
are unable to buy even basic items.
Bread is Z$2,500 one morning, Z$3,000 the
next. In November, the price of a
pair of glasses was Z$1.2m, 10 times what
it was a year ago. If you manage
to find petrol at all, a litre will set you
back a staggering Z$4,000. It
used to be Z$65. Around 70 per cent of the
population are unemployed, and
those who don't lose their jobs are forced to
give them up because their
wages barely cover the bus fare. Galloping
inflation depreciates the value
of salaries, and pushes even low-income
employees into the highest tax
bracket of 45 per cent. In fact, when a rumour
started that the security
thread in the Z$500 note contained traces of
platinum, thousands cut them up
and smuggled the supposedly valuable metal
over the border to South Africa.
I took a plane to the Victoria Falls.
The regular bus service had been
suspended because of the fuel shortage. I
had to carry my money hidden on my
body, as police stationed at random road
blocks were confiscating foreign
currency. The Falls were once Zimbabwe's
biggest tourist attraction, but
tour operators there told me that business is
down a staggering 70 per cent.
The "traditional dances" performed outside Vic
Falls airport smacked of a
government-orchestrated exercise in damage
control.
Faced with the utter ruination of their country, Mugabe and Co
comport
themselves with brazen cynicism. Their policies are driving Zimbabwe
ever
deeper into bankruptcy, but ministers and administrative officials
are
earning a fortune by buying dollars at the official exchange rate
and
trading them on on the "parallel" market.
To get around the
problem of the useless banknotes, the government has
invented so-called
"bearer cheques", a kind of Monopoly money. But there is
a snag: the money is
only valid until early 2004. Zimbabweans, who have
cultivated a particularly
bleak sense of humour, have another name for them:
"burial cheques". As puns
go, this one isn't very funny when you consider
that for Zimbabweans, burials
have become an all-too-frequent ritual. A
recent study found that in the past
year, 90 per cent of all households had
cared for a terminally ill person.
The HIV-Aids epidemic in Zimbabwe has
reached horrifying proportions: every
week it is estimated to kill between
3,000 and 4,000 people. The health-care
system has effectively collapsed,
with trained Zimbabwean medical personnel
fleeing the country for greener
pastures in the UK and elsewhere. Hundreds of
thousands of children have
been orphaned by the disease, and no one knows who
will look after them.
Whoever doesn't die of Aids or starvation runs the
risk of becoming a victim
of political violence. The day I arrived in
Bulawayo in late November, the
Zimbabwe Congress of Trade Unions had called
for marches across the country
to protest against the government's economic
incompetence. Nurses were
demanding an 8,000 per cent pay rise. The marches
were declared illegal well
in advance; Zimbabwe's strict security laws
prohibit any kind of protest
without police permission. The unions went ahead
anyway, and the
demonstrations were broken up by riot police. Several hundred
protesters and
trade union leaders were arrested in Bulawayo, Harare and
other major
cities.
I spoke to a doctor who has treated victims of
torture. He described how
alleged opposition supporters come to him with
their soles beaten to a pulp.
Women are repeatedly raped by the infamous
"Green Bombers'", self-styled
militia gangs that are wreaking havoc on
communities. Even children are
punished - in government hospitals, doctors
refuse to vaccinate the children
of opposition supporters.
"Mugabe has
destroyed our country," declares Pius Ncube, the Catholic
Archbishop of
Bulawayo. At first glance, the priest seems reserved, almost
shy; but
appearances are deceptive. The tall man with the thick horn-rimmed
glasses is
a relentless campaigner for human rights, and the most prominent
Zimbabwean
critic of the Mugabe regime. When news spread that Ncube had
suffered a
stroke, people rushed to his residence, sick with anxiety. We've
arranged to
meet at a retreat two hours' drive from Bulawayo, and I'm
beginning to wonder
whether "they" have found out that I'm a journalist when
police stop our car
for the second time. But we get through, and when I
arrive at the rendezvous,
Ncube is in high spirits. "The government wanted
to bribe me with a farm as
well," he jokes, "but I was able to resist the
temptation."
He
continues on a more sober note. "Here, people disappear overnight. Others
are
tortured, the press is under siege, and the freedom of assembly
is
restricted. In the first four months of this year, 180 people starved
to
death in my diocese alone. Young girls and boys are turning to
prostitution
simply in order to survive."
The archbishop is a thorn in
the side of the government. Jonathan Moyo tries
to discredit him by calling
him a "crazy priest", and a "very troubled
soul". But the government can't
ignore Ncube because he refuses to keep
quiet. "Yes, I get threats," he
admits. "But they've silenced everybody
else. Someone has to speak for the
people."
Ncube's uncompromising stance has earned him a reputation as
"the voice of
the voiceless". But although he is highly regarded in the West,
his appeals
to Zimbabwe's neighbours fall on deaf ears. In September he gave
a press
conference in Johannesburg alongside former members of Mugabe's
youth
militia. The ex-militiamen described how they had participated in the
rape,
torture and murder of the government's opponents. Ncube accused
African
leaders of being blind to human- rights abuses in Zimbabwe: "African
leaders
are a club of rich men who don't care about their own
people."
However, Mugabe waited in vain for an invitation from the
Nigerian president
Olusegun Obasanjo to attend the recent summit of
Commonwealth heads in
Abuja. Zimbabwe was suspended from the Commonwealth
after the farcical
general election in March 2002, in which Mugabe clung to
power for the fifth
time amid accusations of violence, intimidation and
electoral fraud. In
December, despite the opposition of some of Zimbabwe's
neighbours, the
Commonwealth voted overwhelmingly in favour of extending the
suspension. As
a result, Mugabe announced the withdrawal of his country from
the
organisation.
The dispute over how to deal with Zimbabwe has
shaken the Commonwealth.
Although several African and Asian countries also
voted against him, Mugabe
and others are playing the race card and accusing
"white" countries of
hijacking the organisation. His petulant decision can,
however, only
increase his country's isolation - and the suffering of the
Zimbabwean
people.
© Ludger Schadomsky and Charlotte Collins
New Zimbabwe
Chiyangwa named in ENG scandal
By
Staff Reporter
08/01/04
A TOP official in Zimbabwean President Mugabe’s
ruling party and advocate
for black empowerment has been sensationally named
in the biggest financial
scandal in Zimbabwean history.
Phillip
Chiyangwa, a flamboyant businessman and MP for Chinhoyi was named in
court as
a 40 percent shareholder in the ENG asset management firm which
collapsed
last week after a whistle blower alerted the central bank to
fraudulent
activities at the company.
Chiyangwa was summoned to court Wednesday at
the appearance of Nyasha
Watyoka and Gilbert Muponda. He was asked to explain
accusations that he
attempted to interfere with police investigations and hid
two luxury cars
police have linked to the fraud case.
Michael
Nyamazana, the whistle blower from the now defunct Century Discount
House
which was defrauded of $22 billion by ENG said he had been invited to
a
meeting at Chiyangwa’s office by Muponda.
"Chiyangwa said he had an
indirect interest in ENG. He indicated that he was
prepared to offer assets
so that the discount house got its money back,"
Nyamazana told the court.
“Chiyangwa said there was no cash but something
could be worked out and
suggested that he would make property available
within 23 days.
"His
interest in ENG extended to a number of shares that had been
purchased…the
shares, which were bought on his behalf amounted to 40
percent," he
said.
He also told the court that during the course of the year they
noticed that
some companies linked to ENG which had the same directors were
dominating
the 20 top shareholders list.
‘‘We noticed these new
entries and we inquired who was the owner. ENG
confirmed they were their
companies. They said the shares were purchased for
Chiyangwa," Nyamazana told
the stunned court.
In court, Chiyangwa claimed that he had been
approached to mediate as member
of the notorious black empowerment
organisation, the Affirmative Action
Group which has been behind the seizure
of Asian businesses in the second
largest city of Bulawayo.
"I got
involved in this case when Nyasha phoned saying he wanted to see me
and I
thought it was any other business. On 22 December they came to my
house and
said they were rushing to a meeting. Watyoka and Muponda said they
wanted to
discuss with me but they hurriedly went away," Chiyangwa said.
Chiyangwa
told the court that on December 27, he received a text message on
his mobile
phone from Watyoka stating that he Watyoka, Muponda and Elan
Suisse were in a
meeting with members of the Central Intelligence
Organisation
(CIO).
He further told the court that Watyoka called him around 10pm,
saying the
CIO officers had become violent. Chiyangwa later went to the
police station
where he saw the duo and the officer in charge of the station.
Details of
the meeting were not disclosed.
Defence lawyer Eric
Matinenga has submitted in his bail application that
Chiyangwa had intervened
only to protect depositor’s interests, and to save
the company from
collapse.
The prosecution called Inspector Peter Magwenzi attached to the
Criminal
Investigations Department who was part of the investigating team who
said
that they recovered two cars from Chiyangwa’s house.
"We
interviewed the two accused persons and at first they said they had
three
motor vehicles but it later turned out that they had seven
motor
vehicles.
"We then recovered two motor vehicles a BMW Z4 and
another unidentified BMW
which was being used by Chiyangwa’s son." The
detective told the court.
Magwenzi however said the two suspects insisted
that Chiyangwa had three
cars, although he denied this and refused to
surrender them to police.
"After we threatened to arrest him for trying
to defeat the course of
justice, he then indicated that the vehicles were
with Vivian Mwashita
(Mwashita is a former Zanu PF MP)," Insp Magwenzi
said.
He said Cde Chiyangwa then facilitated that the vehicles be
surrendered to
CID Headquarters.
Other vehicles including a BMW X5,
Mercedes Benz C320, BMW 330i, which were
recovered were not registered in
ENG’s name but individuals’ names and some
other companies. The police say if
the cars were acquired with investor
funds then they should have been
registered under the company name.
IOL
Gold may soon be Zim's only legal tender
January 07 2004
at 02:05AM
By Basildon Peta
Gold may soon
become the only legal tender in Zimbabwe.
This bizarre scenario does not
seem implausible for embattled Zimbabweans.
They now have to contend with the
fact that major shops and supermarket
chains are refusing to accept
bank-certified cheques from several
established commercial banks amid reports
that some may collapse because of
liquidity problems.
Because of the
shortage of Zimbabwe dollars, many customers have resorted to
using
bank-certified cheques for commercial transactions. It was also easier
to use
such cheques because of the huge wads of Zimbabwe dollars required
for simple
purchases.
With official inflation at 619 percent, Zimbabwe dollars have
become
worthless and piles of them are needed to buy a simple breakfast of
bread,
milk and eggs.
'We will soon be unable to buy
anything'
Many retailers have put "no cheques accepted" notices in their
shops because
they fear these might fail to be honoured by affected
banks.
The situation has been exacerbated by panic withdrawals of the
already
scarce Zimbabwe dollars by nervous depositors after the Reserve Bank
of
Zimbabwe (RBZ) announced that it would no longer help troubled
financial
institutions.
Shoppers interviewed in Harare on Tuesday said
the refusal of businesses to
accept cheques could only worsen their
plight.
"Bizarre things happen here one after another. Maybe we will soon
be unable
to buy anything because we won't get cheques accepted and we won't
have the
Zimbabwe dollars to pay," an irate Malvern Choto
said.
Despite the country's high inflationary environment, requiring
people to be
in possession of wads of notes, banks often restrict the amount
of cash a
depositor can withdraw.
The RBZ last year introduced
so-called bearer cheques to try to ease the
shortage, but these have not
solved the problem.
The bearer cheques should have been abolished last
month, but their use was
extended indefinitely because Zimbabwe dollars
remain in short supply.
Zimbabwe's once-vibrant financial sector is awash
with rumours that many
established banks might go under.
The Zimbabwe
Independent said most banks that had low liquidity levels had
been left
exposed and scurrying for financial cover after the new RBZ
governor, Gideon
Gono, demanded urgent recapitalisation. This was to take
into account rising
inflation eroding the institutions' shaky capital
positions and market
risk.
A well-known asset management company, ENG Capital, and its
subsidiary,
Century Discount House, have since been shut down by the RBZ -
and two
directors were arrested - after they failed to account for an
estimated
Z$80-billion (about R6-million) in investors' funds. - Independent
Foreign
Service
VOA
Opposition Members Attacked in Zimbabwe
Peta
Thornycroft
Harare
08 Jan 2004, 14:51 UTC
One opposition
activist was killed and at least two more injured in the
first reported case
of political violence this year in Zimbabwe. Victims say
they were attacked
by members of the ruling Zanu-PF party.
The dead man has been identified by
his friends as Alexander Chibega, a
peasant farmer who returned to his home
area 40 kilometers north of Harare a
month ago. He was reportedly buried
immediately after his body was found by
people in the area.
His
neighbors say he was a member of the opposition Movement for
Democratic
Change and has been living in Harare since violence erupted in his
home
district shortly before the 2002 presidential election.
According
to two of his friends, now in a Harare hospital, Mr. Chibega and
others were
attacked late Monday by a crowd of about 40 ruling-party youths.
The dead
man's wife was taken to a nearby government hospital.
One of the injured,
60-year-old Enias Mutsonobaya, was taken to a private
hospital in Harare,
where he underwent surgery. Human rights monitors and
medical staff treating
him and at least one other person injured in the same
attack, say Mr.
Mutsonobaya had also recently returned to his village,
Madziwa, that he fled
for safety reasons two years ago. Because of political
violence, the area
where the dead man and his injured friends come from is
considered a no-go
area for many reporters and human-rights workers.
Assistant commissioner
Wayne Bvudzijena says police are investigating the
incident.
Yahoo News
Hunger kills 65 people in Zimbabwe's second biggest
city
2 hours, 17 minutes ago
BULAWAYO, Zimbabwe (AFP) -
Sixty-five people, most of them children under
the age of five, have died of
malnutrition and other hunger-related causes
in the Zimbabwean city of
Bulawayo over the past five months, the city
authorities said.
In a
report released this week, the Bulawayo City Council said 43 people
died of
malnutrition between August and September last year while 22 others
succumbed
to hunger between October and December.
The report says the highest
number of malnutrition deaths in the city, the
country's second largest, were
of babies and children between the age of one
month and five
years.
Among the dead were three adults aged between 60 and 70.
The deaths come just before expected publication by the
Zimbabwe
Vulnerability Assessment Committee, a coalition of humanitarian
aid
agencies, of its assessment of the food situation in urban
areas.
The United Nations World Food Programme (WFP) has warned that
the food
situation is becoming critical in the country's urban areas, which
have not
been spared food shortages and drought.
Last June the WFP
launched an international appeal for 197 million dollars
to feed more than
five million people facing starvation in Zimbabwe but
there is still a
111-million-dollar shortfall.
A Market Assistance Pilot Programme
launched last year by the US Agency for
International Development to provide
urban dwellers with cheaper sorghum
meal has benefitted only some of them,
the authorities say. - AFP
VOA
Zimbabwe Government Threatens to Abolish Uniforms at Some
Schools
Peta Thornycroft
Harare
08 Jan 2004, 16:38 UTC
The
Zimbabwean government is threatening to abolish uniforms at some
schools
because they have become too expensive. The sharp increase in the
price of
uniforms follows massive school fee hikes. There is concern that
the
increased costs of education may result in thousands of children not
going
to school this year.
The government made its threat Wednesday,
saying while school uniforms are
compulsory, no school has the right to bar
children without uniforms.
Making the announcement, Secretary for
Education Thompson Tsodzo said the
directive was a response to appeals by
parents against what he called
unauthorized hikes in uniform
prices.
This year, parents are being asked to pay as much as three times
last year's
price for school uniforms. The prices are far beyond the ability
of most
Zimbabwean workers.
Children at all government schools and
most private schools in Zimbabwe are
required to wear some kind of uniform,
and children whose parents can not
afford them are normally not allowed to
attend.
Mr. Tsodzo also warned school heads against increasing school
fees without
government approval.
Most schools in Zimbabwe have
announced that their fees would be going up
substantially this year. Some
schools have announced fees increased by as
much as 2,000 percent.
The
school fee hikes have led to fears that many parents, already burdened
with
an inflation rate 620 percent, will not be able to send their children
to
school this year.
Yahoo News
Consumer goods suddenly appear in Zimbabwe ...
at a price
Thu Jan 8,11:12 AM ET
HARARE
(AFP) - Basic consumer goods have suddenly appeared in
Zimbabwe's shops -- at
a price -- while the cost of big-ticket items
has
plunged.
Bread, sugar, cooking oil, milk, corn-meal
and wheat flour, scarce
throughout 2003, can now be found on almost all
supermarket shelves in
Harare but the prices have doubled from last year.
Petrol stations are
displaying huge posters advertising the fuels they are
selling and motorists
can even shop around for lower prices.
The changes -- after a two-year food crisis which obliged the country
to seek
foreign emergency aid -- are due to the scrapping of price controls
and
changes in consumption habits, economists said.
"The shortages
were due to the price controls which had been
introduced to cushion people
against the increasing inflationary trends ...
but since the lifting of price
controls, there is viability," said Sam
Mapungwana, an economist with the
Zimbabwe National Chamber of Commerce
(news - web sites) (ZNCC) in an
interview.
Food and fuel queues, which had become a daily grind
for many
Zimbabweans, have suddenly disappeared.
"Even
foreign currency is now readily available (on the unofficial
market)" said
ruling party lawmaker David Chapfika.
Economists said an
oversupply of foreign exchange on the parallel
market, coupled with the
uncertainty surrounding the central bank's upcoming
exchange rate auctioning
system, has led to rates tumbling this month by
about 30
percent.
A television set which cost 2.7 million Zimbabwean
dollars a few weeks
ago now sells for 1.6 million dollars (2,000 US dollars
at the official
rate, 355 at the parallel rate). A refrigerator now sells for
2.7 million
dollars instead of 4.4 million.
The government
relaxed the price controls it had slapped on selected
basic goods and
services in the last quarter of 2003. It even deregulated
the petroleum
industry, allowing companies to import their own fuels.
"The
major issue was obviously the lifting of price controls,"
Chapfika told
AFP.
University of Zimbabwe economist Innocent Matshe said that
in addition
to the removal of price controls, consumers' purchasing power had
been
heavily eroded by inflation, currently at more than 600 percent,
forcing
many to change their buying habits.
"The consumers'
ability to buy things has been eroded. They are buying
less," he
said.
"There is an adjustment in the way the Zimbabweans are
consuming,"
Matshe said, adding: "People no longer can consume certain
products such as
sugar, as much as they used to do. They have cut back on how
much they can
consume and how."
Critics had long opposed
price controls, viewing them as a populist
policy aimed at ensuring support
by politicians during national elections.
Zimbabwe's economy
has been in a nose-dive in recent years with
international support drying up,
and rates of inflation and interest
skyrocketing to record
highs.
A two-year food crisis has meanwhile seen the country
seeking
international humanitarian aid to feed millions of people faced
with
starvation.
The city council in Bulawayo, the
second-biggest city, reported this
week that 65 people, most of them children
under the age of five, had died
of malnutrition and hunger-related causes
there over the past five months. -
AFP
FinGaz
ENG saga: One trillion dollars at risk
Sunsleey
Chamunorwa
1/8/2004 7:19:40 AM (GMT +2)
THE crisis-hit
financial sector, the one time odd shaft of light in
the economic melt-down,
could face even more slippery banana skins as it
emerged yesterday that asset
management companies, with their backs firmly
against the wall, have more
than a trillion dollars worth of investors’
funds under their
portfolios.
Impeccable industry sources said that the Association
of Asset
Managers has just advised the country’s monetary authorities that
asset
management companies’ combined portfolios were well over a trillion
dollars
at a time when most of the asset management companies are teetering
on the
edge of bankruptcy.
This figure is equivalent to
almost 13 percent of the country’s
national budget for the 12 months to
December 2004.
The information was availed to the monetary
authorities after the
Reserve Bank of Zimbabwe (RBZ), up until now accused of
sleeping on the job,
sought to jettison what could have been a deeply
embarrassing debacle if the
asset management companies had continued to
operate outside the law without
proper supervision and
monitoring.
The revelation has sparked off fears of an even
worse-than-expected
crisis in the financial sector, which has become a staple
of the local media
over the past few weeks, given that only about 15 of the
country’s heavily
undercapitalised 70 asset management companies are
registered.
While he gave a glimpse of the potential impact of the
risk posed to
the financial sector by asset management companies, the RBZ
governor, Gideon
Gono, had not indicated the magnitude of their portfolios,
which were
erroneously thought to run into not more than tens of billions of
dollars.
The disclosure on the magnitude of the funds being managed
by these
companies comes as the financial sector, going through a severe
crisis of
confidence, cratered last week with the collapse of ENG Capital
Asset
Management, where investors risk breathtaking losses with the wiping
out of
billions of dollars of their funds.
ENG, which came on
stream only a year ago, managed about $150 billion
worth of investors’ funds.
The company’s management is said to have spirited
away $61 billion from
investors’ funds although authoritative sources say
this figure is
conservative.
It is not only the investors who are feeling the
sharpest edge of the
knife but some sprawling financial institutions are also
feeling the pinch
as there has been a run on their deposits. The institutions
have since
admitted that they are now facing a liquidity crunch.
With fears that more asset management companies could implode under
their
absurdities, investors seeking to escape to the nearest underground
bunker
this week reportedly rushed to withdraw their funds, signalling a
deep
alienation from the asset management companies. Several of these
investors
were however given cheques they could not cash because the
companies did not
have money.
The crisis at ENG, widely seen as a tip of the iceberg
in a sector
with probably some of the country’s most voracious acquirers of
ill-gotten
wealth, was blamed on top management’s ineptitude and
malfeasance.
Market watchers were yesterday unanimous that the
unfolding crisis at
the unregistered ENG where the youthful management team
is accused of
cooking the books and shading the truth among others, showed
that there was
always a dark side to the financial sector which not only
notched up
phenomenal growth over the past few years, but is not about to
call time on
expansion.
They added that the ENG saga also gave
credence to central bank
governor Gono’s assertion that the underground
nature of the asset
management companies posed a significant risk to the
financial sector.
Gono, they said, had a compelling case against
the asset management
companies which, he said, would now fall under the
direct supervision of the
central bank with effect from this
month.
Meanwhile, in a series of startling events, with the central
bank, a
watchdog previously accused of not barking, finally waking up to
its
responsibilities, it has also emerged that its quest to ensure stability
in
the financial sector could spark off a political storm. The
Financial
Gazette can reveal that as the markets digest the potential impact
of the
latest developments in the financial sector, the situation now has
political
undertones as it has rubbed influential politicians the wrong way.
It is
reliably understood that plans have since been mooted to lobby
the
authorities to "clip Gono’s wings".
Gono, who moved to the
central bank last December, is being accused of
targeting certain banking
institutions. Within the corridors of the ruling
party, ZANU PF, whose
officials have interests in some troubled
institutions, Gono is being accused
of having sold out with his monetary
policy, which sought to clean up the
banking sector.
On one hand, steeped in a deeply-rooted political
patronage system,
some banks which are rocked with insolvency have been known
to practice
crony-capitalism—whereby they pump funds to politically
well-connected
businessmen who run up large debts in misguided expansion
plans. They are
reportedly turning to these politicians for
protection.
On the other, some senior members of the opposition
Movement for
Democratic Change were reportedly miffed with the central bank’s
move in the
sector and they are accusing Gono of targeting "independent
banks
sympathetic to the opposition".
FinGaz
ENG saga: Chiyangwa implicated
Zhean
Gwaze
1/8/2004 7:20:08 AM (GMT +2)
MAVERICK business
magnate and ZANU PF chairman for Mashonaland West
Province, Phillip Chiyangwa
(right), has been caught up in Zimbabwe’s worst
financial scam that exploded
recently at ENG Capital Asset Management
involving a massive Z$61
billion.
The controversial legislator is being accused of
interfering with one
of the complainants in the unfolding ENG saga, which has
seen two of the
asset management company’s directors arraigned before the
Harare magistrates
courts.
Chiyangwa, known as a fierce
proponent for black economic empowerment,
allegedly tried to persuade a
director of Elan Sussie Financial Advisory
Service to withdraw charges
preferred against ENG and settle the matter out
of court.
Elan
Sussie Advisory Service claims to have been defrauded of over
$259 million
invested with ENG.
Contacted for comment yesterday, the ZANU PF
legislator said he only
tried to arrange a "deal" with Patrice Dhliwayo, one
of the directors of
Elan Sussie over their $259 million debt before the
arrest of the ENG
bosses, Nyasha Watyoka (28) and Gilbert Muponda
(32).
Appearing in the Harare magistrates courts yesterday,
Chiyangwa said
Watyoka sent a message on his mobile phone on December 27 2003
at 8:37pm
indicating that ENG directors were having a meeting at Chiedza
House, Harare
with the directors of Elan Sussie, who had brought in Central
Intelligence
Organisation officers.
The legislator had to pass
his mobile around for court officials to
view the message he had saved. At
that time, Chiyangwa said, they were
demanding $18 billion, which they had
invested in ENG.
Chiyangwa went to the place and advised the
directors of both Elan
Sussie and ENG to settle their scores at the police
station.
He later followed them to the Harare Central Police
Station where the
legislator spoke to the officer-in-charge after he found
both parties
arguing outside.
The court had to be adjourned
before Chiyangwa finished his
presentation because court officials had to
make transport arrangements for
the accused ENG directors.
Sources interviewed by The Financial Gazette yesterday said it was
puzzling
that the police claimed to have recovered two cars belonging to the
two ENG
directors at Chiyangwa’s home.
It is suspected that Chiyangwa had
also tried to assist ENG directors
in getting the regulatory approvals for
Century Discount House, which they
acquired from Century Holdings for Z$1.5
billion.
It was not immediately clear whether the legislator was
offering his
services for free.
Chiyangwa told The Financial
Gazette that Muponda and Watyoka had left
their two cars, and not eight, when
they were picked up by police at his
home.
"The two cars were
fetched from my house by the police and it is in
their statements that the
number of cars was two. The guys never stayed at
my house and these reports
are only meant to dramatise the issue.
"Those are irresponsible
remarks by the prosecutor because I am a
Zimbabwean and politician, what is
so funny about my association with
anyone?" he asked.
A Criminal
Investigations Department Inspector Magwenzi confirmed in
court that the
police had found two vehicles at Chiyangwa’s house.
"We were told
by the accused that Chiyangwa had three cars and we
persuaded him to
surrender the cars, but he refused. Muponda was then given
a chance to phone
Chiyangwa by some of the officers and he said ‘mudhara
vapei mota
iyoyo’.
"We phoned Chiyangwa again and told him he was interfering
with the
court of justice and he indicated that the other vehicle was with
Vivian
Mwashita," Magwenzi said.
The other car was found parked
at Chiyangwa’s house, while the other
was being driven by Chiyangwa’s son.
Watyoka and Muponda also left some
Century Holdings share certificates, which
they had brought with them to
discuss their deepening
predicament.
Chiyangwa said he was only trying to assist the ENG
directors because
of his political connection with Watyoka.
"Watyoka comes from Mhondoro in my province and his uncle is the one
who
stepped down for me to get a provincial seat. It was when the young men
were
briefing me about their problems that I decided to assist them because
I
noted that Watyoka had an affiliation to the ZANU PF ruling party. That
is
how politics works," he said.
He said his association with
the Watyokas dated back to the ZANU PF
congress in 1999 held in the capital
during which the party’s politburo
blocked Chiyangwa’s nomination to the
central committee on the grounds that
he did not hold a party provincial post
at the time.
Levi Watyoka, he claimed, stepped down from the
Mashonaland West
provincial executive to pave way for Chiyangwa as the
province pressed on
with his failed nomination.
The flamboyant
businessman said Watyoka and fellow ENG director
Muponda phoned him just
before their arrest on new year’s eve seeking
assistance on how to solve
their mounting problems.
He said he had associated with the
directors because of his history as
a champion of black empowerment and he
had assisted them in negotiating
out-of-court settlements with some of the
disgruntled investors. He however,
refused to name them.
The
names of the investors who had agreed to an out-of-court
settlement were
handed over to the Reserve Bank of Zimbabwe before the
arrest of the
directors, according to the legislator.
Chiyangwa revealed that he
had also brokered a truce between ENG and
the African Banking Corporation
(ABC) when the two had a fallout involving
$1 billion in 2002.
The legislator described as alarmist and sensationalist the assertion
by the
state media that eight cars belonging to the troubled ENG were found
parked
at his Borrowdale home.
Chiyangwa said he could have averted the
arrest of the two, but their
lawyers took over the case and sidelined him in
the process.
"It is hysterical to criminalise matters of money
because the
directors of Unibank (Universal Merchant Bank) and ZBS (Zimbabwe
Building
Society) were not arrested when they had problems. We are the ruling
party
and the policies we make should determine our pace. It will not help
me
recover my money to go to the police or court."
FinGaz
More media restrictions on the way
Staff
Reporter
1/8/2004 7:23:32 AM (GMT +2)
IN what could
provoke widespread concern, Zimbabwe’s media regulatory
authorities are
reportedly mulling plans to tighten the current registration
requirements as
the future of The Daily News and its sister weekly, The
Daily News On Sunday,
increasingly appear perilous.
Impeccable government sources said
the Media and Information
Commission (MIC) and the Department of Information
and Publicity in the
Office of the President and Cabinet were formulating
amendments to the law
in order to tinker with the registration
requirements.
The sources said an additional requirement that a
majority shareholder
in a media house should also be a resident of Zimbabwe
could be included.
Currently the law only states that a majority
shareholder should be a
citizen of Zimbabwe, but the new amendments could see
the majority
shareholders being required to be resident in the country as
well.
"There was a meeting last week to discuss possible changes
to
registration requirements and one change that is likely to be introduced
is
the requirement that the majority shareholder of a media organisation
should
be a permanent resident of Zimbabwe," a source told The Financial
Gazette
this week.
"This would be over and above the requirement
that the majority
shareholder should be a citizen of Zimbabwe . . . in other
words, one has to
be a citizen of Zimbabwe who is a permanent resident of
Zimbabwe."
The ANZ, which publishes The Daily News and The Daily
News on Sunday,
is battling to get registered after it was forcibly closed by
the government
in September last year for allegedly operating without a
licence after it
lost its Supreme Court challenges to the requirement that it
registers with
the MIC.
The ANZ’s majority shareholder, Strive
Masiyiwa, resides in South
Africa.
The executive chairman of the
MIC, Tafataona Mahoso, pleaded ignorance
of any such moves, saying that if
there were any, there could be taking
place in the law-making process of
which the MIC is not part to.
"It is ridiculous to ask me about
such things because laws are made by
Parliament . . . all we are there for is
to implement the laws not to make
them," Mahoso said. "There is no Parliament
here (at the MIC)."
FinGaz
Doctors, medical aid societies trade
accusations
Staff Reporter
1/8/2004 7:25:16 AM (GMT
+2)
PRIVATE doctors have called on the police to probe the
activities of
medical aid societies, as the finger pointing between the two
feuding
parties enters its third week.
The private doctors have
accused some medical aid societies of
converting contributions to their own
use and diverting them to fund
speculative deals.
Health experts
warned that the tug-of-war between the societies and
the private medical
practitioners would only serve to further cripple the
health delivery sector,
which is on the verge of collapse.
David Parirenyatwa, the Health
and Child Welfare Minister, said there
was nothing wrong with an inquiry. His
major concern at the moment is,
however, to get the two parties to agree on
the payment mode.
"Those who want an inquiry should send me their
suggestions in
writing," he said.
The private doctors declared
last month that all patients would be
required to pay cash up-front. Medical
aid societies would then reimburse
those on medical aid the standard
rate.
The doctors alleged that it is taking up to 60 days for
medical aid
societies to honour their claims and by the time they get paid,
the money
would have been eroded by inflation.
They have also
increased their consultation fees by over 100 percent.
It now costs Z$46 200
for medical consultation, up from Z$20 000.
Medical aid societies
concurred that they were delays in reimbursing
the doctors because of the
huge number of claims received.
An official with CIMAS accused the
private doctors of greed, saying
they were putting business ahead of
patients’ welfare.
The official also accused the private doctors of
overstating their
claims, adding that they were always unhappy with the
revised reimbursements
they were receiving after assessments.
"Claims are assessed for a period of between four to six weeks and
the
doctors have been aware of this situation," said the
official.
"Some doctors have been overcharging on their claims and
sometimes
after our assessments, we give them half of their claim because we
realise
the figures have been inflated. So this development is meant to bypas
the
medical aid society and deal with the unsuspecting
patients."
Zimbabwe Medical Association secretary-general Paul
Chimedza denied
the allegations.
"The medical aid system has
ruined the private practice. Medical aid
societies owe doctors millions in
claims and this cripples the whole system.
Their actions have led to the
exodus of medical personnel and we have lost
75 percent of our membership due
to the delays in payment in Bulawayo.
"A commission of inquiry must
be set up to probe the operations of
medical aid societies because as
non-profit making organisations we are
surprised to see them on television
donating millions of dollars," Chimedza
said.
FinGaz
ZANU PF, MDC rift set to widen further
Cyril
Zenda
1/8/2004 7:29:44 AM (GMT +2)
THE rift between
Zimbabwe’s bickering political parties could remain
wide open this year as
both the ruling ZANU PF and main opposition, the
Movement for Democratic
Change (MDC), oil their campaign machinery ahead of
the watershed 2005
parliamentary elections.
Political analysts this week said chances
of an end to the political
impasse in Zimbabwe look slim as they see little,
if any, change for the
better this year.
If anything, things
could change for the worse as the rot on the
economic front could push
players on both sides of the political divide to
extremes.
Despite pressure for dialogue between the feuding parties, ZANU PF,
which has
ruled Zimbabwe since independence in 1980, has kept an
arms-length
relationship with the MDC, headed by veteran trade unionist
Morgan
Tsvangirai.
President Mugabe, who impressed the world
with his reconciliation
stance with the Ian Smith regime, has been ducking
the round table with the
MDC, contemptuously referring to Tsvangirai’s party
as a front for the
British.
He has also diverted attention from
his government and party by
introducing the succession debate, which has
threatened to split ZANU PF
right through the middle, and by picking verbal
fights with white members of
the Commonwealth.
This has,
however, not helped the 80-year-old leader’s situation as
the economic
decadence has continued unabated, courting the intervention of
regional
leaders namely Thabo Mbeki of South Africa and Olusegun Obasanjo
of
Nigeria.
"Naturally, I am not a pessimist, but looking at the
circumstances on
the ground, I can say there will be no positive change on
the political
scene. any change could be for the worse unless some unforeseen
political
event takes place," said University of Zimbabwe (UZ) political
science
lecturer Eldred Masunungure.
"Unless the President
(Robert Mugabe) resigns or retires, then I don’t
think there would be
anything positive to expect. If anything, the year
could be the nastiest
since independence."
Masunungure said with preparations for the
crucial 2005 general
elections picking up tempo, it would be unrealistic to
expect the country to
ease out of the political morass in which it has been
languishing over the
past four years.
"Any political change — be
it positive or negative — will depend on
what happens to ZANU PF," said
political analyst Ernest Mudzengi.
"If it (ZANU PF) decides to
listen to the people and take advice from
the opposition and civic groups,
then there could be some change for the
better, but if it chooses to remain
arrogant, then there will be more
problems this year. There could actually be
mass protests similar to those
that took place in 1998 and these would be
driven largely by economic
hardships," Mudzengi said.
Most
economic analysts see Zimbabwe’s economic problems, which have
been worsening
over the years, as the main factor in setting the mood of the
ordinary
people.
Most of President Mugabe’s critics accuse him of
mismanaging the
economy, but the veteran leader denies the charges, instead
blaming it on a
consecutive four-year drought and the insidious work of local
and foreign
detractors who he charges are bent on undermining the country’s
sovereignty
and derailing his land reform exercise.
John
Makumbe, also a lecturer at the UZ, agreed that to expect a
change for the
better this year would be expecting too much.
"The regime is not
about to fold up and depart, so the only things one
can expect this year are
more demonstrations, more strikes and possibly some
dialogue," Makumbe
said.
Makumbe said the possibility of talks between the two parties
was
likely this year, but they would not focus on anything fundamental as
the
ruling party would only seek to use them to buy time while it prepares
for
the 2005 elections.
He said to avoid international pressure,
ZANU PF would seek to seem to
be engaged in talks of some sort with the
litigious opposition which, with
the support of the international community,
is challenging President Mugabe’
s legitimacy.
Mudzengi
concurred with Makumbe: "ZANU PF is in power and its interest
is to remain in
power so its intention of going into ‘dialogue’ with the MDC
would be to
create some breathing space for itself."
He said if the opposition
was not careful, the crafty ZANU PF could
use the "dialogue" to come up with
what he called an "elite pact" similar to
the one signed between it and PF
ZAPU in 1987 after similar talks had
negotiated PF ZAPU out of
existence.
Makumbe, however, warned that if the opposition was
fooled into going
to next year’s parliamentary elections under the current
electoral system,
it would be "rigged out" because the present system ensures
that only ZANU
PF wins an election.
"The MDC would be fooling
themselves if they go to elections with no
changes to the terms and
modalities under which elections are held," Makumbe
said. "They will be
simply rigged out like in 2000 and 2002."
The MDC and other civil
society movements like the National
Constitutional Assembly (NCA) have
threatened that this year they will
organise mass protests to force President
Mugabe to agree to embrace
all-round reforms and a re-run of the
controversial 2002 presidential
election.
The government, which
has over the past four years been increasingly
dependent on the jackboot for
survival, this week sternly warned that it
will crush any activities by
forces that it dismisses as being sponsored by
foreigners
FinGaz
Comment
Break the egg to make the
omelette
1/8/2004 7:13:28 AM (GMT +2)
THE
financial sector, that erstwhile odd shaft of light in the
economic gloom, is
in turmoil. This not only gives credence to claims that
its foundation was
sunk on shifting sands, but also brings into disrepute
the black economic
empowerment drive where the country has seemingly been
navigating without a
compass.
This is especially more apparent now when the distinction
between
banks and other financial institutions is increasingly becoming
blurred
against a background of a proliferation of mostly unregistered
and
undercapitalised asset management companies. These have been used
as
conduits for speculative practices by some banks under a complex web
of
influence-peddling and back-scratching relationships.
Lingering concerns about the financial health of the sector had, for a
long
time, percolated through the market, casting a pall over its stability.
And
as we speak, there are genuine concerns that, against the still
unfolding
crisis, the creaking financial sector could move into even deeper
trouble — a
crisis from which the economy cannot remain insulated.
The
situation in the financial sector, where asset management
companies with a
capital base of $10 million have been managing investments
of several
billions of dollars, has always been unsustainable. It was a red
flag the
Central Bank, which controls the country’s financial levers, could
not ignore
without being charged with neglect.
The untenable situation clearly
shows that it has been nothing more
than false impressions in the financial
sector which, as it turns out, has
been skating on thin ice. We believe that
to have hoped that this situation
of an egg-shell-thin veneer of stability
would improve without the
intervention of the RBZ would have been hopefulness
bereft of realism.
Predictably, operators in the sector who, in our
view, have been
painting a rosier-than-real picture of their situation as
window-dressing
for the public’s benefit but admit in private that they have
not been
operating above board, have been ruffled. And they already want the
Central
Bank governor’s head on the stick. This is why the early adulation
that came
with Dr Gideon Gono’s appointment as Governor of the RBZ is fast
evolving
into scepticism and will inevitably soon turn into outright
hostility. But
that should be the least of Gono’s worries because it comes
with the
territory. He should crack the whip in the comfort that, like the
Shona say,
mvura bvongodzeki ndiyo garani (turbulence precedes
calm).
Instead of shirking his responsibility to clean up the shaky
financial
sector, this should, in fact, strengthen his determination not only
to
correct, but demystify what was increasingly becoming the financial
sector’s
terrible aura. Gono, who should know that in order to make an
omelette, you
have to break the egg, should not take his foot off the pedal
but, in fact,
tighten the screws because there is luminous evidence of a
sector in
distress.
The Central Bank should act as if it was
impossible to fail and press
ahead with its plan of action as spelt out in
the monetary policy statement
because that is the only sure-fire way of
putting paid to the madness in the
financial sector. This will restore sanity
and integrity. Indeed, there is a
compelling case against the unregistered
and unscrupulous asset management
companies whose future increasingly appears
perilous. Already, several
investors have burnt their fingers following the
debacle at ENG Asset
Management.
Having been left in the lurch
to the tune of $100 billion,
shell-shocked investors caught up at the scene
of this financial accident
can only puzzle and wait. Not only that, but the
run on some of the
so-called banking high-flyers, the clearest sign yet, of
the growing
nervousness on the part of risk-averse depositors in the face of
the turmoil
in the financial sector, underlines how all embracing the malady
in the
sector has become.
The chaos at ENG, where we cannot rule
out the possibility that those
who founded the company have always been
intent on deception, could be
nothing more than the proverbial tip of the
iceberg. This situation is not
only distressing to the investors’ psyches as
it is exceedingly costly to
their portfolios, but could have ripple effects
across the sector which
could, in turn, undermine investor confidence and in
the process weigh down
the economy.
Glossing over the problems
in the sector could, therefore, be an
expensive gamble given the disturbances
and disruptions that might arise
from the collapse of a bank or financial
institution. Even if it means those
shareholders of poorly managed distressed
banks should lose their investment
and control of their banks, then so be
it.
FinGaz
Let's stop moaning but act out of our numerous
problems
1/8/2004 6:51:06 AM (GMT +2)
Once again
we have come to the end of another challenging year. For
some it's been gloom
after gloom and yet for others things have never been
better.
Are we living in the same Zimbabwe, I wonder? I am sure if things were
that
good, you must have been one of those unethical, crooked persons or a
ZANU PF
supporter. Otherwise, how can anyone normal and ordinary be smiling
under
such tough conditions?
What is the difference between the two
perspectives or conclusions?
Let me start by telling you a tale of
two prisoners. As they sat in
their small tiny cell, the only thing that came
through their tiny window
was a little light. Day in and day out they looked
through the window.
One saw bars and this obviously brought in the
reality of anger and
hopelessness, but the other saw stars beyond and began
to see the
possibility of starting a new life in freedom.
So
what? The difference in their visions made a big difference in
their
lives.
Today, Zimbabwe needs people who can see beyond the obvious,
not the
nut and bolts type of people — those who want to do things the exact
same
way, as they have been told — nothing more or less. We have plenty
robots
but precious few new-idea people.
Zimbabwe seems to be
full of analysts, commentators and spectators but
a few players.
We need people with imagination, who think over time, who find ways to
make
improvements or increase efficiencies.
Let us leave the terraces
and go onto the playing field and have more
action, than talk, talk and
talk.
Some in business, who are risk averse and always finding
excuses for
not making decisions, have been hiding under "we are waiting for
the new
monetary policy".
I wonder what excuses are being given
now for failing to take
necessary action. Maybe the festive
season.
As expected, Reserve Bank Governor Gideon Gono delivered
the monetary
policy statement which is "exactly what the doctor ordered", but
what we
would like to see is how the doctor’s orders are administered and
whether
the patient sticks to the prescription.
The monetary
policy is what I can summarise as "delayed gratification"
which Scott Peck,
in his book, "The Road Less Travelled", defined as "a
process of scheduling
the pain and pleasure of life in such a way as to
enhance the pleasure by
meeting and experiencing the pain first and getting
it over
with".
Why pain now, we may ask? When we look at the generations
before us
and what they sacrificed for us to enjoy political and social
independence,
that should spur us to go a level higher if we are to be truly
independent.
This stage has been called many names but the most
popular one is
"Third Chimurenga".
This is necessary because
economic independence is a must for any
nation, race, colour or creed. Once
achieved, it brings about real freedom,
independence and human
dignity.
But it does not come without any pain. Remember no pain,
no gain.
I stand to be corrected but the economic issue is a
revolution of its
kind. So is the land issue. A revolution can be in many
forms.
Conventional and guerrilla warfares easily come to mind
because of the
history of this country.
It is easy to prescribe
from a leather chair, air- conditioned office
what we should do.
As President Mugabe once said, what we learnt when doing our various
degrees
does not state what to do when an economy is under siege. In short,
let us
stop being too bookish.
Soldiers correct me: When you go to war
with a specific plan on paper
and you find what is on the ground is
different, do you stick to your
original plan because you want to impress
others or you change the plan to
suit the situation?
For anyone
to expect results in the short-term is being naive. Results
will come once we
begin accepting that the land issue was, is, and will be,
a pressing
issue.
Whether we differ in terms of the method of acquisition, the
fact is
that there is no going back.
Therefore, how do we move
as a nation and make the best out of the
weapon of wealth we have recently
acquired?
For Zimbabwe to realise its full potential, we need
visionary leaders
who will see from the "cell window" the light at end of the
tunnel, leaders
who are able to break out of the conventional thought
patterns, leaders who
have confidence and dare to travel the untravelled road
and dare to take the
risk, were others would have chosen to stay safe and
secure.
We need people who are solution-orientated and not
problem-orientated.
But the trend in Zimbabwe is to get stuck in
the problem, moan and
groan to every person who cares to listen. We even go
down on our knees and
give God a vivid picture of the situation as if we are
saying God does not
know.
Eventually, we start sending
invitations for black-tie pity parties
and before we know it we are part of
the problem, our lives begin to revolve
around the problem, paralysis sets in
and the problem then defines who we
are.
We are doing everything
we can about the problems we face even flying
all over the world, putting
articles on the internet etc, except one thing:
devoting ourselves to finding
solutions.
What is life, if it is not really a series of pain,
trials,
tribulations, challenges and disappointments? Why allow ourselves to
get
paralysed by problems instead of committing ourselves to solving
them?
The other thing: we are so divided, we lack national pride
and are so
selfish.
Some of us are so greedy that it has become
our second nature.
Until we are truly sincere in whatever we do or
propose as government
or private sector, no solution will ever
work.
This is our country, our Zimbabwe and our future. Let us
unite and let
’s rebuild our nation.
I do not wish to apportion
blame to anyone. We all have a role to
play.
In whatever thing
we do let us ask ourselves: are we building the
nation or destroying
it?
Before blaming anybody, look at yourself in the mirror and see
if you
are faultless and, therefore, qualified to cast the first
stone.
.. Millicent Momb-eshora is a former radio and
television
personality.
FinGaz
Opposition MDC must perform or perish
1/8/2004 6:51:06 AM (GMT +2)
While it may be relevant for us to
talk about the establishment in
relation to ourselves, we must not make this
our pre-occupation for it can
be a negative exercise.
As we proceed
further towards the realisation of our goals let’s talk
more about ourselves
and our struggle and less about ZANU PF.
I never intended to write
a second part to this title but this is a
response to some of my readers who
feel that I am descending harder and
harder on the MDC. I must say these are
a minority of my readers and I must
confess I have a passion to be identified
with minority and disadvantaged
groups and where possible to be their voice.
That’s me!
We all have passions of one kind or the other. It
appears there is a
very serious problem of articulation and clarity on the
part of the
leadership of the pro-democracy movement.
Our hope
lies in the MDC as the official opposition party.
Civil society has
the obvious limitations of not being a political
party and the only weapon
that we have is our vote and we will use it
wisely.
What we are
simply saying is that those in political parties who want
our vote must adopt
concrete policies and programmes that we can identify
with, policies and
programmes that also address the fundamental concerns of
our particular
constituencies.
All the multiple civic organisations in Zimbabwe
have got their own
rationale for existence and they must also be accountable
to their members
in whatever stance they take on any issue.
If,
for instance, a civic organisation decides to openly side with a
political
party like the MDC, it has to satisfy its own particular
constituency that
such a stance is the best to adopt in the circumstances.
It can only be the
best when the political party being aligned to also seeks
in some way to
further the agenda of the particular civic group.
This does not
only apply in politics, but in business as well. In
fact, it is a truism of
all human and organisational dynamics.
To give a rather hyperbolic
example, you cannot have a company which
specialises in the manufacturing of
weapons of mass destruction entering
into a "strategic merger/partnership"
with a company which specialises in
the manufacture of dairy
products.
So if the MDC is serious about getting or retaining the
support of the
pro-democracy civic groups and other small opposition
political parties in
this country, it must come up with policies that, if any
of these groups
decides to side with them, it will not have headaches trying
to justify such
a move to their members.
This appears only
commonsensical but it is conspicuous by its absense
within the opposition
party.
The party’s advisors and consultants do not seem to be doing
their job
at all and it’s unfortunate, to say the least.
Joining
an alliance or popular front must not amount to total
abandonment and
surrender of one’s original and perculiar agenda but,
rather, the alliance
must enhance and enrich the diverse agendas of all the
allies.
For the MDC to expect all other small opposition political parties and
civic
groups to deviate from their manifestos and publicly stated objectives
in
support of their vaguely defined policies is simply political naivety.
The
MDC has had alliances with other small opposition political parties and
civil
society before, particularly in the "NO" vote campaign but this does
not by
itself and of itself guarantee continued support for the party even
when the
centre does not seem to hold anymore.
It is fundamental to realise
that while there are enemies in politics
as in any other human endeavours,
there are no permanent friends but
permanent interests.
The
worst thing that could happen to any struggle and endeavour is to
have
permanent definitions of friends and enemies.
An "enemies list"
must change with circumstances because it is a fact
of human and political
life that relationships are neither static, stable
nor stagnant, but
dynamic.
Individuals, orga-nisations and nations too rigid to
adjust to
flactuations crack and collapse. Similarly, too much flexibility
becomes
political notoriety and opportunism to the detriment of the
individual, the
organisation, the movement and the nation in relation to
their environment.
So the MDC must decide now whether it wants to
be a friend of other
small opposition political parties and civil society or
it wants to be
painted with the same brush as ZANU PF.
To choose
the latter option is political suicide. To choose the former
option takes
more than just a declaration of friendship at a press
conference or party
rally without increased and greater interaction between
leaders of the party
and other opposition political and civic leaders.
One wonders why
opposition political leaders and civic leaders avoid
and shun each
other.
It is really puzzling to some of us and what is even more
puzzling and
nauseating is the extent to which the leadership of the
progressive movement
has become afraid of new ideas despite changing
realities. Yes, afraid is
the word! They are paranoid and its pathetic, to
say the least.
Political parties seek political power. Civil
society does not seek
political power, but instead, seeks to limit it by
empowering the people.
Any political party that chooses to
antagonise civil society in its
entirety like ZANU PF, or a large section
thereof like what the MDC seems
bent on doing, creates a presumption within
the people that it does not want
its political power to be fettered and the
implications of unfettered power
are well-known.
so the onus is
on those seeking political office to rebut that
presumption by being "with
the people" in all their struggles, hopes and
aspirations.
The
point is that since it’s the MDC that desperately want the support
of civil
society and not vice-versa, it is them that must break the ice and
take the
initiative for a political courtship of the latter, and they must
bear in
mind that their rival suitor, ZANU PF, is also making very
charming
maneouvres. The die is cast and the year 2004 will decide who will
win the
bride and take her on a honeymoon in the 2005 general
elections.
But my honest opinion is that the picture is rather
gloomy for the MDC
because ZANU PF has its traditional support base intact
and is also making
significant inroads into the traditional MDC territory
while the MDC, apart
from exposing its support base to invasion, is doing
nothing to
counter-invade the ZANU PF territory. This is not to discourage
the
opposition but to emphasise the amount of work that needs to be done,
and
unfortunately, time is running out. Things are moving so fast in Zimbabwe
at
the moment. Its like a roller-coaster.
ZANU PF is now already
far ahead of the MDC in its preparations for
the next general elections. The
party is making giant strides in
consolidating and fortifying its power bases
by further patronising and
integrating its partner and tributary
organisations. Not that I support
political patronage but it’s a political
strategy and if those against whom
it is intended to operate let it pass them
they must not cry foul.
For the MDC to counter-balance ZANU PF’S
strategies they must come up
with their own policies and strategies that
appeal to their own partner and
tributary organisations as well as to ZANU
PF’s partner organisations like
the war veterans, war collaborators,
ex-detainees and ex-restrictees and so
forth. This will be an invasion of the
ZANU PF territory and if executed
with greater skill and precision, it will
certainly succeed. I will give a
few hints next week. Let’s make a
date.
.. Isaya Muriwo Sithole is a Harare-based legal
practitioner
FinGaz
Farmers set sights on 2004/5
season
Staff Reporter
1/8/2004
7:10:31 AM (GMT +2)
ZIMBABWEAN farmers are already
looking ahead to a better
2004/05 farming season after realising that the
current agricultural season
would be another major
disappointment.
Davidson Mugabe, president of the
Zimbabwe Commercial
Farmers Union (ZCFU) said all local farming organisations
had stepped up
efforts to mobilise funds for the procurement of inputs in the
coming
season.
The 2003/04 farming season has
flopped owing to the acute
shortage of inputs and uncertainty that still
shrouds the sector over land
ownership.
Agriculture experts predicted that output in the 2003/04
season could plummet
by as much as 50 percent this year. Mugabe said the
sector would not be
caught napping again next season.
He said: "We will not be
caught unawares this coming
season. Most of our members have agreed to
mobilise finance and inputs
starting this month (January) for the coming
season. The sector is
constrained because of the shortages of inputs, fuel
and farming implements.
" We are still battling and
everybody should be involved
to ensure a
complete
rejuvenation of the sector." Agriculture is the
backbone of Zimbabwe's
economy, accounting for 40 percent of the country's
gross domestic product.
It also provides an estimated 60 percent of the
inputs used in the
manufacturing sector. However, new and old farmers are
still struggling to
acquire seed, fertiliser and fuel, three months into the
cropping
season.
Mugabe said some farmers were still
battling with the
planting stages, which will obviously affect
yields.
Economic analysts and farmers'
representative
organisations have urged the government to implement strategic
policies to
turn around the sector before it faces total
collapse.
" The agricultural sector should be
handled in a holistic
manner. We will liaise with the government on how best
to market cotton,
wheat and maize in a bid to entice farmers into farming.
The government only
offered a solu tion for tobacco growers in the new
monetary policy," he
said. Receipts from tobacco, which were meant to prop up
the critical
foreign exchange situation, have dropped by 51 percent compared
to last
year.
Tobacco has been Zimbabwe's single
largest export earner,
contributing a third of the nation's annual foreign
exchange receipts. The
Early Famine Warning Systems Network has warned that
the country would
produce less than 66 percent of its food requirements of
1.2 million metric
tonnes due to the input
shortages.
Fertiliser companies have issued a joint
statement that
they will not be able to meet demand because of the shortage
of foreign
currency needed to procure raw materials.
FinGaz
You can’t fool all the people all the time
1/8/2004 7:16:18 AM (GMT +2)
IN a period marked by political
bombshells and melodrama, one thing
that did not come as a surprise to me as
2003 drew to a close was the
outcome of a study on Zimbabwe’s land reform
programme.
Conducted by the Mass Public Opinion Institute (MPOI),
the survey,
which was funded by the Konrad Adenauer Foundation, confirmed
what most
objective people have known all along. That is the fact that while
in
principle, land redistribution to redress historical imbalances
and
injustices was a noble cause, the haphazard and expedient manner in which
it
was embarked upon cancelled almost all the benefits that would have
resulted
if proper planning and strategic thinking had taken
place.
Press reports towards the end of last month indicated that
the
majority of respondents interviewed in the MPOI survey had
negative
perceptions on most aspects of the programme which they were asked
to
comment on.
Not surprisingly, the majority of the people
sampled perceived the
land reform programme as a vote-buying exercise that
has not benefited the
generality of the target group — families living in
congested rural areas.
And this is not an aberration or a figment of these
respondents’
imaginations. Access to land became such a prerogative of the
elite and
politically well connected that even the government itself could
not ignore
the scandal. After the Utete commission confirmed that some chefs
were
multiple farm owners, the Minister of Special Affairs in the
President’s
office, John Nkomo, has been tasked with cleaning up the mess
and
regularising the situation.
It would have been a routine
reaction for government propagandists and
apologists to dismiss the findings
of the MPOI study as the work of
"imperialists and their puppets" if one of
the effects of the chaotic land
reform programme, namely its devastating
impact on agricultural production,
had not resulted in massive and chronic
food shortages.
As things stand, even if government had the best
spin doctors in the
world, it would still be a very tall order to convince a
starving population
that they are better off than they were a few years ago
when food was
plentiful and affordable. The prevailing state of affairs is
particularly
deplorable when one considers that the hardships Zimbabweans are
enduring
now are not the result of some natural disaster that struck without
warning.
This is a situation deliberately brought about by the government on
the spur
of the moment in a desperate bid to win back the support of an
electorate
that was determined to ditch the ruling party if the parliamentary
elections
of 2000 and the Presidential polls held in 2002 had been free and
fair.
The findings of the MPOI survey may be bad news for the
government but
they represent a beacon of hope for all those who long for
true democracy
and the finding of lasting solutions to the problems
bedevilling Zimbabwe.
I find it specially encouraging that despite
the torrents of
unremitting propaganda and self-righteous rhetoric they have
been bombarded
with over the past few years, the people of Zimbabwe have not
lost their
capacity to form discriminating judgments. They have not allowed
the
relentless repetition of catchwords the ruling party wishes to be
acceptable
as true, the arousal and rationalisation of passions that the
party can
exploit and the suppression of facts it wants ignored, to cloud the
evidence
of their own senses and experiences.
If there is a
lesson to be learned, it is that the government’s
over-reliance on
heavy-handed tactics to silence opponents alongside a
system of political
patronage as a reward for conformity, has failed
spectacularly to blind
ordinary people to its failings shortcomings. The
findings of the MPOI survey
are a resounding thumbs down for the rampant
culture of impunity in official
circles.
In addition, the mountainous dosages of anti-American and
anti-British
propaganda force-fed to the public via state-controlled media
have not
resulted in hatred for westerners in general and Tony Blair and
George Bush
in particular, who are the government’s favourite scapegoats
routinely
blamed for the country’s self-inflicted problems. If anything, the
constant
denigration of Bush and Blair and their steadfast and statesmanlike
refusal
to respond to Harare’s rantings has had the reverse effect of
elevating
their countries’ way of life to taboo status, making it
irresistibly
attractive to weary Zimbabweans. Impoverished by their own
government’s
mismanagement and ruination of a once thriving economy,
thousands of locals
have sought economic refuge in Western countries. This is
one phenomenon the
Land Reform Programme should have curbed had it been
embarked upon for the
correct reasons.
The government’s failure
to mislead and deceive the public as
demonstrated beyond doubt by the MPOI
survey is also attributable in no
small measure to the valiant efforts of the
independent media in Zimbabwe to
report events truthfully and objectively in
very difficult circumstances.
They have earned a feather in their cap for
striving to present alternative
viewpoints despite being severely hamstrung
by the provisions of the
misnamed Access to Information and Protection of
Privacy Act (AIPPA). Once
again relentless harassment of editors and
reporters in this sector and
constant denigration of their coverage of events
has not immunised readers
against their hunger for the truth, hence the
popularity of privately-owned
newspapers.
The question that now
begs an answer is having failed to pull any wool
over the public’s eyes by
politicising and propagandising land reform; will
the government step back
and revaluate how to redeem the situation?
From Business Day (SA), 8 January
Zimbabwe meltdown worries SA's banks
Standard, Absa and Nedcor say they are keeping an eye on unfolding crisis
Financial Services Correspondent
As
alarms sound over the escalating crisis in Zimbabwe's banking sector,
three
South African banks with major shareholdings in Zimbabwean banks Absa,
Nedcor
and Standard Bank have admitted to concerns over the stability of
that
country's banking environment. With inflation rocketing past 600%,
Zimbabwe's
banking system is showing cracks after Zimbabwe Reserve Bank
governor Gideon
Gono said last month he would cease baling out troubled
banks with inadequate
liquidity. This sparked interest rate hikes and, last
week, six of Zimbabwe's
16 banks were suspended from the country's
settlement system for interbank
debt because of concern that they could not
pay the other banks. As public
jitters over bank cheques grow, at least
three major companies are now
refusing to accept cheques from any Zimbabwean
banks, according to a
Zimbabwean bank source.
Amid criticism of President Thabo Mbeki for
his policy of quiet diplomacy on
Zimbabwe's humanitarian and economic woes,
this is a clear indication that
the fallout has had a major effect on SA's
business sector. And for SA's
three banking giants with a stake in Zimbabwean
banks, the crisis is a worry
even though they say their institutions are safe
from harm. Standard Bank
owns Stanbic Bank Zimbabwe, and Greg Brackenridge,
Stanbic director for
Africa, said yesterday his bank was worried about the
stability of
Zimbabwe's banking system. "Clearly, we have an interest in a
stable
financial system in Zimbabwe so this current issue is a concern for us
on
that level. But as an individual bank, we feel we have conservative
lending
policies so we don't feel we are at risk at the moment." But
Brackenridge
said that with banking sentiment such a volatile and sensitive
matter, he
was keeping an eye open for signs that systemic risk could be
infiltrating
the banking environment.
Absa owns 26% of Commerce
Bank of Zimbabwe (CBZ) and Absa director Louis von
Zeuner said he too had
concerns. "Although we are perfectly comfortable with
CBZ at the moment, we
are certainly concerned about the banking environment.
But what is making
this worse is that rumours and speculation are adding
more risk to an already
tense situation." Von Zeuner said CBZ had not yet
experienced any interbank
loan defaults, "although we are monitoring this
situation extremely closely".
Colin Drew, GM of Nedbank Africa, which owns
28% of the Zimbabwe-based
Merchant Bank of Central Africa (MBCA), said the
country was in the grip of a
banking crisis. Drew said that although MBCA
had been exposed to most of the
other banks through interbank loans, "we
have managed our exposure carefully
and have been positioning our bank for a
crisis for some time, given what is
happening in other parts of the
Zimbabwean economy". "We don't anticipate
that this crisis will spread to
affect us, although we are monitoring the
situation closely," he said.
Drew said part of the problem was that
the Zimbabwe Reserve Bank had
introduced a real-time settlement system for
interbank loans in November
that revealed liquidity problems in frailer
banks. Whereas in the past there
was a delay in the time taken for banks to
settle interbank loans, the
real-time system exposed any liquidity
deficiencies. Standard Bank economist
Robert Bunyi said Zimbabwe's bank
crisis had been "a time bomb waiting to
explode". Until December, the
Zimbabwe Reserve Bank had kept interest rates
at about 150%, yet inflation
was running at more than 500% prompting people
to borrow relatively cheaply
to buy assets to sell at a profit. "But now
(Gono) has tightened the screws
on lending between the reserve bank and
commercial banks, the banks have
raised their interest rates on interbank
lending and this has filtered
through to an increase in the interest rates
charged to consumers on their
loans," he said. In November, the nominal
interest rate was 150%, but this
has increased to 375%- 450% at big banks,
and to 600%-700% at small
banks.
From Business Day (SA), 8 January
Zimbabwe meltdown worries SA's banks
Standard, Absa and Nedcor say they are keeping an eye on unfolding crisis
Financial Services Correspondent
As
alarms sound over the escalating crisis in Zimbabwe's banking sector,
three
South African banks with major shareholdings in Zimbabwean banks Absa,
Nedcor
and Standard Bank have admitted to concerns over the stability of
that
country's banking environment. With inflation rocketing past 600%,
Zimbabwe's
banking system is showing cracks after Zimbabwe Reserve Bank
governor Gideon
Gono said last month he would cease baling out troubled
banks with inadequate
liquidity. This sparked interest rate hikes and, last
week, six of Zimbabwe's
16 banks were suspended from the country's
settlement system for interbank
debt because of concern that they could not
pay the other banks. As public
jitters over bank cheques grow, at least
three major companies are now
refusing to accept cheques from any Zimbabwean
banks, according to a
Zimbabwean bank source.
Amid criticism of President Thabo Mbeki for
his policy of quiet diplomacy on
Zimbabwe's humanitarian and economic woes,
this is a clear indication that
the fallout has had a major effect on SA's
business sector. And for SA's
three banking giants with a stake in Zimbabwean
banks, the crisis is a worry
even though they say their institutions are safe
from harm. Standard Bank
owns Stanbic Bank Zimbabwe, and Greg Brackenridge,
Stanbic director for
Africa, said yesterday his bank was worried about the
stability of
Zimbabwe's banking system. "Clearly, we have an interest in a
stable
financial system in Zimbabwe so this current issue is a concern for us
on
that level. But as an individual bank, we feel we have conservative
lending
policies so we don't feel we are at risk at the moment." But
Brackenridge
said that with banking sentiment such a volatile and sensitive
matter, he
was keeping an eye open for signs that systemic risk could be
infiltrating
the banking environment.
Absa owns 26% of Commerce
Bank of Zimbabwe (CBZ) and Absa director Louis von
Zeuner said he too had
concerns. "Although we are perfectly comfortable with
CBZ at the moment, we
are certainly concerned about the banking environment.
But what is making
this worse is that rumours and speculation are adding
more risk to an already
tense situation." Von Zeuner said CBZ had not yet
experienced any interbank
loan defaults, "although we are monitoring this
situation extremely closely".
Colin Drew, GM of Nedbank Africa, which owns
28% of the Zimbabwe-based
Merchant Bank of Central Africa (MBCA), said the
country was in the grip of a
banking crisis. Drew said that although MBCA
had been exposed to most of the
other banks through interbank loans, "we
have managed our exposure carefully
and have been positioning our bank for a
crisis for some time, given what is
happening in other parts of the
Zimbabwean economy". "We don't anticipate
that this crisis will spread to
affect us, although we are monitoring the
situation closely," he said.
Drew said part of the problem was that
the Zimbabwe Reserve Bank had
introduced a real-time settlement system for
interbank loans in November
that revealed liquidity problems in frailer
banks. Whereas in the past there
was a delay in the time taken for banks to
settle interbank loans, the
real-time system exposed any liquidity
deficiencies. Standard Bank economist
Robert Bunyi said Zimbabwe's bank
crisis had been "a time bomb waiting to
explode". Until December, the
Zimbabwe Reserve Bank had kept interest rates
at about 150%, yet inflation
was running at more than 500% prompting people
to borrow relatively cheaply
to buy assets to sell at a profit. "But now
(Gono) has tightened the screws
on lending between the reserve bank and
commercial banks, the banks have
raised their interest rates on interbank
lending and this has filtered
through to an increase in the interest rates
charged to consumers on their
loans," he said. In November, the nominal
interest rate was 150%, but this
has increased to 375%- 450% at big banks,
and to 600%-700% at small
banks.
Mail and Guardian
SA land restitution: Fears of another
Zimbabwe
Mariette le Roux | Pretoria
08 January 2004
10:22
The restitution of land to those previously dispossessed of it
will not
result in a stoppage of agricultural production in South Africa, the
Land
Claims Commission said on Wednesday.
Fears to this effect are
being propagated by a minority "who believe that if
you give land to blacks
nothing will happen on that land", said chief land
claims commissioner Tozi
Gwanya.
The government needs strategic partners to make the process work,
and there
are many commercial farmers committed to helping build a new
generation of
agriculturists, he said.
The Transvaal Agricultural
Union (TAU) stands by its contention that
restitution claims have been lodged
for at least 70% of commercial farming
land in Limpopo and Mpumalanga -- the
two provinces with the highest
percentage of claims.
This was disputed
by Gwanya, who said about 20% of commercial agricultural
land has been
claimed nationally -- and up to 50% in the two provinces.
He also
rejected the union's claim that failed restitution projects have
cost the
country millions of rands. There have been some problems -- but
these have
been overshadowed by the successes.
He could not give figures in this
regard, but said "it is definitely not
millions".
The commission is at
pains to ensure that claimants intend putting the land
to good use, Gwanya
said. A viable land use plan is important, though not
a
prerequisite.
The government assists upcoming farmers with a
settlement planning grant and
training programmes.
"Once a claim has
been validated there has to be a careful balancing act
[between the interests
of the claimants and the future of the land]," Gwanya
said.
TAU labour
and property rights manager Jack Loggenberg described the
restitution process
as a big flop.
"The government realises this -- that is why it is
increasingly trying to
get current land owners involved [in development]," he
said.
The union is now more concerned about the effects of restitution
than ever
before, given the pending enactment of an expropriation clause of
the
Restitution of Land Rights Act.
An amendment Bill was approved by
Parliament last year, which empowers the
minister of agriculture and land
affairs to expropriate land without a court
order.
This has the
potential of ruining the country, Loggenberg said.
"Property rights are
the cornerstone of a freemarket system. If that is
taken away or damaged, the
economy of the country will go down the drain."
The TAU intends fighting
the clause with all its might, and is considering
legal action.
Agri
SA said most successful restitution claimants have trouble with farming
in
the beginning. There have been some reversals in production, but no
critical
financial losses.
"To get a process like this under way will always cost
money. It is a
learning curve. But if we don't start somewhere, we will never
know where we
are supposed to end up."
The Democratic Alliance said
restitution is important to make amends for the
forced removal of people from
their land by the apartheid government.
"But at the same time, productive
commercial farms must be maintained to
sustain the agricultural economy and
ensure that South Africa is never faced
with the food deficits experienced in
Zimbabwe."
To ensure this, the government has to maintain the trust and
cooperation of
existing farmers and harness their skills. But the new
expropriation
legislation has done exactly the opposite, it said.
The
Pan Africanist Congress said there can be no genuine liberation and
democracy
without the just resolution of the land question. It lamented the
fate of
thousands who are still landless and are evicted from land daily.
"The
land question cannot be ignored forever without making what is
happening in
Zimbabwe look like a nice afternoon picnic," the PAC warned. -
Sapa