The ZIMBABWE Situation | Our
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"We share the same objective," Mr
Bush said, asked about differences
between the US and South African positions
on the crisis. "We share the same
outcome."
President Thabo
Mbeki of South Africa said: "President Bush and myself
are absolutely of one
mind about the urgent need to address the political
and economic challenges
of Zimbabwe."
Morgan Tsvangirai, president of Zimbabwe's opposition
Movement for
Democratic Change, accused Mr Mbeki of making "false and
mischievous"
statements that his party was in talks with President Robert
Mugabe's Zanu
PF party aimed at a political settlement. "Since the aborted
talks between
the MDC and Zanu PF in April 2002, there has been absolutely no
political
engagement between the two political parties," Mr Tsvangirai said
yesterday.
The US has called for Mr Mugabe to stand down. Secretary
of State
Colin Powell, in Pretoria with the president yesterday, recently
urged South
Africa to play a stronger role in resolving the
crisis.
South Africa's government favours a negotiated settlement
towards a
transitional government that would incorporate both Zanu PF and the
MDC. MDC
officials have accused Pretoria of siding with Zanu PF.
Claims that talks are going on "are manifestly partisan, designed to
buy time
for the beleaguered illegitimate Mugabe regime and ward off
potential
brokers", Mr Tsvangirai said yesterday. But asked about South
Africa's
impartiality in the process yesterday, Mr Bush said: "I think Mr
Mbeki can be
an honest broker."
* The House of Representatives' foreign
operations appropriations
subcommittee will today decide how much money to
allocate for next year to
the millennium challenge account (MCA) - the new US
overseas aid programme -
and the Aids initiative, Alan Beattie writes from
Washington.
Demand for spending elsewhere has cut the
subcommittee's overall
allocation by $1.8bn to $17.1bn compared with the
proposed White House
budget, and some of that cut is likely to fall on the
MCA.
Data, the campaign for aid to Africa, expects the committee
to
allocate only $700m to $800m to the MCA for next financial year, well
below
the administration's request for $1.3bn and the eventual aim of $5bn a
year.
Jim Kolbe, the Arizona Republican who chairs the committee,
said that
members should be happy with the amounts the committee would
allocate to the
MCA and Aids - where Congress has already increased the White
House's $2bn
request to $3bn.
But he warned: "I don't think we
are going to be at the full amount
[the administration]
requested...".
Campaigners' irritation with the White House has not
been helped by
accusations of bad faith over exactly how much money it
promised to fight
for.
In its budget submission earlier this
year, the White House requested
$1.3bn for the MCA in 2004. NGOs were
surprised at how low the request was,
since administration fact sheets had
suggested $1.7bn.
FinGaz
Minister besieges ZBS
Hama Saburi Deputy
Editor-in-Chief
7/10/03 8:29:22 AM (GMT +2)
THE sale of
the Reserve Bank of Zimbabwe’s stake in the Zimbabwe
Building Society (ZBS),
on the cards for a year, has taken a bizarre twist
following a string of
last-minute complications and technical glitches amid
revelations that the
society’s former managing director and shareholder
Francis Nhema and the
other founding shareholders are digging in their heels
over the ownership of
the society.
News that the minister did no want to let go of the
society came as it
emerged that the RBZ made a costly error by overlooking
the transfer of the
society’s ownership into the Finance Trust of Zimbabwe’s
(FIT) name when it
moved in with a $400 million rescue package in 1998. FIT
is a subsidiary of
the RBZ.
This meant that share certificates
were still in names of the founding
shareholders even though the coming in of
the central bank was suppose to
result in the restructuring of the society’s
shareholding.
The shareholders are now taking advantage of this
technicality.
The central bank threw the bank a lifeline after it
chipped in with a
bail-out package when the building society was spiralling
towards bankruptcy
after it was left in the lurch following the collapse of
the United Merchant
Bank (UMB) owned by the late maverick self-styled black
economic empowerment
activist, Roger Boka. At the time, the Banking Act had
not been revisited
and the central bank did not have the supervisory powers
it now has and only
had to use moral-suasion to take over the
society.
ZBS was one of the several financial institutions to be
found at the
scene of what ranks as probably Zimbabwe’s worst financial
accident caused
by UMB, which issued billions of dollars worth of fake Cold
Storage Company
bills. Instead of letting it twist in the air, the central
bank had to
ring-fence the ZBS to protect the banking sector from the
contagion effect.
The problems at the building society however
brought an inglorious end
to one of the most remarkable banking careers in
the country when Nhema, the
founding chief executive officer, made an
unceremonious exit.
According to sources privy to the privatisation
of the ZBS, which is
now in the deep-freeze, the technicality only emerged in
the third quarter
of last year, in the last stages of the tendering process,
when the
Privatisation Agency of Zimbabwe (PAZ), which is overseeing the sale
of the
central bank’s 94 percent shareholding in the building society,
inquired
about the share transfer forms — which are basically the documents
that one
completes in order to effect share transfer.
It however
turned out that Nhema, who, having been shown the door from
ZBS, in 2000
switched finance for politics when he was appointed the
Minister of
Environment and Tourism and the other founding shareholders, had
not signed
the forms.
Some of the founding shareholders yesterday confirmed
that they had
not signed the share-transfer forms. The founding shareholders
include the
Nicholas Vingirai-owned Transnational, Fidelity Life, National
Insurance
Company of Zimbabwe now known as NicozDiamond, Continental Capital,
a
subsidiary of the Zimbabwe Banking Corporation, and Real Time
Computers.
The PAZ then sought legal advice before opening the four
bids that
were received from prospective investors. Its legal advisers told
the agency
to resolve the issue of ZBS’ shareholding first or plunge the
agency into a
fresh legal battle similar to the one it fought against
Ukubambana Kubatana
Investments (UKI).
UKI, a company linked to
business magnate, Mutumwa Mawere, derailed
the sale of the government’s stake
in three former Astra Holdings strategic
business units after dragging PAZ to
court last year in a failed attempt to
force it into announcing the results
of a tender.
PAZ subsequently advised the RBZ, currently on the
hunt for a new
governor to replace the outgoing Leonard Tsumba, to suspend
the exercise,
whose winner was supposed to have been announced in February
this year. This
did not only result in the privatisation clock of the
building society
grinding to a halt but also placed the developments at the
mortgage lender
firmly under public scrutiny as the move by the central bank
to temporarily
put the spin-off on ice took both the market and prospective
investors by
surprise.
PAZ director, Andrew Bvumbe, refused to
comment and instead referred
questions to the RBZ, saying the agency and KPMG
Chartered Accountants only
acted as advisors: "We acted as advisors and we
gave appropriate advice."
Acting RBZ governor, Charles Chikaura,
was not available for comment
as he was reportedly locked up in marathon
meetings with the Minister of
Finance and Economic Development Herbert
Murerwa.
Nhema’s office said he was out of the country in Benin.
But sources
said he had already requested the RBZ to give him the right to
first refusal
before disposing of the society, which has assets in excess of
$6 billion.
Peter Bailey of KPMG refused to comment, saying they
had agreed with
the RBZ that only the central bank could comment on the
issue.
"It will be remiss on my part to discuss the current status.
At this
stage, as you are aware, there are a number of issues brought to the
fore.
It will be immature for anybody to say anything at the moment when the
RBZ
is conducting investigations of a technical and legal nature," said
Zimbabwe
Reinsurance Company chief operating officer Solomon Tembo. Zimre
partly owns
both Nicoz and Fidelity Life.
The privatisation of
the ZBS, which was to be done through a closed
envelope auction, has been
particularly difficult and unusually lengthy even
by Zimbabwean standards
where the government’s divestiture programme has
been implemented piece-meal
over the years.
The RBZ, which has seemingly been walking a tight
rope over the
privatisation of ZBS, hinted to unspecified shareholder issues
as the major
sticking point holding back the conclusion of the protracted
sell-off, in
its statement announcing the suspension of the society’s
privatisation.
"The suspension will allow the RBZ time to resolve
outstanding
shareholder-related issues. In the meantime, the RBZ wishes to
assure all
depositors, investors and creditors that it is in full control of
ZBS and
will ensure that there is no disruption to its
operations.
"Depositors in particular, are requested to conduct
their business in
the normal manner, the RBZ is still committed to disposing
of its
shareholding in an orderly and transparent manner after the resolution
of
the issues referred to above," read part of the statement.
Sources said there was no guarantee that Nhema, who now has political
clout,
would let go the society and leave any of the four bidders to enjoy
the
fruits of his sweat.
The four bidders are the National Social
Security Authority, National
Investment Trust, the People’s Own Savings Bank
and the Zimbabwe Reinsurance
Company.
Whoever invests in ZBS
should demonstrate capacity to recapitalise the
society. ZBS managing
director, Ben Chikwanha this week said that investors
should, in addition to
the price tag, pump in about $1 billion required to
recapitalise the
institution. ZBS has a long drawn programme focusing on
branch expansion to
increase its depositors’ base and fresh investments in
automated teller
machines.
Chikwanha said: "Now we are looking for more business and
we are
getting new business and need an injection of working capital to
propel the
mortgage lending and growing our ordinary deposit base."
FinGaz
AU to suspend voting rights for defaulting member
states
From Cyril Zenda in Maputo
7/10/03 8:33:02 AM (GMT
+2)
THE newly launched African Union (AU), whose predecessor,
the
Organisation of African Union (OAU) was owed nearly US$40 million in
unpaid
subscriptions, will withdraw voting rights from defaulting members to
force
them to pay their arrears, a senior (AU) official said.
Anna Nemba, Mozambique’s permanent representative to the AU, said that
the
new organisation was piling pressure on the defaulting countries to
start
paying up their dues.
"All efforts are being made to ensure that
member states clear their
arrears," Nemba said.
"We are looking
at withdrawing voting rights from some of these
members and we may also
exclude them from participating in some of our
programmes."
When
the OAU folded last year its members owed it about US$40 million
in unpaid
contributions. Two members have paid about US$1 million, reducing
the
collective debt to US$39 million.
Nemba however said because the AU
would want to include all its
members at all fora, it was going to allow some
of the members to pay off
their arrears in instalments.
Those
that fail to make payment arrangements would however face
sanctions. She
could not however give names of countries that are in
default.
The AU, launched in July last year to take over from the 39 year-old
OAU,
faces the same challenges as its predecessor, especially when it comes
to
getting full support from all its 53 members.
Meanwhile, Seychelles
this week dropped a bombshell by announcing that
it was quitting the
14-member Southern African Development Community (SADC)
due to serious
financial constraints.
The tiny Indian Ocean country said it was
pulling out of SADC because
it can no longer afford to pay its annual
subscription of US$500 000.
This prompted the acting chairman of
the Commission of the African
Union, Amara Essy, to warn that unless the AU
will work toward giving member
states value for their money, many poor
countries were going to quit it.
FinGaz
RBZ to take over parastatals?
Staff
Reporter
7/10/03 8:34:10 AM (GMT +2)
THE Reserve Bank of
Zimbabwe is proposing to fund and manage the Grain
Marketing Board (GMB), the
National Oil Company of Zimbabwe (NOCZIM) and the
Zimbabwe Electricity Supply
Authority (ZESA), which are gobbling billions of
dollars in State funds every
year.
The proposals would be taken to Cabinet for discussion in the
coming
few weeks, but they are likely to meet resistance from heads of
line
ministries that run the parastatals concerned.
GMB falls
under the Lands and Agriculture Ministry, while the Energy
and Power
Development Ministry runs NOCZIM and ZESA.
A document leaked from
the RBZ suggests three strategies that could be
used by the central bank to
turnaround NOCZIM, ZESA and GMB.
Once approved, the RBZ will
produce a pricing strategy allowing the
three entities to charge
market-related prices enabling them to operate
viably.
While
this would have the effect of increasing prices, it eliminates
subsidies that
have been blamed for the burgeoning budget deficit.
NOCZIM, ZESA
and GMB’s financial needs would be met through the
issuance of bills, which
banks could hold as part of their liquid assets.
Currently, the RBZ
only accepts Treasury Bills as security.
The bills can easily be
converted into cash, discountable and accorded
prescribed asset status,
qualities that can lure other private institutions
such as pension funds and
insurance companies to participate on its take up.
"The main thrust
of these proposals is to enable the parastatals to
access relatively cheap
credit, as a bridge to viable operation," the RBZ
said.
It is
also proposed that a sinking fund would be established into
which proceeds
from the issuance of commercial paper would be managed.
Any
balances on the sinking fund will be invested on the money market,
so as to
reduce the overall cost to the parastatals.
"To ensure efficient
operation and management of the public
enterprises, it is further proposed
that an accounting firm be tasked to run
the affairs of the parastatals, as
well as managing the sinking fund.
"It is envisaged that tighter
management of parastatal operations
would eventually reduce leakages and
therefore, the funding requirements of
the enterprises," the bank
said.
Analysts said the RBZ, which time and again, is forced to
rescue ZESA,
NOCZIM and GMB with funding, was under pressure to find a
lasting solution
to problems facing them.
The more the
government delays in finding solutions to problems, the
greater the burden
suffered by the bank in sustaining the parastatals.
At the moment,
GMB requires funds to pay for the crop produced in the
previous
season.
GMB’s coffers have almost run dry because it has been,
until recently,
buying wheat and grain at prices higher than what it is
selling to millers.
Power utility, ZESA is also charging uneconomic
tariffs and can only
look forward to a change in fortunes once the
electricity commission comes
into effect before the end of this
year.
NOCZIM is also sinking deeper into debt because the fuel
price reviews
that have been awarded in the past cannot recoup costs of
sourcing the
commodity.
FinGaz
Africa splits over Mugabe
Cyril Zenda In
Maputo, Mozambique
7/10/03 8:34:53 AM (GMT +2)
SHARP
divisions between member states of the African Union (AU)
attending the
grouping’s second summit here has led to Zimbabwe being left
out of the
agenda as the organisers try to avoid anything that could further
divide the
53-member body already riven by serious disagreements.
The
exclusion of Zimbabwe from the agenda of the nine-day summit which
opened
last Friday with renewed hopes to silence guns and wipe off diseases
that are
ravaging the African continent as well as to kick-start its
economy, meant
that no one would embarrass President Robert Mugabe by asking
him uneasy
questions about his political and economic governance.
"The
programme is there for anyone to see," Manuel Lubisse, a
spokesman for
Leonardo Simao, Mozambican Foreign Affairs and Cooperation
minister, replied
curtly when asked whether there was any chance for the
crisis in Zimbabwe to
be discussed at the summit. "Zimbabwe is not going to
be discussed at this
summit."
However, delegates said the absence of Zimbabwe from the
agenda of the
Maputo summit was because the leaders were irreversibly divided
over a
number of key issues which are already putting the strength of the
newly
rehashed African body under test.
"There is more disunity
in the AU than unity, so the leaders are
making sure they don’t raise some
issues that may lead to further
divisions," said one delegate.
Sources at the conference said so strong were the divisions and
hostilities
between member states that instead of sitting in the traditional
neat
alphabetical order, starting with Angola and ending with Zimbabwe,
leaders
attending this summit would seat haphazardly as some of them could
not sit
next to each other.
Putting Zimbabwe on the agenda would have
angered many countries that
are do not see any critical situation in Zimbabwe
and this could have
divided the member states further.
Incoming
AU chairman, Joacquim Chissano, who was in America two weeks
ago, told the
Americans that there was nothing wrong with the situation in
Zimbabwe as
Mugabe was doing justice.
"Justice is being done in Zimbabwe but it
is not well received by
people who are not ready to give what they have,"
Chissano said.
Besides, according to the charter of the AU, in the
spirit of
respecting each other’s sovereignty, individual member states
cannot
interfere in the internal affairs of another and the AU is only
mandated to
intervene in a member country "in grave circumstances namely: war
crimes,
genocide and crimes against humanity."
"The problem is
that though they don’t say it openly, most African
leaders support Mugabe for
one reason or the other, although they do not
entirely agree with him," one
diplomat at the summit said.
"His authority cannot be called
illegitimate, but can be contested, so
until the courts make a ruling on the
court challenge, no one can say he is
legitimate or illegitimate," he
said.
The main point of division at the summit is over who should
occupy the
all-powerful position of chairman of the AU commission — the
effective chief
executive officer — which has been occupied by Amara Essy, an
Ivorian
diplomat, in an acting capacity since last year.
Ivory
Coast withdrew Essy’s candidature from the all important post of
chairman of
AU commission yesterday.
Essy said he was pulling out of the race
"in line with the interests
of my country and those of my
compatriots."
This effectively left Mali’s Alpha Konare alone in
the race for the
post since the other aspirant, former Sao Tome and Principe
president,
Michal Travoada, was technically disqualified from the race for
submitting
his bid after the deadline.
Essy, who had the strong
backing of the camp headed by Libya’s Muammar
Gaddafi, faced a strong
challenge from the former Mali president Konare who
himself has the backing
of outgoing AU chairman, South Africa’s President
Thabo Mbeki and the
in-coming chairman, Chissano.
The head of states opposed to the
Mbeki-backed Konare camp have
lobbied for a reconsideration of Travoada’s
bid. The decision on his bid
will be finalised today.
In what
was viewed as the first salvo by Konare’s camp, Mbeki at the
weekend said AU
was "not a rubbish heap to dump rejects" as the mudslinging
campaign and
lobbying for the unions most influential position intensified.
Voting to choose the substantive candidate for the post is expected to
take
place either today or tomorrow and the camp that wins would have
effective
control of the union.
Heads of states and governments started
meeting last night and the
meeting will continue until Saturday.
The clash between Mbeki, who this week hosted US president George
Bush, and
Gaddafi, one of Bush’s sworn enemies, does not only end on the
position of
AU’s commission, as South Africa and Libya are already wrestling
to host the
Pan-African Parliament.
SA had already started doing ground-work to
ensure that the seat of
the Pan-African Parliament is Cape Town, when Libya —
which does not even
have a parliament itself — at the weekend threw its own
bid for the
parliament be to based in Tripoli.
Mugabe, together
with Libya’s Gaddafi, Congo-Brazzaville’s Denis
Sassou-Nguesso, Gabon’s Omar
Bongo and Togo’s Gnassingbe Eyadema observers
said constituted Africa’s
premier league of despots and they would resist
any move by fellow union
members to put their style of governance under the
microscope.
There is also strong resentment to suggestions that the one-year
AU
chairmanship goes to Madagascar next year as the suggestion is viewed
by
some delegates as an attempt to atone the country which last year could
not
be allowed to participate in the union because the former president had
been
removed from power through unconstitutional means.
"That is
what makes it very difficult for anyone to discuss Zimbabwe
here because you
cannot compare Mugabe’s legitimacy with that of
Ravalomanana," the diplomat
said.
"If Madagascar would go ahead and take over the honour to
chair the
union, that would really set a very wrong precedent."
Madagascar was not allowed to participate in the AU at its inception
in July
last year as the new government of President Marc Ravalomanana was
not being
recognised by other union members.
Ravalomanana, the former mayor
of Madagascar’s capital, Antananarivo,
took power after leading his
supporters in months of mass street protests
against Ratsiraka, whom they
accused of stealing the presidential ballot of
December 2001.
The two camps are also likely to clash over where the crucial Peace
and
Security Council will be domiciled as well as various issues arising
from the
Western sponsored New Partnership for Africa’s Development (NEPAD)
which
leaders of Gaddafi’s ilk have already dismissed as an attempt by the
West to
re-colonise Africa.
At the beginning of the week, some member
states were lobbying that
NEPAD’s peer review exercise should only focus on
economic governance not
political governance and other issues such as human
rights because doing so
would be a violation of the union’s charter which
emphasises
non-interference in fellow members’ internal affairs.
FinGaz
Wholesaling companies solicit govt to import
fuel
Staff Reporter
7/10/03 8:36:09 AM (GMT
+2)
FUEL wholesaling companies have asked government for permission
to
import the scarce product at realistic prices as the three-year old
crisis
pierces through the bone of the once-vibrant Zimbabwean
economy.
The request that is being digested by government, is part
of a package
of proposals handed through the Ministry of Energy and Power
Development in
recent weeks to end the shortage of fuel that has almost
brought the country
to a standstill.
Masimba Kambarami, chairman
of the Petroleum Marketers’ Association
said they have suggested the
establishment of a broad-based consortium that
would import fuel on behalf of
the industry.
Each of the 23 members of the association would then
source fuel from
the consortium for distribution to service stations that
have dried up.
"Fuel distribution will be based on a cash-core
basis. We will know
how many litres each company needs and the cost of the
product.
"NOCZIM (the National Oil Company of Zimbabwe) could still
import
fuel, but retailers require a separate arrangement because NOCZIM
has
failed," Kambarami said.
Multinational fuel wholesaling
companies asked government to break
NOCZIM’s monopoly in fuel procurement
which was not taken up until in
November last year when President Mugabe made
a sweeping attack on the
companies at a National Consultative Forum annual
retreat.
Mugabe said Cabinet was "cracking" its head over fuel
supplies every
week yet foreign companies could use their own resources to
import petrol
and diesel.
"Twenty-two years in government, 22
years of playing this foolery.
They (companies) don’t suffer from the
headaches and stomach aches I suffer
from," Mugabe was quoted
saying.
Kambarami said negotiations were continuing with Energy and
Power
Development Minister, Amos Midzi and his secretary, Justin
Mupamhanga.
A variable price, ranging between $824 and $3001 to the
United States
dollar has been tabled before the two government
officials.
The cost of fuel, under the proposal, would be based on
two option
namely the price of sourcing foreign currency off-shore or the
cost of
sourcing it from the domestic market.
Kambarami said:
"We believe, this will actually help de-politicise the
price of fuel and the
prices will be lower than black market prices."
He said the
proposals, if adopted, could also save scores of jobs from
being lost in the
fuel wholesaling sector where service stations are now
idle because of supply
constraints.
Players would like the government to come up with
pricing, which is
full cost recovery to enable them bring in the fuel and be
able to see it at
a profit.
Analysts said another wave of price
increases could ensure leading to
higher inflation if multinationals use the
parallel market rate source fuel.
Zimbabwe has been going through a
severe fuel crisis because of the
shortage of foreign currency caused by poor
export performance and the lack
of donor support.
FinGaz
RBZ plans to inject extra $10bln into export
sector
Staff Reporter
7/10/03 8:36:45 AM (GMT
+2)
THE Reserve Bank of Zimbabwe (RBZ) is mulling plans to inject
an
additional $10 billion into the export and productive sector
facilities
introduced in January last year to shore funding to $60
billion.
The facilities would be opened up to cover other sectors
directly
linked to the export of goods and services, the central bank said in
a
confidential document in our possession. It said that demand for
revolving
export and productive sector facilities has increased
significantly, hence
the need for additional funding.
Following
the drastic decline in industrial activities, the government
came up with the
two facilities to step up production and stop further job
losses. Exporters
are accessing credit at five percent interest, while
lending rates for
companies in the productive sector were pegged at 15
percent interest.
Lending rates for other borrowers have since gone up to
around 90 percent
because of hyperinflation.
At the moment, the two facilities are
targeted at exporters and
producers in agriculture, manufacturing, mining and
tourism.
"In view of the crucial role that other productive sectors
play in the
economy, it has become necessary to broaden participation of
other sector,
directly linked to export of goods and services.
"It is therefore proposed that the revolving facility be extended
to
cross-border haulage companies, particularly for goods destined for
export
markets, as well as contractors involved in cross-border
construction
activities, which earn the country foreign currency," the RBZ
said.
The bank also noted that utilisation of the export facility
has
remained low because of the shortage of foreign currency.
More resources would be released towards the productive sector
facility,
while the quantum of funds allocated to exporters would
be
reduced.
Banks that have exhausted their limits could be
allowed to access the
pooled facility, a move that would see the abolishment
of security
requirements.
The bank said: "The concept of the
revolving fund implies that the
size of the fund has a potential of
increasing to $120 billion per annum."
Tight monitoring measures
would be put in place to ensure that the
money goes into intended
use.
Applications for funds exceeding $100 million would be
disbursed
directly to supplies against submitted invoices.
Apart
from routine monitoring by banks, the RBZ also undertakes
periodic field
visits to determine use and performance of the actual
borrowers and to check
on compliance with stipulated guidelines and
requirements.
Farmers and other recipients of the funds would be required to produce
proof
of delivery to marketing agents such as the Grain Marketing Board, the
Cotton
Company of Zimbabwe and others.
Miners can also be monitored
through the Minerals Marketing
Corporation of Zimbabwe, while monitoring in
the tourism sector would be
done through TR1 and TR2 forms.
"Monitoring in the manufacturing sector, is however, much more
difficult than
in other sectors.
"It is proposed that sectoral ministries, such as
the Ministry of
Industry and International Trade, would be tasked to come up
with specific
guidelines on monitoring production, marketing and delivery of
goods and
services.
"Prohibitive penalties will be charged on
beneficiaries who misuse
these resources," the bank said.
FinGaz
Govt orders Mudzuri out of mayoral mansion
Zhean Gwaze
7/10/03 8:37:40 AM (GMT +2)
THE government has
ordered Harare executive Mayor Engineer Elias
Mudzuri to move out of the
mayoral mansion before the end of business today
and has also withdrawn, with
immediate effect, all mayoral benefits, it was
learnt this week.
According to a letter in possession of this paper written by Local
Government
and Public Works Minister Ignatius Chombo to acting mayor Sekai
Makwavarara
on Tuesday this week, Mudzuri has also been instructed not to
visit his
workplace during his suspension.
Chombo suspended Mudzuri in April
this year on allegations of
incompetence and a five-member committee was
appointed to investigate the
mayor.
However, he was left with
the privilege of using the council vehicle
and to reside at the posh $70
million mayoral mansion.
"In essence, I am now directing the
immediate withdrawal of all
benefits that accrue to the suspended mayor,
including his official vehicle,
any bodyguards or aides attached to him, and
residence at the official
residence.
"The mayor is therefore
required to vacate the mayoral residence
within the next 48 hours and in any
case, not later than end of day on
Thursday 10th July 2003," reads the letter
by Chombo.
The Harare City Council last month resolved to pay
Mudzuri his salary
despite Chombo’s directive.
Chombo has also
filed an application in the High Court seeking an
order to enforce the
suspension of Mudzuri.
The Combined Harare Residents’ Association
failed in its High Court
bid to be joined as respondents in Chombo’s
application against the mayor
and the City of Harare.
Mudzuri
was served with the letter while in police custody after he
was arrested for
the second time in less than 24 hours on Tuesday for
entering Town House
while he is still under suspension.
Mudzuri had defied Chombo’s
order of suspension and went on official
leave until June 30 .
He is challenging his suspension by Chombo through the courts.
However, Mudzuri yesterday told The Financial Gazette that Chombo’s
letter
did not move him because it was not written to him and vowed to
continue
carrying out his mayoral duties outside his office.
Part of
Chombo’s letter orders the council’s security department to
"demonstrate
vigilance and execute their functions diligently, without fear
and favour" on
Mudzuri if he reports for work.
"I believe politics is taking its
toll because this is a fight against
an individual. Anyway, this is not my
letter because it was not written to
me. I will continue carrying out my
normal duties outside office because I
cannot go to the office because of the
heavy police presence," Mudzuri said.
Mudzuri said the contents of
the letter were unconstitutional and
Harare lawyer Farai Mutamangira of
Mudambanuki and Associates said the order
was not just, considering the fact
that Mudzuri cannot find reasonable and
alternative accommodation of
comparable standards in the given time
framework.
Chombo was
also not available for comment as he was said to be out of
his office and his
mobile phone was not reachable.
Mudzuri, the first opposition mayor
of Harare in 23 years, has crossed
paths with Chombo since his election last
year.
Mudzuri accuses Chombo of interfering with his duties as a
mayor while
Chombo believes he should follow his tail.
FinGaz
Comment
Envoys a burden
7/10/03
8:18:14 AM (GMT +2)
INTERNATIONAL support for Zimbabwe has all but
evaporated,
accelerating the sweeping downturn in an economy already
entrenched in
recession.
All we now have are razor-thin trading
volumes with most of the
countries of the world. If the truth be said, there
has been precious little
in the way of good news from the dwindling band of
optimists among the
various countries in which we have foreign
missions.
True, Western fund managers are still packing for emerging
markets but
they have given Zimbabwe — whose shine as an attractive and
compelling
investment destination has since disappeared — a wide berth. In
the eyes of
the international community, Zimbabwe is a pariah rogue state
with a serious
democratic deficit. And the badly dented international
credibility can only
mean tough times ahead for the country.
Nothing
brings closer to home the country’s isolation than the fact
that even the
so-called “friendly nations” have turned their backs against
us despite their
well-documented posturing. They have not said so but we
know better — a lot
is said by the unsaid. In any case their actions speak
louder than
words.
Surprisingly, despite all this we have envoys all over the
world,
including countries that do not even know that we exist! At this rate,
we
could end up having a representative in Mars!
Without even trying
to cast a pall over the capabilities, suitability
and effectiveness of those
privileged with representing Zimbabwe in the
various capitals of the world,
we frankly do not see the economic sense in
keeping them there. Most of these
envoys were posted when the economy was
firing on all cylinders, but now the
pendulum has already swung too far the
other way.
We are not saying
they are to blame for failing to garner support for
a country which has been
ostracised by the international community for
various reasons. Nor that they
do not inspire confidence. Even at this dark
hour they might still be trying
to feed the international community positive
news on Zimbabwe, for all we
know, but it simply does not wash. In the face
of this unprecedented
international backlash, theirs is a voice in the
wilderness.
Given
our current situation, the cash-hungry nation can hardly afford
to have as
many representatives as there are countries in the world! In the
face of
lingering concerns over Zimbabwe’s international standing, some may
argue
that this is the time we need the ambassadors most. The fact is that
we
cannot simply afford these ambassadors who continue to pressure our
public
finances with no returns to talk about. As it is, we are having
difficulties
in paying them and we risk the embarrassment of having some of
our embassies
evicted from the premises they are operating from.
With these envoys,
we are continuously pouring public funds into a
black hole. In fact as it
turns out, our investment in these missions is
worthless. The situation has
been aggravated by the fact that they earn in
hard currencies. The
accelerated depreciation of the local unit has only
given another twist to
the screws on the fiscus.
With no meaningful exports to talk about, the
fall of the local
currency against the hard currencies hurts all those with
external
obligations. The unprecedented and still continuing collapse of the
local
unit has narrowed down the already slim margin for manoeuvre for
the
Treasury.
Admittedly, it is difficult for any government to
spend only what it
raises in taxes but Zimbabwe, currently in the throes of
an economic
blizzard, should live within its own means. The government has to
rein in
profligacy.
It is with this in mind that we feel that most
our envoys should be
recalled and most of our missions abroad closed down.
Only those in
strategic countries could be retained and be tasked with
covering three or
more countries in the continents they are based. It has
been done elsewhere.
Switzerland for example has its envoy based in Harare
but covering countries
like Malawi, Zambia and Zimbabwe itself.
FinGaz
AND NOW TO THE NOTEBOOK . . .
7/10/03
8:36:32 AM (GMT +2)
Queues
When Zimbabweans were asked in
March last year to go and queue at
polling stations to vote, a good many of
them thought they were either too
busy or too important to do
that.
They expected others to do it for them as usual because
they could not
afford time to do the dirty work of spending the whole day and
night in the
queue just to put an X on a piece of paper.
They
thought they had much better things to do. CZ loves to see the
same busy and
important people now joining queues for hours on end daily for
nearly
everything that one may think of.
First it is a hopelessly long queue
to get transport to the city
centre because fuel shortages have forced them
to park those comfortable
cars.
The next is another depressing queue
at the bank where chances are
that there is no cash, and if by chance the
cash is there, then the next
queue lasts anything up to a week at a service
station queuing for fuel that
may never come.
You always hear these
people who don't want to queue shouting
obscenities at the Great Uncle while
standing in the queues, but they forget
the fact that those queues could
possibly not have been there had they been
patient enough to shout the same
obscenities at the Uncle while queuing to
vote him out.
What was the
wisdom of refusing to queue for one day and then live a
life dominated by
queues for the next six years?
We queue at Granville Cemetery to bury
our dead whom we can no longer
afford to take to our rural homes any more. We
queue for days at public
hospitals for drugs that are hardly there. We queue
to bribe Mudede's
officials to please give us death certificates for our dead
relatives.
Until we learn to join the queue to decide our own destiny,
the list
of basic things that we have to queue for will continue to grow and
who
knows, we might soon be queuing to get into Chikurubi or even queue to
die!
Succession crisis One thing seems to be certain about this
country
called Zimbabwe.
The country may run short of anything one
may think of - cash, forex,
food, medical drugs, fuel, good governance,
freedom, you name it - but the
country will never run short of
clowns!
One such clown is none other than the foul-mouthed Joseph
Msika, Great
Uncle's deputy who, notwithstanding the fact that he is much
more tired than
the present incumbent, hopes he will be the next president of
Zimbabwe. My
foot!
If Mugabe is going to be replaced by someone who
is much older than
him, then what is the purpose of his retirement? What is
it that Msika will
offer us after 2008 that he cannot give us now - apart
from shouting
obscenities from everywhere?
Instead of telling
Zimbabweans what he will do for them if he was
going to be elected the next
president, like what politicians in other parts
of the world do, Msika
instead tells us about his life and history. God
forbid, who eats
history?
Whether he was in jail for how many years, that doesn't give
him a
free entrée to Munhumutapa Building because Zimbabweans want to know
what
the future has in store for them, not who did what three or five
decades
ago. At the moment people want bread and butter.
Strange
bedfellows
Jonathan Moyo owns ZBC whole and raw. We agree? Strive
Masiyiwa owns
Econet. Correct? And who has ever tried getting news updates
from this
curious ZBC-Econet product called News on Demand?
Most of
the time CZ has tried to dial 091 166 to find out which MDC or
NCA members
have been arrested, beaten or sued and which story in the
Strive
Masiyiwa-owned Daily News has got the good Minister of State for
Information
and Publicity in the Office of the President and Cabinet angry,
he has found
only stale news.
The so-called News on Demand will not
have been updated for three or
so hours and this is despite the "fact" that
every time, when ever it
happens, ZBC will be there.
Jonathan Moyo's
ZBC and Strive Masiyiwa's Econet doing any serious
business together! Doesn't
this sound like Tony Blair and the Great Uncle
enjoying a braai
together?
Strange bedfellows. Are they not? If it were a marriage, one
word
would have aptly described it - incompatible. We wonder how long
this
none-too-useful relationship is going to last. Until then, lets wait
and
see.
Nguva Yakwana for the rich
When CZ, courtesy
of well-wisher friends, thought he had finally
managed to raise the $15 000
that was originally announced as the fee for
him and his family to join the
selfless servants of God at the Nguva Yakwana
Three gospel music concept due
this weekend, little did he suspect that the
devil was working
round-the-clock to ensure that he does not attend this
event.
The
organisers, in their Godly wisdom, decided that the entrance fee
they were
charging did not make any business sense, so they decided to
increase it.
Yes, they increased it from $5 000 per adult to $8 500 because
the profit
margin was not good enough, especially when they considered that
some of the
performers will be coming from abroad.
Let the Lord bless them and
their families for discriminating against
the poor.
cznotebook@yahoo.co.uk
FinGaz
Poll petitions must be speedily dealt with
7/10/03 8:53:39 AM (GMT +2)
The 2000 Parliamentary elections and
2002 Presidential elections
generated local and international interest and
then developed into topical
issues.
Candidates belonging to the
opposition Movement for Democratic Change
(MDC) filed 37 petitions and Zanu
PF filed at least one known election
petition.
The party
presidential candidate for the opposition MDC also filed an
election
petition. That petition has also not been heard as of June 16 2003.
This situation forms the basis for the current renewed interest in
the
subject. Genuine concerns have been legitimately raised on the delay in
the
finalisation of electoral matters arising from the two
elections.
It is about two years before the fifth anniversary of the
2000
parliamentary elections. Parliamentarians are elected for five year
periods.
At the rate election petitions are being finalised, the life of the
current
Parliament will end before the cases are finalised in the courts. In
respect
of the presidential petition, it is realistically possible to suggest
the
trend will be the same.
This saga casts a very dark shadow on
our democracy and legal system.
Elections are central to democracies. They
represent the voice of the
electorate. The courts are there for those
instances in which one is not
satisfied with the conduct of
elections.
It is one’s constitutional right to have his day in court in
respect
of elections. Judicial redress of grievances involves access to all
the
relevant courts in the legal system up to the Supreme Court.
The
critical point is that electoral disputes must be resolved
expeditiously. The
electorate is entitled to proper, valid and legitimate
representation for the
duration of the life of parliament.
If not for the entire duration of
the life of parliament, it must at
the very least, be for the the substantial
part of the life that parliament.
Where this is not done, prejudice to the
electorate is irreparable.
The voice of the electorate must be
respected and given effect. In the
last American Presidential saga, there
were many court appearances in lower
Federal courts and in the Supreme Court.
All those proceedings were
finalised between end of November and beginning of
January the following
year. The president started his term on the stipulated
date.
The rate at which elections have been handled is a matter of
immense
national concern. The issues arising from these observations are
best
addressed by discussing the law and procedure on setting down of
and
determination of election petitions in Zimbabwe. Observations on
some
reported cases are then made.
In terms of the Electoral Act,
chapter 2:01, an objection to an
election can be brought by way of a petition
to the High Court by a
candidate or any person claiming a right to have been
elected at the
election or by any registered voter. The matter is tried in
the High Court.
Election matters by their very nature, are very very
important and
must be dispossed of as a matter of urgency. Our law recognises
this trite
and fundamental point very clearly. It specifically provides that
election
petitions must be treated as matters of urgency.
From the
heading and the provisions, all election matters are matters
of urgency to be
set down as cases of urgency. If administrative channels of
communicating
with the registrar’s office do not yield results, an order of
court must be
obtained.
It must be noted that the urgency extends to the hearing of
appeals.
The point being made is that the conduct of the losing
Movement for
Democratic Change (MDC) candidates who filed petitions is
totally
ununderstandable. They have not shown confidence in their own cases.
They
disregarded the express provisions of the law.
They had no
thirst for justice. It can validly be said they were
exceptionally unfair to
the voters who, by instituting petitions, they had
been led to believe that
something was genuinely being done in good faith to
have the legitimacy of
the representation of those voters determined by a
court of competent
jurisdiction.
The MDC plaintiffs are lucky they are Zimbabwean. No one
holding or
aspiring to hold public office in Zimbabwe is ever called upon to
be
accountable.
On their part, Zimbabwean politicians maintain they
are the ones with
absolute knowledge and no one should interfere in how they
conduct issues.
The end result is the same.
They go to the South
Pole when the agreement is that they should be
leading us to the North Pole.
The tragedy is the passivity of the general
Zimbabwean populace. Anyone who
dares can take them up for a ride with
impunity.
Electoral cases
under dispute have the same governing principles in
the whole
commonwealth.
“For an election to be conducted substantially in
accordance with the
law there must be a real election by ballot and no such
substantial
departure from the procedure laid down by Parliament as to make
the ordinary
man condemn the election as a shame or a travesty of an election
by ballot.
Instances of such a substantial departure would be allowing
voters to
vote for a person who was not in fact a candidate or refusing to
accept a
qualified candidate on some illegal ground or disanfranchising a
substantial
proportion of qualified voters.”
This was said by Lord
Denning, a well known practical English Judge in
the case of Morgan and
Simpson published in the 1974 reports. Non-compliance
with the electoral Act
does not mean mechanical non-compliance with the Act.
It means
compliance with the principles associated with a political
contest in an
election held in a democratic country by ballot. All material
factors for the
holding of free and fair elections are relevant.
The basis for
challenging the election can be any or all of them. In
addition, the section
includes failure to observe the provisions of the Act
. Between them, these
provisions cater for any eventuality.
The important cases on elections
in this country which show the
approach are Pio vs Smith a 1986 decision of
the Supreme Court of Zimbabwe,
Dongo vs Mwashita a 1995 decision of the High
Court. There are other cases
governing municipal and mayoral elections. They
will not be refered to as
they have the same principles.
The only
one worth reporting is that of Makamure which noted that “a
proper
application of the provisions of section 149 of the Electoral Act
will
ordinarily require the leading of oral evidence.” Reliance on
affidavits is
not proper where there is a dispute.
The reported cases pursued to the
end of 2002 show that apart from odd
cases, the usual section 149 was
employed as the basis for overturnig
elections.
Most petitions in
the 2000 elections brought by losing MDC candidates
sought to establish
history by pursuing electoral challenges under section
124. It is difficult
if not impossible to prove a case under this section.
Most improprieties in
electoral activities are not conducted by candidates
or their
agents.
Agents are persons who act with ones knowledge and consent. The
reason
for the revolutionary approach taken by litigants is not known. It can
only
be observed that it is a very ill fated decision. It would be a
monumental
legal disaster if the presidential election is also based on that
section
alone.
It might be that this is all due to an oversight.
Oversights can
determine history. Historians are aware that the British
Empire has been
referred to as a domain created in a moment of world absent
mindedness.
The important thing is what one does after noticing an
oversight.
This brings to my mind the story of a very experienced
priest who
forgot to read the gospel during a mass celebration. It was on one
of those
days dedicated to the rememberance of a departed saint on whom he
had a lot
to say.
He went straight into his sermon and after that
proceeded with the
mass. When a senior parishioner reminded him of what had
happened he
publicly apologised, went back to read the day’s readings and
then proceeded
to complete the religious rite in a proper and regular manner.
He did what
had to be done, that is very important.
This full script
of this paper was originally prepared for a private
audience who needed an
analysis of the subject. The paper is published with
the knowledge, consent
and encouragement of the audience.
lAugustine Runesu Chizikani writes
under the auspices of The
Consultancy Centre which conducts research and
consultancy work.
consecentre @ hotmail.com
FinGaz
Hunger saps resolve for popular revolt
Marko
Phiri
7/10/03 8:54:37 AM (GMT +2)
As solutions for the end
to the Zimbabwe’s deepening woes become more
and more elusive, more pressing
questions as informed by experiences in
other countries that were bedeviled
by the same obdurate regimes are
presented to the discourse about the
country’s future.
For example, in the aftermath of the “failed” million
man march to
state house, will an uprising in the form that brought down
Ferdinand Marcos
and Joseph Estrada in the Philippines be successfully
effected in Zimbabwe
and this when the people have no energy to take to the
streets in their
millions?
Because there was no collective uproar
for example when the leader of
the opposition was thrown into the cells only
to be released a fortnight
later, could then that be a pointer that the
Robert Mugabe regime will never
be given a hard kick in the butt by the long
suffering masses here no matter
how much it bullies them around?
It
could be that the gnawing hunger, after the ruling party
seemingly
successfully turned food into a political weapon, has sapped all
the
strength for popular revolt.
As some have sung rather
tongue-in-cheek, you can’t make love on a
hungry belly, one has to therefore
imagine the more physically taxing
undertaking where street protestors are
greeted with booted feet, sjamboks
and teargas by the security forces and
sent scurrying for cover.
One would seemingly need more than just a
militant spirit, but indeed
a very full belly.
But because the food
has made its own disappearing act, it has
therefore meant that the enervating
hunger has dictated to the people how
they respond to the present
crisis.
It could be further argued however that it is that hunger
itself that
must drive the people into the streets in their millions, but the
most
pertinent question would then become, why hasn’t this happened seeing
the
hunger has stalked millions here for a long enough period for the people
to
have made their discontent felt?
Some would easily point to the
government’s huge arsenal of riot
police and the army as the major factor,
but if hunger has been known to
drive people into all kind of shenanigans
outside the
law well knowing they could end up in filthy cells, meeting
the
security forces head on, who themselves are just as scrawny looking
and
famished, would not be a worse prospect.
Another school of
thought however, would also say that, if the people
are not hungry, and
therefore supposedly well fed, they would have no reason
to ask for the
ouster of the regime that is responsible for their full
pantries and shiny
bellies.
Events here however offer any cursory systematic study for any
field
of academic interest many migraines because here every order of things
as
would obtain elsewhere has been profoundly controverted.
As
watchers of the tragedy in Zimbabwe gape without any idea how to
tackle the
greatest challenge offered to Southern Africa in recent years,
they will be
hard pressed to find answers on why what was seen in other
oppressive regimes
has taken a lethargic pace here, that is if the Robert
Mugabe-led government
will eventually come under mass protests which even
the
army, the
police and other ruling party activists would never be able
to stop.
It is interesting that despite seeing the road to doom coming, there
were no
collective efforts to duck or take the ruling party to task
especially after
the rejection of the Draft (daft) Constitution and the
onset of the bloody
farm invasions.
Looking back, it makes one ask hard questions about the
nature of
Zimbabweans, how far they will take abuse before they decide they
have had
it thus decide to act.
Obviously, hopes were pinned on the
legitimate way which for the
civilised world is an open poll, but because
this has many a time shown to
be but sheer waste of time and resources as
long as the ballot papers also
include Zanu PF, it has meant somewhat rather
eerily that an election
contest with Zanu PF is
never a foregone
conclusion that the party will lose
despite its mass
unpopularity.
As seen in the Philippines primarily, and to a smaller
extent,
Madagascar, though in the island nation you could
still find
fanatics vowing their undying allegiance to Didier
Rastiraka that unrepentant
despot.
In a sure sign that there is a painful dearth of solutions on
how to
give the ruling party one hard kick to political oblivion, the blame
game
has set in, indeed a sure sign that people have been bamboozled by
ruling
party tacticians.
It in fact began after the
opposition lost the presidency, and desperate for relief, critics have
heaped
blame on the MDC that its leadership has run out of steam, and has
no
foggiest idea about how to bail out millions of oppressed Zimbabweans
from
the misrule of Zanu PF.
In all fairness, some who have
criticised the opposition have
manifested traits that do not present them as
impeccable or convincing
strategists.
For starters, it would be
interesting to know how anybody would have
fared given an opponent like Zanu
PF, for who hitting below the belt is part
of the game and not
an
offence punishable by disqualification.
The MDC leader, has had the
unenviable task of being viewed with that
awe that presents him as an avatar,
and this perhaps is itself not misplaced
loyalty, but in the interest of fair
debate one has to consider the
political history of first this continent, and
second that of Zimbabwe
itself.
While some would see the resumption
of talks as the way forward and a
logical starting point toward the end of
the country’s woes which are
worsening by the day, would anybody engage Zanu
PF seeing it is still
obsessed about ruling for just a little bit longer, and
this against the
background of the country’s first post-independence
inter-party talks which
gave birth to an enlarged Zanu PF after PF Zapu was
swallowed?
What would be the terms that the ruling party is willing to
work under
in its constructive engagement with the opposition?
And
the opposition itself, what bargaining chip would it take to the
round table
seeing that all it has presented to the ruling party as
preconditions for
talks has been treated with disdain?
Amid all the hard questions about
the way forward, the truth will
remain that the ruling party has never
presented itself as interested in
salvaging the country from this present
crisis. For if it were
interested, it would not have sacrificed the
whole country by
sanctioning the chaos in the farms, or reneged on the
agreements made in the
1998 Land Conference.
It would not have
spurned international efforts to broker peace
between it and the opposition
MDC. But, then what would be important in the
here and now is how do you deal
with this regime before things really get
out of hand — as if they haven’t
already! Because Mugabe has not
convincingly shown he is willing to go
despite all the media excitement
generated since the interview with Supa
Mandiwanzira and also the SABC for
if he was he would have done so long ago;
and because the polls have shown
that they are not what will give Zimbabweans
a new political dispensation;
and the Nigerians and the South Africans have
left Zimbabweans to be
battered and bruised; and the Americans have been all
talk and no action;
the sole option that would be left open to Zimbabweans
would there become
the Zimbabweans themselves.
A transitional
government is put in place while preparations are made
for fresh polls, but
excuse the pessimism, can Zanu PF be trusted not to rig
that poll again?
Would the ruling party agree for some other body to
organise the
elections?
However, on Zimbabweans doing it themselves, it would be
argued on the
premise of past events informing future course, that they have
failed to
rise to that occasion.
What makes the picture different is
that the present hardships have
bordered on the extreme. Even the 1998 food
riots came at a time when
commodities were comparatively affordable.
Zimbabweans have never had it
this bad.
To start with, there is a
limit on how far the police and the army can
go in taking brutal orders from
those whose sins against their own fellow
countrymen are many.
It
was seen in the Philippines where soldiers refused take orders from
Marcos,
for example, when protestors took to the streets. Of interest about
events in
the Philippines is that the protests were led by powerful members
of the
clergy, and it would have been an international scandal for the
regime’s
soldiers to have taken orders to shoot to death members of the
Christian
ecumenical movement. The Philippines is a Catholic country, and
Catholic
prelates therefore took center stage in the march for democracy.
What
the people would need in any time of crisis is leadership outside
the
political spectrum, moral leaders who stand favourably in the
public
eye.
Martin Luther King Jr did what no politician could have
done; Cardinal
Sin in the Philippines became the model of pro-democracy
activism; Dorothy
Day in early 20th century America became an international
symbol for
suffragettes; in Vietnam, Cardinal Nguyen van Thuan valiantly —
and
defiantly- fought communists, and proposed his famous 8 beatitudes
for
politicians.
Or Nobel peace prize laurel Bishop Carlos Filipe
Ximenes Belo in East
Timor known for leading the resistance to Indonesian
rule. These are just
some of many icons who stood with the people, but who
themselves could not
be described as politicians.
Alongside the
gnawing hunger, what is needed are moral leaders who
will take over from the
pace that has been set by the opposition which
meanwhile will be in a long
wait for the political promised land simply
because its bitter rivals define
it as political opposition. Anybody else
who would lead the people would not
act because they aspire for public
office, but out of genuine concern for the
country and its people.
Of course no patriot would pine for civil
unrest, but Zanu PF has long
sown the seeds of anarchy. The people’s hunger
remains the only piece of
Zimbabwe’s puzzle that will author the ruling
party’s demise.
.. Marko Phiri is a freelance writer.
FinGaz
‘Govt should put in place stable pricing
policy’
Staff Reporter
7/10/03 8:45:46 AM (GMT
+2)
ZIMBABWEAN farmers’ organ- isations should lobby the government
to put
in place a stable and consistent pricing policy to encourage
long-term
investment in the agricultural sector, a local economist said this
week.
Zimbabwe National Chamber of Commerce economist James Jowa
told the
Financial Gazette that direct and indirect government involvement
in
agricultural marketing has led to excessive price rigidities and
distortions
with the parastatal Grain Marketing Board remaining the only sole
buyer and
seller of grain.
The producer price offered by the
parastatal have not been accepted by
most farmers and are also subject to
approval by Cabinet, making the pricing
process bureaucratic and very
inflexible.
Jowa said despite efforts by the government to revive the
sector since
1995 through policies such as ZIMPREST, Millennium Economic
Recovery
Programme (MERP) and the New Economic Revival Programme, the
viability of
the sector has worsened during the reform period from being a
breadbasket of
Africa.
The food security situation has also been
worsened by exogenous
factors such as periodic droughts and the cost of
carrying out farming
operations which has risen significantly.
Under
the MERP project, the government was supposed to reduce tariffs
and duty for
strategic inputs such as fertilisers and stockfeed but this has
not been the
case. Fertiliser prices recently went up by more than 100
percent.
“Any policy formulation, implementation and monitoring must be
transparent
and must include all stakeholders involved or affected. There is
need to
promote private trade development through appropriated incentives
such as
credit and training,” he said.
Jowa said the national beef herd is
likely to remain subdued if there
is no comprehensive national restocking
programme to revive it. The national
herd dropped from one million to 400 000
cattle due to disturbances caused
by farm invasions.
He said that
although the government had launched the winter maize
facility with a lot of
hype, the project’s total production of 10 000 tonnes
could only last two
days.
The Commercial Farmers Union said that the winter wheat hectarage
was
also likely to fall from about 50 000 to 10 000 hectares because of
the
drastic increases in the price of inputs.
Vandalism of
irrigation equipment and the decrease in the number of
wheat farmers due to
the land reform would also affect production.
“Government must aim at
intervening proactively in order to maximise
net social benefits from
smallholder agriculture and desist from the
promotion of narrow and partisan
interests,” Jowa said.
Indeginous Commercial Farmers Union president
Davidson Mugabe said
that policy review was necessary if the agricultural
sector is to remain
viable.
Mugabe said the prices of farming
implements had gone up several times
while producer prices are reviewed after
long periods.
FinGaz
Bush putting up a façade
Taungana
Ndoro
7/10/03 8:44:39 AM (GMT +2)
If US President George W
Bush hopes to resolve Zimbabwe’s crisis yet
he excluded it from his itinerary
then the American daydream of re-elections
and the restoration of democracy
in this country will remain just that.
Bush, the unofficial Planet
Earth President, is set to visit South
Africa, Botswana, Uganda, Nigeria and
Senegal and hop over Africa’s trouble
spots such as strife-ridden Liberia,
and embattled Zimbabwe.
Ironically the latter two are the countries he
was, as a matter of
policy, supposed to have visited first and then go on
holiday to the other
countries if he wished.
It’s folly for Bush to
think that he can solve Zimbabwe’s problems via
South Africa. President Thabo
Mbeki’s position on that one is very clear —
leave Zimbabweans to solve their
own problems, period!
The only logical thing for Bush to harangue about
is Mugabe’s asylum
in South Africa. Mbeki should simply be persuaded to offer
Mugabe asylum
just as Nigeria’s Olusegun Obasanjo offered Charles Taylor of
Liberia.
If Bush’s visit to Africa was really in earnest, he would have
been in
Harare today urging talks between the ruling ZANU PF and the
opposition MDC.
Zimbabwe is drowning in economic debris and all Bush
can do to help is
watch from a distance and try and push Mbeki to the
forefront of manoeuvring
an amicable settlement for the beleaguered
Zimbabweans.
The problem is that there is nothing at stake for the
Americans in
Zimbabwe. Zimbabwe is not Iraq. It does not have oil, in fact
this country
is experiencing the worst fuel crisis in living memory. There is
therefore,
not a chance in hell for Zimbabwe to tempt the Americans
insatiable taste
for oil.
We do not have weapons of mass destruction
either, but perhaps brains
for economic desolation as the ruling ZANU PF’s
trophy of hyperinflation
glitters for all to see.
Americans will be
Americans.
If their interests are not threatened, then they have no
interest in
whatever venture — not even the Zimbabwe crisis.
Questioned during an interview with SABC television filmed at the
White House
on July 4 (America’s Independence Day) about the war against
Iraq, and the
reaction this had drawn from, among others, former South
African president
Nelson Mandela, Bush said: “I did the right thing. My job
is to make sure
America is secure. And if some don’t like the tactics, that’
s the nature of
a free world where people can express their opinion.
“I admire Nelson
Mandela ... I just happen to disagree with him on his
view about how best to
secure America. But you can rest assured that if I
think America is
threatened, I will act,” he said.
There just has to be something
American about the Zimbabwe crisis for
Bush to act, short of which his calls
for a return to democracy in this
country will continue to be
routine.
He said it himself that his job is to make sure that America
is secure
and not Zimbabwe.
He said it himself that he will act if
he thinks America is threatened
and not when Zimbabwe is threatened.
The Zimbabwean crisis needs better meaning people to deal with it than
the
Bushes and Mbekis of this world.
Zimbabwe is not on Bush’s itinerary
because as far as the stubborn
American pride is concerned there is nothing
worth while for the US in this
country.
There is, however a lot to
gain from South Africa which threatens to
be the leading economy in the
continent given that all major businesses are
on a “great trek” from Zimbabwe
to the southern neighbour.
Bush can afford to stop in Botswana because
of the virgin diamond
fields in the thinly populated country. Uganda,
reported as one of the
bootlickers who were made mercenaries by the Americans
in their loot of
diamonds in the Democratic Republic of the Congo could also
not have been
excluded from the itinerary.
Senegal has the only
Africa President who dared to denounce Mugabe’s r
e-election and Nigeria has
oil. This goes to show how conveniently
systematic for the US Bush’s visit to
Africa is.
Zimbabweans, the MDC in particular, should not expect Bush
to act just
yet, unless of course American interests are threatened by say,
Mugabe’s
troops bombing the White House in the fashion of the September 11
attacks.
Or perhaps it will take a civil war for the world to realise
the
discontent Zimbabweans are going through.
Bush and his cronies
are just putting up a façade otherwise, because
no American interests are
threatened in this country, all is well in
Zimbabwe.
Remember even
during WWII, US made a late appearance only when its
interests were
threatened by the Japanese bombing of its Pearl Harbour in
1941.
The
war had begun in 1939 and until the Pearl Harbour bombing it was
largely a
European affair against a German madman called Adolf Hitler.
Zimbabweans, especially the opposition must not put so much faith in
the
likes of Bush, Mbeki or the AU.
For instance the AU did not even bother
putting Zimbabwe on the Maputo
summit agenda. Many, including the likes of
Mauritius have said Zimbabwe
should fix its own problems. This goes to show
that which ever way we turn;
our crisis is being dismissed as domestic —
hanzi ndezvemumba medu saka
tinofanira kupedzerana imomo.
The MDC
may appeal all it wants to the international community but
there still won’t
be any flicker of light at the end of the tunnel.
The ball is back in
the court of the opposition and civil society to
look for fresh ways to break
the stalemate.
If the opposition is, as it claims, still in the phase
of the “final
push” then at present its push is painfully flimsy.
How does it expect to push Mugabe to the negotiating table by pushing
Bush to
push Mbeki to push Mugabe?
There must be some direct push from the MDC,
especially now, when the
world’s attention is academically focused on
Zimbabwe.
Dedicated Zimbabweans did their part in sport and so in
politics they
should too.
As Bush continues to shamelessly put a
façade of trying to help us,
the nation anxiously gnashes its teeth for
another MDC dinner to be served?
FinGaz
Hyperinflation and the cash crisis in
Zimbabwe
Lovemore kadenge
7/10/03
8:19:22 AM (GMT +2)
HYPERINFLATION is just inflation at
an extremely high
rate. This means inflation is out of control and its level
is not precisely
predictable.
This is the quagmire
that Zimbabwe is currently in. The
source of the hyperinflationary pressures
is a long story. It is not the aim
of this paper to dwell on causes of
inflation, but the cash crisis that the
economic agents are grappling to come
to terms with.
The domestic currency crisis is at least
four months old
now. We are all left guessing how the economy has plunged
into all sorts of
crises — fuel, foreign currency, food, cash etc. Below is a
snapshot of
factors that we believe could have contributed to the cash crisis
in
Zimbabwe.
An unstable macroeconomic situation
characterised by high
levels of inflation, fiscal budget overruns, declining
real sector
activities etc. Simple monetary economics primers tell us that
economic
agents demand more money for transactionary purposes in a high
inflation
environment.
The Yugoslav and German
hyperinflationary experience bear
testimony to the havoc that skewed
fundamentals can cause for an economy.
The value of the domestic currencies
fell drastically, the social and
economic infrastructure collapsed, there was
increased dollarisation of the
domestic economies. This is essentially what
is being experienced in
Zimbabwe where most commodities e.g. fuel and real
estate are being priced
in United States dollars.
Severe
shortages of hard currency, fuel, basic food items
etc in the formal markets,
which have been attributed to poor pricing policy
implemented by the
government through its various arms e.g. the Central Bank
and other relevant
ministries. However, these commodities are only available
on the “black”
market where prices are far above the official prices that
goods are supposed
to sell on the official market. Individuals need to be
holding onto huge cash
balances or they can forgo the “product” if they
happen to come across
it.
Low interest rates on deposits. Interest rates on
accounts
have remained static over the past three years at between 5 percent
and 15
percent per annum, while the minimum lending rates have continued to
surge
and now sitting at more than 80 percent per year.
Banks, in a bid to boost their non-interest income, have
started levying
charges, ranging between 0.5 percent and 7.5 percent on
deposits and
withdrawals. For cash-strapped economic agents, this is a
disincentive to
save or transact through the banking system.
The growth in
the size of the “informal” sector, which has
resulted in a number of
transactions taking place outside the formal banking
system. Because of the
current economic turmoil, the “formal” sector is
largely becoming informal.
Individual economic agents are weary of being
inconvenienced at the time they
want to transact. The transaction costs of
going through the banking sector
are unbearable — long queues, bank charges,
extremely pathetic deposit rates,
high probability of failing to access one’
s own money, among
others.
The other factor that we believe has contributed to
the
liquidity crunch in the banking sector is the waning confidence in
the
banking sector by the banking public. For example, the banking public is
not
kept informed about the developments in the banking sector as far as
the
cash situation is concerned. Is the Z$24 billion to be injected by the
RBZ
the amount required to restore sanity on the market? What has been
the
impact of the Z$4 billion injected so far on easing the pressures on
the
demand for cash?
Surprisingly, it appears the
situation has further
deteriorated, with banks now reducing the limits on
withdrawals from the
banking halls and automated teller machines (ATMs) from
around $10 000 to $5
000, and $60 000 to $40 000 per day
respectively.
The queues outside the banking halls are
becoming longer
by the day. A number of business people are now uncomfortable
with dealing
with cheques. They are insisting on cash. Such are the telltale
signs of the
magnitude of the cash crisis in Zimbabwe.
These developments have significant implications for the
whole
economy:
lThere is likely to be a vicious cycle where
new
injections are likely to quickly disappear from the formal banking
setup.
lThe financial intermediation role is likely to
be
affected adversely. This will inevitably have an adverse impact on
the
banking sector’s source of extremely cheap source of finance —
deposits.
lThe tax base is likely to diminish which will
further
worsen the fiscal budget overrun. At a fairly general level, bank
profits
may not grow to their full this year, unless banks as innovative as
they are
known to be come up with cash substitute products. Transactions that
are
supposed to be attracting sales tax etc have also been
constrained.
In light of the causes and effects alluded to
above, we
feel the prescription to the problem is to restore macroeconomic
stability —
a famous suggestion!
However, there haven’t
been any clear suggestions on the
specific policy recommendations. We attempt
to provide a menu of policy
prescriptions from which we believe the RBZ and
the Treasury can develop
into a coherent policy to manage the current
situation.
There is need to rein in inflation. There is
therefore
need for:
lA credible monetary policy to
reverse inflationary
expectations
lClear communication
of policy intentions to the public,
and
lTo convince the
public of the authorities’ resolve to
stop inflation and restore
macroeconomic stability. The authorities should
come out in the open and tell
the general public how much money is needed to
end the
queues.
The domestic cash and foreign currency crises are
closely
related. However, we would hasten to say the parallel market for
essentially
all commodities and the skyrocketing inflation levels have been
responsible
for the cash crisis.
The recommendation is
the winning of public confidence.
Fire fighting approaches will not take us
anywhere. Let’s have a clear
programme that is well communicated to the
public!
Lovemore Kadenge is the president of the
Zimbabwe
Economics Society