http://www.theindependent.co.zw/
Friday, 29 July 2011 10:32
Dumisani
Muleya
WHILE the mid-term fiscal policy review was presented to
parliament on
Tuesday amid jokes and laughter from cabinet ministers and
backbenchers,
there was an uneasy calm and suppressed anger bubbling under
the surface
after clashes behind the scenes. There have been angry
exchanges between
President Robert Mugabe and Finance minister Tendai Biti
over the highly
contested statement.
Biti cracked jokes amid laughter
among MPs, saying “money must be eaten” —
in reference to the need for
government ministries and departments to
utilise available funds — and
several mentions of “Dotito”, a remote area in
Mashonaland Central to
illustrate a point, but the humour belied serious
battles over the fiscal
policy review between Mugabe and himself.
The fight over fiscal
policy drew in cabinet ministers from across the
political divide,
especially those in the security cluster and others whose
appeals for more
funding Biti had rejected.
Mugabe and Biti were in particular at each
other’s throats over the issue of
civil servants salary increases. They also
crossed swords over the emotive
issue of currency; that is whether Zimbabwe
should continue with the
multi-currency regime, adopt the United States
dollar or join the Rand
Monetary Union (RMU).
Biti prefers
Zimbabwe should push for regional economic integration by
joining the
Southern African Customs Union, which comprises South Africa,
Namibia,
Botswana, Lesotho and Swaziland, and hence become part of the RMU
or Common
Market Area — the rand zone — but Mugabe strongly opposes this
move.
Tensions before the fiscal policy were exacerbated by
Biti’s spurning of
Mugabe and different ministers’ demands for a
supplementary budget to cover
government ministries and departments which
were struggling with dwindling
allocations or had already exhausted their
votes under the current US$2,7
billion national budget.
Fiscal
policy – use by government of taxation and expenditure to influence
the
economy – is fiercely contested in Zimbabwe due to policy differences
mainly
between the populist Mugabe and the economically conservative
Biti.
Since becoming head of Treasury, Biti has become conservative
and frugal in
the running of the economy and this has led him to repeatedly
clash head-on
with Mugabe and others who are spendthrift.
During
the debates before this week’s review, whereas Mugabe took an
expansionary
stance on fiscal policy which involves government spending more
than its tax
revenues, Biti wanted a straitjacket or even contractionary
approach in line
with his “eat what you gather” mantra.
The major point of conflict
though between Mugabe and Biti was the issue of
civil servants’ salaries.
Mugabe has been demanding salary increases for
public servants while Biti
insisted there was no money. This led to
contradictory and inconsistent
pronouncements by government over the issue.
During the process of
crafting the fiscal policy Mugabe and Biti met several
times – including on
July 21 and 28 – to discuss the structure and thrust of
the review but their
differences invariably flared up. Last week the two
viciously clashed during
a heated debate to finalise the fiscal policy
review
statement.
Biti’s argument with Mugabe has been that further salary
increases without
adequate funding would bankrupt and ground the government
in the next few
months, even in October, because the revenue performance to
June indicated a
US$65 million shortfall. Average monthly revenue
collections are supposed to
be US$230 million. Actual collections in the
first half of the year only
exceed this target by about US$47 million at
US$277,3 million, while the
rest of the months were below
target.
The minister argued cost overruns were compounded by the
unbudgeted for
January and July salary increases. The January salary review
created a
budget overrun of US$210 million, while the July increments
resulted in an
additional shortfall of US$262 million, bringing the total
deficit in that
area to US$470 million.
Biti said the net effect
of this was that the monthly wage bill shot up to
$162 million from US$120
million, a dramatic increase for a broke
government, which effectively meant
an additional US$42 million every month.
The minister warned in total
the employment costs, including employer
contributions for medical insurance
and NSSA, would be $1,8 billion against
a budget provision of US$1,4
billion, hence an overall financing gap of at
least US$402 million. The cost
overrun crowds out budget support for
recurrent and capital expenditure
programmes to merely US$900 million.
Biti further warned that
implications of the salary increases would be worse
next year as government
would start with an obligation of US$2 billion,
leaving less than $1 billion
to cater for the rest of pressing
responsibilities.
However,
Mugabe and his Zanu PF ministers tried to counter Biti by coming up
with a
stop-gap measure in the form of diamond revenues. Treasury
resultantly
received recently US$27 million (which is part of the $167
million the
Zimbabwe Mining Development Corporation has committed to remit
to the fiscus
between July and December 2011) from diamond sales to pay
civil servants’
mid-year salary increases. But Biti said the amount was
woefully
inadequate.
In order to accommodate the unaffordable salary
increases, Biti then
suggested cutting budget allocations in certain
ministries and departments
which Mugabe found
sensitive.
Information exclusively obtained by the Zimbabwe
Independent shows Biti
proposed that the defence allocation which is US$5,4
million a month be cut
to US$2 million a month; foreign travel be cut from
US$4,9 million a month
to US US$2 million; foreign missions from US$2,2
million to US$1 million;
health from US$4,1 million to US$2 million;
Zimbabwe Republic Police from
US$3,4 million to US$2 million; special
services from US$1,5 million to
US$800 000; Zimbabwe Prison Services US$1,2
million to US$600 000; War
Veterans Administration Fund from US$1,1 million
to US$500 000; state
universities from US$800 000 to US$400 000 and other
operations: ministries
and departments from US$22,6 to US$11
million.
Mugabe was said to have been outraged by this last week on
Thursday and
threatened to take “swift and decisive” measures against the
minister. Biti
was resultantly forced to retreat with fear over the proposed
cuts,
including on the issue of the RMU.
While Biti succumbed to
pressure on the cuts and RMU, he maintained that the
salary increases would
create serious financial problems for an economy
already buffeted by many
others troubles, including an unsustainable US$7,15
billion
debt.
Apart from the debt crisis, Biti said economic recovery was
being hampered
by a hostile political environment, low revenues and limited
fiscal space,
lack of alternative financial instruments, failure to
implement agreed
policies and programmes and a grindingly slow pace of
reforms.
Biti then defiantly warned on Tuesday that Zimbabwe was heading for
difficult times because of Mugabe’s populist decisions and mounting
budgetary pressures.
“Zimbabweans must brace themselves for a
long winter of despair,” Biti told
parliament. “We have made this bed and we
must lie in it. The present budget
and budgets in the foreseeable future
will essentially be absorbed by wages,
leaving little room for much needed
recurrent and capital expenditure
programmes. More importantly, there is a
real danger of government running
completely down as early as October 2011,”
Biti told parliament.
“We are likely to run monthly cash deficits and
we shall face difficulties
in covering obligatory expenditure commitments.
It is a cardinal sin for any
government to spend what it does not have. The
elementary rule of common
sense economics is that ‘you eat what you kill’.
Or put simply, ‘you reap
what you sow’. We have sown the wind of an
unbalanced budget and we will
reap the whirlwind of economic
instability.”
Against this backdrop, the explosive policy differences
between Mugabe and
Biti are likely to persist amid repeated volatile
clashes.
http://www.theindependent.co.zw/
Friday, 29 July 2011
10:36
Faith Zaba
SENIOR Zanu PF politburo members have said their
party was not prepared for
early national elections and will only hold
primary elections after the
referendum for a new constitution, delimitation
of constituencies and voter
registration in 2012.
This represents a major
climb-down from Zanu PF’s previous stance that the
polls should be held this
year. It also comes at a time when some officials
close to President Robert
Mugabe and his party’s negotiating team have ruled
out reviewing forward
timelines for elections agreed to by the GPA
negotiators. They said it was
impossible to fast-track the elections roadmap
to hold polls this
year.
In separate interviews with the Zimbabwe Independent on
Wednesday, the
senior officials dismissed talk of primary elections later
this year saying
rules and regulations outlining the criteria for party
parliamentary
candidates would only be presented to the politburo for
approval after the
Zimbabwe Election Commission (Zec) completes the
demarcation of
constituencies.
“If you hear anyone talking of
primary elections this year, you must just
dismiss it as utter nonsense and
madness,” said one official. “We can only
hold our primary elections after
the referendum and after the delimitation
of constituencies. How can we have
primaries when we don’t even know what
kind of a parliament we will have in
the constitution and how many
constituencies we will have? This can only
come after voter registration and
the referendum.”
On election timelines,
another official said there would be no review of
election roadmap timelines
because they were agreed after consultations with
Zec and Mugabe’s
approval.
“Do you seriously think (Patrick) Chinamasa and (Nicholas)
Goche can agree
and append their signatures to something without the
approval of the
president?” the official said. “Mugabe knew and agreed to
the timelines and
the team also consulted Zec on how much time they needed
to do the voter
registration, compilation of the voters’ roll and
delimitation of
constituencies. Those times cannot be reviewed downward, but
obviously
things that can be done concurrently would be
done.”
The official said Zanu PF’s insistence on holding elections
this year was
just a way of putting pressure on Finance minister Tendai Biti
to avail
funds for the speedy completion of the constitution-making
process.
“We say that to put pressure on MDC-T and Biti so that funds are
made
available for the constitution-making process, Biti is releasing the
money
in dribs and drabs meaning he will determine how long the
constitution-making process will take,” said the official.
It has
also emerged that Zanu PF is deeply divided over the rules and
regulations
for its primary elections with one group insisting that only
people in the
provincial executive and those who have held party positions
for at least
five years from cell to provincial levels should contest the
elections.
The other group led by director of the national
commissariat retired Air
Vice Marshal Henry Muchena wants the rules relaxed
to allow popular people
even at grassroots level to fight it out with
provincial executives to avoid
what happened in 2008 when party supporters
boycotted elections in protest
at candidate imposition.
It is
also alleged that there is a plot by some politburo members to get rid
of
Muchena and former CIO director: internal Sydney Nyanhongo from the
national
commissariat department. The two stand accused of telling party
supporters
at meetings that the most popular candidates, irrespective of
their
positions in the party, would be allowed to contest on the party’s
ticket.
Muchena and Nyanhongo’s objective is to ensure a Zanu PF
victory and avoid a
repeat of the 2008 polls when some constituencies failed
to agree on a
single candidate.
“There is a big fight over the
criteria to choose candidates to contest
elections. A certain group of
politburo members are lobbying for Muchena and
Nyanhongo to be fired from
the commissariat because of what they are telling
people countrywide. The
two believe that Zanu PF can win if it allows the
most popular people to
contest the elections and they are arguing that
candidates should be chosen
on the basis of their popularity and not on what
provincial or national
position they hold,” said one politburo member.
However, another top
official dismissed the call to relax the rules and
regulations saying the
limit would remain at five years and one should be in
the provincial
structures.
The official, however, said there would be a waiver for
diplomats and
retiring top government officials.
http://www.theindependent.co.zw/
Friday, 29 July 2011 12:55
Reginald
Sherekete
DIAMOND revenues cannot sustain the wage bill to year
end given the current
high employment costs which are overrunning the
budget, Finance minister
Tendai Biti said in the midterm budget
statement.
“The July 2011 salary review will create an additional US$262
million budget
overrun and compares to only US$167 million expected from
diamond proceeds,”
said Biti.
Employment costs had initially been
budgeted to constitute 52% of the total
2011 national budget but the wage
reviews in January and the latest in July
will have employment costs
consuming a 65% chunk of the projected budget
outturn to full
year.
The recent July salary review has been financed from diamond
proceeds from
the Zimbabwe Mining Development Corporation (ZMDC), which has
since
committed itself to providing diamond proceeds of up to US$167 million
to
finance employment costs.
The figure still falls short of
projected employment costs of US$262 million
due to salary
increases.
“Our concern for the plight of workers must be balanced by
the fact that the
same budget has to look after 13 million of our people and
employment costs
cannot disproportionately consume the entire budget,” said
Biti.
Between January to June 2011, Zimbabwe exported 716 958,50
carats from its
alluvial diamond mines in Marange.
Only US$103,9
million of diamond exports have been accounted for, compared
to US$24,8
million in the same period last year.
A total of 2,33 million carats
have been produced to June 2011 but only 30%
(being diamonds from Marange)
have been sold.
This has given rise to questions on whether the ZMDC
can fully honour their
commitment of providing US$167 million to
treasury.
Despite huge production at Marange this year, no payment
has been received
by treasury for income earned between 1 January and 30
June 2011 as the
revenue allocation structure continues to prejudice the
state.
Under the current ownership and taxation structure, the net
proceeds to the
government is only 56%, which falls way short of Zimbabwe’s
peers Botswana,
where government receives up to 80%. The Zimbabwe Revenue
Authority’s role
in the mining and the selling of diamonds has been
questioned.
But in the proposed Diamond Revenue Bill, government
should receive at least
75% of gross sales and the role of Zimra would be
clearly defined so that
relevant authorities should stick to their defined
mandates.
“It is imperative and urgent that the proposed Diamond
Revenue Bill be
concluded and this will address the proper legal framework
dealing with the
audit of all diamond revenue, its sharing and distribution,
as well as the
role of Zimra at both production and marketing levels,” an
analyst said.
“The commitment undertaken by ZMDC should be fulfilled
so that the proposal
to finance civil servants’ salaries from diamond
proceeds does not become a
ministry of finance problem since they are now
playing their role the
ministry.”
Given the outstanding issues
with the Kimberly Process Certification
Framework, where Zimbabwe still
remains in an indeterminate state, the full
production target of 8,2 million
carats may not be fully exported and
realised to benefit the
country.
Analysts say civil servants’ hopes should not be too
high.
Biti has to come up with other sources of revenue since civil
servants will
not be able to revert to old salaries. The pressure will be
piled on by year
end, as civil servants will expect bonuses.
http://www.theindependent.co.zw/
Friday, 29 July 2011
12:53
LAWYERS representing Econet Wireless say they will appeal to the
Supreme
Court following a ruling by the High Court that said an earlier
termination
of the agreement by Trustco Mobile was not a proper termination,
but an
“expression of intention to terminate at a future date,” and
therefore was
still valid.
In a statement, the lawyers said Econet had
argued that Trustco’s letter was
not merely an expression of an intention to
terminate the agreement.
The letter specifically stated that unless
Trustco were paid the disputed
amounts, they had suspended their obligations
under the agreement and were
going to shut down their system on June 6, the
same date Econet
disconnected the system to avoid inconveniencing its
customers.
Thus, Econet had argued that Trustco had repudiated the
agreement.
Independent telecoms experts said Econet is a licensed
custodian of
confidential customer information.
Whatever happens
to that customer data, Econet shall be held to account by
the regulators and
by its subscribers, experts said.
Commentators referred to the
protests raised by subscribers against the
unsolicited messages Trustco had
been sending to customers and commended
Econet for taking customer
complaints seriously.
Asked for comment, Econet chairman Tawanda
Nyambirai, said he was out of the
country and would only comment after
talking to Econet’s lawyers. –– Staff
Writer.
http://www.theindependent.co.zw/
Friday, 29 July 2011 12:45
Paul
Nyakazeya
THE manufacturing sector will contribute 30% to the
Gross Domestic Product
(GDP) by 2015 from 12% presently, driven by growth in
agriculture, mining,
tourism and the financial service sector, Industry and
Commerce Minister
Welshman Ncube said.
Ncube also said the manufacturing
sector’s contribution to exports will be
50% during the same period, up from
26%. Zimbabwe’s GDP is US$8,3 billion.
Officially opening the Confederation
of Zimbabwe Industries’ (CZI) annual
general meeting, Ncube said
government’s objective as a nation is to improve
the manufacturing sector’s
contribution to GDP, from the current 12% to 30%
and its contribution to
exports from 26% to 50% by 2015.
“The share of the manufacturing
sector in national output (current prices),
which initially improved from an
average of 20,6% between 1986 and 1990, to
21,1% between 1991 and 96,
declined to an all time low of below 10% through
2007 and 2008, reflecting
the de-industrialisation of the economy,” Ncube
said.
Zimbabwe’s
manufacturers are grappling with a surge in counterfeit consumer
products on
the retail market, ranging from food items to farming inputs. He
said this
can be achieved in collaboration with key sectors like
agriculture,
manufacturing, mining, tourism and finance, infrastructure
development and
small and medium enterprises (SMEs).
“The key objectives across these
sectors should be to improve access to
international markets by focusing
initially on regional markets, both Sadc
and Comesa,” Ncube
underscored.
He said there was need to have access to capital by
aligning the financial
sector to the needs of the productive sector,
adoption of new technologies
including ICT, development of knowledge- based
industries and promoting
activities that can be undertaken by SMEs, taking
advantage of their low
overheads.
On import substitution, Ncube
said the situation in Zimbabwe demands that it
rely on this to offer nominal
protection for the country’s industry to
counter the surge in the disruptive
imports of cheap and “dumped” goods
which can easily be produced
locally.
“Value addition remains critical and our nation should
graduate from being a
producer of raw materials into enhanced value addition
for both the domestic
and export market,” Ncube said.
http://www.theindependent.co.zw/
Friday, 29 July 2011
10:55
Paidamoyo Muzulu
ZIMBABWE’s fiscus was bled of
nearly US$500 million by mining syndicates
involved in under-invoicing,
smuggling and general lack of quality policing
by state agents in the gold
and mineral sections of the police,
investigations by the Zimbabwe
Independent revealed.
The Mines register is in a shambles. Many small and
medium-sized miners
remain unregistered and therefore operate outside the
law. Their production
figures are not captured in the national statistics
and more often than not
they trade their minerals
clandestinely.
The country has an abundance of minerals, among them
gold, chrome, asbestos,
platinum, coal, emeralds and diamonds. However,
mining’s contribution to the
national fiscus remains negligible due to
leakages in the system.
Mining is dominated by foreign-listed
companies such as Rio Tinto,
Anglo-American, Implats, Mettalon Gold,
Zimasco, ZimAlloys and Mwana Africa.
Some other big names like Lonrho and
BHP have since divested from Zimbabwe
for a variety of reasons among them
political and unfriendly foreign
currency repatriation
policies.
Mines and Mining Development ministry secretary Thankful
Musukutwa told
parliament that most Chinese small-scale miners extracting
chrome in the
Great Dyke were not registered with the ministry due to
loopholes in the
country’s laws, which allow claim holders to keep their
claims even though
no production will be taking place so long as they paid
their annual licence
fees.
Centre for Research and Development
director Farai Maguwu said: “For the
country only to collect US$20,7 million
as royalties between January and
September 2010 in an industry that
generated US$593,8million reflects that
minerals are not contributing their
fair share to the fiscus. Some of the
extractive industries are not paying
taxes.”
Maguwu added that: “The practice of smuggling and
under-invoicing was
rampant in the country. These companies have the
blessings of senior
politicians. They pay rent to senior politicians and
nothing to the fiscus.
The $593,8million declared shows how porous the
minerals sector is at the
moment.”
Reserve Bank of Zimbabwe
governor Gideon Gono is on record complaining about
precious minerals
smuggling in the country and the involvement of political
elites.
Last week Gono told parliament that the government was
reluctant to
implement the recommendations of a report produced by Alex
Stewart
International that cited rampant smuggling of minerals by organised
syndicates in the country.
Alex Stewart International is a global
company specialising in weight
control and quality analysis in precious
metals, metals, minerals and
scraps. The company is also involved in the
logistical monitoring of the
metal and mineral products, since its origin
until its destiny.
RBZ had hired the reputable consultants to verify
the mining export receipts
the country was getting and if there were no
underhand hand dealings in
precious minerals.
“They produced a
report that said the country was prejudiced substantial
amounts of money by
mines, between US$300 million and US$400 million,” Gono
said. “There seems
to be no political will within the government to pursue
the findings. This
is a disservice to the country to do audits if you don’t
want to carry out
their recommendations.”
Cases of minerals smuggling came to the fore
in the last decade after
discovery of diamonds in Chiadzwa, near Mutare. The
development increased
the number of international syndicates that buy
minerals on the informal
market. Conversely it emboldened small-scale miners
to increase their
activities as they now had a ready market paying in
foreign currency.
The international syndicates involve Chinese,
Pakistanis, Israelis, Indians
and Russians. These nationals have been seen
around the mining towns in
Mutare and Mashonaland provinces which have huge
alluvial gold deposits.
Police in the past have nabbed foreigners on
charges of smuggling minerals
in Mutare and Bulawayo.
During the
infamous crackdown on illegal gold panners and others in 2006/7 a
total of
225 people were convicted. They were sentenced to between two and
five years
in prison. Among the convicts were five Russians who were
ultimately
deported.
The five Russians were Volynkin Vladimir, Safonor
Alexander, Vorob Vev,
Valerity Kharitonov and Shokolov Ivor.
The
operation forced the closure of over 25 000 small-scale mining
operations
according to the Zimbabwe Miners Federation.
The operation was
brought to an abrupt halt when senior politicians and
government officials
were fingered in the illicit deals.
A senior government figure was
named in a case involving Mark Mathew Burden
of Kwekwe who faced 48 counts
of illegally dealing in gold. Burden was
convicted and
fined.
Several ministers and retired army generals names’ cropped up
in mineral
dealings in both Zimbabwe and the Democratic Republic of Congo
(DRC), where
the national army once served in Operation
Sovereignty.
The late Zanu PF commissar Elliot Manyika was also
fingered in cases
involving illegal gold mining in and around
Bindura.
The late former principal director in government William
Nhara died before
the courts completed his trial in dealing in diamonds in
2007. Nhara was
linked to a Pakistani syndicate.
Zimbabwe’s
official gold production has declined from a record 26 tonnes in
the 1990s
to a paltry 13 tonnes by 2007 according to the RBZ.
The country has
since the beginning of the year banned the export of raw
chrome. It has also
introduced the controversial indigenisation policy that
seeks to give 51%
equity to local people. The regulation has since been
ruled unconstitutional
by a Parliamentary Legal Committee.
Finance minister Tendai Biti is
on record as calling for the overhaul of
mining laws so that there would be
greater transparency in the operations of
the industry. The industry
currently is regulated by a number of Acts and
there is greater need for a
consolidated legislation. — This investigation
was assisted by the Centre
for Public Accountabilty.
http://www.theindependent.co.zw/
Friday, 29 July 2011 10:53
ECONOMIC
experts on Tuesday warned that political troubles are dealing some
of the
biggest blows to Zimbabwe’s economy this year, the same day Finance
minister
Tendai Biti announced his mid-term budget review.
In his statement to
parliament, Biti said that he was going to have to make
serious cuts to
certain government spending, including procurement of
vehicles and overseas
travel. President Robert Mugabe and government
ministers have since the
beginning of the year reportedly blown about US$30
million on foreign trips
alone.
Biti also stated that the government should fast-track the
privatisation of
the country’s ailing parastatals, which are undermining the
government.
Analysts point out that the main problem facing the
Ministry of Finance is
lack of money, running into millions of dollars.
Government, which had a
revenue target of US$2,7 billion in the 2011 budget,
has already admitted it
will not hit this figure, with the International
Monetary Fund pegging the
shortfall at between US$350 million to US$450
million.
Faced with pressure to promote economic growth and also
restore investor
confidence, the Finance ministry is being hindered by
crippling policies
championed by Mugabe’s Zanu PF party.
A more
recent challenge has been the civil servants pay rise, which
observers said
Zanu PF forced through to score political points against the
MDC-T and Biti.
On several occasions Biti explained that the country could
not afford the
pay hike at this stage. Despite reports that it will be
funded by money from
diamond sales, analysts now say that because it had
been forced through, it
will bleed the Treasury purse. The pay increase
reportedly forced government
to fork out US$40 million, which was not
budgeted for.
“The
downside is political,” explains economic expert Tony Hawkins. “It’s a
big
political issue as you know because the Zanu PF element (in the
inclusive
government) spearheaded by the president himself, actively pushed
hard for a
wage increase and Biti, as the MDC Finance minister, is saying
look, we
haven’t got the money.”
Another economic analyst Masimba Kuchera said
the sudden wage increase
pay-out will have a knock-on effect, as the
government would have hoped to
put more money into capital expenditure such
as on roads, schools and
airports, but now this has been
compromised.
Hawkins also raised the issue that the wage bill from
the Ministry of Youth
and Indigenisation is allegedly contributing to the
general wage
overspending problem. These allegations come amid allegations
that the Youth
ministry’s wage bill was funding Zanu PF’s youth
militia.
Analysts also say that the controversial indigenisation and
empowerment
policy is now hitting black businesses that Zanu PF claimed it
would boost.
The law forces foreign-owned companies to cede more than half
of their
company shareholding to locals, and is widely blamed for deterring
foreign
investors from putting their capital in Zimbabwe. This has been
described as
a huge blow for local business who are baying for foreign
help.
Biti is under pressure to provide assistance to this sector,
which has seen
numerous companies shut down despite talk of economic
recovery. The Zimbabwe
National Chamber of Commerce recently stressed that
businesses needed
capital to overhaul antiquated machinery and revamp
structures, but this was
impossible without foreign investment. And this
month, the Confederation of
Zimbabwe Industries threatened to resort to
public demonstrations if
government failed to heed its calls to address
issues affecting the
viability of local companies.
In his fiscal
policy review, Biti said the economy was on course to 9,3%
growth in 2011
due to a recovery in the key mining and agriculture sectors,
but was adamant
that salary increases for state workers will be a drain on
the public
purse.
The economy grew by 8,1% in 2010, after a sharp contraction
for most of the
last decade, which critics blamed on economic mismanagement
by Mugabe.
Biti, like the economic analysts, said political problems would
stop the
country from registering the double-digit growth needed for a full
recovery.
“We are still on course to achieve our GDP growth rate of
9,3%. Agriculture
and mining, with 19,3% and 44% growth respectively, are at
the epicentre of
this growth,” Biti said.
The country should
achieve a year-end inflation rate of 4,0%, lower than the
initial forecast
of 4,5%. Annual inflation rose to 2,9% in June from 2,5% in
May.
Annual
inflation reached 500 billion percent at the peak of Zimbabwe’s
economic
crisis in December 2008, according to the International Monetary
Fund’s
figures. The resource-rich country has experienced single-digit
inflation
since the formation of the inclusive government in 2009.
Also helping
to keep inflation in check was higher maize output, which Biti
said would
rise to 1,45 million tonnes in the 2010/11 season from 1,32
million tonnes
in 2009/10.
Biti, however, warned that the country could run up a
US$700-million budget
deficit after wage increases for state employees this
month as well as
planned grain imports, state welfare programmes and
preparations for a
national census in 2012.
He said state wages
would now take up 65% of budget revenues.
“The net effect of these
(salary) increases is that we have basically become
a salaries government.
In 2012 we are going to start with a wage bill of
US$2 billion; we must
brace for a long winter of discontent,” Biti said.
The minister said
the country would increase revenues from alluvial diamond
sales, freeze
recruitment in government departments, weed out 75 000
suspected ghost
workers on the state’s payroll, and reform public
enterprises relying on
state funding. — SW Radio/ Staff Writer.
http://www.theindependent.co.zw/
Friday, 29 July 2011 10:52
Faith
Zaba
THE Zimbabwe Election Support Network (Zesn) has said the
voters’ roll
should be the sole responsibility of the Zimbabwe Election
Commission (Zec)
and not a shared job with the Registrar-General’s Office,
which in the past
has been responsible for the country’s flawed electoral
register.
According to its preliminary statement on Zimbabwe’s Electoral
Amendment
Bill 2011, Zesn said while the amendment addressed a number of
issues which
it believes were essential for levelling the playing field for
credible free
and fair elections, the proposed changes did not go far enough
in addressing
the creation of a peaceful electoral
environment.
“Zesn is, however, concerned with the continuation of
the shared
responsibility for the registration of voters, creation and
maintenance of
the voters’ roll between the Zimbabwe Electoral Commission
and the
Registrar-General’s office,” read the statement.
“Zesn
believes that this arrangement decreases accountability and can
potentially
cause inefficiency. Zesn proposes that these responsibilities
must be fully
given to Zec which has the sole mandate to run elections in
the
country.”
The amendment provides for the availability of a voters’
roll in both
printed and electronic versions in searchable, analysable and
tamper-proof
format.
Zesn added that: “The Bill re-enacts provisions of
the Zec Act and provides
for ancillary powers. The major test, however,
remains on the independence
of the commission so that it can execute its
mandate with efficiency.”
It said making provisions for the creation
of permanent poling stations and
polling-based voters’ rolls, was not enough
without dealing with politically
motivated violence.
“On the face
of it, this reform is in line with international best practice
as it reduces
risks of double-voting and promotes transparency and
credibility of the
electoral system,” it said. “However, the environment
within which elections
have been held can scuttle the best laid technical
aspirations.”
“Without a permanent solution to electoral and
politically motivated
violence, the polling station-based roll will leave
communities more
vulnerable to retribution and post-election violence since
it will be easier
upon counting to identify voting patterns down to specific
polling-stations.”
While the Bill placed the responsibility on
political parties and contesting
candidates to ensure that politically
motivated violence and intimidation
are prevented, Zesn said there was need
for vigilance to guard against
selective application of the
law.
The amendment Bill proposes the establishment of an observers
accreditation
committee, which would be set up by Zec. The committee will be
responsible
for vetting the applications and making recommendations to the
commission.
However, Zesn said the committee appeared to have a heavy
political
influence in that four of the seven members are ministerial
appointees.
http://www.theindependent.co.zw/
Friday, 29 July 2011 10:49
Paidamoyo
Muzulu
THE Agricultural and Rural Development Authority (Arda)
has lost hope of
recouping any money from institutions and politicians who
benefited from the
10-million euros tractors bought for agricultural
mechanisation in early
2000.
According to Arda chairman Basil Nyabadza,
428 tractors were bought from
Iranian manufacturer Itmoc for the first phase
of government’s farm
mechanisation programme at the height of farm
invasions.
Nyabadza told the Zimbabwe Independent on Tuesday that the
process to
recover money from tractor beneficiaries was time-consuming and
would cost
the authority a fortune.
He revealed that the scheme’s
beneficiaries had not paid a cent to Arda
despite numerous letters of
demand.
Nyabadza disclosed that the tractor scheme was seriously
abused and
beneficiaries were refusing to pay for the equipment because they
believed
they were entitled to freely benefit from the land reform
programme.
“It’s costly to engage lawyers to ask the farmers and
beneficiaries to pay,”
he said. “We are, however, hopeful that the
beneficiaries will behave
honourably and settle what they owe the authority.
The assets were grossly
abused. Beneficiaries saw Arda equipment as their
right and abused it
thereby greatly undermining the authority’s effort to
remain capitalised,”
said Nyabadza.
Arda’s position mirrors that
of the Reserve Bank of Zimbabwe which is also
failing to recover US$198
million from farmers who benefited under phase two
of the government’s farm
mechanisation programme.
Under this scheme, the RBZ distributed 2 134
tractors, 879 ploughs, 840
harrows, 342 planters, 282 vicons, 69 combine
harvesters and 19 hay balers
to A2 farm beneficiaries.
RBZ
governor Gideon Gono told parliament last week that there was no
political
will to recover debts from beneficiaries.
The full list of
beneficiaries has not been disclosed but it is believed
that the majority
are ministers, senior civil servants and senior Zanu PF
members.
The farm mechanisation debts are very significant in the
national debt
presently pegged at over US$8 billion. Zimbabwe has been cut
off from most
offshore lines of credit for failing to service its debts.
http://www.theindependent.co.zw/
Friday, 29 July 2011
10:47
Paul Nyakazeya
THE Confederation of Zimbabwe
Industries (CZI) said elections should not be
held this year as politicians
were only engaged in mortal combat for
political supremacy at the expense of
economic growth, industry and
ultimately at a great disservice to the
younger generation.
In his opening remarks at the CZI congress on Wednesday
in Victoria Falls,
CZI president Joseph Kanyekanye said Zimbabwe has become
a nation of
elections, restructuring of political parties, congresses and
elections and
outstanding issues.
He said elections dissipated
economic recovery efforts and created
deep-seated anti-business policies and
actions.
“An alien visiting earth with a gig of brain would probably
say ‘you guys
have one outstanding issue; economic prosperity,’” Kanyekanye
said.
Zanu PF has maintained that elections be held this year while
the Movement
for Democratic Change feels conditions are not conducive for a
free and fair
election adding a new constitution should be drafted
first.
MDC leader Welshman Ncube, who is also Industry and Commerce
minister, this
week said President Robert Mugabe would not press ahead with
elections this
year because he was not ready to face the consequences of
such a move.
Ncube said if Mugabe followed through with such demands,
he would find
himself in a similar situation he was in after the June 2008
presidential
run-off poll when he humbled himself and negotiated a
power-sharing deal
with his political rival –– Prime Minister Morgan
Tsvangirai.
Ncube said Russia, Malaysia, Brazil, China and India had
made a dent on
poverty by growing at least 7%.
Kanyekanye said
there was no poverty in Malaysia with its unemployment rate
being
0,0036%.
He said CZI was frustrated and angry at the slow pace
government was taking
to implement policies that speed up economic
performance.
“I am frustrated, angry and unhappy that after CZI’s
effort in activating
Botswana’s lines of credit, the Bippa has not been
domesticated into law in
the Zimbabwean parliament yet our leaders had time
to entertain one
honourable member who was suggesting injecting men so that
they can only
have sex once a month when there are more important issues,”
he said.
He said government was poor at implementing
projects.
The work of government has three speeds; speed, very slow
and stop. “We went
against the Medium Term Plan in the first two weeks of
its launch by
awarding unsustainable civil service wages,” he
said.
Kanyekanye said the alternative road map for industry going
forward was
ensuring that there are 18 hours per plant at all costs, remove
all labour
cases and agree on new realistic minimums.
He said
government must come up with labour laws that are
pro-business.
“Government should impose duties on all products from
where local capacity
exists such as in fridges, TV, beer, vehicles, shoes
and leather industry
and some selected food stuffs,” he said.
CZI
said other factors that continue to impact negatively on industry
include
uncertainty on the political front, in particular elections and
government
policy such as indigenisation.
“Another factor that is weighing on
the recovery of industry is the absence
of skilled labour, the skills flight
that took place during the economic
downturn is still weighing heavily on
industry,” Kanyekanye said.
Kanyekanye said the issue of electricity
had remained critical to industry
as power outages had resulted in a lot of
down time and have also affected
the operations of plant and equipment at a
time industry was trying to boost
production.
http://www.theindependent.co.zw/
Friday, 29 July 2011 10:45
Faith
Zaba
MDC leader Professor Welshman Ncube (pictured below) has
said a draft
constitution would only be ready for a referendum towards the
end of 2012,
and not this year as outlined in timelines submitted to South
African
President Jacob Zuma’s facilitation team by the Constitution
Parliamentary
Select Committee (Copac).
Ncube told journalists at the
Quill Club this week that Copac timelines
submitted to Zuma’s team last week
were unrealistic and nonsensical.
Copac co-chairperson Douglas
Mwonzora informed the facilitation team last
week that a draft constitution
should be ready for a referendum in December
while his counterpart
Munyaradzi Paul Mangwana told a Confederation of
Zimbabwe Industries annual
general meeting in Victoria Falls yesterday that
the referendum could be
held by January 15 next year.
Ncube said his projections were based
on realistic timeframes for the
different stages that still need to be
completed before the country can go
for a constitutional
referendum.
“Right now you are being told some nonsense that you
could have a complete
draft of the constitution during the course of this
year,” said Ncube. “It’s
nonsense! Mark my words, you will have no draft
before the end of this
year.”
He said Copac had so far only done
a summation of views collected at ward
level. Compilation of district
reports would take about three weeks, which
meant that provincial reports
could only be completed by the end of
September.
“Let’s say they
regroup after the Heroes’ Holidays (August 8/9); it will
take them another
three weeks to do the districts and regrouping to do the
provincials will
take them up to end of September. If you are lucky, you
might have some
provincial reports by the end of September,” he said.
Ncube recently
came under attack from his partners in the coalition
government for saying
the new constitution would be a negotiated document,
but he defended his
comments saying there was nothing controversial about
his
statements.
He said negotiations among the MDC-T, MDC and Zanu PF
would start when the
teams start compiling the national report, owing to
the different views
which came from the provinces.
“Just to find
a reconciliation of this (the different views) from the three
political
parties in Copac will not take less than four months,” Ncube said.
“First,
you will agree with me that even if you put a group of lawyers, it
will take
equally long. After that, you then say you have a draft. If you
have it by
March 1 or even June next year, you will be very lucky.”
The draft
would then be taken to an all-stakeholders’ meeting, which Ncube
predicted
might be as chaotic as the one held in July 2009.
According to the
GPA, comments from the stakeholders’ meeting should be
incorporated in the
draft and gazetted, and four months’ notice given before
it can be tested in
a referendum.
Ncube said if the referendum was affirmative, the draft
would then be
published in a gazette. According to the current constitution,
the country
would have to wait for one month before it is taken to
parliament for
debate.
The GPA stipulates that parliament needs a
month to debate the draft before
it can be sent to the president to be
signed into law.
“By the time he (the president) gazettes it, you are
somewhere towards the
tail end of next year and then you have to go back to
the transitional
mechanisms because you must do these things in the
transitional mechanism
before you can go to an election,” said
Ncube.
He believed the new constitution would be negotiated because
people were
simply parroting the views of the three political parties in the
inclusive
government.
“The people did not speak with one voice
and you are not just going to take
this and fill it in like multiple
choice. People gave you different answers
on different things, so the
template can’t just be completed by going to
the data. It means that
someone must then sit down and ask which opinion is
valid and how do you
arrive at that other than to negotiate it?” Ncube
asked.
He also
blamed the methodology used to get views from the people during
outreach
meetings, saying Copac should have either taken the Kariba draft
constitution, which was agreed to by the three political parties’
negotiating teams, or any other draft to the people instead of approaching
the people with a blank sheet.
Ncube said the 15 talking points
taken to the people did not cover all
aspects or provisions that should be
captured in a constitution.
“It is because we didn’t take the Kariba draft or
any other draft for people
to tick or reject. Who is going to fill in the
gap where people didn’t speak
because you didn’t ask them?” he
asked.
He gave an example of the Bill of Rights, which currently
makes up half of
what is contained in the current constitution, saying only
three issues —
homosexuality, protection of private property and land, and
the death
penalty — were addressed in the talking points.
Ncube said the
Bill of Rights should include the protection of life,
protection of liberty,
freedom of movement, freedom of association as well
as property
rights.
“There are some 24-odd sections and almost half of the
current constitution
is made up of the Bill of Rights in terms of wording,”
he said. “All those
things must be in the Bill of Rights, so how are you
going to put them in
the constitution? You are then going to sit down and
negotiate what goes in
and what doesn’t.
“That is why there is
nothing controversial; it is self-evident. It is just
that as politicians,
we are now beholden to the cliche “people-driven” and
it becomes treasonous
to say we asked the people but there are things we
didn’t ask them which we
still have to negotiate.”
http://www.theindependent.co.zw/
Friday, 29 July 2011 10:44
Brian
Chitemba
POLITICAL parties are scrambling to spruce up their
images and bolster their
presence in Bulawayo by setting up industrial
committees to stop the city’s
industrial flight.
Over 87 manufacturing
companies have shut down leaving 20 000 people jobless
and about US$100
million is required to resuscitate the ailing industrial
sector.
Finance minister Tendai Biti set aside a US$40 million
revolving fund to
assist struggling companies in his mid-term budget review
on Tuesday.
Biti’s fund comes in the wake of months of talk of
Bulawayo industrial
revival by political parties hoping to benefit from the
city’s growing
despondency over relocation of many major companies to
Harare.
The first committee to be set up was a cabinet taskforce led
by Industry and
Commerce minister Welshman Ncube and comprising Biti, Small
and Medium
Enterprise Development minister Sithembiso Nyoni, Indigenisation
minister
Saviour Kasukuwere, Agriculture minister Joseph Made, Labour and
Social
Welfare minister Paurina Mpariwa, and Economic Planning minister
Tapiwa
Mashakada.
The taskforce has done nothing to date as only
Ncube is a regular visitor to
the city. But observers say Ncube is using the
cabinet committee to boost
his political image. Ncube is busy rebuilding
structures of his MDC party in
the province.
Business in Bulawayo
has started treating Ncube’s cabinet taskforce with
suspicion after the
ministers failed to attend a crucial breakfast meeting
in the city a
fortnight ago.
Confederation of Zimbabwe Industries Southern Region
president Ruth Libode
said the ministers’ behaviour was not surprising since
it had become a
normal government reaction towards addressing issues
affecting Bulawayo.
Prominent city businessman Delma Lupepe
questioned why Bulawayo problems
took forever to be addressed while cabinet
reacted swiftly in other regions.
MDC-T Bulawayo province last week
set up a committee to address the
de-industrialisation of Bulawayo while
Zanu PF has also come up with five
standing committees to look into the
region’s developmental issues.
The sudden jostling by parties to seek
solutions has raised questions on the
sincerity of the parties. MDC-T has
enjoyed massive support in the city
since its formation while Zanu PF has
failed to win a parliamentary seat in
Bulawayo since 2000.
http://www.theindependent.co.zw/
Friday, 29 July 2011 12:57
Finance minister Tendai
Biti sees the mining sector growing by 34%, buoyed
by firming international
mineral prices, improved power supply arrangements
and output
growth.
International gold prices for gold reached an all time high of
around
US$1500/ounce during the first half of 2011 and breached US$1 600
last week,
helped by the US debt worries, while platinum prices also
remained buoyant
at around US$1800 in the same
period.
“As a result, the sector’s capacity utilisation is
expected to increase from
current levels of around 45 - 50%, to reach 60% by
year end, enabling mining
to achieve its targeted growth of 34%,” said
Biti.
Gold output to June 2011 stood at 5,5 tonnes, compared to 4
tonnes recorded
in the same period in 2010, a 37,2% growth.
Biti
sees gold mines maintaining momentum and producing around 13 tonnes of
bullion by December 2011.
Platinum output in 2011 is seen
increasing 20% from 8 639 kg in 2010 to 12
000kg, aided by the coming on
board of Unki Mine.
Biti says the positive growth trajectory is also
projected for all other
minerals except asbestos.
“With regards
to asbestos, the re-opening of Shabani Mine is a critical
imperative for the
economy. It is a tragedy that Zvishavane is increasingly
becoming a ghost
town, with upstream and downstream industries which depend
on asbestos
mining having now collapsed,” said Biti presenting his mid-term
fiscal
review. “Therefore, the on-going legal disputes between the
Government and
the original shareholder must be resolved amicably in order
to allow
immediate commencement of production,” he said.
But despite the
optimistic outlook for mines, Biti says Zimbabwe’s mining
sector growth this
year will not translate into increased revenue for the
fiscus.
He says
Zimbabwe’s tax regime was over-accommodating to mines.
“Second, is
the virtual absence of beneficiation and value addition in the
economy.
Third, is an obscure legal regime codified in the current Mines and
Minerals
Act,” said Biti. “Therefore, the long overdue amendments to the
Mines and
Minerals Act must be legislated,” he added.
Biti also called for
transparency in the diamond mining sector.
“Wherever rough diamonds
exist and are not managed transparently and openly,
they become a major
source of suspicion, conflict and national dislocation.
Put simply, there
are times when resources, instead of being a blessing, can
become a curse,”
said Biti.
“The reality of Zimbabwes situation is that there is no
connection between
Zimbabwe’s income from diamonds, its output and
international prices.”
Zimbabwe exported 716 958,50 carats from its alluvial
diamond mines in
Marange, with Marange Resources producing 357 819,80 and
Mbada producing 359
138,70 in the first half of the year.
Biti
says only US$103,9 million of diamond export shipments was accounted
for in
the first half of the year.
http://www.theindependent.co.zw/
Friday, 29 July 2011 12:54
Happiness
Zengeni
BASED on the growth of the calving rate, Zimbabwe’s
national herd of cattle
will maintain a steady trend but might not meet the
5,8 million target set
in the mid-term fiscal policy.
Finance
minister Tendai Biti said during the 2010/2011 season, the calving
rate was
45% up from 35% in 2009/2010. Based on that, the national herd
should grow
from the current 5,156 million to 5,8 million against the 2010
amount of
5,16 million, supported by US$7 million set aside in the 2011
national
budget.
Zimbabwe’s national herd of cattle has been on a downward trend and
might
not meet the 2011 target of 5,8 million from the current herd of 5,156
million (2010: 5,16 million).
According to latest figures
from the draft census from the Livestock and
Veterinary Services, Masvingo
is still the top producer at 997 634.
Matabeleland North and South make up a
combined total of 1,082 million.
Masvingo province carries the
greatest amount of cattle totaling 997 634.
Bikita district has 87 579
cattle; Chiredzi 196 616; Chivi 120 755; Gutu 184
418; Masvingo 128 098;
Mwenezi 180 850 and Zaka 99 318.
However communal farmers own the
bulk of the cattle at 2,67 milllion, which
are however not for commercial
purposes. Owing to favourable weather
conditions, Mashonaland East has the
highest amount of dairy cattle at 1
152.
Agricultural experts say
in order to improve the national herd, there is
need for grassroots
investments by government into transforming communal
cattle ranching into
commercial.
Experts say this can only be successful by focusing on
technology and the
high input costs, particularly for feed.
Globally it
is estimated it is estimate that production of livestock will
double in the
next 50 years.
http://www.theindependent.co.zw/
Friday, 29 July 2011
12:44
Reginald Sherekete
AN audit into the operations of
the Zimbabwe Stock Exchange (ZSE) found the
bourse’s asset register in
shambles and revealed general poor corporate
governance practices.
A
report compiled by Price Waterhouse and Coopers (PWC) to December 2010
recommended that assets belonging to the ZSE should be physically verifiable
and be registered in the name of the exchange.
The PWC report
says there was risk of misstated financial statements at the
ZSE through
recording of nonexistent assets and fraudulent disappearance of
assets.
“The exchange is at risk of financial loss and
misstatement, service
failure, control failure and regulatory non-compliance
if the issues
outlined in the report are not urgently addressed,” said the
auditors.
The audit report released this year showed that assets
belonging to the ZSE
had not been registered in the name of the exchange but
appeared in the
financial statements of the exchange as
assets.
For instance, motor vehicle registration documents were found
in the names
of CEO Emmanuel Munyukwi and his wife Mrs R Munyukwi, but were
recorded as
fixed assets in the register of the exchange. Although the
change of
ownership of a Mercedes Benz S350, registration number ABI-1856
from the ZSE
to Munyukwi was effected on May 16 2009, the vehicle was not
removed from
the exchange’s asset register.
The ZSE management
commented that the Mercedes Benz S350 was inadvertently
registered in the
name of Munyukwi on its purchase and the asset was
physically verified in
the audit.
“Mr Munyukwi is in the process of purchasing the E220 and
records will be
accordingly regularised,” the report said.
The
report also found discrepancies in the reconciliations of brokerage fees
paid to the exchange by brokers and amounts computed by the exchange.
“We
have noted that the brokerage income is paid by brokers based on amounts
that are computed and there is no reconciliation to ensure that the
brokerage paid is what is due to the exchange based on the records of trades
maintained by the exchange,” said PWC.
The report also found
variances due to underpayments by brokers which were
not recovered by the
exchange. While the variance might have been small, the
auditors felt that
the exchange was at high risk of a potential material
financial loss if
underpayments go undetected.
In the report, the ZSE acknowledged the
variances in brokerage fees and
indicated recommendations would be effected
immediately. Other findings
included possible non-attendance of committee
meetings as there was no
available documentation of meetings during the year
under audit.
For instance, there were no minutes of the Executive
Committee, Listing
Committee, Surveillance Committee, Central Depository
Settlement, Disputes,
Legal and Lobbying, Finance and Budgeting and the
Membership committees.
“The Exchange Committee and subcommittees
should meet at least once every
quarter in line with best corporate
governance practice, and the minutes of
such proceedings documented,” said
PWC.
The auditors also recommended that minutes of such proceedings
should be
compiled into bound books and kept at the exchange office as
required by the
ZSE Act.
“Recommendations have been noted and
will be taken up with the Committee,”
said ZSE management in response to
auditor’s recommendations.
Other recommendations by PWC include the
separation of the bank accounts of
the Security Fund and that of the ZSE so
that resources are accounted for
separately, and that a formal policy should
be drafted to provide guidance
with regards to management allowances such as
travel.
http://www.theindependent.co.zw/
Friday, 29 July 2011 11:37
Eric
Bloch
THERE are many nails in the coffin of the desperately needed
recovery of
the distressed Zimbabwean economy. They range from the endless
political
instability to the destructive mouthings of the Minister of
Indigenisation
and Economic Empowerment, Saviour Kasukuwere; the dismal
circumstances of
most parastatals and their consequentialiy inadequate and
erratic service
delivery; the recurrent governmental authorities’ disregard
for property and
human rights; the disrespect for international and national
laws; to the
insolvency of government absence of capitalisation of the
central bank.
They also include gross money market illiquidity and the
financial
instability of many in banking institutions, the economically
counterproductive customs tariffs impairing the operations of industry, and
the gargantuan divide between employers’ and labour’s income. These are but
a few of the ongoing drivers of Zimbabwe’s distraught economic
circumstances.
One of the most pronounced of the numerous ills
that afflict the economy and
jeopardise substantive recovery is the
magnitude of corruption that has
become endemic in Zimbabwe, and is
continually intensifying. Most
Zimbabweans are inherently honest, but when a
man’s stomach is continuously
rumbling from hunger and his children are
ceaselessly crying because of the
pangs of starvation, that inherent honesty
disappears. In addition to those
driven to corrupt and dishonest practices
by extreme poverty, there is that
minority (usually already well-endowed
with assets) driven by intense
avarice to enhance their already substantial
wealth.
Although the former’s rationale for resorting to corrupt and
unlawful
practices can be understood, despite the criminality and nationally
adverse
consequences thereof, the unlawful self-enrichment acts of the
latter can in
no manner be even remotely justified.
The greatest
tragedy of Zimbabwe’s widespread corruption is the extent to
which it
contributes to ongoing economic morass and resultant suffering for
millions
of the populace, which in turn contributes to yet further
intensification of
corrupt practices by even greater numbers. So widespread
has corruption
become that I recall a recent discussion between myself and a
government
minister wherein he said: “By now there are only two honest
people left in
Zimbabwe”. I responded: “Really? Me and who else?” to which
he had the grace
to look embarrassed and to remain silent!
To a very great degree,
corruption exists within the corridors of
government, in several different
forms, resulting in its ongoing
insufficiency of funds to service national
needs. A few of the known
corrupt circumstances and practices prevailing
are:
An estimated 75 000 ghost workers in the employ of the
state, which
means that various civil servants or their hierarchy are
enriching
themselves with the salaries and wages of those non-existent
employees.
Even if each of the fictitious civil servants is paid a meagre
US$150 per
month, that represents a misappropriation from the fiscus of
US$135 million
each year. Especially disturbing is that there were
governmental
disclosures of this criminal circumstance more than four
months ago, but as
yet there has been no public statement of requisite
action being taken to
curb the fraud and bring the culprits to book.
Various government ministers have intimated beliefs that there are
diverse
civil servants, including many employed at senior levels, who
recurrently
make claims for reimbursement for expenditures allegedly
incurred in the
fulfillment of their duties (inclusive of travel and
subsistence expenses),
when such expenditures were either not incurred, or
were unrelated to the
claimants’ duties.
Countless industrial, commercial and services
enterprises have been
subjected to demands, for payments (secretly
effected), or other benefits in
kind in consideration for the award of
tenders and contracts. Where the
private sector disgracefully succumbs to
such demands, the attendant cost
inevitably impacts upon the tender or
contract prices, thereby increasing
government’s expenditures and its
consequential fiscal deficits.
It cannot be credibly disputed that
public servants use governmental
supplies for private purposes. By way of
example, hundreds (if not more) of
children of government employees can be
seen using stationery for school
purposes, which stationery is clearly meant
for government use.
Undoubtedly, many will also uplift for themselves other
consumables such as
toilet paper, tea, coffee, sugar, soap, detergents and
other cleaning
materials. Equally, they unhesitatingly use their employer’s
telephones to
make personal calls within the country, region or
internationally.
Those who do expropriate such goods and services
perceive them to be
legitimate employment perks, notwithstanding the absence
of any contracted
rights to those goods and services. They will similarly
seek to justify to
themselves the use of government vehicles for private
purposes (and
sometimes even for illicit taxi services). In so justifying
they may contend
that the attendant costs to the state are minimal, but
cumulatively across
the spectrum of the civil service the cost to the
exchequer is very
considerable, further intensifying the fiscal
deficit.
It is an equally corrupt practice of various public servants to
utilise
confidential information gained through their employment for
soliciting
bribes, prejudicing the state, private enterprise, or the
population at
large.
Were all those practices to be markedly
contained, the state would not
endlessly incur unsustainable deficits, would
not have to resort to
punitively highly taxation measures, would be able to
address vitally
essential infrastructural needs, and could restore
Zimbabwe’s international
creditworthiness.
Tragically, these
incalculable, untenable, corrupt practices are not unique
to the public
sector, but are also very prevalent in all facets of the
private sector, be
it industry, commerce or otherwise.
Ranging from soliciting and
receiving secret payoffs for awards of
contracts, to the theft of raw
materials, stocks, tools, other goods, and
consumables, many private sector
employees are as criminally immoral and
corrupt as are many public
servants. The result is that the viability and
survival of enterprises is
in jeopardy as operational costs soar,
consequentially impacting upon
selling prices and hence, upon inflation.
If the Zimbabwean economy
is not to be buried, one of the many nails that
must be removed from the
coffin is substantial containment of the pronounced
corruption that ails the
country’s public and private sectors.
http://www.theindependent.co.zw/
Friday, 29 July 2011
11:23
Nyamutatanga Makombe
WHEREAS the recent declarations
by Brigadier-General Douglas Nyikayaramba on
who should lead the country
have been analysed within the context of the
post-2000 political
dispensation and need for security sector reforms,
taking a more historical
look to the mid-1970s could be more instructive on
the nature of reforms
which could deepen democracy in Zimbabwe.
Nyikayaramba should not be taken as
an arrant knave, but someone who
represents a system that is prepared to
fight in defence of its interests.
As such, taking what he said as a cue for
what is expected from the security
sector reforms may be missing the point
as this could only be addressing one
of the various symptoms of how deeply
entrenched the military, security and
intelligence is in our politics —
something that has evolved since the
mid-1970s.
The mid-1970s is an
instructive period in the political history of the
country as it marked the
distinction, conflict, struggle for power and
creation of alliances between
the political and the military elites not only
in the fight for
Independence, but also control of state power in
post-colonial Zimbabwe and
this is quite evident 30 years after
Independence.
One important
development was the Mgagao declaration of October 1975
authored by young
guerrillas in Tanzania who then became kingmakers in Zanu
PF, making
President Robert Mugabe the leader of the party — a position he
still holds
35 years later. The guerrillas, now the military, intelligence
and security
elite, continue to wield the hard power they had then, and it
is in this
context that one should approach the statements by Nyikayaramba
and their
possible impact, meaning and what power lies behind the words.
The
Mgagao declaration is instructive in that the armed forces realised that
they could be kingmakers without being the kings and at the same time make
sure that their interests and gains are safeguarded, hence there was no need
to remove their uniforms or leave the barracks. This marked the genesis of a
“deep state” and the deep politics now obtaining in the country. The term
deep state — usually used to describe the Turkish political system which is
now obtaining in many developing and developed countries — refers to a
situation where an entire nation is held hostage by a group of influential
anti-democratic coalitions usually comprising high-level elements within the
intelligence services, military and security.
Turkish Prime
Minister Recep Tayyip Erdoan, commenting on the murder of
Armenian Turkish
journalist Hrant Dink in January 2007, was prophetic when
he said: “Similar
instances of groupings of this kind are possible to
observe in some other
countries.” This is a clear pointer to the deep
politics prevailing in
Zimbabwe and it is tied to the umbilical cord of the
rise of powerful
military elites during the liberation war through to three
decades after
Independence.
As such, when Nyikayaramba speaks on who should be the
president of the
country he is not only addressing a specific aspirant. In
fact, he was
speaking on behalf of a powerful military, security or
intelligence cabal,
and already there are some supporting him despite Zanu
PF trying to
dissociate itself from his statements. This powerful cabal,
which has to a
very large extent been latent in the first few years after
Independence may
have rediscovered its power at a time when Zanu PF’s
fortunes were on the
decline, as was the case in 1976 when there was
dormancy in executing the
war after Herbert Chitepo’s death, to be followed
by revival after the
Mgagao declaration. The military-intelligence-security
elites, also referred
to as securocrats, rediscovered their pitch at the
same time as other
cliques such as liberation war veterans after
1997.
This powerful cabal, made up of elites who have a duty of
making sure that
the military, security and intelligence remain unitary, has
since 2000 been
flexing its muscles as is signified by their declaration on
the eve of the
2002 elections that they would not salute (honour) anyone
without liberation
war credentials. While the immediate audience could have
been the MDC, it
can also be stretched to mean those who may emerge from
within Zanu PF
harbouring presidential ambitions.
It is thus
important to locate the debate on security sector reforms within
the context
of the deep state and its deep politics. Calls for security
sector reforms
are premised on the perception that it is largely partisan
and, to borrow
from the likes of Samuel Huntington, should be
professionalised and
corporatised.
This approach, running like a silver thread in the
current debate on the
proposed reforms suggests that there are
“swingmen”—respected military
officers who may refuse to support the
authoritarian regime if they come to
believe that democratisation would be
profitable to the armed forces, the
intelligence and the
security.
In the absence of such swingmen, one would ask: how then
would the security
sector reforms be undertaken to move the country from a
deep state to a
public one? At the end of the day, it may be argued the
security sector
reforms within such a deep state may either be abortive or
stillborn as
those benefitting from the status quo would choose to sabotage
them. The
extent of the deep state can be seen in the involvement of the
securocrats
in running elections, engagement in the economy, dabbling in
politics and
location at strategic sectors especially mining, with diamonds
being one
very good example. Could one say Nyikayaramba is a loose cannon
who made
utterances which may catalyse the security sector reforms, or was
he being
realistic in that he knew they would come to
naught?
Trying to premise or strengthen the argument for security
sector reform on
what Nyikayaramba has said could add weight but given the
way the security,
intelligence and military is entrenched in our deep
politics, the result
could be cosmetic reforms. As such, it is important to
look beyond returning
the soldiers to the barracks for solutions to the
problems of a deep state.
Zimbabwe may have failed to seize the
constitutional moment to make such
deep meaning reforms to return the state
to the public, but there are other
potential game changers.
One
way could be a holistic approach to remaking a public state, where
appointments to commissions, boards and other strategic sectors is done
publicly. This could be through parliament or the involvement of the
populace via various participatory mechanisms.
There are a
lot of other things, as academic and author Peter Dale Scot
proposed when
tackling the same issue after the September 11 bombings in the
US in his
book Road To 9/11, which can be done to disentangle Zimbabwe from
this deep
politics. This includes the participation of the populace in
everyday
politics, harnessing information communication technologies for
social and
political engagement and a reconstruction of national
institutions. This, it
can be argued, goes beyond mere security sector
reforms which may not be
deep enough to uproot our deep politics and state.
Makombe is a Harare-based
political scientist.
Makombe is a Harare-based political scientist.
http://www.theindependent.co.zw/
Friday, 29 July 2011
11:25
CONGRATULATIONS to the Sunday Mail which managed to write a
front-page story
about the invasion of parliament by a rowdy mob without
once mentioning the
party to which the mob belonged.
“Violence rocked
yesterday’s (Saturday’s) public hearing on the Zimbabwe
Human Rights
Commission Bill in Harare after a group of protesters
temporarily blocked
proceedings in scenes that saw a House of Assembly
member and journalist
being assaulted,” we were told.
“A good number of those who managed
to force their way in heckled Hwange
Central MP Brian Tshuma whom they
accused of singing the national anthem
with arms akimbo.
“Some of
them tugged him by the necktie and shoved him out of the
meeting.”
Another contingent outside the building denounced the Bill
which they said
should have been written in local languages. They forced
their way in
knocking over equipment.
What is so remarkable about
this story is that it was given banner treatment
spread across the front
page –– “Violence rocks parly” –– but omitted to
mention that the hooligans
responsible for this melee were Zanu PF members
seeking to quash discussion
of human rights issues.
So here we witnessed once again the former
ruling party perpetrating
violence in order to block democratic debate ––
something it always denies.
And the state-owned press, instead of telling
the public who was responsible
for this assault on parliament simply omitted
to mention the most salient
dimension to the story. Well done the Sunday
Mail. This was quite an
accomplishment.
Then we had a similar
smoke-and-mirrors act, also on the front page, about
how the prime minister
has the highest expenditure on travel of all
government departments. His
office has a staff complement of 52 but he has
no mandate in the conduct of
foreign affairs, the story said.
Is that so? We understood the prime
minister to be charged with restoring
international relations and chanelling
aid and investment to Zimbabwe.
Perhaps he should stop bothering given the
level of hostility to his mission
in the state press. Anyway, if this task
was handed to Simbarashe
Mumbengegwi we all know what the result would be.
What happened to the last
round of reengagement? And what point is there of
insulting those you want
to “engage”?
Then there were all sorts
of childish accusations about Tsvangirai’s office
being a listening post for
the West and running a parallel government. The
writers of these far-fetched
stories don’t seem to understand that the
interests they act as apologists
for have no prospect of raising aid or
investment so long as Zanu PF is at
the driving wheel. The disruption of the
hearings on the Human Rights
Commission said it all. This is a rogue regime
that remains unreconstructed
and in all seriousness believes the way forward
is to call the US ambassador
“Uncle Tom”. That –– and crude attacks on
Lindiwe Zulu –– is the best they
can do. Schoolboys could do better.
However, we liked the heading: “The high
flying PM”. That’s obviously going
to invite the question: Who is the
highest flyer of them all and feels a
compelling need to attend even youth
meetings!
Readers may recall suspicions we raised recently about
the Child Parliament
which featured youngsters dressed up as generals and
policemen. We asked
where the initiative for this outfit came
from.
Speaking to a youth forum at the UN this week President Mugabe
cited the
Child Parliament as among measures introduced by his government to
give
guidance to youths.
So there you have it. Exactly what we
suspected.
The international press has had a field day with Mugabe’s
attendance at the
UN High-Level meeting on youth. He and the president of
Benin are the only
heads of state attending, it is reported. The rest are
genuine youths –– ie
under 87.
Saviour Kasukuwere is in the
president’s delegation where he extolled the
virtues of indigenisation. In
his speech, Mugabe challenged member states to
institute policies that will
nurture and empower the youth so that they play
an integral role in the
socio-economic and political affairs of their
nations.
Kasukuwere said
Mugabe was attending the meeting to “show government’s
commitment to youth
empowerment”.
This presumably includes the role of youth militias in
elections and the mob
that forced its way into parliament last weekend to
discuss human rights!
Zimbabwe has one of the highest levels of unemployment
in Africa, at over
80%. Did anyone mention that?
Was Grace in
the president’s delegation to New York?
Sorry, we forgot. The AG has
warned our colleagues in the legal profession
not to “unnecessarily” mention
her name. But that can’t include journalists
who have every right to report
on the trial. And it is up to the court to
decide who can or can’t be
mentioned.
The AG’s office has warned lawyers representing four South
African truck
drivers in the US$1 million trucks deal fraud case against
“unnecessarily
mentioning the name” of first lady “Amai” Grace
Mugabe.
Chief law officer Chris Mutangadura has objected to the
naming of the first
lady when she was not mentioned in the papers relied
upon by the state.
Mutangadura said defence lawyer Beatrice Mtetwa had no
basis for repeatedly
mentioning Mrs Mugabe’s name because she had no
evidence in linking the
first lady to the case.
We thought the
Herald did quite a good job in not mentioning the first lady’s
name in its
otherwise extensive coverage of the trial! Mutangadura said the
trial could
not continue in the absence of Ping Sung Hseih who is the
co-accused in the
case.
Transmedia Corporation will next month launch broadcasting
equipment in
Beitbridge that will see the border town receiving local
television and
radio signals for the first time, the Herald
reports.
Transmedia chairman Dr Paul Chimedza last week said the
launch of the
“state-of-the-art equipment” early next month would ensure
that the people
of Beitbridge receive broadcasts from the country’s own
radio and television
stations.
“We have brought in new
transmitters in an effort to ensure that people hear
their own news and
watch their TV,” Chimedza said.
Thirty-one years after Independence
Beitbridge residents will finally get a
feel of the “first and permanent
choice”. We are sure they haven’t missed
much!
If only the
“state-of-the-art equipment” was commensurate with equally good
content.
Beitbridge residents will likely continue to appreciate SABC
programmes ––
some of which will be in their own language. What they can
look forward to
from ZBC is hearing about the “Head of State and Government
and
Commander-in-Chief of the Zimbabwe Defence Forces” and watching the
likes of
Tafataona Mahoso and Vimbai Chivaura.
It is ironic that they are
setting up transmitters in Beitbridge when the
rest of the nation has
discarded the “national” broadcaster.
Meanwhile we were amused by a
reader’s comment on ZBC’s website which said:
“Why bother”?
We
couldn’t agree more.
ZBC never disappoints on humorous stories.
Last Friday they gave us another
scorcher: “Private media caught offside
again.” This time the private media
was hammered for saying President Mugabe
was humiliated at Andrew Sikajaya
Muntanga’s burial by the latter’s son
Dominic.
“Analysts have scoffed at claims by some sections of the private
media that
the late Cde Andrew Sikajaya Muntanga’s son, Dominic humiliated
the Head of
State and Government and Commander-in Chief of the Zimbabwe
Defence Forces,
President Robert Mugabe when he was addressing mourners at
the national
shrine.”
Observers, said ZBC, say such sentiments by
the private media clearly show
their agenda is one of distorting facts in a
bid to misinform the public and
score cheap political
points.
“Contrary to these reports President Mugabe gave a eulogy
that painted Cde
Muntanga as a legendary freedom fighter whose larger than
life achievements
will be a difficult feat to emulate.”
Who can
forget Dominic’s fiery speech in which he said of his father: “He
fought
against the oppression of the Tonga people, but the jury is still out
on
that one.”
“Unfortunately, he was again imprisoned in a free
Zimbabwe,” Dominic goes on
to say.
“In 1990, he won the Zanu PF
primaries but was disqualified over false
allegations. After my father
dropped out, Zanu PF had a decade-long
electoral loss. We all know the open
palm (MDC) has prevailed over the fist
(Zanu PF) since
then.”
Mugabe then reacted angrily and deviated from his prepared
speech saying
Dominic would never be like his father but conceded that
Gukurahundi was a
“nasty period”.
Who is offside here? ZBC it
seems.
Meanwhile ANC Youth League president Julius Malema was
ducking and diving
this week as pressure continued to mount about how he
funds his lavish
lifestyle.
A youth league media briefing at ANC
headquarters, Luthuli House, billed as
an attempt to “clear the air”, turned
into a damp squib when the league’s
leadership failed to reveal anything
about Malema’s Ratanang Family Trust,
which he has been accused of using to
receive cash from businesses that
benefit from government
tenders.
Instead of responding to questions, the youth league’s
deputy president,
Ronald Lamola, and secretary-general, Sindiso Magaqa,
attacked the media,
accusing them of trying to divert attention from the
league’s calls for the
nationalisation of mines and the expropriation of
land without compensation.
Last Saturday Malema failed in his urgent
application for a High Court
interdict that would have prevented City Press
from publishing the
allegations about his trust.
Cde Malema must
be wishing he stayed north of the Limpopo border where such
a scandal would
be a non-event.
After a barrage of vitriolic remarks about the
Zimbabwe Independent in
Jonathan Moyo’s Sunday Mail column two weeks ago, we
were curious to hear
from a subscriber to that partisan newspaper that he
found a copy of the
little-read (not “Little Red”) Southern Times inserted
in it this week.
Circulation evidently needs a boost, especially when
you have Mabasa Sasa at
the helm pushing Zanu PF’s ridiculous conspiracy
theories!
We were interested in the obituary of apartheid warrior
General Magnus Malan
carried in the Sunday Times last weekend. In particular
we “noted” that his
fellow officers “referred to him sneeringly as a
technocrat. “After a few
drinks they called him an idiot.”
When
PW Botha resigned, Malan’s star quickly waned, we are told. In 1990 FW
de
Klerk packed him off to the department of water affairs where he sank
without trace.
Now there’s a thought!
http://www.theindependent.co.zw/
Friday, 29 July 2011 11:11
LOOKING
at the lack of fiscal space and manoeuvrability the Finance
minister, Tendai
Biti, had, one point still sticks out like a sore thumb,
the role of the
banking sector. The minister has corroborated what the
governor said last
week that out of the lines of credit available to the
tune of US$1,6
billion, a billion has not been taken up. How come?
The private sector
has quickly been blamed. Treating the banking sector as
a sacred cow
continues to be a source of worry. Or is this because the
powers that be
patronise and probably get away with interest- free loans?
The minister
raises his concern about ensuring that banks are profitable, no
chef, it’s
the companies involved in production whose profitability should
be
ensured.
Who would be crazy enough in this environment to borrow
at 37%, or even half
that price? But that’s exactly what industry is
supposed to do, and be
viable! What we need in Zimbabwe is industry-led
growth. We are yet to hear
of banking-led growth. As mentioned elsewhere in
this edition; a paltry
US$70 million was availed to the Zimbabwe Economic
Trade Revival Facility
(ZETRAF). That’s the only source of funds that may be
availed to the private
sector at concessionary rates. Concessionary, or at
least reasonable rates,
are what this country needs to move forward. If
countries in the EU, whose
economies are more robust than ours, need
subsidies and hence the whole WTO
process is stalled because of this what
more little Zimbabwe?
We are not advocating treating our private
sector with kid gloves, but we
must be realistic as to an uneven global
playing field. Biti congratulates
NSSA’s overall package of 15% as being a
step in the right direction.
That is 10% interest, three percent
handling fees and two percent “other”
fees. The fees alone are already 5%!
Companies in the developed world would
fall over each other just to get that
as interest. There is such a thing as
a basis point Mr minister. It is quite
a substantial return on profit. For
the record, yesterday’s London Interbank
Offered Rate for one year was
0,75%. We had high interest rates when we had
hyperinflation, and then it
made sense.
No one is standing in the
way of banks attaining positive interest rates.
But with hyperinflation
having been relegated to the museum, what is the
justification for the
absurdly high interest rates? Barring the political
turmoil and the
subsequently poor credit rating for the country,
international lenders would
have been falling over each other to lend to
Zimbabweans.
What our banks are engaging in is collective
stupidity. They’re still so
much trapped in the short-termism of the lost
decade. Industry itself has
already realised this and many are operating on
smaller margins. If our
bankers are still interested in the phenomenally
high returns, then they
should join the drug dealers and gun runners of this
world. There, the high
returns await them as the risks a higher. In fact,
the way the banks insist
on charging the exorbitant rates, one wonders if
they are not already high
on one of the drugs.
The banks are
putting themselves in a catch 22 situation. They are charging
more handling
fees and commissions to make up income because they have few
clients as the
country is underbanked.
They have fewer clients willing to
deposit their money with them because
they are not giving depositors
interest. And those that deposit their money
with banks are quickly
withdrawing it and taking it elsewhere simply because
they are not getting
anything for it. The days of the “high rate” are gone.
It’s time the bankers
got detoxified from the high interest rate weed they
have been smoking. Biti
and Gono should crack the whip. As the Chinese say
“Hot bottom make (sic)
cool head.”
http://www.theindependent.co.zw/
Friday, 29 July 2011 10:57
NOW
that the mid-term fiscal policy has passed and comments have been made
and
continue to be made over the review, the only thing remaining is to see
whether the statement is in alignment with the current state of the
economy.
Already forecasting a deficit of US$700 million, Finance minister
Tendai
Biti has definitely no fiscal space to manoeuvre and yet again is
expected
to deliver nonetheless.
But in his speech, Biti made it
clear that he is no magician and should not
be expected to deliver since the
correct fundamentals are not yet in place.
The thrust of the budget has not
changed significantly, with the government
set to archive its revenue
targets by year-end. But the country is still
facing a myriad of
multi-faceted problems. And just as Biti says “we can
only eat what we have
gathered,” the nation needs to appreciate the supply
side challenges which
continue to choke all economic activity.
Measures proposed in the
review statement are only a drop in the ocean given
the many challenges
bedevilling the nation. Only if the real problems are
solved will we avoid
monetary measures which leave the fundamentals
unresolved.
Without a doubt the political scene remains at the
epicentre of our
challenges and the country risk profile and international
relations
desperately hangs over the resolution of our political
differences. What we
truly need is a shift in mindset, so that we shy away
from flogging dead
horses and focus on searching for the real solutions
which can sustainably
rebuild our economy.
That is why the
elections roadmap and its aftermath are of paramount
importance. There is a
real need for political will to see the economy and
livelihoods of
Zimbabweans improve. Only a truly founded political will can
sustain the
current economic upturn.
The duty imposed on basic goods will just be
passed on to consumers, thereby
making groceries more expensive and
squeezing the already limited disposable
incomes. The other thing that
should be questioned is if the local industry
will live up to expectations
and create a constant flow of products.
Already, Olivine cooking oil is not
on the supermarket shelves while the
Natfoods family of oils is in
inconsistent supply.
The real gist therefore remains in the
availability of funding for industry
to improve capacity utilisation to
levels above 50% so that products become
more readily available. Without
funding, companies will continue to get
expensive debt and not have enough
working capital to get back to viable
production. The list of companies in
debt keeps growing and will spread to
other sectors of the economy if there
are no lines of credit. RioZim’s US$50
million debt, Aico’s +US$20 million
borrowings, African Sun’s crumbling
state while CFI and Star Africa continue
to sink. Should the minister only
wake up when these companies have gone
through fire sales. Aico is seeking
to raise US$8 million from disposals and
CFI a similar amount, while Star
Africa, a critical industry, is also in
line. Recapitalisation should have
been at the core if not the theme of
this review.
The $0,04 per litre fuel tariff imposed on fuel
transported by road is
clearly not in alignment with what’s happening on the
ground. The cost was
passed on to the consumer. We understand the minister’s
bid to promote
pipeline and rail ferrying of fuel, but that has not worked
and there should
have been a policy shift in his review. Feruka needs
private investors for
its resuscitation and so does NRZ and other state
enterprises. And not
putting a timeline to state enterprise reforms exposes
the minister’s
strategy.
On agriculture, the minister identified
areas that needed intervention that
are more pressing than the Land Audits
and resolving the issue of
compensation, an issue which has deep political
undertones and will probably
never get resolved. But already, GMB failed to
get US$5 million for its
stock feed plant in Norton and is looking for
private investors to take up
the project.
There are other issues
that should have been highlighted, especially since
they are being touted as
national policy. The September deadline on
indigenisation of the mining
sector is drawing closer and the minister
concerned has talked about the
Sovereign Wealth Fund which will hold 31% of
the equity. Will it not fall
under the Finance ministry? If it will, why was
it not provided for?
http://www.theindependent.co.zw/
Friday, 29 July 2011 11:10
By
Constantine Chimakure
MEDIA and Information permanent secretary
George Charamba’s declaration to
the Parliamentary Portfolio Committee on
Media and Information Communication
Technology that there will be no
amendments to the Access to Information and
Protection of Privacy Act
(Aippa) until after the constitution-making
process is complete is yet
another illustration of how disjointed the
inclusive government
is.
Charamba’s utterances are in direct conflict with what is
contained in the
Global Political Agreement as well as the Government Works
Programme (GWP)
launched last year and spearheaded by Prime Minister Morgan
Tsvangirai. Both
enunciate the immediate institution of media reforms, not
after the
constitution-making process as Charamba claims.
The GWP
has an impressive legislative agenda. Government proposes to
democratise the
media space by introducing two Bills — a Freedom of
Information Bill and
Media Practitioners Bill.
The Freedom of Information Bill will
replace the despised Aippa and will
simplify the procedures for accessing
information in line with Sadc best
practice, while the Media Practitioners
Bill will provide for the regulation
of media
practitioners.
Charamba went on to say that the Voluntary Media
Council of Zimbabwe should
be formed under the auspices of the Zimbabwe
Media Commission, a statutory
body.
Such utterances beg the
question of how it would remain voluntary when
incorporated under a
statutory instrument.
In November last year the same Charamba said
government has no intention of
issuing broadcasting licences to private
players in the near future as
required by the GPA until it had developed the
capacity to monitor and
regulate the activities of the new
players.
According to the GPA signed in September 2008, the three
ruling parties had
agreed that government should ensure the immediate
processing of all
applications for re-registration and registration in terms
of both the
Broadcasting Services Act as well as Aippa. It called on
Zimbabweans to make
applications for broadcasting licences.
It is
clear that there are elements in the inclusive government whose job is
to
undermine and stifle the media. They do not want the media to play its
oversight role on the three arms of the state — the executive, legislature,
and judiciary. The guilty are understandably afraid of the prying eyes of
the media. Media plurality is a reality of the 21st century and trying to
reverse it is akin to rolling back the hands of time.
The Media
and Information ministry, it seems, is ignoring and subverting the
tenets of
the GPA to suit the Zanu PF agenda.
They have, through these
pronouncements, rubbished the agreement on media
reforms. No wonder it has
been difficult for the full implementation the GPA
to become a reality. When
the Information ministry overrides what was agreed
by the three principals,
then it becomes clear that we have a serious
problem on our hands which
needs to be addressed urgently.
The Media Institute of Southern
Africa aptly described the reluctance by
Charamba and company when it said:
“The assertions by Charamba are signs of
Zanu PFs allergic reaction to
reforms. Media reforms are inevitable, they
are by public demand. Zanu PF
wants to block these reforms and continue with
its propaganda agenda on its
failed policies and rampant corruption that is
now in the public
domain.
By maintaining the status quo and denying the entry of
private broadcasters,
Charamba and his masters are desperately trying to
prop-up Zanu PFs
declining grip through the airwaves ahead of elections
expected next year.
While Charamba admits that there are no clear
regulations on political
advertising, ZBC is churning out Zanu PF
propaganda, bordering on hate
language hourly while advertisements of
national interest such as the
constitution-making process have been denied
space.”
As long as this circus is allowed to continue, media reforms
will remain a
distant dream.