Chiwenga guns for presidency

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:58

Faith Zaba

IN a new twist to President Robert Mugabe’s unpredictable succession battle,
a group of generals in the army disgruntled by Zanu PF’s failure to resolve
the issue are reportedly pushing for Zimbabwe Defence Forces Commander
Constantine Chiwenga to take over from the ageing leader battling with
ill-health.

Impeccable sources told the Zimbabwe Independent that a coterie of
commanders, working with Zanu PF politicians, want Chiwenga to retire from
the army and enter the fray to succeed Mugabe.

Chiwenga –– referred to within military circles as “Zim 2” –– implying he is
effectively number two to Mugabe –– is said to be open to the idea of an
active role in politics after quitting the army. Chiwenga has been studying
in recent years and this has been seen as part of his preparation for a
political career after his quitting the military. He is currently studying
for a Master of Arts degree in International Relations at the University of
Zimbabwe.

Efforts to obtain comment from Chiwenga over the past week were
unsuccessful.

However, one general, who preferred anonymity, said: “When the Mugabe era
ends, there is a lot of candidates to take over from him, including people
like Chiwenga.”

Chiwenga’s touting as a potential candidate to replace Mugabe would trigger
manoeuvres in Zanu PF as those who have been slugging it out in the
protracted power struggle try to defend political ground they have gained so
far.

Other contenders in the Mugabe succession race include Defence minister
Emmerson Mnangagwa, who is said to have the backing of the military,
Vice-President Joice Mujuru, Indigenisation minister Saviour Kasukuwere and
Security minister Sydney Sekeremayi. John Nkomo, who has fought his way up
to the Zanu PF presidium defeating Mnangagwa along the way, is also seen as
having a distant chance, potentially as a compromise candidate.

Information obtained by the Independent after off-the-record briefings with
army commanders suggests that Chiwenga could be interested in becoming
president after Mugabe. Chiwenga is one of the senior commanders who support
Mugabe to the hilt. A clique of state service chiefs backing Mugabe also
includes Police Commissioner-General Augustine Chihuri, Prison Commissioner
retired Major-General Paradzai Zimondi, Army Chief of Staff Major-General
Martin Chedondo, Brigadier-General David Sigauke and BrigadierGeneral
Douglas Nyikayaramba, among others.

Nyikayaramba said last week Mugabe should rule for life and that Tsvangirai
would never rule Zimbabwe. He did not indicate who after Mugabe the army
wants to see in power.

Sources said the generals want to create a model like that of Botswana whose
President, Lieutenant- General Ian Khama, is a former military commander.
Khama has, since he took over from Festus Mogae three years ago, handpicked
loyal friends from the military and deployed them in top government and
party positions.

When he became president in 2008, Khama appointed a former army commander,
Lt General Mompati Merafhe, as he deputy. Other former military officers in
his cabinet included former army captain Kitso Mokaila, his cousin
Dikgakgamatso Ramadeluka, a brigadier who was appointed to the Ministry of
Justice, Defence and Security, and Moeng Pheto, a former major-general.

Khama’s militarisation project cascaded down to senior management of the
civil service.

Informed sources said the generals are fed up with the endless infighting
within Zanu PF, which has partly led to Mugabe’s defeat by Prime Minister
and MDC-T leader Morgan Tsvangirai in the first round of elections in 2008,
and want a change of direction. Chiwenga has described Tsvangirai as a
“sellout”.
The army commanders, it is said, believe for Zanu PF to survive going
forward they need to intervene with a candidate from their ranks in civilian
clothes and halt the party’s slide.

Army generals told the Independent this week that Zanu PF’s top leadership
was to blame for the party’s waning support, saying the party lost key
constituencies in the 2008 parliamentary election because politburo members
imposed candidates and were fighting among themselves.

One commander cited the recent example of the politburo’s mess up on its
decision to impose the party chairman Simon Khaya Moyo as candidate for the
Speaker of Parliament’s post when it was clear that he would not get the
full support of all Zanu PF legislators.

One top army officer said: “It was wrong to impose SK Moyo for the Speaker’s
post.  What we are saying this time round is that it is better to even put
huku (a chicken) if it is what the people want and if this ensures that we
win,” he said.

“Our aim is to remain in power.  So if huku can win, then we should nominate
that huku as our candidate, otherwise if they are not careful and if things
don’t go our way, we will take over –– pfuti dzinorira (we will go to war).
If they continue to do that (impose candidates), we will not win elections
and then they will have created conditions for us to field our own
candidate.”

Another general said if Mugabe dies in office, the military would only
accept their preferred candidate even though parliament will sit as an
electoral college to choose his replacement.

“The Electoral College will sit but if they elect a candidate that we don’t
want, we won’t accept it. It depends on which candidate they choose,” the
commander said without saying who their preferred candidate is. “We support
our commander-in-chief and below him, we have the commander of the Zimbabwe
Defence Forces, General Chiwenga who is also capable of taking over if needs
be”.

Mugabe, in order to maintain control of both the party and the government,
has been appointing former military personnel to run the party. Mugabe has
also previously appointed retired soldiers to boards and top management
posts at parastatals.

The army has proved loyal to Mugabe and effective in the political
assignments he gave them. It has helped ensure Mugabe’s continued rule,
mainly during the presidential elections in 2002 and 2008.

Mugabe views military personnel as loyal to him and this has been shown
through statements from top army and security chiefs, who have vowed not to
support anyone without liberation war credentials.

ReNaissance Bank placed under curatorship

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:55

Bernard Mpofu/Paul Nyakazeya

THE Reserve Bank has placed financially-beleaguered ReNaissance Merchant
Bank (RMB) under curatorship for six months after establishing that there
was a systematic abuse of depositors’ funds, a high level of non-performing
insider and related-party exposures that included a US$9,8 million loan to
former CEO Patterson Timba, and gross violations of banking laws and
regulations.
The merchant bank, which scored a first by being put under such management
since the economy was formally dollarised two years ago, is also technically
insolvent, with a negative capital of about US$16,7 million as at April 30
and a 38% exposure to insiders. The curatorship is in terms of Section 53 of
the Banking Act.

“The primary purpose of the curatorship is to protect depositors, preserve
the assets of Renaissance Merchant Bank and protect stability of the
financial system,” RBZ governor Gideon Gono said at a press conference
yesterday.  Reggie Saruchera of Grant Thornton Camelsa chartered accountants
is the curator.

The central  bank has also fired, with immediate effect,  the boards of
directors of RMB and its parent Renaissance Financial Holdings Ltd (RFHL)
comprising  group chairman Lovemore Moyo, CEO Timba, group executive
director responsible for business development Dunmore Kundishora,
non-executive director Robert Tindwa, and executive director — treasury and
structured finance Shepherd Shara.

Also ousted are head of internal audit Shepard Muzivi, manager for treasury
operations Norest Kwete, group accountant Tatenda Madzingo, and group
company secretary, Lydia Timba.

The arrangement, which Gono termed “recuperative curatorship” comes after a
series of investigations into RMB and its parent company RFHL which started
in April. The investigations follow a tip off from a whistleblower within
the financial group after controversial businessmAn Jayesh Shah was not
repaid money he had lent to the former CEO, Timba.

RBZ investigations established that the major shareholders were able to
maintain their shareholding in the bank through elaborate schemes which
involved borrowed funds and abuse of deposits. The merchant bank also bought
back some of its shares using depositors’ funds in violation of Section 32
of the Banking Act.

“In order to preserve the financial resources of the ReNaissance Merchant
Bank and further, to prevent the uncontrolled withdrawal of funds and assets
from ReNaissance Merchant Bank, the banking institution will close its doors
to the public on June 3 2011 (today) for a period of two weeks to facilitate
the curator’s assumption of effective charge of the bank. Accordingly
ReNaissance Merchant Bank will re-open its doors to the banking public by
Monday, June 20 2011 under the management of the curator,” Gono said.

Gono said the two-week probe which began on April 15 revealed a plethora of
deficiencies within the group which included inadequate capitalisation,
inappropriate shareholding structure, disintegration of corporate governance
structures, systematic abuse of depositors’ funds, high level of
non-performing insider and related-party exposures, chronic liquidity and
income generation challenges and gross violation of banking laws and
regulations.

Given the capital deficit, Gono said the bank requires us$32 565 833 to
comply with regulatory capital requirements.

“The capital position is projected to worsen to minus US$39 224 968 if
contingent liabilities on account of Renaissance Financial Holdings are
factored into the above position of minus US$16,6 million. Accordingly, the
bank will require approximately US$55,1 million to comply with regulatory
capital requirements,” he added.

Gono said Timba had direct and indirect shareholding amounting to 44,66% in
violation of Section 4(b) of the banking regulations (SI 205 of 2000) which
limits the shareholding of an individual and his interests in a banking
institution to 25%

Kundishora is said to have direct and indirect shareholding amounting to
24,24% and together with Timba and Clementine Sibve the three founding
members and major shareholders have a total interest of 78,03% in the bank.

“Collectively executive management owns about 89,17% of  the institution,
while non-executive directors control a further 0,17% of the group’s
shareholding,” Gono said.

“The current shareholding structure of RFHL hinders effective regulation and
supervision as it has facilitated owner-managers of RMB to masquerade as
non-executive directors.”

Commenting on the state of the entire banking sector, the central bank said
the sector remained “healthy” despite warning bankers against indulgence in
fraudulent and other undesirable activities.

The curatorship marks a U-turn on Gono’s earlier remarks where he said the
bank had no appetite for this form of management. He defended the position
saying “that is still the position but a lack of appetite does not preclude
one from partaking in a necessary diet.”

ReNaissance becomes the first financial services institution to be placed
under curatorship since the 2003/4 banking crisis that claimed Trust Bank,
Century Bank, Time Bank, Barbican Bank and Royal Bank. Of the five banks
Trust, Royal and Time bank have however been re-licensed and are
operational.

Rescue plan for ailing banks in the offing — Biti

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:50

Dumisani Muleya

IN a bid to prevent more bank failures after the ReNaissance Merchant Bank
was yesterday placed under curatorship for six months, Finance minister
Tendai Biti has ordered Reserve Bank governor Gideon Gono to come up with a
plan to save from collapse other vulnerable banking institutions in the
market as part of broad measures to protect the struggling financial
services sector.
Biti told the Zimbabwe Independent yesterday that he had instructed Gono to
come up with a “roadmap” on the situation of weak and exposed banks which
are battling due to capital, liquidity and solvency problems.

“I have asked the central bank governor to come up with a plan or roadmap
with respect to weak and vulnerable banks,” Biti said. “I don’t know what
his recommendations would entail but I would imagine some of the small and
weak banks would be given a reprieve to meet their capital adequacy
requirements. Some might be asked to merge, while others could be given the
green light to look for partners,” he said.

“Our aim is to protect the financial sector and resultantly the economy,”
Biti said. “The governor has informed me that there are possible suitors in
the banking sector who are sniffing around for opportunities and we hope
this would come to fruition so that we can strengthen our banks ahead of the
deadline on capital requirements at the end of this month.”

Biti spoke as Gono placed ReNaissance under curatorship for six months. Gono
said the bank would today close its doors for two weeks to facilitate the
curator’s assumption of effective charge. The bank will then reopen on June
20 under the management of a curator.

A recent Reserve Bank investigation revealed a number of problems at
ReNaissance including poor capitalisation, inappropriate shareholding
structure, disintegration of corporate governance structures and internal
controls, systematic abuse of depositors’ funds, high levels of
non-performing insider and related-party exposures, chronic liquidity and
income-generation challenges, and gross violation of banking laws and
regulations — irregularities which bordered on criminality.

After recent reports that government wanted to bail out ReNaissance with a
US$20 million package from the National Social Security Authority, Biti said
government would not use public funds to rescue failed banks.

“We will not bail out failed banks,” he said. “That’s not our policy and in
any case we have no such money to do that. Even though I have the powers, I
will not direct huge insurance resources through prescribed asset measures
in terms of Section 26 (a) of the Insurance Act to save failed banking
institutions.

“However, we will always intervene to protect financial sector stability in
Zimbabwe using the law and market solutions. This is what we are doing at
ReNaissance and this is what we will do when faced with similar situations
regarding other banks in future. Even if some of our banks are experiencing
challenges, we still have sound banks which are well run in this country.”

Biti said ReNaissance bank crisis was “a manifestation of a breakdown in
corporate governance in some banks, greediness, inadequate regulation and
oversight, as well as a weak and uncoordinated legal framework”.

The minister insisted that his efforts with the central bank were directed
at “containing the multiplier and domino effect” which could result from the
ReNaissance crisis.

“We are faced with a sui generis (unique and extraordinary) situation which
needed a timely and careful intervention. A bank is not a tuck shop or
bottle store, it’s an institution with arteries in the financial sector
interconnected with the economy. It’s part of a financial network whose
tentacles run across the economy and therefore we have to be careful in how
we handled the situation,” Biti said. “Our aim is always to limit the domino
effect of failed banks.”

Succession issue: The elephant in the living room

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:46

Dumisani Muleya

PRESIDENT Robert Mugabe came to power in 1980 on the crest of a wave of
popular support after a dramatic armed liberation struggle. Thirty-one years
later he is clinging to power by his finger nails amid angry calls for him
to go and restless manoeuvres by his now impatient close courtiers ––
including the military — to succeed him.

What is happening in Zanu PF is a textbook example of the structural
weaknesses and faults of dictatorships; succession is always a problem. By
refusing to go and failing to resolve his succession crisis, Mugabe is now
jeopardising the nation’s security and welfare of its citizens. The
wellbeing of the country is at risk as Zanu PF heavyweights push and shove
in a bid to outmanoeuvre each other to grab power.

Mugabe’s succession has now taken a new twist with revelations that Zimbabwe
Defence Forces commander General Constantine Chiwenga may eventually throw
out his military garb, leave the barracks or Defence House and enter active
politics through the front door.

Latest information on the issue suggests Chiwenga is interested in
succeeding Mugabe if or when an opportune moment presents itself. This could
change the succession dynamics and possibly the outcome given the growing
influence of the military in Zanu PF and Zimbabwean politics. Reasons for
military intervention in African politics are as varied as they are complex.

Others who have been touted as potential successors to Mugabe include Joice
Mujuru, Emmerson Mnangagwa, Sydney Sekeramayi, and more remotely John Nkomo,
Simon Khaya Moyo, Gideon Gono and Saviour Kasukuwere. However, Chiwenga’s
mention has become a dramatic and stunning proposal in the growing list of
potential successors.

Behind the scenes these names have been discussed in various succession
permutations, including forming a Third Way movement which would incorporate
progressive elements from Zanu PF and the two MDC formations. Although it
was stillborn and has been shelved — at least for now — the option for some
remains on the table.

While all sorts of scenarios are being painted, it has always been feared
someone could emerge to take power, claiming that he expresses the will of
the people, pays whatever price is necessary to obtain the loyalty of the
security forces and sets about eliminating rivals –– and the whole nightmare
cycle of dictatorship will begin once more.

Mugabe took the helm in Zanu PF in 1977 after ousting founding party leader
Ndabaningi Sithole in a prison coup in the mid 1970s. He was helped in doing
so chiefly by Edgar Tekere, a former uneasy political bedfellow he dumped
once he was secure in power.

Throughout the intervening three decades in power beginning in 1980 and
despite his leadership and policy failures, Mugabe has done nothing to
create an institutional framework for a smooth, peaceful and democratic
transfer of power within Zanu PF and the state. Instead he has perpetuated
an authoritarian system, effectively running the country by administrative
fiat as if it were an army or a corporation.

Once ensconced in power, Mugabe never really offered Zimbabweans any
coherent and workable vision. He concentrated on consolidation of power to
fulfill his dream of becoming president for life. In the process, due to
misrule and economic mismanagement, as well as political repression, Mugabe
reduced Zimbabwe from a relatively prosperous African country to an
impoverished nation.

This fuelled opposition to his rule both from within Zanu PF and outside.
Now Mugabe is battling for political survival on several fronts –– the
biggest threat to him being the succession crisis which feeds into the other
challenges against him by his bitter external rival, Prime Minister and
MDC-T leader Morgan Tsvangirai and others.

The Mugabe succession race is full of twists and turns. At the beginning of
this past decade the succession line-up used to be a different cast.

Besides Mnangagwa and Sekeramayi, there used to be Edison Zvobgo, Simba
Makoni, Dumiso Dabengwa, Joseph Msika and Didymus Mutasa, among others.
Nathan Shamuyarira once mentioned in an interview all these names as those
of potential Mugabe successors, although Mutasa later publicly said his main
ambition was to become deputy president. Msika’s bid did not go far.

Zvobgo was eliminated from the race by his untimely death, while Makoni and
Dabengwa were frustrated after years of fighting it out from inside into
quitting in 2008. In 2007, Dabengwa and Makoni –– working with the Mujuru
faction –– even forced an extraordinary Zanu PF congress in a bid to oust
Mugabe. Mutasa has been reduced into a no-hoper by his lack of sound
strategy and tactics, although he remains at the top of the Zanu PF chain of
command.

The only ones currently remaining in the ring are Mnangagwa and Mujuru, a
surprising and very late candidate. Mujuru was brought in by a faction to
counter and manage Mnangagwa in 2004 after his attempt to overhaul the Zanu
PF pecking order backfired. Mugabe played a major role when he accused
Mnangagwa and his camp of plotting a palace coup against him.

Mugabe then in 2004 suggested Mujuru was going to succeed him. But later
Mujuru and Mugabe fell out, although the Mujuru faction still crushed the
Mnangagwa group in the run-up to the 2009 congress.

Nkomo and Khaya Moyo –– who are part of the Zanu PF presidium but always
long shots due to their lack of a strong power base and ethnicity - are
still hanging around in the contest. The Zanu PF succession battle is a
political and strategic contest with strong regional and ethnic undertones.

Gono has been weighed by some Zanu PF kingmakers in various scenarios,
including being a potential Third Way candidate beyond Mugabe. Now there is
talk of young turks like Kasukuwere sniffing around for a gap although
Chiwenga is seen as the main latest entry with enough fire power to force
his way in.

Prior to this the most powerful politicians around Mugabe in the early to
mid-1980s included Tekere, Enos Nkala and Morris Nyagumbo, among others, but
then succession was not an issue or was regarded as taboo.

However, the situation changed as time went on.

As Mugabe’s rule started faltering due to political repression and economic
failure, as well as external opposition, the volume of murmurs on succession
started to increase. Now it is almost full blast although the debate is
still not really welcome formally within Zanu PF structures.

There have been various formal attempts to address the issue but they all
turned out to be Mugabe’s smoke-and-mirrors attempts to manage the problem
which however is refusing to go away.

Zim not ready for elections

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:24

Paidamoyo Muzulu

FORMER Sadc executive secretary Prega Ramsamy said the regional bloc should
block holding of fresh elections in Zimbabwe until all necessary conditions
for holding of free and fair polls were in place.
Ramsamy made these remarks at an Institute for a Democratic Alternative
(Idasa) Zimbabwe seminar under the theme “Can Sadc avert a possible bloody
electoral process in Zimbabwe?” on Tuesday in Harare. The seminar was held
ahead of a Sadc meeting in Johannesburg next week to review progress on
implementation of the GPA.

Sadc, Ramsamy said, should be more serious about making the GPA work and
there should be no rush to push it through since it was best for thorough
debate of all issues before implementation.

“Sadc should ensure that there are necessary conditions in place before the
elections take place,” Ramsamy said. “These conditions may take time, but it
is far better to spend time in building a solid foundation rather than build
hastily on an unreliable foundation.”

Ramsamy’s comments are in sync with the negotiators and facilitators who
have ruled out the feasibility of holding elections in 2011 because of the
number of outstanding GPA issues.

President Robert Mugabe and his Zanu PF want all processes fast-tracked so
the country can hold elections before year-end.

Ramsamy questioned the logic behind holding early elections saying: “Why is
there so much rush for elections when the roadmap for elections is not even
ready and the budget for the electoral commission not yet fully secured.”

He argued that the coalition parties were failing to work together because
the GPA had become a battleground for control of the country’s future.

“This perhaps explains the reluctance of the parties to work as a team and
speak with one voice. There seems to be a fear that either of the two main
political rivals may attribute the success of the GPA to themselves and use
it for winning votes,” said Ramsamy.

Ramsamy said he was convinced that the new leadership in Sadc had opened a
new chapter in handling issues within the bloc, particularly taking into
account events in North Africa and some sections of the Middle East.

“It is obviously clear that Sadc is no longer in the mood of ‘solidarity at
any cost,” he said. “The emergence of new leaders has changed the political
architecture of the organisation. Sadc wants to pre-empt such a situation
and will do everything in its power to keep stability and peace in the
region.” Political analyst and academic Ibbo Mandaza agreed with Ramsamy
saying events on the ground had shifted and elections should be put on hold
until necessary reforms had been implemented.

“Let the people implement the reforms first,” he said. Let us build the
economy, consolidate convergence among the people, heal the wounds and
prepare for a post-Mugabe era. I agree with Jonathan Moyo that the elections
should be held in 2016,” Mandaza said.

Mandaza added that any elections held in a rush were likely to be
retrogressive and produce a contested result.

“Elections in the present circumstances will lead to another potential
second negotiated government of national unity,” Mandaza said.

Both Ramsamy and Mandaza were of the view that the Zimbabwe crisis had been
internationalised more than other worse cases in the region because of
foreign interests in the country’s resources.

“In the case of Zimbabwe, there are, of course, a lot of outside vested
interests which need to be managed by Sadc. This becomes more serious when
mineral resources come into play and investors are ready to put in their
funds to get these resources,” Ramsamy said.

Mandaza said: “Zimbabwe is the most internationalised country. We are not
the worst-case scenario. There are double standards in the international
community as they demand from Zimbabwe what they do not demand of other
countries.”

MDC-T ready for coalition against Zanu PF

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:23

Tendai Zhanje

MDC-T says it is ready to join forces with other political parties to end
the Zanu PF dictatorship.
Douglas Mwonzora, MDC-T spokesperson, said the idea of a coalition to fight
Zanu PF had been well received by the other opposition parties.

“We are willing to join with all those parties that want to progressively
work towards change,” said Mwonzora.  “Our position is that for meaningful
change to happen all progressive forces must unite to remove Zanu PF.”

He said the MDC-T and other parties had worked together before and they had
succeeded. He cited the recent re-election of Lovemore Moyo as parliamentary
Speaker.

“Modalities on how we work will differ from time to time.  It is just like
what happened when we approached Sadc, we were united.  But methods of
working will be looked at depending on what other parties think,” said
Mwonzora.

The fo of the MDC led by Arthur Mutambara said it welcomed the idea of
joining forces to remove Zanu PF although it emphasised that it would not do
so with anybody.

“It is a good proposal and we are willing to look at it and examine what it
means, but this does not mean to say we are prepared to enter into an
alliance with the devil,” said Maxwell Zimuto, the faction’s spokesman.

Mavambo-Kusile-Dawn led by former Finance minister Simba Makoni said it was
ready to co-operate with other genuinely democratic and patriotic national
organisations but not on the grounds of being against Mugabe.

“We are not motivated to be against, but to be for,” said party spokesman
Silver Bhebhe.

“So an arrangement predicated on being “against Mugabe” would not be well
grounded. In light of that, we believe that any coalition of opposition
forces must be based on values, principles and policies that must get
Zimbabwe working again.”

‘I wont go’ syndrome: The scourge of Zim politics

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:18

Wongai Zhangazha

POLITICAL leaders in developing countries have become notorious for
unilaterally extending their terms of office without a mandate from the
electorate.
Be it in Egypt, Libya, Cuba, Uganda or Harare, there is always the same
justification for hanging onto power.
Cuban nationalist Fidel Castro gave us an insight into the minds of
dictators when he made this pronouncement on October 28 1998: “I have just
one reason to be here at my age –– the sense of responsibility. The
beneficiary (from retirement) would be me. But while I still have physical
and mental energy to be useful, and they ask it of me, I will be there.”

However, due to ill health, he had to leave and replaced himself with his
brother Raúl Modesto Castro.

In the case of Zimbabwe, people are constantly reminded that President
Robert Mugabe will not step down because he has to see the successful
implementation of the so called “Third Chimurenga”  and the economic
empowerment programme.

Despite Zanu PF describing its chaotic and violent land reforms as a
“resounding success”, Mugabe still precariously hangs on to power.

The story changes with people sometimes being told that Mugabe would not
retire because he is the only one who can defend the country from threats of
neo-imperialist forces which are using puppet politicians to reverse the
gains of the liberation struggle.

Then we are also told that he would go if sanctions are removed and that he
doesn’t want to leave his party in disarray.

The Handiende (I won’t go) tune seems to have rubbed onto everyone in
leadership position in this country.

Today, Zimbabwe is littered with leaders who believe that they alone can
accomplish the objectives of their respective organisations.

Chief among them is Prime Minister Morgan Tsvangirai, who was elected
unopposed at the party’s national congress, thanks largely to a constitution
amendment extending his tenure to beyond 2011.

The MDC-T justified this authoritarian move by saying only Tsvangirai could
win an election against Mugabe.

Despite not contesting for the leadership of the MDC in February, Deputy
Prime Minister Arthur Mutambara has since refused to step down for new party
president Welshman Ncube, and has instead launched a fight to split the
party into two.

National Constitutional Assembly chairman Lovemore Madhuku recently said he
would extend his tenure because he still had a “flawed” constitution to
fight before leaving the group.

The most recent person to refuse passing on the baton is Zimbabwe Congress
of Trade Unions president Lovemore Matombo, who is seeking re-election
despite serving his mandatory two five-year terms.

The culture of refusal by incumbent leaders in varying sectors to leave when
their terms expire and concentrate on passing on knowledge and empower the
youths, and to lead and practise democracy based on national values seems to
be a difficult thing.

The Independent Dialogue held last week gave a reflection of how youths were
being blocked from ascending to power by certain leaders who cling onto
office.

MDC-N youth assembly secretary-general Discent Bajila said youths in
political institutions were fighting serious wars of what role they should
play.

“The national chairman of the youth assembly’s role has been reduced to
carrying benches to rallies and starting music before the elders come. Those
are some of the roles that the current leadership believes should be played
by the youths. It is then up to the youth leadership to decide whether this
whole thing should stay like that.

“That is why it is important to have a generational convention of young
people to map a way forward no matter their political affiliation,” he said.

“One of the most disastrous issues about the role of youth in developing in
Zimbabwe is that we have run out of local role models. If we have someone
who the youth look up to because we have leaders who say I can’t hand over
power because it is only me who can defeat sanctions; I can’t hand over
power because I need to remove Robert Mugabe; I can’t hand over power
because I need to craft Vision 2030; it is only I who can craft vision 2030
and no one else in Zimbabwe can do so. I can’t hand over power because I
need to oppose the flawed constitution and it is only me who can do that.”

Bajila asked what would have happened if former US President George Bush had
refused to leave before finding Osama bin Laden and bringing him to justice.
Student Solidarity Trust co-ordinator Masimba Nyamanhindi said leaders of
different establishments were not grooming young people for leadership
roles.

“Do you belong to an establishment that shows signposts that say today you
are a youth leader of Zimbabwe but tomorrow you are going to be a leader of
that establishment or political party.”

However, some social analysts believe that it would be difficult for youth
movements in the country to make it up there due to the challenge of a
repressive state that refuses them the right of association as well as
academic and intellectual freedom.

Social commentator Ernest Mudzengi said the lack of leadership renewal was a
cultural problem that had been adopted from Zanu PF and left the youths with
no role models.

“One problem that they may not be consciously seeing is the continuation of
a culture within. A culture whose superstructure is Zanu PF. The youths have
nothing to emulate from people who cling to power,” Mudzengi said.

He said the issue is related to the overall cultural framework in terms of
the way the country’s politics has been run.

“For years youths have not been given space to articulate independently
their issues as vibrant as possible. They are just used as followers rather
than leaders as compared to South Africa and other countries that are
progressing.”

However, others argue that the youths of today are “too inundated with
materialistic impressions of what it means to live a good life that most of
the time they have adopted a very individualistic approach to existence
which compromises any sense of collective unity in confronting the
challenges they face”.

“Where youths are still involved in political activity it tends more to be
on a partisan basis and under the heavy tutelage of political party
mainstream leaders who deliberately suppress their engagement and critique
of their respective party ideas.”

Farmlands: A pale shadow of yesteryear glory

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:16

Paidamoyo Muzulu

DRIVERS along the Harare-Kariba highway used to see swathes of tilled
farmland at any given time of the year. In this cold season, large portions
of the rich farmland were enveloped by the green germinating winter wheat
crop. The beautiful colours of the rainbow were an integral part of the
skyline due to overhead sprinklers and centre pivots irrigating the fields.

Then, Mashonaland West province enjoyed the unrivalled position of being the
country’s breadbasket. Its fertile red soils and warm temperatures created a
climate for agricultural production right throughout the year.

Pre and post-Independence investment in irrigation infrastructure was
intensive in the province. This came as no surprise because of the location
of large bodies of water, such as Darwendale, Mazvikadei, Mutorashanga, Biri
and Susuji dams. These dams had a combined capacity to irrigate over 50
000ha of land.

All this potential has been laid to waste. As I travelled through this once
lush agricultural province last week, I came face-to-face with the sad
reality of how desolate this fertile farmland has become.

Winter wheat production is on a dramatic downward spiral despite most dams
in the province being 70% full. This year Zimbabwe has to import wheat.
As I gazed at the vast agricultural wasteland, all I could see were
vandalised centre pivots, derelict canals and dysfunctional irrigation pump
stations on the farms along the busy highway.

The abandoned infrastructure tells a story of the copious production days
when small towns like Banket, Raffingora, Chinhoyi, Mhangura, Lion’s Den and
Chegutu were widely renowned agricultural centres. Now, the towns’ silos
echo with emptiness confirming the gloomy outlook of Zimbabwe’s agricultural
sector.

Farmers and farm-workers have different reasons for plummeting agricultural
production. Some point to wanton destruction of irrigation infrastructure at
the height of farm invasions at the turn of the millennium while others
blamed the lack of financial support for “new” farmers, most of who have no
capacity to till the land they so zealously and violently grabbed in the
name of land reforms.

Some farm workers told sad stories of absent farm owners and unpaid wages.
They said the “new” farmers kept telling them that they were waiting for
government assistance. Farm workers’ misery and their wretched rag-tag
appearance reflect a gloomy future.

All this paints a sad picture of declining agricultural production and
further dependency on food aid and imports. This is an indictment on the
country’s decade-long agrarian reforms.

The government has on several occasions spoken of the need to increase
funding for agricultural production. Finance minister Tendai Biti bemoaned
the lack of resources to rehabilitate irrigation infrastructure in his 2011
budget statement.

“Lack of fiscal space has limited our capacity to intervene meaningfully
towards supporting our farmers to take advantage of our water bodies through
irrigation development,” Biti said.

Biti further highlighted that wheat production had been declining over the
years. He revealed that the 2010 production target was missed by a wide
margin due to wide-ranging factors, among them limited funding and erratic
power supplies.

“Out of the targeted hectarage of 45 000ha, farmers only managed to put in
12 000ha using inputs worth US$5 million,” Biti said. “We anticipate wheat
deliveries to GMB amounting to 25 000 tonnes assuming an average yield of
2,5 tonnes a hectare.”

The irrigation problems are reflected across all the other provinces.
Masvingo province still underutilises Lake Mutirikwi. There is no meaningful
winter wheat production in the region.

The Nuanetsi project which was expected to put 500 000 ha under production
died a natural death due to lack of funding.
Mashonaland Central is also struggling to regain its production levels of
yesteryear. The majestic Mazowe Dam provides a capacity to spur further
production but farmers are highly incapacitated.

The country’s spectacular fall from being the region’s breadbasket to a
basket case is a cause for concern. To try and mitigate against further
decline in production, the government has concocted a number of solutions
that must be implemented immediately.

These range from seeking new lines of credit for farmers, providing
uninterrupted power supplies to irrigation farmers, an intensive land audit
and tough legislation against vandalism of water and power infrastructure.

While all these solutions are being implemented, the country faces another
year of wheat importation. Bread may become a luxury to most poor families
in a dollarised economy with less government subsidies for manufacturers.

‘Tsvangirai is not the right candidate’

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:07

AS the country prepares for elections expected after the constitution-making
process, the Zimbabwe Independent political editor Faith Zaba (FZ) last
Thursday spoke to the commander of 3 Infantry Brigade in Manicaland,
Brigadier-General Douglas Nyikayaramba (DN) in Harare on various issues,
which included security sector reforms, elections, militarisation of the
countryside, the constitution-making process, violence and intimidation.
Below are some excerpts.
FZ:  I am sure you have read reports about the army’s involvement in
politics — one such case is that of Zanu PF working with army officers —
code-named boys on leave — to renew the party structures. Your name has been
singled out as one of the generals heading an operation to ensure Zanu PF’s
victory. What do you say to that?

DN: I have read about it and also heard about it and the conclusion that I
have come up with is that there is gross misunderstanding of the role of the
military by our public in this country. Personally, I had been in charge of
army administration for four and a half years and on average we have been
having 1 000 soldiers retiring almost every year. Where do those people go?
They find their way into the resettlement areas, to the villages and some
are already headmen, some are chiefs because they have been integrated into
society. So the notion of the “boys on leave” that is being propagated by
the independent media, especially you (the Independent), is a total
fabrication of the truth on the ground.
Secondly, the military is organised into brigades and they have areas of
responsibility. I cite Manicaland where I am, I have a battalion in Rusape,
I have a battalion in Chipinge, another in Mutare and I also have units in
Nyanga. What do you do during peace times? You just don’t sit in the
barracks during peace time. This is the period that we use to carry out
intensive training programmes in preparation for any possible conflict that
might arise. We do them in the rural areas, if there are no commercial farms
nearby and no designated ground. This can be patrols, ambushes and map
reading. We don’t disclose our operations on the ground and if (people) see
soldiers moving around they think we are up to something else. So we need to
improve our public relations, our understanding of the military activities
and the role of the military and what it does in a peaceful environment. If
people understand that, I don’t think we will have any problems.
When they (public) see these soldiers moving around they think that they are
going around intimidating people, harassing people. We are a people’s army,
we understand what the people’s army is all about — it is to protect our
people, to protect our public. It is only those people who are anti-the
defence forces who feel threatened. I don’t know why they are anti it
because they have ulterior motives, they are enemies of peace and
stability — obviously if you are an enemy of peace and stability, and you
get your appropriate medicine.

FZ: There was a time when I went to Mashonaland West during the constitution
outreach period and villagers there told me that they were addressed by
soldiers before the consultation meetings?

DN: Were they in uniform?

FZ: According to the villagers, yes they were in uniform.

DN: That has never happened. Soldiers can only address the public in uniform
when they are talking about security awareness. They can also do that when
they do career guidance in schools and not at any other occasion.

FZ: I am sure you have heard about state-sanctioned violence, where the
military, police and Central Intelligence Organisation are cited as
perpetrators of violence against parties opposed to Zanu PF. What is your
comment on that?

DN:  That is not true. It is just fiction, some people’s imagination. Just
because there is unity between the army, the police and the CIO, they think
that our role is to perpetrate violence. Our role is to ensure that there is
peace and stability, to ensure that there is a conducive environment for
economic activity to take place. We want to propel economic development and
that can only happen when there is peace and stability and our role is to
ensure that any elements that contribute to insecurity in the country are
taken care of.

FZ:  What about the issue of security sector reforms which the two MDCs are
pushing for?

DN: People should go to the libraries and do a research and come up with the
proper acronyms of what exactly they want to talk about. In the first place,
I joined the liberation struggle when I was 14-years-old, straight from
school. I grew up in the struggle and this was as a result of our political
parties having failed to achieve political independence through negotiations
and they realised that the only way, the only language that the white men
would be able to understand was the barrel of the gun and then you saw the
creation of a military wing of the political party, Zanla, for example, in
my case.
There is that very close connection between Zanu PF and Zanla and you cannot
afford to separate me from that. Truly speaking, I am in Zanu PF and Zanu PF
is in me and you can’t separate that. Now we are a creation of that
political party. When you talk about security sector reforms, what are you
talking about?  In 1980, we were integrated and that was a transformation in
itself, transforming from a guerilla organisation into a professional army.
As we speak in terms of the training standards, we are the highest trained
military personnel on the continent of Africa, if not in the world. We are
even over-trained for our roles. So what transformation are we talking
about, what re-orientation are we talking about?

FZ:  They say you should not state publicly which party you belong to?

DN:  Now if I go and vote, I vote for what? Everybody in this country is
entitled to vote. Even in America, the Republicans know that their soldiers
are with the Republicans, and in Britain they support the Conservatives. It
is not something that is new in this country because we are a people with a
history.  We went to war to unshackle the chains of slavery in this country.
We want to ensure that what we gained from the liberation struggle is
protected and if we are still there we have to ensure that you identify
yourself with that revolutionary party that brought about Independence and
in any case we should not have been demobilised in terms of our thinking in
1980 when we demobilised our soldiers. We should not have demobilised our
parties into a government. We should have remained a movement until our
gains of the struggle are all achieved in terms of economic, social
independence and everything else. In 1980, we only got political
Independence, not economic, not social.  We are still in a struggle and we
still remain relevant to ensure that what we fought for is retained and
maintained.
Do you know that the threats you get when you get independent in almost all
countries is neo-colonialism and these come in different facets and that is
what you have to be on guard. You have to be alert and this is not the time
for anybody who did not fight during the liberation struggle to run this
country, otherwise we will be taking the country back to where it was.
They don’t understand the value of the struggle, it will be very dangerous.
But once we have common rallying points as a nation, we all agree on where
we are coming from, we all agree we are all blacks, we all agree that
Zimbabwe is ours, resources are all ours, we have rallying points, we then
can begin to entrust others with the superintending of this country.  It
will be safe — it is not an easy process. We have to inculcate. If we
procrastinate developing syllabuses in our schools, then we have got a
problem. The role is for those in the academia and in the Ministry of
Education to take an active part so that we develop relevant curricular that
is able to develop that nationhood amongst our people.

FZ: We have elections coming, so what happens if a person without war
credentials wins?

DN:  Well I don’t see such a thing happening. It is very irrelevant from the
factors we see. As students of contemporary history like some of us and
analysts in terms of military security environment, we do scan the
environment and there is no such a possibility, it’s a dream.

FZ:  But anything is possible, you cannot be so sure?

DN: I will resign.

FZ: But why are you so sure?

DN: I am sure because I have studied the terrain and I know for sure it is
not possible. I will tell you one thing, in Manicaland for example, it did
not mean that Zanu PF did not have support. The people in Manicaland were
having a protest vote on the imposition of candidates. If they had not
imposed people who were not wanted by the people, MDC would not have won in
Manicaland. They would have taken one or two seats. This time round, if Zanu
PF, for example, learns something from that they will romp to victory
without any problems. You can do the same in Masvingo, it was a protest vote
as well.  You look at the bunch of MDC people who won the elections, they
were not the rightful candidates, ana hwindi (touts). Do you think this
country can be run by ana hwindi (touts)? Each and every one of us has his
strong points and weak points and we must be able to fit a square peg in a
square hole, ok. If you are going to have an election, those people will not
win because they were not the right candidates, the right material.  This is
why a lot of these supposed organisations don’t want elections and yet the
GPA says two years. In our case we need elections like yesterday because it
has created a lot of challenges in the military. We are not getting enough
medicines from the inclusive government, maybe they want the soldiers to
mutiny, they are not having enough money for rations, enough money for
uniforms and so forth and it has all to do with this inclusive government
whose priorities are lopsided. They don’t understand the strategic benefits
and importance of having a robust defensive and credible system. We would
rather have one government. In any case, in all countries that have
coalition governments that country is weak in terms of its defence because
there is no synergy in terms of what you need as a country, so you need one
government that is responsible in terms of managing the defence forces and
not to have disagreements everyday.

FZ: But will you allow him (MDC-T leader Morgan Tsvangirai) to rule?

DN: Look, what I am saying is that that question is irrelevant because that
situation will never arise and everyone, including yourself, I am sure have
awakened to the reality that he is not the right candidate.

FZ: But it can happen, never say never and you said Zanu PF’s victory will
also depend on whether they impose candidates or not and you also said that
if anything Zanu PF should learn, but look at what happened with the Speaker’s
position where the politburo chose to impose a candidate.

DN: The bottom line is that I will not salute someone like that personally.
I will resign if the political establishment accepts it. If they accept it
fair and fine. It’s not in me, principle is indivisible either yes or no.

FZ: Is it just because he didn’t participate in the liberation struggle?

DN: I am not a hypocrite. I will stand by what I have said. What I know is
best, what I know is principled. We lost a lot of comrades because of some
of these people when they turned against the liberation struggle and for me
to wake up and say good morning sir, me, no, no, no.

FZ: What is your comment on calls for the president (Robert Mugabe) to
retire now?

DN:  I don’t want to comment on that because these are purely political
issues and I don’t want to comment.

FZ: But in the past you have spoken about him being a revolutionary…

DN:  He is the leader of our revolutionary struggle and the struggle is
still on. Why would you want him to leave when the struggle is still on? We
went to war to fight for the land inequality in this country, we are in a
land revolutionary struggle. It is just being finalised and when the
struggle is finished and he is just happy that the struggle is through and
we are entertaining a new dispensation — fine he will make an informed
choice and an informed decision.  Why do you want to force him to go? Where
were you when he crossed into Mozambique and why didn’t you go? Anamucheka
dzafa (Reaping were others have toiled) where were you? Come on!

FZ: They are talking about leadership renewal now that he is old.

DN: We want our leader, if you can change your father in your family, then
we can do the same, has anyone ever changed his or her father just because
he is old — until he dies then you can have a step father, so isn’t it —
that is what you need.

FZ:  But if you look at the succession issue which Zanu PF is not dealing
with, which has a potential to cause instability, there are concerns which
have been raised; what if anything happens. As the military, I am sure the
issue of peace and stability also concerns you?

DN: I don’t see any challenges, it is in the constitution. the provisions
are there.  That an electoral college will sit and elect a president for a
period of time and then you will go for an election. So what is your
concern?

FZ: But the fight will start in Zanu PF itself, they might start fighting
amongst themselves — here we are talking about the country’s stability?

DN: Well, I don’t think that is a subject I can deal with you because I have
my own ways and some of it might be classified and I can’t discuss that with
you. But I don’t see any problems myself. Not in Zimbabwe, that will not
happen, the country is safe under the stewardship of President Robert
Mugabe.
FZ: But what of if the president is no longer there?

DN: The country is safe because there are cadres of the revolution who
understand where we are coming from and where we are going. The country is
safe, don’t worry.

‘We would accept a Zanu PF victory if...’

http://www.theindependent.co.zw/

Thursday, 02 June 2011 20:01

THE German Ambassador to Zimbabwe, Albrecht Conze (AC), will leave the
country next Thursday at the end of his three-year tour of duty. During his
stint, he once headed the Fishmongers Group, an informal group of
ambassadors and heads of cooperation agencies of the 11 most important
likeminded donors, which periodically meet to assess the political and
economic situation in Zimbabwe. The Zimbabwe Independent editor, Constantine
Chimakure (CC), last Friday had a chat with Conze at his Avondale office in
the capital on the political situation in Zimbabwe and other issues. Below
are some excerpts.

CC: Your country is accused by President Robert Mugabe of being in the
forefront of imposing debilitating economic sanctions against Zimbabwe. What
is your take on the accusations?

AC: Apart from a travel ban for just over 160 persons, a freeze of assets,
and a ban on dealing with arms, there are no European sanctions. The myth of
the so-called crippling sanctions is nothing more than a propaganda bluff. A
country does not suffer because some of its citizens are unable to travel to
a number of other countries. Zimbabwe has just had two years of economic
growth since the end of hyperinflation, with more to come this year. How
could that be possible if there were economic sanctions in place? It is true
that access to international credit lines is difficult, the reason being
that the country has defaulted on its foreign debt long ago. Germany, and
the EU as a whole are committed to assisting the Zimbabwean government in
achieving debt relief as soon as possible, via HIPC status — a road that has
been successfully taken by many other heavily indebted countries over the
past years. I have already mentioned the main fields of recent German
re-engagement in Zimbabwe. Europe is assisting this country more than anyone
else in the world, not sanctioning it.

CC: When can we expect your country and the EU to lift sanctions against
Zimbabwe? What are the benchmarks Zimbabwe should meet before the sanctions
are lifted?

AC: The restrictive measures against a number of Zimbabweans are under
constant review. Over 30 persons have been delisted in February. All EU
countries would prefer to get rid of these measures sooner rather than
later, but — to quote Ronald Reagan — it takes two to tango.
These measures were imposed for a reason. Once this reason is gone, the
measures will go.
There are no benchmarks. But there is a clear understanding that the EU is
in full support of current efforts of the facilitator, and of Sadc as a
whole, to make sure that Zimbabweans will be able to go through the agreed
further phases of the current political transition without fear and
violence, in order to find their place in the ever growing community of
African countries committed to democracy and the rule of law. In short,
agreement on a well drafted and robust roadmap to elections would greatly
help Europe to reconsider its current position.

CC: Is your country pushing for regime change – the removal of Mugabe and
his Zanu PF party?

AC: It is not. Germany does not interfere in other countries’ internal
affairs. My country supports progressive ideas in Africa. We stand by this
great continent as it attempts to find its place in the world of 2011 where
dictators are on their way out, and nations are free to determine their
fate. The tide was in favour of freedom in Europe when the Berlin wall came
down in 1989. Today the tide is in favour of more freedom and better
governance all over Africa. The people will decide on the pace of reform,
and on the type of society which suits them best. Leaders who are unable or
unwilling to hear their voice are unlikely to last long.
If Zanu PF were to win a truly free and fair election, we would of course
recognise the result and work with the elected government. It’s up to the
people of Zimbabwe, and to nobody else.

CC: A cable released by WikiLeaks suggests that you met the US Ambassador,
Charles Ray, on December 1 2009 at your embassy and suggested that China
should be roped in to deal with the Zimbabwe crisis. Why China?

AC: I will not comment on anything published by WikiLeaks. On substance, I
believe that all decent friends and partners of Zimbabwe share a
responsibility to stand by the Zimbabwean people, in as much as their advice
and support is requested. Major powers have major responsibilities in
international relations. Recent events in North Africa have demonstrated
this to all of us. Having served in China for four years and in various
African countries for seven, I am fully aware of the close relations between
Africa and Asia. It is my sincere hope that on both continents it is
understood by the ruling elites that full mutual respect is observed at all
times. It took Europeans a long time to acknowledge that all nations are
equal, and that exploitation is unfair. Wouldn’t it be unfortunate if others
now repeated their mistakes?

CC: Can Zimbabwe experience an uprising as we witnessed in North Africa?

AC: The people of Zimbabwe are known all over Africa for being of exemplary
patience. In almost three years, I have not managed to figure out where this
patience would find its limits.

CC: The WikiLeaks cable claimed you were also pushing for security sector
reforms. Why do you think it’s possible given that Mugabe feels the security
organs of the country are professionals?

AC: As long as the armed forces and the police are serving the people, no
reform is needed. But once they are ordered to behave in a partial way, and
point their guns at unarmed citizens exercising their fundamental rights,
something is fundamentally wrong. I am sorry to say that I have seen such a
show of force on the streets of Harare, very recently. This is not in
Zimbabwe’s traditions, and should not happen again.

CC: What is the role of the Fishmongers you headed in the Zimbabwe crisis?

AC: The ambassadors and heads of cooperation agencies of the 11 most
important likeminded donors meet regularly as an informal group in order to
assess the political and economic situation in Zimbabwe. Twice per year they
prepare and organise the “Friends of Zimbabwe” meetings where progress is
being monitored and an exchange of views takes place with representatives
from capitals, the global financial institutions and the UN agencies active
in Zimbabwe. Donor coordination is a must in all countries which receive
foreign aid, and in Harare it works particularly well.

CC: Is Germany and other EU members working with Sadc to force Mugabe to
quit?

AC: You have already asked this question with regard to an alleged regime
change agenda of my country. The answer is still no. As far as Sadc is
concerned, the EU is working closer with the region today than when Thabo
Mbeki was president of South Africa. We find ourselves pursuing parallel
objectives when we look at the stance taken by Sadc in Livingstone. We think
along similar lines. It seems there is now a clear commitment of Sadc
countries to insist on an orderly transitional process in Zimbabwe based on
a robust roadmap to free and fair elections. This attitude is in line with
Europe’s own ideas and principles, which we do not only apply to Zimbabwe,
but all over the world.

CC: Are you going to bid Mugabe farewell?

AC: I have asked for an audience with the President, and I am waiting for
the reply.

CC: In the event you meet him, what will you say to him?

AC: I will relate to him my admiration for the Zimbabwean people. He can be
proud of his nation.

CC: What were your highs and lows in Zimbabwe?

AC: I had a most fascinating time in your country. In retrospect it seems a
bit like a rollercoaster ride. I arrived in October 2008, at Zimbabwe’s
darkest hour. Harare seemed to be a dead city, with nobody on the streets
apart from sinister moneychangers and desperate people queuing in front of
banks for worthless banknotes. It was depressing, but it didn’t last long.
The inclusive government came into being, and dollarisation brought relief,
to more and more people. I remember the tremendous optimism two years ago.
But then came a number of setbacks, with Jestina Mukoko being abducted, and
Roy Bennett first in jail and then in court with trumped up charges.
However, previous professional experience had taught me that transitional
governments have a tendency to come close to breakdown every now and then,
and that one should never despair in those moments, but rather stick to the
scenario which the opposing camps have worked out themselves — in Zimbabwe’s
case the GPA. There were some good news coming, with tobacco harvests
improving, independent daily newspapers hitting the streets, and the country
gradually moving back towards the African mainstream, with renewed economic
growth and the return of foreign investors. I went at great lengths to
explain to the German business community the opportunities for
re-engagement, and I found a lot of serious interest back home. But what can
you do when, with unfortunate racist undertones, an inexperienced minister
who obviously has no deeper knowledge of economics takes pleasure in chasing
away foreign capital at a moment when it is most needed? So to sum up what
your question was all about: yes, many ups and downs, and a lot of surprises
on the road. I have not had a single boring day in Zimbabwe.
CC: What level of support did your government give to Zimbabwe during your
stint in Harare?

AC: During the 2008 crisis Germany had focused on humanitarian help only —
everything else seemed secondary. But as soon as the new government,
legitimated through the GPA, took office, Berlin decided to seriously
increase its support. So did most of the other longstanding Western friends
and partners. We focused on the rehabilitation of water supply and sewage
systems, on the revival of small-scale agriculture in Masvingo and
Manicaland, and on school books for the children of Zimbabwe. I am proud
that Germany became the largest contributor to the Education Trust Fund
administered by Unicef which is distributing these books. Furthermore, my
government kept pushing for the launch of the Multi Donor Trust Fund
dedicated to large-scale enhancement of infrastructure. The ZimFund, as it
is now called, has recently become operational, and is administered by the
African Development Bank. The largest chunk of the US$65 million currently
being allocated to water and energy generating programmes comes from Berlin.

CC: How many citizens from your country were affected by the controversial
land reform?

AC: I know of 25 Germans who used to farm or manage wildlife in Zimbabwe
before 2000, most of them with considerable success, and employing thousands
of Zimbabweans. Only five of those farmers are still around. The previous
Zimbabwean government did not fully respect its obligations under
international law and frequently failed to protect German property against
invasions. The present government keeps assuring me that the Bippa
provisions will be respected. However, local initiatives of certain groups
who still believe that they can get something for nothing, continue to make
life difficult for the few remaining German investors. I had to spend a lot
of my time and energy in continuous attempts to make sure that these
infractions were controlled by the central government. A rather tedious
fight which, unfortunately, is not over yet.

CC: From Zimbabwe, where are you heading?

AC: I was offered a sabbatical at Harvard University, starting in August. It
is a great privilege indeed to be able at my age to once again read, listen,
learn, discuss and write in the highly stimulating surroundings of one of
our world’s leading universities. I intend to focus on issues of Africa’s
future. My last seven years of service in the DRC, West Africa and now
Zimbabwe have left me with a host of questions which are not easy to answer.
But there is one thing I am convinced about already today: the upcoming
generations of bright and ambitious young Africans are going to change this
continent profoundly –– and probably much faster than we think today.

Politburo still immersed in yesteryear hangover

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:35

Brian Chitemba

THE once powerful Zanu PF politburo has now been reduced to a mere shadow of
its former self since it can no longer make arbitrary decisions that impact
the national discourse as was its custom in yesteryear because of the
formation of the country’s coalition government which has drastically
altered the political landscape.
A hawkish clique behind President Robert Mugabe’s continued presidency
recently resolved to force the country into elections this year with or
without the implementation of critical electoral reforms as required by the
GPA. A few weeks ago the Zanu PF politburo raised daggers against its chief
negotiator Patrick Chinamasa for publicly admitting that polls were not
possible this year.
But the question remains; does the Soviet-style politburo still wield as
much power and influence over national affairs as it used to when Zimbabwe
was literally under the shackles of a one party state?
Public administration expert Qubani Moyo said the formation of the inclusive
government two years ago had brought to a dramatic halt the Zanu PF
politburo’s rampant monopoly over all government decisions.
Before the establishment of the coalition government between Zanu PF and the
MDC formations, the politburo was notorious for usurping cabinet powers by
crafting policies which were automatically adopted by cabinet.
Moyo said Mugabe’s top officials were still engrossed in a yesteryear
hangover during which they enjoyed dragooning party positions to become
government policy.
After its monthly meeting last month, the politburo insisted that the party’s
Mutare conference resolutions calling for the holding of elections this year
still stood.
However, Moyo warned that Zanu PF needed to wake up to the reality that it
could no longer make crucial national decisions on its own without input
from the government’s other coalition partners.
“Zanu PF must understand that it was defeated in the 2008 elections and it
doesn’t have the majority and can therefore not inform policies alone,” said
Moyo. “The politburo can scream as much as it wants but nothing will change.
The danger is that they are still living in the past.”
Sadc-appointed facilitator and South African President Jacob Zuma’s team
leader Lindiwe Zulu has repeatedly dismissed calls for polls this year as a
mere political gimmick.
Moyo said the split by politburo members over when elections should be held
demonstrated that the former liberation movement was losing cohesion.
The securocrats, Moyo said, were behind the politburo and they would
continue using violent tactics to intimidate political foes. The security
chiefs are the foundation of Mugabe’s power base and they are reluctant to
let the veteran leader retire for fear of prosecution for crimes against
humanity and murder of political opponents.
National Association of Non--
Governmental Organisations secre-tary-general Godwill Phiri rubbished the
politburo’s parrot calls for elections before year-end as taking Zimbabweans
for granted.
“We should make sure these people don’t prevail. Their evil intentions of
trying to speak for the government when they are a political party must be
thwarted viciously,” said Phiri.
Phiri said the politburo was just a mere Zanu PF structure which does not
reflect the thinking of the inclusive government.
He said although Mugabe seemed to be enjoying more power in the coalition
government than Prime Minister Morgan Tsvangirai, the GNU had effectively
tamed the politburo’s former role of making government decisions.
“The politburo doesn’t bind anyone. It’s just a party organ and doesn’t
speak for the government,” said Phiri.
On polls, Phiri said civil society was clear that the plebiscite should
either be held next year or in 2013 after full implementation of
constitutional and electoral reforms to plug Mugabe’s election rigging
machinery.
“The politburo should know that in the absence of reforms, elections are not
possible.”
Politburo members are randomly handpicked by Mugabe and the octogenarian
usually intimidates them to support his personal decisions. Zanu PF insiders
say no one challenges Mugabe’s decision on anything in politburo meetings.
Bulawayo-based analyst Dumisani Nkomo said Mugabe needed to draw a line
between his politburo and government positions.
“The politburo should not make pronouncements on government issues. They can
only state the party’ position like any other party organ,” said Nkomo.
The tripartite coalition cabinet reports to Sadc, which is the guarantor of
the GPA, and this arrangement has further eroded the unchecked power and
influence the Zanu PF politburo once wielded.
The only uncontested influence Mugabe and his cabal have retained in the
politburo is that of declaring heroes to be interred at the national shrine.
Mugabe has repeatedly declared that the National Heroes’ Acre was only for
party members who participated in the liberation struggle and remained loyal
to him.
As a result, families of former associates who fell out of favour with the
aging leader have snubbed the national shrine.
The family of former Matabeleland North governor Welshman Mabhena rubbished
a politburo decision to bury him at the Heroes’ Acre by turning down the
organ’s conferment of a national hero status on him.

Zesa in power purchase agreement

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:30

ETHANOL fuel company, Green Fuel, is on the verge of concluding a power
purchase agreement with Zesa which will see 18,5 megawatts of electricity,
enough to power the entire Manicaland province, being fed into the national
grid from the company’s ethanol plant in Chisumbanje.
The agreement represents the first major private sector power injection into
the national grid. Green Fuel is the first large-scale ethanol producing
factory in Africa and the plant itself is new technology within Zimbabwe.
The electricity generation is a by-product of Green Fuel’s core business,
which is the production of ethanol fuel from sugar cane.  The Chisumbanje
plant puts Zimbabwe at the forefront of renewable fuel on the African
continent.
Green Fuel General manager Graeme Smith revealed that the power feed is
pencilled for commencement this winter, with an initial offload of 18,5
megawatts from the first ethanol plant at Chisumbanje, to be commissioned
soon. The electricity will be generated from bagasse, a by-product of
ethanol production, in a way similar to how coal-fired electricity is
generated. Bagasse is the fibre left over after the juice has been squeezed
out of sugarcane stalks.
The bagasse from cane at Chisumbanje will be fed into the boiler to burn and
generate electricity in sufficient quantities to power Green Fuel’s ethanol
plant with the excess then being fed into the Zesa power distribution
system.
“We are hoping to start the power feed this July with an output of 18,5
megawatts after the commissioning of our ethanol plant. We are also
concluding  power purchase arrangements with Zesa for three of these bagasse
fuelled power plants in the next phase of our ethanol project –– two at
Chisumbanje and one at Middle Sabi –– bigger in capacity, each with an
output of 35 megawatts, to put our total power offload into Zesa at 120
megawatts,” Smith said.
“Further to this, our associate company, Boabab Energy, is set to put up
between five and 10 of these power stations –– to be coal fired.  We have
built one power station already at Chisumbanje, and managed to build the
components locally –– we are therefore confident of a successful rollout
programme for these coal-fuelled power stations throughout other parts of
the country where we have coal deposits,” Smith added.
For the past 18 months, 800 Green Fuel technicians have been working around
the clock in the construction phase of the plant to ensure that it will be
operating by this winter, ready to start processing over 5 000 hectares of
sugarcane into high quality anhydrous ethanol.
There are three phases to the current Ethanol plant
and three phases to the overall project development, being the construction
of three Ethanol Plants. The current
phase of the first plant will require 11 500ha and will produce 350 000
litres a day of ethanol for 300 days, which equates to just over a 100
million litres annually. Phase two will progress to 150 million litres a
year and 250 million litres in phase three.
The backbone of the whole project lies in vast swathes of cane grown on
Chisumbanje and Middle Sabi estates, ahead of the plant commissioning this
year. A total 5 000ha of sugar cane have been planted to date at Chisumbanje
and Middle Sabi.
Sugar cane ethanol is a success story in many countries worldwide — from the
US and Brazil to Europe, China and the Far East — and is considered to be
the fuel of the future.  Worldwide ethanol production in 2009 reached over
75 billion litres, representing a 64% increase in two years.
The production and use of ethanol benefits the economy on many levels from
job creation and employment in agriculture and technology, to the
availability of clean, renewable, affordable fuel at the pump.

Banks hit back

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:27

Tatenda Macheka

TN Financial Holdings CEO Tawanda Nyambirai has slated Finance Minister
Tendai Biti for alleging that banks steal depositors’ money and fail to
supervise themselves.
Speaking to businessdigest on the sidelines of the Zimbabwe National Chamber
of Commerce awards ceremony, Nyambirai said Biti was destroying the
confidence that bankers had worked so hard to build since the economy was
dollarised.
“Why does the Minister have to destroy the confidence that we have built for
such a long time overnight?” he questioned.
“We worked hard to build this public confidence and it is not true that we
(bankers) steal people’s money.  We need that confidence and people have no
other alternative to get the cash except from the same banks that are being
accused of stealing the people’s money,” said Nyambirai.
However, Biti told businessdigest this week that his ministry’s first
priority was to protect the depositors’ money at any cost.
“We as the Ministry of Finance and RBZ are there to protect and regulate the
depositors’ money above everything and we want them to have that confidence
that their money is safe ,” Biti said.
Biti said when he mooted a Public Finance Management Bill, which has now
been passed, he sought to revolutionise how public funds are monitored and
audited in line ministries and this will expose every foul play by some of
the banks who want to misuse public funds. Biti accused bankers of “stealing
depositors’ money” and subsequently blaming government and the Reserve Bank
for implementing policies they allege were not conducive for the banking
sector to operate viably when he was officially opening the 38th African
Insurance Organisation last week.
Bankers’ Association of Zimbabwe president John Mushayavanhu this week
however said banks had so far done well in managing their own balances and
supervising themselves.
“We have been keeping our lending deposit ratios low to manage liquidity
pressure and to say we have been stealing depositors’ money? That is not
what is happening,” said Mushayavanhu.
In his update on Zimbabwe’s economic performance for the first quarter of
this year, Biti revealed that about 34% of bank loans had not been repaid.
He expressed concern at the high loan-to-deposit ratio which stood at 76%
and feared that the sector faced a loan default risk.
In January, bank deposits stood at $2,36 billion, increased to $2,4 billion
in February and ended the first quarter in March at $2,57 billion. On the
other hand, loans increased from $1,81 billion in January to $1,88 billion
in February and then to $1,99 billion, representing a loan-deposit ratio of
77,3%.

‘Govt, industry dialogue key to mining sector growth’

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:22

Paul Nyakazeya

DESPITE being endowed with a fair share of the world’s mineral resources,
Zimbabwe has not always been top of the list as an investment destination
for mining companies. This is owing to its unattractive business environment
as a result of poor governance.  This is also coupled with inadequate
infrastructure, government’s failure to listen to miners’ suggestions and of
late, the controversial indigenisation law.
Miners say Zimbabwe, blessed with attractive gold, platinum, nickel,
diamonds and coal reserves,  has even missed out on the firm prices for
mineral commodities over the past two years that have been driven by demand
arising from industrialisation in Asia. Against this background, miners and
government officials at the Chamber of Mines AGM last week said the only way
the mining sector was to grow was if dialogue between miners and government
improved and suggestions made to government by miners and other stakeholders
were taken seriously.
The miners cite as an example their attempt to engage government on the
indigenisation and economic empowerment policy for two years, only to
realise that what they had been proposing was not adopted.
Economic Planning and Development minister, Tapiwa Mashakada, said one of
the reasons why miners, some stakeholders and government were failing to
speak with one voice was because the law had either been misunderstood or
deliberately vulgarised by some analysts in a manner that appears as though
the two are negotiating in bad faith and scaring away investors.
“Many times, we have been told that investors need clarity and policy
consistency. Government’s position is very clear. The 51% is ceded for value
in the case of new and existing entities,” he said.
“Furthermore, investors were given the opportunity to present their
compliance plans to the authorities, subject to a reasonable timeline. The
indigenisation law is not about nationalisation or expropriation,” Mashakada
said.
“It is there only to make sure that the broad-based empowerment of the
majority of Zimbabweans is achieved. What happened on the land will not be
replicated at the mines. That is the correct government position,” he said.
Deputy Mines and Mining Development minister Gift Chimanikire said his
ministry listened to all stakeholders’ suggestions as dialogue that would
result in the sector benefiting the country’s economy and its inhabitants
was what his ministry was looking for.
“Government listens to most of what is being suggested, dialogue and
consultation is the only way both parties can come up with a common
understanding. It is through wide consultations that polices that attract
investment and capital are adopted,” he said.
Outgoing Chamber of Mines President Victor Gapare however said none of the
Chambers’ views and those of other stakeholders were taken on board in the
current indigenisation programme.
“We then ask government why then consult if you are not prepared to listen
or even adopt some of the recommendations proffered by those you claim to be
consulting?” he asked..
Gapare said the chamber had proposed an equity quota of 26%, with the
balance coming from credits emanating from social responsibility activities,
local procurement, skills development and release of minerals rights.
“Despite these proposals, government appointed a mining sector committee
from which I was fired by the minister and his colleagues for recommending
an appropriate score for mining,” he said.
He said the committee had recommended 26% equity, 15% credits and a tax of
10% for those not willing to increase their equity by a similar margin.
Gapare said the Chamber of Mines was surprised by the gazetting of General
Notice 114 of March 25 2011 which required mining companies to file a plan
within 45 days and implement the plan for the disposal of 51% mostly to
state entities within six months.
“This notice set several capital raising initiatives back and saw listed
Zimbabwe-focused operations like New Dawn and Zimplats losing between 30%
and 40% of their market value immediately,” he said.
Despite Gapare’s protestations, Mines and Mining Development minister, Obert
Mpofu said government would stop at nothing to acquire shareholding in
companies that had foreign shareholding that is above 51%.
“We are the only country that has not benefited from its own resources,”
Mpofu said. “Everything in Zimbabwe has been taken in its raw form. If we
were allowed to sell our diamonds we would not be talking about
International Monetary Fund and the debt. We have enriched foreigners and
neighbours,” he said.
Indigenisation, Youth Development and Employment Creation minister, Saviour
Kasukuwere, who said his minsitry had an open door policy and listened and
took on board every suggestion which empowered locals, said Zimbabweans
should strive to be shareholders and not be “strangers at their own wedding”.
In his acceptance speech, incoming Chamber of Mines President Winston
Chitando said fruitful dialogue and consultations would enable the sector to
attract more capital, investment thereby benefiting the community.
“Whatever we do, if we do not consultant and negotiate in good faith as
government and miners it will not be easy to see the sector continue to
grow,” he said.
The Chamber of Mines and the Ministry of Mines and Mining Development are
projecting the sector to grow by 44% this year, with platinum and gold being
the leading sub-sectors contributing to strong growth.
The Chamber envisaged that all sub-sectors would record further growth, with
the notable exception of asbestos and, to some extent, granite. Bindura
Nickel Mines MD and former Chamber of Mines president, David Murangari
questioned why important issues discussed between miners, other stakeholders
and government were not being adopted or negotiated as they were important
in the growth on the industry.
“Consultations are important and every view should be discussed and
explanation given if  it  is ignored or adopted. We should also concentrate
on creating new business, thus growing the industry rather than just sharing
the existing mines,” he said.
The chamber was of the firm view that credits emanating from corporate
social responsibility progammes (CSRs) should be included in the 51%
equation. The chamber said its members were constantly under pressure from
the communities within which they operated to carry these out as the
communities themselves saw the benefits of CSRs. “In President Mugabe’s
speech at the 71st AGM held last year at this venue, he indicated that
credits would be accepted for the mining sector given the capital intensive
nature of the industry as well as the need to make the programme
broad-based,” the chamber said.

Defend the freedoms which you fought for

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:46

By Rashweat Mukundi

GREETINGS and thank you for the sentiments you expressed in this newspaper
last week. Thank you because you made official and known to the public an
issue that is at the heart of the crisis in Zimbabwe. You brought clarity on
the political positions that you and your colleagues have taken vis-à-vis
the Zimbabwe crisis.
It is clear from your statement that you feel strongly about the current
state of Zimbabwe’s politics, you wish for the return of one-party dominated
politics. Even before we go for elections you already know the winner. You
also don’t trust those from other parties who are aspiring for leadership.
You despise them, especially Prime Minister Morgan Tsvangirai. You also
declared your support for Zanu PF and that President Robert Mugabe should
rule for ever. This is all fine and well, as long as these views were kept
within the walls of your own home; as long as you don’t go out to implement
your political views using your current military position as well as state
resources that are funded by the poor Zimbabwean tax payer.
You are the Brigadier of the army and not of a political party. I write this
letter to you as an ordinary citizen, who is deeply worried about the
position that you and your colleagues have taken. Let us dissect this matter
Brigadier Nyikayaramba.
You state that you and others fought for freedom. You state that you joined
the struggle in Mozambique at the tender age of 14. That demonstrates an
early political consciousness that should be appreciated by all. Only that
you now view this sacrifice on your part as something that we all should pay
for without end.
We should belong to your party Zanu PF and we should not oppose anything you
and Zanu PF say. In other words you went to war to fight for yourself. You
are lucky that you came back alive from the struggle, not that I wish you
had died, but there are many including myself who lost many relatives in the
war. Relatives who were your comrades, who died fighting for freedom, who
never had the chance to enjoy life as you now do and who left families who
are in poverty and suffering.
Let us try to define this freedom that you fought for. When you say Mugabe
crossed into Mozambique and that he cannot move out of State House because
of that, we begin to wonder what you mean. Did you fight for the freedom to
simply supplant Ian Smith and the Rhodesian regime with another
dictatorship? Did you fight for freedom in order to maintain Zanu PF’s hold
on power?
Did you fight for Zanu PF or Zimbabwe? Is Zimbabwe’s freedom equal to the
maintenance and dominance of Zanu PF in power?  Did those who perished in
the liberation struggle do so for Zanu PF or national freedom? Did you not
fight for universal suffrage, for the right of each and every Zimbabwean,
black, white, Indian and coloured to participate in free electoral
processes? To be able to choose and to vote into power whom-so-ever and
what-so-ever party they want? If you say you fought for freedom, may I
remind you to reflect on this statement once again; what is this freedom? Is
it the freedom of Zanu PF to rule forever? Then that is far from fighting
for freedom because you fought for partisan and selfish interests.
You did not fight for the people of Zimbabwe; rather, you fought for Zanu PF
as much as the Rhodesian forces fought for the selfish interest to preserve
the racist white hegemony.
The freedom that we understand you and many others fought and died for, is
the freedom to be free from fear. A fear that now pervades Zimbabwe as in
Rhodesia.
The fear of the Public Order and Security Act, which you feared in equal
measure as the Law and Order (Maintenance) Act then. The fear of the police
and the military as you once did fear the Special Branch and Selous Scouts
then. The fear of being abducted and tortured as you once did in Rhodesia.
We thought you fought for our freedom, our freedom to join any party of our
choice, freedom to engage in political activity of one’s choice, freedom to
associate and express oneself. You might argue that you and your colleagues
in Zanu PF are the custodians of Zimbabwe’s sovereignty, that you are the
super-patriots and all of us are sell-outs.
That again is a flimsy argument and an exercise in delusion. It is a
self-serving characterisation that serves your political ends. No Zimbabwean
in their right senses, would wish anything else for this country than
prosperity. No Zimbabwean in their right senses, including the Prime
Minister, wish anything else for Zimbabwe other than to see this country
move forward. We know no other home than this land called Zimbabwe.
Patriotism will never be equated to belonging to Zanu PF. Being a member of
Zanu PF is not the definition of patriotism. Zimbabweans are far more
patriotic than you Brigadier. Zimbabweans toil day and night, under the most
difficult conditions to keep this country on its wobbly legs. Thousands of
Zimbabweans work in the most degrading jobs in South Africa and Britain to
sustain their relatives.
Thousands of civil servants, including your junior officers survive on
paltry salaries, yet remain at their jobs. That is true patriotism
Brigadier!
Can you give the people of Zimbabwe an account of Operation Maguta that you
managed? How far are we on food sustenance?  You say Mugabe is the father of
the nation. No one disputes his liberation credentials.  But Zimbabwe is far
bigger than an individual.
If you truly love the president then you would have advised him to rest. You
would have afforded him the decency of seeing his last days in comfort and
not in political turmoil. The president is now your prisoner, possibly as a
result of his own love of power. Being the father of the nation does not
necessarily mean staying put at State House.
It means setting a sustainable political, social and economic culture and
policies that lay a firm foundation for posterity.
Look at the many examples of the roles played by other stalwarts such as
Nelson Mandela, Kenneth Kaunda, Julius Nyerere, Ketumile Masire and Joaquim
Chissano.
These were able leaders; many who suffered just as Mugabe did, who were
steadfast in their principles, but still found it honourable to step aside.
Mugabe would have played a more useful role retired. He would be the
shoulder the nation cries on and not the source of its misery.
You also claim that the current government is denying the military
resources? We wonder who is getting anything from the government? At least
the military has access to the Marange diamonds. What of civil servants, the
thousands of unemployed youths, or the clinics and hospitals without drugs?
Be patriotic Brigadier.  The liberation struggle is a cause whose memory you
are distorting.
May I ask that you go back to defending what you truly fought for, which I
think is freedom. Freedom as you know from experience has a way of marching
on and prevailing, no matter what force is standing in the way.

Muckraker: Let’s have some honesty from the CZI

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:43

THERE was an urgent need to appoint a business strategist as chief executive
at Air Zimbabwe to usher in a new business model and depoliticise its
workforce from its current combative and confrontational approach, the
Herald reported analysts as saying on Monday.
We also heard from “aviation and tourism expert” Karikoga Kaseke who said it
was “abnormal for everyone to afford an air ticket from Air Zimbabwe”.
“Flying should be expensive,” Kaseke declared. “It is not for every Jack and
Jill. It is for the filthy rich. We should not subsidise the rich?”
The analysts criticised pilots “who have of late tended to talk too much
outside professional parameters”.
This is all very interesting. Does depoliticisation include the company
chairman who publishes articles in the state media supporting Zanu PF? We
hope so. And are Jack and Jill related to Tom, Dick and Harry? No wonder the
airline is in difficulty with all these characters around!
But we are not sure about Kaseke’s views on fare structures. We would have
thought competition required an economic business model. While it is true
Air Zimbabwe needs a new chief executive who is a strategist and who can
seriously depoliticise the workforce, it also needs a chief executive who
can tell ministers where to go when they attempt to micro-manage the airline
over the phone.
How many readers, we wonder, recall Transport minister Herbert Ushewokunze
designing new livery for the airline on the hoof?
When a new CEO is appointed, his first task should be to visit Nairobi and
see how Kenya Airways functions in tandem with its technical partner KLM.
Kenya Airways has in recent years expanded from a small regional player,
emerging from the ashes of East African Airways, to become one of the
continent’s major airlines.
It has made Jomo Kenyatta Airport a regional hub with tentacles reaching out
to West Africa and the United States and to the Gulf states and Far East. It
is one of the few airlines continuing to offer a link to Harare.

The Herald’s otherwise thoughtful article was rather spoilt by a Zimbabwean
student at Singapore Aviation College who said Air Zimbabwe was a victim of
sanctions.
So long as the airline shares the government’s delusional approach to
reform, it will have difficulty putting things right. Singapore Airlines, by
the way, provides a good example of how a small airline with strategic
direction and tight management can become a world player with a reputation
for comfort.

CZI president Joseph Kanyekanye has regularly denounced sanctions,
attributing to them the country’s dismal economic performance. He has even
recently decided that sanctions are responsible for the collapse of
industries in Bulawayo.
Nowhere has he talked about the sanctions imposed upon companies that are
required to hand over 51% of their hard-earned assets, mining firms that
have seen their claims withdrawn and in one case handed over to Chinese
operators, and independent broadcasters that are prevented from pursuing
their right to disseminate news and views.
Kanyekanye has chosen the easy route by blaming the country’s predicament
upon sanctions. But it is also the dishonest route and CZI does the nation
no service by repeating the mantras of the former ruling party which have
done so much to damage the country’s infrastructure and sink its once
vibrant industries.
Let’s hear some honest comment from the CZI. It needs to stop pretending the
problem lies elsewhere. The “incalculable harm” Kanyekanye speaks of is
right on his doorstep. And we know who put it there.

One of those culprits was in Bulawayo last week where, we are told, he
helped to remove misconceptions some people had on the indigenisation
programme.
ZNCC past president Obert Sibanda applauded Indigenisation minister Saviour
Kasukuwere for coming to see for himself the state of affairs in the city
and “demystifying the misconceptions some people had”. Others were equally
enthusiastic congratulating the minister for simply visiting Bulawayo.
Charles Chiponda of the Zanu PF provincial indigenisation committee said
after Kasukuwere’s address: “We now feel motivated to move forward and grab
the opportunities that come our way.”
“Grabbing” is obviously the operative word here!
The obsequious character of the Bulawayo business community who fell over
themselves to congratulate the minister just for visiting their city did not
augur well for recovery.
Water supplies for instance appear to have been raised only in passing. But
how long has government been urged to do something about the
Zambezi-Matabeleland pipeline?
Kasukuwere should not pose as Bulawayo’s “Saviour” unless he is prepared to
do something about the water crisis. Seizing companies in a desert is a
pointless exercise.

Those elements in the former ruling party who like to claim Zimbabwe is a
democratic state should note that Deputy Minister for Youth, Indigenisation,
and Empowerment Tongai Matutu is being charged in court for insulting
President Mugabe in a speech delivered in 2005.
Recently SK Moyo tried to convince a visiting head of delegation of a group
of German MPs that Zimbabwe was not targeting MDC officials but simply
enforcing the law.
MDC-T spokesperson Douglas Mwonzora, quoted in the Mail, said the charges
were unreasonable.
“The law relating to the president’s insult has no place in a democratic
society for Mugabe is our political opponent,” he said. “He is our opponent
and our members are bound to criticise him.”
Putting the Matutu case aside, there are a range of laws that the government
uses as weapons in silencing inconvenient voices. The Criminal Law
(Codification and Reform) Act is one such weapon.
But there is a wider issue here. If the country is facing an election,
members of parties opposed to Zanu PF must be free to criticise the
president who is, after all, a key player in any electoral contest. We
cannot have a situation where the president denounces his critics in
vitriolic terms and then hides behind what are called “insult laws” when
they respond.
That is so one-sided and manifestly unfair that it needs challenging in the
Supreme Court.
Rugare Gumbo should be tackled on why his party feels it needs such
instruments of repression in an election where the president is a candidate.
Can’t it get by without them?

Reason Wafawarova, whose much advertised patriotism does not extend to
living in Zimbabwe, was last week taking up the cudgels on behalf of a gang
of state journalists who have been the subjects of sanctions orders as a
result of what the EU ambassador to Zimbabwe said was “the role they played
presenting news in a specific period that was considered as inciting hate
and violence”.
Wafawarova proceeded to recount his own experience as a victim of Western
imperialism while living in Australia. He was, he says, hounded by rabid
MDC-T activists who tried to get him deported. He was in the end “saved by
the power of the law”, he said, after an expensive process.
He then uses the safety of his Australian homestead to attack journalists
such as Basildon Peta, Joseph Winter and Andrew Meldrum who have never said
a word against him.
“Andrew Meldrum was deported from Zimbabwe for suspicions of espionage and
also alleged fabrication of news reports,” he says.
It is extraordinary that Wafawarova, complaining bitterly about defamatory
attacks upon himself, feels free to make these comments about others.
Meldrum was in fact acquitted of the state’s charges and then illegally
deported.
“By the time Meldrum was deported he had long crossed the line between
journalism and political activism,” Wafawarova claims.  Needless to say, he
doesn’t supply a scrap of evidence to support this claim.
“To many respected journalists in Zimbabwe Meldrum had become a disgrace,”
he contends.
Exactly who were these “respected journalists”? Wafawarova doesn’t say.
What we can safely suppose is that they are related to the same gang
currently bleating about being the victims of sanctions. They haven’t worked
it out yet that if they continue to heap invective upon journalists like
Peta and Meldrum, who have spent their careers working for freedom of
expression and democratic change, the EU and US won’t find it justifiable to
lift those sanctions just yet.
As for Wafawarova, we hope his patriotism will soon extend to actually
spending some time in Zimbabwe! The same goes for the anti-sanctions mob in
the US who simply can’t tear themselves away from the comforts of the First
World.

We always find it interesting to see President Mugabe attending one
presidential swearing-in ceremony after another. No sooner had he come home
from Kampala, he was off to Abuja for President Goodluck Jonathan’s
induction.
The chairman of the inauguration ceremonies committee and secretary to the
government of the Nigerian federation, Yayale Ahmed, said: “We have invited
all the 69 political parties or thereabouts; these also include those that
contested the presidential election with President Goodluck Jonathan.
“They are all free to join us in the celebrations, especially as the day
also marks the Democracy Day in Nigeria,” he said.
Mugabe joined 20 other leaders in witnessing Jonathan take his oath of
office to lead Africa’s most populous nation. The irony was clearly lost on
Mugabe, who only three years ago was declared winner of a one-man election
widely denounced throughout the region as an illegitimate farce.
Mugabe, in 2008, had defied international and regional calls for him to
postpone the election, and pushed ahead with the vote anyway, warning
against outside interference in his country’s affairs and shrugging off
Prime Minister Morgan Tsvangirai’s claims of violence. Something about this
sounds rather familiar doesn’t it?

According to AFP, Mugabe had said thousands had been killed in other African
countries ahead of elections but polls were held regardless. He also
indicated that he was open to talks with the opposition — but only after the
vote.
His “victory” was greeted by a deafening silence of congratulatory messages
and a tempest of censure.
Marwick Khumalo, head of the Pan-African parliament’s election monitoring
mission noted that the “atmosphere prevailing in the country did not give
rise to the conduct of free, fair and credible elections”.
Kenyan Prime Minister Raila Odinga said: “Mugabe is a shame to Africa,”
which perhaps explains his vitriotic reception in the government media when
he came here a couple of months ago.
The loquacious Nelson Chamisa quipped: “How do you invite a man to a false
wedding?” after being asked if the MDC-T would attend the swearing-in
ceremony.
“It qualifies for the Guinness Book of Records as joke of the year,” he
said.

Meanwhile, Zanu PF National Chairman Simon Khaya Moyo last week “lashed out”
at the private media “for lacking national focus and ignoring issues that
are of historic importance to the country”.
Moyo, according to ZBC, “expressed disappointment at sections of the private
media who have failed to tell the Zimbabwean story in its rightful context
but instead choose to focus on issues that do not contribute to
nation-building”.
He described this as an “abuse of journalistic ethics and privilege”.
Khaya Moyo, according to ZBC, cited incidents where some sections of the
private media “have been exposed to failure to articulate national
 interests”.
Exposed by whom, we wonder. Clearly ZBC or any other “public” media does not
have the moral ground to accuse the private media of failing to articulate
national interests. Zanu PF’s are the only “national” interests they know.
And they are certainly not shared by anybody else.
Moyo goes on to remind the private media that the Zimbabwean story should be
told by all Zimbabweans as national challenges and difficulties affect
everyone.
“I noted some of these publications lack proper publishing policies, or
programmes but only write Mugabe this, Mugabe that and all very negative,”
he said.
“You begin to wonder whose interests they serve because when Zimbabwe is
burning, we all burn,” Khaya Moyo said.

The private media has been on the receiving end of criticism, ZBC claims,
“with analysts calling for stories that promote a national and developmental
agenda for the country in the face of the neocolonial onslaught by
international media organisations on the government of Cde Robert Mugabe”.
It is clear to us which interests we serve; the interests of Zimbabweans who
for 31 years have borne the brunt of Zanu PF’s misrule. They have had to
endure an unrelenting onslaught from a media that serves a small clique in
government which claims that it has brought benefits to the country.
SK Moyo serves a party that has no moral right whatsoever to lecture us or
anybody else on a national agenda when they pursue a policy of divide and
rule.

Sixteen members have since left because of our article, he says. The club
does not dabble in politics. He thinks he will have trouble now retaining
members, let alone recruiting new ones. The club aims at creating a
financially literate society and empowers members to take control of their
financial lives, we are told. It sounds like a good cause and we agree it
was unfortunate that ZBC ran the story. Anybody interested in joining can
contact Tamuka on tamukac57@gmail.com or cashflowclub2015@gmail.com .

Eric Bloch: Addressing the brain drain

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:42

A SUBSTANTIVE recovery of Zimbabwe’s greatly emaciated economy is contingent
upon innumerable positive and constructive actions.  They include radical
political transformation to absolute democracy, respect for the Constitution
and law, and total compliance therewith, concomitantly with unmitigated
respect for human and property rights.
Measures for a successful transition to a comprehensively viable economy
also include motivation and facilitation of both foreign direct, and
domestic, investment.  Also required is transformation of parastatals, local
authorities, and other utility providers to ensure consistently reliable
service delivery.  An economically conducive taxation regime is yet another
prerequisite of revival of the economy. These are but a few of the very
immense number of critically necessary  measures necessary for the wellbeing
of the economy to be  restored.
Key to almost all of those measures being effectively pursued, over and
above the need for the political will to do so, is that the requisite skills
be available.  Tragically however, Zimbabwe’s skills’ resources have been
grossly depleted over the last decade.  As the economy declined, and as the
political environment made life in Zimbabwe more and more untenable for
countless Zimbabweans departed the country to seek greener pastures
elsewhere.
No authoritative statistics exist as to the exact numbers of Zimbabweans who
have fled to what were perceived to be more conducive economies, but
credible estimates place the number at between three and four million,
resulting in a probable reduction of the resident population by
approximately 25%.  Although not all of the emigrants were vested with
significant skills, many of them were.
Those who left Zimbabwe included a myriad of healthcare providers (doctors,
nurses, physiotherapists, radiologists, and others), accountants, engineers,
managers, technically skilled, and many, many others.  Although Zimbabwe is
not devoid of the knowledgeable, proficient and able, the numbers with those
attributes have markedly reduced, and are far below that required to meet
the economy’s needs.  The insufficiency of the skilled is a major constraint
upon the operations of commerce and industry, the financial, tourism,
mining, and other sectors, and upon those of government, parastatals, local
authorities, and other entities engaged in, or critical to, the economy.
There is a widely-held belief that if and when there is a substantial and
ongoing economic revival, the Zimbabweans in the diaspora will flood back to
their home country.  Sadly, that is improbable in the extreme.
Indisputably, almost without exception those that left the country did so
with every intent to return once the economy was such that it could fully
support them.  Virtually all who departed Zimbabwe were solely motivated to
do so in order to generate sufficiency of income to meet their needs and to
support their extended families and dependants back home.  In addition, some
had relocated in order to assure their families of access to educational and
health services, which services had progressively deteriorated in Zimbabwe.
But they were determined that their absence from their homeland would only
be transitional, intending to return when the Zimbabwean conditions
improved.
However, for many of them, their circumstances have considerably changed.
They have experienced career development and promotion, acquired
investments, in many instances married non-Zimbabweans, made countless new
friends, and much else.  As a result, their original intents of an eventual
return to Zimbabwe have changed.  Whilst they still have a deep-seated love
for their mother country, their new roots are of such a magnitude that
instead of eventually resuming living in Zimbabwe, they now intend to only
periodically visit it, to see their Zimbabwean-resident relations and
friends.
Therefore, if the gargantuan brain drain is to be reversed, which is
economically very necessary, Zimbabwe will need to develop a new pool of
skills.  Not only will doing so take time, but diverse methods will have to
be resorted to if there is to be a wholly adequate,
economically-facilitative skills resource base.  First and foremost,
Zimbabwe will have to resort extensively to the services of expatriates for
a transitional period of time.  Those expatriates are critically needed in
order to provide in-house training to personnel of existing, skills-depleted
enterprises and to assure the continuance and development of those
enterprises.  They are also most importantly necessary to fill the numerous
voids that have developed in Zimbabwe’s tertiary education institutions
(universities, technical colleges, and the like).  However, if an adequacy
of expatriates is to be sourced, Zimbabwe has to offer credible assurances
of security, adherence to law, minimal bureaucracy in enabling entrance to
the country, fair and reasonable taxation of remuneration, assured
remittance of that remuneration to the expatriates’ countries of origin and
availability of satisfactory accommodation and of all supporting utilities,
services and amenities.
Concurrently with restoring Zimbabwe’s secondary and tertiary education to
previously pertaining high levels, it is also of utmost and urgent necessity
to motivate and incentivize those completing their education to remain in
Zimbabwe and apply their acquired knowledge and skills to the development of
the economy and to imparting the knowledge they have gained to others.  That
requires regionally and internationally compatible or competitive emoluments
from employment, non-onerous, non-oppressive taxation (direct and indirect),
and congenial living conditions through reasonable and realistic
availability of utilities and the like.
All private sector enterprises must also be motivated to provide ongoing,
quality in-house training and personnel development, as well as supporting
the employees access external skills development through participation in
training workshops and seminars, and supplementary advanced, part-time
education.  The motivation to do so should be driven by both medium and
long-term benefits accruing to the enterprises, and by government providing
taxation incentives in respect  of the employer-sustained cost of providing
or facilitating the skills development.
Zimbabwe must also do whatsoever is possible to induce Zimbabweans abroad to
return, notwithstanding the many reasons why they are motivated to stay in
their new countries of abode.  If they would be subject to lesser taxation
in Zimbabwe than abroad, were imbued with a sense of security of continuing
economic recovery and growth, and as a result security of ongoing employment
or alternative economic advancement, and with assured utility service
delivery, health and education facilities, many will seriously consider
returning home.  The return would be a major stimulant to the country’s
economic soundness.  It would be a partial reversal of the brain drain,
reinforced by the internal national redevelopment of a brain’s pool.

Enemies of democracy: Mugabe, Madhuku and Mutambara

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:31

Qhubani Moyo

THE recent pronouncements by the National Constitutional Assembly (NCA)
chairman Professor Lovemore Madhuku that he is not going now despite the
expiry of his tenure is not surprising at all. It is mere perpetuation of
the undemocratic legacy that has become his political trademark.

While Madhuku has helped to highlight the problem of long-serving political
and civil society leaders who hang onto power through authoritarian means,
the issue is not about him. It is about leaders who cling to power well
beyond their shelf life and against the will of the people. The Madhuku
tragedy is just a microcosm of a wider problem at a macrocosm political
level, not just in Zimbabwe, but Africa as a whole.
Africa is reeling from multifaceted problems triggered by a variety of
causes, including long-serving autocratic leaders. The roll call in Africa’s
Hall of Infamy includes Teodoro Obiang Nguema Mbasogo, José Eduardo Dos
Santos, Yoweri Museveni, Dennis Sassou Nguesso, Paul Biya, Idriss Deby Itno,
Omar Hassan Ahmad Al-Bashir, Muammar Gaddafi  and of course Robert Mugabe,
among others.
In recent years there was Omar Bongo and Gnassingbe Eyadema. Lately there
was Hosni Mubarak and Zine al-Abidine Ben Ali.
This is the broader picture.  But back home, for those who have followed the
NCA will know that Madhuku’s current self-serving manoeuvre to hang on to
power despite the expiry of his term is not new.
Madhuku’s recent statements were made in the same week with Mugabe’s
declaration that he would not quit soon because Zanu PF is in a state of
“crisis” and would disintegrate if he goes. This makes the situation even
more interesting.
Madhuku’s remarks also come hard on the heels of renewed desperate attempts
by Professor Arthur Mutambara to hang onto his disputed position as deputy
prime minister.
Mutambara’s theatrical buffoonery is now the stuff of legends, considering
that he initially accepted the popular ascendancy of Professor Welshman
Ncube and urged other leaders in Africa to emulate him and understand that
leaders come and go. In so doing, Mutambara had done himself a great favour
and many people, including those who did not take him seriously from the
start, were now prepared to treat him with a modicum of respect for his
exemplary behaviour, but alas he was acting. Now he has shown everybody his
true colours and joined the ranks of Madhuku and Mugabe to form a united
front against democracy. If they were to form a party together it must be
called the United Front Against Democracy!
I know some would say Prime Minister Morgan Tsvangirai is also suffering
from the same “Handiende syndrome”, but he is not part of the subject
matter.
The common denominator in the behaviour of Mugabe, Madhuku and Mutambara — a
group of strange political bedfellows — is that they are all power hungry.
Always displaying undisguised delusions of grandeur, the three are political
megalomaniacs whose undemocratic dispositions betray psychopathological
conditions of delusional fantasies of power and omnipotence, an obsession
with things grandiose. Some used to call this narcissistic personality
disorders and it applied to politics as in other areas of human endeavour as
well.
While Mugabe has demonstrated by his words and deeds beyond reasonable doubt
that he finds democracy confusing and therefore intensely detests it despite
his posturing, it is the double standards of Madhuku and Mutambara that are
worrying to many. This is particularly so because the two have, over the
years, projected themselves as advocates for justice and democracy. Although
the two have been at the forefront of advocating for democratic reforms and
change, it is now clear that they are hypocrites. Their democratic masks
have now fallen irretrievably and they have been exposed for what they are:
political impostors and charlatans.
By their very political nature and actions, Madhuku and Mutambara are more
dangerous than Mugabe whose position as a proud autocrat is rather clear.
Besides, the two professors are still relatively young and energetic, which
means they may be still around for a long time on the political landscape
and possibly will spread the lethal virus of dictatorship all over Zimbabwe’s
body politic.
It is ironic that Madhuku, who spearheads a lobby group for a new
constitution and has been an advocate of limited terms for public officers,
now finds it ethical to tenaciously cling to office when his time is up.
Madhuku, who has been hysterically shouting Mugabe must go, is a two-faced
advocate for democracy and term limits.
The personalisation and manipulation of membership-based civil society
organisations like the NCA by the likes of Madhuku and those who think like
him will not help Zimbabwe move forward. In fact, if we allow such hypocrisy
to take root we can as well forget about real change and democracy in
Zimbabwe.
Self-proclaimed fighters for democracy must lead by example and be the
change that they advocate for. It is sad Madhuku, like Mugabe, thinks that
in their absence institutions they lead cannot continue functioning. Mugabe
wants to stay on because Zanu PF would collapse if he goes. Simply put, he
is the party because if he goes there would be no party. However, the
biological reality is that he is a mere mortal and no one can defy the laws
of nature. What that means is that in thinking that his continued clinging
to power assists his party to remain cohesive, he is simply postponing the
unavoidable. He has created a situation in which Zanu PF will inevitably die
with him. This is a dangerous form of leadership and must be discouraged. It
is, therefore, shocking that enlightened and younger people like Madhuku and
Mutambara have become petty dictators and think like that.
Mugabe’s miserable failure to put in place a succession mechanism or plan in
Zanu PF shows that he is short-sighted and lacks vision. How can an
individual endanger the survival of an institution just because he does not
want to relinquish power? This is what Madhuku and Mutambara are now doing.
Still on Mugabe, it is true that if he goes, Zanu PF will crumble. No doubt
about this. However, it must be said that this is a self-serving and myopic
argument which misses the broader picture that the longer he stays the more
endangered Zanu PF’s survival becomes. As it is, Zanu PF is in danger of
extinction, but Mugabe is making sure that this no longer remains a mere
political possibility, but becomes a looming certainty. Mugabe’s argument
only makes sense if his point is to confirm that he doesn’t care about Zanu
PF disintegrating like Unip and Kanu after his departure. Other than that,
it is a limited and short-sighted view that does not help anyone, including
Mugabe himself, all issues and variables considered.
Similarly, Madhuku is pushing his own personal agenda in NCA and he doesn’t
seem to care about the damage he is inflicting on an organisation which has
been a major player on civil society and democratic reforms issues.

    Moyo is the National Organising Secretary of the MDC led by Professor
Welshman Ncube. He is contactable on qmoyo2000@yahoo.co.uk

Comment: RBZ should keep eye on the ball

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:53

THE surfacing of corporate governance problems at ReNaissance Financial
Holdings Ltd (RFHL) raises the urgent need to look deeper into our banking
regulations. The regulatory authorities have a vital role to play, making
sure the banking sector operates in accordance with the Banking Act and
regulations.

In its report on the RFHL saga, the central bank catalogued a series of
breaches by the bank’s shareholders and managers which should never have
been allowed. The Reserve Bank’s findings were, among others, that the group
had a “number of deficiencies” that included “inadequate capitalisation,
inappropriate shareholding structure, disintegration of corporate governance
structures and internal controls, systematic abuse of depositors’ funds,
high level of non-performing insider and related party exposures, chronic
liquidity and income generation challenges, and gross violation of banking
laws and regulations”.

The findings left the central bank with no option except to place
ReNaissance Merchank Bank under curatorship yesterday — a move which could
have been avoided if the central bank’s surveillance department had not
slept on the job. The department should have detected this malaise early and
acted to protect depositors’ money, as well as that of other well-meaning
investors.

Since the banking sector failure of 2004, issues of corporate governance
seem to have caused a collapse in the sector. Back then liquidity problems
were the major source of bank failures. Banks had poor asset and liability
management, manifested by their investment of short-term funds in illiquid
assets which included real estate, bricks and mortar, and shares on the ZSE.

Banks were even using depositors’ funds to extend their branch networks.
Also, significant advances of unsecured loans to insiders and use of
depositors’ funds for capitalisation purposes made the banks factually and
technically insolvent.

In his monetary policy statement in January 2011, Gideon Gono indicated that
he was satisfied by initiatives that had been taken by banks to meet minimum
capital requirements and he extended the deadline to June 30 2011.

But does the central bank have finer details of capitalisation transactions?
In the RFHL case, the central bank was caught napping and only acted after
the initiative by a whistle blower.

The Basel Accords  are recommendations on banking laws and regulations
issued by the Basel Committee on Banking Supervision and are there to create
an international standard on banking regulations. Basel II, the second issue
of the accords, is about how much capital banks need to put aside to guard
against the types of financial and operational risks banks face.

In theory, Basel  II attempts to accomplish this by setting up risk and
capital management requirements designed to ensure that a bank holds capital
reserves appropriate to the risk the bank exposes itself to through its
lending and investment practices.

We need to know what risk is inherent at the moment through the failure by
RFHL to raise the required minimum capital requirements. What are the
permissible sources of funds when meeting minimum capital requirements?

Is it illegal to borrow funds to meet minimum capital requirements in terms
of banking regulations?

It seems there is that syndrome in the local banking industry where
shareholders technically capitalise their banks to meet minimum capital
requirements, yet there is no commitment of their own funds.

In 2004, Gono in fury shut down most financial institutions that engaged in
malpractices in the sector. But it seems he could have misread the legal
implications of his action as all those once defunct banks have bounced
back, with the governor having to tuck his tail between his legs.

Does that really mean banks are difficult to regulate? Globally, governments
are at war with banks as they caused a global recession ignited by the
subprime lending crisis. Since banks are regarded as an anchor in any
economy, many have accessed bailouts from their governments and yet they
still splash huge bonuses on their top executives and declare dividends.

Without a doubt, financial sector reforms are necessary. For how long should
banks receive a reprieve — considered to be “recuperating” — yet their
practices are askew? Interests of depositors definitely should be put first
and reforms should be an on-going process as financial markets tend to
develop fast propelled by technological advancements.

Editor's Memo: Dangers of Mugabe succession

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:51

Itai Masuku

PRESIDENT Robert Mugabe’s simmering succession crisis, which is full of
twists and turns, just won’t go away. It looks like the burning question
will linger on the political landscape for as long as Mugabe himself still
hangs around. The issue is now one of the most controversial political
debates in Zimbabwe.
What Mugabe is doing and what’s happening around him is not surprising at
all. This was to be expected in an authoritarian system like ours. It is
difficult for such systems and their leaders to adapt to change. This is the
current situation with Mugabe and Zanu PF. Generally authoritarian in
content and character and not dynamic enough, they are either unable or
unwilling to adjust to change.

Since its formation Zanu PF has never had a smooth transfer of power. The
way Mugabe took over in the mid-1970s after the ousting of Ndabaningi
Sithole dramatically demonstrates the point. As Harold Wilson said: “He who
rejects change is the architect of decay. The only human institutuion which
rejects progress is the cemetery.”

Since he firmly consolidated himself as the undisputed leader of Zanu PF in
1977, Mugabe has continued to hang onto power through a mixture of
repression, terror and offers of positions of power and rent-seeking
opportunities. As a result, succession in Zanu PF remains muted.

Studies have shown clearly that in authoritarian systems (although this is
fast changing with the times), one thing is certain: somehow there is always
a succession crisis. The dreaded day, as Professor Myron Rush found out,
casts a long shadow over the party or nation and influences the period of
dictatorial rule by anticipation and anxiety.

There is inherent in dictatorship a succession cycle: first a period of
relatively stable dictatorial rule; then a succession crisis and finally a
resolution of the crisis which is sometimes accompanied by a dissolution or
disintegration of the system. The general character of the succession cycle
is affected by the personality of the leader and political dynamics within
that system.

Mugabe’s explosive succession problem now poses the single biggest threat to
the security of the state and welfare of the people. Given the explosive
factionalism and divisions within Zanu PF — which has volatile regional and
ethnic contradictions — it is almost certain Mugabe’s departure would cause
serious problems unless carefully managed.

Several scenarios can be drawn from the unfolding succession crisis assuming
that Mugabe and Zanu PF are not in the intervening time defeated by the
MDC-T or a coalition of parties in anticipated democratic elections.

The first one is Mugabe goes either by retirement or death and one of his
two deputies in the hierarchy, either Joice Mujuru (most likely) or John
Nkomo (remotely) takes over. Depending on the situation, the successor
stabilises the situation, manages the change and consolidates
himself/herself to steer the party and country through a stable transition.

However, it may not be that simple. If Mujuru and her group take over, the
faction led by Emmerson Mnangagwa is likely to challenge them. In that case
divisions will widen and a split becomes a reality. Zanu PF would then
disintegrate as Mugabe fears.

The second scenario is Mugabe goes, whichever way, and there is an open
contest and Mnangagwa wins. Again if this happens, Mujuru and her camp will
fight this outcome and a split may occur. Or there can be outright chaos
after Mugabe’s departure as rival factions battle it out in a fierce power
struggle that may be short or protracted. At the end of the internal strife,
one of the groups emerges the winner and takes over after crushing
opponents.

Linked to these scenarios which mostly suggest a chaotic transition is the
possibility of the army intervening if there is mayhem. Mugabe’s succession
crisis is exacerbated by the now increasingly clear and undisputed
involvement of the military in Zanu PF and national politics. If Zanu PF
descends into turmoil and fails to extricate itself, the army may intervene.

Reasons for military interventions in Africa are as varied as they are
complex. The military usually gets involved in politics because the civilian
political order would have failed. Through coups or other backdoor channels,
the military finds this as the easiest and fastest way of gaining access to
state power and self-aggrandisement.

Our interview with Brigadier-General Douglas Nyikayaramba last week and our
story this week, as well as military manoeuvres behind the scenes, show some
state security elements are entertaining this dangerous possibility. Mugabe’s
succession may consequently lead Zimbabwe from the current kleptocracy to a
militocracy. There is a clear and present danger of this prospect.

CandidComment: Leadership renewal must be a culture

http://www.theindependent.co.zw/

Thursday, 02 June 2011 19:50

FOR the best part of the last two decades the chorus that Mugabe must go has
been crescendoing until the present stage where it’s now at fortissimo. But
in African lore, when one points a finger, it’s only the index finger that
points at the accused, the rest are pointing at the accuser.
I am no psychologist, nor sociologist but it would be interesting to hear on
an extensive inquiry into the Zimbabwean culture of holding onto positions.
The debate on the tenure of the highest office in the land may be, to borrow
from Marxist philosophy, a reflection of the base at the superstructure
level. Let us look at our own corporate sector.

The name Mike Ndudzo is synonymous with IDC, Anthony Mandiwanza with
Dairibord, Pattison Sithole with Star Africa, and elsewhere Silas Hungwe
with the Zimbabwe Farmers Union.

The list goes on. Last week, Lovemore Matombo was battling to get his name
etched into the Zimbabwe Congress of Trade Union as he refused to step down
from office. Ironically, barring Hungwe, many of those may clamour for the
resignation of the head of state while they remain ensconced in their
offices.

Therefore, those advocating for regular change of guard must accept that
this must be a practice all the way. In fact it must be transformed into a
culture. We must develop in Zimbabwe a culture of changing of the guard at
every level of our institutions, the corporate sector included.

Without wanting to harp on the Renaissance debacle, it may show us the
danger at corporate level of retaining the same leadership over an extended
period of time. As executive chairman with an estimated 40% stake, Patterson
Timba naturally felt Afre was his own fiefdom. And if he did dig into
policyholders funds he obviously viewed them as serfs, himself the feudal
lord.

This type of mentality can easily creep into boardrooms where many CEO
ousters have tended to be unceremonious, if not acrimonious, when CEOs
refuse to let go. After extended battles with non-executive chairman
Professor Roland Smith, Rowland Fuhrop, better known as Tiny Rowland,
finally met his nemesis in fellow German Dieter Bok. But the exit was
rancorous.

We know that chief executives and managing directors are retained by
shareholders for as long as they perform well. But the same argument has
been advanced by Muammar Gaddafi over the past 40 years (in this case the
electorate being the equivalent of shareholders). Only until recently has
that been subjected to test.

How do we know that shareholders are really happy with their performance and
are not being duped into a world of financial make believe? Yes, figures may
be presented, but we all know these can be manipulated and many audit firms
are more interested in retaining a major paying client. Deloitte & Touche
repeatedly got the Anglo American Zimbabwe account in the same way the old
Peat Marwick Mitchell was repeatedly appointed auditors for Cottco and
Gramma Records.

At that time, it was expected practice that after every four years, an audit
company would not make itself eligible for re-election. In the case of the
Gramma Records, the auditors amazingly insisted for nearly 10 years that the
company did not trade in each year under review while thousands of record
albums were being sold. Chris Parvin, then chief executive of Lonrho
Zimbabwe, owners of Gramma, admitted to the ignominy. So there was clear
collusion between the CEO and the audit firm, the best watchdog for
shareholders.

So it’s clear that while shareholders in general appoint auditors, legal
practitioners, corporate advisors etc, this can easily be manipulated by
CEOs. And the longer the CEO remains at the helm, the more likely such
collusion will occur.