FinGaz
Njabulo Ncube, Clemence Manyukwe Staff
Reporters
. . . As SADC plots Mugabe exit
POLICE briefly held opposition
Movement for Democratic Change (MDC) leader
Morgan Tsvangirai yesterday
after raiding his party's headquarters in
central Harare in what they
described as a search for petrol bombs and
weapons the party has been
accused of amassing for the purpose of
perpetrating violence.
At
least 10 activists were arrested in the mid-day swoop, during which
police
sealed off adjacent streets. The drama happened as President Robert
Mugabe
flew out of Harare on his way to Tanzania to attend an extra-ordinary
Southern African Development Community (SADC) summit that will discuss the
tense political situation in Zimbabwe.
Diplomatic sources told The
Financial Gazette yesterday that SADC member
states namely Tanzania,
Botswana, Lesotho and Zambia - which has broken
ranks on the region's policy
of calm engagement - would today pressure
President Mugabe to come up with a
timetable for his retirement.
Tsvangirai's brief arrest occurred shortly
before the former trade unionist
was to hold a key press conference at which
it is understood he was to
announce that his party would boycott the 2008
elections. Sources in the
main opposition party said Tsvangirai also
intended to brief the media on
the abductions of party members, which have
continued over the past year.
Police trucks with heavily armed police details
descended on the MDC's
Harvest House offices, sealing off four streets and
causing congestion of
both traffic and pedestrians. Tsvangirai was later
released.
Police spokesperson Wayne Bvudzijena said the raid had been carried
out to
flush out those behind a series of petrol bombings throughout the
country.
"We are not witch-hunting. We are carrying out proper and thorough
investigations to bring to book all those committing acts of terror," said
Bvudzijena.
He denied that Tsvangirai had been arrested, as claimed
earlier by the MDC,
but stressed that if the opposition leader was linked to
the bombings,
police would arrest him.
The police spokesperson confirmed
the arrest of Piniel Denga, the alleged
mastermind behind the bombings.
Dynamite and detonators were recovered from
Denga's house, said
Bvudzijena.
Ian Makone, a top Tsvangirai advisor, was also arrested after
unlicensed
firearms were discovered at his home, Bvudzijena said.
He
claimed that some of the MDC members carrying out "acts of sabotage" had
been staying at Harvest House, and that 10 activists had been
arrested.
Tendai Biti, secretary general of Tsvangirai's faction of the MDC,
calling
the swoop an act of "fascism" said: "The initial number of people
arrested
at Harvest House is about 20. They also arrested members of staff
and
everyone they found on the 4th and 5th floors. This is fascism. These
are
actions of a mad and erratic regime that has lost all
direction."
Harvest House also houses private companies, whose staff were
also detained.
Shops around Harvest House were forced to close, with
shoppers and
pedestrians reporting random police beatings during the
raid.
Tsvangirai's brief detention yesterday was his second brush with the
police
within a month. He was one of 50 opposition leaders and activists
arrested
on March 11 in Highfield as a coalition of opposition groups
attempted to
gather for a rally. Despite repeated government charges that
the MDC leaders
had been arrested for inciting violence, the Attorney
General's is yet to
prosecute any of them.
Two days after the March 11
arrests, Tsvangirai and other senior MDC
officials emerged at the
magistrates' court bearing signs of heavy beating,
images that outraged the
world and sparked African alarm.
Yesterday, President Mugabe arrived in Dar
es Salaam, the Tanzanian capital,
amid growing signs of unease among his
SADC neighbours over the political
and economic crisis in
Zimbabwe.
Tanzanian President Jakaya Kikwete, who chairs the SADC organ on
politics,
security and defence, and who was in Harare two weeks ago,
convened the
two-day meeting. Apart from Zimbabwe, the meeting will also
discuss fighting
in the DRC and the recent Lesotho polls.
The special
two-day summit will be a test for the 14- member SADC grouping,
accused in
some quarters of not flexing its collective muscle against
President
Mugabe's government. Political analysts said while regional
leaders were
unlikely to condemn President Mugabe publicly, the Tanzanian
summit was
important in focusing world attention on Zimbabwe's escalating
crisis.
Although impatience with President Mugabe is clearly spreading in
the
region, diplomats said yesterday it was unlikely that leaders would come
out
in public as stridently critical of his rule as Zimbabwe's western
critics
hope.
But other diplomats said the only demonstration by the
region of its unease
with Zimbabwe would most likely be in the form of
stricter border controls,
on which Botswana took the lead last
week.
Analysts say although it is certain that leaders will express their
concerns
to President Mugabe today, it is unlikely that they will echo the
shrill
criticism of the West, as many governments across the continent
remain
suspicious of the MDC.
Since the March 11 protests, in which at
least one activist was killed,
police have reported a spate of petrol
bombings that they blame on the MDC.
Last week, a petrol bomb was thrown
into a passenger train leaving Harare
for Bulawayo, while this week, ZANU PF
district offices in Mbare were
attacked. Similar bombings have been reported
in Bulawayo, Gweru and Mutare
where, police say, there was an attempt to
bomb a fuel tanker.
The MDC, which denies responsibility for the attacks,
alleged yesterday that
police assaulted the family of opposition Budiriro
Member of Parliament
(MP), Emmanuel Chisvuure. According to party officials,
police raided the
MP's home and demanded to know his whereabouts. They then
beat members of
his family, the MDC said.
On Tuesday, opposition member
Last Maengahama was abducted in Harare by six
unidentified men outside a
Borrowdale shopping mall. He was later found by a
roadside in Mutorashanga,
officials say, where he was dumped after being
severely beaten.
According
to Bvudzijena, yesterday's raid was part of a wider operation that
included
swoops on an undisclosed number of homes in Harare on Tuesday
night.
A
meeting of Tsvangirai's national executive is expected to be held on
Saturday to endorse a poll boycott and to press for constitutional reform.
However, Nathan Shamuyarira, the ZANU PF spokesman, said elections would go
ahead despite threats by the opposition to boycott them.
Meanwhile,
Britain has urged the United Nations Security Council and leaders
attending
the SADC summit to reprimand President Mugabe over his country's
deteriorating human rights and humanitarian situation.
The Security
Council is due to be briefed today about the situation in
Zimbabwe.
"We
believe that the United Nations and specifically this council should
accelerate action on Zimbabwe to match that of the European Union and other
regional organisations such as SADC," Britain's UN Ambassador Emyr Parry
Jones told the Security Council.
European Union president Germany said it
was "deeply concerned" at the
arrest of opposition politicians, while the
European Parliament said it was
time to end the "brutality."
But South
Africa's UN Ambassador, Dumisani Kumalo, the council president for
March,
has said the situation in Zimbabwe is not a threat to international
peace
and security and therefore, should not be dealt with by the Security
Council.
Jones Parry said Britain welcomed plans by the 14-member SADC to
discuss
Zimbabwe at its leaders' meeting in Tanzania.
"We hope that
summit will send a strong message about the human rights and
humanitarian
situation in Zimbabwe where daily the news seems to get worse,"
he said.
FinGaz
National
Agenda with Bornwell Chakaodza
Not a question of rushing but doing things
properly to end economic meltdown
and political paralysis
HISTORY is
scarred with examples of how hate, careless and inflammatory
language has
raised the level of tension in any country to the point where
things
unexpectedly just explode.
There is nothing exceptional about Zimbabwe to
this rule. It could happen
here if we are not careful. It happened in
Rwanda, in Liberia, in Somalia,
in Sierra Leone, in the Ivory Coast -the
list is endless. In all these
countries if you asked people at the beginning
of the troubles whether they
were going to descend into chaos and non-stop
violence, the answer would
certainly have been a big no. We all know what
then happened.
I am saying all this by way of underscoring the fact that
President Robert
Mugabe in particular and leaders of opposition parties in
general must be
extremely cautious and careful about the tone and language
they use in these
very trying and challenging times we live in. Political
leaders must always
ask themselves the question: If I say this or that, am I
not in danger of
creating events that develop a momentum of their own and
eventually become
uncontrollable?
Indeed, most words we use are not
offensive. It is how we use them that
becomes offensive. As someone once
rightly pointed out: "The words
themselves mean nothing, it is the way we
use the words". The point I am
making here is that we can create events but
fail to control those events by
just the way we use words.
Words such as
"they deserved to be bashed" or kudashurwa in Shona as
President Mugabe said
when addressing ZANU PF Women's League members last
Friday in reference to
the physical brutality on the members of opposition
parties and pressure
groups were extremely offensive and uncalled for.
Zimbabweans do not expect
their President to sink so low.
Much worse however, is when one sees grown-up
women of the ZANU PF Women's
League cheering the President on. What did
Oppah Muchinguri and her gormless
battalions of supporters think they were
doing clapping hands and swinging
their big hips in such a senseless manner
when President Mugabe was uttering
his offensive words? Motherly instincts
tell me that far from celebrating
physical brutality on fellow human beings,
women are appalled by any form of
violence unleashed by anyone and from
whatever quarter.
President Mugabe can slightly be understood with regards to
his intemperate
language as he appears to be living in his own world now. We
know that the
President is an arrogant man and his arrogance has obviously
got much worse
with age. The man is 83. But Oppah Muchinguri and her gang is
a different
ball game altogether. We do not expect such things from her.
These are very
difficult days for all Zimbabweans and the last thing that
they want to be
assaulted with is a sense of the absurd from a group of
women who should
know better.
And I also think that opposition parties
can contribute to the easing of
tension in the country by their use of words
and their behaviour. Words such
as "illegal regime", "illegitimate regime"
are not helpful either. When a
government is so pressured and pushed against
the wall, it becomes difficult
in such an environment sometimes to see a
peaceful solution to a country's
problems.
That is of course not to say
that pressure must not be applied on the
government of Zimbabwe. Pressure
indeed must continue to be ratcheted up on
the Harare authorities by the
international community especially by SADC.
And I do think that for the
Zimbabwean government to drop its bravado and
"go hang" position, it
requires much tougher pressure than the SADC
countries, particularly South
Africa, have been willing to exert so far.
But in the last analysis, it is
really down to Zimbabweans themselves to
determine their own future. When a
people are facing a desperate situation
like we are facing at the moment,
the world out there can help but it is up
to us to handle the change and the
transitional phase properly.
By properly handling the transition, I mean
diagnosing our problem correctly
and embarking upon a process of change that
is non-violent, all inclusive
and has consensus all round as the driving
force behind it. This is
fundamentally important. For nothing is achieved by
trading insults at each
other. Every Zimbabwean regardless of political
affiliation wants to live in
peace.
It is not a question of rushing to
hold 2008 Presidential elections just
because the constitution says so. It
is a question of doing things properly
in order to bring to an end the
economic meltdown and the political
paralysis that has engulfed this once
beautiful country. What will be the
point of holding elections in 2008 when
nothing will really change. If
anything, the country would have completely
collapsed by then. The burning
question is: What will President Mugabe
achieve after 2008 which he has
failed to achieve during the passed seven
years? Will it therefore be
election for elections sake?
If by a stroke
of a pen we get President Mugabe to leave the political scene
before 2008
and we get a new constitution agreed upon by all Zimbabweans and
a
constitution which guarantees freedom, democracy, free and fair elections
and a process which all Zimbabweans have confidence in - if all this
miraculously happens before March 2008, then we will all sing halleluiah and
we will proudly say that the Spirit of the Lord has descended on Zimbabwe.
But if not, what will be the point of holding both Presidential and
Parliamentary elections in 2008 - that is if we can get there before the
explosion?
My fundamental point, therefore, is that let us establish what
needs to be
done before even thinking of 2008 and beyond. We have said time
without
number that our situation has become unsustainable - moreso now when
the
parallel market is running riot, inflation is running riot, prices are
running riot and practically everything running riot. Indeed, a doomsday
scenario is looming on the horizon unless we take the bull by the horns and
do what needs to be done.
History tells us that force is not the best way
to solve our crisis. It is
wishful thinking on the part of ZANU PF if it
thinks that brutal force will
do the trick. In any case, the popular
reaction to police brutality in
Zimbabwe as in any other country is not one
of fear but of anger and
indignation. People will be radicalised even
further!
The ruling ZANU PF party must realise that the economic meltdown and
the
resultant anger from most Zimbabweans as well as the growing
international
pressure - all this has checkmated their ambition to cling to
power at any
cost and for all time. The ruling party must face this problem:
the march of
history in which they have become puppets of events beyond
their control.
So there is no escaping a political settlement in which there
is a total
buy-in from all Zimbabweans. I do not think it is prudent for
President
Mugabe to continue soldiering on but losing friends in the
process. Not only
his friends within ZANU PF itself, but also in the
country, in SADC, in
Africa and the entire international community. We have
burnt our bridges
diplomatically not only in Africa but in the entire
international community
as well.
In conclusion, my strong point is that
let us hammer out a political
solution that we can all live with. What is
important is the future. Past is
past. When things get tough it is no good
turning around and blaming
everything on external forces. We are our own
liberators, as we used to say
in the days of old.
A botched election in
2008, hastily organised, unfree and unfair, will
provide the ideal
conditions for a losing MDC and other losing parties to
argue, perfectly
plausibly, that the elections were not free and fair just
like in 2002 and
2005.
For how long can we go on doing that?
E-mail: borncha@mweb.co.zw
FinGaz
Nkululeko Sibanda
Staff Reporter
THE Southern African Development Community (SADC) is
edging towards the
creation of the first-ever food reserve facility that
will mobilize grain
and cereals to alleviate hunger in the drought-prone
region.
Dubbed "Framework for the establishment of the SADC Reserve
Facility"
the initiative will be launched on April 20 when agricultural
ministers from
the trading bloc convene at a venue yet to be
announced.
Two agricultural experts from Zimbabwe have been contracted to
formulate an
operating framework, which will be presented at the ministers'
meeting.
An official close to the developments told this paper that the
initial
target is to raise between 300 000 and 500 000 tones of maize to be
stored
in different parts of the region.
The ministers will also consider
the
possibility of establishing a fund that
would be used to assist
countries failing to procure maize to avert hunger
among their
people.
"The recommendation that has been put forward to the regional leaders
is
that there is need to start up a grain reserve facility that will be used
to
store maize and any other cereal that can be used to avert hunger and
starvation in the region," said the official.
"According to the document
plan, SADC member states will be able to borrow
money from the revolving
fund for purposes of buying maize, either from the
facility or elsewhere.
This arrangement comes against a background of a
steep rise in the cost of
buying maize from other parts of the world".
FinGaz
Rangarirai Mberi News
Editor
'Titanic Levy' strikes again
IT is unlikely that today's regional
summit in Tanzania will have the
outcome that many of President Mugabe's
critics wish for - such as regional
leaders ganging up on the man and
pleading in unison : "for God's sake,
please go". A more likely scene,
though, is of President Mugabe cornering
Zambian leader Levy Mwanawasa and
asking why he is so against the veteran
leader.
Then, perhaps with a
cup of tea in one hand and a hot cross bun in the
other, he would send burly
Mwanawasa reeling with the now famous verbal
hook: "Go hang".
Why
not?
Only last week, Mwanawasa called Zimbabwe a "sinking Titanic". Now, days
later, saying he has no regrets for making those hurtful remarks, Mwanawasa
goes on to ask why, if President Mugabe is as popular as he says he is, he
finds it necessary to "rule his people in such a fashion."
The Namibian
newspaper reports that Mwanawasa told a meeting of Zambians
resident in
Namibia on Friday that while he supports Zimbabwe's land
reforms, he does
not support President Mugabe's style of governance.
"I hear from some
intelligence that President Mugabe is popular in his
country. But why should
his government be ruling its people in such a
fashion? Why should he be
denying his people freedom of speech?" asked
Mwanawasa.
"Zimbabwe is our
neighbour. When people in Zimbabwe cough, Zambians also
cough. We cannot sit
back and watch when things are going wrong there."
But, were Mwanawasa to
repeat that kind of talk at today's SADC summit,
President Mugabe would
respond, as he would be likely to react to such talk
from any other leader:
"Yes, whatever, and what are you going to do about
it?"
Nothing,
apparently.
According to The Namibian, Mwanawasa was responding to a speech
by the
chairperson of Association of Zambians in Namibia (Azana), Professor
CD
Kasanda.
Kasanda had said his group supported Mwanawasa's comments on
Zimbabwe. "We
have been concerned about the apparent silence of our
leadership in the SADC
region. We note with pride that our president has the
courage to call a
spade a spade and not a spoon," said Kasanda, to
applause.
He went on: "We hope that when Zambia assumes the chairmanship of
SADC this
August, you will continue with this zeal without being
distracted."
That should be a lot of fun.
FinGaz
Staff
Reporter
THE government will not make a formal appeal for food aid
immediately
despite declaring 2007 a drought year, Agriculture Minister
Rugare Gumbo has
said.
Gumbo said the government would not ask for
outside help to feed over 1.4
million Zimbabweans estimated by United
Nations (UN) agencies to be in
urgent need of food aid. The number is likely
to rise sharply with another
poor harvest this year.
Gumbo insists,
however, that the government can feed all needy Zimbabweans.
"Most provinces
need food, but this will be done by the government through
its drought
relief programmes," said Gumbo. "We (government) have the
capacity to feed
the people and we won't need outside help."
Gumbo said last week that the
2007 harvest was inadequate to meet national
requirements, in a rare public
admission by a government minister of a poor
farming season.
Gumbo
replaced Joseph Made in February when President Robert Mugabe
reshuffled his
bloated cabinet. Made had a tumultuous stint at the helm of
the Ministry,
presiding over seven consecutive disastrous agricultural
seasons when he
repeatedly denied that Zimbabwe needed food aid.
Zimbabwean officials and
donor agencies say the government, with one eye on
an election next year, is
anxious to take firm charge of all grain
distribution.
The government
stopped the distribution of food aid by donors to able-bodied
villagers in
2004, forcing many agencies, including the World Food
Programme, to scale
down their operations.
The government has repeatedly accused donor agencies
of using food aid to
sway voters against ZANU PF.
Estimates indicate that
the government needs close to US$240 million to
import maize to compensate
for an expected grain deficit of about 1.3
million tonnes. It costs about
US$180 to import a tonne of white maize,
investigations revealed this
week.
But experts doubt that the country can achieve a yield of 700 000
tonnes
from the 2006/2007 agricultural season.
Renson Gasela, agriculture
secretary in a faction of the Movement for
Democratic Change and a former
chief executive of the Grain Marketing Board
(GMB), claimed the country's
silos were virtually empty.
"The national requirement is two million tonnes,
but the production will be
about 700 000 tonnes for the 2006/7 harvest.
There is no foreign currency to
import maize to cover a shortfall of 1.3
million tonnes," said Gasela.
He disputed Gumbo's assertion that the state
had the capacity to import
whatever grain would be required to cater for
every starving citizen.
"People are starving right now and the minister has
the audacity to tell the
nation that the government will be able to feed the
people," he said.
The government is currently importing 400 000 tonnes of
maize mainly from
South Africa to augment supplies at the GMB. The southern
parts of the
country - Matabeleland North, Matabeleland South, Masvingo and
Lower
Midlands - have reportedly suffered the most devastating crop failure.
A
report this week said Matabeleland South had recorded a 95 percent crop
failure.
While government critics attribute the weak harvest to the
haphazard land
reform, independent agriculture experts blame the 2007 crop
failure to the
El Nino weather phenomenon, associated with drought in the
southern
Hemisphere.
FinGaz
Njabulo
Ncube Chief Political Reporter
THE ZANU PF politburo has referred a
decision to let President Robert Mugabe
seek re-election next year, to the
central committee although remarks by a
senior official yesterday suggested
the meeting, as expected, had endorsed
his bid to serve another term as
party leader.
Politburo sources said in a
tense meeting yesterday,
President Mugabe curtailed debate on his bid for a
new term, after Simon
Khaya Moyo, Zimbabwe's Ambassador to South Africa, had
moved a motion for a
firm position on the President's candidature and a
timetable for the next
election.
A source reported: "The President stopped the discussion, saying it
was an
issue for the central committee to decide. People were really
agitated, they
wanted the issue to be put to rest, but now they have to
wait."
However, ZANU PF spokesman Nathan Shamuyarira said yesterday that
discussion
in the politburo had been "extensive and conclusive". Shamuyarira
said the
politburo had agreed on a candidate and on a date for merged
general and
presidential elections.
He said these decisions would be made
public tomorrow. His remarks suggest
the central committee will now only
meet to rubber-stamp the politburo's
decision.
Despite his crafty
manoeuvres, President Mugabe now faces growing resistance
from his people
who believe that the 83-year-old fighter of the guerilla
movement has traded
on his legacy as a leading light in Africa's
anti-colonial
struggle.
President Mugabe says he is the victim of western sabotage of his
land
reforms.
President Mugabe has
already successfully rallied war
veterans, the youth and women's leagues of
his party around
his
candidacy, effectively shutting the door on any would-be opponents to
his
leadership.
President Mugabe only chaired part of yesterday's meeting before
handing
over to Vice President Joice Mujuru. He left the meeting in progress
to
travel to Tanzania for a crucial Southern Africa Development Community
(SADC).
After his departure, debate continued on other issues, the
sources said. The
highlight was a motion by Joshua Malinga, calling on ZANU
PF to re-engage
the international community. This received particularly
vocal support from
Mujuru and Dumiso Dabengwa, said the source. "Malinga
said having dealt with
the land issue, Zimbabawe should engage the
international community. This
was well supported." This issue has also been
referred to the central
committee.
Government spokesman George Charamba
yesterday claimed the issue of the
scheduling of the next polls was never
concluded at ZANU PF's Goromonzi
conference, as frequently reported. He said
ZANU PF had "admitted to
slothfulness" on the matter, but that it had
subsequently benefited from the
ensuing speculation which kept its opponents
guessing.
FinGaz
Chris Muronzi Staff
Reporter
PRESSURE is mounting on ZESA Holdings to honour outstanding
financial
obligations as it emerged that the Democratic Republic of the
Congo (DRC)
power utility - SNEL - has dispatched a team to Zimbabwe to
demand payment
from the cash-strapped parastatal.
Highly placed
sources said creditors were considering upping pressure on
ZESA to reduce
their exposure to the power monopoly following
politically-motivated
disturbances over the past few weeks that might have
increased Zimbabwe's
country risk index.
Irked by ZESA's failure to settle a long-standing US$2.8
million debt, SNELL
sent a three-member delegation two weeks ago led by
board member Mbuya wa
Nkulu to follow up on the matter.
On March 16, the
delegation met Ben Rafemoyo, the acting ZESA chief
executive officer and
other senior executives of the parastatal. An
undertaking to retire the debt
was made.
It has since been established that ZESA is now in breach of its
pledge,
raising fears that the DRC power utility could be forced to take
drastic
action against its government-run counterpart, which is teetering on
the
brink of insolvency.
Rafemoyo claimed this week that the debt did not
pose a serious threat to
ZESA's contract with SNEL, which has continued to
supply Zimbabwe with
electricity despite worsening economic conditions
characterised chronic by
foreign currency shortages and runaway
inflation.
"The correct position is that since 2004 we have not had any
arrears. The
funds in question relate to payments that we made into their
local account,"
he said. "We have been servicing this debt because at one
time it was
actually US$7 million. This was a ring-fenced debt. There were
no ultimatums
at the meeting because, fundamentally, we made a commitment to
pay the debt.
But we did not want to over- commit ourselves on the issue.
The debt does
not threaten our current contract because we are now paying as
and when it
is due."
Sources however, said SNEL had told ZESA that its
failure to settle the debt
had spawned both commercial and political
challenges for the company as it
is now failing to secure essential
spares.
Zimbabwe imports 60 percent of its power needs from Eskom in South
Africa,
Cahora Bassa in Mozambique and SNEL. Reduced power supplies from
Cahora
Bassa and breakdowns at Snell have contributed to worsening power
cuts in
Zimbabwe.
FinGaz
SOUTH Africa runs a
"standby" facility for Zimbabwe, because its economic
crisis is "political"
rather than "technical" SA reserve bank governor Tito
Mboweni has
disclosed.
Mboweni is quoted as telling a parliamentary committee
that the South
African Reserve Bank (SARB) had a facility with Zimbabwe that
was "fully
secured and the central bank in Zimbabwe uses that facility from
time to
time when it needs to make some payments particularly in South
Africa".
"At the end of every year it is squared off. They have never
defaulted on
that."
Mboweni is quoted as saying attempts by SARB to help
Zimbabwe had been
frustrated by problems he described as being "political,
in the main."
"We have tried to engage in policy discussions with our
colleagues in
Zimbabwe to see what we can do collectively to help... at
every turn our
attempts are frustrated by other constraints. That is really
what we can
do... the rest (we) leave to other people."
He said it was
impossible for the Reserve Bank of Zimbabwe to slow inflation
"unless, for
example, the fiscal policy position changes."
Mboweni also told the committee
that inflation in the Southern African
Development Community region was
under control and below 10 percent, "except
for one country, whose name I
will not mention" where inflation was running
at over 1700 percent, "which
is quite something".
According to Mboweni, the major driver of Zimbabwe's
record inflation is its
"very large budget deficit". The central bank there
could, therefore, not
tame "that inflation picture".
The general economic
situation in that country "is difficult because there
are major constraints
on the production side of the economy" - in
agriculture, mining, and
manufacturing. These problems, Mboweni said, were
"not technical, but
political in the main."
"So we keep hoping and praying that the policy makers
in Zimbabwe could
adopt such policy measures that will be of assistance to
the central bank.
The technical solutions are insufficient."
-Staff
Reporter/I-Net Bridge
FinGaz
Nkululeko SibandaStaff
Reporter
GMB appeals against High Court judgment
THE Grain Marketing Board
(GMB) has appealed against a High Court judgment
reversing the suspension of
former chief executive officer (CEO) Martin
Muchero.
High Court judge
Chinembiri Bhunu had ruled in favour of Muchero on the
basis that the GMB's
lawyers had failed to file opposing papers on time.
Bhunu ruled that Muchero
be awarded benefits accrued since his suspension in
October 2000.
The GMB
has deferred the appointment of a substantive CEO pending the
resolution of
the drawn out legal wrangle with Muchero, which is likely to
have
significant financial implications on the parastatal if it ends in
favour of
the former GMB boss.
In its appeal, the GMB, which is currently operating
without a board, argues
that Bhunu erred in his
judgment when he declared
Muchero's suspension null and void on the basis of
the grain monopoly's
failure to file opposing papers within the mandatory 14
days.
In his
judgment, Bhunu ruled: "I only wish to say that the respondent was
given 14
days by the Supreme Court to file opposing papers . It is common
cause that
the respondent filed papers out of time.
The respondent was therefore,
automatically barred. There has been no
application for the upliftment of
the bar. All that its lawyer has done is
to tell the court that the delay
(in filing opposing papers) was due to him
being taken ill.
"There being
no application for the upliftment of the bar, it remains firmly
in place.
For that reason as well, this application cannot succeed. The
applicant is
therefore, entitled to the relief sought."
However, GMB lawyers insist an
oral application had been filled with the
court.
Said the GMB: "The
learned judge erred in holding that no application for
the upliftment of the
bar was made when such an application was orally made
in court before the
learned judge on the 19th of July 2006.
"The learned judge therefore,
misdirected himself in failing to decide on
the
oral application, which,
he allowed to be made before him in terms of the
High Court rules."
FinGaz
Staff Reporter
THE Zimbabwe
Stock Exchange (ZSE) has shortened settlement periods for trade
in shares in
response to high inflation, which the exchange says is
prejudicing
investors.
Prior to the changes, which will take effect by April 1, a
share sale could
be settled in up to seven days.
However, because of
inflation, this meant that by the time a seller got paid
for his/her stock,
real value would have been eroded.
Yesterday, the ZSE announced new rules to
protect investors.
"Settlement performance is the cornerstone of every stock
exchange. The
current settlement cycle of T+7 is too long in the current
hyperinflationary
environment and investors are being prejudiced," the ZSE
said in a statement
to brokers.
The T+7 cycle refers to the period
between the time of a trade and the last
date payment must be made.
"The
ZSE is working with the transfer secretaries and listed companies to
ensure
that the settlement targets are achieved," added the local bourse.
The
settlement period will be gradually reduced to 5 days from 1 April, 3
days
from 1 July, and then to a day starting September.
Meanwhile, the stock
market traded sideways yesterday as money market rates
fell slightly despite
gaping deficits.
Dealers said the money market remained deep in deficit due
to corporate tax
payments and a drought of treasury bill (TB) maturities.
The stock and
parallel foreign currency markets slowed.
The ZSE's main
industrial index closed at 4 256 126.95 points yesterday,
down just 0.75
percent, while minings fell 2.8 percent to 1 615 491 34
points. Volumes were
generally light across the market, brokers reported.
Analysts see the
negative liquidity position on the money market continuing
into next month,
as only $21 billion will be seen in TB maturities.
FinGaz
Clemence Manyukwe Staff
Reporter
ESCALATING input costs have forced the National Bakers
Association (NBA) to
further revise upwards the proposed price of the
standard loaf of bread to
about $7 500, The Financial Gazette has
learnt.
In its latest costing schedule submitted to the government, the
NBA
recommended that the gazetted price of bread be increased to $7 451
(retail)
and $6 800 (wholesale) to enable the industry keep up with
relentless cost
increases. While the gazetted price for a standard loaf of
bread is
currently $824, the product has vanished from the market and is now
available on the shadowy market where it is fetching over $2000 per
loaf.
In arriving at the proposed price, the NBA took into account the
anticipated
increase in the price of flour from $610 000 to $3 million, the
huge jump in
the price of petrol and the upsurge in the cost of packaging
from $103 to
$770.
"The industry is no longer able to bake a standard
loaf at $4,825 and we are
requesting the ministry, once more, to finalise
the bread pricing issue,"
the NBA pleaded. "Costs are continuing to escalate
weekly at an astronomical
rate as our suppliers site production costs
increases as the main reason for
the adjustments," added the association,
which is battling to get an
official price increase since
January.
Efforts to get a comment from officials at the Ministry of Industry
and
International Trade were fruitless.
The government, which is accused
of pursuing populist policies at the
expense of business, has imposed price
controls on basic commodities to
protect the consumer.
Sadly, the price
controls have failed to keep up with the market realities
resulting in
manufacturers of products affected by the controls either
cutting down on
production or closing shop.
Parliament recently passed the National Incomes
and Pricing Commission Bill
to look into the contentious pricing issue. The
blueprint now awaits
presidential assent.
The proposed legislation
provides for the establishment of a National
Incomes and Pricing Commission
mandated to develop pricing models.
Pricing regulations will, however,
continue to be made under the Control of
Goods Act.
FinGaz
Stanley Kwenda
Staff Reporter
THE Reserve Bank of Zimbabwe (RBZ) governor, Gideon Gono,
has made startling
revelations that the lender of last resort has been
handing Air Zimbabwe
(AirZim) US$600 000 every week in bailout
money.
The funding, he said, was meant to pay for "basic things",
including the
airline's catering costs. AirZim has been availing the
Zimbabwe dollar
equivalent to pay for the foreign currency, airline
officials said.
"Air Zimbabwe has been on top of our list of companies that
knock on our
doors for assistance. The nation does not know that we are
giving the
company US$600 000 every week for basic things such as catering
services
done in London and Johannesburg," said Gono at a meeting with
tourism
industry officials. "There is a mismatch on foreign exchange (in
AirZim's
pricing). Let us say someone is going to a destination, say, New
York, a
route AirZim does not service. They book this person in local
currency, but
when he connects, those people taking the person to his
destination ask the
airline to pay in foreign exchange. The next day, they
will come to queue at
RBZ, yet they are behaving as if they are some Father
Christmas," said Gono.
"We are not saying that they should profiteer; they
should make profit, but
not by fleecing people. I believe there is a way of
doing that. It is
gratifying to see the new energy and zeal of the new CEO
(chief executive
officer). That's what we have been missing for quite some
time. We look to
the day when the airline will win the hearts of the
monetary authorities."
The new Air Zimbabwe CEO, Peter Chikumba, had earlier
made a presentation on
the state of affairs at the airline. He said the
airline was battling to
reconcile its debt and incomes.
"At the moment,
we have 70 percent of our costs in foreign exchange and 30
percent in local
currency, but we have 10 percent earnings in foreign
exchange and 90 percent
earnings in local currency. We are saying for us to
successfully turn around
the company, we should be an export oriented
company," said Chikumba.
He
also said AirZim was saddled with a US$20 million debt.
The airline has
previously said it would remain dependent on RBZ funding as
long as it had
to pay for foreign currency costs in catering, fuel, airspace
and landing
fees while government still bars it from billing in hard
currency.
FinGaz
Bureau
Chief
BULAWAYO - The foreign currency black market has gone haywire but
at the
same time it has left illegal dealers at the "World Bank", as the
city's
parallel quarter is known, in a quandary. They can hardly trade, as
they are
likely to incur losses.
Sources said most dealers were being
forced to buy hard currency and
hoarding it because of the volatility in the
market.
"The market is so volatile that if you sell hard currency in the
morning,
you can not recoup a similar amount by the end of the day," a
source said.
Dealers usually have a profit margin,
which differentiates
the buying and selling
prices but because the rates have gone haywire the
margin can be wiped out
before the day is over.
On Tuesday, the British
pound was trading at $40 000, while the United
States dollar was going for
$25 000, the Botswana pula for $3 000 and the
South African rand for $2
700.
Money transfer agencies abroad were offering even higher rates.
Last
week, the rand and pula were both trading below $2 000.
Industry sources said
lack of trading on the parallel market was likely to
affect companies that
buy foreign currency from the black market and could
see some companies in
the city either scaling down operations or temporarily
shutting
down.
Central bank governor Gideon Gono hinted this week that there could be
bigger forces at play on the illegal parallel market.
FinGaz
Charles Rukuni Bureau Chief
. . .
only a paltry 172 000 pounds frozen so far
BULAWAYO - European Union
sanctions targeted at members of President Robert
Mugabe's government and
senior officials of the ruling ZANU-PF appear to be
a monumental joke and
may be hurting the ordinary Zimbabwean more than the
intended
people.
Ian McCartney, Britain's Minister of State (Trade and Investment)
in the
Foreign and Commonwealth Office, recently disclosed that his
government had
frozen 42 accounts belonging to Zimbabweans that were on the
sanctions list.
The so-called "smart sanctions" were imposed on Zimbabwean
leaders five
years ago and now cover 126 politicians including President
Mugabe, his wife
Grace, sister Sabina and almost all cabinet
ministers.
Though McCartney did not disclose the amount involved, a report by
Independent Television (ITV) at the weekend said only a paltry 172 000
pounds sterling had been frozen.
The British government refused to
disclose the names of the people whose
accounts had been frozen.
"We are
unable to provide the detail requested as this is prohibited by the
relevant
sanctions legislation and data protection laws," the Financial
Sanctions
Unit of the UK's treasury said in response to inquiries from The
Financial
Gazette.
Some British politicians have queried the effectiveness of the
"targeted
sanctions" saying they were hurting ordinary Zimbabweans more than
the
intended people, but the British government insisted the sanctions were
working.
Lord Howell of Guildford told the House of Lords that while the
British
government must keep up the pressure on President Mugabe's
government, the
so-called targeted sanctions were not very effective in
hitting the right
target.
"It appears on the contrary that, while the
ruling tyranny in Zimbabwe is
maintaining its position and even
strengthening it, more women and
children are dying," he said. "There is more
starvation. More and more
other horrors and atrocities are being committed.
The country's economy is
less than half the size it was a few years ago and
a great deal of suffering
is going on?
"As we renew pressure on Zimbabwe,
should we not look at the other, shadow
sanctions which are hurting the
poorest people, particularly the withholding
of some loans from
international institutions and development banks and
other
investment?
"Should we not try to refocus the whole of our operation
vis-à-vis Zimbabwe
in ways which hit the criminals who are ruling the
country and do not hit
the poor people who are starving in very large
numbers and longing for
greater help?" he asked.
One of the Labour
government spokesperson in the House of Lords, Baroness
Royall of Blaisdon
agreed with Lord Howell saying the sanctions had to hit
President Mugabe's
regime and not the poor people of Zimbabwe.
She added, however: "The EU
sanctions put real pressure on the regime. They
ensure that Mugabe remains
isolated - hence his attempts to seek financial
lifelines from China and
Iran to buy time . . . Mugabe and his regime detest
the restrictions on
their movement. Therefore, they (sanctions) can only be
a good thing."
FinGaz
Staff Reporter
THE
Zimbabwe National Water Authority (ZINWA) has spent close to $10.5
billion
since the beginning of the year on the importation of 56 629 tones
of water
treatment chemicals, sources say.
ZINWA was obliged to import the
chemicals because the local supplier,
Zimbabwe Phosphate (Zimphos), could
not meet demand.
Said a source: "Critical chemicals like white hydrated lime
and aluminum
sulphate are now being imported from the manufacturer (outside
the country).
Aluminum sulphate is now being imported because of the fact
that Zimphos can
no longer cope with the demand from the water
works."
Without elaborating, the source also revealed that the Reserve Bank
of
Zimbabwe had pledged to come to ZINWA's aid.
The water authority has
resorted to importing chemicals directly, so as to
avoid the expense of
engaging middlemen.
ZINWA is campaigning to take over water supplies in all
urban centres across
the nation, a drive that has been greeted with stiff
resistance.
Recently, Vice President Joseph Msika used his authority to
influence
matters in Bulawayo after council activists from both the
opposition and
ZANU PF had joined forces to back the city council's
opposition to a ZINWA
takeover.
FinGaz
Nkululeko Sibanda Staff Reporter
Long
arm of the law left grasping thin air
TOP executives who fled to other
countries at the height of the crackdown on
alleged economic crimes appear
to have outwitted the state security
machinery, which is yet to nab any of
them.
Mthuli Ncube, Nicholas Vingirayi, Julius Makoni, Francis Zimuto,
James
Makamba, James Mushore, Dipak Pandya, Mutumwa Mawere, Jayant Joshi and
his
bother Manharlal are among Zimbabwe's wealthiest businessmen who hastily
packed their bags to avoid arrest.
It is reliably understood that most of
the executives have continued to
apply their entrepreneurial skills and are
running thriving businesses in
their host countries.
It is alleged that
some of them continue to exert considerable influence in
Zimbabwe through
proxies.
Police spokesman Wayne Bvudzijena said the police would not give up
in their
efforts to bring the fugitives to justice. Police are still making
efforts
to hunt down the businessmen in conjunction with the International
Criminal
Police Organisation (Interpol) with a view to having them
extradited back to
Zimbabwe
"As a police force, we believe that once an
accused person commits a crime
here in Zimbabwe, he is supposed to be
brought to book regardless of when
they are arrested," he said. "If a crime
is committed, it will always remain
in the books until the person is tried.
If they win the case, then tough
luck but the police would have done what is
expected of them, that is, to
bring the culprit to book. We do not have the
powers to judge, we can only
take them to court and if they are cleared by
the court, then that is
another issue," Bvudzijena said.
FinGaz
Staff
Reporter
ZIMBABWE'S main labour union has vowed to forge ahead with its
proposed
two-day stayaway on Tuesday and Wednesday next week despite a
continuing
crackdown by state security agents against its officials and
members.
"The stayaway is still on," said the Zimbabwe Congress of Trade
Unions
(ZCTU) secretary-general Wellington Chibebe. "Nothing has changed
despite
the crackdown we are experiencing," he added.
The ZCTU, whose
members were this week removed from remand on charges of
engaging in an
illegal demonstration is planning to stage a two-day stayaway
to protest the
economic hardships affecting its membership and the alleged
persecution of
its officials by the state.
On Tuesday, police raided the ZCTU offices in
Gweru, Chinhoyi and Mutare in
search of subversive material.
Wayne
Bvudzijena, the national police spokesman has, however, professed
ignorance
over the police blitz.
Khumbulani Ndlovu, the ZCTU spokesperson, said about
40 armed policemen
stormed the offices of the Zimbabwe Domestic Workers
Union, an affiliate of
the main labour movement, demanding to see Zacharia
Chikwenya, an official
of the trade union.
"The policemen had no search
warrant but said they were looking for fliers
on the ZCTU stayaway and
wanted to know who had distributed the fliers
overnight," said Ndlovu.
In
Chinhoyi, plainclothes police allegedly swooped on the ZCTU's offices
also
demanding to know the person who had distributed the stayaway fliers
the
previous night.
In Mutare, police are said to be hunting down members of the
ZCTU.
Last year in September Chibebe and 40 other members of the ZCTU were
arrested and allegedly tortured while in police custody after a scuttled
demonstration against the prevailing economic meltdown.
Medical reports
produced by independent doctors confirmed that injuries
suffered by Chibebe
and others were consistent with torture.
FinGaz
Staff Reporter
EMBATTLED
Industry and International Trade Minister Obert Mpofu has been
summoned to
appear before the Parliamentary privileges committee chaired by
Defence
Minister Sydney Sekeramayi for the second time in as many weeks.
The
hearing was initially to be held yesterday but it was cancelled at the
last
minute and rescheduled for next week. Although members of the committee
could not comment as they are barred from speaking on the matter, it is
suspected the cancellation could have something to do with a ZANU PF
politburo meeting held yesterday. "The committee has resolved to seek
clarification from the minister following his denial of the allegations at
the first meeting. The meeting will now take place next Wednesday," a source
said.
Mpofu first appeared before the committee on March 7. He is accused
of
telling members of the portfolio committee on Foreign Affairs, Trade and
Industry last year that there was a "shocking" report on alleged graft at
giant steelmaker, the Zimbabwe Iron and Steel Company and then denying
making the statement later.
The committee headed by ZANU PF Chipinge
South legislator Enock Porusingazi
then resolved to move a motion for
Mpofu's impeachment, which was granted by
Speaker of Parliament, John
Nkomo.
Mpofu has been charged under the Privileges, Immunities and Powers of
Parliament Act, and if convicted he can be fined or jailed for two
years.
The committee may also summon Indigenisation and Empowerment Minister
Munyaradzi Mangwana depending on Mpofu' testimony on the role-played by the
former in the Zisco saga.
Mpofu alleged that he and then Anti-Corruption
minister Paul Mangwana, had
discusses the suppression of the Zisco report in
order to avoid discouraging
potential investors from partnering with the
Redcliff-based parastatal.
In a report presented in Parliament on the aborted
management deal between
Zisco and Global Steel Holdings Limited, the trade
committee said Mpofu
violated the country's investment laws by bringing in
the foreign firm. The
minister was also accused of bad corporate governance
by sidelining the
company's board in decision-making.
FinGaz
Economic Viewpoint with John
Robertson
MOUNTING evidence that we are about to suffer another massive
food shortage
and that the costs of importing the shortfall have doubled
invites us to
focus our attention on an undeniable fact: we have never
needed expertise in
the farming sector as much as we need it
now.
Another fact is that the quickest way to start a recovery process
that will
ease all of the country's economic problems will be to rebuild the
foundations of commercial agriculture.
Political problems that will no
doubt remain will present other challenges,
all of which will deserve
careful thought and special attention, but we must
prevent these from
deflecting or derailing our efforts to achieve economic
recovery. Now it is
urgent that we make clear distinctions between what is
needed to make amends
for past failings and what is needed to ensure future
success.
Undiluted
attention has to be focused on proposals that can deliver future
recovery
and growth. With success behind us, we will all be far better
placed to
concentrate far more useful attention on challenges caused by past
errors of
judgment.
Currently, Zimbabwe's broader options can be placed into three
categories:
The first is that we carry on as we are now, trying to make about
a million
small-scale farms work successfully against all the odds. Small
farms need
subsidies. Even the brilliantly equipped and expertly run farms
in Europe
need subsidies because farms throughout Europe are
small.
Zimbabwe, as a developing country, cannot afford subsidies, but
subsidies
are being paid anyway. To fund them, Zimbabwe has to borrow or
print most of
the money. The more the government borrows, the larger the
budget deficit
and the higher the inflation rate; the more it prints, the
more vigorously
it forces the already severe inflation to rise.
Subsidies
that rescue farmers from inadequate performance, if not
bankruptcy, also
relieve them of the need to improve their operating
techniques. Therefore,
subsidies help perpetuate low yields, and this they
do at very high cost.
This generates even more inflation. As government
finances become more
stretched, budget deficits rise, the shortages become
worse and yet more
inflation becomes inevitable.
On this track we will not progress. In fact,
the stronger probability is
that the rural areas in Zimbabwe will become
patchworks of derelict farms.
If we look to other countries that have seen a
similar decline, we might
expect these areas to become competing fiefdoms,
run by warlords who are
each trying to capture more of the less that will
exist. More people will
migrate to the already overcrowded cities and these
pressures will carry
Zimbabwe into worsening chaos, increasing conflict and
deepening political
instability.
The second possibility is that we could
try to make our new farmers
productive under the discipline of state-run
central planning authorities
that depend upon the considerable involvement
of the military and other
uniformed services. At best, we might see these
management methods lead to
gradual improvements in output, but subsidies
will remain essential and the
skills that still have to be learned could see
us still floundering in 30
years' time.
The third option is to go for
large-scale farms. For these, we will have to
encourage our experienced
farmers to return to the land. They will set tough
requirements, but
assistance that will certainly be denied under the first
two options will
undoubtedly become available if we choose this third route.
To succeed, we
have only to install the components needed to make commercial
farming
function as a big, successful industry in a modernising economy.
These
components are property rights, title deeds, security of tenure and
the
transferability of land in an open market. Between them, they will give
the
land the collateral value the farmers need to access essential bank
funding
and they will give the farmers the confidence to make long-term
commitments
to create a productive and profitable, subsidy-free industry.
Zimbabwe could
start the recovery process almost immediately by re-engaging
farmers who
know what to do now. With government's acceptance of the need to
harness
economies of scale, the knowledge and experience of skilled farmers
would
soon become a driving force in Zimbabwe's economy, and they would make
possible the creation of well-structured and viable financial and technical
service centres as well as training institutions in the small farming towns
around the country.
Special tax advantages and other incentives would be
needed, but they would
be extremely cost-effective as they would bring about
the production of
reasonable crops and reduced imports in the shortest
possible time. These
successes would lead directly to the revitalisation of
every other kind of
economic activity throughout the country.
The farmers
would need a lot of assistance to get to work, but the
indications are that
assistance would be readily offered by the many
countries and development
agencies that want to see rapid recovery in
Zimbabwe. However, no such
assistance will be forthcoming if the country
remains committed to policies
that deny civil and property rights, or depend
upon policies of
collectivisation and central planning.
Zimbabwe's assistance needs will have
to be matched by the country's
successful efforts to become deserving of
that assistance. We must first
agree to work together. Industry, commerce,
banking, transport,
construction, the tourism sector and the government all
need to work with
the farmers because none of these can hope to see a
revival of their own
fortunes until a recovery in agricultural output has
started.
Once they have worked out their recovery strategies for their
separate
enterprises, Zimbabwe's re-engaged skilled farmers should be able
to rely on
considerable local support as well as help from
abroad.
However, the essential first step is to redirect government's
attention and
policy decisions to the country's recovery and future success.
No recovery
will be possible while government concentrates on a history that
cannot be
changed. It is the future that matters most, and Zimbabwe's
commercial
farmers could lead the way in restoring hope for a full recovery
of the
country's economic prospects.
Zimbabwe Economic Society
articles are coordinated by Lovemore Kadenge and
he can be contacted on
e-mail lovemore.kadenge@gmail.com or on
cell number
0912980016
FinGaz
Clemence Manyukwe Staff
Reporter
THE World Bank's private sector financing arm, the International
Finance
Corporation (IFC), is to investigate allegations that its funds
could have
been used to finance the operations of a local diamond mine whose
ownership
is in dispute.
Bubye Minerals, in dispute with River Ranch
Limited over River Ranch mine,
has complained to World Bank president Paul
Wolfowitz after one of River
Ranch Limited's directors was quoted by local
media as saying his company
was receiving financial support from the African
Management Services Company
(Amsco). Amsco is a special purpose capacity
building project jointly run by
the IFC and the United Nations Development
Programme (UNDP).
Thierry Tanoh, the IFC department director for Sub-Saharan
Africa, said IFC
would take Bubye Minerals' complaint seriously.
"We
considered the issues you raised in your letter to president Wolfowitz
with
the utmost seriousness and we will investigate," said Tanoh in a letter
written to Bubye last week.
"Amsco has been in operation for almost two
decades and has been delivering
on its core mandate of capacity building and
succession planning for African
businesses. As I am sure you will
appreciate, Amsco makes every effort to
ensure that its client companies
abide by local laws and regulations,
especially as one of its core goals is
the improvement of governance in its
client companies," Tanoh
said.
Although The Financial Gazette could not obtain a copy of Bubye's
letter of
complaint, sources say the letter raises questions about alleged
World Bank
support for River Ranch Limited, one of whose directors,
Tirivanhu Mudariki,
has been specified by the United States
government.
The US, which is the major contributor to the World Bank, has
passed
punitive legislation that compels its representatives to any world
financier
to block any financial support to Zimbabwe or to any businesses
with links
to the ruling ZANU PF officials.
The UNDP last week said apart
from supporting River Ranch Limited, Amsco
also availed assistance to other
local companies such as Bindura Nickel Mine
and Shearwater, a tourism and
leisure company.
The UNDP has denied charges by a lawyer for Bubye that it
had allowed two of
its vehicles to be used by officials of River Ranch
Limited. The charge was
the latest made by either side in a long running
dispute between Bubye and
river ranch Limited over the Beitbridge
mine.
Although production figures are not available, industry officials say
River
Ranch has the capacity to produce much more than Murowa diamond mine,
currently the largest diamond producer in the country.
FinGaz
Africa File with Mavis
Makuni
Africa's former leaders stage unpopular political comebacks
When
London-based telecommunications tycoon Mo Ibrahim announced plans last
year
to offer prizes of up to US$5 million as an incentive for African
leaders to
relinquish power, he overlooked an emerging category - former
leaders who
are determined to stage political comebacks.
Ibrahim announced that the
awards to be given by his foundation were
designed to reward leaders who
were not guilty of rigging elections or
enriching themselves through
corruption and pillaging during their stints as
leaders of their countries.
The philanthropist believed that the initiative
would give African leaders
an alternative to poverty, corruption and
clinging to power beyond their
sell-by date. "Nothing is as important as
good governance in ensuring
development and reducing poverty. Africa's
leaders Face many challenges and
this award will help recognise those of
them that have done well.
But if
Ibrahim's awards are to serve as an incentive to persuade reluctant
incumbents to pass on the baton, what is to be done to discourage former
presidents who have had their turn at the helm of the ship of state from
staging unpopular comebacks? This question has become pertinent in light of
moves by at least two former African presidents who tried unsuccessfully to
amend the constitutions of their countries to prolong their incumbencies to
contest elections once again. These are Malawi's former head of state Bakili
Muluzi and Namibia's founding president, Sam Nujoma.
It was reported in
the press recently that Muluzi has declared his intention
to contest the
2009 presidential elections in Malawi if his party, the
United Democratic
Front, nominates him. He has previously served two terms
of office that
ended in 2004. His attempts to amend the constitution to give
himself a
third term of office were rebuffed by parliament. As a result his
former
protégé and now arch rival, Bingu wa Mutharika was swept into power
albeit
in a disputed election. Muluzi is said to be capitalising on a
constitutional semantic loophole to revive his dream. He is reported to pin
his hopes on a clause in Malawi's republican constitution that limits an
incumbent's stint as head of state to "two consecutive terms" He says this
can be interpreted to mean that one can make a comeback after a break. It is
debatable however, whether this is the understanding of the generality of
the people, who regarded constitutional term limits as a means to ensure the
injection of new blood through regular changes of guard.
Former Namibian
president Sam Nujoma is reported to be working on similar
plans. His attempt
to amend the constitution to allow himself to prolong his
stint when his
term of office ended in 2005 met with stiff resistance from
Namibia's
parliament.
He is reported to be inching his way back through the control he
still
exerts on the ruling South West Africa Peoples Organisation(SWAPO).
The
argument often advanced by long-serving African presidents is that they
need
to stay in office long enough to see their visions come to fruition but
"long enough" has come to mean decades or lifetimes. And in the case of
Muluzi and Nujoma, their comebacks would present a double standard in that
they would condemn their successors, wa Mutharika and Hifikepunye Pohamba to
one-term presidencies.
During the World Economic Forum in Cape Town last
year, South African
president Thabo Mbeki spoke out against unlimited
presidential terms, saying
it was inconceivable that leaders would "continue
to enjoy the support of
their people" if they clung to power for the rest of
their lives. He said
the big challenge in Africa was to ensure that all
components of society
enjoy access to resources in an equitable way. "That
means access to
political power and access to resources." Ironically, after
taking such a
principled stance against Life Presidencies, he has been
accused of
harbouring ambitions to extend his own incumbency after its
expiry in 2009
by amending the constitution.
Another head of state who
has tried to tamper with his country's
constitution to allow himself to
remain at the helm is Nigerian president
Olusegun Obasanjo. Last year a bill
that would have enabled him to seek a
third term of office as leader of
Africa's most populous state was thrown
out by the senate. Obasanjo had been
accused of waging a smear campaign
against his deputy, Atiku Abubakar as a
way to eliminate him from the
presidential race this year. To his credit
however, Obasanjo accepted defeat
when his attempts to fiddle with the
constitution failed, saying: "The
constitution must be held hallowed and
sacred. And on the basis of the
constitution in hand we must start to plan
the next election." Yoweri
Museveni of Uganda is into his 21st year as head
of state this year because
he successfully forced an amendment of the
constitution to allow himself to
remain in control.
The bottom line is
that whether it is incumbents amending constitutions to
cling to power or
ex-presidents exploiting loopholes to stage unpopular
comebacks, some
African countries look set to be stuck with the same leaders
for
decades.
mmakuni@fingaz.co.zw
FinGaz
Comment
A THICK
veil of camaraderie hitherto used by continental leaders to mask
their deep
anger at Zimbabwe's somewhat irregular way of dealing with
universally
accepted principles of good governance, human rights etc. seems
to be
lifting at the least expected time for the government, whose
exasperation
with its increasing isolation is reaching fever-pitch.
Least expected
in the sense that the thunderous chorus of condemnation of
the recent brutal
assault of civic leaders has broken out at a time when it
is almost certain
that the fractious ruling party, which has dominated the
country's political
landscape since independence in 1980, will face a
similarly fragmented
opposition that will, however, be holding its tail high
after scoring
valuable points in the court of public opinion.
With both parliamentary and
presidential elections likely at the expiry of
President Robert Mugabe's
term in 2008, the powers-that-be don't seem to
have much time on their hands
to reverse the tide and defuse the groundswell
of public disenchantment now
being echoed by some African leaders who had
previously preferred silence as
opposed to megaphone diplomacy.
This is against the backdrop of looming
starvation in some parts of the
country where the staple maize crop has been
written off owing to drought as
well as human incompetence. This will
undoubtedly worsen the impact of the
decade-long economic malaise, with the
country having to scrounge around for
scarce foreign currency needed to
import an estimated 600 000 tonnes of
grain to cover the deficit.
While
we don't hold any brief for any political party, it is a fact that
Zimbabwe
is losing valuable friends in its darkest hour and lacks the
wherewithal to
wiggle out of the crisis in isolation.
It is quite refreshing therefore, that
African statesmen whose deafening
silence on the Zimbabwean crisis had been
taken to mean tacit endorsement of
Harare's actions, are slowly coming out
of their shells to speak out on the
economic and political mayhem that is
threatening to drag down the whole
region.
Ghanaian leader John Kufuor,
who doubles up as the African Union chairman,
was the first to shake
officials in Harare, who had all along believed the
continental body would
condone their actions, out of their complacency. Then
followed Tanzanian
President and current head of the Southern Africa
Development Community
organ on security, politics and defence, Jakaya
Kikwete who, despite the
tight lid put on his recent visit, is said to have
preached the same gospel:
Harare needs to repent.
As usual, the United States of America, the United
Kingdom and Australia
have been scathing in their responses. The sharpest
rebuke obviously came
from Zambian President Levy Mwanawasa whose "sinking
Titanic"
characterisation of the situation in Zimbabwe should have surprised
even the
country's worst enemies.
Even where the response has been
demure, the tone has been quite candid, an
indication that patience is now
wearing thin against Zimbabwe.
Predictably, a sizeable number of African
democracies have opted to turn a
blind eye to the unfolding tragedy that is
the shame of the continent. Once
one of the most prosperous countries in
southern Africa, Zimbabwe has now
joined the ranks of failed African states
with the highest inflation in the
world at over 1 700 percent.
The likes
of Kenya, South Africa and Botswana, which are building traditions
of
democracy and good governance, and which could offer continental
leadership
on the unfolding humanitarian and economic crisis continue to
maintain a
studious silence, even as evidence mounts that Harare is out of
control.
But no matter how hard African leaders might try to bury their
heads in the
sand for fear of being branded traitors pandering to the whims
of
imperialists, the deteriorating Zimbabwean situation has had a serious
impact on regional economies in particular that have been inundated with an
influx of Zimbabweans seeking greener pastures.
A large number of
Zimbabweans have taken up South African citizenship and
there are probably
more Zimbabweans in South Africa than in the United
Kingdom, the country
with the highest official tally of expatriate
Zimbabweans.
From an
estimated US$60 billion worth of developing countries' investment in
tertiary education lost through the brain drain in Third World countries,
the region could account for the greater portion of it.
Elsewhere in this
week's issue, a senior executive from SNEL, one of the
country's major
sources of electricity, highlighted to ZESA how the power
utility's failure
to redeem a US$2.8 million debt had caused serious
operational problems that
might spark a political storm in the Democratic
Republic of the
Congo.
SNEL, as the official put it, has been unable to secure adequate
spares and
other critical equipment to keep its systems running.
It is
this unforgivable see no evil, speak no evil and hear no evil kind of
approach to issues the ruling party has previously capitalised on to
ward-off possible censure by the international community while perpetuating
acts of thuggery.
African leaders must stand up and be counted and that
means telling the
powers-that-be in Zimbabwe in unequivocal terms that the
game is over. The
country, which has been stripped of its regional
breadbasket tag and now
ranks among laughable basket cases, has bled too
long, and Africa is tired
of carrying its shame.
Kids ask the most unlikely things
EDITOR - I'm not
disregarding Stephen Gowans' opinion (Herald March 22 2007)
but, the big
question is: if your house is on fire, what sensible thing do
you do? Call
for help, right? When we were fighting for liberation, did we
go it alone?
We looked for help, right?
Zimbabwe is on fire and we don't care how the fire
is going to be put off.
Our focus is to get enough help or support to
accomplish this. Help from the
east, west, north or south is needed to
rescue our sinking ship . . . If the
company is not performing, not
generating business, who do you blame? The
head of the company,
right?
There is more to life after ZANU PF. We cherish the party's
contribution to
our independence, but you're now bringing less cheer and
adoration among
supporters. You're making the exciting game less fun. We
respect the
contribution you made to the liberation of the country - but
freedom alone
doesn't put food on the table.
Our government is
preoccupied with the past . . . our liberation struggle is
perfectly
preserved in books; whoever wants to read or know about it should
simply
visit the archives. By the way you sent us to school, we can read -
thanks
for that. We don't want anyone to remind or narrate or sing the story
of the
liberation struggle for us. ZANU PF mustn't use our national legacy
(liberation struggle history) as a bargaining tool for staying in power.
They shouldn't use it as a tool to justify corruption, oppression and
manipulation.
The liberation struggle was not waged in our beloved
country only. South
Africa, Mozambique, Angola, Ghana and many more
countries went through the
same struggle.
If your own kids were to ask
you: How come there are no lights in the
streets? How come Morgan Tsvangirai
is badly hurt? How come our teachers at
school have sad faces everyday? How
come the buildings and streets in the
city are so dirty? How come there is
no water and electricity at school? How
come food on Air Zimbabwe is so bad?
How come there are fewer people on the
plane to Victoria Falls? How come our
friends at school do not wear uniforms
anymore? How come our friends always
ask us for lunch at school? How come
you're planning to send us overseas for
education? Why is it that Mazoe
drink is labelled "made in Botswana"? Why is
it you take us overseas for
medical check-ups? Why is it ministers drive
luxury cars while many people
are walking to work? Why are our policemen not
properly dressed and have sad
faces? Why it is Victoria Falls is being
advertised as Zambian property?
How do you respond to these simple
questions?
Rasham
Canada
-----------
Living in a hell
hole
EDITOR - Your country is falling apart all around you
and you say nothing! I
was in a bureau de change yesterday and your money
was being quoted at 3 000
000 to one Euro.
Stand up for yourselves and
say something or is living in a hell hole to
your liking?
G
Armstrong
Ireland
----------
It does help to laugh at
ourselves
EDITOR - I read with great interest, and with much
laughter, an article by
Rangarirai Mberi, (If Mugabe was CEO, March 15,
2007). It does help to laugh
at ourselves sometimes, as the article clearly
does.
However, I am worried Ranga forgets a few important factors. He
suggests an
executive chairman, in this case of Zimbabwe Incorporated, with
an abysmal
record of management can never have an easy passage past
shareholders. Fair
enough. But, what if the said executive chairman controls
100 percent of the
shareholder vote, through a potent combination of
kickbacks and threats?
Is this not the situation in Zimbabwe Inc at the
moment? Are the more
influential shareholders in, say an investment vehicle
called Bambazonke PF
Investments, not under the control of the executive
chairman through juicy
kickbacks for their own little companies in
government contracts and free
farms? And are the rest of us, the ordinary
shareholders not part of
Bambazonke, not intimidated into abstaining when
vote time comes? Just a
thought.
Maybe placing the whole company under
curatorship is the answer. Or perhaps
even allowing a hostile takeover; but
no, that wouldn't do.
Tanaka Fitz
Nyoni
Harare
---------
Beatings are
primitive
EDITOR - The beatings of opposition and civic
leaders are a humiliation to
all Zimbabweans and a mockery of the freedom of
speach we fought for.
The ZANU PF leadership should walk within and among the
people, see
crumbling hospitals, crumbling farms, crumbling homesteads,
crumbling
education, crumbling Zimbabwe. As intelligent people we must talk,
discuss
and resolve. Beatings are primitive and have no place in a Christian
democracy.
MD
Harare
----------
The perfect
destination
EDITOR - I read with amazement your report on the
Zimbabwe Tourism
Authority's suggestions that the recent round of political
violence is
inimical to its strategies for market growth. It's probably the
authority's
segmentation of markets that is at fault.
They ought to
target neo-Nazis and Gestapo remnants who live quietly in most
of Europe and
North America. Remnants of Mussolini's fascists in Italy. Not
to leave out
British skinheads.
These people would find Zimbabwe a brilliant destination
with its home grown
fascist political elite and presidential aspirants with
names that celebrate
human gore.
Jacob
Mungoshi
Canada
---------
Stop this lunacy
now
EDITOR - It is with regret that I witnessed the use of
physical force to try
to silence the voices of fellow Zimbabweans. In my
opinion this will never
lead us to true democracy as all we are doing is to
attract attention for
the wrong reasons.
As far as I know, we have the
capability to solve our problems and if a
third party is willing to mediate,
let's be man enough to accept the help.
I remember in the eighties when
Robert Mugabe and Morgan Tsvangirai used to
sit down and talk on a common
subject - the people. I strongly believe they
still have the same subject to
talk about - the people.
Why can't the two gentlemen sit down and talk? They
do not have to have the
same strategy - it is the objective that is
important. Strategy will come
from the discussion. We are sick and tired of
reading about how ruthless
President Mugabe is or how badly Tsvangirai was
beaten up. We are sick and
tired of people having a condescending attitude
towards us just because we
are Zimbabweans.
Is it not enough that we are
struggling to make ends meet only to wake up to
bad news about our beloved
country? We need to wake up and see that we are
cutting the tree that we all
feed on - Zimbabwe.
How does it feel that we now go to SADC begging for
help?
If you go back in history you will learn that ZAPU and ZANU sat down
and
worked out a solution to the "dissident" problem. Why can't our leaders
do
the same? Even if President Mugabe is wrong or Tsvangirai is wrong, why
can't we go above the blame culture and look at possible ways of getting out
of this mess?
The starting point is not for President Mugabe to admit
that he is wrong,
neither is his going a solution. The starting point should
be where we want
to go and what should we do? You will be amazed at the
results if we focus
on the country and stop this lunacy of thinking that
party politics is best.
The two parties, ZANU PF and the MDC, unfortunately
think that they are
above the people. Just because we asked you to put our
points across will
not make you the people. You still remain responsible and
accountable to the
wishes of the people. Your authority is limited by the
mandate that you were
given by the people. We did not vote for you to fight
against each other but
to fight for our needs. We are not going to allow you
to kill and maim us
for your own selfish interests. Just revisit your
mandate and you will never
go wrong.
Pasi
United
Kingdom
----------
The whole world can't be wrong
EDITOR - I
am analysing Ken Mufuka's perception of the goings-on in Zimbabwe
and am of
the opinion that he's of the same mentality as Benjamin Netanyahu,
one time
Prime Minister of Israel: "Sometimes the whole world is wrong!"
I'm
not too sure how true this can be because he didn't get very far. Such
people do not deserve to be heads of state or government because they are
too individualistic, with too much self belief. They personalise issues
where the effects, such as the suffering currently being experienced by the
generality of the Zimbabwean people, do not affect them in person.
Ken
focuses on the response of the international community, be they Western
or
otherwise and draws up the work of the imperialist from that. On the
other
hand these things did happen, the victims were brutalised and that is
what
everybody is talking about; neighbours, region, the AU, international
media
and in Ken's opinion, the plotters.
The whole world was not wrong to support
the struggle for Zimbabwe's
independence and equally the whole world is not
wrong to condemn what is
happenning in Zimbabwe now.
Who is responsible
for the collapse of the economy, health services,
agriculture and
industries? The West? If yes, are we then saying they were
responsible for
keeping the country on its feet? If the answer is no then
something went
wrong and there is need to identify what it is. If the brains
are there,
swallow your pride and get back to it. It's a world where you
will never
make it alone.
Jamton Gobvu
Mozambique