http://www.theindependent.co.zw/
Thursday, 17 May 2012 17:44
Paidamoyo
Muzulu
COPAC still needs a further US$35 million to complete the
constitution-making process, including holding of the referendum, over and
above the US$45 million it has already gobbled.
Copac national
coordinator Gift Marunda confirmed that the body needed US$5
million to
complete the drafting process and for publicity of the final
draft
constitution.
“We need a US$5 million to complete the work
outside the amount needed for
the holding of a referendum,” said Marunda.
“This amount includes activities
such as producing the final draft,
translating it into local languages, the
second all stakeholders’ conference
and consolidation of the draft for the
referendum,” he
said.
Finance minister Tendai Biti is on record indicating that he
had budgeted
US$30 million for the referendum, which may be jeopardised
should Zanu PF
have its way and halt the entire constitution-making process
as it has been
threatening to do constantly.
http://www.theindependent.co.zw/
Thursday, 17 May 2012 17:48
Nqobile
Bhebhe
ZIMBABWE’S new governance charter will tackle the contentious
succession
debate with two vice presidents being appointed based on
seniority to
provide certainty compared to the current situation open to
manipulation.
According to its report of May 14 2012, the Copac
management committee
agreed the new constitution should indicate that the
president appoints two
vice presidents ranked in terms of seniority to
provide certainty in matters
of succession.
“In this
regard, it was agreed that the constitution should provide for a
first vice
president and a second vice president,” reads the report.
On the
quota for women in parliament, the report says: “There was an
agreement on
the principle of reserving a quota for women in parliament but
there was no
consensus on the actual quantum. There was also no agreement on
whether this
quota would apply to both houses of parliament.”
The report also says
the new constitution would allow the president to
appoint not more than five
ministers from outside parliament. The select
committee had earlier set the
number at three.
Copac has also scrapped the holding of provincial
stakeholders meetings
alleging that they risked being “hijacked for ulterior
motives” and would
instead replace them with public awareness campaigns
countrywide.
According to a Copac management committee
documentsubmitted to the select
committee, all the three political parties,
Zanu PF and the two MDC
formations unanimously resolved to dump the
meetings.
“The management committee resolved that it was no longer
necessary to
conduct the pre-stakeholders provincial meetings. Members were
in agreement
that there was high probability that these meetings would be
hijacked for
ulterior motives. In their place, the management committee
suggested the
holding of public awareness campaigns countrywide,” reads the
report.
Last week, Copac co-chairperson Douglas Mwonzora of the MDC-T
told diplomats
that the second all stakeholders’ conference was likely to be
held next
month.
There was mayhem, bordering on violence, during
the first stakeholders
conference in 2009 as parties clashed on ideological
grounds.
Tension has been escalating around the constitution-making
exercise,
particularly on the issues of devolution and gay rights, which
Zanu PF
accuses the two MDC formations of attempting to smuggle in the new
governance charter.
Civil society organisations have long
expressed worry that a second all
stakeholders conference could turn violent
and appealed to Copac to put in
measures to secure a violence-free
conference.
http://www.theindependent.co.zw/
Thursday, 17 May 2012 16:58
Herbert
Moyo
ZIMBABWE’S growing reliance on food imports, particularly from
regional
countries such as Zambia and Malawi, is testimony to the country’s
general
regression over the years blamed on the government’s policy failures
by
players within the agricultural sector, the mainstay of the
economy.
The country should have by now cemented its erstwhile status as the
region’s
breadbasket given the high levels of investment in agriculture and
related
industries the Zanu PF government inherited at Independence in
1980.
The Commercial Farmers Union (CFU) says Zimbabwe’s agricultural
decline was
triggered by the controversial land reform programme from 2000
when the
government expropriated land from the country’s mainly white
commercial
farmers.
“Whilst few have argued about the necessity
for land reform in Zimbabwe, the
implementation which saw the dismantling of
property rights and land tenure
has damaged confidence for investors,” said
CFU president Charles Taffs.
“The attrition of these rights has
impacted, not only on citizens, but also
foreign investors. Compensation for
expropriated investments is a
pre-requisite to the restoration of the
country’s image as a good place to
do business.”
The CFU accuses
the government of failing to give secure tenure to the new
black farmers, a
situation which has turned land into “dead capital” which
cannot be traded
or advanced as collateral by farmers seeking loans in order
to invest in its
productivity.
In contrast, land values and land-based investment in
the region has
increased markedly with Malawi, Zambia and Mozambique having
welcomed
Zimbabwe’s displaced commercial farmers, and in the process
boosting their
agricultural output.
Zambia’s maize production has
peaked three million metric tonnes in 2011
before dipping slightly to 2,9
million metric tonnes this year.
The Zambia National Farmers Union’s
head of outreach and member services
Coillard Hamusimbi said last week his
country would have a maize surplus of
1,035 million metric tonnes this
year.
Hamusimbi said that displaced white Zimbabwean commercial
farmers were
helping Zambia’s phenomenal agricultural
growth.
Malawi also recorded a surplus in maize production after 2005
largely due to
the Agricultural Productivity Investment Programme introduced
in 1998, which
included provision of credit to procure seeds for hybrid
maize, legumes as
well as fertiliser. Subsidies for fertiliser introduced in
2006 brought the
prices down from US$22 to US$7 a bag.
On the
other hand, Zimbabwe, now a basket case, has been moving from one
policy
failure to the next with the most recent flop being last month’s
announcement of a US$20 million loan facility for wheat farmers which
farmers still have not received despite the onset of the planting
season.
Most farmers this week said they would abandon wheat farming,
which can only
serve to worsen food security and increase Zimbabwe’s
reliance on imports.
Even the decision to move the budget year from
June to January is also
indicative of the government’s failure to align its
policies with the
agricultural sector as it is now held in the middle of the
farming season,
making it difficult to plan or offer the ideal assistance
required by
farmers.
The Ian Smith regime held its budget in June
after the agricultural season,
which gave it the perfect opportunity to
factor in the needs of agriculture
for the following
season.
Various schemes aimed at assisting new farmers have been
launched but, as
with other government programmes, they have failed to reach
deserving
beneficiaries with reports of abuse by ministers, high-ranking
government
officials and those connected to them.
Reserve Bank
governor Gideon Gono launched the Farm Mechanisation Programme
in 2007 where
beneficiaries were given farming implements.
However, the programme failed to
stimulate agriculture after it was
reportedly abused by politicians and Zanu
PF supporters.
Lately there have been reports about ministers being
given priority access
to fertiliser at the Grain Marketing Board while
ordinary farmers fail to
access as little as a 25kg bag.
The
failure of the country’s agriculture has had far-reachingnegative ripple
effects on the economy leading to the collapse of downstream industries
reliant on the sector for survival.
According to the
CFU,“traditionally, for every dollar directly invested in
agriculture, three
were invested in downstream industry and services”.
This partly explains why
the economy collapsed before 2009.
http://www.theindependent.co.zw/
Thursday, 17 May 2012 16:57
Owen
Gagare
BRITAIN’S Ambassador to Zimbabwe Deborah Bronnert (pictured) says
she does
not see her country funding Zimbabwe’s land reform programme in the
near
future despite an agreement by the three political parties to
Zimbabwe’s
Global Political Agreement for the country’s former coloniser to
pay
compensation for land acquired during the chaotic land reform
exercise.
Article 5.9 (d) of the GPA says the parties hereby agree to: “call
upon the
United Kingdom government to accept the primary responsibility to
pay
compensation for land acquired from former land owners for
resettlement”.
In their review of the GPA in April last year, party
negotiators also called
on the three principals, President Robert Mugabe,
Prime Minister Morgan
Tsvangirai and Deputy Prime Minister Arthur Mutambara
to write to the
British Prime Minister asking for his country to pay
compensation to those
farmers whose land was acquired.
Bronnert,
however, said although her country initially assisted Zimbabwe
with its land
reform programme, it had never accepted liability for the
programme and
would therefore not pay, more so considering that the
programme did not
benefit ordinary Zimbabweans.
“Well, we were not parties to the GPA,
this was a Zimbabwean agreement and
we have never accepted liability to fund
land reform although we did
actually provide some funds for land reform,
soon after Independence. I
think it was £44 million which we paid,” she
said.
Britain partly funded the land reform programme when it was
based on the
willing buyer –– willing seller concept but stopped in the
early 1990s when
the government announced it would compulsorily acquire
land.
Bronnert said Britain has always believed there was a need for
land reform
in Zimbabwe to address historical imbalances and ensure more
equity to the
land distribution.
“But we do have a problem with
the way the land reform was undertaken and we
feel it was unfair to the
individuals affected. It had a terrible impact
both on those running and
managing the farms, those working on the farms and
the wider Zimbabwean
economy,” said Bronnert.
“At some point I think we are likely
to…support a future settlement but I
think we are a long way from it and it
will require quite a big political
shift and a political settlement here for
that to be taken forward,” she
said.
http://www.theindependent.co.zw/
Thursday, 17 May 2012
16:54
Herbert Moyo
STATE Enterprises and Parastatals minister
Gorden Moyo says his ministry is
considering engaging the Anti-Corruption
Commission to investigate possible
cases of graft in parastatals as it
becomes apparent most entities are
failing to adhere to good corporate
governance practices.
In an Interview with Zimbabwe Independent on Wednesday,
Moyo said most
parastatals were run by incompetent people and had failed to
adhere to good
co-operate governance practices such as holding annual
general meetings
(AGMs), among other things.
He blamed political
patronage for bringing in corrupt and incompetent
managers whom he said had
“no clue” on how to run important institutions. He
said transparency and
accountability were a “culture shock and burden” to
individuals used to
looting parastatals.
“It gets them angry and they have to find ways
to avoid anything that brings
them under scrutiny,” Moyo said. “If any
parastatal fails to provide
financial statements or audited reports, we will
invite the Anti-Corruption
Commission because these are legal requirements
to ensure transparency and
accountability. They should not give us reason to
suspect they have
something to hide,” he said.
Moyo said his
ministry would step up efforts to ensure AGMs are held using
relevant acts
of parliament, subsidiary legislation and the Corporate
Governance
Framework launched in November 2010.
“Out of a sample of 42 state
enterprises and parastatals who submitted their
returns, regrettably only
four were able to hold their AGMs as provided for
under the Companies Act
(Chapter24: 03),” he said. “Let me emphasise that
all parastatals were
required to hold AGMs in line with the CGF beginning
2011.”
Moyo
said failure to hold AGMs deprived government, as a shareholder, the
opportunity to exercise its ownership functions which include consideration
of audited financial statements and reports, authorisation of programmes,
reviewing board composition, making new appointments and approving
remuneration policies.
The Companies Act requires that one-third
of the board retire at an AGM
while best practices in corporate governance
require parastatals to be
properly constituted, timeously staffed by
competent and reliable persons.
Moyo said his ministry was working on
different approaches to ensure
compliance with corporate governance
practices and they would launch next
week the State Enterprises and
Parastatals Restructuring Manual which will
be the “bible, chapter and verse
on the restructuring of parastatals to make
them more efficient”.
http://www.theindependent.co.zw/
Thursday, 17 May 2012 16:55
AS
Zimbabwe prepares for elections either this year or next year, Zimbabwe
Independent reporter Herbert Moyo (HM) interviewed the Organ on National
Healing, Reconciliation and Integration co-chairperson Sekai Holland (SH) on
what has been done so far to heal scars of political violence and brutality
before the polls. Find below excerpts of the interview:
HM: What has the
Organ on National Healing achieved since its inception?
SH: We have
fulfilled part of the mandate of article 7:1c of the Global
Political
Agreement (GPA) in that we successfully advised cabinet on the
adoption of
the policy establishing the infrastructure for peace. We have
also produced
a code of conduct for parties because they are the source of
cyclic
political violence.
HM: Will the code have the force of law to be
effective?
SH: The code of conduct has to be understood in the
context of getting
parties talking face-to-face and using their heads and
hearts to accept that
violence in politics is unacceptable.
HM:
You have also been speaking about intra-party violence; is there still
violence in your own party and if what are you doing about
it?
SH: Yes, every political party in Zimbabwe is crying about
intra-party
violence. It is now staple fare so the code is important because
violence
has to be stopped.
HM: Given that political parties in
Zimbabwe are known for making
resolutions they never fulfill, what
difference will this code make?
SH: The code is based on the parties’
understanding and willingness to
implement the GPA, which is their own
document. Zimbabweans now want peace
so I am convinced the parties will do
all they can to uphold the code.
HM: You were quoted in the state
media as saying the code was “a
Zimbabwean-driven process meant to address
Zimbabwean problems without
external interference”. Does it mean there are
external forces trying to
de-stabilise Zimbabwe?
SH: What I said
was that for the first time the three political parties have
understood
answers to our problems should come from the people rather than
from
outside.
HM: What is the organ’s view on the Zimbabwean exiles’
initiative to seek
retributive justice in South African courts against Zanu
PF officials
accused of violence in 2008?
SH: It is Zimbabweans’
democratic right to seek justice in the best way they
can. We appeal to them
to link what they are doing and what is happening at
home so that they give
our processes maximum support.
HM: How is your organ dealing with the
issue of Gukurahundi massacres in
Matabeleland and the Midlands, and do you
feel this is an issue best
forgotten as some senior Zanu PF politicians
prefer?
SH: Gukurahundi is part of the injury that society has faced.
It has to be
dealt with in the context of truth, justice and forgiveness for
reconciliation to take place. You cannot mask injuries and pretend things
did not happen. There has to be acknowledgement and fair assessment. Some
need an apology and they should get that. Truth, justice and forgiveness are
what the organ is advocating in line with recommendations by our traditional
leaders. After all it is said kugonangozi kuiripa (the best way to appease
an avenging spirit is compensation).The Ndebele emphasise dialogue in
resolving conflicts, so dialogue is the best.
HM: Finally what
lessons have you drawn from countries like South Africa,
Rwanda and Kenya on
restorative and retributive justice?
SH: South Africa has taught us
the need for truth, justice and forgiveness
as the basis for reconciliation
because if we skip these, there won’t be any
reconciliation. An act of
parliament is going to establish the National
Peace and Reconciliation
Council — a permanent body that will deal with the
past, even the period
before 2009. (The) Rwanda (genocide) is scary; do we
(also) have to kill 800
000 people before peace prevails? No!
http://www.theindependent.co.zw/
Thursday, 17 May 2012 17:31
Brian
Chitemba
THE cash-strapped Bulawayo City Council is proposing to slash
workers’
salaries by 20% to service a loan used to purchase luxury vehicles
for
senior officials after a local bank threatened to attach some of its
buildings.
A report by the council’s finance committee shows that
city fathers wanted
salaries cut to enable it to repay US$4,5 million bank
loan used to buy 20
top-of-the range vehicles for managers. Among the
vehicles purchased were a
Land Rover for town clerk Middleton Nyoni, a
Toyota Prado for the housing
director Isaiah Magagula and a Toyota Fortuner
for finance director Kempton
Ndimande.
The bank has
threatened to attach the council’s main buildings, the Tower
Block and
Revenue Hall, over the outstanding debt.
A finance committee member
told the Zimbabwe Independent this week that
council was forced to resort to
slashing salaries to help solve its unending
cash flow problems as there was
no other way of raising the required amount.
“Council is broke
because we rely on rates but we all know that residents
are struggling to
pay their bills. Therefore, it’s likely that council will
slash salaries,”
said the senior councillor.
Council has been failing to pay workers
on time for the past three years,
prompting workers to go on strike last
month. Council workers in Grades four
to 12 are yet to receive their March
salaries.
Council reportedly collects close to US$4 million in
revenue each month and
the week-long strike has already prejudiced it of
about US$1 million.
The Zimbabwe Urban Councils Workers’ Union
general secretary Moses Mahlangu
demanded that council pay workers their
outstanding salaries and return the
luxury vehicles if it could not pay for
them instead of cutting workers’
already low wages.
Service
delivery in Bulawayo has been crumbling with burst water and sewer
pipes now
a common feature in residential areas.
Council was also failing to
pay a US$21 million Zesa bill, which resulted in
the power utility
disconnecting electricity at the City Hall, Tower Block
and Revenue Hall two
months ago, and the three prestigious buildings have
been without power ever
since.
Bulawayo mayor Thaba Moyo (pictured) declined to comment
saying he was busy
in meetings.
http://www.theindependent.co.zw/
Thursday, 17 May 2012 17:30
Paidamoyo
Muzulu
THE Parliamentary Legal Committee (PLC) has ruled that the
recently
announced general mining regulations of 2012 are
unconstitutional.
The department of mines increased new application fees,
special licence
fees, registration fees and ground rental fees to between
US$5 000 and
US$2,5 million.
The PLC resolved to issue an adverse
report on the statutory instrument at
its meeting on March 16 2012 saying,
among other things, the application
fees were pegged too high and they were
non-refundable even if an
application failed.
“Generally, the
fees imposed by the statutory instrument are very hefty,”
the PLC’s report
says.
“They impose a heavy financial burden on citizens and
non-citizens alike who
opt to invest in the mining sector.
“Legal
instruments that impose hefty financial burdens are more appropriate
for
legislative enactment to the extent that this is the only way that
ordinary
citizens would be able to have input into the process through their
elected
representatives.”
The committee also raised concerns that the
statutory instrument is ultra
vires the enabling Act, Mines and Minerals
Act.
“The statutory instrument purports to have been enacted through
the minister’s
regulations –– making powers in the Mines and Minerals Act,
that is, section
403. The said section does not give any competence to the
minister to make
regulations prescribing application fees,” reads the
adverse report.
The PLC chairperson Shepherd Mushonga said it would be
illegal to charge the
new fees.
“These fees are a legal nullity,”
said Mushonga. “The ministry cannot
continue to levy these fees in the face
of our adverse report.”
However, Mines minister Obert Mpofu maintains
that the regulations would
stand since the PLC’s report is just an
opinion.
“I am empowered by the Act to make the decision,” said
Mpofu. “People can
form their opinions but the minister derives his powers
from the Act and
would make decisions in line with his
powers.”
Mpofu told parliament on Monday that his ministry had so far
receipted US$10
million since the regulations were gazetted since serious
miners are the
only ones applying.
He also said the new fees were
meant to deter investors who applied for
licences for speculative
purposes.
The Chamber of Mines last week complained that the new fees were a
hindrance
and were negatively affecting investment in the industry.
http://www.theindependent.co.zw/
Thursday, 17 May 2012 16:47
Tendai
Marima
MINING has always played an important role in shaping Zimbabwe’s
pre-colonial and modern economic history and politics.
Gold trade with
Arabs, which dates as far back as the 11th century, made
British explorers
think they had stumbled on King Solomon’s mines when they
first saw Great
Zimbabwe in 1870.
Years later, King Lobengula was duped into signing
the Rudd Concession
ceding all mining rights to Cecil John
Rhodes.
The discovery of copper in Zambia led to the development of
the Rhodesian
Railways connecting gold-rich South Africa to Zambia and the
Congo between
1904 and 1909.
Still in keeping with Rhodes’ Cape
to Cairo dream of a colonial super state,
50 years later, Kariba Dam was
primarily built to supply hydroelectric power
to copper mines in Northern
Rhodesia and the Belgian Congo.
Even though Zimbabwe was not as
“mineral rich” as her regional counterparts,
chrome, iron ore and gold
helped sustain the colonial economy when Ian Smith’s
regime faced sanctions
for its unilateral declaration of independence in
1965.
Today,
Zimbabwe’s mines have more than 60 minerals, and the recent
discoveries of
new deposits of platinum and diamonds as well as economic
recovery, has
placed mining as the top revenue earning sector.
At last week’s
Chamber of Mines annual general meeting in Victoria Falls,
the chamber’s
president, Winston Chitando, said mining now contributed 13%
of GDP and 50%
of exports.
Currently, mining is Zimbabwe’s single fastest growing
sector and attracts
more than half of the country’s foreign direct
investment. If growth trends
continue, analysts expect the sector to grow by
15 to 20% in the coming
years with revenues of up to US$5 billion a year by
2030.
Despite the troubles which faced foreign mining firms during
Zimbabwe’s
crisis years after 2000, new local and foreign investors, mainly
from South
Africa, the United Kingdom and later China, marked a new era in
Zimbabwean
mining in which the government played a leading
role.
The discovery of vast platinum reserves resulted in government
brokering
two of the biggest mining deals in Zimbabwe’s history. For US$225
million,
South Africa’s Impala Platinum acquired Zimplats, while Anglo
Platinum
invested US$300 million in Unki Mine.
Diamond
exploration also attracted a US$61 million investment from Rio Tinto
into
Murowa Diamonds in Mazvihwa, south central Zimbabwe, about 40
kilometres
from the asbestos mining town of Zvishavane in the Midlands
Province, but
these new capital injections did not automatically translate
into growth for
the struggling mining industry.
Professor Richard Saunders of the
University of York in Toronto, Canada,
noted that “mining restructuring by
means of investment focused mainly on
mergers and acquisitions that involved
the transfer of asset ownership
without an accompanying renewal and boosting
of production”.
Apart from developments in platinum projects, mining
productivity was low,
especially from the traditionally strong producers
such as asbestos, coal,
gold and nickel.
Although Zimbabwe had
been among the top gold producers in Africa,
productivity was hit hard by
the economic meltdown.
Between 1999 and 2008, mining contribution to
the GDP was as low as 4%. In
2000 to 2001, more than 10 gold mines shut down
or were struggling and by
2007, gold output had fallen to “it’s lowest
levels in more than a century”,
according to University of Zimbabwe
economics professor, Tony Hawkins.
Hawkins said the Reserve Bank’s
failure to pay gold producers for sales
worsened the slump as even “the
country’s largest producer, Metallon Gold,
responsible for some 60% of
annual output, was at a standstill in January
2009 because it was owed some
US$20 million by the RBZ”.
On the bright side, the combined effects
of introducing the multi-currency
in 2009, increased Asian investment in
Africa due to a higher demand for
mineral and energy resources, and thus
helped revive a dying sector and
fuelled economic recovery.
Since
then mining export revenues have grown in leaps and bounds from US$600
million in 2009 to US$1,3 billion in 2010.
However, Hawkins
believes continued gains in revenue are critically
dependent on global
market forces and internal political stability as well
as government
policy.
The majority of mining companies have submitted
indigenisation
implementation plans, but submissions are still outstanding
from Metallon
and Duration Gold and the Chamber of Mines’ proposal on how to
resolve the
empowerment issue was rejected.
Chitando said one
foreign-owned company had offered to transfer 26% of its
shares to
indigenous Zimbabweans while 25% would form part of its corporate
social
responsibility projects.
Commenting on the rejection, Chitando said:
“They (government) said they
preferred to handle each mining company
differently for them to comply with
the indigenisation requirements. As we
speak, that exercise is being done.”
The company specific nature of
indigenisation laws means each and every
company has to comply, rather than
a conglomerate offering a blanket
indigenisation implementation
plan.
The top-down approach of government in mining policy
formulation has also
come under fire from Chitando.
“Lack of
consensus on the contribution of the mining industry to the economy
is the
prime reason for some policy interventions working to the detriment
of the
industry,” said Chitando.
Further to the controversial indigenisation
policy, the highly militarised
nature of mining, especially diamond mining
in Marange, has drawn criticism
of the government by local and international
human rights groups.
Next week’s first-ever visit by the UN Human
Rights Commissioner, Navi
Pillay, includes a trip to the Marange diamond
fields. Private media and
rights groups expect Pillay to comment on human
rights abuses there, but
government says it had invited Pillay on its own
initiative and “had done
nothing wrong” in Marange.
In other more
stable African countries, the true potential value of mining
remains to be
seen because although the continent sits on a vast array of
mineral
deposits, mining still remains an under-funded and underdeveloped
industry.
Countries continue to export raw minerals and lose revenue due to
lack of
beneficiation and value-addition.
For Zimbabwe, the numerous
potential economic benefits of mineral
exploration emphasise the need for a
more cautious indigenisation policy and
the development of sound
macro-economic policies which safeguard the
interests of all stakeholders,
including local communities, government and
multinational corporations.
http://www.theindependent.co.zw/
Thursday, 17 May 2012 16:16
Reginald
Sherekete
SUSPENDED Zimbabwe Stock Exchange (ZSE) CEO Emmanuel Munyukwi
is set to
appear before a disciplinary hearing next week, facing numerous
charges
which include, among other things, undermining the exchange’s board
and the
Securities Commission of Zimbabwe (SEC) and
incompetence.
Munyukwi was suspended last week after SEC CEO Tafadzwa Chinamo
sent a
letter on March 15 to the ZSE board highlighting how Munyukwi had
undermined
the regulatory body’s authority and the ZSE Listing
Committee.
According to the letter, SEC called for a meeting on March
13 between the
ZSE board, the Listing Committee and financial advisors
regarding concerns
over the RioZim and Ariston circulars, which the
regulatory body felt were
issued without proper adherence to exchange
regulations and provisions.
Munyukwi’s cellphone went unanswered when
businessdigest tried to seek his
comment.
Munyukwi is alleged to
have cancelled the meeting without the consent of SEC
and the ZSE board, a
development which created confusion since other
participants had already
made other plans. SEC later revealed that the
meeting would proceed as
scheduled.
“The ZSE CEO mischievously contacted all persons due to
attend the meetings,
telling them the meetings had been cancelled as the ZSE
would be engaging
SEC directly on the matters. The ZSE did not at any time
contact SEC nor
acknowledge receipt of our letters,” reads part of the
letter by SEC to the
ZSE board.
In the letter, Chinamo further
highlighted that Munyukwi was unreachable by
phone when they tried to
establish why the meetings were cancelled and
advised attendees that the
meetings would proceed as scheduled, adding SEC
would go ahead with its
planned action with or without their presence.
“In the end, we met
Ariston and RioZim, first the advisors, then in the
afternoon we met the
advisors together with representatives of the
companies,” wrote
Chinamo.
But it is understood that ZSE Listing Committee chair,
Vimbai Nyemba could
not attend since she had made other commitments after
the ZSE CEO had
informed her of the cancellations.
RioZim and
Ariston both agreed on the recommendations from SEC with regards
to their
irregular circulars and issued circulars to their shareholders
incorporating
issues raised by SEC.
Chinamo said that Munyukwi only responded later
with responses which did not
in any way address their concerns and as such
the regulatory body regarded
as not warranting a response, but rather a mere
acknowledgement.
Munyukwi, who is accused of undermining the board,
is understood to have
granted permission for the two circulars of RioZim and
Ariston to be
published without prior approval of the ZSE Listing
Committee.
“Bear in mind that the ZSE Listing Committee did not meet,
as they should,
to review and approve either corporate action. The ZSE did
not issue the
Listing Committee members with the two circulars, even after
they were
published. In the RioZim circular, the company writes that
approval was
granted by the ZSE Listing Committee,” Chinamo
said.
“It would appear the ZSE CEO considers himself the ultimate
authority, with
no regard to structures that are supposed to guide him. This
is a gross
violation of procedure, a disciplinary matter for the ZSE Board,
which SEC
must insist action is taken.”
This comes after reports
last year that stockbrokers were pushing for the
ouster of Munyukwi after
passing a vote of no confidence in him in a meeting
where members sought to
address issues affecting the viability of the
exchange.
Munyukwi
is believed to have fallen out of favour with member brokers since
the
extra-ordinary meeting held in June last year, where he failed to
provide
information to members regarding the ZSE audit, among other
issues.
The fallout led to brokers calling for an EGM at the exchange
,which
Munyukwi blocked on grounds of it not being properly constituted. It
is
understood that brokers forcibly made their way into the exchange
building
and convened their meeting but Munyukwi did not
attend.
Chinamo also indicated Munyukwi continued to hold such a
vital post without
him satisfying minimum requirements for him to be the CEO
of the ZSE.
“While on the CEO, his fit and proper documentation is
still outstanding and
I am of the view that he can’t continue to hold such a
vital post without
SEC having knowledge of his credentials. We will write to
the ZSE chair
highlighting this issue and give him 5 days to comply, failure
of which
would mean suspending him,” Chinamo said in his letter to the
board.
Munyukwi will be allowed to appeal against his suspension and
charges
levelled against him in the disciplinary hearing. Both Chinamo and
the ZSE
chair, Eve Gadzikwa confirmed Munyukwi’s suspension but could not
furnish
businessdigest with the charge sheet, saying the matter was
subjudice.
It is believed that the charge sheet also includes issues
with regards to
lack of detail in ZSE financial statements, questionable
procurement
procedures and shambolic minutes of important
meetings.
Munyukwi’s suspension followed the relieving of duties of
Tony Barfoot as
the ZSE consultant three weeks ago. Barfoot is the former
CEO of the ZSE.
http://www.theindependent.co.zw/
Thursday, 17 May 2012
15:50
Brian Chitemba
THE mining sector is likely to miss the
projected 15,9% growth target this
year due to a plethora of challenges,
chief among them erratic electricity
supplies and lack of financing for
developmental projects.
According to a Chamber of Mines of Zimbabwe (CMZ)
annual report, electricity
supply remained a major challenge facing mining
entities while an
arrangement to provide reliable supplies to consumers who
paid premium
tariffs paid dividends, but companies complained about the high
tariff
application.
“Some members could not access electricity on
the scheme due to the absence
of a dedicated transmission infrastructure.
With suppressed demand
surpassing supply by over 2 000MW, developmental
efforts in the mining
industry is going to be seriously affected,” reads
part of the CMZ’s report.
“New projects are unlikely to take off, and if
they do, the extent of demand
management will be severe for those that are
not able to participate in the
ring-fenced contracts with
Zesa.”
The CMZ suggested that the immediate solution to the power
problems was to
negotiate with regional electricity suppliers for
incremental power
supplies.
The chamber said that the increases in
royalty rates for gold and platinum
from 4,5% and 5% to 7% and 10%
respectively would heavily weigh down on the
mining sector's projected
growth of 15,9%.
“Hardest hit is the gold sector whose majority of
companies are still
struggling to increase their production capacities to
viable levels,” read
the annual report.
But Mines Minister, Obert
Mpofu, assured the mining firms during a CMZ
annual conference in Victoria
Falls last week that his ministry would review
the royalties.
The
CMZ said mining firms continued to face challenges in raising the
required
capital to meet planned capacity developmental requirements, adding
that the
tight liquidity conditions meant that local borrowing was limited
to
short-term working capital requirements in the face of huge capital
requirements for developmental projects.
It is estimated that
more than U$7 billion was required over the next five
years to finance
developmental projects. But of the $2,881 billion loans
advanced in 2011,
the mining industry accessed 6,4% while the bulk of the
loans went to the
manufacturing sector (18,8%), agriculture (16,32%) and
services 15%.
The
mines noted that it was difficult to access credit from international
banks
after Zimbabwe deteriorated on competiveness, according to the
International
Finance Corporation.
“The cost of production during the year rose on
the back of labour costs,
electricity, imported consumables and cost of
capital. Mining title fees,
royalties and development levies were also
increased during the year.”
http://www.theindependent.co.zw/
Thursday, 17 May 2012
15:48
Reginald Sherekete
THE recently published consumer price
index (CPI) statistics which saw the
annual rate of inflation marginally
increasing to 4,03% for the month of
March have come under scrutiny from
market players who fear the official
figures are not reflective of the real
situation on ground.
The annual inflation rate stayed in check from the
beginning of the year
where it remained unchanged at 4,3% for the month of
January and February
and slowed down to 3,98% in March, a development that
painted a rosy picture
in the economy.
But economists have raised
doubts on the inflation numbers, arguing
conversion factors adopted by
Zimbabwe National Statistics Agency (Zimstat)
in December 2008 when the base
index was restated to 100 were historical and
were not based on current
consumer expenditure patterns.
“We need to know what conversion
factors Zimstat used to get the weightings
on the components of the CPI
since when calculating the figures you need to
know how consumers have
adjusted to changes in circumstances,” said an
economist with a financial
institution.
Independent economists have always argued that the
reported CPI figures are
not fully reflective of the real situation on
ground. Yet the published
figures show that on a month-on-month comparison,
the inflation rate
declined to 0,19% in April from 0,43% in March,
indicating a slowdown in
price increases during the month.
“The
weighting of the CPI model seems to be a bit off the mark and therefore
needs to be re-calibrated to reflect the exact spending habits on consumer
goods and services so that the inflation figures reflect the exact increases
in the appropriate consumer consumption baskets,” said Brains Muchemwa an
economic analyst.
A consumer expenditure survey is usually
carried out when the inflation
index is restated so that the weightings on
the CPI components are adjusted
to give an accurate measure of the real
changes in general price levels.
At the moment there are indications
of a discrepancy on the weightings of
the CPI components which are not
reflective of the major drivers of
inflation in the current economic
scenario.
For instance CPI components like health with a weighting of
1,3%,
communication – 1% and education – 2,9% are surely underweight given
the
huge demand for such services in the economy.
The
telecommunications sector definitely has grown to be a major component
of
CPI given that the tele-density ratio has increased to 68% in 2011 since
the
advent of the mobile phones.
The education component is also
underweight given that almost every
household pays school fees and the
recent increases in school fees at the
beginning of the full term are
significant and should be reflected in the
CPI figures.
The
furniture, household equipment and maintenance’sweighting of 15,1% seems
to
be also out of line given that the demand of durable consumer goods is
currently low because of the low disposable incomes. Less people can afford
to buy furniture in this current economic scenario and placing a huge
weighting distorts the CPI statistics.
Muchemwa said: “A new
survey on consumer expenditure habits needs to be
conducted so that the
weighting of the CPI components gives a near correct
picture of consumer
behavior. Such components as education (2,9%),
communication (1%)and
household furniture and equipment (15,1%) seem to be
having inappropriate
weighting.”
“But it is the results of the comprehensive survey that
will be able to
assign the right weights,” cemented Muchemwa.
But
government through the ministry of finance has indicated an intention to
conduct an expenditure survey but to date nothing has been concluded, a
development that will see inaccurate inflation figures being
published.
There are also sections of the market who also feel the
figures are being
tempered with by government to create a rosy picture of
the economy to gain
political mileage and also to counter speculative
tendencies which fuelled
inflation in the hyperinflation
era.
Zimstat is a government run institution and statistical offices
vary in
their technical sophistication and ability to resist political
pressure.
Curbing inflation to single digits level is one of the top
priorities for
the inclusive government and the influence of government in
making sure the
figures remain within stated projections cannot be scuffed
off.
In the February edition of The Economist in the article Don’tlie
to me,
Argentina which sought to explain why Argentina’s figures were
excluded from
their published table of statistics, concerns of government
tempering with
the figures were raised.
The Economist reported
that the Argentine government debased INDEC one of
Latin America’s best
statistical offices so as to avoid bad headlines and
independent-minded
staff were replaced by self-described supporters of
President Cristina
Fernández de Kirchner.
“In an extraordinary abuse of power by a
democratic government, independent
economists have been forced to stop
publishing their own estimates of
inflation by fines and threats of
prosecution. Misreported prices have
cheated holders of inflation-linked
bonds out of billions of dollars,” read
The Economist.
“From this
week (12 February), we have decided to drop INDEC’s figures
entirely. We are
tired of being an unwilling party to what appears to be a
deliberate attempt
to deceive voters and swindle investors,” cemented The
Economist.
Finance minister Tendai Biti indicated that inflation
is projected to end
the year at around 4% but there are a number of factors
which can turnaround
the estimates with inflation ending heading
northwards.
Firming crude oil prices have resulted in prices of fuel
going up by 50%
since beginning of 2010 and this has a cascading effect to
all components of
the CPI since transportation is a common
factor.
Other factors include possible civil servants wage
increases which can
stimulate artficail demand and imposition of varied
duties on imported goods
is usually countered by general price increases by
retailers.
http://www.theindependent.co.zw/
Thursday, 17 May 2012
16:41
THE Anglican Church of the Province of Central Africa has started
buying
land to build new churches as the property wrangle with
ex-communicated
Bishop Nolbert Kunonga continues, reports the
Standard.
However, Kunonga threatened to take over the newly-built churches
saying he
does not care if they use “his” name.
“Assist them by telling
them that they should not build in the name of the
Harare diocese and
“Anglicans” because they would have built for me as the
law gave me custody
of the church and all its properties,” he said.
“Impress upon them
that they should change the name so they do not get
disadvantaged. They can
come up with a new name and re-register or else
their efforts will amount to
nothing but a waste of time because the law is
clear that they have no
church,” asserts Kunonga.
Strangely, instead of coming to the aid of
the Anglican Church, church
leaders were busy obsessing over the impending
visit of Nigerian prophet TB
Joshua.
They argued that prophet TB
Joshua’s teachings were of no help to the
country as they were “judgmental,
partisan and unorthodox”, the Herald
reports.
Ironically Zanu PF and
MDC-T officials frequent TB Joshua’s Synagogue Church
of All Nations in
Nigeria with Manicaland governor Christopher Mushowe being
the latest
attendee.
Evangelical Fellowship of
Zimbabwe president and spokesperson Goodwill Shana
said God should not be
used for partisan purposes.
“We think it is important to get (into
the country) people who can help the
country to move forward, not people who
are judgmental,” Shana said.
“People have a right to believe what
they want, but it is difficult to
believe a Word of God that comes on a
partisan basis,” he said.
And are we supposed to take church leaders
seriously who look the other way
when abuse is meted out to one of their own
while they mendaciously accuse
TB Joshua of being
partisan.
Pentecostal Assemblies of Zimbabwe leader Bishop Trevor
Manhanga said TB
Joshua should first pray for the “burning” Nigeria before
talking of
visiting Zimbabwe.
Talk about the pot calling the pot
black! A bit of advice to our church
leaders:“Why do you look at the speck
that is in your brother’s eye, but do
not notice the log that is in your
own?”
Manhanga has over the years been drifting into the Zanu PF camp
which is why
he doesn’t enjoy the public confidence he used
to.
Speaking of clueless leaders, MDC-T
Senator for Chikomo, Morgan Femai has
rightly received flak for saying that
women should always have bald heads,
shun bathing and dress shabbily to curb
the spread of HIV.
He also said HIV was spreading at an alarming rate
as men find it difficult
to resist attractive and well-dressed
women.
As if that was not daft enough, Femai went on: “Women have got
more moisture
in their organs as compared to men so there is need to
research on how to
deal with that moisture because it is conducive for
bacteria breeding. There
should be a way to suck out that
moisture.”
His utterances were not only an embarrassment to his party
but to the whole
nation as the international media picked it up saying they
represented
government policy.
Another MDC-T Senator, Sithembile
Mlotshwa, also said people should have sex
once a month and men should be
injected with drugs that reduce their libido.
She also called for prisoners
to be given sex toys to quench their sexual
needs.
Not to be
outdone, MP for Bulawayo East Thabitha Khumalo has said women must
keep
their husbands’ mistresses on a tight rein in order to “safeguard their
health”.
Where does the MDC-T get these legislators? Surely they
are more pertinent
issues to tackle. No wonder they call it “the party of
Sexellence”!
We are always amused
by Zanu PF youth secretary Absolom Sikhosana who only
seems to surface
during President Mugabe’s birthdays. The 60-year old
“youth” can always be
relied on to take sycophancy to new heights each
February.
Last
week he came out of his shell to address a press conference on the
hosting
of the World Federation of Democratic Youth general assembly at the
end of
the month.
Claiming to know what youths want, Sikhosana said as the
youths they were
fighting against imperialism.
“We are struggling against
imperialism, we want to find the future,”
Sikhosana said.
Flanked
by Zanu PF youth secretary for security, John Mushayi, and for
resettlement, Anastancia Ndhlovu, Sikhosana seemed undeterred that he was
the odd one out among much younger colleagues. Like his handler President
Mugabe, Sikhosana has joined the handiende bandwagon despite calls within
Zanu PF for him to step
down.
We ran a story in January
in which Zanu PF national and provincial youth
leaders called for Sikhosana
to resign and pave way for young blood.
However, Sikhosana then told the
Independent that he would not step down
saying only Mugabe, who appointed
him, can remove him.
He said his job was to lead and give the youth wing
“direction”.
“That is gross indiscipline by the youth if they said
that and these are the
kind of things they should desist from,” he
said.
“We are talking about issues that affect the welfare of the youths, not
tissues,” Sikhosana said in a rather lame attempt at a joke.
We are sure
that imperialism is not the major concern for the unemployed
youths roaming
the streets. The only “direction” Cde Sikhosana is giving the
Zanu PF youth
league is towards the dust-bin of
history!
Listening to the president’s
speech at the funeral of Edson Ncube earlier
this month, it was fascinating
to hear him provide a stirring rendition of
Rule Britannia, the British
patriotic anthem. His audience, needless to say,
looked bemused by this ode
to empire which only a handful would have known.
Mugabe used the song
to illustrate the depredations of colonialism. Children
were brought up in
his era to learn the words, he explained, remarking that
Zimbabweans, in the
words of the song’s exhortation, “never shall be slaves”.
It was an
interesting intervention given the hysteria in his party
surrounding the
constitutional debate and demonstrated that the president
still has his
faculties about him.
In this context we
were surprised by EU ambassador Aldo Dell’Ariccia’s
remarks in Brussels that
there had been “significant progress” and positive
direction in the
implementation of the GPA. As our colleagues at NewsDay
pointed out,
Dell”Ariccia’s view of the state of the GPA is not only
astounding but a
major misrepresentation of the reality on the ground.
“We don’t see a
positive direction but a dangerous path where the military
establishment in
this country has erected barriers by openly meddling in
politics and making
threatening noises against dissent,” NewsDay commented
on
Monday.
“The political roadmap as agreed under Sadc mediation has
become a quagmire
ruled by hawks in Zanu PF who are bent on disbanding the
constitution-making
progress and having elections on President Mugabe’s
terms,” the paper said.
It pointed to the
chaos in the voters’ roll and threats against the media. A
suborned police
force has disrupted freedom of assembly, it remarked.
It appears, we
might add, to be blind to Webster Shamu’s threats on World
Press Freedom Day
and Major-General Martin Chedondo’s intervention in
electioneering. The
MDC-T, whose presence in Brussels no doubt justified
Lady Catherine Ashton’s
positive spin on events, has done little or nothing
to support press
freedom. And what can be said about the broadcasting sector
in the same
deadening grip of the former ruling party.
The EU needs to wake up to
the plight of the people of Zimbabwe and stop
sending misleading and
emollient messages. And so long as the state media
remains captive to Zanu
PF, it is essential that the externally-based media
perform a national duty
in informing the listening public of what is
actually happening inside
Zimbabwe.
A useful bulletin from
Eddie Cross this week. He recently flew over Middle
Save estates in the
Lowveld and spoke of the utter desolation there.
“Just to confirm
that these people (Zanu PF) live in Never Never land an
80-year-old woman in
the leadership of Zanu PF took over a large functioning
conservancy last
week forcing the owners and their staff out of their homes
and depriving
them of a lifetime’s investment. She has already taken over
eight other
farms, all of which are now in varying degrees of degradation.
“I
flew over Middle Save estates last week and looked down and saw that,
apart
from the old Arda farms being leased by a private company, all the
farms
occupied by Zanu PF hangers on were derelict and empty –– not ever a
single
maize crop –– nothing.
“These were at one stage some of the most
productive farm properties in the
country. This year, after 12 years of land
reform, we will import 80% of our
food.”
That is the sort of
information the public are being deprived of by the
Zimpapers and ZBC grip
on the public media.
There will be “no
going back” on mining fees, Mines minister Obert Mpofu has
said. This comes
despite calls from the mining industry for the fees to be
reduced. Mpofu
believes lower fees will lead to speculative behaviour.
MPs on the
other hand argued higher fees would frustrate indigenisation.
MPs urged
government to be consistent in its declarations.
Guruve South MP
Edward Chindori Chininga who heads the Parliamentary
Portfolio Committee on
Mining said when government took the land released by
mining companies the
intention was to give the claims to indigenous
Zimbabweans.
“Our
understanding now is that the land has been given to a foreigner
again,”
Chindori Chininga said.
Mpofu should understand there is nothing
admirable about “no going back”. If
anything it reflects a stubborn lack of
flexibility that actually prevents
effective policy formulation. It has of
course mostly been used in regard to
land distribution where “no going back”
has become the mantra of those who
have taken more land than they are
entitled to. In particular it has become
a means of preventing the audit
mandated by the GPA.
Another
“pressure” group, Mushandi Munhu Workers’ Federation (MMWF), seems
to have
joined the trade union fray. This was after another Zanu PF-aligned
union,
the Zimbabwe Federation of Trade Unions (ZFTU), failed to make an
impact
after it split into three factions.
According to the Herald, May Day
celebrations were a damp squib as
infighting within unions resulted in low
attendances. Less than 1 000 people
turned up at Gwanzura Stadium where the
George Nkiwane-led Zimbabwe Congress
of Trade Unions faction held its
commemorations while about 400 people
attended the official Lovemore
Matombo-led ZCTU faction’s celebrations.
Despite being beefed up by
the MMWF, ZFTU’s commemorations were the most
thinly attended attracting
less than 100 people.
A visit to
post offices in Avondale and Mabelreign on Tuesday revealed no
new
computerised licence discs which we were told on Thursday, May 3, would
be
introduced the following Saturday. This was a world-class system, the
Herald
announced in an interview with the Zinara head of communication and
technology, Gift Kanotangudza. The new disc, he said, would be bar-coded and
encrypted with security features.
Well, you have to actually
produce the item before those features are of any
use. And staff in the two
post offices had “no idea” when the new forms
would be
available.
This gives weight to Muckraker’s theory that a group of
people sit down
every Monday to see what inconvenience they can cause the
public. You will
recall the number plates exercise. And we suspect there is
money to be made
somewhere down the line.
Let’s just scrap the
whole project and stop Zinara making a nuisance of
itself.
http://www.theindependent.co.zw/
Thursday, 17 May
2012 16:35
ALTHOUGH the economy grew by 9,7%, as measured by Gross
Domestic Product
(GDP), in the first quarter of 2012 it was growth from an
exceptionally low
base. It follows a 15-year period of marked economic
decline. Substantive
recovery of the economy is thus critically needed if
the prevailing high
unemployment is to be reversed. A key element for
achieving economic
recovery is the re-drawing of our fiscal policies. The
forthcoming mid-year
Budget review by Finance minister Tendai Biti is such
an opportunity.
Amongst the numerous changes which need to be
effected are:
l The reform of income tax rates and tax bands
applicable to individuals.
It is inhumane for government to continue
to impose taxes on incomes which
are below the poverty datum line (PDL).
Those who earn less than the PDL
are suffering immensely and barely able to
pay for the most basic needs.
Currently, the PDL for a family of six is
approximately US$550 per month.
Assuming that in most such
families there are two income-earners and more
often than not one being in
the informal sector income tax should only
become payable on incomes in
excess of US$330 per month. Whereas the current
income tax threshold is
pegged at $250. As a result government is worsening
the plight of many
Zimbabweans.
Government argues that the fiscus is, to all intents and
purposes, bankrupt,
and that revenue has to come from somewhere. This is
also accentuated by the
need to stem fiscal deficits with expenditure being
contained to actual
revenues hence the need to maintain the prevailing tax
threshold, tax bands,
and rates. However, this approach is an abdication of
government’s
obligation to ensure the economic wellbeing of the
populace.
Moreover, constructive revision of the taxes payable would
result in
substantial compensatory tax revenues. Enhancement of
individuals’ net
after-tax income accords the individuals greater spending
power. As well,
much of the additional spending will yield value added tax
and other
indirect taxes such as customs duties, whilst also increasing the
taxable
incomes of the enterprises benefitting from greater trade volumes as
a
result of greater consumer spending.
Added to this
enterprises will also benefit from the growth in trade volumes
thereby
realising greater taxable profits and employ more people; who will
also
become direct and indirect taxpayers.
Government can also foster the
creation of jobs within the economy by
according employers tax incentives
commensurate with the number of people
employed. The cost of those
incentives would then be funded by the tax
revenues received from those so
employed.
Another avenue to advance economic recovery is to motivate
new investment
into the economy. For instance government can accord new
ventures a
transitional period in which they are exempted from paying income
tax.
Examples of this approach are the export processing zones instituted by
government as well as the initiatives made by South Africa, Botswana, Israel
and other countries which gave tax relief and incentives to new investments.
The approach the government has taken in pursuing indigenisation and
economic empowerment also needs to be reviewed.
The transfer of
shareholding from non-indigenous shareholders to those who
are indigenous
should be exempted from capital gains tax. In addition, any
dividends payed
by enterprises to community share trusts, employee share
trusts and other
indigenous new shareholders should be exempted from
Withholding Tax. This
would help the recipients of the shares to expedite
their
payment.
Another avenue for the Finance ministry is to stimulate
exports. A growth
in exports would not only diminish Zimbabwe’s negative
balance between
inflows and outflows of money, but would contribute
materially to achieving
increases in volumes of production. The resultant
economies of scale would
enable local market price stability, thereby
reducing inflation. The
increased volumes would create employment and the
concomitant economic
benefits. A reintroduction of export incentives would
be both economically
and fiscally beneficial.
In a bid to protect
local industry from imports government imposed various
duties on many
commodities. However, the measures have proved to be grossly
ineffective
and, to some extent, prejudicial to Zimbabweans. The export
subsidies and
incentives Far East countries give their enterprises nullify
the duties
imposed by government.
The Finance ministry should address this
anomaly by further modifying the
customs duty regime. However, they should
recognise that some of the basic
commodities are not sufficiently produced
locally to meet consumer needs and
demand. Such commodities should not be
subjected to customs duties since
consumers would be
prejudiced.
Government should expedite the eradication of the
frequent and pronounced
delays in the clearance of goods at border posts.
On too many occasions
officials seize and impound goods on spurious grounds.
This is coupled by
the lengthy delays in resolving such
issues.
Such situations have a devastating impact on importers in
general and
manufacturers and traders in particular. The losses sustained
ultimately
impair the taxable incomes of the affected businesses, thereby
minimising
the minister’s tax revenues.
These are but a few of
the many measures which Biti needs speedily to
address, as a constructive
step towards accelerating Zimbabwe’s economic
recovery.
http://www.theindependent.co.zw/
Thursday, 17 May 2012
16:32
Elias Mambo
WHILE Zimbabwe’s re-engagement team with the
European Union (EU) was upbeat
about the possibility of the bloc lifting
sanctions after its trip to
Brussels last week, analysts have warned that
without meaningful reforms on
the ground it would still be difficult to
ensure the removal of the
restrictive measures.
Energy and Power
Development minister Elton Mangoma (MDC-T), Justice and
Legal Affairs
minister Patrick Chinamasa (Zanu PF) and Regional Integration
and
International Co-operation minister Priscillah Misihairabwi-Mushonga
(MDC)
led the re-engagement team in talks with the EU in the Belgian
capital.
Talks have been ongoing since 2009 as part of broad
efforts to implement the
Global Political Agreement (GPA) to restore
political and economic stability
before free and fair elections are
held.
Negotiations are going on within the framework and context of
the EU-Africa
Cotonou Agreement, Article 96, which says “political dialogue
concerning
respect for human rights, democratic principles and the rule of
law shall be
conducted within the parameters of internationally recognised
standards and
norms”.
“The parties may agree on joint agendas and
priorities. Benchmarks are
mechanisms for reaching targets through the
setting of intermediate
objectives and timeframes for compliance,” it
reads.
The EU slapped President Robert Mugabe and his top allies and
associated
companies who either owned, controlled or were linked to Zanu PF
with the
measures in 2002, citing rampant political violence and gross human
rights
violations which it said hindered the holding of free and fair
elections in
the country.
The targeted sanctions specifically
followed the expulsion of EU election
observer Pierre Schori, a Swedish UN
diplomat whom the group had designated
head of its proposed 150-strong team
for the disputed March 2002
presidential polls.
In defiance of
Zimbabwe’s demands that the EU’s team be part of that of the
African,
Caribbean and Pacific (ACP) countries, the European bloc dispatched
Schori
to Harare but government refused to accredit him, saying he could
only stay
as a “tourist”.
Zimbabwe also banned election observers from
Germany, Finland, Britain,
Denmark and the Netherlands, citing their alleged
bias against the
government, and further specified the joint ACP-EU team
should be led by an
ACP official.
Then Foreign Affairs minister,
Stan Mudenge, said the government regarded
the Swedish diplomat as a tourist
visiting the country, and ruled out
accreditation of the EU separate from
the specified joint ACP-EU team.
Prior to that, the EU and Harare had
been fighting over chaotic land
seizures, political repression and human
rights abuses ahead of the
election. Instead of further dialogue, Zimbabwe
formally declared a dispute
between the two sides under Article 98 of the
ACP-EU partnership agreement,
allowing it to seek independent
arbitration.
The EU retaliated with targeted
sanctions.
However, analysts say unless Zimbabwe fully implements the
GPA, which
tackles issues in EU-Africa relations, the Cotonou Agreement,
sanctions
would remain. Political analyst Charles Mangongera said
implementation of
the GPA was crucial to the removal of
sanctions.
“The key to Zimbabwe in normalising its relations lies in
government
tackling all outstanding issues in the GPA. That should be the
basis of
re-engagement with the EU,” he said.
“The critical thing
which needs to be assessed right now is whether the GPA
has delivered
democracy or not in Zimbabwe, otherwise there hasn’t been any
change in
political attitudes and no fundamental changes in behaviour of
those under
the targeted restrictions to warrant their removal.”
Another analyst,
Alexander Rusero, a Harare Polytechnic lecturer in Mass
Communication, said
Mugabe needed two things from the inclusive government,
namely legitimacy of
his presidency after the disputed June presidential
election run-off and
removal of sanctions.
The two MDC formations and Zanu PF agreed to a
raft of reforms, including
amending electoral and media laws and drafting a
new constitution, to pave
way for free and fair polls.
However,
work on the new charter has run in fits and starts with Zanu PF
being
accused of trying to frustrate the process to force an early election
under
the Lancaster House constitution.
Prime Minister Morgan Tsvangirai
has accused Zanu PF of stalling the reform
process, but maintains he would
not quit and continues to insist on reforms.
However, Rusero believes even if
there were no meaningful reforms in
Zimbabwe, the restrictive measures
should be lifted given that Zimbabwe now
has an inclusive
government.
“Though the EU is clear that Mugabe’s administration has
to deliver on the
reforms for it to consider lifting the restrictions, the
measures would not
achieve anything because the political dynamics have
changed since the
formation of GNU,” he said. “The EU has to note that it is
no longer about
Zanu PF but a government of national unity and this also
means holding free
and fair polls.”
Although Zanu PF has hailed
the re-engagement process, the EU has already
ruled out lifting the
measures, saying only free and fair elections could
change the
situation.
“The punitive measures were taken after taking into
consideration the
electoral situation and serious human rights abuses
committed in 2002,” said
the EU ambassador to Zimbabwe, Aldo
Dell’Ariccia.
“The EU has been very clear that these measures will be
lifted when credible
elections, where people can express their wishes
freely, as well as results
which are respected by stakeholders, have taken
place,” he said.
However, the EU diplomat said while Europe noted the
progress in Zimbabwe
since the formation of the coalition government in
2009, more needs to
happen.
Dell’Ariccia also said only the
elimination of the causes that led the EU to
impose the sanctions would lead
to the full removal of these measures.
Political commentator Ernest
Mudzengi argues Zanu PF lacks the political
will to implement reforms to
facilitate free and fair elections. “Zanu PF is
by no means doing better in
relation to political reforms and neither is it
doing any better in terms of
its commitment to implementing reforms,” said
Mudzengi.
“This
push by Zimbabwe shows the sanctions are indeed biting the individuals
on
whom they have been imposed.”
International Crisis Group’s Trevor
Maisiri stated that Zanu PF has been
manipulating the restrictions issue
politically and using it for propaganda
purposes as part of its efforts to
frustrate reforms and mobilise against
perceived internal and external
enemies.
“Zanu PF argues that reform is contingent on the removal of
sanctions and
accuses the MDC-T of reneging on GPA commitments to facilitate
this,”
Maisiri said. “It is true that there are no meaningful reforms on the
ground
that can persuade the EU to revise the restrictions but lifting these
measures can also be a measure to build confidence or motivate political
parties to move forward, although the lifting has to be
progressive.”
National Constitutional Assembly chairperson Lovemore
Madhuku concurred,
saying he believes the EU has to act so as not to
continue giving Mugabe a
pretext to undermine or block
reforms.
“Nothing on the ground has really changed politically but
the EU should
remove the restrictions so that it does not continue to give
Mugabe a
voice,” said Madhuku. “The GNU warrants the removal of these
measures as
well.”
However, deputy Justice and Legal Affairs
minister and MDC-T senator Obert
Gutu says the inclusive government should
adopt reforms to warrant the
lifting of restrictions.
“There
should be reciprocity, meaning the GNU should proceed to fully
implement the
outstanding issues of the GPA, which include media reforms and
repealing of
the offending provisions of Posa and Aippa, amongst other
issues. Then and
only then, should these restrictive measures be lifted.”
http://www.theindependent.co.zw/
Thursday, 17 May 2012
16:27
Blessing-Miles Tendi
ON April 29 2012, I participated in a
panel discussion with Simon Bright,
director of the film Robert Mugabe ...
What Happened?, and McDonald
Lewanika, the director of Crisis Coalition in
Zimbabwe (CCZ). This followed
the showing of Bright’s latest film (Robert
Mugabe ... What Happened?) in
the Ultimate Picture Palace in Oxford.
The
event was sold out. Extra chairs had to be wheeled in to accommodate a
steady flow of eager viewers. Another reminder of how the story of Mugabe
the man continues to captivate the British public.
“Were this a
documentary about any other African leader or the neglected
crises in the
Democratic Republic of Congo (DRC) and Madagascar, would the
public interest
have been this similar?” I wondered to myself. I think not.
Mugabe is
the British media’s bogeyman for everything that is wrong with
Africa and
one can never escape the naked reality that the fallout from Zanu
PF’s
violent eviction of white farmers in Zimbabwe from 2000 onwards, many
of
whom were British descendants, continues to attract a disproportionate
amount of international focus compared to other more severe crises in the
DRC and Madagascar.
The film relies on interviews with the late
Edgar Tekere, Geoff Nyarota,
Simba Makoni, Lovemore Madhuku, John Makumbe,
Wilfred Mhanda, Trevor Ncube,
Elinor Sisulu, Dennis Norman and Lovemore
Matombo to paint what Bright has
billed as “a definitive account” of
Mugabe’s life.
The film depicts Mugabe’s role in Zimbabwe’s
successful liberation and
development, along with his Machiavellian
retention of power, and suggests
that his leadership showed great promise in
its infancy, but deteriorated
over time. We are told, at the end, that
Mugabe’s legacy is one of genocide.
To be fair, when juxtaposed
against the Mugabe and the White African
documentary, which managed to scoop
a British Independent Film Award (2009),
was nominated for a Bafta (2010)
and shortlisted for an Oscar award (2010),
Robert Mugabe ... What Happened?
is a far more bearable watch. It also
showcases never-before-seen archival
footage and the makers are to be
commended for conducting several original
interviews. But that is where it
ends.
The film has many
problems.
The vast majority of the aforementioned commentators on
Mugabe have observed
him from a distance. They have no intimate knowledge of
the man.
Consequently, the likes of Sisulu, Makumbe and Madhuku bring little
by way
of substance towards understanding Mugabe. Tekere and Norman once
worked
closely with Mugabe, but they were not sufficiently probed on
meaningful
matters. For instance, Norman’s only real contribution is the
retelling of
how, after the first cabinet meeting of the independent
Zimbabwe government,
Mugabe instructed cabinet members who were not dressed
in suits to dress
appropriately. Members of cabinet always wore suits after
that first
encounter, Norman tells us. “And so what?” I exclaimed to myself
during the
showing.
The core problem with the film, however, is
that the question it poses —
what happened to Mugabe’s promise? — can be
asked of almost all the figures
it relies on for answers. Despite being a
long-time civil society activist
for democratic constitutionalism, Madhuku
unilaterally amended the National
Constitutional Assembly (NCA) constitution
in 2011 in order to retain
leadership. Lovemore Matombo and George Nkiwane
are currently locked in a
power struggle over control of the Zimbabwe
Congress of Trade Unions (ZCTU).
The handiende or angihambi from power
syndrome is not just about Mugabe and
Zanu PF evidently.
Makumbe,
a University of Zimbabwe lecturer, has long since abandoned
academic
responsibility as he made clear to me in 2005: “There is no such
thing as
intellectual neutrality in Zimbabwe. You are either for the
establishment or
against it. I am not a saint. I definitely refuse to be a
saint. John
Makumbe is MDC. So am I as bad as (Tafataona) Mahoso?
Definitely!”
And for all Simba Makoni’s criticisms of Mugabe’s
leadership in the film, it
goes without saying that he was a member of Zanu
PF from 1980 to 2008.
Makoni bears collective responsibility for bad
policies in those years.
These examples lead me to the essence of my
argument, which is that in
asking what happened to Mugabe, we are asking the
wrong question. What we
ought to ask is what happened to Zimbabwe’s
political culture? What is it
about our political culture and values that
debases leadership? Zimbabwe’s
problems are much bigger than Mugabe. By
focusing on him, we miss the crux
of the matter.
The words of the
late Masipula Sithole in 2000 are worth recalling here:
“The fundamental
crisis our country is facing today is a crisis of political
values. Should
we manage to fix the economy without revisiting the values
crisis, we are
building on quick sand.”
I want to close by raising three last
points. First, it is bad film-making
for Bright to demonise Mugabe in the
way that he does. Mugabe’s statement
that “if redistributing land from
whites to blacks makes him a Hitler in
Western eyes, then let it be” is
deliberately used out of context in the
film in order to portray Mugabe as
Hitler’s disciple. I challenged Bright on
this point during the
post-screening panel discussion. He was guilty as
charged and could not
reply.
Second, we are told at the end of the film that Mugabe’s
legacy is one of
genocide. And yet there has never been genocide in
Zimbabwe. Gukurahundi,
Murambatsvina and the March to June 2008 violence all
violated human rights,
but to label them genocide is to banalise the term
into a validation of
every kind of victimhood.
Lastly, to further
move beyond Mugabe, we need to understand the motives and
calculations of
the various men who built Mugabe up. Why did Rex Nhongo
(Solomon Mujuru)
ditch Zipa comrades such as Mhanda in favour of actively
supporting Mugabe’s
rise to power in 1976? What did Mugabe’s colleagues in
detention in
Sikhombela — such as Tekere and Enos Nkala — see in him that
they did not
see in themselves to the degree that they worked so closely
with Mugabe and
backed him to the hilt?
Understanding these men, their relationships
with Mugabe and the structures
out of which they arose will tell us much
more about Mugabe’s leadership,
where Zimbabwe has come from and where it is
headed.
Blessing-Miles Tendi is a lecturer in African History and
Politics at the
University of Oxford and author of Making History in
Mugabe’s Zimbabwe:
Politics, Intellectuals and the Media.
http://www.theindependent.co.zw/
Thursday, 17 May 2012
16:23
BLESSING-MILES Tendi begins his review of my film Robert Mugabe …
What
Happened? by criticising the choice of Mugabe as an African villain
when
there are worse African villains to be found. Of course, he is right,
but I
chose the subject that interests me.
There are already films on
some who led Africa badly (Mobutu Sese Seko,
Leopold II), but Mugabe is a
fascinating subject who, as a fellow
Zimbabwean, means something to me. I
agree with Tendi that there is a
special market for the film in Britain
because of its former colonisation of
Rhodesia. I even agree with his
assertion that Britain has made Mugabe a
“bogeyman for everything that is
wrong with Africa”.
However, to reduce this to misplaced sympathy for
white farmers rather than
to an interest in what has actually happened in
Zimbabwe under Mugabe’s
leadership is to misjudge the complexity of both
Britain and Zimbabwe.
Despite sell-out screenings around Britain,
there is no British money in
this production, whereas French, German and
South African funds have been
forthcoming. A tour of German cinemas has been
requested and cinemas showing
the film have sold out in Amsterdam, Brussels,
Cape Town and Johannesburg
and currently New York. It seems to be selling
out wherever it goes.
In fact, the film spends very little time
lamenting the fate of white
farmers and a great deal more describing the
fate of black opposition voters
and the mechanisms of government. If Tendi’s
opinion that the film fills
cinemas with British people whose sympathies lie
with dispossessed white
farmers is correct (this has never actually been
reflected by any of my
audiences) — this is one of the audiences whom I want
to enlighten about the
real facts.
I took an early decision that
this would be a film about what had happened
under Mugabe’s leadership
rather than a psychological portrait of the man —
which could never have
been more than guesswork.
Interviewees who had experienced Mugabe’s
reign were asked about this
history and answered in different ways. Tendi
finds fault with many of them.
Some, like Elinor Sisulu, John Makumbe and
Lovemore Madhuku, he claims, are
too distant from Mugabe to have a useful
view. Is closeness a vital
qualification to be allowed to
speak?
These three have been victims of Mugabe’s repressive
machinery and have
observed him closely. Add to these other names Tendi
omits from his list:
Geoff Nyarota whose Daily News publication was bombed;
Paul Themba Nyathi, a
Zapu central committee member and founder member of
the MDC; and more
particularly the deliberately nameless Ndebele victims of
Gukurahundi
violence, and later the female victims of Zanu PF youth
violence. Distant or
not, they have a right to speak about their
experiences.
Where I’ve interviewed those whom Tendi feels were
sufficiently close, he
accuses me of inadequate probing. He rubbishes Dennis
Norman’s anecdote
about Mugabe’s demand for cabinet ministers to wear
appropriate clothing. I
included this anecdote because it is, in fact, very
telling: Mugabe had high
ideals, he placed a value on authoritarian looks
that served him well and he
wanted to be taken seriously by the Western
world — unlike, for example, the
military uniforms of other African
leaders.
Tendi also chooses to overlook Norman’s comments on the
success of Zimbabwe’s
first decade and in particular on the success of the
first resettlement
programme. Where Tendi claims that despite his closeness
to Mugabe, Edgar
Tekere adds nothing of substance, for most viewers he
perfectly illustrates
the arc of the film, from his idolisation of Mugabe
when he first knew him
in the 1960s to his later disillusionment with
Mugabe’s one-party state and
corruption 20 odd years later.
Tendi
also ignores the testimony of the man who perhaps was closest of all
to
Mugabe — Lawrence Vambe, a family relative who attended the same school
as
Mugabe, who knew him all his life and worked for him throughout the
1980s.
Lastly, he completely fails to notice Mike Auret’s
trenchant comments about
Mugabe’s early success followed by precise details
of the genocide in
Matabeleland and his cutting comments on the Congo
expedition, some of the
most telling in the whole film.
This is a
film about Mugabe, but instead of looking at the charges the film
makes
about his leadership, Tendi ducks them by rubbishing the witnesses.
Tendi’s
list of the bad points about certain of the witnesses does not
necessarily
make them unreliable, and I would answer “two wrongs do not make
a
right”.
In any case, there are large sections of the film where
Mugabe speaks for
himself — an audience does not have to rely solely on
witnesses. Tendi
seizes on only one of these — where a quote is used out of
context. He is
right, as I agreed at the panel, but had the sound quality
permitted me to
use the quote in its entirety, it would have been even more
damning.
Tendi relates the actual quote thus: “If redistributing land
from whites to
blacks makes him a Hitler in Western eyes, then let it be.”
In fact, the
whole quote runs: “I am still the Hitler of the time. This
Hitler has only
one objective: Justice for his people, sovereignty for his
people,
recognition of the independence of his people and their rights over
their
resources. If that is Hitler, then let me be Hitler tenfold. Ten
times, that
is what we stand for.”
Tendi contends that “in asking
what happened to Mugabe, we are asking the
wrong question. What we ought to
ask is what happened to Zimbabwe’s
political culture? … Zimbabwe’s problems
are much bigger than Mugabe. By
focusing on him, we miss the crux of the
matter”. It is precisely the
political culture led by Mugabe on which the
film focuses that has caused
the problems Tendi does nothing to
elucidate.
At the screening, Tendi referred vaguely to the mess of
political culture in
a strange echo of Mugabe’s words in the film, where he
says of political
violence “that’s how it is in Africa”, as if, like some
neo-colonial
commentator, there is something ineluctable in the African air
that drives
African leaders to political violence.
There is
nothing mysterious about the process. Political violence worldwide
is
ordered by politicians bent on staying in power: Slobodan Milosevic,
Hitler,
the generals in Argentina. The film shows Mugabe directly
threatening and
carrying out violence against his population, creating a
political culture
where violence rules, yet Tendi disputes my use of the
word “genocide” by
claiming that while Gukurahundi, Murambatsvina and the
March to June 2008
violence all violated human rights, “to label them
genocide is to banalise
the term into a validation of every kind of
victimhood”.
Finally,
he raises some questions about the late ‘Rex Nhongo’ (Solomon
Mujuru),
Tekere and Enos Nkala, on the grounds that “understanding these
men, their
relationships with Mugabe and the structures out of which they
arose, will
tell us much more about Mugabe’s leadership, where Zimbabwe has
come from
and where it is headed”. They are good questions and we wait for
Tendi’s
theories on these points, and for someone to make a film about
them.
Meanwhile, go and see the Robert Mugabe … What Happened? And
judge for
yourself!
Simon Bright has directed a number of
films in and around his native
Zimbabwe, including the recent Robert Mugabe
... What Happened? He is also
the director of the Afrika Eye film festival
in Bristol. E-mail:
brunel17@me.com
