The ZIMBABWE Situation
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Zimbabwe High Court to hear case against deportation of trade unionists

Zim Online

Fri 19 May 2006

      HARARE - The High Court will on Friday hear an urgent application by
the Zimbabwe Congress of Trade Unions (ZCTU) seeking the court to bar
immigration authorities from deporting foreign delegates coming to attend
the union's congress which began in Harare this morning.

      ZCTU lawyer Alec Muchadehama said the application would be heard at
11.30 am today after the Zimbabwean authorities on Wednesday deported two
Norwegian trade union officials Nina Mjoberg and Alice Siame, while a
Congress of South African Trade Unions (COSATU) official, Jani Mhlangu, was
barred from entering Zimbabwe.

      All the three foreign trade unionists were on a list of international
trade union officials invited to the ZCTU congress and who the government
had said it would allow into the country.

      Muchadehama said: "We have made an urgent application for a general
interdict to stop the Minister of Home Affairs (Kembo Mohadi), the Minister
of Public Service Labour, and Social Welfare (Nicholas Goche) and the Chief
Immigration Officer (Elasto Mugwadi) from deporting the invitees of the
ZCTU.

      "If there are indeed valid reasons for the invitees to be deported, we
want the respondents to give sufficient notice and also want the invitees to
be given an opportunity to make representations to the authorities upon
being served notices of deportation."

      In an affidavit to court, the labour body said it had received several
calls from invited guests who now feared coming to Zimbabwe unsure whether
they would not be thrown out by immigration officials on arrival.

      Meanwhile, the government on Thursday appeared to have finally decided
to allow the ZCTU's international guests into the country with 10 foreign
unionists who arrived yesterday permitted into the country.

      Many more foreign delegates to the labour congress were expected to
arrive by late evening flights.

      The Harare authorities have in the past denied entry to foreign trade
unionists whom they accuse of working hand in hand with the ZCTU to
undermine the government's authority.

      The government accuses the ZCTU, a strong ally of the main opposition
Movement for Democratic Change party, of pushing a political agenda to oust
Mugabe from power.

      Two separate delegations from the Congress of South African Trade
Unions have also been kicked out of Zimbabwe over the past two years. -
ZimOnline


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Proposed war vets salaries could trigger fresh financial crisis in Zimbabwe

Zim Online

Fri 19 May 2006

      HARARE - Analysts have warned that Zimbabwe - already grappling its
worst ever economic crisis - could be headed for a repeat of the 1997
financial crisis triggered by unbudgeted pay-outs to war veterans if the
government presses ahead with plans to pay salaries to the ex-combatants.

      Almost nine years ago, in August to be precise, President Robert
Mugabe bowed to pressure from the Zimbabwe National Liberation War Veterans
Association (ZNLWVA) to pay them for their contribution to the fight for
independence.

      The government responded by awarding the freedom fighters, then headed
by Chenjerai Hunzvi, hefty gratuities of $50 000 each as well several
allowances.

      The impact of the unbudgeted payouts - which triggered an
unprecedented crash of the Zimbabwe dollar on November 14, 1997 - has to
some extent largely shaped the course of Zimbabwe's economy over the past
nine years.

      A four-member committee set up by Mugabe last year to restructure the
ZNLWVA has again recommended hefty allowances and benefits for the former
freedom fighters.

      The committee led by former Cabinet minister Dumiso Dabengwa and
comprising retired army generals Solomon Mujuru and Vitalis Zvinavashe,
recommended that war veterans be incorporated into the Zimbabwe National
Army structures.

      Dabengwa was this week quoted by the Press as having told war veterans
at a meeting in the southern Lupane district that the recommendations by his
committee were as good as adopted by the government because they had already
been approved by the ruling ZANU PF party central committee, as well as the
party's inner politburo cabinet.

      "What is only left are a few amendments to the War Veterans Act. Once
approved by parliament, I can assure you that your welfare is going to
greatly improve," Dabengwa said.

      Analysts this week warned that another round of careless spending by
the government could spell disaster for a country still smarting from
foreign currency shortages, high government borrowing and company closures,
which they say could all be traced back to that fateful decision in August
1997.

      "It is very dangerous for the government to do such a thing,
particularly at a time when the country can't afford further increases in
expenditure," said independent economic analyst John Robertson.

      The analysts said that through such promises the government was
unwittingly sowing the seeds of discontent, both among the war veterans and
workers, particularly civil servants who also want the authorities to do
something about their living conditions.

      "As if the country has not suffered enough from its poor policies, the
government continues to make such careless promises to people whose sole
occupation is to feed off the taxpayer," said an economist with a Harare
commercial bank, who did not want to be named for professional reasons.

      Civil servants have been awarded salary increments of up to 300
percent, with the majority of them now earning about $30 million a month.
This is far below the poverty datum line of around $41 million a month.

      If the Dabengwa committee recommendations go through, it will mean
that serving junior army officers will now be earning less than a war
veteran staying at home.

      Under the proposed benefits structure, war veterans will be entitled
to $90 million a year for each child in secondary school or at a tertiary
institution, and $20 million for each child in primary school.

      "The proposed payments will be the final death-knell for the economy
in that they will exert greater pressure on government debt, push up the
rate of inflation and the cost of borrowing will shoot over the top," he
warned.

      The government's domestic debt was pegged at Z$15.7 trillion at the
end of March while annual inflation was perched at a record-busting 1 042.9
percent in April. Minimum lending rates are hovering around 1 000 percent. -
ZimOnline


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Zimbabwe vice-president accuses hospitality sector of sabotaging economy

Zim Online

Fri 19 May 2006

      MASVINGO - Zimbabwe Vice-President Joice Mujuru on Thursday lashed out
at the country's hospitality sector labelling members of the industry
"thieves" who were sabotaging the economy.

      Mujuru made the remarks as she officially opened the Hospitality
Association of Zimbabwe (HAZ) national conference in Masvingo town, about
260km south of the capital Harare.

      "Let met tell you openly that some of your members are thieves who
conceal foreign currency. Corruption within your sector is rampant. We have
seen of late that the industry has thieves who steal money everyday," she
told the stunned delegates.

      Several lodge and hotel operators in Zimbabwe have been convicted over
the past few years for contravening the Foreign Exchange Control Act by not
remitting all or part of their hard cash earnings to the Reserve Bank of
Zimbabwe.

      Zimbabwe is in the grip of a severe foreign currency shortage after
President Robert Mugabe wrecked the agricultural sector, the country's
biggest foreign currency earner, through his seizure of white-owned farms
for redistribution to landless blacks six years ago.

      Another top foreign currency earner, the tourism sector, is also in
the doldrums as tourists shun the country because of political violence and
repression largely blamed on militant supporters of Mugabe and his ruling
ZANU PF party. - ZimOnline


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Zimbabwe political crisis floored Nations Cup bid

Zim Online

Fri 19 May 2006

      HARARE - Political instability and an unprecedented economic recession
cost Zimbabwe its bid to host the 2010 African Nations Cup tournament,
ZimOnline has gathered.

      A source who attended the bidding presentation in Cairo on Sunday said
in an interview yesterday that Zimbabwe lost the bid before they could even
make a presentation because of what is happening in the country.

      "We were briefed by some senior officials at the Confederation of
African Football (CAF) that we stood no chance because of a combination of
factors which include both the economic and political situation in the
country.

      "It is clear that in terms of infrastructure, Zimbabwe is better
placed than countries like Angola and even Nigeria but they decided to boot
us out at the very first hurdle.

      "CAF officials had a number of concerns about Zimbabwe. Firstly the
rate of inflation is going up on a daily basis. For a country to host the
Nations Cup, it must be stable.

      "The CAF delegation wondered whether the country would still be having
enough electricity by the time 2010 comes. The country is experiencing
shortages all over the show and football officials could not take the risk
by giving Zimbabwe a chance," said the source.

      Eight bids were presented but only four from Nigeria, Angola, Libya
and a joint bid by Equatorial Guinea and Gabon were accepted.

      Zimbabwe is in the grip of a severe economic recession described by
the World Bank last year as unprecedented for a country not at war. Food,
fuel and foreign currency are all in short supply with critics blaming the
crisis on mismanagement by President Robert Mugabe. - ZimOnline


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Zimbabwean churches challenge ban on home demolition prayers

Zim Online

Thu 18 May 2006

      BULAWAYO - Churches in Zimbabwe's second biggest city of Bulawayo on
Thursday filed an urgent application at the High Court to force the police
to lift a ban on a prayer meeting and a march on Saturday to mark last
year's controversial home demolition campaign.

      The churches, which filed the court application through their lawyer
Kucaca Phulu, want the High Court to declare the police ban illegal and also
bar the police from interfering with the planned march and prayer meeting on
Saturday.

      A High Court judge is expected to hear the application on Friday.

      The churches also said they are exempt from Section 24 of the Public
Order and Security Act (POSA) which requires that any organisation that
intends to hold public meetings should notify the police in advance.

      "Churches in Bulawayo seek a court order that we are exempt from
Section 24 of the Public Order and Security Act and the letter of the
respondent dated 16 May 2006 does not have the effect of taking away that
right.

      "Further we seek a declaration that we are free to proceed with our
march and the respondent should not interfere with it," reads part of the
court application.

      The police on Tuesday ordered the Zimbabwe Christian Alliance (ZCA)
which brings all churches in the city to cancel the planned procession that
would have seen about 15 000 people marching from Makokoba's working class
suburb into the city centre about five kilometers away.

      Under the government's tough security laws, Zimbabweans are banned
from gathering in groups of more than three people to discuss politics or
hold political demonstrations without first seeking clearance from the
police.

      But churches are exempt from the requirement.

      "Although we are exempt from having to notify the police of any
meeting and processions we hold, we advised the police of our intended
prayer march on the 20th May 20006 but however on the 16th of May the
respondent summoned us to his offices where together with other people
discussed issues that had nothing to do with our churches or the
application," reads the application.

      ZCA spokesman, Hussein Sibanda said the planned march and prayer
meeting on Saturday had nothing to do with politics but was a bona fide
religious activity.

      Civic groups on Tuesday began commemorating the home demolition
exercise by touring various suburbs where police bull-dozers razed backyard
cottages and houses in a campaign President Robert Mugabe said was necessary
to smash crime and rid cities and towns of squalor.

      The campaign left at least 700 000 people homeless and directly
affected another 2.4 million people, according to a damning United Nations
report. - ZimOnline


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100 Percent Bread Price Hike Looming



The Herald (Harare)

May 18, 2006
Posted to the web May 18, 2006

Harare

THE price of bread is set to go up by more than 100 percent in the next two
months due to the shortage of raw materials, the Bakers' Association of
Zimbabwe has said.

The bakers want a loaf of bread to cost around $200 000 up from $85 000
unless Government intervenes and imports wheat on behalf of millers. But the
Minister of Industry and International Trade, Cde Obert Mpofu, immediately
ruled out the planned increase until "full and exhaustive" consultations
have been carried out.

"There has not been any change in the price of wheat sold to the wholesalers
so we will not entertain any request in that regard until there is a
dramatic change in the supply chain," he said yesterday afternoon by
telephone. "As you know bread is a controlled commodity and we recently
increased the price, so we cannot have another increase so soon," he said.
BAZ chairman Mr Burombo Mudumo claimed that there was a shortage of flour on
the market and that bakers were now importing the commodity. Mr Mudumo said
the cost of imported flour was double that charged by local millers and
bakers therefore had no option but to increase the price of bread to keep
the indus try viable.

"A tonne of imported flour costs $120 million while locally it costs $50
million. Therefore, as bakers we have to increase the price of bread to save
the industry from collapsing," he said. He urged the Government to speed up
the operations of the Price Monitoring Commission so that it gazettes the
price of bread rather than imposing price controls. In view of the
hyperinflationary environment in the country, he said, prices of goods were
constantly rising and bread was no exception. "We are calling upon the Price
Monitoring Commission to be operationalised soon because it will include
representatives from industry. We cannot have a situation where the
Government gazettes the prices of goods," he said.

"Prices of goods are going up almost on a daily basis, flour included, but
when bakers increase the price of bread there is an outcry. There is no way
the price of bread can stabilise in a hyperinflation environment like ours,"
said Mr Mudumo. The price of bread ha s risen from $45 000 to $60 000 and to
$85 000 since the beginning of the new year. The general public backed the
State's stance.

"At $200 000 the price is too high and hence we will not afford bread. This
is disappointing as bread is a basic foodstuff to many. The Government must
intervene and assist consumers as most bakeries and retailers want to
capitalise at the expense of consumers," said Mr Daniel Siziba. Mrs Lydia
Ndlovu said the proposed price was "shocking". "The price of mealie-meal is
going down because the maize is in sufficient supply. The same should be
done with wheat. Reducing imports will also curb an increase in prices," she
said.

Others said recent price increases were not in line with the salaries they
are getting and suggested that Government maintain the present price for a
considerable time. The Government has set aside 110 000 hectares for the
winter wheat crop this year, with each hectare expected to produce five
tonnes.


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Mugabe turns up heat on foes over protest fears

Reuters

Thu May 18, 2006 7:13am ET

 By Cris Chinaka
HARARE (Reuters) - Zimbabwe security forces have banned marches and detained
critics in a crackdown designed to derail possible anti-government protests
fueled by a deepening economic crisis, rights group said on Thursday.

The main opposition Movement for Democratic Change (MDC) has warned
President Robert Mugabe to brace for "a winter of peaceful democratic
resistance" against his 26-year rule.

Mugabe in turn threatened MDC leader Morgan Tsvangirai, saying any effort to
force him out of power would be "dicing with death". Security forces have
been have been on high alert for political trouble since February.

But this week activists say security forces turned up the heat.

Police banned street marches and prayer meetings planned by some churches to
mark the plight of thousands of people left homeless by a government
crackdown on slums a year ago.

Rights groups said on Thursday dozens of activists and trade union officials
had either been summoned by police or warned by Central Intelligence
Organization (CIO) operatives against organising anti-Mugabe demonstrations.

John Makumbe, a university lecturer and prominent Mugabe critic, was
detained by police for about five hours on Wednesday, apparently for helping
rights groups draw up a program to commemorate the slum demolitions.

"A number of people have been questioned, and are being intimidated around
the country, from civic society, the MDC and anyone suspected that they
could involved in organising activities critical of the government," said
Itai Zimunya of Crisis in Zimbabwe Coalition.

Both chief police spokesman Wayne Bvudzijena and MDC spokesman Nelson
Chamisa were unavailable for immediate comment.

PUBLIC FRUSTRATION

A Zimbabwe Congress of Trade Union (ZCTU) official said the police action
suggested they believed the MDC and allied civic groups were close to
launching anti-government protests.

"I think they are nervous and all that is happening now is part of the
pressure to forestall any planned or spontaneous demonstrations," he said.

Analysts believe that co-ordinated and peaceful demonstrations across
Zimbabwe could force Mugabe to agree to talks about the crisis in the
southern African country.

The ZCTU was due to hold an annual congress at the weekend likely to focus
on workers' demands for a minimum monthly wage matching Zimbabwe's poverty
line, currently at U.S.$405.

Political analysts say although Zimbabweans have largely been cowed by
Mugabe's use of riot police to crush earlier street protests, a crumbling
economy has increased public frustration with the government and the risk of
riots.

Riot police have been camped at a square in the capital Harare's city center
which has been the venue of protest rallies in the last few years.

The country is wrestling with shortages of food, fuel and foreign currency,
as well as with unemployment of over 70 percent and the highest inflation
rate in the world not topping 1,000 percent.


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Zimbabwe arrests 100 in new crackdown on opposition

Reuters

      Thu May 18, 2006 4:45 PM GMT

By Cris Chinaka

HARARE (Reuters) - Zimbabwe police arrested about 100 people demonstrating
for political reforms on Thursday in a new crackdown which critics say is
designed to deter possible wider anti-government protests.

Security forces have banned marches, detained critics and stepped up an
intimidation campaign out of fears that government opponents were about to
launch a wave of protests against President Robert Mugabe, rights groups
said.

The main opposition Movement for Democratic Change (MDC) has warned Mugabe
to brace for "a winter of peaceful democratic resistance" against his
26-year rule.

Mugabe, in turn, has threatened MDC leader Morgan Tsvangirai, saying any
effort to force him out of power would be "dicing with death".

Security forces have been have been on high alert for political trouble
since February and have turned up the heat this week, activists say.

On Thursday, about a dozen police halted a march and arrested some 100
members of the pressure group National Constitutional Assembly (NCA),
including several old women, who were marching to press for constitutional
reforms.

A Reuters correspondent saw police with batons force the marchers to sit
down before they reached the city centre, and then cart them in trucks.

Rights groups said dozens of activists and trade union officials had either
been summoned by police or warned by Central Intelligence Organisation (CIO)
operatives against organising anti-Mugabe demonstrations.

"A number of people have been questioned, and are being intimidated around
the country, from civic society, the MDC and anyone suspected ... of)
organising activities critical of the government," said Itai Zimunya of
Crisis in Zimbabwe Coalition.

Both chief police spokesman Wayne Bvudzijena and MDC spokesman Nelson
Chamisa were unavailable for immediate comment.

PUBLIC FRUSTRATION

A Zimbabwe Congress of Trade Union (ZCTU) official said the police action
suggested they believed the MDC and allied civic groups were close to
launching anti-government protests.

"I think they are nervous and all that is happening now is part of the
pressure to forestall any planned or spontaneous demonstrations," he said.

Some analysts believe that co-ordinated and peaceful demonstrations across
Zimbabwe could force Mugabe to agree to talks about the crisis in the
southern African country.

Political analysts say that although Zimbabweans have largely been cowed by
Mugabe's use of riot police to crush earlier street protests, a crumbling
economy has increased public frustration with the government and the risk of
riots.

Riot police have been camped at a square in Harare's city centre, the focus
of protest rallies in the last few years.

The country is wrestling with shortages of food, fuel and foreign currency,
as well as with unemployment of over 70 percent and an inflation rate
topping 1,000 percent.

The World Bank says Zimbabwe, whose gross domestic product has contracted by
40 percent over the last eight years, has the fastest-shrinking economy
outside a war zone.


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Mugabe appoints former top military officers to run NRZ



      From Themba Nkosi in Bulawayo
      18 May 2006

      Workers at the National Railways of Zimbabwe, NRZ, have complained
about what they call the militarisation of the parastatal which is the
largest employer after government.

      According to railway union officials and workers, the government has
been deploying retired army officers and independence war veterans to run
the parastatal since the beginning of the year.

      The officials who spoke on condition that they were not identified,
told us that most of the managerial positions at the parastatal have been
taken over by the soldiers and war veterans. The workers complained that the
army officers have no experience in running such a big institution like the
Railways.

      'They are simply there as eyes and ears of the government and Zanu
(PF). We are no longer free to discuss social issues because when you turn
to your left you see an army officer. If you turn to your right, there is a
war veteran watching you,' said a female security officer.

      The majority of the security guards at the Railways are now former
guerillas loyal to the ruling party Zanu (PF). One manager said government
started deploying army officers after it accused some of the managers of
being sympathetic to the opposition MDC party.

      Some of the senior MDC leaders in both factions were leaders of the
railways union.The two vice-presidents of both factions of the MDC,
Thokozani Khuphe of the Tsvangirai faction and Gibson Sibanda of the
Mutambara faction were senior officials of the railways union and the
Zimbabwe Congress of Trade Unions.

      The new railways general manager and chairman of the board of
directors Douglas Nyikayaramba are both retired army officers. Nyikayaramba
is former chairman of the Zimbabwe Electoral Commission. In 1989 he was
involved in a legal row with the family of Captain Edwin Bundani Nleya who
was murdered in mysterious circumstances after he accused senior Zimbabwe
National Army commanders in Mozambique of being involved in a rhino horn
smuggling racket. Soon after he made the allegations, Nleya disappeared
while on duty and his decomposed body was found on a hillside in Hwange
town.

      The loss making and financially mismanaged railways has been losing
skilled manpower and senior enginemen to neighbouring countries since 2000.

      The skilled workers complain about government meddling in the running
of the parastatal and the politically motivated appointments of
inexperienced people in managerial positions.

      SW Radio Africa Zimbabwe news


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Mugabe's Midima plaque removed

The Nation, Malawi

      by Olivia Kumwenda, 18 May 2006 - 07:49:08
      Thirty unidentified people on Tuesday night removed the plaque
Zimbabwean President Robert Mugabe unveiled when he officially opened the
Midima Road which was re-named named after him.
      The plaque was under police guard since the road was opened two weeks
ago.
      Southern Region Police headquarters spokesperson Rhoda Manjolo said
Wednesday morning more than 30 people armed with weapons such as pangas
attacked the two police officers on "normal patrol" around the area before
they removed the plaque and took it away.
      "They managed to overpower the police officers and took the plaque.
You can imagine yourself: two people against more than 30 people! There wasn't
much they could have done," said Manjolo.
      She continued: "We don't know who these people were and where they
took the plaque to, [but] we are still investigating."
      Manjolo said the officers did not use their weapons because as
professionals they did not want to "hurt" anyone.
      Deputy Minister of Information John Bande described the incident as
"unfortunate."
      "If what you are saying is true then it's unfortunate but it does not
erase the fact that the Zimbabwean President and his people were honoured
because the road is still there," said Bande.
      President Bingu wa Mutharika named the road after Mugabe two weeks
ago, describing him as "a true son of Africa and hero" who deserves honour
"because of his relentless war against colonial domination not only in
Zimbabwe but also throughout Africa and the entire world."
      The honour came amid resistance from the civil society who protested
against the naming of the road after Mugabe because of his bad human rights
record in his country.


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Zim demolitions-blitz marked with songs, tears

Mail and Guardian

      Harare, Zimbabwe

      18 May 2006 04:54

            Songs, plays and heart-rending testimonies on Thursday marked
the first anniversary of Zimbabwe's demolitions blitz, which left hundreds
of thousands homeless and destitute.

            Reti Chakadenga, a former house owner now living among the
destitutes on the banks of a river on the outskirts of Harare, sniffed and
battled to hold back tears as she narrated her daily struggle after her
"unplanned" three-roomed brick home was razed last year.

            "I now live with my four children and two grandchildren in a
plastic and metal shack on the banks of Mukuvisi River, yet I had a proper
house," she told scores who gathered in a hall in Highfield township to mark
the controversial Operation Murambatsvina, or "Drive Out Filth".

            "It pains me when I remember that I used to live in a proper
house," the 58-year-old mother of four said.

            A community theatre group and groups of aspiring rap musicians
and poets performed at the first of a series of events to be held until July
18 to mark the crackdown.

            According to the United Nations, it left at least 700 000
homeless and destitute and affected 1,2-million people in various ways.

            "People have shown they have not forgotten that unfortunate
chapter in our history," said Precious Shumba, spokesperson for Combined
Harare Residents and Ratepayers' Association, one of the organisations
organising the events.

            The operation also deprived at least a million people of their
means of livelihood and has since become known as the "tsunami".

            Despite a much-vaunted follow-up operation called
"Garikai/Hlalani Kuhle" or "Live Well", meant to provide a better life to
those whose homes or shops were destroyed, tens of thousands are still
living in makeshift homes at various locations across the country.

            President Robert Mugabe said last month that "of the 7 478
planned units for phase one of Operation Garikai/Hlalani Kuhle, 3 325 were
completed last year and have been allocated to deserving beneficiaries." -- 
AFP


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Zim cops question critic about demo claims

IOL

          May 18 2006 at 01:36PM

      Harare - Police in Zimbabwe briefly detained a prominent government
critic over claims he was to lead a demonstration to mark the first
anniversary of a devastating wave of shack demolitions, it emerged on
Thursday.

      In a telephone interview, John Makumbe, a political science lecturer
at the University of Zimbabwe said he was picked up for questioning on
Wednesday and released some three hours later.

      "They were adamant I was organising a demonstration so they detained
me for about three hours," he said. The police told him that "if necessary
they will pick me up again," he added.

      This week marks the first anniversary of the launch of Operation
Restore Order, a controversial campaign of shack- and flea-market
demolitions that President Robert Mugabe's government said was meant to
bring cleanliness to the country's cities.

       The UN said at least 700 000 people lost homes and jobs in the
blitz - a figure disputed by the authorities.

      The main opposition Movement for Democratic Change (MDC) has recently
threatened to organize peaceful mass action, and the authorities appear to
be worried this weekend's marches could be the start of something bigger.

      "They're very nervous about the planned commemorations and that it
could be the beginning of the MDC demonstrations and civic disobedience,"
Makumbe told dpa.

      Mugabe has promised that the full wrath of the law will be meted out
on anyone who leads or takes part in anti-government action. - Sapa-dpa


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Zimbabwe set to increase interest rates

Business Day

Reuters

--------------------------------------------------------------------------------

SEOUL - Zimbabwe's Reserve Bank will increase interest rates by about 100
percentage points in a few days in response to hyper-inflation, governor
Gideon Gono told Reuters today.

The country's inflation, already the world's highest at an annual rate of
1042,9% last month, may rise further to around 1200% before falling fast
once food supply improves and after rate increases, he said.

"The central bank will respond decisively to any inflation challenges," Gono
said in an interview in Seoul, where he was heading a delegation to woo
investment.

"It's coming certainly in the next few days."

Asked about the scope of the expected increase in rates, he said: "It could
be about 100 (percentage points)."

The central bank raised rates by 50 percentage points to 800% last month.

Experts have said hyper-inflation is the product of an economic meltdown
also marked by shortages of foreign currency, fuel and food and rising
unemployment.

Gono said the country's inflation would keep falling sharply after peaking
at around 1200%, to below 400% by December this year and less than 50% by
June next year.

"By December 2007, we think our inflation will be below 15%, and by the
first quarter of 2008, we think our inflation will be in the single-digit
level," he added.

Gono said the country aimed to lift foreign exchange controls within the
next 18 months.

"It is not the intention of monetary authorities to continue managing
foreign exchange in the way that we are managing it today. We look to
liberalising the foreign exchange market within a period of three to 18
months," he said.

"It's got to be a gradual liberalisation."

Analysts have said the economic crisis has heaped pressure on President
Robert Mugabe's 26-year rule while the opposition has raised the stakes by
calling for peaceful anti-government mass protests.

Critics blame Mugabe's government for the economic meltdown, but the
government attributes the woes to sabotage by the West, led by former
colonial power Britain, in retaliation for its controversial seizures of
land from while commercial farmers.

Gono said Zimbabwe would achieve positive economic growth this year for the
first time in many years.

"Yes, it is very much achievable on the background of a good agricultural
season, the first good agricultural season in four years," he said.

"I think we should have positive growth of between 1% and 2% driven mainly
by the agriculture."


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Murambatsvina spawns prostitutes in SA

zimbabwejournalists.com

      By Magugu Nyathi

      JOHANNESBURG-Growing up in Zimbabwe in Entumbane,  a suburb well known
for the civil war between ZANLA and ZIPRA forces in the early 80's, Busi
Ncube always dreamt of becoming a model in Europe. Pictures of African
models she saw in magazines inspired her, but one hurdle kept her dream from
being realised - poverty. Her parents could not afford to have their own
house, so they were forced to rent from different landlords.  When her
father Nkosana passed away and her widowed mother could not find a job to
support the eight children her husband left behind and the situation
worsened. Busi managed to get an 'O' level certificate but finances
constrained her from furthering her studies.
      "I had to look for a job to pay for my school fees and support my
family, but it was difficult to get one as most employers needed educated
and experienced people," she said in a recent interview.
       With nothing coming her way, Busi ventured into vending selling
different types of goods she was importing for Botswana. Her business was
booming and poverty was a thing of the past in her family. She became the
envy of her community but on 26 May 2005, a day after the African Unity
commemoration, her life was destroyed beyond repair as the government of
Zimbabwe pounced on unsuspecting citizen destroying unauthorized homes and
unlicensed vending stalls of the urban poor it termed illegally leaving
millions of people affected by Operation Murambatsvina. She found her self
in the middle of nowhere since her wares and money were confisticated during
the process.
      "This is cruelty at its worst nature, I thought I would be able to see
my siblings through school but my government proved me wrong. I never wanted
to come to South Africa permanently but what do you do when you have a
family to look after and you have been stripped off all what you have worked
for.
      "I came to Johannesburg with this hope that I would get a job as soon
as I stepped out of the taxi and be able to send some groceries and school
fees back home for the family. Unfortunately, things did not work out that
well for me I have nothing to myself but back home every one looks upon me
for survival hence I'm forced to sell my body so that they can at least have
a decent meal on the table.
      Busi's story rings a bell among a host of young Zimbabwean women who
fled their country after Operation Murambatsvina in search of better
economic opportunities and shelter in South Africa as over 700 000 were
stripped off their homes. For these women, life in Johannesburg reads like a
page scripted in hell.
      Zimbabwe's economic crisis, described by the World Bank as
unprecedented for a country not at war, has seen millions of young
Zimbabweans flee the country en masse in search of better economic
opportunities elsewhere. But this mass movement of people has triggered its
fair share of social problems according to some of the women who spoke to
Southern News in Johannesburg.
      Promise Muzanenhamo a vivacious 29-year old woman, says she has no
qualms in her decision to source extra-cash through her nocturnal activities
on the streets.
      "I not saying prostitution is good but it's better than being
miserable your whole life and your children failing to go to school. I loved
my husband, a degreed teacher in Zimbabwe. But he was soon a pauper as his
salary could not buy us our own house and we were staying at a back yard
house in Njube, which was destroyed during the pick of madness by Mugabe and
his cronies. I had nowhere to go with my kids as owners were only
accommodating their relatives who were also affected and I left him to fend
for my children.
      "The situation is pathetic back home. It is better here as I can
afford to give my two kids a decent meal every day," said Muzanenhamo with
no tinge of a bothered conscience whatsoever.
      Poverty and desperation is leading many women into street
prostitution. In a bid to escape poverty, an increasing number of women are
turning to prostitution. Prostitutes operate in bars, restaurants and hotels
and street corners. Some nightclubs owners reportedly allow under-age girls
into clubs for sexual exploitation by clients. More than 50% of the
estimated 10 000 commercial sex workers in Johannesburg central - where many
hotels double as brothels - are said to be Zimbabweans.
      Livington Moyo, an HIV/AIDS activist and trainer, said hundreds of
women are involved in prostitution for survival. Some women are also seeing
prostitution as a way to earn more money.
      "Because women have a limited access to occupations and resources,
they were the ones hardest hit during Opration Murambatsvina and the
economic crisis that had hit Zimbabwe for the past six years. They are the
caregivers and most households depend on them. As much as we do not
encourage them to prostitute themselves we realize they have families to
support and feed.
      "As HIV/ AIDS peer educators, we always make sure they have the
information to prevent themselves from getting infected or infecting other.
The stumbling block is not all of them want to be tested for HIV," he said


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British Tycoon Loses Bid to Stop RTG Annual Meeting



The Herald (Harare)

May 18, 2006
Posted to the web May 18, 2006

Harare

THE High Court yesterday dismissed with costs an urgent application filed by
British tycoon Mr Nick van Hoogstraten seeking an order to stop the Rainbow
Tourism Group (RTG) annual general meeting scheduled for today.

At the AGM, Mr Van Hoogstraten's company -- Messina & Banhams -- could table
resolutions for the effective dismissal of the RTG board of directors for
alleged "fraud and misconduct" in last year's $80 billion rights issue but
was likely to face stiff resistance. According to media reports, the tycoon,
a significant shareholder in RTG, would table a resolution to fire board
chairman Dr Ibbo Mandaza, Mr Canaan Dube, Mr Elliot Nyoni, chief executive
officer Ms Chipo Mutasa and Ms Grace Muradzikwa, among others. Justice
Tendayi Uchena, sitting in his chambers, dismissed the application on the
basis that the affidavit upon which Mr Van Hoogstraten relied had not been
properly authenticated in accordance with High Court procedures and the laws
of Zimbabwe.

The judge also cited that there were other alternatives available to Mr Van
Hoogstraten other than stopping the AGM. The matters raised in the
application, the judge noted, were currently the subject for arbitration
proceedings a nd the arbitration was likely to be heard between June 20 and
21.

In his application, Mr Van Hoogstraten sought to rely on a defective notice
for the resolutions to be tabled before the AGM, which did not comply with
the Companies Act (Sections 135 and 175) as it gave the RTG board less than
28 days' notice. The notice did not afford the RTG board sufficient time to
table and discuss the issues in a board meeting. RTG had, in their
submissions, urged the court to decline Mr Van Hoogstraten's application for
lack of merit. The company argued that the business to be transacted at the
AGM relates to regular business covered by Article 58 of the RTG Articles
and there was no basis to stop the AGM as the business of the AGM also
included the re-appointment and confirmation of directors. Members,
therefore, had an opportunity to express their wishes in this regard.

Justice Uchena, in his ruling, further noted that the company would suffer
more were the AGM to be cancelled as some shareholders were travelling from
overseas and expenses had already been incurred in the process to date. RTG
had also made the submissions, which would seem to have been accepted by the
judge, that the notice filed by Van Hoogstraten did not specify reasons for
the intended dismissal of the board.

The notice was found not to be urgent as Mr Van Hoogstraten, through his
representative on the RTG board, was aware on November 28 2005 of the
intended AGM date and did not bring the proposed resolutions to the board
meeting of March 9 2006 for the board to consider and see it necessary to
table with or without amendments before the AGM as it is the role of the
board to manage the company as provided in Article 88 of Memorandum and
Articles of RTG, which provides that between the AGM, the management and
control of the company is in the hands of directors. Commenting on the
ruling, the RTG board welcomed the decision of the court. The board said
shareholders, big and small, should learn to co-exist with other
stakeholders and not use strong-arm tactics to influence board decisions and
actions, as that was likely to be resisted by other shareholders that have
an interest in the well being of the company.

"RTG is a major player in Zimbabwe's tourism industry and shareholders are
expected to ensure the smooth running of the company as it is also in their
own interests as long as they act within the laws and Constitution of
Zimbabwe," the board said. "Shareholders should respect official structures
regarding responsibilities of the board and management in the day-to-day
management of companies." Mr Edwin Manikai, of Dube, Manikai and Hwacha,
represented RTG, while Advocate Eric Matinenga represented Mr Van
Hoogstraten and his company.


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Zimbabwe board steps in to scrap old provinces



Cricinfo staff

May 18, 2006

The interim executive of Zimbabwe Cricket has announced that it has
dissolved the existing five provinces and replaced them with ten new boards.

The move, which had been planned for some time, further weakens opposition
to Peter Chingoka, the ZC chairman, and his executive as many of the
existing provincial board members are now to all intents and purposes
redundant.

A statement issued by ZC said that it had received applications for
affiliation from five provinces around the country - Mashonaland Central,
Mashonaland East, Mashonaland West, Matabeleland North and Matabeleland
South - and that it had "affiliated them in line with the policy of the
country's sports regulatory authority, the Sports and Recreation Commission,
for national sporting associations to devolve along the country's 10
administrative provinces."

"In affiliating the five, we have not only implemented one of the Interim
Committee's terms of reference but also continued with the ZC mission of
spreading the game to all the corners of the country without regard to race
or creed," Chingoka explained. "We will continue working with the new
affiliates to create provincial cricket administrative structures."

Three of the five - Manicaland, Masvingo and Midlands - were dissolved
because they did not "conform with the new geographical limitations of their
central government administrative namesakes". The other two - the more
infulential Mashonaland and Matabeleland - have effectively been split in
smaller units.

Much of the opposition to Chingoka has centred on the old established
provinces, and their demise and division will ease the pressure on the
board. Furthermore, ZC, which has effectively cleansed itself of any
dissenters in recent months, will appoint interim committees to run the new
entities pending the drawing up of new constitutions and fresh elections.

The new ZC affiliates are as follows:
Harare Metropole Provincial Cricket Association
Bulawayo Metropole Provincial Cricket Association
Matabeleland North Provincial Cricket Association
Matabeleland South Provincial Cricket Association
Mashonaland Central Provincial Cricket Association
Mashonaland East Provincial Cricket Association
Mashonaland West Provincial Cricket Association
Manicaland Provincial Cricket Association
Masvingo Provincial Cricket Association
Midlands Provincial Cricket Association

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