The ZIMBABWE Situation
An extensive and up-to-date website containing news, views and links related to ZIMBABWE - a country in crisis
Return to INDEX page
Please note: You need to have 'Active content' enabled in your IE browser in order to see the index of articles on this webpage

Joice Mujuru Faces Ouster

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 20:30
ZANU PF's internal power struggles have resurfaced - this time with
greater intensity - amid revelations that Vice-President Joice Mujuru, who
wants to succeed President Robert Mugabe, faces removal from her position by
a rival faction led by Emmerson Mnangagwa.

The development comes as political realignments involving Zanu PF and
the  MDC-T  led by Morgan Tsvangirai gather momentum.

There was alarm within Zanu PF circles last week after Mujuru and her
allies voted with the Tsvangirai faction against the Mnangagwa group in
parliament during the election of chairperson for the women MPs caucus.

Sources said the move, which has led to manoeuvres to remove Mujuru by
Mnangagwa's faction, sent shockwaves through Zanu PF in the run-up to the
party's crucial congress in December. Mugabe is likely to be re-elected for
yet another five years as party leader because no one in his party is
prepared to challenge him.

However, sources said Mujuru might find herself in serious trouble at
the women's congress in August before the main party gathering in December,
where her rivals want her booted out for working with the MDC.

Zanu PF Women's League chairperson Oppah Muchinguri is said to be
working with the Mnangagwa camp to oust Mujuru. The sources said the Zanu PF
Women's League leaders want to rope in First Lady Grace Mugabe to kick out
Mujuru who came in in 2004 with her backing.

Mujuru and Muchinguri, who were allies when the former beat Mnangagwa
for the position of Zanu PF vice-president at the 2004 congress following
the Tsholotsho political debacle, have fallen out and now belong to
different camps in Zanu PF's factional politics. This has changed the
complexion of the Zanu PF power struggle as members crisscross factional
divides.

Trouble in the current round of Zanu PF infighting started last Friday
when Mujuru formed an alliance in parliament with MDC Vice-President
Thokozani Khupe to vote for Zanu PF Goromonzi MP Biata Beatrice Nyamupinga
against another Zanu PF candidate, Monica Mutsvangwa, senator for
Chimanimani.

Nyamupinga, who belongs to the Mujuru faction and Mutsvangwa, who is
linked to the Mnangagwa camp, were contesting the position of chairperson
for the women's caucus.

Nyamupinga won because of Mujuru's alliance with Khupe which insiders
said confirmed long-standing speculation that the Mujuru faction  had a
strategic alliance with the Tsvangirai camp in the country's power matrix.

However, there was fierce infighting before Nyamupinga controversially
won the election, conducted in parliament last Friday by a presiding officer
from the legislature. Sources said Nyamupinga unprocedurally stood for
election despite being beaten in two primaries by Mutsvangwa, Sadc
Parliamentary Forum treasurer, on the encouragement of Mujuru whose faction
is led by her husband, retired army commander Solomon Mujuru.

The sources said the move resulted in Mutsvangwa, wife of former
Zimbabwe ambassador to China Chris Mutsvangwa and ex-chairperson of the
Group of Spouses of African Heads of Diplomatic Missions in Beijing, walking
out and Nyamupinga claiming the position unopposed, although she was assured
of winning because the MDC was going to throw its weight behind her.

"The plan was that since Zanu PF has a majority among women MPs, it
would get the powerful post of
chairperson, while the MDC would get vice-chairperson. The parties
would then share the other positions of treasurer and secretary, including
their deputies," a source said.

"But then the whole process got trapped in Zanu PF factionalism.
Mutsvangwa beat Nyamupinga in primaries, but Nyamupinga refused to concede
defeat and the party ended up with two candidates in parliament. There was a
wrangle before the election, but they failed to resolve the issue.
Mutsvangwa ended up walking out in protest and Nyamupinga got in unopposed
because the MDC-T was not going to field a candidate as part of the deal."

There are 55 women MPs combined, but Zanu PF has a majority of 32
ahead of the two MDC factions combined. The MDC-T faction has at least 20
women MPs, while the remainder are with the MDC-M. The configuration of
numbers forced the parties into a deal to ensure the command structure of
the women's caucus reflected the parliamentary representation.

Sources said the deal was that Zanu PF would get the chairperson's
post, while the MDC-T would get the vice-chairperson. The MDC-T's Mutare
senator Keresensia Chabuka was elected vice-chairperson as a result. The two
main parties would also get the two posts of treasurer and vice-treasurer
and secretary and deputy secretary.

But this happened after infighting in Zanu PF which spilt into
parliament last week. Although parliament is not sitting, there was a
session for women to elect leaders of their caucus.

Sources said the fight at the caucus confirms a political re-alignment
which might benefit Mujuru in the end if she survives current efforts to
remove her. They said the calculation by the Mujuru camp is that if they
form an alliance with the MDC-T and Mugabe goes for one reason or another,
Mujuru would marshal enough votes in parliament to succeed Mugabe.

The constitution says if Mugabe goes before the end of his term both
houses of parliament would sit as an electoral college to elect a successor
for the remainder of his tenure.

By securing MDC-T's cooperation, Mujuru stands a better chance than
Mnangagwa to replace Mugabe if a position arises. However, her alliance with
the MDC-T could result in her ouster at the forthcoming Zanu PF women's
congress in August and the main party congress in December.

BY DUMISANI MULEYA


Click here or ALT-T to return to TOP

Mugabe, Tsvangirai Crisis Talks Deadlocked

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 20:23
THE principals in the inclusive government are close to declaring a
stalemate on the outstanding issues of the global political agreement (GPA),
a move that will result in the intervention of Sadc to break the impasse,
the Zimbabwe Independent learnt yesterday.

Impeccable sources in government said President Robert Mugabe, Prime
Minister Morgan Tsvangirai and Deputy Prime Minister Arthur Mutambara met
for the fifth time within a fortnight on Tuesday and failed to agree on the
way forward.

The sources said the three were refusing to compromise on their
positions on the sticking points, among them the reappointment of
ambassadors, permanent secretaries and provincial governors.

The other outstanding issues are the reappointment of central bank
governor Gideon Gono and the appointment of Attorney-General Johannes
Tomana. Now there is the hiving off of communications from the Ministry of
Information Communication Technology run by Nelson Chamisa of the MDC-T.

"No progress was made during the Tuesday meeting," one of the sources
said. "It (meeting) revealed that Mugabe on the one side, and Tsvangirai and
Mutambara on the other, are poles apart on the outstanding issues and the
expectation is that the principals would declare a deadlock when they meet
again next week."

The principals, the sources said, were not compromising on the
outstanding matters.

The declaration of a stalemate would result in Sadc, which guaranteed
the GPA signed last September, moving in to resolve the impasse and save the
inclusive government.

Tsvangirai's spokesperson James Maridadi yesterday said the principals
would meet either on Monday or Tuesday to continue deliberations on the
sticking points.

"The information I have is that there was some progress on some issues
and areas of disagreements on others when the principals met on Tuesday,"
Maridadi said. "They will continue with negotiations either on Monday or
Tuesday."

However, insiders said there was no progress to talk about in the
negotiations. Meetings have broken up amid rising tensions.

BY CONSTANTINE CHIMAKURE


Click here or ALT-T to return to TOP

Matinenga sinks Kariba draft

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 20:17
MINISTER of Constitutional and Parliamentary Affairs Eric Matinenga
yesterday said the Kariba draft constitution crafted by the three parties to
the global political agreement (GPA) will not be used as a key reference
point in the constitution-making process.

Speaking at a Zimbabwe Electoral Support Network and Electoral
Institute of Southern Africa post-2008 elections review conference in
Victoria Falls, Matinenga said the Kariba draft and the current constitution
would be circulated for people to appreciate the mistakes made in their
making.
He said the constitution-making process would be "people-driven".

"The constitution-making process is initiated by parliament and the
involvement of other groups comes at the sub-committee level," he said. "We
need civil society to participate at that level because I believe that is
where the work is done.

"All groups which want to participate can participate. Article Six
clearly addresses that issue. Nobody owns the Kariba draft and it is where
it belongs --- Kariba."

Matinenga said civil society should avoid turning the "people-driven
chorus" into a political slogan.

"We will never be able to agree on the definition of people-driven. My
view is that at the end of the day what is important is what we do in the
process as compared to the process itself," he said.

"There is the need to take on board everyone and agree on how outreach
programmes will take place."

The National Constitutional Assembly and the Zimbabwe Congress of
Trade Unions have rejected the Kariba and other previous drafts saying they
are not people-driven but a parliamentary process.

This followed the appointment of a 25-member parliamentary select
committee some three weeks ago to spearhead a constitution-making process
for the country.

BY WONGAI ZHANGAZHA IN VICTORIA FALLS


Click here or ALT-T to return to TOP

Media Indaba Revised After Boycott Threats

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 20:11
THE Ministry of Media, Information and Publicity has revised the
agenda for an all-stakeholders conference to review the country's media
environment in Kariba next week after media organisations threatened to
boycott it.

Media organisations and journalists had said the agenda, with its
prospect of unreconstructed media controls, was contrary to the principles
of the global political agreement.
Journalists had also questioned the inclusion of speakers such as the
chairman of the defunct Media and Information Commission, Tafataona Mahoso,
and former Minister of Information Jonathan Moyo who are perceived as
"enemies" of media freedom.

The conference - postponed last month - will be held under the theme
"Towards an Open, Tolerant and Responsible Media Environment".

Its objective is to guide government's media policy. Originally
pencilled in for Nyanga, it will run from May 6-9.

Jameson Timba, the Deputy Minister of Media, Information and
Publicity, told the Zimbabwe Independent yesterday that the ministry had
revised some of the themes for the conference and added more presenters.

Timba said there was nothing wrong with the previously announced
speakers as the ministry had invited people who stood for the old and new
media orders in a bid to create a balance.

"In terms of presenters we have some who represent the old media order
who have been invited to give a historical account of Zimbabwe's media
landscape," Timba said. "These have been balanced with a team of presenters
who are focusing their attention on how we can review our media landscape in
line with a new vision."

Some of the speakers at the four-day conference are Justice minister
Patrick Chinamasa, Attorney-General Johannes Tomana, Ambassador Chris
Mutsvangwa, Professor Tawana Khupe, Reuters Harare bureau chief Cris
Chinaka, and Harare mayor and lawyer Much Masunda.

Timba said the conference was a follow up to deliberations made during
a cabinet retreat at Victoria Falls in March.

"Following the government retreat, the ministry adopted a new vision
which should create an environment that allows for unimpeded supply, flow
and consumption of information," he said.

Timba said the conference would be looking positively into the future
and its outcome would make a significant contribution in shaping media
policy and laws in Zimbabwe.

"The strategic objective of the conference is to determine how that
vision can be realised through a process of reviewing the current media
policies and laws," he said.
During the conference various media stakeholders would make
presentations on themes relating to the media.

Zimbabwe National Editors Forum chair Iden Wetherell said he welcomed
the changes as it meant there would be a wider diversity of voices heard.
But there was "a clear need for root-and-branch reform, not tinkering", he
said.

Some of the topics that would be discussed are "freedom of expression,
media and the rights of the state (Tomana)", "the media, a Christian
perspective (Trevor Manhanga)", "regulation and print media; experience to
date (Mahoso)", "the media and national interest in a global context (Olley
Maruma)", and  "sanctions, publishing and access to information (Phyllis
Johnson)".

BY LUCIA MAKAMURE


Click here or ALT-T to return to TOP

Biti Intensifies Turf war with Gono

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 20:01
FINANCE minister Tendai Biti is pushing for comprehensive Reserve Bank
of Zimbabwe (RBZ) reforms to weaken his rival at the central bank, Governor
Gideon Gono, as the political war between the two intensifies.

Biti and Gono are locked in an intense tug-of-war which has drawn in
cabinet ministers and senior government officials. The current battle is
part of a wider power struggle within the inclusive government between
President Robert Mugabe and Prime Minister Morgan Tsvangirai.
Biti, who has vowed to remove Gono, is now working on a number of
measures to reform the RBZ. If his proposals succeed, Biti would gain a
strategic advantage over Gono and possibly ensure his removal from the
institution. The Gono issue has been part of the talks between Zanu PF and
the MDC factions.

Biti has never hidden his desire to get Gono out of the RBZ, saying he
has ruined the economy through quasi-fiscal activities.

"He has been stoking the fires of inflation through quasi-fiscal
activities. In other countries if a central bank governor admits to printing
money he will face the firing squad. Gono is the number one economic
saboteur, terrorist and Al Qaeda," Biti said last year.

After assuming the reins at the Finance ministry, Biti has been
crafting reforms that he wants implemented soon. The minister told a meeting
between RBZ officials and himself two weeks ago that changes were coming.

Informed sources said Biti said he intends to appoint a new RBZ board.
He would remove Gono as the board chair and have it chaired by a
non-executive board member.

A number of names of a potential RBZ board chair are being proposed,
including those of University of Zimbabwe lecturer Tony Hawkins, businessman
David Govera and MDC-T lawyer and negotiator Innocent Chagonda.

Besides Gono, the current board is also made up of his three
deputies - Edward Mashiringwani, Charity Dhliwayo and Nick Ncube - and
non-executive members, former Chartered Institute of Secretaries president
Grace Chella, University of Zimbabwe lecturer Clever Mumbengegwi, former
Bulawayo council town clerk Mike Ndubiwa and businessman Phineas Chihota.

However, Biti's moves are facing resistance from Gono and his allies.
Gono this week warned of "alien pieces of advice" in Biti's policies. Gono's
advisor Munyaradzi Kereke has told Biti that having an RBZ board that is not
chaired by the governor or chaired by a non-executive board member would be
"inconsistent with Sadc guidelines as well as international best practice".

Kereke said if that were to happen the day-to- day running of the bank
would be "paralysed".

Under the Reserve Bank Act, the central bank governor chairs the board
and its members are appointed by the president "after consultation" with the
minister.

Sources said Biti wants to ensure that Gono is completely sidelined.
They said he wants to take charge of the affairs of the ministry and the RBZ
to push his reforms and policies.

Besides, Biti wants to form a Monetary Policy Committee to deal with
monetary policy technicalities. Gono, according to the plan, would chair the
committee.

The sources said Biti also wants to amend the Reserve Bank Act to
remove Section 6 (i) (d) which states that one of the functions of the RBZ
is "to advance the general economic policies of government".

But Kereke has told Biti that removing this section from the RBZ Act
would undermine the constitutional and economic relevance of the institution
as its main and overall objective was precisely that.

Biti has asked Gono and Kereke to put their concerns in writing.

He also wants to look into Section 31 of the RBZ Act that deals with
optimal capital levels. He has ordered the RBZ to look into the issue and
report back.

Further, Biti wants Gono to issue indexed inflation-adjusted and
foreign-currency-denominated 2008 financial statements. But Gono has told
Biti via the Ministry of Finance accountant general Judith Madzorera the
instruction is "not feasible and is not based on sound advice".

Sources said Gono wrote to Madzorera three days ago, saying that the
accountants of the country in consultation with international boards of
accounts had indicated this was not possible for last year's accounts.

Gono said the Public Accountants and Auditors Board, which regulates
accountancy in Zimbabwe, the Zimbabwe Accounting Practices Board and
Zimbabwe Stock Exchange had issued a joint statement on financial reporting
explaining why 2008 accounts "had to be in local currency terms and at
historic values".

He said the transition to multi-currency and therefore
foreign-currency-based reporting was announced by acting Finance minister
Patrick Chinamasa in January and confirmed by Biti himself in his revised
budget in March.

"Therefore, the required compliance with foreign currency reporting
can only be legally achieved in relation to audited financial statements for
the year ending 31 December 2000 and not as directed for accounts ended 31
December 2008," Gono wrote.

He said it was clear to him Biti was being misled by his advisors.

Biti has also been pushing for the investigation of Gono over an
alleged breach in borrowing procedures. However, the minister was blocked at
last week's tense cabinet meeting from probing Gono.

Information minister Webster Shamu subsequently said Gono would not be
investigated, a position taken by his colleagues in cabinet last week.

Despite cabinet's position, a senior finance official said Biti
legally has powers to investigate Gono. In terms of the RBZ Act, Section 38
titled "Investigation into the bank's affairs", the minister can lawfully
probe the RBZ.

"The minister may at any time cause an investigation to be made into
the affairs of the bank by one or more persons authorised by him in writing
to do so," the Act says.

This section works in tandem with Section 37, which deals with the
powers of auditors.

Sources said Biti during the meeting also proposed a reduction of
statutory reserves from the current 10% to 2% of depositors' funds. This,
sources said, would be a reprieve for troubled financial institutions that
were battling to source money for lending.

The existing high ratio has resulted in fluid deposits and low
confidence in the financial system due to general dis-intermediation.

While Biti has been pushing hard, Gono has also come out fighting. The
central bank governor stepped up his fight back campaign  last week when he
published two supplements in the public media, slamming Biti over a number
of issues.

Gono hit back at Biti over allegations that he had borrowed over US$1
billion (US$5,3 billion in total) without approval from treasury. He has
produced authorisation letters which were signed in the past by one of Biti's
current advisors, permanent secretary for Finance Willard Manungo.

The letters show the authorisations were done by past Finance
ministers Herbert Murerwa and Samuel Mumbengegwi.

Murerwa is apparently one of those who agreed at the ministerial
economic committee meeting last week that Gono must be investigated.

Biti and Gono are also fighting over the distribution of cars given by
the RBZ to MPs. Biti has ordered Gono to withdraw the cars he has given to
the MPs and Gono initially indicated he was going to comply.

But he has been distributing more cars instead of taking them back.
Zanu PF and MDC MPs are refusing to hand back the cars, despite orders from
the MDC leaders to their own legislators to return the vehicles. Gono said
in an insert in the Herald this week that the wrangle over the cars was
"needless controversy".

BY BERNARD MPOFU


Click here or ALT-T to return to TOP

'Tortured' MDC-T Activists sue for Compensation

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 19:57
LAWYERS representing 18 MDC-T activists who were last year abducted by
suspected state security agents and kept incommunicado have written to the
Ministry of Home Affairs demanding US$7 million compensation for their
clients who were tortured.

The 18, who are facing terrorism charges, were abducted between
October and December last year and held in secret locations for more than
three months before being handed over to the police.
In one of the 18 letters written to the co-Ministers of Home Affairs
Kembo Mohadi and Giles Mutsekwa last week, the lawyers Mbidzo, Muchadehama &
Makoni, want the state to compensate their clients for physical and
psychological trauma suffered during their "unlawful" detention.

"We act for our client Gandhi Mudzingwa who has asked us to notify
yourselves, and officials and other persons whose names appear hereunder, of
his intention to sue yourselves and the said officials and persons," one of
the letters says.

Among those being sued by the activists are Police
Commissioner-General Augustine Chihuri, Minister of State Security in the
President's Office Sydney Sekeramayi, Minister of Defence Emmerson
Mnangagwa, Commissioner of Prisons Paradzai Zimondi, Minister of Justice
Patrick Chinamasa, Attorney-General Johannes Tomana, and the Director of the
Central Intelligence Organisation, Happyton Bonyongwe.

In the case of Mudzingwa, the lawyers said their client was abducted
on December 8 last year, thrown into a Mazda Familia and was assaulted while
blindfolded.

"Mudzingwa was taken to an undisclosed location where he was received
by a cheering crowd which further assaulted him using open hands, bricks and
all sorts of objects," the letter says.

The other MDC-T activists include Pascal Gonzo, Fedelis Chiramba,
Concilia Chinanzvavana, Manuel Chinanzvavana, Mapfumo Garutsa, Regis Mujeyi,
Zacharia Nkomo, Andrison Manyere, Chinototo Zulu, Kisimusi Dhlamini,
Broderick Takawira, Violet Mupfuranheve, Nigel Mupfuranhewe, Pieta Kaseke,
Collen Mutemagau, Audrey Zimbudzana and Tawanda Bvumo.

Mudzingwa's lawyers said the police should be made to pay for the
trauma their client suffered as they have failed to arrest his abductors.

"The police saw the persons who brought our client to the Highlands
Police Station but they did nothing. They did not arrest the kidnappers who
had presented themselves.

The police are therefore complicit in our client's abduction and
torture," argued Mudzingwa's lawyers.
Mudzingwa, the lawyers said, was a victim of enforced disappearances
which were outlawed by United Nations General Assembly Resolution 47/133 of
December 18 1992.

The letter also stated that the ill-treatment of the activists
violated Section 15 of the Constitution of Zimbabwe, Article 5 of the
Universal Declaration of  Human Rights, and Article 1 of the Convention
Against Torture and Other Cruel, Inhuman or Degrading Treatment or
Punishment which all provide for the protection against inhuman treatment.

 BY LUCIA MAKAMURE


Click here or ALT-T to return to TOP

'Electoral, Judicial Reforms Necessary for Free Polls'

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 19:47
ELECTORAL experts have said Zimbabwe must urgently create an
independent election management body that excludes the Registrar-General
(RG)'s office in the running of polls.

They said there was also a need to reform the judiciary, which they
accused of failing to protect ordinary citizens during last year's bloody
presidential election run-off.

Speaking at a post-2008 election review and prospects for electoral
reform in Victoria Falls this week, the experts said parliament should be
empowered to exercise an oversight role on electoral processes in the
country.

The conference was co-hosted by the Zimbabwe Electoral Support Network
and the Electoral Institute of Southern Africa (EISA). It was attended by
cabinet ministers, MPs, regional electoral officials, diplomats and civil
society representatives.

Zimbabwe Lawyers for Human Rights director Irene Petras said
parliamentary reforms were crucial to ensure that MPs oversee election
budgeting, the delimitation of constituencies and the operations of an
independent election management body.

Petras said the inclusive government needed to audit and review all
laws affecting elections in the country for future elections to be free and
fair.

"There is need for a comprehensive audit, not only of electoral laws
but also of other laws which impact on the electoral process and its outcome
and the requirements for a free and fair election," she said.

Petras criticised as "cosmetic" amendments that were made in January
last year to the Constitution of Zimbabwe, the Public Order and Security
Act, the Broadcasting Services Act and the Access to Information and
Protection of Privacy Act.

The Electoral Act and the Zimbabwe Electoral Commission Act were also
amended under the mediation of former South African president Thabo Mbeki.

The amendments were made to strengthen the legal and electoral
framework and processes for the March and June 2008 harmonised elections and
the run-off election respectively.

"Piecemeal amendments to laws and constitutional reforms and
constitutional provisions regulating elections in Zimbabwe do not work and
cannot protect the integrity of the elections," Petras said.

"Looking back at the vociferous manner in which the political parties
(Zanu PF and the two MDC formations) defended these amendments and their
manner of passage to the civil society and the public in general one could
be forgiven for thinking that major changes had been made for the better,
and that Zimbabweans could now be assured that the general legal framework
which was required to ensure a smooth and fair electoral process and to
protect the outcome of the popular vote had been put in place."
She said following the amendments "voices and faces" of now Prime
Minister Morgan Tsvangirai and Simba Makoni of the Mavambo movement were
heard and seen on state television and radio.
"Police were to be removed from polling stations and voters felt that
at last they would be able to vote freely and not be unduly intimidated by
this partisan force," Petras said.

However, she noted, the environment changed after the March elections
in which Tsvangirai outpolled Mugabe, hence the need for a run-off.

"Unprecedented levels of political violence, a terror campaign,
arrests and prosecutions of substantial numbers of presiding officers
working for Zimbabwe Electoral Commission on allegations of vote tampering
took place," Petras said.

She lamented the continued involvement of the RG's office in the
running of elections in the country.
"The Registrar-General's office continued to involve itself in the
electoral process without proper scrutiny and accountability. The state
broadcaster was used later for a vicious hate campaign against Tsvangirai
and the party he led," she added.

Petras accused the RG's office of preventing voters and candidates
from scrutinising the voters roll and police of barring the MDC-Tsvangirai
from holding rallies in various parts of the country using Posa.
She also lamented the delay in announcing results of the March 2008
harmonised elections, especially the presidential poll.

"The MDC approached the courts for an order to have the results
declared but were turned down in a judgement which has been largely and
comprehensively criticised by the legal profession and academics and jurists
beyond our border," Petras said.

"Recounts were ordered and carried out before the results of the
presidential election were even known or made public and legally challenged.
In this context when the results were eventually released their authenticity
could no longer be guaranteed. This together with the ensuing presidential
run-off became the most contested and illegitimate election since
Independence."

Petras accused the courts in Zimbabwe of failing to serve and protect
the vote in March 2008.

"Institutional and individuals independent of the judiciary assisted
by a compromised and politicised office of the Attorney-General ensured that
the will of the people would not and could not be respected," she said.

"This was not only in relation to the manner in which electoral
legislation and the constitution were interpreted by those on the bench, but
also by the inability or unwillingness of the Attorney-General to identify
and prosecute perpetrators of violations and the judiciary to ensure that
they were properly punished."

Electoral expert Armin Rabitsch said there was need for electoral
reforms in Zimbabwe which have to include the establishment of an
independent and competent electoral commission, a transparent voter
registration exercise, a free media space, creation of an appeals process
with an independent judiciary, postal and external voting, strengthening of
women's representation in parties and broader civic and voter education.

He said there was need to strengthen intra-party democracy and poll
watchers, revision of some sections of the constitution, role of government
in elections, clear result tallying, transfer and announcement processes,
among others.

Legal expert Geoff Feltoe said there were laws in the country's
statutes that look good on paper, but were never enforced in the March 2008
elections.

Feltoe said: "Electoral law reforms certainly don't guarantee free and
fair elections. Good electoral laws are only effective if they are observed
and enforced. Reforms ahead of the 2008 elections hardly had any impact at
all.

"Electoral reform will have little impact unless the electoral
environment is conducive to holding free and fair elections."

BY WONGAI ZHANGAZHA


Click here or ALT-T to return to TOP

Teachers Demand US$1 500 Salary

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 19:47
TEACHERS have this week demanded to be paid US$1 500 monthly and
threatened not to return to work when schools open for the second term next
Tuesday if government fails to meet their demand.

The Zimbabwe Teachers Association (Zimta) and the Progressive Teachers
Union of Zimbabwe (PTUZ) this week said the minimum salary for a teacher
should be US$1 500 monthly, down from the US$ 2 200 they demanded last year.
According to a declaration of Zimta's 28th  annual national conference
held in Bulawayo at the weekend, the teachers resolved to embark on
industrial action.

"Educators will not report for the opening of the second term as from
May 2009 until there is a significant improvement on their remuneration in
foreign currency," reads the declaration.

Speaking at the same conference, Zimta president Tendai Chikowore said
teachers have "been taken for a ride for too long" and would not report for
work unless their demands are met.

Teachers, like other civil servants, are paid a US$100 allowance.

"We (teachers) have been taken for a ride for too long now and it's
time we should act," Chikowore said. "The government failed dismally to
honour its promise of giving us a substantial salary, now it's our time to
take action."

She said it was "thoughtless" for teachers to return to work in
February without tangible assurance from the government for better salaries.

"Now we are stuck with the US$100 monthly allowance and we are without
pay," Chikowore said. "We are incapacitated and the only exit plan we have
is to down tools."

Teachers were on strike for the better part of last year and only
returned to class when Prime Minister Morgan Tsvangirai promised them
remuneration in foreign currency.

PTUZ  secretary-general, Raymond Majongwe, said the organisation was
"very disappointed" that the government failed to honour its promise of
paying teachers in foreign currency.

Instead, he said, the government was "wasting" money in retreats and
allocating ministers and MPs vehicles at the expense of the civil servants'
plight.

"We are dealing with a blithe (sic) government here that opted to go
on a spending spree in the Victoria Falls, and then came back to us claiming
that the country's coffers are empty.

How are we going to believe them if they are acting in such a manner?"
asked the militant Majongwe.
"As teachers we have taken a very bold stance not to report for duty
until government gives us a reasonable salary."

The Minister of Education, Sport, Art and Culture, David Coltart, told
the Zimta conference that the country's coffers were empty, hence it was not
possible to hike teachers' salaries.

Coltart said government had the intention to pay teachers a minimum of
US$500 monthly.

BY HENRY MHARA


Click here or ALT-T to return to TOP

Workers get Mixed Fortunes

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 19:37
TOMORROW'S Workers Day commemorations will be a celebration with a
difference for Lorraine Mapfumo, a nurse, as for the first time in many
years she feels she has something to rejoice about after her employer
earlier this year started paying her in hard currency.

Mapfumo, like many workers in Zimbabwe, has for the past three months
managed to put food on her table and provide basic needs for her family
using her US$100 allowance, something she could not do during the time the
local currency was the sole legal tender.

"What I am earning now might not be much but at least I can now buy
groceries and afford to commute to work daily," Mapfumo said.

Government and most companies in the private sector started paying
workers in foreign currency in January after the "multi-currencying" of the
national payment system.

The Zimbabwe Congress of Trade Unions (ZCTU), the country's largest
labour body, though accused by many workers of abandoning them in pursuit of
opposition political agendas, says it has been at the forefront demanding
the payment of wages in hard currency.

The ZCTU, which used to represent 300 000 members in the early 1990s
before the economy took a dip, has been accused of dabbling in MDC-T
politics at the expense of workers.

Lovemore Matombo, the ZCTU president, defended the union saying
workers should be reminded on May Day about the role of trade unions.

 "Universally, the role of trade unionism is to protect and defend the
interests of the workers and this is what we have been doing here in
Zimbabwe," Matombo said. "If we appear to be involved in political issues it
is because these issues are part and parcel of the everyday lives of workers
as our members have a right to take part in the democratisation of the
country."

Matombo gave examples of Zambia, Ghana and Kenya where labour
movements contributed in the democratisation processes in those countries.

Labour unions have over centuries acted as countervailing forces in
countries where there were weak opposition parties.

Matombo said this year's Workers Day celebrations were special as the
country's largest labour union survived the political crisis in the country,
which saw its leaders arrested and tortured.

 "We have withstood the political pressure from Zanu PF which arrested
and tortured our leaders and activists while they were taking part in the
democratisation of the nation," he said.

Matambo accused the government of creating discordant labour
organisations as a means of destroying trade unionism in the country.

Currently, the ZCTU is embroiled in a fight with employers on the
minimum salary the least paid worker in any industry should be paid. The
union is pushing for US$450 monthly.

According to statistics from the ZCTU, Zimbabweans are the least paid
in the region and yet the country is the most expensive place in the Sadc
region.

The current poverty datum line is US$450 yet many employers are paying
salaries even below US$100.
He said: "We have problems with companies, including the government,
who are paying their workers part of their salaries in local currency as the
money cannot be used anywhere."

Parastatals like Zesa, National Railways of Zimbabwe, TelOne and the
Harare City Council have come under attack from labour groups, including the
ZCTU, for slashing their workers' salaries.

Employers Confederation of Zimbabwe director, John Mufukare, said this
year's May Day celebrations come at a time when workers and employers are
celebrating a new beginning after the formation of the unity government.

Mufukare said industry welcomed the formation of the inclusive
government with cautious optimism as there were still a "lot of clouds
hanging" over the global political agreement.

"What we are celebrating is hope. Finally, we can start rebuilding the
country and the economy in a sustainable manner," said Mufukare.

The Emcoz director said the dollarisation of the economy has improved
the lives of many workers who can now afford to feed their families.

"With dollarisation, people can at least put food on the table
although the quantum of remuneration is not enough for people to live
lavishly," Mufukare said.

He said that employers were facing serious challenges regarding the
amount they could pay workers and can only pay a living wage provided there
is a substantial increase in production.  The ZCTU and other civil
organisations last year adopted a people's charter aimed at improving the
lives of workers. The charter, among other things, advocates for decent
work, employment and the right to earn a living for all.

The charter called for fair labour standards which include a tax-free
minimum wage linked to inflation and the poverty datum line and pay equity
for women, youth and casual workers.

According to the ZCTU, only about 10% of workers in formal employment
earn above the breadline salary of US$450, while multitudes of workers have
been made redundant following company closures over the past years and have
to eke out a living as petty traders in the informal sector.

BY LUCIA MAKAMURE


Click here or ALT-T to return to TOP

Whither the TNF?

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 19:33
THE signing of the global political agreement and subsequent formation
of an inclusive government in February undoubtedly came as surprise for many
judging by the lack of goodwill on the part of the political players that
characterised the negotiations from the outset.

But despite the odds, the warring factions buried their differences
and formed a unity government.

The talks to bring the warring political parties together started
almost a decade ago, but achieved little success.

Like the country's political settlement, the resumption of dialogue
under the Tripartite Negotiating Forum (TNF) between government, business
and labour and the eventual formation of a long planned "social contract"
could come with the same element of surprise this time around.

Could the same feat be achieved on the TNF front as well?

Entrepreneur David Govere said he was optimistic that the environment
is now ripe for the TNF to finally take off, citing developments on the
political front where rival political parties formed a unity government
despite ideological differences.

He said: "The fact that the principals of labour have agreed to come
to the negotiating table this time around after opting out a few years back
means that there is renewed hope that the TNF can work. I think the
inclusive government has surely changed people's ideas about the need to
work together.

Certainly there is a good chance that dialogue will culminate in a
social contract."

The Zimbabwe Congress of Trade Unions, the largest labour organisation
in the country, is not yet convinced government is sincere about reviving
dialogue.

Secretary-general Wellington Chibebe remains sceptical about the
success of the TNF saying the formation of a unity government is not enough
to convince his union that the state is faithful in forming an alliance with
labour and business.

He added that labour has always been "faithful and sincere" as a
partner in the TNF while government on the other hand only sought to abuse
the union.

Chibebe said: "Labour has always been about what needs to be done
while the then government lacked sincerity. Because of lack of sincerity we
had to pull out. But now we are saying that although government is not any
different, let's see where it takes us. This is not bad faith but we know
that government is the same. We are giving them a benefit of the doubt and
that is why we met them on Friday."

Confederation of Zimbabwe Industries president Kumbirai Katsande, a
partner in the TNF representing business, believes it's time to work
together.

Katsande said: "There is no luxury not to work together anymore
because the situation is tough out there and we have to start thinking
outside the box and abandon our dogmas as a country so that we can tackle
our challenges.

"We can't be rigid forever and we must realise it is time to start
looking at how best we can work together."

Commenting on labour demands for high wages, a business executive said
workers have to realise that the economy is not working and cannot be seen
pressing for high wages as if Zimbabwe is a normal economy.

"Labour has to realise that the country's economy is not working
properly and therefore business can't afford to pay high salaries. But we
have to work together nonetheless," the business executive said.

Over the years government, labour and business have been trying to
come together as social partners and address various problems that dogged
the country's economy but failed to agree amid accusations by labour of lack
of sincerity on the part of government.

Although talks to bring the parties together have failed to achieve
the desired result in the past, it remains to be seen if parties concerned
will put their differences aside and work for the greater good of the
country.

Although Labour minister Paurina Mpariwa Gwanyaya said government was
ready to meet with its partners in labour and business yet again after
negotiations fell through in June 2007, it also remains to be seen if the
government is sincere to work with business and labour this time around.

Analysts say lack of good will and mistrust between the partners could
nip the planned social contract in the bud.

While government appears keen on reviving dialogue with its partners
in the TNF, fears are that nothing on the ground has changed much to
guarantee the success of a planned social contract touted as the remedy for
the country's economic problems.

Analysts say although the current situation demands that government,
labour and business come together and find common ground on how best to get
the country out of its current problems, this is unlikely going to happen
arguing that now, more than ever business and labour relations could be
trickier.

Others said the history of TNF alone is enough to cast doubt on
whether the attitudes of the participants would change materially.

Labour first pulled out of the dialogue years back after government
unilaterally increased the price of fuel and also after government blocked a
visiting Cosatu delegation.

After that ZCTU and its partners had a rather thorny relationship.

The decision to resume dialogue was reached after two preparatory
meetings in the past two months required under the Short-term Emergency
Recovery Programme.

Under Sterp government said the TNF should resume.

The TNF partners have since set up a technical committee to assess
agreements and issues that they concluded before their negotiations broke
up.

The principals agreed on incomes and pricing stabilisation, the
restoration of production, and management of foreign currency policies.

They hope to have a binding social contract that guides the
formulation of all policies in the interest of the nation. But, as they say,
"seeing is believing".

BY CHRIS MURONZI


Click here or ALT-T to return to TOP

IMF aid Subject to Arrear Repayments

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 18:35
ZIMBABWE is not likely to get financial assistance from the
International Monetary Fund (IMF) until it pays its arrears to the
multilateral lender and the United States lifts sanctions on the country.

This means Zimbabwe will not benefit from the fund's relaxed measures
to bail out low-income countries.

According to a transcript of a press conference that followed after
last Saturday's IMF meeting in Washington, sanctions imposed by the US bar
Harare from accessing lines of credit and balance of payments support.

Finance minister Tendai Biti last week led a Zimbabwe delegation to
the IMF Spring meetings where he lobbied for re-engagement with the fund and
the World Bank after years of frosty relations.

The Southern African Development Community is trying to marshal
financial resources to bankroll Zimbabwe's Short-Term Emergency Recovery
Programme.

 "At present as the situation is, the fund cannot provide financial
resources for Zimbabwe because there are still sanctions in the fund with
Zimbabwe, so to start that process, there will be a need to lift those
sanctions and also for Zimbabwe to repay arrears to the fund and other
international financial institutions," the IMF deputy director for the
African Department, Saul Lizondo, was quoted as saying.

The country has outstanding arrears of US$125 million to the IMF
million and its voting rights were suspended in  2003.

The IMF Executive Board last week introduced a raft of reforms that
will, among other things, see the board stopping the approval of any
structural performance criterion in any programme carried out by the fund.

"The IMF has streamlined the financing terms by lengthening grace
periods by about one year for the Stand-by Arrangements, about two to three
years for the Extended Fund Facility which is an instrument that is expected
to be used more broadly by low-income country members that graduate from the
Poverty Reduction and Growth Facility," said the IMF.

"We're hoping to do some small, technical assistance in the key areas
of the fund's mandate, and we encourage others to do the same. And we'll
work with the Zimbabwean authorities to continue to make progress on the
reform effort."

Zimbabwe requires US$8,5 billion to finance its economic revival.

The IMF said there were "encouraging developments" in Zimbabwe on the
economic front.

"And as things improve in Zimbabwe, of course we'll see some of those
refugees return. And it's the context in which we think there's a window of
opportunity in Zimbabwe that is worthy of support by the international
community," the fund's director of African Department, Antoinette Sayeh,
said during the same press conference.

"We, for our part, are hoping to help in the ways we can currently,
and those are mostly through policy advice, our Article IV discussion with
the authorities was one form. We're hoping to do some small, technical
assistance in the key areas of the fund's mandate, and we encourage others
to do the same.

And we'll work with the Zimbabwean authorities to continue to make
progress on the reform effort."
Meanwhile, an IMF team that visited Harare last month to carry out
Article IV discussions will submit a report to its board on Monday. That
report will then be submitted to government for comments before it is made
public.

BY BERNARD MPOFU


Click here or ALT-T to return to TOP

'Banking Sector Must Align Rates to Sadc

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 18:25
THE banking sector should come up with interest rates and charges that
are aligned to those of the region if the sector is to be revived,
economists said this week.

The economists said the era of "cartels and a captive market" where
banks posted super profits at the expense of the public was over.

Consultations on interest rates on lending and deposits have started
in the sector after the January introduction of multi-currencying with the
South African rand chosen by the government as a currency of reference.

Economists told the businessdigest that the banking sector should
benchmark the charges in line with regional rates and lending risk factors
to come up with attractive figures for business.

Economic Planning and Investment Promotion minister Elton Mangoma
recently said consultations were underway on the rates and charges.

Mangoma said: "The local banking system can now issue foreign exchange
loans in support of productive sectors at rates which take into account risk
assessments by the banks and the cost of capital in international financial
markets.

"The local banking system is still working out the interest rate on
deposits as a way of mobilising savings."
When the economy was on a slide last year, on-lending interest rates
were more than 10 000%.

Independent economist John Robertson this week said the banking
sector, in deciding the rates, should take into account that the rand was
scarce in the country and that their charges should not be much higher than
those in South Africa.

"With the rand being the reference currency, banks should set interest
rates in line with those prevailing in South Africa but they should be
marginally higher and remain flexible," he said.

Robertson said the rates should be attractive to depositors to
encourage savings.

"If they are not attractive the culture of not banking will continue
and foreign currency will remain outside the banking sector," he added.

Currently, interest rates in South Africa are pegged at 9,5%.

Financial institutions in Botswana last week reduced the prime lending
rates to 14,5% in what the Bank of Botswana said was a response to weakening
inflationary pressures.

Botswana has pledged to offer a US$70 million line of credit to
Zimbabwe. The money will be sourced from its local banks.

Bulawayo-based economic analyst Eric Bloch said interest rates should
be pegged based on the rand and the US dollar.

"These are currencies widely used in Zimbabwe. There will be need for
monetary authorities to set rates that are consistent with those in the US
and South Africa," he said.

Former Zimbabwe National Chamber of Commerce president Luxon Zembe
said banks should align their operations with those of financial
institutions in the region.

"The banking sector is expected to revert to proper practices," he
said. "In coming up with charges, the sector should note that clients now
have options to transact within the region. So, they have to peg competitive
rates."

Zembe said competitive rates would help in instilling confidence in
potential foreign investors.

Mangoma said a lot was being done to ensure that the country's banking
sector returns to normality.

"A system has now been put in place to allow payments and transfers of
funds between parties and banks within the country without resorting to
corresponding offshore banks," said Mangoma.

Government has removed restrictions on business transactions by
deregulating restrictive exchange controls and delegated export
administration and payment authority to banks.

Individuals and companies are now free to pay for goods and services
offshore as well as service external debts without prior exchange control
approval.

Mangoma said: "In order to remove bureaucratic hurdles associated with
the processing of loan applications for both domestic and foreign investors,
the government simplified the approval process for external loans, with
authority delegated to banks to process loans of up to US$5 million without
prior treasury and Reserve Bank approval."

The adoption of the multi-currency system in the country's national
payment system left most Zimbabwean banks with reduced balance sheets to the
extent that they were no longer able to fully meet the financial
requirements of their clients.


Click here or ALT-T to return to TOP

Challenges to Food Production

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 19:27
THERE is a looming problem which needs to be addressed as soon as
possible before farmers start selling their produce.

For what I am saying to make any sense at all, it is necessary for me
to explain how farmers used to sell their produce, how millers used to buy
agricultural products and how other users such as bakeries used to access
flour, how producers of chickens used to get their feed, etc.

During the days of control of all agricultural products, GMB used to
forecast the size of all the crops under production. With this information,
it would approach banks to raise the necessary finance to pay for the crops.
Farmers would deliver their various crops between May and November.

Farmers would deliver maize, soya beans, sunflower, small grains,
groundnuts, coffee and wheat. Regardless of quantities produced and
delivered, GMB would take all and pay the farmers within three weeks. Of
course there would be payment delays here and there but on average, payment
was within three weeks.
The millers, oil expressers, stock feed manufacturers and others would
then buy from GMB as they wished, throughout the year.

Retailers, bakeries, pig and chicken producers etc would then buy
mealie meal, flour, cooking oil, chicken and pig feed.

In this chain, it was the responsibility of GMB to raise money to pay
the farmers regardless of whether there were buyers for the crops produced.
This resulted in GMB incurring losses which the government picked up as
subsidies.

Controls are not good as they bring many problems. The liberalisation
that was done by government around 1994 was very welcome indeed. Farmers
were free to sell their produce anywhere within the country. GMB became a
residual buyer.

GMB still estimated how much would be sold to it and sourced
sufficient funds. What they bought was mainly for strategic reserves. The
system worked well until 2001, when by statutory instrument 135 of 2001,
government controlled maize and wheat and their products.

Since then we have seen GMB, firstly, failing to produce any annual
accounts, hence failing to raise money from the money market to a total
takeover of its finances by the RBZ. All the money that GMB has been using
to buy maize and wheat was from the RBZ. They were no longer capable of
raising any money themselves.

Because of the good rains received this season, there is a mistaken
belief that enough maize has been produced. The situation on the ground is
that those farmers who had inputs do have a very good crop indeed.

However, they are not many at all. I have driven around the country
and we will be lucky if there is 700 000 tonnes of maize. This means that
there could be a shortfall of well over 1,3 million tonnes. There is a lot
of mealie meal, cooking oil, chickens from South Africa and even Brazil;
bread is available. The prices have really come down and one can say that
the prices are now largely affordable.

The government has again done well in decontrolling maize and wheat
and their products, although I am not sure if the above statutory instrument
has been repealed. However, the decision has created immense challenges.
Millers are importing wheat at around US$450 per tonne while bakeries are
importing flour at a price that squeezes millers out of business. The same
is happening with maize where it is not profitable for millers to compete
with imported mealie meal which is now available all over the country.

Government has said that GMB should, when buying maize, consider
import parity. The import parity price of maize is around US$300 per tonne.
This price is well below the costs that farmers incurred in producing this
crop.

It must be remembered that fuel coupons were costing US$1,35 per
litre, fertilisers were only available on the black market and seed too was
not available in the open market. Therefore, the maize that is being
harvested now was produced at a high cost. Whatever the price of maize will
be, it must encourage the farmer to grow more. In this regard, the imported
mealie meal will pose the biggest challenge.

As for buyers of this year's crops, GMB can be completely discounted.
This leaves millers, brewers, stock feed manufacturers and NGOs. The few
farmers who have produced maize and soya beans have large quantities. GMB as
a buyer was able to buy all the grain and oil seeds in six months.

One farmer in Karoi told me he had 300ha under maize and that the
yield would be very good. He will harvest more than 1 500 tonnes. Another
one in Bindura told me he was expecting 600 tonnes of soya beans.

The worry here is that while the millers and others will use all the
maize in a short space of time, they may not have the financial capacity to
pay the farmers as they deliver. Many of these farmers need the money in
order to plant wheat starting two weeks from now.

One farmer told me that his good soya crop had no buyer as chicken
producers have been driven out of the market by imported chickens. This
farmer needs US$700 000 to buy inputs for wheat.  Soya beans normally are
priced at double the maize price.

This means that the price for soyas should be above US$600 per tonne.
However, the cooking oil produced would be more expensive than the imported
cooking oil that is in the shops.

On the ground, I have not seen any preparedness to plant wheat two
weeks from now. For maximum returns all wheat must be in the ground before
the end of May; it must all be done under one month.

=Farmers must be supported through some form of subsidy. We all know
what happens in France if there is any inkling of tampering with the common
agricultural policy of the EU. French farmers drive tractors into Paris and
block all the streets. In the US, even honey producers are subsidised. I am
talking here of the principle, so the form is open to debate.

=There is need to protect our industries. In protecting industry,
government has a dilemma here in that because of the economic hardships in
the country any affordable food is welcome to the majority of our people.
How then do you protect the local industry while at the same time ensuring
that food is available at reasonable prices? The key here is what is
reasonable. Government must consider putting in tariffs.

Failure to do so means farmers will fail to produce, industries will
close and the people being protected from high prices will go hungry.

=GMB must lease storage space for all the buyers of farmers' produce.
After harvest and during storage, grain needs to be fumigated all the time.
This recommendation has the effect of reducing the price to the farmer
because GMB must charge for storage and fumigation and somebody must pay for
this.

=The potential problems I have highlighted here need to be addressed
as soon as possible to enable farmers to make decisions not only about how
much wheat to plant but how much to grow next season, which is not far away.

Renson Gasela is deputy spokesperson for the MDC-M and expresses his
personal views in this article.

BY RENSON GASELA


Click here or ALT-T to return to TOP

Eric Bloch: How did Business Survive?

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 18:12
AS the Zimbabwean economy commences its inevitably slow and lengthy
recovery from the morass in which it has been wallowing for many years, more
and more are expressing surprise and amazement that so many business
entities have survived the intense economic afflictions of the last eleven
years.

That surprise and amazement is not only an emotive reaction of
Zimbabweans, but also from many further afield, and particularly so as
global economic recession intensifies, bringing about the collapse of many
financial, industrial and other entities in the US, the United Kingdom, and
elsewhere.

More and more are pondering how it can be that world-renowned,
monolithic entities such as General Motors, AIG, Royal Bank of Scotland,
Northern Rock and numerous other giants of commerce, industry and finance
can be teetering on the precipice of total collapse, and yet a vast majority
of Zimbabwean businesses have withstood the ravages of years and years of
hyperinflation, declining consumer demand, negative infrastructural service
delivery, and innumerable other economic ills.

As a result, with ever greater frequency, international businessmen,
financiers, journalists, politicians and many others are asking: "How did
Zimbabwean business survive? How did Zimbabwean business withstand and
counter the endless array of economic constraints that would have
irremediably crippled and destroyed business elsewhere?"

One hard and tragic fact is that many Zimbabwean businesses did not
survive. A large number of factories (and especially small ones) ceased
operations, numerous retail shops closed, including very many operated by
major national chain store businesses, a considerable number of service
providers (including electricians, motor mechanics, accountants, lawyers,
architects, engineers, and innumerable others) discontinued their
undertakings, as did numerous entities in the tourism sector, including
safari operators, lodges, restaurants, and diverse others.

But, nevertheless, a very great number of businesses, in virtually all
economic sectors, have survived and, with Zimbabwe now on the threshold of a
substantive economic recovery, are either poised to benefit from, and
exploit, the recovery, or are seeking the resources necessary to enable them
to do so.

It is their continuing existence, and evident intent to be
contributants to, and beneficiaries of, the economic recovery that is
prompting the questions as to how they survived, and how they withstood the
almost endless buffeting of economic ills that beleaguered their operations
for more than a decade.

The methodologies of survival were many, but undoubtedly the most
predominantly applied survival tactic was a blatant disregard for certain
laws, certain facets of breach of law being perceived as the only
opportunities for withstanding the pronounced economic afflictions.

First and foremost was recourse to the currency parallel markets.
Businesses with heavy reliance and dependency upon imports, and either not
being adequately engaged in exports to provide required foreign exchange, or
whose exports yielded an insufficiency of foreign exchange in consequence of
the burdensome mandatory surrender thereof of the Reserve Bank, resorted
endlessly to sourcing their foreign currency requirements in the illegal
alternative markets.

And those businesses as able  to generate  foreign exchange  in excess
of their own needs, but struggling to attain  viability  when exporting with
inadequate profit  margins, due to high competitiveness  in export market
pricing, would attain that viability by selling their foreign currency (net
after Reserve Bank mandatory surrenders,  and servicing  own foreign
currency needs) within those unlawful "parallel" markets.

The other frequent disregard for law, motivated only in order to
assure business survival, as against other motives such as profiteering, was
insofar as price controls were concerned. With typical foolhardiness,
government imposed untenable, business-crippling, price controls, its sole
motivant for doing so being to placate an increasingly infuriated electorate
which was beleaguered by intense inflation.

But most businesses contemptuously ignored the price controls, for
observance thereof was assured business annihilation. With diminished sales
volumes, and inflation-driven escalations in production and operational
costs, rising daily or even more frequently, business had no alternative but
to increase prices beyond permitted parameters, and did not have a
sufficiency of time to seek price increase authorisation from the intensely
bureaucratic price control authorities.

In fact, so intensely great was inflation that business ceased to
price on the basis of cost recovery plus a margin, instead pricing based
upon anticipated replacement costs, and profit margin thereon. It was not
avarice and greed that drove businesses to ignore price controls, but
desperation in order that their enterprises could survive.

Most businesses also had to address containment of operating costs in
order to ensure the continuance of their businesses. To that end, they
sought to reduce the size of labor forces, generally by allowing natural
attrition, without replacement, to bring down the numbers employed. In other
instances they offered many of their work forces opportunities of voluntary
retrenchment, albeit this necessitated funding of retrenchment packages and
termination gratuities but, by so doing, future recurrent operating costs
were diminished.

A further oft-resorted to cost containment was resorting to lesser
than usual maintenance of plant, machinery and equipment, although so doing
lessened the value of those assets, and often impacted upon  quality of
products, and upon productivity. However, business sought the benefit of
immediate reduction of costs, in order to survive, despite knowing that
doing so was an assured catalyst of future cost increases.

In other words, business was resorting to "crisis management"
decisions of addressing immediate problems, irrespective of consequential
exacerbation of future ones.

Most also strove to survive by effecting reductions in overhead
expenditures wheresoever it was considered possible to do so, including
lesser expenditure upon personnel training and development, discontinuance
of audit  of financial statements, cessation of insurance of assets against
the  countless risks confronting enterprises, reduced support for charities
and community service bodies, and so forth.

As inflation continued and intensified, so the capital resources of
most businesses were progressively eroded more and more, often contracting
to levels insufficient to meet the operational needs of the businesses.

Some resorted to borrowings   to counter this, but at considerable
cost, as interest rates rose progressively, driven upwards by inflation, and
such costs diminishing prospects of survival, unless other compensatory cost
reductions could be effected. Others addressed their capitalisation needs by
seeking investors willing to acquire a stake in the business, whilst yet
others sought to reduce their capitalisation needs by discontinuing
provision of credit to customers, lowering levels of stockholdings, and by
disposals of assets.

More constructively, in some instances, businesses did not yield to
the voluminous viability pressures upon them, and instead worked vigorously
to resolve those pressures by seeking enhanced trade volumes, either by
product diversification, or by marked diversification, or both.

They penetrated new export markets, often attaining only minimal
profit margins, but benefiting from significantly increased volumes of
production, or expanded their customer base, with like benefits, by
aggressive marketing and advertising, or widening of their product range, or
both.

The common trait of the businesses that survived, as against those
that fell by the wayside, was a determination to survive, a resolve not to
succumb to despondency and the widespread, heavily-prevailing "doom and
gloom" prognostications of many, but instead to have a sufficiency of
self-confidence to believe in survival, irrespective of numerous obstacles
and hurdles to be traversed. And it is those that will reap the benefits of
the economic recovery that lies ahead for Zimbabwe.

BY ERIC BLOCH


Click here or ALT-T to return to TOP

Muckraker: Govt Must Walk the Talk

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 17:56
A NICE Page 1 picture in the Herald this week, showing flower-sellers
back in Africa Unity Square and headed "Business blooms again".

"Flower vendors evicted during Operation Murambatsvina four years ago
are now back in Africa Unity Square after the Harare City Council licensed
them," we were told.

This is a welcome development. Muckraker has long argued that they add
colour and life to the neighbourhood which includes Meikles Hotel.
But why were they evicted in the first place if they are benefiting
the city, and why did it take them four years to get licensed?
The Herald didn't tell us.

Still with evictions, few will be persuaded that having evicted more
than 4 000 white farmers, issuing offer letters to 13 represents an exercise
in government generosity.
Advocate Martin Dinha was at pains to suggest that the land reform
exercise was not racist but aimed at redressing skewed land tenure patterns.
The Sadc Tribunal disagreed. It was self-evidently racist, it argued.
We agree that government needed to address colonial anomalies. But can
Dinha explain why people like Ben Freeth and his family were savagely beaten
by a Zanu PF gang and were then excoriated in the government media for
seeking relief at the Sadc Tribunal because they felt they couldn't get any
justice in this country? And let us not forget the plight of farm labourers
who have in many cases bravely resisted the Zanu PF thugs who have invaded
farms.

Our congratulations to Deputy Prime Minister Arthur Mutambara for
speaking up on the issue of land invasions. He personally visited the Freeth
family who in addition to brutal treatment are victims of dispossession. We
would be interested to hear the views of the Swedish and Norwegian
ambassadors on whether they think it's OK for the state to seize land and at
one stroke deprive a family of a lifetime's work?
They seem to be rushing with indecent haste to throw money at the
unity government before important issues, such as the role of the
attorney-general, have been resolved.

We had Sue Lloyd Roberts filming for the BBC last weekend. Her
interview with Tendai Biti provided him with the opportunity to make his now
routine pitch for immediate assistance.
Many people will be sympathetic with the argument that the unity
government cannot survive without donor support. But the bottom line is that
the MDC has not ensured sufficient adherence by President Mugabe to the
Global Political Agreement to warrant a change of policy.
Mugabe's refusal to appoint Roy Bennett to office despite a clear
obligation to do so is emblematic of the pact's weakness. The whole point of
the Sadc-mediated process was to stop Mugabe from behaving in a way that is
damaging to the country's interests.
What must also be evident to all is Mugabe's belief, reflected in his
Independence Day interview, that the MDC's job is to persuade donor states
to lift sanctions. What needs to be said loud and clear is that until Mugabe
meets the criteria set out in the GPA, there will be no obligation for
others to help. The parties to the unity pact must first do what they said
they would do in September.

The proposed media-reform conference, now pencilled in for Kariba in
less than a week's time, illustrates the attempt by the ancien regime to
cling on to power. Instead of drawing up an agenda in consultation with the
media, the government has
arbitrarily lined up a rogues' gallery of media molesters who
can be guaranteed to do what they do best - as little as possible
while acting as apologists for state control.
Can you imagine sitting through a speech by Tafataona Mahoso, droning
on about why media reform equals regime change. And could somebody explain
what Chris Chivinge's job is at this point in time? Answers on the back of a
postage stamp please.

Lloyd Roberts concluded her otherwise revealing documentary by saying
"rich countries have little inclination to help".
In fact they are the only ones helping. The US and EU countries are
currently fixing the water infrastructure and providing food and medicines
to those most in need. The Scandinavians will also be paying teachers'
salaries.
What is the unity government doing apart from haggling over luxury
vehicles? It is a disgraceful episode and the MDC should wake up to the
long-term damage it is inflicting on the party's reputation. We expect Zanu
PF to be venal, not those purporting to bring improved governance.
And nobody buys the story about the MPs needing the vehicles to spread
the gospel of Sterp. Please stop insulting our intelligence!

US-based Human Rights Watch made a useful point on the sanctions
issue.
"Western governments should keep looking for creative ways to help
vulnerable Zimbabweans," the rights group said, "but they shouldn't bankroll
Zimbabwe's unreformed institutions of repression and those running
them.Human rights abusers should be prosecuted, not subsidised."
Webster Shamu showed us on Sunday what direction the media conference
will take when he threatened to "punish" the Zimbabwe Independent for
"publicising cabinet deliberations".
"Publishing deliberations of cabinet or building stories in the name
of the august body outside of what government has authorised and/or released
is a punishable offence," Shamu warned in a statement. "This is a standard,
worldwide rule for both governments and the media."
Is it? Strange how suddenly Zanu PF ministers embrace the rule of law
and international standards when they want to "punish" newspapers. And now
cabinet has become "august"!
The law to which the minister refers is presumably the Official
Secrets Act which most people in the media and many in government see as yet
another of those relics of empire which Zanu PF seems so fond of. Like all
the others it needs to go!
Shamu is predetermining the outcome of the media conference by making
hostile statements of this sort. Why doesn't he say something useful, that
is when he is not inserting newspaper ads in praise of Vitalis Zvinavashe!

And finally on this subject, does Gideon Gono find it helpful to have
Zanu PF ministers coming to his aid every time he finds himself in a little
local difficulty? And weren't we assured his little spat with Cde Biti was
over?

Is it true that history repeats itself? In May 1979 Ian Smith,
recognising eventual defeat in the country's liberation war, conceded the
impression of power by handing the premiership to Bishop Abel Muzorewa while
retaining its substance.
He kept for himself and his cronies ministries concerned with justice,
police, the armed forces and civil service. As a result those with whom he
purportedly shared power were discredited for their failure to make a
difference. The war
continued and sanctions were not lifted.
They did get to change the flag and rechristen the national airline
but that was about all. Eventually, a new constitution negotiated by the
contesting parties brought real freedoms and sanctions were lifted.
Today, exactly 30 years later, these echoes from our past have come
back to haunt us.


Click here or ALT-T to return to TOP

Candid Comment: Form and content in 'new' constitution

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 18:06
NCA chairman Lovemore Madhuku's article last week focused chiefly on
the definition of a constitution. He promised to explain this week a
"people-driven" constitution-making process.

My observation on the second point is that either Madhuku has a
contract with all who can explain the concept "people-driven" not to write,
in which case they are stifling debate, or he is the only one who can do so,
which renders it a valueless novelty.

On the definition, Madhuku gives us traditional concepts used in every
modern constitution so that it's hard to tell what would make Zimbabwe's
supreme law unique.

He says the "purpose of a good constitution is to entrench strict
controls on the exercise of power". In other words, to prevent the abuse of
power. This is not a revelation. It means our basic law can be an amalgam of
existing laws or drafts without the need for an expensive survey.

What is needed is transparency on the draft(s) to be used. The secrecy
around the Kariba draft has created a lot of suspicion about government's
intentions instead of eliciting constructive debate.

People should be able to add or subtract to the draft as informed by
their objective experiences. This will enrich the debate better than the
gathering of raw data. Zimbabwe is not seeking to reinvent the wheel.

Madhuku will admit that a constitution cannot be a reproduction of raw
passions. In the end technocrats will reduce it to a schema before it is
signed into law.

This is the argument: We have been too long in the cold and have
agreed we need a good house. We have a ground and a selection of houses to
which we can make alterations and combinations to satisfy our peculiar
wants. The debate is whether to buy a house or to build from scratch.

The universal question is: "How do you wish to be governed?" Millions
of people and hundreds of nations have answered it for us over the centuries
it is extravagant of us to spend resources researching it. Yet Madhuku
reverts to architectural aesthetics to ask: "What is the most appropriate
and legitimate way of making a democratic constitution?"

This is superfluous. It makes building the house an end in itself. Is
the aim to consult everybody or to consult in such a way that the outcome is
acceptable to the majority? It is naïve to expect total consensus so long as
man can think.

Often supporters of a football team will disagree with the coach's
team selection but once the team wins the majority are happy. There will be
spoilers who want their favourite player in the team regardless of
victory -- the purpose of the match. If Bullet Hed had been in the game the
scoreline would have been six instead of four goals!

Do you want to drive a beautiful car or do you want to drive only the
one you have manufactured? The objective is to hold political leaders to
account and stop the abuse of power, not who or how the law was formulated?
It would be sad if Madhuku were to expend his constitutional expertise on
casuistry about processes instead of enlightening the nation on various
provisions in the draft.

Madhuku makes his argument fatally flawed by seeking to use the
outcome of the referendum to fortify his position. The premise is that if he
wins then he is right and the reverse for Zanu PF and the MDC.
This is to conflate legitimacy with right.

I would agree with Madhuku if he said it was wrong for parliament to
set up a select committee to spearhead the constitution-making process and
then vest it with veto power on what is a good constitution.

That is wrong. It contaminates the result by usurping sovereignty from
the people to decide how they want to be ruled. Government cannot be allowed
to make laws on how it should rule.

What is needed is an independent body which can win the trust of the
majority to consult on the draft. Such a body must be seized by Zimbabwe's
historical and cultural sensibility, guided in its task by what Thomas Paine
calls a "sense and interest of country".

Madhuku says a good constitution (house) "must enshrine values which
guide and bind existing and future generations". Thomas Paine responds in
Rights of Man: "Every age and generation must be free to act for itself, in
all cases, as the ages and generations which preceded it. The vanity and
presumption of governing beyond the grave is the most ridiculous and
insolent of all tyrannies."

What should distinguish a Zimbabwean constitution from any other is
the national ethos, the defining spirit at a particular historical juncture.
One cannot, for instance, talk about a new constitution for Zimbabwe without
giving prominence to land.

Similarly, Zimbabweans' perception of presidential power and
term-limits is influenced by their present and past experience. But that
doesn't call for a new survey on constitution-making.

Madhuku's un-intellectual decision to appeal to the popular vote in a
referendum preempts and forecloses all dialogue because ultimately it
debases the discourse to a binary campaign for or against the draft
constitution. What is needed is open debate on the draft before us whether
done in Kariba or by the NCA.

People need to be informed. The objective is to come up with the best
constitution for our era, not to win the yes or no vote!

In debating a "new" constitution, let us heed Paine's caveat that
"when public matters are open to debate and the public judgement free, it
will not decide wrong, unless it decides too hastily". We need time.
This challenges the tyrannical timelines imposed by the GPA. Do these
deadlines serve the "sense and interest" of the nation? Was man made for the
Sabbath or the Sabbath for man?

Read Nyathi in newzimbabwe.com blog.

BY JORAM NYATHI


Click here or ALT-T to return to TOP

Comment: Progress on Reforms Much too Slow

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 18:03
WE are three-quarters way through the first hundred days of the
government's reform agenda drawn up at the Victoria Falls. Are we as a
nation making progress? "Half-half" would be the likely response.

The economy has stabilised thanks to the US dollar and the inability
of the Reserve Bank to go on printing money.
Political prisoners have been released although their captors appear
anxious to continue their detention. And ministers from all three parties
are in many cases working together to fulfil an agenda of reform and
recovery.

But there things get stuck. Wealthy donors are reluctant to do any
more than provide humanitarian aid because they see only limited progress on
the ground. They argue -- understandably -- that if Zimbabwe's political
parties cannot achieve progress, why should they be expected to help at a
time when their own economies are under pressure?

A series of meetings between the principals last week and this week
don't appear to have made much progress. An agreement in Pretoria to review
the appointment of governors, permanent secretaries, and diplomats has
produced nothing as President Mugabe digs in his heels.

The same goes for the Reserve Bank governor and attorney-general who
reflect partisan loyalties.
Arbitrary arrests, including those of productive farmers have raised
international concern; so has willful disregard for rulings of the Sadc
Tribunal. This is self-evidently still a government that only respects the
rule of law when it suits it.

Giles Mutsekwa at Home Affairs has achieved little or nothing in
curbing lawlessness or over-zealous elements in the law-enforcement
agencies.

Mugabe won't appoint Roy Bennett to office even though that step is
required of him in terms of the Global Political Agreement. The spurious
charges Bennett faces were dismissed when brought against Mutsekwa three
years ago.

Mugabe has also demonstrated his obstructionist powers by arbitrarily
reallocating the communications role of the ICT ministry headed by Nelson
Chamisa. The more reactionary elements in government will now have their
capacity to snoop on citizens enhanced.

Of particular concern to the media has been the bid by officials to
pack the forthcoming media conference with dead wood. Individuals who have
closed down newspapers and manipulated accreditation procedures will be
given a say in what a "reformed" media landscape should look like.

These are the sort of obstacles being thrown in the path of the
coalition government by those who are opposed to any concessions being made.

The response of donors is therefore hardly surprising. They have been
supporting the new government with aid on a significant scale at a time when
ministers have been arguing about what vehicles they should get.

The US-based Human Rights Watch summed up the dilemma.

Donor governments "should keep looking for creative ways to help
vulnerable Zimbaweans but they shouldn't bankroll Zimbabwe's unreformed
institutions of repression and those running them", it said last week.

The MDC has been too anxious to secure external funding without first
ensuring Mugabe and his gang of recidivist officials adhere to the terms
they agreed last September.

If things go on like this there will be a stalemate in the government
of the country which will undo the limited progress made so far.

MDC ministers should not be shy about identifying and denouncing those
who are resisting change so the public knows where the problem lies when the
100 days are up.

In the short term, Human Rights Watch called on the power-sharing
government to disclose the whereabouts of "disappeared" persons; end
harassment of civil society activists and free those who have been illegally
abducted; investigate allegations of torture and hold fully to account those
found to be responsible; halt farm invasions, remove immediately those who
have invaded properties since the GPA was signed, and respect private
property rights.

Human Rights Watch also called for the government to carry out without
delay reforms of the police, judiciary, prosecuting authorities,
intelligence service, armed forces, and other state bodies that continue to
abuse the rights of Zimbabweans.

These are benchmarks we should all support, reflecting as they do the
reasonable demands made of any democratic government. Their fulfilment would
signify more than anything else that there can be no going back.

What we can be sure of is the unwillingness of all Zimbabweans to
return to the lawlessness and violence of the recent past. And we can be
sure nobody wants to see the return of the discredited Zimbabwe dollar,
symbol of a failed state.

Those who are working for change can be sure of popular support. But
it is still too early to pretend that misrule has been effectively dealt
with. It hasn't and continues to haunt us as a nation deserving of better
things.


Click here or ALT-T to return to TOP

Editor's Memo: Threats and Lies

http://www.thezimbabweindependent.com


Wednesday, 29 April 2009 17:40
WHAT a week it was! Thanks to a stormy cabinet meeting last week at
which Finance minister Tendai Biti clashed with Zanu PF heavyweights over
his motion to investigate Reserve Bank governor Gideon Gono for allegedly
overstepping his mandate by borrowing more than US$1 billion (US$5,3 billion
in total) without approval from treasury.

The row, whose details were published in this newspaper last Friday,
triggered all sorts of reactions. It's a pity we can't follow-up the story
even though we have more revealing details because of officials' threats of
a backlash. We have been gagged.

The feedback to the story ranged from the positive to the hostile and
to the malicious. Official thought police and political hacks crept out of
the woodwork to issue threats and insults.

However, the feedback provided a useful insight into the current
political environment and attitudes towards press freedom. In Zimbabwe the
more things change the more they remain the same.

What was significant was that none of those making noise were able to
deny the story. They just complained that proceedings of cabinet were secret
and classified or that the story either advanced Biti's or Gono's agenda -
whatever those agendas are!

There were different interpretations of the story - which is normal in
a reasonably democratic and diverse society.

Some of the reactions came from Information minister Webster Shamu and
political hacks like Denford Magora, a former Mavambo movement publicist.
There was also hectic feedback, mostly in private among some of those
mentioned in the story. Revealing details of what they said could be
misconstrued for a defiant follow-up by hawkish government officials.

For the avoidance of doubt, I must clearly state we welcome feedback,
whether positive or negative. We will differ with officials and readers on
some issues, but we will defend their right to air their views freely.

At the Independent we have an open door policy. Even those who insult
us falsely claiming we get stories from the RBZ's PR desk and reporters here
have been bought houses by Gono are still welcome. We recognise other people's
freedom to lie!

In that connection, we were glad to hear Shamu's reaction to the
story. Via an article headlined "Government warns media", the minister was
quoted as saying newspapers which publish cabinet deliberations without
authorisation risk retribution.

He reminded the media in general and the Independent in particular
cabinet discussions were confidential.

He said it was an offence in terms of the law to write about cabinet
meetings and even went on to claim it was unethical, which obviously is
nonsense. There is nothing unethical about it. It's the legitimacy of the
laws in question - the Official Secrets Act and Aippa - that matter.

Politically, the reactions were mind-boggling. While we know what the
minister was saying may well be true, what is worrying is draconian statutes
used by government to justify Stalinist suppression of public interest
information and generalised media repression.

All over the world reporting on cabinet meetings is a controversial
issue.

Right now there is an interesting debate going on in the UK after
Justice Secretary Jack Straw vetoed a ruling under the Freedom of
Information Act instructing the government to release the minutes of two key
cabinet meetings on March 13 and 17, 2003, when the final decision to go to
war against Iraq was discussed.

Is it entirely legitimate to ban any form of reporting on cabinet?
Last year in the US there was a report that former vice-president Dick
Cheney had slept during a cabinet meeting on wildfires. Was it wrong or not
for the media to let people know that?

If ministers fight in cabinet, for instance, would it be in the public
interest to report that or not?

Currently Shamu and his colleagues are running around trying to
organise a media reform conference. Do his threats augur well for the future
of the media? Don't they signify the conference will be a sham?

Is it good to have a blanket ban on reporting on cabinet proceedings
or  could there be a way of balancing the public interest and state security
considerations without resorting to iron curtain restrictions? These issues
must be thoroughly debated, not through threats but open engagement.

Hopefully the media conference will not be a wasteful charade or a
cover for media tyranny. However, all those who have seen the programme of
the conference have been left astounded. It is packed with high-profile
enemies of press freedom.

Parenthetically, on the issue of newspapers borrowing money for
newsprint from the Reserve Bank, everybody who is informed knows that Gono
has confirmed it in public. The funds were not freebies. They were loans
that had to be repaid.

Some people claimed our story supported Gono. That's their view but
other readers actually concluded the opposite.

The story we published last week in brief said Biti got the backing of
Zanu PF ministers at a ministerial committee meeting to probe Gono for
alleged unauthorised borrowings, only for him to be blocked in cabinet. The
other story was MPs are saying ministers fighting them over RBZ cars have at
least two vehicles each bought by or via the same bank. We don't know why
anybody could find such true stories angering. Let's not gag the media
through unnecessary threats and lies.

BY DUMISANI MULEYA

Back to the Top
Back to Index