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Gono Cancels Money Transfer Agency Licences - Full Speech

Zimbabwejournalists.com

      By Gideon Gono

      FINE-TUNING OF MONETARY POLICY

      INTRODUCTION

      The banking sector, the corporate community and the general public
will recall that, in January 2006, the Reserve Bank announced that it was
adopting the half-yearly cycle of monetary policy announcement in line with
statutory requirements.

      It was also clarified then that, quarterly updates will be issued in
between the bi-annual monetary policy announcements.
      With the third quarter having ended on the 30th of September, 2006,
this Statement seeks to fine tune the monetary policy framework in line with
our announced cycles.

      With inflation reduction remaining the overriding objective of the
Central Bank, it has become necessary that additional measures be
implemented, so as to stabilize the economy in the medium term.
      Against this background, the following fine-tuning measures have been
introduced with immediate effect:

      2. MONETARY POLICY MEASURES

      FINANCIAL SECTOR STABILIZATION BOND

      Following representations by players in the banking industry, the
Reserve Bank has adopted the following policy positions:
      (a). Successive reduction of statutory reserves;

      (b). De-linking of capital requirements from the exchange rate.

      In order to ensure that the financial sector further strengthens its
medium to long term asset position, the Reserve Bank has introduced a 5 year
financial sector stabilization bond, which each licensed institution will
hold as a performing asset in its books, with effect from Monday the 16th of
October, 2006.
      The features of this bond are:
      (a). It counts as a collateral asset for accommodation purposes;

      (b). The annual coupon rate is variable, as given below:

      Year 1: 500%

      Year 2: 250%

      Year 3: 100%

      Year 4: 25%

      Year 5: 10%

      (c). The holding thresholds on balance sheet size as at 30 September
2006, will be:

      Commercial banks: 10%;
      Merchant banks:  7.5%;
      Finance Houses:  5%;
      Building Societies:  5%;
      Discount houses:  5%; and
      Asset Management Companies: 2.5%.
      BANK BORROWING FROM INDIVIDUALS AND CORPORATES

      The Central Bank is aware that, in their quest to evade paying
Statutory Reserves, some banks have been found window-dressing their
liabilities position, by re-packaging large deposits from corporates and
from certain wealthy individuals as "loans" to the banks.
      Such "loans" would, thus, be "creatively" excluded in the calculation
of Statutory Reserves, effectively undermining the effectiveness of monetary
policy.
      With immediate effect, therefore, banks are directed to cease any such
fictitious loans, which must be included in the determination of statutory
reserves.
      The Central Bank will, through its Bank Licensing Supervision and
Surveillance Division, be conducting audits and follow-ups. Where
non-compliance is detected, punitive action will be taken to correct such
wayward behaviour.

      INTEREST RATE POLICY

      ACCOMMODATION RATES

      With immediate effect, the Central Bank has raised accommodation rates
from 300% to 500% for Secured and from 350% to 600% for Unsecured lending.
      Please note that this adjustment is not contestable in terms of the
'In-duplum Rule'. We discourage any bank intending to contest this issue
from borrowing from the Central Bank.

      3. SUPPORT FACILITY FOR AGRICULTURE

      Monetary Authorities reaffirm continued support for the funding of the
agriculture sector through Agriculture Sector Productivity Enhancement
Facility (ASPEF).
      Dam construction and accelerated irrigation projects remain high on
the Central Bank's funding agenda. However, projects not supported by
vouchers, contracts and proper accounting records will not receive funding
from the Reserve Bank.
      It is also hereby made very clear that payment in retrospect for work
done years back, shall not be entertained.

      4. LENDING TO OTHER PRODUCTIVE SECTORS

      The Reserve Bank's interventionist approach and high involvement in
directing lending to agriculture has largely been a result of the
transitional lag of the implementation of the land reform programme and
bringing on board the 99-year leases.

      With the Reserve Bank having played a more dominant role in
agriculture, it is expected that banks in the market tangibly demonstrate
commitment to the development of the country through significant support to
other complementary sectors of the economy.

      Whilst it is not the intention of Monetary Authorities to force banks
to lend to specific sectors, the minimum expectation is that each bank's
lending asset portfolio must reflect a balanced presence across the key
sectors of the economy, as exemplified below:
      Recommended Lending Asset Orientation

      Sector Industry Average (actual July, 2006)  Desired Concentration
      Agriculture 25% 30%
      Mining  3% 15%
      Manufacturing  11% 15%
      SMEs 0.01% 10%
      Tourism 5% 10%
      Rest of the Sectors 55.99% 20%
      Total 100% 100%

      It is not the intention of the Central Bank to go the legislative
route to compel banks to lend to certain sectors.
      It is the expectation of Monetary Authorities that there will be a
balanced sectoral support using the scarce resources available.
      As Monetary Authorities, we urge that priority should go to exports
but without neglecting the non-exports sector.
      The Central Bank will examine the source and application of funds
including the application of provisions and profits in all lending
institutions.

      If it is deemed that the industry is not meaningfully transforming its
balance sheet positions to support productive activities in the economy,
appropriate remedial measures will be adopted.

      STOCK EXCHANGE

      Activities on the Zimbabwe Stock Exchange have become a cause for
extreme concern to Monetary Authorities, as the ZSE has become a platform
for creating vast amounts of paper-wealth without real productive activities
on the ground.

      Through policy coordination with the Fiscal Authorities, appropriate
instruments will be developed to reorient the ZSE more towards productive
activities. In terms of the payment system, whose domain resides with
Monetary Authorities, the following measures have been put in place:
      ZSE Transactions

      All stock exchange transactions above $50 000,00 shall be through
Zimbabwe Electronic Transfer and Settlement System (ZETSS), for both
individuals and corporates. All players in the financial sector are expected
to abide by this new requirement with immediate effect.
      In liaison with Tax Authorities, Monetary Authorities will soon be
insisting that every transaction above the $ 50 000,00 limit contain the tax
payer's number.

      The drawer and payee's tax numbers are to be captured on the
instrument of payment, whether it be by personal cheque, bank cheque or
RTGS. It will be mandatory to capture the tax numbers, as tax authorities
reserve the right to enquire.

      IDENTITY OF ZSE INVESTORS

      All stock market transactions must identify the actual investors and
where nominees are involved, stock brokers must disclose the people behind
them. This disclosure is only to the Reserve Bank and not to the public.
      This requirement is for the purpose of ensuring that people on the
international prohibited list (money launderers and financiers of
international terrorism) are not given an investment sanctuary in our
economy. Every so often, the Central Bank works in collaboration with
worldwide bodies who circulate lists of prohibited investors, under the
Global fight against terrorism and we are obliged to comply.
      In order to remove the veil of secrecy that is now prevalent in our
Stock Market transactions and to avoid accommodating the adverse fungibility
of certain share transactions, the Reserve Bank has fully activated the
electronic surveillance of all financial transactions, whose IT systems are
now in place and operational.
      Limits for which transaction disclosure to the Reserve Bank is
required are as follows:
      Investor  Threshold
      Individuals and nominees  $100 000
      Corporates  $ 1 000 000

      PRESCRIBED ASSET RATIOS FOR INSURANCE COMPANIES AND PENSION FUNDS
      The Reserve Bank will work closely with the Regulators of the
Insurance and Pension Funds Industry to ensure that at all times, the
prescribed asset ratios are complied with.
      Through this collaborative effort, defaulters will be brought to book
and stern measures taken to ensure compliance.

      7. PARASTATALS AND LOCAL AUTHORITIES

      In light of our varied experiences over the last 18 months, some
parasatals and local authorities have developed seemingly perpetual reliance
on the Reserve Bank for support, unacceptably surrendering their cash-flow
planning and survival needs to us.
      It has become necessary to institute stringent measures that restrict
and forbid non-performing parastatals and local authorities from accessing
Central Bank support.

      Parastatals and local authorities are hereby advised that their first
port of call for financial assistance shall be their parent Ministry.
      Those that immediately come to mind are Air Zimbabwe, ZINWA, ZESA,
GMB, ARDA, and ZISCO.

      Parent Ministries and management responsible for these institutions
are hereby advised to seriously take note of this position.
      We are, however, happy that some of the institutions, such as the
National Railways of Zimbabwe (NRZ) and Zimbabwe United Passenger Company
(ZUPCO), are beginning to perform and self-sustain.

      Banking institutions are urged to play a complementary role in
instilling sound financial management systems and corporate governance
standards in the parastatals sector as a condition for lending.

      8. BANK CAPITAL REQUIREMENTS

      We are pleased to report that all financial institutions declared full
compliance with capital requirements as at 30 September, 2006. Below is a
table showing the capital declared by each banking institution.
      CAPITAL POSITION OF BANKS & ASSET MANAGERS AS AT 30 SEPTEMBER 2006

      BANKING INSTITUTION CAPITAL REQUIRED DECLARED CAPITAL LEVEL AS AT
30/09/06
      COMMERCIAL BANKS(14)
      AGRIBANK Z$1.0 Billion 4,965,000,000
      BARCLAYS BANK Z$1.0 Billion 9,412,583,928
      CBZ BANK * Z$1.0 Billion 6,552,631,901
      CFX BANK Z$1.0 Billion 2,587,300,993
      FBC BANK Z$1.0 Billion 2,991,790,983
      INTERMARKET BANK *  Z$1.0 Billion 138,727,231
      KINGDOM BANK *  Z$1.0 Billion 4,093,020,010
      MBCA BANK Z$1.0 Billion 5,234,784,381
      METROPOLITAN BANK Z$1.0 Billion 1,051,589,524
      NMB BANK Z$1.0 Billion 2,244,245,391
      STANBIC BANK Z$1.0 Billion 7,835,975,801
      STANDARD CHARTERED BANK Z$1.0 Billion 6,243,805,033
      ZABG BANK Z$1.0 Billion 2,440,281,633
      ZB BANK Z$1.0 Billion 4,307,976,596

      MERCHANT BANKS (5)
      AFRICAN BANKING CORPORATION Z$750 Million 2,099,487,875
      GENESIS INVESTMENT BANK Z$750 Million 1,459,252,499
      INTERFIN MERCHANT BANK Z$750 Million 2,065,913,479
      RENAISSANCE MERCHANT BANK Z$750 Million 2,831,083,126
      PREMIER BANKING COPRPORATION Z$750 Million 3,421,662,831

      BUILDING SOCIETIES (4)
      BEVERLEY BUILDING SOCIETY Z$750 Million 1,914,461,592
      CABS Z$750 Million 11,721,526,640
      FBC BUILDING SOCIETY Z$750 Million 3,861,358,159
      INTERMARKET BUILDING SOCIETY Z$750 Million 2,444,468,978

      FINANCE HOUSES (2)
      ABC ASSET FINANCE Z$750 Million 1,311,410,689
      TRUSTFIN Z$750 Million 813,097,974

      DISCOUNT HOUSES (5)
      DISCOUNT COMPANY OF ZIM Z$500 Million  1,045,798,559
      HIGHVELD DISCOUNT HOUSE Z$500 Million  851,326,229
      INTERMARKET DISCOUNT HOUSE Z$500 Million  1,172,708,739
      NDH Z$500 Million  819,282,761
      TETRAD Z$500 Million  862,643,392

      Capital position is as at 31 August 2006.
      ASSET MANAGER REQUIRED CAPITAL DECLARED CAPITAL 30/09/2006
      ABC ASSET MANAGEMENT P/L* Z$100 Million 159,049,396
      ALPHA ASSET MANAGEMENT Z$100 Million 121,487,236
      EQUIVEST NOMINEES Z$100 Million 519,284,504
      FIDELITY ASSET MANAGEMENT Z$100 Million 141,671,083
      IMARA ASSET MANAGEMENT Z$100 Million 350,191,519
      KINGDOM ASSET MANAGEMENT * Z$100 Million 288,281,104
      LEGEND ASSET MANAGEMENT Z$100 Million 107,189,797
      PREMIER ASSET MANAGEMENT Z$100 Million 194,623,879
      PURPOSE ASSET MANAGEMENT Z$100 Million 493,720,449
      TFS MANAGEMENT COMPANY P/L * Z$100 Million 191,917,776
      MBCA CAPITAL MANAGEMENT Z$100 Million 136,136,322
      SYFRETS ASSET MANAGEMENT * Z$100 Million 261,630,000
      TN ASSET MANAGEMENT Z$100 Million 308,817,581
      INFINITY ASSET MANAGEMENT Z$100 Million 264,632,856
      OLD MUTUAL ASSET MANAGERS Z$100 Million 249,537,585
      CBZ ASSET MANAGEMENT Z$100 Million 1,780,734,546
      ZIMNAT ASSET MANAGERS * Z$100 Million 164,375,157

      * Capital position is as at 31 August 2006.

      The period between now and December 2006, will see the Central Bank
concentrating effort on verification of the declared amounts and stern
action will be taken against an institution that will be found wanting in
this regard.
      To this end, we remind banks that the Central Bank does not have an
appetite for Curatorships, which means that any institution in breach of the
regulatory requirements on capital adequacy, asset quality, management and
board deficiency, earnings deficit, liability mis-match and general
compliance shortfalls of any nature will go straight into liquidation.
      This stance is borne from our previous approach which tried to nurse
ailing institutions into perpetuity, via unwarranted curatorships.
      9. CASH WITHDRAWAL LIMITS

      We wish to remind the banking public of the cash withdrawal limits as
follows:
      Individuals:  $100 000,00
      Corporates:  $750 000,00
      In the case of demonstrable need for cash, such as requirements by
farmers to pay wages in cash beyond the above set limits, banking
institutions are advised to only issue such cash against auditable wage
schedules showing national identification numbers of beneficiaries and farm
owners and physical address.
      All high value cash handlers in urban areas (those transacting at
least $ 5 million a day), are required to bank their money on a daily basis.
These companies are expected to keep records of daily cash/cheque
transactions and bank deposits thereof.

      Special arrangements are being made for institutions like Grain
Marketing Board (GMB), Cotton Company of Zimbabwe (Cottco) and others who
make large pay-outs to their clients to reconfigure their operations so that
they use cash free modes of payment.
      Such arrangements will be made public once all the consultations are
finalized.
      All other companies who exchange cheques for cash in order to by-pass
the cash limits are committing an offence and will be dealt with accordingly
for breaching National Payments cash limits.
      We wish to emphasize that if banking players allow themselves to be
used as conduits for breach of these limits, they would have themselves to
blame when stern corrective measures are taken.
      We are aware of certain corporates and individuals who are in the
habit of withdrawing cash up to these limits on a daily basis from multiple
banks for speculative purposes.
      This habit must stop and banking institutions must report all
suspicious high frequency cash withdrawal transactions to the Reserve Bank
of Zimbabwe's Anti-money Laundering and Promotion of Bank Use Division.

      Penalties for any such violations, including complicity with
offenders, will result in the review of an institution's banking licence.
      Banking institutions are also advised that, with immediate effect
their compliance record, discipline and uprightness in observing the country's
laws and Central Bank regulations including anti-money laundering and
anti-terrorism laws will be used as a score card for the annual reviews of
their banking licences.

      Banks are, therefore, expected to take fiduciary and negligence
responsibility over money laundering and speculative activities of their
clients under the "know-your-client" principles.
      The onus will be on the banks to prove that they were genuinely
unaware of their client's illegal activities and source of wealth or purpose
to which frequent cash withdrawals and bank cash deposits were going to or
coming from, respectively.
      Any form of pressure or threat which is brought upon bank managers by
their clients or enticements to break the cash transaction rules must be
reported to the Central Bank and the account concerned frozen until such
freeze has been cleared by the Reserve Bank of Zimbabwe and proper
client/bank relations and procedures re-established.

      This means that, with immediate effect, all banking institutions will
be required to obtain a Certificate of Compliance annually, before 31
January of each year.
      The public will be advised through a notice to be published within a
fortnight of 31 January and external auditors of banks will be required to
include the compliance clearance certificate in their audit reports to the
public.
      No banking institution's accounts will be complete or published
without this certificate which guarantees the institution's continued
existence for business in Zimbabwe.
      The Registrar of Banking Institutions, reserves the right to withdraw,
cancel, or temporarily suspend the operation of any bank that is in serious
violation of the relevant statutory or regulatory provisions caused by any
of its branches or in conjunction with associated companies such as Holding,
Asset Management and other institutions.
      10. SUNRISE 2

      The market is informed that the Reserve Bank is at an advanced stage
in the preparation for Sunrise 2.
      The recent distribution of vehicles to various ministries should not
fool the banking public into thinking that the matter is taking a back seat.
      Phases of currency reforms will be implemented for as long as would be
required until the job has been done.
      With the experience the Central Bank has had from Sunrise 1, future
phases will be done at short notices.
      11. FOREIGN CURRENCY MOBILISATION

      Considerable efforts continue to be made in the mobilisation of
foreign exchange which has resulted in the procurement of adequate
agricultural inputs for the coming season.
      We urge those charged with logistical responsibilities to ensure that
these inputs are fairly and timeously distributed to the needy throughout
the country as the weather waits for no farmer.
      EXPORT INCENTIVES

      With immediate effect, the Reserve Bank has adopted a targeted export
incentives scheme, based on the well-proven 80/20 rule.
      The targeted support framework will thus primarily focus on those 20%
of exporters who collectively account for at least 80% of the country's
overall foreign exchange inflows.
      This approach which will be implemented without necessarily relegating
the other exporters will, however, be based on actual performance or agreed
projected export performance and guaranteed surrender to the Monetary
Authorities outside the mandatory 25%.
      Access of the facility will be in the form of working capital support
at favourable interest rates depending on values of currency delivered or
promised to be delivered.
      Tobacco and other agricultural players are already catered for via
ASPEF and other delivery bonuses and retentions.

      FUEL AND ELECTRICITY: Energy Stabilization Fund

      The country's energy sector requires urgent redress so as to support
productive activities.
      Fuel, for instance, remains inadequate for everyone, particularly for
leisure requirements, though there is enough for critical elements of the
economy, such as agriculture.
      Because of the absolute necessity to guarantee electricity and fuel
availability, we should ensure that the country has adequate fuel and power.
      In this regard, it is expected that 10% of all exports shall be
directed into an Energy Sector Stabilization Fund whose modalities are being
worked out and will be unveiled to the market in due course.
      To ensure accountability and transparency, the Energy Sector
Stabilisation Fund will be under the control of an entity comprising the
Bankers Association of Zimbabwe, NOCZIM, the Ministry of Energy and the
Reserve Bank of Zimbabwe.

      In view of the disparity in the fuel and electricity prices in
relation to the cost procurement and with a view to ensuring a minimum of
breakeven pricing status within these utilities. The Central Bank undertakes
to engage its Principals in Government with a view to encouraging the
adoption of market and consumer sensitive, economic and self sustaining
pricing models

      MONEY TRANSFER AGENCIES (MTA)
      With immediate effect, all MTA licenses are cancelled. All local
accounts for these entities should be closed forthwith.
      This withdrawal has been occasioned by non-performance and defiant
behaviour by most players in this sector.
      The list of the MTAs are:
      Fredex;
      POSB;
      Stanchart;
      NMB Bank;
      TransAfrik;
      Dollarway;
      CABS;
      Stanbic;
      ZIMPOST;
      I and F;
      Pacific;
      Banfords;
      Currency King (Kingdom);
      CBZ;
      Parlovan; and
      Interfin.
      Please note that where MTA's are linked to banks, this is not a
cancellation of their bankers' licences or authorized dealership.
      Existing contractual arrangements with Zimbabweans in the diaspora
shall be dealt with on a case by case basis.
      Existing contractual arrangements between these MTAs and Zimbabweans
in the diaspora shall be dealt with on a case by case basis.

      In the case of any aggrieved party seeking to appeal for the continued
legal holding of above licences, such appeals will only be entertained and
licence(s) reinstated on the basis of strict performance and delivery
targets.
      Such window of appeal remains open until 31 October, 2006 but for the
time-being, the public are advised that those licences are no longer valid
from the date of this anouncement.
      Stakeholders are, therefore, advised to deal with authorized dealers
only, that is, commercial and merchant banks, as well as Homelink.
      13. GOLD DEALERS AND OTHER SMUGGLERS

      It is known that gold dealers and other smugglers of precious metals
have chosen to use the black market fuel and DFI routes as channels to wash
into the economy, proceeds of their illicit behaviors.
      The appropriate arm of the law will soon catch up with them.
      Fuel dealers and service stations are urged to
"know-their-suppliers-well" first, like bankers are required to invoke the
"know-your-customer" well concept at all times.

      14 GOLD PRODUCTION

      Over the past 12 months, performance in the gold sector has been below
expectations, notwithstanding the positive developments on international
gold prices and the increased FCA retention for large scale producers.
      In the case of some large scale producers, gold deliveries to the
Central Bank have continued to fall, even when their consumption of
electricity and imported inputs has remained high.
      It is for this reason that with immediate effect, the Reserve Bank has
put in place a system of intricate precious minerals audits which will be
conducted on-site at each mine by well trained and experienced experts.

      SUPPORT TO SMALL SCALE GOLD PRODUCERS

      Unlike large-scale producers who can now keep 75% of their proceeds in
foreign currency accounts (FCAs), small scale gold producers are paid in
local currency for 100% of their deliveries.
      Against this background, the Reserve Bank has, with immediate effect,
introduced a tailor-made support framework that caters for small-scale gold
producers with the following features:
      THE SUPPORT FRAMEWORK

      (a) A cost build-up model for the average small scale producer has
been adopted, which would track production costs per gram delivered;

      (b) Over and above production costs, each small-scale gold producer
will be paid a cost plus 30% margin support price per gram; and

      (c) Periodically the cost plus support price will be reviewed to
reflect developments on the ground.

      Consistent with this framework, with immediate effect, the support
price for small-scale producers has been reviewed to Z$16000 per gram.
      This price level is expected to restore viability to the small-scale
miners, who are significant contributors to the country's foreign exchange
earnings.

      DR. G. GONO

      GOVERNOR

      RESERVE BANK OF ZIMBABWE

      9 OCTOBER 2006


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Judgment in Daily News' application for licence reserved

Zim Online

Tuesday 10 October 2006

      HARARE - A Zimbabwe High Court judge on Monday reserved judgment in an
application by the publishing company of the banned Daily News newspaper to
be granted an interim licence to publish the paper that was the biggest when
it was banned three years ago.

      Prominent Harare advocate Eric Matinenga, appearing for the Associated
Newspapers of Zimbabwe (ANZ), told Justice Marie-Anne Gowora that the court
should declare the publishing firm licensed to publish after the Supreme
Court last year ruled that the state Media and Information Commission (MIC)
that licences newspapers was biased against ANZ.

      Matinenga said the MIC was unfit to adjudicate over ANZ's application
for a publishing licence after the Supreme Court finding.

      The lawyer said acting Information Minister Paul Mangwana could - if
he had wanted to expeditiously deal with the Daily News matter - have
appointed an ad-hoc committee to determine ANZ's application or could have
asked President Robert Mugabe to use powers granted him under the
Presidential Powers and Temporary Measures Act to appoint such a committee.

      But Nelson Mutsodziwa appearing for Mangwana said ANZ's appeal to the
High Court was "premature and should be dismissed" because the Information
Minister has not yet had time to look into the publishing firm's case.

      "The minister has not been given time to look at the matter. He must
be afforded time to look at the matter, otherwise if the High Court grants
the order ANZ is seeking, that would be tantamount to seizing the
administrative powers he has," Mutsodziwa told the court.

      Mangwana was appointed acting information minister last June after the
death of then head of the ministry Tichaona Jokonya.

      Mutsodziwa also said Mugabe's presidential powers were strictly for
use on "national issues" and not to grant licences to newspapers.

      He also claimed that the Information Ministry only became aware of the
need to appoint an ad-hoc committee to look into ANZ's application for a
licence this year after another High Court Judge Rita Makarau interpreted
the 2005 Supreme Court ruling to mean that the MIC as currently composed was
too biased and unfit to consider the publishing firm's application.

      The ANZ lawyers however were quick to rebut this claim, pointing out
that the Ministry of Information was in fact the first respondent in the
March 2005 application in which the Supreme Court later ruled the MIC unfit
to adjudicate over Daily News' application for a licence.

      A lawyer for the MIC, Mercy Chizodza, told the court that it could not
grant a licence to ANZ because the information supplied when the company
made its application in 2003 was now outdated.

      The privately-owned Daily News is just one of four newspapers which
were banned by Mugabe's government in the last three years for breaching its
tough media laws.

      The other banned papers are the Daily News on Sunday, The Tribune and
Weekly Times.

      The Zimbabwe government, desperate to keep a lid on dissension amid a
worsening economic crisis, has also banned the few private radio stations
that had attempted to open up in the country.

      Zimbabwe has three daily papers, two of them majority owned by the
government and one said to be owned by the state secret service.

      The government-owned Zimbabwe Broadcasting Holdings (ZBH) operates
four radio stations and one television station all tightly controlled by the
Ministry of Information.

      The very few privately-owned newspapers in the country are all weekly
publications and with a smaller circulation than government-controlled
titles.

      The southern African country, which has laws providing for the
imprisonment of journalists for up to 20 years for publishing falsehoods,
was last year ranked by the World Association of Newspapers as one of the
three most dangerous places in the world for journalists.

      The other two countries are the former Soviet Republic of Uzbekistan
and the Islamic Republic of Iran. - ZimOnline


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Poachers kill elephants in national park

Zim Online

Tuesday 10 October 2006

      BULAWAYO - Poachers have killed elephants in Chizarira national park
in northern Zimbabwe, which according to conservationists has lost more than
50 percent of its game over the past six years when villagers occupied
conservancies and decimated wildlife.

      The elephants, part of a "presidential herd" which President Robert
Mugabe in 1991 undertook to protect from hunters and poachers, were
slaughtered last week for their ivory by as yet unknown people.

      The police in Matabeleland North province under which Chizarira falls
said an anti-poaching team disrupted about five people as they were
dehorning the elephants. The poachers fled the scene leaving behind a 303
rifle and about 22 tusks on the scene.

      "Investigations are in progress and police are compiling information
that would lead us to the suspects involved in the killing of the
 elephants," provincial police spokesman Augustine Zimbili told ZimOnline.

      The government's Department of National Parks and Wildlife Management
said it was yet to get a full report on the matter.

      Poaching has been rife in Zimbabwe since landless black villagers
began invading - with tacit approval from the government - white-owned farms
and game conservancies over the past six years.

      In many cases farm invaders poached animals for meat and also cut down
trees for sale as firewood mostly to people living in urban areas.

      Some of the country's biggest nature and game conservancies including
Gonarezhou national park that forms part of the Great Limpopo Transfrontier
straddling across Zimbabwe, Mozambique and South Africa have large parts
occupied by villagers.

      There have also been reports of illegal and uncontrolled trophy
hunting on former white-owned conservancies now controlled by powerful
government and ruling ZANU PF party politicians.

      The government however denies politicians are illegally hunting game
and insists it still has poaching under control. - ZimOnline


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AirZim resorts to 'cannibalism'

Zim Online

Tuesday 10 October 2006

      HARARE - Zimbabwe 's troubled national airline, Air Zimbabwe , has
resorted to "cannibalising" one of its three Chinese aircraft for spares as
the crisis at the airline deepens.

      Sources at Air Zimbabwe told ZimOnline yesterday that they will soon
resort to stripping parts from one of the three Chinese made Modern Ark
(MA60) aircraft to fix one of the planes undergoing major overhaul.

      The national airline is battling to secure spare parts from the
Chinese manufacturer after the Zimbabwean authorities bungled the initial
deal after they signed a purchase contract without a spares back-up service.

      "We can't get any spares for the aircraft and so we will ground
another aircraft. It's called cannibalism," said a senior official at Air
Zimbabwe who refused to be named because he is not authorised to speak to
the press.

      "It wasn't a comprehensive contract as it didn't come with spares," he
added.

      Air Zimbabwe was one of the best airlines in Africa in the early
1980s. But years of mismanagement and corruption have nearly brought the
airline to its knees.

      The MA60 plies domestic and regional routes which include Harare ,
Bulawayo , Victoria Falls, Lubumbashi and Johannesburg .

      Air Zimbabwe has in recent months failed to service some routes or
delayed passengers because planes could not fly due to a lack of spares or
fuel, blamed on an acute shortage of foreign currency to pay foreign
suppliers. - ZimOnline


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Women to protest over MP's 'degrading comments'

Zim Online

Tuesday 10 October 2006

      HARARE - Zimbabwean women will today stage demonstrations in four
major cities across the country over last week's comments by opposition
legislator Timothy Mubawu which they say denigrated women.

      Mubawu, who is the Movement for Democratic Change (MDC) legislator for
Mabvuku, told Parliament during debate on the Domestic Violence Bill that
"it was against God's principles that men and women should be equal."

      He also said the Bill should have clear guidelines on proper dressing
for women because "some of the dressing by women is too inviting".

      The comments were immediately condemned by women's rights groups as
degrading and sexist.

      Today's demonstrations, which will be held in Harare, Bulawayo, Mutare
and Gweru, were being organised by the Women's Coalition, a grouping of 35
women's rights organisations around the country.

      Women's Coalition vice-chairperson Regina Dumba said the MP's comments
were outrageous and unbefitting especially coming from a legislator.

      "The statements he made make a mockery of government's efforts towards
gender equality. We were not expecting such a statement from a person of his
standing," said Dumba. - ZimOnline


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Amnesty International Press Release - Martin Ennals Award



AI Index: POL 30/047/2006 (Public)
News Service No: 260
10 October 2006

Human Rights Defenders from Iran and Zimbabwe receive 2006 Martin Ennals
Award
Akbar Ganji, an Iranian investigative journalist turned activist, and Arnold
Tsunga, a lawyer and a radio commentator from Zimbabwe, will receive the
2006 Martin Ennals Award for Human Rights Defenders (MEA) tomorrow.

Louise Arbour, the UN High Commissioner for Human Rights, will present the
award at a ceremony at the Bâtiment des Forces Motrices in Geneva
(Switzerland) on Wednesday 11 October 2006, 17h30, within the framework of
the International North South Media Festival.

The Chairman of the Jury of the MEA, Hans Thoolen, described the laureates
as "symbols of the human rights movement in their respective countries,
where standing up for human rights and democracy is a dangerous activity;
they continue to be involved in this struggle despite repressive measures
and harassment".

Akbar Ganji was detained in 2000 after he wrote articles implicating several
officials in a string of murders of opposition intellectuals and writers in
1998. Later he was sentenced to imprisonment for "collecting confidential
information harmful to national security and spreading propaganda against
the Islamic system". He was held for 6 years in punitive prison conditions
in violation of international human rights standards. He was beaten by his
guards and placed in solitary confinement. After a hunger strike last year
and a spell in hospital, he was conditionally released in March. After a
short recovery, he started a tour in order to introduce Iranian intellectual
movements and democratic circles to leading philosophers, theorists, and
human right activists. He has written extensively in reformist newspapers,
many of which were shut down. While in prison, his writings were smuggled
out and widely distributed, especially on the web. Most notably he wrote a
Republican Manifesto in six chapters in March 2002, laying out his proposal
for a fully-fledged democratic republic for Iran.

Arnold Tsunga is the chairperson of the Zimbabwe Human Rights Association
(ZimRights) and trustee of the radio station Voice of the People (VOP), and
one of the leading human rights lawyers in Zimbabwe. In recognition of his
legal work on human rights and strong reputation in his field he became the
new director of Zimbabwe Lawyers for Human Rights (ZLHR) in early 2003.
Despite great personal risk, Arnold Tsunga has been representing individuals
arrested under new, repressive legislation, including individuals who have
been physically abused in custody. For representing these victims of human
rights violations and denouncing the legal system and the human rights
situation, he is constantly harassed and threatened. He was arrested several
times and recently released on bail. His courage and work are
internationally recognized: last June he was requested to speak out on
behalf of human rights organizations at the first session of the new United
Nations Human Rights Council in Geneva.

Background
The Martin Ennals Award for Human Rights Defenders (MEA) is a unique
collaboration among eleven of the world's leading human rights organizations
to give protection to human rights defenders worldwide. The Jury is composed
of the following NGOs: Amnesty International, Human Rights Watch, Human
Rights First, International Federation for Human Rights, World Organization
Against Torture, International Service for Human Rights, Front Line,
International Commission of Jurists, Diakonie Germany, International Alert,
Huridocs.

The previous laureates are: Aktham Naisse, Syria (2005); Lida Yusupova,
Russia; Alirio Uribe Muñoz, Colombia; Jacqueline Moudeina, Chad; Peace
Brigades International; Immaculee Birhaheka, DR Congo; Natasha Kandic,
Yugoslavia; Eyad El Sarraj, Palestine; Samuel Ruiz, Mexico; Clement Nwankwo,
Nigeria; Asma Jahangir, Pakistan; Harry Wu, China (1994).

MEA Patrons: Asma Jahangir, Barbara Hendricks, Jose Ramos-Horta, Adama
Dieng, Leandro Despouy, Robert Fulghum and Theo van Boven.

For media contacts and general information on the MEA, please contact Luis
Marreiros, Coordinator
Tel. +41.22.8094925 marreiros@martinennalsaward.org /
www.martinennalsward.org

Public Document
****************************************
For more information please call Amnesty International's press office in
London, UK, on +44 20 7413 5566
Amnesty International, 1 Easton St., London WC1X 0DW. web:
http://www.amnesty.org

For latest human rights news view http://news.amnesty.org


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More Remains To Be Done For Zimbabwe Demolition Victims - UN Envoy

VOA

By Blessing Zulu
      Washington
      09 October 2006

With another rainy season approaching, many of the estimated 700,000 people
made homeless by Harare's 2005 forced eviction and demolition campaign are
still living in the open in holding camps around the country. Recent reports
by human rights groups have said that very few of those driven from their
homes have been re-housed under the government reconstruction program called
Operation Garikai, or "Live Well."

Zimbabwean human rights organizations have recently reported the resumption
of forced evictions and demolitions in selected areas of Harare. Against
this backdrop, World Habitat Day came and went last week with little fanfare
in the country.

Reporter Blessing Zulu of VOA's Studio 7 for Zimbabwe interviewed Anna
Tibaijuka, director of the Nairobi, Kenya, based United Nations Habitat
agency and the former U.N. special envoy whose report on the 2005 campaign
brought it to a halt.


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Mugabe Proposes Succession Debate at December Party Conference

VOA

By Blessing Zulu
      Washington
      09 October 2006

President Robert Mugabe of Zimbabwe has said the ruling party's membership
will be allowed to weigh in his succession during the ZANU-PF annual
conference scheduled for December in Goromonzi, a town about 40 kilometers
east of Harare. But critics expressed doubt that Mugabe intended to resolve
the matter as soon as that.

National Constitutional Assembly Chairman Lovemore Madhuku, a prominent
figure in the opposition, said ZANU-PF's annual conference does not have the
power to select new leaders. Madhuku said that if President Mugabe were
sincere about selecting his successor he would convene an extraordinary
congress empowered to do so.

Madhuku added that if the issue is discussed at the conference, ZANU-PF
youth and the war veteran wing would be likely to force nomination of Mugabe
by acclamation.

Most observers consider Vice President Joyce Mujuru to be the strongest
candidate to succeed Mr. Mugabe, who in late 2004 pushed through her
nomination to the second slot and purged a number of senior party officials
who opposed the appointment.

Acting Chairman Simon Badza of the University of Zimbabwe political science
faculty told reporter Blessing Zulu of VOA's Studio 7 for Zimbabwe that the
president is on the correct track in proposing to take up the issue at the
annual conference.


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Tsvangirai, Marking MDC Anniversary, Renews Challenge to Mugabe

VOA

By Irwin Chifera, Carole Gombakomba & Patience Rusere
      Harare & Washington
      09 October 2006

Marking the seventh year in existence of his opposition Movement for
Democratic Change, MDC founding president Morgan Tsvangirai declared that
President Robert Mugabe and the ruling party should not blame him and other
opposition leaders if Zimbabweans take the law into their own hands to
remove Mr. Mugabe.

Tsvangirai issued the warning and the implied challenge to Mr. Mugabe in the
course of a political gathering in Harare. Correspondent Irwin Chifera
reported from Highfields sports ground in the capital where the MDC rally
drew an estimated 10,000 people.

But some political observers suggested that the main opposition party has
ground to make up before it will have recovered the position it attained in
2000, when it came close to claiming control of parliament in the general
elections held that year.

The rival MDC faction of Arthur Mutambara would seem to have even more
ground to cover. Mutambara has been drumming up support around the country,
but does not appear to have established a grass roots following on the scale
Tsvangirai has.

Over the past year the MDC has been much hindered and distracted by
divisions that split the party into two rival factions following a
controversial internal party vote on October 12, 2005, over whether to
contest November 2005 senate elections.

Political analyst Farai Maguwu told reporter Carole Gombakomba of VOA's
Studio 7 for Zimbabwe that both of MDC factions must refine their
strategies - and reunite - if they are to pose a credible challenge to the
administration of President Mugabe.

Much as expected, the ruling ZANU-PF party took both parliamentary seats
contested on the weekend in the Mashonaland towns of Rushinga and Chikomba.

In Rushinga, ruling party candidate Lazarus Dokore hammered opposition
candidate Kudakwashe Chideya 13,642 votes to 1,801. In Chikomba, Steven
Chiaurayi, beat Moses Giri of the MDC with 11, 247 votes to the opposition
candidate's 4,243.

Despite these two resounding defeats, MDC spokesman Nelson Chamisa said the
faction will continue to contest such elections even though it is currently
putting more emphasis on organizing what Tsvangirai has termed "democratic
resistance."

Analyst Pedzisai Ruhanya told reporter Patience Rusere that although the
electoral process is flawed, it makes sense for the MDC to remain part of
the process.


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Zimbabwe's Grain Monopoly Awaits Funds To Buy Winter Wheat Crop

VOA

By Jonga Kandemiiri
      Washington
      09 October 2006

Amidst a continued tight supply of wheat, flour and bread, the Grain
Marketing Board of Zimbabwe said it has not yet received funds from the
government to buy wheat from farmers though some producers are well advanced
in their winter wheat harvests.

GMB Acting Chief Executive Samuel Muvuti disclosed last week that the
Ministry of Agriculture and the Reserve Bank of Zimbabwe have not yet
remitted the funds. Some fear farmers could suffer losses if crops are
soaked by the rains now arriving.

But GMB Finance Director Rangaridzai Chivasa said the agency held a meeting
with relevant authorities Monday afternoon and that the funds will soon be
available. He added that farmers can now deposit wheat with the GMB and
receive payment.

In August, the government raised the producer price for wheat to Z$218,000 a
tonne from Z$9,000 previously to encourage the flow of wheat from fields to
depots.

But agronomist Thomas Nherera, a former president of the Indigenous
Commercial Farmers Union, told reporter Jonga Kandemiiri of VOA's Studio 7
for Zimbabwe that delays in paying farmers could hinder maize planting in
the coming farm season.


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Harare's Water Charges Likely to Go Up 10-Fold



The Herald (Harare)

October 9, 2006
Posted to the web October 9, 2006

Harare

HARARE'S water charges could go up 10-fold if the Government approves the
proposed new water tariffs by the Zimbabwe National Water Authority.

Zinwa argues that the new tariffs would enable it to do away with
intermittent water cuts in Harare and its satellite towns.

Although no official figures were readily available, The Herald understands
that the price of one cubic metre would be above $100, up from the current
$8.

Harare Bulk Water Supply -- a division of Zinwa which sells treated bulk
water to Harare and its satellite towns -- is reeling under financial
problems and might soon find itself unable to supply water.

The water authority pegged the price of bulk water at $80 a cubic metre, but
Harare City Council has been paying only $8 to Zinwa because of a Government
directive that reversed the increases.

Only last week, Zinwa was failing to pay salaries until it borrowed more
money.

Zinwa board chairman Mr Willie Muringani yesterday said keeping water
charges far below the cost of production was unsustainable.

"The right price will guarantee the continued existence of water delivery
services. If we continue to make a loss because of the unrealistic prices,
we will not be able to provide water," he said.

Mr Muringani said he would not allow a situation where other stations fund
the operations of Harare, as this would eventually cripple the operations of
the other stations.

"Harare Bulk Water Supply is failing to sustain its own water bill.
Government is looking at that and we hope they will approve a viable price
structure that is not lower than treating a unit of water," he said.

Mr Muringani's comments come at a time when Harare residents were grappling
with water cuts.

Mr Muringani defended the water authority against a public outcry saying the
Government transferred water management responsibilities to Zinwa because of
its track record in the provision of water.

Residents are complaining that erratic water supplies disturb their domestic
chores and social activities.

But Mr Muringani said Zinwa was proud of its track record since taking over
water management from Harare City Council.

"When given the mandate, we took it as a noble challenge. We took it with
pride and vigour. We have been following our success in comparison to
previous hardships," he said. He said Zinwa had improved water output from
an average of 400 million litres a day to over 600 million litres a day.

Mr Muringani said residents should also know that Zinwa was not responsible
for burst water pipes and the doorstep deliveries and these were the
responsibility of Harare City Council.


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Pricing War Threatens Traffic Lights Project



The Herald (Harare)

October 9, 2006
Posted to the web October 9, 2006

Harare

A PRICING war between Harare City Council and a company that won a tender to
supply and install solar powered traffic lights is threatening to derail the
project.

The robot heads and related equipment are gathering dust while the price war
rages on and motorists and pedestrians complain over the continuously
malfunctioning traffic lights in the city.

The company wants to be paid at the prevailing exchange rate while council
insists it will only pay at the exchange rate prevailing when the tender was
awarded.

Since last year, the city has floated several tenders for the supply of
robot heads but nothing seems to have been supplied, as the traffic light
signal problems are still noticeable.

Officials from Pentrad Investments have been, for the past few days,
knocking on council and Government doors to have their plea for inflation
adjusted price agreed to but without success.

It also appears indecisiveness and lack of legislation forcing local
authorities to repair and replace malfunctioning traffic lights could be a
hindering factor.

Pentrad Investments was awarded a contract to supply 62 three aspect matrix
signal heads. The robots are solar powered but can be connected to the
conventional electricity grid.

Some financial institutions allocated the company foreign currency early
this year to finance purchase of the robot heads from India after council
had declined to make an advance payment. The consignment arrived in the
country at the end of August.

But before the robot heads had arrived in the country, the company had
requested that council pay in advance to hedge against inflation, a request
that was turned down.

A Pentrad Investments spokesman said the company had in principle agreed
with council that payment would be made at the prevailing exchange rate.

At the time the contract was awarded the exchange rate was one Z$100 to US$1
but now the rate has shifted to one Z$250 to US$1.

The company wants to be paid at that rate but council is asking for
justification.

Pentrad Investments has already installed a set of the traffic lights on a
pilot project along Rekai Tangwena Road in Harare.

Officials from the city works department have confirmed the efficiency of
the solar powered traffic lights saying for the past 22 months that they
have been in operation, council has not done any repairs.

Motorists and pedestrians have always condemned council over the
non-availability of traffic lights at some major intersections.

A number of traffic accidents have occurred in the city due to the absence
of traffic lights. Some of the accidents have resulted in fatalities and
others in the permanent maiming of motorists and pedestrians.

However, the new price that council is refusing to pay is far much less than
what it would pay in the event it approves new tenders for the supply of
robot heads.

Three companies Pentrad Investments, CEM Private Ltd and Siemens responded
to a new tender by council.

Siemens is charging $694 140 a head while CEM Private Ltd is charging $520
000 for the Incandescent (conventional robot heads). Pentrad Investments is
quoted $934 000 for the solar powered heads.

The old price at which council is refusing to pay is $350 000 a head.

According to available information, the solar powered robots consume 90
percent less electricity. They are the ideal traffic lights especially now
that the country is facing power problems.


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Zimbabweans in the UK to petition Kofi Annan

Zimbabwejournalists.com

      By a Correspondent

      LONDON - THE Zimbabwe Vigil, which brings together Zimbabweans living
in the United Kingdom to protest against human rights abuses and related
ills every Saturday, celebrates its fourth birthday this week with a
petition to the United Nations Secretary General, Kofi Annan.

      Started in October 2002 with a pledge to continue meeting outside
Zimbabwe House in London every Saturday until internationally-monitored,
free and fair elections are held in Zimbabwe, the vigil will present the
petition to Labour MP Kate Hoey.

      Hoey, the chair of the all-parliamentary group on Zimbabwe and an avid
campaigner against human rights abuses in Zimbabwe, will accept the petition
outside the House of Commons Thursday afternoon and pass it on to the
appropriate UN representative.

      Saluting Hoey's courage in visiting Zimbabwe secretly last week, a
vigil spokesperson said protesters will meet outside Zimbabwe House
lunchtime and walk to the Houses of Parliament where the petition would be
presented.

      Part of the petition to Annan reads:  "We are deeply disturbed at the
deteriorating situation in Zimbabwe.  It seems as if the international
community does not care that a rogue government can hold its people
 hostage."

      "In the past six years up to a quarter of the population have fled the
country.  Half of those remaining face starvation.  Any dissent is stamped
on.  The UN's special envoys have seen this for themselves and condemned the
regime.  We urge the UN Security Council to take measures to help free the
suffering people of Zimbabwe."
      Hoey was recently in Zimbabwe on a visit that has been criticised in
the harshest of terms by Didymus Mutasa, the state security minister who
called the MP "sneaky". The Vauxhall MP met with the leaders of the trade
unions who were severely beaten up by the police last month during a workers'
protest. She also met other pro-democracy leaders in the country.

      "We will be marking the 4th anniversary of the Zimbabwe Vigil on 14th
October by mourning the death of freedom and democracy in Zimbabwe.  We will
be wearing black armbands," the vigil said.

       The MDC UK, a member of the Zimbabwe Vigil Coalition, will on the
same day celebrate their party's seventh year of existence.

      Meanwhile there will be a youth protest outside the South African
embassy in Trafalgar Square on Saturday against the country's softly
approach towards the Zimbabwe government. Free ZimYouth leader, Alois Phiri
Mbawara says it is time the youth from Zimbabwe got together and got
involved in the politics of their country. He adds there is need for the
youth to express their feelings towards African governments they feel should
be doing more to help the Zimbabwean cause.


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"Selfishness and Greed," the cancer affecting many African leaders

Zimbabwejournalists.com

      By Selbin Kabote

      AFRICA remains a continent enmeshed in poverty, lawlessness, greed and
related ills that should now be a thing of the past since we freed ourselves
from minority rule.

      The story of Africa is a painful one but the greater pain and
suffering is being afflicted on the continent by its presidents and prime
ministers who feel they have the God-given right to do as they please.

      The overwhelming majority of leaders in simply Africa lack vision and
have no other purpose of being elected except to steal money and control
heavily centralised state apparatuses.

      During the many years that I have been working as a journalist in
Africa, I have observed that many African presidents are never hesitant to
use brutal force and kill opponents in order to perpetuate their ruthless
and lawless tenures.

      During my tours of duty as a journalist in Africa, I have witnessed
numerous major conflicts on the continent, which have resulted in the death
of millions of people and left millions of others displaced in regions like
Darfur in Sudan.

      The death rate resulting from conflicts that are a by-product of
corruption and misrule are equivalent to the combined number of deaths in
the Vietnamese war, the First World War and the massacres perpetrated in
Africa during the colonial era.

      Some vivid historical examples of the corruption that is killing the
people and the economies of Africa include stories such as the reported
issue in which Moussa Traore's personal fortune in Swiss Banks was said to
be equivalent to Mali's external debt. When he was forced out of office by
the people of Mali, he ordered the army to fire on peaceful demonstrators,
thus slaughtering hundreds of innocent people.

      Another one is of the former President of Zaire, now the Democratic
Republic of Congo, General Mobutu Sese Seko.  Once ranked amongst the
richest people on earth while Zaire was going through the most cruel state
of deprivation, Mobutu Sese Seko plundered the country like his own
vineyard.

      Mobutu, who died in exile in Morocco in 1997, held an iron grip on
Zaire for more than three decades. He left the country in tatters due to
severe corruption. The country is still trying to recover from his legacy
with historic elections being held recently.

      The former Emperor of the Central African Republic, Jean Bedel
Bokassa, had a huge fortune and invested in castles in France. Bokassa was a
close friend of the former French President, Giscard d'Estaing.

      The former French President supplied the Central African Republic with
much financial and military backing. In exchange, Bokassa frequently took d'Estaing
on hunting trips in Africa, and supplied France with Uranium, a mineral
vital for France's nuclear weapons program. Also billions of Francs that
were stolen from the Central African Republic were lost to the benefit of
fat creditors of the western world.

      Bokassa is an interesting historical figure for he symbolizes perhaps
more than any other puppet in world history, the extent to which colonial
powers were in a position to empower useless, uneducated and perhaps even
mentally retarded Africans to maintain their domination. When the former
French President, General Charles de Gaulle died on the 9th of November
1970, Jean Bedel Bokassa was seen on French television crying uncontrollably
for his deceased master.

      Bokassa and his other counterparts in Francophone Africa, namely the
former Ivory Coast President, Felix Houphouet Boigny and the playboy Omar
Bongo of Gabon were known as regular contributors to the funding of French
political parties during presidential elections in France. Omar Bongo, who
has been in power for four decades, is popular for his love of the high
life. He had a reputation of flying French call girls from Paris, to the
lavish parties that he frequently hosted at his palace in the Gabonese
capital, Libreville.

      Even the late former Senegalese president, Leopold Sedar Senghor, who
was credited as a democrat and an intellectual with clean hands, used public
funds for his personal comfort and to fund members of the ruling party and a
host of political clients.
      The cruel legacy that was left by some of these men can present a lot
of lessons for the Africa of today.
      In my opinion, the lessons that can be derived from these historical
facts are that as long as African heads of states are artificially
maintained in power by one-party or corrupt multi-party systems, the
embezzlement of public funds will grow in a level of magnitude directly
proportional to the growing number of political protégés and clients, whose
votes and social influence must be bought in order to maintain corrupt
authorities in place.

      In Zimbabwe, while the ruling elites live in luxury in leafy and
affluent suburbs like Borrowdale, Mount Pleasant, Gunhill and other
residential areas, the majority of Zimbabweans have been reduced to Stone
Age scavengers.

      Many people in Zimbabwe are struggling daily to make ends meet in
Chitungwiza, Mbare, Epworth and many other places in Zimbabwe. The residents
of "Porta extension" are reported to be threatened with fresh evictions,
amid fears that they will be left without shelter during the coming rainy
season.

      Against this background, the other lesson that is derived from the
state of affairs in Africa is that it is the responsibility of civil society
and journalists to ensure that there are checks and balances at judicial and
parliamentary level in order to control the way the executive branch of
power uses public funds.

      Heads of states and government cannot judge themselves whether they
are honest or corrupt citizens. This task should be left to duly elected and
honorably members of parliament and to an incorruptible mechanism
independent of all branches of power.

      Also the incorruptible mechanisms that are independent of all branches
of power, must ensure that the public funds kept by African leaders in Swiss
bank accounts and other financial institutions, are returned back to the
States of dead, toppled and living African corrupt Presidents.

      The incorruptible mechanisms must also ensure that countries with
governments guilty of financial scandals and misuse of public funds should
not benefit from new loans given by some International Financial
Institutions.

      In my opinion, the argument that the end result would be a
perpetuation of the suffering of innocent populations does not hold.
Moreover, to act contrary to this principle, is tantamount to sabotaging
African economies.


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Elephant Overpopulation Keeps Cull Debate Simmering

IPS

Kudzanayi Shumba*

HARARE, Oct 9 (IPS/IFEJ) - Precious Nyoni, 35, resident of the Gokwe
district in southwest Zimbabwe, surveys his garden. The vegetable and
sugarcane stalks are flattened, and half-eaten crops lie all around. This
was his only livelihood, and in one night, it is all gone.

"(Zimbabwe's) liberation struggle ended in 1980. But now we have another
war, with the elephants. We are not allowed to kill them, hence we just
frighten them, but look, where am I going to get the food to survive when
everything has been trampled by these creatures?"

"They are too many and I believe they should be reduced through a culling
exercise. Just recently, elephants destroyed 50 hectares of maize crop
belonging to some villagers. It means that all of us need food assistance
even before we have harvested," Nyoni said, looking as devastated as his
garden.

More than 600km north of Gokwe, in the Omay communal lands of the Nyaminyami
district, farmers come down from a rickety treetop watchtower. They have
worked in shifts through the night, guarding their lands from being raided
by an elephant herd.

Southern African countries have been plunged into an elephant management and
ecological degradation crisis that demands urgent action.

In the 1970s and 1980s, the ivory trade decimated elephant populations in
Africa as the giant mammals were killed for their tusks. After the
Convention on International Trade in Endangered Species of Flora and Fauna
(CITES) banned trade in ivory in 1989, depleted populations began to recover
and now they are competing in some areas with humans for food and land.

An estimated 600,000 elephants roam the African continent. Fragmented
populations are to be found in 37 range states. Zimbabwe alone has a sixth
of the total population; nearly half of these crowded into the country's
most famous sanctuary, Hwange National Park.

Regional governments believe a legal and controlled ivory trade could bring
substantial economic benefits without jeopardising the conservation of the
species, or a further loss of biodiversity.

That could include halving the jumbo population to bring them to manageable
levels through translocation or exporting live animals to countries that
need them, which is approved by CITES. Also on the table is the
controversial culling method, which Zimbabwe would like to see resume after
a hiatus of 17 years. The practice was banned under CITES.

African countries have been divided over elephant culling. Kenya and some
West African states are strongly opposed to any resumption of the ivory
business, which they believe will provide cover for an illegal trade derived
from poaching.

Namibia, Botswana and South Africa are part of the pro-culling lobby. They
want to be able to trade their significant stockpiles of ivory to fund
conservation work.

CITES denied permission on Oct. 5 to the three countries to hold a special
sale of 60 tonnes of unprocessed elephant tusks they have stockpiled since
2002, a decision that will be reviewed at the 14th Conference of Parties
(COP 14) to the Convention, to be held in The Hague, Jun. 3-15, 2007.

At the last CITES conference, held in Thailand in 2004, Kenya's proposal for
a six-year moratorium on ivory trade was withdrawn, and Namibia's proposal
for an annual export quota of two tonnes of raw ivory was rejected.

However, permission was granted for trade in elephant hides and hair goods,
as well as non-commercial trade in worked ivory, provided it was accompanied
by a valid export certificate. South Africa also gained permission for trade
in elephant hides.

Tapera Chimuti, operations director of the Zimbabwe Parks and Wildlife
Management Authority, said the country was unlikely to ask for approval at
COP 14 to sell ivory.

"If we were to ask for approval to sell ivory today, the whole world will be
against us for political reasons, although we have the best wildlife
management practice in place in almost the whole continent," said Chimuti.

Meanwhile, the Zimbabwean authorities are encouraging the participation of
local communities in elephant conservation efforts, through the Community
Areas Management Programme for Indigenous Resources (CAMPFIRE), in which
villages are part of the decision-making process, and the main beneficiaries
of revenue earned from wildlife.

Based in Harare, CAMPFIRE was initiated in 1982, after an amendment of the
Parks and Wildlife Act (1975) that granted "appropriate authority" status to
popularly elected rural district councils so that they could manage and
benefit from the sustainable utilisation of wildlife.

According to the programme's director, Charles Jonga, CAMPFIRE has succeeded
in reducing conflict between people and wildlife, and has created
opportunities for sustainable economic development in Zimbabwe's rural areas
through natural resources management. Fifty-seven of the country's 59 rural
districts participate in the programme.

"CAMPFIRE's impact on national income is at least 10 million dollars
annually. If the multiplier on tourism activities is included, CAMPFIRE is
worth 20 to 25 million dollars to Zimbabwe's economy each year," Jonga
calculated in a Sep. 26 report.

Jockoniah Nare, the CAMPFIRE chairman, who lives in Beitbridge, nearly 500
km south of Harare, is of the firm opinion that the more a community
benefits, the greater its interest and investment in wildlife.

He recognised, however, that the social costs of living with wildlife can be
particularly high. They include, crop damage, threat to humans and
livestock, and the loss of land set aside for wildlife that could otherwise
be used for growing crops or other uses.

Elephants are responsible for up to 75 percent of all wildlife crop damage
in communal areas, with between 30 and 45 cases reported per ward every
season. Most rural communities are located close to rivers, and this
naturally creates competition for water with the wildlife.

Local communities have lived alongside elephants for centuries. But over the
last three decades, large numbers of migrants have come to the Zambezi River
area, attracted by the good farming conditions, and have captured
territories that are part of established elephant corridors, and around
waterholes.

Affected communities are not paid compensation by the government. However,
rural district councils under CAMPFIRE have set aside funds for loss of
property, crops and even death.

(*This story is part of a series of features on sustainable development by
IPS-Inter Press Service and IFEJ-International Federation of Environmental
Journalists.)

(END/2006)


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Zim and Russia sign deals

Zimbabwejournalists.com

      By a Correspondent

      HARARE - The Zimbabwe government signed deals worth $300m Monday with
the Russian conglomerate Rusaviatrade for a range of large-scale projects,
including a major upgrade of Harare airport.

      A Rusaviatrade spokesperson said memoranda of understanding had been
signed that will see Zimbabwe pay for improvements in the electricity
network, a rail link between Harare and the outlying suburb of Chitungwiza
and a new runway for cargo planes at the international aiport.

      Yuri Panchenko, external affairs director Rusaviatrade said that work
had already begun on the Buffalo Range airport project.

      "Right now our engineers are at Buffalo Range airport and once
everything is complete, it (the airport) will be able to handle a 737
airplane," he told reporters.

      Rongai Chizema, an official at the state-run Reserve Bank of Zimbabwe,
said it was important that all the agreements were put into practice.

      "Our objective is to create a win-win situation for both parties," he
said.

      The cash-strapped government of President Robert Mugabe has been
looking eastwards for new business partners since being boycotted by the
United States and European Union over allegations of rights abuses.

      Harare has strong political links with Moscow dating back to its
pre-independence days and Russia was the only European nation invited to
observe the disputed 2002 elections won by Mugabe.

      Moscow has also been showing increasing interest in possible
investment opportunities in the region.

      President Vladimir Putin led a large business delegation to South
Africa last month when a number of mining deals were signed.

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