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Police defy Mujuru

Zim Independent

Vincent Kahiya/Clemence Manyukwe

POLITICAL rivalry between feuding camps in Zanu PF has divided
government over the issue of price controls with police defying
Vice-President Joice Mujuru's calls to halt the arrests of company
executives.

Government sources said Mujuru, who supported industry against
harassment over price increases, had fallen out of favour with President
Mugabe who has given the law enforcers the greenlight to clamp down on
companies raising prices of basic commodities. A senior government official
was arrested this week for allowing an increase in the price of bread.

"There is now all the evidence that she is no longer the
anointed one," a source said yesterday. "When she became VP, Mugabe told the
nation that she should go all the way but his tone has now changed. It's
'the people' who now have to decide on succession."

The source said the conflict over price controls and the arrest
of company executives had opened a door to the rival camp led by Emmerson
Mnangagwa "whose star is definitely rising".

Caught in the cross-fire of the political rivalry is Industry
and International Trade minister Obert Mpofu who has become a target of his
colleagues who accuse him of giving the nod to price increases.

In addition to the government official, police this week
arrested company executives on allegations of illegally hiking prices. The
arrests are in defiance of Mujuru's order.

After the arrests of private-sector executives last month, the
Confederation of Zimbabwe Industries (CZI) and the Zimbabwe National Chamber
of Commerce confronted Mujuru.

CZI president Callisto Jokonya yesterday confirmed that they met
Mujuru who assured them there would be no more arrests in connection with
price controls.

"We had a meeting with the vice-president and she assured us
that it would not happen again," Jokonya said. "We have received information
that some wholesalers have been arrested today in connection with price
controls. We have talked to officials at the Ministry of Industry and they
say they are not responsible. We do not know where the order is coming
from."

Last weekend, Mugabe was singing a different tune to Mujuru.
Addressing a gathering in Gweru, he said people should "report" businesses
that hike prices.

"When we review salaries, we would have looked into prices. We
call on you people to report such businesses to us when they increase prices
of basic commodities like bread, mealie meal and sugar," Mugabe said.

Mpofu, recently back from an abortive mission to India,
yesterday said he had nothing to do with the arrests. Industry sources said
Mpofu had indicated the arrests were being instigated by a "third force"
which had usurped his power at the ministry. He confirmed to the Zimbabwe
Independent yesterday that he had nothing to do with the arrests.

"Why don't you talk to (Joseph) Malaba from CZI?" said Mpofu.
"We are really not involved in the pricing issue. It is them in industry who
are in charge and government is not in control. We do not know what is
happening. Talk to them about the arrests, they know better," Mpofu said.
Malaba is the CEO of the CZI.

Mpofu's ministry is supposed to chair the Price Stabilisation
Committee, a body mandated by cabinet to monitor and decide on the prices of
three basic commodities - flour, maize meal and bread. The committee
includes representatives from the private sector which holds the deputy
chair. The CZI represents the private sector on the committee.

The attack on Mpofu has manifested itself in the arrest of his
ministry's director of research and consumer affairs, Norman Chakanetsa, on
corruption charges. Chakanetsa, who chairs the pricing committee, was
arrested at his office on Tuesday and taken to Ahmed House. Police this week
also recorded a statement from Malaba regarding the issue.

Police spokesperson Assistant Commissioner Wayne Bvudzijena
yesterday confirmed Chakanetsa's arrest for authorising the bread price hike
while the Confederation of Zimbabwe Industries said some wholesalers had
been arrested in connection with the issue of prices.

"He was supposed to appear in court today for violating the
Prevention of Corruption Act. He is alleged to have increased the price of
bread without the necessary authority," Bvudzijena said.

Sources said price controls became even more divisive after the
arrest of business executives and the blasting of police by Harare
magistrate Peter Garufu as overzealous last month following the incident.

After the ruling, government called for a meeting of the police,
magistrates and prosecutors to advise them on how to handle cases to do with
price control violations.

Harare provincial magistrate Mishrod Guvamombe yesterday
confirmed the holding of the meeting but could not give details.

"I did not attend the meeting on price controls but there were
magistrates, the police, prosecutors and representatives from the Ministry
of Industry. There is a committee which has been formed," Guvamombe said.

* Meanwhile a Harare magistrate yesterday fined several
companies found guilty of violating price control regulations.

The companies were fined amounts ranging from $130 00 to $500
000. More companies are expeced to appear before the courts to answer the
same charges. The fined companies include Lobels, Innscor and Greatermans.


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Airzim charges handling taxes in forex

Zim Independent

Lucia Makamure

TRAVEL agents and passengers are in a quandary following a
decision this week by Air Zimbabwe to charge airport handling taxes in
foreign currency.

The decision has jeopardised travel plans for many over the
coming festive season.

A memorandum sent to travel agents on Monday instructs them to
"collect taxes that do not accrue to government and remit these to Air
Zimbabwe".

Air Zimbabwe yesterday increased fares by between 300% and 350%.

Passengers travelling to and from London are now required to pay
US$76 over and above the fare of $1,4 million. The taxes for those
travelling to China are US$11, Dubai US$8 and South Africa US$31. The local
currency component of the fares to the destinations is $2,5 million, $1,3
million and $340 000 respectively.

Agents are now required to collect the taxes in US dollars
together with the airfare unlike in the past when they sold tickets
incorporating required taxes in local currency.

"The banks won't give you the foreign currency for the taxes.
They laugh at you when you try to make an application," a travel agent who
refused to be named told the Zimbabwe Independent on Wednesday.

"The only way to get the foreign currency is on the black
market. I find it difficult to understand how passengers are expected to get
the hard currency when banks cannot assist because they say they do not have
any," the travel agent said.

The national airline has blamed the unstable currency exchange
rate for its losses after collecting departure fees in local currency for
destinations out of the country where they are required to pay in foreign
currency.

Air Zimbabwe spokesperson, David Mwenga, said Air Zimbabwe had
been losing millions of dollars after remitting foreign currency to
authorities in other countries.

"Air Zimbabwe had been losing a lot (after) collecting (taxes)
in Zimbabwe dollars, for departure fees out of Johannesburg or London or any
other external departure point but remitting to the authorities in those
destinations in foreign currency," Mwenga said in response to questions from
the Independent.

"Because of the changes (increases) in exchange rates, we often
end up making losses, as we are obliged to remit the exact foreign currency
component to the authorities, sourcing that foreign currency at a loss to
ourselves," said Mwenga.

There was no confirmation of where the airline has been sourcing
its foreign currency all along but central bank governor Gideon Gono is on
record as saying the airline has been on a life support system from the
central bank.

"We now require that even if you are a Zimbabwean and pay your
fares in local currency, for any travel outside our borders, where airport
departure fees are required to be paid in foreign currency, the passenger
now pays that portion in foreign currency," said Mwenga.

Because of the losses incurred, the airline owes foreign
creditors US$23 million and $400 million to local creditors, excluding the
Parastatals Reorientation Programme (PARP) loans that stood at $1,381
billion and $2,6 billion which was advanced to the parastatal without being
covered by PARP as at July 31.


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DRC diamond venture haunt former colonel

Zim Independent

Clemence Manyukwe

A FORMER army colonel will today testify in the High Court in a
case in which some people are alleging that they were never paid for
services rendered at a diamond mine in the Democratic Republic of Congo
(DRC) in 2000.

Retired Colonel Paul Kujoko, who is said to be working in Mt
Darwin at a youth training centre under the Youth ministry, will testify in
the matter in which Urayayi Sakupwanya is suing businessman Lloyd Hove and
Thabs Marketing for non-payment of over US$21 000 for the work he did at the
mine in the DRC.

In court papers, Hove is said to be the company's executive
chairman.

Giving evidence in court yesterday, witness Lyndon Kapuya said
he was employed by Thabs Marketing and worked in the DRC for more than a
year but was not paid.

He said none of the workers who worked for the company in the
mineral rich country were given salaries supposed to be in US dollars.

"When we left for the DRC there was Colonel Kujoka, Major
Muguyo, Mr Hove, myself and a Kennis," he said.

He said in the DRC they were joined by other Zimbabweans
including Sakupwanya.

"We were not paid any salaries. None of us were paid," Kapuya
said.

He said although they were working for Thabs Marketing they were
made to sign a contract with a company called Dube and Associates and Thabs
Marketing guaranteed the contract saying in the event of a dispute it would
take full responsibility.

Kapuya said he had approached Hove for the payments, but he
claimed that he did not have the money but would pay him when his fortunes
improved.

Documents filed with the court by Sakupwanya say Dube and
Associates is not registered according to the law.

Asked under cross examination whether there had been any
allegations of misconduct levelled against Sakupwanya, Kapuya said there had
been a single incident.

He said at one time the plaintiff was ill and was told to go
home and when they were at a place called Kananga the mine's head of
security phoned and said Sakupwanya had some diamonds.


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Langa pressed to drop charges

Zim Independent

ZANU PF national chairman John Nkomo last Friday ordered deputy
Environment and Tourism minister Andrew Langa to drop his court case against
Small and Medium Enterprises Development minister Sithembiso Nyoni.

Nkomo summoned the two Zanu PF lawmakers to his Harare office to
resolve the dispute between them, which resulted in Langa reporting Nyoni to
the police.

Nkomo confirmed that he had a meeting with Langa and Nyoni.

"I did call a meeting to solve the problems between Langa and
Nyoni. What I wanted to do was to help them bury the hatchet," said Nkomo.

Langa also confirmed that they met Nkomo at his Harare office.

"We met the Speaker of Parliament at his office to try and come
up with a good working relationship between the two of us," said Langa. "As
we talk now there is no more police case between us."

Police spokesman Assistant Commissioner Wayne Bvudzijena on
Tuesday confirmed that Langa had withdrawn his case.

"The case has been withdrawn," said Bvudzijena.

Efforts to get a comment from Nyoni were fruitless as she was
not answering her mobile phone.

Nyoni was reportedly miffed by Langa's comments allegedly made
at a meeting with farmers at Kombo area in Fort Rixon that senior
politicians in the area were behind a wave of stock theft around Fort Rixon.

Sources said Nyoni felt the comments were directed at her as
they came amidst reports that 18 stolen head of cattle had been positively
identified by the owner, Robert Bruce Moffat, at her farm near Kombo area.
Reports said stolen beasts had allegedly been driven to Nyoni's farm where
brands with Moffat's identity were tampered with and replaced with Nyoni's
brands. - Staff Writer.


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Konare's no-show miffs rights goups

Zim Independent

Augustine Mukaro

HUMAN rights organisations have expressed disappointment over
African Union chairperson Alpha Omar Konare's failure to meet civil society
during his recent visit to the country.

Konare was in Zimbabwe last Friday but snubbed the human rights
activists. He only met President Robert Mugabe on what he said was a
"consultation of Africa's elder statesman and a founding father of the AU on
resolving conflicts in the Sudan, Democratic Republic of Congo, Somalia and
Ivory Coast".

The National Association of Non-Governmental Organisations
(Nango) confirmed that Konare rejected its members' efforts to meet him for
an appraisal of the Zimbabwe situation.

"We appreciate the urgent need to resolve the crisis in Sudan
and the region but there is a strong feeling that the Zimbabwean situation
is equally important," Nango spokesman Fambai Ngirande said.

"We would have wanted to give the chairman an update on
government's reluctance to implement the African Commission's
recommendations on the rule of law, continued evictions and horrible living
conditions for the victims of Operation Murambatsvina."

Zimbabwe Lawyers for Human Rights (ZLHR), which played a pivotal
role in the compilation of a shadow report on rampant human rights
violations presented to the African Commission for Human and Peoples' Rights
(ACHPR), an arm of the AU, expressed concerned at Konare's behaviour.

"We are concerned with Commissioner Konare's failure to meet
civic organisations despite the fact that the ACHPR presented him with
(evidence of) a disturbing human rights situation in Zimbabwe," Otto Saki of
the ZLHR said.

Human Rights Trust of Southern Africa (Sahrit) director Noel
Kututwa said he was saddened that Konare ignored them.

"We are unhappy with the development," Kututwa said. "AU as a
political body tend to side with government which is one of the reasons why
Zimbabwe is getting away with gross human rights violations such as
Operation Murambatsvina."

l In a letter to President Mugabe in April, ACHPR chairperson
Ambassador Salamata Sawadogo said Zimbabwe should take provisional measures
to avoid causing irreparable damage to victims of the operation.

"The African Commission, having examined the request of the
complainants, has decided, in conformity with Article 111 of the African
Commission's Rules of Procedure, to request Your Excellency and the
government of Zimbabwe to take provisional measures to obviate the general
deterioration of the health of 34 terminally ill individuals infected by
HIV/Aids and who, due to Operation Murambatsvina, are said to lack access to
medical treatment, in particular anti-retroviral drugs," his letter says.

Sawadogo said government had to ensure that the 210 children
displaced by the operation were given an opportunity to pursue their
education.


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Murky Russian deals in doubt as . . .

Zim Independent

Augustine Mukaro

CONFUSION reigns in government circles over how to kick off
deals signed with China and Russia.

Three of the five deals secured by government with a Russian
delegation last week overlap and in most instances duplicate similar deals
signed with the Chinese earlier this year.

Russian investment company RusAviaTrade signed a deal with the
Zimbabwe Electricity Supply Authority and Hwange Colliery, promising to
upgrade the operations of the two companies. Government in February signed
similar deals with Catic of China to rehabilitate and expand the production
capacity of Hwange Colliery Company, making the Russian deal a duplication
of the of the previous agreement. The Chinese deal was valued at US$70
million.

RusAviaTrade's deal with Zesa's subsidiary Zimbabwe Power
Company is again a replica of Catic's agreement with the same subsidiary
through which Hwange thermal power station was to be expanded under a US$400
million deal.

RusAviaTrade's deal with the Civil Aviation Authority of
Zimbabwe is also replicated in an agreement signed between Chinese companies
and the same parastatal.

Critics this week questioned whether the Chinese deals had been
set in motion before similar understandings were entered into with the
Russians. In addition, Zesa, Hwange and CAAZ, the Zimbabwe Tourism Authority
and the Ministry of Transport and Communications also signed deals with the
Russians and are expected to benefit from the investments.

The Russian overtures follow similar attempts at investments
from Chinese and South Korean companies in June, giving a faint hope to the
fastest shrinking economy in the world.

The country's hostile investment climate, coupled with political
instability and lawlessness in the form of property rights violations, as
well as continued shortages of foreign currency, fuel, electricity, spares
and basic commodities, have deterred foreign direct investment from
traditional western companies. It is unclear how Russian investors plan to
sidestep these pitfalls.

The 48-member Russian delegation, which included 17 journalists,
explored other investment opportunities. RusAvia Trade provide Russian
aviation products, including new and used aircraft, helicopters, spare parts
and related services.

Its parent company is RusAvia Group, a group of Russian and
Western companies involved in the aviation business. The group includes
design and production companies, exporters and companies related to the
Russian aerospace industry.

Zimbabwe is trying to buy commercial aircraft from Russia to
boost its depleted national fleet. Government recently ordered several
Russian planes for national carrier Air Zimbabwe, but the airline's
engineers have rejected the aircraft, saying they were "flying coffins".

RusAvia director for external affairs Yury Panchenko said the
group of Russian investors would return in a month to follow up on their
deals.

"We will create a website to tell the Russian business community
about investment opportunities in Zimbabwe," Panchenko said at the weekend.

The delegation left the country last Tuesday after a seven day
visit.


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Government seeks US$30m for Zesa

Zim Independent

Loughty Dube

GOVERNMENT is trying to raise US$30 million required by the
Zimbabwe Electricity Supply Authority (Zesa) to purchase spares to repair
six damaged generators at the Hwange power station.

Zesa also wants to use the money to refurbish the entire power
station that is operating at far below capacity.

The six generators at the power station developed faults last
week and caused a serious electricity deficit that had large parts of the
country going without electricity for periods of up to 10 hours daily.

The generators were resuscitated late last week but four of them
are operating way below capacity while the other two have completely packed
up.

Zesa corporate affairs manager, James Maridadi, this week
confirmed that government was trying to raise US$30 million for the power
company to refurbish Hwange power station.

"We have made an appeal to government for US$30 million to
enable us to repair the six generators and refurbish the power station.
Government is frantically looking for the cash for us," Maridadi said.

The country's power problems worsened after the main line
drawing power from the Democratic Republic of Congo (DRC) was damaged.

Maridadi said Hwange power station was in "crisis operations".

"As we speak right now, four of the generators are operating on
a limping basis while two are completely non-functional," he said.

"From a capacity output of 740 megawatts, Hwange power station
is generating an erratic 300 and 400 megawatts of electricity a day,"
Maridadi said.

Zimbabwe needs over 1 200 megawatts of electricity a day and the
power deficit has forced Zesa to introduce load-shedding.

Maridadi however said the Bulawayo thermal power station, one of
the three thermal power stations that were not operational due to coal
shortages last week, was now operational while Munyati and Harare thermal
stations were still out.

"The coal shortages that forced the three thermal stations to
cease operations are still persisting but the Bulawayo power station is back
in operation," he said.

To make up for the deficit, Zimbabwe imports more than 30% of
its power requirements from the DRC while additional power is imported from
South Africa, Mozambique and Zambia when they have excess capacity.

Maridadi said Zesa's pricing system was not viable and that this
had contributed to the organisation's reliance on government for support.

"There is need to review our tariffs which are sub-economic. We
import electricity at a higher rate than we are selling it and we are urging
government to reconsider the pricing system," Maridadi said.


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Mangwana jibe riles scribes

Zim Independent

Shame Makoshori

ACTING Information minister Munyaradzi Paul Mangwana last Friday
angered journalists by saying he was concerned by "paupers" in the
profession.

He was speaking on media regulation at the Quill Club in Harare.

The newsmen from the private and public media objected to the
utterances, reminding Mangwana that government was to blame for the high
unemployment levels among journalists because it had sanctioned the closure
of private newspapers.

Since 2003, government has shut down the Daily News, the Daily
News on Sunday, the Tribune and the Weekly Times.

Zimbabwe has also witnessed high-handed arrests of journalists
in the private media, very often where there was no case against them.
Mangwana said journalists complained too much about Zimbabwe's draconian
media laws instead of confronting their employers for better salaries and
working conditions.

He claimed that journalists were fighting wars on behalf of
publishers and editors when their stomachs were empty.

"I am concerned when I see paupers among journalists," Mangwana
said. "There is high unemployment among journalists. Instead of complaining,
why can't you organise yourselves for better salaries, form an NEC (National
Employment Council) for journalists, for example, which will set minimum
salary levels?"

But while Mangwana complained about poor remuneration,
journalists said his ministry had done little to improve salaries and
working conditions for journalists working for public media institutions.

Mangwana criticised the private media, singling out the Zimbabwe
Independent for reporting negatively about government.

"I was reading the Independent one day and from page 1 to 45
there were negative stories about government. Does it mean that government
had done nothing positive in that week?" the minister complained.

He said while it was acceptable that society had divergent
views, media practitioners should also complement government efforts in the
national interest.

In response journalists queried why government wanted them to
keep quiet when it blatantly violated human rights, the rule of law, muzzled
the media and when there were high levels of corruption in high office.

When Mangwana raised allegations of corruption among
journalists, the newsmen demanded to know the whereabouts of a report on
corruption at troubled steel company, Ziscosteel.


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Wagon shortage undermines fertiliser, wheat imports

Zim Independent

ZIMBABWE'S bulk importation of fertiliser and wheat from
neighbouring countries is threatened by a shortage of wagons. The National
Railways of Zimbabwe (NRZ) has admitted that it was difficult to move the
consignments as it has a shortage of 2 239 wagons.

Zimbabwe is facing a critical shortage of wheat and fertiliser,
a situation that has led to bread shortages and compromised the national
crop harvest.

The government has released conflicting statements on the
expected winter wheat harvest, saying it is expecting sufficient wheat
supplies. But statements from NRZ officials last week revealed that
government was in the process of importing wheat and fertiliser from
neighbouring countries.

The NRZ this week said it would need a further 2 239 wagons to
complement its current rolling stock to move the anticipated bulk imports of
fertiliser and wheat.

NRZ general manager, Retired Air Commodore Mike Karakadzai, told
stakeholders at a strategic meeting organised by the company last Friday in
Bulawayo that the NRZ faced a shortage of wagons.

The NRZ currently has 5 638 operational wagons but requires 7
412 wagons to service the 2 759 kilometre local rail stretch.

"At the present moment we have 5 638 wagons that are in service
against a requirement of 7 412 wagons," Karakadzai said. "The shortfall of 2
239 will have a negative impact on our operations as we move the fertiliser
and wheat that the country is going to import as from now onwards."

But a senior member of Operation Maguta taskforce, Air Marshal
Henry Muchena, on the same day told a National Economic Development Priority
Programme meeting in Bulawayo that the country's winter wheat programme had
surpassed its targets after putting 30 500 hectares under crop in the
2005/06 season.

Muchena said the hectarage was expected to yield a minimum of
120 000 tonnes of wheat.

Giving an overview of operations at the company, Karakadzai said
the NRZ had a potential to move 18 million tonnes of goods a year but that
it was currently moving a mere 9,4 million.

It also emerged during deliberations that there were serious
cases of pilferage on NRZ trains.

The NRZ came under fire from customers who highlighted pilferage
cases of goods being transported by the NRZ.

Delegates also took a swipe at the NRZ for refusing to take
responsibility for stolen or lost goods under its care and said the company
should tighten its security controls.

In response Karakadzai said the issue of pilferage on NRZ trains
was an insurmountable challenge.

"The issue of pilferage is insurmountable and we have had cases
where guards are involved in fuel, sugar and cement pilferage but there is
security provided for sensitive cargo and we have enlisted the Zimbabwe
National Army to escort such cargo. We are also beefing up our security," he
said.

Turning to the challenges facing the company, Karakadzai said
ageing infrastructure, shortage of business opportunities, shortage of
foreign currency to purchase spares, a serious brain drain, theft and
vandalism were hampering the company's progress. - Staff Writer.


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Diamond rush: govt advertises free-for-all to investors

Zim Independent

Vincent Kahiya recently in Maranage

"AMONG all the stones that our world's fancy holds precious, the
diamond stands preeminent," wrote J Willard Hershey in The Book of Diamonds.
"The diamonds that gleamed with such fire in an idol's eye before the rising
of the Star of Bethlehem may be sparkling today with more dazzling radiance
in the crown of an emperor."

And how appropriate is Hershey's observation today. Diamonds are
as attractive to the devil as they are to rulers who have fought wars over
the precious stones. When managed properly, they are a symbol of national
pride and in equal measure a source of disgrace if mismanaged.

Botswana and the DRC stand out as modern examples of the
positive and negative impacts of diamonds on a country.

Zimbabwe, which recently discovered diamonds in Marange communal
lands in Manicaland, appears keen to mishandle the precious stones and as
usual gain a measure of notoriety.

The reckless exploitation of the minerals in the low rainfall
area, dominated by rocky terrain and thorny bush, should rank as a national
blunder that has serious ramifications for investment in the mining sector.
A visit to the area last weekend revealed the sad state of mining policy in
Zimbabwe where politics appear to supersede rational thinking.

The drama manifests itself along the Mutare-Masvingo highway,
between Chakohwa and Nyanyadzi business centres where youths converge in
small lively groups under trees and on shop verandahs gulping quarts of
clear beer as if their lives depend on it. Young ladies have also joined in
the act. Their animated discussions and barnyard laughs betray the contents
of the soft-drinks bottles in hand. They contain a potent mixture of soda
and cheap cane spirit.

They carry small bags packed with wads of bank notes and
tumapuwe (small stones) which have become a new source of paper wealth for
the youngsters. They do not know what to do with the vast amounts which they
carry around, it appears. That they are overwhelmed by their new-found
wealth is evident in the way they appear to be in competition with each
other to spend it as quickly as possible. Beer is not bought in rounds but
in crates. Even strangers are allowed to join in the binges provided they
speak the same language of kumunda (field).

The field is the source of this debauchery. It is the place in
the Chiadzwa area of Marange about 90 km east of Mutare where politicians
have given villagers the go-ahead to mine diamonds from claims owned by
Consolidated Resources Africa.

The scene in the field is that of mayhem, social decadence,
entrepreneurial theft and all the crookedness that obtains when leaders
temporarily suspend the law to allow madness to take control. The
forty-niners of the Pacific North-West, if they were around today, would
recognise all the facets of this latest "rush".

Last Saturday afternoon there were at least 500 miners at the
claim, each in a race to extract the small stones from the belly of the
earth. They do this under the watchful eyes of the Central Intelligence
Organisation and the police who have set up a temporary post at the mine.

Amid the acrid smell of sweat and human waste, the miners work
the diamond pipes with picks and shovels. Local teachers and their pupils,
policemen and council workers have joined in the rush. This is a race to
riches but it comes at a huge cost to the environment. When senior Zanu PF
politicians gave the villagers the go-ahead to mine, no environmental impact
assessment had been carried out at the mine and its environs. There are no
toilets or safe drinking water for the huge throngs gathered there daily.
This is a cholera outbreak waiting to happen.

The threat to the environment has been superseded by the
elemental drive for wealth. Huge trees which stood on the diamond pipes have
been uprooted and quickly chopped up to provide firewood for the makeshift
kitchens.

After digging up the ground, the soil is put in a sieve which
removes fine sand to leave small pebbles among which are "greens",
industrial diamonds and "maglass", the ornamental ones.

The Minerals Marketing Corporation of Zimbabwe (MMCZ) has been
sending its officials to buy the stones but they cannot buy everything
available. This has attracted illegal buyers who openly purchase the stones
at Chakohwa and Hot Springs.

I witnessed a man in a silver Mercedes Benz S320 handing a
youngster a supermarket plastic bag full of notes in exchange for maglass.
The youngster sporting a crisp Brazilian national soccer team jersey walked
away $450 000 richer.

"That was nothing (the money) because I could have earned more
if I had sold them to MMCZ but they do not bring enough money to buy the
minerals," he said.

The informal buyers resell the stones to MMCZ, earning huge
profits. They are not the only ones cashing in on the bonanza.

Informal traders have stormed the area. They have set up stalls
where they display anything from condoms, razor blades, and sanitary pads to
clothing, beer and groceries. Others cook food and sell it at the site and
there are opportunists scouring the ground for stones dropped by the miners.

But very little money changes hands at these stalls. All trade
is barter. They exchange their wares for the diamonds which they then
resell. Business is brisk here because the villagers have suddenly developed
not-so-common tastes like mid-afternoon tea.

Nightfall brings in new forms of entrepreneurs.

They stand on the paths used by miners retiring to their
villagers. Prostitutes attracted by the large number of young carefree men
openly advertise their services. They do not want cash for their industry.
They want tumapuwe instead. The services are sometimes rendered in the open.

The sudden wealth displayed by individual miners however is in
sharp contrast to their surroundings, dominated by rickety huts and a very
poor road network, save for the main Mutare-Masvingo highway.

The rocky dirt road to the mine crosses the Odzi River via a
narrow bridge whose approaches from either side feature frighteningly steep
gradients.

Buses that had long shunned the rutted road now make daily trips
to the mine from Mutare bringing in merchants, prospective miners and
criminals.

It is a cauldron of disorder that is not likely to benefit the
area at all. There is now a separate diamond-based economy where prices of
commodities in shops are determined by the price of the stones. But all in
all the area remains poor.

The local council is not collecting any royalties or levies from
the miners. The buyers and miners are not paying any taxes and meanwhile the
major national resource is exploited to satisfy political ends. It is a
terrible advertisement for anyone thinking of investing in the mining
sector - an unregulated free-for-all where the existing claim holder has
lost its rights to politicians and freebooters.

Two years ago there was another human throng in the province of
Chimanimani where gold panners laid siege to the district. There were
similar scenes of free-spending, bags of cash and politicians turning a
blind eye. Billions of dollars worth of gold was extracted from the area and
no infrastructural development took place there.

Zimbabwe has a choice to go the Botswana/Namibia route where
diamond mining is strictly controlled and the national fiscus benefits, or
to follow the precedent of the DRC where political and military
carpet-baggers take control amidst widespread pillaging of a vital national
resource.

It looks like the latter course has already been embarked upon.


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Domestic Violence Bill stirs fiery debate

Zim Independent

Ray Matikinye

UNTIL authorities decided it was rather niggling to enforce a
law penalising a stranger for winking at a woman by classifying batting an
eyelid as a form of sexual harassment, Zanzibari women appeared overly
protected.

The pesky law in religious communities raised controversy as to
defining how the flutter of an eyelid should constitute an offence.

Women themselves found it embarrassing to take strangers to the
community court and prefer charges that he had intentionally twitched his
eyelid at them. And complainants had to prove "beyond reasonable doubt" that
it was not just an involuntary twitch but that the stranger rippled his
eyelid intentionally for more than three seconds.

Such imprecise definitions seem to have crept into Zimbabwe's
new Domestic Violence Bill currently under discussion in parliament.

Women that paraded the streets a fortnight ago to protest
Mabvuku-Tafara legislator, Timothy Mubawu's utterances during debate on the
Bill might have clapped their hands too early before they had all their
ducks in a row.

The Bill has an ominous catch. A person that makes "any false
statement in any application or affidavit made in terms of this Act, knowing
such statement to be false or not believing it to be true, shall be guilty
of an offence and liable to a fine or to imprisonment for a period not
exceeding five years or to both such fine and such imprisonment".

The MP raised the protesters' wrath with his biblical references
to the highly controversial Bill that caught cultural revivalists, orthodox
Christians and modernists alike in a flat spin.

Mubawu dared stand alone like Daniel in the lion's den for
saying that the Bill against domestic violence was diabolic.

"I stand here representing God, the Almighty. Women are not
equal to men," Mubawu told fellow legislators during debate.

"It is a dangerous Bill and let it be known in Zimbabwe that the
right, privilege and status of men are gone. I stand here alone and say this
Bill should not be passed in this House. It is diabolic."

His supporters say the Bill could trigger matrimonial upheavals
on a scale never seen before.

Domestic violence has for long been conceived primarily as a
private family affair to be resolved silently within the walls of the home.

But women's rights lobbyists seem to have triumphed in turning
the age-old marital harmony on its head, according to critics.

Said Kadoma West MP Zacharia Ziyambi: "There are certain
cultural values that shape every family which are likely to be at stake with
this legislation and many families are going to break up."

In terms of the Bill, domestic violence means "any unlawful act,
omission or behaviour that results in death or the direct infliction of
physical, sexual or mental injury to any complainant by a respondent".

It includes such acts as physical abuse, sexual, emotional,
verbal and psychological abuse, economic, intimidation, harassment and
stalking.

When enacted the legislation will penalise perpetrators for
abuse derived from any cultural or customary rites or practices that
discriminate or degrade women.

These include a raft of transgressions such as forced virginity
testing, female genital mutilation, pledging of women or girls for the
purposes of appeasing spirits, abduction, child marriage, forced marriage,
forced wife inheritance, sexual intercourse between fathers-in-law and newly
married daughters-in-law.

Whereas the privacy of the home and the centrality attributed to
intimate relations are valued, privacy and intimacy often provide the
opportunity for violence and the justification for non-interference.

But Mubawu was not standing alone when he made the assertions
that prompted women into pillorying him.

Chief George Chimombe, a representative of the chiefs in
Manicaland, pointed out that the proposed Act was vague in relation to
virginity tests.

The traditional chief, a cultural revivalist, argued in defence
of virginity tests, saying the law was seeking to take the practice out of
context, disregarding its advantages.

"Virginity testing is not conducted by just anyone," he argued.

"There are selected elderly women in the villages who are
responsible for that," he added, citing an incident when the cultural norm
helped expose cases of child abuse, resulting in the culprits being brought
to heel.

It could take a lot to define some sections of the
well-intentioned Bill such as "emotional, verbal and psychological abuse"
which the Bill says mean a pattern of degrading or humiliating conduct
towards a complainant.

Women lobbyists, however, have hailed the Bill as long overdue.

"Women were crying for such a Bill and were getting
disillusioned by the delays. We now have hope that government is showing
concern about domestic violence," Angela Makamure of the Federation of Media
Women of Zimbabwe, said.

"Not everything in the Bill is rosy though. For instance the
Bill is vague on sheltering for the victim of domestic violence," she added.

"It might not appeal to economically challenged women whose
husbands are the sole breadwinners because once convicted under the Act, the
breadwinner could spend some time in jail, creating hardships for the
family," Makamure said.

"A husband coming from prison might be hardened by the
punishment to the extent that he no longer loves his spouse. Either of the
spouses could easily be ostracised by the relatives and the Bill is silent
on the safety nets in such instances."

She also said the Bill should have been taken on a roadshow to
the rural areas before it was tabled to allow rural women to input into it.

But director of Women's Action Group (WAG), Edna Masiyiwa, said
this had been done.

She said it had taken too long for the Bill to come to
parliament.

"We have worked for this type of Bill for the past six years
since 2000. It is something that we have been wanting and we are glad it has
finally come about. I hope it will be passed soon."

Masiyiwa said in collaboration with Msasa Project, WAG had been
running workshops in rural areas such as Guruve and Marondera to sensitise
women about domestic violence.

"We will continue pushing for as many rural women as possible to
know how the Bill protects them," she said.

Enforcers will find it asocial to charge offenders for "the
repeated exhibition of obsessive possessiveness or jealousy", just as the
Zanzibari women felt they were overly protected from legitimate courtship.

Seeing the vague definition, Justice minister Patrick Chinamasa,
on Tuesday, proposed to amend contentious sections that deal with jealousy,
and unreasonable denial of conjugal rights.

"I am impressed by the debate over the Bill and praying that it
sails through parliament," a University of Zimbabwe media student, Cleopatra
Ndlovu, said.

She said it was evident from the divisions between men and women
parliamentarians over the Bill that some men had unfounded fears that the
Bill was meant to penalise men only by disempowering them.

"The Bill penalises both and will foster harmony in the
families."

For communities that had invested all their faith in a harmless
connivance allowing sexual intercourse between fathers-in-law and newly
married daughters-in-law, and other such practices to guarantee continuation
of a generation, the Bill could be diabolic.

The Bill seeks to punish spouses for unreasonable deprivation of
economic or financial resources to which a complainant is entitled under the
law or which the complainant requires out of necessity, including household
necessities, medical expenses, school fees, mortgage bonds and rent
payments, or similar expenses.

On economic abuse, spouses "shall be guilty of an offence and
liable to a fine not exceeding level fourteen or to imprisonment for a
period not exceeding ten years or to both such fine and such imprisonment".


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Banking sector uneasy as RBZ bonds mop $65 billion

Zim Independent

Dumisani Ndlela

THE Reserve Bank gobbled up a massive $65 billion from the
market through financial sector stabilisation bonds on Monday but failed to
sink the market into deficit, triggering fears in the banking sector that it
could respond with drastic measures to induce shortages.

The central bank has used tight monetary policy as its chief
instrument in reining-in rampant inflation, currently topping 1 000%
year-on-year.

"We fear the worst," a money market dealer told businessdigest
yesterday. "The feeling in the banking sector is one of fear - we fear the
(central) bank could come up with something drastic to create a deficit
market."

The market went short to the tune of $10 billion on Monday after
financial institutions scurried to comply with a Reserve Bank directive
forcing them to hold a prescribed amount of the bonds on their books.

"This is against all expectations in the market," a bank
treasurer said. "We expected heavy shortages."

The market expectation had been that the market would plunge to
shortages as high as $30 billion on take up of the bonds.

The shortages softened on Tuesday to $2,7 billion before the
market rebounded to a surplus position of $1,6 billion on Wednesday.

The market was forecast up $8 billion on Monday on the back of
heavy treasury bill maturities.

Market players said there had been massive inflows into the
market whose sources were not been clear.

But speculation swirled that the central bank was heavily buying
foreign currency, injecting huge amounts of money into the market in the
process.

Some financial institutions had also been allowed to access
funds locked up in the non-interest yielding non-negotiable certificates of
deposit, and this had helped bolster liquidity on the market.

Reserve Bank governor Gideon Gono said last week the bonds,
whose holding thresholds for financial institutions would be pegged against
the institution's balance sheet size as at September 30, 2006, would "ensure
that the financial sector further strengthens its medium to long-term
position".

A commercial banking institution is required to hold bonds
equivalent to 10% of the balance sheet size, while a merchant bank's holding
threshold for the bonds is pegged at 7,5%.

Finance houses, building societies and discount houses' holding
thresholds are 5% of the balance sheet size per institution, with asset
management firms compelled to hold bonds amounting to 2,5% of their balance
sheet sizes.


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8 000 textile workers lose jobs

Zim Independent

Shame Makoshori

ABOUT 8 000 workers lost their jobs in Zimbabwe's troubled
textile sector over the past five years while the fate of 16 000 more is
uncertain due an influx of cheap Chinese imports that have hurt demand for
domestic products.

The local textile industry's woes have been exacerbated by
foreign currency and raw material shortages and the hyperinflationary
environment in the country.

Textile industry executive Jane Mutasa told businessdigest that
employment levels slumped from 24 000 workers in 2001 to 16 000 this year
and more companies have warned they might wind up unless the problem of raw
material and foreign currency shortages is solved.

Mutasa, who is the president of the Indigenous Clothing
Manufacturers Association with a membership constisting of about 40% of the
sector, ruled out prospects for immediate recovery, citing the escalating
cost of production, rampaging inflation and Zimbabwe's drying foreign
currency coffers that have affected critical raw material imports.

"From a total of 24 000 workers in 2001 the sector now employs
16 000 people," Mutasa said. "This shows the rapid deterioration that we are
grappling with. Companies have no fabric, manufacturing chemicals, dyes,
spares and raw materials."

She added: "Millers are not producing enough fabric to keep
factories running. Even if we get the fabric it is very expensive, which
makes operations unviable. People's capacity to buy clothes has been wiped
away by inflation. They are prioritising food."

Textile companies have been affected by an influx of cheap
Chinese goods that have resulted in the market abandoning local products.

Last week, the European Union also complained bitterly about
Chinese shoes making inroads into that bloc and threatened to block further
importation of the shoes to save EU companies from imminent
collapse.

Mutasa said to avert further deindustrialisation, local
companies required cheap working capital injections to bolster capacity.

The Reserve Bank of Zimbabwe provided companies with $2,7
trillion in old currency in working capital at 50% interest rates through
the Productive Sector Facility in 2004.

But this was not enough to eliminate the distress in the
clothing industry.

The National Union for the Clothing Industry (NUCI) said in the
past 12 months it had handled hundreds of labour disputes as workers
contested their employers' decisions to slash working hours from 48 hours
per week to 24 hours in response to the economic crisis.

One such company was Concorde Clothing, which streamlined its
staff complement from 600 in 2001 to 170 and is operating below 50%
capacity.

Even the streamlined staff had been working for three days per
week in the past three months.

NUCI figures indicated that in the past two months, two more
companies had liquidated, throwing about 300 workers out of employment.

Others applied to the National Employment Council for permission
to send workers on unpaid leave until next year.

Clothing industry experts said this was a bad signal because
traditionally this was the busiest time of the year when companies prepare
for the festive season.

NUCI deputy secretary-general Joseph Tanyanyiwa said the
scenario at Concorde Clothing was an emblematic of the crisis facing the
entire industry.

He said one of the recent worst cases was the closure in 2004 of
Export Processing Zones Authority licenced Fannick Clothing, which affected
1 200 workers.

Fannick exported 80% of its output to western markets.

Clothing industry executives who spoke to businessdigest last
week said their decision to reduce working hours was meant to keep their
companies running and retain jobs until the situation improved.

Zimbabwe's manufacturing sector has been in steady decline since
2000 when government forcefully dispossessed productive white farmers from
their land, replacing them with undercapitalised black farmers.

A Confederation of Zimbabwe Industries report last year said the
sector would continue to record falling turnover unless corrective measures
were put in place.

The economy is currently in its sixth year of recession, with no
signs of recovery.


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We don't care about cheap imports: Chihota

Zim Independent

Pindai Dube

A CABINET minister has rejected industry concerns over cheap
Chinese imports, saying government would do nothing to stop the imports
despite threats to local industries.

"Even if an individual or company goes to China to purchase
shoes which last for one day, we don't care because that's not government's
business," Chihota told delegates at a pre-budget consultative meeting in
Bulawayo last week.

He said locals were fuelling trade in cheap Chinese imports and
government did not care "even if these individuals and private companies
dump the cheap goods because it's not our fault".

"Individual business people and some private companies have
demonstrated their interest in importing cheap Chinese goods. The government
has not at any time supported or generated foreign currency for the
importation of cheap goods from China that have flooded the country," said
Chihota.

Chihota blamed private companies and businesspeople for the
flood of the cheap quality Chinese goods threatening local industries,
particularly the textile sector.

The cabinet minister's remarks surpised legislators and captains
of industry at a 2007 pre-budget seminar which reviewed government policy on
the importation of Chinese goods.

Zimbabwe National Chamber of Commerce vice-president Obert
Sibanda said government had an obligation to protect the local industry.


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Gono can't rein-in inflation without govt efforts - analysts

Zim Independent

Paul Nyakazeya

ECONOMIC analysts this week said central bank governor Gideon
Gono was unlikely to rein-in inflation in the absence of complementary
efforts by government.

They said Gono's economic recovery projects were unlikely to
succeed during the tenor of President Robert Mugabe's government which has
demonstrated an unyielding penchant for profligate spending.

The analysts pointed out that with a weak export sector, a
decline in production and foreign currency shortages and the absence of
support from the international community, no economic reform programme would
be effective.

Economic commentator, Eric Bloch, told businessdigest that it
was becoming evident that Gono, who has remained silent on inflation targets
set out when he became governor in December 2003, was losing the battle
against inflation.

Bloch said Gono, who had intended to bring inflation to single
digit figures by last year, had obviously overlooked key economic
fundamentals when he made the announcements.

Inflation reached an all-time high of 1 204,6 year-on-year for
August but eased to 1 023,3 in September.

Gono has however made no reference to his targets in monetary
policy reviews made this year, although he has indicated he continues to
fight inflation through monetary policy.

Independent economist John Robertson said the governor's
monetary policy had been weakened by poor export performance, an active
parallel market and isolation from the international community.

"You only set inflation targets when the export market is
performing and when the parallel market is not dictating prices of basic
commodities," said Robertson.

Last year Gono said the Reserve Bank would contain inflation to
between 50-80% by December this year.

"The recent monetary policy was more of a threat to the
financial sector after the bank realised that attempts to arrest the high
inflation had failed due to lack of political backing for his policies,"
Robertson said.

One analyst said Zimbabwe's economy needed measures that would
significantly boost industrial and agricultural output to win the war
against inflation, which he said was a factor of market shortages.

In his memorandum to financial institutions dubbed "Fine Tuning
of Monetary Policy", Gono said he was reviewing his mid-term monetary policy
"with inflation reduction as the overriding objective".

"With inflation reduction remaining the overriding objective of
the central bank, it has become necessary that the additional measures be
implemented, so as to stabilise the economy in the medium-term," Gono said.

A critic told businessdigest: "Even if he fine tunes his
monetary policies monthly, the formula to win the inflation battle is
boosting exports and production as well as generating more foreign
currency".

Zimbabwe's soaring inflation is seen as a major stumbling block
to pulling the country out of a six-year recession marked by persistent
shortages of foreign currency, fuel and food and a high unemployment rate.


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Zim could make world's top five platinum producers

Zim Independent

Shame Makoshori

ZIMBABWE'S platinum output could this year surpass last year's,
a move that could place the country among the world's top five platinum
group metals (PGMs) producers, businessdigest established this week.

Based on 2003 and 2004 production volumes, the World Mining Data
2006 report says the country is already the seventh largest platinum
producer after overtaking Japan, Australia and Yugoslavia.

Platinum production figures for 2005 amounted to 4 833 kg. The
United States was placed fifth on the World Mining Data report with output
at 4 040 kg in 2004, a figure that has already been surpassed by the 2005
production level.

South Africa and Zimbabwe are the only producers of PGMs in
Africa. South Africa is the world's leading platinum producer and the second
largest palladium producer after Russia.

The World Mining Data report, which summarised mineral output
trends across the globe from 2000, indicated that platinum output in
Zimbabwe increased two fold from 504 kg in 2000 to 1000 kg in 2004,
surpassing Japan, Australia and Yugoslavia.

In 2001 Zimbabwe produced 519 kg of platinum, followed by 2 306
kg in 2002, 1 300 kg in 2003 and 1000 kg in 2004.

Platinum output however peaked at 4 833 kg in 2005, according to
figures from the Chamber of Mines.

Zimbabwe was out of the top 10 before 2000, the report
indicated.

Zimbabwe has the second-largest platinum group metal deposit in
the world after South Africa.

The two countries hold about 90% of the world's known reserves
of platinum but the local mining industry is presently rattled by an array
of problems that have subdued mineral production.

For instance inflation hit 1 023,3% in September, the highest in
the world.

Potential investors have also been closely monitoring the threat
of mine seizures following government proposals to acquire 51% shareholding
in foreign-owned mines.

The planned acquisition of foreign-owned mines has negatively
impacted on investments in the mining sector, described by analysts as
capital-intensive.

Other top 10 world platinum producers are Canada, Colombia,
Russia and the United States.

Zimbabwe is also among the top 20 asbestos producing countries
in the world.

Output of the mineral however dropped from 151 954 metric tonnes
in 2000 to 130 000 metric tonnes in 2004.

The world's most expanding economy, China, is listed as the
largest asbestos producer.

China extracted 510 000 metric tonnes of asbestos in 2004, up
from 260 000 tonnes in 2000.


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Nit wants rangers' land for industrial development

Zim Independent

Shame Makoshori

THE National Investment Trust (Nit) will soon approach
government and the Parks and Wildlife Authority of Zimbabwe requesting the
game rangers to cede part of large swathes of land it controls in the resort
town of Kariba for industrial development, businessdigest established this
week.

Nit is a government investment vehicle that warehouses shares
for empowerment purposes.

Kariba's economic activities revolve around power generation,
wildlife ranching, tourism, crocodile farming and commercial fishing but Nit
believes the resort's economic potential is severely underutilised.

Nit said this week a diversified industry will create more
employment opportunities in that region and contribute immensely to foreign
currency generation for the economy.

Industrialisation programmes being pursued by Nit will see the
expansion and modernisation of old and shallow habours, improvement of
storage and handling facilities and docking space through the injection of
start-up capital into indigenous companies by Nit.

Nit has already started moves to secure permits to develop
habours in partnership with current operators.

"Lake Kariba is the largest man-made lake with immense
opportunities but most land is reserved for parks (and) wildlife purposes,"
Nit CEO Aaron Jeremiah told businessdigest.

"We will engage parks to release part of its land for industrial
development because we cannot have land for wildlife only in Kariba. We must
empower our companies to start manufacturing, but there is little space,"
Jeremiah said.

Last week, Nit presented its proposal to local authorities in
Kariba.

Part of the proposal included the expansion and modernisation of
habours to improve storage facilities, handling equipment and sprucing up of
Kariba's shores for tourists ahead of the 2010 World Cup in South Africa.

Businessdigest understands that Nit will be guided by a document
prepared by Keith Guzah during his brief stay as Kariba town council
commission chairman in 2003, which detailed the state of infrastructure at
habours and the potential economic benefits the development of the habours
will unleash.

Guzah was appointed Nit chairman last year.

There is a constant shipment of fuel, food, kapenta, tourism
industry goods, cars, building materials, groceries, spares and other
consignment between Kariba, Binga, Mlibizi and commercial fishing companies
along the lake, estimated at more that 1000 tonnes per month.

However, Nit said the habours are not large and deep enough to
handle cargo and fishing vessels.

Due to prolonged droughts, aid organisations have also been
spending large amounts of money transporting relief food by road to
impoverished communities in Matabeleland North and Nyaminyami when it would
be cheaper to use the lake.

Business at Kariba's habours is currently low due to subdued
business in the troubled tourism industry, depressed output of kapenta fish
due to ageing rigs, spares shortages, fuel supply bottlenecks and other
economic problems.

Shipment of goods from Zambia has also been affected, but the
Nit said it will not wait until the economy turns around to start its
programmes.


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Freight industry at 40% capacity

Zim Independent

Itai Mushekwe

THE country's freight industry is operating at about 40%
capacity as a result of continued dislocation of macro-economic
fundamentals, an industry representative has said this week.

Shipping and Forwarding Agents Association of Zimbabwe (SFAAZ)
chief executive officer, Joseph Musariri, told businessdigest that the
freight industry's viability was under threat from a declining economy in
recession over the past six years.

"We are operating at 40% capacity as an industry," said
Musariri. "Our business depends on
imports and exports, as you're aware since 2000 import and
export volumes started declining, hence freight business become enfeebled."

Musariri said the closure of national airline, Air Zimbabwe
cargo plane, Affretair and the National Railway of Zimbabwe's inefficiency
have resulted in the freight business battling for survival and aiming to
break even.

"Zimbabwe no longer has a national cargo airline following the
closure of Affretair resulting in the loss of air cargo business while the
inefficiency of NRZ's railway network, our biggest stakeholder, has
compounded the decline of business as the volumes of goods moving in and out
of the country are now limited."

Musariri said a number of variables such as government's land
reform programme, company closures and shortages of foreign currency to
procure raw materials by manufacturers had all combined to hurt the sector.

He however maintained that despite the hard times, a new
generation of indigenous players, most of whom acquired experience in
foreign-owned companies that had shut down due to the economic problems,
would emerged.


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UN disapproves of govt's firm takeovers

Zim Independent

Shame Makoshori

A UNITED Nations trade agency has added its voice to growing
disapproval of Zimbabwe's planned nationalisation of foreign-owned mining
companies, warning that the decision would deal a further blow to foreign
investment inflows into the country.

A United Nations Conference on Trade and Development (Unctad)
report released this week said Zimbabwe and the Central African Republic's
"identical indigenisation policy frameworks" would discourage critical
foreign direct investment (FDI) inflows into the two economies.

The agency's comments came after Zimbabwe announced plans to
force foreign-owned mining firms to dispose of 30% stakes to indigenous
companies under a planned empowerment policy for the mining sector.

Government later indicated that the mining firms would be
required to give up 51% shareholding to black-owned companies under the
empowerment policy to be legislated through amendments to the country's
mining laws.

Unctad said Zimbabwe's indigenisation requirements were part of
policy changes made by several African countries which made foreign
investments "less favourable".

The report also took particularly sharp aim at the Central
African Republic policy decision suspending the issuance of new gold and
diamond mining permits and the banning of foreigners from mining zones.

Unctad's statistics indicated that FDI inflows into Zimbabwe
between 1990 and 2000 amounted to US$88 million.

The figures sharply dropped to US$26 million in 2002, US$4
million in 2003, US$9 million in 2004, before picking up to US$103 million
in 2005.

This reflected the deteriorating macro-economic situation in the
country which critics said was a factor of poor policy implementation by
President Robert Mugabe's government, in power since 1980.

Unctad said African countries concluded a total of 583 Bilateral
Investment Treaties (BITs) in 2005.

Zimbabwe, Algeria, Egypt, Ethiopia, Ghana, Mauritius, Morocco,
Mozambique, Nigeria, South Africa and Tunisia concluded more that 20 BITs
each last year, Unctad said.

But the agency warned that a glut of BITs could duplicate other
agreements made by the African countries, creating problems in the
implementation of the investment treaties.

"However, caution is advisable against a proliferation of BITs,
free trade and regional trade agreements. African countries have already
subscribed to a large number of regional integration schemes that have
created an overlapping multiplicity of agreements," said Unctad.

Analysts said Zimbabwe's mining sector had relied heavily on
international mining companies for investment, but the planned policy
changes could affect investment in the sector.

Government insists it will proceed with its empowerment plans
for the mining sector.

A principal officer in the Ministry of Indigenisation said last
month government was adding a new dimension to the empowerment agenda: it
would legislate for the nationalisation of all foreign-owned companies
besides those in the mining sector.


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Gono choking from overdose of own prescriptions

Zim Independent

Dumisani Ndlela

WHEN Gideon Gono assumed office as the third Reserve Bank of
Zimbabwe governor in December 2003, he acknowledged the country was facing a
crisis "without precedent in (Zimbabwe's) short history".

Nothing appears to have improved since then.

The crisis, as has become common idiom in government and
business circles, was described by Gono as a "challenge", a term meant to
apply gloss over government's failure to administer one of sub-Saharan
Africa's once most prosperous economies.

But the real challenge Gono faces is not one of an
"unprecedented economic crisis", but an overabundance of his own economic
prescriptions to deal with the economic catastrophe.

Time is running out.

Gono completes three years of his five-year term in December,
and will have only two years remaining before his term of office expires in
2008.

In his maiden monetary policy statement, financial pundits
viewed him as making the distinction of having well-defined fiscal policy
positions. Gono said his 12-month vision was "to see the implementation of
policies that seriously arrest and reverse our inflation from the expected
initial peak of 700% in early 2004 to below the 170-200% levels".

Those that had hoped to judge him using figures should have been
impressed.

Although the 170-200% levels were not achieved within the year,
the country experienced a 500% decline in inflation from an all-time high of
623% in January 2004 to 124% in March 2005.

Even the most unsentimental cynics believed Zimbabwe was out of
the inflation abyss.

But for a man perceived to dread failure, Gono should be as
worried as his critics who are beginning to feel vindicated for disbelieving
that he could heal the country's economy.

He has made the catchphrase "failure is not an option" almost a
war cry at the central bank's impressive home along Samora Machel Avenue.

Since 2005, inflation has soared unabated, touching an all-time
high of 1 204,6% year-on-year for August 2006.

The vision appears lost, and the monetary policy is gradually
sliding off the rails.

According to the vision, Gono's two-year plan was to consolidate
gains from the previous year that he indicated would "express themselves
through reduced inflation levels, from three digits to a two-digit figure".

The first two years were to be an integral anchor to later
economic revival measures, but, the vision faded during the first two years.

"It is the bank's five-year long-run monetary policy vision to
attain a 'healthy economy' in which inflation and currency stability become
entrenched in all our national planning efforts and actions," Gono declared.

Today, inflation remains the highest in the world despite
intermittent decreases now and then.

The International Monetary Fund (IMF) has forecast inflation to
average 1 216% this year, and 4 278,8% next year, suggesting that it could
breach the 5 000% mark next year.

During the current year, the IMF predicts that real GDP will
contract by 5,1%, and by a further 4,7% next year.

The local currency has been kept artificially stable on the
official market, where exchange rate policies have been arbitrarily changed
almost with every monetary policy review.

On the thriving parallel market, the currency is becoming
increasingly defenceless, and critics argue that the parallel market, which
Gono has tried in vain to destroy, reflects the true value of the domestic
currency against international currencies in present hyperinflationary
conditions.

For example, the Zimbabwe dollar, which opened the year at $100
to the US dollar, is currently trading at $1 400 against the greenback on
the parallel market.

Dealers said buyers of huge volumes were spending as high as $1
600 on the greenback on a secondary parallel market involving institutions.

The five-year vision is seriously under threat, with currency
and inflation stabilisation looking so far like failed skirmishes.

Analysts said the unorthodox approach to monetary policy since
Gono's tenure as governor was proving costly to the economy, and creating
conflict between him and fiscal policy agents.

They said policies were being crafted, abandoned, redesigned,
and discarded with haste to the extent that the economy had become an
"experimental guinea pig" to the central bank governor.

A growing legion of critics is beginning to view Gono's monetary
policy measures, which won backing during his first year in office, with
increasing scepticism.

A bank treasurer, writing in this newspaper last week under a
pseudonym, described Gono's policy review measures as "destructive".

"While the governor has declared war against speculators in both
the foreign exchange and stock markets, the man is guilty of sparking off
speculation of the greatest magnitude," the bank treasurer said.

For bankers, Gono has become the most feared governor ever to
preside over the monetary policies. While his predecessors have been hogtied
from devaluing, he has been given the leeway to do so without restraint.

Soon after becoming governor, he closed down at least 15
financial institutions, blaming them for being major culprits in speculative
activities that had driven the parallel foreign currency market and fuelled
inflation.

A raft of policies have been crafted, amended, and redesigned
during Gono's tenure at the central bank, all designed to deal with the
financial sector.

The big five banks this year complained that they could twist in
the wind as a result of monetary policy measures, particularly a high
interest rate regime that had conspired with high statutory reserve ratios
to wipe away accumulated capital.

Gono gave in to bankers' request for a softening of that policy,
but last week he pounced once again on the unsuspecting banks, imposing
financial sector stabilisation bonds to be taken by financial institutions
according to the sizes of their balance sheets.

The bonds are likely to take away huge sums of money from the
banks, forcing them to borrow from the central bank, whose accommodation
rates Gono also raised just over two months since bringing them down in
July.

This will have the effect of creating huge costs for the
financial institutions, threatening their survival.

Individuals, too, are becoming worried by a number of monetary
policy measures, particularly those that have robbed them of convenience in
the conduct of economic activities.

Examples are the prescribed withdrawal limits of $100 000 for
individuals, as well as a recent requirement that all transactions on the
Zimbabwe Stock Exchange above $50 000 should be done through the Zimbabwe
Electronic Transfer and Settlement System.

Gono said monetary authorities would soon insist that every
transaction above $50 000 should have a taxpayer's number.

It was unclear how individuals intending to invest on the stock
market would get the tax numbers, but critics argue that Gono wants to
exclude as many people as possible from investing on the local bourse.

The ZSE has so far been the only investment vehicle offering
positive returns in the economy.

Gono said the stock market had "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".

While the governor may deplore speculative behaviour, the most
telling indictment to date of Gono's record is that despite his immense
power and ambition, inflation is nearly double what it was when he came into
office. And no serious effort has been made to curtail state expenditure
which remains the root cause.


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Zim's future squarely in Zanu PF's hands

Zim Independent

By Innocent Chofamba-Sithole

THE most likely probability from the prevailing configuration of
political forces in Zimbabwe today is that Zanu PF looks set to remain in
power after the departure of President Robert Mugabe.

This looming scenario owes itself as much to the Machiavellian
scheming behind the ruling party's self-preservation strategy as to the
unravelling of the main opposition, the Movement for Democratic Change
(MDC).

For anyone who cares to understand the trajectory of power in
Zimbabwe today, it is important to begin with an appreciation of two obvious
but fundamental and mutually reinforcing realities underpinning the
political contest over the state.

The first one concerns the decisive constitutional authority
that is now vested in the parliamentary Zanu PF party in the wake of the
2005 general election.

The second is that the MDC, as we had come to know it over the
last six years, has ceased to exist. Its place has now been taken by two
rival factions commanding significantly less support than their erstwhile
progenitor.

To put it plainly, Zanu PF's constitutionally contrived
two-thirds majority means that it does not require the consent of the
opposition in parliament to keep Mugabe's successor in State House for years
on end before he/she is subjected to a national election.

Already, Zanu PF is reportedly mulling such a strategy under the
guise of holding joint parliamentary and presidential elections in 2010.

The opposition could respond to such manoeuvres either by
co-operating with the ruling party with a view to influencing the
transitional process and securing a role for itself in an envisaged
transitional government, or mobilise political resistance against them
altogether.

However, the first scenario appears more realistic than the
second.

As political analyst Eldred Masunungure has eloquently argued,
for any mass resistance programme to succeed, the opposition needs to
grapple with the "basic asymmetry in the risk orientations of the ruling
elite and the ruled masses".

According to this argument, the opposition is faced with the
challenge of transforming Zimbabwe's subjective political culture into one
that is capable of actively supporting civil disobedience against a
risk-taking Zanu PF regime. It follows, therefore, that success in this
endeavour necessarily hinges on the opposition leadership's own capacity to
eschew risk-aversion in order to inspire a culture of popular activism. And
yet it must be mentioned that our recent history is replete with missed
opportunities; the opposition leadership has tended to remain inert even in
circumstances where "the ruled masses" were reasonably predisposed to
support one form of civil disobedience or another.

For example, the erstwhile MDC leadership chose to pursue
dialogue in the aftermath of Mugabe's disputed victory in the 2002
presidential election, only for them to rediscover their resolve to confront
the regime head-on more than a year later. But the decisive moment had
already been lost, hence the failure of the grandly ambitious but
conceptually awkward "Final Push" of June 2003.

Since then, the Zanu PF regime has summarily dissolved the MDC's
elected municipal governments across the country and embarked on the
infamous Operation Murambatsvina without eliciting as much as a whimper of
protest from the opposition. Critics have seized upon this apparent
political lethargy to charge that the MDC was never a truly organic,
socially-based political movement. Whether this charge is fair - and not
altogether inaccurate - it is not the focus of this discussion. However, it
is necessary to point out that the unravelling of the "spaghetti mix" at the
apex of the MDC has left the opposition movement grossly disarticulated and
strategically hamstrung.

In direct response to this dismal state of opposition politics,
and against the background of deepening economic woes, the electorate has
become disillusioned and apathetic. The ill-conceived and clearly
unsustainable threats of "a winter of mass action" by Morgan Tsvangirai and
his faction have exacerbated this sense of political resignation as they
have served only to emphasise the opposition's weakness.

It is quite clear that the opposition currently lacks the
capacity to mobilise decisive resistance against any constitutional deferral
of the presidential election for the simple reason that the opposition
itself has ceased to be attractive. How strong, then, is the likelihood of
the opposition co-operating with Zanu PF over transitional arrangements to a
post-Mugabe era?

Going by the historical record, one would have to concede that
the opposition is highly amenable to some form of negotiated settlement with
the ruling party. The elusive objective of the MDC's diplomatic campaign
over the last few years has been to bring Zanu PF to the negotiation table
in order to thrash out arrangements for a transitional framework.

The single-mindedness with which the erstwhile MDC pursued the
diplomatic route almost became an open admission of its declining people
power. Hence the party's frustration with Thabo Mbeki's choice of foreign
policy towards Zimbabwe.

With the opposition as weakened as it is and Zanu PF winning
more than 140 seats unopposed in crucial local elections in recent weeks, it
is apparent that the ruling party feels no political pressure to engage in
inter-party dialogue. However, it may consider talking to the opposition and
civil society over transitional arrangements in order to create a semblance
of national consensus as part of a strategy to thaw the West's diplomatic
siege on the country. The availability of choice, in terms of which
opposition faction to engage, also presents Zanu PF with potentially
strategic political capital. The country's immediate post-Mugabe future,
therefore, appears to be firmly tied to the outcome of Zanu PF's internecine
succession conundrum. The prospect of the ruling party itself splitting
along factional lines has been raised quite frequently, especially now as
the race to succeed the octogenarian strongman draws closer to the
finish-line.

This "split thesis" assumes that decades of "democratic
centralism" within Zanu PF have virtually transformed Mugabe into an
institution-within-an-institution and that his departure, in the absence of
both elite and rank and file consensus over his successor, would inevitably
have cataclysmic consequences for his party. However, I am inclined to
discount the "split thesis" on several grounds.

Zanu PF's factions recognise how important the party's continued
control over the state is to its regime reproduction agenda. Therefore, the
leadership ambitions of the ruling party's competing factions have to be
understood within the context of intra-state power contestations that are at
once informed by the overriding imperative to preserve the party at the helm
of the state.

In other words, the succession race is a political battle to be
lost and won entirely inside Easton's proverbial black box. It is highly
unlikely that any of the Zanu PF factions is prepared to march into
opposition and take on the might of the would-be state-sponsored ruling
party. Unless there is a viable partner in the pre-existing opposition to
ally with on the eve of elections, as happened in Kenya in 2002, it is
difficult to imagine that either faction is ready for the often protracted,
arduous and thankless industry of opposition politics.

Secondly and inseparably linked to the first point, both
factions are no doubt reassured in their presidential hopes by Zanu PF's
contrived constitutional authority to either re-mould the institutions of
state or to re-write the rules of political engagement to their liking. It
would be absurd for them to risk losing this political advantage by
splitting up.

* Innocent Chofamba-Sithole is a Zimbabwean journalist writing
from the UK. chofamba@yahoo.co.uk


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Only certainty now is change

Zim Independent

By Rwendo

POLITICAL oppression and foolishness brought the Rhodesian Front
down. Instead of managing change through a controlled hand-over of power,
Ian Smith precipitated a civil war.

Thankfully, he was forced to the negotiating table before many
more young Zimbabweans were killed.

Similarly, a failed philosophy that led to economic
mismanagement and corruption is bringing Zanu PF down.

Instead of allowing for a transition to new ideas and leadership
within the ruling party (contrast China), Zanu PF opted for business as
usual in the 90s - demagoguery under the same old leadership and persecution
of voices within its ranks calling for change.

When real opposition inevitably arose at the beginning of the
millennium, Zanu PF opted to ignore history and fought change by any means
necessary.

To break the link between white commercial farmers and the
opposition, they were prepared to virtually destroy commercial agriculture
using the late Chenjerai Hunzvi, the Green Bombers and war veterans.

On the media they successfully used Jonathan Moyo with
near-similar devastation for the independent media.

To control industry, banking and financial fields, they have
turned to Gideon Gono using the central bank.

For the urban population and civil servants, the ZRP, army and
CIO are used against their paymasters - the people.

In all this, both Smith and President Mugabe initially achieved
their objectives and managed to hold onto power for some years. But they did
not address the underlying problems.

Smith belatedly tried to use Abel Muzorewa and the late
Ndabaningi Sithole to deliver "majority rule".

And Mugabe and Zanu PF are trying it with their own "false
economic prophet". Yet, where is Smith and the RF today?

In these dark times when all seems bleak, it is worth reminding
each other - be it again and again - that the only certainty in this life is
change, and that it will not take a thousand years this time either.

* Rwendo is a pen name for an author writing from Borrowdale.


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Another case of plunder

Zim Independent

Comment

GOVERNMENT has made its intentions clear on the need to
expropriate mines and industry in the spirit of indigenisation. There are
plans to introduce mining and indigenisation Bills to parliament in moves
the government believes will empower blacks.

The government has laboured feverishly to portray black
Zimbabweans as victims of sustained oppression more than a quarter of a
century after Independence, hence the need for empowerment.

But there appears to be an undisguised determination by our
government to get it wrong all the time, in the name of black empowerment.
There is a thread of disorderliness and destructiveness in all the
initiatives embarked upon to date that have seen government scoring own
goals without any shame. The execution of the land reform remains an
unforgettable show of this talent for blundering.

Elsewhere in this paper, we carry stories of the shocking
situation currently obtaining at diamond deposits in Marange district where
politicians have driven out mine owners and invited villagers to exploit the
resource using whatever means possible. The anarchy that the politicians
have created to date is the seed of future dislocation of law and order in
the sector and in the area. Even when order is finally restored, if at all
it is, the residue of the disturbances is likely to haunt the area and the
sector for a long time to come.

There is evidence of this virus in the land reform programme
when war veterans and Zanu PF hoodlums were press-ganged and then unleashed
on the land to drive out white farmers. Such was the power of the anarchists
that the police were too emasculated to deal with murderers, looters and
cattle rustlers. It was a virtue to illegally drive off in a white farmer's
tractor, dig up irrigation pipes or dismantle a transformer. The looters are
still recognised by the Zanu PF government as heroes of the Third
Chimurenga. Their criminal activities appeared to have executive blessing as
known criminals from that time still walk free.

Today, attempts to restore order in the farming areas have
remained difficult as the looting has continued even though there is a
change of guard on the land. Farmers, both black and white, who refuse to
toe the line can today still lose their farms at the drop of a hat or be
subjected to endless disruptions by invaders.

The orgy of violence has become the phenomenon associated with
land reform and not productivity or empowerment which are yet to be
realised. Another case in point is that of Zanu PF militia groups led by
Joseph Chinotimba who four years ago invaded and closed companies on the
pretext that employers were giving workers a raw deal.

The invaders in some instances announced that the workers had
taken over the companies and would get government support to run them. This
initiative, thank goodness, failed but the axe still hangs precariously over
the companies through constant threats by the state.

The Marange chaos could thus be a dress rehearsal of impending
disorder in the mining sector where apprehension has been heightened as a
result of the as-yet-unpublished mining Bill. When senior politicians in
Manicaland lead from the front to order invasions of mines, there is every
reason to fear the replication of this anarchy in other districts.

Zimbabwe has vast mineral reserves but has largely remained poor
because of its destructive policies.

President Mugabe earlier in the year marvelled at platinum miner
Zimplats' contribution to the development of the Selous area, which is a
model of social investment. The Marange case has nothing to do with
development or the much-publicised NEDPP quest to raise foreign currency.
This is state-sanctioned plunder of national resources and we are waiting to
hear Mines minister Amos Midzi's justification for the illegality taking
place in Marange.

When investors see the extent of the anarchy and the fate of a
legitimate prospector, they will stay away in droves. It is time that our
government learnt to create wealth without plundering national resources and
suspending the rule of law.


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Coy clerics' sedatives abetting poverty

Zim Independent

Candid Comment

By Joram Nyathi

Sunday morning listening to Fiba Zimbabwe on SFM. The preacher
made an impassioned speech about the "African problem". He said Africa had
enough resources to become the reserve bank of the world. But this was not
possible for three major reasons.

Africans, said the preacher, were plagued by too much
"consumption without production, greed without sharing and dependency
without responsibility". I was inclined to agree with his observations on
consumption and greed. These are the twin evils that have been most
responsible for the islands of obscene opulence amid seas of poverty.

There are all the signs of conspicuous consumption. A visitor
from Europe walking along Harare's streets would be forgiven for thinking
that we have one of the biggest production plants for Toyota and Mazda
vehicles despite shortages of foreign currency to import critical inputs
such as fuel, medicines, farm machinery and fertiliser.

While business leaders drive around in the slickest 4x4s, one is
struck by the brutality of municipal police as they chase around street
vendors trying to eke out a scavenger's existence selling cigarettes,
oranges, maputi and cellphone recharge cards. Overweight Hummers and the
latest SUV share the same potholed streets with pushcarts laden with bananas
for sale.

One cannot miss the sharp contrast between the opulence of
Rainbow Towers overlooking the dirty commuter terminus near the magistrates'
court.

However, the charge of dependency and responsibility needs some
qualification. I disagree very strongly with anyone who says African
citizens should not hold their governments responsible for the continent's
backwardness.

Most such preachers are coy about telling these earthly leaders
that they are fallible, that they should be accountable to the electorate
and that they have a duty to observe and respect the laws their governments
impose on citizens.

More than that, it is often difficult for citizens to be
responsible under a political dispensation where there is simply too much
government. In the case of Zimbabwe the government controls virtually
everything one can think of.

It controls the price of bread, commuter fares, fuel, council
tariffs and school fees. There is hardly a facet of one's daily life where
one does not experience government's intrusiveness. Remember after taxing
your money, they still want to determine how much you can use per day and
how. When you thought they were done, they are working on a law that allows
them to tap into your conversation any time of the day.

The preacher reminded me of the duplicitous evangelists from
Nigeria and America who seek to explain all our problems on the basis of our
sins or lack of faith. In that way they avoid dabbling in politics but
ambush the poor who turn to them for salvation.

They will give churches their own names, spend millions of
dollars advertising their services and splash their faces in the news papers
and television screens while their flock starve.

They scream in front of television cameras and promise to cure
diseases before rented crowds all in the name of Jesus but will not visit
the home for Aids sufferers at Mashambanzou in Waterfalls, Jairos Jiri
Centre for the disabled in Southerton, nor St Giles rehabilitation centre in
Milton Park to heal the disabled and infirm. There we have real people in
pain and in need of help. Clear these centres of their sick and we shall
surely erect churches there in your name. It's not about posturing for the
camera.

But then Jesus was not attention-seeking, a miracle crusader nor
a showman. While he exhorted us to give to Caesar his due, he would not
condone the cruel treatment of the poor and the fatherless.

His heart bled for the poor, not to anoint despots or absolve
them of their earthly responsibilities. This brand of preachers is not
helpful in making our leaders take their tasks seriously - not as the
anointed of God, but as servants of his people.

It is not possible for people to exercise full responsibility
over their destiny when all national resources are controlled by a
parasitical state with its octopus hands in everything. Africans are poor
not because the continent has no resources but because the government wants
to be in charge of everything and dole out largesse at its pleasure.
Poverty, ignorance and patronage are a source of immense power.

Can anyone imagine Tony Blair or George Bush, or any European
government for that matter, trying to win an election by promising the
electorate a return to the land and telling them they will be better off
away from amenities to be found in towns. Even that great friend of the
poor, Karl Marx, with all his zeal and zest for a socialist revolution
maturing into classless communism, had no sentimental illusions about rural
conservatism and backwardness. These have been parlayed by unscrupulous
politicians to keep the rest of society in thrall.

His views on religion were captured in the famous remark about
it being the "opium of the masses" and unfortunately we have preachers today
ready to administer the portent sedative on behalf of oppressive regimes
while they promise the poor everlasting joy after death. Such preachers have
lost their saltiness.


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Editor's Memo

Zim Independent

UNDER the section on "emotional, verbal and psychological abuse"
in the Domestic Violence Bill, some of the offences, though not criminal,
are listed as "obsessive possessiveness" and "unreasonable denial of
conjugal rights".

This is what I call getting into the real heart of the matter. I
was reminded of a little story I read last week. It said men or women with
beautiful spouses were most liable to suffer stress in their lives. This, it
was revealed in the survey, was because both, if they were committed to each
other, were likely to be plagued by jealousy and possessiveness.

The Bill on domestic violence seeks to make jealousy and
possessiveness about your wife or husband an offence. It is difficult to
fathom what lay in the mind of the person contemplating such a piece of law.
Are we not stretching civilisation too far?

While you commit an offence of being "too possessive" of your
spouse, you are still expected to fulfill his or her "conjugal rights". How
does one reconcile these two? Isn't the law seeking to be too intrusive on
issues that ordinarily should be resolved by two consenting adults or in the
family setting with friends and relatives?

Why is it assumed that classifying a conflict in the family as
an offence will make it any less emotional and elicit exactly the same
reactions associated with love, anger, provocation? Is it the intention of
the minister to legislate for or against love? Perhaps he saw the film on
circuit not so long ago starring Ewan McGregor: Down With Love!

Then there were other interesting anomalies. The Bill requires
that an interim protection order issued by the court should have a warrant
of arrest attached to it regardless whether the respondent is aware of the
action of the complainant or not. Why should the respondent be denied the
legal right to presumed innocence or at least to be allowed the chance to
give his/her side of the story without being treated as a common law
criminal? The Bill ignores a natural human trait that a claim can be
motivated by malice or a complainant overreacting in the heat of the moment.
Experience shows that very few acts of "domestic violence" are premeditated.

In an act of exuberant vindictiveness, the Bill proposes that a
respondent who violates a protection order should be fined or jailed for a
"period not exceeding five years". What is the intention of such a shocking
sentence in a domestic issue? This is not to downplay the "offence"
committed but the Bill ignores the personal relationship between husband and
wife. Unless the two were already in the process of a divorce, spouses never
keep grudges against each other for that long. This to me sounds more
punitive than corrective.

The person so unfortunate to be convicted of domestic violence
is liable to a fine "not exceeding level fourteen or to imprisonment not
exceeding 10 years". Is this for murder or rape?

The prison term contemplated here presumes that once a
complainant reports to the police he or she puts the matter beyond his/her
further power, has abandoned all traditional remedies pertaining to the
domestic set-up and leaves no room for reconciliation. This is patently
erroneous. A complainant can reconsider his/her decision for any number of
reasons:

* Influence of friends or family;

* Personal affection;

* Breadwinner status of respondent;

* Possible loss of job and support; and finally,

* Risk of breaking up marriage.

The Bill risks working against its intention by discouraging
those who want to make a complaint because they need help, not because they
want to end their marriages or unduly punish their spouses. Unless there is
something I am missing about domestic relationships.

Finally, as I went through the Bill I was on the lookout for the
clause that so offended Tafara-Mabvuku MP Timothy Mubawu that he had to
interpose himself between God and parliament but I found none. He allegedly
complained bitterly that men had been stripped of their dignity and that the
Bill was offensive in the eyes of God and therefore should be thrown out. He
probably hadn't read the whole Bill and overreacted.

Was the demonstration that followed against Mubawu's perceived
blasphemy or the alleged inequality between men and women? To me both
reasons are silly - the first because God exacts His own revenge and the
other because nowhere does the Bill seek to legislate for inequality on the
basis of sex. So what was the point?

But if he said what he is alleged to have said, I would still
respect him for his honesty. It is hard in these days of political
correctness to find men or women who have the courage to speak their mind.

The crowd of women and male hangers-on who supported them
against Mubawu would do well to learn a thing or two from Voltaire's plea to
God to protect him from his friends because it was easier for him to deal
with his enemies (honest men).

Studies in all cultures and across social classes have
demonstrated that violence against women and the girl child, including rape
and murder, is mostly committed by relatives or men they know and trust (God
help us). They tend to keep a safe distance from strangers.

I hope those demonstrating were not playing political games.
Leave our legislators to give this important Bill the attention it deserves.


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Somebody benefiting from chaos on farms

Zim Independent

Muckraker

THERE is nothing quite as dispiriting as watching a group of
journalists sitting silently while a minister insults them. In any other
country the minister would have been told his fortune in quick-time and
given the order of the boot. But then again, in any other country the
minister would not have abused his hospitality quite so brazenly.

Acting Information minister Paul Mangwana (who tells us he
prefers "Munyaradzi") addressed the members of the Quill Club last Friday.

"We have a situation where media houses and journalists abuse
their journalistic privileges and write falsehoods and sensationalise issues
to satisfy their foreign paymasters," he declared in the now customary
facile language of Zanu PF. "By so-doing we are working for the destruction
of our national economy because we will be chasing away investors."

Nobody told him to stop talking such arrant nonsense. Nobody
asked him whether he was aware the courts had struck down the offence of
"abusing journalistic privilege" because it couldn't be taken seriously, and
that the state had lost all the prosecutions it had brought against
journalists under the law he so mechanically defends.

Who are the "foreign masters" he cites? If he knows who they are
why doesn't he have the courage of his dubious convictions and name them?
And who has scared off investment: a handful of journalists who evidently
don't pose much of a threat at the Quill Club, or state agents who steal
land and engage in public violence against government's critics?

"Journalists should not be misled by rich media houses that are
financed from abroad." he ventured. Somebody should have said that the
country should not be misled by rich ministers who have brought it to its
knees with their failed policies. What sort of patriotism is that?

Nobody asked the obvious question: Is it appropriate for a
minister responsible for oversight of what have been widely identified as
corrupt parastatals to be the same person responsible for investigating
corruption at these parastatals?

Mangwana asked why some independent newspapers had editorial
policies in which "they only reported on the negatives without a single
positive story".

Here's the deal minister: You find us a positive story about
Zanu PF and we will publish it. But we appreciate you may need a little time
to get back to us on this one.

A private war seems to be going on in the pages of the state
media every Saturday.

The columnist calling himself Nathaniel Manheru objects to those
calling "in the name of NEDPP" for the eviction of A1 farmers who are
accused of pursuing backward agricultural practices. Their pieces of land
are well placed for "quick hits" by means of which their detractors believe
they can turn the economy around within months, it is said.

This is the same "breed" making impassioned pleas for government
to stop land invasions, "themselves a catch-all defence for stubborn
whites", Manheru claims.

So who has been making "impassioned pleas for an end to land
invasions" and hopes to turn the economy around in a matter of months? Is it
not Gideon Gono?

If so, despite his access to the highest office in the land, he
appears to face a roadblock in the form of Manheru. Which explains why
Didymus Mutasa and others feel free to ignore calls for a halt to land
invasions. They intend to go on seizing land and so long as this gang of
recidivists has the bit between its teeth the country has no prospect of
investment or recovery.

Meetings of the NEDPP executive, we are told, are becoming
increasingly acrimonious as those that had hoped to see some dividends for
their hard work, particularly in the form of cooperation with the private
sector, see nothing now except failure staring them in the face.

"NEDPP is finished as a project and its owners are fighting like
rats in a barrel," one disillusioned participant told us last week.

We know that is true because we see it advertised every Saturday
morning in the Herald. The president has warned, "with the depth of a seer",
we are admiringly told, "the next conflict will be between A1 and A2
farmers".

So the next jihad is already being planned as the black
latifundia faces its would-be expropriators. Is there to be no peace, no
settled policy, no respite from the constant turmoil as fake revolutionary
opportunists book their seats aboard the presidential baggage train?

Manheru sees nothing wrong with continued farm invasions, stock
theft, veld fires and the environmental havoc caused by the rampant cutting
of trees by sluggards who have no idea of farming.

To him those who call for an end to this destruction are agents
of imperialism who are against "land reform". Even President Mugabe who said
people should not keep land for speculative purposes or as "weekend braai
resorts" is a petit bourgeois. Especially Gono who has on several occasions
called for an end to farm invasions to "increase productivity".

Manheru can be sure he has Mutasa on his side. He has been
issuing fresh offer letters left, right and centre to anyone, so long as he
is a potential supporter.

In Manheru's scheme of things, the purpose of land reform was
not about productivity but an issue of cultural identity.

We wonder what secret deals he is making from the anarchy on the
farms. Don't you think we need a probe there Dr Mahoso?

Zimbabwe had another visit recently from one of those
Pan-Africanist solidarity merchants who are paid to see nothing, hear
nothing and say nothing of the truth during their tour.

"The purpose of our visit," said Canadian-based Global Afrikan
Congress chair Cikia Thomas, "is to express solidarity with the people and
government of Zimbabwe for the work that the people and the government are
doing towards self-determination in Zimbabwe."

This comes at a time when Zimbabwe is completely dependent upon
the goodwill of other countries for its food and fuel supplies. It used to
be self-sufficient, but now, thanks to the policies Thomas endorses, it is a
beggar state.

What we want to know is who funded Thomas's visit here? We are
sure in the interests of honesty he will disclose that for us. We would hate
to think he is not his own man. And what objection does he have to living in
his homeland of Jamaica?

Thomas said he expected to see people begging in Harare.

"That is the impression we got from the Western media but we
didn't see that."

His photo shows him wearing a pair of glasses. Behind the lens
his eyes are staring vacantly upwards which perhaps explains why he didn't
see any beggars on the streets of Harare. His hosts evidently clapped their
hands as their vehicle approached the junction of Sam Nujoma and Chitepo and
the beggars disappeared while Thomas's eyes shifted approvingly towards the
heavens.

Somebody else whose shifty eyes stare out from the pages of the
state press is Tafataona Mahoso. He fatuously accuses ZUJ leader Matthew
Takaona of becoming part of the "feeder lines into the global conveyer belt
of lies against Zimbabwe which are also used to justify sanctions against
this country".

And what had Takaona done to deserve Mahoso's vitriol?

He gave an interview to VoA.

Others giving interviews to VoA recently include Nathan
Shamuyarira and Didymus Mutasa. They have all joined "the global conveyor
belt of lies" as well have they?

It is only a matter of time now before Mahoso is taken away by
men in white coats. And if he wants to know why Zimbabwe is the target of
sanctions he need look no further than the widely circulated footage of ZCTU
leaders being viciously assaulted in the back of a police vehicle.

There is more. Is there anybody out there who can help Mahoso?
He is so terrified by the prospect of losing his job as MIC chair that he is
having sleepless nights over the idea of a voluntary media council. And the
Sunday Mail is giving him acres of space to pour out his copious grief.

The fellow is so distraught he can't reason clearly. This week
he said he was not opposed to self-regulation in the media which he
immediately called a "myth".The reason for this contradiction, it appears,
was that an attempt at media self-regulation had failed in Zambia. This is
cause for celebration for Mahoso.

If Zambia fails, why should people of a lesser calibre like
Zimbabweans hope to do better? To drive the point home, even in Malawi the
experiment had failed, Mahoso told us. So there was no point in wasting
donor money trying to do what is to him beyond the ken of an African
mind.

And there was Police Commissioner Augustine Chihuri last week
telling two police women who were headed for peace-keeping duties in the
Sudan to bear in mind that they were Zimbabweans and should remain "loyal
and patriotic".

"Zimbabwe is your country and home and you cannot afford to
dishonour and disown it no matter how much silver and gold comes your way,"
he told them.

So how much silver and gold came the way of those thugs filmed
beating people on the streets of Harare and subsequently in police cells? Or
was that for free?

The UNDP in Harare should be asked how their superiors in New
York justify their continued sponsorship of Zimbabwe's role in peace-keeping
duties when such violence is unleashed against innocent citizens back home.

The impact of such news clips upon public consciousness in
tourism source markets has yet to be quantified. But you can be sure that
the government's publicity agency, the ZTA, staffed by friends of the ruling
party, will
find their work cut out for them explaining this shocking
advertisement for Zimbabwe. And we wonder which government apologist will
next be writing about how the independent press is responsible for
"tarnishing Zimbabwe's image" abroad.

Here's a proposal the ZTA may want to consider: What about an ad
campaign telling tourists they no longer have to leave the capital to watch
wild beasts descending upon their prey. They can now see such magnificent
sights from their hotel rooms. Of course the ZCTU, NCA and MDC would have to
contribute to these "canned" hunts by making their members available.

There was an interesting story this week of the Harare council
invoking a law that will make motorists pay for damage caused to council
property in the event of an accident. This should of course save ratepayers
a few pennies.

But we should be happy to have a test case where a motorist
takes council to court over a burst tyre or damaged rim because of potholes
in the city roads. That would be a fair deal.

There is this curious Anti-Corruption Commission-sponsored
advert on TV seeking to promote awareness against corruption. It has got all
the familiar small fry that are exhibited for ephemeral amusement while
corruption on a grand scale in high places goes almost unnoticed. Until of
course a parliamentary portfolio committee noticed it big time at
Ziscosteel.

We were therefore very disappointed to hear that a report
detailing this corruption has been killed and buried in an unmarked grave.
Which means there may never be a postmortem to show who committed what
offence. Mangwana and Obert Mpofu have demonstrated the limits of this
much-touted clean-up.


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Disservice from parastatals

Zim Independent

By Eric Bloch

WHEN Gideon Gono, governor of the Reserve Bank of Zimbabwe, delivered his
statement of Fine-Tuning of Monetary Policy on October 9, he dropped an
array of bombs upon the financial sector, the Zimbabwe Stock Exchange, Money
Transfer Agencies (MTAs), exporters, other economic entities, and the
populace in general. Some of the bombs were very necessary and deserved,
whilst others have potentially disastrous consequences of the same magnitude
as would be caused by a North Korean nuclear bomb, the most pronounced being
the repercussions upon an already critically injured export segment, verging
upon permanent collapse.

One of the very necessary bombs, however, descended upon many of Zimbabwe's
parastatals. Gono clearly, and justifiably, voiced his displeasure at the
extent to which some of the parastatals have very evidently done nothing to
right their ills, mainly self-afflicted, and place their operations upon an
even keel. Instead, these parastatals demonstrably perceived RBZ as a "milk
cow", and the governor made it clear that that cow was no longer prepared to
be milked. He said that in the light of RBZ's "varied experiences over the
last 18 months, some parastatals 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 (RBZ)".

He said that in view of this syndrome of total cash-flow reliance upon RBZ
of such parastatals, "it has become necessary to institute stringent
measures that restrict and forbid non-performing parastatals and local
authorities from accessing central bank support". He advised them that
hereinafter "their first port of call for financial assistance shall be
their parent ministry", and stated that those that immediately come to mind
are Air Zimbabwe, Zinwa, Zesa, GMB, Arda and Zisco, (although he commended
some others, including National Railways of Zimbabwe and Zimbabwe United
Passenger Company), for "beginning to perform and self-sustain". He also
urged banking institutions "to play a complementary role in instilling sound
financial management systems and corporate governance standards in the
parastatals sector as a condition for lending".

The affected parastatals must have been shaken rigid, for RBZ largesse had
been very considerable, motivated by a desire to bring economic efficacy to
parastatal operations, required for the economy to function properly, but
much of that largesse having been abused and, instead of those parastatals
better-serving the economy, their service delivery had become progressively
less and less, and that which has been forthcoming not meeting the national
needs. With the RBZ being a benevolent banker, those parastatals felt that
they were "on a pig's back".

Irrefutably, some dynamic action is not only necessary, but is also long
overdue, and that action must include that the RBZ cease to be the banker of
permanent resort, and that the parastatals very belatedly engage in
effective cash-flow management, and take those actions necessary to achieve
viability, self-sufficiency, and absolute fulfilment of the purposes for
which they are supposed to exist. However, it is unacceptable that they
should now transfer their funding dependency upon their parent ministries,
other than possibly transitorily whilst implementing positive and
constructive measures to achieve self-sufficiency. On the one hand, if the
ministries become the substitutory source of funding on an ongoing basis,
the underlying malaise of the parastatals will not only continue unabated,
but will intensify, with the economy and the populace being ever-greater
victims of mismanagement, declining service and soaring costs.

On the other hand, government's fiscal deficits are already untenably great,
and would worsen very considerably if the ministries were to provide an
unending flow of funding to parastatals. Such parastatal financing could
only be funded by government by recourse to yet further taxation of an
already very over-taxed economy and of a populace which is, even now,
grossly imposed upon by considerably excessive direct and indirect taxation,
or by government increasing its devastating great borrowings. Many of such
borrowings are, to all intents and purposes, provided by RBZ, through the
purchase of government treasury bills and loan stock not taken up by the
private sector, and paid for with inflation-creating, excessive printing of
money.

Thus, it will be as undesirable for ministries merely to become funding
substitutes of RBZ for the cash-ravenous parastatals, as it has been for RBZ
to be the financial horn of cornucopia for parastatal inefficiency, and for
parastatal deficiencies. Instead, once and for all, government needs to do
something about total and partial privatisations of parastatals, which it
has recurrently declared as its intent since 1991, but with little
performance, save and except for the very successful privatisations of the
Cotton Company of Zimbabwe, Dairibord, Rainbow Tourism Group, Zimbabwe
Reinsurance Company, and Commercial Bank of Zimbabwe, and some very limited
other partial state disinvestments.

Government, empire-building ministers, permanent secretaries, and the
politically well-connected, need to learn that it has been extremely rare,
the world-over, for governments to run businesses well. Not only do
governments have neither the required expertise and motivation, but those
constituting the governments inevitably being transient in nature, and
normally being devoid of specialised business expertise to run businesses
properly, they are totally unsuited to be engaged in businesses.

This has not only been a Zimbabwean syndrome, but one throughout the world.
For many decades the parastatals of the USA, Britain, France, Italy, Russia,
and many other countries, were business disasters. Year in and year out they
failed to meet the needs of their countries which they were supposed to
satisfy, and were an endless financial burden upon the exchequers.
Eventually, and with immense political reluctance, each of those countries
ultimately embarked upon programmes of privatisation, and with very rare
exception did so with great success. The transcontinental railways of the
USA, that country's telecommunications, and those of the United Kingdom,
British Airways, British Gas, Renault and Peugeot, are but a few of the very
many examples of successful privatisations.

The keys to the successes were the genuine will and determination to
privatise, the choice of strategic partners possessed of required technical
expertise, and other essential resources, and appropriate legislative
deregulation, combined with placing enterprise viability and the needs of
the population ahead of political considerations. Zimbabwe needs all of
these keys to unlock its parastatals successfully, and in order to access
the keys it must be willing to clean-up the parastatals by writing-off their
debts, ridding them of unnecessary super-structures, and restructuring them
with foundations of operational viability, accessing strategic partner
expertise and adequate equity investments.

It is long overdue for Zimbabwe to sort out its parastatal chaos, and the
first step towards doing so is for government to have the courage to pursue,
with utmost vigour, a real policy of privatisation, instead of nothing but
endless, non-performing, lip-service. Until government does so, Zimbabwe
will continue to suffer inadequate and erratic power supplies, fitful
telecommunications, unreliable grain supplies, air services which - despite
recent valiant efforts by Air Zimbabwe personnel - are characterised by
unreliability, and like disservice from most other parastatals.


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Zim Independent Letters



Failure is now a certainty, not an option guvnor!

WHILE- Reserve Bank governor Dr Gideon Gono's policies may be
applauded by some, and religiously so by the Herald, I think there is
something amiss about his policies and the way he runs the central bank.

Firstly, can anyone point out one policy that has borne
sustainable economic fruits at a national level since he stepped into
office?

I am not talking about the many Zanu PF kleptomaniacs who have
since made millions (revalued) by spinning the generous agricultural loans
he dished out through non-agricultural and illicit activities.

I believe policies should stand the test of time if proper
thinking and planning is done and consultations made.

Thanks to Gono's wayward thinking, we are now subjected to
disruptive policy changes in his attempt to please President Mugabe while
economics and market forces are ignored. The result has been an economic
circus.

The world-wide practice of having independent reserve banks
which focus on monetary issues was not crafted by imbeciles as Gono and
Mugabe would want us to believe.

It's a tried and tested method that brings sanity to the world's
economies.

One "success" I can attribute to Gono, which he performed with
ruthless efficiency, was the elimination of some of the best financial and
economic brains in the country through his trumped-up externalisation
charges and other Zanu PF mafia-type antics.

Project Sunrise was like an over-played record which drained
resources only to bring the convenience of carrying fewer dollars.

The reason for over-playing it was to divert attention from
dismal failure on the inflation front.

If one were to do a simple cost-benefit analysis of the RBZ
function under Gono, the result will show that the RBZ has become a white
elephant.

It is well-known that RBZ senior officials are among the highest
paid on the land. How is that for a non-productive parastatal whose record
of missing its own set targets of inflation reduction, money supply, etc is
startling?

Even more sickening is the governor's mantra of "failure is not
an option" when all around him there are signs of failure: industrial
production is at its lowest, agricultural output is low, poverty and the
number one enemy - inflation - are playing havoc.

What a failed economy in a failed state!

Another abrupt policy shift dubbed the "Fine tuning of monetary
policy" is again misdirected as the productive sector will still bleed while
inflation runs amok.

Trying to intervene in everything including the functioning of
the stock exchange under the guise of exposing money launderers or
fictitious terrorists is madness. People need investments with returns that
make sense in this hyperinflationary economy.

Simple free market practice is too much for this "guvnor" hey!

History will surely judge him for having presided over an
economy with the highest inflation level on the planet, and his tenure will
provide a good case study of the most inconsistent and myopic monetary
policies ever.

Failure is not an option but a certainty.

Don Sahayi (Snr),

Harare.

      ----------
      Corporate incest at state media houses

      THE Ministry of Information and Publicity has the
following companies/parastatals under it - Zimpapers, Zimbabwe Broadcasting
Holdings (ZBH), New Ziana, the Media and Information Commission, Transmedia,
and the Broadcasting Authority of Zimbabwe (BAZ).

      Justin Mutasa is the ZBH board chairman. He is also the
group CEO of Zimpapers.

      As a board chairman, he oversees the appointment,
conditions of service and performance of the CEO.

      When the CEOs of Zimpapers and ZBH are called to meet the
line minister or made to appear before a parliamentary committee, they do so
as peers.

      Yet a fellow CEO is overseeing the appointment, conditions
of service and performance of a peer.

      Is the Ministry of Information and Publicity short of
capable hands to fill the position of ZBH board chairman without necessarily
burdening Mutasa, who is also chairman of the Metropolitan Bank of Zimbabwe
Ltd, among other positions?

      We have also witnessed a situation whereby Herald editor
Pikirayi Deketeke is the acting chairman of BAZ.

      The former executive chairman of ZBH, Rino Zhuwarara, was
at one time a commissioner with the MIC, which decides the fate of other
media houses and journalism practitioners.

      Call it corporate incest!

      It is not good corporate governance practice to have the
same people in the various institutions under one ministry.

      Get a list of board members of the above named
institutions and you will be shocked by the cross board membership of people
who are senior executives.

      On a separate note, I am not sure if it's the best
decision to appoint a "content" person as CEO of a media house like what has
happened at ZBH, where Henry Muradzikwa has been thrust in the position.

      They tried it with Zhuwarara. It failed because a content
person cannot spend his day attending to administrative, logistical and
structural matters of a company.

      If he is the excitable type, he will clash with the
editor-in-chief of Newsnet and that will be tantamount to undue
interference.

      LM,

       Harare.

-----------
            Grant Zimbabwean asylum-seekers work/study
permission

            THIS is an open letter to the Refugee Reception
Office, Department of Home Affairs (South Africa).

            We have received several reports from Zimbabwean
asylum-seekers that they have been issued with asylum-seeker's permits by
your offices which stipulate that they are not allowed to work and/or study
in South Africa. The permits which were shown to us were issued in the week
commencing on October 9 and all emanated from Rosettenville, Johannesburg.

            Zimbabwe Exiles Forum (ZEF) brings this anomalous
issue to your attention in its standing as a non-profit organisation
registered in South Africa whose mandate includes the protection and
promotion of the human rights of Zimbabwean refugees. We submit that
refugees are entitled to a means of survival and to education in their host
countries in terms of international instruments including the United Nations
Refugee Convention of 1951 and its 1967 Protocol and the 1969 OAU Refugee
Convention as well as the South African Constitution and the Refugee Act as
amended.

            The prohibition to work and study for asylum-seekers
is highly retrogressive as it also starkly contradicts the pro-refugee
rights approach of the South African courts. The Cape High Court in the
celebrated case of Wachenuka vs Department of Home Affairs in 2002 embraced
the internationally recognised entitlement of refugees to self-sufficiency
rights such as the right to work and to access education, even pending
determination of their asylum-applications.

            What we find to be most disconcerting is that such
prohibitive permits were allegedly issued to Zimbabwean asylum-seekers only
whilst asylum-seekers of other nationalities were not put under such
restrictions during the same period. This, if confirmed, would clearly
indicate an unconstitutional and unjustifiable segregatory policy against
Zimbabwean asylum-seekers by your department.

            In the circumstances, we are compelled to implore
your good offices to immediately launch an in-depth investigation of these
anomalies and to simultaneously retract the offensive permits replacing them
with standard ones.

            Gabriel Shumba,

            Human Rights Lawyer and

            ZEF executive director.

       -------------
                  Pensioners' payouts a pittance, please review

                  I am sure the majority of pensioners share my
feeling that the current payouts are a mockery.

                  I found myself a pensioner as a result of the
present regime's skewed economic policies which resulted in the organisation
I was working for downsizing due to a decrease in business.

                  I am currently getting a payout of $1 510
(revalued), most of which is swallowed by bank charges.

                  I am therefore kindly appealing to Old Mutual
to review the payout to a realistic figure since they are doing very well on
the stock market.

                   Apparently, Old Mutual does not allow anyone
to opt out of their scheme until after two years.

                   Frustrated,

                   Harare.

             ---------
                    Water disconnections are illegal

                    THE Combined Harare Residents' Association
(CHRA) is buoyed by the city's admission that residents have not paid water
rates imposed by the Zimbabwe National Water Authority in May 2006.

                    The threats of water disconnections issued
by the City of Harare's public relations manager Percy Toriro (Daily
Mirror/Herald and Newsnet October 16) were ill-timed, misinformed and
unjustified.

                    Residents of Harare, represented by CHRA,
will go all the way to defend their right to fair treatment and quality
municipal services.

                    The City of Harare will soon realise that it
neither has the capacity nor the law on its side to deal with the so-called
errant residents who refuse to pay the arrears in newly imposed water rates.

                    Water disconnections are illegal whatever
the circumstances. CHRA urges residents of Harare to be resolute in their
rejection of a corrupt, illegal and unaccountable system of administration
led by the commission running the affairs of the City of Harare. For the
city to disconnect anyone's water, they must obtain court orders.

                    The threats issued by the municipality will
soon backfire as residents fully implement their boycott agenda inspired by
CHRA's catchwords: "Do not fund your own oppression".

                    We will continue to mobilise residents to
resist tyranny at Town House. This resolution is informed by the association's
July 2 general council resolution that commits the organisation to campaign
for rates boycotts, holding of public meetings and staging decentralised
peaceful demonstrations against the City of Harare for poor service
delivery.

                    CHRA stands guided by its lawyers. The City
of Harare should be reminded that the implied contract between residents and
itself has to be honoured by both parties. It must first address the water
supply, administration and billing side of the contract before acting
against residents.

                    Precious Shumba,

                    CHRA information officer.

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