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Army fleeced of billions

FinGaz

Njabulo Ncube Chief Political Reporter
.there is a political element
MIDDLEMEN and briefcase companies are being awarded contracts by the
Government Tender Board (GTB) to supply goods and services to the Zimbabwe
Defence Forces (ZDF), possibly fleecing the military of billions of dollars
in botched deals.

This revelation came during a parliamentary probe into military supply
contracts this week. The probe was instituted because of what some members
of the Parliamentary Portfolio Committee on Defence and Home Affairs
referred to as "possible conflict of interest among the army top brass" in a
report published in The Financial Gazette a fortnight ago.
Members of the portfolio committee, chaired by Bikita MP Claudius Makova,
summoned the army top brass to a hearing on Tuesday to give evidence on the
military's procurement procedures.
The Financial Gazette article said members of the committee were concerned
about reports that lucrative contracts were being parcelled out to senior
military personnel and companies run by their immediate families and close
associates.
Although the ZDF commander General Constantine Chiwenga reacted angrily to
the Financial Gazette story at this week's hearing, the secretary for
Defence, Trust Maphosa, admitted that the ministry, General Chiwenga and Air
Marshal Perence Shiri, were unhappy with many of the companies short listed
by the GTB as suppliers to the armed forces, as many had no traceable
business track records.
Maphosa said the committee should impress on the tender board to revise the
list of short-listed companies, some of which he said had badly let down the
armed forces by supplying substandard services or goods-or not supplying
anything at all.
"Some of these firms are middlemen who don't have the goods or services but
buy them from elsewhere. Their prices fluctuate everyday," said Maphosa.
"We know there is a political element in some of these indigenous firms on
the government tender board list as part of the government's empowerment
policy but for the army to get things done or moving we need reputable
suppliers," he said.
"It is costing us time and money. We have cases where it has taken some
companies several years to deliver our orders. Middlemen are playing a major
role in some of these contracts because the tender board is the one which
has short listed them," he added, without disclosing names.
Officials from the GTB were not immediately available for comment, but
allegations of corruption have frequently been raised over the awarding of
government tenders to companies with no known track records.
Reacting to concerns over possible conflict of interest, the army officials
admitted that ZimSafe, a company owned by Chiwenga's wife Jocelyn, had
supplied the army. But they insisted that these supplies had "not been much".
Chiwenga said he had recused himself from adjudicating on tenders
applications submitted by ZimSafe.
"To set the record straight my spouse is not getting any favours as far as
the army contracts are concerned. Besides ZimSafe being a private company in
its own right with its own directors, it has no standing arrangements with
the ZDF. It competes in open tender and when it has won contracts within the
army, which I believe has not been many times and as lucrative as alleged, I
have never been involved because there are strict laid down procurement
procedures to follow," he said.
"When my wife (Jocelyn) brought the issue to this august house in 2004, I
wrote to the then secretary of defence informing him that I should not wish
to be part of the adjudicating procedures in the event the said company
tendered for a job."
He informed the committee that ZimSafe's contact with the ZDF had not been
as significant as suggested. The Zimbabwe Republic Police (ZRP), the
committee heard, was a bigger client of ZimSafe.
"If you check the records, the company (ZimSafe) concerned does not supply
much to the ZNA," said Chiwenga in his defence.
Chiwenga, who has accused textile company David Whitehead of undersupplying
on its contracts, said he, together with other top military personnel, would
soon meet the newly appointed judiciary manager of the company "to try and
sort out the mess there.'


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Esigodini gold miners in free for all

FinGaz

Charles Rukuni Bulawayo Bureau Chief

THE Reserve Bank of Zimbabwe is lucky to be getting any gold at all from
registered small-scale miners if the chaos witnessed by The Financial
Gazette in Esigodini last week is anything to go by.

No one ensures that miners are operating from their licensed claims. When
they take their ore for milling, no one ascertains the quantity of gold they
extract nor where the gold goes.
There was no scale at one of the mills. Officials from the central bank last
visited that mill last year. Police have not been to the mill for more than
a month, though they used to visit it every week.
It is a free for all despite an outcry from both the Ministry of Finance and
the central bank about gold leakages into the parallel market and repeated
pronouncements that these would be plugged.
Production of gold, once the country's largest foreign exchange earner, has
plummeted over the last few years, from about 24 tonnes in 2004 to only 11
tonnes last year, according to the Chamber of Mines.
There is likely to be a further drop this year. Finance Minister Herbert
Murerwa said in his mid-term review in July that production for the first
five months had dropped from 6,4 tonnes last year to 4,3 tonnes this year.
But there is wide spread speculation that gold production has, in fact, not
declined. It is only the gold that is delivered to the central bank, the
sole buyer of the precious mineral, that has declined. Most of the gold is
finding its way into the parallel market instead.
The operations of small-scale miners are a recipe for chaos.
The Financial Gazette visited Esigodini last week after one of the miners
had complained about a fellow miner who had allegedly invaded her claim.
Though she had reported the matter to both the police in Esigodini and to
the Ministry of Mines in Bulawayo, nothing had been done. Instead, her
workers had been driven off the site.
Engelina Msumba, who operates Puma Syndicate jointly with Lydia Mthethwa,
complained that fellow miner Baron Dube had invaded her claim, Duizend Tree
Number 41, after she had struck gold.
Dube is supposed to operate from Duizend Tree Number 10 where, Msumba
claimed, he had failed to strike gold for about two years .
Msumba also claimed that Dube had surrendered her share of the proceeds
after she had agreed that he could mill her ore and sell the gold on her
behalf since she had mined the ore before obtaining a licence.
She claimed Dube had told her he had only obtained 1,7 grammes of gold while
workers at the mill said it was between 25 and 30 grammes.
Msumba was issued with a licence on August 18 while Dube has been operating
since October 2004. She said when she reported the matter to the police,
officers came and drove her off the site instead, claiming she was working
on Dube's claim.
Dube insisted to The Financial Gazette that he was working on his claim. He
said it was Msumba who had encroached onto his claim and was trying to drive
him out because she had solicited the help of some unnamed powerful
politicians.
Msumba, on the other hand, claimed that Dube was being protected by the
police at Esigodini as well as officials from the Ministry of Mines in
Bulawayo. She said he had not only invaded her claim but was grabbing ore
from other miners with impunity.
Dube was indeed issued with a letter, reference number 9970/06, last week by
the Ministry of Mines stating that he should be allowed to work without any
interference, yet the ministry had not ascertained whether he was indeed
working on his claim.
The police spokesperson for Matabeleland South, Inspector Trust Ndlovu, said
he would probe complaints against Dube. The Financial Gazette understands
that the officer-in-charge at Esigodini and the officer commanding the
Criminal Investigation Department for Matabeleland South had been fully
briefed about the matter.
The Mining Commissioner for Matabeleland Florence Thusi refused to speak to
The Financial Gazette until she visits the area. The Financial Gazette was
informed that she and her deputy were supposed to visit the site last Friday
but did not do so.
This is despite the fact that three miners are already fighting for the same
claim.
These are Dube who operates Baron Syndicate with his brother Sifelani and is
supposed to own Number 10, Tommy Dube who obtained his licence in April last
year is supposed to operate Claim number 11 and Msumba who is supposed to
operate Claim number 41.
Though Dube says his claim is about 200 metres wide and 500 metres long, the
three miners' pegs are within 100 metres of each other, while Tommy's is
about 20 to 30 metres from Baron's and Msumba's about 30 metres from Tommy's.
Each miner's claim is registered. Baron's is number 42796, Tommy's number
42970 and Msumba's number 43962. Each was issued with a certificate and a
map indicating the location of individual claims but each miner claims to be
on the right spot, an issue that can only be resolved by the Ministry of
Mines.
This is not the first time that the Ministry has allowed a dispute to go
unresolved.
In 2001, then acting regional president of the National Miners Association,
Daniel Maphosa, accused officials in the Ministry of Mines of fuelling
conflicts among miners.
He said the Ministry of Mines was aware of these disputes but was doing
nothing about them. "The law of the jungle is reigning in the region," he
said.
But what was even more shocking is the lack of accountability on how much
gold is produced and where it goes once it has been milled and refined.
Although workers at the mill are supposed to file returns on the amount of
gold obtained by each miner, they rely on information given by the miners.
In some cases, the miners did not bring scales and took their gold home
promising to weigh it and then tell the millers the weight.
Some of the records seen by The Financial Gazette indicated that some of the
miners had not given the millers the figures for gold milled way back in
March.


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Least tobacco output since independence

FinGaz

Zhean Gwaze Staff Reporter

ZIMBABWE has sold its smallest tobacco crop since independence - 54,2
million kilogrammes - in the just-ended 2005/6 season, further compounding
the country's foreign currency shortages.

The final tally of the tobacco crop, the country's erstwhile premier foreign
currency earner, could be slightly higher once mop-up sales due to take
place on September 26 are taken into account, but indications are that no
less than a million kgs will be realised from the exercise.
About US$109 million had been generated from the season's sales by September
8, the day before the official close of the 2006 tobacco-selling season.
Tobacco Industry and Marketing Board technical services director Andrew
Matibiri said expected deliveries to the country's auction floors after the
deadline were minimal.
He blamed the poor deliveries on incessant power cuts, diesel shortages and
labour shortage as many farmers were concentrating on the winter cropping
season and tending tobacco seedlings for the 2006/7 season.
"We expect just under three quarters of a million from the clean up sales,"
Matibiri said.
The latest tobacco harvest continues a pattern of steady decline that began
six years ago.
The predicted 54.9 kgs attained will represent a further decline from the 80
million kgs sold last season against an earlier projection of 160 million
kgs.
The golden leaf, whose production peaked at 220 million kg in 2000, has slid
year on year over the last six years; from 160 million kg in 2001/2, 85
million kg in 2002/03 and 68 million kg in 2004.
A shortage of inputs, under capitalisation and the government's chaotic land
reform programme have been blamed for the decline of the principal foreign
currency earning commodity.
The central bank has introduced a tobacco performance, research and
development facility, which rewards growers for actual production in the
2006/07 production in a bid to reclaim viability to the sector but the
shortage of inputs is the major impediment.
Under the RBZ facility, growers will get an additional support of 65 percent
of sale value of actual deliveries sold onto the auction floors and retain
15 percent in their FCA with no liquidation expiry time frame.
Matibiri said farmers were 'more than enthusiastic' to produce a better crop
next year but were mainly hampered by the shortage of inputs.
TIMB said a total of 328 kg of flue cured tobacco seed has been sold, which
is sufficient to cover 65 000 hectares and would, under normal
circumstances, translate to 100 million kgs of tobacco.
Zimbabwe's dwindling tobacco crop leaves the country with less hard currency
to buy vital imported commodities such as fuel, grain and medicine.
The government, without balance of payments support from the International
Monetary Fund and other global lenders because of differences over policy
and governance issues, is battling to import some of the critical national
requirements.
The bulk of Zimbabwe's tobacco is exported to Asia and the European Union.


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MP sues Chihuri

FinGaz

Njabulo Ncube Chief Political Reporter

THE MOVEMENT for Democratic Change (MDC) House of Assembly representative
for Tafara-Mabvuku, Timothy Mubhawu, is jointly suing police commissioner
Augustine Chihuri, national police spokesman Wayne Bvudzijena and the
Zimbabwe Newspapers for $20 million over allegations that he organized the
assault on fellow legislator Trudy Stevenson.

Zimpapers - publishers of The Herald - which extensively covered the attack,
is the first defendant, while Bvudzijena and Chihuri are listed as second
and third respondents, repsectively.
Mubhawu had charges against him withdrawn before plea two weeks ago.
"In the issue of The Herald of 10th July 2006, the 2nd defendant
(Bvudzijena) uttered the words to the effect that Plaintiff (Mubhawu) had
planned, orchestrated or organized the attack on the Member of Parliament
for Harare North, one Mrs. Gertrude Stevenson which resulted in the latter
sustaining grave injuries," reads part of the summons served on the three
respondents in the defamation lawsuit. "In the same issue of The Herald, the
1st Defendant (The Herald) published words to the effect that the Plaintiff
had supplied a motor vehicle that was used by the criminals who attacked the
said Member of Parliament. The words were understood by those who read them
to mean that Plaintiff is a man of a violent disposition who does not
hesitate to use violence against fellow opposition members and fellow
Members of Parliament."
Lawyers representing Mubhawu said the words uttered by Chihuri and
Bvudzijena were malicious, false and defamatory of the Tafara-Mabvuku
legislator. Both Chihuri and Bvudzijena were not immediately available for
comment.
Harare magistrate Olivia Mariga ruled that there was not enough evidence
linking Mubhawu to the crime.
The magistrate, however, said the state could proceed by way of summons if
more evidence arose. The legislator had been accused of sponsoring the
attack on Stevenson by allegedly paying $15 000 to youths the state said
were aligned to Morgan Tsvangirai's faction of the split opposition party.
The state had alleged that on July 2 this year Mubhawu had, at his Greendale
residence, organized a meeting where he allegedly declared Tafara-Mabvuku a
no-go area for members of the rival MDC faction.


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Murambatsvina strikes again

FinGaz

Kumbirai Mafunda Senior Business Reporter

GOVERNMENT has knocked down temporary homes in Epworth, about ten kilometres
outside the capital, in a fresh wave of demolitions following last year's
campaign that left thousands homeless.

Armed police and employees of the Epworth Local Board last Tuesday descended
on the hapless Epworth families, razing their housing structures re-built in
the aftermath of last year's Operation Murambatsvina/ Restore Order
crackdown.
Operation Murambatsvina/ Restore Order, which drew local and international
condemnation, left more than 700 000 people without a roof over their heads
last May. The demolition exercise also robbed about 2,4 million people of
their sources of livelihood after police bulldozed slums and what the
government called illegal structures in Harare and other towns.
Besides having their abodes destroyed once again, the victims in the Epworth
operation told The Financial Gazette that they were dispossessed of their
personal belongings, which included bedding and clothes.
"During the destruction the children were clearly struck with fear and
anguish and we found them in tears. The violent ferocity of the destruction
clearly caused them much psychological grief," said Misheck Boora, one of
the evictees who claimed that they were being evicted to facilitate the
construction of a house for a senior official of the Epworth Local Board.
The residents have since approached the Zimbabwe Lawyers for Human Rights
(ZLHR), which has filed an urgent chamber application seeking to halt the
evictions.
In the court application, which is set down for hearing today before Justice
Joseph Musakwa, the evictees contend that they have become extremely
vulnerable and are suffering emotional, mental and physical anguish due to
the continued destruction of their properties.
"This now amounts to torture, cruel, inhuman and degrading treatment. We
further feel that our eviction without being given a say in the matter or
option of a place to go contravenes not just Zimbabwean law but the
international law of nations which we legitimately expect that the
respondents should follow."
Listed as respondents in the court application are the Epworth Local Board,
one Garikayi - an employee of the local authority, Police Commissioner
Augustine Chihuri and Home Affairs Minister Kembo Mohadi.
The forced eviction of the Epworth residents comes at a time when a hastily
arranged successor programme to Operation Murambatsvina called Operation
Garikai/ Hlalani Kuhle has failed to provide much needed shelter for the
homeless who are still living rough. The government has turned down a
proposal by the UN to build temporary shelter for the Murambatsvina victims.


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Questions over key witness

FinGaz

Chris Muronzi Staff Reporter
Lawyers appeal for Shah to be specified
LAWYERS representing jailed Zimbabwe United Passenger Company (Zupco)
chairman Charles Nherera and Deputy Information Minister Bright Matonga, who
are jointly facing corruption charges, have asked Justice Minister Patrick
Chinamasa to specify and investigate businessman Jayesh Shah, the state's
key witness in both their cases.

This comes two weeks after the lawyers - Wilson Manase and Joseph Mandizha-
issued an ultimatum to the Attorney General's office demanding an
explanation as to why Shah was granted immunity from prosecution in the
graft case.
Shah was a key state witness in the bribe-for-buses scam that resulted in
Nherera being convicted of corruption and jailed for two years. He, together
with Matonga, faces fresh charges arising from more information supplied by
Shah.
The AG's office acknowledged receipt of the lawyers' letter, but has not
responded to their concerns, prompting them to approach Chinamasa.
In a letter dated September 11 2006, Manase, who represents Matonga and
Mandizha, representing Nherera, pleaded with Chinamasa to intervene in the
Zupco bribery scandal, which has sucked in senior government officials.
"It is neither our client's jurisdiction, business nor province for them to
tell you what to do . . . However, they would be failing in their duty as
responsible citizens were they not to draw to your attention certain issues
relating to Mr Jayesh Shah's conduct, never mind that they deny their
alleged involvement.
"For, not to do so would leave germane and million dollar questions
unanswered such as, why is Mr Shah an apparent sacred cow?" reads the
letter.
"Our client's position is that were you to allow your mind to be preoccupied
with these and other questions, there is a very high probability that you
will reach the conclusion that Mr Shah and his business should be specified
in terms of the Act, to facilitate thorough investigations.
"Our clients posit that not to seriously consider specifying Mr Jayesh Shah
and Al Shams would leave a lot of serious questions unanswered. Some of them
are these, has Mr Shah been paying adequate or any duty on all the buses he
brings into the country, and specifically those he brought in, already
painted in Zupco colours?"
The lawyers urged Chinamasa to investigate Shah's past deals with some local
banks as well as to look into his residence status. "What is the position of
Mr Shah as far as his residence status in Zimbabwe is concerned? Is he a
citizen or a foreigner with residence status? This question, Honourable
Minister has a bearing on his dealings locally," added the lawyers.
Attorney General Sobuza Gula Ndebele declined to comment on whether his
office had responded to the letter from Matonga and Nherera's lawyers,
saying the director of prosecutions would be in a better position to
comment.


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Inflation seen up, Gono coy on rates

FinGaz

Rangarirai Mberi Business Editor

AUGUST inflation data, expected out shortly, will be in the 1100 -1222
percent range, a Financial Gazette poll of analysts showed.

The August figure had been expected last Friday, but Central Statistical
Office (CSO) director Moffat Nyoni this week said the data has been delayed
due to a lack of funding for research over the past month.
Ahead of the new inflation data, central bank governor Gideon Gono has come
out dovish on rates.
Gono says the increase in speculative activity that followed his last policy
statement - played out by the stock market's strong August rally - was "not
really a function of interest rates expectations alone, but a function of
(the market's) lack of confidence in the economy."
"We will not rely solely on interest rates to fight inflation. We are
searching for a battery of instruments that we can use to fight it," Gono
said last Monday.
This week's Fingaz poll of six analysts and economists shows the lowest
forecast for August at 1100.2 percent, and the highest at 1222 percent.
July's 993,6 percent inflation figure was in line with last month's poll,
which returned a median forecast of 996 percent.
Analysts say the August figure will not continue July's decline, which came
on the back of a month-on-month rise of 25.1 percent that was slower than
last July's record 47 percent jump.
"We are not going to see a continuation (from July). And depending on the
size of the jump, we will see more speculation over central bank's rate
policy," one of the analysts polled said.
Gono's latest remarks on rates suggest that he has no plan to lift rates in
the immediate term, especially as long as he still needs to fund government
spending cheaply, encourage more lending to agriculture and industry while
restructuring government debt.
But, crucially, he is not completely discounting a move on rates either.
Analysts say faster-than-expected August numbers could force Gono's hand and
compel him to reverse the low interest regime he introduced on July 31.
Latest speculation on the market points to a return of 91-day paper at a
lowered 150 percent.


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Hwange blamed for failed Zisco deal

FinGaz

Kumbirai Mafunda Senior Business Reporter

A SENIOR government official has blamed Hwange Colliery Company (HCC) for
the walkout of Indian company Global Steel Holdings Limited from a
controversial deal to rescue the Zimbabwe Iron and Steel Company (Zisco).

It has also emerged that Global Steel had its attempts to take equity in HCC
stymied by government. Documents seen by The Financial Gazette this week
show that upon the surrendering of Zisco's management to GSHL, Zisco had
gone on to terminate a series of supply contracts it had with local and
regional suppliers of raw materials, substituting them for new contracts
with South African company Stemcor in unclear circumstances.
Christian Katsande, the permanent secretary in the Ministry of Industry and
International Trade, told a parliamentary committee that the critical
shortage of coal had ruined the deal. Katsande said Global Steel had grown
impatient over delays in signing the deal, as it was "an international
investor that has other commitments elsewhere."
In March government announced a US$400 million management contract with
Global Steel, saying the deal would rehabilitate the ailing state-controlled
steel works and boost output by more than 17 times. But the deal collapsed
last month after representatives of Global Steel who had assumed management
of the ailing steelworks left, cited the lack of assurances on coal
supplies.
"There were concerns that were raised. They (GSHL) wanted assurances on coal
supplies and that impacted on the perception on the investor. GSHL made
representations to us on coal supplies and we approached the Ministry of
Mines and Mining Development and HCC. Unfortunately these (representations)
were not taken seriously by HCC because the participation of GSHL would
involve issues such as ownership of HCC, which is listed here and abroad. I
think those were the fears," Katsande added.
Katsande admitted that the government had handed over management of what MPs
said was a key national asset without a contract, contrary to initial claims
by government that a deal had been formally signed.
It has been learnt that, in the six months that Global Steel was in control,
four contracts have were cancelled and given to Stemcor under unclear
circumstances. First to be cancelled in April was a contract with the
Reclamation Group, a South African company, which had been for the provision
of technical services to assist production processes. In the same month,
Zisco cancelled a contract with China's Shougang International Trade and
Engineering Corporation to rehabilitate Zisco's main Number 4 blast furnace.
A contract to supply high-sided wagons for the ferrying of coal entered into
with Morewear Industries, a subsidiary of Zimbabwe Stock Exchange-listed
Gulliver, was also terminated.
In June, Zisco revoked a one-year renewable contract for the supply of pool
iron, which it had jointly signed with the Reclamation Group and the
Minerals Marketing Corporation of Zimbabwe (MMCZ) in February 2006.


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NSSA cracks down on errant employers

FinGaz

Chris Muronzi Staff Reporter
Issues orders for bank account raids
THE National Social Security Authority (NSSA) has launched a nationwide
blitz against errant companies it accuses of not remitting employee
contributions to the authority.

Amod Takawira, NSSA acting general manager, confirmed that his company had
launched a crackdown on all employers in the capital and was spreading the
campaign to other parts of the country. NSSA is entitled to garnish the bank
accounts of companies that are found to be in violation of the regulations.
"We have a number of companies that have been caught on the wrong side of
the law and we have had to issue garnishing orders to the banks. But I cant
give any more details on that. This operation is not only confined to Harare
but we will go to other towns without warning," Takawira said.
According to sources, several orders to have bank accounts raided have
already been issued by NSSA against offending companies. Companies had been
making deductions for NSSA from employees, but would fail to remit the
deductions to NSSA.
NSSA recently announced plans to restructure its top management in a bid to
enhance operational efficiencies, and said it was also reviewing upwards its
benefits in response to spiralling inflation. The board says the
restructuring would see the title of general manager being scrapped to be
replaced by the post of chief executive officer.


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Agribank takes it to the big boys

FinGaz

Staff Reporter

CLEARLY buoyed by a set of earnings figures that stunned its many critics,
Agribank has taken its latest step in shedding its "land bank" past by
announcing its intentions to set up a corporate banking arm.

This will place Agribank in direct rivalry with other larger bank players
already in the cutthroat competition of local corporate banking.
Agribank has over the years been dogged by concern over high non-performing
loans and allegations of "political loans".
But, after surprising the market with profit after tax that competed - and
beat - that of several "big banks", Agribank now says a corporate banking
division and "executive banking products" aimed at those who have made money
out of farming are on the way.
"To strengthen the bank's commercial banking operations and to complement
its agricultural development functions, Agribank plans to establish a fully
fledged corporate banking division. This will ensure that the bank provides
competitive banking services and products, in line with the transformation
of newly resettled farmers to viable corporate clients," says Agribank
chairman Steven Makonyere.
Agribank will also launch "Executive Banking products" for high net worth
clients to enhance income flows and support its agricultural developmental
role.
Helped by a total of $3 billion it was given to on-lend by its sole
shareholder, the government, Agribank recorded profit after tax of $2,4
billion at June. Net interest income, up 2925 percent to $4,8 billion, was
helped by strong activity on ASPEF, central bank's concessionary agriculture
lending, the Public Sector Investment Programme (PSIP), and also Treasury
Bills and placements.
Agribank got $1 billion for PSIP and another $2 billion for tobacco lending.
Thirty-four percent of the 50 percent charged to the borrower on loans such
as ASPEF goes to the conduit bank, a factor that contributed to Agribank
ending the term very liquid and with lots of money to allocate to TBs and to
place on secondary market. Cash and equivalents were at $5,8 billion at the
end of the year.
Treasury assets were up 594 percent to $3,4 billion from $574 million. The
large income from treasury activities, that added to its agriculture role,
have now persuaded Agribank to take a stab at a business that it has
previously excluded itself from.


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Rot at Ziscosteel leaves MP 'shaken'

FinGaz

Staff Reporter

THE head of a parliamentary committee investigating the affairs of
Ziscosteel says he has been left "shaken" by the decay at the steel plant,
adding that his committee has failed to confirm whether Global Steel
Holdings' $400 million investment into the company is still intact.
Enoch Porusingazi, chairman of the Parliamentary Committee on Foreign
Affairs and International Trade, said a recent visit to the company found
the company "at zero production."
"I am a bit shaken by what my committee saw at Ziscosteel. The company is
basically not producing, it is on a kind of care and maintenance basis," he
said.
Although Industry and Trade Minister Obert Mpofu recently insisted that the
Global Steel deal was still on, Porusingazi said the absence of Global Steel
representatives at the company cast doubt on whether the deal was dead or
alive.
"We found no officials from Global or their representatives and from our
investigations I cannot say the deal is still on," Porusingazi told Reuters.
"But investigations are ongoing and until we clarify from all stakeholders
what I can safely say is it's not clear whether the deal is on or not," he
added.
Global Steel in March agreed to a management deal to rehabilitate the ailing
steel plant, a key foreign currency earner before independence in 1980.
At the time of the signing, officials said the deal would see output rising
more than 17 times.
The Financial Gazette reported last month that Alois Goho, Zisco's Projects
and Development Manager, had been named as new head of the company,
replacing Global Steel's Lalit Kumar Sehgal in an appointment that virtually
confirmed the end of the deal.
Porusingazi said Ziscosteel was "at a standstill", unable to produce steel
due to shortages of coal and funding to recapitalise and procure spare
parts.
The Global Steel agreement had given the Indian company a 20-year management
contract for the plant, with no option for equity.
Ziscosteel was the main foreign currency earner before independence, but
output has sharply fallen to just 78 000 tonnes of steel annually because
its main furnace - which accounts for 70
percent of production - has been derelict for years.

Journalists barred
Kumbirai Mafunda
Senior Business Reporter

REDCLIFF - THE floundering Zimbabwe Iron and Steel Company (ZISCO) last week
turned down a request by journalists to tour its plant, in a move that
further illustrates the parlous state of affairs at the parastatal.
Journalists that were in the town last week had requested a tour of the
steelworks to observe operations at the troubled steel maker.
But ZISCO's acting chief executive officer Alois Gowo declined the request
saying the state of operations at the company rules out such a visit.
"Whilst we appreciate the value to be derived from such a tour,
unfortunately, the status quo prevailing in our company calls for curtailing
such visits temporarily. I sincerely hope we will be able to make such tours
possible in the near future," read part of Gowo's letter.


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Steelmakers set to triple coal output

FinGaz

Kumbirai Mafunda Senior Business Reporter

STEEL manufacturing company Steelmakers, which began coal production two
months ago, aims to boost its coal production from the current 30 000 tonnes
per month to 100 000 tonnes by March, and has already come to the rescue of
three top industries by supplying them with badly needed coal.

Through its new coal-mining subsidiary Chiredzi Ores of Athracite Lignites
(COAL Zimbabwe), Steelmakers is mining coal for its own consumption at its
iron and steel works in Redcliff and at its Masvingo sponge iron subsidiary,
which trades as Sponge Iron Mining Beneficiation Industry (Simbi).
Steelmakers group general manager Alexander Johnson said the company was
selling its surplus coal to sugar refinery ZSR, the Zimbabwe Mining and
Smelting Company (ZIMASCO) and tyre manufacturer Dunlop. Supplies to Zim
Alloys will commence soon.
"While we were in the process of trying to satisfy our needs, other
industries in Zimbabwe in need of coal have inquired and bought the product
for their own use," Johnson told The Financial Gazette during a tour of the
steel works' plant. "Fifty percent of output will be consumed by our
company. Wherever there is a vacuum, we will fill it. The market is huge and
demand is growing."
Hwange, once considered one of the top producers of coal in Africa, is
battling to mine adequate supplies to feed local industries due a critical
shortage of hard currency to source spare parts for equipment and the plant.
Hwange produced 195 000 tonnes in July, below the national demand of 300 000
tonnes per month. The shortfall has prompted most manufacturers to commit
scarce foreign currency resources on importing expensive but inferior grade
coal from neighbouring countries, among them South Africa and Botswana.
Steelmakers, which commenced operations in 1998, manufactures hot roll steel
products for both the domestic and regional markets in the engineering,
mining and agricultural sectors. It exports steel products to South Africa,
Zambia, Malawi, Botswana and Mozambique.


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Air Zim boss fired, bounces back

FinGaz

Chris Muronzi Staff Reporter

ACTING Air Zimbabwe chief executive officer Oscar Madombwe was suspended
last week, and only bounced back after the parastatal's board of directors
brushed off the ministerial order, highly placed sources at the airline said
this week.

Sources close to the development told The Financial Gazette that Transport
and Communications Minister Chris Mushowe last week ordered the suspension
of the former chief pilot after querying Madombwe's decision to hire Middle
East Airlines to ferry stranded passengers from London in a bid to cut the
cost of accommodating the passengers.
It emerged that the airline, which had increased traffic movement last
month, was servicing the Far East routes and did not have a plane to ferry
passengers from London. Air Zim flies to Dubai on Monday, thrice to the
United Kingdom (UK) and once to Singapore.
Mushowe, who has been accused of meddling in the parastatal's operations,
was reportedly not pleased with the decision to put passengers aboard the
Middle East Airline.
But chairman Mike Bimha and his deputy Jonathan Kadzura, both of whom are
seen as having significant political clout, brushed off Mushowe's orders.
Air Zim has a standing agreement with Middle East Airlines where the latter
can chip in and ferry the former's passengers.
Air Zim currently has three operational planes, but only one, an ageing
Boeing 767, is fit to fly abroad. The other two Chinese-made MA 60 that are
prone to faults service local and regional routes.
According to the same sources, the airline was over-booked last month and
could not cope with increased volumes of passenger movements given that it
operates a single plane for international flights.
"A number of passengers would have been stranded in London if Middle East
Airlines had not come to the rescue but the move did not please Mushowe and
he actually suspended Madombwe. He only bounced back after Kadzura and
company stood their ground and said he should stay since he has years of
experience in the business and is the only person suitable to take up that
position," said the source.
When reached for comment Madombwe refused to comment on the issue and
referred all questions to the board.


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Time to debunk 'image' fallacy

FinGaz

Personal Glimpses with Mavis Makuni

Local Government, Public Works and Urban Development Minister, Ignatius
Chombo, has shown himself to be an immovable object regardless of how widely
or deeply felt the sentiments and grievances of stakeholders falling under
the jurisdiction of his ministerial portfolio have been.

In the face of incessant and loud outcries over his meddling in the affairs
of municipalities and his imposition of ZANU-PF commissions to replace
popularly elected councilors and mayors, the cold-as-ice Chombo has remained
unmoved and disdainful of residents of cities such as Harare, Mutare and
Chitungwiza whose voting rights he has usurped and trampled on through his
boorish ousting of councillors and mayors they have elected.
But lo and behold, while Chombo has perfected the art of being impervious to
local sentiment, he has been breathing fire over views and concerns
expressed by international human rights watchdog, Amnesty International. The
minister was quoted in the press at the beginning of the week, blasting the
organisation over a report it compiled, which questions the effectiveness of
Operation Garikai/Hlalani Khuhle in meeting the housing needs of the
hundreds of thousands of Zimbabweans who were rendered homeless by Operation
Murambatsvina last year.
The international human rights watchdog charged that while 92 460 houses
were destroyed under Murambatsvina, only slightly more than 3000 units had
been built under Garikai/Hlalani Kuhle. This has raised the ire of the
minister, who has illogically dragged the name of the head of the
Matabeleland Diocese of the Roman Catholic Church, Archbishop Pius Ncube
into his tirade against Amnesty international. The Archbishop has been
accused of being the author of Amnesty's report.
Fumed Chombo in apparent self-contradiction, "The report is untrue, it is
inaccurate and basically mischievous. People in lofty offices in London
produced it and Brussels using phone calls to some offices in Zimbabwe."
Chombo said, "For the record, 7400 units have been built with a small number
nearing completion," which seems to tally with AI's observation that not
enough had been done under Garikai/Hlalani Kuhle, unless "a small number"
out of a modest figure of 7000 means something unique to the minister.
Chombo alleged that the AI report was, like the Tibaijuka report compiled by
United Nations Secretary General, Koffi Annan's special envoy, Anna
Tibaijuka, designed to tarnish Zimbabwe's image. The Minister does a very
poor job of trying to dodge the issues and concerns raised by Amnesty
International. If he were not so impervious to public opinion, he would
recall that similar concerns have been expressed by local stakeholders and
civic groups on numerous occasions.
The minister may not like to hear this,but the truth is that he has been
unwilling to come down from his own ivory tower to listen to the people.
He appears to have forgotten that Murambatsvina was a major operation which
took the army and the police almost six weeks of bulldozing "illegal"
structures. With all due respect to the minister, that was a lot of abodes
occupied by flesh and blood humans. Does the minister know or care where
these people who were rendered homeless and destitute by deliberate
government action are?
He can fume all he wants against Amnesty International but the fact remains
that Zimbabweans are asking the same questions. He has never been willing to
put his cards on the table .
Moreover, Chombo's attempts to paint a glowing picture of Garikai/Hlalani
Kuhle are seriously dented by recent reports in which the government itself
admitted that the scheme had been hijacked and abused by corrupt state and
ZANU-PF officials who allocated stands to relatives, girlfriends and
associates. Surely, Amnesty International did not make this scandal up,
which is to be investigated.
When the government embarked on Garikai /Hlalani Kuhle, it announced that it
would build 450 000 housing units in Harare alone by August last year.
Chombo must agree that the 3000 units nearing completion that he talks about
are a drop in the ocean considering the number of people who were thrown out
into the streets in the middle of winter last year when their dwellings were
razed to the ground.
The only people making things up are the minister and his colleagues in
government who rush to hide behind the flimsy claim that anyone who
questions and criticizes their decisions and actions is tarnishing the image
of the country. It is time to debunk this fraudulent claim which the
establishment is using as a smokescreen to evade scrutiny and
accountability.
Surely, the image of the country cannot be more important than the freedom,
dignity and intrinsic worth of the people who compose it? The importance of
the state, the company, the union etc should be measured in terms of its
usefulness to the people and not the other way round as officials in
Zimbabwe have been trying to bludgeon the people into accepting. If the
government does enough positive things to cater for the interests and
aspirations of the populace, the image of the country will take care of
itself. Zimbabwe cannot build a "Berlin wall" around itself to escape
scrutiny and criticism by its own citizens and foreigners alike in a global
village linked together by modern technology.
Chombo would therefore do better to redirect the energy he has been
expending on blaming scapegoats like Amnesty International and Archbishop
Ncube towards addressing the felt needs of the people of Harare for example,
who are fed up with the endless intrigues at Town House under the inept
leadership of Sekesai Makwavarara.


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Traditional herbs controversy rages on

FinGaz

Mavis Makuni Own Correspondent

SOUTH Africa and Zimbabwe's health ministries are currently embroiled in a
controversy over their endorsement and promotion of traditional herbs as
effective alternative treatment for HIV and Aids.

In South Africa, calls are growing louder and angrier by the day for the
sacking of health minister, Manto Tshabalala-Msimang, over her views and
stance on the treatment of the deadly disease. This development comes hardly
two weeks after the International Conference on Aids held in Toronto, during
which South Africa angered Aids activists by highlighting the use of a
concoction of lemons, beetroot, the African potato and garlic to treat the
deadly disease, while downplaying the importance of anti-retrovirals.
Latest reports say that about 80 international scientists have joined South
Africa's Treatment Action Campaign (TAC) in calling on President Thabo Mbeki
to sack his health minister. It is not the first time Mbeki and the TAC have
been at loggerheads.
A few years ago, the South African president caused an international outcry
for expressing views challenging the scientific basis of AIDS. He claimed
the deadly disease was not caused by the human immuno deficiency virus but
by poverty. TAC which believed these unorthodox views were a ploy for the
state to shirk its responsibility to roll out awareness, prevention and
treatment programmes for economic reasons. TAC was obliged to take the South
African government to court to compel it to provide free ARVs for the
public. The organisation resorted to legal action because it was convinced
and research has confirmed, that ARV drugs are the most effective treatment
for AIDS.
To its credit, Mbeki's administration made a major climb down in response to
public sentiment and now has various treatment programmes underway. At the
beginning of this year, AIDS organisations, human rights activists and
people living with the disease in Zimbabwe were galvanized into action after
realizing that the majority of AIDS sufferers did not have access to the
appropriate drugs.
The groups sent a petition to President Robert Mugabe, drawing the
government's attention to the fact that out of two million Zimbabweans
living with HIV and AIDS, only 20 000 had access to anti-retrovirals.
The groups were also disgruntled by the fact the government had trivialized
the marking of World AIDS day last December by scheduling other high profile
events on the same day.
Zimbabwean activists, TAC and organisations in other countries in the region
have reason to argue for greater political will in fighting the pandemic.
Statistics show that of the estimated 40 million people living with AIDS and
HIV globally, the majority, 70 percent, are citizens of countries in
Sub-Saharan Africa.
South Africa has the highest infection rate in the world.
The pandemic is silently decimating the most productive age groups on the
continent. In Southern Africa, life expectancy has plummeted from 62 years
to 48 years over the last decade. Over the last six years, the life
expectancy of women dropped below that of men in Zimbabwe, Malawi, Zambia
and Kenya. United Nations projections show that by the end of this decade
the average lifespan will have dropped to 43 years in Lesotho, Botswana,
Swaziland and South Africa.
In the face of such an apocalyptic scenario, the announcement by the
Zimbabwean government two weeks ago that traditional herbs and medicines
would be incorporated for use side by side with conventional medical
approaches to treat AIDS and HIV is cause for concern. Medical practitioners
and AIDS activists believe that not enough research has been conducted to
establish the efficacy of herbs and their side effects.
Figures released during the Toronto AIDS conference show that 2,8 million
people died of AIDS worldwide last year and the majority of these were in
Sub-Saharan Africa, which has the highest infection prevalence. These
statistics show that 57 percent of infected adults are women and that 75
percent of infected young people are also female.
One of the reasons why AIDS mortality rates are highest in developing
countries is limited availability and access to ARVs, not the scarcity of
herbs and traditional medicines. This is a reality that government officials
on the continent of Africa need to acknowledge when planning their anti-AIDS
campaigns and programmes.
Speaking at the International AIDS conference in Toronto , the chief
executive officer of the International AIDS Vaccine Initiative, Seth Berkley
said, "The AIDS pandemic continues to outpace our efforts at prevention and
treatment, damaging societies and undermining social and economic progress
in developing countries."
He said it was imperative therefore to focus "the best tools of science"
towards conducting vaccine research.
The UN Special Envoy for HIV/AIDS in Africa, Stephen Lewis has urged the
international community to support vaccine research. "There is an urgent
need today for a comprehensive approach to HIV/AIDS - one that balances the
expansion of current prevention programmes with targeted investments in new
medicines and preventive technologies to reverse the epidemic." AIDS and
human rights activists should continue to knock on government doors to
ensure that Africa is not left out.


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Spin them off!

FinGaz

Comment

            THE Reserve Bank of Zimbabwe (RBZ), in what in our own view is a
typical case of throwing good money after bad, has kept parastatals,
teetering on the verge of collapse, on a life-support system.

            Up to last year, the last time for which figures are available,
the central bank had doled out an unbelievable $12 billion (re-valued) for
these bottomless black holes to recapitalise their operations at a time when
central government was finding it increasingly difficult to balance the
books. But for all its good intentions, the RBZ has, to all intents and
purposes, failed to staunch the never-ending bleeding in the state-owned
companies, which continue to pressure public finances.
            The situation in some of these companies, which are exhibiting
classic warning signs of collapse is, for want of a better expression,
shocking and confounding. The companies are not only operating below the
red-ink line but there are no signs of them returning to the black any time
soon. By mid this year the parastatals, which have remained an impediment to
economic growth and a drain on the fiscus, were saddled with delinquent
loans totalling an incredible $76,4 billion. Thus the central bank has all
along been chasing its own tail.
            The foregoing makes it clear that hoping to put a fresh heart
into these debt-laden, underperforming, unaccountable and non-transparent
parastatals through extending loans at concessionary rates is an exercise in
futility. What therefore is the way forward that can provide a durable
solution out of this corporate log-jam?
            There is only one option left to breathe new life into these
monoliths-privatisation. From experience of previous half-hearted attempts
to sell-off state owned companies, which were tucked-in piecemeal, it is
clear that this is one word the government is not comfortable with. But
privatisation is now the only way to go to restore parastatal viability and
help perpetuate that viability. Our only hope is of course that government
has learnt from its stop-go asset disposal exercise, which it subsequently
abandoned in the late 1990s.
            Candidates for the proposed divestiture programme include the
Cold Storage Company, Small Enterprises Development Corporation (Sedco),
National Railways Of Zimbabwe (NRZ), Zimbabwe Electricity Supply Authority
(ZESA), Air Zimbabwe, the Forestry Commission, NetOne and TelOne, among
others. Most of these companies have a common thread that runs through them.
Other than being state owned, the companies are known for their
ever-shrinking accountability, lack of transparency, inefficiency,
disastrous financial performance, mismanagement, choking debt-trap and
corruption. There is therefore need for radical surgery because the
status-quo is simply untenable in an economy whose survival has depended on
a fortuitous combination of circumstances.
            Concerns that Zimbabwe could be reduced into branch office
economy or that the family silver could be disposed off for a song, though
not entirely baseless, can be easily addressed if only the privatisation is
not a panic measure but a comprehensive well-thought out exercise, that will
be implemented to its full expression. The move should be informed by a
genuine realisation on the part of government that its role is to create an
environment that is conducive to doing business, rather than being a major
player in business itself. What's more, as we have said before,
privatisation can also be an effective tool that must be used to bring down
the high rate of inflation by transferring control of the greater part of
the economy from government to the private sector, provided the proceeds
from the sell-off would be used to reduce debt and not for recurrent
expenditure as is government's wont.
            Sadly though, the government seems to be unable or unwilling to
move privatisation at a brisker pace. Yet it indicated early this year that
it would finalise its asset sell-off within a self-imposed time frame of
eight months to this December. By last April, talk of privatisation in
whatever format-joint ventures, strategic alliances and concessioning-seemed
to have returned to the centre-stage of government deliberations, raising
prospects for yet another round of public sector asset disposal.
            But we had our doubts, which is why we said here goes nothing.
We knew this was an impossible target given the enormous diversity of the
state-owned companies which would call for wide-ranging consultation,
exchange of information, full disclosure and the time-consuming due
diligence by prospective investors. And we were not wrong. Government's
stated intentions have not taken that giant leap into reality and they have
remained just that-good intentions that make good economic sense. The
thin-on-detail and somewhat clear-on-timetable divestiture exercise, has
remained mere paper reforms. Yet the need for government to spin-off the
companies, which are currently on a death-march, cannot be over-emphasised.


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Taboo to speak positively about colonial era

FinGaz

The Geoff Nyarota Column

IN certain circles in Zimbabwe it is normally frowned upon or considered
politically incorrect for so-called patriots to speak negatively about the
motherland or positively about any aspect of colonial Rhodesia.

In the early days of independence journalists were specifically enjoined to
concentrate on developmental journalism.
Veteran journalist, Bill Saidi, cynically characterized this type of
journalism, which was championed by then Information Minister, Dr Nathan
Shamuyarira, as the writing by journalists of endless articles about
government ministers officially opening rural toilets.
Saidi's paper, The Daily News on Sunday was banned back in 2003 as part of
the ruthless campaign by Dr Tafataona Mahoso and Professor Jonathan Moyo to
promote the image of the government of Zimbabwe through the ruthless
suppression of press freedom. Saidi and his staff, as well as the staff of
The Daily News and two other smaller newspapers, have been rendered jobless
ever since. Despite their professional skills and the patriotic role they
played in keeping their countrymen well informed on issues of interest and
relevance to them, they now suffer the consequences of tyranny.
I understand Dr Mahoso's tenure of office was extended last week. His
masters must be happy with his performance. Meanwhile, Professor Moyo vents
his spleen on his former masters with venom and vengeance at every available
opportunity. Perhaps, he hopes this will obliterate from the public mind the
indelibly etched memories of his nefarious association with them from 1999
to 2004.
Like many other patriotic and honest citizens, it is with a very heavy heart
that I am forced by the reality of what is happening on the ground in
Zimbabwe today to speak with nostalgia occasionally about the era preceding
the independence for which we made such immeasurable sacrifices. Most of us
are too jingoistic, however, to state openly that in many respects the
living standards were better under Ian Smith than they are now under our
supposedly patriotic and once revolutionary political leadership.
I am certain that over the past few weeks, a period during which Reserve
Bank Governor, Gideon Gono, has effectively impoverished both the rich and
the poor as well as the powerful and the meek, the temptation has been
irresistible on the part of Zimbabwe's long-suffering population to throw
their hands up in despair and declare: "This never used to happen under our
oppressor, Ian Smith."
I have heard this said in private conversations as far back as 2000. Of
course, speakers always cast their eyes around to ensure that there is no
representative of the not-so-gentle men in very dark glasses around. A few
indiscreet but innocuous fellows have been hauled off a commuter omnibus
after they spoke ill of President Robert Mugabe and/or his government
without realising that our feared leader and his men have ears listening in
the most unlikely places.
What triggered off this trend of thought in my mind was a recent discussion
with the father of a friend. The father had just visited him in the United
States. Our discussion took me back in time to pre-independence rural
Rhodesia, where the long trek to the communal dip-tank was the highlight of
the week for the average village youth.
Each dip-tank served dozens of villages in the surrounding area. On the
appointed day young men drove hundreds of cattle for their respective
families to the dip-tank for their weekly dip. This was an occasion whose
significance and magnificence in Zimbabwe may now be lost, perhaps,
irretrievably.
It was a day of fist fights, bull fights and even dog fights. Without the
luxury of boxing gloves, the local Muhammad Alis would beat the living
daylights out of weaker opponents, as onlookers urged and the girls cheered.
The biggest challenge of the day was, however, to ensure that every beast
took its mandatory dip into the murky liquid which guaranteed that animals
remained tick-free for the next week. Occasionally the district veterinary
officer, usually a young white colonial officer hardly out of his teens
arrived in a government Land-Rover to grace the occasion with his presence.
He deftly jabbed every animal with a syringe as villagers looked on with a
curious mixture of awe and admiration.
Even the lowly job of dipping-tank attendant was a venerated occupation.
Between them, the veterinary officer and the dipping-tank attendant ensured
that the rural cattle population remained in excellent health. When a beast
died in those colonial days it was because the owner decided to slaughter
the animal for one good reason or another, not because it collapsed,
frothing at the mouth, with its hind legs kicking spasmodically.
My friend's family hails from Charumbira District in Masvingo, close to
Bondolfi Mission. The old man told us that he had lost the pride of his
herd - a hybrid descended from a Brahman bull that he patriotically
liberated under cover of darkness from a white-owned farm during the war of
liberation. The bull had collapsed in the cattle pen, leaving the old man
with no option but to finish him off.
The old man, whom I had the honour and privilege to meet initially when he
first visited his son in 2004, said his brother had endured even greater
loss. Four of his animals died in quick succession during the months of May
and June. He was unequivocal in diagnosing the ailment that had so
drastically decimated the family investment in such a short period of time.
"It is now ages since the cattle last visited the dip-tank," he lamented in
a voice that conveyed the full force of his grief. "This never used to
happen before independence. The government is now letting us down."
In a bid to console the grieving old man I told him that in my own part of
the country, Makoni District in Manicaland, cattle had died in large numbers
over the years for the same reasons.
During his visit in 2004 I was impressed by the old man's unflinching
support for the ruling Zanu-PF party and for Mugabe, especially. His
political philosophy at the time was simple. The opposition drew the bulk of
its support from misguided urban dwellers who, unlike their rural
counterparts, contributed little to the struggle for the liberation of the
country. I failed dismally to convince him that the problems encountered by
the majority of Zimbabweans - the commodity shortages, the ever-escalating
cost of living, the rampant unemployment, Gukurahundi, Murambatsvina and the
decline in the standard of health services, to mention some, were the direct
result of negligence or vindictiveness on the part of a selfish ruling
elite.
In rural Zimbabwe, a person's wealth is measured by the size of his or her
cattle pen. Because of the current economic situation, urban and even
Diaspora folk have taken to investing in cattle back in the village as a
hedge against run-away inflation. I understand cattle prices went up soon
after Gono slashed the three zeros from the currency. A week or so before
Gono's devaluation of the currency The Herald, which normally does not see,
hear or speak any evil, where the government is concerned, revealed that the
bulk of the $43 trillion reportedly circulating in Zimbabwe in cash could
not be accounted for.
Far from singing praises of the party, the old man now spoke in anger about
leaders who visit the village in Mercedes Benz cars when the government
cannot afford to buy chemicals for the dip-tank.
If the Mercedes Benz limousines allocated to government ministers,
especially Agriculture Minister Joseph Made, were downgraded to more
practical and much cheaper four-wheel-drive vehicles, the resultant savings
would exceed the amount required to purchase chemicals for all rural
dip-tanks for months on end. Zanu-PF would instantly win back the support of
my friend's old man and his brother in Masvingo.
The good health of their herd of cattle is a bread and butter issue among
rural folk in our country. Yet political manifestos rarely make reference to
veterinary issues. Not so long ago one of Zimbabwe's numerous unsung heroes
and heroines, Dr Stuart Hargreaves, the principal director of the department
of veterinary services, urged farmers to vaccinate their cattle against
disease. The department also said it needed at least $1,2 trillion (now less
three zeroes) for the effective control of diseases countrywide.
My apologies to all concerned for speaking so positively about the past.
SA, our mighty neighbour
I flew into Johannesburg International Airport last week at the beginning of
a visit to the City of Gold. When the Thabo Mbeki cabinet approves a
proposal before it the airport will undergo nomenclatural transformation to
become Oliver Tambo International Airport, in honour of the late ANC leader.
What struck me most during the visit was not the impending change of name.
Rather, it was the structural metamorphosis taking place to enhance the
image and the capacity of Africa's largest airport.
The magnificence and efficiency of this airport have already set it apart
from the rest of airports on the continent, placing it effectively in the
domain of the gigantic structures that serve the cities of the First World.
Harare International Airport, a premature baby, in comparison to such
behemoths, never mind our patriotism, will be rendered totally inadequate,
once the volume of business and tourist passengers reverts to normal, when
our current political and economic crises are resolved.
A total of 42 international airlines fly into Johannesburg, while South
African Airways operates services to 35 international destinations.
On the occasion of South Africa's tenth anniversary and the inauguration of
President Mbeki's second term of office in 2004, the South Africans
dispensed with the usual Air Force fly-past.
SAA were contracted to organise what turned out to be a giant fly-past,
literally, over the venue of the celebrations in Pretoria. Throwing all
modesty to the wind, they laid on a show of gigantic proportions. The aerial
display comprised two Airbus 340-600s, flanking a Boeing 747-400. These are
the largest commercial aircraft currently in service in the world.
Sitting among the gathering of international dignitaries, President Mugabe,
who had jetted in on Air Zimbabwe's modest and ageing Boeing 767, must have
felt palpitations of the heart, as he gazed skywards to watch the giant
aircraft sweeping low in an awesome display of wealth and might.
The SAA fleet comprises a total of 97 aircraft altogether, including nine
Airbus A340-600s and eight Boeing 747-400s. As a fervent patriot, I will
refrain from saying much about Air Zimbabwe's pitiful fleet of two Boeing
767-200s, three Boeing 737s and three MA60s.
Johannesburg International Airport overtook Cairo International Airport in
1996 as the busiest airport in Africa. Founded in 1952 and christened Jan
Smuts Airport, it is not only the second busiest airport in the
Africa-Middle East region after Dubai, but also one of the busiest airports
in the world.
Oliver Tambo Airport is likely to witness the arrival of the new Airbus A380
in the early stages of its service. The double-decked A380, which is
currently undergoing tests, is now the largest passenger airliner in the
world, with a capacity, in certain configurations, of up to 600 passengers.
The manufacturer has already listed Johannesburg's airport as one of the few
destinations worldwide capable of handling the colossal aircraft.
As I sat in the departure lounge last Thursday, having a panoramic view of
construction work aimed at enhancing the capacity of the airport in
preparation for the 2010 FIFA World Cup Tournament in South Africa, I had
this sinking feeling that Zimbabwe had squandered a God-sent opportunity for
similar development, while our government pursued misguided economic
policies with singular and suicidal determination.
Saying of the week
"It is only in Zimbabwe that government funds are used generally to build a
retirement home for the president. If President Mbeki is paying this out of
his own pocket ... there might be some eyebrows raised about where he got so
much money, but it's his own business." - Douglas Gibson, chief whip of
South Africa's opposition Democratic Alliance (DA) (The Mail and Guardian).


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Be afraid, very afraid!

FinGaz

No Holds Barred with Gondo Gushungo

EARLY this year the Committee to Protect Journalists (CJP) published its
list of the 10 Most Censored Countries, in the world.

Zimbabwe, where a strong anti-private press sentiment within the
establishment has seen the authorities go to the ends of the earth to muzzle
the media through draconian laws, was not on the list of the countries that
hate freedom of the press, free speech and indeed free spirit for all
people. To many, this was an inexcusable omission.
On the list was North Korea where the official Korean Central News Agency at
one time unbelievably reported that the country's leader Kim Jong II is so
beloved that after a deadly munitions train explosion in a populated area,
people ran into buildings to save the ubiquitous portraits of the "Dear
Leader" before they rescued their own family members!
If this is not stretching credulity to the limit then I don't know what is.
But then again, the destruction of the distinction between reporting and
creative writing is what happens in countries where dictatorial regimes
thrive on using power in an unreasonable way that is contrary to social
justice, equity and good conscience by telling people what to do and not
listening to their views or wishes.
The other countries on the infamous list were Turkmenistan, Libya, Eritrea,
Cuba, Uzbekistan, Syria, Belarus, Burma and Zimbabwe's new friend,
Equatorial Guinea, where state radio has reportedly described the country's
leader, President Teodoro Obiang Nguema Mbasogo as "the country's God" who
has power over men and things!
These countries have one thing in common: most of them are ruled by
strongmen who have remained in power by manipulating the media and rigging
elections. The various media in these countries foster a personality cult.
CJP gave an example of how on state television in Turkmenistan "President
For Life", Saparrmurat Atayevich Niyazo's golden image is constantly
displayed in profile at the bottom of the screen.
It might have been flattering for the powers-that-be in Zimbabwe that the
CJP thought that the country could not be mentioned in the same breath as
those dictatorships that muzzle the media through restrictive laws, fear and
intimidation. The CJP might have felt that Zimbabwe had a semblance of
democracy-regular though hotly disputed elections; and Parliament albeit a
rubber-stamping institution which over the past 26 years has not been able
to always produce faultless pieces of legislation, which do not contradict
certain provisions of the Constitution.
Thus although there is a glaring absence of freedom of the press after
Zimbabwe tightened controls and introduced harsh press laws-the Access to
Information and Protection of Privacy Act (AIPPA) in March 2002, the country
did not deserve a red flag. Or so the CJP thought.
But as I said in this column on May 25, 2006, the danger signs are flashing
with blinding effect if the latest manoeuvres to suppress - through
statutory provisions - disclosure, dissemination and public discussion of
sensitive information are anything to go by.
The government, which has observably been growing paranoid and desperate,
does not say it in so many words. But that is precisely what it seeks to
achieve through widely-condemned laws such as AIPPA, which are to me perhaps
the central paradox of Zimbabwean politics.
Moreso when journalists are continuously attacked by ill-poised and insecure
government apologists, even for stories sourced from courts of law and
public inquiries by Parliamentary Portfolio Committees into issues of
national interest, among others. The sixty-four-thousand-dollar question is:
why is government instituting these inquiries anyway if it does not like
what is coming out of the wash? Or is it all window dressing for the public's
benefit?
And it gets worse with the Interception of Communications Bill. The sponsors
of the Bill, whose passage is being pursued with characteristic fervour,
vitality and eagerness, speak of it feelingly. But tragically, Zimbabwe is
sailing very close to the wind. New danger stalks the nation because all
this means is that the country is on the cusp of joining the North Koreas,
Cubas, Eritreas, Burmas, and Syrias of this world.
And Zimbabweans have every reason to be afraid, very afraid. Such laws are
prejudicial to the country's nascent democracy. And Zimbabwe needs the said
offensive laws as much as the country's citizens need holes in their heads.
All that is happening now proves beyond reasonable doubt that AIPPA, one of
the towering obscenities of ZANU PF rule, was a straw in the wind which
suggested a plethora of chain-laws that reinforce censorship. The bad laws
are formulated in reprisal for what the government calls negative publicity
for which it has absolutely no one but itself to blame.
Among these is the Interception of Communications Bill, which is meant to
authorise government to monitor and intercept any communication within the
country or inter-state. It does not matter what the moving spirits behind
this distasteful Bill say, the bottom line is that it marks a drift from the
basic fundamentals of democratic governance by a government that brooks no
dissension, critical and divergent views.
Otherwise, why the sustained assault on democracy? Why does a government
that claims to have a popular mandate to rule want to keep an iron grip on
information? Are these the actions of a popularly elected government that
does not have anything to hide? The mind boggles!
What is the government so afraid of that it sees nothing wrong with the
Interception of Communications Bill which to all intents and purposes, if it
becomes law, will work against the free flow of information as it will
facilitate the establishment of a monitoring agency much like Cyber Warfare
Division established by the military junta in Burma to monitor
telecommunications and facsimile traffic?
In asking all these questions, my aim is to persuade government to abandon
the Interception of Communications Bill. But given the robust and spirited
defence of this monster by its sponsors, and an assortment of crazy
government apologists, it is obvious that I don't have a snowball's chance
in hell of convincing the government, hell-bent on pushing for the bill to
become law for no plausible reason but to suppress disssent.
But if it's any consolation-and this might be difficult to understand for a
government which saw nothing wrong in changing the country's constitution
using its disputed majority in Parliament without running the issue up the
flagpole to see what people would say- one thing is clear: the
powers-that-be are spitting into the wind if they think that the
restrictions will stop news about Zimbabwe going to the outside world.
Even if the intrusive Bill finally becomes law the Zimbabwean situation will
be no different from other countries where, for all their restrictions,
like-minded governments have dismally failed to stop completely the flow of
information. Journalists, particularly foreign ones whom these governments
have no control over in terms of publishing, will continue to get
information from underground sources and leads from sympathetic government
officials.
This has happened elsewhere. Burma is a case in point. Already, here in
Zimbabwe, we have seen how Studio 7, and SW Radio have continued to transmit
despite incessant government efforts to jam them.


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Controversy Stalks Hlalani Kuhle



Financial Gazette

September 14, 2006

Charles Rukuni
Bulawayo

Operation Hlalani Kuhle, which in Bulawayo is centred around the sprawling
suburb of Cowdray Park, continues to be mired in controversy.

The Bulawayo City Council, which is the responsible authority, says people
should only occupy houses built under the programme after they have been
issued with certificates of occupation. This is meant to ensure that the
houses have water and sanitary facilities.

The government says people should occupy their houses immediately. Problems
can always be solved later.

While sympathising with the plight of the beneficiaries, the Bulawayo City
Council says it has an obligation to protect the health of the residents of
the city.

The housing scheme was bulldozed by the government, which ignored standing
council provisions that roads, sewer, electricity and water should be
provided before any housing construction begins.

The scheme was implemented haphazardly to appease house-seekers after the
government had destroyed hundreds of shelters under Operation Murambatsvina.

It involves nearly 4 000 stands in Cowdray Park most of which were sold to
individuals, companies and co-operatives to develop after the government had
run out of money.

According to the council's health department, the construction of houses on
virgin, unserviced land had inherent problems that would in the long run
negate whatever gains might have been envisaged.

"Lack of water and sewer reticulation compromised hygiene standards and
created a nuisance of fouling in open spaces," a report by the department
said. "Lack of road networks hindered orderly domestic waste removal,
promoting creation of mounds and hills of garbage."

Despite these problems, the department said, some people had gone ahead to
occupy incomplete houses. To ensure that residents complied with public
health by-laws, the department was serving residents with notices to ensure
provision of sanitary facilities or to vacate.

It, however, said this was difficult to enforce because of the present
shortage of fuel. Police were also reluctant to arrest those violating the
by-laws so that they could be prosecuted.

The department said though it is inhumane to evict people who could not be
given alternative accommodation, firm action needed to be taken to protect
the health of the communities.

"This problem would be solved when the building inspectorate ensured that no
house was occupied until it was issued with a certificate of occupation,"
the health department said.

"The cost of dealing with the health risk of disease outbreak for both the
occupants and the whole of Bulawayo would be great. Prevention is better
than cure."

The department's stance, however, seemed to have divided the council with
some saying people should be allowed to occupy their houses while a solution
to the sanitary problems was being sought. Others argue that the city should
not be put at risk for the benefit of a few since the problem was not of
council's making but that of government.

To make matters worse, Local Government Minister Ignatius Chombo, who
bulldozed the programme over the local authorities, was reported to have
told residents at the weekend that they should go ahead and occupy their
houses.

Chombo, who has literally run down the City of Harare, was quoted by the
pro-government media as saying: "All the beneficiaries should come and
occupy their houses. If it means we have to establish temporary toilets, let
it be done. Imagine 400 families moving in here. That is the aim of the
operation and that is what we want to see happening."

An international human rights organisation, Amnesty International last week
condemned Operation Hlalani Kuhle saying it had only provided 3 325 houses
instead of the required 100 000, more than a year after the programme was
launched.

Chombo described the report as malicious, untrue and unfounded, claiming
that the London-based organisation was just regurgitating reports from
Archbishop Pius Ncube of Bulawayo.

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