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Zimbabwe's 'Clean-Up' Homeless Face Deteriorating Conditions

VOA


27 September 2005

Undated image Aug. 20, 2005 by Amnesty International alleges to show people cleared out of camps for those the Zimbabwe government made homeless under its Operation 'Drive-Out-Trash', and secretly relocated to an area outside of Harare
This image made from an undated video released Saturday, Aug. 20, 2005 by Amnesty International alleges to show people cleared out of camps for those the Zimbabwe government made homeless under its Operation Murambatsvina, or Operation Drive-Out-Trash, and secretly relocated to an area outside of Harare known as Hopley Farm
Three months after the United Nations warned that Zimbabwe's urban clean-up campaign "unleashed chaos and untold human suffering", the status of many of the 700,000 people who were evicted from homes and businesses is deteriorating further.
  

Summer rains are just weeks away and most of those made homeless in May and June are still living in the open.  Most have not gone to rural areas as the government wanted.

Roderick Tchakayika, age 48,  was a street trader and had built a three room brick house, in a suburb 20 kilometers north of Harare. He lost his home and livelihood when both were destroyed on June 19 and  is still living in the open with five children.  

The urban campaign officially named Operation Murambatsvina translates into "clean out the filth," in the majority Shona language.  President Robert Mugabe, who ordered the campaign says the action was taken to clear illegally-built slums that bred criminal activities. But Mr. Tchakayika says he believes it was instead calculated to drive out urban supporters of the opposition MDC, Movement for Democratic Change.

"Murambatsvina, they did murambatsvina," Mr. Tchakayika says. "Maybe they just want to start violence to the people maybe, they don't want the people to stay in town because most of the people in town they are voting for MDC.   How can I go to rural area, because if I go there the chief said no, go back to your place, if I come here in town they say no, go back, so where can I go? Nowhere to go. So I am just like a street kid."

Mr. Tchakayika says he will have to remain living in the suburb he moved to 18 years ago, as he has no relatives in the rural area where he grew up.

He says he is hoping that the Catholic Church will provide him with a one room plastic shelter before the rains come, usually in early November. The Church plans to build 300 shelters before the rains.

At the northern edge of his suburb there are 50 small brick houses under construction by the government, since the United Nations condemned the demolition campaign as "inhuman."

The people in this suburb say they do not know who will be allowed to live in the houses when they are complete. The Catholic Church says four thousand homes were knocked down and need replacing, in this suburb alone.

None of the residents of this or other urban suburbs in most of Zimbabwe's towns and cities have been recipients of international aid before. Even though they were poor, until now they were generally able to fend for themselves.

Mr. Tchakayika was selling vegetables in the streets before he was stopped by the government in June.

The United Nations has provided safe drinking water for several affected communities, and other non-governmental organizations have been delivering food since May and June. The NGOs do not want to be named because they say they fear their efforts to help people will be stopped.

President Robert Mugabe was quoted in the state's Herald newspaper Monday, that many NGOs have political agendas.


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Former Langley man attacked in Zimbabwe


Vancouver Sun - Jonathan Fowlie


September 27, 2005

Zimbabwe President Robert Mugabe's security forces have attacked a former Lower Mainland man who was growing coffee in the African country, driving him and 250 of his workers off the land he has been farming with his family for more than five years.
David Wilding-Davies, a member of the Canadian equestrian team at the 1988 Seoul Olympics, trained horses in Langley before the family moved to Zimbabwe in 2000. He was attacked on his farm early last Wednesday morning.
"They drove us off, we really didn't have much option," Wilding-Davies told The Vancouver Sun on Monday night from Harare, where he was staying with friends.
"We've got to wrap up operations," he said despondently. "It doesn't look like there is going to be a possibility to continue here."
The government of Zimbabwe, the former Rhodesia, has seized nearly 4,000 farms since 2000 for redistribution.
Wilding-Davies said he and Allan Warner, the farm's manager, were attacked by a security force led by a member of Zimbabwe's Central Intelligence Organization -- which operates out of the same office as Mugabe.
"My manager was attacked, I got assaulted, we were shot at with weapons and I had to pack up and go," said Wilding-Davies.
The armed men attacked Warner first, and then went after Wilding-Davies when he tried to intervene. Warner, who lives on the farm, was knocked down and kicked and required multiple stitches. Wilding-Davies said he was not as badly hurt.
After the attack, Warner told the Zimbabwe Standard: "A senior member of the [Central Intelligence Organization] was carrying an Uzi light machine gun and he pointed it at me but when he tried to fire it, the gun jammed, which was very lucky for me. When I tried to escape on a motor bike, they descended on me and beat me up."
Wilding-Davies, 38, and his wife Amy moved to Zimbabwe in March 2000 and have been growing coffee for export.
Nick Holmes-Smith, a former teammate of Wilding-Davies at the Olympics, said his friend was the top North American junior rider in 1985 and went to the world championships in 1990.
Holmes-Smith said he was visiting Wilding-Davies more than a year ago in Zimbabwe when a mob of about 100 people came to try to intimidate Wilding-Davies off his farm.
"He's got a very cool head," Holmes-Smith said, recalling he and Wilding-Davies retreated to the farmhouse and then escaped. "He's very determined," he added. "Most people would have left ages before."
On Monday, Wilding-Davies said he was saddened to lose his farm, especially given how much he, his family and his staff had put into it. "It was a dilapidated farm we bought in 2000," he said. "It was completely run down and we got it going with a lot of hard effort and a lot of investment into a top coffee farm," he added.
He said the farm had grown to the point where it was exporting about 150 tonnes of coffee each year, and bringing about $350,000 Cdn into the local economy.
"It's a crying shame," he said. "In a country where the economy is in freefall, there is massive unemployment, there's no investment and there's food shortages it just seems ridiculous to close down the agricultural sector."


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SA confirms ongoing loan talks with Zim

Sunday Times


Tuesday September 27, 2005 11:34 - (SA) 
 
South Africa confirmed that talks with Zimbabwe were continuing on possible loan assistance to its troubled northern neighbour.

"We have not broken off discussions," National Treasury spokesman Logan Wort said in Pretoria. "Zimbabwe has not rejected assistance."

The fact that Zimbabwe had managed to raise the funds to pay US120 million (some R768 million) towards its International Monetary Fund arrears did not change the fact that it needed financial help, Wort said.

Other assistance required included the immediate alleviation of food shortages and funding for agricultural inputs "so the country can have food next year".

The talks were focusing in large part on Zimbabwean plans for the restructuring of its economy. Previous indications were that the assistance was likely to come in the form of a loan and grants.

Wort could not say how much money was involved.

Recent estimations of about US400 million would now in all likelihood exclude the money already paid to the IMF.

There was no indication of when the talks would be concluded. "I cannot confirm when the next meeting will be," Wort said.

Finance Minister Trevor Manuel and SA Reserve Bank governor Tito Mboweni have been involved in the discussions with their Zimbabwean counterparts.

Neither SA Reserve Bank nor the Government Communication and Information System (GCIS) was prepared to comment.

Earlier, the Zimbabwean Herald Online quoted that country's central bank governor Gideon Sono as saying talks on assistance from South Africa were ongoing.

"As the central bank, we are looking forward to the conclusion of the negotiations that will replenish our coffers accordingly," Gono said.

"The assistance from South Africa is in the form of a loan which will have to be repaid at some stage in the future from our mineral, agricultural, tourism and manufacturing exports."

Gono said most of Zimbabwe's payment to the IMF came from banks in New York and London.

The funds had been sourced from export proceeds, free funds and foreign currency liquidations, he said.

Recent reports have said the IMF intended verifying the origin of the money.

Gono gave details of the sources of the funds to IMF directors in Washington on the eve of a September 9 executive board meeting to decide on Zimbabwe's fate.

Of the funds, US$90 million (R576m) was paid through the Federal Reserve Bank of New York, with the balance being transacted through Absa Bank of South Africa.

Zimbabwe reduced its arrears with the IMF to US$175 million (R1,1 billion) with last month's payment. This swayed the majority of the IMF's executive directors to vote against the country's expulsion and grant it a six-month reprieve.

Gono said it was unfortunate that some quarters felt offended by Zimbabwe's ability to pay part of its arrears from its own resources.

"The fact that we surprised everyone with the payment should not in itself cast doubt on our creativity and ability as the central bank and, indeed, the nation's resolve to take sacrificial measures in the wake of threats to national interests."

Gono made an undertaking to clear the arrears by November next year.

Sapa


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Harare Eyes Anglo-American in New Land Reform Push

VOA


26 September 2005
Interview with Walter Dewit
Listen to Interview with Walter Dewit

Zimbabwe’s ruling party is internally divided over the latest round of nationalizations in the land reform process which has been under way since the start of the decade, say sources in the Zimbabwe African National Union-Patriotic Front, or ZANU-PF.

A number of properties targeted for acquisition are owned by global commodities giant Anglo-American Corporation, based in South Africa, raising the stakes given the risk of more seriously alienating international investors, economists and analysts say.

Documents obtained by VOA indicate that Justice Minister Patrick Chinimasa and State Security Minister Didymus Mutasa – also heading land reform – want the state to take over timber, tea and sugar plantations in Manicaland and the Lowveld region.

Mr. Chinimasa states in the cabinet document that this will be a “mopping up exercise with those farms which (earlier) escaped the net being accounted for and gazetted for acquisition” by the state. The Anglo-American properties fall into this category.

Anglo-American recently sent a notice to shareholders saying its Hippo Valley Estates, a large sugar plantation in the southeast of Zimbabwe near Mozambique, continue to be listed for state acquisition despite corporate legal objections to the listing.

First Vice President Joseph Msika and Reserve Bank Governor Gideon Gono, fearing the economic consequences of expropriating corporate property, are said to have asked President Robert Mugabe to veto the Hippo Valley acquisition.

Anglo-American's Triangle Sugar Estates and Mkwasine Estate are similarly listed for compulsory acquisition by the state. The three plantations produce all of Zimbabwe's sugar output, which in 2004 totaled 236,000 metric tons worth some $91 million, much exported to neighboring countries and an important source of foreign exchange.

Reporter Blessing Zulu of VOA’s Studio 7 for Zimbabwe spoke with research and risk analysis chief Walter Dewit of Pan-African Advisory Services, Johannesburg, about Harare's latest land reform push and what this could mean for the economy.


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Zimbabwe loses 'cream' through brain drain

Mail & Guardian


Harare, Zimbabwe


27 September 2005 01:10

A massive brain drain is depriving Zimbabwe of health professionals, teachers, accountants, scientists and engineers, according to a government report quoted in a newspaper on Tuesday.

Half a million Zimbabweans, mainly professionals in the health and education sector, have migrated, according to the study by the Scientific and Industrial Research Centre (SIRDC) quoted by the state-run The Herald.

"Zimbabwe's brain drain could be headed for a major crisis point with research indicating that 500 000 of the country's mainly professional cream has left the country," the study said.

The centre acknowledged the figure could be "a gross underestimation of the actual number after only 479 348 questionnaires were returned from a batch of over a million".

The study said there were about 20 000 scientists and engineers in Zimbabwe but that a larger number had left.

"One reason for there being fewer scientists left in Zimbabwe is that government and private sector spending on research and development is only 0,2% of the gross national product," the study said.

"The health and teaching professions, already being decimated by the HIV/Aids pandemic at home, were the most affected by emigration while accountants constitute a significant 16,9% proportion of the total number of Zimbabweans in the diaspora."

The researchers urged President Robert Mugabe's government to create "necessary economic reforms that make staying at home more attractive and rewarding for educated Zimbabweans".

Private economists estimate that more than one million Zimbabweans have migrated mainly to neighbouring South Africa, Britain and the United States, fleeing deterioting economic conditions characterised by triple-digit inflation, joblessness and perennial shortages of basic goods such as fuel.

Scores of opposition supporters left the country at the height of tensions in 2000 to seek political asylum in Britain. - Sapa-AFP


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Thousands of migrants in Zimbabwe lose right to vote: official

People's Daily

       


Thousands of migrants in Zimbabwe have lost the right to vote because of recent changes made to the constitution, local media reported on Tuesday.
Tobaiwa Mudede, the registrar general, announced on Monday the re-introduction of the ban on the right of some migrant workers to vote.
The migrant workers mostly from Malawi, Mozambique, Tanzania and Zambia, who flocked for greener pastures to the then Southern Rhodesia, now Zimbabwe during the colonial era, were enfranchised shortly after independence in 1980.
The move means that migrants who had acquired permanent residents' status have now automatically lost their entitlement to appear on the voters' roll.
"Only citizens of Zimbabwe are entitled to register as voters for any presidential, parliamentary and by-elections or local authorities. Those permanent residents who are already registered on the voters roll no longer have the right to remain on the voters' roll," Mudede said.
He said the latest move was in line with the amendment of "qualifications for members of parliament and voters of the Constitution of Zimbabwe.
The forthcoming elections for the reintroduced Senate penciled for December, also a creation of the Constitution of Zimbabwe Amendment, would be a test case as the affected people would be exempted from voting.
Patrick Chinamasa, justice, legal and parliamentary affairs minister, told journalists recently that the decision to grant the migrant workers civil liberty soon after independence was an "anomaly" that was "posing administrative nightmares."
"An amendment was made to recognize this class of population with respect to civil rights and duties. The constitutional amendment made before 1985 gave migrant workers from Mozambique, Zambia and Malawi who were permanent residents by December 1985 the right to vote in our local authority, parliamentary and later presidential elections. This was, however, an anomaly as the practice internationally is that the right to vote is reserved for citizens of a country," he said.
During the March 2002 presidential elections comfortably won by President Robert Mugabe, thousands of potential voters failed to cast their ballots after being disenfranchised by an amendment that banned dual citizenship.
The new law also stipulated that anyone who failed to renounce his or her foreign citizenship by January 6, 2002 ceased to be Zimbabwean.
Source: Xinhua


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Mugabe objects to Annan's 'controlled' visit

IOL

    September 26 2005 at 11:29AM

Harare - President Robert Mugabe reportedly objects to what he sees as Western attempts to set the agenda for a UN secretary general's visit that appeared in doubt.

"What I didn't like was the fact of other parties coming in, the British, the Americans, trying to set the agenda for your visit," Mugabe told UN chief Kofi Annan, according to a story on Monday in the state-run Zimbabwean newspaper the Herald.

The Herald cited officials who had attended a meeting between Mugabe and Annan on the sidelines of the September 14 UN summit.

The Herald added that Mugabe told Annan he had invited him to visit to correct an "unbalanced and misleading report" UN special envoy Anna Tibaijuka had made about a so-called urban clean-up campaign Mugabe's government had launched.

 
Renewed violence by ruling party militants against white farmers has been reported
After a fact-finding trip, Tibaijuka in July issued what for the United Nations was unusually harsh criticism of a member state. She said Mugabe's government had "unleashed chaos and untold human suffering", leaving about 700 000 people without homes or jobs and affecting a further 2,4 million people.

Annan said days after Tibaijuka's report was issued that he would visit Zimbabwe at Mugabe's invitation, but no date was ever set.

Last week, an Annan spokesperson said discussions to prepare for a visit were continuing, and that Annan would want to go only "if there are clear and defined aims to the visit".

Didymus Mutasa, head of Mugabe's feared secret police, said last week the urban clean-up campaign was being extended to the few hundred whites left cultivating small portions of their former properties, after seizure of 5 000 farms since February 2000.

Renewed violence by ruling party militants against white farmers has been reported in recent weeks.

Experts say Mugabe's seizure of white-owned farms to be distributed to blacks contributed to the collapse of the farm-based economy. UN agencies say four million people in what was once a regional breadbasket face hunger this year.

Mugabe, though, says his country is not in crisis and was quoted in the Herald on Monday as telling Annan that charities and private relief organizations were exploiting UN humanitarian aid "to promote their own agendas of political interference".

Mugabe's most prominent human rights critic, Roman Catholic Archbishop Pius Ncube of Bulawayo, leads those alleging Mugabe has used the state monopoly on importing and distributing food to punish opponents by denying them aid.

A UN humanitarian relief co-ordinator was expected to visit Zimbabwe in November. - Sapa-AP


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Zimbabwe reveals source of IMF payment

Business Report

September 27, 2005

Johannesburg - Reserve Bank of Zimbabwe Governor Dr Gideon Gono has revealed that the $120 million (R765 million) paid by Zimbabwe to the International Monetary Fund (IMF) last month came from banks in New York and London, among others, the state-owned Zimbabwe Herald newspaper reported.

The funds had been sourced from export proceeds, free funds and foreign currency liquidations.

Of the funds, $90 million was paid through the Federal Reserve Bank of New York, with the balance being transacted through Absa Bank of South Africa, the report stated.

The revelation comes in the wake of reports that the IMF intended to verify the source of the funds in response to allegations that they may have been expropriated, it added.

According to the report, Gono gave detailed evidence of the sources of the funds to IMF directors when he went to Washington on the eve of the September 9 executive board meeting to decide on Zimbabwe's fate.

Zimbabwe managed to reduce its arrears with the IMF to $175 million after the payment, a factor that swayed the majority of the IMF's executive directors to vote against its expulsion.

As a result, the country earned a six-month reprieve.

According to the Herald, Gono also made an undertaking to clear the arrears by November next year.

"Clearing our arrears with the IMF is the first step towards normalising a country's relations with the rest of the global financial community and as Zimbabwe, we are in the process of doing just that," the central bank governor said.

Gono also dispelled rumours that Zimbabwe had rejected the much-publicised loan assistance from South Africa, saying negotiations were still going on although they had taken longer than initially expected, the Herald said.

"The assistance from South Africa is in the form of a loan which will have to be repaid at some stage in the future from our mineral, agricultural, tourism and manufacturing exports and, as the central bank, we are looking forward to the conclusion of the negotiations that will replenish our coffers accordingly," the report quoted Gono as saying. - I-Net Bridge


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SA fails to keep out illegal Zimbabweans

SABC
The Beitbridge border post

Illegal Zimbabweans continue to enter South Africa despite measures like new fences on the border.

September 27, 2005, 07:30

South Africa is failing in its attempt to keep Zimbabweans from entering the country illegally. More and more of them cross the border into Limpopo daily in search of jobs and a better life. The fencing to keep illegals out is constantly being damaged.

A six-month visa costs R1 500 - something most Zimbabweans can't afford. An illegal Zimbabwean, who wishes to remain anonymous, says the new fence on the Zimbabwean side is not much of a deterrent.

"Most of the time some of us decide to use foot from Diti right up till here, by foot because of the shortage of money," he says.

The South African Defence Force (SANDF) regularly arrests those trying to enter South Africa illegally. But still the influx continues.

"The situation in Zimbabwe is worsening a lot. There's no food and there's no work, so the people have to come (here)... it's a matter of survival," said Otto Gerner of the SANDF's Operational Commando, which is patrolling the border.


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Africa's Newest Woe: Unaffordable Oil

By Tom Whipple
Republished from Falls Church News-Press
Oil prices hover near $65 barrel. African nations struggling through war, poverty, and disease now have to survive without gasoline and its benefits.

When the historians come to write the history of the 21st Century, they may well record that the African nation of Zimbabwe was the first to succumb to peak oil.

For students of African economies, the current Zimbabwean meltdown comes as no surprise. During the last decade, Zimbabwe ’s dysfunctional government got itself involved in war that drained the treasury and then implemented a land redistribution program that drove out the white farmers. These actions devastated exports and led to runaway inflation. The Mugabe government finally got into so much trouble with the International Monetary Fund for failure to make meaningful reforms and repayments, that it is constantly on the verge of being thrown out of the IMF and in turn, can no longer avail itself of the Fund’s services

When the price of oil started climbing into the $65+ range, official oil imports simply stopped. The country currently does not have the foreign exchange to purchase oil and it seems nobody is willing to extend credit on acceptable terms. Rigged elections and expropriated land have left the country at odds with the usual foreign aid donors so that only humanitarian food shipments are currently arriving in the country.

A few years ago, the government turned much of the oil import business over to the private sector while retaining price caps on retail gasoline. Obviously, when the cost of oil got higher than the permissible sales price, gas stations went dry. This has resulted in a black market where gasoline is selling for ten times the controlled price.

While Zimbabwe ’s multiple economic problems make it an atypical case, it is the first country to run almost completely out of oil. This, in turn, gives us a look at what will happen as the consequences of expensive and scarce oil spreads around the globe.

By last week, nearly all buses and commuter taxis in the capitol, Harare , had stopped running, forcing tens of thousands to walk to work. While there are still a lot of private cars on the road, they are being fueled with $36 a gallon black market gasoline. Municipal services have stopped. There are no trash collections, no ambulances, or operating public works vehicles. Only one fire truck has any fuel left. The police immediately commandeer any fuel they come across. Clean water and electricity are available sporadically. Hospitals are out of supplies and the staff is fleeing. What was once one of the cleanest, most modern cities in Africa is nearly finished.

The long-term effects on the Zimbabwean economy are equally dire. The only sugar refinery is shut due to a lack of coal caused by a lack of fuel for the coal-transporting railroad. Production of tobacco, a major export crop, is already down to 30 percent of pre-land reform levels. It now appears that only about five percent of the normal crop will be planted this year.

Large numbers of Zimbabweans are fleeing the county in the midst of what is clearly an economic death spiral. Famine, mass movements of peoples, and political turmoil cannot be far behind.

In the case of Zimbabwe , all this human misery is not completely attributable to peak oil and unaffordable gasoline; an abysmally incompetent government is playing a major part in the country’s economic demise well in advance of better governed nations. It is, however, representative of what we will see again and again as oil depletion sets in. In the US , we are discussing whether tax cuts are the proper remedy for expensive gasoline. In Africa , people are starting to starve.

Somewhere in the future, peak oil will evolve a test of mankind’s humanity to our less fortunate fellows. Will some sort of oil depletion protocol come to pass allowing at least of modicum of oil to support every country’s essential services? Or will peak oil be marked by survival of the richest? This will soon be seen as the heart of the peak oil moral dilemma.


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Zimbabwe Opposition Debates Senate Poll Participation

VOA News


26 September 2005
Interview with Morgan Tsvangirai
Listen to Interview with Morgan Tsvangirai
Interview with Morgan Tsvangirai
Listen to Interview with Morgan Tsvangirai

Discussions within Zimbabwe’s opposition Movement for Democratic Change to date show a leaning among supporters against taking part in elections for the senate which is being reinstituted under a constitutional amendment rammed through parliament by the ruling ZANU-PF party, MDC President Morgan Tsvangirai said Monday.

Members of the MDC’s youth wing agreed in a weekend meeting that the party should not field candidates in the senate which a senior government official has said are to be held in December, opposition youth affairs chairman Nelson Chamisa told VOA.

MDC youth and others opposed to seeking senate seats say that participation would in effect endorse the ruling ZANU-PF party’s patchwork constitutional changes. Such opposition members also argue that taking part would legitimize what they allege to have been systematic election rigging on the part of the party in government.

But MDC Secretary General Welshman Ncube told the Standard newspaper that the party should enter the ballot because its National Council made a commitment in the runup to the March 31 general election, to participate in future elections.

Mr. Ncube and others of his opinion add that boycotting the senate elections will mean surrendering the democratic space to President Robert Mugabe's ruling party.

Reporter Carole Gombakomba of VOA’s Studio 7 for Zimbabwe asked Mr. Tsvangirai about the ongoing debate inside the country’s main opposition party.

More reports from VOA's Studio 7 for Zimbabwe...


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ZIMBABWE: Parallel fuel market thriving

AlertNet

27 Sep 2005 15:56:31 GMT

Source: IRIN
HARARE, 27 September (IRIN) - Fuel supplies remain critical in Zimbabwe, forcing motorists, business and industry to rely on the parallel market if they want to stay mobile.
The government liberalised the fuel sector last year, allowing individuals and private companies with free funds to source their own petrol/diesel for sale, and in July this year, government announced the sale of fuel for hard foreign currency.
However, informal surveys carried out by IRIN revealed that the scarcity of fuel and foreign currency had negatively impacted on both these attempts to address the crisis.
"The bottom line is that there is no foreign currency and the situation is extremely bad," said Rodrick Kusona, a spokesman for the Petroleum Marketers Association of Zimbabwe (PMAZ).
The Harare city council recently admitted that it was procuring fuel on the parallel market because it could not obtain any from the government-run National Oil Company of Zimbabwe (Noczim), its traditional supplier.
Harare municipality town clerk Nomutsa Chideya told a parliamentary portfolio committee on local government last week that the council had resorted to buying fuel illegally to enable it to respond to emergencies.
"We are not able to attend to any sewerage or water pipe bursts because all our vehicles are grounded. For the sake of the health of the residents, we would rather buy the fuel on the parallel market - we will face the consequences later," he explained.
Chideya said the council used to receive a quota of 30,000 litres of fuel every month, but this had gone down to 10,000 litres before supplies were completely discontinued.
Noczim, the sole procurer of fuel before the liberalisation moves, cited the critical shortage of foreign currency as the main reason for being unable to supply government departments with adequate quantities of fuel.
The parastatal has also told farmers that it would no longer be able allocate fuel to them, throwing preparations for the main farming season - less than a month away - into disarray. Meanwhile, farm produce has been rotting at roadsides because farmers could not get the fuel to transport it to market.
Service stations designated by the Reserve Bank of Zimbabwe to sell fuel in foreign currency have an ample supply, but they are few in number - Harare has only two - where fuel can be bought with coupons obtained from Reserve Bank outlets. A fuel coupon sells for US$1 a litre for both diesel and petrol. The official exchange rate is now pegged at Zim $26,000 to the dollar.
Most service stations, which trade in the local currency, fail to acquire a regular supply of fuel.
But petrol and diesel are readily available on the parallel market.
"It is indeed mysterious why fuel can be found easily on the parallel market. However, there is a possibility that private players are the ones who are fuelling the black market by buying and instead going to official selling points, seek to maximise their profits by selling on the informal market," said Kusano.
"But the practice would be difficult to curb because these people are using their own money," he pointed out.
IRIN discovered that some individuals with access to foreign currency were buying fuel coupons and reselling them on the parallel market at four times the official price.
Noczim staff have also been implicated in the under-the-counter sale of fuel: the state procurer recently acknowledged in a statement that the police had arrested five employees who had "prejudiced the company of millions of dollars worth of petrol and diesel" by allegedly stealing and selling it on the parallel market.
"Such actions not only derail efforts of ensuring that the scarce fuel products are equitably and fairly distributed throughout the country, but also tend to promote the parallel market trade of the commodity," stated Noczim.



IRIN new


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Loans to Zimbabwe 'an insult' - DA

IOL

    September 27 2005 at 09:22AM

By Mariette le Roux

A loan to Zimbabwe would amount to an endorsement of that country's erosion of the rule of law, South Africa's opposition Democratic Alliance said on Tuesday.

"It appears that despite (Zimbabwean President) Robert Mugabe's apparent rejection of any conditions, the South African government is bending over backwards to tailor a package acceptable to Mugabe," it said in a statement.

"This kind of fawning attitude towards a power-hungry dictator is not only unbecoming, but also an insult to the suffering he has imposed upon millions of Zimbabweans."

Assistance likely to come in the form of a loan and grants
The National Treasury earlier said Zimbabwe has not rejected financial assistance from South Africa, and talks on the matter were ongoing.

"We have not broken off discussions," spokesperson Logan Wort said. 

 The fact that Zimbabwe had managed to raise the funds to pay US$120-million (about R768-million) towards its International Monetary Fund (IMF) arrears did not change the fact that it needed financial help, Wort said.

Other assistance required included the immediate alleviation of food shortages and funding for agricultural inputs "so the country can have food next year".

The talks were focusing in large part on Zimbabwean plans for the restructuring of that country's economy. Previous indications were that the assistance was likely to come in the form of a loan and grants.

Zimbabwe reduced its arrears with the IMF to US$175-million
Wort could not say how much money was involved.

Recent estimates of about US$400-million would now in all likelihood exclude the money already paid to the IMF.

There was no indication of when the talks, led for South Africa by Finance Minister Trevor Manuel and SA Reserve Bank (SARB) governor Tito Mboweni, would be concluded.

Neither the SARB nor the Government Communication and Information System (GCIS) was prepared to comment on Tuesday.

The DA said the South African public deserved to know whether money would be loaned to Zimbabwe.

"It is, after all, money belonging to the South African taxpayer which might be sent to a nation where the president and his government only honour agreements in the breach."

DA foreign affairs spokesperson Douglas Gibson said that there had been several contradictory statements from senior government officials, including Manuel and Mboweni, about the talks and the nature of the proposed assistance.

A subsequent "clampdown on the flow of information" meant that South Africans were increasingly reliant on information from Harare.

Recent statements attributed to Zimbabwean central bank governor Gideon Gono begged the question whether South Africa was "determined to press ahead with the loan, despite Zimbabwe's obvious reluctance to accept any conditions", Gibson said.

The Zimbabwean Herald Online quoted Gono on Tuesday as saying talks on assistance from South Africa were ongoing.

"As the central bank, we are looking forward to the conclusion of the negotiations that will replenish our coffers accordingly," he said.

"The assistance from South Africa is in the form of a loan which will have to be repaid at some stage in the future from our mineral, agricultural, tourism and manufacturing exports."

The DA reiterated its opposition to any loan to Zimbabwe, but said strict conditions should be imposed otherwise.

Gono said most of Zimbabwe's payment to the IMF came from banks in New York and London.

The funds had been sourced from export proceeds, free funds and foreign currency liquidations, he said.

Recent reports have said the IMF intended verifying the origin of the money.

Gono gave details of the sources of the funds to IMF directors in Washington on the eve of a September 9 executive board meeting to decide on Zimbabwe's fate.

Of the funds, US$90-million was paid through the Federal Reserve Bank of New York, with the balance being transacted through Absa Bank of South Africa.

Zimbabwe reduced its arrears with the IMF to US$175-million with last month's payment. This swayed the majority of the IMF's executive directors to vote against the country's expulsion and grant it a six-month reprieve.

Gono said it was unfortunate that some quarters felt offended by Zimbabwe's ability to pay part of its arrears from its own resources.

"The fact that we surprised everyone with the payment should not in itself cast doubt on our creativity and ability as the central bank and, indeed, the nation's resolve to take sacrificial measures in the wake of threats to national interests."

He made an undertaking to clear the arrears by November next year. - Sapa


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