http://www.zimonline.co.za/
by Tobias Manyuchi Friday 10 September
2010
HARARE -- Kimberley Process (KP) monitor Abbey Chikane arrived
in Zimbabwe
on Thursday evening on a mission to authorise the export of
diamonds from
the country's controversial Marange mines.
A senior
government official said Chikane, appointed by the KP last November
to
ensure mining of diamonds at Marange complied with the world diamond
industry regulator's standards, is expected to be in Zimbabwe until
Monday.
"We have made provision that he can be here until Monday or
Tuesday," said
the official.
The planned diamond auction will be the
second since July when the KP lifted
a ban it had imposed on exports of the
Marange stones following reports of
gross human rights abuses and other
illegal activities allegedly committed
by soldiers guarding the
mines.
The ban was lifted after President Robert Mugabe's ZANU-PF party
and Prime
Minister Morgan Tsvangirai's MDC put up a united front urging the
West to
drop its opposition to the auctioning of the gemstones at a World
Diamond
Council meeting in July.
Zimbabwe sold its first stockpile of
diamonds from Marange last month, when
it was allowed to auction 900,000
carats by the KP.
The government, which earned US$30 million from the
last sale, has
previously said it was holding more than 5 million carats
from Marange,
where it runs two joint venture mining operations, Mbada
Diamonds and
Canadile Miners, with some private investors.
Meanwhile,
secretary for mines Thankful Musukutwa said in line with
international
standards governing marketing of the precious stones, Zimbabwe
will no
longer be announcing the sale outcome or the number of stones that
will have
gone under the hammer.
"We are the only country in the world that
announces what we have and what
we are going to sale," Musukutwa said.
"Besides, there is also the issue of
security that has to be taken into
account. The security of the monitor has
to be addressed."
Revenue
from diamond sells could go a long way to providing much needed cash
for the
Harare government that has failed to attract meaningful financial
support
from Western governments and international financial institutions.
But
questions still remain on whether all proceeds from the diamond sales
would
be accounted for by the Treasury after Finance Minister Tendai Biti in
July
charged that $30 million from previous diamond sales was missing.
The two
firms mining diamonds at Marange -- Mbada and Canadile -- are joint
ventures
between the government's Zimbabwe Mining Development Corporation
and some
little known South African private companies.
Critics say the diamond
firms are fronting powerful political and military
elites close to Mugabe. -
ZimOnline.
http://www.zimonline.co.za/
by Edward Jones Friday 10 September
2010
HARARE - Zimbabweans need to get used to the reality of
President Robert
Mugabe remaining in office as life president, analysts have
said following
comments by the veteran leader that he still has the stomach
for more
political fight.
In a thinly veiled signal that he could run
for office at the next election,
the 86-year old Mugabe told international
news agency Reuters yesterday that
he was still fit enough to fend off
Western sanctions imposed on him and his
top allies - and to knockout
political opponents.
The octogenarian Mugabe has been in office since
Zimbabwe's independence
from Britain in 1980 and critics say he has clung to
power through vote
rigging and violence against opponents.
"My time
will come, but for now, 'no'. I am still fit enough to fight the
sanctions
and knock out (my opponents)," Mugabe said in the interview.
The
Zimbabwean leader blames former United States President George W. Bush
and
British Prime Minister Tony Blair, his staunchest critics, for slapping
a
financial freeze and travel embargo on members of his ZANU PF
party.
Zimbabwe is due to hold its next elections after a referendum on a
new
constitution, which is expected next year.
Although Mugabe and
his rival Prime Minister Morgan Tsvangirai have
indicated that elections
will be held next year, analysts say the next vote
will likely come in 2012,
when Mugabe will be 88 years.
Analysts say ZANU PF is too fractured to
agree on Mugabe's successor, which
would leave him to represent the former
liberation movement at the
presidential polls unopposed.
"Zimbabweans
need to look seriously and prepare themselves on the prospect
of Mugabe
becoming life president and its clear from his latest remarks that
he is not
about to give up," Eldred Masunungure, a leading political analyst
said.
"His thinking maybe that as a founding leader and given his
age, he may as
well go with it until he dies. After all this is what
happened to his
contemporaries (late vice presidents) Joshua Nkomo and
(Simon) Muzenda."
Mugabe appeared defiant in the interview and mocked
Bush and former British
leader Blair - who said in his new book that he had
considered invading
Zimbabwe - saying he had outlasted them and that he was
not worried about
their successors.
"It is Bush who is out, Blair
out, and the others are persons of no
consequence any more. They are
inheritors of a situation," he said in an
interview in which he called for
improved relations between Zimbabwe and
Western powers.
"These (Bush
and Blair) were the major arch enemies, they are the ones who
brought this
on us."
Mugabe dismissed rumours that he was unwell and that he could
have suffered
a stroke recently after some pictures emerged of him being
helped down some
stairs by aides during a trip to China.
There have
also been reports that the veteran leader was battling with
cancer.
Mugabe expressed surprise to the speculation over his health,
saying this
had become a perennial issue and he hardly paid any serious
attention to it.
Although there have been reports over the last 10 years
on Mugabe's health,
he has no publicly known serious ailment.
"I
don't know how many times I die but nobody has ever talked about my
resurrection," he said at the end of an hour-long interview.
Mugabe
did not say whether he planned to stand in the next presidential
ballot
after his disputed re-election in 2008.
But the suggestion that he has
the energy to stay on in the political boxing
ring and earlier comments -
ZimOnline.
http://www.voanews.com/
The National Constitutional Assembly says it plans to step up
a campaign
against the new constitution when the outreach process ends in
the coming
weeks
Tatenda Gumbo & Patience Rusere | Washington 09
September 2010
The Crisis in Zimbabwe Coalition says it is drafting a
list of grievances on
the ongoing constitution revision and will present a
dossier to the select
committee leading the process in the next few
days.
The organization said Thursday it was concerned the results of the
outreach
may not reflect popular views of members in various communities, as
many
speakers at the outreach meetings appear to have been coached on what
to
say.
Under the Voice up Constitutional campaign, the coalition is
rolling out
civic education to communities on the constitution revision,
calling on
people to participate in large numbers.
Coalition
information officer Maria Mache said the group's intention in
holding its
own meetings is to afford members of the public a chance to
freely voice
their views.
Critics of the constitution revision meanwhile, argue that
the many problems
bedevilling the outreach clearly suggest that the
resulting draft will not
be different from the current
constitution.
National Constitutional Assembly Chairman Lovemore Madhuku
said Zimbabweans
have been forced to express views of favoring political
parties, especially
ZANU-PF.
Madhuku told VOA Studio 7 reporter
Patience Rusere that his group will step
up its "Take Charge" campaign
against the new constitution when the outreach
process ends in a few weeks.
http://www.voanews.com/
The Health
Ministry is working with organizations including the Population
Services
International to circumcise at least 80 percent of males between
the ages of
15 and 49.
Marvellous Mhlanga-Nyahuye | Washington 09 September
2010
HIV/AIDS activists in Zimbabwe are hailing the inclusive
government for
ramping up its male circumcision drive targeting about 1,2
million children
and adults with the aim of lowering their chances of
contracting the virus
that causes the pandemic.
The campaign got a
major boost Wednesday when the United States Agency for
International
Development and the John Snow International jointly donated
US$1,5 million
worth of medical equipment to facilitate 28 000 procedures.
The equipment
was availed through the United States government-run
President's Emergency
Plan for AIDS Relief.
"We are proud to support the Zimbabwe Ministry of
Health in its efforts to
support and promote widespread use of male
circumcision in the fight against
HIV/AIDS," said USAID Health Development
Officer Peter Halpert.
The Health Ministry is working with organizations
including the Population
Services International to circumcise at least 80
percent of males between
the ages of 15 and 49.
Male circumcision has
been proven by the World Health Organization to cut
chances of contracting
HIV by 60 percent.
Government says only 10 percent of Zimbabwe's men are
circumcised.
Coordinator Tapuwanashe Kujinga of the Pan African Treatment
Access
Movement, assisting those infected with the virus said he was pleased
at the
government's efforts, but said more awareness is
needed.
Kujinga told VOA Studio 7 reporter, Marvellous Mhlanga-Nyahuye
that men who
go under the knife should still use protective methods to avoid
getting
infected.
http://www.theindependent.co.zw/
Thursday, 09 September 2010 19:03
FINANCE
minister Tendai Biti says government was divided on how to handle
the
Reserve Bank of Zimbabwe (RBZ) debt, adding he was demanding
accountability
before a settlement plan is executed.
Speaking at the inaugural Independent
Dialogue - an initiative of the
Zimbabwe Independent - on Wednesday, Biti
said some ministers were
opposed to his push for an inquiry into the central
bank debt.
He said the proposed RBZ debt settlement plan had torn cabinet
apart, with
some ministers against efforts to account for how the debt was
accumulated.
Biti said the ministers differed on a modus operandi for
repaying past debts
incurred by the financially beleaguered central
bank.
The RBZ accumulated a massive debt when it engaged in quasi-fiscal
activities before the formation of the coalition government.
Central bank
governor Gideon Gono in July this year said the apex bank
contributed US$1,2
billion of the country's US$6,4 billion external debt and
payment
arrears.
Biti said: "The issue of RBZ debt has been seriously politicised in
cabinet.
What I proposed as Minister of Finance is that let us create a
special
purpose vehicle in respect of which we will transfer all the debts
of the
RBZ. But this special purpose vehicle should be able to take all the
debt
and also to its credit take the quasi-fiscal assets of the bank - the
assets
and so forth."
He said politics had prevailed over reason on the
matter.
"The politicisation has been that there are some who feel that
government
should take over this debt without asking any questions. But more
importantly, this is where there will be a fight and it's a matter of
principle for me that no one can force me to change."
He said government
should follow due process that quantifies the amount of
debt and requires
another "legal instrument" to legitimise the central bank
debt.
"Some
people think that we want to investigate the Reserve Bank. I have got
those
powers in terms of the Reserve Bank Act. If I wanted to do it I would
have
done it last year. My mindset is that let us be forward-looking," he
said.
Gono in April last year published a 20-page newspaper supplement
that showed
the apex bank's controversial engagement in quasi-fiscal
activities on
behalf of government.
The supra-ministerial interventions
which included bailing out perennial
loss-making parastatals, availing
farming equipment to new farmers and
funding political processes such as
elections, resulted in individuals, NGOs
and business losing millions of
United States dollars to the central bank.
Biti said government should
appoint an administrator who can "prove and
approve" claims made by central
bank debtors for government to inject funds
into this vehicle.
The
debtors, Biti said, will be rated accordingly.
"I would reckon that class A
would be your sovereign creditors like Afrexim
Bank, PTA Bank. Class B could
be domestic creditors - people who woke up in
the morning and found their
monies gone. Class C could be risk-takers -
those who took a risk with the
bank and took quasi-fiscal activities, not
having read the provisions of the
Reserve Bank Act," said Biti.
Some of the central bank's debtors are platinum
mining giant Zimplats (US$34
million), the Commercial Farmers Union (US$20
million) and other mining
companies that are yet to benefit from an
underfunded special bond set up in
April to settle the debt.
The central
bank has in recent months been under increasing pressure from
debtors, some
of whom have attached the bank's properties.
Following the relentless pursuit
by debtors of the central bank, President
Robert Mugabe in June invoked a
statutory instrument that made the bank
immune from any court action that
could result in the sale of its assets to
pay off
debtors.
Bernard Mpofu
http://www.theindependent.co.zw/
Thursday, 09 September 2010
18:57
TOP Zanu PF officials in Matabeleland have agreed to share amongst
themselves Reserve Bank of Zimbabwe farming implements stored in Bulawayo
and meant for farmers.
The decision, viewed as asset grabbing, was taken
at a meeting held this
week at Davies Hall, the Zanu PF Bulawayo
headquarters.
Zanu PF Matabeleland provincial coordinating committee members,
including
politburo secretary for education Sikhanyiso Ndlovu, politburo
member
Eunice Sandi, central committee members Godfrey Malaba, Raphael
Baleni,
Dennis Ndlovu and David Ndlovu, a former Bulawayo mayor, met on
Sunday and
decided they should take the equipment.
Ndlovu on Wednesday
confirmed the development, adding that President Robert
Mugabe had ordered
that the equipment should be shared amongst members
before the rainy
season.
"President Mugabe was seriously concerned about the idle implements
and
ordered the RBZ to authorise the release of the implements to those who
deserve them," said Ndlovu, a former Information and Publicity minister.
"But that doesn't mean that the leadership will not benefit," he
said.
Ndlovu said the equipment will be divided among Zanu PF supporters in
Bulawayo, Matabeleland North and Matabeleland South.
The equipment -
hundreds of planters, cultivators, harrows, scotch carts and
ploughs bought
by the central bank under an ill-fated farm mechanisation
programme to
capacitate under-resourced resettled farmers - has been lying
idle at a
National Railways storage yard in Bulawayo.
Party insiders said provincial
chairman Isaac Dakamela has been directed to
engage Bulawayo governor Cain
Mathema to expedite the disposal of the
equipment, sources who attended the
meeting said. Mathema however, said he
was unaware of plans to share the
implements.
"I didn't attend the weekend meeting and Dakamela hasn't come to
see me," he
said.
Efforts to get a comment from the RBZ were unsuccessful
as the central bank
was yet to respond to questions e-mailed on
Wednesday.
The farm implements were supposed to be auctioned in April this
year by a
company that supplied the materials and was not paid by the RBZ,
but Mugabe
invoked the Presidential Powers (Temporary Measures) Act to stop
legal
action aimed at attaching and auctioning the assets. Mugabe invoked
the
Presidential Powers Act to amend the Reserve Bank Act to allow the
central
bank's debts to be turned into state liability.
After Mugabe's
intervention, an auction of RBZ farming implements was
stopped at the
eleventh hour on the instructions of the Deputy Sheriff of
Harare.
The
countrywide farm mechanisation programme, initiated in 2007 as part of
the
now abandoned central bank quasi-fiscal activities, benefited Mugabe's
supporters and security chiefs, some of whom were not farmers. Most of the
equipment distributed under this programme has been lying idle at
underutilised farms. Equipment such as tractors could be seen parked outside
houses in Bulawayo because recipients were only politically connected city
dwellers and not farmers.
Some farmers have complained that the farm
mechanisation programme led by
Gono mostly benefited the Zanu PF elite. Some
of the tractors distributed
during the programme were used as public
transport in rural areas.
A close Mugabe ally, Gono spearheaded the farm
mechanisation programme in
the run- up to the March 2008 elections as Zanu
PF tried to buy votes.
Brian Chitemba
http://www.theindependent.co.zw/
Thursday, 09 September 2010
18:50
Finance minister Tendai Biti has described recent bread price
increases as
unjustified, while the Competition and Tariff Commission (CTC)
has begun
investigations into possible price fixing by bread industry
players.
Bread producers two weeks ago announced at a press conference that
they were
increasing prices in response to the decision by Russia - one of
the world's
biggest exporter of wheat - to limit exports of the cereal to
avert domestic
shortfalls.
The National Bakers Association of Zimbabwe
(NBA) agreed to increase bread
prices by 10%, with the price for a loaf
increasing to between 90 US cents
and US$1, 10, sparking widespread
condemnation.
But government and other players are questioning the producers'
decision to
make uniform increases, arguing that this could result in a
bread cartel
whose influence could spread to other sectors of the economy if
left
unchecked.
"We have traditionally imported wheat from South Africa,
which was not in
any way affected by developments in Russia," Biti told the
Zimbabwe
Independent.
"If millers and bakers cite this scenario for their
price reviews, they are
being dishonest... It is no longer the
hyperinflationary era of 2008 where
you just dream of a new price the next
day. Shareholders would be happy with
a 8%, 10% or 15% increase not over
70%," Biti said, equating millers and
bakers' behaviour to the black market
foreign currency dealings phenomenon
that characterised the economy in
2008.
The CTC, which began investigations last week, said it was taking the
matter
seriously.
"The media has been accusing us of doing nothing when
in actual fact we are
still carrying out investigations as it is a serious
matter. We will take
the approach we did with Zesa (on electricity
tariffs)," said the CTC in a
response to inquiries from the Zimbabwe
Independent. The National Incomes
and Pricing Commission (NIPC), the
country's prices regulator, has said it
has also opened investigations into
possible collusion.
Zimbabwean businesses, market observers say, are quick to
review prices
upwards whenever there is a movement on the international
market, but adopt
a "see no evil, hear no evil standard when the opposite
happens".
The behaviour by bread producers had left the misleading impression
that
bakers and millers in the country had similar production costs with
Russia
and the rest of Europe and North Africa, they said.
"When the
situation stabilises in Russia, people will expect the price to go
down and
this should apply to all like-minded entrepreneurs," said an
economist who
did not want to be named, adding that the move to uniformly
increase bread
prices raised fears about the return of industry cartels.
Recently, the CTC
ordered state power firm Zesa Holdings to desist from
abusing its monopoly
to overcharge consumers after widespread complaints
that Zesa was charging
exorbitantly for an erratic service.
Since 1998 when the Competition Act
(Chapter 14:28) came into effect, the
CTC involvement in regulating
competition and unfair trade practices was
largely restricted to mergers and
takeovers, an area that the ordinary
person had very little interest
in.
Analysts say a standard loaf of bread, priced at US$1, 10, will
effectively
cost US$2 because most retailers do not have coins to use for
change,
forcing consumers to choose between a box of matches, sweets, bubble
gums or
candles readily available at tills in lieu of the 90c change.
A
cost build up study done by the Consumer Council of Zimbabwe last year
showed that bread was supposed to cost between 85 US cents and 95 US cents
but was priced at US$1 to avert the attendant headaches associated with
small denominations in the economy. Analysts say this makes the US$1,10
currently being charged after the price increases unjustifiable.
In
neighbouring South Africa, where the bulk of local players source their
wheat from, a loaf of bread costs between 7-9 rands (an average of 90 US
cents).
In US dollar terms, a standard loaf in Namibia costs 85 US cents,
Botswana
90 US cents and Zambia 89 US cents. In Mozambique, fatal bread
riots only
ended on Wednesday after the government agreed to scrap a 25%
increase that
would have resulted in the price of a bread roll, that
country's bread
staple, going up to 20 US cents.
Consumer Council of
Zimbabwe CEO Rosemary Siyachitema told the Independent
on Tuesday that her
organisation was working with the NIPC on research
regarding the pricing of
bread and other basic commodities prices.
"It (research) is a long procedure.
We are liaising with NIPC, they are the
ones with a statute that allows them
to request invoices and receipts from
retailers and manufacturers,"
Siyachitema said.
Consumers this week said it seems the deep-seated mistrust
between
government, business and consumers has simply been inherited from
the old
political and economic dispensation by the new one.
"We are
seeing the return of super profits. Companies should not rip us off
but the
bread issue shows that producers, who should in fact be competing,
are
colluding to increase prices," said Shuwai Makate, an accounts clerk
with a
Mutare local clothing retail shop.
Biti in his mid-term fiscal policy in July
this year branded sections of the
business community as "economic gangsters"
who cling to the profiteering
mentality of old. The minister said this in
the wake of price increases
which were beginning to filter through the
market and negatively impacting
on the country's efforts to rein in
inflation.
Reserve Bank of Zimbabwe Governor Gideon Gono had earlier waded
into the
argument, saying that "money illusions and psychological hangovers
where
sellers of goods and services are taking time to appreciate the true
value
of hard currencies, and hence escalate prices disproportionately"
would
affect inflationary pressures.
The NBA and the Grain Millers
Association are, however, digging in, telling
the Independent this week that
it was wrong for the NIPC to demand a
reduction in prices without looking at
the global picture.
"They (NIPC) said they are carrying out their
investigations. But it is
common knowledge and there is enough evidence to
prove that wheat prices on
the world market went up," the NBA
said.
Paul Nyakazeya/Benard Mpofu
http://www.theindependent.co.zw/
Thursday, 09 September 2010
18:30
ZIMBABWE has suffered decades of economic mismanagement partly
because of
business leaders’ failure to directly influence government
policies, Finance
minister Tendai Biti has said.
He said resistance by
the past government to open debate silenced many
business leaders whose
views could have positively contributed to sound
economic policies.
He
said this on Wednesday in a wide-ranging discussion at the launch of the
Independent Dialogue, an interactive forum on policy issues affecting the
country.
The Independent Dialogue is an initiative by the Zimbabwe
Independent. The
Independent was partnered by accouning firm Ernst &
Young to host Biti.
Biti said that failure by business leaders to frankly
express views on
government policy had contributed to the country’s
ill-advised economic
measures.
“One of the biggest challenges facing our
country is lack of serious, honest
and brave dialogue,” he said. “We have
suffered from a state that has been
unkind to debate, open discourse and
democracy. So we are now beginning to
crawl out of the shells of safety that
we have taken refuge in the last 30
years.
“I found that because of a
long tradition of a relationship or lack thereof
between government and
business, business has not been very keen to interact
with government in a
win-win relationship because the precedent that has
been set is of a
top-down approach where government is either arresting you
or giving you
instructions.”
Biti said past government policies were vindictive against
local businessmen
and failed to nurture a “black bourgeoisie”. He cited the
closure of
locally-owned financial institutions during the 2004 financial
crisis.
“Part of the illiteracy of the post-Independence state is that it
doesn’t
understand business, but is suspicious of capital, particularly
black
capital,” he said.
Biti told the business leaders who attended the
Independent Dialogue that
government was engaged in talks with an unnamed
construction company to
build a hydro-electric power unit that could ease
current power shortages.
Local industry blames the energy crisis, limited
access to external lines of
credit and high interest rates from the local
banking sector, among other
factors, for the stifled capacity utilisation
estimated to be averaging 40%.
State-owned power utility Zesa is currently
generating 1200MW against a
daily peak demand of 2000MW. The
financially-beleaguered energy company
blames limited funding and vandalism
for its failure to meet demand.
“We are in serious negotiations with a
company over the construction of a
Sino-hydro project,” Biti said.
“It
will cost us about US$310 to US$360 million to put in two generators and
I’m
told by experts that it will increase our electricity generation by 35%.
Governments in Africa are concentrating on power generation, but they do not
have the capacity to invest.”
Governments, Biti said, should establish
infrastructural projects through
Public Private Partnerships (PPP) with
privately-owned companies.
The PPP concept involves a contract between a
public sector authority and a
private party, in which the private party
provides a public service or
project and assumes substantial financial,
technical and operational risk in
the project.
Construction experts say
foreign investors are reluctant to engage
government on PPPs because of an
absence of laws that bind the mega
projects.
Biti told delegates that the
government expected to finalise the signing of
a Bilateral Investment
Promotion and Protection Agreement (Bippa) between
Zimbabwe and Botswana
that had been on hold since 2003. Negotiations on this
agreement had stalled
because of the past government’s disregard for
property rights.
Talks
with Botswana came to a standstill in the midst of the heated period
of the
controversial land reform exercise that started in 2000. The agrarian
reforms saw over 3500 white commercial farmers violently evicted from farms
by government agents and civilian militia loyal to President Robert Mugabe
to make way for landless blacks, mostly politically well-connected
ones.
“We were in Botswana over the weekend,” Biti said. “They are going to
give
us US$70 million but they want the Bippa to be signed. I hope it will
be
signed before the end of September”, Biti said.
The minister used the
occasion to attack business for its appetite to
profiteer despite low
production levels.
“You were making margins of 4000% during the
hyperinflationary era and you
still want to make those margins in a
dollarised environment. It’s not
possible,” he said. “If you make 8-20%, you
have done well and shareholders
should be smiling. If it is anything else,
then you are “burning”
(profiteering) and you shouldn’t be in
business.”
Government tamed the unprecedented inflation last year when it
adopted use
of the US dollar and the South African rand under the
multi-currency
payments system. Biti has in the past threatened business
with statutory
interventions over huge profit margins.
He said it was
“unjustified and unreasonable” for business to effect price
hikes for bread
based on Russia’s cut on exports. Russia, one of the leading
exporters of
the cereal has reduced exports to avoid domestic shortfalls.
This has
resulted in bread prices spiking by 10% in Zimbabwe, whose baking
industry
relies heavily on exports because local production has fallen as
the newly
resettled farmers lack capacity.
On land tenure, Biti accused unnamed
politicians of an “anti-capital
mentality” after opposing his proposed plan
to have securitised 99-year
leases or “proper deeds” for land acquired
during the land reform exercise.
Zanu PF lawmakers openly jeered at Biti’s
proposals during the Mid-Term
Fiscal Policy statement announced in
parliament in July.
Meanwhile, government is yet to carry out a land audit
for farms acquired
during the land reform exercise amid reports that
politicians are throwing
spanners into the land inventory
exercise.
Bernard Mpofu
http://www.theindependent.co.zw/
Thursday, 09 September 2010
17:55
"HE that steals an egg will steal an ox,” goes a Czech saying which
should
ring alarm bells to Zimbabwe as politicians and influential
individuals
convicted of corruption years ago make a comeback after being
cleansed by
the passage of time.
These politicians were kicked out
and rebuked in broad daylight for their
corrupt tendencies. Many of them
have been brought back into public office
and now hold higher posts and
influence than the ones they previously
occupied when they were first
convicted of corruption.
Major scandals which have sucked in politicians
and high ranking
businesspeople include the Willowvale Mazda Motor Industry
(WMMI) in 1989,
the VIP Housing Scheme (1995), and War Victims Compensation
Fund (1997).
Despite conviction or publicly admitting to wrong-doing,
there are
politicians who have literally been recycled and have now been
reappointed
to other bodies, raising questions about the integrity of the
institutions
they now lead.
The Willowvale scandal, where politicians
and politically connected
individuals jumped the queue to buy vehicles at
factory prices which they
then resold at inflated prices on the black
market, claimed the scalps of
senior politicians after president Robert
Mugabe appointed a commission
headed by Supreme Court Judge Wilson Sandura
to investigate.
Politicians who were implicated in the scandal but have
since been cleansed
by the passage of time include Fredrick Shava
(Zimbabwe’s Ambassador to
China), Jacob Mudenda (Zimbabwe Human Rights
Commission) and Reuben
Marumahoko (deputy minister Regional
Integration).
Mudenda, who was the Matabeleland North governor when the
case came to the
fore in 1989, was described by the Sandura Commission as
“an unreliable
witness and therefore (the Commission) had no hesitation in
rejecting his
story.”
Marumahoko was described by the Sandura
commission as “unimpressive as a
witness and it was clear that he was lying
to the commission”. But despite
this reprimand he has continued to grow
politically and is deputy minister
in the coalition
government.
Businesspeople who were also implicated in the investigations
include
current Air Zimbabwe chairman Jonathan Kadzura and banker Enock
Kamushinda
who have both been involved in the running of state enterprises
or
parastatals after the scandal.
Kadzura was accused by the Sandura
Commission of taking advantage of his
closeness to the late Maurice
Nyagumbo, then Political Affairs senior
minister and Secretary for
Administration in Zanu PF to jump the queue and
buy vehicles for resale.
Nyagumbo, who committed suicide as a result of the
findings of the
Commission, wrote to WMMI indicating that the vehicles were
needed by Zanu
PF for party business. Kadzura paid and registered the
vehicles in his name
for resale later.
An example is when Kadzura bought a Toyota Cressida
vehicle for Z$29 705,50
which was Z$5 000 less than the prevailing market
value. He went on to sell
the vehicle to AW Bardwell (a subsidiary of
Lonrho), pocketing Z$65 000
which was more than double the factory buying
price.
Less than two decades later, Kadzura who was convicted and paid a
fine, was
not only chairing Air Zimbabwe board but also sat on the Reserve
Bank of
Zimbabwe’s advisory board.
Kamushinda chaired Zimbabwe
Newspapers (a company 51% owned by the state)
despite being implicated in
the Willovale scandal.
Politicians, senior government officials and
security chiefs who
controversially claimed massive disability payouts from
the War Victims’
Compensation Fund, set up to help those who had
participated in Zimbabwe’s
liberation struggle in 1997, are still holding
top government and military
offices.
University of Zimbabwe lecturer
in the Department of Political and
Administrative Studies John Makumbe says
bringing such people back into
public office taints the institutions they
are supposed to lead.
“By recycling people who have behaved in an
unethical manner, we are saying
Zimbabwe has run out of people of
integrity,” said Makumbe. “People with
shady backgrounds such as Jacob
Mudenda should not be appointed to serious
commissions such as the Zimbabwe
Human Rights Commission. It is unfortunate
that he has been appointed to
such a body despite his history.”
Eldred Masunungure, a political science
professor at the University of
Zimbabwe, said politicians “capitalised” on
the people’s short memory and
thus would appoint wrong-doers to other
posts.
Makumbe said there was need for a new crop of leaders with
integrity but
this was going to be difficult.
“The best that can be
done is to change the government because there is no
one in Zanu PF who has
not been tainted in one way or another,” said
Makumbe. “We need to start
afresh.”
Leonard Makombe
http://www.theindependent.co.zw/
Thursday, 09 September 2010 17:44
Berlin,
Germany - ZIMBABWE has fallen six places down the global economic
competitiveness ratings to beat only three other economies out of 139 ranked
economies, a report says.
The Global Competitiveness Report 2010-2011
issued by the World Economic
Forum (WEF) was released yesterday in
Geneva.
According to the report, although there have been some improvements
in
individual areas, Zimbabwe continues to be among the lowest ranked
countries
included in the GCI survey.
"The assessment of public
institutions, while still weak, has improved
measurably, increasing from
125th last year to 113th this year. Specific
areas of improvement are ethics
and corruption (up from 122nd to 103rd),
government inefficiency (up from
124th to 105th), and the security situation
(up from 85th to 66th)" reads
part of the report.
However, the report says "major concerns (still)
linger with regard to the
protection of property rights and undue
influence."
Despite efforts to improve macroeconomic environment - including
the
dollarization of its economy in early 2009 which brought down inflation
and
interest rates - the situation continues to be bad enough to place
Zimbabwe
towards the tail end out of all countries in this pillar (139th),
notes the
report.
Weaknesses were noted in the health sector (ranked
135th in the health
sub-pillar), low educational enrolment rates, and
official markets that
continue to function with difficulty (particularly
with regard to goods and
labour markets, ranked 130th and 129th,
respectively).
In sub-Saharan Africa, South Africa is ranked highest at
54th, and Mauritius
(55th) features in the top half of the rankings,
followed by second-tier
best regional performers Namibia (74th), Botswana
(76th) and Rwanda (80th).
The report corroborates findings by the World
Bank/International Finance
Corporation (IFC)'s Doing Business Report which
said despite notable
improvement in key indicators, Zimbabwe is still rated
unfavourably for
business. The two indices are the world's most widely
followed gauges of
economic competitiveness.
The 2010 Doing Business
Report ranked Zimbabwe 159 out of the 183 economies
surveyed - one step up
from 2009 when the sample was two countries smaller -
citing persistent
concerns over institutional barriers related to trade and
investment.
The country is among the world's worst economies in terms
of investor
protection and general ease of doing business. The ranks are
important
determinants of the global distribution of Foreign Direct
Investment.
According to the report, Switzerland tops the overall
rankings and the
United States falls two places to fourth position,
overtaken by Sweden (2nd)
and Singapore (3rd), after already ceding the top
place to Switzerland last
year.
The report's competitiveness ranking
is based on the Global Competitiveness
Index (GCI) developed for the WEF by
Sala-i-Martin and introduced in 2004.
The GCI is based on 12 pillars of
competitiveness, providing a comprehensive
picture of the competitiveness
landscape in countries around the world at
all stages of
development.
The pillars are: institutions, infrastructure, macroeconomic
environment,
health and primary education, higher education and training,
goods market
efficiency, labour market efficiency, financial market
development,
technological readiness, market size, business sophistication,
and
innovation.
The rankings are calculated from both publicly
available data and the
Executive Opinion Survey, comprehensive annual
surveys conducted by the
World Economic Forum together with its network of
Partner Institutes
(leading research institutes and business organisations)
in the countries
covered by the study.
This year, over 13 500
business leaders were polled in 139 economies. The
survey is designed to
capture a broad range of factors affecting an economy's
business
climate.
Nqobile Bhebhe
http://www.theindependent.co.zw/
Thursday, 09 September 2010
17:42
YESTERYEAR, the investment case for venturing into commercial
banking was
the prospect of accessing cheaper deposits. Retail deposits come
with low
costs as most transactional accounts earn hardly any
interest.
Although savings accounts pay interest, the rates tend to be
lower than,
say, wholesale deposits. Most of the deposits would be lent to
individuals
and companies requiring funding. The net amount arising from the
margin
between interest paid and received was, then, the top contributor to
operating revenue for banks. The desire to access cheaper retail deposits
largely explains why many banking institutions that started with lower level
licences such as those for finance houses and merchant banks converted them
to commercial ones.
Even now, a commercial banking licence in this
country is still deemed the
ultimate prize in the financial sector. Unlike
in the past, the cheaper
deposits are not seen as a source of net interest
income anymore, because
lending is no longer considered the lifeline of
banking. More revenue has
been coming from non-interest sources like
trading, currency dealing,
revaluations on properties and equities, as well
as fee and commission
income. Before dollarisation, fair value adjustments
on property and equity
investments constituted the bulk of the non-funded
revenue.
Hyperinflation forced banks, through their investment vehicles,
to hold real
assets to preserve value. As inflation worsened, assets
repriced swiftly and
in the end banks would book colossal amounts in the
comprehensive statement
of income as revaluation gains. Paper money, it
could be said, but all the
same it boosted the financial position of the
banks.
Non-interest income still contributes the bigger share of bank
revenue -
69,7% - for the 13 commercial banks that have reported June 2010
interim
results, so far, post dollarisation. The difference though is that
fair
value gains vanished with the end of inflation. Fee and commission
income
now make up the bulk of the non-funded revenue. Using the statistics
on the
12 commercial banks that have published their interims out of the 15
active
banks, fee and commission income was 74,6% of non-interest income.
The three
banks yet to publish results are Interfin, TN and ZABG.
For
the big four banks in terms of assets, namely CBZ, Standard Chartered,
Stanbic and Barclays, fee and commission contributions to non-interest
revenue were 64,5%, 86,9%, 71,7% and 50,4% in that order. For Barclays, the
ratio will be 83,5% if the US$6,5million special support received from the
parent company is removed. The money was used to cover retrenchment costs.
For the second tier banks such as Agribank, FBC, Metropolitan, NMB and ZB
the ratios were 96,7% to 102,5%, implying that fees and commissions
constituted all the non-funded income.
What constitutes fee and
commission income? It is generated from overdrafts,
account service, fund
management, loan arrangement, advisory services,
custodial services and
sales of third party financial products such as
insurance. Whereas
commercial banks are allowed to offer almost all of these
products, the
merchant banks are largely precluded from doing so. Merchant
banks are not
allowed to collect account service charges and overdraft fees
just to name
but two. Incidentally, these are some of the most profitable
sources of
income for commercial banks. Fees are by and large pure profit
and very
lucrative to banks although they tend to be cyclical in nature.
Other
non-interest income primarily bank charges is reasonably defensive. As
long
as a bank has a stable and large deposit base, it can expect to
continue
earning revenue from service charges. June financial results
clearly show
that all commercial banks benefited immensely from fees and
commissions.
The growth of fees and commissions ahead of interest
income appears to
validate the widespread claim that banks could be
overcharging their
customers. Among the believers in this view is the
Reserve Bank, which, in
one of their Monetary Policy Statements demonstrated
in detail that local
banks were charging more than their peers in the
region. Naturally the
banks, through the Bankers' Association of Zimbabwe,
refuted this claim
saying their charges were competitive. All that aside,
charges should be set
at levels which not only make the business of banking
viable but also foster
the confidence of depositors in their banks. High
charges can be a big
disincentive to saving.
There is evidence that
the banking model in this country has changed.
Unfortunately, the
regulations have not been adjusted in line with the
changing times. For
instance, the banking act still segregates financial
institutions into
different licenses yet the business environment has pushed
categories such
as finance and discount houses to extinction. The revenue
and profitability
trends post dollarisation are indicative of the fact that
even the merchant
banks could soon be joining the departed duo.
What is needed is a
universal banking licence allowing every institution to
offer a broader
range of products. There is much talk
about it, but when will it
come?
Own Correspondent
http://www.theindependent.co.zw/
Thursday, 09 September 2010 17:40
THE
Tobacco Industry and Marketing Board (TIMB) will hold mop-up sales this
month after the 2010 tobacco selling season saw a total of 119,8 million kgs
of the golden leaf valued at US$347,8 million going under the
hammer.
The figure was more than double the 58 million kgs sold last
year. This year's
crop was sold at an average price of US$2,90 per kg
compared to last year's
US$2,98.
TIMB however said contractors have
been allowed to sell until all deliveries
were exhausted. "Mop-up sales to
dispose of any tobacco remaining on the
farms will be held on September 28,"
said TIMB.
The rejection rate ended at 8,23% of the total seasonal
offerings.
Tobacco deliveries have been declining since 2000 due to a
combination of
farm invasions, shortage of loans and inputs, bad weather and
inexperienced
farmers.
In 2000 a total of 236 130 million kgs was
produced at a time when the
country was the world's second-largest exporter
after Brazil.
Last year, Zimbabwe was ranked behind Brazil, India, the
US, Argentina and
Tanzania, according to Universal, the world's biggest
tobacco leaf merchant.
In 2001 - a total of 202 540 million kgs was
produced, 2002 - (165 842
million kgs), 2003 - (81 812 million kgs), 2004 -
(69 112 million kgs),
2005 - (73 392 million kg).
In 2006, 55, 5
million kg was sold, in 2007 - (73 500 million kgs), 2008 -
35 000 million
kg and 56 million kgs in 2009.
Last year tobacco was voted the best
paying crop. Government hopes that
internally generated sources of funding
like tobacco, diamonds and other
metal sales will play a critical role in
improving market liquidity and
stabilising interest rates.
Paul
Nyakazeya
http://www.theindependent.co.zw/
Thursday, 09 September 2010 17:39
GOVERNMENT has
turned its capital-raising hopes to a pre-Independence
overdraft facility
with South Africa amid indications that the African
Development Bank (AfDB)
could cut future financial aid to Zimbabwe over
non-payment of debt, Finance
minister Tendai Biti has said.
The treasury chief on Wednesday told
business leaders in the capital during
the inaugural Zimbabwe
Independent-Ernst & Young dialogue that failure by
the state to settle
an estimated US$400 million debt owed to the regional
lender would make the
country ineligible for lines of credit from the Ivory
Coast-headquartered
AfDB.
Biti said Zimbabwe could lose significant aid from the regional
bank which
recently made a commitment to increase lending in the coming five
years.
He, however, said treasury would next Tuesday present a "hybrid"
debt
clearing plan following a growing external debt that was triggered by a
decade-long economic recession charecterised by hyperinflation and foreign
currency shortages.
Government has a US$7 billion debt owed to
international financiers that
include the World Bank, the International
Monetary Fund, the Paris Club and
the AfDB.
"Debt is one of the
things that this economy has to deal with if we are to
go through the
transformative stage of the economy," Biti said. "The danger
about what we
owe to IFC is that they are a precondition to accessing cheap
financial
capital."
He said government could lose "lots" of post global economic crisis
funds
due to the growing debt.
"I was very much disturbed..the
African Development Bank in the last year
alone gave grants and loans of
US$9 billion. In the next five years it is
going to give loans and grants of
US$30 billion and we will not be in the
party because we haven't cleared
(the debt). We just heard of a general
capital increase of 200% at the AfDB
but we are not benefiting", he said.
Biti said government has taken its
begging bowl to neighbouring South Africa
in a desperate effort to source
funding required to resuscitate the economy.
This comes after Western
governments refused to extend lines of credit,
demanding more democratic
reforms from the inclusive government. Zimbabwe
requires US$29,8 billion to
finance requirements in the three years up to
2012.
"There are two
facilities that we are negotiating - one is a line of credit
of R500 million
and the other is the revival of an old overdraft facility of
R2,7 billion
that used to exist between Salisbury (now Harare) and
Pretoria," Biti
said.
He said following the recent ratification of a Bilateral Investment
Promotion and Protection Agreement (Bippa) between Zimbabwe and South Africa
by South Africa's parliament, the former expected more lending from the
latter.
Countries with outstanding obligations to AfDB cannot get
loan facilities
but can get support under the bank's Fragile States Facility
(FSF) geared
towards assisting fragile states to consolidate peace,
stabilise economies
and lay the foundation for sustainable poverty-reduction
and long-term
economic growth.
The FSF support to eligible regional
member countries is via three pillars:
the supplemental support window for
funding infrastructure, state capacity
building and accountability; the
arrears clearance window; and the technical
assistance and capacity building
window.
Bernard Mpofu
http://www.theindependent.co.zw/
Thursday, 09 September 2010 17:36
DIAMOND sales
last month failed to tickle the market despite government
promises that the
controversial alluvial gems would be an Eldorado to the
staggering
economy.
Following official announcements that the stockpiled alluvial
diamonds from
Chiadzwa diamond fields would be auctioned, punters hoped the
stock market
would go on a bull run.
Market watchers expected a
one-off sale of the precious mineral to generate
a whopping US$2,7
billion.
The August 4 auction coincidentally saw daily turnover on the
bourse
spiking to just over US$1 million from US$500 000.
The ZSE
industrial index went up marginally 1,19% during the month to end at
132,48
points from an opening of 130, 92 points. The mining index, however,
traded
in the negative, down 3,34% in the month under review to close at
130,36
points from an opening of 134,87 points.
The market capitalisation for
the ZSE improved slightly to about US$3,63
billion from an estimated US$3,61
billion, translating to a US$2 million
gain for ZSE investors during the
same month.
ZSE daily turnover increased 22% in august to US$34, 87
million from US$28,
65 million transacted in July.
Analysts attributed
the surge in turnover to investor confidence in blue
chip counters such as
Econet, Delta, Innscor and Seedco rather than funds
raised from the diamond
sales.
A fund manager with a listed company said volumes surged in August
"partly"
due to selling pressure from institutional investors currently
liquidating
their stocks to meet retrenchment obligations.
"That most
companies are currently downsizing is now in the public domain.
Notwithstanding the anticipated diamond sales - which many of us thought
would stimulate the market, volumes during this period partly rose after
companies disposed shares to meet their retrenchment obligations," said the
analyst who requested anonymity.
Independent economic analyst John
Robertson, however, said the mid-month
surge in ZSE volumes could have been
speculative.
"I think some investors were only expecting demand for the
shares to
increase in the short-term because some expected companies to
declare
dividends. It's pretty much difficult to prove that the rise in
volumes
resulted from the diamond sales unless one can really follow the
money",
Robertson said.
Finance minister Tendai Biti last week
admitted that the diamond sales had
failed to stimulate economic activity
despite an earlier hullabaloo on their
projected input to the fiscus. He
said proceeds from the sale removed the
Eldorado tag on the controversial
gems.
Government estimated the six million carats stockpile of diamonds
to be
worth US$2,7 billion, raising hope that it would mark an end to the
liquidity crunch on the capital market. That was not the case.
The
state, according to Mines minister Obert Mpofu, received US$30 million
raised from the US$56,4 million auction of one million carats of
gemstones.
Bernard Mpofu
http://www.theindependent.co.zw/
Thursday, 09 September 2010
17:20
AT a mining indaba last year, President Robert Mugabe promised
investors
that Zimbabwe would "respect the sanctity of property
rights".
He smiled and waved goodbye to the men and women whose capital
could lift
the fortunes of the country's mining sector and the economy. All
seemed to
have gone well. To a great extent, Mugabe had calmed apprehensive
investors.
But a few months later, his government gazetted economic
empowerment
regulations compelling foreigners to dispose of controlling
stakes in
businesses valued at US$500 000. Analysts see this as typical of
Mugabe's
government -- saying one thing and doing the exact
opposite.
The regulations have left shares depressed and investors in a
wait and see
mode.
But investors have not entirely lost hope and will
once again meet later
this month at another indaba. For investors, analysts
say, attending such
indabas is one thing while investing is another. This
year, according to a
representative of the indaba's facilitators, Washington
Mehlomakulu, 1 000
delegates will be attending the meeting.
Economist
Brains Muchemwa says general country perception has changed
significantly
but other factors such as elections and the possible return of
the Zimbabwe
dollar could hurt the sector.
He said: "The general perception issues
about Zimbabwe being unstable and
very volatile have definitely improved,
and indeed the fundamentals have
improved, but the key issues regarding the
return of the Zimbabwe dollar,
the elections in the coming few years put a
lot of long-term investments
such as mining into uncomfortable positions
considering that some
fundamental changes in any of these could influence
policy change. And
considering the huge initial capital investments needed
in mining, few
investors would be interested in taking chances, the reason
why there has
been a lot of talk about our many lucrative minerals but very
few tangible
developments have happened on the ground."
Economist
David Mupamhadzi said the major challenge was long-term for
investors while
worries over the return of the Zimbabwe dollar would hurt
the economy more
than the indigenisation regulations.
He said: "If it is to return, what
exchange rate will be used? As long as
such issues are not clear it would be
difficult to convince someone to come
and invest in Zimbabwe."
But
this year's mining indaba will evolve around matchmaking and providing
a
platform for investors to network and share ideas on ways to grow the
local
mining industry.
The conference will run under the theme, "Building a
Sustainable Mining
Industry in Zimbabwe: prospects and challenges."It is
scheduled for
September 15-17.
"The first mining indaba (held last
year) was a good launch pad as it gave
investors a clearer idea of issues,
such as indigenisation, the application
of prospecting and mining rights,
and mining tax. It also served as a
communication medium between investors
and government," said the Mines
ministry.
"The focus this year is on
assisting matchmaking between foreign investors
and local entities,
including building a database of local opportunities
vetted by the ministry
of Mining Development and culminating in optional
site visits to mining
areas on the third day of the Indaba," the ministry
said.
As of
Tuesday a total of 400 foreign investors had confirmed their
participation.
All in all, 1 000 delegates are expected to attend.
Mehlomakulu says
while the inaugural conference focused on reassuring
investors of the sound
investment climate in the country, the second
conference will provide a
platform for investors to network and share ideas
on ways to grow the local
mining industry.
But analysts say the investment climate has not changed
in anyway. If
anything, they say the investment climate has taken a turn for
the worst,
worsened by the empowerment regulations and continued farm
seizures.
"I can confirm that a total of 1000 delegates have so far
confirmed their
participation at the prestigious conference and this year a
lot of attention
will be on minerals such as chrome, coal and diamonds,"
said Mehlomakulu.
Attention will be on investment in the diamond industry
which is anticipated
to account for over 25% of the global diamond
supply.
After the formation of the unity government last year it was
widely believed
that the sector will record positive growth powered by more
investments into
the country.
This was against a background of the
global financial crisis coming to an
end and most investors eager to broaden
horizons into countries with mineral
resources such as Zimbabwe after being
cautious over political instability
before the formation of the unity
government.
However, Finance minister Tendai Biti during his mid-term
fiscal policy
announced in July revised growth projections downwards.
"In
mining, productivity in the sector continues to be hamstrung by erratic
power supply. This has meant that mining houses have not been able to
sustain increased production, even in cases where they have had limited
access to lines of credit in support of recapitalisation," he
said.
Biti said most of the growth in the sector this year was
underpinned by
continued bullish mineral and metal prices.
"As a result,
realised output during the first half of 2010 has prompted
downwards
revision to overall mining sector growth from 40% to 31% in 2010,"
Biti
said.
Analysts said the major deterrent to investment in Zimbabwe's
mining
industry was the indigenisation legislation that is currently being
implemented.
The Indigenisation Act aims to put a 51% share of any
investment valued at
over $500 000 in the hands of Zimbabwe nationals, but
the implementation of
this law has been slow, as political factions debate
its effects.
The Zimbabwe Chamber of Mines is petitioning government to
reduce to 15% the
shareholding that foreign-owned mining companies must cede
to black
Zimbabweans.
The chamber wants mining companies that have
invested heavily in building
schools, roads, clinics and other facilities to
earn empowerment credits for
these investments.
According to the
Ministry of Mines, the second annual Zimbabwe Mining Indaba
will focus more
on the business operating environment in the country, rather
than the
country's political atmosphere.
Paul Nyakazeya
http://www.theindependent.co.zw/
Thursday, 09 September 2010
17:20
What role does the Competition and Tariff Commission (CTC) play in
the
economy? Has the CTC scored any success since inception? Our reporter
Leonard Makombe (LM) talked to CTC director, Alexander Kububa (AK), on these
issues.
LM: What is the mandate of the Competition and Tariff
Commission and which
Act of Parliament or any other piece of legislation
operationalises this
body?
AK: The Competition and Tariff Commission
is a statutory body established
under the Competition Act [Chapter 14:28] to
regulate competition and to
give advisory opinions on trade tariffs
matters. It is a product of the
merger in 2001 of the former Industry and
Trade Competition Commission
(ITCC), which had come into operation in 1998
under the Competition Act,
1996 (No7 of 1996), and the Tariff Commission
(TC), which also came into
operation in 1998 under the Tariff Commission Act
[Chapter 14:29].
LM: Where does CTC get its funding? Is it enough? What
other avenues are you
looking at for funding?
AK: The Commission is a
non-commercial statutory body that gives regulatory
and advisory services on
government policies. As such, its main source of
funding is government.
This source of funding is not adequate for the full
undertaking of the
commission’s operations given the financial constraints
being faced by the
government. The Commission however has other sources of
funding, which are
specific to operations. These are merger notification
fees, which are
specifically for the defrayment of the costs incurred in
examining mergers
and acquisitions, and funds raised from the trade
development surcharge,
which are used in the promotion of the export trade
of Zimbabwe and which it
shares with Zimtrade. The Commission can also give
advisory opinions on
specialised competition and trade policy topics, for
which it charges fees,
and distributes reports on its investigations and
studies for a
fee.
LM: What would you say have been the successes of the
CTC?
AK: The commission has been extremely busy since the effective
commencement
of its operations in 1998, and has recorded numerous successes
in both its
competition and trade tariffs operations. In the area of
competition, the
Commission has handled over 1 000 competition cases, of
which about 53%
involved restrictive and unfair business practices and 47%
were mergers and
acquisitions. Common restrictive and unfair business
practices investigated
have included anti-competitive agreements of both
horizontal and vertical
nature (ie, collusive and cartel-like behaviour,
such as price fixing and
market-sharing arrangements, and bid-rigging,
exclusive dealing, and resale
price maintenance), and abuse of dominant or
monopoly positions (ie,
excessive pricing, discriminatory distribution, tied
and conditional
trading, undue refusal to distribute commodities or
services, and predatory
pricing. Some consumer welfare abuses, such as
misleading advertising and
distribution of commodities or services above
advertised prices, have also
been investigated.
LM: Who should bring
to the attention of CTC an anomaly that could be a
violation of the
Competition Act? Is it an individual like me or
institutions?
AK:
Anyone, whether a corporate or human can bring any competition or trade
tariff complaint, or any other violations of the Competition Act, to the
attention of the Commission for investigation. However even though most of
the Commission’s investigations are complaint-driven, the Commission can
initiate such investigations on its own.
LM: Why does it take long for
CTC to complete investigations?
AK: The Commission’s investigations into
competition and tariff cases have
got to be meticulous since the outcomes
have serious implications on the
affected enterprises and the economy as a
whole. For example, in the case
of a typical competition investigation, all
the affected stakeholders have
to be consulted and extensive economic
analysis has to be undertaken on the
competitive effects of the practices
under investigation. It is therefore
not uncommon worldwide for an
investigation into a complicated restrictive
business practice like price
fixing or market sharing to take up to two
years. Even though the Zimbabwean
competition legislation does not give
specific deadlines on the completion
of competition cases, except that the
cases should be looked into as
expeditiously as possible, the Commission has
administratively given itself
up to three months to examine mergers and
acquisitions. Some mergers have
been examined within a month. Time spent
on investigating cases involving
restrictive and unfair business practices
has ranged from two months to
eight months. The times spent by the
Commission in handling competition
cases are amongst the shortest in the
region.
LM: Is it fair to say
the current economic environment has had a negative
bearing on competition,
for example, you walk into most of the shops and the
products, bread for
example, is either a dollar or dollar for two no matter
which
shop?
AK: Any adverse economic environment drives enterprises to engage
in
restrictive and unfair business practices as they strive to maintain
market
share and position in the shrunk economy. In some cases, competitors
agree
not to compete against each other in order to act as a collective
monopoly
and earn monopoly profits. This however does not exempt them from
the
application of competition law. The current situation in Zimbabwe is
not an
exception, as evidenced by the increased number of competition cases
brought
to the attention of the Commission for investigation.
LM: How
do you differentiate between a proper business pricing regime and a
cartel?
I have here the problem of say service providers who charge a
uniform price
for a service despite issues like competitive advantage or
efficiency. To
further elaborate this, why is it that there is a standard
charge for a data
line no matter which provider you use?
AK: A competitive pricing regime
is when competing firms independently
determine the prices of their goods
and services on the basis of their
individual input costs and productive
efficiencies. On the other hand, a
cartelised pricing regime is when
competitors sit down and agree on uniform
prices to be charged to their
customers. In competition terms, this is
called price fixing, and is one of
the most serious anti-competitive
practices that are per se prohibited in
most countries, ie, are prohibited
without considering any defence
arguments. In other jurisdictions, however,
price fixing arrangements are
considered using the Rule of Reason approach,
ie, where an attempt is made
to evaluate the efficiency of pro-competitive
features of a restrictive
business practice against its anti-competitive
effects in order to decide
whether or not the practice should be prohibited.
In Zimbabwe, while the
competition law prohibits cartel-like practices like
price fixing
arrangements, such practices can be allowed if they are “bona
fide intended
solely to improve standards of quality or service in regard to
the
production or distribution of the commodity or service concerned”.
Any
complaint or allegations of price fixing arrangements can therefore be
referred to the Commission for investigation in accordance with the
provisions of the Competition Act.
LM: What right do I have as an
individual to bring to your attention what I
feel is an anomally, say I pay
for a service but do not get the expected
standard despite an assurance by
the provider that I will get value for
money?
AK: Any individual has
the right to bring to the Commission’s attention any
anomaly or restrictive
practice that is prohibited under the Competition
Act. The term
‘restrictive practice’ is defined in terms of the Act. In
addition, certain
consumer welfare abuses are prohibited under the Act as
unfair business
practices. These are: (i) misleading advertising; (ii)
false bargains; and
(iii) distribution of commodities or services above
advertised price. While
the selling and distribution of sub-standard goods
is an unfair consumer
practice, it is not a restrictive business practice
that is specifically
prohibited under the Competition Act since it does not
materially restrict
competition between competing firms.
LM: Many people say you are a
toothless bulldog. What capacity do you have
to enforce your findings or
orders?
AK: The Competition Act gives the Commission the necessary teeth
to enforce
its orders and decisions. The Act provides that for enforcement
purposes,
the Commission’s orders can be registered with, and recorded as a
civil
judgment of, the High Court of Zimbabwe.
LM: Last month saw CTC
asking Central African Gold and Newdawn to write a
report on a deal where
the latter acquired the former. What has been the
finding so far?
AK:
The proposed acquisition of Central African Gold by New Dawn Mining
Corporation was notified to the Commission for the examination of the
transaction’s competitive effects last month. The examination is currently
at an advanced stakeholder consultations stage
LM: Do you think the
indigenisation regulations would see more
investigations?
AK: There
are no direct relationships between the Indigenisation Regulations
and the
incidence of anti-competitive restrictive business practices, or
unfair
trade practices that are investigated by the commission. The
regulations
should therefore not affect the number of cases referred to the
commission
for investigation.
LM: What role if any do you foresee CTC playing during
the implementation of
the Indigenisation regulations?
AK: The
commission however does play a role in the implementation of the
Indigenisation regulations, as it does in the implementation of all other
economic policies of the country. Specifically in the case of the
Indigenisation Regulations, the relevant enabling Act provides that all
mergers notified to the Commission for examination must meet indigenisation
requirements for approval.
http://www.theindependent.co.zw/
Thursday, 09 September 2010
17:56
SOUTH Africa's decision to deport Zimbabweans who fail to
regularise their
stay in that country before the end of the year will hit
the poor hardest,
analysts and exiles say.
The South African Home
Affairs department said legal documents would be
given to those who could
show that they have been in that country before May
31, 2010 and can prove
that they are gainfully employed, are bona fide
students or are in a
legitimate business for which they are registered to
pay tax.
Over three
million Zimbabweans, a quarter of the population, fled economic
and
political turmoil since 2000 and have settled in neighbouring nations
and
overseas countries such as the United Kingdom.
Groups such as the Solidarity
Peace Trust estimate that half of these people
are in South Africa, most of
them unskilled and likely to become victims of
South Africa's new
measures.
Analysts say economic considerations could be behind South Africa's
decision
to flush out Zimbabweans. Unemployment worries have heightened as
jobs
created before the soccer World Cup vanish.
South Africa created
over 130 000 temporary jobs in the run-up to the 2010
Fifa World Cup which
ended in July. Zimbabwe's economy, on the other hand,
has failed to grow
and would be unable to accommodate a sudden flood on
unskilled labour,
analysts say.
A special dispensation allowing Zimbabweans to live and work in
South Africa
without documentation introduced in April last year ends in
December and
immigrants have until then to regularise their
stay.
Thousands of Zimbabweans doing menial jobs such as farm workers are
unlikely
to meet this deadline because of ignorance and the nature of their
work,
groups working with immigrants in South Africa say.
The South
African government this week sought to downplay the impact of its
new policy
on Zimbabwean immigrants by saying no mass deportations would
take place
because Zimbabweans living in that country without documentation
would be
allowed to regularise their stay by December 31. Those who fail to
do so
during this period will however be deported from January next year.
Civic
organisations have tried to convince South Africa's Home Affairs
department
that the planned deportations are ill-timed as there is slow
economic growth
and lack of broad political reforms in Zimbabwe.
Pretoria-based Zimbabwe
Exiles Forum (ZEF) met Home Affairs' deputy director
(immigration) Jackie
Mackay and chief director in the ministry, Mudiri
Mathews, this week where
the officials confirmed that deportations will
start after the December 31
deadline.
Gabriel Shumba, ZEF executive director, told the Zimbabwe
Independent after
the meeting: "We expressed concern over a number of
issues, including the
fact that the insinuation given is that the situation
in Zimbabwe has
stabilised. We were also concerned that there is very little
time, that is
three months, given to Zimbabweans to ensure that they obtain
a Zimbabwean
passport and all the other relevant documents before they can
legalise their
stay."
He criticised the South African government for
setting a deadline before
putting in place the infrastructure to ensure
Illegal Zimbabweans regularise
their stay within the set timeframe.
"We
are concerned that this decision appears to pander to political
constituencies regardless of the xenophobia that it can trigger," said
Shumba. "There is therefore need to carry out an extensive education
campaign for Zimbabweans, employers and the South African public in
general," said Shumba, whose organisation is lobbying the South African
government to reconsider the decision and consult more widely.
He
described the South African cabinet decision as "callous and arbitrary".
The
deportations, analysts say, will give a wrong impression about the
economic
conditions in Zimbabwe where the situation is still unstable
despite the
formation of the coalition government in February last year.
Crisis in
Zimbabwe Coalition (South Africa office) regional coordinator Dewa
Mavhinga
argued that even if there was sincerity in the regularisation
procedure, the
process could largely depend on the whims of unscrupulous
employers.
"We
fear that a resumption of deportations may fuel xenophobic sentiments
and
lead to renewed attacks," he said.
"The fact that today under a coalition
government Zimbabweans continue to
flock to South Africa in their thousands
daily is evidence enough that the
appearance of change is but a mirage. We
ask that whatever new policy
measures are tried should be tried in the
context of a moratorium on
deportations of Zimbabweans, at least until
Zimbabwe holds a credible, free
and fair election whose outcome is
acceptable to the people of Zimbabwe and
to the international
community."
Movement for Democratic Change SA (MDC SA) chairperson Austin
Moyo told
reporters in Johannesburg this week that the ANC-led government
should be
compassionate and considerate.
Central Methodist Church Bishop
Paul Verryn, who has accommodated thousands
of Zimbabwean migrants at his
church in central Johannesburg, said Zimbabwe
could not take care of its
migrants.
"But for the vulnerable in the country the situation is still
desperate," he
said.
Verryn warned there could be fresh xenophobic
attacks as a result of the
special dispensation's
cancellation.
Zimbabweans in South Africa have faced persistent threats of
violence and in
2008 over 60 people died and 150 000 were displaced in a
wave of xenophobic
attacks that swept across South Africa.
Following the
formation of the coalition government between Zanu PF's
President Robert
Mugabe and MDC-T's Prime Minister Morgan Tsvangirai, the
economy has slowly
recovered by 4,7% while capacity utilisation jumped from
10% to 32% last
year, according to the Business Council of Zimbabwe.
Economist Witness
Chinyama said the job market was poor and could not absorb
hundreds of
thousands of vulnerable Zimbabweans from South Africa.
The unskilled
Zimbabweans, he said, could be absorbed in the informal market
and help
rebuild the economy.
"Manufacturing capacity utilisation is still low and the
job market is not
good. It will be difficult for the economy to absorb the
huge numbers of
those based in South Africa and elsewhere," said
Chinyama.
Brian Chitemba
http://www.theindependent.co.zw/
Thursday, 09 September 2010
17:54
CAN you believe the foolishness of Zanu PF leaders who want to
interfere
with a successful monetary system and create havoc by adding to it
a
currency that is not used locally or
internationally?
Vice-President Joice Mujuru, who is not known for
her grasp of economic
issues, was speaking to party delegates from
Mashonaland West last weekend.
She said it would be logical to include the
Chinese yuan in Zimbabwe’s
currency pool given Zimbabwe’s “Look East” policy
and growing trade ties.
This would ultimately see the country having a
“sovereign national currency”,
she said.
“If it ain’t broke don’t fix
it,” the expression goes. Zanu PF has a habit
of grabbing hold of anything
that works and making a complete mess of it.
The disaster surrounding
commercial agriculture is a prime example. The
state is still busy
pretending the land reform policy has been a success
when all the evidence
suggests it has witnessed a collapse in output.
A recent FAO/WFP report
states that “nationally maize yields decreased to
0,75 tonnes/hectare from
0,82 tonnes/hectare recorded last season.
“Yields decreased in all farming
sectors with the exception of commercial
farms which recorded an increase of
over 6% over the previous season,” the
report said.
The “Look East”
policy may be a bright idea but Zimbabwe’s trade with China
is a fraction of
China’s trade with Europe or the US.
This isn’t the only example of
looking east that has proved illusory. Does
anybody remember the flirtation
with Malaysia and the president’s
south/south exhortations regarding Hwange?
What happened to that scheme?
The adoption of the US dollar last year saved
Zimbabwe’s economy just as it
was on the ropes. It provided stability and
predictability. But immediately
we heard Mugabe suggesting a return to the
Zimdollar — something that would
have proved disastrous.
Now Mujuru is
saying much the same thing.
The Chinese are showing no inclination to depart
from the greenback in terms
of their own currency holdings. Indeed, their
trade with the US is booming.
Why should Zimbabwe vitiate a system that has
served the country so well on
the grounds of a spurious policy that has so
far seen limited returns?
Zanu PF likes to tell us of China’s success story.
But it omits to mention
that success operates on a firm basis of trade and
investment with the
developed world. You never hear specious economic
pronouncements of the Zanu
PF variety in China itself.
Mujuru’s remarks
were greeted with “wild applause” by the party faithful, we
are told.
We
don’t doubt it. Anything ruinous to the economy is greeted with “wild
applause” by those losers!
By the way, what happened to Kondozi Estate
and to the Mazoe plantations?
Surely crude grabs of that sort should have
some dividend to show? Instead
ministers just made off with the hardware.
Now they are contemplating a
return to the currency they undermined.
The
last thing Zimbabwe needs right now is a “sovereign national currency”
administered by Zanu PF. What it needs is stability.
We were amused
to note that Zanu PF columnists are referring to the MDC’s
2008 election
victory as a “fluke”.
It’s amazing isn’t it that when even the party’s top
brass acknowledges the
extent of their losses the Munhumutapa mind-control
department is in denial.
It was all a plot you see!
Can its managers not
see the pattern of events in 2000, 2002, and 2008 when
the post-liberation
aristocracy went down to defeat like the French chivalry
at Agincourt.
We
cannot forget how ZBC attributed Zanu PF’s referendum defeat in 2000 to
whites exercising the vote. It would have been funny were it not so
ridiculous.
Any examination of the electoral outcomes for the period
2000-2008 will show
Zanu PF as a party in decline. In 2000 the MDC won
unambiguously in the
urban centres. In 2008 it penetrated many rural
centres. The prospects of
Zanu PF winning back any of these seats is between
unlikely and zero.
Who would vote for a party that inflicted punishing
inflation on the
country; that blamed every facet of misrule on “sanctions”;
that abducted
and beat its opponents?
Zanu PF may once have been a party
of liberation, but now without any shadow
of doubt it is a party of
failure.
That’s a shame because the MDC will need an effective opposition and
it
doesn’t look like getting one!
The Business Herald carried a
picture on Tuesday of Tourism minister Walter
Mzembi and Environment
minister Francis Nhema who, we are told, have formed
a partnership to “raise
the profile of the country that has suffered from
negative perception from
the West”.
Last week we were told Bulawayo artist Owen Maseko had been
prosecuted
because the authorities took exception to his depiction of the
Gukurahundi
atrocities. He was charged with “propagating falsehoods” under
the Criminal
Law (Codification and Reform) Act.
In other words, in the
official mind, Gukurahundi didn’t really happen or if
it did we mustn’t
mention it.
Earlier this year a collection of photographs had to be removed
from the
Gallery Delta in similar circumstances.
Then the Herald talks
about “negative perceptions” by the West.
What sort of “perceptions” does it
think this repressive behaviour invites —
not just abroad but within
Zimbabwe itself? Freedom of expression is
enshrined in Zimbabwe’s
constitution. But it is not upheld by the country’s
rulers.
The
Nathaniel Manheru columnist in the Herald has been on the attack again.
And
we are his main target. He had this to say on Saturday: “…The Zimbabwe
Independent takes the colour and worldview of its Rhodesian owners and it is
important that this insidious yet assiduous reissuance of the Rhodesian
ethos be exposed for all to see.”
What needs exposing for all to see is
Manheru’s mendacity. Everybody in the
media knows that Trevor Ncube owns
this newspaper. But Manheru deliberately
lies about its ownership to express
manufactured indignation over our
exposure of the fate of members of the
once violent land-reform youth corps
who now wallow in poverty on the farms
they helped to seize.
It is of course perfectly legitimate for a newspaper to
ask what happened to
those the then ruling party claimed to be liberating
nearly a decade ago.
Manheru says he doesn’t object to anyone defending white
farmers “but let it
be done cleverly and without taking advantage of
unsuspecting poor people”.
And who cleverly used “unsuspecting poor people”
to fulfil their partisan
cause 10 years ago?
Can you imagine a senior
civil servant dictating to a newspaper how “clever”
it has to be in framing
its stories?
Meanwhile Manheru could demonstrate a measure of “cleverness” in
limiting
his turgid prose to a readable length on a Saturday so we don’t
fall asleep
at the breakfast table!
Thanks to Nelson Chamisa and
Pishai Muchauraya for their swift intervention.
They quickly disputed
Theresa Makone’s claims telling the Zimbabwe
Independent police were now
better behaved.
American music star Akon witnessed first-hand the rogue
behaviour of our
police.
Akon, who performed in front of a 30 000-plus
crowd at the National Sports
Stadium on Saturday night reminded the police
to respect human rights.
Reports elsewhere suggest the music icon insisted
that he did not want them
as part of his security team.
Akon made it
clear at the show that he was not happy with the conduct of the
police
officers who were beating up people during his live performance.
When he got
on stage Akon told the police to stop assaulting his fans.
“Police, stop
swinging those batons onto my fans,” Akon repeatedly said.
“I want to meet
with my fans so move the barricades forward and let them
come closer.”
He
later threw himself into the crowd straight off the stage and also got
into
a glass balloon and conducted a crowd scanning exercise, a move which
has
made his shows around the world popular.
Thanks Akon for that reminder. Let’s
hope Makone, who has been making
misleading public remarks, also heard
you.
A Zimbabwean based in the Netherlands, Hatina Chitiyo, fell victim to
the
police heavy handedness.
“I screamed for Akon which I suppose is
normal for anyone upon seeing a
musician of his calibre,” Chitiyo said. “I
was beaten by a police officer
and tried to run away but had to come back to
help my sister who was also
being beaten by the policeman.”
Any “negative
perceptions” arising from this episode cannot be ascribed to
Tony Blair who
the state media appear to be still obsessed with.
What annoys them so much,
we suspect, is that he presided over a successful
economy.
And how are
they going to report Fidel’s welcome admonishment of Iran’s
presidential
bigot, Mahmoud Ahmadinejad?
Finally, Muckraker was intrigued to read a
news report of March 15 2001
headed “Fake bishop accused of arms
smuggling”. Police in Ecuador said they
had arrested a man posing
as an
Anglican bishop on charges of arms smuggling. All very curious!
http://www.theindependent.co.zw/
Thursday, 09 September 2010 17:53
A TRUTH
and Reconciliation Commission (TRC) — however imperfect its
structure and
process — was a mechanism for peace (in South Africa).
I felt sure that,
somehow, the TRC could prevent South Africa from
disintegrating into an
endless cycle of revenge and violence.
The media played a central role in
helping South Africa make sense of this
complex, confusing
journey.
Cartoonist Zapiro summed it up with his usual incisive wit. He
depicted
Archbishop Desmond Tutu poised on the edge of a precipice called
“Truth”.
Behind Tutu: a motley bunch of journalists, along with a
perpetrator and a
victim in a wheelchair.
Across the gaping chasm there
was another precipice — this time called
“Reconciliation”. Tutu clutched a
useless map, and utters one word: “Oops!”
Anyone who has lived through a
period of personal or political transition
knows all about the “oops!”
word.
“The past is never dead,” wrote the American novelist, William
Faulkener.
“It’s not even past.”
What then is transitional justice? I
like the way Judge Richard Goldstone
describes it: “Transitional justice,”
he says, “is ultimately about nations
torn apart by gross violations of
human rights, learning to live together
within a context of dignity, human
rights and social justice.”
Implicit in Goldstone’s definition is
healing; a sense of moving forward
into a brighter future, and—above all —
the recognition that such a complex
process cannot be fast-forwarded. It
takes time.
Transitional justice, therefore, is about the past, the
present and the
future. There are no fixed models. There can’t be, because
every nation’s
history is unique.
But we can identify five common
foundation stones. These are:
Prosecutions: of perpetrators of human rights
abuses;
Truth-telling: uncovering the extent and nature of past abuses
through
initiatives such as truth commissions;
Reparations: for victims
of human rights violations;
Memorialisation: finding ways to preserve the
memory of the past, through
museums or memorials. And
finally:
Institutional reform: of sectors that were used as tools of
repression,
especially the security sector: the police, the military. Reform
of the
judiciary, of the electoral system, of education. and, of course:
reform of
the media.
Each of these areas can generate a wealth of
stories and— for the media —
many challenges.
Firstly, when we write
transitional justice stories, context and follow-up
are all-important. It’s
not enough to do one isolated article, or to
ghettoise transitional justice
issues.
So, a transitional justice process offers us the chance to
reflect, as
media, on our past. Rwanda is a much-quoted example. Especially
Radio Milles
Collines, which played a direct and horrifying role in the
genocide. “Kill
the cockroaches!” The radio urged its listeners. And
neighbour turned
against neighbour. Those chilling words still haunt us: a
reminder of the
power of media, and its potential to incite hatred, or to
nurture peace.
It’s not always so clear-cut, of
course.
Transitional justice reporting also requires in-depth
investigation: the
ability and the resources to excavate through layers of
complex, contested
versions of the truth.
But transitional justice
isn’t only about naming and shaming. It’s also
about healing. About
conversations and dialogue, finding common ground, when
society has been
fractured. For journalists, this might mean finding ways to
challenge
polarisation within the media sector.
How did the South African media
cover the TRC process from 1996-98?
As part of the TRC process, there was
a three-day Special Hearing on the
role of the media during the
apartheid-era. Black journalists spoke angrily
and eloquently about the
racism and abuses they experienced — not just in
state-controlled media
organisations but, to the shocked surprise of many —
in the newsrooms of
so-called “liberal” papers.
The Special Hearing also highlighted the role
of state agents: for instance,
the spies who operated under the guise of
journalists; and the propaganda
specialists at the SABC. No surprise there.
We knew they existed. What was
horrifying, however, was the extent and
sophistication of their
operations—especially in the area of disinformation.
Never, never again, we
told ourselves.
The TRC aimed to promote national
healing, and nation-building. How far,
therefore, could media report
critically on the TRC process without
undermining it? Without playing into
the hands of those who wanted the TRC
to fail, in order to protect their own
skins?
Journalist Stephen Laufer summed up the dilemma: “Our job is to
question, to
reflect the realities of what is going on, to attempt to show
that truth is
multi-faceted. Sometimes truth becomes particularly unpleasant
when the
victims have also been perpetrators –– or the perpetrators are in
some
fashion, victims.”
The journalists who reported on the TRC, day
in and day out, paid a heavy
price: emotionally, mentally and
physically.
They absorbed the story, and it invaded their dreams and their
nightmares.
SABC producer, and veteran journalist Max du Preez, laughed when
he was
first offered psychological counselling. “A journalist getting
therapy is
like a Springbok rugby prop using moisturiser”, he joked. But
four weeks
into the TRC hearings, he noticed that members of his Special
Report team
were, as he put it, “cracking up”. It turned out, he wrote
later, that “the
rugby prop really did need moisturiser”.
There is
much more to tell about the role media played in South Africa’s TRC
process.
How radio, TV and print helped to give the proceedings a human
face; helped
to expose the extent of apartheid-era atrocities — especially
for those who
chose not to attend the actual hearings.
A word of advice from Anneliese
Burgess: an SABC television journalist who
was part of the TRC Special
Report team.
“My first bit of advice to anyone covering a TRC would be to use
what was
coming out of the hearing as the backbone of a story,” she says.
“The
challenge would be to go further.”
There are some key questions
that need to be considered before embarking on
any transitional justice
journey. The media can stimulate debate about these
issues, so that people
can decide what they want — and what they don’t
want — from the process,
long before it starts.
Of all the different kinds of media, there is one
that is crucial in this
regard. Radio. Why? Because radio can provide space
for dialogue. A space
where people can talk and listen to each other. A
channel to contest the ten
powerful elites who make decisions in the name of
those who are not so
powerful.
But this can’t happen unless the
airwaves are free. Unless there is a strong
culture of community radio:
radio by the people, for the people, from the
people. Community radio can
host talk shows in a mix of languages. It can
create radio dramas, or use
traditional story-telling, poetry and music to
open up issues around
justice, reconciliation and healing. Radio can allow
people to speak freely,
because it preserves their privacy and safety.
Of course, it can be risky
to “open up the airwaves”: you need to make sure
that radio stations don’t
become tools of particular interest groups; or
vehicles for propaganda. And
that requires careful regulation, by
independent bodies that everyone can
trust.
In South Africa, at the time of the TRC, there was already a
vibrant
community radio sector. With enough support, community radio could
have done
so much to develop a stronger sense of ownership in the TRC
process — for
all South Africans.
In the end, though, there can be no
cookie-cutter model for transitional
justice. Every country has to find its
own way. As they say in West Africa:
“Paths are made by
walking”.
Meanwhile — and in closing — a note of sanity from the
not-so-distant past.
“South Africa should put the freedom of its press
and media at the top of
its priorities as a democracy. None of our
irritations with the perceived
inadequacies of the media should ever allow
us to suggest even faintly that
the independence of the press could be
compromised or coerced. A bad free
press is preferable to a technically
good, subservient press,” Nelson
Mandela said at the 10th anniversary of the
Institute for the Advancement of
Journalism in Johannesburg in
2002.
Lewin is a veteran South African journalist who served for two
years on the
country’s Truth and Reconciliation Commission as a member of
the Human
Rights Violations Committee. This article is an edited version of
his speech
to senior journalists in Harare on Monday.
By Hugh Lewin
http://www.theindependent.co.zw/
Thursday, 09 September 2010
17:52
LAST week a spokesman of the South African government, Themba
Maseko,
advised that their cabinet had decided that the special dispensation
accorded Zimbabweans, enabling residence and employment in South Africa
without compliance to normal immigration processes would cease with effect
from the end of December 2010. He said that any Zimbabwean without a valid
temporary or permanent residence permit or work permit will be deported back
to Zimbabwe.
The International Organisation of Migration estimates that
there could be as
many as 3,5 million Zimbabweans in South Africa. If this
estimate is
substantially correct, it is probable that from year-end between
1,5 and two
million Zimbabweans are likely to be deported back to Zimbabwe.
The
consequences upon an already strained economy will be immense and
extremely negative.
Some of those who return to Zimbabwe will be highly
skilled and greatly
needed. This will be good for the economy. However, the
number of skilled
people who will be deported from South Africa will
undoubtedly be relatively
few, for most skilled Zimbabweans are presently
in formal employment in
South Africa. South African employers will have
demanded sight of requisite
South African residence permits before granting
that employment. Therefore,
the boost to the Zimbabwean skills' resource
will be limited.
In contrast tothat one advantage,the prejudices to the
economy will be
extremely great. An overwhelming majority of the
Zimbabweans who fled to
South Africa did so to earn incomes to support their
impoverished families.
That support was partially by remittance of funds,
and partially by
provision of essential commodities.
If, on average, each
gave only US$50 per-month of support, in cash or in
kind, then the two
million likely to be returned to Zimbabwe will have
represented US$100
million of inflows of cash and goods each month, albeit
much of that will
have been received via informal channels. As a result, a
very great number
of the intensely impoverished in Zimbabwe, estimated to
exceed eight
million, will be destitute, struggling to survive at levels
far below the
poverty datum line and confronted with intensified hardships.
Moreover,
whilst a significant portion of the cash inflows from abroad have
been
expended across the border, thereby being re-externalised from
Zimbabwe,
substantial amounts were utilised within the country, and as the
monetary
inflows diminish, there will be pronounced negative repercussions
upon both
formal and informal sector trade volumes, with knock-on diminution
of demand
upon the outputs of the manufacturing sector.
Not only will that further
impair the viability of many Zimbabwean
enterprises, but it may also become
a stimulus for further unemployment in
Zimbabwe. Concurrently, the decrease
in trade will have adverse
repercussion upon revenue inflows to the
fiscus.
The negative impact upon the fiscus will also be intensified by a
loss of
customs duties and other import imposts on the goods sent by those
abroad to
their families at home. Whilst it must be assumed that
considerable volumes
of such goods enter Zimbabwe unlawfully, without being
subjected to those
imposts, and some of them benefit from duty free
allowances, others have
attracted the diverse importation charges, and hence
a sharp diminution in
inflows of goods from Zimbabwe abroad will result in a
fall in fiscal
revenues.
Yet another negative consequence of the
forthcoming South African
deportations must be a surge in the already
relatively high rate of crime in
Zimbabwe. Most Zimbabweans are inherently
honest, but when children are
crying from hunger, even the most honest turn
in desperation to crime. To a
very great extent, those forced to return
from South Africa will be unable
to obtain employment.
Whilst there has
been economic upturn in the Zimbabwean economy since the
horrendous days of
2008, nevertheless the economy remains a very weakened
one, and especially
so when government foolhardily undermines the
slowly-progressing economic
recovery with catastrophically abysmal policies
in 2010.
These included
the disastrously destructive and counterproductive
Indigenisation and
Economic Empowerment Regulations, and the ill-considered
new legislation
governing the mining sector.
These policies, concurrently with failure to
implement fully the global
political agreement, and recurrent inflammatory
statements of hatred for
Western countries have disastrously alienated
potential investors, decimated
business confidence, and precluded access to
international lines of credit
and to developmental aid.
The
ever-deteriorating service delivery of parastatals has further precluded
continuance of economic recovery, and has triggered the reversal of the 2009
economic gains.As a result, the returning Zimbabweans from South Africa,
together with those who are having to return from the United Kingdom will
find life difficult in Zimbabwe.
As they then become increasingly
poverty-stricken, and their needs and those
of their dependants intensify,
many will either seek to return to South
Africa or the United Kingdom, or to
enter other countries, notwithstanding
that they will have to do so
unlawfully.
But very great numbers will not be able to do so, and therefore
will, in
desperation, turn to crime. In so doing, it must be presumed that
many will
seek to emulate the crime methodologies and tactics which have
become very
pronounced in South Africa, inclusive of armed robberies, car
hijackings,
and the like.
The consequences of such crimes will be
adverse. They will include
decline in tourist arrivals, decline on the part
of potential investors in
Zimbabwe, losses for those business enterprises
falling prey to the
criminals, and yet further emigration of the skilled
people that Zimbabwe
desperately needs.
One cannot blame South Africa for
its intended actions against the
Zimbabweans, for it must first and foremost
protect its nationals, its
economy, and the wellbeing of all South Africa's
interests.
However, the adverse economic repercussions on Zimbabwe will be of
such
magnitude that the only possible perception of last week's announcement
by
the South African government is that Zimbabwe is facing a looming
economic
tsunami.
http://www.theindependent.co.zw/
Thursday, 09 September 2010
17:50
ZANU PF is a party that is seeking to reinvent itself. Witness the
copious
notes they are producing by way of analysis and revisionist history
of both
the liberation struggle and post-Independence politics in the
state-controlled media.
What is of particular importance is that
since they suffered a heavy
political defeat by way of the March 2008
harmonised election, they are
beginning to believe their own lie that they
are once again in political
ascendancy. The truth of the matter is that
they are a rather unpopular
party that relied primarily on the unprecedented
use of partisan state
security agents to retain a semblance of power. That
they are not nearly as
legitimate as a democratically elected party should
be therefore beyond
doubt. What they have been attempting to bank on is an
assumed monopoly of
being the only revolutionary party in our country's
history, a claim which
is contemptuous of the struggle for liberation.
In
their attempts at reinvention, they are faced with a myriad of problems
which include the issue of succession within their party, international
pariah status and a still unpredictable Sadc mediator in the processes that
concern the inclusive government.
Zanu PF seems to have developed a
five-pronged strategy in its attempt at
political survival. The first is to
literally attempt to hold out as far as
is possible in the inclusive
government in order to prevent any national
election being held before they
can measure their popularity. Of course they
claim that they are not afraid
of elections as any political party would,
but that is not necessarily a
demonstration of honesty on their part. They
remain in a politically
precarious position to the extent that they know it
is well nigh impossible
for them to win any national electoral contest
outright. Their patent fear
is that they will never be able to muster a
complete majority in any
election in the short-term to avoid having to
contend with another Global
Political Agreement.
The second strategy that they have is to test the
holding capacity of the
two MDCs in the inclusive government. This strategy
is aimed at using the
state media and state security agents to accentuate
any potential divisions
in the two MDCs, ostensibly to weaken them
internally and in the eyes of the
electorate. This would explain why Zanu
PF's narrative is almost of
unbridled joy when they hear of an incident at
Harvest House or in MDC-M.
This also includes their goading of the newly
launched Zapu not necessarily
to outmanoeuvre it, but to keep it in the
political domain in order to
divide the Matebeleland vote for the MDCs. It
will also milk any mistakes by
the MDCs either in the inclusive government
or in the eyes of their
political constituencies for what they are worth in
order to position itself
as an experienced party.
The third strategy
aimed at retaining political survival by Zanu PF is the
reforming and
expansion of its patronage networks. Access to the state and
to state
resources will be key in this process. This includes the
indigenisation
processes which remain controversial in their implementation.
It also
includes continually ratcheting up the land question and attempting
local
government reform with traditional chiefs being given greater access
and
control over either agricultural inputs or the land itself. They have
also
been recruiting employment-starved young Zimbabweans into either the
Zimbabwe Republic Police or other such state security agencies.
The
fourth strategy they are employing is that of attempting to cast the
MDCs as
puppets of the West. Indeed this strategy has been consistently
utilised in
the vain belief that at some point it will gain popularity and
diminish the
support base of the MDC. They have taken this campaign to Sadc
and the AU in
a manner that is as dishonest as it is opportunistic. In the
process they
have tended to conveniently ignore the fact they in the past
years that they
were in complete power they were literally functioning in
compliance with
the dictates of Western powers. This is true of their
adoption of economic
structural adjustment programmes, their willing buyer
willing seller land
policy until desperate times in 2000 and also their
continued membership of
the Commonwealth which they left in a haste and not
necessarily because they
had no intention of not staying.
The fifth and final strategy is to continue
with the narrative of
threatening political violence on those that
voluntarily voted for the MDC
in 2008. This has been done through a divided
Zimbabwe National Liberation
War Veterans Association as well as through the
discredited Constitutional
Parliamentary Committee outreach programme.
Rumours abound as to the role of
the military and intelligence arms of state
security in attempting to
measure the effectiveness of their political
campaign.
It is in these five strategies that Zanu PF is functioning on a
wing and a
prayer. Whether their political opponents in the MDCs realise
this may be a
matter for debate elsewhere. Suffice it to say, that for all
their
posturing, Zanu PF and its leaders are not, and at this rate, may
never be
in a comfortable position after March 2008. And not even with
Sadc.
Zhangazha can be contacted on kuurayiwa@gmail.com