Archive for the ‘Zimbabwe News’ Category

Zimbabwe pensions update: September 2010

Friday, September 3rd, 2010

Zimbabwe government pensions

We are deeply disappointed that the hope given to us by the Director of Pensions almost one year ago has not materialized. Many of those who submitted their Certificates of Life and other documentation required for the restoration of their Zimbabwe Government pensions expressed their misgivings at the time. Never the less, they complied with the requirement. We believe they have been badly let down.

John Redfern has been in contact with Mr Sylvester Mnkandla, the Director of Pensions. He had based his hopes on the US-dollarization of the country’s economy. Grants and investment should have flowed into the country, enabling government to meet its debts and other financial obligations.The anticipated inflow of foreign capital envisaged by Mr Mnkandla has not taken place.

On 17 August, in response to several questions posed to Mr Mnkandla, he wrote the following: “I still hope that remittances of pensions to pensioners resident outside Zimbabwe will resume at some point. Pensioners who were granted authority by the Reserve Bank of Zimbabwe to remit their pensions are not being paid at the moment because it is assumed that they are not in Zimbabwe. What may have happened is that some people have opened bank accounts using local addresses and have provided that information to Pensions Office creating an impression that they are resident in Zimbabwe.

“We cannot tell at this stage whether the authorities will approve the remittances of pensions and whether they will approve payment of arrears. They may agree to resumption of remittances but fix a futuristic (sic) date.

“With regard to those who have died or changed addresses, we need to be advised so that we update our records.  Should the approval include payment of arrears, then pensions for those who have died should form part of their deceased estates.  Social Services/welfare pensions in respect of those who were injured on duty will also be considered.

“What I can say at this stage is that serious consideration is being made to bring this matter to finality one way or another. Am confident that a decision on this issue will be reached sooner than later.”

When specifically asked if the pensions of non-resident pensioners are being lodged in a bank holding account, as was apparently done before the US dollar became legal tender in Zimbabwe, Mr Mnkandla said: “Payment of pensions to pensioners resident outside  Zimbabwe is matter currently under discussion. The outcome of the discussions will determine the effective date. What this means is that if they decide that pensions be paid say from January 2010, they will make the necessary funds available to us to pay with effect from that date. If they decide to have pensions paid from October 2010, whether the funds are in the holding account or not, payments will not be made until then.  So a lot will depend on the decision they take and the effective date.” 

We have no evidence that non-resident pensions were in fact paid into a holding account prior to US-dollarization, as previously stated. However, this is the explanation given as to why there are no accumulated funds since payment to non-resident pensioners ceased in 2003. We have been told that pensioners’ funds that were in a holding account simply disappeared with the removal of 25 zeros caused by hyper-inflation.

Zimbabwe pensions update

Sunday, August 16th, 2009

The Zimbabwe government’s revised budget of US$1.22 billion, announced in mid-July, makes no mention of pensions. However, Government pensioners resident in Zimbabwe are receiving an “allowance” of between US$30 and US$48 per month to tide them over. Some non-resident Government pensioners have arranged with the Pensions Office to have their allowance paid into a FCA bank account in Zimbabwe. The Pensions Office will not remit funds outside Zimbabwe at present. Enquiries may be addressed to the Director of Pensions, PO Box CY397, Causeway, Zimbabwe.

On a brighter note, the Communication and Allied Industries Pension Fund (CAIPF) recommenced pension payments to non-resident pensioners (including those who were employed by the PTC) in June 2009. Pensioners are required to first submit a Certificate of Life, after which an interim monthly amount of US$30 would be paid quarterly in arrears, effective from 1 February 2009. Enquiries can be made to payments@caipensions.co.zw.

The Mining Industry Pension Fund (MIPF) has instituted a similar arrangement, having sent cheques for as much as US$90 to members in June/July this year.

Pencare, the Old Mutual Pensions Fund, also began payment of pensions in June, for members who had opened a Foreign Currency Account with a bank in Zimbabwe. The non-resident pensioner then has to make arrangements with the bank to transfer the funds, at considerable cost in bank charges. OM sent the following message to one of our members. Make sense of it, if you can:

“… please note that before the multi-currency system was introduced, Old Mutual had no license to transact its business in forex. All transactions were being done in Zimbabwean dollars. As such the conversion was based on the asset values of the pension funds (as at the date of conversion), which had been recapitalised using our investment portfolios, including properties. The calculations had to take into account the actual cash in US dollars for disbursement, as we were trying to establish US dollar values for benefits which had been built up in Zim dollars. The pensions would have accumulated to substantial amounts had our financial transactions continued in Zimbabwe dollars. As a result of this, the figures did not come out as anticipated by the pensioners.”

Enquiries should be addressed to Ronica Dyiwa on pencare@oldmutual.co.zw or ronicad@oldmutual.co.zw.

The Cost of Farm Invasions

Tuesday, May 5th, 2009

By Eddie Cross 

In the late 90’s the Government of Zimbabwe held a conference on land reform in Zimbabwe.  Broad agreement was reached between the State, the stakeholders and international aid agencies but the agreement was never implemented.  Two years later, in an attempt to destroy the opposition base on commercial farms, the State began what it eventually called the “Fast Track Land Reform” exercise.

They justified this programme to the rest of the world by arguing that they were redressing historical injustices and racial imbalances in the ownership of the land.  The reform programme ignored the legal situation prevailing in respect to farm ownership and it also ignored the issue of fair and reasonable compensation for assets taken over by the State.

The legal position was quite straight forward - commercial farmers held full freehold title and in over 80 per cent of cases, also held a “certificate of no interest” issued by the Zimbabwe government allowing them to buy the farms on the open market after 1980.  Such a requirement was mandatory - in order to enable the State to acquire the farms if they so wished, on a willing seller, willing buyer basis.  Some 3,8 million hectares of farmland was in fact acquired in this way since 1980.

Farmers holding both the title and the certificates held an unassailable legal right to the land and all improvements.  By so doing they held the right to receive in full, the market value of such assets when they were sold, less any bond obligations to banks.

In the following 8 years, thousands of farms were “acquired” with the regime changing the law every time a farmer or group of farmers secured legal judgements in their favour.  Eventually a group of farmers took their case to the SADC Legal Tribunal in Windhoek, Namibia where they initially obtained a decision saying that they had the right to go to the Tribunal on the issue (the State had apposed the action) and subsequently secured a ruling in favour of the farmers - instructing the Government of Zimbabwe to protect the farmers legal rights.

One small group of affected farmers also enjoyed the protection of a “Bilateral Investment Protection Agreement” signed between the Government of Zimbabwe and the farmers home Government.  A group of farmers of Dutch origin who had invested after Independence and were protected by the BIPA took their case to the international Courts in the Hague.  Last week the highest legal tribunal in the world ruled in favour of the Dutch investors and granted them nearly 22 million dollars in compensation, payable in 90 days.

The attitude of the regime towards the farm acquisitions was quite straight forward.  They were “taking the farms” from their owners.  They simply went to a nominated agency or individual and obtained an “offer letter” which then allowed the “beneficiary” the right to take occupation.  No protection was afforded to the owner or his staff and no interference was permitted, as the operation was considered “political”.  In the majority of cases force was used - mainly in the form of groups of young, politically motivated thugs who acted on behalf of the “beneficiary”.  Once the owners and their senior staff had been evicted, the new farmers took occupation and took advantage of the assets and even standing crops and livestock on the farms.

Many elderly and outstanding farmers were evicted in this way - leaving some of them so traumatised that they never recovered.  One such farmer, Keith Harvey, was evicted from his cattle ranch in the midlands and subsequently went into a cationic coma for two years before he eventually died.  He was a former chairman of the Natural Resources Board and a life long conservationist.  A fine cattleman and a person of great integrity and commitment to the country of his birth.

But no estimate has yet been made of just what the disruption of commercial farms has cost us and I asked economists in the farming industry to let me have the numbers.  Even I was shocked by the statistics.  In 2000 the total output of the agricultural industry in Zimbabwe was 4,3 million tonnes of agricultural products worth at today’s prices US$3,347 billion.  This has declined to just over 1,348 million tonnes of products in 2009 worth US$1 billion - a decline of 69 per cent in volume and a decline of 70 per cent in value.

What is often not appreciated is that smallholder farmers have been just as badly affected by the collapse of the industry as the large scale commercial farmers.  Their production in the past season is estimated to have decline by 73 per cent over that achieved in the year 2000.  This is on top of the forced displacement and loss of employment for 250 000 people and their 1,3 million dependents on commercial farms.

Despite these stunning figures the farm invasions have continued with 480 incidents on remaining farms recorded since the GPA was signed in September last year.  Even those farms that were granted legal protection by the SADC Tribunal have been specifically targeted on a punitive basis by the elements that are carrying on with this illegal activity and in fact are openly defying the SADC decisions.  The international decision is enforceable and creates very significant challenges for the new Transitional Government. Estimates put the total value of potential legal claims at US$5 billion dollars, some 30 per cent more than current GDP.

It is quite clear that the reform programme pursued by the Zanu PF led regime since 1998 has been a costly failure.  This is demonstrated when it is appreciated that over 90 per cent of all production from commercial farms in the past season has emanated from the remaining large scale farmers who are now being disrupted.  There are reports that over half of all the farms taken over are in fact now derelict and abandoned.  Many of the individuals now “taking” farms are doing so for the third or fourth time.  The fact that sugar production in the lowveld, on highly developed irrigation estates, has declined by 35 per cent - almost all of the decline outside of the control of the core Estates of Triangle and Hippo is due to illegal land occupations.

It is time to accept that the past policies on land have been a failure and that it is time to rethink and to put policies in place that will give all farmers security and enable then to finance their operations properly.  Such policies cannot be implemented until the issue of the rights of farm owners is resolved and the issue of compensation addressed.  The combined costs of the folly of the land invasions are staggering - they include US$2,8 billion in international food aid on an emergency basis, nearly US$12 billion in lost agricultural production over 10 years and now a potential bill for US$5 billion in compensation - a total of US$20 billion dollars.

And now we are asking for billions of dollars to fix this self-inflicted damage - its bizarre.

Eddie Cross
Bulawayo, 28th April 2009

Anatomy of a Zimbabwe farm invasion

Tuesday, April 7th, 2009

 Saturday evening 4 April 2009: -

“Police have just arrived on Mt. Carmel Farm - about 13 of them with guns.

Yesterday we had another invasion by a man called Chimambira [which is Shona for landmine].  He later said his name was Madangonda.  He arrived in a maroon Toyota Prado [reg no 743096 M] with about 10 others at approximately 3 pm.  He came straight into the main homestead through the kitchen door and said to Bruce Campbell that we had 5 minutes to get out and leave.

The last time invaders came through that door was 29 June 2008 when we were very badly assaulted by Gilbert Moyo and Simbarahe Zindoga and others and the house was looted before we were abducted. 

It was confirmed today that Gilbert Moyo has been let out of custody by the public prosecutor in very irregular circumstances despite having countless cases of assault, attempted murder, house break-in and theft vehicle theft etc.  against numerous white farmers in the district.  Not a single one of his trials has yet even commenced.  One of the weapons that he stole is still outstanding. 

I went to the police and spoke to Chief Inspector Manika [tel no.  0912 919665] and made a report to Cst.  Nikadzo.  He did not have a report received book so we drove around Chegutu looking for the Sergeant who had the keys for the room where the book was.  We did not find him but he eventually got the book and wrote the report in the book [RRB no.  0505651].

The workers told Chimambira that he could not come and invade the farm and evict us.  Chimambira had no papers but was purporting to be from Nathan Shamuyarira’s office.

Chief Inspector Manika said he would come to sort the problem out.  I saw him at Gadzema 6 km from the farm in a pale blue pick-up [reg.  no.  ZRP 159E ].  He said he would be coming shortly.

When he did not appear I phoned him and he told me that he had got information that the maroon Prado had come to Chegutu which was why he did not attend.

At 8.30 pm the Prado returned and the workers told Mr.  Chimambira that he must leave with his men.  Eventually at 9.30 pm Chimambira left and said he would be back.

Next day at approximately 9 am Chimambira arrived back.  The workers surrounded their group of 10 people and told them to leave. 

I phoned Chief Inspector Manika who said he would come out.  After an hour there was still no sign of him so I phoned him again to say that the situation was deteriorating and he needed to come soon.  I then went to the Chegutu police station and spoke to police officers there saying the situation was not looking good as other people from around the area had also arrived and the situation was turning ugly as they were saying that there should be no more farm invasions.

I was told that police had gone out to the farm.

In the interim the various people that had arrived from elsewhere as well and they and the workers told the invaders to get onto 2 pickups so that they could be taken off the farm and out of the situation in order to avoid violence.  This was duly done. 

Eventually 3 policemen arrived being transported by Chimambira.  They were 2 plain clothes police by the name of Chengeta and Mapotsa and Sergeant Machoda.  There was a long confab before they eventually left saying they would be back.

At 4 pm the police arrived back fully armed.  My wife was driving along the road and overtook them.  They came to my house which is on the other side of the farm and Inspector Zengeni came to say that he was looking for someone who had assaulted someone this morning. 

My wife asked who it was and they said that they did not know.  He then wanted to know where our workers lived and where our foreman lived.

She asked why they were sending so many people to arrest one person when in June with the abduction and beating of her parents and husband police refused to come out.  She was told that it was not her duty to ask questions as she must assist the police.

Inspector Zengeni unbuckled his side arm pistol and threatened to arrest her.  My wife told them that they must arrest her if they wanted to.  They then got into the vehicle and left to go to the main house.

My sister-in-law was at the main house.  The police wanted to know who the owner of the farm was and where Bruce Campbell and Martin Joubert were.  Chimambira then arrived back. 

They then picked up one of the workers and drove off.”

Shortly after this release we received another: - “We have just heard that 7 of our workers have been arrested by police and some of them assaulted.”

So, in spite of our new power sharing government, nothing has changed.  The thefts and looting continue.  We have spoken on the telephone with Ben Freeth this morning.  For someone in his situation he remains remarkably cheerful.  His telephone number is +263 912 241477.

The following is what Ben Freeth sent out at 4.31 a.m. on 7 April 2009: -

“Dear all,

Thank you for your prayers.  On the face of it you may wonder whether they are being answered or not.  I will give you a brief synopsis of today:

We managed to leave Mike and Angela’s house this morning despite invaders all around and a small blockade of cut trees on the driveway going out to the main road.  On leaving though “Landmine” gave his name as “Landmine Shamuyarira” and told us that the place was now his as he has the offer letter for Minister Nathan Shamuyarira.   

Angela and Cath tried to go back a little later to sort out a wound on the old horse that lives in the garden and give him water as well as get the cat.  They also needed to check the small herd of “house” dairy cows as they haven’t been able to be milked for a few days due the invaders stopping the workers from being allowed to work. 

Cath got out of the car to remove the blockade of branches and “Landmine” the main invader tried to grab the car keys and get them both out of the car.  They were denied access to the house.

At the police station the police did not want to take a report regarding this situation.  We had our lawyer, David Drury there, and they eventually took the report after considerable discussion.  We spent the next 7 hours at the police station but police never came out to Mount Carmel to allow us to get to the house despite numerous requests.  For all we know the house is being looted.  They smashed the kitchen door lock a few nights ago and we have not been able to replace the lock.  Police saw the smashed lock but “Landmine” was never arrested. They have now got total control to smash the rest of the locks and take what they like.

Bruce managed to get one of the workers, Sinos, who was badly beaten up by the invaders a couple of days ago, x-rayed.  It has transpired that he has a badly fractured skull.

“Landmine” and the gang that beat Sinos, were at the police station 4 times in the 7 hours that we were there.  They walk in at will and appear to command considerable power with the police.  We asked that they be arrested but police are clearly in collusion with them.

As a result of these beatings and police arrests of the workers, many of the other workers remain in hiding or simply just sleeping rough in the bush.  

I asked the police Sergeant doing the case regarding the arrest of our workers what “Landmines” real name was.  He told me to get me to get it from “Landmine.”  When I asked “Landmine” his real name [in the Sergeants presence] he refused to give it to me.  I was told to get it from the police superiors.  Assistant Inspector Sasa refused to give it to me as it was a “police matter.”  Inspector Zengeni said I was “provoking him.”  Chief Inspector Manika, despite him being on the phone with “Landmine” on a number of occasions, told our lawyer that he does not know his name but will find out.  On the 4 occasions that “Landmine” was there that afternoon he somehow failed to find out!    

Towards the end of the afternoon I was asked to get Martin Joubert to the police station as they just wanted to record a statement from him.  When he arrived they said that they wanted to charge him for kidnapping! [a totally false charge].  They started recording a statement which was done by the light of a cell phone into the night as they had no candles.

They have now put Martin into jail with the other workers.

Dave Drury managed to get private access to some of our workers who were in jail on similar charges.  They were not being brought to court and were being illegally incarcerated beyond the 48 hour limit.  This was pointed out to Chief Inspector Manika but he did not let them out of custody.

The workers showed how they were tortured by police when having statements extracted from them.  They were beaten using a heavy electrical cable.  Dave saw the cable and the welts from the beating.

We also got information that having chased all the guards away, “Landmine”  is now taking car loads of mangos out in the maroon Prado that he drives and selling them at the market. 

On leaving the police I went out to try to get to Mike and Angela’s house on foot in the dark with a friend.  Bruce had told Chief Inspector Manika that we were going to try to sleep at the house to stop any looting that might be taking place.  The Chief Inspector said that he thought this would be fine.

On getting to within 100 yards of the house we were ambushed by some invaders who were waiting for us.  They fired stones with catapults.

We had to run for it while stones whistled past our ears.  My friend went down when a big rock hit his leg but he was up in a flash and somehow avoided capture.  He went down again when he leapt the trees and branches blocking the road and he is quite grazed up.  It was a great mercy that we avoided capture because another cracked skull, 50 yards from where they cracked mine 9 month ago, would not have been good.  

So today has been another difficult one.  At this stage we are quiet at our house though; so we are thankful for that.  The answer to prayer is that despite all this and virtually no sleep for several nights and hardly any food, we are not discouraged.  It is a hard time but I know God is with us and I know that this lack of discouragement has to be from God!

Please keep praying,

With love,

Ben.”

Why stay the course?

Monday, March 30th, 2009

It is now five weeks since we went into the transitional government and I think the most frequently asked question that I hear is “Why are you still in there”.

That is not an easy question to answer but let me have a go at it here.  Our objectives, as set out in 1999 when we launched the MDC in Harare were quite simple.  We set ourselves the goal of bringing in a new democratic dispensation, which would transform the country into a caring, productive and prosperous nation.  We agreed that this goal would be secured by democratic, peaceful and lawful means.

In 2006 when it became clear that normal democratic action would not secure these goals, we decided to change the road map slightly.  We agreed that we would strive to achieve change through a five-stage process: democratic resistance; negotiations; transitional regime; new constitution and then democratic elections.  In our view we have completed phases one and two and are now engaged in phase three with the pathway to the completion of phase four about to start.

We had no illusions about setting up a transitional regime with Zanu PF and the Mutambara group.  We knew the former were devious and totally opposed to the new arrangements - they had been forced to go this route by the March 2008 defeat at the polls and subsequent international and regional pressure. We also know that Zanu PF was unregenerate, had no ideas other than how to loot and steal and to use their positions in government to perpetuate their hold on power.  We knew it would be a struggle.

So when we thought we had got the best deal we were going to get, we stopped arguing and negotiating and simply went into the new partnership.  The Zanu hardliners were stunned and had to fall back onto their reserve position, which was to form a secret Cabal to replace the JOC and to continue the fight even while they participated in the new government.  So they sought to control key centers of power - the security ministries, the Reserve Bank, the Ministry of Justice and the Attorney Generals Office and the Public Service Commission.  Outside of these immediate structures they set up control and communication systems in the Police, the Judiciary, the Army and in many other key areas of civic life.

They carefully manipulated the whole system to ensure that all the Parastatals and State Controlled enterprises were controlled by Zanu PF elements - this was to ensure flows of resources and the use of patronage to maintain political controls.  Once the new administration was in place they set about trying to limit its effectiveness and control and its degree of influence.  The spat between Webster Shamu and Nelson Chamisa over the control of Tel One and Net One - both substantial cash cows, was and is about this.  The continuing battle to maintain their total control over the governors, permanent secretaries and key posts is all about this secret war.

The abductions, arbitrary arrests and the unsubstantiated allegations of treason, guerilla activities including recruitment and training in Botswana, are all about this.  The farm invasions and the theft of private property and the flaunting of the rule of law as a political weapon of control, is all about this.  Zanu PF has no interest whatsoever in “fixing” the problems of Zimbabwe.  They know that, come what may, the international community (mainly the USA and Europe) will feed the people and thus prevent the humanitarian crisis from spilling over into instability and violence.

They feel confident they can subsist on what is left of the economy and maintain their lavish lifestyles.  They also feel confident that they can control the process leading up to any future elections and in the process regain control of government.  In all of this, President, Mugabe, is an essential stage prop - and will be disposed of as soon as the power base of Zanu PF is secured and alternative leadership established.

The past five weeks say it all.  Where the MDC has control - health, education and finance, substantial, even dramatic progress has been made. Where Zanu PF has control there has either been little progress or we have regressed - the media, the Judiciary and the rule of law, agriculture and land reform.  Only the Reserve Bank has been neutralized as a center of power - the Ministry of Finance has cut off its funding and restricted its activities and influence.  This is hurting the flow of resources to the clandestine Cabal of criminals in Zanu PF but they are developing alternative sources of funds and using their accumulated resources to support their activities.

Whoever imagined that this was going to be anything but a struggle, was deceiving themselves.  We knew that from day one.  But this process is the only one in town if you reject, as we have, any thought of an armed struggle to eliminate and defeat this tyranny.  Tyrants do not give up power without a fight and we are no different except that we chose not to use armed conflict to change the situation in Zimbabwe.  This is the toughest route.  It is the best for the country and is the only principled way to achieve change by peaceful, democratic and legal means.

So we see ourselves doing the best that we can in the circumstances.  We are pursuing three goals for this phase: stabilise the situation and try to restore some semblance of decency to the way people live; write a new national constitution which reflects the popular will and will lay the foundations for a new society; and prepare for the next elections by rebuilding the MDC as a political party; and keeping the people informed of what is happening and why there is little progress in some sectors.

I think we can do all of these three things while we fight to make the transitional government work.  If we can hold onto the beachhead where we landed in this invasion, we will be halfway there.  If we can actually make progress during the drive inland, then we can do what we have to do to ensure V Day in 2011.  Perhaps then and only then will we be able to create the Zimbabwe we all want.  Abandoning the beachhead is just what the criminal Cabal wants, we are not going to give it to them.  We are their worst nightmare, we will not quit, and we will not give up the fight until we have secured our goal of a free, democratic and just State.

I am reminded of what Habakkuk wrote 2600 years ago in the Middle East.  He said: “Woe to him who piles up stolen goods, Woe to him who makes himself wealthy by extortion.  Woe to him who builds his realm by unjust gain, who have plotted to ruin many lives.  Woe to him who builds a city by bloodshed.”
To these Habakkuk promises, “Your debtors will suddenly arise and make you tremble, then you will become their victim.”
As for us Habakkuk states, “Though it linger, wait for it, it will certainly come and will not delay.  I heard and my heart pounded, decay crept into my bones, yet I will wait for the day of calamity to come upon the nation invading us.  The Lord is my strength, he makes my feet like the feet of a deer and enables me to go on the heights.”

Eddie Cross
Bulawayo, 29th March 2009

Update on Zimbabwe’s unity government 2 March 2009

Monday, March 2nd, 2009

Progress Report by Eddie Cross

MDC has been inside the tent for 10 days - it was only Friday the week before last when the Ministers were finally sworn in and they started work last Monday.  By now they have found their new cars (that did not take long!) and their offices - some do not even now have a permanent office or support staff, but they are operating.

As is to be expected, some of the Ministers hit the ground running, others were more hesitant and unsure of themselves.  Some mistakes have been made and some progress achieved - not as much as we may have wanted, but some. Certainly the atmosphere has improved a bit although Mugabe does his best to knock us all down from time to time.

There have been some notable achievements in this short space of time.  The Ministry of Finance has affected some reforms and the public service has received hard currency allowances.  More will be paid this week.  Teachers are back at work and I think most medical establishments are also working - to varying degrees, but they are open.  Food supplies in the commercial markets are more or less in free supply and as a result prices have started to decline - some by a significant margin.

In areas receiving food aid there has been a notable reduction in political interference and a sharp increase in food distribution.  In fact in February a remarkable 75 per cent of the total population will have received food from the aid agencies.  I think this is the highest percentage of a national population in receipt of food aid anywhere and at any time - not even Ethiopia during the famine in that country, reached this level of need across the whole country.

There has been a serious explosion at the only functioning fertilizer plant in the country at Sable Chemicals - this uses 30 per cent of our national power consumption and as a result we have had no power cuts for a week.  It’s not because the MDC Minister concerned has waved a magic wand - it’s just that we have more electricity to go around now that the plant is out of action.  I have argued for some time that we should have in fact closed the plant down and used the electricity for other purposes.

Water supplies have gone back to the urban councils where they belong and the Councils are slowly picking up the pieces and trying to rectify matters. Water supplies in Harare are now up to 50 per cent of needs - from 30 per cent and quite a bit of investment is taking place.  Sewerage and solid waste disposal is still a problem and will be for a long time but a team of consultants is visiting all towns and cities to investigate what needs to be done and is making recommendations to the Councils.

We have made some progress in the field of media reform - the Zanu PF Minister has been tasked with this responsibility and as a start, to stop political interference with the State controlled media.  After an encouraging start the State media resumed its delinquent practices and more action is now required - perhaps a bit of surgery.

It is tragic that in those areas where the SADC has responsibility, only very patchy progress has been made.  Although they signed the Global Political Agreement on the 15th September last year and then supported the adoption of constitutional reform in February with the President signing the new legislation into law on the 15th, the old regime shows little sign that they intend either to honor their part of this deal or to work with us on the many urgent problems that need to be addressed.

The National Security Council Act is yet to be signed into law, the basic tenants of the GPA are yet to find expression in the way the State operates and every possible obstacle is being put in the way of progress.  The abductees remain mostly in detention or missing, farm invasions have intensified and segments of the administration are simply refusing to reform or to act when instructed to do so by the new Ministers.

At the same time, a secret criminal cabal has been established - working downwards from the Presidents Office to remote police stations and army barracks.  The paymaster is Gono and the principle role players are senior Cabinet Ministers assisted by a number of senior civil servants.  It is difficult to determine just what they want to achieve but it would appear that they have a number of objectives.

They want to prevent any substantive aid coming to the country in the belief that this will then discredit the MDC in the eyes of the majority.  They want to try and force us to quit the transitional government by holding our people in detention on false charges and allegations, they want to frustrate any new reforms that might usher in a period of media freedom and a more open society.  They want to skew the upcoming debate on the constitution and electoral reform; they want to protect their key players in the administration and to sustain their activities by using state resources.

This past week we saw an open challenge to the authority of the Prime Minister when the administration unilaterally announced the appointment of Permanent Secretaries to head ministries.  Tsvangirai immediately repudiated the action and rescinded the appointments.  A subdued Mugabe conceded they had exceeded their mandate and violated the GPA by doing so.  The Prime Minster will now handle all those appointments properly today.  On Friday we obtained information of an attempt to shift responsibility for the telephone system from the MDC Minister responsible to a Zanu PF Minister.  This was confronted and prevented.

Despite the fact that all farm invasions are illegal after the signing of the GPA and despite instructions to the contrary by the Prime Minister, the President stated that they would continue and the Chief Magistrate ordered the Courts to ignore binding legal agreements in regional Courts.  Farmers with cows in milk, fruit on trees and crops in the ground have been told to leave their farms and homes at 24 hours notice.  If they refused they were jailed and in many cases beaten.  Private assets and homes are being occupied illegally and assets looted.  Clearly this criminal activity will have to be addressed - but who is the policeman in all this - surely SADC and in particular, the South African government.

So here we are - still no action on the key issues that the SADC leadership said should be resolved by the new government - governors are not yet appointed, the Attorney General and the Reserve Bank Governor - all appointed in violation of the GPA have not had their positions reviewed and agreed, the National Security Council is yet to be constituted and begin operations.  The Prime Minister is yet to be allowed to function in accordance with the GPA and the new constitutional provisions.  Illegal detentions have continued and the farm invasions intensified.

On top of all this, regional governments are yet to come to the assistance of the new administration.  When approached for help they disingenuously argued that we “Must settle our debts and they will give us help to do so!”. We owe over US$5 billion to our creditors - have done little or nothing to settle these debts for over 15 years and now - as we take over a bankrupt and devastated State, regional governments sit on their hands!

Eddie Cross
Bulawayo, 2nd March 2009

Street Fighting

Sunday, February 15th, 2009

Eddie Cross, Bulawayo 15 February 2009

I am sorry for the long delay in sending out another of my weeklies, but we have been rather busy to say the least!!  Events here have been dramatic and are moving so fast that it is difficult to keep track if you are not at the centre of things.  A struggle is under way - not with guns, at least not yet! But in every other way this is street fighting - building by building, street by street, close combat between two forces.

On the one side is the secret cabal that has run Zimbabwe since the quasi-military coup in 2002, when the military chiefs stated that they would not salute Mr.  Tsvangirai if he were elected President.  On the other side is a peculiar coalition of forces, led by Mr.  Tsvangirai but including elements of Zanu PF, civil society and even the armed forces themselves.

The Cabal was noticeably absent when the Prime Minister was sworn in - as were a number of other key players, this was not a coincidence.  The Commander of the Air Force has not been seen since the assassination attempt on him in Shamva, the others were all busy making mischief.  The most serious issue remains what role is the State President playing in this drama, if anything.

But however it is described we are seeing a situation where a small group is fighting back and trying to bring about a breakdown of the transitional government which has just been sworn in and on Monday will start to take charge.  The three key elements in this shadowy force are - the Reserve Bank (under Gono), the Ministry of Justice and the Attorney Generals Office and the Military and Police.  Gono is the paymaster and is funding this fight back using the very considerable resources at his command, the Ministry of Justice - or elements in the Ministry, is providing the “legal” justification and the armed forces, including senior elements in the Police, are executing the strategy and providing the muscle.

The legal ruse is the allegation - now totally discredited, that elements of the MDC are involved in “treason” in that they planned the violent over throw of the State.  In fact the real situation is that it is the armed forces chiefs themselves who are trying to do so and in so doing are committing treason against the State.  For, no matter how you construct the transitional government, Zimbabwe now has a democratically elected government that is constitutional and legitimate.  Any attempt therefore, to over throw the State by force, is an act of treason.

This fight is most clearly illustrated by the detention of Roy Bennett at Charles Prince Airport yesterday.  Roy was hauled off the plane, bundled into a car and then driven at high speed to Mutare.  The vehicles in which he was transported were followed by volunteers so that he could not just disappear in the same way that 42 others have in recent weeks.

When the news reached the Prime Minister he was already in consultation with regional leaders on another crisis regarding the appointment of Zanu PF Ministers and the matter was discussed.  Senior Zanu PF Ministers agreed to order that Roy be released.  The President of South Africa left the country thinking that this had been done and a major diplomatic and political crisis (among many) averted.  It was not so, whether or not such an order was given, the Police and the CIO did not release Roy, instead they announced he was to be charged with treason!

If the Ministers of State Security and Home Affairs did give the order for his release, then the government agencies that are accountable to them did not obey the order.  If they did not give the order, they lied to the South African President and the Prime Minister and are part of, what is, in effect, a military coup.  The treatment of the 42 other abductees is further evidence of this defiance of the new order.  They were clearly abducted illegally, held illegally in various State institutions, finally brought to Court and charged with various crimes involving absurd allegations, and denied bail.  A number are still missing and are unaccounted for.

In one of his first actions, the Prime Minister visited them in the High Security Prison outside Harare and instructed that 4 be taken immediately to hospital for treatment.  Two of the four, including Jestina Mukoko are very ill with life threatening symptoms, they were then taken to hospital and in the evening, they were taken by force from the hospital back to prison in clear defiance of the Prime Ministers instructions.

Many other battles are being fought - the coup plotters have people in key places all over government and they are clearly working together.  The question is can they win this struggle.  I do not think so.  They are up against the majority of the people, a democratically elected government negotiated with the support of the entire region and they must now fight to defend their positions from within government where they no longer have legal and political control.  The key player to watch in this struggle is Gono.  If he goes, then the flow of resources (except for illegal resources such as gold and diamond sales) will dry up and they will not be able to sustain their fight.  If he stays, the new government will be seriously weakened, as they cannot then secure the backing and support of important financial players who simply will not work with the Bank whilst he is still in charge.

While this is going on the looting of State assets and resources continue. Right now they are trying to do a deal with a local firm to sell Tel One - a major cell phone operator that is State owned, for US$200 million, which they want to use to support US dollar denominated vouchers to pay the Civil Service with, so that they can at least buy food.  The Prime Minister has instead instructed that the Civil Service be paid in hard currency - Chinamasa defied the Prime Minister last week and insisted they go ahead with the deal even though after Friday he was no longer Minister of Finance.

As for me?  The Prime Minister announced on Monday that I was his choice for Minister of State Enterprise and then on Friday the post was switched to a friend and colleague, Sam Nkomo.  A victim of the present constitutional dispensation where Ministers must be Members of Parliament and carry over into their government posts, their political constituency.  In the American system, the positions of Secretaries of State are selected from outside the political system and the President can - as is the case with the Obama government, select from his whole society, the people to run his government. Under the Westminster system no such clear distinction exists between the executive and Parliament.

The American system has the advantage that Ministers (the Secretaries) are selected not only for their political influence and experience but also for their technical background and experience.  They essentially are managers of the Ministries they run.  Under our system the process is much more political and the PM has to balance contending interests politically.  In my case, I was a victim of the process.  I am sorry - I would have loved to have had the chance to help make this deal work and to get whatever piece of government I was responsible for, functioning again.  But it is not to be and its back to making my own living and working in Parliament to supervise government and look after the public interest.

The Failure of African Leadership

Wednesday, October 29th, 2008

Nothing could illustrate the failure of African leadership more clearly than the farce that took place in Harare this weekend.  Following the debacle last week when Morgan Tsvangirai refused to travel on an emergency travel document restricted to Swaziland, the SADC organ on politics and security convened in Harare this Monday.  It was attended by the Presidents of South Africa and Mozambique as well as the Prime Minister of Swaziland and an official from Angola.

They know exactly what the problem is - in March the MDC beat Zanu PF in a closely contested election and its leader, Morgan Tsvangirai beat Mugabe by a wide margin.  These leaders know that Morgan got more than 50 per cent of the vote - I understand his actual vote was 54 per cent but after five weeks of procrastination and desperate efforts to falsify the poll the Junta was forced to admit that Mugabe had been beaten but that Tsvangirai had received less than 50 per cent and would have to face a run off.

The South Africans know full well that the real result was a clear victory for MDC and a humiliation for Mugabe, but went along with the charade and allowed the run off to take place.  What followed was three months of intense political violence unleashed on the population by 100 000 youth militia under military leadership in over 2000 camps spread throughout the country.

When finally it became apparent that any attempt by the MDC to monitor the election would be faced with violence and even the murder of MDC polling agents, the MDC decided to pull out of the contest.  Zanu PF went ahead and in complete contrast to the March election, Mugabe was declared the winner in 48 hours and sworn in, in unseemly haste.

The African observer missions then turned Zanu’s world upside down by declaring that the election had “not been a reflection of the people’s will” and stating that Mugabe had not been elected President.  Battered and bruised, the MDC and the hapless electorate picked themselves up and were then faced with a demand by SADC leaders that they “resume” the talks with Zanu PF under the mediation of Thabo Mbeki.

Mbeki picked up from where his previous mediation had left off, as if nothing had happened in the interim.  We are now four months down the road on that new initiative and having agreed and signed a power sharing agreement on the 15th September; we are still trying to get the deal implemented.  In signing the deal, the MDC massively compromised its rights as the Party that had won the elections outright in March.

Mugabe, who by all accounts lost the election in March and certainly has no legal or democratic justification to call himself President, continues to act as if he had won the election and Hansard still lists all Zanu PF ministers and Deputy Ministers as Ministers of Government.  No doubt they are still on their full salaries and perks even though a number of them were defeated by MDC in the election in March and all of them were stood down as Ministers when Parliament was sworn in a few weeks ago.

Just to compound this situation Mugabe is treated as a State President by SADC and given full political and diplomatic recognition.  The so called “Global Agreement” provides for a clear separation of powers between the Prime Minister and the President and also sets out in precise terms how the different arms of government are expected to work together.

Only an idiot could interpret the agreement as meaning that Zanu PF is still in charge and MDC is the junior partner, It is self evident that the allocation of ministerial portfolios should be divided equitably, So when, after weeks of pointless argument Zanu PF published an allocation of Ministerial portfolios that gave Zanu PF complete control of the security machinery of the state as well as all resource ministries and left the rest to the MDC, it was a step too far.

That brought the region back into the process and gave us the hope that the regional leadership would recognise the illogical and unacceptable nature os such an allocation and impose a solution on the local players that made sense.  First it was Mbeki and he made a hash of things - actually endorsing the Zanu PF allocation of posts!  Then came the Troika and the aborted meeting in Swaziland.

Morgan had raised the issue of his passport with the negotiators and when he was issued with a Emergency Travel Document with a single destination restriction he refused to travel.  In fact the issue goes far beyond just the question of withholding his travel documents (the passport has been ready for weeks and is sitting in the desk of the Registrar General) it was just the latest of a series of incidents that show that the Junta in Harare has no intention of allowing the new government to be formed.

They are continuing to restrict and interfere with food distribution by the international community.  They have retained tight control over commercial food distribution.  The security forces continue to attack any attempts by civil society to support the negotiation process and the media is as warped and restricted as ever.  There has been no attempt to implement the “Global Agreement” in any form up to now.

When Morgan Tsvangirai failed to attend the Troika meeting it was aborted and reorganised for Harare a week later.  In Harare the key player was always going to be the new President of South Africa, Mr.  Motlanthe.  This was his first real test when it comes to foreign affairs and for most of us it seemed completely logical that he would step up to the plate and smash a home run.

But no - after 13 hours of intense “negotiations” they came out of the closet and issued a statement that did not change one single element in the situation.  The issue would go a full meeting of SADC Heads of State in two weeks time.  What an even larger group of hopeless leaders will do is difficult to imagine.  The key player remains Motlanthe, he alone has the power and influence to force a resolution and it just that that is required.
The Junta will never give up power without the use of force in whatever form and if that is not going to come from the streets, it has to come diplomatically behind closed doors.

In 1976 that pressure came from the South Africans in support of an initiative by the American Secretary of State, in 1979 it was pressure from Mozambique, Zambia and Tanzania.  The only question now is who will do the necessary in 2008?

While this charade is being played out, southern Africa burns.  In the midst of the global financial crisis, we look indecisive and ineffective.  By failing to take crucial decisions on issues such as inter Party violence in South Africa and the resolution of the crisis in Zimbabwe - all within our own clear competence, we are failing our respective countries, the region and our people’s best interests.

It was up to the Secretary General of the United Nations to spell out what was needed.  He called for an equitable allocation of Ministerial portfolios and the formation of a new government in Harare as soon as possible.  He said that only such a move would bring the political and economic crisis under control.  He is right, are our leaders up to it this time?  Failure is just that would be “too ghastly to contemplate”.

Eddie Cross
Bulawayo, 28th October 2008

High Noon on High Street

Sunday, October 26th, 2008

If this were a John Wayne movie we would be about to see the good guy walk down the main street against the bad guys who were going to confront him and to try to ambush him from the side streets and buildings.  Morgan has agreed to attend the SADC summit on Monday and the stakes could not be higher.

It has puzzled us as to why the bad guys had delayed this confrontation.  We now know that they had hoped to be able to spring a surprise election on the MDC rather than face the prospect of their man (Mugabe) having to face our man (Tsvangirai) in direct combat on the street.  A shadowy group, listed in a fascinating article by Charamba in last weekends Herald newspaper, has been attempting to engineer a snap election using the mechanism that was put in place for the June run off that ended so disastrously for Zanu PF.  More than most commentators, they had recognised the dangers to them of the SADC brokered agreement.

This attempt spluttered out when they realised that the new South African government would not tolerate that option - it was only one better than the option of a military coup and in regional terms simply not acceptable.  While they quibbled and played for time, what they did not appreciate was that the ship on which they were standing was in fact sinking.  The consequences of their own actions are destroying the very foundations of the system on which they rely for continued power and sustenance.

The most obvious symptom of this process is the rapid collapse of the Zimbabwe currency.  Issued just three months ago at parity with the Rand and 7 to 1 with the US dollar, yesterday it traded at billions to one US dollar and there seemed to be no bottom to the pit in which it was sinking.  It has become virtually impossible to trade in the local currency and I would not be surprised if people simply stop trading.

There are signs that the South Africans are at last prepared to insist on a deal on Monday.  The reasons are many but in my view the following are the principle elements in this change of heart.

The first, and possibly the most important is the change of leadership in South Africa.  Mbeki has been consigned to a retirement home and the new leadership - Kegalema Motlanthe and Jacob Zuma are hardly friends of Robert Mugabe.  The new President of South Africa was the leader of a Cosatu delegation to Zimbabwe that was hauled off a South African airplane about three years ago, pushed into a minibus and driven to the Beitbridge border post where they were deported and had to be collected by a car sent up from Johannesburg.

Last week Zuma and Motlanthe both made statements calling for a speedy resolution of the Zimbabwe crisis by the completion of the process of forming a new government.  South Africa is the only country in the world with the power to tell Mugabe what he may or may not do.  If they decide that the time has come for a solution, a solution will be found.  They are probably quite happy that such a solution was not secured under Mbeki’s watch as the two ANC groups are now engaged in their own struggle in South Africa.

The second reason is one that has been there for a long time, but has been made more relevant and pressing by recent events.  It is the regional implications of the economic collapse in Zimbabwe.

Of all the consequences of this collapse, the one most directly affecting the South African government are the tens of thousands of people who are pouring over the border into the crowded squatter camps that surround every City.  It is visible on every street corner and every person living in South Africa pays a price for this unwanted invasion.  Given the present situation in Zimbabwe, if a deal is not reached on Monday the stream of people fleeing to South Africa will become a floodtide that could simply swamp their delicate democracy.

The next is the impact on regional business sentiment and international confidence in African leadership and enterprise.  The Rand fell to 12 to 1 yesterday - losing over half its value in a few days.  The stock market has also lost half its value over the past 3 months.  I know the reasons for this are the international credit crunch and its consequences but it does not help to be seen in a region of possible political and economic instability on top of everything else.  A deal in Zimbabwe might actually help the South Africans to defend themselves against the rising tide of global recession that now seems unstoppable.

Adding to this situation is the growing evidence of the criminal nature of the regime in Zimbabwe.  We are engaged in every possible activity of a criminal nature in the region.  Nothing illustrates that more than the illegal diamond trade.  In recent weeks the Reserve Bank of Zimbabwe has been offloading raw diamonds on the international market in large quantities, these carry false certificates of origin and are from Angola, the Congo and the newly discovered Maranke diamond fields in eastern Zimbabwe.  The proceeds of this trade are not being returned to Zimbabwe and add to the increasing flow of funds being siphoned out of the country by a frightened oligarchy that now knows their days are numbered.  This illicit trade constitutes a threat to both South African and Botswana interests as it violates the Kimberly Process.

Back home, the regime has paid the civil service for the month of October.  I understand the Police were paid Z$100 000.  When you know that it will take days to draw that kind of money out of the Bank and that bread is now Z$50 000 a loaf and the real value of their salaries is less than 0,000007 of a US cent, you can understand why the regime cannot rely on the military or the police for protection.  Prices are doubling daily now and no one is able to survive on local currency or a salary.

So Monday may be “D” day - decision time for us and disaster time for them. If a deal is done and we get a new government it will take a few days to appoint ministers and then get going but at least then we will at last be able to tackle the many urgent problems that we have inherited from 28 years of tyrannical and corrupt rule.

Eddie Cross
Bulawayo, 25th October 2008

Chaos in Zimbabwe

Saturday, October 4th, 2008

Today I went from one meeting to another using the main streets in Harare - it was pure chaos.  The City had no electricity, the traffic lights at all intersections were not working and the traffic was gridlocked.  The Police were nowhere to be seen and even as we sat in the traffic a police car drove past - ramped the pavement and drove though the intersection paying no attention to what was going on around them.

At the Reserve Bank it was the same.  They are printing money and creating money in other forms so fast that the inflation rate is no longer calculable.  What we do know is that the RTGS rate - that is the rate at which foreign exchange is exchanged in the open market for money transferred by electronic means is moving by the hour.  At the beginning of August it was 7 to 1 against the US dollar (after we dropped 9 zeros [actually 10]) and yesterday it was 2 000 000 to 1.  Quite a change in 8 weeks!  At this rate it will be no less than 10 million to one by next weekend.

Desperate people are queuing for days at the banks and other financial houses to try and get their money out of the system so that they can spend it before it literally melts to nothing.  In Gweru last week the main street was almost closed by crowds at ATM’s and banks.  In Harare literally thousands of people jam every cash outlet.  The maximum withdrawal by an individual is $20 000 a day worth US$ 0,001 cents.

The Reserve Bank, faced with the escalating consequences of their own ineptitude are now printing money on plain local bond paper with no security features.  The mafia are having a field day and so many counterfeit notes are circulating that people are refusing the new notes.  Instead of adopting a carefully crafted plan to overcome these problems and to correct the fundamentals that are driving the system towards collapse, the Governor today simply closed down the RTGS system and I understand even the inter bank system; rendering the only alternative window for payments impassable.

It is illegal to trade in hard currency - you can go to jail for this if you try, it is illegal to change money on the street, you cannot charge a market price for what you sell unless you are willing to risk intervention or worse.  Even today there were reports of the government taking action against retailers who were “over charging”.  Business is unable to pay their staff in cash, they pay them by bank transfer and then watch as half their work force is absent all day standing in queues.

Non cash forms of payments are rampant - barter is common, the use of fuel coupons with a face value of about US$30 each is also common tender.  The BBC carried a story this week of an auction in Harare where the bids were all expressed in coupons.  Most firms are now being forced to sell their goods and services in hard currency - Rand or US dollars even though it is illegal.

Businesses do not bank the money because the Reserve Bank keeps a close watch on any foreign exchange balances in the Banks and simply expropriates them.  Crediting the owner of these accounts with local currency at a ridiculous rate of exchange and then using the flow of hard currency to support the life styles of the small elite that is still in charge.  At these rates of exchange a luxury, top of the range car costs less than the price of a local cigarette.

Here we are, 4 weeks away from the start of the wet season and we have 2 per cent of our fertilizer requirements in stock.  All other inputs are virtually unobtainable.  The Reserve Bank is handing out expensive farm equipment to Zanu PF fat cats like sweets to a kindergarden, but they cannot provide fuel or seed or fertilizer or chemicals.  It’s madness.

Remaining farmers - black and white are being evicted from their farms by Zanu PF heavies such as a Deputy Governor of the Reserve Bank and what is left of the once world class tobacco industry is facing extinction.  Dairy farmers, pig farms and fruit estates are all facing illegal invasion and disruption of activity.  The Police simply respond to appeals for help by saying that they cannot help because “it is political”.

Our retail chains are empty, many stores are closed, the wholesalers are no longer functional and industry is running at 10 per cent of capacity.  Power supplies are down to about half of demand, fuel is in short supply and spare parts are unobtainable.  All basic foods are virtually only available in the parallel market at very high prices.  Although government schools have opened their doors and the children have gone to school - no teachers are at work. The universities will not open their doors this term - the final term before vital exams.  Business cannot fix prices or salaries - their normal activities are simply frozen in their tracks.

In the midst of this chaos Mugabe went on a 10 day spree to New York to make a speech.  The cost of a 20 minute opportunity to denigrate the leading nations in the world, the very people who have fed his population for 8 years, was the cost of taking a Boeing 767 to New York and back via Egypt. The 54 member delegation must have cost at least US$2 million in allowances and expenses while there.

Then on return he wastes another week with no action on the formation of a new government - now 3 weeks since the SADC facilitated deal with the MDC was signed.  And remember we have not had a proper government since the 29th March - nearly 7 months.  Since Parliament was convened several weeks ago, we have had no government at all.  When confronted with the need to make a decision on the allocation of Ministerial portfolios, Zanu PF has been frozen in its tracks like a child confronted with a cobra.  Simply not knowing what to do and beginning to realize for the first time that the end of the road is in sight for them.

Even though Thabo Mbeki is no longer the power broker he was after his removal from the Presidency in South Africa, they are terrified of his visit to sort out the impasse because they know that their arguments for a disproportionate share of Ministerial portfolios are not defensible.  They cannot hold out for much longer and Mbeki is on his way.

Eddie Cross
Bulawayo, 4 October 2008