NewsHawks 17 June 2022

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WHAT’S INSIDE Friday 17 June 2022 ZNaEnWuSPF SZPimORtrTibutes for
supporters ‘kind-hearted soul’
ZNiEmWiSnvestors corner ministers, Pocock after Aussie
eye US$113m RBZ over failure Senate victory
Namibian
shopping precinct Story on Page 9 Story on Page 44

Story on Page 6

Politically linked
gold dealers mint
money through
govt incentives

ALSO INSIDE Pitfalls of a single gold buyer

Page 2 News NewsHawks

Issue 85, 17 June 2022

Politically linked gold dealers mint
money via govt subsidy incentives

MARY MUNDEYA President Emmerson Mnangagwa ally and Zanu PF councillor Pedzisayi Scott Sakupwanya. the price indirectly in the form of a
royalty. If we have a pricing regime
GOVERNMENT’S Gold Incentives children, as well as other politically producers. become registered and use state-of- that is consistent with what’s obtain-
Scheme (GIS) has come under scruti- connected elites. However, a survey by The News- the-art equipment that does not put ing on the world market, we will not
ny amid indications it is largely bene- our lives at risk. But the money we need any more incentives beyond
fitting politically connected persons, Rushwaya, who was arrested in Hawks revealed artisanal and small- are getting from the gold buyers does that”.
mainly President Emmerson Mnan- October 2020 trying to smuggle 6kg scale miners, who constitute a bigger not enable us to do so. My colleagues
gagwa’s close ally Pedzisayi “Scott” of gold to Dubai, is related to Mnan- percentage of Zimbabwe’s current and I get an extra something from But Sakupwanya, who has
Sakupwanya — a Zanu PF council- gagwa and is a major dealer in the gold deliveries, are receiving between the gold buyers ‘who are our bosses’ emerged as one of the biggest ben-
lor — and his Better Brands Jewel- gold business. one to 1.5% from the current gold in the literal sense and we rejoice. eficiaries of the incentive, defended
lery (BBJ) company which pocketed incentives, with some getting noth- However, the extras we get are noth- the policy.
US$460 million in revenues last year A delivery of 20kg of gold within ing at all. ing compared to the huge amounts
at the expense of artisanal and small- a period of 30 days is eligible for a of money that we hear they are get- “The government has availed in-
scale miners. 5% incentive, a tonne 7% and one to “We just hear that gold buyers are ting from Fidelity.” centives that have made us attractive
three tonnes 9%. given an extra 5% when they deliver to gold miners who now prefer to sell
Artisinal miners make up to our gold to Fidelity. No one that I Amid an economic meltdown, a the gold to us, instead of selling it to
US$500 per month which translates According to Reserve Bank of know is given that extra money after surge of attacks linked to Zimbabwe's smugglers,” he said.
into US$6 000 a year. Zimbabwe governor John Man- our gold is sold. We are usually given growing artisanal mining sector has
gudya, Fidelity received a total of beer and permission to mine peace- killed hundreds of poor miners. Sakupwanya declined to comment
While Sakupwanya, who fronts 29 629.61 tonnes of gold, 18 470 fully without hinderances from other on charges that small-scale miners
for politicians and big mining com- tonnes of which came from small- mining gangs that control the claims Gold Miners' Association of were not benefitting from the scheme
panies access State subsidies, is mint- scale miners. as incentives,” Bruce Chimbwanda, Zimbabwe chief executive Irvin as much as they should.
ing money through gold incentives, an artisanal miner based in Mazowe, Chinyenze said the GIS is mostly
artisanal and small-scale miners are “A total of 29 629.61kg of gold said. benefitting gold-buying agents, con- Current policy approaches, in-
struggling to survive. They say they was delivered to Fidelity Gold Refin- sidering that most small-scale miners cluding the criminalisation of artis-
are not reaping the rewards of the ery in 2021. Large gold producers de- In Zimbabwe, the majority of the are not able to single-handedly pro- anal gold mining by the Zimbabwe-
government’s much-hyped gold in- livered 11 159kg, whilst small-scale working population can be found in duce 20kgs of gold per month as per an authorities, have failed to address
centives. producers contributed 18 470kg,” the informal sector. And in miner- the incentive’s requirement. effectively the persistent challenges
Mangudya said. al-rich areas of the country, people such as land rights conflict, violence,
Gold is central to Zimbabwe’s eco- are continuously risking their lives “The 5% incentive is not in our environmental degradation and
nomic fortunes and politics. Those “Small and large gold producers digging underground in search of view for small-scale miners if you smuggling.
who know the sector’s ins and outs have delivered a total of 29 629,61kg gold, hoping to make enough money consider that it's given for a mini-
— its labyrinth of structures and dy- of gold to Fidelity Gold Refinery to take them out of poverty. mum delivery of 20kgs per month. Mining experts say if the costs of
namics — say whoever controls that (FGR) in 2021, a 55,5% increase That threshold is high. So, in essence imperfect regulations are to be mit-
industry runs the country. from the 19 052,65kg delivered in However, the reality is different. the major beneficiaries of that are igated, new approaches are required,
2020.” While the politically connected like not so much the miners but the buy- including improved regulations and
It is not just a source of livelihood Sakupwanya make millions, artisanal ing agents and of course a few who interventions to formalise the sector.
for thousands, but also a feeding The Reserve Bank of Zimbabwe and small-scale miners are wallowing might have that kind of capacity,”
trough for the politically connected has hailed the GIS introduced by in poverty amid violence in the vol- Chinyenze said. It is important, they say, that the
and a centre of crony political pa- the government for increasing the atile sector. conflict-ridden relationship between
tronage for Zanu PF and its shadowy precious mineral’s output and de- “The reason why that incentive is artisanal and small-scale miners and
economic networks. liveries by 55.5% after recent years Said another artisanal miner, there is to try and buttress delivery large-scale commercial miners be
of successive decline in production. Tonderai Mutasa: “As artisanal and and through an upward review of transformed into an inclusive stake-
The incentive scheme, which was Small-scale miners also maintained small-scale miners, it’s our wish to holder arrangement framed by mu-
introduced early last year to boost the lead in production ahead of large tual interests and co-operation.
gold deliveries to Zimbabwe’s sole
authorised gold buyer, Fidelity Print- Gold is central to Mnangagwa’s
ers and Refiners (FPR), has left ar- economic revival plans. In October
tisanal and small-scale operators at 2019, Mnangagwa and Mines min-
the mercy of big gold buyers who are ister Winston Chitando announced
making a killing at their expense. plans to expand the government’s
gold revenue to US$4 billion per
This comes against reports that year by 2023, an ambitious fourfold
Zimbabwe continues to lose US$100 increase in four years. 
million a month through gold smug-
gling. The government has been saying
it has a target of a US$12 billion
Development experts say if the mining sector economy by 2023.
country was well-run and managed, Mining contributes about 2.6% of
the abundant gold alone could form Zimbabwe’s rebased US$25.8 billion
the basis of an economic rise, while economy.
its valued-added chains of produc-
tion and cross-chain activities could The gold sector does not consist
become a catalyst for progress. exclusively, or even mostly, of big
business.
City states like Singapore and oth-
er Asian Tigers became economic Artisanal miners – poverty-strick-
giants without the natural resources en men and women who toil on their
that African countries like Zimba- own or in small groups using little or
bwe are endowed with. They only no machinery – and small-scale min-
had vision, leadership and develop- ing, which involves slightly larger
ment plans. operations with some mechanisation,
produce the majority of Zimbabwe’s
Last year, Zanu PF councillor gold. 
Sakupwanya’s Better Brands Jewel-
lery pocketed US$460 million after In 2019, artisanal and small-scale
delivering more than seven tonnes of miners combined were responsible
gold to Fidelity, a move that saw him for 63% of reported gold produc-
being named the Best Gold Buyer of tion, although it is unclear whether
the Year at the recently held mining artisanal or small-scale mining is the
industry awards at State House in bigger contributor of the two. 
Harare.
Amid the collapsing economy,
Sakupwanya, who is also chair- an estimated 1.5 million people
person of the National Gold Buyers' have turned to artisanal mining as
Association, an affiliate of the con- a safety net. This trend has grown
troversial Henrietta Rushwaya-led in the post-Covid-19 era which has
Zimbabwe Miners' Federation, has brought compounded hardship amid
close links with Mnangagwa and his renewed economic implosion, cur-
rency and exchange volatility and
inflation.

NewsHawks News Page 3

Issue 85, 17 June 2022

SEVERAL factors contribute to in- Pitfalls of a single gold buyer
stability in Zimbabwe’s gold-min-
ing sector. A centralised gold-buy- This is an extract from the International Crisis Group’s report titled All that Glitters is
ing scheme depresses government not Gold: Turmoil in Zimbabwe’s mining released in 2020. In view of the story we have
gold revenues, encourages smug- written on gold in this edition, this background is necessary to run.
gling and contributes to industrial
mine closures.  Red Wing Mine, Penhalonga, Manicaland. – which have now been crushed
through a brutal state security
Idle industrial mines attract ar- smuggling. These include senior own hands and (partially) occupied site, though police have not arrested crackdown – has been interpreted
tisanal miners, who create revenue politicians, ministry officials, min- a number of industrial mining sites, him and he still holds an important as a move to strengthen his position
that feeds elaborate patronage net- ing company employees, individual some of which were inoperative but party position.  Another Zanu PF and weaken Mnangagwa’s.
works.  The lack of a consistently businessmen and artisanal miners, others of which were functioning. MP, Dexter Nduna, was similarly
functioning legal system free from as well as FPR representatives and accused, but denies the charges and Industrial mining is also bound
political interference spurs confron- law enforcement actors who might Artisanal miners’ infringement the case’s status is unclear.  up with Zimbabwe’s patronage
tation. be paid to look the other way. on industrial mining claims is not economy. Mining companies may
an isolated problem but a product Partly to shield themselves from attempt to use political connections
All gold producers in Zimbabwe, Moreover, FPR’s payment prac- of Zimbabwe’s wider political econ- consequences, local politicians to “move up the queue” in receiving
whether artisanal, small-scale or in- tices have contributed to the shut- omy. Rival factions in the ruling share the revenue they obtain with payment from FPR. 
dustrial, must by law sell to the Re- down of industrial mining oper- Zanu PF run extensive patronage those above them in the patronage
serve Bank of Zimbabwe via its sub- ations, leaving many sites open to networks. Artisanal and industrial hierarchy.  Opposition politicians, Civil society organisations have
sidiary gold buyer, Fidelity Printers artisanal miners’ encroachment. miners are both victims of and ac- civil society and the media have ac- raised concerns about the concen-
and Refiners (FPR).  tive participants in this system. cused politicians at the highest level tration of industrial mining assets
Several of Zimbabwe’s largest of government of being involved, in the hands of Zanu PF supporters,
This requirement has several del- gold producers have halted produc- Artisanal miners are linked to though allegations are unproven. particularly tycoon Kudakwashe
eterious effects on the gold sector. tion at some or all of their mines, the patronage machine primarily Tagwirei, a party donor and adviser
citing underpayment as a main through local politicians.  Politi- Politicians can also wield their to Mnangagwa whom the United
The main problem is that FPR reason.  These companies have also cians can extract revenue from ar- connections to artisanal miners to States and United Kingdom have
underpays and sometimes pays late started legal proceedings against the tisanal miners by extorting them, advance their position in the ev- put under sanctions. 
for gold. The body pays producers Reserve Bank for loss of revenue protecting them from arrest or er-shifting Zanu PF party struc-
partially in US dollars and partial- due to payments partially in Zim- helping them navigate government ture.  Artisanal miners form a con- Landela Mining Ventures, a com-
ly in amounts of Zimbabwe dollars babwe dollars and late payments, bureaucracy. stituency that politicians can deploy pany linked to Tagwirei, has pur-
determined by the official exchange which they allege are selective and to beef up the numbers attending chased state-owned gold mines, and
rate.  motivated by corruption.  Others may own mills that pro- Zanu PF rallies or to cast votes one, possibly two, commercially
cess artisanally mined ore or trade for the ruling party in opposition held mines. Tagwirei denies owner-
This system, introduced in 2014, The government has previous- in materials, like mercury, that min- strongholds, in return for tacitly ship of Landela, but investigations
aims to save foreign exchange, of ly announced a “use it or lose it” ers need. Still others may “sponsor” allowing miners to grab valuable have shown he is connected to it. 
which the Reserve Bank is chron- policy for inoperative mines: either artisanal miners, covering their op- mining assets. 
ically short. But in the open market companies resume mining for ore or erating costs in exchange for a cut The company, whose assets were
the Zimbabwe dollar is worth less forfeit their licence for that mine. It of production. Looking ahead to Zimbabwe’s linked to Tagwire’s Sotic Inter-
than half its official value. The dis- has yet to apply this policy against 2023 election, observers worry national and now the shadowy
crepancy creates a gap between the a gold producer, though mining Prosecutors have accused several that Mnangagwa could use ma- state-controlled Kuvimba Mining
price FPR pays and the world gold companies regard the possibility ruling-party politicians of encour- chete-bearing miners as an instru- House, has furthermore received
price, which is denominated solely as leverage over them.  Artisanal aging artisanal miners to invade in- ment in his power struggle with a special permit from FPR to pur-
in US dollars. miners, for their part, express frus- dustrial mines. Vice-President Constantino Chi- chase gold on its behalf, prompting
tration at the lack of enforcement wenga.  concerns that it could use this dis-
The price difference has fluctu- of that policy while mines sit idle. In 2019, a court found former pensation to mislabel industrially
ated in size, since FPR has often They have taken matters into their Zanu PF MP Vongai Mupereri In turn, Chiwenga’s eagerness to produced gold as artisanal as a way
changed the share of payments it guilty of encouraging artisanal min- take action against machete gangs of evading higher royalties. 
makes in US dollars, most recently ers to illegally mine on an industrial
in May 2020. Prior to that date, in- The Zimbabwe Anti-Corruption
dustrial miners were receiving only Commission furthermore dismissed
55% of payments in US dollars; a set of corruption allegations
they now get 70%, though they against Tagwirei, including unlaw-
continue to complain of being paid fully obtaining mines.
late. 
The Zimbabwe Miners’ Fed-
For their part, artisanal miners eration, the interest organisation
receive, since May 2020, a fixed representing artisanal, small-scale
price per gramme of gold exclu- and medium-scale miners, is also
sively in US dollars, but this price involved in a corruption scandal.
is also considerably lower than the Its president, Henrietta Rushwaya,
world gold price. was arrested in October on a smug-
gling charge, while flying to Dubai
A policy intended to retain for- with 6kg of gold in her handbag.
eign exchange and save the state She says she was transporting the
money has wound up costing it gold for a legal gold buyer. Just one
dearly. Before the policy’s introduc- month earlier, ZMF had received a
tion, between 2014 and 2017, gold permit to purchase gold on FPR’s
deliveries and associated tax reve- behalf.
nue increased.
Factionalism within Zanu PF
But since FPR started retaining can give competing artisanal and
foreign exchange in 2018, the gov- industrial miners an opportunity to
ernment has lost tax revenue and change the balance of power at min-
badly needed foreign exchange due ing sites in their favour.  
to smuggling. Estimates suggest that
more than US$1.5 billion worth of Factionalism within Zanu PF
gold leaves Zimbabwe illegally each can give competing artisanal and
year, often ending up in Dubai.  industrial miners an opportunity
to change the balance of power at
Some dealers estimate that ille- mining sites in their favour. Some
gal exports top official deliveries to industrial sites are home to groups
FPR.  Even FPR admits that large- of artisanal miners aligned with dif-
scale smuggling exists.  The fall in ferent politicians.  Politicians may
official gold deliveries shows no attempt to undermine one anoth-
sign of abating, as deliveries to FPR er by calling in police to expel the
decreased in 2019 and were down artisanal miners associated with ri-
15% in the first half of 2020. vals.  Playing into this dynamic, an
industrial mining company that sees
The government then introduced artisanal miners infringing upon its
the Gold Incentives Scheme last site might seek out their patron’s
year, which has boosted deliveries,
although the system is benefitting
the politically connected dealers
and not artisanal and small-scale
miners.

A range of actors are rumoured
— though such rumours have not
been investigated so cannot be
verified — to benefit from gold

Page 4 News NewsHawks

Issue 85, 17 June 2022

political opponents and get them to tion between industrial and artis- ing. Fidelity Printers and Refiners. years, after which the company
request such a police intervention. anal miners. The ambiguity leaves artisanal mits a mining claim holder to “trib- might not extend the deal, particu-
ute” part of the holdings to a third larly if high-grade ore is discovered.
The presence of artisanal miners Zimbabwe’s Mines and Minerals miners in a precarious position. party. Industrial mining companies Artisanal miners would then lose
at industrial sites provides fodder Act dates back to 1961, was last The government has made inter- will often give artisanal mining co- any investment they have made in
for myriad forms of petty corrup- amended in 1996, and makes no mittent attempts to formalise artis- operatives such tributes in exchange the site.
tion. Members of the police, army mention of artisanal miners or what anal mining while stopping short of for a fee, where such cooperatives
and private security firms common- procedures they could follow to changing the law.  It is possible for exist.  The current cadastre system is
ly ask artisanal miners for bribes to form cooperatives that might hold artisanal miners to acquire a mining paper-based and by most accounts
let them into industrial sites that mining rights. licence, for instance, although the A tribute arrangement can offer badly organised, leaving open the
they are deployed to protect. Some process is laborious and few miners industrial mining companies a way possibility of error or fraud.  
former employees of mining com- Individuals can hold a mining have gone through it. FPR operates to exploit mines that they cannot
panies help artisanal miners find the licence, but they must show an a “no questions asked” buying poli- profitably work themselves. Meanwhile, Zimbabwe has no
richest deposits or rent them com- ability to start mining operations cy, arguably a step toward decrimi- digitised cadastre system to delim-
pany housing. of substantial scale. Individual arti- nalising artisanal mining. But the legal system’s unpredict- it who has mining rights in which
sanal miners are extremely unlikely ability makes both artisanal and area, contributing to competing
Some working in the judicial sys- to be able to do so, although some But it imposes a five-gram mini- industrial miners reticent about claims. The current cadastre system
tem, including police, magistrates, small-scale miners can. mum delivery, which is an obstacle entering into tribute arrange- is paper-based and by most accounts
prosecutors, clerks and court mes- for many such miners, and it also ments. Neither party trusts the au- badly organised, leaving open the
sengers, take bribes to neglect to A bill amending this act was put allows gold stolen from artisanal thorities to protect its interests in possibility of error or fraud. For ex-
arrest artisanal miners operating on to Parliament under Mugabe in miners by gangs or mined by ar- the event of a dispute: even if one ample, ministry of Mines officials
industrial sites or to swiftly release 2015, but the Mnangagwa adminis- tisanal miners on land licenced to party were to obtain a favourable have become embroiled in a “dou-
those in custody. tration has shelved it, reportedly to companies to enter the legal supply court ruling, that party could not ble allocation” scandal, consisting
focus on what it sees as higher pri- chain.  Even modest formalisation count on it being enforced.  of allegations that they recognised a
The presence of artisanal miners orities. The last iteration of the draft efforts are undercut by repression: second claim to an already allocat-
at industrial sites provides fodder bill does not acknowledge artisanal police have arrested thousands of Indeed, it has proven difficult ed plot — allowing a second party
for myriad forms of petty corrup- miners, although it does introduce artisanal miners on charges of il- to enforce tribute arrangements in to mine this plot in contravention
tion.   a new category of “small-scale min- legal mining, at times without re- court, even though they are for- of the original plot holder’s rights
ers”.  gard for any licence that they might mal contracts. Moreover, industrial — in exchange for bribes.  Back in
These dynamics make things have.  Police arrested more than 25 mining companies cannot be certain 2010, Zimbabwe’s Auditor-Gener-
especially difficult for women ar- To miners and civil society fig- 000 artisanal miners between 2006 that police will expel artisanal min- al recommended that the ministry
tisanal miners. Women are easier ures, the lack of mention of artis- and 2009, during an operation ers encroaching upon their claims ring-fence funds to digitise the ca-
targets for gangs that rob artisanal anal miners, along with the foot called “No More Artisanal Mining”, without a tribute arrangement. dastre system, and international do-
miners of their ore.  They also typ- dragging, suggests that officials do and another 8 000 between March nors also have been willing to sup-
ically have fewer of the resources not wish to amend the act, as they 2019 and February 2020. Nor can they be sure that miners port this project.
and connections needed to operate profit from the legal ambiguity in violation of a tribute agreement,
on sites, including industrial mines, around artisanal mining.  No gold The Mines and Minerals Act does due, for example, to non-pay- Digitisation would not in itself
with higher ore grades.  Where- policy exists to complement the make one tacit allowance for usual- ment of fees, will be compelled to address discrepancies inherited
as men might be able to get their Mines and Minerals Act, although ly unlicensed artisanal miners in the leave.  Artisanal miners, for their from the paper-based system, but
hands on working capital through a draft policy, not yet in force, does country’s mining operations. It per- part, feel that their position is even it would give a sense of the scale of
patronage, women miners consis- call for formalising artisanal min- more tenuous. Tribute arrange- such problems and which reforms to
tently stress that they have trouble ments are typically granted for three pursue to best resolve them.  There
gaining access to funds. Women has been no progress toward un-
typically own too little collateral to dertaking the task, however, again
allow them to receive loans; married leading to speculation that some in
women’s collateral is often in the government prefer legal ambiguity.
husband’s name. 
Lastly, the legal system frustrates
Even a credit facility earmarked industrial mining companies trying
to provide women artisanal min- to hold government entities to ac-
ers loans so that they can invest to count, for example for mis-allocat-
improve their operations is hard to ing claims, encouraging artisanal
qualify for, given prohibitively strict miners to dig at their sites or mak-
eligibility criteria. Women are thus ing late payments for gold deliver-
typically relegated to activities with ies.
poor earnings potential, for exam-
ple illegal panning for alluvial gold Several mining companies have
in rivers. taken office holders to court, but
these cases commonly peter out
The patronage system around without resolution or with paper
gold mining thrives in part because convictions that leave the principals
Zimbabwe’s Mines and Minerals free to continue the behaviour for
Act is outdated, and enforcement of which they were convicted.
laws is often haphazard. Various le-
gal ambiguities also hinder reforms — International Crisis Group/
and dampen prospects of coopera- The NewsHawks.

Dubai Zim’s second-largest gold market

BERNARD MPOFU statistics from the Zimbabwe Rev- try exported 2 963 kilogrammes of ports to China increased to 9.9% in Zimbabwe’s major imports re-
enue Authority (Zimra) and sec- semi-manufactured gold valued at April 2022, from 5.9% in March the mained mineral fuels and mineral oil
THE United Arab Emirates (UAE) ondary statistics from companies US$176.9 million, compared to 2 same year. Exports to Mozambique products which stood at 22.1% in
has consolidated its position as Zim- and trade organisations. This report 200 kilogrammes valued at US$135.5 constituted 4.3% in April 2022, be- April 2022, compared to 17.1% in
babwe’s second-largest export destina- shows monthly exports and imports million in March 2022. In the same ing a decline from 7.1% in March March 2022. This was followed by
tion as gold shipments to the region by broad economic categories such month of April 2022, the country 2022. The proportion of exports to machinery and equipment at 13.1%
continue to grow, a new report by the as food and beverages, industrial exported 1 150.1 tonnes of nickel Belgium was 1.2% in April 2022, in April 2022. Other imports in
country’s statistical agency has shown. supplies, fuels and lubricants, capital mattes valued at US$133.9 million, compared to 2.1% in March, 2022,” April 2022 included vehicles (8.3%),
goods, transport equipment, con- compared to 1 009.5 tonnes valued the report reads. electrical machinery (4.9%), plastics
As the global economy continues sumer goods and goods not elsewhere at US$110.2 million in March 2022. (4.5%), cereals mostly rice (3.6%),
to face headwinds caused by Russia’s classified. Besides the major minerals usually ex- “The proportion of imports from animal and vegetable oils and fats
invasion of Ukraine, commodity ported, Zimbabwe also exported 103 South Africa was 43.8% in April (2.8%), pharmaceuticals (2.7%), pa-
prices of minerals such as gold have Data for April 2022 shows that kilogrammes of industrial diamonds 2022, compared to 42.0% in March per and paper products (1.9%), and
firmed. According to the Zimbabwe Zimbabwe’s main exports were valued at US$29.2 million in April 2022. Furthermore, the proportion of fertilizers (1.6%). Notably, major im-
National Statistics Agency External semi-manufactured gold (30.1%), 2022, compared to 148 kilogrammes the value of imports from Singapore ports in Zimbabwe were aggregated
Trade Report for April published this nickel mattes including platinum valued at US$45.2 million in March, increased to 16.4% in April 2022, to reach 91.5% in April 2022. Cereal
month, bullion exports continue to group of minerals (PGMs) (22.8%), 2021. compared to 12.6% in March 2022. imports including maize increased
drive exports. This comes as relations nickel ores and concentrates (14.7%), Imports from China increased to from 1.7% in March 2022 to 3.6%
between Harare and the UAE contin- tobacco (11.5%), industrial dia- “South Africa remained Zimba- 13.6% in April 2022 from 11.6% in in April 2022. Rice, which comprised
ue to grow as investors from the oil- monds (5.0%), ferro-chromium bwe’s major trading partner. In April March 2022. Other imports in 2022 the bulk of cereal imports, constitut-
rich region renew their interest in the (4.7%), platinum unwrought or in 2022, exports to South Africa were came from Mozambique (2.8%), ed 1.3% in March 2022 compared to
southern African nation. powder form (2.4%) and coke and 40.6% compared to 42.9% in March Mauritius (2.6%), India (2.4%), 2.5% in April, 2022. Nickel matte
semi-coke (1.4%). 2022. Exports to the UAE constitut- (United Emirates (1.4%), Zambia and concentrate undergo further pro-
ZimStat produces the monthly ed 34.1% in April 2022 compared to (2.6%), United Kingdom (1.2%) and cessing before re-export.
summary of external trade statistics The report also shows that during 31.3% in March, 2022. Value of ex- United States (0.7%).”
report using data on merchandise the month of April 2022, the coun-

NewsHawks News Page 5

Issue 85, 17 June 2022

Page 6 News NewsHawks

Issue 85, 17 June 2022

BERNARD MPOFU Zim investors eye US$113m
Namibian shopping precinct
ZIMBABWEAN institutional in-
vestors, led by pension funds, are The Grove Mall of Namibia. Bard Santner Markets CEO Senziwani Sikhosana. nising the important role it plays
moving to take over a US$113 within investment portfolios to
million (R1.8 billion or N$1.8 an institutional investors, mainly investment portfolios to help build ant role it plays within investment help build a diversified portfolio
billion) retail property, The Grove pension funds, are interested and a diversified portfolio and manage portfolios to help build a diver- and manage risk, while hedging
Mall of Namibia, in Windhoek — negotiations are at an advanced risk, while hedging against infla- sified portfolio and manage risk, against inflation.
the biggest shopping precinct in stage.” tion. while hedging against inflation.
the country — built by South Af- As  an  asset    class,  real  es-
rica’s Atterbury Properties, owned Until relatively recently, pen- As  an  asset  class,  real  estate As an asset class, real estate tate   demonstrates  valuable  and  
by the JSE-listed Atterbury Group. sion funds invested primarily in demonstrates valuable and distinct demonstrates valuable and distinct distinct  investment characteristics
stocks and bonds, often using a investment characteristics that investment characteristics that that have made it a staple in pen-
The massive deal across three liability-matching strategy. Now have made it a staple in pension have made it a staple in pension sion investment portfolios.
regional countries, which has trig- they increasingly invest in a variety investment portfolios. For de- investment portfolios. 
gered new hectic activity in the of asset classes, including  private cades, Zimbabwean pension funds As a result, Zimbabwean inves-
pension funds market, was bro- equity, real estate, infrastructure, have been investing in real estate Aware of that, Zimbabwean tors want the US$113 million Na-
kered by Stratus Capital Partners, and securities to hedge inflation. asset class, recognising the import- pension funds have been invest- mibian deal.
an asset management firm, and ing in real estate asset class, recog-
Bard Santner Markets Inc, a new The current Pension and Prov- Namibia is an attractive market
Harare-based financial advisory ident Funds Act in Zimbabwe is for Zimbabwean companies due
and asset management company. being amended through the Pen- to its stability.
sions and Provident Funds Bill
Stratus led by Chikuni Shen- to modernise and strengthen the The economy is projected to
jere-Mutiswa, a chartered finan- regulation and supervision of the grow by 2.6% in 2021 and 3.3%
cial analyst whose experience in pensions industry, while giving in 2022, on the back of a steady
executive investment management them flexibility to invest in other recovery in financial services, tour-
spans two decades, brokered the markets.  ism, retail and wholesale trade,
deal. and the mining industries — com-
There has been very little legis- bined with an improvement in the
Bard,   which is the lead finan- lation on the subject of pensions regional and global economic en-
cial advisor, is led by local banker law with the current law statute vironment
Senziwani Sikhosana, who is the having been promulgated in 1976.
chief executive of the company, Provision of pensions is of fun-
with over two decades experience However, the adoption of the damental economic and social im-
in banking, investment, property, 20213 constitution and the Jus- portance, ensuring the successful
and capital and money markets. tice Smith Commission of Inquiry delivery of adequate retirement
of 2017 has brought with it great income. The promise to pay a ben-
Sikhosana works with a local optimism and potential enormous efit during retirement to today’s
business consortium which in- impact on the pensions sector. workers covers a period that can
cludes Tatenda Hungwe, Alfred span many decades.
Mthimkhulu and international For decades, Zimbabwean pen-
finance expert Vinod Bussawah sion funds have been investing in The capacity to meet these
from Mauritius. real estate asset class, recognising promises is one of the most im-
the important role it plays within portant issues in the design of re-
Regional market sources in tirement systems.
Pretoria, Windhoek and Harare
where the deal is being structured All too often, policymakers
say Bard and Stratus, working with mistakenly conclude that a pen-
relevant stakeholders, are working sion system is financially healthy
on a transaction which will see At- because it is generating short-
terbury Property Holdings selling term surpluses. The effective su-
the mall to Zimbabwean investors, pervision of pensions, and of the
mainly pension funds. institutions that provide pension
products and services, is required
Atterbury is a real estate devel- to ensure the protection of pen-
opment, investment and manage- sioners.
ment company. It develops prime
mixed-use, commercial, retail and Built by Howard & Chamber-
industrial properties. From its lain Architects through investment
South African roots, it has spread from Atterbury Property, Attacq
its wings across Africa and into Ltd, The Frontier Property Trust
Europe. and Demushuwa Property Devel-
oper (Pty) Ltd, The Grove is locat-
In the process, it has developed ed in the Hilltop mixed-use estate
many properties in South Africa, in Kleine Kuppe in the southern
sub-Saharan Africa and Europe Windhoek suburbs, at the corner
worth billions. of Chasie Street and Frankie Fred-
ericks Drive. It is largest shopping
Sikhosana told The NewsHawks: centre ever to be developed in Na-
“We are not able to comment on mibia, measuring 52 000 square
that now, but we will let you know metres, at a cost of N$1 billion
when we are ready.” (US$62.5 million).

Atterbury chief executive Ar- Kleine Kuppe and its environs is
mond Boshoff and Shenjere-Mut- currently the fastest growth node
iswa, the Stratus boss, were not in Windhoek. Conveniently, the
available for comment. mall has easy access from almost
all suburbs in Namibia’s capital as
However, a Namibian source at well as to both international air-
The Grove Mall said: ports.

“Atterbury Properties, which is The primary focus of the mall is
owned by the Atterbury Group, on retail and entertainment. It has
are selling their stake in The Grove all the big retain shops found in
Mall of Namibia for N$1.8 billion South Africa and elsewhere in the
(US$133 million). The deal is be- region. A number of contempo-
ing handled by Bard and Stratus, rary restaurants with outside seat-
which are Zimbabwean financial ing under the African sky provide
advisory and asset management spectacular views of Windhoek.
companies,” a source said.

“It’s a good deal involving the
biggest retail business property in
Namibia. The mall, which is dom-
inated by top A-grade tenants, has
an annual turnover of N$890 mil-
lion (US$56 million). Zimbabwe-

NewsHawks News Page 7

Issue 85, 17 June 2022

BRENNA MATENDERE Civil society demands MPs probe
into Penhalonga gold plundering
CIVIL society groups have flagged
President Emmerson Mnangagwa’s market. ing activities at Redwing Mine in and land degradation cases are centred ry portfolio committee on Mines,
government over continued ram- Sources say the artisanal miners, Penhalonga. The shielding of human on Penhalonga, the scourge has since Edmund Mkaratigwa, who is also
pant leakages of gold in Penhalonga, rights abuse in gold mining by gov- spread to other areas in Manicaland Shurugwi South MP, said he was aware
where artisanal miners and a company some of whom are conducting ques- ernment requires Parliament to hold where the illegal miners use the same of the disturbances in Penhalonga.
owned by his ally Scott Sakupwanya tionable operations, actually came the executive to account. modus operandi in mopping up gold
are mining the precious metal. into the area with Sakupwanya's con- with impunity. He revealed that the committee
currence. “Gold is being looted in clear vi- once visited the area as part of its gold
The pressure groups now want the olation of environmental rights by The areas include Buhera around enquiry exercise.
parliamentary portfolio committee on On the other hand, some of the ar- government. The Mnangagwa-led Sabi Star Mine, Premier Estate,
Mines and Mining Development to tisanal miners are committing all sorts government has virtually frozen the Nyamukwara and Nyakaunga Stream, “There are activities of criminal na-
open investigations and pressure the of crimes, ranging from stealing from law in gold mining in total violation all in Mutasa district. Illegal mining ture being witnessed in the area. They
government to stop the crisis that is locals to human rights abuses like un- of the constitution,” he added. activities are also happening in Nyan- may not necessarily have to wait for us
worsening by the day. leashing brute violence. ga areas of Chisero, Nyazingwe and as we have tried to look at the broader
There are allegations that police Nyamukondoza. legal, policy and administrative frame-
Better Brands Mining Company, In addition, the artisanal miners bosses in the province are not taking work in that respect,” he said.
owned by Zanu PF’s Mabvuku coun- are causing serious land degradation action on illegal miners because they Mupfumi said his organisation had
cillor Sakupwanya, is the lead firm at through crude open-cast mining are receiving bribes in the form of established that there are some illegal “In fact, it means the security arms
Redwing Mine in Penhalonga, Man- methods which leave deep pits that cash and gold. Manicaland provincial gold milling machines and hammer of government should move in unless
icaland province, mining gold in the pose a threat to humans and wildlife. police spokesperson Inspector Nobert mills which have been set up in these there are strategic solutions. Negative
mineral-rich fields formerly controlled Muzondo lost his temper when con- areas by politically connected persons. operational issues speak to inefficien-
by Metallon Gold. James Mupfumi, the director for tacted for comment over the bribery Mupfumi estimated that about 7kg of cy and ineffectiveness, issues which
the Centre for Research and Develop- allegations. gold was being smuggled every night we addressed in our submissions and
The mining operations of Better ment (CRD), a civil society organi- from the various illegal concessions. continue to help undo, through all
Brands are under the supervision of sation which conducted investigations “We can’t just start speaking about powers and abilities at our disposal,”
judicial managers who are trying to into the goings-on at Redwing Mine illegal gold mining before we create a Farai Maguwu, the Centre for Nat- he said.
rescue the mine which fell into a debt in Penhalonga, told The NewsHawks relationship. I do not know you and ural Resource Governance director,
abyss during the Metallon Gold days. in an exclusive interview that the situ- am not sure that you are a journalist said his organisation had conducted Mkaratigwa stressed that lawless-
ation in the area is getting out of hand. because there are a lot of people claim- research into the issue of gold leakag- ness cannot be tolerated.
At its peak, Redwing Mine pro- ing to be from the media yet they es.
duced an average of 30 kilogrammes “Parliament has a responsibility to don’t belong there,” he said. “We continue to condemn any
of gold (US$1.8 million) a month. track possibilities of money launder- “I cant pre-empt our findings now form of lawlessness at any level and
ing and illicit financial outflows in Sakupwanya did not respond to before we release our report,” he said. the country has structures throughout
But investigations by The News- Zimbabwe’s gold trade with Dubai messages while Redwing Mine’s judi- the country to deal with these issues
Hawks revealed that at the moment because nothing is accruing to Zim- cial manager David Hofisi did not an- Maguwu, who became famous af- collaboratively and innovatively using
the mine is remitting to the govern- babwean citizens from its gold,” said swer calls when sought for comment. ter exposing illicit financial at the Ma- available resources. We however re-
ment’s gold-buying agent Fidelity Re- Mupfumi. range diamond fields, said the organ- main open to attend to any issue that
finers and Printers between 3.8kg and Investigations by The NewsHawks isation’s report is expected out soon. requires our attention,” said Mkaratig-
5.6kg. “We are concerned about zero ac- revealed that while the major leakages wa.
countability and loss of lives in min- Chairperson of the Parliamenta-
Illegal artisanal miners commonly
known as mashurungwi have invad-
ed the gold fields which span tens of
hectares of land where they now mop
up the gold and sell it on the parallel

Page 8 News NewsHawks

Issue 85, 17 June 2022

US$2m compensation to 734 for
Gwayi-Shangani villagers too little

NATHAN GUMA modern accommodation.  nothing left for social amenities that Gwayi-Shangani Dam. Environmental lawyer Darling-
The government would need to will be destroyed which are current- transparency and accountability,” he ton Chidarara says the government
HUMAN rights defenders say the ly in existence, such as: a primary said.        should have a proper resettlement
government’s proposed US$2 mil- plan on replacing amenities that will school, 60 boreholes and a dip tank. plan for the people.
lion relocation fund is insufficient be destroyed in the relocation pro- The government should give a cost The villagers have also been com-
to provide modern amenities for vil- cess, he added. breakdown for each for the sake of plaining about the lack of consulta- “Projects done should benefit the
lagers who are facing displacement tion in the resettlement process and people. If the project is supposed to
to pave way for the Gwayi-Shangani “This means that there will be an unclear resettlement plan. benefit the people, it means that the
Dam project. investor should get a social licence
from the people,” Chidarara said.
An estimated 734 families in the
catchment area are facing eviction “Their rights must be respected.
to create room for the project being Government and the people should
implemented by the Zimbabwe Na- be on the same page. That’s why we
tional Water Authority (Zinwa) and speak about prior and informed con-
China International Water and Elec- sent.”
tric Corp.
Villagers in the Lubimbia area
Human rights defenders say the of Hwange district have been com-
amount is insufficient to build in- plaining that poor communication
frastructure and facilities that will be in the resettlement process is likely
destroyed in the relocation process. to undermine their rights to educa-
tion, water and cultural heritage.
“If shared equally … it is US$2
725 per household — assuming that Chidarara said the government
everyone gets an equal share of the should improve land entitlement for
compensation package,” says Khum- villagers in future to allow for com-
bulani Maphosa, Matabeleland Insti- pensation.
tute for Human Rights coordinator.
He said loose land ownership sys-
“Building an average modern-day tems have been unfavourable to vic-
four-roomed house using standard tims, thereby stalling compensation
and durable material will cost an processes.
average of US$3 700 (excluding la-
bour) and a modern toilet may cost “Most of the projects happen in
an average of US$500 (excluding la- areas where there is a communal
bour). This means an average mod- land rights system,” he said. “Gov-
ern 4-roomed home with an average ernment knows that people do not
modern toilet built to standard will have much entitlement to the land.
cost about US$4 200,” he said. We have seen this in Chiadzwa and
Chisumbanje.”
Maphosa said, on average, the
allocation would be US$1 425 less In Chiadzwa, villagers were
than the amount needed for basic force-evicted through the deploy-
ment of armed forces to pave way for
a diamond-mining investor.

NATHAN GUMA MPs must demand answers in 2016. These workers had their own
on eroded pensions: ZCTU employees who are dotted in the com-
THE Zimbabwe Congress of Trade munity, said workers who spoke to The
Unions (ZCTU) says Parliament should “We will continue to push the rele- Parliament doesn't act on the findings,” 000  in January 2022. The cost of liv- NewsHawks.
exercise its oversight powers to speed up vant authorities to ensure that the find- Moyo said. ing also maintained an upward trend
the implementation of the Smith Com- ings and recommendations are imple- between February and March, rising Economist analysts say the govern-
mission of Inquiry recommendation for mented. However, we have a Parliament The government has been currently by 17.9%, according to the Consumer ment should take prompt action in
the compensation of pensioners whose that cannot execute its independent at a standoff with Ziscosteel workers Council of Zimbabwe (CCZ). fulfilling the commission of inquiry’s
savings are being eroded by inflation. oversight power. who are set to receive their pensions at recommendations to cushion workers
a US$1:ZW$1 rate. Former Ziscosteel workers from Tor- who have largely been affected by the
The inquiry was set up in 2015 to “The commission recommendations wood in Redcliff said the depreciation conversion.
give the insurance and pensions indus- were accepted by the President and put This means a worker who had US$30 in pensions is going to push communi-
try a transparent process for addressing before Parliament and they appear not 000 in 2017 would have ZW$30 000 ties into further poverty. “If there is one sector of the pop-
challenges encountered in converting to understand their oversight role. It is in 2022. This translates to US$77.22. ulation who deserve more residency
pensions and insurance benefits from either someone deliberately made sure The company used to employ close from government, it is pensioners who
the Zimbabwe dollar to the United The cost of living for a family of to 6 000 workers who were retrenched throughout their working lives funded
States dollar in 2009. six  jumped to  more than ZW$75 the government through taxes and pen-
sion contributions for long-term invest-
ZCTU secretary-general Japhet ment,” said Vince Musewe, an econom-
Moyo said Parliament has been slacking ic analyst.
in pushing for the recommendations
so workers can be compensated for lost He said the government should safe-
value.  guard pensioners’ savings.  

The recommendations include com- “Most of their savings have come to
pensation of pensioners and amend- nothing because of sheer mismanage-
ment of the Insurance Act to enhance ment of their contributions. Now when
disclosure and accountability by indus- they need those savings most they get
try players to pension fund members. very little. You can judge the develop-
ment of any society by the way it treats
“One would have expected that Par- its pensioners.”
liament makes sure that commission
outcomes are implemented. The com- During the hyperinflation period,
mission was funded by the state resourc- pensioners across all sectors who retired
es and acted within the constitution, between 2007 and February 2009 lost
therefore it becomes the parliamentary their pension lump sums.
role to make sure its recommendations
are implemented,” Moyo said. Upon demonetisation of the Zimba-
bwe dollar, pensioners only received as
Moyo said while the ZCTU has been little as US$5 as their one-third lump-
advocating for implementation of the sum benefit, according to a 2018 report
commission of inquiry’s recommenda- on the inquiry titled: “Report of the
tions, little has been done by Parliament commission of inquiry into the con-
to push for their implementation, seven version of insurance and pension values
years on. from the Zimbabwe dollar to the united
states dollar.”

NewsHawks News Page 9

Issue 85, 17 June 2022

MOSES MATENGA Zanu PF supporters corner
ministers, RBZ over failure
ZANU PF supporters have strong- Warns of 2023 elections defeat
ly warned the party of impending Accuse party deployees of sabotage alise there is nothing good in using
electoral defeat in the 2023 general foreign currency as we lose our eco-
election and accused some of Pres- form well. the President. Finance minister Mthuli Ncube. nomic sovereignty.
ident Emmerson Mnangagwa’s de- “Today, you cannot buy bread. “When the son of God came, he
ployees in government, particularly were in place. “We cannot run a budget on
Finance minister Mthuli Ncube, of How do you expect us to perform had a big job at hand and he chose “We have no total control over a currency that is not yours and
failing to address economic chal- well as a party when the economy disciples to work with. One of the which you cannot control.”
lenges while behaving as if they are of Harare is not well?” Chimanga disciples he chose sold him out.” the exchange rate. It is controlled
sabotaging him. asked. by the owners of the commodity Chimanga however questioned
Zanu PF supporters present being sold. The foreign exchange the authority of the central bank
The Zanu PF officials who gath- “The party deployees in govern- during the indaba quizzed the di- rate can be manipulated by those that continues to blame others for
ered at the Harare provincial offices ment, some of them, act as if they rector Economic Research and Pol- who control and own it,” he said. its failed policies.
on Wednesday said the economic don’t care and close markets at will, icy in the Reserve Bank of Zimba-
situation had worsened on Ncube’s yet they know it’s a huge source of bwe John Mafararikwa whom they He said it was baffling that al- “Why blame those outside?
watch in the last four years. livelihood. accused of not proffering solutions though Zimbabwe generates bil- Don’t you have authority as the
to the troubled economy. lions of United States dollars, the central bank?  Are you saying spec-
Some officials suggested that “We have people like (Provincial Zimdollar continued weakening. ulators now have authority over the
former finance minister Patrick Affairs and Devolution) permanent The supporters also questioned economy?” Chimanga quizzed.
Chinamasa had performed better, secretary Tafadzwa) Muguti who why the central bank continues to “There is no basis that the ex-
despite being a lawyer and not an came here and told us that markets give banks money while the cash change rate continues to go up from A Zanu PF member present ac-
economist. would be opened, but up to now shortages persist, with cash mainly time to time. They say the RBZ is cused the central bank official of
there is nothing. He now behaves in the streets. buying foreign currency, others say “saying nothing in many words”
The irate supporters and officials like our boss and we are his sub- it is government, but that is not the while conceding failure as the RBZ
accused Ncube of failing to deal jects. The President is up and down Mafararikwa said Zimbabwe was case. There are others buying for- to execute their mandate.
with a troubled economy and al- trying to show his appointees how a country rich in resources and ide- eign currency just to keep at home.
ways peddling explanations instead to do things, but they do not learn. ally should not be struggling had it Others do it for speculative purpos- “What are you telling us here?
of delivering results to a restless so- not been for those buying foreign es,” Mafararikwa said. Coming to tell us that you have
ciety that is likely to vent its anger “We have roads courtesy of the currency for speculative purposes. failed, yet you have the keys and the
by voting against the ruling party in President, investors come in daily, “Others said if the currency is President gave you powers.
the next election. we have seen his work ethic but we He blamed the economic cri- like this, is it not good to adopt the
feel those appointed are sabotaging sis on many challenges, including US dollar, citing the 2009 compar- Why behave like this?”
The meeting on economic affairs sanctions, saying all fundamentals isons. There is nothing wrong with In response, Mafararikwa said:
was attended by national commis- thinking like that, but you will re- “There is a portion we cannot con-
sar Mike Bimha and Reserve Bank trol in the economy as a matter of
of Zimbabwe (RBZ) officials. The policy and there is a portion we
central bank officials came under can control. It is not a result of bad
fire, with Zanu PF officials and government policies but speculative
supporters accusing them of failing attacks and behaviours by agents
to arrest the runaway inflation and involved in corruption and direct
exchange rate volatility, an indica- manipulation of currency.”
tion that they have failed in fulfill- Questions continued to pour for
ing their mandate. the central bank officials with sup-
porters asking why they were dish-
Zanu PF provincial secretary for ing out money to banks that finds
economic affairs Blessing Chiman- its way into the parallel market.
ga, whose department organised “You give money to banks and,
the meeting, said Harare needed while you do that, people have
proper development if the ruling no cash, yet that same cash finds
party entertained any hopes of win- its way into the streets. Why give
ning. He warned saboteurs , accus- money to banks that end in the
ing them of endangering the party. streets if you are not involved in the
scandal?”
“While others in different prov- Ncube has been subjected to im-
inces depend on mining, agri- mense criticism from many quar-
culture and so on, in Harare we ters, including within Zanu PF,
depend on employment and busi- with senior party officials fearing
nesses. Without all that, we are not his “austerity measures” will cost
safe,” Chimanga said. the party in next year’s general elec-
tion. Members of Parliament on
“We hope to have answers for all Wednesday also quizzed Ncube on
those questions we are grappling the rapidly deteriorating quality of
with. If the economy remain un- life in Zimbabwe.
well, we will have no joy as a party Mbizo MP Settlement Chik-
in Harare. Reasons for this mess winya said: “The question is that in
are so many. We had a central bank view of the dwindling levels of the
official who clearly did not have quality of life where poverty is on
answers for a number of problems the increase, what is the new strat-
raised here. egy under which the minister may
be able to announce to Parliament
“In 2017, the rate was 1:1. The which can give confidence to the
United States dollar and the black citizens that the government is able
market were at 1:2 when Patrick to provide solutions with regards
Chinamasa was the Finance minis- to the current economic challenges
ter. When a professor of economics which we are facing?”
came in, Minister Mthuli Ncube, Opposition MPs were not con-
the exchange rate now is embarrass- vinced with Ncube’s explanation
ingly high. and accused him of lying, saying he
had no solutions for the troubled
“In October, there was over economy.
US$1 billion which was said to
be from the US. Professor Ncube
came and told us the money will
stabilise the exchange rate and pric-
es. He told us the money was cred-
ited, but rates continue to soar.”

He said under the prevailing
economic circumstances it would
be difficult for the province to per-

Page 10 News NewsHawks

Issue 85, 17 June 2022

Ruling party vote-buying tactic exposed

MOSES MATENGA Party cries foul over political betrayal lost Glen Norah, we lost in Kuwadza-
Confirms cell structures in a shambles na where we have a resettlement area
ZANU PF has unwittingly confessed called kumaPaddocks. We lost those
its vote-buying gimmick in previ- Zanu PF's Harare provincial chairperson Goodwills Masimirembwa. areas, yet you come here for assistance
ous elections, saying the party of- and seeking protection.”
ten spearheaded land invasions and to have your own house,” the Zanu tlements and land invaders we think you have stayed in a council house for
would, in return, ride on the votes of PF provincial chairperson added. are Zanu PF for regularisation. Those over 40 years. To those who stay in “You come here with your prob-
beneficiaries by offering them politi- who stay in new illegal settlements illegal settlements, there is a commit- lems and we assist you and protect
cal protection. Masimirembwa said in all previous are fewer than those who stay in rent- tee chaired by Vice-President (Con- you, but you go on to vote for the op-
campaigns, Zanu PF has focused on ed council houses.” stantino) Chiwenga that is working position. You always say we have lots
The revelation confirms the red flag illegal settlements they felt were con- on that. You cannot continue to be of support at the Glen View complex,
raised by a land audit report present- trolled by the ruling party, but he ex- “Even if regularisation is done, we duped by land barons.” but where is that support when we
ed to President Emmerson Mnangag- pressed concern as to why the party will not win. We lost by-elections lose all the time?”
wa in 2019 by Justice Tendai Uchena continues to lose to the opposition. because they did not vote for us,” he “Regularisation is being done by
that exposed how ruling party elites said. Zanu PF, not the opposition. Why He said Harare managed to grab
used land to bait voters. “In all our previous campaigns, then did we lose the by-elections? We Epworth from the opposition because
we have been focusing on illegal set- “You cannot remain lodgers when of the promise of title deeds to home
Mnangagwa is yet to act on the owners by Mnangagwa during the
report which revealed that more than campaign period. However, Mnan-
US$3 billion in potential revenue was gagwa’s promise is yet to be fulfilled.
lost due to illegal sale of land by pol-
iticians mainly from the ruling party. Dozens of illegal settlements in and
around Harare were created as part of
Despite all the regularisation of il- Zanu PF’s vote-buying scheme, but
legal settlements by Zanu PF-linked the party has sometimes proceeded to
co-operatives benefitting thousands place council officials in the forefront
in the capital city, the Harare pro- of house demolitions, with observers
vincial chairperson Goodwills Masi- saying it was punishment to those
mirembwa fumed to party supporters who would have voted the opposi-
during a meeting on Wednesday that tion.
they were beneficiaries of the Zanu
PF land strategy but have betrayed Masimirembwa said there was a
the party by consistently voting for need to provide home industries to
the opposition. thousands of jobless people in the
capital if the party entertains any
Harare is an opposition strong- hopes of winning the 2023 general
hold, with Zanu PF controlling only elections.
Epworth and Harare South.
“Nssa (National Social Security
“We made a PCC (provincial Authority) gets lots of money from
co-ordinating committee) resolution workers and, instead of the money
when Local Government minister financing corruption, it must build
July Moyo said that all those who home industries.”
have stayed in council houses for 25
years should get title deeds,” Masi- Masimirembwa also expressed con-
mirembwa said.  cern over “shambolic” cell structures
in Harare and urged the province to
“We have people in Glen Norah, unite and stop picking unnecessary
Glen View, Budiriro, Mabvuku-Ta- fights.
fara and several other areas who have
been staying in the council houses “The DCC executives that came
and paying rent for over 25 years now. are very few. We must ensure registers
We need to have a list of their names must be marked. We are not working
so that they get the title deeds.” and that must be addressed. Provin-
cial members did not come for the
“You cannot be in President Em- political commissar’s meeting; that is
merson Mnangagwa’s district and fail unacceptable.”

FROM SUMMERS TO WINTERS

WE’VE GOT YOUR BACK

Landline: 08644 305473 Arosenty Air @AirArosenty 0777 662 600/0717 063 253
[email protected]

NewsHawks News Page 11

Issue 85, 17 June 2022

MOSES MATENGA Boiling political temperatures
spark off 2023 violence fears
BOILING political temperatures ob-
taining in the country and arrests of …UN rapporteur worry over activist’s arrest leged attack but the Crisis in Zimba-
politicians together with civil society bwe Coalition insists that Masaraure
activists are indicators of a potentially Zengeza West member of Parliament Job Sikhala. was a victim of political persecution
bloody 2023 electoral campaign pe- as he was vocal in advocating human
riod as the ruling Zanu PF and the 2023. This is a predictable pattern of the opposition and civil society. babwe (Artuz) president and charged rights, pushing for job action and
opposition Citizens' Coalition for Zimbabwe’s political situation espe- “All these arrests are meant to send him with allegations that he mur- calling on the government to increase
Change (CCC) fight for space ahead cially towards elections,” he said. dered a friend at a local hotel. teachers’ salaries.
of the polls. a message to the opposition and civil
“There are no surprises there and society to be more careful, cautious, Masaraure was denied bail and re- “After the death of Issa in 2016, an
Zimbabwe has witnessed the dete- the question being: to what extent self-censor and essentially pull back manded in custody to 20 June. inquest was done and the magistrates'
riorating political situation that was will the Zanu PF government detain from their political campaigns and court ruled out foul play and the then
triggered by the recent murder of and arrest, intimidate opposition and human rights monitoring activities The state claims that Masaraure police spokesperson, Charity Cha-
Moreblessing Ali who is now being civil society leaders? It is the culture and advocacy,” Mukundu added. and his colleagues, who are still at ramba, also confirmed the findings
claimed by both Zanu PF and the that needs to change for our politics large, had a misunderstanding with of the court,” the Crisis in Zimbabwe
CCC as their member. to better serve the people of Zimba- While legislators Sikhala and a late Artuz member, Roy Issa, after Coalition said.
bwe.” Sithole appeared in court this week, which they assaulted him on the head
Violence erupted at Ali’s funeral the police also arrested Crisis in Zim- with “unknown weapons” along Park “The arrest of Masaraure is a calcu-
wake in Nyatsime near Chitungwiza He said the arrests were a well-cal- babwe Coalition spokesperson Obert Street in Harare. lated attempt by the state to silence
where political parties fought run- culated move by the authorities to Masaraure who is also the Amalgam- all critics of Zanu PF’s misrule and
ning battles while several houses were send a clear message to instill fear into ated Rural Teachers' Union of Zim- Issa is said to have succumbed to misgovernance and equally a delib-
burnt. the injuries sustained during the al- erate ploy to persecute human rights
activists and civil society activists
The clashes have led to the arrests ahead of the 2023 elections.”
of two opposition members of Par-
liament Job Sikhala (Zengeza West) Last week, human rights lawyer
and Godfrey Sithole (Chitungwiza Beatrice Mtetwa also predicted a
North) who appeared in court on bloody 2023 election, saying the cur-
Thursday facing charges of engaging rent situation was indicative of that.
in public violence and incitement to
violence. She was addressing the Alex Magai-
sa memorial in Harare.
Political analysts said the current
political situation is ominous as the Mary Lawlor, the United Na-
country heads towards the 2023 elec- tions Special Rapporteur on Human
tions which are likely turn bloody. Rights Defenders, said she was fol-
lowing Masaraure’s “disturbing” ar-
Crisis in Zimbabwe Coalition di- rest closely.
rector Blessing Vava said the current
situation, months before a crucial “I am hearing disturbing reports
election, was frightening and could Obert Masaraure has been arrested in
portend a chaotic poll. Zimbabwe and has reportedly been
handed down further charges. I met
“It’s clear Zanu PF is trying to use Obert only three weeks ago in Dublin
all tactics to scare away opponents to present an award in recognition of
ahead of the 2023 elections,” Vava Artuz human rights work. I am fol-
said. lowing this very closely,” she said.

“All this we are seeing is a dress re- Journalists have also not been
hearsal for the coming elections and spared the harassment, with lawyer
indications of a bloody campaign are Chris Mhike last week saying the
now there for all to see. Mnangagwa country has recorded a number of
is determined to retain the presidency cases involving harassment of scribes,
by all means necessary and violence warning that more is coming ahead of
and intimidation are their biggest the 2023 polls.
weapons,” he said.

Analyst Rashweat Mukundu said
what is happening currently is the
predictable pattern of Zimbabwean
politics particularly as the country
goes to the elections next year.

“We are seeing the ratcheting of
pressure to the opposition and civil
society by Zanu PF as we go towards

Mnangagwa Masvingo ally divides Zanu PF
While Pande has gained support from seems to have the backing of the top ech- in line with President ED Mnangagwa’s uty mayor of Masvingo. I also happen
BRENNA MATENDERE some structures, the old guard feels he is elons at party headquarters in Harare.   Vision 2030 agenda,” he said. to be the DCC (district co-ordinating
using his closeness to President Mnan- committee) secretary for finance in Zanu
A WEALTHY ally of President Emmer- gagwa and former provincial chairperson The tournament is dubbed “ED Cup He added that he sees himself as a PF. I do projects and programmes un-
son Mnangagwa has divided Zanu PF Ezra Chadzamira as his stepping stone. Sports Tournament”. better candidate and denied assertions der those three titles. I have never at any
in Masvingo by openly campaigning to that he is a Johnny-come-lately com- point been on record declaring my inter-
represent the ruling party next year as a The Masvingo Urban National As- The Zanu PF old guard in Masvingo monly, known in Zanu PF parlance as ests to contest for any National Assembly
parliamentary candidate for Masvingo sembly seat is currently held by Jacob see Mahwende as better placed to repre- “mafikizolo”. seat,” he said.
Urban constituency at a time campaigns Nyokanhete who won in the 2018 gen- sent them than Pande whom they feel is
have not been opened. eral elections on an MDC-Alliance tick- being imposed on them. “I was born and raised in Masvingo Zaka North legislator and Masvingo
et. MDC-A is now Coalition for Citizens and only left the town for Harare when Zanu PF provincial chairperson Robson
The policy of Zanu PF is that cam- party led by charismatic leader Nelson James Pande. both my parents passed on to live with Mavhenyengwa told The NewsHawks
paigns can only start after primary elec- Chamisa. In an interview with The NewsHawks, my uncle. Now I am grown up and that the ruling party has not opened
tions have been held to choose candi- Pande admitted that he intends to repre- have successfully established businesses campaigns and said those doing so are
dates. Nyokanhete defeatedTaguma Mazari- sent Zanu PF at next year’s general elec- in different southern African countries. being mischievous.
re who represented Zanu PF in the 2018 tions in Masvingo Urban constituency. I want to come back home and uplift
The policy was recently reiterated general elections. “The position is I want to take over my community through empowerment He said the people of Masvingo in
by national commissar Mike Bimha Masvingo Urban in 2023 to allow the initiatives and income-generating pro- Zanu PF must only recognise losing
while referring to rival groups that had Pande’s campaign trail has triggered community to build up their own city grammes to benefit women and youths,” 2018 candidate Mazarire as their shadow
emerged in Harare. the emergence of a faction led by Mas- and benefit from devolution programes he said. MP.
vingo deputy mayor and ward 6 coun-
However, James Pande, a wealthy cillor Wellington Mahwende, which is Pande claimed he had already started Mavhenyengwa however downplayed
businessman who owns a company determined to checkmate his political developing the constituency even before the issue of factionalism in the province.
called Big Deal and lives in Harare, has ambitions. being voted into office.
already begun campaigning in Masvingo “If Pande and Mahwende are just
and making his intentions clear. “The problem is that he came from “I donated US$5 000 towards the trying to outfox each other, that is not
top officials and he is not known here. match between Masvingo United FC factionalism. We say it is factionalism
The businessman has sought support He is close to the president of the party and Simba Bhora to entertain my com- when there is someone in front of them
from Zanu PF structures in the 10 wards himself. They share the same totem. Per- munity and encourage youth participa- wishing to become the president of this
of Masvingo Urban constituency. Some haps he is the one who gave him blessings tion in sports to avoid drug abuse and country. However, I must hasten to say
of them are warming up to his overtures, to come to Masvingo,” said a Zanu PF other illicit activities,” he said. anyone campaigning for a position of
but the old guard is strongly against his official who is anti-Pande. MP at this stage is doing so out of mis-
moves, preferring to back a local party Mahwende denied that he is leading chief,” he said.  
member. Mahwende’s faction recently intro- a Zanu PF faction that is trying to slow
duced a soccer tournament that pits down Pande. “At the moment people must just be
On Independence Day (April 18) this Zanu PF structures in the constituency’s campaigning for our president because
year, he bankrolled the provincial cele- 10 wards as the old guard prefer him “I am executing my duties as a coun- he is the confirmed candidate for 2023,”
brations and held a car rally with sleek as their candidate ahead of Pande who cillor in my ward, which is ward 6 of added Mavhenyengwa.
vehicles in the suburbs of Masvingo. Masvingo Urban and also at large as dep-

Page 12 News NewsHawks

Issue 85, 17 June 2022

Zec’s lavish spending unmasked

BRENNA MATENDERE

THE Zimbabwe Electoral Com- Zimbabwe Electoral Commission offices in Harare.
mission (Zec) spent more than
it had budgeted for in the year and ward 15 of Mwenezi Rural Dis- “Parliament, equally, has the re- operate with each other and be ac- Zec said the commission's major
2020 when the nation was under trict Council in Masvingo, which sponsibility, on behalf of citizens, countable to the public for decisions activity in May was presentation of a
Covid-19 lockdown during which were conducted in the month of to hold Zec to account periodically and actions,” he said. paper at the National Defence Uni-
electoral activities were prohibited. February. to foster a culture of transparency versity of Zimbabwe by commission
which should transcend all other Chimhini stressed that Zec must chairperson Chigumba. In June, the
This has raised questions on the In its activities, Zec registered 973 functions of the public body,” he comply with provisions of the law Zec said, its activity was the adop-
commission's opaque expenditure, new voters and deleted 12 000 from said. and best practice. tion of a media monitoring strategy.
The NewsHawks can reveal. the voters' roll mainly due to deaths
of people on the register. The ERC board chairperson re- “The use of finances by any elec- In July, the body said it fought lit-
The statistical data is contained iterated that if the use of funds by tion management body is governed igation against recalls of MDC-Al-
in the electoral body’s annual report In the report, the Zec chairperson Zec remains shrouded in secrecy, by principles of election adminis- liance MPs while in August it filled
for 2020 which was tabled before Priscilla Chigumba said the year was the commission's core mandate of tration of which transparency and proportional representation MPs.
Parliament on 20 June 2021 but did difficult for the electoral body due conducting elections could be com- accountability are key characteristics Zec said in the same month it
not receive much scrutiny. to Covid-19. promised. to foster trust and confidence. As a launched a policy on electoral activ-
public body, Zec has a responsibility ities.
Zec’s 2021 annual report is yet to “The pandemic altered the rou- “If the use of public funds by an to open itself up to public scrutiny
be released. tine for business at both personal election commission is shrouded in and to account on how it uses pub- In August, Zec said it worked on
and institutional level as all grappled secrecy, then chances are high that lic funds,” said Chimhini. filling proportional representation
The document shows that Zec to a new normal,” she said. the management of the elections MPs' slots. In September, Zec said
spent ZW$138 million (US$1.623 themselves could also suffer the Allen Markham, the Harare it worked on a bridging capacity
million as per the 2020 interbank “For the first time in history, the same fate. We therefore encourage North MP, said he was concerned building training programme on
exchange rate) in 2020 and carried commission was forced to suspend the Zec to fully disclose its budgets that Zec registered 973 new voters gender and elections.
over debts amounting to ZW$6 all electoral activities in line with di- and use of public funds as part of its in the year 2020, yet an estimated
million (US$70 000 as per 2020 in- rectives and protocols issued by the efforts of building public and stake- 300 000 students turn 18 every year. Zec activity plan for October is
terbank rate) despite having banned state on the prevention and spread holder confidence in its work,” he cited in the report as having been
electoral activities in April of the of Covid 19.” said. “Of interest in this return is the re-alignment of its 2020- 2024
same year. that Zec registered 973 voters in strategic plan.
She added that the commission- “The ERC insists that in between the whole of 2020 in the whole of
There was no debate in Parlia- ers were not able to convene their elections, the prioritisation of use of Zimbabwe. We have over 300 000 In November, Zec does not cite
ment over the Zec report. mandatory six meetings in the year, funds by Zec should be targeted at school leavers every year who have any activity it did and in December
meeting only five times. enhancing the integrity of the elec- now been disenfranchised. It is the commission said it worked on
The major mandate of Zec, as cit- toral process. Zimbabwe cannot af- concerning that Zec used all of its engaging partners and diplomats on
ed in the report, is to “prepare for, Trust Maanda, the Election Re- ford another disputed election.” budget under the circumstances, yet electoral activities in the country.
conduct and supervise elections” in source Centre (ERC) board chair- it blamed Covid-19 for failure to ef-
the country. person, said Zec must open up on Tawanda Chimhini, the ERC di- fectively deliver on its mandate,” he Among the expenditure listed by
how it used the funds so that there rector, in a statement released on 19 said. Zec is the creation of a data centre
These activities are the ones that is stakeholder confidence. July 2021, condemned Zec for not at a cost of ZW$2 million (US$23
must be funded by its annual bud- availing its accounts for the 2018 Markham also pointed out that 529 as per 2020 interbank rate), a
get while additional funds could be “The use of finances by any elec- and 2019 audits by Auditor-Gener- the figure of 12 000 people deleted disability workshop that cost US$6
obtained in times of general elec- tion management body is governed al Mildred Chiri. by Zec in the voters' roll was paltry 426; a workshop that cost US$14
tions. by principles of election adminis- and undermined the credibility of 443; purchase of thermometers for
tration of which transparency and “We take this opportunity to forthcoming elections. ZW$68 640 (US$807 as per 2020
Zec revealed in its report that it accountability are key. As a public remind Zec that the principles of interbank rate); strategic workshop
was allocated ZW$91.2 million body, Zec has a responsibility to public administration and leader- Between April when Zec had ZW$2 066 400 (US$ 24 310 as
(US$1. 070 million as per 2020 in- open itself up to public scrutiny and ship under section 195 of the con- banned electoral activities and De- per 2020 interbank rate ) and vehi-
terbank rate) at the beginning of the to account for how it uses public stitution require all institutions and cember, the commission, according cle insurance costs at ZW$881 000
year 2020 and went on to receive a funds,” he said. agencies of government at all tiers to to its monthly activities cited in the (US$10 364 as per 2020 interbank
further tranche of ZW$50 million be: accountable to Parliament, co- report, did not conduct programmes rate).
(US$58.82 as per 2020 interbank Maanda added that Parliament that required much money.
rate) from the unallocated reserves must hold the Zec accountable on
of Treasury. The money was des- its use of public funds.
ignated for operations. Although
the total budget reached ZW$141
million (US$1.658 million as per
2020 interbank rate  ) Treasury re-
leased 97% of the total amount,
which made it ZW$138 million
(US$1.623 million as per 2020 in-
terbank rate).

In the report, Zec said it carried
over ZW$6 million (US$70 000 as
per 2020 interbank rate) debt after
having failed to pay its bills to ser-
vice providers such as TelOne, Af-
ricom, Tendo Electronics, Powertel.
Zec also said it had incurred debts
on fuel for staff members.

In the executive summary of the
report, the electiin supervisory body
said it suspended by-elections in
April 2020. In that year, 19 parlia-
mentary seats fell vacant mainly due
to recalls by the MDC-T party led
by Douglas Mwonzora of legislators
loyal to Nelson Chamisa who was
leading the MDC-Alliance.

A total of 76 local authority seats
fell vacant again in the same year.

The ban on by-elections in April
2020 meant that Zec only conduct-
ed by-elections in two municipal ar-
eas, ward 44 of Harare metropolitan

NewsHawks News Page 13

Issue 85, 17 June 2022

Geogenix BV MDC-T councillors at the behest
bosses jet in to of Local Government minister July
save collapsing Moyo who insists the transaction was
Pomona deal above board and had the blessings of
the Zimbabwe Development Agency
MOSES MATENGA Harare to honour its contractual ob- everyone and we hear their concerns. Pomona dumpsite. (Zida).
ligations. At this point, we have processes that olution, the issue of contract and
GEOGENIX BV bosses who run we have started and we will talk with contractual obligations, but I am An eight-member team was set up
the company behind the contro- However, the team that also in- (everyone) be they government, be sure they will put a full and better to probe the deal and report to coun-
versial US$400 million Pomona cluded its Zimbabwean represen- they investors, so that they under- description on Friday morning when cil within 14 days.
waste-to-energy deal flew into the tative Delish Nguwaya could not stand where we are coming from as we are going to get what they are say-
country on Thursday in time for cru- immediately grant interviews to the council.” ing.” “Their first letter was simply say-
cial talks with Harare mayor Jacob Press, saying they will only speak ing abide by the contract which is
Mafume and his team as they des- after the tour of Pomona dumpsite, “We explained the council res- Council last week resolved to what they are entitled to do. What
perately seek to rescue the collapsing expected on Friday. suspend the deal entered into by we are going to do is to hear their
project that has been criticised by concerns and take them back to
residents. Mafume confirmed the meeting council if need be and see where we
on Thursday night, saying: “We met, go from there,” Mafume said.
The bosses, led by the Nether- they raised their issues and we ex-
lands-based company’s global chief plained the council resolution.” Asked whether council is likely to
executive officer, held a meeting reverse its resolution, Mafume said:
with Mafume, town clerk Phakamile “We asked them to put their issues “No, we have a council resolution
Mabhena Moyo and other officials in in writing, which they promised to and what we want to do is look at
which they argued on the need for do, so that we see where we are hav- what they are saying.”
ing departure points. But as council
we are for everyone, we meet with “The only way to look at the
council resolution is by reversing it
or court action, therefore we have to
have reasons so we look at their rea-
sons, if they make sense, they make
sense, but what we are clear about is
what the residents have told us and
what we will do is always in consul-
tation with residents and we have set
up the investigation committee and
if they appear before that and we will
get guidance from them.”

Residents have described the deal
as corrupt as council is expected to
pay US$22 000 a day for dumping
waste at Pomona site, which is owned
by the local authority.

InInteternrnataitoinoanlaDlay
of theADfaryicoafnthCEleihmiinladting Harmful Practices Affecting Children
African Childeme:Eliminating Harmful Practices

A ecting Children