NewsHawks 23 September 2022

WHAT’S INSIDE Friday 23 September 2022 NOEpWaqSue Price
million-dollar
NZaEcWc,SZec deals haunt US$1
pressured on councils
accountability PSPuOniRsThed for calling
failures Story on Page 6 himself ‘Beast’,
but now tracing
Story on Page 3 his hero’s footsteps

Story on Page 50

Fresh human
rights violations
by state security
agents in Marange

ALSO INSIDE Looting fears as ministries secretly invest in companies

Page 2 News NewsHawks

Issue 99, 23 September 2022

Fresh human rights violations by
state security agents in Marange

BRENNA MATENDERE So for all the things which happen during such diamond buyers have firmly established networks its report, adding:
operations, it is the police who must be answer- with state security forces and guards of mining “Research findings by CRD indicate that busi-
A dramatic upsurge in human rights violations by able because they will be responsible for the op- companies to facilitate illegal diamond mining
state security agents in Marange diamond fields erations,” he said. and smuggling activities,” reads part of the re- ness entities are losing up to US$10 000 of rev-
in Manicaland, as well as plunder of precious port. enues every month to pay bribes to various state
gems by rogue syndicates with the protection of “We do not condone such cases and we look security forces in order to continue operating.
law enforcement agents has been unearthed in a into them.” The NewsHawks gathered that the illegal net- When they fail to pay them, their response is vin-
new investigation. works are more pronounced in Singwizi Valley, dictive and ferocious.”
In yet another case recounted by the CRD, the green zone concession of the Zimbabwe Con-
Following a frenzied diamond rush by citizens, Justice Zimunya lost his teeth and sustained a solidated Diamond Mining Company (ZCDC). The CRD urged the authorities to demillita-
the government declared the Chiadzwa diamond broken leg from assault by unidentified soldiers rise the Marange diamond fields in order to stop
fields in Marange a protected area under Protect- after he had failed to surrender a seven-carat dia- Other hotspot areas are in Makotamo, Tino- the current mayhem.
ed Places and Areas Act (PPAA) (Chapter 11.12) mond piece to them. engana, Mwaora, Rambai and Kuudzewe villages
in a bid to try and plug leakages of the gems. of Singwizi Valley. The fresh cases of state security breaches in
The latest case is of Kudzanai Chiradza and Marange recorded by CRD are reminiscent of
Although PPAA has been on the country’s Dzikamai Muzenda of Mukono village in Ma- “CRD noticed that over 3 000 illegal miners the incident which happened on 22 January
statutes since 1979, it was gazetted to take effect range, who were attacked by state security forces digging for diamonds in the valley were under 2019 around 01 00 hours when three uniformed
for Marange in 2007. when they raided Chingome Business Centre in the watchful eyes of illegal buyers and state se- members of the Zimbabwe National Army
Marange on 16 September 2022. curity forces. armed with AK47 rifles led 49 diamond panners
The PPAA law empowers the government to into portal (A) of Zimbabwe Consolidated Di-
control the movement and conduct of people in Other business centres in Marange like Tenda, “CRD is concerned that these ongoing sense- amond Company (ZCDC) and looted about 1
protected areas. Mashugashuga, Makotamo and Muchena also less attacks on citizens are taking place in residen- tonne of diamond ore.
face similar raids. tial areas and public spaces such as business cen-
An authorised officer like a soldier or police tres, marketplaces and even on roadsides,” reads The soldiers disarmed and assaulted three se-
agent under section 5 (1-5) of PPAA has discre- In its report, the CRD stressed: “A lot of vic- part of the organisation’s report. curity guards, namely Moyo Mostead (aged 23),
tionary powers on people seeking to enter “or tims caught during the raids are detained in two Liberty Mbundinga (34) and Sibangane Bandera
be in a protected area and may detain any such open cages at Mbada Diamond base where they In 2019, government awarded 5 340 hectares (52).
person for the purpose of searching them”. The are forced to sleep for three days without blankets of a diamond mining concession in Singwizi Val-
section also gives power to the authorising officer if they fail to pay bribes or raise a fine of US$10 ley to the Marange community. However, the The soldiers then force marched ZCDC
to deal with any other matter in a manner that equivalent of Zimbabwe dollars.” condition set by the government does not allow guards away from the mine where they handed
the officer considers to be necessary or desirable. the community to mine in the concession or their weapons back and set them free. An alerted
“Victims have complained of inhuman treat- form joint venture partnerships with investors of ZCDC reaction team tracked the armed soldiers
However, the Centre for Research and Devel- ment at the detention barracks. Women traders their choice. and their band and exchanged fire with them, re-
opment (CRD) has revealed that state security caught selling their mechandise have often com- sulting in the death of one artisanal miner, Wil-
agents manning the area to enforce this law have plained of being molested by state security forces According to the government, only the liam Mwedzi (37). Although cases of army mem-
been committing human rights violations. when climbing their big military trucks. Some ZCDC, a government mining entity, has the bers who are arrested and prosecuted for crimes
break their legs whilst attempting to climb into mandate to mine in the concession and retain that benefit them financially or otherwise are not
The NewsHawks is in possession of photos of the trucks. Locals are traumatised by state secu- 70% shares, with the Marange community re- many, some rogue soldiers have been punished
badly wounded citizens abused by the state se- rity brutality.” ceiving 30% shares. in the past.
curity agents as well as footage of decomposing
bodies suspected to be from such incidents. The CRD also said cases of smuggling of the The CRD however said state security agents The Zimbabwe Defence Forces General Court
diamonds by illegal miners who give kick-backs are not protecting this area but are instead letting Martial on 21 January this year sentenced two
A case in particular which was picked by CRD to the security personnel, mostly police officers, in illegal miners who at the end of the day give soldiers, Lance Corporal Dzimbanhete Tatenda
is of Maud Makowa of Muedzengwa village, who had increased. them part of the diamond loot. and Trooper Munesi Wilfred, to 40 years impris-
says she was assaulted by a soldier called Munashe onment each for armed robbery. The convict-
Masvaure stationed at Airstrip base in Chirasika “The security forces are behind the influx of “CRD discovered state security forces do not ed military personnel had robbed a Marondera
village for turning down his sexual advances. She over 9 000 illegal diamond miners, buyers and carry out reactions in these areas because they are farmer of US$16 830 and R600 last year in No-
was assaulted at her shop on 14 September 2022. traders operating in Marange. They collect bribes the ultimate beneficiaries of the illegal diamond vember.
from these operators to allow them to access pro- trade. CRD observed that there is no legislation
In another case again picked by CRD, Thomas tected diamond fields.” to operationalise this arrangement. There are no The court martial ruled that the convicts would
Ziruwi says he was assaulted by three unidenti- timelines set by government either for ZCDC to be demoted to the rank of private and first-year
fied soldiers on 12 September 2022 at 7pm in “CRD recently witnessed illegal diamond buy- kickstart mining activities in the concession that trooper, respectively, and discharged from the
Tonhorai village of Marange. ers driving top-of-the-range vehicles freely in and will enable the community to derive revenues Zimbabwe Defence Forces with ignominy.
out of Marange diamond protected areas. Infor- from their 30% shares,” said the organisation in
The unidentified soldiers jumped into Ziruwi’s mation gathered by CRD indicated that illegal
scotch cart without his permission and severely
beat him up for questioning their harassment of
fellow villagers in the community.

“CRD condemns rampant and reactionary
attacks on citizens by state security forces in Ma-
range-protected diamond areas. The attacks have
seen an increased number of people falling victim
to sexual harassment, assault and murder at the
hands of state security forces during the course
of this year. CRD observed that state security
agencies are manipulating state powers enshrined
in the Protected Places and Areas Act (PPAA)
(chapter 11.12) to commit these horrendous
crimes in Marange,” reads the report.

“Findings by CRD reveal that 13 state secu-
rity bases and checkpoints dotted around the
protected diamond area of Marange were porous
and unsustainable because state security forces
responsible for manning the area are corrupt and
compromised.”

Police spokesperson Assistant Commissioner
Paul Nyathi did not pick calls when contacted for
comment. He also did not respond to an email
sent to him on 21 September 2022.

An officer from his office, who identified him-
self as Constable Brian Madora, later called and
said responses were being worked on, but no re-
sponses were sent back.

The Zimbabwe National Army’s director of
public relations, Colonel Aplhios Makatore, re-
ferred questions to the deputy director of army
public relations, Lieutenant Colonel Alex Zuva.
Zuva said the army would investigate the allega-
tions as it does not condone human rights viola-
tions by its members.

“When the army is deployed on border con-
trol operations they will be helping the police. As
the army we will just be supporting the police.

NewsHawks News Page 3

Issue 99, 23 September 2022

Marange human rights abuses in pictures

Kudzanai Chiradza (left) and Dzikamai Muzenda (right) of Mukono village in Marange were attacked by State security forces raid at Chingome Business centre in protected diamond area of Marange last friday
night on 16 September 2022. Hundreds of citizens found at local business centres in Marange by state security raids are being brutalised and some are left with life threatening injuries every month.These vicious
and notorious raids to flush out illegal miners are carried out at least 5 times a week . Tenda, Mashuga Shuga, Makotamo, Muchena and Chingome business centres are raided everyday. A lot of victims caught during
the raids are detained in 2 open cages at Mbada diamond base where they are forced to sleep for 3 days without blankets if they fail to pay bribes or raise a fine of US$10 equivalent of Zimbabwe dollars. Victims have
complained of inhuman treatment at the detention barracks. Women traders caught selling their merchandise have often complained of being molested by state security forces when climbing into their big military
trucks. Some break their legs whilst attempting to climb into the trucks. Locals are traumatised by state security brutality in protected diamond areas.

Members
of the
Marange
commuity
abused
by state
security
agents.
Thomas Ziruwi was assaulted
on Monday 12 September
2022 by 3 soldiers around 7
pm in Tonhorai village.The
soldiers jumped into Thomas's
skotch cart without his permis-
sion. Thomas was pulled from
the moving scotch cart and
severely beaten for questioning
the conduct of these soldiers.
Citizens in protected diamond
community of Marange are
suffering in silence from
wanton abuse by state security
forces. A lot of these cases go
unreported.

Page 4 News NewsHawks

Issue 99, 23 September 2022

ZACC accountability failures exposed

MOSES MATENGA The commission has failed to produce sup- It says Chiri was not availed with vouchers of receipts and disbursements for the year end-
porting documents on expenditures amount- that support cash payments, including fuel ed December 31, 2019 for audit examination:
THE Zimbabwe Anti-Corruption Commis- ing to US$1 116 548 in cash payments for purchases, vehicle maintenance, and sub-con- Zacc, Zec and ZMC [Zimbabwe Media Com-
sion (Zacc) and the Zimbabwe Electoral Com- the year ended 2019, for instance. For the year tracting of services totalling US$1 116 548. mission].”
mission (Zec) continue to refuse to avail their ending 31 December 2017, the report says the
financial assets for auditing, prompting Audi- commission also failed to produce documents “The implication is financial loss due to ma- “Therefore, l could not satisfy myself wheth-
tor-General Mildred Chiri to compel Treasury to support payments totalling US$2 million. terial irregularities and fraud that may not be er or not public funds received by these com-
to take action to ensure that the commissions detected on time. Fraudulent activities may go missions during the financial year under review
comply with the law. Regarding reconciliations and cash pay- undetected,” it says. were properly accounted for.”
ments, the Auditor-General’s report says Zacc
Zacc is tasked with combating graft while had not prepared back reconciliation state- ln her 2020 audit report, Chiri said Zec and There was no explanation from Zec as to
Zec is mandated with running credible, free ments on time for periods under review as they Zacc were found wanting by failing to submit why it failed to avail its books for audit. Zacc,
and fair elections. were done in retrospect. their annual statements of account. for its part, said it had availed its books, but
Chiri insisted that the books had not reached
Their financial books however remain in a “The years 2012 to 2015 bank reconcilia- “Section 32 (1) of the Public Finance Man- her office.
shambles despite being exposed again in Chiri’s tions were prepared in 2016 and 2017 bank agement Act (Chapter 22:19) requires every
2020 audits. reconciliations were still in progress at the time director of finance to prepare and submit an- “I acknowledge the response from the man-
of audit in 2019. As a result, the commission nual financial statements for audit,” the report agement (that Zacc had presented its reports),
In her latest report on the audit of Appro- had incomplete cash records. The cash records reads. however outstanding returns from the three
priation Accounts, Revenue and Finance State- only showed the payment side of transactions,” commissions were still to be availed for audit
ments and Fund Accounts of Zimbabwe for the the report reads. “Contrary to the above-mentioned pro- examination at the time of concluding this au-
year ended 31 December 2021, Chiri said the vision, as previously reported, the following dit,” the Auditor-General said.
Treasury Consolidated return submitted for commissions did not submit their statements
audit by the two commissions did not include
public financial assets for Zacc and Zec in clear
contravention of section 32 (1) of the Public
Finance Management Act [Chapter 22:19].

“Therefore, I could not ascertain the com-
pleteness of the Treasury Consolidated return.
The overall Public Financial Assets might be
understated thereby misinforming decision
makers. Treasury should enforce that all min-
istries, departments and commissions submit
statutory returns in order to promote trans-
parency and accountability,” Chiri said in her
latest report.

The authorities confirmed that Zacc and
Zec did not submit their statements of public
financial assets to Treasury for consolidation
purposes.

In a management response, the ministry of
Finance confirmed engaging the two commis-
sions to submit the required documents.

“In our submission of the consolidated re-
turn we indicated that these two Commissions
had not submitted their returns. We have now
requested them to make these submissions for
the financial years 2017, 2018 and 2019. These
returns will be taken into account and consoli-
dated for full disclosure of Public Financial As-
sets,” the management’s response reads.

In her 2020 audit, Chiri also red flagged
Zacc for failing to properly account for mil-
lions of United States dollars which could have
been misappropriated as its accounting books
have remained in a shambles for a decade —
since 2012.

Chiri warned the risk of fraud and theft
looms large at Zacc where public funds are
spent without supporting documentation for
payments for goods and services, and other
substantial disbursements.

According to Chiri’s 2020 audit on state
enterprises and parastatals, Zacc officials are
spending state funds without transparency and
accountability, with the commission's books
having been in a mess for 10 years.

NewsHawks News Page 5

Issue 99, 23 September 2022

Page 6 News NewsHawks

Issue 99, 23 September 2022

MOSES MATENGA Looting fears as ministries
secretly invest in companies
GOVERNMENT ministries are under scrutiny
for investing in private companies without the The ministry of Justice and Legal Affairs, for example, made investments in Colcom Limited before 2017.
knowledge of Treasury and also illegally dishing
out loans to struggling parastatals, raising corrup- Auditor-General flags ZBC as a recipient of an unsanctioned loan.
tion fears, given the shady nature of the transac-
tions. In its response, the management said the loan Corporation (ZBC) (Private) Limited was not dis- the Ministry seek clearance with Treasury. Clar-
of ZW$5 million advanced by the ministry of closed to Treasury. ifications were sought from this Ministry and
The Ministry of Justice, Parliamentary and Le- Information, Publicity and Broadcasting Services Treasury is now in receipt of documents on this
gal Affairs, for example, made investments in Col- to one of its parastatals, Zimbabwe Broadcasting “This loan was not disclosed in the Ministry’s particular loan.”
com Limited before 2017, which is unusual. Statement of Public Financial Assets; neither did

“The Ministry was later issued 11 048 shares
upon 100% takeover of Colcom Limited by Inn-
scor Company in year 2017. No share certificates
were availed for audit inspection and this invest-
ment was not disclosed in the Consolidated 38
Statement of Public Financial Assets for the years
ended December 31, 2017, 2018 and 2019,” Chi-
ri said.

“Government investments might not be trace-
able and fully accounted for. Treasury should ac-
count for the 11 048 shares invested in Colcom
Limited and returns realized from this investment
since year 2017.”

Authorities said the investment in Colcom
Limited by the Ministry of Justice and Legal Af-
fairs was “again not known by Treasury, neither
was it disclosed in the Ministry’s Statement of
Public Financial Assets.”

“We have now requested the Ministry of Justice
and Legal Affairs to avail the necessary documents
including Share Certificates so that we can record
them and adjust our records.”

It emerged that the ministry of Justice, Legal
and Parliamentary Affairs in 2007 invested in a
company called Pamberi/Qhubekani (Private)
Limited, but the investment was not properly dis-
closed, raising fears of possible corrupt intents.

“I noted that the Ministry of Justice, Legal
and Parliamentary Affairs formed and registered
a private company in year 2007 called Pamberi/
Qhubekani Investments (Private) Limited with an
initial capital of $40 000. The company focuses on
farming and ranching,” Chiri said.

“However, this investment was not disclosed in
the Consolidated Statement of Public Financial
Assets for the year ended December 31, 2019. In
addition, no Treasury Authority was availed for
audit inspection to support the formation of the
company.”

Chiri said the implications for such actions were
that the government would fail to realise financial
benefits from the invested public funds if the in-
vestment is not recorded and returns monitored.

“Treasury should account for the investment
made in Pamberi/Qhubekani Investments (Pri-
vate) Limited and dividends generated since year
2007. Treasury should put in place a system to
monitor and account for all investments made by
line Ministries, Departments and Agencies,” Chiri
said.

Authorities said the investment was a private
engagement by the Department of Prisons and
Correctional Services had not been disclosed to
Treasury.

“Treasury is now in receipt of the application
for condonation from the Ministry,” Chiri’s report
said.

There were also concerns over loaning by gov-
ernment ministries to parastatals, with Chiri flag-
ging the state-owned Zimbabwe Broadcasting Cor-
poration (ZBC) as a recipient of an unsanctioned
loan.

“The Ministry of Information, Publicity
and Broadcasting Services advanced a loan of
ZW$5 000 000 to Zimbabwe Broadcasting Cor-
poration (ZBC) at an annual interest rate of 5%
during the year ended December 31, 2019,” Chiri
said.

Chiri said the ministry did not report both the
principal amount and interest as a public financial
asset and this loan was also not disclosed in the
Consolidated Statement of Public Financial Assets
for the year under review.

“This was against the requirements of Section
29 (4) (f) of the Public Finance Management
(Treasury Instructions), 2019 which mandates the
Director Finance to prepare accurate accounts,” he
said.

“The exact amount of loans granted by the gov-
ernment might not be known with certainty if
they are not disclosed in the financial statements.
Treasury should ensure that the loan of ZW$5
000 000 advanced by the Ministry of Informa-
tion, Publicity and Broadcasting Services to ZBC
is properly recorded and reported in the Consoli-
dated Statement of Public Financial Assets,” Chiri
said.

NewsHawks News Page 7

Issue 99, 23 September 2022

Opaque million-dollar deals haunt councils

MOSES MATENGA l Big cities fail to submit books for audit

AT least 71 of Zimbabwe's 92 local authorities, Town House
including Harare, have failed to avail books for
audit by the Auditor-General as suspicion grows lection of revenue in pursuant of the agreements. but, 14 years later, the vehicles had not been re- management and those charged with gover-
that millions of United States dollars were being “As a result, the Councils were not benefiting turned. nance. The audit revealed that most weaknesses
looted, with municipalities flouting public pro- related to governance, procurement, revenue col-
curement legal requirements. from the arrangements. In addition, the Maron- Mwenezi RDC in Masvingo has failed to ac- lection and debt management. There is room for
dera Municipality contractor did not adhere to count for a donation of 16 411kgs of game meat improvement in accountability and transparency
Local authorities, government ministries and the agreed terms by not providing the initial in- from a local conservancy. in all the Local Authorities,” the damning Chiri
parastatals are required by law to submit their vestment capital as was required.” report further stated.
books for audit each year, but there is strong sus- The meat, Chiri said, was sold for ZW$93
picion some are deliberately violating the law in a The report also noted that two motor vehicles 418, but was not accounted for as per laid down “This can be achieved if, among other things,
ploy to avoid scrutiny and accountability. belonging to Matobo Rural District Council procedure. audit recommendations are implemented.”
were sent for repairs to a local company in 2007
In submitting her findings contained in Au- “The audit findings warrant the attention of
ditor-General Mildred Chiri’s report for the fi-
nancial year ended 31 December 2021 on local
authorities, Chiri said there has been evident ab-
sence of key policies, non-compliance with laws
and other regulatory provisions, poor contract
management and mismanagement of assets in
most municipalities.

This, in turn, has hampered service delivery
that remains at its all-time low across the country.

Previously, several local authorities, including
Harare, have been implicated in corruption and
looting of resources.

“Redcliff Municipality irregularly procured
motor vehicles and equipment worth US$847
962, through a twenty-one (21) hectares land
swap deal with a company in the business of
chrome processing,” Chiri said in her report.

“Mutare City Council circumvented pro-
curement procedures by acquiring four (4) pre-
owned motor vehicles through its subsidiary,
Pungwe Breweries (Pvt) Limited. In addition,
the City has not been preparing consolidated
financial statements despite owning a subsidiary
100%,” she said.

A number of local authorities, Chiri said,
made advance payments for goods which were
not delivered, with Marondera paying advance
for the purchase of 20 drums of catmix but only
eight drums have been delivered.

Karoi Town Council also failed to come clean.
“Karoi Town Council paid US$109 000 for
the supply of a refuse compactor truck in 2018
which was yet to be delivered. Marondera Rural
District Council also paid suppliers of a tipper
truck and a tractor backhoe loader in full and has
not taken delivery of the equipment,” Chiri said.
The report also showed that Marondera Mu-
nicipality and Karoi Town Council entered into
agreements with third parties for the provision of
traffic management systems among others but no
sufficient controls were put in place before col-

City House.

Page 8 News NewsHawks

Issue 99, 23 September 2022

Fuel abuse rocks municipalities

MOSES MATENGA l Thousands of litres for Zinara, devolution stolen

SEVERAL local authorities are failing to account council is required to maintain separate records meant for devolution used for other administra- was administered by a procurement officer. The
for thousands of litres of fuel allocated and dis- to ensure accountability.” tion functions will be reimbursed and redirected procurement officer had the rights to move fuel
bursed for specific projects in an exposé that con- towards service delivery.” from one card to the other without the cardhold-
firms how corruption is now rife within councils. At least 8 109 litres meant for road mainte- er’s knowledge,” Chiri said.
nance were purchased using devolution funds, In Redcliff in the Midlands province, the lo-
Just like parastatals, local authorities have also with Chiri insisting there was a risk of misap- cal authority has a murky fuel disbursement plan She said the risk of this is financial loss due to
become havens of corruption that have since propriation of fuel. manned by an individual and Chiri said this was fraud and recommended that the procurement
been red flagged by Auditor-General Mildred subject to manipulation and thousands of litres and management of fuel be performed by sepa-
Chiri in her latest report on municipalities and He said there was also a risk of failure to meet could be lost in the process. rate individuals.
town offices across the country. devolution targets.
“There was no segregation of duties as the In Mwenezi, Chiri said the local authority was
According to a report by Chiri on the finan- In its response, the local authority’s manage- procurement officer was responsible on the processing fuel benefits for heads of department
cial year ended 31 December 2021 presented to ment said the fuel purchased using devolution procurement and distribution of fuel. Fuel was outside the payroll and therefore not subjected
Parliament this week, several local authorities funds was meant for road maintenance. distributed through the Trek card system which to tax.
have failed to avail books of account for audit-
ing while others failed to account for resources, “A fuel reconciliation will be done and the fuel
mainly fuel, given to them for specific projects.

Marondera was one of the many found
wanting after failing to account for over
10 000 litres of both petrol and diesel.

“On fuel management, the Council main-
tained a register for liquid fuel where recipients
were signing as an acknowledgement of collec-
tion. However, 3 783 litres of petrol and 6 896
litres of diesel were issued without being signed
for in 2019,” Chiri said.

“As a result, I could not verify whether the fuel
was collected and used for council business. The
risk or implication is financial loss due to misap-
propriation,” the report added.

The Auditor-General recommended that is-
sued fuel be signed for while the local authority
management, in response, acknowledged the ob-
servation and attributed the lapses in control to a
staff shortage in the stores section.

In Bindura, the local authority is struggling
to account for fuel meant for the Zimbabwe
National Roads Authority (Zinara) projects
amounting to 1 054 litres for other council busi-
ness.

“However, I was not availed with reconcilia-
tions or evidence of reimbursement of the fuel.
The risk or implication is poor service delivery
due to shortage of fuel.

“Council should ensure that fuel is used for
the intended purpose,” Chiri said.

In its response, council management said a
reconciliation of the Zinara fuel usage will be
conducted and a reimbursement will be made.

It also emerged the local authority used devo-
lution fuel for its administration purposes and
did not maintain a register, exposing the fuel to
abuse.

“Devolution funds are meant to spearhead
development in communities and as such the

NewsHawks News Page 9

Issue 99, 23 September 2022

Land-for-debt deals rile Auditor-General
MOSES MATENGA

SETTLEMENT of debt and buying of service Auditor-General
vehicles by local authorities using vast tracts of Mildred Chiri
land has riled Auditor-General Mildred Chiri
who in her latest report described the practice “The equipment was full consideration in of service vehicles for executive management of on 31 August 2021 using stands with an offer
as inconsistent with the expectations of available exchange for 21 hectares of land by council to independent Commissions, State Enterprises letter dated 26 October 2020 valued at US$13
legislation and processes. Livetouch investments. I noted that the agree- and Parastatals (SEPs) states that applications to 348 for the mobile phones the municipality had
ment with Livetouch was entered into without purchase conditions of service vehicles for staff acquired.
In her report on local authorities, Chiri said going to tender, contrary to the provisions of members should be done through their line
most councils were entering in deals that have the Public Procurement and Disposal of Assets Ministry for onward scrutiny by the Office of the “No repayments had been made by November
seen them losing huge tracts of land. Act [Chapter 22:23]. Section 2.2 to 2.4.2 of the President and Cabinet (OPC) and approval by 30, 2021 to Estates Fund for the noted transac-
agreement provided that Livetouch would deliver Treasury prior to the confirmation of any pur- tions. In 2015, the Ministry of Local Govern-
“During the year under review, the Municipal- the equipment and vehicles,” Chiri said. chase order,” Chiri said. ment and Public Works through a letter dated
ity was financing recurrent expenditure through September 21, 2015 warned the Municipality to
swaps with stands,” Chiri noted on Marondera Indications are that the vehicles including a “I was not availed with documentation per- desist from utilising land for recurrent expendi-
Municipality. Faw Underpan truck, fire tender, Faw Underpan taining to these approvals on the purchase of the ture."
motor vehicle, among others, were not delivered. above-mentioned conditions of service vehicles.
“The Municipality was not using Estate funds Chiri said the council had tried through a
as specified by the Urban Councils Act [Chapter “A letter dated 20 March 2018 on conditions The local authority also paid Classic Mobile 2022 resolution to rectify the problem.
29:15], section 300. I observed that Storey Mar-
keting Hardware, a company that supplies pro- . . . Chiri faces grilling by MPs
tective clothing wrote a letter to the Municipality Some of the ministries which Chiri did not
requesting the amounts owed to the hardware to much was used in 2021. I ask, Mr Speaker sir, Speaker of Parliament present audit statements for have a record of
be paid by allocation of stands and the Munici- that you direct the Minister of Finance to come Jacob Mudenda corruption.
pality agreed. and give an explanation as to why there are no Mudenda took the matter seriously and
appropriation accounts for those particular ordered: “I would rather go by your last rec- The Health ministry in 2020 led by Oba-
“The value of the transaction was ZW$537 votes and why there is no overall appropriation ommendation, that is, the Public Accounts diah Moyo contracted controversial business-
113 and a low-density residential stand number account audit.” Committee must summon the Auditor-Gener- man Dellish Nguwaya to procure Covid-19
3929 measuring 1 300m2 was allocated.” al to find out why those Votes have not been equipment worth US$60 million in a deal that
“I also ask, Mr Speaker sir, that the Parlia- accounted for . . . That should be done within turned out to be opaque, leading to the minis-
She said Redcliff Municipality also entered mentary Public Accounts Committee be di- two weeks.” ter’s arrest and subsequent dismissal from gov-
into an agreement with Livetouch Investments rected to summon the Auditor-General so that PAC chairperson MP Dube confirmed to ernment.
(Private) Limited for the sale of land valued at she can explain before the Committee why the The NewsHawks that his committee will grill
US$847 962 in exchange for vehicles. 2021 audit report which has been put in our Chiri, but said he could not pre-empt how they In the year 2021, the Zimbabwe Anti-Cor-
emails does not meet those standards? This is so will do so. ruption Commission arrested two government
“Livetouch Investments (Private) Limited was important given the high levels of corruption in “I do not want to pre-empt issues. All I can officials from the Lands ministry after they
not in the business of supplying vehicles but in our country at the present moment,” said Biti. tell you is that the AG will appear before PAC pocketed US$3 million from the sale of 60 resi-
the business of Chrome processing. The vehicles on Monday,” he said. dential stands in Sally Mugabe Heights suburb.
involved in the transaction were four (4) Toyota
Hilux, one (1) Toyota Fortuner, one (1) Backhoe Pazvakavambwa was the deputy director of
loader, five (5) Nissan NP300 trucks, one (1) valuation and estate management under the
Grader, one (1) Skip bin loader, Toyota 18-seater ministry of Lands Agriculture, Fisheries, Water
bus, one (1) Toyota Quantum Ambulance and a and Rural Resettlement.
Fire tender.”
At the material time she was the chief valu-
In substance, Chiri said in her report, the Mu- ations officer in the ministry of Local Govern-
nicipality sold land and used the funds to pur- ment, Public Works and Urban Development
chase condition-of-service vehicles and service and responsible for proper administration and
delivery vehicles. validation of deeds of grants and transfer of
deeds.
By so doing, Chiri said, the local authority
flouted tender and procurement of service ve- Chimba was the former deputy director of
hicles that requires the involvement of the line valuation and estate management in the min-
ministry, in this case Local Government. istry of Local Government, Public Works and
Urban Development and also worked at the
BRENNA MATENDERE Evaluations Estates department as the registrar
of evaluation.
SPEAKER of Parliament Jacob Mudenda on
Tuesday ordered the Parliamentary Portfolio The Finance ministry’s spending has also been
Committee on Public Accounts (PAC) to sum- under the spotlight after it emerged in June this
mon Auditor-General Mildred Chiri for a grill- year that it overspent by over ZW$107 billion
ing over missing accounts of key six ministries in 2019 and 2020. This came out after minister
after a complaint was made by veteran legislator Mthuli Ncube approached Parliament propos-
Tendai Biti. ing a Financial Adjustments Bill, which sought
condonation for government expenditure of
Mudenda gave the PAC two weeks to sum- ZW$100.7 billion spent in 2020 and ZW$6.8
mon Chiri. billion for 2019.

However, in an interview with The News-
Hawks, PAC chairperson and Gweru Urban
MP

Brian Dube said the AG will appear before
the committee this coming Monday.

Rising in the House on a point of national
importance, Biti said there were possibilities of
corruption having occurred in the six ministries
as Chiri did not present to MPs how they used
public funds in the year 2021.

Last week, Chiri sent through audit state-
ments of government ministries to the MPs
through emails but left out the summary of ex-
penditures for such ministries as Finance and
Economic Development (vote 8); Lands,

Agriculture, Fisheries, Water, Climate and
Rural Resettlement (vote 14); Health and Child
Care (vote 16); Higher and Tertiary Education
(vote 17); Women’s Affairs, Community, Small
and Medium

Enterprises Development (vote 18), and
Home Affairs and Cultural Heritage (vote 26).
She also left out reports on how the Public Ser-
vice Commission used funds in the year 2021.

Biti said he was very concerned about the
omissions.

“If you go to the accounts we received Mr
Speaker Sir, you will see that there is no appro-
priation account that is commended on by the
Auditor in respect of about six key ministries…
The appropriation accounts are the accounts
that tell us how much was spent and received.”

“Overally Mr Speaker Sir, the audit report
does not have an overall appropriation of how

Page 10 News NewsHawks

Issue 99, 23 September 2022

MOSES MATENGA Army, political elites negotiate
shady, corrupt mining deals
COMMUNITIES across the country are being
neglected in negotiating mining contracts with CNRG executive director Farai Maguwu corruption allegations stemming from opaque
foreigners as the military and political elites procurement processes.”
take centre-stage for personal gain, an expert
has said. Commenting on the Zimbabwean govern-
ment’s tendency to blame its economic woes
Centre for Natural Resource Governance on Western sanctions, Stefanon said: “I want
(CNRG) executive director Farai Maguwu said to take a moment here to mention sanctions
the elites were abusing authority by inviting because the government of Zimbabwe blames
foreign syndicates and negotiating deals which sanctions for all the country’s economic woes.
do not to benefit communities but plunder re- Let me be clear on this point: the US targeted
sources. financial sanctions programme is not a trade
embargo and does not impede investment in
He was speaking at the Online Public Dia- Zimbabwe.”
logue Forum and book launch on Investigating
Foreign Investments in Zimbabwe organised by “The US sanctions programme targets 73 in-
the Information for Development Trust (IDT) dividuals and 37 entities. In other words, we
in partnership with SAPES Trust on Thursday. have sanctions on 73 people out of a population
of almost 16 million and 37 entities (business,
“In Africa, abundance of natural resources farms, corporations) out of a plethora of insti-
can lead to a poor economy, strife and even tutions. It’s not sanctions that have depressed
migration because of power and sometimes use Zimbabwe’s economy and it’s not sanctions
of guns by the powerful,” Maguwu, a human that led to a downward trend in FDI,” she said.
rights defender working mainly with vulnera-
ble communities, said. She said the US government was eager to
partner with the Zimbabwean people to help
“This happened in 2006 when we had di- create an environment conducive to responsi-
amonds in Chiadzwa, what did we do with ble investments that support the country’s sus-
them? The country’s political, security and mil- tainable development.
itary leadership invited foreign syndicates, most
of them organised criminal cartels, to register “There are currently 13 US companies based
companies and there was looting,” he added. in Zimbabwe and another 20 companies have
a US affiliation or relationship. We need more
The then president Robert Mugabe in 2013 US investment in Zimbabwe and, luckily, I
said over US$15 billion could have been looted am not the only person who thinks this way.
by diamond cartels involving high-profile poli- There is currently an effort underway to launch
ticians and the military. an American Chamber of Commerce in Zim-
babwe which aims to grow and further solid-
Several companies, some owned by foreign ify linkages between the US private sector and
nationals working with the military, were in- Zimbabwe.”
volved in mining in the diamond-rich Chiadz-
wa area in Marange, Manicaland province. Information for Development Trust (IDT)
national coordinator Tawanda Majoni said the
“First problem with foreign investments is media will continue to play a critical role in
how contracts are negotiated and agreed. You investigating and monitoring investments in
find that a lot of agreements in other coun- Zimbabwe. He urged the authorities to take
tries are negotiated on behalf of the country by necessary interventions in areas exposed by the
competent professionals, but in our situation media.
in Zimbabwe, the people who negotiate such
huge contracts do it for personal gain,” Magu- “The issues raised revealed by the investiga-
wu said. tions need urgent, systematic and sincere inter-
ventions,” Majoni said.
“Deals in Zimbabwe are negotiated in a po-
litical and militarised space, which gives no “As IDT, we hope to continue playing our
room for professional interventions. We only part from our modest corner by capacitating
hear announcements on state media of bil- the media to investigate foreign investments,
lion-dollar investments.” without fear or favour.”

Maguwu said even Parliament in several cas- Several companies, some owned by foreign nationals working with the military, were involved in mining in the diamond-rich Chiadzwa area in Marange.
es was unaware of the billion-dollar deals.

“No one knows how those deals were nego-
tiated, even Parliament doesn’t know. Most of
the deals are hot air, they do not bring anything
to the economy.”

“Such investments are harvests of thorns
and we make opaque deals not benefitting the
country.”

Maguwu said foreign investments in Zim-
babwe are not beneficial to communities and
destroy the environment.

He said the laws were not in favour of com-
munities as security agents were alert to block
any attempt to gather views from locals.

The deputy economic chief at the United
States embassy in Zimbabwe, Aja C. Stefanon,
said part of the embassy’s priority was to im-
prove engagement between the US private sec-
tor and Zimbabwean entrepreneurs to encour-
age more trade and investment between the
two countries.

The US embassy’s public diplomacy section
supported the programme that saw over 16
news stories being written on foreign invest-
ments in the country and the region.

“We welcome the government of Zimba-
bwe’s positive steps to encourage foreign in-
vestment, like the formation of the Zimbabwe
Investment Development Agency to improve
the ease of doing business and promote domes-
tic and foreign investment and the removal of
indigenisation requirements. So, that begs the
question: why isn’t there more investment?”
Stefanon said.

“Many of the elements that create an attrac-
tive investment climate for companies — US
companies specifically — remain a challenge
for the Zimbabwean government to put in
place or enforce. For example, endemic corrup-
tion presents a serious challenge to businesses
operating in Zimbabwe.”

“Zimbabwe’s scores on governance, trans-
parency, and corruption perception indices
are well below the regional average. US firms
have identified corruption as an obstacle to
FDI [foreign direct investment], with many

NewsHawks News Page 11

Issue 99, 23 September 2022

MARY MUNDEYA Parliament bosses summoned
over US$9 000 laptops scandal
PARLIAMENT’S Public Accounts Committee
(PAC) has summoned the House of Assembly's of goods without following tender processes and 22 000 litres (3 760 petrol and 18 260 diesel) fuel sury Instructions), 2019 which requires entities to
administration to give oral evidence on the recent failing to provide documentation for its expenses coupons distributed in March, June, October and keep complete record of fuel received and issued.
botched procurement scandal involving the ac- in contravention of the law. There was no evidence that records were reviewed
quisition of laptops exorbitantly priced at US$9 November 2020 had incomplete serial num- regularly by an independent senior official,” the
264.48 each. The Auditor-General noted that fuel meant for bers recorded,” the 2020 Auditor-General’s report report further reads.
members of Parliament was not properly noted reads in part.
This follows issues raised in the 2020 Audi- down by parliamentary staff and there could be Chiri also noted in her report that the procure-
tor-General’s report on Appropriation Accounts, reason to suspect looting as it was not clear what The report noted that the act was contrary to ment of goods in Parliament was not transparent.
Finance and Revenue Statements and Fund Ac- wasdisbursed and to who. the law and exposed parliamentary fuel to looting.
counts which uncovered massive fuel looting, bad She said it was open to manipulation as sever-
corporate governance and the flouting of tender “A review of the MPs’ fuel register revealed that “This was contrary to the provisions of section al items were procured without following tender
processes. 104(1) of the Public Finance Management (Trea-

Clerk of Parliament Kennedy Chokuda, the Blinart Investments before refurbishment (top picture) and now .
legislature's accounting officer, and directors from
various departments will appear before the Brian
Dube-led committee on Monday.

Recently, Parliament found itself in the eye
of a storm when leaked official communication
revealed that it had awarded Blinart Investments
(Private) Limited, whose chief executive is Eliz-
abeth Muchenje, a tender to supply 173 laptops
for a total of US$1 602 755.77, translating to
US$9 200 per gadget and Mid-End Computers
and Hardware Ltd another tender to supply 79
desktops valued at US$3 000 each.

Treasury quickly flagged and cancelled the
inflated tender and blacklisted the companies in-
volved.

Parliament, Treasury and Muchenje have is-
sued conflicting statements on the tender scandal.

“Treasury notes with concern that these suppli-
ers are charging US$9 264.48 and US$3 076.61
for a laptop and a desktop, respectively. These
USD prices have been exorbitantly inflated way
beyond those that are prevailing in the market and
hence, are not acceptable,” wrote Guvamatanga
in a letter that was copied to Finance minister
Mthuli Ncube, Chief Secretary to the President
and Cabinet Misheck Sibanda, Auditor-General
Mildred Chiri, Procurement Regulatory Authori-
ty of Zimbabwe chief executive Clever Ruswa and
other senior officials.

“Notwithstanding the high prices, the tender
award is in complete disregard of the Treasury
minute dated 3 August 2022, directing ministries
to ensure value for money for government and
hence, to rationalise all procurement processes
with a view to operating within the confines of the
willing buyer willing seller foreign exchange rate.”

“In this regard and to ensure value for money
for government, in line with the Public Finance
Management Act (Chapter 22:19) which em-
powers Treasury to manage and control resources,
Treasury directs that this tender be cancelled and
the concerned suppliers be blacklisted from any
future government procurement process,’’ the let-
ter further reads.

Chokuda in a Press statement released on 17
September said that he had directed the cancella-
tion of the tender.

“Our due diligence processes indicated that the
prices quoted were highly inflated. It is this par-
ticular point that on Friday 9th August 2022, I
as the accounting officer directed the Parliament’s
director procurement unit, in the presence of the
director audit, to initiate cancellation of the tender
to proceed with re-tendering as the quoted prices
were not justified. It is in this regard, that no con-
tract has been signed with any of the two suppli-
ers, and no payment has been activated in respect
of the two suppliers,’’ the Press release read in part.

Chokuda’s sentiments about ordering the can-
cellation of the tender on 9 August in the Press
statement Parliament later released are contrary to
the leaked official communication to Blinart In-
vestments (Private) Limited and Mid-End Com-
puters and Hardware Ltd dated on 29 August
which explicitly stated that: “I take this chance to
appreciate your efforts for the supply and delivery
of 173 laptops and 79 all in one desktops.”

“The evaluation committee was impressed by
your documentation and how you presented your
bid. The award for the supply and delivery of 173
and 79 all in one desktops was awarded to the
following bidders (Blinart Investments (Private)
Limited and Mid-End Computers and Hardware
Ltd) whose bid was more responsive to the pro-
posal requirements."

In light of this, effort by Chokuda to distance
himself from the procurement scandal means that
the director of the procurement unit disobeyed
and proceeded to award the tender at his own
peril.

Earlier this year, Parliament was also flagged in
the Auditor-General’s report for massive fuel loot-
ing, bad corporategovernance, the procurement

Page 12 News NewsHawks

Issue 99, 23 September 2022

processes. to ensure value for money for government and der at his own peril. Blinart Investments chief
“Goods worth ZW$12 906 032 were procured hence, to rationalise all procurement processes Earlier this year, Parliament was also flagged in executive Elizabeth Muchenje
with a view to operating within the confines of the of double payments to the suppliers and recom-
without following tender procedures. This could willing buyer willing seller foreign exchange rate.” the Auditor-General’s report for massive fuel loot- mended that the appropriation account should be
have been due to lack of training of staff assigned ing, bad corporate governance, the procurement adjusted to incorporate the direct payments.
to carry out procurement functions.” “In this regard and to ensure value for money of goods without following tender processes and “Follow up of direct payments should be done
for government, in line with the Public Finance failing to provide documentation for its expenses with ministry of Finance and Economic Develop-
On direct payments, Chiri said: “I noted that Management Act (Chapter 22:19) which em- in contravention of the law. ment to ensure that direct payments are posted to
a total of ZW$15 347 443 (US$613 893) direct powers Treasury to manage and control resources, relevant general ledgers,” the report added.
payments made on behalf of Parliament by the Treasury directs that this tender be cancelled and The Auditor-General noted that fuel meant for On payment of vouchers, Chiri said: “34 SAP
ministry of Finance and Economic Development the concerned suppliers be blacklisted from any members of Parliament was not properly noted documents with a value of ZW$14 220 243 were
were not disclosed in the appropriation account future government procurement process,’’ the let- down by parliamentary staff and there could be not availed for audit. I could not confirm with cer-
for the year 2020. ter further reads. reason to suspect looting as it was not clear what tainty the expenditure incurred.
was disbursed and to who. There was no evidence of supervision of the fi-
“The risks and implications are that the total Parliament’s Accounting officer Kennedy nance personnel by relevant senior officials to en-
expenditure figures disclosed in the appropriation Chokuda in a press statement released on the 17th “A review of the MPs’ fuel register revealed that sure records were being maintained properly.
account may be materially understated because of of September said that he had directed the cancel- 22 000 litres (3 760 petrol and 18 260 diesel) fuel “In the absence of proper and complete record
the direct payments which were not posted to the lation of the tender. coupons distributed in March, June, October and keeping, fictitious payments may be made.
relevant general ledgers.” November 2020 had incomplete serial numbers “Records for payment of vouchers should be
“Our due diligence processes indicated that the recorded,” the 2020 Auditor-General’s report properly maintained and availed for audit when
She said, consequently, there may be a risk prices quoted were highly inflated. It is this par- reads in part. The report noted that the act was required. Finance personnel should be supervised
of double payments to the suppliers and recom- ticular point that on Friday 9th August 2022, I contrary to the law and exposed parliamentary by senior officials to ensure proper record keep-
mended that the appropriation account should be as the accounting officer directed the Parliament’s fuel to looting. ing,” read part of the recommendations in part.
adjusted to incorporate the direct payments. director procurement unit, in the presence of the “Parliament has not been recording revenue in
director audit, to initiate cancellation of the tender “This was contrary to the provisions of section the system, neither was it performing bank rec-
“Follow up of direct payments should be done to proceed with retendering as the quoted prices 104(1) of the Public Finance Management (Trea- onciliations for revenue received. There was no
with ministry of Finance and Economic Develop- were not justified. It is in this regard, that no con- sury Instructions), 2019 which requires entities to evidence of communication between Parliament
ment to ensure that direct payments are posted to tract has been signed with any of the two suppli- keep complete record of fuel received and issued. and the PFMS Project office (public finance
relevant general ledgers,” the report added. ers, and no payment has been activated in respect There was no evidence that records were reviewed management system) on system challenges being
of the two suppliers,’’ the press release read in part. regularly by an independent senior official,” the faced. The internal audit department was inca-
On payment of vouchers, Chiri said: “34 SAP report further reads. pacitated since 2019 as it operated with only one
documents with a value of ZW$14 220 243 were Chokuda’s sentiments about ordering the can- officer instead of four. Interviews to fill the three
not availed for audit. I could not confirm with cer- cellation of the tender on the 9th of August in the Chiri also noted in her report that the procure- vacant posts were conducted in November 2018.
tainty the expenditure incurred. press statement parliament later released are in ment of goods in Parliament was not transparent. No appointments had been made at the time of
contrary of the leaked official communication to conducting the audit in September 2021. The risk
"There was no evidence of supervision of the Blinart Investments (Private) Limited and Mid- She said it was open to manipulation as sever- is that there may be risk of limited audit coverage
finance personnel by relevant senior officials to en- End Computers and Hardware Ltd dated on the al items were procured without following tender and inadequate monitoring of Parliament’s inter-
sure records were being maintained properly. 29th of August which explicitly stated that: “I take processes. nal controls.”
this chance to appreciate your efforts for the sup- Parliament, Chiri said, acted contrary to the
“In the absence of proper and completerecord ply and delivery of 173 laptops and 79 all in one “Goods worth ZW$12 906 032 were procured requirements of section 48 (3) of the Public Fi-
keeping, fictitious payments may be made. desktops.” without following tender procedures. This could nance Management (Treasury Instructions) 2019,
have been due to lack of training of staff assigned which stipulate that money should be deposited
“Records for payment of vouchers should be “The evaluation committee was impressed by to carry out procurement functions.” daily in the local bank for the credit of the ex-
properly maintained and availed for audit when your documentation and how you presented your chequer account. Parliament delayed in banking
required. Finance personnel should be supervised bid. The award for the supply and delivery of 173 On direct payments, Chiri said: “I noted that US$16 062 by a period ranging from 60 to 135
by senior officials to ensure proper record keep- and 79 all in one desktops was awarded to the a total of ZW$15 347 443 (US$613 893) direct days.
ing,” read part of the recommendations in part. following bidders (Blinart Investments (Private) payments made on behalf of Parliament of Zim- Meanwhile, legislators like Norton’s indepen-
Limited and Mid-End Computers and Hardware babwe by the ministry of Finance and Economic dent MP Temba Mliswa have been calling for a
“Parliament has not been recording revenue in Ltd) whose bid was more responsive to the pro- Development were not disclosed in the appropria- forensic audit for all procurement deals processed
the system, neither was it performing bank recon- posal requirements.” tion account for the year 2020. since 2013.
ciliations for revenue received. There was no evi-
dence of communication between Parliament and In light of this, Chokuda distancing himself “The risks and implications are that the total
the PFMS Project office (public finance manage- from the procurement scandal means that director expenditure figures disclosed in the appropriation
ment system) on system challenges being faced. procurement unit disobeyed and awarded the ten- account may be materially understated because of
the direct payments which were not posted to the
“The internal audit department was incapaci- relevant general ledgers.”
tated since 2019 as it operated with only one offi-
cer instead of four. She said, consequently, there may be a risk

Interviews to fill the three vacant posts were
conducted in November 2018. No appointments
had been made at the time of conducting the au-
dit in September 2021. The risk is that there may
be risk of limited audit coverage and inadequate
monitoring of Parliament’s internal controls.”

Parliament, Chiri said, acted contrary to the
requirements of section 48 (3) of the Public Fi-
nance Management (Treasury Instructions) 2019,
which stipulate that money should be deposited
daily in the local bank for the credit of the ex-
chequer account. Parliament delayed in banking
US$16 062 by a period ranging from 60 to 135
days.

Meanwhile, legislators like Norton’s indepen-
dent MP Temba Mliswa have been calling for
aforensic audit for all procurement deals processed
since 2013.report on Appropriation Accounts,
Fin ance and Revenue Statements and Fund Ac-
counts which uncovered massive fuel looting, bad
corporate governance and the flouting of tender
processes. Clerk of Parliament Kennedy Choku-
da, the legislature's accounting officer, and direc-
tors from various departments will appear before
the Brian Dube-led committee on Monday.

Recently, Parliament found itself in the eye of
a storm when leaked official communication re-
vealed that the institution had awarded Blinart
Investments (Private) Limited a

tender to supply 173 laptops for a total of
US$1 602 755.77, translating to US$9 200 per
gadget and Mid-End Computers and Hardware
Ltd another tender to supply 79 desktops valued
at US$3 000 each. Treasury quickly flagged and
cancelled the inflated tender and blacklisted the
companies involved.

“Treasury notes with concern that these suppli-
ers are charging US$9 264.48 and US$3 076.61
for a laptop and a desktop, respectively. These
USD prices have been exorbitantly inflated way
beyond those that are prevailing in the market and
hence, are not acceptable,” wrote Guvamatanga
in a letter that was copied to Finance minister
Mthuli Ncube, Chief Secretary to the President
and Cabinet Misheck Sibanda, Auditor-General
Mildred Chiri, Procurement

Regulatory Authority of Zimbabwe chief exec-
utive Clever Ruswa and other senior officials.

“Notwithstanding the high prices, the tender
award is in complete disregard of the Treasury
minute dated 3 August 2022, directing ministries

NewsHawks News Page 13

Issue 99, 23 September 2022

MARY MUNDEYA Zinara yet to recover looted funds

THE Zimbabwe National Road Administration Zinara board chairperson George Manyaya
(Zinara) is yet to recover millions of dollars it
lost through massive corruption, bad corporate tion of Zimbabwe Engineers, must endeavour Zinara CEO Nkosinathi Ncube failed to give of cases which also is attached to all those you
governance and maladminstration flagged in the to recover any amounts paid to contractors who a solid answer on the recovery of the US$70 raised. There is a case number that the Zimba-
2017 Grant Thornton forensic audit, although did not perform or render services in terms of million. However, he revealed that his organisa- bwe Anti-Corruption Commission (Zacc) is
the institution has implemented 90% of Parlia- their contracts and the recoveries were supposed tion had stopped paying Golden Roads. Armed currently looking at.”
ment's recommendations. to be made within a period of 12 months from with a contract, Golden Roads is challenging
the adoption of the PAC recommendations. the decision to stop payment. “In terms of recovery, really it's poor, but in
This was revealed when Zinara board chair- terms of follow-up it is happening and it's on-
person George Manyaya and the management During Monday’s oral evidence hearing, leg- “Our question is not on whether you (Zina- going, but recovery wise there isn’t much we can
led by chief executive Nkosinathi Ncube ap- islators took turns to inquire how much money ra) have a contract with them (Golden Roads), talk of,” Ncube added.
peared before the Public Accounts Committee Zinara had recovered from all the fraudulent ac- these are what we then term null and void or
(PAC) on Monday to give oral evidence on how tivities that had been highlighted by the audit legal fictions. You don’t get paid for signing a The recovery of US$1 223 640 that was
the authority has implemented the committee’s report. contract, you get paid for working, that's where overpaid when Zinara purchased graders from
recommendations aimed at dealing with the the honourable members' line of questioning is Univern Enterprises (Private) Limited was not
misgivings the Grant Thornton forensic audit “I am going to centre my questions around coming from. What job did Golden Roads do? responded to.
revealed. recovering of monies that we recommended that Them having signed a contract doesn’t matter.
you were supposed to recover, first one was for What was the US$70 million paid for and why It was also noted that Zinara’s average wage
The forensic audit report for the period 1 the overpayment of purchases of graders, if you haven’t you recovered it?" expenditure was 11% of total expenditure, be-
January 2011 to 31 March 2016 revealed the look at paragraph 53:1, you overpaid Univern ing 8.5% over the statutory limit and during the
government agency had lost millions of dollars Zinara board chairperson George Manyaya financial year 2013 that seven senior managers
through wanton financial waste and unsubstan- Enterprises (Private) Limited with US$1 223 responded to Dube’s question, saying: “I can received gym equipment worth US$4 000 per
tiated payments to board members, senior com- 640 and we recommended that you were sup- confirm that the board had a meeting on the person when there was no provision for gym
pany officials and dodgy procurement deals. posed to recover this money and we never heard 25th of February and we passed a resolution equipment in the contracts of the individuals.
you say anything about that recovery,” Mber- to terminate Golden Roads' contract and ever
The audit revealed senior managers system- engwa North legislator Marko Raidza said. since this management has come, we have not The auditors noted that the concerned em-
atically creamed off the road fund through allo- been paying them. So, what we have then done ployees already had a contractual paid benefit to
cating themselves huge, unapproved allowances “We said you were supposed to engage the in- in terms of the law, because we then realised that any gym or sports club of their choice. The gym
and bonuses — which were, in some instances, stitute of engineers so that you can validate your there was a contract signed by the former CEO allowance was not processed through the payroll
paid several times in a year. claims to the contractors like Badon, Drawcard, Chitukutuku, is we wrote to the Minister so and the payment voucher was not acquitted
Notify, Twalumba, Fremus and other contrac- that he can write to the Auditor-General”.
“Over and above this, Board Members were tors that you gave contracts to and they never In addition, for the period 2011 to 2013, a
paid fees and allowances in respect of any activ- delivered but you have paid them but we nev- Dube immediately voiced concern over the hair allowance was paid for every lady employ-
ity done in the name of Zinara. This included er heard you comment on the actions that you non-recovery of the money, saying: "And af- ee for a hairdo at She and He, Red Rose and
workshops, conferences and other functions. have taken on that.” ter terminating . . .? We are worried about the Ladies Hairdo saloons for a total amount of
Apart from huge board fees, board members US$70 million. Are you saying that we are not US$24 500, yet the female employees’ contracts
were the recipients of a number of unauthorised Norton MP Temba Mliswa concurred with going to get that money back? It's unjustified did not provide for this benefit and further, just
goods and payments which included the follow- Raidza’s sentiments, adding: “So if you look at enrichment, paying a crook for doing nothing like the gym allowance, this allowance was not
ing: 56 christmas hampers worth US$55 700 the Grant Thornton report on the DBSA loan, and it’s a lot of money”. processed through the payroll.
were bought from OK Mart on the 11th of De- it's very clear that DBSA has no knowledge of
cember 2018 from a CBZ account. Each board the facilitator of the loan, Golden Roads. They Mliswa defended the Zinara delegation, not- Parliament’s Public Accounts Committee
member received hampers valued at US$9 600. have been paid US$70 million. We are talking ing that it was difficult for them to be answer- thus recommended that current and former
The Christmas hampers were accounted for in about the money that was supposed to go to able for the US$70 million issue. He proposed board of directors who were unlawfully paid
the records of Zinara as expenditure for ‘office service the loan but it was paid to a facilitator that the Public Accounts Committee go after the allowances outside the terms of reference and
supplies’,’’ the report read in part. who DBSA has no knowledge of. Who are they signatories, members of the Zinara board as well contracts should be asked to refund what was
(Golden Roads) and what have you done to re- as the minister who approved that the US$70 paid to them within six months of the adoption
“On 22 August 2014, a payment of US$23 cover the money? million be paid to Golden Roads instead. of the committee’s recommendations, failure of
518 was made to Solution Centre for the pur- which would result in the institution of legal
chase of Ipads for 12 board members. This pur- Gweru Urban legislator and chairperson of Regarding the contractors who failed to com- action.
chase was not authorised by the parent ministry. the PAC committee quickly jumped in, saying: plete the special projects they were working on
At one stage on 5 September 2014 and with- “You may want to answer that directly without after having received full payments for the work, PAC commended Zinara which has imple-
out a reasonable explanation, a board meeting many stories behind to just say the fake facilita- as well as former Zinara workers who systemat- mented 90% of the committee’s recommenda-
was held in Victoria Falls. Board Members were tor we gave US$70 million was found and we ically creamed off the road fund through allo- tions on the great strides they have taken to fix
asked to complete two separate allowance forms managed to recover our money and we got them cating themselves huge, unapproved allowances the corporate governance issues flagged in the
totalling fees of US$5 140 paid to 12 Board arrested or we failed to recover anything at all. and bonuses, CEO Ncube said: “What we have Grant Thornton forensic audit, but bemoaned
Members. When Infralink was formed, three That’s what the honourable members want to and we are going to share with you is the list the non-recovery of millions of dollars lost
board members were seconded to the company, hear, at this point in time." through underhand dealings also in the same
namely Albert Mugabe, Davison Norupiri and report.
Engineer Jeffrey Nkomo. Without ministerial
approval a total of US$44 167 was paid to these
board members,’’ the report further read.

Regarding the issue of procurement, the au-
dit report revealed that millions of dollars were
lost through failure to go to tender, overpay-
ment of contracts or the manipulation and al-
teration of contracts after the tender board had
made approval subject to certain conditions or
the deliberate misleading of Zinara.

The parastatal executed special projects with
many questionable and dubious contactors
which cost the organisation the sums of US$71
487 896.21 and ZAR 31 452 102.53 outside
of its sole function of distributing resources to
road authorities who are in fact local authorities.

The contracts were drawn up illegally. In the
majority of the special projects, there was no de-
livery, no performance and no oversight by the
Zinara board and it was noted that the special
projects were nothing other than the looting of
resources by the executive of Zinara in conniv-
ance with corrupt contractors.

For instance, Twalumba Civils (Pvt) Ltd was
awarded contracts to the total value of US$10
195 669 for rehabilitation and construction
of five rural and urban road networks and two
bridges in Bindura rural, Bindura urban, Binga,
Bubi and Umguza, all of which it never com-
pleted.

Zinara also paid Golden Roads, a private
company incorporated in the British Virgin
Islands, about US$70m for securing a Devel-
opment Bank of Southern Africa (DBSA) loan
for the construction of the Plumtree-Mutare
highway by Group Five. However, DBSA and
Group Five highlighted that they had no idea
who Golden Roads is and had never dealt with
them.

It was therefore recommended that Zina-
ra, on a case-by-case basis, with the assistance
where necessary of experts, for instance the
Zimbabwe Engineers’ Council and the Institu-

Page 14 News NewsHawks

Issue 99, 23 September 2022

BERNARD MPOFU Pay up taxes now, govt corners
Zim dollar-starved companies
TREASURY has ordered the country’s tax collec-
tor Zimbabwe Revenue Authority to issue garnish- Finance ministry permanent
ee orders to local companies that fail to meet their secretary George Guvamatanga
quarterly tax obligations next week as some make
frantic efforts to raise their local currency balanc- the past eight months and government has taken deficits are policies in the right direction and have short lived.
es as new government measures fuel a liquidity relentless and significant steps to stabilise the ex- contributed to the narrowing of the parallel market “Due to the measures that have limited liquidity
crunch, The NewsHawks has established. change rate and control inflation,” Ncube said. exchange rate gap,” Dhaneshwar Ghura, an IMF
official, said after concluding a staff visit on Zim- in the economy, month-on-month inflation is ex-
Desperate to save the domestic unit from col- “Speculative behaviour will no longer be accept- babwe this week. pected to continue declining into single digit levels,
lapse reminiscent of the 2007 era, Zimbabwe’s fis- ed nor tolerated . . . The full ambit of government the industrial lobby group said in its latest research
cal and monetary authorities introduced several in- policy tools is being used to restore macro-eco- “Further efforts are needed to durably anchor note.
terventionist measures such as raising interest rates nomic stability.” macro-economic stability and accelerate structur-
for domestic borrowings and suspending payments al reforms. In line with recommendations from “However, unless the need for having a prop-
to government contractors and suppliers accused While Treasury appears optimistic that the the 2022 Article IV consultation, the near-term er market determined exchange rate is embraced,
of extortionist and forward pricing until a due economy may be on course, the International macro-economic imperative is to curb inflationary there is a risk that the current stability is temporary,
diligence exercise. The authorities also introduced Monetary Fund and the Confederation of Zim- pressures by further tightening monetary policy, as with threats of being disrupted once government
tradable gold coins to mop up excess liquidity and babwe Industries (CZI) say more should done to needed, and allowing greater exchange rate flexibil- starts paying contractors. There is need to ensure
tame inflation. make the economy tick. ity through a more transparent and market-driven that the willing buyer willing seller platform which
price discovery process, tackling FX market distor- is the official foreign currency market discovers a
Resultantly, the country’s inflation rate eased “The IMF mission notes the authorities’ efforts tions, and eliminating exchange restrictions.” true price of foreign currency to remove any op-
and the discrepancy between the official and par- to stabilise the local foreign exchange market and portunities for arbitrage which drive the parallel
allel market foreign exchange rates narrowed, al- lower inflation. In this regard, the recent tighten- The CZI said the prevailing stability may be market.”
though skeptics say this may be short lived. ing of monetary policy and the contained budget

The year-on-year inflation rate for August 2022
increased to 285% from 256.9% in July 2022,
gaining 28.1 percentage points.

The month-on-month inflation rate in August
2022 was 12.4%, shedding 13.2 percentage points
on the July 2022 rate of 25.6%. Between March
and June 2022, the month-on-month inflation
trend was threatening to reach hyperinflation lev-
els, peaking at 30.7% in June 2022.

Experts and industry leaders say a cocktail of
measures characterised by both monetary and fis-
cal policies resulted in month-on-month inflation
beginning to subside since July 2022.

Finance secretary George Guvamatanga said he
has turned down a proposal from local firms seek-
ing to meet the current Zimra quarterly payment
date (QPD) in United States dollars as the domes-
tic currency remains elusive due to the policy mea-
sures.

“The reality of it is that in a week’s time, the
minister will also be demanding his taxes for the
QPD and we have been approached by some com-
panies who are now asking to pay for some of those
taxes in United States dollars — to say we don’t
have Zimbabwe dollars, can we pay your corporate
taxes for the QPD and I have told then that I don’t
want their US dollars,” Guvamatanga said.

“I have re-directed them to the (Reserve Bank of
Zimbabwe) governor. I think there are three that I
have said go and talk to the governor — the gov-
ernor can take your forex and he will give you Zim
dollars. We are actually refusing to take taxes in US
dollars from certain players in the market who have
come on to say we don’t have Zimdollars, we can’t
go and borrow from our bank at 230%.

What was happening, the reality of that when
we said the economy was overheating, most com-
panies were taking a bet on the exchange rate,
thereby overstocking in their inventories, in their
goods.”

Guvamatanga projected that prices are this week
expected to trend downwards as companies dispose
of their inventory to boost their Zimbabwe dollar
holdings.

“After that, some of them were keeping forex,
then you have some who were a little bit brave, who
even went on to the stock exchange and the other
ones who were either brave or stupid who bought
real estate. So you find out that there is a company
which is saying we can’t pay our workers, they are
sitting on nine months' inventory, they are sitting
on foreign currency, they have got shares, they have
got buildings and we are saying either borrow at
230% or offload what you are holding,” he said.

“But the need to offload will certainly increase
this week. So this week you will see more prices
coming down, because they have to raise the mon-
ies for the taxes. I was talking to the Zimbabwe
Revenue Authority (Zimra) Commissioner-Gen-
eral to say can you put a crack team to ensure that
next week you collect our money without nego-
tiation. So if you don’t have the Zimdollars then
you risk being garnished by Zimra. So rather than
sitting on the shares, rather than sitting on the
stocks, rather than sitting on the foreign currency,
a smart treasurer will tell the MD at this stage that
let's raise Zimdollars.”

Finance minister Mthuli Ncube this week
threatened government contractors and suppliers
with sterner actions for what he termed “extortion-
ist pricing”, which he said was piling inflationary
pressure on the economy.

“Macro-economic stability has been on a major
downward risk to the budget and the economy.
Inflation has taken a huge toll on the economy in

NewsHawks News Page 15

Issue 99, 23 September 2022

JONATHAN MBIRIYAMVEKA Police dragnet nets 80 motorists

THE Zimbabwe Republic Police (ZRP) has Police are cracking down on public transporters who were formerly registered under Zupco
launched a blitz targeting unlicensed, unregis-
tered, uninsured and non-compliant vehicles
in Harare province, but is fretting about poten-
tial unrest which could explode as a result of a
clampdown on motorists at a time commuters
are facing transport problems.

Police also fear that some opposition activists
may take advantage of the blitz to ignite pro-
tests, but believe the blitz is necessary to account
for unlicensed vehicles which have been used in
many armed robberies and other crimes, ac-
cording to a memo written by the Officer Com-
manding Harare South, Chief Superintendent
Majojo.

More than 80 motorists have been caught in
the crackdown since the operation began on 19
September.

More 100 security officers have been de-
ployed for the operation.

On the public order threat, the police said:
“Anti-Government pressure groups are like-
ly to engage in violent demonstrations against
the operation in support of transport operators’
defiance and cause chaos citing transport chal-
lenges.”

On the security threat, the memo says: “The
general security situation in the district is rela-
tively stable; however, opposition malcontents
may take advantage of the situation and cause
political instability in the district during the op-
eration.

“Anti-Government pressure groups are likely
to engage in violent demonstrations against the
operation in support of transport operators’ de-
fiance and cause chaos citing transport challeng-
es,” an internal memo, looking at the risk says.

The opposition Citizens' Coalition for
Change (CCC) and civil society has in the past
been vocal against abuse of commuters by se-
curity forces during crackdowns against illegal
transport operators.

The ZRP has also instructed officers to arrest
commuters boarding unregistered, plateless and
illegal transporters commonly referred to as mu-
shika-shika.

“Most vehicles plying the country’s roads are
either not registered or the vehicle owners delib-
erately remove number plates to avoid identi-
fication. The unregistered and plateless vehicles
are being used to commit serious crimes such as
armed robbery, theft from motor vehicle, smash
and grab, hit and run, among others,” Majojo
said.

Police also said drivers of unregistered ve-
hicles and illegal commuter omnibuses were
causing chaos on the roads, putting the lives of
passengers at risk.

“Pursuing such motor vehicles may result in
accidents, and Police are blamed by the public.
It is difficult for law enforcement agencies to
identify owners of unregistered vehicles after
committing such crimes as they are not on the
Central Vehicle Registry (CVR) database.

“New owners of motor vehicles are not
changing ownership from the database to re-
flect the new vehicle owner. The nation is losing
much-needed revenue for road rehabilitation
through evasion of vehicle licensing payment,”
said the police officer.

In May, the law enforcers came under fire
after a commuter omnibus fleeing the police ran
over pedestrians, with no compensation made
to the victims.

Police are also cracking down on public
transporters who were formerly registered un-
der the Zimbabwe United Passenger Company
(Zupco), but have since left the franchise.

Other state institutions have also begun
launching their own blitz against motorists.

The Zimbabwe National Roads Adminis-
tration (Zinara) has announced a ban on unli-
censed vehicles from passing through tollgates
from 1 October.

“This is in line with the Vehicle Registry and
Licensing Act (Chapter 13:14) which states
that all vehicles which are deregistered, vehicles
with licensing exemptions, and vehicles without
number plates are not allowed to move around
Zimbabwean roads.

“As such, we … will allow motorists with val-
id insurance receipts to pay for their vehicle li-
cence discs at the tollgates,” read a public notice
by Zinara.

The Environmental Management Agency is
also targeting motorists without rubbish bins.

Page 16 News NewsHawks

Issue 99, 23 September 2022

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Training Session?

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NewsHawks News Page 17

Issue 99, 23 September 2022

BRENNA MATENDERERE Zimbabwean man arrested for
cigarette smuggling in Musina
A ZIMBABWEAN man, Lumbane Mvuku-
to (51), was arrested at Malalahoek Junction in Zimbabwean truck driver Lumbane Mvukuto who was arrested for smuggling illicit cigarettes. ily in South Africa, whose positions could be
Limpopo province in South Africa with illicit strengthened by policy and technical interven-
cigarettes worth about R7.4 million in a Japa- place in southern African politics, due to its role state responds to it, is a major feature of South tions, explores opportunities for such interven-
nese-made Hino truck valued R1.2 million with in the “state capture” scandals that characterised Africa’s, and to a lesser extent Zimbabwe’s, politi- tion, and assesses the practical solutions that can
R19 700 cash in his possession. politics in South Africa between 2013 and 2018. cal economy. This conflict now takes places in the be applied to combat illicit trade and tax evasion
midst of huge political transitions within the rul- in the tobacco industry. The paper contributes to
The arrest last week is just the tip of the iceberg “Indeed, the illicit tobacco trade occupies a ing parties of both countries. expanding awareness among policymakers and
of rampant tobacco smuggling between Zimba- prominent place in public debate in South Africa, the public of the nexus between the illicit trade in
bwe and South Africa, which is destroying legit- both about crimes that may have been committed “This case study maps the key dimensions of illicit goods, corruption, and organised criminal
imate cigarettes businesses, while depriving the in the last five years, and about how the current the illicit cigarette trade in Zimbabwe and South networks.”
two countries of billions in revenues. administration responds to the illicit economy Africa, including the key actors, the pathways of
right now,” the report says. trade and the accompanying ‘modalities’ of crim- The research puts context and background to
Police sources in the South African border town inality, as well as other important dimensions of the issue.
of Musina – 12 kilometres from the Zimbabwean “Conflict — overt and covert, violent and the illicit cigarette market in southern Africa.
side, Beitbridge – say Mvukuto was nabbed while non-violent — over who makes the most money “The illicit tobacco market in southern Africa is
carrying 507 boxes of Remington Gold cigarettes from illicit tobacco, who controls it, and how the “It then identifies ‘good-faith actors,’ primar- distinguished by two key facts: first, South Africa
which he claimed were oranges in a refrigerated provides the largest, most profitable, and there-
truck. fore most important consumer market and cig-
arette production hub; second, Zimbabwe is the
The truck’s registration number is DK40ZV biggest tobacco producer in the region and indeed
GP. the continent,” it says.

During subsequent enquiries, The NewsHawks “The trade is regionalised: besides Zimbabwe
was given the name of the owner of the consign- and South Africa, illicit cigarettes are also sold in
ment who is connected to top businesspersons in and trafficked through neighbouring countries
Zimbabwe involved in tobacco smuggling activi- Botswana, Namibia, and Mozambique. Smug-
ties. However, efforts to talk to the Harare-based gling routes can shift through different countries,
businessman were unsuccessful. depending on the enforcement regime, a feature
that complicates policy and enforcement respons-
A South Africa police report on the incident es.
says Mvukuto was arrested trying to smuggle the
cigarettes to the thriving illegal tobacco market in “However, because Zimbabwe, Namibia, Bo-
South Africa. tswana, and Mozambique have small populations
and lower rates of disposable income, the South
“A Zimbabwe national was arrested with illicit African market will remain the focus of cigarette
cigarettes worth R7 376 850. The estimated value smugglers interested in large profits.”
of the Hino truck is R1 200 000. The driver was
arrested and handed over to Musina South Afri- Presently the illicit cigarette market is domi-
can Police Service. He was also found with R19 nated by “genuine” contraband (as opposed to
700 of cash in his possession as well as a passport. counterfeit products, which were predominant in
the 2000s).
“During a routine roadblock with the members
of the South African Police Service, South Afri- Genuine contraband cigarettes are produced
can National Defence Force (SANDF) soldiers in legally registered factories under registered
impounded a Toyota Fortuner. Upon routine in- brands, with the profits coming from tax evasion.
spection, the police found that the colour and the The specific taxes evaded are either value added
Vehicle Identification Number of the car did not taxes or excise tax.
correspond with the disc on the windshield. The
value of the car is estimated at R530 000 and it However, the nature of “illicit” practices in
was recovered at Tshamutumbu Police Station,” a the tobacco industry must be understood more
South African police report says. broadly than as just the sale of untaxed products.

“At Masisi, the Masisi police commander re- A comprehensive understanding of the nature
quested SANDF soldiers for back-up after he re- and impact of illicit practices must also take into
ceived a tip-off of a hijacking. While busy with consideration the avoidance or evasion of corpo-
the briefing at the police station, the wife of the rate income tax, anti-competitive practices, and
hijacked man arrived informing SANDF mem- the contribution of illicit trade to facilitating cor-
bers that her husband is safe at Tshenzelani Vil- ruption and accelerating the erosion of state in-
lage, but the vehicle was gone. stitutions. All of these are marked features of the
illicit tobacco trade in southern Africa.
“Security forces were immediately dispatched
to the position of the woman’s husband who then Boxes of smuggled cigarettes in a Hino Truck.
took SANDF soldiers to the scene of the crime.
SANDF soldiers urgently followed on the tracks
which were leading towards the Limpopo River.
The Ford Ranger was recovered at Gumbu 1 and
was taken back to Masisi police station for further
processing. The estimated value of the vehicle is
R490 000.

“At Malalahoek Junction at the vehicle control
point, SANDF soldiers confiscated a Toyota Leg-
end 50 2.8 GD6 whose driver fled the scene

when stopped. The soldiers managed to appre-
hend the co-driver who was then handed over to
the police in Musina.

“The Toyota Hilux Legend is estimated at
R900 000 and the vehicle was recovered by Musi-
na South African Police Service.”

The following day, at the same Malalahoek
Junction soldiers arrested a driver who had arrived
in a truck carrying a consignment which he did
not want to have searched.

“An uncooperative truck driver arrived and re-
fused to open his truck when stopped by SANDF
members claiming that he was transporting or-
anges,” the police report says.

“However, soldiers insisted that the driver must
open the truck, and upon opening it under pres-
sure, they found illicit cigarettes and arrested him.
He is detained in Musina and was due to appear
in court facing smuggling charges.”

Smuggling of tobacco between Zimbabwe and
South Africa through Beitbridge and its environs,
as well as Musina and its localities across the bor-
der is rampant. A 2019 study done by an Ameri-
can think-tank Atlantic Council, titled The Illicit
Tobacco Trade in Zimbabwe and South Africa:
Impacts and Solutions, puts issues into perspective
and sheds light on the cross-border tobacco illegal
activities.

The research was conducted to explore how
the illicit trade in illicit goods supports organised
crime, corruption, and erodes state structures.
The illicit tobacco trade occupies a prominent

Page 18 News NewsHawks

Issue 99, 23 September 2022

MOSES MATENGA Anger as MPs, political opposition
activists clock 100 days in prison
PRESIDENT Emmerson Mnangagwa’s re-
gime is intensifying repression against vocal Professor Ibbo Mandaza. Hopewell Chin'ono.
critics ahead of the 2023 general elections.
Tsitsi Dangarembga. Brian Kagoro.
This comes as main opposition CCC se-
nior leader and MP Job Sikhala, legislator UK-based lawyer Brighton Matebuka. Job Sikhala.
Godfrey Sithole and 14 others from Nyat-
sime have been detained without trial for
more than 100 days on allegations of incit-
ing public violents following the murder of
their colleague Moreblessing Ali by a Zanu
PF linked accused.

Speaking during a Twitter Spaces discus-
sion hosted by journalist Hopewell Chin'ono
on Tuesday, several experts, including lawyers
and academics, said the Mnangagwa admin-
istration was stopping at nothing in its quest
to retain power. They said the the opposition
must act to avert mass arrests and a bloodbath
that could cripple its campaign strategy.

Sikhala, Sithole and 14 other activists were
arrested in June following violent clashes in
Nyatsime, Chitungwiza, after Ali was killed
by a Zanu PF activist.

Academic professor Ibbo Mandaza said the
ruling Zanu PF’s strategy ahead of 2023 is to
instill fear within the opposition circles.

“lt (the discussion) is taking place after
we raised a petition with Mnangagwa and
expressed concern on conditions the opposi-
tion MPs have been under, unconvicted but
placed with high-level criminals in leg irons,”
he said.

“These are political prisoners and this
means the opposition is virtually regarded as
outlaws. It is a feature of Zimbabwean poli-
tics since the 1980s.”

Mandaza said Zimbabweans are witnessing
the closure of democratic space amid fears
of more repression in the countdown to the
elections.

He said citizens are fighting a military state
that is preemptive in its approach, adding
that the incarceration of the 16 opposition
activists is indicative of that.

“This is an indication of what the state can
do and preempting what it is able to do ahead
of the 2023 elections. There will be further
attempts to decimate the opposition as you
have seen already,” he said.

Award winning author and filmmaker Tsit-
si Dangarembga said the arrests should worry
Zimbabweans, especially knowing that the
activists have spent more than 100 days in
prison without trial and repeatedly denied
bail.

She said bail is a constitutional right, but
the manner Sikhala and others were being
treated was a bad sign.

Over 30 000 people have signed a petition
on the situation faced by Sikhala and others.

Constitutional lawyer and human rights
activist Brian Kagoro said: “100 days in pris-
on is equivalent to a custodial sentence al-
ready and to be detained without trial for this
length of time is in itself punitive.”

Brighton Mutebuka, another lawyer who
spoke on the incarceration of the Nyatsime
16, said the message the regime was sending
home by continuous arrests and incarceration
of activists was to instill fear.

“I was horrified with what Professor Love-
more Madhuku said and l will dismiss it with
the contempt that it deserves,” he said on the
constitutional law expert’s comments on the
need for a political solution to Sikhala’s arrest.

“l consider that to be utter nonsense. Ul-
timately, the regime’s approach is meant to
cower the entire population of Zimbabwe into
submission. lf CCC was to go and negotiate
with the regime for Sikhala to be released, as
long as the regime’s tactics do not change, it
means there will be millions of other Sikhalas
who are just moments away from being taken
and unjustly incarcerated by the regime.”

“What should happen is the regime should
be challenged using both symmetrical and
asymmetrical tactics.”

NewsHawks News Page 19

Issue 99, 23 September 2022

August 1 shootings victims cry out for justice

NATHAN GUMA

MAXWELL TAURO cuts a depressed figure Maxwell Tauro (left) explains how he learnt of his son's (Challenge Tauro) death during the August 1 shootings in Harare after disputed election results.
as he struggles to explain events that led to the
murder of his son Challenge (20), who together LEAD president, Linda Masarira (left), analyses progress made on the Motlanthe Commission of Inquiry.
with five other victims was shot in Harare’s cen-
tral business district during the 1 August 2018 she said during the Press briefing. “It was a mere Crisis in Zimbabwe Coalition chairperson, Peter Mutasa addresses journalists on the August 1 killings.
protests. political process with no legal meaning. It was “We were told there was a multi-sectoral com- inter-ministerial committee to be working with
just a platform where people would say they had
“I was hurt! This is still fresh in my head like done something about the incident. Motlanthe mittee with different ministries. That committee civil society and the victims’ families for transpar-
it happened yesterday, and I feel like I am noth- himself is not a judge, and there was no tangible has not been functioning. We were expecting the ency,” said Peter Mutasa, CiCZ chairperson.
ing in this country,” Tauro told a press briefing information that was presented.”
on progress made in compensating victims of the
shootings that was held at The NewsHawks con- Masarira also said little has been done to inves-
ference room. tigate and bring to justice the perpetrators of the
1 August shootings.
“Government once called us in 2018, and
there was talk about compensation over the kill- “There was pictorial evidence . . . but no one
ings, but nothing has been done after that.” has been pinpointed to say they committed the
atrocities, which makes it difficult to hold to ac-
The victims’ families have fallen on hard times, count. There has not been any political will from
and are yet to be compensated, four years after all political parties to ensure that the victims are
the dreadful ordeal in which six unarmed citizens compensated.
were killed by the military in the wake of the 1
August shootings in which MDC-Alliance sup- “I heard there were three of four victims’ ben-
porters were protesting the delay in the release of eficiaries whose fees is being paid by social wel-
the 2018 general election results. fare. We all know social welfare pays less than is
required by the schools, which is not enough. I
The victims were identified as: Challenge Tau- think if government was sincere about compen-
ro (20), Jealous Chikandira (21), Brian Zhuwawo sating the victims, they would have set up a spe-
(26), Ishmael Kumire (41), Gavin-Dean Charles cial fund for those victims — or to just apolo-
(45) and Sylvia Maphosa (53). gise,” she said.

The incident has plunged Tauro, a farm labour- Crisis in Zimbabwe Coalition (CiZC), a civil
er based in Mazowe, into poverty, as his deceased society grouping that has been working with the
son Challenge was also the family’s breadwinner. victims’ families, says the government has not
done enough to compensate the victims’ families.
“I would always make prayers for him so he
could succeed. We relied on him. When Chal- “We have gathered that nothing has been done
lenge was killed, he was in town selling electronic in regards with communicating with families of
gadgets for he was a vendor at Harare’s Gulf [mar- the deceased. In our respective view, government
ketplace], and the income was important for the needed to have a structured approach.
family,” he says, whilst trying to hold back tears.

Tauro says he has been failing to make ends
meet since then.

“I earn US$60, which is little, considering
what I need for my family. Every month, we
might need at least US$120, which I cannot raise
alone. Challenge was one of the main people the
family was looking up to."

The Total Consumption Poverty Line (TCPL)
for Zimbabwe stood at ZW$23 749.44 per per-
son in July.

This means an individual would require that
much to purchase both food and non-food items
as at July 2022 in order not to be deemed poor.

Tauro is rapidly sliding into poverty.
“If I go to the grave where my son is buried,
most of the graves are now built-up. But, as for
me, I cannot even afford to buy a brick to make
him a proper grave. I have been getting solace
from non-governmental organisations that have
been providing help,” he says.
Allison Charles (55), from Arcadia suburb in
Harare who also lost her brother Gavin-Dean
Charles (48) on the same day, says the shootings
have taken a toll on the child he left behind.
“He left a daughter who is in high school. She
does not have a father … to pay her fees now. It is
not only a monetary issue, but she does not have
the emotional back-up that we had when we were
her age,” Allison says.
In 2018, she approached the High Court,
which asked the family to bring forward names of
possible beneficiaries to the compensation pack-
age, but nothing has materialised.
“I lost the case, and we did not take it up. I
asked myself how I could take on the government
to court and win.
“No one has contacted us. I feel like the story
has been swept under the carpet. The only time
we hear about this story is on August 1 every year
when journalists come to see — and of course re-
mind us — about what happened. Otherwise as
a family, we just sit back and suffer for the pain is
ours to bear,” she says.
She has also lost trust in the Kgalema Motlan-
the-chaired commission of inquiry which recom-
mended the compensation of the victims’ fami-
lies.
“I personally did not trust the commission of
inquiry,” she says.
President of the opposition Labour Econo-
mists and African Democrats (Lead), Linda Ma-
sarira says there is little political will by leaders
to speed up the compensation of the 1 August
shooting victims.
“It (the commission) was not a valid process,”

Page 20 News NewsHawks

Issue 99, 23 September 2022

How MPs are controversially ejected

MARY MUNDEYA Kuwadzana East MP
Chalton Hwende
HAVE you ever wondered why legislators Harare East MP
sometimes get kicked out of parliamentary Tendai Biti
sessions?

Well, generally how Members of Parlia-
ment in Zimbabwe are supposed to conduct
themselves during official processes is guid-
ed by what are known as standing rules and
orders.

This written set of rules provides for the
conduct of proceedings in the House, in-
cluding the passage of Bills, rules of debate,
the maintenance of order, appointment of
committees and other matters affecting the
operation of parliament.

During the current five-year parliamen-
tary term that began in 2018, one of the
most breached rules has been disobeying the
Speaker and disrupting the smooth flow of
parliamentary business.

If one is found in breach of the above-men-
tioned rules, the Speaker has the discretion
to take a course of action that restores order
in the House, even if it means chucking out
an MP.

As a result, a sizable number of indepen-
dent and opposition legislators have found
themselves being ejected out of Parliament.

Concerns have however been raised over
how the Speaker’s ejection of legislators is
being used as a way of muzzling outspoken
independent and opposition party MPs. No
legislator from the ruling Zanu PF, no-mat-
ter how rowdy they might have behaved, has
been kicked out of a session.

Below is a compilation of some instances
where MPs were booted out of Parliament
after having spoken about controversial is-
sues:

Hwende on the Pomona
waste-to-energy deal

On 13 July 2022, Kuwadzana East MP
Chalton Hwende was booted out of Par-
liament by Speaker Jacob Mudenda after
insisting that more time was supposed to
be dedicated to debating the controversial
US$344 million Pomona waste-to-energy
deal that had been rejected by Harare City
Council.

Biti on the Pomona waste-to-energy
deal

Harare East legislator Tendai Biti was
ejected from Parliament after demanding
that Local Government deputy minister
Marian Chombo respond to his submissions
on the controversial deal.

Madzimure on curtailed human rights
On 13 July, three Citizens' Coalition for
Change (CCC) legislators, namely Hwende,
Murisi Zwizwai and James Chidhakwa, were
ejected from Parliament’s Wednesday ques-
tion-and-answer session after they stood in
support of Kambuzuma MP Willias Madzi-
mure who had questioned the detention
of the selective application of the law over
members of their party detained at Chiku-
rubi Maximum Security Prison.

Mliswa on Rusununguko
On 17 August 2022, independent legis-
lator Temba Mliswa was kicked out of Par-
liament for attacking the Defence minister
Oppah Muchinguri-Kashiri after he de-
manded an explanation on an army com-
pany, Rusununguko Nkululeko Holdings,
which he said was being used to steal re-
sources of the country by Zanu PF bigwigs.

Mliswa, Nduna murder probe
Norton legislator Mliswa was on 13 Feb-
ruary 2019 dragged out of Parliament when
he had a fallout with deputy Speaker Tsitsi
Gezi whom he accused of siding with Zanu
PF Chegutu West legislator Dexter Nduna.

NewsHawks News Page 21

Issue 99, 23 September 2022

Trust no one with cash issues — Police

PRISCA TSHUMA . . . armed robbery cases on the increase
. . . public trust in banking system eroded
POLICE have warned against trusting rela-
tives, workers or friends with information re- National police spokesperson Assistant Commissioner Paul Nyathi
lating to huge sums of cash kept in offices and
homes, saying the increase in armed robbery Police in Zimbabwe are threatening a shoot-to-kill policy in dealing with armed robbers.
cases is a result of coordinated efforts and
tipoffs with hijackers.

This follows a spike in the number of armed
robbery cases, with more than 695 cases re-
corded this year alone compared to the 640
during the corresponding period last year.

Many armed robbery cases have involved
serving and former members of the police and
military.

Police have also threatened a shoot-to-kill
policy in dealing with armed robbers who
have become a menace targeting individuals
and businesses across the country in well-co-
ordinated raids.

National police spokesperson Assistant
Commissioner Paul Nyathi told The News-
Hawks this week that most of the cases em-
anated from victims having shared informa-
tion with relatives, workers or close friends,
unwittingly inviting armed robberies in the
process.

“It is clear information is leaking to crim-
inals who in most cases monitor the targets,”
Nyathi said.

“People should be alert to avoid sharing in-
formation on financial transactions with each
and every person. This includes employees,
drivers and relatives.”

He however said people should develop a
culture of keeping money in banks to avoid
trouble from the robbers.

“Money must be banked with financial in-
stitutions and only small amounts kept for
particular transactions on daily activities,” he
said.

Nyathi said police will continue to fight
armed robberies adding to that since January
this year, over 100 suspects were arrested and
28 of these have been convicted by the courts
while others are on remand.

Last month, President Emmerson Mnan-
gagwa introduced an amnesty for illegal and
unlicensed firearms as a way of curbing crim-
inality.

“As of 19 September, 2022, a total of 455
firearms have been surrendered to the police,”
Nyathi said.

Knives and imitations of firearms, Nyathi
said, were also being used by the robbers to
scare away people.

Observers have attributed the rise in armed
robbery cases to a failing economy that has
seen many without jobs, but desperate to eke
a living.

Poor remuneration for civil servants, as
well as the police and military who at times
have access to firearms was also cited as a key
factor in the rise of armed robbery cases.

Zimbabwe’s annual inflation for the month
of August stood at 285%, the highest record-
ed in 2022.

Many in Zimbabwe are in fear of the hy-
perinflationary environment in 2007 that saw
many losing savings due to changed economic
and political circumstances.

Several gang leaders involved in armed rob-
bery cases have so far been arrested and they
include Mussa Taj Abdul who was subdued
during a a police raid in Beitbridge last year.

He is now linked to a spate of robberies
that occurred across the country and has been
on the police wanted list for over a decade.

In December last year, a former Criminal
Investigatione Department detective shot
and killed three armed men who stormed his
home and held his family hostage during a
robbery.

It later emerged the armed robbers mistak-
enly stormed Joseph Nemaisa’s home in Ha-
rare’s Chadcombe suburb, but were targeting
a different house following a tipoff.

The robbers had planned to raid the home
owned by a local businessman, about five
houses away from Nemaisa's residence after
receiving intelligence on cash transactions
from a worker.

Page 22 News NewsHawks

Issue 99, 23 September 2022

BERNARD MPOFU Critical indicators point towards
Mnangagwa’s governance failure
WHILE authorities in Zimbabwe are looking
at the economy through rose-tinted lenses since President Emmerson Mnangagwa
President Emmerson Mnangagwa grabbed power
from the late long-standing, former leader Rob- atile despite some recent stabilisation in parallel this was his 'open for business' mantra, without ular the price of fuel, so the US dollar inflationary
ert Mugabe in 2017, key indicators are however market foreign currency exchange rates. Official actually providing either the political or economic pressures have been receding,” Chitambara said.
pointing south. (auction and interbank) exchange rates contin- infrastructural guarantees the international com-
ue to increase, recording 10 % and 6% increases munity wanted. Very little Western investment On the human rights front, many civil society
Mnangagwa took power following a military between July and August, respectively,” FewsNet came,” Chan said. organisations and Western governments have red-
coup, promising to break with the past and carry warns. flagged the obtaining situation, saying Zimbabwe
out several political and economic reforms. “Finance minister Mthuli has been trying currently ranks lowly in the upholding of civil
“Though fuel prices have reduced somewhat, to handle the economy in straight classical eco- liberties.
Riding on international goodwill, Zimbabwe’s prices of most goods and services continue to in- nomics textbook fashion. But the problem is that
new leader named his new chapter the Second crease in both USD and ZWL terms driven by Zimbabwe is not a textbook country and classical An upsurge of politically motivated arrests
Republic and undertook to normalise relations both international and domestic factors. As a re- economics depend on structures in place. He has such as the detention of opposition lawmaker Job
with the international community anchored by sult, the cost of living continues to increase and not sought to prioritise the informal sector eco- Sikhala has been cited as a sign of Mnangagwa’s
his "Zimbabwe is open for business" mantra. He additional households are falling below the pov- nomic activities, wanting instead to tax the sector insincerity in addressing the country’s checkered
made an ambitious pledge to make Zimbabwe an erty lines. without compensating incentives. human rights record. Sikhala, who served as slain
upper middle class economy by 2030. Not many opposition activist Moreblessing Ali’s lawyer, has
are convinced that this will be achievable and crit- “Most typical livelihoods are constrained and “The economy will be worse by the time of been locked up for more than 100 days on charges
ics say tot facienda parum factum (So much to expected to remain so throughout the outlook the elections in 2023. Parts of Zimbabwe remind of inciting violence following Ali’s murder.
do, so little done). period. Poor households are expected to cope by me of what I found in Ghana just before the sec-
employing consumption coping strategies and by ond coup of Jerry Rawlings, and what I found in As 2023 general election nears, spin doctors
Several memoranda of understanding were either intensifying existing livelihood strategies or Uganda in the wake of Idi Amin.” and government sympathisers have gone into
heralded and signed, but many are yet to be con- extending to other measures or activities such as overdrive, gloating over infrastructure projects
summated. Some political and economic analysts petty trading, informal mining, and barter.” Prosper Chitambara, a senior researcher at local such as the rehabilitation of the Harare-Beit-
contend that whether one is looking at mac- think-tank Labour and Economic Development bridge highway and Robert Gabriel Mugabe In-
ro-economic fundamentals — inflation, interest Stephen Chan, a professor of international pol- Research Institute of Zimbabwe, said while Unit- ternational Airport upgrade. They say that apart
rates, exchange rate, production, unemployment, itics at the University of London in the United ed States dollar inflation is receding, confidence from facilitating international trade, the two proj-
trade, policies, growth; or human rights, food se- Kingdom, said little gains had been achieved fol- is a key ingredient missing in Mnangagwa’s ad- ects have created employment opportunities for
curity and cost of living — President Emmerson lowing Mugabe’s ouster. He said Zimbabwe econ- ministration. thousands.
Mnangagwa has been a failure. omy has become a “multi-faceted disaster” with
the “world's highest inflation rate and the world's “We did experience US dollar inflation at the Noble as that may be, Zimbabwe still has one
Figures from the World Bank show that by his highest food inflation rate”. height of the Russia-Ukraine crisis when we saw of the highest unemployment rates in the region,
midterm, nearly half of the country’s population commodity prices increasing quite significantly, which is now being mirrored through drug and
was living under penurious conditions due to “President Mnangagwa inherited an economy particularly the price of fuel. But now the prices of substance abuse among the youth and high levels
successive years of economic contraction mainly already in rapid decline. His attempt to address commodities have actually been easing, in partic- of crime and vice in urban centres.
caused by climate change-related factors, external
shocks and poor economic policies.

While the country nation, once regarded as the
breadbasket of Africa, perennially imports staple
from neighbouring countries due to a dramatic
plunge in agricultural output, food prices have
shot through the roof. The country now has the
highest food inflation, surpassing war-torn coun-
tries like Somalia.

While month-on-month inflation has been
slowing down, poverty continues to stalk urban-
ites as food prices go beyond the reach of many.
On a monthly basis, prices rose 12.4%, the least
in five months, following a 25.6% jump in the
previous month. The economic headwinds have
not spared the Zimbabwe dollar.

The domestic currency continues to plunge
even after the central bank announced a cocktail
of measures, including novel gold coins to stabilise
the economy. But it is food insecurity that clearly
demonstrates Mnangagwa's botched tenure.

Staple grain availability at both household and
market levels is lower than usual, with reliance on
maize-meal purchases higher than normal for this
time of the year.

Seasonal grain deliveries to and stocks at the
Grain Marketing Board are also low, with private
sector imports reportedly now beginning to ar-
rive. The government has indicated it will rely on
domestic reserves for commercial and humanitar-
ian needs.

Amid all this, the macro-economic situation
remains volatile despite recent stabilisation in
parallel market foreign currency exchange rates.
Official (auction and interbank) exchange rates
continue to increase, recording 10% and 6% in-
creases between July and August, respectively.

According to the Famine Early Warning Sys-
tems Network (FewsNet) outlook update for
August, Zimbabwe’s food situation remains
dire in most parts of the country following low-
er-than-expected grain output.

“An increasing proportion of households in
deficit-producing areas are experiencing crisis
outcomes as the 2022/23 lean season sets in ear-
lier-than-normal due to below-average 2021/22
harvests and macro-economic instability,” reads
the report.

“Meanwhile, near-average 2021/22 harvests
and above-average 2020/21 carryover stocks
in some surplus-producing areas will continue
to drive minimal outcomes. Stressed outcomes
will prevail through January 2023 in those sur-
plus-producing areas negatively impacted by the
poor progression of the 2021/22 rainfall season
and in urban areas due to high prices and poor
access to basic commodities.”

Though fuel prices have declined somewhat,
prices continue to increase in both US dollar and
Zimdollar terms, driven by both international
and domestic factors. As a result, the cost of liv-
ing continues to increase and more households
are falling below the poverty datum line.

“The macro-economic situation remains vol-

NewsHawks News Page 23

Issue 99, 23 September 2022

Implement more reforms, IMF tells Zim

BERNARD MPOFU Dhaneshwar Ghura led the IMF team

THE International Monetary Fund (IMF) says
Zimbabwe should implement more economic
and political governance reforms, warning that
the outlook remains uncertain despite several
measures announced by authorities to stabilise the
floundering economy.

Fiscal and monetary authorities have in recent
months implemented a cocktail of interventionist
measures to defend the value of the domestic cur-
rency and tame rising inflation.

The year-on-year inflation rate for August
2022 increased to 285% from 256.9% in July
2022, gaining 28.1 percentage points.

The month-on-month inflation rate in Au-
gust 2022 was 12.4%, shedding 13.2 percentage
points on the July 2022 rate of 25.6%. Between
March and June 2022, the month-on-month in-
flation trend was threatening to reach hyperinfla-
tion levels, peaking at 30.7% in June 2022.

An International Monetary Fund (IMF) team
led by Dhaneshwar Ghura conducted a staff vis-
it in Harare from 12 to 19 September 2022 to
discuss recent economic developments and the
economic outlook.

The multilateral lender said while Zimbabwe’s
economy has shown resilience in the face of sig-
nificant shocks, Russia’s war in Ukraine, the poor
rainfall, and price pressures are adversely affecting
economic and social conditions in the southern
African nation, already battered by the Covid-19
pandemic.

“Uncertainty remains high, however, and the
outlook will depend on the evolution of external
shocks, the policy stance, and implementation of
inclusive growth-friendly policies,” Ghura said in
a statement.

“The IMF mission notes the authorities’ efforts
to stabilise the local foreign exchange market and
lower inflation. In this regard, the recent tighten-
ing of monetary policy and the contained budget
deficits are policies in the right direction and have
contributed to the narrowing of the parallel mar-
ket exchange rate gap.

“Further efforts are needed to durably anchor
macroeconomic stability and accelerate structural
reforms. In line with recommendations from the
2022

Article IV consultation, the near-term mac-
roeconomic imperative is to curb inflationary
pressures by further tightening monetary policy,
as needed, and allowing greater exchange rate
flexibility through a more transparent and mar-
ket-driven price discovery process, tackling FX
market distortions, and eliminating exchange re-
strictions.”

The RBZ’s quasi-fiscal operations, the IMF
further said, should be transferred to the budget
to enhance transparency, improve the conduct of
monetary and exchange rate policy, and enhance
central bank independence.

“Structural reforms aimed at improving the
business climate and reducing governance vul-
nerabilities are key for promoting sustained and
inclusive growth. Durable macro-economic sta-
bility and structural reforms would bode well for
supporting Zimbabwe’s development objectives
as embodied in the country’s National Develop-
ment Strategy 1 (2021-2025),” he said.

While Zimbabwe cleared its arrears with the
IMF in 2016, the country remains in debt distress
making it ineligible to access loans from interna-
tional financial institutions.

“The IMF is, however, precluded from provid-
ing financial support to Zimbabwe due to unsus-
tainable debt and official external arrears,” Ghura
said.

“A Fund financial arrangement would require
a clear path to comprehensive restructuring of
Zimbabwe’s external debt, including the clearance
of arrears; a reform plan that is consistent with
macroeconomic stability, growth and poverty re-
duction; a reinforcement of the social safety net;
and governance and transparency reforms. Inter-
national reengagement remains critical for debt
resolution and access to financial support.”

Official figures from Treasury show that the
country remains in debt distress, with an unsus-
tainable Public and Publicly Guaranteed (PPG)
external debt overhang amounting to US$14.4
billion as at the end of December 2021.

Page 24 International Investigative Stories NewsHawks

Issue 99, 23 September 2022

InInvteesrtniagtaiotinvaelStories

Swiss-based fund AOG poured
cash into joint accounts with

African politicians

IN the 1990s, executives at an ob- years later to China’s state oil giant for Now, OCCRP has uncovered new accounts were also intended as pay- The following year, shortly after
scure energy company bribed Nige- $7.2 billion. evidence that executives at the Add- ments for government officials. Addax listed its shares on the Toron-
rian officials to obtain spectacularly ax and Oryx Group (AOG), the in- to Stock Exchange, the same eleven
profitable oil mining licenses. Now, Years later, a French court case un- vestment firm that owned Addax, In total, four employees of Addax people opened four new Credit Suisse
the Suisse Secrets project reveals that covered some of the hidden reasons maintained secret financial ties with and AOG held five joint accounts accounts together.
the company’s parent firm poured behind the company’s sudden suc- politicians in West and Central Africa with these politicians at Credit Suisse,
money into Swiss bank accounts held cess: Addax executives testified that as Addax prospered. Like the bribes, starting as early as the mid-1990s ac- AOG acknowledged that the bank
jointly by its employees and African they had paid $5 million in bribes this money was also routed through cording to the leaked Suisse Secrets accounts existed, but said they were
elites, including a Nigerian spy chief. into the Swiss bank account of Nige- the Swiss banking system. data. Some remained open well into “not secret accounts but rather bank
ria’s oil minister during the military the last decade. The account-holders accounts which were opened, held
In May of 1998, an obscure com- dictatorship of General Sani Abacha, Among those to benefit were Uma- included one of Shinkafi’s long-time and operated by AOG group entities
pany called Addax Petroleum came who ruled the West African nation ru Ali Shinkafi, a former Nigerian associates, as well as multiple political and which have been used for usual
from nowhere to take Nigeria’s oil for five years after seizing power in a spy chief whose ties to the company figures in Senegal and the Republic business purposes,” including to pay
industry by storm, scoring one of the 1993 coup. were not publicly reported. Shinkafi of the Congo, countries where Addax out dividends or carry out share buy-
most lucrative deals the country had also held a valuable stake in AOG by and AOG also operated. backs.
ever seen. The payments, testimony showed, 2015, according to a share register
were made to secure the oil licenses obtained by OCCRP. The first joint account, which had They said the individuals on the
Despite having no record in oil of Ashland Inc., an American energy eleven signatories, was opened in accounts had become AOG share-
extraction, Addax scooped up four firm that had fallen into dispute with Olanrewaju Suraju, a Nigerian an- 1994, the same year Addax Petroleum holders for “modest amounts,” either
valuable oil exploration and produc- Nigerian authorities. Addax had also ti-corruption activist and chairman of was founded. The account was worth as part of an incentive program for
tion licenses. The deal set off a spec- set up Swiss accounts for Abacha’s Human and Environmental Devel- 62 million Swiss francs ($53.32 mil- employees and directors or at their is-
tacular rise for the Swiss-based firm, two oldest sons, and used Swiss banks opment Agenda, said that given Add- lion) in 2005, the year Addax incor- sued nominal value during the com-
which was registered on the tiny Ca- to funnel millions in illicit “commis- ax’s track record of bribery to people porated in Canada and paid out tens pany’s first fundraising round. At the
ribbean island of Curaçao. After go- sions” to Nigerian officials, the case surrounding the Abacha government, of millions of dollars in its first pub- time, “none of them was holding a
ing public in 2006, it was sold three showed. it was possible the newly discovered licly disclosed dividends. political mandate,” the company said.

NewsHawks International Investigative Stories Page 25

Issue 99, 23 September 2022

David Mühlemann, a financial Swiss banks. One such account was With the lucrative licenses in hand, Shinkafi, whose name has never been As Nigeria transitioned to a de-
and legal expert at Swiss NGO Public at Credit Suisse. Opened under the Addax grew quickly. By 2005, it was publicly connected to AOG or Add- mocracy after Abacha, Shinkafi held
Eye told OCCRP that AOG’s expla- name “Omoni Amalfegha,” a known Nigeria’s largest independent oil ax, was a signatory to all five Credit onto the joint Credit Suisse accounts
nation about the joint accounts was alias for Dan Etete, it was soon filled producer, churning out over 65,000 Suisse accounts. and ran for vice president during
not convincing, noting that there are with $3 million in transfers. (This ac- barrels of crude per day and bringing the 1999 presidential election. All
other, more standard ways of paying count did not appear in Suisse Secrets in nearly $470 million a year in rev- A former police officer, Shinkafi the while, he was also accumulat-
dividends. data.) enues. became the head of the National Se- ing shares in AOG. According to a
curity Organization — now known share register obtained by OCCRP,
“It’s easy to transfer money from Granier-Deferre and Dan Etete The same year, Addax paid out as the Department of State Security Shinkafi owned 500 of the company’s
one account to another. It’s not magic were eventually both convicted of ag- $85 million in dividends to its share- — in 1979. He held the post until “class A” shares in 2015, the year be-
to do that,” Mühlemann said. gravated money laundering — Etete holders, and shelled out another $50 about a month before the civilian fore he died.
in absentia — and received prison million before its initial public offer- government was ousted in a military
“At first glance, I can hardly think terms which were converted to fines ing on the Toronto Stock Exchange coup in 1983. AOG told OCCRP that Shinkafi
of legitimate purposes why AOG on appeal. closed in February 2006, valuing the was an early minority shareholder
should hold joint accounts with company at over $2 billion. AOG Shinkafi unsuccessfully ran in the and never owned more than 0.27
high-ranking political figures.” All in all, Granier-Deferre estimat- also gave out about eight percent primaries as a would-be presidential percent of the company’s shares. They
ed, Addax had paid Etete some $10 of its remaining shares in Addax — candidate under the National Repub- said they were never aware of his as-
Credit Suisse, in a statement, in- million in bribes. The biggest of these, worth roughly $160 million at the lican Convention, one of two polit- sociation with Abacha or his political
sisted that Swiss law does not autho- $5 million, related to the purchase of time — to current and former direc- ical parties approved by the military activities.
rize it to comment on client relation- the Ashland assets, which set off the tors and employees. government to contest the 1993 pres-
ships. company’s rapid ascent in Nigeria. idential elections. “He was known to us as a busi-
Taking Ashland’s Assets As these windfalls were arriving nessman specialized in the oil and
“As publicly stated in our press re- In 1973, Ashland Nigeria Explora- for both AOG and Addax investors, The elections, which Shinkafi’s gas industry at that time and was not
lease published on 20 February this tion Unlimited, a subsidiary of Ash- a Credit Suisse account co-owned party candidate eventually lost, were known to the group for his political
year, we have taken a series of signifi- land Inc., became the first company by eleven people — including four annulled by then President Ibrahim activities,” they wrote.
cant measures over the last decade, in to enter into a so-called “produc- AOG employees and various African Babangida. Soon, General Aba-
line with financial market reforms, to tion-sharing contract” with Nigeria’s political figures — swelled in value. cha had re-taken military power. Tax Evasion Charges
combat financial crime. Our strategy state-run oil company. In March 2005, the account hit its Shinkafi’s leadership dream was in In 2014, the past finally caught up
puts risk management at the very core maximum value of 62 million Swiss tatters, but Nigeria’s return to mili- with Addax when the Nigerian gov-
of our business,” the bank said. But in 1997, after nearly two and a francs, worth about $53.32 million at tary rule produced another high-level ernment under President Goodluck
half decades of operation, Ashland fell the time. connection for him. Shinkafi’s son- Jonathan accused the company of
Shinkafi died in 2016. His daugh- afoul of Nigerian authorities when it in-law, Atiku Bagudu, became a key evading over $3 billion in taxes and
ter and son-in-law did not respond to tried to sell shares in its Nigerian sub- Between March and April 2006, money launderer for the Abachas, royalty payments. Authorities de-
requests for comment. sidiaries to a French company with- four new Credit Suisse accounts were helping them clean billions, accord- manded the firm pay back taxes
Addax’s History of Bribery out getting government approval. opened in the names of the same elev- ing to the U.S. Department of Jus- stretching to 2000, just before then
AOG was founded in 1987 in Ge- en people. None reached more than tice. Today, Bagudu is governor of President Olusegun Obasanjo’s ad-
neva by four Swiss businessmen and Etete, the oil minister, had report- 1 million Swiss francs in value, apart Nigeria’s northeastern Kebbi state. ministration granted the company
registered in the British Virgin Is- edly wanted to kill the Ashland con- from one worth over 2.5 million special tax cuts.
lands. The firm started out trading tract, but Addax executives managed francs in 2014. Bagudu’s second wife Zainab, who
refined oil products and then moved to convince him this would be bad is Shinkafi’s daughter, did not re- Addax sued the Nigerian govern-
into storing and distributing oil prod- publicity. Instead, Addax would ne- Two accounts — including the spond to requests for comment. ment in December 2014, arguing
ucts in sub-Saharan Africa. In 1994, gotiate with Ashland to buy out its largest one — were closed in 2009, that as a result of receiving the tax
AOG founded Addax Petroleum as Nigerian assets. the same year that Chinese state oil After Abacha died in 1998, Nige- cuts they had invested heavily in the
a subsidiary for oil exploration and giant Sinopec bought Addax. A third rian authorities began looking into Nigerian economy, amounting to
production. Addax secured Ashland’s licenses was closed in 2013, while two others the money he and his associates had even more than $3 billion.
for four oil fields in southeastern Ni- appeared to remain open well into stolen. Shinkafi himself represented
Though it was an oil firm on paper, geria in April 1998. The amount paid the last decade. the Abachas in a negotiation with For unclear reasons, Nigerian au-
Addax’s first activities in Nigeria were was not disclosed, but Ashland’s ear- Shinkafi’s Secret Share the government to return about $1.2 thorities agreed to settle the matter
dedicated to helping Abacha and his lier agreement with the French firm The Nigerian spy boss Umaru Ali billion of stolen assets, according to out of court, and eventually agreed
associates set up financial infrastruc- valued the assets at $60 million. a leaked U.S. diplomatic cable from to abide by the earlier agreement. But
ture to receive millions of dollars’ 2002. this was not the end of Addax’s trou-
worth of bribes, according to later bles.
court findings.
In 2016, Deloitte, Addax’s auditor,
Working on a tip from France’s reported the company had paid $100
Finance Ministry, French investiga- million to lawyers, consultants, and
tors would later find that Richard other entities in Nigeria the previous
Granier-Deferre, a French-born Add- year with no clear services or products
ax Petroleum executive in Geneva, rendered, according to a copy of a let-
had opened accounts on behalf of ter to Sinopec obtained by OCCRP.
Abacha’s two oldest sons at Banque
Edouard Constant in Geneva in Deloitte resigned as Addax audi-
1995. He also set up an account for tor in December 2016 after the audit
Bukazi Etete, the brother of Nigeria’s firm insisted on external independent
oil minister at the time, Dan Etete. investigation into the payments. Swiss
authorities later arrested Addax’s chief
In January 1997, Addax transferred executive officer and legal director in
$920,000, described as “hidden com- Geneva on bribery charges. Three
missions,” into Etete’s brother’s ac- weeks later, both were released with-
count to win a contract for delivery out charge. A few months later, the
of refined Nigerian oil products from company paid 31 million Swiss francs
the state’s oil company, according to to settle the case.
court records.
In 2017, U.S. investigators opened
Addax was not alone in making their own probe into Addax’s owner
such payments: Nine companies, since 2009, the Chinese state firm
including Britain’s Attock Oil Inter- Sinopec, since parts of the payment
national and the Swiss commodities passed through the U.S., according to
trader Glencore, also paid money into Bloomberg.
Bukazi Etete’s account. In total, some
$19 million and roughly 5.5 million Then, last year, Nigeria’s oil reg-
German marks passed through the ulator revoked the four oil mining
account between 1995 and 1997, re- licenses Addax had obtained from
cords show. Ashland, claiming they had failed to
develop the assets for years. The pres-
Granier-Deferre maintained pow- ident, Muhamadu Buhari, restored
er of attorney over Etete’s Swiss the licenses, ostensibly to protect the
accounts, which he used to move rule of law and a stable business en-
deposits into Addax’s own Swiss ac- vironment, although some saw it as a
counts. In Nigeria, Addax would move to avoid angering China.
then pay out the same amounts in
cash to officials, he said. Nevertheless, authorities con-
tinued to press their claim for back
Banque Edouard Constant closed taxes. Today the government is still
the accounts in 1997, after numer- in court, demanding that Addax pay
ous suspicious deposits, including a over $3 billion.
$12 million transfer sent in a single
day to Abacha’s sons’ account. Un- — Organised Crime and Corrup-
deterred, Granier-Deferre opened tion Reporting Project.
new accounts for the group at other

Page 26 Editorial & Opinion NewsHawks

CARTOON Issue 99, 23 September 2022

Rotten state
run by thieves

THE rot never ends, does it? Auditor-General Mildred Chiri this week re- Sikhala detention an injustice
vealed that 53 state-owned enterprises have failed to submit their financial
statements for audit. Hawk Eye

That is remarkable. Is Zimbabwe still pretending to be a constitutional Dumisani
democracy or have we regressed to a fully fledged authoritarian kleptocracy? Muleya
Chiri makes this startling revelation in the 2021 audit report on state-owned
entities and parastatals presented to Parliament. Among these 53 entities are
four whose accounts have been in arrears for more than three years. And
as The NewsHawks reports in these pages today, some ministries are taking
public money and buying shareholding in private companies without the
authorisation of Parliament. How on earth do taxpayers hold public officials
accountable for these actions? This is the stuff of banana republics.

Billions of dollars are still being paid out from the exchequer account,
yet in terms of best practice, payments should be processed via the Paymas-
ter-General. Money is being diverted from what ought to be a strictly reve-
nue-receiving account — and without supporting documents. Government
accounts are a crime scene.

The Public Entities Corporate Governance Act makes it clear that para-
statals and other public entities must submit their financial accounts for au-
dit. This is meant for accountability, with the core objective being to ensure
that public funds are managed in an efficient, effective and responsible man-
ner that improves the quality of life of citizens.

Good financial management boosts public confidence and trust in gov-
ernment. The obverse is true: bad governance promotes corruption, ineffi-
ciency, incompetence and socio-economic decline. Sounds familiar? The
government has a constitutional responsibility to uphold good public finan-
cial management. It is part of the annual budget cycle; when you erase this
important function, the republic is reduced to a free-for-all spectacle where
taxpayer funds are looted and wasted with impunity.

Remember, the Finance ministry is yet to convincingly explain to citizens
how it clocked up US$10 billion in unauthorised expenditure.

But if you thought the rot is confined to parastatals, you better think again.
At least 71 of Zimbabwe's 92 local authorities — including Harare — have
failed to avail books for inspection by the Auditor-General as suspicion grows
that millions of United States dollars are being looted, with municipalities
flouting public procurement law.

Every man and his dog know that Zanu PF is the godfather of corruption.
How then can anyone explain why councils run by the opposition are equally
rotten? Local Government minister July Moyo is notorious for tampering
with opposition-dominated councils, but he should not become a bogeyman
for everything that goes wrong in the local authorities. All corruption and
incompetence must be condemned, regardless of political affiliation.

There is another pressing issue. Recently, legislators raised alarm that the
very existence of the Auditor-General's office is under threat as the govern-
ment has reneged on financing the critical body.

Members of Parliament have rightly characterised this as a futile attempt
by the authorities to cripple the Chiri-led team from exposing the massive
looting in ministries and parastatals.

So dire is the situation that the Auditor-General’s office has since been hit
by high staff turnover, transport challenges and lack of furniture to properly
execute their duties while the government is turning a blind eye to requests
by Parliament to allocate 1% of the national budget to the important office.

However, Parliament needs to step up to the plate and exert pressure on
the executive to capacitate the AG’s office in line with the dictates of the con-
stitution. It remains to be seen whether legislators have the teeth to back up
the bark. In recent days, the nation has witnessed the humiliation of esteemed
MPs who have been turned away by hotels which are telling them the gov-
ernment has been erratic in paying for their accommodation. If the people’s
elected representatives can be subjected to such treatment, can you imagine
the horrors that await an Auditor-General who diligently delivers every year
in exposing bad governance?

The failure to support the Auditor-General’s office — a vitally important
component of the constitutionally stipulated oversight function — will seri-
ously undermine the fight on corruption, incompetence and inefficiency in
parastatals and ministries.

Another challenge is the mass exodus of critical staff due to low salaries
and shabby working conditions. Auditors are in demand worldwide. Over-
working them while paying peanuts can only end in grief — they will vote
with their feet.

In fact, auditors are not the only professionals in Zimbabwe who have
been reduced to paupers; working for the government has indeed become the
quickest route to poverty for most civil servants whose efforts go unappreciat-
ed by uncaring political leaders.

The Zimbabwean crisis is essentially a governance and leadership problem.
The Auditor-General's latest report is a stark reminder.

Reaffirming the fundamental impor- The NewsHawks is published on different EDITORIAL STAFF: Marketing Officer: Voluntary Media
tance of freedom of expression and me- content platforms by the NewsHawks Digital Managing Editor: Dumisani Muleya Charmaine Phiri Council of Zimbabwe
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human rights and liberties in the con- No. 100 Nelson Mandela Avenue [email protected] Code of Conduct that promotes truthful, accurate,
stitution; our mission is to hold power Beverly Court, 6th floor News Editor: Owen Gagare
in its various forms and manifestations Harare, Zimbabwe Subscriptions & Distribution: fair and balanced news reporting. If we do not
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corruption to ensure good governance Beatrice Mtetwa, Raphael Khumalo, Reporters: at No.: 34, Colenbrander Rd, Milton Park, Harare.
and accountability in the public inter- Professor Wallace Chuma, Teldah Mawarire, Nyasha Chingono, Enoch Muchinjo, Moses Matenga,
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Website: www.vmcz.co.zw, Facebook: vmcz Zimbabwe

NewsHawks New Perspectives Page 27

Issue 99, 23 September 2022

Remarks by the Zinara board chairman Dr. George
Manyaya on action being taken to address issues
raised in the Public Accounts Committee report

Honorable members of this esteemed Committee, I stand before you today on this important day. tenets of good governance to benefit the public. These funds belong to the generality of Zimba-
Important not only to ZINARA, and Parliament, but to the nation at large. I say IMPORTANT bweans and we have a duty to handle them with probity and propriety.
in that, this is the day that we as ZINARA have been given an opportunity to give oral evidence
on the steps we have taken to resolve the Various issues that came out of the FORENSIC audit the We are elated to respond today as we appreciate constitutional role played by Parliament to
Recommendations of this Committee thereof. monitor and oversee statutory bodies to ensure that all revenue is accounted for and that expen-
diture has been properly incurred. We know we will explore all issues and most importantly map
It is not a secret that the report findings attracted local, regional and International scrutiny and a way forward. We are together as one with a common goal to ensure that there is ACCOUNT-
for many years’ millions of people have been waiting for this day ABILITY AND TRANSPARENCY

Inasmuch as we are a new broom, a new board and management were appointed in 2019, ZIN- As such, the new team is pleased to present to the Hon members of Parliament action taken
ARA as a statutory entity has not changed and still has to account for its actions and we have been following the findings and recommendations made by PAC to the substantive issues raised in the
mandated to ensure ZINARA rebrands from the bad boy tag, comply with applicable laws and stated audit reports and other strategies put in place to address the anomalies raised.

Page 28 New Perspectives NewsHawks

Issue 99, 23 September 2022

NewsHawks New Perspectives Page 29

Issue 99, 23 September 2022

Conclusion with our mandate and are currently in discussions with various Government agencies on how we can preserve the
ZINARA, as an institution, is working tirelessly to ensure that all anomalies raised in all audit reports are addressed. value of these disbursements.
I wish to extend my appreciation to Ministry of Transport and Infrastructural Development as continues to provide
policy guidance to ensure no repeat of issues. Our Minister ( Hon Felix Mhona)has been pressing us hard to ensure After its appointment in 2019, the new Board ensured the holding of the 2016 to 2020 Annual General Meet-
we implement the recommendations, and clean ZINARA. He has been a member of such committees and thus ings. ZINARA is now up to date as the audit process for 2021 Financial Statements is underway.
appreciates the issues.
Following the ZACC recommendations to enhance the integrity, improve accountability and prevent improp-
We are grateful to Parliament through the PAC, Portfolio Committee of Transport, law enforcement agents er conduct within ZINARA, Integrity Committee was established. The integrity committee is composed of staff
such as ZACC (sustained engagement and the establishment of integrity committees), Ministry of Finance and members, and its roles include promoting good governance by improving internal processes and having effective and
Economic Development, Attorney General’s Office and the office of the President and Cabinet, amongst other key efficient systems to prevent corruption.
institutions. ZINARA has improved its stakeholder relations, as can be witnessed. Road authorities’ workshops have
improved the cordial relationship, thus improving the disbursements and utilisation of the same. ZINARA also established various departments that were not in place during the audit. These include:
• Revenue Operations
Disbursements have also been published in various local Newspapers for public consumption. We are proud as • Procurement Management Unit and
Zinara to advise that in 2021, we managed to fully disbursed to all the road authorities across the country and a • Risk and Loss Control Department.
marker improvement in road maintenance was evident to the citizens of Zimbabwe. We continue to disburse in line Previously, revenue collections were done by the Finance department and Human Resources. Revenue collec-
tions are now housed under one department, the Operations Department, to improve transparency, efficiency and
accountability.
With regards to the Development Bank of Southern Africa, ZINARA, through new management and Board,
managed to regularize the loan facility, and it pleases us to advise the Honorable members that the facility is now
regular and thus able to access more lines of credit if need be.
Honorable members coincidentally ZINARA turns 21 this year and gets the key of life, key of transparency. We
appeal to all stakeholders to give us a chance and not judge us by the omissions or commissions of the past. We were,
young, immature and notorious but we have turned a new leaf . I declare and can confirm to the Honorable mem-
bers that ZINARA is now on course and fulfilling its mandate through consistent and transparent disbursements.
Ninety percent of all collections across all revenue streams are going back to the roads. Once again, we thank you,
Honorable members, and hereby submit our report.

NewsHawks

Issue 76, 15 April 2022
BusinessPage26
MATTERSNewsHawks

MARKETS CURRENCIES LAST CHANGE %CHANGE COMMODITIES LAST CHANGE %CHANGE
USD/JPY
GBP/USD 109.29 +0.38 +0.35 *OIL 63.47 -1.54 -2.37
USD/CAD
USD/CHF 1.38 -0.014 -0.997 *GOLD 1,769.5 +1.2 +0.068
AUD/USD
1.229 +0.001 +0.07 *SILVER 25.94 -0.145 -0.56

0.913 +0.005 +0.53 *PLATINUM 1,201.6 +4 +0.33

0.771 -0.006 -0.76 *COPPER 4.458 -0.029 -0.65

Economy effectively dollarised: CZI

BERNARD MPOFU listed among the dollarised economies,” the CZI Already, the continued depreciation of the Zim- gaining 28.1 percentange points.
says. babwe dollar is piling pressure on local banks to The month-on-month inflation rate in August
ZIMBABWE’S organised industrial lobby group, harden their balance sheets as they seek to preserve
Confederation of Zimbabwe Industries (CZI) says “A look at the money supply trends also shows their capital ahead of the year-end deadline to meet 2022 was 12.4%, shedding 13.2 percentage points
a rise in United States dollar deposits and growth in that the dominance of the US dollar is becoming minimum capital requirements. on the July 2022 rate of 25.6%. Between March
hard currency loan books have effectively dollarised more pronounced; about 58.76% of deposits in and June 2022, the month-on-month inflation
the economy. broad money in June 2022 were foreign currency The CZI says several measures announced to trend was threatening to reach hyperinflation levels,
transactions, while about 64% of transferrable de- mop up excess liquidity in the economy will result peaking at 30.7% in June 2022.
Authorities have over the past few months an- posits were foreign currency accounts. The econo- in month-on-month inflation declining to sin-
nounced a plethora of measures to avert the im- my is slowly transitioning on its own towards full gle-digit levels by year-end. A cocktail of measures characterised by both
minent collapse of the local currency which some dollarisation; deliberate policies by the authorities monetary and fiscal policies resulted in month-on-
retailers are already shunning and stem raising in- to reverse this trend are long overdue.” The year-on-year inflation rate for August 2022 month inflation beginning to subside since July
flation. increased to 285% from 256.9% in July 2022, 2022.

Government has once again adopted a multicur-
rency regime for the duration of its economic blue-
print, the National Development Strategy 1, which
lapses in 2025.

The multicurrency regime was legislated into
law through Statutory Instrument 118A of 2022,
to create an environment in which banks can com-
fortably lend in United States dollars.

According to a CZI research note for August, the
existence of the US dollar and the Zimdollar has
ensured that the dollarisation debate remains alive.

There are many definitions of dollarisation that
have been used in the literature. The general use
is that it refers to a situation where residents are
holding a significant share of their assets in foreign
currency.

Dollarisation can be "de-jure" or "de-facto". De-
jure dollarisation is where foreign currency is given
legal tender status in an economy to perform all the
three functions of money (store of value, unit of ac-
count, and medium of exchange).

De-facto dollarisation just refers to the gener-
al case where the foreign currency is being used
alongside the domestic currency, but without an
equivalent legal status. Where conditions of dual
currency exist, dollarisation is also defined to refer
to a situation where the US dollar becomes a dom-
inant currency.

“A look at these traditional definitions generally
shows that Zimbabwe is already qualifying to be

Ipec moots US dollar-indexed capital requirements

BERNARD MPOFU During the period under review, the Zim- The total business written by short-term re- prescribed asset ratio of 10%. All the nineteen
babwe dollar lost its value from an average of insurers increased by 191% from ZW$5.22 insurers reported capital positions compliant
ZIMBABWE’S insurance sector regulator says US$1:ZW$142.40 as at 31 March 2022 to billion for the half year ended 30 June 2021 to with the minimum capital requirement (MCR)
it may soon announce new United States dol- US$1:ZW$366.3 as at 30 June 2022, prompt- ZW$15.20 billion during the period under re- of ZW$37.5 million.”
lar-indexed minimum capital requirements for ing the industry to switch to United States view.
short-term insurers as uptake of hard curren- dollar-indexed products. The depreciation was Short-term reinsurers, the report further
cy-backed products improves. mainly driven by higher demand for foreign cur- “In terms of foreign currency-denominated reads, had an asset base of ZW$35.34 billion,
rency as a store of value, and forward exchange business, the reinsurers reported a 27% increase reflecting a 272% increase from the ZW$9.51
According to the Insurance and Pension rate pricing due to high inflation expectations. from US$41.35 million reported during the billion reported as at 30 June 2021. Investments
Commission (Ipec) short-term report for the half-year of 2021 to US$52.54 million during in prescribed assets by short-term reinsurers in-
half-year ended 30 June, total gross premium "Meanwhile the commission is finalising the comparative in 2022, reads the Ipec report. creased from
written (GPW) by the sector increased nomi- work on the draft Statutory Instrument for US
nally by 200% from ZW$9.95 billion in June dollar-indexed minimum capital requirements”, “Total assets reported by short-term insurers ZW$1.41 billion as at 30 June 2021 to
2021 to ZW$29.84 billion during the compar- reads the report. increased from ZW$13.95 billion as at 30 June ZW$4.64 billion.
ative period in 2022. Foreign currency-denomi- 2021 to ZW$58.25 billion as at 30 June 2022.
nated business increased by 21% from US$54.9 All 19 insurers, according to the report, re- Investments in prescribed assets by short-term “Four out of the nine (9) short-term rein-
million reported for the half-year ended 30 June ported capital positions that were compliant insurers increased by 304% from ZW$0.48 bil- surers were compliant with the minimum pre-
2021 to US$66.68 million for the current re- with the local currency-indexed minimum cap- lion as at 30 June 2021 to ZW$1.94 billion as at scribed asset ratio of 10%. All the short-term
porting period. ital requirement of ZW$37.5 million as at 30 30 June 2022. Only one out of nineteen short- reinsurers were compliant with the minimum
June 2022. term insurers was compliant with the minimum capital requirement of ZW$75 million,” the re-
port reads.

NewsHawks Companies & Markets Page 31

Issue 99, 23 September 2022 Fidelity Life Assurance

Grant Thornton red flags Fidelity Life results

BERNARD MPOFU

GRANT Thornton Chartered Accountants, in- the interim condensed consolidated financial itive growth in the business. IAS 21 gives guidance relating to the effects of
dependent auditor of the Zimbabwe Stock Ex- statements as a whole.” The group recorded net premium written of changes in foreign exchange rates in volatile mar-
change-listed concern Fidelity Life Assurance, kets. Zimbabwe first experienced hyperinflation
has issued an adverse opinion on the company’s According to the financials, the group record- ZW$1 242 million in inflation-adjusted terms from around 2005 till 2008, peaking in 2008 at
half-year financials, saying they could have been ed an inflation-adjusted prof­it for the period of and ZW$1 027.9 million in historical cost terms, 500 billion percent. US$1 became equivalent to
misstated. ZW$2 325.7 million from ZW$934.1 thousand an increase of 3% and 137% respectively from Z$2 621 984 228. The domestic currency was
recorded in prior period and a historical profit­ of an inflation-adjusted ZW$1 285.8 million and ultimately ditched in favour of a multi-currency
At a time the economy continues to wob- ZW$3 845 million was posted from ZW$203.5 ZW$433.5 million in historical cost terms record- system dominated by the US dollar.
ble, retailers and other service providers are now million recorded in prior period, representing pos- ed prior year.
charging prices based on the official exchange rate,
parallel market rate, Real-Time Gross Settlement
rate and several others, depending on the mode of
payment consumers opt to use.

This comes nearly four months after audit firms
raised the red flag on some Zimbabwe Stock Ex-
change-listed companies which failed to comply
with international financial reporting standards
as the currency conundrum gets mirrored in eco-
nomic implosion-induced accounting headaches.

An adverse opinion is a professional conclusion
made by an auditor indicating that a company's
financial statements are misrepresented, misstated
and do not accurately reflect its financial perfor-
mance and health. Adverse opinions are usually
given after an auditor’s report, which can be inter-
nal or independent of the company.

“During the current financial year, there were
disparities between the auction exchange rates de-
rived from comparing the market prices of goods
and services quoted in both US dollars and Zim-
babwe dollars,” the auditors said in a note accom-
panying Fidelity financials for the period ending
30 June, 2022.

“These conditions point the existence of multi-
ple exchange rates. In terms of IAS 21, when sev-
eral exchange rates are available, the rate used is
that at which the future cash flows represented by
the transaction or balance could have been settled
if those cash flows had occurred at the measure-
ment date.

“Had the interim condensed consolidated fi-
nancial statements been prepared in accordance
with International Accounting Standard (IAS 21),
many elements would have been materially affect-
ed. The effects of non-compliance of IAS 21have
been considered to be material and pervasive to

Page 32 Companies & Markets NewsHawks

Issue 99, 23 September 2022

Pension funds should diversify — Ipec

BERNARD MPOFU 20% were 16 as at 30 June 2022. increased since the introduction of the new asset amounted to US$84 million, translating to 50%
“The increase in prescribed assets investments class. “Given the industry interest to invest in the of total prescribed assets.
LOCAL pension funds should diversify their in- recently introduced gold coins, which have been
vestment portfolios and reduce their exposure on was mainly driven by the availability of foreign granted prescribed asset status, the expectation is Cash holding amounted to ZW$23 billion as
the equities market as economic headwinds trig- currency-denominated instruments approved by that this will result in increased compliance levels, at 30 June 2022, of which 67% was in foreign
ger bearish sentiments on the stock market, a new the Ministry of Finance and Economic Develop- subject to availability of the coins and uptake by currency. Foreign currency-denominated cash
report has shown. ment, which have proven to be attractive to pen- pension funds,” the report reads. amounted to US$41 million. The high levels of
sion funds as they hedge against inflation.” cash means that the members are not gaining in-
Official figures show that the major asset class- “Foreign currency-denominated prescribed vestment return from this cash, which could lead
es for the pensions industry as at 30 June 2022 Ipec says despite high exposure on the equities assets investments by the pensions industry to low benefits.”
were equities and properties, with each constitut- market, pension funds’ uptake of gold coins had
ing 43% and 38% of the industry’s total assets,
respectively.

“As a result, total investment in the two asset
classes was over 80%. This trend is not different
from 30 June 2021 where the major asset class-
es were equities and property, which constituted
49% and 38% respectively,” a half-year report
done by the Insurance and Pension Commission
(Ipec) shows.

“The industry should explore other investment
options in order to increase diversification. While
the two asset classes have been tracking inflation
for most of the hyperinflationary period, the re-
cent bearish trend on the ZSE [Zimbabwe Stock
Exchange] has resulted in the fall in value of the
equities, which is a demonstration that investing
in this asset class is not risk-free. As such, diversi-
fying asset classes can go a long way in protecting
pension fund members' investment properties,”
the report further shows, stood at ZW$298 mil-
lion as at 30 June 2022 from a value of ZW$74
million as at 30 June 2021, which was a nominal
increase of just over 300%.

Equities had a nominal increase of 250% to
about ZW$340 million as at 30 June 2022 from
about ZW$100 million as at 30 June 2021, at-
tributable to fair value gains and acquisition of
equities from contributions received by pension
funds.

“Prescribed assets amounting to ZW$63 bil-
lion constituted 8% of the industry’s total assets
as at 30 June 2022. This was an increase of about
800% from the prescribed assets investments of
about ZW$7 billion as at 30 June 2021,” the re-
port reads.

“Notwithstanding the increase in the level of
investments in prescribed assets, it is still below
the statutory requirement of 20% of industry as-
sets. The total number of funds, which complied
with the prescribed assets requirement of at least

Masimba gets boost from US dollar business

ZIMBABWE Stock Exchange-listed contractor it before tax grew by 319% to ZW$5.3 billion properties,” the company says. distortions emanating from an inefficient foreign
Masimba Holdings says the resurgence of the (2021: ZW$1.3 billion) and 1.300% to ZW$6.3 “The group has a firm diversified order book currency allocation system and prevailing hyper-
country’s construction and mining sectors saw its billion (2021: ZW$451 million), respectively. inflation. Notwithstanding the challenges in the
foreign currency-denominated revenue contribut- valued at US$145 million (2021: US$83 million) environment, the board remains cautiously opti-
ing 55% of the group’s total topline amid opti- “The positive performance was underpinned with tenures of between three months to eighteen mistic and will implement strategies to preserve
mism that its order book will remain in a healthy by production efficiencies and exchange gains months. The book is well balanced and diversi- the Group’s value and delivery capabilities.”
position. emanating from a net foreign currency asset po- fied between public and private sectors. However,
sition and fair value adjustment on investment execution thereof may be hampered by pricing — STAFF WRITER.
The government has engaged several private
sector contractors to upgrade the country’s dilap-
idated road network under the Emergency Road
Rehabilitation Programme. The mining sector is
this year recording strong gains following Russia's
invasion of Ukraine beginning February.

Masimba says the operating environment for
the period under review remained unstable, char-
acterised by continued and increasing disparities
between the official and alternative market for-
eign exchange rates which blur the interpretation
of financial statements.

“Revenue for the six-month period in infla-
tion-adjusted and historical terms at ZW$9.6
billion and ZW$7.1 billion was ahead of com-
parative period by 52% and 242% respectively,
mainly attributable to a firm order book in min-
ing, infrastructure and roads segments,” reads the
company’s financials for the six months ending 30
June. Due to a diversified project portfolio, the
revenue earned in United States dollars improved
to 55% (2021: 35%) as a proportion of the total
revenue. The associated foreign currency-denomi-
nated revenues and costs are converted to Zimba-
bwe dollars based on the Reserve Bank of Zimba-
bwe auction rates.”

In inflation-adjusted and historical terms, prof-

NewsHawks Companies & Markets Page 33

Issue 99, 23 September 2022

International exhibitors look forward
to Sanganai/Hlanganani tourism expo

NTAHAN GUMA al Park, Bulawayo and Harare. “Zimbabwe is one of my favourite places in the evening.
His company, which already has a presence in the world and I am so excited at the opportunity The ACZ, which operates a network eight
INTERNATIONAL buyers say they are look- to be at Sanganai/Hlanganani to reconnect with
ing forward to the 15th Edition of the Sanganai/ South Africa, also has an 80% market share of old friends and industry partners. I want to be airports which are strategically located across the
Hlanganani World Tourism Expo to be held operators who bring tourists to Africa. able to pick as much information as possible and country is also set to provide quick and direct ac-
from 13 to 15 October at the Zimbabwe Inter- share it with friends and industry colleagues back cess to tourist resorts and trade zones.
national Exhibition Centre in Bulawayo. Jin said he is hoping to use the expo to sell at home,” Lebreux.
Zimbabwe’s tourism products in his home coun- The three major airports with scheduled ser-
This year's expo is expected to attract an esti- try and the Asian continent. From 13 to 15 October, tourism journalists vices are Robert Gabriel Mugabe International
mated 100 international buyers. and buyers comprising international travel agents Airport, the main gateway into Zimbabwe and
“We are attending Sanganai/Hlanganani as and travel trade partners, will be taken on famil- the capital city, Harare; Victoria Falls Interna-
The past 14 editions of the expo were a major buyers and looking forward to meeting the rest iarisation trips to different tourism sites across tional Airport, which provides access to one of
success and attracted leading African destinations of the world at this tourism exchange. Before Zimbabwe. the seven natural wonders of the world, as well as
and major world tourism markets such as South 2019, as a company we used to bring about 3 Joshua Mqabuko Nkomo International Airport,
Africa, Botswana, Malaysia, China, Zambia, 000 South Korean tourists into the country and The Expo has already received sponsorship which provides access to Bulawayo, Zimbabwe’s
Malawi, Kenya, Mozambique, Namibia, United we hope to continue after this year’s edition of from air travel companies, Zimbabwe and the second-largest city and the country’s melting pot
Kingdom, United States, China, India, Italy and the expo. Airports Company of Zimbabwe (ACZ) to facil- for arts and culture as well as business.
many others. itate travel by delegates.
“We want to enhance our knowledge and ex- The ACZ operates other five smaller airports
The annual expo, which resumes after a pro- perience about destinations we have since booked In support of the expo, AirZim has put ad- which are mainly served by charter operators,
longed suspension due to the Covid-19 pan- to take part in a pre-tour that covers Bulawayo, ditional capacity to fly daily twice on the Hara- except Kariba which now has scheduled services.
demic, presents a golden opportunity for play- Masvingo, the Eastern Highlands and Harare,” re-Bulawayo-Victoria Falls route, to ensure the
ers in travel and tourism sector to promote their he said. convenience of local and foreign visitors. These are Kariba International Airport,
brands. Charles Prince International Airport, Hwange
American Kirsten Lebreux, who works with A plane will leave Harare for Bulawayo and National Park Airport, Masvingo International
Yunsuk Jin, a leading South Korean tour oper- an operator that specialises in custom tours all Victoria Falls every morning and then fly back Airport, and Buffalo Range International Air-
ator, said they have booked a pre-tour which will round the world said she is looking forward to from the resort city, through Bulawayo to Harare port. Plans are underway to establish three more
see them visit the Victoria Falls, Hwange Nation- seeing what the country has for tourists during every morning, before repeating the routine in airports in Gweru, Beitbridge and Mutare.
the Expo.

Page 34 Stock Taking NewsHawks

Issue 99, 23 September 2022

Price Sheet A MEMBER OF FINSEC & THE ZIMBABWE STOCK EXCHANGE

Friday, 23 September 2022

Company Sector Bloomberg Previous Last VWAP (cents) Total Total Price Price YTD Market
Traded Traded Change Change (%) Cap
AFDIS Consumer Goods Ticker Price (cents) Traded Volume Value ($) (cents) ($m)
African Sun Consumer Services (%)
ART Price 500
Ariston Industrials 100
Axia Consumer Services AFDIS: ZH 30000.00 29995.00 29995.00 149,975 -5.00 -0.02 139.96 35,842.38
BAT - 1,350 149.48 12.45 110.20 19,951.67
Bridgefort Capital Consumer Goods ASUN: ZH 1200.52 1350.00 1350.00 2,200 - 58.85
Bridgefort Class B Consumer Goods ARTD: ZH 1660.00 - 1660.00 1,400 7,181 - - -12.30 7,253.82
CAFCA 26.41 8.80 25.79 5,311.98
CBZ Industrials ARISTON: ZH 300.00 328.75 326.41 300 52,920 490.00 14.89 -35.33 20,871.28
CFI Financial Services - 621,000 27000.00 15.00 -74.29 42,711.38
Dairibord AXIA: ZH 3290.00 3780.00 3780.00 -
Delta Industrials - - - - 4.00 108.00
Ecocash Banking BAT: ZH 180000.00 207000.00 207000.00 - - - -2.32 34.89
Econet BFCA: ZH 900.00 - 900.00 8,900 - - - 93.96
Edgars Industrials BFCB: ZH 2600.00 - 2600.00 - 1,297,615 863.94 6.30 348.86 1,450.46
FBC Consumer Goods CAFCA: ZH - - - - - -47.15 76,203.73
Fidelity Consumer Goods 16605.00 16605.00 - - - 4.07 44,537.17
First Capital CBZ: ZH 13716.00 15000.00 14579.94 1,800 304,470 2205.32 14.99 -2.47
FML Technology CFI:ZH 42000.00 - 42000.00 5,100 202,215 515.00 14.93 -8.06 6,622.19
FMP Telecommunications 46,300 3,618,345 1018.82 14.99 47.13 220,601.31
GBH Consumer Services DZL: ZH 1849.77 - 1849.77 1,100 7,040 80.00 14.29 18.16 102,716.39
Getbucks - - - 52.04 202,453.58
Hippo Banking DLTA: ZH 14709.68 16915.00 16915.00 - 45,600 300.00 14.29 131.65
Innscor Financial Services EHZL: ZH 3450.00 3965.00 3965.00 1,900 403,255 50.11 6.68 -15.00 3,867.19
Lafarge ECO: ZH 6796.18 7815.00 7815.00 50,400 2,060,400 - - -34.36 26,878.00
Mash Banking 121,200 983,552 66.69 14.98 -26.38
Masimba Financial Services EDGR: ZH 560.00 640.00 640.00 192,100 8,617 12.46 7.96 166.67 2,614.16
Meikles FBC: ZH 4000.00 - 4000.00 5,100 22,400 - - -32.14 17,281.70
Nampak Real Estate 1,400 152,000 5.00 0.03 25.40 11,732.43
NatFoods Industrials FIDL: ZH 2100.00 2400.00 2400.00 1,262,630 2653.94 14.98 7.50
NTS FCA: ZH 750.00 800.00 800.11 800 688,000 - - 83.06 6,339.37
NMBZ Financial Services FMHL: ZH 1700.00 1700.00 1700.00 6,200 577,944 70.27 13.42 -9.09 906.57
OK Zim Consumer Goods FMP: ZH 445.31 512.00 512.00 8,000 - - - -28.32
Proplastics GBH: ZH 156.49 170.00 168.95 97,300 8,582,040 468.44 5.51 -14.85 18,609.89
RTG Industrials GBFS: ZH 1600.00 1600.00 1600.00 - - - -20.31 36,673.91
RioZim Industrials HIPO: ZH 18995.00 19000.00 19000.00 - 11,830,000 9537.04 9.54 106.35 116,055.34
SeedCo Real Estate INN: ZH 17711.06 20365.00 20365.00 95,700 - - - 98.68
Simbisa Industrials LACZ: ZH 8600.00 8600.00 8600.00 14,400 -4.44 -0.28 12.82 6,880.00
Star Africa Industrials - 2,898,280 206.50 7.15 -20.86 11,042.53
Tanganda Industrials MASH: ZH 523.71 600.00 593.98 10,800 18,360 296.44 14.83 -23.08 12,082.69
Truworths Consumer Goods MSHL: ZH 5000.00 - 5000.00 91,793 0.95 0.16 132.50 22,970.70
TSL Industrials MEIK: ZH 8499.21 8967.65 - - - - -27.25
Turnall 9770.00 900 84,480 1000.00 14.97 25.31 7,178.66
Unifreight Banking 93,600 4,522,515 1329.83 13.37 37.93 74,923.45
Willdale Consumer Services NPKZ: ZH 950.00 - 950.00 800 24,610 9.36 6.22 18.39
ZB 15,300 325,500 1033.56 14.97 3,300.34
Zeco Industrials NTFD: ZH 100000.00 110000.00 109537.04 - - - - 6,466.75
Zimpapers Consumer Services - - - - -37.58 40,139.65
Zimplow NTS: ZH 1300.00 - 1300.00 1,100 - - - -19.05 5,781.92
ZHL Basic Materials 40,100 - - - 8.62 14,971.73
TOTAL Consumer Goods NMB: ZH 1604.44 1600.00 1600.00 15,400 101,660 0.71 0.42 -45.07 11,348.74
Consumer Goods 4,100 - - - -14.29 19,024.57
Consumer Goods OKZ: ZH 2889.95 3320.00 3096.45 - - - 589.58 63,403.71
Consumer Goods PROL: ZH 1998.56 2295.00 2295.00 - - - - 16.84 7,535.18
Consumer Services - 41,160 - - -37.71 20,725.97
Consumer Goods RTG: ZH 599.00 600.00 599.95 - 41,135 64.19 14.26 36.72
RIOZ: ZH 9300.00 - 9300.00 - 41,042,442 768.14
Industrials SEED: ZH 6680.00 7680.00 59,800 15,641.09
Industrials 7680.00 -
Industrials - 1,636.89
SIM: ZH 9948.26 11440.00 11278.09 - 3,465.74
Banking 2,800 3,022.60
Industrials SACL: ZH 150.45 155.00 159.81 8,000 11,562.58
Consumer Services 900,500
Industrials TANG: ZH 6905.46 7940.00 7939.02 15.34
Financial Services 1,958.40
TRUW: ZH 200.00 - 200.00 5,065.33
9,349.10
TSL: ZH 4380.00 - 4380.00 1,407,890.56
TURN: ZH 332.00 - 332.00
UNIF: ZH 3255.00 - 3255.00
WILD: ZH 169.29 170.00 170.00
ZBFH: ZH 6600.00 - 6600.00
ZECO: ZH -
3.31 3.31

ZIMP: ZH 340.00 - 340.00
ZIMPLOW: ZH 1470.00 1470.00 1470.00
450.00 515.00 514.19
ZHL: ZH

ETFs CSAG.zw 200.00 - 200.00 - - - - 100.00 72.40
Cass Saddle Agriculture ETF DMCS.zw 140.00 145.00 145.41 158,961 231,150 5.41 3.86 45.41 102.57
Datvest Modified Consumer Staples ETF 120.52 125.00 125.00 4.48 3.72 25.00 2,988.76
Morgan&Co Made in Zimbabwe ETF MIZ.zw 2845.45 2850.00 2773.24 14,615 18,269 -72.21 -2.54 177.32 3,568.41
Morgan&Co Multi-Sector ETF MCMS.zw 404.76 455.00 421.94 938 26,013 17.18 4.24 -4.12 606.01
648,632
Old Mutual ZSE Top 10 ETF OMTT.zw 153,727

FINSEC Financial Services OMZIL 18400.00 - 18400.00 -- - 84.00 15,274.16
Old Mutual Zimbabwe

VFEX (US cents) Mining BIND:VX US$m
Mining CMCL:VX
BNC Consumer Goods 3.07 3.07 3.07 333 10.22 - - -44.18 39.07
Caledonia Consumer Goods PHL:VX 1300.00 - 1300.00 - -- - - 8.06
Padenga SCIL:VX - - -- - 71.43 194.97
SeedCo International 36.00 - 36.00 - -- - 42.42 152.39
39.95 39.95

Index Close Change (%) Open YTD % Top 5 Risers Price Change % YTD %
ZSE All Share 11,629.65 +10.46 10,528.45 +7.46 BAT 207000.00c +27000.00c +15.00 -35.33
Top 10 6,690.83 +13.32 -1.77 Delta +14.99 +4.07
Top 15 7,537.46 +13.09 5,904.31 +0.11 Econet 16915.00c +2205.32c +14.99 -8.06
Small Cap +5.59 6,664.93 +17.13 Innscor 7815.00c +1018.82c +14.98 +25.40
Medium Cap 471,763.41 +5.29 446,804.28 +31.04 FMP +2653.94c +14.98 -34.36
26,741.87 25,397.48 20365.00c
512.00c +66.69c

Top 5 Fallers Price Change % YTD %
NMBZ 1600.00c -4.44c -0.28 +98.68
AFDIS 29995.00c -5.00c -0.02 +139.96
- --
- -- - -
- -- - -
- -

SALES & TRADING: Davide Muchengi: [email protected] | Lungani Nyamazana: [email protected] | Precious Chagwedera: [email protected]
RESEARCH: Batanai Matsika: [email protected] | Tafara Mtutu: [email protected] | Gabriel Manjonjo: [email protected]
Tel: (+263) 08677008101-2 | Email: [email protected] | Address: 14165 Sauer Road, Gunhill, Harare

MORGAN & COMPANY has issued this document for distribution to its clients. It may not be reproduced or further distributed in whole or in part for any purpose. This document is not and should not be construed as an
offer to sell or the solicitation of an offer to purchase or subscribe to any investment. MORGAN & COMPANY has based this document on information obtained from sources it believes to be reliable but which it has not

independently verified; MORGAN & COMPANY makes no guarantee, representation or warranty and accepts no responsibility or liability as to the accuracy or completeness of its content.

NewsHawks Companies & Markets Page 35

Issue 99, 23 September 2022

Page 36 News Analysis NewsHawks

Issue 99, 23 September 2022

BRENNA MATENDERE Reforms key for Mnangagwa
ahead of US-Africa summit
ZIMBABWE’S invitation to at-
tend the US-Africa summit in Zengesa West legislator Job Sikhala and fellow legislator Godfrey Sithole have been in remand prison for more than 100 days on allegations of inciting public
December can only reap a diplo-
matic dividend if President Em- and gives a straightforward sum- tion attempts on Citizens' Co- and credible reforms by Mnan- it would have been by way of a
merson Mnangagwa implements mary of what reforms Mnangag- alition for Change party leader gagwa can end Harare’s frosty ties personal invitation to the Presi-
broad reforms to deepen democ- wa ought to implement which are Nelson Chamisa. with Washington DC. dent. As it is, the Washington for-
racy and protect human rights. key to mending ties between his eign affairs establishment remains
government and the Joe Biden No commitment has been “If ED (Mnangagwa) is sincere committed to sanctions.”
The US-Africa summit in its administration. made to end violence at public about ending sanctions then this
second edition will run between meetings of opposition parties. is his opportunity to engage and University of Zimbabwe po-
13 and 15 December in Wash- Commentators say ahead of Recently, there was an explosion work with the USA on a plan of litical scientist Professor Eldred
ington. The first one was held in the December US-Africa summit, at a CCC rally. reforms. If he takes this visit seri- Masungure told The NewsHawks
2014, months after the then pres- it would be good for the Mnan- ously enough, coupled with real that Zimbabwe’s invitation to
ident Robert Mugabe won a dis- gagwa administration to start The civil society space contin- democratic reforms, then we may the US-Africa summit is a “small
puted election. The undemocratic righting the wrongs then travel ues to shrink, with more plans see the starting point of the end of step” in the right direction which
practices saw Zimbabwe being to Washington with a list of the to worsen the situation already sanctions.” can only be made big with real
excluded at the inaugural summit. reforms achieved and those being in motion as the ruling Zanu implementation of reforms.
done. PF pushes the discredited Private “Much depends on what ED
During the Mugabe era, the Voluntary Organisations Amend- does or does not do,” he said. “I hear that it will just be the
Zimbabwean government’s hu- At present, there are many is- ment Bill which seeks to unfairly Foreign Affairs minister going
man rights violations and eco- sues which make it pointless for regulate non-governmental or- The United States was the first there and not the President of the
nomic mismanagement prompt- Zimbabwe to attend the summit ganisations. nation to open an embassy in the country because he is on sanc-
ed the United States Congress because the government has not country in 1980, pledging assis- tions. However, it is a small step
to pass in 2001 (and amend in implemented much reform. A few months before the next tance toward Zimbabwe’s eco- in the right direction. What is
2018) the Zimbabwe Democra- general elections, broad electoral nomic development. With such key is to implement the necessary
cy and Economic Recovery Act Cases showing that the govern- reforms prescribed by interna- history, it is possible that the two reforms so that Zimbabwe’s ties
(ZDERA). The law restricts US ment is intent on undermining tional observer missions after the nations can improve their rela- with the US are salvaged.”
support for multilateral financing democracy are currently many. 2018 polls have not been imple- tions and work together again.
to Zimbabwe and restricts travel mented. “The reforms that Zimbabwe
to the US for those responsible for Job Sikhala and the Nyatsime Another eminent political ana- needs to implement are there in
undermining democracy, human 16 are still in prison as political More corruption cases by lyst, Professor Stephen Chan, said: the papers that speak about US
rights abuses and public corrup- prisoners for over 90 days without high-profile people are surging, sanctions on Zimbabwe. They are
tion. Mnangagwa is one of them. trial. with law enforcement agents and “Although Zimbabwe is invit- also in our own constitution. So
the judiciary treating them with ed to be represented, President it must be easy for Zimbabwe to
In addition, the United States Political opposition parties con- kid gloves. Mnangagwa is not. He is still un- implement them,” he said.
imposed a ban on transfers of de- tinue to be treated as outlaws. der US sanctions. So, if there were
fence items and services destined Rashweat Mukundu, a political any signals that the US is light-
for or originating in Zimbabwe, There has not been any move- analyst, concurred that only broad ening its position on sanctions
and suspended certain govern- ment in investigating assassina-
ment assistance.

On 28 January 2002, the US
State department released a report
titled “US Relations with Zimba-
bwe” in which it gave its impres-
sion on Mnangagwa.

Part of it reads:
“In November 2017, military
pressure, public demonstrations
calling for President Robert Mug-
abe’s removal, the ruling party’s
vote of no confidence, and im-
peachment proceedings led to
Mugabe’s resignation. Former
Vice-President and Minister of
Defence Emmerson Dambudzo
Mnangagwa replaced him and
was sworn in on November 24,
2017, to serve the remainder of
Mugabe’s term.”
“Mnangagwa won the pres-
idency in his own right in July
2018 in an election that was im-
proved compared to Zimbabwe’s
previous elections, but still very
flawed according to international
election observers.”
“Despite promises of reform,
the Mnangagwa Administration
continues to use violence against
peaceful protestors and civil soci-
ety, as well as against labour lead-
ers and members of the political
opposition. The Zimbabwean
government has made little prog-
ress in implementing the broad
reforms the country needs.”
The above report details exactly
what is obtaining in Zimbabwe

NewsHawks Reframing Issues Page 37

Issue 99, 23 September 2022

MIKE CHIPERE Zimbabweans stand to Despite the serendipity and op-
lose in 2023 elections portunism surrounding the land
THREE giants dominate the Zim- reform, it gradually gained solid
babwean political landscape: the legitimate targets for verbal and ent to whether Zimbabwe is under by Zanu PF as “sell-outs”. support from the Zanu PF govern-
ruling party Zanu PF, the MDC physical abuse. Zanu PF rule or that of its main One credible reason why Zanu ment and is probably one of the
and the newly formed Citizens' contender the CCC, but surely that policies that still resonates with a
Coalition for Change (CCC). The intolerance of the colonial does not make them indifferent to PF is particularly popular in ru- significant proportion of voters.
era is still very much part and par- the Zimbabwean crisis? ral areas is the land reform pro- Zanu-PF comfortably takes all the
However, meaningful change cel of Zimbabwe. The Zanu PF gramme, which the MDC fiercely credit for land redistribution, while
and real political independence will bourgeoisie has perfected it and it The main reason why Zanu PF opposed, and it is therefore per- the opposition is remembered for
take place only if a new political has cascaded to all spheres of so- wins votes is their predilection for ceived as disinterested in the affairs opposing it and inviting economic
entity emerges specifically to politi- ciety. The Zimbabwean media has coercive tactics, which they adopted of the rural population. Perhaps sanctions against Zimbabwe. But
cise the segment of eligible voters not been spared from intolerance. during the liberation war and con- the iconic image of its late presi- the current state of affairs in which
who will not vote. In Zimbabwean Articles that are critical of the gov- tinue with up to this day. Its rela- dent Morgan Tsvangirai receiving a Zimbabwe finds itself reveals it is
parlance they are pejoratively dis- ernment will never be broadcast or tionship with supporters appears to cheque from a white Zimbabwean highly improbable that Zanu-PF
missed as “neutrals”. published in newspapers. Even ar- be some weird form of Stockholm commercial farmer as a possible in- has the aspirations of the people at
ticles critical of the new favourite Syndrome, in which they contin- centive to oppose the 2000 consti- heart.
It should create a new home for opposition party, the CCC, face ue to support the party at the ex- tutional referendum remains fresh
the fraction of ruling party sup- challenges getting published by in- pense of their individual freedom. in the minds of rural voters. Since its formation in the late
porters who vote for it because of dependent news media. The men- Notable examples where people’s 1990s, the MDC has split several
fear and intimidation and for op- tality is that everyone must fall into freedom was desecrated include the Through the moral and financial times; its most recent breakup took
position supporters who desperate- a particular lane. Matabeleland genocide,  Operation support of white commercial farm- place this year. The collapse took
ly vote for change for the sake of Murambatsvina, the 2008 election ers, the proposed constitutional place just after the death of the
change. Perhaps the neutrals have chosen violence and the 2018 post-election amendment that gave the govern- MDC’s founding leader Tsvangi-
not to fall into any lane but now violence, in which soldiers opened ment the power to seize white- rai. Immediately after his demise,
In order to understand why I all 4 million of them — 45% of fire on unarmed protesters. owned farms without compensa- Nelson Chamisa and his acolytes
hold this position, it is important eligible voters — find themselves tion was defeated, but Mugabe mounted a coup, and through that,
to provide a brief background ex- homeless in their own homes. Ac- In addition to violence, the par- took advantage of Zanu PF’s parlia- he ascended to the leadership of
plaining some of the reasons why cording to the Election Resource ty incorporates populist ideologies mentary majority to proceed with the MDC. The coup was contested
Zimbabwe has failed to extricate Centre, approximately 9 million and, through that, it manages to land redistribution nonetheless. through a court case, which ruled
itself from a myriad post-indepen- people are eligible to vote in 2023, successfully deceive some voters that the manner in which he took
dence socio-political problems. but 3 million of these are not reg- into believing that Zimbabwe owes Strictly speaking, the land re- over the leadership of the MDC
istered to vote. Furthermore, out of its freedom to Zanu PF and the lib- form initiative did not emerge from was unconstitutional.
The main one is colonialism, the 6 million who are registered to eration war that it waged against the an ideological commitment; it was
which has deprived Zimbabwe and vote in 2023, it is safe to estimate settler regime. The narrative that implemented by Mugabe to punish After losing the court case, Cha-
other southern African countries that 15%, or approximately 1 mil- the gun was the sole means to gain white farmers for supporting the misa formed the CCC party, which
of epistemic freedom – the ability lion, of these will not turn out to political independence is patently newly formed MDC. It was trig- is currently shaking up the Zim-
to think unapologetically as black vote (the 2018 voter turnout was false — several political parties and gered by Svosve villagers and others babwe political landscape. It is at-
people. The theories and concepts 85%). The fact that the so-called individuals pursued peaceful means who felt they were being squeezed tracting young voters who are des-
that scaffold our daily lives are im- neutrals constitute 45% implies to gain independence — but they out of fertile grazing land by neigh- perate for change at any cost. Many
ported. Zimbabwean political lead- that they are most likely indiffer- were, and continue to be, dismissed bouring white-owned commercial of its other devotees demonstrate
ers have experimented with Marx- farms. a level of blind faith which some
ism, Leninism, Maoism, enforced have characterised as the Pentecos-
neoliberalism and everything else tal effect.
that is not Zimbabwean.
The CCC does not have the
Today, the country’s ministry of political structures, ideological
finance is led by Oxford Univer- grounding, a plan or a strategy to
sity-educated neoclassical econo- resolve the Zimbabwean sociopo-
mists, who preside over the high- litical crisis. When criticised by
est rate of inflation in the world, concerned Zimbabweans, Chamisa
but gloat about a “balanced bud- boasts that, in fact, he has a plan
get” and “budget surpluses”. At in the bag and refers to his silence
the same time, more than 96% of as “the doctrine of strategic ambi-
the population is unemployed and guity”.
public hospitals cannot even afford
the most basic medication, such as On other occasions, he takes
painkillers. ownership of the criticism and ra-
tionalises that his ideology will
It is no secret that South African emerge after consultation with the
employers prefer to employ Zim- people.
babweans, but even that has not
woken up Zimbabweans to the fact Some have pointed out that the
that their education was designed CCC is a faction of the MDC be-
purely to make them serve the in- cause it continues to use the MDC’s
terests of capital and not think. administrative structures. Chamisa
Zimbabweans pride themselves refutes this, saying his is a citizens’
on being highly educated but the movement without administrative
fact that close to a quarter of the positions; it is run by a great “fam-
population is displaced and over ily of change champions”. If indeed
three-quarters of its citizens live that is the case, it raises questions
in extreme poverty does not make about how he acquired the leader-
them question what their educa- ship position of “change champion
tion is worth or if it is capable of in chief ”. Aside from that, how
solving societal problems. does one officially become a mem-
ber of this great family, which is
The consequences of the “mon- not a political party? Does wearing
key see, monkey do” colonial edu- a yellow T-shirt suffice?
cation system, happily adopted by
post-independence Zimbabwe, is Chamisa’s failure at the most
that public intellectuals and those basic political organisation has
Zimbabweans who consider them- opened him up to criticism, partic-
selves educated are incapable of ularly from Jonathan Moyo, a for-
critical thinking and nuanced de- mer Zanu PF cabinet minister. Ad-
bate. They lack the ability to ele- mittedly, the opposition is justified
vate themselves by constructively in mistrusting Moyo, but his cri-
engaging with ideas that differ tique seems constructive and gen-
from theirs. erous. For that, CCC enthusiasts
have heaped vitriolic abuse upon
Anyone who disagreed with for- him, ranging from personal attacks
mer president Robert Mugabe ei- to threats of physical violence. 
ther was shunned or exterminated.
The MDC has split several times They went as far as making fun
because its leaders couldn’t accom- of his daughter, who was murdered
modate diversity of thought. Even in South Africa, and sarcastically
today, Zanu PF and opposition demanded that he comes back to
party members who criticise their Zimbabwe from where he escaped
leaders are considered enemies and

Page 38 Reframing Issues NewsHawks

Issue 99, 23 September 2022

after suspected Zimbabwe army entail cutting its funding to a bare ingly shallow intellectual gravitas ticipating in the 2018 general process, self-appointed pastors are
soldiers attempted to assassinate minimum — it doesn’t make sense for one who hopes to one day lead elections, the opposition would be enriching themselves, buying man-
him. As a means to silence Moyo, to give the military a budget allo- a country out of its deep crisis. in power today and more than like- sions and private jets, right in the
CCC trolls and other activists ad- cation equivalent to that of higher ly the diaspora would be voting in midst of poverty.
vised their members to put dots on education when it contributes ab- In the absence of a core idea the next election. Neutrals are also
every tweet Moyo posts. solutely nothing to the country. If or an ideological grounding, the aware that the 2018 election ob- Some apostolic churches are
Chamisa read the history of Zanu CCC is riding purely on its leader’s servers made  electoral reform rec- practising paedophilia; cases of
This is just one example of intol- PF, he would understand the mil- charismatic authority, but this is ommendations  but the CCC and 14-year-old rape victims dying
erance but applies to anyone who itary’s negative role in the political not just an opposition problem. It other opposition parties have failed while giving birth are  not uncom-
dares criticise the CCC. Its lead- affairs of post-independence Zim- also applies to Mnangagwa’s Zanu to compel the ruling party to im- mon. Political elites and private
ership seems to relish these attacks babwe and realise that it has no role PF, which compensates for lack of plement these reforms. sector executives are awarding
and makes no attempt to restrain in the future of Zimbabwe.  ideological grounding with empty themselves criminal remuneration
them. rhetoric and populism, as they hap- Other than endless calls for packages.
Zimbabwean historian Professor pily wait for international financial prayer and fasting in the mountains
Intellectually, Chamisa is pedes- Ndlovu-Gatsheni wrote an  aca- institutions and their government to cast out demons of various sorts, Neutrals see all these forms of
trian and uninspiring, as revealed demic paper  in which he proffers to complete the neoliberal experi- neutrals know that the CCC lead- social decay and know there is cur-
by a quick read of his 2018 general a road map for a future Zimba- ment in Zimbabwe. ership is not doing anything about rently no political leadership to
election political manifesto when bwe. One of the recommendations the political activists who have been look up to.
he was the leader of the MDC, he made is to urge future political Today, Zimbabwe’s independent illegally detained. As we speak, Job
his  Oxford Union address  and, leaders to urgently get rid of the newspapers, online news media, Sikhala, an MDC MP and senior These are just a few examples
more recently, the speeches he has “them and us divide”. By that, he public intellectuals and award-win- member of the CCC is  languish- that suggest neutrals have no need
made at political rallies as the lead- was obviously talking about the ning journalists are encouraging ing in prison  and is being denied for voter education. In the absence
er of the CCC. Chamisa clearly has need to reduce extreme inequality people to register to vote. Without his constitutional right to bail. His of electoral reforms and in the face
the “gift of the gab”, as the British in all spheres of life. For example, stating it openly, the code for calls lawyers have tried a series of legal of a captured Zimbabwe judiciary,
would say — he is charming and the health infrastructure in Zimba- for Zimbabweans to register is that options to no avail. neutrals know that the next gen-
has excellent oratory skills — but bwe is completely broken down but they have no option other than eral election results are probably a
there is not much in terms of sub- political elites fly private jets to get vote for CCC. They routinely cas- Mthwakazi Republic Party po- foregone conclusion. A Zanu PF
stance. treatment in foreign countries and tigate the Zimbabwean youth and litical activists were imprisoned victory will not be significantly dif-
the judiciary severely punishes of- rural folk who they feel would ben- for 36 months merely for exercis- ferent from an opposition win. It
All he has done thus far is prom- fending political opponents while efit from voter education. These ing their constitutional right to is unlikely that the 2023 elections
ise that he will be a better leader they quickly free arrested Zanu PF enthusiasts believe that the CCC protest, but the CCC is not saying will change much in the lives of or-
than Emmerson Mnangagwa, the elites. Zimbabweans aptly refer to will miraculously resolve Zimba- a word. Teachers and other civil dinary Zimbabweans. 
president of Zimbabwe. Inciden- this as “catch and release”. bwe’s problems, despite its failure servants are being paid slave wag-
tally, both men rose to the leader- to provide voters with the confi- es while the CCC calmly sits and The gaps in political leadership
ship of their respective parties via As a possible means to respond dence that it will. watches instead of fulfilling its role suggest that a political party capa-
a coup. Perhaps this explains why to Ndlovu-Gatsheni’s intellectual as an alternative government. ble of capturing the imagination of
Chamisa upholds some of his disas- counsel, Chamisa and senior mem- Neutrals are cognisant of the neutrals, and the nation as a whole,
trous policies, the most worrying bers of his party no longer make use fact that both the opposition and The neutrals are aware that Zim- has yet to emerge. It might not
of which is his promise to increase of their political rally VIP seating the ruling party have failed to pro- babwean political parties do not happen before 2023 but its emer-
military funding and not interfere areas. Instead, they sit among their vide them with information upon have the imagination to confront gence is a precondition for a new
with the operations of the security supporters, who seem to be en- which they can make a voting deci- the social ills that blight the coun- Zimbabwe.
sector. thralled by such antics, forgetting sion. Neutrals are aware that talk is try, because they are not complete-
that after the rally, the leadership cheap and that the electoral prom- ly divorced from some of the dis- — Mail & Guardian.
A bold politician in search of real of the opposition party will drive to ises made by Chamisa  and Mnan- graceful activities. The prosperity *About the writer: Dr Mike
change for the good of the nation their mansions in air-conditioned gagwa are empty. gospel sect is abusing its authority Chipere is a Zimbabwean
would have focused on assuring vehicles. The gesture of sitting in through various means, such as post-doctoral scholar affiliated
voters that the immediate priority the crowd demonstrates a worry- Neutrals are aware that, if Cha- monetising Zimbabwean people’s with the Human Economy Pro-
of a new government would be to misa had insisted on electoral re- poverty and desperation. In the gramme at the University of Pre-
demilitarise Zimbabwe. That would forms as a precondition for par- toria in South Africa.

NewsHawks Reframing Issues Page 39

Issue 99, 23 September 2022

Are free and fair elections possible in Zim

IBBO MANDAZA/ TONY REELER election disputes. We should not forget
2008 when the MDC-T won the par-
Given the history of elections in Zimba- liamentary and presidential elections,
bwe in the past two decades, there should but Zanu-PF would not concede nor
be considerable misgivings that the 2023 would Africa force them to do so: the
election could be any different, especial- consequence was a bloody run-off for
ly in light of the statements by Zanu PF which Africa should accept some of
that they will not accept loss and feel en- the blame. The available evidence is
titled to rule forever. This cannot be seen that  Irreversibility  is by no means as-
as mere rhetoric.  sured for the coming elections.

FOR 22 years the only solution to the and its ability to deliver public goods A very useful framework for conduct- President Emmerson Mnangagwa. Elections in the current state of the
political crisis in Zimbabwe has been and services to the population, and the ing a pre-election audit was provided to be free from intimidation and vio- nation
the resort to elections, and the forlorn inevitable violence that accompanies by Phillan Zamchiya at a recent policy lence, and for all forms of treating to be There must be some reasonable con-
hope that an internationally accepted elections. dialogue on elections. Part of a series absent. Clearly, with the imprisonment jecture, however, about whether Zim-
election result would guarantee the le- being mounted by the Sapes Trust of opposition leaders, the  banning of babwe will even reach an election next
gitimacy for the country to re-engage We reject this forlorn hope about and the Research and Advocacy Unit political meetings, and the  escalat- year without a national crisis taking
with the international community.  the curative power of elections because (RAU), this framework combines the ing political violence, the conditions place. The deepening crisis within
the impediment to such a solution technical matters referred to above for Insulation remain seriously flawed. Zanu PF ahead of the elective congress
Unfortunately, it is also the solution remains the securocrat state, the deep with the political economy context. later this year suggests that the lead-
advocated by the two major political structure that controls civilian affairs in • Integrity  refers to the impartial- ership conflict is far from settled, and
parties in the country: both parties Zimbabwe. Simply, the framework proposes five ity and accountability of the election may force the securocrat state to con-
claim that the legitimacy that will pillars essential to a bona fide election: management body, Zec. There are sider other options. 
flow from an internationally accepted Thus, before any thought about many signs that Zec is not impartial as
election will prove to be the panacea the outcome of elections, there must • Information:  This refers to the is required by the constitution, includ- The economy may force other op-
that will end the crisis and resolve the be frank discussion about what actu- ability of citizens to obtain all kinds ing the significant numbers of military tions as well: the rampant and rising
deep-seated problems — political, eco- al conditions the election 2023 must of information, and not merely the personnel working in the institution. hyperinflation seem beyond the con-
nomic, and social — that afflict Zim- achieve if there is to be any sense that openness of the media to reflecting the However, it is not merely Zec that trol of the government, and, despite
babwe. the election is an acceptable basis for multiple perspectives of the electoral must be impartial in the electoral pro- the rhetoric, the living conditions of
examining reforms. constants. It also refers to the ability of cess: all government agencies must be virtually all citizens are worsening
We reject this misguided optimism citizens to engage with politicians and impartial, and this is doubtful in the weekly, if not daily.
as we have since 2016. The  constitution  states explicitly attend meetings and rallies without aftermath of the coup. The Zimbabwe
what is expected in an election in sec- fear and constraint. Republic Police (ZRP) and the Zim- Mozambique and Sri Lanka are in-
The hope about elections has been tion 155 (1): “peaceful, free, and fair; babwe National Army (ZNA) must structive here. Furthermore, the coun-
fostered by the surprising result in the conducted by secret ballot; based on • Inclusion: This refers to the notion be firmly under civilian control and try is yet to feel the full effects of the
Zambian election and the re-emer- universal adult suffrage and equality of that elections are about free and equal politically impartial as required by the international crisis.
gence of a popular opposition, the Cit- votes; and free from violence and other participation in the electoral process. Constitution. The available evidence is
izens' Coalition for Change (CCC). electoral malpractices.” There are difficulties in registering as that Integrity is wholly absent in Zim- None of these factors are propitious
Whilst it is heartening to see this, it is voters, with indications that the num- babwe and will not be present until for the holding of elections.
evident that this merely deepens the This is the basic litmus test for any bers registering are low. This is partly the coup is cured.
political polarisation in the country, election in Zimbabwe, and for these due to the perception that elections are Conclusions
and a country that is the most politi- conditions to be met, the election must never free and fair, and the  difficulty • Irreversibility  refers to several We stated at the outset that it was ex-
cally polarised in Africa. This polarisa- be able to pass a straightforward audit, in obtaining identity documents, the things. Firstly, that there is no reversing tremely doubtful that any election in
tion is reflected in the total absence of covering the transparency of several prerequisite for registering. The condi- or tampering with results: the count Zimbabwe could resolve the crisis. For
political trust by the citizens in political crucial processes, and these conditions tions for Inclusion are absent. and the outcome must reflect the will this reason, we have posed what can be
parties, the government, and the state. must be observably present before vot- of the people. Secondly, it refers to the seen as the minimum conditions for an
ing takes place. Such an audit is already • Insulation: This refers to both the acceptance of the results by the loser. election to meet acceptable standards,
The hope is also given new energy in progress with the first discussion al- ability to freely participate in elections Irreversibility has been a problem in whether those of the Southern African
by the results of the by-elections and ready raising red flags. and to freely vote, which have been every election since 2000, with the Development Community or the Afri-
the confirmation that, despite all the Pre-auditing the 2023 elections problems in most elections in the past courts a major obstacle in resolving can Union.
manoeuvring to destroy the Chamisa two decades. It refers also to the ability
faction of the MDC, the new party, Given the history of elections in
the CCC, restores the polarisation of Zimbabwe in the past two decades, it
two big parties in Zimbabwean poli- is obvious that there should be con-
tics. Zanu PF will have to face the fact siderable misgivings that this election
that no Government of National Uni- could be any different, and especially
ty (GNU) or political settlement can in the light of the statements by Zanu
take place without the CCC, and that PF that they will not accept loss and
buying time to resolve its internal cha- feel entitled to rule forever. This cannot
os has not changed the political reality be seen as mere rhetoric.
in Zimbabwe.
Furthermore, the reforms needed
The low poll, which is usually the to the state have not happened despite
case, also demonstrates the total ab- all the promises of a “second republic”
sence of political trust in the state, the and a “new dispensation”. Multiple
government, and political parties. reforms are needed before there is any
prospect that any election can create a
Citizens in Zimbabwe trust only legitimate government.
non-governmental organisations and
religious leaders, and too often the vote However, we are locked into an elec-
for the opposition is a mixture of sup- tion, with both major parties claiming
port as well as a rejection of Zanu PF, that they will be victorious, and hence
with the opposition seen as the lesser nothing will happen until the election
of two evils. is over: all regional and international
factors have no choice except to sit and
The  Afrobarometer survey in wait for the outcome.
2021 found that nearly half (49.8%) of
Zimbabweans would not vote, and did If this election can meet the stan-
not know, or would not say who they dards we have outlined above, there
would vote for. Mostly this is argued to may be a faint hope that 2023 will see a
be due to the “fear factor”, but it is also government in place that all can accept
due to the total lack of political trust. as legitimate, but our bet is that even
However, it is the case that many who these minimum standards cannot and
are  reticent  hide their affiliation  with will not be achieved. 
the opposition.
Then, the only solution will be po-
This seems strongly plausible with litical settlement, national dialogue,
the complete failure of governments and a National Transitional Authority.
since 2000 to address the deepening
poverty that afflicts most Zimbabwe- *About the writers: Ibbo Mandaza
ans, to stem the vast corruption that and Tony Reeler are Co-Conveners of
is documented nearly every week, the the Platform for Concerned Citizens
slow but steady collapse of the state (PCC).

Page 40 Reframing Issues NewsHawks

Issue 99, 23 September 2022

Zim President's address at the 77th
United Nations General Assembly
Your Excellency, Mr. Csaba
Korosi, President of the 77th Ses-
sion of the General Assembly,
Your Excellency, Mr. Antonio
Guterres, Secretary General of
the United Nations,
Your Majesties,
Your Excellencies, Heads of State
and Government,
Distinguished Delegates.

It is my singular honour to President Emmerson Mnangagwa at the 77th session of the United Nations General Assembly which is currently underway in New York, United States of America.
deliver this statement to this
august Assembly. Allow me to us, an enormous responsibility bly to urgently scale up means cal value chain, attests to my the vulnerable, has contribut-
congratulate you, Mr. Presi- to confront these interlocking to build multi- pronged ca- Government’s determination ed to household and national
dent, on your election as the challenges by strengthening pacities that must guide our to realise Universal Health food and nutrition security.
President of the 77th Session multilateralism and solidarity. collective response to future Coverage. However, in 2022, mid-season
of the United Nations Gener- Terrorism, biodiversity loss, pandemics and other global Mr President, drought and tropical cyclones
al Assembly. Please be assured desertification, pollution, and challenges. Lifting many more peo- regrettably reduced the overall
of Zimbabwe’s full support as cybercrime among other chal- ple out of poverty and performance of the agriculture
you guide our deliberations lenges reinforce the urgent Despite the illegal economic into a higher quality of life sector.
during the current Session. need to implement the inclu- sanctions, Zimbabwe success- must remain at the core of
sive and transformative solu- fully implemented its COVID both                  UN activities To this end, the climate
I also pay special tribute to tions that leave no one and no 19 National Response Strat- and the programmes and proj- change conundrum has con-
your predecessor, Mr. Abdulla place behind. egy, anchored largely by our ects of our respective coun- tinued to be an albatross.
Shahid, for leading the 76th own internal resources and tries. Zimbabwe has made sig- The United Nations Frame-
Session of the United Nations This 77th Session comes in institutional capacities.  The nificant strides towards ending work Convention on Climate
General Assembly as the world the wake of debilitating im- pro-active approach by my poverty and hunger. This has Change and the Paris Agree-
grappled with a plethora of pacts of the COVID-19 pan- administration enabled the seen the implementation ment should remain the pri-
challenges. demic that overstretched our country to achieve high vacci- of various policies and pro- mary platform for negotiating
healthcare systems and severe- nation rates, which extended grammes to support and em- our collective global response
We commend him for the ly exposed the disparities be- to children up to12 years. power communal and small to climate change.
President of the General As- tween developed and develop- scale farmers.
sembly Fellowship of Hope ing countries, with regards to Meanwhile, our focus on the All measures taken to achieve
initiative towards enhancing vaccine access. Africa is among construction, rehabilitation At the household level, the the targets and commitments
youth interest, engagement, the most affected. and modernisation of health provision of agriculture in- set under the Paris Agreement
and commitment in the work facilities across the country, puts, equipment and technical have to be implemented. Fur-
of the UN.  This will go a long The lessons from the pan- coupled with the enhanced support to farmers, especially thermore, the principle of
way towards safeguarding the demic should inspire and en- capacities around bio-tech- “Common but Differentiated
interests of future generations able the UN General Assem- nology and the pharmaceuti- Responsibilities and Respec-
as embodied in today’s youth.
Their voices must be heard
across our Governments and
within the United Nations.
Zimbabwe is privileged to be
among the pioneering benefi-
ciaries of this programme.     
Mr. President,
Delivering the 2030 Agenda
remains an urgent priority for
us all. Our theme for this Ses-
sion, “A watershed moment:
transformative solutions to
interlocking challenges” cap-
tures the importance of scal-
ing up our actions informed
by the state of our world.  The
number of persons exposed to
food insecurity continues to
increase.

Meanwhile, the scourges of
conflict and climate change
have become major drivers of
migration and refugees. The
ever looming threat associated
with the  “Triple C Crisis” of
COVID-19; Conflict and Cli-
mate Change, has placed upon

NewsHawks Reframing Issues Page 41

Issue 99, 23 September 2022

tive Capabilities” in light of such as agriculture, manufac- ly providing quality, inclu- In the same vein, my Gov- increase at an alarming rate,
the different national circum- turing, mining and tourism. sive and accessible educa- ernment is promoting heritage including at institutional lev-
stances must also be reflected. tion through the roll out of based rural industrialization els. There is need, therefore,
Our “Zimbabwe is open for a phased free primary school to guarantee improved live- to recommit to fighting these
Financing for climate business” mantra has fostered education system. The Trans- lihoods and incomes of all scourges, in all their forms and
change has remained inade- strong partnership between forming Education Summit, communities, based on their manifestations.
quate, leaving the scope for the Government and the pri- during this High-Level Week, respective unique natural re-
effective and just transition vate sector for inclusive and is a timely and welcome de- source endowments. The spread of terrorism and
to renewable energy among sustainable development. velopment which should help Mr. President, intensification of old conflicts
developing countries under revitalise the education sector, Zimbabwe is modernising, on the African Continent and
serious threat. It is our hope Massive infrastructure de- more so after COVID -19 in- industrialising based on our throughout the world have
that at COP 27 in Egypt, later velopment projects which duced disruptions. local resources and human been a setback to our quest to
this year, the developed coun- include dams, energy plants capital base. Inspired by the “Silence the Guns.”         
tries will deliver more concrete and roads have broadened our My country notes that more historic monument, Great
action on climate change, not national economic asset base work needs to be done, global- Zimbabwe, from which our In Southern Africa, we re-
just for mitigation targets, but as well as production and pro- ly to close the gender gaps that country’s name is derived, we main seized with insecurity
also, in relation to adaptation, ductivity enablers, while en- are often aggravated in times are building our country brick and terrorist insurgency in
loss and damage, climate spe- hancing regional connectivity of crises. by brick, stone upon stone, Northern parts of Cabo Del-
cific finance, technology trans- and integration. with the support of our friends gado and conflicts in parts of
fer and capacity building.  Opportunities are being cre- and partners.  As my Govern- the Great Lakes Region.
The current global financial ated for all Zimbabweans, es- ment continues to entrench
In our case, Zimbabwe is architecture has demonstrated pecially for women and youth, democracy, good governance Emboldened by our
making concerted and deliber- its inadequacies to address the to realise their individual and and the rule of law, we are SADC regional philosophy
ate efforts to integrate climate challenges that confront us. collective potential. Mile- committed to vibrant, com- that             “an injury to one is
action into our national poli- Increasing and unsustainable stones have thus been achieved petitive and peaceful political an injury to all”; we continue
cies, strategies and planning. debt burden, prohibitive cost in the implementation of SDG contestations. to pool our resources to fight
This includes strengthening of borrowing, illicit financial 5 on gender equality, leading terrorism and other threats to
resilience and the adaptive ca- flows and exploitation of nat- to expanded empowerment Notwithstanding our suc- peace, security and stability in
pacity of the most vulnerable ural resources from developing and employment opportuni- cess, the on-going deleterious our region. We appeal to the
in our society. countries, have all combined ties for both women and the effects of the illegal sanctions United Nations to render the
to relegate developing coun- youth. continue to hamper and slow requisite support to our efforts
Additionally, my Govern- tries to the periphery of the down our progress and the to restore peace in the affected
ment is implementing an am- global financial system.  The proportional repre- realisation of sustainable and areas.
bitious programme to increase sentation for women in Par- inclusive development.
the number of dams for irriga- There is therefore need for a liament is enshrined in the Zimbabwe stands commit-
tion. The programme is expect- global financial system which Constitution. Under my lead- Zimbabwe is a peace loving ted to playing its part for the
ed to create greenbelts across is just, more inclusive and re- ership, Zimbabwe has legis- country. We remain indebted realisation of peace and se-
the country, as we reduce de- sponsive to the challenges we lated reserved youth seats in to the SADC region and the curity, within various Unit-
pendence on           rain-fed face. the National Assembly. To African Union, as well as oth- ed Nations, African Union
agricultural activities while further strengthen partici- er progressive members in the and SADC peacekeeping and
enhancing export-led produc- Equally, the international patory democracy and good comity of nations for their un- peace building missions.
tion and productivity. trade architecture, under the governance, my government wavering support and calls for
World Trade Organisation, has introduced a 30% quota the removal of these unwar- The scale and gravity of our
Our comprehensive Agri- has remained largely exclu- for women in Local Authori- ranted and unjustified sanc- challenges today cannot be ad-
culture Transformation Strat- sive and indifferent to the ties. This is more important as tions. We once again call for dressed through old structures
egy is focused on increasing needs of developing countries. women bear the brunt of poor their immediate and uncon- and old ways of doing busi-
production and productivity The African Continental Free service delivery at the local ditional removal. My country ness. Zimbabwe subscribes to
across the agriculture spec- Trade Area is, thus, expected level.  welcomes the findings of the the Ezulwini Consensus and
trum. This was instrumental to be the panacea for Africa to United Nations Special Rap- the Sirte Declaration as the
in our unprecedented reali- trade and stimulate economic The establishment of Gen- porteur on the Negative Im- sustainable approach to the
sation of national wheat self growth and development. der and Youth Focal Desks pact of the Unilateral Coercive reform of the UN Security
sufficiency as well as increased within Government Ministries Measures on the Enjoyment Council.
exports in horticulture. The AfCFTA must be com- has helped to mainstream the of Human Rights, who visited Mr. President,
plimented as we strive to im- issues of young people, partic- Zimbabwe in 2021. In conclusion, Zimbabwe re-
The provision of techni- prove production and trade ularly young women. Mr. President, affirms its commitment to the
cal extension services for im- in goods and services. Liber- Mr President, At the international level, principles of the UN Charter
proved land and water use has alisation of services and the Sustainable socio-economic Zimbabwe has adopted an En- and multilateralism in the res-
seen widespread adoption of strengthening of Competition development is an indispens- gagement and Re-engagement olution of the complex and in-
climate smart agricultural in- Policy and Intellectual Proper- able imperative for the en- Policy. tersecting challenges facing our
novations,             with evident ty Rights; as well as the adop- joyment of the fundamental world. The implementation
upward increase of incomes tion of digital trade should rights of any people. The Pol- This Policy is underpinned of the inclusive 2030 Agenda
among communal and small also be enhanced. icy of Devolution and Decen- by the principles of mutual remains our biggest hope for
holder farmers as well as wom- Mr President; tralisation has seen increased understanding and respect, the future we all want.  There
en and youth in agriculture.  Education is a key driver of budgetary support, directly cooperation, partnership and is indeed a more compelling
Mr President, sustainable development with to the local authorities. Com- shared values with other mem- case for enhanced solidarity,
Zimbabwe is committed to a direct impact on SDG 4, munities right at the village, bers of the international com- cooperation and partnerships
Agenda 2030 and has to this SDG 5 on Gender Equality, ward and district levels are munity. We desire to be “a if we are to respond effectively
end mainstreamed the 17 and SDG 17 on Partnerships now making independent de- friend to all and an enemy to to these challenges and ensure
SDGs into our national eco- for the Goals.  Zimbabwe has cisions and prioritising their none”. our collective survival.
nomic development blueprint, embarked on reforms based programmes and projects in-
the National Development on our Heritage Based Educa- formed by the most pressing My country is greatly con- The UN should remain the
Strategy. We acknowledge the tion 5.0 Model which empha- needs. cerned that more than 20 years beacon and source of hope for
support of the United Nations sises on science, technology, after the Durban Declaration the global citizenry. As leaders,
in the alignment of this Strate- innovation and industrialisa- This has seen the rapid and Programme of Action, we have a weighty burden and
gy to the Sustainable Develop- tion. These are indeed neces- construction of schools, clin- hate crimes, xenophobia, racial responsibility to make the UN
ment Goals. sary tools to leap forward the ics, water and sanitation in- discrimination               and deliver to the expectations of
modernisation and industrial- frastructure and other social intolerance have continued to all the peoples of the world.
Economic reforms have isation of our countries in the amenities, in the most remote I thank you for your kind at-
been implemented resulting in developing world. areas of our country. tention.
significant progress in sectors
My Government is equal-

Page 42 Reframing Issues NewsHawks

IAN SCOONES Agric commercialisation Issue 99, 23 September 2022
affects locals' livelihoods
THE  question of how agricultural pers do not tell us much about distri-
commercialisation affects livelihoods /File picture bution, and especially the implications
has been central to the recently com- for particular groups of people, such as
pleted APRA programme (Agricultur- planted and tractor usage. creases or decrease. Intensification – in- soya), and the effect is greatest for asset women or younger farmers. Here there
al Policy Research in Africa), which, Farming pays: returns to land and creasing costs on inputs – however may poor households. ‘Hunger’ during six are wider questions raised about equity
along with Ethiopia, Ghana, Nigeria labour not always be a good idea, as returns months of the lean season (November in commercialisation trajectories.
and Tanzania, had work going on in The results are of course not surpris- may not be sufficient, and this appears to May) was assessed in relation to peo-
Zimbabwe. ing – cash crops provide cash and cash to be especially the case for the already ple’s recall of whether they had enough Another APRA paper looks at how
can be invested in assets – and the high-cost production of tobacco in to eat during the day for each month commercialisation of different crops
A core part of the Zimbabwe work pattern seen from the surveys confirm Zimbabwe, facilitated by contract ar- and various commercialisation indices was related to ‘women’s empower-
was major repeat panel surveys of what we and others have found before. rangements with companies. Contract were also used (by crop and overall), ment’. This was imputed through an
smallholder A1 resettlement farms in Further questions are raised, however. arrangements and  facilitation and in- representing the ratio between sales aggregate indicator from assessments
Mazowe district. The surveys were un- Of course, getting cash from sales is termediation of value chains by brokers value and total value. Here, the timing of whether women primarily managed
dertaken in 2018 and 2020, reflecting one thing, but what about the varied of different sorts, however, can bring of payments from the tobacco crop agricultural plots, decided on how
on the previous season’s performance, expenses of production? This is tack- bigger returns for commercial crops is crucial as this happens at the time outputs are used, decided on sales and
with a repeated matched sample of led in another APRA paper that looks such as maize. As the paper concludes, when food deficits are at the peak. involved in decisions around how crop
533. A cluster sample randomly chose across countries at ‘gross margins’ (in- overall, it pays to be a small-scale farm- sales revenue was used. Those house-
11 A1 (smallholder) resettlement comes minus expenditures) and so cal- er these days, even with relatively low Other variables that had a positive holds with high levels of commercial-
schemes in Mvurwi and 7 in Conces- culates returns to land and labour for levels of intensification, as these returns correlation with reduced seasonal hun- isation of tobacco and soya in partic-
sion and then all households in those different crops in different settings. For represent reasonable overall incomes ger were being a male head of house- ular tended not to show indicators of
areas were included. The panel design Zimbabwe, the results show (again) for a family, especially if higher than hold, having larger cropped area and women’s empowerment. As many have
allowed for confounding factors to be that farming tobacco results in good world prices are paid for maize. having access to remittances and off- pointed out before, these crops are
controlled for and analysis of effects of returns, especially to land (US$1053 Does cash cropping increase season- farm work. Of course, there is variation male-dominated, as value chains are
different variables could be discerned, per hectare), but also to labour even al hunger? across households, but the overall con- highly gendered in Zimbabwean agri-
even though the seasons were radically though labour costs are high (US$6.4/ How does commercialisation affect clusion drawn is that supporting cash culture as an  earlier APRA paper  dis-
different. day). The returns to land for maize are seasonal hunger? One of the arguments cropping is not a route to food insecu- cussed.
less spectacular (US$781/ha) but re- against cash cropping is that such crops rity. This supports  earlier findings  in
The team, led by Chrispen Sukume turns to labour are higher (US$19.4/ divert effort away from food, leaving cotton-growing areas, such as Gokwe Longer-term trajectories
and involving Godfrey Mahofa, Vine day), as maize returns are boosted be- people vulnerable. But is this the case? where in the boom cotton years, peo- A further question not really tackled
Mutyasira and others – supported by cause of the artificially high value of Can people use the cash they earn to ple did well. by these papers is how the surpluses
a large team of enumerators and others maize in Zimbabwe (compared to in- buy food and so offset any food defi- Who benefits from agricultural com- from high returns from commercial
drawn especially from Agritex – ex- ternational border prices) and it is a less cits? The results from the surveys in an- mercialisation? agriculture (for some) are spent over
plored some key questions at the top of labour-intensive crop. other APRA paper  show that overall Another important question is who time. This is important as the way as-
policymakers’ minds. Does commer- cash cropping reduces seasonal hun- benefits? This basic distributional ques- sets are accumulated affects the wider
cialisation (i.e., regular sales) of tobac- Returns are of course highly sen- ger and that this is especially the case tion requires delving into cross-house- economy and the broader trajectory
co, soya and maize result in improved sitive to changing prices, with major for tobacco and food crops (but not hold comparisons. The averages and of development in an area. Here more
incomes and accumulation of assets, swings in returns resulting as prices in- median figures presented in these pa- longitudinal studies beyond two snap-
and so reductions in poverty? How shot panel surveys, as the processes of
does the focus on cash crops influence change are slow and intermittent, and
seasonal hunger and food insecurity? affected by wider political-economic
Do women benefit from this process of dynamics.
commercialisation?
A1 farmers generating income and In our historical studies, which over-
investing in assets lap with these survey sites in Mvurwi,
These A1 areas are at the forefront of we see periods of accumulation – as-
a new agricultural revolution, particu- sociated with good rainfall years and
larly in the high potential zones of the more stable economic and political
country. They are a significant supplier conditions, such as during the Govern-
of marketed crops contributing 36% ment of National Unity – and periods
of all soybeans sold on formal mar- of stagnation (such as now), with dif-
kets, 26% of all maize registered a6s ferent impacts on the  local economy,
sales and they constitute 41% of reg- household accumulation and also  the
istered producers of flue-cured tobac- environment.
co in the country, with the remainder
made up by A2 medium-scale farms Also, over the 20 years since resettle-
and remaining large-scale farms. Even ment, the forms of accumulation have
though this is only the formally record- shifted. At settlement there was initial
ed sales (there are many, many more, investment in land clearing and prepa-
including informal exchanges), this is a ration and the building of homes; this
major contribution to the core of Zim- shifted after establishment to invest-
babwe’s formal economy. But how do ment in transport, mechanisation and
farmers themselves fare? This was the intensification of farming, including
question for the research, now reported well-digging irrigation; and more re-
in a series of APRA Working Papers. cently there has been a move by some
to invest away from the farms in busi-
In terms of income and accumu- nesses and houses for rental in town.
lation (or rather the value of asset This pattern is important because dif-
ownership, as the studies do not look ferent people gain from such shifts at
at trajectories over time), the results different times, with the linkage effects
shared in  an APRA paper  show that of land reform increasing over time.
those households engaging in tobac-
co, soya and maize sales all gain more While none of these papers offer
income and own more assets. Income anything hugely surprising – (male)
is measured as volume of sales X the farmers in Mazowe all well know that
cash gained as reported by farmers and tobacco is profitable but has high in-
assets are those reported by farmers puts costs yet can provide good income
valued according to replacement costs. and potential for investment – the con-
Tobacco producers fare best, followed firmation of the patterns across sites
by soya and maize producers. Howev- with in-depth, rigorous quantitative
er, it is those who combine tobacco and analysis, complemented by economet-
soya that have the best incomes, and it ric models, helps reinforce our under-
is the tobacco producers in particular standing, suggesting some important
who see the most impressive asset own- policy directions for the future.
ership levels. Econometric analysis sug-
gests that selling both tobacco and soya So, do delve into the papers, there’s
will result in an increase of income by lots of rich information contained
194%, “all else being equal”. Positive in them all – and some complicated
outcomes in terms of farm income are econometric equations too!
also correlated with spending on in-
puts, livestock ownership, area of land — Zimbabweland.

*About the writer: Ian Scoones is a
professorial fellow at the Institute of
Development Studies, and the direc-
tor of the ESRC STEPS Centre at the
University of Sussex in Britain.

NewsHawks Reframing Issues Page 43

Issue 99, 23 September 2022

Uncertainty buffets Zim economy: IMF

AN International Monetary Fund and eliminating exchange re- National Development Strategy 1 path to comprehensive restructur- IMF headquarters in Washington DC.
(IMF) staff team led by Dhanesh- strictions. The RBZ’s quasi-fiscal (2021-2025). ing of Zimbabwe’s external debt,
war Ghura conducted a staff visit operations should be transferred including the clearance of arrears; with Minister of Finance and
in Harare during from 12 to 19 to the budget to enhance trans- “As stated in the 2022 Article IV a reform plan that is consistent Economic Development Hon.
September 2022 to discuss recent parency, improve the conduct consultation, Zimbabwe has been with macroeconomic stability, Professor Mthuli Ncube, his Per-
economic developments and the of monetary and exchange rate a Fund member in good standing growth and poverty reduction; a manent Secretary Mr. George
economic outlook. policy, and enhance central bank since it cleared its outstanding ar- reinforcement of the social safety Guvamatanga, the Reserve Bank
independence. Structural reforms rears to the IMF in late 2016. The net; and governance and transpar- of Zimbabwe Governor Dr. John
At the conclusion of the IMF aimed at improving the business Fund provides extensive technical ency reforms. International reen- Mangudya, other senior govern-
mission visit, Ghura issued the climate and reducing governance assistance in the areas of econom- gagement remains critical for debt ment and RBZ officials, represen-
following statement: vulnerabilities are key for pro- ic governance and financial sector resolution and access to financial tatives of the private sector, civil
moting sustained and inclusive reforms, as well as macroeconom- support. society, and Zimbabwe’s develop-
“Zimbabwe’s economy has growth. Durable macroeconomic ic statistics. The IMF is, however, ment partners.
shown resilience in the face of stability and structural reforms precluded from providing finan- “The outcome of the IMF staff
significant shocks. Russia’s war would bode well for supporting cial support to Zimbabwe due to visit will serve as a key input in “The IMF staff wishes to ex-
in Ukraine, the poor rainfall, and Zimbabwe’s development objec- unsustainable debt and official the preparations for the next Arti- press its gratitude to the Zimba-
price pressures are adversely af- tives as embodied in the country’s external arrears. A Fund financial cle IV consultation mission. bwean authorities and stakehold-
fecting economic and social con- arrangement would require a clear ers for the constructive and open
ditions in Zimbabwe, already bat- “The IMF staff held meetings discussions and support during
tered by the Covid-19 pandemic. the mission.” – IMF.
Renewed price and exchange rate
depreciation pressures emerged,
notably in the second quarter of
2022, with inflation in August
reaching 285 percent over a year
earlier. After rising to about 7 per-
cent in 2021, real GDP growth is
expected to decline to about 3½
percent in 2022 reflecting a slow-
down in agricultural and energy
outputs owing to erratic rains and
rising macroeconomic instability,
amidst a recovery in mining and
tourism. Uncertainty remains
high, however, and the outlook
will depend on the evolution of
external shocks, the policy stance,
and implementation of inclusive
growth-friendly policies.

“The IMF mission notes the
authorities’ efforts to stabilize the
local foreign exchange market and
lower inflation. In this regard, the
recent tightening of monetary
policy and the contained budget
deficits are policies in the right
direction and have contributed to
the narrowing of the parallel mar-
ket exchange rate gap.

“Further efforts are needed to
durably anchor macroeconomic
stability and accelerate structural
reforms. In line with recommen-
dations from the 2022 Article IV
consultation, the near-term mac-
roeconomic imperative is to curb
inflationary pressures by further
tightening monetary policy, as
needed, and allowing greater ex-
change rate flexibility through
a more transparent and mar-
ket-driven price discovery process,
tackling FX market distortions,

Page 44 Reframing Issues NewsHawks

Issue 99, 23 September 2022

Tanzania, Zambia want to upgrade
the ‘Uhuru Railway’ – But can they?

TIM ZAJONTZ The late former Presidents Kenneth Kaunda (left) and Julius Nyerere. Tazara conveyed only 87,860 metric
HALF a century ago, the Tanza- tonnes of cargo. According to its own
nia-Zambia Railway (Tazara) stood out alisation of the transport sector and the In August 2022, Zambia’s President less attractive for a private investor. It estimates, it needs to transport at least
as a crucial symbol of Africa’s struggle for privatisation of Zambia’s mines resulted Hakainde Hichilema made his first visit would also pose connectivity challenges 600,000 tonnes a year to cover its costs.
independence. The 1 860km-long rail- in fierce competition from road trans- as head of state to Tanzania. After meet- in Zambia. Zambia’s national network
way connects Kapiri Mposhi in Zambia porters. ings with his counterpart Samia Suluhu still operates on Cape gauge, as do South The situation has improved slightly
with Dar es Salaam at the Indian Ocean. Hassan, they  announced  that the two Africa’s and Zimbabwe’s. since then, as a new management team
The eventual demise of white mi- governments had agreed to rehabili- brought down travel times and attract-
In November 1965, the unilateral nority regimes in the region further tate Tazara. They sought to upgrade its A senior Tanzanian official with ed new clients. Tazara’s governing bodies
declaration of independence by Rhode- diminished Tazara’s geopolitical signifi- tracks from Cape gauge (1 067mm) to knowledge of the matter told me that also decided to allow private operators to
sia’s  racist regime  had left newly inde- cance. Despite longer distances, a higher standard gauge (1 435mm) through a the standard gauge upgrade was part use its tracks.
pendent Zambia extremely vulnerable to proportion of Zambia’s trade started to public-private partnership. of a long-term plan under the African
its hostile southern neighbour. Zambia, move along the southern corridors via Union’s  Agenda 2063. The immediate Yet, the challenges for the compa-
a landlocked country, remained highly South Africa’s efficient ports. An upgrade to standard gauge would objective is to rehabilitate the existing ny remain huge. The biggest one is the
dependent on transport routes through enable the Uhuru railway to interlink infrastructure. outdated, in some cases inoperative, in-
Rhodesia and apartheid South Africa. It Inadequate management structures with Tanzania’s new standard gauge Ups and downs frastructure. Dilapidated tracks, bridges
relied on these to import essential goods and chronic under-investment in infra- railway. The standard gauge tracks have Since its inauguration, Tazara’s impact and buildings, a dysfunctional signalling
such as oil and coal, and to export cop- structure and rolling stock have ampli- meanwhile reached the Dodoma re- has gone beyond the immediate goal to system and insufficient rolling stock
per, its biggest source of revenue. fied the steady decline of Tazara’s cargo gion. Contracts for extensions to Tabora remedy Zambia’s transport emergency. prevent Tazara from meeting market de-
and passenger services since the 1990s. (about 740km to the north-west of Dar The railway transformed the livelihoods mands.
To address this vulnerability, then The shareholding governments had to es Salaam) and Mwanza (about 350km of hundreds of thousands of Tanzanians
president  Kenneth Kaunda  sought an regularly inject funds for outstanding further north) have already been award- and Zambians who lived – or decided to In addition, there is the factor of
alternative route to the sea. He found salaries and urgent repairs. ed. An inter-governmental agreement settle – along its route. This is meticu- mounting fiscal pressure felt in Lusaka
an ally in Tanzania’s Julius Nyerere. The Signs of renewal between Rwanda and Tanzania to build lously documented by the historian Ja- and, in recent years, also in Dodoma.
idea of the “Freedom Railway” (Reli ya In recent years, political will to refur- a line from Isaka (on the Tabora-Mwan- mie Monson in her formidable book Af-
Uhuru in Kiswahili) was born. bish the Freedom Railway – not least za route) to Kigali was signed in 2018. rica’s Freedom Railway. Under Zambia’s recently agreed In-
to reduce the expensive wear and tear Further connections to Burundi, the ternational Monetary Fund rescue pack-
The two leaders tried to solicit fund- on roads – has grown. However, tight DRC and Uganda are planned. Economically however, Tazara’s glori- age all state expenses will be put to ut-
ing. But the World Bank, several west- public finances have prevented a major ous days have long passed. most scrutiny.
ern governments and the Soviet Union recapitalisation. But upgrading Tazara to standard
declined. Nyerere and Kaunda turned to gauge would be expensive and hence In the 2014/2015 financial year For its part, Tanzania’s sovereign debt
Beijing. has rapidly increased since the onset of
the Covid-19 pandemic.
The Tazara became China’s big-
gest foreign aid project, costing about The  World Bank adjusted its assess-
US$415 million at the time. It was fi- ment of the country’s risk of debt dis-
nanced through a combination of in- tress  from low to moderate early this
terest-free loans and commodity credit year. As I recently argued in the Review
arrangements. of African Political Economy, Africa’s
current debt crisis is likely to lead to a
Tazara’s construction between 1970 new wave of privatisations across the
and 1975, and inauguration in 1976, continent.
were steeped in anti-imperialist narra-
tives that emphasised Sino-African soli- China Civil Engineering Construc-
darity. The network significantly boost- tion Corporation was recently  tasked
ed China’s influence across Africa and with conducting yet another feasibility
deepened its social, political, cultural study for Tazara’s rehabilitation. It sent
and economic ties with Tanzania and a 40-person delegation to visit Tazara in
Zambia. The railway is still frequent- early September 2022.
ly invoked by officials on both sides
as the  cornerstone  for the “all-weather The train towards privatisation seems
friendship” between Africa and China. to be picking up speed.

Throughout the 1970s and 1980s, But the issue of incompatibility be-
Tazara transported a significant share tween old and new networks shows
of copper and mining inputs for Zam- that Africa’s current “railway renais-
bia’s state-owned mines. The railway sance” requires profound regional and
increased the mobility of the rural popu- continental coordination and planning.
lation in both countries. Trading centres Integrating Africa’s railways will be a
and small businesses emerged at its doz- monumental task, considering that the
ens of stations. greater part of the continent’s network
still operates on Cape or metre gauge —
The railway recorded its peak perfor- a colonial legacy that hampers railway
mance in 1977/78, when it transported inter-connectivity to this day.
1.27 million tonnes of cargo. But it nev-
er came close to its design capacity of 2.5 — The Conversation.
million tonnes per year. *About the writer: Tim Zajontz is a
lecturer at the University of Freiburg
From the late 1980s onwards, liber- in Germany and a research fellow at
Stellenbosch University in South Afri-
ca.

XN IRAKI Ruto now in charge of Kenya’s Digital superhighway and creative
shaky economy: Where to start economy. This appeals to the youth and
KENYA'S President William Ruto, Kenya has a head-start on it. The coun-
sworn in as new President on 13 Sep- yans a radical transformation if he won. must balance the interests along the val- competition and efficiency along the try must go beyond social media to real
tember 2022, has inherited an economy But in politics, promises and reality are ue chain, from farmers to consumers. value chain is a better option. Agricul- work like gaming, outsourcing, software
saddled with debt, inflation, joblessness two different things. Implementing a ture passes the bottom-up test as many engineering and artificial intelligence.
and national pessimism. manifesto will require money and new Agricultural productivity has been citizens at the bottom of the pyramid Will Ruto return tablets to schools?
economic structures, and even face resis- the main challenge because of land frag- would benefit.
The International Monetary Fund tance from defenders of the status quo. mentation. Improvement in productiv- These sectors closely mirror  the Big
has also added to his pain: it  recent- ity takes time; from seed production to This is a very  young nation. Many Four Agenda  of the last government,
ly asked Kenya to broaden its tax base Ruto prioritised five sectors, starting logistics and even raising the purchasing Kenyans are not covered by health in- where Ruto was the deputy president.
and scrap the fuel subsidy. with agriculture. Other sectors include power of consumers. Subsidies are the surance. About 80% of Kenyans are Some are borrowed from Vision 2030,
micro, small and medium enterprises; easiest option for addressing rising food in the informal sector and affordable the National Strategy of the late presi-
Broadening the tax base will mean housing and settlement; healthcare and prices. health is out of their reach. Social secu- dent Mwai Kibaki.
bringing more “hustlers” – Ruto’s core digital superhighway; and the creative rity coverage is generally low in the in-
support base of informal workers – economy. Prioritisation of agriculture But recent  maize subsidies  demon- formal economy: 75.7% of enterprises Kenyans and others will be watching
into the tax net. That could annoy his is by no chance accidental; Ruto was strated why they weren’t the best solu- don’t pay contributions for their work- to see how Ruto’s economics will differ
political supporters. Scrapping  fuel once a minister for agriculture. Many tion. Prices of flour never came down ers into the National Social Security from those of former presidents Jomo
subsidies  will raise prices and lead to voters earn a living from farming. And a substantially, and there were shortag- Fund and National Hospital Insurance Kenyatta, Daniel arap Moi, Mwai Ki-
further  inflation, something that Ruto hungry nation is an angry nation. Ruto es. Is cheaper fertiliser promised by Fund. baki and Uhuru Kenyatta.
campaigned against. The latest fuel President Ruto subsidised? Increasing
price review, that has resulted in  high — The Conversation.
fuel prices, shows Ruto is serious on re-
moving subsidies. *About the writer: XN Iraki is as-
sociate professor in the Faculty of
Ruto made the economy the main Business and Management Sciences at
focus of his campaign, promising Ken- University of Nairobi in Kenya.

NewsHawks Reframing Issues Page 45

Issue 99, 23 September 2022

Angola: Anatomy of a stolen election

PAULA CRISTINA ROQUE fore the election. The first was to remove Joāo Lourenço. time, the judges did not ask for a verifi- activists have been threatened or arrest-
the total number of voters from result commissioners along with the press and cation of the results nor for the electoral ed by the stasi-like Service for Criminal
ON 8 September, the façade of de- sheets, making it easier to alter the num- civil society. commission to show its result sheets or investigation (SIC) and the intelligence
mocracy in  Angola  was dealt another bers. The second was to restrict access explain how it tallied the result. A con- service SINSE. And on social media
near-fatal blow. After three decades of to the national tally centre to just five Angola’s constitutional court — an- clave of ten justices failed to respect the meanwhile, alleged lists of opposition
elections and a veneer of tolerance for electoral commissioners and a “technical other purportedly neutral institution most fundamental role which is the re- leaders meant for elimination are circu-
opposition politics and civil society, the group”, thus denying admission to other heavily influenced by the MPLA — spect for public probity. They violated lating.
nation was shown to be little more than took just two weeks to consider the case their own constitution.
a thinly veiled authoritarian state. before dismissing Unita’s claims. In that Sowing the seeds of revolution This is not a new scenario. Several
Today, on 15 September, President João authoritarian regimes in Africa and be-
On 24 August, the majority of voters Lourenço will be sworn in for a second yond have subverted democratic pro-
had narrowly  rejected  the incumbent term. He will take the oath in a capi- cesses and then mobilised security forces
government. The main opposition Uni- tal under siege. One of the remarkable to eliminate peaceful contestation in
ta’s parallel vote count suggested it had outcomes of the election was Unita’s the aftermath. Often, this prefigures a
garnered 49.5% of the vote to the ruling victory in Luanda, which represents a further descent into chaos in the years
MPLA’s 48.2%, based on 94% of results third of the electorate. Urbanites, the following, fuelled by misgovernance and
sheets from 13 200 polling stations. educated youth, and even many former unaddressed injustices.
Nonetheless, the electoral commission MPLA supporters voted for the opposi-
— which is controlled by the ruling par- tion there. Understood this way, the MPLA’s
ty — announced that the MPLA had stealing of the 2022 election only secures
won with 51% to Unita’s 43.9%. It is through fear of protests in Lu- it more power in the immediate term.
anda therefore that the government The ruling party, in power since 1975, is
Unita took the matter to the Con- has  deployed  the military, police, and increasingly unpopular and, by subvert-
stitutional Court, calling for a recount presidential guard along strategic arter- ing the popular will so brazenly, seen as
and a comparison of the official results ies. Interestingly, much of the security increasingly illegitimate. This would be
with their own count. They cited wide- forces’ rank and file seem to have voted dangerous for a regime at any time, but
spread irregularities, of which there were for the opposition if results near barracks at a moment of worsening economic
many. There were an estimated 2.7 mil- are a reliable indication. conditions and growing food insecuri-
lion dead voters on the electoral register, ty, the MPLA could find it is sowing the
giving the MPLA a buffer to play with Nonetheless, columns of armoured seeds of a revolution against itself.
numbers and justify different results in police vehicles and Russian-made ka-
specific provinces. And there were ques- maze trucks now line the streets in key — African Arguments.
tions around the role of the Spanish elec- suburbs. In neighbourhoods that voted *About the writer: Paula Cristi-
tion logistics company Indra, which has for the opposition like Rocha Pinto, na Roque is the author of Governing
been accused of facilitating fraud in fa- Samba, Zango, Viana and Cazenga, the in the Shadows Angola's Securitised
vour of the MPLA in previous elections. presence of  security forces  is bringing State  (African Arguments/Hurst,
back memories of the civil war and the 2021). She has been an adviser on
There were also clear cases of creating political massacres of 1977 and 1992. sub-Saharan Africa for the Crisis
an unlevel playing field and opacity in Yet not even in the worst years of the war Management Initiative, a senior an-
the process. The state media, for exam- did Luanda have the entire security ap- alyst for southern Africa with the In-
ple, allocated the 90% of its coverage paratus on display for public intimida- ternational Crisis Group, and a senior
to the MPLA. Meanwhile, the electoral tion rather than public safety. Elsewhere, researcher with the Institute for Secu-
commission made two key changes that rity Studies.
contravened electoral law just a week be-

EDINA AMPOSAH-DACOSTA Covid-19 pandemic created Ghana, Kenya, Malawi, Mauritius,
immunisation gaps in Africa Namibia, Sierra Leone, Uganda and
THE Covid-19 pandemic exposed Zambia.
the fault lines in health systems and at health facilities. DTP3 to monitor access to immuni- power or income level.
national routine immunisation pro- A good measure of the Covid-re- sation services and measure the per- In Africa, national immunisation Of concern, however, are the 29
grammes around the world. formance of broader health systems. countries that recorded coverage of
lated disruptions to immunisation programmes in several countries less than 90%, creating substantial
A  recent  World Health Organi- programmes is the coverage of the The  WHO report  shows that the maintained optimal performance, immunisation gaps.
sation (WHO) report showed that three doses of the diphtheria-tet- Covid-19 pandemic contributed to achieving  DTP3 coverage rates
the pandemic fuelled the largest sus- anus-pertussis (DTP3) vaccine. a general decline in DTP3 coverage above 90%. These included Algeria, The increased misinformation and
tained decline in childhood vaccine The  WHO  uses the coverage of globally – irrespective of economic Botswana, Burkina Faso, Burundi, disinformation during the pandem-
coverage rates. ic also led to some decline in public
trust and confidence in immunisation
These declines threaten to undo the services. This has significantly affect-
exceptional efforts made in prevent- ed vaccine demand.
ing and controlling the devastating Charting a way forward
burden of vaccine preventable dis- The pandemic provides useful lessons
eases globally. Routine immunisation on the importance of continuous-
has prevented  two to three million ly strengthening health systems and
deaths yearly. Of the lives saved, 800 “crisis-proofing” national routine im-
000  were in the Africa region. Rou- munisation programmes.
tine immunisation has led to a dras-
tic reduction in diseases like neonatal Covid-19 has been a catalyst for
tetanus and measles. And bacterial renewed political interest in immuni-
meningitis (type A) and polio have sation programmes. But this must be
virtually been eliminated across the followed up with regional solidarity
continent. to re-prioritise routine immunisation
in the national and regional public
The repercussions of the pandem- health agendas.
ic on routine immunisation pro-
grammes in the African region are National governments will have
yet to be fully realised. What we do the responsibility to secure and sus-
know so far is that the pandemic has tain donor funding while increasing
resulted in substantial disruptions to domestic financial commitments that
national routine immunisation pro- will fill the funding gaps for national
grammes. immunisation programmes. This is in
line with the  declarations they have
As a result, the continent is seeing endorsed.
an increased number of outbreaks of
vaccine preventable diseases. But most importantly, there’s a
need to intensify demand for vaccines
In many countries health systems and immunisation programmes. This
were forced to divert limited resources is critical to build back public confi-
to combat the pandemic. This often dence and trust in vaccines and im-
left immunisation services vulnerable. munisation services in a post-Covid
world.
At the height of the pandemic, sev-
eral countries reported having to sus- — The Conversation.
pend vaccination services. There were *About the writer: Dr Edina Am-
disruptions to vaccine supply chains ponsah-Dacosta is a post-doctoral
which led to stockouts. The number research fellow at the Vaccines for
of people taking up immunisation Africa Initiative, University of Cape
services declined due to restrictions Town, South Africa.
on public gathering. Many people
also feared being exposed to the virus

Page 46 Critical Thinking NewsHawks

Issue 99, 23 September 2022

MATTHEW MARE Independent churches Church hereinafter ZCC amongst
and women's rights others.
THE New Testament elevated the
status of women who were being in women. One finds the Roman Catholic the liberation of the person from Daneel (1974:56) asserts that
considered by the Jewish society as History of Johanne Marange Church, Protestant Churches, Af- poverty. the variety of these churches
sub-human to the status of equal- Apostolic Church rican instituted/independent/ini- Freeman (2012:20) postulates means that they have different be-
ity. Jesus was the first to challenge AICs are a major unique form of tiated churches (AICs) and Pente- that AICs combine divine, phys- liefs, doctrines and forms of gov-
the Jewish patriarchal system and Christianity in Africa that sought costal Churches in Zimbabwe in ical well-being and material pros- ernance. But what makes them all
customs. to worship and express themselves co-existence. Mayer, (2004:447) perity. He went on to argue that AICs is that they have a common
in an indigenous and African set- argued that the characteristic of all if Africa is to achieve the decol- thread running through them in
For example, Jesus spoke to ting. Cox (1995:245) estimates studies on AICs is that they arose onisation process, it must adopt terms of related beliefs and prac-
women directly and in public that 50% of all Christians in Zim- in protest to the Western forms the approach taken by AICs who tice.
(Luke 7:12-13, 8:45, 13:10-16 babwe belong to AICs. and expressions of Christianity. refused Western influence, donor
ESV). In John 4:26, Jesus was first funding, Western education and According to Ranger (1985:55),
revealed as a Messiah by a Samar- In addition, according to Leaders of these churches are healthcare, Western definition of AICs arose as a result of political
itan woman and it was a woman Barrett, Kurian and Johnson characterised by the claim of re- human rights amongst others. ill-treatment by the colonial gov-
whom he appeared to after his res- (2001:821), Christians comprised ligious individual encounters and Accordingly, (Gichimu, ernment which consequently in-
urrection (John 20:11-18, Mat- 67.5% of the population as at year charismatic preaching. The two 2016:810), AICs are diverse in formed their political theological
thew 28:8-10 ESV). 2000. are the key pillars of AICs’ theol- terms of nomenclature, practice, posture.
ogies. teachings, rituals and fundamen-
Women also received the gift of Amongst the Christians, AICs tal belief systems. Women and There is a link therefore be-
the Holy Spirit on the day of the were 42.3% of the Christian be- According to Togarasei children are theologically treated tween the theology of AICs and
Pentecost (Acts 1:14 ESV) and lievers (ibid, 1995:245). The larg- (2016:1006), the theology of differently in AICs. the drive towards decolonisation
they held various key positions est phenomenon of the rise of the AICs is marked by the prosperity Some of the AICs found in Zim- as most of its teachings, ritu-
of leadership when Christianity AICs was experienced in Southern gospel. The theology of prosperity babwe include the Johanne Ma- als and practices are reflective of
started, for example in Romans Africa and later spread to other gospel denotes that God wants be- range Apostolic Church (JMAC), such. Phimister (1993:225-226)
16:1-2 Phoebe was a deacon, parts of the African continent. lievers to prosper materially, phys- Vadzidzi, Johanne Masowe eCh- posited that all these discrimina-
Philip’s four daughters as prophets ically and spiritually. ishanu, Masowe enguwoTsvuku, tory measures troubled the Afri-
(Acts 21:19), Euodia and Synty- As Kaag and Saint-Larry, Guta RaJehova, Zion Christian can mind, hence the continued
che as pioneer evangelists (Philip- (2011:1) have argued, Zimbabwe- The African Union (2015:8) growth of AICs because they were
pians 4:2-3 ESV) and Junia as an an Christianity is hugely diverse. has argued that the theology of able to provide a solution to what
apostle in Romans 16:7 (Romans many AICs is directed towards boggled the African mind.
16:7 ESV).
Hastings (1994:528) argues
The majority of African inde- that most AICs are protestant
pendents churches' (AICs) the- churches and their protestant
ologies are anchored in the Old roots allowed them to break away
Testament which supports patri- from the mission churches with-
archy in most of its verses and has out fundamental doctrinal prob-
Jewish influence. lems.

Early philosophers, influenced According to Engelke (2007:5),
by the Jewish culture, wrote ex- AICs were founded as a form of
tensively, describing women as protestant movement against
sub-human and these include St western churches, and therefore
Augustine (354-430 A.D) who function without referring to
categorically stated that wom- those western missions or church-
en were incomplete beings who es. Daneel, (1987:31) added his
needed to be governed by their voice that AICs are of African ori-
husbands. gin and were founded by Africans;
hence are largely adapted to the
Augustine, one of the key needs, life-view and life-style of
church fathers, went further to black people.
describe women as the source
of humanity’s fall and predic- In Africa the family is an im-
ament through his doctrine of portant aspect and AICs grew
original sin. According to Great- out of family units. According
house (1979:64,69), Augustine to Daneel (1988:40), most AICs
was heavily influenced by the tend to become family churches
pre-Christian Hellenistic tenden- due to the nature of the first con-
cies. verts who are usually close family
members.
Augustine went further to
blame the fall of Rome on Eve Daneel (1988:110) traced the
in his work The City of God in doctrine of infallibility within
which Eve signalled the complete AICs and how it causes faction-
fall of humanity (Thistlethwaite, alism and succession battles. And
1981:41). He reasoned that a he revealed that, AICs are pivoted
woman alone is not the image of on the founder as she/he com-
God whereas a man alone is the mands unquestionable authority
image of God fully and complete. amongst thousands of followers.
They borrow a lot from traditions
Further, Augustine went on to of kingship, hence they can be
formulate a doctrine, the Divine seen as monarchic in nature.
Order of Things, where a wom-
an, because of her evil nature, was The founder or leader tends to
to be placed under man’s gover- have undivided authority. The
nance, a God-ordained position church’s theological teachings,
that fits into the intricate schema therefore, revolve around the
called the Divine Order of Things identity, and in most cases, the
(Gundry, 1980:49). apotheosis and mission of the mo-
narchical leader. Succession prob-
The writings of Augustine in- lems and schisms wait until after
fluenced later thinkers like Thom- the death of the founder.
as Aquinas, who identified wom-
en as defective and misbegotten The AICs’ major concern was
hence they needed man to govern to develop an indigenous expres-
them. Aquinas believed that in sion of Christianity and the same
man, reason predominates unlike has influenced its practices and
theological belief systems. It is in

NewsHawks Critical Thinking Page 47

Issue 99, 23 September 2022

this context that JMAC emerged. were formed as an antithesis to the According to Jules-Rosette itinerant preacher and establish a trine of polygamy from biblical
JMAC is one of the oldest African Western founded churches. The (1987:24), Momberume took the new African ecclesia. faith bearers like Abraham, David,
independent churches in southern history of AICs and JMAC does name Johanne from John the Bap- Isaac, Jacob and Solomon, under-
Africa. in a way whisper something on tist and Marange from the tribal In his vision, he revealed that neath all that the doctrine fills the
why AICs are reluctant to accept name of the Marange Reserve. It he was instructed by the Holy numerical gap in the church. He
According to Manyonganise the human rights discourse. is pertinent to note also that Ma- Spirit to observe Saturday as the further states that, whilst polyg-
(2014:161), JMAC can be traced range, like Paul Mwazha of the sabbath day (sabata in Shona) amy is encouraged from within
back to the time of John Alex- Issues of human rights tend African Apostolic Church, was and to baptise people. According the church, it is discouraged on
ander Dowe’s Zion movement. to carry with them the form and raised and baptised in the Meth- to Wild-Wood (2008:4), he then non-JMAC members. Muphree
Dowe’s Zion movement in the texture of some Western-linked odist church. established JMAC taking instruc- (1969:1) argued that premarital
year 1905 had 5 000 followers. discourses being thrust down the tions from God through the Holy relations are forbidden and the
Ruzivo (2014:15) postulates that throats of an African society; and While in the Methodist church, Spirit. majority of girls who lose their
in 1917, Elias Mahlangu founded hence tend to have challenges Momberume disappeared into virginity before marriage are
the Zion Apostolic Faith Mission being accepted especially in AIC some hills near Mutare for six As if it is a tactic within the forced into polygamous arranged
(ZAFM). It is, therefore, indisput- circles. months. Upon his return, he re- AICs, all founders of AICs such marriages by the church.
able that the African independent emerged with a vision and inspi- as Ezekiel Guti, Samuel Mutendi
churches in other parts of south- Personal revelation also played ration to found a church (Miller, (born Tendeziso Makuwa), Paul The girls who marry as virgins
ern Africa were greatly influenced an important role in the rise and 2006:21–31). Mwazha, Wimbo, and Emmanu- are given the position of head-wife
by the developments in South growth of AICs. These revelations el Makandiwa, for example, have in a polygamous relationship and
Africa, while some were born out form the basis for its theological These personal encounters have almost similar narratives and en- those married after losing their
of some AICs in South Africa and teachings and doctrine. The rights become a norm which enables counters. virginity should remain subjects.
did spread through the agents of given to women and children are church leaders to gain respect and
migrant workers in the Wenela alleged to be the directives by God authority amongst congregants. Thus, they have a mysterious The church determines the so-
Mines. and received through extra-ordi- Their powers are unquestionable and mystical upbringing as well as cial hierarchy hence the congre-
nary visions and mystical visita- and the church is very quick to calling. Guti (Guti, 1999:21-21) gants do not have an independent
Daneel (1971:23) argues tions. dismiss any divergent views. Thus, claims to have met God, and God life. The human rights dimension
JMAC was founded by Mucha- congregants do not have freedom told him (1999:23), that all his and elements regarding the doc-
baya Momberume, son to a Mo- This is to say there is a rela- of speech which is a legal right in followers will go to heaven. These trine of polygamy revolve around
zambican immigrant who married tionship between extra-ordinary the constitution of Zimbabwe. claims made the founders of these such issues as forced marriages,
Chief Marange’s daughter. There visions, mystical visitations and churches demigods with their the- forcing girls who lost their vir-
is a political link through the in- human rights in that the former While there is a human rights ologies immune to criticism. ginity before marriage into mar-
stitution of marriage. determine the position and the dimension to it, some scholars rying old man, pre-determined
quantum of rights to be given to believe that such has helped the In all these instances or personal matrimonial hierarchy and pre-ar-
Chief Marange and Chief Tan- women and children. Thus, the church to grow. Hallencreutz encounters and experiences, they ranged marriages without the
gwena were two key political fig- AICs’ theology also recognises rev- (1998:103) noted that, to-date, will be alone, making it difficult consent of the affected girl child.
ures who resisted colonisation elation in its confession of faith. the largest AIC in Zimbabwe is to validate or dismiss their claims.
resulting in Manicaland Prov- the JMAC, a spirit-led African To be continued…
ince being declared a semi-liberal Muchabaya claimed that from Apostolic Church which was Machingura (2011:23) says that
zone. While there is no explicit his youthful age, he experienced founded in 1932. the JMAC in 2001 were estimated *About the writer: Matthew
evidence of political socialisation a lot of extraordinary visions and to be around 10 million globally. Mare is a Zimbabwean aca-
of Muchabaya Momberume by mystical visitations. The same JMAC has managed to spread to Mukonyora (1998:2) asserts that demic who holds two bachelor’s
his father-in law Chief Marange, claims are peculiar to almost all many parts of Central and South- demographically JMAC is a ru- degrees, five master’s qualifi-
there are similitudes between the founders of AICs. ern Africa (Lovett, 1975:136). ral-based church, with 13% male, cations and a PhD. He is also
two figures. 64% women and the majority are doing another PhD and has 12
Anderson (2000:250) does Daneel (1971:23) notes that in young woman aged between 20 executive certificates in different
Both resisted settler efforts, got also underscore the fact that Jo- 1932 when he was 20 years old, and 29. fields. Professionally, he is a civil
persecuted and were against any hanne Marange was born Much- upon returning from the moun- servant and also board member
form colonialism and Western abaya Momberume (also spelt tains, Momberume started to an- The church grew through in- at the National Aids Council of
civilisation. The birth of AICs in as Ngomberume) near Bondwe nounce a series of visions and en- ner and extended families. Dil- Zimbabwe.
this region indicates that AICs Mountain in the Marange tribal counters with Jesus Christ calling lon-Mallone (1978:23) believed
trust land of Southern Rhodesia. him to be a Holy Spirit guided, that, whilst the church publicly
preaches that it is drawing its doc-

Page 48 Africa News NewsHawks

Issue 99, 23 September 2022

SA’s organised crime climbs to Italy’s levels,
racing past Mexico, Somalia and Libya 

Report finds alarming
increases in mafia-type
crimes but says the sit-
uation is not hopeless.

A COUNTRY assessment of South turned terrifyingly northward which security for economic growth. You ket in Mexico, or arms trafficking only requires disrupting the ties that
Africa’s organised crime has found of course corresponds with the ‘cap- need to bring security and then you in Iraq — few host so many illicit link criminal entities with their en-
that it is climbing and now is in ture’ of the criminal justice system bring investment,” says Shaw. markets across such a broad spec- vironment, but also addressing the
the same quadrant as Italy’s — one and its destabilisation. President trum of criminal activity,” says the surrounding contexts. If only the
of the world’s oldest hubs of mafia Cyril Ramaphosa has moved to re- The graphic charts below bring us assessment. “Corruption — which criminal element is targeted, the
methods. form that system but it’s not work- right up to the present. While Es- is a component of most illicit mar- conditions that enabled, protected
ing, as the murder rate has increased kom CEO Andre de Ruyter said this kets — indirectly embeds organised and rewarded the original criminal
The chart shows that South Afri- by 38% over 10 years, the country latest stage of intensified power crime within state institutions, most beneficiaries will quickly be exploit-
ca is now moving up the quadrant assessment shows. cuts  is not because of sabotage, at- notably law enforcement agencies. ed by new actors.”
of criminality and has raced past tacks on critical infrastructure are a Small-scale bribes buy protection
Mexico, Somalia and Libya. It is in “Once again, big words failed to major reason for the energy crisis. and criminals’ ability to operate So, what can be done? Obviously,
the sphere of Guatemala, Brazil and produce big results, and most of the with impunity, while high-level cor- criminal justice system reforms need
Russia. We are now properly noto- organised crime categories identified Cable theft and a series of ma- ruption often sees state actors be- to kick in much more rapidly. Shaw
rious. in the stabilisation approach showed fia-type, organised operations at coming active participants in crime says a good start will be gun control,
little signs of being disrupted,” says Eskom were entrenched in the high or stakeholders in illicit markets,” dealing with mafia-like groups and
“This is an existential crisis but the report released on September era of State Capture. The chart be- the report says to show the impact cyber-crime which, for example,
South Africa has a degree of resil- 21. “Much of the intellectual and low shows that critical services are of corruption. It links three trends: has taken out banks and Transnet
ience,” says Mark Shaw, the Direc- ideological architecture designed under attack and harm the ability of the growth of organised crime, the systems. “Strategy does not need to
tor of the Global Initiative Against to combat organised crime at the state to function. rise of elite corruption and the ero- be a (many) years-long process,” he
Transnational Organised Crime.  systematic level remains unused or sion of state institutions.  This is says.  
(Gitoc) “It’s serious, but we can do underused.” This is evident in the collapse of where we find ourselves, but what
something about it. It can’t be a law transport networks and also of en- do we do now?  South Africa’s rich and deep civil
enforcement response alone.” South Africa now ranks 19th  in ergy networks. This week’s descent society is so embedded in the com-
the world for the penetration of into Stage 6 hell is an example of “The report serves as a call to ac- munities it operates in that alterna-
The horizontal axis shows the lev- organised crime and it’s not good organised crime at work because tion. If South Africa’s future is not tive forms of engagement can help
el of organised criminality while the company to be in, as the map shows. Eskom’s entire system of operations to be increasingly unstable, a more to broaden a response and retrench
vertical shows a society’s resilience. Our organised crime is now worse has been destabilised. strategic response to organised crime embedded networks.
Ideally, you want to be in the upper than Mexico, Somalia and Libya. is needed urgently. Policymakers
left-hand quadrant with countries The Gitoc assessment analysed from a wide variety of areas need to “In the private sector, there is a
like Norway, the UK and Sweden.  But the rankings must be viewed 15 areas of organised crime set out come around to accepting the real reservoir of expertise in South Africa
That may not happen soon. in national context and South Afri- in the charts below. This shows that threat of organised crime, and they that can bolster the state’s response.
ca has several things going for it to major areas of our lives are now im- need to act swiftly. Left unchecked, There have been offers by the private
The country assessment shows ensure that it won’t climb higher — pacted by organised crime — and organised crime and its associated il- sector to contribute staff time and
that the majority of 15 crime mea- but it requires political will. while it can be tracked back for licit markets will continue to inflict expertise to SAPS in the sphere of
sures levels are increasing with very many decades, the trendline is head- serious harm,” the assessment says. economic and financial crime, while
few stable. None are declining. “Is there enough political will? ed upward in often distressing and business may have the interest and
(At the moment), it’s reactive and felt ways. “Tackling this characteristic of ability to assist the state in other
“Below the surface, and often not fire-force based. You need long-term embeddedness in many cases not ways,” says the report.
immediately perceptible in each in- preventative responses and a strate- “Although many countries have
dividual incident, is a dark web: a gic, systematic approach. You need more developed and larger illicit — Daily Maverick.
criminal ecosystem that links many markets — such as the drugs mar-
of these countless criminal acts,
which need to be understood as the
manifestations of an escalating set of
problems, driven by South Africa’s
increasingly sophisticated, violent
underworld economy,” said Shaw.

The numbers below show
how South Africa ranks in ma-
fia-style groups, criminal networks,
state-embedded actors (what we call
State Capture) and foreign actors —
each is high at a measure of over 7
out of 10.  Foreign actors are crime
bosses who run, for example, cable
theft and export syndicates, kidnap-
ping and extortion rings as well as
what Shaw calls the “bleeding sore”
crimes of illicit mining and also the
export wing of gang activity.

The chart on the murder rate in
South Africa (below) may not look
like it, but it is the good news chart.
It shows that in the years when there
was a significant 50% decline in the
murder rate, South Africa took steps
against organised crime and it paid
a relative ‘peace dividend’. It was a
“long and sustained decline” says
Shaw, and it was achieved through
more effective gun control, among
others.

“One argument (to explain the
decline) is there was greater social
and co-operative cohesion in re-
sponding to crime,” he says.  That
period offers solutions.  More about
that later.

From about 2011, the graph

NewsHawks World News Page 49

Issue 99, 23 September 2022

Did the royal
burial deliver a
fatal blow to the
Commonwealth?

SISHUWA SISHUWA This was perhaps the most persistent ble for their leaders’ uncharacteristic UK Prime Minister Liz Truss. The late Queen Elizabeth II.
question. Complete with images, mode of transportation. that were colonised by Britain, plus The organisation may not collapse
THE burial of Queen Elizabeth II several social media users wondered one or two that wish they had been, immediately but its significance in
on 19 September 2022 dominated why African leaders who attend- For the ordinary African watching had largely become a relic in search international affairs, like that of the
much of the chatter on social me- ed the state reception in honour of back home, the sight of such leaders of a function. UK, is likely to diminish over time
dia across Africa. A careful reading Queen Elizabeth II were transported — some of whom had flown to the with greater calls for fragmentation.
of the content revealed three specific to the venue on a coach bus while UK using expensive chartered planes What largely prevented the frag- It is notable that nearly all Carib-
questions.  those from other countries were not. — squished on a bus was amusing mentation of the 56-member body bean Commonwealth countries are
Why did some African presidents This ordering, some said, indicated and provided temporary relief from for so long was not a clearly defined already voicing criticism of the mon-
attend the funeral while others did a form of racial hierarchy in which everyday problems. shared purpose, but the quiet power archy and pushing towards republic
not?  some people are seen as more im- How will Elizabeth’s death affect and charming influence of the de- status, one that was achieved by all
Nearly all of Africa’s heads of state portant than others. These reports, the future of Commonwealth? parted monarch. African countries at independence
and government were invited to at- when carefully scrutinised, turned Even before the death of Queen — except Eswatini.
tend the state funeral in the United out to be false. Elizabeth II, the  Commonwealth, a King Charles III, Elizabeth’s suc- If it is to survive, the institution,
Kingdom. In the end, only about successor organisation to the British cessor, is not as attractive a figure which has been unequal, will have to
half of the continent’s leaders ar- The truth is that almost every vis- Empire, comprised of the countries as she was, lacks her enigmatic cha- transform and find a new common
rived in London. These included iting leader attending the event was risma, and, in a world of celebrity purpose relevant to the times. A key
King Letsie III of Lesotho; Crown accorded similar treatment. This in- status and social media, will have a question in this regard relates to who
Prince Moulay Hassan of Morocco; cludes foreign royalty and the leaders tougher time keeping it together.   becomes the body’s next leader. Will
President Cyril Ramaphosa of South of India, Canada, Australia, Germa- Charles be in charge and — if so —
Africa; Nigeria’s vice-president Yemi ny, Singapore, Norway, France, and will he be as tactful as the queen was?
Osinbajo; and Nana Akufo-Addo, other European and Asian coun- Or will he be outspoken, as he re-
the president of Ghana. Others were tries. The exceptions included the cently showed when voicing his op-
William Ruto, president of Kenya; president of the United States Joe position to the UK’s plans to repatri-
Paul Kagame, president of Rwan- Biden, who was allowed to use his ate illegal migrants to Rwanda? Or
da; Ali Bongo, president of Gabon; armoured presidential limousine, will the next leader of the Common-
Hage Geingob, president of Namib- nicknamed “The Beast”, because of wealth come from Canada, Australia
ia; Samia Suluhu Hassan, president concerns about his security. or even Africa in a bid to make the
of Tanzania; Macky Sall, president organisation more representative?
of Senegal and chairperson of the American war adventures across Questions also remain about how
African Union; Christophe Mboso the world have over the years height- long the monarchy, an ancient he-
N’kodia, the president of the Na- ened the threat on any US president reditary institution that is not uni-
tional Assembly of the Democratic whenever they travel overseas. This versally popular even within the UK,
Republic of Congo; and General experience contrasts sharply with will survive as a central part of mod-
Abdel Fattah al-Burhan, Sudan’s that of most African leaders, who do ern British democracy.
military leader. not bomb their way out of problems As a result, the future of the Com-
they cannot resolve peacefully or monwealth may ultimately be de-
Those who attended the funeral through diplomacy. cided by the fate of the monarchy
may have sought to use the opportu- itself. For now, its obituary remains
nity to informally convene with oth- The reaction of many Africans in draft form.
er world leaders, including the new to the false reports that their lead- — Mail & Guardian.
UK prime minister, Liz Truss. Oth- ers were the only foreign dignitar- *About the writer: Dr Sishuwa
ers may have been motivated to do ies who were bussed to the funeral Sishuwa is a post-doctoral research
so by the desire to pay their final re- does suggest two things, however. fellow in the Institute for Democ-
spects to a fellow human being who The first is that for many in Africa, racy, Citizenship and Public Policy
was head of the Commonwealth, in the indignities of the colonial period in Africa at the University of Cape
line with the pan-Africanist ideals of and suspicions of marginalisation are Town in South Africa and a lectur-
recognising common humanity. not distant in memory. er in modern history at the Univer-
sity of Zambia.
Some, like Ramaphosa, may have The history of trauma, combined
placed economic entanglements at with the resurgence of dangerous
the heart of their decision-making, right-wing populism with racial
more so knowing that South Africa overtones in much of Europe and
is home to the largest British diaspo- the rest of the world, has left many
ra in Africa. on the continent hypervigilant.

Those who stayed away, particu- The second point is that many
larly if used to travelling with splen- Africans are also drawing sharp con-
dour, may have sought to avoid the trasts between the spectacle of their
“humiliation” of being “herded” leaders’ willingness to use buses in
onto a bus for the funeral. the UK and the extreme pomp that
characterises their travel within their
Others probably had more urgent respective countries.
and pressing domestic priorities to
resolve, while some may have found In the UK, the Netherlands, and
it difficult to justify the cost of a trip Scandinavian countries, for in-
to the UK and another to the US for stance, it is normal for elected public
the ongoing United Nations General officials to go to work on buses or
Assembly within the same week. bikes – the same mode of transport
that the majority of their citizens use
What perhaps raised eyebrows every day. Travel in luxury and flashy
and outraged many human rights entourages is generally frowned
groups was the invitation extended upon. 
to Sudan’s military leader, General
Abdel Fattah al-Burhan, who presid- In contrast, many African leaders
ed over the Khartoum massacre that travel domestically with such ul-
resulted in the death of at least 40 tra-flamboyance that it is as if their
peaceful protesters in June 2019.  very existence is only validated by
Were African leaders the only for- opulence.
eign dignitaries bussed to the state
funeral?  All along, they had made their
harmless citizens believe that it was
impossible for them to travel any
other way. This explains why many
across the continent initially thought
that racism must have been responsi-

Porsche just got angrier Being a Fashion Model

&Life Style

STYLE TRAVEL BOOKS ARTS MOTORING

Page 50 Issue 99, 23 September 2022

Tamy Moyo inks
another deal

JONATHAN MBIRIYAMVEKA

SONGSTRESS Tamy Moyo recently inked a lucrative deal with a prop-
erty developer, Membership Class Movement (MCM), a VVIP brand
that specialises in events, celebrity promotions and lifestyle.

The talented 24-year-old was named brand ambassador of MCM
VVIP at a glittering event marked by pomp and fanfare.

Only last year, Tamy signed another lucrative deal with Zimoco, the
only official distributor of Mercedes-Benz passenger and commercial
vehicles in Zimbabwe.

As brand ambassador of the country’s leading company in the motor
trade, the Ndibereke hitmaker became the first person in Zimbabwe to
drive the Haval Jolion vehicle.

And it appears there is no end in accolades coming her way after
MCM VVIP picked her among the young crop of musicians to be am-
bassador.

“I am excited about the partnership with MCM VVIP because for
once as artistes we are getting the recognition that we truly deserve and
it’s amazing to be working with the brand,” said Tamy, who has over 248
000 followers on Facebook.

Apart from her ambassadorial role, Tamy will be featured at several
concerts organised by MCM VVIP and the latest, slated for 22 October,
is dubbed:  #Business is pleasure at the Palms in Borrowdale.

“The show is designed to host business leaders, captains of industry,
celebrities, socialites and the who’s who in Zimbabwe for a night of
great entertainment and an opportunity to do business in a pleasurable
manner,” Anthony J Mcmullen Jn, the chief executive of MCM VVIP,
said.

Designed from a passion to see business and pleasure mixing in one
place, the event will act as a platform to network, socialise and promote
the Zimbabwean entertainment scene.

“As MCM we want to contribute to the wellbeing of the people of
Zimbabwe in business by creating an environment that is pleasurable
and yet an opportunity to pitch one’s value proposition in a relaxed
manner.

“We are simply saying you can do business while having pleasure.
Business is pleasure. The night is going to be filled with glitz and glam
from the venue settings, sitting arrangements and a uniquely designed
stage for all the performances,” he said.

Billed to perform are some of the best male artistes in Zimbabwe,
including Nutty O who is riding high with songs such as Handipere
Power and Open Doors, rapper Holy Ten and Ishan, who are also cur-
rently chart topping on all radio stations.

Tamy started singing at the age of seven.
While in Form One at Harare’s Westridge High School, she was
handed her first ambassadorial role, with Childline Zimbabwe, joining
no less a music luminary than the late iconic Oliver Mtukudzi.
Born Thamsanqa Moyo on 5 January 1998 in Harare, the youthful
artiste performed at New York’s famous Madison Square Garden at the
tender age of nine, marking the beginning of her journey in the indus-
try.
She is the current best female artiste in Zimbabwe as of the 2019
National Arts Merit Award winner.
Tamy has done a collaboration with Jah Prayzah and has shared a
stage with the likes of Mtukudzi, Mafikizolo and Joe Thomas.
The international market has also opened up for her, having per-
formed at Coke Studio Kenya, Norway’s Oslo Festival as well as the
Mother Africa Festival in Germany, Switzerland and Austria.
As an actress, she is best known for her role in the 2020 film, Gonare-
zhou.