Price US$1 Friday 6 October 2023 NEWS Tobacco smuggling between Zim-SA now security threat Story on Page 5 NEWS Mnangagwa’s shocking ethnic hegemony project unmasked WHAT’S Story on Page 14 INSIDE SPORT For some strange reason, we seem to think that rules shouldn’t apply to us Story on Page 58 ALSO INSIDE No government without consensus CIO raises alarm over illicit army gold mining
Page 2 News NewsHawks Issue 151, 6 October 2023 BRENNA MATENDERE ZIMBABWE’S state security agency, the Central Intelligence Organisation (CIO), has raised serious national security fears over an illicit gold mining operation run by an army-owned company, Rusununguko/ Nkululeko Holdings (Pvt) Ltd, in the Eastern Highlands, saying it poses a threat to the nation from across neighbouring Mozambique. The CIO fears that the military’s illegal alluvial gold mining activities on the porous border with Mozambique in the eastern region have rendered the country vulnerable to environmental degradation, smuggling and infiltration by terrorists through that fault line. Zimbabwe and Mozambique share a 1 423 kilometre-long north-south eastern boundary drawn during colonial times by Portugal and the United Kingdom. A recent investigation by the Qatar-based international broadcaster Al Jazeera on gold smuggling, money laundering and corruption said Zimbabwe is losing US$1.5 billion annually through illicit trade and trafficking in metals and minerals, in this case gold in particular. The army’s gold mining operation in Mutasa district, Manicaland province, on the eastern border between the two countries, has created an illegal crossing point and route through which gold is smuggled across the porous border below the radar. Illegal mining activities and clashes over natural resources have led to violent local conflicts across many different African countries. In neighbouring Mozambique, Islamist jihadists have been fighting the government in the northern gas-rich Cabo Delgado region. Strong research-based evidence links mining of minerals in many African countries to local conflicts. This is because minerals are prized by activists, insurgents and even rebels as a source of financing. Examples include the “blood diamonds” in Sierra Leone and Liberia in previous conflicts, as well as the Democratic Republic of Congo’s endless wars over natural resources. Even in Zimbabwe, there have been violent conflicts over alluvial gold and diamond mining in recent years, especially in the gold fields involving "mashurugwi" and at the Chiadzwa diamond concessions. The country has previously seen a surge of attacks by gangs associated with the burgeoning artisanal mining sector, taking hundreds of miners’ lives. The murky Manicaland project is being done by the military in conjunction with a firm owned by a Lebanese national. The CIO views the army’s gold mining operation as a product of a criminal network using the military cover to enrich individuals. The operation is the brainchild of the late Foreign Affairs minister Sibusiso Moyo, who was a retired Lieutenant-General. Moyo was instrumental in the November 2017 coup which brought President Emmerson Mnangagwa to power. The army has vast investments in various sectors of the economy, including the media after securing a television licence to operate its NRTV station. An intelligence memorandum dated 11 September 2023 says the army mining operations, which are also irregular as they are alluvial or on the riverbed, pose security problems because of an undesignated route that has been opened from across the border to the project site. Riverbed mining has been banned in Zimbabwe, although some mining syndicates are defying it. The Mutasa project has created a corridor for smuggling, which invites illegal miners and illicit trade that, in turn, attracts all sorts of players, including contrabandists, money launderers and possibly insurgents. The road from Mozambique to the mining area was opened by Rusununguko/ Nkululeko Holdings for the purposes of transporting its mining equipment from across the border to the site where it partners a company called Mutare Project Cooperation. Mutare Project Cooperation is not registered in Zimbabwe, but in Mozambique, according to the CIO memo. It is fronted by a Lebanese national, El Fakih Hussein, (passport number AB1084246) and a Chinese national, Ren Wei, (passport number EJ7488485). Part of the communication reads: “This submission serves to inform C.I. HQ on the activities of Rusununguko Nkululeko Holdings, an investment entity linked to the Zimbabwe Defence Forces (ZDF). “According to contacts, said the project at Nyamukwarara commenced on 02 September 2023, with Rusununguko Nkululeko Holdings initially claiming to be rehabilitating Nyamukwarara River yet they are actually mining gold. “Checks with sister Branch 1 Mutasa Station and B1 Provincial Operations indicate that a Provincial Ferret team visited the area in question on 05 September 2023, which visit established a number of anomalies.” Nyamukwarara is in Mutasa, Manicaland region. It is a resource-rich area with gold and timber situated in the far end side of the border with Mozambique. The army has joined Chinese companies mining alluvial gold and processing timber amid serious environmental degradation and destruction. The community there feels under siege and neglected by the extractive mining companies. Most villagers were relocated without compensation. The rivers are polluted and the ecosystem has been disrupted, while there is no basic infrastructure such as bridges and roads to an extent that if it rains some children do not attend school. This is what partly led to the Cabo Delgado conflict. The intelligence communication says the CIO is concerned that the mining operations pose a serious national security risk and a threat to peace and stability. “Of critical importance to this office is that the graded road from Mozambique has become an express way for smuggling and considering recent insurgencies in Mozambique this is a serious cause for concern,” it says. “Quite recently, Rusunguko are reported to have brought in three (3) earthmoving machines from Mozambique through said undesignated roads. Checks with Zimra and Ministry of Transport revealed that no customs or other official authority was granted for the equipment and for the grading of the road.” The Cabo Delgado conflict has its roots in the pre-existing socio-economic marginalisation of northern Mozambique, political and extremist religious ideology, and inequalities worsened by the discovery of minerals and natural gas deposits in the region, which threatened the livelihoods of CIO raises alarm over illicit army gold mining The Nyamukwarara River in Mutasa District, Manicaland Province, tributary of the Honde, drains some alluvial gold mining and panning areas in both Zimbabwe and Mozambique, where it collects a large quantity of sediment that remains visible along the river beyond Tete Bridge in Mozambique.
NewsHawks News Page 3 Issue 151, 6 October 2023 the local population. Since 2017, Cabo Delgado has been the scene of a deadly insurrection, prompting intervention by the Southern African Development Community and Rwanda, among other foreign actors. While foreigners have joined in the name of jihad, most of the Mozambican rank and file militants are motivated by perceived socio-economic exclusion amid major mineral and hydrocarbon discoveries in the region. The conflict threatens national stability, just as Mozambique is fulfilling a peace deal with its main opposition party in the central region, while it risks becoming a new frontier for global jihadists to exploit. More than 800 000 people have been displaced by the conflict since 2017, while around 3 700 have been killed due to the conflict. The CIO memo also says the mining site visited by Manicaland Provincial Ferret team on 5 September 2023 established the presence of foreigners who included Mozambican nationals operating there, and five Chinese. The foreign nationals were reportedly contracted by Hussein on behalf of Mutare Project Cooperation. The site manager was identified as Anuel Sebastio Petrosse, a Mozambican who is being assisted by Weng Dilngjiang, a Chinese. “Checks with the Immigration Department Eastern Region revealed that no work permit applications have been lodged in respect of said foreign employees,” the intelligence memo reads. The communication also says current engagements with contacts in the area by the CIO showed youths aligned to Zanu PF are angry over the presence of foreigners and impunity in mining by the army and its partners. “This comes against the backdrop of youths previously having been stopped from conducting alluvial mining in the area over pollution concerns. Furthermore, locals in the area are querying as to why a mining venture in Zimbabwe would employ Mozambicans and not Zimbabweans,” reads the memo. “Of note, the activity by Rusununguko/ Nkululeko Holdings regards alluvial mining along rivers is not the first in the province as the entity previously did a similar venture between 2019 and 2020 in Ward 22 Chimanimani East along the confluence of Rusitu and Haroni Rivers before being stopped.” The document says the CIO is increasingly concerned over the grading of the illegal road and employment of foreign nationals without following due processes and proper documentation. “The road has created an easy illegal entry point that may facilitate smuggling out of gold and other precious minerals, more so against the backdrop of Mozambique having recently built Minerals Trading Hubs for buying and selling minerals, including a hub in Manica Province in the neighbouring country,” the memo says. “Further to that, the illegal point will embolden already existing smuggling syndicates through giving them an alternative route relatedly, given the ongoing Islamic insurgency in Cabo Delgado Province of Mozambique, there is risk of security suspects entering the country through the undesignated road and establishing terrorist cells in Manicaland and the country as a whole.” The CIO again flagged the army company for not conducting security checks on the people working for it. “Rusununguko/Nkululeko Holdings has also seemingly not vetted the foreign nationals working at their alluvial mining activity, hence they may be inadvertently harbouring persons of security concern. The station is pursuing the matter with a view to establish finer details on the matter,” reads the memo. Farai Maguwu, Centre for Natural Resources Governance director, condemned Rusununguko/Nkululeko’s dodgy mining activities. He said government must intervene and take corrective measures. “This is a product of militarisation, securitisation and politicisation of minerals and confirms our long-held view that mining is now a big threat to national security and human security. The state is becoming weaker and weaker, while organised crime is on the rise,” Maguwu said. “The government must tighten mining regulations and enforce them. No organisation or entity must be allowed to operate outside the law as doing so leads to anarchy, with far-reaching consequences on peace, safety and security of citizens.” Zimbabwe National Army public relations director Colonel Alphios Makotore, in written response to questions from The NewsHawks, said: "Please be informed that we have forwarded your questionnaire to our higher headquarters. You make follow-ups with Wing Commander Mademe at Defence Forces Headquarters." When contacted for comment, Mademe said Makotore had erred in referring the reporter to him even though he had been briefed on the questions. "I am not the director of public relations at the ZDF headquarters. The director is Colonel Charles Mutizhe. I am just in-between the protocol. His (Makotore) counterpart is Colonel Mutizhe. He is the one who must comment," he said. Mutizhe promised to provide written responses to the questions on Thursday morning. In a follow-up in the afternoon, he said: “I will revert back to you.” However, he did not come back to The NewsHawks. In August last year, Defence minister Oppah Muchinguri-Kashiri was cornered by the then independent Norton MP Temba Mliswa over the opaque investments and business dealings of Rusununguko/Nkululeko. Mliswa took on Muchinguri-Kashiri over the business entity which symbolises the opaque commercialisation of the military without transparency and accountability. He said the shadowy firm is not benefitting junior soldiers, but a small clique of the military top brass. This led to his dramatic ejection from Parliament by the then deputy speaker, Nomalanga Mzilikazi Khumalo. To put the issue in context, Mliswa said although he had no problem with the army investing through Rusununguko/Nkululeko, the company must be audited and held to account to avoid corruption, looting and impunity. CIO Director-General Isaac Moyo Zimbabwe Defence Forces commander Phillip Valerio Sibanda
BERNARD MPOFU PACIFIC Cigarette Company (PCC) – run by local business mogul Adam Molai – has been forced into voluntary corporate rescue under the weight of a US$19 million tax bill as the government weaponises taxation to deal with real or perceived political opponents. Official sources say the Zimbabwe Revenue Authority (Zimra) was pressured from the highest political levels to slap PCC with a US$19 million tax bill after speculation that Molai was funding former Zanu PF political commissar and minister Saviour Kasukuwere to challenge President Emmerson Mnangagwa in the recent presidential election. Kasukuwere was controversially disqualified from the disputed poll by the High Court. Mnangagwa claimed a victory in the election, hotly disputed by his bitter rival, the main opposition CCC leader Nelson Chamisa. In the run-up to the elections, which included parliamentary and municipal polls, it emerged within intelligence circles that a report had been written accusing Molai of supporting Kasukuwere. Molai and Kasukuwere are personal friends, although the business tycoon says he never gave his buddy a cent for the election. Mnangagwa’s government clearly does not believe him, judging by the weaponisation of tax to shut down his business. The Johannesburg-based Molai is married to the late former president Robert Mugabe’s niece. When Mugabe was ousted in the November 2017 coup, Molai felt unsafe and left the country for South Africa. During the 2018 elections, Molai was accused within government of funding the National Patriotic Front (NPF), a political party founded on 19 November 2017 by leaders of the expelled Zanu PF G40 faction which supported Mugabe and his wife Grace. It was led by retired Brigadier-General Ambrose Mutinhiri and was associated with key G40 figures. It won one seat, Kwekwe Central, in 2018. An intelligence source told The NewsHawks: “Molai was suspected of funding the NPF in 2018 and now in 2023 Kasukuwere. As we told you before the elections, Mnangagwa’s government is taking punitive action against him. They are weaponising taxation, using Zimra, to close down his business for political reasons. He has been hit with a US$19 million tax bill and his company will go into business rescue next week. He can’t survive the tax issue as if it’s business as usual.” In 2018 the National Social Security Authority was unleashed on Molai. The Insolvency Act in Zimbabwe permits shareholders or directors, to voluntarily place the company under corporate rescue when it is in financial distress. This provides the company facing closure, prospects of restoration, without claims from creditors derailing the process. Sources said Molai has decided to do this after his company was instantly brought down to its knees through Zimra. Efforts to get comment from him were unsuccessful as he did not answer or return The NewsHawks’ calls and messages. Prior to the current Insolvency Act [Chapter 6:03], which came into effect in 2018, local jurisdiction conducted judicial management proceedings prescribed under the old Companies Act. The change from judicial management to business rescue was influenced by a number of issues, including the stigma attached to entities under judicial management as hopeless insolvents and the contention that such proceedings would be initiated to wind up such entity and liquidate. Analysts say up to 90% of Zimbabwean companies under judicial management either failed to survive or were in that position for extended periods. Corporate rescue is focused on bringing relief to financially distressed entities. The intelligence source added that Molai was being punished for real or perceived political activities. Molai previously said he does not dabble and will not be involved in politics. “Taxes are an incredibly powerful tool which can be used for political ends. The most dramatic example in recent years is that of Mikhail Khodorkovsky, an oligarch who was Russia’s richest man at one time. He is now exiled in London after serving jail time under President Vladimir Putin. Taxation can be a deadly political weapon,” the source said. Khodorkovsky was convicted of tax evasion, fraud, embezzlement, and more in 2005. Judges in this Moscow courthouse spent 12 days reading the voluminous guilty verdict out loud, amidst demonstrations outside from both sides. Khodorkovsky was one of the oligarchs, a buccaneer who picked up newly privatised state assets at bargain prices after the 1991 break-up of the Soviet Union. He spent US$300 million to buy hundreds of oil wells. Within a few years, his major company, Yukos Oil, was pumping one-fifth of Russia's crude, and carried a market value of US$40 billion. Khodorkovsky amassed a personal fortune of some US$15 billion. With money and influence, Khodorkovsky began to dabble in politics too. In the process, he financed opposition candidates, and began criticising Putin's government. There was speculation that he might even run for office someday. In October 2003, Russian Special Forces launched a raid on the tarmac of a Siberian Airport, and seized the oil tycoon at gunpoint. After raiding the Yukos offices, Russian authorities levelled seven charges against him and business partner Platon Lebedev, including illegally acquiring state assets through rigged auctions, and using tax shelters to hide company profits and evade billions in taxes. From behind bars, Khodorkovsky denied it all. But in December 2004, with the billionaire still in jail, the Russian government sold off Yukos's prime asset to a state-controlled entity to pay back taxes. The trial drew international attention. On a visit to Moscow at the time, United States secretary of State Condoleezza Rice said at the time the trial's outcome would affect how the world viewed Russia's political and investment future. However, Putin consistently maintained that it was a simple tax evasion case against a corrupt business and its owner, and nothing else. In an interview, Putin said: "It is wrong to cast the criminal side of this case as political." Khodorkovsky's attorneys charged the prosecution was political, a vendetta orchestrated by the Kremlin against a man who was becoming too powerful for its liking. Neutrals said it was both politically and economically motivated. PCC, formerly Savanna Tobacco, has some of the finest offerings in the market such as Pacific, Branson and Pegasus brands. Specifically the brands include Pacific Storm, Pacific Breeze, Pacific Blue, Pacific Gold, Pacific Mist, Pegasus Hong Ma, Pegasus Spring, Pegasus Sky, Pegasus Toasted, Branson Flame, Branson Mint and Branson Royal. The company, based on No. 424 Gleneagles Road in Harare, is currently run by Itai Gift Watinaye and chaired by Molai. Previously, Yves Le Boulengé was the chief executive. The birth of Savanna Tobacco, as PCC was previously known, in 2002 came from an idea by Molai and Nick Havercroft to use the tobacco grown by Nick, who was a big tobacco farmer in Marondera, to produce cigarettes. However, following the chaotic land reform programme and careful consideration, a decision was taken to abandon the idea of converting their own tobacco to cigarettes and get a licence to do contract production of tobacco. When they got the licence, they managed to get various partners on board, including British American Tobacco. In 2004, cigarette manufacturing then commenced and the Pacific brand was launched. Now PCC was producing international-quality cigarettes with the finest Virginia tobacco in the world. That was before Zimra arrived with a US$19 million tax, forcing the company into busines rescue. Corporate rescue can either be voluntary or involuntary. In the absence of any liquidation proceedings by or against a company, a board of directors may voluntarily initiate corporate rescue through a resolution (section 122(1) (2) of the Act), which is what PCC has done. Page 4 News NewsHawks Issue 151, 6 October 2023 Taxation deadly political weapon Govt weaponises tax to shut down Molai’s cigarette firm Business mogul Adam Molai
NewsHawks News Page 5 Issue 151, 6 October 2023 MOSES MATENGA SOUTH Africa is drowning in illicit cigarette smuggling which has seen the neighbouring country losing at least R50 million (US$2.6 million) daily in potential revenue from well-coordinated syndicates involving high-profile politicians and business tycoons on both sides of the Limpopo River, a Zimbabwe Investigative Journalism Network (ZIJN) investigation — published in collaboration with The NewsHawks — has shown. So rife is the cigarette smuggling between Zimbabwe and South Africa mainly through the Beitbridge Border Post, sub-Saharan Africa’s busiest inland port of entry, that the authorities across the Limpopo told ZIJN the issue has now become a national security threat as dealers sponsor organised transnational cartels and criminal gangs involved in illegal activities that breach border and immigration controls at will. This poses border and national security threats for South Africa, officials say. The heightened flow of illegal immigrants into South Africa from Zimbabwe is not the only problem between the two countries. There is also the issue of tobacco smuggling which is rampant. Illicit tobacco trade in region is characterised by two key factors: South Africa provides the largest, most profitable, and thus important consumer market and cigarette production hub, while Zimbabwe is the biggest tobacco producer in the region and indeed the continent. The trade is widespread and smuggling syndicates and networks criss-cross the region. Besides Zimbabwe and South Africa, illicit cigarettes are also sold in and trafficked through neighbouring countries Botswana, Namibia, and Mozambique. However, the most significant smuggling routes into South Africa from Zimbabwe go through Beitbridge across the crocodile-infested Limpopo River. Interviews with the Zimbabwe Republic Police and South African Police Service confirm ZIJN’s independent findings that despite attempts to deal with the long-standing issue, the scourge remains rife mainly through illegal crossing points. How cigarettes are smuggled into SA Investigations, which include interviews with truck and bus operators in Harare, as well as observations and engagements with some involved smugglers in Beitbridge, show that ordinary people, better-known as runners, are used to transport cigarettes using plastic bags they carry on their back. Documentary evidence, that includes pictures and videos from different sources and made available since last month from multiple sources, also shows dozens of people carrying huge boxes of cigarettes being assisted by South Africa security officials to cross the fence using illegal points, an indication of connivance from border patrols. The smuggling phenomenon is well-documented. Insiders say small-scale smugglers work with state security agents from both South Africa and Zimbabwe, whom they pay money ranging from R500 to R1 500 for passage. Smuggling cigarettes using buses is also rife at the border where it emerged local buses charge different fares ranging from US$450 to US$1 500, depending on the consignment. Statistics availed by the South African Revenue Services (Sars) show that at least 500 people who cross the border daily are smuggling no less than two master cases of illicit cigarettes on their backs. The cigarettes, it emerged, are then loaded into trucks across the border and small vehicles which use alternative routes alongside the border into some local farms where they are kept as they plan for a next move. One of the sources at the border post confirmed how illicit cigarette smuggling is made through several villages in Beitbridge and South Africa’s Limpopo province. Villagers from Malale, Madimbo, Gumbu, Bennde-Mutale and Masisi in South Africa say they witness the transportation of cigarettes daily across the Limpopo River. Smuggling is rife as traders seek to avoid value-added tax and other taxes, multiple sources that include Zimbabwe Revenue Authority (Zimra), police from Zimbabwe and South Africa and other officials said. Limpopo provincial police spokesperson Colonel Malesela Jonathan Ledwaba confirmed arrests of cigarette smugglers were being made daily and that only last Saturday, a 48-year-old man was nabbed and is expected to appear in court this week. The suspect, Ledwaba said, was flagged by the police and searched, leading to the discovery of smuggled cigarettes. This, sources said, was only a tip of the iceberg and, in some instances, law enforcement agents are involved. Every now and then smugglers are arrested between Zimbabwe and South Africa. South Africa Police Service (Saps) national spokesperson Brigadier Athlenda Mathe could not immediately respond to enquiries despite earlier promises to do so. However, Zimbabwe Republic Police national spokesperson Assistant Commissioner Paul Nyathi confirmed illicit cigarette smuggling was giving the law enforcement agency a headache. He said police were working with their South African counterparts to curb the scourge. “The ZRP has an ongoing operation targeted at fighting smuggling of cigarettes and other items,” Nyathi said. “With regards to cigarettes, we are working together with Saps in terms of fighting and curbing smuggling through the Beitbridge Border post. We have made arrests and recovered some cigarettes,” Nyathi said. He said the police have engaged tobacco companies and manufacturers to ensure they play a part to curb smuggling in or out of the country. Connivance of police, other authorities Six Saps officers were in July arrested for corruption at the border post and appeared in court for the smuggling of illicit cigarettes. This was confirmed by Limpopo police and also their Zimbabwean counterparts, who added that farms in Limpopo province, close to the Beitbridge post, are being used as temporary warehouses for the illicit cigarettes as shown by the number of arrests. In June, the Hawks arrested five suspects after discovering illicit cigarettes with an estimated value of more than R30 million on a farm. An insider said to get to their destinations, their trucks use small and private roads to avoid tollgates, roadblocks, and ad-hoc searches by law enforcement on main roads. It also emerged through interviews with bus and truck drivers that some of their colleagues mislead authorities by falsify their cargo. Some of the drivers misrepresent to the authorities that they will be transporting fuel or cotton when in actual fact they will be smuggling cigarettes. The use of fuel or gas tanks to smuggle cigarettes is common. One of the gas tanks used to transport fuel was seen at Toitskraal farm in Limpopo by the authorities. “For instance, he can be driving a truck full of sugar, but cases of cigarettes will be hidden in his truck,” an insider said. “At times, this is done with the knowledge of patrol officers who are given bribes. In other instances, they do it alone. In most cases when a smuggler is caught it is either he would have failed to pay a bribe or it was through a tip off. “On the South African side there are scanners that detect when there are cigarettes being transported. However, there is a way to go around them. You just have to pay the officers and you pass.” For those who continue to use the official border crossing at Beitbridge, buses with hidden compartments are used to smuggle cigarettes, as they are not scanned but only subject to sporadic road checks. Experts say illegal cigarettes are identifiable mainly through their pricing. Cigarette manufacturers must pay VAT and excise tax for every pack of 20 cigarettes sold. This translates to around R20 per pack. So, any pack of 20 on sale for less than R20 would have been smuggled. A former smuggler says that one of these cigarette-smuggling cartels involves politicians Tobacco smuggling between Zim-SA now security threat
Page 6 News NewsHawks Issue 151, 6 October 2023 in the highest levels of government from both Zimbabwe and South Africa, but would not divulge names. These trucks, run by politically-connected people, are not stopped or searched on the Zimbabwean side of the border. The cigarette brands that are most frequently smuggled by tobacco trafficking and bootlegging syndicates are Remington Gold and Pacific Blue, both manufactured by Savanna Tobacco, now Pacific Cigarette Company, a Zimbabwean-based firm run by Adam Molai, the late former Zimbabwean president Robert Mugabe’s nephew-in-law. The company’s cigarettes brands include Pacific, Pegasus, Branson and Remington Gold. Pacific is being put under business rescue — a procedure aimed at facilitating the rehabilitation of a financially distressed company — due to political interference under the guise of tax arrears, Zimbabwean intelligence and tax authorities say. Another company that has been entangled in multiple reports for cigarette smuggling is Gold Leaf Tobacco Zimbabwe, which is owned by the Rudland family. It is owned by Simon Rudland, a renowned Zimbabwean business tycoon with an interest in logistics, finance, and agriculture. He is the co-owner of Gold Leaf Tobacco Corporation, a multi-national manufacturer and distributor of the Rudland & George RG cigarette brand. In 2022, the South African Revenue Service accused Rudland’s company of selling illicit cigarettes and avoiding taxes. The company was also named in the smuggling of gold by Al Jazeera Investigative Unit in a documentary titled Gold Mafia. In 2019, two men attempted to assassinate Rudland over cigarette deals and rivalries, narrowly surviving death. Rudland was shot while in his car, but the culprits were never caught. Last year in August, Sars took charge of bank accounts, premises and all other assets owned by cigarette manufacturer Gold Leaf Tobacco Corporation and of its directors Rudland and Ebrahim Adamjee. This, after Sars was granted an ex parte preservation order in the High Court in Pretoria in which a curator was appointed to look after the affairs of the company, Rudland and Adamjee. Sars approached the court in secret and accused the company, Rudland and Adamjee of “fraudulent, intentional tax evasion” and being “obstructive”. Based on what seems to be a multiyear probe, ace investigators said the accused did not declare more than R2.5 billion in income from illicit cigarettes for the years 2017/18, nor VAT of more than R356 million from September 2016 to July 2017. To hide the crimes, the plunder network allegedly managed a cross-border money-laundering racket that leaned on bribed Sasfin banking officials to sneak more than R3 billion in undeclared money mainly to Dubai, camouflage their footprints by deleting banking transactions, expedite payments, craft fake documentation and delete forex movement reports to the Reserve Bank. Simon, brother to Hamish Rudland, has denied any involvement in the sale of illicit cigarettes, in gold or other forms of smuggling and in sanctions busting. Cross-border transporters, known as Omalayitsha (the couriers) in Ndebele language, whose job is to transport groceries and property sent by Zimbabweans working in South Africa, are also used as cigarette smugglers when they return to South Africa. Another source based in Beitbridge and has in the past investigated serious cases of general smuggling explained the process of how cigarettes and other goods are smuggled at the border saying authorities are also involved. “The (Limpopo) River boundary between Zimbabwe and South Africa runs for over 200km stretch. The smugglers use border flanks and not the border post itself. Security bases are few, so these guys use the several crossing points and at times pay the security guys who deployed several crossing points and at times pay the security guys who are deployed without Transport and Subsistence allowances (T&S),” the source said. In most cases, Zimbabwean soldiers and police are posted to the border post without travel and subsistence, exposing them to corruption. A 2020 parliamentary portfolio committee report on Defence, Home Affairs and Security Services confirmed that the Zimbabwe-South African border is porous. “There was a general outcry regarding smuggling of goods and precious minerals, human trafficking, delays in processing of travelling documents, rampant corruption and illegal exit and entry into the country, at various border posts. This has resulted in government losing taxes and duties accordingly, hence, impacting negatively on economic development,” the report says. “Various stakeholders, including civil society and the media, testified that there was need for government to act immediately and address these trepidations.” The parliamentary report said: “In relation to illegal entry and exit, the committee established that stretches for up to 255km, border policing is being done in areas covering less than 50kms and the remaining area becomes easily accessible for illegal crossing. “Statistics submitted to the committee showed that a total of 16 187 have been arrested for illegal crossing from January to June 2019. This is a significant number and it can be quantified that on average 1 350 people are being arrested on monthly basis.” With reference to Beitbridge Border Post, it said: “At Beitbridge border post, the committee appreciate the government’s efforts for the project underway in upgrading the border as this will go a long way in alleviating challenges emanating from lack of supportive infrastructure. “The committee noted that the Zimbabwe Republic Police was currently relying on employing physical searching methods at all the border posts. However, it was indicated to the committee that these kinds of searches are not efficient enough to detect smuggled items. “In connection with the above, the police did not have hand luggage scanners to detect smuggling of goods concealed in hand luggage or in any part of the body. In this regard goods such as drugs and gold have a tendency of being smuggled in that fashion. It was also established that the department did not have surveillance equipment such as drones and helicopters for aerial surveillance to prevent and detect smuggling cases. The committee further established that at Beitbridge and Forbes border posts the scanners were not functional.” The report said the parliamentary committee learnt that there were no vehicles for border patrol operations and government security agencies were relying on private hire to chase criminals. At Beitbridge Border Post, the committee was informed that currently nine motorbikes were being used to patrol the whole 200km stretch for anti-smuggling along the Limpopo River from Tshikwalakwala on the east up to Shashe River, which flows into the Limpopo where Zimbabwe meets with South Africa and Botswana. The stretch from Beitbridge to Sango Border on the southern end of Gonarezhou National Park is nearly 200km and Beitbridge to Tuli is around 185km. The same challenge was also reported at Forbes Border Post where it was reported that the stretch from Forbes to Nyamapanda Border Post is nearly 530km in the north eastern part of the country. “The committee was also informed that police had forward bases situated at strategic points which are 10km apart along the Limpopo River in case of Beitbridge and along Binya Road in case of Forbes Border Post. The aim is to thwart rampant smuggling and illegal crossing activities, some of which involve stolen vehicles and other things (tobacco for instance). Supervision for those on deployment was not being done since the motor cycles are old and constantly off the road.” Anti-corruption activist and Tax Justice South Africa’s Yusuf Abramjee said despite the heavy presence of state security agents from both Zimbabwe and South Africa, smuggling of cigarettes remains rampant, an indication of “well-organised” criminality. “South Africa now has the world’s largest and most sophisticated cigarette smuggling network, with illicit cigarettes accounting for approximately 70% of the total cigarette sales nationwide,” Abramjee, who frequently tweets on cigarettes smuggling, told ZIJN. “While authorities have upped their efforts to combat the smuggling of cigarettes from Zimbabwe into South Africa the reality is that millions of illicit cigarettes continue to make their way into the country. “These smugglers have allies at the highest level, who allow illicit cigarettes to flood our border in exchange for massive profits.” Abramjee said the smuggling of illicit cigarettes into South Africa was impacting negatively on the failure to deliver by the South African government as billions in potential revenue are lost in the criminal web. “All South Africans are impacted by the illicit cigarette trade. It steals over R50 million from taxpayers and the exchequer on a daily basis. This impacts the government’s ability to invest in vitally needed services such as healthcare, energy, housing and basic services,” he said. “It also poses a national security risk, financing organised crime and gangland violence.” Investigations corroborated by the anti-corruption hawks in South Africa show that approximately three out of every four cigarettes sold in South Africa are illicit with an estimated cost of over R20 billion to the government every year. On whether there is a will from the authorities to deal with cigarette smuggling, Abramjee said: “South Africa’s primary agencies in the fight against illicit, the National Prosecuting Authority and Revenue Service, were hollowed out during years of State Capture leaving them ill-equipped to tackle the sophisticated smuggling networks that have emerged. We now see that even when criminal proceedings are successfully issued by these agencies, they rarely result in a conviction. “New laws currently under consideration by the government also threaten to push South Africa even further under the control of kingpins in organised crime. The government is planning to remove all branding from cigarette packets in South Africa which will make cigarettes even easier to counterfeit. Consumers trying to purchase a legitimate product will find it impossible to distinguish between the authentic and the fake.” Tax Justice SA on Thursday confirmed a suspect has been arrested in Welkom for possession of illicit cigarettes found in a hidden compartment inside a truck. Commenting on the latest arrest, Tax Justice SA said: “It’s no wonder South Africa has been ranked as a global hotspot for organised crime by the Global Initiative, the only international, independent organisation with a mandate to formulate a global strategy to reduce the harms of organised crime and build resilience to it. Six months since the Al Jazeera Investigative Unit
NewsHawks News Page 7 Issue 151, 6 October 2023 RUVIMBO MUCHENJE FORMER National Social Security Authority (Nssa) boss Arthur Manase’s demand to acquire a third luxury car — a Land Rover Defender — as part of his exit package on top of a Mercedes-Benz E55 AMG and a Mitsubishi Triton double cab he already got before quitting recently has hit a brick wall. Manase resigned on 1 August facing over 30 charges of misconduct, incompetence and mismanagement. Prior to that, he had been on leave of absence for a year to facilitate official investigations into many corruption issues at Nssa. Through his lawyers, Manase had written to Nssa expressing desire to buy his service vehicle — a Land Rover Discovery — (reg. No. AFK2044) bought in December 2022. In his letter, he claims he has a right to acquire the car derived from “the Nssa policy on disposal of service vehicles upon termination of employment”. Nssa lawyers Kantor & Immerman Legal Practitioners, a leading Harare commercial law firm, in its legal advice said it is common cause the car belongs to the pension fund and it is part of its assets. It said Manase has asserted his alleged right to purchase the vehicle from its rightful owner — Nssa. The lawyers said it is trite any right vesting in an employee must be contained in a legal instrument for it to be enjoyed or enforced as a legal right, and interests do not exist in a vacuum. Manase’s right to buy the car must be contained in his contract or Nssa internal policy. In this case, it is not part of his employment contract. The lawyers said Manase is also not entitled to the car in terms of Nssa resolutions that only apply in a situation where the pension opts not to renew a fixed term contract of employment. Since Manase voluntarily resigned on 1 August before his contract expired, he does not qualify to buy the car. “In the light of the above, we are of the view that there is nothing in the Nssa policies which accords the employee (Manase) the right to purchase the vehicle,” Kantor & Immerman said. The lawyers said Nssa has discretion on the matter, but Manase has no right to retain the vehicle unless the pension fund makes a decision in his favour. This comes as Manase is entangled in a luxury vehicles scandal amid accusations that he unlawfully bought six cars using the statutory pension fund’s money for his own use within a period of two years. He is also accused of unlawfully implementing a policy of availing condition-of-service vehicles — in addition to motor vehicle loans — in violation of the 20 March 2018 cabinet-approved circular on conditions of service vehicles. Manase wants Nssa to dispose of a third luxury car — a Land Rover Defender – to him on top of a Mercedes-Benz E55 AMG and a Mitsubishi Triton double cab he already got before quitting recently. This will be his third top-of-the-range car from Nssa in two years. Executives who work at scandal-ridden Nssa mostly treat it as a self-enrichment organisation. The three cars Manase has and wants are valued at more than US$416 000: Mercedes-Benz US$178 000, Land Rover Defender US$175 000 and Triton US$63 000. Manase, appointed in January 2021, resigned on 1 August. This was more than a year after he was put on leave of absence since July last year to facilitate investigations into a series of irregularities, mismanagement and corrupt activities. He was suspended without salary and benefits on 28 July, three days before he quit facing over 30 charges of misconduct, malpractices and maladministration. Nssa wanted to haul him before a disciplinary committee over corruption issues, some of them involving cars. Documents seen by The NewsHawks show Manase is accused of implementing an unauthorised condition of service motor vehicles framework and unlawful acquisition of six cars. One of the charges against Manase says: “You unlawfully implemented a policy of availing condition-of-service vehicles, in addition to motor vehicle loans, in violation of the 20 March 2018 cabinet-approved circular on conditions of service vehicles for independent commissions, state enterprises and parastatals. You therefore wilfully defied and/or refused to implement lawful directives and caused financial loss to the authority as a result of payment of unapproved vehicle loans. “Your aforementioned conduct was also in breach of the express and/or implied terms of your contract of employment.” Manase is also accused of unlawfully acquiring six cars. “You unlawfully acquired and/or funded acquisition of six vehicles using the authority’s resources for your own use within a period of two years contrary to provisions of the circular on conditions of service vehicles as detailed below: “In December 2022, you bought a Land Rover Discovery vehicle as your condition of service vehicle as acting general manager, although your contract of employment did not provide for condition of service vehicle for the acting position and when you had already become the substantive General Manager. “In June 2021, you accessed a motor vehicle loan and acquired a Mitsubishi Triton from Zimoco for US$63 000. “On 29 March 2022, you acquired a Mercedes-Benz E55 AMG from Zimoco for US$178 000 as your condition of service vehicle and the authority paid the amount in full. “On 1 April 2022, you acquired a Land Rover Defender worth US$175 000 as a condition of service vehicle for the General Manager, and a deposit of US$87 500 was paid by the authority. You also had at your disposal a Nssa Isuzu Double Cab vehicle. “In June 2022, you acquired the Mercedes-Benz referred to above through a motor vehicle loan before you had completed paying the motor vehicle loan granted in June 2021. "Additionally, your acquisition of that Mercedes-Benz motor vehicle, which at that time belonged to Nssa, as a condition of service motor vehicle, constituted a disposal of a Nssa asset and yet section of the Public Procurement and Disposal of Public Assets Act was flouted, and you had attempted to acquire a Land Cruiser 300 Series through the sale of OK Zimbabwe shares.” The documents add: “Your conduct aforesaid violated procurement regulations and defied lawful directives on conditions of service vehicles framework and abused the authority’s financial resources to the detriment of pensioners. Your aforementioned conduct was a breach of the express and/or implied terms of your contract of employment.” Despite all this, Manase has told Nssa he wants the Land Rover (reg. No. AFK2044), purchased in December 2020, so that he can walk away with three cars in two years. The Land Rover Discovery, which he wants to purchase, is a Nssa pool vehicle. Already, he has the Triton double cab bought in August 2021. He paid off the loan he got to buy the car. Then there is the Mercedes-Benz purchased in March 2022 as a condition-of-service vehicle, which he later converted into a loan. Disposal of vehicles at Nssa to an employee or former employees is governed by the organisation’s condition-of-service vehicle policy and the Chief Secretary to the President and Cabinet’s circular. This is also consistent with the Corporate Governance Unit circular of number SEP/37/23 of 2023. The policy, which is clear as to whom it applies and relates to on condition-of-service vehicles only, was last amended on 1 March 2022. This excludes any other class or category of vehicles like pool cars. The policy takes into account a number of scenarios about the employee and the vehicle like age, usage of the car, condition and whether new or old. An employee, whether resigned, retrenched, promoted, period of service and period using the vehicle. The policy also covers situations where employees shall not be entitled to purchase. As a result of the car scandal, Nssa assistant accountant Erasmus Mavondo was arrested last year and appeared in court on allegations of corruptly awarding Manase a personal loan to buy a car using an undervalued exchange rate. Mavondo allegedly helped Manase to buy the Mercedes-Benz for ZW$25 351 418.60 instead of ZW$60 251 593.80, which was equivalent to US$178 000. The money was purportedly given to Manase as a personal loan to regularise a problematic company-cars deal in which he ended up with two condition-of-service vehicles instead of one. In so doing, Mavondo allegedly prejudiced Nssa of ZW$34 900 175 after converting the US$178 000 using a 31 March 2022 rate of US$1:ZW$142 instead of US$1:ZW$138 as of 21 June 2022. Manase’s demand for third luxury car hits brick wall Former Nssa boss Arthur Manase
Page 8 News NewsHawks Issue 151, 6 October 2023 OWEN GAGARE HARARE lawyer and businessman Frederick Nyamande has taken President Emmerson Mnangagwa to court following the promulgation of the controversial Mutapa Investment Fund which he argues allows the head of state to loot public resources. Mnangagwa is jointly sued with the Parliament of Zimbabwe and Mutapa Investment Fund, an entity which was created by the Presidential Powers (Temporary Measures) (Investment Laws Amendment) Regulations also known as Statutory Instrument 156 of 2023. The SI is an amendment to the Sovereign Wealth Fund Zimbabwe Act (Chapter 22:20). The Attorney-General and Justice minister Ziyambi Ziyambi were also cited as respondents in the urgent chamber application. Mutapa Investment Fund is a pool of resources, that is public equities, commodity royalties and allocations from the government that will be invested in future. The history of the fund dates back to 2014 and has clear objectives such as to invest for future generations and support the country's development goals, among other objectives. On 19 September, the President controversially promulgated the SI which changed the name of the sovereign wealth fund to Mutapa Investment Fund, sparking uproar. Critics complained that the renaming was never explained yet it gives Mnangagwa unfettered powers to appoint the chief executive officer and all eight members of the Mutapa Investment Fund board. He is not bound by any recommendations from anyone. Nyamande prayed that his application be heard urgently since the subject is of national interest. He filed an urgent constitutional application for a declaration that sections 2(2) and 5 of the Presidential Powers (Temporary Measures) Act (Chapter 10:20) ("the Act") be declared invalid and unconstitutional for being inconsistent with sections 2(1) and section 134 of the constitution of Zimbabwe. His application challenges all the provisions of the Act which allow for the passage of different kinds of Presidential Powers (Temporary Measure) Regulations and which permit such regulations to override laws enacted by Parliament. It is also his contention that the SI was promulgated to enable Mnangagwa to loot state resources. "I submit that I have legal standing to bring this application because I bring it on my own right and in the public interest. "The Regulations which are made in terms of this legislation always affect the public in Zimbabwe because they allow the First Respondent (Mnangagwa) to rule by decree and allow him to enact his own 'Enabling Act' in the context of this matter the First Respondent has enacted the Presidential Powers (Temporary Measures) (Investment Laws Amendment) Regulations, 2023 (Statutory Instrument 156 of 2023) which create the Third Respondent (Mutapa Investment Fund) an entity lacking in accountability but holding most of the valuable national commercial assets and interests," he said. Nyamande said it is important that relief be granted in this matter immediately so that all the national assets in the form of the total shareholding in the parastatals listed in section 19 of the Presidential Powers (Temporary Measures) (Investment Laws Amendment) Regulations, 2023 (Statutory Instrument 156 of 2023) are not handed over to an entity which was not created by Parliament as the constitutional holder of state assets and finances. "It is important that the Court give its immediate pronouncement on this critical issue before any further unlawful acts are perpetuated. "It is further critical that the court must intervene in these proceedings on urgent basis as there is clear violation of the procurement legislation of the nation which is even legislated for in the supreme law of the land,” he said. He said if the court does not intervene on urgent basis, with respect, it will have condoned an illegality contrary to the laws. In his founding affidavit, Nyamande said the effect of regulations made in terms of section 2 shall, to the extent of any inconsistency, prevail over any other law to the contrary, apart from Regulations that have been made and are in force in terms of the Emergency Powers Act [Chapter 11:04]. "I respectfully submit that this provision of the Act is, in its entirety, contrary to section 134(a), (b), (c) and (d) of the Constitution of Zimbabwe which provides that Parliament may, in an Act of Parliament, delegate power to make statutory instruments within the scope of and for the purposes laid out in that Act, but Parliament's primary law-making power must not be Delegated,” he argued. He said statutory instruments must not infringe or limit any of the rights and freedoms set out in the Declaration of Rights. He also said statutory instruments must be consistent with the Act of Parliament under which they are made. According to Nyamande, the Act must specify the limits of the power, the nature and scope of the statutory instrument that may be made, and the principles and standards applicable to the statutory instrument. "I respectfully submit that section 2(2) of the Act is unconstitutional in the following respects . . . it delegates to the President the primary law-making powers of Parliament to enact, amend or repeal principal legislation, that is, Acts of Parliament — other than matters relating to the Consolidated Revenue Fund and the Constitution,” he said. "This is done through Regulations — envisaged in section 2(1) of the Act which are made with the powers provided by section 2(2) of the Act meaning that they can provide for any matter which can competently be provided for in an Act of Parliament — that is, new Act of Parliament, amendment to an Act of Parliament and repeal of an Act of Parliament. "This is a contravention of, and it is inconsistent with, section 134(a) of the Constitution of Zimbabwe. He added: "It delegates to the President the power and competency to provide for any matter which can lawfully be provided for in an Act of Parliament such that the President can, and indeed has in the past, enact Regulations (statutory instruments) which infringe upon and/or limit the rights and freedoms set-out in the Declaration of Rights under Part 2 of the Constitution of Zimbabwe." Apart from this, according to the lawyer, there are also regulations such as the Presidential Powers (Temporary Measures) (Amendment of Electoral Act) (No. 2) Regulations, 2008 (SI 43/2008) which limit the right to vote and other political rights in section 67 of the constitution of Zimbabwe. "This is a contravention of, and it is inconsistent with, section 134(b) of the Constitution of Zimbabwe. "It delegates to the President the power and competence to make Regulations on such a wide array of matters such that it is not even possible to tell if such Regulations can be consistent with the Act itself. "The President is granted the power to make any legislation whatsoever, (with the exception of money bills and Constitutional amendments). "The Regulations can thus never be consistent with specific matters in the Act. This is a contravention of, and it is inconsistent with, section 134(c) of the Constitution of Zimbabwe. "It delegates to the President the competence to make Regulations on matters which are far too wide in scope under powers which are far too great for it to ever be consistent with section 134(d) of the Constitution of Zimbabwe." Nyamande said section 5 of the Act is unconstitutional as it permits the regulations to become a form of super legislation which can override not only another Act of Parliament but also possibly a provision of the constitution as long as the regulations do not purport to add to, amend or repeal the constitution. "This is clearly impermissible even in an Act of Parliament . . ." he said. "The violations which I allege in this matter are separation of powers violations and not violation of rights in the Bill of Rights. Thus, there can be no limitations enquiry similar to that provided for in section 86 of the Constitution of Zimbabwe regarding whether the provisions of section 2 of the Act can be saved from a declaration of invalidity and a subsequent severance order. "Thus, upon a mere finding that sections 2 and 5 of the Act are inconsistent with the Constitution of Zimbabwe they must be struck down." "Section 3 on the giving of Notice of Intention to Make Regulations is unhelpful as it still does not turn the President into a legislator or the Legislature. "The mere giving of notice and receiving of representations does not entitle the President to exercise primary law-making functions of Parliament on the broad spectrum already alluded to. "Further the current President and the previous President have not bothered to utilise this section on any occasion I can recall. "In fact, the last 20 sets of Regulations have been gazetted without notice being given of the intention to gazette them." Nyamande complained that the laying of the regulations before Parliament under section 4 of the Act is without consequence. He submitted that Zimbabwean laws allow such an instrument to undergo scrutiny by the Parliamentary Legal Committee. The lawyer said powers conferred upon the President by sections 2 and 5 of the Act are unconstitutional and undesirable because they permit the President to rule by decree. He said they violate the principle of separation of powers as stipulated by the constitution in section 3 which enunciates the republic's founding values. "These impugned provisions were enacted in 1985 when the Constitutional structure of Zimbabwe was similar to that of the British system in which all members of the Executive (including the Head of the Executive the Prime Minister) were part of and directly accountable to Parliament. "This changed in 1987 and it was changed even more in 2013 with the coming in of the current Constitution. What was permissible in a commonwealth form of Government is now completely prohibited in the current constitutional dispensation. "The Regulations made in terms of these provisions of the Act are an easy tool for sudden reversal of policies which are enacted into legislation by Parliament," he said. Nyamande also said the regulations have done more harm than good to whatever situation they were intended to address. He said this is a likely result of principal lawmaking powers being exercised by an individual when the wisdom of constitutionalism dictates that they should be exercised by a large body after thorough and public deliberation. Nyamande said the repealing of the Sovereign Wealth Fund Act brazenly usurps the primary law-making role of Parliament. He said it is so brazen that no sane Zimbabwean can debate this, including the President if properly advised by the newly appointed Attorney-General and the minister of Justice. "The regulations further amend section 3 of the Public Procurement and Disposal Assets Act Chapter 22:22. "This is impressible and shows that the President gazetted law specifically designed to enable looting. "Procurement must never be done behind closed doors, it must be done as transparently as possible and in as accountable a manner as possible. "I respectfully submit that I have made a case for the relief which I seek. Wherefore I pray for an order in terms of the draft," he said. The matter is yet to be set down for hearing. Lawyer files ConCourt challenge against Mutapa Investment Fund Harare lawyer and businessman Frederick Nyamande
NewsHawks News Page 9 Issue 151, 6 October 2023 BERNARD MPOFU PRESIDENT Emmerson Mnangagwa’s controversial Mutapa Investment Fund (MIF) — formerly the Sovereign Wealth Fund (SWF) — is a calculated grand heist scheme designed to help the politically connected to snatch up valuable state assets at dirt-cheap prices and flog them at huge profit, Russian oligarch-style, a former cabinet minister has said. Tendai Biti, former Finance minister, says the MIF is unconstitutional, illegal and opaque, as well as murky and muddy to ensure that it is not transparent and accountable to facilitate looting on an industrial scale. “The Mutapa Investment Fund is conceptually flawed; it is like an asset management behemoth created to house state enterprises and related assets illegally, make them fungible and easily transferrable. It’s not a typical Sovereign Wealth Fund as we know it. It’s not like Norway’s US$1.4 trillion Sovereign Wealth, the biggest in the world, for sure,” Biti told The NewsHawks in an interview. “A normal sovereign wealth is a state-owned investment fund comprising of money generated by government surplus reserves or its resources to create wealth for current and future generations. It’s a pool of assets owned and managed directly or indirectly by governments and invested in stocks, bonds, real estate, precious metals, or in alternative investments such as equity funds or hedge funds to achieve national objectives. “For instance, before this Mutapa scam, we had created a proper sovereign wealth fund in 2014 because Zimbabwe has world-class deposits of gold, platinum, diamonds, chrome and now lithium. Yet these are non-renewable natural resources so we need to exploit them for current and future generations. Collect royalties and invest them in a sovereign wealth fund.” Biti says the changing of SWF to MIF has created a conduit for industrial-scale looting. “Mnangagwa’s opaque structure is a scheme for a grand heist. We will witness unprecedented grand scale looting and industrial-scale corruption under this Mutapa Fund. The structure is flawed conceptually. It is also unconstitutional. It is illegal. It was established through a statutory instrument, a presidential decree, violating the constitution, laws and principles of separation of powers,” he said. “In terms of section 134 of the constitution, Parliament may, in an Act of Parliament, delegate power to make statutory instruments within the scope of and for the purposes laid out in that Act, but its primary law-making power must not be delegated; statutory instruments must not infringe or limit any of the rights and freedoms set out in the Declaration of Rights; statutory instruments must be consistent with the Act of Parliament under which they are made; the Act must specify the limits of the power, the nature and scope of the statutory instrument that may be made, and the principles and standards applicable to the statutory instrument; statutory instruments do not have the force of law unless they have been published in the gazette; and statutory instruments must be laid before the National Assembly in accordance with its Standing Orders and submitted to the Parliamentary Legal Committee for scrutiny. “In this case, a statutory instrument or presidential decree was used to transfer 20 state enterprises into MIF. The question is: Does this meet the legal test to justify the action, for instance was it an emergency, is it in the national interest or is it consistent with the legal framework or laws under which it is made? “The changing of SWF to MIF was not an emergency, it could wait; it wasn’t in the national interest to bundle together state assets for an unexplained purpose and it undermined various Acts that govern some of those state enterprises. Basically, Mnangagwa, as head of the executive, sought to replace Parliament, which is another pillar of the state together with the judiciary. That is unconstitutional and unlawful. “The waiving of state procurement laws and process on MIF is also illegal. It violates the constitution, the laws and international best practices.” Biti said the MIF is a muddy quagmire, in which only catfish — the dishonest and corrupt — can survive and thrive. “Bringing into one pool 20 parastatals which are established differently, National Railways of Zimbabwe, Zesa, TelOne, NetOne, POSB and Air Zimbabwe, for example, creates a messy situation. The reason they did that is not to consolidate ownership, as government already owns the assets, but to ensure fungibility so that they flog them for personal enrichment and corrupt purposes. “Given that Mnangagwa basically controls everything under one roof, state assets will now be privatised through the backdoor. There are many laws which apply to privatisation and investment that have been overridden by the President in the process over and above the Acts of Parliament establishing some of the parastatals, for instance the Privatisation Act, Zimbabwe Investment and Development Act and Zimbabwe Investment Authority Act. “Mnangagwa is now substituting Parliament for himself, undermining the sovereign institution, the constitution and various laws. This is about capture of state enterprises and plunder.” Fadzayi Mahere, a legislator of the main opposition CCC and lawyer, said:“The most concerning feature of the recent purported amendment to the Sovereign Wealth Fund of Zimbabwe Act by Mnangagwa is that it is unconstitutional in a number of respects. “As a starting point, the amendment was introduced by way of a statutory instrument, which violates section 134 of the constitution. The said section prohibits the enactment, amendment or repeal of legislation by way of a statutory instrument. Only Parliament can make, change or remove laws. “It is no answer to this charge that the statutory instrument was gazetted purportedly under the Presidential Powers (Temporary Measures) Act — this statute itself offends section 134 of the constitution. “In the event of a conflict, the constitution is supreme. It follows that Mnangagwa’s statutory instrument that changed the Sovereign Wealth Fund of Zimbabwe was invalid, ultra vires the constitution and thus illegal as a matter of a law. It additionally breaches the section 68 obligation of all administrative authorities to act lawfully, reasonably and fairly.” On the 19 September, Mnangagwa controversially promulgated Statutory Instrument 156 of 2023 (SI 156/2023) which changed the name of the Sovereign Wealth Fund of Zimbabwe to the Mutapa Investment Fund. No official reasons have been given for the renaming of the fund. State enterprises or parastatals now commandeered to be under the dodgy MIF include Defold Mine, ZUPCO, Kuvimba, Silo Investments (Grain Marketing Board commercial arm), the National Oil Company of Zimbabwe, the Cold Storage Commission, Petrotrade, POSB, Netone Cellular, the National Railways of Zimbabwe Holdings and NRZ Ltd, TelOne, ARDA Seeds, Zimbabwe Power Company, Powertel, Allied Timbers, Telecel Zimbabwe, Air Zimbabwe, Industrial Development Corporation, Cottco, AFC Limited and Hwange Colliery. To make matters worse, Mnangagwa has the unfettered power to add and remove companies to the list as and when he pleases. The effect of putting all the companies under one roof is to create a behemoth whose operations and transactions are not subject to public procurement laws, parliamentary oversight or disclosure to the public. This undermines constitutional principles of good governance, transparency and accountability. MIF fund managers and employees are “sworn to secrecy”, further making it opaque and vulnerable to corruption, while blocking access to information. The fund will be able to transfer and externalise foreign currency without foreign exchange controls. The process has hallmarks of how Russian state assets were sold for a song or brazenly stolen during its transition from socialism to capitalism. Russian oligarchs made their money by snatching up valuable state assets at dirt-cheap prices. They used various methods to grab the properties. Sometimes oligarchs stripped their acquisitions of assets or acquired natural resources and then sold them off and shipped the money abroad. Once Boris Yeltsin became President of Russia in July 1991, the oligarchs emerged as well-connected entrepreneurs who started from nearly nothing and became rich through participation in the market via connections to the corrupt, but elected, government of Russia during the state's transition to a market-based economy. When the Soviet Union collapsed in 1991 after decades of communist authoritarian rule, it was a historic and monumental global event full of hope and new possibilities. The Cold War ended, and political, economic and military alliances that had shaped the world for nearly a half-century were reconfigured practically overnight. The Soviet Union's fiercest enemy, the United States, hailed the fall as a victory for democracy and evidence of capitalism's superiority over socialism. For the majority of Russians, the transition to a market system was painful, chaotic and anything but democratic. Amid the chaos of the country's reorganisation, however, a few shrewd businessmen rose to the top. In just a few short years, Russia's crown jewels became the private possessions — which is what Mnangagwa is trying to do — of a small group of corporate raiders who have now come to be known as the Russian oligarchs. Mutapa Investment Fund project: Calculated multi-billion grand heist Air Zimbabwe among state enterprises to be commandeered under the MIF.
Page 10 News NewsHawks Issue 151, 6 October 2023 BRENNA MATENDERE FEARS abound that President Emmerson Mnangagwa's self-serving Mutapa Investment Fund project has hallmarks of how Russian state assets were sold for a song or brazenly stolen during its transition from socialism to capitalism. Russian oligarchs made their money by snatching up valuable state assets at dirt-cheap prices. They used various methods to grab the properties. Sometimes oligarchs stripped their acquisitions of assets or acquired natural resources and then sold them off and shipped the money abroad. Mnangagwa on 19 September gazetted Statutory Instrument (SI) 156 of 2023, which changed the name of the Sovereign Wealth Fund of Zimbabwe to Mutapa Investment Fund and brought 20 state-owned entities under one board. According to the SI, entities under the Mutapa Investment Fund will be exempt from the Public Procurement and Disposal of Public Assets Act, which compels public enterprises to go through the Procurement Regulatory Authority of Zimbabwe to pay for goods and services. The affected companies are Defold Mine, Zupco, Kuvimba Mining House, Silo Investments, National Oil Company of Zimbabwe, Cold Storage Commission Limited, PetroTrade, POSB Bank, NetOne, National Railways of Zimbabwe, TelOne, Arda Seeds, Zimbabwe Power Company, PowerTel Communications, Allied Timbers, Telecel, Air Zimbabwe, Industrial Development Corporation of Zimbabwe, Cottco and Hwange Colliery Company. The placement of these entities under the Mutapa Investment Fund has stoked fears that the board of the fund will covertly sell assets of the parastatals to politically connected individuals with links to the ruling Zanu PF party. In an interview with The NewsHawks, prominent economic analyst Professor Gift Mugano said: “My fears are centred around the lack of transparency and accountability. The fact that the fund is exempt from public scrutiny worries me a lot. The reason why we want public scrutiny is that we want to make sure that there is no wastefulness in terms of how procurement is done. So, for me that is the first thing I am worried about. It worries me a lot because we need transparency. Number two, I am not a lawyer, but I can follow that in things like these, you would like the Parliament to be involved, but when there is a presidential decree in it, again it creates challenges in terms of economic governance, because Parliament has a legislative role and it looks like its mandate has been taken away.” Prof Mugano added that the importance of subjecting parastatals and transactions involving public entities to parliamentary scrutiny is to provide much-needed oversight. “If it is done by the President, then they would have missed an opportunity to get views from members of the public in particular. I am not saying any insinuation that there are no legal advisors of the President, but I think the more the better and we need to follow processes,” he said. “Finally, I would like to see our sovereign wealth fund focusing on our natural resources, minerals in particular. It would then help us to benefit from the minerals in times of surpluses where prices are very good and we are making good money from our minerals. But when we see 20 state-owned enterprises being put under the sovereign wealth fund, I have a bit of a challenge because, traditionally, the wealth works well when it is focusing on minerals because those are infinite.” Prof Mugano also questioned why the government did not leave parastatals to stand alone and then allow reforms and restructuring of the enterprises as legal entities and then come up with an ideal model of each depending on its status. He said some could have been allowed some to undergo privatisation, others commercialisation and others could go for a blend of public and private ownership. “There are quite useful models to drive success and improve performance of state-owned enterprises. My fear is that if they are lumped under a fund, which is owned by the government, it is still the same government putting them under one roof, but then impeding any possibility of external players to work on them as individual entities,” Prof Mugano said. Former Finance minister Tendai Biti said the Mutapa Investment Fund is illegal. “The instrument does not meet the test of the law and must be rejected as it is illegal. This law was unnecessary,” Biti said during a radio show on Wednesday evening this week. “They are transferring the public shares into a private vehicle. The government already owns the shares; I think the issue is to sell shares as quickly as possible without public scrutiny.” Biti added that the law is very clear that any procurement in Zimbabwe must be subject to public accountability and transparency. “Under section 340 of the constitution, neither the President nor ministry of Finance secretary George Guvamatanga could seek not to exclude the operations of Public Procurement Act from any transaction,” he said. But the Finance ministry’s permanent secretary Guvamatanga told a meeting of businesspeople in Victoria Falls on Monday that the entities under the Mutapa Investment Fund are not covered by the exemption. Guvamatanga said only Mutapa Investment Fund, as a standalone investor holding government shares in each of the firms, has that privilege. The parastatals in which Mutapa has shares will remain separate legal entities that must still go through procurement regulations. “To be clear, in terms of the law, as contained in the general notice published last Friday, the exemption applies only to the fund, and not to any other entities listed on the schedule. The fund merely owns shares in those entities, but (the SI) does not change their legal character or separate legal entities distinct from the fund,” Guvamatanga said, adding: “All this noise that we’re seeing, that every entity has been exempted, is not correct.” Guvamatanga says the government has exempted the Mutapa Investment Fund because the fund will need to make quick decisions as an investment fund. “Because the fund, by its nature, will operate and compete in competitive markets, in both the international and competitive markets, competing against private equity funds and such types of businesses, the fund will need to be quick, efficient and cost-effective,” Guvamatanga said. “In some instances, by its nature, it will be involved in market-sensitive transactions which, as investment brokers will know, will require such transactions to be handled differently. As such, it was important to place it at par with its peers.” But this has failed to calm the nerves, stoking suspicions that the politically connected will exploit the Fund in circumstances similar to what obtained in Russia during the rule of Boris Yeltsin who became president of the country in July 1991. During this period the oligarchs emerged as well-connected entrepreneurs who started from nearly nothing and became filthy rich through purchasing expensive public assets for a song using their connections to corrupt government officials. This was during Russia’s transition to a market-based economy. In post-Soviet Russia, the corrupt system saw the rise to international prominence of Russian billionaires who now own expensive superyachts such as Roman Abramovich, Alisher Usmanov, Boris Berezovsky and Oleg Deripaska. They were the opportunists who took advantage of the messy and corrupt market that emerged in Russia after the dissolution of the Soviet Union in 1991. In the aftermath of the collapse of the Soviet Union, the newly formed Russian government set about selling off Soviet assets to the public via a voucher privatisation programme. The Soviet state assets which were sold to the oligarchs for a song included hugely valuable industrial and energy machinery which they in turn sold abroad and stashed their earnings in foreign bank accounts rather than investing it back in the Russian economy. The first generation of Russian oligarchs were mostly hustlers who had made their money on the black market or by seizing entrepreneurial opportunities in the late 1980s, when the Soviet Union began to loosen its stringent restrictions on private business practices. Scholar Harry Atkins in a study report titled How Did Russia’s Oligarchs Get Rich from the Fall of the Soviet Union? made clear explanations on the issue. Atkins wrote: “Arguably, in his haste to transition Russia into a market economy, Boris Yeltsin, the first President of the Russian Federation, helped to create a set of circumstances that perfectly suited the emergent oligarchy. Assisted by the influential economist Anatoly Chubais, who was tasked with the role of overseeing the privatisation project, Yeltsin’s approach to transforming the Russian economy – a process that no one expected to be painless – was to deliver capitalism via economic ‘shock therapy’. This entailed the sudden release of price and currency controls. Though this approach was widely advocated by neoliberal economists and the International Monetary Fund (IMF), many felt that the transition should be more gradual.” Fears abound that the same situation can happen in Zimbabwe under the Mutapa Investment Fund. Mutapa Fund likely to create oligarchs Former Finance minister Tendai Biti
NewsHawks News Page 11 Issue 151, 6 October 2023 RUVIMBO MUCHENJE ALIKO Dangote, Africa's richest black person, who founded and chairs Dangote Cement, the continent's largest cement producer, yesterday promised to keep the Zimbabwean business empire of the late Indian mogul Harpal Singh Randhawa, who had vast gold, diamonds and coal mining interests in the country, intact. Dangote told mourners in a virtual address that he will ensure Randhawa’s businesses do not stop running after his tragic death with his only son and child Amer Kabir Singh (22 years) on 29 September. Harpal was 60. The Randhawas died with four others onboard. The other victims were George Sibanda (51), Nikhil Mahadik Milind, Reginald Muchemwa and Pichumoney Viswanath (58). The Cessna plane, owned by the Zimbabwe Stock Exchnage-listed RioZim Ltd, crashed between 7:30am and 8am at Peter Farm in Zvemahande area, Mashava, on its way from Harare to Murowa Diamonds in Zvishavane. It had left Harare at 6:30am. This was not the first time a RioZim/Murowa small plane was involved in an accident. In February, a Piper 31 Navajo aircraft owned by RZM Murowa was force landed in a farm field about 16 kilometres away from Beatrice south of Harare. Dangote, who apparently came to Harare soon after the recent fatal crash, addressed mourners under a cloud of darkness and a sombre atmosphere at Raintree, Umwinsidale, Harare. The popular events venue is located at 1 Langhorne Lane, Umwinsidale. The memorial, which will also be done in London and New Delhi, had earlier been delayed as government conducted DNA tests and completed other identification procedures, while securing the site of the plane crash for investigations, which have not yet begun in earnest due to shortages of expertise. The Nigeria billionaire said he will do everything to keep Harpal’s business empire and legacy. Family members, relatives and friends spoke at the memorial. Harpal’s wife and sister also delivered sad addresses to a gathering which included his mother. Others who spoke included Zimnat Group chief executive Mustafa Sachak, local tycoon Shingi Mutasa and his wife Karen, attorney and international arbiter Muchadeyi Masunda and President Emmerson Mnangagwa’s son-in-law Gerald Mlotshwa who as present with his wife Farai. Other prominent people present included former Finance minister Herbert Murerwa, businessman Farai Rwodzi and media manager Raphael Khumalo, among many others. Randhawa was not a complete stranger to media business. He was once approached to buy into Alpha Media Holdings – publishers of NewsDay, Zimbabwe Independent and The Standard, as well as online broadcasting platform Heart & Soul, which is owned by media proprietor Trevor Ncube and Mlotshwa, but he rejected the offer due to the company’s debts and technical insolvency. Ncube was not at the memorial despite that it was a stone’s throw away from his Umwinsidale home, although he was supposed to address a social club which Randhawa attended before his death. Randhawa’s family members and relatives from London, United Kingdom, and India also participated. The late businessman, a Sikh, left the Indian capital New Delhi to work as a banker in London before venturing into business, with Zimbabwe being his destination. Sikhs are a religious minority in the north-western state of Punjab, where they form a majority. There are approximately 26 million Sikhs globally, of whom 23 million live in India where they are less than 2% of the 1.4 billion population. Randhawa, the founder of the US$4 billion private equity firm GEM Holdings, had a big stake in RioZim. After global mining giant Rio Tinto plc left Zimbabwe in 2015 after 60 years in Zimbabwe, RioZim acquired its 78% stake in Murowa Diamonds and its 50% holding in the Sengwa Colliery mine. Rio Tinto, the British-Australian multinational company that is the world's second-largest metals and mining corporation, also owned the Sengwa coal fields with RioZim on a 50-50 partnership. RioZim was incorporated on August 29, 1956 as Rio Tinto Southern Rhodesia Ltd. It was set up initially to develop and mine the Empress Nickel deposit in the Midlands and was the first mining operation to be set up outside Europe by Rio Tinto plc. RioZim separated from Rio Tinto plc in 2004 and became a wholly-owned Zimbabwean company which produces gold, coal, toll refines nickel, copper and now involved in diamonds. The company is listed on the Zimbabwe Stock Exchange. Dangote has the financial muscle to keep Randhawa’s businesses afloat. He owns 85% of publicly-traded Dangote Cement through a holding company. Dangote Cement has the capacity to produce 48.6 million metric tons annually and has operations in 10 countries across Africa. After many years in development, Dangote's fertiliser plant in Nigeria began operations in March 2022. Dangote Refinery has been under construction since 2016 and is expected to be one of the world's largest oil refineries once complete. Dangote, the world’s richest Black billionaire and founder of Dangote Group, has played a crucial role in shaping Africa’s business landscape and positioning Nigeria as one of the most industrialised countries on the continent. With diverse interests spanning various sectors in Nigeria and across Africa, Dangote’s expansive businesses under Dangote Group have made him the second largest employer, closely trailing behind the country’s federal government. His net worth stands at US$10.8 billion, making him Africa and the world’s richest Black billionaire. Presently, he holds direct or indirect ownership in 15 companies, showcasing the breadth and scale of his business empire. Africa’s population of wealthy individuals is on the rise, with 21 billionaires currently residing on the continent. South Africa’s Johann Rupert is the wealthiest man in Africa, having started his career with a banking apprenticeship in New York before returning home and eventually transitioning to the retail industry. Rupert is now the chairman of Swiss luxury goods company Compagnie Financiere Richemont, with a net worth of US$11.3 billion. Coming in at number two on the list is Aliko Dangote. He started as a small sugar trader but now has a net worth of US$10.8 billion. Other billionaires are the likes of South Africa’s Nicky Oppenheimer (3rd) and Patrice Motsepe (12th), the richest black person in South Africa, made their fortunes in the mining industry, which contributes almost 10% to sub-Saharan Africa’s GDP. Meanwhile, Naguib Sawiris (10th) and Zimbabwe’s Strive Masiyiwa (14th) have built remarkable telecoms empires. Billionaire Dangote to maintain Harpal’s Zim business operation The late tycoon Harpal Randhawa Nigerian billionaire Aliko Dangote
Page 12 News NewsHawks Issue 151, 6 October 2023 BRENNA MATENDERE SOUTH African President Cyril Ramaphosa continues to engage President Emmerson Mnangagwa over the political lockjam in Harare arising from a shambolic election, with the latest engagement having been a meeting with the embattled Zimbabwean leader on the border of the two countries on Thursday. Ramaphosa has so far met Mnangagwa three times inside a month — in Harare, New York and in Beitbridge — as he pushes his behindthe-scence engagement on Zimbabwe. He took the opportunity to again engage Mnangagwa in Musina on the sidelines of an event held to launch the Border Management Authority (BMA), an integrated border enforcement agency between Zimbabwe and South Africa meant to curb illegal goods smuggling, illicit drugs and cover up porous border concerns. It was the third time that Ramaphosa was using public diplomacy skills to engage Mnangagwa over the political crisis in Zimbabwe, in the aftermath of the discredited 23 August elections largely condemned by Sadc observer mission and other international blocs. Ramaphosa first engaged Mnangagwa at his low-key inauguration ceremony in Harare last month and also at the United Nations General Assembly (UNGA) in New York soon afterwards. At UNGA, Ramaphosa acknowledged to the media that Sadc election observer mission led former Zambian vice-president Nevers Mumba had documented challenges in the Zimbabwean elections and promised that the regional bloc’s leaders would discuss the issue. Mnangagwa, in turn, used the opportunity to attend UNGA to engage regional leaders and try to douse the surmounting pressure on him after the shameful elections whose results were rejected by his main rival Nelson Chamisa of the Citizens' Coalition for Change party. CCC is demanding fresh elections. The Sadc secretariat and the bloc’s council of ministers have already blasted the Zimbabwean government over its stance to rubbish the elections observer mission report which said the polls were shambolic. Some Sadc leaders are pushing for an extraordinary summit on Zimbabwe as they resolutely dig in on Harare’s disputed elections although others are willing to let the matter go to rest. Although diplomats have raised concern that not much is being done from key stakeholders in Harare to empower regional leaders to put more pressure on President Emmerson Mnangagwa, calls for special summit are growing. There is consensus in Sadc that the 23 August general elections violated Zimbabwe’s constitution, Electoral Act and Sadc Principles and Guidelines Governing Democratic Elections as highlighted by the regional body’s election observer mission (EOM). Diplomatic sources said minutes of the Extraordinary Meeting of the Sadc Organ Troika Ministerial Committee held on 26 September 2023 captured the thinking of Sadc leaders. The ministers, diplomats said, cannot reflect their own opinions but express the views of their leaders. The minutes showed that the ministerial committee defended the report produced by the Sadc EOM which was headed by former Zambia vice-president Nevers Mumba. The ministers slammed senior Zanu PF and government officials for vilifying Mumba and Zambian President Hakainde Hichilema after the observer mission, for the first time, gave an adverse report on the polls. They said attacks from Harare had the potential of undermining Sadc processes and credibility while insisting that the report reflected the opinion of the regional observers and not Zambia as wrongly portrayed by Zanu PF propagandists. Diplomats told The NewsHawks that the ministers reflected the Sadc opinion which was expressed in a way that heads of state would not do. Hichilema chaired an online Sadc organ on politics, defence and security cooperation troika meeting which discussed the political and security situation in the Democratic Republic of Congo, Zimbabwe’s recent disputed elections and the upcoming polls in Eswatini. Tanzania was represented by Vice-President Phillip Mpango and Namibia by Deputy President Nangolo Mbumba. DRC Defence minister Jean-Pieþ secretary Elias Magosi and secretariat staff, including Elvado Santos and Barbara Lopi, who is head of communication and public relations, also participated in the meeting. A communiquè released after the meeting revealed that the Sadc EOM had presented its final report to Hichilema who was preparing to hand it over to Mnangagwa and the Zimbabwe Electoral Commission. Minutes of the ministerial meeting however gave a reflection of Sadc leaders’ thoughts. “The EO-MCO Troika noted that the SADC Electoral Observation Mission (SEOM) was deployed to the Republic of Zimbabwe to observe the Harmonised Elections which took place on 23rd-24th August 2023. In accordance with the SADC Principles and Guidelines Governing Democratic Elections, the Chairperson of the Organ, His Excellency Hakainde Hichilema, President of the Republic of Zambia, appointed Dr. Mumba, to lead the SEOM to Zimbabwe. “The EO-MCO Troika also noted that the SEOM is mandated to observe elections in terms of the SADC Principles and Guidelines Governing Democratic Elections which all SADC Member States signed and adopted, and have been operational since 2004 . . . . The EO-MCO Troika further noted that all SADC Member States send individuals to serve as observers under the SEOM each time another SADC Member State conducts elections. “For the purposes of the August 2023 Harmonised Elections, observers were seconded from the Republic of Angola, the Republic of Botswana, the Kingdom of Eswatini, the Republic of Malawi, the Republic of Mozambique, the Republic of Namibia, the Republic of South Africa, the United Republic of Tanzania, and the Republic of Zambia.” The EO-MCO Troika noted that the Sadc EOM issued its preliminary statement on 25 August 2023, as stipulated by section 11.8.1 of the Principles and Guidelines. The meeting said the SEOM was meant to produce its final report within 30 days, adding this had been done. In terms of section 11.8.2, when SEOMs officially submit their election reports, member states which held elections may consider the recommendations advanced by the SEOM for improving the conduct of elections; submit to the chair of the Organ, a response to the SEOM report. The ministers then blasted Zimbabwe over its conduct. “The EO-MCO Troika also noted with concern, the personal attacks and threats on the media that have been directed at the SEOM Head of Mission Dr Nevers Mumba and the Chairperson of the Organ, His Excellency Mr Hakainde Hichelima since the Zimbabwe SEOM released its Preliminary Statement on 25th August 2023. “The attacks were made by individuals in both the ruling Zanu PF political party and some in high level positions in the Government of Zimbabwe,” the minutes read. “The narrative in these attacks have been that the SEOM Preliminary Statement on the Zimbabwean elections was personally authored by Dr Nevers Mumba. “The EO-MCO Troika further: (i) noted that such attacks undermine the SADC Principles and Guidelines Governing Democratic Elections and might have a negative bearing on the SEOMs that are to be deployed in the future elections, especially with another election coming on the 29 September in the Kingdom of Eswatini; and (ii) reiterated that SEOMs are in line with the SADC Principles and Guidelines Governing Democratic Elections, and that reports are produced by a collective of the Member States observers, led by the Organ Troika and supported by the Secretariat. “The EO-MCO Troika noted that there is a risk that if unchecked, further attacks on the leadership of the Organ and of the SEOM have the potential to damage the credibility of SADC as an institution.” Ministers commended the secretariat for taking the initiative to issue media statements that clarified the procedures that are followed by the SEOM, as they rebuffed Zimbabwe’s position, while protecting the credibility and leadership of the Organ and the SEOM. Some Sadc leaders have been pushing for an extraordinary summit to deal with the Zimbabwe crisis. Only three leaders attended Mnangagwa’s inauguration, in what was seen as a snub to Mnangagwa following the controversial polls. Mnangagwa however used the United Nations General Assembly in New York to lobby Sadc leaders as the pressure mounted. Although there is consensus that the Zimbabwean polls were shambolic and not free and fair, Sadc leaders are divided on what action to take. “Sadc’s position has been further complicated by lack of a push by key stakeholders in Zimbabwe, including political parties. With each passing day, Mnangagwa’s hand is evidently getting strengthened,” said a diplomat. Ramaphosa still engaging Mnangagwa on sham polls President Emmerson Mnangagwa (left) with his South African counterpart Cyril Ramaphosa
NATHAN GUMA WHILE President Emmerson Mnangagwa has ruled out prospects of a government of national unity, a transitional authority or an election re-run in the aftermath of the country’s recent badly flawed and disputed polls, a governance expert is pressing on with a petition demanding a transitional authority. Academic, author and publisher Ibbo Mandaza said: “Well, we have made a proposal through a petition which is highlighting the fact that the election is disputed and seriously so. And secondly that, this might be the opportunity, with the help of the region, in particular Sadc, South Africa, AU for a transitional government which is different from the GNU of 2009, which will be charged with the reform agenda as a basis. It must be reformed and must be charged with the reform agenda, in order to overcome and transcend the problems that have been facing the country over the last two decades." Mandaza said this in an interview with the South African Broadcasting Corporation on the sidelines of his lecture held at South Africa’s Wits University. “The lecture was an appeal for South Africa and Sadc to do the obvious. That there is room, and we believe that with the kind of consensus around the report, and a clear message from the Sadc mission itself, that there is a basis to begin a new era. Even Zimbabweans themselves, both Zanu PF and the Citizens' Coalition for Change (CCC) know that the country cannot continue like this.” A transitional authority is a temporary government that is established to oversee a period of transition from one government to another in countries that have overseen conflict or political instability among others. Zimbabwe, which held chaotic general elections on 23 August, was plunged into yet another legitimacy crisis with the Sadc Electoral Observer Mission (SEOM), for the first time, pointing out grey areas in Zimbabwe’s polls, much to the chagrin of Zanu PF. “While the pre-election and voting phases were peaceful and calm, the mission noted that some aspects of the Harmonised Elections fell short of the requirements of the Constitution of Zimbabwe, the Electoral Act and the Sadc Principles and Guidelines Governing democratic elections,” the preliminary SEOM report said. Over the weekend, Mnangagwa said the government will not allow talks of a transitional government. “We strongly condemn the opposition who are rejecting democracy and constitutionalism in our country by disregarding our laws, our institutions and our processes. Zimbabwe under Zanu PF will never be a banana republic,” Mnangagwa said during the Zanu Party central committee meeting held in Harare. “The people have granted our revolutionary mass party Zanu PF yet another mandate to govern our great motherland Zimbabwe. This is the reality that the leaders of the opposition, their supporters and their handlers must face in the next five years. Entertaining any talk of a re-run, a Government of National Unity or a so-called Transitional Authority is a pipedream that will never happen. They must wake up from their delusions.” As previously reported by The NewsHawks, Mnangagwa has been advised to think in the best interests of the people of Zimbabwe. Last week, former South African leader Thabo Mbeki urged Mnangagwa to think in the best interests of the people, as part of bringing a solution to the electoral crisis. “After the 2008 elections which were very disputed, and the second round of the elections marked by violence. After that, the Zimbabwe parties agreed that the only way to respond to this reality is that they should come together and form a Government of National Unity (GNU). It was a response to what had happened during the elections,” Mbeki said in an interview with the South African Broadcasting Corporation on the sidelines of the United Nations General Assembly summit. “As I have said, I was directly involved in those processes then, but I have not been now. In 2008 when the Zimbabweans themselves could see that the election could not produce a winner, the best thing to do is to sit and see what we can do together.” Citing himself as an example after he did not resist removal as president of the African National Congress (ANC) in 2008, Mbeki said Mnangagwa should think in the best interests of Zimbabweans. “And that kind of approach, if one says I am a leader of the people of South Africa. What must inspire you is not my position as ANC president or president of the republic, when I had to leave in 2008. It was to say, ‘what is the best interest of the country’? The decision of the ANC was wrong and I said so publicly. They pitched themselves on a wrong opinion expressed by a judge in the Supreme Court of Appeal (SCA) and the SCA rebuked the judge and said he should have never said things like that. I knew that,” Mbeki said. “But in the interests of what happens to South Africa, I thought it was best to say let’s go along with this wrong decision, because to have said ‘No’, to say ‘I’m not going,’ would have created an enormous crisis. I am just saying that because I think people are holding on to political positions. I represent and lead South Africa, I must act as a leader. Same as the leaders of the people of Zimbabwe. What is in the best interests of the people of Zimbabwe? That is how I would have tackled the matter.” NewsHawks News Page 13 Issue 151, 6 October 2023 No government without consensus Former South African leader Thabo Mbeki
Page 14 News NewsHawks Issue 151, 6 October 2023 BRENNA MATENDERE JUST when the generality of Zimbabweans believed President Emmerson Mnangagwa could not go further in his Karanga ethnic consolidation project, he has appointed Loice-Matanda Moyo to head the National Prosecuting Authority (NPA), hot on the heels of appointing Virginia Mabhiza Attorney-General. Ziyambi Ziyambi, a Karanga, was appointed Justice minister, despite having lost in the Zanu PF primary elections to Mercy Dinha twice. Although Ziyambi hails from Mashonaland, his origins are in Shurugwi and he is another Karanga tribesman. Political analysts have since warned that Mnangagwa could soon face alienation and isolation within his ruling Zanu PF party due to his failure to manage the delicate ethic balance in his appointments in government and key offices amid accusations he has overwhelmingly appointed individuals from his Masvingo and Midlands home provinces. The analysts are warning that by increasingly appointing individuals from the Karanga group into vital and strategic positions, Mnangagwa is failing the ethic balancing test, and this could backfire. University of Zimbabwe political science Professor Eldred Masunungure told The NewsHawks that unlike the late longtime ruler Robert Mugabe, Mnangagwa has failed dismally to ensure that key tribes “see themselves in the apex” of state power. “It is vital to be clear about the issue of primordial politics (like ethnic politics) and attendant appointments. First is that ethnicity is a salient and perhaps inevitable fact of political life in Zimbabwe and indeed in most countries with ethnic identities,” said Prof Masunungure. “The trick is not to avoid the ethnic variable in political appointments, but how to manage this factor so that it does not trigger vicious ethnically based conflicts and tensions. Under ex-President Mugabe, it was evident that the centre of gravity of party and state power was Mashonaland West and, within it, Zvimba. "There were even elements of nepotism in appointments. The outer circle of this arrangement included the other two Mashonaland provinces i.e., Mashonaland East and Central that were perceived as part of Zezuruland. However, RG [Mugabe] was more skillful at ethnic arithmetic by ensuring that every ethnic group could ‘see’ itself at the apex of state power, that is, in the presidium, politburo and in cabinet as well as other powerful positions.” Under Mnangagwa, the skillful political ethnic arithmetic practised by Mugabe has been lost. Prof Masunungure said the state of affairs in government, therefore, defeats the mantra of “leaving no one behind” which Mnangagwa and his henchmen have been parroting. “Things look different under the Second Republic. While ethnic arithmetic was a primary consideration under Mugabe, it is a secondary factor under ED [Mnangagwa] with the centre of gravity decisively shifting from Mashonaland West to Masvingo and Midlands that form part of Karangaland, with the Midlands being the favoured province and, within it, Mberengwa,” said Prof Masunungure. “Public perceptions (and as you know these are more important than the reality) are that the ethnicisation of public appointments has now taken more egregious dimensions with potentially pernicious consequences for nation building and social cohesion. If some ethnic identities don’t ‘see’ themselves at the top (which appears to be the case now), this generates feelings of alienation and marginalisation which in turn defeats the mantra of ‘leaving no one and no place behind’. It is imperative that such feelings of peripheralisation or being outsiders be addressed with urgency and determination before they corrode the sense of national belonging. The ball is squarely in the President’s court.” Political analyst Rashweat Mukundu concurred, saying Mnangagwa is taking the wrong path in his ethnic politics by failing to learn from his longtime mentor, Mugabe. “I think there is a continued tribalisation and ethnification of politics in Zimbabwe. I am sure Mnangagwa has learnt from Mugabe, so what we are seeing now is capture of the whole political space and domination of Karanga ethnic group, the Midlands-Masvingo group in all facets of politics, be it in the security, be it in senior government appointments," Mukundu said. “I think Mugabe was a bit mature and a bit cleverer and a bit subtle on this matter. Whereas Mnangagwa is so brazen to the extent that his family, close associates, friends are all part of the feeding trough.” Mukundu, who is also a media development expert, said already it seems there is state capture in Zimbabwe by Mnangagwa’s ethnic Karanga group and his family. “So there is every evidence that we are seeing a capture of the state by an ethnic group and, beyond that, a family which, of course, is meant to facilitate the easy looting and personal benefit from the country's wealth,” he said. Mnangagwa, in his cabinet appointments, became the first leader of the country since colonial times of Ian Smith to appoint his child and direct relatives. Deputising Finance minister Mthuli Ncube is Mnangagwa’s son, Kudakwashe David Mnangagwa, who has no known qualifications or track record in economics beyond a tourism degree he earned barely a year ago from Lupane State University. The ministry of Finance and Investment Promotion was retained by Professor Mthuli Ncube, who is accused of plunging the country down an economic abyss with the highest inflation rate in the world and a moribund currency. The tourism and hospitality ministry, which was split from the tourism and environment portfolio, was assigned to a woman, Barbra Rwodzi, who has no international profile. Rwodzi is from Mnangagwa’s Midlands province. She is known for instigating violence at the Pan-African Parliament during a heated debate and back home where she threatened a police officer who had arrested a thug linked to her election campaign. Rwodzi, who is from Chirumanzu in the Midlands, is deputised by Tongai Mnangagwa, with no known record in the tourism and hospitality sector. Tasked with running the local government ministry is yet another of Mnangagwa’s clansmen from the Midlands province, Winston Chitando, who was the Mines minister in the last cabinet. Chitando again does not hold solid experience in local government administration. What has further disillusioned many in Zanu PF is that individuals tasked with leading key line ministries were drawn from the list of the President’s family members, friends, clansmen, relatives and hangers-on. What has aggravated the disillusionment is that, on Karanga ethnic lines, ministers from the previous cabinet whose performance was below par were either merely reshuffled or retained in their portfolios. Thabani Vusa Mpofu, a Midlander and a presumed Mnangagwa relative, is still holding onto the Special Anti-Corruption Unit in the President’s Office as it is yet to be reshuffled despite having become moribund over the years. Mnangagwa and the Rushwayas are blood relatives as they are his nephews and nieces. Resultantly, Martin Rushwaya, a nephew, was appointed Chief Secretary in the Office of the President and Cabinet last month. The same Rushwaya is a close relative of Henrietta Rushwaya and Helliet Rushwaya. Under Mnangagwa’s administration, Helliet once served as acting chief executive officer of the Zimbabwe Broadcasting Corporation which is entrusted with running the Zanu PF government's moribund propaganda unit, while Henrietta gained infamy after she was arrested at Robert Mugabe International Airport with six kilogrammes of gold while in the company of a team of Mnangagwa’s personal bodyguards who included Stephen Tserayi. Henrietta retained her position at the Zimbabwe Miners’ Federation, despite facing serious charges that exposed the massive leakages in the country’s extractives sector. Mike Madiro, a Mnangagwa ally since the "Tsholotsho Declaration" that was supposed to be made at Dinyane Primary School in 2004 to catapult him to be Vice-President before Mugabe picked Joice Mujuru, is now board chairperson of the National Railways of Zimbabwe. Madiro was appointed by Mnangagwa last month. He was the Manicaland provincial chairperson in 2004 and travelled to Tsholotsho to do Mnangagwa’s bidding at the ill-fated Dinyane meeting where the ambitious gladiator failed to gatecrash into the presidium as Vice-President. Madiro’s recent appointment is a reward for the long journey he has traversed with Mnangagwa. In order to manage the security sector and achieve coup-proofing strategies, Isaac Moyo, another maternal uncle of Mnangagwa, was recalled from South Africa where he was serving as the country’s ambassador and appointed to be the head of the Central Intelligence Organisation. Reports also say the Commander Defence of the Zimbabwe Forces, General Phillip Valerio Sibanda, is closely linked to Mnangagwa as they share the same totem, Shumba. This means the security sector is aligned with Mnangagwa’s clansmen. Misheck Sibanda, who was replaced by Rushwaya, was again from the same bloodline. Paul Mangwana, a fellow clansman of Mnangagwa and close associate, is the Zanu PF secretary for Legal Affairs, while the brother Ndavaningi "Nick" Mangwana was brought in from the United Kingdom to become the chief government spokesperson in his capacity as the permanent secretary in the ministry of Media, Information and Broadcasting Services. Upon his appointment as Vice-President under Mugabe in 2014, Mnangagwa demonstrated his excesses when he bequeathed his Chirumhanzu-Zibagwe parliamentary seat to his wife, Auxilia. July Moyo, who for long was leader of the Lacoste faction which overpowered the rival G40 formation in the succession battle during Mugabe’s twilight, was retained in cabinet, this time as Public Service minister, despite his dismal performance in the previous cabinet as Local Government minister where he was caught in multiple corruption scandals. Mnangagwa also tried to keep his political interests in Kwekwe alive by retaining Owen "Mudha" Ncube as Midlands provincial affairs minister after having fired him as State Security minister for “conduct inappropriate for a minister of government”. Professor Amon Murwira from Nzuwa village in Gutu, Masvingo, is in the current cabinet. Another Karanga from Zvishavane, who is also a long-time ally of Mnangagwa implicated in the infamous Willowgate scandal in which he was convicted for criminal conduct, Frederick Shava, was retained as Foreign minister in the current cabinet. Despite Oppah Muchinguri-Kashiri having complained that army generals had no respect for her, she was retained as Defence minister. While she is widely touted as the Manicaland godmother, she is a key Mnangagwa ally who despite speaking with a heavy Manyika accent, is actually Karanga and comes from Masvingo. Her father moved to Manicaland province as an agricultural extension worker (mudhumeni/umlimisi) and settled in the province. Muchinguri-Kashiri was reportedly influential in the appointment of her own niece, the late Ellen Gwaradzimba as provincial minister of Manicaland and Nokuthula Matsekenyeri, who had to be struck off from the cabinet list because Mnangagwa had exceeded the required number of non-elected MPs appointed into cabinet. Jenfan Muswere, a close friend of Emmerson Mnangagwa Junior, was rescued from the loss in a primary election and appointed Information minister on the basis of his relationship with the President’s son. Prosecutor-General Loice-Matanda Moyo Mnangagwa’s shocking ethnic hegemony project unmasked
NewsHawks News Page 15 Issue 151, 6 October 2023 MINISTRY of Information Communication Technology (ICT) permanent Secretary Dr Beaullar Chirume (pictured) has torched a storm in government after she defied President Emmerson Mnangagwa's directive that permanent secretaries should not travel out of the country with their relevant ministers or at the same time to avoid paralysing ministerial operations and crippling service delivery. Official sources say Chirume travelled to Saudi Arabia with her minister Tatenda Mavetera for the Universal Postal Union Fourth Extraordinary Congress which started on Sunday and ended today. This is a brazen defiance of Mnangagwa’s directive as she was not supposed to go there in line with the new directive. Only recently, Mnangagwa directed that "no minister and permanent secretary can both be out of the country at the same time as this has negative implications on service delivery and general government business". “All members remain guided by the relevant circular on foreign travel. In this regard, no minister and permanent secretary can both be out of the country at the same time as this has negative implications on service delivery and general government business. Further, travel outside the country will be strictly limited to those programmes which are of strategic importance and contribute to our country’s national priorities,” Mnangagwa said. The congress in the Gulf State was attended by 192 member countries to deliberate on global postal development issues. The Universal Postal Union is a United Nations specialised agency which coordinates postal policies among members states and facilitates a uniform worldwide Postal system. It is headquartered in the Swiss capital Bern. Despite the new government policy that ministers should not travel with their permanent secretaries or be out at the same time, Chirume went with Mavetera, which is a brazen defiance of government policy. Not only did Chirume defy the policy, reports also say while Matevera is now back home, she will only be back on Monday. While in Saudi Arabia, Mavetera posted on X (Twitter): “As the current Chairperson of the Pan African Postal Union (Papu) & Min of ICTPCS, I have a keen interest & huge zeal on the development of the postal sector around the globe. “My emphasis is on ensuring that Zimpost and its ancillary services become the centre of e-commerce through digitisation. This requires great collaboration and coordination with other countries as goods move from country-to-country. It is imperative to note that the postal sector is not, contrary to misconception, dormant, but undergoing robust transformation through new, exciting, even disruptive technologies and innovations facilitated by the magic of digitisation. “We should, therefore, thrive on enhancing e-commerce, digital financial services, and overall digital technology. This will surely promote efficiency and traceability of postal & courier services as we move towards our desired digital economy & and the achievement of Vision 2030. “I am therefore, through my ministry, excited and geared to unlock untapped opportunities presented by a digital postal system for the betterment of Industry, commerce, consumers and especially our underserved rural areas.” Government officials jostle for foreign trips as they use them as holiday opportunities and for lucrative allowances. Chirume was appointed last year in May by Mnangagwa, in terms of Section 205(1) of the Constitution of Zimbabwe of No. 20 of 2013 as amended, as the permanent secretary for the ministry of Information Communication Technology, Postal and Courier Services. Chirume took over following the retirement of Engineer Samuel Kundishora on 31 December 2021. Chirume holds a Higher National Diploma in Systems Analysis and Design, a National Diploma in Business Computer Programming and a National Diploma in Information Processing. She also has a Master’s Degree in Business Management and PhD in Information Communication Technology and Multimedia Studies. — STAFF WRITER. Permanent secretary defies Mnangagwa on foreign trip ICT permanent secretary Dr Beaullar Chirume
Page 16 News NewsHawks Issue 151, 6 October 2023 NATHAN GUMA WHILE President Emmerson Mnangagwa has sensationally claimed that Zimbabwe's mining has surpassed a US$12 billion target set for 2023, the latest statistics by the Zimbabwe Statistical Agency (ZimStat) show that the mining industry is trailing the wholesale and retail sectors in terms of contribution to gross domestic product. Zimbabwe has since October 2019 been pursuing a US$12 billion mining economy vision to be attained by 2023 based on revenue generated from various minerals including diamonds, lithium, iron ore, chrome, platinum, and gold. Speaking during a Zanu PF central committee meeting held in Harare over the weekend, Mnangagwa said Zimbabwe has already surpassed its target, with focus now being on environmental management. “To date we have surpassed the US$12 billion mining sector target. I, however, call upon the central committee and party leaders in general to encourage our miners to adopt good environmental practices,” Mnangagwa said. “Communities must benefit from our rich God-given natural resources in rolling out our plans as the party and government. We must continue advancing the ideals of our party, the national interest and programmes that are good for the people of our motherland Zimbabwe. Let us equally be true to our African values, our beliefs and our priorities. I therefore urge the Central Committee to nurture the culture of open, frank, factual and objective dialogue to enhance our operation efficiency and effectiveness.” However, according to ZimStat’s latest preliminary annual GDP estimate for 2022 presented on 3 July by ZimStat director Taguma Mahonde, mining has been trailing behind other industries in its contribution to the GDP. Of the top five contributors, mining with a 13.2% contribution has been trailing behind wholesale and retail trade with 18.7% out of a total GDP of ZW$12,388 trillion in 2022. The country’s GDP is also expected to reach US$21.78bn by the end of 2023, according to Trading Economics global macro models and analysts’ expectations. Major contributors include agriculture with 12%, manufacturing with 11.2% and finance and insurance, with 8.2%. “Industries that recorded highest growth rates in 2022 were: Accommodation and Food Services with 23.7%, Finance and Insurance, 15.6%, Information & Communication, 14.1%, Mining and Quarrying, 10.5%, Transport and storage, 6.6%, Agriculture, 6.2%,” according to Zimstat. Economist Professor Gift Mugano says the statistics presented by Mnangagwa are misleading. “We want government to be transparent about the figures. Our size of the economy is small. That is why you see that we have a US$20 billion which has not been growing over time. The challenge about the economic growth issues in Zimbabwe and sectoral contributions to the economy have been characterised by misinformation,” Professor Mugano told The NewsHawks. “You cannot say that agriculture achieved US$8.5 billion. If I would like to follow the growth rate argument, it means the mining sector forms our GDP and nothing else. We do not want to dwell on the exact size of the economy but we want to say these figures are not correct.” Mugano added: “Because we just take two sectors, the mining sector with US$12 billion and agriculture with US$8.5 billion. Are we saying that is the economy? Where is manufacturing? Where is the services sector? In actual sense, the services sector constitutes 60%. The other sectors are supposed to share the remaining 40%, but if two of the sectors give you the size of the whole economy, does it make sense?” A natural resource watchdog, the Centre for Natural Resource Governance (CNRG), said government’s claims of reaching economic benchmarks have not been reflected in the national GDP. “It is hard to evaluate something whose objectives were not clear from the onset. The US$12 billion mining economy was more of a political statement or a vision of some sort. But there were no benchmarks or milestones to be reached on the road to the $12 billion mining economy,” Farai Maguwu, CNRG founder, told The NewsHawks. “Whatever they claim to have achieved is not reflecting in the GDP, Annual Budget, mine workers’ remuneration and corporate social responsibility. Living conditions in the mining affected areas remain traumatising.” Maguwu said Zimbabwe may be losing more revenue from than it is gaining, with the mining sector riddled with illicit mineral leakages. “The mineral sector continues to be haunted by organised crime, massive leakages and illicit financial flows. Less gold is going to Fidelity compared to what is smuggled out of the country. Even with our lithium, we have become a net donor to the People's Republic of China,” he said. “A big lie was sold to the nation that the Chinese are beneficiating lithium when in actual fact they are merely crushing ore into concentrate and shipping it to China with a dozen undeclared minerals which they extract upon arrival in China.” Zimbabwe has also been losing precious minerals through porous borders, with security forces and border officials manning the entry points seriously incapacitated to plug illicit flows as shown by the Parliamentary Portfolio Committee on Defence, Home Affairs and Security Services in June. The country has been losing minerals, ranging from diamonds and gold through wellknit syndicates that involve security officials, foreigners and local smugglers who have been taking advantage of lack of knowledge by the officials manning borders. According to the report, the parliamentary committee was informed by the Zimbabwe Revenue Authority (Zimra) that there was a stretch of 230 kilometres of the borderline encompassing Zimbabwe, Mozambique and South Africa, which was poorly manned by law enforcement agencies in Zimbabwe. Along that borderline there were over 15 well-known unregistered exit and entry points between the three countries. Smuggling has also been rife at the points, while there have also been gold leakages, among other commodities. Security organs, which include the Zimbabwe Republic Police and the Zimbabwe National Army, have also been unable to control the illegal crossing points because they do not have vehicles, while the roads are impassable, according to the report. ZimStats figures disprove Mnangagwa’s mining brag
NewsHawks News Page 17 Issue 151, 6 October 2023 NATHAN GUMA WHILE President Emmerson Mnangagwa was meeting with his South African counterpart Cyril Ramaphosa during the launch of the Border Management Authority (BMA) in Beitbridge, a mayor from the South African main receiving town of Musina, in Limpopo Province, was complaining over pressure on resources being exerted by undocumented migrants. The BMA, established by a South African Act of Parliament, is responsible for restricting the illegal movement of people and goods between Zimbabwe and South Africa. Beitbridge Border Post, the busiest inland port of entry in Sub-Saharan Africa, is the transit zone for migrants from across Zimbabwe and Africa. There are millions of Zimbabweans in South Africa who have fled political, economic and social problems back home. Ramaphosa on Thursday met Mnangagwa behind the scenes in a bid to resolve the protracted Zimbabwe crisis following recent disputed elections yet again, that have been rejected by various observer missions, including the Southern African Development Community (Sadc) team. South Africa’s ruling African National Congress (ANC) has also been blamed for endorsing Zimbabwe’s sham election which has plunged Zimbabwe into a spiral of economic and political instability. Nkhanedzeni Godfrey Mawela, the mayor of Musina Municipality, on Thursday said the town has seen little benefit, despite it being a major trading point, with illegal immigrants putting pressure on amenities. The town is also major trading point for Zimbabwean informal traders. “As a municipality we can say that we are strategically located, but currently given the illegal activity, we are not benefitting anything. Actually, we see it as a burden because the flow of foreign nationals is a burden to the municipality,” Mawela said in an interview with the South African Broadcasting Corporation. “They (migrants) do spend money this side. What we are talking about as a burden is that we budget money here for the local people. But when these illegal foreign nationals come without our knowledge, they use the same infrastructure and the budget that we would have set aside for our almost 100 000 people.” He said the town’s health facilities have also been largely filled by foreign nationals seeking medication in the border town. “We are a municipality that is struggling with water and a number of service delivery issues. So the uncontrolled flow of foreign nationals becomes a burden. We are happy that the government, even the President himself, is taking this thing seriously, to consider giving support to the municipality, to give service to our people including the foreign nationals,” he said. “We have a hospital here. If you go to Musina hospital, they will tell you they receive foreign nationals almost every now and then. Actually the hospital is home to foreign nationals who are coming here now and again. Look, they are using the medication and everything that is meant for our people here. It ends up servicing foreign nationals who are coming illegally. We want the national government to be coming to help us solve the situation." Many Zimbabweans have been flocking to South Africa for better healthcare, amid a deepening socio-economic crisis which has seen public health facilities fail to provide life-saving services. In September last year, the head of health in South Africa’s Limpopo province, Dr Phophi Ramathuba, said the failure by the Southern African Development Community (Sadc) to tackle the migration crisis in the region has been straining the country’s health delivery system, whose resources are insufficient to cater for undocumented foreigners. “How I wish that governments would be able to come on board and be able to assist in making sure their citizens are catered for. If they cannot, but would like South Africa to assist, we should formalise it and give the bill which Zimbabwe, Mozambique and others should be able to pay . . . we are not going back on this. “There was a time the Member of the Executive Council (MEC) for Gauteng … was our deputy minister. They also sent bills to different government embassies. We have not received the joy of getting such support,” she said, as previously reported by The NewsHawks. Zimbabweans have been flocking to South Africa for better health services following the deterioration of the health sector, with Limpopo province being the nearest port of call. “People of Zimbabwe should also work with their government to deal and resolve these problems. If the citizens do not take interest and say we have an alternative … South Africa’s health system will also crumble and we will not have anywhere to go,” she said. The province has been doing “means tests” on patients to allow for universal healthcare for people who cannot afford secondary education, but this has made it difficult for the health department to make follow-ups on money owed by patients, she said. Ramathuba said undocumented migrants largely comprise low-income and unemployed people, and their lack of documentation has been making it difficult for her as head of health to track down money owed by patients. Musina mayor decries influx of Zimbabweans Musina Municipality Mayor Nkhanedzeni Godfrey Mawela.
Page 18 News NewsHawks Issue 151, 6 October 2023 NATHAN GUMA ALTHOUGH Zimbabwe's Foreign Affairs and International Trade minister Frederick Shava has removed Professor Gift Mugano from the ZimTrade board on the basis of incompetence, the economic expert says this move shows the regime's growing impunity against alternative voices. ZimTrade is a joint venture partnership between the private sector and the government that promotes the country’s exports to global markets. Mugano, who worked for government, is a professor of economics and director of the Centre for African Governance at the Durban University of Technology in South Africa. In August, he said he had quit working with the government, saying they do not listen to policy advice, and that he now supports the main opposition Citizens' Coalition for Change (CCC) leader Nelson Chamisa. This week in a letter dated 4 October, Foreign Affairs secretary James Manzou wrote to Mugano saying the ministry had with immediate effect terminated his membership from the ZimTrade board in terms of Article 10 of the Constitution of ZimTrade as read with Section 16 of the Public Entities and Corporate Governance Act (Chapter 10:31). “I wish to thank you for the services rendered to the Board and the Ministry and to wish you well in your future endeavours,” read part of the letter addressed to Clara Mlambo, ZimTrade chairperson and Allen Choruma, permanent secretary Corporate Governance Unit (CGU). Mugano has however told The NewsHawks that his removal from the ZimTrade board is part of the government’s crackdown on dissenting voices. “I hear all this nonsense they have been saying on social media that I was fired because of incompetence. How can do you say a professor for being incompetent? A professor who is sitting on on the board of ZimTrade, who is doing similar work in the region for various international organisations and governments helping them to position for exports?” Prof Mugano said. “A professor who has produced six doctors in international trade, Doctor of Philosophy (PhD) holders, and providing guidance to professors. A professor who has written books that are on Amazon and various selling platforms, on international trade and Small to Medium Enterprises (SMEs). And, a professor who was very instrumental in the work of ZimTrade. I was a chairman for that matter of the Export Development Committee. Added Mugano: “So, when they appointed me to be a chairman of the board, where was the incompetence? This is politics. What matters is what next for the government? Are they going to continue fighting intellectuals because they have disagreed with them in whatever case, be it economics or politics?” Professor Mugano said he will remain resolute in despite government’s overtures to silence him. “This is not the first time I have been harassed. Even at one of the local Universities I used to work, I was harassed there. But there is a point where the world has to know that, when we say government does not want alternative views, this is the evidence. “I was serving and helping them (ZimTrade). If they do not want to be helped, I do not pursue to say ‘let me help you’! I just feel sorry for those who were benefitting from my technical expertise, our exporters, the young women and young men, because we had strategic programmes to help young women and men.” “We had programmes like The Eagles Nest and Next She Exporter. Those programmes were coming from our committee! Also, the export development cluster which we were guiding management to do, those things were coming from the committee, and it is known.” In August, Mugano said he was last year kicked out from another state institution last year for his criticism on government’s decision to suspend lending, leading to his eventual blacklisting from key national events such as budget consultations. He said his recent removal from the ZimTrade board shows dilution of quarsi-government by toxic party politics. “I feel sorry because ZimTrade is a beautiful organisation. It is not a Zanu PF organisation. They should not do that and say we are friend to all and enemy to none. How can they even implement this when they are enemies with their directors? “I am praying that one day we become mature like South Africa where Ramaphosa interacts with the opposition. Not for a minister to say I am firing you from the Board because you voted for Chamisa. I voted for him because he is a Zimbabwean and he was put on the ballot box. And I made it clear because it is our democratic right. “Davison Gomo is a Zanu PF principal director in the commissariat, he is in Human Resources manager. So there is no basis for them to say you voted for Chamisa, you spoke politics. The same Gomo addressed media attacking Chamisa (Nelson) and he is a Zanu PF technical director. I even know people who are Zanu PF in the Board who never came out in public.” Mugano’s removal from ZimTrade a calculated ploy to silence criticism Professor Gift Mugano
NewsHawks News Page 19 Issue 151, 6 October 2023 RUVIMBO MUCHENJE SELF-PROCLAIMED secretary-general of the Citizens' Coalition for Change, Sengenzo Tshabangu, is adamant that he holds the position despite being dismissed as a fraudster by party officials. Tshabangu brewed a storm when he wrote letters to Parliament and the ministry of Local Governmnet, on a CCC letterhead, purportedly recalling 15 members of Parliament and 17 councillors. The NewsHawks contacted him for comment as to how he became the secretary-general, given the widespread narrative of a structureless CCC that only has a president, Nelson Chamisa, spokesperson Promise Mkwananzi, deputy spokesperson Gift "Ostallos" Siziba and national organising secretary Amos Chibaya in “official” positions. Tshabangu came out guns blazing, saying the media has been selectively scrutinising CCC processes. “Do Mahere, Ostallos, Promise and Chibaya have their appointment letters?” he asked. “Is that question motivated by my role as SG? Why didn't you raise the same when Mahere was displaced from her position? Why is it that a similar question was not raised when Promise became party spokesperson?” asked Tshabangu. Tshabangu insisted he had a letter of appointment, but did not furnish The NewsHawks with the said document. “There are no word appointments in politics. Yes (there is a letter),” he told The NewsHawks. The CCC has been under fire on social media for not having clearly defined structures, but the party’s argument has been that its political plan is anchored on "strategic ambiguity". There have also been allegations of imposition of candidates in the absence of such structures, but the CCC’s appointed officials have denied them. Tshabangu’s letters were received and stamped by both Parliament and the ministry of Local Government on 3 October 2023. “Yes, Parliament received my letter. Find an attached copy of the same,” he said. If Parliament considers the letters, the net effect is that the CCC will end up with reduced numbers in Parliament, effectively giving Zanu PF a two-thirds majority via the backdoor. Tshabangu is a longtime politician who once served as the MDC-T Matabeleland North chairperson in 2008. Around 2012, he then joined the breakaway MDC group led by Welshman Ncube which was founded in October 2005. He is reported to have joined the now defunct PDP which was founded by former Harare East MP Tendai Biti. Tshabangu is not new to controversy. During the hearings at the commission of inquiry into the 1 August 2018 shootings, he was seen defending Zanu PF for the Gukurahundi genocide. He sought to separate Zanu PF from the government, which has proved difficult given the depth of conflation. “The Gukurahundi was not executed by Zanu PF; it was done by the state through its Korean-trained people. I am trying to make you understand the role that the state has played in all the violence in this country,” he said. This coming Tuesday, all eyes will be on Parliament to see how Tshabangu's controversial matter is handled. ‘Bogus’ CCC secretary-general Tshabangu sticks to his guns Self-proclaimed CCC secretary-general Sengenzo Tshabangu (front)
Page 20 News NewsHawks Issue 151, 6 October 2023 NATHAN GUMA ANTI-ILLICIT drugs activist Savannah Madamombe says the government might have done well by introducing new measures that will see the creation of new rehabilitation centres, but the authorities will have to partner independent organisations to ensure human rights are respected in those institutions. Substance abuse has continued to escalate in the country and is now a menace in both high-density and low-density suburbs, as well as schools, including elite private institutions. As consumption of dangerous drugs has risen, the mental health of addicts has taken a severe battering, with six out of 10 patients admitted to mental institutions suffering from drug-related issues, according to narcotics experts. This week, cabinet approved a report with a raft of measures to control drug abuse, presented by the Inter-Ministerial Task Force on Drug and Substance Abuse led by Defence minister Oppah Muchinguri-Kashiri, which will see the creation of new rehabilitation centres. “Cabinet agreed on the following measures to strengthen the Anti-Drug and Substance Abuse Programme: that two pillars dealing with legal and policy issues and finance and resource mobilisation will be constituted; that all idle Provincial Covid-19 isolation facilities will be converted into multi-sectoral drug rehabilitation centres,” the government announced through Tuesday's cabinet minutes. “That Dr Agnes Mahomva will be appointed as the National Coordinator of Inter-Ministerial Taskforce on Drugs and Substance Abuse; to urgently resume capacitation of sub-national structures including traditional leaders and religious group leadership on drug and substance abuse.” However, Madamombe told The NewsHawks that there is a need for the government to partner independent organisations to avoid disaster complications that arise from rehabilitation centres, including the abuse of human rights. “It is an incredible idea. We have been waiting for the government to start treating the issue of drugs as a pandemic, as it is regarded all over the world. So this is the exact reaction that we were hoping they will take, using the same measures we were using on Aids and Covid-19, dealing with it as an isolated issue. This needed reaction like this where we need to take it as an epidemic,” Madamombe said. “But, the problem is that government needs to partner with other organisations that have been working with issues like this. Because it is not a matter of just taking young people in these large spaces, it could also be a disaster, because the reaction of young people in a space where they do not have access to drugs, it can be disastrous.” Madamombe said while it is important to promote rehabilitation, it would also be easy to promote violation of rights if improperly done. “There is a documentary I watched where an African country, heavily Muslim, where they would take young drug addicts by force and put them in these places (rehabilitation centres), but it almost became like a concentration camp, where they would force them to drink from some coffin and beat them up. “That is not what I hope will happen. We hope there is going to be a place where there is peace and understanding. That is why the World Health Organisation (WHO) is telling organisation, for example at Mubatirapamwe we are doing trainings with WHO on quality rights. “This is going to play a key role on overseeing and teaching people because this is going to play a key role in helping people we are seeking to help, because there are mental health issues and violating their rights is very easy.” The taskforce says it has increased security measures to cut the supply of illicit drugs through Zimbabwe’s borders. According to the Inter-Ministerial report presented in cabinet, raids and operations against drug suppliers, dealers and peddlers have seen 5 367 offenders being nabbed between 7 July and 23 September 2023. “This represents a sharp increase on the 4 328 arrests made for the whole year of 2022. A total of 81 bases, where drug users and peddlers converge to sell and consume drugs, were destroyed during the period under review. “Cabinet highlights that four ZRP Drugs and Narcotics Units have been established at four border posts, namely: Beitbridge; Victoria Falls; Chirundu; and Mutare. These posts at points of entry are meant to curtail the inflow of drugs. “Inland posts have also been established at the Robert Gabriel Mugabe, Joshua Mqabuko Nkomo and Victoria Falls airports. New technologies like drones are also being used to monitor the country’s borders in addition to the traditional surveillance methods in order to reduce smuggling and trafficking of drugs.” The taskforce also said that interventions by the Liquor Licensing Board have reduced unlicensed liquor outlets, vendors and peddlers as well as licensed outlets operating outside the agreed terms and conditions. “These include inspections of premises, investigations against public complaints and cancellation of licences. The Medicines Control Authority of Zimbabwe (MCAZ) has cancelled seven licences for wholesalers and de-registered one.” As previously reported by The NewsHawks, drug dealers have been penetrating all facets of society, including schools, flooding them with illicit drugs. Disguised as muffins, ganja cakes are also being sold in schools by some children working with drug syndicates which have terrorised townships, setting up base and flooding the market with dangerous narcotics. In Kambuzuma, parents have reported cases of drug abuse among their children who are now in the habit of skipping school to sniff the dangerous substances. In Bindura and Guruve, in Mashonaland Central province, a dangerous beer called “Tumbwa” has ravaged lives. This has been one of the substances being consumed by young people in high-density areas like Mbare. The brew is disguised in freezit packaging, with parents fearing the dangerous homemade whiskey will be sold in schools. In January, the Dominican Convent in Harare, a Roman Catholic-run school, expelled eight Upper Sixth students on allegations of drug abuse. The girls allegedly abused drugs during leadership camp in Nyanga. Sister Kudzai Mupfure, the headmistress, informed parents in a circular that the school’s investigations showed the pervasive behaviour began at home. “My heart aches for these girls and their parents, but my duty of care is to ensure that the school environment is as far as is practicable, safe and free from all risks. “I pray that the girls will get the rehabilitation they need and that all parents take an active role in partnership with the school community and possessing, using or supplying a restricted substance including vaping is not acceptable. Investigations are still ongoing and we will not hesitate to weed out any more culprits to sanitise the school space,” she said is a statement. Anti-drug menace needs holistic approach: Activist Anti-illicit drugs activist Savannah Madamombe
NewsHawks News Page 21 Issue 151, 6 October 2023 BRENNA MATENDERE THE Zimbabwe School Examinations Council’s November Ordinary and Advanced Level examinations face a fresh hurdle after rural teachers this week wrote to the institution demanding contracts before they invigilate. In a letter dated 2 October 2023 signed by Amalgamated Rural Teachers' Union secretary-general Robson Chere, addressed to Zimsec director Lazarus Nembawire, the educators said the smooth running of examinations can only take place if separate contracts are provided on top of the ones they have with the Public Service Commission. Part of the letter reads: “It is crucial that Zimsec considers signing contracts with teachers for invigilation, along with clear payment terms, in order to ensure the efficient and effective administration of exams,” Nembawire wrote. “As you are aware, teachers are employed by the public service primarily to fulfill their teaching duties within schools. These duties include lesson planning, curriculum delivery, student assessment, and other related responsibilities. However, it is important to recognize that invigilating examinations is a separate task that requires additional time and effort from teachers.” The Amalgamated Rural Teachers' Association of Zimbabwe secretary-general emphasised that by signing contracts with teachers specifically for invigilation, Zimsec will establish a clear understanding of the expectations and responsibilities involved in their role of invigilation. “This will help ensure that teachers are adequately compensated for their extra efforts and time dedicated to invigilating exams. Moreover, having a formal agreement in place will provide a legal framework that protects both parties' rights and obligations,” reads part of the letter. “In addition to the practical benefits mentioned above, signing contracts with teachers for invigilation will also have positive implications for teacher motivation and morale. Recognizing and compensating teachers for their additional responsibilities will serve as a form of acknowledgment and appreciation for their dedication to the education system. This, in turn, will contribute to increased job satisfaction and overall teacher well-being. “I kindly request that you consider this proposal seriously and take the necessary steps to initiate discussions and negotiations regarding the signing of contracts with teachers for invigilation. "Thank you for your attention to this matter. I look forward to a positive response and fruitful collaboration in improving the administration of Zimsec examinations.” In an interview with The NewsHawks on Thursday, Chere explained why the rural teachers had taken that route. “We have had a tradition where schools through the ministry manipulates teachers to carry out extra Zimsec work through handling and conducting exams which is not part of teachers contracts. Zimsec had over the years failed to pay for these extra services. Teachers raised this issue with us as a union and we resolved to engage Zimsec,” he said. In November last year there was confusion over the payment of allowances for teachers invigilating final year examinations after the Zimsec denied responsibility. Zimsec said the obligation to pay invigilators fell under the Public Service Commission (PSC), but the then Public Service minister Paul Mavima said his ministry had no control over invigilation contracts. The Progressive Teachers' Union of Zimbabwe (PTUZ) wrote to Zimsec threatening to boycott supervising the examinations if there was no commitment to pay for the services. Responding to PTUZ, Zimsec boss Nembaware said the responsibility to pay invigilators fell under the PSC. Nembaware said his position followed a resolution made at a 2019 meeting “where the matter of the invigilation of examinations was addressed by the Ministry of Primary and Secondary Education (MoPSE)”. “The forum which was attended by representatives of all teacher unions, MoPSE and Zimsec, comprehensively discussed this and other issues to do with teachers who are involved in invigilating examinations, the MoPSE, then represented by chief director J Dewah and Mr P Muzawazi (retired), adjourned the meeting with an undertaking to engage the employer of teachers which is the PSC,” Nembaware wrote to PTUZ. “The responsibility that your letter puts on Zimsec belongs to another entity and we cordially advise you to seek engagement with the relevant authority.” But Mavima then insisted that Zimsec is administered by the Primary and Secondary Education ministry and the Public Service ministry has no control over the contract between Zimsec and its invigilators. This confusion has since motivated the latest move by Artuz to pin down Zimsec before the examinations are rolled out next month. Fresh hurdle for Zimsec Nov exams
Page 22 News NewsHawks Issue 151, 6 October 2023 PATRICIA RWAFA HARARE residents are fretting over the recurrence of the cholera outbreak, amid concerns over the City of Harare’s (CoH) failure to provide a consistent supply of running water. The local authority on Thursday this week issued a statement, warning residents of the outbreak, with cases being recorded in five suburbs in the capital city. “The City would like to inform residents that it has now 5 confirmed cholera cases in Hopely Zone 5, Stoneridge, Southlands, Granary, and Adbernie Mbare. Three of the cases had visited Buhera where there is a cholera outbreak while some may have contracted from local sources,” CoH announced on its X account. On Wednesday, the Health ministry told AP that 30 people have died of cholera countrywide. A total of 905 confirmed cases had been recorded. Residents who spoke to The NewsHawks said the outbreak is likely to be worsened by acute sewerage problems and uncollected garbage. Despite fears of another outbreak, CoH has assured residents, saying they are working to suppress the outbreak. "The Health department is monitoring the situation on the ground and we are doing what we call 'contact tracing'. We have also discovered that the cholera outbreak was first linked to Buhera. We have not yet recorded any deaths," said Stanley Gama, the CoH public relations manager. Community-based organisations said the city cannot afford to be hit by another outbreak. Cholera remains a serious public health crisis in predominantly overcrowded areas where access to clean and sanitation is a challenge. “Use of alternative unsafe water sources such as unprotected shallow wells due to the erratic water supplies. Underground water maybe contaminated by leakages from the dilapidated sewerage system, unfortunately there is general low practice of treatment of drinking water from the boreholes or the protected and unprotected dug wells,” Itai Rusike, the executive director for Community Working Group on Health, said. “Other risk factors for cholera include certain religious groups with low health seeking behaviours and deliberate efforts should be made to engage leaders of the religious groups in order to encourage their membership to seek for treatment whenever they suspect cholera infection.” Rusike said there is a need for a multi-sectoral approach to eliminate cholera by increasing access to clean, safe and sustainable water supply at household level including access to basic sanitation facilities. “Oral cholera vaccine should be deployed to the identified hot spots and the government should seriously consider nationwide cholera vaccination and this should be combined with sustainable long-term Water Sanitation and Hygiene interventions to prevent recurrence of cholera outbreaks,” he said. “Community involvement and community ownership is essential for effective responsible. We need to increase cholera awareness and prevention at community level and this should include early detection, referral of suspected cholera cases through community based surveillance.” Previous cholera outbreaks have been disastrous, exacting a heavy toll. For instance, the 2008-2009 cholera epidemic in Zimbabwe resulted in 98 585 reported cases and 4 287 reported deaths, making it the largest and deadliest in the history of Zimbabwe, according to statistics. The initial outbreak was notable for its high cumulative case fatality rate (4.3%) that persisted over a protracted 10 months. Harare reels from cholera scourge amid water scarcity
NewsHawks News Page 23 Issue 151, 6 October 2023 NYASHA DUBE ZVISHAVANE Town Council vice-chairperson Itai Pasira has vowed to push for the prioritisation of women's socio-economic needs in the local and national budget, as the 2024 budget consultative meetings kick off in most local authorities. Pasira is one of a few women who were elected as deputy mayors in local authorities in the just-ended elections. "For years, I have always been vocal about women's issues and I have always pointed out policies that are not gender sensitive. I have been a councillor for three consecutive terms but I kept seeing the suppression of women's voices in council's programming," Pasira said. Pasira is a Citizens' Coalition for Change councillor for ward 8 in Maglas, one of the poorly serviced high-density residential suburbs in the mining town. The ward is part of the Shabanie-Mashava Mine premises. After the collapse of the former asbestos giant, the area experienced poor social service provision. The community grapples with water shortages, poor housing, use of public toilets, unavailability of healthcare facilities and generally poor standards of living. Women are among the most vulnerable groups in this particular community. "As a councillor for a privately owned mining area, I have faced a lot of setbacks in trying to address community needs at local governance level because for a long time there were clashes between the local authority and the mine over ownership and service provision for the area," Pasira said. "When I was elected vice-chairperson, people in my ward were very happy because they finally had hopes that their issues would be heard and addressed. Women's issues were rarely prioritised, but now I have a chance to speak from a position of authority." Pasira said as a woman in politics she has had a fair share of challenges. "The political arena is hostile, women are labelled and we are limited by socio-cultural beliefs which undermine women's ability to lead," Pasira said. At a personal level, Pasira says being elected vice-chairperson boosted her confidence. "When I was at committee level, I felt like most issues we raised as women were being sidelined, but ever since I was elected in that position, I feel capable of influencing decisions that are made in the local authority. I am positive that in the coming five years I would have achieved a lot," she said. Asked on her priorities for this term, Pasira said her main target is to push for more women to participate in the 2024 budget consultation meetings. "Right now, the 2024 budget cycle has begun, with consultations currently going on. There are a lot of gender needs that have often been left out in budget allocations, but this time I will encourage women to attend these consultations and be very vocal about their needs. If women do not attend these important meetings, decisions are made on their behalf. Women are the most affected by poor service delivery, hence their participation is important," she said. Pasira also urged women to approach every office in the local authority without fear whenever there are issues such as unattended sewage pipe bursts and poor refuse collection, which have been a great challenge in the mining town. Women's representation in Zvishavane Town Council has also been increasing as currently there are eight females out of the 13 total councillors, although three were elected through proportional representation. "Indeed, women's representation in our council has been increasing over the years and at this rate it is possible to have an all-female council in the coming terms. This is a reflection of the mobilisation efforts we have been doing trying to encourage women to occupy leadership spaces. When women are in positions of authority, they always push for positive development because of their caregiving nature," Pasira said. Gender-responsive budgeting crucial: Zvishavane Town Council vice-chair Zvishavane Town Council vice-chairperson Itai Pasira
Page 24 NewsHawks News Issue 151, 6 October 2023 Legal Insights DONALD MADONDO IN March 2021, Zimbabwe woke up to Vice-President Kembo Mohadi’s resignation. He was to remain in the political wilderness until recently when he bounced back after elections. Mohadi’s resignation letter was precipitated by allegations of sexual misconduct on his part and directed to a married woman. What surprised Zimbabweans the most was the resignation itself, a rare phenomenon. It does not happen every day that a political figure, a Vice-President no less, resigns because he has been rocked by a sex scandal. In his resignation letter, the Vice-President stated that he was quitting “not as a matter of cowardice, but out of respect for his office so that it is not compromised or caricatured by actions that are linked to his challenges as an individual.” What a rare feat it was to have a public official for once taking responsibility and doing the right thing, albeit making feeble protests of being “a victim of information distortion, voice cloning, and sponsored spooking and political sabotage”. The resignation was supposed to be a starting point to a series of quitting for the unsaid sexual sins committed behind the walls of both private and public institutions. However, the resignation was to be reversed two years later. Mohadi is back in office now. No questions asked, no inquiry done, no explanations, it is now all water under the bridge and business as usual; we move on to the next scandal as a country. That seems to be our modus operandi, particularly given President Emmerson Mnangagwa and co-Vice-President Constantino Chiwenga’s own skeletons in the cupboards. Mnangagwa and Chiwenga were in no better position to seriously judge Mohadi. Indeed, away from politicians, the next sexual scandal did not take time to hit the headlines. It was mentorship on an extended level. In audio recordings leaked last week, Robson Mhandu, Zimbabwe Broadcasting Corporation director of radio services, is caught red-handed trying to mentor a junior employee by first marshalling her straight into the bedroom. A few days later, three of Mhandu’s ZBC colleagues are also facing the same accusations. Mhandu was aggressive and unforgiving in his predatory advances to the junior staffer as he ferociously tells her that, like his totem Shumba (lion), he will maul or devour her; and rejection would come with consequences. The demand was aggressive and the symbolism violent. The junior, Farai Juliet Magada, wanted to be transferred from Bulawayo to Harare, but Mhandu would not okay it and sign papers without getting sex as a reward. He was brazen about it. He sounded gayly entitled and demanded it with impunity. Apparently he has been doing it for a long time and getting away with murder, hence to him it is the “practical reality of life”. It is a tragedy. The good thing though is that Magada got Mhandu caught and he will now be held accountable for behaving like a bull in a China shop. Yet Mhandu is not the only one in media doing that horrendous stuff. Some of his ZBC colleagues are also in hot soup over similar sexual misdemeanours. There are also well-known cases of sexual harassment at some mainstream media houses which have been swept under the carpet. Those cases must be investigated. Sexual harassment includes unwelcome sexual advances, requests for sexual favours, and other verbal or physical harassment of a sexual nature in the workplace or learning environment. This is rampant in different spheres of life and workplaces. It is a power relations issue. Previous reports have shown that sexual harassment is rife in the media, preventing women journalists from realising their potential and sometimes forcing them to quit. This calls for greater commitment by media institutions to address the problem in the newsrooms and training institutions. Women journalists have been forced out of newsrooms and journalism training schools as a result of being sexually harassed and even abused. Invariably, perpetrators of the recorded sexual violence are mainly those in positions of authority or influence such as managers, editors and desk editors. The Mhandu saga is yet another entry into the journal of the everyday untold stories that women are subjected to in the workplace as they are hunted by the male species with an insatiable appetite to “maul” or “devour” them. Some men view themselves as predators hunting prey, as Mhandu’s perverted mindset clearly showed. History is replete with men who have used their perceived social power to harass and subjugate those in weaker positions. Sex is then used to complete the subjugation and harassment. It is about power and conquest for the predators. This is a feature that is common both in the private and public space. When one perceives themselves to be in a position of power, the abuse of that power most often than not tends to result in sexual harassment. However, because of the way our society has viewed and deified sex, as well as views perceived power, most of the incidents which are criminal in nature go unchallenged. Victims of abuse remain silent for the fear of being labelled and have tags attached to them – stigmatised. It has become a cancer that has slowly consumed our society. Perpetrators get appointed, while victims are disappointed. But what is sexual harassment in terms of the law? Section 8 (h) of the Labour Act [Chapter 28:01} provides that, it is an unfair labour practice by an employer or any other person, by an act or omission, if he or she engages in unwelcome sexually-determined behaviour towards any employee, whether verbal or otherwise, such as making physical contact or advances, sexually colours remarks, or displaying pornographic materials in the workplace. The Public Service Commission Sexual Harassment Policy 2022 has a broader definition of sexual harassment. It provides that sexual harassment in relation to an employer or any member means any act where an employer or member (a) demands from any employee or prospective employee any sexual favour as a condition of – (i) recruitment for employment or (ii) the creation, classification or abolition of jobs or posts; or (iii) the improvement of the remuneration or other conditions of employment of the employee; or (iv) the choice of persons for jobs or posts, training, advancement, apprenticeships, transfer, promotion or retrenchment; or (v) the provision of facilities related to or connected with employment; or (vi) any other matter related to employment; or (b) engages in unwelcome sexually-determined behaviour towards any employee or client, whether verbal or otherwise, such as making physical contact or advances. This definition is wide and it encompasses some aspects that border on the criminality of harassment. While sexual harassment knows no gender, one can take judicial notice that in this teapot-shaped country the victims are mostly female and the perpetrators are male. Instead of sex being for procreation and pleasure, when abused it becomes a weapon of mass destruction. While those with perceived power weaponise sex, the law provides a weapon cast in statutes and policies to whip those of a disposition set to forcefully drink from wells they have no access into line. Part III of the Criminal Law (Codification and Reform) Act provides for sexual crimes and crimes against morality. One can report predators of sexual offences and, depending on the incident and nature of violations, the Zimbabwe Republic Police must arrest perpetrators. Day in and day out, our courts adjudicate on sexual complaints. Part of the population in our prisons constitutes those who decided not to exercise temperance with their hormones. Victims of sexual harassment can either report the crimes to the police and, if violated within the workplace, a labour practice that is fair would have been violated and action must be taken that leads to suspension or dismissal as the circumstances of the case would dictate. In legal parlance, they are both criminal and civil remedies can be pursued where violations are committed. However, one wonders whether these remedies are effective, considering how sexual harassment issues have been dealt with in the past. Our history has shown that it takes less than two years for a whole Vice-President to be re-appointed after a sexual scandal unfolds. As my learned late brother Alex Magaisa would always say, no matter how brilliant our constitution reads, it takes political will to change the discourse of a people. We may have policies in our workplaces and laws, but it shall take the political will of our leaders to change the discourse insofar as sexual harassment is concerned. As long as we see it fit to release some convicted Bobby Makaza characters to sing Huchi praises for us at the expense of our young girls and women, we shall continue to suffer the scourge of mentorship into bedrooms instead of boardrooms. Until we self-introspect as a people and take collective action, our women remain vulnerable to Mhandu-style mentoring into bedrooms with reckless abandon and impunity. *About the writer: Donald Madondo is a pseudonym of a local lawyer who will be regularly contributing to this new legal column, which is also open to other writers. Suspended ZBC director Robson Mhandu Radio auditions in the bedroom
NewsHawks Page 25 Issue 151, 6 October 2023 International Investigative Stories A PAIR of Chinese scam artists wanted to turn a radiation-soaked Pacific atoll into a future metropolis. They ended up in an American jail instead. How they got there is an untold tale of international bribery and grifting that stretched to the very center of the United Nations. The stakes could scarcely have been higher for Hilda Heine, the former president of the Marshall Islands. For years, her remote archipelago nation of just 40,000 people was best known to the world — if known at all — for Cold War nuclear testing that left scores of its islands poisoned. Sitting in the center of the Pacific Ocean, the country was a strategic but forgotten U.S. ally. But the arrival of a couple of mysterious strangers threatened to change all that. With buckets of cash at their disposal, the Chinese pair, Cary Yan and Gina Zhou, had grand plans that could have thrust the Marshall Islands into the growing rivalry between China and the West and perhaps fracture the country itself. First proposed in 2017, while Heine was still president, Yan and Zhou’s idea raised public controversy. With backing from foreign investors, the couple planned to rehabilitate one irradiated atoll, Rongelap, and turn it into a futuristic “digital special administrative region.” The new city of artificial islands would include an aviation logistics center, wellness resorts, a gaming and entertainment zone, and foreign embassies. Thanks in part to the liberal payment of bribes, Yan and Zhou had managed to gain the support of some of the Marshall Islands’ most powerful politicians. They then lobbied for a draft bill that would have given the proposed zone, known as the Rongelap Atoll Special Administrative Region (RASAR), its own separate courts and immigration laws. Heine was opposed. The whole thing reeked of a Chinese effort to gain influence over the strategically located Marshall Islands, she told OCCRP. The plan was unconstitutional and would have created a virtually “independent country” within the Marshall Islands’ borders, she said. The new Chinese investor-backed zone would also have occupied a geographically sensitive spot just 200 kilometers of open water away from Kwajalein Atoll, where the U.S. Army runs facilities that test intercontinental ballistic missiles and track foreign rocket launches. But when President Heine argued against the draft law, she became a target herself. In November 2018, proRASAR politicians backed by Yan and Zhou pushed a no-confidence motion to remove her from power. She survived by one vote. Even then, the president said she had no idea who this influential duo really were. Although they seemed to be Chinese, they carried Marshall Islands passports, which gave them visa free access to the United States. Nobody seemed to know how they had obtained them. “We looked and looked and we couldn’t find when and how they got International InvestigativeStories Chinese ‘miracle water’ grifters infiltrated UN, bribed politicians to build pacific dream city
Page 26 International Investigative Stories NewsHawks Issue 151, 6 October 2023 [the passports],” Heine said. “We didn’t know what their connections were or if they had any connections with the Chinese government. But of course we were suspicious.” The plan came to an abrupt end in November 2020, when Yan and Zhou were arrested in Thailand on a U.S. warrant. After being extradited to face trial in New York, they pleaded guilty to a single count of conspiracy to bribe Marshallese officials. Both were sentenced earlier this year. Zhou was deported to the Marshall Islands shortly after her sentencing, while Yan is due for release this November. But although the federal case led to a brief burst of media attention, it left key questions unanswered. Who really were Yan and Zhou? Who helped them in their audacious scheme? Were they simply crooks? Or were they also working to advance the interests of the Chinese government? OCCRP spent nearly a year trying to find answers, conducting interviews around the world and poring through thousands of pages of documents. What reporters uncovered was a story more bizarre — and with far broader implications — than first expected. As it turns out, Yan and Zhou were able to carry out their plans thanks to an earlier, successful ploy to buy high-level influence at the United Nations in New York. In just a couple of years, the pair went from hawking scam miracle water to rubbing shoulders with world leaders and diplomatic grandees in Manhattan. They gained access to the U.N. after paying over $1 million to diplomats and fixers. Among those who helped them were staff of the former president of the U.N. General Assembly, an alleged Chinese agent, and a disgraced ambassador then already under investigation by the FBI in a separate case. The couple also hijacked a charity affiliated with the United Nations and turned it into a base for Chinese businesspeople and scammers who wanted to appear associated with the global body. Ensconced in a flashy office on Manhattan’s Third Avenue, the duo and their associates met with officials and even heads of state from at least 17 countries. Reporters also found that, by the time their schemes culminated in the Marshall Islands plan, the couple was also openly promoting Chinese interests in the increasingly contested Pacific. Eryn Schornick, a Washington, DCbased transnational financial crime expert, said Yan and Zhou are part of what appears to be a growing trend of Chinese criminals and scammers who seek to associate themselves with the U.N. and the NGOs that surround it. On one level, these figures attempt to use the body’s legitimacy to promote themselves and their business ventures, she said. But they are often backed by a range of other powerful interests, including those with apparent links to the Chinese state and organized crime. “Some of those fronting these types of schemes are bumbling fraudsters, but behind them are all types of powerful people and institutions who are benefitting from their connections,” Schornick said. Yan and Zhou did not respond to reporters’ questions. ‘A Good Man’ As Yan stood for sentencing at a U.S. federal courthouse in mid-May, his defense team attempted to paint the portly, fifty-something convict in a sympathetic light. Born into a poor family in China’s eastern Anhui province, Yan had been given up as a baby to a family of beggars, his lawyers told the Southern District Court of New York. A harsh winter killed both Yan’s adoptive parents when he was 10, forcing him to scrounge out a life on the streets before he finally returned to his biological family. Later proving himself a gifted student, he began a successful career as a business consultant with an interest in international philanthropy. Yan’s lawyers described his Marshall Islands bribery scheme as a slip-up in an otherwise spotless life. “For Cary, charity and giving back is a deeply felt obligation. It’s a fundamental part of who he is,” said one of his lawyers, Jonathan Bolz. But there was a lot about Yan’s background — including a history of fraud back in China — that went unmentioned by either side during his trial. (Prosecutors at the Southern District of New York turned down OCCRP’s requests for comment). Reporters found that Yan’s journey to the U.S. courtroom began in China a decade earlier, with a business based on the sale of a purported miracle water cure that a Chinese court later found to be fraudulent. Marketing material from Yan’s company describes the story as starting at a potassium salt mine owned by his family in China’s central Hubei province. As the story goes, a mishap one day in 2011 unleashed torrents of hot, briny water from the depths of the earth into the surrounding fields. After a local cowherd was supposedly cured of lupus after floating in the floodwaters, Yan and his brother began selling the liquid as a healing medicine under names including SSG Mineral Water and Genesis Life Raw Water. But this $150-a-bottle miracle water was in fact a multi-level marketing scam. Promising investors that they could resell the water for a profit, the brothers defrauded nearly 20,000 victims out of more than $18 million, the Chinese court eventually found. Yan’s brother was arrested in 2020 and sentenced to seven years in prison for his role in the scheme. Yan, however, had already moved abroad and beyond the reach of Chinese law enforcement. His American journey had begun at least six years earlier in the home of all things New Age: California. ‘Abusing the NASA Name’ Yan arrived in Silicon Valley looking to hype the product internationally. There, he met Zhou, who had first come to the U.S. as a student and was employed at a company working on a quixotic bid to build high-speed rail in the state. The pair soon struck up a romance, according to former colleagues who worked with them in the U.S. Elegant and more than a decade Yan’s junior, Zhou also spoke fluent English. She soon became her partner’s international right hand. In April 2014, the couple opened a spa in a strip mall in Santa Clara. Known as Immortal Float Center, the facility’s centerpiece was a treatment that combined Yan’s Chinese miracle water with spells inside a sensory deprivation tank dubbed the Immortal Digital Life Cube. The resulting effect was marketed as being “like the amniotic fluid of the uterus, flowing around the human body and regulating… its organs and systems.” But Yan was ambitious, and a suburban business next to a coin-operated laundry was not enough. To give his healing water more cachet, Yan sought to attach it to NASA, with its world-renowned scientific credentials. He did this with the help of Wing Kan Nip, a Malaysia-born entrepreneur who worked on the same rail project as Zhou. Nip shared documents and recollections of his time with the couple after being contacted by reporters. At the time, Nip had his own alternative medical business at a rented space at the NASA Ames Research Center in nearby Mountain View. Its centerpiece was a device called a “quantum resonance spectrometer,” which purported to measure “frequencies” given off by people or materials. Nip said Yan asked him to use his device to test the water, and issue a report explaining its miraculous properties. Marketing materials obtained by reporters show that the NASA brand soon became key to selling the bogus product. Bottles of the water also carried labeling that implied they were manufactured at the NASA research park. Nip said he had noticed that Yan and Zhou were “abusing the NASA name” not only in the U.S., but also in China, where he told investors that his product had been endorsed by the space agency. “I think his direction was trying to sell this product at a very high price, like a pyramid scheme,” Nip said. Nonetheless, he stuck with Yan and Zhou for another three years until they finally had a falling out. NASA officials confirmed the use of the NASA logo for commercial products is a trademark violation, and said that they had been unaware of the unauthorized use. “NASA has no relationships with SSG Mineral Life Water in any capacity. NASA has not authorized the use of NASA logo, name, or emblem in any manner,” the agency said in an emailed response to questions. ‘An Incredible Amount of Fraud’ Yan and Zhou soon set their sights on building connections at the United Nations. In early 2015, Nip was tasked with making this happen, he told OCCRP. His first point of contact was a New York-based businessman, Fan “Frank” Liu. Nowadays, Liu is under indictment in New York’s Eastern District for allegedly working on behalf of China’s Ministry of State Security to harass dissidents in the United States. But back in 2015, he was simply known as a Chinese community leader and charity operator who, according to media coverage from the time, was a fixture on the diplomatic cocktail circuit that surrounds the U.N.’s Manhattan headquarters. Liu did not respond to questions from OCCRP. Emails shared by Nip with reporters show that Liu and a close business associate, Jeanmarie Nicole Edwards, helped get Yan access to U.N. events and officials. Yan was even able to get photos taken of himself alongside Ban Ki-moon, the U.N. Secretary General at the time, in return for payment. This effort was only the first of a series of photo-ops with U.N. grandees that Yan arranged with the help of paid fixers in an effort to raise his stature. According to emails from Nip, the Ban photos were made possible thanks to an introduction Liu and Edwards provided with the office of the president of the U.N. General Assembly, a position then held by controversial Ugandan politician Sam Kutesa. Based on this introduction, Yan and Zhou’s associate Nip traveled to San Francisco to meet Kutesa’s spokesman Jean-Victor Nkolo in mid-2015, the emails show. The spokesman promised Nip he could broker a meeting with his boss and other U.N. figures for hundreds of thousands of dollars in payments, according to an email Nip sent to Zhou soon afterwards. After agreeing to the deal, Yan, Zhou, and an entourage traveled to New York. On June 29, 2015, they had a meeting and lunch with Kutesa during a high-level U.N. meeting on climate change. The following day, Kutesa’s staffers helped Yan get a rushed series of photos with Ban on the sidelines of an art event in which the bemused-looking former secretary-general can be seen holding a box of Yan and Zhou’s miracle water. Kutesa’s spokesman, Nkolo, appeared to be proud of his work. “Absolutely remarkable,” Nkolo wrote soon afterwards in an email with the photos attached. “That’s why one always need[s] a top professional photographer to beautifully capture memorable moments that should not be missed. Priceless.” In response to questions from OCCary Yan at his desk in New York.
NewsHawks International Investigative Stories Page 27 Issue 151, 6 October 2023 CRP, the U.N. Secretary-General’s spokesman, Stephane Dujarric, said that his office had become aware of Yan and Zhou’s activities during the course of a broader internal investigation, the contents of which he did not share with reporters. He confirmed the probe found that Yan and Zhou had indeed paid for their mid-2015 U.N. meetings, but that “none of these payments came through United Nations accounts.” The U.N. investigation found that Yan and Zhou used proxies to send at least $150,000 from China disguised as “tuition fees” into a “shadow account” account run by Ugandan diplomats, Dujarric said. Nkolo resigned from the U.N. before the probe was concluded, he added. Former Secretary General Ban “had no knowledge whatsoever of Mr. Nkolo’s activities,” and did not know that someone had paid to have a photo taken with him, Dujarric said. He added that Ban had since appointed a task force “to promote transparency and accountability in the functioning of the President of the General Assembly.” A report on its findings was presented to the assembly in March 2016. The associate of Liu who helped broker the deal, Edwards, told OCCRP that Liu received money as part of the arrangement but said she did not know how much. She said she was never involved in anything “illegal” during her work for Liu, which she described as consultancy. Nkolo and Kutesa did not respond to reporters’ questions. The incident comes as no surprise to Michael Jacobson, chairman of the Montessori Model U.N., a New Yorkbased non-profit that teaches students about global conflict resolution. Jacobson hosted Yan and his retinue at one Model U.N. conference and accepted a donation from the Chinese businessman. He later regretted it, he told OCCRP. In an interview, Jacobson described seeing a steady stream of questionable Chinese businessmen who wanted photos and other proof of their closeness to the U.N. The global body’s headquarters is a “watering hole for an incredible amount of fraud,” he said. “The Chinese refer to the General Assembly as the ‘Golden Hall’,” he said. “If you’re photographed at the U.N. … you’re perceived to be a step above the average Chinese businessman.” Jacobson failed to do his own due diligence on Yan and his associates, he said, because they were introduced to him by a trusted middleman, who would soon — thanks to another case — become a public face of U.N. corruption. That man was Francis Lorenzo, an ambassador from the Dominican Republic to the U.N. ‘What the Heck is Going on Here?’ Yan and Zhou first engaged Lorenzo in mid-2015, according to internal emails and interviews with people familiar with the arrangement. They quickly came to rely on the Dominican’s network to achieve ever greater levels of U.N. access. But in October 2015, within months of getting into business with the Chinese couple, Lorenzo was charged as part of a separate high-level U.S. probe. The scheme, described in media at the time as the U.N.’s worst financial scandal in decades, involved over $1.3 million in bribes paid by a Macau casino billionaire to Kutesa’s predecessor as General Assembly president, Antigua’s John W. Ashe. Lorenzo eventually pleaded guilty to bribery and money laundering, but did not serve a prison sentence. Despite being caught up in a very public corruption case, he remained an influential figure who was able to shepherd Yan and Zhou through the U.N., reporters found. This was possible in part because he was well-liked in the diplomatic community, explained Carlos Garcia, a former El Salvadoran permanent representative to the U.N., who worked for Lorenzo in his dealings with Yan and Zhou. “He made a mistake, obviously,” Garcia said, summing up the attitude of many in the U.N. “But that doesn’t mean that he’s not a human being, a good person, too.” Lorenzo was still able to freely walk the halls of the institution at that time, and only lost his U.N. ID several years later, when it expired in August 2018, U.N. spokesman Dujarric confirmed in response to reporters’ questions. Meanwhile, interviews and documents show that Lorenzo’s help to Yan and Zhou at the U.N. was facilitated by repurposing the same pay-for-play network he had used in the previous scheme to bribe Ashe. This included a staff of at least three employees who worked on tasks like web administration and event management. Among the services he delivered was at least one more photo-op for Yan with Secretary-General Ban. But what Yan and Zhou really wanted was a more formal association with the U.N., according to interviews and emails obtained by reporters. To this end, they planned to create a non-profit organization that would then join the U.N.’s Economic and Social Council (ECOSOC), one of the global body’s six main organs. Emails from Yan and Zhou’s network show the group discussed giving the Dominican diplomat a $300,000 “initial fund” to set up a non-profit group. That proved more challenging than expected, because registering an “intergovernmental organization” required support from at least three governments, said Garcia, Lorenzo’s employee at the time. It could also take years for any new organization to get ECOSOC accreditation, he added. So Lorenzo hit on an ingenious solution. They would simply take over an NGO that had already been given the green light. That’s when he approached Monica Westin, the Swedish-born founder of World of Hope International. This New York-based charity — which had ECOSOC accreditation — had long funded educational programs in West Africa. Westin, by then in her 70s, was worried about the organization’s future. “[Lorenzo] contacted me and he said, ‘I have a very good opportunity for you… I want you to change your [charity’s] name,’” she recalled. “And then you will get all the help you will need for your organization in Ghana. You’re getting old. And if something happens to you, you will be taken care of.’” At Lorenzo’s urging, Westin said she signed a memorandum of understanding that essentially turned over the organization to Yan. The charity was renamed the World Organization of Governance and Competitiveness (WOGC), complete with a logo that evoked the U.N. brand. U.S. prosecutors would later reveal that Yan had paid Lorenzo $1 million to facilitate the takeover. Westin, however, said she received less than $10,000 of that amount. Through a lawyer, Lorenzo declined to respond to questions for this story. With a growing staff, WOGC set up its headquarters in a glass-walled office tower in Midtown Manhattan, a short walk from the U.N. building. The organization billed itself as a charity geared towards achieving the U.N.’s Sustainable Development Goals. Its buzzword-heavy website featured pledges to reduce poverty by promoting public-private partnerships. A procession of politicians, staffers, and U.N. diplomats from countries all over the world, including Mauritania, Maldives, El Salvador, and Bangladesh, came by the office. A typical visit involved formal-looking meetings around a conference table with views of the Midtown skyline, and group photoshoots in front of a flag-festooned wall, according to a cache of internal photos obtained by reporters. One delegation, from the U.N. mission for Sierra Leone, was gifted an oversized check for $50,000 during one 2017 visit in order to help the country recover from flooding. (The mission did not respond to questions.) Despite its grandeur, some visitors found the office and its inhabitants deeply strange. Christian Batres, a web developer who built sites for Lorenzo’s Chinese clients, said something seemed off with the organization and its leader, Yan. “I actually went through a few meetings where I realized, you know, like, the guy took off his shoes and started picking his toes,” Batres said. ‘And I was just like, you know, this is a meeting with ministers. And the whole table was like, ‘What the heck is going on here?’” ‘Lots of Gold’ The ECOSOC accreditation obtained by Yan and Zhou’s organization allowed it to organize a succession of U.N. events, starting with a glitzy launch in September 2016 during the meeting of the 71st Session of the General Assembly. Bangladeshi Prime Minister Sheikh Hasina was the keynote speaker, and actor-cum-crooner Robert Davi was the main entertainment. (Bangladesh’s U.N. mission and Davi did not respond to questions.) A pattern was soon set. With Lorenzo’s extensive contact book, WOGC reached out to cashstrapped diplomatic missions from small and underdeveloped states to sponsor a series of events at the U.N., Garcia said. Yan and a procession of Chinese backers would cover the costs, using the meetings to collect even more photos and videos of themselves in the body’s rarefied settings. Two former WOGC employees, who asked to remain anonymous over security concerns, said Yan solicited payments from other Chinese businessmen so that they could also appear to have U.N. backing. The whole scheme was “some dirty businessmen doing dirty business in China,” said one former employee involved with WOGC’s operations in New York. “They told Chinese people to lend money to them because ‘I’m from the United Nations,’” the former employee said. Once he was in the door, Yan used his U.N. foothold to promote a new range of schemes, including at least three separate cryptocurrency scams that Chinese authorities would later find defrauded investors of at least $130 million. To do this, Yan and Zhou established at least two other organizations that they falsely claimed to be linked to the U.N. Along with a now-convicted Chinese fraudster named Charles Lu and his entourage, they used their three organizations to help market their digital assets as safe investments. Under the auspices of WOGC and one of the newer fraudulent organizations, Yan’s network convinced Suriname’s U.N. mission to host a “high-level meeting” on “Sustainable Tourism, Trade and Global Digital Assets” in the General Assembly hall on January 17, 2017. A video of the event, which remains online on a U.N. website, shows Lu and other Chinese associates delivering speeches through live translators about the transformative power of blockchain technology, alongside Lorenzo’s employee, Garcia. The event started with an extra bit of trickery: a supposed video address from U.N. Secretary General Antonio Guterres. In fact, Guterres was not speaking to participants at all –– the organizers had simply downloaded a previously-recorded video clip. “The organizers used a generic, publicly available New Year’s Message from the Secretary-General without our prior knowledge,” said Dujarric, the U.N. spokesman. Suriname’s U.N. mission did not respond to questions. Documents and photos obtained by OCCRP show Yan and Zhou coupled their New York-based activities with A bottle of Yan and Zhou’s miracle water, including labeling suggesting it was 'manufactured' at NASA’s Ames Research Center.
Page 28 NewsHawks Issue 151, 6 October 2023 travel to destinations in Latin America, Asia, the Caribbean, and the Pacific Islands. The group sometimes impressed visitors with a visit to their New York office before follow-up meetings were held abroad. “I remember gold, lots of gold,” said Tessie Lambourne, the leader of the opposition in the Pacific nation of Kiribati, who visited the office in September 2017 when she was still in the country’s cabinet. Two months later, Yan, Zhou and their entourage were in Kiribati, where they were warmly greeted by President Taneti Maamau and ministers. WOGC donated $10,000 for an event to promote locally-made clothing, Lambourne said. They walked away having secured i-Kiribati financial licenses for four companies whose names hinted at greater ambitions: World Digital Central Bank, World Digital Stock Exchange, World Digital Lottery Group, and World Digital Finance International Holding Group. It was all part of the set-up for the plan to build the special economic zone in the Marshall Islands. ‘A Big Red Flag’ Arriving in the country’s capital of Majuro in 2017, the pair found a country where resentment still festers over the legacy of the United States’ nuclear testing. Rongelap Atoll, the proposed site of their economic zone, was poisoned in a particularly notorious test, known as Castle Bravo, in 1954. The detonation of the first deliverable hydrogen bomb on the neighboring Bikini Atoll was supposed to produce an explosion equivalent to five or six million tons of TNT. But scientists miscalculated, and the bomb ended up being roughly 1,000 more times more powerful than the weapon that destroyed Hiroshima. As radioactive ash fell onto Rongelap, some curious villagers played with and even ate the strange, snow-like substance. The special economic zone was billed as a way to finally clean up the radiation and enable the return of the thousands of displaced Rongelapese. Kenneth Kedi, the speaker of Marshall Islands’ parliament, told OCCRP that he supported the plan because he believed the United States had not done enough to fix the damage. The Chinese visitors’ proposals seemed outlandish, but he was reassured because they seemed to have the U.N.’s blessing, he said. “That was enough for me to say, ‘Wow, good, bring them over,’” Kedi said. “They must be a very good organization to be registered with the United Nations.” By 2018, however, Kedi started seeing signs that Yan and Zhou were pushing a pro-Chinese geopolitical agenda. His first awakening came when he was flown to Hong Kong in April 2018 for a “preparatory launch meeting” for RASAR. Held in the city’s AsiaWorld-Expo convention center, the event was preceded by a Chinese-language publicity blitz that included a glossy cover story in an official Communist Party-run magazine, Top China. With a bilingual cast of female presenters and dazzling on-screen graphics, the meeting featured special guests from the Marshall Islands, Vanuatu, El Salvador, and Honduras. Also in attendance were many of the Chinese crypto scammers who had been involved in Yan and Zhou’s activities at the UN. Kedi said he was taken aback when he was handed the text of a speech to deliver at the event, which appeared to back Beijing’s claim that it was the sole legal government for all of China including Taiwan. The Marshall Islands is one of just over a dozen countries worldwide that diplomatically recognizes Taiwan, and Kedi said he refused to contradict that. “They wanted me to talk about the ‘One China’ policy,” he said. “That was a big red flag right there.” Kedi said he further soured the following year, when Zhou asked him to put his name on a letter, addressed to China’s foreign ministry, reassuring them that the autonomous zone was going ahead. Endgame Westin, the founder of the New York charity Yan and Zhou had taken over, was at the center of the case that brought down the pair’s entire operation. Westin said she was approached by the FBI in April 2019 and shared evidence that Lorenzo had helped Yan and Zhou take over her charity. Federal agents were able to build their case under the Foreign Corrupt Practices Act because they found evidence that the U.S.-based charity was used to facilitate the bribery of Marshallese officials. “It’s no justice, because I could not raise any funds in the U.S. and my name was smeared because of this,” she said. The takeover finished off much of her charity’s work with children and communities in West Africa and left her with a smaller, financially strapped organization. Among the questions from reporters that federal prosecutors declined to answer was whether they had pursued a wider investigation into Yan and Zhou network’s activities at the UN. There are loose ends to the case in the Marshall Islands too. The U.S. government has not publicized the identities of most of the local officials who were offered bribes, although court filings make it clear they included about half a dozen members of parliament and other senior officials. The State Department declined to comment. And even though the Marshall Islands government says it does not know exactly how Yan and Zhou got their citizenship in the first place, the pair likely have nowhere else to go. While Yan will remain in U.S. federal prison until near the end of this year, Zhou has already been released and deported to the Marshall Islands. She arrived in the capital, Majuro, on April 20 on a United Airlines flight wearing a bright red tracksuit, escorted off the plane by what appeared to be U.S. officials. Heine, the former Marshall Islands president, said she is worried about what Yan and Zhou may do next in her lightly populated Pacific nation. “They can get into politics, because they’re citizens of the Marshall Islands,” said Heine. “If they bring the money to buy elections and get selected people in power, they can easily sway or direct the government the way they want. So that’s scary to me.” — Organized Crime and Corruption Reporting Project. Yan smiles while former U.N. Secretary General Ban Ki-moon (center) holds a box of his miracle water and former General Assembly President Sam Kutesa (right) looks on. Zhou exits her plane in Majuro, Marshall Islands, after being deported from the United States. International Investigative Stories
Page 29 The NewsHawks is published on different content platforms by the NewsHawks Digital Media which is owned by Centre for Public Interest Journalism No. 100 Nelson Mandela Avenue Beverly Court, 6th floor Harare, Zimbabwe Trustees/Directors: Beatrice Mtetwa, Raphael Khumalo, Professor Wallace Chuma, Teldah Mawarire, Doug Coltart EDITORIAL STAFF: Managing Editor: Dumisani Muleya Assistant Editor: Brezh Malaba News Editor: Owen Gagare Digital Editor: Bernard Mpofu Reporters: Brenna Matendere, Ruvimbo Muchenje, Enock Muchinjo, Jonathan Mbiriyamveka, Nathan Guma Email: [email protected] SUB EDITORS: Mollen Chamisa, Gumisai Nyoni Business Development Officer: Nyasha Kahondo Cell: +263 71 937 1739 [email protected] Subscriptions & Distribution: +263 71 937 1739 Reaffirming the fundamental importance of freedom of expression and media freedom as the cornerstone of democracy and as a means of upholding human rights and liberties in the constitution; our mission is to hold power in its various forms and manifestations to account by exposing abuse of power and office, betrayals of public trust and corruption to ensure good governance and accountability in the public interest. CARTOON Voluntary Media Council of Zimbabwe The NewsHawks newspaper subscribes to the Code of Conduct that promotes truthful, accurate, fair and balanced news reporting. If we do not meet these standards, register your complaint with the Voluntary Media Council of Zimbabwe at No.: 34, Colenbrander Rd, Milton Park, Harare. Telephone: 024-2778096 or 024-2778006, 24Hr Complaints Line: 0772 125 659 Email: [email protected] or [email protected] WhatsApp: 0772 125 658, Twitter: @vmcz Website: www.vmcz.co.zw, Facebook: vmcz Zimbabwe Will appeasement diplomacy work? Dumisani Muleya Hawk Eye Editorial & Opinion NOTHING illustrates Emmerson Mnangagwa’s penchant for cru- elty more vividly than Job Sikhala's heart-rending case. Sikhala, Zimbabwe's foremost political prisoner, has been in pre-trial detention for 480 days. His continued incarceration is a scar on the conscience of every self-respecting citizen. A fearless and outspoken politician, Sikhala has always been on the radar of the Zanu PF regime since his days in robust student activism. In university, his peers nicknamed him "Wiwa" after the legend- ary Nigerian environmental activist, Ken Saro-Wiwa. It will be remembered that the courageous Saro-Wiwa died through execution by hanging following trumped-up charges. He paid the ultimate price for demanding social justice for his down- trodden community. In a grotesque twist of fate, Sikhala, like Saro-Wiwa, is on the receiving end of injustices perpetrated by Harare's ruthless author- itarian regime. Mnangagwa’s government has unjustly jailed Sikhala in a sinister move calculated at sending one chilling message to the people of Zimbabwe: If you oppose the Zanu PF government, we will crush you and nobody will come to your rescue. This way, the brutal authoritarian kleptocracy is hoping to sup- press political opposition and maintain its iron-clad grip on power. By targeting and imprisoning dissenters, Zimbabwe's rulers are in- tent on quelling any challenge to their authority. Sikhala's plight has had a chilling effect on free speech, because opposition politicians are cowed into silence, journalists are intim- idated and human rights defenders are shackled. In this Orwellian landscape where big brother is always ready to swing a sledgeham- mer against the perceived enemies of Zanu PF rulers, public dis- course is hampered and democratic processes are subverted. Sikhala's continued detention has brought untold suffering on his family. His young children need the financial support and moral guidance of their father, and his wife is struggling to shoulder the burden. We have seen the likes of Bulawayo mayor David Coltart step- ping up to the plate to assist in forming a family trust through which some assistance has been channelled to the Sikhalas. Such gestures are commendable. However, not much has been done to thwart the Zanu PF re- gime's evil plot to deprive the Sikhala family of a livelihood. This is unacceptable and every Zimbabwean must introspect. Supporting the Sikhala family is not the sole responsibility of the opposition Citizens' Coalition for Change — although it must be said, of course, that his comrades in the opposition trenches have simply not done enough to show pragmatic solidarity in that regard. An entire election campaign came and went without the opposition taking any serious practical action on the Sikhala crisis. The time has now come for Zimbabweans — regardless of polit- ical affiliation, religious persuasion or ideological orientation — to show solidarity to Sikhala and his long-suffering family. Amnesty International recently cited the Sikhala case as one of the main examples of President Mnangagwa’s failure to make a clean break with the Robert Mugabe era of atrocious human rights vio- lations. To end Sikhala's continued incarceration, the citizens of this country must launch local and international campaigns. Civil society organisations should be raising awareness about the grave human rights situation. This can involve conducting cam- paigns, lobbying for policy changes, and working to mobilise public support. Neighbouring countries and regional bodies should be putting pressure on the Zimbabwean government to restore the indepen- dence of public institutions. It is wrong and scandalous for the courts of law to repeatedly deny Sikhala bail as if he has ever been convicted of any crime. Strengthening the legal system, ensuring fair trials, and safe- guarding due process are crucial for upholding civil liberties. Our judiciary has been a massive disappointment. In the hands of corrupt, cruel and uncaring Zanu PF overlords, the law has been hijacked and perverted into an instrument of na- ked oppression. Nations are not built that way. We betrayed Job Sikhala NewsHawks Issue 151, 6 October 2023
New Perspectives BANKS are struggling not only in Zimbabwe but all over Africa. Structural weaknesses in the banking sector have enabled alternative payment service providers to steal a march across Africa. There is a rapid rise in alternative payment and money transfer platforms as bank-led payments initiatives have had mixed success in Africa. One of the most ambitious schemes is the Pan-African Payment and Settlement System or PAPSS, designed to enable instant, cross-border payments in local currencies between African markets. But while 41 commercial banks have signed up since the system was launched by the African Export-Import Bank (Afreximbank) and the African Continental Free Trade Area at the beginning of last year, the system only covers nine of the continent's 54 countries. Out of the nine, three are at pilot stage and these are Zimbabwe, Djibouti and Zambia while the six of the West African Monetary Zone, namely Nigeria, the Gambia, Sierra Leone, Liberia, Ghana and Guinea, successfully launched. In August, South African interbank low value real-time digital payments service PayShap revealed that more than 800 000 transactions had been recorded with a settlement value in excess of R660m since its launch in March. More than 300 000 ShapIDs (linked to participating account holders’ banking profiles and removing the need to share bank account details for payment) had been registered by the end of July. The majority of the joint ventures announced since the beginning of 2023 are between fintechs and non-bank financial service companies. For example, payment gateway MFS Africa partnered with Western Union in March to enable individuals and businesses across the continent to receive money from over 200 countries and territories to their mobile wallets. The following month, Access Bank confirmed that it had expanded its AccessAfrica remittance corridors in conjunction with MFS Africa, extending its reach to potentially 400 million mobile wallets and more than 130 banks across over 35 African countries. In July, WorldRemit introduced naira currency remittances for Nigerian customers through bank transfer, airtime top-up and at cash pick-up locations. More than US$20 billion was remitted into Nigeria last year by the nearly 1.5 million Nigerian migrants around the world, making it the eighth largest remittance-receiving country globally. Telecommunications firm Airtel Africa and Mastercard announced in August that the former’s 100 million-plus mobile phone customers would be able to transfer and receive funds internationally within 14 African countries by accessing and connecting to wallets in over 145 markets around the world. The deal made sense, given the high percentage of Mastercard customers who initiate international payments through mobile apps. Entertainment company MultiChoice Group payments platform Rapyd, and private equity firm General Catalyst announced a joint venture early this year aimed at developing an integrated payment platform for Africa. Called Moment, the service (which has not yet gone live) claims it will be the first truly pan-African payments network, collecting and disbursing across more than 40 African countries and enabling real-time payments across more than 20 countries on the continent. Back home, fintech giant EcoCash this year added US giant Remitly to its list of partners which include MoneyGram, MTN Rwanda, Western Union, World Remit, Sasai, Orange Money Botswana, Rocket Remit Australia, Master Remit Australia, Smallworld Financial Services UK, Airtel Uganda, Mama Money, Xoom paypal, Shoprite’s SuperSwift among others. Fintechs have become more reliable and faster payment platform providers. For many businesses in Africa, accounts payable and accounts receivable processes are still managed manually. Reducing the time for collecting payments, reconciling payment data and managing vendors/suppliers is where fintechs have a competitive edge over banks. Anyway, most banks have just become very docile and not innovative in this cutting edge technological era. In Nigeria, MDS Logistics, a leading provider of integrated supply chain solutions, started working with Duplo to address issues created by inefficient expense management, a disruptive innovation. The company struggled to disburse funds for expenses to fleet workers in the field without mixing up their personal accounts with provisional accounts and when reviewing statements at the end of the month it was difficult to tell which expense was correct and which was not. MDS Logistics now has visibility into the expense operations of its stations across the country, improving internal control and accelerating the pace of payments. Many African businesses’ back office operations remain manual. A report on the payments markets of Ghana, Kenya, Nigeria and South Africa published by Duplo in July revealed that only half of the businesses surveyed were using semi-automated payment systems. This shows that there is a huge gap to be covered in the payments space in Africa. Fintechs are leading in the race to cover the space. M-PESA is a good example of applying lessons learned in the consumer payments space to the business market. The M-PESA Super App enables more than 800 000 businesses and organisations to provide an embedded app where customers can access their products and services complete with payment integration and the company is also rolling out a business version of the app. “The number of businesses and organisations that accept payments through our dedicated business payment solution has grown to more than 900 000 from 350 000 just two years ago,” says Sitoyo Lopokoiyit, managing director M-PESA Africa. “Remittances continue to be a key growth area, especially remittances within the African continent.” The popularity of different payment methods varies across the continent. In Kenya for example, mobile money dominates, with 76% of the population owning a mobile money account, according to data from the Communications Authority of Kenya. In Nigeria, bank transfers are the preferred digital payment method. Nigeria ranks sixth among the countries with the most significant volumes of instant payments worldwide, with US$3.7bn in transactions in 2021, according to ACI Worldwide. South Africa is an interesting market where changes in consumer behaviour have driven a shift in payment adoption, especially for online transactions. Despite a high card penetration rate, South Africans are increasingly switching to electronic fund transfer to buy goods and services online due to high levels of card fraud. In Zimbabwe, mobile money is highly preferred but over regulation especially from the central bank due to the country’s unstable monetary environment has curtailed its growth. It is worth noting that many projects in the payment space have attempted to replicate M-PESA over the last decade. Instant credit transfer in an open loop system is the main driver of payments in Africa. Any payment ecosystem player looking to provide solutions in Africa must be aware of this as the current preferred method of payment. A key trend identified is that for interoperable systems managed by central banks in Africa to simplify account-to-account payments or money transfers, both customer-to-customer (C2C) and customer-to-business (C2B). The Association of African Central Banks established a project to connect all existing and future regional instant payment systems on the continent using ISO 20022. The most innovative segment of the African payments market is the digitisation and automation of cross-border and real-time payments. These solutions often leverage advances in messaging standards such as ISO 20022 or smarter routing services to enhance transparency, reduce transaction costs and mitigate the complexities associated with these types of payments. This is not only transforming how businesses conduct transactions but also contributing to the growth of regional and global trade by facilitating smoother interactions between suppliers, distributors and other business partners. What is needed now is strong collaboration between banks and fintechs in the merchant acquiring and payment infrastructure markets which is indeed on the rise. Banks possess the customer base and distribution networks that can help them thrive in the payments industry, but on the payments arena they are often faced with challenges due to their size, regulation and speed of adaptation. This trend has been further driven by the rapid growth of mobile and digital technology adoption across the continent and the need to cater to the unbanked and underbanked populations. When banks and fintechs come together, it can help to solve problems, enhance loyalty and deliver a better customer experience. Fintech partnerships can help banks unlock new customer segments and revenue streams. *About the writer: Kaduwo is a researcher and economist. Contact: [email protected], call/Whatsapp +263773376128 Banks should just partner fintechs Econometrics HawksView Tinashe Kaduwo Page 30 NewsHawks Issue 151, 6 October 2023
Page 26 NewsHawks Issue 76, 15 April 2022 Business MATTERS NewsHawks CURRENCIES LAST CHANGE %CHANGE USD/JPY 109.29 +0.38 +0.35 GBP/USD 1.38 -0.014 -0.997 USD/CAD 1.229 +0.001 +0.07 USD/CHF 0.913 +0.005 +0.53 AUD/USD 0.771 -0.006 -0.76 COMMODITIES LAST CHANGE %CHANGE *OIL 63.47 -1.54 -2.37 *GOLD 1,769.5 +1.2 +0.068 *SILVER 25.94 -0.145 -0.56 *PLATINUM 1,201.6 +4 +0.33 MARKETS *COPPER 4.458 -0.029 -0.65 BERNARD MPOFU THE Confederation of Zimbabwe Industries (CZI) says the government should take a market-based approach in reforming the monetary system as President Emmerson Mnangagwa’s administration pushes for de-dollarisation after retaining power in the recently held general elections, warning that a knee-jerk policy shift will destabilise the economy. Zimbabwe’s economy is under a multicurrency system, with the local currency circulating alongside the United States dollar. Official statistics from the Reserve Bank of Zimbabwe show that at least 75% of domestic transactions and bank deposits are in foreign currency. The country’s forex market is made up of the willing-buyer willing-seller and wholesale auction systems. In its study presented at the just-ended Zimbabwe Economic Development Conference held in Victoria Falls, the CZI said re-introducing the Zimbabwe dollar as the anchor currency in circulation should be backed by strong economic fundamentals. De-dollarisation is a noticeable reduction in the degree of dollarisation. Forced dollarisation (even at a premium) is bound to fail and precipitate massive capital flight, the CZI warns, citing past experiences in Bolivia, Mexico, Peru, Argentina and Pakistan. “Administrative measures or forced de-dollarisation often encourages capital flight and reduce financial sector intermediation,” the CZI says. According to the International Monetary Fund, the parallel forex market constitutes up to 30% of imports while the formal market (auction and interbank) constitutes 70%. Experts say Zimbabwe has limited export diversification and largely primary commodities, with the platinum group metals, gold and tobacco constituting at least 80% of total exports. The country has limited reserves, hence limited scope for forex market intervention to counter sudden unexpected exchange rate shocks. Ahead of the 23 August general elections, Mnangagwa, who was battling a depreciating domestic currency and rising inflation, hinted that his government wanted to suspend the dual monetary system. This week, the central bank introduced gold-backed digital tokens which it said would be used for carrying out daily transactions. This comes as the local unit continues to depreciate. Base monetary reforms on market Statistics from the Reserve Bank of Zimbabwe show that at least 75% of domestic transactions and bank deposits are in foreign currency.
Page 32 NewsHawks Issue 151, 6 October 2023 Companies & Markets BERNARD MPOFU ONLY 50% of Zimbabwe’s pension funds are currently active as many others face collapse, a development that may spell doom on workers reaching retirement age, official statistics from the country’s insurance and pensions regulator have shown. Pensions are one of the most emotive issues in Zimbabwe following yesteryear events where a lot of people lost their lifetime savings between 2004 and 2009 without any recourse. As a result, many Zimbabweans no longer trust pension funds at all and the matter has been compounded by the floundering economy. Some companies, on the other hand, have been defaulting on their pension contributions, citing an unfavourable economic environment. Mistrust has been at the centre of relations between insurance companies and pension contributors, prompting th3 authorities to come up with several confidence boosting measures. According to the Insurance and Pensionz Commission (Ipec), Pensions Industry Report for the half-year ended 30 June 2023, the number of registered occupational pension funds dropped to 970 during the period under review compared to 977 reported during prior comparative period. Ipec says a total 394 funds were undergoing dissolution whilst eight dissolutions were completed during the quarter ended 30 June 2023. “The decrease of 19 funds was as a result of transfers, mergers, dissolutions and the exclusion of funds, which had previously been double counted as a result of dual reporting. On the other hand, 12 new funds were registered,” Ipec says. “Of the 970 funds, 492 were active, accounting for 51% of the industry’s funds. The remaining 478 funds were inactive as they were either paid up or undergoing dissolution. In addition, 37 pension funds were defined benefit schemes whilst the remainder were defined contribution schemes.” The report also shows that only 14 of the 970 registered funds conduct their own in-house fund administration business. The remainder, which are insured and self-administered funds, outsource the services to fund administrators. There were 13 fund administrators registered with Ipec as at 30 June 2023. Five of the 13 administrators were independent administrators, while the remaining eight were registered life assurance companies conducting fund administration business. Zim needs productivity centre: Study Distressed pension funds collapse ZIMBABWE should consider setting up a national productivity centre to improve the country’s competitiveness, over two decades after the regional bloc gave the nod for this new entity, a new study has shown. In 1999, the Southern African Development Community (Sadc) adopted a declaration on productivity in a bid to boost output in member states, but a few countries like Zimbabwe have been reluctant to set up the new structure Studies have shown that countries that have successfully managed to boost productivity have also created policies and institutional environments that promote confidence and trust in private enterprises. Diversification through structural change – has also been cited as important source of total factor productivity in the economy. Experts say benefits of high productivity include low costs that result in greater profits, improved remuneration packages for workers and better working conditions, lower prices, and better quality products for customers. According to a study by economic consultant Reginald Chaoneka and presented during the Zimbabwe Economic Development Conference held in Victoria Falls recently, low productivity is one of the main challenges faced by Zimbabwe despite having a relatively diverse economy compared to regional peers. This study assesses the effects of both the external environment and internal factors that drive firms’ productivity levels, so that the government prioritises resources in more critical areas to boost productivity. “Given that a number of stakeholders are involved, it may be necessary for the Government of Zimbabwe to establish a National Productivity Centre as agreed to in the 1999 Sadc Declaration on Productivity,” reads the study. “The Government of Zimbabwe may need to consider incentives to harness local technological developments. The exemption of duty on equipment imports, which was introduced in 2016 is a welcome development. Institutions that drive scientific research were set up a long time ago, such as the Scientific Research and Development Centre (SIRDC), however, these institutions have been poorly funded and thus, they struggle in their efforts to provide public scientific knowledge, which private firms could use for innovation.” The Sadc region encourages member states to establish national productivity centres, since they play a crucial role in facilitating the removal of impediments such as tax obstacles, electricity and water challenges to firms’ productivity levels, and in creating awareness of productivity issues. Productivity centres also monitor productivity trends and lead the productivity movement in forward-looking economies. The study also shows that investment in energy and water infrastructure is also key in driving productivity. “It is necessary for the Zimbabwean government to engage in public-private partnerships with investors that have an interest in power generation,” the study shows. “Clean energy is also critical for the country’s sustainable growth, hence investment in solar farms is much warranted. “Water is very important for firms’ productivity levels. The inefficiency of public water providers affects firms’ efficiency in the manufacturing sector, since the majority of firms rely on public water supply. The problem of water supply reliability is not due to a lack of water resources, but rather a result of inadequate water infrastructure, and lack of capacity in purifying dam water.” — STAFF WRITER. Inefficiency of public water providers negatively affects companies in the manufacturing sector.
Page 33 BERNRAD MPOFU WHEN President Emmerson Mnangagwa changed the name of Zimbabwe’s first-ever sovereign fund to Mutapa Investment Fund (MIF), the country’s deep-rooted polarised opinions were laid bare. Before the name change, the fund was up until late September this year referred to as the Sovereign Wealth Fund of Zimbabwe, a neutral name given the country’s ethnic diversity and complexities as well. For some, renaming the sovereign wealth fund after one of the most dominant pre-colonial empires signaled Harare’s aspirations for the fund’s grandeur. Some critics, on the other hand, raised eyebrows, saying President Mnangagwa could be secretly plotting to establish an entity that would in future benefit his family and cronies after retirement. Not just that, naming an investment fund after an ethnic group which Mnangagwa identifies with also stirred debate on the country’s growing tribal politics which analysts say has been widely projected ever since Mnangagwa took power in 2017 following a military-assisted intervention. After all, for them Mnangagwa had been referred to as Munhumutapa/Mwenemutapa (in other dialects) by his deputy Constantino Chiwenga, who, according to critics, meant he had been elevated to a monarch. During a yesteryear rebuke of a Masvingo traditional chief who had raised concern over high levels of corruption and impunity in the country, Vice-President Chiwenga addressed his boss as Munhumutapa: equating him to one of the most dominant empires in the country’s pre-colonial history. Nearly 10 years ago, the government launched the country’s first-ever sovereign wealth fund, an initiative meant to benefit future generations even when finite natural resources eventually get depleted. At its launch, the fund was expected to be financed through proceeds of the government’s shareholding in mining assets. Zimbabwe is endowed with over 40 base minerals and several precious stones. Now proceeds from other non-resource entities will fund the MIF. A sovereign wealth fund is a pool of money set aside by a government to benefit an economy and citizens. The money from a sovereign wealth fund comes from the country’s reserves that have grown due to budget surpluses, trade surpluses and revenue gained from exporting natural resources. “We have one Munhumutapa (Mnangagwa), we have one leader and it is that leader we give respect. It is that leader we show the entire nation what respect is all about,” Chiwenga said a few years back. “This is Zimbabwe. I thought I should say this, I respect Munhumutapa and no one touches him as long as I live.” To add to the drama, Mnangagwa used his presidential powers not only to push for the name change but also exempted the MIF from going through public procurement in what his critics say was a subtle of way of evading scrutiny. Outside matters relating to ethnicity, the form and structure of the investment fund also triggered pertinent questions which beg answers. Former opposition Citizens’ Coalition for Change spokesperson and member of Parliament for Mt Pleasant, Fadzai Mahere, said the new fund was a grand looting scheme. “Historical accounts of the decline and collapse of Mutapa State offer a cautionary tale for Zimbabwe’s sovereign wealth fund, ironically 'renamed' the Mutapa Investment Fund by Mr Mnangagwa in an unconstitutional Statutory Instrument on the 19th of September 2023,” Mahere wrote on her blog this week. “No official reasons have been given for the renaming of the Fund. However, the effect of the name change is to make it not readily discernible to a foreign entity that they are dealing with a sovereign wealth fund as opposed to a private investment fund.” Granting Mnangagwa carte blanche powers in appointing the sovereign wealth fund’s board of directors, Mahere argued would also heighten cronyism and nepotism after Zimbabwe’s leader recently appointed close family members, allies and clansmen into his executive. “Although he has to consult the minister (of Finance and Investment Promotion), he is not bound by any of the minister’s recommendations,” she added. “This provision is concerning in light of recent appointments by Mr Mnangagwa to Cabinet and other public posts which have been criticised for breaching sounding corporate governance principles and being underpinned by instances of nepotism. The lack of independence of the fund and limited (if non-existent) checks and balances on an already powerful executive head increase the potential for looting and abuse of state resources.” South Africa-based Zanu PF sympathiser and anti-sanctions campaigner Rutendo Matinyarare defended the proposed composition of MIF, chiding critics for their limited knowledge. “In that debate, it became clear that there is little understanding of what the investment fund is, how it works, how it will be managed and the safeguards around it,” he wrote on his blog. “It also appeared that most people (some very educated and qualified in finance) could not differentiate between shareholding, directorship, and management of a company. All of this is because the Zimbabwean government has not created awareness and educated Zimbabweans about the MIF, how it will function and how it will be regulated. He also argued that the transfer of government companies to the control of a private fund manager, allows the ring-fencing of the proceeds of these assets from government use, so that the proceeds can be protected for the future, as was done in Norway. “It also relieves the government from the burden of guaranteeing and amortizing the debt and borrowing of the companies against taxpayers' funds, as it becomes the responsibility of the fund (shareholder) to push companies to rationalise, restructure, produce, raise funds, be viable and repay their own debts through generated revenue,” Matinyarare said. “The President of Zimbabwe, elected to represent the Zimbabwean people, remains the overseer of the investment fund, alongside the Minister of Finance and the people of Zimbabwe (Parliament, civil society), who will receive audited financials and annual reports.” Tinashe Murapata, chief executive at investment and advisory firm Leon Africa, says the transfer of perennially loss-making stateowned enterprises to MIF books is a ploy nationalise state assets. “What is happening is nationalisation of commercial assets with direct control and command by the centre,” Murapata says. “Many of these assets were private, had private shareholders, parastatals, ran at arms length and now all directly bundled under the command of Mutapa. “This is nothing new. This happened in Africa in the 1960s where companies were bundled up through nationalisation and a joint venture with a preferred private investor was pursued. It reminded me very much of Tiny Rowland — the preferred private investor and his foray in Africa.” While attending the Dubai Expo two years ago, Finance minister Mthuli Ncube told The NewsHawks over the phone that the country’s sovereign wealth fund would be “strengthened”. “It’s a very important institution for preserving wealth for future generations of Zimbabwe and as government we are really strengthening this institution. It was created a few years ago, but has not been as active,” Ncube said. “The Sovereign Wealth Fund is being strengthened. We are appointing a new board as a first thing to lead the institution. Secondly, we are going to add more assets under the institution in the form of gold assets, coal assets and then oil and gas assets, among other assets, so that it becomes a safe of future generations in terms of wealth preservation which will deal with inter-generational issues in the country.” New investment fund exposes polarisation Former Citizens’ Coalition for Change spokesperson and member of Parliament for Mt Pleasant Fadzai Mahere NewsHawks Companies & Markets Issue 151, 6 October 2023
Page 34 NewsHawks Issue 151, 6 October 2023 Companies & Markets First Capital Bank Managing Director Tapera Mushoriwa Chief Finance Officer Fanuel Kapanje Chief Operating Officer Munyaradzi Kavhu Head of Risk Hillary Kubvoruno Consumer Banking Director Angela Kamhiriri Head of Credit Shingai Shora FIRST Capital Bank Zimbabwe Limited, formerly Barclays Bank Zimbabwe, whose leadership and management team is now headed by Managing Director Tapera Mushoriwa, is on an overseas client mobilisation, business and investment roadshow in the United Kingdom. Mushoriwa, who was National Building Society managing director, replaced Ciaran McSharry at the helm. The executive management team also includes a Fanuel Kapanje (Chief Financial Officer), Mutemwa Ushewokunze (Commercial Director), Angela Kamhiriri (Consumer Banking Director), Munyaradzi Kavhu (Chief Operating Officer), Lovemore Mangenda (Head of Compliance), Shingai Shora (Head of Credit), Hillary Kubvoruno (Head of Risk), Sarudzai Binha (Head of Legal and Company Secretary), Farai Chirozva (Head of Internal Audit), Emily Nemapare (Head of Marketing and Communication) and Brian Takaedza (Heaf of Treasury and Markets). The First Capital will team will visit Doncaster, Leicester, Birmingham and London, one of the world's biggest financial services centres. The bank is looking for new markets - clients, business and investment - in the UK, which has the biggest Zimbabwean diaspora overseas, to bolster its position in the market. It also wants to further tap into the growing remittances business in Zimbabwe. The remittances business is big in Zimbabwe, with most money coming from South Africa and UK. The United States, Australia and Canada also contribute significantly. The remittances business in Zimbabwe has been lucrative due to the need for efficient financial solutions in the current digital environment. In his 2023 mid-term monetary policy statement, Reserve Bank of Zimbabwe governor John Mangudya said as at 30 June international remittances through official channels amounted to US$1.4 billion, a 4% increase from US$1.3 billion recorded in the same period last year. Remittances are a critical source of foreign currency and income for Zimbabwe's economy; supporting individuals, families and businesses, as well as communities. The other sources of foreign currency are exports, donor and humanitarian inflows, lines of credit and foreign direct investment. However, Zimbabweans overseas face numerous challenges when sending money back home, including high costs of transactions, exchange rates volatility, and limited access to financial services. This is where First Capital wants to come in and play an increased role in the market. The UK roadshow is part of that. First Capital Bank Zimbabwe is a subsidiary of FMBCapital Holdings plc, a financial services group based in Mauritius with other related divisions in Botswana, Malawi, Mozambique, Zambia. First Capital Bank tours UK
NewsHawks Companies & Markets Page 35 Issue 151, 6 October 2023 Head of Compliance Lovemore Mangenda Head of Legal and Company Secretary Sarudzai Binha Head of Treasury and Markets Brian Takaedza Commercial Director Mutemwa Ushewokunze Head of Marketing and Communications Emily Nemapare Head of Internal Audit Farai Chirozva
Page 36 NewsHawks Issue 151, 6 October 2023 THE manipulation of public opinion through the manufacture of consent, perception management, and sentiment manipulation has become a concerning issue in electoral processes worldwide. In the last article, we saw how Zimbabwe's 2023 general election served as a stark reminder of the prevalence and impact of perception management and sentiment manipulation on the political landscape. Zimbabwe, a country with a history of political turmoil, is no exception. To ensure fair and transparent elections, it is crucial to address these challenges head-on. As citizens, it is essential to remain vigilant, critically analyse information, and demand accountability from political actors to protect democratic ideals. This article aims to explore effective strategies to counter the manufacture of consent, perception management, and sentiment manipulation in future elections in Zimbabwe. One of the most effective ways to counter the manufacture of consent is by promoting media literacy among the citizens of Zimbabwe. By educating the public about media biases, propaganda techniques, and fact-checking methods, individuals can become more discerning consumers of information. This will enable them to critically analyse political messages and make informed decisions during elections. In addition to this, they will be able to discern cases of misinformation and disinformation. A robust and independent media plays a vital role in countering the manufacture of consent. It is essential to support and protect journalists who strive to provide unbiased and accurate information to the public. The government is expected to enact laws that safeguard press freedom and open the media space by registering more independent broadcasting, community and print media media outlets. Additionally, promoting investigative journalism and fact-checking initiatives can help expose misinformation and propaganda. With the rise of social media and digital platforms, sentiment manipulation has become a prevalent tool in influencing public opinion. To counter this, it is crucial to enhance digital literacy among the population. Educating citizens about online privacy, data manipulation, and the spread of fake news can empower them to identify and resist attempts at sentiment manipulation. Active citizen participation is vital in countering the manufacture of consent. Encouraging civic engagement through community forums, public debates, and town hall meetings can foster a culture of critical thinking and open dialogue. By engaging with political candidates, citizens can hold them accountable, demand transparency, and challenge false narratives. To ensure fair elections, it is essential to strengthen electoral laws and How to counter manufacture of consent: A Blueprint for future elections in Zimbabwe institutions. The Zimbabwe Electoral Commission should rise above reproach by exhibiting a high degree of independence with the power to enforce regulations and foresee the electoral process fairly. The commission is expected to should be transparent, impartial, and accountable to the public. Additionally, electoral laws should be updated to address emerging challenges, such as online campaigning and the use of social media. International observation and support plays a crucial role in countering the manufacture of consent in Zimbabwe's elections. International organizations, such as the Southern African Development Community, the African Union, and the United Nations agencies and should continue to support actively monitor the electoral process. Their presence can deter manipulation attempts and provide an unbiased assessment of the election's credibility. Political transparency is essential in countering perception management. Political parties should disclose their sources of funding, campaign strategies, and affiliations. This transparency will enable voters to make informed decisions based on the merits of the candidates rather than manipulated perceptions. Additionally, implementing regulations on political advertising and campaign financing can help level the playing field and reduce the influence of money in elections. Civil society organisations’ role in promoting democracy and holding g o v e r n m e n t s accountable is not in dispute. Which is why attempts at muzzling and controlling them by the state through the Private Voluntary Organisations Bill has been severely criticised . These organisations should be allowed to actively monitor the electoral process, raise awareness about them, and advocate for electoral reforms. By collaborating with civil society organisations, citizens can amplify their voices and collectively work towards fair and transparent elections. In conclusion, countering the manufacture of consent, perception management, and sentiment manipulation in future elections in Zimbabwe requires a multi-faceted approach. By promoting media literacy, strengthening independent media, enhancing digital literacy, encouraging civic engagement, and fostering political transparency, Zimbabwe can take significant strides towards fair and transparent elections. Additionally, strengthening electoral laws and institutions, seeking international observation and support, and engaging civil society organisations will bolster the integrity of the electoral process. It is through these collective efforts that Zimbabwe can pave the way for a more democratic and inclusive future. *About the writer: Lenox Lizwi Mhlanga is a consultant communication strategist with over 23 years’ experience in the profession. He has worked for organisations such as the World Bank Group’s International Monetary Fund (IMF). He is a respected thought-leader and is a mentor, facilitator and trainer. He can be contacted on mobile: +263 772 400 656 or email: [email protected] Corporate Communications Lenox Lizwi Mhlanga Companies & Markets
The Big Debate Page 37 STATE OF THE NATION ADDRESS BY THE PRESIDENT, HIS EXCELLENCY, DR. E. D. MNANGAGWA AT THE OFFICIAL OPENING OF THE FIRST SESSION OF THE TENTH PARLIAMENT OF ZIMBABWE, NEW PARLIAMENT BUILDING 3 OCTOBER 2023 Vice President, Hon. Gen. (Rtd.) Dr. C. G. D. N. Chiwenga; Vice President, Hon. Col. (Rtd.) K. C. D. Mohadi; Speaker of Parliament, Hon. Advocate J. F. N. Mudenda; President of the Senate, Hon. M. M. Chinomona; Chief Justice, Hon. L. Malaba; Honourable Ministers of Government; President of the Chief’s Council, Chief M. Khumalo, and other Traditional Leaders here present; Honourable Members of Parliament and the Senate; Senior Government Officials; Service Chiefs; Fellow Zimbabweans here at home and in the Diaspora; Ladies and Gentlemen; Comrades and Friends. IT is my singular honour to address this August House as we open the First Session of the Tenth Parliament of Zimbabwe. The Session comes shortly after we successfully conducted our credible, free, fair and peaceful Harmonised General Elections, in accordance with our democratic traditions and practices. Honourable Members of Parliament, may I take this opportunity to congratulate you all for having secured the mandate to serve the people of our great motherland, Zimbabwe, in your respective constituencies for the next five years. I challenge you to accelerate the completion of the matters outstanding from the legislative agenda of the Ninth Parliament. Much work lies ahead. As you are aware, our economy has been on an upward trajectory, recording positive growth rates across sectors, notwithstanding the illegal sanctions imposed on us by our detractors. The robust measures put in place by Government to enhance and guarantee agricultural productivity, including irrigation development and climate-proofing, saw us realise national food security. Zimbabwe is now wheat self-sufficient. The Second Republic has begun the drilling of 35 000 boreholes and establishing Village Agro-Business Units. This is set to consolidate national agriculture productivity and food self-sufficiency. Our mining sector, grew from US$2.8 billion in 2017 to the present US$12 billion, and is propelling socio- economic development and growth. To enhance the participation of small-scale and artisanal miners, Government established the US$10 million Mining Industry Loan Fund, while the rolling out of more gold centres will be prioritised. Mr. Speaker Sir, Madame President; The Second Republic will increase resources disbursed towards the Devolution and Decentralisation Programme. Priority is being given to projects which improve access and quality of education, health, roads, water and sanitation. My Administration is committed to industrialising and modernising the economy as well as transforming our infrastructure in order to improve incomes and the livelihoods of our citizens. Power supply has significantly improved following the commissioning of Hwange Power Station Units 7 and 8, while arrangements have been made to guarantee stable supply from existing power stations. Deliberate investments are ongoing for increased power generation capacity, including removing entry barriers for Independent Power Producers. To enhance connectivity, we continue to upgrade the road network across the country through domestic resources. Similar initiatives are being implemented with regards to rail infrastructure, with focus on recapitalisation, rehabilitation and refurbishment. The tourism sector is on a growth trajectory, registering an increase of 62% in international tourist arrivals during the first half of 2023. My Government continues to accelerate implementation of the Heritage Based Education 5.0 Model, aimed at producing goods and services for our country’s socio-economic needs. This Science, Technology and Innovation thrust has scaled up science-based education from the primary level up to institutions of higher education. More of our young talented boys and girls are registering patents and running viable start-ups. Mr. Speaker Sir, Madame President; The fiscal consolidation measures and reforms have ensured positive fiscal outcomes that are critical for budget sustainability and lasting macro-economic stability. Complementary fiscal and monetary policies have positively impacted the attainment of the prevailing stable macro-economic environment. Going forward, the Second Republic remains resolute in implementing measures that ensure confidence in our domestic currency. Mr. Speaker Sir, Madame President; May I now turn to the legislative agenda which must occupy the Parliamentary schedule during this first Session of the Tenth Parliament. The Mines and Minerals Amendment Bill; Public Finance Management Amendment Bill; Medical Services Amendment Bill; Insurance Bill and the Private Voluntary Organisation Bill, which were outstanding from the Ninth Parliament, must be concluded during the First Session of this Parliament. Obsolete laws such as the Fredrick Clayton Trust Act; the Service of Documents Act; Settled Estates Leasing Act and the War Marriages Validation Act should be repealed under the Repeal of Laws (General Amendment) Bill. New Bills which will constitute the business of the First Session include the Persons with Disabilities Bill and the Administration of Estates Amendment Bill. The Legal Practitioners (Amendment) Bill, 2023 seeks to streamline the registration process for foreign legal practitioners. Also on the agenda will be the Inheritance and Succession Laws (General Amendment) Bill, 2023, which aligns inheritance and succession laws to the Constitution and international best practice. To give impetus to matters related to climate change adaptation and resilience, the Tenth Parliament is called upon to review the Water Act; the Zimbabwe National Water Authority Act and the Plant Breeders Act. The much-anticipated Climate Change Bill seeking to regulate greenhouse gas emissions and facilitate low carbon development technologies should be thoroughly debated towards strengthening appropriate institutions and funding mechanisms. The Parks and Wildlife Act is being amended whilst a Human Wildlife Conflict Relief Fund is being set up to offer monetary benefits to victims of human wildlife conflict in communities. Mnangagwa delivers latest state-of-the-nation address President Emmerson Mnangagwa NewsHawks Issue 151, 6 October 2023
Page 38 NewsHawks Issue 151, 6 October 2023 Mr. Speaker Sir, Madame President; The Second Republic aims to fully exploit, value add and beneficiate the country’s abundant natural resources. In this regard, as industrialisation gathers momentum, Parliament must expedite the consideration of the Competition Amendment Bill; Economic Empowerment Bill; Standards Bill; Sugar Production Amendment Bill and the Technical Regulations Bill. Ratification will also be required in respect of the SADC Protocol on Industry and the Inter-African Coffee Agreement. Through the Electronic Transactions and Electronic Commerce Bill, Parliament will assist in the establishment of a framework promoting fair, accessible, responsible and sustainable online transactions. The long outstanding Postal and Telecommunications Amendment Bill must be concluded. Government is committed to providing modern and affordable human settlements for all Zimbabweans. In this regard, the Zimbabwe Construction Contractors Council Bill seeks to establish an authority that will bring sanity in the built environment. Parliament is expected to consider the alignment of the Housing Standards Control Act and the Housing and Buildings Act. Government has made strides towards decentralisation of service delivery, including deployment of medical specialists to provincial and district hospitals. The Medical Aid Societies Regulatory Authority, Health Professions Act; Family Planning Council Act and the Medicines and Allied Substances Control Act will be brought before this August House. The enactment of the National Health Insurance Bill must be expedited to accelerate the establishment of the National Health Insurance Scheme towards Universal Health Coverage. The Ministry of Public Service, Labour and Social Welfare is expected to bring the National Productivity Institute Bill; Pensions Amendment Bill; Occupational Safety and Health Amendment Bill as well as the Human Resources Practitioners Bill for consideration. Mr. Speaker Sir, Madame President; Government is deeply concerned about the increase in drug and substance abuse, especially among the youth. Measures to tame the scourge by strengthening relevant institutions for effective coordination and programming of activities, will be instituted. Over and above this, Government is developing the National Youth Bill, which will be considered during this Session. The Bill will provide for mechanisms to facilitate mainstreaming of the youth in social, economic and political spaces, as well as the sustenance of Vocational Training Centres as hubs for local community development. I challenge the private sector to play a part in support of our ongoing initiatives for youth development and empowerment. Meanwhile, women play a critical role in nation building and their contribution to economic growth should never be overlooked. Equally, viable and profitable Micro, Small and Medium Enterprises have a far reaching impact on our economy as a whole. The Small and Medium Enterprises Act will be reviewed. Additionally, Parliament is expected to approve the Savings and Credit Cooperative Societies Bill to provide for the administration and management of Savings and Credit Cooperative Societies. The mainstreaming of Community Radio Stations attests to the Second Republic’s commitment towards accelerating media reforms. In an endeavour to further open up the airwaves, the Broadcasting Services Amendment Bill should be finalised and amendments to the Zimbabwe Media Commission Act passed. Mr. Speaker Sir, Madame President; Sport is integral to job creation as well as the promotion of healthy lifestyles. In this regard, the Second Republic is currently developing the Sport, Leisure and Recreation Bill to create an enabling environment for sport and recreation delivery. Through the Sports Integrity Bill, Parliament is expected to assist in the creation of a regulated and fair sporting environment. Parliament should also consider amending the Lotteries and Gaming Act for the purpose of its alignment to the Constitution and the incorporation of corporate governance measures, as provided for in the Public Entities Corporate Governance Act. Mr. Speaker Sir, Madame President; Our political independence came about through the support and solidarity of progressive nations in the region and beyond. Hence, the Veterans of the Liberation Struggle Act will be amended to include Botswana as one of the countries that had transit camps during our Liberation Struggle. “Non-Combatant Cadre” will be redefined to acknowledge those who played a part in the Struggle, under this category. Similarly, the National Heroes Act will be amended to redefine categories of heroes, namely: National Hero; Liberation War Hero; and Liberation Hero. Amendments to the War Victims Compensation Act will now include recommendations from the Chidyausiku Commission of Inquiry Report. As Zimbabwe strengthens its cooperation with the international community, the Treaty on the Prohibition of Nuclear Weapons, which seeks to complement the Nuclear Non-Proliferation Treaty, is expected to be tabled for ratification. Furthermore, radiation safety will be strengthened through the Radiation Protection Amendment Bill. Biological weapons, which were used by the minority racist white settler regime during our Liberation Struggle, harmed both combatants and civilians alike. The Biological Warfare Bill will criminalise the use of such weapons by giving effect to the Convention on Biological Warfare. To date, Government has launched a National Plan of Action against Trafficking in Persons. To operationalise the Plan, this August House must amend the Trafficking in Persons Act. Other pending amendments include those that relate to the Immigration Act; Citizenship of Zimbabwe Act; National Archives of Zimbabwe Act; Private Investigators and Security Guards (Control) Act; Official Secrets Act; Unlawful Organisations Act; Censorship and Entertainments Control Act and the Births and Deaths Registration Act. Mr. Speaker Sir, Madame President; In concluding my address, I wish to commend both the National Assembly and Senate for championing the diligent discharge of business in the last Parliament. Let me once again take this opportunity to urge all Parliamentarians to wholeheartedly participate in the enactment of laws that will improve the quality of life of our people. ‘Nyika inovakwa inotongwa inonamatigwa nevene vayo, Ilizwe lakhiwa, libuswe, likhulekelwe ngabanikazi balo’. This August House should ensure that law is an instrument for development. Further, Parliament is encouraged to be an institution of peace building, hope, national development and the entrenchment of constitutionalism and deepening democratic practices in our country. In all our activities, let us safeguard our values and traditions as the unique people of Zimbabwe. With continued unity of purpose, we can accelerate our ongoing quest to build, modernise and industrialise our great motherland, Zimbabwe. This weighty obligation is on our shoulders. We must deliver and lift more of our people out of poverty and into prosperity. With these remarks it in my distinct honour and privilege to wish the First Session of the Tenth Parliament of Zimbabwe success and hereby declare the First Session of the Tenth Parliament of Zimbabwe officially open. God bless you. God bless Zimbabwe. I thank you. The Big Debate
NewsHawks Reframing Issues Page 39 Issue 151, 6 October 2023 PRIDE MKONO PRESIDENT Emmerson Mnangagwa is Zimbabwe’s second executive president since Independence in 1980, after he took power following a military coup in 2017. Two elections, in 2018 and 2023, which followed his ascension to power have failed to address the legitimacy question of his leadership. His leadership over the last six years degenerated from promises of reforms to outright personalistic dictatorship. In the same period, he has thrown the country into various constitutional crises and is likely to do so again. I posit that Mnangagwa will seek a third term in violation of the existing constitutional provisions or seek to influence the succession to his office. Both events will throw the nation into a constitutional crisis. However, this should not be shocking, given the deepening personalistic dictatorship which has come to define the Mnangagwa presidency. In this article, I will explore the nature and character of Mnangagwa’s personalistic dictatorship, its key features, and its implications for governance and society in Zimbabwe. What is a personalistic dictatorship? Most of you readers have already heard Mnangagwa defined as a dictator or an authoritarian. While, in strict political science terms, the two terms refer to similar but different models of leadership, in the daily context they are used to describe the same traits. It is in this context that I use them here for ease of understanding. It is my submission that Mnangagwa's leadership is a variant referred to as the "personalistic dictatorship". Personalistic dictatorship is a form of authoritarian rule characterised by the concentration of power in the hands of a single leader, often referred to as a "strongman" or "autocrat." This type of regime is distinct from traditional authoritarian or totalitarian systems, as it revolves around the personality, and/ or charisma and/or financial resources of the leader rather than a rigid ideology or party structure. While Zanu PF has structures, their impact on important decisions of government and the party is negligible. In fact, Mnangagwa appoints most of those with decision-making power in the party and government, and this gives him ultimate power over all major decisions. 1. Dominance of the leader At the heart of Mnangagwa’s personalistic dictatorship is his overwhelming dominance as leader, which is both a creation of the constitution and the general political culture in Zimbabwe. Mnangagwa individually controls all branches of government, military, judiciary, public media, and the majority of domestic and foreign economic investments. Outside Zanu PF, he has cultivated a cult of personality, portraying himself as a saviour, super patriot, and indispensable through the "#4ED" organisations. What Mnangagwa lacks in charisma, he has compensated in omnipresence through a massive publicity campaign with thousands of top range vehicles, large banners, posters, and T-shirts everywhere showing his face. Everything seems to be "for ED" and he has left nothing to chance when it comes to making that point. 2. Weak institutions Personalistic dictatorships, like Mnangagwa's, tend to have weak or highly compromised institutions. Since assuming power after the 2017 coup, Mnangagwa has sought to consolidate his personal authority by eliminating and undermining all and any forms of checks and balances. He has gone to an elaborate length to capture and undermine the judiciary and the legislature so that he can rule without any constraints. These captured institutions have now become hollow shells with no real power to perform their legitimate constitutional duties. 3. Repression and surveillance To maintain control on power, the Mnangagwa presidency has been characterised by a high degree of repression and surveillance. Opposition parties, independent media, and civil society activists are frequently suppressed or co-opted by the ruling regime. Citizens are subjected to constant surveillance, and dissent has been met with harsh punishment. Imprisonment, abduction and torture being approaches of choice to silence opposing views. This has cultivated an intense climate of fear that ensures Mnangagwa’s continued dominance. 4. Manipulation of elections In personalistic dictatorships, elections are often manipulated to maintain a facade of legitimacy, and this has been the standard under Mnangagwa for two successive elections. The opposition leader, Nelson Chamisa, has given him a tough run, but the elections have been so shambolic that Mnangagwa has been declared winner without any verification. In all, the elections have been designed to rubber-stamp Mnangagwa’s rule rather than provide a genuine choice for the electorate. Resultantly, the electorate has been rendered powerless and opposition completely emasculated through successive manipulated elections. 5. Economic control Mnangagwa has also usurped all economic power and concentrated it in his hands and that of his inner circle. His family and acolytes have grown extraordinarily rich from feeding off the state largesse. This control over resources has been used to reward loyalty and punish dissent within the ruling establishment. Corruption is rampant and state resources are being siphoned off for personal gain. 6. Nationalism and propaganda Personalistic dictators frequently employ nationalist rhetoric and propaganda to consolidate their rule. To this end, Mnangagwa has attempted to present himself as the embodiment of the nation's identity and interests, using the "nyika inovakwa nevenevayo" (translated to: the country is built by its owners) mantra. This tired nationalistic rhetoric has been used to justify repression and looting of the state. If anything, Mnangagwa and his cohorts are far from representing Zimbabwe's national interests. 7. Insecurity and instability Despite his outward image of strength, Mnangagwa, like all personalistic dictators, is governing the country in an atmosphere of insecurity and instability. He is wary of potential rivals and threats to his power and is accused of purging some of the generals who led the coup in November 2017. His decision-making has been erratic, and he has surrounded himself with family and ethnic clan members. Mnangagwa also has a large contingent of security personnel whenever he travels or sleeps; his paranoia is running high. 8. Succession challenges One of the defining features of personalistic dictatorships is the challenge of succession. Since power is so closely tied to the leader's personality, the question of who will replace them often looms large. At 81, Mnangagwa is the oldest president in the Southern African Development Community (Sadc) and is entering what is supposed to be his last five-year term, but all indications are that succession is far from being resolved. In personalistic dictatorships, succession crises can lead to power struggles and even violence. President Mnangagwa’s exit from power will, most likely, follow this rule of thumb. The second amendment to the 2013 constitution removed the running mate clause, effectively erasing a key part of succession to the presidency. 9. International relations Personalistic dictators often pursue erratic and unpredictable foreign policies. The focus is on self-preservation. The maintenance of power can lead to a disregard for international norms and agreements. To this end, Mnangagwa has pursued a chaotic international relations pathway. First, he paid large sums of money to lobbyists in Washington, London, and Brussels to clean his image and portray him as a reformer. This costly attempt failed dismally and he then aligned himself more with traditional allies in the form of China, Russia, and Belarus. Within Sadc, he has a dithering relationship with factions within the ruling ANC party, but the simple fact is that everyone is tired of Zimbabwe’s unending crises and the failure of its rulers to resolve them. 10. Longevity and vulnerabilities While personalistic dictatorships can endure for extended periods, they are not immune to vulnerabilities. Popular uprisings, economic crises, or internal power struggles can undermine the leader's grip on power, leading to regime change. Given this reality, Mnangagwa has made strategic mistakes and brewed crisis after crisis. His stay in power is equally due to his ruthlessness and the strategic failure of those opposed to him. A united front of civil society, labour, students, democratic opposition, and the diaspora working with progressive elements in the regional and international community has the best chance to upset the Mnangagwa regime through non-violence and civil disobedience. In conclusion, personalistic dictatorship represents a distinct form of authoritarianism centred around a single charismatic leader. It is characterised by the dominance of this leader, weak institutions, repression, manipulation, and a focus on the leader's personality rather than ideology. While these regimes can persist for years or even decades, they often face internal and external challenges that can lead to their downfall. Understanding the nature and character of personalistic dictatorship is essential for analysing the dynamics of resisting Mnangagwa’s illegitimate rule and ultimately ending the nightmare. — Pridemkono.wixsite.com *About the writer: Pride Mkono is a political analyst and social justice activist. He writes here in his personal capacity and can be contacted at [email protected] or X @ MkonoPride. Understanding the key features of Mnangagwa’s personalistic dictatorship President Emmerson Mnangagwa
Page 40 Reframing Issues NewsHawks Issue 151, 6 October 2023 JACOB Dlamini in one of his seminal political works titled “Askari: A story of Collaboration and Betrayal in the Anti-apartheid Struggle” highlights the pitfalls of betrayal and counter betrayal within the anti-apartheid movement and the subsequent collaboration with the apartheid government by former African National Congress cadres. Dlamini painstakingly illustrates the tragic vicious circle of betrayals and counter betrayals within the anti-apartheid struggle whereby some ANC comrades would clandestinely disclose the whereabouts of their fellow ANC comrades, who were undertaking underground military and political activities in South Africa to the ruthless apartheid security police. Upon being captured, these underground ANC operatives would be viciously interrogated and tortured and some of them would break down and end up collaborating with the apartheid regime and ultimately betraying their former comrades. Therefore, Job "Wiwa" Sikhala, a senior member of the opposition Citizens' Coalition for Change (CCC) and political prisoner, set the cat among the pigeons with his latest prison letter smuggled out of the notorious Chikurubi Maximum Security Prison.The letter was a painful lamentation of the betrayal, hypocrisy and treachery he feels he has suffered at the hands of his comrades in the CCC. He indicted his colleagues for their double standards, deception and back-stabbing. Coupled with the fact that, despite the obvious collateral damage suffered by his wife and children due to his unjust incarceration, nonetheless the CCC and its leadership have conspired to neglect them. Accordingly, this opinion piece attempts to unpack Sikhala's current predicament and the contents of his latest prison letter. Thus, I will try to situate it within the latest dynamics of accusations of betrayal and neglect of Sikhala by the opposition movements, especially the CCC, together with civil society and ordinary citizens.This article attempts to answer the question as to why the usual stoic and non-complaining Sikhala rightly feels betrayed and why his askarisation is a tragic indictment of the indifference of the opposition CCC and the people of Zimbabwe. Sikhala was arrested on 14 June 2022 on trumped-up charges of inciting public violence. This comes against the backdrop of the murder of the CCC activist Moreblessing Ali, whom Sikhala was representing as both the lawyer and spokesperson of the Ali family. Moreover, another frivolous charge of obstructing the course of justice was added against Sikhala. However, on 4 May 2023, Sikhala was convicted for obstructing the course of justice and subsequently sentenced to six months in prison (or a fine of US$600). However, since 14 June 2022, Sikhala has been in pre-trial detention awaiting trial for the charges of inciting public violence. Consequently, he has been systematically denied bail on more than 15 occasions. This clearly shows a systematic pattern of prosecution by persecution by the state against Sikhala. Therefore, Sikhala has so far spent 475 days in pre-trial detention in the notorious Chikurubi Prison. Accordingly, this has caused a lot of personal pain and loss on the part of Sikhala while also inflicting collateral damage on his family. This is clearly articulated in Sikhala`s latest letter from prison. The letter has touched a raw nerve and ignited a ferocious and divisive debate among Zimbabweans. Accordingly, there is a school of thought that rightly argued that the elements or the organisations that betrayed Sikhala are the state and the Zanu PF government.Thus, it is the Zanu PF government that conspired to weaponise the judiciary against Sikhala and denied him his constitutionally enshrined right to bail and the right to a fair trial. Therefore, the buck stops with the authoritarian state of Zimbabwe. Furthermore, the denial of bail of bail has been seen as part of the authoritarian consolidation tactics of the Zanu PF government meant to divide the CCC through an attempt to factionalise the main opposition by driving a wedge between party leader Nelson Chamisa and those who are closely aligned with Sikhala's radical and unconventional politics. Therefore, they argued that this letter from Sikhala plays right into the hands and tactics of the Zanu PF government whose political shenanigans are well known. Others have argued that Sikhala needs to take with a pinch of salt some of the reports he gets that some of his comrades in the CCC are actually engaged in dark politics of askarism and hypocrisy associated with the likes of Bishop Abel Muzorewa and Mangosuthi Buthulezi of South Africa whereby they professed solidarity with him in daylight and yet in the dark corners of political prostitution and political treachery they urged Zanu PF not to release Sikhala. This is due to the fact that the senior leaders of the CCC such as Chamisa, Tendai Biti, Amos Chibaya and others have been routinely denied access by the Zanu PF government together with the prison service from visiting and talking to Sikhala at Chikurubi Maximum Security Prison. However, on the other hand the Zanu PF government and prison service have never barred dubious and hypocritical opposition characters like Douglas Mwonzora and Morgan Komichi from visiting Sikhala at Chikurubi Prison. Nonetheless, Sikhala`s letter calls into question the judgement of the CCC and some of its omissions and commissions during his prolonged incarceration. For instance, it is clear that the Zanu PF and President Emmerson Mnangagwa have managed to increase the costs of daring to challenge their authoritarian rule on Sikhala. That is, the 475 days of pre-trial detention has exerted so much financial and economic costs on Sikhala, to the extent that he is struggling to fend for his family. Accordingly, in the letter Sikhala highlighted that he lost his law firm and is struggling to pay his children's school fees. This then calls into question the competence and seriousness of the CCC social welfare department in terms of looking after the welfare of its comrades . This is because a check on the X (formerly Twitter) handle of the CCC social welfare shows that it was last active on 2 June 2022. The situation was exacerbated by the fact that the head of the CCC social welfare, Maureen Kademaunga, was busy with her political and electoral campaign for the 2023 general elections. Unfortunately, there was nobody who was delegated with the welfare responsibilities and could initiate fundraising activities and look after the welfare needs of the persecuted CCC supporters and leaders. However, the Sikhala family's loss of livelihood would have been mitigated if the CCC and its leadership had taken a best interest approach towards Job Sikhala Jr (Sikhala's eldest child) during their controversial candidate selection process of the 2023 elections. That is, under exceptional circumstances and best interest, the CCC should have ringfenced at least a council ward if not a parliamentary constituency in Chitungwiza for Job Sikhala Jr enabling him to contest as a CCC candidate in the 2023 harmonised elections. This would have provided the Sikhala family with a breadwinner who could look after his siblings. Crucially in the present circumstances, the CCC can also devise welfarist and philanthropic measures to assist the Sikhala family through creating a fund whereby its 130 Members of Parliament can donate just US$10 of their monthly salaries or allowances. This translates to US$1 300 per month contributed towards the wellbeing and financial needs of the Sikhala family. Needless to say, this dereliction of welfare duty on the part of the CCC and its leadership has a devastating and domino effect of making ordinary citizens and other members of the CCC to stay away from political activism. Thus, the ordinary citizens will be forced to disengage from opposition politics and become over-cautious and risk averse when it comes to their involvement with opposition politics. This again strengthens Zanu PF's authoritarian stranglehold, because Mnangagwa and his Zanu PF government will use the current financial predicament of Sikhala family as a political scarecrow against the restless citizens and as an example of the personal consequences they will suffer if they dare challenge autocracy. Moreover, what was also disappointing during the just-concluded August 2023 election cycle has been the failure by the CCC and its leadership to mainstream Sikhala's unjust imprisonment. Sikhala was reduced as a footnote during the August 2023 elections by the CCC and its leadership. During the electioneering and campaigning period, the CCC never attempted to make "Free Job Sikhala" one of the central planks of its election campaign. Remember the impact of the "Free Nelson Mandela" campaign on the overall struggle against apartheid. In a similar manner, the "Free Huey P. Newton" movement became part of the overall struggle against Jim Crow apartheid in the United States in the late 1960s. One would have thought the CCC would have taken advantage of the presence of the international media to globalise Sikhala's predicament. This could have been done through simple but potent acts of printing and wearing T-shirts emblazoned "Free Job Sikhala" by CCC leaders and supporters at some of their rallies. Just imagine the symbolical and political importance if Chamisa had addressed just one of his campaign rallies wearing a "Free Job Sikhala" T-shirt. Notwithstanding the hard-hitting and heart-rending nature of Sikhala`s latest prison letter and the deep sense of betrayal and treachery he felt against his comrades in the CCC, the leadership of the CCC should use the letter as an instrument and an avenue to objectively introspect on the way it has handled Sikhala and his family for the past 475 days. The contents of the letter should be taken as a peer review mechanism by Sikhala over the conduct of the leadership of the CCC. This demands that Chamisa together with other senior members of the CCC sit down and go through some of the allegations and grievances of Sikhala. This is not only part of showing good and responsive leadership but it also gives the party the opportunity to learn from its mistakes and identify shortcomings and blind spots. Sikhala is such an important figure in the struggle for democracy and human rights in Zimbabwe. He has over the last 23 years dedicated his life to fighting for a rule of law and human rights-based electoral politics in Zimbabwe. Hence Sikhala has occupied a Steve Biko , Huey P Newton or a Che Guevara-like iconic and mythical status within the democratic polity of Zimbabwe. Therefore, the contents of his letter should not lead Chamisa and the CCC to ostracising Sikhala. Rather, it should lead the CCC to redoubling its energies efforts towards supporting the Sikhala family and also demanding the unconditional release of the political prisoner. For instance, the CCC needs to reactivate and revitalise its social welfare department and engage in aggressive fundraising activities. The CCC also needs to augment the work currently being done by Bulawayo mayor David Coltart who has established the Sikhala Family Trust. Furthermore, at both domestic and international level the CCC and its leadership needs to spearhead an aggressive and robust "Free Job Sikhala" campaign. *About the writer: Taona Blessing Denhere is a human rights and international development lawyer. Askarisation of Job "Wiwa" Sikhala Job "Wiwa" Sikhala Taona B. Denhere
Reframing Issues Page 41 FADZAI MAHERE HISTORICAL accounts of the decline and collapse of the Mutapa State offer a cautionary tale for Zimbabwe’s sovereign wealth fund, ironically “renamed” the Mutapa Investment Fund by Mr Mnangagwa in an unconstitutional statutory instrument on the 19th of September 2023. The origins of Zimbabwe’s sovereign wealth fund can be traced back to a mining sector policy study conducted in 2012 that recommended the establishment of the fund to drive long-term investment leveraging on mining, natural and other resources that would anchor inclusive economic growth and development. Zimbabwe is reported to hold the largest lithium deposits in Africa and the fifth-largest in the world. The country is also home to the world’s third-largest platinum deposits, along with large deposits of other high-value mineral resources like gold, chrome, coal and diamonds. Pursuant to the recommendation, in 2014, Zimbabwe’s Parliament created a Sovereign Wealth Fund of Zimbabwe whose operations fell under the Sovereign Wealth Fund of Zimbabwe Act. The stated purpose of the Fund was to make secure investments for the benefit and enjoyment of future generations of Zimbabweans, to support the development objectives of the Government including its long-term economic and social development, to support fiscal or macro-economic stabilisation and to supplement government revenue. Despite its creation in 2014, the Sovereign Wealth of Zimbabwe Fund was dormant and seems only to have become somewhat operational under the tenure of Mr Mnangagwa. The establishment of the fund aligns with global trends where sovereign wealth funds are expanding rapidly in many parts of the world and becoming a major force in global capital markets. Run properly, sovereign wealth funds can leverage a nation’s natural and other resources to facilitate long term and largescale investment. Run opaquely and corruptly, they can facilitate the large scale looting of a state’s natural resources and economic wealth. What is a sovereign wealth fund? A sovereign wealth fund is a state-owned investment fund comprised of money generated by the government through, for example, surplus reserves from state-owned natural resource revenues, trade surpluses, bank reserves that accumulate from budgeting excesses, foreign currency operations or money that accrues from privatisation projects. Because sovereign wealth funds are created ostensibly to secure investments and safeguard natural resources for the benefit of future generations citizens, their conduct and operation call for greater scrutiny and the creation of strong checks and balances to ensure sound corporate governance and avoid fund mismanagement, looting and abuse. Sound corporate governance is arguably the most crucial aspect to the development of robust investment strategies for sovereign wealth funds. Establishing clear independence is a prerequisite in order to avoid political interference. There can be no doubt that a lack of sound corporate governance and political interference will erode a fund’s ability to effectively achieve its key economic objectives, particularly the long-term protection of investments for the benefit of citizens of future generations. Recent legal developments 1. Renaming of Fund On the 19th of September 2023, Mr Mnangagwa controversially promulgated Statutory Instrument 156 of 2023 (SI 156/2023) which changed the name of the Sovereign Wealth Fund of Zimbabwe to the Mutapa Investment Fund. No official reasons have been given for the renaming of the Fund. However, the effect of the name change is to make it not readily discernible to a foreign entity that they are dealing with a sovereign wealth fund as opposed to a private investment fund. 2. Mnangagwa’s unfettered power to appoint Mutapa Fund Board SI 156/2023 gives Mr Mnangagwa the unfettered power to appoint the Chief Executive Officer, the Chief Investment Officer and all eight members of the Mutapa Investment Fund Board. Although he has to consult the minister, he is not bound by any of the minister’s recommendations. Prior to the amendment, the minister of Finance appointed the sovereign wealth fund board members. This provision is concerning in light of recent appointments by Mr Mnangagwa to Cabinet Zimbabwe's sovereign wealth fund: What Mnangagwa has done, why you must be worried President Emmerson Mnangagwa NewsHawks Issue 151, 6 October 2023
Page 42 Reframing Issues NewsHawks Issue 151, 6 October 2023 and other public posts which have been criticised for breaching sound corporate governance principles and being underpinned in some instances by nepotism. The lack of independence of the Fund and the limited (if non-existent) checks and balances on an already powerful executive head increase the potential for looting and abuse of state resources. 3. No more reporting to Parliament Before the amendment, the Sovereign Wealth Fund Board had an obligation to make quarterly reports to the Minister of Finance who was equally obliged to table the Fund’s reports before Parliament. However, SI 156/2023 has taken away the obligation to table the Board’s reports before Parliament. The Board only tables reports to the President and the minister of Finance. This removes all pretense of public scrutiny over the Fund’s operations and investments. The scope for Parliamentary oversight of the Fund’s investments and operations, which is an essential element of sound public financial management, has also been severely curtailed. The risk is that looting and abuse of the Fund’s assets and resources will be hidden from public scrutiny. 4. Government shares in key companies now vest in Mutapa Fund The shares held by the Government in a number of gazetted companies now vest in the Mutapa Fund. There is no need for any formal share transfer. The transfer is “by operation of law.” The company secretaries of the affected companies have 21 days to do the necessary company secretarial work to give expression to the new ownership structure. Companies whose government shares will now fall under the Mutapa Investment Fund include Defold Mine, ZUPCO, Kuvimba, Silo Investments (Grain Marketing Board's commercial arm), the National Oil Company of Zimbabwe, the Cold Storage Commission, Petrotrade, POSB, Netone Cellular, the National Railways of Zimbabwe Holdings and NRZ Ltd, TelOne, ARDA Seeds, Zimbabwe Power Company, Powertel, Allied Timbers, Telecel Zimbabwe, Air Zimbabwe, Industrial Development Corporation, Cottco, AFC Limited and Hwange Colliery. Mr Mnangagwa has the unfettered power to add and remove companies to the list as and when he pleases. The effect of putting all the companies under one roof is to create a super-parastatal whose conduct and operations are not subject to public procurement laws, Parliamentary scrutiny or disclosure to the public. This offends the stated objective of the Fund which is to preserve national assets for the benefit of future generations. 5. Members and employees of the Fund “sworn to secrecy” SI 156/2023 prohibits members, employees or agents of the Fund from disclosing any information relating to the affairs of the Fund. This further impedes access to information and undermines transparency and accountability over the Fund’s investments and operations. 6. Free and unrestricted transfer & externalization of foreign currency SI 156/2023 allows the Fund to transfer forex pertaining to investments made by the Fund into and out of Zimbabwe without restriction or delay. This exemption is arbitrary and capricious in light of Zimbabwe’s stringent exchange control laws and currency regulation that apply to all other sectors, especially the private sector. The potential for abuse and externalization of forex through this vehicle looms large. Why must you be worried? Recent amendments to the Sovereign Wealth Fund of Zimbabwe Act by Mr Mnangagwa ought to concern all progressive Zimbabweans because they are unconstitutional, violate mandatory principles of public financial management – particularly transparency and accountability and leave the door wide open for mass looting of state assets and natural resources. This is the opposite of the stated objective of Zimbabwe’s Sovereign Wealth Fund. a. Unconstitutionality The most concerning feature of the recent purported amendment to the Sovereign Wealth Fund of Zimbabwe Act by Mr Mnangagwa is that it is unconstitutional in a number of respects. As a starting point, the amendment was introduced by way of a statutory instrument, which violates section 134 of the Constitution. The said section prohibits the enactment, amendment or repeal of legislation by way of a statutory instrument. Only Parliament can make, change or remove laws. It is no answer to this charge that the statutory instrument was gazetted purportedly under the Presidential Powers (Temporary Measures) Act – this statute itself offends section 134 of the Constitution. In the event of a conflict, the Constitution is supreme. It follows that Mr Mnangagwa’s statutory instrument that changed the Sovereign Wealth Fund of Zimbabwe was invalid, ultra vires the Constitution and thus illegal as a matter of a law. It additionally breaches the section 68 obligation of all administrative authorities to act lawfully, reasonably and fairly. b. Lack of transparency Mr Mnangagwa’s illegal amendment to the Sovereign Wealth Fund of Zimbabwe Act through SI 156 of 2023 further violates the constitutional principles of public financial management enshrined in section 298 of the Constitution. Section 298 states that in all aspects of public finance, of which the management and conduct of a stateowned and controlled fund is one, there must be transparency and accountability. This provision was violated when Mr Mnangagwa proceeded to exempt the Sovereign Wealth of Zimbabwe Fund from the purview of the Public Procurement and Disposal of Public Assets Act through the promulgation of General Notice 1546 of 2023. No explanation has been given, nor can a valid one exist, as to why the Sovereign Wealth Fund would be exempt from public procurement laws that exist to ensure that public procurement and disposal of public assets are effected in a manner that is transparent, fair, honest, cost-effective and competitive. c. Another looting gimmick? The unconstitutional exemption of the Fund from the mandatory provisions of public procurement legislation and the speed with which the illegal amendments were enacted have given rise to the criticism that the illegal amendments are designed to facilitate looting and to evade public scrutiny of the Fund’s operations, investments and the sale and disposal of its assets. There is a real risk and possibility that the assets and entities held by the Fund will be sold without the benefit of public or parliamentary scrutiny or the necessary checks and balances necessary to ensure sound corporate governance and prevent abuse. Conclusion In conclusion, Mr Mnangagwa’s unconstitutional changes to the legal framework of Zimbabwe’s Sovereign Wealth Fund signal a new era of predatory looting of state assets and natural resources by Mr Mnangagwa and the illegal “Mutapa Mafia” he will personally appoint. Zimbabwe, a country reeling under 49% extreme poverty, triple digit hyperinflation and an annual loss of US$2.2 billion to illicit financial flows cannot afford for its resources to bleed further. It behoves all institutions of the State with a mandate to oversee corruption and poor public management including the Auditor-General, Parliament, the Judiciary, the Media and the general citizenry to speak out against this illegal conduct and ensure that this latest unconstitutional enactment is reversed. If this is not done, billions in state resources will be lost once again without any accountability or disclosure. *About the writer: Advocate Fadzai Mahere is a constitutional lawyer, law lecturer and opposition CCC member of the National Assembly for Mt Pleasant.
NewsHawks Reframing Issues Page 43 Issue 151, 6 October 2023 JUSTICE ALFRED MAVEDZENGE Introduction APHIWE is Wapusa’s daughter. Aphiwe has fallen terribly sick with a life-threatening ailment. Aphiwe had gone to visit her grandmother in Chirumanzu. The doctors at St Theresa Hospital (Chirumanzu’s largest medical facility) have tried their best to treat Aphiwe, but her health condition continues to deteriorate. Wapusa has to fetch her daughter and bring her to Harare where she can get better treatment. But all the roads from Harare to Chirumanzu are in a terrible state due to many years of government corruption and neglect which has resulted in poor infrastructure more generally. Wapusa must figure out how to get to Chirumanzu and rescue her daughter. She cannot continue to mourn about the poor state of the roads or government corruption. She has to devise practical ways of getting to Chirumanzu and rescue her daughter. Wapusa owns a Honda Fit. She has to ask herself whether the Honda Fit is technically competent to get her to Aphiwe in light of the rough terrain and terrible road network. Perhaps she needs to seek help and get a four-wheel drive vehicle which is capable of taking her through the rough terrain and poor road network so that she can rescue her daughter Aphiwe? She has made more than five attempts and failed to reach St Theresa Hospital in Chirumanzu. Zanu PF, considering the existing autocratic political conditions. I further argued (in another article) that, Mr Chamisa had adopted a narcistic, fascistic and individualistic approach to the struggle at a time when the struggle required a collective approach, and this had severely weakened the opposition ahead of the crucial 2023 election. Yes, we cannot ignore the fact that the opposition is operating in a severely repressive environment. My point is that people can mourn all they want about that, but nothing will change until they decide to put in place a leadership (in opposition) which meets the demands of the existing political realities and moves the country forward. What is needed is a leadership that is capable of building a strong and united opposition movement which can wrestle power from Zanu PF, under the existing autocratic conditions. Therefore, a critical question which needs to be discussed is what kind of an opposition leader does the country need, given the realities of the existing autocratic political conditions? However, before making my submissions on this important question, there is a preliminary question that must be addressed. This question has arisen every time I have critiqued Mr Chamisa. Blaming the victim? Some have asked me this question: When I criticise Mr Chamisa, am I not blaming the victim? The answer to this question depends on who you identify as the victim in this situation. Whilst it is true that CCC has been on the receiving end of state repression, the victim is not Mr Chamisa himself. The victims are the foot soldiers within CCC who are being abducted, beaten, tortured and incarcerated. The victims are the families of these cadres who are left to fend for themselves when their bread winners are languishing in prison. Mr Chamisa remains safe in the background. I do not recall any moment that Mr Chamisa has led a single demonstration ever since he became CCC or MDC Alliance leader. The victims are the members of Parliament and councilors of CCC who use their money to campaign during elections because Mr Chamisa has centralised the management of party funds and is not accountable to anyone on the use of those funds. The victims are these members of Parliament and councilors who, after winning the elections (using personal funds), they remain vulnerable to being recalled from Parliament because Mr Chamisa has failed to create a solid institutionalised party. The victims are those officers of CCC who are deployed into certain positions and suddenly they are dumped by Mr Chamisa without any explanation because he is not accountable to anyone. The victims are the masses of Zimbabwe who have pinned their hopes on Mr Chamisa that he will lead them into a prosperous future and yet he continues to betray them because of his narcissist approach to politics and his disdain for collective leadership. Therefore, by criticizing Mr Chamisa, I am not blaming the victim. He is not the victim. I would argue that he is one of the biggest beneficiaries of the status quo. Rather, through these articles I am urging the real victims (Zimbabweans) to understand that under Mr Chamisa they have now become locked in a strategic cul de sac which they need to untangle themselves from as a matter of urgency. Zimbabweans are now victims of both Mr Chamisa’s unstrategic leadership and Zanu PF’s strategic autocracy. The only way out of this strategic cul de sac is to activate their agency and think critically outside of this binary Chamisa-Zanu PF box! To achieve this, Zimbabweans must reflect on the kind of an opposition leader they need. I offer my thoughts below: A visionary All leaders who successfully led their people through a large-scale political change or transformation process were visionaries. A visionary is a leader who is able to articulate not only a vision of what they want to achieve but also how they will achieve that vision. This is why Warren Bennis, a renowned scholar on leadership once said, “leadership is the capacity to translate vision into reality.” In the struggle for a democratic breakthrough, Zimbabwe needs CCC leader Nelson Chamisa Why Zimbabweans must urgently reflect on the opposition leadership question
Page 44 Reframing Issues World News NewsHawks Issue 151, 6 October 2023 an opposition leader who is not only able to articulate the alternative policies which he or she will implement if they get into power, but who is able to articulate to the masses how he or she will lead them towards achieving a change of government in the first place. Let us take for example, the struggle against apartheid in South Africa. The leadership of the African National Congress (ANC) was very clear on how they sought to conduct their struggle. Whilst they would not reveal the details of their strategies, they were able to inspire the nation through words and actions, towards a defined course of the struggle, at every given moment. It was their ability to steer the struggle in a defined direction which inspired the masses to support them through difficult and dark times. Do Zimbabweans know the course that Mr Chamisa is leading them in their quest for democratic change? As far as I recall, he has never been able to answer that question beyond assuring the citizens that “God is in it!” When asked about whether his party had a solid plan to counter attempts to rig the 2023 elections, his response was that he was going to win against all odds because “God is in it!” When the Zimbabwe Electoral Commission declared Zanu PF’s Emmerson Mnangagwa as the winner of the 2023 election, Mr Chamisa rejected the outcome and he declared that there would be a Southern African Development Community (Sadc) and United Nations scaffolded fresh election. But he was never able to articulate to Zimbabweans how he was going to lead them towards a Sadc scaffolded fresh election. Now that it has become clear that there is no fresh election that is going to be held in Zimbabwe until 2028, Mr Chamisa is now calling for a political settlement but again, he is unable to articulate how he is going to lead the masses towards achieving that objective. Zimbabweans have endured decades of socio-economic crisis, and they are up against an autocratic political system that appears to be enjoying a strong grip over the levers of the state. In such a context, what is needed is an opposition leader who is capable of inspiring the masses to dream again and to inspire them into action. The one thing that can inspire the masses to believe again that change is possible is if they have a leader who is capable of leading them towards a particular course of action. There is nothing wrong with using religious mantra as a way of mobilising certain constituencies. But certain religious mantras have a net effect of decimating civic agency. This is where Chamisa’s “God is in it” mantra, without any clear articulation of the way forward becomes dangerous, demoralizing and uninspiring. Even the most devout of Christians are now uninspired because they know that their God does not fail, and they also know what their Bible says about faith without action. Oliver Reginald Kaizana Tambo took over the leadership of the ANC at a very crucial time of the struggle against apartheid in South Africa. He was a devout Anglican pastor. Imagine him being asked how the ANC was going to lead South Africans to liberation and all he can say is “God has remembered South Africa. Help is on the way #God is in it!” Would South Africa have succeeded to dislodge the apartheid regime? Ideological clarity Historically, one of the biggest and fatal obstacles to Zimbabwe’s quest for democratic breakthrough is the absence of an opposition that is based on a clear pan African ideological grounding. The ideology which one chooses to adopt defines who becomes their allies. A struggle against autocracy cannot be achieved without the support of strategic allies, especially within the region. Strategic allies are individuals, groups, governments and political organisations who wield influence and power and are prepared to exert their influence and power in furtherance of the cause to end autocracy. For example, the Sadc region is strategically important in resolving the Zimbabwean question. I certainly do not believe that Sadc is a toothless organisation when it comes to resolving the Zimbabwean question. We owe our current Constitution and some of the progressive electoral reforms we now have to Sadc’s intervention between 2006 and 2013. The challenge is that the Zimbabwean opposition in its current shape and form does not have strategic allies within the Sadc region. Though to a limited extent, under Morgan Richard Tsvangirai, the opposition succeeded to make some inroads in building allies within the Sadc region. This was partly because the opposition under Morgan Tsvangirai identified itself as a labour movement, and thus was able to strike a code with powerful organisations such as the Congress of South African Trade Unions (Cosatu) and other labour unionists in the Sadc region and across the world. Under Mr Chamisa, the ideological identity of the Zimbabwean opposition (CCC) is unclear and as a result, CCC is an isolated organisation both regionally and internationally. Indeed, governments in Sadc are concerned about the immigration crisis, which is directly linked to the unresolved Zimbabwean crisis. However, the immigration crisis on its own is insufficient to persuade them to render their support to the opposition in Zimbabwe if they do not ideologically trust its leader. In 2008, Morgan Tsvangirai won the Presidential election, but Sadc did not trust him. They rather facilitated a Government of National Unity, as a way of stabilising the socio-economic situation while allowing Zanu PF to renew and reset itself. It appears that they would rather assist Zanu PF to renew itself and stabilize the economy rather than supporting the opposition to take over. They simply do not trust the opposition. In this context, the Zimbabwean opposition needs a leader who is ideologically grounded. Religion is not an ideology and is insufficient to enable an organisation to build the necessary alliances that are capable of exerting enough pressure and influence to facilitate a democratic breakthrough in Zimbabwe. Embracing collective leadership Authoritarian regimes can never be dismantled by one person no matter how brilliant, energetic or popular that person is. Alone, Nelson Mandela could never succeed to bring democracy to South Africa notwithstanding his popularity as a leader, both locally and internationally. Comandante Fidel Alejandro Castro of Cuba could not succeed on his own to bring down Batista’s dictatorship. These leaders, worked through and with other groups and that is what made it possible to achieve their political goals. In order to succeed in its quest for a democratic breakthrough, Zimbabwe needs an opposition leader who is capable of uniting people. Under Mr Chamisa it is impossible to unite people from diverse backgrounds precisely because he has chosen to create a party which essentially functions like a cult. Mr Chamisa has consistently refused to institutionalise CCC. He runs his party through rallies, without any formal structures and without a constitution. He has not been elected by anyone into his position. Basically, he is not accountable to anyone except a group of few friends who hold their (informal) positions at his pleasure. He makes decisions based on what he believes he is hearing from God. These are signs of a leader who is not committed to democratic principles but may also be a religious fundamentalist. Of course, in both the 2018 and 2023 elections people voted for him because he was the only option they had outside of Zanu PF. Beyond attracting protest votes (courtesy of Zanu PF’s misrule), Mr Chamisa is unable to unite people because of his lack of commitment to democratic principles and his disdain for collective leadership. Zimbabwean opposition is in need of a leader who is able to bring together various interest groups to the decision-making table. There is need for a leader who can work with and through others, including those whose views are divergent to his. There is a lesson we can learn about Nelson Mandela. When he was released from prison and he took over the leadership of the ANC, he had to work with Thabo Mbeki who had been the defacto assistant to President Oliver Tambo. Several biographers including Mark Gevisser and Pieter du Toit have reported that Thabo Mbeki was not Mandela’s favorite and the two held divergent views on several issues. However, Nelson Mandela did not only work with Thabo Mbeki in the ANC but also appointed him as his Deputy President upon winning the elections in 1994. This is because Mbeki was a strategist and an exceptional diplomat—the very skills which Mandela needed in order to succeed as a leader. There are several thought leaders whom Mr Chamisa has marginalised within CCC, simply because they hold views that are divergent to his. Strategic thinker Successful political campaigns require leadership which thinks strategically and long term. In the Zimbabwean context, the opposition is up against not only a vicious political system but one that is also manned by very shrewd operatives. They can be clumsy here and there, but they are always planning more than ten steps ahead of the opposition. Sensing Mr Chamisa’s gullibility, the Harare regime targeted him with false intelligence in order to give him false comfort in the lead up to the 2023 general election. False prophets were dispatched by the regime to assure Mr Chamisa that he did not have to do much as his victory was guaranteed by God. Political emissaries were also dispatched by the regime to create an impression to Mr Chamisa that the regime was in a panic mode and certain elements (within the regime) would protect his election victory. This partly explains why Mr Chamisa went into the 2023 election fully aware that it was never going to be a fair game, but he never had a counter-rigging plan and neither did he have a clear plan on how to respond if the election is stolen. After Mr Emmerson Mnangagwa was declared winner, it was very clear that Mr Chamisa was stunned and did not know how to respond other than to insist that his victory had been stolen even though “God is in it”. A strategic thinker would never have participated in that election without a solid plan at least to gather evidence of election theft and a plan on how he would respond in the event that the election outcome is manipulated. Against all manner of counsel, Mr Chamisa is still insisting on running his party alone without formal structures and without a constitution. He claims that he has secret structures whom he works with across the country. He calls these structures “wapusa wapusa” — a very strange name in the Zimbabwean context. Wapusa Wapusa is a religious cult which is notorious for conducting its worship services in the dark whilst congregants are naked and having sex orgies. The literal meaning of wapusa in English is “stupid”! From a political marketing point of view, it is very unstrategic for Mr Chamisa to describe his party as “Wapusa Wapusa”, especially considering that he claims to have been anointed by God to lead Zimbabwe. Which God does Wapusa Wapusa worship? But there is something even more unstrategic about running CCC using the Wapusa Wapusa model. Being a secretive party of unelected people, it means that anyone can claim to represent the party precisely because there are no known structures or rules and no one (including Chamisa himself) can claim to be the legitimate leader. His claim over the CCC throne is as good as anyone’s claim because he has not been elected or appointed by anyone. It will not surprise me if any random group of people organise a CCC congress and purport to elect a new leadership which then will claim to be the legitimate party leadership with the right to receive State funds under the Political Parties Finance Act. Do not say I did not warn you! Already, there is a Mr Sengezo Tshabangu who has written to Parliament purporting to recall some of the CCC legislators, claiming to be acting on behalf of CCC. It is likely that this matter will end up in the courts of law. Should this happen, what will Mr Chamisa do, given that he has taken a position that he will not be seeking the intervention of courts because they “are all captured”? Conclusion The struggle for democracy must be a struggle of the people rather than a struggle of one person. However, leadership matters. The quality of a leader the people have will determine whether they will succeed in their struggle or not. Zimbabwe needs an opposition leader who embraces collective leadership. Mr Chamisa believes he can dislodge Zanu PF alone because he is popular. Zimbabwe needs an opposition leader who is capable of leading the masses from the front and along a defined course of action. The way forward for the struggle is unclear under Mr Chamisa’s leadership. Zimbabwe needs an opposition leader who is ideologically grounded. Beyond what appears to be religious fanaticism, Mr Chamisa’s ideological identity is unclear. The struggle against Zanu PF autocracy requires a leader who is a strategic thinker. Mr Chamisa is a mere populist whose decisions are in many cases short sighted. Frantz Fanon said “Each generation must, out of relative obscurity, discover its mission, fulfil it or betray it”. It is time that men and women of valour and wisdom rise to the occasion and step up to the call of leadership, and hopefully when this happens Zimbabweans will be able to notice and render them their support, to overcome dictatorship, secure a democratic breakthrough and move the country towards a better future. *About the writer: Dr Justice Alfred Mavedzenge is a constitutional lawyer committed to the building of democracy in Zimbabwe and Africa. He wrote this article in his personal capacity.
NewsHawks Reframing Issues Page 45 Issue 151, 6 October 2023 Book Excerpt from: In Search of the Elusive Zimbabwean Dream, Volume III (Ideas & Solutions) PROFESSOR ARTHUR G.O. MUTAMBARA LET us go back to Robert Mugabe. His predisposition to tribalism is also picked up early on by Zipa commanders. Wilfred Mhanda (ZIPA Political Commissar), in his memoirs — Dzino: Memories of a Freedom Fighter — has the following to say: “Mugabe’s tight responses and his unyielding, nay autocratic, demeanour led us to wonder about his suitability as a leader. In addition, there were small breaches of military etiquette that puzzled us. For example, he called Rex Nhongo by his home [Zezuru] name — Mutuswa. He also appeared to display ethnic tendencies by indirectly enquiring where particular senior commanders came from, even though it was part of the strict security protocol, upgraded to a disciplinary code, which made us stick to noms de guerre. We saw ourselves first and foremost as Zimbabweans, regardless of ethnicity.” Another ZIPA commander, Parker Chipoyera, confirms Mugabe’s tendency and affinity for tribal machinations. In an interview titled ‘Mgagao Declaration changed political dynamics’ with Zimbabwe’s weekly newspaper — The Sunday Mail — on 27 October 2019, Chipoyera says: “At one time we had a meeting with Mugabe at Chimoio, and it fell short of turning bad. Mugabe had his problems along tribal lines ... During that meeting, problems arose after Mugabe asked where we came from. Webster Gwauya stood up and replied: ‘You want to know where I come from, is this not the information that is needed by Smith so that he sends his people to torment our relatives.’ We all agreed with Gwauya that we would not be led into identifying ourselves on tribal grounds.” Beyond the tribalism predilection, the ZIPA commanders have other serious reservations about Mugabe as a leader, right from the beginning of their interactions with him. In fact, they start thinking he is worse than Ndabaningi Sithole. They are in a quandary, as Mhanda narrates in his erudite and gripping memoir: “However, the most disturbing aspect of all was Mugabe’s reclusiveness, his reticence, the failure to open up to us, while apparently erecting a barrier around himself that barred any more informal approach or discussion. All the other nationalist leaders we had met, such as Ndabaningi Sithole, Herbert Chitepo and the other members of Dare, had been more approachable. He seemed unable to relax as Tekere had done during his visit to the camps a month earlier. It is no wonder that within a few days, most of us had formed a negative opinion of him, to the extent that even though we had profoundly disagreed with Sithole, we thought Mugabe lacked the leadership qualities we had seen in the former.” Hence, after their own interactions with Mugabe, the ZIPA commanders now feel that, in fact, Samora Machel was right about Mugabe’s problematic disposition and inadequacy as a leader. However, they are not sure what to do next. Furthermore, they cannot rely on Rex Nhongo (their leader — ZIPA overall Commander) with respect to this dilemma. On the recommendation of ZIPA, at the beginning of September 1976, Machel releases Mugabe and Tekere from banishment in Quelimane and accommodates them in a Maputo hotel. A key issue emphasised by ZIPA was unity with ZAPU to avoid future instability in independent Zimbabwe. However, Mugabe and Tekere simply refuse to endorse this view. Specifically, Mugabe openly declares: “We cannot share the spoils of the war with ZAPU as ZANU had singlehandedly shouldered the burden of the fighting.” It is 1976, and Mugabe is speaking as if the war has already been won. In an interview with the Helen Suzman Foundation in October 2000, Mhanda summarises his view of Mugabe: “Gradually, of course, we realised that we had made a terrible mistake. I now greatly regret it ... He [Mugabe] was arrogant, paranoid, secretive and only interested in power. He did not want unity at all since he was scared that Joshua Nkomo, as the senior African nationalist, would take over a united movement. He dissolved ZIPA and abolished all the joint organisations between the liberation movements, which was very upsetting for those of us who had worked hard for unity.” Needless to say, there is a major stand-off rooted in intensely bad blood between Mugabe and ZIPA as the Geneva Conference beckons in 1976. In our discussions, Mugabe speaks fondly of this conference, held from 28 October to 14 December 1976, as “a great opportunity to regroup and expand the party – ZANU”. It is clear that he does not see the Geneva Conference as a potential breakthrough meeting on Zimbabwean decolonisation. In fact, to Robert Mugabe, successful resolution of the national question is not desirable at all in 1976! To him, the Geneva Conference is a godsend Machiavellian moment to reorganise ZANU while asserting and projecting himself as its leader. Moreover, this gathering is his first international conference as leader of a major political party, albeit under disputation from both ZIPA and Sithole. Of course, freedom and independence for Zimbabwe must wait until he has consolidated his political position. The irony of it all escapes Robert Mugabe that while he is busy feuding with ZIPA with the newly acquired tacit support of Samora Machel, the Geneva Conference is a ZIPA product. “ZIPA had effectively crushed the 1975 détente machinations that had so dubiously brought the war to a halt, and re-started the war, propelling it to levels never before experienced in Rhodesia.” This ZIPA military surge generates serious concerns among the Western powers, SA and the Rhodesian regime, leading to a new initiative to stem the tide of revolution – the Geneva Conference of 28 October to 14 December 1976. For them, the consequences of an outright victory in Rhodesia would “leave South Africa exposed and threaten the West’s strategic interests” in Southern Africa and the rest of the continent. Clearly, ZIPA’s military successes had triggered the Anglo-American initiative. Mugabe asserts that Nyerere despised him and only warmed up to him after Zimbabwe’s independence in 1980. This is corroborated by the events at the Frontline States’ Summit on Zimbabwe, held on 5 September 1976 before the Geneva Conference, as outlined by Wilfred Mhanda: “Nyerere then turned to ZIPA, saying it was their efforts that had forced the Rhodesians to accept Anglo-American negotiations. He then posed the question as to who among the nationalists identified with and supported ZIPA’s efforts. Everybody present [Nkomo, Sithole, Muzorewa, Mugabe], except Chikerema, claimed responsibility for ZIPA’s successes ... Nyerere rubbished all the claims rather humorously, but he reserved the harshest words for Mugabe, reminding him that both ZAPU and ZANU were no longer legal entities in terms of the Lusaka Unity Accord. Mugabe then argued that they had, however, fathered a legitimate child in ZIPA. Nyerere then asked him a pointed question: ‘Who formed ZIPA?’ Mugabe attempted a long-winded answer. Nyerere would have none of it and cried out in irritation, ‘I don’t want a tactical answer. Who formed ZIPA?’ Mugabe, humiliated, was forced to retreat into his shell …” Julius Nyerere believes that Samora Machel and himself had fathered ZIPA after being approached by ZANLA and ZIPRA cadres asking for support to restart the war. The two leaders saw it as a third force. While that acrimonious Summit meeting ends the debate about ZIPA’s parentage, it enflames and amplifies Mugabe’s hatred for the ZIPA commanders. Thereafter there is a further meeting between Mugabe (together with the recently released Dare leaders) Former deputy prime minister Professor Arthur Mutambara Mugabe, ZIPA and Mujuru
Page 46 Reframing Issues World News NewsHawks Issue 151, 6 October 2023 and the ZIPA leadership. Mugabe’s view is that “now that the Dare members were out of prison, ZIPA had to disband.” Obviously, the members of the ZIPA Military Committee openly and vigorously disagreed with this position and defended ZIPA’s continued existence. According to Mhanda: “Rex Nhongo [Mujuru] hardly said a word and sat motionless through that meeting. It was clear that he was having his own consultations with Mugabe behind our backs.” Hence, for ZIPA, the die is cast at the Geneva Conference of 1976. The Mujuru, Mugabe and Tongogara alliance is established, and the plan to neutralise the ZIPA commanders is hatched there in the snowy Swiss city. While there was no breakthrough at the Geneva Conference, with its end, intrigue and manoeuvring ensue in ZANU as the strategy to destroy ZIPA is operationalised. Top ZIPA commanders are sent on various missions, such as former Yugoslavia, Egypt, and China. Meanwhile, Mujuru and Tongo go straight to Mozambique to work out the mechanics of controlling the fighters and neutralising the ZIPA commanders. The preceding narrative is buttressed by a fascinating and insightful anecdote in my discussions with President Mugabe on the ZIPA contradictions, the final demise and defanging of ZIPA on 18 January 1977, and Solomon Mujuru’s betrayal of his ZIPA comrades. Mugabe is very agitated when he speaks about ZIPA. He says: “Edgar Tekere and I had a torrid time with that lot. After the ZANU Dare leadership and most of Josiah Tongogara’s High Command were released from detention in Zambia, the ZIPA commanders were denying the freed ZANLA High Command access to the guerrilla camps, and even demanding that leaders of Tongogara’s stature had to reapply to join the party. How absurd? At [the] Geneva Conference, they did not want to be identified as ZANU and were moving around consorting with every delegation. We had to neutralise them — the overly ambitious ZIPA upstarts. Solomon Mujuru, who was the head of ZIPA as the overall commander, was our spy among the ZIPA officials. They had no idea what was coming their way — those juvenile revolutionaries. Mujuru used to tell us all their plans and activities. He was our spy among them! Consequently, it was quite easy and effortless for us to crush them at the appropriate time — an opportune moment. Working with Josiah Tongogara, with the support of President Samora Machel, our strategy was to isolate and save a few of the ZIPA top commanders and then arrest the rest. Dzinashe Machingura (popularly known as Dzino) — the ZIPA Political Commissar — and Parker Chipoyera — the ZIPA Head of Training — were some of those we chose to save. Still, they rejected our offer and voluntarily presented themselves for arrest. Stupid fellows, those two! How do you opt to go to jail and not continue with the liberation efforts? Well, we said: ‘You can go and rot in jail. It is your loss. The struggle continues!” On his part, General Solomon Mujuru, during one of our many detailed conversations, explains how he experienced Samora Machel’s animosity towards Mugabe. He proudly narrates how he intervened to enable Mugabe’s ascendancy: “With most members of both the ZANU Dare and the ZANLA High Command in prison in Zambia, I was the most senior ZANLA commander at large. I had escaped from Zambia into Mozambique, and we put together the ZIPA military structure with our colleagues from ZIPRA. One day I was summoned to Samora Machel’s office, who demanded in his typical military style: ‘Who is your leader in ZANU?’ I said: ‘It is Robert Mugabe.’ He spat in my face, gave me a handkerchief to wipe myself and shouted: ‘Get out of my office!’ I am shocked beyond belief. On my way out, I had a brief chat with his Personal Assistant, who calmly advised me: ‘President Machel is quite close to Ndabaningi Sithole. Moreover, he cannot stand Robert Mugabe. When you next talk to him, drop that nonsense about Mugabe being your leader.’ As it turns out, a week later, I was called back for another meeting with President Machel. Just like before, he demanded: ‘Who is your leader in ZANU?’ I was wiser this time. I said: Our leader is Ndabaningi Sithole. However, as we execute the armed struggle, we will work with Robert Mugabe, but thereafter we will hand over the leadership to Ndabaningi Sithole. Samora Machel looked at me with intense and glaring eyes and blurted out: ‘That is better!’” Mujuru goes further to boast about his role and exploits in installing Robert Mugabe at the head of ZANU, making him a key leader in the liberation struggle for Zimbabwe. “I m- -a-de Robert Mug-a-be,” he characteristically stammers with a mischievous smile. He feels that Mugabe owes him and must be eternally grateful. Mujuru continues with his fascinating narrative to me: “After that successful meeting with Machel, I went on to feverishly organise meetings and platforms for Robert Mugabe so that he could shine and distinguish himself as a leader. Unongokazivaka Robert kanogona kutaura! (As you know that sly chap — Robert — is quite articulate!) Slowly but surely, both Samora Machel and Julius Nyerere warmed up to Mugabe. As they say, the rest is history. I must emphasise that ndini ndakakarongera bhora rose kamupfana aka (I am the one who made that ‘small boy’ get to where he is today).” With that, he bursts into controlled giggles as he playfully slides into his seat as if to hide from those around. It is quite hilarious but poignant that I am getting this vivid narration at an official event at the National Heroes Acre, where Mujuru and I are sitting in the front row with Robert Mugabe, a few seats away from us. Well, well, well. That is Solomon Mujuru. They do not call him the Kingmaker for nothing! Let us go back to the day ZIPA is decimated in Mozambique — 18 January 1977. Wilfred Mhanda confirms Mugabe’s version of events, Mujuru’s treachery and the betrayal of ZIPA by Samora Machel. He describes the purges of that fateful day when Tongogara reads out the names of the ZIPA commanders to be arrested: “Neither my name nor those of Parker Chipoyera and Akim Mudende, two other members of the Military Committee, were read out ... I could now see why Nhongo had left for the camps early that morning. He had been sent to pacify the fighters ahead of the arrests and could only have been complicit in the treacherous scheme to arrest the ZIPA commanders – his colleagues. The next day in a meeting with the reconstituted Central Committee, Mugabe offers to work with the three key commanders who had not been arrested. Mhanda and Chipoyera reject the gesture in an offhand but emphatic manner. They tell Mugabe that they could not accept his offer to cooperate. They call on him to release the [arrested] commanders and said that if they really believed that there had been a serious breach of insubordination, then they should arrest the three top ZIPA commanders — Rex Nhongo, Dzinashe Machingura and Webster Gwauya — and release their subordinates. Failing this, they posit that they would rather join the arrested commanders than work with Mugabe. Mhanda is adamant about the principled position that he took. He could not allow cadres that he trained and led to be selectively and subjectively victimised while he is spared. He volunteered to be imprisoned. In my conversation with him, Mhanda further describes a scene where, later that evening, Josiah Tongogara tries to convince him to tactically abandon his colleagues temporarily. His view is that the ZIPA comrades have not done anything wrong. It was just power politics. He suggests that the ZIPA cadres would be rehabilitated soon. It is just a tactical move. In fact, Tongogara intimates that he does not trust the politicians and wants a soldier like Mhanda to be there within the party to watch his back. Mhanda put it to him that if he genuinely needed his support, then he should first secure the release of the detained ZIPA commanders. Tongogara is categorical that the arrested ZIPA commanders had not committed any offence and dismissed all Mugabe’s allegations against ZIPA, as political intrigue and manoeuvring in pursuit of power: “He [Tongogara ]believed that Mugabe would also turn against him, explaining that this was why he needed me as an ally. ... It was clear that Tongogara did not have the power to reverse the decision to arrest the commanders. His hands were tied. He literally shed tears as he pleaded with me [to cooperate with Mugabe], but I was unmoved.” So, there we have it. Mhanda stands firm in rejecting the offer to work with Mugabe, while Tongogara emotionally appeals to him to reconsider his decision. His efforts continue for the next two days and are complemented by ZANLA commander Vitalis Zvinavashe, but to no avail. Mhanda does not relent. He is determined to join his detained colleagues. His last day of freedom in Mozambique is 21 January 1977, and it is also the last time he sees Tongogara alive. As he (Tongogara) had predicted, Tongogara does have a fallout with Mugabe, and he does not set foot in independent Zimbabwe. What really happened between Mugabe and Tongogara? What was the nature of the contradictions between them? How did these differences manifest? More significantly, how did Tongogara die? These and many other intriguing and daunting questions are addressed in later chapters of the book. This is an excerpt from the book: In Search of the Elusive Zimbabwean Dream, Volume III (Ideas & Solutions) By Professor Arthur G.O. Mutambara. *About the writer: Professor Arthur G.O. Mutambara is the director and full professor of the Institute for the Future of Knowledge (IFK) at the University of Johannesburg in South Africa. From left: Former Prime minister Arthur Mutambara, the late Retired General Solomon Mujuru (third from left), former Vice-President Joice Mujuru and the late former President Robert Mugabe.
IBBO MANDAZA I: The context: OR Tambo's legacy THREE weeks ago today, this lecture was unceremoniously cancelled by the Secretary-General of the African National Congress (ANC), Fikile Mbalula. In an email letter on the 6th of September, a day before the scheduled lecture, Mbalula directed the head of the OR Tambo School, David Masando, “that the lecture should not proceed on Thursday 7th September, 2023.” The correspondence was copied to Cdc K. Motlanthe, Chairperson of the Board of the OR Tambo School of Leadership. Significantly, Mbalula was writing out of Harare where he had accompanied President Cyril Ramaphosa for Mnangagwa’s inauguration on 4 September. And so while Ramaphosa returned to South Africa soon after the inauguration ceremony, Mbalula and his entourage extended their stay for discussions with their Zanu PF counterparts. Speculation is rife as to the nature of the meetings between the ANC and the Zanu PF, with references to “cheque book diplomacy” (about which we will soon know more), but Mbalula’s email letter suggested that the discussions included the subject of the messy election in Zimbabwe on 23 August, 2023. And so I quote the sentence that was suggestive of the ANC being engaged with the crisis in Zimbabwe: "At this moment the leadership of the ANC is engaged in a number of delicate engagements regarding the situation in Zimbabwe. In this context, a public lecture, at this time, on what is clearly an ANC platform, would complicate these initiatives. We invite you to engage with us further on the detail of these matters, and the possibility of the lecture being held in future, in a different format, and on a different platform.” I am not sure, though I remain as suspicious, at the reference to a ”different format” and ”on a different platform.” Whatever the import of these words, it is clear that David Masondo and his comrades stuck to their guns, postponing the lecture as they have done, with the same title, format and platform. I am therefore pleased to be here as part of the assertion of academic freedom and a large response to those in our midst who dare try to muzzle the few corridors of intellectual and ideological discourse in post-liberation Southern Africa. In this regard, let me quote from one of the many comrades, at home and across the diaspora, who were outraged at Mbalula’s email letter which, thanks to social media, had gone viral within hours of its dispatch from Harare. Apologies, David, if I'm inadvertentl betraying confidences, but a mutual comrade confided in me and I'm likewise confiding in my audience, appropriately: “Good evening Cde David, I hope this message doesn't offend you. At any rate, I would strongly encourage you to stand fast against any interference with the OR Tambo School's total autonomy and power to decide who to invite to speak on any subject your institution deems appropriate. Any abdication of this principle would be a betrayal of the principles OR lived for and upheld. it is your board's responsibility to uphold this cardinal principle.” — Mavuso Msimang. I want to add here, how critical, and indeed most legitimate, that more and more of those of us who are from the ranks of the former liberation movements stand up and be counted, to inspire the younger generation, keep the flame of liberation alive, and remain a thorn in the flesh of those amongst us who have since gone rogue and constitute an embarrassment to the history and objectives of the liberation struggle. Yes, who will dare shut us up comrades? Who amongst them has that moral authority? Need I say more? And now to the topic of my lecture, after that very useful digression and an open challenge to those in our midst who have since gone rogue. The state of democracy in the Sadc region I will spend less on the elections per se and more about Sadc whose Election Observer Mission (SEOM) has at last plucked the courage to state the reality that has been the nature and content of the crisis In Zimbabwe over the last two decades. More significant in this regard is the extent to which all this has exposed the cowardice of many of the current leadership in Sadc, while providing this opportunity to remind all of us of the origins and mandate of the regional body itself. In doing so, to prompt Sadc to take on its responsibility in the face of the crisis in Zimbabwe, convene the Extraordinary Summit as it has done several times before over the four decades of its existence. For, we have to remember that Sadc was born out of the liberation struggle in Southern Africa, the successor of the FrontLine States that were the backbone and rear guard of the struggles in Angola, Mozambique, Zimbabwe, Namibia and South Africa, and today, the custodian of peace, security and stability in the sub-region. II: THE 23 August election in Zimbabwe: the unending legacy of disputed elections Understandably, the Sadc Election Observer Mission Report (SEOM) on the 23rd of August harmonised election in Zimbabwe has taken centre stage and refuses to go away. But it was not the only Observer Mission Report that returned a negative verdict on the poll. There are the European Union Observer Mission (EUOM), Carter Centre, Commonwealth Observer Group (COG) and African Union (AU-Comesa) reports. Although there has been little or no reference to them, the ANC, Swapo, Frelimo, CCM (Tanzania), MPLA, Malawi Congress Party (MCP) and the Botswana Government, also dispatched observer missions to Zimbabwe. There is no guessing why these observer mission reports have not been made public; but none have yet contradicted the import of the SEOM which has clearly left the authorities in Harare embarrassed and wounded, while most of the Sadc member states, and indeed the AU generally, appear to have acknowledged its findings by neither congratulating Mnangagwa nor attending his inauguration. President Ramaphosa In particular has made some clumsy statements on the subject, at the risk, states an observer on social media, of “breaking the rules of procedure and undermining the authority of Sadc by taking a position on the Zimbabwean issue before the region decides (at the The state of democracy in the Sadc region: A reflection on the national elections of Zimbabwe NewsHawks Reframing Issues Page 47 Issue 151, 6 October 2023
Page 48 Reframing Issues World News NewsHawks Issue 151, 6 October 2023 Extraordinary Summit that appears inevitable).” In this regard, sections of the media have caricatured Ramaphosa’s position on Zimbabwe. For example, Business Day of the 21 September 2023 had this very suggestive cartoon on “Premature Congratulations” : with Ramaphosa stating that “The Zec made a declaration and on that basis we issued our congratulations to President Mnangagwa;” and on the side of it: “This Just In: EU to withdraw US$5 million financial aid to the Zimbabwe Electoral Commission (Zec) due to election irregularities and lack of transparency.” Nonetheless, Ramaphosa’s stance on the recent elections in Zimbabwe is welcome relief to the authorities in Harare, not least his comments that no election is perfect nor without challenges (“ even in the USA…”). But, surely, how does one ignore the stark reality that Zimbabwe has been the sick man in a region--particularly in South Africa itself — in which free, fair and credible elections are the order of the day, where ruling and opposition parties can interact, either in business or jest, as fellow citizens of one country? By contrast, the Zanu PF state in Zimbabwe has since Independence treated opposition parties as enemies to be vanquished: whether it was Joshua Nkomo and Zapu, Edgar Tekere and Zum, Morgan Tsvangirai and MDC, and now Nelson Chamisa and CCC. It has jailed without trial (political) prisoners like Job Sikhala and Jacob Ngarivhume, manipulates the delimitation report and the voters roll, and has virtually captured to itself the judiciary and the law enforcement and security apparatus. As Blade Nzimande observed in his remarks on a Zanu PF that had by 2000 since lost the very forces that constituted it during the struggle: “Now you know, comrades, when we went to Zimbabwe….. as part of the South Africa Communist Party fact finding mission…… When we engaged with our Zanu Pf comrades everybody was the enemy: ZCTU was the enemy, professionals, academics, everybody! But we asked, how come comrades all these forces you are saying are enemies, were they not part of the victorious forces led by Zanu PF on the victory of your struggle in 1980? What has changed? Zanu PF has lost the middle classes, has lost the professionals and has lost many urban-based organisations; it has become a rural party because of the mistakes they were making. Now the comrades are denying that there is a problem . There is a danger once liberation movements begin to lose power or sense that they are losing power — they start doing a lot of funny things. The first thing they start doing is coming up with 'radical' concepts. Mugabe lost a referendum and started a 'radical' land reform. They took land anyhow… and if they do not succeed, they unleash the security forces on the population." Indeed, both the electoral process over the last year and the poll itself on 23 August 2023, were part of a major security operation the likes of which has not been seen before in Zimbabwe. Not to mention again the point that every election since 2000 has been rigged and/or ended in dispute. As Nigerian activist Aisha Yesufu stated recently; “Until rigged elections are treated in the same as coups, democracy will continue to be in danger." Clearly, the 23 August 2023 election is in serious dispute and joins the series of "coups" (not excluding the military one of November 2017) . The very antithesis of democracy itself, and renders the electoral process farcical, just a mechanism through which the securocrat state seeks to renew its illegitimate mandate, especially and significantly with respect to the presidential poll. As we have pointed out before, by all accounts, Robert Mugabe lost to Morgan Tsvangirai in the presidential polls of 2002, 2008 and 2013. Closer scrutiny of the 2018 elections would appear to confirm the view of a member of analysts that Emmerson Mnagagwa likewise, lost to Nelson Chamisa. The security operation — including the deployment of the shadowy Faz and the calculated delay in the supply of ballot papers in Harare and Bulawayo on polling day, with many polling stations securing these well into the night of 23rd August and even on the following day 24th of August - that accompanied both the electoral process and polling day itself, should leave no one in any doubt as to the extensive rigging that underpinned Mnagagwa's wafer-thin "victory" of 52% (to Chamisa's 44%). Time will soon confirm, but we can confidently conclude that the election as a whole was neither, free, fair nor credible. A most depressing, if not cynical, feature about elections in Zimbabwe is the extent to which elections are so brazenly stolen and the voters rendered useless statistics. Deplorable! Depressing. More so when we hear would-be statesmen glibly dismissing a pattern that has become legion in Zimbabwe as mere "challenges" that can be addressed in the future. Not to mention the shamelessness with which one can stand before the UN and claim that such an election was free, fair and credible! III: What is to be done? The necessity and urgency of Sadc intervention in the Zimbabwe crisis. There was initially the obvious expectation that the Sadc Troika of Politics, Defence and Security Co-operation would be seized immediately with the Zimbabwe situation, especially given the verdict of the Sadc Election Observer Mission (SEOM) Report on 30 August 2023 (with the final version submitted on 4 September, just before Mnangagwa was inaugurated). Since then, there has been a discernible vaccilation and even debate as to the mandate of Sadc and its Organ. All this quite apart from the emotional outpourings out of government spokespersons — and other critics of Mumba, the head of SEOM — in Harare: crude attacks on the person of Mumba and even against President Hichilema. Most unprecedented and certainly bordering on serious diplomatic breach on the part of the Government of Zimbabwe towards its northern neighbour. Notwithstanding a statement from Ramaphosa on the very day he was defending his congratulatory message to Mnangagwa, that Sadc would have to meet and discuss the report, the retort out of Harare in particular and the region generally has been to throw doubt on the mandate of Sadc in these matters, let alone its capacity to do anything. Including the following statement, purportedly from the Sadc secretariat itself, but dubious given our understanding of the mandate of Sadc: "SADC ELECTORAL OBSERVATION MISSIONS ONLY observe elections. Sadc does not conduct elections in its member states but observes them. We then make recommendations. Understand the role of Sadc. When it comes to observing elections. Our mandate is only to observe and issue a report." All this might reflect on the lack of political will on the part of the current leadership of Sadc, but it is certainly the very antithesis of the mandate of the regional body’s Windhoek Treaty of 1992, its Organ on Politics, Defence and Security of 1996, and the Sadc Electoral Advisory Council (SEAC) which was formed by the Organ in 2005. To quote the latter. The Southern African Development Community (Sadc) Electoral Advisory Council (SEAC) was formed to transform election observation, the conduct of democratic elections and the prevention of electoral related conflicts in the Sadc region. Established in August 2005 in terms of Article 9(2) of the Sadc Treaty by the Sadc Summit held in Gaborone, Botswana, SEAC's broad mandate is to advise Sadc on matters pertaining to elections, democracy and good governance. The overall objective of SEAC is to contribute to the prevention of electoral related conflict in the Sadc region through the design and implementation of a conflict prevention strategy focused on each stage of the electoral cycle that outlines the specific contribution of SEAC. The proposal to establish SEAC resulted from a stakeholder workshop convened by the Sadc secretariat in Lesotho in 2004. Stakeholders recommended that Sadc form a mechanism that would not only guarantee the implementation of the Sadc Principles and Guidelines Governing Democratic Elections but also strengthen the capacities of Electoral Management Bodies (EMBS) and facilitate the work of the SADC Electoral Observation Missions (SEOMs). Following a comprehensive assessment of the workshop recommendations, the Ministerial Committee of the Organ on Politics, Defence and Security (MCO) recommended to the Heads of State Summit, the formation of SEAC. After SEAC's formation in 2005, the MCO adopted the SEAC Structures, Rules and Procedures in March 2009. SEAC was officially established in August 2010 at Maputo, Mozambique and inaugurated on 13 April 2011 in Gaborone, Botswana. According to the SEAC Structures, Rules and Procedures, the main objective of SEAC shall be to advise Sadc, through the MCO, on issues pertaining to elections and the enhancement of democracy and good governance. In addition to its main objective, the specific objectives of SEAC are: • To urge and encourage Sadc Member States to adhere to Sadc Principles and Guideline Governing Democratic Elections; • To encourage Sadc Member States to adhere to international best practices whenever they are holding elections; • To advise Sadc Member States on strategies and issues to enhance and consolidate capacity of EMBS in the Sadc Region; and • To encourage Sadc Member States to uphold and respect the independence and autonomy of Electoral Management Bodies. Of course, SEAC is derived from the provisions of the Sadc Treaty of 1992, and its overall objective of creating an integrated community of nations as part of the building blocs towards an integrated African Union. Implicit in all this is that member states necessarily forego part of their sovereignty in the interest of the larger whole. But those of us who were charged in 1996 with the responsibility to draft the protocols of the Sadc Organ on Politics, Defence and Security, were informed by these ideals of regional and continental unity, and the quest for a Common Foreign Policy, through which to prevent conflict, promote peace and stability and, if necessary, attend to, and deal with, an errant member state. We were aware, of what I referred to in 1998, on the occasion of the Sadc intervention in Lesotho, as the "hierarchy of powers" implicit in all regional and global organisations. This is the extent to which some member states therein wield more power than others, tend to be politically and economically hegemonic in a given region, or lend themselves into the so- called permanent members of the UN Security Council (USA, China, Russia, Britain and France). In short, there has always been the inplicit acknowledgment that South Africa is the hegemon in Sadc. Of course, Zimbabwe, particularly under Mugabe as the latter tried to challenge Mandela as the obvious giant that he was, has always tried to play the card of precedence or seniority, as the case may be. It was this untidy relationship between Mandela and Mugabe, especially over the crisis in DRC in 1998, that led to the Defence Pact, signed on 31 July that year, sponsored by Zimbabwe and including the three other members, namely Angola (who were equally perturbed at Mandela's hosting of Savimbi in Pretoria), Namibia and the DRC itself. Suffice it to state that this Defence Pact, although designed within the ambit of the Sadc Organ on Politics, Defence and Security of 1996, nevertheless constituted a serious threat to Sadc itself, at least to the extent to which it was meant to warn Mandela’s South Africa, which was a loudly opposed to the intervention in DRC and whose overtures to Savimbi and Mobutu were regarded as offensive on the part of Angola and DRC respectively. In retrospect, both these developments and the precedents in which Sadc had an interventionalist role, would have helped to grow the Organ on Politics, Defence and Security, and informed and underpinned SEAC itself. The more reason why Sadc itself, the member states therein, and the current heads of state of the regional body, should be reminded of their respective responsibilities in the face of the disputed elections in Zimbabwe. Indeed, we need to list the precedence in terms of Sadc's intervention in the face of similar cases over the years, if only to highlight the capacity and responsibility of the regional body in the face of such crises: The Final Phase in the Liberation of Namibia and South Africa: working as both Front Line and Sadc states, the latter were invaluable in both the isolation of apartheid South Africa and the enforcement of global sanctions against Pretoria, whilst providing support to the liberation movements — including the Black Consciousness Movement (BCM) and the United Democratic Front (UDF) — in Namibia and South Africa. The Rome Accords for Peace in Mozambique (1990) : under the auspices of Sadc, and as the leader of the country which had provided military support to Mozambique in its fight against Renamo, Robert Mugabe was a key factor in the Rome Accords which brought peace to the former Portuguese colony. The Lesotho crisis: September 1998 to May 1999: Sadc intervention through South Africa having to deploy military force to quell a crisis following a disputed election in that country. The DRC War: 1998 to 1999: with Angola, Zimbabwe and Namibia actively involved in supporting Kabila, the other Sadc countries like Tanzania, Zambia and Mozambique provided support in various ways at their disposal. Sadc intervention in the DRC: to state the least, Sadc, through its Organ on Politics, Defence and Security, has been engaged with the situation in the DRC since 2014 to the present. On 8th May 2023, a Summit of the 16-bloc Sadc agreed to deploy Sadc troops to the DRC, to help quail violence in the eastern Democratic Republic of Congo, where groups have terrorised civilians for decades. In fact, there has developed a possible combination of such Sadc forces and those of the East African Community troops from the three Sadc countries — Malawi, South Africa and Tanzania — have operated in eastern DRC for a decade under the United Nations peacekeeping force Monusco. Following a meeting of the Sadc Troika on Politics, Defense and Security on 8th May, 2023, and again on 11th July 2023, Sadc approved "the mandate, legal and operational instruments necessary for the deployment of the Sadc mission in DRC, that is SAMIDRC. To quote the communiquè: "This exchange between the sub-regional heads of state, opened by Namibia's Hage Geingob and chaired by Zambia's Hakainde Hichilema, followed several other meetings of the various Sadc bodies. On 4 July 2023, the organization's defense sub-committee met in Windhoek, Namibia, to discuss the technical details of this deployment, with the issue being raised again on 10th July at the meeting of
NewsHawks Reframing Issues Page 49 Issue 151, 6 October 2023 Sadc Troika on Politics, Defence and Security." Just yesterday, the Troika met virtually under the Chairmanship of President Hichilema of Zambia, together with Presidents Samia Suluhu Hassan of Tanzania and Hage Geingob of Namibia, on the deployment of Sadc forces to eastern DRC on 30 September, 2023. This is a 12-month mandate up to 30 November 2024, with possibly a South African Defence Force command and a budget of US$554 552 472. "This sum, which is subject to change and intended to cover the first 12 months of the operation, is based on the estimated needs of a workforce of around 5 000 people. In theory. It should cover the cost of the Sadc secretariat, the office of the head of mission, and, above all, the military components of the force as well as the equipment (African Report, 21 July, 2023)." All indications are that the Zimbabwe election issue, including the SEOM report, would have been on the agenda of the Troika meeting yesterday, but certainly to be dealt with in the not too distant future. Sadc intervention in Madagascar: After suspending Madagascar from Sadc in November 2009, the Extraordinary Summit of Sadc held in Sandton, South Africa, in June 2011, prescribed a roadmap on the basis of which the member state was re-admitted to the regional body in 2014. IV: Sadc and Zimbabwe Turning to Zimbabwe specifically. Sadc has had two Extraordinary summits on the country in less than two decades: • 28-29 March, 2007, -- Dar es Salaam, following the brutal and physical attacks by state-related agents on Morgan Tsvangirai and his lieutenants on 7th March 2007. So incensed was the region and the world at such barbaric behaviour that the Extraordinary Summit mandated President Thabo Mbeki of South Africa to continue to facilitate dialogue between the opposition MDC and Mugabe's Government, and report to the Troika. • 1 July 2008 - Sharma ElShaikh, Egypt. SADC/ African Union Summit Resolution on Zimbabwe,- following the disputed and Violent run-off election of June 2008. The Summit decided as follows: 1. To encourage President Robert Mugabe and the leader of the MDC Party Mr Morgan Tsvangirai to honour their commitment to initiate dialogue with a view to promoting peace, stability, democracy and the reconciliation of the Zimbabwean people. 2. To support the call, for the creation of a Government of National Unity. 3. To support the Sadc Facilitation, and to recommend that Sadc mediation efforts should be continued in order to resolve the problems they are facing. In this regard Sadc should establish a mechanism on the ground in order to seize the momentum for a negotiated solution. 4. To appeal to states and all parties concerned to refrain from any action that may negatively impact on the climate of dialogue. 5. In the spirit of all Sadc initiatives, the AU remains convinced that the people of Zimbabwe will be able to resolve their differences and work together once again as one Nation, provided they receive undivided support from Sadc, the AU and the world at large. V: What is to be done? An appeal and petition to Sadc to play its role in the face of another disputed election in Zimbabwe. We believe that Zimbabwe has again reached the Lancaster House moment, the occasion on which to get back to the drawing board, reflect on a difficult two decades of conflict and embark on the path towards a Comprehensive Political and Economic Settlement. Accordingly, on 7th September, 2023, a resolution of the combined meeting of the is a Sapes Trust and the Platform for Concerned Citizens (PCC) launched the following Petition to the Sadc Organ on Politics, Defence and Security Co-operation: Once again a Zimbabwean election fails the test of credibility. However, the 2023 harmonised elections have failed the test so comprehensively that even the reputable regional and international observers are for once are in agreement that this election has failed. The main opposition and many civil society organisations have condemned the election, as have many ordinary citizens. The only response can be to declare the elections null and void, but then what should be done? By any measure the Zimbabwean government since 2017 has shown no ability to reform, either politically or economically, and to create the conditions that could lead to an election that is free, fair, and credible. The coup in 2017 did not usher in a new dispensation but a continuation of the kind of governance that has led to the 2023 result. There needs to be new way to resolve the crisis that this election has now deepened further, and not in the way that the crisis of 2008 was managed. The way forward must be bold and innovative, recalling the manner in which the Rhodesian crisis was dealt with. This must require the following: • The establishment of an Eminent Persons Group, tasked with negotiating the establishment of a Transitional Government, composed of political parties and other major citizen groupings. • The negotiations must be broad-based, including political parties, civil society, churches, labour, women, and other citizen groupings. The Transitional Government should set up with a clear and specific set of reforms that must be achieved, which should include: • The resolution of the coup and the amendment to the Constitution allowing untrammelled military interference in civilian affairs. • Full adherence to constitutionalism, the rule of law, and human rights. • The reform of critical state institutions. • The stabilising of the economy, with a pro-poor emphasis. • The establishment of a sovereign fund to ensure the country benefits form Zimbabwe’s bountiful resources. Complete overhaul of all the election machinery and legislation to ensure that the election that follows the period of the Transitional Government will lead to an election that meets regional and international standards. This is the only way forward to resolve the crisis, and we call on all Zimbabweans, in the country and in the diaspora to support this petition, and we call on Sadc — through the Organ on Politics, Defence and Security — the AU, and the international community to support and scaffold this. Ibbo Mandaza and Tony Reeler Co-Convenors (PCC) By September, 2023, the petition has mobilised 80 000 signatures, with plans to officially elevate the document into the national programme on the back of a meeting, to be held in Harare on 5 August, 2023, in which the totality of civil society, trade unions, churches, professional and other lobby groups at home and in the diaspora - will press towards a Comprehensive Political and Economic Settlement in Zimbabwe. In appealing to both Sadc and the AU, the Petition is recommending the appointment of the Eminent Persons Group, possibly of Ellen Johnson Sirleaf of Liberia, Jakaya Kikwete of Tanzania and Kgalema Motlanthe of South Africa, as the facilitation and mediation agency through which Zimbabweans at home and abroad can find each other and hopefully have a traditional government, or something similar, and charged with a Political and Economic Reform Agenda before the next elections in Zimbabwe. In this regard, we have also solicited the support of the Coalition for Dialogue on Africa (CoDA), a joint venture of the African Union Commission (AUC), the Africa Development Bank (AFDB) and the Economic Commission for Africa (ECA), and chaired by President Obasanjo, to assist Zimbabwe in this dialogue towards a resolution of the crisis in Zimbabwe. And through the occasion of this Public Lecture, this is to appeal to the ANC and its government to pursue what Fikile Mbalula referred to in his email to David Masonda on the 6th of September, 2023, as the “delicate engagements regarding the situation in Zimbabwe.” If the latter objective was indeed the reason for the apparent “unceremonious” cancellation of this lecture on 7th September, to this day, then I plead with you all that the ANC Secretary-General be forgiven, in the sincere expectation that South Africa itself in particular, Sadc and the AU, are indeed engaged with the crisis in Zimbabwe. *About the writer: Professor Ibbo Mandaza is a Zimbabwean academic, author and publisher. He is co-convener of the Platform for Concerned Citizens (PCC) which has sponsored a petition tgat has been forwarded to the chair of the Sadc Organ on Politics, Defence and Security Cooperation, as well as to the chair of the AU and the international community in general. Mandaza presented this public lecture at the OR Tambo School of Leadership in South Africa on 28 September.
Page 50 Reframing Issues NewsHawks Issue 151, 6 October 2023 Bill George discusses how powerful people lose their moral bearings. To stay grounded, executives must prepare themselves to confront enormous complexities and pressures. BILL GEORGE IN recent months several high-level leaders have mysteriously lost their way. Dominique Strauss-Kahn, former head of the International Monetary Fund and a leading French politician, was arraigned on charges of sexual assault. Before that David Sokol, rumored to be Warren Buffett's successor, was forced to resign for trading in Lubrizol stock prior to recommending that Berkshire Hathaway purchase the company. Examples abound of other recent failures: Hewlett-Packard CEO Mark Hurd resigned for submitting false expense reports concerning his relationship with a contractor. US Senator John Ensign (R-NV) resigned after covering up an extramarital affair with monetary payoffs. Lee B. Farkas, former chairman of giant mortgage lender Taylor, Bean & Whitaker, in April was found guilty for his role in one of the largest bank fraud schemes in American history. These talented leaders were highly successful in their respective fields and at the peak of their careers. This makes their behavior especially perplexing, raising questions about what caused them to lose their way: • Why do leaders known for integrity and leadership engage in unethical activities? • Why do they risk great careers and unblemished reputations for such ephemeral gains? • Is this simply greed, as many have suggested, or is something deeper going on? • Do they think they won't get caught or believe their elevated status puts them above the law? • Was this the first time they did something inappropriate, or have they been on the slippery slope for years? In these ongoing revelations, the media, politicians, and the general public frequently characterise these leaders as bad people, even calling them evil. Simplistic notions of good and bad only cloud our understanding of why good leaders lose their way, and how this could happen to any of us. Leaders who lose their way are not necessarily bad people; rather, they lose their moral bearings, often yielding to seductions in their paths. Very few people go into leadership roles to cheat or do evil, yet we all have the capacity for actions we deeply regret unless we stay grounded. Self-reflection: A path to leadership development Before anyone takes on a leadership role, they should ask themselves, "Why do I want to lead?" and "What's the purpose of my leadership?" These questions are simple to ask, but finding the real answers may take decades. If the honest answers are power, prestige, and money, leaders are at risk of relying on external gratification for fulfillment. There is nothing wrong with desiring these outward symbols as long as they are combined with a deeper desire to serve something greater than oneself. Leaders whose goal is the quest for power over others, unlimited wealth, or the fame that comes with success tend to look to others to gain satisfaction, and often appear self-centred and egotistical. They start to believe their own press. As leaders of institutions, they eventually believe the institution cannot succeed without them. The leadership trap While most people value fair compensation for their accomplishments, few leaders start out seeking only money, power, and prestige. Along the way, the rewards — bonus checks, newspaper articles, perks, and stock appreciation — fuel increasing desires for more. This creates a deep desire to keep it going, often driven by desires to overcome narcissistic wounds from childhood. Many times, this desire is so strong that leaders breach the ethical standards that previously governed their conduct, which can be bizarre and even illegal. Very few people go into leadership to cheat or do evil. As Novartis chairperson Daniel Vasella (HBS PMD 57) told Fortune magazine, "for many of us the idea of being a successful manager — leading the company from peak to peak, delivering the goods quarter by quarter — is an intoxicating one. It is a pattern of celebration leading to belief, leading to distortion. When you achieve good results… you are typically celebrated, and you begin to believe that the figure at the center of all that champagne-toasting is yourself." When leaders focus on external gratification instead of inner satisfaction, they lose their grounding. Often they reject the honest critic who speaks truth to power. Instead, they surround themselves with sycophants who tell them what they want to hear. Over time, they are unable to engage in honest dialogue; others learn not to confront them with reality. The dark side of leadership Many leaders get to the top by imposing their will on others, even destroying people standing in their way. When they reach the top, they may be paranoid that others are trying to knock them off their pedestal. Sometimes they develop an impostor complex, caused by deep insecurities that they aren't good enough and may be unmasked. To prove they are not impostors, they drive so hard for perfection that they are incapable of acknowledging their failures. When confronted by them, they convince themselves and others that these problems are neither their fault nor their responsibility. Or they look for scapegoats to blame for their problems. Using their power, charisma, and communications skills, they force people to accept these distortions, causing entire organisations to lose touch with reality. At this stage leaders are vulnerable to making big mistakes, such as violating the law or putting their organisations' existence at risk. Their distortions convince them they are doing nothing wrong, or they rationalise that their deviations are acceptable to achieve a greater good. During the financial crisis, Lehman CEO Richard Fuld refused to recognise that Lehman was undercapitalised. His denial turned balance sheet misjudgments into catastrophe for the entire financial system. Fuld persistently rejected advice to seek added capital, deluding himself into thinking the federal government would bail him out. When the crisis hit, he had run out of options other than bankruptcy. It is lonely at the top, because leaders know they are ultimately responsible for the lives and fortunes of people. If they fail, many get deeply hurt. They often deny the burdens and loneliness, becoming incapable of facing reality. They shut down their inner voice, because it is too painful to confront or even acknowledge; it may, however, appear in their dreams as they try to resolve conflicts rustling around inside their heads. Meanwhile, their work lives and personal lives get out of balance. They lose touch with those closest to them̬their spouses, children, and best friends—or co-opt them with their points of view. Eventually, they lose their capacity to think logically about important issues. Values-centred Leadership Leading is high stress work. There is no way to avoid the constant challenges of being responsible for people, organisations, outcomes, and uncertainties in the environment. Leaders who move up have greater freedom to control their destinies, but also experience increased pressure and seduction. Leaders can avoid these pitfalls by devoting themselves to personal development that cultivates their inner compass, or True North. This requires reframing their leadership from being heroes to beingservants of the people they lead. This process requires thought and introspection because many people get into leadership roles in response to their ego needs. It enables them to transition from seeking external gratification to finding internal satisfaction by making meaningful contributions through their leadership. Maintaining their equilibrium amid this stress requires discipline. Some people practice meditation or yoga to relieve stress, while others find solace in prayer or taking long runs or walks. Still others find relief through laughter, music, television, sporting events, and reading. Their choices do not matter, as long as they relieve stress and enable them to think clearly about work and personal issues. A system to support values-centred leadership The reality is that people cannot stay grounded by themselves. Leaders depend on people closest to them to stay centered. They should seek out people who influence them in profound ways and stay connected to them. Often their spouse or partner knows them best. They are not impressed by titles, prestige, or wealth accumulation; instead, they worry that these outward symbols may be causing the loss of authenticity. Spouses and partners cannot carry this entire burden though. We need mentors to advise us when facing difficult decisions. Reliable mentors are entirely honest and straight with us, defining reality and developing action plans. In addition, intimate support groups like the True North Groups, with whom people can share their life experiences, hopes, fears, and challenges, are invaluable. Members of our True North Group aren't impressed by external success, but care enough about us as human beings and as leaders to confront us when we aren't being honest with ourselves. As Senator Ensign told his fellow senators in a farewell speech in May, "When one takes a position of leadership, there is a very real danger of getting caught up in the hype surrounding that status … Surround yourselves with people who will be honest with you about how you really are and what you are becoming, and then make them promise to not hold back… from telling you the truth." — Harvard Business School *About the writer: William W. George is an American businessman and academic. He is a professor of management practice, and a Henry B. Arthur Fellow of Ethics at Harvard Business School. President Emmerson Mnangagwa Why leaders lose their way