Price US$1 Friday 19 - 26 April 2024 NEWS NSSA board divided over US$10m ICT security deal Story on Page 5 NEWS Mnangagwa says he is related to CIO boss WHAT’S Story on Page 9 INSIDE SPORT If you settle for mediocrity, you ultimately produce mediocrity Story on Page 71 ALSO INSIDE Power crisis set to worsen Govt fails to pay Harare urban road contractors US$200m
BRENNA MATENDERE CONSTRUCTION companies working on some of Harare’s critical inner roads linking the New Parliament Building in Mount Hampden and the Beitbridge-Harare-Chirundu highway project – the trade and commercial gateway to the north from the south – have not been paid for their current works. They are owed a total of over US$200 million for different construction jobs which will cover 255 kilometres. The government pays contractors in local currency and United States dollars. It is supposed to have paid part of the total cost to allow them to do their work and meet timelines, but it has not yet done so. Failure by the government to pay on time has left construction firms struggling without adequate working capital to finance day-to-day operations and pay for expenses of the projects. The companies are already behind schedule as time flies. Informed industry sources told The NewsHawks that the five contractors involved in the inner Harare road networks rehabilitation project linking to the Beitbridge-Harare-Chirundu highway – Bitumen World, Fossil Contractors, Exodus Company, Masimba Construction and Tensor Systems – have not been paid. The five companies involved in the Beitbridge-Harare-Chirundu highway project, initially estimated to cost US$2.7 billion, are collectively rehabilitating the whole stretch, spanning 935km. The government says it is almost done with the 580-kilometre Beitbridge-Harare section and has now embarked on the 355km stretch which will cost US$550 million. Authorities now say the Beitbridge-Harare road will cost US$1 billion. There has not been a consistent costing of the project. It was split into sections. One contractor told The NewsHawks: “All companies which are involved in the Beitbridge-Harare-Chirundu project are also working on sections within the Harare City precincts and the linkages. But then the problem is that we haven’t been paid for current works. So we are struggling to pay for supplies of materials and other costs. “We have to pay engineers. Laying out a road project requires finding an area with the right infrastructure in place to support the weight of heavy equipment. “The cost of building a road depends on the materials used. For example, asphalt is a softer material that takes longer to level and requires greater maintenance. “And the cost of building a road also depends on the distance. There are also labour costs which vary depending on the location and the number of workers. We also have to pick up the tab of equipment such as dump trucks, bulldozers, and earthmovers. “There are many things involved. There are costs of design and planning. The cost of designing and planning a road project can vary depending on the complexity of the project and the number of professionals required. Contractors say they are struggling without working capital which is essential to build such projects. Working capital is the money needed to finance the day-today operations and expenses of a project. Another construction company senior executive said: “Without being paid, how do we pay our own contractors, labour and suppliers, costs, equipment and material purchases, overheads and administrative expense? There are also unexpected expenses and contingencies. “Having sufficient working capital ensures that payments are made on time, avoiding delays and penalties where applicable. Materials and equipment are purchased when needed, labour costs are covered, unexpected expenses are absorbed and projects stay on schedule, within budget and timelines. “The amount of working capital required for a road project depends on many things like size and complexity of the project. “For instance, the Mbudzi Roundabout project is more complex than standard roads; duration of the project, number of suppliers, labour costs and equipment expenses and contingency funds for unexpected expenses. It is important to carefully plan and manage working capital to ensure the successful completion of a road project. There is also the issue of fuel, which is urgent.” These projects are important for President Emmerson Mnangagwa, particularly due to the upcoming Southern African Development Community (Sadc) summit in August in Harare and authorities’ need to impress visiting leaders. Here are some of the Harare road construction plans: 1. At least 40 greater roads in and around the city have been lined up for massive construction and maintenance ahead of the 2024 Sadc summit scheduled to be held in Harare in August; 2. The Sadc preparatory mission engaged the government technical team in terms of preparations for hosting the 44th summit in August; 3. Zimbabwe shall be hosting the 44th Sadc Heads of State and Government summit in August this year. Cabinet also resolved to prioritise the rehabilitation and maintenance of Harare's road network in preparation for the Sadc summit. The resolutions include: 1. Declaration of state of disaster: Cabinet declared the state of Harare's roads a state of disaster, enabling the ministry of Transport and Infrastructural Development to expedite the rehabilitation process; 2. Emergency road rehabilitation: It approved the emergency rehabilitation of 40 selected roads in Harare, focusing on high-traffic areas and major routes; 3. Prioritisation of urban roads: The ministry of Transport was directed to prioritise the urban section of the Harare-Chirundu Road project, ensuring completion by 31 July 2024; 4. Additional funding: Cabinet approved additional funding for the road rehabilitation programme, ensuring adequate resources for the project's completion; 5. Inter-ministerial committee: An Inter-ministerial committee was established to oversee the road rehabilitation programme, ensuring coordination and expediting the process; 6. Private sector involvement: AuthorPage 2 News NewsHawks Issue 173, 19 - 26 April 2024 Minister of Transport Felix Mhona Govt fails to pay Harare urban road contractors US$200m
NewsHawks News Page 3 1ssue 173, 19 - 26 April 2024 ities encouraged private sector participation in the road rehabilitation program through public-private partnerships; 7. Community engagement: The ministry was directed to engage with local communities and stakeholders to ensure minimal disruptions and maximum cooperation during the rehabilitation process. While Mnangagwa wants the roads renovated urgently, his government has not yet paid amid fears that if contractors are given billions in local currency, they will go to offload that into the parallel market and destabilise the new monetary unit, ZiG, while stoking inflation. As a result, officials say the government through the Transport ministry will apply asphaltic concrete overlay on critical roads including Samora Machel (Jaggers to Kuwadzana roundabout), Dieppe roundabout – Glenara/Samora Junction – Glenara/ED Mnangagwa Road, Dieppe roundabout– Chiremba (through Braeside), Robert Mugabe/Rotten Row – Josiah Tongogara, Harare Drive Roundabout Jaggers – Lomagundi Road (selected sections), 4th Street (Simon Muzenda Street)/Robert Mugabe Junction to Tongogara Road, 4th Street (Simon Muzenda Street)/Robert Mugabe Junction to Tongogara Roads. Sadc summit road construction works include the urban section of the Harare-Chirundu Road project from Julius Nyerere Way to Westgate traffic circle (Sam Nujoma Street and Lomagundi Road), which is being rehabilitated, widened, and dualised. That section is being done by Fossil which will take the project all the way to Banket on the Harare-Chirundu road. Since the Sadc summit will be held at the new Parliament, the road to the National Assembly is being renovated by Bitumen. The company is also rehabilitating the road from Parliament to Mazowe Road. Exodus is working on the Mazowe Road up to Mvurwi turn off. The company is already doing the Harare-Kanyemba Road. It is also involved in the Harare-Chirundu road, just like it was on the Beitbridge-Harare road. Masimba and Tensor are also doing other relevant sections in the capital road networks linked to the Beitbridge-Harare-Chirundu highway. The rehabilitation works include street lighting and landscaping. Fossil asked to prioritise the works for completion on or before 31 July 2024. The Beitbridge-Harare-Chirundu highway covers the Beitbridge-Harare road which will cover 580km and eight toll plazas; Harare–Chirundu covering 355km and six toll plazas; and the Harare ring road comprising 59km with three toll plazas. Thus far, more than 400km of the 580km of the Harare-Beitbridge road have been constructed and 435km is now open to traffic. With the Beitbridge-Harare highway almost complete, the five contractors have now moved to the city's inner roads which link with the Harare-Chirundu road and the Harare-Kanyemba project. However, contractors are complaining that they have not been paid, constraining their operations. Transport minister Felix Mhona said the government was working well with contractors. “We're working well with all contractors, but if there are some who are disgruntled, I will be glad to know and hear their concerns.” Road rehabilitation along Julius Nyerere Way.
BERNARD MPOFU ZIMBABWE’s state sovereign wealth fund — Mutapa Investment Fund (MIF) — paid US$1.6 billion in Treasury Bills to acquire 35% of Kuvimba Mining House Ltd from a management consortium in the company valued at US$4.5 billion. Kuvimba holds valuable assets in precious minerals, base metals and energy group metals. It has vast gold, platinum, chrome, lithium and iron ore resources. Some of the mines under the group include Freda Rebecca, Shamva, Evington, Sabi and Jena (gold), Bindura Nickel, Sandawana, Zim Alloys and Great Dyke Investments, which lies on Zimbabwe’s mineral-rich Great Dyke belt. The government held a 65% equity stake in Kuvimba, but transferred it to MIF after it was established last year. So MIF now has 100% of the company in a move which seeks to end speculation about who its 35% beneficial owner was in the first place. Since its inception in 2020, Kuvimba was linked to local tycoon Kudakwashe Tagwirei, but he consistently denied having any shareholding or interest in the company. Asked by The NewsHawks if he was a shareholder in Kuvimba and whether he is part of the 35% stake disposal transaction, Tagwirei said: “I’m not part of Kuvimba and I have never been part of it. Ask MIF chief executive Dr John Mangudya about these issues. He should be able to explain to you.” Mangudya, who was Reserve Bank of Zimbabwe governor for a decade before taking over as MIF boss early this month, confirmed the transaction, but also said they bought the 35% equity from management, not Tagwirei. “MIF bought the 35% stake in Kuvimba from management. I need to check what was the value of the transaction. We bought the shareholding from a management consortium. I’m not aware of any other shareholder who was in Kuvimba other than government and management or their entities,” Mangudya said. “What this means now is that Kuvimba is now 100% owned by MIF since government transferred its 65% shareholding in the company to the fund. There is no need for anymore speculation about this issue.” Since Tagwirei is on United States sanctions, together with President Emmerson Mnangagwa and nine others, including three entities, delinking Kuvimba with the tycoon seems provides a welcome relief and a smart business move. Being associated with sanctions through a rumoured shareholder was an albatross for Kuvimba. Kuvimba, which is now part of MIF alongside a chain of state enterprises already put under its umbrella, holds some of Zimbabwe’s best mining assets, which were once owned by Tagwirei, who sits on Mnangagwa’s now practically defunct Presidential Advisory Council. The government has never disclosed the details of how it came to own 65% of Kuvimba. Names of those who constitute the management consortium, which owned 35%, have also not been disclosed. However, Kuvimba is now firmly under the control of MIF. Some of the state enterprises under MIF include NetOne, National Railways of Zimbabwe, TelOne, Cottco, Zupco, Defold Mine, Silo Investments, National Oil Company of Zimbabwe, Petrotrade, People’s Savings Bank, Zesa, Zimbabwe Power Company, Telecel, Arda, Hwange Colliery, Fidelity Gold Refinery, PowerTel, Allied Timbers, and the Industrial Development Corporation. Other entities added to MIF are Aurex, Export Credit Guarantee Corporation of Zimbabwe, HomeLink, and HomeLink Finance. Parastatals in Zimbabwe used to contribute about 40% to the gross domestic product at their peak in the first two decades after Independence in 1980, but their productivity has been whittled down by corruption and mismanagement. Page 4 News NewsHawks Issue 173, 19 - 26 April 2024 MIF pays US$1.6bn for Kuvimba Mining House Kuvimba Group CEO Simbarashe Chinyemba.
NewsHawks News Page 5 1ssue 173, 19 - 26 April 2024 BRENNA MATENDERE THE National Social Security Authority (Nssa) board chaired by Emmanuel Fundira is deeply divided over the revival of a controversial US$10 million ICT social security system tender involving local software company Twenty Third Century Systems (TTCS) (Pvt). Information gathered by The NewsHawks shows the Nssa board is at odds over the tender which Fundira has directed to be restored with a further US$2 million paid to TTCS despite that the company was given US$10.4 million but failed to deliver. High-level sources say Fundira has a pecuniary interest in the deal, which is why he is aggressively pushing for it. This has riled and mobilised board members to oppose the deal which has footprints of corruption. Insiders say bringing back the TTCS system puts pensioners’ funds at further risk as the company might fail again to perform. This might result in Nssa paying US$20.8 million for the same system if the deal goes ahead. Besides, if TTCS wins its court battle and claim against Nssa over the legal dispute arising between them, that might treble the amount of money lost in the process. The situation has rattled the Nssa board, which includes Merjury Chinyemba, Tarusenga Chitemere, Shepherd Mundondo, Grace Mathe, Timothy Nherudzo, Chipo Ndudzo and Beatrice Ncube. Fundira is the chair. Informed sources say Nssa board divisions are mainly along the lines of constituencies which directors represent and the brazenly corrupt nature of the deal at stake. “The Nssa board is divided over the issue of the US$10.4 million tender which the chairman wants to revive with TTCS. To start with, it was not a board decision. It was the chairman’s action; which means his imposition. Most board members are saying this is immoral and corrupt. Why should Nssa give a contract to a company which was paid more than US$10 million, but failed to deliver?” a source said. “The board comprises three representatives seconded by labour. The board members representing labour are Mathe, Chitemere and Mundondo. Business is represented by Ndudzo, Nherudzo and Ncube, while government representatives are Chinyemba and Fundira. “What is happening now is that board members from labour are opposed to the deal. Business representatives are asking questions about it. This means the majority — six board members — are effectively opposed to the deal. “Only two members seconded by government are supporting the revival of the dodgy contract, but then again it is unpopular and has no support. It’s only Fundira and Chinyemba supporting the deal. The contract will be dead on arrival, unless those behind it don’t care about corruption and being held accountable for it in the end.” TTCS, which is based in Harare's Newlands suburb, provides technology and software solutions. It was linked to Germany multinational SAP, a market leader in enterprise software application, and South Africa’s EOH Holdings, a tech giant, until 2019. Now they are at war with each other. This resulted in Nssa taking legal action against TTCS and a counter lawsuit. Fundira wants the court cases to be hastily withdrawn and a new contract issued without responsibility and care for pensioners’ funds already sunk into the botched deal. The abortive Nssa-TTCS tender was widely viewed and described as a grand heist. Nssa paid over US$10 million for the dysfunctional system, but has nothing to show for it. Documents show Fundira has used his power — through what is called “chairman’s action” — to pressure the board into reviving a deal in which the pension fund has already lost more than US$10 million. He wants the contract restored at all costs and has been forcefully demanding that it be done urgently, suggesting a vested personal interest. The issue has divided Nssa management and rattled government officials aware of the attempt to create further exposure for the US$1.2 billion pension fund through a contract which may fail again. What is alarming, according to the documents, is that Fundira also wants Nssa to stop its court action against TTCS, while paying it more money. Court papers show Nssa is arguing that the contract was invalid or alternatively there was a breach of the agreement signed on 31 October 2013, hence the invalidity. It wants US$10 million in damages for breach of contract plus interest at a rate of 5% per annum with effect from 31 December 2017. For its part, TTCS is claiming US$7 369 326 against Nssa for maintenance fees and software licences. The matter is at pre-trial conference stage. Despite these two cases, which have been consolidated by the court due to similar cause of action by related parties, Fundira wants Nssa to revive the old deal and immediately pay TTCS about US$2 million extra to come back amid unresolved previous complaints of failure. A ministry of Public Service official told The NewsHawks: “Basically, Fundira wants TTCS to be given a renewed contract even if they failed to deliver. Nssa paid above US$10 million, but must now pay again, with US$2 million immediately released to the same company which bungled the project. This is a brazenly corrupt deal. “On 7 December 2023, the board met with TTCS representatives to discuss the SAP system that Nssa had acquired sometime in 2013 for a cost in excess of US$10 million. Nssa paid for the system in full. At the meeting, TTCS indicated they were ready to resuscitate the system at an estimated cost of US$1 880 000 and would require about 1 054 days to restore the system. The provision of annual maintenance would be 22% of the value of the software — which means about US$880 000.” Further, Fundira wants Nssa to drop its legal action against his close associate Henry Chikova, a former director for benefits, schemes planning and research at the pension fund. Nssa was suing Chikova, who now works at the Public Service Commission, for deliberate misinformation, impropriety and gaslighting colleagues which led to the awarding of the tender to an undeserving supplier, TTCS, which had lost to another company, Integra, but later clawed back as it charged US$10.4 million as opposed to its competitor’s US$17.8 million. Fundira wants charges against Chikova dropped so that he makes him Nssa general manager — the management boss — to implement his new US$10 million deal. Nssa management has already been told to drop charges against Chikova in preparation for his return as the boss at the company where he left under a cloud of impropriety and corruption suspicions, costing the company millions. The pension fund is due to recruit a new general manager next month to replace Arthur Manase who resigned last year facing over 30 charges of corruption. Applications closed on 31 March. Nssa was constituted and established in terms of the Nssa Act of 1989, [Chapter 17]. It is a statutory corporate body tasked by government to provide social security. The provision of social security can be defined as instituting public policy measures intended to protect an individual in life situations or conditions in which his/her livelihood and well-being may be threatened, such as those engendered by sickness, workplace injuries, unemployment, invalidity, old age, retirement and death. It is based on the principle of social solidarity and pooling of resources and risks, involving drawing of savings from periods of employment, earnings and good health to provide for periods of unemployment, old age, invalidity and death. At the moment, Nssa is administering two schemes: Pension and Other Benefits Scheme and Accident Prevention and Workers’ Compensation Scheme. NSSA board divided over US$10m ICT security deal Shepherd Mundondo Beatrice Ncube Tarusenga Chitemere Merjury Chinyemba Timothy Nherudzo Dr Chipo Ndudzo
Page 6 News NewsHawks Issue 173, 19 - 26 April 2024 Chinese company mining in Zim Unesco biosphere reserve BERNARD CHIKETO AN illicit alluvial gold mining operation, run by Chinese and Zimbabwean nationals, is happening in Haroni Rusitu Botanical Reserve, a threatened lowland moist evergreen forest, and a core area of the Unesco Chimanimani Biosphere Reserve, without an environmental impact assessment (EIA) and the knowledge of the Environmental Management Authority (Ema), The NewsHawks has established. The reserve is home to many much-sought-after rare bird species – some globally threatened by extinction –making the forest patches a magnet for avian tourists. Clinging to the southern foot of the Chimanimani mountains, on the southern tip of Chimanimani National Park where the Haroni and Rusitu rivers meet to flow into Mozambique, the botanical reserve is Zimbabwe’s last fragment of the ecologically sensitive lowland evergreen forest. It is a rich biodiversity hotspot under the control of the Zimbabwe National Parks and Wildlife Management Authority (ZimParks). The ecologically sensitive area is part of the Nyanga-Chimanimani montane forest-grassland ecoregion which covers the mountains that extend along the border between Zimbabwe and Mozambique. It is over 1 000 metres in elevation with a maximum elevation of 2 592 metres on the Nyangani Massif in the north and 2 400 metres in the Chimanimani Mountains. Its fragile habitats are many and varied, but all constituting a critical high-altitude watershed area for both Zimbabwe and Mozambique. Forests of this region are pregnant with very rare species which are only found in this region and nowhere else in the world. The ecoregion supports highly diverse plant species. There are at least two endemic mammals in this ecoregion, the arend's golden mole and the silinda rock rat, besides the rare bird species thriving there. Most of the mining activities are occurring in Haroni River despite the fact that riverbed mining was outlawed by the Zimbabwean cabinet in 2014. It even forced the closure of Russian mining concern DTZ OZGEO which was mainly mining on riverbeds in Chimanimani and Penhalonga. Although the latest company which has invaded the area is still unknown as there is no formal signage, some Chinese nationals have been seen frequenting the mining site. The NewsHawks contacted the ZimParks spokesperson, Tinashe Farawo, over mining in the reserve but he had not responded to our questions by time of publication. This is despite sending him questions and pictures of an excavator in Haroni River showing the mining activities. Calls went unanswered. BirdLife Zimbabwe chief executive Julia Pierini said news of the mining activities was devastating as the area is part of one of the richest ecological complexes in Zimbabwe. “It is devastating to hear that the Haroni Rusitu Botanical Reserves are under renewed attack with big machinery clearing the forest. This should stop immediately. “The reserves were designated to protect one of the richest ecological complexes in Zimbabwe. They form part of the nationally and internationally recognised key biodiversity area that also falls within the Unesco Chimanimani Biosphere Reserve, particularly for their botanical importance as they represent one of the few areas of lowland forest in Zimbabwe. “The hot wet climate is responsible for the 50-metre tall lowland forest dominated by newtonia with maranthes and xylopia,” Pierini said. She said there are more than 200 birds that have been recorded in the area, which could nor be decimated by the Chinese miners, including two which are globally threatened by extinction. “Two hundred and thirty-three bird species have been recorded in the area, two of which are globally near-threatened: Circaetus fasciolatus and Athreptes reichenowi,” she said. Ema told The NewsHawks it has not issued any company an EIA to enable it to embark on riverbed-mining along the Haroni River. The unknown company is also clearing part of the forests which some locals have also been illegally supplanting with banana plantations just a few metres from the confluence of the Haroni and Rusitu rivers. “We are yet to receive their papers, if there are any to come,” Steady Kangata, rhe Ema communications manager, told The Newshawks, noting that they have no idea as to which organisation is conducting the mining activities. “If nothing has been submitted by a proponent, there is no way we can tell exactly who is behind this, unless we conduct an investigation.” Kangata however said Ema will take the necessary corrective action. “If whatever is being done is in contravention of the law, then the necessary corrective action will be taken,” Kangata said. Centre for Research and Development (CRD) director James Mupfumi said the illegal mining activities are being facilitated by political elites and securocrats who are out for self-enrichment at the expense of environmental integrity and the rights of indigenous communities. “Mining in the Unesco Biosphere Reserve in Chimanimani demonstrates continued flagrant disregard of the Zimbabwean people's rights to the preservation of culture, heritage and diverse ecosystem by the Chinese working in cahoots with political elites and securocrats to plunder minerals for self-enrichment,” Mupfumi said. The head of the natural resources governance watchdog lamented how powerful illegal mining cartels are instilling fear in government departments and agencies that ought to be enforcing the country’s laws in responsible resource extraction and management. “It is appalling that agencies of government like Ema, ZimParks that have an obligation of protecting the environment and wildlife heritage in the area have been reduced to bystanders for fear of victimisation,” he said. Mupfumi said his organisation demanded that the regulatory bodies remain faithful to their constitutional mandates and enforce the law without fear, favour or prejudice. “CRD calls upon the responsible authorities to adhere to the constitution and stop the Chinese from destroying Chimanimani heritage sites,” Mupfumi said. The Chinese, who are also mining in yet another river – Chiambuka River in the government-owned Allied Timbers’ Tarka Forest, where again they are operating without an environmental impact assessment – are joining a decades-long gold rush to the region. The NewsHawks saw two white Toyota Hilux double cab vehicles leaving the Chiambuka River mining operations, one with black folks ahead of one with Chinese nationals at around 1.30pm on 9 April. The discovery of gold saw thousands of artisanal miners and other fortune seekers flooding the region in the mid-2000s. The extent of the damage caused by gold panning can be seen from satellites images, revealing massive destruction of riverbeds and banks. It threatens not only human health but also fragile ecosystems. Chinese mining site in Haroni Rusitu Botanical Reserve Chinese mining operation on Chiambuka River Chinese mining operation on Chiambuka River has left the river in a mess Mining machinery parked at a clearing in the reserve which was initially prepared for a banana plantation
NewsHawks News Page 7 1ssue 173, 19 - 26 April 2024 BRENNA MATENDERE THIRTEEN homeseekers have lost a combined US$780 000 in a botched land deal which saw a Harare man working with international real estate company Richard Ellis to parcel out residential stands in the plush suburb of Glern Lorne without full legal title. The property in question is known as stand 2558 in Glen Lorne measuring 18.2 hectares. Documents gleaned by The NewsHawks show that one Shingirirai Tapomwa obtained a permit from Harare City Council to subdivide the land into residential stands numbered as stands 2968 to 3308 in line with plan number SD/ER/34/11. Tapomwa claimed that he acquired the land from employers of his father, Folly Cornishe (Pvt) Ltd, as part of his benefits for working for them over a long period of time. Richard Ellis Real Estate Company then sold the stands at US$60 000 each to homeseekers after having advertised them publicly. An agreement of sale signed on the Richard Ellis letterhead document between Tapomwa and one of the duped homeseekers, Gwinyai Family Trust, confirmed the price. Part of it reads: “The parties have agreed to enter into this agreement and regulate the terms and conditions upon which the property shall be sold to the purchaser. Now therefore, it is agreed as follows… the seller hereby sells to the purchaser the property … thew purchase price for the property shall be the sum of US$60 000 payable to the agent (Richard Ellis)”. When Folly Cornishe (Pvt) Ltd learnt about the transactions after all the stands had been bought and paid for, the company challenged the transactions in court. The company argued at no point did it give the land to the Tapomwa family for them to sell. The company won the case. The courts found that the company was the owner and registered title holder of stand 2558 Glen Lorne. In 2014, Supreme Court judge Paddington Garwe found that the late Misheck Tapomwa, whose relationship with Folly Cornishe (Pvt) Ltd was the subject of dispute in the court a quo, was only allowed to build on the stand in question to have some accommodation for himself and his family but not to claim ownership of the whole land as later claimed by his son so that he could sell stands there. Misheck Tapomwa died in November 2000, and his family continued to reside at the stand in question. The NewsHawks also found that in October 2008, Shingirirai Tapomwa acting in his capacity as executor of his late father’s estate, filed an application in the magistrates’ court in which he sought and was granted an order declaring the stand in question to be part of the estate of the late Misheck Tapomwa and directing the directors of Folly Cornishe (Pvt) Ltd to sign all necessary papers to effect the transfer of the stand into the name of his late father’s estate, failing which the messenger of court was given authority to sign all such papers. The basis of the order sought was that Folly Cornishe (Pvt) Ltd had “pledged” the stand in question to the late Misheck Tapomwa “as remuneration and pension”. Following this development, title in the stand in question was transferred to Tapomwa’s estate. On discovery that the property had now been transferred to his estate, Folly Cornishe (Pvt) Ltd then filed a court application seeking an order interdicting the sale of the stand in question pending the determination of an application to cancel the registration of the stand in the name of the deceased estate. The company won a court case in 2009 presided over by High Court judge Bharat Patel to stop any sale of the land by Tapomwa. Through other successive legal processes the company conclusively managed to get back the land which has now effectively affected the people who later bought the stands unaware of the developments which Richard Ellis ought to have made them aware had it done its due diligence. In separate interviews, the duped homeseekers all said they want compensation from Richard Ellis (Pvt) Ltd who collected their money on behalf of Tapomwa amid revelations the firm did not hand it over to him. In a statement to The NewsHawks, the Gwinyai Family Trust which lost US$120 000 after paying for two stands, said it wanted justice in the matter and blamed Richard Ellis for having failed to do due diligence to discover the land did not belong to Tapomwa. “The remedy we seek is compensation from Richard Ellis because they did not do due diligence on the piece of land that was being sold by Tapomwa. There was already a court interdict that stopped disposal of the stands that were on the so-called sale. Richard Ellis are liable because we purchased the stand from them and paid them. We considered they were a reputable real estate company.” Richard Ellis (Pvt) Ltd is no longer operating in Zimbabwe amid reports it relocated to the United Kingdom where it is headquartered. Efforts to get a comment from the company were unsuccessful. Kashington Jazi, who was the last manager of the company, refused to shed light on the matter. “These are matters which went to the courts and I cannot comment,” he said. Dawn Properties, a local real estate company, bought the franchise of Richard Ellis before it relocated. John Ndere, the current chief executive officer of Dawn Properties, said he joined the company in 2022, but is not aware of the Glern Lone stands issue. Contacted for comment, Tapomwa agreed that he sold stands, but claimed the land was “stolen from me and I am still fighting at the courts.” “On several times I have told those people that they must give me time to sort this matter. My land was stolen from me and I am fighting my wars at the courts. I am about to win the case at the courts and I have repeatedly said that after I win the case those who want refunds will be given and those that want to continue to develop their stands can do so. “How can I be that heartless that I sell things and not deliver? The land is still there and prime as it was with all the whistling trees. So I need time to sort the issue at the courts then we will sit down with the people who bought the stands on the way forward,” he said. While Tapomwa maintains that he has a case at the courts which he is about to win on the land, The NewsHawks is in possession of a latest High Court order delivered by Justice Maxwell Takuva which ruled that he is not the owner of the land and is interdicted from doing anything on it. Folly Cornishe (Pvt) Ltd is the applicant while Tapomwa is cited as second respondent and his late father is the first respondent, the City of Harare is the third respondent while the Registrar of Deeds is the fourth respondent. Part of the judgment reads: “It is ordered in the interim as follows: Pending the return date of this matter, first, second respondents and or anyone claiming rights and entitlement through them be and are hereby interdicted, restrained and prohibited from alienating, developing, constructing structures upon, disposing of, marketing, advertising, transferring and/or dealing in any other way with the applicant’s immovable property being a certain piece of land situate in the district of Salisbury called stand 2558 Glen Lorne Township measuring 18, 2024 hectares which is held by the applicant under Deed of Transfer (Reg. No 6050/2006 dated 25 August 2006 in any manner to any persona without the applicant’s knowledge, authority and/or specific written consent. “1st and 2nd respondents be and are hereby ordered to remove and take down all advertisements from all Social Media and online Media platforms of applicant’s immovable property being a certain piece of land situate in the district of Salisbury called stand 2558 Glen Lorne Township measuring 18, 2024 hectares which is held by the applicant under Deed of Transfer (Reg No. 6050/2006) dated 25 August 2006 within 24 hours of the grant of this Interim relief.” The homeseekers who were duped said if Tapomwa is claiming that he is poised to win the case, the statement might be aimed at duping other homeseekers because the matter was already finalised by the Supreme Court which ruled that he is not the owner of the land in question. Glen Lorne homesekeers fleeced over US$780 000
Page 8 News NewsHawks Issue 173, 19 - 26 April 2024 BRENNA MATENDERE THE electricity supply crisis in Zimbabwe is set to worsen following revelations by the Zambezi River Authority (ZRA) in its first-quarter report of this year that the water level at Lake Kariba is very low due to "the lowest lake inflow" on record. This will hugely affect power generation at a time when Zimbabwe has not placed any contingency measures to salvage the crisis. The low water inflow is attributed to the El Niño-induced drought spell which is a direct consequence of the climate crisis. On 12 April, executives from Zambia’s power company, Zesco Limited, Zimbabwe Power Company (Zpc) and the ZRA met to review the hydrological outlook for Kariba. The review took into account the below-normal performance of the 2023/2024 rainfall season. The meeting looked at the 16 billion cubic metres of water allocated for power generation operations at Kariba that was announced in December 2023 and noted that as at 12 April 2024, the power utilities had utilised a combined total of 5.35 billion cubic metres of water, leaving a balance of 10.65 billion cubic metres. This balance on allocation implies a combined average power generation threshold of 385 megawatts at Kariba Dam for the period April to December 2024, which is not enough for Zimbabwe's consumption. Part of the report circulated to the Zambian and Zimbabwean authorities after the meeting by ZRA chief executive officer Engineer Munyaradzi Munodawafa reads: “A review of the performance of the first quarter of 2024 and the 2023/24 rainfall season, which is projected to end by May 2024, was undertaken through simulations of water availability and projections up to December 2024. This exercise was executed using the authority's state of the art and robust Kariba inflow forecasting system which is underpinned by over 100 years of Zambezi River hydrological data. “The 2023/2024 rainfall performance in the Kariba catchment was below-normal as forecasted by weather authorities (the southern African regional climate outlook forecast and the respective meteorological agencies of Zambia and Zimbabwe). “The review also indicated the possibility of the year 2024 being recorded as the lowest lake inflow year for Lake Kariba.” The report also announced a major decline in inflows of water into the Zambezi River and Victoria Falls. The report said the Zambezi River's flow at Victoria Falls dropped from a peak of 800 cubic metres per second on 4 March 2024 to 657 cubic metres per second on 8 April 2024 before marginally rising again to 703 cubic metres per second on 12 April 2024, compared to 2 052 cubic metres per second recorded on the same date last year and a long-term mean of 2 952 cubic metres per second. “The Zambezi River flows at Chavuma also receded from a first peak of 530 cubic metres per second recorded on 23rd January 2024, down to 343 cubic metres per second on 9th March 2024, before rising again to 614 cubic metres per second on 12th April 2024, compared to 2 586 cubic metres per second on recorded on the same date last year and a long-term mean of 2 081 cubic metres per second. Lake levels recorded at the world's largest man-made lake continue to recede as we approach the close of the 2023/2024 rainfall season, mainly due to low inflows from the mainstream Zambezi River and reduced rainfall activity on and around the lake. “The recorded lake level today, 12th April 2024, was at 477.48 metres above sea level translating to 8.89 billion cubic metres or 13.73 percent of live storage meant for power generation. On the same date in 2023, the lake was 478.75 metres above sea level with 14.73 billion cubic metres and 22.74 percent of live storage. The authority projects that the gross water yield in 2024 is likely to be no more than 40 percent of that usually received during periods when the rainfall has performed normally leading to the Kariba reservoir closing the year 2024 at a level of about 475.85 metres (1.61 billion cubic metres or 2.49 percent live storage)” reads the report. Due to the crisis, ZPC and Zesco will now continue holding weekly joint technical committee meetings where the updated hydrological outlook for the Kariba catchment area is discussed. Zimbabwe has peak demand of 1 900 megawatts of electricity. Through the joint technical meetings and other engagements, the authority and the two utilities will continue to review the hydrological outlook and, where necessary, implement measures collaboratively to sustain reservoir operations at Kariba, executives agreed. The ZRA is a bi-national organisation mandated with contributing to the economic, industrial, and social development of the republics of Zambia and Zimbabwe by obtaining the greatest possible benefits from the natural advantages offered by the waters of the Zambezi River through the most economical and effective means of providing water for generation of electricity and for other purposes which the contracting states may decide upon. Zimbabwe Electricity Supply Authority Holdings general manager (stakeholder relations) George Manyaya said he could not speak on contingency measures that Zesa intends to put in place over the worsening power crisis. “The government agency has already pronounced its position on the matter and a Press conference was held by the minister on that matter. I am therefore unable to speak after what has already been said by a higher authority,” he said. Last year in December, Energy minister Edgar Moyo said negotiations were underway to increase electricity imports while the rehabilitation of Units 1 to 6 at Hwange Power Station was being speeded up to boost electricity supplies and bring to an end the ongoing load-shedding regime. Moyo assured stakeholders that swift measures were being taken to restore normal power supplies and support key economic sectors. However, progress in that regard has been slow. Power crisis set to worsen Zambezi River Authority chief executive officer Engineer Munyaradzi Munodawafa Hwange Power Station’s unit 7
NewsHawks News Page 9 1ssue 173, 19 - 26 April 2024 NATHAN GUMA PRESIDENT Emmerson Mnangagwa has revealed he is related to Central Intelligence Organisation (CIO) director-general Isaac Moyo, confirming an open secret in the corridors of power that his government is stuffed with relatives, friends and cronies. Mnanagwa said this on Friday during a funeral service for Moyo’s late daughter Shumirai Sandra Moyo who died of a brain cancer-related ailment in Dublin, Ireland, early this month. Shumirai was buried in Rutenga, Mwenezi, Masvingo province on Sunday. Addressing mourners in Harare on Friday, Mnangagwa said: “My relationship with Mr Moyo goes deep; he calls my wife sister and I call him sekuru (uncle). He told me everything that took place up to the death of his daughter. I was with him all along the way and was updated every time of the progress. I feel honoured to be here. “I thank you all who have come here kunonyaradzana naAmbassador nemhuri yavo (to comfort the ambassador and his family).” Mnangagwa then went on to reveal that Shumirai had a burning political ambition to remove opposition CCC Harare West Joana Mamombe from her parliamentary seat. “She was engaged in politics which shows how patriotic she was. A lot of kids are not engaged directly in politics. We are assembled here to give our last respects to a patriot of our nation. She had passion to remove Joana Mamombe from her constituency, so sad she couldn't get to finish her journey. No one knows what lies ahead of us but God. I came here to see sekuru vangu (my uncle). “Above all, I came here so that when I am gone, I should be remembered the same way. God knows the last day of each and every one of us. We have come here kunonyaradza (to comfort) a Moyo and this is because God has allowed this to happen. Be glad you are the ones to lay to rest this lovely soul. This girl is fortunate to have been sent off by the Vice-President (Constantino Chiwenga) and President. I have seen the former governor Gideon Gono he is here and, all other very important delegates here, I thank you for honouring this girl. My other Vice-President Cde KCD Mohadi will be in Rutenga tomorrow for the burial. This loss happens in any family. What God has written down no one can go against.” Mnangagwa, Chiwenga and other top government officials paid their respects to the Moyo family in Harare on Friday. This comes as Mnangagwa is battling a public perception that he is on a Karanga sub-ethnic hegemony project in Zimbabwe, as his government is dominated by his political allies mainly from the Midlands and Masvingo provinces. The late former president Robert Mugabe’s government was run and controlled by his Zezuru sub-ethnic group. Shumirai's mother is Priscilla Zindari-Moyo, the Zanu PF MP for Mwenezi West. Moyo helped Mnangagwa to ascend to power during the Mugabe succession battle in 2017. To manage the security sector and ensure coup-proofing strategies, Moyo was recalled from South Africa where he was serving as the country’s ambassador and appointed CIO boss. Chiwenga described Shumirai as a jovial person and revealed he once addressed a crowd she had mobilised. He said the President had come to console the family given the fact that he had worked closely with Moyo over a very long time. Moyo said his daughter was a political activist, adding Chiwenga was well aware of her political activities. “Her ambition was to remove Joana Mamombe from her post as MP for Harare West constituency,” he said. He said Shumirai fell sick while at work in Dublin and was subsequently sent home. She was taken to hospital on the second day with a suspected meningitis ailment before being tested for cancer of the brain. He added she was swelling in the brain and spent six weeks in intensive care without eating. Moyo said his wife or her mother spent a month with her, while she was hospitalised. He thanked Mnangagwa and First Lady Auxillia Mnangagwa for visiting and comforting his family. Besides Moyo, Mnangagwa has appointed several other relatives to senior government positions. A number of examples in various government ministries, departments and positions illustrate the point beyond reasonable doubt. Mnangagwa has appointed family members — including his son — and direct relatives into government. After elections last August, Mnangagwa appointed his son, Kudakwashe David Mnangagwa, deputy Finance minister. He also appointed his brother’s son – also his son in African culture — Tongai Mafidi Mnangagwa deputy Tourism and Hospitality minister. His nephew Martin Rushwaya is Chief Secretary in the Office of the President and Cabinet. He took over from Misheck Sibanda, who is also a close relative. Sibanda’s wife Doreen was appointed Zimpapers chairperson. The Commander of the Zimbabwe Defence Forces, General Phillip Valerio Sibanda, is also linked to Mnangagwa. They share the same totem, Shumba. Paul Mangwana, a fellow clansman of Mnangagwa and close associate from Chivi in Masvingo, is the Zanu PF secretary for legal affairs, while his 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. Some of Mnangagwa’s Midlands or Karanga allies in government include July Moyo, Public Service minister, Owen “Mudha” Ncube, Midlands Provincial Affairs and Devolution minister of State, who was State Security minister, Paul Mavima (Midlands), Professor Amon Murwira (Masvingo) and Frederick Shava, Foreign minister (Midlands). Jenfan Muswere, who hails from Manicaland province and is a close friend of Emmerson Mnangagwa Junior, is Information minister, showing the influence of patronage or cronyism. Ziyambi Ziyambi, a Karanga, is 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. The Tourism and Hospitality Industry ministry, which was split from the tourism and environment portfolio, was assigned to Barbara Rwodzi. Rwodzi is from Mnangagwa’s Midlands province. She inherited his wife’s constituency, which was initially his. The Environment portfolio was initially given to Mangaliso Ndlovu, one of his cronies from Matabeleland South province, who did not win a constituency during the last elections as he dropped out in the primaries. Ndlovu was subsequently taken back to Industry and Commerce, exchanging ministries with veteran minister Sithembiso Nyoni. Winston Chitando, now Local Government minister, is also from Masvingo, as another example. Thabani Vusa Mpofu, a Midlander and a presumed Mnangagwa relative, is still holding onto the Special Anti-Corruption Unit in the President’s Office. Another example is that of Dr Vincent Hungwe, who chairs the Public Service Commission and the Health Service Commission. There are many other examples which demonstrate systematic nepotism, patronage and cronyism in Mnangagwa’s administration. The national constitution says appointments to public institutions including government departments, must broadly reflect the nation’s diversity and gender composition. Mnangagwa is not broadly and reasonably doing this. Mnangagwa says he is related to CIO boss President Emmerson Mnangagwa sitting with Central Intelligence Organisation Director-General Isaac Moyo, his uncle.
Page 10 News NewsHawks Issue 173, 19 - 26 April 2024 BRENNA MATENDERE ZIMBABWE'S state security service Central Intelligence Organisation (CIO) Director-General Isaac Moyo's daughter Shumirai Sandra Moyo, who died in Dublin, Ireland, from a brain cancer ailment early this month, was buried on Sunday in Rutenga, Mwenezi district. Shumirai had a dream to remove main opposition Citizens' Coalition for Change Harare West MP Joana Mamombe from her seat. This emerged when President Emmerson Mnangagwa, Vice-President Constantino Chiwenga and other top government officials paid their respects to the Moyo family in Harare over the passing away of their daughter. Shumirai's mother is Priscilla Zindari-Moyo, Zanu PF MP for Mwenezi West. Zindari-Moyo recently visited her daughter in Dublin while she was bed-ridden, but she died when she had returned home to arrange for more time to be with her. Shumirai will be buried in Rutenga, Mwenezi, on Sunday. Co-Vice-President Kembo Mohadi will attend the burial. At the funeral service yesterday, Mnangagwa said: "She (Shumirai) was engaged in politics which shows how patriotic she was. A lot of kids are not engaged directly in politics. We are assembled here to give our last respects to a patriot of our nation. She had passion to remove Joanna Mamombe from her constituency, so sad she couldn't get to finish her journey." Moyo, CIO boss and Shumirai's father, said: "Shumirai was a political activist; Vice-President Cde C.G.D.N Chiwenga is well aware of that. Her ambition was to remove Joana Mamombe from her post as MP for Harare West constituency." Narrating what happened to his daughter, Moyo added: "She went to work as usual and got sick and was sent home. On the second day she was taken to hospital and was suspected of meningitis and was tested for cancer of the brain. She was swelling in the brain and she spent six weeks in intensive care without eating. Her mother spent a month with her and she couldn't talk. She passed on when the mother was trying to get back to her again. "She was drilled in the head and a tube was put in her head, that is the last picture we saw of her before she passed on. I thank you Cde President for coming. Everyone is happy and comforted that the Head of State has come, also the First Lady was here, we thank her a lot. We are happy you are here, Your Excellency. Tomorrow we are taking the body to Rutenga. All those who can come are welcome. On Sunday we then bury her." Shumirai’s father, Isaac Moyo, serves the government as the head of Mnangagwa’s critical spy agency and the two are close allies. The CIO has kept Mnangagwa’s power ambitions alive after its deputy director, Walter Tapfumanei, led the Zanu PF affiliate group Forever Associates Zimbabwe (Faz) to grind a second term for him. The CIO consists of key branches which include internal, external, counter-intelligence, close security, technical and administration. The function of the organisation is to provide high-level security to the state from threats both within and outside Zimbabwe. The organisation also offers high-level security to top government officials like the President, ministers and diplomats working in and outside Zimbabwe. Regionally, the organisation works with other intelligence organisations from other African countries under a body called the Central Intelligence and Security Services of Africa (CISSA) to tackle problems that threaten the stability of the continent and hamper development, such as terrorism and extremism. CIO chief Moyo's daughter laid to rest Central Intelligence Organisation (CIO) Director-General Isaac Moyo's daughter Shumirai Sandra Moyo, in photo frame, was laid to rest in Rutenga, Mwenezi. Vice President Kembo Mohadi giving his keynote address at Shumirai Sandra Moyo's burial in Rutenga, Mwenezi.
NewsHawks News Page 11 1ssue 173, 19 - 26 April 2024 BRENNA MATENDERE THE 2024 Independence Day commemorations in Harare and other parts of the country outside the main event at Murambinda growth point in Buhera, Manicaland province were subdued and lacklustre, with very few people in attendance, which has become the trend since President Emmerson Mnangagwa took to the helm. Murambinda was a hive of activity as senior government officials, legislators and ordinary people from the country’s ten provinces descended on the town. The people of Murambida were also treated to a soccer match pitting the country’s two most followed teams Dynamos and Highlanders clashing. Dynamos won the match 1-0. In addition musicians from across the country performed at a well-attended music gala. But elsewhere in the country, there were no major festivities. Citizens are expressing resentment, saying they see no reason to celebrate independence from Rhodesia's racist colonial regime amid extreme poverty, corruption and repression. Hunger, joblessness and other economic hardships continue to bite the ordinary citizen and leaders seem to care less. At the main event on 18 April, Mnangagwa’s speech was out of touch with reality. He claimed the economy's gross domestic product has grown three times since he took over (from US$16 billion to US$47 billion), but he did not address a plethora of woes buffeting Zimbabwe on its 44th Independence anniversary. There is uncertainty about the country’s moribund local currency, ZiG, yet to get into people’s hands. The country is at the cross-roads. It will be so for a long time. Ordinary people are subjected to exploitation and despoliation by the Mnangagwa regime and see not much joy in marking independence. Political analyst Vivid Gwede concurred with this assertion. “The fact that the main event and attraction was out of these main cities could have contributed to low attendance. But also possibly people feel there is no genuine reflection at these events about the course of the country. “In that sense, people would see the celebrations as a partisan political pageantry. Given the high cost of living and most people work in the informal sector, they would choose to go to work. But this day remains an important milestone in the country,” he said. At the main event this year, some opposition politicians jostled to take front seats and be noticed for their presence by Mnangagwa. Social media was awash with the line of thinking that ahead of release of the Political Parties (Finance) Act by the government, factions of the Citizens' Coalitions for Change (CCC) outfit were desperate to get recognition so that the funds are poured into their pockets. Senior Zanu PF officials also trooped into Murambinda to catch Mnangagwa’s attention. Posting on his social media X handle, former Masvingo South Zanu PF legislator Walter Mzembi laughed off these unsophisticated political manoeuvres. “In my 15 years as Member of Parliament for Masvingo South I never attended National Independence Celebrations in Harare, the only I ever attended was in 1980 at Rufaro Stadium when I was part of the Mucheke High School choir. “My predecessor Dr Edison Zvobgo left me this lesson that on Independence Day, I must be with the people who voted me, so it would be one or two cows per Ward, I had to religiously budget for 20 cattle. “We would rotate the Star Independence Ward Rally like that for 15 years in togetherness. It worked and united our people . They called me yesterday from the constituency reminiscing about the good old days. Many who follow the main national event are there for other reasons, leaders stay with the people,” he wrote. Opposition stalwart Nelson Chamisa also said Independence means money in “your pocket” as he also reflected on how the commemorations have lost their meaning amid a sea of poverty among citizens. “Independence means food in your homes. Independence means jobs for the youth. Independence means decent jobs and salaries for workers. Independence means world-class working conditions for our uniformed servicemen and women. Independence means decent pensions for our pensioners,” he wrote on X. Chamisa lamented lack of drugs in hospitals, unaffordable social amenities, lack of basic infrastructure such as good roads and accessible districts countrywide. He said independence means land, title deeds and free speech. “Independence means free choice in elections. Independence means proper national elections. Independence means decent Salaries for civil servants. Independence means real money not Fake Money. Independence means dignity, decency and honour for citizens. Independence means true freedom, happiness and opportunities. “Independence means trusted national processes. Independence means professional, durable, credible, dependable and accountable national institutions. Independence means economic opportunities and advantages for everyone. Independence means functional and well maintained infrastructure, upon working systems,” said Chamisa. He opined that the hallmarks of independence are unity, dignity and happiness. “Independence is empty without the dignity and happiness of its beneficiaries! Zimbabwe shall be free and happy in our lifetime!Independence and freedom can’t be for a few,” he said. When the independent Zimbabwe's new flag was hoisted at Rufaro Stadium in Harare at midnight on 18 April 1980 as the Union Jack was lowered by the United Kingdom's Prince Charles (now King Charles III), there was a great deal of hope for the new nation and its people who had emerged from a long liberation struggle. The country had been under colonial rule for 90 years. Prime Minister Robert Mugabe took oath of office shortly after midnight in a ceremony at the then Salisbury's main stadium, while representatives of about 100 countries and 35 000 cheering Zimbabweans watched in awe. Mugabe, the Zanu leader, made an eloquent plea to the people of Zimbabwe to end hostilities and hatreds of the past, and move on. The independence ceremony, presided over by Prince Charles, heir to the British throne, had begun at midnight when the Union Jack was lowered for the last time in 90 years and the new five-coloured Zimbabwe flag was raised, signifying a new start. The lowering formally ended the 128- day "Second British Empire" in Africa that began when the temporary British governor Lord Soames arrived on 12 December 1979 to oversee the transition from white colonial rule and the first democratic general elections that brought Mugabe to power and brought hope to the masses. After 40 years at the helm of Zanu PF and 37 years of Machiavellian rule, Mugabe was finally removed by his own lieutenants led by his key enforcer, now President Emmerson Mnangagwa, in a military coup in November 2017. After that, Mnangagwa is now in charge, but his rule represents more of continuity than change. Self-evidently, after 44 years of independence, Zimbabwe has nothing meaningful to show for it. Officials on 18 April made speeches full of sound and fury signifying nothing — like a tale told by an idiot — but the extreme hunger and poverty on the ground spoke volumes. The majority are unemployed, millions have fled the country into neighbouring countries and overseas, while the nation has been looted dry, bankrupted and its people impoverished. All the gains of Independence pale in comparison to the sea of troubles engulfing the country. As Zimbabweans commemorated — not celebrated — Independence Day, one thing was clear: the country is now an empty shell; a crude and fragile travesty of what it might have been. To sum it up, it is Not Yet Uhuru for Zimbabwe. After 44 years of suffering, still no Promised Land President Emmerson Mnangagwa
Page 12 News NewsHawks Issue 173, 19 - 26 April 2024 NATHAN GUMA ZIMBABWE turned 44 on 18 April, but civil society organisations say the government is unlikely to meet its ambitious vision of attaining upper middle-income economy status by 2030, amid a worsening socio-economic crisis. The official 2024 Independence Day programme was marked by low-key commemorations, with no noteworthy festivities in urban areas compared to previous years, indicating diminishing enthusiasm about the event. In its Independence Day message, a social justice watchdog, the Zimbabwe Coalition on Debt and Development (Zimcodd), said the country is facing economic uncertainty due to deteriorating social services coupled by a plummeting currency. “Despite strides in various sectors, Zimbabwe continues to grapple with significant socio-economic issues that hinder its growth and development. Zimbabwe has just declared a nationwide state of disaster due to drought caused by the El Niño climate pattern,” reads the statement. “An estimated US$2 billion is required in aid to mitigate the effects of the drought and ‘ensure’ food security for affected populations. The poor rains have resulted in more than 2.7 million people facing food insecurity, with the current grain harvest projected to meet only half of the nation's cereal needs. “The fluctuating value of the Zimbabwe dollar currency or newly introduced Zimbabwe Gold (ZiG) has been a major source of economic uncertainty, affecting businesses and individuals alike. This contributes to a lack of public trust and market confidence in the local unit thus fueling currency substitution and depreciation.” The newly introduced ZiG currency backed by gold and other precious minerals is already shedding value against the United States dollar on the parallel market, raising eyebrows over its future. For instance, the currency depreciated twice in a day from 20 ZiG to 21 ZiG, barely a fortnight after its introduction while the abandoned Zimbabwe dollar is being rejected by a section of traders across the country, despite the central bank’s directive that it is still legal tender until 30 April. Zimbabwe's healthcare is also continually facing serious challenges that include inadequate financing, corruption, higher spending on salaries than service delivery and a lack of community participation in health matters. “Access to basic services such as clean water, electricity, and education remains a challenge for many Zimbabweans, especially those in rural areas. Ensuring equitable access to essential services is crucial for promoting social inclusion and human development. “To tackle the drought crisis and ensure food security, the government should implement water conservation measures, provide support for farmers to adopt climate-resilient practices and strengthen early warning systems. Additionally, investing in rural infrastructure, promoting small-scale entrepreneurship, and enhancing social protection programmes is crucial.” Another governance watchdog, the legal grouping Veritas, said Zimbabwe is unlikely to meet its vision of achieving an upper middle-income economy by 2030. “As we commemorate Independence Day... it is important to take note that we are only six years away from the 2030 deadline and six years have already elapsed since we set out the goal to be an upper middle-income economy,” Veritas said. “We need to reflect on whether or not, at this halfway mark, we are making real progress towards the vision.” To be regarded as an upper middle-income economy, the World Bank states that a country needs to have a gross national income (GNI) of between US$4 466-US$13 845 per capita. GNI is the total amount of money earned by a nation's people as well as its businesses and it also includes the gross domestic product (GDP) as well as income from exports; this total is then divided by the number of people in the country. In 2022, Zimbabwe’s GNI per capita was only US$1 500. “Analysts do say however that it is possible for Zimbabwe to reach the required GNI to be an upper middle-income economy by 2030, but it will not be an easy feat. Major growth in the main economic sectors would have to take place — some having to double in size,” Veritas said. “We also have to look at the distribution of wealth. GNI can be boosted by a top layer of very wealthy people, leaving the majority of citizens living below the poverty datum line. This is not a result we should aim for.” Zimbabwe’s claims of reaching landmark economic targets has always been under scrutiny. For instance, in October last year, President Emmerson Mnangagwa sensationally claimed that Zimbabwe’s mining has surpassed a US$12 billion target set for 2023, which was disputed by latest statistics by the Zimbabwe National Statistics Agency (ZimStat). According to ZimStat, the mining industry is trailing the wholesale and retail sectors in terms of contribution to gross domestic product. 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, with the country’s GDP estimated by the International Monetary Fund to have reached US$47.08 billion in October 2023. Independence without welfare rings hollow
NewsHawks News Page 13 1ssue 173, 19 - 26 April 2024 WHEN the new independent Zimbabwe flag was hoisted at Rufaro Stadium in Harare at midnight on 18 April 1980 as the Union Jack was lowered by the United Kingdom's Prince Charles (now King Charles III), there was a great deal of hope for the new nation and its people who had emerged from a long liberation struggle. The country had been under colonial rule for 90 years. New Prime Minister Robert Mugabe took oath of office shortly after midnight in a ceremony at the then Salisbury's main stadium, while representatives of about 100 countries and 35 000 cheering Zimbabweans watched in awe. Mugabe, the Zanu/ Zanla leader, made an eloquent plea to the people of Zimbabwe to end hostilities and hatreds of the past, and move on. "The wrongs of the past must now stand forgiven and forgotten," Mugabe said in a speech he wrote. "If yesterday I fought you as an enemy, today you have become a friend and ally with the same national interest, loyalty, rights and duties as myself. "If yesterday you hated me, today you cannot avoid the love that binds you to me and me to you." The independence ceremony, presided over by Prince Charles, heir to the British throne, had begun at midnight when the Union Jack was lowered for the last time in 90 years and the new five-coloured Zimbabwe flag was raised, signifying a new start. The lowering formally ended the 128-day "Second British Empire" in Africa that began when the temporary British governor Lord Soames arrived on 12 December 1979 to oversee the transition from white colonial rule and the first democratic general elections that brought Mugabe to power. The elections were marred by violence and intimidation, something which was to become a hallmark of Zimbabwean polls for a subsequent long time after independence up to this day. The August 2023 general elections were no different. They were stolen in broad daylight. Even at the height of its popularity, Zanu PF never held free and fair elections. The tension-filled and uneasy transistion followed British-sponsored peace talks , at the Lancaster House Conference, the previous fall in 1979, which ushered in a ceasefire and majority elections in 1980. Mugabe and Zanu PF won the elections. The huge crowd, all there by invitation, was subdued for most of the British-oriented ceremony but it came alive and roared approval as a 21-gun salute accompanied the raising of the new flag. Mugabe's political rival Joshua Nkomo, the larger-than-life Zapu leader, was reportedly close to tears as the Zimbabwe flag went up. Nkomo was a nationalist and idealistic at heart, while Mugabe was a Machiavellian and ruthless pragmatist. Under the gloss of the pomp and fanfare ran deep divisions and serious insecurities between Mugabe and whites who were loyal to former Rhodesian prime minister Ian Smith and nervous about the future, and Nkomo and his supporters who feared an eruption of deep-seated hostilities between Zanu and Zapu, as well as ancient tribal hatreds. Mugabe tried to assure whites and his local Zapu rivals that he would not be vengeful, but no sooner had he settled into office than he started showing his true colours. From day one, Mugabe said in an interview in 1980 that he intended to rule the country "with a firm hand" which fast became an iron fist. At the beginning, he included Zapu and the Rhodesians in his unity cabinet as he tried to be inclusive. That appeared promising. And the nation-building project seemed possible and viable at that point. Yet the simmering tensions in society were unmistakable and sweltering like the heat of the African tropical savanna. And again his political model was based on a one-party state — which was part of Zanu's election manifeso in 1980 — and the quest for political and ethnic hegemony, which quickly manifested themselves as he sought to swiftly consolidate and retain power. His one-party state model had Stalinist features and would be sustained at a huge democratic cost. While on the economic and social fronts Mugabe tried to rebuild the country, make it work and improve the people's lives, on the political sphere he tightened his authoritarian grip on the nation and its soul with a chokehold. The result was significant gains on some crucial social spheres and human development indicators, particularly education and health. Zimbabweans were mobilised en masse to go to school and that helped improve literacy rates and the human development index. At one time, Zimbabwe became the most literate country in Africa. It is a major exporter of quality human capital, skills and labour, apart from its minerals and tobacco. Agriculture is the mainstay of the economy despite massive disruptions through the land reform programme after 2000. The imperative and utility of land reform is one of Mugabe's most contested legacy issues. Most of the development gains of independence still do exist, although they are eroding due to national failure and collapse. Some of the early gains like schools are still manifestating themselves in different ways, although millions who have been to school have no jobs or other opportunities. Zimbabwe is not a land of equal and rewarding opportunity, but a cronyism-driven society. Meritocracy and competence are frowned upon in favour of nepotism, hence a kakistocracy, rule by the least competent. By many measures, government is now tantamount to rule by thieves, which is a kleptocracy. These are not just bombastic words or terms, but reality. Unemployment has become a social time bomb and a symbol of national failure. Education is now collapsing, just like health and everything else, including infrastructure. The current rehabilitation of roads, airports and dams pale in comparison to the destruction. After extended periods of mismanagement and looting, the country has plateaued and stabilised in crisis. At the beginning, Mugabe's authoritarian project saw him clandestinely going to North Korea as early as 1980 to train a crack military unit to crush his Zapu opponents who were fired from government only two years down the line, intensifying the showdown. This followed confrontation between Zanu and Zapu, dating back to the 1960s, with clashes in the military circles during turbulent integration process, subsequently leading to army desertions and deserters who became known as "dissidents". That set a theatre of conflict in a Cold War context, bringing in South Africa, Britain and other powers in a geopolitical power play. The developments also became a precursor to the Matabeleland military lockdown in 1982 following the Entumbane clashes in November 1980 into early February 1981, heralding bloodshed. That led to Gukurahundi starting in January 1983, which eventually morphed and degenerated into genocide. Gukurahundi killings remain a scar on the conscience of the nation. The atrocities started in Matabeleland North in 1983. In 1984, Mugabe launched a fierce scorched earth policy in Matabeleland South. Killing camps were opened. Soldiers became zombies in the Matabeleland killing fields as they simply couldn't cope with massacres as one Gukurahundi commander, the late Zimbabwe National Army commander Lieutenant-General Edzai Chimonyo, confessed. Then there was the urban warfare during the 1985 elections and retributions. After five years of widespread systematic violence, brutality and a flood of bloodshed amid massacres, the Unity Accord was signed between Zanu and Zapu in 1987. The democratic cost of that was a de jure one-party state, which firmly put Zimbabwe on the path to a repressive authoritarian state. The country persisted on that route as opposition parties, civil society and communities reeled under the jackboot of political repression. Mugabe consolidated power and became a Stalinist despot in the process. The economy started failing through the 1990s, especially towards the end of the decade. The command economic model of the 1980s had faltered and was abandoned for a free market economy in the 1990s, amid liberalisation and deregulation under the Bretton Woods institutions' tutelage. This followed the collapse of the Berlin Wall, Soviet Union and end of the Cold War by 1991. With economic failure came inevitable political and social discontent. The war veterans also grumbled. Mugabe's Congo War adventure and war veterans' extortionist demands bankrupted the economy, triggered currency volatility and exchange rate-driven inflation. The labour movement became the main channel for growing demands for change and social unrest. With growing opposition, repression intensified. By the turn of the millennium, the labour and constitutional movements crystallised into a major opposition force, MDC. The land reform programme was unleashed more for Mugabe and Zanu PF political survival than redress of injustices of the past and empowerment of the subaltern. Then simultaneously began an era of disputed elections and a new wave of repression which have lasted to this day. Economic mismanagement, looting and corruption led to a meltdown and hyperinflation in 2008/2009 — basically the final nail in the economy's coffin. Zimbabwe's economy crashed and burned largely due to leadership, governance and policy failures under targeted Western economic sanctions. Mugabe became unpopular internally and his succession internal strife led to elite disintegration and infighting. His brinkmanship with the military, which had put him into power through the Mgagago Declaration in 1975, became precarious. All the while, Mugabe had begun to rely more and more on the army to remain in power at all costs. He gave the military more power and resources to suppress the growing opposition, yet those capabilities were also going to used to oust him in 2017. In-between the years, Mugabe outmanoeuvred and crushed his internal opponents with devastating force. Some were sidelined, discarded into the dustbins of history or killed. From being an international darling of the West, Mugabe became a rogue and pariah leader. That fueled his vulnerability at home as he tried to rally former liberation allies and the Global South to rescue him from international isolation. Isolated and sanctioned by the West, Mugabe "looked East" for political support and economic lifelines. After 40 years at the helm of Zanu PF and 37 years of Machiavellian rule, Mugabe was finally removed by his own lieutenants led by his key enforcer, now President Emmerson Mnangagwa, in a coup in November 2017. After that, Mnangagwa is now in charge, but his rule represents more of continuity than change. Self-evidently, after 44 years of its troubled independence, Zimbabwe has nothing meaningful to show for it. On Independence Day on 18 April this week, officials were making vacuous speeches in Murambinda and across the nation full of sound and fury signifying nothing — just like a tale told by an idiot. But the majority of people are currently unemployed, millions have fled the country into neighbouring countries and overseas, while the nation has been looted dry, bankrupted and its people desperately impoverished. All the gains of independence pale in comparison to the sea of troubles engulfing the country. As Zimbabweans commemorate — not celebrate — independence, one thing is clear: the country is now an empty shell; a crude and fragile travesty of what it might have been. —The NewsHawks. Zim independence an empty shell, a travesty The late former President Robert Mugabe
Page 14 News NewsHawks Issue 173, 19 - 26 April 2024 Uhuru celebration in pictures pics: Aaron Ufumeli
NewsHawks Page 15 1ssue 173, 19 - 26 April 2024 NATHAN GUMA IN the Fourth Industrial Revolution, several institutions are now racing towards automation, internet of things, cloud computing, cognitive computing, and artificial intelligence. The revolution signifies a paradigm shift characterised by the convergence of cyber-physical systems, the Internet of Things (IoT), artificial intelligence (AI), and big data, fundamentally transforming how people work, live, and interact. However, Zimbabwe is still playing catchup, with findings by The NewsHawks showing that 75% of government websites — main portals of communication — are perennially down, while others are endlessly undergoing maintenance, which experts say is a hindrance to access to information. According to section 62 of the national constitution, every person has the right to access information held by anyone, including the state. However, findings have shown that only six out of 24 ministerial websites are working, with the ministry Finance and Investment Promotion’s website having the most recent updates, while the remainder were last updated before 2021, with others not working at all. Other websites that are working include that of the ministry of Foreign Affairs and International Trade, last updated in 2021, and that of the ministry of Transport and Infrastructural Development was last updated in 2019. Websites of the ministry of Higher and Tertiary Education, Information Communication Technology and Courier Services, Sports Recreation Arts and Culture Tourism are also running, but without new updates. Even the official portal to the ministry of Information, Publicity and Broadcasting Services is not working. This is despite the government investing in communication and maintenance of broadcasting equipment. In the 2022 budget, the proposed expenditure for maintenance of technical and office equipment was pegged at ZW$14.5 million (US$ 22 445), with indicative estimates for 2024 and 2025 pegged at ZW$17 144 000 (US$26 539) and ZW$20 271 000 (US$31 379) respectively. The malfunctions contradict with government’s assertion in the 2024 Blue Book, which show’s that traffic on the Information ministry’s website has been gradually increasing under its information and publicity programme. According to the report, the website’s insights were pegged at 13.9 million in 2022, which increased to 15 million in 2023 and is expected to reach 18 million in 2024. The government has been mainly using X, with the Blue Book showing that total impressions for 2022 were 49 million, 200 million in 2023 and expected to reach 250 million in 2024. The Health ministry website, which is crucial for disseminating information on epidemics, has is frequently under maintenance, while the Mines ministry and Local Government ministry websites are out of order. Findings have also shown that websites to the ministries of Defence, Tourism and Hospitality, Veterans of Liberation Struggle, and Women's Affairs, Community, Small and Medium Enterprises Development are also down, showing a "404 Not Found" error notice. According to web hosting and AI website building company Hostinger, the "404 Not Found" error means the browser has connected and sent the request to the web server. “As a result, the browser can’t load the web page, showing a 404 error. Many factors can cause error 404 Not Found, including: Moved or deleted page. Sometimes, the page’s content may have been deleted or moved without fixing the broken link,” Hostinger said on its official website. “Mistyped URL. The page link is typed incorrectly into the browser’s address bar. In other words, you’re using the wrong URL to access the page.” In contrast, the websites of other governments in Sadc are functional, giving latest updates. For instance, the survey has shown that websites of South Africa, Botswana and Malawi are perfectly working. Media experts says the malfunction of the Zimbabwean government’s main media platforms has a negative impact on access to information. “In light of the internet age and technological developments and platfomisation of information it is critical for government departments to have a strong presence on digital platforms to ensure that the public has easier access to information,” said Loughty Dube, Voluntary Media Council of Zimbabwe (VMCZ) executive director. “The majority of people are active on digital platforms and accurate and credible government information should be easily accessible for citizens. “Govt information should not only be available but should be up to date and current, and it is imperative that governments should invest in technology in order to remain relevant and in constant touch with its citizens.” Media lawyer Chris Mhike said access to information is important for open government and good governance. “Under our law, everyone is entitled to access any information held by the state or by any governmental institution or agency, with minimal or no hindrances. That right of access to information is closely linked to the constitutional principles of open government and good governance,” Mhike told The NewsHawks. “Naturally, good governance should entail efficiency, accountability, and transparency in all institutions and agencies of government at every level." The present government claims to be more open than the previous (Mugabe-era dispensation), and the weekly post-Cabinet Press briefings are often cited as proof of that claim. Mhike said failure to maintain functional websites dents the principle of transparency. “While those [cabinet] briefings are certainly a commendable improvement to governmental communication in this country, there can be no doubt that in the modern age of advanced information communication technologies (ICTs), Press conferences are not enough. Websites do provide a vital source of information for citizens and for relevant non-citizens. “It is therefore safe to conclude that government's failure to maintain functional websites during the pertinent season violates various relevant provisions of domestic, regional and international law. Urgent action is necessary for the correction of that violation.” Governance shocker: Zim govt neglects its websites News
Page 16 News NewsHawks Issue 173, 19 - 26 April 2024
NewsHawks 12 - 19 April 2024 Edition Page 17 1ssue 173, 19 - 26 April 2024 BERNARD MPOFU ZIMBABWE'S controversial new ZiG currency is dramatically depreciating in the black market as margins widen for informal traders and corporates seeking profitable arbitrage opportunities, a harbinger of worse things to come. This is despite authorities' repeated shrill assurances that ZiG is backed by gold and foreign exchange reserves. ZiG has been received with widespread scepticism and cynicism, with the public saying it is just another Zimbabwean dollar version by another name. The currency has suffered instant ridicule and rejection in the process, crashing market confidence in it. Without confidence and trust, as well as key basic characteristics of money like convertibility and acceptability, ZiG is doomed. This comes as the government has now arrested 65 illegal money changers over parallel market deals. This is not new. Government has always arrested currency traders for the same reasons before, from the streets to corporate offices. For instance in 2018, police arrested 478 illegal foreign currency traders on one fell swoop amid a sweeping clampdown on dealers. ZiG has now replaced bond notes and the Zimbabwean dollar which were on freefall amid surging inflation, launched in 2016 and 2019, respectively. Zimbabwe has been struggling with currency and exchange rate volatility — and associated high inflationfor more than a decade now. ZiG is the country’s sixth attempt to launch a new currency since 2008 when inflation scaled 79.6 billion percent per month before soaring to an unprecedented level of 89.7 zillion percent by November that year, according to the International Monetary Fund. Other versions of the Zimbabwean dollar include the origin local currency, traveller's cheques, special agro-cheques, bearer's cheques, bond notes and now ZiG. Zimbabwe has a long complex currency history, having experienced hyperinflation amid an economic meltdown in 2008. In 2009, the country abandoned its local currency and adopted a multi-currency system, which included the US dollar, Pound, South African rand, and other foreign currencies. It later demonitised the Zimbabwean dollar, which only bounced back after a decade. In 2016, it introduced bond notes amid a multi-currency regime. In 2019, government reintroduced the local currency in its various manifestations, including RTGS dollar (Real Time Gross Settlement dollar) and bond notes. It removed the multi-currency system. However, due to economic challenges and high inflation, the local currency suffered serious volatility and exchange rate instability. In 2020, government was then forced to reintroduce the multi-currency regime. Since then, the use of the US dollar has immensely grown in the economy, with the national statistics agency Zimstats saying over 85% of market transactions are in the greenback. Last year, authorities said they will maintain the multi-currency system, anchored by the US dollar, until 2030. Even though ZiG has been introduced, it only accounts for 15% of market transactions. ZiG crashes in value in volatile parallel market Reserve Bank Zimbabwe
Page 18 News NewsHawks Issue 173, 19 - 26 April 2024 NATHAN GUMA TOP researcher and director of independent policy think-tank Sivio Institute, Tendai Murisa, says while the new Zimbabwe Gold (ZiG) monetary unit has been introduced to solve immediate currency issues, it is unlikely to address the deeper problems causing poverty and inequality in Zimbabwe. On 5 April, the Reserve Bank of Zimbabwe (RBZ) new governor John Mushayavanhu introduced the ambitious ZiG currency backed by gold and other precious minerals to replace the fast-waning Zimbabwe dollar. The dramatic introduction has seen traders across the country rejecting the Zimdollar which had been used for change, placing consumers in a fix, with the ZiG yet to fully come into circulation. In his analysis titled Zimbabwe’s New Monetary Policy Statement: A Brazen Attempt at a Silver Bullet, Murisa said while the currency has been introduced, several modalities which include public confidence coupled with a lack of political will in policymaking are not in place, which casts its future in doubt. “The ZiG may in all fairness succeed and if that were to happen, Zimbabweans would have some form of relief from daily financial gymnastics. Beyond that, the structural problems of poverty and inequality will remain intact,” Murisa said. “According to many sceptics, the government cannot be trusted to keep their word even for a month. They are most likely to print a lot of the stated ZiG beyond the assurances they have made to settle their positions. Such an argument is probably more scientific than what calls for blind trust in a government that has repeatedly broken its promises. “The present government has since 2017 been very good at pushing rhetorical narratives of grand transformation. Similar claims were made in 2018 about the RTGS, that it has the backing of Afreximbank to guarantee its 1:1 convertibility to USD — yet the currency collapsed dramatically. People have learnt their lessons from the 2007/8 period and there is no assurance that there will be no repeat of the same.” Murisa said very few people have confidence in treating the currency as a reliable medium to long-term store of value. For instance, people receiving local currency quickly look for means of disposing of it either through purchasing United States dollars or securing goods, while rarely keeping it in savings accounts. Murisa said the future of the new currency is also cast into doubt by lack of political and economic will in implementing policies which has riddled the country over the past decades. “The strange thing about Zimbabwean policymaking is always that the custodians of policies are usually always the first to put spanners in the works. The monetary policy statement refers to the fact that some statutory payments such as the Provisional Tax for each Quarterly Payment Date (commonly referred to as QPDs) will have to be settled in the local currency,” Murisa said. “There is no reference to daily consumer goods — except the mention that supermarkets are expected to display prices in ZiG. The assumption here is that the black market rate would be wiped out instantly — thus the prices reflected in supermarkets and other trading places will be based on a widely accepted and used rate. The usage of the United States dollar is widespread and deep. Goods and services are priced in United States dollars even in remote rural areas. How do we change that practice?” Murisa said the new currency is likely to be destabilised should the government continue paying contractors in local currency. Trends have shown that there is always a recurrent spike in the exchange rate whenever the government makes payments to infrastructure contractors. “Local contractors behave in the same way as other citizens. Soon after being paid in local currency they try to retain the value of funds received by purchasing United States dollars, usually on the black market,” Murisa said. “The rate is rarely pushed by ordinary citizens buying US$100 here and there but usually through Treasury-related payments. Is the government going to change their payment method and start settling local contractors’ invoices in United States dollars? That could work but is not likely. If the trend is going to continue, then there is a high probability that the government will give in to the temptation to print more ZiG notes or ‘increase’ digital balances.” The government has also been entangled in a long history of money printing with digital balances exceeding hard currency figures. “To settle these amounts, for instance, the former governor always held onto his claim that he was not printing money-referring to paper money — but the actual RTGS (digital) money was growing due to these payments to exporters. There have always been more digital balances than paper money in circulation. Fixing that will be the first major undertaking of dealing with underlying factors driving the rate,” he said. Murisa said the monetary policy presented by Mushayavanhu upon the launch, has also failed to adequately address questions of inclusive growth, as the widespread use of the ZiG may promote export competitiveness if production costs are met with a cheaper local currency. “Perhaps this is where the monetary policy will prove to be a huge challenge. The shift towards a more market-determined exchange rate will promote an increase in short-term trade opportunities. Most imported goods will remain as items for reselling,” he said. “Funds for long-term capital investment that have been in short supply will literally dry. The stability envisaged in the rate is not necessarily growth-oriented at all. Abandoning the auction in the manner that the government did, whilst good for addressing borderline criminal activities, should not suggest that the provision of affordable foreign exchange was necessarily bad.” “Some beneficiaries abused a good initiative. However, there are quite a number of manufacturing entities that could do with friendly recapitalisation financing for them to adequately compete against cheap imports. Furthermore, few SMEs benefitted under the previous monetary policy. The current framework is silent on how it will seek to cushion these economic actors.” New money won't alleviate poverty Women selling mushroom. Cash shortages can cause poverty.
NewsHawks News Page 19 1ssue 173, 19 - 26 April 2024 NATHAN GUMA THE launch of the new Zimbabwe Gold (ZiG) currency has raised debate, with analysts urging the authorities to adopt advanced technology in monitoring gold production to reduce mineral leakages and illicit financial flows, while ramping up bullion reserves. On 5 April, new Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu launched the ZiG currency, that is backed by Zimbabwe’s reserves of US dollars and precious metals, particularly gold, to replace the Zimbabwe dollar that had been decimated by relentless inflation. However, concerns have arisen over illicit mineral flows, whose disastrous effects could sabotage efforts to build national forex and gold reserves. Zimbabwe has been losing an about US$100 million in monthly gold leakages, according to government estimates. In its analysis of the Monetary Policy Statement, a social justice watchdog, the Zimbabwe Coalition on Debt and Development (Zimcodd), said adopting advanced technologies will help curb criminality as information such as the exact source of gold, holder of gold-buying licences, and amount of taxes paid on gold exports can be collected and analysed. “The current rampant illicit gold trading, as reported by Al Jazeera’s Gold Mafia documentary, if not curtailed, will militate against the accumulation of gold reserves, which are crucial in supporting the value of the 'structured currency',” reads the analysis. Zimcodd said the country is likely to face pressures to print more money. For instance, the country has an adverse economic outlook coupled with the El Niño-induced drought that has affected the 2023/24 summer cropping season, creating enormous spending pressure on Treasury to cushion the vulnerable groups and the economy in general. “Just like the norm globally, the Treasury will need help from the RBZ (money printing) to meet the demand of the pending humanitarian and economic crisis. The increase in ZiG money supply will only be permissible if there are enough gold reserves; hence, there is a need for a whole-of-government approach to curb illicit gold trading,” reads the analysis. Civil society has been piling pressure on the government to join the Extractive Industries Transparency Initiative (EITI) to promote accountability in the mining sector and help stem illicit mineral flows, but the authorities have snubbed the calls. The government’s main argument has been that the EITI is a foreign-driven initiative and that it does not come with clear opportunities for change. Zimcodd’s analysis has also predicted that the expected increase in import bill is likely to render the ZiG worthless. “The ZiG concept will require frequent auditing of physical gold and United States dollar cash reserves backing the currency by reputable and independent audit institutions. "Suppose there are no trusted audits of the quantum of gold reserves in RBZ vaults versus issued structured currency (ZiG). In that case, the tokens risk suffering the same fate as bond coins and notes, which RBZ reportedly introduced under a US$200 million facility provided by Afreximbank. The market started to reject bond coins and notes like $2, $5, and $50 partly because authorities have printed more than they reported backing this surrogate currency, thereby causing increased depreciation pressures," says Zimcodd. “There is also a need to provide strong guardrails against gold leakages from the RBZ vaults, which can be caused by theft and fraud by unscrupulous public officials.” While the RBZ has set minimum savings and time deposit interest rates on ZiG at 9% and 7.5% below the central bank's deposit facility rate of 12.5%, respectively, interest rates on foreign currency account (FCA) deposits have remained unchanged at 1% and 2.5% for savings and time deposits, respectively. “Lucrative interest on deposits ensures that excess money held by the public is kept in the bank rather than being used for speculative purposes. In other words, the higher the deposit interest rate, the greater the opportunity cost of holding non-interest-bearing cash,” reads the analysis. “However, these interest rates on deposits must be above the inflation level. Otherwise, they are unlikely to lure economic agents into banking their excess ZiG funds. This is because when interest rates lag behind the inflation level, the value lost due to increased prices is much higher than the value gained on interest-earning ZiG deposit accounts. “As such, there is no incentive for the public and investors to keep their extra money in such accounts in an inflationary environment. They would rather chase value by investing their free funds in riskier assets like stocks or buying US dollars in the parallel market.” Gold smuggling will sabotage ZiG
Page 20 News NewsHawks Issue 173, 19 - 26 April 2024 BRENNA MATENDERE PARLIAMENT has summoned Finance minister Mthuli Ncube to appear before lawmakers and issue a ministerial statement on the newly introduced ZiG currency. The minister must explain how the currency will be sustainable in the wake of the crisis it has already plunged the country into since its launch last week. Marondera MP Caston Matewu rose on a point of national interest on Tuesday to raise concern over the crisis caused by the Zig currency. “On the 5th of April 2024, that is last Friday, the Reserve Bank Governor, Dr John Mushayavanhu issued the Monetary Policy Statement in terms of the Reserve Bank Act, [Chapter 22:15] which was followed by the Presidential Powers and Temporary Measures, [S.I. 60 of 2024]. “We expect the minister of Finance, Economic Development and Investment Promotion to come to this House and explain to us how the new currency is going to work. We owe it to the people, whether we are also going to amend the Finance Act which we voted for in December of 2023 because if the new currency is going to work, the common denominator must be confidence. “We must be confident that it will work, the people of this country, the region, and the international community must be confident in the new currency. However, confidence will only come if the government is confident in our currency,” he said. The legislator added that the nation needs to know if the Finance Act which put everything in US dollar terms with respect to government services like passport fees, fuel and every service that the government offers, must then follow suit and be accessible in Zimbabwe Gold (ZiG). “Otherwise this will remain a damn spat and it will not work. So, we expect the minister of Finance to come to this House and amend the Finance Act to ensure that we can now pay for anything in central government using ZiG, otherwise we are wasting our time,” he said. Speaker of Parliament Jacob Mudenda ruled that Ncube must present a ministerial statement on ZiG. “Your request is accepted and will ask the Honourable Minister to present a ministerial statement to explain so that after his explanation, as representatives of the people, you will be able then to go back and explain equally, in equal measure, to the people you represent,” he said. On Wednesday, Norton MP Richard Tsvangirai again raised the issue. “My question is in connection with the ministry of Finance, Economic Development and Investment Promotion. What assurance can the minister give this House and the nation at large that the new currency [ZiG] will succeed, given the history of excessive printing of money at the central bank and the confidence deficit that we have in the market?” he asked. Mudenda said the matter would be settled when Ncube presents the ministerial statement. “That question will arise once the ministerial statement is tabled. Every member of Parliament will have time to ask such questions in that context,” he said. The introduction of the new ZiG currency has unleashed chaos in the market, with the poor and vulnerable locked out of the financial system since last Friday. Ordinary people using RTGS, bond notes and EcoCash were during the weekend were unable to transact, meaning they could not buy basics for daily sustenance. New Reserve Bank of Zimbabwe governor John Mushayavanhu said banks would transition in a few days, but the authorities now say it may take up to the end of the month. While Econet says the EcoCash mobile money platform has now been reconfigured to handle ZiG, thus completing the conversion process, transactions in RTGS and bond notes are still not possible. Even with EcoCash, people are still wary about exchange rates and value, worried about losing out through arbitrage. Zimbabwe has a labyrinth of local currencies operating in a complex and chaotic system and fears are that this creates huge room for arbitrage. Banks are still struggling to reconfigure their systems. The new currency has triggered panic on the market as some informal retailers immediately began rejecting bond notes or inflated prices. Public transport operators are now charging US$1 per local commuter trip, taking advantage of the chaos. The new currency has been greeted with scepticism and lack of confidence. Mushayavanhu said the currency, which on Friday traded at US$1:ZiG13.5616, will replace bond notes which had been in the system since 2016. Before his presentation of the much-anticipated Monetary Policy Statement, retailers were asking for ZW$3 500 as an equivalent of US$0.50. However, after news of a new currency filtered through, US$0.50 cents is now worth ZW$5 000 bond notes as arbitrage-seekers cash-in before the phasing out of the old currency later this month. Some retailers were now demanding up to ZW$10 000 for goods worth US$1. New currency: Mthuli summoned Finance minister Mthuli Ncube
NewsHawks News Page 21 1ssue 173, 19 - 26 April 2024 NATHAN GUMA LAWMAKERS have demanded the amendment of the Deposit Protection Act (DPA), including ensuring that former managers of failed banks away are kept away from financial institutions to protect depositors and investors, amid indications of plummeting confidence in the banking system. This follows revelations that little has been done to redress challenges brought by financial reforms that were put in place from 2013 to date, including high interest rates and liquidity constraints. At the turn of the century the banking and financial services sector experienced upheavals that resulted in some institutions being shut by the authorities, owing to poor corporate governance. Many depositors and investors lost their money. Since then, confidence in the banking sector has waned, as indicated by mass cash withdrawals from banks before the introduction of the new Zimbabwe Gold (ZiG) currency on 5 April by new Reserve Bank governor John Mushayavanhu. The ZiG currency has started on a wrong foot, shedding value twice on the same day on the parallel market trading at ZiG21 against the United States dollar on 13 April, while the official rate is pegged at ZiG 13.56 In Parliament, Emakhandeni-Luveve MP Discent Bajila said the new amendment should prevent directors of defunct banks from further participating in the economy. Banks that have folded include Interfin Bank Limited (under liquidation), Royal Bank Limited (under final liquidation), AfroAsia Bank Limited (under liquidation), and Trust Bank Limited (under liquidation). “Honourable [Tendai] Nyabani moved further to say such people who had their banks going defunct must be charged of murder but Honourable [Supa] Mandiwanzira warned us, saying in doing this thing, we must know that business such as banking is a result of trial and error,” Bajila said. “I am saying this, to say some of the amendments to the Deposit Protection Act, we need to look into the fate of directors of defunct banks and not say they are banned forever from participating within the banking sector or economy in whatever way, as was proposed by Honourable [Edwin] Mushoriwa, supported by Honourable Nyabani. I am proposing that in dealing with this issue of directors of defunct banks, the amendment must set up some time during which they cannot participate as directors, further of banks, not a permanent ban. That is my proposal to that extent.” Bajila said consumer representatives should also play a part in the Deposit Protection Corporation. The corporation is a statutory body that provides protection to depositors in deposit-taking institutions licensed by the Reserve Bank of Zimbabwe under the Banking Act (Chapter 24:20), such as commercial banks, merchant banks, building societies, discount houses, finance houses, deposit-taking micro-finance institutions, People's Own Savings Bank (POSB) and Infrastructure Development Bank of Zimbabwe (IDBZ). In the event of bank failure, the DPC will compensate depositors part or all of their funds that were in the closed bank up to the maximum cover limit prevailing at the time of bank closure. “If you check section 6 of the Act, it speaks to representatives of the banks. It speaks to somebody appointed by the minister. It speaks to representatives of the business, but there is no representation of the consumers out there. We might need to amend this section and add an institution such as the Consumer Council of Zimbabwe so that it can be included as part of the directorship of the Deposit Protection Corporation, and that it can represent the interests of the consumers.” “At the end of the day, when banks collapse, it is the consumers who suffer the most. When banks collapse, it is us who will have taken our monies to the banks and we no longer find them.” While the country currently has an Insolvency Act, it does not cover the liquidation of banks, leaving small depositors vulnerable in the event of closure of a bank. Warren Park MP Shakespear Hamauswa said an amendment would be crucial to curb panic withdrawals by investors. “If someone reads in the newspaper that this bank is likely to collapse, people will go and withdraw the cash and it will bring a negative impact to the economy, but if consumers are aware that nothing will happen to their investments as they are protected by law and they will get what they would have deposited, there will be no panic withdrawal of cash,” Hamauswa said. “This is also another reason why we would want to see this law being amended, the current laws the minister of Finance is bringing to this House are comprehensive laws to make sure that we bring back the much-needed confidence. “The second recommendation is to make sure that there are timely or continuous updates on the risk assessment. The DPC must be equipped with the necessary human resources to do risk assessment, continuously update the consumers and investors in terms of the performance of the banks who are actually members to the corporation.” Zim bank destroyers must be banned from financial sector
Page 22 News NewsHawks Issue 173, 19 - 26 April 2024 Zim’s monetary history revisited LONG READ After the recent introduction of a new currency, Zimbabwe Gold (ZiG), in the economy to replace the worthless Zimbabwean dollar or bond note which was on a freefall due to currency volatility and exchange rate instability, we run an article on Zimbabwe’s monetary history done by Dr Tinashe Nyamunda, a lecturer in contemporary economic history (economic and social history); affiliate professor (school of social and political sciences), University of Glasgow, Scotland. This is important for historical facts, context and perspective, particularly against a backdrop of claims by some Zimbabwean government and Zanu PF officials that the country has a history of using gold as its currency, which is untrue and misleading. TINASHE NYAMUNDA WHAT is money in Zimbabwe? Given the contentious and dynamic experiences in Zimbabwe’s recent history, there is no easy answer to this question. But a glimpse into the country’s monetary history can provide some indication as to how the concept of money developed, at least from its colonial roots, and the kinds of currencies that have made up the country’s exchange arrangements. The country has spent at least half of its fiscal existence using foreign currencies, pseudo currencies, facing cash shortages, and has a legacy of externally based money and key currency pegged local currencies which have provided numismaticians (coin collectors) and note collectors with fascinating and rich currency history. At the heart of this history is another crucial question. Why is this monetary experience important to Zimbabwe’s contemporary and economic history? Those who lived through the Zimbabwean economic plunge that accelerated in the early 2000s will remember the emphasis given to monetary policy, especially around the time that Gideon Gono became the governor of the Reserve Bank of Zimbabwe (RBZ). Some in the Mugabe regime viewed him as the Messiah of the country’s ailing economy and his role became that of de facto Prime Minister who governed through quasi-fiscal activities. Monetary policy became the primary strategy to address the crisis engulfing Zimbabwe. This was based on Gono’s credentials as a banker and economist. Under his dispensation, currency was taken merely as a neutral means of exchange, standard of deferred payment, unit of account and store of value. These are the universally accepted characteristics of money in neo-liberal economics. The instability in the Zimbabwean economy post-2000, it was resolved, would be addressed through managing money as a concept, and the preferred tool was monetary policy. Ultimately, Zimbabwe’s currency lost all of its functions to a hyperinflation that peaked at 89.7 sextillion percent in 2009, and shifted the monetary terrain in unimaginable ways since then. Lacking in policy makers’ minds about how to resolve the crisis was a lack of imagination of what the Zimbabwean economy ought to be. Part of the explanation is that it is difficult to address any kind of challenges when the antecedents of the system or structure you are managing is unknown. This is the case in Zimbabwe. Little is known about the origins of the country’s currency arrangements and how it developed over time. Part of the explanation for these problems lies in this history. Without an appreciation of the country’s monetary history, how could policy makers have succeeded in using monetary policy to resolve the country’s challenges? Long after Gono, this problematic and ahistorical emphasis on using monetary policies to address the country’s economic challenges still persists under Mthuli Ncube and John Mangudya. This article attempts to shift the discussion a little. It hopes to at least introduce those interested to some elements of Zimbabwe’s monetary and currency history by pointing to some of the important foundations that have been instrumental in shaping the country’s currency terrain which point to possibilities in how Zimbabwe’s current problems can be resolved. Every week, a summary of developments in the country’s currency development from 1890-date will be done in this column. The column kicks off with the first ten years, covering the period between colonisation in 1890 until 1900, when the country’s first Legislative Council (in 1898) was established. It will be followed next week by a summary of developments between 1900 and 1910 and so on until we eventually cover Zimbabwean history to 2020. While far from being exhaustive, it is hoped that these summaries can provide interested readers with an introduction to how money became what it is in the country from the lens of currency history. The column attempts to provide a glimpse of how the monetary system began, the changes it encountered and how it has culminated in the current arrangements we have at present. Zimbabwe became a British colony between 1890 and 1980, named variously as Southern Rhodesia (1898 – 1953); Southern Rhodesia then became part of the Federation of Rhodesia and Nyasaland with Northern Rhodesia (renamed Zambia at independence in 1964) and Nyasaland (renamed Malawi at independence in 1964) between 1953 – 1963); the rebel government of Ian Smith then renamed the colony Rhodesia after a Unilateral Declaration of Independence from Britain between 1965 and 1979; and during the period of an internal settlement between Smith and some African nationalists led Bishop Abel Muzorewa, was renamed Rhodesia – Zimbabwe in 1979. At the attainment of independence in 1980, the country was renamed Zimbabwe. But throughout its colonial history, it experienced sustained currency instability which manifested itself in different ways as unpacked in what follows. The advent of British colonial rule, initially under Cecil John Rhodes’ British South Africa Company (BSAC) between 1890 and 1923 saw the introduction of a new currency. Similar developments occurred once the British annexed the territories that became Zambia and Malawi in 1891 as part of the imperial strategy of introducing sterling currency to all British colonies. The reason behind this was to ensure the smooth exchange of colonial products using a British based international currency at prices and exchange standards determined by the centre and to its ultimate advantage. This partially explains the mechanism of colonial exploitation. Occurring at a time when London stood at the helm of the world financial system, controlling the gold standard, the annexation of the region and the introduction of a new currency, together with a host of other economic measures served the interests of the imperial power. Besides ensuring that Southern Rhodesia’s gold was sold in London, imperial and colonial officials also ensured that the region’s currency was tied to that of the British Empire. Securing the colony, its economy and people to work for the colonial project required, among other things, monetisation. Imposing imperial monetary traditions on African colonies insured, as Economic Historian Antony Hopkins aptly summarised, that “the interests of leading Western nations lay in ensuring that the currencies of engaged in international trade were soundly based, readily convertible, and otherwise compatible with the workings of the gold standard so that world commerce could be conducted and expanded with smooth efficiency”. But currency compatibility with the West did not necessarily translate into local stability and benefit for African communities in the local colonial economy. If anything, it resulted in Former Reserve Bank governor Gideon Gono
NewsHawks News Page 23 1ssue 173, 19 - 26 April 2024 the subjugation of indigenous exchange traditions and their displacement by an exploitative settler economy. Among the ways in which the colonial monetary system worked, as unpacked below, is that it facilitated establishment of a tax system to both finance colonial rule and coerce Africans into an ultra-cheap labour system in which they worked for settler mining capital, enriching the white miners and the imperial economy while impoverishing Africans through racial segregation, land dispossession and poor wages based labour. A few months after white settlers occupied the new colony, the BSAC proclaimed Ordinance number 3 (1891) setting sterling based currency “in terms of which the standard coinage in the colony of the Cape of Good Hope became the standard coinage to be used within the territorial limits set out in the ordinance, namely Mashonaland”. The coinage used in the Cape colony was minted at the Royal Mint in London. Under this arrangement in British colonial administration, “the exercise of responsibility over currency was always subject to a reserved power of the home government”. After the passage of monetary legislation, currency became a creature of the law, a legacy that persists to date. As I write, only the state has the legal mandate to determine what currency is in use, as they have just done with the $10 and $20 note that will be introduced into circulation starting this week. Through violent colonial wars in 1893 and 1896, when the BSAC usurped political power from African rulers, the chartered company imposed colonial laws, including those on currency, making it illegal to use any other monetary standards except what was recognised by law as legal tender. These were the foundations of the colonial state’s control of exchange standards. But the major challenges to enforcing British and Cape currencies which became legal tender throughout the period of chartered rule to 1923 was the shortage of species. Moreover, the infra structure of a local settler government apparatus and its institutions was still in its infancy. Much like today’s shortages of currency, the early colonial state faced supply bottlenecks. Unlike today, in the early colonial days, there was no local central bank. The money that circulated was in the form of coins minted by Britain’s Royal Mint and shipped either to South African or the Portuguese port and then transported by carriage over land to Britain’s Southern African colonies, including colonial Zimbabwe. But the challenge was that the supply was erratic and this severely dislocated business. To resolve this problem, a number of measures were put in place. Instead of exchanging actual coins, traders drew cheques. These cheques were drawn on the first bank established in 1892 in Southern Rhodesia, the Standard Bank of South Africa limited. But many of these cheques were doubtful and usually bounced, making many resort to barter trade. Another strategy was to try and use pseudo currencies such as coupons to cover for these coin shortages. For example, in 1895, the Civil Commissioner of Bulawayo – Hugh Marshal Hole, worried about the major problems to business caused by currency shortages and the high level of doubtful cheques, issued stamped coupons. This was simply a card with a stamp of a specific value affixed to it which was allowed to circulate in place of money and could be redeemed once coins were delivered and became available. The back of a Marshal Hole coupon You can compare these stamped coupons to a number of other pseudo currencies that have been used in contemporary Zimbabwe. Some may remember the Agro and Bearer – cheques that were issued by the RBZ [in 2003 and 2008], or the bond note when it was initially introduced in 2016. Just like in the early years of colonial rule, these systems were abused by many in the market and pseudo currencies were very inefficient. As a result, ordinary people continued to imagine ways, just like we see in today’s Zimbabwe, that they could simply make do despite the challenges that they faced in the currency terrain. A further problem was that many Africans, most of whom enjoyed economic buoyancy on the basis of increased markets brought by white miners who had created markets for food, did not always like trading using these coins because of Europeans’ unruly and unfair trade practices. Instead, many preferred, among other methods, barter. But this went against the intentions of the colonial state which were to make colonial economies based on convertible currencies so that they could exploit and extract mineral resources. So while these practices continued, the colonial state devised ways of ensuring that their exchange standards would eventually be fully and legally enforced. Among the ways to ensure that Africans were drawn into the colonial exchange system was taxation. Because many Africans did so well in terms of trade, the colonial state put in place a number of methods to force them to use colonial currency. While the BSAC wanted to ensure that colonial currency became the means of exchange in the colony, work at the mines also required ultra-cheap African labour. After all, this was what the colonial enterprise was to be founded on. As a result, a number of taxes were imposed, for example, the poll tax, cattle tax, among others, which had to be paid in British coinage, and which could only be acquired through working for white mines or selling through this currency. But the major challenge for the British was how to ensure that this labour could be coerced. Hitherto, most Africans resorted to farming and selling their produce for cash whenever they could, thus managing to pay their taxes. However, given that the colonial economy was based on gold mining and the provision of cheap African labour, African agricultural production was viewed by white settlers and the nascent BSAC administrative structure as undesirable. Ultimately, the state resolved to start a process of taking productive land away from Africans and resettling them in unproductive land in African reserves, starting with areas such as Gwaai and Shangani. This process of de-peasentisation culminated in the Land Apportionment Act (1930). This displaced Africans from the most fertile land, most of which was transferred to white farmers, thus reducing the indigenous people to a pool of wage-earning labourers as they needed to earn money required to pay taxes. But to ensure that these foundations endured, the BSAC laid the foundations for a colonial governmental system. In 1898, the Legislative Council (LegCo) from which the country’s governmental institutions evolved from, was established as the first form of government that would later build institutions and pass legislation to govern the colony. The first order of business of the LegCo was to try and lay the foundations for the economic management of the colony. They all resolved, after realising the problems that the new colony had in acquiring coinage from Britain, to create a State and Public Bank of Issue. The Bank of Issue would be modelled along the lines of the imperial centre’s Bank of England. But because of colonial status, the Bill drawn up for this purpose could never be passed without Royal Assent. In other words, the resident colonial government could not pass any laws without the approval of the imperial government in Whitehall. In the next article, we will discuss whether what the State and Public Bank was designed to be, what its functions should have been, and whether this was passed or not. We will then pick up the discussions on what further measures were taken by the LegCo and its settler constituency as it built upon the foundations of the colonial economy to put in place further monetary and financial arrangements. But to conclude, by 1900, three things had been accomplished in the establishment of the colonial state and economy. First was the gradual annexation of productive land for the BSAC and its white constituency. Secondly, how cheap African labour was secured and, thirdly, how Africans were drawn into the colonial monetary system. Through these processes, the foundations of the colonial economy were laid. *About the writer: Dr Tinashe Nyamunda is a lecturer in contemporary economic history (economic and social history); affiliate professor (School of Social and Political Sciences), University of Glasgow, Scotland.
Page 24 News NewsHawks Issue 173, 19 - 26 April 2024 BLESSING ZULU IN WASHINGTON UNITED States-based professor of applied economics at Johns Hopkins University Steve Hanke has called for the disbandment of the Reserve Bank of Zimbabwe, saying it has failed to stabilise the country’s currency. Harare has just launched a new currency, Zimbabwe Gold (ZiG), the sixth attempt in the last decade to de-dollarise. However, a bullish Reserve Bank of Zimbabwe governor Mushayavanhu says the new currency backed by gold, foreign currencies and other minerals will be a success and will “silence all the doubting Thomases”. Hanke maintains ZiG is dead on arrival. Voice of America (VOA) journalist Blessing Zulu (BZ) speaks to Steve Hanke (SH). BZ: Professor Hanke, what is your take on this new Zimbabwe Gold currency (ZiG)? SH: I think it’s another joke. That's my take. It's going to fail like all the other schemes that the government has come up with. And one reason for that is this, no one really has any trust in the government. If you're issuing a currency, you have to have some trust. I'm not saying a lot. But you have to have some trust. I think the level of trust in the Zimbabwe government is almost zero. BZ: But how about their assurance that this currency will be backed by gold? SH: The currency is a joke, and that promise is a joke, too. Zimbabwe suffers from something called anomie, and that is no matter what the law is or the rules they aren't followed. No one follows the law, so, the law behind the ZiG says that it's backed by gold, but no one will follow that law. And one reason they won't follow it is that they don't have the gold to back it up. Where is the gold? BZ: Well, they told the nation that there is a gold vault at the central bank, with just over one tonne, and 1.5 tonnes offshore and some foreign currency reserves, all totalling US$300 million. How much, really, is needed in terms of reserves by a country like Zimbabwe to have a stable currency? SH: It's really impossible to know because it depends on how many units of the ZiG that they issue. If they issued zero ZiGs, they'd have to have zero gold backing. You see what I mean? It's a function of how many units of the currency they're issuing. The only hope for Zimbabwe is to fully dollarise and get rid of the central bank. They have to really get rid of the central bank completely. And until they get rid of the central bank and dollarise, nothing good is going to happen with regard to the currency in Zimbabwe. As you know, I've been studying this for years and I've been doing this kind of work all over the world. So I've seen a lot of currencies and I've done a lot of currency reforms. I've stopped a lot of hyperinflations. And that's one reason that I'm referred to as “The Money Doctor”. The “Money Doctor” says the new ZiG is already on its deathbed before it even starts. No, no one believes anything that the government is saying about currency and that's why I said it's kind of a joke. Zimbabwe has become a joke. BZ: So, in the absence of a central bank what other options are there? May you explain. SH: I think that's the only option that would work in Zimbabwe because of this anomie problem and the fact that they don't follow any laws even their own laws, they don't follow. And I think the only possibility is to get rid of the central bank and dollarise. You did have a spell of dollarisation that worked very well, but the problem was you did have the central bank. And the dollarisation came to an end. Why? Because you had a central bank that was able to step in. And it's been a complete disaster after the dollarisation was dropped, after official dollarisation. I mean, Zimbabwe is very dollarised defacto, anyway. But when it was dejure, the system worked well. Biti (Tendai) was the Finance minister. Things were under control or more or less. For Zimbabwe, they did very well during that dollarisation, official dollarisation period. And then they started experimenting with different kinds of money. And the reason that they did that is they use it as a way to tax Zimbabweans with the inflation tax. So, the government lives off two things in Zimbabwe, the inflation tax and exploiting miners. So that's one reason we know the ZiG will be unsound, it will allow the country to inflate in tax. And the other tax is that the government is basically stealing from the miners. Natural resources are taxed one way or another. And that's how the government lives. Two sources of revenue. Theft from the miners and number two, the inflation tax. BZ: Let's step back a little. If Harare gets rid of the central bank, can they replace it with, say, a currency board? SH: No, a currency board will not work in Zimbabwe. I originally, in my book that I wrote on Zimbabwe, “Zimbabwe, Hyperinflation to Growth” was the name of the book, was published in Harare. Alright. I recommended the following options. One was the currency board and two was dollarisation. Now I’ve changed my opinion given the recent history since the hyperinflation; that book was written right before the hyperinflation. And, I changed my mind about the feasibility of a currency board, because to have a currency board you have to follow the rule of law and they don't follow the law and anomie is the enemy of something like a currency board. So, I would not recommend a currency board. You have no monetary institution. The government should have nothing to do, nothing to do with currency in Zimbabwe. You must get rid of the Reserve Bank and fully officially dollarise. BZ: But the new central bank chief John Mushayavanhu says he sees this new currency ending market volatility. Your take? SH: Again, do you really believe the new governor? No one does. We've heard them saying this song forever in Zimbabwe. It's really a joke, at this point it's embarrassing. BZ: So, how many months are you giving this new currency before it tanks or is battered by depreciation? SH: Oh, I think it'll start being eroded immediately. The ZiG will zag immediately. ZiG dead on arrival *New currency a joke *RBZ must be closed
News Page 25 Why ZiG will eventually fail PROMINENT local economist Professor Gift Mugano says the controversial new currency — awkwardly named Zimbabwe Gold (ZiG) — will eventually fail for a number of economic reasons, not because of critical commentaries by him, analysts and the media. ZiG is another Zimbabwe dollar, a quasi-currency or psuedo-currency purportedly backed by gold and foreign exchange reserves, but which received a major vote-of-no-confidence from the market. Below, Mugano explains why ZiG, just another version of the worthless Zimbabwe dollar, which government has been forced to abandon again as it was on a freefall spiralling towards inevitable death, will fail: Unpacking why the new currency (ZiG) will fail YESTERDAY (16 April), Honourable (Chris) Mutsvangwa held a Press conference and as usual he went on a rampage calling me all sorts of names because I raised reservations on the new currency, Zimbabwe Gold (ZiG). I thought that it is fair that I provide a breakdown of the reasons why the ZiG will fail. The ZiG will not be killed by Gift Mugano’s negativity as Ambassador Mutsvangwa would like to insinuate but by massive policy missteps mainly by the Reserve Bank of Zimbabwe and Treasury as well as the absence of structural policies. 1. Reducing interest rate from 130% (i.e., 10.8% per month) to 20% (i.e., 1.67%/ month). One can be forgiven for thinking that the RBZ is assuming that backing the ZiG with gold and cutting the zeros, the ZiG is in the same league with gold and US dollar, hence the decision to bring down annual interest rates to 20%. The reality is that ZiG is as good as ZWL (Zimdollar) and the economic environment has remained the same, that is: (a) Volatile exchange rate — the black-market exchange rate has continued to run away — we hear that it is now trading at ZiG20 (equivalent of ZWL$50 000) against USD; (b) Inflation remains high; (c) Our disposable incomes and aggregate demand have not increased because the zeros were cut; (d) Dwindling foreign currency supply caused by the double tragedy of declining export receipts (as a result of falling commodity prices) and draining of foreign currency as a result of food imports caused by drought. It is my humble view that RBZ’s decision to lower interest rates is a serious policy misfire that comes with massive consequences: (a) Unproductive lending – any rational bank would institute measures aimed at defending its asset base from shrinking. Investment into housing development and properties stands out as the most attractive investment option. In circumstances like these, there are high chances that less resources will be channelled towards the productive sector. This will militate against the survival of the ZiG. Strong currencies are backed up by production – resulting in less imports and increase in exports; (b) Speculative borrowing – without contradicting with (a), for “obvious reasons” the banks will still lend the productive, albeit it will be reasonably lower than previous years. However, anyone who pounces his/her hand on this cheap money will run to the parallel market and buy forex and service the loan by capitalising on the exchange rate spiral whilst making massive profits in the process. 2. Financing of the 25% export retentions. The RBZ will retain 25% of the exports and is supposed to credit the account of the exporter with ZiG at the prevailing rates. In subsequent points below, I logically derive the problem: (a) If we take an average annual export receipts of US$7.5 billion, it follows that the 25% export retention is US$1.875 billion. This amount must be converted into ZiG; (b) The governor indicated that the total reserve money balances are around ZWL$2.6 trillion, that is, around US$80 million; (c) The question which arises is: Where is the governor going to get the money to pay for the US$1.875 billion (i.e., US$156m per month) when the ZiG equivalent in the entire banking sector amounts to US$80 million, that is, half of the monthly export retention requirement? (d) In this puzzle, it is my humble view that there is no scope to give exporters financial instruments such as Treasury Bills (TBs) because exporters are already in dire stress as a result of falling commodity prices. The governor will be forced to print money to fund the forex retained from exporters (i.e., US$156m per month) and destabilise the rate in the process. 3. Export retention and non-disbursement of auction funds saga On 8 April 2024, the governor issued exchange control directive RZ56/2024 where declared that: (a) Outstanding auction allotments areas which have been accumulated by the RBZ for several weeks will be converted into a two-year ZiG-denominated investment (TBs) at the prevailing exchange rate and will earn an annual interest rate of 7.5%; (b) All outstanding payments for the foreign currency purchased by Treasury under the 25% surrender requirement will be converted into one-year ZiG-denominated investment (TBs) at the prevailing exchange rate and will earn an annual interest rate of 7.5%. This is a saga and an unprecedented move by the apex bank. It introduced the auction system and businesses participated in it with the faith that everything is under control only to realise later that they could not get back their monies. THIS IS NOT RIGHT. This has massive implications on businesses from different angles: (a) This is a direct violation of the property rights which is synonymous to appropriation of business monies. This is tragic. It raises despondency and worsens the trust and confidence levels which are required to foster the acceptability of the ZiG; (b) These funds are obviously part of the working capital of the affected businesses. This means that a number of companies are under serious stress — their going concern is threatened. This is WRONG. (c) The governor categorically made it clear that these outstanding balances will be converted at the prevailing exchange rate of USD:ZiG, that is, at ZiG13.56 (i.e., ZWL$33,882.72) to USD, yet some of these balances were held by the central bank when the rate was ZWL$6 000 (as at December 2023), that is, ZiG2.4. This effectively means that on 8 April 2024, when the directive was issued by the esteemed governor, capital of businesses was eroded by the governor’s directive by more than six times — business working capital is gone before we factor in further erosions which will be caused by inflation and exchange rate volatility in the next two years. For starters, the 7.5% interest rate stipulated for these funds is a mere joke, to say the least. At the end of the tenure of these instruments, the value of these monies will be nothing. If I was sitting on the boards of these affected companies, I would ask them to write off this debt and count their losses. 4. Decision to convert excess ZiG balances NewsHawks 1ssue 173, 19 - 26 April 2024
Page 26 News NewsHawks Issue 173, 19 - 26 April 2024 into non-negotiable instruments. The governor’s decision to convert the excess liquidity held by banks to non-interest-bearing non-negotiable certificates of deposits (NNCDs) with a view to mop up excess liquidity will entrench dollarisation and kill ZiG. This policy directive is coming into effect against the background of the fact that the bank balances of the ZiG and USD stands at ZWL$2.6 trillion (equivalent to US$80 million) and US$2.4 billion, respectively. Instead of the governor promoting the use of ZiG by encouraging lending towards the productive sector, he is mopping up the little ZiGs, leaving the USD balances dominating the banking sector. In this process, he is effectively promoting the USD and killing ZiG. 5. Continuation of the gold tokens. The question which is boggling the minds of many is how are the gold tokens going to be funded, considering the fact that the RBZ is still issuing the tokens and the cumulating sales of the gold tokens is approaching 1 000kgs, that is, one (1) tonne of gold? Is this one tonne of gold part of the 2.6 tonnes of gold which is backing the ZWL$2.6 trillion? The RBZ must come clean on this as this is killing the little confidence remaining. 6. Excess Liquidity from Treasury. The funding model used by Treasury to pay for infrastructure development is very problematic and is anti-ZiG. As long as the Treasury pays contractors with ZiG, the exchange rate will continue to run away as these ZiGs are offloaded on the black market. It is as simple as that. Instead of the government sending the police after the money changers, Treasury must close its tape. The police and other arms of government have no capacity to arrest the actors in the black market — cannot arrest seven million people in the informal sector. On a separate note, is the government not exposing itself by setting police on money changers? If the government has enough gold and foreign currency reserves, why is it going after money changers; after all there is tight liquidity? 7. Confidence as a country, for the last 26 years (i.e., from 14 November 1997) we lost several currencies (ZWD, USD, bond note, RTGS, ZWL, etc) and in the process we suffered massive losses in respect of jobs, savings, pensions, capital, medical aid, etc. Life has become unbearable. We have suffered enough. As they say, once beaten twice shy, we are not taking any chances. Citizens and businesses’ trust on a currency is driven by the government of the day — if the government of Zimbabwe refuses the ZiG, how can it expect us to accept the same currency? The governor’s BIGGEST MISTAKE was to declare that he will not force ZiG on fuel stations. His blunder was complemented byTreasury’s reluctance to accept ZiG in respect of government services (such as passports) and payment of duties, taxes, fees and levies. The government should have simply enforced the use of multi-currency regime in all its services and payment of duties, taxes, fees and levies. As it stands, ZiG is an orphan which has been rejected by its biological parents (government). If the biological parents of ZiG are refusing to take care of their own child, ZiG, what motivate us (citizens) to parent this orphan? Honestly, why should a bird be concerned about toothpicks if it has no teeth? Still on confidence, the biggest undoing of the governor was bad mouthing his predecessor (ref: quasi fiscal financing and "entertaining complaints") and is his failure to avail the ZiG notes on time and exposing the public to unfair pricing caused by lack of change. If it is true that Dr John Mangudya was giving in to pressures from the government, what makes Mushayavanhu think that we will trust his "not under my watch" mantra to pass the test of time at the Reserve Bank? This, together with the cessation of payment platforms which negatively affected the general public to transact, worsened the confidence level. People are angry. This situation is worsened by the fact that there were no extensive consultations which were carried out by the RBZ. The issue of currency sensitivity was no longer an issue because President Mnangagwa had already indicated that his government was going to introduce a structured currency. He gave policy direction, right? At that point, the RBZ should have hit the ground and hold stakeholder consultations across the country (town hall meetings, community meetings, dialogue with businesses and technocrats). These consultations were supposed to be heart-to-heart consultations because they were supposed to be built on the understanding of the pain which citizens and businesses went through as a result of the currency crisis. Most importantly, the RBZ was supposed to listen to everyone’s fears, concerns and give them assurances. These assurances must be reflected in government policies. As it stands, the RBZ ambushed us and they want us to run with the ZiG when we have so much fear. They have not cared to talk to us and build consensus so that we walk this ZiG journey together. 8. Absence of robust structural policies. The ZiG must be anchored by production. Structural policies such as industrial, agricultural and trade policies must be recalibrated with a view to building a productive, exporting and prosperous economy. We spend over US$4 billion annually importing commodities which we can produce locally: cereals, fruits and vegetables, soyabean, wheat, toothpicks, chewing gums, pampers, tissue and paper, etc. This tells us that we need to relook at our policies with a specific focus to substitute imports. Likewise, the fact that 92% of our exports are constituted by commodities [minerals (70%) and agricultural products (22%)], tell us that we need to recalibrate our industrial and export policies with a view to changing our exports towards diversified and value-added exports. It is on the basis of the foregoing submissions that I have serious reservations on the success of ZiG. Those who are close to Comrade Mutsvangwa, please tell him that I am humbly asking him and his party to allow me to enjoy the fruits of our Independence by allowing me to exercise my constitutional right to freedom of expression. By the same token, please tell him that I am just a humble guy from Chimanimani who has one goal — dying to see a prosperous Zimbabwe and my approach is centred on providing independent and incorruptible comments on the fault lines in our policies so that government of Zimbabwe can consider them for policy improvements. Yours Truly, The Professor of the Poor. Professor Gift Mugano
News Page 27 ZANU PF spokesperson Chris Mutsvangwa says the ruling party unreservedly supports the newly-introduced Zimbabwe Gold (ZiG) local monetary unit, claiming it is a gold-backed currency. He says this shows government has now gone back to the country’s historical monetary system which was gold-driven. Mutsvangwa said gold has always been Zimbabwe's economic mainstay and its currency historically. He says gold spans different civilisations and outdates the United States dollar — the world's main reserve currency — while castigating those who trust the greenback and not the worthless Zimbabwean currency which has had various versions, including psuedo units. “Gold has always been the mainstay of Zimbabwe’s economy. In pre-colonial times, Great Zimbabwe civilisation subsisted on gold. You cannot build these citadels when the currency is not reliable; that requires a consistency in stability of the currency. Gold has been our currency for a long time,” Mutsvangwa told reporters at Zanu PF headquarters in Harare on Monday. “(Cecil John) Rhodes came to Zimbabwe for gold. There is historical logic in the introduction of the ZiG and backing it with gold. President (Emmerson) Mnangagwa looked at our history and what has backed Zimbabwe before. “The anti-government economists have a fetish for the US dollar; they worship it. But the United States dollar is less than 300 years old because America became a country around 1779 (sic). All this civilisation existed before America became a country." Analysis of Mutsvangwa's claims While Zimbabwe has a history of using gold as a commodity and being part of the gold standard during colonial rule, it is untrue that gold has always been the country’s economic mainstay and its currency. There is no truth in this at all. Zimbabwe has mined, bartered and traded gold for centuries, but it was never the economic anchor and its currency. Agriculture has always been Zimbabwe's economic mainstay. The country has had various currencies, none of them gold, except during barter trade. Zimbabwe sold gold to pre-colonial traders and later after colonial occupation to London as the then global financial capital and the gold trading hub of the time, becoming part of the gold standard, but gold was never its currency even during Rhodesian times. A brief summary of the gold standard and Zimbabwe's experience will suffice. Until fairly recently, gold played a central role in the workings of the global economy, helping governments to control the value of their currencies. Back in the nineteenth century, the gold standard was used to fix the price at which gold can be bought and sold. In Britain, the use of silver as the main monetary metal had been falling for years, driven down by wars and international trade deficits. Then, in 1717, Sir Isaac Newton, as master of The Royal Mint, set up a new mint ratio dramatically reducing the amount of silver in circulation, an act which was followed by the introduction of the new gold sovereign in 1816. This led to the establishment of the world’s first formal gold specie standard in 1821, in which the monetary unit was tied to the value of circulating gold coins. Following Britain’s adoption of the gold standard, several other countries began to follow suit — first Canada in 1853 and then Newfoundland in 1865. The US established its own standard in 1873, using the eagle as its unit, while Germany followed America’s lead the same year with the introduction of the gold mark. For years, the gold standard was successful in providing a way for countries to keep their exchange rates stable and encourage the growth of international trade. But then Britain left the gold standard in 1931 followed by the US in 1971, and instead the international monetary system came to be based on the dollar. Currently, there are no countries still using the gold standard system. When Britain abandoned the gold standard in 1931, Rhodesia was only eight years as a self-governing territory and 41 years in existence. That is why beginning 1932 the Southern Rhodesia Currency Board issued coins. The British Pound Sterling (GBP) coins circulated in Rhodesia and remained legal tender until 31 December 1954. There is an idle debate about the need to go back to the gold standard, especially during economic crises in some countries. This is now convenient grist for the Zanu PF propaganda mill. Little is pubDebunking Zanu PF spokesman Mutsvangwa's gold propaganda Zanu PF spokesperson Chris Mutsvangwa NewsHawks 1ssue 173, 19 - 26 April 2024
Page 28 News NewsHawks Issue 173, 19 - 26 April 2024 licly known about Zimbabwe's monetary history, hence officials get away with reductionist explanations, exaggerations and even lies. It is high time enquiries into Zimbabwe's monetary history are made to serve as a logical preamble to contemporary debates on the issue. In an article titled Money in Zimbabwean History: A Concise Currency Timeline, Dr Tinashe Nyamunda, a lecturer in economic and social history at the University of Glasgow in Scotland, shares insights into Zimbabwe's monetary history exposing Mutsvangwa's misleading guesswork and political bluster. He traces the country’s fiscal and monetary history back to 1890 up to date. Nyamunda shows how Cecil John Rhodes and the British South Africa Company, which colonised Zimbabwe from the Cape Colony in South Africa, proclaimed Ordinance No.3 (1891) setting a sterling-based currency coinage of the Cape Colony as Mashonaland's currency. The sterling was part of the gold standard until the British abandoned the system in 1931. The gold standard was used for centuries before fiat money took over with the Bretton Woods Agreement of 1944. The coinage used in the Cape Colony and then Mashonaland was minted at the Royal Mint in London. But there was a shortage of specie (money in coins rather than notes) throughout the period until Rhodesia became a self-governing colony in 1923 after the end of company rule. To resolve this problem, a number of interventionist measures were put in place. Instead of using coins for trade, cheques were introduced after 1890. These were drawn on the first bank introduced in Rhodesia, the Standard Bank of South Africa. Yet these cheques were also equally unreliable like the coins. So some other methods of payment were also introduced. For instance, in 1895 the Civil Commissioner of Bualwayo, Hugh Marshal Hole, issued stamped coupons to mitigate currency shortages. This compares well to several psuedo-currencies which have been used in Zimbabwe such as the traveller's cheques, special agro-cheques, bearer's cheques, bond notes and ZiG. ZiG is a pseudo-currency which the authorities, including Mutsvangwa, are badly struggling to market claiming it is gold-backed and anchored on foreign exchange reserves, meaning a paltry 2.5 tonnes of gold and a mere US$100 million. After the British South Africa Company Pioneer Column invaded present-day Zimbabwe in 1890, sparking subsequent uprisings, Mashonaland and Matabeleland territories, which were administered by the company separately, were united as Southern Rhodesia in 1901. Southern Rhodesia became a British colony on 1 October 1923 as a self-governing territory. It was later integrated as part of the Federation of Rhodesia and Nyasaland (comprising Malawi, Zambia and Zimbabwe) from 1 August 1953 until 31 December 1963. After the federation, Rhodesia declared independence on 11 November 1965, but because it did not allow black people representation in government, Britain imposed sanctions against it — real sanctions, not these mild and targeted ones Zanu PF officials scream about when it is politically convenient and expedient. Rhodesia under Ian Smith severed ties with Britain and established the Republic of Rhodesia on 2 March 1970. The dollar was introduced on 17 February 1970, about two weeks before the declaration of the republic. The dollar proved to be a strong currency, at par with the pound sterling right up to the very end of Rhodesia in 1980, when it was replaced by the Zimbabwean dollar at the same exchange rate. However, the Rhodesian dollar was never a fully convertible currency and its exchange rate was thus not an indication of underlying macroeconomic fundamentals. In adopting the Rhodesian dollar, Salisbury followed the route of South Africa, Australia, and New Zealand in that when it embraced the decimal system, it decided to use the half pound unit as opposed to the pound unit of account. The choice of the name dollar was endorsed by Rhodesian minister of Finance John Wrathall who regarded it as having international substance, credibility and acceptability. This is what ZiG does not have. When the Rhodesian dollar was introduced at par to the pound, the currency was manufactured as follows: bronze 1⁄2 and 1 cent and cupro-nickel 2+1⁄2 cent coins were introduced, which circulated alongside the earlier coins of the Rhodesian pound for 5, 10, 20 and 25 cents denominated in shillings and pence. New 5-cent coins were introduced in 1973, followed by 10, 20 and 25 cents in 1975. Coins were struck until 1977 at the South African Mint in Pretoria. Rhodesia had both 1⁄2 cent and 2+1⁄2 cents coins, just like in South Africa. There were no gold coins. Rhodesia was then expelled from the sterling area and abandoned membership in the International Monetary Fund. That is why it introduced the Rhodesian dollar. On 3 March 1978, Smith signed an agreement for the internal settlement with some black leaders, Bishop Abel Muzorewa, Ndabaningi Sithole and others. The country was then renamed Zimbabwe-Rhodesia on 1 June 1979 before it declared its independence on 18 April 1980 as Zimbabwe. On 2 January 1979, the Reserve Bank of Rhodesia replaced the watermark of Rhodes with that of the Zimbabwe Bird, following the Internal Settlement. In 1980, Zimbabwe introduced the Zimbabwe dollar which has had various versions since then, including ZiG announced 11 days ago. While Zimbabwe was a major source of gold for Arabs and the Portuguese for centuries, no coins were produced locally until the 1880s when British coins came. South African coins circulated between 1923 and 1933, but beginning in 1932 the Southern Rhodesia Currency Board issued coins for Zimbabwe. British pound sterling (GBP) coins circulated in Rhodesia and remained legal tender until 31 December 1954. Banknotes issued by the Standard Bank of South Africa, National Bank of South Africa and Barclays Bank DCO also circulated in Southern Rhodesia. When the Southern Rhodesia Currency Board was formed on 1 November 1940, banknotes lost their legal tender status on 1 March 1942. The currency board issued its own pound. Northern Rhodesia and Nyasaland became part of this arrangement in 1943- 1944. The currency board's name was changed to the Central African Currency Board on 12 March 1954 and Northern Rhodesia and Nyasaland gained a larger role in the new currency board. Coins issued by the currency board then replaced the British coins that had circulated until that point. The Bank of Rhodesia and Nyasaland was founded on 1 April 1956 and became the Central Bank for the Federation of Rhodesia and Nyasaland, issuing the Rhodesia and Nyasaland Pound. The Reserve Bank of Rhodesia replaced the Bank of Rhodesia and Nyasaland on 1 June 1965 and made the pound divisible into 20 shillings or 100 cents. After the Unilateral Declaration of Independence in 1965, the Rhodesian dollar replaced the Rhodesian pound. Two Rhodesia dollars were equal to 1 Rhodesian pound, and divisible into 100 cents. When Zimbabwe gained independence on 18 April 1980, the Zimbabwe dollar replaced the Rhodesian dollar at par. At no given time in history has gold ever been Zimbabwe's economic mainstay and its currency as Mutsvangwa has repeatedly claimed without any iota of evidence beyond threadbare generalisations peddled on several occasions and platforms in defence of the new pseudo-currency, ZiG. — STAFF WRITER
News Page 29 FORMER Reserve Bank of Zimbabwe (RBZ) governor Gideon Gono says Zanu PF spokesperson Chris Mutsvangwa is peddling "blatant lies" when he says the country’s gold reserves were stolen as they were supposedly sold to Saudi Arabia without payment. In a public statement, Gono says what Mutsvangwa was clearly referring to during his ruling party media briefing on Monday was a US$150 million 2006 jewellery deal between the RBZ and a Saudi company which the central bank leveraged with a South African bank to secure a US$600 million line of credit for the country to get much-needed imports like electricity, fertiliser, fuel and other supplies at the height of Western economic sanctions on Zimbabwe imposed in 2002. Targeted sanctions choked the government and its operations, he says. Gono says Mutsvangwa was not even around when the deal was sealed as he was Zimbabwe's Ambassador to China in Beijing at the time and does not have facts and know the truth of what actually happened. He says Mutsvangwa and others have previously sent the authorities on wild goose chases on the urban legend, including by getting the Anti-Corruption Commission of Zimbabwe (Zacc) to probe the issue; wasting public funds in the process. Zacc investigated the issue, as they interviewed him and his successor John Mangudya, but found nothing wrong with the multi-million-dollar gold deal, he adds. Gono says if such brazen lies go unchallenged they would do irreparable damage to people's reputations through character assassination and systematic misrepresentation of the facts. He further says people like Mutsvangwa, who happens to be his uncle, do not know what they are talking about and how dire the situation was when he took over at the helm of the RBZ in December 2003 as there were no reserves at the bank to talk about. Gono says when he took over in December 2003, the RBZ was broke and he was running on empty from day one. Read Gono statement below: SETTING THE RECORD STRAIGHT: NO “GOLD RESERVES” WERE EVER STOLEN BY ANYONE DURING MY TENURE AS RBZ GOVERNOR UNDER FMR. Late President RGM’s WATCH. 1. Recent pronouncements by Hon.Chris Mutsvangwa, falsely alleging that the Reserve Bank of Zimbabwe (RBZ) lost an unspecified quantity of gold to an unnamed Arab country during the tenure of an “unnamedGovernor” who”served under the late Former President R.G.Mugabe ( MHDSRIEP) put the Nation in a state of unnecessary frenzy. If such lies are left unchecked with authentic facts, they could become that “little spark” that sets alight a whole forest at a time when the Bank (RBZ) and the country at large, have more important issues to deal with than waste time attending to veld-fires whose uncontrolled consequences could end up melting whatever confidence the Bank is trying to build around itself, the country and this great Nation at large… and how dare we dampen people’s spirits at this “celebratory hour” with blatant lies! 2. Ordinarily, past Governors are not supposed to comment publicly on matters “current”which a sitting Governor is capable of dealing with regardless of which period those matters occurred. However in this case, I feel the need for leadership in dealing with this matter, so that there is we do not burden our new Governor Dr John Mushayavanhu or immediate past Governor Dr John Mangudya, with an historical matter that I can easily deal with myself without “ambiguities" or the need to look for “sekuru Ndunge”(the late doyen of traditional healing and forecasting” to return from the other world so he can provide spiritual proclamations to something that is so straightforward, simple ( if we respect TRUTH)and explainable in plain, non-technical English. 3. If this explanation still proves difficult to understand, I would advocate that we ask His Excellency President E.D. Mnangagwa to set in a Commission of Inquiry in terms of the Commission of Inquiry Act( Chapter 10:07)incorporating all interested parties to look into this serious allegation of perfidious proportions and report to the Nation its Findings in simpler language than i would have done here. 4.Ordinarily too, no Governor would want to comment publicly on any matters he/ she dealt with while in Office because The Official Secrets Act( Chapter 11:09) by which binds and prohibits us from commenting on specific documentation recieved or matters of the State dealt with during our periods in Office (Section 4 is particularly telling (level 14 fine or 20 years in jail or both if violated) but I am risking that by putting the record straight in a manner that cleans the image of the Nation’s Central Bank. 5. The third reason I have decided to take the bull by the horns is the ambiguous nature of the allegations, casting aspersions on many distinguished personalities who served as Governors under Former President RGM and still carry “scars and pride” of national service equal only to a few living souls around during one of the most difficult economic episodes of our country. 6. Their( Ex Governors) integrities ought to be respected and protected in retirement, as well as those the Hon. Ministers of Finance under whom they served and reported to. It is my duty to set the record straight for their sake as well as mine, so that our new Governor does not take his eyes off the “ZiG ball” to go into the archives of 18 years ago, searching for files and records for a response to this little fire that has deliberately or inadvertently been started with checking facts with all concerned. 7. For the record, former Governors for the period concerned which excludes our inaugural independence Governor the late Dr K. Moyana( MHDSRIEP) ( 1983-93)are: Dr L. L. Tsumba (1993-2003) part of the sanctions period 2001 to May 2003); Acting Governor Charles Chikaura (May 2003-November 2003); Acting Governor Dr Charity Dhliwayo (December 2013-April,2014); Dr John Mangudya (May,2014-November 2017). These periods were under Late Fmr. President RGM. I am sure all of them have suffered some distress because the statement from the Hon. Ambassador Spokesperson was ambiguous as to who among us could have been that dump or daft! Now they can all sit back and tell their families and friends “no it was not me whom was being referred to”!. 8.I proudly served the longest of that sanctions period, 10 years in all, giving my country the best I could, from 1 December 2003 to 30 November, 2013 and it is natural to guess then who did what and when. UPFRONT… 9.Upfront, in summary, let it be known by all that we are talking here Gono dismisses Mutsvangwa's gold grand heist allegations Former Reserve Bank of Zimbabwe governor Gideon Gono NewsHawks 1ssue 173, 19 - 26 April 2024
Page 30 News NewsHawks Issue 173, 19 - 26 April 2024 of what COULD, if it had succeeded, have been a “structured gold-backed transaction" which required mining the gold from underground in the first place, then export it in exchange for funds that would have been delivered and repackaged “fourfold in the first place” involving international banks and all above board, but after the first transaction amounting to US$5m deposit was executed by RBZ, the transaction failed on the other side and all parties to the envisaged transaction reimbursed each other, with no prejudice incurred or suffered by any of the parties to the transaction and ultimately, no GOLD was mined from underground for further export in terms of the initial Agreement which is now causing a hullabaloo due people who were not part of the RBZ team trying to confuse the Nation instead of letting us is happily celebrate our 44th UHURU! One frowns at the timing of the release of such “news” even if , by any stretch of imagination, it was true!We need a little bit of finesse and circumspection in the discharge of our duties when it comes to the dissemination that has potential to harm the reputations of others in our positions as leaders! Please. 10. That’s the summary but here are the details. Background… ————————- 11.Managing this economy during the period 2000 to 2017 was not a “walk in the park” for any Governor. The full story is yet to be written about the trials and tribulations of the times but that is for another day. 12.Some of us got onto the Sanctions list in 2001 and so for 23 years we were not as free Zimbabweans as some amongst us. Again for another day. We will always come out of retirement and defend the country when someone tries to burn it by setting the record straight when necessary. 13. The country survived through a series of non-conventional gymnastics at a time when it was easier to give up than to accept thankless national service with all its risks in an environment of severe sanctions, international isolation, mono-currency and politically driven hyperinflation. It was a period most people witnessed the futility of trying to turn around our economic fortunes in an environment of needless political confrontation and conflict among fellow citizens. Again, that’s for another day. The RBZ Gold Contract of 2006… 14. When making public statements from positions of authority, we must resist temptation to be excitable and ambiguous, particularly when dealing with matters that could harm the confidence of key institutions such as a Central Bank. Facts and full facts backed by understanding the technical side of the matters at hand as well as CONTEXT are important. 15. Faced with a “no forex reserve” situation for both Government and industry, it was incumbent on the sitting Governor to find that forex by whatever legal means and be accountable for every move taken by the Central Bank and its officials. It was also important to keep the Principals, especially the President fully in the picture and to ensure that at the end of each year, the Bank’s books were audited by at least two of the big 5 external international audit firms and results submitted on time to the Minister of Finance and Parliament. 16. The RBZ, during my tenure, was at different times annually audited by Delloite & Touché, KPMG, Ernest & Young as well as by Kudenga & Co BDO. At no time during my ten years at the Bank did we get qualified accounts. 17. In May, 2006 RBZ, after getting express approval from H.E. Cde. RGMugabe, entered into an Agreement with a large Jewelry Company based in Saudi Arabia. 18. The contract sought to provide Zimbabwe with an immediate cash injection of US$150m.At the same time, we negotiated with a large South African Bank to deposit that money with them as cash security in exchange for a Guarantee Line of Credit 4 times that amount ie. US$600m which was to be used for importation of goods and services from South Africa particularly electricity, fuel, grain, fertilisers, mining inputs, machinery etc. in a 3 month revolving basis for 12-24 months as long as the cash backing was there. 19. The Guarantee was to cost us 1-2% negotiable at time of execution while the Saudi deal required us to supply over the same period a total of 200,000 Troy ounces of gold at a discount of 34% London Bullion price on day of trading/delivery. 20. The discount was on paper very steep but overally when we worked out the sums against the imminent risks that were facing us, we saw ultimate benefit to this economy through the multiplier effect of running the $600m facility on a 3 months cycle for 24 months against gold which was still UNDERGROUND worth between $140-150m to be supplied over a 24 month period while the economy got $600m for immediate use 8 times at a cost of day 1,5%per annum fees. Here is the arithmetic: 21. It is over ten years since I left RBZ but I still have the conceptual framework in my mind of what was going to happen if it had worked and I am still an Accountant and banker at heart: 200,000 Troy Ounces value $150m ———— Cost (Discount)34% 51m Guarantee Fees to SA Bank 18m ———— Total Facility cost over 2yrs $69m ———— Income Side: ——————- Raising Fees charged to Zim Customers per quarter: 0,0075x$600 x 8 =. $36m Interest @ 5% /quarter. $60m Interest on int. & Fees 7m ————- Total Income to the Bank $103m Less cost of Facility. (69m) ————— Net Income to RBZ. $34m —————- Equivalent to a gain of 50,000 Troy ounces of gold in the 2 years the facility was planned to run for. 22. That amount would have been more than sufficient for the Bank’s iwn operating expenses without the need to knock on Treasury for support from tax-payers funds! 23. The Bank was required to pay $5m worth of Gold as a deposit and this was paid. When the lender couldn’t deliver the cash backing per contract, the Agreement was canceled and RBZ got back its US$5m.No prejudice to anyone. 24. It is important to also realize that we were dealing with an internationally recognized Jeweler and the Saudis are generally very honest people. And to say “ our gold reserves was stolen “ is wrong. We despatched about 7500 or so Troy Ounces worth $5m. We got back our $5m. At that time, in May, gold price was about $700/ oz.if I’m not mistaken. Some Basics…. ——— —————- 25. What is the meaning of Gold Reserves? 26. The term RESERVES generally refers to any surplus to immediate requirements. 27. Gold Reserves in this case would mean that RBZ had accumulated at some stage, surpluses to its immediate needs but nothing could be further from the truth… I got into a car that had no fuel on 1 December 2003 and I did my best to drive it on empty. 28. The Saudi contract was going to be fulfilled over a 12-24 months from incremental gold coming from the ground. We had done our homework as far as who the off-takers of the facility were going to be. It was not a blind shot so to speak. 29. To then mislead the public by saying RBZ lost the Nation’s “Gold Reserves” is surely technically wrong and dangerous, worse when we seek to badmouth and besmirch the dead. Inga zvinonzi “ wafa Wa aka” wani? Why this penchant towards hate-speech against those you were with in the bush but never against Ian Smith? Nobody has bothered to find out how the RBZ was being run during the 15 years of sanctions and what some of us found in whatever records remained in there. 30. I certainly am not a direct descendant of St Peter or any of the Apostles who probably did not make mistakes but whatever mistakes my Team and I made during my tenure were neither deliberate nor fraudulent as all the audited set of books during my time there can attest. The Zimbabwe Anti-Corruption Commission (Zacc). It is this same kind of irresponsible talk we witnessed from Hon. Ambassador Chris Mutsvanga who also happens to be my uncle, which in September/October 2021 led to Zacc spending public money and hours on a wild-goose chase after an anonymous someone misled Zacc to think the same way Zimbabweans have been emotionally whipped to think likewise. 32. Zacc carried out extensive investigations into this matter under Ref. 58/12/20 and 102/11/20 examining documents and interviewing RBZ Governor Mangudya, Mr Azvinandaa Saburi ( Director of Financial Markets who signed the Contract with Saudis under my authority) and others including myself in September 2021 and concluded that everything was above board and that there was no prejudice to anyone including RBZ and the Nation at large. Need to verify full facts .. 33. It is key and important for people entrusted to speak on behalf of important organizations and political parties to always check their facts thoroughly for the sake of their own credibilities and that of others. 34. I forgive my sekuru for he was misled into believing that something was really amiss and more importantly, he was in the People’s Republic China as our Ambassador at the time we were battling to sort this economy out so he wouldn’t have been aware of some of the difficulties we went through to try and raise funding, including that required to support our esteemed embassies. 35. This country could benefit more from our individual and combined efforts if we sincerely direct them towards what our President, H.E. E.D. Mnangagwa and the Second Republic are trying very hard under difficult circumstances to achieve than to engage in blame-games that will not strengthen our new currency or take us foward especially during the country’s period of UHURU brought about by my sekuru and others. 36. Happy 44th to us All. I cherish the wonderful work being done by the Second Republic and salute all our National Heroes and Heroines, gallant fighters of our Liberation War, Mujibhas and Chimbidos. 37. Be advised ALL, that no gold was lost during my time as Governor. Dr Gideon Gono. RBZ Governor During Biting Sanctions: (2003-13). 17 April, 2024. — STAFF WRITER. Zanu PF spokesperson Chris Mutsvangwa
News Page 31 BRENNA MATENDERE UNIVERSITY of Cape Town constitutional lawyer Dr Alfred Mavedzenge says President Emmerson Mnangagwa is in a catch-22 situation as he risks causing an implosion in Zanu PF if he backtracks on his statements that he will not push for a third term in violation of the constitution. On the other hand, says Mavedzenge, sticking to his promise could confer him the status of a statesman for posterity. After winning the 23 and 24 August elections last year amid strong rigging accusations by the opposition and condemnation by Southern African Development Community, Mnangagwa has been seen to be pushing for a third term. The scheme involved garnering a two-thirds majority in the lower house of the bicameral Parliament through use of self-imposed secretary-general of the Citizens' Coalition for Change (CCC) Sengezo Tshabangu who instituted recalls of opposition lawmakers. Zanu PF officials then latched onto the infamous slogan “2030 VaMnangagwa vanenge vachipo (2030 Mnangagwa will still be there) which implied he would rule beyond the constitutional limit of his second term that ends in 2028. However, in a recent interview published by state media, Mnangagwa said he will not seek a third term as he has no intention of violating the constitution. “There is not an iota of evidence where Zanu PF or I, as President, has ever expressed the violation of our constitution,” the 81-year-old said. “We in Zanu PF are very democratic and we obey the constitution." In an interview with The NewsHawks, Mavedzenge, who is a senior research fellow at the University of Cape Town where he attained a PhD in constitutional law and an LLM in constitutional and administrative law, said he believes Mnangagwa is not being honest in saying he is not interested in a third term. “I think he is not being honest. He has not been so in the past. He is giving an impression he is now okay, which is a positive thing. It's beneficial to both Zanu PF and outside that leaders can come and go. “He lost an opportunity to democratise since taking over power and I think he is now in a catch-22 situation. If he does not backtrack on his promise that he won’t seek a third term, that will redeem his legacy in that regard. However, if he pushes for a third term there will be implosion within Zanu PF and even outside the party,” he said. Mavedzenge said some lessons can be taken by Mnangagwa from the case of Guinea's former president Alpha Condé. Condé changed the constitution amid bloody protests from the opposition, before winning a controversial third term. However, special forces commander Colonel Mamady Doumbouya staged a coup and placed power in the hands of the military junta. “People reach a point where they become tired of a leader. That is what happened to Condé and back in Zimbabwe to the late President (Robert) Mugabe. So many lessons can be learnt from the case of Condé. Mnangagwa is re-aligning the military but he risks a rebellion from the system itself if he pushes ahead with the third-term bid,” said Mavedzenge. “Mnangagwa has a golden opportunity as a leader to do the right thing by not seeking a third term. We have an example of Kenneth Kaunda (Zambia's founding president). He was a bad leader for his people during his reign. Kaunda was terrible, including his foreign relations policy, and his domestic policy was bad, but when he died he was internationally acclaimed. He did one thing right at the end. He handed over power to Frederick Chiluba. He conceded defeat,” said Mavedzenge. He reiterated that Mnangagwa also has an opportunity to do one thing right that can redeem his legacy which is to hand over power after his constitutionally mandated two terms end in 2028. “He will have a peace of mind if he does that. Even if Nelson Chamisa wins the elections, he will not arrest him,” said Mavedzenge. Mnangagwa in catch-22 situation NewsHawks 1ssue 173, 19 - 26 April 2024
Page 32 News NewsHawks Issue 173, 19 - 26 April 2024 BRENNA MATENDERE ATTORNEY-GENERAL Virginia Mabhiza has issued a vague statement to The NewsHawks on how the government will distribute state funds meant for the opposition Citizens' Coalition for Change under the Political Parties (Finance) Act, amid concerns that taxpayer dollars could be used to scandalously enrich elements subverting voters’ democratic rights such as the party's self-imposed secretary-general Sengezo Tshabangu. Tshabangu wantonly recalled CCC elected MPs to give Zanu PF a two-thirds majority in the National Assembly. Nelson Chamisa, who contested the 2023 elections as the CCC presidential candidate, quit the party in a huff, citing heavy infiltration. The CCC has now fragmented into three factions: one led by Tshabangu, the other by by Professor Welshman Ncube and another loyal to Chamisa. When asked how the government will distribute the money, given that there are now three factions of the CCC, Mabhiza, who is the government’s top legal adviser, said: “Government will release funds to the party with representation in Parliament in accordance with the law.” When pressed further to clarify how that will happen, given that the CCC has fragmented into three formations, Mabhiza still remained evasive. “In the absence of any official communication about the representation in Parliament, and adherence to the legal procedures regarding the status of the members of Parliament belonging to that political party, government will deem it proper to disburse the funds in the manner described above,” she said. Justice minister Ziyambi Ziyambi did not respond to questions from Tge NewsHawks. However, political scientist Professor Eldred Masungure said while it is almost certain that the CCC's allocation of state funding will be given to Tshabangu, this would be unfair to citizens whose democratic will he has subverted. “Strictly speaking, this must be settled based on a legal interpretation of what the Political Parties (Finance) Act (PPFA) stipulates, but it’s more likely that politics will cloud jurisprudence. To this extent, I see what many regard as Zanu-PF’s proxy — Sengezo Tshabangu — getting either the whole share or a large chunk of it. In any case, if the matter goes to court, given the alleged capture of the judiciary system, Tshabangu is again bound to emerge victorious — weird though it might be. “In the first instance, subverting citizens’ democratic rights is manifestly and unambiguously unfair and a vitiation of the rights of voters to vote for representatives of their choice. This has a lot to do with the egregious recall clause (section 129(1) (k)) of the constitution. The core problem is with the legislation that establishes virtually no conditions as to the use of the funds distributed under the PPFA. Once the money is disbursed by the state, there is no accountability at all as to what happens thereafter, with the recipient of the funds virtually enjoying unlimited degrees of freedom to use (or abuse) the money,” he said. Asked to express his view on the assertion that perhaps this law should be amended or repealed so that wishes of voters are respected and also so that no one can hijack taxpayers' money and use it to fund anti-democratic politics, Masunungure said: “Legislation to fund political parties that meet the stipulated threshold is necessary for expansion and deepening of electoral democracy, but there must be strict but reasonable conditions attached. This is the case in many other jurisdictions, even in the advanced democracies. It is these conditions and attendant penalties for violating them that appear missing in Zimbabwe’s PPFA. As such, the legislation needs to be comprehensively amended to inject robust accountability mechanisms that ensure that the funds disbursed are used for legitimate and well-intentioned reasons. In short, it is vital to guard against throwing out the baby with the bathwater.” He reiterated that irrespective of Zanu PF’s infiltration of opposition parties and converting them into its appendages, the current PPFA is too loose and needs to be tightened to curb the rampant abuse that is presently the norm. Professor of world politics at the University of London's School of Oriental and African Studies, Stephen Chan, concurred. “All other countries with a multiparty system have stringent audit requirements to account for the expenditure of such funds which may be only expended in any case subject to gazetted rules,” he said. “The government should fund the faction that can demonstrate most seats in Parliament, but it must have discernible and clearly transparent party structures, including very much the transparency in terms of accounting for funds. Many countries have systems that fund political parties.” Chan also pointed out that the CCC under Chamisa exposed itself by not setting up structures which is now backfiring ahead of the release of state funds. “In Zimbabwe's case, it certainly seems to be the case that external sabotage against the original CCC had a huge impact — but the CCC was open to such sabotage; it had no structures or systems to prevent it. The external sabotage hit an open target,” he said. Tshabangu poised to grab CCC windfall CCC self-imposed secretary-general Sengezo Tshabangu
News Page 33 NATHAN GUMA PRESIDENT Emmerson Mnangagwa extended amnesty to over 4 000 prisoners, including some who were on death row, on Independence Day, but legal grouping Veritas says the order is riddled with drafting errors that require immediate attention. The amnesty, issued through Clemency Order No. 1 of 2024, benefits female, older and juvenile inmates, the terminally ill and some who were originally sentenced to death. Those previously on death row but had their sentences commuted to life terms in previous clemency orders or through court appeals are to be freed provided they have been in prison for at least 20 years. In an analysis, Veritas said President Mnangagwa erred in granting amnesty to juveniles and elderly people, while excluding those charged under the Criminal Law (Codification and Reform) Act, as most crimes committed are tied to it. “The amnesty is a noble attempt by the President to show forgiveness to prisoners on this day, the 44th anniversary of our Independence. It is most unfortunate that the amnesty has been marred by what must be drafting errors, and we hope they will be rectified without delay. The exclusion of juveniles charged under the Criminal Law Code must surely be a mistake,” reads the analysis. “The Code covers pretty well all wellknown crimes, which range in seriousness from treason and murder to mischievously knocking on doors and throwing litter in a public place. It is hard to think of any crime of which a juvenile might ordinarily be convicted that is not covered by the Code. Most if not all the juveniles currently in prison have been charged under the Code. If the Order is not amended they will not be entitled to release.” “Prisoners who are 60 years old and older are entitled to be released if they have served one-tenth of their sentences, provided they were not charged under the Criminal Law Code. This means that most if not all these prisoners will have to remain in prison.” While there are general exceptions to the amnesty, Veritas said some of them were widely expressed, which is likely to result in the overlooking of some prisoners. For instance, while the order releases female prisoners who have served at least one-third of their sentences, this did not however apply to prisoners who were convicted of "specified offences". The specified offences include murder, treason, sexual offences, carjacking, robbery, public violence, human trafficking, unlawful possession of firearms, and contravening the Electricity Act, the Postal and Telecommunications Act or the Maintenance of Peace and Order Act or POSA. “Some of these specified offences are too widely expressed. Many of the offences under the Electricity Act, the Postal and Telecommunications Act and the Maintenance of Peace and Order Act could be minor fairly minor – failing to submit returns, or disorderly conduct in a post office, for example – and there is no reason why prisoners who have committed those offences should not be amnestied,” reads the analysis. While the order said prisoners serving more than 48 months are entitled to an additional remission of one-quarter of the effective term of their imprisonment, Veritas said there is no clarity on the additional remission. According to the analysis, the order also falls when it rejects amnesty for prisoners that are terminally ill and those with certain disabilities who are charged under the Criminal Law (Codification and Reform) Act. “Prisoners who have been medically certified as terminally ill are entitled to be released. Once again, under this Clemency Order, this does not apply to prisoners who were charged under the Criminal Law Code – which means, as we pointed out above, that most of these prisoners cannot be released,” reads the analysis. Prisoners who have served one-third of their sentences and who are visually impaired or “are physically challenged to the extent that they cannot be catered for in a prison or correctional environment” are entitled to be released. “If prisoners are so disabled they cannot be catered for in prison, one shudders to think what they may have endured while serving their sentences so far. One wonders too why they were sentenced to imprisonment in the first place.” Last year, former Public Service minister Prisca Mupfumira, who once said she could not face a corruption trial due to mental illness, was sworn in as senator, four years after being charged for grand corruption involving US$95 million at the state-run National Social Security Authority (Nssa) pension fund. This raised questions over whether she would be able to effectively perform her duties as a senator. Meanwhile, prisoners with disabilities but are charged under the Criminal Code have been excluded from the amnesty. President's amnesty order riddled with errors President Emmerson Mnangagwa NewsHawks 1ssue 173, 19 - 26 April 2024
Page 34 News NewsHawks Issue 173, 19 - 26 April 2024 BRENNA MATENDERE A TOTAL of 19 566 people died of Aids in the country last year, marking a significant decline compared to the past three years as public health institutions continue implementing measures to end the pandemic by 2030. According to statistics released by the National Aids Council (NAC) during a media workshop in Chinhoyi recently, last year’s figure is a decline from 2020 where the nation lost 23 427 lives to the pandemic. In 2021, a rotal of 22 159 people died of Aids while in 2022 the number dropped to 21 286. In total, as of the end of last year, a total of 1.3 million people were recorded as living with HIV. Of that figure, 520 720 are male and 782 585, female. A total of 82 711 of these are adolescents aged between 10 and 19 years. In coming up with these figures, a national technical working group comprising individuals from the ministry of Health and Child Care, NAC and other stakeholders drives the process with guidance from the UNAIDS Estimates team. The major driving factor for HIV cases has long been the rampant unsafe sexual intercourse occurring mainly in mining areas and places where there is lots of movement of people to neighbouring countries. It is partly for these reasons that in terms of provinces, Matabeleland South, which has a lot of mining and transnational movements of people to South Africa, has the highest HIV prevalence in the country at 17.3% while Harare metropolitan province, with less of those activities, has the least, at 8.88%. In the top four, after Matabeleland South, are Matabeleland North (14.43%) Bulawayo (11.75 %) and the Midlands (11.04%). The bottom four provinces are Mashonaland East (9.83%), Masvingo (9.58%), Manicaland (9.35%) and Harare. NAC chief executive officer Benard Madzima said HIV and Aids remain major challenges in Zimbabwe and even beyond. “HIV and Aids remain major challenges affecting the globe and our sub-region, which bears 68% of the 37.7 million infected with HIV globally. Of these, Zimbabwe is home to an estimated 1.3 million people living with HIV (PLHIV). “Our response has over the years reached key milestones such as reduction of the HIV incidence and prevalence as well as the expansion of the antiretroviral services and achievement of the 90-90-90 targets, which laid a strong foundation for the 95-95-95 targets which are already within our reach,” he said. He indicated that he was convinced that the proper flow of information on HIV and Aids requires a mutual partnership between the media and his organisation. “That partnership should facilitate deliberate sharing of information and accurate as well as responsible reporting, spurred by national interest and the pursuit of a development agenda anchored on the ideals of the National Development Strategy 1. “This is motivated by our strong belief in the role of the media, which has already been instrumental in improving awareness and knowledge of our people of the HIV and Aids pandemic as well as the uptake of services,” he said. Zimbabwe has recorded solid achievements in HIV and Aids prevention. Three Zimbabweans last year were rewarded for putting together research abstracts on scientific ways that can turn around HIV prevention and treatment measures at the International Conference on Aids and Sexually Transmitted Infections (STIs) in Africa (Icasa) held in Harare. In August, other researchers combined with compatriots from Uganda and Zambia, to conduct research on HIV which found safer and effective options for second-line HIV treatment in children. The research was presented during the 12th International Aids Society Conference on HIV Science (IAS 2023) held in Brisbane. In coming up with the research findings, experts from Zimbabwe who joined their continental counterparts made all children randomised to take one of two NRTI [a class of antiretroviral drugs] backbone medicines. CD4 cell counts increased across all arms and there was no evidence of a difference according to either the NRTI or anchor regimen randomisation. The findings therefore highlighted the need to develop a child-friendly fixed-dose combination of tenofovir alafenamide fumarate and emtricitabine plus dolutegravir as an anchor medicine. Alternatively, darunavir or atazanavir could be used as the anchor. The research has since been shortlisted as one of the major five findings taken from across the globe. The other four researchers presented the latest data on antiretrovirals, their side effects and how to best use them in medical care. One study found that adherence counselling reversed viral rebound on dolutegravir in 95% of cases, meaning people did not need to switch treatment. Two studies found that switching away from integrase inhibitors did not reverse weight gain, and instead, people who switched continued to gain weight at a similar rate to those who didn’t. One study looked at weight changes following a switch to a protease inhibitor-based regimen, the other following a switch to doravirine/islatravir. Researchers noted that in the future, managing weight gain could be very important for preventing metabolic disorders in people with HIV. This may include pharmaceutical interventions, but these are expensive, and studies looking at their effects on people living with HIV are needed. Aids claims 19 000 lives
BRENNA MATENDERE THE Zimbabwe Domestic and Allied Workers' Union has sued Public Service, Labour and Social Welfare minister July Moyo and some arms of government over a provision in the Labour Act that precludes domestic workers from compensation if injured or harmed in the line of duty. The National Social Security Authority (Nssa) is cited as the second respondent and the Zimbabwe Gender Commission as third respondent. Toendei Dhure, the general secretary of the union, is the applicant. In his founding affidavit, Dhure says his union’s primary objective is to protect the interests of domestic workers as defined by section 3 (e) of its constitution which entitles it to promote, support or oppose through lawful methods any proposed legislative or other measures affecting the interests of its members. The union operates in seven provinces of Zimbabwe and has a wide membership constituting a total of 6 814 members as at July 2023. As minister of Public Service, Labour and Social Welfare, Moyo, who is the first respondent, is responsible for administering the Labour Act [Chapter 28:01] and for establishing social security schemes in terms of section 3 of the National Social Security Authority Act [Chapter 17:04]. The union said many of its members have sustained injuries, some of which are permanent. For the purposes of the court application, the applicant detailed the lived experiences of domestic workers, namely Lorene Makarutse, Loriat Mungwere and Sofia Bweya, who suffered substantial injuries in the course of their employment for which they received no compensation by virtue of being domestic workers. Domestic workers are deemed employees by the Labour Act and the Domestic Workers' Employment Regulations Statutory Instrument 377 of (1992). The legislative framework considers domestic workers to be employees. This definition is also consistent with the definition of employees in the parent act, the National Social Security Act [Chapter 17:04] which was created to benefit employees. Domestic workers carry out duties similar to those in non-household employment by providing work in corporate environments but still remain excluded in the Labour Act. “I aver that the statutory right to compensation afforded to other workers and non-household domestic workers is a legal benefit that is not afforded to domestic workers and arbitrarily excluding one class of workers or category of workers is an affront to this particular right,” Dhure said. “I further aver that distinction is in direct violation of these individuals' workers' rights to benefit from a social security scheme. I further aver that the deprivation of this statutory right does not serve a legitimate government purpose thus making the deprivation irrational and in violation of section 56 (1) of the constitution of Zimbabwe. I further aver that the provision is discriminatory and such discrimination is multifaceted. “I aver that there is indirect discrimination based on gender and social status contrary to section 56 (3) of the constitution of Zimbabwe. Domestic workers in private households are generally predominantly women.” He further argues that domestic work in private households is generally undervalued due to the patronising attitudes of a historically patriarchal society. “I therefore submit that section 4 (3) (e) of the notice indirectly discriminates against women and as such must be severed down as it is inconsistent with section 56 (3) of the constitution of Zimbabwe. I aver the discrimination on gender is not fair because it deprives women carrying out domestic work the right to benefit from the statutory right to receive compensation when injured in the workplace, which right every other worker is afforded. “Such unfair discrimination is unreasonable and unjustifiable in a democratic society based on openness, justice, human dignity, equality and freedom especially when such unfair discrimination is a remnant of the colonial era.” Accordingly, Dhure wants section 4 (3) (e) of the National Social Security Authority Accident Prevention and Workers' Compensation Scheme (Statutory Instrument 68 of 1990) declared constitutionally invalid as it violates section 56 (1), (3) of the constitution of Zimbabwe. He also wants Moyo ordered to amend the Accident Prevention and Workers' Compensation Scheme, particularly section 4 (3) (e), by completely severing the whole provision as is. In addition, he wants Moyo to file with the court the amended version of the statutory instrument reflecting the demanded changes within three months from the date of the order. News Page 35 Domestic workers sue govt over unjust law Public Service, Labour and Social Welfare minister July Moyo NewsHawks 1ssue 173, 19 - 26 April 2024
Page 36 News NewsHawks Issue 173, 19 - 26 April 2024 NATHAN GUMA VIMBAI Dzingirai (32), a crocodile farmer based in Harare, starts off her day by flushing out dirty water from the ponds, and refilling them. While the pools house a float of freshwater Nile crocodiles, she has become familiar with them and has learnt how to maintain their hygiene without agitating their temper. “Depending on their moods, they can be very territorial and aggressive if you enter their space and get too close on certain days,” Dzingirai told The NewsHawks. “But they also do know people based on scent and when there is a foreign scent from the one they are used to they can attack. There have been incidents when removing the water where certain crocodiles might not be in the mood to move yet you're trying to clean. If you poke them, they can growl or hiss or bellow as their way of being territorial and standing their ground.” Dzingirai has defied odds by becoming Zimbabwe’s first crocodile farmer, establishing her companies Vimbai's Crocodylidae Products, Tanning and Taxidermy and Vimbai's Organic Poultry and Crocodile Meat Supplies. This is happening at a time when women are still struggling to make inroads into the commercial farming business. She also co-owns a crocodile-siring partnership with her mentor, which is currently running in Masvingo. While very few farmers have been keen to enter into crocodile farming, Dzingirai has been a pioneer, aiming for the stars to create a new path for women while showing other women that they can do anything. Last year she was crowned Female Farmer of the Year, and Runner-Up in the Piggery category, adding to some of her numerous accolades. While the reptilians require attention, she has been juggling between them and education, having been selected for the Young African Leaders Initiative (YALI) Regional Leadership Centre programme, while in March this year, she was in the United States of America for the International Visitor Leadership Programme (IVLP) for Social Entrepreneurship. “Most women struggle and at times end up being exposed to sexual harassment and unpleasant scenarios just trying to secure employment. I also have a corporate social responsibility in my area and I mostly channel my energy and resources to disenfranchised groups,” she says. “In a world where most people are about profits, my employees are a priority first and I try to give them a reasonable salary. Not because I have, but because they are basically the ones who run the organisation in my absence and make sure profits are channeled back into the companies productively. Dzingirai is not new to the farming business as she serves as a director in two other companies, and has been specialising in piggery, organic poultry and cattle ranching (pen fattening). “My zeal is not only affiliated to for-profit ventures only, as there are many other social initiatives I partake, covering environmental conflict and conservation as well as gender equity. I was mentored by my business partner, a white farmer and was taught everything from scratch — first as an employee until we became business partners. “There are no entrepreneurship courses that cover crocodile farming and my only way of entering the space was through someone who was already in it.” Vimbai has been the protagonist in her story, overcoming hurdles within the tough and male-dominated crocodile farming industry. “The trade or community of people doing it is very small. The big players also want to a certain extent to monopolise the trade. So, information sharing is difficult if you are not in any association,” she says. “I know I tried for a whole five years to join a certain association. Only last year did I eventually get a direct link to a person in a position to assist. I have not joined yet because of the percentage needed to part with as a handling fee to them. “Such that I know the benefits that come with being their member but also considering calculations, I feel it might be a disadvantage to, especially when you are under a small and medium business enterprise. Maybe having favourable conditions in a black-owned association would be beneficial.” She also said her work has been hindered in some instances by the limited number of tanneries and processing plants to do value addition and make products in the country, which are crucial for making processed products. “Well, crocodile farming is not a popular trade amongst us black Zimbabweans, so being a female crocodile farmer itself is breaking the barriers. It is a predominantly white-dominated trade and also male-dominated trade, that the mere fact of my consistent existence and operation in it says a lot,” she says. “Truthfully, I cannot paint a rosy picture of balances because time and again I fail to. Most times people just see the end product and never the journey. So, when I look at some of my current failures or shortcomings, I cannot honestly say I have succeeded in finding balances to be where I am today. “I also believe my companies are unique in that I mostly accommodate female employees not because of the gender card but because I personally feel more opportunities are swayed in favour of men.” According to a 2017 United Nations Environment Programme, over 2 million crocodile skins are traded annually around the world, with Zimbabwe ranking as the world’s second-largest exporter of the reptile products after the United States of America. The increase in cheaper, high-quality leather worldwide has also raised the demand for superior products, increasing pressure on Zimbabwe’s producers to continue to improve their offerings. In 2023 alone, crocodile breeder Padenga Holdings Limited recorded a 52% spike in skin sales to 18 709 in the first half of the year, signaling rising demand for the reptilian hides. Dzingirai hopes to become a major breeder in the country and abroad, setting an example for other women. Zimbabwe’s only female croc farmer blazes a trail Vimbai Dzingirai in her crocodile pond, a partnership she co-owns with a white farmer in Masvingo.
NewsHawks Page 37 1ssue 173, 19 - 26 April 2024 Tobacco processor loses court case THE Constitutional Court has thrown out an application by Voedsel Enterprises (Private) Limited, a local company involved in tobacco contracting, processing and exporting, which was seeking to block attachment of its properties and evade payment of a debt to AFC Commercial Bank Limited (AFC). Following the decision, the company may lose its farm and two high-end houses which were mortgaged to secure the loan as the properties have been attached to settle the debt. AFC is a one-stop shop for development finance, commercial banking, insurance and leasing with a special focus on agriculture development. Voedsel Enterprises had mounted an application together with its sister company, Voedsel Tobacco, citing AFC, minister of Lands Anxious Masuka, Justice minister Ziyambi Ziyambi as respondents. The company had complained that its right to access the courts was violated after its properties were advertised for sale by the bank. But a Constitutional Court bench comprising Justices Anne Mary Gowora, Gladys Hlatshwayo and Barat Patel declined to hear the matter, stating they had no jurisdiction. “The applicants have not justified, on the papers before the court, why this court should assume jurisdiction in this matter as a court of first instance in the absence of a properly reasoned analysis of the facts and legal issues arising in the High Court. “The law has imbued the High Court with the appropriate jurisdiction to determine those constitutional matters that the applicants seek to place before the Court. “I am unable to find any justification for jumping that critical procedural step for the Court to assume jurisdiction. The Court must and will withhold its jurisdiction in casu,” said Justice Gowora leading the bench. According to court papers, on 2 December 2020, Voedsel Enterprises, cited as the first applicant, secured and was granted a line of credit amounting US$1.5 million by AFC. The loan was to fall due on 30 May 2022 and the facility was to incur interest at the rate of 9% per annum. On 1 April 2021, Voedsel Enterprises again secured a line of credit from AFC in the sum of US$ 2.1 million. It was also subject to interest at the rate of 9% per annum and was due to expire on 30 September 2022. On 4 May 2021, Voedsel secured another loan for ZW$300 000 000. It was to fall due on 3 November 2022 and was subject to interest at 50% per annum. On 7 August 2021, the company again secured another loan for ZW$220 000 which was to fall due on 16 August 2022 and was subject to interest at 37% per annum. The court heard the running theme in all the documents detailing the agreements between the parties was the requirement that each of the loans be secured by a note of hand and that the registered owner thereto executes a document as security and co-principal debtor; hence the involvement of Voedsel tobacco, the sister company. The applicants were unable to pay the debts when they fell due initially. They then tendered payment through Treasury Bills but this was rejected. It is common cause, however, that the debts denominated in US dollars have been settled. What is outstanding is the debt advanced in local currency. An offer to settle the debt through processed tobacco met with no success and that debt remained unsettled. The parties are wrangling over the exact amount, with the applicants claiming that the amount being claimed violates the in duplum rule (which literally means double the amount). The bank disputed the contention that the loan amount has now exceeded the limits required by the in duplum rule and asserts that the claim is legal. On 28 November 2022, the properties mortgaged to secure the loans were advertised for sale by public auction scheduled to take place on 9 December 2022 at the instance of AFC. The properties comprised a farm in Mhangura measuring 1209,9260 hectares, a residence in Harare's Glen Lorne suburb and a house on property share transfer in Borrowdale. The intended sale by public auction is what precipitated the two applications in the High Court, which applications were stillborn. There were no disputes of fact in the application before the High Court. Ziyambi and Masuka did not file any papers, choosing to abide by the decision of the court. On 8 December 2022, the High Court in Harare dismissed an urgent chamber application for an order of a stay of execution mounted by the applicants in response to an advert for the sale in execution of immovable properties at the instance of the first respondent. Consequently, Voedsel Enterprises and its sister company filed a Constitutional Court case in terms of rule 21 (2) of the Constitutional Court rules of 2016. They invoked section 167 (5) of the constitution and contended that it is in the interests of justice that they be granted leave for direct access to the court. If the application were to be granted, they intended to bring an application in the main challenging the validity and constitutionality of section 38 (2), (3), (4) and (5) together with the Second Schedule to the Act on the grounds that the impugned provisions are violation of their right to access the courts under s 69(2) and (3) and, in addition, their right to equal protection under section 56(1). Advocate Thembinkosi Magwaliba who represented the companies contended that under common law, parate executie against immovable property is illegal. Parate executie is a Roman-Dutch Law concept that grants a licensed commercial bank the power to sell a mortgaged property that had been secured to the bank as collateral. The exceptional feature of parate executie is that a bank may proceed with the sale without the involvement of a court of law. Magwaliba argued that the debt that the applicants now face is four times the original amount. He said his clients were however being denied the opportunity to challenge the extent of the debt. “The Bank in this case is the plaintiff, judge and executioner in its own cause,” he said, maintaining that there was merit in the application. One MDondo for the bank indicated that it was necessary to draw a distinction between the bank and other commercial banks operating within the country. He contended that the bank only lent to farmers with the objective of promoting and funding agricultural activity and, thus, it was excluded from the necessity for recourse to the courts as a means of recovering outstanding debts owed to it. The lawyer also argued that the applicants had not demonstrated that the impugned section and the second schedule were barbaric in any form or manner. The Constitutional Court said it is not ordinarily in the interests of justice for a court to sit as a court of first instance in circumstances like the present, where there would be no possibility of an appeal against that court’s determination. — STAFF WRITER. News
Page 38 News NewsHawks Issue 173, 19 - 26 April 2024 BRENNA MATENDERE STATUTORY pension fund, National Social Security Authority (Nssa)'s management is demanding cancellation of the US$10 million ICT social security system tender offered to local software company, Twenty Third Century Systems (TTCS) (Pvt) Ltd. Nssa chair Emmanuel Fundira has ordered management to revive the US$10 million ICT social security system with TTCS through a directive called 'chairman's action'. This involved imposing a resolution on the board as if there was an emergency. However Nssa senior managers said the TTCS tender is undesirable and corrupt. “As management we're opposed to this imposition of a board resolution through the 'chairman's action'," a senior Nssa executive said. “First, there is no emergency to warrant the 'chairman's action' directive. Second, other board members were just railroaded into the decision. It was an imposition." “Third, we paid TTCS in the first contract US$10 million for a system which did not work so we lost money. Fourth, reviving the deal means losing more money. Fifth and last, the problem is that the tender had irregularities. Now it's corrupt.” TTCS, which is based in Newlands, Harare, provides technology and software solutions. It was linked to Germany multinational SAP, a market leader in enterprise software application, and South Africa’s EOH Holdings, which are tech giants, until 2019. Now they are at war with each other. Strategically placed sources say Fundira is accused of brazen and corrupt abuse of office as he railroads the Nssa board, which includes Merjury Chinyemba, Tarusenga Chitemere, Shepherd Mundondo, Grace Mathe, Timothy Nherudzo, Chipo Ndudzo and Beatrice Ncube, into restoring a cancelled software system contract that prejudiced Nsaa US$10 445 582.00. This resulted in Nssa taking legal action against TTCS and a counter lawsuit. Fundira wants the court cases to be hastily withdrawn and a new contract issued without responsibility and care for pensioners’ funds already sunk into botched deal. The abortive Nssa-TTCS tender was widely described as a grand heist. Nssa paid over US$10 million for the dysfunctional system, but has nothing to show for it. Documents show Fundira has used his power — through what is called “chairman’s action” — to pressure the board into reviving a deal which has already been detrimental to the pension fund. Fundira wants the contract restored at all costs and has been forcefully demanding that it be done urgently, suggesting a vested personal interest. The issue has divided Nssa management and rattled government officials aware of the attempt to create further exposure for the US$1.2 billion pension fund through a contract which may fail again. What is alarming, according to the documents, is that Fundira also wants Nssa to stop its court action against TTCS, while paying it more money. Court papers show Nssa is arguing that the contract was invalid or alternatively there was a breach of the agreement signed on 31 October 2013, hence invalidity. It wants US$10 million payment in damages for breach of contract plus interest at a rate of 5% per annum with effect from 31 December 2017. For its part, TTCS is claiming US$7 369 326 against Nssa for maintenance fees and software licences. The matter is at pre-trial conference stage. Despite these two cases, which have been consolidated by the court due to similar cause of action by related parties, Fundira wants Nssa to revive the old deal and immediately pay TTCS about US$2 million extra to come back amid unresolved previous complaints of failure. A Ministry of Public Service official told The NewsHawks: “Basically, Fundira wants TTCS to be given a renew contract even if they failed to deliver. Nssa paid above US$10 million, but must now pay again, with US$2 million immediately released to the same company which bungled the project. This is a brazenly corrupt deal. “On 7 December 2023, the board met with TTCS representatives to discuss the SAP system that Nssa had acquired sometime in 2013 for a cost in excess of US$10 million. Nssa paid for the system in full. At the meeting, TTCS indicated they were ready to resuscitate the system at an estimated cost of US$1 880 000 and would require about 1 054 days to restore the system. The provision of annual maintenance would be 22% of the value of the software — which means about US$880 000.” Further, Fundira wants Nssa to drop its legal action against his close associate Henry Chikova, a former director for benefits, schemes planning and research at the pension fund. Nssa was suing Chikova, who now works at the public service, for deliberate misinformation, impropriety and gaslighting colleagues which led to the awarding of the tender to an undeserving supplier — TTCS which had lost to against another company, Integra, but later clawed back as it charged US$10.4 million as opposed to its competitor’s US$17.8 million. Fundira wants charges against Chikova dropped so that he makes him Nssa general manager — the management boss — to implement his new US$10 million deal. Nssa management has already been told to drop charges against Chikova in preparation for his return as the boss at the company where he left under a cloud of impropriety and corruption suspicions, costing the company millions. The pension fund is due to recruit a new general manager next month to replace Arthur Manase who resigned last year facing over 30 charges of corruption. Applications closed on 31 March. Charles Shava, Nssa director of occupational safety and health, is the acting general manager. He is one of the applicants for the substantive top job, together with Chikova and Nssa director of corporate affairs David Makwara, among a few others. Fundira is pushing for Chikova to become Nssa boss through a manipulated recruitment process. He has even tried to hire some human resources consultants to conduct sham interviews to legitimise his imposition of his own person to implement the US$10 million deal. After his appointment as Nssa chair in May last year, Fundira has been aggressively trying to revive the US$10 million contract, directing this must be done together with an immediate payment of US$1.9 million to TTCS, a company in the courts with the pension fund over non-performance and failure of the system. TTCS installed various systems in state enterprises amid controversy, forcing government to stop using its services, particularly Nssa chairperson Emmanuel Fundira Nssa executives oppose US$10m ICT contract 5 - 12 April 2024 Edition
NewsHawks News Page 39 1ssue 173, 19 - 26 April 2024 around 2019 when it was still in a partnership with listed South African technology solutions group, EOH Holdings, one of Africa’s largest technology services providers. EOH is facing a series of corporate governance failures and irregularities, including unsubstantiated payments, tender irregularities and other unethical business practices which are primarily limited to the public sector business centralised in EOH Mthombo and some EOH employees. A number of rogue and corrupt former EOH Holdings employees and directors almost destroyed an entire group through tender fraud with state organisations such as the SA National Defence Force and the Department of Water and Sanitation. TTCS is also entangled in controversy with its other former partner, Germany multinational software giant SAP amid allegations that it used code names and set up a shelf company in Botswana to circumvent European Union sanctions imposed on the Zimbabwean government from 2002. TTCS is claiming approximately R1 billion (US$54.2 million) from SAP for revenue losses resulting from the software giant terminating their agreements in 2019. The Harare-based TTCS wrote to the United States Stock Exchange in 2021, accusing SAP of being involved in a scheme to circumvent EU sanctions against it. “This was a clear effort on the part of SAP to avoid having to comply with the various sanctions and to continue doing business in Zimbabwe despite the sanctions,” Ernest Zvinavashe, managing executive at TTCS, was quoted as saying. “To date, TTCS Global does not have a single Botswana customer. Its sole purpose was to contract with SAP to supply SAP software solutions to Zimbabwean customers, through TTCS.” AP global public relations head Marcus Winkler told the Sunday Times of South Africa that the termination of its agreements with TTCS in 2019 was the result of an extensive investigation. “SAP is currently in litigation with TTCS over SAP’s decision to terminate them. We do not comment on pending litigation,” he said. The German-based software giant has also been in trouble in South Africa recently. In January 2024, court documents revealed how SAP allegedly bribed Eskom officials to retain business with it and other parastatals. The United States government brought the allegations against SAP. Fundira’s deal also reeks of corruption. Nssa itself is redolent with rot. “Nssa and TTCS entered into an agreement in 2013 for the supply and installation of an ICT system for the pension fund. However, due to some disagreements during the implementation process, Nssa terminated the contract in December 2017 over failure by the service provider to deliver and overpricing issues despite numerous pleas from TTCS for more time to implement the SAP system,” one document says. “After the appointment of Fundira in May last year, the board met on 7 December 2023 to discuss the issue. Fundira imposed the TTCS issue on the meeting, which was not on the agenda, and used what is he calls ‘chairman’s action’ to foist a resolution which says the deal must be revived with US$2 million paid immediately. TTCS and Nssa management then met on 11 January 2024 for further engagement. The Nssa board met again on 13 February 2024 and resolved that the pension fund should engage TTCS to resuscitate the SAP system. Pending litigation against TTCS and Chikova is now going to be withdrawn to facilitate the deal. The way Fundira is pushing for the revival of the contract and clearance of charges against Chikova whom he wants as general manager shows he has a vested interest in this. It’s abuse of office, cronyism and corruption writ large.” Background Essentially, there is a raging dispute between Nssa and TTCS dating back to 2017. In 2012, Nssa advertised a public tender for the supply and implementation of ICT social security system. As a result of the bidding process, Nssa and TTCS signed a supply and implementation contract on 31 October 2013. After that, Nssa paid TTCS a total of US$10 445 582.00. Disagreements, however, erupted over implementation. Subsequently, Nssa sued TTCS in HC 7384/20 seeking a declaratur that the contract entered into by the parties is unlawful and invalid and for restitution of the amount paid pursuant to the alleged illegal contract. Nssa is also suing Leadbake Enterprises, Blessmore Chanakira, Auxillia Danayi Munyeza and Chikova in a bid to sell properties in Borrowdale which were used as collateral. Liability on Chikova was based on negligent performance of duty. The alternative claim by Nssa is based on breach of contract, that is, in the event the court finds the contract to be valid. The defendants raised a special plea and exception to the summons. The special plea was struck off the roll High Court Justice Joseph Chilimbe on 26 October 2022. In respect to case HC 1148/22, TTCS sued Nssa based on a deal born out of the 31 October 2013 contract, that is the end-user licence agreement entered into by the parties on 20 December 2013. The two cases have been consolidated and are pending in the courts. Fundira has directed Nssa to withdraw the cases and concentrate on giving TTCS a new deal. The project, which was started way back in 2016, experienced a two-and-a-half year delay. The ICT SAP system specifically relating to the National Pension Scheme went live eight years ago with the remaining module relating to the Workers Compensation Fund projected to go live on 1 May 2016. The contract was cancelled in 2017 due to non-performance. The revived tender is bound to gobble more millions from Nssa, while pensioners’ continue to wallow in poverty.
Page 40 News NATHAN GUMA ALL eyes are on National Social Security Authority (Nssa) chairperson Emmanuel Fundira after it emerged that he wants to manipulate the ongoing new general manager recruitment process to impose Dr Henry Chikova as the next boss to revive a botched multi-million deal in which the pension fund lost US$10.4 million. Ministry of Public Service sources say Fundira is pulling out all the stops for Chikova to come back despite leaving the pension fund in controversial circumstances over the bungled US$10.4 million ICT social security system contract by local technology business solutions provider Twenty Third Century Systems. As a result, the Nssa chairperson is demanding that the pension fund withdraw charges against Chikova emanating from the failed costly deal. Simultaneously, Fundira is also trying to manipulate Nssa’s recruitment process for a new general manager to get Chikova appointed the next boss without following the required procedures, the sources say. The Nssa chairperson has even gone to the extent of hiring his own team of human resources experts to manage the recruitment process to ensure Chikova gets the job. Chikova left Nssa as director (benefits, schemes planning and research) and acting general manager under a cloud of controversy seven years ago — in January 2017 — having worked there for 22 years in social security administration, planning and research. He was blamed for lobbying for Twenty Third Century Systems to get the US$10.4 million ICT social security system and subsequently presiding over its failed implementation. As project director, he was responsible for the contract and its execution. After the shoddy job, Nssa sued Twenty Third Century Systems and four others, including Chikova, for their roles in the deal. Now Fundira is demanding that charges against Chikova be dropped. He has gone to the extent of pressuring the board and management to ensure that Chikova is cleared of the charges for him to be eligible to apply for the Nssa top job and revive the US$10.4 million. Chikova has already applied for the post. The application deadline was 31 March and a new boss will be appointed soon. Sources say Chikova has been assured he will get the job. A document obtained by The NewsHawks, dated 15 March, shows how Fundira has been pushing for Chikova’s return and has ordered that acting general manager Charles Shava “do everything necessary” to implement the “chairman’s action”. “The authority issued summons against Twenty Third Century Systems, Leadbake Enterprises, Blessmore Chanakira, Auxillia Danayi Munyeza and Dr Henry Chikova sometime in December 2020,” the document says. “The claim was arising from Nssa’s cancellation of an agreement of supply of an ICT system. The board took note that the authority in January 2017 executed a retrenchment agreement whose clause 10 stated that the parties agreed to release each other from all claims, liabilities and obligations of any nature and kind attributable to or otherwise arising from the conduct of an employee during the employer/ employee relationship. “In light of the agreement, the board decided that the authority withdraws its claim against Dr Chikova.” This shows Fundira is brazenly abusing office and power to drop charges against Chikova in a bid to hire him as the next Nssa boss to revive the US$10.4 million tender. Chikova served as Nssa acting general manager before Elizabeth Chitiga. Before the legal action, Mutumbwa Mugabe & Partners law firm wrote to Chikova asking him to show cause why Nssa should not institute a claim against him for the recovery of losses it had suffered due to the questionable US$10.4 contract and his equally questionable conduct. At the time, Chikova led a Nssa delegation to Europe and, upon return, recommended TTCS get the tender. “You were the head of the NSSA delegation which visited certain locations in Europe and upon your return, you reported that TTCS had fulfilled the said requirement. It has transpired that your report contained a falsehood in that TTCS had not been involved at all the sites visited by your delegation,” charged the lawyers. “The misrepresentation caused the authority to contract with a supplier which did not have the requisite qualifications and has resulted in Nssa suffering heavy loss.” The lawyers said the tender process violated section 7 (1) of the Procurement Regulations, Statutory Instrument 171 of 2002 as the contract was awarded without the authority of the then State Procurement Board or the chairperson of the agency. “Further, there was no satisfaction of the cumulative requirements of Section 7 (2) (a) – (f). At all material times, you as the director of benefits, schemes planning and research, were the head of the user department of the social security system… As project director, you were responsible for the contract and its implementation,” said the lawyers. Fundira is accused of brazen and corrupt abuse of office as he railroads the Nssa board, which includes Merjury Chinyemba, Tarusenga Chitemere, Shepherd Mundondo, Grace Mathe, Timothy Nherudzo, Chipo Ndudzo and Beatrice Ncube, into restoring a cancelled software system contract that cost Nsaa US$10 445 582. He wants TTCS to be given a renewed IT system contract even if the company failed to deliver. Nssa paid US$10.4 million for the system, but must now pay again to resuscitate it, with US$2 million immediately released to the same company which bungled the project in the first place. On 7 December 2023, its board met with TTCS representatives to discuss the SAP system revival. Nssa had acquired the system in 2013 for a cost in excess of US$10 million. Nssa paid for the system in full. At the meeting, TTCS indicated it was ready to resuscitate the system at an estimated cost of US$1 880 000 and would require about 1 054 days to restore the system. The provision of annual maintenance would be 22% of the value of the software — which means about US$880 000. Essentially, there is a raging dispute between Nssa and TTCS dating back to 2017. In 2012, Nssa advertised a public tender for the supply and implementation of ICT social security system. As a result of the bidding process, Nssa and TTCS signed a supply and implementation contract on 31 October 2013. After that, Nssa paid TTCS a total of US$10 445 582. Disagreements, however, erupted over implementation and the contract was cancelled. Subsequently, Nssa sued TTCS in Hich Court case 7384/20 seeking a declaratur that the contract entered into by the parties was unlawful and invalid, and for restitution. It is also suing Leadbake, Chanakira, Auxillia and Chikova in a bid to sell properties in Harare's Borrowdale suburb which were used as collateral. Liability on Chikova was based on his costly dereliction of duty. Fundira under scrutiny over new Nssa general manager recruitment Former Nssa director Benefits, Schemes Planning and Research Henry Chikova NewsHawks Issue 173, 19 - 26 April 2024
News Page 41 BRENNA MATENDERE A MOVE by National Social Security Authority (Nssa) chairperson Emmanuel Fundira (pictured) to start a fresh round of “eating” — looting — at the U$1.2 billion statutory pension fund by securing a new luxury car for himself while pensioners get peanuts has been thwarted by the Office of the President and Cabinet (OPC). Fundira, who is Nssa non-executive chair and thus not entitled to a car, had connived with former Public Service minister Paul Mavima to get a US$200 000 Land Rover Defender for personal use under the guise of having a car to tour the pension fund’s various projects around the country. “Fundira has now returned the car, a Land Rover Defender. It is parked at Nssa at the moment,” a Public Service ministry official said. “The chairman, who is non-executive, says he was given permission by Mavima to go ahead and get the car. A non-executive chairperson is not entitled to a condition of service vehicle. So this means this was an irregular or even corrupt deal. “After that, Fundira wanted chief secretary to cabinet Misheck Sibanda to regularise the deal, but he refused. However, OPC joined the fray and ordered him to return the car. He brought it back a few days ago. It’s now in the basement.” Mavima was close to Fundira, a hotelier, safari operator and group chief executive of privately-owned Astoc Leisure Group. When he was appointed Nssa chair in May, Fundira promised a clean-up at the corruption-ridden organisation, but he has done nothing much. Mavima has now been removed from the ministry and appointed a minister of State in OPC responsible for skills audit. He left Nssa under a cloud of corruption involving a US$400 000 Borrowdale house scandal. In 2015, Fundira was removed as Allied Timbers board chair amid a donation by the company to Zanu PF which never reached its intended beneficiary. Previously, he was chairperson of Allied Timbers, African Sun Limited, and the Zimbabwe Tourism Authority. He was president of the Safari Operators’ Association of Zimbabwe. He has also served as director at Safari Club International and African Wildlife Consultative Forum. The Fundira car fiasco came as Nssa has presented to the OPC its forensic audit which unearths corruption and names individuals implicated in the pension fund’s latest scandals, setting the stage for President Emmerson Mnangagwa to act. Mnangagwa has already acted by removing Mavima from the Public Service where he was in charge of Nssa, although he then put him directly under his wings. Nssa is a US$1.2 billion statutory pension fund. It has 109 properties across the country. The current Nssa forensic audit was conducted by AMG Global Chartered Accountants (Zimbabwe). It focuses on a wide scope of corruption issues, ranging from corporate governance, abuse of office and power, and self-aggrandisement at the expense of struggling poor pensioners. The critical issues include fraudulent property deals and acquisitions, abuse of office and duty, company vehicles, foreign trips and holiday allowances. Nssa board members last year reportedly flew to Kenya — paying themselves huge allowances — for a week-long training workshop that could have been held locally to save money, as pensioners continue to receive peanuts and wallow in untold poverty. NSSA chairperson ordered to surrender luxury vehicle NewsHawks 1ssue 173, 19 - 26 April 2024
Page 42 News AFTER the arrest of National Security Authority (Nssa) director of investments and properties Brian Murewa last week — more than a year on the run — by the Zimbabwe Anti-Corruption Commission (Zacc) on fraud and corruption charges, attention is now firmly on former Public Service minister Paul Mavima and ex-Nssa boss Arthur Manase. Mavima, now deployed to a new obscure portfolio called ministry of Skills Audit and Development after last year's general elections, and Manase were implicated in some dodgy deals at Nssa. Members of the public are closely watching if Zacc will arrest them after the arraignment of Murewa as they were also involved in the minister's US$400 000 corrupt house deal exposed by The NewsHawks. Government insiders say if Mavima and Manase are not held to account, then Zacc's integrity and credibility will take a further knock. Murewa, who has been on the run for over a year before his recent return from South Africa, was arrested during a raid at his Borrowdale home in Harare last week. As first reported by The NewsHawks in February last year, Murewa escaped to South Africa with Zacc in hot pursuit over a corruption case involving Mavima who illegally and corruptly bought a house in Quinnington, Borrowdale, Harare, for US$400 000 using Nssa pensioners' funds. The minister was removed from Public Service and deployed to the ministry of Skills Audit and Development after last year's general elections. Murewa was the agent of the deal executed under the watch of Manase who left last year in July under a dark cloud of corruption following a long period on suspension. Manase faced over 30 charges of corruption. A Nssa forensic audit into a series of corrupt deals at the fund has recommended that Zacc deal with Manase. On 26 February 2023, The NewsHawks first reported: "The National Social Security Authority (Nssa) investments and properties director Brian Murewa has fled Zimbabwe to South Africa to escape imminent arrest for helping Public Service minister Paul Mavima to corruptly buy a house in Quinnington, Borrowdale, Harare, for US$400 000." There were no due process and board approvals to buy the minister's Quinnington house, Stand No. 218 Lot A1, amid fraudulent financial engineering for private benefit by Murewa. Although the house was valued at US$350 000, US$400 000 was paid by Nssa in October 2022, creating room for an extra US$50 000 for rent-seeking to go into private pockets. Murewa was also involved in another corrupt deal in Kariba. On the Kariba real estate deal, original investigations by The NewsHawks (later confirmed by the Nssa forensic audit report seen by our reporters) showed Murewa misrepresented to the Nssa board the true cost of the 2 783-square metre Fishermans Rest Lodge which has six bedrooms, four bathrooms, main en suite, swimming pool and entertainment area, among other features. While seeking board approval, Murewa pegged the purchase price at US$240 000, fully aware that the public advert for the property was US$220 000. He purposely made an offer of US$240 000 despite it being valued US$220 000 by the seller, Pam Golding Properties. The agreement of sale and Pam Golding Properties records show the property was eventually purchased for US$215 000. This means the price was inflated by US$25 000. However, Murewa ensured that US$244 000 was paid for the property, ballooning the financial prejudice to Nssa to US$29 000. At some point, Murewa wanted to pay US$252 631.59. Apart from misrepresenting the price to the board, Murewa also inflated it to US$240 000. He then initiated the transfer of US$300 000 on 13 January 2022. His arrest brings Mavima and Manase into the spotlight. — STAFF WRITER. All eyes on minister after arrest of NSSA director Former Public Service minister Paul Mavima Former Nssa boss Arthur Manase NewsHawks Issue 173, 19 - 26 April 2024
News Page 43 BRENNA MATENDERE FIREBRAND opposition politician Job Sikhala on Wednesday tore into the South Africa's governing ANC led by President Cyril Ramaphosa over its role in sanitising sham elections in Zimbabwe in a ploy to help fellow liberation party Zanu PF to maintain a stranglehold on power. Sikhala made the remarks while speaking in a no-holds-barred interview with British Broadcasting Corporation (BBC) HardTalk host, Stephen Sackur. While the Southern African Development Community election observer mission led by former Zambian vice-president Nevers Mumba concluded that last year’s general elections in Zimbabwe did not meet the requirements of a free, fair and credible poll, Ramaphosa and the ANC stood firm in sanitising the plebiscite. Sikhala said this has always been the case with previous elections. “The ANC’s role has always been to undermine our people. Fikile Mbalula, the ANC secretary-general, has been releasing controversial statements against the opposition and people of Zimbabwe,” Sikhala said. “There is no doubt that it’s the ANC's policy to undermine the democratic forces of the people of Zimbabwe. We have noticed and identified the role the ANC and consecutive ANC governments in South Africa have played to undermine the mass democratic struggle in our country.” Sikhala also blamed the ANC for facilitating a power-sharing deal in 2008 that kept longtime ruler President Robert Mugabe in office despite being outpolled by opposition MDC icon Morgan Tsvangirai. “Don’t forget these are the same people who forced the global political agreement in our country when Zanu PF and the late Robert Mugabe were defeated in an election,” Sikhala said. Mugabe and Tsvangirai settled for a government of national unity in 2009 after negotiations led by then South African president and ANC leader Thabo Mbeki. Besides the ANC, other liberation party movements in Sadc have been steadfast in supporting Zanu PF. These include Angola's MPLA, Namibia's Swapo, Botswana's BDP, Tanzania's Chama Cha Mapinduzi and Mozambique’s Frelimo. Last month, the parties held a summit in Victoria Falls ahead of the 44th Sadc summit to be hosted in Harare in August this year. While the ANC has been consistent in siding with Zanu PF over rigged elections, last year indications of frosty relations between Zimbabwe and South Africa emerged after Dr Phophi Ramathuba, the head of health in Limpopo province, who was on a tour of Bela Bela Hospital in the region, came across a Zimbabwean woman admitted to the health centre. She blasted President Emmerson Mnangagwa for triggering an influx of migrants in her country due to bad governance. In 2010, WikiLeaks cables revealed that the United States had haboured a foreign policy to push for Mugabe’s ouster through persuasion of South Africa to implement the agenda, but the country’s leader at the time, Thabo Mbeki, helped Zanu PF to dribble past the plan through the stitching together of a Government of National Unity (GNU). During the land reform exercise that saw Zimbabwe being isolated by the international community, South Africa stood shoulder-to-shoulder with the Harare regime in what came to be known as “quiet diplomacy”. When Mnangagwa rose to power in 2017 through a military coup, his administration also had a stable relationship with South Africa. Mnangagwa was hosted in South Africa for weeks after fleeing Zimbabwe following his dismissal as vice-president by the late Mugabe. During his short stay in South Africa while he arranged the coup with army generals back home to topple the late Mugabe, Mnangagwa met high-ranking officials in the neighbouring country. ANC must not cleanse Zanu PF Opposition politician Job Sikhala NewsHawks 1ssue 173, 19 - 26 April 2024
Page 44 News Book title: Politics On the Edge—A Memoir From Within. Author: Rory Stewart. Publisher: Jonathan Cape. Reviewer: The NewsHawks. A NEW autobiography by Rory Stewart—who was Britain's minister for Africa and became the first foreign dignitary to be received by Emmerson Mnangagwa in the aftermath of the dramatic military coup which toppled Zimbabwe’s longtime ruler Robert Mugabe—is providing fresh insights into London's futile policy of appeasement which has failed to bear fruit in Harare. In his remarkable 464-page book, Politics On the Edge—A Memoir From Within, Stewart recounts the frenetic moments surrounding Mugabe’s ouster, at least through the eyes of the British. Stewart's account essentially confirms that, ahead of the November 2017 coup and the 2018 general elections, the then British ambassador to Zimbabwe, Catriona Laing, misled her government into believing that Mnangagwa was a pragmatist who would steer the country in a good direction. As correctly reported by The NewsHawks for years, Laing made it her mission to nurse the former British colony back to international respectability. But the gamble did not pay off because Mnangagwa and his Zanu PF are incapable of reform. Laing was the United Kingdom's ambassador to Zimbabwe from 2014 to 2018 and had a frontrow seat during the transition from the Mugabe administration to the Mnangagwa regime while naively backing Zanu PF and misleading London. For decades, Britain had failed dismally in its efforts to either influence or dislodge Mugabe. As far as Laing was concerned, Mugabe's ouster in November 2017 presented a glorious opportunity to reset London's fraught relationship with Harare. Despite the well-documented misgivings on Mnangagwa’s capacity to usher in a new era divorced from human rights violations, corruption and economic mismanagement, Laing — who would later become Britain's top diplomat in Nigeria from 2018 to 2023 — allowed her enthusiasm for Mnangagwa to cloud her judgment. In recent years, British lawmakers have accused her of failing to give objective reports on the real situation on the ground ahead of the coup and the 2018 elections. Biggest cheerleader Stewart sheds light into the behind-the-scenes discussions which shaped the British government's stance towards the 2017 coup. London was accused by some political analysts of playing the role of a leading cheerleader to Mnangagwa’s ascendancy. "When Mugabe was toppled in a coup d’état, I learned it in a tweet from the BBC in the early hours of the morning. No one from the Foreign Office had thought to inform me." He proceeds to recount Ambassador Laing's appraisal of Britain's Foreign Office via video link. She openly rooted for Mnangagwa’s, suggesting that the British government support him. To avoid alienating Mnangagwa — a politician she had cultivated ties with — she told her government to avoid describing Mugabe’s ouster as a coup. "She described the military trucks in the streets, and ran through what the evacuation plans would be. She said that it seemed the veteran Zimbabwean powerbroker Emmerson Mnangagwa would be taking over, and she implied we should endorse him, and above all not alienate him by describing what had happened as a coup d’état," narrates Stewart. He continues: "All this — although she was too polite quite to say it on the video conference — felt like a coup by her. The ambassador had made an immense effort to get to know Emmerson Mnangagwa. She had been criticised for doing so by White farmers, and human rights activists who associated him with land confiscations and torture. She had been criticised for it by the opposition who felt she was too close to the regime, and she had been criticised by me as well. But if, as seemed likely, Mnangagwa became president, she was the only ambassador who had really built a relationship with him." Stewart says he did not agree with the idea of supporting Mnangagwa unconditionally without extracting a raft of concessions from him, particularly on governance, human rights and democratic elections. But Laing was dismissive of the idea; she was convinced that the opposition, led by Morgan Tsvangirai, was now a spent force and a total waste of time. Laing's video link presentation to the Foreign Office on Zimbabwe’s coup quickly degenerated into a back-and-forth session with Stewart. He was not in concurrence with her unmitigated support for Mnangagwa. Stewart felt that this was an opportunity for the British government to spell out its expectations for the post-Mugabe era. "Even I knew that this was a bad moment to start a debate about Emmerson ‘the crocodile’ Mnangagwa. But then in the Foreign Office it never seemed to be the right moment to start a debate. So I asked what conditions we were setting Mnangagwa before supporting him. She paused. Everyone around the table stared at me as though they could not quite work out what I was suggesting. ‘For example,’ I said, ‘it seems important the opposition are given a fair shot at the elections'. 'The opposition cannot win the elections,’ interrupted the ambassador. ‘Even more reason why Mnangagwa should be willing to give them a fair shot.’ ‘Morgan Tsvangirai is finished — he cannot win the elections.’ For a moment, I was tempted to start an argument about that too — and try to make the case for the old man, whom I liked — but I let that go. Instead, I repeated that the very weakness of the opposition meant that Mnangagwa had no reason to avoid fair elections. ‘We should set clear requirements — a dozen requirements? Does that seem right?’ Someone nodded, and then looking at the other immobile faces, stopped nodding. ‘I don’t know how many. But conditions anyway.’ ‘What kind of conditions?’ asked the ambassador." Stewart adds: "The meeting seemed increasingly to consist simply of me and her. ‘First, letting expatriate Zimbabweans vote …’ ‘Mnangagwa will never allow that …’ ‘Second, clearing up the voter registration. Third, international observers. Look, could someone try to work up a list? And then in return we need carrots and sticks — the carrots I think are using our position at the IMF to authorise an emergency loan to stabilise the economy; we could bring investment, and we could increase development aid. Could someone reach out to our director at the IMF and see whether that is plausible? And perhaps to the US'." The permanent secretary in Britain's Foreign Office, Simon McDonald, did not consider Zimbabwe a foreign policy priority, Stewart says. Laing's stance prevailed, after she managed to convince London that Stewart's approach could undermine a glorious opportunity for Britain to reset its troubled relationship with Zimbabwe. "This encounter was reported back to Sir Simon McDonald, the permanent secretary in the Foreign Office. Zimbabwe was not something he spent much time thinking about. But insofar as he did, he did not think it was a priority — certainly not compared to getting the Treasury to invest more in our embassies in Asia and for that matter the Middle East. (He was an Arabist.) He told his friends, who then told me, that I was an idealist, and that he didn’t like junior ministers trying to create policy. The ambassador followed up with her own messages to London, formal and informal, arguing that I was undermining the opportunity to reset a more positive relationship between Britain and Zimbabwe through Mnangagwa." Can a "crocodile" reform? Stewart was not done, though. He figured out that the best way of tackling the Zimbabwe issue was for him to travel to Harare and see for himself the situation on the ground. This explains how he became the first foreign minister to be received by Mnangagwa in the post-coup period. Britain's minister for Africa was so sceptical of Mnangagwa’s so-called transformative potential that he even placed a bet against the envisaged rebirth of the man nicknamed "the crocodile". Mnangagwa would not hold democratic elections, he argued, much to the chagrin of Ambassador Laing who continued asking the British establishment to give the Zimbabwean strongman a chance. "My first night in Harare began with a dinner. The ambassador had invited a group of Zimbabwean civil society activists who were so positive about Mnangagwa that I ended up, in a coarse breach of diplomatic protocol, betting a pastor $50 that Mnangagwa would not hold fair elections. After dinner, the ambassador said I risked wrecking the relationship she had built with Mnangagwa. She did not like my emphasising, even in private, that he had been imprisoned for murder as a child, or that he had run Mugabe’s secret service. She did not think there was much point in pushing him to reform. I replied that I felt she was prizing our access, more than our influence. She looked, however, at my first draft of election conditions, and accompanied me to present them to the US and EU ambassadors in Harare and then to my meeting with the new president." Stewart says that in his meeting with President Mnangagwa, he spoke about the importance of credible elections, including allowing foreign-based Zimbabweans to vote in the 2018 general elections. Mnangagwa simply smiled. It was a telling reaction; Zimbabwe would not only proceed to hold yet another discredited election but also continue resisting calls for the diaspora vote. "I was the first foreign minister from any country to meet Mnangagwa after his inauguration. This great hope of new civilian government strode in surrounded by generals in uniform...I tried to be as clear and specific as I could about improvements to the elections — including allowing expatriate Zimbabweans to vote. And he — thirty years older than me, and a veteran of forty years of liberation politics — simply smiled." It was not long before Mnangagwa spectacularly squandered the immense international goodwill and soon returned to his default settings. On 1 August 2018, he deployed soldiers who murdered unarmed civilians on the streets of Harare. The mask had fallen. Looking back, Stewart laments the failure of "the British system" to make a difference in Zimbabwe. "A few weeks later, I was reshuffled out of the Foreign Office, and Mnangagwa was able to secure international financial support without implementing any fundamental economic or democratic reforms. He ran an election on his own terms and won. Zimbabwe collapsed back into inflation, instability and oneparty brutality. Our ambassador was promoted. It was difficult to know whether my attempts to push for improvements in the elections had simply been, as Simon McDonald continued to say, ‘idealistic and naïve’. Or whether the problem was that the British system hadn’t wanted to try." Elections in Zimbabwe — viewed from the twin perspectives of a constitutional imperative and an instrument of foreign policy — have been a massive flop. Mnangagwa's international diplomatic re-engagement project is in tatters. Economic crisis and the subversion of the will of the masses are continuing unabated. Seven years later, Ambassador Catriona Laing has still not admitted that she was dead wrong on Mnangagwa's willingness to reform. But she does not have to; Rory Stewart has already exposed her monumental miscalculation in his remarkable book. Epic naivety of British policy on Zim NewsHawks Issue 173, 19 - 26 April 2024 Rory Stewart
News Page 45 Dear Esteemed Zimbabwe Anti-Corruption Commission chair, commissioners and secretariat. Greetings. We hope we find you well today on Independence Day, 18 April 2024. We have a good lead for you to start a meaningful investigation into a new case of corruption at the statutory pension fund, National Social Security Authority (Nssa). As the Zimbabwe Anti-Corruption Commission (Zacc), you were established in terms of section 254 of the Constitution of Zimbabwe Amendment Act (No. 20) Act, 2013, as a constitutional and independent state institution. Your key mandate is to combat corruption, misappropriation, theft, and abuse of power and improper conduct in the public and private sectors. In addition to your functions under the constitution and the Anti-Corruption Commission Act, the commission has the following mandate — (a) to monitor and examine practices, systems and procurement procedures of public and private institutions; and (b) to enlist and foster public support in combating corruption in society; and (c) to educate the public on the dangers of corruption in society; and (d) to instruct, advise and assist any officer, agency or institution in elimination or minimisation of corruption; and (e) to receive and investigate any complaints alleging any form of corruption; and (f ) to investigate any conduct of any person whom the commission has reason to believe is connected with activities involving corruption; and (g) to assist in the formulation of practices, systems and procurement procedures of public and private institutions with a view to the elimination of corrupt practices; and (h) to advise on ways of strengthening anti-corruption legislation; and (i) to recommend to the government that it ratify and domesticate relevant international legal instruments aimed at combating corruption. Against this backdrop, The NewsHawks — a local investigative reporting media organisation — is deeply interested in investigating corruption in its various manifestations in the public and private sectors, as well as dark corners — nooks and crannies — of society. As such, we have done many investigative stories exposing corruption in different places. We do this almost week in, week out. It's our forte. Only this past week, we exposed in detail a plot by Nssa chairperson Emmanuel Fundira to revive a botched US$10 million ICT social security system involving local software company Twenty Third Century Systems (TTCS). The NewsHawks has seen the documents on this, showing the corruption scandal underway. The story is based on facts and copper-bottomed evidence. TTCS, which is based in Newlands in Harare, provides technology and software solutions. It was linked to Germany multinational SAP, a market leader in enterprise software application, and South Africa’s EOH Holdings, a tech giant, until 2019. Now they are at war with each other. Our sources accuse Fundira of brazen and corrupt abuse of office and power as he railroads the Nssa board, which includes Merjury Chinyemba, Tarusenga Chitemere, Shepherd Mundondo, Grace Mathe, Timothy Nherudzo, Chipo Ndudzo and Beatrice Ncube, into restoring a cancelled software system contract that cost Nssa US$10 445 582. This resulted in Nssa taking legal action against TTCS and a counter lawsuit. Nssa also took court action against its former acting general manager Dr Henry Chikova who was accused of aiding and abetting the costly fiasco. Now Fundira wants the court cases hastily withdrawn and a new contract issued without responsibility and care for pensioners’ funds already sunk into the botched deal widely described as a grand heist. Nssa paid over US$10 million for the dysfunctional system, but has nothing to show for it. Documents show Fundira has used his power — through what is described as “chairman’s action” — to pressure the board into reviving a deal in which the pension fund has already lost more than US$10 million. He wants the contract restored at all costs and has been forcefully demanding that it be done urgently, suggesting a vested personal interest. Our sources say he has a personal pecuniary interest. The issue has divided Nssa management and rattled government officials aware of the dodgy attempt to create further exposure for the US$1.2 billion pension fund through a costly contract which may fail again, doubling the loss. What is alarming, according to the documents, is that Fundira also wants Nssa to stop its court action against TTCS, while paying it more money, starting with a further US$2 million advance. And this has to be done urgently. For him, it is like an emergency, hence the "chairman's action". To implement this, Fundira wants his close associate Chikova, a former director for benefits, schemes planning and research, back at the pension fund to spearhead the deal. Nssa was suing Chikova, who now works at the public service commission, for deliberate misinformation, impropriety and gaslighting colleagues which led to the awarding of the tender to an undeserving supplier — TTCS which had lost to against another company, Integra, but later clawed back as it charged US$10.4 million as opposed to its competitor’s US$17.8 million. Fundira wants charges against Chikova dropped so that he makes him the new Nssa general manager — the management boss — to implement the deal. Nssa management has already been told to drop charges against Chikova without questions in preparation for his arranged return as the boss at the company where he left under a cloud of impropriety and corruption suspicions, costing the company millions. Charges have to be dropped for him to attend interviews and be hired without hurdles as the process will be rigged in his favour — another corrupt deal inside a corrupt process. He has already applied for the job under Fundira's tutelage. Nssa is currently in the process of recruiting a new substantive general manager, hence the application. Dr Charles Shava, Nssa director of occupational safety and health, is the acting general manager. He is one of the applicants for the top job, together with Chikova and Nssa director of corporate affairs David Makwara, among a few others. But Fundira is single-mindedly pushing for Chikova to become Nssa boss via a predetermined and manipulated recruitment process to revive the US$10 million contract in which he was accused of impropriety in the first place. Fundira has even tried to hire some preferred human resources consultants to conduct sham interviews to legitimise Chikova's imposition to restore the lucrative tender. The NewsHawks has already done most of the work for you as Zacc. All you need to do now is to gather evidence — which is there — and act in terms of the law to stop pensioners' funds being stolen again. There is a serious job for you, ladies and gentlemen. Show what stuff you are made of. We await action from your side in the public interest and to show you are indeed working, credible and effective. Corruption is a grave national issue as it badly undermines economic growth, erodes public confidence, trust and hampers progress. Fighting corruption is thus clearly in the national interest, especially given its devastating economic and social impact, as well as consequences. Zimbabwe is currently what it is — in the economic doldrums — partly due to endemic corruption, venality and depredations of corrupt scoundrels. At least the good thing is that you are already seized with Nssa corruption issues as shown by the recent arrest of Brian Murewa, a former investments and properties director — over another different case involving ex-Public Service minister Paul Mavima's US$400 000 Borrowdale house scandal. This was also exposed by The NewsHawks. Surely, Mavima must also be held to account over this. If Murewa is guilty of carrying out an illegal and corrupt instruction, the principal is certainly neck-deep into the corruption and equally guilty. We wish you good luck in your current and future investigations. Yours sincerely, The NewsHawks. Zacc must probe Nssa deal NewsHawks 1ssue 173, 19 - 26 April 2024 Nssa chairperson Emmanuel Fundira
Page 46 News NATHAN GUMA HUMAN rights abuses are persisting in the diamond-rich Manicaland province, with a new report showing that residents of Marange’s Chiadzwa village are crying foul over beatings, arbitrary arrests and heavy bribes, The NewsHawks has learnt. The government declared the diamond fields protected areas under the Protected Places and Areas Act (PPAA) to cpntrol the mineral. The law, first promulgated in 1979, came into effect in the Marange area in 2007 to stem the plunder of diamonds. The PPAA empowers the government to control the movement of people in protected areas, usually demanding them to produce identification when moving into and out of the area, among other security checks. Since then, there has been continual outcry over arrests and serious bribery, according to a report titled: General Notice 181 of 2007 on Marange on Protected Places and Areas Act Under Spotlight by a governance watchdog, the Centre for Research and Development (CRD). “Every morning you wake up to police from nearby base and Bambazonke demanding bribes for operating without licences,” said a vendor who was filmed by CRD, in the report. “Sometimes they may come as early as 6am and accuse us of opening too early, then ask for money. Yet, we are asking council to help us with licences so that we can prove that we are working. They write receipts for us, but after a week, it would have expired! Police demanded an US$80 penalty for not having a licence at one time. That money is beyond the reach for my business. “They said this receipt was only valid for a month, and yet it takes me more than eight months to reach that target, because there are several shops and no money. Sometimes we are accused of harbouring artisanal miners. How can I do that when I am working in my shop? … Young girls are abused by soldiers and artisanal miners. Others drop out of school because of long distances they have to cover going to school.” Other residents are now taking action against the rampant rights abuses. For instance, on 29 November 2023, Jay Kasakara filed a High Court application seeking a declaration that enforcement of a restriction order on Marange under general notice of 181 of 2007 is unlawful. The general notice has seen people being compelled to carry national identity cards, letters from village heads while passing through several checkpoints, limiting freedom of movement. Kasakara has faced harassment on four occasions for resisting payment of bribes to state security officers to secure his freedom. In one of the incidents, a soldier from Chingome base manhandled him and took US$30 from his pocket. He only recovered his money from the soldier after the intervention of a police assistant commissioner based at Mbada diamond base, according to the report. However, the state, represented by minister of Home Affairs and Cultural Heritage as first respondent, Commissioner-General of police (ZRP) as second respondent and Officer Commanding Manicaland province as third respondent have argued that enforcement agencies were lawfully discharging their mandate. CRD says the abuses date back to 2006 after the expiry of De Beers diamond company's exploration rights in Marange. Geological findings in the Marange diamond fields indicate that huge alluvial deposits were found within gravels of up to 15 metres from surface in an area covering 66 000 hectares of the communal lands. “Greed saw government setting in motion a predatory and Machiavellian scheme to capture and plunder Marange diamonds fields beginning of 2006. The scheme initially involved opening floodgates for people from all walks of life to engage in free digging and trade of diamonds on the black market in order to generate euphoria,” reads the report by CRD. CRD says the euphoria enabled the government to justify the expulsion of African Consolidated Resources (ACR) from the Marange diamonds fields and confiscation of their diamond parcels and machinery in 2007. The euphoria of the “diamond rush” was also weaponised to calm public discontent to catastrophic policies by government that had triggered an economic meltdown at the time. “In order to contain the influx of people into the diamond fields, government declared the diamond fields a protected area in April 2007 under Protected Places and Areas Act Chapter 11.12,” it reads. “After retaining Zanu PF in power through a bloody run-off in 2008, the Joint Operations Command (Joc) of state security forces deployed in Marange and captured the diamond fields from over 30 thousand artisanal miners in yet another brutal military exercise on civilians dubbed 'Operation Hakudzokwi' that saw civilians being tortured, raped and murdered. “The militarisation of Marange diamond fields saw the emergence of opaque diamond companies linked to political elites and securocrates that plundered alluvial diamonds and relegated Marange community into abject poverty, despair and disenfranchisement.” Marange villagers cry foul over security forces NewsHawks Issue 173, 19 - 26 April 2024
News Page 47 Police executions unsettle rights lawyers BRENNA MATENDERE THE Zimbabwe Human Rights NGO Forum has flagged the shoot-to-kill policy of the Zimbabwe Republic Police (ZRP) on armed robbers, after it emerged that some incidents involving the killing of suspects now resemble extrajudicial executions. Ahead of Christmas last year, police detectives from the Harare Criminal Investigations Department homicide section shot and killed robbery suspect Godkows Machingura in Harare, aged 44 at the time. According to a police report, the CID detectives trailed Machingura and his five friends who included Paul Zhou and Jabulani Ngobeni, after they were tipped off on their plot to commit several robberies including hits on some prominent individuals for ransom. The police report said Machingura succumbed to a gunshot wound in the groin after a shootiut in Harare's Arcadia suburb. However, his family has since disputed the police account of the matter, insisting Machingura was a victim of police execution. This was after five bullet wounds were observed on is body during the post-mortem. The family said he had two shots in the head, one gunshot below the ribs, and two gunshots on his legs. This week, The NewsHawks obtained the original copy of the autopsy results compiled by a Harare pathologist which confirms the family’s account. It says his cause of death was not natural. The pathologist outlines three reasons for Machingura’s death which point to police execution. The autopsy report says he had lung wounds, gunshot wounds and suffered hemorrhagic shock. Hemorrhagic shock is caused by heavy blood loss, caused by internal or external bleeding. Before Machingura’s case, there have also been several incidents where police claim an armed robber was shot dead while fleeing during indications. Indications are incidents when police, after arrest, take a suspect to the crime scene to understand and gather evidence of the criminal activity. The suspects would ordinarily be under police custody. In an interview with The NewsHawks this week, Wilbert Mandinde, the acting director of the Zimbabwe Human Rights NGO Forum, said his organisation is concerned with what seems to be the extrajudicial execution of suspected robbers. He said police must always endeavour to arrest suspects and take them to court in line with the due process of law. “As the Zimbabwe Human rights NGO Forum we are concerned about the police shoot-to-kill policy. We want to start by applauding the good way the police would do, in apprehending criminals, certainly that’s something which has to be commendable. “And we also are clear that police should also work to protect themselves. That is a use of defence as and when they are under attack. We certainly have no problem with police doing that. “We are however concerned about the high rate of these shootings that are currently happening at the moment. And there is every scope for us to believe that police are simply executing all suspected armed robbers. We believe that is wrong,” he said. Mandinde said at law police do not have the mandate to execute suspects. “Police do not have the mandate to do that. Police should arrest and take people to court where they could be tried, convicted and sentenced. We are worried about this particular thing that we tend to hear that people either attempt to escape or grab guns and fight over guns with police. “And we always wonder whether when they take these armed robbers out for incident, they do not use leg irons, for example, or handcuff them at the back,” he said. Mandinde said the handling of robbery suspects after they are arrested can be equated to the treatment political prisoners are subjected to. “As we have seen with other cases, including cases of political prisoners, we would see Jacob Ngarivhume coming to court in leg irons. We would see Job Sikhala coming to court in leg irons. But we are wondering whether the leg irons are only for political prisoners and not meant also to be used on armed robbers?” he asked. “So this issue is concerning. Another issue of concern for us pertains to the fact that we no longer have an Inquests Act which was replaced by the Coroner's Act. But we are aware that in terms of the law the Coroner's Act has not yet been given a date upon which it will come into operation. “That has left us with a gap in terms of the law. We are also concerned about the delays in coming up and finalising the selection of the commissioners for the Zimbabwe Independent Complaints Commission.” Mandinde, a former magistrate, said an independent complaints commission to look into the conduct of police regarding upholding of human rights is key. “We believe that there must be a Zimbabwe Independent Complaints Commission is properly instituted and properly independent. It will be in a position to then carry out proper inquiries into these complaints that we now have against the police because we do not believe that the police have the capacity to investigate themselves in this particular matter,” he said. RENOWNED South African economist Dawie Roodt said that despite having many big problems, South Africa will not follow in Zimbabwe’s footsteps. Roodt told Nuuspod podcast that South Africa’s problems include dismal state finances, collapsing local authorities, and poor stateowned institutions. However, it will not become another Zimbabwe. “If South Africa fails as a country, it will fail as South Africa. We will not become like Zimbabwe,” he said. Roodt explained that there are many reasons why South Africa will not become another Zimbabwe. First, South Africa is a large country with a diverse society. “South Africa has numerous ethnic, religious, and interest groups,” he said. Another reason is the country’s highly diversified economy. Zimbabwe, in comparison, relies primarily on agriculture and mining. “South Africa has a large, diversified, and sophisticated economy. It has liquid financial markets which are well managed,” he said. So, while South Africa has been mismanaged by the ruling party, which caused tremendous damage, it is not the same as Zimbabwe. However, it does not mean South Africa will not face tremendous problems if it does not change its ways. Roodt explained that the two countries are similar in that a liberation movement took over the government. In both cases, the ruling party mismanaged their country. However, unlike the ruling Zanu PF in Zimbabwe, the ANC’s grip on South Africa is not as strong. “We have an active civil society, an independent press, and a good judiciary that works,” Roodt said. He added that even the ANC, for the most part, abide by rulings from the courts. This is good news for the country. “This does not mean things can’t go horribly wrong. We have serious economic problems. However, we can solve these problems,” Roodt said. He highlighted that South Africa had previously overcome tremendous challenges during the transition from apartheid to a democracy. “Let us trust democracy. Let’s work together and see if we can, once again, facilitate a peaceful political transition." — Daily Investor. South Africa President Cyril Ramaphosa (left) with Zimbabwean counterpart Emmerson Mnangagwa. South Africa won't become Zim — but it has serious problems NewsHawks 1ssue 173, 19 - 26 April 2024
Page 48 NewsHawks Issue 173, 19 - 26 April 2024 PROMINENT Kenyan investigative journalist John-Allan Namu conducted a refresher course for mid-career Zimbabwean journalists, including a few veterans, at a seminar at Harare Polytechnic recently. Namu took the journalists through the basics of investigative journalism, from hypothesis, justification, planning, source mapping, timelines, funding and writing, as well as packaging and distribution. He also engaged local journalists on the utility and pitfalls of social media. Social media platforms are essential for open source investigations due to their widespread use and real-time nature. They allow for the collection and analysis of large volumes of user-generated data invaluable in investigative journalism. By using social media platforms such as X (Twitter), Facebook, and Instagram, journalists can gather valuable information on a particular subject or event under investigation. Yet journalists have to navigate through a minefield of rumours, unreliable information and lies to thoroughly verify authenticity of sources, newsmakers and details. This is increasingly becoming a huge problem, particularly with the advent or growing use of artificial intelligence tools, and deepfakes. Deepfake artificial intelligence technology is used to create convincing digital image, audio and video hoaxes. To overcome these challenges, journalists should employ robust investigative techniques and verification processes. After all, journalism is a discipline of verification. By cross-checking information from multiple sources, fact-checking, and using reliable tools, reporters can mitigate risks associated with information overload and misinformation, as well as disinformation. Namu covered these issues in detail during his presentation. The Kenyan is a multiple award-winning investigative journalist, trainer and moderator. He is CEO of Africa Uncensored, an investigative and in-depth journalism production house based in Nairobi, Kenya. Africa Uncensored’s ambition is to be the premier source of unique, important and incisive journalism. Prior to co-founding Africa Uncensored, he was the special projects editor at the Kenya Television Network, heading a team of the country’s best television investigative journalists. Funded by Swedish media institute, Fojo, whose mandate is to professionalise journalism through institutional and individual capacity building, the three-day training workshop, is facilitated by Namu, assisted by The NewsHawks managing editor Dumisani Muleya, a local award-winning investigative journalist, veteran journalist Tawanda Majoni, founder of Information for Development Trust, as well as Harare Polytechnic lecturers, including Terrence Antonio and Admire Masuku. It is attended by seasoned, mid-career as well as up-and-coming journalists from across different media houses and cities in the country. — STAFF WRITER. Kenyan writer conducts refresher course for Zimbabwean journalists News
News Page 49 Legal Insights THE judiciary plays a crucial role in ensuring justice and the upholding of the rule of law in Zimbabwe. For the judiciary to effectively discharge its duties, it must be above corruption and maintain its independence and impartiality. Here are some reasons why: 1. *Fairness and impartiality*: A corrupt judiciary compromises the principle of fairness and impartiality, leading to unjust outcomes and erosion of public trust. 2. *Protection of human rights*: The judiciary must safeguard human rights and ensure that citizens receive a fair hearing, free from corruption and bias. 3. *Accountability and transparency*: A corruption-free judiciary promotes accountability and transparency, essential for good governance and the rule of law. 4. *Public trust and confidence*: A judiciary above corruption earns public trust and confidence, essential for the effective administration of justice. 5. *Independence and autonomy*: A corrupt judiciary compromises its independence and autonomy, undermining its ability to make impartial decisions. 6. *Justice for all*: A corruption-free judiciary ensures that justice is accessible to all, without fear or favour. 7. *Economic growth and development*: A trustworthy judiciary attracts investment, promotes economic growth, and enhances Zimbabwe's global reputation. 8. *Deterrent to corruption*: A judiciary that punishes corruption sets an example and deters others from engaging in corrupt practices. To achieve a corruption-free judiciary in Zimbabwe, measures such as: 1. *Strengthening judicial independence* 2. *Enhancing judicial accountability* 3. *Implementing robust anti-corruption measures* 4. *Promoting transparency and openness* 5. *Supporting judicial education and training* 6. *Encouraging public engagement and oversight* can help ensure that the judiciary remains a beacon of integrity and justice in Zimbabwe. Corruption-free judiciary key NewsHawks 1ssue 173, 19 - 26 April 2024
Page 50 International Investigative Stories NewsHawks Issue 173, 19 - 26 April 2024 ROAMING in his natural habitat, Gilgil crossed from Kenya into Tanzania, and paid for it with his life. The 35-year-old super-tusker, who was just entering his reproductive years, belonged to a unique population of elephants who traverse from Kenya’s Amboseli National Park to northern Tanzania. Super-tusker elephants — who have at least one tusk weighing over 50 kilograms —were decimated in the past by poachers. Less than 100 now remain. “The unnatural death of any elephant is very troublesome,” said Cynthia Moss, program director at Amboseli Trust for Elephants, who has been studying this population for 51 years. "What we are trying to do as scientists is to study as natural a population as possible. So to kill an elephant just because it has big tusks goes against everything we have strived for." Kenya banned hunting in 1977 but it remains legal in Tanzania — where hunting companies can obtain licenses on behalf of a client. A permit to shoot an elephant costs between US$10,000 to $20,000. However, for the last three decades, the Kenyan-Tanzanian border had been relatively safe for elephants –– until Gilgil was shot and his carcass was burnt. Then in November, another elephant was killed in Tanzania, followed by one more last month. That seems to have marked the end of a de-facto hunting ban, which came in 1995 after pressure from Moss and other conservationists. This had followed the hunting down of four elephants in the frontier region. According to a report International InvestigativeStories Rare elephants’ survival roulette on Kenya-Tanzania border