Zimbabwe Cricket owes Metbank $15 million

Newsday

By Wellington Toni, Sports Editor

6th January 2014

 

ZIMBABWE Cricket (ZC)’s financial quagmire, that saw the cancellation of the Sri Lanka tour and disruption of the domestic league, has been revealed as a $15 million loan from MetBank that is yet to be honoured.

While January 18 has been set for the resumption of the domestic league, is now highly unlikely as ZC may not secure sponsorship, which will further scuttle Zimbabwe’s preparations for the World Cup T20 competition.

Last month, ZC said it was unable to provide guarantees on when they will pay the striking players and the latest report from the central bank reveals the depth to which cricket, once an envy of many, has sunk in recent years.

An official Reserve Bank of Zimbabwe document in possession of NewsDay reveals that ZC owes MetBank $15 million.

“Medium-term strategies previously advised, including debt restructuring and loan syndications on large exposures such as the Zimbabwe Cricket ($15 million), Zinara corporate finance deal and a Nampower $50 million transaction are yet to be consummated,” read part of the document.

The report adds: “The gaps are mainly a manifestation of non-performing loans amounting to $29,43 million as at 30 September 2013.”

In August last year, Zimbabwe cricketers had formed a union to participate in salary negotiations prior to the series against Pakistan.

ESPNcricinfo understands ZC has asked the International Cricket Council for an additional loan of $3 million, but it is said the international body may only agree to that if ZC provided an audit of the funds they received from the Targeted Assistance and Performance Programme earlier last year.

Former ZC managing director Ozias Bvute is a non-executive director at Metbank while ZC vice chairman Wilson Manase is Metbank chairman.

ZC chairman Peter Chingoka is also Metbank non-executive director according to the company website. Chingoka has been at the helm since Zimbabwe gained Test status in 1992 and is deputised by Manase after the last board elections conducted in 2011.

Bvute is also chairman of the Air Zimbabwe board.

The board will also receive funding from the World Twenty20. A tri-series involving Australia and South Africa is also being mooted which could be a major source of revenue for ZC this year in addition to about $25 million for the 2015 World Cup.

Former Sports minister David Coltart told Cricinfo last August: “The association now is very much in the red. We estimate anything between $15-18 million in the red. That situation has been compounded by the fact that there have been very few international tours, very few profitable tours, which undermines the ability of Zimbabwe Cricket to address that massive debt. And that, in turn, has meant that players have not been paid on time.

“I had a meeting with (ICC CEO) Dave Richardson in Dubai in March and he told me that Zimbabwe Cricket, over the next couple of years, can expect revenues of up to $25 million. Zimbabwe cricket does not have the infrastructure that, for example, we see in New Zealand and $25 million, properly administered, should be enough to grow the game and pay players.”

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Hero’s widow battles for life

Southern Eye

By Nduduzo Tshuma

13th December 2013

THE wife of national hero Edward Ndlovu, Mary, is battling for her life in a South African hospital after being injured in an accident involving the Bulawayo-bound Pathfinder luxury coach and a haulage truck last Saturday.

Four people died on the spot when the bus hit a cow and the driver lost control resulting in a head-on collision with the truck. Four others later died in hospital.

Mary was thrown off from the upper deck of the bus on impact.

Judith Todd (a friend of Mary) and former Education minister David Coltart confirmed in their correspondence privy to Southern Eye that Mary was critically injured in the Pathfinder bus accident.

Todd said Mary (71) had undergone extensive surgery in Johannesburg and was admitted at the Milpark Hospital’s intensive care unit trauma section and would be there until today.

“God willing, the worst should be over and she should be safe. She is having a hip replacement and work was to be done on her back and neck,” Todd said.

“I got a message from Peta (Thornycroft) this morning saying Mary was using her cellphone, but by the time I tried (calling her), I couldn’t get through. I don’t have details of her injuries, but one of her friends says she has a cracked hip,” said Todd.

Responding to Todd, Coltart said the last time he saw Mary was on Sunday and she was heavily sedated.

“I think she is very fortunate to be alive. I don’t know whether you know, but she was sitting in the second row of seats on the upper deck and was thrown out of the bus. I have just seen a photo of the bus and I am amazed that anyone in the front four rows survived,” said Coltart, who travelled yesterday to attend his son Doug’s graduation in South Africa.

Ndlovu was engaged in a life-long struggle for independence and was the MP for Gwanda at the time of his death in 1989.

A library named after Edward Ndlovu was opened in Gwanda in 1992 and is still operational. According to the Edward Ndlovu Memorial Trust website, the library has a staff complement of 13 people.

It provides a service in Gwanda town and in 27 rural communities in the district surrounding the town.

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ZANU-PF Amends Poll Law

Financial Gazette

12th December 2013

 

LESS than six months after its victory in the July 31 polls, the ZANU-PF government has come up with an amendment to the Electoral Act.With ZANU-PF firmly in control after garnering over two thirds majority in the last poll, the ruling party is now unrestrained in making laws to suit its own devices.

For the first time since 2007, ZANU-PF is revising the law that governs the conduct of elections in the country without having to consult its main rivals.

Zimbabwe went for the 2008 elections and this year’s polls with a negotiated Electoral Act, even though the Movement for Democratic Change (MDC) formations had reservations over a handful of clauses.

An amendment to the Electoral Act is one of the Bills in the government’s immediate plans and it has since been sent for printing after which it would be gazetted and brought to Parliament.

“Title of Bill: Electoral Amendment Bill; Ministry, Justice; Bill number H.B, 2013; status of Bill — sent to printers 04/12/13,” read the status of the proposed legislation as of yesterday. Also on government’s priority list is  the Biological and Toxin Weapons Crimes Bill and the Sovereign Wealth Fund of Zimbabwe Bill.

The Minister of Justice, Legal and Parliamentary Affairs Emmerson Mnangagwa was not immediately available to explain what the objective of the electoral law amendment was, but the secretary for legal affairs in the Welshman Ncube-led MDC, David Coltart said the amendments might see the enactment of electoral regulations effected by the incumbent in the run up to the July polls through the Presidential Powers (Temporary Measures) Act.

When the regulations were introduced by decree, ZANU-PF’s rivals protested saying they should have come through Parliament.

They argued that the use of a Presidential proclamation to introduce laws violated the principle of separation of powers.
Regulations introduced through Presidential powers fall away if they are not confirmed by Parliament within six months, making the latest amendments imperative.

However, Coltart expressed fears that in addition to addressing the issues covered by Presidential edict, ZANU-PF may as well introduce other fresh issues to the elections law.
“They are obliged to do so because just before elections President Mugabe used Presidential powers to bring regulations and they last for six months. We complained at the time that he was not empowered to do so, but the point is he did use them,” said Coltart.

“They may  well introduce other issues because they have absolute control of Parliament; the only thing is that they have to make it in line with the new Constitution that is the only limitation.”
When asked if they had been consulted, MDC-T secretary for legal affairs Innocent Gonese quipped: “What consultations? We are no longer in the inclusive government and consultations are done in Cabinet.”

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Annan, Coltart Among Tributes For Heroic Mandela

Zimeye.com

By Audrey Charowa

10th December 2013

 

Tributes for former South African President,  Nelson Rolihlahla Mandela (95) started to pour in soon after the announcement of his death by current President, Jacob Zuma on Thursday night.

The following are excerpts of statements made by statesmen, entertainers, activists, Sportsmen and celebrities  around the world in reaction to the nonagenarian’s passing.

Tributes internationally were led by US President, Barack Obama who himself was inspired by Mandela to become America’s first ever black President.  Obama eulogised Mandela thus:

“He achieved more than could be expected of any man… He no longer belongs to us he belongs to the ages. Through his fierce dignity and unbending will to sacrifice his own freedom for the freedom of others, Madiba transformed South Africa and moved all of us… And the fact that he did it all with grace and good humour, and an ability to acknowledge his own imperfections, only makes the man that much more remarkable.

To the people of South Africa, we draw strength from the example of renewal, and reconciliation, and resilience that you made real.

For now, let us pause and give thanks for the fact that Nelson Mandela lived — a man who took history in his hands, and bent the arc of the moral universe toward justice.  May God Bless his memory and keep  him in peace.”

Speaking to Sky News, Former British Prime Minister, Tony Blair, reflected “Where Africa is today is vastly different from the Africa Nelson Mandela grew up… He gave many Africans the confidence, strength & courage to overcome the problems of the past.”

Former UN Secretary General, Kofi Annan tweeted “I have lost a dear friend. Nelson Mandela stands as an inspiration to us all.”

British Prime Minister, David Cameron said “A great light has gone out in the world. Nelson Mandela was a hero of our time.”

Anti-Mugabe clergyman,  John Sentamu offered a prayer saying, “Today the world mourns the death of NELSON MANDELA. Gracious Father You gave up Your Son out of love for the world: Look with mercy on MADIBA”

British opposition leader Ed Miliband said that the world has ”lost the global hero of our age. Nelson Mandela showed us the true meaning of courage, hope, and reconciliation. Deep condolences to Graça Machel (Mr Mandela’s wife), his family and friends and to all the people of South Africa.”

Zimbabwe’s former Minister of Education,  David Coltart wrote “My prayer for Southern Africa is that we will never forget the deep rooted commitment to human rights lived out by #Madiba”

Human Rights Watch’s Africa Director said “#Mandela, Africa’s greatest hero, passes but his work lives inspiring and challenging us for commitment to human rights.”

Former South African President Thabo Mbeki took the opportunity to of Mandela’s passing to make what appears to be a snide swipe at the current South African Government’s record,  in his official address saying “As we mourn President Mandela’s passing we must ask ourselves the fundamental question – what shall we do to respond to the tasks of building a democratic, non-racial, non-sexist and prosperous South Africa, a people centred society free of hunger, poverty, disease and inequality, as well as Africa’s renaissance, to whose attainment President Nelson Mandela dedicated his whole life?

We convey our heartfelt condolences to his dear wife, Graça Machel, and the rest of his entire family.”

South African oscar winning actress, Charlize Theron, reminisced saying “I remember Soweto. Election day 1994. Standing in line with elderly South Africans voting for the first time in their lives.  #Mandela”

Human Rights Activist, Musician and U2 frontman, Bono said “As an activist I have pretty much been doing what Nelson Mandela tells me since I was a teenager.”

CNN Anchor Christian Amanpour wrote “Mandela kept the country together at a time when it very well could have spun into civil war.”  CNN hardliner, John King  could hardly hold back tears while on air.

“Mandela stood for justice and truth! Today the world lost a beautiful soul, fighter and true KING!! #RIPMandela” wrote Mogul Sean “Diddy” Combes.

Actress Kerry Washington “My thoughts and love go out to the Mandela family. Rest in Peace Madiba. You will be missed but your impact on this world will live forever. ”

Golf sensation Gary Player said “Nelson Mandela’s courage, forgiveness, love & hope inspired people around the world. He made me want to be a better man. RIP Tata”

Former boxing heavyweight champion, Muhammad Ali said “Mandela: One name. One man. One mission: Saving a nation from itself.  Few men in the history of mankind have had more impact on a nation and inspired the world.”

Veteran actor, Morgan Freeman, who played Nelson Mandela in the blockbuster movie Invictus said “As we remember his triumphs, let us, in his memory, not just reflect on how far we’ve come, but on how far we have to go.”

US thespian and Movie Producer, Tyler Perry said “There are only three people that I wanted to meet in life,  Nelson Mandela was one of them.”

Model and Fast and Furious actor Tyrese Gibson told his followers “We lost a man who literally dedicated his life on making a difference….. His heart will still beat…”

Entertainer Jamie Foxx tweeted to 3.5million followers “Thank you for your mark you left on Humanity Mr. Mandela. Prayers to his family,  friends and the people of South Africa.”

Head of Zimbabwean mega-church, Celebration Church, Pastor Tom Deuschle passionately wrote “One of Africa’s few examples of leadership and humility! A man who served his fellow man, someone who exemplified Jesus call to be a reconciler! Nelson Mandela — you served Africa well!”

MDC UK member, Angelbert Munjanja eulogised thus “Mr Mandela was a hero and a father of Southern Africa. Like a true warrior he slayed the beast and freed his people. He will be greatly missed but he will never be forgotten”

Zimbabwean diasporan human rights activist Gladys Meck said “May his very great soul rest in peace . He was so loved and revered the over. He had the heart of a saint. One of the few politicians who believed in true reconciliation and also practiced it. You fought the good fight Tata. Hamba Kuhle!”

Mandela who was only removed from the US terror watchlist in July 2008 will be buried in his traditional home after a state funeral it has been announced by Jacob Zuma.

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Friends of Zimbabwe need to facilitate a national dialogue

Facebook article

By Arthur Gwagwa

9 December 2013 

Anybody who truly cares for Zimbabwe and the collective hopes of its people should be deeply concerned by where the country is at the moment. Nobody would like to see the country slide back into the pre-2008 troubled waters. If it does, God forbid, lives would be lost. That is what is at stake. The above sentiment try as best as possible to capture the current national mood. How can the Zimbabwe issues be resolved? Although no one has clear answers, high-level political dialogues and settlements can only bring a temporary reprieve but will leave the problem still rooted in the ground. What is needed instead, is an honest, open, inclusive and broad-based dialogue among Zimbabweans. Both the SADC and the international community can play a part in supporting and facilitating this process. This process, it is proposed, could in the long run help uproot the multiple problems rooted in our history that has a very dark underbelly.

Historical roots of Zimbabwe’s problems

Since 2000 Zimbabwe went through a sustained political strife until 2008. The strife of 2008 prompted the international community and in particular the Southern African Development Community (SADC) to engage all the political actors in Zimbabwe to resolve the crisis, and that in turn resulted in a political agreement that established an inclusive government that took office in February 2009.

However, what we quickly forget is that Zimbabwe has been the scene of political conflict for the past 50 years, with peace times simply being occasional episodes in a general drama of pain and suffering. In the 1950s we were starting out a more civilized path of respecting all our people, a trend which was abruptly derailed when radicals and hardliners on both sides of the political spectrum chose violence to decide the contestation over power. As the World Bank recently summed it aptly, the country simply does not have core systems to resolve political and economic (power) contests. This has a history behind it.

As David Coltart recently put it across, ‘It is shameful that we as white Rhodesians treated great men and women like Enoch Dumbutshena and countless others as second class citizens. In doing so we squandered the opportunity of securing a peaceful transition to majority rule and condemned Zimbabwe to a brutal civil war which poisoned our nation, poison which persists to this day through men (on both sides let it be said) who have had their minds bent by a bloody war. As a result we have suffered 50 years of trauma’.

In the 1970s, the country, known as Rhodesia then, endured a civil war when black nationalists fought to overthrow a racist minority white government. Both sides committed atrocities, including crimes against humanity, war crimes and torture, and some 50000 people died in the conflict. Under the Smith government, the rule of law was often not observed. The declaration of rights, in a series of constitutional enactments, was not justiciable. Fundamental human rights were violated with impunity. At independence in 1980 no-one was held to account for the crimes committed prior to independence. In the 1980s there was a further civil conflict in the south west of the country in which some argue that genocide was committed, and certainly torture and crimes against humanity were widespread, and a further estimated 20000 people were killed. The culture of impunity started in 1980 continued as no-one has ever been held to account for those post-independence crimes.

As Coltart (ibid) puts it, ‘Zimbabwe has gone downhill economically for the last 50 years because we have allowed narrow partisan or racist interests to dominate out political discourse. We are the classic example of a house divided, falling. Until we end that, the massive potential of this great Nation will not be realized’. According to the World Bank, Zimbabwe has a solid backbone of infrastructure and human capacity, but little if any institutional capacity, especially in core government functions, service delivery to citizens, and the private sector.

Whereas, the pre-independence conflict culminated in a political settlement called national unity and reconciliation and the pre-2008 conflict gave rise to a political settlement often known as the Global Political Agreement, this paper argues that a political settlement is not adequate to resolve the current state of disquiet and neither can a cosmetic truth and reconciliation process. Instead there is an urgent need for a NATIONAL DIALOGUE on issues that matter to the people, right from villages, town halls and the state house.

For us to chart a course towards a more secure, prosperous and sustainable future it really is time for us to start again a little higher, so that as a Nation we once again strive to achieve the ideals and principles that we have always aspired for. When we do so, one could never doubt, that all the promises and good that Zimbabwe possesses will be realized.

As a nation we are all affected, and none can hope to solve these challenges on their own therefore now is the time to “shake off complacency” and throw aside old habits that reinforce the status quo.

Economic problems

At the moment, Zimbabwe is faced with multiple challenges, not least of which is the economy, which is hanging on the cliff edge. According to leading economists, the economic prognosis is very bad. The banking system is showing signs of severe stress and failure. The Reserve Bank is insolvent and until it is recapitalized it cannot support any of the banks that are facing cash problems. A month ago one Commercial Bank was unable to pay out its depositors, last week the list had grown to 5, 2 of these have virtually stopped functioning. The Banks now have 35 per cent non performing debt, they owe each other money through the interbank market and they are owed hundreds of millions of dollars by the State organisations that have just had hundreds of millions of debt written off in their balance sheets. There is simply no good news in the local markets and the sense of crisis on the streets of our cities is palpable.

Regarding the diamond revenue, there is grim news that the easy pickings from alluvial beds are now exhausted and what remains are billions of carats of diamonds locked into a hard conglomerate that is very difficult to mine and process without destroying the stones and producing a very expensive diamond laden dust. The existing mines are all in trouble and are scaling back on their operations.

According to a leading economist, the Reserve Bank’s reported $2,4 billion debt might throw a spanner in the works of the current delicate negotiations with the IMF. An IMF review has just been concluded, another will take place in the New Year, and the government must be able to report progress in fulfilling the undertakings given earlier this year when the IMF SMP was agreed and signed. The temptation to go back to printing money, to use the remaining balance of the SDR reserves for recurrent expenditure, is huge. However either action would simply trigger the final disintegration of what is left of the economy.

Failure of Politics and representative democracy

As the country fumbles through economic darkness, there is no word from the opposition, the MDC. Although one would imagine that they are currently re-grouping and re-charging, being quiet at such a crucial juncture is certainly a huge disappointment to those who expected them to be laying policy alternatives on the table, and holding the government to account for its policies or lack of them. The MDC-T has gone missing in this crucial moment dominated by post-election economic inertia. There are no signs of frontline structured opposition politics; instead, they have set themselves to react to Zanu PF’s failings instead of taking the initiative and guide from their own agenda.

The failure of the opposition is symptomatic of the wider failure of representative democracy not only in Zimbabwe but in the region and the world at large. Although representative democracy continues to offer an ideal framework for governance and has served major democracies very well, it is currently facing challenges across whole spectrum of established and emerging democracies as well as in fragile states such as Zimbabwe.

Zimbabwe has repeatedly gone through a series of election cycles characterized by violence, voters’ disenfranchisement and electoral fraud. With very little if any institutional capacity and systems to resolve political contests, this has left most Zimbabweans questioning the benefit of participating in elections and value of democracy generally. The failure of representative democracy points out to serious flaws in the extent to which citizens have been engaged on issues that truly matter to them. A lack of participation in civic affairs, local and national dialogues has produced a placid population that is amenable to political indoctrination, and that lacks the assertiveness to exercise the right to political participation and change their own government.

While there is a desire for political participation, Zimbabwe lacks a robust and independent normative framework that facilitates national dialogue on issues that matter. 5 rounds of the Afrobarometer between 2011 and 2013, show high demand for democracy, desires for participation (at least as voters), deep skepticism about the state’s ability to deliver public goods and services, increasing reliance on traditional authorities as a bridge to central government, and an increasing disinterest in the youth in conventional politics.

The challenges to representative democracy are not unique to Zimbabwe but are also reflected in other countries where in recent decades electoral turnout, party membership and partisan identification have declined. There has been sustained democratic backsliding in the SADC region. The recent endorsement of an undemocratic election in Zimbabwe is a clear indication of that backsliding. Globally, changing culture and technology also reflects itself in the democratic process. Also in most Western European countries profound changes in the economy, society and technology are creating a new political culture leading to detachment from the formal political process, most evident amongst the disadvantaged in society. It is also apparent amongst those who are politically active but who often choose to channel their activism elsewhere rather than through political parties. In the USA, the recent government shutdown, increased citizens disenchantment with party politics, which has been characterized by severe polarization.

While there is no doubt that representative democracy should and will remain the ideal international framework for governments including Zimbabwe, there is a need to address the causes of this backsliding bottom up. This, in our view, lies in creative approaches to citizen engagement between the elections. Where appropriate, national policy needs to be more accessible to people through greater use of engagement mechanisms that provide opportunities for people to participate in issues that affect them across the country. At the national level, policy-making is often several steps removed from everyday experience. If done properly this would help link the bridge between lofty values of human rights and democracy to the issue of service delivery, directly engages the attention of citizens. However this cannot be achieved without a double-barreled approach, to enthuse citizens to participate but also enhance the capacity of state institutions to engage. Although Zimbabwean parliament has a weak avenue for such engagement, Zimbabwe lacks the basic infrastructure such as information technology to facilitate citizen engagement with state institutions.

Need for a new approach on Zimbabwe?

Being in the midst of a period of great economic and political consequence, Zimbabwe is facing a test of unprecedented proportions and an existential crisis unlike any it has experienced in its long and tumultuous history. There is a need for creative approaches in averting a human disaster but the question is; where do we start as a nation? Periods of historical convergence such as the one Zimbabwe is undergoing can also bring about lasting solutions, if people come together and realise that through their collective hopes, they can drive away fear and usher a nation into a new season. The current challenges cannot be solved by another political settlement that is not inclusive and broad-based but by a citizens dialogue both at national and local levels. Such a dialogue could be akin to a citizens jury or may assume any form provided people’s current grievances are adequately addressed and citizens are fully involved in shaping the future they would like to see.

In charting a course towards a national dialogue, there is an urgent need to recall on Zimbabwe’s founding values and the vision we all held at independence. The vision and the values are found President Mugabe’s pre-independence speech when he said ‘If yesterday you hated me, today you cannot avoid the love that binds you to me and me to you……I, therefore, wish to appeal to all of you to respect each other and act in promotion of national unity rather than negation of that unity”.

These words and the rest of his speech encapsulated the whole discourse of universal values of peace, freedom, social progress, equal rights and human dignity, enshrined in the Charter of the United Nations and in the Universal Declaration of Human Rights, which are no less valid today than when, over half a century ago, those documents were drafted by representatives of many different nations and cultures.

The solution to this national crisis lies in an inclusive national dialogue where we remind each other of the nation’s founding values. Shared values define a nation and provide a moral compass in times of trouble. A value-based leader’s outlook is not warped by the vicissitudes of time or the environmental demands. A value-based leader would rather be alienated from others to be true to self just as Abraham Lincoln once said, ‘When I lay down the reigns of this administration, I want to have one friend left and that friend is inside me’.

Zimbabwe needs to embrace its founding values and discard exclusive, totalitarian and racist policies. As David Coltart recently said, we have more than enough Zimbabwean talent to find solutions to our problems – we have tens of thousands of Zimbabwean citizens, living both within and without Zimbabwe, who want ZIMBABWE to develop, who have a deep rooted passion and commitment to ZIMBABWE and who are ready to put their intellect and capital to work here. They have the ability to get OUR industries, mines, farms, hospitals, schools and tourist resorts working again. They have the desire to put ZIMBABWE first, not some foreign nation.

The government needs to build a broad national consensus and implement policies which will build domestic confidence and which will enable them to tap into this vast pool of national talent. We need to realize that our people are our greatest asset. A nation can have all the minerals in the world but if those minerals are not developed by clever, talented, dedicated, patriotic, honest and passionate citizens – of all races – they will just be squandered.

The government needs to initiate an honest national dialogue with all our nation’s people. A national dialogue can sit in the current Zimbabwean constitutional framework, which provides a normative framework for citizens’ engagement. A national dialogue can be the basis for the next stages of constitutional renewal focusing on the importance of strengthening citizens participation and democracy through demand for strict adherence to constitutionalism. Active participation by as many people as possible in national processes is essential for a healthy democracy as it encourages a shared understanding, builds cohesion and instills confidence in the institutions and the people who are elected to represent us.

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Senator David Coltart Blog – Zimbabwe’s diamond deposits must be exploited efficiently, honestly and in the national interest

Senator David Coltart Blog

By David Coltart

9th December 2013

We have been told for some time now that the alluvial deposits of diamonds at Marange are fast running out which has now been confirmed by the following article in today’s copy of the Herald.

Zimbabwe’s diamond deposits in Marange have been allocated under the tenure of the previous Minister of Mines to a variety of companies which have very little experience in mining diamonds. These companies have exploited the cream of our deposits with very little to show for the people of Zimbabwe in terms of dividends and investment into Zimbabwe’s infrastructure. They are now complaining that they need new allocations of alluvial diamond deposits because in their own words (in the article) “(their) ore is much deeper to depths of about 40 metres and some of the areas (they) have had to abandon mining because it was no longer commercially viable.”

Kimberley and other mines throughout Southern Africa, including the rich Botswana mines, have all been mined successfully and profitably way below 40 metres. Indeed both the South African and Botswana economies have been built on the back of these very mines. However these deposits were exploited by companies which had the expertise to mine efficiently and crucially which paid their taxes and dividends correctly and on time. The Herald article confirms what we have feared for the last 5 years since these diamond fields were allocated to inexperienced companies – namely that they do not have the expertise to mine efficiently and that they are not ploughing back into Zimbabwe what they should be.

The Zimbabwean Government would be well advised to cancel these contracts and to enter into joint agreements with companies which have demonstrable experience in diamond mining. Botswana has shown that agreements such as these can be entered into in a manner which benefits the country – we should be asking the Botswana Government to assist us in entering into new contracts which will be more beneficial to Zimbabwe than the experience of the last few years.

In addition a thorough audit should be conducted of the diamond mining operations of the last few years. It is criminal that some have made such windfall profits out of this unique national resource without hardly any benefit to show for the people of Zimbabwe. Those responsible for this appalling state of affairs should be held to account for their actions.

http://www.herald.co.zw/diamond-miners-hit-hard-rock/

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Beggars should not go for luxury

The Herald

By Joram Nyathi

6th December 2013

 

Once upon a time there was a man, one Hon David Coltart. He declined a ministerial Mercedes Benz on his appointment as Education minister. This gesture elicited sneers from his peers.In an earlier era, His Worship Solomon Tawengwa had pleaded for our empathy.

He needed a four-wheel-drive vehicle. As mayor, he needed to navigate Harare’s treacherous manholes, sorry, potholes, to deliver service to city residents.

I can’t remember but I believe his wish was ultimately granted. Since then no big man in our country accepts anything smaller.
The trouble is that Zimbabwe is a small, poor, rich country.

So often we are out there with a begging bowl to meet the real needs of the poor, not the synthetic wants of our big man. The weather has been very unkind lately, making food security for our rural folk a major challenge.

So we must beg as a nation. And what’s that got to do with Coltart or Tawengwa? It’s about our national priorities, managing our resources and cutting our cloth according to our size. Zimbabwe has just come out of an election.

Our small country has been quartered into 210 constituencies and an extra 60 legislators chosen by proportional representation. That means we have 270 Members of Parliament for a nation of just 13 million souls.

I haven’t mentioned senators and their perks. Ordinarily that should not be a big problem. With “enough” resources I don’t mind everyone being one’s own MP. But we don’t have limitless resources and most of our minerals are still in their natural state in the ground.

Those which have been extracted are exported in their raw state to enrich other people’s nations. So is our tobacco. But we can manage our resources better. Our honourable MPs are already scanning the horizon for four-wheel-drive imports. These have become a status symbol.

I am not interested in crunching numbers. But imagine what would happen if the money required to import nearly 270 4×4 vehicles were invested in Willowvale Mazda Motor Industries to assemble them locally!

WMMI assembles sturdy Mazda BT-50 vehicles which can traverse the worst terrain in Zimbabwe. They cost far less than your high-maintenance, fuel-guzzling Prado, Chevrolet, Range Rover Discovery, BMW and Jeep among others.

This imported luxury is not affected by sanctions. Government should simply decree that every official below the level of a minister should get their vehicle from WMMI.

The same should apply to MPs. Those who want to import should pay punitive duty. Surely beggars cannot afford to be finicky about vehicle models.

We can’t afford luxury and extravagance at the same time we are begging. The point is not to dole out money to Willowvale Mazda Motor Industries. It is to give it capacity for higher productivity.

It is to enable it to create jobs by opening up branches across the country. It is to enable the company to employ the many graduates and artisans which our universities and colleges throw onto the streets every year.

Above all, it is to save the little foreign currency earned from tobacco and other exports which can then be deployed to other productive sectors such as manufacturing, health, education and agriculture.

Imagine the goodwill this modest gesture by our MPs would engender in the nation! Once Government demonstrates indeed that charity begins at home, the nation will love the Mazda brand.

Soon we should begin to earn foreign currency from regional exports the moment people learn that the Mazda assembled in Zimbabwe is almost a status symbol.

Former Finance minister Tendai Biti indicated in his last budget that the country had a trade deficit of almost US$4 billion. Because our exports are so limited, much of the foreign currency we use to import second-hand vehicles, human hair and many dangerous skin lightening products never returns.

That means in real terms we have fewer US dollars in circulation with every import, much of which has nothing to do with essential raw materials or production technologies beside computers.

Through programmes such as the land reform, black economic empowerment and education President Mugabe has restored the dignity of Zimbabweans and indicated to us the way to prosperity.

Unfortunately, we have not learnt to be modest in our desires, in our management and consumption of what we should only hold in trust on behalf of the poor or generations still to come.

We have not learnt to be modest in spending the little foreign currency earned through sweat and blood from back-breaking labour on the farms.

The culture of saving and service must start at the top.

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David Coltart’s Blog – THE SOLUTION TO OUR PROBLEMS LIES IN OUR PEOPLE

THE SOLUTION TO OUR PROBLEMS LIES IN OUR PEOPLE – ALL OUR PEOPLE

By David Coltart

26 November 2013

Nathaniel Manheru was a real treat this morning in Saturday’s Herald.

I will give you a few classic quotes:

First of all it is entitled “Zimbabwe: Victory without a party” which actually says it all. But here are some more quotes form the body of the article.

“Both at individual and at national levels, the decision-making matrix has become quite complex, forbidding in fact.”

“The fastest casualty of electoral victory is the happy world of campaigning where everything is possible. After that world goes, in comes an imperfect and dismal one, a world where ‘it can’t’.”

“We seem to have won on indigenisation in order to get the reprieve and legitimacy to reverse it.”

“With most companies in debt, without capital, underutilised, on old technology and uncompetitive, predators are on the prowl.”

“Key national assets are being seized while we wring our hands in learned despair.”

“And the conclusion of all this for Zanu-PF … and her aspiration to indigenisation is clearly disheartening.”

At the conclusion of the article Manheru says that his purpose in airing the problems is to seek solutions. The first step towards a solution is for ZANU PF to acknowledge that at the very core of this economic distress is the fact that their economic and political policies are fundamentally flawed. All of us living in the real world knew all along that ZANU PF’s campaign promises were a lie, based on failed policies that were bound to keep on failing. Aside from the gross illegatities which led to this “resounding victory” the fact is that ZANU PF tempted some voters through making promises which either they could not keep or which would have deleterious consequences for the economy. The claim that somehow they could realise billions of dollars internally by indiginising local assets was complete poppy cock. The writing off of millions of dollars of money owed to parastatals and local councils was a cunning electoral ploy but was always going to have catastrophic consequences for ZESA and our local councils in particular.

ZANU PF’s solution to all of this is to send Patrick Chinamasa off to China to mortgage national assets. If the Chinese do oblige all that will do is provide some temporary relief but it will have catastrophic consequences for our children’s inheritance. It needs to be said loud and clear – selling off national assets to the Chinese is against our national interest; indeed I would venture to say that it amounts to treason.

What ZANU PF needs to recognise is that at the core of our problems is a basic lack of confidence in their ability to govern. No matter how one dresses it up the fact remains that the people know that this is the same ZANU PF which almost completely destroyed the economy in 2008 and which hasn’t changed. Inevitably that will deter local investors from investing domestically, will cause capital flight, will deter Zimbabwean diasporan human capital from returning and critically will make foreign investors look elsewhere. That was why one bank has reported massive capital flight around the election. That is why there is little cash in the system. When people lack confidence they take their money out of banks and put it under the pillows.

Selling off national assets to the Chinese is not going to build confidence. The people are not stupid. They can see how the Chinese operate in Africa – it is fundamentally an exploitative relationship. The Chinese are quite naturally interested in boosting their own domestic economy; they have so much catching up to do that they need whatever resources they can lay their hands on at the cheapest price. The history of their “investments” in Africa is littered with examples of contracts which have benefitted them to the detriment of Africans. One just has to consider the story of the new power station recently built in Botswana which is totally inappropriate. Look also no further than the MA60 aircraft supplied to Air Zimbabwe by the Chinese – not one is flying just a few years after they were supplied, nor are they likely to fly. Our precious diamond resources, many of which have been handed to Chinese companies to exploit, have not benefitted rank and file Zimbabweans. The irony is that for all ZANU PF’s claims that Zimbabwe will “never be a colony again” we are rapidly becoming just that – a Chinese colony or dependency.

The solution to this national crisis does not lie in China – it lies right here at home. ZANU PF needs to end its exclusive, totalitarian and racist policies. We have more than enough Zimbabwean talent to find solutions to our problems – we have tens of thousands of Zimbabwean citizens, living both within and without Zimbabwe, who want ZIMBABWE to develop, who have a deep rooted passion and commitment to ZIMBABWE and who are ready to put their intellect and capital to work here. They have the ability to get OUR industries, mines, farms, hospitals, schools and tourist resorts working again. They have the desire to put ZIMBABWE first, not some foreign nation.

But ZANU PF has to change – whilst they are in de facto control they need to realise that they cannot govern unless they build a broad national consensus and implement policies which will build domestic confidence and which will enable them to tap into this vast pool of national talent.

President Mugabe visited Singapore last week – that is a country which had a smaller economy than Southern Rhodesia had in 1958 and yet is now an economic powerhouse. It had no mineral resources whatsoever with which to build its economy; it had no diamonds to sell off. The miracle of Singapore happened because there was a sustained investment in its own people, primarily in education. And once it had educated its people it retained them and those educated citizens have transformed that nation. Whilst we in Zimbabwe have educated our people well we have not had economic and political policies which have retained our intellectual capital. Instead we have hounded out people like Strive Masiyiwa , and thousands of chartered accountants, doctors, architects, mechanics and electricians. Those people have left because thy didn’t like the authoritarian nature of our society and they were sufficiently talented to be able to move easily.

We need to realise that our people are our greatest asset. A nation can have all the minerals in the world but if those minerals are not developed by clever, talented, dedicated, patriotic, honest and passionate citizens – of all races – they will just be squandered. There is a home in Singapore for everyone – Chinese, Malay, even whites – and it is they who have developed it into the economic powerhouse it is today.

So what ZANU PF needs to is to enter into an honest national dialogue with all our nation’s people. It needs to be talking to the Strive Masiyiwa’s of our nation – people who have demonstrated an ability to run large businesses honestly, efficiently and profitably – to find out what solutions they have for our problems. It needs to find out what will encourage the Strive Masiyiwa’s to return home and put their considerable shoulders to the wheel. They need to recognise that there is human capital out there in the form of the Tendai Biti ‘s of this nation who love this country with a deep rooted passion and what is more are honest, clever and hard working…and have solutions.

Zimbabwe has gone downhill economically for the last 50 years because we have allowed narrow partisan or racist interests to dominate out political discourse. We are the classic example of a house divided, falling. Until we end that, the massive potential of this great Nation will not be realised. The ball is now firmly in ZANU PF’s court – whether one likes it or not, they are the de facto governors until 2018 – to decided whether they are going to continue the failed policies of the Rhodesian Front and their own policies of the last 33 years, or whether they are going to turn over a new leaf and engage all Zimbabweans to get us out of this quagmire.

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Teacher Incentives Create Rift

The Financial Gazette

By Theoppy Ncube

21 November 2013

BULAWAYO —— Incentives, which have served some teachers very well, and others not so well, have become a highly charged and divisive issue among the local teaching fraternity. Because of the resultant contention, the incentives have increasingly been viewed as unnecessary by teachers’ unions who feel that they fly in the face of real salary increments and undermine their effort to lobby with one strong voice.

With a promise by the ZANU-PF government of salary increases well above the poverty datum line (PDL), the unions believe that they could afford to let the divisive incentives go once President Robert Mugabe’s administration has fulfilled its promise.

The PDL is used to evaluate both absolute and relative poverty by measuring the median income of people below a certain income quintile.

It represents the cost of a given standard of living that must be attained if a person is deemed not to be poor. In other words, an individual whose income falls below the PDL is deemed to be poorly paid.

Government workers have therefore been up in arms with their employer, pressing for PDL-linked salaries and improved working conditions.

Before the introduction of the incentives, teachers were migrating to neighbouring countries such as Botswana and South Africa in  search of greener pastures.

As a result, the standards of education have declined to worrying levels while morale on the part of the teachers has hit rock bottom.

Incentives were introduced in 2009 by David Coltart, then minister of education, sport, arts and culture, to motivate and encourage teachers to continue in the profession.

Since then teachers in urban schools have received between US$150 and US$400 in incentives, depending on their schools, plus a monthly salary of about US$300 from the government.

It has been a double blow for parents who are being made to pay for the teachers’ incentives on top of the usual tuition fees.

At the same time, these parents are also indirectly funding the schools through Pay As You Earn and other taxes paid to the fiscus.

To most of these parents, what matters most is to enable their children to access better education.

In spite of their sacrifice, all is not well in the teaching profession. Cracks are emerging between unions and their membership.

The major bone of contention arising from the incentives has been that what a teacher gets in incentives is influenced by how affluent the school and its parents are.

They have worked in favour of teachers in private schools and others in low density areas while hugely disadvantaging those working in rural areas and high density suburbs where incomes of parents are much lower and at times non-existent.

This has caused discord among teachers as with such disparities they cannot all speak with one voice.

In its campaign for the July 31 elections, ZANU-PF promised to review salaries for teachers and pledged this would take top priority once the new administration was in power.

Talks have been under way with unions submitting their proposed salaries to government. Unions  expect the lowest paid worker to earn at least US$600.

Vusumuzi Mahlangu, the Bulawayo provincial co-ordinator of the Progressive Teachers Union of Zimbabwe, said once the salaries have been reviewed to levels above the PDL then there would be no need for the incentives.

“The incentives were a stop-gap measure to counteract the low salaries teachers were receiving and the incentives are a source of conflict between teachers and parents. If something comes up, then incentives will not be necessary as the teachers will be earning above the PDL, but at the moment it’s just a promise that has been made by the government,” said Mahlangu.

The chief executive officer of the Zimbabwe Teachers Association, Sifiso Ndlovu, concurred with Mahlangu.

Ndlovu said incentives would no longer be necessary once the government has fulfilled its promise.

“The only positive way of eliminating the incentives is through the increase of salaries. It is not possible to carry the burden of salaries and remuneration of teachers at the same time,” said Ndlovu.

While the scrapping of the incentives would be welcomed by parents, provided it does not lead to a decline in education standards, teachers are urging government to approach this emotive issue with caution.

They argue that it would be too early to do away with the incentives since the government has just made a promise which it is still to implement.

Teachers view the incentives as something necessary and a form of compensation for all the years they were earning very little.

Dorcas Ncube, a teacher at Milton High School, said the payments have incentivised them to work even harder and produce good results.

“There are no prospects of us getting the proposed new salaries.

“For how long have we been struggling with these mere US$200 monthly salaries, while security guards without degrees are earning US$600 and above and thus we need to be compensated for that? Good incentives go hand in hand with good results and those that are poorly remunerated produce poor results,” said Ncube.

Cedric Mashombe, a teacher from Gwanda High School, said it would be unfair to scrap the incentives without first raising the salaries to levels commensurate with their effort.

“Incentives should not be scrapped off as they ensure that teachers have a reason to stay and work harder given their (poor) salaries. We should not base our arguments on pledges for salary increases that have not yet been fulfilled,” said Mashombe.

From the arguments, both unions and the teachers appear to have valid arguments. None of them would want the incentives to stay a day longer once the government has acceded to the demands by the unions.

What remains to be seen is whether the government would hike salaries for civil servants in line with the demands by the unions to allow for the scrapping of these divisive incentives.

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Government owes $79 million in unpaid education bills

SW Radio

By Tererai Karimakwenda

19 November 2013

It has been revealed that government owes about $15 million in secondary school fees for students supported under the Basic Education Assistance Module (Beam) and an additional $64 million is owed to tertiary institutions in the country, according to the NewsDay newspaper.

The report said Parliamentary Portfolio Committees that deal with education heard evidence from two Public Service officials on Monday, both of whom revealed that no funds had been remitted by government since the beginning of the year.

Appearing before the Committee on Public Service, Labour and Social Welfare, director of Social Services Sydney Mhishi reported that the Ministry had paid primary school fees for Beam students, but the bill for secondary school students has not been paid.

The Director of University Education Martha Muguti appeared before the Higher and Tertiary Education Committee, and reported that only $50 000 out of a budget of $380 million had been received by her Ministry. She also said government owes $64 million for about 44, 000 students under cadetship programmes.

The former Minister of Education, Sport, Art and Culture, David Coltart, said everyone agrees that education is a priority, but the sector has been “woefully underfunded” for the last two decades.

He explained that the Education Ministry employs two thirds of the civil servants’ force with 109, 000 teachers and a huge administrative infrastructure that includes over 8,000 schools. But this has not translated into funding.

“In June we only received $20,000 dollars to run that entire infrastructure so that just demonstrates that there has not been any political will. They say that education is a priority but it’s just talk. It’s not backed up by any money,” Coltart said.

He added that at least 380,000 children who are orphans or disadvantaged in some way qualified for the Beam programme last year, but were turned away due to a shortage of funds. Many end up on the streets.

The country’s educational system was once regarded as one of the best on the continent, if not the world, and Zimbabwean students went on to excel in other countries. Coltart the country still produces “high calibre” students, but many are failing to graduate because they cannot continue their education.

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